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Home My WebLink About20042251.tiff S 1dCC rltH - 4 - v 5 FILED IN WELD.COUNT 1 Il DISTRICT COURT, WELD COUNTY C0MBINE& C0MM S V 19th Judicial District 901 9th Ave. 2O3 MAY -8 A II; 21 Greeley, Colorado 80631 Plaintiff(s): RJML, LLC, D/B/A EL REVENTON NIGHT CLUB T-71 Defendants: BOARD OF COUNTY COMMISSIONERS WELD COUNTY, fri COLORADO; GLENN VAAD, DAVID E. LONG, M. J. •COURT USE ONLY. GALLE, WILLIAM H. JERI E, AND ROBERT D. MASDEN !`I Attorney for Plaintiff Case Number: Diane Goldenstein, P.C., Attorney at Law �5 500 Coffman St., Suite 201 02-CV-400 O Longmont, CO 80501-5445 Phone No: (303) 684-8188 FAX No: (303) 684-8189 Atty. Reg. #15998 Division® I V 5 Bruce Barker, Esq. Attorney for Defendants Weld County Attorney P.O. Box 758 - Greeley, CO 80632 Atty. Reg. # , STIPULATION FOR DISMISSAL WITH PREJUDICE The Plaintiff and Defendants, through their respective counsel, move to dismiss this appeal with r� prejudice on the following grounds: 1. The Plaintiff was granted a Hotel Restaurant (Liquor) license for the premises which were - the subject of the appeal by the Plaintiff. 2. Only one such liquor license may be held for the premises,so the appeal of the denial of the Tavern (Liquor) license is moot. W 0 Respectfully submitted, 171.;(01A, Diane Goldenstein; P.C. ce Barker, We County Atto n - Attorney for Plaintiff Attorney for Defendants EXHIBIT ++ 70, 1 BUSINESS LEASE • This Lease is made and entered into on November 10,2000, between Emmett Formby and Catherine Formby, Lessor, and Manuel Manriquez,Ruben J. Rodriguez, and Jose De Jesus Silva, Lessees. In consideration of the payment of the rent and the performance of the covenants and agreements by the Lessee set forth below,the Lessor does hereby lease to the Lessee the following described property situate in the County of Weld, in the State of Colorado; the street address of which is 13015 Weld County Road 16, Ft. Lupton, Colorado 80621. SEE ATTACHED LEGAL DESCRIPTION To have and to hold the same with all the appurtenances unto the said Lessee from twelve o'clock noon on November 10, 2000 and until twelve o'clock noon on November 10, 2003, at N and for a rental for the full term of$252,000.00, payable in monthly installments of$7,000.00, due on or before the first day of each calendar month during the term of this lease at the office of the Lessor at 21 N. 1St Ave. #190, Brighton, Colorado 80621, without notice. The Lessee, in consideration of the leasing of the premises agrees as follows: 1. To pay the rent for the premises above-described. 2. Lessee shall be responsible for: a) all taxes, assessments, and other governmental charges which are levied against and may create a statutory lien upon the leased premises which are levied or assessed during the term of this lease; and b) all premium for fire and extended coverage insurance, property damage, and liability insurance in such amounts as the Lessor may reasonably require; and c) all costs and expenses of repairing and maintaining structures on the land, all of its components, and all land surrounding the building. 3. To keep the improvements upon the premises, including sewer connections, plumbing, wiring and glass in good repair, all at Lessee's expense, and at the expiration of this lease to surrender the premises in as good a condition as when the Lessee entered the premises, loss by fire, inevitable accident, and ordinary wear excepted. To keep all sidewalks on and around the premises free and clear of ice and snow, and to keep the entire exterior premises free from all litter, dirt, debris and obstructions; to keep the premises in a clean and sanitary condition as required by the ordinances of the city and county in which the property is situate. 4. To sublet no part of the premises, and not to assign the lease or any interest therein without the written consent of the Lessor. 5. To use the premises only as a restaurant, bar, nightclub and lounge and to use the premises for no purposes prohibited by the laws of the United States or the State of Colorado, or of the ordinances of the city or town in which said premises are located, and F IS G M cast i I-Q 052 INITIA%/ G L-/-• U Jy Cgjp 'HERE` 1 i ` i for no improper or questionable purposes whatsoever, and to neither permit nor suffer any disorderly conduct, noise or nuisance having a tendency to annoy or disturb any persons occupying adjacent premises. 6. To neither hold nor attempt to hold the Lessor liable for any injury or damage, either . proximate or remote, occurring through or caused by the repairs, alterations, injury or accident to the premises, or adjacent premises, or other parts of the above premises not herein demised, or by reason of the negligence or default of the owners or occupants thereof, to be endangered by overloading, nor said premises to be used for any purpose which would render the insurance'thereon void or the insurance risk more hazardous, nor make any alterations in or changes in, upon, or about said premises without first obtaining the written consent of the Lessor. 7. To allow the Lessor to enter upon the premises at any reasonable hour. 8. To pay all charges for water and water rents, and for heating and lighting of the building in which said premises are located. IT IS EXPRESSLY UNDERSTOOD AND AGREED BETWEEN LESSOR AND LESSEE AS I FOLLOWS: 9. No assent, express or implied, to any breach of any one or more of the agreements hereof shall be deemed or taken to be a waiver of any succeeding or other breach. Any ipayment by Lessee, or acceptance by Lessor, of a lesser amount than due shall be treated only as a payment on account. Further, failure of the Lessor to timely bill for taxes, insurance or repairs, as required herein, shall not be deemed a waiver of the Lessee's liability to pay same. 10. If, after the expiration of this lease, the Lessee shall remain in possession of the premises 1( and continue to pay rent without a written agreement as to such possession, then such tenancy shall be regarded as a month -to-month tenancy, at a monthly rental, payable in advance, equivalent to the last month's rent paid under this lease, and subject to all the I terms and conditions of this lease. 11. If the premises are left vacant and any part of the rent reserved hereunder is not paid, then the Lessor may, without being obligated to do so, and without terminating this lease, I retake possession of the said premises and rent the same for such rent, and upon such conditions as the Lessor may think best, making such change and repairs as may be required, giving credit for the amount of rent so received less all expenses of such I changes and repairs, and the Lessees shall be liable for the balance of the rent herein reserved until the expiration of the term of this lease. I 12. If any part of the rent provided to be paid herein is not paid when due, or if any default is made in any of the agreements by the Lessee contained herein, it shall be lawful for the Lessor to declare the term ended, and to enter into the premises, either with or without I legal process, and to remove the Lessee or any other person occupying the premises, using such force as may be necessary, without being liable to prosecution, or in damages therefore, and to repossess the premises free and clear of any rights of the Lessee. If, at any time,this lease is terminated under this paragraph,the Lessee agrees to peacefully surrender the premises to the Lessor immediately upon termination, and if the Lessee remains in possession of the premises,the Lessee shall be deemed guilty of forcible entry and detainer of the premises, and, waiving notice, shall be subject to forcible eviction ( with or without process of law. r/k4n (asp U CV' Wdd 1 D iii-e copy 4"i, 42 ...... ) -4 1NjilERE i IV- //1 0 � ! 053 1 r 14. In the event of any dispute arising under the terms of this lease, or in t)ie event of non- , payment of any sums arising under this lease and in the event the matter is turned over to an attorney, the party prevailing in such dispute shall be entitled, in addition to other Viz, damages or costs, to receive reasonable attorney's fees from the other party. 15. In the event any payment required hereunder is not made within ten(10) days after the `> payment is due, a late charge in the amount of five percent (5%) of the payment will be pp , paid by the Lessee. 16. In the event of a condemnation or other taking by any governmental agency, all proceeds shall be paid to the Lessor hereunder,the Lessee waiving all right to any such payment. ,., 17. This lease is made with the express understanding and agreement that, in the event the ,, , Lessee becomes insolvent, or is declared bankrupt, then, in either event,the Lessor may declare this lease ended, and all rights of the Lessee hereunder shall terminate and cease. , ..,• THIS LEASE shall be binding on the parties,their personal representatives, successors and •. .4 assigns. Sir #e'"1F F/ / , Emm [f"�'oErfiby,Lessor k C' rine Formby, L ssor � . I IManue NI• ri ez es• e IR . ;l Lesse I ose D: esus • va, Lessee I t r t o CaA b G ;1e 0 2 c, copy ‘ du, o3 054 Here,in the neighborhood under consideration,there are four taverns. Three hotel/restaurant licenses, a hotel/restaurant with optional premises, two club licenses, three retail liquor store licenses, and three 3.2 beer outlets are also present. (Tr.P.29,L.6 -L.15; F&R.P.111) e the needs" f Where a there are e a nunumber of should licensed h n outlets in an area, their inadequacy, if any, to serve 276 278 382 P.2d 807, 809 (1963); Tavella v. E the i applicant."152 Colo. 506, 507,383 P.2d 314,315 Eppinger,, (1963). It is not sufficient to demonstrate that there is a need for facility to be associated with a tavern;the applicant must show the need for the liquor establishment itself. (See Tavella, where the Court was singularly unimpressed with the argument that the applicant would have been the only bowling alley with a tavern in the neighborhood.) The burden of proof for the applicant is by "competent evidence." Board of County Commissioners of Jefferson County v. Evergreen Lanes, 154 Colo. 413,416, 391 P.2d 372, 373 (1964). Mr. Rodriguez's testimony did not refer to any of the existing liquor outlets in the neighborhood. (Tr.P.34,L.23 - P.54,L.24) His obvious effort was to convince the Board that the benefit of issuing the tavern liquor license would be the creation of an events center, available for training and multi-cultural events. The two other witnesses who spoke in favor of the license, Mr. Jose de Jesus Silva and Mr. Jorje Silva, echoed Mr. Rodriguez's desire for an events center. (Tr.P.64,L.8 -P.65,L.6; and Tr.P.90,L.3 -L.14) There was no showing by Mr. Rodriguez that the needs of the neighborhood,in terms of the adult residents' ability to obtain liquor by the drink, was not being accommodated by existing outlets. There is simply no evidence in the record that(quoting Justice McWilliams in Tavella) ".. the thirst needs of[thej neighborhood were being inadequately met by the ... existing outlets." The petition offered by Mr.Rodriguez(F&R.P.89-97)must be viewed with some skepticism. Except for the first page signed on the bottom by Mr. Rodriguez,none of the pages of the petition were signed and attested to by their circulators. If Mr. Rodriguez circulated the petition, it is reasonable to assume that he made the same pitch to the signers that he did to the Commissioners, i.e.,that there is a need in the neighborhood for the El Reventon because it will be an events center for training and multi-cultural activities. The first page of the petition does not identify the outlets"or what"needs"of the signers in support are not being met. Finally,the testimony by Rodriguez "present laying foundation for the introduction of the petition did not indicate who circulated the petition or how the circulating was accomplished. (Tr.P.52,L.22-P.53,L.3) Upon questioning later by the Board,Mr.Rodriguez stated only that the petition had been passed"door-to-door." (Tr.P.63, L.21 -L.24) Clearly, the petition was not one conducted by a"scientific survey firm,"like the one in the case ofSouthland Corp. v. City ofWestminster City Council,746 P.2d 1353, 1354(Colo.App. difficult 1987). ) Without lima a whether supperporting s who the methodology of how the petition was circulated, it is license would have felt comfortable signing may opposed to the issuance of the tavern liquor credibility in this regard is questionable given the at petition state r opposition. The petition's ( "Oppose"checkmarks. r Oil Page 8 of 14 Pages Cory G-y 'a3 The fact that a petition has been signed by more persons favoring the issuance of a license does not of itself mandate the issuance of the license. Kornfeld v. Yost,37 Colo.App.483,485,551 P.2d 219,221 (1976). The Board was adequately informed at the hearing of the needs and desires criteria for its consideration. Each Commissioner had before him a"Liquor Licensing Criteria"finding sheet as explained by the Weld County Attorney. (F&R,P,109-110;Tr.P.133,L.24-P.136,L.10) Instruction and argument was made by the Plaintiff's attorney, as to the requirements posed by Colorado law with respect to the applicant first establishing a prima-facie case as to the needs and desires,and, if so, the evidence then necessary to overcome the prima-facie case. The Plaintiff did not prove a prima-fade case. Mr. Rodriguez attempted to sell the Board on the idea that the neighborhood and all of Weld County would benefit from the issuance of the license because the facility would be an events center for training and multi-cultural activities. These sentiments were echoed by the only other witnesses who testified in favor of the license, Mr. Jose de Jesus Silva and Mr. Jorje Silva. No testimony was offered stating that the needs of the neighborhood, in terms of the adult residents' ability to obtain liquor, was not being served by existing outlets. Finally,although the petition was purportedly signed by 68 persons in support,no foundation was laid in the record as to whether the signers were supporting the issuance of the license because the facility was to be an events center, or because they felt their ability to obtain (� liquor was not being served by existing outlets. 2. If the Court finds the Plaintiff established a prima-facie case, the Board was not arbitrary and capricious in its finding that the reasonable requirements of the neighborhood did not justify approval of the license. At the hearing, residents and business owners from the neighborhood expressed their opposition to the issuance of the license. The Board heard from Mr.Bill Wallace, Like some of the signers of the Plaintiff's petition, Mr. Wallace has had a business (attorney office)in Fort Lupton for many years. (Tr.P.103,L.9 - 11) Mr. Wallace expressed his opinion that the needs of the neighborhood and its adult inhabitants are being adequately served by existing liquor licensed establishments. (Tr.P.103,L.24-P.104,L.14) Testimony was given by Mr. Brian Funderburk. He believes 'there are enough bars in town." (Tr.P.108,L.24 - L.25) Mr. Richard Halley and Mr. Forrest Tedford each stated opposition to the issuance of the license. Finally,Mr. David Norcross stated, "We have more than enough places that serve alcoholic beverages in the valley." (Tr.P.121,L.24-P.122,L.1) The record includes a listing of the liquor licensed establishments in the neighborhood. (F&R.P.111) Commissioner Masden, who inspected the facility and the neighborhood prior to the hearing, reported to the Board about his findings of the number and type of liquor establishments. (Tr.P.29,L.6 -L.15) c . Page 9 of 14 Pages No court may substitute its judgement for that of the local licensing authority when there is any evidence in the record that supports the conclusion of the licensing authority. Canjar v Huerta, 193 Colo. 388,390, 566 P.2d 1071, 1072(1977);Duren, Inc. v. City of Lakewood, 709 P.2d 74,77 (Colo. App. 1985). Although the facts here may not be as egregious as those stated in the Duren case,there is evidence in the record that Mr. Rodriguez had experienced difficulties obtaining and/or operating liquor licensed establishments in other jurisdictions and in Weld. The Board could conclude that his track record for owning and/or operating taverns was stained and his reputation unsatisfactory as a result. CONCLUSION Plaintiff did not prove a prima-facie case for the issuance of the tavern liquor license for the El Reventon. Plaintiff needed to prove that the existing licensed outlets are inadequate to serve the needs of the neighborhood. Mr. Rodriguez stated his perceived need of the neighborhood for an events center for training and multi-cultural events,but failed to provide evidence sufficient to prove that the need of the adult inhabitants' for liquor by the drink is not being met by the existing liquor establishments. Even if Plaintiff proved a prima-facie case, it was overcome by testimony of residents not in favor of the issuance of the tavern liquor license. There was sufficient evidence presented at the hearing from law enforcement officials to show how the El Reventon would burden the law enforcement resources in the neighborhood. "Undue concentration" of licensed ,. establishments of the same type would be created by the addition of the El Reventon to the list, because of the size of its capacity and the foreseeable problems created as a result. Finally,there is evidence in the record to support the Board's finding that Mr. Rodriguez's reputation was unsatisfactory. The Board of County Commissioners was not arbitrary and capricious in its denial of the tavern liquor license application of RJML LLC. The Board respectfully requests that the Court find that the Board acted within its jurisdiction and did not abuse its discretion and assess costs against the Plaintiff. Respectfully submitted, BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO; GLENN VAAD,DAVID E. LONG,M. . GEILE,WILLIAM H. JERICE, AND ROBE . MASDEN. BY: CE T. B R #13690 Page 13 of 14 Pages '4 hits . Liquor License Application El Reventon Night Club 13015 Weld County Road 16 1 Ft Lupton Co. t r November 9t,2000 1 i On November 2, 2000 I was requested to complete a liquor review for the El Reventon Night Club. The El Reventon Night Club is a new club that is requesting a license for liquor and beer sales. From my investigation I have found several concerns the Sheriff's Office has with the operation of a liquor establishment located at the above address: I 1,Mr Rodriguez has been associated with other liquor establishments that have had problems e with narcotic violations and numerous calls for services by law enforcement. Mr Rodriguez is currently a Manager at Club Romance, located at 33131 Hwy 85 Lucerne, Co. The Weld i County Sheriff's Office has responded to Club Romance at least 27 times where reports were , taken.( See attached report). Mr Rodriguez was the operator of the Tentaton bar in the city of I Dacono. Reports from Dacono P.D. indicate that there were several problems with narcotic violations and having too many people in the bar. This caused a stress on the Dacono Police Department due to the number of calls for service at the bar. I have requested copies of reports from the Dacono Police Department, however,as of this report I have not received them. 2, I made contact with Lieutenant Perales at the Ft Lupton Police Department. I advised Lt. Perales of the request for the liquor license and that the bar may be opening. Lt. Perales was quite concerned about the bar and the impact that it would have on their police department. Perales' concern is due to the number of calls for service that can come from a liquor establishment, and the Bar being located right outside of the city limits of Ft Lupton. The Ft Lupton Police Department would be requested to assist the Sheriff's Department for in-progress calls. 3,In review of the application for the liquor license,box#30,the dollar amount that Mr. Rodriguez indicates that he will invest in the Night Club is $15,900. Mr Rodriguez states that he intends to operate a Restaurant and Night Club. I have a concern with the remodel of the building. Mr. Rodriguez does not address how he plans to remodel the building. If he's going to have a restaurant he has not indicated the placement of tables, kitchen and bar etc. Prior to Mr. Rodriguez' lease, this building was used as an auto sales lot with a shop. The plans that Mr Rodriguez provided in the application do not show seating capacity or an occupancy limit for the building. The plans do not indicate parking and how the patrons intend to enter or exit the „property. This is a concern because the business would be located on Highway 85. Fn at Gig 0 2- CV LIob I / ( /r r; it 6 -y' - O3 G.PY Ve. I d CcunYj S e �(�R , 072 12/11/2000 ClRomance • Call / Incident Analysis and Evaluation Weld County 1`A1 :` Sheriff's Office The following infordtation is an evaluation of the year 2.000 activity at Club Romance as documented by the Weld County Sheriff's Office. All data has been selected by the originating call address of 33131 Hwy 85. Only a portion of all dispatched calls result in a written crime report. The date of November 6th was used as the cut off date due to the time frame of the requested evaluation. MI other year and liquor establishments comparisons share the same time frame. For any further information, feel free to contact the crime analysis unit at(970) 356-4015 x 4669. There were a total of 106 dispatched calls to Club Romance between the dates of January i', 2000 and November 6'h, 2000. Calls to the club are down 47 calls from last year, however the greatest influence on this reduction are the numbers of traffic stops, bar checks, and miscellaneous calls, which were all reduced. Narcotics violations and disturbances have remained at the same rate while the amount of critical calls have all increased, assaults are up by 40%, fights by 150%, and liquor violations by 100%. These calls resulted in a YTD total of 3455 minutes on scene,or 57.6 hours. The costs to the Sheriff's Office incurred by these calls at contract rates total $4,377.60. When figured on a daily average basis, the complete year of 2000 calls will cost$5,139.20. The time spent on scene at Club Romance is 13% greater than El Rodeo, and 90% greater than The Fort. Club Romance has the highest number of dispatched calls of any address in Weld County. All other areas with similar activity rates are entire townships, and law enforcement centers that are used for criminal interviews and holding. That makes 33131 HWY 85 the #1 problem address in the entire county. SEP-12-2001 02 :22 PM P. 01 . ' Mk 1Y' i'a' •'tiy�Fi�H,•Yy�r,�I 042%., t ,„ 4 tit SECFIETAFtiA DE . ti,Le itEIACIONES Li') CONSULADO GENERAL DE MEXICO. !Xr>En1oAeS yu.r{ DENVER, COLORADO. Num.707 Denver, Colorado Aug 30, 2001. k , Building Inspection &permits 1100 10 th Street, Suite 102, I7314. 11Th t AVENuE7 Cutely, Colorado. 80631. It ff Chief inspector, City Clork'soffice. /wit let & tt j ' .pcarhmz.ii+ o l�tct1\oiflcj 5ervic s Y IThe Consulate General of Mexico has been contacted by Mr. Manuel Manriquez and by Mr. Ruben J. Rodriguez, both Mexican nationals. Their request is related to their intention to get/retain a liquor Ilicence for thier establishments. Both Mr. Manriques and Mr. Rodriguez have complained about what they call unfair acts performed by the office of liquor licencing. The Consulate General will appreciate if you could let us know how their cases develop. Until then I remain, Sincerely, fid• . ' i Leticia aizada Gomez Consul General, Ruben J Rodriguez. Manuel Manriquez 232 Elizabeth st. 404 N. Garden Court. Ft. Lupton Colo. 80621. Plateville, Co 80651 Telephone (303 ) 857 4870 Jchn rqg. LIm °'ig *`" L nntS RotlQ1j r ,an Case_ C-a?9 080 . ..I w wvt FAX NO. 9703520242 P. 03 t . Proposal page 2 Between the hours of 1 a.m. and 2:30.t.m, on the nights that the dance is held at the Maravilla Restaurant,anticipated to be Friday, Saturday and Stu day nights,I will have the traffic directed away from entering Hwy 85 at WCR 16 to INCA 14 and Hwy 85 so that traffic will enter the Highway at the signal light. I propose to close the right lane of westbound traffic on WC ft16 at the stop sign at Denver Ave. and will have the security guards direct the traffic sour:t on Denver Ave. to WCR 14. The security guards will use a security car with lights ands barricade west of WCR 16 to prevent traffic from entering Why 85. The WCR 16 from Hwy ded and will have the cright of way over the traffic e a e directing.will not e t Weewill have d or security guards at the exit of our lot with a stop sign to allow the Hwy 85 trr Bic to have the right of way and maintain an even flow of traffic leaving our lot. The security guards will all have radios and will be in corn=nication with each other. They will have the barricades and cars set up before I a.m, an f will be ready at I a.m. to begin traffic direction. We will also encourage people to have before closing so that we gradual exit rather titan everyone leaving at once. We will put signs inside the restaurant to educate our custon en on how the traffic flow will work so that they will understand before leaving which din ction they need to go. 1 will also include this traffic direction as part of the announcem mts made during the dance. We will also ask them for patience and cooperation. We ex;act to have repeat customers who will be able to make the exit from the parking lot sm rothly as they become accustoms to it. We will also have a eontiauons-play tax shown on TV monitor In the entry way of the restaurant so we can visually ed reek the customers. We want our customers and the other users of the roadway t r have a safe driving experience. We will also have a Designated Driver program and v ill make announcements during the dances to lot people know we will call a t tai for everyone requesting one. J. riguez Department Owner/Manager DR 84041(02/94) COLORADO DEPARTMENT OF REVENUE LIQUOR ENFORCEMENT DIVISION 1375 SHERMAN STREET DENVER CODOte1 INDIVIDUAL HISTORY RECORD To be completed by each Individual applicant,all general partners of a partnership,all limited partners owning 10%(or more)of e partnership;all officers and directors of a corporation,all slockholders of a corporation owning 105E(or more)of the stock of such corporation;all limited liability company MANAGING members,or other limited liability company members with a 10%(or more) ownership interest in such company and all managers of a Hotel and Restaurant license. NOTICE:This individual history record provides basic information which is necessary for the licensing authorities investigation.ALL questions must be answered in their entirety.EVERY answer you give will be checked for its truthfulness.A deliberate falsehood will jeopardize the application as such falsehood within Itself constitutes evidence regarding the character of the applicant. 1.Name of Business Oats SOWS Security Numbed') RJML LLC 11 /20/02 2.Your Full Marne(y.L first,midge) R DC1ri 3 Also Known As(maiden naraarycimme,ell0 - quez, Ruben Joseph 4.Mating Address(If alterenl from residence) Horns Telephone S.Rn;dnua,ddress(street and number.dry,cute,ZIP) 303 857 4870 232 Elizabeth Court, Ft. Lupton, CO 80621 a Date of Site 1 Pierre of site zus Citizen? Cuahtemoc, Chihuahua, Mexico a Naturalized.state whew Yes 113 NO Denver, CO When Marne ofU.S.District oan Naewearallon Certificate Number 12—06-85 Denver District Court Gate a Cenificals Tai Ain Geo Alin',ergssiem Cal Mather I Pamme,Rents Cad hum* 12-06-1985 I Height Weight I Nair Color Eye Color Sea Rocs 9.Do You Maw•current Driver's License If Yea.Dv*number,It stale S'9 180 Brn Brown I M IHisp El Yes ❑ No to.Name of Present Employer Romance Inc. 11.Type of Business 1 or Enppyrnem 2,Address of Business ETavern Employed(Street number,city,,tete,ZIP) I Business Telephp,e 401 33131 US Hiway 85. Lucerne. CO 80646 1 790352 3446 11 Present Position DJ and bartender 14.Meant Snag 15.Name of Spouse Mateo maiden name H married Maria L. .anti Rodriguez Manriquez It spot..•.Dale of aim Spouse's Pteq of aim Palestina, Durango, Mexico 17.Spouse's residence sinus a erterenl than yours(street end number,city,slau,ZIP) it Spouse's Present Employer e I Occupation It Address of Spouse's Present Employer housewife 20_ List the name(s)of all relatives working NAME OF RELATIVE RELATIONSHIP TO YOU in OPOSITIONHE Dor having ANA E OFIEMPal TLOYER in the I industry.OEMPLOYER LOCATION OF EMPLOYER Manuel Manriquez brother-in-law Owner 'omance, Inc,33131 US Hiway 85 • Lucerne, CO 21.Do you now,or have you ever held a Sale of Colorado Liquor or Beer License,or loaned money,furniture,fixtures,ewipmenl or inventory,IC any Colorado Liquor or Beer Lxs ese?I1 yes,answer in detail ® Yes ❑ No .yiaf CONTINUED ON REVERSE SIDE PHI• DISTRICT COURT, WELD COUNTY FILM III ED C U1fl5 19th Judicial District COMBINED 00bI,l 901 9th Ave. A01 MAR 13 p tt: OS Greeley, Colorado 80631 Plaintiff(s): RJML, LLC, DB/A EL REVENTON NIGHT CLUB Defendant(s): BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO; GLENN VAAD, DAVID E. LONG, M. J. •COURT USE ONLY. GALLE, WILLIAM H. JERKE, AND ROBERT D. MASDEN Attorney for Plaintiff Case Number: Diane Goldenstein, P.C., Attorney at Law 02C , !\N OD 500 Coffman St., Suite 201 V Longmont, CO 80501-5445 Phone No: (303) 684-8188 FAX No: (303) 684-8189 Division Courtroom Atty. Reg. #15998 COMPLAINT PURSUANT TO C.R.C.P. 106 (a)(4) Comes now Diane Goldenstein,P.C.,Attorney at Law, and enters her appearance before this court on behalf of the Plaintiff RJML, LLC and pursuant to C.R.C.P. 106 (a)(4) requests a review of the findings by the Board of County COMMISSIONERS,Weld County,(Board of COMMISSIONERS) to determine whether the Board of Commissioners has exceeded its jurisdiction or abused its discretion. 1. On February 11,2002,the Commissioners held a hearing on the application for a new Tavern Liquor License by the Plaintiff. The COMMISSIONERS heard testimony and made findings and passed a resolution denying the application for the Tavern Liquor License. 2. The Commissioners issued a written Findings and Resolution on February 20, 2002, which is attached as Exhibit A, denying the license application. - 3. The Plaintiff asserts that he proved a prima facie case to support the issuance of the license; believes the findings and resolution denying the license are not supported by the evidence and that the Board of COMMISSIONERS abused its discretion in denying the license. 4. The Plaintiff has no other plain adequate and speedy remedy otherwise provided by law. Wherefore,the Plaintiff requests that the Court review the findings of the Board of Commissioners to determine if the Board of Commissioners abused its discretion and exceeded its jurisdiction in denying the license. Respectfully submitted, Dian�tein, P.C. Plaintiff's Address: 13015 Weld County Road 16 Ft. Lupton, Weld County, Colorado 80621 FILE; ry y DISTRICT COURT, WELD COUNTY OpIt�INEULO r'"`'" 19th Judicial District �OUr 9019'" Ave. LODZ MAR 13 P 4t 95 Greeley, Colorado 80631 Plaintiff(s): RJML, LLC,D/B/A EL REVENTON NIGHT CLUB Defendant(s): BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO; GLENN VAAD, DAVID E. LONG, M. J. ■COURT USE ONLY. GALLE, WILLIAM H. JERKE, AND ROBERT D. MASDEN Attorney for Plaintiff Case Number: Diane Goldenstein, P.C., Attorney at Law 500 Coffman St., Suite 201 Longmont, CO 80501-5445 Phone No: (303)684-8188 FAX No: (303) 684-8189 Division Courtroom Atty. Reg. #15998 MOTION FOR CERTIFICATION OF RECORD PURSUANT TO C.R.C.P. 106 (a)(4)(III) Comes now Diane Goldenstein,P.C., Attorney at Law, and moves this Court to order the Board of County Commissioners,Weld County,to prepare a certify the complete record of the hearing by the Board of County Commissioners, Weld County, in the matter of the application for a new Tavern Liquor License by RJML, LLC, d/b/a El Reventon Night Club. Further, Plaintiff requests that a transcript of the entire hearing be prepared and that all parts of the application, all exhibits, and any other documents submitted to or considered by the Board be included in the record. The Plaintiff further requests the Board of Commissioners certify the record for authenticity. Respectfully submitted 9ane Goldenstein, P.C. Plaintiff's Address: 13015 Weld County Road 16 Ft. Lupton, Weld County, Colorado 80621 DISTRICT COURT, WELD COUNTY 19th Judicial District FILED IN 901 9th Ave. DISTRICT COURT Greeley, Colorado 80631 APR 03 '02 Plaintiff(s): RJML, LLC, D/B/A EL REVENTON NIGHT CLUB WELD county, cow, Defendant(s): BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO; GLENN VAAD, DAVID E. LONG, M. J. ■COURT USE ONLY. GALLE, WILLIAM H. JERKE, AND ROBERT D. MASDEN Case Number: Division Courtroom ORDER The Board of County Commissioners, Weld County, shall cause to be prepared and certified the complete record of the hearing by the Board of County Commissioners,Weld County, in the matter of the application for a new Tavern Liquor License by RJML, LLC, d/b/a El Reventon Night Club. Such record shall include a transcript of the entire hearing, all parts of the application, all exhibits, and any other documents submitted to or consider d by the Boar . •3o Sr evbrom-ii'� ` - The record stall be submitted 4a02t s _ fry O- frre es°� '- - �- 'ce2:0=• SO ORDERED, this Day of Apr 2002. „-- DISTRICT COURT JUDGE FURTHER ORDERED. h svr paupon shall serve a. copy o all other parties per Rule 5, C.R.C.P. ROOF OF SERVICE SHALL BE FILED WITHIN 20 DAYS L a• DISTRICT COURT, WELD F/CFn Court Address: 901 9th COUNTY, COLORADO c >/i 1, Greeley, CO 80632 Avenue, P.O. Box 2038 IJQj Phone N r O^' Number: 970 351- °�" %-O6,'„,/('r, . 7300 / Plaintiff(s): /�7. R 1ML, LLC, DB/A EL ? V. REVENTpN NIGHT CLUB, Defendant(s): THE BOARD OF i LONG COUNTY, COLORADO; GLEN V S OF WELD ROBERT D. MASDEETLE,N WILLIAM FL JEMD, DAVID E. a FOR COURT USE ONLY Attorney for Plaintiff:Diane Goldstein,P.C.,Attorney at Law 500 Coffman St,Suite 201 Longmont, CO 80501-5445 Phone:(303)684_ Fax: (303 8188 684-8189 Attorney Registration#]5998 Case Number: 02-CV-400 Bruce T. Barker, Weld Co Division: P•O• eBox T. Bar,915 n• I County Attorney Greeley, CO 80632T��Street Phone:(970 Fax: )336-7235 Attorney 352-0242 mey Registration#13690 Cfile the following the Defendant byWithcrespect toANSWER:Paragr and through Bruce T. Barker, Weld CoupAttorney, tamed t Ph 1 of the County and Defendant herein, with the e Complaint, ac exception Defendant admits accepted written evidence that in addition to 2. With respect at the Febru hearing oral efactual allegation contained therein,to Paragraph 2 o f 11, testimony, the herein the Co 2002, hearing. 2002 with the exception thatlaint, Defendant admits the was signed Feb X° February 20, 2002, the Findings and factualdate. allegations ratherthan being Resolution dated February g "issued on that ruary 11, date. Page 1 of 3 Pages 3. With respect to Paragraph 3 of the Complaint, Defendant denies each and every allegation contained therein. 4. With respect to Paragraph 4 of the Complaint, Defendant denies each and every allegation contained therein. General Denial 5. Each and every allegation of Plaintiff's Complaint not specifically admitted shall be deemed denied. Affirmative Defenses 6. The Complaint fails to state a claim upon which relief can be granted. 7. Defendant reserves the right to add additional defenses as they may come to light during the course of these proceedings. 8. Defendant assumes the individual Weld County Commissioners named in the caption, above, are included solely for the purpose of stating who comprises the Board of County Commissioners of Weld County. None of the named Commissioners was served personally with a Summons and Complaint, either in his official capacity or in his individual capacity. WHEREFORE, Defendant requests that the Court dismiss this matter and assess costs against the Plaintiff, or, if the matter is not dismissed, find that the Defendant acted within its jurisdiction and did not abuse its discretion in denying the Tavern Liquor License to the Plaintiff and assess costs against the Plaintiff Respectfully submitted, BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO; GLENN VAAD, DAVID E. LONG, M. J. GEILE, WILLIAM H. JERKE, AND ROB MASDEN. BY: B E T. BARKER #13690 Weld County Attorney Page 2 of 3 Pages CERTIFICATE OF MAILING The undersigned hereby certifies that a true correct copy of the foregoing ANSWER of BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO was placed in the United States mail postage prepaid, addressed to: Diane Goldstein, P.C., Attorney at Law 500 Coffman St., Suite 201 Longmont, CO 80501-5445 DATED this�/-day of 4 , 2002. 9—')Le"-e---1)C) N1WlIIIPbN3ApMm.nwM Page 3 of 3 Pages a NT OF REVENUE Op ,' � '�•+�,":'r-. I fT DIVISION •� ftq+' i I N °, ti INDIVIDUAL HISTORY RECORD „!, r . by each individual applicant,all general partners of a partnership,all limited partners owning 10%(or more)of a I',..."4.;;;,'1,1i1111(officers and directors of a corporation,all stockholders of a corporation owning 10%(or more)of the stock of such iY', j• ` IM,t 1(limited liability company MANAGING members,or other limited liability company members with a 10%(or more) l iii, test in such company and all managers of a Hotel and Restaurant license. +1 Vi dividual history record provides basic information which is necessary for the licensing authorities investigation.ALL questions ;,c,i-,ed in their entirety.EVERY answer you give will be checked for its truthfulness.A deliberate falsehood will Jeopardize the 1 i such falsehood within Itself constitutes evidence regarding the character of the applicant. I. ti Date Social Security Number(s) ;4Lnton Night Club 9/27/00 i (fast,first,middle) 3.Also Known As(maiden name/nickname,etc.) ',rez, Ruben Joseph Ruben r ,` (if different from residence) Home Telephone zabeth Court, Ft. Lupton, CO 80621 (303) 857-4870 - I '" ''••ress(street and number,city.state,ZIP) r.,; izabeth Court, Ft. Lupton, CO 80621 Place of Birth 7.U.S.Citi{en?, ' Chihuahua,Mexico ❑Q Yes ❑ No =te where . When Name of U.S.District Cou4 ,,,:_,_,,, : -r, Colorado 12/6/85 U.S . District Court ! 1• ,i.II If 9'. Certificate Number Date of Certificate If en Alien,Give Alien's Registration Card Number Penmen'Residence Card Number t. ''' 12/6/85 N/A N/A { , -,,Iii.,,'. Weight Hair Color Eye Color Sex Race 9.Do You Have a current Driver's License?If yes,give number,8 state ` 180 Brown Brown Male Mexican X❑ Yes ❑ No 1 11.Type of Business or Employment assent Employer ;:-ace, Inc. Manager of nightclub Business Where Employed(street number,city,state,ZIP) Business Telephone T.,.J., US Highway 85, Lucerne , Colorado 80642 (970) 351-8000 .`.;i,Posiaon gar s Ws 15.Name of Spouse(Include maiden name if applicable) stied Maria L. Rodriguez Manriquez ..[7 to of Birth Spouse's Place of Birth Durango, Mexico .;;I,'s residence address,it different than yours(street and number,city,state,ZIP) `i Present Employer _ Occupation ',;;iii?=ewife Housewife Spouse's Present Employer List the name(s)of all relatives working in or having a financial interest in the liquor industry. AME OF RELATIVE RELATIONSHIP TO YOU POSI110N HELD NAME OF EMPLOYER LOCATION OF EMPLOYER Galindo Sister Owner Fantasia 900 E. 88th Avenue x } N.C. Denver, Colorado Romance . 33131 US Hwy 85 • v�+ tar- tel Manriquez Brother-in-law Owner N.C.Lucerne,Colorado y:, s " 1.- AJ it, . now,or have you ever held a State of Colorado Liquor or Beer License,or loaned money,furniture,fixtures,equipment or inventory,to any Colorado Liquor or Beer e16y;,7 If yes,answer in detail = ' BS ❑ No Please see attachment ;,$P.4 023 • DR 8404-I(2/94) Page 2 22,Haveyou ever been convicted of a crime,or received' ended sentence,deferred sentence,or forfeited bail for anyrn criminal or military court?(Do not Include traffic violations,unless they resulted in suspension or revol. of your driver's license,or you were convicted of driving un,._. fluence of drugs or alcoholic beverages.)If yes, explain in detail. . D Yes © No e 23.Have you ever received a violation notice,suspension or revocation fora liquor law violation,or been denied a liquor or beer license anywhere In the U.S.?If yes,explain in detail. a] Yes ❑ No Please see attachment 24.Military Service(branch) From To Serial Number Type of Discharge None N/A N/A N/A N/A 25. List all addresses where you have lived for the past five years. (Attach separate sheet if necessary) STREET AND NUMBER CITY,STATE,ZIP . FROM TO 1035 S. Fulton Avenue Ft. Lupton, Colorado 80621 11/95 6/00 232 Elizabeth Court Ft. Lupton, Colorado 80621 6/00. Present 28.List all former employers or businesses engaged in within the last five years.(Attach separate sheet if necessary.) NAME OF EMPLOYER ADDRESS(STREET, NUMBER,CITY, STATE,ZIP) POSITION HELD FROM TO • 7070 Winchester Circle Customer Micro Motion, Inc. Boulder, Colorado 80303 Service 8/85-10/98 33131 US Highway 85 Romance, Inc. Lucky Star Lucerne, Colorado 80640 Manager 8/98 Present- 27.What Is your relationship to the applicant?(sole owner,partner,corporate officer,director,stockholder,member or manager) • Member, manager and 100% owner '28.If stockholder,number of shares owned beneficially or of record Percent of outstanding stock owned 29.If partner,state whether ❑ General ® Limited Percent of Partnership Owned If Limited Liability Company(percent owned) 100% 30.Total amount you will Invest in this business,including notes,loans.cash,services or equipment,and operating capital.(Reg.46-106.1 and Reg.47-107.1) • Amounts 15 . 900 . 00 31. Identify the sources of all funds you will invest in this business as listed in 30 above. List all bank names, account numbers and the amount derived from such source.Also identify all persons authorized to sign on, or who are part owners of said account.(Attach copies of all your notes or loans used in or for this business.) Amounts Sources -Account Numbers Names on accounts or person who can sign on this account Savings -Bank of Colorado $ 11,000. 00 # Ruben J. Rodriguez checking/savings - Vectra Bank $ 4, 900. 00 # Ruben J. Rodriquez • $ Oath of Applicant I declare under penalty o rjury/n t e second degree that this application and all attachments are true, correct, and complete to the best of my knowledge. Authorized Signature Title Date / Owner/Manager/Member 9/28/00 024 ry �A ATTACHMENT TO INDIVIDUAL HISTORY/RECORD RE: RJML,LLC, d/b/a EL REVENTON NIGHT CLUB 21. and 23. Ruben J. Rodriguez was an owner of Escaramuch, Inc. which had an alcoholic beverage license in Platteville which expired on October 13, 1994.Mr. Rodriguez had retained the services of an attorney to prepare the renewal application and the attorney failed to do so.Mr.Rodriguez was then required to apply for the alcoholic beverage license again from the beginning which was denied on December 13, 1994 due to"insufficient evidence that the needs of the neighborhood were not being met." - Ruben J. Rodriguez was an owner of Tentacion, Inc. when on August 28, 1997, the Town of Dacono entered into a Stipulation And Agreement with Mr. Rodriguez (and his wife, Maria L. Rodriguez Manriquez)which approved a Tavern License on the condition that Mr. Rodriguez and his wife, Maria, not have any involvement with the business, Tentacion, Inc. and that the license would be suspended for 30 days but said suspension held in abeyance for 1 year on the normal conditions of no violations, etc. The sanctions against Mr. Rodriguez (and his wife) and the suspension were premised upon inaccurate answers regarding prior"denials" (see above). On October 27, 1997,Mr. Rodriguez and his wife,Maria, resigned as Directors and as vice president and secretary, respectively, from Tentacion, Inc. On December 16, 1997 Ruben J. Rodriguez, as owner of Escaramuch, Inc., entered into a Stipulation And Agreement regarding an alcoholic beverage license application in the City of Greeley whereby the application for the Tavern License was withdrawn and Escaramuch, Inc. was required to divest itself from Tentacion, Inc. The Agreement also rescinded the prohibitions against Mr. Rodriguez and his wife,Maria,from the August 28, 1997 Stipulation And Agreement,thus allowing them to be on the premises of Tentacion, Inc. and to be employed by Tentacion, Inc., and deferred i; a"suitability of character" finding regarding Mr. Rodriguez and his wife, Maria, if they would not apply for, have a financial interest in, nor manage a liquor licensed business for one(1)year. 025 RECORD OF PROCEEDINGS MINUTES BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO OCTOBER 15, 2003 TAPE #2003-39 The Board of County Commissioners of Weld County, Colorado, met in regular session in full conformity with the laws of the State of Colorado at the regular place of meeting in the Weld County Centennial Center, Greeley, Colorado, October 15, 2003, at the hour of 9:00 a.m. ROLL CALL: The meeting was called to order by the Chair and on roll call the following members were present, constituting a quorum of the members thereof: Commissioner David E. Long, Chair Commissioner Robert D. Masden, Pro-Tem Commissioner M. J. Geile Commissioner William H. Jerke - EXCUSED Commissioner Glenn Vaad Also present: County Attorney, Bruce T. Barker Acting Clerk to the Board, Carol A. Harding Director of Finance and Administration, Donald D. Warden MINUTES: Commissioner Geile moved to approve the minutes of the Board of County Commissioners meeting of October 13, 2003, as printed. Commissioner Vaad seconded the motion, and it carried unanimously. CERTIFICATION OF HEARINGS: Commissioner Vaad moved to approve the Certification of Hearings conducted on October 13,2003,as follows: 1) Community Development Block Grant(CDBG)Hearing to allow citizens to review and comment on whether to submit an application for the Owens-Brockway Glass Container, Inc. Commissioner Geile seconded the motion, which carried unanimously. AMENDMENTS TO AGENDA: There were no amendments to the agenda. CONSENT AGENDA: Commissioner Geile moved to approve the consent agenda as printed. Commissioner Masden seconded the motion, and it carried unanimously. PRESENTATIONS: RECOGNITION OF SERVICES, REGIONAL COMMUNICATIONS ADVISORY BOARD - DANNY SANDOVAL: Chair Long read the certificate recognizing Danny Sandoval for his service on the Regional Communications Advisory Board. Mr. Sandoval was not present to receive his award. 2003-2891 BC0016 RECOGNITION OF SERVICES,PLANNING COMMISSION-BERNARD RUESGEN AND FRED WALKER: Chair Long read the certificates recognizing Bernard Ruesgen and Fred Walker for their work on the Planning Commission. Neither were present to receive their awards. Commissioner Vaad commended Fred Walker,who began his term on the Planning Commission in 1996 at the same time Commissioner Vaad served as Planning Commissioner. Commissioner Vaad stated Mr.Walker was a worthy spokesman and advocate for the farming community and property owners of agricultural property during his tenure on the Commission,and he expressed his personal gratitude,as well as the gratitude of the Board and citizens involved in agriculture. COMMISSIONER COORDINATOR REPORTS: There were no Commissioner Coordinator Reports. PUBLIC INPUT: There was no public input. WARRANTS: Donald Warden,Director of Finance and Administration,presented the following warrants for approval by the Board: All Funds $462,248.40 Commissioner Geile moved to approve the warrants as presented by Mr.Warden. Commissioner Vaad seconded the motion, which carried unanimously. BIDS: APPROVE REBAR FOR BRIDGE#3/14 REPLACEMENT BID,DEPARTMENT OF PUBLIC WORKS: Mr. Warden stated the Department of Public Works recommended approval of the low bid from Barnsco West, Inc. Commissioner Geile moved to accept the low bid from Barnsco West, Inc., in the amount of C $26,167.00. The motion, which was seconded by Commissioner Masden, carried unanimously. '_ NEW BUSINESS: CONSIDER COMPLIANCE WITH CONDITION F OF RESOLUTION,AND REQUEST FOR INCREASE IN OCCUPANCY NUMBERS-RJML, LLC,DBA LA MARAVILLA RESTAURANT: Bruce Barker, County Attorney,stated La Maravilla Restaurant was issued a Hotel Restaurant Liquor License in March,2003,and in April and problems were found with the septic system in terms of the number of people in the establishment at one time. The Board of County Commissioners temporarily suspended the liquor license for approximately one week,during which time It gathered information on the load capacity of the septic and water systems. After the week,the Board expunged the temporary hold on the license because the owner voluntarily limited numbers in the dance hall to 350 and the seating capacity to 60 seats,limited the number of meals served to 158 meals per day,limited the hours of operation to 11:00 a.m.to 7:00 p.m.daily for the restaurant, as well as decided to use single service use articles for all meals, such as paper plates and plastic silverware,to reduce the load on the water and septic systems. The Resolution approved on April 21, 2003 included Condition of Approval#F,requiring a temporary Certificate of Occupancy to be issued for a period of 180 days, which expires on October 17, 2003. Mr. Barker stated that during the 180-day period, La Maravilla Restaurant must receive a permit for,and have installed,a septic system;or amend the Site Plan to reflect the limited occupancy for both the area where food service is to occur and the dance hall portion of the licensed premises,as well as any other capacity limitations. Mr. Barker stated the issue before the Board at this time is to determine whether the condition has been met or is in the process of being met;and consider the request of Mr. Rodriquez,who has asked for an increase in the numbers. Mr. Barker stated a report from Church and Associates,Inc.,was received yesterday,dealing with loads on the septic system, which is the basis of the request by Mr. Rodriquez for an increase in numbers. He also stated if the Board desires to leave the capacity numbers at the current level, Mr. Rodriquez will need to submit an application fora Site Plan amendment to the Department of Planning Services. Responding to Commissioner Geile, Mr. Barker stated the capacity limit of 350 people in the dance hall was tied into the Minutes, October 15, 2003 2003-2891 Page 2 BC0016 C load capacity of the septic system and had nothing to do with the traffic impact. He also stated the liquor license for this facility will expire on March 10,2004,which is the appropriate time to consider the workings of the facility,including any incidents which have occured,problems encountered with traffic,and how well security guards are doing in terms of directing traffic. Mr. Barker stated this hearing should deal only with the issues of the water and the septic system. Responding to Commissioner Masden regarding the report from Officer Tuttle discussing occupancy levels at various times,which stated the facility was exceeding the capacity limits by possibly 100 people last weekend, Mr. Barker stated the capacity in the facility is relevant, as well as the method used to count people. Mr. Barker stated he requested the report from Deputy Tuttle to determine various capacity levels being maintained and to verify whether the applicant was complying with the restrictions. Commissioner Masden stated he will want to look further at compliance with the capacity limits, with an excess of at least 100 people reported on one occasion. Trevor Jiricek, Departmentof Public Health and Environment,stated a problem has come up because of a non-regulatory water sample drawn by staff on Monday,showing bacteria at an acceptable level and nitrates at 16,which is above the State standard of 10 milligrams per liter. Mr. Jiricek stated Mr. Rodriquez has also taken a sample in the last few days, but he has not yet received the results. Mr. Jiricek discussed the possibility of the State requiring installation of a reverse osmosis system or an alternative water source,which may place an additional load on the septic system. Deputy David Tuttle,Sheriff's Department, responded to Commissioner Masden's earlier comments, stating there is a problem trying to estimate the size of a crowd,because each deputy does it differently. He stated he is not certain how the Deputy arrived at his estimate,and all other indications are the applicant is trying to comply with the limitations. Deputy Tuttle stated he is not sure how much weight should be given to one estimate by itself. Responding further to Commissioner Masden,Deputy Tuttle stated security was dealing with the issue of five people inside the bar who were overly intoxicated and the one Minor In Possession. Ruben Rodriquez,applicant,stated capacity limits are maintained by a security officer who has a counter used to count everyone entering the facility,and then allowing others to enter on a one-to-one basis when people leave the facility. Mr.Rodriquez stated in the case of the minor in the bar,the security guard did his job by escorting the minor out. He further stated they take pictures of any minors found in the bar and do not let them back in. Mr. Rodriquez stated his request to increase the capacity is based on at least 100 people every Saturday night waiting in the parking lot for admission. He stated he has been monitoring the water usage with frequent meter readings, and he is only using one-half of his allowed amount,which is approximately 1,200 gallons on the busiest nights. Mr. wAh fort Lupton regarding annaxatl�iif; Bas = -# •„4,. : th at , f4 • ilitlis0ty Howev f s t 00 . r a 1 •• Wtfuld• rsrr' : .,t. motel $8 eto devcepm0'ntsstaci,iv It i ataraat3 newt oitdrasficaity statteheObet have a meeting With hit LUptertohNc7veritert,28tkregarding the annexation proced Responding to Commissioner Vaad about why Fort Lupton, who previously asked for denial of this application,would now be in favor of annexation,Mr.Rodriquez stated the Chief of Police has changed,and g the Town has been impressed with traffic control and lack of problems in the bar,as well as the low number of incidents. Commissioner Geile stated his concern with increasing the capacity limits is the water sample showing a high nitrate level. Mr. Rodriquez stated he also ran a test sample,and the bacteria level was okay, with the nitrate level at 15 milligrams per liter. He stated he asked Bret Simmons, Colorado Department of Public Health and Environment,what he can do with the facility,however,Mr. Simmons said nothing can be done because of the fertilizers in the area, which may cause nitrates to be higher. Mr. Rodriquez stated Mr. Simmons said they would run another test in three months. Mr. Jiricek stated Mr. Simmons is the District Engineer, and when there is a sample showing excess levels, he needs to resample immediately. He stated bottled water will also be required for the establishment, and the restaurant will have to formulate a long-term solution to the water supply. Commissioner Masden stated Minutes, October 15, 2003 2003-2891 Page 3 BC0016 he agrees with CommissionerGelle and he is not in support of increasing the capacity levels. He feels that an increased capacity would add to the load capacity on the septic system, and the water test shows nitrates at 60 percent over allowed levels,which will require a reverse osmosis system or alternative water supply that may increase the load on the septic system even more. Responding to Chair Long,Mr.Jiricek stated La Maravilla was meeting Condition#F on the septic side,and is not exceeding the capacity of the septic system,and is in compliance with state rules;however,the new samples will probably change that status. Responding to Commissioner Geile,Mr.Jiricek stated it is not necessary to reduce the number of patrons allowed in the facility at present;however,an alternative water source will need to be determined, such as Fort Lupton water or a reverse osmosis system, which may increase the load on the septic system. Kenneth Hamilton,Church and Associates,questioned whether a separate dry well for salts would be allowed,rather than having it go into the septic system. Mr.Jiricek stated he has not permitted dry wells in the last decade, and he will have to review that suggestion before commenting. Chair Long stated Condition#F has been met in regards to the septic system; however, it would only be met with regards to water if the establishment changed to bottled water. Mr.Rodriquez stated he has been using bottled water for drinking during the entire time,and he spends$100 to$200 for bottled water each week. Responding to Chair Long,Mr.Rodriquez stated no well water is being consumed in the restaurant, it is only used in mixed drinks. Responding to Chair Long,Mr.Barker stated the request is to increase the dance hall numbers from 350 to 600,and reduce the number of meals served from 158 to 80. Mr. Barker referenced the second page of Mr.Hamilton's report under"Conclusions"explaining the capacity could be increased provided the meals were reduced. Mr.Barker stated that reducing the number of meals from 158 to 80 moves the establishment away from a classification of a restaurant to one of a tavern,which is not how it is licensed. Mr. Rodriquez stated approximately 80 meals per day are served each weekend,with 30 meals on weekdays. Mr. Barker stated that, procedurally, he advised Mr. Rodriquez to leave the numbers the same on the plat for the Site Plan Review until the Board of County Commissioners heard his request for an increase, and the alternative to compliance with Condition#F is to stay at those numbers. Mr. Barker stated the first issue is the water system, because if the State requires a reverse osmosis system based on the high nitrate levels,it will need to be dealt with in terms of the septic system load. He stated the second issue is that the information from Mr. Hamilton was based on his analysis of the High Plains Engineering evaluation,and if you look at the second page under the paragraph"Limitations,"it states that excavations into the drain field would be required to assess its current condition. Therefore, excavations may need to be done to determine the appropriate numbers to use. Mr. Barker stated a Temporary Certificate of Occupancy may be extended by Board action. Responding to Chair Long regarding the water,Mr.Jiricek stated any water for consumption,including mixed drinks,would have to be from a supplementary supply. Val Vigil,Accountant for Ruben Rodriquez,stated the establishment would actually be reducing numbers by going from 158 to 80,since it has never served over 100 meals per day; therefore,the restaurant would not be reducing what is being served,only reducing the allowed capacity. Commissioner Celle stated concern that,if not for this recent water sample,even with a commitment from Mr.Rodriquez to use bottled water,there is still well water being used in the operation of the establishment in mixed drinks. He stated this facility and the surrounding issues are becoming more and more complicated,and he does not feel comfortable determining appropriate levels without knowing what action the State will require;therefore,he would propose a 180-day extension of the Certificate of Occupancy to allow time for State action. He stated annexation would be nice;however,it appears to be a future event, not an impending one. Commissioner Vaad stated he supports the six month extension,and he has been swayed by the report of the Sheriff's Office;however,he feels it is at its current capacity. He is, however, uncertain how to deal with the use of bottled water for human consumption. Commissioner Masden stated he is also in agreement,and has doubts about increasing the capacity at this time. Responding to Chair Long,Mr.Jiricek indicated the State will make a determination on whether to require bottled water,therefore, no action is necessary by the Board. Mr.Jiricek stated there will probably be a confirmation sample drawn prior to any action being taken by the State. Commissioner Geile stated he did receive a call from an L Minutes, October 15, 2003 2003-2891 Page 4 BC0016 individual in Fort Lupton who was concerned about the number of people in the dance hall, reporting as many as 850 people. He stated Mr. Rodriquez, in his own best interest, should be aware that, with a continued capacity limit of 350,people in the area are watching the establishment,and will not hesitate to call when it appears the numbers are being exceeded. Commissioner Geile moved to extend Condition#F for 180 days, thereby extending the Temporary Certificate of Occupancy for 180 days with the current capacity limitations. The motion,which was seconded by Commissioner Vaad,carried unanimously. Mr. Rodriquez explained that,with the large dance floor,when people are standing on the sidelines instead of being on the dance floor, it appears that too many people are present. PLANNING: CONSIDER REQUEST FOR PARTIAL VACATION OF USR#415 FOR AN OPEN CUT MINE OPERATION FOR GRAVEL - KEITH OLSON, AGGREGATE MINING, C/O FRONTIER MATERIALS: Kim Ogle, Department of Planning Services,stated this request was a Condition of Approval for Recorded Exemption #3523. He said he contacted the Colorado Division of Minerals and Geology,which informed him that the Mined Land Reclamation Permit,Issued in 1980,is inactive. Mr.Ogle stated there is no mining activity on site, and one small pond was created. Commissioner Vaad moved to approve said request for partial vacation of Use By Special Review Permit#415. Seconded by Commissioner Geile, the motion carried unanimously. CONSIDER IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS(PUBLIC ROAD MAINTENANCE),ACCEPT COLLATERAL,AND AUTHORIZE CHAIR TO SIGN,FOR PLANNED UNIT DEVELOPMENT FINAL PLAN,PF#622,THE ESTATES AT HILL LAKE- SHULTZ FARM, INC., C/O STEVE SHULTZ: Mr. Ogle stated staff has reviewed the improvements agreement and found the amounts to be sufficient,therefore,he recommended acceptance. Responding to Commissioner Vaad, Don Carroll, Department of Public Works, stated this does border Weld County Road 13,which is a strategic corridor,and the additional rights-of-way have been considered. Mr.Carroll also stated the power poles have already been moved to the new location. Mr. Carroll further stated he reviewed the agreement and feels adequate quantities and cost Is included to complete the project. Commissioner Vaad moved to approve said agreement,authorize the Chair to sign,and accept collateral as presented. Seconded by Commissioner Geile, the motion carried unanimously. RESOLUTIONS AND ORDINANCES: The resolutions were presented and signed as listed on the consent agenda. No Ordinances were approved. Let the minutes reflect that the above and foregoing actions were attested to and respectfully submitted by the Acting Clerk to the Board. Minutes, October 15, 2003 2003-2891 Page 5 BC0016 • There being no further business, this meeting was adjourned at 10:05 a.m. BOARD OF COUNTY COMMISSIONERS �� WEL UN , COLORADO ATTEST: c D ' . Lo C it Weld County Clerk to the Board r• �EE��J�� Ro ert D. den, Pro-Te ■eputy Cle to the Bo! J Geile EXCUSED William H. HH. Jerke 44 Glenn Vaad Minutes, October 15, 2003 2003-2891 Page 6 BC0016 CITY OF FORT LUPTON '` FORT J CITY COUNCIL Phil Jensen,Mayor r NIS) Ken Clark Ward 3 David Norcross Ward 2 John Newton Ward 3 CO(OtttO Ward1 Gary Mitzel Ward 2 Jimmy Dominguez Ward 1 PvAccounts rn Aeeounteba AM 2000-109 APPLICATION FOR TRANSFER OF OWNERSHIP OF TAVERN LIQUOR LICENSE OF ZADEL'S, 217 FIRST STREET TO CANAS ENTERPRISES, INC. DBA PATRICIA'S MEXICAN RESTAURANT I. Allen die• Council Workshop—August 16, 2000 Council Meeting -August 23, 2000 II. Attachments• a. Application for Transfer of Ownership and supporting documents b. Individual history records c. Police Department's investigation report and recommendation d. Copy of CRS 12-47-307—Persons prohibited as licensees III. Summary Statement• Fernando Canas, 915 S. Hoover Avenue, Fort Lupton, Colorado submitted an application for Transfer of Ownership of Tavern Liquor License of Zadel's, 217 First Street. IV. Fiscal Note: Finance Department Use Only Finance Director V. ________Submitted b • City Clerk VI. Approved for Presentation City Administrator VII. Certification of Council A royal: City Clerk Date 4 ; pAd (e. g 1 31oa CITY OF FORT LUPTON CITY COUNCIL A( 2000-1(`9 (Continued) VIII. Detail of Issue/Request: CRS 12-47-303 (c) provides that transfer of ownership application shall be made to the state and local licensing authorities on forms prepared and furnished by the state licensing authority. In determining whether to permit a transfer of ownership, the licensing authorities shall consider only the requirements of section 12-47-307. A copy 12-47-307 is being provided. IX. Legal/Political Considerations: The local licensing authority may cause a hearing on the application for transfer of ownership to be held. No hearing provided for by this paragraph (c) shall be held by the local licensing authority until a notice of hearing has been conspicuously posted on the licensed premises for period of ten days and a notice of the hearing has been provided the applicant at least ten days prior to the hearing. X. Alternatives/Options: None. XI. Financial Considerations: None. XII. Staff Recommendation: Approve or deny the Transfer of Ownership of Tavern Liquor License of ZADEL'S at 217 First Street, to Canas Enterprises, Inc. C.1) DR 8404 (07/97) Page 1 . COLORADO DEPARTMENT OF REVENUE 21 LIQUOR ENFORCEMENT DIVISION COLORADO LIQUOR 1375 SHERMAN STREET OR 3.2%FERMENTED MALT BEVERAGE DENVER CO 80261 RETAIL LICENSE APPLICATION 0 NEW LICENSE ® TRANSFER OF OWNERSHIP 0 LICENSE RENEWAL • ALL ANSWERS MUST BE PRINTED IN BLACK INK OR TYPEWRITTEN • APPLICANT MUST CHECK THE APPROPRIATE BOX(ES) • LOCAL LICENSE FEE $ • APPLICANT SHOULD OBTAIN A COPY OF THE COLORADO LIQUOR AND BEER CODE(Call 303.321-4154) DO NOT WRITE IN THIS SPACE 1. Applicant is applying as a © Corporation 0 Individual 0 Partnership(includes Limited Liability and Husband and Wife Partnerships) 0 Limited Liability Company 2. Name of Applicant(s) If partnership,list partners'names(at least two);If 0 Association or Other CANAS ENTERPRISES, INC ) corporetlon,nameofcorporetlon 2a.Trade Name of Establishment(DBA) PATRICIA' S MEXICAN RESTAURANT State Sales Tax No. BusinessTeiephone 3. Address of Premises(specify exact location of premises) 4042808 I (303) 857-4035 217 1st STREET City County FORT LUPTON State ZIP Code WELD CO 80621 4. Mailing Address (Number and Street) City or Town SC 915 S. HOOVER AVE. FORT LUPTON ZIP Code CO 5. If the premises currently have a liquor or beer license, 80621 you MUST answer the following questions: Present Trade Name of Establishment(DBA) Present State License No. Present Class of License Present Expiration Date ZADEL'S 14-04960-0001 TAVERN 12-31-2000 �T q�AAX°;3 E4 ( . ! ..L . ... S* t,.,.,+., ,�.a.il{ .".Z ₹; a.9.� 3 '4 1'4:I INIIINErriorli ' o Late Renewal Application Fee tie $50500.00 x!r ❑ Application Fee for New License 0p 'a O Retail Liquor Store License(city) $202.50 ,; L_, Application Fee-New License Concurrent Review....750.00 ❑ Retail Liquor Store License(county) 287.50 r`; 4, (a Application Fee for Transfer of Ownership i ❑ Liquor Licensed Drugstore (city) 202.50 ES P,� O Liquor Licensed Drugstore (county) 287 50 SECTION B 3.2%BEER LICENSE FE ) rV417 ❑ Retail 3.2%Beer On Premises-(city) $71 25 O Beer&Wine License (city) 4 .25 4° l r � � O Beer&Wine License coun O Retail 3.2%Beer On Premises-(county) 92.50 e. (county) 411.25 7 ,' O Retail 3.2%Beer Off Premises-(city) l , i O H&R License O city O county 475.00 i 71 25 , s rgz O H&R License w/opt Prem O city O Retail 3.2/°Beer Off Premises-(county) 92 50 O county 283 00 1 1. 1 I O Club Licensen ; O Retail 3.2%Beer On/Off Premises-(city) 71.25 t• "s = O city ❑acoty 283.75 ❑ Retail 3.2%Beer On/Off Premises-(county) s Tavern License ]city O county 92.50 °• Pr(, O Arts License O city O county 475.00 ,. t O Racetrack License❑city O county 475.00 SECTION C RELATED FEES AND PERMITS 2210-100(999)❑Retell Warehouse Storage Permit $75.00 ' ❑ Optional Premises License O city ❑county..-...475.00 1980-100(999)❑Addition of Optional Premises to existing hoteUrestaurant ,"a ❑ Retail Gaming Tavem LiC ❑ ' $75.00 x Total Fee5. ig ❑ Brew-Pub License eIry ❑county..._...475.00 1970-750(999)❑Manager's Registration(hotel&restaurant only)..i$75.00 t/ O Other No Fee ❑3.2%Beer ONOfI Premises Only Delivery Permit &/ No Fee O Retail Liquor Store Delivery Permit DO NOT WRITE IN THIS SPACE-FOR DEPARTMENT OF REVENUE USE ONLY "`' ";* ou ty t,I t „ ;c" e v c, t J0. ,a'( ar - �''v (Y� a �(„71 pflop„,1 rt0.£f a I . I 0.N`{, r 4:" 4 „' lC °Tr ,-�5 R (999) r , , , , £� TQT, f, d 5 gfsT^.�' (�g �5s �. ,! St tI J 5"# ' / � as f � t •g°i€�P DR 9404(07197) Page 2 APPLICATION DOCUMENTS CHECKLIST AND WORKSHEET Instructions:This check list should be utilized to assist applicants with filing all required documents for licensure.All documents mus be properly signed and correspond with the name of the applicant exactly.All documents must be typed or legibly printed. Upon final State approval the license will be mailed to the local licensing authority. ITEMS SUBMITTED, PLEASE CHECK ALL APPROPRIATE BOXES COMPLETED OR DOCUMENTS SUBMITTED I. APPLICANT INFORMATION ® A. Applicant/Licensee identified. $ B. State sales tax license number listed or applied for at time of application. • C. License type or other transaction identified. ❑ D. Return original&2 copies to local authority. ❑ E. Additional information may be required by the local licensing authority. II. DIAGRAM OF THE PREMISES ca A. No larger than 81/2'X 11-. ❑ B. Dimensions included(doesn't have to be to scale). Exterior areas should show control(fences,walls,etc.). ❑ C. Separate diagram for each floor(if multiple levels). ❑ D. Kitchen-identified if Hotel and Restaurant III. PROOF OF PROPERTY POSSESSION ® A. Deed in name of the Applicant ONLY(or) ❑ B. Lease in the name of the Applicant ONLY. 21 C. Lease Assignment in the name of the Applicant(ONLY)with proper consent from the Landlord and acceptance by the Applicant. ❑ D. Other Agreement if not deed or lease. IV. BACKGROUND INFORMATION AND FINANCIAL DOCUMENTS ® A. Individual History Records)(Form DR 8404-I). a B. Fingerprints taken and submitted to local authority.(State authority for master file applicants.) ❑ C. Purchase agreement,stock transfer agreement,and or authorization to transfer license. ❑ D. List of all notes and loans. V. CORPORATE APPLICANT INFORMATION(It Applicable) ® A. Certificate of Incorporation(and/or) ❑ B. Certificate of Good Standing if incorporated more than 2 years ago. ❑ C. Certificate of Authorization if foreign corporation. • D. List of officers,directors and stockholders of parent corporation(designate 1 person as"principal officer). VI. PARTNERSHIP APPLICANT INFORMATION(If Applicable) ❑ A. Partnership Agreement(general or limited).Not needed if husband and wife. VII. LIMITED LIABILITY COMPANY APPLICANT INFORMATION(If Applicable) ❑ A. Copy of articles of organization(date stamped by Colorado Secretary of State's Office). ❑ B. Copy of operating agreement. ( ❑ C. Certificate of Authority(if foreign company). VIII. MANAGER REGISTRATION FOR HOTEL AND RESTAURANT LICENSES WHEN INCLUDED WITH THIS APPLICATION ❑ A. $75.00 fee. ❑ B. Individual History Record(DR 8404-I). DR 8404(07/97) Page 3 - 6. Is the applicant(including any of the partners,if a partnership;members or manager if a limited liability company;or officers,stock- Yes No holders or directors if a corporation)or manager under the age of twenty-one years? ❑ 7. Has the applicant(including any of the partners,if a partnership;members or manager if a limited liability company;or officers, stockholders or directors II a corporation)or manager ever(in Colorado or any other state); (a) been denied an alcoholic beverage license? ❑ (b) had an alcoholic beverage license suspended or revoked? ❑ (c) had interest in another entity that had an alcoholic beverage license suspended or revoked? ❑ Ea If you answered yes to 7a.b or c,explain in detail on a separate sheet. 8a. Has a liquor license application(same license class),that was located within 500 feet of the proposed premises,been denied within the preceding two years?If'yes,'explain in detail. ❑ fib. Has a 3.2 beer license for the premises to be licensed been denied within the preceding one year?If'yes,'explain in detail. ❑ El 9. Are the premises to be licensed within 500 feet of any public or private school that meets compulsory education requirements of O El Colorado law,or the principal campus of any college,university or seminary? 10. Has a liquor or beer license ever been issued to the applicant(Including any of the partners,if a partnership;members or manager if a limited liability company;or officers,stockholders or directors if a corporation)?If yes,identify the name of the business and list any ❑ El current financial interest in said business including any loans to or from a licensee. 11. Does the Applicant,as listed on line 2 of this application,have legal possession of the premises for at least 1 year from the date that this license will be issued by virtue of ownership,lease or other arrangement? El O O Ownership a Lease O Other(Explain In Detail) a.If leased,list name of landlord and tenant,and date of expiration,EXACTLY as they appear on the lease: Landlord Tenant Expires FERNANDO S MARTHA CANAS _ CANAS ENTERPRISES, INC _ 10-01-2010 Attach a diagram and outline the area to be licensed(including dimensions)Which shows the bars,brewery,walls,partitions,entrances,exits and what each room shall be utilized for in this business.This diagram should be no larger than 8 112'X 11'.(Doesn't have to be to scale) 12. Who,besides the owners listed in this application(Including persons,firms,partnerships,corporations,limited liability companies), will loan or give money.Inventory,furniture or equipment to or for use In this business;or who will receive money from this business. Attach a separate sheet if necessary. • NAME DATE OF BIRTH FEIN OR SSN INTEREST ZADEL ENTERPRISES INC N/A 84-0717685 MORTGAGE HOLDER FRANKLIN C. ZADEL SELLER Attach copies of all notes and security instruments, and any written agreement,or details of any oral agreement,by which any person(including partnerships,corporations, limited liability companies,eta)will share in the profit or gross proceeds of this establishment,and any agreement relating to the business which is contingent or conditional in any way by volume, profit, sales,giving of advice or consultation. 13. Optional Premises or Hotel and Restaurant Licenses with Optional Premises Yes No,y A local ordinance or resolution authorizing optional premises has been adopted. ❑-1} Number of separate Optional Premises areas requested. 14. liquor Licensed Drug Store applicants,answer the following: (a) Does the applicant for a Liquor Licensed Drug Store have a license issued by the Colorado Board of Yes No Pharmacy?COPY MUST BE ATTACHED. O Et, 15. Club Liquor License applicants answer the following and attach: (a) Is the applicant organization operated solely for a national,social,fraternal,patriotic,political or athletic purpose and ❑ fga, not for pecuniary gain? (b) is the applicant organization a regularly chartered branch,lodge or chapter of a national organization which is O O operated solely for the object of a patriotic or fraternal organization or society,but not for pecuniary gain? (c) How long has the club been incorporated? (d) How long has applicant occupied the premises (Three years required) to be licensed as a club?(Three years required) 16. Brew-Pub License Applicants answer the following: (a) Has the applicant received or applied for a Federal Brewers Notice? O O (Copy of notice or application must be attached) Date of Birth Hotel& R 17a. Name of Manager (If this is an application for a Hotel Yes No and Restaurant License,the manager must also submit an Individual History Record(DR 8404-I). O ❑ 17b. Does this manager act as the manager of,or have a financial interest in,any other liquor Yes No licensed establishment in the State of Colorado? If yes,provide name,type of license and account number. O ❑ 18. Tax Distraint Information. Does the applicant or any other person listed on this application and including its partners,officers, Yes No directors,stockholders,members(LLC)or managing members(LLC)and any other persons with a 10%or greater financial interest ❑ in the applicant currently have an outstanding tax distraint issued to them by the Colorado Department of Revenue? If yes,provide an explanation and include copies of any payment agreements. DR 8404(07/97) Page 4 19. If applicant is a corporation,partnership,association or a limited liability company,it is required to list by position all officers and directors, general partners,managing members,all stockholders,partners(including limited partners)and members who have a 10%or greater financial interest in the applicant.All persons listed here or by attachment must submit and attach a DR 8404-I (Individual History Record) and provide fingerprint cards to their local licensing authority. NAME HOME ADDRESS,CITY 8 STATE DATE OF BIRTHW POSITION %ONEI FERNANDO CANAS 915 S. HOOVER AVE FORT LUPTON, C RESIDEN 100% MARTHA CANAS 915 S. HOOVER AVE FORT LUPTON, CO ICE-PRE 0% ISMAEL CANAS 915 S. HOOVER AVE FORT LUPTON, CO TREAS/SE 0% Additional Documents to be submitted by type of entity ® CORPORATION ® Cert.of Incorp. 0 Cert,of Good Standing(If more than 2 yrs.old) 0 Cert.of Auth.(if a foreign corp.) ❑PARTNERSHIP 0 Partnership Agreement(General or Limited) 0 Husband and Wife partnership(written agreement) ElLIMITED LIABILITY COMPANY ❑Articles of Organization O Cert.of Authority(if foreign company) ❑ Operating Agrmt. ❑ ASSOCIATION OR OTHER Attach copy of agreements creating association or relationship between the parties Registered Agent(0 applicable) Address for Service FERNANDO CANAS 915 S. HOOVER AVE FORT LUPTON, CO 80621 t h Y��"' 3F £5 ,✓t i fe ! t7! F1( fi g y,i �, 3.. � Y�$r.?.t,�5/�✓`{'J"a°A7 (+ v r i ri) �� e „ $ ,A�I� 1 13 d ftl �r3�t n.I +t1 „�i`�(r L 6 , �1�ig= 1 ri f � ry iff'5 t','Zi ' i. r ,c. 3^ ill-S ! ijl£l.t-7q{a 1tnI#{ (73 y) ��'� � � � s3� d �(- e r y Auh V ed S 'nature Title / Date r i PRESIDENT 00 y "' 1$`' ..'`i�'a 11: rqt +'TMRg1%+'°e- s8`aril O � S ar , '.�r� T e ; `�g�, ` 4:#63` � 4, e�;s°s �-43-y k � E • Date application filed with local authority Date of local authority hearing(for new license applicants;cannot be less than 30 days from date of application 12-47-311(1))C.R.S. Each person required to file DR 8404-I: Yes No a.Has been fingerprinted b.Background Investigation and NCIC and CCIC check for outstanding warrants conducted c.The liquor licensed premises is ready for occupancy and has been inspected by the Local Licensing Authority. O ❑ O If'no',the building will be completed and ready for inspection by (dale) The foregoing application has been examined;and the premises,business to be conducted,and character of the applicant are satisfactory. We do report that such license,if granted,will meet the reasonable requirements of the neighborhood and the desires of the adult inhabitants, and will comply with the provisions of Title 12,Article 46 or 47,C.R.S. THEREFORE,THIS APPLICATION IS APPROVED. Local Licensing Authority for Telephone Number ❑ TOWN,CITY Signature Title O COUNTY Date ( Signature(attest) Title Date If premises are located within a town or city,the above approval should be signed by the mayor and clerk,if in a county,then by the chairman of the board of county commissioners and the clerk to the board. If,by ordinance or otherwise,the local licensing authority is some other official, then such approval should be given by such official. 1 teams City of Fort Lupton Police Department 130 South McKinley Avenue Fort Lupton, Colorado 80621 (303)857-4011 / Fax: (303)857-2703 Liquor License Transfer of Ownership Canas Enterprises, Inc. d.b.a.: Patricia's Mexican Restaurant Submitted by: Fernando Canas-Loya Currently: Zadel's 217 First Street August 8th, 2000 Criminal History Information Fernando Canas, Ismael Canas and Martha Canas were fingerprinted for this liquor license application and these prints were sent to the Colorado Bureau of Investigation for a criminal history check. The Colorado Bureau of Investigation found no record of any criminal activity based upon the fingerprints submitted on Fernando and Ismael Canas. Results on Martha Canas are still pending. Fernando Canas-Loya I completed a criminal history check and was unable to locate any criminal activity based upon the name: Fernando Canas, DOB: 04-06-59. Our in-house records reveal that Fernando Canas-Loya, DOB: 04-06-59 (same address)was charged and cited into Fort Lupton Municipal court for assault on 05-26-96. Apparently, Fernando got into an argument with James Cordova over the return of a deposit on an apartment that the Cordova's had rented from Mr. Canas-Loya. According to the police report (case# 96-3639), Fernando grabbed James by the hair, pulling it and then grabbed and injured James' index finger. There was mention in the dispatch notes of Fernando being intoxicated, however the officer's report mentions nothing of this. Fernando Canas-Loya originally pled not guilty to this charge and later changed his plea to "no contest"and was ordered to and did pay a$235.00 fine ($110.00 suspended). Martha Canas I completed a criminal history check and was unable to locate any criminal activity based upon the name: Martha Canas or Martha Manriquez(maiden name), DOB: 05-30-55. Page lot 5 (7� • Ismael Canas I completed a criminal history check and was also unable to locate any criminal activity based upon the name: Ismael Canes, These were national, state and local criminal history checks based on CCIC/NCIC records. Driving History Information A drivers license check was completed and reveals the following: Fernando Canes— No record found. Fernando Canas-Loya— Valid on Colorado license# Martha Canas— Valid on Colorado license # Ismael Canes— Valid on Colorado license# A driving history in the State of Colorado and the Fort Lupton Police Department records reveals the following citations or warnings issued: Fernando Canas-Lova Date Final/Violation 07-06-97 Summons—Displayed an expired temporary plate 06-06-99 Verbal Warning—Speeding 07-11-99 Summons—Speeding 10-19 mph over speed limit. Martha Canes Date Final/Violation 10-11-94 Written Warning—Defective vehicle 02-14-96 Summons—Failed to yield to a school bus with flashing red lights Guilty—Careless Driving Ismael Canas Date Final/Violation 06-22-94 Summons—No valid operator license 03-22-96 Summons—Red light violation 10-27-96 Summons— Speeding 5-9 mph over speed limit 12-11-96 Summons—Too fast for conditions Page 2 of 5 0 Ismael Canas (cont.) Date Final/Violation 04-24-97 Driver's License Suspended—excessive points 12-02-97 Driver's License Reinstated 03-03-99 Summons—Speeding 10-19 mph over speed limit 03-19-00 Summons—Speeding 5-9 mph over speed limit It should be noted that the above listed violations could have been a result of a plea bargain, however these are the charges that appear on his Colorado driving history and/or Fort Lupton Police Department records. Liquor License Application /Individual History Record Fernando, Martha and Ismael Canas all failed to complete sections"30 and 31"of the Individual History form. These sections refer to the financial disclosure of the business they are acquiring. Fort Lupton City Clerk,Barb Rodgers advised that this information is forthcoming as they are financing the business through the current owner, Frank Zadel. Fernando Canas-Loya completed section"2" of the Individual History form with only the name of: "Fernando Cams". Mr. Canas-Loya has no driving record or criminal history under the last name of"Canes". He does have a driving record and criminal history under the last name of "Canas-Loya". This information is included with this recommendation. Fernando Canas-Loya completed section"22" of the Individual History form by marking the"NO"box. This section refers to ever being convicted of a crime, or received a suspended sentence, deferred sentence, or forfeited bail for any offense in criminal or military court. As indicated above,Fernando Canas-Loya has been convicted of an assault charge in 1996, Fort Lupton Municipal Court. Providing or failing to provide the information in the previous two paragraphs to authorities is addressed in 12-47-304 C.R.S. and more specifically in the regulations relating to alcohol beverages in the Colorado Code of Regulations, 1 C.C.R. 203-2, Regulation 47-310, paragraph"D" (see attached copies). Additional Fort Lupton Police Department Contacts Residence—915 South Hoover Ave. 1.) Case# 96-5377 - Assist Platteville Police—Attempt to contact—Serve summons to a Ruben Rodriguez—Negative contact with this party at this location. 2.) Case# 96-7090 - Zoning Violation—new river rock and concrete—No action taken. Page 3 of 5 l l' Residence—615 South Fulton Ave. (Previous Cams residence) 3.) Case# 94-4569 - Written Warning—Watering violation 4.) Case# 94-8845 - Welfare Check—No further information available Additional Information Fernando Canas-Loya - I have been unsuccessful in contacting Mr. Canas-Loya's current employer,Micro Motion Inc.. Two calls have been made and messages have been left but I have not received a call back as requested. Martha Canas - I contacted Linda Thomas at Longmont Foods and confirmed that Martha Cams is currently employed with the company and has been employed with them since October, 1979. Ms. Thomas would not release any additional information as to Mrs. Cams' employment with Longmont Foods. Ismael Canas - I contacted Susan Caso at Account Temps and confirmed that Ismael Canas is currently employed with the company. Ms. Caso advised that Ismael is currently assigned to and working with an unidentified company as a temporary employee. This assignment is scheduled to end on 08-31-00. Ms. Caso advised that she has no information available to indicate what type of employee Ismael Canas is and she is not aware of any problems anyone has had with Ismael. Canas Neighborhood I contacted the following residences in the area around the Cams residence of 915 South Hoover Ave: 905 South Hoover Ave. - Contacted Janice Johnson who advised that the Canas' are very quiet neighbors and keep to themselves. She advised that her husband has talked to them in the past. Mrs. Johnson said they have not had any problems with the Canas'. 910 South Hoover Ave. - Contacted Susan Daniel who advised that they have lived across the street for two years and have never met the Canas'. She said they never see them and that they stay to themselves. Mrs. Daniel said the Canas' have never said"hi" and she didn't know their names. Mrs. Daniel advised of no problems with the Canas'. 920 South Hoover Ave. - No answer at the door. 925 South Hoover Ave. - Contacted Jack Stieber who advised that the Canes' are very good neighbors and that they have not had any problems with them. Mr. Stieber advised that he talks to Mr. Canas-Loya quite often and would strongly recommend them for a liquor license. Page 4 of 5 /jv This agency has been unable to locate any substantial information that should prevent Fernando Canas-Loya, Martha Canas and Ismael Canas from being granted a liquor license to • operate "Patricia's Mexican Restaurant", currently known as"Zadel's". Pending the results from C.B.I. on the fingerprint card on Martha Canas and full financial disclosure of the business to the city, this agency recommends approval of the Liquor License Transfer of Ownership to Canas Enterprises, Inc., submitted by Fernando Canas-Loya for "Patricia's Mexican Restaurant", currently known as"Zadel's", located at 217 First Street, Fort Lupton, Colorado. W. Kevin Lillard Investigations Sergeant rove , o n Garay lia Chief of e K Page 5 of 5 / 7) (6)A temporary permit may be canceled,revoked,or summarily suspended if the local or state licensing authority determines that there is probable cause to believe that the transferee has violated any provision of this article or article 46 of this title or • has violated any rule or regulation adopted by the local or state licensing authority or has failed to truthfully disclose those matters required pursuant to the application forms required by the department of revenue.*See Reg.47-304 12-47-304.State licensing authority-application and issuance procedures. (1)Applications for licenses under the provisions of this article and articles 46 and 48 of this title shall be made to the state licensing authority on forms prepared and furnished by the state licensing authority and shall set forth such information as the state licensing authority may require to enable the authority to determine whether a , license should be granted.Such information shall include the name and address of the applicant,and if a partnership,also the names and addresses of all the partners, and if a corporation, association, or other organization, also the names and j addresses of the president,vice-president,secretary,and managing officer,together i with all other information deemed necessary by the licensing authority. Each application shall be verified by the oath or affirmation of such person or persons as the state licensing authority may prescribe. (2)(a)Before granting any license for which application has been made,the state licensing authority or one or more of its inspectors may visit and inspect the plant or property in which the applicant proposes to conduct business and investigate the • fitness to conduct such business of any person or the officers and directors of any corporation applying for a license.In investigating the fitness of the applicant or a licensee,the state licensing authority may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed , by such agency.In the event the state licensing authority takes into consideration ( information concerning the applicant's criminal history record,the state licensing authority shall also consider any information provided by the applicant regarding such criminal history record,including but not limited to evidence of rehabilitation, character references, and educational achievements, especially those items !i pertaining to the period of time between the applicant's last criminal conviction and f• the consideration of the application for a license. } (b)As used in paragraph(a)of this subsection(2),"criminal justice agency"means fj{ any federal, state, or municipal court or any governmental agency or submit of t such agency that performs the administration of criminal justice pursuant to a statute r or executive order and that allocates a substantial part of its annual budget to the administration of criminal justice. ' (3)The state licensing authority shall not issue a license pursuant to this section until the local licensing authority has approved the application provided for in section 12-47-309.*See Reg.47-310 12-47-305.Denial of application. (1)The state licensing authority shall refuse a state license if the premises on which the applicant proposes to conduct its business do not meet the requirements of this article,or if the character of the applicant or its officers or directors is such that violations of this article or article 46 or 48 of this title would be likely to result if a • 32 1 t 4 D.The licensee is subject to applicable provisions of Articles 46 and 47 of this Title and the limitations imposed by these Articles. Regulation 47-310.Application-General Provisions. A.All applications for state licenses forthe manufacture or sale of alcohol beverages • shall be made upon forms prescribed by the Department of Revenue, Liquor Enforcement Division.No application will be considered which is not complete in every material detail,nor which is not accompanied by a remittance in full for the whole amount of the annual state license fee,and eighty five percent of the local license fee.Each application for a new retail license shall contain a report of the local licensing authority of the town,city,county,or city and county,in which the . applicant proposes to conduct its business,which report shall show the opinion of the local licensing authority concerning the reasonable requirements of the neighborhood and the desires of the adult inhabitants with respect to the issuance of the license applied for and the character of a new applicant. fi B.If the applicant for a license is a partnership,except as between a husband and wife,it shall submit with the application a certificate of co-partnership. C.Upon request of any licensing authority,each applicant for license shall provide suitable additional evidence of its citizenship,residence,and good character and reputation,and also of the reasonable requirements of the neighborhood and the desires of the adult inhabitants.Applicants and licensees shall also submit upon request of any licensing authority all required information conceming financial and management associations and interests of other persons in the business,and the deed, lease,contract, or other document governing the terms and conditions of occupancy of the premises licensed or proposed to be licensed. D.All information submitted to any licensing authority,by application for license or otherwise,shall be given fully,faithfully,truthfully and fairly. Regulation 47-312.Change of Location. A.In the event any licensee for the manufacture or sale of alcohol beverages shall desire to change its place of business from that named in an existing license,it shall make application to the Department of Revenue,Liquor Enforcement Division for permission to change location to the place where such license is to be exercised. B.Each such application shall be made upon forms prescribed by the Department of Revenue,Liquor Enforcement Division,shall be verified,and shall be completed in every detail.Each such application shall show thereon the reason for requesting such change,and in case of a retail license;shall be supported by evidence that the proposed change will not conflict with the desires of the adult inhabitants and the reasonable requirements of the neighborhood in the vicinity of the new location.In the case of the transfer of location of a retail license,each such application shall contain a report of the local licensing authority of the town,city,county,or city and county in which the license is to be exercised,which report shall show the opinion of the local licensing authority concerning the reasonable requirements of the neighborhood and the desires of the adult inhabitants with respect to the new location, except that in the transfer of location of a dub license the needs of the neighborhood need not be considered. 93 license were granted,or if in its opinion licenses already granted for the particular locality are adequate for the reasonable needs of the community. (2)The state licensing authority shall not refuse a state license after a local license has been granted,except upon hearing after fifteen days'notice to the applicant and to the local licensing authority.The notice shall be in writing and shall state grounds upon which the application may be refused.If the applicant does not respond to the notice within fifteen days after the date of the notice,the application for a license shall be denied.Such hearing shall be conducted in accordance with the provisions of section 24-4-105,C.R.S.,and judicial review of the state licensing authority's decision shall be pursuant to section 24-4-106,C.R.S. 1247-306.Inactive licenses. The state or local licensing authority,in its discretion,may revoke or elect not to renew a retail license if it determines that the licensed premises has been inactive, without good cause,for at least one year or,in the case of a retail license approved for a facility that has not been constructed,such facility has not been constructed and placed in operation within two years after approval of the license application or construction of the facility has not commenced within one year after such approval. 12.47-307.Persons prohibited als licensee*. (1)(ay Nb'Ilthn*w provided by this article of article 48 or 48 of this title shall be issued 10 (I)Any person until the annual fee therefor has been paid; (II)Anypersonjwho is not ood moral character, f 0 (III)Any corporation,any of whose officers,directors,or stockholders holding ten percent or more of the outstanding and issued capital stock thereof are not of riood moral character; (IV)Any partnership,association, or company,any of whose officers,or any of whose members holding ten percent or more interest therein,are not of good moral character, (V)Any person employing,assisted by,or financed in whole or in part by any other person who is not of good character and reputation satisfactory to the respective licensing authorities; (VI) Any person unless such person's character, record, and reputation are satisfactory to the respective licensing authority; :s/0 / (VII)Any natural person under twenty-one years of age. (b)In making a determination as to character or when considering the conviction of a crime,a licensing authority shall be governed by the provisions of section 24-5- 101,C.R.S. (2) No license provided by this article shall be issued to or held by any sheriff, deputy sheriff,police officer,or prosecuting officer,or the state licensing authority, or any of its inspectors or employees. 33 i Storage Entrance Shop Entrance Kitchen Horseshoe Pit Pinsetter Area Rest Room Rest Room Bowl Lanes Banquet Room Storage Volleyball Court Waitress Liquei r Area __ Room, Entrance Bar Bowling Concourse Entrance Office Parking lot Rest Storage Room Storage Rest Room Pool Rest Room Rest Room Room 217 1st Street Storage Fort Lupton Mechanical Video Insurance Room Roo m Office Office Office Entrance Storage Entrance Commercial Lease 1. Parties. THIS LEASE ("lease") is made on July 24, 2000 between Fernando and Martha Canas (the "Landlord") and Canas Enterprises, Inc. (the "Tenant"). 2. Premises. In consideration of the payment of the Rent and the performance of the promises by the Tenant set forth below, the Landlord leases to the tenant the following described commercial property, with all the appurtenances, situated in the City of Fort Lupton, County of Weld, in the state of Colorado, the address of which is: 217 First Street, Fort Lupton, CO 80621. 3.Term. The Landlord leases the Premises to the Tenant from twelve o'clock noon on the day after the Landlord closes on the purchase of the property described above to October, 01 2010. The Tenant hereby agrees to lease said property contingent upon the closing of the purchase. Upon the Tenant paying the Rent and performing all obligations under the Lease, the Tenant shall enjoy quiet possession and freedom to conduct any business on the Premises. 4. Rent. The Rent for the duration of the lease is $1.00(one dollar) a month. The rent shall be paid in advance on or before the fifth calendar day of every month. 5.Tenant Covenants. The Tenant, in consideration of the leasing of the premises, agrees to the terms below. a). Hold Harmless. The Tenant shall neither hold, nor attempt to hold, the Landlord liable for any injury, damage, claims or loss to person or property occasioned by any accident, condition or casualty to, upon, or about the Premises. b).Utilities. The Tenant shall be responsible for paying all the utilities. The utilities include electric, gas, water, sewer, phone, and refuse disposal. 6. Security Deposit. The Tenant agrees to surrender the property at the expiration of the Lease in as good a condition as when the Tenant entered the Premises. As security therefore and performance of all other terms of the Lease, a Security Deposit in the amount of$1.00 (one dollar)has been paid by the Tenant. The Security Deposit shall be returned to the Tenant without interest 15 days after the termination of the Lease. Landlord: a/!v/ Tenant:f( pve=c.. �o1�T ernando Canas anas Enterprises,Inc Landlord: ( �� Marth Canas Address: 915 S. Hoover Ave Fort Lupton, CO 80621 • Aug. A. 2000 2:44PM STGCO BRIGHTON N . 0919 P. 5/9 The puwwpaln.n of An Ai.peweehy ( to Coarse Reel&We CommMden fro r2-b96) • iv TIIIS FORM IS USED IN A CONSUMER CREDIT TRANSACTION,CONSULT LEGAL COUNSEL. THIS IS A LEGAL INSTRUMENT. IF NOW UNDERSTOOD,LEGAL,LUX OR UTIIP,R COUNSEL.SHOULD BE COlvstn. E.D BEFORE SIONJNtt• • • DEED OF TRUST (Due on Transfer-Strict) THIS DEED OF TRUST IS MADE THIS 6th day of September 2000. between Fernando Canaa and Martha Canes (Borrower),whose address is 915 Hoover Avenue, Fort Lupton, CO 80621 ;and the Public Trustee of the County in which die Property (sett paragraph I)is situated(Trustee);for the benefit of Zedel Enterprises, Inc., a Colorado Corporation its ,(Lender), whose address is 305 10th Street, Fort Lupton, CO 80621 Borrower and Lender covenant and agree as follows: I. Property In Trust Bmmwer, in consideration of the indebtedness herein recited and the trust betel° created, beteby grunts and conveys to Trustee in trust,with power of sale,the following described property located In the Cuuuly of Weld ,SHae of Colorado: Parcel 1: • • All that part of the West 1/2 of the Northeast. 1/4 of Section 6, in Township 1 North, of Range 66 West of the 6th P.H., Weld County, Colorado, described as follows: Beginning at a point 319.5 feet West of the Southeast corner of the West 1/2 of the Northeast 1/4 of said Section 6, thence Erse 150 feet, thence North' 409 feet; thence West 150 Lest; thence south 409 feet to the point of beginning, except that portion of the above described property platted as the Homestead, recorded July 9, 1902 in Book 972 at Reception No. CONTINUED which has the address of 217 let Street, Fort Lupton, CO 80621 (Property Address),together with all its appurtenances(Property). 2. Note;Other Obligations Secured. This Deed of Trust is given to secure to Lender: A. the repayment of the indebtedness evidenced by Borrower's note (Note) dated . September 6, 2000 , In the principal sum oi$680,000.00 U.S.Dollars,with interest on the unpaid principal balance from september 6 2000 , until paid, at the tato of 9.250 percent per annum, with principal and interest payable at 305 lath Street, Fort Lupton, CO 80621 or such other place as the Lender may designate,in 120 payments of FIVE THOUSAND FIVE HUNDRED NINETY FOUR AND 19/100 •. DOLLARS (U.S.S 5,594.19 day on the 1st day of each Month beginning October 1, 2000 ;such payments to continue until the entire indebtedness evidenced by said Note ix fully paid; however, if n01 sooner paid, the entire principal ;mount outstanding and accrued interest thereon, shat be due and payable on 911/2010 and Borrower Is to pity m Lender a late charge of 5.000 %of any payment not received by the Lender within 10 days after payment Is due: and Borrower has the right to prepay the principal amount outstanding under said Nuts,in whole or in part.at any time without penalty except NONE 8. the payment of all other suing,with Interest thereon at 14.000 %,per annum,disbursed by Lender in accordance with this Deed of'trust to protect the security of this Deed of Trust;and C. the performance of the covenants and agreements of Borrower herein contained. 3 'I'll I.. Borrower covenants that Borrower owns and has the right to grant and convey the Property, and warrants title to the stone, subject to general real estate tuxes for the current year. easements of record or in existence, and recorded declarations,restrictions,reservations and covenants,If any,as of this date, 4. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, and late charges as provided in the Note and shall perform all of Borrower's Other COvelanis contained in the Mole. 5. Application of Payments. All payments received by Lender under the icons hereof shall be applied by Lender first in payment of amounts due pursuant to paragraph 23 (Escrow Funds for Taxes and Insurance), then lu amounts disbursed by Lender putsunnt to paragiaph 9 (Protection of Lender's Security), and the balance in accordance with he terms and conditions of the Note. 6. Prior Mortgages and Deeds or Trust;Charges;Liens. Burrower shall perform all of Borrower's obligations under any {' prior deed of trust and any other prior liens. Borrower shall pay all laces,assessments and other charges,fines and Impositions \ atuibuable to die Property which may have or attain a priority over this Deed of Trust, and leasehold payments or growl rents, • if any, In the 'flannel set out in paragraph 23 (Escrow Funds for Taxes and Insurance)or, if not required to be paid In such manner, by Borrower making payment when duo, directly to the payee thereof. Despite the foregoing, Burrower shall not be required to make payments otherwise required by this paragraph If Borrower, after notice to Lender,.shell in good faith contest such obligation by,ur defend enforcement of such obligation in,legal proceedings which operate to prevent the enforcement of the obligation or forfeiture of the Property Or any part thereof,only upon Burrower making all such contested payments and other payments as ordered by the court to the registry of the court in which such piocceilings am pled. Fe.TO'2-1.96. DEED or Tyra(Due nn r,nnrte•%wa) ��. ,Pqe I urn 11.91 DCDone filer tOla'62Aa0 Aug. 9. 2000 2:45PM STGCO BRIGHTON No. 0918 P. 6/9 7. Property Insurance. Borrower shell keep the improvements now existing or hereafter erected on the Properly insured opium loss by fire or hazards Molested within the term extended coverage' in en amount at least equal to the lesser of (I) the insurable value of the Property or (2) en amount sufficient to pay the sums securedby this Deed of Trust as well ax any prior estcumhrnnees on the Property. All of the foregoing shall he known as"Property Innosnce. The insurance carrier providing the insurance shall be quaiifed to write Property Insurance in Colorado end shall be chosen by Borrower subject to Lender's right re reject the chosen carrier for reasonable cause. All insurance policies and renewal* thereof shall include a slander) mortgage cause in favor of Lender, end shall provide that the insurance carrier shall notify Lender at leas( ten 110) days before cancellation, termination or any material change of coverage. Insurance policies shell be furnished to Lander Cl or before closing. Lender shall have(he tight to bold the policies and renewals thereof. In the event of It,,,, Borrower shall give prompt notice to the Laurance currier and Lender. Lander may make proof of lute if not made promptly by Borrower. Insurance proceed* shall be applied to restoration or repair of the Property dannnged, provided such restoration or repair Is economically feasible and the security of Ibis Deed of Trust Is not thereby imparted. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds shall he applied to the sins secured by this Deed of Trust. with the excess, if any, paid to Borrower. If the Properly is abandoned by Burrower, or If Borrower fails to respond to Lender within 3U days from the date notice is given in accordance with paragraph 16 (Notice) by Lender to Borrower (hut the insurance carrier offers to Menlo a claim for insurance benefit*. Lender is authorized to collect and apply the insurance proceeds,at Lender's option.either to restoration or repair of the Property or In Use rums secured by this Deed of Must. Any such application of proceeds In principal shall not extend or pompoms the clue date of the installment', referred In in paragraphs 4 (payment of Principal and Interest) and 23 (Escrow Funds for taxes and Insurance) or change the amount of such otstellmente. Notwithstanding anything heroin to the contrary, If under paragraph IS (Accelesatien; Porecfor ore; Other Remedies) the Property is acquired hy Lender, all right, title and interest of Borrower in and to any Insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition ;boll pass to Lender to the extent of the mans secured by this Deed of Trust immediately prior to such sale or acquisition. All or the rights of Borrower end Lender hereunder with respect to insurance carriers. istsurmmo policies and insurance proceeds are subject to the rights of any holder of it prior deed of truss with respect to said insurance carriers, policies std premeds. It. Proservsdion and Mnintanauee of Property. Borrower shall keep the Property It: good repair and shall not commit carne fir permit impairment or deterioration of the Property and shell comply with the provisions of any lease if this Deed of Tram is on a leasehold. Borrower ,Shall perform all of Borrower's obligations under any declarations, covenants, brit sem, rules. or other documents governing the use,nwnaahtp or occupancy of the Property, 9. l'roteeliut attendees Sectarlty. Except when Borrower has exercised Barroner's rights under paragraph 6 above, if the Borrower fails to perform the covenants and agreements cuntalned in this Deed of Trust. or if a default occurs in a prior lien or if tiny action or proceeding is commenced which materially affects Lender's interest in the Property, then Lender, et Lender's option, with notice to Borrower if required by law, may make such appearances. diaburs*seen sums sad take such action as ie necessary to protect Lender's interest. including, but not limited to: (a) any general or special taxes or ditch or water assessments levied or accruing against said property; (h) the premiums an any insurance necessary to protect any improvements aompriring a part of sueir Property; (c) nuns doe on any prior lien or encumbrance on such property: (d) if the property is a leasehold or it subject to a lease, *II sums due undue such lease; (e) the reasonable costs and expenses of defending. protecting, and maintaining such property and Lender's interest in such property inoloding repair and maintenance coals and expenses. costs and expenses of protecting end recuring the property, receiver's feet and expenses. Inspection few, appraisal fees, court costs attorney fees, mud feet and costs of an attorney in the employment of the Lender, (D all other costs and expenses allowable by the evidence of debt or this deed of trust, and (g) (Melt other tulle and expenses which may he ntthttria.ed by a court of competent jurisdiction. r harrower hereby assigns to Lender any right Borrower may have by reason of any odor encumbrance on the Property or by law or otherwise to curt any default under said prior encumbrance. Any amounts dtahuned by Lender pursuant to this paragraph 9, with interest thereon, shall become addilional indebtedness of Borrower secured) by this Dad of Trust. Such moms shall be pnyahte upon notice from Lender to Borrower requaling payment thereof, end Lender may bring suit (o collect any amounts no disbursed plus interest specified in paragraph 29 (Note: Other Obligations Seemed). Nothing contained itt this paragraph 9 shall require lender to incur any expense or take any action hereunder. Id.Inspection. Lender may make or cause to he made reasonable entries upon and inspection of the Property. provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. If. Condemnatlnn. The proceeds of any award or claim for dmmngcx, direct or consequential. in connection with any condemnation or other inking of the Property, or part thereof, or fur conveyance in lieu of condemnation, are hereby assigned and shell he paid to Lender as herein provided. Flowerer, all of the rights of Borrower end Lender hereunder with respect to such proceeds are subject to the rights of any holder of a prior deed of trust In the event of a total taking of the Property, the proceeds shell he applied to the sums secured by this Deed of Trust, with the excess, if any, paid to Borrower. In the event of a partial taking of the Property, the proceeds remaining atter taking out any part of the award due and prior heat holder (net award) shall be divided between Lender and Borrower. In the same rare as the amount of the sums secured by this Deed of Trust immediately prior to the date of taking hears to Borrower's equity in the Property Immediately prior to the date or taking, Borrower's equity in the Property means the fair market value of the Property less the amount of sans secured by both this Deed of Trust end all prior liens (except taxes) that ire to receive any of the award, all at the value Immulistuly prim to the slate of taking. If the Property is abandoned by Borrower. or if, after notice by Lender to Borrower that the condemnor offers to make an toward or settle a claim for damages, )Borrower fails to respond to Leader within 3U days after the dose seen notice is given. Lander is authorized lo collect and apply the proceeds, et Lender's option, either to restoration or repair of the Property or to the soma secured by this Dead of Trust. Any such implication of proceeds to principal shell not extend or postpone the Jut date of the ittatdiments referred to in para- graphs 4(Payment of Principal and Interest)and 23(Escrow Funds InrTaxes and Insurance)nor change the amount of such instalhnetaa, 12. Burrower Nut Relented. Eamnaiou of the limo for payment or mndificetinn of amortization of the sums secured by this Deed of True( granted by Lender to soy successor in interest of Borrower shall not operate to release, in any manner. the II•ahility of the original Borrower, nor Borrower's successors in interest, Conn the original teens of this Deed of Trurt. Lender shell not be required to commence proceeding, against such successor or refuse to extend Thee for payment or otherwise modify untoetization'of die sums meowed by this Deed of Treat by reason of any demand made by Oho u:i5inal Borrower nor Borrower's snccessun in interest. I,,. [forbearance by Lender Not a Waiver. Any forbearance by Lender in exercilia' any right or remedy hereunder, or otherwise Wonted by law,shall not he a waiver or preclude the exercise of any such right or remedy. Id. Remedies Cumulative. Poch remedy provided Its the Note and this Deed of Trust of distinct from and cumulative to all other rights or remedies under the Note and this Deed of Trust nr afforded by paw or equity, and may be exercised concurrently, independently or successively. IS.Succesors and Assignor Bound;,joint and Several Liebillty Captions. The covenants ail agreements herein contained .hall bind. end the rights hereunder shall insure to, the respective successors and assigns of Lender and Borrower, pdrdecl to the provisions of paragraph 24 (Transfer of the Property: Assumption). All covenants anti agreements of Borrower .help he joint and several. Tire captions and headings of the paragraphs in this Dcnl of TRW are for convenience only end aro note to he used to intersect or define the provisions hereof. 16. Notice. Except for any notice required by law to be given its soother mamas, (a) any notice In Burrower provided for in this Deed of Trost shall he in writing and shall be given and be effective upon (I) delivery to Borrower or (2) mailing such notice by first-class U.S. onion, addressed to Bnsowee at Borrower's address stated herein or art such other address as Borrower may designate by notice to Lender as provided herein, and (h)any notice to ,under shall be in writing and shell be given and he effective upon (I) delivery to Lender or (2) mailing such notice by Aral-class 0.5, snail, to Lender's address stated herein or to such ether address as Lender may designate by nonce to Borrower as provided herein. Any notice provided for in this Deed of Trust shall be deemed to have been given to borrower or Lender when given in any manner designated herein. 17. envendng Law;Sever-ability. The Note and this Deed of Trust shall be governed by the law of Colorado. In the event that any provision or clause of this Deed of Trust or the Nnte conflicts with the law, such conflict shall not affect other provisions of this Deed of Trnat or the Note which cat be given effect without the conflicting provision, and to thin end the provisions of the Deed of Trust said Note arc declared to be severable. lit.e tlnln62Aea 2.0 0i110771f Ci Aug. 9. 2000 2:46PM STGCO BRIGHTON No. 0916 P. 7/9 • IN. Acceletmlon:Foreclosure;Other Remedies. Except 's provided in paragraph 14 (Trans ler of the Property Assumption). upon borrower's Inroad' of any covenant or agreement of Borrower in this Deed of Trust, or upon any default In n prior lion upon the Properly, (tinker Borrower has exercised Rorwswer'n rights.under paragraph 6 above). at Lender's option, ell of the sums secured by thin Deed of Trust shall be immediately due and payable (Acceleration). To exercise thin option, Lender m.y invoke the power of sale end any other remedies permitted by law. Lender *hull be entitled to milled all reasonable costs and expenses Incurred in pursuing the remedies provided in this Deed of Trust, including, hut not limited to. resennab le attomey s fees. If Lender invoke* the power of isle, Lender shell give written notice to Trustee 101 such election. Trustee shall give such notice to Narrower of Borrower's rights as is provided by law. Trustee shall record a copy of such notice as required by law. Trustee shat) advertise the time and piece of the sale of the Property, fin not less than four weeks in a newspaper of general circulation in each county in which the Property is situated, and shell mail copies of such notice of sale to Borrower end other person, us prescribed lay law. After the lapse of such lime es may be required by law. Trustee. without demand on Borrower. rind! sell the Property at public auction to the highest bidder for cash at the lime end place (which may be on the Property or any pert thereof es permitted by law) in one or more parcels as Trustee may think beet and in such order as Trustee may determine. I.ender or Lender's designee may purchase the Property at any sale. It shall nor he obligatory upon the purchase at any such sale to ma to the application of the purchase money. Trustee shall apply the proceeds of the sale in the following order (a) to all reasonable coats and expenee,' of the sale. including, hut not limited to, reasonable Trustee's and albmicy's fees end eats of title evidence: (IQ to all secured by this Deed of Trust:end(c)the excess.if any to the pereon or perum legally entitled thereto. 19. Borrower's RI/bite Clare Default Whenever foreclosure is commenced for no eminent of any elms due hereunder, the owners of the Property or parties liable hereon shall be entitled to cure said defaults by paying all delinquent principal and interest payments due as of the date of cure, costs, expenses, late charges. attorney's fees end other fees all In the manner provided by law. Upon such payment, this Deed of Trust and the obliel dion, secured hereby shall remain in full force end effect as though no Acceleration hod occurred,and the foreclosure proceedings shall he discontinued. 20.Assignment of Renl;Appoletmenlof Raelrar;Lander In Poseenrlon. As additional security hereunder, Borrower hereby assigns to fender the rents of the Property; however, Borrower shall. prior to Acceleration under paragraph IS (Acceleration: Foreclosure; Other Remedies) or abandonment of the Properly, have, the right to collect end retain such rents as theyy become due end payable. Lender or the holder of the Trustee's certificate of purchase shall be untitled to a receiver for the Properly after Acceleration under paragraph IN (Acceleration; Foreclosure; Other Remedies). and shall sloe be so entitled during the tine covered by foreclosure proceeding* and the period of redemption, if any; and shell he entitled thereto as a molter of right without regard to the solvency or insolvency of Borrower or of the then owner of the Property, nod without regard In the value thereof. Such receiver may he appointed by any Court of competent jurisdiction upon ex parse epplicatten and without notice - notice being hereby expressly waived. Upon Acceleration under parnysplr IN (Acceleration; Poreclosure: Other Remedies) or abandonment of the Property, Lender, in person, by sigma or by judicially-appointed receiver, shell be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those peat due. All rents collected by Lender or the receiver abai) he applied, first, to payment of the costs of preservation and managcrneut of the Property, second, to payments due upon prior hen. and then to the sums secured by this Deed of Treat. Lender and the receiver shall he liable to account only for those rents money received. 21.Release.Ulan payment of all rem secured by this Deed of Trust, Lender shall cause Trustee to release this Deed of Trust and shell pmcbmc fur Trustee the Note. Borrower shell pay all costs of recordation and shell pay the statutory Trustee's fees. If lender shall trot produce the Note es aforesaid. then Lander, upon notice in accordance with paragraph )6 (Notice) from Borrower to fender, shall obtain, at fender's expense, and file any lust irreverent bond required by Trustee or pay the cost (.• thereof to effect the mleasu of this Deed of'front. 22. Waiver of Rxemptlons. Borrower hereby waive; all right of hoincaicad sod any other exemption in the Property under state or federal law presently existing or hereafter enacted. 20. Escrow Fund,for Taxes end insurance. This paragraph 23 lo not tippleable if funds as defined below are being paid remount to a prior encumbrance. Subject to applicable law. Borrower shell pay to Lender, on each day installments of principal end interest ate payede under the Note. until the Note is paid in full, a sum ()Weill referred to en 'Pu ede) equal to N/A the yearly taxes end assessment;which may attain priority nvm this Deed of Trust,plus N/A of basis ofmammenu end bele endemium installment. nr reasossibleeBastes thereof,alon all•u e into remarkably Initially n and from r shots time by Lender on the g yesae net ormerte o i. The principal of the Funds shall be hold in a separate account by the Lender in trust fir the benefit of the Borrower and deposited in an institution the deposits or accounts of which are Insured or guaranteed by a federal or state agency. Lender shell apply the Fonds to pay aid taxes. essevsm ms.ente and insurance premium Lender may not charge for so holding and applying the lends, analyzing said account or verifying and compiling said assasme to and bills. Lender shall not be required be pay Borrower any interest or corning, on the funds. Lender shall give to Borrower, without charge. en ennoel accounting of the Funds showing credits and debits to the Ponds and the purport for which each debit to the Ponds woe made, The Ponds are pledged as additional security for the sums secured by this Deed of Trust. If the amount of the Funds held by lender shall not be anffctenl to pay taxes, nnseseinents and insurance premiums as they fall • doe. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 dnya from the date melee If given in accordance with paragraph 16 (Notice) by Lender to Borrower requesting payment thereof. Provided however. if the loan secured by this deed of trust is subject to RBSPA nr other laws regulaing Peerow Accounts. such deficiency, surplus on any other required edjuatineet shell be plaid,credited or adjusted in compliance with such applicable lawn, Upon payment in full of all manes secured by this Deed of Trost. Lender shell atnmltenetsunly refund o Borrower end Funds held by tender. If under paragraph IR (Acceleration: Foreclosure; Other Remedies) the Property is sold or the Property Is alherwbte acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquleltlan by Lender, whichever occurs first, any Punde held by Lender et the time of application we as credit against the sums secured b) this Deed of Trml. 1.4.Transfer of the Property;Assumption. The following events shall lie referred In herein as a 'Transfer': (i) a transfer nr conveyance of title (or any portion thereof, legal or equitable) of the Properly (or any part (hereof or interest therein), (II) the execution of n contract or egreemed creating a right to title (or any portion thereof, legal or equitable) in the Property (or any pert thereof or interest therein). (iii) or an agreement granting a prsseasury right in the Property err any portion thereof). In excess of three (3) years, (Iv) a sale nr transfer of, or the execution of a contract or agreement cresting a right to acquire nr receive, snore than fifty percent (50%) of the ennnolling interest or more than fifty percent (50%) of the beneficial inured in the Borrower, (v) the reorganization, liquidation or the dissolution of the Harrower. Nut m he included as a Transfer ere (i) the creation of a lien of encumbrance rubordinere to this Deed of Trust. (ii) the creation of a purchase money security interest for household appliance,. or (iii) a transfer by devise, descent or by operation of the Isle upon the death of a joint tenant. At the election of Leader,in the event et each and every TrawUer: (a) All sums secured by this(hell of Trust shall become immediately due and payable(Acceleration). th) If a Transfer occurs and should Lender not exercise Lender's option pursuant to this paragraph 24 in Accelerate. Transferee shall he Meted to have assumed all of the obligations of Borrower under This Deed of 'fleet including all sums secured hereby whether ear not the ioshwnenl evidencing such conveyance, contract or grant expressly so provides. Thin rnvveret shall roe with the Property and remain in full force and effect until said sums arc paid in full. The Lender may without notice to the Borrower deal with Transferee in the sumo manner as with the Borrower with reference to sold sums including the payment or credit to Transferee of undisbursed reserve Funds on payment in full of said sums. without in any way altering or discbeging the Borrower's liability hereunder for the obligations hereby secured. { (c) Should Lender not elect to Accelerate upon the occurrence of such Transfer then, subject to (h) above, the mere feet of lapse of lime or the ucceptenet of payment subsequent to my of such • eats, whether or nut Lender had actual or constructive ,wtiee of such Transfer, shall nal be deemed a waiver of Lender's right to drake such election nor shall Lender be Mopped therefrom by virtue thereof, The issuance on behalf of the Lender of a routine statement showing the sterna of the loan, whether or not Lender lied actual or cmutructve notice of such Transfer,shell not bee waiver or estoppel of Lchdcr's said rights. 2,5. Buttower's Copy, Borrower acknowledges receipt of a copy of the Note and this Deed of Trust. rata 1101 MMMMem /��r[,� mum Aug, 9. 2000 2:47PM STGC0 BRIGHTON No. 0918 F. 8/9 EXECUTED BY BORROWER: tlartha Canes -- Fernando Canes \, STATE OF Colorado sic COUNTY OP Adams The foregoing instrument was acknowledged before Inc this 6th day of September , 2000 ,by Fernando Canes and Martha Canes WITNESS my band and official sea. MycommissloaoxFirec June 22, 2001 'MALI Brenda I,. Archuleta Notary Public filar Vol!61AeO 7t) Aug, 9. 2000 2:46PM STGCO BRIGHTON Na, 0918 P. 9;g (1. 217 let Street • CONTINUATION OF LEGAL DESCRIPTION 1897025, Weld County Records, County of Weld, State of Colorado. Parcel 2: That part the West 1/2 of the Northeast 1/4 of Section 6, Township 1 North, Range 66 West of the 6th P.M., in the Town of Fort Lupton. Weld County, Colorado, described as follows: Beginning at the Southeast corner of the west 1/2 of the Northeast 1/4, thence North 204,5 feet: thence West 169.5 feet: thence South 204,5 feet to the South line of the Northeast 1/4; thence East 169.5 feet to the point of beginning. Except the East 20 feet thereof, being Fulton Street, (See Requirement No, 1, Schedule B - Section 1, herein) County of Weld, State of Colorado. hit$ 001Ai62A06 /4 i Zadel & Associates Realty 311 Grant Ave. • P. O. Box 90 Firestone, Co. 80520 r.. Phone: (303) 833-3012, Fax: (303) 833-3054 1 he printed portions of this form have been approved by the Colorado Real Estate Commission.(CBS 2-9-99) THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) (SELLER OR PRIVATE FINANCING) Date: July 07, 2000 1. AGREEMENT. Buyer agrees to buy and the undersigned Seller agrees to sell the Property defined below on the terms and conditions set forth in this contract. 2. DEFINED TERMS. a. Buyer. Buyer, Fernando Canas Martha Canas will take title to the real property described below as El Joint Tenants O Tenants In Common O Other n/a b. Property. The Property is the following legally described real estate: ' Part of the west 1/2 of the NE 1/4, Section 6, Township 1 North, Range 66 west beginning at a point 319.5' west of the SE corner of the west 1/2 of the NE 1/4 then north 409', east 150' , south 409', west 150 to the point of beginning excluding the Homestead Subdivision and beginning at the SE corner of the west 1/2 of the NE 1/4 north 409' west 169.5' , south 409' , east 169.5' except beginning 204.5' north from the SE corner of the west 1/2 of the NE 1/4 west 169.5' , north 204.5', east 169.5', south 204.5' to the point of beginning (/ the County of weld ,Colorado, commonly known as No. 217 1st Street Ft. Lupton, CO. 80621 Street Address City State Zip together with the interests, easements,rights, benefits, improvements and attached fixtures appurtenant thereto,all interest of Seller in vacated streets and alleys adjacent thereto,except as herein excluded. c. Dates and Deadlines. Item No. Reference Event Date or Deadline I §5a Loan Application Deadline n/a 2 § 5b Loan Commitment Deadline n/a 3 § 5c Buyer's Credit Information Deadline n/a 4 §5c Disapproval of Buyer's Credit Deadline n/a 5 §5d Existing Loan Documents Deadline n/a 6 §5d Objection to Existing Loan Deadline n/a 7 §5d Approval of Loan Transfer Deadline n/a 8 §6a Appraisal Deadline n/a 9 §7a Title Deadline Jul 10 7a July 12, 2000 Survey Deadline n/a 1 I §7b Document Request Deadline - 12 § 8a Title Objection Deadline July 14, 2000 July 19, 2000 Ij 8b Ott-Record Matters Deadline July 14, 2000 14 § 8b Off-Record Matters Objection Deadline July 19, 2000 15 § 10 Seller's Property Disclosure Deadline July 10, 2000 16 § 10a Inspection Objection Deadline July 14, 2000 17 § 10b Resolution Deadline July 19, 2000 18 § I l Closing Date August 15, 2000 § 16 Possession Date 1 § 16 Possession Time date of closing time of closing CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99 RealFA$T®Forms,Box 4700,Frisco,CO 80443, Version 6.03,CIRealFA$T®,2000;Reg#PCOCOL222700 Completed_bJy-GREG ZADEL,BROKER,GRI,CRS,Zadel 8 Associates Really C Buyer(s) ,y C 07/06/00 17:01:03 /^/Pagejot8 00 Sellertoec_3 _ CDC - .Ji t 111 .X NNN��` .!'S 21 §28 Acceptance Deadline Date July 07, 2000 • 22 §28 Acceptance Deadline Time noon n/a n/a n/a ( n/a n/a n/a n/a n/a n/a d. Attachments. The following exhibits,attachments and addenda are a part of this contract: n/a e. Applicability of Terms. A check or similar mark in a box means that such provision is applicable. The abbreviation "N/A" means notapplicable. 3. INCLUSIONS AND EXCLUSIONS. a. The Purchase Price includes the following items (Inclusions): (1) Fixtures. If attached to the Property on the date of this contract, lighting, heating, plumbing, ventilating, and air conditioning fixtures, inside telephone wiring and connecting blocks/jacks,plants, mirrors, floor coverings,intercom systems, sprinkler systems and controls,and all equipment for bowling lanes, pool tables, chip vending machine, candy machine, cigarette machine, outside lighted signs, volleyball court and equipment, telephone system, bowling ball drilling equipment, CD juke box, spare parts for pin setters, restaurant equipment including tables, chairs, dishes, silverware, kitchen equipment, bar equipment including ABC computer bar, beer coolers, walk-in coolers, washer, dryer, copier in lanes, cash registers, bowling lockers, bowling pins, lane washer and oiler, ladders, portable DJ bar, electric welder, pin setter hand tools, computer in bowling lanes, TV's, smoke eaters, stereo system in restaurant, tables and chairs in bar and bowling lanes, time clock, shuffleboard table, keg cooler/tap, pool table lights, beer lights/plaques/mirrors, service bar, coat rack, patio furniture, front offices in bowling lanes furniture, fire extinguishers. (2) Other Inclusions. If on the Property whether attached or not on the date of this contract: storm windows, storm doors,window and porch shades,awnings,blinds,screens,window coverings,curtain rods,drapery rods,storage sheds, and all keys. Check box if included: O Smoke/Fire Detectors, 0 Security Systems; and n/a (3) Trade Fixtures. With respect to trade fixtures, Seller and Buyer agree as follows: n/a b. Instruments of Transfer. The Inclusions are to be conveyed at Closing free and clear of all taxes, liens and encumbrances,except as vided in § 12. Conveyance shall be by bill of sale or other applicable legal instrument(s). c. Exclusions. The following attached fixtures are excluded from this sale: bottle decanter collection, MR ZS paintings; insurance office fixtures, business and equipment; F.Zadel office furniture. The following items are excluded and are leased from 3rd parties: bar soda gun & equipment, Pepsi dispenser in waitress area, ice machine, coffee and hot chocolate equipment, pinball machines, fooseball table, vending machines, toy vending machine, 2 Pepsi vending machines video games, poker machine, dart machines, pizza oven behind bar, pay phone, trash dumpster, visa machine. 4. PURCHASE PRICE AND TERMS. The Purchase Price set forth below shall be payable in U.S.Dollars by Buyer as follows: Item No. Reference Item Amount Amount 1 §4 Purchase Price $ 760 000.00 2 §4a Earnest Money $ 3 §4b New Loan 5,000.00 4 §4c Assumption Balance n/a 5 §4d Seller or Private Financing n00 6 §4e Cash at Closing 680,000.00 7 TOTAL75,000.00 760,000.00 760,000.00 a. Earnest Money.The Earnest Money set forth in this Section, in the form of a personal check ,is part payment of the Purchase Price and shall be payable to and held by Zadel Realty , in its trust account, on behalf of both Seller and Buyer.The parties authorize delivery of the Earnest Money deposit to the Closing Company,if any, at or before Closing. b. New Loan. [Omitted-Not Applicable] c. Assumption. [Omitted-Not Applicable] d. Seller or Private Financing.. Buyer agrees to execute a promissory note payable to: CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99 RealFA$T®Forms,Box 4700,Frisco,CO 80443, Version 6.03,ORealFA$T®,2000:Reg#PCOCOL222700 Completed b -GREG ZADEL,BROKER,GRI,CRS,Zadel&Associates Realty Buyer(s) //[1 G 07/06/00 17:01:03 ge 2 of 8 re).)--) Seller(s) 3 it 7e45._ seller as ®Joint Tenants O Tenants in Common O Other p/a ,on the note form as indicated: ' fI] (UCCC- No Default Rate)NTD 82.3-95 II ®(Default Rate) NTD 81-11-83 ( Other n/a secured by a 1st (1st, 2nd, etc.) deed of trust encumbering .ae Property, using the form as indicated: ®Strict Due-On-Sale (TD 72-7-96) O Creditworthy (TD 73-7-96) O Assumable - Not Due On Sale (TD 74-7-96) O Other p/a Buyer ®Shall O Shall Not execute and deliver, at Closing, a Security Agreement and UCC-1 Financing Statement granting the holder of the promissory note a 1st (1st,2nd,etc.) lien on the personal property included in this sale. The promissory note shall be amortized on the basis of 3O ®years O months,payable at$ 5,594.19 per month including principal and interest at the rate of 9.25 % per annum. Payments shall commence October 01, 2000 and shall be due on the 1st day of each succeeding month. If not sooner paid,the balance of principal and accrued interest shall be due and payable 10 years after Closing. Payments O Shall ® Shall Not be increased by 1/12 of estimated annual real estate taxes, and O Shall ® Shall Not be increased by 1/12 of estimated annual property insurance premium.The loan shall also contain the following terms:if any payment is not received within 10 calendar days after its due date,a late charge of 5 % of such monthly payment shall be due. Interest on lender disbursements under the deed of trust shall be 14 %per annum. Default interest rate shall be 14 % per annum. Buyer may prepay without a penalty except n/a . Buyer ® Shall O Shall Not provide a mortgagee's title insurance policy,at Buyer's expense. e. Cash at Closing.All amounts paid by Buyer at Closing including Cash at Closing, plus Buyer's closing costs, shall be in funds which comply with all applicable Colorado laws, which include cash, electronic transfer funds, certified check, savings and loan teller's check and cashier's check (Good Funds). 5. FINANCING CONDITIONS AND OBLIGATIONS. a. Loan Application. [Omitted-Not Applicable] b. Loan Commitment. [Omitted-Not Applicable] c. Credit Information. If Buyer is to pay all or part of the Purchase Price by executing a promissory note in favor of Seller or if an existing loan is not to be released at Closing, this contract is conditional upon Seller's approval of Buyer's financial ability and creditworthiness, which approval shall be at Seller's sole and absolute discretion. In such case: (I) Buyer shall supply to Seller by Buyer's Credit Information Deadline (§2c),at Buyer's expense,information and documents concerning Buyer's financial,employment and credit condition;(2)Buyer consents that Seller may verify Buyer's financial ability and creditworthiness (including obtaining a current credit report); (3) any such information and documents received by Seller shall be held by Seller in confidence, and not released to others except to protect Seller's interest in this transaction; (4)if Seller does not provide written notice of Seller's disapproval to Buyer by Disapproval of Buyer's Credit Deadline (§ 2c), then Seller waives this condition.If Seller does provide written notice of disapproval to Buyer on or before said date,this contract shall terminate. d. Existing Loan Review. [Omitted-Not Applicable] APPRAISAL PROVISIONS. a. Appraisal Condition. This subsection a. O Shall 0 Shall Not apply. Buyer shall have the sole option and election to terminate this contract if the Purchase Price exceeds the Property's valuation determined by an appraiser engaged by n/a . The contract shall terminate by Buyer giving Seller written notice of termination and either a copy of such appraisal or written notice from lender which confirms the Property's valuation is less than the Purchase Price,received on or before the Appraisal Deadline (§ 2c). If Seller does not receive such written notice of termination on or before the Appraisal Deadline (§2c), Buyer waives any right to terminate under this subsection. b. Cost of Appraisal. Cost of any appraisal to be obtained after the date of this contract shall be timely paid by O Buyer O Seller. 7. EVIDENCE OF TITLE. a. Evidence of Title;Survey.On or before Title Deadline (§ 2c), Seller shall cause to be furnished to Buyer, at Seller's expense, a current commitment for owner's title insurance policy in an amount equal to the Purchase Price or if this box is checked, ❑An Abstract of title certified to a current date. If a title insurance commitment is furnished, it O Shall ®Shall Not commit to delete or insure over the standard exceptions which relate to: (I) parties in possession, (2) unrecorded easements, (3) survey matters, (4) any unrecorded mechanics' liens, (5) gap period (effective date of commitment to date deed is recorded),and (6) unpaid taxes,assessments and unredeemed tax sales prior to the year of Closing. Any additional premium expense to obtain this additional coverage shall be paid by O Buyer O Seller. An amount not to exceed $ n/a for the cost of any improvement location certificate or survey shall be paid by O Buyer O Seller- If the cost exceeds this amount, n/a shall pay the excess on or before Closing.The improvement location certificate or survey shall be received by Buyer on or before Survey Deadline(§2c). Seller shall cause the title insurance policy to be delivered to Buyer as soon as practicable at or after Closing. b. Copies of Exceptions. On or before Title Deadline (§2c), Seller, at Seller's expense, shall furnish to Buyer, (I)a copy of any plats, declarations, covenants, conditions and restrictions burdening the Property, and (2) if a title insurance commitment is required to be furnished,and if this box is checked ® Copies of any Other Documents (or, if illegible, summaries of such documents) listed in the schedule of exceptions (Exceptions). Even if the box is not checked, Seller shall have the obligation to furnish these documents pursuant to this subsection if requested by •iyer any time on or before the Document Request Deadline (§ 2c). This requirement shall pertain only to documents as shown of record in the rice of the clerk and recorder(s). The abstract or title insurance commitment,together with any copies or summaries of such documents furnished pursuant to this Section, constitute the title documents (Title Documents). CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99 RealFA$T®Forms,Box 4700,Frisco,CO 80443, Version 6.03,®Rea1FA$T®,2000;Reg#PCOCOL222700 Completeddbb'A-DREG ZADEL,BROKER,GRI,CRS,Zadel 8 Associates Realty Buyer(s) A`C 07/06/00[7:01:03 Seller(s) 1175 age• ;Lc 3 h // n r19. •lQ\ 8• TITLE. a. Title Rview. Buyer shall have the right to inspect the Title Documents. Written notice by Buyer of unmerchantability of title or o ( any other unsatisfactory title condition shown by the Title Documents shall be signed by or on behalf of Buyer and given to Seller on or before Objection Deadline (§ 2c), or within five (5) calendar days after receipt by Buyer of any :xception(s)to the title commitment together with a copy of the Title Document adding new notice by the date(s)specified above,Buyer accepts the condition of title as disclosed by the Title Documentto s as satisfactory,endorsement(s) adding Tilt b. Matters not Shown b the Public Records. Seller shall deliver to Buyer, on or before(Off-Record Matters t does not inreeeive 2c)Buyeue copies of all leases) and surveys) in Seller's possession g matters not shown by the public records of which Seller has actual knowledge. Buyer shall have the right to inspect the Property pertaining to the Property and shall disclose to Buyer Deadline (§ true third party(ies)has any right in the Property all easements, liens or other title discrepancy). Written notice of any unsatisfactory condition(s) disclosed by Seller or revealed by such inspection shall be signed by or on behalf of P ty not shown by the public records(such as an unrecorded easement, unrecorded lease, or boundary line Buyer and given to Seller on or before Off-Record P rtY to determine if any accepts title subject to such rights, if id Meno Objection had Deadline (§2c).le Seller does not receive Buyer's notice by said date, gh any, of third parties of which Buyer has actual knowledge. INDEBTEDNESS THAT Inrij DBistricts. REVEALES PRODUCECIAL TAXING ED FROM ANNUAL TAXSUBJECT TO GENERAL OBLIGATION DISTRICTS Buyer WITHIN SUCH DISTRICTS, PROPERTY OWNERS IN SUCH DISTRICTS MAY BE PLACED AT RISK FOR INCREASED LEVIES AND EXCESSIVE TAX BURDENS TO SUPPORT THE SERVICING OF SUCH DEBT SON THE TAXABLE PROPERTYISE RESULTING IN THE INABILITY OF SUCH A DISTRICT TO DISCHARGE SUCH INDEBTEDNESS WITHOUT SUCH AN INCREASE IN MILL LEVIES. BUYER SHOULD INVESTIGATE THE DEBT FINANCING RE WHERE CIRCUMSTANCES ARISE OBLIGATION INDEBTEDNESS OF SUCH DISTRICTS, EXISTING MILL LEVIES OF INDEBTEDNESS,AND THE POTENTIAL FOR AN INC VIIIREMENTS OF THE AUTHORIZED GENERAL In the event the PropertyREASE IN SUCH MILL LEVIES. SUCH DISTRICT SERVICING SUCH is by Seller on o p s located within a special taxing district and Buyer desires to terminate this contract as a result if written notice 5ceive receivedyer%notice ay such date,Buyer accepts the Mattersect thbje ert on Deadline inclusion in such this cospecintract taxing nate. If Seller does not d. Rieht`ure• If Seller receives notice of unmerchantability of tleeor any other unsatisfactory l then title condition(s)or commitment terms as provided in § 8 a or b above, Seller shall use reasonable effort to correct said items and bear any nominalexpense tto correct the same prior Closing. If such unsatisfactory title condition(s)are not corrected on or before Closing, this contract shall then terminate; provided,however, Buyer may, by written notice received by e. Title Advisory. on or Documen�Closing,waive objection to such items. to Additionally, other maters not The Title the DoTitcuments isDocumentsaff the title, ownership the title,a and use boundary lines y, and encroachment;reflected, i therm le use of the Property and should inc be various laws andarea g, unrecorded P and use of the reviewed carefully. governmental regulations concerning land use development and claims of environmental leases m and other Property,uface unrecorded ang greements, limitation od separately from the underlying mineral estate,ar parties may hold in oil, and environmental include c. The surface of esthe em�tt' and and transfer a the male surface estate does not necessarily transfer ty,which the � rights to enter and use the Property.4gas,other minerals,geothermal energy may be owned 1 igts with respect to all such Such there mattets are strict be tirne limits or on or under the Property, ly rights. Off-Record Matters Objection may excluded from the title insurance P ty, interests may give k Deadline provided in this contracthlry. Buyer is advised Deadline to timely con an 9. LEAD-BASED PAINT. �§ 2e]), ( g•, Title Objection LEApenni was issued N to exempt,Jnmuarl if this the immrov tints on be the dProle s a completedao Lead- (§ 2cr ich a and building gnd by Seller and the prior required d real estate anuarlicensee(s), l h mop one a -Bas d Paint dwelling(s)u ssig0. DISCLOSURE AND INSPECTION.which must occur Based Paint Disclosure (Sales) form is Buyer with PROPERTY a E DISCLOSURE adverse NDtersre prior the parties yi Disclosure this contract. CTIg On poe tyfco Seller's Property Diecbest oe Seller's (§2c), Sellerk o agrees to provide a. Inspection Objection Deadline Buyer the Property completed by Seller to the best of Seller's current actual knowledge. Inclusions, at Buyer's expense, If the Y shall have the right to have ins on or before Inspection Objection Deadline I condition of the Property inspection(s) of the physical condition of the Pro (§that this P in to Inclusions is unsatisfactory in Buyer's subjective discretion,Buyer Property and (I) notify Seller in writing that this contract is terminated,or (2) provide Seller with a written description of any unsatisfactory physical condition which Buyer requires Seller to correct (Notice to Correct). If written deemed is not received c by So ler or before Inspection Objection Deadline Inclusions shall be deemed to besatisfactory to Buyer. l condition f the b. Resolution Deadline If a Notice to Correct is received by Seller and if Buyer and Seller have hnotagreed in writing ng to a settlement thereof on or before Resolution Deadline Property and before such termination Seller receives Buyer's written withdrawal of the Notice to Correct. 2c), this contract shall terminate one calendar day following the Resolution Deadline less c. Damae• Liens• Indemnity. Buyer is responsible performed at Buyer's request and shall pay for any damage which occurs to the Property and Inclusions as a result of such activities.Buyer shall not for payment for all inspections,surveys, engineering re permit claims or liens of any kind against the Property for inspections,surveys,engineering reports and for any other work ports or for any other work at Buyer's request. Buyer agrees to indemnify,Seller in rcoequest with any such o inspection,c ,protect t or lien. Seller harmless includes Selgrin tight to Y and hold t from and against any liability, damage, cost or expense incurred by Seller to enforce this subsection, including Seller's reasonable attorney fees. The provisions of this subsection shall survive the ttermlination of this contract. recover all costs and ex II. CLOSING. Delivery expenses incurred by Date of deed(s)from Seller to Buyer shall be at Closing(Closing). Closing shall be on the date specified as the Closing (§ 2c)or by mutual agreement at an earlier date. The hour and place of Closing shall be as designated b 12. TRANSFER OF TITLE. Subject to tender or payment at Closing as required herein and compliance by Buyer with the other terms and rrovions hereof, Seller shall execute and deliver a good and sufficient g Y by BZade Realt 'r1 free and clear of all taxes except the general taxes for the year of Closing. Except as provided herein, title shall be conveyed free and clear .ions, includingany en sal warranty deed to Buyer, at Closing, governmental liens for special improvements installed as of the date of Bu ers signature g' conveying the 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99 Y gnature hereon, whether assessed or not. FAST®Forms,Box 4700,Frisco,CO 80443, Version 6.03,OReaIFAST®,2000;Reg#PCOCOL222700 pleted by- REG/ZADEL,BROKER,GRI,CRS,Zadel&Associates Realty 07/06/0017.01'03 �� Title shall be conveyed subject to: a. those specific Exceptions described by reference to recorded documents as reflected in the Title Documents accepted by Buyer it accordance with§ 8a[Title Review], b. distribution utility easements, c. those specifically described rights of third parties not shown by the public records of which Buyer has actual knowledge and which were accepted by Buyer in accordance with § 8b [Matters Not Shown by the Public Records],and d. inclusion of the Property within any special taxing district,and e. the benefits and burdens of any declaration and party wall agreements, if any,and f. other n/a 13. PAYMENT OF ENCUMBRANCES. My encumbrance required to be paid shall be paid at or before Closing from the proceeds of this transaction or from any other source. 14. CLOSING COSTS; DOCUMENTS AND SERVICES. Buyer and Seller shall pay, in Good Funds,their respective Closing costs and all other items required to be paid at Closing,except as otherwise provided herein. Buyer and Seller shall sign and complete all customary or reasonably required documents at or before Closing. Fees for real estate Closing services shall be paid at Closing by ® One-Half by Buyer and One-Half by Seller ❑ Buyer O Seller O Other n/a The local transfer tax of .001 %of the Purchase Price shall be paid at Closing by ®Buyer O Seller. Any sales and use tax that may accrue because of this transaction shall be paid when due by ❑ Buyer O Seller. IS. PROBATIONS. The following shall be prorated to Closing Date (§2c), except as otherwise provided: a. Taxes. Personal property taxes,if any, and general real estate taxes for the year of Closing,based on ®The Taxes for the Calendar Year Immediately Preceding Closing O The Most Recent Mill Levy and Most Recent Assessment O Other n/a b. Rents. Rents based on O Rents Actually Received O Accrued. Security deposits held by Seller shall be credited to Buyer. Seller shall assign all leases to Buyer and Buyer shall assume such leases, n/a c. Other Prorations. Water, sewer charges;and interest on continuing loan(s), if any;and n/a d. Final Settlement. Unless otherwise agreed in writing, these prorations shall be final. 16. POSSESSION.Possession of the Property shall be delivered to Buyer on Possession Date and Possession Time (§ 2c), subject to the following lease(s)or tenancy(s): insurance office shall vacate or or before October 10, 2000, but it shall be as soon as practical. If Seller,after Closing,fails to deliver possession as specified, Seller shall be subject to eviction and shall be additionally liable to Buyer tor payment of$ 100.00 per day from the Possession Date (§ 2c)until possession is delivered. 17. NOT ASSIGNABLE. This contract shall not be assignable by Buyer without Seller's prior written consent Except as so restricted,this contract shall inure to the benefit of and be binding upon the heirs,personal representatives,successors and assigns of the parties. 18. CONDITION OF,AND DAMAGE TO PROPERTY AND INCLUSIONS. Except as otherwise provided in this contract,the Property, Inclusions or both shall be delivered in the condition existing as of the date of this contract,ordinary wear and tear excepted. a. Casualty; Insurance. In the event the Property or Inclusions shall be damaged by fire or other casualty prior to Closing, in an amount of not more than ten percent of the total Purchase Price, Seller shall be obligated to repair the same before the Closing Date (§ 2c). In the event such damage is not repaired within said time or if the damages acted such sum, this contract may be terminated at the option of Buyer by delivering to Seller written notice of termination. Should Buyer elect to carry out this contract despite such damage, Buyer shall be entitled to a credit, at Closing, for all the insurance proceeds resulting from such damage to the Property and Inclusions payable to Seller but not the owners'association, if any,plus the amount of any deductible provided for in such insurance policy, such credit not to exceed the total Purchase Price. plumbing, bete.) ail ma ag ; In nclusiondsbetwcenes.th S datehouldf any thi Inclusion(s) contract(s)or and service(s) sing or(including systems and components of the Property,e.g. heating, for the repair or replacement of such Inclusion(s) or service(s) with a unit of similar spossize, age ansion, d whichever quality, or an l be earlier, then ot credit, , shall only to theextent that the maintenance or replacement of such Inclusion(s),service(s) or fixture(s) is not the responsibility of theowners' association, if ny less any insurance proceeds received by Buyer covering such repair or replacement. c. Walk-Through;Verification of Condition. Buyer, upon reasonable notice, shall have the right to walk through the Property prior to Closing to verify that the physical condition of the Property and Inclusions complies with this contract. 19. RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this document, Buyer and Seller acknowledge that the Selling Company or the Listing Company has advised that this document has important legal consequences and has recommended the examination of title and consultation with legal and tax or other counsel before signing this contract. 20. TIME OF ESSENCE AND REMEDIES. Time is of the essence hereof. If any note or check received as Earnest Money hereunder or any other payment due hereunder is not paid, honored or tendered when due, or if any other obligation hereunder is not performed or waived as herein provided,there shall be the following remedies: a. If Buyer is in Default. (1) Specific Performance. Seller may elect to treat this contract as canceled,in which case all payments and things of value received hereunder shall be forfeited and retained on behalf of Seller,and Seller may recover such damages as may be proper, or Seller may elect to treat this contract as being in full force and effect and Seller shall have the right to specific performance or damages,or both. ( (2) Liquidated Damages. All payments and things of value received hereunder shall be forfeited by Buyer and retained on behalf Seller and both parties shall thereafter be released from all obligations hereunder. It is agreed that such payments and things of value are CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99 ReaJFA$T®Forms,Box 4700,Frisco,CO 80443, Version 6.03,©ReaIFA$T®,2000;Reg#PCOCOL222700 Completed b EG ZADEL,BROKER,GRI,CRS,Zadel 8 Associates Realty Buyer(s) ' r r ci 07/06/00 17:01:03 J��,�/age.�of 8 �� Seller(s) 3 e 7er8 LIQUIDATED DAMAGES and (except as provided in subsection c) are SELLERS SOLE AND ONLY REMEDY for Buyer's failure to perfom the obligation If s of this contract.Seller expressly waives the remedies of specific performance and additional damages.t to treat s contract as led, in hereunder hall be eN—returned Seller erBmayrrecoverluch damages as may be proper,eorr, Buyerhmay elect th case ll o treat this contract as being in full force and effect and Buyer shall have the right to specific performance or damages, or both, payments things of value received 1 -- c. Costs lsees In the event of any arbitration or litigation relating to this contract, the arbitrator or court shall award to the I prevailing party all reasonable costs and expenses,including attorney fees. 21. MEDIATION. If a dispute arises relating to this contract, prior to or after Closing and is not resolved, the parties shall frst proceed in good faith to submit the matter to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree before any settlement is binding. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The mediation, unless I otherwise agreed, shall terminate in the event the entire dispute is not resolved 30 calendar days from the date written notice requesting mediation is sent by one party to the other(s). This Section shall not alter any date in this contract, unless otherwise agreed. 22. EARNEST MONEY DISPUTE. Notwithstanding any termination of this contract, Buyer and Seller agree that, in the event of any controversy regarding the Earnest Is,Ith-Cey and things of value held by broker or Closing Company (unless by the holder of the Earnest Money and things of value), broker or Closing Company shall not be required to take any action but may await any proceeding, or at broker's or Closing Company's option and sole discretion, may interplead all rties a d deposit any moneys or things of value into a court of competent jurisdiction and shall recover court costs and reasonable attorney fees. 23. TERMINATION In the event this contract is terminated, all parties shall be relieved of all obligations hereunder,subject to§ § 10; 21 and is and things of value received hereunder shall be returned and the 2oommission), ADDITIONAL PROVISIONS. (The Clanguage of these additional provisions has not been ap proved by the Colorado Real Estate A. Interest on owner carry note shall start as of September 1, 2000, with the 1st payment due October 1, 2000. Interest from date of closing to September 1 shall be waived. B. If any equipment held under the security agreement is sold, 50% of the sales price shall • be paid to the note holder (applied toward principal) for a partial release. C. There shall be no rent on the insurance office from the date of closing until of the office is delivered. Utilities, including telephone service shall be maintained so the office can operate normally. possession O. Upon acceptance, Buyer may come into the property to train with the Seller prior to closing, but no wages shall be paid to Buyer. An inventory of all supplies and resale items (including liquor, beer, balls, candy, cigarettes, etc. ) shall be done within 5 days Seller for the inventory at food, bowling closing, based on Seller's cost of the items. Buyer shall pay F. No operating cash shall be transferred to Buyer. All accounts receivable and payable that take place prior to the date of closing shall be the responsibility of the G. This contract is contingent uponname This ClosingBu shall take place as soon as the license can be issued to the Buyer. 25. ENTIRE AGREEMENT. SUBSE UENT MODIFICATION. SURVIVAL. This contract constitutes the entire contract between the parties relating to the subject hereof,and any priorreements pertaining thereto, whether oral or written, have been merged and integrated into this contact. No subsequent modification of any of the terms of this contract shall be valid, binding upon the parties, or enforceable unless made in writing v and signed by the parties.Any obligation in this contract which, by its terms, is intended to be ritig the same. 26. FACSIMILE Signaturesperformed after termination or Closing shall g ®May O ry Not be evidenced by facsimile.Documents with original signatures shall be provided to the 6. party at FACSIMILE or earlier Sign upon request M of party. 27. NOTICE. Except for the notice requesting mediation described in § 21, any notice to Buyer shall be effective when received by Buyer or by Selling Company and any notice to Seller shall be effective when received by Seller or Listing Company. 28. NOTICE OF ACCEPTANCE. COUNTERPARTS. This proposal evidenced by their signatures below,and the offering esti lost shall expire unless accepted in writing, by Buyer and Seller, as and Acceptance Deadline Time (§ 2c).If accepted,this document shall noticbecome a ce of ontractt betweece pursuant n Seller and Buyer. A copy of this document may be executed by each party,separately,and when each party has executed a copy thereof,such copies taken together shall be deemed to be a full and complete contract between the parties. S 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99 3IFA$T®Forms,Box 4700,Frisco,CO 80443, Version 6.03,CRealFA$T®,2000;Reg#PCOCOL222700 npleted by EG ZADEL,BROKER,GRI,CRS,Zadel&Associates Really er(s) C_& G 07/06/00 77:01:03o fy Seller(s) -ELL•age flf-1 • _BUYER —471(74i) ��01 DATE Fernando Canas 915 S. Hoover Ave. , Ft. Lupton, CO 80621 BUYER /��GO� Martha s ��na DATE 915 . Hoover Ave. , Ft. Lupton, CO 80621 [NOTE: If this offer is Abeing countered or rejected, do not sign this document. Refer to § 29] SELLER a-i.�f�0 & a-40_12n� DATE 7 7 -d000 Franklin C. Zadel 217 1st Street, Ft. Lupton, CO 80621 SELLER DATE Helen M. Zadel 217 1st Street, Ft. Lupt CO 80621 Zadel Enterprises, Inc. 217 1st Street, Ft. Lupton, CO 80621 SELLER �,A A, e 3 tek.t 7-7— XJn DATE By: Franklin C. Zadel ( COUNTER; REJECTION.This offer is O Countered O Rejected. Initials only of party(Buyer or Seller)who countered or rejected offer END OF CONTRACT 'Note: Closing Instructions should be signed on or before Title Deadline. BROKER ACKNOWLEDGMENTS- The undersigned Broker(s)acknowledges receipt of the Earnest Money deposit specified in § 4 and, while not a party to the contract,agrees to cooperate upon request with any mediation conducted under§21. Selling Company Brokerage Relationship. The Selling Company and its licensees have been engaged in this transaction as O Buyer Agent ®Seller Agent/Subagent O Dual Agent O Transaction-Broker, Listing Company Brokerage Relationship. The Listing Company and its licensees have been engaged in this transaction as® Seller Agent O Dual Agent ❑Transaction-Broker. BROKERS' COMPENSATION DISCLOSURE. Selling Company's compensation or commission is to be paid by: O Buyer ®Seller O Listing Company 0 Other n/a (To be completed by Listing Company) Listing Company's compensation or commission is to be paid by O Buyer ®Seller O Other n/a • r Selling Company: CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99 ReatFA$T®Forms,Box 4700,Frisco,CO 80443, Version 6.03,®RealFA$T®,2000:Reg#PCOCOL222700 Completed by-GREG ZADEL,BROKER,GRI,CRS,Zadel&Associates Realty 07/06/00 17:01:03 Page 7 of 8 Zadel 5 Associates Realty 311 Grant Ave. P. 0. Box 90 Firestone, Co. 80520 Phone: (303) 833-3012, Fax: (303) 833-3054 9 0 7 Signature GREG DEL Date Listing Company: Zad 1 tv r� /� (Name of Company) By: ?— / -- ©v Signature Date ListingCompa y'sAddr : 311 Grant Ave. P.O.Box 90 Firestone, CO. 80520 Listing Company's Telep one No: 303-833-3012 Listing Company's Fax No: 303-833-3054 l CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99 RealFA$T®Forms,Box 4700,Frisco,CO 80443, Version 6.03,®RealFA$T®,2000:Reg#PCOCOL222700 Completed by-GREG ZADEL,BROKER,GRI,CRS,Zadel&Associates Realty _....._ ._ _. __ Il / Yagea of DR 84041 (02/94) COLORADO DEPARTMENT OF REVENUE LIQUOR ENFORCEMENT DIVISION 1375 SHERMAN STREET DENVER CO 80261 (,.. INDIVIDUAL HISTORY RECORD To be completed by each Individual applicant,all general partners of a partnership,all limited partners owning 10%(or more)of t partnership;all officers and directors of a corporation,all stockholders of a corporation owning 10%(or more)of the stock of such corporation;all limited liability company MANAGING members,or other limited liability company members with a 10%(or more: ownership interest In such company and all managers of a Hotel and Restaurant license. NOTICE:This individual history record provides basic information which is necessary for the licensing authorities investigation.ALL questions must be answered in their entirety.EVERY answer you give will be checked for its truthfulness.A deliberate falsehood will jeopardize the application as such falsehood within itself constitutes evidence regarding the character of the applicant. 1.Name of Business Date Social Security Number(s) _ PATRICIA' S MEXICAN RESTAURANT 07-24-2000 2.Your Full Name(last,first,middle) 3.Also Known As(maiden name/nickname,etc.) CANAS FERNANDO 4.Mailing Address(if different from residence) Home Telephone ( 303 ) 857-4035 5.Residence Address(street and number,city,state,ZIP) 915 S. HOOVER AVE FORT LUPTON, CO 80621 8.Date of Birth Place of Birth 7.U.S.Citizen? CHIHUAHUA MEXICO ® Yes ❑ No If Naturalized,state where When Name of U.S.District Court DENVER, COLORADO 02-05-88 8th Naturalization Certificate Number Date of Certificate Man Alen,Give Mien's Registration Card Number Permanent Residence Card Number 02-05-88 8.Height Weight Hair Color Eye Color Sex Race 9.Do You Have a current Driver's Ucense?II yes,give number,&state 5110' 190 BRW BRW MALE H I SPANI 2[i Yes ❑ No 10.Name of Present Employer 11.Type of Business or Employment MICRO MOTION INC MAINTENANCE 12.Address of Business Where Employed(street number,city,state,ZIP) Business Telephone 7070 WINCHESTER CIRCLE BOULDER, CO 80301 ( 303) 530-8079 13.Present Position MAINTENANCE MECHANIC 14.Marital Status 15.Name of Spouse(include maiden name if applicable) MARRIED MARTHA CANAS MARTHA MANRIQUEZ 16.Spouse's Date of Birth Spouse's Place of Birth DURANGO MEXICO 17.Spouse's residence address,If different than yours(street and number,city,state,ZIP) 18.Spouse's Present Employer Occupation LONGMONT FOODS PRODUCTION WORKER 19.Address of Spouse's Present Employer 150 MAIN STREET LONGMONT, CO 20. List the name(s)of all relatives working in or having a financial interest in the liquor industry. NAME OF RELATIVE RELATIONSHIP TO YOU POSITION HELD NAME OF EMPLOYER LOCATION OF EMPLOYER 21.Do you now,or have you ever held a Slate of Colorado Liquor or Beer License,or loaned money,furniture,fixtures,equipment or inventory,to any Colorado Liquor or Beer Licensee?If yes,answer in detail ❑ Yes ® No CONTINUED ON REVERSE SIDE �� • OR 8404-I(2/94) Page 2 • 22.Have you ever been convicted of a crime,or received a suspended sentence,deferred sentence,or forfeited bail for any offense in criminal or military cowl?(Do not include trs violations,unless they resulted in suspension or revocation of your driver's license,or you were convicted of driving under the influence of drugs or alcoholic beverages.)if y explain in detail. ❑ Yes ® No 23.Have you ever received a violation notice,suspension or revocation for a liquor law violation,or been denied a liquor or beer license anywhere in the U.S.?If yes,explain in dr Lives ® No 24.Military Service(branch) From To Serial Number Type of Discharge 25. List all addresses where you have lived for the past five years. (Attach separate sheet if necessary) STREET AND NUMBER CITY,STATE,ZIP FROM TC 915 S. HOOVER AVE FORT LUPTON, CO 80621 5/15/95 PI za. List all former employers or businesses engaged in within the last five years.(Attach separate sheet if necessary.) NAME OF EMPLOYER ADDRESS(STREET,NUMBER,CITY,STATE,ZIP) POSITION HELD FROM TO 27.What is your relationship to the applicant?(sole owner,partner,corporate officer,director,stockholder,member or manager) 28.If stockholder,number of shares owned beneficially or of record Percent of outstanding stock owned CORPORATE OFFICER STOCK HOLDER 100% 29.If partner,state whether O General ❑ Limited - Percent of Partnership Owned If Limited Liability Company(percent owned) 30.Total amount you will Invest in this business,including notes,loans,cash,services or equipment,and operating capital.(Reg.48-108.1 and Reg.47-107.1) Amount$ 80,000 3t' Identify the sources of all funds you will invest in this business as listed in 30 above. List all bank names, account numbers and the amount derived from such source.Also identify all persons authorized to sign on, or who are part owners of said account.(Attach copies of all your notes or loans used in or for this business.) Amounts Sources-Account Numbers Names on accounts or person who can 1/Gtll P ty H WM( 4 / Y w i T sign on this account $5,000 EARNEST MONEY ACC. ZADEL REALTY First ..valiov,w\ yam( of IOnyht $75,000 CHECKING ACC. FERNANDO & MARTHA CANAS a,- I declare under penalty of perjury in the second degree that this application and all attachments are true, correct, and complete to the best of my knowledge. Authorized Signature Title Date Employment History 26. FERNANDO CANAS Name of employer Address (street,number,city,state,zip) Position Held From To Micro Motion 7070 Winchester Circle Maintenance 12/15/98 Present Boulder, CO 80301 Mechanic Optima Batteries 17500 E. 22nd Ave Aurora, CO 80011 Maintenance 7/27/97 7/06/98 Mechanic Rotational Molding 6770 Brighton,Blvd Maintenance 11/1/96 7/21/97 Commerce City, CO 80022 Mechanic Hormel 1 Hormel Place Maintenance 6/3/96 10/22/96 Austin, MN 55912 Supervisor CAI Technologies 777 Umatilla St Maintenance 02/01/95 5/30/96 Denver, CO 80204 Mechanic 7::;)')/ COLORADO DEPARTMENT OF REVENUE LIQUOR ENFORCEMENT DIVISION 1375 SHERMAN STREET DENVER CO 80261 INDIVIDUAL HISTORY RECORD To be completed by each individual applicant,all general partners of a partnership,all limited partners owning 10%(or more) partnership;all officers and directors of a corporation,all stockholders of a corporation owning 10%(or more)of the stock of el corporation;all limited liability company MANAGING members,or other limited liability company members with a 10% (or me ownership Interest In such company and all managers of a Hotel and Restaurant license. NOTICE:This individual history record provides basic information which is necessary forthe licensing authorities investigation.ALL questit must be answered in their entirety.EVERY answer you give will be checked for its truthfulness.A deliberate falsehood will Jeopardize application as such falsehood within itself constitutes evidence regarding the character of the applicant. 1.Name of Business Date Social Security Number(s) PATRICIA'S MEXICAN RESTAURANT 07/24/2000 2.Your Full Name(last,first,middle) 3.Also Known As(maiden name/nickname,e CANAS MARTHA 4.Mailing Address(if different from residence) Home Telephone ( 303) 857-4035 5.Residence Address(street and number,city,state,ZIP) 915 S. HOOVER AVE FORT LUPTONL CO 80621 6.Date of Birth Place of Birth 7.U.S.Citizen? DURANGO, MEXICO ❑ Yes ® No If Naturalized,state where When Name of U.S.District Court Naturalization Certificate Number Date of Certificate Nan Arren,Give Men's Registration Cant Number Permanent Residence Card Nutter Alt 090-615-775 8.Height Weight Hair Color Eye Color Sex I Race 9.Do You Have a current Drivers License?If yes,give number,8 state 5 ' 6" 145 BLACK BROWN FEMALE fiISPANI Yes ❑ No 10.Name of Present Employer 11.Type of Business or Employment LONGMONT FOODS 12.Address of Business Where Employed(street number,city,state.ZIP) Business Telephone 150 MAIN STREET LONGMONT, CO ( 303) 776-6611 13.Present Position PRODUCTION WORKER 14.Marital Status 15.Name of Spouse(Include maiden name If applicable) MARRIED FERNANDO CANAS 16.Spouse's Date of Birth Spouse's Place of Birth CHIHUAHUA, MEXICO 17.Spouse's residence address,if different than yours(street and number,city,state,ZIP) 18.Spouse's Present Employer Occupation MICRO MOTION, INC MAINTENANCE MECHANIC 19.Address of Spouse's Present Employer 7070 WINCHESTER CIRCLE BOULDER, CO 80301 20. List the name(s)of all relatives working in or having a financial interest in the liquor industry. NAME OF RELATIVE RELATIONSHIP TO YOU POSITION HELD NAME OF EMPLOYER LOCATION OF EMPLOYER 21.Do you now,or have you ever held a State of Colorado Liquor or Beer License,or loaned money,furniture,fixtures,equipment or inventory,to any Colorado Liquor or Beer { Licensee?if yes,answer in detail ❑ Yes ® No CONTINUED ON REVERSE SIDE (-18 Un e4u4-I V/V4) rage e 22.Have you ever been convicted of a crime,or received a suspended sentence,deferred sentence,or forfeited bail for any offense in criminal or military court?(Do not include I violations,unless they resulted in suspension or revocation of your driver's license,or you were convicted of driving under the influence of drugs or alcoholic beverages.)Ii explain in detail. ❑ Yes ® No 23.Have you ever received a violation notice,suspension or revocation for a liquor law violation,or been denied a liquor or beer license anywhere in the U.S.?If yes,explain in i ❑ Yes ® No 24.Military Service(branch) From To Serial Number Type of Discharge 25. List all addresses where you have lived for the past five years. (Attach separate sheet if necessary) STREET AND NUMBER CITY,STATE,ZIP FROM T 915 S. HOOVER AVE FORT LUPTON, CO 80621 /15/9 p: ze. List all former employers or businesses engaged in within the last five years. (Attach separate sheet if necessary.) NAME OF EMPLOYER ADDRESS(STREET,NUMBER,CITY,STATE,ZIP) POSITION HELD FROM TC PRODUCTI LONGMONT FOODS 150 MAIN STREET LONGMONT, CO WORKER 0/29/ gRI 27.What Is your relationship to the applicant?(sole owner,partner,corporate officer,director,stockholder,member or manager) CORPORATE OFFICER 28.If stockholder,number of shares owned beneficially or of record Percent of outstanding stock owned 29.If partner,state whether ❑ General ❑ Limited Percent of Partnership Owned If Limited Liability Company(percent owned) 30.Total amount you will Invest in this business,Including notes,loans,cash,services or equipment,and operating capital.(Reg.46-106.1 and Reg.47-107.1) Amount$ 31. Identify the sources of all funds you will invest in this business as listed in 30 above. List all bank names, account numbers and the amount derived from such source.Also identify all persons authorized to sign on, or who are part owners of said account.(Attach copies of all your notes or loans used in or for this business.) Amounts Sources-Account Numbers Names on accounts or person who can sign on this account k„Wtifl'£tis'�"� s �; "° a .°s�^-44 �5, t5-.'' 54 Ge �' � a �j s�y,P dPt 4 r, ;c r z.Y" f' k da rr₹e-r, y, rm4g``f, `"9 er5,= ., ..0 1 ya%yz7r'" .°: '"ry I declare under penalty of perjury in the second degree that this application and all attachments are true, correct, and complete to the best of my knowledge. Authorized Signature Title Date 1 7till4•C te- eye ev� 744/oo DR 8404-I(02/94) COLORADO DEPARTMENT OF REVENUE LIQUOR ENFORCEMENT DIVISION • 1375 SHERMAN STREET DENVER CO 80281 ( INDIVIDUAL HISTORY RECORD To be completed by each Individual applicant,all general partners of a partnership,all limited partners owning 10%(or more)o partnership;all officers and directors of a corporation,all stockholders of a corporation owning 10%(or more)of the stock of sui corporation;all limited liability company MANAGING members,or other limited liability company members with a 10%(or mot ownership interest in such company and all managers of a Hotel and Restaurant license. NOTICE:This individual history record provides basic information which is necessary for the licensing authorities investigation.ALL questiot must be answered in their entirety.EVERY answer you give will be checked for its truthfulness.A deliberate falsehood will jeopardize ti application as such falsehood within itself constitutes evidence regarding the character of the applicant 1.Name of Business Date Social PATRICIA' S MEXICAN RESTAURANT 2737S25 Number(s) 07/24/2000 2.Your Full Name(last,first,middle) CANAS ISMAEL 3.Also Known As(maiden name/nickname,etc 4.Mailing Address(8 different from residence) Home Telephone 5.Residence Address(street and number,city,state.ZIP) (303) 857-4035 915 S. HOOVER AVE FORT LUPTON, CO 80621 8.Date of Birth I Place of Birth 7.U.S.Citizen? CHICAGO, ILLINOIS ® Yes ❑ No If Naturalized,state where When Name of U.S.District Court Naturalization Certificate Number Date of Certificate Nan Men,Give Men's Reg istration Card Number I Permanent Residence Card Number 8.Height I Weight Hair Color Eye Color Sex Race 9.Do You Have a current Driver's License?If 5 ' 10" 170 (BROWN BROWN [MALE 4I n NO ISPANIC ® yes 10.Name of Present Employer 11.Type of Business or Employment ACCOUNT TEMPS ACCOUNTING ( 12.Address of Business Where Employed(street number,city,state,ZIP) 1225 17th STREET SUITE 1450 DENVER, CO 80202 I Business T 29 13.Present Position hone (303) 296-1010 CREDIT COLLECTOR 14.Marital Status 15.Name of Spouse(Include maiden name if applicable) SINGLE 16.Spouse's Date of Birth Spouse's Place of Binh 17.Spouse's residence address,if different than yours(street and number,city,state,ZIP) 18.Spouse's Present Employer Occupation 19.Address of Spouse's Present Employer I_ 20. List the name(s)of all relatives working in or having a financial interest in the liquor industry. NAME OF RELATIVE RELATIONSHIP TO YOU POSITION HELD NAME OF EMPLOYER LOCATION OF EMPLOYER 21.Do you now,or have you ever held a State of Colorado Liquor or Beer License,or loaned money,furniture,fixtures,equipment or inventory,to any Colorado Liquor or Beer Licensee?If yes,answer in detail ❑ Yes ® No CONTINUED ON REVERSE SIDE DR 8404-I(2/94) Page 2 22.Have you ever been convicted of a crime,or received a suspended sentence,deferred sentence,or forfeited bail for any offense in criminal or military court?(Do not includetra violations,unless they resulted in suspension or revocation of your drivers license,or you were convicted of driving under the influence of drugs or alcoholic beverages.)If y explain in detail. ® Yes ❑ No 23.Have you ever received a violation notice,suspension or revocation for a liquor law violation,or been denied a liquor or beer license anywhere in the U.S.?If yes,explain in de Eves ® No 24.Military Service(branch) tl I From To Serial Number Type of Discharge 25. List all addresses where you have lived for the past five years. (Attach separate sheet if necessary) STREET AND NUMBER r CITY,STATE,ZIP FROM TO 915 S. HOOVER AVE FORT LUPTON, CO 6/15/95PRE 28. List all former employers or businesses engaged in within the last five years. (Attach separate sheet if necessary.) NAME OF EMPLOYER ADDRESS(STREET,NUMBER,CITY,STATE,ZIP) POSITION HELD FROM TO 27.What is your relationship to the applicant?(sole owner,partner,corporate officer,director,stockholder,member or manager) CORPORATE OFFICER 28.If stockholder,number of shares owned beneficially or of record j Percent of outstanding stock owned 29.If partner,state whether O General ❑ Limited Percent of Partnership Owned If Limited Liability Company(percent owned) 30.Total amount you will Invest in this business,including notes,loans,cash,services or equipment,and operating capital.(Reg.46-106.1 and Reg.47-107.1) Amount S 31. Identify the sources of all funds you will Invest in this business as listed in 30 above. List all bank names, account numbers and the amount derived from such source.Also Identify all persons authorized to sign on, or who are part owners of said account.(Attach copies of all your notes or loans used in or for this business.) Amounts Sources-Account Numbers I Names on accounts or person who can L sign on this account rw fin,_ /declare under penalty of perjury in the second degree that this application and all attachments are true,correct,and complete to the best of my knowledge. Authorized Signature _ . _ Title Date Irtr 0.Svre ( i5ccrefe-r 17,44( CEmployment History 26. ISMAEL CANAS Name of employer Address (street, number,city,state, zip) Position Held From To Account Temps 1225 17"'St #1450 Credit Collector 6/00 Present Denver, CO 80202 Colorado State Fort Collins, CO Peer Mentor 9/99 5/00 University 80523 Echostar 5701 S. Santa Fe Littleton, CO 80120 Phone Rep 6/99 8/99 Kmart 825 S. Kuner Rd Associate 3/95 1/99 Brighton, CO 80601 C t 22. ISMAEL CANAS Ismael Canas received several traffic violation tickets that depleted his points, and he had his driver's license suspended for a period of six months. The tickets were issued by a photographic device installed in an intersection in Fort Collins, Colorado. l Mail to: Secretary of State For office use only 001 • Corporations Section Please Include a typed 1560 Broadway, Suite 200 elf-addressed envelope Denver, CO 80202 (. (303) 894-2251 wawa pari MUST BE TYPED Fax (303) 894-2242 Dogirci,n%r KAI FILING FEE: $50.00 ur{ti' MUST SUBMIT TWO COPIES ARTICLES OF INCORPORATION Corporation Name LAS ENTERPRISES, INC 20001140118 C $ 100.00 Principal Business Address 915 S. HOOVER AVE. FORT LUPTON, CO 80621 SECRETARY OF STATE (Include City, State, Zip) U/-19-'2000 08:09:44 Cumulative voting shares of stock is authorized. Yes I$ No O If duration is less than perpetual enter number of years Preemptive rights are granted to shareholders. Yes 17 No O Stock Information: (If additional space is needed, continue on a separate sheet of paper.) Stock Class A Authorized Shares 100 Par Value $1.00 Stock Class Authorized Shares Par Value the name of the initial registered agent and the address of the registered office is:(If another corporation, use last name space) Last Name CAMAS First & Middle Name FERNANDO Street Address 915 S. HOOVER AVE. FORT LUPTON, CO 80621 (Include City, State,Zip) The undersigned consents to the appointment� as the initial registered agent. Signature of Registered Agent 6140/, These articles are to have a de yed effective date of: 07/18/00 Incorporators: Names and addresses: (If more than two, continue on a separate sheet of paper. NAME ADDRESS FERNANDO CANAS 915 S. HOOVER AVE. FORT LUPTON. CO 80621 Incorporators who are natural persons must be 18 years or more. The undersigned, acting as incorporator(s) of a corporation u der the Colorado Bu 'ness Corporation Act, adopt the above Articles of Incorporation. :._ .ignature r Signature / 1 ) Revised 7/95 Mail to: Secretary of State For office use only Corporations Section 1560 Broadway, Suite 200 Denver, CO 80202 (303) 894-2251 Yx -cunmtacolt MUST BE TYPED r* ��! .u.,a,a rrr Fax (303) 894-2242 ee"cm+ )".n.*,,,,,-r;,:..., FILING FEE: 5,10.00 MUST SUBMIT O COPIES 20 01140119 C Please include; typed SECRETARY OF STATE self-addressed envelope 07-19-2000 08:09:44 CERTIFICATE OF ASSUMED OR TRADE NAME CANAS ENTERPRISES, INC , a corporation limited partnership or limited liability company under the laws of COLORADO being desirous of transacting a portion of its business under an assumed or trade name as permits by 7-71-101, Colorado Revised Statutes, hereby certifies: 1 . The location of its principal office is: 915 S. HOOVER AVE. FORT LUPTON, CO 80621 (Include city, state, zip) 2. The name, other than its own, under which the business is carried on is: PATRICIA'S MEXICAN RESTAURANT 3. A brief description of the kind of business transacted under such assumed or trade name is: It is a family style mexican restaurant that serves lunch and dinner. Limited Partnership or Limited Liability Corporations complete this section Companies complete this section. CANAS ENTERPRISES, INC Name of Entity Name of Corporation by by Signature Signature Its PRESIDENT Title, General Partner, or Manager Title K. inn., Revised 7/95 MINUTES OF ORGANIZATIONAL MEETING OF CANAS ENTERPRISES, INC The organizational meeting of CANAS ENTERPRISES, INC a corporation organized under the laws of the State of COLORADO , was held by the initial board of directors on 07/24/2000 at 915 S. HOOVER AVE FORT LUPTON,• C COLORADO The following directors were present at the meeting: • Also present at the meeting were: Upon motions duly made and unanimously passed, FERNANDO CANAS { was chosen as the Chairman of the Board of Directors,and I SMAEL CANAS was chosen as Secretary of the meeting. The first order of business was the nomination and election of the officers of the Corporation and the fixing of their compensation. The following persons were nominated to the following offices of the Corporation at the following salaries: Name Office Salary FERNANDO CANAS PRESIDENT $1 .00 year MARTHA CANAS VICE-PRESIDENT $1 .00 year ISMAEL CANAS TREASURER/SECRETARY $1 .00 year The nomination of the foregoing slate of officers was seconded and they were unanimously elected and appointed as the officers of the Corporation at the salaries above listed. It was reported that Articles of Incorporation for the Corporation had been filed in the office of the Secretary of State of the State of COLORADO ,and that the effective date of the incorporation was 07/19/2000 . The Secretary was instructed to insert a duplicate original copy of the Articles of Incorporation in the official records of the Corporation. The Secretary presented a proposed set of Bylaws for the corporation that had been prepared by ISMAEL CANAS . After discussion and on motion duly made and unanimously adopted, it was RESOLVED that the proposed Bylaws be and are adopted as the Bylaws of the Corporation. The Secretary was instructed to insert a copy of the Bylaws in the official records of the Corporation. MINUTES OF ORGANIZATIONAL MEETING (Page 1) It was recognized that Attorney at Law,would not be expected to devote his/her full time to the affairs of the Corporation and that he/ she would be entitled to submit to the Corporation statements for legal services performed from time to time at the request of the Corporation at the rate of$ per hour. ❑* The Secretary presented a form of seal for the Corporation. After discussion and upon motion duly made and unanimously adopted,it was RESOLVED that the seal,an impression of which is affixed to these minutes.be and is adopted as the official seal of the Corporation. ❑* The Secretary presented a form of stock certificate for use by the Corporation.After discussion and upon motion duly made and unanimously adopted, it was RESOLVED that the form of certificate presented at the meeting be and is approved as the form of stock certificate to be used by the Corporation in the issuance of its common stock. It was further RESOLVED that the Corporation shall not issue uncertified shares of its common stock. ®* Upon motion duly made and unanimously adopted, it was RESOLVED that the Corporation elect to be taxed under the provisions of Subchapter S of the Internal Revenue Code. The officers of the Corporation were directed to prepare, execute, and file with the Internal Revenue Service a form 2553 and to otherwise comply with the provisions of Subchapter S so as to qualify the Corporation to be taxed as a small business corporation thereunder. Upon motion duly made and unanimously adopted, it was RESOLVED that the common stock of the Corporation be issued to the following persons, in the following amounts, for the following consideration,the value of which was determined by the board of directors to be the value shown below: Name No.of Shares Form of Consideration Value of Consideration The officers of the Corporation were directed to carry out this resolution by issuing the stock described above upon the receipt by the Corporation of the designated consideration. Upon motion duly made and unani- mously adopted,it was further RESOLVED that the consideration received by the Corporation for the issuance of the stock described above be allocated on the books of the Corporation as follows: $ to capital;$ to surplus. ❑* Upon motion duly made and unanimously adopted, it was RESOLVED that all certificates represent- ing shares of common stock of the Corporation shall contain the following notice: "The shares of stock represented by this certificate are subject to transfer and other restrictions contained in the Articles of Incorporation, the Bylaws, and a Shareholders' Agreement dated , a copy of each of which is filed in the registered office of the Corporation. No transfer of the shares represented by this certificate shall be valid unless the requirements of those documents are first complied with to the satisfaction of the Corporation." 'Check if applicable. MINUTES OF ORGANIZATIONAL MEETING (Page 2) Upon motion duly made and unanimously adopted, it was RESOLVED that WELLS FARG0 BANK be the bank of the Corporation, and that the officers of the Corporation obtain the necessary documents so as to permit the Corporation to transact business and deposit and withdraw funds with the bank. Upon motion duly made and unanimously adopted, it was RESOLVED that the fiscal year of the Corpora- tion shall begin on 01/01/2000 and shall end on 12/31/2000 The Treasurer reported that fees and expenses in the amount of$ 160.00 were incurred in the process of incorporating and organizing the Corporation.Upon motion duly made and unanimously adopted, it was RESOLVED that the Treasurer be authorized and directed to pay these fees and expenses and that these expenditures be amortized by the Corporation over a period of 60 months in accordance with Section 248 of the Internal Revenue Code. Upon motion duly made and unanimously adopted, it was RESOLVED that the Corporation ratify and adopt all previous resolutions, actions, and proceedings of the incorporators of the Corporation made and entered into for or on behalf of the Corporation, including the filing of the Articles of Incorporation of the Corporation. Upon motion duly made and unanimously adopted, it was RESOLVED that an office of the Corporation be 915 S. HOOVER AVE FORT LUPT0N, CO 80621 established and maintained at that until further action by the Board of Directors, the meetings of the Board of Directors and shareholders shall be held at such office, and that regular meetings of the Board of Directors be held without notice at the Corporation's office at 4:00 p.m. on the 1st day of each month. O* Upon motion duly made and unanimously adopted, it was RESOLVED that the Officers of the Corpo- ration be and are authorized and directed to qualify the Corporation as a foreign corporation authorized to transact business in the States of and in connection therewith to appoint all necessary agents or attorneys for service of process and to take all other appropriate action in connection with such qualification. Upon motion duly made and unanimously adopted, it was RESOLVED that the Corporation shall employ the following persons for the following positions for the periods and for the compensation indicated below: Name Position Period of Employment Compensation ❑* Upon motion duly made and unanimously adopted, it was further RESOLVED that the Corporation enter into an employment contract with each of the above upon the terms above specified, and that the Presi- dent and Secretary of the Corporation shall execute the contract on behalf of the Corporation. The Secretary was directed to file a copy of each employment contract with the minutes of this meeting. 'Check if applicable MINUTES OF ORGANIZATIONAL MEETING (Page 3) 1" Additional business: Upon motion duly made and unanimously adopted, it was further RESOLVED that the Corporation seek the transfer of the liquor license from Zedel ' s. The President of the Corporation shall file all the necessary documents with local, state, and federal entities to secure a liquor license. There being no further business to come before the meeting, upon motion duly made and unanimously adopted,the meeting was adjourned. Secretary Appr 467Apprrned: %/J�n Director / of a9'lr' � „ Director Director MINUTES OF ORGANIZATIONAL MEETING (Page 4) OF COto STATE * '�.:,�`'� o RADO 187 - DEPARTMENT OF STATE CER1'lh'1CATE I, DONETTA DAVIDSON, SECRETARY OF STATE OF THE STATE OF COLORADO HEREBY CERTIFY THAT ACCORDING TO THE RECORDS OF THIS OFFICE CANAS ENTERPRISES, INC (COLORADO CORPORATION) FILE # 20001140118 WAS FILED IN THIS OFFICE ON July 19, 2000 AND HAS COMPLIED WITH THE APPLICABLE PROVISIONS OF THE LAWS OF THE STATE OF COLORADO AND ON THIS DATE IS IN GOOD STANDING AND AUTHORIZED AND COMPETENT TO TRANSACT BUSINESS OR TO CONDUCT ITS AFFAIRS WITHIN THIS STATE. Dated: July 19, 2000 • laga Lahe>4-). SECRETARY OF STATE ■ ■ Aug. 9. 2000 2: 43P I STGCO BRIGHTON No. 0918 P. 2/9 The printed portions of mi. (rum nppreven by the Colorado Real Estate Conmtiesioa (NM 32.3.95) IP THIS FORM IS USED IN A CONSUMER CREDRTRANSACTON,CONSULT LEO.,AL COUNSEL PIN IS a LC)AL Nor ROMfNI IF NOT UNDERSTOOD.L.a.CiAL TAX OR OTHER COUNSEL Sttotlu)utt CONSULTED BEFORE SIONINO. PROMISSORY NOTE (UCCC•NO DEFAULT RATE) ass 5P1 111111 0f ^err T,:trsrnn .Colorado epettamhnr (,, 21100 (. FOR VALUE RECP.NRD,die undersigned(Burrower)premise(..)lo Pay Zadel Enterpri sas, Inc. , a Colorado Corporation or orda,(Note Mother)the principal.,um of SIX HUNDRED EIGHTY THOUSAND AND NO..'".1.00 .• U.S.Dollars.with interest on the unpaid principal balance from Stop l-wmhor ti 2 n o t1 ,until paid.at the rate of t 250 pematt per annum. Principal and interest shall bcpayahleat 1115 •nrle Sr rest e'r rh r,t)rr^tn. f'n 80621 Holder,w. designate.in 1 7 0 .or such otter place As do Note y gn payments of FT1t1, THOUSAND MTVM 7-1TMTTIRrIl NTNRTV t'MTR nun 3 el/1.10 Delius(as.s S. S94.)9 ).due on the 1st dny of end, Month beginning re—l i ' r I ,(1011 Such payments shall continue until the entire indebtedness evidenced by due Note Li fully paid: provided.however, if mat sooner paid, the entire principal amount outstanding and sure:d interest thmcon.shell be due and payable ( ell 9/1.'2010 2. Reviewer shalt pay to the Note Holder agate charge of S .000 ^b nl any payment not received by the Note Holder within 10 Jays after the payment is due. t. Psymcnte re eived far application La this Note shall he applied first to the payment of late charges.if any,.second to the payment of accrued interest specified above,and the balance applied in reduction of the principal amount hereof. 4. If any payment required by this Sole u not paid when due.the entire principal amount ommanding and a.turd iumreal doe um shag Income duo and payable at the option of the Note IHohln lAceal4tdion)twenty days after ratite of Acetier:Mt n list tea given. This time pet lad shall run coneirrently whit the right to cute,if any,allowed by doe Uniform Consumer Credit Code. Such notice of Acceleration shell specify the amount of the nonpayment plus any unpaid late charges and other coils.eapraree and fees dee tinder this Note, Until the expintm,of snit twcuty.dny period,the garruwer may Cure all defaults consisting of a failure to make required payments by tendering to amounts of all unpaid sums due at the time of tender,without Acceleration as specified by the Note Holder in such notice. pare restores the Dorrowwar In her rights motet this Noe as Inapt'defaults had nut occured. Any defautta tinder this Mute occurring within twelve months after the Note Holder has mice given a notice of Acceleration,entitles borrower ro me right to cure.except as otherwise provided by law. The Nut:Holder shall be molded to collect all reasonable umns and expense of collection and/or suit.including.but nor limited to reasonable attorneys'fees, �.. .. Borrower may prepay tltc principal amount outstanding under this Note,in whole or in part.at any time without penalty. Any partial prepayment shell b: applied against the principal amount outstanding and shall not postpone the duo date of any subsequent payments or change the amount of such payments. Na.STD 124.95. PROMInSORY Nutt Ma a UO1s6G2A00 / �6 DCPN9795 Aug. 9, 2000 2:44PMM STGOO BRIGHTON No. 0918 P. 3/9 \., A, borrower:rod all other makes,mtretiu.guarantors.and endorsers hereby waive presentment.notice of dishonor and protest.and they hereby agree to any extensions of time of payment and partial payments Infect,at,or after maturity. 'Mir Note shall be the joint and'coca t>Itligatiuh of prnrower and all other makers,sureties.gumentore and endorsers,am)their successors and wedge%. 7. Any notice to Borrower provided for in this Note shalt be in writing nod shall he given and he effective upon(I)dative,y to borrower or(2)mailing such notice by tlrst.class U.S.mall.addressed to Danrahwcn at the farmwei s adder-so tutted below,or to.such other addreu as Nrornwer may daignele by native to the Note Holder. My notice to the Note Holder shall be in writing and shall be given and be effective upon(I)delivery to Note Holder or(2)by mailing such notice by nrm•eleu U.S.mall.to the Note Holder at the address staled In the Oral paragraph of this Notn,or to inch other address as Noir Holder may designate by notleeto Borrower. 8, The indcmalaau evidenced byttie Nete is.secured by a Deed of Trust dated 5eotetrper 6, 2000 .and until released said Deed of Trutt contains additional rights of the Note Holder, Such rights may carne Accolendi,n at the indebtednac evidenced Ivy this Note. Referenee is made to said Deed of Trust for'itch additional al firma. Said Peed of Mist grants rights in the property ideutifhed u follows: Parcel 1: All that part of the West 1/2 of the Northeast 1/4 of Section 6, in Township 1 North, of Range 66 West of the 6th P.M. , Weld County, Colorado, described as follows: Beginning at a point 319 ,5 feet West of the Southeast corner of the West 1/2 of the Northeast 1/4 of said Section 6, thence East 1S0 feat, thence North 409 feet; thence West 150 feet; thence South 409 feat to the point of beginning, except that portion of the above described property platted as The Homestead, recorded July 9, 1982 in Book 972 at Reception No. 1897025, Weld County Records, County of Weld, State of Colorado. CParcel 2: That part the West 1/2 of the Northeast 1/4 of Section 6, Township 1 North, Range 66 West of the 6th P.M. , in the Town of Fort Lupton, Weld County, CONTINUED Propeny oddn.sr: 217 1st Street Fort Lupton ,Colorado 80621 (CAUTION: SIGN ORIGINAL NO'II1 ONLY/RETAIN COPY) Fernando Cants Martha Cants Borrower's address; 915 Hoover AVentdt Fort Lupton, CO 80621 KEEP THIN NOTE IN A SAFE MACE. TIIB ORIGINAL OF THIS NOTE MUST BE EXHIBITED TO THB PUBLIC'1'RUSTF.E IN ORDER TO �... RELEASE A DEED OP TRUST SECURING THIS NOTL Pile M ufnalA2Adn • Mg. 9. 2000 2:44PM STGC0 2RIGET N No. 0918 P. 4/9 C 217 1st Street CONTINUATION 01 LEGAL DESCRIPTION Colorado, described as follows; Beginning at the Southeast corner of the West 1/2 of the Northeast 1/4, thence North 204.5 feet; thence West 169 .5 feet.; thence South 204 . 5 feet to the South line of the Northeast 1/4; thence East 169 .5 feet to the point of beginning. Except the East 20 feet thereof, being Fulton Street, (See Requirement. No. 1, Schedule B - Section 1, herein) County of Weld, State of Colorado. ll .. { !le N u01IIS61A0C (t,?4 Hello