Attachment #1.

August 15"\ 2016

GarySuiter
City Manager
City of Steamboat Springs
PO Box 775088
Steamboat Springs, CO 80477

Re: Earnest Money Release ~ Iron Horse !nn - 331 & 333 S. Lincoln Avenue/ Steamboat Springs, CO

Dear Gary,

Per our meeting on the Tuesday, July 12 , 2016 regarding escrow money/ this letter outlines the public
benefit items proposed to be completed very soon/ and for which the ownership group of property,
Swedproperty, LLC, requests escrow monies. As discussed, these requested items meet the contractual

obligation to have items on, contiguous with, or adjacent to the Property. The Public Benefit
Improvements outlined below indude public benefit improvements which are expressly included in the
contract language, as well as those items which were described in the Buyer Proposal/ which focuses on

the public benefit of providing quality workforce housing to the community.

Public Benefit Escrow Items

Public Areas by the Core Trail
o Landscaping and green infrastructure
o Benches, Bike Racks/ Outside Fireplace

$100,000
$20/000

River bank access and enhancements;

$50/000 *See note below

Core Trail branches

$20,000

Sustainability/ Energy Efficiency (current city council goal)

o Roof repair/replacement with additional insulation
for increased energy efficiency $22,610
o Replace light bulbs/fixtures with energy efficient lights $10,000
o Replace all appliances with energy star rated appliances $58,000
o Repiace all water fixtures with water conservation units $ 2/500

o Replace all toilets with water conservation units $ 6,890

($90,000 total)

 Buyer Proposal Public Benefit items (Workforce Housing)

o Upgraded Decks for Safety Improvements 5/000
o Fire Alarm Monitoring System 11,000
o Residing of buildings (using reclaimed wood) 80/000 ($135,000 total)
o Parking lot improvements and repair 14,000 ($25/000 total)

Total

$400,000

As noted above, the total is $400/000 dollars. The escrow money totals $400,000 dollars. Of this
$400/000 dollars Swedproperty/ LLC is requesting $352,500 dollars now/ with the remaining $47/500
dollars for the Improved River Access to remain in escrow as outlined below. Please note the above
mentioned line items are only a portion of the monies for improvements to be spent with escrow
monies as mentioned in the proposal/ purchase contract, and escrow agreement.

Improved River Access: Of the $50,000 appointed for the improved river access we (Swedproperty/ LLC)
have already paid $2/500 dollars for the first phase of design plans. As mentioned in previous
conversations, of the $50,000 budget we have $20/000 dollars set aside for design plans/ engineering,
permits fees and all preparatory planning and fees needed before actual construction. We have $30/000
dollars set aside for actual construction. As we have discussed/ our goal is to keep the $50,000 dollars

(less the $2/500 dollars owed back to Swedproperty/ LLC for monies spent thus far) in the escrow
account until the river access plans have been approved by the City of Steamboat Springs and
Swedproperty/ LLC. At that time/ we would relinquish the remaining $47/500 to the city so that the city
can execute this project within the next two years.

Workforce Housing: The iron Horse is delivering on its workforce housing goals and public benefit as
outlined in our original proposal, in winter 2015/2016 the Iron Horse housed 138 people-64% of the
residents were housed through contracts with local employers including Sheraton, Ski Corp/ Wyndham
and the City of Steamboat Springs. This summer, units were substantially upgraded with the inclusion of
kitchens in each room on the South building. As a result, this building was largely closed for the
summer. !t has reopened and will be full this winter, housing approximately 80 workers through
contracts with iaea! employers. The North building housed 56 residents this summer through individual
[eases and contracts with local employers. The North building largely has individual leases-we are
currently repairing and upgrading the 4 units that are vacant with new paint, ti!e, carpet and furnishings
as needed and anticipate that these will be leased as soon as they are finished. At this point, we have
upgraded all but 5 units in the North building and we anticipate upgrading the remaining units as they
open up.
The iron Horse continues to play an important role in workforce housing on a short term and longer
term basis. We have both employer master leased units, as well as individually leased units. We will
lease a unit for a short period - such as 3 weeks - as well as longer leases of up to 3 years. Our leases

are customized to meet the needs of the individual orempioyer/ and we have worked with individuals
from Habitat for Humanity/ Colorado Mountain College, Sheraton, Wyndham, Ski Corp/ the City/ and
numerous small businesses on both short and longer term workforce housing.

We have worked diligently to improve the units - please see the attached photographs which document
this effort. All of these improvements and renovations have been conducted with the goal of enhancing
not only the units but also with an eye to sustainabHity-with energy efficiency, water conservation, and
reclaimed materials at the forefront. Our ultimate goal is to create a nice living environment for
workers in our community.

Please let me know if anything else is needed.

Respectfuiiy submitted by/

Brandon Dardanis

Ski Town Commercial

970 819 9594

Photos of Renovated Interiors