HomeMy WebLinkAbout2024-12-17 Agenda and Supporting Documentation Town Council Afternoon Meeting1.Call to Order (1:00pm)
2.Presentation/Discussion (1:00pm)
2.1 West Middle Creek Update (1:00pm)70 min.
Staff is requesting Council's feedback on moving forward with
this housing development given the current financial
projections and identify a maximum amount of COPs debt the
Council is willing to encumber for this project.
Presenter(s): Jason Diez, Housing Director
Background: An update on the West Middle Creek Village
Apartments, including current construction budget, pro-forma
estimates a proposed financing structure and timeline.
2.2 Cascade Area A Discussion (2:10pm)30 min.
Listen to presentation and provide feedback.
Presenter(s): Russell Forest, Town Manager and Greg Roy,
Planning Manager
Background: The purpose of this item is to continue the
discussion on goals and public benefits for the future vision of
Cascade Village.
2.3 STR Draft Ordinance Discussion (2:40pm)40 min.
Staff requests feedback on the draft ordinance prior to the first
reading at this evening's meeting.
Presenter(s): Carlie Smith, Finance Director
Background:
This afternoon's presentation summarizes a draft ordinance
amending the Short Term Rental code with the addition of an
annual fee proposal per sleeping area for Short Term Rentals.
VAIL TOWN COUNCIL MEETING
Afternoon Session Agenda
Town Council Chambers and virtually by Zoom.
Zoom meeting link: https://vail.zoom.us/webinar/register/WN_zyMDNGDSR8WXl4KguEbJAg
1:00 PM, December 17, 2024
Notes:
Times of items are approximate, subject to change, and cannot be relied upon to determine what time
Council will consider an item.
241217 financing.pptx
2024-12-17 WMC Final
Cascade Discussion 121724
Cascade Village Presentation 12172024.pptx
Cascade A Redevelopment Public Comment
121724 STR Memo
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3.DRB/PEC (3:20pm)
3.1 DRB/PEC Update (5 min.)
4.Information Update (3:25pm)
4.1 October 17, 2024 VLMDAC Meeting Minutes
4.2 November 4, 2024 AIPP Meeting Minutes
5.Matters from Mayor, Council, Town Manager and Committee Reports (3:25pm)
5.1 Matters from Mayor, Council, and Committees (15 min.)
5.2 Town Manager Report (5 min.)
Annual Community Meeting March 25, 2025
5.3 Council Matters and Status Report
6.Executive Session (3:45pm)
(30 min.) Executive Session pursuant to:
1. C.R.S. §24-6-402(4)(a) - to consider the purchase, acquisition, lease, transfer or sale
of any real, personal or other property interest, C.R.S. §24-6-402(4)(b) - to hold a
conference with the Town Attorney, to receive legal advice on specific legal questions
and C.R.S. §24-6-402(4)(e) to determine positions relative to matters that may be
subject to negotiations, develop a strategy for negotiations and instruct negotiators and
on the topics of Town of Timber Ridge Village Employee Housing Units Deed
Restriction Credit Program.
7.Recess 4:15pm (estimate)
Ord. No. 24, Series 2024
12-17-24 STR Update
Short-Term Rental Fee Public Comment
DRB Results 12-4-24
PEC Results 12-9-24
VLMDAC meeting minutes October 17, 2024
November 4, 2024 Minutes
2024-12-17 Matters
Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website
www.vail.gov. All Town Council meetings will be streamed live by High Five Access Media and available
for public viewing as the meeting is happening. The meeting videos are also posted to High Five Access
Media website the week following meeting day, www.highfivemedia.org.
Please call 970-479-2460 for additional information. Sign language interpretation is available upon
request with 48 hour notification dial 711.
2
AGENDA ITEM NO. 2.1
Item Cover Page
DATE:December 17, 2024
TIME:70 min.
SUBMITTED BY:Missy Johnson, Housing
ITEM TYPE:Presentation/Discussion
AGENDA SECTION:Presentation/Discussion (1:00pm)
SUBJECT:West Middle Creek Update (1:00pm)
SUGGESTED ACTION:Staff is requesting Council's feedback on moving forward with this
housing development given the current financial projections and
identify a maximum amount of COPs debt the Council is willing to
encumber for this project.
PRESENTER(S):Jason Diez, Housing Director
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
241217 financing.pptx
2024-12-17 WMC Final
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Project Team:
Developer: Eric Komppa, Corum
TOV Staff Partners
Jason Dietz, Housing Director Mattie Prodanovic, Hilltop Securities
Kathleen Halloran, Deputy Town Manager Jason Simmons, Hilltop Securities
Carlie Smith, Finance Director Robyn Moore, Piper Sandler
Andrew Dodd, Piper Sandler
Kim Crawford, Butler Snow
Dalton Kelley, Butler Snow
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Last presentation to Council: June 4 Project Budget $164M
Three 6-story buildings; each with apartments on 4 levels over a 2-story parking
structure
268 rental apartments; Studios, 1-bed, 2-bed and double occupancy master
leased 2-bedroom units.
Rental rates ranged from 80% - 140% AMI ($1,877/mo - $4,221/mo)
o 122 units less than 120% AMI
o 146 units at 120% AMI or greater
Assumed a Master lease for 36 units
New Transit stop for free in-town bus service
5
WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
The Project
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Financing – The Process
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Since June, the project budget has been reduced to $161M,
however challenges in finding a feasible financing model
continued.
•The Town and Vail Local Housing Authority conducted an RFP
for underwriters in October and November based on the stated
goals.
•The purpose of the RFP was to identify potential financing
solutions for the West Middle Creek Project and to identify the
qualified underwriting firm or firms to assist in the financing.
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Financing Goals stated in the RFP:
•Minimal impact to the town’s credit rating
•Maintains available debt capacity of the town for other
borrowing needs over the next several years
•$60M-$70M maximum for Town debt
•Provide an adequate amount of annual cash flows from net
operating income to fund capital maintenance needs
•Does not require additional cash contributions from the
town (beyond the $10M committed)
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
•The RFP was sent to six firms who have a local presence in
Colorado and/or workforce housing financing experience. Five
responses were received.
•The Town conducted interviews with three of the responding
firms and chose Piper Sandler to serve as underwriter for the
proposed financings.
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
The purpose of today’s discussion is to update Town Council
on the financial outlook of this project and to gauge Town
Council’s support for moving forward with this housing
development.
To date, the town has spent a total of $4.9M including:
•$2.6M to purchase adjacent CDOT property
•$2.3M on design and entitlement process
The financing required to construct this $161M project (268
units) is unique for Town of Vail’s size organization and
budget.
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Financial Modeling
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Base Case Financing Assumptions
•Total project cost of $161.5M
•Master Lease for 36 of the 268 units
•Remaining 232 units assume ~115% AMI
•12 month lease up period after construction
completion;
•50 units in first month and 20 units rented per
month thereafter
•5% Vacancy Rate
•2.50% Net Operating Income growth rate
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Recommended Financing Model:
No Master Lease
70% of units rented at 100%-110% AMI; 30% at “Market” (140% AMI)
Essential Function Bonds
•Require an essential government purpose
•Tax exempt bond
•Funded by revenues of the project
•Collateral is the land and project
Certificates of Participation
•Tax exempt lease agreement
•Requires collateral of other town property
•Subject to annual appropriation from all available revenues
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Essential Function Bonds ( Project)COPs (Town)
1.3x debt service coverage 1.0x coverage
Debt service reserve fund No reserve fund
Capitalized interest for 3 yrs Capitalized interest for 3 yrs
Non-rated transaction Assumes Town’s Moody’s
rating of Aa1
Mortgage/Deed of Trust on the
property
Will need to select a town
property for collateral
Financing Assumptions
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Included below is a summary financing overview for the recommended model,
based on current market rates as of Dec. 10, 2024;
•The Town would issue a $45M COP;
•Total interest cost across all financing totals $313M
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
The sizing of the senior revenue bonds is highly sensitive to interest rate.
At higher rates, a larger COP offering is required to cover a funding gap.
At higher rates, the financing becomes more sensitive to reduced NOI
growth, and the Town “subsidizes” the financing over a longer period of
time by paying the COP debt service in excess of 1.0x coverage on the
Project.
Piper Sandler has conducted sensitivity analysis for interest rates and NOI:
•Interest Rates:
•-75 bps, -50 bps, -25 bps
•Current rates
•+25 bps, +50 bps, +75 bps
•Net Operating Income (NOI) Growth: 2.00%, 2.50%, 3.00%
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
At current rates, the Town would issue a $45M COP and subsidize debt service
payments in 2029 by $106K
Town of Vail | 12/17/2024
Out-Of-Pocket COP
Repayment Sensitivity ($)
Interest Rate Movement
-75 bps -50 bps -25 bps Current +25 bps +50 bps +75 bps
NOI Growth
2.00%$0 $0 $0 $256,192 $1,686,144 $4,396,726 $8,457,753
2.50%$0 $0 $0 $106,023 $1,066,171 $3,035,768 $6,114,296
3.00%$0 $0 $0 $0 $668,566 $2,161,817 $4,550,623
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Town of Vail | 12/17/2024
-
5.0
10.0
15.0
20.0
25.0
12/31/2025
12/31/2026
12/31/2027
12/31/2028
12/31/2029
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12/31/2064
12/31/2065
Millions
Bond Net DS COP Net DS NOI (2.5% Growth)
Combined debt service exceeds projected NOI in 2029
(Estimated overage of $106k)
Preliminary Debt Service Schedule – Current Rates
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Included below is a summary financing overview adding a cushion of 50 basis
points (0.5%) in interest rate. The result:
•The larger funding gap from less EFBs must be covered by a larger COP (+$14M)
•The town would also have to cover approx. $3M in debt service in 2029, up from
$106K
•Total interest cost across all financing totals $348M ($35M increase)
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
With interest rates increasing by 50 basis points (0.5%), the Town would
need to issue a $59.2M COP and subsidize debt service payments in 2029
by $3.0M
Town of Vail | 12/17/2024
Out-Of-Pocket COP
Repayment Sensitivity ($)
Interest Rate Movement
-75 bps -50 bps -25 bps Current +25 bps +50 bps +75 bps
NOI Growth
2.00%$0 $0 $0 $256,192 $1,686,144 $4,396,726 $8,457,753
2.50%$0 $0 $0 $106,023 $1,066,171 $3,035,768 $6,114,296
3.00%$0 $0 $0 $0 $668,566 $2,161,817 $4,550,623
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
The next slide will demonstrate sensitivity to the below rental
rate structures that also influences the funding gap (COP sizing)
and the amount of COP debt service that the Town is projected
to repay out-of-pocket:
•Market Rate Units:
•1) base case (incl. master lease)
•2) all 100% AMI,
•3) 30% market rate / 70% @ 100% AMI
•4) 30% market rate / 35% @ 100% AMI / 35% @
110% AMI
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Note: 2018 HNA showed a need of 5900 units
by 2025,
Progress was made but it didn’t keep up /
catch up with demand.Under construction and entitled units
have not been netted out yet.
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Rental Rate assumptions:
Lionsridge
100% AMI 110% AMI 140% AMI *70% workforce
restriction
Studio $ 2,346 $ 2,580 $ 3,284 $2,352 $2,300
1Bd/1Ba $ 2,513 $ 2,765 $ 3,518 $1,634 $2,656 $2,510 $2,300
2Bd/2Ba $ 3,015 $ 3,317 $ 4,221 $2,262 $4,124 $3,200 $3,100
Piedmont The Pike 6 West
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
•Changes in rental rates have a significant impact on the sizing of the COP series.
•Incorporating market rate units generates greater NOI for the project and lessens
the size of the Town’s COP offering.
•The table below includes a range of sensitivities. A highly income restricted
project (like the 100% AMI scenario) requires a significantly larger COP offering in
order to plug the funding gap.
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Financing & Ownership Structure
Town of Vail | 12/17/2024
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Financing and Ownership Structure
•TOV to form a non-profit corporation to issue the EFB’s
•Town Council approves the formation, articles of
incorporation and bylaws
•Deed of Trust to the corporation for land
•TOV issues COP’s
•Town Council authorizes COP issuance and lease documents
•Selection of property for collateral
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Timeline
Action/Process Date Responsible party
Final GMP Feb 28, 2025 Corum
Building permit Feb 28, 2025 Corum
Town Council Authorizes creation of
non-profit; bylaws and articles of
incorporation
March 6, 2025 Butler Snow, Staff
Town Council Authorizes Debt
(COP)
March 6, 2025 Butler Snow, Staff
Bond and COP Closings April 30, 2025 Piper Sandler, Hilltop,
Staff
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Summary:
•Cost of this project cannot be financed under interest rate environment
without the town issuing debt and subsidizing.
•The recommended model is attainable, however highly sensitive to
interest rates and net operating income.
•The cost of Master leasing outweighs the benefits (the project can still
master lease up to 10% of units): Recommend no master lease
•Allowing 30% of units at “nearly market” rents significantly impact
feasibility of financing.
•Demand of units will be informed by most recent regional housing
needs assessment.
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WEST MIDDLE CREEK APARTMENTS
Financing Update | December 17, 2024
Town of Vail | 12/17/2024
Action requested from Town Council:
Does Council have feedback on level of indebtedness the town should
be willing to take on with COPs to make the project feasible?
Does Council agree with using up to 140% of AMI for 30% of
unrestricted units to help keep the remainder of the project at lower
rents (100% - 110% AMI) to have a financially feasible project?
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TO: Vail Town Council
FROM: Finance Department
Housing Department
DATE: December 17, 2024
SUBJECT: West Middle Creek Village Apartments Update
I. SUMMARY
The purpose of this memo is to provide Council with an update on the West Middle Creek Village
Apartments, including current construction budget, pro-forma estimates a proposed financing
structure and timeline.
II. BACKGROUND
Exactly one year ago the town approved a Pre-Development Agreement with Corum Real Estate
Group for the entitlement process to develop the West Middle Creek Village Apartments. On
June 4, 2024, staff presented a project update to Town Council as the project was nearing the
finalization of entitlements. At the June meeting the project consisted of the following:
Three 6-story buildings; each with apartments on 4 levels over a 2-story parking structure
268 rental apartments, ranging from studios, 1-bed, 2-bed and double occupancy master
leased 2-bedroom units.
Rental rates ranged from 80% - 140% AMI ($1877/mo - $4221/mo)
o 122 units less than 120% AMI
o 146 units at 120% AMI or greater
Assumed a Master lease for 36 units
New Transit stop for free in-town bus service
The initial project budget was estimated at $164M, and the initial finance structure presented to
the developer contemplated an interest-only, 10 year term, balloon payment maturity with a moral
obligation from the Town, which upon an in-depth analysis was determined to be not feasible for
financing. Although the project team worked diligently to bring that cost estimate down to
approximately $161.5M, the size of financing and annual debt payments that would be covered
by annual income of the project is not sufficient given current interest rates. It requires Town of
Vail resources to make up for the gap in funding. In subsequent discussions, Town Council
committed to a cash contribution of $10M to the project but will need to consider issuing debt as
well. Financing of this magnitude for a municipality of Town of Vail’s size and budget is
very unique to the financial markets.
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Town of Vail Page 2
Due to challenges in finding a feasible financing structure, the town’s financial advisor (Hilltop
Securities) issued an RFP for an underwriter. Five firms responded, with three making the final
interview process: Stifel, Piper Sandler and Mesirow. Piper Sandler was selected, based on the
recommended financing solution that was presented and the strength of their team. The Piper
team has significant experience in housing deals and had the most thought-out and detailed RFP
response.
Hilltop Securities serves as the town’s financial advisor and is a fiduciary for the town.
Another fiduciary advising on this project is Butler Snow, the town’s bond counsel. These
advisors, along with representatives from the town, Vail Local Housing Authority (VLHA), and
Corum have been diligently working with Piper Sandler to find a way to fund West Middle Creek.
III. DISCUSSION
The project is now fully entitled and expected to receive a building permit before the end of
February. The town has invested a total of $4.9M on the project to-date, including $2.6M to
purchase adjacent CDOT property. An Initial Gross Maximum Price (IGMP) will be received this
month, but the final GMP is not anticipated until February 2025. If Town Council is comfortable
with the current financing model within a specified range of debt to be taken on by the Town,
staff will proceed with preparing for a late spring/early summer construction start.
The project team has spent many months working through a number of scenarios for financing
this project. In this discussion, staff has provided a summary of the most recent assumptions
and financial projections to evaluate viability, risk to the town, impacts to the town’s credit rating
and future bonding capacity, and financial sustainability into the future. The purpose of this
discussion is to gauge Town Council’s support for moving forward with this housing
development given the current financial projections and identify a maximum amount of
COPs debt the Council is willing to encumber for this project.
Challenges: Size of project and financial commitment compared to Town’s financial outlook;
Interest rate risk; Risk of housing market saturation with other near-term projects coming online
within the region.
Advantages: Town-owned project, zero-cost land; Town credit rating is top-notch and strong
financial stability; Town Council has committed $10M in cash funding (included in 2025 Budget).
Current Proposed Financial Model
The current recommended financing structure includes an Essential Function Bond with a Town
of Vail issued Certificate of Participation (COP). An Essential Function Bond is a government-
purpose tax exempt bond used to finance affordable housing projects. The collateral and
feasibility are based on the project, with debt service paid from net operating income (NOI).
Because the project requires financing beyond what the bonds can provide given the current
interest rate environment and rental rate assumptions, the Town would need to provide a COP
for the remaining amount of financing. A COP is an effective tool for government finance
because it is a tax-exempt lease-financing agreement and not subject to TABOR requirements
for a ballot question to voters. It does require annual appropriation of debt service payments by
the Town Council. Town participation in the financing of the project through a COP also
provides confidence to the bond market that the project is supported by the local government.
This will lead to better interest rates for both bond issuances.
At current assumptions and interest rates as of December 10, the project would require
$133.8M in Senior Essential Function Bonds coupled with a $45.0M Town of Vail issued COP.
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Town of Vail Page 3
Please note these numbers will change based on changing market conditions prior to selling the
bonds (please see the sensitivity analysis below). The Essential Function Bond (EFB) is sized
to maximize the use of Net Operating Income of the project at a 1.30x debt service coverage
ratio, at current interest rates (5.34%) with a 40-year maturity. The EFB’s would capitalize the
first 3 years of interest, meaning during construction, the debt service payments are financed.
To close the remaining funding gap, the Town would issue $45.0M in tax-exempt COPs with a
1.0x debt service coverage ratio and current interest rate of 4.61% over a 40-year maturity. The
first three years of debt service on the COPs are also built into the debt issue, so there will not
by any out of pocket by the town for debt service during construction. Later year’s debt
payments are also covered by revenue from the project, with the exception of 2028 or 2029, the
first years of operation for the project when cash flows are very tight. The town may need to
cover $106,000 or more for those two years. Please refer to Attachment A for a full debt
service schedule as proposed for both the EFB’s and COPs.
An early “call” option will be evaluated, to allow for early payoff of the town’s COPs as the
project generates excess revenues. Excess revenues will also be needed to cover a capital
reserve fund and future operations.
Below is a summary of the pros and cons to this financial structure, which was selected from a
number of scenarios:
Pros Cons
NO Moral Obligation from the Town
COP issuance is within the Town’s threshold
for limited impact to debt capacity and credit
rating
COP issuance requires collateral of near
equivalent value
Does not require the Town’s support for the
entire financing, unlike moral obligation
structures
Town will be obligated to pay COP debt
service from governmental funds if the project
revenues are insufficient
No Master Lease
This financial structure also assumes the entire financing to be Tax Exempt, meaning the Town
will be limited to 10% or less of the project benefiting private uses such as master leasing. The
increased cost to allow for master leasing outweighed the benefit due to higher costs of issuing
a portion of debt as taxable bonds (higher interest rate). The town does not currently have a
prospect for master leasing of units and the financing would need to reflect a master lease
situation prior to the sale of bonds. This is a change from the earlier presentations to Council
that assumed 36 units would be under a master lease. Due to the higher cost of financing
and the time constraint of finding partners to master lease units, the project team does
not recommend pursuing a master lease component. This does not preclude the town from
master leasing in the future, up to approximately 10% of the units without impacting the tax-
exempt status of the bonds.
Collateral
COPs will require the town to provide collateral in equivalent value since the EFB’s are backed
by the West Middle Creek Apartments. Currently the town has the below facilities available to
use as collateral. Please note that insured value is used because a COP is technically a lease
of property and the property cannot be sold by investors in the case of default; they would find
another lessee to replace the revenue necessary to pay debt service.
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Town of Vail Page 4
Facility Building Insured Value
Public Works Administration Building $ 1,397,100
Donovan Park - Pavilion $ 2,161,600
Buzzard Park Housing $ 3,686,300
West Vail Fire Station - Fire Station #3 $ 8,449,300
Lionshead Welcome Center $ 9,882,600
Red Sandstone Parking Garage $11,168,000
Vail Golf Course and Clubhouse $16,100,000
Vail Village Transportation Center $81,173,900
Should the project be able to pay off some of the COPs early, the town’s collateral could be
released in part. It’s also possible to change the collateral in later years, through a legal
process to swap out properties.
Staff has been working closely with Hilltop to determine an appropriate amount of debt the town
could take on without impacting future debt capacity or the town’s strong credit rating as it
relates to this project specifically, taking into account potential other borrowing needs of the
town over the next few years. The suggested maximum COP amount for purposes of the
RFP was $60M to $70M. The recommended structure is well within that amount ($45M)
and leaves some room to grow should interest rates go up by as much as 50 basis points
(0.5%).
While we have an attainable solution to financing West Middle Creek, it is a very large
project for the Town to pursue. Today’s attainable solution will be impacted in the near
future by a number of factors, specifically interest rates, impact to construction costs
from possible tariffs and labor market, and net operating income.
The Piper Sandler team has included a sensitivity analysis to demonstrate the impact of those
factors have on the size of COP or other funding assistance that would be required from the
town. The purpose of the sensitivity analysis is to gauge Council’s confidence with
different levels of funding commitment by the town.
Interest Rate Risk
It’s possible that interest rates will drop a small amount before year end however there may be
increases during 2025. In the below chart, at current interest rates the town would need to
issue a $45M COP, with all the debt service payments covered by the project’s annual revenue
streams except for $106K (in 2029) assuming NOI annual growth of 2.5%. If interest rates rise
50 basis points (0.5%), the town would have to issue $59.2M in COPs and cover $3.0M in
debt service payments. Simply stated, interest rate risk is very impactful to this project.
46
Town of Vail Page 5
Net Operating Income (NOI) Risk
Another risk factor is net operating income however the financial feasibility of the project is not
as impacted by moderate changes in projected NOI growth. Net Operating Income (NOI) is
dependent upon how much rent we can charge (measured by varying levels of Area Median
Income “AMI”) and vacancy rates. Current assumptions on net income are fairly conservative,
with a 3% annual increase of expenses and vacancy rate of 5%. Net Operating Income growth
is projected at 2.5% annually.
The recommended financial model assumes that 30% of the units are unrestricted and
rented at rates affordable for residents earning 140% of Area Median Income (AMI) and
the remaining 70% are rented at 100% - 110% AMI. This model is critical to maintaining the
financial viability of the project. Essentially, the “market” units keep the remaining 70%
affordable and maintain enough NOI for future sustainability. For comparison purposes, renting
all of the units at 100% of AMI is provided as well.
100% AMI
ON ALL
30% MARKET/ 35%
100% & 35% 110% AMI
Overall Average Rents Used
Studio $2,346 $2,717
1 Bedroom $2,513 $2,903
2 Bedroom $3,015 $3,468
Overall $2,618 $3,022
AMI Limits 100% 110% 140%
Studio $2,346 $2,580 $3,284
1 Bedroom $2,513 $2,765 $3,518
2 Bedroom $3,015 $3,317 $4,221
Overall Deed-Restricted $2,618 $2,880 $3,665
Here are comparison rents currently for a similar product:
47
Town of Vail Page 6
Lionsridge
*70% workforce
restriction
Piedmont The Pike 6 West
Studio $2,352 $2,300
1Bd/1Ba $1,634 $2,656 $2,510 $2,300
2Bd/2Ba $2,262 $4,124 $3,200 $3,100
Piper Sandler and Corum provided information on the current “70/30” model for rents versus all
rents remaining at 100% AMI. Below is the financial pro-forma of the project with the proposed
structure compared to the entire project at 100% AMI rental rates. The impact is
approximately $1.2M less annual revenue available to make debt service payments,
thereby increasing the amount of COPs the Town would have to issue to plug the
funding gap.
Using this information Piper Sandler has created the below chart to show sensitivity to various
rental rate structures.
100% AMI ON
ALL
30% MARKET/ 35%
100% & 35% 110%
AMI
COMMENTS
RESIDENTIAL RENTAL INCOME
Gross Potential Revenue $8,791,339 $10,089,105 Trended in RR to 3% Above 2024 Limits
Vacancy & Concessions ($175,827) ($201,782) 2% in RFP; 5% and 7% Sensitized Below
Effective Gross Revenue $8,615,512 $9,887,323
OPERATING EXPENSES
Total Operating Expenses ($1,638,665) ($1,676,820)
NOI Before Reserves $6,976,847 $8,210,503
Reserves ($67,000) ($67,000) $250/UNIT ANNUALLY
NOI After Reserves $6,909,847 $8,143,503 at 2% Vacancy
NOI After Reserves $6,646,107 $7,840,830 at 5% Vacancy
NOI After Reserves $6,470,280 $7,639,048 at 7% Vacancy
RESIDENTIAL PRO FORMA - RENTS TRENDED TO 2025
48
Town of Vail Page 7
This chart shows that this current assumption on rents (included master leased units) and using
current interest rates will require the town to issue $45M in COPs. In comparison, the town
would need to issue $60.2M of COPs if the entire project was rented at 100% of AMI.
Town code allows the housing zone district to have 30% of the project at “market”. The impact
of having 30% of units rented close to “market” rates is significant to the viability of the project.
As such, the project team recommends that the 30% is not deed restricted from the outset,
which would provide maximum flexibility in rental rates at the outset. Once the project is
generating income and stable, future Town Council’s may deed restrict or rent to lower income
residents at their choosing. At current interest rates, the “70/30” model would require the
town to issue $41.8M in COPs.
Financing & Ownership Structure
Should Town Council determine an allowable amount of debt (COPs) to move forward with the
West Middle Creek Village Apartments, next steps include staff working with Piper Sandler,
Hilltop and Butler Snow to prepare for the issuance of bonds. This would begin immediately to
be ready for possible bond issuance in Spring, 2025. Bonds would only be issued within Town
Council’s direction regarding interest rates and an acceptable amount of COPs. The project
team will return to Council with the project’s final Gross Maximum Price (GMP) in late February,
along with updated interest rates and resulting COP requirement.
The structure for bond issuance as recommended by Hilltop and Butler Snow:
Essential Function Bonds would be issued by a non-profit corporation formed by the town. This
is a preferred structure because it will insulate the town from financial impacts such as debt
capacity and credit rating for this portion of project financing. The annual debt service of the
bonds is paid for by income generated by the project. This is similar to how the town structured
the purchase of Timber Ridge Apartments, with the formation of the Timber Ridge Affordable
Housing Corporation. Board seats for the new corporation would include town staff (i.e. Town
Manager’s office, Finance Director, Housing Director, Public Works Director), Town Council
members and a representative or two from the Vail Local Housing Authority.
Certificates of Participation (COPs) would be issued by the Town of Vail, impacting the debt
capacity for the town but little to no impact to the town’s credit rating as long as the COP
amount is less than $60M. The annual debt service of the COPs will be paid for by income
generated by the project, with the possible exception of early years of operation when the town
may need to subsidize a portion of the debt service payments.
49
Town of Vail Page 8
Timeline
Action/Process Date Responsible party
Final GMP Feb 28, 2025 Corum
Building permit Feb 28, 2025 Corum
Town Council Authorizes
creation of non-profit; bylaws
and articles of incorporation
March 6, 2025 Butler Snow, Staff
Town Council Authorizes
Debt (COP)
March 6, 2025 Butler Snow, Staff
Bond and COP Closings April 30, 2025 Piper Sandler, Hilltop, Staff
Summary
In summary, financing for the West Middle Creek Apartment project is attainable under the
recommended financing model, which includes 30% of units unrestricted and rented at near
market rental rates (and excludes master leasing). In addition, this project cannot be financed
under the current interest rate environment without the town issuing debt and subsidizing a
portion of future debt service payments. The financing model is highly sensitive to the interest
rate environment and net operating income. There are concerns of saturation in the housing
market given near-term housing projects coming online, including Timber Ridge, however the
demand for units will be informed by the most recent regional housing needs assessment.
IV. ACTION REQUESTED OF COUNCIL
Does Council have feedback on level of indebtedness the town should be willing
to take on with COPs to make the project feasible?
Does Council agree with 30% of units unrestricted and rented at near market rates
(up to 140% of AMI) to help keep the remainder of the project at lower rents (100%
- 110% AMI) and have a financially feasible project?
50
pipersandler.com |11Preliminary; subject to change. Assumes RFP unit mix for NOI, 2.5% growth, 5% vacancy, current market rates.
Preliminary Debt Service Schedule (Senior Revenue Bonds)
Period Principal Interest Gross
Debt Service
Retained
DSRF Earnings
DSRF Earnings
& Release
Capitalized
Interest Net Debt Service NOI (2.5% Growth)
Debt Service
Coverage Ratio
12/31/2025 - 3,568,637 3,568,637 (218,410) 218,410 3,568,637 - - -
12/31/2026 - 7,137,274 7,137,274 (436,819) 436,819 7,137,274 - - -
12/31/2027 - 7,137,274 7,137,274 (436,819) 436,819 7,137,274 - - -
12/31/2028 - 7,137,274 7,137,274 1,092,048 436,819 3,568,637 2,039,770 3,775,733 1.85
12/31/2029 - 7,137,274 7,137,274 - 436,819 - 6,700,455 8,710,763 1.30
12/31/2030 - 7,137,274 7,137,274 - 436,819 - 6,700,455 8,928,532 1.33
12/31/2031 - 7,137,274 7,137,274 - 436,819 - 6,700,455 9,151,746 1.37
12/31/2032 - 7,137,274 7,137,274 - 436,819 - 6,700,455 9,380,539 1.40
12/31/2033 - 7,137,274 7,137,274 - 436,819 - 6,700,455 9,615,053 1.43
12/31/2034 - 7,137,274 7,137,274 - 436,819 - 6,700,455 9,855,429 1.47
12/31/2035 - 7,137,274 7,137,274 - 436,819 - 6,700,455 10,101,815 1.51
12/31/2036 - 7,137,274 7,137,274 - 436,819 - 6,700,455 10,354,360 1.55
12/31/2037 - 7,137,274 7,137,274 - 436,819 - 6,700,455 10,613,219 1.58
12/31/2038 - 7,137,274 7,137,274 - 436,819 - 6,700,455 10,878,550 1.62
12/31/2039 95,000 7,137,274 7,232,274 - 436,819 - 6,795,455 11,150,513 1.64
12/31/2040 270,000 7,132,477 7,402,477 - 436,819 - 6,965,657 11,429,276 1.64
12/31/2041 460,000 7,118,842 7,578,842 - 436,819 - 7,142,022 11,715,008 1.64
12/31/2042 660,000 7,095,612 7,755,612 - 436,819 - 7,318,792 12,007,883 1.64
12/31/2043 875,000 7,062,282 7,937,282 - 436,819 - 7,500,462 12,308,081 1.64
12/31/2044 1,105,000 7,018,094 8,123,094 - 436,819 - 7,686,275 12,615,783 1.64
12/31/2045 1,355,000 6,962,292 8,317,292 - 436,819 - 7,880,472 12,931,177 1.64
12/31/2046 1,620,000 6,893,864 8,513,864 - 436,819 - 8,077,045 13,254,457 1.64
12/31/2047 1,910,000 6,808,490 8,718,490 - 436,819 - 8,281,671 13,585,818 1.64
12/31/2048 2,215,000 6,707,833 8,922,833 - 436,819 - 8,486,014 13,925,463 1.64
12/31/2049 2,545,000 6,591,103 9,136,103 - 436,819 - 8,699,283 14,273,600 1.64
12/31/2050 2,895,000 6,456,981 9,351,981 - 436,819 - 8,915,162 14,630,440 1.64
12/31/2051 3,270,000 6,304,415 9,574,415 - 436,819 - 9,137,595 14,996,201 1.64
12/31/2052 3,675,000 6,132,086 9,807,086 - 436,819 - 9,370,266 15,371,106 1.64
12/31/2053 4,100,000 5,938,413 10,038,413 - 436,819 - 9,601,594 15,755,384 1.64
12/31/2054 4,555,000 5,722,343 10,277,343 - 436,819 - 9,840,524 16,149,268 1.64
12/31/2055 5,040,000 5,482,295 10,522,295 - 436,819 - 10,085,475 16,553,000 1.64
12/31/2056 5,560,000 5,216,687 10,776,687 - 436,819 - 10,339,867 16,966,825 1.64
12/31/2057 6,115,000 4,918,115 11,033,115 - 436,819 - 10,596,295 17,390,996 1.64
12/31/2058 6,710,000 4,589,739 11,299,739 - 436,819 - 10,862,920 17,825,770 1.64
12/31/2059 7,340,000 4,229,412 11,569,412 - 436,819 - 11,132,593 18,271,415 1.64
12/31/2060 8,015,000 3,835,254 11,850,254 - 436,819 - 11,413,435 18,728,200 1.64
12/31/2061 8,730,000 3,404,849 12,134,849 - 436,819 - 11,698,029 19,196,405 1.64
12/31/2062 9,490,000 2,936,048 12,426,048 - 436,819 - 11,989,228 19,676,315 1.64
12/31/2063 10,300,000 2,426,435 12,726,435 - 436,819 - 12,289,615 20,168,223 1.64
12/31/2064 11,160,000 1,873,325 13,033,325 - 436,819 - 12,596,505 20,672,429 1.64
12/31/2065 23,725,000 1,274,033 24,999,033 - 12,085,331 - 12,913,701 21,189,239 1.64
Total: 133,790,000 243,621,784 377,411,784 - 29,339,689 21,411,822 326,660,273 524,104,015
AAttachment A
51
pipersandler.com |12
Preliminary Debt Service Schedule (COPs)Projected $106 thousand out-of-pocket exposure
Preliminary; subject to change. Assumes RFP unit mix for NOI, 2.5% growth, 5% vacancy, current market rates.
Period Principal Interest
Gross COP Debt
Service Capitalized Interest Net COP Debt
Service
Residual NOI
(2.5% Growth)(Deficit) / Surplus Combined NOI
Coverage
12/31/2025 - 1,058,166 1,058,166 1,058,166 - - - -
12/31/2026 - 2,116,331 2,116,331 2,116,331 - - - -
12/31/2027 - 2,116,331 2,116,331 2,116,331 - - - -
12/31/2028 - 2,116,331 2,116,331 1,058,166 1,058,166 1,735,963 677,798 1.22
12/31/2029 - 2,116,331 2,116,331 - 2,116,331 2,010,309 (106,023) 0.99
12/31/2030 - 2,116,331 2,116,331 - 2,116,331 2,228,078 111,746 1.01
12/31/2031 - 2,116,331 2,116,331 - 2,116,331 2,451,291 334,960 1.04
12/31/2032 - 2,116,331 2,116,331 - 2,116,331 2,680,085 563,753 1.06
12/31/2033 - 2,116,331 2,116,331 - 2,116,331 2,914,598 798,267 1.09
12/31/2034 - 2,116,331 2,116,331 - 2,116,331 3,154,974 1,038,643 1.12
12/31/2035 - 2,116,331 2,116,331 - 2,116,331 3,401,360 1,285,029 1.15
12/31/2036 - 2,116,331 2,116,331 - 2,116,331 3,653,905 1,537,574 1.17
12/31/2037 - 2,116,331 2,116,331 - 2,116,331 3,912,764 1,796,433 1.20
12/31/2038 35,000 2,116,331 2,151,331 - 2,151,331 4,178,095 2,026,764 1.23
12/31/2039 90,000 2,114,581 2,204,581 - 2,204,581 4,355,059 2,150,477 1.24
12/31/2040 150,000 2,110,081 2,260,081 - 2,260,081 4,463,619 2,203,538 1.24
12/31/2041 215,000 2,102,581 2,317,581 - 2,317,581 4,572,986 2,255,405 1.24
12/31/2042 285,000 2,091,831 2,376,831 - 2,376,831 4,689,091 2,312,260 1.24
12/31/2043 355,000 2,077,581 2,432,581 - 2,432,581 4,807,618 2,375,037 1.24
12/31/2044 435,000 2,059,831 2,494,831 - 2,494,831 4,929,508 2,434,676 1.24
12/31/2045 520,000 2,038,081 2,558,081 - 2,558,081 5,050,705 2,492,624 1.24
12/31/2046 610,000 2,012,081 2,622,081 - 2,622,081 5,177,412 2,555,330 1.24
12/31/2047 710,000 1,980,056 2,690,056 - 2,690,056 5,304,147 2,614,091 1.24
12/31/2048 810,000 1,942,781 2,752,781 - 2,752,781 5,439,450 2,686,668 1.24
12/31/2049 925,000 1,900,256 2,825,256 - 2,825,256 5,574,317 2,749,060 1.24
12/31/2050 1,040,000 1,851,694 2,891,694 - 2,891,694 5,715,278 2,823,584 1.24
12/31/2051 1,170,000 1,797,094 2,967,094 - 2,967,094 5,858,606 2,891,512 1.24
12/31/2052 1,305,000 1,735,669 3,040,669 - 3,040,669 6,000,840 2,960,171 1.24
12/31/2053 1,450,000 1,667,156 3,117,156 - 3,117,156 6,153,790 3,036,634 1.24
12/31/2054 1,605,000 1,591,031 3,196,031 - 3,196,031 6,308,744 3,112,713 1.24
12/31/2055 1,770,000 1,506,769 3,276,769 - 3,276,769 6,467,525 3,190,756 1.24
12/31/2056 1,940,000 1,413,844 3,353,844 - 3,353,844 6,626,958 3,273,114 1.24
12/31/2057 2,135,000 1,307,144 3,442,144 - 3,442,144 6,794,700 3,352,557 1.24
12/31/2058 2,335,000 1,189,719 3,524,719 - 3,524,719 6,962,851 3,438,132 1.24
12/31/2059 2,555,000 1,061,294 3,616,294 - 3,616,294 7,138,822 3,522,528 1.24
12/31/2060 2,785,000 920,769 3,705,769 - 3,705,769 7,314,765 3,608,997 1.24
12/31/2061 3,030,000 767,594 3,797,594 - 3,797,594 7,498,376 3,700,782 1.24
12/31/2062 3,255,000 635,031 3,890,031 - 3,890,031 7,687,087 3,797,056 1.24
12/31/2063 3,495,000 492,625 3,987,625 - 3,987,625 7,878,608 3,890,983 1.24
12/31/2064 3,750,000 339,719 4,089,719 - 4,089,719 8,075,923 3,986,205 1.24
12/31/2065 4,015,000 175,656 4,190,656 - 4,190,656 8,275,538 4,084,882 1.24
Total: 42,775,000 69,453,022 112,228,022 6,348,994 105,879,028 197,443,743 91,564,714
52
AGENDA ITEM NO. 2.2
Item Cover Page
DATE:December 17, 2024
TIME:30 min.
SUBMITTED BY:Greg Roy, Community Development
ITEM TYPE:Presentation/Discussion
AGENDA SECTION:Presentation/Discussion (1:00pm)
SUBJECT:Cascade Area A Discussion (2:10pm)
SUGGESTED ACTION:Listen to presentation and provide feedback.
PRESENTER(S):Russell Forest, Town Manager and Greg Roy, Planning Manager
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
Cascade Discussion 121724
Cascade Village Presentation 12172024.pptx
Cascade A Redevelopment Public Comment
53
To:Vail Town Council
From:Russell Forrest, Town Manager
Date:December 17, 2024
Subject:Cascade Goals and Vision
____________________________________________________________________________
1. PURPOSE
The purpose of this item is to continue the discussion on goals and public benefits for the
future vison of Cascade Village. Specifically, staff would request:
A) The Developer respond to the specific questions Council discussed.
B) Council provide feedback and final comments on goals and the opportunity statement for
Cascade Village that is found in Exhibit A to the resolution on this evening’s agenda and
summarized below.
C) Discuss and summarize public benefits for Cascade Village that should be achieved with
future redevelopment.
2. BACKGROUND
At the work session on December 3
rd, an opportunity statement and goals were discussed.
This opportunity statement and goals are included in the evening meeting as Exhibit A to
Resolution No. 57, Series of 2024 to provide guidance for future development in this area
and copied below for your reference.
Section 1: Opportunity Statement
“Cascade Village, Development Area A, was originally intended to be a third village in
Vail and distinct portal to Vail Mountain. However, unlike Vail Village and Lionshead
Village, Cascade Village, Development Area A, has not reached its full potential as a
vibrant village and mountain portal due to a lack of reinvestment realized elsewhere in
Vail.
With an inadequate level of public transportation service and pedestrian connectivity,
Cascade Village is perceived to be remotely located and disconnected from the other
two villages. Development Area A lacks the charm, character, appeal, and vibrancy
expected of a world-class resort. Traffic flow through Development Area A can become
congested and disconnected at times. Optimized hospitality, retail, and recreational
uses, including community amenities, are unrealized. Many of the buildings are
outdated, physically aging and functionally underutilized, resulting in negative impacts to
property values, private profits, and public revenues. Significant redevelopment
54
Town of Vail Page 2
opportunities exist; however, no overall plan or underlying zoning is prescribed to guide
development.
For the first time since its original approval, the vast majority of Development Area A is
back under a single ownership structure. Given the renewed single ownership structure
and unrealized potential of Development Area A, the opportunity now exists for the
public and private sectors to act collaboratively to renew and revitalize this important
mountain portal for the benefit of the Vail community.”
Section 2: Redevelopment Goals and Objectives
Seize the Full Opportunity – The uses within Development Area A are not performing
to their full potential. Like the commercial core areas of Vail Village and Lionshead
Village, it is to the mutual benefit of the Vail community and the property owner(s)within
Development Area A to implement strategies to realize the full potential of Cascade
Village.
Improved Vehicular Circulation – Lessen vehicle trips on Westhaven Drive and
enhance traffic circulation on the South Frontage Road through the support for vehicle
access to the parking garage and Aria development site from the South Frontage Road.
Parking - Meet the vehicle parking needs of the uses, as demonstrated by a Parking
Management Plan, within Development Area A and support managed public parking that
optimizes the utilization and operation efficiencies of an expanded parking garage.
Strengthened Economic Base - Increase sales tax and lodging collections on a per
square foot basis through the revitalization of new and existing retail spaces, increased
hotel occupancy, and a managed short-term rental program.
Expanded Public Transportation – Explore the opportunity to expand the operations
and frequency of service of the free Town of Vail public bus system into Cascade
Village.
Pedestrian Connectivity – Implement pedestrian connectivity design solutions to
enhance pedestrian access to Cascade Village. This is most effectively achieved
through a coordinated effort with the West Lionshead master planning process.
Economic Redevelopment Incentives - Increase the total allowable density, including
both dwelling units per acre and gross residential floor area (GRFA), and grant added
building height allowances, as has been demonstrated to be effective tools in Lionshead
Village, to create financial benefits to redevelop Cascade Village and secure public
infrastructure improvements and community amenities.
Timeframe – work toward implementation of the first phase of redevelopment (i.e.
Cornerstone Condominiums) in 2025, with subsequent phases to be completed over a 5-
to-7-year timeframe.
Chairlift Access – Chair 20 often provides the fastest access to Vail Mountain. It’s
continued operation is important to the Vail community and all of Cascade Village.
Ensure maintenance/construction vehicle access to the chairlift base area to
accommodate required maintenance and future chairlift upgrades.
Phased Redevelopment - Identify a mutually accepted phased approach to
redevelopment within Development Area A. The Cornerstone Building is the most likely
first phase of redevelopment.
Environmental stewardship – Environmental sustainability best practices shall be
incorporated into the design, construction, and future operations of the new buildings
including solar array installation, car share program, energy conservation code
construction compliance, water conservation measures, durable building materials, etc.
55
Town of Vail Page 3
Renewal and Redevelopment - Enhance the urban design and update the architectural
design consistent with the character of Special Development District No. 4 and the
adopted design standards and guidelines of the Town of Vail.
Collaboration Amongst Stakeholders - Actively engage with potentially affected
parties, stakeholders, adjacent property owners, and owners within Development Area A
throughout the development review process to gain input and feedback on the proposed
overall development plan.
Public/Private Partnership – Partner with the Town of Vail to provide community
amenities such as stream tract enhancements, public transit improvements and
community housing and daycare facilities on the existing outdoor tennis court site.
Improved Operational Infrastructure - Ensure that adequate centralized operational
services, such as loading & delivery, trash/recycling, etc. are accommodated within
Development Area A.
3. POTENTIAL PUBLIC BENEFITS
Based on feedback and discussion from the December 3
rd work session, staff would suggest
that the following public benefits be considered by Council. In these recommendations, staff
is assuming that future developers are mitigating impacts consistent with Town policy
(affordable housing, traffic conflicts) and working with the Town to create appropriate and
safe infrastructure (parking, transportation/bus stops, pedestrian connections). These types
of improvements will be discussed and addressed in future applications and are not
referenced below. Given that, potential public benefits for the Council’s consideration
include:
A. Recognizing market demands will change over time, program retail, & food and
beverage experiences to maximize vibrancy and the desire for locals and guests to
visit Cascade Village. Correspondingly, public infrastructure (bus routes, pedestrian
connections, and pedestrian areas) should be designed to connect Cascade Village
to the rest of the community and support vibrancy.
B. Conveyance of the Outdoor Tennis Court Site to the Town of Vail for future public
uses.
C. Monetary contribution to the Town to support future public uses.
D. Perpetual public access at preferential local pricing to amenities. This might include
partnership with the medical community for therapy sessions, spa use, public access
to exercise facilities and similar opportunities for a reasonable fee determined by the
service provider.
4. ACTION REQUESTED OF COUNCIL
Council is requested to review responses from the developer on specific Council questions,
review and provide comment on the opportunity statement and proposed goals for Cascade
Village and provide direction on public benefits that are desired in the future.
56
CASCADE VILLAGE AREA A
(RE)DEVELOPMENT PLAN.
THE BROADER VISION.
______________________________________
_________
Vail Town Council Presentation.
Town of Vail.
December 17, 2024
57
CASCADE
VILLAGE AREA A
(RE)DEVELOPMEN
T PLAN. THE
BROADER
VISION.
3, 2024
•What are the roles,
responsibilities, and operations of
the Cascade Village Metro-District?
(Scott Wagner, Metro-District,
Chair)
•Describe the SDD major amendment
process? (Town staff)
•Can a DDA or TIF District be
established to fund public
improvements? (Town staff)
•How is Cascade Village different
from Vail Village and Lionshead?
(PHH)
•What is the long-term vision for
Area A? (PHH)
•How do existing easements impact
future redevelopment? (PHH)
•What steps are being taken to
engage with the neighborhood? (PHH)
•What are the expected community
amenities? (PHH/Town staff)
o What are the Town’s
expectations?
o When will the amenities be
provided?
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From:Luis Rojas
To:Stephanie Kauffman
Cc:publicinput.vailcouncil@vail.gov
Subject:Cornerstone Development
Date:Tuesday, December 17, 2024 3:57:41 PM
Attachments:logoddnewclaim_5ffa1ec2-9afa-4664-9e25-f2b644f297e6.png
ruletaods3_3eee22dc-71e8-483c-bcc4-c27beb26f510.png
Cascade Letter.pdf
To whom it may concern,
I would like to add my name to the letter presented to the Vail Town Council with regards to the
Cornerstone Proposed Development.
Regards and happy holidays!
Luis Rojas
Country lead México
LOGO DD NEWCLAIM.png
luis.rojas@dentaid.mx
www.dentaid.com
Legal_Notice
Navidad 16x9 ESP (1) (1).jpg
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From:Luis Rojas
To:Stephanie Kauffman
Cc:publicinput.vailcouncil@vail.gov
Subject:Cornerstone Development
Date:Tuesday, December 17, 2024 3:57:41 PM
Attachments:logoddnewclaim_5ffa1ec2-9afa-4664-9e25-f2b644f297e6.png
ruletaods3_3eee22dc-71e8-483c-bcc4-c27beb26f510.png
Cascade Letter.pdf
To whom it may concern,
I would like to add my name to the letter presented to the Vail Town Council with regards to the
Cornerstone Proposed Development.
Regards and happy holidays!
Luis Rojas
Country lead México
LOGO DD NEWCLAIM.png
luis.rojas@dentaid.mx
www.dentaid.com
Legal_Notice
Navidad 16x9 ESP (1) (1).jpg
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AGENDA ITEM NO. 2.3
Item Cover Page
DATE:December 17, 2024
TIME:40 min.
SUBMITTED BY:Lauren Noll, Finance
ITEM TYPE:Presentation/Discussion
AGENDA SECTION:Presentation/Discussion (1:00pm)
SUBJECT:STR Draft Ordinance Discussion (2:40pm)
SUGGESTED ACTION:Staff requests feedback on the draft ordinance prior to the first reading
at this evening's meeting.
PRESENTER(S):Carlie Smith, Finance Director
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
121724 STR Memo
Ord. No. 24, Series 2024
12-17-24 STR Update
Short-Term Rental Fee Public Comment
107
1
TO: Town Council
FROM: Finance Department
DATE: December 17, 2024
SUBJECT: Short-term Rental Fee Changes
I. BACKGROUND
Earlier this year, the Council requested an update on short-term rentals and asked staff to review
the town's STR (short-term rental) regulations. On November 5th, the Council received a STR
presentation, which included:
• Total number of current STR licensed properties by zone and property type in the town
• Various approaches to regulating STRs, including zoning regulations (such as caps),
ownership duration requirements, and increased fees
• A summary of the STR nexus study that was completed in 2022 supporting an STR impact
fee to fund housing initiatives
• Peer community STR regulations and dedicated housing revenues
• A request for Council to define their goals for the STR program in order to guide
recommendations for future change.
Council supported an increase in STR fees as a way to financially support community housing
projects and programs versus managing them with zoning, limits, or ownership time requirements
and supported an annual per bedroom fee between $1,000 to $2,000.
This afternoon’s presentation summarizes a draft ordinance amending the STR code with the
additional of an annual $1,000 per sleeping area fee for STRs. Staff requests feedback on the draft
ordinance prior to the first reading at this evening's meeting.
II. STR STUDY SUPPORTING FEE
During 2021 and 2022, the Town contracted with RRC Associates and Economic Planning
Systems (EPS) to perform a comprehensive study of the Vail short-term rental market with the goal
of determining the impact of STRs on the local housing market. The study looked at the STRs by
business license zone, zone district, neighborhood, and property characteristics (bedroom count,
property type), and property usage. The study results suggested that the increased number of
STRs Vail has experienced in recent years has had a modest impact on the overall local owner
and renter-occupied housing inventories. The study also indicated that Vail has one of the highest
proportions of vacant housing units in the state, which could possibly help explain the reason for
only a modest increase in STRs.
108
2
To coincide with the comprehensive study, EPS conducted a nexus study that
demonstrated how STRs drive an increased demand for additional employees to support
the spending generated by the STR bed base and, therefore, increase the housing needed
for those employees to live. Specifically, the study found that for every 1,000 accommodation
units, visitor spending generates a demand for 3,208 jobs across all industries in the town. This
translates to a need for 2,673 employees in 1,445 households. Of 1,445 households, 1,426
households are compensated below the income required to afford market-rate housing, which the
study identifies as 200% of AMI. To make up that gap, the analysis supported a maximum STR fee
per bedroom of $5,912. An important point to emphasize is that the study did not find that the
STRs are causing the affordability gap. The affordability gap is assumed to result from a resort
town environment with lower worker wages combined with a scarcity of housing in a desirable
housing market.
The study indicates that STRs offering hotel or resort-type amenities, as well as those
located in residential neighborhoods, both have similar demands on employee housing.
Therefore, it advocates for a uniform fee applicable to all types and locations of STRs. The
Town’s legal counsel has also advised implementing an impact fee would need to be uniform fee
across all STR properties in both Zone 1 and Zone 2, including condo-hotels with 24/7 onsite
management and fractional units. Having a non-uniform fee could lead to potential litigation.
III. STR FEE INCREASE
The proposed draft ordinance included with this memo amends the town’s code to establish an
annual impact fee of $1,000 per designated sleeping area for short-term rental licenses. This fee,
based on the 2022 nexus study, would apply uniformly to all short-term rentals and would be
allocated to support community housing projects and programs.. The term "designated sleeping
area" is used in the ordinance, rather than "per bedroom," to more accurately reflect the total guest
capacity being advertised. This ensures a more appropriate and consistent calculation of the fee
based on the actual accommodations offered and, therefore, guest spending impacts linked to the
study. A $1,000 per designated sleeping area fee is anticipated to generate an estimated $6.0M
annually from approximately 2,616 short-term rental properties located within Town of Vail
boundaries. This impact fee differs from the Town’s current fee ($50 for on-site managed and $260
for offsite managed) which is based only on administrative costs. The existing administrative fee,
designed to cover ongoing program expenses such as staffing, software, and other operational
costs, will remain unchanged.
Staff has also proposed a primary residence exemption in the ordinance, which exempts primary
residences from the per-sleeping area fee for those who rent for fewer than 30 cumulative days.
This exemption allows primary residents to rent their homes during specific times of the year while
still addressing cases where primary residents STR a lock off unit or bedroom for longer periods.
Primary residents would still be required to pay the current administrative fee.
Staff typically begins the STR renewal process in January, with the ordinance requiring renewal
registrations and payments to be submitted by February 28th. After consulting with the town’s STR
software provider, Lodging Revs, it has been determined that implementing this change would
likely take two to three months for updates and testing. As a result, the change would not be ready
by the February 28th deadline. Additionally, staff does not recommend setting the licensing
deadline during the off-season (April/May).
109
3
Other municipalities, including Estes Park, Breckenridge, Telluride, and Pagosa Springs, have
implemented similar per-bedroom impact fees based on comparable studies. The chart below
compares several peer community STR fees/taxes; however, a full matrix of STR ordinances
across the mountain community is also attached. A $1,000- $2,000 per bedroom fee would be on
the higher side of fees; however, many of these municipalities also have an STR excise tax in
addition to a fee including Avon, Aspen, Crested Butte, Dillon, Ouray and Telluride. When
compared to those communities that have both a fee and a tax, a $1,000-$2,000 fee would be on
the low to mid-range when compared to the total tax and fees paid annually per unit.
Community Fee/Tax Implementation Date
Aspen Condotel: $148
All others: $394
Tax: 10% excise tax depending on type
10/1/2022
Breckenridge $75-$175 base fee
$756/bedroom regulatory fee
1/01/2023
Crested Butte $250 for Primary Occupancy license
$800 for Unlimited license
7.5% vacation rental excise tax
Fee: 01/01/2023
Tax: 01/01/2021
Estes Park $200 base fee;
$50 per bedroom
$1,430 workforce housing regulatory
linkage fee (adjusted annually for
inflation)
1/1/2023
Jackson, Wyoming One-time: $517/bedroom 1/1/2024
Steamboat $250;
9% STR tax
1/1/2023
Telluride $288 base fee
$857 per bedroom regulatory fee (40%)
2.5% STR tax
Fee: 1/1/2024
Tax: 1/1/2020
The new fee could be used toward several future projects, including:
• Purchase of new Timber Ridge Units: $25M
• West Middle Creek- 268 New units: $161M
• Development of East Vail CDOT Parcel
• Vail InDeed program enhancements
• Partner with other communities and organizations towards down valley projects such as the
development of the Eagle-Vail parcel
• Add environmental efficiencies to current and future housing projects (20% price increase)
• More subsidies of current and future housing projects to be closer to or below 100% AMI
affordability
IV. COMMUNITY OUTREACH AND LODGING TAX
During the week of November 18th, staff held two roundtable discussions with the condotel lodging
community to gather feedback on the proposed fee increase. The condotel community expressed
concerns that a higher fee could serve as a "tipping point" for average daily rates (ADRs),
potentially affecting sales tax revenue, lodging tax revenue and the number of STR licenses
issued. They also noted that most village core condo properties were purpose-built for visitors and
that the higher fee seemed inequitable compared to the hotels. They suggested that a lodging tax
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4
increase would be a fairer approach and that taxes may be viewed as more easily passed on to
visitors compared to a fee. Additionally, they pointed out that each condotel operates differently,
meaning the fee increase could have varying financial and operational impacts across properties.
The discussion also touched on fractional properties, where concerns were raised that short-term
rental bookings may not be traceable to specific ownership shares. This could result in an
inequitable distribution of costs, particularly for owners who do not rent out their fractional shares.
Finally, there were concerns about the timing of this change, as well as a lack of awareness within
the community about the new fee proposal.
Staff also presented to the Vail Economic Advisory Committee, which echoed similar concerns
about the new fee. However, they also shared that implementing a new STR fee might be
premature with a new housing needs assessment due soon.
V. ACTION REQUESTED OF COUNCIL
• What per sleeping area fee does Council support?
• Does Council support a primary resident exemption from the new fee for cumulative rentals under
30 days?
• When would the Council like this order to go into effect, creating a new annual renewal date for the
STR program?
• Are there any other changes to the order the Council would like to include?
111
2024 2022 CHANGE 2024 2022 CHANGE
CASCADE VILLAGE VAIL VILLAGE
Condos without 24/7 Front Desk Condos without 24/7 Front Desk
COLDSTREAM CONDOMINIUMS 29 24 5 ▲ALL SEASONS 23 20 3 ▲
COLORADO MOUNTAIN CONDO 5 4 1 ▲ALPHORN CONDO 5 5 0
MILLRACE 23 23 0 ALTUS VAIL RESIDENCES CONDO 4 0 4 ▲
WESTHAVEN AT CASCADE VILLAGE 6 0 6 ▲B. S. CONDO (1ST BANK)4 3 1 ▲
TOTAL 63 51 12 ▲BELL TOWER CONDOMINIUMS 1 1 0
BISHOP PARK 0 1 ‐1
Condos with 24/7 Front Desk BRIDGE STREET LODGE 10 10 0
EAGLE POINT 52 54 ‐2 CREEKSIDE CONDO 2 2 0
LIFTSIDE CONDOMINIUMS 9 8 1 ▲EDELWEISS 0 2 ‐2
TOTAL 61 62 ‐1 GOLDEN PEAK CONDOMINIUMS 4 1 3 ▲
GORE CREEK PLAZA 1 1 0
HOLIDAY HOUSE (9 VAIL ROAD)16 16 0
LIONSHEAD MEADOW VAIL PLACE CONDO 1 1 0
Condos without 24/7 Front Desk MILL CREEK COURT CONDO 3 4 ‐1
ENZIAN AT VAIL CONDO 11 12 ‐1 NORTHWOODS CONDOMINIUMS 18 18 0
GORE CREEK PLACE 4 3 1 ▲PLAZA LODGE 6 6 0
LIONSHEAD ARCADE CONDO 13 13 0 RAMS‐HORN LODGE CONDO 13 13 0
TREETOPS CONDO 13 10 3 ▲RED LION INN CONDOS 1 1 0
VAIL LIONSHEAD CENTRE CONDO 9 11 ‐2 RIVERHOUSE CONDO 4 2 2 ▲
VANTAGE POINT ‐ VAIL CONDO 51 40 11 ▲SCORPIO 12 11 1 ▲
TOTAL 101 89 12 ▲SKI CLUB VAIL 1 1 0
TALISMAN CONDO 2 1 1 ▲
Condos with 24/7 Front Desk TEXAS TOWNHOMES 4 3 1 ▲
ANTLERS CONDOMINIUMS 88 84 4 ▲TYROLEAN CONDOS 5 4 1 ▲
ARRABELLE AT VAIL SQUARE 43 43 0 VAIL CORE CONDO 12 13 ‐1
FIRST WESTWIND 26 25 1 ▲VAIL GATEWAY PLAZA CONDO 2 1 1 ▲
LANDMARK‐VAIL CONDOMINIUMS 60 59 1 ▲VAIL TOWNHOUSE 3 2 1 ▲
LIFT HOUSE 33 35 ‐2 VAIL TRAILS CHALET 8 9 ‐1
LION (THE)38 33 5 ▲VAIL TRAILS EAST 9 9 0
LION SQUARE CONDO 85 76 9 ▲VAIL VILLAGE FILING 1303▲
LION SQUARE NORTH 28 25 3 ▲VAIL VILLAGE PLAZA CONDOS 1 7 ‐6
LODGE AT LIONSHEAD 40 37 3 ▲VILLA CORTINA 16 16 0
MARK LODGE 12 13 ‐1 VILLA VALHALLA CONDO 6 8 ‐2
MONTANEROS CONDOMINIUMS 33 37 ‐4 VILLAGE CENTER 11 9 2 ▲
SKAAL HUS APT CONDO 1 0 1 ▲VILLAGE INN PLAZA 14 7 7 ▲
VAIL 21 CONDO 17 18 ‐1 VORLAUFER CONDO 3 3 0
VAIL INN (EVERGREEN LODGE)11 11 0 WALL STREET BUILDING CONDO 6 5 1 ▲
VAIL INTERNATIONAL 41 36 5 ▲TOTAL 234 216 18 ▲
VAIL SPA CONDOMINIUMS 38 37
WDL VAIL (RITZ‐CARLTON)43 42 1 ▲Condos with 24/7 Front Desk
TOTAL 637 611 26 ▲APOLLO PARK/INTERVAL 37 38 ‐1
AUSTRIA HAUS 11 5 6 ▲
CHALETS AT THE LODGE AT VAIL 6 4 2 ▲
CHATEAU CHRISTIAN TOWNHOUSES 6 6 0
FOUR SEASONS (ONE VAIL ROAD)27 18 9 ▲
2024 2022 CHANGE LODGE AT VAIL 39 41 ‐2
TOTAL ZONE 1 LODGE TOWER 28 30 ‐2
Total Cascade 124 113 11 ▲MANOR VAIL 88 82 6 ▲
Total Lionshead 738 700 38 ▲MOUNTAIN HAUS CONDO 45 54 ‐9
Total Vail Village 707 655 52 ▲ONE WILLOW BRIDGE 18 19 ‐1
TOTAL 1569 1468 101 ▲RESIDENCES AT SOLARIS‐VAIL 61 33 28 ▲
RIVA RIDGE CHALETS NORTH 4 3 1 ▲
RIVA RIDGE CHALETS SOUTH 13 13 0
TOTAL ZONE 1 SEBASTIAN 13 17 ‐4
Condos without 24/7 Front Desk 398 356 42 ▲SKAAL HUS APT CONDO 1 0 1 ▲
Condos with 24/7 Front Desk 1171 1112 59 ▲VAIL MOUNTAIN LODGE 8 7 1 ▲
TOTAL 1569 1468 101 ▲WILLOWS CONDOMINIUMS AT VAIL 12 11 1 ▲
WREN INTERVAL 56 58 ‐2
TOTAL 473 439 34 ▲
Short‐Term Rental Condo Registrations by Business Area and Building Name: Zone 1
ƚƚĂĐŚŵĞŶƚ
112
2024 2022 CHANGE 2024 2022 CHANGE
EAST VAIL WEST VAIL
Condos without 24/7 Front Desk Condos without 24/7 Front Desk
ALTAIR VAIL INN 7 5 2 ▲AROSA TOWNHOUSES 1 0 1 ▲
BALD MOUNTAIN TOWNHOMES 0 1 ‐1 BRANDYWINE TRACE CONDO 3 2 1 ▲
BIGHORN TERRACE 1 0 1 ▲BUFFEHR CREEK CONDOS 0 1 ‐1
BOOTH CREEK TOWNHOUSES 6 6 0 BUFFER CREEK WEST 2 1 1 ▲
BOOTH FALLS MTN HOMES 3 3 0 CAMELOT TOWNHOUSES 1 1 0
COLUMBINE ROAD CONDOS 8 7 1 ▲CASA DEL SOL TOWNHOMES 2 3 ‐1
COLUMBINE WEST CONDO 0 3 ‐3 CHAMONIX CHALETS 6 7 ‐1
COURTSIDE TOWNHOMES 9 8 1 ▲COLUMBINE WEST CONDO 2 0 2 ▲
GORE CREEK CONDOMINIUMS 1 1 0 DOME MAIN CONDO 3 1 2 ▲
HEATHER OF VAIL CONDOS 0 1 ‐1 GROUSE GLEN AT VAIL 101 ▲
MOUNTAIN MEADWO CONDOS 0 4 ‐4 HAMLET CHALET 303 ▲
NORTHWOODS CONDOMINIUMS 1 0 1 ▲HAMLET TOWNHOUSES 4 0 4 ▲
PITKIN CREEK PARK 36 38 ‐2 HILLSIDE CONDO 3 3 0
PITKIN CREEK TOWNHOUSES 1 0 1 ▲INTERLOCHEN CONDO 14 10 4 ▲
RIVERBEND AT VAIL 413 ▲MATTERHORN INN 1 2 ‐1
SPRUCE PARK ESTATES 1 1 0 MEADOW BROOK CONDO 1 1 0
SUNWOOD AT VAIL CONDO 2 1 1 ▲MEADOW CREEK CONDO 22 21 1 ▲
TIMBER FALLS CONDO 45 39 6 ▲MUSTANG CONDOMINIUMS 1 0 1 ▲
VAIL EAST LODGING 7 8 ‐1 NORTHRIDGE CONDO 2 0 2 ▲
VAIL EAST TOWNHOUSE CONDOS 15 15 0 PTARMIGAN 16 17 ‐1
VAIL GOLFCOURSE TOWNHOMES 12 13 ‐1 SPRUCE CREEK TOWNHOMES 1 0 1 ▲
TOTAL 159 155 4 ▲SUNLIGHT NORTH CONDOS 0 1 ‐1
TIMBER CREEK LODGES CONDOS 3 4 ‐1
Condos with 24/7 Front Desk TIMBER FALLS CONDO 1 0 1 ▲
FALL RIDGE CONDOS 37 26 11 ▲VAIL DAS SCHONE CONDO 3 1 2 ▲
GORE CREEK CONDOMINIUMS 1 0 1 ▲VAIL HEIGHTS CONDO 3 1 2 ▲
RACQUET CLUB TOWNHOMES 11 17 ‐6 VAIL SKY HIGH CONDO 1 0 1 ▲
VAIL RACQUET CLUB CONDO 64 81 ‐17 VALLEY CONDO 8 2 6 ▲
WREN HOUSE 5 5 0 VESTLANDET 2 2 0
TOTAL 118 129 ‐11 TOTAL 110 81 29 ▲
SANDSTONE
Condos without 24/7 Front Desk
770 POTATO PATCH DRIVE CONDO 6 3 3 ▲
ASPEN TREE CONDO 2 2 0
BREAKAWAY WEST CONDO 33 31 2 ▲
BROOKTREE TOWNHOUSES 13 10 3 ▲2024 2022 CHANGE
EASTERN VALLET CONDOS 0 1 ‐1 TOTAL ZONE 2
EIGER CHALETS 3 1 2 ▲ Total East Vail 277 284 ‐7
GROUSE GLEN AT VAIL 101 ▲ Total Sandstone 353 320 33 ▲
HOMESTAKE AT VAIL 18 16 2 ▲ Total West Vail 110 81 29 ▲
LIONS MANE CONDO 10 8 2 ▲TOTAL 740 685 55 ▲
POTATO PATCH CLUB CONDO 11 9 2 ▲
SANDSTONE 70 18 12 6 ▲
SANDSTONE PARK CONDOS 1 0 1 ▲TOTAL ZONE 2
SAVOY VILLAS CONDOMINIUMS 9 8 1 ▲Condos without 24/7 Front Desk 444 381 63 ▲
SNOW FOX CONDOS 9 5 4 ▲Condos with 24/7 Front Desk 296 304 ‐8
SNOW LION AT VAIL CONDO 11 8 3 ▲TOTAL 740 685 55 ▲
SUN VAIL CONDOMINIUM 29 31 ‐2
TELEMARK TOWNHOUSE 1 0 1 ▲
TOTAL 175 145 30 ▲
Condos with 24/7 Front Desk
SANDSTONE CREEK CLUB CONDO 64 64 0
SIMBA RUN 60 57 3 ▲
VAIL RUN RESORT COMMUNITY 54 54 0
TOTAL 178 175 3 ▲
Short‐Term Rental Condo Registrations by Business Area and Building Name: Zone 2
113
2024 2022 CHANGE 2024 2022 CHANGE
CASCADEVILLAGE EASTVAIL
CASCADE 4 5 Ͳ1 BIGHORN 65 63 2 Ÿ
GLENLYON 22 21 1 Ÿ BOOTHFALLS 18 16 2 Ÿ
TOTAL 26 26 0 COLUMBINE 2 2 0
GOLFCOURSE 23 14 9 Ÿ
PITKINCREEK 1 1 0
VAILMEADOWS 3 5 Ͳ2
TOTAL 112 101 11 Ÿ
LIONSHEAD SANDSTONE
BEAVERDAM 3 3 0 POTATOPATCH 7 7 0
FORESTROAD 9 9 0 SANDSTONE 13 13 0
MEADOWDR 1 2 Ͳ1 TOTAL 20 20 0
TOTAL 13 14 Ͳ1
VAILVILLAGE WESTVAIL
BEAVERDAM 3 2 1 Ÿ BUFFEHRCREEK 9 9 0
BRIDGESTREET 0 1 Ͳ1DASSCHONE 17 18 Ͳ1
FORESTROAD 13 11 2 Ÿ INTERMOUNTAIN 26 26 0
HANSONRANCHROAD 1 1 0 LIONSRIDGE 18 19 Ͳ1
MEADOWDR 4 3 1 Ÿ MATTERHORN 37 32 5 Ÿ
TOTAL 21 18 3 Ÿ VAILHEIGHTS 6 6 0
VAILRIDGE 2 3 Ͳ1
TOTAL 115 113 2 Ÿ
TOTALCASCADE 26 26 0 TOTALEASTVAIL 112 101 11 Ÿ
TOTALLIONSHEAD 13 14 Ͳ1 TOTALSANDSTONE 20 20 0
TOTALVAILVILLAGE 21 18 3 Ÿ TOTALWESTVAIL 115 113 2 Ÿ
TOTALZONE160582Ÿ TOTALZONE2 247 234 13 Ÿ
ShortͲTermRentalSFH/TownhomeRegistrationsbyNeightborhood
ZONE1ZONE2
114
Short-Term Rental Ordinance Matrix
Colorado Association of Ski Towns-May 2023, Updated October 2024 by Vail Staff
Agency Allowed in
Primary
Residence?
Allowed in Non-
Primary
Residence?
License
Required?
Limit # licenses issued?Limit # of licenses issued per
person?
License Fee
($)
Done a Fee
Study?
Which Taxes
Required?
(lodging, STR,
excise, etc.) Note
%
Concentration Limits?
(i.e. # allowed per
block or zone)
Zoning Limitations? (i.e. STRS
only allowed in certain
zones.)
Occupancy Limits? Limits on # of nights per
year?
Require a “local responsible
party” to take complaints?
Mandatory response time
for the responsible party to
address complaints?
Use/have used
moratoriums?
Number of STR
licenses issued
Aspen
yes yes yes Yes. There are 3 STR permit
types. Limit only applies in
certain residential zone districts.
Limits on owner-occupied (STR-
OO), and traditional/classic STRs
(STR-C). Condo-hotels are subject
to STR laws, but have some
additional flexiblity
no $148/unit/yr
for condo-hotel
units;
$394/unit/yr
for classic and
owner
occupied. All
licence holders
must also have
an annual $150
business license
too
yes 11.3% combined
lodging and sales
Yes NO Studio units have an occupancy of
two plus one. All STR units with
one or more bedrooms have an
occupancy of two plus two per
bedroom. Bunkrooms count as
two occupants per bedroom
regardless of the number of
pillows.
No limits on STR-C permits. STR-
OO permits are limited to 120
nights per year.
Defined as: a natural person who
is legally designated on the permit
application by the permittee.
Must live in the Roaring Fork River
Drainage area and within 2 hours
drive
2 hour reponse to emergency
calls and 24 hour response to non-
emergency calls.
Yes.1,174
Avon
Yes Yes Yes, non-
transferrable
Yes- Traditional (Full) licenses
capped at 15% of dwelling units
per property within the portion of
the STR Overlay District that is not
included in Town Core. Total
number of licenses in the Town is
NOT capped
No 1 Bedroom -
$350 / 2
Bedroom - $400
/ 3 Bedroom -
$450 / 4
Bedroom - $500
/ Resident-
Occupied
license - $150 /
Front Desk
$250 plus
$25/bedroom
used as STR
No 4% sales tax, 4%
accommodation tax,
2% STR Tax for
Community Housing
Yes- Traditional (Full)
licenses capped at 15% of
dwelling units per property
within the portion of the
STR Overlay District that is
not included in Town Core
Short-Term Overlay District -
primarily town core
Yes - Maximum occupancy
formula is (# of bedrooms * 2 + 2)
Avon offers a Limited License that
limits nights of rental to 42 nights
per year however, this license
type is rare. This license-type
offers individuals who own
property where a traditional
license (STR-Full) license is no
longer available because of the
15% cap by property
Yes Yes - 4 hours No 336
Blue River
Yes Yes Yes No No $300 annually No 12.275% (includes
3.4% lodging tax)
no no 2 people per bedroom plus 2 no; STRs must rent at least 10
days per year to maintain a
license
no no No 220
Breckenridge
Yes Yes Yes Yes. Four zones:
Resort Zone: 1816
Zone 1: 1680
Zone 2: 130
Zone 3: 390
No $75-$175
license tax plus
a regulatory fee
of $756 per
bedroom
Yes Sales 2.4%,
Accomodations 3.5%
Yes. Four zones:
Resort Zone: 1816
Zone 1: 1680
Zone 2: 130
Zone 3: 390
Yes Yes. 2 per bedroom + 4 for the
entire property
Only on owner occupied units - 21
days a year
Responsible agent has to be
available by phone
60 minutes No 4198 - October
2024
Crested Butte
Yes Yes - with limits Yes There are no limits to the number
of Primary Occupancy licenses.
Unlimited licenses are limited by
Blockface in allowed zone districts
(R1, R1A, R1C, R1D, R1E, R2, R2C,
R3C, B3, B4). For Blockfaces
smaller in length than two
hundred (200) linear feet, a
maximum of one (1) unlimited
license will be allowed. For Block
Faces 200—400 linear feet long, a
maximum of two (2) unlimited
licenses will be allowed. This
theoretically limits unlimited
licenses to 198 units.
Yes - No more than one (1) license
may be held by any owner.
$250 for
Primary
Occupancy
license. $800
for Unlimited
license.
Yes 9.4% total sales tax
(Town, County, State,
RTA), 4% local
marketing district,
7.5% vacation rental
excise tax = total tax
rate of 20.9%
Yes, Unlimited licenses are
limited by Block Face in
allowed zone districts (R1,
R1A, R1C, R1D, R1E, R2,
R2C, R3C, B3, B4). For Block
Faces smaller in length
than two hundred (200)
linear feet, a maximum of
one (1) unlimited license
will be allowed. For Block
Faces 200—400 linear feet
long, a maximum of two (2)
unlimited licenses will be
allowed.
No zoning limits for primary
resident license. Unlimited licenses
are restrctected to the following
zone districts (R1, R1A, R1C, R1D,
R1E, R2, R2C, R3C, B3, B4).
Yes, two person per bedroom plus
two additional occupants
Primary residence vacation rental
licenses are limited to no more
than 90 nights per calendar year.
Yes Must be able to respond within 1
hour.
Yes. 190 unlimited
vacation rental
licenses currently.
In Theory upto
198 unlimited
licences can be
issued. 11 Primary
residence
vacation rental
licenses have
been issued.
Attachment B
115
Short-Term Rental Ordinance Matrix
Colorado Association of Ski Towns-May 2023, Updated October 2024 by Vail Staff
Agency Allowed in
Primary
Residence?
Allowed in Non-
Primary
Residence?
License
Required?
Limit # licenses issued?Limit # of licenses issued per
person?
License Fee
($)
Done a Fee
Study?
Which Taxes
Required?
(lodging, STR,
excise, etc.) Note
%
Concentration Limits?
(i.e. # allowed per
block or zone)
Zoning Limitations? (i.e. STRS
only allowed in certain
zones.)
Occupancy Limits? Limits on # of nights per
year?
Require a “local responsible
party” to take complaints?
Mandatory response time
for the responsible party to
address complaints?
Use/have used
moratoriums?
Number of STR
licenses issued
Denver
Yes No Yes No Yes - Must be primary residence,
only 1 primary residence allowed
per person
Application Fee
= $50
Annual License
Fee = $100
Yes Lodger’s Tax = 10.75%
Occupational
Privilege Tax =
$48/year
Business Personal
Property Tax is
assessed on assets
used in conducting
business in Denver.
The tax rate is
calculated on the
established value of
the personal
property.
No No, except that STRs are limited to
residential structures. If structure is
properly zoned/permitted, it may
be licensed as an STR.
No No Yes - Primary Resident/Host or
"local responsible party" when
Host is out-of-town.
No No Approx. # of
currently active
STR licenses =
2,316
Dillon
YES YES YES NO NO STR LICENSE
FEE - $700, NO
PARKING
PERMITS
ALLOWED FOR
STR GUESTS
YES SALES, LODGING &
EXCISE TAXES
No No Occupancy based on # of
bedrooms (per County assessor
records) x 2 occupants + 2 per
property. Ex) 2 bedroom property
has maximum occup. of 6 guests
No Yes 60 minutes No 315
Durango
Yes Yes Yes Yes No $750 permit
fee, annual
business license
fee
No Lodging, Sales yes- 1 per block face in
eligible single family zones
Yes. Only allowed in 2 single family
zones and in mixed-use zones
yes, based on # of bedrooms and
parking
In most circumstances, no yes yes No 125
Eagle County
n/a n/a Draft Ordinance
written, July 2024
Estes Park
Yes Yes Yes Yes for residentially zoned (322)
No for commercially zoned
No $200 base fee
$50 per
bedroom per
Assessors, plus
$1,430
workforce
housing
regulartory
linkage fee
(adjusted
annually for
inflation)
Yes to establish
a workforce
housing
regulatory
linkage fee:
https://cms3.re
vize.com/revize
/summitcoco/D
ocuments/Servi
ces/Community
%20Developme
nt/Short%20Ter
m%20Rentals/E
stes%20Park%2
0Study_Root%2
0Policy%20Full
%20Report.pdf
2% Local Marketing
District Tax
Vacation home
workforce housing
regulatory linkage fee
$1390 annual adj by
CPI
No Allowed in all zoning districts
except Office, Commercial Heavy
and Industry zoning districts
Yes - 2 per bedroom plus 2 up to 8
unless a large vacation home
application has been approved
(still limited to 2 per bedroom
plus 2; i.e. 5 bedrooms allows 12
occupany with approval of large
vacation home application)
No Yes Yes - 30 minutes Yes - moratorium on the
Town's residential
waiting list
As of October 2021
residential properties
licensed are no longer
transferable to a new
owner
471 with 322
residential
116
Short-Term Rental Ordinance Matrix
Colorado Association of Ski Towns-May 2023, Updated October 2024 by Vail Staff
Agency Allowed in
Primary
Residence?
Allowed in Non-
Primary
Residence?
License
Required?
Limit # licenses issued?Limit # of licenses issued per
person?
License Fee
($)
Done a Fee
Study?
Which Taxes
Required?
(lodging, STR,
excise, etc.) Note
%
Concentration Limits?
(i.e. # allowed per
block or zone)
Zoning Limitations? (i.e. STRS
only allowed in certain
zones.)
Occupancy Limits? Limits on # of nights per
year?
Require a “local responsible
party” to take complaints?
Mandatory response time
for the responsible party to
address complaints?
Use/have used
moratoriums?
Number of STR
licenses issued
Fraser
yes yes yes no no $150/for STR
application fee
plus $40 for STR
Operating
License plus
$250/bedroom
for Permit fee.
Permit fee
increases to
$350/bedroom
Oct 1, 2025
in house, yes Colorado State Tax
2.9% + Grand County
Sales Tax 1.3% +
Grand County Lodging
Tax 1.8% + Fraser
Town Sales Tax 5%
which equals 11%
no no no no yes yes, one hour no 273
Frisco
Yes Yes Yes Yes, 25% of Housing Stock,
maximum of 900 STR licenses
No $250 annually Yes, but only to
cover program /
license costs
Total: 15.725%: CO
State Sales Tax: 2.9%;
SC Sales Tax: 2.0%; SC
Mass Transit Tax:
.75%; SC Special
District Tax: .725%;
Frisco Lodging: 2.35%;
Frisco Sales: 2%; STR
Excise: 5%
No No Yes; 2 people per bedroom plus 4 No Yes Yes - 60 mins No 900
Glenwood Springs
YES YES YES YES NO $600 New STR,
$400 Renewal
Biannual
No formal study
but increased
fees to cover
program costs
on 6/2023
Lodging + Sales Cannot be within 250' of
another existng permit
No Set on Building inspection per
limits of property maintenance
code
NO YES NO NO 99 Total, 88 STR,
11 ATR (Accessory
Tourist Rentals)
Granby
No Yes Permit Required No No One-time $100
applic. fee then
annual permit
fee of $728 per
bedroom
Yes Sales, impact fee
which falls under
broad definition of
local lodging tax
No, but workimg on it Yes # Bedrooms x2 plus 4 No Yes Yes No 350
Grand County
Yes Yes Yes No limit No limit $100/per
occupant
No 1.8% lodging tax No limit No limitations 16 people maximum for any
dwelling. Maximum occupancy
further limited depending of
septic design
No limits 2 emergency contacts required 1 hour required response time None 949
Jackson, WY
Yes No Yes No Each residence(not ARUs) is
allowed 3 STRs per year
$517/br plus
business license
fee
No Lodging 4%No No No 60 Yes No No 210 in commercial
areas; will have to
see how many in
residential areas
with new program
Ketchum, ID
Yes Yes Yes No No $504 Lodging No Yes Yes Must be at least 2 nights a year Yes, within 20 vehicular miles of
the city limits
Yes No Unknown
117
Short-Term Rental Ordinance Matrix
Colorado Association of Ski Towns-May 2023, Updated October 2024 by Vail Staff
Agency Allowed in
Primary
Residence?
Allowed in Non-
Primary
Residence?
License
Required?
Limit # licenses issued?Limit # of licenses issued per
person?
License Fee
($)
Done a Fee
Study?
Which Taxes
Required?
(lodging, STR,
excise, etc.) Note
%
Concentration Limits?
(i.e. # allowed per
block or zone)
Zoning Limitations? (i.e. STRS
only allowed in certain
zones.)
Occupancy Limits? Limits on # of nights per
year?
Require a “local responsible
party” to take complaints?
Mandatory response time
for the responsible party to
address complaints?
Use/have used
moratoriums?
Number of STR
licenses issued
Keystone, CO
Yes Yes Yes No No $285 STR No No, all Keystone considered Resort
Overlay Zone
2 per bedroom + 4 or 1 person
per 200 square fee of living area
No Yes No
Leadville
Yes Yes- with a cap Yes Yes- more than 2 requires a land
use application for multi licenses
to be allowed and then subject to
the cap
No $325 per
license wither
Class 1 (owner
occupied) or
class 2 (non-
owner
occupied)
County did a
housing needs
assessment
which was the
basis for code
changes
Local Leadville (city
prope)
Accommodations Tax
4.92%, State Sales Tax
NO No 2 per room and 2 extra total No Yes Yes No 171
Mammoth Lakes, CA
Yes - Some zoning
limits
Yes - Some zoning
limits
yes No no $65 application
fee, $5-$30
planning review
fee, due for
initial
certification.
$13 annual
renewal fee
Not recently Transient Occupancy
Tax 13%, TBID 1%
No Yes Yes - Two per bedroom plus two no Yes - 24 hour emergency contact
required
60 minutes We are considering due
to impacts to local
housing.
3,376
Moab, UT
Yes Yes Yes Capped at existing units in 2019 No Nightly rentals,
3 units or less
$116.00
renewal
$26.00 Nightly
rental, more
than 3 units
$145.00
renewal
$26.00
no General sales 8.85%,
County Transient
Room 4.25%, State
TRT 0.32%, Muni TRT
1.5%, totol 14.92%
No Yes, only some commercial zones Yes, 10, unless approved by fire
chief
Yes, 30/party No 60 minutes Used at time of cap
adoption. "moratoriums"
in Utah are limited to 6
months while permanent
zoning language is
adopted. Moratorium as
used here might be
considererd to be
ongoing, as we're not
allowing any more STRs.
Mono County, CA Yes - Some zoning
limits
Yes - Some zoning
limits
yes - two
approvals req'd
yes - in certain areas yes - 1 per person hourly rate for
Use Permit and
Short-Term
yes TOT, HMO yes - in certain areas yes Yes - Two per bedroom plus two
up to 10 max
no Yes - 24 hour emergency contact
required
60 minutes yes
Mountain Village
Yes Yes Yes No No $165 + $22 per
sleeping room
Sales tax 4.5, lodging
tax 4.0 total 8.5%
No No No No No No No 619 as of 6/2023
Mt. Crested Butte
Yes Yes Yes No No $350 for new
and $300 for
renewal
Compared fees
vs costs, maybe
lowering the
current fee but
still TBD
MTCB sales tax - 5%,
MTCB Excise Tax -
2.9%
No No No No Yes, within 45 minutes of town Yes No 668
Ouray
Yes Yes Yes Yes, 120 No Yes (new
license fee:
$750;
annual renewal
fee: $350)
No - compared
fees with
GNAR's STR
data from April
2021
3.5% Lodging/15%
Excise/7.75% Sales
None Yes, no R-1 (low-density residential
zone)
maximum: 2 persons per
bedroom + 2 additional
30 days rented per year as a
Minimum
Yes and responsible party must be
within 45 minutes drive time
No No 100
118
Short-Term Rental Ordinance Matrix
Colorado Association of Ski Towns-May 2023, Updated October 2024 by Vail Staff
Agency Allowed in
Primary
Residence?
Allowed in Non-
Primary
Residence?
License
Required?
Limit # licenses issued?Limit # of licenses issued per
person?
License Fee
($)
Done a Fee
Study?
Which Taxes
Required?
(lodging, STR,
excise, etc.) Note
%
Concentration Limits?
(i.e. # allowed per
block or zone)
Zoning Limitations? (i.e. STRS
only allowed in certain
zones.)
Occupancy Limits? Limits on # of nights per
year?
Require a “local responsible
party” to take complaints?
Mandatory response time
for the responsible party to
address complaints?
Use/have used
moratoriums?
Number of STR
licenses issued
Park City, UT
yes yes yes no no $166 +
$29.74/BR
Waiting for a
response
13.37 % total
(3%County
TRT;.32%State TRT;
1% City TRT; 1% City
Sales; .25% County
Sales; 4.85 %State;
.25 County Transpo
Option; .25 County
Transp Infras.; .30
County Mass Transit;
.25 County Add. Mass
Transit; 1.6 City
Resort Tax; .10 Utah
ZooArtPark.
no yes, Prohibited in most Single
Family Zoned areas (which are
limited); and in a handful of Resort
Zoned subdivisions by CCR's, but
reinfored in Code
no no yes yes. 20 mins no 2400
Routt County
NO NO STRs not allowed
except in
commercial areas
or where a permit
has been issued
(B&B or guest
ranch)
Salida
YES YES YES 66 (75%) - Residential Zones , 99
(70%) - C/2 Historic District, 71
(25%) - Hwy 291 Corridor, 16
(35%) - Industrial Corridor, 46
(70%) - Hwy 50 Corridor
1 per person or Business Entity $1,000 annual
fee plus $200
one-time up-
front for admin
review
Yes Occupational Lodging
Tax
1 Per block in residential
zones
There are no specific zoning
limitations but there is an
Administrative Review for STRs in
all zones.
Yes, determined on size, number
of bedrooms etc.
In residential zones there is a max
185 nights that can be rented.
Yes NA Yes Currently 225 STR
units in Salida
Silverthorne
Yes Yes Yes Yes. Most of the Town is limited
to Zone 1, which allows 10% of
built units to have an STR license.
In the Town Core, Zone 2, it is
limited to 50% of built units. In
total, approximately 741 STRs will
be permitted.
No Yes. Studio
–$150; 1
Bedroom -
$200; 2
Bedrooms
–$250; 3
Bedrooms
–$300; 4
Bedrooms
–$350; 5
bedrooms –
$450; 6+
bedrooms –
$500
No Sales and Lodging for
Town of Silverthorne.
Sales for State of
Colorado, Summit
County, Summit
County Transit Tax,
Summit Combed
Housing Authority
No No Yes No Yes Yes No 344
Snowmass Village
Yes.Yes.Yes.No.No.$300 for STR
Permit per year,
$85 Business
License Fee per
year.
No.Loding 2.4% Sales Tax
3.5%.
No.No.Yes on Permit type 3&4.. 2 per
bedroom + 4 for the entire
property. Children under 5 are
not counted.
Yes on permit type 4. The
minimum stay is 4 nights.
Yes.Yes. The local contact needs to
respond within the hour.
No.517
Steamboat Springs
yes yes Yes Unlimited in Overlay Zone A;
Overlay Zone B has 6 subzones
with caps
no $250 no Sales and lodging
taxes + 9% STR excise
tax
No STR Overlay Zones yes Yes, for Temporary STR Licenses
only
yes Yes yes, while overlay zone
was being drafted
~3000 total STRs
(still issuing first
round of licenses)
119
Short-Term Rental Ordinance Matrix
Colorado Association of Ski Towns-May 2023, Updated October 2024 by Vail Staff
Agency Allowed in
Primary
Residence?
Allowed in Non-
Primary
Residence?
License
Required?
Limit # licenses issued?Limit # of licenses issued per
person?
License Fee
($)
Done a Fee
Study?
Which Taxes
Required?
(lodging, STR,
excise, etc.) Note
%
Concentration Limits?
(i.e. # allowed per
block or zone)
Zoning Limitations? (i.e. STRS
only allowed in certain
zones.)
Occupancy Limits? Limits on # of nights per
year?
Require a “local responsible
party” to take complaints?
Mandatory response time
for the responsible party to
address complaints?
Use/have used
moratoriums?
Number of STR
licenses issued
Summit County
Yes Yes Yes Unlimited in the Resort Overlay
Zone. Capped number of licenses
in the Neighborhood Overlay
Zone. Numbers vary based on
basin location.
No Yes, depends on
license type.
Resort Overlay
Zone = $280
Neighborhood
Zones:
Type I = $225;
Type II = $340
No but might in
the future if
there are
changes in
regulation
Sales tax = 6.375%
collected by State.
Summit County
recieves 2% of this.
Also new this year is
the 2% lodging tax in
addition to the sales
tax
In the NOZ only: Lower
Blue Basin is capped at 550.
Upper Blue Basin is capped
at 590. Snake River Basin is
capped at 130. Ten Mile
Basin is capped at 20.
Yes, only allowed in residential
zone districts.
Yes, 2 guests per bedroom plus 2
additional guests, unless further
restricted by On-Site Wastewater
System.
No annual limit if property is
within the Resort Overlay Zone.
Within the Neighborhood Zone
there is a 35 booking limit per
year for each STR but no nightly
limit.
Not required to be local but
responsible party must respond
within 1 hour of receiving a
complaint.
Yes, 1 hour.Yes, County called a 90
day moritorium in 2021
to allow time to revise
STR regs and ordinance.
4,614 Licenses
Telluride
yes yes yes, non-
transferrable
Limted to 750 licenses until 11/23,
no longer limited
No more than 2 per owner/entity Classic license:
$288
administrative
fee plus 40%
regulatory fee
at $857 per
bedroom
yes (March -
July 2023)
Lodging, STR tax,
excise
no no; however, different license
types are required based on
residential and non-residential zone
and number of nights per year
Per Self-Inspection Checklist that
affirms basic life and safety
standards are met
For Residential STR License (in
Residential Zone) limited to 29
cumulative nights per calendar
year; For Limited STR License
limited to 29 cumulative nights
per calendar year, Classic and
Lodging Establishment no limits
and no zoning limitations
yes not specified in Code; however,
owner representative is on call
full-time to manage an STR
no 750
Teton County, WY
Yes Yes No, but STRs only
allowed in certain
locations
Vail
Yes Yes Yes No No $50 for onsite
professionally
managed units;
$260 for all
others
Yes Sales Tax, Local
Marketing District Tax
No No 2 per bedroom + 2 No Yes 30 minutes between 11PM and
7AM; 60 minutes all other times
No 2,454
Winter Park
Yes Yes Yes No No $150 No - antipacting
in near future
4% Sales Tax, 1%
Accommodation Tax,
2% Transit & Trails
Tax
No No Safety Requirements list
complying with fire and building
code
No Yes 60 Minutes No 1,200
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ORDINANCE NO. 24
SERIES 2024
AN ORDINANCE AMENDING CHAPTER 4-14 OF THE VAIL TOWN
CODE TO ESTABLISH IMPACT FEES FOR SHORT-TERM RENTALS
WHEREAS, the Town commissioned a study, conducted by Economic and
Planning Systems Inc., to evaluate whether short-term rentals ("STRs") create an impact
on the Town's demand for housing (the "Study");
WHEREAS, the Study concluded that STRs play a significant role in creating a
demand for housing;
WHEREAS, the Study used economic impact techniques to quantify the
relationships between guest spending when staying in STRs and the number of jobs and
employee-households supported in the local economy by that spending;
WHEREAS, the Study found that many of the jobs created by STRs are at wage
levels that do not pay enough for employees to afford market rate housing in the Town;
WHEREAS, the Town Council wishes to impose an impact fee on STRs, in
accordance with the Study, to fill the gap between what employees can afford and the
costs of housing in the Town; and
WHEREAS, consistent with Colorado Union of Taxpayers Foundation v. City of
Aspen, 418 P.3d 506 (Colo. 2018), the fee imposed by the Town under this Section is
collected from the STR licensees for the primary purpose of defraying the costs of housing
for the local workforce essential to the tourism economy that benefits the STR licensees.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF VAIL, COLORADO, THAT:
Section 1.Section 4-14-1 of the Vail Town Code is hereby repealed in its
entirety and replaced as follows:
§ 4-14-1 PURPOSE AND APPLICABILITY.
(A)The purpose of this Chapter is to:
(1)Establish a comprehensive licensing program to safeguard
the public health, safety, and welfare by regulating the use, occupancy,
location, and maintenance of STRs in the Town.
(2)Protect the public health, safety, and welfare by establishing
a STR impact fee that will reduce the impacts caused by STRs on workforce
housing in the Town.
(3)Benefit STR licensees by supporting housing policies and
programs for the local workforce that support the Town's economy.
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(4)Address secondary impacts caused by the STR industry by
protecting the character of the local community.
(5)Ensure that the amount of the fee bears a reasonable
relationship to the impacts created by STRs as demonstrated in a study for
the same.
(B)This Chapter shall apply to all STRs in the Town. This Chapter shall
not supersede or affect any private conditions, covenants, or restrictions
applicable to STRs.
Section 2.Section 4-14-9 of the Vail Town Code is hereby renumbered as
Section 4-14-10.
Section 3.Chapter 14 of Title 4 of the Vail Town Code is amended by the
addition of the following new Section 4-14-9:
§ 4-14-9 ANNUAL SHORT-TERM RENTAL IMPACT FEE.
(A)Fee:
(1)For each new or renewal STR license issued on or after
________ (date), the STR license shall be subject to an annual impact fee
of ____ dollars ($____) per bedroom.
(2)For an STR that is the applicant's principal place of residence
and rented for less than thirty (30) days total in a license term, no impact
fee shall be due. To exercise this impact fee exemption, the applicant shall
submit a signed affidavit, under penalty of perjury, on a form provided by
the Town.
(3)No STR license shall be issued until the applicable STR
impact fee has been received by the Town.
(B)Bedroom Calculation:
(1)The number of bedrooms shall be calculated as the greater
of:
(a)The number of bedrooms for the STR as listed in the records
of the Eagle County Assessor; or
(b)The number of rooms in the STR with designated sleeping
areas, as stated by the applicant or as stated in the advertisement
for the STR.
(2)Studios shall be counted as one (1) bedroom.
(C)Impact Fee Fund: All STR impact fee funds collected by the Town shall be
separately accounted and be used to defray the costs of:
(1)Promoting workforce housing in the Town; and
(2)Administering and enforcing this Chapter.
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Section 4.Section 4-14-5(B) of the Vail Town Code is amended by the addition
of a new subsection 4, to read as follows:
§ 4-14-5 HEALTH AND SAFETY STANDARDS.
***
(4)For each STR inspection that was requested, but the licensee failed
to allow the inspection when scheduled, there shall be a fee of $___, which
shall be paid to the Town prior to rescheduling such inspection.
Section 5.If any part, section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid, such decision shall not effect the validity of
the remaining portions of this ordinance; and the Town Council hereby declares it would
have passed this ordinance, and each part, section, subsection, sentence, clause or
phrase thereof, regardless of the fact that any one or more parts, sections, subsections,
sentences, clauses or phrases be declared invalid.
Section 6.The Town Council hereby finds, determines and declares that this
ordinance is necessary and proper for the health, safety and welfare of the Town and the
inhabitants thereof.
Section 7.The amendment of any provision of the Vail Town Code as provided
in this ordinance shall not affect any right which has accrued, any duty imposed, any
violation that occurred prior to the effective date hereof, any prosecution commenced, nor
any other action or proceeding as commenced under or by virtue of the provision
amended. The amendment of any provision hereby shall not revive any provision or any
ordinance previously repealed or superseded unless expressly stated herein.
Section 8.All bylaws, orders, resolutions and ordinances, or parts thereof,
inconsistent herewith are repealed to the extent only of such inconsistency. This repealer
shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof,
theretofore repealed.
INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED
PUBLISHED ONCE IN FULL ON FIRST READING this 17th day of December, 2024 and
a public hearing for second reading of this Ordinance set for the _____day of
______________, 2025, in the Council Chambers of the Vail Municipal Building, Vail,
Colorado.
_____________________________
Travis Coggin, Mayor
ATTEST:
____________________________
Stephanie Kaufmann, Town Clerk
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READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED
this ___ day of ______________, 2025.
_____________________________
Travis Coggin, Mayor
ATTEST:
____________________________
Stephanie Kauffman, Town Clerk
124
Short Term Rental Ordinance
December 17th, 2024
125
Town Council | Finance |
Council STR Goals
What is Council’s Goal?
Council’s goal is to have short-term rentals contribute financially to
the community's employee housing gap with fees to generate funds
for community housing. This is supported by a nexus study
completed in 2022.
Council supported an annual fee between $1,000- $2,000 per bedroom
126
Town Council | Finance |
Licensed STR Properties
*171 or 6.6% increase in STR licenses since 2022. 103 of those are within
the village core and 68 are outside the village core
Included with your memo is a detail of STRs by location and building
127
Town Council | Finance |
2022 STR Economic Nexus Study- EPS
2,673 Employees3,208 Jobs 1,445 Employee Households
Spending from guests at 1,000 STRs
128
Town Council | Finance |
2022 STR Economic Nexus Study- EPS
$404.4K or $5,912/
per bedroom
1,426 Household
Income (below
200%)
Market Rate Housing in
Vail (200% AMI)
129
Town Council | Finance |
Fee
Per Designated Sleeping Area Fee
Current Fee Per
Property (Admin
Fee)
$1,000 $1,500 $2,000
24/7 Onsite
Management Fee $50 $1,000 $1,500 $2,000
Off-Site
Management Fee $260 $1,000 $1,500 $2,000
Total Estimated
Revenue
$440,805 (2023)$6,034,000 $9,052,000 $12,069,000
*Staff recommends also maintaining the current administrative/licensing fee
130
Peer Communities
700
260
288
300
125
100
800
750
700
544
400
285
250
209
3600
4000
1714
1390
1512
1456
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500
Pagosa Springs
Vail ($2,000)
Telluride
Estes Park
Breckenridge
Granby
Crested Butte
Ouray
Dillon
Aspen
Avon
Mt Crested Butte
Steamboat
Mountain Village
Axis Title
Total annual fees for a 2-bedroom STR
STR License Fee STR Regulatory Fee
Town Council | Finance |
131
Peer Communities
15.0%
10.0%
9.0%
7.5%
6.0%
5.0%
5.0%
2.9%
2.5%
2.0%
0.0%
0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%
Ouray
Aspen
Steamboat
Crested Butte
Carbondale
Frisco
Dillon
Mt Crested Butte
Telluride
Avon
Vail
Excise Taxes on STR Stays
Town Council | Finance |
132
Peer Communities Comparison
Example Comparison: Two-bedroom STR for $200/night @ 65%
Occupancy
Vail Annual Fee Comparison
$1,000/bedroom $1,500/bedroom $2,000/bedroom
Total Annual Fees/Taxes Paid for two-bedroom STR
Aspen 9,874 9,874 9,874
Steamboat 8,782 8,782 8,782
Crested Butte 7,910 7,910 7,910
Telluride 4,372 4,372 4,372
Vail 2,260 3,260 4,260
Estes Park 1,730 1,730 1,730
Breckenridge 1,687 1,687 1,687
Town Council | Finance |
133
Town Council | Finance |
Housing Projects
An increase in STR fees would go towards community housing
projects, programs and initiatives.
•Purchase of new Timber Ridge Units: $25M
•West Middle Creek- 268 rental units: $161M
•Development of East Vail CDOT Parcel
•Vail InDeed program enhancements
•Partner with other communities and organizations towards
down valley projects such as Eagle-Vail parcel development
•Add environmental efficiencies to current and future housing
projects (20% price increase)
•More subsidies of current and future housing projects to be
closer to 100% AMI affordability
134
Town Council | Finance |
VEAC/Condotel Feedback
•Increased Fee could be ADR tipping point
•Condotels were purpose-built and a new fee seems inequitable
to hotels
•Lodging Tax would be a fairer approach
•Impacts to condotels would vary due to how they are operated
•Lack of awareness about change in the community
•New STR fee may be premature with a new housing assessment
coming soon
•The new fee would impact primary residents who rent during
certain times of year to offset mortgage
135
Town Council | Finance |
Other Considerations
•Primary Residences:
•The draft ordinance includes an exemption from the new fee
for primary residences that have cumulative rental days that
do not exceed 30 days.
•New Renewal Date:
•Due to the software modifications required by the fee
change, it is not feasible for the new fee to take effect by the
annual renewal deadline of February 28. Staff recommends a
new STR renewal date later in the year.
136
Town Council | Finance | 5/7/2024
COUNCIL DIRECTION
• What fee amount would Council like
to include in tonight’s ordinance?
• Does Council agree with a primary
residences expansion?
• Does Council agree to a new annual
renewal date?
• Does the Council have any
additional feedback before the 1st
reading of the ordinance is
presented this evening?
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From:Claire Alexander
To:PublicInputTownCouncil
Subject:Housing
Date:Tuesday, December 17, 2024 11:21:25 AM
I love Vail. I moved here to chase my career in the USFS — I got my dream job. However
housing prices were so high I had to quit. The market is saturated with short term rentals it’s
near impossible to find somewhere to move that isn't sublet. I have to sublet over and over
again winter to summer.
Town of Vail is so special to me and it’s my dream to raise kids here in this community. I
think $6000 per bedroom is fair and will allow more long term rentals.
Claire Alexander
6 years in Vail
Fall Line Kitchens and Cocktails
Shakedown bar
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From:don martin
To:Council Dist List
Subject:increase in short term rentals- opposition
Date:Tuesday, December 17, 2024 12:55:29 PM
The proposed fee increase to our short-term rental in the Vail Racquet Club is
simply not sustainable. We will likely need to sell our unit, as it has become
increasing difficult to break even with all the fees and taxes involved. We would
greatly appreciate your consideration to keep the short term fees fixed, or
commensurate with cost of living increases. I fear such a drastic increase will result
in expensive litigation and would be a zero sum outcome. Really appreciate your
consideration to keep ST fees fixed. Thanks, Don Martin VRC owner.
Don R. Martin, Bloomin President
3080 Valmont Road Boulder, CO 80301
O: 303-443-3591 x 105 M: 303-522-1531
www.bloominpromotions.com www.bloomin.com
263
From:David Littman
To:Council Dist List
Subject:Please vote against Ordinance 24
Date:Tuesday, December 17, 2024 1:02:51 PM
Dear Vail Town Council (via email towncouncil@vail.gov):
I am writing to comment on the proposed dramatic increase in short term rental fees that would
occur if Ordinance 24 were to pass. My wife and I have owned a unit (Building 7, Unit 10) at the Vail
Racquet Club since 1995. We rent it as part of the Vail Racquet Club’s short-term rental program.
Because we enjoy spending time in our Vail home and being a part of the community, we are not
willing or able to rent our home on a longer-term basis. The large fee increase you are considering
would cause us to re-evaluate offering our home for vacation rentals, as even now revenue is
supplementary and covers only a small percentage of our overall costs of ownership. Short term
rental units are an important segment of the Vail economy. Passing this Ordinance would be
detrimental to short term rental owners and may result in negative impacts to Vail’s rental inventory
and sales tax collections. We urge you to vote no on the proposed Ordinance and to instead
consider other more balanced approaches if additional funds are needed to support affordable
housing initiatives. To be absolutely clear, we support housing at a reasonable cost for both
residents and workers in the Vail Valley and are open to exploring ways in which we can create
better and lower cost housing. Vail has been a wonderful place for us to have a part time home and
we would like to see many others have similar opportunities.
Sincerely,
David Littman &
Suzanne Wiggins
David Littman & Suzanne Wiggins
David Littman, Esq.
Littman Family Law & Mediation Services
LFL is celebrating 42+ years!
1772 N. Emerson Street
Denver, CO 80218
Tel. - 303-832-4200
Fax - 303-832-9322
Family Law, Collaborative Law, Mediation & Arbitration, ENA,
Decision Maker (PCDM) and Child Legal Representation (CLR)
David@LittmanFamilyLaw.com
www.littmanfamilylaw.com
Littman Family Law & Mediation Services remains open to all clients both in existing matters
and for any new matters. Our staff is currently working partially from home and part-time in
the office. We remain available via telephone, Zoom and email with scheduled Zoom and
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telephone conferences readily available through our paralegals, Andrew and Gerry. Please
don’t hesitate to reach out to us and let us know how we can best serve you.
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From:Greg Grotke
To:Council Dist List
Cc:Kim Rediker
Subject:Proposed STR Fee and Tax Increase?
Date:Tuesday, December 17, 2024 11:19:20 AM
Vail Town Council,
My wife and I were fortunate enough to diversify some retirement savings and put a down
payment on a 1br/1ba condo at Vail Racquet Club just over 10 years ago. It was a gold-rated
short-term rental at the time. With local Town of Vail permitting/bldg dept and VRC
guidance, we remodeled the unit to Platinum a few years ago. The STR revenue is necessary
for us to cover some of the current high ownership costs in Vail, and the proposed Ordinance
24 is very concerning. Because our remodeled STR unit has some nicer features than our
primary residence, we would not consider converting it to long-term employee housing. If
Ordinance 24 passes, we must reconsider how to manage this retirement investment.
In 2015, my corporate position was eliminated, so I've been an independent consultant for
almost 10 years. My wife is a teacher in JeffCo schools. In 2016 I picked up some substitute
teaching days and returned to Keystone as a part-time instructor. We've considered partial
retirement or moving to Vail and working part-time in the community. Ironically, a few people
recently asked me, "You still teach at Keystone? That seems like a long distance from your
condo in Vail." My canned and brutally honest response is, "I can't afford to stay at my condo
in Vail".
I'm sure everyone on the Town of Vail Council understands when I share that the STR
revenue from the holiday season, MLK and President's Day weekends, and spring break help
our retirement dreams remain a possibility. My wife and I have discussed selling our house
someday and having two condos to split time during retirement. Ideally, Vail and
Grand Haven, MI are the communities where we will retire.
As a State of Colorado certified firefighter for the past 15 years, I've also volunteered in the
front range, along I-70, and with a few other volunteers who are career firefighters in Vail.
Over the past 10+ years, my wife and I have met many people in Vail and have begun to feel
like we are becoming a part of the Town of Vail community. At VRC, Matt Ivy's past
leadership and Kim Rediker's current leadership have provided an amazing balance of second
homes, long-term rentals for local employees, and STR income for people like me and my
wife who dream of a time when we can join you all more often than just 10 to 20 days a year,
mainly during the off-seasons.
Based on the data shared in the Ordinance 24 memo today, Aspen and Jackson, WY, are a
couple of mountain towns and ski destinations that implemented modest increases. The current
proposed fees and tax increase of $1000 to $2000 per bedroom and an additional $1000 per
sleeping area in Vail is extreme!
Marriott just built a Residence Inn and those STRs include 1br, 2br and 3br units, yet they
seem to be exempt from this STR fee and tax increase. Vail Resorts also manages numerous
properties that are likely also exempt from this fee and tax increase. Marriott, Hilton, Vail, and
other corporations can write off investments, report losses, and avoid taxes. At the same time,
the Town of Vail and even the State of Colorado are considering ways to increase fees and
taxes on local residential property owners extremely fast without much thought of the
266
consequences for the local community. The local and state governing agencies seem to
misunderstand the accounting and financing behind personal property and corporate business
taxes based on increased regulations proposed on individuals owning a single rental property.
The current proposal's unintended consequences will hurt the community and local employees
much more than a more balanced approach to supporting and funding more affordable
housing. I urge you to vote no on Ordinance 24 because it is too targeted and extremely
detrimental to the Vail community's future as a local mountain town or becoming a corporate
Disneyland. Today, you all are deciding which path the Town of Vail will take.
While this is a very personal e-mail, I'm sure many other Town of Vail STR owners in
Colorado and across the U.S. could share similar stories and dreams. Please Vote No on
Ordinance 24 and consider a more balanced approach to more affordable housing in Vail and
across Eagle County.
Sincerely,
Greg
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From:David Thomson
To:Council Dist List
Cc:Caroline Fisher
Subject:Short Term rental fees
Date:Tuesday, December 17, 2024 2:51:59 PM
Dear Vail Town Council (via email towncouncil@vail.gov),
I have been in Vail since 1973 and this initiative is counter intuitive in creating a vibrant
and thriving community. Vail continues to push these sorts of behaviors and eliminate access
to the people of Colorado to enjoy such a nice town by creating ridiculous regulatory fees that
don't allow an average income producing family to visit our community.
I am writing to comment on the dramatic increase in STR fees proposed with Ordinance 24. I
own a unit at the Vail Racquet Club and rent it as part of the Vail Racquet Club’s short-term
rental program. Because I enjoy spending time in my Vail home and being a part of the
community, I am not able to rent my home on a longer-term basis. The large fee increase you
are considering would cause me to re-evaluate offering my home for vacation rentals, as even
now revenue is supplementary and covers only a small percentage of my overall costs of
ownership. STR units are an important segment of the Vail economy. Passing this Ordinance
would be detrimental to STR owners and may result in negative impacts to Vail’s rental
inventory and sales tax collections. I urge you to vote no on the proposed Ordinance and to
instead consider other more balanced approaches if additional funds are needed to support
affordable housing initiatives.
Thank you for your consideration
David
kairoi.com
David Thomson
VP OF CLIENT RELATIONS
3033 E 1st Avenue, Suite 705
Denver, Colorado 80206
O /720 583 0890
C /720 300 5500
kairoi.com
CONFIDENTIAL NOTICE: This message is intended only for the person or
entity to which it is addressed. This message may contain information that is
privileged, confidential, proprietary, or legally exempt from disclosure. If you
are not the named addressee, you are not authorized to read, print, keep,
copy, or distribute this message or any part of it. If you have received this
message in error, please immediately delete all copies and notify the sender
by email.
273
From:Jack Sumner
To:PublicInputTownCouncil
Subject:STR fee input
Date:Tuesday, December 17, 2024 2:59:28 PM
Dear town council,
I am heavily in support of a fee on STRs to help fund community housing. I am a service
industry professional in town and have been for years. I would be there today if I could but
I’m at work!
Thanks
Jack Sumner
274
From:Dave Tucker
To:PublicInputTownCouncil
Subject:STR Fee
Date:Tuesday, December 17, 2024 4:09:49 PM
Dearest Council,
I cannot attend this evening's session to voice support for the increase in fees for STRs but
wanted to reach out via email to do so.
I believe that with an exemption for local resident owners who only occasionally let rooms
using this opportunity to send a signal that we as a community are serious about regulating the
STR situation. Additional occupancy taxes may also be a good avenue but overall an cooling
of the STR market through increased fees, I believe, will send a strong indication that our
limited housing stock for locals is not to be easily turned into businesses. Houses that could
have been bought by a local like myself to live and work here.
Yes the average spending of visitors to STR is pointed out as a net benefit but I would also
point out that so is a housed local.
True we have projects coming online in the coming years that will alleviate some of our
housing issues.. but as a contractor with multiple vehicles and the need for a garage to operate
efficiently in vail... I for one don't want all the affordable single family homes snapped up and
run as condotels by outside business interests and those who I see as interlopers affecting the
fabric of our town.
Thank you
Dave Tucker.
--
(908)227-4439
The Only Son
Dave Tucker Music.com
275
From:James Maguire
To:Council Dist List
Subject:Str fee
Date:Tuesday, December 17, 2024 11:01:29 AM
Hi Council Members,
I’m writing to share my support for the proposed STR housing fee. It’s a fair,
straightforward way for short-term rentals to chip in and help tackle our community’s housing
challenges, while still allowing them to operate as usual. This small step can make a big
difference for the people who keep our community strong. Thanks for considering it!
Best,
James Maguire
276
From:CHARLES BOWLES
To:Council Dist List
Subject:STR fees
Date:Tuesday, December 17, 2024 3:25:56 PM
Dear Council Members,
As a taxpaying property owner in Vail, since 1996, I have seen boondoggles come and go.
The proposed increase in Short-Term Rental Licensing Fees of 15X to 80X, which I
understand to be seriously considered, may be the most egregious abuse of power I have
witnessed in those 28 years. Please come to your senses and reject this scheme.
Sincerely,
Charles Bowles
277
From:Caitlin Hanley
To:PublicInputTownCouncil
Subject:STR
Date:Tuesday, December 17, 2024 11:07:11 AM
Hi there,
I would love to see second homeowners who are short term renting see an increased fee. What
I would also love to avoid is locals who are trying to make some income on their vacation not
be able to if the increase were to be 6K per bedroom. I feel that if an vail local who can prove
that they work 30 plus hours a week and use their residences as their primary residences would
be able to short term rent when they travel or gone. I think this is reasonable and would easily
be able to be vetted by the town when charging STR fees.
Thank you
278
From:Ali Kelkenberg
To:PublicInputTownCouncil
Subject:Support of STR Ordinance No. 24
Date:Tuesday, December 17, 2024 11:27:49 AM
Dear Town Council Members,
After reviewing the 12/17 Council Agenda Packet, I am writing you in support of the STR
impact fee increase ordinance. The data from the 2022 EPS study shows that we are
woefully behind other similar ski town communities who experience the same housing
challenges as us. This impact fee is one step in the right direction to address the housing
crisis that our community is facing. For some owners of STRs, this may feel like a large
jump in fees but it should be viewed as a correction to what the data shows was an
underpriced license fee.
Additionally, this multi-faceted issue deserves a multi-pronged approach. I urge Council to
consider other options to address local housing challenges such as:
Evaluation of lodging taxes and potential reallocation of lodging taxes to fund housing
initiatives.
Capping the amount of licenses for non Condo-tel STRs in specifically zoned
neighborhoods such as Matterhorn, Intermountain, Chamonix, Sandstone, and East
Vail.
Increasing incentivization for LTRs to workforce within TOV limits.
I have lived and worked within Town of Vail limits for the last seventeen years and have
slowly watched friends move down valley or out of the community due to lack of availability
and affordability of housing for rent and purchase. I am a mother of a two-year-old and an
owner of a deed restricted home. I only felt comfortable to move forward with starting a
family because of the stability owning my deed-restricted home afforded. I have had
multiple conversations with friends in the community who are deeply connected to Town of
Vail and dream of having families and being TOV “lifers” who do not feel like they can have
children due to the instability of their housing situation within TOV limits. This ordinance is a
step in the right direction to address these problems. I’m not laboring under any sort of
delusion that increasing these fees will magically shift STRs back to LTRs BUT it will fund
programs to address the issues in the community. There is a clear need for these programs
which is evident in the amount of applications you receive for housing lottery applications
for deed-restricted homes.
You may be receiving many comments from STR homeowners who are not part of our
workforce asking you to vote against this ordinance and after reading through some of
them, I understand their frustrations as well. It’s a bummer when you’ve been getting a
smoking deal and it’s threatened to be taken away. BUT it is the right thing to do if we want
to continue the Vail brand of excellence in service. I know you’re looking for public input so
consider who you may not be hearing from: former workforce who deeply wanted to make it
work in the community and couldn’t because of housing availability and affordability. Folks
who live AND work in Vail are going to be more invested in the well-being of the community
and provide better, more knowledgeable and higher quality service to our guest. It’s like JW
Marriott said ““Take care of your employees, and they’ll take care of your customers.”
We are out of alignment in that equation and this is a step to get back on track.
279
Thank you,
Ali Kelkenberg
955 Red Sandstone Rd. A9
Vail, CO 81657
280
From:Richard Mason
To:Council Dist List
Subject:Vail - "STR per bedroom fee"
Date:Tuesday, December 17, 2024 3:35:46 PM
Honerable Council Members,
I'm a private vacation rental owner and resident of unincorporated Summit County (Peak Seven
Neighborhood). I wanted to write as I understand you are considering an Economic & Planning
Systems (EPS) derived "Accomodation Unit Regulatory Fee". Because we have been under iminent
threat of the same type of "fee" here in unincorporated Summit County... I've done extensive research on
the EPS methodolgy and "nexus study"... spending well over 400 hours investigating the issue. My
detailed analysis and highlights from that analysis is below. Please don't hesitate to call with any
questions (number below).
Findings:
Bullet points marked with indicate key findings.
My 15-page analysis of the Breckenridge EPS "STR per bedroom fee".
https://drive.google.com/file/d/1lxeZ9HuWYAsOiEreGQZ5udT5GHIfzkIr/view?
usp=drive_link
A 9-page analysis done by Greg Craig from Telluride and their EPS "STR per bedroom fee".
https://drive.google.com/file/d/1PvJhw9T_21h1_Q0GkEYLz75yYo8kE7iO/view?
usp=drive_link
The VERY COMPREHENSIVE STR analysis done by RRC Associates for Summit County
(completed February 2024). Page-47 indicates that "STRs were unlikely to be a major cause of
the run-up in Summit County housing prices in 2018-2022".
https://drive.google.com/file/d/13ceaSlkbfbjuDBe2lmZ02c4OFF1fnrVq/view?
usp=drive_link
Important notes related to the Vail EPS "nexus study" and the RRC Associates
Summit County analysis:
Nowhere in the Vail EPS "nexus study" does EPS assign blame or provide data
to support town claims that STRs are responsible for the high-cost of housing in the
town.
RRC Associates contributed to the Vail EPS "nexus study". In the Summit County
EPS "nexus study"... EPS was paid $17,000 for their work on the project (I don't
know how much they were paid for the Vail work... but it's probably similar).
EPS NEVER proves a "nexus" between STRs and unaffordable housing.
The vast majority of the beneficiaries associated with the proposed Vail fee do not contribute
a fee (non-contributing beneficiaries). Is that fact legal and reasonable? Those non-contributing
beneficiaries include: Vail resorts, hotels, restaurants, ski shops, and other resort amenity
suppliers. The kicker here is that those non-contributing beneficiaries have a much larger impact
on “tourist draw“ then does any short term rental.
The EPS "STR per bedroom fee" is based on "average expenditure
across all accommodation types" (Vail EPS "nexus study", page-3). EPS DID NOT segregate
spending (and in-turn employee generation) between STR guests... and non-STR guests in the
Vail analysis. It's not even clear if they segregated out "day-trip" guests. In the Breckenridge EPS
"nexus study" they did not.
281
2024-12-16_23-15-35.jpg
Legal Defenses:
I am not a lawyer... but I've done extensive research on possible legal defenses both in theory and in
practice per current lawsuits in motion.
TABOR
The bulk of my 15-page analysis above is spent arguing via the "Aspen bag fee" case that
the "STR per bedroom fee" is not "reasonable" which is the test that the Colorado Supreme
Court stipulated in their decision. At least one-half of the document is spent documenting
the COMPLETE unreasonableness of the "fee".
The risk here is that the Colorado Supreme Court appears to "rubber stamp" EVERY
hair-brained idea of what a "fee" is. Over the last decade... they have COMPLETELY
dismantled earlier Colorado Supreme Court rulings which provided specific
definitions for "fees" vs taxes.
Nollan/Dolan Test (Federal Supreme Court) & RIPRA (Colorado General Assembly’s
codification of Nollan/Dolan)
Is there an “essential nexus” between the legitimate government interest and the exaction
demanded and, second, whether there is a “rough proportionality” between the
governmental interest and the required dedication? If both questions are answered in the
affirmative, the exaction does not amount to a violation of RIPRA.
For the EPS "STR per bedroom fee"... the answer is "no" to both.
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In my mind... this is the best method to defeat the EPS "STR per bedroom fee".
Current & Past Legal Cases:
Pagosa Springs - the "STR per bedroom fee" was DEFEATED. (State Court)
This was NOT an EPS "nexus" study supported "fee".
See my 15-page analysis for a deep dive into this case.
Coonskin v. Town of Telluride (Federal Court)
This case is in process.
They are making SEVERAL great arguments... including RIPRA above.
All documents related to the case are
here: https://drive.google.com/drive/folders/1WKFE_HL6eXTBlTUg6SND5RfdLuqOVsER
Breckenridge (State Court)
This case is in process.
They are taking the TABOR approach.
Please let me know if you have any questions.
Best regards,
Rich Mason
104 Lodgepole Cir
Peak Seven Neighborhood
Summit County
(c) 303-881-2412
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AGENDA ITEM NO. 3.1
Item Cover Page
DATE:December 17, 2024
SUBMITTED BY:Greg Roy, Community Development
ITEM TYPE:DRB/PEC Update
AGENDA SECTION:DRB/PEC (3:20pm)
SUBJECT:DRB/PEC Update (5 min.)
SUGGESTED ACTION:
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
DRB Results 12-4-24
PEC Results 12-9-24
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Design Review Board Minutes
Wednesday, December 4, 2024
2:00 PM
Vail Town Council Chambers
Present: Roland J Kjesbo
Kit Austin
Rys Olsen
Herbert Roth
Absent: Mary Egan
1. Virtual Meeting Link
Register to attend Design Review Board Meetings. Once registered, you will receive
a confirmation email containing information about joining this webinar.
2. Call to Order
3. Main Agenda
3.1 DRB24-0411.001 Edwards Residence
Final review of a changed to approved plans (windows)
Address/ Legal Description: 281 Bridge Street 14/ Lot D & E, Block 5C, Vail Village Filing 1
Planner: Jamie Leaman-Miller
Applicant Name: Daniel Edwards, represented by Pierce Austin
Architects DRB24-0411.001 Plans.pdf
(Austin recused)
Rys Olsen made a motion to Approve with the findings it meets 14-10-2; Herbert Roth seconded
the motion Passed (3 - 0).
3.2 DRB24-0458 Herman Residence
Conceptual Review
Address/ Legal Description: 343 Beaver Dam Road/ Lot 1, Block 3, Vail Village Filing 3
Planner: Heather Knight
Applicant Name: Michael E. Herman QPR Trust, represented by Suman Architects
DRB24-0458 Plans.pdf
DRB24-0458 Documents.pdf
Rys Olsen made a motion to Approve the separation request with the findings it meets 14-10-6;
Herbert Roth seconded the motion Passed (4 - 0).
4. Staff Approvals
4.1 DRB23-0147.001 - LeMay Residence
Final review of a change to approved plans (venting)
Address/ Legal Description: 2317 Garmisch Drive/Lot 20, Block H, Vail Das Schone Filing 2
Design Review Board Meeting Minutes of December 4, 2024
1
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Planner: Jamie Leaman-Miller
Applicant Name: Brian & Angela LeMay, represented by R & H Mechanical
4.2 DRB24-0403 - Sundae Ice Cream Vail
Final review of a sign application
Address/ Legal Description: 242 East Meadow Drive/Lot Tract C, Block 5E, Vail Village Filing 1
Planner: Greg Roy
Applicant Name: Sundae Ice Cream Vail, represented by Roaring Fork Sign and Lighting
4.3 DRB24-0422 - 380LSL LLC
Final review of an exterior alteration (AC unit)
Address/ Legal Description: 635 Lionshead Place 380/Lot 8, Block 1, Vail Lionshead Filing 3
Planner: Jonathan Spence
Applicant Name: 380LSL, represented by Plumbing Systems
4.4 DRB24-0430.001 - Two Hearts LLC
Final review of an exterior alteration (soffit material)
Address/ Legal Description: 2009 Sunburst Drive/Lot 15, Vail Valley Filing 3
Planner: Jamie Leaman-Miller
Applicant Name: Two Hearts LLC/represented by Nedbo Construction
4.5 DRB24-0436 - Nutt Residence
Final review of a tree removal
Address/ Legal Description: 1855 Sunburst Drive A/Lot 6, Vail Valley Filling 3
Planner: Jonathan Spence
Applicant Name: William Nutt, represented by Old Growth Tree Service
4.6 DRB24-0438 - Mill Creek Court Condo
Final review of a sign application
Address/ Legal Description: 302 Gore Creek Drive/Lot 1, Block 5A, Vail Village Filing 5
Planner: Jamie Leaman-Miller
Applicant Name: Mill Creek Court Condo, represented by First Chair Designs
5. Staff Denials
6. Adjournment
Roland J Kjesbo made a motion to Adjourn ; Herbert Roth seconded the motion (4 - 0).
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Planning and Environmental Commission Minutes
Monday, December 9, 2024
1:00 PM
Vail Town Council Chambers
Present: David N Tucker
William A Jensen
John Rediker
Scott P McBride
Brad Hagedorn
Robyn Smith
Absent: Robert N Lipnick
1. Virtual Link
Register to attend the Planning and Environmental Commission meeting. Once registered,
you will receive a confirmation email containing information about joining this webinar.
2. Call to Order
3. Main Agenda
3.1
A request for a recommendation to the Vail Town Council of an application to
reestablish Special Development District No. 43, pursuant to Section 12 -9(A), Special
Development Districts, Vail Town Code, to allow for the development of a hotel addition,
add conference space and an employee housing apartment building, and related uses
and improvements, located at 2211 North Frontage Road West which is composed of
Tract C, Lot 1, Lot 2, and Lot 3 Vail Das Schone Filing No. 1 and Lot 1, Vail Das Schone
Filing 3, and setting forth details in regard thereto. (PEC24-0039)
The applicant requests this item be tabled to the December 23rd PEC Meeting.
Planner: Greg Roy
Applicant Name: TNFREF III Bravo Vail LLC represented by Mauriello Planning Group
Robyn Smith made a motion to Table to the December 23, 2024 meeting; Brad Hagedorn seconded
the motion Passed (5 - 0).
3.2
A request for review of an Exterior Alteration, pursuant to Section 12-7J-12, Exterior
Alterations or Modifications, Vail Town Code, to allow for a hotel addition and an EHU
apartment building, located at 2211 North Frontage Road West which is composed of
Tract C, Lot 1, Lot 2, and Lot 3 Vail Das Schone Filing No. 1 and Lot 1, Vail Das Schone
Filing 3, and setting forth details in regard thereto. (PEC24-0044)
The applicant requests this item be tabled to the December 23rd PEC Meeting.
Planner: Greg Roy
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Applicant Name: TNFREF III Bravo Vail LLC, represented by Mauriello Planning Group
Robyn Smith made a motion to Table to the December 23, 2024 meeting; Brad Hagedorn seconded
the motion Passed (5 - 0).
3.3
A request for review of a variance from Section 14-10-4 Architectural Projections, Decks,
Balconies, Steps, Bay Windows and the like, Vail Town Code, pursuant to Title 12
Chapter 17, Variances, Vail Town Code, to allow for an architectural projection to project
more than four feet into a required setback, located at 778 Potato Patch Drive 1/Vail
Potato Patch Filing 1, Block 1, Lot 18 – Irish/Bartlit Condominium and setting forth
details in regard thereto. (PEC24-0046)
Planner: Greg Roy
Applicant Name: Fred Bartlit, represented by Pierce Austin Architects
PEC24-0046 Staff Memo.pdf
Attachment A. PEC24-0046 - Vicinity Map.pdf
Attachment B. Applicant Narrative.pdf
Attachment C. Plan Set 10-28-24.pdf
Timestamp: 00:02:29
Planner Roy gives a presentation. He talks about the variance history on the site and takes
questions from PEC as to site orientation.
Hagedorn asks for clarification on the allowed projections, Roy goes through the setback exhibit.
The variance in 1983 allowed the footprint to go into the 15’ setback.
Smith asks about the material for the awning, Roy says it’s a roof material.
The applicant is represented by Kit Austin and Reed Kildow with Pierce Austin Architects.
Kildow gives a presentation. He talks about the structural considerations. Austin talks about
additional considerations that led them to this solution, the plan is adhering with the original
variance that was granted.
Rediker asks how far from the property line the projections would be? Kildow says it would be around
seven feet from the property line. The deck addition is within the footprint of the existing variance.
Roy talks about the considerations of the 1983 variance. The variance on this property line is adjacent
to the National Forest, not a neighboring property.
Tucker asks if the projection into the setback is the roof? Kildow confirms.
Jensen, where is the closest neighbor?
Roy says there is a neighbor to the north, the variance is on south and east portion of the site.
Rediker asks for public comment. There is none.
Rediker asks for commissioner comment.
Tucker, seems like they’ve done a good job minimizing the projections with the constraints they have.
McBride, agrees with memo.
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Smith, hardship is the historical location of the structure, variance is warranted. Not adding GRFA, not
special privilege. Covering existing encroachment. There are other setback variances in this neighborhood.
Encourage neighbors to stop calling cops on people recreating legally in their "side yard".
Hagedorn, agrees with Smith. Meets the review criteria, next to USFS land which is a unique situation.
Jensen, agrees with Smith. This is logical because of the 1983 variance.
Rediker, agrees with other commissioners. Not granting special privilege for reasons stated by
Smith, agrees with staff analysis of review criteria.
William A Jensen made a motion to Approve with the condition and findings on page 7 & 8 of the
staff memo; Robyn Smith seconded the motion Passed (6 - 0).
3.4
A request for recommendation to the Vail Town Council, pursuant to Section 3-2-6A,
Function, Vail Town Code, to amend Section 5.19 of the Lionshead Redevelopment
Master Plan, and setting forth details in regard thereto. (PEC24-0047)
Planner: Jamie Leaman-Miller
Applicant Name: HCT Member LLC, represented by Mauriello Planning Group
PEC24-0047 Staff Memo.pdf
Attachment A - Applicant Narrative.pdf
Timestamp: 00:28:58
Leaman-Miller gives a presentation on the application. He goes over the history of the LHRMP and
how it informs the Evergreen development. He goes over the history of that parcel and development
approvals, then over the planning efforts for Lot 10. He describes the amendment the applicant is
proposing. There are two portions, one to permit a build-to line for the evergreen that allows for
building to come up to the property line, and the second which refers to Lot 10 and how it could be a
cooperative effort to develop Lot 10 between the Town and the Evergreen.
Rediker asks to see the plan for the build-to line between the Evergreen and Lot 10. Rediker asks
what the coloring on the Lot 10 diagram indicates. He also asks to see the provisions of the LHRMP.
Jensen notes that he is in favor of the idea of the design of the park, but curious how the maintenance
of the park will be done. As time goes on, the maintenance should be done to the level that the Town
does to maintain Town Parks.
Hagedorn asks why the applicant is doing this application when it is for lot 10. Is this done in
conjunction with the Town.
Leaman-Miller notes that Council is in favor of working on the design of the park with the applicant
and the amendment lays the groundwork for that.
Rediker asks if this wasn’t going on the Town would need a variance for this.
Matt Gennett clarifies that it would be the property owner, not the Town that would need to apply for
the variance.
Dominic Mauriello, representing the applicant gives a presentation on the proposal. Goes over the idea,
and where the concept came from. Talks about the connection between the Evergreen and Meadow Drive
as a pedestrian connection. He refers to the work that is about to start with staff to design the park and
work on agreements for the maintenance and use of the park. Similar language is used for the
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Evergreen’s relationship to Middle Creek and the Hospital.
Mauriello goes over the diagram and the different colors and potential uses for Lot 10. A café is
currently an idea for how to utilize the space of the building at the lowest level that fronts on Lot 10.
Rediker asks if the restaurant would be removed from the lobby if this café was added.
Mauriello says that they may do both. Clarifies that the café would all be in the Evergreen and
outdoor seating could be on Lot 10.
Smith asks if the liquor license could be extended to permit open containers and be a place to
gather before events at Dobson.
Mauriello agrees, the idea is good and they see this used as an area to hang out. The idea is a cool
piece of art that would have draw that people would come to see. There could also be a portion of the
lot that would be used to transition from park to the evergreen landscaping lid.
Hagedorn asks if it is a 12’ step from landscaping lid to the park?
Mauriello confirms. The lid is as low as possible with the uses. The eastern part would have something
to screen the hospital on the eastern side.
Rediker wants to understand the interplay between the café and Lot 10.
Mauriello shows some early concepts for the park.
Rediker asks about if they would need a variance for the building if this gets approved.
Mauriello says that they would not since the build-to lot lines would remove the need for a variance.
Jensen asks how much additional square footage they would get with the building coming up another
10 feet.
Mauriello says it is in a couple thousand square feet, but that they would need to come back for
some conditional use permits, a variance, and a change to the Major Exterior Alteration to make
these changes.
Mauriello continues in other designs.
Jensen asks about ADA access.
Mauriello says that it would be accomplished through the building. Continues on with more
design concepts.
Smith asks what the PECs role in these changes.
Mauriello goes over the changes to the Evergreen that require PEC approval.
Rediker asks why we are looking at this as an amendment to the Master Plan instead of a Variance.
Roy goes over the additional public process involved with the master plan amendment.
Rediker asks if it is because the application wouldn’t meet the variance criteria.
Gennett goes over the LHRMP considerations. The Civic Area plan was not completed until 2019, so
Lot 10 was not contemplated the way it is today in the last amendment to the Evergreen language.
That context has become better defined.
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Hagedorn asks if this requires the Town to work with the Evergreen with this language added.
Gennett says that this does not bind the Town in any way, but if it does go through it would
require a Development Agreement.
Mauriello adds that LHRMP is peculiar as it has a lot by lot plan. Some could be benefits to the lot,
but other are additional requirements set out in the Master Plan.
Rediker asks the applicant to proceed.
Mauriello rounds out some comments and notes how the change is similar to other times plans
have been changed. Goes over how the application is meeting the criteria listed in the staff report.
Jensen likes to see the café, but seems more like an amenity to the building and how it could be a
better amenity for the park.
Dominic disagrees. Thinks it’s a great amenity.
Jensen follows-up that this could be something more for the public and not a building run business.
Smith says the café could be a great benefit and needs to keep running. The public space needs
something that is going to be active and needs to ensure it is not going to go out of business.
Mauriello says the restaurant may change with the addition of this café. Before the restaurant was a
big driver of foot traffic and now the café may be one of those primary drivers.
McBride asks if the Town will eventually sell the lot to the Evergreen.
Leaman-Miller says that is not in the plan and a development agreement would be required.
Mcbride questions the wording in the memo about the lack of need for a setback. These are still
different properties
Gennett clarifies that the lot will remain in perpetuity a park and that will serve as the buffer from
the right-of-way that would otherwise be done through a traditional setback.
McBride is concerned this will handcuff the Town in the future.
Rediker asks for anymore questions.
Tucker notes that there was good amount of discussion and other members have asked the
questions he had on his mind.
Rediker opens public comment. No public comment in the room or online.
Smith finds the proposal to be exciting. Likes the idea of an outdoor café space. It’s a very Vail way
to develop where the public and private realms are mixed and one is not sure where one ends and
the other begins.
Jensen sees a great value in public/private partnerships and sees this proposal as a great example
of how that is being shown here. The Town will maintain control of the park and that needs to be
maintained in the license agreement. Overall a good partnership.
Hagedorn believes this is a great change. This could add a lot to the area to have this activated space
by the library and Dobson. The additional potential building area is in line with the idea of them
developing the park. If this is done right, no one will recognize that there is a property line there. This
speaks to the European heritage of the Town with also adding a café to the adjacency of the park.
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Tucker agrees with Commissioner Hagedorn. It’s a very complex amount of work done at this point
to ensure it is developed and maintained as being explained.
McBride agrees with Jensen’s comments. Concerned with the building right up to the property line.
There needs to be a tight agreement to maintain that property going forward.
Rediker doesn’t believe that the conditions have changed since the plan was adopted. Does not think
that the plan was in error. Would have preferred the applicant come in and ask for a variance. What is
being done here, is to amend the master plan to remove a setback so the Town can turn over land to
a private enterprise. This is allowing a private developer to build right up to the property line because
the developer has told Town Council that they will build them a park. Our current Council is in a tight
budget and is under pressure. The Town is trading and allowing more development to occur on a lot
adjacent to Town property to not have to finance the development of a park. More ways to get a park
developed without amending a master plan to do it. Goes back to the request is amending a master
plan so the Town doesn’t have to pay to develop a park. This would never happen in any other parcel
or any other part of Town.
Tucker asks about the build-to line in lieue of setbacks of 10 feet and how they relate.
Roy answers that the build-to line supersedes the setback and the amendment is to the Master Plan.
Jensen adds that he believes the public/private partnerships have a trade-offs but makes sense.
Robyn Smith made a motion to Recommend for approval with the findings on page 10 & 11 of the
staff memo; William A Jensen seconded the motion Passed (4 - 2).
Voting For: William A Jensen, Robyn Smith, Brad Hagedorn, David N Tucker
Voting Against: John Rediker, Scott P McBride
4. Approval of Minutes
4.1 PEC Results 11-25-24
PEC Results 11-25-24.pdf
Robyn Smith made a motion to Approve ; David N Tucker seconded the motion Passed (6 - 0).
5. Information Update
5.1 Roadmap to Net Zero Emissions
Attachment A. Regional Net Zero Roadmap Exec Summary.pdf
Attachment B. Regional Net Zero Roadmap Community
Presentation.pdf Memo Roadmap to Net Zero.pdf
Timestamp: 01:53:41
Cameron Millard, Clean Energy Specialist, and Building Official Dan Brown gives a presentation.
The consultants give a presentation, they are Kim Schlaepfer, with Lotus Engineering and
Sustainability and Gina McCrackin with Climate Action Collaborative
Schlaepfer gives a presentation on the net zero code goals.
McCrackin gives a presentation on net zero.
Rediker asks about renewal energy considerations. Schlaepfer talks about the considerations related to
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renewable electricity.
Mike Steiner with Holy Cross Energy, they have a goal of 100% renewable energy by 2030. They are
at 90%, the last 10% is very tricky.
Jensen, how does a storage asset work? Steiner, we can store some of the solar and discharge
that battery during peak hours, we don’t want to waste those kilowatt hours. We want to use this
energy wisely.
Smith, does Holy Cross generate 100% of the energy they distribute? Steiner, we have contracts for a
lot of that energy.
Hagedorn, does distributed rooftop PV still have a place given how green the grid is?
Steiner, yes it does. For bill offsets it makes sense, coupling it with storage is the best approach as
you’re optimizing where you’re self-generating and storing your energy. We don’t like seeing a lot of
capital on a huge solar system on a roof, ROI on that is not great. Maybe the building envelope going
all electric.
Jensen, should homes have storage systems? Steiner, not putting that on the homeowner but there
are benefits to it and increase resiliency when the power goes out.
McCrackin continues presentation. Schlaepfer talks about the outreach in the process.
Jensen, people are asking if they can build homes to the energy code at different price points. Did
you look at construction site management?
Tucker, the Town is updating their inspection process to address this. In the community we have a lot
of second homes with vaulted ceilings, which lose a tremendous amount of energy.
Jensen, how does this group deal with hydronic heat?
Schlaepfer, this stops at the building envelope, does not address boilers for snowmelt although
those can be addressed by the EEOP.
Smith asks about the process going forward. Schlaepfer, adopting this roadmap means the TOV
is committed to the netzero definition by 2030, and is collaborating with regional partners.
McCrackin, this alone would not get us to that goal, but it’s contribution to the suite of tools to
achieve this.
Smith, what does success look like for the TOV?
Schlaepfer, achieving goals, making sure it aligns with the region.
Schlaepfer talks about greenhouse gas reductions.
McCrackin talks about partnerships and coordination.
Chris Lammers is a local builder for 20 years. He talks about a house he built in Wolcott with
these principles.
Schlaepfer talks about some example projects in Eagle and neighboring counties.
Smith wants to understand a Vail specific perspective. Where are we and what does that change entail?
Hagedorn, as a builder you’ll have a big sell to consumer on electric ready.
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Schlaepfer, where Vail needs to go there may be some tradeoffs. The cooking and fireplace are
probably a smaller part of that energy footprint.
Hagedorn and Schlaepfer talk about gas stove considerations.
Hagedorn, when you’re looking at this during plan review process how will that work? Discussion
ensues on building code compliance.
Rediker, does the IECC mandate in any way all electric?
Schlaepfer, it’s intentionally fuel agnostic, in the 2024 code there is a slight electric preferred approach.
Rediker, what is additional efficiency for very large homes?
Schlaepfer, the most common approach is that large homes have to comply with a
performance pathway.
Rediker, how are governments approaching redevelopment as opposed to new
construction? Hagedorn, you have to meet the new code at a certain threshold.
Rediker, are there ways other municipalities are encouraging people to achieve these net zero
goals? We’re built out in Vail, there are many structures that are hardly touched. Are there ways to
encourage these properties?
Schlaepfer, rebate and incentive programs are the most common for this. There are fewer options
from a regulatory standpoint.
Jensen brings up an example, if you complied with these goals you get a reduction in your
property taxes.
Schlaepfer says Eagle County gets a lot of funding from EEOP fees, which is used for
upgrading properties for energy efficiency.
Jensen talks about a lot of the time the challenge for EV’s is for needed infrastructure updates.
Smith asks to define the value of being above the building code and what that means.
Smith, additional efficiency for large homes is an important topic for Vail. How is this different from
the end user perspective, the non-technical side? What is the path that Vail must take to realize the
roadmap.
Rediker, asks about a natural disaster situation, is that a concern that people will raise if we adopt
all electric? How do you address this to tell the public this is not a concern?
Schlaepfer, gas appliances also don’t work when the power is out. Steiner says we are in wildfire
territory, that is the number one concern. Wildfire mitigation is a top priority, taking measures to
improve resilience of the system. We’re fortunate we generally don’t suffer long outages. You may
get some comments on that, it is an educational opportunity.
Rediker asks about exceptions to all electric as noted for 2030 roadmap.
Schlaepfer says there are exceptions, backup power for places that require it.
Hagedorn asks if they have talked to the Fire Department about storage.
Steiner, installers have fire mitigation efforts that is looked at by fire departments.
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Smith and Steiner discuss storage concerns, Steiner says we don’t enforce this it’s up to
the municipalities and our partners.
Smith, suggest the plan illustrate the cost to the user and cost to the municipality.
Tucker, as a builder, having stuff in the code helps to guide the project to get a client on board
with things that sometimes are significant costs. Would be great to have a workforce to train to
do these things.
6. Adjournment
William A Jensen made a motion to Adjourn ; Robyn Smith seconded the motion Passed (6 - 0).
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AGENDA ITEM NO. 4.1
Item Cover Page
DATE:December 17, 2024
SUBMITTED BY:Liz Gladitch, Economic Development
ITEM TYPE:Information Update
AGENDA SECTION:Information Update (3:25pm)
SUBJECT:October 17, 2024 VLMDAC Meeting Minutes
SUGGESTED ACTION:
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
VLMDAC meeting minutes October 17, 2024
296
Vail Local Marketing District Advisory Council
Monthly Meeting
October 17, 2024, 8:30 am
AGENDA
VLMDAC Board Member Attendees:
In-person- Theron Gore (East-West), Jana Morgan (Sweet Basil), Kim Fuller
(Jaunt Media Collective), Patrick Davis (Manor Vail)
Zoom- Esmarie Faessler (Sonnenalp), Douglas Kessler (Homeowner), Randi
Weingartner (Vail Resorts), Sam Biszantz (Council Rep/Root & Flower)
Additional attendees:
In-person- Mia Vlaar (Town of Vail), Liz Gladitsch (Town of Vail), Abby Oliveira
(Town of Vail), Diana Ramirez (Town of Vail), Jake Shipe (Town of Vail),
Slade Cogswell (970 Design), Beth Wright-Cheeseman (Miles), Alison Wadey
(VCBA),Ben Walton (Miles), Kristin Yantis (MYPR), Paul Stedman (Amplifi),
Elle Pallai (Amplifi), Kristy Slack (Grand Hyatt)
Zoom- Kay Schneider (Vail Valley Partnership), Amanda McNally (MYPR),
Michal Bednarczyk (970), Jeremy Coleman (BAAG), Bob Brown (BAAG),
Bryanna Kody (Dessert Lab), Cailin Ellis (Cailin & C0.), Emmanual Diaz-Hayes
(), Jenna Luberto (Mindful Mountain Marketing), Laura Libby (Miles), Molly Bond
(Vail Resorts), Nancy Burke (), Sylvia Rivera (MYPR), Tom Winter (Vail
Resident), Chris Fair (Resonance), Dominic Prevost (Resonance), Angeline
Bartley (Resonance), Jodi Doney (Eagle County Airport),
Call to Order
Jana called the meeting to order at 8:31 AM
I. MINUTE APPROVAL September 18, 2024
Motion to approve- First Kim / Second Esmarie / unanimous
II. MONTHLY FINANCIAL REPORT
Lodging tax for the month of August $309,000
Year to Date through September $4.2 million
Year to Date expenses $3.3M
ACTION:
- Jake to provide update on lodging tax collections and LMD budget for
2025 at next meeting.
- Carly to present 5-year revenue/expenditure forecast at upcoming budget
discussions.
INFLUENCER PROGRAM RESULTS
Kristin noted that the influencer program had higher results from those who
didn't collaborate, suggesting a need to assess how best to boost from a town
297
standpoint.
Discussion on the success of their influencer program, the focus on micro and
macro influencers, and the potential for expanding the market in Brazil.
Campaign Goals for the Influencer program are to expand our reach and
impression through MYPR organic efforts, focusing on Micro/Macro
influencers with high engagement/audience in Vail’s key markets
ACTION:
- Diana to provide chart showing follower growth for social media accounts to
include as part of the final report.
- Kristin to pull audience profile information for influencers used in summer
campaign to include as part of the final report.
-
III. PR UPDATES
The Q3 report is in the presentation for more info
Quarterly “What’s new” tip sheet for the media
7 media visits, 4 blogger visits, and 5 influencer campaigns
“Coolcation” meaning cooler weather places are being highlighted
Q4- Pitch Winter tipsheet, Travel Classics, Early Winter Influencer program,
2025 planning
IV. MEXICO UPDATES
Recap on the summer Media FAM including Sweet Basil, Mountain Standard,
and an Orchestra from Mexico performing at Bravo
We have achieved Vail as the best destination
V. MEXICO SUMMER MEDIA RESULTS
Touched on Public relations & Paid Media working with Miles. Miles leaned
into Sylvia’s expertise to reach a more qualified audience
VI. Strategic Planning Session Feedback
Carly has done a five-year forecast, we will discuss
Strategic planning was really good, sorry to those who couldn’t attend
Will present more at the November meeting
ACTION:
- Steve to follow up with board members who missed strategic planning
session.
- Mia/team to align strategic plan with operating plan for presentation to
Town Council in January.
VII. Vail Brand Focus Group Planning
298
Objective- Conduct a series of focus groups with residents and past visitors to
gather their input on the shortlisted new brand identities for VLMD
Recommended focus groups- full-time Town of Vail residents, Seasonal area
residents, age groups
Discussion ensued – Motion to move forward with changes to the focus group
format based on feedback from VLMDAC.
ACTION:
Dominic/Chris to revise focus group presentation to include current Vail logo
as third option, to adjust strategic mandate wording in brand platform
presentation and to show logos in context (e.g. on mock website, ads) in
focus group presentation
Motion to move forward with the focus group with revisions discussed and
with a final review from the ADHOC members Theron first/ Patrick second/
unanimous
VIII. Other Business
ACTION: Kay to prepare slide deck on Ripe updates for next board meeting.
IX. Public Comment
Alison Wadey introduced herself, Vail Chamber and Business Association
X. Adjournment
Esmarie called the meeting to adjourn at 11:10 am unanimous
Upcoming Meetings:
VLMDAC Board Meeting
Thursday, November 21, 2024, Grand View Room
299
AGENDA ITEM NO. 4.2
Item Cover Page
DATE:December 17, 2024
SUBMITTED BY:Steph Johnson, Town Manager
ITEM TYPE:Information Update
AGENDA SECTION:Information Update (3:25pm)
SUBJECT:November 4, 2024 AIPP Meeting Minutes
SUGGESTED ACTION:
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
November 4, 2024 Minutes
300
Art in Public Places Board Meeting Minutes
Monday, November 4, 2024
AIPP Board members present: Tracy Gordon, Kathy Langenwalter, Courtney St. John,
Lindsea Stowe; Susanne Graff (zoom)
Others present: Molly Eppard - AIPP Coordinator, Gabe Starr – Betty Ford Alpine Gardens
1. Call to order.
2. No citizen participation.
3. Main agenda
3.1 Approval of October 7 Board Meeting and October 14 Special Board Meeting minutes.
• Kathy motions to approve meeting minutes, second by Tracy, all in favor.
October 7, 2024 Minutes.pdf
October 14, 2024 Minutes.pdf
3.2 18th Annual Vail Winterfest proposal review, Paul Wertin & Jake Proffit – Alpine Ice.
Winterfest 2025 Sketches-Proposal
• Paul presents proposal sketches including scale of six ice sculptures of owls for the Winterfest
installation.
• The Board provides positive feedback to the artists.
• Molly requests a layout of the sculptures before we enter into a contract.
• Molly will explore the possibility of integrating a nocturnal soundscape into the installation. Paul
believes it will add to the overall experience.
• Tracy motions to approve Winterfest proposal presented for “Night Owls” by Alpine Ice. Kathy
seconds and all in favor.
3.3 Betty Ford Alpine Gardens Summer Exhibition – Habitat, Gabe Starr – Director of Education.
Copy of Habitat Prospectus.pdf
• The four aspects of this Smithsonian exhibition will be Dead Wood is Life, Life Underground,
Nests, and Key to the Forest.
• The exhibition prospectus includes diagrams for building and integrating art within the display.
• Courtney mentions the work by Denver Botanic Garden’s in-house employee who creates
intriguing bee hotels as a possible artist for the BFAG to collaborate.
• The Board would like to know more about budget and expectations for the longevity of the
potential art.
• The Board is supportive of the concepts for the exhibition.
3.4 Final approval of commissioned sculpture Rising from Memory by Squire Broel.
Squire Broel_Final Approval.pdf
2024_S002_Rising from Memory_Vail.pdf
• Squire presents the images of the completed commissioned sculpture Rising from Memory and
compliments the process and efficiency of the installation.
301
• The plaque for the work has been ordered and the landscaping will be reviewed by the TOV
Landscape architects.
• Kathy motions to formally accept the completed sculpture Rising from Memory by Squire Broel
and to submit final payment to the artist. Courtney seconds and all in favor.
3.5 AIR Strategic Plan – Phase 2 review.
• Molly discussed many aspects of the operations and facilities of the studio with Nine Dot Arts.
The Board asks if the model exists with other TOV facilities.
• Kathy would like to see more specifics in the rating system and criteria.
• Phase 2 will need to be reviewed internally with staff for recommendations, especially regarding
general liability and insurance.
• The Board would like to better understand the construction timeline and when it will be able to
be occupied with a working artist.
3.6 Rotating photography in Council Chambers “Call to Artists” review.
• The open call should be drafted at the December meeting for review.
• The board discusses display length of time and potential stipends for printing work on display.
• The open-ended call and application process for consideration will enable an ongoing database
of potential regional photographers.
4. Coordinator updates.
• Dobson Ice Arena remodel approved by PEC.
• The Lionshead parking structure murals by Randy Milhoan are in disrepair and are scheduled to
be repainted next summer by Facilities Dept. Many of the walls are exterior, so there is a lot of
weather deterioration from snowmelt seeping inside. There are some which can be preserved, but
many are not viable.
• AIR Advisory Committee update by Lindsea.
• Studio excavation is underway, and Molly will work on the construction banner for the site.
• Next meeting December 2.
• Molly discusses meeting with the Finance Department to better understand fundraising and
naming opportunities. Molly recognizes and thanks the donation received by Kathy Langenwalter
and Dick Cleveland.
• The Board reviews a variety of artists and mediums Molly compiled for discussion and inspiration.
5. Adjournment.
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AGENDA ITEM NO. 5.1
Item Cover Page
DATE:December 17, 2024
SUBMITTED BY:Stephanie Bibbens, Town Manager
ITEM TYPE:Matters from Mayor, Council, Town Manager and Committee Reports
AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee
Reports (3:25pm)
SUBJECT:Matters from Mayor, Council, and Committees (15 min.)
SUGGESTED ACTION:
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
303
AGENDA ITEM NO. 5.2
Item Cover Page
DATE:December 17, 2024
SUBMITTED BY:Stephanie Bibbens, Town Manager
ITEM TYPE:Matters from Mayor, Council, Town Manager and Committee Reports
AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee
Reports (3:25pm)
SUBJECT:Town Manager Report (5 min.)
SUGGESTED ACTION:
Annual Community Meeting March 25, 2025
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
304
AGENDA ITEM NO. 5.3
Item Cover Page
DATE:December 17, 2024
SUBMITTED BY:Stephanie Bibbens, Town Manager
ITEM TYPE:Matters from Mayor, Council, Town Manager and Committee Reports
AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee
Reports (3:25pm)
SUBJECT:Council Matters and Status Report
SUGGESTED ACTION:
VAIL TOWN COUNCIL AGENDA ITEM REPORT
ATTACHMENTS:
2024-12-17 Matters
305
COUNCIL MATTERS
Status Report
Report for December 17,2024
Comments from the November 19th Town Council meeting during “Matters”:
Town Council thanked the Public Works staff for their hard work in dealing
with the massive snowfall before Thanksgiving!
Town Council thanked Linda Moore, the town’s Court Administrator for
43 years of service!
Concern was expressed regarding long trucks and vans parking on the top
deck of Vail Transportation Center, causing safety issues due to narrow
passages for cars and pedestrians.
Social Media Listening
Social Listening link: https://share.sproutsocial.com/view/30179b97-0d73-4fe4-979b-
970d739fe4b6
Far and away the post with the most impressions across our channels was from Vail PD
who posted a pic from Birds of Prey
https://www.facebook.com/159459353017840/posts/879441381019630
In the News______________________________________________________
Nov. 26
Please Bury the I-70 Idea
https://www.realvail.com/the-o-zone-please-forever-bury-i-70-burial-plan-while-resurrecting-rail-
to-vail/a20796/
Dec. 2
West Lionshead
https://www.vaildaily.com/news/vail-new-village-west-lionshead-planning-process/
Dec. 4
2025 Budget
https://www.vaildaily.com/news/town-of-vail-2025-budget-record-157-8-million-spending/
Dobson Remodel
306
https://www.vaildaily.com/news/vail-yeti-ready-to-get-dobson-rocking-in-fridays-home-hockey-
opener/
Dec. 10
Live Music in Vail
https://www.westword.com/music/live-music-in-vail-colorado-for-the-2024-ski-season-22749570
Dec. 11
Trailblazer Nominations
https://www.vaildaily.com/news/town-of-vail-accepting-nominations-for-2025-vail-trailblazer-
award/
Ford Parking Lot Closure
https://www.realvail.com/vails-ford-park-parking-lot-to-be-closed-dec-11-15/a20922/
West Lionshead
https://snowbrains.com/vail-resorts-announces-254-million-of-resort-improvements-and-
upgrades-for-2025/
Electric Vehicles
https://www.summitdaily.com/news/electric-vehicles-colorado-leading-state/
Dec. 12
2025 Budget
https://snowbrains.com/vail-approves-record-157-8-million-budget-for-2025-prioritizing-
affordable-housing-and-the-workforce/
Upcoming Dates
Jan 6 Vail Trailblazer nominations due date
Feb (tbd)Ski With Electeds!
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