Loading...
HomeMy WebLinkAbout2025-41 A Resolution Continuing the Town of Vail Timber Ridge Village Employee Housing Unit Deed Restriction Credit ProgramRESOLUTION NO . 41 Series of 2025 A RESOLUTION APPROVING CONTINUATION OF THE TOWN OF VAIL TIMBER RIDGE VILLAGE EMPLOYEE HOUSING UNIT DEED RESTRICTION CREDIT PROGRAM WHEREAS, the Town wishes to continue the Timber Ridge Village Employee Housing Unit ("EHU") deed restriction credit program (the "Program") in an effort to attract more buyers to purchase homes at the new Timber Ridge Village and bring greater value to Timber Ridge Village homebuyers and Vail community; and WHEREAS, the Program will allow Timber Ridge Village homeowners to acquire, through the purchase, EHU deed restriction credits that can be used by themselves, or transferred, sold, or otherwise assigned to another person or entity to offset a future EHU deed restriction obligation, and thereby allowing the Timber Ridge Village development site to be a receiving site for the acceptance of EHU deed restriction obligations generated elsewhere within the Town of Vail. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Town Council hereby authorizes the Town Manager to administratively amend and extend the Program, in a form approved by Town Attorney, and further authorizes the Town Manager to take any necessary step and to execute any documents required to effectuate the intent of this Resolution. Section 2. The Program shall contain, but is not limited to the following parameters. • EHU credits at Timber Ridge Village shall be acquired through a purchase of a credit. • Not more than 86,500 square feet of EHU credits shall be available for purchase by home buyers. •Individual and business owner home buyers shall be eligible for participation in the EHU deed restriction credit program. • The EHU deed restriction credit shall be purchased at the time of the closing on the original sale of each home from Triumph Development to the first purchaser. Once the original home sale has closed, the Town will no longer offer an EHU deed restriction credit for purchase on the home. • The terms of an EHU deed restriction credit shall be enumerated within the special provisions section of the purchase and sale agreement. Said terms shall be negotiated exclusively between the Town of Vail and the home buyer.Triumph Development shall administer the transaction at the direction of the Town of Vail. •The value of the EHU deed restriction credit shall be exempt from the earnest money down payment calculation of the purchase and sale agreement. • All additional net sales proceeds generated from the EHU deed restriction credit program shall be accrued to the sole benefit of the Town of Vail. The agreements executed by and between the Town of Vail, Triumph Development, and First Bank shall be amended accordingly. • Additional net sales proceeds collected from the EHU deed restriction credit program should be deposited in the Town of Vail Housing Fund to aid in the creation of additional deed restrictions through housing development, acquisitions, programs and initiatives. •The redemption period of all EHU credits purchased through the Timber Ridge Village deed restriction credit program shall expire on December 31, 2035. Any unused credit as of January 1, 2036, shall become null and void. •An EHU credit may be redeemed in full, or in part, during the redemption period. Any unused credit balance shall become null and void as of January 1, 2036. • The Town of Vail reserves the right to terminate the EHU deed restriction credit program at any time at its sole discretion. The Town of Vail, however, shall honor deed restriction credits acquired prior to the termination of the program. • To the extent feasible, the Town of Vail will implement program terms which may allow EHU deed restriction credits to be financeable through a mortgage lender. For instance, all EHU deed restriction credits shall be fully assigned to the mortgage lender without added cost with the assignability provision coinciding with the duration term of the mortgage loan. • The value of the credit to be purchased is commensurate with the terms of the deed restriction, the terms of the credit purchased, and the type of home purchased. For instance, if the credit purchased for a four-bedroom home and is to be freely assignable, transferrable, non-project specific, or without a limited sunset provision, its value is different than if the credit is purchased for a two-bedroom home and cannot be assigned, transferred, or has a limited sunset provision. •The future value of the EHU credit shall be determined based upon the provisions of the Vail Town Code adopted at the time the EHU credit is redeemed. • Recorded EHU deed restrictions or existing deed restriction obligations may be exchanged for new deed restrictions at Timber Ridge Village. • An EHU credit purchased through the Timber Ridge Village Deed Restriction EHU Credit Program, regardless of deed restriction credit terms shall not apply to an EHU exchange. • The Town of Vail Housing Department shall establish an internal accounting system and protocol for tracking and verifying deed restriction credits acquired and redeemed through the EHU deed restriction credit program for the term of the deed restriction. The accounting system shall be audited annually. Section 3. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 2 nd day of September, 2025. Travis Coggin, Mayor ATTEST: Stephanie Kauffman, Town Clerk