Loading...
HomeMy WebLinkAbout2025-05-05 Agenda and Supporting Documentation Town Council Special Meeting1.Call to Order 2.Information Update (4:00pm) 2.1 April 2025 Revenue Update 2.2 Vail Economic Outlook Report 3.Presentation/Discussion (4:15pm) 3.1 West Middle Creek Project Overview and Community Impacts Listen to presentation and provide feedback. Presenter(s): Russ Forrest, Town Manager, Jason Dietz, Housing Director, and Eric Komppa, Corum Real Estate Group Background: Council will receive latest information on the West Middle Creek project, including community impacts in the early stages. 4.Action Items (4:35pm) 4.1 West Middle Creek Financing Update and Decision Listen to presentation and provide staff with direction on proceeding with financing of West Middle Creek project. Presenter(s): Russ Forrest, Town Manager Background: The purpose of this presentation is to provide Council with a final update on the project, the financing structure based on current interest rates, and equity contribution options. Staff is requesting final approval from Council before proceeding with the bond sale on Tuesday, May 6. 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_upGCOuzWQ2OPYND3Bt2wMQ 4:00 PM, May 5, 2025 Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Council will consider an item. Revenue Update 5-05-2025 Vail Economic Outlook 5-05-2025 Council Memo - West Middle Creek Updates Staff Presentation - Corum West Middle Creek Updates West Middle Creek Final Financing Update 5-05-2025 Staff Presentation - West Middle Creek Update 1 5.Adjourn Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vail.gov. All Town Council meetings will be streamed live by High Five Access Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five Access Media website the week following meeting day, www.highfivemedia.org. Please call 970-479-2460 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. 2 AGENDA ITEM NO. 2.1 Item Cover Page DATE:May 5, 2025 SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Information Update AGENDA SECTION:Information Update (4:00pm) SUBJECT:April 2025 Revenue Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Revenue Update 5-05-2025 3 1 TOWN OF VAIL REVENUE UPDATE May 6, 2025 4.0% General Sales Tax Upon receipt of all sales tax returns, March 2025 collections are estimated to be $6,240,553, down (2.7)% from 2024 and up 1.3% from the budget. In-town businesses were collectively down (7.1)%, however sales of products delivered into Vail by out-of-town retailers partially offset these decreases. Historically, the timing of the Easter holiday has influenced sales tax collections for the months of March and April. In 2024, Easter fell on March 31, which led to increased visitation and a corresponding rise in March sales tax collections, followed by a decline in April collections compared to 2023. In 2025, Easter fell on April 20, which may have shifted visitation later in the season, potentially increasing April collections compared to the prior year, offsetting the decrease in March collections. 2025 YTD collections of $18,427,693 are up 0.7% from 2024 and up 2.3% from the budget. In town businesses are collectively down 1.6% however sales of products delivered into Vail by out of town retailers have offset these decreases resulting in an increase of overall sales tax collections compared to prior year. Inflation as measured by the consumer price index was up 2.4% for the 12-months ending March 2025. The annual budget totals $42.1 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, March 2025 collections of the 0.5% housing sales tax are estimated to be $762,323, down (2.7)% from 2024 and down (1.0)% from the budget. 2025 YTD collections of $2,246,526 are up 0.8% from 2024 and up 0.5% from the budget. The annual budget for the housing fund sales tax totals $5.2 million. Real Estate Transfer Tax (RETT) RETT collections through April 28 total $2,783,850, down (10.8)% from 2024. The number of property sales (excluding time-shares) is tracking down (32.6)% from 2024, while the average collection is tracking up 32.5%. The budget for RETT collections totals $7.7 million for 2025. Construction Use Tax Use Tax collections through April 28 total $543,195 compared to $495,237 in 2024. The budget totals $2.5 million for 2025. Lift Tax Lift tax collections for March 2025 total $4,614,362, up 0.6% or $28,866 from March 2024. The budget totals $6,915,427. 4 2 Daily Parking Sales Daily sales from the parking structures from November through April (end of ski season) total approximately $7,263,390, down (3.3)% from time last year. This amount includes daily fees charged to the parking pass holders. Parking Pass Sales Parking pass sale revenue through for the 2024/2025 winter season totaled $1,233,219, up 7.9% or $90,763 from the 2023/2024 winter season. 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 4,550 passes have been sold this season compared to the 4,536 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 $(19,287) or (1.6)% from the prior season. Pass Type 2024/25 Season Sales 2023/24 Season Sales 2023/24 Auto- Renewed Passes Utilized Total 2023/24 Pass Sales/Utilized Change from prior season Premier 21 25 - 25 (4) Vail Village Business Premier 69 60 - 60 9 Lionshead Business Premier 7 5 - 3 2 Employee 488 427 - 427 61 Employee Plus 330 351 - 351 (21) Eagle County Local 1,924 397 1,489 1,886 38 Vail Local 1,711 358 1,424 1,782 (71) Total 4,550 1,623 2,913 4,536 14 5 2025 Budget % change % change 2020 2021 2022 2023 2024 Budget Variance from 2024 from Budget January 4,076,145$ 3,422,209$ 5,217,125$ 5,911,572$ 5,805,199$ 5,791,927$ 5,938,394$ 146,467$ 2.29%2.53% February 4,285,633 3,691,850 5,686,585 6,041,108 6,080,349 6,063,693 6,248,745 185,052 2.77%3.05% March 2,243,518 4,364,797 5,912,059 6,055,992 6,412,535 6,162,148 6,240,553 78,405 -2.68%1.27% YTD 10,605,296$ 11,478,857$ 16,815,769$ 18,008,672$ 18,298,082$ 18,017,768$ 18,427,693$ 409,925$ 0.71%2.28% 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 2,361,482 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 2,415,397 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 5,811,950 5,789,893 5,776,237 - Total 24,973,411$ 34,534,683$ 40,776,882$ 42,002,933$ 42,177,661$ 42,064,000$ 18,427,693$ 409,925$ 0.71%2.28% 2025 Budget % change % change 2022 2023 2024 Budget Variance from 2024 from Budget January 645,487$ 720,906$ 705,167$ 711,525$ 722,775$ 11,250$ 2.50%1.58% February 702,730 736,788 741,549 753,337 761,428 8,091 2.68%1.07% March 719,717 738,244 783,123 769,644 762,323 (7,321) -2.66%-0.95% YTD 2,067,934$ 2,195,938$ 2,229,839$ 2,234,506$ 2,246,526$ 12,020$ 0.75%0.54% 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 671,982 703,050 699,750 712,030 - Total 4,954,459$ 5,090,828$ 5,110,322$ 5,201,534$ 2,246,526$ 12,020$ 0.75%0.54% Town of Vail Revenue Update May 6, 2025 4.0% GENERAL SALES TAX2025 Budget Comparison Actual 4.0% Collections 0.5% HOUSING SALES TAX2025 Budget Comparison 4.0% Collected Sales Tax Actual 0.5% Collections 0.5% Collected Sales Tax 6 Through March 31 March 4% General Sales Tax Collections By Year Through March 31 Town of Vail Revenue Update YTD 4% General Sales Tax Collections By Year May 6, 2025 •March collections of $6,240,553 are down (2.7%) from prior year and are up 1.3% from the budget. $4,364,797 $5,912,059 $6,055,992 $6,412,535 $6,240,553 $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 $11,478,857 $16,815,769 $18,008,672 $18,298,082 $18,427,693 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2021 2022 2023 2024 2025 •YTD collections of $18,427,693 are up 0.7% from prior year and are up 2.3% from the budget. •Inflation as measured by the consumer price index was up 2.4% for the 12-months ending March 2025. 7 March Collections YTD Collections Town of Vail Revenue Update May 6, 2025 March 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through April 2025 •This chart shows YTD collections of 1% RETT, segmented by real property values. 2025 collections are down (10.8)% from the prior year. $2,849,638 $2,816,126 $1,897,504 $3,119,761 $2,783,850 $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 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million •March collections of $762,323 are down (2.7%) from prior year and are down (1.0%) from the budget. YTD collections of $2,246,526 are up 0.8% from this time last year and are up 0.5% from the budget. $719,717 $738,244 $783,123 $762,323 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2022 2023 2024 2025 $2,067,934 $2,195,938 $2,229,839 $2,246,526 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2022 2023 2024 2025 8 Town of Vail Revenue Update May 6, 2025 Construction Use Tax by Year YTD Through April 2025 YTD Lift Tax Collections YTD Through March 2025 •Use Tax collections through April 28 total $543,195 compared to $495,237 from this time last year. This is an increase of 9.7%. $1,212,991 $599,518 $695,078 $495,237 $543,195 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2021 2022 2023 2024 2025 •2025 YTD lift tax collections of $4,614,362 are up 0.6% or $28,866 from the same time last year. $3,669,127 $4,285,902 $4,265,597 $4,585,496 $4,614,362 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2021 2022 2023 2024 2025 9 Vail Business Review March and Q1 2025 May 6, 2025 The Vail Business Review breaks down the 4.5% sales tax collected for the month of March and the first quarter of 2025. 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. March 4.5% sales tax was down (2.8)% from the prior year. Retail increased 2.0%, lodging decreased (7.2)%, food and beverage decreased (2.6)%, and utilities/other increased 9.7%. Excluding the out-of-town category, sales tax for the month of March was down (7.1)% compared to prior year. Q1 4.5% sales tax was up 0.7% from the prior year. Retail increased 2.1%, lodging decreased (1.5)%, food and beverage increased 3.6%, and utilities/other increased 1.4%. Excluding the out-of-town category, sales tax for the Q1 was down (1.6)% compared to Q1 of the 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 10 March 2024 Sales Tax Collections by Business Type March 2025 Town of Vail Business Review March Sales Tax Collections by Year March 2025 Sales Tax 2,230,803 Lodging 2,983,939 Food & Beverage 1,459,937 Utilities & Other 327,361 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 2.0% (2.6)%9.7% Retail 4,365,341 6,636,355 6,790,224 7,199,895 7,002,040 $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 • March 2025 retail sales increased 2.0%, lodging decreased (7.2)%, food and beverage decreased (2.6)%, and utilities and other increased 9.7%. • The figures above reflect 4.5% sales tax. Retail 2,186,649 Lodging 3,215,899 Food & Beverage 1,498,977 Utilities & Other 298,370 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 (7.2)% • 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 March 2024 collections were $7,199,895; March 2025 collections were $7,002,040, down from the prior year (2.8)%. 11 March 2025 Sales Tax Town of Vail Business Review March 2024March 2025 Geographic Area Trends by Year March Sales Tax Sales Tax by Location Other Areas 14% Lionshead 19% Out of Town 19% Vail Village 48% • Vail Village sales tax decreased (5.8)%, Lionshead decreased (9.2)%, Other Areas decreased (8.8)%, and Out of Town increased 16.0%. Excluding Out of Town collections, all areas were down (7.1)%. • The figures above reflect 4.5% sales tax. 598,176 975,654 852,756 1,237,376 960,417 1,350,873 1,953,991 3,072,453 $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 3,078,9191,475,020 1,269,657966,627 • This chart shows March 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. 1,001,527 1,363,699 1,365,190 3,469,479 3,267,037 1,238,273 1,583,562 913,168 Other Areas 13% Lionshead 18% Out of Town 22% Vail Village 47% 12 Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail March 2025 Sales Tax Town of Vail Business Review Apparel $519,257 Grocery $240,511 Gallery $10,021 Gifts $12,892 Jewelry $93,857 Retail Liquor $74,850 Retail Other $538,644 Sporting Goods $609,969 Online Retailers $130,652 Retail Home Occupation $151 • March 2025 accommodations services decreased (7.2)% from the prior year. Short-term rentals decreased (8.1)% and hotels and lodges decreased (6.8)%. •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 that advertise and rent properties on these platforms. 2,165,596 914,786 2,237,805 978,094 2,084,989 898,951 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Hotel and Lodges Short-Term Rentals 2025 2024 2023 13 Retail 250,983                                                  283,679                                                   ‐11.53% Lodging 527,531                                                  546,291                                                   ‐3.43% F & B 127,134                                                  166,150                                                   ‐23.48% Other 7,520                                                      5,407                                                      39.09% Total 913,168                                                  1,001,527                                               ‐8.82% Retail 320,979                                                  368,232                                                   ‐12.83% Lodging 658,921                                                  737,640                                                   ‐10.67% F & B 254,598                                                  253,166                                                  0.57% Other 3,775                                                      4,661                                                       ‐19.00% Total 1,238,273                                              1,363,699                                               ‐9.20% Retail 588,659                                                  402,437                                                  46.27% Lodging 717,866                                                  724,616                                                   ‐0.93% F & B 2,948                                                      3,530                                                       ‐16.49% Other 274,088                                                  234,608                                                  16.83% Total 1,583,562                                              1,365,190                                              16.00% Retail 1,070,181                                              1,132,301                                               ‐5.49% Lodging 1,079,621                                              1,207,352                                               ‐10.58% F & B 1,075,258                                              1,076,131                                               ‐0.08% Other 41,978                                                    53,694                                                     ‐21.82% Total 3,267,037                                              3,469,479                                               ‐5.83% Retail 2,230,803                                              2,186,649                                              2.02% Lodging 2,983,939                                              3,215,899                                               ‐7.21% F & B 1,459,937                                              1,498,977                                               ‐2.60% Other 327,361                                                  298,370                                                  9.72% Total 7,002,040                                              7,199,895                                               ‐2.75% Retail Apparel 519,257                                                  503,106                                                  3.21% Retail Food 240,511                                                  267,202                                                   ‐9.99% Retail Gallery 10,021                                                    19,909                                                     ‐49.67% Retail Gift 12,892                                                    8,938                                                      44.23% Retail Home Occupation 151                                                         326                                                          ‐53.77% Retail Jewelry 93,857                                                    90,768                                                    3.40% Retail Liquor 74,850                                                    88,102                                                     ‐15.04% Retail Other 538,644                                                  354,207                                                  52.07% Retail Sport 609,969                                                  738,377                                                   ‐17.39% Retail Online Retailer 130,652                                                  115,713                                                  12.91% Total 2,230,803                                              2,186,649                                              2.02% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review March 4.5% Sales Tax 2025 Collections   2024 Collections YoY % Change Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary 14 Q1 2024 Sales Tax Collections by Business Type Q1 2025 Town of Vail Business Review Q1 Sales Tax Collections by Year Q1 2025 Sales Tax 6,141,795 Lodging 9,221,788 Food & Beverage 4,303,904 Utilities & Other 1,004,017 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2.1% 3.6%1.4% Retail 11,472,026 18,906,661 20,178,089 20,519,875 20,671,505 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2021 2022 2023 2024 2025 General Sales Tax Housing Sales Tax • Q1 2025 retail sales increased 2.1%, lodging decreased (1.5)%, food and beverage increased 3.6%, and utilities and other increased 1.4%. • The figures above reflect 4.5% sales tax. Retail 6,013,114 Lodging 9,362,518 Food & Beverage 4,153,565 Utilities & Other 990,678 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 (1.5)% • 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 Q1 2024 collections were $20,519,875; Q1 2025 collections were $20,671,505, up from the prior year 0.7%. 15 Q1 2025 Sales Tax Town of Vail Business Review Q1 2024Q1 2025 Geographic Area Trends by Year Q1 Sales Tax Sales Tax by Location Other Areas 15% Lionshead 19% Out of Town 20% Vail Village 46% • Vail Village sales tax remained flat, Lionshead decreased (4.3)%, Other Areas decreased (3.4)%, and Out of Town increased 9.9%. Excluding Out of Town collections, all areas were down (1.6)%. • The figures above reflect 4.5% sales tax. 1,632,130 2,781,520 2,110,900 3,553,429 2,722,034 4,076,767 5,006,961 8,494,945 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 2021 2022 2023 2024 2025 Vail Village Out of Town Lionshead Other Areas 9,141,0794,392,607 3,829,4952,814,907 • This chart shows Q1 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. 2,971,138 3,942,807 4,146,560 9,459,370 9,471,447 3,773,146 4,556,764 2,870,149 Other Areas 14% Lionshead 18% Out of Town 22% Vail Village 46% 16 Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail Q1 2025 Sales Tax Town of Vail Business Review Apparel $1,402,488 Grocery $750,152 Gallery $32,544 Gifts $34,168 Jewelry $263,175Retail Liquor $216,115 Retail Other $1,235,293 Sporting Goods $1,761,922 Online Retailers $445,486 Retail Home Occupation $453 • Q1 2025 accommodations services decreased (1.5)% from the prior year. Short-term rentals decreased (2.7)%and hotels and lodges decreased (1.0)%. •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 that advertise and rent properties on these platforms. 6,369,010 2,815,365 6,558,722 2,803,796 6,494,619 2,727,169 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Hotel and Lodges Short-Term Rentals 2025 2024 2023 17 Retail 768,403 875,444 ‐12.23% Lodging 1,684,889 1,674,626 0.61% F & B 396,928 405,496 ‐2.11% Other 19,930 15,571 27.99% Total 2,870,149 2,971,138 ‐3.40% Retail 944,174 1,010,242 ‐6.54% Lodging 2,031,952 2,117,231 ‐4.03% F & B 778,374 746,147 4.32% Other 18,646 69,186 ‐73.05% Total 3,773,146 3,942,807 ‐4.30% Retail 1,470,628 1,163,484 26.40% Lodging 2,231,260 2,207,039 1.10% F & B 10,134 8,054 25.83% Other 844,742 767,984 9.99% Total 4,556,764 4,146,560 9.89% Retail 2,958,591 2,963,943 ‐0.18% Lodging 3,273,688 3,363,622 ‐2.67% F & B 3,118,469 2,993,868 4.16% Other 120,700 137,937 ‐12.50% Total 9,471,447 9,459,370 0.13% Retail 6,141,795 6,013,114 2.14% Lodging 9,221,788 9,362,518 ‐1.50% F & B 4,303,904 4,153,565 3.62% Other 1,004,017 990,678 1.35% Total 20,671,505 20,519,875 0.74% Retail Apparel 1,402,488 1,361,691 3.00% Retail Food 750,152 818,349 ‐8.33% Retail Gallery 32,544 37,471 ‐13.15% Retail Gift 34,168 25,772 32.58% Retail Home Occupation 453 979 ‐53.77% Retail Jewelry 263,175 213,551 23.24% Retail Liquor 216,115 254,071 ‐14.94% Retail Other 1,235,293 1,048,295 17.84% Retail Sport 1,761,922 1,915,996 ‐8.04% Retail Online Retailer 445,486 336,939 32.22% Total 6,141,795 6,013,114 2.14% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review Q1 4.5% Sales Tax 2025 Collections   2024 Collections YoY % Change Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary 18 AGENDA ITEM NO. 2.2 Item Cover Page DATE:May 5, 2025 SUBMITTED BY:Liz Gladitch, Economic Development ITEM TYPE:Information Update AGENDA SECTION:Information Update (4:00pm) SUBJECT:Vail Economic Outlook Report SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Vail Economic Outlook 5-05-2025 19 ECONOMIC OUTLOOK Discover Vail Destination Marketing Organization May 5, 2025 20 Macro Economic Trends Markets are under pressure from trade policy shifts and inflation concerns. Consumer confidence is at a near-record low, pointing to reduced discretionary spending—including travel. Western & Luxury Travel Trends Western travelers remain financially optimistic with higher budgets and strong travel intent. Luxury travel is holding steady despite economic headwinds, though shorter stays and last-minute bookings are becoming more common. Vail Trends Vail is slightly ahead of industry benchmarks but faces sustainability concerns as inflation may outpace revenue growth. Strengths include brand loyalty and affluent clientele; key risks include price sensitivity and economic uncertainty. Economic Outlook Funnel Macro Economic Trends Western & Luxury Travel Trends Vail Trends Executive Summary 21 MACRO ECONOMICS 22 6 Month Market Conditions Mostly Consumer Negative 23 Economic Considerations ●Financial Markets are reacting poorly to the reshaping of global trade policy. Fears around inflation and a lack of confidence in the stability of US Treasuries are forcing markets down. Declining markets impact consumer savings and discretionary spending, including on travel. ●Inflation declined in March to 2.4%, the lowest since March ‘21. Meanwhile, prices continued to rise, up 0.4% from February. While lower inflation can help consumers’ economic perception, the monthly increase is where the reality of costs live. Inflations is expected to increase in the months ahead as tariffs trickle down to consumers. 24 Economic Considerations ●Consumer Confidence & Sentiment: Consumer Sentiment fell to a near-historic low in April and Consumer Confidence, already well below 100, is expected to follow suit in April. Declines in both are coming from all demographic profiles and political affiliations. Declining Confidence and Sentiment are leading indicators of slower travel spend, rate sensitivity, and revenue challenges, all of which destinations should anticipate for the foreseeable future. ●Overall: Economic uncertainty will likely persist for months, if not years, and already-nervous consumers will likely pull back as they adjust to what may now be unavoidable new economic realities. 25 American Traveler Sentiment Strong Signals of Intent & Interest in Travel ●Travel intent remains incredibly strong with 94% of Americans planning to take a trip in the next six months - a +6% increase from February 2025 1 ●The average number of expected leisure trips (12 months) is at a 5-year high or 4.0 2 ●Expected travel budget is near an all-time high - $1,500 higher than the 3-year average 2 1 American Travel Sentiment Study: Wave 96 2 Destination Decisions Webinar 26 American Traveler Sentiment However, economic headwinds remain top of mind ●Inflation (55%) and personal financial situation (55%) are rising concerns for U.S. travelers but have not risen meaningfully since early March 2025 1 ●Only 46% of U.S. travelers believe they will be better off financially in six months 2 1 American Travel Sentiment Study: Wave 96 2 Destination Decisions Webinar 27 TRAVEL TRENDS 28 State of the Western U.S. Traveler (Our Customer) Who is the Western Traveler? This segment is defined as travelers who have visited or traveled within the state(s) of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Texas, Utah, Washington, or Wyoming in the past 12 months. 3 A Profile of Western US Travelers 29 State of the Western U.S. Traveler Western Travelers Economic Outlook ●These travelers are more financially optimistic, with 38.7% reporting better financial situations compared to a year ago 3 ●They have bigger budgets ($6,454 annually vs. $5,030 national average) 3 ●Compressed booking windows - 41.6% said they will begin planning within 8 weeks of a domestic leisure trip 3 ●67% of Western U.S. travelers have leisure travel as a budget priority over the next 3-months compared to the U.S. average of 58% 3 3 A Profile of Western US Travelers 30 State of the Western U.S. Traveler Travel Behavior & Barriers ●Travel being too expensive and personal financial reasons rank highly as barrier but less so for this segment versus the U.S average ●In the past 12 months, for those seeking mountain destinations, 40% have stayed in luxury or 5-star resorts compared to 21% of the U.S. population 3 A Profile of Western US Travelers 31 Projected Length of Stay to Shorten ●We expect length of stay (LOS) to decline across the industry as guests look to continue to travel while being more rate sensitive due to rising inflation & financial market instability. ●Luxury markets may have some immunity from this as they enjoy a clientele that is somewhat insulated from market turmoil. 32 The Luxury Advantage Luxury properties have driven the modest increases in both rate and revenue across mountain resorts for most of the past six months as wealthier consumers remain more insulated from the day-to-day impacts of economic uncertainty. This is an extension of patterns that repeat themselves during periods of economic stress (the Great Recession, the slow-down in 2016, and the immediate post-pandemic). While moderate and economy properties leveled the playing field in 2023/24, they have pulled back in the past 12 months. 33 VAIL TRENDS 34 Summer vs Industry: A Few Power Months Drive Gain Occupancy ADR Vail +1%+5% Industry -0.3%+4% While Vail is pacing well, the inconsistency indicates overall demand uncertainty 35 Room Revenue Sustainability Challenge Ahead Assuming a best-case scenario of: ●Consumers do not pull back further, RevPAR sustains the avg 2.8% growth rate of the past twelve months, and Inflation and Wage growth follow economists’ projections ●Vail properties may find it challenging to keep ahead of inflation. Though this situation is true of the overall industry as well as the CO subset, Vail properties will have a slightly harder time, largely the result of rate sensitivity in a destination with fewer low-price alternatives, forcing rate down, suppressing bookings, or both. 36 Executive Summary: Vail Strengths ●Brand recognition, loyalty ●Excellent town plan and proactive approach ●High quality destination product ●Urban proximity ●Near-direct air ●Clientele has financial resilience Weaknesses ●Moderate/Economy Lodging “shared” with other destinations, limiting consumer variety ●Reputationally expensive ●Further from urban market than less $ options Opportunities ●Pre-emptively tapping the Mexican market ●Rate Wins: adjusting ADR to sensitivities ●Lead time: Lock in longer-lead clientele early Threats ●Sustained economic headwinds force rate down, even with affluent clientele ●Long-term underperformance vs inflation ●Changes to forest use regulation ●Weather (always) 37 DISCOVER VAIL SUMMER CONTINGENCY PLAN 38 A targeted initiative to drive May - June occupancy through Colorado-based travel. This is a test to see if we can increase close in bookings for a specific need period. Campaign Timing: May 9 - June 28 Objective: ●Increase in-state bookings by offering exclusive locals-only packages and incentives ●Complementary of our existing summer marketing efforts. Target Audience: ●Front Range (Denver, Boulder, Fort Collins, Colorado Springs) ●Weekend travelers, families, couples, outdoor enthusiasts Budget: $50,605 In-State Early Summer Boost Campaign 39 THANK YOU 40 APPENDIX 41 Sources A Profile of Western US Travelers, Future Partners, April 2025 ●Data included in this study was collected each month throughout the calendar year of 2024. In total, 49,233 completed surveys were collected, indicating that the results presented here have a confidence interval of +/- 1.6%. The subsample of Western U.S. travelers was n= 21,470. ●Western Travelers are defined as Western U.S. Travelers as travelers who have visited or traveled within the state(s) of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Texas, Utah, Washington, or Wyoming in the past 12 months. American Travel Sentiment Study: Wave 96, Longwoods International, April 2025 ●Key Details: ○Survey Date: April 1, 2025 ○Sample Size: 1,000 U.S. adults (18+) ○Margin of Error: ±3% ○Representative of U.S. population demographics (age, gender, region) ●Travelers are only respondents that have taken a trip in the last 3 years and intend to take a trip in the next 2 year Destination Decisions Webinar, Future Partners, March 2025 ●Representative sample of adult American travelers in each of four U.S. regions ●Tracks traveler sentiment to generate insights into domestic travel trends ●Survey collected: February 15-22 ●4,000+ fully completed surveys collected each wave ●Confidence interval of +/- 1.55% ●Data is weighted to reflect the actual population of each region 42 Group: Meetings, Incentives, Conferences, Exhibitions According to the latest Northstar/Cvent Meetings Industry PULSE Report, Group planners are less optimistic. The main driver of this shift is the economic outlook, with almost two-thirds citing it as the number one negative factor affecting their meetings and events. Expectations for in-person attendance have also dipped. In spite of that, nearly 70% of planners still say their primary focus is booking new events and actively sourcing. Here are three key findings in the March 2025 report: ●Key Finding #1: Planner confidence dips amid policy shifts and economic concerns ●Key Finding #2: Despite challenges, DEI commitment, the value of face-to-face events, and sourcing volume remain strong ●Key Finding #3: Planners predict lower attendance amid global travel hesitations 3 A Profile of Western US Travelers 43 Concerning Consumer Confidence Numbers After its 5th consecutive decline and now at 86.0 points, confidence is at its lowest since May 2020, and prior to that, May 2014. 44 Another Related Article A Cyclical Slowdown or Travel Armageddon? 45 AGENDA ITEM NO. 3.1 Item Cover Page DATE:May 5, 2025 SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion (4:15pm) SUBJECT:West Middle Creek Project Overview and Community Impacts SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Russ Forrest, Town Manager, Jason Dietz, Housing Director, and Eric Komppa, Corum Real Estate Group VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Memo - West Middle Creek Updates Staff Presentation - Corum West Middle Creek Updates 46 75 South Frontage Road West Housing Department Vail, Colorado 81657 970.479.2150 vailgov.com MEMORANDUM To: Vail Town Council From:Jason Dietz, Housing Director Date: May 5, 2025 Re: West Middle Creek Presentation and Staging Memo I.Summary The WMC staging presentation is to provide a brief recap of the project showing exterior renderings, building layout, elevations, floorplans and access. Additionally, Corum and Shaw will present the current earthwork, staging, and traffic control plan that that is being submitted for the initial phases of construction expected to happen this summer. Staff, Corum and Shaw will be available for feedback, questions and comments. 47 Overview of Presentations •West Middle Creek Project/Construction Management •Economic Forecast •Project Financing •Summary 48 WEST MIDDLE CREEK UPDATE WEST MIDDLE CREEK49 WEST MIDDLE CREEK50 WEST MIDDLE CREEK51 WEST MIDDLE CREEK52 WEST MIDDLE CREEK53 LANDSCAPE PLANNING WEST MIDDLE CREEK54 AMENITIES WEST MIDDLE CREEK Lobby Lounge Entry Lobbies Package RoomLeasing Office EXAMPLE IMAGES LEVEL 1 AMENITIES 55 AMENITIES WEST MIDDLE CREEK Fitness Club Room EXAMPLE IMAGES LEVEL 2 AMENITIES Co-Working 56 TYPICAL FLOORPLANS WEST MIDDLE CREEK STUDIO ONE BED TWO BED 57 TYPICAL FLOORPLANS – REVISED WEST MIDDLE CREEK ORIGINAL – DOUBLE OCCUPANCY TWO BEDREVISED – TRADITIONAL OCCUPANCY 58 BRANDING IDEAS?WEST MIDDLE CREEK Branding Ideas: •Mountainside •The Steeps •Headwall / Sidewall •Traverse - •Cirque •South Face •Landing / Eagle’s Landing 59 AGENDA ITEM NO. 4.1 Item Cover Page DATE:May 5, 2025 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Action Items AGENDA SECTION:Action Items (4:35pm) SUBJECT:West Middle Creek Financing Update and Decision SUGGESTED ACTION:Listen to presentation and provide staff with direction on proceeding with financing of West Middle Creek project. PRESENTER(S):Russ Forrest, Town Manager VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: West Middle Creek Final Financing Update 5-05-2025 Staff Presentation - West Middle Creek Update 60 TO:Vail Town Council FROM:Finance Department DATE:May 5, 2025 SUBJECT: West Middle Creek Update and Final Decision I.SUMMARY Since the April 17th Council meeting, the Preliminary Official Statement for the Town COPS and the Preliminary Limited Offering Statement for the housing revenue bonds have been published, and Piper Sandler has begun marketing the bonds to investors. Over the past several weeks, the market also appears to have stabilized for now. The purpose of this special meeting is to provide Council with a final update on the project, the financing structure based on current interest rates, and equity contribution options. Staff is requesting final approval from Council before proceeding with the bond sale on Tuesday, May 6. II.BACKGROUND On April 17th Council approved an emergency ordinance, authorizing the town to issue Certificates of Participation (COPs) in an amount not to exceed $85.5M, previously at $65.5M. Due to volatile market conditions and interest rate movement, the financial pricing fluctuated between being in excess or very close to the parameters set by the Town in Ordinance No.5 and impacting the ability to move forward with the project. Increasing the parameters allows the Council more flexibility to move forward with the project. On April 3rd, the newly formed Vail Home Partners authorized the issuance of Housing Revenue Bonds (HRBs) not to exceed $145.0M. While neither approval commits the town to issuing the COPs or HRBs, the authorizations came with specific parameters of debt levels. The current ordinances and resolutions allow the town and Vail Home Partners to issue debt for the West Middle Creek project within the following parameters: CURRENT PARAMETERS Town Certificates Of Participation (COPs) – 40 year Vail Home Partners Housing Revenue Bonds – 40 year Up to $85.5M Up to $145.0M Interest rate not to exceed 7.8% ($129.5M total interest cost over life) Interest rate not to exceed 7.5% ($129.5M total interest cost over life) Annual debt service not to exceed $10.75M Annual debt service not to exceed $35.0M Up front investment $10M 61 Town of Vail Page 2 Subsidy of $17.9M in first 11 years to cover debt service payments The above parameters assume the Town’s up-front investment of $10.0M and a debt service subsidy up to $17.3M in the first 11 years of operation. III.DISCUSSION On the day of this special meeting, staff will provide an updated presentation with current market rates from Piper Sandler and their impact on overall bond sizing, ensuring the most relevant and up to date information is available for discussion. During the April 17th meeting Council requested that staff explore options to identify an additional $15.0 million in cash contribution, which would bring the total potential equity contribution for the project to $25.0 million. The chart below outlines possible additional funding sources. Funds Available Amount Capital Project Fund Savings 5,000,000 Utilize RETT Funds for Dobson freeing up Capital Funds for West Middle Creek Capital Project Fund Savings 1,000,000 Utilize VRD Funds for Dobson freeing up Capital Funds for West Middle Creek TOV pays for W Middle Creek predevelopment costs 3,896,139 Current financing model assumes these will be reimbursed with bond proceeds West Middle Creek Legal Contingency 50,000 Current financing model assumes these will be reimbursed with bond proceeds Utilize InDeed Funds 4,000,000 Leaves $225K remaining for 2025 Utilize Buydown funds 1,053,861 Total 15,000,000 Current Cash Contribution 10,000,000 Total Potential Cash Contribution $25,000,000 Providing a higher cash contribution would reduce the size of the Certificates of Participation (COPs) from approximately $72.5M to $55.0M, thereby lowering total interest cost over the 40- year life of the bonds by $32.2M and decreasing the potential town exposure by approximately $5.1M. However, allocating these funds to this project also means forgoing their use for other potential priorities. For example, approximately $6.0 million of the identified funds could alternatively support the Dobson project (will also need financing) or Phase I of the geothermal project, which has an estimated cost of $8.7 million (not currently funded and may need financing). Another concept for Council’s consideration is to provide a cash contribution of up to $20M total to the West Middle Creek project while setting aside $5M for future debt service coverage. This 62 Town of Vail Page 3 would insulate the town’s budget from an economic softening and reduce the impact on the annual budget that debt service would bring (up to $12M over 10 years). Repeat information from April 17 on Reserves: 63 Town of Vail Page 4 IV.SUMMARY Does Council support the sale of the bonds for West Middle Creek on Tuesday May 6th? Would Council like to increase the cash contribution to the project? And if so what amount? 64 pipersandler.com |1 West Middle Creek Project Vail, Colorado Council Update May 5, 2025 65 pipersandler.com |2 3.50% 4.00% 4.50% 5.00% 1/1/2025 1/8/2025 1/15/2025 1/22/2025 1/29/2025 2/5/2025 2/12/2025 2/19/2025 2/26/2025 3/5/2025 3/12/2025 3/19/2025 3/26/2025 4/2/2025 4/9/2025 4/16/2025 4/23/2025 4/30/2025 30-Yr MMD Year-To-Date •The municipal bond market has stabilized since volatility spiked in early April. Several Colorado transactions have successfully priced such as Colorado Bridge & Tunnel Enterprise ($219M). •MMD opened on Monday, 5/5 at 4.36%, 13 bps lower than the last financing update to Town Council on 4/17. Date 30-Yr MMD Change From Day Prior (basis points) Cumulative Change (basis points) Mon, April 7 3.99%-8 bps -8 bps Tue, April 8 4.34%35 bps 27 bps Wed, April 9 4.54%20 bps 47 bps Thu, April 10 4.84%30 bps 77 bps Fri, April 11 4.39%-45 bps 32 bps Mon, April 14 4.64%25 bps 57 bps Tue, April 15 4.54%-10 bps 47 bps Wed, April 16 4.51%-3 bps 44 bps Thu, April 17 4.49%-2 bps 42 bps Fri, April 18 4.46%-3 bps 39 bps Mon, April 21 4.46%0 bps 39 bps Tue, April 22 4.51%5 bps 44 bps Wed, April 23 4.62%11 bps 55 bps Thu, April 24 4.52%-10 bps 45 bps Fri, April 25 4.48%-4 bps 41 bps Mon, April 28 4.46%-2 bps 39 bps Tue, April 29 4.46%0 bps 39 bps Wed, April 30 4.40%-6 bps 33 bps Thu, May 1 4.38%-2 bps 31 bps Fri, May 2 4.36%-2 bps 29 bps Mon, May 5 4.36%0 bps 29 bps MMD Over The Last Month Market Update 66 pipersandler.com |3 Equity Contribution Financing Scenarios Preliminary; subject to change. •The below table demonstrates four scenarios assuming varying equity contributions (all else held equal). •For example, at a $15 million total equity contribution, the COP sizing would be $62,175,000 and the Town’s potential exposure to COP debt service would be reduced to $4,310,639 from 2029-2033. •Figures assume interest rate as of May 2, 2025 close of business. Base Case Current Rates $10M Total Equity Current Rates $15M Total Equity Current Rates $20M Total Equity Current Rates $25M Total Equity Unit Mix 115% Avg AMI in Total 115% Avg AMI in Total 115% Avg AMI in Total 115% Avg AMI in Total COP Par Amount $67,870,000 $62,175,000 $56,485,000 $50,795,000 Town Equity Contribution $10,000,000 $15,000,000 $20,000,000 $25,000,000 Potential Town Exposure $6,216,398 $4,310,639 $2,805,892 $1,624,279 Years of Potential Exposure 2029-2034 2029-2033 2029-2032 2029-2031 Projected Surplus $77,793,571 $90,914,260 $104,427,403 $118,259,589 Total Interest $375,595,685 $365,335,400 $355,079,460 $344,827,630 True Interest Cost 5.94%5.97%5.99%6.01% Final Maturity 2064 2064 2064 2064 Summary of Equity Contribution Scenarios 67 pipersandler.com |4 Financing Statistics Over Time (Base Case) Preliminary; subject to change. 1/23/2025 2/25/2025 3/11/2025 3/27/2025 4/7/2025 4/16/2025 5/5/2025 Project Size $161.5M $161.5M $164.1M $164.1M $164.1M $164.1M $164.1M Par Amount - Revenue Bonds $129.9M $130.0M $131.6M $126.0M $123.3M $118.3M $122.8M Par Amount - COPs $49.8M $49.6M $56.8M $65.5M $67.3M $72.5M $67.9M True Interest Cost - Revenue Bonds 5.76%5.74%5.83%6.14%6.17%6.42%6.35% True Interest Cost - COPs 5.00%4.97%5.02%5.17%5.25%5.43%5.24% 30-Yr MMD Rate 3.98%3.97%4.05%4.31%4.34%4.49%4.36% Projected Out-Of-Pocket Exposure $822K $773K $2,192K $4,285K $4,828K $7,563K $6,216K Financing Statistics Over Time 68 pipersandler.com |5 Sources & Uses (Base Case) Preliminary; subject to change. Revenue Bond Proceeds (Par + Discount)$119,931,967 Revenue Bond Par Amount $122,750,000 Revenue Bond Discount ($2,818,033) COP Proceeds (Par + Premium)$70,164,641 COP Par Amount $67,870,000 COP Premium $2,294,641 Town Contribution $10,000,000 Investment Earnings $9,962,232 Total Sources $210,058,840 Sources Project Fund $164,374,535 Debt Service Reserve $11,941,203 Capitalized Interest Fund $31,375,262 Operating Reserve $418,943 Costs of Issuance $1,948,898 Total Uses $210,058,840 Uses 69 pipersandler.com |6 Appendix Cash Flow Graphs for Equity Contribution Scenarios 70 pipersandler.com |7 $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 Bond Net DS COP Net DS Net Cash Flow Preliminary; subject to change. Aggregate debt service exceeds projected net cash flow in 2028-2034 (estimated shortfall of $6.2M) Base Case ($10M Equity) – Projected Net Debt Service Net cash flow exceeds aggregate debt service in 2035-2064 (estimated surplus of $77.8M) 71 pipersandler.com |8 $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 Bond Net DS COP Net DS Net Cash Flow Preliminary; subject to change. Aggregate debt service exceeds projected net cash flow in 2029-2033 (estimated shortfall of $4.3M) $15M Equity Scenario – Projected Net Debt Service Net cash flow exceeds aggregate debt service in 2034-2064 (estimated surplus of $90.9M) 72 pipersandler.com |9 $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 Bond Net DS COP Net DS Net Cash Flow Preliminary; subject to change. Aggregate debt service exceeds projected net cash flow in 2029-2032 (estimated shortfall of $2.8M) $20M Equity Scenario – Projected Net Debt Service Net cash flow exceeds aggregate debt service in 2033-2064 (estimated surplus of $104.4M) 73 pipersandler.com |10 $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 Bond Net DS COP Net DS Net Cash Flow Preliminary; subject to change. Aggregate debt service exceeds projected net cash flow in 2029-2031 (estimated shortfall of $1.6M) $25M Equity Scenario – Projected Net Debt Service Net cash flow exceeds aggregate debt service in 2032-2064 (estimated surplus of $118.3M) 74 pipersandler.com |11 Appendix Debt Service Schedules for Equity Contribution Scenarios 75 pipersandler.com |12Preliminary; subject to change. Base Case ($10M Equity) – Projected Net Debt Service (Revenue Bonds) Period Principal Interest Gross Debt Service DSRF Requirement Released Capitalized Interest Net Debt Service NOI (3.0% Growth) Before R&R 5% Vacancy Less: Deposit to R&R Reserve Plus: DSRF Interest Earnings (@4%) Net Cash Flow Avail. For Debt Service Debt Service Coverage Ratio 12/31/2025 - 2,733,961 2,733,961 - 2,733,961 - - - - - - 12/31/2026 - 7,513,175 7,513,175 - 7,513,175 - - - - - - 12/31/2027 - 7,513,175 7,513,175 - 7,513,175 - - - - - - 12/31/2028 - 7,513,175 7,513,175 - 4,779,214 2,733,961 3,042,404 42,707 1,606,755 4,606,451 1.68 12/31/2029 - 7,513,175 7,513,175 - - 7,513,175 8,988,352 74,494 477,648 9,391,506 1.25 12/31/2030 - 7,513,175 7,513,175 - - 7,513,175 9,363,986 76,729 477,648 9,764,905 1.30 12/31/2031 - 7,513,175 7,513,175 - - 7,513,175 9,644,905 79,031 477,648 10,043,523 1.34 12/31/2032 - 7,513,175 7,513,175 - - 7,513,175 9,934,252 81,402 477,648 10,330,499 1.37 12/31/2033 - 7,513,175 7,513,175 - - 7,513,175 10,232,280 83,844 477,648 10,626,084 1.41 12/31/2034 - 7,513,175 7,513,175 - - 7,513,175 10,539,248 86,359 477,648 10,930,538 1.45 12/31/2035 - 7,513,175 7,513,175 - - 7,513,175 10,855,426 88,950 477,648 11,244,124 1.50 12/31/2036 - 7,513,175 7,513,175 - - 7,513,175 11,181,089 91,618 477,648 11,567,118 1.54 12/31/2037 - 7,513,175 7,513,175 - - 7,513,175 11,516,521 94,367 477,648 11,899,803 1.58 12/31/2038 - 7,513,175 7,513,175 - - 7,513,175 11,862,017 97,198 477,648 12,242,467 1.63 12/31/2039 - 7,513,175 7,513,175 - - 7,513,175 12,217,877 100,114 477,648 12,595,412 1.68 12/31/2040 - 7,513,175 7,513,175 - - 7,513,175 12,584,414 103,117 477,648 12,958,945 1.72 12/31/2041 - 7,513,175 7,513,175 - - 7,513,175 12,961,946 106,211 477,648 13,333,384 1.77 12/31/2042 160,000 7,513,175 7,673,175 - - 7,673,175 13,350,804 109,397 477,648 13,719,056 1.79 12/31/2043 390,000 7,503,775 7,893,775 - - 7,893,775 13,751,329 112,679 477,648 14,116,298 1.79 12/31/2044 640,000 7,480,863 8,120,863 - - 8,120,863 14,163,868 116,059 477,648 14,525,457 1.79 12/31/2045 915,000 7,443,263 8,358,263 - - 8,358,263 14,588,784 119,541 477,648 14,946,892 1.79 12/31/2046 1,210,000 7,389,506 8,599,506 - - 8,599,506 15,026,448 123,127 477,648 15,380,969 1.79 12/31/2047 1,535,000 7,315,394 8,850,394 - - 8,850,394 15,477,241 126,821 477,648 15,828,069 1.79 12/31/2048 1,885,000 7,221,375 9,106,375 - - 9,106,375 15,941,559 130,626 477,648 16,288,581 1.79 12/31/2049 2,265,000 7,105,919 9,370,919 - - 9,370,919 16,419,805 134,544 477,648 16,762,909 1.79 12/31/2050 2,680,000 6,967,188 9,647,188 - - 9,647,188 16,912,400 138,581 477,648 17,251,467 1.79 12/31/2051 3,125,000 6,803,038 9,928,038 - - 9,928,038 17,419,772 142,738 477,648 17,754,682 1.79 12/31/2052 3,605,000 6,611,631 10,216,631 - - 10,216,631 17,942,365 147,020 477,648 18,272,993 1.79 12/31/2053 4,125,000 6,390,825 10,515,825 - - 10,515,825 18,480,636 151,431 477,648 18,806,853 1.79 12/31/2054 4,685,000 6,138,169 10,823,169 - - 10,823,169 19,035,055 155,974 477,648 19,356,729 1.79 12/31/2055 5,290,000 5,851,213 11,141,213 - - 11,141,213 19,606,106 160,653 477,648 19,923,102 1.79 12/31/2056 5,940,000 5,527,200 11,467,200 - - 11,467,200 20,194,290 165,473 477,648 20,506,465 1.79 12/31/2057 6,640,000 5,163,375 11,803,375 - - 11,803,375 20,800,118 170,437 477,648 21,107,330 1.79 12/31/2058 7,390,000 4,756,675 12,146,675 - - 12,146,675 21,424,122 175,550 477,648 21,726,220 1.79 12/31/2059 8,200,000 4,304,038 12,504,038 - - 12,504,038 22,066,845 180,816 477,648 22,363,677 1.79 12/31/2060 9,070,000 3,801,788 12,871,788 - - 12,871,788 22,728,851 186,241 477,648 23,020,258 1.79 12/31/2061 10,005,000 3,246,250 13,251,250 - - 13,251,250 23,410,716 191,828 477,648 23,696,536 1.79 12/31/2062 11,005,000 2,633,444 13,638,444 - - 13,638,444 24,113,038 197,583 477,648 24,393,103 1.79 12/31/2063 12,080,000 1,959,388 14,039,388 - - 14,039,388 24,836,429 203,510 477,648 25,110,567 1.79 12/31/2064 19,910,000 1,219,488 21,129,488 11,941,203 - 9,188,285 25,581,522 209,616 477,648 25,849,554 2.81 Total:122,750,000 253,291,736 376,041,736 11,941,203 22,539,525 341,561,008 578,196,819 4,756,381 18,802,087 592,242,525 76 pipersandler.com |13 Period Principal Interest Gross COP Debt Service Capitalized Interest Net COP Debt Service Residual Net Cash Flow (Deficit) / Surplus Combined NOI Coverage 12/31/2025 - 1,957,680 1,957,680 1,957,680 - - - - 12/31/2026 - 3,689,869 3,689,869 3,689,869 - - - - 12/31/2027 - 3,689,869 3,689,869 3,689,869 - - - - 12/31/2028 - 3,689,869 3,689,869 1,732,188 1,957,680 1,872,490 (85,190) 0.98 12/31/2029 - 3,689,869 3,689,869 - 3,689,869 1,878,331 (1,811,538) 0.84 12/31/2030 - 3,689,869 3,689,869 - 3,689,869 2,251,730 (1,438,139) 0.87 12/31/2031 - 3,689,869 3,689,869 - 3,689,869 2,530,348 (1,159,521) 0.90 12/31/2032 - 3,689,869 3,689,869 - 3,689,869 2,817,324 (872,545) 0.92 12/31/2033 - 3,689,869 3,689,869 - 3,689,869 3,112,909 (576,959) 0.95 12/31/2034 - 3,689,869 3,689,869 - 3,689,869 3,417,363 (272,506) 0.98 12/31/2035 - 3,689,869 3,689,869 - 3,689,869 3,730,949 41,080 1.00 12/31/2036 - 3,689,869 3,689,869 - 3,689,869 4,053,943 364,075 1.03 12/31/2037 - 3,689,869 3,689,869 - 3,689,869 4,386,628 696,759 1.06 12/31/2038 - 3,689,869 3,689,869 - 3,689,869 4,729,292 1,039,423 1.09 12/31/2039 - 3,689,869 3,689,869 - 3,689,869 5,082,237 1,392,368 1.12 12/31/2040 55,000 3,689,869 3,744,869 - 3,744,869 5,445,770 1,700,901 1.15 12/31/2041 170,000 3,687,119 3,857,119 - 3,857,119 5,820,209 1,963,090 1.17 12/31/2042 295,000 3,678,619 3,973,619 - 3,973,619 6,045,881 2,072,262 1.18 12/31/2043 430,000 3,663,869 4,093,869 - 4,093,869 6,222,523 2,128,654 1.18 12/31/2044 575,000 3,642,369 4,217,369 - 4,217,369 6,404,595 2,187,226 1.18 12/31/2045 730,000 3,613,619 4,343,619 - 4,343,619 6,588,629 2,245,010 1.18 12/31/2046 895,000 3,577,119 4,472,119 - 4,472,119 6,781,463 2,309,344 1.18 12/31/2047 1,075,000 3,530,131 4,605,131 - 4,605,131 6,977,675 2,372,544 1.18 12/31/2048 1,270,000 3,473,694 4,743,694 - 4,743,694 7,182,206 2,438,512 1.18 12/31/2049 1,480,000 3,407,019 4,887,019 - 4,887,019 7,391,990 2,504,972 1.18 12/31/2050 1,705,000 3,329,319 5,034,319 - 5,034,319 7,604,280 2,569,961 1.18 12/31/2051 1,945,000 3,239,806 5,184,806 - 5,184,806 7,826,644 2,641,838 1.17 12/31/2052 2,205,000 3,135,263 5,340,263 - 5,340,263 8,056,361 2,716,099 1.17 12/31/2053 2,485,000 3,016,744 5,501,744 - 5,501,744 8,291,028 2,789,284 1.17 12/31/2054 2,780,000 2,883,175 5,663,175 - 5,663,175 8,533,560 2,870,385 1.17 12/31/2055 3,100,000 2,733,750 5,833,750 - 5,833,750 8,781,889 2,948,139 1.17 12/31/2056 3,445,000 2,567,125 6,012,125 - 6,012,125 9,039,265 3,027,140 1.17 12/31/2057 3,815,000 2,377,650 6,192,650 - 6,192,650 9,303,955 3,111,305 1.17 12/31/2058 4,210,000 2,167,825 6,377,825 - 6,377,825 9,579,545 3,201,720 1.17 12/31/2059 4,630,000 1,936,275 6,566,275 - 6,566,275 9,859,640 3,293,365 1.17 12/31/2060 5,085,000 1,681,625 6,766,625 - 6,766,625 10,148,471 3,381,846 1.17 12/31/2061 5,565,000 1,401,950 6,966,950 - 6,966,950 10,445,286 3,478,336 1.17 12/31/2062 6,080,000 1,095,875 7,175,875 - 7,175,875 10,754,659 3,578,784 1.17 12/31/2063 6,630,000 761,475 7,391,475 - 7,391,475 11,071,179 3,679,704 1.17 12/31/2064 7,215,000 396,825 7,611,825 - 7,611,825 16,661,269 9,049,444 1.54 Total:67,870,000 122,303,949 190,173,949 11,069,606 179,104,343 250,681,516 71,577,173 Projected $6.2M out-of-pocket exposure Preliminary; subject to change. Base Case ($10M Equity) – Projected Net Debt Service (COPs) 77 pipersandler.com |14Preliminary; subject to change. $15M Equity – Projected Net Debt Service (Revenue Bonds) Period Principal Interest Gross Debt Service DSRF Requirement Released Capitalized Interest Net Debt Service NOI (3.0% Growth) Before R&R 5% Vacancy Less: Deposit to R&R Reserve Plus: DSRF Interest Earnings (@4%) Net Cash Flow Avail. For Debt Service Debt Service Coverage Ratio 12/31/2025 - 2,733,961 2,733,961 - 2,733,961 - - - - - - 12/31/2026 - 7,513,175 7,513,175 - 7,513,175 - - - - - - 12/31/2027 - 7,513,175 7,513,175 - 7,513,175 - - - - - - 12/31/2028 - 7,513,175 7,513,175 - 4,779,214 2,733,961 3,042,404 42,707 1,606,755 4,606,451 1.68 12/31/2029 - 7,513,175 7,513,175 - - 7,513,175 8,988,352 74,494 477,648 9,391,506 1.25 12/31/2030 - 7,513,175 7,513,175 - - 7,513,175 9,363,986 76,729 477,648 9,764,905 1.30 12/31/2031 - 7,513,175 7,513,175 - - 7,513,175 9,644,905 79,031 477,648 10,043,523 1.34 12/31/2032 - 7,513,175 7,513,175 - - 7,513,175 9,934,252 81,402 477,648 10,330,499 1.37 12/31/2033 - 7,513,175 7,513,175 - - 7,513,175 10,232,280 83,844 477,648 10,626,084 1.41 12/31/2034 - 7,513,175 7,513,175 - - 7,513,175 10,539,248 86,359 477,648 10,930,538 1.45 12/31/2035 - 7,513,175 7,513,175 - - 7,513,175 10,855,426 88,950 477,648 11,244,124 1.50 12/31/2036 - 7,513,175 7,513,175 - - 7,513,175 11,181,089 91,618 477,648 11,567,118 1.54 12/31/2037 - 7,513,175 7,513,175 - - 7,513,175 11,516,521 94,367 477,648 11,899,803 1.58 12/31/2038 - 7,513,175 7,513,175 - - 7,513,175 11,862,017 97,198 477,648 12,242,467 1.63 12/31/2039 - 7,513,175 7,513,175 - - 7,513,175 12,217,877 100,114 477,648 12,595,412 1.68 12/31/2040 - 7,513,175 7,513,175 - - 7,513,175 12,584,414 103,117 477,648 12,958,945 1.72 12/31/2041 - 7,513,175 7,513,175 - - 7,513,175 12,961,946 106,211 477,648 13,333,384 1.77 12/31/2042 160,000 7,513,175 7,673,175 - - 7,673,175 13,350,804 109,397 477,648 13,719,056 1.79 12/31/2043 390,000 7,503,775 7,893,775 - - 7,893,775 13,751,329 112,679 477,648 14,116,298 1.79 12/31/2044 640,000 7,480,863 8,120,863 - - 8,120,863 14,163,868 116,059 477,648 14,525,457 1.79 12/31/2045 915,000 7,443,263 8,358,263 - - 8,358,263 14,588,784 119,541 477,648 14,946,892 1.79 12/31/2046 1,210,000 7,389,506 8,599,506 - - 8,599,506 15,026,448 123,127 477,648 15,380,969 1.79 12/31/2047 1,535,000 7,315,394 8,850,394 - - 8,850,394 15,477,241 126,821 477,648 15,828,069 1.79 12/31/2048 1,885,000 7,221,375 9,106,375 - - 9,106,375 15,941,559 130,626 477,648 16,288,581 1.79 12/31/2049 2,265,000 7,105,919 9,370,919 - - 9,370,919 16,419,805 134,544 477,648 16,762,909 1.79 12/31/2050 2,680,000 6,967,188 9,647,188 - - 9,647,188 16,912,400 138,581 477,648 17,251,467 1.79 12/31/2051 3,125,000 6,803,038 9,928,038 - - 9,928,038 17,419,772 142,738 477,648 17,754,682 1.79 12/31/2052 3,605,000 6,611,631 10,216,631 - - 10,216,631 17,942,365 147,020 477,648 18,272,993 1.79 12/31/2053 4,125,000 6,390,825 10,515,825 - - 10,515,825 18,480,636 151,431 477,648 18,806,853 1.79 12/31/2054 4,685,000 6,138,169 10,823,169 - - 10,823,169 19,035,055 155,974 477,648 19,356,729 1.79 12/31/2055 5,290,000 5,851,213 11,141,213 - - 11,141,213 19,606,106 160,653 477,648 19,923,102 1.79 12/31/2056 5,940,000 5,527,200 11,467,200 - - 11,467,200 20,194,290 165,473 477,648 20,506,465 1.79 12/31/2057 6,640,000 5,163,375 11,803,375 - - 11,803,375 20,800,118 170,437 477,648 21,107,330 1.79 12/31/2058 7,390,000 4,756,675 12,146,675 - - 12,146,675 21,424,122 175,550 477,648 21,726,220 1.79 12/31/2059 8,200,000 4,304,038 12,504,038 - - 12,504,038 22,066,845 180,816 477,648 22,363,677 1.79 12/31/2060 9,070,000 3,801,788 12,871,788 - - 12,871,788 22,728,851 186,241 477,648 23,020,258 1.79 12/31/2061 10,005,000 3,246,250 13,251,250 - - 13,251,250 23,410,716 191,828 477,648 23,696,536 1.79 12/31/2062 11,005,000 2,633,444 13,638,444 - - 13,638,444 24,113,038 197,583 477,648 24,393,103 1.79 12/31/2063 12,080,000 1,959,388 14,039,388 - - 14,039,388 24,836,429 203,510 477,648 25,110,567 1.79 12/31/2064 19,910,000 1,219,488 21,129,488 11,941,203 - 9,188,285 25,581,522 209,616 477,648 25,849,554 2.81 Total:122,750,000 253,291,736 376,041,736 11,941,203 22,539,525 341,561,008 578,196,819 4,756,381 18,802,087 592,242,525 78 pipersandler.com |15 Period Principal Interest Gross COP Debt Service Capitalized Interest Net COP Debt Service Residual Net Cash Flow (Deficit) / Surplus Combined NOI Coverage 12/31/2025 - 1,793,414 1,793,414 1,793,414 - - - - 12/31/2026 - 3,380,256 3,380,256 3,380,256 - - - - 12/31/2027 - 3,380,256 3,380,256 3,380,256 - - - - 12/31/2028 - 3,380,256 3,380,256 1,586,843 1,793,414 1,872,490 79,077 1.02 12/31/2029 - 3,380,256 3,380,256 - 3,380,256 1,878,331 (1,501,925) 0.86 12/31/2030 - 3,380,256 3,380,256 - 3,380,256 2,251,730 (1,128,526) 0.90 12/31/2031 - 3,380,256 3,380,256 - 3,380,256 2,530,348 (849,909) 0.92 12/31/2032 - 3,380,256 3,380,256 - 3,380,256 2,817,324 (562,932) 0.95 12/31/2033 - 3,380,256 3,380,256 - 3,380,256 3,112,909 (267,347) 0.98 12/31/2034 - 3,380,256 3,380,256 - 3,380,256 3,417,363 37,106 1.00 12/31/2035 - 3,380,256 3,380,256 - 3,380,256 3,730,949 350,693 1.03 12/31/2036 - 3,380,256 3,380,256 - 3,380,256 4,053,943 673,687 1.06 12/31/2037 - 3,380,256 3,380,256 - 3,380,256 4,386,628 1,006,371 1.09 12/31/2038 - 3,380,256 3,380,256 - 3,380,256 4,729,292 1,349,036 1.12 12/31/2039 - 3,380,256 3,380,256 - 3,380,256 5,082,237 1,701,981 1.16 12/31/2040 50,000 3,380,256 3,430,256 - 3,430,256 5,445,770 2,015,513 1.18 12/31/2041 155,000 3,377,756 3,532,756 - 3,532,756 5,820,209 2,287,452 1.21 12/31/2042 270,000 3,370,006 3,640,006 - 3,640,006 6,045,881 2,405,874 1.21 12/31/2043 395,000 3,356,506 3,751,506 - 3,751,506 6,222,523 2,471,017 1.21 12/31/2044 525,000 3,336,756 3,861,756 - 3,861,756 6,404,595 2,542,839 1.21 12/31/2045 670,000 3,310,506 3,980,506 - 3,980,506 6,588,629 2,608,123 1.21 12/31/2046 820,000 3,277,006 4,097,006 - 4,097,006 6,781,463 2,684,456 1.21 12/31/2047 985,000 3,233,956 4,218,956 - 4,218,956 6,977,675 2,758,719 1.21 12/31/2048 1,165,000 3,182,244 4,347,244 - 4,347,244 7,182,206 2,834,962 1.21 12/31/2049 1,355,000 3,121,081 4,476,081 - 4,476,081 7,391,990 2,915,909 1.21 12/31/2050 1,560,000 3,049,944 4,609,944 - 4,609,944 7,604,280 2,994,336 1.21 12/31/2051 1,780,000 2,968,044 4,748,044 - 4,748,044 7,826,644 3,078,600 1.21 12/31/2052 2,020,000 2,872,369 4,892,369 - 4,892,369 8,056,361 3,163,993 1.21 12/31/2053 2,275,000 2,763,794 5,038,794 - 5,038,794 8,291,028 3,252,234 1.21 12/31/2054 2,550,000 2,641,513 5,191,513 - 5,191,513 8,533,560 3,342,048 1.21 12/31/2055 2,840,000 2,504,450 5,344,450 - 5,344,450 8,781,889 3,437,439 1.21 12/31/2056 3,155,000 2,351,800 5,506,800 - 5,506,800 9,039,265 3,532,465 1.21 12/31/2057 3,495,000 2,178,275 5,673,275 - 5,673,275 9,303,955 3,630,680 1.21 12/31/2058 3,855,000 1,986,050 5,841,050 - 5,841,050 9,579,545 3,738,495 1.21 12/31/2059 4,245,000 1,774,025 6,019,025 - 6,019,025 9,859,640 3,840,615 1.21 12/31/2060 4,655,000 1,540,550 6,195,550 - 6,195,550 10,148,471 3,952,921 1.21 12/31/2061 5,100,000 1,284,525 6,384,525 - 6,384,525 10,445,286 4,060,761 1.21 12/31/2062 5,570,000 1,004,025 6,574,025 - 6,574,025 10,754,659 4,180,634 1.21 12/31/2063 6,075,000 697,675 6,772,675 - 6,772,675 11,071,179 4,298,504 1.21 12/31/2064 6,610,000 363,550 6,973,550 - 6,973,550 16,661,269 9,687,719 1.60 Total:62,175,000 112,043,664 174,218,664 10,140,769 164,077,895 250,681,516 86,603,621 Projected $4.3M out-of-pocket exposure Preliminary; subject to change. $15M Equity – Projected Net Debt Service (COPs) 79 pipersandler.com |16Preliminary; subject to change. $20M Equity – Projected Net Debt Service (Revenue Bonds) Period Principal Interest Gross Debt Service DSRF Requirement Released Capitalized Interest Net Debt Service NOI (3.0% Growth) Before R&R 5% Vacancy Less: Deposit to R&R Reserve Plus: DSRF Interest Earnings (@4%) Net Cash Flow Avail. For Debt Service Debt Service Coverage Ratio 12/31/2025 - 2,733,961 2,733,961 - 2,733,961 - - - - - - 12/31/2026 - 7,513,175 7,513,175 - 7,513,175 - - - - - - 12/31/2027 - 7,513,175 7,513,175 - 7,513,175 - - - - - - 12/31/2028 - 7,513,175 7,513,175 - 4,779,214 2,733,961 3,042,404 42,707 1,606,755 4,606,451 1.68 12/31/2029 - 7,513,175 7,513,175 - - 7,513,175 8,988,352 74,494 477,648 9,391,506 1.25 12/31/2030 - 7,513,175 7,513,175 - - 7,513,175 9,363,986 76,729 477,648 9,764,905 1.30 12/31/2031 - 7,513,175 7,513,175 - - 7,513,175 9,644,905 79,031 477,648 10,043,523 1.34 12/31/2032 - 7,513,175 7,513,175 - - 7,513,175 9,934,252 81,402 477,648 10,330,499 1.37 12/31/2033 - 7,513,175 7,513,175 - - 7,513,175 10,232,280 83,844 477,648 10,626,084 1.41 12/31/2034 - 7,513,175 7,513,175 - - 7,513,175 10,539,248 86,359 477,648 10,930,538 1.45 12/31/2035 - 7,513,175 7,513,175 - - 7,513,175 10,855,426 88,950 477,648 11,244,124 1.50 12/31/2036 - 7,513,175 7,513,175 - - 7,513,175 11,181,089 91,618 477,648 11,567,118 1.54 12/31/2037 - 7,513,175 7,513,175 - - 7,513,175 11,516,521 94,367 477,648 11,899,803 1.58 12/31/2038 - 7,513,175 7,513,175 - - 7,513,175 11,862,017 97,198 477,648 12,242,467 1.63 12/31/2039 - 7,513,175 7,513,175 - - 7,513,175 12,217,877 100,114 477,648 12,595,412 1.68 12/31/2040 - 7,513,175 7,513,175 - - 7,513,175 12,584,414 103,117 477,648 12,958,945 1.72 12/31/2041 - 7,513,175 7,513,175 - - 7,513,175 12,961,946 106,211 477,648 13,333,384 1.77 12/31/2042 160,000 7,513,175 7,673,175 - - 7,673,175 13,350,804 109,397 477,648 13,719,056 1.79 12/31/2043 390,000 7,503,775 7,893,775 - - 7,893,775 13,751,329 112,679 477,648 14,116,298 1.79 12/31/2044 640,000 7,480,863 8,120,863 - - 8,120,863 14,163,868 116,059 477,648 14,525,457 1.79 12/31/2045 915,000 7,443,263 8,358,263 - - 8,358,263 14,588,784 119,541 477,648 14,946,892 1.79 12/31/2046 1,210,000 7,389,506 8,599,506 - - 8,599,506 15,026,448 123,127 477,648 15,380,969 1.79 12/31/2047 1,535,000 7,315,394 8,850,394 - - 8,850,394 15,477,241 126,821 477,648 15,828,069 1.79 12/31/2048 1,885,000 7,221,375 9,106,375 - - 9,106,375 15,941,559 130,626 477,648 16,288,581 1.79 12/31/2049 2,265,000 7,105,919 9,370,919 - - 9,370,919 16,419,805 134,544 477,648 16,762,909 1.79 12/31/2050 2,680,000 6,967,188 9,647,188 - - 9,647,188 16,912,400 138,581 477,648 17,251,467 1.79 12/31/2051 3,125,000 6,803,038 9,928,038 - - 9,928,038 17,419,772 142,738 477,648 17,754,682 1.79 12/31/2052 3,605,000 6,611,631 10,216,631 - - 10,216,631 17,942,365 147,020 477,648 18,272,993 1.79 12/31/2053 4,125,000 6,390,825 10,515,825 - - 10,515,825 18,480,636 151,431 477,648 18,806,853 1.79 12/31/2054 4,685,000 6,138,169 10,823,169 - - 10,823,169 19,035,055 155,974 477,648 19,356,729 1.79 12/31/2055 5,290,000 5,851,213 11,141,213 - - 11,141,213 19,606,106 160,653 477,648 19,923,102 1.79 12/31/2056 5,940,000 5,527,200 11,467,200 - - 11,467,200 20,194,290 165,473 477,648 20,506,465 1.79 12/31/2057 6,640,000 5,163,375 11,803,375 - - 11,803,375 20,800,118 170,437 477,648 21,107,330 1.79 12/31/2058 7,390,000 4,756,675 12,146,675 - - 12,146,675 21,424,122 175,550 477,648 21,726,220 1.79 12/31/2059 8,200,000 4,304,038 12,504,038 - - 12,504,038 22,066,845 180,816 477,648 22,363,677 1.79 12/31/2060 9,070,000 3,801,788 12,871,788 - - 12,871,788 22,728,851 186,241 477,648 23,020,258 1.79 12/31/2061 10,005,000 3,246,250 13,251,250 - - 13,251,250 23,410,716 191,828 477,648 23,696,536 1.79 12/31/2062 11,005,000 2,633,444 13,638,444 - - 13,638,444 24,113,038 197,583 477,648 24,393,103 1.79 12/31/2063 12,080,000 1,959,388 14,039,388 - - 14,039,388 24,836,429 203,510 477,648 25,110,567 1.79 12/31/2064 19,910,000 1,219,488 21,129,488 11,941,203 - 9,188,285 25,581,522 209,616 477,648 25,849,554 2.81 Total:122,750,000 253,291,736 376,041,736 11,941,203 22,539,525 341,561,008 578,196,819 4,756,381 18,802,087 592,242,525 80 pipersandler.com |17 Period Principal Interest Gross COP Debt Service Capitalized Interest Net COP Debt Service Residual Net Cash Flow (Deficit) / Surplus Combined NOI Coverage 12/31/2025 - 1,629,286 1,629,286 1,629,286 - - - - 12/31/2026 - 3,070,906 3,070,906 3,070,906 - - - - 12/31/2027 - 3,070,906 3,070,906 3,070,906 - - - - 12/31/2028 - 3,070,906 3,070,906 1,441,620 1,629,286 1,872,490 243,204 1.06 12/31/2029 - 3,070,906 3,070,906 - 3,070,906 1,878,331 (1,192,575) 0.89 12/31/2030 - 3,070,906 3,070,906 - 3,070,906 2,251,730 (819,176) 0.92 12/31/2031 - 3,070,906 3,070,906 - 3,070,906 2,530,348 (540,559) 0.95 12/31/2032 - 3,070,906 3,070,906 - 3,070,906 2,817,324 (253,582) 0.98 12/31/2033 - 3,070,906 3,070,906 - 3,070,906 3,112,909 42,003 1.00 12/31/2034 - 3,070,906 3,070,906 - 3,070,906 3,417,363 346,456 1.03 12/31/2035 - 3,070,906 3,070,906 - 3,070,906 3,730,949 660,043 1.06 12/31/2036 - 3,070,906 3,070,906 - 3,070,906 4,053,943 983,037 1.09 12/31/2037 - 3,070,906 3,070,906 - 3,070,906 4,386,628 1,315,721 1.12 12/31/2038 - 3,070,906 3,070,906 - 3,070,906 4,729,292 1,658,386 1.16 12/31/2039 - 3,070,906 3,070,906 - 3,070,906 5,082,237 2,011,331 1.19 12/31/2040 45,000 3,070,906 3,115,906 - 3,115,906 5,445,770 2,329,863 1.22 12/31/2041 145,000 3,068,656 3,213,656 - 3,213,656 5,820,209 2,606,552 1.24 12/31/2042 245,000 3,061,406 3,306,406 - 3,306,406 6,045,881 2,739,474 1.25 12/31/2043 360,000 3,049,156 3,409,156 - 3,409,156 6,222,523 2,813,367 1.25 12/31/2044 475,000 3,031,156 3,506,156 - 3,506,156 6,404,595 2,898,439 1.25 12/31/2045 605,000 3,007,406 3,612,406 - 3,612,406 6,588,629 2,976,223 1.25 12/31/2046 745,000 2,977,156 3,722,156 - 3,722,156 6,781,463 3,059,306 1.25 12/31/2047 895,000 2,938,044 3,833,044 - 3,833,044 6,977,675 3,144,631 1.25 12/31/2048 1,060,000 2,891,056 3,951,056 - 3,951,056 7,182,206 3,231,150 1.25 12/31/2049 1,230,000 2,835,406 4,065,406 - 4,065,406 7,391,990 3,326,584 1.25 12/31/2050 1,420,000 2,770,831 4,190,831 - 4,190,831 7,604,280 3,413,448 1.25 12/31/2051 1,620,000 2,696,281 4,316,281 - 4,316,281 7,826,644 3,510,363 1.25 12/31/2052 1,835,000 2,609,206 4,444,206 - 4,444,206 8,056,361 3,612,155 1.25 12/31/2053 2,065,000 2,510,575 4,575,575 - 4,575,575 8,291,028 3,715,453 1.25 12/31/2054 2,315,000 2,399,581 4,714,581 - 4,714,581 8,533,560 3,818,979 1.25 12/31/2055 2,580,000 2,275,150 4,855,150 - 4,855,150 8,781,889 3,926,739 1.25 12/31/2056 2,865,000 2,136,475 5,001,475 - 5,001,475 9,039,265 4,037,790 1.25 12/31/2057 3,175,000 1,978,900 5,153,900 - 5,153,900 9,303,955 4,150,055 1.24 12/31/2058 3,505,000 1,804,275 5,309,275 - 5,309,275 9,579,545 4,270,270 1.24 12/31/2059 3,855,000 1,611,500 5,466,500 - 5,466,500 9,859,640 4,393,140 1.24 12/31/2060 4,230,000 1,399,475 5,629,475 - 5,629,475 10,148,471 4,518,996 1.24 12/31/2061 4,630,000 1,166,825 5,796,825 - 5,796,825 10,445,286 4,648,461 1.24 12/31/2062 5,060,000 912,175 5,972,175 - 5,972,175 10,754,659 4,782,484 1.24 12/31/2063 5,520,000 633,875 6,153,875 - 6,153,875 11,071,179 4,917,304 1.24 12/31/2064 6,005,000 330,275 6,335,275 - 6,335,275 16,661,269 10,325,994 1.67 Total:56,485,000 101,787,724 158,272,724 9,212,719 149,060,005 250,681,516 101,621,511 Projected $2.8M out-of-pocket exposure Preliminary; subject to change. $20M Equity – Projected Net Debt Service (COPs) 81 pipersandler.com |18Preliminary; subject to change. $25M Equity – Projected Net Debt Service (Revenue Bonds) Period Principal Interest Gross Debt Service DSRF Requirement Released Capitalized Interest Net Debt Service NOI (3.0% Growth) Before R&R 5% Vacancy Less: Deposit to R&R Reserve Plus: DSRF Interest Earnings (@4%) Net Cash Flow Avail. For Debt Service Debt Service Coverage Ratio 12/31/2025 - 2,733,961 2,733,961 - 2,733,961 - - - - - - 12/31/2026 - 7,513,175 7,513,175 - 7,513,175 - - - - - - 12/31/2027 - 7,513,175 7,513,175 - 7,513,175 - - - - - - 12/31/2028 - 7,513,175 7,513,175 - 4,779,214 2,733,961 3,042,404 42,707 1,606,755 4,606,451 1.68 12/31/2029 - 7,513,175 7,513,175 - - 7,513,175 8,988,352 74,494 477,648 9,391,506 1.25 12/31/2030 - 7,513,175 7,513,175 - - 7,513,175 9,363,986 76,729 477,648 9,764,905 1.30 12/31/2031 - 7,513,175 7,513,175 - - 7,513,175 9,644,905 79,031 477,648 10,043,523 1.34 12/31/2032 - 7,513,175 7,513,175 - - 7,513,175 9,934,252 81,402 477,648 10,330,499 1.37 12/31/2033 - 7,513,175 7,513,175 - - 7,513,175 10,232,280 83,844 477,648 10,626,084 1.41 12/31/2034 - 7,513,175 7,513,175 - - 7,513,175 10,539,248 86,359 477,648 10,930,538 1.45 12/31/2035 - 7,513,175 7,513,175 - - 7,513,175 10,855,426 88,950 477,648 11,244,124 1.50 12/31/2036 - 7,513,175 7,513,175 - - 7,513,175 11,181,089 91,618 477,648 11,567,118 1.54 12/31/2037 - 7,513,175 7,513,175 - - 7,513,175 11,516,521 94,367 477,648 11,899,803 1.58 12/31/2038 - 7,513,175 7,513,175 - - 7,513,175 11,862,017 97,198 477,648 12,242,467 1.63 12/31/2039 - 7,513,175 7,513,175 - - 7,513,175 12,217,877 100,114 477,648 12,595,412 1.68 12/31/2040 - 7,513,175 7,513,175 - - 7,513,175 12,584,414 103,117 477,648 12,958,945 1.72 12/31/2041 - 7,513,175 7,513,175 - - 7,513,175 12,961,946 106,211 477,648 13,333,384 1.77 12/31/2042 160,000 7,513,175 7,673,175 - - 7,673,175 13,350,804 109,397 477,648 13,719,056 1.79 12/31/2043 390,000 7,503,775 7,893,775 - - 7,893,775 13,751,329 112,679 477,648 14,116,298 1.79 12/31/2044 640,000 7,480,863 8,120,863 - - 8,120,863 14,163,868 116,059 477,648 14,525,457 1.79 12/31/2045 915,000 7,443,263 8,358,263 - - 8,358,263 14,588,784 119,541 477,648 14,946,892 1.79 12/31/2046 1,210,000 7,389,506 8,599,506 - - 8,599,506 15,026,448 123,127 477,648 15,380,969 1.79 12/31/2047 1,535,000 7,315,394 8,850,394 - - 8,850,394 15,477,241 126,821 477,648 15,828,069 1.79 12/31/2048 1,885,000 7,221,375 9,106,375 - - 9,106,375 15,941,559 130,626 477,648 16,288,581 1.79 12/31/2049 2,265,000 7,105,919 9,370,919 - - 9,370,919 16,419,805 134,544 477,648 16,762,909 1.79 12/31/2050 2,680,000 6,967,188 9,647,188 - - 9,647,188 16,912,400 138,581 477,648 17,251,467 1.79 12/31/2051 3,125,000 6,803,038 9,928,038 - - 9,928,038 17,419,772 142,738 477,648 17,754,682 1.79 12/31/2052 3,605,000 6,611,631 10,216,631 - - 10,216,631 17,942,365 147,020 477,648 18,272,993 1.79 12/31/2053 4,125,000 6,390,825 10,515,825 - - 10,515,825 18,480,636 151,431 477,648 18,806,853 1.79 12/31/2054 4,685,000 6,138,169 10,823,169 - - 10,823,169 19,035,055 155,974 477,648 19,356,729 1.79 12/31/2055 5,290,000 5,851,213 11,141,213 - - 11,141,213 19,606,106 160,653 477,648 19,923,102 1.79 12/31/2056 5,940,000 5,527,200 11,467,200 - - 11,467,200 20,194,290 165,473 477,648 20,506,465 1.79 12/31/2057 6,640,000 5,163,375 11,803,375 - - 11,803,375 20,800,118 170,437 477,648 21,107,330 1.79 12/31/2058 7,390,000 4,756,675 12,146,675 - - 12,146,675 21,424,122 175,550 477,648 21,726,220 1.79 12/31/2059 8,200,000 4,304,038 12,504,038 - - 12,504,038 22,066,845 180,816 477,648 22,363,677 1.79 12/31/2060 9,070,000 3,801,788 12,871,788 - - 12,871,788 22,728,851 186,241 477,648 23,020,258 1.79 12/31/2061 10,005,000 3,246,250 13,251,250 - - 13,251,250 23,410,716 191,828 477,648 23,696,536 1.79 12/31/2062 11,005,000 2,633,444 13,638,444 - - 13,638,444 24,113,038 197,583 477,648 24,393,103 1.79 12/31/2063 12,080,000 1,959,388 14,039,388 - - 14,039,388 24,836,429 203,510 477,648 25,110,567 1.79 12/31/2064 19,910,000 1,219,488 21,129,488 11,941,203 - 9,188,285 25,581,522 209,616 477,648 25,849,554 2.81 Total:122,750,000 253,291,736 376,041,736 11,941,203 22,539,525 341,561,008 578,196,819 4,756,381 18,802,087 592,242,525 82 pipersandler.com |19 Period Principal Interest Gross COP Debt Service Capitalized Interest Net COP Debt Service Residual Net Cash Flow (Deficit) / Surplus Combined NOI Coverage 12/31/2025 - 1,465,162 1,465,162 1,465,162 - - - - 12/31/2026 - 2,761,563 2,761,563 2,761,563 - - - - 12/31/2027 - 2,761,563 2,761,563 2,761,563 - - - - 12/31/2028 - 2,761,563 2,761,563 1,296,400 1,465,162 1,872,490 407,328 1.10 12/31/2029 - 2,761,563 2,761,563 - 2,761,563 1,878,331 (883,231) 0.91 12/31/2030 - 2,761,563 2,761,563 - 2,761,563 2,251,730 (509,833) 0.95 12/31/2031 - 2,761,563 2,761,563 - 2,761,563 2,530,348 (231,215) 0.98 12/31/2032 - 2,761,563 2,761,563 - 2,761,563 2,817,324 55,761 1.01 12/31/2033 - 2,761,563 2,761,563 - 2,761,563 3,112,909 351,347 1.03 12/31/2034 - 2,761,563 2,761,563 - 2,761,563 3,417,363 655,800 1.06 12/31/2035 - 2,761,563 2,761,563 - 2,761,563 3,730,949 969,387 1.09 12/31/2036 - 2,761,563 2,761,563 - 2,761,563 4,053,943 1,292,381 1.13 12/31/2037 - 2,761,563 2,761,563 - 2,761,563 4,386,628 1,625,065 1.16 12/31/2038 - 2,761,563 2,761,563 - 2,761,563 4,729,292 1,967,730 1.19 12/31/2039 - 2,761,563 2,761,563 - 2,761,563 5,082,237 2,320,674 1.23 12/31/2040 40,000 2,761,563 2,801,563 - 2,801,563 5,445,770 2,644,207 1.26 12/31/2041 130,000 2,759,563 2,889,563 - 2,889,563 5,820,209 2,930,646 1.28 12/31/2042 220,000 2,753,063 2,973,063 - 2,973,063 6,045,881 3,072,818 1.29 12/31/2043 320,000 2,742,063 3,062,063 - 3,062,063 6,222,523 3,160,460 1.29 12/31/2044 430,000 2,726,063 3,156,063 - 3,156,063 6,404,595 3,248,532 1.29 12/31/2045 545,000 2,704,563 3,249,563 - 3,249,563 6,588,629 3,339,067 1.29 12/31/2046 670,000 2,677,313 3,347,313 - 3,347,313 6,781,463 3,434,150 1.29 12/31/2047 805,000 2,642,138 3,447,138 - 3,447,138 6,977,675 3,530,537 1.29 12/31/2048 950,000 2,599,875 3,549,875 - 3,549,875 7,182,206 3,632,331 1.29 12/31/2049 1,110,000 2,550,000 3,660,000 - 3,660,000 7,391,990 3,731,990 1.29 12/31/2050 1,275,000 2,491,725 3,766,725 - 3,766,725 7,604,280 3,837,555 1.29 12/31/2051 1,455,000 2,424,788 3,879,788 - 3,879,788 7,826,644 3,946,857 1.29 12/31/2052 1,650,000 2,346,581 3,996,581 - 3,996,581 8,056,361 4,059,780 1.29 12/31/2053 1,860,000 2,257,894 4,117,894 - 4,117,894 8,291,028 4,173,134 1.29 12/31/2054 2,085,000 2,157,919 4,242,919 - 4,242,919 8,533,560 4,290,642 1.28 12/31/2055 2,320,000 2,045,850 4,365,850 - 4,365,850 8,781,889 4,416,039 1.28 12/31/2056 2,575,000 1,921,150 4,496,150 - 4,496,150 9,039,265 4,543,115 1.28 12/31/2057 2,855,000 1,779,525 4,634,525 - 4,634,525 9,303,955 4,669,430 1.28 12/31/2058 3,150,000 1,622,500 4,772,500 - 4,772,500 9,579,545 4,807,045 1.28 12/31/2059 3,465,000 1,449,250 4,914,250 - 4,914,250 9,859,640 4,945,390 1.28 12/31/2060 3,805,000 1,258,675 5,063,675 - 5,063,675 10,148,471 5,084,796 1.28 12/31/2061 4,165,000 1,049,400 5,214,400 - 5,214,400 10,445,286 5,230,886 1.28 12/31/2062 4,550,000 820,325 5,370,325 - 5,370,325 10,754,659 5,384,334 1.28 12/31/2063 4,965,000 570,075 5,535,075 - 5,535,075 11,071,179 5,536,104 1.28 12/31/2064 5,400,000 297,000 5,697,000 - 5,697,000 16,661,269 10,964,269 1.74 Total:50,795,000 91,535,894 142,330,894 8,284,688 134,046,206 250,681,516 116,635,310 Projected $1.6M out-of-pocket exposure Preliminary; subject to change. $25M Equity – Projected Net Debt Service (COPs) 83 pipersandler.com |20 Disclosure 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 offered through separate investment advisory affiliates. © 2025 Piper Sandler Companies. 800 Nicollet Mall, Minneapolis, Minnesota 55402-7036 84 pipersandler.com |21 West Middle Creek Summary 85 pipersandler.com |22 How are our goals aligned to West Middle Creek? Strategic Priorities for the Town of Vail 1. Create a strong community and create affordable housing opportunities • Specific Goals: 1000 new homes by 2027 •Housing is infrastructure Goal supported by the following: •2025 Housing Needs Assessment •Vail population declined by 487 residents from 2010 to 2022 (9.3%). This caused a lose of 234 households in the Town •Simultaneously Vails median age increased from 35 to 49.1 •Eagle County’s population declined by 0.5% between 2020 and 2023 •WMC = 268 UNITS / 424 BEDS 2. Support our Workforce 3. Provide an Authentic Vail Experience 4. Transportation 5. Environmental Sustainability 86 pipersandler.com |23 What's the impact of Population Change to Vail •If Vail does not achieve its housing goals more employees may choose to increasingly work and live down valley or somewhere else completely. Service quality is impacted •We have the service capacity (with a few exceptions) to support new residents planned at WMC and Timber Ridge (1000 or so residents) •A resident can spend locally on average $25,000-$40,000 per year which could have an impact of $25,000,0000 per year). (Estimated). More year-round residents supports a more year- round economy. •Sense of community is impacted 87 pipersandler.com |24 SUMMARY OF CONSIDERATONSWEST MIDDLE CREEK •Big Project Physically: Dirt movement, large retaining walls, Significant Building. Qualified team, Shaw managing both Timber Ridge and West Middle Creek, TOV has managed multiple large projects at one time, 2 EIRs, DRB and PEC approval have occurred. Location is within walking distance of the Village and Lionshead. •Material & Labor Escalation and Tariff Contract has contingencies and allowances to reduce risk. Shaw will buy out project as soon as possible. Tariffs are still risk. Material costs will most likely go up with future Tariffs. Labor costs are managed under the GMP. •Cost of Money We can’t predict interest rates an have a 10-year call period. We have provided a plan to reduce spending and save for contingencies associated with future debt service. Significant new projects will be limited in the future. •Timing We can’t time this project precisely around interest rates since it will take 3-4 months to reboot the projects with new GMP, and financial documents. •Housing Goal There are other small projects in the Town and a potential regional collaboration in Eagle Vail (State Land Board) to build housing. However, this is the last large parcel TOV controls to achieve our housing goal of a 1000 new units by 2027. 88