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HomeMy WebLinkAbout2025-01-21 Agenda and Supporting Documentation Town Council Evening Meeting1.Call to Order (6:00pm) 2.Public Participation (6:00pm) 2.1 Public Participation (10 min.) 3.Any action as a result of Executive Session (6:10pm) 4.Consent Agenda (6:10pm) 4.1 Resolution No. 5, Series of 2025, A Resolution Approving an Intergovernmental Agreement between the Town of Vail ("The Town") and US Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives (The "ATF") Approve, approve with amendments, or deny Resolution No. 5, Series of 2025. Background: The Vail Police Department is requesting the Town Council permit the Town Manager to enter into an Intergovernmental Agreement with the ATF to receive a bomb/accelerant trained canine. 4.2 Resolution No. 6, Series of 2025, A Resolution Approving a Memorandum of Understanding for the Use of Genasys Evac/Protect in Eagle County Approve, approve with amendments, or deny Resolution No. 6, Series of 2024. Background: This Memorandum of Understanding ensures all fire, EMS, and law enforcement agencies in Eagle County will VAIL TOWN COUNCIL MEETING Evening Session Agenda Vail Town Council Chambers and virtually by Zoom. Zoom meeting link: https://vail.zoom.us/webinar/register/WN_6UULGQbHStOodDdMprk4xQ 6:00 PM, January 21, 2025 Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Council will consider an item. Public comment will be taken on each agenda item. Public participation offers an opportunity for attendees to express opinions or ask questions regarding town services, policies or other matters of community concern that are not on the agenda. Please keep comments to three minutes; time limits established are to provide efficiency in the conduct of the meeting and to allow equal opportunity for everyone wishing to speak. Public Participation Town Council Memo ATF K9 Resolution NO. IGA ATF ATF National Canine Division Program Application Package 004_1 1 support the training and use of this software to plan, execute, and communicate emergency evacuations in Eagle County. 4.3 Resolution No. 7, Series of 2025, A Resolution Approving an Amended Operating Plan and Budget of the Vail Local Marketing District, for its Fiscal Year January 1, 2025 through December 31, 2025 Approve, approve with amendments, or deny Resolution No. 7, Series of 2025. Background: This purpose of this resolution is for the Town Council to approve, approve with amendments, or deny the amended operating plan of the Vail Local Marketing District (the “VLMD”), in accordance with C.R.S. §29-25-110. 4.4 Contract Award to Emergent Execs for Leadership Development Program Authorize the Town Manager to enter an agreement, in a form approved by the Town Attorney, with Emergent Execs for a Leadership Development Program, not to exceed $138,500. Background: In Spring 2024, the Town Council established a strategic goal to support access to leadership development training for Vail's workforce. 4.5 Contract Award to Hallmark Inc for the Ford Park Retractable Bollard Project Authorize the Town Manager to enter into an agreement, in a form approved by the Town Attorney, with Hallmark Inc. for the Ford Park Retractable Bollard Project, in an amount, not to exceed $300,000.00. Background: The Town has budgeted to install two retractable bollards at the entrance to East Betty Ford Way in Ford Park to better control vehicles from entering Ford Park. 5.Public Hearings (6:10pm) 5.1 Ordinance No. 24, Series of 2024, Second Reading, An Ordinance Amending Chapter 4-14 of the Vail Town Code to Establish Regulatory Fees for Short-Term Rentals (6:10pm) 90 min. Approve, approve with amendments, or deny Ordinance No. 24, Series of 2024 upon second reading. Presenter(s): Carlie Smith, Finance Director Background: Earlier this year, Council requested an update on short-term rentals and asked staff to review the Town's STR Town Council Memo Genasys Resolution_6_2025_GENASYS.pdf MOU - Commitment to Use Genasys Evac - Final 2025 Resolution No #7 VLMD 1st Supplemental Budget 250121 VLMD 1st Supplemental Budget Memo 2025 VLMD First Supplemental Presentation 2025-01-21 Council Memo, Leadership Dev Agreement Council Memo 1-7-25 2 regulations. This is a proposed ordinance to establish impact fees for short-term rentals. 5.2 Resolution No. 3, 2025, A Resolution of the Vail Town Council Approving an Amendment to the Lionshead Redevelopment Master Plan to Accommodate Future Development on the Evergreen Lodge at Vail Development Site (7:40pm) 20 min. Approve, approve with amendments, or deny the amendment to the Lionshead Redevelopment Master Plan. Presenter(s): Jamie Leaman-Miller, Planner II Background: An amendment to the Lionshead Redevelopment Plan to amend Section 5.19. The amendment addresses the Evergreen site and Lot 10. 6.Action Items (8:00pm) 6.1 Resolution No. 4, Series of 2025, A Resolution Approving A Town of Vail Timber Ridge Village Employee Housing Unit Deed Restricted Credit Program (8:00pm) 30 min. Approve, approve with amendments, or deny Resolution No. 4, series of 2025. Presenter(s): Jason Dietz, Housing Director and George Ruther, Ruther Associates LLC Background: The purpose of this agenda item is to present an EHU deed restriction credit program to the Vail Town Council allowing home buyers at the new Timber Ridge Village to purchase an EHU deed restriction credit upon purchase of the homes. 7.Adjournment 8:30pm (estimate) 213137- STR Fee Technical Memo 5-12-22 250121 STR Fee Ordinance 24 2024 STR Fee-O011625 012125 STR 2nd reading powerpoint Short Term Rental Public Comment Staff Memorandum 01-21-25 Resolution No. 3, Series of 2025 PEC24-0047 Staff Memo 12-09-24 PEC_Results_12-9-24 Staff Presentation 01-21-25 Applicant Presentation - 01-21-25 Resolution 4 2025 Deed Restriction Credit Program EHU Deed Restriction Credits at Timber Ridge Village Policy Recommendation 01-07- 2025 EHU Credit Slide 01212025 mj.pptx 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. 3 Please call 970-479-2460 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. 4 AGENDA ITEM NO. 2.1 Item Cover Page DATE:January 21, 2025 SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Citizen Participation AGENDA SECTION:Public Participation (6:00pm) SUBJECT:Public Participation (10 min.) SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Public Participation 5 6 7 8 9 10 11 12 From:Jessie Kutschke To:Council Dist List Subject:TOV Parking Date:Tuesday, January 21, 2025 12:39:59 PM Jessie Kuschke 998 W Beaver Creek Blvd D312 Avon, CO 81620 jessie@vailluxurygroup.com 9722819429 1.21.2025 Town of Vail Council 75 S Frontage Rd W Vail, CO 81657 Dear Town of Vail Council, As a local resident, active community member, and someone who works in the Village, I am deeply frustrated by the increasingly burdensome parking policies that disproportionately impact locals. I purchased a parking pass in good faith, carefully planned my visits, and followed the rules, yet I have been repeatedly penalized with charges for parking sessions under two hours. These charges undermine the purpose of the pass and disregard the contributions of hardworking locals like myself. The constant fine print changes and overly restrictive policies create unnecessary stress for residents who are trying to engage in and support the community. Jane, who works for TOV parking, has been extremely helpful, acknowledged that many locals share these frustrations. This is a systemic issue that demands immediate attention. I urge the Town of Vail to reimburse any of the charges for parking under two hours and to implement free two-hour parking with a local pass every day—including weekends, holidays, and peak days. As you know, work does not stop for these days! These steps are the least the Town can do to support those of us who are actively contributing to the vibrancy and success of this community. It’s time for Vail to prioritize its locals, not penalize them. I expect meaningful action on this matter and look forward to your response. Sincerely, Jessie Kutschke Operations Manager | Malia Cox Nobrega (972) 281-9429 jessie@vailluxurygroup.com WE WILL NEVER ASK YOU TO WIRE MONEY OR PROVIDE WIRING INSTRUCTIONS Beware of phishing emails requesting a bank wire. Please call your lender, title company or closing attorney to 13 confirm any wiring instructions over the phone. 14 AGENDA ITEM NO. 4.1 Item Cover Page DATE:January 21, 2025 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Contract Award AGENDA SECTION:Consent Agenda (6:10pm) SUBJECT:Resolution No. 5, Series of 2025, A Resolution Approving an Intergovernmental Agreement between the Town of Vail ("The Town") and US Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives (The "ATF") SUGGESTED ACTION:Approve, approve with amendments, or deny Resolution No. 5, Series of 2025. VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Town Council Memo ATF K9 Resolution NO. IGA ATF ATF National Canine Division Program Application Package 004_1 15 January 8, 2025 To:Vail Town Council Through:Russ Forrest Town Manager Ryan Kenney Chief of Police From:Justin Liffick Deputy Chief of Police Subject:Intergovernmental Agreement between the Town of Vail and Bureau of Alcohol, Firearms and Tobacco (ATF) for Bomb/Accelerant Detection Canine The Vail Police Department is requesting that Town Council permit the Town Manager to enter into an intergovernmental agreement with the ATF to receive a bomb/accelerant trained canine. The agreement would provide a specialized trained canine to detect bomb and accelerants and join a National Response Team (regionally deployed). The attached IGA agreement outlines the parameters for the individual handler, Vail Police Department, as the Agency, and the ATF. There is no cost to receive or train the canine and handler. The canine and handler will be provided the canine and training by the ATF. Vail Police and the Town are responsible for converting a police vehicle to accommodate a canine, approximately $3,500.00, the care and maintenance of the canine. If Council agrees to the IGA, Vail PD will select a canine handler and submit the required paperwork through the Special Agent in Charge of the ATF Denver Field Office. If approved, the paperwork package will be submitted to ATF Headquarters in Washington D.C. for final approval. VPD will be place in a queue and receive acceptance. Unfortunately, there is not a specific timeframe for approval. Currently, the only trained bomb/accelerant detection canines are in Jefferson County Sheriff’s Office or Colorado Bureau of Investigation in Denver. The distance and unavailability become a significant burden on law enforcement. Acquiring such an asset would be beneficial to the Town of Vail for the numerous special events that occur in our town, further providing the safety and security to our community. 16 RESOLUTION NO. 5 Series of 2025 A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF VAIL (THE “TOWN”) AND U.S. DEPARTMENT OF JUSTICE BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES (THE “ATF”) WHEREAS, the Town and the ATF wish to enter into an agreement to allow for the Town to utilize the services offered by the ATF National Canine Division, pursuant to the terms set forth in the Intergovernmental Agreement, attached hereto as Exhibit A and incorporated herein by this reference (the “IGA”). NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL: Section 1. The Town Council hereby approves the IGA in substantially the same form attached hereto as Exhibit A, and in a form approved by the Town Attorney, and authorizes the Town Manager to execute the IGA on behalf of the Town. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town of Vail Town Council held this 21st day of January 2025. _________________________ Travis Coggin, Mayor ATTEST: _____________________________ Stephanie Kauffman, Town Clerk 17 U.S. Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives National Center for Explosive Training and Research National Canine Division www.atf.gov Dear Perspective Agency, Thank you for your interest in partnering with the ATF National Canine Division (NCD). In this package you will find a “draft” Intergovernmental Agreement (IGA), Canine Program Application, and procedural flow chart. It’s important to note, that ATF’s Canine programs are in high demand, require extensive review, and complete concurrence during the selection process. To initiate formal submission into the program, the following process and chain of communications must be followed in the order below: 1)The handler/requesting agency must complete the attached application, review the IGA requirements, and submit the application for consideration to their local ATF Field Office. 2)Once the local ATF Field Office Resident Agent in Charge and/or Group Supervisor has concurred with the requestor’s application, they will submit the application to the Field Division (FD) Special Agent in Charge (SAC) for final approval. 3)Once final approval is granted by the FD, the SAC will submit the requestors approved application and any subsequent documents to the National Canine Division Chief and Academy Branch Chief. 4)Upon receiving all required documentation and prior concurrences, NCD will confirm approvals and place the application in que for potential class selection. 5)NCD will maintain a roster of applying agencies coinciding with their respective FD’s and submit the roster to the applicable SAC. The SAC, along with their management team, will prioritize the roster and identify the agency to grant a position in one of NCD’s programs. 6)If selected, NCD will schedule an interview to review contents of the IGA and execute the IGA prior to the iteration start date. It is imperative for consideration into one of ATF NCD’s programs, the order of concurrences and submissions be completed as listed to prevent delays in the process. Please direct all program inquiries, applications submissions or status requests to: NCD-Canine-Applications@atf.gov. 18 Complete Application and Review IGAStep 1 •Once completed, submit application for consideration to your local ATF Field Office. ConcurrenceStep 2 •Once your local field Office has approved the application submission, it will be submitted to the local Field Division for final approval by the SAC. Final SubmissionStep 3 •Once all concurrrences have been completed, the application will be submitted to NCD via email at NCD-Canine-Applications@atf.gov. •NCD leadership will verify concurrences and place candidates in the que for potential class selection. SelectionStep 4 •Once a course schedule has been established, NCD leadership will submit potential candidate rosters to the applicable SACs. •The SACs and their management team will prioritize the rosters and identify the candidates being selected for one of NCD's programs. Final InterviewStep 5 •NCD will then conduct a final interview with the selected candidates to review the contents of the IGA. •Once review and concurrence is completed NCD and the candidate/agency will execute the IGA prior to the iteration start date. 19 ________________________________________________________________________________________ National Canine Division Application Form Date Field Division Program Agency Name Address City State Zip code Point of Contact for this application Title/Rank First Name Last Name Phone Number Email Agency Statistics from the past four years Enter statistics based on the applicable course selected above ACCELERANT Total Fire Investigations Total Structure Fire Investigations Percent determined Arson EXPLOSIVES Total Explosives Recoveries Total Explosives Incidents Amount ($) of Property Damage Total Injuries Total ATF Cooperative Investigations Total Deaths Total ATF NRT Investigations 20 Agency Requirements and Concurrence 1.Providing the handler/canine team with a dedicated vehicle equipped with air conditioning,heating, and a built-in cage for the canine? 2.Covering all veterinary and emergency care expenses for the canine during its working life,including required annual exams and vaccinations? 3.Purchasing all food for the canine during its working life? 4.Purchasing the required maintenance training equipment for the canine team, including, but not limited to, metal cans, disposable gloves, various distracter materials, training aids (ignitable liquids, etc.)? 5.Sending the handler/canine team to annual recertification training, covering all travel, per diem,rental car, and lodging expenses? 6.Making the handler/canine team available to attend semi-annual in-service training, and covering all travel-related costs? 7.Making available the use of the handler/canine team for designated ATF investigations, including NRT callouts? 8.Making available the use of the handler/canine team for other designated federal, state, and local investigations? 9.Ensuring that the canine lives in the handler’s residence? 10.Ensuring that the canine’s health and physical fitness is maintained in accordance with ATFprotocols? 11.Ensuring that the ATF training protocols and methodologies are strictly followed to ensure thecanine proficiency is maintained? 12.Committing the agency and handler/canine team to the Accelerant Detection Canine Program for five years? 13.Ensuring the designated handler is responsible for only the ATF-certified detection canine, and no other canine during his/her 5-year program commitment? 14.Allowing the canine in the handler’s office setting? 15.Be willing to have the handler/canine team work a minimum of 50 fire scenes each year? (ADCP) 16.Providing the handler with a non-contaminated explosives bunker and purchasing fresh explosives samples for training? (EDCP) 17.Has your agency reviewed and agreed to the terms outlined in the sample Intergovernmental Agreement (IGA) with the ATF? Agency agrees to all terms listed above 1.Maintain the canine inside your residence, and ensure that the canine will not be continuously crated in your home? 2.Train/maintain the canine seven days a week, 365 days a year, following the ATF canine training protocols? 3.Provide the canine with a safe environment? 4.Protect the canine from physical injury, both on and off duty? 5.Handle only the ATF-certified detection canine during your 5-year program commitment? Perspective handler agrees to all terms listed above Signing Authority First Name Signing Authority Last name Prospective Handler First Name Prospective Handler Last Name Signing Authority Signature Prospective Handler Signature 21 Please return the application via email to: NCD-Canine-Applications@atf.gov ATF Field Division Approvals: Resident Agent in Charge (RAC), Group Supervisor (GS), Special Agent in Charge (SAC) RAC/GS First Name RAC/GS Last name RAC/GS Signature SAC First Name SAC Last Name SAC Signature 22 INTERGOVERNMENTAL AGREEMENT BETWEEN THE BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES AND THE STATE OR LOCAL AGENCY (“AGENCY”) 1 This Intergovernmental Agreement (IGA) between the U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the State or Local Agency (“Agency”) (collectively known as the “Parties”), establishes the terms and conditions for participation in ATF’s Explosives/Accelerant Detection Canine Program (EDCP/ADCP). This IGA is a partnership between both parties, and both parties make every effort to meet the terms and conditions of this IGA in order to better serve the general public. AUTHORITY ATF enters into the agreement under the authority of 28 U.S.C. § 530C(a). DEFINITIONS Working life (or service life): A period of time determined by ATF to be the length of time an explosives or accelerant detection canine can effectively serve as an ATF EDC/ADC canine. This period of time may vary from canine to canine but will be at least five years from the date of graduation from the explosives or accelerant detection program. Initial Training: A course that provides training to an Agency’s designated handlers in explosives or accelerant detection canine work. ATF-initiated activations: Events that require the use of detection canines. Includes ATF National Response Team (NRT) activations, special events, dignitary protection, and other similar events. Transferee: An individual, usually a handler, to whom ATF transfers ownership of a detection canine. RESPONSIBILITIES ATF agrees to: a. Train the Agency’s designated handler in the ATF food reward methodology. b. Provide EDCP/ADCP training to the Agency’s designated handler. Upon successful completion of the training, the handler and assigned explosives or accelerant detection canine will receive ATF certification. ATF will provide annual recertification. In-service training will be provided as time and funding permit. c. Provide a training facility for the EDCP/ADCP handler. The training will be conducted at the ATF National Canine Division (NCD), 122 Cavalry Drive, Front Royal, Virginia or other suitable facility as determined by ATF. 23 2 d. Purchase a canine(s) for the Agency and pay the handler’s lodging expenses incurred during the initial training. ATF will reimburse the Agency and/or the handler for initial training meals at the current Federal Government per diem rate. During initial training at the NCD, ATF will provide the Agency’s handler with canine-related equipment determined by ATF to be necessary for the handler’s training. e. Provide technical oversight during course curriculum development, training, recertification, and throughout the Agency’s participation in the EDCP/ADCP. f. Provide the necessary EDCP/ADCP personnel (including an ATF forensic chemist) to evaluate, test, and certify a canine for proficiency in detecting explosives/accelerants. An ATF forensic chemist shall conduct all annual recertifications. The ATF National Canine Division (NCD) shall conduct practical evaluations during initial training and future recertifications. g. Reimburse the Agency, in accordance with Federal travel regulations and ATF orders and policy, for travel expenses incurred by the handler for ATF-initiated activations. ATF WILL NOT PAY ANY HANDLER’S SALARY, OVERTIME EXPENSES, OR OTHER EMPLOYMENT BENEFITS INCURRED AS A RESULT OF ANY HANDLER’S PARTICIPATION IN ATF-INITIATED ACTIVATIONS. h. Provide written requests (as necessary) to the Agency for the handler to provide support for ATF-initiated activations. Written requests may come in the form of memoranda, facsimile, or emails. Text messages may be used if no other communication is available. Agency agrees to: a. Ensure that a handler is available for ATF-initiated activations in consideration for the ATF-provided training. This requirement shall be in effect for the working life of the canine(s) assigned to the Agency. ATF has the discretion to grant exceptions to this paragraph, as necessary. ATF will have the latitude to check on the handler and assigned explosives and accelerant detection canine at any time to perform an evaluation. b. Pay for any handler’s salary, overtime expenses, or other employment benefits incurred as a result of any handler’s participation in training at the NCD and ATF-initiated activations. c. Ensure that the handler is available for daily training, maintenance, and care, including weekends and holidays, during the working life of the canine. d. Ensure that the handler is made available to ATF for mandatory in-service training and annual recertification seminar. The Agency will incur 24 3 all travel expenses, lodging, meals, salary, overtime expenses, and employment benefits costs for the handler for annual recertifications. e. Provide ATF approved food, monthly preventative medication, and veterinary care (after initial training), to include an annual physical, ATF and veterinary required vaccinations and testing once every 12 months, and heartworm medication for the working life of the canine. Provide adequate equipment and training aids to include, at a minimum, one explosives storage bunker for explosives detection canine teams and a Type 2 indoor or outdoor storage bunker. f. Ensure that its handler only uses ATF’s food reward methodology (or any subsequent ATF order or standard operating procedure formalizing the ATF food reward methodology), for the working life of the dog. g. Provide, at its expense, a climate-controlled vehicle fully dedicated to the handler and suitable to the handler’s working environment. This vehicle must have air conditioning, heat, an installed prefabricated cage, and a temperature monitoring and alert system. h. Ensure that the handler is not assigned to handle any other working canine (other than a canine provided for the handler’s use by ATF) for the duration of handler’s participation in ATF’s EDCP/ADCP. i. Ensure that the handler houses the canine inside the handler’s residence. Handlers must comply with all canine handling requirements communicated to the handler by ATF during initial training, in-service training, and annual recertification. ATF has the discretion to grant exceptions to its handling requirements, if necessary. j. Ensure that handler has a contained and/or fenced area to secure working canine at their residence. When not in secured outside area or inside the handler’s residence, the canine will be secured on a leash with proper identification. k. Comply with any ATF denial of any individual selected to attend EDCP/ADCP training. l. Ensure that the handler has access to a laboratory capable of conducting comprehensive analysis of explosives/accelerants and an accredited bomb squad and/or ATF certified explosives specialist for EDC handlers. m. Provide ATF all canine monthly training logs and monthly reports related to canine deployment and utilization and report to Bomb Arson Tracking System (BATS) as required. n. Ensure that the canine, which is the property of ATF, will not be used by the Agency, the handler, or any other party for private use, personal financial gain, or for any non-law enforcement purpose that does not directly benefit the Agency or ATF while in service and throughout retirement. 25 4 o. Abide by the requirements of ATF orders and standard operating procedures as they affect Agency’s responsibilities under this IGA. GENERAL GUIDELINES a. Agency personnel participating in the EDCP/ADCP shall comply with the following regulations and policies, both during the initial training at the NCD, in-service training, annual recertifications, and ATF-initiated activations: the Department of Justice Use of Force Policy Statement; the ATF Employee Ethics and Responsibilities Policy (ATF Order 2130.2A); Title 5, Code of Federal Regulations Parts 735 and 3801; the Justice Property Management Regulations (DOJ Order 2400.3); and the ATF Investigative Policies, Procedures and Techniques (ATF Order 3210.7D), which includes supervisory controls. b. Agency personnel participating in the EDCP/ADCP must be certified as peace officers within their jurisdiction in good standing and in compliance with the physical requirements of the Agency. Agency personnel participating in the EDCP/ADCP shall qualify with the firearms issued to them by the Agency and comply with Agency’s proficiency standards. Agency personnel will be prohibited from carrying firearms during the initial training at NCD, in-service training, and annual recertifications unless required by ATF. c. An Agency handler authorized to use ATF-owned or leased vehicles will be provided with policies concerning the use and care of Government-owned vehicles. ATF-owned or leased vehicles may only be used for official Federal Government purposes. An Agency handler will be provided with the following policies with which an Agency handler must comply: Property and Fleet Management Program (ATF Order 1850.2F) and the Criminal Enforcement General Information (ATF Order 3000.1E, specifically Chapter C, paragraph 42). d. Agency handlers transporting explosives or hazardous materials shall be in compliance with all Federal laws and regulations and ATF policies. e. Agency personnel participating in the EDCP/ADCP must disclose any potential impeachment information specified in ATF Order 9410.1A, Giglio Policy, paragraph 6. Potential impeachment information may bar Agency personnel from participating in the EDCP/ADCP. FUNDING ATF’s responsibilities under the IGA are subject to the availability of appropriated funds and Federal law, regulation, and policy. 26 5 PENALTIES AND DISPOSITION ATF may remove any canine from the Agency, withdraw certification, require reimbursement for the cost of the canine and all training expenses, or recommend rescission of deputization (if applicable) of Agency’s handler upon the occurrence of any of the following events: a. Handler or canine is not performing according to the standards and protocols of the EDCP/ADCP. b. Health and welfare of the canine is compromised. c. Handler or Agency has failed to comply with any requirements under this IGA. d. Any violation of terms or conditions of this IGA or with any current regulation or policy referenced under this IGA. The parties acknowledge that the canine is the property ATF and that only ATF may determine the final disposition of any canine assigned pursuant to this IGA. Neither the Agency nor the handlers may claim ownership of a canine without an official, written determination by ATF, which retains ownership of all canines assigned pursuant to this IGA until ATF determines that ownership of a canine may be transferred to an individual other than ATF (preferably a handler). Such a transfer will be memorialized in an agreement executed between ATF, the Agency, and the handler (or the individual to whom ownership of the canine is transferred). Upon transfer of ownership, the transferee shall be solely responsible for the canine’s health and welfare. The transferee shall be prohibited from using the canine for profit, law enforcement, or any purpose other than companionship. EFFECTIVE DATE, MODIFICATIONS, AND TERMINATION This IGA is effective upon the date the last party signs below. The IGA will be renewed every five years. Modifications must be made in writing. The parties agree that updates and policies discussed in the IGA shall be automatically incorporated into this IGA. This IGA may be terminated upon 60 days’ written notice to the other party. The responsibilities of the parties shall run from the effective date of this IGA through the working life of all canines provided to the Agency, unless the IGA is terminated at an earlier date. Each signatory below represents that he/she has the authority to bind his/her Agency. Both parties recognize that this IGA shall be binding upon the parties regardless of any changes in management or in the authority of the signatories below to bind the respective parties. 27 6 __________________________________________ __________________ (“Agency”) Date ___________________________________________ __________________ (“Agency”) Date __________________________________________ __________________ Chief, National Canine Division - ATF Date 28 AGENDA ITEM NO. 4.2 Item Cover Page DATE:January 21, 2025 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Resolution AGENDA SECTION:Consent Agenda (6:10pm) SUBJECT:Resolution No. 6, Series of 2025, A Resolution Approving a Memorandum of Understanding for the Use of Genasys Evac/Protect in Eagle County SUGGESTED ACTION:Approve, approve with amendments, or deny Resolution No. 6, Series of 2024. VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Town Council Memo Genasys Resolution_6_2025_GENASYS.pdf MOU - Commitment to Use Genasys Evac - Final 29 January 9, 2025 To:Vail Town Council Through:Russ Forrest Town Manager Ryan Kenney Chief of Police From:Marc Wentworth Vail Public Safety Communications Center Subject:Memorandum of Understanding between the Town of Vail and Eagle County Emergency Response Agencies The Vail Public Safety Communications Center is requesting that Town Council permit the Town Manager to enter into a memorandum of understanding with all Eagle County Emergency Response agencies to support the use of Genasys emergency evacuation and notification software. The agreement ensures that all fire, EMS and law enforcement agencies in Eagle County will support the training and use of this software to plan, execute, and communicate emergency evacuations in Eagle County. The attached MOU outlines the responsibilities and obligations of the Vail Police Department, Vail Fire and Emergency Services and Vail Public Safety Communications. There is no cost to the town or it’s agencies in this agreement, the Eagle County 911 Authority Board has fiscal responsibility for the software. This software will allow VPSCC staff to enter active evacuations into the live map which can then be messaged in real time to the citizens of Vail and Eagle County. The live maps shows evacuation routes, evacuation centers, medical facilities and other important information in real time over Eagle County’s ECEmergency.org website. Use of this software is beneficial for the safety and security of our community when needed during emergency evacuations. 30 RESOLUTION NO. 6 Series of 2025 A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING FOR THE USE OF GENASYS EVAC/PROTECT IN EAGLE COUNTY WHEREAS, Eagle County, Colorado, Eagle County Sheriff’s Office, Eagle County 911 Authority, Vail Police Department, Avon Police Department, Eagle Police Department, Basalt Police Department, Vail Public Safety Communications Center, Vail Fire & Emergency Services, Eagle River Fire Protection District, Greater Eagle Fire Protection District, Gypsum Fire Protection District Roaring Fork Fire Rescue Authority, and Rock Creek Volunteer Fire Department wish to enter into an Memorandum of Understanding, as set forth in Exhibit A, attached hereto and incorporated herein by this reference (the "MOU"), for use of Genasys Evac/Protect in Eagle County. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Town Council hereby approves the MOU in substantially the same form as attached hereto as Exhibit A, and in a form approved by the Town Attorney, and authorizes the Town Manager to execute the MOU on behalf of the Town. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 21st day of January 2025. _________________________ Travis Coggin, Mayor ATTEST: Stephanie Kauffman, Town Clerk 31 Agenda Item Details Public Content Administrative Content Executive Content Meeting Jan 01, 2050 - *****Signature Workflow***** Category B. County Manager Subject 82. Memorandum of Understanding for the Use of Genasys Evac/Protect in Eagle County Access Public Type Action (Consent) Preferred Date Dec 13, 2024 Absolute Date Dec 31, 2024 Fiscal Impact No Budgeted No Budget Source na Recommended Action Approve/sign Prepared By: Birch Barron Department: Emergency Management Executive Summary: Genasys Evac/Protect is a mapping platform for use during emergencies and evacuations. This platform is funded by the Eagle County 911 Authority Board and will be used by all public safety agencies and Eagle County as a public information and planning tool during large-scale emergencies. This Memorandum of Understanding outlines the responsibilities and obligations of each of Eagle County's public safety entities with regard to the use of the Genasys Evac/Protect platform. There is no fiscal obligation associated with this Memorandum of Understanding. Reviewing Attorney: Ben Morris County Manager signature?: Yes Many signatures are involved. Birch Barron will share primary signatories and contact information with Tracy Stowell. 12/11/24, 2:41 PM BoardDocs® Plus https://go.boarddocs.com/co/eagleco/Board.nsf/Private?open&login#1/232 MEMORANDUM OF UNDERSTANDING FOR THE USE OF GENASYS EVAC / PROTECT IN EAGLE COUNTY Between Eagle County, Colorado, Eagle County Sheriff’s Office, Eagle County 911 Authority, Vail Police Department, Avon Police Department, Eagle Police Department, Basalt Police Department, Vail Public Safety Communications Center, Vail Fire & Emergency Services, Eagle River Fire Protection District, Greater Eagle Fire Protection District, Gypsum Fire Protection District Roaring Fork Fire Rescue Authority, AND Rock Creek Volunteer Fire Department This Memorandum of Understanding (“MOU”) sets forth terms for use and sharing of evacuation services purchased by the Eagle County 911 Authority Board, and is made by and between Eagle County, Colorado, a body corporate and politic (“County”), Eagle County Sheriff’s Office, an Office serving the County of Eagle, a body corporate and politic, Eagle County 911 Authority, a separate legal entity created by intergovernmental agreement under Title 29, C.R.S., Vail Police Department, a department of the Town of Vail, a Colorado home rule municipal corporation, Avon Police Department, a department of the Town of Avon, a Colorado home rule municipal corporation, Eagle Police Department, a department of the Town of Eagle, a Colorado home rule municipal corporation, Basalt Police Department, a department of the Town of Basalt, a Colorado home rule municipal corporation, the Vail Public Safety Communications Center, a department of the town of Vail, a Colorado home rule municipal corporation, Vail Fire & Emergency Services, a department of the Town of Vail, a Colorado home rule municipal corporation, the Eagle River Fire Protection District, a Title 32, C.R.S. fire protection district, the Greater Eagle Fire Protection District, a Title 32, C.R.S. fire protection district, the Gypsum Fire Protection District, a Title 32, C.R.S. fire protection district, Roaring Fork Fire Rescue Authority, a separate legal entity created by intergovernmental agreement under Title 29, C.R.S., and the Bond/McCoy Volunteer Fire Department, Inc., a Colorado nonprofit corporation d/b/a Rock Creek Volunteer Fire Department (hereinafter sometimes collectively referred to as the “Parties” or generically and individually as a “Party”). 33 Background During emergency evacuations, it is critical that information is effectively communicated from Incident Command to the 911 Dispatch center and from 911 Dispatch to the public. Genasys Evac / Protect is a platform designed to help response agencies plan and communicate critical evacuation and incident information in real-time. Genasys Evac / Protect consists of a web-based mapping and information-sharing platform for emergency personnel, printable mapbooks for first responders, and a public-facing emergency map. Purpose This MOU sets forth the terms and understanding between partner agencies for the purposes of sharing and cooperating in regard to evacuation services purchased by the Eagle County 911 Authority Board. Specifically, this MOU will establish a relationship between entities within Eagle County's emergency response system and set forth the responsibilities and obligations of the Parties with regard to the use of the Genasys Evac / Protect platform. It also ties the Parties to the Genasys Software as a Service (SaaS) Agreement, as required by Genasys, Inc. as a condition for use of its product. Parties to this MOU are listed above. Responsibilities and Obligations of the Parties ● Eagle County 911 Authority Board o Provide funding for and enter into contract with the Genasys Evac /Protect platform as an essential component of Eagle County's evacuation and emergency public notification system ● Law Enforcement and Firefighting agencies within Eagle County o Use Genasys Evac / Protect as a planning tool to improve emergency evacuations within each agency's jurisdiction o Ensure that the zones and information in Genasys Evac / Protect are up-to-date and reflect each jurisdiction's planning efforts o Train appropriate staff on how to use Genasys Evac / Protect to support evacuation planning and communication during emergencies o During incidents: Use the Genasys Evac / Protect online map and printed map books to help Incident Command communicate critical information to 911 Dispatch, including evacuation zones, road closures, evacuation center location, and other key information ● 911 Dispatch/Public Safety Answering Point (Vail Public Safety Communications Center) o Train appropriate staff on how to use Genasys Evac / Protect for notification and public communications during emergencies 34 o During incidents: Use Genasys Evac / Protect to update the status of evacuation zones, road closures, evacuation center location, and other key information ● Eagle County Emergency Management o Host the Genasys Evac / Protect map on Eagle County's public-facing emergency website o Coordinate with Law Enforcement, Fire, 911 Dispatch, and the 911 Authority Board to ensure that Genasys Evac / Protect is meeting agency needs and is effectively integrated into countywide evacuation processes o Train appropriate staff on how to use Genasys Evac / Protect for public communications during emergencies o During incidents: As an incident grows in size, provide EOC support to assist 911 Dispatch in updating the status of evacuation zones, road closures, evacuation center location, and other key information Authorized System Users. Parties named in Exhibit A of the Genasys SaaS Service Agreement executed 9/17/2024 by and between Genasys, Inc., and Eagle County, Colorado shall have access to use and modify the non-public Genasys Evac software as outlined in said Agreement. As required by the terms of that Agreement, those Parties hereby consent to the Genasys, Inc. SaaS Services Agreement. Mutual Hold Harmless and Release. The Parties agree to release and hold harmless one another, their officers, employees, and insurers, from and against all liability, claims, and demands, on account of injury, loss, or damage of whatsoever nature, including, without limitation, claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever, which arises out of or is in any manner connected with this MOU. Term. The term of this MOU shall commence on the date first above written, and continue for a period of one (1) year from that date. This MOU shall automatically renew thereafter on the anniversary date hereof for additional one (1) year periods unless terminated by the Parties. Withdrawal and Termination. Any Party hereto may elect to withdraw from this MOU at any time in its sole discretion by sending a written notice to all other Parties in compliance with the Notices provision herein. This MOU may be terminated at any time by mutual agreement of all then-current Parties. Assignment. This MOU shall not be assigned by any Party without written consent of all Parties. Notices. Any notice required or permitted by this MOU shall be in writing and shall be deemed to have been sufficiently given for all purposes if sent by regular mail, postage and fees prepaid, addressed to all Parties at the principal business address for each. Such notice shall be deemed to have been given when deposited in the United States mail. 35 Integration and Amendment. This MOU represents the entire agreement between the Parties and there are no oral or collateral agreements or understandings. This MOU may be amended only by an instrument in writing signed by all Parties. Governing Law. This MOU shall be governed by the laws of the State of Colorado. Binding Effect. This MOU shall inure to the benefit of, and be binding upon the Parties, their respective legal representatives, successors, heirs, and assigns, provided however, that nothing in this paragraph shall be construed to permit the assignment of this MOU without consent of all the Parties hereto. Counterparts. This MOU may be executed in counterparts as evidenced by manual or electronic signatures from the governing body or authorized agent of each participating agency or entity listed herein. IN WITNESS WHEREOF, the Parties have executed this MOU on ________________. COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its COUNTY MANAGER By: ______________________________ Jeff Shroll, County Manager EAGLE COUNTY 911 AUTHORITY By: ________________________________ Name: _____________________________ Title: ______________________________ 36 EAGLE COUNTY SHERIFF’S OFFICE By: ________________________________ Name: _____________________________ Title: ______________________________ TOWN OF VAIL - VAIL FIRE AND EMERGENCY SERVICES, VAIL POLICE DEPARTMENT, VAIL PUBLIC SAFETY COMMUNICATIONS CENTER By: ________________________________ Name: _____________________________ Title: ______________________________ TOWN OF AVON POLICE DEPARTMENT By: ________________________________ Name: _____________________________ Title: ______________________________ TOWN OF EAGLE POLICE DEPARTMENT By: ________________________________ Name: _____________________________ Title: ______________________________ 37 TOWN OF BASALT - BASALT POLICE DEPARTMENT By: ________________________________ Name: _____________________________ Title: ______________________________ EAGLE RIVER FIRE PROTECTION DISTRICT By: ________________________________ Name: _____________________________ Title: ______________________________ GREATER EAGLE FIRE PROTECTION DISTRICT By: ________________________________ Name: _____________________________ Title: ______________________________ GYPSUM FIRE PROTECTION DISTRICT By: ________________________________ Name: _____________________________ Title: ______________________________ 38 ROARING FORK FIRE RESCUE AUTHORITY By: ________________________________ Name: _____________________________ Title: ______________________________ ROCK CREEK VOLUNTEER FIRE DEPARTMENT By: ________________________________ Name: _____________________________ Title: ______________________________ 39 AGENDA ITEM NO. 4.3 Item Cover Page DATE:January 21, 2025 SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Resolution AGENDA SECTION:Consent Agenda (6:10pm) SUBJECT:Resolution No. 7, Series of 2025, A Resolution Approving an Amended Operating Plan and Budget of the Vail Local Marketing District, for its Fiscal Year January 1, 2025 through December 31, 2025 SUGGESTED ACTION:Approve, approve with amendments, or deny Resolution No. 7, Series of 2025. VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2025 Resolution No #7 VLMD 1st Supplemental Budget 250121 VLMD 1st Supplemental Budget Memo 2025 VLMD First Supplemental Presentation 40 Resolution No. 7, Series of 2025 RESOLUTION NO. 7 Series of 2025 A RESOLUTION APPROVING AN AMENDED OPERATING PLAN AND BUDGET OF THE VAIL LOCAL MARKETING DISTRICT, FOR ITS FISCAL YEAR JANUARY 1, 2025 THROUGH DECEMBER 31, 2025 WHEREAS, the Town of Vail (the “Town”), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the “Charter”); and WHEREAS, the members of the Town Council of the Town (the “Council”) have been duly elected and qualified; and WHEREAS, C.R.S. §29-25-110 requires the Council’s annual approval of the operating plan the Vail Local Marketing District (the “VLMD”). NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Council approves the operating plan and budget of the VLMD for marketing related expenditures beginning on the first day of January, 2025, and ending on the 31st day of December, 2025. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 21st day of January 2025. ________________________________ Travis Coggin, Mayor ATTEST: _________________________ Stephanie Kauffman, Town Clerk 41 To: Vail Town Council From: Vail Local Marketing District Date: January 21, 2025 Subject: Resolution 7: Vail Local Marketing District 2025 Amended Operating Plan and Budget I.BACKGROUND The Vail Local Marketing District is responsible for marketing and promoting Vail to attract overnight destination guests primarily during the non-winter timeframe, creating economic vitality by attracting visitors who stay longer and spend more, thereby increasing sales tax and lodging tax revenues. Performance against these goals is measured through data, including occupancy, average daily rate, and lodging and sales tax revenues. The Vail Local Marketing District Advisory Council (VLMDAC) is the appointed body that provides strategic policy direction to staff and contracted vendors in pursuit of these goals. The VLMDAC is also responsible for providing education and awareness of Vail’s stewardship principles in order to protect our natural and built assets and celebrate the values of the Vail community. On September 17th, the Vail Local Marketing District Advisory Council (VLMDAC) presented the Vail Local Marketing District (VLMD) with the 2025 marketing operating plan and budget. During that meeting, the VLMD expressed concern for the sustainability of the $9.5M budget but did vote to approve the 2025 operating plan and budget due to the timing constraints set by the statute. During the September 17th meeting, the VLMDAC committed to returning to the VLMD in January with a modified operating plan and budget based on the request to match expenditures to budgeted revenues, and to address the outcomes of a strategic plan being developed. Since then, the VLMDAC approved a three-year strategic plan. The strategic plan’s action plan development will be taking place in Q1 of 2025. II.SUMMARY This memo provides the supplemental budget reduction request for the VLMD 2025 operating plan. Informed by the priorities developed in the Discover Vail Strategic Plan, an amended 2025 operating plan and budget was created, reviewed and approved at a special meeting of the VLMDAC held on January 13, 2025. The amended budget is detailed below and in the attached presentation. 42 Town of Vail Page 2 III.DISCOVER VAIL STRATEGIC PLAN The Discover Vail Strategic Plan (2025–2027) sets a comprehensive framework to guide the Vail Local Marketing District Advisory Council's (VLMDAC) expanded scope to promote tourism, foster economic development, and enhance visitor experiences. Purpose: The plan outlines strategic initiatives to: •Organize, promote, and manage public events. •Support business recruitment, development, and retention. •Coordinate tourism promotion activities. •Enhance and facilitate visitor experiences. Goals: •Ethos: The foundation that guides core character, values, and strategic direction for Vail. •The Vail Experience: Influence, curate and deliver authentic and welcoming year-round moments that create loyalty and nurtures a deep connection for Vail. •Community Vitality: Foster an economically thriving and engaged “Vail for Everyone”. Alignment to Town Council Strategic Plan: The strategic plan aligns closely with the Town Council Strategic Plan objectives for community vitality, workforce support, an authentic Vail experience, and environmental sustainability and further detailed in the presentation attached. Next Steps: The strategic action plan development timeline, as outlined in the presentation, includes internal and external action planning, action plan finalization, and integration with the 2026 operating plan. The action plan will also identify priorities to be addressed in 2027 and 2028. This plan emphasizes sustainable growth and a unified vision for Vail as a premier, year-round destination. IV.BUDGET DETAIL Budgeted revenue for 2025 remains unchanged from the approved budget. Total revenue is projected at $5,581,000 including $5.5M of lodging tax collections and $63.0K of interest earnings. After several years of growth, during a period of inflation and increased visitation, occupancy and average daily rates (ADRs) are normalizing. 2024 year-to-date lodging tax collections through November are trending 0.4% above 2023 collections and are forecasted to end the year 0.2% above 2023. 2025 budgeted lodging tax revenues of $5,518,000 represent a 1.0% increase from 2023 actual collections, and a 0.3% increase from the 2024 forecast. This projection is conservative and consistent with the town’s current projected sales tax revenue for 2025. Staff will continue to review 2025 projections throughout the year. 43 Town of Vail Page 3 The current 2025 approved budget includes operating expenditures (excluding event funding) of $6,503,000. This supplemental budget proposes to reduce operating expenditures by $922,000 to $5,581,000, which is equal to total projected revenue. This is a 16% decrease from the 2024 amended budget, and a 14% decrease from the current approved budget. Additional detail on the proposed expenditure reductions is included below: •Total decrease, one-time expenses $922,000 o New Brand/Logo Launch:$490,000 o Fee Reductions (AI, Content, Web): $85,042 o International Trade Show Booth: $50,000 o YouTube Video Production:$170,000 o Database Subscriptions: $31,565 o Paid Media: $95,393 Budgeted expenditures also include a $3,000,000 placeholder for special event funding, unchanged from the current 2025 approved budget. This includes $2,982,500 for events and a $17,500 business license administrative fee paid to the General Fund (5% of business license revenue). The town council through a resolution recently extended additional responsibilities to the VLMDAC, which now provides strategic policy direction for the activities of the town’s Tourism and Economic Development department. As a first step towards that transition, staff have shifted event funding oversight to the Vail Local Market District. These expenditures are directly offset by $3,000,000 in transfers from the Town of Vail General and Marketing funds. Total proposed 2025 combined operating and event funding expenditures total $8,581,000. The 2025 ending fund balance is projected to be $3,158,303, which is 57% of revenues and is above Council’s directive of 25% of annual lodging tax revenues. V.ACTION REQUESTED OF VAIL TOWN COUNCIL The Vail Local Marketing District requests approval or approval with changes to the proposed supplemental budget, decreasing expenditures by a total of $922,000 from $9,503,000 to $8,581,000. 44 2025 PROPOSED AMENDED BUDGET SUMMARY OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCE VAIL LOCAL MARKETING DISTRICT 2024 Amended Budget 2024 Forecast 2025 Budget 1st Supplemental Proposed 2025 Amended Budget Income Lodging Tax 5,395,000 5,500,571 5,518,000 5,518,000 Interest Income 65,000 240,000 63,000 63,000 Total Income 5,460,000 5,740,571 5,581,000 - 5,581,000 Operating Expense Destination 1,600,900 1,600,900 1,389,166 (85,172) 1,303,994 Reduce Destination Digital Marketing (-$85.2K) International 172,300 172,300 253,000 (50,000) 203,000 Decrease international trade shows (-$50.0K) Front Range 289,560 289,560 418,485 418,485 Groups and Meetings 320,667 320,667 368,290 368,290 Public Relations Expenses 156,500 156,500 156,500 156,500 Content/Influencer Strategy 142,533 142,533 161,060 (29,160) 131,900 Reduce organic social media strategy and transition (-$29.2K) Photography / Video 390,200 370,200 390,200 (210,000) 180,200 Eliminate video strategy and management associated with Brand Launch (-$170.0K); Reduce Winter photo/video asset capture (-$40.0K) Research 232,115 226,215 221,979 (59,000) 162,979 Eliminate future partner - destination analyst (- $59.0K) Website 455,030 425,030 462,566 (20,370) 442,196 Reduce web enhancements (-$10.0K) and website content / optimization (-$10.4K) Admin Miscellaneous 27,600 27,600 22,725 22,725 Email Marketing 383,700 383,700 387,850 387,850 Branding 779,500 548,500 506,000 (231,000) 275,000 Eliminate 2025 (-$131.0K) brand launch and 2026 campaign concept/production (-$100.0K) Contingency 250,000 5,000 100,000 100,000 Database Warehousing and Research 500,227 450,227 523,424 (11,565) 511,859 Eliminate AI facilitation (-$20.0K); Increased cost of Data Subscriptions ($8.4K) In-Market Marketing 116,315 110,715 273,080 (200,000) 73,080 Eliminate in-resort brand launch (-$200.0K) 45 2025 PROPOSED AMENDED BUDGET SUMMARY OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCE VAIL LOCAL MARKETING DISTRICT 2024 Amended Budget 2024 Forecast 2025 Budget 1st Supplemental Proposed 2025 Amended Budget Marketing Sponsorship 50,000 50,000 50,000 50,000 Professional Fees Legal and Accounting 32,000 32,000 32,000 32,000 Advertising Agent Fees 244,681 244,681 267,354 (10,221) 257,133 Reduce Media Fees ($-10.2K) Town of Vail Service Fees 231,512 231,512 258,512 (15,512) 243,000 True-up reimbursement for Digital Content Creator to align with contract (-$15.5K) Vail Valley Partnership Service Fees 105,722 105,722 108,309 108,309 Professional Fees - MYPR 152,500 152,500 152,500 152,500 Total Professional Fees 766,415 766,415 818,675 (25,733) 792,942 Total Operating Expense 6,633,563 6,046,063 6,503,000 (922,000) 5,581,000 Surplus (Deficit) from Operations (1,173,563) (305,492) (922,000) 922,000 - Special Events Business License Fees - - 350,000 350,000 Transfer from General Fund for Special Events - - 2,650,000 2,650,000 Placeholder for Special Event Funding - - (2,982,500) (2,982,500) Business License Administration Fee - - (17,500) (17,500) Net Increase/(Decrease) due to Special Events - - - - - Revenue Under/(Over) Expeditures (1,173,563) (305,492) (922,000) 922,000 - Beginning Fund Balance 3,463,795 3,463,795 2,510,628 3,158,303 Ending Fund Balance 2,290,232 3,158,303 1,588,628 3,158,303 Fund Balance (25% required)42%57%29%57% 46 DISCOVER VAIL STRATEGIC PLAN & SUPPLEMENTAL BUDGET REQUEST January 21, 2025 47 1.Discover Vail Strategic Plan and Alignment to Town Council Strategic Plan 2.Strategic Action Plan Development Timeline 3.Brand Platform Development 4.Vail Local Marketing District Budget Expectations 5.2025 Supplemental Budget Reduction Request Agenda 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 BRAND PLATFORM DEVELOPMENT 63 Brand Platform: Final Brand Positioning 64 ●Brand Platform was finalized November, 2024 ●Focus Groups will be conducted Q1 2025 on logo options ●Board decision to hold on launching a new logo in 2025 ●Will revisit launching a new brand logo as part of the 3-year Strategic Action Plan Brand Platform Development 65 VLMD BUDGET EXPECTATIONS 66 Operating Budget The annual operating budget is intended for marketing expenditures. The expenditures are not to exceed annual revenues. Contingency Undedicated funds allocated in the annual operating budget to address unforeseen costs or time-sensitive marketing opportunities. Supplemental not required. Reserves/Fund Balance (above 25% of annual revenues) VLMD reserves are intended to remain available to support unique, one-time marketing expenditures, not to support normal operating costs. Reserves/Fund Balance (below 25% of annual revenues) VLMD reserves are intended to remain available to address significant events that could negatively affect revenue (i.e. fire, recession). When utilized, these funds are to be used for one-time marketing expenditure, not to support normal operating costs. VLMD Budget Expectations ↑25% ↓ 25% 67 2025 SUPPLEMENTAL BUDGET REDUCTION REQUEST 68 2024 Preliminary Results 2024 Preliminary Results 2024 Budget 2024 Estimated Actuals Variance Lodging Tax $5,395,000 $5,500,571 $105,571 Interest $65,000 $240,000 $175,000 Total Revenue $5,460,000 $5,740,571 $280,571 Expenditures ($6,653,563)($6,046,063)$607,500 Use of Fund Balance ($1,173,563)($305,492)$868,071 Ending Fund Balance $2,290,232 (42%) $3,158,303 (47%) VLMD was budgeted to use $1.17M of reserves in 2024 but instead is forecasted to use $305.5K mainly due to expenditure savings, leaving a Fund Balance at $3.2M, 57% 69 2024 Preliminary Results Expenditures Savings Vail Brand Launch $ 201,000 Data Subscription $ 70,000 Vendor Expenses $ 91,500 Contingency $ 245,000 Estimated Total $ 607,500 70 2025 Proposed Amended Summary 2025 Revenue Projection (no change) $ 5,581,000 ● Lodging Tax revenue is forecasted at $5,518,000 ●Interest revenue is projected at $63,000 2025 Original Budgeted Expenditures $ 6,503,000 2025 Proposed Amended Budgeted Expenditures $ 5,581,000 71 2025 Proposed Amended Budget Original Budget $ 6,503,000 Reduction of one time spends ($ 922,000) New Brand/Logo Launch ($ 490,000) Fee Reductions (AI, Content, Web) ($ 85,042) International Trade Show Booth ($ 50,000) YouTube Video Production ($ 170,000) Database Subscriptions ($ 31,565) Paid Media ($ 95,393) Adjusted 2025 Budget $ 5,581,000 Use of Fund Balance $ 0 72 Future expenditures will align with outcomes of the Strategic Action Plan Use of Reserves: 2023: $ 437.5K 2024: $ 305.5K 2025 Budget: $ 922K Amended 2025: $ 0 VLMD Revenue / Expenditures 73 Available Reserves above 25%: $ 1,705,803 Vail Local Marketing District Reserves 57% 29% 57% 74 Action Requested of Vail Local Marketing District Approve or approve with changes the 2025 supplemental budget request to reduce the VLMD budget by $922,000 from $6,503,000 to $5,581,000. 75 76 AGENDA ITEM NO. 4.4 Item Cover Page DATE:January 21, 2025 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Agreement AGENDA SECTION:Consent Agenda (6:10pm) SUBJECT:Contract Award to Emergent Execs for Leadership Development Program SUGGESTED ACTION:Authorize the Town Manager to enter an agreement, in a form approved by the Town Attorney, with Emergent Execs for a Leadership Development Program, not to exceed $138,500. VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2025-01-21 Council Memo, Leadership Dev Agreement 77 To: Town Council From: Human Resources & Risk Management Department Date: January 21, 2025 Subject: Contract Award for Leadership Development Program – Emergent Execs I. INTRODUCTION In spring 2024, the Town Council established a strategic goal to support access to leadership development training for Vail’s workforce. In summer of 2024, the Town issued an RFP seeking qualified firms to develop a comprehensive leadership development program that would initially be delivered within the Town of Vail employee base with the potential to expand the program to the greater community in later years. II. PROGRAM SUMMARY AND RECOMMENDATIONS After review of more than 30 responses to the request for proposals, town staff worked with Emergent Execs to design a robust leadership academy program that provides leadership development education for employees at all levels of the organization. This includes the development of a competency model and customized learning curriculum to ensure that all training is deeply rooted in and reflective of TOV’s values, goals, and objectives. This work also supports broader organizational and cultural enhancement efforts and sets a foundation for ongoing talent acquisition and management strategies. Emergent Execs specializes in leadership training, executive coaching, and management training solutions, serving a wide range of clients from Fortune 500 companies to large government agencies. A group of Town of Vail leaders participated in a sample training and planning session with Emergent Execs as part of the selection process. An initial program, “Pathways to Excellence: Leading Self” will focus on self-awareness, emotional intelligence, and intentionality to cultivate habits for long term success. Participants will leave this training with a personalized leadership action plan that builds on their strengths and establishes a foundation for ongoing growth. Participants may progress into advanced learning tracks under the program “Pathways to Excellence: Advancing Your Leadership Journey”, featuring custom curriculum designed to develop specific leadership competencies for three distinct cohorts based on roles: Individual Contributor, Supervisors/Managers, and Senior Managers/Executives. This agreement with Emergent Execs provides the initial framework, curriculum development, and implementation of a comprehensive leadership development program set to kick off in early 2025. The creation and delivery of the initial program and advanced learning tracks will result in a fully developed program to support multiple cohorts and is available for future delivery by Emergent Execs and/or Town of Vail. The 2025 budget includes $125,000 for the program plus additional 78 Town of Vail Page 2 funding from the Town Manager contingency of $13,500 will provide full funding for the program at $138,500. III. ACTION REQUESTED BY THE TOWN COUNCIL Authorize the Town Manager to enter into an agreement with Emergent Execs, in a form approved by the Town Attorney, for an amount not to exceed $138,500. 79 AGENDA ITEM NO. 4.5 Item Cover Page DATE:January 21, 2025 SUBMITTED BY:Stephanie Bibbens, Public Works ITEM TYPE:Consent Agenda AGENDA SECTION:Consent Agenda (6:10pm) SUBJECT:Contract Award to Hallmark Inc for the Ford Park Retractable Bollard Project SUGGESTED ACTION:Authorize the Town Manager to enter into an agreement, in a form approved by the Town Attorney, with Hallmark Inc. for the Ford Park Retractable Bollard Project, in an amount, not to exceed $300,000.00. VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Memo 1-7-25 80 To:Town Council From:Public Works Department Date:January 7, 2025 Subject:Ford Park Retractable Bollard Contract Award I.SUMMARY The Town of Vail has $400k remaining in the Vail Pedestrian Safety budget to install two retractable bollards at the entrance to East Betty Ford Way to restrict and control vehicular access into Ford Park. The proposed bollards are retractable to allow authorized vehicles to access as needed. The project also will function as a pilot test of retractable bollards to better understand their operations and maintenance in Vail and determine if they might be appropriate in other key high pedestrian areas. Town staff advertised the project for public bid in November and received only one bid from Hallmark Inc. in the amount of $410,000. Hallmark Inc. has experience in Vail and Ford Park, and most recently completed the improvements to West Betty Ford Way. Since the bid opening town staff, the design consultant, Hallmark and the retractable bollard vender met to find savings in the project. After thoroughly vetting the project, the team was able to reduce the project installation costs to not exceed $300,000; a portion of which ($105,000) will be funded by the MMOF grant received in the fall of 2022. The project is scheduled to start at the end of April and be completed by the end of May, so that it does not interfere with any scheduled events at the Ford Park Amphitheater. The bollards themselves have a 12-16 week lead time and will need to be ordered in the next couple of weeks in order to meet that timeline. II.RECOMMENDATION Staff recommends awarding the contract to Hallmark, Inc in an amount not to exceed $300,000 in a form approved by the Town Attorney. 81 Town of Vail Page 2 Retractable Bollard Location Ford Park East Betty Ford way 82 AGENDA ITEM NO. 5.1 Item Cover Page DATE:January 21, 2025 TIME:90 min. SUBMITTED BY:Lauren Noll, Finance ITEM TYPE:Ordinance AGENDA SECTION:Public Hearings (6:10pm) SUBJECT:Ordinance No. 24, Series of 2024, Second Reading, An Ordinance Amending Chapter 4-14 of the Vail Town Code to Establish Regulatory Fees for Short-Term Rentals (6:10pm) SUGGESTED ACTION:Approve, approve with amendments, or deny Ordinance No. 24, Series of 2024 upon second reading. PRESENTER(S):Carlie Smith, Finance Director VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 213137- STR Fee Technical Memo 5-12-22 250121 STR Fee Ordinance 24 2024 STR Fee-O011625 012125 STR 2nd reading powerpoint Short Term Rental Public Comment 83 213137- STR Fee Technical Memo 5-12-22 M EMORANDUM To: Kathleen Halloran, Finance Director, Town of Vail From: Andrew Knudtsen and Rachel Shindman, Economic & Planning Systems Subject: Short Term Rental Fee Analysis; EPS #213137 Date: May 12, 2022 This technical memorandum summarizes the study supporting a fee program to be applied to short term accommodation unit (short term rental or “STR”) licensees in the Town of Vail. Economic & Planning Systems (EPS) was retained by the Town of Vail to determine a reasonable fee for this program. The analysis demonstrates a reasonable relationship between guest spending from STRs in the town and the demand for housing. The study uses 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. Guests staying in STRs spend money in the local economy. This spending is primarily in the retail, food and beverage, and recreation industries, and in turn creates local jobs. These jobs generate demand for households, which then seek housing units. Many of the jobs created are at wage levels that do not pay enough for employees to afford market rate housing in the town. The basis of this fee is therefore the gap between what employees can afford and the cost to purchase a home in the Town of Vail. The calculation also accounts for the possibility that a home used as an STR could be occupied by a local resident, and the fee is further based on the difference between the impact of guest spending in the local economy and the baseline impact of local resident spending. Rationale This regulatory fee is needed to support the local labor force and Town housing programs that sustain the tourism economy in Vail. Without an adequate supply of housing and housing support programs, the Town risks losing some of its labor supply that is essential to the businesses in which STR guests spend money during their stay. This is important, as tourism is a primary element of the Town’s economic base. EXHIBIT A 84 Memorandum: Short Term Rental Fee Analysis Page | 2 If businesses do not have an adequate labor force and if workers do not have adequate housing, the guest experience and the Town’s economy are likely to degrade. STR owners or hosts will pay an annual licensing fee under this program. The fee payers receive benefits through investment by the Town in housing for the workforce needed to sustain the visitor economy. STR owners and operators are likely to benefit from the supply of labor and from investments the Town will make using the fee revenue on housing for the local workforce. Having more housing options for the local workforce is also likely to benefit the fee payers in better customer service through increased employee retention and reduced employee turnover. Methodology This analysis uses a jobs-housing economic impact model to quantify the jobs and households supported by guest spending in STRs. The analysis begins by quantifying the jobs supported by spending. Next, several analytical steps are taken to translate the supported jobs to employees and employee-households (where a household is a group of people, related or unrelated, living in one occupied dwelling unit). The IMPLAN model (Impact Analysis for Planning) was used to estimate the relationships between spending and jobs supported. IMPLAN was developed by the Bureau of Land Management, U.S. Forest Service, and the University of Minnesota and is widely used by state and federal agencies, academic researchers, and local economic development organizations to evaluate the economic impacts of proposed policies, new industries, and land use changes. The conversion of jobs (from IMPLAN) to employee households uses analytical techniques commonly used in housing economics and affordable housing studies as discussed further in the body of this memorandum. Data Sources Analysis inputs come from the following sources: • Accommodation inventory: Town of Vail (number of units, number of bedrooms, average number of bedrooms per unit) • STR occupancy rates: Inntopia • Guest spending: Vail Lodging Guest Survey, 2017-2019 (RRC Associates) • Home prices: Multiple Listing Service (MLS) • Wages by Occupation: Bureau of Labor Statistics (BLS) • Median household income: U.S. Census (ACS 5-year estimates, Town of Vail) • Jobs per employee: 2016 Vail Employer Survey Results (RRC Associates) • Employees per household: U.S. Census (ACS 5-year estimates, Town of Vail) 85 Economic & Planning Systems, Inc. Page | 3 Guest Spending Analysis • Guest spending – Guest spending was modeled on the average expenditure across all accommodation types, with data inputs from the Vail Lodging Guest Survey averaged over the 2017 to 2019 time period (RRC Associates). The survey data provides per unit expenditures by type; based on this data, expenditures average $898 per unit per day, including $428 on food and beverage, $300 on retail/shopping, and $170 on entertainment and recreation. • Jobs supported by industry – The spending associated with guests is applied to the IMPLAN model as an “industry output” event for the three affected industries (NAICS 72 – Accommodation and Food Services, NAICS 44-45 – Retail Trade, and NAICS 71 – Arts, Entertainment, and Recreation). IMPLAN applies industry expenditure flows through its input-output model and estimates the spending and jobs supported in the 20 major industries in the North American Industry Classification System (NAICS). • Jobs to employees (multiple job holder adjustment) – An adjustment is made to acknowledge that many employees have more than one job, such as two part time jobs or a full time and a part time job. So as not to overestimate the number of employees supported, the number of jobs is reduced using a factor of 1.20 jobs per employee. This factor is specific to the Town of Vail, as reported in the 2016 Vail Employer Survey Results report (RRC Associates). • Employees by industry to occupations and wages – A NAICS industry contains a wide range of job types and wage ranges. For example, a worker in the retail NAICS sector could be an accountant (for the retailer) or retail showroom employee. The range of wages and occupations supported is better represented by the 21 Standard Occupational Classifications defined by the Bureau of Labor Statistics (BLS). The National Industry by Occupation Matrix published by the BLS provides the estimated distribution of occupations and wages for each NAICS category. The results from the IMPLAN analysis are applied to the Industry by Occupation Matrix to estimate the number of jobs by wage level supported. • Household formation – A final adjustment is made to account for the fact that many households have more than one earner. This adjustment has the effect of raising the collective income of the employees within a household, thus increasing the amount the employee-household can pay for housing and reducing the gap between their ability to pay and the cost of housing. In the Town of Vail, there are an average of 1.85 earners per household (US Census ACS 5-Year estimates). In this analysis, the first earner earns the wage derived from the economic impact analysis and allocation to occupations. The “second” 0.85 earner is assumed to earn 0.85 multiplied by average wage in the industry of the primary earner. • Tabulation of households by income range – The last step involves counting the number of households supported by income range, expressed as a percentage of Area Median Income (AMI). Given the breadth of need addressed by housing programs and policies in the Town of Vail, all households earning up to 200 percent of AMI are included for this analysis. The AMI definitions are based on the Colorado Housing and Finance Authority (CHFA) 2020 income limits for Eagle County. 86 Memorandum: Short Term Rental Fee Analysis Page | 4 Local Resident Household Analysis The last component of the analysis involves isolating the difference between guest spending and local resident household spending. To do this, the same steps outlined above are undertaken for a resident household earning the local median income of $89,987 (as reported in the U.S. Census ACS 2019 data for Vail) to document the jobs supported from household spending in the economy. This household income is input to the IMPLAN model, which applies an expenditure profile (including savings) specific to the household income range. The model then estimates the spending and jobs supported in the 20 major NAICS industries. The same steps to determine need by AMI range are completed, and this housing need is then subtracted from that of guest spending, resulting in the needs associated with guest spending above those of a local resident household. 87 Economic & Planning Systems, Inc. Page | 5 Analysis Guest Spending Guest spending was modeled on the average per-unit expenditure across all accommodation types, with data inputs from the Vail Lodging Guest Survey averaged over the 2017 to 2019 time period (RRC Associates). Within the IMPLAN model 1,000 accommodation units were modeled in order to establish an appropriate scale of analysis. Per unit and per bedroom adjustments are made later in the model to calibrate the fee. As shown in Table 1, with an average daily spending rate of $898 per unit per day, 1,000 units results in total annual spending of $327.9 million. Note that at this point in the analysis 100 percent occupancy (365 days of spending) is used. The average annual occupancy rate adjustment is applied later in the analysis. Table 1. Guest Spending Description Factors Guest Spending - All Program Units 1,000 Guest Spending (per unit per day) Food & beverage $428 Retail/shopping $300 Entertainment/recreational activities $170 Total $898 Annual Guest Spending (per unit per year) Food & beverage 365 days (100% occ.)$156,233 Retail/shopping 365 days (100% occ.)$109,539 Entertainment/recreational activities 365 days (100% occ.)$62,144 Total $327,916 Total Guest Spending Food & beverage 1,000 units $156,233,398 Retail/shopping 1,000 units $109,538,597 Entertainment/recreational activities 1,000 units $62,143,716 Total $327,915,711 Source: RRC Associates; Economic & Planning Systems 88 Memorandum: Short Term Rental Fee Analysis Page | 6 Jobs, Employees, and Households As shown in Table 2, the spending associated with 1,000 accommodation units supports 3,208.15 jobs. The industries with the most jobs are those with direct spending impacts – specifically accommodation and food services; arts, entertainment and recreation; and retail. Following total jobs, the next step is to translate jobs to employees. In today’s economy it is common for people to hold more than one job. To step down from jobs to employees, jobs are divided by a factor of 1.20 jobs per employee. As shown in Table 2, the 3,208.15 jobs supported by 1,000 accommodation units results in 2,673.46 employees after the adjustment for multiple job holders. Table 2. Jobs and Employees by Industry Supported from Guest Spending Guest Spending Description Jobs by Industry (IMPLAN Results) Employees by Category Jobs to Employee Conversion Factor 1.20 Industrial Sectors 11 Ag, Forestry, Fish & Hunting 3.87 3.22 21 Mining 0.50 0.42 22 Utilities 2.62 2.18 23 Construction 13.92 11.60 31-33 Manufacturing 1.51 1.26 42 Wholesale Trade 15.52 12.93 44-45 Retail trade 453.41 377.84 48-49 Transportation & Warehousing 32.90 27.42 51 Information 11.71 9.76 52 Finance & insurance 43.32 36.10 53 Real estate & rental 117.30 97.75 54 Professional- scientific & tech svcs 85.72 71.44 55 Management of companies 20.92 17.44 56 Administrative & waste services 101.20 84.33 61 Educational svcs 14.11 11.76 62 Health & social services 58.41 48.67 71 Arts- entertainment & recreation 536.29 446.91 72 Accomodation & food services 1,637.30 1,364.41 81 Other services 50.88 42.40 91-99 Government & non NAICs 6.74 5.62 Total 3,208.15 2,673.46 Source: IMPLAN; Economic & Planning Systems 89 Economic & Planning Systems, Inc. Page | 7 Employee to Household Conversion To translate employees to households and their related income levels, the analysis steps are as follows: • Employees by Occupation – The jobs by NAICS classification are converted to more specific occupation categories to obtain a more detailed distribution of wage levels for the new jobs, since using the average wage for an industry masks the upper and lower wage levels. The BLS National Industry by Occupation Matrix provides the estimated distribution of occupations for each NAICS category. The wages for each occupation in Eagle County are estimated by indexing the national wages by occupation and industry to the average wage in that industry for Eagle County. • Employees to Households – The next adjustment for estimating housing demand is to account for multiple earners per household. On average, there are 1.85 earners per household in the Town of Vail. This adjustment reduces the 2,673.46 employees supported from guest spending in 1,000 accommodation units to 1,445.11 employee- households. • Wages and Household Income – The next step in the employee and household analysis is to estimate household incomes accounting for the wages from the primary and secondary earners in the household. The primary earner – the jobs estimate from the IMPLAN analysis – is assigned the average wage for their industry and occupation. The second 0.85 earner (totaling 1.85 earners per household) is assumed to make the average wage for the industry in which the primary earner is employed. Households and Target Income Ranges The last step in the guest spending analysis is to tabulate the employee-households at income levels of 200 percent of AMI or less. For guest spending in 1,000 accommodation units, there are 1,426.3 employee households supported below 200 percent of AMI, as shown in Table 3. Of the 1,445.1 total employee-households supported, 98.7 percent are at incomes of 200 percent of AMI or less. The balance of 1.3 percent are compensated sufficiently to afford market rate housing. These are the employee households needed to support the spending in the economy from 1,000 STR units. Table 3. Households by AMI Supported by Guest Spending Guest Spending - All Total Households Generated per 1,000 Units 1,445.1 Households by Income Range 30% of Median 0.0 50% of Median 0.0 80% of Median 282.0 100% of Median 950.4 120% of Median 50.8 150% of Median 90.6 200% of Median 52.5 Total - Target Income Ranges 1,426.3 Percent of Households Generated 98.7% Source: Economic & Planning Systems 90 Memorandum: Short Term Rental Fee Analysis Page | 8 Employee-Household Housing Gap To determine affordability needs, the gap for households earning up to 200 percent AMI (by AMI category) is calculated based on the cost to purchase a home in the town, estimated using the median cost for attached homes (e.g., condos). Housing costs were based on sales during the four-year period from 2018 through 2021. This calculation assumes an income for a 2.5-person household as a proxy for an average household size and uses CHFA income levels for Eagle County as those are the income definitions used in most housing qualification processes. As shown in Table 4, affordable prices at these AMI levels range from $55,700 at 30 percent AMI to $726,800 at 200 percent AMI. With a median home cost of $1,250,000, the gap per unit ranges from $1,194,300 at 30 percent AMI to $523,200 at 200 percent AMI. Table 4. Affordable Price and Gap by Income Range AMI Description 30%60%80%100%120%150%200% HH Income and Housing Expense HH Income (2.5-person household)2.5 pp/hh $25,500 $51,000 $68,000 $85,000 $102,000 $127,500 $170,000 Affordable Monthly Housing Cost 30%$638 $1,275 $1,700 $2,125 $2,550 $3,188 $4,250 Supportable Monthly Payment Less: Insurance $2,500/year -$208 -$208 -$208 -$208 -$208 -$208 -$208 Less: Property Taxes 7.15% ass't rate 50.751 mills -$20 -$60 -$80 -$100 -$120 -$160 -$210 Less: Miscellaneous (e.g. HOA Dues)$1,500/year -$125 -$125 -$125 -$125 -$125 -$125 -$125 Net Supportable Mortgage Payment (Monthly)$284 $882 $1,287 $1,692 $2,097 $2,694 $3,707 Valuation Assumptions Loan Amount $52,900 $164,200 $239,700 $315,100 $390,600 $501,900 $690,500 Mortgage Interest Rate 5.0% int. 5.0% int. 5.0% int. 5.0% int. 5.0% int. 5.0% int. 5.0% int. Loan Term 30-year term 30-year term 30-year term 30-year term 30-year term 30-year term 30-year term Downpayment as % of Purchase Price 5.0% down pmt 5.0% down pmt 5.0% down pmt 5.0% down pmt 5.0% down pmt 5.0% down pmt 5.0% down pmt Maximum Supportable Purchase Price $55,700 $172,800 $252,300 $331,700 $411,200 $528,300 $726,800 Cost per Unit $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 Gap per Unit $1,194,300 $1,077,200 $997,700 $918,300 $838,800 $721,700 $523,200 Source: Economic & Planning Systems Factor 91 Economic & Planning Systems, Inc. Page | 9 Local Resident Spending To isolate the effect of guest spending on housing need, a similar methodology was followed to determine the relationship between a local resident household and housing need. This was then subtracted from the guest impact. Local resident spending was modeled based on the median household income in Vail of $80,987, as reported in the U.S. Census 2019 American Community Survey. As with guest spending, 1,000 households were modeled and per household adjustment is made to calculate the final fee. As shown in Table 5, a household income of $80,987 results in a disposable income of $58,774 after accounting for payroll tax. Based on these figures, the total disposable income for 1,000 households is $58.77 million. Table 5. Local Resident Household Income Description Factors Local Spending Program Units 1,000 HH Income (Vail median)ACS 2019 5-Yr Estimate $80,987 Minus Payroll Tax Federal $12,697 FICA $5,021 Medicare $1,174 State $3,321 Total Deductions $22,213 Net Pay / Adjusted Household Income $58,774 Total Annual Household Income 100%$80,987,000 Total Annual Payroll Rax 27%-$22,213,000 Disposable Income 73%$58,774,000 Source: US Census; Economic & Planning Systems 92 Memorandum: Short Term Rental Fee Analysis Page | 10 This income was input to IMPLAN, which then calculates the jobs supported by this household spending. As shown in Table 6, 1,000 households earning the median income support 312.72 jobs. Applying the multiple jobholder factor of 1.20 jobs per employee, this spending results in 260.60 employees. Table 6. Jobs and Employees by Industry Supported from Local Spending Local Spending Description Jobs by Industry (IMPLAN Results) Employees by Category Jobs to Employee Conversion Factor 1.20 Industrial Sectors 11 Ag, Forestry, Fish & Hunting 1.01 0.84 21 Mining 0.10 0.09 22 Utilities 0.63 0.52 23 Construction 3.94 3.28 31-33 Manufacturing 0.47 0.39 42 Wholesale Trade 5.60 4.67 44-45 Retail trade 47.77 39.81 48-49 Transportation & Warehousing 9.53 7.94 51 Information 3.72 3.10 52 Finance & insurance 18.83 15.69 53 Real estate & rental 46.47 38.73 54 Professional- scientific & tech svcs 15.20 12.67 55 Management of companies 1.66 1.38 56 Administrative & waste services 21.54 17.95 61 Educational svcs 7.00 5.83 62 Health & social services 50.17 41.81 71 Arts- entertainment & recreation 11.74 9.79 72 Accomodation & food services 40.19 33.49 81 Other services 25.30 21.08 91-99 Government & non NAICs 1.86 1.55 Total 312.72 260.60 Source: IMPLAN; Economic & Planning Systems 93 Economic & Planning Systems, Inc. Page | 11 These employees were then categorized by occupation and wage and converted into employee households following the same methodology for guest spending. As shown in Table 7, local resident household spending supports a total of 140.90 employee- households, 93.0 percent (131.0 households) of which fall at or below 200 percent of AMI. Affordability needs of these households are determined using the same methodology outlined for guest spending. Table 7. Households by AMI Supported by Local Spending Local Spending Total Households Generated per 1,000 Units 140.9 Households by Income Range 30% of Median 0.0 50% of Median 0.0 80% of Median 18.0 100% of Median 60.1 120% of Median 13.8 150% of Median 28.6 200% of Median 10.5 Total - Target Income Ranges 131.0 Percent of Households Generated 93.0% Source: Economic & Planning Systems 94 Memorandum: Short Term Rental Fee Analysis Page | 12 Fee Calculation This section outlines the calculation of the accommodation unit license fee. There are four key components to the fee calculation: • Households Supported – The number of households at or below 200 percent of AMI supported by guest spending form the basis of the fee, as these represent employees needed in the community who cannot otherwise afford housing. • Occupancy Rate – The impacts of guest spending were determined assuming 100 percent occupancy (i.e., 365 days per year) for modeling purposes and needs to be adjusted for annual occupancy rates. An occupancy rate of 40.0 percent is applied to the housing demand, based on the occupancy data for properties in Zone 1 and Zone 2 from 2016 through 2019 as well as 2021 (2020 was excluded, as COVID impacts made the data non-representative of local conditions). • Affordability Gap – The affordability gap per household and AMI range described earlier ranges from $523,200 at 200 percent of AMI to $1,194,300 at 30 percent of AMI. The number of households in each AMI category (after accounting for the occupancy rate) are multiplied by the gap per household to calculate the total affordability gap. This gap is calculated for both guest spending and local spending. Based on this calculation, the gap per accommodation unit is $515,216 and the gap per local household/housing unit is $110,819. • Adjustment for Local Households – To isolate the impact of guest spending above the impact of a local household, the gap associated with local household spending ($110,819) is subtracted from the gap associated with guest spending ($515,216). This results in a net gap per accommodation unit of $404,397. This fee is then adjusted to reflect a per-bedroom figure (rather than per unit). EPS’s analysis of the Town’s STR data indicates that STRs have an average of 2.28 bedrooms per unit. This is then annualized over 30 years (divided by 30), which is a typical financing period for a long-term housing investment. Based on this analysis, the maximum fee per bedroom is $5,912, as shown in Table 8. This maximum fee amount is the annualized cost of providing housing to the local workforce supported by guest spending. 95 Economic & Planning Systems, Inc. Page | 13 Table 8. Fee Calculation Local Spending Guest Spending - All Households Generated (per 1,000 units)A 30% of Median 0.0 0.0 50% of Median 0.0 0.0 80% of Median 18.0 282.0 100% of Median 60.1 950.4 120% of Median 13.8 50.8 150% of Median 28.6 90.6 200% of Median 10.5 52.5 Total per 100 Units 131.0 1,426.3 Per 1.0 Units 0.13 1.43 STR Occupancy Rate B 40.0% Net Households Generated (per 1,000 units)C 30% of Median A x B 0.0 0.0 50% of Median 0.0 0.0 80% of Median 18.0 112.7 100% of Median 60.1 379.7 120% of Median 13.8 20.3 150% of Median 28.6 36.2 200% of Median 10.5 21.0 Total per 1,000 Units 131.0 569.8 Per 1.0 Units 0.13 0.57 Gap per Household by AMI Range D 30% of Median $1,194,300 $1,194,300 50% of Median $1,077,200 $1,077,200 80% of Median $997,700 $997,700 100% of Median $918,300 $918,300 120% of Median $838,800 $838,800 150% of Median $721,700 $721,700 200% of Median $523,200 $523,200 Total Gap E 30% of Median C x D $0 $0 50% of Median $0 $0 80% of Median $17,918,868 $112,400,795 100% of Median $55,196,836 $348,678,886 120% of Median $11,568,172 $17,037,798 150% of Median $20,634,526 $26,123,638 200% of Median $5,500,933 $10,975,135 Total $110,819,335 $515,216,252 Gap (Fee) per Unit F E / 1000 -$110,819 -$515,216 Net STR Gap per Unit (minus local spend)-$404,397 Avg. Number of Bedrooms 2.28 Net STR Gap (Fee) per Bedroom -$177,367 Annualized Fee per Bedroom 30 years $5,912 Source: Economic & Planning Systems 96 Memorandum: Short Term Rental Fee Analysis Page | 14 Final Fee The fee outlined above represents the maximum reasonable fee to be charged under this program. Communities will generally apply a mitigation rate to this fee to determine the final fee to be charged. As shown in Table 9, a mitigation rate of 15 percent would result in an annual per bedroom fee of $890, a 50 percent mitigation rate would result in a $2,960 annual fee, while a 65 percent mitigation rate would result in a fee of $3,840 per bedroom annually. Table 9. Mitigation Rates Over time, as development opportunities within communities have become limited, as market pressures have increased, and as commute-sheds have grown, local officials have increased mitigation rates, reflecting a greater pressure on the need for local affordable housing. Mitigation rates in peer communities for similar programs (STR fees, residential linkage fees, and commercial linkage fees) range from 15 percent to 65 percent, with many programs falling in the middle of that range. Description Fee Per Bedroom Maximum Annual Fee $5,912 Mitigation Rate 15%$890 20%$1,180 25%$1,480 30%$1,770 35%$2,070 40%$2,360 45%$2,660 50%$2,960 55%$3,250 60%$3,550 65%$3,840 Source: Economic & Planning Systems 97 Economic & Planning Systems, Inc. Page | 15 Owner-Occupied Short Term Rentals In the Town of Vail, owner-occupied properties are limited to 30 days or less of short term rentals per year. A unit rented for a maximum of 30 days per year represents a maximum occupancy rate of 8.2 percent, and thus justifies a separate fee calculation. Additionally, since these units are occupied by local residents the impact of guest spending occurs in addition to the impact of local spending. Thus, the impact of local household spending is not netted out of the guest spending impact attributed to the STR. As shown in Table 11, this results in a maximum annual fee per bedroom of $1,550. As with the standard fee, a mitigation rate would be applied to determine the final fee to be charged. Examples of the per-bedroom fee at a range of mitigation rate levels are shown in Table 10. For example, a 15 percent rate would result in an annual per bedroom fee of $230, a 50 percent mitigation rate would result in a $780 annual fee, while a 65 percent mitigation rate would result in a fee of $1,010 per bedroom annually. Table 10. Mitigation Rates – Owner Occupied Units Description Fee Per Bedroom Maximum Annual Fee $1,550 Mitigation Rate 15%$230 20%$310 25%$390 30%$470 35%$540 40%$620 45%$700 50%$780 55%$850 60%$930 65%$1,010 Source: Economic & Planning Systems 98 Memorandum: Short Term Rental Fee Analysis Page | 16 Table 11. Fee Calculation – Owner Occupied Units Guest Spending - Owner-Occupied Households Generated (per 1,000 units)A 30% of Median 0.0 50% of Median 0.0 80% of Median 282.0 100% of Median 950.4 120% of Median 50.8 150% of Median 90.6 200% of Median 52.5 Total per 100 Units 1,426.3 Per 1.0 Units 1.43 STR Occupancy Rate B 8.2% Net Households Generated (per 1,000 units)C 30% of Median A x B 0.0 50% of Median 0.0 80% of Median 23.2 100% of Median 78.1 120% of Median 4.2 150% of Median 7.4 200% of Median 4.3 Total per 1,000 Units 117.2 Per 1.0 Units 0.12 Gap per Household by AMI Range D 30% of Median $1,194,300 50% of Median $1,077,200 80% of Median $997,700 100% of Median $918,300 120% of Median $838,800 150% of Median $721,700 200% of Median $523,200 Total Gap E 30% of Median C x D $0 50% of Median $0 80% of Median $23,123,770 100% of Median $71,732,325 120% of Median $3,505,119 150% of Median $5,374,313 200% of Median $2,257,871 Total $105,993,397 Gap (Fee) per Unit F E / 1000 -$105,993 Avg. Number of Bedrooms 2.28 Net STR Gap (Fee) per Bedroom -$46,488 Annualized Fee per Bedroom 30 years $1,550 Source: Economic & Planning Systems 99 1 TO: Town Council FROM: Finance Department DATE: January 21, 2025 SUBJECT: Ordinance 24, Series of 2024 2nd Reading: Short-term Rental Regulatory Fee 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 regulatory 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. During that meeting, the Council supported an increase in STR fees as a way to financially support community housing projects and programs rather than manage them with zoning, limits, or ownership time requirements. A study conducted by RRC Associates and Economic Planning Systems (EPS) supported a regulatory fee. II. STR ORDINANCE AMENDMENTS Ordinance 24 Series of 2024 amends the town’s code to establish an annual regulatory fee of $1,200 per bedroom 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. A $1,200 per bedroom regulatory fee is anticipated to generate an estimated $7.2M annually from approximately 2,616 short-term rental properties located within Town of Vail boundaries. This regulatory fee differs from the Town’s current fee ($50 for 24/7 on- site managed and$250 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. This fee will be increased annually by the lesser of 3% or the Denver- Aurora- Lakewood Consumer Price Index and will go into effect on June 30th, 2025, with June 30th becoming the new license renewal date, previously February 28th. The ordinance also includes a primary residence exemption, which exempts primary residences 100 2 from the 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. Additionally, staff has proposed an exemption for developments currently within the town’s development process and have received final approvals from the PEC and design review board. These developments will be exempt from the new fee for up to one year after receiving their certificate of occupancy. Ordinance 24 also includes a $115 fee for STRs that schedule their life safety inspection and then fail to appear at the inspection. III.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. 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. The gap calculation applied a 40% occupancy rate and went on to exclude housing and employee needs based on local spending. 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 a 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. EPS has conducted an initial analysis to update the study and has confirmed that the previously identified gap has increased. The town will engage EPS and RRC to update the study formally. The study completed in 2022 is attached. IV.ACTION REQUESTED OF COUNCIL Approve, approve with amendments to deny Ordinance 24, Series of 2024? 101 1/17/2025 HTTPS://VAILCOGOV.SHAREPOINT.COM/SITES/FINANCE/SHARED DOCUMENTS/BUDGET/BUDGET 25/ORDINANCES & RESOLUTIONS/STR FEE-O011625.DOCX ORDINANCE NO. 24 SERIES 2024 AN ORDINANCE AMENDING CHAPTER 4-14 OF THE VAIL TOWN CODE TO ESTABLISH REGULATORY 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 a regulatory 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 regulatory 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. 102 2 1/17/2025 HTTPS://VAILCOGOV.SHAREPOINT.COM/SITES/FINANCE/SHARED DOCUMENTS/BUDGET/BUDGET 25/ORDINANCES & RESOLUTIONS/STR FEE-O011625.DOCX (4) Address secondary impacts caused by the STR industry by protecting the character of the local community. (5) Ensure that the amount of the STR regulatory 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 4-14-3 of the Vail Town Code is hereby amended as follows: § 4-14-3 LICENSE REQUIRED. * * * (C) Expiration; Renewal. Each STR license shall expire on February 28 June 30 of each calendar year, or when title of the STR transfers to a new owner, whichever occurs first; each change in ownership of a STR shall require a new license. (D) Timing. An initial license application shall be filed at least thirty (30) days prior to any advertising of an STR. A renewal application shall be filed by January 31 June 1 of the year in which the license expires. * * * Section 3. Section 4-14-9 of the Vail Town Code is hereby renumbered as Section 4-14-10. Section 4. 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 REGULATORY FEE. (A) Fee: (1) For each new or renewal STR license issued on or after June 30, 2025, the STR license shall be subject to an annual regulatory fee of one thousand two hundred dollars ($1,200.00) per bedroom (the "STR Regulatory Fee"). Commencing on June 30, 2026, the STR Regulatory Fee shall automatically increase by an amount equal to the then-current Denver- Aurora-Lakewood Consumer Price Index or three percent (3%), whichever is less. (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 STR Regulatory Fee shall be due. To exercise this exemption, the applicant shall submit a signed affidavit, under penalty of perjury, on a form provided by the Town. 103 3 1/17/2025 HTTPS://VAILCOGOV.SHAREPOINT.COM/SITES/FINANCE/SHARED DOCUMENTS/BUDGET/BUDGET 25/ORDINANCES & RESOLUTIONS/STR FEE-O011625.DOCX (3) A residential dwelling unit in a development that has received final approvals from the Planning and Environmental Commission and Design Review Board, as applicable, on or before December 31, 2025, shall be exempt from the STR Regulatory Fee for a period of one year from the date of issuance of the final certificate of occupancy for such residential dwelling unit. (4) No STR license shall be issued until the applicable STR Regulatory Fee has been received by the Town. (B) Bedroom Calculation: (1) The number of bedrooms shall be the number of bedrooms for the STR as listed in the records of the Eagle County Assessor. (2) Studios shall be counted as one (1) bedroom. (C) Regulatory Fee Fund: All STR Regulatory 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. Section 5. 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. * * * (B) Inspections: * * * (4) For each STR inspection that was requested and the licensee failed to appear for or allow the inspection when scheduled, there shall be a fee of one hundred fifteen dollars ($115), which shall be paid to the Town prior to rescheduling such inspection. Section 6. 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 7. 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 8. 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 104 4 1/17/2025 HTTPS://VAILCOGOV.SHAREPOINT.COM/SITES/FINANCE/SHARED DOCUMENTS/BUDGET/BUDGET 25/ORDINANCES & RESOLUTIONS/STR FEE-O011625.DOCX 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 9. 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 21st day of January, 2025, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Travis Coggin, Mayor ATTEST: Stephanie Kaufmann, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this day of , 2025. Travis Coggin, Mayor ATTEST: Stephanie Kauffman, Town Clerk 105 Short Term Rental Ordinance January 21st, 2025 10 6 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. During the 1st reading, Council supported an annual fee of $1,200 per bedroom 10 7 Town Council |   Finance   |   STR Ordinance Changes •New Renewal Date: June 30th •$1,200 per Bedroom Regulatory Fee •Effective June 30th, 2025 •Bedroom count based on assessor’s website •Annual increase: lessor of Denver CPI or 3% •Fee will go to the Town’s Housing Fund to be spent on community housing projects and programs •Exemptions: •30‐day exemption for primary residents •1 year exemption from Certificate of Occupancy for developments with final PEC and Design Approval •“No‐show” Inspection Fee: $115 10 8 Town Council |   Finance   | 2022 STR Economic Nexus Study- EPS 1,132 Employees1,358 Jobs 612 Employee Households Spending from guests at 1,000 accommodation  units (Adjusted for 40% Occupancy) 10 9 Town Council |   Finance   | 2022 STR Economic Nexus Study- EPS $404.4K or $5,912/  per bedroom 570 out of 612  Household Income  is below 200% AMI Market Rate Housing in  Vail  (200% AMI) 11 0 Draft 2025 Housing Needs Assessment 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. Housing Projects 11 1 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 11 2 Town Council |   Finance   |   5/7/2024 COUNCIL DIRECTION Does the Council have any additional feedback or changes prior to adopting Ordinance 24, Series of 2024? 11 3 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 AGENDA ITEM NO. 5.2 Item Cover Page DATE:January 21, 2025 TIME:20 min. SUBMITTED BY:Jamie Leaman-Miller, Community Development ITEM TYPE:Action Items AGENDA SECTION:Public Hearings (6:10pm) SUBJECT:Resolution No. 3, 2025, A Resolution of the Vail Town Council Approving an Amendment to the Lionshead Redevelopment Master Plan to Accommodate Future Development on the Evergreen Lodge at Vail Development Site (7:40pm) SUGGESTED ACTION:Approve, approve with amendments, or deny the amendment to the Lionshead Redevelopment Master Plan. PRESENTER(S):Jamie Leaman-Miller, Planner II VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Staff Memorandum 01-21-25 Resolution No. 3, Series of 2025 PEC24-0047 Staff Memo 12-09-24 PEC_Results_12-9-24 Staff Presentation 01-21-25 Applicant Presentation - 01-21-25 164 TO: FROM: DATE: Vail Town Council Community Development Department January 21, 2025 SUBJECT: Resolution No. 3, Series of 2025, Amendment to the Lionshead Redevelopment Master Plan I.PURPOSE The purpose of is item is to request Council approve, approve with modifications, or deny Resolution No. 3, Series of 2025, for an amendment to the Lionshead Redevelopment Master Plan (PEC24-0047) II.BACKGROUND/SUMMARY The Lionshead Redevelopment Master plan was adopted in December of 1998. In December of 2005, Resolution No. 23, Series of 2005 was approved by the Vail Town Council amending the LRMP to include detailed plan recommendations for the Evergreen Lodge site and amend the boundaries of the Lionshead Study Area. Additionally, Ordinance No. 30, Series of 2005, was adopted establishing Lionshead Mixed Use 1 District zoning for the Evergreen Lodge parcel. The section was amended again in 2015 to update the recommendations for the Evergreen site in conjunction with the land exchange with Vail Health. The plan’s recommendations for the Evergreen site include the elimination of surface parking and improved pedestrian circulation along the South Frontage Road and connection to West Meadow Drive. Section 5.19 contains the detailed plan recommendations for the Evergreen site. The proposed amendment would amend two sub-sections to the Evergreen recommendations. The first change would add new language in Section 5.19.7, creating a build-to line along the south property line of the Evergreen site, where it integrates with the proposed park. This build-to line would supersede the 10’ setback currently in place. While the existing zoning of Lionshead Mixed Use -1 (LMU-1) has setbacks of 10’, the LRMP identifies a 30’ front setback along the south frontage road to accommodate a large utility easement. Section 8.3.4.1 of the LRMP details the use of build-to lines in the plan, their use being to better define the existing public spaces, and to create new ones. 165 Town of Vail Page 2 The second change is a new Section 5.19.10 addressing the relationship between the Evergreen site and Lot 10, reflecting the opportunity for a partnership to create a park on the site. The proposed language and figure for these sections is detailed in the attached resolution. The PEC reviewed the item on December 9th, 2024 and forwarded a recommendation of approval to the Town Council with a 4-2 vote (Rediker, McBride opposed). The minutes for that meeting are attached. III.RECOMMENDATION On December 9th, 2024, the Planning and Environmental Commission forwarded a recommendation of approval to the Vail Town Council. Should Council approve the resolution, Staff recommends the following motion: I move to approve Resolution No. 3, Series of 2025, A resolution of the Vail Town Council adopting an amendment to the Lionshead Redevelopment Master Plan. IV.ATTACHMENTS A.Resolution No. 3, Series of 2025 B.Staff Memo to PEC - Dec. 9th, 2024 C.PEC Minutes – Dec. 9th, 2024 D.Staff’s Presentation – Jan. 21, 2025 E.Applicant’s Presentation – Jan. 21, 2025 166 1 RESOLUTION NO. 3 SERIES 2025 A RESOLUTION OF THE VAIL TOWN COUNCIL APPROVING AN AMENDMENT TO THE LIONSHEAD REDEVELOPMENT MASTER PLAN TO ACCOMMODATE FUTURE DEVELOPMENT ON THE EVERGREEN LODGE AT VAIL DEVELOPMENT SITE WHEREAS, on December 15, 1998, the Town Council adopted the Lionshead Redevelopment Master Plan (the "Master Plan") by Resolution No. 14, Series 1998; WHEREAS, on November 8th, 2024, pursuant to Section 2.8 of the Master Plan, HCT Member LLC ("Applicant") filed an application to amend the Master Plan (the "Application") WHEREAS, on December 9, 2024, the Planning and Environmental Commission (the "PEC") held a properly-noticed public hearing on the Application, and recommended that the Town Council approve the Application; and WHEREAS, on January 21, 2025, the Town Council held a properly-noticed public hearing on the Application. NOW THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. The Town Council hereby approves the update to the Master Plan as set forth in Exhibit A, attached hereto and incorporated herein by this reference. INTRODUCED, READ, APPROVED AND ADOPTED THIS 21st DAY OF JANUARY, 2025. ______________________________ Travis Coggin, Mayor ATTEST: ____________________________ Stephanie Kaufmann, Town Clerk 167 2 EXHIBIT A Master Plan Amendment 1. Section 5.19.7 of the Master Plan is amended as follows: 5.19.7 Setbacks. Special consideration should be given to the setback of buildings from the South Frontage Road. Pursuant to the Lionshead Mixed Use-1 zone district setback standards, a minimum 10' setback is required. Given the relationship of the development site to the South Frontage Road, the need for adequate area for vehicular traffic circulation, the importance of a landscape area to visually screen the massing of the building, and the existence of a 30-foot wide utility easement along the southerly edge of the South Frontage Road, the minimum required front setback for the Evergreen Lodge development site shall be 30'. This increased setback requirement shall supersede the 10' setback requirement prescribed in Section 12-7H-10, Setbacks, Vail Town Code. Based upon the coordinated efforts between the Evergreen Lodge and the Vail Valley Medical Center, opportunities exist for a covered parking deck and pedestrian access landscape plaza to be developed between the properties with the goal of screening surface parking and enhancing the visual quality of the area. If appropriately designed, a reduced or zero setback in these areas may be proposed for review during the development review process. Additionally, below grade improvements, including but not limited to, parking and vehicular circulation improvements may be developed within the required setbacks, if found to be consistent with the Town’s development objectives. Because Lot 10 is to be developed through a coordinated effort with the Evergreen Lodge and the Town, Figure 4 (below) identifies a new build-to line between the Evergreen Lodge and Lot 10. This build-to line supersedes the 10' setback of the zone district. 2. The Master Plan is amended by the addition of a new Section 5.19.10, to read as follows: 5.19.10 Relationship to Lot 10 Park. With the land exchange that was completed between Vail Health (formerly the Vail Valley Medical Center) and the Evergreen Lodge, Lot 10, which is owned by the Town, becomes an important interface with the future redevelopment of the Evergreen Lodge. Lot 10 is currently developed as a parking lot used by the Vail Library, West Meadow Drive connecting to the Vail Civic Center and to Lionshead Village, and landscape improvements located on the south side of West Meadow Drive. Pursuant to the Civic Center Plan, the area north of West Meadow Drive of Lot 10 will be developed as a small park. The Town has granted an access easement from West Meadow Drive to the Evergreen Lodge property to allow 168 3 pedestrian access and create some integration of the Evergreen Lodge to the pedestrian experience on West Meadow Drive. The Evergreen Lodge will fund, design, construct, and maintain the park improvements on the north side of Lot 10 as part of the Evergreen Lodge redevelopment. Recognizing this seamless integration of the two properties, there is no need for the typical 10' building setback - instead, a build-to line is identified on Figure 4 below. Lot 10 will also accommodate underground utilities below Lot 10 so as not to interfere with the development of a park. Figure 4 shows a conceptual integration of the improvements, subject to change through the Town's standard approval process. 169 TO: Planning and Environmental Commission FROM: Community Development Department DATE: December 9, 2024 SUBJECT: 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) Applicant: HCT Member LLC, represented by Mauriello Planning Group Planner: Jamie Leaman-Miller I. INTRODUCTION/OVERVIEW The applicant, HCT Member LLC, represented by Mauriello Planning Group, is requesting a 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. The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council, to amend Section 5.19 of the Lionshead Redevelopment Master Plan. Lot 10 is a Town-owned parcel located on West Meadow Drive between Vail Health and Dobson Ice Arena. The parcel is .46 acres and the northern portion is currently developed as a surface parking lot utilized by the Vail Library staff and patrons requiring accessible parking. The site is bisected by the West Meadow Drive bus route and the southern portion includes a green space adjacent to the Gore Valley Trail. 170 Town of Vail Page 2 Location of Lot 10 Pictured The Evergreen Lodge property is located to the north of Lot 10. In February of 2022, the property initiated development plans for a major redevelopment of the Evergreen Lodge, which included applications to the PEC for a major exterior alteration, conditional use permit, and variance. These applications were approved by the PEC in November of 2022. The redevelopment plans include vehicular access from the South Frontage Road and public pedestrian corridor between the frontage road and West Meadow Drive. The Evergreen holds a pedestrian access easement across Lot 10 to West Meadow Drive. Rendering of Evergreen Lodge Redevelopment Application 171 Town of Vail Page 3 The Lionshead Redevelopment Master plan was adopted in December of 1998. In December of 2005, Resolution No. 23, Series of 2005 was approved by the Vail Town Council amending the LRMP to include detailed plan recommendations for the Evergreen Lodge site and amend the boundaries of the Lionshead Study Area. Additionally, Ordinance No. 30, Series of 2005, was adopted establishing Lionshead Mixed Use 1 District zoning for the Evergreen Lodge parcel. The section was amended again in 2015 to update the recommendations for the Evergreen site in conjunction with the land exchange with Vail Health. The plan’s recommendations for the Evergreen site include the elimination of surface parking and improved pedestrian circulation along the South Frontage Road and connection to West Meadow Drive. Section 5.19 contains the detailed plan recommendations for the Evergreen site. The proposed amendment would amend two sub-sections to the Evergreen recommendations. The first change would add new language and diagram in Section 5.19.7, creating a build-to line along the south property line of the Evergreen site, rather than the 10’ setback currently in place. While the existing zoning of Lionshead Mixed Use -1 (LMU-1) has setbacks of 10’, the LRMP identifies a 30’ front setback along the south frontage road to accommodate a large utility easement. Section 8.3.4.1 of the LRMP details the use of build-to lines in the plan, their use being to better define the existing public spaces, and to create new ones. The second change is a new Section 5.19.10 addressing the relationship between the Evergreen site and Lot 10, reflecting the opportunity for a partnership to create a park on the site. The proposed language is detailed in the following section. II. PROPOSED AMENDMENTS The revised sections of the LRMP are provided below. The new text proposed to be added is in bold. 5.19.7 Setbacks Special consideration should be given to the setback of buildings from the South Frontage Road. Pursuant to the Lionshead Mixed Use -1 zone district setback standards, a minimum 10-foot (10’) setback is required. Given the relationship of the development site to the South Frontage Road, the need for adequate area for vehicular traffic circulation, the importance of a landscape area to visually screen the massing of the building, and the existence of a 30-foot wide utility easement along the southerly edge of the South Frontage Road, the minimum required front setback for the Evergreen Lodge development site shall be thirty feet (30’). This increased setback requirement shall supersede the 10-foot setback requirement prescribed in Section 12- 7H-10, Setbacks, Vail Town Code. 172 Town of Vail Page 4 Based upon the coordinated efforts between the Evergreen Lodge and the Vail Valley Medical Center, opportunities exist for a covered parking deck and pedestrian access landscape plaza to be developed between the properties with the goal of screening surface parking and enhancing the visual quality of the area. If appropriately designed, a reduced or zero set back in these areas may be proposed for review during the development review process. Additionally, below grade improvements, including but not limited to, parking and vehicular circulation improvements may be developed within the required setbacks, if found to be consistent with the Town’s development objectives. Because Lot 10 is to be developed through a coordinated effort with the Evergreen Lodge and the Town of Vail, a build-to line has been identified between the Evergreen Lodge and Lot 10. As stated in the Town Code, this build-to line supersedes the 10 ft setback of the zone district. Figure 4 identifies the new build- to line between the properties. 173 Town of Vail Page 5 5.19.10 Relationship to Lot 10 Park With the land exchange that was completed between Vail Health (formerly the Vail Valley Medical Center) and the Evergreen Lodge, Lot 10, which is owned by the Town, becomes an important interface with the future redevelopment of the Evergreen Lodge. Lot 10 is currently developed as a parking lot used by the Vail Library; West Meadow Drive connecting to the Vail Civic Center and to Lionshead Village; and landscape improvements located on the south side of West Meadow Drive. The Civic Center Plan indicates that the area north of West Meadow Drive of Lot 10 should be developed as a small park area. The Town has previously granted an access easement from West Meadow Drive to the Evergreen Lodge property to allow pedestrian access and create some integration of the Evergreen Lodge to the pedestrian experience on West Meadow Drive. The opportunity exists to more fully integrate the planning, design, and function of the Lot 10 park with the redevelopment of the Evergreen Lodge so that the two properties are seamless in design and function. One way to accomplish this seamless approach is to have the Evergreen Lodge fund, design, construct, and maintain the park improvements on this north side of Lot 10 as part of the Evergreen Lodge redevelopment. This can be accomplished by having the two parties enter into a legal arrangement (license, easement, or lease of some sort) to allow this to occur. Recognizing this seamless integration of the two properties, there is no need for the typical 10’ building setback. Instead, a build-to line has been identified on Figure 4. Lot 10 would also be available to accommodate underground utilities below Lot 10 in such a way as they do not interfere with the development of a park. Additionally, Figure 4 shows a conceptual integration of the improvements, subject to change through the approval process with the Town of Vail. III. APPLICABLE PLANNING DOCUMENTS Title 12 Zoning Regulations Article 12- 7H Lionshead Mixed Use 1 ( LMU- 1) District ( in part) 12-7H-1 PURPOSE. (A) The Lionshead Mixed Use 1 District is intended to provide sites for a mixture of multiple-family dwellings, lodges, hotels, fractional fee clubs, timeshares, lodge dwelling units, restaurants, offices, skier services, and commercial establishments in a clustered, unified development. Lionshead Mixed Use 1 District, in accordance with the Lionshead Redevelopment Master Plan, is intended to ensure adequate light, air, open space and other amenities appropriate to the permitted types of buildings and uses and to 174 Town of Vail Page 6 maintain the desirable qualities of the zone district by establishing appropriate site development standards. This zone district is meant to encourage and provide incentives for redevelopment in accordance with the Lionshead Redevelopment Master Plan. (B) This zone district was specifically developed to provide incentives for properties to redevelop. The ultimate goal of these incentives is to create an economically vibrant lodging, housing and commercial core area. The incentives in this zone district include increases in allowable gross residential floor area, building height and density over the previously established zoning in the Lionshead Redevelopment Master Plan study area. The primary goal of the incentives is to create economic conditions favorable to inducing private redevelopment consistent with the Lionshead Redevelopment Master Plan. Additionally, the incentives are created to help finance public off site improvements adjacent to redevelopment projects. With any development/redevelopment proposal taking advantage of the incentives created herein, the following amenities will be evaluated: streetscape improvements; pedestrian/bicycle access; public plaza redevelopment; public art; roadway improvements; and similar improvements. LIONSHEAD REDEVELOPMENT MASTER PLAN 2.3 Policy Objectives The Town Council adopted six policy objectives on November 4, 1996 to outline the important issues to be addressed in the master plan and to provide a policy framework for the master planning process. 2.3.1 Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents. Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character. 2.3.2 Vitality and Amenities We must seize the opportunity to enhance guest experience and community interaction through expanded and additional activities and amenities such as performing arts venues, conference facilities, ice rinks, streetscape, parks and other recreational improvements. 2.3.4 Stronger Economic Base Through Increased Live Beds In order to enhance the vitality and viability of Vail, renewal and redevelopment in Lionshead must promote improved occupancy rates and the creation of additional bed base (“live beds” or “warm beds”) through new lodging products. Live beds and warm beds are best described as residential or lodging rooms or units that are designed for occupancy by visitors, guests, individuals, or families on a short term rental basis. In 175 Town of Vail Page 7 order to improve occupancy rates and create additional bed base in Lionshead, applications for new development and redevelopment projects which include a residential component shall provide live beds in the form of accommodation units, fractional fee club units, lodge dwelling units, timeshare units, attached accommodation units (i.e, lock-off units), or dwelling units which are included in a voluntary rental management program and available for short term rental. Further, it is the expressed goal of this Plan that in addition to creating additional bed base through new lodging products, there shall be no net loss of existing live beds within the Lionshead Redevelopment Master Plan study area. 2.3.4 Improved Access and Circulation The flow of pedestrian, vehicular, bicycle and mass transit traffic must be improved within and through Lionshead. 2.3.5 Improved Infrastructure The infrastructure of Lionshead (streets, walkways, transportation systems, parking,utilities, loading and delivery systems, snow removal and storage capacity) and its public and private services must be upgraded to support redevelopment and revitalization efforts and to meet the service expectations of our guests and residents. 2.3.6 Creative Financing for Enhanced Private Profits and Public Revenues Financially creative and fiscally realistic strategies must be identified so that adequate capital may be raised from all possible sources to fund desired private and public improvements. VAIL LAND USE PLAN (IN PART) 1. General Growth / Development 1.1. Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.2. The quality of the environment including air, water and other natural resources should be protected as the Town grows. 1.3 The quality of development should be maintained and upgraded whenever possible. 176 Town of Vail Page 8 4. Village Core / Lionshead 4.1 Future commercial development should continue to occur primarily in existing commercial areas. Future commercial development in the Core areas needs to be carefully controlled to facilitate access and delivery. 4.2 Increased density in the Core areas is acceptable so long as the existing character of each area is preserved through implementation of the Urban Design Guide Plan and the Vail Village Master Plan. 4.4 The connection between the Village Core and Lionshead should be enhanced through: a. Installation of a new type of people mover. b. Improving the pedestrian system with a creatively designed connection, oriented toward a nature walk, alpine garden, and/or sculpture plaza. c. New development should be controlled to limit commercial uses. IV. CONSIDERATION FOR REVIEW The adoption of an amendment or update to a master plan needs to be in concert with the Town of Vail’s Comprehensive Master Plan. The adopted master plan shall support, strengthen, and further the development objectives of the town. To ensure consistency with these objectives, the following factors for consideration are applied: A. How conditions have changed since the original plan was adopted. The proposed amendment acknowledges previous planning efforts and adds additional details incorporating recent changes. Since the last amendment to this section in 2015, the Vail Health hospital completed a significant expansion and the Evergreen received approval for a major redevelopment. The Civic Area planning was also completed which identifies the importance of Lot 10 and a potential park on the site. The proposal reflects the updated planning context and expands upon the relationship between the Evergreen and Lot 10, facilitating the connection between the South Frontage Road and West Meadow Drive. The language reflects the opportunity for a public-private partnership to achieve integrated planning and design between the two sites, where the park could serve as a central plaza connecting the village core with the civic area and Lionshead. 177 Town of Vail Page 9 Build-to lines are utilized in the LRMP and laid out in Map S, on page 243 of 247 of the LRMP. The purpose of the build-to lines superseding setbacks is to create a pedestrian corridor similar to the Village where the buildings frame the pedestrian experience. Referring to Map S the build-to lines denote the main route through the Lionshead Village. The proposed addition of a build-to line for the Evergreen does not achieve the same effect of the other build-to lines in the main portion of the Lionshead Village as it is a standalone line for a single property compared to a corridor. However, the amendment also proposes to integrate the park into the Evergreen design and provide a seamless experience between the two lots. As the park will function as a pedestrian space and an extension of the public realm the traditional need for a setback is not necessary in this specific location. B. How is the original plan in error? While the previous plan is not in error, the proposed amendment provides in update to the master plan incorporating the changes since the last update concerning this area nine years ago. The approved development for the Evergreen achieves the LRMP recommendations of covered parking with a landscape lid, as well as pedestrian circulation between South Frontage Road and West Meadow Drive. Currently however the LRMP does not elaborate on how to complete the final portion of the connection to West Meadow Drive. This proposal expands on the goals for Lot 10 and its integration with the Evergreen site to achieve a coordinated vision for the area. C. How the addition, deletion, or change to the Vail Land Use Plan is in concert with the plan in general. Section 2.3 of the Lionshead Redevelopment Master Plan outlines the six policy objectives of the plan. Staff believes the following objectives are the most applicable to this review. 2.3.1 Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents. Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character. 2.3.2 Vitality and Amenities We must seize the opportunity to enhance guest experience and community interaction through expanded and additional activities and amenities such as performing arts venues, conference facilities, ice rinks, streetscape, parks and other recreational improvements. 178 Town of Vail Page 10 2.3.4 Improved Access and Circulation The flow of pedestrian, vehicular, bicycle and mass transit traffic must be improved within and through Lionshead. 2.3.5 Improved Infrastructure The infrastructure of Lionshead (streets, walkways, transportation systems, parking,utilities, loading and delivery systems, snow removal and storage capacity) and its public and private services must be upgraded to support redevelopment and revitalization efforts and to meet the service expectations of our guests and residents. 2.3.6 Creative Financing for Enhanced Private Profits and Public Revenues Financially creative and fiscally realistic strategies must be identified so that adequate capital may be raised from all possible sources to fund desired private and public improvements. V. RECOMMENDED MOTION The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval, to the Vail Town Council, pursuant to Section 3-2-6A, Amendment, Vail Town Code, for the update to the Lionshead Redevelopment Master Plan. (PEC24-0047) Staff’s recommendation is based upon the review of the criteria described in Section IV of this memorandum and the evidence and testimony presented. Should the Planning and Environmental Commission choose to forward a recommendation of approval, for this request, the Community Development Department recommends the Commission pass the following motion: “The Planning and Environmental Commission forwards a recommendation of approval, 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 ford details in regard thereto. (PEC24-0047) Should the Planning and Environmental Commission choose to forward a recommendation of approval, for this request, the Community Development Department recommends the Commission makes the following findings: “Based upon the review of the criteria outlined in Section IV of this Staff memorandum to the Planning and Environmental Commission dated December 9, 2024 and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the master plan amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and 179 Town of Vail Page 11 2.That the master plan amendment furthers the general and specific purposes of the zoning regulations; and 3. That the master plan amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." VI.ATTACHMENTS A.Applicant’s Narrative 180 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 Planning and Environmental Commission Meeting Minutes of December 9, 2024 1 181 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. Planning and Environmental Commission Meeting Minutes of December 9, 2024 2 182 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 Planning and Environmental Commission Meeting Minutes of December 9, 2024 3 183 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. Planning and Environmental Commission Meeting Minutes of December 9, 2024 4 184 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. Planning and Environmental Commission Meeting Minutes of December 9, 2024 5 185 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 Planning and Environmental Commission Meeting Minutes of December 9, 2024 6 186 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. Planning and Environmental Commission Meeting Minutes of December 9, 2024 7 187 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. Planning and Environmental Commission Meeting Minutes of December 9, 2024 8 188 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). Planning and Environmental Commission Meeting Minutes of December 9, 2024 9 189 PRESENTATION BY Jamie Leaman-Miller Planner II Lionshead Redevelopment Master Plan Amendment 190 Amendment to the LRMP Town of Vail | vail.gov The purpose of is item is to request Council approve, approve with modifications, or deny Resolution No. 3, Series of 2025, for an amendment to the Lionshead Redevelopment Master Plan (PEC24-0047) 191 Vicinity Map Town of Vail | vail.gov The lot is located between Forest Road and Rockledge Road. The development lot currently contains a duplex structure of which Unit A is the primary unit and Unit B is the secondary unit. Lot 10 192 Lionshead Redevelopment Master Plan Town of Vail | vail.gov •Adopted in 1998 •Res. 23 (2005): Amendment included detailed plan recommendations for Evergreen Lodge site and boundaries of the Lionshead study area •Ord. 30 (2005): Established LMU-1 Zoning for the Evergreen parcel •Res. 39 (2015): Updated recommendations for the Evergreen in conjunction with land exchange 193 Evergreen Redevelopment Town of Vail | vail.gov •Received PEC approval for a major redevelopment in December of 2022 •Plans include a public pedestrian corridor •Holds a pedestrian access agreement across Lot 10 Section 5.19 of the LRMP addresses specific recommendations for the Evergreen Site. These include: •Elimination of surface parking and creation of more underground parking; •Improved streetscape and landscaping along the South Frontage Road; •Improved pedestrian circulation along the South Frontage Road and connection to West Meadow Drive; 194 Lot 10 Civic Area Plan (2019) •Facilitates pedestrian connection between W Meadow Drive & South Frontage Road in conjunction with Evergreen Redevelopment •Design and animate this public space to make it an appealing destination for pedestrians along the Town’s primary pedestrian corridor between Vail Village and Lionshead. •Coordinate with the Evergreen Lodge on how their improvement plans could integrate with improvements to Lot 10. •Town owned parcel of .46 acres •Comprised of surface parking for the library and green space adjacent to pedestrian trail Town of Vail | vail.gov 195 Proposed Amendment Town of Vail | vail.gov Section 5.19.7 Because Lot 10 is to be developed through a coordinated effort with the Evergreen Lodge and the Town of Vail, a build-to line has been identified between the Evergreen Lodge and Lot 10. As stated in the Town Code, this build-to line supersedes the 10 ft setback of the zone district. Figure 4 identifies the new build-to line between the properties. 196 Proposed Amendment Town of Vail | vail.gov 5.19.10 Relationship to Lot 10 Park With the land exchange that was completed between Vail Health (formerly the Vail Valley Medical Center) and the Evergreen Lodge, Lot 10, which is owned by the Town, becomes an important interface with the future redevelopment of the Evergreen Lodge. Lot 10 is currently developed as a parking lot used by the Vail Library, West Meadow Drive connecting to the Vail Civic Center and to Lionshead Village, and landscape improvements located on the south side of West Meadow Drive. Pursuant to the Civic Center Plan, the area north of West Meadow Drive of Lot 10 will be developed as a small park. The Town has granted an access easement from West Meadow Drive to the Evergreen Lodge property to allow pedestrian access and create some integration of the Evergreen Lodge to the pedestrian experience on West Meadow Drive. The Evergreen Lodge will fund, design, construct, and maintain the park improvements on the north side of Lot 10 as part of the Evergreen Lodge redevelopment. Recognizing this seamless integration of the two properties, there is no need for the typical 10' building setback - instead, a build-to line is identified on Figure 4 below. Lot 10 will also accommodate underground utilities below Lot 10 so as not to interfere with the development of a park. Figure 4 shows a conceptual integration of the improvements, subject to change through the Town's standard approval process. 197 Build-to Lines Town of Vail | vail.gov 198 Consideration for Review Town of Vail | PEC24-0047| vail.gov The adoption of an amendment or update to a master plan needs to be in concert with the Town of Vail’s Comprehensive Master Plan. The adopted master plan shall support, strengthen, and further the development objectives of the town. To ensure consistency with these objectives, the following factors for consideration are applied: A.How conditions have changed since the original plan was adopted B.How is the original plan in error? C.How the addition, deletion, or change to the Vail Land Use Plan is in concernt with the plan in general. 199 Recommendation Town of Vail | PEC23-0047| vail.gov On December 9th, 2024, the Planning and Environmental Commission forwarded a recommendation of approval to the Vail Town Council. Should Council approve the resolution, Staff recommends the following motion: I move to approve Resolution No. 3, Series of 2025, A resolution of the Vail Town Council adopting an amendment to the Lionshead Redevelopment Master Plan. 200 Thank you 201 LHMP Amendment: Lot 10 & The Evergreen Town Council January 7, 2025 202 Background •Lot 10 located at 281 West Meadow Drive •Owned by Town of Vail •Currently used as parking lot, roadway, and landscaping area •Approximately 19,055 sq. ft. including area of the roadway •Lot 10 straddles West Meadow Drive, provides link between West Meadow Drive and Civic Plan area Lot 10 203 Background •The Evergreen development team and Town been working on coordinated park design plan for Lot 10 •Town Council has authorized The Evergreen development team to take lead in design of portion of Lot 10 on north side of West Meadow Drive •Concept of cooperation is supported by both the Lionshead Redevelopment Master Plan and the Civic Center Plan •Evergreen will fund, construct, and maintain park/plaza with agreement with the Town LOT 10 PROJECT 3 LOT 10 PROJECT GOALS TOWN OF VAIL LOT 10 UNDERSTANDING - CONNECTIONS Due to its adjacency to many city amenities, Lot 10 must serve to create, enhance, and support connections to neighboring landmarks. These connections include: • Strengthen connections to the adjacent civic district, including Dobson Arena and the Vail Public Library. • Connecting the park to the existing Vail- Lionshead Bike Path and the Lionshead Gondola. • Maintaining a pedestrian bridge connection across Middle Creek • Connect pedestrians through the Evergreen Development to the Frontage Road, navigating 12 ft of grade change. • Connect to and provide outdoor cafe seating to serve the proposed co ee program in the future Evergreen Development. MIDDLE CREEK CORRIDOR DOBSON ARENA VAIL PUBLIC LIBRARY FUTURE EVERGREEN DEVELOPMENT “THE LID” OVER VAIL HEALTH PARKING MAINTAIN MIDDLE CREEK CONNECTION CONNECT TO CIVIC DISTRICT CONNECTION TO EXISTING BIKE WAY CONNECTION TO EVERGREEN + CAFE CONNECTION THROUGH SITE CONNECTION TO MEADOW DRIVE 204 Background •Tying The Evergreen seamlessly together with Lot 10 creates much larger park experience •Connecting Lot 10 with cafe at The Evergreen •Up pedestrian promenade though The Evergreen to restaurant, and connecting to Vail Municipal site •Integrating design of Lot 10 with Evergreen creates opportunity for seamless and well thought out design that expands park experience •More than doubles the park and plaza experience for the public LOT 10 PROJECT 4 LOT 10 PROJECT GOALS TOWN OF VAIL LOT 10 UNDERSTANDING - PUBLIC SPACE EXPANSION Along with Lot 10, the proposed development of the adjacent Evergreen project will include approximately 20,000 additional square feet of fully- accessible public realm. The design of Lot 10 will support the invitation to and connection through this space. Pedestrian paths will navigate through the development to connect to the Frontage Road and the proposed restaurant inside the Evergreen lobby: • The additional public realm within the Evergreen development increases the area accessible to the public significantly. • The design of Lot 10 will welcome and invite visitors into the public realm within the Evergreen courtyard. • The material and aesthetic quality between Lot 10 park and the Evergreen courtyard will feel cohesive. APPROX. 20,000 SF FULLY-ACCESSIBLE PUBLIC REALM APPROX. 5,800 SF PUBLIC CONNECTION TO FRONTAGE ROAD LOT 10 FUTURE EVERGREEN DEVELOPMENT PEDESTRIAN CONNECTION THROUGH SITE 39,700 SQ. FT. OF TOTAL PUBLIC REALM 13,900 sf 39,700 sf of total public realm 205 Town Council (12/3/24) •Town Council reviewed concepts for Lot 10 •Directed staff to enter into a license agreement for The Solaris Group to Design, Build, and Maintain a public park on Lot 10 •Will move forward with public engagement on park design + DRB 206 PEC (12/3/24) •Public Hearing held with PEC on December 5, 2024 to review proposed amendment to the Lionshead Redevelopment Master Plan •PEC recommended approval of the proposed amendment with a vote of 4-2 (Rediker/McBride opposed) 207 Proposed LHMP Amendment The proposed text amendment to the LHMP maintains the existing language that is specifically applicable to the Evergreen Lodge with these additions: 1.Under Section 5.19.7 Setbacks, a paragraph has been added addressing the proposed build-to line between Lot 10 and the Evergreen Lodge. 2.The addition of a new section, Section 5.19.10 Relationship to Lot 10 Park, that deals specifically with the interaction of the Evergreen Lodge with Lot 10. 3.A new figure, Figure 4, showing the relationship of the Evergreen Lodge to Lot 10, and the conceptual goals for the Lot 10 park. 208 Section 5.19.7 Setbacks Reflects changes to language by the Town Attorney. Special consideration should be given to the setback of buildings from the South Frontage Road. Pursuant to the Lionshead Mixed Use-1 zone district setback standards, a minimum 10' setback is required. Given the relationship of the development site to the South Frontage Road, the need for adequate area for vehicular traffic circulation, the importance of a landscape area to visually screen the massing of the building, and the existence of a 30-foot wide utility easement along the southerly edge of the South Frontage Road, the minimum required front setback for the Evergreen Lodge development site shall be 30'. This increased setback requirement shall supersede the 10' setback requirement prescribed in Section 12-7H-10, Setbacks, Vail Town Code. Based upon the coordinated efforts between the Evergreen Lodge and the Vail Valley Medical Center, opportunities exist for a covered parking deck and pedestrian access landscape plaza to be developed between the properties with the goal of screening surface parking and enhancing the visual quality of the area. If appropriately designed, a reduced or zero setback in these areas may be proposed for review during the development review process. Additionally, below grade improvements, including but not limited to, parking and vehicular circulation improvements may be developed within the required setbacks, if found to be consistent with the Town’s development objectives. Because Lot 10 is to be developed through a coordinated effort with the Evergreen Lodge and the Town, Figure 4 (below) identifies a new build-to line between the Evergreen Lodge and Lot 10. This build-to line supersedes the 10' setback of the zone district. (Text to be added is shown underlined) 209 Section 5.19.10 Relationship to Lot 10 Park (NEW) With the land exchange that was completed between Vail Health (formerly the Vail Valley Medical Center) and the Evergreen Lodge, Lot 10, which is owned by the Town, becomes an important interface with the future redevelopment of the Evergreen Lodge. Lot 10 is currently developed as a parking lot used by the Vail Library, West Meadow Drive connecting to the Vail Civic Center and to Lionshead Village, and landscape improvements located on the south side of West Meadow Drive. Pursuant to the Civic Center Plan, the area north of West Meadow Drive of Lot 10 will be developed as a small park. The Town has granted an access easement from West Meadow Drive to the Evergreen Lodge property to allow pedestrian access and create some integration of the Evergreen Lodge to the pedestrian experience on West Meadow Drive. The Evergreen Lodge will fund, design, construct, and maintain the park improvements on the north side of Lot 10 as part of the Evergreen Lodge redevelopment. Recognizing this seamless integration of the two properties, there is no need for the typical 10' building setback - instead, a build-to line is identified on Figure 4 below. Lot 10 will also accommodate underground utilities below Lot 10 so as not to interfere with the development of a park. Figure 4 shows a conceptual integration of the improvements, subject to change through the Town's standard approval process. 210 New Figure 4 •Provides a general framework for the concept of the Lot 10 park •Recognizes the 12’ grade change from the Landscape Lid down to W. Meadow Drive •Identifies a new build-to one for The Evergreen at Lot 10 Figure 4 Build-To line between Lot 10 and The Evergreen 211 Build-To Lines •There is a 30 ft. setback for The Evergreen property along the Frontage Road right-of- way required by the Master Plan •20 ft. more than is required of most buildings in Lionshead •Requires that the whole building be pushed southward •The proposed build-to line helps to also mitigate the impact of the extraordinary 30’ setback 30 ft. setback along S. Frontage Road 212 Priorities for Lot 10 Programming Cafe •The Town identified need for activation of Lot 10, expressing desire for restaurant use within The Evergreen where it meets Lot 10 •Reworked design and programming of The Evergreen to provide cafe adjacent to Lot 10, along with providing outdoor seating serving both cafe and plaza area •Similar experience to East Meadow Drive with plazas and dining patios bleeding into the public realm to activate the street and plaza experience LOT 10 PROJECT 11 LOT 10 PROJECT GOALS TOWN OF VAIL CREEK BUFFER CENTRAL ART PLAZA CAFE PLAZA STEPS + SEATING HOSPITAL SCREENING MIDDLE CREEK CORRIDOR FUTURE EVERGREEN DEVELOPMENT “THE LID” OVER VAIL HEALTH PARKING +12’ +12’ 95’MEADOW DR. GRADE CHANGE LOT 10 CONCEPTUAL PROGRAM The park will include a variety of program that is flexible and serves the needs of the community. The heart of the park is a central plaza which will be framed by flexible, activated plaza seating. The west side of the park will seamlessly integrate with the Middle Creek corridor. Grade change creates an opportunity for active and inviting stairs, steps, slopes, or terraces. 213 Priorities for Lot 10 Programming Central Art Plaza •As supporter of public art, The Evergreen owner believes that Lot 10 should be location for an iconic art piece •Help to morph current parking on Lot 10 into memorable public space •Art plaza concept serves multitude of purposes: •Marking connection between Vail Village and Lionshead •Creating entry into Civic Hub •Developing a social gathering place along primary pedestrian route in Vail LOT 10 PROJECT 11 LOT 10 PROJECT GOALS TOWN OF VAIL CREEK BUFFER CENTRAL ART PLAZA CAFE PLAZA STEPS + SEATING HOSPITAL SCREENING MIDDLE CREEK CORRIDOR FUTURE EVERGREEN DEVELOPMENT “THE LID” OVER VAIL HEALTH PARKING +12’ +12’ 95’MEADOW DR. GRADE CHANGE LOT 10 CONCEPTUAL PROGRAM The park will include a variety of program that is flexible and serves the needs of the community. The heart of the park is a central plaza which will be framed by flexible, activated plaza seating. The west side of the park will seamlessly integrate with the Middle Creek corridor. Grade change creates an opportunity for active and inviting stairs, steps, slopes, or terraces. 214 Priorities for Lot 10 Programming Plaza Steps and Seating •To further art plaza concept and to address grade change to landscape lid, team looked to places where steps and seating areas are used creatively to create public spaces •Concepts from other public parks have been reviewed from pocket park in Lionshead to a curving staircase in Barcelona LOT 10 PROJECT 11 LOT 10 PROJECT GOALS TOWN OF VAIL CREEK BUFFER CENTRAL ART PLAZA CAFE PLAZA STEPS + SEATING HOSPITAL SCREENING MIDDLE CREEK CORRIDOR FUTURE EVERGREEN DEVELOPMENT “THE LID” OVER VAIL HEALTH PARKING +12’ +12’ 95’MEADOW DR. GRADE CHANGE LOT 10 CONCEPTUAL PROGRAM The park will include a variety of program that is flexible and serves the needs of the community. The heart of the park is a central plaza which will be framed by flexible, activated plaza seating. The west side of the park will seamlessly integrate with the Middle Creek corridor. Grade change creates an opportunity for active and inviting stairs, steps, slopes, or terraces. 215 Priorities for Lot 10 Programming Hospital Screening •One of main priorities of land exchange that occurred with Town of Vail, Vail Health, and the Evergreen Lodge was to ensure that parking lot could be screened from public view •Purpose of landscape lid concept and remains priority •Landscaping has been strategically placed to screen access to Vail Health, along with providing a buffer to Vail Health building •Provides a landscape break along West Meadow Drive LOT 10 PROJECT 11 LOT 10 PROJECT GOALS TOWN OF VAIL CREEK BUFFER CENTRAL ART PLAZA CAFE PLAZA STEPS + SEATING HOSPITAL SCREENING MIDDLE CREEK CORRIDOR FUTURE EVERGREEN DEVELOPMENT “THE LID” OVER VAIL HEALTH PARKING +12’ +12’ 95’MEADOW DR. GRADE CHANGE LOT 10 CONCEPTUAL PROGRAM The park will include a variety of program that is flexible and serves the needs of the community. The heart of the park is a central plaza which will be framed by flexible, activated plaza seating. The west side of the park will seamlessly integrate with the Middle Creek corridor. Grade change creates an opportunity for active and inviting stairs, steps, slopes, or terraces. 216 LOT 10 PROJECT 19 LOT 10 PROJECT GOALS TOWN OF VAIL LOT 10 CONCEPTS 217 LOT 10 PROJECT 22 LOT 10 PROJECT GOALS TOWN OF VAIL CONCEPT 1 - THE CLIFF • Sloped pedestrian path all the way to the Evergreen restaurant • Expanded street edge to create promenade experience • Wide terraces provides flexible and unique seating. • Planting is strategic, framing the large open plaza and providing shade for seating along W. Meadow Drive. Site Axon View from Meadow Drive CAFE SEATINGTRAIL CONNECTIONS HOSPITAL SCREEN SLOPED CIRCULATION TERRACED PLATFORM SEATINGCENTRAL SCULPTURE 218 LOT 10 PROJECT 23 LOT 10 PROJECT GOALS TOWN OF VAIL CONCEPT 2 - THE BOWL • Topography frames plaza on three sides, grade change takes on an amphitheater form. • Thick edge screens hospital on the east. • Staircase provides a direct connection to the Evergreen plaza. • Planting is organized, creating confortable secondary spaces. SEATING BOSQUE HOSPITAL SCREEN STAIRS INVITE USERS UP TO LID SEAT STEPS - LOCAL STONECENTRAL SCULPTURE Site Axon View from Meadow Drive 219 LOT 10 PROJECT 24 LOT 10 PROJECT GOALS TOWN OF VAIL CONCEPT 3 - THE RIDGE • Paths moves along a ridge, creating a unique and inviting experience. • Two ways of moving up, 6” terraces feel contextual to local geology. • Planting along W. Meadow Dr. creates a sense of enclosure in the space. • Planting is naturalistic, harkening to the mountainside ecology. Site Axon View from Meadow Drive CAFE SEATINGTRAIL CONNECTIONS HOSPITAL SCREEN IMMERSIVE CIRCULATION UP TO LID STEPPED SEATINGCENTRAL SCULPTURE 220 Criteria for Review LHMP Amendment 221 How have conditions changed since the plan was adopted? •The LHMP was originally adopted in 1998. •At the time, the Evergreen Lodge was not included in the Lionshead study area. •In 2005, the Town Council adopted Resolution #15, Series of 2005, which expanded the boundaries of the LHMP to include the Evergreen Lodge site, and added site specific detailed plan recommendations for future development. •The plan was amended again with Resolution No. 38, Series of 2015, which was primarily done in concert with the land exchange with Vail Health. •The 2015 amendment provided more specific guidance on the redevelopment of the Evergreen Lodge with the change in property boundaries. 222 How have conditions changed since the plan was adopted? •The Town of Vail adopted the Civic Area Plan in 2019. •The Civic Area Plan focuses on Town- owned sites, including Lot 10. •Lot 10 is identified in the plan, and the plan recognized the importance of Lot 10 as a connection from the municipal site down to West Meadow Drive. •The adoption of the Civic Area Plan provided additional direction on the integration of The Evergreen with Lot 10. 223 How have conditions changed since the plan was adopted? •Once Vail Health completed their significant redevelopment project facilitated by the land exchange, The Evergreen development team submitted a redevelopment application to the Town of Vail in February 2022, which was subsequently approved by the Town of Vail on January 2023. 224 How have conditions changed since the plan was adopted? •The proposed text amendment to the LHMP is intended to address all these conditions that have changed since the plan was adopted in 1998, and even since the amendments in 2015. •In less than 10 years, the land exchange with Vail Health was completed, Vail Health underwent a massive expansion project, the Town of Vail initiated and completed master planning the Civic Area, and The Evergreen was approved by the Town of Vail for redevelopment. •These conditions have all come together to create an opportunity for the Town of Vail and The Evergreen development team to address Lot 10 in a comprehensive manner, and to place the burden on the developer to fund, design, construct, and maintain Lot 10. 225 How is the plan in error? •The LHMP is relatively silent with regard to the interaction between The Evergreen development site and Lot 10. •While is speaks to improved pedestrian circulation between the South Frontage Road to West Meadow Drive, it does not provide much guidance as to the interface of this connection with Lot 10. 226 How is the plan in error? •The LHMP states that the pedestrian connection between Vail Health and The Evergreen could utilize a one-story deck that would cover the Vail Health’s surface parking. •This “landscape lid” has been successfully designed as part of The Evergreen’s redevelopment plan. •However, the LHMP is silent as to how this landscape lid transitions down to West Meadow Drive, and how to appropriately integrate Lot 10 and The Evergreen. Landscape Lid over Vail Health Surface ParkingW. Meadow Drive 12’ of grade change 227 How is the plan in error? •The proposed amendment is intended to address this oversight, and provide a public process for input in the early planning and design phase for Lot 10. •Once this planning has occurred, a design for Lot 10, along with modifications to The Evergreen will be submitted to the Town of Vail for development review. 228 How would an addition, deletion, or change to the plan be in concert with the plan in general? •The proposed addition to the LHMP is in concert with the plan in general as it simply provides additional detail as to the implementation of the recommended pedestrian connection from the South Frontage Road, down through the Evergreen Lodge site, over the landscape lid, and across Lot 10. •Now that the redevelopment of Vail Health is complete, and plans for The Evergreen have been reviewed and approved, this is the logical next step - providing a cohesive plan that integrates the build environment with the plaza at Lot 10. 229 How would an addition, deletion, or change to the plan be in concert with the plan in general? 2.3.1 Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents.  Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character.  2.3.2 Vitality and Amenities We must seize the opportunity to enhance guest experience and community interaction through expanded and additional activities and amenities such as performing arts venues, conference facilities, ice rinks, streetscape, parks and other recreational improvements.  2.3.6 Creative Financing for Enhanced Private Profits and Public Revenues Financially creative and fiscally realistic strategies must be identified so that adequate capital may be raised from all possible sources to fund desired private and public improvements. (LHMP, pg. 2-2,3) The proposed amendment furthers these goals. 230 How would an addition, deletion, or change to the plan be in concert with the plan in general? Civic Area Plan: Lot 10 – 0.5 acres Lot 10 includes a portion of the Gore Creek Trail, and a parking lot on the northern third of the property that for many years has been used by Library Staff. The parking lot is approximately 12,000 square feet in size and is integrated with Vail Health’s adjoining parking lot. For the past few years, much of this parking lot has been used by Vail Health for construction staging during the redevelopment of the campus. The site is zoned General Use. Land immediately to the north of Lot 10 is part of the Evergreen Lodge site. The Lionshead Redevelopment Master Plan contemplates the redevelopment of the Evergreen Lodge. If or when this occurs, the Master Plan suggests a pedestrian corridor be developed along the south side of the site that would connect Lot 10 with the South Frontage Road and the Municipal Building Site. Middle Creek is located immediately west of Lot 10. This portion of Middle Creek is located on a parcel of land owned by the Eagle River Water and Sanitation District. This creek corridor is currently overrun with vegetation and the creek appears to have been channelized. It could benefit from reclamation. (Civic Area Plan Pg. 16) 231 How would an addition, deletion, or change to the plan be in concert with the plan in general? THE BIG IDEA •Replace the existing parking lot with a new outdoor public space. •Design and animate this public space to make it an appealing destination for pedestrians along the Town’s primary pedestrian corridor between Vail Village and Lionshead. •Restore and enhance the Middle Creek corridor and integrate this creek with Lot 10 improvements. THE APPROACH •Town funded initiative •Potential for design and funding collaborations with Evergreen Lodge, Vail Health and Eagle River Water and Sanitation District (ERWSD). •Various alternatives for the design and use of this outdoor space (i.e., a place for public art, whimsical elements like a children’s treehouse, hardscape and landscape improvements, seating areas, food carts). Civic Area Plan: Lot 10 and the Middle Creek Parcel DESIGN AND PLANNING CONSIDERATIONS •Coordinate with the Evergreen Lodge on how their improvement plans could integrate with improvements to Lot 10. •Identify locations to replace existing Librarian parking on Lot 10, alternatives could include dedicated spaces within the Lionshead Parking Structure, or at the Municipal Building Site. •Coordinate with ERWSD on their Middle Creek parcel to allow for the entire creek corridor to be addressed. •Coordinate with the Town’s Environmental Sustainability Department on Middle Creek restoration and enhancement and how educational opportunities could be incorporated into this project. •Evaluate how the existing abutments for the old Hwy 6 bridge over Middle Creek can be maintained and made a part of landscape improvements. 232 Thank You 233 AGENDA ITEM NO. 6.1 Item Cover Page DATE:January 21, 2025 TIME:30 min. SUBMITTED BY:Stephanie Bibbens, Housing ITEM TYPE:Action Items AGENDA SECTION:Action Items (8:00pm) SUBJECT:Resolution No. 4, Series of 2025, A Resolution Approving A Town of Vail Timber Ridge Village Employee Housing Unit Deed Restricted Credit Program (8:00pm) SUGGESTED ACTION:Approve, approve with amendments, or deny Resolution No. 4, series of 2025. PRESENTER(S):Jason Dietz, Housing Director and George Ruther, Ruther Associates LLC VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Resolution 4 2025 Deed Restriction Credit Program EHU Deed Restriction Credits at Timber Ridge Village Policy Recommendation 01-07-2025 EHU Credit Slide 01212025 mj.pptx 234 RESOLUTION NO. 4 Series of 2025 A RESOLUTION APPROVING A TOWN OF VAIL TIMBER RIDGE VILLAGE EMPLOYEE HOUSING UNIT DEED RESTRICTION CREDIT PROGRAM WHEREAS,the Town wishes to adopt an Employee Housing Unit (“EHU”) deed restriction credit program (the “Program”) in an effort to attract more buyers to purchase homes at the new Timber Ridge Village and bring greater value to Timber Ridge Village homebuyers and Vail community; and WHEREAS, the Program will allow Timber Ridge Village homeowners to acquire, through the purchase, EHU deed restriction credits that can be used by themselves, or transferred, sold, or otherwise assigned to another person or entity to offset a future EHU deed restriction obligation, and thereby allowing the Timber Ridge Village development site to be a receiving site for the acceptance of EHU deed restriction obligations generated elsewhere within the Town of Vail. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1.The Town Council hereby authorizes the Town Manager to administratively create and execute the Program, in a form approved by Town Attorney, and further authorizes the Town Manager to take any necessary step and to execute any documents required to effectuate the intent of this Resolution. Section 2.The Program shall contain the following parameters: EHU credits at Timber Ridge Village shall be acquired through a purchase of a credit. Not more than 86,500 square feet of EHU credits shall be available for purchase by home buyers. Individual and business owner home buyers shall be eligible for participation in the EHU deed restriction credit program. Future individual and business owner home buyers, as well as buyers under contract and in good standing at the time of the adoption of the EHU credit program, are eligible for participation. The EHU deed restriction credit shall be purchased at the time of the closing on the original sale of each home from Triumph Development to the first purchaser. Once the original home sale has closed, the Town will no longer offer an EHU deed restriction credit for purchase on the home. The terms of an EHU deed restriction credit shall be enumerated within the special provisions section of the purchase and sale agreement. Said terms shall be negotiated 235 exclusively between the Town of Vail and the home buyer. Triumph Development shall administer the transaction at the direction of the Town of Vail. The value of the EHU deed restriction credit shall be exempt from the earnest money down payment calculation of the purchase and sale agreement. All additional net sales proceeds generated from the EHU deed restriction credit program shall be accrued to the sole benefit of the Town of Vail. The agreements executed by and between the Town of Vail, Triumph Development, and First Bank shall be amended accordingly. Additional net sales proceeds collected from the EHU deed restriction credit program should be deposited in the Town of Vail Housing Fund to aid in the creation of additional deed restrictions through housing development, programs and initiatives. The redemption period of all EHU credits purchased through the Timber Ridge Village deed restriction credit program shall expire on December 31, 2035. Any unused credit as of January 1, 2036, shall become null and void. An EHU credit may be redeemed in full, or in part, during the redemption period. Any unused credit balance shall become null and void as of January 1, 2036. The Town of Vail reserves the right to terminate the EHU deed restriction credit program at any time at its sole discretion. The Town of Vail, however, shall honor deed restriction credits acquired prior to the termination of the program. To the extent feasible, the Town of Vail will implement program terms which may allow EHU deed restriction credits to be financeable through a mortgage lender. For instance, all EHU deed restriction credits shall be fully assigned to the mortgage lender without added cost with the assignability provision coinciding with the duration term of the mortgage loan. The value of the credit to be purchased is commensurate with the terms of the deed restriction, the terms of the credit purchased, and the type of home purchased. For instance, if the credit purchased for a four-bedroom home and is to be freely assignable, transferrable, non-project specific, or without a limited sunset provision, its value is different than if the credit is purchased for a two-bedroom home and cannot be assigned, transferred, or has a limited sunset provision. o The following flat fee values shall be added to the retail purchase price of a home at Timber Ridge Village to acquire an EHU deed restriction credit: Studio – 15% One Bedroom – 25% Two Bedroom – 20% Three Bedroom – 10% Four Bedroom – 10% o An added fee of 7.5% of the retail purchase price of the home shall be applied for an assignability and transferability clause. Mortgage lender assignability shall be automatic and exempt from this fee. o The future value of the EHU credit shall be determined based upon the provisions of the Vail Town Code adopted at the time the EHU credit is redeemed. 236 Recorded EHU deed restrictions or existing deed restriction obligations may be exchanged for new deed restrictions at Timber Ridge Village, subject to the exchange rates established in the Section 12-13-5, Employee Housing Unit Deed Restriction Exchange Program. This shall be permitted as an administrative action provided the request complies with the criteria and findings prescribed in 12-13-5(F)(1) and (F)(3)(a)(1-7) and (F)(3)(b)(1-4). o No added fees shall apply in the instance of an approved EHU exchange as the required exchange rate multiplier compensates the Town of Vail for the exchange. o An EHU credit purchased through the Timber Ridge Village Deed Restriction EHU Credit Program, regardless of deed restriction credit terms shall not apply to an EHU exchange. The Town of Vail Housing Department shall establish an internal accounting system and protocol for tracking and verifying deed restriction credits acquired and redeemed through the EHU deed restriction credit program for the term of the deed restriction. The accounting system shall be audited annually. All EHU credits purchased shall be documented and recorded with the Eagle County Clerk & Recorder’s Office as an exhibit to the deed restriction. Section 3. This Resolution shall take effect immediately upon its passage. INTRODUCED,PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 21st day of January,2025. _________________________ Travis Coggin,Mayor ATTEST: Stephanie Kauffman, Town Clerk 237 75 South Frontage Road West Housing Department Vail, Colorado 81657 970.479.2150 vailgov.com MEMORANDUM To:Vail Town Council From: George Ruther, Principal, Ruther Associates LLC Jason Dietz, Housing Director, Town of Vail Date:January 21, 2025 Re:Timber Ridge Village – EHU Deed Restriction Credit Program I.PURPOSE The purpose of this agenda item is to present an EHU deed restriction credit program to the Vail Town Council allowing home buyers at the new Timber Ridge Village to purchase an EHU deed restriction credit upon purchase of the homes.The stated objective of the deed restriction credit program is to attract more buyers to purchasehomes at the new Timber Ridge Village and bring greater value to Timber Ridge Village homebuyers and the Vail community. II.THE TIMBER RIDGE EHU DEED RESTRICTION PROGRAM This new program allows Timber Ridge Village homeowners to acquire, through purchase, EHU deed restriction credits that can be used by themselves, or transferred, sold, or otherwise assigned to another person or entity to offset afuture EHU deed restriction obligation. In essence, the Town of Vail is allowing the Timber Ridge Village development site to be receiving site for the acceptance of EHU deed restriction obligations generated elsewhere within the Town of Vail. This new approach to deed restriction creation is a direct response to an ever-changing community housing market in Vail which requires an innovative shift in housing policy. The following terms shall apply to the Timber Ridge EHU Deed Restriction Credit Program: EHU credits at Timber Ridge Village shall be acquired through a purchase of a credit. Not more than 86,500 square feet of EHU credits shall be available for purchase by home buyers. Individual and business owner home buyers shall be eligible for participation in the EHU deed restriction credit program. 238 Town of Vail Future individual and business owner home buyers, as well as buyers under contract and in good standing at the time of the adoption of the EHU credit program, are eligible for participation. The EHU deed restriction credit shall be purchased at the time of the closing on the original sale of each homefrom Triumph Development to the first purchaser. Oncethe original home sale has closed, the Town will no longer offer an EHU deed restriction credit for purchase on the home. The terms of an EHU deed restriction credit shall be enumerated within the special provisions section of the purchase and sale agreement. Said terms shall be negotiated exclusively between the Town of Vail and the home buyer. Triumph Development shall administer the transaction at the direction of the Town of Vail. The value of the EHU deed restriction credit shall be exempt from the earnest money down payment calculationof the purchase and sale agreement. All additional net sales proceeds generated from the EHU deed restriction credit program shall be accrued to the sole benefit of the Town of Vail. The agreements executed by and between the Town of Vail, Triumph Development, and First Bank shall be amended accordingly. Additional net sales proceeds collected from the EHU deed restriction credit program should be deposited in the Town of Vail Housing Fund to aid in the creation of additional deed restrictions through housing development, programs and initiatives. The redemption period of all EHU credits purchased through the Timber Ridge Village deed restriction credit program shall expire on December 31, 2035. Any unused credit as of January 1, 2036, shall become null and void. An EHU credit may be redeemed in full, or in part, during the redemption period. Any unused credit balance shall become null and void as of January 1, 2036. The Town of Vail reserves the right to terminate the EHU deed restriction credit program at any time at its sole discretion. The Town of Vail, however, shall honor deed restriction credits acquired prior to the termination of the program. To the extent feasible, the Town of Vail will implement program terms which may allow EHU deed restriction credits to be financeable through a mortgage lender. For instance, all EHU deed restriction credits shall be fully assigned to the mortgage lender without added cost with the assignability provision coinciding with the duration term of the mortgage loan. The value of the credit to be purchased is commensurate with the terms of the deed restriction, the terms of the credit purchased, and the type of home purchased. For instance, if the credit purchased for a four-bedroom home and is to be freely assignable, transferrable, non-project specific, or without a limited sunset provision, its value is different than if the credit is purchased for a two-bedroom home and cannot be assigned, transferred, or has a limited sunset provision. o The following flat fee values shall be added to the retail purchase price of a home at Timber Ridge Villageto acquire an EHU deed restriction credit: Studio – 15% One Bedroom – 25% Two Bedroom – 20% Three Bedroom – 10% Four Bedroom – 10% 239 Town of Vail o An added fee of 7.5% of the retail purchase price of the home shall be applied for an assignability and transferability clause. Mortgage lender assignability shall be automatic and exempt from this fee. o The future value of the EHU credit shall be determined based upon the provisions of the Vail Town Code adopted at the time the EHU credit is redeemed. Recorded EHU deed restrictions or existing deed restriction obligations may be exchanged for new deed restrictions at Timber Ridge Village, subject to the exchange rates established in the Section 12-13-5, Employee Housing Unit Deed Restriction Exchange Program. This shall be permitted as an administrative action provided the request complies with the criteria and findings prescribed in 12-13-5(F)(1) and (F)(3)(a)(1-7) and (F)(3)(b)(1-4). o No added fees shall apply in the instance of an approved EHU exchange as the required exchange rate multiplier compensates the Town of Vail for the exchange. o An EHU credit purchased through the Timber Ridge Village Deed Restriction EHU Credit Program, regardless of deed restriction credit terms shall not apply to an EHU exchange. The Town of Vail Housing Department shall establish an internal accounting system and protocol for tracking and verifying deed restriction credits acquired and redeemed through the EHU deed restriction credit program for the term of the deed restriction. The accounting system shall be audited annually. All EHU credits purchased shall be documented and recorded with the Eagle County Clerk & Recorder’s Office as an exhibit to the deed restriction. 240 Timber Ridge Village – EHU Deed Restriction Credit Program RUTHER ASSOCIATES LLC 1 241 Timber Ridge Village I EHU Deed Restriction Credit Program I This new program offers Timber Ridge Village homebuyers an opportunity to acquire, through purchase, EHU deed restriction credits that can be used by the homeowner, or transferred, sold, or otherwise assigned to another person or entity to meet a future EHU deed restriction obligation. EHU deed restrictions have value. The objective of the deed restriction credit program is to bring greater value to the Timber Ridge Village homes thereby attracting more buyers to purchase homes at the new Timber Ridge Village. Why create a deed restriction purchase program? How does the program work? What is the value to the Community? The sale of deed restriction credits incentivize the recording of deed restrictions sooner than otherwise obligated. The community gets the benefits of more housing sooner. RUTHER ASSOCIATES LLC 2 242 Timber Ridge Village I EHU Deed Restriction Credit Program I •Credits are acquired through purchase •Not more than 86,500 square feet of credits are available for purchase •Individual and business owner home buyers are eligible to participate in the program •Deed restriction credits are only available for purchase by the first buyer •Terms of a deed restriction purchase are stated in the purchase and sale agreement •No added down payment is needed to purchase a deed restriction credit •The value of the deed restriction credit must be redeemed by December 31, 2035 •A credit may be redeemed in whole, or in part at anytime during the redemption period •The purchase price of the credit is directly dependent upon the type of home purchased and the terms of the credit •The credit value shall be determined at the time of redemption based on the town code What are the terms of the deed restriction purchase program? RUTHER ASSOCIATES LLC 3 243 Timber Ridge Village I EHU Deed Restriction Credit Program I Studio Home – Unit C406/Building C – 477 sq. ft. Retail Price - $416,264 Deed Restriction Credit Base Fee (+15%) - $62,440 Assignability Clause Fee (+7.5%) - $31,220 Total PurchasePrice incl. EHU Credit w/Assignability - $509,924* (*excludes parking) Cost of deed restriction credit - $93,660 Cost per square foot - $196.35 Redemption Value – 477 sq. ft. or 1.25 employees Deed Restriction Credit Purchase Example: RUTHER ASSOCIATES LLC 4 244 Timber Ridge Village I EHU Deed Restriction Credit Program I •All additional net sales proceeds generated by the program accrue the sole benefit of the Town of Vail •Additional net proceeds are to be used to create more deed restrictions •The Town of Vail will negotiate the terms of a credit purchase •To the extent feasible, the Town will structure the terms of a credit purchase to be financeable by a mortgage lender •The Town of Vail shall record a copy of the credit purchase agreement in the public record •An internal accounting systemand protocol for tracking shall be created and audited annually •The Town of Vail reserves the right to terminate the sale of deed restriction credits at anytime in its sole discretion What does the fine print say? RUTHER ASSOCIATES LLC 5 245 Timber Ridge Village I EHU Deed Restriction Credit Program I •Adopt Resolution No. 4, Series of 2025 •Target a launch date for the program •Define the administrativeprocesses of transacting a deed restriction credit purchase •Establish an internal procedure and protocol for tracking the purchase and redemption of deed restriction credits •Amend legal documents (i.e. PSA, deed restriction credit purchase agreement, etc.) •Market the new program to existingand potential Timber Ridge Village homebuyers What are the next steps in launching the EHU deed restriction program? RUTHER ASSOCIATES LLC 6 246