Loading...
HomeMy WebLinkAbout2025-04-01 Agenda and Supporting Documentation Town Council Afternoon Meeting1.Site Visit to Lot 10 (1:00pm) 281 W. Meadow Drive Vail, CO 81657 (30 min.) 2.Regular afternoon Town Council meeting will convene after the Vail Reinvestment Authority at 1:40pm 3.Call to Order (1:40pm) 4.Interviews for Boards and Commissions (1:40pm) 4.1 Interviews for the Planning and Environmental Commission (1:40pm) 45 min. Interview candidates that are interested in serving on the PEC. Presenter(s): Steph Johnson, Executive Coordinator/Deputy Town Clerk Background: Three vacancies exist on the Planning and Environmental Commission and nine applicants have submitted applications. The term of the new appointments will begin on April 1, 2025 and expires on March 31, 2027 (two- year terms). Duties and functions of the PEC include review and determination of requests for variances and conditional use permits, and recommendations to Town Council on special development districts, subdivisions, re-zonings, various Town of Vail proposed plans and other community matters per the Town Charter and ordinances. 5.Presentation/Discussion (2:25pm) 5.1 Lot 10 Design Concepts Discussion (2:25pm)35 min. Listen to presentation and provide feedback. Presenter(s): Gregg Barrie, Town Landscape Architect and John Rasmussen, TEN X TEN Background: In late 2024, an idea was discussed with Town Council to partner with the Evergreen Redevelopment for the design, construction, and future maintenance of the Lot 10 Park. VAIL TOWN COUNCIL MEETING Afternoon Session Agenda Vail Town Council Chambers and virtually by Zoom. Zoom meeting link: https://vail.zoom.us/webinar/register/WN_9Nzr2KfvSPe61JAxRLc6jw 1:00 PM, April 1, 2025 Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Council will consider an item. PEC Applicants 1 5.2 Geothermal Project Update (3:00pm)20 min. Listen to presentation and provide feedback. Presenter(s): Kristen Bertuglia, Environmental Sustainability Director and Cameron Millard, Clean Energy Specialist Background: Colorado Energy Office awarded Town of Vail $250,000 last summer to pursue design of a geothermal heating district to incorporate key facilities and provide a clean energy alternative to snowmelting, the town's largest consumer of fossil gas. Town Council has budgeted an additional $150,000 to complete the project and the grant award. 5.3 STR Excise Tax Ballot Update (3:20pm)15 min. Listen to update and provide feedback. Presenter(s): Lauren Noll, Revenue Manager and Carlie Smith, Finance Director Background: Please see attached memo. 5.4 West Middle Creek Financial Update (3:35pm)15 min. Listen to update and provide feedback. Presenter(s): Carlie Smith, Finance Director Background: Please see attached memo. 6.DRB/PEC (3:50pm) 6.1 DRB/PEC (5 min.) 7.Information Update (3:55pm) 7.1 January 16, 2025 VLMDAC Meeting Minutes 7.2 March 2025 Revenue Update 8.Matters from Mayor, Council, Town Manager and Committee Reports (3:55pm) 8.1 Matters from Mayor, Council, and Committee Reports (15 min.) 8.2 Town Manager Report (5 min.) Council Memo - Lot 10 Concept Discussion Lot 10 & Evergreen Redevelopment Presentation Council Memo - Geothermal Update Attachment A. Vail Whiteboarding Session Attachment B. Vail Energy District Workshop Minutes Attachment C. McKinstry Thermal Energy Network Development Proposal Staff Presentation - Geothermal Update Council Memo - STR Excise Tax Update Council Memo - West Middle Creek Market Update Council Memo - WMC Monday Update 3-31-2025 Staff Presentation - West Middle Creek Financial Update PEC Results 3-24-2025 VLMDAC Meeting Minutes 1-16-2025 March Revenue Update 2 8.3 Council Matters and Status Report 9.Executive Session (4:15pm) (60 min.) Executive Session pursuant to: 1. C.R.S. §24-6-402(4)(a) - to consider the purchase, acquisition, lease, transfer or sale of any real, personal or other property interest, C.R.S. §24-6-402(4)(b) - to hold a conference with the Town Attorney, to receive legal advice on specific legal questions and C.R.S. §24-6-402(4)(e) to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations and instruct negotiators and on the topic of the development of the project known as West Middle Creek; and 2. C.R.S. §24-6-402(4)(e) - to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations and instruct negotiators on the topic of options regarding potential recreational ice facilities; and 3. C.R.S. §24-6-402(4)(b) - to hold a conference with the Town Attorney, to receive legal advice on specific legal questions topics of the municipalization of trash hauling services and permitted and conditional uses in the Town's commercial zone districts. 10.Recess (5:15pm estimated) Town Manager's Report 4-01-2025 Council Matters 4-01-2025 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. 3 AGENDA ITEM NO. 4.1 Item Cover Page DATE:April 1, 2025 TIME:45 min. SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Main Agenda AGENDA SECTION:Interviews for Boards and Commissions (1:40pm) SUBJECT:Interviews for the Planning and Environmental Commission (1:40pm) SUGGESTED ACTION:Interview candidates that are interested in serving on the PEC. PRESENTER(S):Steph Johnson, Executive Coordinator/Deputy Town Clerk VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: PEC Applicants 4 Annalise M. Durante C: (630) 414-5663 | E: annalise.durante@gmail.com March 24th, 2025 Town of Vail Planning and Environmental Commission To Whom It May Concern: For the past few years, I have been working as both a Senior Sustainable, Responsible and Impact Investing (SRII) Analyst and an Investment Counselor at an independent Bay Area investment firm, Bailard. As a member of the Sustainable, Responsible and Impact Investing team, I’ve had the opportunity to become deeply engaged in the exciting and evolving field of sustainable investing. Since we are a fairly small team, I have an expansive set of responsibilities including research, portfolio management, impact/sustainability reporting, and the management of many high touch and complex client relationships. Additionally, I contribute to the shareholder engagement efforts with our portfolio companies with the goal of improving their behavior on sustainable and responsible investment issues. It is imperative that I stay up to date on sustainable investing trends and research, be able to communicate these to our investment teams and clients and, when appropriate, convert certain issues to investment action. Another key responsibility is the annual reporting of Bailard’s compliance with the United Nations-led Principles for Responsible Investment. These various duties have enhanced my ability to approach challenges with an analytical and innovative mindset, succeed in a fast paced and dynamic environment, and work well both independently and with a team. In my current role, I’ve gained knowledge and experience that will be integral to being an effective member of the Planning and Environmental Commission. The responsibilities of the role are well-aligned with my experience and passion, and I am very keen to give back to the community and Town that I love. I am confident that my experience, drive, exceptional quality of work, and values make me an ideal candidate for this role. I look forward to sharing more with you about how I can contribute to the Planning and Environmental Commission. Thank you for your time and consideration. Sincerely, Annalise Durante 5 6 7 8 Annalise M. Durante C: (630) 414-5663 | E: annalise.durante@gmail.com PROFESSIONAL EXPERIENCE San Francisco, CA and Remote January 2023 to Present Bailard, Inc. ESG Analyst and Investment Counselor Senior ESG Analyst and Portfolio Associate- Sustainable, Responsible and Impact Investing (SRII) group June 2017 to December 2021 Conducted ESG/SRI research on portfolio companies and impact themes Helped develop and maintain the proprietary ESG CaptureTM scoring methodology Led the firm’s corporate engagement efforts and worked with outside corporate engagement partners Managed Bailard’s relationship with the United Nations-led Principles for Responsible Investment and owned the annual reporting of the firm’s ESG integration practices Responsible for managing the SRII clients’ portfolios to an ESG/SRI investment strategy Helped create and manage two new ESG, carbon-free investment strategies in 2018, which now have roughly $100MM AUM Contributing writer to many ‘Issue Briefs’, whitepapers and thought pieces covering a wide array of social and environmental issues Freelance ESG Consultant and Writer during year of international travel Remote Worked for several clients writing and consulting on ESG topics January 2022 to December 2022 Citigroup- Institutional Clients Group West Palm Beach, FL Private Bank Analyst June 2014 to July 2016 One of sixteen analysts chosen in North America for Citi’s two-year rotational analyst program, Class of 2014 Duties included: performance reporting and preparing for investment reviews, assisting with construction of appropriate client strategic and tactical asset allocations, various projects related to the traditional investments platform, relationship management and client onboarding, family office client/ prospect management Gained knowledge and experience in private wealth management, investment products, family office structures, and best practices for managing client relationships FELLOWSHIPS AND VOLUNTEER EXPERIENCE The Bailard Foundation Remote Board Member May 2019 to December 2021 Sourced and assessed potential grantees within the Foundation’s focus areas: affordable housing, homelessness & poverty, and financial literacy The Samburu Project Remote Young Leaders Board Member August 2019 to December 2021 Assisted the Board’s Fundraising Committee and helped with planning of the annual fundraising gala FLD Company Phnom Penh, Cambodia Microfinance Volunteer October to November 2016 Spent two months volunteering for the microfinance branch of FLD Company, whose goal is to eradicate rural poverty in Cambodia via the provision of micro loans and business mentorship Edited the Credit Policy and provided suggestions for improved loan terms and business operations Experienced the challenges of working in a country with very limited access to resources, and with an unstable political and socio-economic environment The Civic Accelerator Remote Pipeline Development Fellow January to May 2017 Aided in the venture research, outreach, and selection process for the Spring 2017 cohort of The Civic Accelerator – the first startup accelerator program and investment fund focused on civic ventures EDUCATION University of Miami Coral Gables, FL Bachelor of Science in Business Administration, GPA: 3.5 May 2014 Major in Finance; Minor in International Business Dickinson Scholarship, Provost’s Honor Roll, Dean’s List Anglo-American University Prague, Czech Republic Study Abroad Semester; Spring 2013 LICENSES TECHNICAL SKILLS Series 7 Series 66 Proficient in Microsoft Office Product Suite Proficient in Bloomberg 9 10 11 12 13 14 John Kirschner 1995 Chamonix Lane Vail, CO 81657 jkvail@comcast.net 970 390-6192 March 26, 2025 To whom this may concern: My name is John Kirschner & I am applying for the Planning & Environmental Commission. I have lived in the Town of Vail for 37 years & cannot picture myself living anywhere else. I am mostly retired & have time & energy to commit to this commission. I understand that there is a lot of homework involved & I am willing to do that. Vail has been very good to me & I want to give back to the community. respectfully, John Kirschner 15 16 17 18 JOHN KIRSCHNER 1995 Chamonix Lane Vail, Colorado 81657 970 390-6192 jkvail@comcast.net WORK EXPERIENCE 2020-Present Giro Sport Design. Manage all Pro Programs for CO Vail Ski School. (Vail Resorts) Part-time ski instructor on Vail Mtn. (7 days per winter) 1989-2020 National Sales Manager/Trendsetter & Pro Sales Program Manager/Management Consultant - A Partial List of Employment and Clients Includes: Ardica Technologies, San.Francisco., CA. Ski & Outdoor Industry Liason. Created & managed Trendsetter, Tester & Pro Programs. BAS USA, King of Prussia, PA. Management Consulting, Long Range & Strategic Planning. Consultant for Ski Area Uniform Purchases. Past clients: Aspen Skiing Company, Bristol Mountain, Snowbird Ski & Summer Resort. Degre 7 Skiwear. Van Nuys, CA & France. National Sales Manager. Marmot Mountain Works. Grand Junction, CO. Market Research for skiwear market entry. Nara Sports. Japan. Direct pro sales, product testing, and product line and market development for U.S. operations. Ski Magazine. NY, NY. Ski Tester. SkiNet. NY, NY. (Ski Magazine Internet) Skiwear Correspondent. Vail Associates, Inc. Vail CO. Managed Sister Resort Program & New Skier Program for VAI. Vail Associates, Inc. Vail, CO. Full Certified Ski Instructor Vail Snowsports School (Vail Resorts). Vail, CO. Various marketing projects Vail Sports Medicine Physical Therapy. Vail, CO. Management Consulting, Long Range & Strategic Planning. Viele Construction. Vail, CO. Sales & Marketing, Long Range & Strategic Planning. 1988 Brambilla-France. Denver, CO. Vice President of Sales. 1984-1988 Scott USA. Sun Valley, ID. National Sales Manager. Managed 12 independent sales reps for sales & distribution of Scott poles & goggles. Account base: 1,200 dealers. Maintained 50% market share of ski poles. Increased goggle market share from 20% to 25%. 1976-1984 The North Face. Berkeley,CA. 1976-1977. Managed the North Face Plan (Key Dealer Program). Initiated & Managed the accessories program. 1980. Started The North Skiwear Division. Developed business plan and products. 1980. Uniform National Sales Manager (for ski areas). Developed program with results of over $1,000,000 in annual sales to over 100 areas. Created & managed Trendsetter & Tester Programs. 1981-1984. Skiwear National Sales Manager (for wholesales accounts). Increased T.N.F. skiwear sales from $4,000,000 to $7,000,000 & increased dealer base from 300 to 500 accounts. Managed sales force of 11 independent reps and product development, P&L, and advertising for the division. Retained Uniform Division management. Retained Trendsetter & Tester programs. 1968-1976 Vail Ski School (Vail Associates). Vail, CO. Ski instructor. EDUCATION B.A. in English and Education, Northeastern University. Boston, MA. Graduated 1968. REFERENCES Available upon request. 3/26/25 19 Bobby L’Heureux 2195 Chamonix Ln Apt 6A Vail, CO 81657 Town of Vail As a long- ntribute my skills and experiences to help guide this experience cision- ibility of Sincerely, Bobby L’Heureux 20 21 22 23 24 25 26 27 28 29 March 26, 2025 Submitted electronically Vail Town Council 75 South Frontage Road Vail, CO 81657 Dear Town Council: Please consider me for continued service on the Planning and Environmental Commission (PEC). During and after the pandemic, I observed that interest in living in Vail increased dramatically. Combined with the increased capacity of the Vail Ski Area, we are at an important point in the continued development of Vail. Because of my love of Vail, I would like to continue to have an active role in the protection of the Vail area and, if possible, have a voice in the continued, sustainable development of Vail. My experience on the PEC the last year-plus has only heighted my interest in this effort. To that end, I would like to use my time to assist in helping to ensure that new developments and re- developments in Vail maintain the beauty and grandeur of Vail, and do not cheapen the experience for Town residents and visitors alike. I am available to answer any questions about me, my qualifications or my background, should you or any members of the current PEC wish to inquire. On April 1, I understand that interviews will be conducted. I am out of town for a conference that day, and I could participate by Zoom or telephone, if that works for the Town Council. I realize that there was an issue with my attendance in the fall of 2024. At that time, I was working to finalize a divorce, which is now behind me and no longer a hindrance to my time and commitments. (I also had a three-week trial in Delaware in 2024, which is not the norm for my practice). Best regards, Scott P. McBride ip@lawyer.com 30 31 32 33 34 Scott McBride 5075 Ute Lane Vail, CO 81657 ip@lawyer.com 312.342.6660 Education University of Wisconsin-Madison B.S., with honors, Astrophysics 1995 University of Dayton School of Law J.D., magna cum laude 1998 Relevant Work Experience McAndrews, Held & Malloy, Ltd., Lawyer, 1998-present (became equity partner in 2007); including service on hiring and marketing committees University of Illinois-Chicago Adjunct Professor, 2021-present U.S. Patent Office, patent examiner, 1996 Relevant volunteer experience Planning and Environmental Commission, Town of Vail, late 2023/early 2024 through March 2025 HOA Board (600 owners, $10M budget), including service as President and Treasurer, 2009-2020 Baseball coach, 2011-2021 Birds of Prey, course set-up, 2019, 2021, 2022, 2023 (event not held 2020) Interests: skiing, hiking, road biking 35 Kathryn Middleton 1865 W Gore Creek Dr Vail, CO 81657 (970) 376-1076 katmidds@gmail.com 25th March 2025 Stephanie Kauffman Vail Town Clerk 75 S Frontage Rd Vail, CO 81657 Dear Steph, I am interested in filling a seat on the Planning and Environmental Commission (PEC). My 2.5 years of experience on the Design Review Board taught me how to engage in meaningful discussion regarding the application of town codes with the purpose to uphold the standards of maintaining Vail’s unique character and aesthetic. We faced some controversial applicants where there was some dissent on how best to proceed in our decision, but on all occasions we were able to have dynamic conversations and proceed accordingly to adhere to town code and vote. The PEC is a new opportunity for me to participate in Vail’s short and long- term goals process that ensures a sense of community and preserves the quality of life here. I am good at doing my homework to expand my knowledge on town codes, ordinances, land use, and environmental impact policy, regarding variances and conditional use permits, special development districts, subdivisions, rezoning and proposed plans that come before the Commissioners. The PEC has an important role to advise the Town Council and uphold the Town’s vision in all areas mentioned above and I believe I am up for the challenge and will be an asset to the Commission in the decision making process. This is a great time in my life to give back to my community after living in the valley for forty two years. My regard for the Town of Vail as a community- based entity is strong, it is why I feel that my contribution as a member of the PEC is the right next-step in giving back. Thank you, Kathryn Middleton 36 37 38 39 40 Karen Marie Perez 980 Vail View Drive, Unit A104, Vail, Colorado 81657, Telephone: (720) 838-0564, Email: karen@perezlegalassociates.com March 25, 2025 Via Email: Ms. Stephanie Kauffman Town Clerk Town of Vail, Colorado 75 S. Frontage Road Vail, Colorado 81657 Ms. Kauffman: I am writing to express my interest in a vacant seat on the Vail Planning and Environmental Commission for the Town of Vail, Colorado that is currently posted on the Town’s website. I am a somewhat new resident to Vail, and it is with pleasure that I am pursuing this opportunity become more involved in my community. I am a native of Colorado and have over twenty years of commercial real estate and real estate finance law experience. I am licensed to practice law both in Colorado and California. Additionally, I have had several mayoral appointments as a former resident of Denver, Colorado, as well as Council appointments within the Town of Vail. These appointments and public service include: 1. six years as Board Member of the Planning and Environmental Commission for the Town of Vail (“PEC”); 2. four years as a Board Member on the Planning Board for the City and County of Denver, Colorado (“Denver Planning Board”); 3. four years as a Board Member on the Lowry Economic Redevelopment Authority (“LRA”); and 4. two years as a Board Member on the Lowry Community Land Trust (“LCLT”). During my time on the PEC, I was Vice-Chair from 2020-2023. Also during this time, Town Council made affordable housing a priority, we approved the West Vail Master Plan, which included employee housing for the Double Tree Hotel redevelopment. 41 Ms. Stephanie Kauffman March 26, 2025 Page 2 While on the Denver Planning Board, I was on the committee which redrafted the entire Denver Zoning Code which switched the City from traditional zoning districts to form-based zoning. This involved much work with drafting, interpreting, and implementing regulations, in addition to public meetings and hearings. This experience enables me to understand the perspective of all involved. I believe that the VLHA and those attempting to transact business within the Town can benefit from my ability to find creative solutions to problems which meet the needs of all parties. Equally, important is that I have the ability to learn, to listen, and to help implement new tools required for said solutions. My resume is included in this submittal. Thank you for your consideration. I look forward to hearing from you! Best regards, Karen M. Perez Enclosure 42 43 44 45 CONFIDENTIAL KAREN MARIE PEREZ 980 Vail View Drive, Unit A104, Vail, Colorado 81657 Telephone: (720) 838-0564, Email: karen@perezlegalassociates.com SUMMARY I have 20+ years of solid real estate experience representing clients ranging from corporate and private developers, investors, school districts, landlords, tenants, lenders, housing authorities, non-profits, and public/private partnerships. My practice generally focuses on three areas: (1) Real Estate Transactions- acquisitions, dispositions, commercial leasing and development; (2) Real Estate Finance- lending, loan documentation, equity funds, hedge funds, bonds, municipal finance, special districts loan workouts, refinances, bridge loans, TIFs, special districts, and transit oriented developments; and (3) Housing and Community Development- specifically tax credit transactions (low income, historic, and new markets). All areas require expert knowledge of financing, purchase and sales, leases, easements, licensing, title and survey review, construction documents, and superior negotiation and solution skills. EDUCATION University of Colorado School of Law Juris Doctorate, May 1999 Rothgerber Moot Court Competition; Faculty Excellence Committee Colorado State University B.S. Business Administration –Finance & Real Estate, May 1996 President’s Scholarship (1992-1993); Most Outstanding Diverse Student Scholarship (1992-1996) National Student Exchange at University of Maryland at College Park, Fall 1994 LICENSURE State Bar of California- November 1999 State Bar of Colorado- October 2000 U.S. Supreme Court, May 2011 BOARDS Town of Vail Planning and Environmental Commission- Commissioner 2017-2023, Vice-Chair 2020-2023 Mayor Hickenlooper Transition Team- Member of the City Attorney Committee, Summer 2003-Winter 2010 City and County of Denver Planning Board- Mayoral Appointment, October 2006-September 2010 Lowry Redevelopment Authority- Board of Directors, appointed February, 2002-2006 Lowry Community Land Trust- Board of Directors, appointed February, 2002-2005 Denver Community Leadership Forum- Class of 2004 Hispanic National Bar Association- VP Committees, Treasurer, Reg. President, Finance Committee 2001-2013 Colorado Hispanic Bar Association- Board of Directors 2002-2013; VP Bus. Devel. 2011-2013 Vail Valley Business Women- Board of Directors, Member at Large 2016-2018, Chair-Holiday Soiree 2016-2018 EXPERIENCE Perez & Associates LLC, Denver/Vail, Colorado November 2014-Present; January 2009-November 2013 Managing Member: Draft, negotiate and review all documents (including loan documents) relating to commercial real estate developments, including leasing, land use, real estate finance, bond documents, entitlements, acquisitions, dispositions, low income housing tax credit (LIHTC) transactions, new market tax credit (NMTC) transactions, historic tax credit (HTC) transactions, and medical office building development including leases, purchase and sale agreements, assignments, estoppel certificates, consents, easements, nondisturbance agreements, CCR’s, title, survey, and corporate documents; draft and negotiation all documents related to Neighborhood Stabilization Program (NSP 1 and 2) funds; representation of landlords, tenants, purchasers, sellers, lenders, borrowers, tax credit investors, and developers; continue practice described below. Fox Rothschild LLP, Denver, Colorado November 2013-November 2014 Counsel: Draft, review, negotiate, all documents related to commercial real estate developments, including leases, purchase and sale agreements, estoppel certificates, SNDAs, construction contracts, architect agreements, loan documents, asset purchase agreements, title, development, option, entitlement, and assignment documents. 46 CONFIDENTIAL-Karen Marie Perez Manage, mentor, and train paralegals and associates, coordinate legal team on large projects among and between offices. Continue practice described below. Garcia Calderon Ruiz, LLP, Denver, Colorado September 2007-December 2008 Partner: Joint responsibility for establishing the Denver office of a national law firm. Represented school districts and water districts as general counsel, particularly bond transactions and student housing developments. Drafted, negotiated, and reviewed all documents related to commercial and public/private partnership real estate developments, and LIHTC transactions. Continued practice described below. Kutak Rock LLP, Denver, Colorado October 2006-August 2007 Senior Associate: Structured, drafted, negotiated and reviewed all documents relating to real estate development (including entitlements for commercial, mixed-use, mixed-income and retail), real estate acquisitions and dispositions, lease-up, complex financing, NMTC transactions and HTC transactions, including corporate, financing, commercial real estate, leasing and syndication documents, construction, development, management agreements, and bond issues and issuance. Negotiated work-outs, identify bankruptcy and reorganization issues for commercial and LIHTC transactions. Representation of landlords, tenants, housing authorities, borrowers, developers, tax credit investors, CDEs, and lenders. Continue practice described below. Faegre & Benson LLP, Denver, Colorado April 2001-September 2006 Associate: Drafted, negotiated and reviewed all documents relating to commercial, mixed-use and mixed-income real estate developments, land use, entitlements, acquisitions, dispositions, LIHTC transactions, NMTC transactions, HTC transactions, and medical office building development including leases, purchase and sale agreements, assignments, estoppel certificates, consents, easements, and nondisturbance agreements; drafted, negotiated and reviewed financing documents relating to commercial, mixed-use and multi-family developments, including bond documents; review title policies, commitments and real property surveys; formed corporate entities; drafted and negotiated formation and operating documents, construction contracts, architect agreements, development, service, management, and operational agreements, plus CCIOA declarations and condominium maps. Legal research. Fisher, Sweetbaum & Levin, P.C., Denver, Colorado April 2000-March 2001 Associate: Drafted, negotiated and reviewed all documents relating to commercial real estate development and wireless site acquisitions, including leases, purchase and sale agreements, review title and surveys; form corporate entities; drafted asset purchase agreements, articles of organization and operating agreements. Deloitte & Touche LLP, San Francisco, California September 1999-March 2000 Tax Consultant: Researched various issues relating to state and local tax, e-commerce, and estate and gift tax; drafted memoranda; responded to Internal Revenue Service requests for documents. Justice Alex J. Martinez, Colorado Supreme Court, Denver, Colorado October 1998-March 1999 Judicial Fellow: Researched various legal issues on petition for certiorari; drafted legal memoranda recommending the grant or denial of certiorari; discussed and analyzed pending cases; observed oral arguments. SPECIAL SKILLS/PUBLICATION/OUTSIDE INTERESTS Languages: Proficient in Spanish Certified Mediator: Certified Mediator via Colorado Bar Association. Publications/Speaker Presentations/Interests: “Real Estate Law- Today’s Market” –HNBA National Convention, Minneapolis, MN September 2010 Featured in Denver Business Journal Young Entrepreneurs Series, June 6, 2010 DuPont Minority Counsel Conference- Planning Committee 2006 “Mitigating Risks When Purchasing Brownfields Redevelopment Property” –Colorado Real Estate Journal, August 19, 2003 “Tax Credits 101” –ABA Forum on Affordable Housing, May 2003 Colorado Women’s Bar Association-Member- Professional Development Committee Interests: Skiing, cycling (Vail Valley Vixens member), cooking, yoga, Pilates, SUP, and traveling. 47 48 49 50 51 AGENDA ITEM NO. 5.1 Item Cover Page DATE:April 1, 2025 TIME:35 min. SUBMITTED BY:Gregg Barrie, Public Works ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion (2:25pm) SUBJECT:Lot 10 Design Concepts Discussion (2:25pm) SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Gregg Barrie, Town Landscape Architect and John Rasmussen, TEN X TEN VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Memo - Lot 10 Concept Discussion Lot 10 & Evergreen Redevelopment Presentation 52 To: Vail Town Council From: Department of Public Works Date: April 1, 2025 Subject: Lot 10 Park – Concept Plans Presentation and Discussion Vail Village Filing No. 2 / 281 West Meadow Drive I. PURPOSE The purpose of this agenda item is to provide an opportunity for the Evergreen Lodge design team to present two design concepts for the creation of a public park on “Lot 10”, a town-owned parcel located at the west end of West Meadow Drive. The design team is requesting feedback from the Town Council on the direction of the project. II. BACKGROUND Lot 10 is a small town-owned parcel located between Vail Health and Dobson Ice Arena. It is 0.463 acres in size and is currently developed as a surface parking lot utilized by the Vail Library staff and patrons requiring accessible parking. The parcel is included within the Civic Area Plan study area. The Plan includes the following recommendations: • Involve the community and neighboring property owners in the design of the park • Coordinate with the Evergreen Lodge redevelopment • Identify alternate accessible parking for patrons of the library III. PUBLIC/PRIVATE PARTNERSHIP In late 2024, an idea was discussed with the Town Council to partner with the Evergreen Redevelopment for the design, construction and future maintenance of the Lot 10 Park. On December 3, 2024, the design team presented preliminary ideas for the park to the Town Council. Feedback was generally supportive of the partnership concept and of the initial design concepts for the park. Staff is working with the Evergreen towards an agreement that will be finalized as the project moves forward. IV. COMMUNITY INPUT On January 22, members of the Evergreen Development team joined town staff to host a public Open House at the Library Community Room. Over thirty (30) attendees had an opportunity to review preliminary design concepts, discuss the project with the design team, and to provide feedback. 53 Town of Vail Page 2 Additionally, a survey was posted on the town’s EngageVail website. As of March 25th, thirty-nine (39) responses had been received. A compilation of those responses is included as an attachment to this memorandum. A summary of the feedback received will be presented by the design team. V. NEXT STEPS The design team will evaluate Council feedback and work towards a single design concept to be presented to the Design Review Board in April. The park’s concept approval process will proceed with the Evergreen Redevelop process. Actual construction of the park is likely to begin towards the end of the Evergreen Lodge construction process, which is currently expected to begin in mid-2026 and be completed in 2029. VI. ACTION REQUESTED BY COUNCIL Staff is requesting that the Council provide feedback to the Evergreen Design Team on the design concepts, the process, and other project related goals. Attachments: • Summary of EngageVail responses • Evergreen Design Team presentation 54 Lot 10 Park Sur vey SURVEY RESPONSE REPORT 26 November 2018 - 12 March 2025 PROJECT NAME: Lot 10 Park 55 56 57 Q6. Additional park uses, thoughts, and/or comments: • quiet, • peaceful • place for people to stop on a walk, • eat their lunch (library, hospital, amployees, etc.). • Dobson visitors could use the turf for warmups, • not destination for public events. • Too many people in a small space would disturb the peace of the creek, the homes, and the neighborhood. • The excitement should happen in Lionshead or the Village. • Drivers not following signage and buses could be dangerous. • Redirect the bike path • Eliminate bike path that exits into middle of cul de sac to avoid traffic problems • No more building structures. • nature connection. • outdoors • escaping city life. 58 • environmental connection. • Picnic tables • for small parties to chat, drink/eat or study. • A Meditation labyrinth or zen garden • National Fitness Court • cafe/bakery • Build over the parking lot (landscape lid). • healing garden. • small amphitheater type seating in a natural environment by using flat rocks. Have the seating be limited but facing a "natural" stage with art work defining the boundaries of the stage. • Green space • sit somewhere outside • not sure if this place needs to be actively programmed. • cafe or gathering spot • There is enough public art in places • seating and a few tables • rest and enjoy the surroundings, meet their friends, and gather for a few small events. • play area for children. • A small meeting or community exhibition building could be added, similar to the Betty Ford Alpine garden building. • The location of the green space with Tony Smith-esque sculpture in the design concept sketch makes the park feel less like a place people will stop and hang out and more of a pass through. • The stairs create some sense of engagement, but it would be nice to see the center of the park do something similar instead trying to activate it only with furniture. • It also feels like it needs to choose an identity - either a piazza/destination/event space or a casual/hangout/respite that you stumble upon. • Build worker housing instead. It could be a small dorm like building. 59 Q7 It is important that a public space provides a “Sense of Place,” which could be defined as a mood, impression, or character... Civic Inviting Hang-out Tranquil Gathering Green Community Connection Intimate Open Destination Plaza Natural Active Passive Question options 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 12 8 28 7 4 12 7 11 10 27 12 23 17 20 Optional question (40 response(s), 0 skipped) Question type: Checkbox Question Lot 10 Park Survey : Survey Report for 26 November 2018 to 12 March 2025 Page 15 of 22 60 Q8 Ideas for park features (choose features that interest you for this park, or add your own below) Interactive art or play feature Fire Pit Water Feature Quiet garden space (healing garden or similar) Small turf area Trees and significant landscaping Café-style seating Small stage area Community gathering space Art installations Question options 5 10 15 20 25 30 35 19 16 8 24 32 11 20 20 20 7 Optional question (39 response(s), 1 skipped) Question type: Checkbox Question Lot 10 Park Survey : Survey Report for 26 November 2018 to 12 March 2025 Page 16 of 22 61 Q9 Additional features not listed above: • Benches • Lights. On polls to light the area and walking paths • A commercial offering of food • Build worker housing • Inviting from an aerial view so hospital and evergreen and gondola riders can see what it is from far away • if you create enticing areas people will come like a fire pit. If you put play structures you will have little kids come...if its a natural play area with big rocks to climb on you can create an inviting space for kids and families and not have it be a playground • The river is nearby. Don't need artificial water pumped here. • Bike rack • Community Meeting room or exhibition space. A coffee or sandwich shop seems very important to attract guests and community members!!!! • include a little Grab n go section at the cafe - East entrance to Dobson should integrate to cafe lot 10 to serve as VVIP area for events. Q10. Additional comments on potential park features? • small ice rink • beverages and food. Public facilities. Water fountain and refill bottle spout. • diverse range of activities for the park, which would help create a vibrant and inviting space that appeals to a larger segment of the Vail community. This is without engaging in activities that may disrupt neighboring buildings, such as the Vail Library or Vail International Condominiums. • Cabin architecture like at two elk, salad smoothie and breakfast or lunch foods • San Francisco or even what New York did with the cafe (indoor and openair) of “Tavern on the Green.” • Trees to buffer sound but let Middle Creek be visible. • No Dogs- Maybe somehow have an obstacle to prevent the dogs in at Lot 10 and direct the dog owners down Gore creek trail to Gore Creek where there are plenty of opportunities for the dogs to swim?? • No water feature • This would be a nice stop on the hardscape from Lionshead to the fire station - which is just walking the bus route. • Please No Dog Park area 62 • Café • I love the idea of a water feature (ties in with the natural water elements nearby) but am always concerned about excess water use in our climate. • the interactive action of the art component should be geared toward chill and not children. The shrill shrieking screams of children at play should be sequestered to the library as much as possible. Q11 Given its proximity to important community facilities/amenities (library, ice arena, hospital, and the future Civic Area), what other ideas could make the Lot 10 Park successful? • 15 minutes drop off parking for the library. • Put the art in the existing park on south side of meadow drive. It needs love and is hardly used. • Thoughtfulness needs to be put into eliminating how the current bike/walking path exits onto meadow drive. Create a new path from the proposed lot 10 park and evergreen lodge to the current path along middle creek so there are no longer walkers and bikers exiting the current path onto the road with no safe sidewalk to continue along on . • Again, bike path should be changed to avoid traffic and this could be fixed by extending the path along middle creek towards evergreen project. If sidewalk is heated, this is better for pedestrians and the only road to cross is for bus and municipal vehicles • The park could be a great relaxing location for employees and especially those from the hospital. This area could offer respite for our visitors as they travel between the villages. • Security. Cameras and physical presence by security enforcement would make people feel safe to be in that area. Its dark through that area on the street. • I would propose avoiding activities that could annoy other park-goers, like coal or BBQ pits and concert stages, as they could also generate trash in the park. • Build worker housing instead. • If it is a building, a mini-rec center with an open room for yoga and a climbing wall and air filters like eagle climbing gym • Beautiful Aspen trees (thinking this because they don’t take up too much space). • Space for yoga/meditation • Make it distinctly less busy and noisy than the surrounding structures • although a cafe would be nice ie coffee. I think it would take too long for people to get there to think Oh I will get my morning coffee. • Reading area for adults • Summer programs such as outdoor Yoga, book presentations, a music series etc. 63 • If you want it to be an intentional destination, you're going to need to program it well and advertise. Markets, art, s'mores/chocolate chip cookies around the fire pit on weekends at 3pm, etc. If the Evergreen doesn't put in a cafe, a coffee food truck in the mornings would be nice. • egalitarian linger vibes a la Canal Saint-Martin - cafe is critical for library adjacency. Coffee and books are like PB&J – common consumption the whole area from lot 10 to the TBD Civic area. - highlight the creek to the west; rip that railing off the pedestrian bridge. Place hammocks & comfy seating throughout. – TOV should also extend the pedestrian path on the west side of the creek north through VI and back east across the highway culvert to complete the loop - next level: the remainder of the VH parking lot should eventually be developed as a state of the art wellness and rehabilitation center with hot/cold therapy pools and spas tied into the state funded geothermal plant. The evergreen lid would serve as the at grade ADA connection to integrate the hospital’s new wellness center. We’ll be the Mayo Clinic of healthcare and recovery. 64 LOT 10 PROJECT 1 LOT 10 CONCEPT DESIGNS TOWN OF VAIL AGENDA • Schedule Town Review DRB • Review Lot 10 Diagrams • Community Feedback - What we Heard Design Options • Option 1 - Central Axis • Option 2 - Thickened Edge • Landscape Character 65 LOT 10 PROJECT 2 LOT 10 CONCEPT DESIGNS TOWN OF VAIL LOT 10 SCHEDULE CONCEPT DEVELOPMENT TIMELINE WE ARE HERE 3/18 Design Update for Town Council 11/24 Lot 10 Goals Presented to Town Council 3/25 Annual Vail Community Meeting 12/18 Engage Vail Site Goes Live 1/22 Lot 10 Public Open House 4/16 DRB Meeting #1 SEP 30 APR 1, 2026 EVERGREEN CONSTRUCTION BEGINS JUL/AUG 2026 CONSTRUCTION DOCUMENTS COMPLETE FINAL TOWN COUNCIL APPROVAL Additional DRB Meetings LONG TERM EVERGREEN + LOT 10 SCHEDULE DESIGN DEVELOPMENT (Feb. - Sept.) 2025 2026 MARNOV MAYJANAPRDEC JUNFEB CONSTRUCTION DOCUMENTATION (Aug 2025 - Aug 2026) 66 LOT 10 PROJECT 3 LOT 10 CONCEPT DESIGNS 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 coffee program in the future Evergreen Development. MIDDLE CREEK CORRIDOR DOBSON ARENA VAIL PUBLIC LIBRARY FUTURE EVERGREEN DEVELOPMENT “THE LID” OVER VAIL HEALTH PARKING VAIL HEALTH MAINTAIN MIDDLE CREEK CONNECTION CONNECT TO CIVIC DISTRICT CONNECTION TO EXISTING BIKE WAY CONNECTION TO EVERGREEN + CAFE CONNECTION THROUGH SITE CONNECTION TO MEADOW DRIVE 67 LOT 10 PROJECT 4 LOT 10 CONCEPT DESIGNS 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. 33,900 SQ. FT. OF TOTAL PUBLIC REALM 68 LOT 10 PROJECT 5 LOT 10 CONCEPT DESIGNS TOWN OF VAIL THE LID + EXPANDED PUBLIC REALM The design of Lot 10 will invite visitors into the expanded public realm offered by the Evergreen Development. Site users will have full access to the Landscape Lid, Evergreen Courtyard, and the restaurand within The Evergreen. The Landscape Lid is an elevated ground plane, providing structure for vehicles underneath. This strategy maximizes both green, usable public space, and parking for Vail Health. Drawing 20 16 Copyrigh t TEN XTEN 1" = 80'-0"L5.03 1Section 14 1" = 80'-0"L5.03 2Section 15 LOT 10 VIEWS TO MOUNTAIN HOSPITAL PARKING UNDER LID RESTAURANT INSIDE EVERGREEN GORE CREEK LANDSCAPE LID EVERGREEN COURTYARD PUBLIC REALM 69 LOT 10 PROJECT 6 LOT 10 CONCEPT DESIGNS TOWN OF VAIL 01. ESTABLISH A SIGNATURE CIVIC SPACE 02. AMPLIFY THE VAIL EXPERIENCE 03. CENTER ART AS A DESTINATION 70 LOT 10 PROJECT 7 LOT 10 CONCEPT DESIGNS TOWN OF VAIL DESIGN DRIVERS MOUNTAIN MOVEMENT A CIRCULATION STRATEGY THAT AIMS TO MAKE GRADE CHANGE INTO A SUBTLE SHIFTING EXPERIENCE. CAN WE ELIMINATE AS MANY HANDRAILS AS POSSIBLE TO MAKE A TRAIL LIKE EXPERIENCE? PLANES OF EXPERIENCE THE ELEVATIONAL CHANGES OF THE DIFFERENT SPACES ALLOWS FOR DISTINCT EXPERIENCES, HOWEVER, THOSE EXPERIENCES NEED TO BE TIED TOGETHER AS A SINGLE VISION/BRAND. HOW CAN THE DYNAMIC ELEVATION CHANGES BE USED TO SHAPE DISTINCT SPACES? CONNECTION WITH NATURE CONNECTING WITH NATURE IS ABOUT PROMOTING WELL-BEING FOR BOTH HUMANITY AND THE NATURAL ENVIRONMENT. HOW CAN ECOLOGY BE USED TO SHAPE A HEALTHIER FUTURE? 71 LOT 10 PROJECT 8 LOT 10 CONCEPT DESIGNS TOWN OF VAIL COMMUNITY ENGAGEMENT ENGAGE VAIL JAN. OPEN HOUSE 65 VISITORS 30 CONTRIBUTORS +BACKGROUND AND CONTEXT +THEMES AND PROGRAM +CONCEPT UPDATE 72 LOT 10 PROJECT 9 LOT 10 CONCEPT DESIGNS TOWN OF VAIL COMMUNITY FEEDBACK KEY POINTS • Safer bike and pedestrian crossings across W Meadow Dr. • Less urban feel, increase green areas significantly. • Passive play elements for children: how can play be integrated into the design of the site? • Design to facilitate small events and performances. • Consider shading and screening, park is south- facing and will be sunny. • Overall the park should feel more passive and create a wide variety of quiet, restful spaces among gardens. 73 LOT 10 PROJECT 10 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 1 : CENTRAL AXIS Design Features: • Central through-connection orients users to the park while drawing attention to Gore and Middle Creek. • Generous entries into the site invite users in and create a welcoming feel. • Large expanses of green spaces create a strong sense of place and provide opportunities for creative, integrated play features. Design Features: • Multiple connections into the site provides easy access and fluid circulation. • A thickened planted edge creatings inviting gardens visible from W Meadow Dr. • Edge along W Meadow Dr is widened and activated, providing seating, small gathering areas, and multiple points of entry. • Planting frames gathering areas and quiet seating zones within the site. OPTION 2 : THICKENED EDGE 74 LOT 10 PROJECT 11 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 1 : CENTRAL AXIS Accessible route into site W M e a d o w D r Ho s p i t a l P a r k i n g A c c e s s New bike path spur Welcoming entry The Ridge path Stepping stone play path integrated into gardens Terrace Steps Central sculpture Small seating spaces Safe crossing: pavement marking or change in pavement type The Evergreen Cafe Upper Park 75 LOT 10 PROJECT 12 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 1 : CENTRAL AXIS BIKE + SKI STORAGE RACKS CAFE PLAZA + FIXED SEATING SCULPTURE INVITES USERS IN SMALL GATHERING SPACES + SEATING WELCOMING ARRIVAL PLAZA + + + + +CENTRAL PLAZA CAN FACILITATE SMALL EVENTS + PERFORMANCES SMALL GATHERING AREAS + SEATING CONNECTION TO EVERGREEN RESTAURANT + FRONTAGE ROAD + + + BUILDING MATERIALS TO BE DETERMINED + UPPER PARK EXPANDS A CONTINUOUS EXPERIENCE 76 LOT 10 PROJECT 13 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 1 : CENTRAL AXIS MAINTAIN AND FRAME PAVING ART INSTALLATION INVITING VISUAL CONNECTION TO RIDGE PATH CLEAR VISUAL CONNECTION TO CAFE BUILDING MATERIALS TO BE DETERMINED WARM MATERIALS PALETTE FEELS CONTEXTUAL SIMPLE, MAINTAINABLE GROUNDCOVER PLANTINGS + PLANTINGS SCREEN HOSPITAL + + + + + 77 LOT 10 PROJECT 14 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 1 : CENTRAL AXIS SCULPTURE VISIBLE FROM ALL DIRECTIONS SEATING INVITES USERS INTO PARK FLOWLINE, BY RICHARD HANSEN, TO REMAIN CENTRAL AXIS PROVIDES GENEROUS ENTRY INTO PARK AND CAFE STEPPING STONE PLAY PATH BUILDING MATERIALS TO BE DETERMINED + + + ++ 78 LOT 10 PROJECT 15 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 1 : CENTRAL AXIS GENEROUS FIXED SEATING FOR CAFE PLANTING SCREENS HOSPITAL + + + ROBUST, MAINTAINABLE GROUNDCOVER PLANTINGS SCULPTURE IS AN ANCHOR IN THE SPACE + BUILDING MATERIALS TO BE DETERMINED + ACCESSIBLE ROUTE TO CAFE AND EVERGREEN 79 LOT 10 PROJECT 16 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 2 : THICKENED EDGE Accessible route into site W M e a d o w D r Ho s p i t a l P a r k i n g A c c e s s New bike path spur Sculpture nook within planting Seating along W Meadow Dr. Safe crossing: pavement marking or change in pavement type The Evergreen Cafe Upper Park Welcoming entry The Ridge path Terrace Steps 80 LOT 10 PROJECT 17 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 2 : THICKENED EDGE BUILDING MATERIALS TO BE DETERMINED BIKE + SKI STORAGE RACKS CAFE PLAZA AS SECONDARY SPACE PARK BENCH SEATING ALONG SIDEWALK MULTIPLE ENTRY POINTS INTO PARK GATHERING NOOKS ALONG W MEADOW DR LARGER, FLEXIBLE PLAZA SPACE FOR EVENTS + + + + + + + UPPER PARK EXPANDS A CONTINUOUS EXPERIENCE SCULPTURE INVITES USERS IN +CONNECTION TO EVERGREEN RESTAURANT + FRONTAGE ROAD + 81 LOT 10 PROJECT 18 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 2 : THICKENED EDGE BUILDING MATERIALS TO BE DETERMINED DIRECT CONNECTION TO UPPER PARK + PARK BENCH SEATING VIEWS TO CAFE EXPANDED SIDEWALK EDGE PROVIDES GATHERING AND SEATING + + + MAINTAIN AND FRAME PAVING ART INSTALLATION + 82 LOT 10 PROJECT 19 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 2 : THICKENED EDGE BUILDING MATERIALS TO BE DETERMINED VIEWS TO CAFE + SCULPTURE NOOK WITHIN PLANTING + NATURAL BOULDERS INVITE PLAY IN GREEN SPACE INTUITIVE CIRCULATION INTO PARK + + 83 LOT 10 PROJECT 20 LOT 10 CONCEPT DESIGNS TOWN OF VAIL OPTION 2 : THICKENED EDGE BUILDING MATERIALS TO BE DETERMINED GENEROUS FIXED SEATING WITHIN CAFE PLAZA + + ROBUST, MAINTAINABLE GROUNDCOVER PLANTINGS + ACCESSIBLE ROUTE TO CAFE AND EVERGREEN CAFE DRAWS VISITORS INTO PARK + 84 LOT 10 PROJECT 21 LOT 10 CONCEPT DESIGNS TOWN OF VAIL CONTEXTURAL MATERIALITY - CHARACTER PRECEDENTS 85 AGENDA ITEM NO. 5.2 Item Cover Page DATE:April 1, 2025 TIME:20 min. SUBMITTED BY:Cameron Millard, Environmental Sustainability ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion (2:25pm) SUBJECT:Geothermal Project Update (3:00pm) SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Kristen Bertuglia, Environmental Sustainability Director and Cameron Millard, Clean Energy Specialist VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Memo - Geothermal Update Attachment A. Vail Whiteboarding Session Attachment B. Vail Energy District Workshop Minutes Attachment C. McKinstry Thermal Energy Network Development Proposal Staff Presentation - Geothermal Update 86 To: Town Council From: Department of Environmental Sustainability Date: April 1st, 2025 Subject: Geothermal Energy Network Update I. Purpose This purpose of this memo is to update Vail Town Council on progress toward development of a geothermal energy network in the Lionshead area to decarbonize municipal operations, including snowmelt and buildings, in accordance with Council’s environmental goals. II. Background The Town of Vail has adopted greenhouse gas reduction goals including a 50% reduction in greenhouse gas emissions community-wide by 2030 and an 80% reduction by 2050. Snowmelt accounts for nearly 80% of municipal emissions from natural gas and buildings for nearly 20%. Recent improvements to the town’s snowmelt system have been helpful in reducing energy use, but additional clean energy technologies such as geothermal energy networks are needed to help the town meet its goals. Dr . Bryan Hannegan of Holy Cross Energy has described geothermal as a key technology for decarbonizing large thermal loads in a manner that provides efficiency, reliability, and flexibility to the electric grid. In the summer of 2024, the Town of Vail was awarded $250,000 from the Colorado Energy Office to pursue design of a geothermal heating district to incorporate key facilities and provide a clean energy alternative for snowmelting, the town’s largest consumer of fossil gas. The Vail Town Council has provided an additional budget of $150,000 to complete the project and the grant award and these matching dollars have been budgeted. III. Project Update The principal consultant, The Grey Edge Group, has been developing a civil layout and schematic design for the project, and ha s been working with local civil engineering firm Martin and Martin towards this goal. Their work is in progress and includes the following deliverables: 87 Town of Vail Page 2 • Engineering and design such as thermal load characteristics, geotechnical investigation, building and snowmelt plant integration, and initial loop design. • Analysis of thermal sources such as waste heat from chillers, wastewater treatment plant, snowmaking, ice rinks, solar thermal/PV, and especially geothermal. • Civil mapping with layout of loop piping • Schematic design level documents for project costing and constructability and basis for design and construction document. The following items are still to be completed in accordance with the previously mentioned Geothermal Energy Grant program deliverables: • Costing, legal, financial and technical analysis to present options for design, build, ownership, operations, and maintenance. • Identification of Federal, State and utility incentives and partnerships/financing opportunities • Potential Geothermal District partnership agreements Phased construction planning process (drilling, piping, building and snowmelt plant retrofits, etc.) To this end, design/build energy services provider, McKinstry, has been conducting a townwide investment grade energy audit to identify efficiency and renewable energy improvements across the town, as well as building system level integration with geothermal energy systems. In late January, McKinstry facilitated a workshop with likely stakeholders such as ERWSD, Vail Resorts, and Holy Cross Energy. With deep geothermal district experience, McKinstry is ideally positioned to provide development services to achieve the above deliverables to complete the plann ing portion of the project. IV. Staff Recommendation Staff recommends pursuing a development contract with McKinstry to complete the development and planning portion of the project. This contract is on the consent agenda for the April 1st evening meeting. V. Attachments A. Presentation: Geothermal Energy Update B. Vail Whiteboarding Session C. Vail Energy District Workshop Meeting Notes D. Contract Proposal – Vail_McKinstry Thermal Energy Network Dev Proposal 88 89 •Carbon Goals •Resilience Goals •Financial and Operational Objectives •Neighborhood, Civic Area and Community Goals •Regulatory, Guest Experience, Workforce Housing •Baseline of facilities and barriers. •Conceptual and neighborhood visioning exercises. •Engineering, operational, financial, and contractual considerations. •Defining each of these •Ability to connect multiple systems throughout the community •Discuss compatibility and coordination •Development process overview for energy districts. •Delivery and phasing strategies. •Potential next steps •Develop clear alignment on goals across agencies, what is needed for each agency to move forward/commit to vision 90 Name Company Title Bryan Hanson McKinstry Vice President – Energy & Technical Services Ashley Brasovan McKinstry Senior Account Manager Stephan Rank McKinstry Project Director Reid Prison McKinstry EcoDistrict-Project Director Carrie Thomas McKinstry EcoDistrict-Director Strategy Mike Kowalick EDO Utility Director Dee Martir EDO Director John Gibson Avista Utility Consultant Name Company Title Cameron Millard Town of Vail Clean Energy Specialist Kristen Bertuglia Town of Vail Environmental Sustainability Director Tom Kassmel Town of Vail Town Engineer Greg Hall Town of Vail Public Works Director John King Town of Vail Facilities Director Beth Markham Town of Vail Environmental Sustainability Manager Russell Forrest Town of Vail Town Manager Stephanie Johnson Town of Vail Executive Coordinator Matt Garlick GreyEdge Group CEO Paul Bony GreyEdge Group Principal Mark Smith GreyEdge Group VP of Design Jeffrey Schneider Eagle River Water & Sanitation District Engineering Manager Madeleine Harris Eagle River Water & Sanitation District Project Manager Siri Roman Eagle River Water & Sanitation District General Manager Bryan Hannegan Holy Cross Energy President & CEO Jenna Weatherred Holy Cross Energy VP, Member & Community Relations Ginette Puidokas Holy Cross Energy Community Rep / Key Accounts Specialist Mike Steiner Holy Cross Energy Key Accounts Specialist Fritz Bratschie Vail Resorts Director of Sustainability Jacob Lehew Vail Resorts Sustainability Manager James Thurman Vail Resorts Senior Engineering Manager Jeff Babb Vail Resorts Senior Director of Resort Operations John Ryan Lockman Vail Resorts Director of Sustainability 91 •Vail climate goals (50% by 2030, 80% by 2050) •Snowmelting 80% of municipal natural gas usage •Snowmelt creates 6,500 metric tons of C02 annually •440 KW electric boiler in 3rd year of operation •Gas system equal to 7 megawatts •Electric resistance can work, but at what cost (3.31x) Vail’s Decarbonization Journey Vail Electric Snowmelt Boiler Heat Map 92 The Vail Decarbonization Challenge • Largest snowmelt in North America? •System performance a must! •Peak load is late afternoon or snow events, so during peak or random •Snowmelting is highly energy intensive •Electric resistance is expensive •Buildings are also part of the puzzle. 93 Energy and Carbon Reduction Potential in Vail Snowmelt 79% Fire Pits 1% Buildings 20% Municipal Natural Gas Use in Vail 94 Thermal Energy Network Study- Phase 1 ❖Initial Feasibility Study ❖50/90 decarbonization rule ❖Hydrogeology ❖Test Borehole ❖Thermal sources 95 Potential Thermal Management Assets in Vail 96 Geothermal Energy Grant Program: Phase II Award Colorado Energy Office – 7 million grant round Awarded TOV $250,000 for development of the Civic Area Geothermal Heating District, to include: ❖Wastewater treatment plant ❖Hotels like the Arrabelle ❖Library ❖Ice arena ❖Lionshead structure snowmelt plant ❖Geothermal Wells 97 98 The first wave of consequences from climate change are here now. Without immediate action, these impacts will escalate to a point of no return by 2030. Rising costs are culminating in an affordability crisis that is unnecessary, unacceptable and limits the investment needed to balance the natural and built environment. Systemic inequity and racism are embedded in nearly every aspect of our society, with those who have the least are poised to suffer the most from the crises we face. Systemic Change 99 1% 100 ✓All systems organize individual pieces into some sort of interrelated whole. ✓Systemic change occurs when change reaches all or most parts of a system, thus affecting the general behavior of the entire system. ✓However, systemic change is often difficult to envision, let alone encourage, because people generally find it easier to focus on the parts than on the systems that connect those pieces. ✓Because of the likelihood that people will have different definitions of what defines a particular system, encouraging systemic change depends on creating one or more maps of the system using insider and outsider perspectives. ✓As a result of this step, people involved in the change effort may gain new lenses for seeing how the parts are related within the whole and where to apply particular change strategies. What does systemic change mean to you? (ascnhighered.org)101 102 A digital backbone pulls the local utility beyond the meter, allowing buildings to operate in harmony with grid needs. Sensors and automated controls optimize classrooms for peak student performance. Lease agreements and engagement programs shift occupant behaviors to meet zero-energy targets. Rooftop solar offsets building energy consumption. The all-electric central energy plant burns no fossil fuels on-site, resulting in zero carbon emissions. Thermal energy is shared between buildings and the central energy plant to maximize efficiency. Thermal and electric battery storage help meet utility needs, turning buildings into living batteries for the grid.Catalyst Building Morris Center 103 104 •Continue to set GHG records •Billion Dollar Weather Events •1% of Infrastructure is Decarbonized •50% Reduction in GHG Emissions by 2030 •Decarbonize snowmelt system •Consumer Pressure •Community Pressure •Health Concerns •Colorado Building Performance Standards •Energy Performance for Buildings Act •Carbon Tax •Polis Administration goal of 100% RE by 2040 •CO committed to 100% net-zero GHG by 2050 •Legislative and Regulatory •Resilience – Cyber and Climate Change •Renewable/Clean Power •IRA •Grants •Financial Mechanisms •Revenue Opportunities •Lower First Cost 105 106 Carbon + Sustainability Resilience Neighborhood Community/ Civic Area (workforce housing) Financial + Operations Regulatory Considerations Other (guest experience) Town of Vail Vail Resort Utilities Industry Community & Guest Experience Vision and Legacy Whiteboarding 107 108 • • • • • • • 109 110 111 112 113 114 115 116 117 118 Dobson Ice Arena Snowmelt System Vail Public Library Eagle River Water & Sanitation District Arrabelle Hotel 119 120 121 122 Utility Owner/ Operator 123 124 125 126 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 127 Funding/Financing •Xcel-Energy Efficiency Financing (NEIF) •CEO-Energy Performance Contracting (EPC) •USDOT- Energy Efficiency and Renewable Energy Improvements at Public School Facilities Program •IRA-Energy Infrastructure Reinvestment Program (1706) •USDOE-Buildings Upgrade Prize •EPA-Green Bank •P3-Concessionaires Agreement •3rd Party Funded-Energy as a Service •3rd Party Funded-Energy Performance Contract •3rd Party-Private Equity / Debt •3rd Party-Tax Equity •3rd Party-Tax Exempt Lease Purchases •3rd Party-Certificates of Obligation (or Participation, statute dependent) •3rd Party-Contingent Financing •3rd Party-Power Purchase Agreement Structure– Thermal Services, District Energy w/3rd party off takers, etc. •3rd Party-Land-Lease/Sale-Leaseback/swaps or sales – I haven’t talked to Generate about it but we could get creative possibly •3rd Party-Traditional Real Estate Finance (real property) Grants •CEO-Colorado Public Building Electrification •CEO-Microgrids for Community Resilience Program •CEO-Colorado Electric Grid Resilience Grants •USDOE- Grid Resiliency/Tribal Formula Grant, Bipartisan Infrastructure Law •USDOE-Energy Efficiency and Conservative Block Grant Program •USDOE-Energy Future Grants •USDOE-Green Revolving Fund •UDOE-Heat Pump Defense Production Act Program •FEMA- Catastrophic Preparedness Grant (climate resilience) •DOL-Community Project Funding (Labor training) •HHS –Community Economic Development Planning Grants •BHA-Climate Smart and Disaster Ready Grant •USDA-Renewable Energy Systems and Energy Efficiency Improvement Program •EPA-Methane Emissions Reduction Program •EPA-Environmental & Climate Justice Block Grants Tax Credits/Rebates •CEO-High Efficiency Electric Heating & Appliances Program •CEO-Geothermal Energy Grant Fund Tax Credits •CEO-Heat Pump & Thermal Energy Tax Credits •Xcel Energy-HVAC-R Upgrade Program •Xcel Energy-Clean Water Pumps Rebates •Xcel Energy-Commercial Refrigeration Rebates •Xcel Energy-Compressed Air Rebates •Xcel Energy-Cooling Upgrades Rebates •Xcel Energy-Energy Management System Rebates •Xcel Energy-Fan Energy Index Rebates •Xcel Energy-Heating Rebates •Xcel Energy-Motor, Drive, & Pumps Rebate •Xcel Energy-Strategic Energy Management Rebates •Xcel Energy-Heat Pump Rebates •Xcel Energy-Solar Rewards •Xcel Energy-Solar Rewards Community •Xcel Energy-Renewable Battery Connect (Battery Storage) •Xcel Energy-LED Lighting Rebates •USDOE-Clean Electricity Production Tax Credit •USDOE-Solar Investment Tax Credit •USDOE-Credit for Carbon Sequestration (45Q) •IRA - Investment Tax Credit (48) •USDOE-Commercial Buildings Energy Efficiency Tax Deduction (179D) Student Grants •Colorado Scientific Society-Student Research Grants •USDOE-Decarbonization and Net-Zero GHG Emissions R&D at Universities •USDOE-University Training and Research for Fossil Energy and Carbon Management Grant •USDOE-Student Scholarship, Internships and Fellowships •USDOE-Minority Educational Institution Student Partnership Program •EERE- American Association for Advancement of Science Fellowships •EERE- Clean Energy Innovator Fellowship •NSF- Research & Internship opportunities in Engineering, Renewable Energy, and Carbon Emissions Reductions •USDOE-Buildings UP Prize •NREL-Solar Decathlon – Zero Energy •USDOE-American-Made Solar Prize •USDOE-Solar Data Bounty Prize •NASA-CO Space Grant Consortium 128 Entity Developer Owner Financier Operator Governance Town of Vail Vail Resorts Holy Cross Developer Local Consortium Private Utility Joint Venture 129 130 Miro Board 131 132 133 Meeting Name: Town of Vail Energy District Workshop Meeting Date: Tue 1/28/2025 Name Company Title Present Cameron Millard Town of Vail Clean Energy Specialist X Kristen Bertuglia Town of Vail Environmental Sustainability Director X Tom Kassmel Town of Vail Town Engineer X Greg Hall Town of Vail Public Works Director X John King Town of Vail Facilities Director Beth Markham Town of Vail Environmental Sustainability Manager X Russell Forrest Town of Vail Town Manager Stephanie Johnson Town of Vail Executive Coordinator Matt Garlick GreyEdge Group CEO X Paul Bony GreyEdge Group Principal X Mark Smith GreyEdge Group VP of Design X Jeffrey Schneider Eagle River Water & Sanitation District Engineering Manager X Madeleine Harris Eagle River Water & Sanitation District Project Manager X Siri Roman Eagle River Water & Sanitation District General Manager Bryan Hannegan Holy Cross Energy President & CEO X Jenna Weatherred Holy Cross Energy VP, Member & Community Relations X Ginette Puidokas Holy Cross Energy Community Rep/Key Accounts Specialist X Mike Steiner Holy Cross Energy Key Accounts Specialist Fritz Bratschie Vail Resorts Director of Sustainability X Jacob Lehew Vail Resorts Sustainability Manager X James Thurman Vail Resorts Senior Engineering Manager Jeff Babb Vail Resorts Senior Director of Resort Operations X John Ryan Lockman Vail Resorts Director of Sustainability X Bryan Hanson McKinstry VP Energy & Technical Services X Ashley Brasovan McKinstry Senior Account Manager X Stephan Rank McKinstry Project Director X Reid Prison McKinstry EcoDistrict Project Director X Carrie Thomas McKinstry EcoDistrict Director Strategy X Mike Kowalick EDO Utility Director X Dee Martir EDO Director X John Gibson Avista Utility Consultant X Individuals were able to express their objectives and interests for today’s session. Statements are included below with a word cloud highlighting reoccurring themes; the largest being understand. • Utility load/perspective • Support team, relationship to CAP, partnership with TOV • Coordinate ESPC w/ energy district • Synergies with energy district • How all the pieces come together to make this a reality, make it happen • Understand where the project is in the lifecycle • Understand the current and future level of engineering and analysis • Synergies with 0 by 50 goals, collaboration opportunities • Collaboration between entities 134 Meeting Name: Town of Vail Energy District Workshop Meeting Date: Tue 1/28/2025 • Gather info, collaborate, support sustainability • Understand if Vail could be a pilot as a VPP • Understand scope, see where Holy Cross fits in • Best support, role, ensure Dobson is well used • Increased commitment from interested entities • Share utility partnership opportunities • Stakeholder commitment • Feasibility and impacts of the project, challenges • Learn, listen, compel Steamboat to act • Understand who is interested in what roles in the agreement This whiteboarding exercise allows multiple stakeholders to contribute their vision for different prompts while displaying them in a cohesive table. Statements are included below with a word cloud highlighting reoccurring themes; the largest being cost, carbon, and community. 135 Meeting Name: Town of Vail Energy District Workshop Meeting Date: Tue 1/28/2025 • Path to net zero for future development • Net zero and net positive in workforce housing projects and civic area • Neighborhood cheap renewable energy source for affordable housing • Sometimes included: heat power incentivize being efficient but wasteful as it doesn't cost me directly • Create a compelling ROI • It needs to work and not impact or damage existing infrastructure • Cost effective, can't be green at all cost • Cost savings or at least cost neutral • Needs to work when needed, low maintenance effort and cost to maintain as well as replace in the future • Buffer from cost shocks for energy • 10 year ROI • ROI from electrification • Achieve carbon reduction goals 50% 2030, 80% 2050 • Decarbonize snow melt system in cost effective manner • Reduce carbon emissions per strategic goal • Leadership for mountain towns everywhere! • Achieve carbon reduction goals • Decarbonize our community • Demonstrate for the world it can be done • Needs to be very dependable • Resilient and comfortable buildings • Reliable as the status quo • Keep operations simple • Ability to utilize electric, gas, geothermal as needed if one or two are interrupted by disaster • Maintain or improve system resilience • Redundant, resilient, energy source when we have natural disaster that impacts grid • Robust, reliable battery storage system • Reduce GHG and meet 2030 and 2050 goals • Guests appreciate and realize they are visiting a sustainable destination • Snowmelt performance to keep villages walkable and open for business • Leader in alternative energy recognized by guests and residents • Community: Sentiment, partnership, costs • Community and public relations, Partnering with our community • Mechanism to fund other CAP goals • Long term operating cost reduction • ROI • With NE cost increasing over time we are interested in leveraging and using local resources to keep costs down • Construction impacts during operations • Net zero goals • Achieve a zero net operating footprint • Scope 1 emissions reduction • Scope 1 (ng) emissions are substantial at the Arabelle, we are interested in projects that support decreasing this • Resilience/backup in case of emergency • ESG reporting, Emissions reduction, co-benefit • Limiting impact on the operations while guests are here • Brand loyalty, community engagement • Investor perceptions, industry leadership • Guest experience for future development, potential for thermal heat pumps to support better heating and cooling • Affordable rates • How does utility support retrofits for existing buildings? • Member experience: holding Vail and other partners reach their goals • Profitable construction and operations risk is acceptable • Couple supply close to load • Impact to rate payers • Controllable assets, peak shaving • Feasible timeline to work through company capital structure • Absorb excess renewables from Holy Cross • As HCE becomes cleaner electrification becomes more important • Carbon free demand resources • Behave as a microgrid to reduce impact of the outage • Avoid or remediate HC peak hours • Backup resource • Rate design • TENs are like the wild west, very little regs currently • What will the Colorado PUC do w/regards to regulating these systems • 100% regulatory compliant • Flexible load • Community impact • Reduce future O&M costs • Installation and operating costs of thermal assets across multiple stakeholder properties • Improve operations • Offset load increase with demand • Energy optimization of the commercial buildings • Technically feasible • Projects need to help move McK goals • Reduce GHG • Create a legacy of high efficiency buildings • Carbon, place a value on decarbonization beyond utility costs • Adopt and apply a social cost of carbon • Must be reliable so that warranty and performance issues are minimized, post install risk management • Develop a UTEN model • AHJ considerations • Clean guidance around permitting so the construction can be completed on schedule and budget • See it built and succeed • Minimize negative impact • Developer incentives to join system • Leader and proof of concept for the community • Maintain guest expectations, clean roads, ice and snow free, allows for safe movement on stairs and walks especially • No snow melt abrasives applied 136 Meeting Name: Town of Vail Energy District Workshop Meeting Date: Tue 1/28/2025 As a conclusion to the workshop, the group discussed Opportunities and Barriers with respect to the foundational pillars of a project scorecard. Due to limited time, the group only covered three of the five categories. The five categories include Technical, Regulatory, Constructable, Operational, and Financial. A word cloud is included below highlighting reoccurring themes; the largest being utility, infrastructure, and integration. Density Allowed by statute Impacts to other infrastructure, timing considerations Training for crews for a new utility/system ROI - does the project meet criteria for all stakeholders Potential for utility partnerships ESG goals Fiber network was bored, could energy district piping use the same methods? Monitoring and tracking performance Impact investors could be part of a capital stack Growth potential Building codes – carrot/stick with incentives The right contractors Utility integration Feasibility/timeline to bring funding + get approval Sources/sinks Part of entitlement process Synergies between utility installs i.e. piggyback on other projects or add utilities to install Integration with connected members Rate structure and connection requirements Higher-end use buildings Construction impacting the guest experience Decision tree, pros/cons for owner responsibilities Proforma, how do you value assets Scale: main players vs prep for future expansion - how do you balance the two? failure analysis + break-fix protocol Taxation district, TIF, incentives Infrastructure sizing - discussion regarding design criteria Repurposing of the buildings/space > space utilization 137 Meeting Name: Town of Vail Energy District Workshop Meeting Date: Tue 1/28/2025 1. Compilation of workshop notes, exercises, and materials 2. Contract for development and economic feasibility a. Provide outline of preliminary development tasks and associated pricing b. Collaborate on proposal with TOV to move forward 3. Provide an initiative one-pager for all stakeholders to communicate within the community 4. Gather any additional feedback or thoughts across stakeholder groups 138 together, building a thriving planet Town of Vail Thermal Energy Network Development Vail, CO March 5, 2025 139 1 March 5, 2025 Cameron Millard | Clean Energy Specialist, Town of Vail 75 South Frontage Road Vail, CO 81657 Dear Mr. Millard, McKinstry Essention, LLC (McKinstry) is pleased to present our proposal to the Town of Vail (the Town) for the Vail Civic Area Thermal Energy Network economic feasibility analysis to further support the Town’s on-going efforts for the Geothermal Phase II design project. Based on McKinstry’s experience working through complicated and unique energy district projects throughout the country, we know that we can help you navigate the journey to further the community’s vision to be a “recognized global leader in sustainability” and achieve its emission reduction goal of a 50% decrease by 2030. For the past few years, the Town of Vail has worked with The Grey Edge Group to explore the technical feasibility of a thermal energy network leveraging geothermal energy resources to help decarbonize the Town’s snowmelt system along with other nearby facilities. One remaining piece of the puzzle is exploring the business side of the energy district – the ownership, governance and total lifecycle project financials. McKinstry has focused on supporting similar energy district projects across the nation to provide comprehensive models of this critical project component. McKinstry understands the goals of the various stakeholders involved in this project after conducting a workshop in January 2025 and can support the necessary organization to drive systemic change in order to make this project a reality. The key components to deliver on your vision include: • Actionable systemic change road map that combines technical, financial, contractual and operational approaches • Decarbonized infrastructure that delivers on Vail’s emission reduction goals by 2030 and 2050 • Optionality throughout the process to best define the model that provides the highest value to all stakeholders involved • Alignment with the Geothermal Phase II design project McKinstry can deliver a comprehensive approach that will unify the needs of the Town of Vail, Vail Resorts, Eagle River Water and Sanitation District, Holy Cross Energy and the surrounding community. Rooted in systemic change, this path is one that will provide a benchmark achievement for other cities, counties, and resorts alike. Together, our organizations will create the quilt of solutions to unite the goals and missions, infrastructure design and development, and creative financial, technical and delivery tools necessary to deliver on this vision. From this phase of work, the Town of Vail and this stakeholder group will have a framework to proceed with the structure and governance for and the potential financial implications of a thermal energy network development. Thank you for the opportunity to partner on this exciting project and we are happy to answer any questions about the content within this proposal. Sincerely, Ashley Brasovan │ Senior Account Executive 303.968.4138 │ ashleyb@mckinstry.com 140 2 The Town of Vail, Vail Resorts, Holy Cross Energy, and Eagle River Water and Sanitation District have explored many options over the years to decarbonize the built environment, the grid and the local snowmelt systems across the Vail community. The Town has committed to emission reduction goals of 50% by 2030 and 80% by 2050 while Vail resorts has made a commitment to zero emissions by 2030. Both have the vision to be a “recognized global leader in sustainability.” Currently, the snowmelt system in Vail is the largest producer of greenhouse gas emissions for the Town’s operations encompassing about 80% of the Town’s total natural gas use. While many of the stakeholders within this project group have explored alternative decarbonization options, a thermal energy network (TEN) paired with geothermal and other heat sources has risen to the top as one of the primary candidates for being able to accomplish the community’s emission reduction goals. In 2023, the Town hired Grey Edge Group to begin exploring the technical components of what a thermal energy network could look like including analyzing the feasibility of ground source and the profile of the buildings clustered together in Vail. Over the past few years, the analysis has garnered the attention of the Governor, brought in grants to support the project and has attracted local attention. On January 28, 2025, McKinstry partnered with Town of Vail to host a workshop of all stakeholders to discuss governance, ownership models and what bringing in a developer could do to further the project and transform it from a design concept into reality. This proposal highlights those next steps and outlines what is needed outside of the design process to help to move this unique and exciting project forward. McKinstry proposes to develop the Town of Vail TEN concept utilizing the currently ongoing work as detailed below to a more actionable point. Our focus will be on what the TEN concept means to the Town of Vail, local utilities, commercial properties in the area and potential partners that would be involved in the designing, building, operating and owning the TEN system. Parallel efforts for this development are detailed below and will be critical to track during the next phase of the TEN. McKinstry Energy Savings Performance Contract (ESPC). In 2024, McKinstry was competitively selected to perform an Investment Grade Audit at the Town of Vail facilities to identify key measures to implement through an Energy Savings Performance Contract (ESPC). This process will help to progress the Town’s climate action plan, electrify key facilities, potentially help to create the first node within an energy district at the Vail library, and address deferred maintenance and end-of-life equipment throughout the municipal facilities. The ESPC is expected to conclude and move into the implement phase in late 2025 and will be funded through energy savings, grants, investment tax credits, and rebates. Dobson Ice Arena Renovation. As a separate effort, the Town of Vail is working on a significant remodel of the Dobson Ice Arena. The key interaction between this and the ESPC is that the waste heat generated by the Arena’s ice plant will be utilized in a new HVAC system at the Town’s Library which is physically adjacent to the Arena. Both facilities are expected to be nodes within a future thermal energy network in the Vail Civic area. The Grey Edge Group (TGEG) geothermal Phase 2 design study. The Town of Vail has contracted with TGEG to perform initial engineering efforts around the envisioned thermal energy network (TEN). TGEG study is currently in Phase 2, which will bring this initial engineering further into design. McKinstry is working closely with TGEG to coordinate data sharing as appropriate and has worked with TGEG in the past on other projects. The engineering and design efforts to be completed by TGEG in their Phase 2 study will be used as the basis of the cost estimation. In order to develop a successful concept that will move forward to implementation, McKinstry believes the phase 2 design effort will need to be heavily coordinated with the proposed business, governance, and ownership modeling. 141 3 McKinstry’s Infrastructure Development Group has a proven approach to delivering decarbonized infrastructure, combining technical, financial, contractual, and operational strategies into an actionable business plan. By managing the planning, development, stakeholder engagement, and governance of energy systems, McKinstry ensures a comprehensive and executable strategy for projects to be able to move into successful implementation and long-term operations. The Town of Vail, in collaboration with an investment of time and resources from McKinstry, has successfully completed Phase One, which involved a community visioning exercise that engaged key stakeholders and laid the foundation for a successful energy district strategy. This proposal advances the team into Phase Two: Planning. This phase focuses on establishing the charter and assessing the technical, financial, and contractual feasibility of the project to develop a validated program plan, ensuring a clear and verifiable path toward the development phase. The graphic below displays the four key phases of an energy district development. 142 4 *Based on a NTP of April 1 for this scope of work. Structure And Criteria • Set bounds and constraints *Deliverable: two-page memo that defines the project as we know it today o Identification of limits of analysis, included stakeholders, geographic boundaries, and other considerations to create a boundary for initial investigation and future development • Establish preliminary stakeholder criteria *Deliverable: stakeholder criteria matrix o For all included stakeholders, identify the “why”, value proposition(s), what we are solving for, etc. o Identify qualitative and early quantitative metrics and criteria that are required or would make the project a success • Identification and preliminary evaluation of design-build-own-operate-maintain (DBOOM) structures *Deliverable: stakeholder and development roles matrix documenting potential arrangements, brief discussion regarding pros, cons, risks, benefits, etc. associated with each arrangement, and selection/documentation of DBOOM structure for analysis and proforma creation o Create a matrix map of the most likely stakeholder roles and select a model for further analysis based on stakeholder criteria • Preliminary governance framework *Deliverable: example governance scorecard to document the current vision of the development and to be used as a living document throughout the development process. 143 5 o For the selected DBOOM arrangement, identify a potential framework for governance of the initiative, development, and eventual implementation, operation and maintenance, and evolution of the system o Completion of example governance scorecard to guide development. This will be refined throughout the project Technical Concept • Concept validation and alternatives analysis *Deliverable: two-page memo discussing technical alternatives and qualitative assessment of each o Given preliminary technical knowledge of existing systems and TGEG ongoing study, confirm concept validity and perform a brief, high-level alternatives analysis to justify continued investment in the current thesis and compare to a “business as usual scenario” defined early in the project process. o Electric resistance boiler comparison - document the pros/cons of an electric boiler solution to use as a comparison in the optionality assessment. Anticipated options are “business as usual” (BAU), electric resistance boiler, and geothermal integrated ambient temperature loop (ATL). • Building/system scorecard *Deliverable: cataloguing of all proposed offtakers/buildings, high-level system descriptions of existing HVAC, score interconnection ability by green/yellow/red, qualitative assessment of other factors o Document high-level existing systems for each building/system/off-taker, identify barriers to connection to the potential ATL, and provide a score for each building/system/off-taker. • System one-line diagram o Work with TGEG to document a preliminary system one-line diagram to communicate approximate location of all buildings/nodes/assets, geofields, piping runs, or other major system components. Preliminary Proforma – create a time-value analysis of cost, energy, and emissions for baseline (BAU), electric boiler, and geothermal ATL options; include cashflow analysis from the perspectives of assumed system owner, operator, and maintainer role and offtakers. Offtakers are limited to Town of Vail, Vail Resorts (local portfolio-level), and Arrabelle Hotel. *Deliverable: completed proforma to include documented assumptions, itemized inputs, and outputs as financial implications for identified stakeholders. • Capital Expense (CAPEX) conceptual cost estimating (included for clarity of proposal, costs included in existing IGA contract) o Based on TGEG Ph 2 design, perform conceptual cost estimating by using industry standard rates and/or historical construction data to create standardized, unitized pricing metrics; examples could be $/linear foot of distribution piping, $/linear foot or $/borehole for geothermal drilling, $/square foot for mechanical system conversion for in-building HVAC systems, etc. • Utility data-level energy analysis o Leverage existing 12-month utility data to identify before and after utility consumption using yearly weather correlation and estimated system efficiencies to establish baseline and proposed cases for buildings, systems, and offtakers. • Energy cost analysis o Use utility data-level energy analysis, current utility rates, and an assumed utility escalation rate to document current and future costs of systems. • Operations & Maintenance (O&M) + Repair/Replace (R/R) mapping o O&M Baseline – utilize existing maintenance records, annual budget, etc. to establish annual reactive and preventative maintenance costs o R/R Baseline - estimate current deferred maintenance liability and project estimated costs and intervals. o O&M Proposed – given system selection, utilize industry standard metrics to estimate annual preventative maintenance spend and break/fix outlay 144 6 o R/R Proposed – given system selection, identify equipment projected useful lifecycle and provide estimated replacement value by using assumed escalation rate for given year replacement. Presentation of findings + recommended next steps *Deliverable: compiled report of above deliverables, to include executive summary and recommended next steps • Deliver report, review and incorporate (1) round of feedback with TOV. Conduct a summary presentation to key stakeholder representatives • Identification and description of Phase 2 development efforts based on findings and stakeholder input; and proposal for further development, as requested Based on the workstreams outlined above, McKinstry proposes the following Lump Sum fee amount. $144,820 *Pricing valid for 60 days. The expected project duration from the notice to proceed date is approximately 6 months if all requested information is received in a timely manner. This schedule is based off of TGEG delivering it’s next phase of design in June 2025. Milestone Typical Duration Estimated Timing Proposal Delivery Today Notice to Proceed 2 weeks Weeks 1 - 2 Governance & Criteria Roadmap 4 weeks Weeks 3 - 6 Preliminary Proforma Development 6 weeks Weeks 7 - 12 TGEG Geothermal Phase 2 Design Complete June 2025 Refinement of Proforma 3 weeks Weeks 13 – 15 Delivery of Findings 2 weeks Weeks 16 – 17 Presentation to Stakeholder Representatives 2 weeks Weeks 18 – 19 Proposal for Phase 2 6 weeks Weeks 20 - 25 1. Client to provide information in a timely manner regarding its requirements for, and the limitations of, each Project, including accurate and reasonably complete. Within seven (7) days after receipt of a written request from McKinstry, the Client shall furnish the requested information necessary and relevant for McKinstry to evaluate, give notice of, or enforce lien or stop notice rights. 2. McKinstry shall be entitled to rely upon the accuracy and completeness of the information, surveys and reports supplied by Client or on Client’s behalf. Unless otherwise agreed in the Project scope, McKinstry shall not be responsible for design or construction documents for any improvements outside the demising line of Client’s premises for this Project. 3. Client shall coordinate the services of its own consultants with those services provided by McKinstry. Upon McKinstry’s request, the Client shall furnish copies of the scope of consulting services in the contracts between the 145 7 Client and the Client’s consultants so that McKinstry can confirm proper scope coordination. Client shall furnish the services of consultants as designated for each Project or authorize McKinstry to furnish them as an Additional Service, when McKinstry requests such services and demonstrates that they are reasonably required for the scope of the Project. Client shall require that its consultants maintain professional liability insurance with limits and coverage comparable to that required by McKinstry. 4. Client shall furnish all legal, insurance and accounting services, including auditing services, that may be reasonably necessary at any time to meet the Client’s needs and interests under each Project. 5. Client shall provide prompt written notice to McKinstry if the Client becomes aware of any fault or defect in the services or work related to a Project, including errors, omissions or inconsistencies in McKinstry’s Instruments of Service. 6. McKinstry shall not be liable for building components, goods or services purchased or contracted for separately by Client. • Any level of design or permitting drawings • ASHRAE 62.1 calculations or verification • Detailed code analysis of egress, fire protection, or seismic considerations • Structural assessments • Detailed site utility evaluations • Full-building energy modeling • In-depth u-value calculations • Comfort analysis or modeling • Detailed lifecycle cost analysis • Facility Condition Assessment (FCA) is not included in this scope. • Building energy use benchmarking • Guaranteed Maximum Pricing (GMAX, GMP) • Schedule slip due to delay of TGEG Ph 2 study outputs Signature to this proposal serves as a contractual agreement with the terms and conditions listed below. We are appreciative of the opportunity to collaborate on this effort. McKinstry Essention, LLC Signature & Date Printed Name & Title Town of Vail Signature & Date Printed Name & Title 146 8 Performance of Work McKinstry shall perform the scope of work (“Work”) specified herein. McKinstry shall furnish all services necessary to perform the Work and perform the Work to completion diligently, expeditiously and with adequate forces. Customer shall use its best efforts to provide all information, materials, documents, and assistance that is reasonably required for McKinstry to perform any and all aspects of the Work. Payments Customer shall pay McKinstry the compensation specified herein (“Price”) for the value of Work that McKinstry has completed, as the Work is completed on a percent complete basis. Customer shall pay McKinstry within fifteen (15) days of receiving an invoice. McKinstry will be entitled to interest at the rate of 1.5 percent per month on all sums overdue and unpaid from the date due. Termination Either Party may terminate this agreement upon fifteen (15) days written notice to the other Party. In such case, the rights and obligations of each Party that arose prior to the termination date shall survive such termination. Disputes In case of dispute between the Parties, the Parties will attempt to negotiate a resolution. If a dispute remains unresolved more than thirty (30) calendar days after the commencement of negotiation, and the Parties have not agreed to extend such date, then the Parties shall pursue mediation. If any dispute remains unresolved more than sixty (60) calendar days after the commencement of mediation, then either Party may pursue arbitration. No litigation will be commenced by either Party unless all of the foregoing steps have been pursued to completion. Choice of Law, Venue The validity, interpretation, and performance of this agreement shall be governed by the laws of the state in which the Work is performed. The venue for resolving any dispute shall be the county in which the Work is performed. Force Majeure Neither McKinstry nor Customer shall be considered in breach of this agreement to the extent that the Party’s performance is prevented by an event or events that are beyond the control of such party, including but not limited to acts of God, fire, earthquake, flood, storm, war, rebellion, revolution, insurrection, riot, strike, nuclear contamination, and/or acts or threats of terrorism. No Waiver No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver. Intellectual Property Intellectual property provided by McKinstry to Customer as part of the Work are instruments of service owned by McKinstry and are not “work made for hire” as such term is defined under U.S. copyright law. When the Work is performed to completion, McKinstry grants to Customer a limited license to use the Intellectual Property to operate, maintain, renovate, and manage the subject matter of the Work. 147 9 Damages Limitation Neither party shall be liable to the other party for any consequential, indirect, special, incidental, exemplary, or similar, damages or losses, including loss of profits, arising out of or relating to this agreement, whether based in contract or tort or any other theory, even if a party has been advised of the possibility of such damages. Furthermore, the total aggregate liability of either party, under any theory, is limited to the agreement price. Indemnification McKinstry shall indemnify and hold harmless Customer from and against all third-party claims, damages, losses and expenses for bodily injury, sickness, disease, or death or destruction of tangible property, directly arising from McKinstry’s performance of the Work, but only to the extent caused by the negligent acts or omissions of McKinstry. Severability, Survival If any portion of this agreement shall be held invalid in whole or in part under any law, rule, regulation, or order, then such portion shall remain in effect only to the extent permitted, and the remaining portions of the agreement shall remain in full force and effect. Any invalid portions shall be substituted with an interpretation that most accurately reflects the Parties’ intentions. Amendment This agreement may not be amended except pursuant to a written amendment signed by an authorized signer of each Party. Complete Agreement This agreement, including the exhibits attached hereto, is a fully integrated agreement. Any legal terms and conditions appearing elsewhere in this agreement shall be ignored to the extent they contradict or are inconsistent with the terms and conditions contained in the foregoing numbered list. All previous agreements between McKinstry and Customer as to the Work are superseded by this agreement. 148 Geothermal Energy Update Town Council April 1st, 2025 149 Geothermal Thermal Energy Networks Town of Vail |TR vailgov.com This project is a networked thermal energy system with geothermal acting as storage for waste heat. This approach has the lowest long-term operating cost as it makes use of abundant thermal resources nearby. 150 Geothermal District Development Process Initial Scoping Form Geothermal District Partnership Agreements Implement Phased Construction Process (drilling, piping, etc.) Scoping/ Construction docs Costing & Financial Analysis Engineering & Design Retro- Commission ing and Verification Geological Studies and Analysis Phase I Phase 2 Phase 3 2023 2024 2025 2026/ 27-28 151 Geothermal Energy Grant Program Town of Vail |TR vailgov.com Deliverables Underway: •Engineering and design such as thermal load characteristics, geotechnical investigation, building and snowmelt plant integration, and initial loop design. •Analysis of thermal sources such as waste heat from chillers, wastewater treatment plant, snowmaking, ice rinks, solar thermal/PV, and especially geothermal. •Civil mapping with layout of loop piping •Schematic design level documents for project costing and constructability and basis for design and construction document. Example of Civil Layout 152 Project Stakeholder Workshop Town of Vail |TR vailgov.com Project Stakeholders include: •TOV •VRD •ERWSD •HOLY CROSS ENERGY •VAIL RESORTS 153 Energy and GHG Potential Town of Vail |TR vailgov.com 154 Project Next Steps Town of Vail |TR vailgov.com Project Next Steps: 5. Cost and Financial Analysis a. Federal, State and utility incentives and partnerships/financing opportunities b. Operational, maintenance, and utility costs 6. Define project size and develop construction documents 7. Form Geothermal District partnership agreements 8. Implement Phased construction process (drilling, piping, etc.) 155 Staff Recommendation and Next Steps Town of Vail |TR vailgov.com •Staff recommend that development work proceeds to meet grant deliverables and to answer fundamental planning questions around design, build, maintenance, ownership and operation of a geothermal energy network system for Vail. •Questions and Input? 156 AGENDA ITEM NO. 5.3 Item Cover Page DATE:April 1, 2025 TIME:15 min. SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion (2:25pm) SUBJECT:STR Excise Tax Ballot Update (3:20pm) SUGGESTED ACTION:Listen to update and provide feedback. PRESENTER(S):Lauren Noll, Revenue Manager and Carlie Smith, Finance Director VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Memo - STR Excise Tax Update 157 Town of Vail Page 1 Memorandum To:Town Council From:Finance Department Date:April 1, 2025 Subject:Short-Term Rental Excise Tax Update I.PURPOSE The town has contracted with Magellan Strategies to survey the community on a new STR excise tax that will be used for housing programs, projects, and initiatives in lieu of an STR fee. Council expressed interest in a two-tier tax model with different tax rates for condotels properties with a 24-hour front desk and properties without a 24-hour front desk, similar to a model used by the City of Aspen. Staff has researched impacts of this policy decision for Council to consider. The memo outlines the costs and benefits a tiered tax rate model would bring. II.BACKGROUND In 2024, Town Council requested an update on short-term rentals and asked staff to review the town's STR (short-term rental) regulations. On November 5th, Council received an 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 to guide recommendations for future change During that meeting, Council supported an increase in STR fees 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 up to an annual cost of $5,000 per bedroom. However, at the second reading of the proposed 158 Town of Vail Page 2 ordinance on January 21, 2025, and after deliberating on stakeholder feedback regarding the proposed regulatory fee, Council determined to no longer pursue a regulatory fee. Instead, Council directed staff to pursue a ballot initiative for an excise tax on STRs. III.TAX RATE CONSIDERATIONS Within the state of Colorado there are many jurisdictions where voters supported an excise tax on STRs.Attachment A shows examples and current tax rates of Vail’s peer resort communities that have an STR excise tax in place, and Aspen is the only jurisdiction in the state with a two-tier STR tax model. In Aspen, a 10% tax is collected for investment properties and second homes while a 5% tax is collected for primary residences and condotels. At the January 21, 2025 Council meeting, Council voiced interest in having staff research the feasibility of a two-tier excise tax. Staff has outlined considerations and challenges of this model specifically for Vail below: Reduced Sales Tax Collections In October of 2020, Vail passed Ordinance No. 9 requiring marketplace facilitators (i.e. Airbnb, VRBO, Vacasa, Evolve) to collect and remit sales tax and lodging tax. This was in line with a state initiative to establish standard sales tax definitions throughout all jurisdictions across the state. Through a marketplace facilitator, owners and property managers do not have the burden to collect and remit sales tax to Vail themselves; instead, the marketplace facilitator collects and remits on their behalf. This change made sales tax collections more efficient for the owners and property managers while also increasing compliance with sales tax collections. With this change, sales tax and lodging tax collections for STRs increased by 40%when comparing December 2019 to December of 2020. December of 2021 saw tax collections for STRs increase another 90% compared to December 2020. While some of this was related to impacts from the pandemic a significant portion of this was also related to STR collections compliance as a result of allowing marketplace facilitators collect and remit the tax on behalf of the properties. As another way to express how much these platforms collect, in 2024, three of the top 10 sales tax contributors in Vail were STR platforms, generating a total of $3.9 million, which is equivalent to 9.3% of Vail's total annual sales tax. Vail staff reached out to marketplace platforms like Airbnb and VRBO to ask whether they could collect taxes at two different rates. So far, one platform has confirmed that it cannot accommodate multiple tax rates, and the others have not yet responded. If these platforms are unable or unwilling to adjust their systems, Vail would have to require property owners and managers to handle tax collection themselves again, like Aspen— likely leading to a significant drop in overall sales tax revenue. 159 Town of Vail Page 3 Aspen and Vail have very different short-term rental (STR) programs. Aspen has approximately 750 total STRs, while Vail has more than 2,650. Additionally, Aspen has only 7 properties with 24-hour front desks compared to Vail’s 44. (Note, Aspen requires only one permit for all units under their management while Vail requires the licensure of each individual unit.) Unlike Vail, Aspen never required platforms like Airbnb or VRBO to collect and remit sales tax. Instead, property owners and managers are responsible for handling their own tax payments. When Aspen voters approved the STR excise tax, this system remained in place. Additionally, Aspen does not collect sales tax directly— the state collects it on the city’s behalf. Only the excise tax and lodging tax is remitted directly to the City of Aspen. Aspen relies upon STR caps as a way to encourage STR regulation compliance and does not audit the accuracy of excise tax remittance. Reverting to owner-managed tax collection in Vail after five years of reliance on marketplace platforms would be a significant burden to owners, property managers, and staff. The likelihood of errors increases considerably when individuals, rather than professional accountants, are responsible for tax remittance. Additionally, Vail’s town staff would face a heavy workload managing the transition—handling communications, training, and providing the necessary customer support. Even if the marketplace platforms accommodated our two-tiered tax structure, Vail Finance staff would need to perform extensive audit work per account to ensure Vail is collecting the correct taxes. There is no way to verify that the proper tax tier is being charged to guests without an in-depth and time consuming audit. Increased Staffing Resources Aspen’s audit process is limited. The city only audits STRs that fail to file a monthly tax return—it does not audit for tax rate compliance or accuracy. Approximately 85% of Aspen’s STR taxes are collected by property managers, and the city relies on its cap- and-waitlist system to encourage compliance. Property managers manage over 2/3 of the STRs of Vail. Since losing an STR license in Aspen makes it difficult to obtain a new one, property managers and owners have a strong incentive to follow the rules. In contrast, Vail does not have a cap on STRs, meaning there is less built-in pressure for property managers and owners to ensure strict tax compliance. To maintain Vail’s current level of customer service and oversight, additional staffing would be necessary to effectively manage the STR program; provide support to property owners and managers; and audit accounts for compliance and correctness. Individual account access and maintenance Currently there are approximately 2,650 active STR accounts in Vail. Of these, roughly 1,200 are 24/7 front-desk managed, 975 professionally managed, and 475 individual owner-managed. If a two-tiered tax was passed, it would be necessary for tax to be remitted individually on each account. 475 owners would be required to file monthly tax returns and property managers would be responsible for remitting tax on each individual 160 Town of Vail Page 4 unit they manage. Many professional companies manage 20+ accounts, some manage in excess of 50. Property managers would be heavily burdened tracking which accounts are taxed at which of the two rates and remitting sales tax on each account accordingly every month, leaving room for error. They would be physically filling out tax forms for each unit, not grouped together. To complicate matters, most properties also rent on multiple platforms which would require owners and property managers to track data on various sites to then input taxes monthly. It would be time-consuming and difficult for staff to audit these accounts thoroughly and timely, as well as collect on any back taxes filed incorrectly. III.SUMMARY Based on the above challenges and concerns, staff does not recommend implementing a two-tiered excise tax in Vail and believes the cost of this approach would outweigh the benefits. Outside of Aspen, there are no other communities with this structure. Staff’s main concern is the administrative burden to taxpayers with monthly tax returns required for both sales tax and a new excise tax for each individual unit as well as the potential loss in tax revenues due reduced oversight of compliance.This will be a significant change from the efficiency and high compliance rate of the current process of using marketplace platforms to remit taxes and will result in lower sales tax collections and overall tax compliance. Staff will bring back a draft survey on April 15th to the Town Council regarding a ballot initiative. A survey will then be conducted, and staff will bring the result back to Council to further refine a ballot initiative. 161 Town of Vail Page 5 Attachment- Peer Communities STR Excise Tax Comparison Community Tax Rate Effective Date Aspen 10% for investment properties and 2nd homes; 5% for primary resident and condotels 5/1/2023 Avon 2% for all properties not assessed as commercial 1/1/2022 Crested Butte 7.5% for all STRs 1/1/2022 Dillon 5% for all STRs 7/1/2023 Frisco 5% for all STRs 6/1/2022 Ouray 15%for all properties not assessed as commercial 12/6/2021 Steamboat 9% for all STRs 1/1/2023 Telluride 2.5%for all properties not assessed as commercial 1/1/2020 15.0% 10.0% 9.0% 7.5% 6.0% 5.0% 5.0% 2.9% 2.5% 2.0% 0.0% 0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0% Ouray Aspen Steamboat Crested Butte Carbondale Frisco Dillon Mt Crested Butte Telluride Avon Vail Excise Taxes on STR Stays 162 AGENDA ITEM NO. 5.4 Item Cover Page DATE:April 1, 2025 TIME:15 min. SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion (2:25pm) SUBJECT:West Middle Creek Financial Update (3:35pm) SUGGESTED ACTION:Listen to update and provide feedback. PRESENTER(S):Carlie Smith, Finance Director VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Memo - West Middle Creek Market Update Council Memo - WMC Monday Update 3-31-2025 Staff Presentation - West Middle Creek Financial Update 163 TO:Vail Town Council FROM:Finance Department DATE:April 1, 2025 SUBJECT: West Middle Creek Market Update I.SUMMARY During this evening session, Council will be asked to approve the 2nd reading of Ordinance No. 5, authorizing the town to issue Certificates of Participation in an amount not to exceed $65.5M. In parallel, this will also serve as direction for Vail Home Partners to issue housing revenue bonds not to exceed $145.0M. The approval of this ordinance does not commit the town to issuing the COPs. This memo outlines market changes since the 1 st reading potentially impacting future bond issuance. II.DISCUSSION Market Update The municipal market has become increasingly volatile since the first reading of Ordinance No. 5, with interest rates on 30-year municipal bonds rising by 26 basis points. As a result, fluctuations in interest rates have pushed the COP sizing to just under 1 basis point (0.01%) before reaching the maximum COP parameters set within this ordinance. With several weeks remaining before the anticipated bond sale in May, market conditions will continue to shift and Piper Sandler is cautiously optimistic that that rates will settle. Hilltop Securities, the town’s financial advisor, has indicated they are comfortable proceeding with the bonding process. However, they recommend postponing the town’s meeting with the rating agency (Standard & Poor), originally scheduled for next week, to the week of April 7. During tonight’s second reading of Ordinance No. 5, which defines the parameters of the town’s Certificate of Participation (COP), Council can consider three options: Adjust the COP parameters to increase the COP sizing, allowing for additional flexibility with an additional twenty-five basis points. Move forward with the ordinance as written, with the option to modify the COP parameters later if interest rates do not decrease, using an emergency ordinance on April 15. Deny Ordinance 5, which would delay or likely terminate the project. Staff, along with Piper Sandler and Hilltop Securities, will continue providing Council with weekly market updates leading up to the bond sale. Attached to this memo are updated slides from the first reading, reflecting recent market changes. 164 Town of Vail Page 2 Tonight’s ordinance currently allows the town to issue COPs for the West Middle Creek project within the following parameters: 40-year tax-exempt Certificate of Participation Up to $65.5M Interest rate not to exceed 6.5% (Approx $129.5M interest cost over life) Annual debt service not to exceed $8.5M These parameters assume the Town’s up front investment of $10.0M and a debt service subsidy up to $4.3M in the first few years of operation. Approval of the 2 nd reading of the COP ordinance will also serve as direction for the Vail Home Partners Corporation to approve a resolution authorizing the issuance of the housing revenue bonds. The Housing Revenue bonds, which will not be considered Town of Vail debt, will be approved with the following parameters: 40-year tax-exempt Housing Revenue Bond Up to $145.0M Interest rate not to exceed 7.5% (Approx $450.0M interest cost over life) Annual debt service not to exceed $35.0M Both debt service payments will be funded by rents from the West Middle Creek project but may require a town subsidy of up to $5.0M within the first 2 to 5 years of operations. This ordinance also authorizes the town to lease property to the issuing bank, US Bank, collateralizing the COPs. The leased property needed for the maximum COP sizing of $65.5M will require the Lionshead Welcome Center, Red Sandstone Parking garage, the Gymnastics center, the Golf Course Clubhouse, Donovan Pavilion, the Vail Public Library, as well as the East Vail, West Vail and Main Vail fire stations. The Town is working with Butler Snow and Land Title to make the entire golf course available to collateralize with potential to make that swap prior to the bond sales. This would free up the facilities listed above for possible future debt. III.SUMMARY The council should consider the following options prior to tonight's 2nd reading of Ordinance No. 5, Series 2025. Adjust the COP parameters to increase the COP sizing, allowing for additional flexibility with an additional twenty-five basis points. Move forward with the ordinance as written, with the option to modify the COP parameters later if interest rates do not decrease, using an emergency ordinance on April 15. Deny Ordinance No. 5, which would delay or terminate the project. 165 TO:Vail Town Council FROM:Finance Department DATE:April 1, 2025 SUBJECT: West Middle Creek Financing I.SUMMARY On Monday, March 31st, staff received additional background information to share with Town Council regarding a sensitivity analysis of interest rates and how they could impact the West Middle Creek project financing. Piper Sandler provided two options should interest rates continue to increase by as much as 25 basis points (.25%): 1)Issue a larger COP to offset the increased cost of financing a.The COP size would go from $65.5M to $71.4M b.This decreases the Housing Revenue Bonds to less than $121M, compared to $126M under the “base case”. c.Out of pocket repayment exposure to the town in the early years increases from $4.3M to $7.3M. $4.3M is the town’s “max” exposure under the current parameters. 2)Keep COP sizing, but the town offsets increased cost of financing with a bigger up-front cash input a.COP sizing stays at $65.5M (current “base case” max) b.The Housing Revenue Bonds are less than $121M c.Out of pocket repayment exposure increases from $4.3M to $5.2M d.The Town’s contribution increases from $10M to $15.09M This information was provided to inform Town Council of available options to continue moving forward with the project given current volatility with interest rates. Hilltop Advisors shared that interest rates have hit a 20-year high, however they are unsure whether rates will now experience a correction back to average levels, or continue to rise. Prior to marketing and pricing the town’s financing, Hilltop has advised that a buffer of 10 basis points should be available before going out to market. As of Friday, the town was at the top end of Council’s approved parameters. Staff recommends moving forward with authorization of financing at this time as it does not commit the town. On April 15, Council will receive another update of interest rate conditions. 166 West Middle Creek Project Vail,Colorado Council Update March 28, 2025 167 Financing Scenarios Update •All scenarios continue to target approx. 1.30x coverage on the revenue bonds. Differences in COP sizing as well as any potential out-of-pocket debt service the Town could be exposed to on the COPs are noted below. •Assumptions include: 5% vacancy rate; 3% annual NOI growth rate; $150/month parking fees; investing of the project fund, debt service reserve fund and capitalized interest fund. COP Par Amount $65,480,000 $65,500,000 $55,925,000 Town Equity Contribution $10,000,000 $24,411,457 $10,000,000 Potential Town Exposure $4,284,512 $7,131,906 $1,457,585 Years of Potential Exposure 2028-2033 2028-2035 2028-2030 Projected Surplus $97,969,314 $58,048,040 $144,509,001 Alternative 2 Unit Mix 35% @ 100% AMI 35% @ 110% AMI 30% @ 140% AMI (115% Avg AMI in Total) Summary of Financing Statistics Base Case Alternative 1 100% Average AMI 130% Average AMI 2029 Net Cash Flow $9,633,840 $8,068,127 $10,532,452 Total Interest $369,851,299 $328,427,186 $376,896,719 True Interest Cost 5.80%5.76%5.86% Average Life 33.5 Years 33.5 Years 33.6 Years Final Maturity 10/1/2064 10/1/2064 10/1/2064 Preliminary; subject to change.pipersandler.com |2 168 Financing Statistics OverTime •Estimating COP par amount of $65,480,000 based on today’s market conditions. Movements in interest rates have increased the COP sizing –less than 1 bp (0.01%) of cushion before reaching a COP sizing of $65,500,000. •30-year municipal interest rates have risen by 26 bps since March 11 as shown in the table to the right. Preliminary; subject to change.pipersandler.com |3 169 Sources & Uses (Base Case Scenario) Preliminary; subject to change.pipersandler.com |4 170 $0 $5 $10 $15 $20 $25 $30 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 12/31/2030 12/31/2031 12/31/2032 12/31/2033 12/31/2034 12/31/2035 12/31/2036 12/31/2037 12/31/2038 12/31/2039 12/31/2040 12/31/2041 12/31/2042 12/31/2043 12/31/2044 12/31/2045 12/31/2046 12/31/2047 12/31/2048 12/31/2049 12/31/2050 12/31/2051 12/31/2052 12/31/2053 12/31/2054 12/31/2055 12/31/2056 12/31/2057 12/31/2058 12/31/2059 12/31/2060 12/31/2061 12/31/2062 12/31/2063 12/31/2064 Millions Aggregate debt service exceeds projected net cash flow in 2028-33 (estimatedshortfall of $4.3M) Bond Net DS COP Net DS Net Cash Flow Preliminary; subject to change.pipersandler.com |5 Base Case – Projected Net Debt Service Graph Net cash flows exceeds aggregate debt service in 2034-2064 (estimated surplus of $98.0M) 171 pipersandler.com |8 Interest Rate Lookback 1. Source: TM3 and Treasury Data. As of 3/24/2025 5.00 4.75 4.50 4.25 4.00 3.75 3.50 3.25 3.00 5.25 Sep-2024 Oct-2024 Nov-2024 Dec-2024 Jan-2025 Feb-2025 Mar-2025 10/2/24 – 3.48% 3/13/25 – 4.22% 172 Appendix Debt Service Schedules for All Financing Scenarios 173 Base Case – Projected Net Debt Service Graph (Revenue Bonds) Period Principal Interest Gross Debt Service DSRF Requirement Released Capitalized Interest Net Debt Service NOI (3.0% Growth) Before R&R Less: Deposit to R&R Reserve Plus: DSRF Interest Earnings (@3.75%) Net Cash Flow Avail. For Debt Service Debt Service Coverage Ratio 12/31/2025 -2,734,693 2,734,693 -2,734,693 ------ 12/31/2026 -7,515,188 7,515,188 -7,515,188 ------ 12/31/2027 -7,515,188 7,515,188 -7,515,188 ------ 12/31/2028 -7,515,188 7,515,188 -3,757,594 3,757,594 3,042,404 42,707 1,526,336 4,526,032 1.20 12/31/2029 -7,515,188 7,515,188 --7,515,188 9,254,592 74,494 453,741 9,633,840 1.28 12/31/2030 -7,515,188 7,515,188 --7,515,188 9,691,931 76,729 453,741 10,068,944 1.34 12/31/2031 -7,515,188 7,515,188 --7,515,188 9,982,689 79,031 453,741 10,357,400 1.38 12/31/2032 -7,515,188 7,515,188 --7,515,188 10,282,169 81,402 453,741 10,654,509 1.42 12/31/2033 -7,515,188 7,515,188 --7,515,188 10,590,635 83,844 453,741 10,960,533 1.46 12/31/2034 -7,515,188 7,515,188 --7,515,188 10,908,354 86,359 453,741 11,275,737 1.50 12/31/2035 -7,515,188 7,515,188 --7,515,188 11,235,604 88,950 453,741 11,600,396 1.54 12/31/2036 -7,515,188 7,515,188 --7,515,188 11,572,672 91,618 453,741 11,934,795 1.59 12/31/2037 -7,515,188 7,515,188 --7,515,188 11,919,853 94,367 453,741 12,279,228 1.63 12/31/2038 -7,515,188 7,515,188 --7,515,188 12,277,448 97,198 453,741 12,633,992 1.68 12/31/2039 -7,515,188 7,515,188 --7,515,188 12,645,772 100,114 453,741 12,999,400 1.73 12/31/2040 -7,515,188 7,515,188 --7,515,188 13,025,145 103,117 453,741 13,375,769 1.78 12/31/2041 -7,515,188 7,515,188 --7,515,188 13,415,899 106,211 453,741 13,763,430 1.83 12/31/2042 195,000 7,515,188 7,710,188 --7,710,188 13,818,376 109,397 453,741 14,162,721 1.84 12/31/2043 425,000 7,503,975 7,928,975 --7,928,975 14,232,927 112,679 453,741 14,573,990 1.84 12/31/2044 675,000 7,479,538 8,154,538 --8,154,538 14,659,915 116,059 453,741 14,997,597 1.84 12/31/2045 945,000 7,440,725 8,385,725 --8,385,725 15,099,713 119,541 453,741 15,433,914 1.84 12/31/2046 1,235,000 7,386,388 8,621,388 --8,621,388 15,552,704 123,127 453,741 15,883,318 1.84 12/31/2047 1,555,000 7,313,831 8,868,831 --8,868,831 16,019,285 126,821 453,741 16,346,206 1.84 12/31/2048 1,895,000 7,222,475 9,117,475 --9,117,475 16,499,864 130,626 453,741 16,822,980 1.85 12/31/2049 2,270,000 7,111,144 9,381,144 --9,381,144 16,994,859 134,544 453,741 17,314,056 1.85 12/31/2050 2,670,000 6,977,781 9,647,781 --9,647,781 17,504,705 138,581 453,741 17,819,866 1.85 12/31/2051 3,100,000 6,820,919 9,920,919 --9,920,919 18,029,846 142,738 453,741 18,340,849 1.85 12/31/2052 3,570,000 6,638,794 10,208,794 --10,208,794 18,570,742 147,020 453,741 18,877,463 1.85 12/31/2053 4,070,000 6,429,056 10,499,056 --10,499,056 19,127,864 151,431 453,741 19,430,175 1.85 12/31/2054 4,610,000 6,189,944 10,799,944 --10,799,944 19,701,700 155,974 453,741 19,999,468 1.85 12/31/2055 5,195,000 5,919,106 11,114,106 --11,114,106 20,292,751 160,653 453,741 20,585,839 1.85 12/31/2056 5,815,000 5,613,900 11,428,900 --11,428,900 20,901,534 165,473 453,741 21,189,802 1.85 12/31/2057 6,495,000 5,265,000 11,760,000 --11,760,000 21,528,580 170,437 453,741 21,811,884 1.85 12/31/2058 7,225,000 4,875,300 12,100,300 --12,100,300 22,174,437 175,550 453,741 22,452,629 1.86 12/31/2059 8,005,000 4,441,800 12,446,800 --12,446,800 22,839,670 180,816 453,741 23,112,595 1.86 12/31/2060 8,850,000 3,961,500 12,811,500 --12,811,500 23,524,860 186,241 453,741 23,792,361 1.86 12/31/2061 9,750,000 3,430,500 13,180,500 --13,180,500 24,230,606 191,828 453,741 24,492,519 1.86 12/31/2062 10,715,000 2,845,500 13,560,500 --13,560,500 24,957,524 197,583 453,741 25,213,683 1.86 12/31/2063 11,750,000 2,202,600 13,952,600 --13,952,600 25,706,250 203,510 453,741 25,956,481 1.86 12/31/2064 24,960,000 1,497,600 26,457,600 12,099,772 -14,357,828 26,477,437 209,616 453,741 26,721,563 1.86 Preliminary; subject to change.pipersandler.com |8 Total:125,975,000 255,060,256 381,035,256 12,099,772 21,522,662 347,412,822 598,291,315 4,756,381 17,861,028 611,395,962 174 Period Principal Interest Gross COP Debt Service Capitalized Interest Net COP Debt Service Residual Net Cash Flow (Deficit) / Surplus Combined NOI Coverage 31/2025 -1,267,143 1,267,143 1,267,143 ---- 31/2026 -3,482,225 3,482,225 3,482,225 ---- 31/2027 -3,482,225 3,482,225 3,482,225 ---- 31/2028 -3,482,225 3,482,225 1,741,113 1,741,113 768,439 (972,674)0.82 31/2029 -3,482,225 3,482,225 -3,482,225 2,118,652 (1,363,573)0.88 31/2030 -3,482,225 3,482,225 -3,482,225 2,553,756 (928,469)0.92 31/2031 -3,482,225 3,482,225 -3,482,225 2,842,212 (640,013)0.94 31/2032 -3,482,225 3,482,225 -3,482,225 3,139,321 (342,904)0.97 31/2033 -3,482,225 3,482,225 -3,482,225 3,445,345 (36,880)1.00 31/2034 -3,482,225 3,482,225 -3,482,225 3,760,549 278,324 1.03 31/2035 -3,482,225 3,482,225 -3,482,225 4,085,208 602,983 1.05 31/2036 -3,482,225 3,482,225 -3,482,225 4,419,608 937,383 1.09 31/2037 -3,482,225 3,482,225 -3,482,225 4,764,040 1,281,815 1.12 31/2038 -3,482,225 3,482,225 -3,482,225 5,118,804 1,636,579 1.15 31/2039 -3,482,225 3,482,225 -3,482,225 5,484,212 2,001,987 1.18 31/2040 90,000 3,482,225 3,572,225 -3,572,225 5,860,582 2,288,357 1.21 31/2041 200,000 3,477,725 3,677,725 -3,677,725 6,248,242 2,570,517 1.23 31/2042 325,000 3,467,725 3,792,725 -3,792,725 6,452,533 2,659,808 1.23 31/2043 455,000 3,451,475 3,906,475 -3,906,475 6,645,015 2,738,540 1.23 31/2044 590,000 3,428,725 4,018,725 -4,018,725 6,843,060 2,824,335 1.23 31/2045 740,000 3,399,225 4,139,225 -4,139,225 7,048,189 2,908,964 1.23 31/2046 905,000 3,362,225 4,267,225 -4,267,225 7,261,931 2,994,706 1.23 31/2047 1,080,000 3,314,713 4,394,713 -4,394,713 7,477,374 3,082,662 1.23 31/2048 1,265,000 3,258,013 4,523,013 -4,523,013 7,705,505 3,182,492 1.23 31/2049 1,470,000 3,191,600 4,661,600 -4,661,600 7,932,912 3,271,312 1.23 31/2050 1,685,000 3,114,425 4,799,425 -4,799,425 8,172,085 3,372,660 1.23 31/2051 1,920,000 3,025,963 4,945,963 -4,945,963 8,419,931 3,473,968 1.23 31/2052 2,160,000 2,934,763 5,094,763 -5,094,763 8,668,669 3,573,907 1.23 31/2053 2,415,000 2,832,163 5,247,163 -5,247,163 8,931,118 3,683,956 1.23 31/2054 2,685,000 2,717,450 5,402,450 -5,402,450 9,199,524 3,797,074 1.23 31/2055 2,975,000 2,589,913 5,564,913 -5,564,913 9,471,733 3,906,821 1.23 31/2056 3,285,000 2,448,600 5,733,600 -5,733,600 9,760,902 4,027,302 1.23 31/2057 3,635,000 2,267,925 5,902,925 -5,902,925 10,051,884 4,148,959 1.23 31/2058 4,015,000 2,068,000 6,083,000 -6,083,000 10,352,329 4,269,329 1.23 31/2059 4,415,000 1,847,175 6,262,175 -6,262,175 10,665,795 4,403,620 1.24 31/2060 4,850,000 1,604,350 6,454,350 -6,454,350 10,980,861 4,526,511 1.23 31/2061 5,310,000 1,337,600 6,647,600 -6,647,600 11,312,019 4,664,419 1.24 31/2062 5,800,000 1,045,550 6,845,550 -6,845,550 11,653,183 4,807,633 1.24 31/2063 6,325,000 726,550 7,051,550 -7,051,550 12,003,881 4,952,331 1.24 31/2064 6,885,000 378,675 7,263,675 -7,263,675 12,363,735 5,100,060 1.24 Total:65,480,000 114,791,043 180,271,043 9,972,705 170,298,338 263,983,140 93,684,802 Projected $4.3M out-of-pocket exposure Base Case – Projected Net Debt Service Graph (COPs) Preliminary; subject to change.pipersandler.com |9 175 Disclosure pipersandler.com |10 Piper Sandler is providing the information contained herein for discussion purposes only in anticipation of being engaged to serve as underwriter or placement agent on a future transaction and not as a financial advisor or municipal advisor. In providing the information contained herein, Piper Sandler is not recommending an action to you and the information provided herein is not intended to be and should not be construed as a “recommendation” or “advice” within the meaning of Section 15B of the Securities Exchange Act of 1934. Piper Sandler is not acting as an advisor to you and does not owe a fiduciary duty pursuant to Section 15B of the Exchange Act or under any state law to you with respect to the information and material contained in this communication. As an underwriter or placement agent, Piper Sandler’s primary role is to purchase or arrange for the placement of securities with a view to distribution in an arm’s-length commercial transaction, is acting for its own interests and has financial and other interests that differ from your interests. You should discuss any information and material contained in this communication with any and all internal or external advisors and experts that you deem appropriate before acting on this information or material. The information contained herein may include hypothetical interest rates or interest rate savings for a potential refunding. Interest rates used herein take into consideration conditions in today’s market and other factual information such as credit rating, geographic location and market sector. Interest rates described herein should not be viewed as rates that Piper Sandler expects to achieve for you should we be selected to act as your underwriter or placement agent. Information about interest rates and terms for SLGs is based on current publicly available information and treasury or agency rates for open-market escrows are based on current market interest rates for these types of credits and should not be seen as costs or rates that Piper Sandler could achieve for you should we be selected to act as your underwriter or placement agent. More particularized information and analysis may be provided after you have engaged Piper Sandler as an underwriter or placement agent or under certain other exceptions as describe in the Section 15B of the Exchange Act. Piper Sandler Companies (NYSE: PIPR) is a leading investment bank and institutional securities firm driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and FINRA; in Europe through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Sandler Hong Kong Ltd., authorized and regulated by the Securities and Futures Commission. Asset management products and services are offeredthrough separate investment advisory affiliates. © 2025 Piper Sandler Companies. 800 Nicollet Mall, Minneapolis, Minnesota 55402-7036 176 AGENDA ITEM NO. 6.1 Item Cover Page DATE:April 1, 2025 SUBMITTED BY:Greg Roy, Community Development ITEM TYPE:DRB/PEC Update AGENDA SECTION:DRB/PEC (3:50pm) SUBJECT:DRB/PEC (5 min.) SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: PEC Results 3-24-2025 177 Planning and Environmental Commission Minutes Monday, March 24, 2025 1:00 PM Vail Town Council Chambers Present: David N Tucker William A Jensen Robert N Lipnick John Rediker Scott P McBride Robyn Smith Absent: Brad Hagedorn 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 the review of a variance from Section 12-6H-6 Setbacks, Vail Town Code in accordance with the provisions of Section 12-17, Variances, Vail Town Code to allow for a deck expansion within the side setback, located at 400 Vail Valley Drive Unit 4, Tyrolean Condominiums, Vail Village Filing 1, part of Tract B, and setting forth details in regard thereto. (PEC25-0002) Planner: Heather Knight Applicant Name: John R. Wilcox & Janice L. Ozzello, represented by Berglund Architects PEC25-0002 Staff Memo-032425.pdf Attachment A. PEC25-0002 Vicinity Map.pdf Attachment B. Applicant Project Narrative.pdf Attachment C. TyroleanUnit4-plans.pdf Attachment D. Public Comment for 031025 PEC Meeting.pdf Attachment E. Public Comment 031425 Wolfe.pdf Attachment F. Public Comment 031625 Caplan.pdf [Timestamp3:05:00] Knight says staff received updated drawing that were not included in the packet, staff was not aware that such drawings were uploaded. The change is a reduction of 2’ from the east edge of the proposed deck. George Ruther represents the applicant. The presentation will demonstrate the changes and revision. Rediker’s concern is that public notice is properly satisfied, if plans are substantially different, he would like to know that now. Ruther gives a presentation. He walks through the diagram of the previous proposal and the changes made since then. Rediker in an ideal world, an application is noticed with all the plans that will be presented with a Planning and Environmental Commission Meeting Minutes of March 24, 2025 1 178 meeting. However, there will not be much prejudice in proceeding with this. McBride asks if revised plans available online for this meeting. Knight says they were not. Ruther says they would like to proceed, they will demonstrate they meet the criteria. Jensen is concerned that new information is presented that the public hasn’t seen. Ruther notes there was a change in staff’s recommendation from the previous meeting. Knight says the memo was updated based on new information that was received at the previous meeting, but the recommendation remained the same. Ruther, agrees to give a presentation but to table the item to a future date so the update plans can be reviewed by staff and the public ahead of any decision. Ruther gives a presentation. The changes are in response to the PEC and public comments from the last meeting on March 10. He talks about the changes made, the proposed deck was pulled back two feet to the west, decreasing the proposed encroachment. Ruther gives a background on the Tyrolean. It was constructed as approved with variances to the setbacks in order to lower the overall building height. The deck that existed in 2011 that was enclosed was far more impactful than what is proposed today. There was 200 square feet enclosed on the east side of the building. 13 setback variances have been granted for this building, each time the PEC found extraordinary circumstances going back to the original condition of the building. He reviews the review criteria. Arguably the most potentially impactful deck area was previously remodeled and removed from the home. Ruther addresses Criteria two, the applicant is proposing the minimum relief necessary to achieve uniformity and compatibility. There is no further increase in the encroachment into the setback compared to what is existing. It will improve the circulation of the deck. It will have no negative effect on light and air, or distribution of population. The deck is well inside of 1981 setback, it is not a grant of special privilege. Not aware of another property in HDMF where the building height was reduced and pushed out wider like happened here. Rediker asks about the circulation issue that was brought up. Ruther says the applicant is proposing to replace a window with a door to provide access out to the new deck area. Smith asks if it is necessary for egress. Adam Gilmer with Berglund Architects says since it is an above grade deck it is not a requirement, it’s another way to improve the circulation. McBride asks about the railing. Ruther says the rail is solid, 42 inches will be screened by the railing. Rediker asks for public comment. Howard Willard lives in Vail Mountain View. Along with many residents, he attended the meeting to make comment. We’ll study the presentation over the next few weeks. Never seen that plan but there’s a dimension that the buildings are 40’ apart. Ask for the professionals to check that dimension. It was difficult to determine the square footage of the existing deck. Laura Willard is on the board at Vail Mountain View. The 40’ is a measurement from the second floor, would like some clarification on that. Will abstain because having some of the pictures and photographs will be more impactful at the next meeting. Jay Levine is president of the Vail Mountain View HOA. Wants to congratulate George on his award, but in this case they disagree. It’s a party deck well within the setback, the new door only makes it worse. It’s not the size of the deck, it’s the principle, we’ll have more to come from more residents at the next Planning and Environmental Commission Meeting Minutes of March 24, 2025 2 179 meeting. David Charles is in Vail Mountain View to the east. Concerned about the noise, it is a party deck. Concerned about the sound travelling. The point that was made about circulation is because people will be coming and going out of that door, speaking loudly, listening to music. It violates Town code, and potentially raises their property value but decreases ours. Concerned about the Town giving away its code rights so one party benefits over another. Dan Wolfe is in Vail Mountain View and agrees with the last speaker. The fact that circulation is used, implies that the current doors are not big enough for the crowds on the deck. Although the deck wall is solid, their heads will be over the deck and sound will carry. Lisa Widmeier is an owner in the building, supportive of what the board will present. She has been here since 1pm to lend support to residents. Rediker asks for commissioner comment. McBride is concerned with reference to south facing deck. The addition is on the east side. Hesitates to refer to it as circulation only. Robyn Smith made a motion to Continue to the PEC meeting on April 14th, 2025; Scott P McBride seconded the motion Passed (5 - 0). 3.2 A request for the review of a variance from Section 12-6H-6 Setbacks and Section 14-10- 4(B) Architectural Projections, Decks, Balconies, Steps, Bay Windows and the Like, Vail Town Code in accordance with the provisions of Section 12-17, Variances, Vail Town Code to allow for an addition and an expansion of an existing outdoor patio to extend up four feet (4’) and nineteen feet (19’), respectively, into the required twenty- foot (20’) setback, located at 400 Vail Valley Drive Unit 1/Vail Village First Filing, Tract B, Tyrolean Condominiums. (PEC25-0004) Planner: Heather Knight Applicant Name: Sorem Properties LLC, represented by Ruther Associates LLC and Pierce Austin Architects PEC25-0004 Staff Memo.pdf Attachment A. PEC25-0004 Vicinity Map.pdf Attachment B. Applicant Narrative.pdf Attachment C. Plan Set.pdf [Timestamp 4:05:30] Planner Knight gives a presentation. Knight walks through the request to the northeast of the structure. She talks about the background of the building. There are no documented variances for the Unit One. She walks through the review criteria; staff is recommending denial finding it does not meet the criteria. Smith, has Unit 1 has not taken a 250 addition? All the other units have taken these? Knight confirms that others have used the 250 addition. Some of those are within the setbacks as part of those 13 variances on the property. George Ruther represents the applicant. In review of town file, some folks used 250 additions with a setback variance and some did not. The code clearly articulates that is acceptable to use a 250 on non- conforming structures if it meets the criteria. He talks about the review criteria. They believe they meet all three. The variances will not have negative impacts on the relationship of the existing uses or structures. He talks about uses in the vicinity. The decks of Altus Vail are facing south, with the exception of one on the west which is over the height of the Tyrolean. The first two levels of Altus are enclosed parking. Planning and Environmental Commission Meeting Minutes of March 24, 2025 3 180 They are requesting equal degree of relief, there is no further encroachment than existing. Because it is a ground floor unit, with common area and parking there was not an opportunity to expand on the interior. When we talk about noise, we’re talking about a different thing than a setback as a land use regulation. The initial configuration requires variances for circumstances to expand that other properties don’t experience. Rediker asks for public comment. Laura Willard is secretary of the board at Vail Mountain View. She reads a letter. The board of directors expresses concerns about the patios. Expansion would be within inches of the property line, increasing from 24 feet to 54 feet. This is large enough to accommodate a large group, concerned about noise from the patio. The southeast corner is 35 feet from Vail Mountain View. They already have a large deck with essentially no setbacks, that is very possibly over the property line. She is pretty sure that what is proposed goes over the property line, concerned about that. David Charles is in Vail Mountain View. They are on the second floor and on the ground level on the backside (north) of building. Does not believe the variance should be granted and the other residents agree. No further comment. Public comment closed. Rediker asks for commissioner comment. Smith, this is valid for a variance, the hardship is this hole in the ground surrounded by mechanical equipment. They haven’t gotten a variance for this unit and everyone else has been able to get one. There is not a negative impact. From the public comment there is an existing noise issue, it’s not the additional square footage that is increasing the noise. If you have a noise problem talk to code enforcement, it is not grounds to deny a variance. This meets the criteria, it is not a double dip. If it looks like it’s not going to pass, they should be allowed to table. She supports this application. Lipnick has no comments. McBride, would like to hear more on the potential encroachment on the property line. Ruther, suggests a condition of approval that prior to building permit the line is surveyed to make sure. No one is proposing to build a deck on someone else’s property. Knight, the condition would be prior to building permit review. Ruther says they agree. McBride, the first two floors of Altus are parking structure? Ruther confirms, and the impacts we are talking about go both ways. McBride having a hard time on criteria 1 and 2. Not firmly entrenched at this point. Rediker, each one of these applications is different and important to consider on their own. These are not easy applications. He is hesitant to make existing non-conformities worse and allowing owners to build right up to property line. However, the applicant has made good points regarding the original construction of the building and how we came to this situation which is far from ideal. Looking at the 250 sf addition, believe they should be able to take advantage of that, puts them on equal footing with other residents of the building and others in the community. We already have an existing deck wall that is against the property line, the expansion is closest and most impactful to the Altus building to the east. Always respectful of job that staff does, staff is taking a conservative approach in this instance, and that’s what he expects staff to do, they gave us the letter of the law. In this instance it meets the criteria. Robyn Smith made a motion to Approve with the findings and conditions on page 12 and the additional condition that the applicant provide a survey prior to building permit review; John Rediker seconded the Planning and Environmental Commission Meeting Minutes of March 24, 2025 4 181 motion Passed (3 - 1). Voting For: Robert N Lipnick, Robyn Smith, John Rediker Voting Against: Scott P McBride 3.3 A request for a recommendation to the Vail Town Council for a major amendment to Special Development District No. 4 (Cascade Village), pursuant to Section 12-9(A), Special Development Districts, Vail Town Code, to allow for the development of a mixed use project on the property known as the Cornerstone site, located at 1276 Westhaven Drive/ Cornerstone Parcel, Liftside/Cornerstone Subdivision. (PEC25-0003) Planner: Greg Roy Applicant Name: PHH Design Development PEC25-0003 Staff Memo March 24, 2025.pdf Attachment A. Vicinity Map.pdf Attachment B. Narrative & Project Description.pdf Attachment C. Amendment Materials.pdf Attachment D. Plan Set Part1.pdf Attachment D. Plan Set Part2.pdf Attachment E. Renderings.pdf Attachment F. Applicant Presentation.pdf [ Timestamp: 0:00:00] Planner Roy gives a presentation. No final decision is requested at this time. He walks through the vicinity map. He walks through the history of the property. Rediker asks about the height with the previous approvals. Roy says during the approval process in 2008 the height was reduced from 91’ to 71’. Roy walks through the zoning standards of the proposal. Jensen asks about the EHU requirement. Roy walks through the housing plan; two units within Cornerstone and the remainder dormitory units in the CMC building. Roy and commissioners discuss the layout of the ground floor. Roy walks through the floor plans on each level. He clarifies that there are two sparking spaces per unit, 64 spaces. The employee housing units would have their parking in the Aria garage. Roy touches on the proposed landscaping. He talks about the proposed deviations from SDD. No. 4 and the criteria for review. This item is requested to be continued. Jensen asks about the dormitory housing. Should parking be a part of the dorm housing component? Roy says there are six spaces for the CMC dormitory, only requires one per code as it’s one unit. Smith confirms the dormitory is currently occupied. If the CMC is not accepted, then what happens to it? Roy says it would be employee housing regardless. Smith says it is below the minimum requirement necessary for dormitory housing, how does that work? Roy says rather than how many beds, it is how many employees can count towards that linkage requirement. Smith asks if there is an EHU requirement for the AU’s. Roy says that is another component, that would need to be accounted for in the housing plan. Planning and Environmental Commission Meeting Minutes of March 24, 2025 5 182 Roy says linkage or inclusionary it always takes into account the existing, regardless of whether they paid into commercial linkage or inclusionary zoning when they were built. The applicant gets credit for existing. The applicant is represented by Alonso Ruiz de Velasco and Doug Williams with PHH. Velasco gives a presentation. He talks about the opportunities for this project. He highlights changes from previous application, stairs rather than escalator in response to neighbor’s concerns, accommodating ticketing area, relocating existing bathrooms, small area for public lockers. They are adding public ski lockers accessible from the paseo, based on previous feedback. Smith talks about the determination of use for ski lockers on the ground level. Jensen asks where the restrooms are located? Velasco says near the stairs, accessible from the plaza. They have setback the building 10’ on the east end and have a trash/delivery area on the lower level. Velasco walks through the plan for the parking level. The height of the building was lowered by 11 feet. He talks about the setbacks on the project, including a new 10’ setback on the east side of the building. Lipnick asks about the proposed electric easement. Velasco says the existing electrical line would be relocated on the side of the building. Smith asks about the maintenance of the skier plaza. Velasco says that is the intent, they will work with the manager of that. Velasco walks through the elevations and the heights. Rediker asks the ceiling height of the residential units, Velasco says typically 10.5’ a little bit higher on the top floor. Smith asks about feedback from neighbors with the reduction in height. Velasco says they did have an open house in January. Velasco talks about employee housing. Smith doesn’t think that wayfinding is necessarily a public benefit. Velasco talks about public benefits, access and circulation, and the SDD design criteria. McBride asks about the height of the hotel. Velasco says it is at 54’. Roy says because there is not underlying zoning, it is measured against the development plan from the previous approval. McBride thinks the perspective doesn’t accurately depict how much taller the new building is. Smith asks about the applicability of no. 5. Rediker asks if there will be a front desk? Velasco says these units can be added to the rental pool that is managed by the hotel. Planning and Environmental Commission Meeting Minutes of March 24, 2025 6 183 Rediker asks about the trash, are there dedicated employees that handle trash? Velasco says there will be dedicated staff for overall maintenance of the area affiliated with the hotel. Rediker right now all the lots are owned by the same party. What happens if down the road we have different ownership in Cornerstone, how are we going to ensure that trash collection is managed properly with a separate HOA in the future? Velasco, similar to how it works today with the CMC. It has eight units, under an HOA. That all has to be built into the HOA to make it function. Rediker, are there employees for the CMC HOA? Velasco says the units that are managed by the hotel in the rental pool have that service attached. Smith, is there a place for an additional loading dock? Velasco, we are looking at a couple of options. Smith, is there a way you can account for this potential place because it would solve a lot of questions that people have. It would illustrate you have a plan to resolve loading. Rediker asks about the circulation in the re-designed roundabout. Velasco says there are separate spaces for bus pickup and vehicle drop-off as well as Liftside access. Rediker, how are we going to control people stopping on the north side and blocking homeowner’s access into Liftside? Rediker asks where loading and delivery will occur, for instance packages for homeowners. Velasco, similar to other properties it comes into the existing loading dock and is later distributed. Smith asks about the Public Works considerations. Tom Kassmel, Town Engineer, says we share the same concerns and we’ve given some preliminary comments. At the moment we prefer the original design. This is something that Liftside had concerns with, recommends a meeting so we can talk through the concerns. There is more discussion to be had with this. McBride also has concerns about the proposed configuration, and Liftside being able to access their drive. The PEC and Velasco discuss the management of the drop-off, trying to avoid delays and obstruction as much as possible. Smith and Kassmel discuss snow storage requirements. Lipnick asks how the fourth portal will affect this project. Kassmel says assuming West Lionshead gets built it will be a more major portal to the mountain. Don’t necessarily think it will have a huge impact, in the interim there might be more skier dropoff here in Cascade. Smith asks about the ski storage and owner’s lounge. Council is wrong about this being a public benefit, you can’t dictate a commercial use remain in perpetuity. Roy says that can be included in a DIA, that was something that was included in Solaris. If they wanted to change that they would have to go back to Council to change that. Planning and Environmental Commission Meeting Minutes of March 24, 2025 7 184 Smith recommends a grab and go or small coffee shop in the current lobby area for the ski lockers. McBride is ok with it, if it can be included in a Developer Improvement Agreement. Rediker asks for public comment. Margie Ortiz is a homeowner in Liftside. Has concerns about the proposal, didn’t really consider the effects on Liftside. Wants a sun/shade analysis to see how it impacts the pool area. How is it going to affect visual line of site? It is going to impact our property value. Hadn’t thought until this discussion about the parking issues of driving in there. The building is really high, even if they took off two floors. Bob Rosen is a member of the Metro district board. You all had very appropriate comments of asking the right questions. My concern is the property rights of the district. We own things and the plans are using our property without having an agreement with us. We have a recorded easement, they need our consent. They’ve told you they’re negotiating for an electric easement, they can’t do that because the easement is with the district and we’re party to that. If the utility wants to change it, they need our consent. Wants to know that we are going to have real discussions before anything is approved. We have a prescriptive easement for the ticket office. We’re willing to deal with Cornerstone on all of these issues. Stan Beard lives in the neighborhood. He can’t tell from any of the drawings if they’re giving a deceleration and acceleration lane on the frontage road. Is that still in the design? You can tell they’ve attempted to address some comments, but when you see the perspective with what is there now is alarming. There’s a total disregard for the homeowners that have lived there all this time. The design doesn’t fit in with the neighborhood and surrounding buildings. You don’t have to maximize the property fully, it can still be valuable. Don’t send something to the council that they will feel political pressure to vote for. Mark Lessens has been in Cascade for 25 years. Has a safety concern, has pictures which show them unloading into the hotel and taking up a lane. The developer has to develop a way to get the product in and out without obstructing two lanes of traffic. Lorenza serves on the HOA in Liftside. Concerned about the Cornerstone building, it will have a direct and significant impact on Liftside. After its unanimous rejection in 2024 we had hoped for significant revisions. We still see little to no substantive changes to address the core issues. The height is too high, out of scale, the increase in density is not appropriate. There is a lack of proper buffer zones. They have failed to address community feedback. The lack of a dedicated loading zone will force activity into single lane. This doesn’t meet criteria, doesn’t align with scale and design of area. Requests the PEC recommend denial, applicant has had multiple opportunities to align but have failed to do that. Janie Lipnick lives in the neighnorhood. When Cornerstone had an open house, they said there would be a loading dock in the building. The new roundabout is going to create a problem for everyone getting in and out of the neighborhood. We keep hearing that they will deal with this down the line, this has been going on for a year. Agrees that height, mass, design does not fit with the neighborhood. The Metro board doesn’t have any agreements in place with Cornerstone. Zach Stevens is a Vail resident. He’s a practicing architect and familiar with Liftside. The submissions lacked context, shows viewshed analysis of what the effect is. Talks about the elevations and building height. Take a step back and understand what they’re not saying with this proposal. There is inconsistency with how we judge these special development districts. Scott Wagner is on Metro District board and lives in neighborhood. This is a broken record, to address things that are not getting addressed. Do they have the requirements to meet service needs? There is not a way to get through the paseo with a servicing truck for the lift. We have an ongoing complaint to protect the rights for the lift. The district has responsibility of the lift and the access and the easement. Vail Resorts is our customer, they operate it. There is nowhere for cars to queue up in that area. If the Planning and Environmental Commission Meeting Minutes of March 24, 2025 8 185 circle is a public street, why are we allowing them to change it without input from the neighbors. The height was talked about from Westhaven, it was disregarded the people that live on the other side of the river, they will see the 86’. If they are granted this, it will be the new height moving forward. They tried to do a master plan with Council, each building has to stand on its own. The CMC dorms for EHUs were done before this meeting was started a year ago. That was for the J-1s for the hotel. The views from Liftside will be extremely impacted. They had the open house in January, they waited until most of the people would be out of the neighborhood. Thanks Smith for service on the PEC. Thad King is president of Liftside Condos. They are opposed to Cornerstone, it proposes to take GRFA and dwelling units approved in 2008 for the CMC and would reallocate unused portions to the Cornerstone site. The parcel can be properly developed without those additions. Just because there are approved but unused density and GRFA, should not mean that the developer is justified in eliminating setbacks and adding height and mass. In favor of revitalization, but it would be more appropriate for the excess density in 2008 to remain with the CMC building for it’s further redevelopment, or be used for Aria. Urges PEC to again recommend denial. Donna Neff is an owner of 30 years in Liftside. Loading and unloading zones in an already congested area, the liability for the Town and all owners is amazing. Wasn’t fond of the disingenuous parts of the presentation. What constitutes facts, is the Town doing an analysis on what would be safe for that roundabout? Amelia Stefan is an attorney at Foster Graham. Represents Nolegio partners who are property owners in Liftside. Clients maintain that development is positive and supportive of development in the village. However, frustrated that the applicant continues to present a proposal that doesn’t conform with development in the village and criteria in the code. Looking at the criteria, one criteria is that it is consistent with all plans and policies for the Town. The Land Use plan, one of the standard is that the density within accommodation area is 25 DU’s/acre, the applicant is proposing a density of 43 DU’s/acre in that area (page 25). Clients are concerned that the height was only reduced by 5’ despite this being the third iteration. Neighbors were clear that the height and bulk was their primary concern. The view of the west building may only be 60 feet from Westhaven, this amendment will amend the zoning for all property within SDD No. 4. This would allow any new building to be built to this height. Supports a town led master planning process to reinvision what this would look like. Jill Tanenbaum has been in Millrace for 35+ years. Where are guests of owners and retail guest going to park? Reiterates that she’s very concerned about the traffic and congestion getting in and out of the neighborhood. Concerned about skier dropoff, this will be dangerous for the neighborhood. Alberto Varon thanks commissioners. He owns a unit at Liftside, concerned about the current proposal. Thanks PHH for hearing some of their concerns. The proposal is out of line with the character of the neighborhood. Much of the public benefit involves landscaping, and the bulk is on their property. No food and beverage or public amenities, not clear how those benefits anyone. The traffic concerns are not addressed. Not clear how Liftside will access their parking. There’s been no comment about how Town will handle vehicular and pedestrian traffic, how will that be addressed on the feeder road. There is a lack of dedicated loading zones. Not clear how the 2008 approval still has standing. Kristina Hedley lives in the neighborhood. The developer spoke about this being the first phase, encourages PEC to consider what that means. There is already high activity, concerns about what this will bring, especially with West Lionshead. The height should also be considered from the lift. Mitchell Karlin is on Greenhill Ct and owner at Millrace. They’re anticipating that owners or rental people hand carry their trash down which is not realistic. Scott Wagner again, the Council had mentioned concerns about having a oil/water separator in the garage, that is also a concern of ERWSD and neighbors. Planning and Environmental Commission Meeting Minutes of March 24, 2025 9 186 Rediker closes public comment. He asks for commissioner comment. Smith asks if there are requirements for sand/oil separators. Roy says there aren’t but it’s generally asked for and complied with, it’s done almost everywhere. McBride asks about driveway off Westhaven. Velasco says it is the driveway to the hotel. McBride is concerned about the height, it doesn’t conform to buildings in the area. Doesn’t like that the presentation is skewed to Westhaven, we need to consider the view from the other perspective. The burden this places on the traffic circle, to put all the burden on public property doesn’t seem right. The Ritz in Lionshead is a good example of where loading etc.. is provided on property. This is trying to shove ten pounds into a five-pound bag, as opposed to building something that conforms. Main concerns are height, lack of ingress/egress on private property, and the loading area. Jensen says public comment is very consistent and strong, encourages applicant to listen to it. He is supportive of development at Cornerstone, it would enhance all the properties if done right. Especially with West Lionshead coming, sees this as a neighborhood portal and not a public portal. The scale needs to be reduced considerably, encourages applicant to enter in serious conversations with the Metro district. Supportive of it being developed, will be good for the neighborhood, but not the approach that has been taken so far. Lipnick has concerns about mass, scale, and the height of 86’. Concerned about parking and dropoff, trying to navigate that circle. Also concerned about the easements, apparently the applicant hasn’t discussed it with the metro board. Good public comments, that should be a concern of the applicants. Smith, you have made some changes to the proposal. This is a great group that will stay involved in this process, the acceptance of this is up to Council. Your client has assumption that they can produce a village without the master planning process that produces villages. You risk more than you would if you started with the master planning process. It is more likely that West Lionshead comes out with a master plan than where you are at today. Everyone will benefit from your investment and intention, just need to find how to make that work with the process. Doesn’t think the EHUs in the CMC building should be accepted as mitigation for Cornerstone. There are few people speaking in this process about the housing requirement, we have an obligation to provide better housing than what is included here. Tucker, it’s good to see you reflecting some of the changes. You’re showin us what you would like us to see. The traffic study is missing the circle as part of the traffic study. A year ago we asked you to talk to the neighbors, there is a lot of opposition to your idea. Until you get that straight, development will be difficult. Trash still makes no sense, with the hand carried trash and carting it over and down two stories to the loading dock. Thanks for the presentation. Rediker, we had good public comment. Like to hear more from the Town and applicant about the lane off the frontage road and traffic study to be updated. Will the loading and unloading be adequate? It isn’t even adequate for the existing uses. Still concerned about the parking, worried about moving commercial parking off-site. We have a common owner now, but when lots get sold off how do we guarantee that the off-site parking is going to be satisfied. Would like more clarity so everybody understands the PEC decision making about the criteria, easements, and agreements with outside parties. Wants everyone to understand where the PEC’s authority lies. Being able to access the lift for major repairs is a good comment. There are still significant concerns that are being expressed in regard to the bulk and the mass. Robyn Smith made a motion to Continue to the meeting on April 14th, 2025; Robert N Lipnick seconded the motion Passed (6 - 0). Planning and Environmental Commission Meeting Minutes of March 24, 2025 10 187 4. Approval of Minutes 4.1 PEC Results 3-10-25 PEC Results 3-10-25.pdf Robyn Smith made a motion to Approve ; Scott P McBride seconded the motion Passed (3 - 0) Lipnick abstained. 5. Information Update 6. Adjournment Robyn Smith made a motion to Adjourn ; Scott P McBride seconded the motion Passed (4 - 0). Planning and Environmental Commission Meeting Minutes of March 24, 2025 11 188 AGENDA ITEM NO. 7.1 Item Cover Page DATE:April 1, 2025 SUBMITTED BY:Liz Gladitch, Economic Development ITEM TYPE:Information Update AGENDA SECTION:Information Update (3:55pm) SUBJECT:January 16, 2025 VLMDAC Meeting Minutes SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: VLMDAC Meeting Minutes 1-16-2025 189 Public Notice Vail Local Marketing District Advisory Council Monthly Meeting Minutes January 16, 2024 8:30am VLMDAC Board Member Attendees: In-person- Esmarie Faessler (Sonnenalp), Jana Morgan (Sweet Basil), Kim Fuller (Jaunt Media Collective), Douglas Kessler (Homeowner), Sam Biszantz (Council Rep/Root & Flower) Molly Bond (Vail Resorts), Sarah Franke (Vail Valley Foundation), Jeremy Gross (Town of Vail) Zoom- Patrick Davis (Manor Vail), Jonathan Reap (Four Seasons) Additional attendees: In-person- Mia Vlaar (Town of Vail), Liz Gladitsch (Town of Vail), Chris Romer (VVP), Kim Brussow (Vail Valley Partnership), Zoom- Kay Schneider (Vail Valley Partnership), Abby Oliveira (Town of Vail), Diana Ramirez (Town of Vail), Amanda McNally (MYPR), Angela Mueller (Ren Event Productions), Beth Wright-Cheeseman (Miles), Bob Brown (BAAG), Clare Hefferren (Local Event Producer), Jenna Luberto (BAAG), Kim Rediker (Vail Raquet Club), Kristin Yantis (MYPR), Michal Bednarczyk (970), Jeremy Coleman (BAAG), Mark Masters (Vail Comedy Show), Jake Shipe (Town of Vail), Michal Bednarczyk (970), Ben Walton (Miles), Sarah Kessler (Hythe), Tor Linzee (Hythe), Laura Libby (Miles) Call to Order Esmarie called the meeting to order at 8:37 AM 1. Minutes Approval (1 minute) o Action Requested of Board: Approve minutes 2. Monthly Financial Report (5 minutes), Jake Shipe, Town of Vail 3. Board Training (45 minutes), Mia Vlaar, Town of Vail 4. Group Sales (15 minutes), Kim Brussow, Vail Valley Partnership o Kim to explore upgrading to a 2 diamond listing on Cvent for Vail. o VVP to check other markets to see what their sales staff looks like o Kim to create an overlay of base occupancy, group occupancy and existing events 190 o Kim and 970 Design: Look into all Kim’s current group assets and work with 970 to update B Roll etc. o Kim to utilize the new Cvent planner navigator tool to target planners booking in Denver and mountain destinations o Kim to look into in-market events in Houston and Chicago in 2025 to re-establish relationships with planners. o New Group Ad Hoc Group: Patrick and Jonathan 5. Brand Perception Study (30 minutes), Alex Molin, Research Director, Future Partners 6. 2025 Summer Campaign Update (10 minutes), 970 Design 7. Whistler Peer Visit Recap (10 minutes), Sam Biszantz, Mia Vlaar, Jeremy Gross 8. Other Business 9. Public Comment 10. Adjournment Upcoming Meetings: VLMDAC Monthly Meeting Thursday, April 17, Grand View Room 191 AGENDA ITEM NO. 7.2 Item Cover Page DATE:April 1, 2025 SUBMITTED BY:Jake Shipe ITEM TYPE:Information Update AGENDA SECTION:Information Update (3:55pm) SUBJECT:March 2025 Revenue Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: March Revenue Update 192 1 TOWN OF VAIL REVENUE UPDATE April 1, 2025 4.0% General Sales Tax Upon receipt of all sales tax returns, February 2025 collections are estimated to be $6,151,840, up 1.2% from 2024 and up 1.5% from the budget. 2025 YTD collections of $11,993,697 are up 0.9% from 2024 and up 1.2% from the budget. Inflation as measured by the consumer price index was up 2.8% for the 12-months ending February 2025. The annual budget totals $42.1 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, February 2025 collections of the 0.5% housing sales tax are estimated to be $749,345, up 1.1% from 2024 and down (0.5)% from the budget. 2025 YTD collections of $1,460,076 are down (0.3%) from 2024 and up 0.9% from the budget. The annual budget for the housing fund sales tax totals $5.2 million. Real Estate Transfer Tax (RETT) RETT collections through March 25 total $1,853,129, down (7.7)% from 2024. The budget for RETT collections totals $7.7 million for 2025. Construction Use Tax Use Tax collections through March 25 total $294,157 compared to $218,833 in 2024. The budget totals $2.5 million for 2025. Lift Tax Lift tax collections for February 2025 total $3,244,838, up 3.5% or $109,910 from February 2024. The budget totals $6,915,427. Daily Parking Sales Daily sales from the parking structures from November through March 24th total approximately $6,491,368, down (2.1)% from time last year. This amount includes daily fees charged to the parking pass holders. 193 2 Parking Pass Sales Parking pass sale revenue through March 24th for the 2024/2025 winter season totals $1,232,669, up 7.9% or $90,288 from this time last year. In order to provide a better customer service experience while staff explored a new pass sales system, the annual fees for the Eagle County Local and Vail Local passes and were automatically renewed for the 2023/2024 winter season. A total of 4,535 passes have been sold this season compared to the 4,437 passes purchased and utilized to date during the prior winter season. Had the town not waived fees for local passes, pass sales would be down $(16,437) or (1.3)% from the prior season. *2023/24 Season figures represent November 2023 through February 2024. Pass Type 2024/25 Season Sales 2023/24 Season Sales* 2023/24 Auto- Renewed Passes Utilized* Total 2023/24 Pass Sales/Utilized* Change from prior season Premier 21 25 - 25 (4) Vail Village Business Premier 69 60 - 60 9 Lionshead Business Premier 7 5 - 3 2 Employee 488 427 - 427 61 Employee Plus 330 351 - 351 (21) Eagle County Local* 1,917 396 1,453 1,849 68 Vail Local* 1,703 357 1,363 1,720 (17) Total 4,535 1,621 2,816 4,437 98 194 Preliminary 2025 Budget % change % change 2020 2021 2022 2023 2024 Budget Variance from 2024 from Budget January 4,076,145$ 3,422,209$ 5,217,125$ 5,911,572$ 5,805,199$ 5,791,927$ 5,841,857$ 49,930$ 0.63% 0.86% February 4,285,633 3,691,850 5,686,585 6,041,108 6,079,509 6,063,693 6,151,840 88,147 1.19% 1.45% YTD 8,361,778$ 7,114,060$ 10,903,710$ 11,952,680$ 11,884,708$ 11,855,620$ 11,993,697$ 138,077$ 0.92% 1.16% March 2,243,518 4,364,797 5,912,059 6,055,992 6,412,535 6,162,148 - April 427,518 1,751,528 2,234,296 2,264,892 1,842,893 2,082,859 - May 503,828 1,061,516 1,227,974 1,118,011 1,176,629 1,152,860 - June 1,023,517 2,149,312 2,317,931 2,272,457 2,356,761 2,355,770 - July 2,084,644 3,491,668 3,507,973 3,412,277 3,643,192 3,629,309 - August 2,138,838 2,877,550 2,997,389 2,932,111 3,052,213 3,038,643 - September 1,767,393 2,359,528 2,441,331 2,508,064 2,417,132 2,414,174 - October 1,371,727 1,734,964 1,729,558 1,773,358 1,753,419 1,752,419 - November 1,425,461 1,880,397 1,902,643 1,901,141 1,844,461 1,843,961 - December 3,625,189 5,749,365 5,602,018 5,691,428 5,815,002 5,776,237 - Total 24,973,411$ 34,534,683$ 40,776,882$ 41,882,411$ 42,198,944$ 42,064,000$ 11,993,697$ 138,077$ 0.92% 1.16% Preliminary 2025 Budget % change % change 2022 2023 2024 Budget Variance from 2024 from Budget January 645,487$ 720,906$ 705,167$ 711,525$ 710,732$ (793)$ 0.79% -0.11% February 702,730 736,788 741,549 753,337 749,345 (3,992)$ 1.05% -0.53% YTD 1,348,217$ 1,457,694$ 1,446,716$ 1,464,862$ 1,460,076$ (4,786)$ 0.92% -0.33% March 719,717 738,244 783,123 769,644 - April 269,018 271,930 222,032 249,107 - May 146,657 132,333 139,793 143,483 - June 280,460 275,113 284,485 291,846 - July 424,602 412,849 439,142 448,039 - August 361,165 352,887 369,212 377,205 - September 294,861 304,068 293,066 299,772 - October 207,397 213,568 210,364 217,051 - November 230,383 229,092 222,639 228,495 - December 671,982 687,985 699,750 712,030 - Total 4,954,459$ 5,075,763$ 5,110,322$ 5,201,534$ 1,460,076$ (4,786)$ 0.92% -0.33% 0.5% HOUSING SALES TAX 2025 Budget Comparison 4.0% Collected Sales Tax Actual 0.5% Collections 0.5% Collected Sales Tax Town of Vail Revenue Update April 1, 2025 4.0% GENERAL SALES TAX 2025 Budget Comparison Actual 4.0% Collections 19 5 Town of Vail Revenue Update YTD 4% General Sales Tax Collections By Year April 1, 2025 Through February 28 February 4% General Sales Tax Collections By Year Through February 28 •February collections of $6,151,840 are up 1.2% from prior year and are up 1.5% from the budget. $3,691,850 $5,686,585 $6,041,108 $6,079,509 $6,151,840 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2021 2022 2023 2024 2025 $7,114,060 $10,903,710 $11,952,680 $11,884,708 $11,993,697 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2021 2022 2023 2024 2025 •YTD collections of $11,993,697 are up 0.9% from prior year and are up 1.2% from the budget. •Inflation as measured by the consumer price index was up 2.8% for the 12-months ending February 2025. 196 Town of Vail Revenue Update April 1, 2025 February 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through March 2025 February Collections YTD Collections •This chart shows YTD collections of 1% RETT, segmented by real property values. 2025 collections are down (7.7)% from the prior year. $1,517,141 $1,564,967 $1,204,645 $2,007,242 $1,853,129 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2021 2022 2023 2024 2025 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million •February collections of $749,345 are up 1.1% from prior year and are down (0.5%) from the budget. YTD collections of $1,460,076 are up 0.9% from this time last year and are down (0.3)% from the budget. $702,730 $736,788 $741,549 $749,345 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2022 2023 2024 2025 $1,348,217 $1,457,694 $1,446,716 $1,460,076 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2022 2023 2024 2025 197 Town of Vail Revenue Update March 4, 2025 Construction Use Tax by Year YTD Through March 2025 YTD Lift Tax Collections YTD Through February 2025 •Use Tax collections through March 25 total $294,157 compared to $218,833 from this time last year. This is an increase of 34.4%. $574,257 $227,296 $570,080 $218,833 $294,157 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2021 2022 2023 2024 2025 •2025 YTD lift tax collections of $3,244,838 are up 3.5% or $109,910 from the same time last year. $2,442,619 $2,894,759 $2,929,120 $3,134,928 $3,244,838 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2021 2022 2023 2024 2025 198 Vail Business Review February 2025 April 1, 2025 The Vail Business Review breaks down the 4.5% sales tax collected for the month of February. The 4.5% sales tax includes the town’s general 4% sales tax and the 0.5% housing sales tax supported by Town of Vail voters during the November 2021 election, effective January 1, 2022. The housing sales tax sunsets on December 31, 2051. February 4.5% sales tax was up 1.2% from the prior year. Retail increased 0.6%, lodging decreased (0.6)%, food and beverage increased 5.9%, and utilities/other increased 1.5%. Excluding the out-of-town category, sales tax for the month of February was up 0.7% compared to prior year. Town of Vail sales tax forms, the Vail Business Review, and sales tax worksheets are available on the internet at vail.gov. You may email me to request to have the Vail Business Review and the sales tax worksheet emailed to you automatically. Please remember when reading the Vail Business Review that it is produced from sales tax collections as opposed to actual gross sales. If you have any questions or comments, please feel free to call me at (970) 479-2125 or Carlie Smith, Finance Director, at (970) 479-2119. Sincerely, Lauren Noll Revenue Manager 199 February 2025 Town of Vail Business Review February Sales Tax Collections by Year February 2025 Sales Tax February 2024 Sales Tax Collections by Business Type 1,925,751 Lodging 3,186,930 Food & Beverage 1,458,525 Utilities & Other 329,659 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 0.6% 5.9%1.5% Retail 3,693,712 6,409,815 6,769,365 6,822,437 6,900,866 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2021 2022 2023 2024 2025 General Sales Tax Housing Sales Tax • February 2025 retail sales increased 0.6%, lodging decreased (0.6)%, food and beverage increased 5.9%, and utilities and other increased 1.5%. • The figures above reflect 4.5% sales tax. Retail 1,915,116 Lodging 3,205,109 Food & Beverage 1,377,513 Utilities & Other 324,699 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 (0.6)% • This report represents collections of Town of Vail sales tax, as opposed to actual gross sales. • On January 1st, 2022, Town of Vail sales tax increased from 4.0% to 4.5% on all items except food for home consumption. 2022-2025 above include the 0.5% increase to sales tax, depicted in light blue. 2021 shows 4.0% sales tax collections. • Total February 2024 collections were $6,822,437; February 2025 collections were $6,900,866, up from the prior year 1.2%. 200 February 2025 Sales Tax Town of Vail Business Review February 2024February 2025 Geographic Area Trends by Year February Sales Tax Sales Tax by Location Other Areas 15% Lionshead 19% Out of Town 20% Vail Village 46% • Vail Village sales tax increased 2.9%, Lionshead increased 1.8%, Other Areas decreased (7.2)%, and Out of Town increased 2.9%. Excluding Out of Town collections, all areas were up 0.7%. • The figures above reflect 4.5% sales tax. 538,639 947,473.29 673,635 1,263,893.68 880,156 1,360,984.03 1,601,281 2,837,463.83 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2021 2022 2023 2024 2025 Vail Village Out of Town Lionshead Other Areas 3,023,9821,466,922 1,312,734 965,727 • This chart shows February sales tax collections by geographic area over time. • 2022-2025 include the 0.5% increase for housing sales tax, depicted in lighter shades. General 4.0% sales tax collections are shown in darker shades. 1,055,2081,279,317 1,359,443 3,128,468 3,220,125 1,302,810 1,399,150 978,780 Other Areas 14% Lionshead 19% Out of Town 20% Vail Village 47% 201 Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail February 2025 Sales Tax Town of Vail Business Review Apparel $439,944 Grocery $259,541 Gallery $5,605 Gifts $9,600 Jewelry $75,062Retail Liquor $80,854 Retail Other $277,145 Sporting Goods $575,018 Online Retailers $202,982 Retail Home Occupation $0 • February 2025 accommodations services decreased (0.6)% from the prior year. Short-term rentals decreased (8.3)% and hotels and lodges increased 2.7%. • The figures above reflect 4.5% sales tax. • Short-term rental sales tax collection numbers include online marketplace facilitators like Airbnb and VRBO. Revenue collections from facilitators may include some hotels and lodges. 2,256,009 925,432 2,259,818 945,291 2,320,569 866,361 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Hotel and Lodges Short-Term Rentals 2025 2024 2023 202 Retail 259,139                                                  281,095                                                   ‐7.81% Lodging 588,200                                                  643,055                                                   ‐8.53% F & B 125,267                                                  124,718                                                  0.44% Other 6,174                                                      6,340                                                       ‐2.61% Total 978,780                                                  1,055,208                                               ‐7.24% Retail 312,840                                                  325,380                                                   ‐3.85% Lodging 708,045                                                  706,070                                                  0.28% F & B 276,436                                                  241,191                                                  14.61% Other 5,490                                                      6,677                                                       ‐17.78% Total 1,302,810                                              1,279,317                                              1.84% Retail 400,022                                                  367,776                                                  8.77% Lodging 723,246                                                  726,890                                                   ‐0.50% F & B 1,839                                                      1,960                                                       ‐6.15% Other 274,043                                                  262,817                                                  4.27% Total 1,399,150                                              1,359,443                                              2.92% Retail 953,750                                                  940,864                                                  1.37% Lodging 1,167,440                                              1,129,094                                              3.40% F & B 1,054,983                                              1,009,643                                              4.49% Other 43,952                                                    48,866                                                     ‐10.06% Total 3,220,125                                              3,128,468                                              2.93% Retail 1,925,751                                              1,915,116                                              0.56% Lodging 3,186,930                                              3,205,109                                               ‐0.57% F & B 1,458,525                                              1,377,513                                              5.88% Other 329,659                                                  324,699                                                  1.53% Total 6,900,866                                              6,822,437                                              1.15% Retail Apparel 439,944                                                  440,168                                                   ‐0.05% Retail Food 259,541                                                  263,259                                                   ‐1.41% Retail Gallery 5,605                                                      9,551                                                       ‐41.32% Retail Gift 9,600                                                      7,666                                                      25.24% Retail Home Occupation ‐                                                          326                                                          ‐100.00% Retail Jewelry 75,062                                                    64,038                                                    17.22% Retail Liquor 80,854                                                    87,030                                                     ‐7.10% Retail Other 277,145                                                  341,840                                                   ‐18.93% Retail Sport 575,018                                                  597,682                                                   ‐3.79% Retail Online Retailer 202,982                                                  103,555                                                  96.01% Total 1,925,751                                              1,915,116                                              0.56% Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review February 4.5% Sales Tax 2025 Collections   2024 Collections YoY % Change 203 AGENDA ITEM NO. 8.1 Item Cover Page DATE:April 1, 2025 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Matters from Mayor, Council, Town Manager and Committee Reports AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee Reports (3:55pm) SUBJECT:Matters from Mayor, Council, and Committee Reports (15 min.) SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 204 AGENDA ITEM NO. 8.2 Item Cover Page DATE:April 1, 2025 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Town Manager Report AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee Reports (3:55pm) SUBJECT:Town Manager Report (5 min.) SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Town Manager's Report 4-01-2025 205 Town Managers Update April 1, 2025 1.Council Strategic Plan A public dashboard sharing progress on the Vail Town Council's 5-Year Strategic Plan will soon be made public. Here is a preview: https://performance.envisio.com/dashboard/vail4398 Once the permanent link is created, the Town Council and the community will be able to track progress in real time. Town staff will be updating the dashboard on a quarterly basis. The strategic plan focuses on five key areas: Create a Strong Community and Create Affordable Housing Opportunities Support our Workforce Provide an Authentic Vail Experience Transportation Environmental Sustainability Since the plan was in adopted in May of 2024, milestones to-date have included: Groundbreaking at Timber Ridge Village which will increase the available housing on the property from 98 to 302 deed-restricted homes and the kick-off of the West Lionshead planning process which will bring a new base area and more locals housing; Creation of a leadership program first within the Town of Vail which could later be provided other employees to support our workforce; Increased efforts to bring the authentic Vail experience to life with DJ sets on the mountain and outdoor concerts featuring major headliners, and completion of a draft strategic plan for a DMO that will implement many of the results related to this goal; Creation of summer parking rate recommendations and improved bus service to further transportation goals; and A grant award of $250,000 toward design of a geothermal network which will connect sources of waste thermal energy to a distribution system that can heat and cool buildings. 2. Annual Report The Town of Vail's 2024 annual report, "Partnerships: Forward, Together" is now available online at www.vail.gov/annualreport. A news release announcing the report, along with a link to the Community Meeting video and pictures will be sent this week. Also, a flyer highlighting the top accomplishments from 2024 and an invitation to view the report will be mailed to every Vail household. 3. Board for West Middle Creek The board for the Vail Home Partners Corporation (West Middle Creek) includes the town’s Deputy Town Manager, Finance Director, Public Works Director, Housing Director and a member of the Vail Local Housing Authority. Since the last meeting Council members expressed interest in having a council representative on this board. We can amend the corporation’s bylaws to include a Council 206 Page 2 member. Would Council like to include a representative and if so who on Council would like to be that representative? 4. Vail Pass Chain Enforcement The Vail Police Department started increased chain law enforcement on March 4. During this time, chain law has been put in place 11 times for an average of 5 hours and 45 minutes for each occurrence. We issued 56 state chain law violations and 26 municipal violations. Of those 82 total chain violations, 73 had chains but did not put them on and 9 had no chains at all. Most of the drivers said that it is worth the risk to not chain up so they can stay on schedule. Some drivers had no idea chain laws existed and others didn’t know how to put chains on. Since starting this enforcement operation, we observed low compliance with chain laws. Even when we are out in full force with 8 to 10 officers, once all the officers are busy on stops, CMV drivers will continue to refuse to chain up and drive by the chain up area without chains. We are estimating that we miss between 8 and 12 trucks during normal chain law enforcement. The new municipal fine of $1,500 seems to be making an impact on some drivers. The biggest impact we have seen is issuing a municipal chain violation along with a state violation for violating a traffic control device. This combination is effective because the chain violation is a large penalty, and the traffic control device puts points on the violators’ license. The increased fine alone does not have the same impact as a fine and points. Other recommendations for improving safety on Vail Pass during winter storm events include: 1) implementing the policy of not allowing commercial vehicles to pass in the left lane on Vail Pass and Dowd Junction; 2) adoption of Senator Robert’s bill SB25-069 that will allow permitted vendors to sell chains and help truckers chain up on the interstate, 3) creation of a new design to improve the safety and capacity of the East Vail chain up station which is budgeted by CDOT in 2025; and 4) supporting the Colorado State Patrol in fully staffing the Eagle, Summit County Troop to help enforce speed and chain laws. We have seen an improvement with the road staying open longer when we aggressively enforce chain law. Unfortunately, the Vail Police Department does not have the manpower to sustain this level of enforcement. 5. Nature Center At the last Council meeting the Town Council indicated majority support for signing a 2025 contract with Walking Mountains to provide summer interpretive services. Consideration of this contract will occur in the evening meeting. In addition, Council asked for a recommendation on how to address future operation and management of the natural and built environment at the Nature Center site. Council also asked that staff evaluate how and to what extent the historical structure could or could not be utilized based on current codes and whether temporary facilities currently on the site can be removed. The Town Manager will request that town staff including the Chief Building Official, Fire Marshal, Building Maintenance Manager and ADA specialist review applicable codes and the current structures at the Nature Center and develop recommendations on how facilities could be utilized this 207 Page 3 summer and into the future in the future while minimizing and/or eliminating temporary facilities such as the yurt. We will present an update on May 20to Town Council. The Town recently adopted the updated the Ford Park Master Plan and created an advisory committee for the park. After technical (code) recommendations are developed for use of the Nature Center and the Town Council provides direction, staff recommends the Ford Park Advisory Committee be utilized to develop recommendations for any enhancements of the natural environment in the area; and programmatic recommendations for the facilities at and around the Nature Center. Staff would also recommend that other stakeholders with an interest in this topic be invited to provide feedback to the Ford Park Advisory Committee. Recommendations on the use of the site and facility would be provided to the Town Council no later than January of 2026. 6. Hard-to-Recycle Event Vail’s annual Hard-To-Recycle Event will be held from 10 a.m. to 3 p.m. on May 9 at Ford Park. The town will accept: electronics waste (computers, tv’s, printers, etc.) household hazardous waste (paint, motor oil, household chemicals, etc.) tires (max 4 per person) scrap metal (no large appliances) paper shredding soft plastics clean/block Styrofoam yard waste to be composted vinyl event banners outdoor gear that is in usable condition Note that there is only one HTR event this year. We will not be accepting fire extinguishers, smoke alarms, carbon monoxide detectors, large appliances, anything with refrigerant, climbing gear or helmets. The hard to recycle event is free to residents, employees and business owners in Vail and funded through bag fees collected in Vail. All event details can be found at www.lovevail.org. 7. Economic Update Last week, staff met with Dr. Wobbekind, Associate Dean for Business Relations and Senior Economist at the University of Colorado, who is widely recognized for his expertise in regional economic analysis and forecasting. During the meeting, he provided an economic update, noting that Colorado’s economy has slowed significantly. Once ranked among the top 10 fastest-growing economies in the U.S., the state now falls between 25th and 30th nationwide. Dr. Wobbekind highlighted that employment growth is slowing both in Colorado and across the country, and economic indicators suggest the possibility of a mild recession. Tariffs have contributed to inflationary pressures, but national job growth remains positive. As a result, the Federal Reserve has maintained its expectation of two interest rate cuts this year. However, he cautioned that construction costs will likely continue rising due to inflation and tariffs, while interest rates may decrease only slightly, if at all, in the coming year. 208 Page 4 Overall, the slowing economy could signal a mild recession in the near future. Dr. Wobbekind advised monitoring shifts in visitor demographics and maintaining conservative revenue forecasts, as potential changes in federal policies may impact travel patterns. 8. Other There may be other topics the Town Manager needs to share with the Town Council. 209 AGENDA ITEM NO. 8.3 Item Cover Page DATE:April 1, 2025 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Town Manager Report AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee Reports (3:55pm) SUBJECT:Council Matters and Status Report SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Matters 4-01-2025 210 COUNCIL MATTERS Status Report Report for April 1,2025 Comments from the March 18 Town Council meeting during “Matters”: Town Council thanked the Colorado Snowsports Museum for the Ravinos story! Town Council inquired about CarShare programs to ensure a service is in place before the first Timber Ridge homes are moving in. Social Media Listening Here is the Sprout link for 3/12 -3/26: https://share.sproutsocial.com/view/a9a0257e-d698-448c-a025-7ed698848c13 We saw a lot of positive posts around March powder days and coverage of the chain law discussion. Sprout also helps us to monitor spikes in mentions, including this developing story: https://share.sproutsocial.com/view/34946b87-766f-4c7e-946b- 87766f2c7ec9 For your awareness, this post gives insight into potential messaging needs around paid summer parking: https://www.facebook.com/share/p/1FCmCPPHMt/?mibextid=wwXIfr In the News______________________________________________________ March 14 Polis Open to Increased Fines https://www.vaildaily.com/news/i70-chain-law-trucker-fines-gov-jared-polis/ https://www.summitdaily.com/news/i70-chain-law-trucker-fines-gov-jared-polis/ Habitat Partnerships -Valley Voices https://www.vaildaily.com/opinion/kenney-williams-building-a-stronger-valley-together/ March 17 Consideration of Chain Law Ordinance https://www.vaildaily.com/news/vail-pass-ordinance-stiffens-fines-truckers-chain-laws/ 211 Truck by Train https://www.realvail.com/train-conductor-who-revived-ski-train-wants-to-fix-i-70-for-snow- riders/a21684/ https://kdvr.com/news/local/retired-longtime-amtrak-conductor-shares-plan-to-help-congestion- on-i-70/ March 18 Annual Community Meeting https://www.realvail.com/community-invited-to-vails-annual-town-meeting-on-march-25/a21721/ Approved Chain Law Ordinance https://www.cpr.org/2025/03/19/vail-chain-law-violators-new-steep-fines/ https://www.9news.com/video/news/local/colorado-news/vail-town-council-approves-new-chain- ordinance/73-a2b319ad-4a12-4376-a3ec-681db1ccaf08 March 20 PEC Openings https://www.realvail.com/vail-residents-needed-to-serve-on-planning-and-environmental- commission/a21758/ Front Country Rangers https://www.vaildaily.com/news/eagle-county-local-towns-contribute-160000-to-continue-front- country-ranger-program-in-2025/ March 21 Approved Chain Law Ordinance https://coloradosun.com/2025/03/21/i70-closures-vail-fines/ https://www.vaildaily.com/news/police-driver-who-blocked-i-70-in-vail-will-not-receive-new-2650- fine/ https://www.montrosepress.com/news/vail-imposes-its-own-fine-on-unchained-vehicles-amid-a- surge-in-i-70-closures/article_bf4ccafc-1e33-40e4-92cc-54f0f55e9494.html https://cdllife.com/2025/long-time-coming-vail-passes-2650-fine-for-unchained-truckers-that- spin-out-on-i-70/ PEC Openings https://www.vaildaily.com/news/vail-seeks-community-members-to-serve-on-planning-and- environmental-commission/ Truck by Train https://www.denver7.com/news/local-news/truck-train-former-amtrak-conductor-shares-plans-to- reduce-semi-truck-traffic-on-i-70 March 24 Annual Community Meeting https://www.vaildaily.com/news/vail-invites-community-to-annual-town-meeting-on-tuesday/ U.S. Alpine Nationals in Vail https://www.realvail.com/vail-to-host-2025-u-s-alpine-national-championships-starting- saturday/a21790/ 212 March 25 Approved Chain Law Ordinance https://www.youtube.com/watch?v=vAqWTUDj1e8 March 26 Summer Parking https://www.vaildaily.com/news/vail-to-consider-2-per-hour-summer-parking-fees-at-vail- lionshead-structures/ U.S. Alpine National Championships in Vail https://www.vaildaily.com/news/us-alpine-championships-vail/ Upcoming Dates April 18 End of Season Community Event May 9 Hard to Recycle Event June 24 Board & Commissions Appreciation Night at Ford Park Amphitheater Hot Summer Nights September 9 Vail Social! 213