Chapter 16.115 TIMESHARE DEVELOPMENT AND REGULATION

Provisions contained in this chapter are based on research of past experience with timeshare developments. Special attention is directed to problems related to (1) long-term maintenance, repair and replacement, (2) market and sales practices, (3) management arrangements and (4) full disclosure provisions. It is the intent to set high standards for timeshare developments to avoid the undesirable aspects that have been associated with such programs in other resort communities. The purpose of this chapter is to establish the procedures and standards by which timeshare development may be permitted within the town of Granby. It is the town’s intent to establish timeshare regulations that provide for the protection of the character of the town and help to promote increased tourism and vitality within the town. It is not the purpose of this chapter to evaluate the information provided by a timeshare developer to prospective purchasers. The town requires the providing of information. It remains the responsibility of the individual purchaser to evaluate such information and to make their own determination of whether to purchase a timeshare. No action taken by the town is intended or shall be construed to create any duty or relationship between the town and any timeshare purchaser or other third party. [Ord. 683 § 1, 2007. Code 1999 § 20-1-1].

Article II. Definitions

16.115.020 Definitions.

As used in this code, the following terms shall have the meaning indicated:

“Interval estate” means a combination of:

(1) An estate for years terminating on a date certain, during which years title to a timeshare unit circulates among the interval owners in accordance with a fixed schedule, vesting in each such interval owner in turn for a period of time established by the said schedule with the series thus established recurring annually until the arrival of the date certain; and

(2) A vested future interest in the same unit, consisting of an undivided interest in the remainder in fee simple, the magnitude of the future interest having been established by the time of the creation of the interval estate either by the project instruments or by the deed conveying the interval estate.

“Interval estate” also means an estate for years as described in subsection (2) of this definition where the remainder estate, as defined either by the project documents or by the deed conveying the interval estate, is retained by the developer or his successors in interest.

“License interest” means a contractual or membership right of occupancy which cannot be terminated at the will of the owner or for a term of years, to the recurrent, exclusive use or occupancy of a lot, parcel, unit or segment of real property, annually or on some other periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the property has been divided.

“Timeshare development” means any development of land or property that includes one or more timeshare interests.

“Timeshare interest” means either an interval estate, a time-span estate, or a license interest.

“Time-span estate” means a combination of:

(1) An undivided interest in a present estate in fee simple in a unit, the magnitude of the interest having been established by the time of the creation of the time-span estate either by the project instruments or by the deed conveying the time-span estate; and

(2) An exclusive right to possession and occupancy of the unit during an annually recurring period of time defined and established by a recorded schedule set forth or referred to in the deed conveying the time-span estate. [Ord. 683 § 1, 2007. Code 1999 § 20-2-1].

Article III. Exemptions

16.115.030 Exemption from timeshare regulations.

The following types of ownership and/or development shall not constitute timeshare developments and shall not have to comply with the provisions of this chapter, except where specifically noted otherwise:

(a) Joint tenant and tenant in common ownership of a dwelling unit is not considered a timeshare interest.

(b) “Sixthsharing,” i.e., timesharing in which there are no more than six timeshare interests; provided, however, that any such sixthsharing arrangement shall comply with the applicable requirements of GMC 16.115.050 (zones where exempt timeshares are permitted), 16.115.190(b) (restrictions on sales practices), and 16.115.210 (owners’ association responsibilities). Signs advertising a sixthshare interest for sale that conform to the regulations applicable to the area in which the sixthsharing arrangement is located will be permitted until such time as the initial sale of all six (or fewer than six if fewer timeshare interests are created) of the timeshare interests in the sixthsharing development have been initially sold. After such initial sales, no on-site sign advertising any sixthshare interests for sale shall be allowed on the property unless the entire unit is for sale, and only one such sign shall be allowed at any given time. [Ord. 683 § 1, 2007. Code 1999 § 20-3].

Article IV. Location of Timeshare Developments

16.115.040 Timeshare developments.

Timeshare developments shall be allowed as a conditional use in the timeshare overlay district, which is that area of the town located south of the railroad tracks plus the Shorefox development. Area included in or excluded from the timeshare overlay district may be amended from time to time by resolution of the board of trustees. [Ord. 683 § 1, 2007. Code 1999 § 20-4-1].

16.115.050 Exempt timeshare developments.

Exempt timeshare developments shall be allowed as a use by right in all areas of the town south of the railroad tracks and in the Shorefox development, and as a conditional use in all other areas of the town. The areas where exempt timeshare development are permitted as a use by right or conditional use may be amended from time to time by resolution of the board of trustees. [Ord. 683 § 1, 2007. Code 1999 § 20-4-2].

16.115.060 Timeshare developments and exempt timeshares in PDOD.

Timeshare developments, as well as exempt timeshare developments, shall be allowed in planned development overlay districts (PDOD) if specifically authorized in the PDOD documents. [Ord. 683 § 1, 2007. Code 1999 § 20-4-3].

Article V. Timeshare Submittal Requirements

16.115.070 Application materials.

In addition to the requirements relating to subdivision and conditional use permits, an application for approval of a timeshare development shall include the following information and materials. Unless indicated to the contrary, such materials shall be included as part of the timeshare application:

(a) Timeshare Use Plan. A detailed description of the basic elements of the proposed timeshare use plan. The use plan shall describe the number of licenses or estates being created in each unit, the total number of licenses or estates to be created, whether a purchaser is buying a specific unit for a specific time, a specific unit for a floating time, or whether there is no specific unit but just a specific time. It shall identify the timesharing time periods by letter, name, number or combination thereof, identify the timeshare estate or license and the method whereby additional timeshare estates or licenses may be created, and state the formula, fraction or percentage of the common expenses and any voting rights assigned to each timeshare estate or license. It shall also describe whether owners will be able to participate in an exchange program, and if so, in which program(s) they will be eligible to participate.

(b) Disclosure Statement. The disclosure statement shall be provided to the town prior to the time any sales or sales solicitations commence. The statement shall be deemed complete upon submission unless the town notifies the applicant within 10 business days that a required item was not provided, in which case the disclosure statement will not be deemed complete until the missing portion(s) have been provided and treated as above. The disclosure statement shall include the following:

(1) All information and materials required by Colorado statutes and the rules and regulations of the Colorado Real Estate Commission (CREC), including but not limited to Sections 12-61-401, et seq., C.R.S., and CREC Rules S-23 and S-24. This requirement may be satisfied by providing a copy of the materials filed with the CREC.

(2) Description of the timeshare ownership plan.

(3) Fees and charges associated with the on-site amenities and recreational facilities available for use by owners.

(4) Total financial obligation of purchaser to the seller, but not including how the purchaser will finance or otherwise satisfy that obligation.

(5) Restrictions on use, occupancy, and alienation.

To the extent any of the information relating to subsections (b)(1) through (5) of this section changes, an amended disclosure statement shall be prepared and provided to the town and prospective purchasers before any sales or sales solicitations commence involving the amended information.

(c) Management Plan. The management plan shall be provided prior to the time any sales or sales solicitations commence and shall describe who will manage the development and how it will be operated. The plan shall be deemed complete upon submission unless the town notifies the applicant within 10 business days that a required item was not provided, in which case the management plan will not be deemed complete until the missing portion(s) have been provided and treated as above. The management plan shall include:

(1) The identity and contact information for the person or entity responsible for managing the overall development, including common areas and on-site amenities.

(2) The identity and contact information for the person or entity responsible for coordinating the use, rental and unit occupancy of those units that will or may be available for rental to the public.

(3) Provisions for selecting, appointing and securing successors to the individuals or entities identified in subsections (c)(1) and (2) of this section.

To the extent any of the information relating to subsections (c)(1) through (3) of this section changes, an amended management plan shall be prepared and provided to the town and prospective purchasers before any sales or sales solicitations commence involving the amended information.

(d) On-Site Sales Office. The applicant shall indicate in the application whether an on-site sales office or a sales office within the town of Granby will be used to market the timeshare interests. Any such on-site or in-town sales office shall comply with all applicable regulations of the town, including with particularity the sign code applicable to the area where such office is located.

(e) Timeshare Project Documents. The project documents for a timeshare development shall be provided in draft form as part of the application and the final forms shall be submitted prior to the time any sales or sales solicitations commence. Such documents shall be the same as and shall be subject to the same review as those required by this code for a condominium development, except such timeshare documents must specifically authorize and disclose that the property will be developed, in whole or in part, as a timeshare project and, to the extent the entire project is not a timeshare project, must identify the portions that will be developed as timeshares.

(f) Impact Analysis. The applicant shall provide an impact analysis addressing (1) the anticipated impacts of the project being considered on the town’s physical plat, revenue sources, transportation system, roadway system, recreational amenities, municipal programs and facilities, and programs and facilities of special districts providing services to the town and (2) how such impacts will be mitigated. As it relates to water and sewer service and utilities, the impact study shall be based on an assumption of 100 percent occupancy. [Ord. 683 § 1, 2007. Code 1999 § 20-5].

Article VI. Timeshare Review Process and Criteria

16.115.080 Review process.

Approval of a timeshare development shall also require subdivision approval, if the property has not previously been subdivided, and conditional use permit approval. [Code 1999 § 20-6-1].

16.115.090 Submission simultaneous with conditional use permit application.

The application for a timeshare development shall be submitted simultaneously with an application for a conditional use permit, as provided by this code. The timeshare development application shall be subject to the same completeness requirements, timing, notice, hearing and other process-related requirements as are applied to a conditional use permit application. [Ord. 683 § 1, 2007. Code 1999 § 20-6-2].

16.115.100 Combining with subdivision process.

Subdivision approval may be sought simultaneously with approval of the timeshare development application. In no event shall the board of trustees grant final approval to a timeshare development unless a final plat has been or is approved for the property involved in the timeshare development at or before the time the timeshare development is approved. [Ord. 683 § 1, 2007. Code 1999 § 20-6-3].

16.115.110 Review criteria.

(a) Timeshare applications shall be subject to the same review criteria as other conditional uses, as set forth in GMC 16.105.010(g).

(b) In addition, timeshare applications shall address the following issues:

(1) Whether on-site management and/or a staffed on-site front desk should be required in light of the size and nature of the proposed timeshare development.

(2) Affordable housing requirements or demands likely to be generated as a result of the timeshare development. The affordable housing demand shall take into consideration the maximum number of proposed rooms in the development, as well as any retail, restaurant, conference, or other functions proposed in the development.

(3) Parking requirements, which shall be calculated by applying the parking standards for the zoning district or, in the case of a PDOD, which shall be negotiated with the town, as part of the PDOD approval process.

(4) Lighting requirements, which shall comply generally with the town’s lighting requirements, but may be modified in order to reflect and mitigate the unique impacts that may result from the timeshare development.

(5) Drainage requirements, which shall comply generally with the town’s drainage requirements, but may be modified in order to reflect and mitigate the unique impacts that may result from the timeshare development.

(6) Whether guest transportation services will be provided, in order to offer an alternative to having owners or members using their own vehicles. No owner or member shall store a vehicle in a parking space on-site when the owner is not using the estate or license. [Ord. 683 § 1, 2007. Code 1999 § 20-6-4].

16.115.120 Approval options.

The planning commission may recommend approval, approval with conditions, or denial of the proposed timeshare development, based on the foregoing criteria. Such decision shall be reflected by a written resolution adopted by the planning commission, following public meetings or public hearings to consider the application.

The board of trustees may approve, approve with conditions or deny the proposed timeshare development, after considering the recommendation of the planning commission and all other relevant matters. Such approval shall be done by resolution or ordinance adopted following one or more public meetings or public hearings to consider the application. [Ord. 683 § 1, 2007. Code 1999 § 20-6-5].

Article VII. Conversions

16.115.130 Evidence of effect.

In the case of any conversion of a multiple dwelling unit or condominium subdivision to a timesharing subdivision, the board of trustees shall be provided with satisfactory evidence that such conversion will not have a detrimental effect on the availability of long-term rental housing or accommodations in the town. [Ord. 683 § 1, 2007. Code 1999 § 20-7-1].

16.115.140 Proposals.

A proposal to convert an existing dwelling unit to a timeshare project shall include all necessary physical improvements to assure satisfactory use as a short-term vacation facility. [Ord. 683 § 1, 2007. Code 1999 § 20-7-2].

16.115.150 Project approval.

If the project sought to be timeshared is a condominium or townhouse, applicant shall provide written proof that the condominium or townhouse documents allow timesharing, that 100 percent of the owners of the condominium or townhouse units have approved the timeshare project (if there are unit owners other than the applicant), and that all mortgagees of the condominium or townhouse project or units therein have approved the proposed timeshare project. [Ord. 683 § 1, 2007. Code 1999 § 20-7-3].

16.115.160 Code compliance.

Applications to convert existing structures to timeshare developments shall comply with all other provisions of this chapter. [Ord. 683 § 1, 2007. Code 1999 § 20-7-4].

16.115.170 Districts.

Conversions shall be permitted as a conditional use in the central business (CB) district. In all other zoning districts, conversions are permitted only as a PDOD. [Ord. 683 § 1, 2007. Code 1999 § 20‑7‑5].

Article VIII. Property Taxation

16.115.180 Tax assessment.

To the maximum extent permitted by law, timeshare developments shall be treated as commercial developments for purposes of property tax assessment. [Ord. 683 § 1, 2007. Code 1999 § 20-8].

Article IX. Additional Regulations Applicable to Timeshare Developments

16.115.190 Sales and marketing.

(a) Regulation/Licensing of Sales Personnel. Salespersons of timeshare interests operating within the town shall maintain a valid Colorado real estate license or shall operate under the direct supervision of someone possessing such license, and shall comply with all applicable rules and regulations promulgated by the state of Colorado, or any agency thereof, relating to such license or to the sale of timeshare interests.

(b) Limitations on Marketing and Sales Practices. The marketing and sale of timeshare estates shall be governed by the real estate laws set forth in Title 12, Article 61, C.R.S., as may be amended from time to time, and all regulations promulgated pursuant to such provisions.

(1) The following marketing and sales practices for a timeshare development shall not be permitted:

(i) The solicitation of prospective purchasers of timeshare units on any public street, mall or other public property or facility; and

(2) In connection with gifts to encourage potential purchasers to attend a sales presentation or to visit a timeshare development, the following gifts are not permitted:

(i) Any gift for which an accurate description is not given;

(ii) Any gift package for which notice is not given to the prospective purchaser that the purchaser will be required to attend a sales presentation as a condition of receiving the gifts; and

(iii) Any gift package for which the printed announcement of the requirement to attend a sales presentation is in smaller typeface than the information on the gift being offered.

(c) Sales and Purchase Contracts. All sales contracts used in connection with the sale or purchase of a timeshare interest shall include provisions that allow a prospective purchaser the right to rescind the purchase contract for a period of five days from the date the contract is signed, without penalty or costs of any kind. Any deposit paid by a prospective purchaser shall be held in an escrow account during the rescission period. If the deposit is tendered in the form of a check, then the check may be held and not deposited, in lieu of depositing it in an escrow account during the rescission period. [Ord. 683 § 1, 2007. Code 1999 § 20-9-1].

16.115.200 Maintenance and management.

The applicant shall provide documentation that there will be a reserve fund established to ensure that the proposed timeshare development can be properly maintained throughout its lifetime. The town shall be under no obligation to evaluate the financial sufficiency of the proposed fund, as that determination is to be made by the purchaser based on the information provided by the applicant. [Ord. 683 § 1, 2007. Code 1999 § 20-9-2].

16.115.210 Owners’ association responsibilities.

(a) Utilities and Assessments. The owners’ association shall be liable and responsible for payment for all utilities and other town assessments associated with the timeshare development. Such charges shall be prorated by the owners’ association to the individual owners and/or members.

(b) Sales Tax License. The owners’ association shall, either directly or through the management entity managing the timeshare development, obtain and maintain a current sales tax license and shall assess sales tax on any nightly rental of a unit within the development and shall otherwise comply with all sales tax rules and regulations promulgated by the state of Colorado or the town of Granby.

(c) Business License. The owners’ association shall, either directly or through the management entity managing the timeshare development, obtain and maintain a current business license and shall comply with all provisions of the town’s business licenses ordinances. [Ord. 683 § 1, 2007. Code 1999 § 20-9-3].

16.115.220 Nightly rentals.

(a) Timeshare units that are available for short-term rental shall be listed at competitive rates in a central reservation system.

(b) The covenants of the homeowners’ association shall permit walk-in rental of units. The association shall not limit rental of units to such arrangements as only weekly rentals or Saturday-to-Saturday rentals; instead the association shall permit shorter stays, split-week rentals, and similar flexible arrangements. [Ord. 683 § 1, 2007. Code 1999 § 20-9-4].