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HomeMy WebLinkAboutR16-105 Open Space Funds - Dry Lake Property - Gypsum Commissioner M41c4N Out moved adoption of the following Resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE,STATE OF COLORADO RESOLUTION NO. 2016- toe RESOLUTION APPROVING THE GRANT OF OPEN SPACE FUNDS TOWARDS THE TOWN OF GYPSUM'S PURCHASE AND PRESERVATION OF THE DRY LAKE PROPERTY WHEREAS,on or about March 8, 2016, the Town of Gypsum (hereinafter"Town") entered into a contract to purchase approximately 275.41 acre property, located approximately 4 miles north of the Town(hereinafter the"Dry Lake Property"or the"Property"); and WHEREAS,the Dry Lake Property is depicted on the map attached hereto as Exhibit A and incorporated herein by this reference; and WHEREAS, the Town plans to use the approximately 157.67 acres of the Dry Lake Property depicted in Exhibit A as the"Recreation Portion" for a motorized recreation course along with associated parking and other recreational improvements (hereinafter"Recreation Property"); and WHEREAS,Town will encumber Recreation Property with a Restrictive Covenant, enforceable by Eagle County; and WHEREAS,Town will convey,and Eagle County agrees to accept, a perpetual conservation easement on portions of the Dry Lake Property identified in Exhibit A as the"Conservation Easement Portion"totaling approximately 117.74 acres (herein after"Conservation Easement Property")to protect open space and scenic qualities; and WHEREAS, through Eagle County Resolution No. 2016-064, Eagle County established its Open Space Program which permits the acquisition and/or permanent preservation of Open Space by Eagle County or the County in partnership with other public or private entities such as the Town of Gypsum; and WHEREAS,the Town's purchase of the Dry Lake Property, the preservation of the Conservation Easement Property and the restriction on the future use of the Recreation Property shall be collectively referred to herein as the"Project;"and WHEREAS, Eagle County desires to contribute$650,000 towards the Town of Gypsum's purchase of the Property and to reimburse the Town up to $50,000 for certain transaction costs associated with the purchase,placement of the Restrictive Covenant,conveyance of the Conservation Easement, including the present conditions report,title insurance, minerals r PPROV:•e TjJ FORM 1 Eagle County Attorney's By: Eagle County Commissioners'Office analysis, environmental review,water rights due diligence, closing costs and the like (collectively"Transaction Costs"); and WHEREAS,The Eagle County Open Space Advisory Committee voted unanimously at the May 9,2016 meeting to recommend the contribution of Eagle County Open Space Funds toward Project and associated Transaction Costs. NOW,THEREFORE BE IT RESOLVED by the Board of County Commissioners of the County of Eagle, State of Colorado: THAT,the Board of County Commissioners hereby specifically authorizes the expenditure of up to Six Hundred and Fifty Thousand($650,000) from the Eagle County Open Space Fund for the Project,with and additional amount,not to exceed Fifty.Thousand Dollars($50,000)towards Transaction Costs. THAT, such expenditure of Open Space Funds shall be subject to County's satisfactory due diligence inspection of the Property and review and approval of the following documents,which are attached hereto (without exhibits)and incorporated herein by reference: 1. Exhibit B- Deed of Conservation Easement 2. Exhibit C- Restrictive Covenant THAT,the Board of County Commissioners authorizes any Commissioner to execute on its behalf any and all necessary documents, instruments, papers or other forms necessary for completion of the Project defined herein. THAT, the Board of County Commissioners finds, determines and declares that this Resolution is necessary for the public health, safety and welfare of the citizens of Eagle County, State of Colorado. 1/Remainder of Page Intentionally Left Blank 1/ 2 MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held the 20th day of December, 2016. COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its 6 x'14 co BOARD OF COUNTY COMMISSIONERS ATTEST: ts, • 4,414- U 6121k-4— • OLOAP BY: Clerk to the Board of J ne McQueene� County Com issioners C air Jill . Ryan Co* issioner Kathy Ch,/dler-Henry Commissioner Commissioner seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner McQueeney 1/1y. fr Commissioner Ryan Commissioner Chandler-Henry 14 4 This resolution passed by + vote of the Board of County Commissioners of the County of Eagle, State of Colorado 3 •V d ffi4 i5 S 4 Y n •g ' '4s rn, "^* dAa4 °" } i Yje uH. v.viverlipv. , Acw,kwAsPA,VA,‘„,..*-1,;941,40,40 „ * 1 k v / ii iii i � ''' iiQ } 4 k S 4,y {',?4,,t t 1.40..d {e ',i ii , 4 y3. Ff ' ,,,� 6+ D" 1 ,� 47�. ter, . i•-,,,i- ,,,,,,..z:•,,,,,,,,,„ft.4.,••;.•,g:::.'1„:•.4,1:0;1';:q. • I -.X 0..... ' ‘,0••••v*/`•,-,4"'" •.' '. ,''. 4r4' D %■ Q4 .' � a : ,r iI i�1► r .`1" 3 ,�3�t .l�iii /` � '` n,af r 4 I►iijr 1 �f ! ,,; 41 ' ,l g'' ;f�i ;' 4 • ' r� .,... % 'i�ii .,;'.1/4 A■/1?1 ` ,4 I 4. ..,.'. ..; Ex f s r „�" ;,r}�,, /- 00� jl} tir )I� a x` m/ , +i° ,D `—°�� '/ sf / ^, r AVION,',.-•,v4'-',-o rrf°d Y �s� 't, „.e rn .4* ,, "' `,"fir ' i ; 0 �--f e CO' .. re T. f x x f � `i iii ' ` i �, ( �' ., ;�. iiii♦ f rn iii♦ ' * ♦iii♦ a). iii♦ a iiii ►i�f ` iiiiii� .a ' • ..:4. i wry. ♦ii , �r, ff , ■ N. °°, •30. d , i► " � �`� a 1 i ►ii r �� q �.�,i i„. „, i ` ♦ ®ii• After recording,please return to: Eagle County Attn: Toby Sprunk,Director of Open Space P.O.Box 850 Eagle,Colorado 81631 Any time the Property is transferred by Grantor to any third party, Grantor shall pay a transfer fee of$500 to Grantee and notify Grantee pursuant to the requirements of Section 11 of this Deed. DEED OF CONSERVATION EASEMENT Dry Lake Property THIS DEED OF CONSERVATION EASEMENT ("Deed") is granted on this day of , 2016, by the TOWN OF GYPSUM, COLORADO, a Colorado, home rule Municipal Corporation,whose address is P.O. Box 130, Gypsum, Colorado 81637 ("Grantor") to EAGLE COUNTY, COLORADO, a body corporate and politic,whose address is P.O. Box 850, Eagle, Colorado 81631 ("Grantee"). (Grantor and Grantee are collectively referred to herein as the "Parties"). RECITALS A. Description of Property. Grantor is the owner of the fee simple interest in approximately 117.748 acres of real property located in Eagle County, Colorado,more particularly described in Exhibit A and depicted in Exhibit B,both attached hereto and made a part hereof(the "Property"). B. Conservation Purposes. According to I.R.C. § 170(h)(4)(A) and Treas. Reg. § 1.170A-14(d),the conservation purposes of a qualified conservation contribution must include one or more of the following: (1)to preserve land for outdoor recreation by or education of the general public; (2)to protect relatively natural habitat of fish, wildlife or plants; (3)to preserve open space; and(4)to preserve historically important land or structures. The conservation purposes set forth in this Recital B and referred to hereafter in this Deed are collectively referred to as the "Conservation Values." The Conservation Values of the Property are as follows: 1) Open Space. [Treas. Reg. § 1.170A-14(d)(4)] The Property qualifies as open space because it is being preserved for the scenic enjoyment of the general public and pursuant to a clearly delineated federal, state or local governmental conservation policy and will yield a significant public benefit. z»: a. Scenic Enjoyment. The Property's meadows and woodlands contribute to the scenic character, openness, and variety of the local landscape. The Property is visible from Trail Gulch Road, and from surrounding federal land. The road and surrounding public lands are utilized year-round by citizens of the Town of Gypsum, Eagle County, and the State of Colorado. Conservation of the Property will provide significant public benefit,because development of the property into residential parcels would likely lead to or would contribute to the degradation of the scenic character of the area. b. Significant Public Benefit. There is a foreseeable trend of urbanization and rural subdivision development in the vicinity of the Property in the near future in the Town of Gypsum and the surrounding areas within Eagle County. There is a strong likelihood that development of the Property would lead to or contribute to degradation of the scenic and natural character of the area. c. Relatively Natural Habitat._The CE Parcels of the Dry Lake Property support characteristics of relatively natural habitat delineated at Treas. Reg. §1.170A-14(d)(3). The CE Parcels feature sagebrush shrublands,pinyon- juniper woodlands, and meadows that provide forage, cover,breeding habitat, and migration corridors for a variety of wildlife species, including migratory songbirds,raptors, small mammals, and big game. The CE provides Colorado Parks and Wildlife(CPW)-mapped summer range, winter range, and severe winter range for elk, winter range for mule deer, and overall range for black bear and mountain lion. These big game species contribute significantly to the biodiversity and the region and to the economy through hunting revenues. The Eagle County Comprehensive Plan states that the well-being of wildlife species of economic importance should be protected, and that development in areas critical to the continued well-being of Eagle County's wildlife populations should not be allowed. d. Open space. The CE Parcels possess the characteristics of open space delineated at Treas. Reg. §1.170A-14(d)(4) in that their preservation will provide scenic enjoyment to the general public, is pursuant to clearly delineated public policies, and will yield a significant public benefit. The CE Parcels are in an undeveloped and natural condition, featuring a mosaic of natural vegetation communities across varied topography, and are surrounded by undeveloped public lands administered by BLM. As such,the CE Parcels contribute to the scenic character, openness, and variety of the local natural landscape, and are visible to the public from surrounding BLM lands and Trail Gulch Road in the immediate area. Under the conservation easement,the CE Parcels will remain in relatively natural condition,providing an open space 2 buffer between adjoining BLM lands and recreational development/activity on the Restrictive Covenant Parcel of the Dry Lake Property. Preservation of open space, including scenic lands, is supported by state and local governmental policies, and brings significant benefit to the public,because development of the CE Parcels would likely lead to or would contribute to the degradation of the scenic character of the area. The Eagle County Comprehensive Plan and Eagle County Board of County Commissioners Resolution 2004-015 support the preservation of scenic open space using conservation easements. These Conservation Values are of great importance to Grantor, Grantee, and the residents of the Town of Gypsum, Eagle County, and the State of Colorado. It should also be noted that the terms of this Easement(defined below) do not permit a degree of intrusion or future development that would interfere with the Conservation Values. C. State Policy Concerning Conservation Easements. 1) C.R.S. § 33-1-101 provides in relevant part that "it is the policy of the state of Colorado that the wildlife and their environment are to be protected,preserved, enhanced, and managed for the use,benefit, and enjoyment of the people of this state and its visitors." 2) C.R.S. § 38-30.5-102 provides for the creation of conservation easements to maintain land "in a natural, scenic, or open condition, or for wildlife habitat, or for agricultural,horticultural,wetlands, recreational, forest or other use or condition consistent with the protection of open land, environmental quality or life sustaining ecological diversity. . ." 3) The Colorado Department of Transportation statutes (C.R.S. § 43-1-401, et seq.)provide that the "preservation and enhancement of the natural and scenic beauty of this state" are of substantial state interest. 4) C.R.S. § 33-10-101 provides "It is the policy of the state of Colorado that the natural, scenic, scientific, and outdoor recreation areas of this state are to be protected,preserved, enhanced, and managed for the use,benefit, and enjoyment of the people of this state and visitors of this state." D. Other Supporting Government Policy. 1) Eagle County Resolution No. 2002-123 provides for the creation of an open space mill levy for the purpose of acquiring, maintaining, or permanently preserving 3 open space to preserve wildlife habitat,protect working farms and ranches, conserve scenic landscapes and vistas,protect wetlands and floodplains, or provide public access points to rivers and streams. 2) Eagle County Resolution No. 2016-064 establishes that Eagle County is dedicated to preservation through its open space program of "wildlife habitat or migration routes; working farms and ranches; scenic landscapes and vistas; wetlands, floodplains or other riparian habitat"within and throughout Eagle County. 3) The Eagle County Comprehensive Plan states that: "Eagle County is a place where natural ecosystems are preserved and maintained in order to assure the health and wellbeing of local wildlife populations." 4) The Eagle County Comprehensive Plan states that: "The integrity, quality and interconnected nature of critical wildlife habitat in Eagle County should be preserved." 5) The Eagle County Comprehensive Plan states that: "A variety of approaches should be utilized to preserve land as open space"including conservation easements. E. Grantee Organization. Grantee is a tax exempt government organization. F. County Funding. Grantor's purchase of this Easement(defined below)was funded by the Grantee through the Eagle County Open Space Program. G. Documentation of Present Conditions. In order to document the condition of the Property as of the date of this Deed, a report has been prepared by Rare Earth Science, LLC and dated (the"Baseline Report"). The Baseline Report documents the Conservation Values and the characteristics, current use, and status of improvements on and development of the Property. Grantor and Grantee have viewed the Property at the time of the transfer of this Deed and each acknowledges that the Baseline Report is an accurate representation of the Property at the time of the transfer. The Baseline Report has been provided to both Parties and will be used by Grantee to assure that any future changes in the use of the Property will be consistent with the terms of this Deed. However, the Baseline Report is not intended to preclude the use of other evidence to establish the condition of the Property as of the date of this Deed. NOW,THEREFORE, in consideration of the recitals set forth above, incorporated herein by reference, and the mutual covenants, terms, conditions, and restrictions contained herein, and 4 pursuant to the laws of the State of Colorado, Grantor voluntarily grants and conveys to Grantee and Grantee voluntarily accepts, a perpetual conservation easement in gross ("Easement"), an immediately vested interest in real property defined by C.R.S. §§ 38-30.5-101, et seq., and of the nature and character described in this Deed, for the purpose of preserving and protecting the Conservation Values in perpetuity, subject to, and without affecting, any currently-existing rights, if any, of third parties or the United States, encumbering the Property, under Federal law, Colorado statutory law or common law ("Third-Party Rights"). 1. Purpose. The purpose of this Easement is to preserve and protect the Conservation Values in perpetuity in accordance with I.R.C. § 170(h),Treas. Reg. § 1.170A-14, and C.R.S. § 38-30.5-101, et seq. ("Purpose"). The Parties intend to permit acts on and uses of the Property that are consistent with the Purpose and not expressly prohibited by this Deed and to restrict or prohibit acts on and uses of the Property that are not consistent with the Purpose. In this Deed, "consistent with the Purpose" shall mean acts on and uses of the Property that have a positive impact,neutral impact, or no impact on the Conservation Values as determined by Grantee in its sole discretion. This Deed sets forth certain uses and activities that are expressly permitted and consistent with the Purpose, but subject to specified qualifications, conditions, and requirements of, and procedures for,prior notice to or approval of Grantee. Nothing in this Deed is intended to compel a specific act or use of the Property other than the preservation and protection of the Conservation Values. 2. Rights of Grantee. To accomplish the Purpose of this Easement, this Deed conveys the following rights to Grantee, its employees and its representatives: a. To preserve and protect the Conservation Values; b. To enter upon the Property at reasonable times to monitor Grantor's compliance with and otherwise enforce the terms of this Deed;provided that,prior to such entry, Grantee shall first provide reasonable notice to Grantor, and Grantee shall not unreasonably interfere with Grantor's use and quiet enjoyment of the Property; c. To prevent any activity on or use of the Property that is inconsistent with the Purpose of this Easement, Grantee may require the restoration of such areas or features of the Property that are damaged by an inconsistent activity or use, all as more fully set forth herein; d. To enforce the terms and provisions of this Deed; and 5 e. To place signs on the Property that identify the land as being protected by this Deed,the size,number, and location of which signs are subject to Grantor's reasonable approval; and f. All Development Rights as defined in Section 24 (Development Rights), except as specifically reserved by Grantor herein. Nothing in this Section 2 shall preclude the right of Grantee to enforce the preservation and protection of the Conservation Values of the Property, or any other provision of this Deed. 3. Rights Retained by Grantor. Grantor retains the right to perform any act on or use of the Property that is not prohibited or restricted by this Deed,provided that such acts or uses are consistent with the Purpose. 4. Management Plan. Grantor and Grantee have prepared and mutually agreed to a land management plan (the"Management Plan" or the"Plan"), a copy of which will be kept on file in the offices of Grantor and Grantee. The Property shall be operated and managed in accordance with the Management Plan or as otherwise set forth in this Deed. Grantor and Grantee shall review the Management Plan annually at the time of Grantee's monitoring of the Property, and the Plan shall be amended if determined necessary by either Party. If Grantor intends to undertake any activities not expressly permitted by this Deed or addressed in a current Management Plan, Grantor shall not undertake such activities unless and until Grantor has first prepared, and Grantee has approved, an amendment to the Management Plan. Any amendment to the Management Plan shall be reviewed by Grantee, and shall not be effective unless and until approved by Grantee in accordance with Sections 17 (Grantor's Notice) and 18 (Grantee's Approval) of this Deed. 5. Property Improvements. Improvements existing as of the date of this Deed are permitted. The installation,placement or construction of any other improvement is prohibited unless expressly permitted by this Section 5. a. Existing Improvements. At the time of granting of this Deed, there are no improvements on the Property. b. Road Construction and Paving. No new roads or paving are permitted on any portion of the Property. 6 c. Fences. Grantor may maintain,repair, replace or remove existing fences. Grantor may construct, maintain,repair and replace new fences anywhere on the Property,provided the location and design of such fences are wildlife friendly. d. Utility Improvements. Grantor's existing utility improvements, if any, including but not limited to: (i) electric power poles, transformers and power lines; and(ii) telephone and communications towers,poles, and lines; and(iii) gas lines ("Utility Improvements"), may be maintained, repaired or replaced with an improvement of similar size and type at their current locations on the Property without further permission of Grantee. The construction,maintenance, repair and replacement of renewable energy generating systems including,but not limited to, wind, solar, geothermal or hydroelectric, solely for uses permitted on the Property is permitted provided that such activity is consistent with the Purpose (also, "Utility Improvements"). Grantor may install Utility Improvements on the Property with a Road and underground, or may permit the installation of new Utility Improvements for service to adjacent land provided such Utility Improvements are installed underground. Except as provided in the foregoing sentences, Grantor shall not install,place, construct, or enlarge any other new Utility Improvements without Grantee's approval pursuant to Sections 17 (Grantor Notice) and 18 (Grantee's Approval) of this Deed. Following the maintenance, repair, replacement, enlargement or construction of any Utility Improvements by Grantor, Grantor shall promptly restore and re-vegetate any disturbed area to a condition consistent with the Purpose. Any easement, right of way or other interest granted to a third party by Grantor or otherwise reserved by Grantor to be used for Utility Improvements is subject to Section 7.g(Easements, Rights of Way or Other Interests)of this Deed. e. Signs. Grantor may place and maintain interpretive and directional signs provided such signs do not exceed four(4) square feet. Grantor may place larger signs on the Property with Grantee's approval pursuant to Sections 17 (Grantor's Notice) and 18 (Grantee's Approval). f. Trails. Grantor shall not maintain, construct or establish any Trail on the Property unless approved by Grantee pursuant to Sections 17 (Grantor's Notice) and 18 (Grantee's Approval) of this Deed. The surface of the Trails shall be dirt, gravel, rock, or other natural surface, the width of any Trails shall not exceed six (6) feet, and the Trails may include railings and steps. Grantor reserves the right to make improvements to the Trails and allow use of the Trails as may be required under the law to comply with 42 U.S.C. §§12101 et seq. 7 6. Resource Management. Grantor recognizes the importance of good resource management and stewardship to preserve and protect the Conservation Values. To this end,Grantor shall conduct the following uses of the Property in accordance with the provisions below. If Grantee believes any resource management practice(s) are not consistent with the Purpose, Grantee, in addition to all of its rights under this Deed,may request that the Parties consult with a mutually agreed upon resource management professional with a mutually agreed upon fee for services. This professional will provide written recommendations for said resource management practice(s) and Grantor shall follow the resource management professional's reasonable recommendations, only after Grantor and Grantee have jointly determined that said recommendations are consistent with the Purpose. Grantor shall pay the costs for such consultation, including any fees for the resource management professional. a. Motor Vehicles. Grantor, and any other entity or person Grantor authorizes, may use motorized vehicles, including without limitation all-terrain vehicles and agricultural and construction vehicles (i) on any Roads, and(ii) on any portion of the Property that is not a Road,provided that such vehicles shall be used only for resource management,weed control, and habitat restoration. Notwithstanding the foregoing, Grantor shall have the right to permit motorized access on the Trails in order to comply with 42 U.S.C. §§ 12101 et seq. Any portion of the Property disturbed due to the use of motor vehicles shall be restored to a condition as close to its original condition as reasonably practicable. a. Relatively Natural Habitat Grantor may conduct major habitat management activities such as chaining juniper or sagebrush, restoring habitat, and conducting prescribed bums in accordance with the Management Plan. b. Timber. On a limited and localized basis, Grantor may cut or prune trees, shrubs and other vegetation on the Property to control insects and disease, to control invasive non-native species, to prevent personal injury and Property damage. Grantor may conduct tree thinning activities to mitigate forest fires, and to maintain a healthy ecosystem on the Property in accordance with the Management Plan. Commercial logging is prohibited. Large-scale alteration or removal of native trees, shrubs and other vegetation from the Property may only occur upon agreement of the Parties. Re-vegetation of the Property including planting of shrubs and trees is permitted in a manner consistent with the Purpose. c. Recreation. Grantor may undertake, or permit members of the public to undertake passive,non-motorized recreation on the Property, including,but not limited to, wildlife watching,hiking,biking, and hunting in accordance with the 8 regulations as set forth by the Colorado Division of Parks and Wildlife, and snowshoeing and cross-country skiing, provided they are undertaken in accordance with the Management Plan. Notwithstanding the foregoing, Grantor may allow motorized access in the manner otherwise permitted in Section 5 and Section 6.a of this Deed. d. Weeds. The Parties recognize the potential negative impact of noxious weeds and invasive plant species on the Conservation Values. Grantor shall manage noxious weeds and invasive plant species in accordance with the Management Plan. Grantee has no responsibility for the management of noxious weeds and invasive plant species. e. Water Rights. No water rights are encumbered by this Easement. f. Special Events. Grantor also reserves the right to conduct special events on the Property,provided such special events are approved by Grantee as part of the Management Plan or are otherwise approved by Grantee pursuant to Sections 17 (Grantor's Notice) and 18 (Grantee's Approval) of this Deed, and provided Grantor conducts such special events in a manner that minimizes damage to the Conservation Values and promptly and diligently re-vegetates any disturbed areas with native seed and/or vegetation. g. Public Access. Nothing contained herein shall be construed as affording the public access to any portion of the Property. The Parties acknowledge that Grantor reserves the right to permit public access to the Property, in accordance with the Management Plan, for use by the public for purposes permitted by this Deed. 7. Restricted Practices. a. Subdivision. Grantor and Grantee agree that the division, subdivision or de facto subdivision of the entire Property, whether by legal or physical process, into two or more parcels of land or partial or separate interests (including,but not limited to, condominium interests or the partition of undivided interests) is prohibited. At all times Grantor shall own and convey the Property as a single parcel which shall be subject to the terms and conditions of this Deed. Grantor may own the Property by joint tenancy or tenancy in common; provided, however,that Grantor shall not undertake any legal proceeding to partition, subdivide or divide in any manner such undivided interests in the Property. 9 b. Surface Disturbance. Except as otherwise permitted by this Deed, Grantor shall not alter the surface of the land, including without limitation,moving, excavating or removing soil, sand, gravel,rock,peat or sod,unless such alteration is associated with permitted acts on and uses of the Property and is consistent with the Purpose. c. Commercial or Industrial Activity. Grantor shall not conduct industrial uses of the Property. Grantor may conduct commercial uses on the Property with Grantee's approval pursuant to Sections 17 (Grantor's Notice) and 18 (Grantee's Approval) of this Deed. d. Feed Lot. Grantor shall not establish or maintain a feed lot. For purposes of this Deed, "feed lot"means a permanently constructed confined area or facility which is used and maintained continuously and exclusively for purposes of warm-up or fattening large numbers of livestock for market. e. Trash. Grantor may not allow the dumping or accumulation any kind of trash, sludge, or refuse on the Property, except for trash contained within wildlife resistant trash containers. f. Hazardous Materials. Grantor may use agri-chemicals on the Property in accordance with all applicable federal, state or local laws. Otherwise, the treatment,permanent storage, disposal or release of hazardous materials on, from or under the Property is prohibited. For the purposes stated herein,hazardous materials shall mean any hazardous or toxic material or waste that is subject to any federal, state, or local law or regulation. Notwithstanding anything in this Deed to the contrary, this prohibition does not impose any liability on Grantee for hazardous materials,nor does it make Grantee an owner of the Property,nor does it permit or require Grantee to control any use of the Property that may result in the treatment, storage, disposal or release of hazardous materials within the meaning of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"). g. Easements,Rights of Way or Other Interests. Except as otherwise permitted in this Deed, the conveyance or modification of an easement, right of way, or other similar interest is prohibited without Grantee's approval pursuant to Sections 17 (Grantor Notice) and 18 (Grantee's Approval) of this Deed. h. Other Restricted Uses. Grantor shall not construct or establish golf courses, sod farms, athletic fields, shooting ranges, helicopter pads, and airstrips. 10 Telecommunications Facilities. Grantor shall not erect, construct, install, relocate, or use a communication facility, telecommunication facility,network element, telecommunication equipment, or any other equipment or material that may be used for telecommunications or to provide telecommunication services (as such terms are defined in The Federal Telecommunications Act of 1996), without Grantee's approval pursuant to Sections 17 (Grantor Notice) and 18 (Grantee's Approval) of this Deed. j. Wildfire. In the event of a wildfire, any and all methods of extinguishing the fire are permissible. Also, in the event of a wildfire, the Property is available for staging of fire activities and camping for firefighters depending on the severity of an event. k. Mining. (1) The exploration, mining, or extraction of minerals, oil, gas, or other hydrocarbons, soils, sands, gravel, rock, or other materials ("Minerals") on or below the surface of the Property by Grantor is prohibited. Grantor, its heirs, successors, transferees or assigns shall not transfer, lease or otherwise separate the soil, sand, gravel,rock, oil,natural gas, fuel or any other mineral substance from the Property. A mineral assessment report was completed by Rare Earth Science, LLC dated July 8, 2016. The report concludes that, as of the date of the report, the probability of extraction or removal of minerals from the Property by any surface mining method is so remote as to be negligible. (1) Notwithstanding any of the foregoing to the contrary, soil, sand, gravel or rock may be extracted upon written notice to but without further permission from Grantee, so long as such extraction is solely for use on the Property for non-commercial purposes, (i) is in conjunction with activities permitted herein, (ii) is accomplished in a manner which is consistent with the Purpose of this Easement, and(iii) does not substantially diminish or impair the Conservation Values. Any such extraction shall be limited to an area less than one-tenth acre in size at any given time. Any area which is disturbed by extraction must be re-vegetated and restored to a natural condition promptly after completion of extraction. (2) For purposes stated herein the term"Mineral Document" shall mean any lease, surface use agreement,no-surface occupancy agreement, or any other instrument related to Minerals associated with the Property, and the provisions of which may permit activities that may have a current or future impact on the surface of the Property. To the extent Grantor does not own all of 11 the Minerals located on,under, or in the Property or otherwise associated with the Property the following shall apply: (i) Grantor agrees that by granting this Easement to Grantee, it has granted to Grantee a portion of its rights as owner of the Property on which the exploration, development,mining, extraction, or removal of any Minerals may be conducted. Grantor shall provide notice to Grantee within ten(10) days of any contact,whether verbal or written, from a third party Mineral owner, lessee or operator. (ii) Grantor shall not enter into any Mineral Document without notice to (Section 17) and Grantee's Approval pursuant to Section 18 of this Deed to ensure that said document is consistent with the Purpose and this Deed, and Grantee shall be a party to any such agreement, if Grantee chooses, in its sole discretion. (iii) Grantor affirmatively grants to Grantee the right, but not the obligation, to object to, on Grantor's behalf, any administrative application,permit or other regulatory approval to be granted by and federal, state or local government body or agency, including any permit conditions in accordance with state law and regulations, and Grantor shall not grant its approval or acceptance of any such application,permit, permit conditions or other regulatory approval without notice to (Section 17) and Grantee's Approval pursuant to Section 18 of this Deed. 8. Responsibilities of Grantor and Grantee Not Affected. Other than as specified herein, this Deed is not intended to impose any legal or other responsibility on Grantee, or in any way to affect any existing rights or obligations of Grantor as owner of the Property. Additionally,unless otherwise specified below,nothing in this Deed shall require Grantor to take any action to restore the condition of the Property after any Act of God or other event over which Grantor had no control,provided, however,that Grantee shall have the right to bring an action at law or in equity for trespass or any other appropriate cause of action against any third party who violates the terms of this Deed. Grantor shall continue to be solely responsible and Grantee shall have no obligation for the upkeep and maintenance of the Property and Grantor understands that nothing in this Deed relieves Grantor of any obligation or restriction on the use of the Property imposed by law. Among other things, this shall apply to: a. Taxes. Grantor is a tax-exempt entity. However, if Grantor or the Property ever become subject to real or personal property taxes or assessments levied against the Property, Grantor shall be solely responsible for payment of all taxes and 12 assessments levied against the Property. If Grantee is ever required to pay any taxes or assessments on its interest in the Property, Grantor will reimburse Grantee for the same. If for any reason Grantor fails to pay any taxes, assessments or similar requisite charges, Grantee may pay such taxes, assessments or similar requisite charges, and may bring an action against Grantor to recover all such taxes, assessments and similar charges plus interest thereon at the rate charged delinquent Property taxes by the county treasurer's office in which the Property is located. b. No Liability. Grantee shall not be liable for injury or damages occurring on, or arising from, the Property unless due solely to the gross negligence or intentional acts of the Grantee. Liability of Grantor and Grantee, if any, shall not exceed an amount equal to any limit forth in the Colorado Governmental Immunity Act now existing or as may hereafter be amended. Grantor does not waive or intend to waive the limitations on liability which are provided to it under the Colorado Governmental Immunity Act, C.R.S. § 24-10-101 et seq. nor to confer any rights or benefits on any person or activity not a party to this Agreement. Grantor agrees to obtain and maintain at all times, commercial general liability insurance consistent with the limits set forth in the Governmental Immunity Act, naming Grantee as an additional insured. Grantor shall provide proof of such insurance at any time requested by Grantee. 9. Enforcement. a. General Provisions. Grantee shall have the right to prevent and correct or require correction of violations of the terms of this Deed. If Grantee determines that immediate entry is required to inspect for,prevent, terminate, or mitigate a violation of the terms of this Deed, Grantee may enter the Property without advance notice. If such entry occurs, Grantee shall notify Grantor within a reasonable time thereafter. If Grantee determines that a violation has occurred, Grantee shall notify Grantor, of the nature of the alleged violation in writing. Upon receipt of said notice, Grantor shall immediately cease the alleged violation and within thirty(30) days either(i) if necessary,provide a written plan for restoration and remediation of the Property and, once approved by Grantee, restore or remediate the Property in accordance with the plan; or(ii)provide written documentation demonstrating that the activity is permitted and is not a violation. Grantee's acceptance of Grantor's actions under(i) or(ii) above shall be in Grantee's sole discretion, and shall be confirmed by Grantee in writing. If Grantor is unable or unwilling to immediately cease the alleged violation, and comply with(i) or(ii) above, the Parties agree to resolve the dispute through mediation as set in forth in Section 32 or judicial process. At any point in time, 13 Grantee may take appropriate legal action, including seeking an injunction, to stop the alleged violation. b. Costs of Enforcement. Any costs incurred by Grantee in enforcing the terms of this Deed against Grantor, including,without limitation, costs and expenses of suit, and attorneys' fees necessitated by Grantor's violation of the terms of this Deed, shall be borne by Grantor. If the deciding body determines that Grantor is the prevailing party on all claims in any court action to enforce the terms of this Deed, the Parties shall each be responsible for their own costs and attorney fees. The foregoing two sentences are subject to the following: Any costs of restoration necessitated by Grantor's violation of the terms of this Deed, shall be borne by Grantor. ii. If an action is brought to enforce the final decision of the mediator that was agreed to by the Parties,then the prevailing Party shall be entitled to payment from the non-prevailing Party of its costs incurred in enforcing the terms of the final decision, including, without limitation, its costs and expenses of suit, and attorneys' fees. c. Grantee's Discretion. Grantee's remedies described in this Section 9 shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including the right to recover any damages for loss of Conservation Values as described in C.R.S. § 38-30.5-108. The failure of Grantee to discover a violation or to take action shall not waive any of Grantee's rights, claims or interests in pursuing any such action at a later date. 10. Transfer of Easement. a. Grantee shall have the right to transfer this Easement to any public agency or private non-profit organization that, at the time of transfer: (i) is a "qualified organization"under I.R.C. § 170(h); (ii) is authorized to hold conservation easements under C.R.S. §§38-30.5-101, et seq. and C.R.S. §12-61-720, (iii) expressly agrees in writing to abide by the terms of this Deed and to assume the responsibility imposed on Grantee by this Deed; and(iv)is approved in writing by Grantor such approval not to be unreasonably withheld. Grantee shall provide Grantor with a written request to assign this Deed at least forty-five(45) days prior to the date proposed for the assignment transaction. 14 b. If Grantee ever ceases to exist or no longer qualifies under federal and state law to hold conservation easement interests, or if Grantee desires to transfer this Deed to a qualified organization having similar purposes as Grantee,but Grantor has refused to approve the transfer, a court with jurisdiction shall transfer this Deed to another qualified organization having similar purposes and that agrees to abide by the terms of this Deed and to assume the responsibility imposed on Grantee by this Deed,provided that Grantor shall have adequate notice of and an opportunity to participate in the court proceeding leading to the court's decision on the matter. c. Upon compliance with the applicable portions of this Section 10, the parties shall record an instrument completing the assignment in the Eagle County Clerk and Recorder's Office. Assignment of this Easement shall not be construed as affecting this Easement's perpetual duration and shall not affect this Easement's priority against any intervening liens, mortgages, easements, or other encumbrances. 11. Transfer of Property. a. Any time the Property or a portion thereof is transferred by Grantor to any third party, Grantor shall pay a transfer fee of$500 to Grantee to be used for purposes consistent with the Conservation Values, except that such transfer fee shall not apply to any transfer by the original Grantor to a successor. Grantor agrees to incorporate the terms of this Deed by reference in any deed or other legal instrument by which it divests itself of any interest in all or a portion of the Property, including,without limitation, a leasehold interest. Grantor shall notify Grantee in writing forty-five(45) business days prior to the transfer of the Property, after closing using the form in Exhibit D attached hereto and made a part of this Deed, in order to accommodate the prior approval required by Section 11.B below. Within five(5)business days after the transfer of the Property, Grantor shall provide Grantee with a copy of the new ownership deed. Grantee reserves the right to record a notice of transfer fee in the official real property records of Eagle County, Colorado. This provision is intended to run with the land for perpetuity, and to touch and concern the Property burdened by this Easement by providing Grantee a contribution toward its stewardship, enforcement and defense of this Easement. If a fee is attributable to a transfer of property classified as "residential real property," as defined in C.R.S. § 38-35-127(2)(e), then the Grantee covenants and agrees that the fee shall be used for the purposes specified in C.R.S. § 38-35-127(2)(b)(V) in a manner consistent with the Grantee's open space mission. 15 b. County provided funding through its Open Space Program for Grantor's acquisition of fee title to the Property above and beyond this Deed; therefore, any voluntary sale, conveyance, transfer or disposal of all or any portion of the Grantor's interest in the Property("Sale")to a third party, shall require prior written approval from Grantee and may require a refund to Grantee of its contribution toward the original purchase price for the Property, Grantee may determine in its sole discretion, in addition to any payment that Grantee may be entitled to receive under Section 14 concerning condemnation. Notwithstanding any provision of this Deed to the contrary, in the event of any condemnation of the fee title, the requirements of this section shall continue to apply. 12. Real Property Interest. The granting of this Deed immediately vests Grantee with a property interest. Grantor and Grantee agree that this property interest is seventy five percent(75%)of the full fair market value of the Property(the "Proceeds Percentage"). Grantor and Grantee further agree that this percentage shall remain constant. 13. Termination of Easement. This Easement may only be terminated or extinguished by judicial proceedings by a court of competent jurisdiction. The total loss of all the Conservation Values on the Property is the only grounds under which this Easement can be terminated. If this Easement is extinguished or terminated,whether in whole or in part, Grantee shall be paid proceeds equal to the Proceeds Percentage multiplied by the fair market value of the Property. Grantee's use of the proceeds shall be used in a manner consistent with its conservation purpose within Eagle County and in compliance with and as approved by the Eagle County Open Space Program. 14. Condemnation. Grantor shall notify Grantee immediately of any communication or notice received concerning any proposed taking under the power of eminent domain by public, corporate, quasi-governmental or other authority, or acquisition by such authority through purchase in lieu of the exercise of eminent domain ("Condemnation") affecting the Property, and Grantee shall have the right to participate in any proceedings as a real property interest holder. Grantee may pursue any remedies in law or equity, including opposition to the Condemnation of the Property. If all or any part of the Property is taken by Condemnation, Grantee shall receive proceeds directly from the authority for any such Condemnation equal to the Proceeds Percentage multiplied by the total proceeds received by Grantor. Grantee's use of the proceeds shall be used in a manner consistent with its conservation purpose within Eagle County and in compliance with and as approved by the Eagle County Open Space Program. 16 15. Perpetual Duration. This Easement shall be a servitude running with the land in perpetuity. The provisions of this Deed that apply to Grantor or Grantee shall also apply to their respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may appear;provided, however,that each party's rights and obligations under this Easement shall terminate(as to such party,but not as to such party's successor,who shall be bound as provided herein)upon a transfer of the party's entire interest in this Easement or the Property, except that liability of such transferring party for acts or omissions occurring prior to such transfer shall survive the transfer. 16. Change of Circumstance. Grantor has considered that acts or uses restricted or prohibited by this Deed may become more economically valuable than the permitted uses and acts. It is the intent of both Grantor and Grantee that such circumstances shall not justify the termination or extinguishment of this Easement pursuant to Section 13. In addition, the inability to carry on any or all of the permitted uses, or the unprofitability of doing so, shall not impair the validity of this Easement or be considered grounds for its termination or extinguishment pursuant to Section 13. 17. Grantor's Notice. Where Grantor's notice is required in this Deed, Grantor shall notify Grantee in writing not less than thirty(30) calendar days prior to the date Grantor intends to undertake the activity in question. The written notice shall describe the proposed activity in sufficient detail(i.e. location, size, scope, design, nature)to allow Grantee to evaluate the consistency of the proposed activity with the pertinent terms of this Deed. 18. Grantee's Approval. Where Grantee's approval is required in this Deed, Grantee shall grant or withhold its approval in writing within thirty(30)calendar days of receipt of Grantor's written notice thereof which must comply with Section 17. As part of its determination, Grantee shall consider the proposed manner in which the proposed activity will be conducted, whether it complies with the terms of this Deed, and the likely impact on the Conservation Values. Grantee's approval may be withheld only if Grantee reasonably determines that there is a significant risk that the activity as proposed is not consistent with the Purpose. Grantee may condition its approval on Grantor's acceptance of modifications,which Grantee reasonably determines makes the proposed activity consistent with the Purpose. Grantee may request additional information from Grantor during the thirty(30) day period, and Grantee shall then have an additional thirty(30) days from the receipt of such additional information to approve or deny Grantor's request in writing. If Grantee does not respond to Grantor's written request within thirty(30) calendar days of receipt, the request shall be deemed denied,provided however, that if after expiration of the 30-day period, Grantor submits a second written request, and Grantee does not respond within thirty(30)calendar days of receipt of Grantor's second request, Grantor's request shall be deemed approved. Grantor shall not engage in the 17 proposed act or use until Grantor receives Grantee's approval in writing(or unless Grantee fails to respond within thirty(30)calendar days after receipt of Grantor's second request). If Grantor disagrees with the decision of Grantee, Grantor may appeal the decision through the mediation process set forth in Section 31. 19. Notices. Any notice that either party is required to give to the other in writing shall be transmitted via(i)hand delivery, (ii)U.S. mail, (iii) overnight delivery service that provides proof of delivery, or(iv) any other delivery service mutually agreed to by the Parties in writing,to the following addresses, which addresses may change from time to time by a party giving written notice in the manner set forth above: Grantor: Town of Gypsum P.O. Box 130 Gypsum, CO 80137 Phone: Fax: Grantee: The Board of County Commissioners of Eagle County P.O. Box 850 500 Broadway Eagle, Colorado 81631 Phone: 970-328-8605 Fax: 970-328-8629 With a copy to: Eagle County Open Space P.O. Box 179 500 Broadway Eagle, Colorado 81631 Phone: 970-328-8698 Fax: 970-328-7185 Eagle County Attorney P.O. Box 850 500 Broadway Eagle, Colorado 81631 Phone: 970-328-8685 Fax: 970-328-8699 18 20. Liens on the Property. No provisions of this Deed should be construed as impairing the ability of Grantor to use this Property as collateral for subsequent borrowing. Any mortgage or lien arising from such a borrowing is subordinate to this Deed. 20. No Merger. Unless the Parties expressly state that they intend a merger of estates or interests to occur,then no merger shall be deemed to have occurred hereunder or under any document executed in the future affecting this Easement. 21. Grantor's Representations and Warranties. a. Grantor warrants that Grantor has good and sufficient title to the Property, free from all liens and encumbrances except ad valorem property taxes for the current year, Third-Party Rights and other interests of record. b. Grantor represents and warrants: i. At the time of executing this Deed, no hazardous substance or toxic waste is currently being treated, stored,used, disposed of, deposited, or transported, in, on, or across the Property by Grantor, and Grantor is not aware of any underground storage tanks located on the Property; ii. At the time of executing this Deed,the Property is in compliance with all federal, state, and local laws,regulations, and requirements applicable to the Property and its proposed use as open space; iii. At the time of executing this Deed, there is no pending or threatened litigation relating to the Property; and iv. At the time of executing this Deed,no investigations or proceedings are now pending, and no notices, claims, demands, or orders have been received, arising out of any violation or alleged violation of, or failure to comply with, any federal, state, or local law, regulation, or requirement applicable to the Property or its use. 22. Acceptance. Grantee hereby accepts without reservation the rights and responsibilities conveyed by this Deed. 23. General Provisions: a. Severability. If any provision of this Deed, or the application thereof to any person or circumstance, is found to be invalid, the remainder of the provisions of 19 this Deed, or the application of such provision to persons or circumstances other than those as to which it is found to be invalid, as the case may be, shall not be affected thereby. b. Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation. c. Waiver of Defenses. Grantor hereby waives any defense of laches, estoppel or prescription and acknowledges and agrees that the one-year statute of limitation provided under C.R.S. § 38-41-119 does not apply to this Deed, and Grantor waives any rights of Grantor pursuant to such statute. d. Controlling Law and Interpretation. This Deed shall be performed and broadly interpreted under the laws of State of Colorado,resolving any ambiguities and questions of the validity of specific provisions in favor of maintaining the Purpose of this Deed. Any decisions resolving such ambiguities shall be documented in writing. e. Counterparts. The parties may execute this instrument in two or more counterparts which shall, in the aggregate,be signed by all Parties; each counterpart shall be deemed an original instrument as against any party who has signed it; all counterparts, when taken together, shall constitute this instrument. f. Amendment. If circumstances arise under which an amendment to or modification of this Deed would be appropriate, Grantor and Grantee are free to jointly amend this Deed;provided that no amendment shall be allowed that will confer a private benefit to Grantor or any other individual greater than the benefit to the general public or result in private inurement for a Board member, staff or contract employee of Grantee, or affect the qualifications of this Deed under any applicable laws. Any amendment shall be consistent with Grantee's policies, must have neutral or beneficial effect on the Property's Conservation Values, as determined by Grantee in its sole discretion, must be consistent with the Purpose, shall not affect the perpetual duration of this Easement. Grantor shall pay any and all costs, including staff time and attorney's fees associated with any amendment proposed by Grantor; provided that Grantee first provides Grantor with an estimate of such fee. Any amendment must be in writing, signed by both Parties, and recorded in the official records of Eagle County, Colorado. 20 g. Entire Agreement. This instrument sets forth the entire agreement of the Parties with respect to the terms of this Easement and supersedes all prior discussions, negotiations,understandings, or agreements relating to the terms of this Easement, all of which are merged herein. 24. Development Rights. Grantor herby grants to Grantee all development rights except as specifically reserved herein, and the Parties agree that such rights are terminated and extinguished unless reserved herein. 25. Recording. Grantor shall record this Deed in a timely fashion in the official real Property records of Eagle County, Colorado, and Grantee may re-record it at any time as may be required to preserve its rights in this Easement. 26. No Third Party Enforcement. This Deed is entered into by and between Grantor and Grantee and does not create rights or responsibilities for the enforcement of the terms of this Deed in any third parties except as expressly reserved herein. 27. Joint and Several Liability. If Grantor at any time owns the Property in joint tenancy or tenancy in common, Grantor shall be jointly and severally liable for all obligations set forth in this Deed. 28. Ownership by Single Entity Consisting of Multiple Parties. If Grantor at any time is an entity which consists of shareholders,partners or members, such Grantor entity is required to include in its operating agreement,bylaws or other documents setting forth the rights and responsibilities of the entity, the right to assess or to otherwise collect payment from such shareholders,partners or members for any monetary or other obligations set forth in this Deed. Grantor shall provide a copy of such documentation at any time upon Grantee's request. 29. Environmental Attributes. Grantor hereby reserves all Environmental Attributes associated with the Property. `Environmental Attributes" shall mean any and all tax or other credits,benefits,renewable energy certificates, emissions reductions, offsets, and allowances (including but not limited to water,riparian, greenhouse gas,beneficial use, and renewable energy), generated from or attributable to the conservation,preservation and management of the Property in accordance with this Deed.Nothing in this Section 29 shall modify the restrictions imposed by this Deed or otherwise impair the preservation and protection of the Conservation Values. 30. Annual Appropriation. To the extent that any financial obligation of this Deed is subject to the multiple fiscal year obligations as set forth in Article 10 of the Colorado 21 Constitution or C.R.S. § 29-1-110, such obligation may be subject to annual appropriation by Grantor. The foregoing is not an agreement or an acknowledgement by either Grantor or Grantee that any financial obligation which could arise pursuant to this Deed would be subject to the requirement that funds for such financial obligation must be appropriated by Grantor. Nothing in this Deed shall be deemed to be a waiver of any rights that Grantee may have pursuant to C.R.S. § 13-60-101. Nothing in this Section 30 shall prevent Grantee from enforcing this Deed in accordance with its terms, despite a failure by Grantor to appropriate funds. 31. Mediation of Disputes. If Grantee or Grantor has an enforcement dispute as set forth in Section 9 of this Deed, or if Grantee denies a request by Grantor for approval pursuant to Section 18 of this Deed, Grantor may appeal Grantee's decision by requesting mediation with Grantee in a written notice to Grantee. Within ten(10)working days of the receipt of such request, the Parties shall select a single, trained, and impartial mediator with experience in conservation easements and other land preservation tools. Mediation shall then proceed in accordance with the following guidelines: a. Purpose. The purpose of the mediation is to: (i)promote discussion between the Parties; (ii) assist the Parties to develop and exchange pertinent information concerning the issues in dispute; and(iii) assist the Parties to develop proposals which will enable them to arrive at a mutually acceptable resolution of the controversy. The mediation is not intended to result in any express or de facto modification or amendment of the terms, conditions, or restrictions of this Easement. b. Participation. The Parties agree that they will participate in the mediation process in good faith and expeditiously, attending all sessions scheduled by the mediator. Representatives of the Parties with settlement authority will attend mediation sessions as required by the mediator. c. Confidentiality. All information presented to the mediator shall be deemed confidential and shall be disclosed by the mediator only with the consent of the Parties or their respective counsel. The mediator shall not be subject to subpoena by any Party. No statements made or documents prepared for mediation sessions shall be disclosed in any subsequent proceedings or construed as an admission of a Party in accordance with Colorado Rules of Evidence, Rule 408. d. Time Period. Neither Party shall be obligated to continue the mediation process beyond a period of sixty(60) days from the date of receipt of the initial request or 22 if the mediator concludes that there is no reasonable likelihood that continuing mediation will result in a mutually agreeable resolution of the dispute. e. Costs of Mediation. Grantor shall pay all of Grantee's expenses associated with the mediation, including attorneys' fees and consultant fees, except that Grantor and Grantee shall share the cost of the mediator. 32. Force Majeure. Grantor shall not be obligated to send any prior notice to Grantee, and Grantee shall not be entitled to bring any action against Grantor,with respect to any prudent, good faith activity undertaken by Grantor to prevent, abate, or mitigate injury to the Property immediately before, during, or immediately following fire, flood, storm, earth movement, acts of war, and similar causes beyond the control of Grantor. Grantor will promptly inform Grantee of injury to the Property caused by such events or actions. TO HAVE AND TO HOLD,this Deed of Conservation Easement unto Grantee, its successors and assigns, forever. [SIGNATURE PAGES TO FOLLOW] 23 IN WITNESS WHEREOF, Grantor and Grantee, intending to legally bind themselves, have set their hands on the date first written above. GRANTOR: TOWN OF GYPSUM, COLORADO by and through its Town Council By: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of , 2016,by as Town of Gypsum, Colorado. Witness my hand and official seal. My commission expires: Notary Public 24 GRANTEE: EAGLE COUNTY, COLORADO by and through its Board of County Commissioners By: Jeanne McQueeney, Chair STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of , 2016, by Jeanne McQueeney, Chair of Eagle County Board of County Commissioners. Witness my hand and official seal. My commission expires: Notary Public 25 EXHIBIT A Legal Descriptions of the Land Comprising the Property 26 EXHIBIT B Maps of the Land Comprising the Property 27 EXHIBIT C Sample Notice of Transfer of Property To: Eagle County, Colorado ("Grantee") From: [Insert name of fee owner] ("Grantor") Pursuant to Section 11 of the Deed of Conservation Easement recorded (date) under reception number , Grantee is hereby notified by Grantor of the proposed transfer of the fee simple interest in the subject Property legally described in Exhibit A attached hereto effective [insert date of closing] to [insert name of new Grantor], who can be reached at [insert name,legal address,phone and fax number]. GRANTOR: By: Title: STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20_, by as of Witness my hand and official seal. My commission expires: Notary Public Date: 28 RESTRICTIVE COVENANT THIS RESTRICTIVE COVENANT (this"Covenant") is entered into as of the day of , 2016 by Eagle County, Colorado, a body corporate and politic("County" or "Eagle") and the Town of Gypsum, a home rule municipal corporation of the State of Colorado organized pursuant to Article XX of the Colorado Constitution and Town's Home Rule Charter effective October 31, 1982 ("Gypsum"or"Town"). County and Town shall hereinafter sometimes be referred to individually as a"Party" and collectively as the"Parties". RECITALS A. Gypsum is the owner of that certain parcel of land, totaling approximately 275.41 acres, located in the County of Eagle, State of Colorado that is legally described in Exhibit A and depicted in Exhibit B,both of which are attached hereto and incorporated herein by reference (hereinafter the"Property"). B. County agreed to contribute to the purchase of the Property, with approximately 117.74 acres of the Property permanently preserved by conservation easement recorded in the Office of the Eagle County Clerk and Recorder on , at Reception Number (the"Conservation Property"). C. In connection with the conservation of the Conservation Property, Gypsum agrees, by this Covenant,to restrict the uses that may occur on that portion of the Property legally described in Exhibit C, and depicted in Exhibit D,both of which are attached hereto and incorporated herein by reference,totaling approximately 157.67 acres(the"Covenant Property"). The Covenant Property shall not be considered Open Space Land or part of Eagle County's Open Space Program. D. In connection with the conveyance of the Property and County's contribution to the same, Gypsum agrees to restrict the Covenant Property as set forth below. COVENANT NOW,THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Gypsum makes the following acknowledgements and covenants for the benefit of County and its successors and assigns: 1. OPEN TO THE PUBLIC. Gypsum shall ensure that the Covenant Property shall be open to the public subject to the establishment of reasonable rules and regulations pertaining to use,reasonable hours of operation, seasonal or other necessary closures which may include, but not be limited to, temporary closures resulting from damage, destruction, maintenance or improvement to the Covenant Property. In the event Gypsum determines that a change in applicable federal or state law or other conditions makes on-going compliance with the covenant set forth in this paragraph 1 impractical or impossible, then the Parties shall meet and make good faith efforts to address and identify mutually acceptable modifications to this paragraph with the objective of keeping the Covenant Property open and available to the public. 2. LAND MANAGEMENT. a. Gypsum recognizes the importance of good resource manage and stewardship and shall employ good land management techniques in its management and operation of the Covenant Property which may include but not be limited to seasonal closures for wildlife and noxious weed control on the Covenant Property. b. Management Plan. County and Gypsum have prepared and mutually agreed to a land management plan(the"Management Plan"or the"Plan")that shall provide guidelines for the use of the Covenant Property. The Covenant Property shall be used, operated and managed in accordance with the management issues addressed in the Management Plan or as otherwise set forth in this Covenant. If Gypsum intends to undertake any activities not expressly permitted or addressed in a current Management Plan, Gypsum shall not undertake such activities until Gypsum has first prepared an amended Management Plan. The Plan shall be amended if determined necessary by either Party. Any amendment to the Management Plan shall be approved by County in writing. The Management Plan shall provide that County shall have no responsibility for management or other expenses related to the Covenant Property. c. Advisory Management Committee. Gypsum shall create an advisory management committee for the purpose of making recommendations to the Town in accordance with the guidelines and policies expressed in the Management Plan in order to ensure sound management and use of the Covenant Property. Such committee will generally be comprised of representatives from the Town, County,user groups, Colorado Parks and Wildlife and the Bureau of Land Management. 3. SUBDIVISION AND DEVELOPMENT RESTRICTED. County and Gypsum agree that the division, subdivision or de facto subdivision of the Property, whether by legal or physical process, into two or more parcels of land or partial or separate interests (including,but not limited to, condominium interests or the partition of undivided interests) is prohibited. Ownership of the Property shall remain as a single parcel,with the Covenant Property being subject to this Covenant. The construction or location of any New Improvements(defined below) on the Covenant Property is prohibited, except as set forth in paragraph 3b below. a. Existing Improvements. There are currently no existing improvements on the Covenant Property except for five storage buildings and a shade shelter. The property is bisected by Trail Gulch Road, which is a County maintained road. There is an existing driveway which connects Trail Gulch Road to the area where these structures are located. b.New Improvements. 2 i. No development, installation or placement of any temporary or permanent buildings, structures or mobile homes("New Improvements") is permitted on the Covenant Property except that Gypsum may allow the construction,placement or installation of restrooms, structures, or buildings to be used in connection with permitted recreational uses allowed by this Covenant and addressed in the Management Plan,which New Improvements,when taken together shall not exceed a total of five thousand(5,000) square feet The allowed New Improvements may not be used for residential purposes other than for seasonal care taker facilities and construction and use of all such New Improvements shall comply with the Eagle County Land Use Regulations. ii. Road Construction, Trails, Motorized Paths and Paving. Gypsum may place,maintain, restore and replace roads, trails and motorized paths within the Covenant Property. Construction of additional paved or unpaved roads are permitted, subject to County approval and issuance of any necessary permits or land use approvals required under the Eagle County Land Use Regulations. Construction of new or additional and motorized recreational paths, including berms and jumps are permitted subject to the requirements of the Management Plan. iii. Fences. Gypsum may maintain,repair, replace or remove existing fences. Gypsum may construct, maintain,repair and replace new fences anywhere on the Covenant Property,provided the location and design of such replacement or new fences are wildlife friendly and approved by the Advisory Management Committee. iv. Utility Improvements. Gypsum may maintain,repair or replace existing utilities on the Covenant Property including(a) electric power poles, transformers and power lines; and(b) telephone and communications towers,poles and lines; and(iii)gas lines; and(iv) sewer, septic and waste water facilities on the Covenant Property. Gypsum may install new utilities on the Covenant Property, including(a) electric power poles, transformers and power lines; and(b)telephone and communications towers,poles and lines; and(iii) gas lines; and(iv) sewer, septic and waste water facilities and(v) renewable energy generating systems such as wind, solar, geothermal or hydroelectric, only with approval of the Town, the Advisory Management Committee and the County, and where applicable, with amendment to the Management Plan. Any area of the Covenant Property disturbed by maintenance, repair or replacement of the utilities shall be revegetated and restored to a condition similar to that existing prior to the disturbance. v. Signs. Gypsum may place, maintain, restore and replace, interpretive and directional signs on the Covenant Property as well as signage recognizing the funders and participants in the acquisition of the Covenant Property. Any sign larger than 24 square feet shall be approved,prior to its installation,by the Advisory Management Committee. 3 vi. Recreational Trails. Gypsum may construct recreational trails on the Covenant Property in accordance with the Management Plan, which shall set forth general guidelines for the use and maintenance of such trails. vii. Motorized Track. Gypsum may construct a motocross track and related amenities on the Covenant Property that are consistent with the restrictions contained in this Covenant and in accordance with the requirements of the Management Plan. County shall be entitled to review and approve the form of lease or other agreement and any amendment thereto between any group that may enter into an agreement with the Town for use and management of all or a portion of the Covenant Property. 4. OTHER PROHIBITED USES i. Town shall not establish or maintain a feed lot on the Covenant Property. For purposes of this Covenant, "feed lot"means a permanently constructed confined area or facility which is used and maintained continuously and exclusively for purposes of warm up or fattening large numbers of livestock on the Covenant Property. ii. Except as specifically authorized herein, Town shall not engage in Industrial Operations, as defined in the Eagle County Land Use Regulations, on the Covenant Property without advance written approval of the County which may be withheld in County's sole discretion. This prohibition shall not apply to the repair of equipment necessary for the maintenance of the Covenant Property. iii. Town may use agri-chemicals on the Covenant Property in accordance with all applicable federal, state and local laws. The Town may also store, or allow the storage of, within enclosed preexisting storage structures or other allowed New Improvement structures on the Covenant Property,heavy equipment necessary for the maintenance of the Covenant Property, including necessary and related machinery fuels and fluids, and other repair items. Otherwise, the treatment,permanent storage, disposal or release of hazardous materials on, from or under the Covenant Property is prohibited. For the purpose of this Covenant, hazardous materials shall mean any hazardous or toxic material or waste that is subject to any federal, state or local law or regulation.Notwithstanding anything in this Covenant to the contrary, this prohibition does not impose any liability on County for hazardous materials,nor does it make County an owner of the Covenant Property iii. Except as expressly provided herein or in the Management Plan, no developed golf courses,ball or recreational fields, equestrian centers or similar non-dispersed recreation shall be permitted on the Covenant Property without advance written approval by the Advisory Management Committee and County. Such written approval may be withheld in County's sole discretion. iv. The exploration,mining, or extraction of minerals, oil, gas, or other 4 hydrocarbons, soils, sands, gravel, rock, or other materials ("Minerals") on or below the surface of the Covenant Property by Gypsum is prohibited on the Covenant Property without advance written approval by the Advisory Management Committee and County. Such written approval may be withheld in County's sole discretion d. Other uses. Any uses of the Covenant Property not involving or supporting dispersed recreation shall be approved in advance by the Advisory Management Committee and County in writing. Such written approval may be withheld in County's sole discretion. 5. SUBSEQUENT TRANSFERS OF THE PROPERTY. Gypsum agrees to notify any party who may purchase, lease, or otherwise hold an interest in the Property or the Covenant Property of the terms of this Covenant, and to provide a copy of the Covenant to such party if requested. The conveyance document shall expressly refer to this Covenant and acknowledge that all subsequent owners or holders of any subsequent interest in the Covenant Property are subject to its terms. The failure of Gypsum to perform any act required by this section shall not impair the validity of this Covenant. Further, Gypsum agrees to give written notice to County of the transfer of any interest in the Property at least forty-five(45)days prior to the date of such transfer. County provided funding through its Open Space Program toward Gypsum's acquisition of the Property; therefore any voluntary sale, conveyance, transfer, lease, or disposal of all or any portion of Gypsum's interest in the Property to a third party shall require prior written approval from County and may require a refund to the County of its contribution, as determined by County in its sole discretion.Notwithstanding any provision of this Covenant to the contrary, in the event of any condemnation of the fee title, the requirements of this section shall continue to apply. 6. CONDEMNATION. If any portion of Covenant Property is taken by condemnation, or by purchase in lieu of condemnation, Gypsum shall recover the full value of the interests in the Covenant Property subject to the taking or in-lieu purchase, and all damages resulting therefrom. Gypsum and County shall share the amount recovered such that County shall receive 92% of the amount recovered and Gypsum shall receive the balance. - 7. LAND USE APPROVALS.Nothing permitted by this Covenant constitutes approval by any government or regulatory agency for construction, development or land use; nor does any permit or approval granted by a government or regulatory agency override the terms of this Covenant. Gypsum shall be solely responsible for obtaining all necessary approvals for the lawful use of the Covenant Property. All improvements, reserved rights, structures or construction continues to be subject to separate review and approval under the Eagle County Land Use Regulations and nothing herein shall be considered to be pre-approval of any improvement,reserved right, subdivision,use, structure or construction on the Covenant Property. 5 8. ENFORCEMENT. The Parties acknowledge and agree that monetary damages would not be sufficient to compensate County, for any breach hereof by Gypsum or its successors and assigns. Should Gypsum or its successors, assigns or any occupant of the Covenant Property breach or threaten to breach the terms and covenants of this Covenant,then the County shall have the express right(but not the obligation)to enforce the provisions hereof and may exercise all rights and remedies, at law or in equity,to which it may be entitled on account of such breach, including without limitation, the right to an action for damages, specific performance of this Covenant and/or injunctive relief including obtaining a temporary restraining order. Any Party having the right to enforce this Covenant shall not be liable for failure to enforce it. 9. FURTHER ASSURANCES. The Parties hereto further agree to execute such other documents and instruments as are or may become necessary or convenient in order to effectuate and carry out the objectives of this Covenant. 10. NO WAIVER. The failure of any Party to require performance of any provision of this Covenant shall not be deemed a waiver of any rights or remedies that said Party may have, and shall not limit the Party's right to enforce the provision in the future. Waiver of any breach of any provision shall not be deemed a waiver of any succeeding breach of the provision or a waiver of the provision itself or any other provision. 11. NOTICE. Any notice required to be delivered hereunder shall be deemed to be delivered on the earlier of actual receipt or,whether actually received or not,when deposited in the United States mail,postage pre-paid, registered or certified mail, return receipt requested, addressed as follows: If to Gypsum: Town of Gypsum Jeff Shroll, Town Manager Post Office Box 130 Gypsum, CO 81637 Telephone: 970-524-7515 With copy to: Collins Cockrel Cole Attn: Kathryn G. Winn 390 Union Blvd. Suite 400 Denver, CO 80228-1556 Phone: 303-986-1551 Facsimile: 303-986-1755 Eagle County: Eagle County P.O. Box 850 Eagle County, CO 81631 Attn: Toby Sprunk, Open Space Director Phone: 970-328-8692 6 Facsimile: 970-328-8698 With a copy to: Eagle County Attorney's Office 500 Broadway P.O. Box 850 Eagle County, CO 81631 Attn: Bryan R. Treu Phone: 970-328-8685 Facsimile: 970-328-8699 The Parties hereto and their respective heirs, executors, administrators, successors and assigns may, from time to time and at any time, change their respective addresses. Any change properly made is effective twenty(20) days after the delivery of written notice to all other Parties to this Covenant in the manner provided herein. 12. SUBORDINATION. The Covenant Property is not subject to any mortgages or liens at the time of grant of this Covenant, and thus no subordination is necessary.No provisions of this Covenant shall be construed as impairing the ability of Gypsum to use the Covenant Property as collateral for subsequent borrowing,provided that any mortgage or lien arising from such borrowing shall be subordinate to this Covenant. 13. DRAFTING. The Parties acknowledge that this Covenant has been negotiated at arm's length and in good faith, and that each Party has been given the opportunity to be represented by independent legal counsel, and that this Covenant is the result of mutual agreement and negotiation, and shall not be deemed to have been drafted solely by any Party and the Parties hereby waive the benefit of any rule of contract interpretation or construction requiring that the same be construed against the drafting party in the event of ambiguity. 14. THIRD PARTY BENEFICIARIES. This Covenant is entered into for the sole benefit of the Parties, and no other parties are intended to be direct or indirect beneficiaries of its provisions and no third party shall have any rights in,under, or to this Covenant. 15. RUN WITH THE LAND. This Covenant and the terms, conditions and other provisions hereof shall be covenants that run with and bind the Covenant Property and shall be binding on Gypsum and its successors and assigns. This Covenant shall be recorded in the real property records of Eagle County, Colorado and shall be enforceable by County. The provisions of this Covenant shall be set forth or referenced in any lease or deed pertaining to the Property executed on or after the date hereof. 16. SEVERABILITY. Whenever possible, each provision of this Covenant shall be interpreted in such a manner as to be valid under applicable law;provided, however, if any provision of this Covenant shall be invalid or prohibited under applicable law, such provision 7 shall be ineffective to the extent of such invalidity or prohibition without invalidating the remaining provisions of this Covenant. 17. GOVERNING LAW. This Covenant is to be governed and construed in accordance with the laws of the State of Colorado. 18. COUNTERPARTS. This Covenant may be executed in several counterparts, each of which shall be fully effective as an original,but all of which together shall constitute one and the same instrument. 19. HEADINGS. Paragraph headings within this Covenant are inserted for convenience only and are not intended to and shall not govern, limit or aid in the construction of any terms or provisions contained in this Covenant. 20. MODIFICATION. The Parties agree that any modifications of this Covenant shall be effective only when made in writing signed by the Parties or their successors and assigns and recorded with the Clerk and Recorder of Eagle County, Colorado. 21. RULE AGAINST PERPETUITIES. The Parties intend that this Covenant and the covenants, duties, obligations,rights and remedies shall not be subject to the rule against perpetuities. 22. LIABILITY AND IMMUNITY. Town assumes all liabilities associated with the development and public use of the Covenant Property. Notwithstanding the foregoing,the Town and the County agree and understand that each is relying on and does not waive, by any provisions of this Agreement, the monetary limitations or terms or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. 24-10-101, et seq., as from time to time amended or otherwise available to each party or any of its officers, agents, or employees. 23. FORCE MAJEURE. Notwithstanding anything to the contrary stated herein, Town shall not be obligated to send any prior notice to County or the Advisory Management Committee, and County shall not be entitled to bring any action against Town, with respect to any prudent, good faith activity undertaken by Town to prevent, abate, or mitigate injury to the Property immediately before, during, or immediately following fire, flood, storm, earth movement, acts of war, and similar causes beyond the control of Town. Town will promptly inform County of injury to the Property caused by such events or actions. //Remainder of Page Intentionally Left Blank// 8 IN WITNESS WHEREOF,this Restrictive Covenant is hereby executed as of the date first written above. TOWN OF GYPSUM: Town of Gypsum, Colorado By: Jeff Shroll STATE OF COLORADO ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of 2016,by Jeff Shroll, Town Manager, Town of Gypsum, Colorado. Witness my hand and official seal. My commission expires: Notary Public EAGLE COUNTY: Eagle County, Colorado By and through its Board of County Commissioners By: Jeanne McQueeney, Chair STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of 2016,by Jeanne McQueeney, Chair, Eagle County Board of County Commissioners. Witness my hand and official seal. My commission expires: Notary Public 9 10 EXHIBIT A Legal Description of Entire Property 11 Exhibit B Map of Entire Property 12 Exhibit C Legal Description of Covenant Property 13 Exhibit D Map of Covenant Property 14