HomeMy WebLinkAboutEPS Proposal Of Services February 2010 �
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]anuary 29, 2010
Mr. George Ruther
Director of Community Development
Town of Vail
75 West Frontage Road North
Vail, CO 81657
Re: Fiscal Impact Analysis CrCd+-iOWl�i[-^=1�'l��-T� �`�"'�'T
Dear George: �Er�l
Thank you for calling to discuss the needs of Town of Vail related to
Fiscal Impact Analysis. We understand that the proposed Ever-Vail
development will have a significant impact on the Town's fiscal position
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- generating additiona� revenue as well as additional costs. Economic &
Planning Systems (EPS) has worked with many communities to quantify
the costs and revenues associated with a specific development proposal.
We have enabled these communities to come to resolution with the
developer, and generate mitigation terms that accurately reflect the true
costs and benefits of the proposed project.
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EPS is a full-service economic consulting firm with over 45 professional
staff and offices in Denver, Colorado and Berkeley and Sacramento,
California. Founded in 1983, the firm has a broad-based practice in land
use economics including financial modeling, market analysis, public
finance, economic impact analysis, and public-private partnerships. The
firm has worked successfully with a wide range of public and private
sector clients throughout the nation and has established a reputation for
both rigor and creativity.
Based on requests from other Colorado mountain communities that have
faced similar questions related to proposed development, we have listed
a few point5 befow that the Town should consider as it moves forward:
• Expenditures - For some services the Town provides, it will be
appropriate to use an average-cost approach to assess expenditure
attributed to the new development. In other cases, a marginal
approach is needed, as the proposed development may reach
thresholds that trigger new capital equipment, facilities, or staffing.
• Revenues - As with most Colorado municipalities, sales tax is a
Econoni;�?.P;.anr�rng Sistems,Inc
�3o r�cn srr<,�r,Suife 630 primary driver of revenue. It is expected that Ever-Vail will have a
��>n�e�, c.osn<o�-�s�? sizeable retail component, which could generate substantial revenue.
30�r_,::>3ss�;�, The Town may benefit from rr�arket research to underpin the extent of
;o�h�_,��r>;n r�x market support for additional retail, the potential for cannibalization,
� f3�rn�>>'<=y and the net impact on retail in the Village, Lionshead, and elsewhere
�.3:-�:�.���=�r�� in the Town. The market analysis should be included to develop
i'�'r=e' factors that can be used to drive the fiscal model with calibrations
www.epsys.cam that reflect realistic future perFormance.
i
Mr. George Ruther
January 29, 2010
Page 2
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• Peer Communities - EPS has recently constructed fiscal models for the Towns of Basalt,
Snowmass Village, Mountain Village, Silverthorne and Garfield County. EPS helped each of
the communities quantify the net impacts of additional development. In the case of
Snowmass Village, the development under consideration was a significant expansion to the
base village, comparable to Ever-Vail.
• Model Capacity - The model will enable EPS and Town staff to test multiple scenarios and
conduct sensitivity analyses to reflect the most likely future scenario. It can also be used to
define best-case and worst-case limits. The model shou�d be viewed as a tool to project future
conditions under a number of different assumptions and can be used interactively to
understand how different assumptions about buildout could impact the Town.
e look forward to working with you and others in the Town on this project - we enjoy the
challenges that come with fiscal assessment and would enjoy supporting your efForts to document
the net benefits attributed to Ever-Vail. After reviewing the attached project profiles from
previous efforts, please call to set up a time when we can discuss the project in greater detail.
Sincerely,
Economic & Planning Systems, Inc.
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Andrew Knudtsen �
Principal
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Town ofVail FIA EverVail 1-29-IO.doc