HomeMy WebLinkAboutConstruction Use Tax Email 010612
Warren Campbell
From:Dominic Mauriello <dominic@mpgvail.com>
Sent:Tuesday, January 10, 2012 10:26 AM
To:Warren Campbell
Subject:Re: Strata Project
Hi Warren:
I wanted to check back in with you on this issue. Do we need to meet and review this together? I think George
needs to be there since he was significantly involved the last go around. Let me know.
Dominic F. Mauriello, AICP
Mauriello Planning Group, LLC
PO Box 4777
2205 Eagle Ranch Road
Eagle, Colorado 81631
970-376-3318 cell
www.mpgvail.com
On Jan 6, 2012, at 11:39 AM, Warren Campbell wrote:
Dominic,
In reviewing the history of Strata when it was resubmitted a few weeks ago here is what I found and the result of my
research (below in italics). Resolution 6, Series of 2010, held all approvals that were in effect in stasis based upon their
most recent approvals. Whatever regulations that applied at the time of the review and approval would be in
effect. The Resolution references PEC 080028 and 080030 which were submitted and approved after the effective date
of the Construction Use Tax Ordinance. I do not read in Resolution No. 6 that it waives the use tax. Attached is a copy
of the January 19, 2010, staff memo to Town Council with the three options you referenced. I do not see that Option 1
included an exemption of the construction use tax. My understanding was that Option 2 was a suggestion that the use
tax be applied to projects that had approval prior to the extension ordinance, but had their entitlements prior to the
effective date of Resolution No. 6. My memory was certainly fuzzy on all these events, but this is what my research has
found. It is possible I am unaware or not recollecting a piece of this history. Let us know your thoughts on this
information.
The following is a time line for the Strata project and the Construction Use Tax regulations.
Strata submitted as Fogata on May 15, 2007 and received PEC approval on October 22, 2007 (PEC070027 & 0028) of a
major exterior alteration and CUP for a parking club. DRB approval was granted on November 7, 2007.
Construction Use Tax, Ordinance No. 37, Series of 2007, was approved on second read reading on December 17, 2007
thus becoming effective on January 1, 2008. Section 2-8-3A, Imposition and Rate of Tax, Vail Town Code, states that the
tax will apply to all projects that the tax shall apply to a project which has not received final approval on “all” required
applications for development review prior to January 1, 2008. See below:
A. There is hereby imposed a use tax on the privilege of using or consuming within the town construction and
building materials purchased at retail inside or outside the town on or after January 1, 2008; provided that any
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construction and building materials used or consumed on a project which has received final approval on all
required applications for development review prior to January 1, 2008, shall not be subject to the use tax
imposed by this chapter. If any approval expires by its terms after January 1, 2008, such application for
development review shall then be subject to the use tax imposed by this chapter.
Strata submitted amendments to their major exterior alteration (change unit type composition) and CUP (reduce number
of parking spaces in the parking club) approvals on May 12, 2008 (PEC080028 & 0030) and received approval from the
PEC on June 9, 2008.
I believe the amendments submitted on May 12, 2008 and approved on June 9 cause this development to be responsible
for the construction use tax of approximately $1.9 million
Please let me know if you have any questions.
Sincerely,
Warren
From: Dominic Mauriello [mailto:dominic@mpgvail.com]
Sent: Thursday, January 05, 2012 4:59 PM
To: Warren Campbell; Martin Haeberle
Cc: Allison Kent; Axel Russell; Rocky Cortina
Subject: Strata Project
Hi Warren and Martin:
I am writing you on behalf of the ownership of the Strata project.
As you may be aware, the Town Council approved Resolution No. 6, Series of 2010 which extended the
approvals for the Strata project thereby exempting the project from the Use Tax and the changes in the
employee housing ordinances. I have also attached the staff memo to the Town Council which also helps to
refresh all of our memories about the intent of the ordinance. The memo very clearly shows that the Town
Council approved option #1 with a modification to the extension period from 12 months to 18 months.
Option #2 that was presented, but not selected by the Town Council, was to include a provision requiring that
the use tax be applicable to the projects subject to the extension. This option was not selected as is evidenced
by the lack of a provision requiring the use tax to be paid.
Therefore, the use tax is not applicable to the Strata project.
If necessary, I am able to also provide the video of the Town Council hearing where this was all discussed.
Please call me if you have any questions.
Thanks,
Dominic F. Mauriello, AICP
Mauriello Planning Group, LLC
PO Box 4777
2205 Eagle Ranch Road
Eagle, Colorado 81631
2
970-376-3318 cell
www.mpgvail.com
<Extension of Approvals Worksession Memorandum 011910.doc>
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