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HomeMy WebLinkAbout2025-01-28 VLHA Agenda1.Call to Order (3:00pm) 2.Citizen Participation (5 min.) 3.Approval of Minutes (5 min.) 3.1 Approval of January 14, 2025 Minutes 5 Mins Presenter(s): Missy Johnson 4.Main Agenda (30 min.) 4.1 363 Beaver Dam Circle EHU Exchange Application 30 Mins Presenter(s): George Ruther, Principal, Ruther Associates LLC 5.Matters from the Chairman and Authority Members (5 min.) 6.Executive Session (15 min.) Executive Session pursuant to: C.R.S. §24-6-402(4)(a) - to consider the purchase, acquisition, lease, transfer or sale of any real, personal or other property interest, §24-6-402(4)(e) to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations and instruct negotiators and on the topic of: Vail InDEED Application. 7.Any Action as a Result of Executive Session (5 min.) 8.Adjournment 5:00 pm (estimate) 9.Next Meeting Date (February 11, 2025) VAIL LOCAL HOUSING AUTHORITY MEETING Agenda Virtually by Zoom Zoom meeting link: https://vail.zoom.us/j/83110634258 3:00 PM, January 28, 2025 2025-1-14 VLHA Minutes.pdf 363 Beaver Dam Circle EHU Exchange 01282025.pdf Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vail.gov. All Town Council meetings will be streamed live by High Five Access Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five Access Media website the week following meeting day, www.highfivemedia.org. Please call 970-479-2460 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. 1 AGENDA ITEM NO. 3.1 Item Cover Page DATE:January 28, 2025 TIME:5 Mins SUBMITTED BY:Martha Anderson, Housing ITEM TYPE:Approval of Minutes AGENDA SECTION:Approval of Minutes (5 min.) SUBJECT:Approval of January 14, 2025 Minutes SUGGESTED ACTION: PRESENTER(S):Missy Johnson VAIL LOCAL HOUSING AUTHORITY AGENDA ITEM REPORT ATTACHMENTS: 2025-1-14 VLHA Minutes.pdf 2 Vail Local Housing Authority Minutes Tuesday, January 14, 2025 3:00 PM Vail Town Council Chambers and virtually by Zoom PRESENT ABSENT Steve Lindstrom Kristin Kenny Williams Craig Denton Dan Godec Christine Santucci STAFF Jason Dietz, Housing Director Martha Anderson, Senior Housing Coordinator Missy Johnson, Housing Coordinator 1. Call to Order (3:00pm) Call to order at 3:01 p.m. 2. Citizen Participation (5 min.) No comments. 3. Approval of Minutes (5 min.) 3.1 Approval of December 10, 2024 Minutes Presenter(s): Missy Johnson 2024-12-10 VLHA Minutes.pdf MOTION: Williams SECOND: Santucci PASSED: 5 - 0 Williams moved to exit regular session and move into executive session at 3:03 p.m. MOTION: Williams SECOND: Godec PASSED: 5 - 0 4. Executive Session (35 min.) Executive Session pursuant to: C.R.S. §24-6-402(4)(a) - to consider the purchase, acquisition, lease, transfer or sale of any real, personal or other property interest, §24-6-402(4)(e) to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations and instruct negotiators and on the topic of Timber Ridge Village Employee Housing Units Deed Restriction Credit Program. C.R.S. §24-6-402(4)(e), Determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, and instructing negotiators relevant to Future Housing Projects. Kristin Kenny Williams made a motion to Approve Exited Executive Session and re- entered regular session at 4:16 p.m. 5. Any Action as a Result of Executive Session Williams directed staff to move forward as discussed during executive session. 3 MOTION: Williams SECOND: Denton PASSED: 5 - 0 6. Matters from the Chairman and Authority Members (5 min.) Dietz provided an update regarding the Short-Term Rental (STR) annual license fees based on the recent first reading at Town Council. The council agreed to adding an annual fee of $1,200 per bedroom, annually, and to change the registration from February to June. That fee would generate just over $8M applicable to housing and conversation ensued around the regulations and tracking of the program which is monitored through the finance department. The Authority supports passing of the changes presented in preparation for the second reading based on consensus. CDOT East Vail has not closed but it is scheduled to close at the end of the month. Lindstrom and Deitz provided an update regarding the LPC Grant. An executed agreement has been completed with Mauriello Planning Group (MPG) to streamline workforce housing applications in effort to tighten up the entitlement process. Additional initiatives involve updates to residential linkage, commercial linkage and inclusionary zoning, all in aiming to fulfill Prop 123 initiatives. Housing staff is seeking a new program for EHU compliance to better streamline the process for both staff and EHU owners. Lindstrom suggested investigating the use of EHU mitigation bank and how it is tracked by other communities, such as Aspen. A Development Specialists/Planner position within the Housing Department will be posted sometime soon. Wiliams provided an update regarding the VLHA website, Authority emails, and next steps. The Authority members have been reaching out to the County Commissioners. Lindstrom has been attending quarterly meetings with County and the County Commissioners also attend those meetings. The Authority could still provide a memo to Senator Dylan Roberts and the Authority has the opportunity to continue to be in front commissioners with the ways that resort communities vary from urban areas and the AMI structure is significantly different. The Authority agrees that any touch points or connections are valuable and worth continued communication. The Housing Needs Assessment study is getting dangerously close to completion which should help with the future application towards Prop 123 funding for mountain communities. 7. Adjournment 4:45 pm (estimate) 8. Next Meeting Date (January 28, 2025) 4 AGENDA ITEM NO. 4.1 Item Cover Page DATE:January 28, 2025 TIME:30 Mins SUBMITTED BY:Martha Anderson, Housing ITEM TYPE:Main Agenda AGENDA SECTION:Main Agenda (30 min.) SUBJECT:363 Beaver Dam Circle EHU Exchange Application SUGGESTED ACTION: PRESENTER(S):George Ruther, Principal, Ruther Associates LLC VAIL LOCAL HOUSING AUTHORITY AGENDA ITEM REPORT ATTACHMENTS: 363 Beaver Dam Circle EHU Exchange 01282025.pdf 5 ____________________________________ RUTHER ASSOCIATES LLC P.O. Box 6516, Vail, CO. 81658 (970) 376-2675 george@rutherassociates.com I. Description of the Request The applicant, A2Z Holdings, LLC, the ownership entity of the residential property located at 363 Beaver Dam Circle, Vail, CO, is requesting approval of an EHU exchange application, consistent with the provisions of Section 12-13-5, Employee Housing Unit Deed Restriction Exchange Program, of the Vail Town Code. The applicant is requesting the release of the recorded deed restriction, dated December 27, 2002, on an existing 459 square foot Type II EHU in exchange for a fee in lieu payment of $275,400 to the Town of Vail. II. Background A Type II EHU deed restriction was executed and recorded between the Town of Vail and the applicant on December 27, 2002. The deed-restricted dwelling unit is a studio, one bathroom home located within the residence located at 363 Beaver Dam Circle. According to the recorded deed restriction, the dwelling unit is 459 square feet in size and shall be leased to and occupied by tenants who are full-time employees who work in Eagle County. Exchanges of recorded deed restrictions are permitted subject to the terms and provisions of Section 12-13-5, Employee Housing Unit Deed Restriction Exchange Program, of the Vail Town Code. According to the Vail Town Code, “The exchange program allows the Town Council to release a deed restriction from an existing employee housing unit in exchange for the placement of an employee housing deed restriction on another dwelling unit and/or a fee in lieu payment made to the Town of Vail.” Historically, the Town of Vail and Vail Local Housing Authority have successfully relied upon this program of the Vail Town Code to advance the Town’s housing policies and adopted housing goal of the Vail community to better ensure the occupancy od deed-restricted homes for Vail residents. Created in 2008, the exchange program has resulted in dozens of net new, deed-restricted homes within the Vail community. According to Section 12-13-5, (C), of the Vail Town Code, the existing EHU is located within the mapped area of the Commercial Job Core. Further, the Town Code states, “if the exchange EHU is within the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of three times the gross residential floor area (GRFA) of the exchange EHU.” 6 ____________________________________ As such, per Section 12-13-5(c) of the Vail Town Code, a proposed exchange needs to accommodate at least 1,377 square feet (459 sq. ft. @ 3x exchange rate multiplier) of net new, deed-restricted, gross residential floor area (GRFA). On January 5, 2025, the applicant received a conditional approval of a design review application (DRB24-0488) authorizing the “addition” of 459 square feet to the existing home at 363 Beaver Dam Circle. The approval is conditioned upon the approval of an EHU exchange application and the subsequent removal of any kitchen facilities within the existing deed- restricted area of the home. III. EHU Exchange Proposal The applicant is proposing to provide the Town of Vail a fee in lieu payment in the exchange for the release of the deed restriction recorded at the property located 363 Beaver Dam Circle. The applicant is offering to grant the Town of Vail $275,400 to facilitate the Town’s acquisition of at least 1,377 square feet of GRFA, or $200 per square foot and secure a new “performing” deed restriction(s). The $275,400 would be paid to the Town of Vail upon the recording of a mutually executed release of deed restriction with Eagle County Clerk & Recorder’s office. This amount is equal to 20% of the fair market value (FMV) of free-market residential square footage at a market value of $1,000 per square foot. Based upon the Town’s five most recent home purchases for deed restriction purposes, the average FMV per square foot was $884.26 ($200/sq.ft. equals 23% of ave. FMV). Historically speaking, through the Vail InDEED Deed Restriction Purchase Program, the Vail Local Housing Authority and the Vail Town Council have successfully acquired deed restrictions for 18% - 20% of FMV of the home. With this in mind, the grant of $275,400 more than adequately allows the Town to acquire at least 1,377 square feet of new deed-restricted GRFA. IV. Recommendation The applicant has demonstrated compliance with the applicable provisions of the Vail Town Council. To that end, the applicant recommends that the Vail Local Housing Authority and the Vail Town Council approve the EHU exchange application, as presented. In doing so, the applicant has demonstrated the following: • that the proposed EHU exchange furthers the Town’s adopted housing goal and aligns with the Town’s adopted housing policy statements, • that the grant of $275,400 in payment in lieu funds adequately affords the Vail Local Housing Authority and Vail Town Council the opportunity to acquire at least 1,377 square feet of net new deed-restricted homes, • that the EHU exchange application complies with the provisions of Section 12-13-5 of the Vail Town Code as demonstrated in the EHU exchange application on file with the Town of Vail, and 7 ____________________________________ • that the EHU exchange program is an effective tool to increase the supply of new deed restrictions within the Vail community in partnership with private sector partners, which in this case is at a 3 times multiplier. 8