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HomeMy WebLinkAbout2024-04-09 VLHA Agenda 2 3 4 Vail Local Housing Authority Minutes Tuesday, March 26, 2024 3:00 PM Virtual on Zoom PRESENT ABSENT Steve Lindstrom Craig Denton Kristin Williams Dan Godec James Wilkins STAFF George Ruther, Housing Director Missy Johnson, Housing Coordinator 1. Call to Order 1. 1 Call to Order at 3:09 p.m. 1.2 Zoom Meeting 1 (Pre-Executive Session) 2. Citizen Participation 2.1 Citizen Participation No comment. 3. Approval of Minutes 3.1 VLHA March 12, 2024 Minutes Presenter(s): Missy Johnson, Housing Coordinator MOTION: Williams SECOND: Wilkins PASSED: (3 - 0) 4. Main Agenda 4.1 Grant Applications Update Presenter(s): George Ruther, Housing Director Time: 15 Min. Lindstrom updated the group regarding a recent meeting. A grant application for congressionally directed funding is ready to submit. Ruther added that it is being submitted for Timber Ridge for an amount TBD. The funding of the grant is applicable after May 2025 if it is awarded. 4.2 Rural Resort AMI Adjustment Petition Presenter(s): George Ruther, Housing Director Time: 15 Min. The rural resort AMI adjustment position is the next initiative on the list. This has been granted in other resort areas already, and it is likely to be granted within the Town of Vail. The petition will come back to the Vail Local Housing Authority prior to it going to Town Council. 5 4.3 Timber Ridge Deed Restriction Discussion Presenter(s): George Ruther, Housing Director Time: 15 Min. Ruther provided background that we are wrapping up with the Timber Ridge Website as a source for sales information. The deed restrictions will be refined and posted. The current plan is for the 294 homes, 165+/- homes will be sold to businesses, 43 homes kept for the Town of Vail as rentals, 10 allocated for Habitat for Humanity and the remainder kept for individuals/employees to purchase. Questions have come up regarding the policy objectives that are being sought through these deed restrictions. When it comes to businesses, the entities can own these as we are most concerned with who lives in the residence. Authority comments that while the business ownership should not be a back door to get one but that it is supported, and could look much like Vail InDEED. Question arose regarding not owning another home in Eagle County and the variety of ways the deed restrictions could direct ownership. There are many similarities between the drafted deed restrictions between individual and business ownership. Questions presented and options for consideration: o Do we keep the price appreciation cap for the individuals? o Shall we consider an inflation index reflective around the price appreciation cap? o Consideration of the market rates vs. lotteries, price appreciation and tracking of capital improvements? o Should it be intended that businesses only sell to businesses and individuals only sell to individuals? If it is sold to the other, it could need a change of deed restriction. o Consideration to keep it simple and boil it down to a qualified employee/tenant. o Consideration of Right of First Refusal to sell to local businesses. o Consideration of allowing businesses to participate in lotteries along with individuals. o Continue to be a problem solver for housing for the workforce, by supporting opportunities for small business owners to purchase housing for employees. o Remember that we are trying to create housing opportunities, creating value and creating and at the same time provide a fundamental gain and attainability. o Consideration to keep it simple on the administrative side as the number of deed restrictions continue to rise in many years to come. o Do we allow the market to drive the sales process moving forward? We have not seen problems with the transfer of Vail InDEED homes and the market drives the sales price. o The Authority will firm up thoughts around the Timber Ridge deed restrictions to present to the Town Council for consideration and we want to be sure we get it right. It will likely be set for a work session with Town Council on Tuesday, April 16th. o Wilkins left the meeting at 4:00 p.m. without anything else to vote on. 5. Matters from the Chairman and Authority Members 5.1 Matters from the Chairman and Authority Members Presenter(s): Steve Lindstrom, VLHA Chairman Time: 5 Min. Town Manager, Russell Forrest joined the discussion portion of the meeting, focusing on the Town Council Goals as part of the Strategic Planning session. 6 There were focus groups with a very diverse group of community members and there was a strong level of alignment focused on Community. Housing was part of the topic of course but also, are we able to connect with the under age of 40 community moving forward. Forrest shared information around goals such as: A.1 By 2027, 100 new deed restricted housing units will be created. A.2 By 2029, X% of Vail homes will be occupied compared to 33% in 2024. A. 3 By 20XX, we will improve the % of full time residents occupying Vail deed restricted homes from 15% to x %. A. 4 By 2029, Vail residents will experience a continuum of mixed housing opportunities ranging from seasonal housing to retirees including apartments and condos, town homes, point access blocks, and, where possible, duplexes and triplexes, single family homes. Forrest referred to current housing usage and the vision that will get the Town of Vail to the 2027 Housing Goal so the Council is interested in determining what is next. In review of the numbers, it is clear to work towards determining which of the unoccupied homes can be re- allocated as deed restricted units and to ramp up Vail InDEED numbers in effort to achieve the goals. Maybe there shall be an additional goal to increase the number in the permanent population, even if it is not through home ownership. th Ruther suggested to add this topic to the April 9 Authority meeting. Continuing along with Matters, Lindstrom updated the group that the new Housing Policies passed and we want to look to keep these front of mind. Lindstrom updated the group regarding the recent PEC meeting. Timber Ridge is moving along with a Sales Website in the works and Timber Ridge current residents will move out by end of April. Williams provided a draft letter for the Authority to review this week. th The State Land Board responses to the RFP will come back on April 17. The Town closes on the CDOT parcels this week, with years in the making and will close on 2 rd of 3. The 3 acquisition continues. 6. Executive Session 6.1 Executive Session per C.R.S. §24-6-402(4)(a)(e) - to discuss the purchase, acquisition, lease, transfer or sale of real, personal or other property interests and to determine positions relative to matters that may be subject to negotiations regarding: Vail InDEED application. The executive session was cancelled. 7 7. Adjournment 7.1 Adjournment 5:00 PM (Estimate) Meeting was adjourned at 5:00 p.m. 8. Future Agenda Items First VLHA Budget Supplemental Bonds Work Session EHU Occupancy Survey 9. Next Meeting Date 9.1 Next Meeting Date April 9, 2024 8 9 : 21 February16, 2024 The Fire Marshals Association of Colorado (FMAC) is opposed to HB24-1239, Single-Exit Stairway Multi- FamilyStructure, as introduced.This proposed bill is too broad and does not provide sufficient detail as to the specific building type this would apply to.There is no limit on the number of dwelling units or square footage of the multi-familystructureswhich would allow large buildings to only require one exit. Simply limiting the number of stories is not adequate. Additionally, Section 1 line 10 and Section 2line 20 specifies this bill applies to R-2 occupancies; currently adoptedbuilding codes includehotels, motels, dormitories, fraternities, and timeshare properties as other examples of R-2 occupancies. So,this will have a wider impact than simply just apartment buildings. Furthermore, it does notofferany requirements to provide an equal level of life safetyin place of the currently required second exit. There are established code development processes through the International Code Council(ICC)and National Fire Protection Association(NFPA)in whichto change the modelcodes. aƚķźŅǤźƓŭƒƚķĻƌ ĭƚķĻƭ ƚǒƷƭźķĻ ƚŅ Ʒŷźƭ ƦƩƚĭĻƭƭͲĭźƩĭǒƒǝĻƓƷƭ ƷŷĻƭĭƩǒƷźƓǤ ƚŅ ƷŷĻ ĭƚķĻ ķĻǝĻƌƚƦƒĻƓƷ ƦƩƚĭĻƭƭĻƭğƓķ ķƚĻƭƓƚƷ ĭƚƓƭźķĻƩ ƷŷĻ źƒƦğĭƷƭ ƚŅ ƚƷŷĻƩ ĭƚķĻ ƦƩƚǝźƭźƚƓƭ ğƭ ǞĻƌƌ ğƭ ƚƷŷĻƩ ĭƚķĻƭ ǞŷĻƓ ķƚƓĻ źƓ Ʒŷźƭ ƒğƓƓĻƩ. While we understand this bill is an effort to provide affordable housing, additional safety provisions from the loss of egress can come in many forms andwould add to the cost of construction and building maintenance over the life of the building. The fire code community strives to be proactive and reduce risk, but this bill as introducedwill put the fire service in a reactive position in addressing this requirement. Not following internationally adopted measures to change model codes as well as putting the fire service in a reactionary position will reduce the life safety of not only the occupants but also the emergency response personnelthat would answer the callin the event of an emergency. Withthat said,FMACrecommends, at minimum, the state of Colorado convene an inclusiveworking group to consider language that would allow local jurisdictions to permit a single stair R-2 up to 5stories under certain conditions including,but not limited to,fire department response capabilities. This is currently being done within the states of Washington and California. We encourage the proponents to work with individual local governments to determine if there are parameters that would allow the single- stair conceptwithin their specific jurisdictions.Until a larger in-depth conversation can be had, we will oppose HB24-1239. Sincerely, Steven Parker FMAC Past President and Legislative Chair Steven.parker@arvadafireco.gov 22 IAFC Board of Directors Position Statement Reducing Stairs in Residential Buildings Higher Than Three Stories Creates Escape Hazards for Occupants and Inhibits Vital Emergency Response Operations. The Issue at Hand: 1 A concerning trend towards deregulation seeks to eliminate the current code requirements for R-2 residential buildings, driven by purported benefits such as increased housing availability and reduced costs. It really endangers occupants and inhibits emergency response operations. The consensus process has been used for decades to reflect all parties’ interests. These proposals, backed by developers, builders, and urban planners, bypass the established National Code Consensus process, leading to local exceptions and allowances that jeopardize occupant and firefighter safety. The Importance of Two Staircases: The requirement for two separate staircases in residential buildings above three stories is grounded in scientific research and the consensus code process. This provision ensures vital redundancy in egress options, crucial for occupant evacuation and firefighter access during emergencies. It is founded on the principle of safeguarding lives and is not to be compromised for short-term gains. Addressing Contemporary Fire Challenges: Modern hazards, such as those posed by lithium-ion battery-powered devices, underscore the need to be able to exit a building quickly and safely in an emergency. The proliferation of such risks necessitates stringent adherence to building codes that prioritize occupant and firefighter safety, with the inclusion of a second staircase serving as a cornerstone of this protective framework. Enhancing Safety and Accessibility: Beyond its life-saving implications, the provision of two staircases enhances the efficiency, convenience, and inclusivity of residential living environments. It mitigates congestion, promotes equitable access for individuals with mobility challenges, and fosters a more welcoming community for all residents. This is especially important when more and more combustible products, including delivered packages and vanity trash collection services add potential fuel loads into the corridors. 1 R-2 type building. What is involved, the R-2 Residential occupancies contain sleeping units of more than two dwelling units where the occupants are primarily permanent in nature. This includes: Apartment houses, Boarding houses (not transient), Convents, Dormitories, Fraternities and sororities, Hotels (nontransient), Monasteries, Motels (nontransient), Vacation timeshare properties. 1 23 Considering Long-Term Implications: While critics may raise concerns about construction costs and usable floor space, the benefits of retaining the two-staircase requirement far outweigh these considerations. Moreover, amendments to model codes can impact insurance ratings and lead to increased costs and unnecessary risks for both the public and emergency responders. Submitted by the Fire & Life Safety Section Board The International Association of Fire Chiefs, represented by its Fire & Life Safety Section (FLSS), hereby declares its unwavering support for the retention of the requirement for a second staircase in R-2 residential structures exceeding three stories. This position is vital to enable fire and emergency services to respond effectively to incidents, safeguarding both occupants and firefighters. Call to Action: The IAFC urges fire service leaders to vehemently oppose legislative attempts to amend out the second staircase requirement. It is imperative to engage with urban planners, legislators, and the building community, providing informed perspectives to ensure the safety of communities and the welfare of those who serve them. In conclusion, the IAFC reaffirms its commitment to advocating for measures that prioritize safety in residential structures, emphasizing the irreplaceable value of two staircases in ensuring the well-being of occupants and responders alike. The International Association of Fire Chiefs, through its Fire & Life Safety Section (FLSS), is adopting this position paper on the need to continue the requirements for a second staircase in R-2 residential structures above three stories so the fire and emergency service can better respond to incidents effectively. 2 24 25 MEMORANDUM To:Vail Local Housing Authority From: Martha Anderson, Town of Vail Senior Housing Coordinator Date: April 9, 2024 Re: Resolution No. 3 Series of 2024 – 2024 Vail Local Housing Authority Supplemental Budget I. Background The mission of the Vail Local Housing Authority (VLHA) is to be an advisory council to Town Council on housing matters. The VLHA recommends housing policies, strategic long-term planning, coordinates housing initiatives with Town staff and approves the VLHA budget. The VLHA emphasis is on affordable housing initiatives and works to ensure there is deed restricted housing for at least 30% of Vail’s workforce in Vail. The Vail Local Housing Authority’s 2024 Budget was adopted in December 2023. Budgeted expenditures totaled $74,870. Since then, the VLHA has requested to supplement additional funds. Expenditures in this supplemental reflect an increase of $40,500, a 54%, from the original 2024 budget. The 2024 proposed amended budget will total $115,370. With the above proposed adjustments, the VLHA’s fund balance is projected to be $337,500 at the end of 2024. IV. Supplemental Expenditures The VLHA’s supplemental includes an increase in expenditures totaling$40,500. This includes a $25,500 contract with Social Impact to support the planning, preparing, and submittal of housing grant proposals; researching and identifying funding opportunities; and collaborating with local partners to submit innovative housing proposals for affordable housing 26 on behalf of the Vail Local Housing Authority and the Town of Vail. The contract includes the following: Plan, prepare and submitat least two proposals: The Congressionally DirectedSpending proposal and the DOLA Local Capacity Building grant or the Middle-IncomeHousing Authority grant. Submit a petition to increase the AMI levels in Vail to support future grant opportunities through Prop 123. A total of $15,000 is also included to support proposed expedited zoning and developmental review procedures in the Town of Vail with the purpose of effectuating workforce housing in an efficient and equitable manner. 2 | Page Town of Vail 27 2024 BUDGET SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE VAIL LOCAL HOUSING AUTHORITY 2024First2024 Amended BudgetSupplementalBudget Revenue Middle Creek Revenue Share / Mgmt Fee$ 16,700$ -$ 16,700 7,866 - 7,866 Interest Income Ground Lease Revenue 35,000 - 35,000 Total Revenue 59,566 - 59,566 Expenditures Accounting Fees 2,500 - 2,500 Operating, Maintenance & Contracts 72,370 40,500 112,870 Total Expenditures 74,870 40,500 115,370 Revenue Over (Under) Expenditures (15,304) (40,500) (55,804) Beginning Fund Balance 393,304 393,304 Ending Fund Balance $ 378,000$ 337,500 28 RESOLUTION NO.3, SERIES 2024 VAIL LOCAL HOUSING AUTHORITY A RESOLUTION ADOPTING A BUDGET AND MAKING APPROPRIATIONS TO PAY THE COSTS, EXPENSES AND LIABILITIES OF THE VAIL LOCAL HOUSING AUTHORITY, FOR ITS FISCAL YEAR JANUARY 1, 2024 THROUGH DECEMBER 31, 2024. WHEREAS, the Vail Local Housing Authority board received and approved the budget for the fiscal year 2024 on December 12, 2023; and WHEREAS, in accordance with CRS section 29-1-106 a notice of budget hearing has been published; and WHEREAS, notice of this public hearing to consider the adoption of the proposed Vail Local Housing Authority budget was published in the VAIL DAILY on the 2ndday of April, 2024; and NOW THEREFORE, LET IT BE RESOLVED by the Vail Local Housing Authority of Vail, Colorado, as follows: The Vail Local Housing Authority boardadopts the submitted budget and appropriates $115,370 in expenditures beginning on the first day of January, 2024, st and ending on the 31 day of December, 2024. Attested: Signed: _______________________________ ___________________________________ Martha Anderson, VLHA, Secretary Steve Lindstrom, Chair, VLHA 29 2: DEED RESTRICTION AGREEMENT FOR THE OCCUPANCY AND TRANSFEROF TIMBER RIDGE NEIGHBORHOOD RESIDENTIAL DWELLING UNITS (EMPLOYEE UNITS) THIS DEED RESTRICTION AGREEMENT (the "Agreement") is entered into this _______ day of _______________, 20__ (the "Effective Date") by and between the Town of Vail, Colorado, a Colorado home rule municipality with an address of 75 South Frontage Road, Vail, CO 81657 (the "Town"), and Triumph Timber Ridge LLC, a ____________ with an address of ___________________ ("Triumph") (each a "Party" and collectively the "Parties"). WHEREAS, Triumph owns the real property described asUnit ___, Timber Ridge Neighborhood, Town of Vail, Colorado (the "Property"), and together with the Town, has developed the Property as part of the Timber Ridge Neighborhood employee housing project; WHEREAS, Triumph is selling the Property to an individual buyer; and WHEREAS, prior to such sale, the Parties wish to permanently restrict the occupancy, use and resale of the Property. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: 1. Property. The Property is hereby burdened with the covenants and restrictions specified in this Agreement, in perpetuity. 2. Definitions. For purposes of this Agreement, the following terms shall have the following meanings: a. Guidelines means the current version of the Timber Ridge Neighborhood Employee Housing Guidelines adopted by the Town. The version adopted as of the Effective Date is attached hereto as Exhibit 1 and incorporated herein by this reference. b. Maximum Resale Price means the Purchase Price paid by the last Qualified Buyerplus: an increase of 1.5% per annum of such Purchase Price (prorated at the rate of 1/12 for each whole month) from the date of Owner's purchase of the Property to the date of the Owner's execution of the listing contract, such percentage increase to not be compounded annually; and the value of Permitted Capital Improvements. c. Non-Qualified Owner means any person who acquires an ownership interest in the Property who is not a Qualified Owner. d. Owner means any person who acquires an ownership interest in the Property, including without limitation Qualified Owners, Non-Qualified Owners and Inheriting Owners. 1 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 31 e. Permitted Capital Improvements means those improvements to the Property performed by the current Owner as described in the Guidelines, which shall qualify for inclusion within the calculation of Maximum Resale Price if the Owner furnishes the Town with the following information: i. Original or duplicate receipts to verify the actual costs expended by the Owner for the Permitted Capital Improvements; ii. An affidavit verifying the receipts are valid and correct receipts tendered at the time of purchase; and iii. True and correct copies of any building permit or certificate of occupancy required to be issued by the Town for the Permitted Capital Improvements. f.Principal Place of Residence means the home or place in which one's habitation is fixed and to which one has a present intention of returning after a departure or absence therefrom. In determining what is a Principal Place of Residence, the Town shall consider the criteria set forth in C.R.S. § 31-10-201(3), as amended. g. Purchase Price means all consideration paid by a Qualified Buyerfor the Property but excludes: any proration amounts, taxes, costs and expenses of obtaining financing; costs of furnishings or personal property; lenders' fees; title insurance fees; closing cost; inspection fees; and real estate purchase or sales commission(s). h. Qualified Buyer means the Town or a person who, upon purchase of the Property, will be a Qualified Owner. i. Qualified Owner means an Owner who is an individual who: works an average of 30 hours or more per week at a business in Eagle County, Colorado that holds a valid and current business license, or pays sales taxes, or is otherwise generally recognized as a legitimate business; and earns at least 75% of their income from such business. For example, if an individual worked 60 hours per week for one half of the year at such a business in Eagle County, Colorado, and worked elsewhere for the other half of the year, such person would be a Qualified Owner. A Qualified Owner also includes an individual who: was a Qualified Owner when the individual purchased the Property, but then retired while owning the Property; was 60 years of age or older at the time of retirement; for the 5 years immediately prior to retirement, worked an average of 30 hours or more per week at a business in Eagle County, Colorado that held a valid and current business license, or paid sales taxes, or was otherwise generally recognized as a legitimate business; earned at least 75% of their income from such business during such 5-year period; and does not work for a business outside of Eagle County, Colorado. j. Qualified Tenant means an individual who works an average of 30 hours or more per week at a business in Eagle County, Colorado that holds a valid and current business license, or pays sales taxes, or is otherwise generally recognized as a legitimate business. For example, if an individual worked 60 hours per week for one half of the year at such a business in Eagle County, Colorado, and worked elsewhere for the other half of the year, such person would be a Qualified Tenant. 2 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 32 k. Transfer means any sale, conveyance, assignment or transfer, voluntary or involuntary, of any interest in the Property, including without limitation a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest and an interest evidenced by any contract by which possession of the Property is transferred and an Owner retains title; provided that the lease of a room or rooms within the Property to a Qualified Tenant in accordance with this Agreement shall not constitute a Transfer. 3.Occupancy Restrictions. a.The Property shall be continuously occupied by at least one Qualified Owner astheir principal place of residence. If a Qualified Owner ceases to occupy the Property as their principal place of residence, the Qualified Owner shall immediately contact the Town to Transfer the Property pursuant to Section 4 hereof. An Owner shall be deemed to have changed their principal place of residence by becoming a resident elsewhere or accepting permanent employment outside of Eagle County, Colorado. b. The Qualified Owner may lease a room or rooms within the Property, but onlyto one or more Qualified Tenants, and provided that the Qualified Owner still occupies the Property as their principal place of residence. Leases of less than 30 days or more than 6 months are prohibited, provided that a Qualified Tenant may renew a 6- month lease without limitation. c. No business activity shall occur on or within the Property, other than as permitted within the zone district applicable to the Property. d. If at any time a Qualified Owner also owns any interest alone or in conjunction with others in any developed residential property or dwelling unit located in Eagle County, Colorado, the Qualified Owner shall immediately list said other property or unit for sale to sell the Qualified Owner's interest in such property at a sales price comparable to like units or properties in the area in which the property or dwelling unit is located. If said other property or unit(s) has not been sold by the Qualified Owner within 120 days of its listing, the Qualified Owner shall immediately contact the Town to Transfer the Property pursuant to Section 4 hereof. It is understood and agreed that, in the case of a Qualified Owner whose business is the construction and sale of residential properties or the purchase and sale of such properties, the properties which constitute inventory in the business shall not constitute other developed residential property or dwelling unit as those terms are used in this Section. st f. No later than February 1 of each year, Owner shall submit one copy of a sworn affidavit,on a form provided by the Town, verifying thatthe Property is occupied in accordance with this Agreement and the Guidelines. g. Should the Town acquire possession of the Property for any reason, the Town may lease the Property subject to the terms of this Agreement. 4. Transfer. a. The Owner shall first notify the Town that the Owner wishes to Transfer the Property. The Town shall have the first option to purchase the Property, exercisable within 3 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 33 a period of 15 days after receipt of notice, and if the Town exercises its right and option, the Town shall purchase the Property from theOwner for a price equaltothe Maximum Resale Price, or the appraised market value, whichever is less. b. Should the Town determine not to purchase the Property, Ownershall list the Property for sale in accordance with the Guidelines, and shall thereafter select a Qualified Buyer pursuant to the Guidelines. c. The Property shall be transferred only to the Town or a Qualified Buyer, and shall not be sold for more than the Maximum Resale Price. d. At closing, the Qualified Buyer shall execute, in a form satisfactory to the Town and for recording with the Eagle County Clerk and Recorder, a document acknowledging this Deed Restriction and expressly agreeing to be bound by it. 5. Effect of Transfer to a Non-Qualified Owner. a. If for any reason the Property is transferred to a Non-Qualified Owner, the Non-Qualified Owner shall immediately contact the Town to Transfer the Property pursuant to Section 4 hereof. b. The Non-Qualified Owner shall execute any and all documents necessary for the Transfer. c. A Non-Qualified Owner shall not: occupy the Property; rent any part of the Property; engage in any business activity in the Property; or Transfer the Property except in accordance with this Agreement. 6. Transfer by Devise or Inheritance. a. If a Transfer occurs by devise or inheritance due to death of an Owner, the personal representative of the Owner's estate or the person inheriting the Property (the "Inheriting Owner") shall provide written notice to the Town within 30 days of the date of death. b. If the Inheriting Owner is a Qualified Owner, theyshall provide the Town with documentation proving theirstatus as such, and the Town may determine if the Inheriting Owner is in fact a Qualified Owner. If the Inheriting Owner fails to provide the required documentation, they shall be deemed a Non-Qualified Owner. If the Inheriting Owner is a Qualified Owner, they shall succeed inthe Qualified Owner's interest and obligations under this Agreement. c. If the Inheriting Owner is a Non-Qualified Owner, the Inheriting Owner shall Transfer the Property pursuant to Section 4 hereof. 7. Consensual Lien; Right to Redeem. For the purpose of securing performance under this Agreement and creating in favor of the Town a right to redeem in accordance 4 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 34 with Part 3 of Article 38 of Title 38, C.R.S., as amended, Triumph hereby grants to Town a consensual lien on the Property. Such lien shall not have a lien amount. 8. Breach. a. It shall be a breach of this Agreement for an Owner, Qualified Buyer or Qualified Tenant to violate any provision of this Agreement, or to default in payment or other obligations due to be performed under a promissory note secured by a first deed of trust encumbering the Property. b. If the Town has reasonable cause to believe that an Owner, Qualified Buyer or Qualified Tenant is violating this Agreement, the Town may inspect the Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner or Inheriting Owner with 24 hours written notice. This Agreement shall constitute permission to enter the Property during such times upon such notice. c. If the Town discovers a violation of this Agreement, the Town shall notify the Owner, Qualified Buyer or Qualified Tenant of the violation and allow 15 days to cure. 9. Remedies. a. Any Transfer in violation of this Agreement shall be wholly null and void and shall confer no title whatsoever upon the purported buyer. Each and every Transfer, for all purposes, shall be deemed to include and incorporate by this reference the covenants contained in this Agreement, even if the Transfer documents fail to reference this Agreement. b. The Town may pursue all available remedies for violations of this Agreement, including without limitation specific performance or a mandatory injunction requiring a Transfer of the Property, with the costs of such Transfer to be paid out of the proceeds of the sale. c. Upon request by the Town, each Owner authorizes the holder of any mortgage or deed of trust against the Property to disclose to the Town if any payments due are delinquent and the duration and amount of such delinquency. d. Any violation of this Agreement shall cause the Maximum Resale Price to freeze and remain fixed until the date such violation is fully cured. e. In addition to the specific remedies set forth herein, the Town shall have all other remedies available at law or equity, and the exercise of one remedy shall not preclude the exercise of any other remedy. 10. Foreclosure. a. An Owner shall notify the Town, in writing, of any notification received from a lender of past due payments or defaults in payments or other obligations within 5 days of receipt of such notification. 5 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 35 b. An Owner shall immediately notify the Town, in writing, of any notice of foreclosure under the first deed of trust or any other subordinate security interest in the Property, or when any payment on any indebtedness encumbering the Property is required to avoid foreclosure of the first deed of trust or other subordinate security interest in the Property. c. Within 60 days after receipt of any notice described herein, the Town may (but shall not be obligated to) proceed to make any payment required to avoid foreclosure. Upon making any such payment, the Town shall place a lien on the Property in the amount paid to cure the default and avoid foreclosure, including all fees and costs resulting from such foreclosure. d. Notwithstanding any other provision of this Agreement, in the event of a foreclosure, acceptance of a deed-in-lieu of foreclosure, or assignment, this Agreement shall remain in full force and effect, including without limitation Section 4 hereof, restricting Transfer of the Property. e. The Town shall have 30 days after issuance of the public trustee's deed or the acceptance of a deed in lieu of foreclosure by the holder in which to purchase by tendering to the holder, in cash or certified funds, an amount equal to the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the holder related to the foreclosure. 11. Miscellaneous. a. Modification. This Agreement may only be modified by subsequent written agreement of the Parties, provided that, if the Town obtains title to the Property, the Town may modify or terminate this Agreement at any time. b. Integration. This Agreement and any attached exhibits constitute the entire agreement between the Parties, superseding all prior oral or written communications. c. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, successors and assigns. d. Severability. If any provision of this Agreement is determined to be void by a court of competent jurisdiction, such determination shall not affect any other provision hereof, and all of the other provisions shall remain in full force and effect. e. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado, and any legal action concerning the provisions hereof shall be brought in Eagle County, Colorado. f. Third Parties. There are no intended third-party beneficiaries to this Agreement. g. No Joint Venture. Notwithstanding any provision hereof, the Town shall never be a joint venture in any private entity or activity which participates in this 6 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 36 Agreement, and the Town shall never be liable or responsible for any debt or obligation of any participant in this Agreement. h. Notice. Any notice under this Agreement shall be in writing, and shall be deemed sufficient when directly presented or sent pre-paid, first class United States Mail to the Party at the address set forth on the first page of this Agreement, or, if the Property has been transferred to a subsequent Owner, the Owner's address on file with the Eagle County Assessor. i. Recording. This Agreement shall be recorded with the Eagle County Clerk and Recorder. The benefits and obligations of Triumph under this Agreement shall run with the land, and shall be binding on any subsequent holder of an interest in the Property. j. Savings Clause. If any of the terms, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Agreement are held to be unlawful or void for violation of: the rule against perpetuities or some analogous statutory provision; the rule restricting restraints on alienation; or any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the current duly elected and seated members of the Vail Town Council, their now living descendants, if any, and the survivor of them, plus 21 years. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. TOWN OF VAIL, COLORADO ________________________________ Kim Langmaid, Mayor ATTEST: _____________________________ Stephanie Bibbens, Town Clerk 7 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 37 TRIUMPH By:________________________________ STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of ___________________, 20_, by ________________ as _____________ of Triumph Timber Ridge LLC. Witness my hand and official seal. ______________________________ Notary Public (S E A L) My commission expires: 8 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 38 EXHIBIT 1 TIMBER RIDGE NEIGHBORHOOD EMPLOYEE HOUSING GUIDELINES (EMPLOYEE UNITS) 1. General. These Guidelines are intended to supplement the Deed Restriction Agreement for the Occupancy and Transfer of the Timber Ridge Neighborhood Residential Dwelling Units (Employee Units) (the "Deed Restriction"). These Guidelines may be updated by Town staff as necessary, and the current version of these Guidelines shall always control over any prior version. In the event of any conflict between these Guidelines and the Deed Restriction, the Deed Restriction shall control. 2. Occupancy. a. Leasing. If an Owner leases the Property, the lease shall include a clear reference to the Deed Restriction and a brief summary of the Deed Restriction, and shall by reference incorporate the terms and conditions of this Deed Restriction. Copies of all leases shall be filed with the Town during the annual verification process. b. Leave of Absence. A leave of absence may be granted for one year, subject to Town approval, upon clear and convincing written evidence which shows a reason for leaving and a commitment to return to the Town. Such written evidence shall be presented to the Town at least 30 days prior to leaving. The Leave of Absence shall be for one year and may, at the discretion of the Town, be extended for one year, but in no event shall it exceed two years.The Property must be rented during the leave to one or more Qualified Tenants in accordance with the Deed Restriction. c. Disability. Should a Qualified Owner become an individual with a disability and, because of such disability, be unable to meet the requirements of the Deed Restriction to remain a Qualified Owner, the Qualified Owner shall notify the Town, in writing, of the nature of the disability. If the disability is permanent, the Qualified Owner shall remain a Qualified Owner despite the disability. If the disability is temporary and the Qualified Owner becomes able to return to work, to remain a Qualified Owner, the Qualified Owner must return to work when the disability ceases. Notwithstanding anything to the contrary in these Guidelines or the Deed Restriction, the Town will make all reasonable accommodations necessary under the Americans with Disabilities Act. 3. Annual Verification. st a. Affidavit. As provided in the Deed Restriction, no later thanFebruary 1of each year,every Owner shall submit a sworn affidavit, on a form provided by the Town, verifying that theProperty is occupied in accordance with the Deed Restriction and these Guidelines. b. Additional Documentation. The affidavit shall be accompanied by the following supporting documentation: i. Verification of current employment and employment during the prior year (paystubs with employer's name, address and contact information); 9 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 39 ii. Signed authorization allowing the Town discuss employment details with the Owner's employer; iii. The Owner's federal income tax return from the prior year, together with an executed Internal Revenue Service Form 8821 or equivalent; iv. If the Property was leased during the prior year, copies of all leases of the Property during the prior year; and v. If the Property was leased during the prior year, the information set forth in subsections i.-iii. for each Qualified Tenant. 4. Permitted Capital Improvements. a. For purposes of determining the Maximum Resale Price, Permitted Capital Improvements shall include only the following: i. Improvements or fixtures erected, installed or attached as permanent, functional, non-decorative improvements to real property, excluding repair, replacement and maintenance; ii. Improvements for energy and water conservation; iii. Improvements for health and safety protection devices; iv. Improvements to add or finish permanent/fixed storage space; v. Improvements to finish unfinished space; or vi. Replacement of the following: new carpet and carpet pad; new hardwood, wood laminate, or tile floors and base; new Energy Star-rated appliances (including without limitation clothes washer and dryer, refrigerator, range, dishwasher and built-in microwave); new baseboard, window casing and interior doors when the entire Property is finished in an identical material and quality; and new kitchen or bathroom countertops. b. Permitted Capital Improvements shall be depreciated as follows: i. 75% of the cost will be included in the Maximum Resale Price if the improvement has been installed within 12 months of listing the Property. ii. 50% of the cost will be included in the Maximum Resale Price if the improvement has been installed in greater than 12 months and less than 36 months of listing the Property. iii. 25% of the cost will be included in the Maximum Resale Price if the improvement has been installed in greater than 36 months and less than 60 months of listing the Property. 10 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 3: iv. No cost will be included in the Maximum Resale Price if the improvement has been installed more than 5 years prior to listing the Property. v. For energy or water conservation Permitted Capital Improvements, including without limitation solar panels, the amount of the cost to be included in the Maximum Resale Price shall be reduced by the amount of any rebates received, and shall then be depreciated by 4% each year. c. The following improvements shall not be considered Permitted Capital Improvements: i.Decks or balconies; ii. Jacuzzis, saunas and steam showers; iii. Repair, replacement or maintenance of existing fixtures, appliances, plumbing and mechanical fixtures; iv. Painting; or v. Decorative items, including without limitation lights and window coverings. d. The following costs shall apply to Permitted Capital Improvements, regardless of the price actually paid, and no additional amounts shall be added for installation, labor or "sweat equity": Carpet and Pad $4.00/square foot Hardwood or Wood Laminate $7.00/per square foot Tile Floor and Base $10.00/square foot Clothes Washer $800.00 Clothes Dryer $800.00 Refrigerator $1,500.00 Range $900.00 Dishwasher $500.00 Over-the-Range Microwave $400.00 Baseboard $5.00/linear foot Window Casing $4.00/linear foot Interior Doors $200.00/door Counter $50.00/square foot Bath Tub Surround $5.00/square foot e. Notwithstanding the costs set forth herein, the amount for Permitted Capital Improvements shall not exceed 15% of the original Purchase Price paid by the Owner selling the Property, provided that, for every 10-year period commencing on the Effective Date, another 15% of the original Purchase Price may be added to the value of the Property for Permitted Capital Improvements. 11 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 41 5. Listing. a.Town's Role. Town staff are not licensed brokers, but instead, act as representatives of the Town and its interests. All sellers and purchasers are advised to consult legal counsel regarding examination of title and all contracts, agreements and documents, at their own expense. b. Advertising. Upon listing, the Town will advertise the sale of the Property in 2 consecutive Friday editions of the Vail Daily, or in any other manner deemed appropriate by the Town. c. Open Houses. The Town will coordinate with the selling Owner to establish two open house dates when the Property may be viewed by interested parties. e. F ee. Prior to or at closing, the selling Owner shall pay the Town a nonrefundable listingfeeequalto 2%oftheMaximum Resale Price, regardless of the final purchase price for the Property. The Town may instruct the titlecompany to pay said fees to the Town out of the funds held for the selling Owner at the closing. 6. Lottery. a. Eligibility. To be eligible to enter the lottery to purchase a Property, the applicant must: be a Qualified Buyer; be prequalified with a mortgage lender; and file a complete application with the Town on forms provided by the Town. b. Application. In addition to the application form, each applicant shall submit the following information: i. The last 4 years of federal income tax returns, together with an executed Internal Revenue Service Form 8821 or equivalent; ii. Verification of current employment (i.e., paystubs with employer name, address and contact information); iii. Proof of current residency; iv. Valid Colorado driver's license or identification card; v. Prequalification letter from the lender; vi. A description of any co-ownership interests (joint tenancy, tenancy in common); and vii. A signed authorization allowing the Town to discuss employment details with the applicant's employer. c. Drawing. On the date and at the time selected by the Town, the Town shall conduct a random drawing from the pool of eligible applicants. The Town will notify the selected Qualified Buyer as soon as practicable after the lottery. Within 5 days of 12 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 42 notification from the Town, the selected Qualified Buyershall make a written, binding offer to the selling Owner, using Colorado standard real estate forms. d. Purchase and Sale Contract. If the selected Qualified Buyer and the selling Owner are successful in their negotiations, they will enter into a purchase and sale contract, using Colorado standard real estate forms. If the negotiations fail, the Town will hold another drawing, and notify the next selected Qualified Buyer. This process will continue until the Property is under contract for sale. e. Records. Every application and any accompanying documentation shall become the property of the Town and will not be returned to any applicant. All applicants should be aware that the Town is subject to the Colorado Open Records Act, C.R.S. § 24-72-200.1, et seq. ("CORA"), and as such, the Town may be required to release portions of an application that are not considered confidential under applicable law. The applicant shall have no recourse against the Town for release of any information in response to a CORA request or a court order. f. A dditional Information. Nothing herein shall prevent the Town from requesting and requiring the submission of reasonable additional information to assist the Town in determining eligibility. 7. Town Purchase. a. Eligibility. As provided in the Deed Restriction, the Town will always be a Qualified Buyer. b. Process. Upon receipt of a listing request for a Property, the Town may, in its sole discretion, elect to purchase the Property, in lieu of following the lottery process set forth in Section 5 hereof. c. Sale. If the Town purchases a Property, the Town may thereafter sell the Property to any Qualified Buyer. The Town may determine, in its sole discretion, whether to follow the lottery process in Section 5, or whether to sell the Property to a Qualified Buyerselected by the Town outside of the lottery process. 13 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYEE-A061323.DOCX 43 DEED RESTRICTION AGREEMENT FOR THE OCCUPANCY AND TRANSFEROFTIMBER RIDGE NEIGHBORHOOD RESIDENTIAL DWELLING UNITS (EMPLOYER UNITS) THIS DEED RESTRICTION AGREEMENT (the "Agreement") is entered into this _______ day of _______________, 20__ (the "Effective Date") by and between the Town of Vail, Colorado, a Colorado home rule municipality with an address of 75 South Frontage Road, Vail, CO 81657 (the "Town"), and Triumph Timber Ridge LLC, a ____________ with an address of ___________________ ("Triumph") (each a "Party" and collectively the "Parties"). WHEREAS, Triumph owns the real property described as Unit ___, Timber Ridge Neighborhood, Town of Vail, Colorado (the "Property"), and together with the Town, has developed the Property as part of the Timber Ridge Neighborhood employee housing project; WHEREAS, Triumph is selling the Property to a third party; and WHEREAS, prior to such sale, the Parties wish to permanently restrict the occupancy, use and resale of the Property. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: 1. Property. The Property is hereby burdened with the covenants and restrictions specified in this Agreement, in perpetuity. 2. Definitions. For purposes of this Agreement, the following terms shall have the following meanings: a. Guidelines means the current version of the Timber Ridge Neighborhood Employee Housing Guidelines(Employer Units)adopted by the Town. The version adopted as of the Effective Date is attached hereto as Exhibit 1 and incorporated herein by this reference. b. Non-Qualified Owner means any person who acquires an ownership interest in the Property who is not a Qualified Owner. c. Owner means any person who acquires an ownership interest in the Property. d. Principal Place of Residence means the home or place in which one's habitation is fixed and to which one has a present intention of returning after a departure or absence therefrom. In determining what is a Principal Place of Residence, the Town shall consider the criteria set forth in C.R.S. § 31-10-201(3), as amended. e. Qualified Buyer means the Town or a person who, upon purchase of the Property, will be a Qualified Owner. 1 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYER-A061323.DOCX 44 f.Qualified Owner means an Owner who employs at least one individual who: works an average of 30 hours or more per week at a business in Eagle County, Colorado that holds a valid and current business license, or pays sales taxes, or is otherwise generally recognized as a legitimate business; and such individual earns at least 75% of their income from such business. g. Qualified Tenant means an individual who: works an average of 30 hours or more per week at a business in Eagle County, Colorado that holds a valid and current business license, or pays sales taxes, or is otherwise generally recognized as a legitimate business; and earns at least 75% of their income from such business. For example, if an individual worked 60 hours per week for one half of the year at such a business in Eagle County, Colorado, and worked elsewhere for the other half of the year, such person would be a Qualified Tenant. h. Transfer means any sale, conveyance, assignment or transfer, voluntary or involuntary, of any interest in the Property, including without limitation a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest and an interest evidenced by any contract by which possession of the Property is transferred and an Owner retains title; provided that the lease of a room or rooms within the Property to a Qualified Tenant in accordance with this Agreement shall not constitute a Transfer. 3. Occupancy Restrictions. a. The Property shall be continuously occupied by at least one Qualified Tenantas their principal place of residence. A Qualified Tenant shall be deemed to have changed their principal place of residence by becoming a resident elsewhere or accepting permanent employment outside of Eagle County, Colorado. b. No business activity shall occur on or within the Property, other than as permitted within the zone district applicable to the Property. st c. No later than February 1 of each year, Owner shall submit one copy ofa sworn affidavit,on a form provided by the Town, verifying thatthe Property is occupied in accordance with this Agreement and the Guidelines. d. The Property shall be subject to a written lease that expressly incorporates this Deed Restriction. 4. Transfer. a. The Owner shall first notify the Town that the Owner wishes to Transfer the Property. The Town shall have the first option to purchase the Property, exercisable within a period of 15 days after receipt of notice, and if the Town exercises its right and option, the Town shall purchase the Property from the Owner for a price equal to the Maximum Resale Price, or the appraised market value, whichever is less. b. Should the Town determine not to purchase the Property, the Owner shall list the Property for sale in accordance with the Guidelines, and shall thereafter select a Qualified Buyer. 2 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYER-A061323.DOCX 45 c. The Property shall be transferred only to the Town or a Qualified Buyer. d.At closing, the Qualified Buyershallexecute, in aformsatisfactoryto the Town and for recording with the Eagle County Clerk and Recorder, a document acknowledging this Deed Restriction and expressly agreeing to be bound by it. 5. Effect of Transfer to a Non-Qualified Owner. a. If for any reason the Property is transferred to a Non-Qualified Owner, the Non-Qualified Owner shall immediately contact the Town to Transfer the Property pursuant to Section 4 hereof. b. The Non-Qualified Owner shall execute any and all documents necessary for the Transfer. c. A Non-Qualified Owner shall not: occupy the Property; rent any part of the Property; engage in any business activity within the Property; or Transfer the Property except in accordance with this Agreement. 6. Transfer by Devise or Inheritance. a. If a Transfer occurs by devise or inheritance, the personal representative of the estate or the person inheriting the Property (the "Inheriting Owner") shall provide written notice to the Town within 30 days of the devise or inheritance. b. If the Inheriting Owner is a Qualified Owner, they shall provide the Town with documentation proving their status as such, and the Town may determine if the Inheriting Owner is in fact a Qualified Owner. If the Inheriting Owner fails to provide the required documentation, they shall be deemed a Non-Qualified Owner. c. If the Inheriting Owner is a Qualified Owner, they shall succeed in the Qualified Owner's interest and obligations under this Agreement. If the Inheriting Owner is a Non-Qualified Owner, the Inheriting Owner shall Transfer the Property pursuant to Section 4 hereof. 7. Consensual Lien; Right to Redeem. For the purpose of securing performance under this Agreement and creating in favor of the Town a right to redeem in accordance with Part 3 of Article 38 of Title 38, C.R.S., as amended, Triumphhereby grants to Town a consensual lien on the Property. Such lien shall not have a lien amount. 8. Breach. a. It shall be a breach of this Agreement for the Owner or a Qualified Tenant to violate any provision of this Agreement, or to default in payment or other obligations due to be performed under a promissory note secured by a first deed of trust encumbering the Property. b. If the Town has reasonable cause to believe that an Owner or any Qualified Tenant is violating this Agreement, the Town may inspect the Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner with 24 3 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYER-A061323.DOCX 46 hours written notice. This Agreement shall constitute permission to enter the Property during such times upon such notice. c. If the Town discovers a violation of this Agreement, the Town shall notify the Owner, Qualified Buyer or Qualified Tenant of the violation and allow 15 days to cure. 9. Remedies. a. Any Transfer in violation of this Agreement shall be wholly null and void and shall confer no title whatsoever upon the purported buyer. Each and every Transfer, for all purposes, shall be deemed to include and incorporate by this reference the covenants contained in this Agreement, even if the Transfer documents fail to reference this Agreement. b. The Town may pursue all available remedies for violations of this Agreement, including without limitation specific performance or a mandatory injunction requiring a Transfer of the Property, with the costs of such Transfer to be paid out of the proceeds of the sale. c. Upon request by the Town, each Owner authorizes the holder of any mortgage or deed of trust against the Property to disclose to the Town if any payments due are delinquent and the duration and amount of such delinquency. d. In addition to the specific remedies set forth herein, the Town shall have all other remedies available at law or equity, and the exercise of one remedy shall not preclude the exercise of any other remedy. 10. Foreclosure. a. The Owner shall notify the Town, in writing, of any notification received from a lender of past due payments or defaults in payments or other obligations within 5 days of receipt of such notification. b. The Owner shall immediately notify the Town, in writing, of any notice of foreclosure under the first deed of trust or any other subordinate security interest in the Property, or when any payment on any indebtedness encumbering the Property is required to avoid foreclosure of the first deed of trust or other subordinate security interest in the Property. c. Within 60 days after receipt of any notice described herein, the Town may (but shall not be obligated to) proceed to make any payment required to avoid foreclosure. Upon making any such payment, the Town shall place a lien on the Property in the amount paid to cure the default and avoid foreclosure, including all fees and costs resulting from such foreclosure. d. Notwithstanding any other provision of this Agreement, in the event of a foreclosure, acceptance of a deed-in-lieu of foreclosure, or assignment, this Agreement shall remain in full force and effect. 4 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYER-A061323.DOCX 47 e. The Town shall have 30 days after issuance of the public trustee's deed or the acceptance of a deed in lieu of foreclosure by the holder in which to purchase by tendering to the holder, in cash or certified funds, an amount equal to the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the holder related to the foreclosure. 11. Miscellaneous. a. Modification. This Agreement may only be modified by subsequent written agreement of the Parties;provided that, if the Town obtains title to the Property, the Town may modify or terminate this Agreement at any time. b. Integration. This Agreement and any attached exhibits constitute the entire agreement between the Parties, superseding all prior oral or written communications. c. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, successors and assigns. d. Severability. If any provision of this Agreement is determined to be void by a court of competent jurisdiction, such determination shall not affect any other provision hereof, and all of the other provisions shall remain in full force and effect. e. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado, and any legal action concerning the provisions hereof shall be brought in Eagle County, Colorado. f. Third Parties. There are no intended third-party beneficiaries to this Agreement. g. No Joint Venture. Notwithstanding any provision hereof, the Town shall never be a joint venture in any private entity or activity which participates in this Agreement, and the Town shall never be liable or responsible for any debt or obligation of any participant in this Agreement. h. Notice. Any notice under this Agreement shall be in writing, and shall be deemed sufficient when directly presented or sent pre-paid, first class United States Mail to the Party at the address set forth on the first page of this Agreement, or, if the Property has been transferred to a subsequent Owner, to the Owner's address on file with the Eagle County Assessor. i. Recording. This Agreement shall be recorded with the Eagle County Clerk and Recorder. The benefits and obligations of Triumph under this Agreement shall run with the land, and shall be binding on any subsequent holder of an interest in the Property. j. Savings Clause. If any of the terms, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Agreement are held to be unlawful or void for violation of: the rule against perpetuities or some analogous statutory provision; the rule restricting restraints on alienation; or any other statutory or common 5 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYER-A061323.DOCX 48 law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the current duly elected and seated members of the Vail Town Council, their now living descendants, if any, and the survivor of them, plus 21 years. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. TOWN OF VAIL, COLORADO ________________________________ Kim Langmaid, Mayor ATTEST: _____________________________ Stephanie Bibbens, Town Clerk TRIUMPH By:________________________________ STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of ___________________, 20_, by ________________ as _____________ of Triumph Timber Ridge LLC. Witness my hand and official seal. ______________________________ Notary Public (S E A L) My commission expires: 6 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYER-A061323.DOCX 49 EXHIBIT 1 TIMBER RIDGE NEIGHBORHOODEMPLOYEE HOUSINGGUIDELINES (EMPLOYER UNITS) 1. General. These Guidelines are intended to supplement the Deed Restriction Agreement for the Occupancy and Transfer of the Timber Ridge Neighborhood Residential Dwelling Units (Employer Units) (the "Deed Restriction"). These Guidelines may be updated by Town staff as necessary, and the current version of these Guidelines shall always control over any prior version. In the event of any conflict between these Guidelines and the Deed Restriction, the Deed Restriction shall control. 2. Occupancy. a. Leasing. Each lease shall include a clear reference to the Deed Restriction and a brief summary of the Deed Restriction, and shall by reference incorporate the terms and conditions of this Deed Restriction. Copies of all leases shall be filed with the Town during the annual verification process. b. Disability. Should a Qualified Tenant become an individual with a disability and, because of such disability, be unable to meet the requirements of the Deed Restriction to remain a Qualified Tenant, the Qualified Tenant shall notify the Town, in writing, of the nature of the disability. If the disability is permanent, the Qualified Tenant shall remain a Qualified Tenant despite the disability. If the disability is temporary and the Qualified Tenantbecomes able to return to work, to remain a Qualified Tenant, the Qualified Tenantmust return to work when the disability ceases. Notwithstanding anything to the contrary in these Guidelines or the Deed Restriction, the Town will make all reasonable accommodations necessary under the Americans with Disabilities Act. 3. Annual Verification. st a. Affidavit. As provided in the Deed Restriction, no later than February 1of each year, Owner shall submita sworn affidavit, on aform provided by the Town,verifying that the Property is occupied in accordance with the Deed Restriction and these Guidelines. b. Additional Documentation. The affidavit shall be accompanied by the following supporting documentation: i. Verification of each Qualified Tenant's current employment and employment during the prior year (paystubs with employer's name, address and contact information); ii. Signed authorization allowing the Town discuss employment details with each Qualified Tenant's employer; iii. Each Qualified Tenant'sfederal income tax return from the prior year, together with an executed Internal Revenue Service Form 8821 or equivalent; 7 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYER-A061323.DOCX 4: iv. Copies of all leases of the Property during the prior year. 4.Listing. a. Town's Role. Town staff are not licensed brokers, but instead, act as representatives of the Town and its interests. All sellers and purchasers are advised to consult legal counsel regarding examination of title and all contracts, agreements and documents, at their own expense. b. Advertising. Upon listing, the Town will advertise the sale of the Property in 2consecutive Friday editions of the Vail Daily, or in any other manner deemed appropriate by the Town or in any other manner deemed appropriate by the Town. c. Open Houses. The Town will coordinate with the selling Owner to establish two open house dates when the Property may be viewed by interested parties. e.Fee. Prior to or at closing, the selling Owner shall paytheTowna nonrefundable listing fee equal to 2% of the final purchase price for the Property. The Town may instruct the title company to pay said fees to the Townout ofthe funds held for the selling Owner atthe closing. 8 6/13/2023 Q:\\USERS\\VAIL\\TR NEIGHBORHOOD\\AGR\\DEED RESTRICTION-EMPLOYER-A061323.DOCX 51 52 PROPOSITION 123 RURAL RESORT PETITION WHAT IS A RURAL RESORT PETITION? Organizations applying for funding through the , administered by the Colorado Housing and Finance Authority through the HOW TO FILE A RURAL RESORT PETITION 53 RURAL RESORT PETITION REQUIREMENTS ELIGIBLE ENTITIES Local Housing Authorities GETTING STARTED? Housing Needs Assessment: An assessment of the average housing needs within the community, completed within the last three years, using state demographer data or other A narrative description of why alternative funding sources are not being Project Information: Includes the project name, address, municipality/county name, Approval and Impact: obligation to prioritize high-density housing, mixed-income housing, and environmentally sustainable projects Approved projects must still meet the demonstrated housing needs ofthe rural resort community. Program Land Banking Program Equity Program Petition Online at co.accessgov.com 54 Applying to the Rural Resort Petition requires variety of content to be provided by the municipalities. This content is divided into three sections on the application: 1. Introduction 2. Project Information 3. Narratives Name of Municipality/County Financing Being Requested Requested Structure of Financing Requested Income Limit as Percent of AMI Section 2: Required Project Information Tenure Type Structure Type a. b.Total Units at Income Limit 55 Section 3: Required Narrative Information a. assessment as appropriate. b.What housing needs are experienced by households at various income levels within your community? c.How will changing the income limit impact the housing needs descrived above? d.How will changing the income limit impact the ability of lower income households to rent or buy units within the project? Resort community: Rural Resort Petition Information: co.accessgov.com municipalities and housing authorities 56 57 To:Vail Town Council From:Russell Forrest, Town Manager Date:April 2, 2024 Subject:StrategicPlan _______________________________________________________________________________ 1.PURPOSE AND INTRODUCTION This Strategic Plan’s purpose is to create real and meaningful results to address the importantissuesidentifiedby our residents incommunitysurveys,plans,andcommunity conversations.ThisStrategic Plan, once approved, will provide a framework to align both human and financial resources to achieve critical results in addressing our community’s most important issues. On February 26 and 27, 2024, the Town Council worked together toupdate thetown’s mission, identify priority issues, and outline strategic results included in this plan. The planning session started with a review of feedback received by 5 focus groupsand a summary of public input from communityandguest surveys, feedbackfrom a recent branding study, and Vail’s Stewardship Roadmap. Staff would like to review the mission statement, priority issues, and results identified on February 26 and 27, discuss several questions with Council and then return on April 16 with a complete draft. The following includes a more developed mission statement, description of priority issues, and results. Prior to the 2025 budget process staff will create specific actionsto execute this strategic plan that will have a time frame of 2025-2029. 2.MISSION STATEMENT, ISSUES AND RESULTS The following is a working draft (this is still work in progress) of the Mission, Priority Issues, and Results from the February 26 and 27 planning session for Council Review. Mission: The mission describes our purpose and the fundamental services we provide to the community and the desired impact of thoseservices. The Mission of the Town of Vail is to provide exceptional public services to people who live, work, and play here so they can connect to the community and nature, create memories, find opportunities to thrive, and have the time of their lives. 58 Issues and Results: The following is a draft narrative of the issues and results/goals identified by the Town Council on February 26 and 27. A.Housing and Community: With ever increasing housing costs causing a lack of opportunity for employees working in Vail to make a home in Vail (oreven within 30 to 40 miles ofVail), the sustainability of our economy and community are threatened. This has resulted in a net loss of population for both the Town of Vail and Eagle County as a whole. Although a pioneeringspirit has always been required to call Vail home, without a continuum of new housing and business opportunitiesin Vail the next generation of residents, community leaders, and business owners may not be readily present in the future. Desired Results: A.1 By 2027, the Town of Vail will have acquired 1,000 new (compared to 2017) deed restrictionsbringing the total number of deed restrictions to 1,688. A.2 By 2029,the Town of Vail will have expanded upon the continuum of housing through an increase in the diversity of home types thereby ensuring Vail residents have access to a mix of housing opportunities ranging from homes for seasonal employeesto retirees includingfor-rentapartments and for-salecondominiums, town homes, single access multi-family buildings duplexes, triplexes, and single-familyhomes. A.3. By 2029, the Town of Vail will implement actions specifically intended to protect and preserve the existing housing stock and reducesthe loss of resident-occupied,free market homes. A.3 By 2027, inan effort to maintain and sustain community,reverse thetrend of population loss in Vail and realizea 1-2% increase in the population between 2024 (4,804)and 2029. A goal focused on reducing population loss was recommended by the HousingAuthority. A.4 By2033, double the supply of deed-restricted homes from 1,034to 2,370 for our year-round and seasonal Vail residents through a collaborative and regenerative approachthat includesdownvalley partnerships andregional solutions.(This would effectively replace the current 1,336 resident occupied, free market dwelling unitswhich could be lost to the second home market) A.5: By 2027, Vail will increase commercial opportunities for local businesses that provide goods and services by 10% as measured by commercial square footage.The total commercial square footage in the Town of Vail is approximately 530,000 sq ft. Town of VailPage 2 59 Note: As a point of reference the Town Manager shared the following tableswith the Housing Authority. Town of Vail Dwelling Units Break Down CurrentPlanned Change Planned NumberPerecentageNew Total NumberChange Total number of dwelling units7206100%680 7,886100% Occupied Dwelling Units Resident-Free Market133619%- 1,33617% Resident Occupied Deed Restricted103414%680 1,71422% Deed Restricted- Rental ( Developer Obligations, Vail Mountain School, Solar Vail etc.) 73610% Deed Restricted-Rental Vail InDEED (Includes 6 West, Solar Vail)1762% (Master Deed Restrictions, Buy Downs, Chamonix Vail) 1222% Occupied - Total 237033%680 3,05039% Vacant Dwelling Units 2nd Homes-Not Rented226331% Short Term Rental Licence Total257336% STR-professionally managed108115% STR-Individual149221% Vacant - Total 483667% 4,83661% Vail Population Change Area198019902000202020212022 2010 Vail2261365945315,2854,8084,8094,804 Town of VailPage 3 5: B.Workforce Support: Given the high cost of living in the Vail Valley, retaining employees,and creating a succession of business leaders is threatened. Mainlining a high level of guest service to support Vail’s vision requires creating a succession of business leaders and retaining high performing employees. Desired Results: B.1: By December 2025, working with our partners, Vail’s workforce will have access to leadership training, mentorship, and entrepreneurial skills development, as evidenced by the number of new businesses created. B.2:By 2029, 99% ofourworkforce has access to information about healthcare coverage, mental health resources, and other resources. B.3: By 2029, working with ourpartners, expand the current employee mental health assistance programs (EAP) for Vail workforce and provide timely access to care. B.4: By 2029, parents/caregivers working in Vail needing childcare have access to affordable childcare (7 to 10% of income) located where they need it, measured by a reduction in waitlist numbers at Vail childcare facilities. C.Authentic Vail Experience: Vail’s vision of being the premier mountain resort community despite a trend towardshomogeneity in the ski industry will be achieved by creating programming and eventsauthentic to Vail’s pioneering and entrepreneurial spirit. We are a community that celebrates the sport of skiing and mountain town living. Desired Results: C.1: By 2027, Vail will create and/orenhance 1-2 showstopper, unique events in the winter and summer seasonswhich are consistent with the authentic Vail vibe. Examples: GoPro Mountain Games, X Games, Burton US Open, Street Beat, Dew Tour, Loveland Derby, Ski Races, Bravo!. C.2: By 2029, Vail will create a seamless, vibrant, inclusive experience as a person transitionfrom the mountainintotownand town to mountain.As our guests andresidents’transitionwhether on skis, bikesor on foot,between the Town and Vail Mountain. They will beenticedand welcomedby programming that creates an energeticand fun vibe ready to greet them at the basearea. C.3: By June 2025, modify town codes to support vibrancy(special events, live entertainment, night life). C.4: By 2027, Individuals under 40 will state “Vail is a kickass place”as measured by the net promotor score. Town of VailPage 4 61 C.5: By 2025, Vail will provide and support community members and organizations to incentivize and create social events for the Vail community and its workforce. C.6: By 2025, Vail will provide excellent customer service through clear definitions, measurements, and reporting.This was under governance,and it could fit well here. D.Transportation: The increasing number of commuters traveling to and from Vail for business and pleasure impacts public safety, generates an expensive need for parking, reduces the guest experience by causing parking on the Frontage Roads, and contributes to carbon emissions. 7, people who live, work, and recreate in Vail use D.1 Transportation –By 202 the RTA and Vail Bus System as their preferred method of transportation as evidenced by reducing the percentage of vehicles parking in the Vail parking structures from 32% to 20% by those who begin their day in Vail; and from 40% to 30% by those who begin their day in Eagle County but outside of Vail. A total reduction from 72% to 50%. (The Parking Taskforce may also provide feedback on this goal). E.Governance or Environmental Sustainability?In the retreat apriorityissue was Governance and included results related to the environment and excellent customer service. If Council is comfortable with C.6 above would you like to make a stronger statement about Environmental Sustainability as suggested below?If not we can keep a catch all category as governance. Environmental Sustainability (or Governance): The town of Vail with 5,000 residents and 2 million guests per year is inherently consumptive on a per capita basis. Our sensitive alpine environment supports our economy, and the Town must continue to be a responsible steward of our natural resources and shouldcontinue to be aleader in environmental sustainability for mountain resort communities across the world. E.1: By2029,workingwith our partners,advance the next stage of design to restore habitat connectivity at Dowd Junction. E.2: By 2027, Vail and its partners havea cohesive wildlife/environmental management plan that identifies Vail’s role in sustaining ecosystem biodiversity in its various habitats. E.3: (Stewardship Roadmap Action 4)–Reduce 2014 baseline carbon emissions by 25% by 2025, 50% by 2030, and 80%by 2050 while advancing community resiliency, improving Gore Creek Watershed, and maintaining certification to a globally recognized sustainability standard. Town of VailPage 5 62 E.4?? Would Council consider the following regardingGore Creek: By 2030Gore Creek is nolongera 303(d)listed impaired waterwaywhich would reducenear term risk of losingthe gold medal fishery status. 3.QUESTIONS FOR COUNCIL 1.Please review the proposed strategic issues and results,and confirm the text reflects the Council’sdesired direction. 2.Your feedback to thequestions and comments in redwould be appreciated. 3.The only significant change proposed from the Februaryplanning session is whether the governance section could be modifiedin the following way: Move the result on excellent customer service to Authentic Vail ExperienceC.6: By 2025, Vail will provide excellent customer service through clear definitions, measurements, and reporting. This was under governance,and it could fit well here. If Council would prefer,then we could have a priority issue focused on environmental sustainabilityversus a catch all category that we called “Governance”. In addition, a council member asked about adding a goal on Gore Creek. With this feedback, staff can rapidly complete the strategic plan and bring it back to Council as soon asthe April 16 meeting. Then staff will develop a specific action plan to implement this strategic plan prior to the 2025 budget process and bring that back to the Town Council for your approval. Town of VailPage 6 63