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HomeMy WebLinkAboutTown of Vail 2008 Year-in-Review FOR IMMEDIATE RELEASE December 19, 2008 Contact: Stan Zemler, 479-2105 Dick Cleveland, 479-1860 Vail Town Manager Vail Mayor TOWN OF VAIL 2008 YEAR-IN-REVIEW VAIL TOWN COUNCIL ADDRESSING ITEMS OF COMMUNITY INTEREST (Vail)—After identifying three areas of strategic focus during a goal-setting session last January, the Vail Town Council brings 2008 to a close with significant progress in laying the groundwork for Vail's continued success as a resort and community. An 18-month work plan was developed during the year that outlines specific initiatives to address the town's three priorities: 1) Housing; 2) Transportation/Parking; and 3) Environment. As the year was coming to a close, heightened levels of concern emerged as the community joined together to create new strategies and alliances to help weather uncertain economic conditions following years of robust growth. A list of accomplishments and activities of community interest are presented below in the Town of Vail's 2008 Year-in-Review. 3 AREAS OF STRATEGIC FOCUS HOUSING Regulations Clarify On-Site Employee Housing Preference • In May, the Town Council modified the town's year-old employee housing regulations to clarify their preference for on-site housing. In this case, at least half of the required housing must be provided on-site as of May 30, 2008, for all new construction and demo-rebuilds. Up until the change, developers could choose any method or combination of inethods to meet a project's employee housing requirement, including on-site; off-site within the town; a fee-in-lieu payment; by the conveyance of on-site property to the town; or by conveyance of off-site property within Vail's boundaries to the town. On-site housing was determined by the Town Council to be the most beneficial option because it provides the most reliable delivery of employee housing simultaneous with the new demand. In addition, it reduces impact on the town's infrastructure and offers the most environmentally friendly location. Developers are required to provide housing for 20 percent of net new employees generated by new commercial development and 10 percent of net new square feet for residential projects located in the designated zone districts. Future development projects including the Ever Vail development will be subject to the new requirements. Housing Strategic Plan Adopted • Adoption of Vail's Employee Housing Strategic Plan took place in September following months of research and information-gathering. The plan addresses policies, regulations, funding sources and public and private development opportunities to meet a goal of housing at least 30% of Vail's workforce within the town boundaries. The plan contains specific actions for implementation over the next five years. First Use of Housing Fee-In-Lieu Fund • In October, proceeds from the town's new housing fee-in-lieu fund were used for the first time to help purchase two housing units in Vail. By then, the town had collected $417,000 in its housing fund. Another$100,000 from the town's ongoing housing buy-down program was added to the balance for a total 1 purchase price of$290,000 and $309,000, respectively, for the two Gore Range Condominium units in West Vail. The purchases increased the town's deed restricted housing inventory to 657 units. Of those, the town controls 44 units as rental for employees living in the town. Since initiating its buy-down program in 1999, the town has purchased 8 units in which a property is purchased on the open market, followed by the placement of a deed restriction on the property. Once the deed restriction is in place, the property is sold to a qualified applicant at a subsidized price to keep the unit affordable for buyers. Bell Tower Housing Swap Sets Stage for Employee Housing Unit Exchange Policy • After agreeing to release two deed restricted employee housing units at the Bell Tower building in Vail Village in exchange for a substantially larger deed restricted unit at the Altair Vail Inn, 4192 Spruce Way in East Vail, the Council set its sights on approving a town wide exchange policy. Following recommendations offered by the Vail Local Housing Authority, the Council gave preliminary approval to create an employee housing unit exchange program to satisfy dual needs in the community. The purpose of the deed-restriction exchange program is to allow certain owners of deed-restricted employee housing units to exchange their existing deed-restricted rental unit for another for-sale unit elsewhere in the Town of Vail. The program applies to all non-appreciation capped, deed- restricted employee housing units in the town that are attached to a private residence and are not required by the town's zoning regulations. The goal is to generate the greatest number of occupied employee housing units throughout the community. Until now, owners of many of the deed-restricted units had no incentive to do anything other than to leave their units unoccupied. The new exchange policy provides ample incentives for homeowners to increase the value of their property while contributing to the town's employee housing goals. Adoption of equitable exchange rates for the properties was the last course of action required for approval with consideration taking place in December. The Altair Vail Inn unit, meanwhile, was sold to a buyer on the town's master resale lottery list for $178,650. It was originally purchased by the town for$420,000, which represents a buy-down subsidy of$241,300 to keep the deed-restricted unit affordable in the future. The unit was priced to be comparable with a Vail Commons unit, per square foot, a price which has proven to remain affordable to local employees. Master Plan Update for Chamonix Property • Several key decisions were made during the year as the master planning process for the town-owned Chamonix property in West Vail awaits Town Council approval. The largest undeveloped site remaining in Vail has been identified to meet the critical community needs of a West Vail fire station and employee housing. After identifying 11 development goals and design parameters, the Council approved a medium density option that would place approximately 58 dwelling units on the site. The property has since been rezoned from the Two-Family Primary/Secondary Zone District to the Housing District, while the adjacent former Wendy's restaurant site has been rezoned from the Commercial Core 3 Zone District to the General Use Zone District to accommodate a fire station. Construction cost estimates for the proposed dwelling units are currently being confirmed to determine if the project can be delivered for the area median income range Town Council has chosen to target. If the estimates are favorable, an amendment to the Chamonix Master Plan will be presented to the Planning and Environmental Commission and Town Council for approval. This is anticipated to occur in the coming weeks. Also, a request for 2 proposals for architectural and engineering services is currently being developed for the West Vail fire station. It is anticipated that an architectural firm will be chosen early in 2009 to design the new fire station. Developers Eye Timber Ridge for Housing Solutions • The redevelopment of Timber Ridge, the 198-unit apartment complex owned by the town, was the focus of much attention during the year as the Town Council pursued several courses of action. In January, the Council attempted to negotiate a redevelopment agreement with Open Hospitality/Hillwood Capital Partners but voted in March to discontinue talks following an impasse. At the time, most council members said they would be unwilling to sell the land to the developer as proposed. Additional complexities were identified that caused the council to express concern over the long-term affordability of the rental rate structure and the overall financing of the project. The proposal had included the construction of 316 units for a total of 1,264 deed-restricted beds. Timber Ridge was built in 1980 and is the largest rental development in Vail. It was purchased by the town for $20 million in 2003 to preserve the property as affordable rental housing for local employees. Then in April, the Town Council voted to form the Timber Ridge Redevelopment Advisory Committee to help establish the framework for redevelopment parameters to be used to evaluate proposals for redevelopment of the property. Based on the Committee's recommendations in November, the Town Council directed the town manager to launch a Request for Qualifications (RFQ) process to select a development team for half of the 10-acre complex, after rejecting a suggestion by the town manager to negotiate exclusively with Vail Resorts. Six redevelopment goals were presented by the Timber Ridge Redevelopment Advisory Committee and adopted by the Town Council: the town should maintain ownership of the land; the project should be phased; the first phase should consist of affordable deed-restricted rental beds; a minimum of 600 beds should be provided in the first phase; the town's debt should be eliminated on the 5.04 acres being redeveloped; and deed restrictions should stay with the project and not be available to fulfill developers' employee housing requirements. The RFQ was released on Dec. 18 with proposals due Jan. 29, 2009. Housing lottery applications for TOV Master Purchaser List • For the seventh year, the town created a TOV Master Purchaser List for housing lottery applications to streamline purchases. The 2008 list included 18 potential purchasers. To date, there has not been a new opportunity to purchase a unit. Resales have historically occurred in the late spring and summer months. ENVIRONMENT Vail's First-Ever Environmental Sustainability Coordinator Hired • In September, Kristen Bertuglia was welcomed as Vail's first-ever environmental sustainability coordinator. The position was created after input from both residents and the Town Council indicated environmental stewardship should be a top priority for the town. Vail Environmental Sustainability Plan Adopted • As Vail's new environmental sustainability coordinator, Bertuglia will be implementing a long list of actions associated with a new Environmental Sustainability Plan which was adopted by the Town Council in December. The plan identifies six goals: solid waste stream reduction and recycling; energy efficiency and green building; ecosystem health; sustainable economic and social development; public education and communication; and transportation. 3 Environmental Events Invite Community Participation • Three community events were sponsored during the year: o Spring Clean-Up Day The community collected 8 tons of material during the annual Clean-Up Day which had to be rescheduled for the first time in recent memory due to snow. The town reinstated a $25 donation that was awarded to one of 42 eligible non-profits for each of the 125 volunteers who participated. o Get the Lead Out Electronics Recycling Event Spring cleaning continued in June with an electronics recycling event, sponsored by the town and the Eagle Valley Alliance for Sustainability. The activity included the shredding of 3,500 pounds of paper and the collection of computers and other electronics. o Free Recycling of Old Skis, Snowboards, Boots and Poles In November, the town partnered with Vail Sports, Vail Resorts and SnowSports Industries America for recycling of unwanted ski and snowboard gear. Recycling Center Improves • Installation of a cardboard compactor at Vail's recycling center in September was completed and is already paying off. Compacted cardboard improves efficiency because it reduces the need for cardboard hauling and related fuel and energy costs. The device is the first compactor of its type available for public use within the county. Noxious Weeds Campaign • Work to remove noxious weeds from Vail's public lands continued. Treatment methods included hand-pulling, cutting and herbicides. The town is responsible for treatment on 250 acres of open space, along 32 miles of residential roadways, 11 miles of frontage road areas, 12 miles of recreation paths and in natural areas of Vail's parks. The town also offered free on-site consultations to help property owners and residents identify noxious weeds growing on their property. Lighting Ordinance Approved • In November, Council approved an ordinance amending Vail's lighting ordinance. Key components include adherence to the Dark Skies Initiative guidelines and recommendations for energy efficient lighting fixtures. Holiday Lights go Green • Vail's holiday-tree decorations were transformed during the season with the conversion of traditional incandescent light strands to LEDs (light emitting diode). The energy-efficient lights were used to string more than 25 miles of lights, including Vail's roundabouts, plazas and other public spaces. The lights will use an estimated 75 to 80 percent less energy than in previous years. Biomass Heat Plant Feasibility • The town continued to explore the possibility of developing a biomass heat plant in Vail. In these discussions it was made clear by energy experts that the system the town uses for melting snow was designed and is being operated as a very energy efficient system. Employee Environmental Focus Group • The Town of Vail Employee Environmental Focus Group (EFG), which began in 2006 and represents a cross-section of departments, continued its pursuit of identifying new ways to save energy, reduce waste, increase efficiency and reduce environmental hazards. The group began by focusing on turning off lights 4 and computers when not in use, switching to eco-friendly food and beverage service and cleaning products and implementing a spill prevention system. Public Works also now uses waste oil from fleet maintenance to heat the Public Works shops. The group is working with the town's environmental team to increase recycling in town facilities and villages, promote paper and waste reduction, implement a no idling policy, increase education through signage and set up workshops and brown-bag lunch seminars on sustainable practices. The group has also begun work to identify ways to achieve a 5% fuel reduction in 2009 by promoting combining trips and using an appropriate vehicle for the job. TRANSPORTATION/PARKING Council Passes on North Day Lot Transit Center • Citing the high cost involved in its construction, site constraints and an uncertain economy, the Town Council decided to withdraw any further consideration of building a transit center on the North Day lot in LionsHead. The Council had been presented with conceptual drawings and cost estimates for an $18.6 million transit facility that would have been added to a plan developed by Vail Resorts to build 120 housing beds and nine skier drop off spaces on the company-owned property. The project is needed to fulfill a requirement tied to development of the Arrabelle at Vail Square. The decision enables Vail Resorts to continue through the town's development review process with a revised site plan. Parking • Several circumstances put the town in a difficult position as demand for public parking spaces exceeded supply during the year. This happened 48 times during the 2007-08 winter season, causing the Town Council to ask Vail Resorts to assist in the development of a contingency plan to offset potential parking impacts related to the newly announced Epic Pass. It was during the month of June, however, that parking shortages caused the town to implement summer management strategies for the first time in history to ensure adequate parking for guests while providing equitable parking opportunities for residents, merchants and employees. A pilot program was launched that capped the number of early morning spaces in the Village parking structure with additional spaces opening up later in the morning for visitors and later-arriving employees. Vail Resorts also contributed to the solution by creating a 180-space temporary parking lot near Golden Peak which was assigned for use by Manor Vail construction workers. During the fall, winter parking rates and related policies were approved by the Town Council as recommended by the Vail Parking Task Force. The goal of the Task Force was to identify expanded parking options and additional transportation management strategies to limit the number of overflow parking days on the frontage roads during the winter season. The recommendations included increases in mass transit as well as increased bus stops along the South Frontage Road for use during peak times. A proposal to create a temporary parking lot on the Chamonix property was rejected by the Town Council due to neighborhood opposition. As an alternative, the town began working on other ways to redistribute outlying parking for use by construction workers, including vanpooling and use of private parking lots to accommodate construction worker carpooling. While these proposals are short-term, the Council has established a goal to address the parking situation with selection of the first phase of a permanent parking expansion. This will include evaluation of Ford Park as one of the proposed sites for parking. During its most recent 5 parking discussions, the Council confirmed a $4.3 million parking commitment from Vail Resorts offered in 2003 has no expiration date. CDOT Initiatives on Interstate 70 • The Town of Vail worked to enlist the support of the Colorado Department of Transportation which invested in significant improvements along the Interstate 70 corridor. Among them: o An overlay of I-70 from Dowd Junction to the East Vail exit was completed during the summer. At the request of the town, all work took place in the evenings to avoid long traffic delays encountered during the 2007 construction season. The overlay consisted of a smaller aggregate pavement to create less road noise. Recent noise measurements show the new surface has reduced highway noise by an average of 2 decibels compared to noise measurements taken in 2006. The project also included construction of a chain down station on westbound I-70 at mile marker 179. o A noise berm along I-70 adjacent to the Bald Mountain neighborhood continued to take shape when 15,000 cubic yards of traction sand were added to the existing berm during the year. The ongoing project is collaboration between CDOT and the Town of Vail. The berm is designed to be 44,000 cubic yards in size. Town of Vail engineers are working on a drainage design for yet another noise berm west of the existing berm. o A construction project to install a fiber optic network along I-70 was extended from the west side of Vail Pass to the Town of Vail shops across from the golf course as a result of a partnership between the town, CDOT and Eagle County. The 9-mile extension enables the town to expand its communication capability in managing closures of I-70 at least one year ahead of the original schedule. The network allows the town to view in real time and control existing and future I-70 cameras as well as having access to variable message signs from Denver to Grand Junction. o Following a record 43 closures of Vail Pass during the winter, including a 22-hour closure in February and a fatality associated with a 60-car pileup in March, the town worked with CDOT to develop an incident management plan that enlists the help and cooperation of multiple agencies along I-70 from Dotsero to Vail. The goal of the new plan is to reduce gridlock in Vail and other areas that have historically been impacted by the prolonged highway closures. A major component of the plan requires eastbound semi-trucks to exit at Dotsero during prolonged closures of Vail Pass with variable message signs directing other vehicles to use exits farther west when Vail becomes "full." The plan represents a new level of cooperation among local and state agencies. o CDOT investments grew to more than $3 million in improvements along the I-70 corridor with 14 new skyline variable message signs that offer expanded messaging capability; installation of a new gate at the Main Vail eastbound on-ramp; and new electronic speed limit signs at approaches to the eastbound chain-up station and westbound chain-down station that will lower the speed limit to 55 mph when the chain law is in effect. CDOT has also arranged for vendors to provide roadside assistance for truckers who need help with their chain-up requirements. East Vail Vehicle Placards • To improve access to East Vail neighborhoods during I-70 closures, East Vail vehicle placards were introduced by the police department. The placards are to 6 be displayed by those traveling to neighborhoods east of Aspen Lane to help facilitate the flow of local traffic when roadblocks are established on the South Frontage Road near Ford Park. Loading and Delivery • In November, the Council approved a 60-day trial period beginning Jan. 9, 2009, that will restrict the amount of time allowed for on-street deliveries in Vail Village now that a new loading and delivery facility is available for community use at Mountain Plaza. In LionsHead, public loading and delivery bays opened during the summer for use at the Arrabelle at Vail Square. The town is an ongoing partner in both operations. Rocky Mountain Rail Authority • The town was an active participant in the Rocky Mountain Rail Authority during the year. The authority is undertaking a high speed rail feasibility study for Colorado, which includes a route along the I-70 corridor from Denver International Airport to Grand Junction. The study will be completed in the summer of 2009. Funding has been provided by the Colorado Department of Transportation and the 40-plus member agencies, including the Town of Vail. I -70 Collaborative Effort/Coalition • Also during the year, the town of Vail participated in the Federal Highway Administration and Colorado Department of Transportation Collaborative Effort which is a 27-member group representing varied interests. The group was tasked with reaching consensus on a recommended transportation solution for the I -70 mountain corridor. The recommendation for the corridor is a multi-model solution including non-infrastructure components, a commitment to evaluation and implementation of an Advanced Guideway System (AGS) and highway improvements. Meanwhile, members of the I-70 Coalition undertook a transit land use plan to assist the corridor communities with land use planning for transit stations and transit oriented development along the corridor. This land use plan will be completed in early 2009. In addition, the I-70 Coalition hired a travel demand project manager to develop and implement travel demand strategies identified by the coalition. ECONOMIC DEVELOPMENT Addressing the Volatile Economy • With the world economy becoming more unpredictable than ever before during the fourth quarter of the year, the community took unprecedented steps to retain its competitive edge through increased partnerships and alignments never before seen in Vail. Following a decision by the Vail Town Council to contribute $550,000 to supplement the winter marketing campaign led by Vail Resorts, representatives from the lodging, retail and restaurant sectors, more than 100 in all, eagerly joined the "Vail. All the Love." campaign to increase multi-night stays for Front Range pass holders and loyal customers. The winter marketing push was an outgrowth of a series of economic stimulus ideas that had been sponsored by community and industry leaders to address the soft economy, with oversight by the Vail Local Marketing District Advisory Council. In October, a town-sponsored panel discussion moderated by Town Manager Stan Zemler featured comments from Rob Katz, chief executive officer of Vail Resorts; Dick Cleveland, mayor; Kent Logan, a former council member and retired investment banker representing Vail Citizens for Action; and Ralf Garrison, founder and senior analyst of MTRiP, the Mountain Travel Research Program. 7 Economic Sustainability • A long-term strategy for Vail's economic success was developed during the year and approved by the Town Council. The Economic Development Strategic Plan includes six goals: 1) Build a strong relationship between the Town of Vail and the Vail business community; 2) Increase the Town of Vail's economic activity as measured by sales tax revenue to, at a minimum, keep pace with annual inflation; 3) Focus on building a year-round economy; reduce economic seasonality by growing the summer at a rate greater than the winter economy; 4) Provide input to support a quality workforce delivering world-class service to positively impact Vail's economy; 5) Provide input for sustaining, upgrading and maintaining Vail's capital assets as it relates to sustainable economic health; and 6) Support the stimulation of diversity of services and businesses located in the Town of Vail. The plan was developed by the town's new Economic Development division with help from the Vail Economic Advisory Council, Vail Local Marketing District Advisory Council, Commission on Special Events and Planning and Environmental Commission. • A new economic indicator was developed with introduction of the Same Lodge & Store Sales Comparison report. In reviewing the hotel occupancy patterns and sales tax trends, the most notable result showed businesses in LionsHead with significant gains in sales tax collections during the most recent ski season while business in Vail Village was flat. • Other indicators that are used to track Vail's economic sustainability showed signs of weakening during the fourth quarter of 2008. Although sales tax collections are on target to meet the full-year budget, September and October were down from the record collections of 2007. A slowing of construction and real estate activity is noticeable in construction permit fee revenue and real estate transfer tax collections where transactions not related to redevelopment projects have fallen significantly. • In November 2007, residents passed a 4 percent construction use tax to diversity the town's tax base and provide a new source of revenue for capital projects. The new tax is expected to generate approximately $600,000 of revenue in its first year. • A plan to refinance $6.3 million in town debt became stalled in October with the collapse of the financial markets. However, the bond sale was successfully completed in December when the town refinanced at an average rate of 2.7 percent compared with 4.5 percent on the old bonds. Investment bankers have estimated a net savings of$171,000 in interest payments over the next four years. • In September after hearing Vail Valley Medical Center CEO John Cassin describe the hospital's preliminary intention to relocate many of its services to a larger campus outside the town's boundaries, the Town Council formed a committee to explore what could be done to retain the hospital's presence in Vail. The work is to include a study of the hospital's economic impact on the community. Redevelopment Milestones • Five major development projects were completed during the year to include: Manor Vail, valued at $50 million with 15 new units; Arrabelle at Vail Square, valued at $120 million with 67 dwelling units and 85 accommodation units; One Willow Bridge, valued at $22 million with 10 dwelling units and 12 fractional fee units; Vail Mountain View Residences, valued at $34 million and 18 dwelling 8 units; and The Willows, valued at $25 million with 9 dwelling units, 9 fractional fee units and 5 accommodation units. Vail's Front Door (Mountain Plaza) is almost complete, and is expected to be finished in early 2009. Also under construction are Solaris, the Four Seasons Residences, the Ritz-Carlton Residences and the Landmark Condominiums. • Meanwhile, ground was broken on two major projects in 2008 to include Lions Square Lodge North, to be completed in 2010 and the Rucksack to be completed in late 2008. In addition, the West Meadow Drive streetscape project was initiated in the fall with drainage improvements, a new asphalt roadway, new street lights and sidewalks. Once complete, the project will serve as a critical link between Vail Village and LionsHead. • Strata, the redevelopment of the Lionshead Inn and the Fabulous Vail Glo Lodge, was approved in 2008 and is pending construction. Conference Center Funds • In February, the Town Council voted to defer a ballot question on reallocation of the conference center funds until at least 2009. A November 2005 election rescinded a .5 percent sales tax and a 1.5 percent lodging tax that had been put into place in 2002 to build and operate a conference center. All future uses of the estimated $10 million must be authorized by a vote of Vail's electorate. Special Events • The Vail Commission on Special Events allocated $765,206 in funding for 25 events in 2008 including the Teva Mountain Games at Vail, Snow Daze, Spring Back to Vail, Oktoberfest, Vail America Days, the Vail Film Festival, Vail Farmers' Market and Gourmet on Gore. In addition, the Council contributed $294,250 in cash sponsorships to several "culturally designated events," including the Bravo! Vail Valley Music Festival, the Vail International Dance Festival, Hot Summer Nights, Bud Lite Street Beat Concert series and the Vail Jazz Foundation, as well as providing for over$50,000 for in-kind support for a number of events in the form of traffic control, police service and Public Works assistance. It is estimated that special events attracted more than a half a million visitors to Vail in 2008. • There was disappointment following an announcement by the Vail Valley Foundation that it was forced to cancel the inaugural Colorado Stage International Cycle Classic which had been scheduled for August 22-24 due to lack of a presenting sponsor. The event required a budget of$2 million; the town had committed $150,000. Colorado Stage was to be a three-stage cycling race to include a 135-mile road race from Breckenridge to Beaver Creek, a 72-mile circuit race in and around Vail Village and a 10-mile individual time trial from Vail Village to East Vail. It is anticipated that the economic conditions will improve to allow the event to occur in 2010. • Later in the year the Vail Valley Foundation announced it had purchased the rights to the Teva Mountain Games, ensuring this major event will remain in Vail into the future. The town has been a leading sponsor of the games through its special events funding. • In February, the Town Council approved a resolution establishing a Special Business Promotion Permit process to accommodate requests from the business community. This permit allows individual businesses to hold promotional events that include activities outside of day-to-day business. Resort Enhancements • The town's Art in Public Places program elevated its programming during the year with winter and summer activities to complement Vail's many cultural 9 offerings. In January there was the debut of the 2009 Triumph Winterfest Verdant Meadows art event which featured 17 outdoor ice sculptures along the Gore Creek Promenade. Later in the month artists from across the country came to Vail to cast iron and bronze at a free public outdoor event that drew dozens of fascinated spectators for the "Heavy Metal Weekend." Also, free walking tours were held during the winter and summer to profile some of the well known public art sculptures in Vail. In June artists joined in the celebration of the Betty Ford Alpine Garden's 20t" Anniversary with an outdoor painting competition. Also during the year, AIPP received approvals for installation of an entry feature on East Meadow Drive. The entry feature is comprised of two 18' high bronze and steel sculptures that will flank East Meadow Drive near the intersection of Vail Road. • A grand opening for Vail's Whitewater Park was held in June following installation of a computer controlled system that automatically adjusts water levels so freestyle kayakers can enjoy the park for a longer duration in the summer. The venue is among the growing number of athletic events featured during the Teva Mountain Games. • The LionsHead Skatepark returned for a second year in June. The temporary facility included a half-pipe, pyramid, multiple ramps, transitions, rails and banks, plus a street course for younger or less experienced riders to hone their skills. The park was disassembled and ended for the season in October. The park will return in the spring next year and will continue as a temporary park until a permanent location can be found. • Town officials and members of the public joined Vail Resorts at Mountain Plaza on July 3 as they unveiled The Edge, a larger than life bronze sculpture with a stunning pewter patina. Vail Resorts commissioned the $500,000 sculpture to help meet its $1 million public art obligation. Art in Public Places introduced Vail Resorts to the Colorado artist, who is well known for her skill in depicting sports figures. • After months of delays caused by complications in its design and construction, the fire and ice fountain at Seibert Circle was completed and is drawing curious spectators during its performances. The fountain is the only one of its type in the world and complements streetscape features already in place on Bridge Street, Gore Creek Drive, Wall Street, Hanson Ranch Road, Willow Bridge Road and East Meadow Drive. • In July, the town completed work on the renovation of the Katsos Ranch section of the Gore Valley Trail. The popular two-mile section of recreation path received new paving, picnic areas, and minor realignments. In addition, numerous small scale recreation path projects were completed throughout town including bridge maintenance, pavement repair and new guardrails. MASTER PLANNING Vail Village Master Plan Update • An update to the Vail Village Master Plan was approved in September by the Town Council. The update addresses the six major goals outlined in the plan, acknowledges the action steps that have been completed in keeping with the master plan and identifies the next series of action steps needed to further implement the goals, objectives and policies of the master plan. The update is a prelude to upcoming discussions on a proposal to develop a berm on the south side of the parking structure in Vail Village. 10 DEVELOPMENT REVIEW • The town processed over 1,246 building permits as of Dec. 11, exceeding $307 million in valuation, but marking the end of five consecutive years of record- breaking valuations. The highest number was set in 2007 with $400 million in permit valuations. Also in 2008, 73 Planning and Environmental Commission and 613 Design Review Board applications were processed. Major project submittals included Strata, Rucksack, Ever Vail, Chamonix, Timber Ridge and Evergreen. • More than 8,025 building inspections took place during the year to ensure Vail's construction projects are handled with the utmost attention to public safety. On any given day, as many as 33 building inspections are performed within the town. LionsHead Parking Structure Redevelopment • The proposal for a mixed-use development to be built on the LionsHead parking structure took a step forward in August with approval of the developer's project plan by the Vail Town Council. The Council also amended a development improvement agreement approved in October 2007 that gives Open Hospitality Partners/Hillwood Capital Partners until March 17, 2009, to work with Vail Resorts to address a current-deed restriction which requires the land to be used for parking. The town also has the option to grant additional extensions up to nine months beyond the March deadline to resolve the deed-restriction issue. The original agreement had required the deed-restriction hurdle to be addressed satisfactorily prior to town approval of the project plan. Council members had asked for the deadlines so as not to tie up the land indefinitely. Approval of the project plan enables the developer to submit a formal development application to the town for review by the Planning and Environmental Commission and Design Review Board at the developer's risk pending an eventual outcome on the deed- restriction. The redevelopment proposal includes 240 hotel rooms, 130 condominium residences, 25 fractional fee units, 77,000 sq. ft. retail-restaurant space, a transit center to include space for 5 ECO regional buses and 3 hotel shuttle buses, 6 underground loading and delivery bays; Visitor Information Center; and improvements to South Frontage Road and East Lionshead Circle. The Town Council has been discussing redevelopment of the LionsHead parking structure since May 2006 when it issued a request for proposals. Ever Vail • The largest and most ambitious development proposal in Vail's history began working its way through the town's development review process in December. That's when a comprehensive presentation outlining the Ever Vail project was shown to members of the Town Council, Planning and Environmental Commission and Design Review Board by the project's sponsor, Vail Resorts Development Company. The joint meeting was the first such meeting of the three boards since submittal of the Arrabelle at Vail Square development in 2004. As proposed, Ever Vail would become Vail's fifth mountain portal with chairlift access, public parking and a newly-built neighborhood offering a mix of residential and commercial space built on the nearly eleven acre property, located in West LionsHead. The plans also include a proposal to realign the South Frontage Road for additional continuity. The project is being represented as one of the largest "green" environmentally sustainable resort development 11 projects in North America. The project design has received a Platinum rating by the U.S. Green Building Council's LEED Neighborhood Development Program. The town's development review process will take many months and includes numerous phases. The initial milestones include the review of an application to realign the South Frontage Road and other vehicular and pedestrian circulation systems, consideration of an application to subdivide and reconfigure the property lines affecting the development site, and a review of an application to rezone a portion of the development site to the LionsHead Mixed Use - 2 zone district. Vail Village Parking Structure Berm Development Proposal • In February, the council voted 4-2 to allow Triumph Development to proceed through the development review process with an application to amend the Vail Village Master Plan to allow for mixed-use development on the south side of the Vail Transportation Center. The property is currently used as a berm to provide an aesthetic buffer between I-70, the parking structure and Vail Village. The interested developer, Steve Virostek of Triumph Development, had approached town officials earlier in the year with a proposal to build high-end affordable housing, retail and office space on the property. The master plan amendment proposal was later voluntarily withdrawn to allow for a town-initiated update of the Vail Village Master Plan. That update has since been completed and approved by the Town Council and Triumph has resubmitted its application which is undergoing review by the Planning and Environmental Commission. Public Art • An ordinance was approved by the Town Council in May establishing procedures for approving public art in private development. Since 2005, the town has accepted $4.1 million in public art commitments as public benefits. Examples include The Edge at Mountain Plaza, Maypole at Arrabelle, Verdant Meadows Illuminated Ice Sculptures and a contribution towards the new fountain at Seibert Circle. PUBLIC SAFETY & SECURITY Vail Valley Forest Health • For the fourth consecutive year, the town partnered with the U.S. Forest Service, the Colorado State Forest Service, Eagle County, Upper Eagle Regional Water District and Eagle River Water and Sanitation District to cut, pile and burn or remove dead and diseased lodgepole pines in areas that are most at risk for wildfire. The Vail Valley Forest Health work also includes the treatment of aspen stands to rejuvenate the forest. The town again hired a six-person seasonal wildfire mitigation crew to assist with the Forest Health effort, which was launched in 2005 in response to the unprecedented pine beetle outbreak. Nine project areas were targeted in 2008 on 233 acres of public land in and around Vail. The work included a helicopter operation in June in which 1,000 lodgepole pines were removed from water district property. The logs were trucked to a plant in Kremmling to be recycled into wood pellets. In September, the town began implementation of the first phase of a townwide inspection process to facilitate the removal of dead trees on private property. Wildfire crew members canvassed 419 properties in neighborhoods in East Vail and Intermountain that are most at risk for wildfire. Property owners who were found to have dead or diseased trees on their land were notified of a town regulation that requires removal of the hazardous trees within 30 days. If the trees cannot be removed within 30 days, a town-approved mitigation plan and schedule is required of the property owner. A 12 year-end summary presented to the Town Council in November identified 835 trees that were removed from town property. Crews also conducted 58 free FireWise property inspections, up from 18 in 2007, and began burning the first of 1,500 slash piles. Fire Staffing & Training • Four firefighters were hired by the town during the year. Three of the positions were new and represent a step toward staffing a West Vail fire station. The fourth position replaces a department vacancy, bringing the total number of department personnel to 23 full-time paid staff inembers, six seasonal wildland mitigation members and 12 resident firefighters. • Three firefighters received valuable first-hand experience in July when they joined national relief efforts in California where crews had been battling hundreds of wildfires throughout the state. Fire Incidents • Fire calls kept crews busy during the winter season. In January, firefighters were dispatched to a boiler fire on Tahoe Drive in the Highland Meadows neighborhood as well as a pool shed fire at Timber Falls Condominiums in East Vail. With the season's significant snowfall, the department found itself asking property owners and managers to make arrangements to remove hazardous ice and snow accumulations that could endanger public safety. Despite the warnings, those conditions caused natural gas leaks at the Vail Cascade Resort & Spa, the Windstream Condominiums and a duplex in East Vail, among dozens of others. Fire alarm systems installed at the newly opened Arrabelle at Vail Square in LionsHead worked as designed when a small fire in the wall of a ski valet area was discovered in February. The fire was extinguished quickly due to firefighters/employees efforts using extinguishers in the inner wall spaces that were involved. In October, an arson fire caused extensive damage to an apartment complex at the Middle Creek housing development, but was quickly extinguished by the activation of a single sprinkler head. The Thanksgiving Day holiday proved challenging due to a massive water main break that threatened several structures in the Vail Village. In December, a fire caused eight occupants to be displaced and the complete loss of a home due to an apparent unapproved installation of fireplace glass doors. Total incidents for the fire department have increased approximately 32 percent over 2007, due to motor vehicle accidents, gas leaks, false alarms, fires, etc. Police K-9 • In February, the Police Department welcomed its newest member, K-9 Star, a mixed breed of Belgian Malinois and German shepherd. She's been assisting the department in finding missing persons, tracking criminals and narcotic detection, plus she's available to assist Vail Mountain Rescue with missing person searches. Her handler is Officer Ryan Millbern. Star was rescued by a Humane Society in North Carolina and received training at the Highland Canine Training center in North Carolina. She was donated to Vail by the Paul LeBlanc Memorial Police Dog Donation program. Noteworthy Incidents • In what was determined to be one of the worst accidents on record, Vail's emergency responders joined other local agencies in responding to the scene of a 60-car pile up on Vail Pass in March. Sadly, the incident claimed the life of a motorist and caused numerous injuries. It also helped serve as a catalyst in 13 beginning the process to create an incident management plan for the I-70 corridor. (See Transportation/Parking section on page 6). • A portion of the North Frontage Road was closed, buses were rerouted and evacuations took place at the Vail Gymnastics Center and Red Sandstone Elementary School in March as police investigated a possible bomb scare. The investigation isolated the incident to a GPS tracking unit which had been attached to a vehicle. Police said the device was placed on the vehicle by a private investigator who was involved in a divorce case. The 52-year-old investigator was later arrested and charged with criminal tampering. • In the spring, residents were again asked to be diligent about keeping their garbage stored properly with bear season underway. The town's wildlife resistant container policies enacted the year before contributed to a peaceful bear season with no reports of human-bear encounters. • Tragedy struck a vacationing family in July when emergency personnel responded to the Eagle Point Resort where a 3-year-old Kansas girl had fallen into a swimming pool. The child was pulled from the pool by a guest and later transported to Children's Hospital in Denver via a Flight for Life helicopter where she died. A Vail Police investigation concluded the circumstances were accidental. • Interstate 70 was the scene of a fatal motor vehicle accident that took the life of a Fruita man in August when his westbound van hit an oil truck as the truck was attempting to use an emergency turnaround near the East Vail exit. The driver of the oil truck was later charged with careless driving causing bodily injury or death. He was working for A&S Construction Co. of Canon City on the CDOT I- 70 overlay project at the time of the accident. • A spring snowstorm endangered the safety of a police officer in May when his patrol car was struck on I-70 as it was parked on the shoulder to assist with traffic control during a Vail Pass closure. The officer was in the vehicle when it was struck by an Avon man who approached the closure at an excessive rate of speed and was unable to stop. The officer was treated and released. • There was great relief from emergency responders when no injuries were reported after a mobile construction crane toppled across the South Frontage Road in July. The boom truck had been in use at the Vail Spa Condominiums in LionsHead. Both lanes of the South Frontage Road were closed for approximately 8 hours while emergency responders worked to cut the crane's boom into pieces and remove the material from the road. Traffic was rerouted onto West Lionshead Circle during the clean up. The crane company was later cited by the Occupational Safety and Health Administration for failing to fully extend the crane's outriggers. • In September the search for a 67-year-old East Vail man ended successfully when the man was found unharmed after spending the night outdoors. More than 100 volunteers joined in the search to canvass Vail's neighborhoods before the man, who suffers from Alzheimer's disease, was found. • A record 190,000 pounds of food was collected during the Vail Police Department's eighth annual Make a Difference food drive in October. Moses Gonzales, a code enforcement officer, helped organize the drive, which resulted in a 30,000 pound increase over the 160,000 pounds collected the previous year. PARTNERSHIP & COMMUNITY OUTREACH Vail Recreation District 14 • In July, the VRD and Town of Vail defined next steps for recreational programming following what both Vail Town Manager Stan Zemler and VRD Executive Director Mike Ortiz called an historic agreement between the two organizations. The 10-year agreement outlines repairs and replacement needs for the facilities and areas including the Vail Golf Club, Tennis Center, Ford Park athletic fields and VRD Youth Services in the LionsHead parking structure. The agreement also continues to allow the VRD to operate programs and services out of the town-owned facilities. A five-year capital plan is being used by both entities to outline next steps for moving forward. Based on needs identified in the plan, the VRD will contribute 48 percent and the town 52 percent through 2012. Once capital plan items are completed, cost-share for projects is anticipated to result in an annual 69 percent contribution by the VRD and 31 percent contribution by the town. • The Town Council and Vail Recreation District (VRD) finalized master facilities lease agreements for recreation facilities owned by the town and operated by VRD (with exception of the Vail gymnastics facilities lease). The agreements signified a new spirit of cooperation between the two organizations. Peer Resort Tour • In April, a delegation from Vail headed to Park City for a peer resort visit, the first such tour since 2000. The fact-finding trip was used to learn about Vail's competition and best practices. Areas of focus included affordable housing, transportation and parking, environmental sustainability, redevelopment, wayfinding systems, recreational facilities and programs, customer service, and special events and amenities. During a report-out to the community, attendees said they were impressed with the quality of the for-sale and rental housing they toured; the positive relationship between the municipality and the ski company; and the arrangement of special events funding and coordination which is handled by the chamber. The delegation, which included representation from the Town Council, recommended continuing the trips as they were found to be valuable and enlightening. Vail Brain Bank • During the Fourth of July holiday, the town announced creation of a new outreach program designed to call upon the talents of those who are willing to assist the town on complex matters. Names, expertise and time commitments were then collected from interested volunteers. Vail Brain Bank volunteers may continue to register at www.vailqov.com. Community Picnic Series • Donovan Pavilion, Bighorn Park and Ellefson Park were the settings for the town's ninth annual neighborhood picnic series. The free summer picnics provide an opportunity to offer comments and suggestions about community issues to members of the Town Council and town staff. Vail Town Meeting • The Town of Vail Annual meeting was held for the eighth consecutive year to showcase community priorities. The winter event has become a Vail tradition with its part-business, part-social gathering format. TOWN FINANCES AND SERVICES Incremental Property Tax • With property tax revenues exceeding 2008 budget estimates by approximately $450,000 to $650,000 due to higher than estimated assessed valuations, the 15 Council on April 15 (tax day) decided to direct the unanticipated revenue into the Capital Projects Fund. Rebating was explored and rejected. In directing the revenue to the Capital Projects Fund, the council noted the community's awareness of projected shortfalls in the fund within the next five years. Property taxes totaled $4.25 million for the year, or about 8 percent of the town's total revenues. 2009 Budget • In adopting a $51 million budget for 2009, the Town Council directed the town manager and his staff to closely monitor expenditures and incoming revenue in the event additional adjustments are needed. The budget reflects a transfer of $750,000 from the General Fund to the Capital Projects Fund in recognition of the need to sustain Vail's world class infrastructure. The transfer was made possible by an $800,000 cut in the General Fund as directed by the Town Council. Street Maintenance • Asphalt overlays were completed on portions of roads in East Vail and the West Vail roundabouts. Street maintenance work also included an asphalt mill and overlay of Vail Valley Drive and asphalt patching on East LionsHead Circle and Vail Road. The East Vail Fire Station parking lot, as well as the recycle lot behind the Community Development Building, were rebuilt and repaved in 2008. Parks • In January, the town held an open house to collect community input on improvements to Red Sandstone Park. The work has been scheduled to take place in the spring of 2009. Red Sandstone is one of nine Vail parks that feature artistically inspired, custom-built play structures. In 2000 the town began the process of upgrading equipment in all its parks to meet or exceed current playground safety guidelines. Upgrades are complete in seven play areas, with Red Sandstone and Booth Creek Park remaining. Technology • The computer system in the parking structures experienced a malfunction which caused multiple credit card charges for the same transaction. Once alerted to the errors, the town staff took immediate steps to reimburse customers for the excess charges as well as any penalties incurred. A system bypass was installed to prevent future duplicate charges. • The town issued a Request for Proposals from entities interested in redesigning the town's municipal web site. The firm Mitchell &Associates was selected from among 35 proposals. The work is currently underway. Employee Retention • In August, Human Resources Director John Power reported the town would have no returning seasonal international workers (that have left the country) for the winter season due to federal government restrictions on H2B Visas. Action steps to remedy the problem included recruiting trips to Yosemite and Mesa Verde National Parks, exploring the Puerto Rican market, as well as increased web- based advertising. Contacts were also established at summer resort areas including Grand Canyon, Denali and Lake Powell for employee sharing opportunities. The labor market improved dramatically several months later as a result of the worsening economy. • Recognizing the importance of retaining municipal employees, a housing equity loan program was created for employees funded initially by $375,000 from the 2009 budget. 16 Library • Revised membership policies were introduced by Town Librarian Lori A. Barnes to encourage immediate use by seasonal residents and others. Currently there are 8,724 library patrons, including residents, seasonals and guests. The number has grown by 1,517 patrons since July 30, 2008, when there were only 7,207 patrons. Other activities during the year included a celebration of the library's 25`n anniversary, expansion of the summer reading program, introduction of a reservation system for convenient access to the library's personal computers and new program offerings for adults and families. PEOPLE NEWS • Throughout the year, 24 citizens were newly-appointed or reappointed to town boards as follows: Roland Kjesbo, William Pierce, Sarah Robinson Paladino and Susie Tjossem to the Planning and Environmental Commission; Michael Dantas, Peter Dunning and Elizabeth Plante to the Design Review Board; Cookie Flaum, Susan Frampson, James Poppell, Kathy Langenwalter and Steven DeWitt to Art in Public Places Board; Kathy Langenwalter, Rich Seth and Lynne Fritzlen to the Building & Fire Code Appeals Board; Jamie Gunion, Bob Llewellyn, Beth Slifer, Adam Sutner and Mia Vilar to the Vail Local Marketing District Advisory Council; and Kerry Donovan, Dave Chapin, Meggen Kirkham and Heather Trub to the Commission on Special Events. • The town also mourned the passing of Pete Burnett, a retired employee who had served as the town's first street and roads superintendent during his 24 years with the town. Pete was a long-time resident of Minturn. • Mark Miller, Vail's new fire chief, began his first day of employment on Jan. 8. Miller previously served as chief of the Hartford Fire Department in White River Junction, Vt. The Colorado native also spent 25 years with the Loveland Fire and Rescue Department, serving as chief from 2001 to 2005. • Town Manager Stan Zemler participated in an Urban Land Institute Advisory Panel to provide the town of Nantucket, Mass., with strategic advice regarding sustainable development for its downtown. Zemler joined seven other panelists from across the country in October for the 5-day session which included interviews with community leaders and site visits across the island. Zemler was selected to join the panel due to his expertise in the areas of economic sustainability, resort planning and environmental protection. RECOGNITION & AWARDS • The town was recognized for its construction management programs by the Colorado Chapter of the American Public Works Association. Recognition came in two categories: Engineering/construction management; and Building Code Administration. • Recipients of the Vail Youth Recognition Awards were announced in May: Tony Ryerson from Vail Mountain School and Olivia Fauland from Battle Mountain High School. • In the spring, the Town of Vail was named CIRSA's 2007 Safety Champion of the Year for the second year in a row. The award represents innovative programs in risk management. CIRSA is the Colorado Intergovernmental Risk Sharing Agency which is a cooperative public entity self-insurance pool representing 250 of Colorado's municipalities. Vail is the only Colorado agency to receive this award two years in a row. 17 • Vail received national recognition when its Windmill Project was named among the top 45 best public art works in the U.S. at the 2008 Americans for the Arts annual convention held in June in Philadelphia. Denver was the second and the only other Colorado city honored. The Windmill project was recognized as the world's largest wind-powered environmental sculpture. It was displayed in spring 2007. • The town's Wildlife Protection regulations, which require bear-proof and/or bear- resistant containers in residential and commercial areas, continued to be applauded as a model program by state wildlife officials due to its high neighborhood compliance rate of 90 percent and the lack of human-bear conflicts. As a result, the "Get a Nicer Can" campaign that was used to generate community awareness earned the International Summit Creative Award. The award was presented to Vail Police Officer Ryan Millbern, who serves as the point of contact for the Wildlife Protection program during an August council meeting. • In November, the Vail Police Department was a recipient of a Community Policing Finalist Award from the International Association of Chiefs of Police. Of the nearly 100 police agencies from across the country and world who were nominated, only three agencies, including Vail, were selected for this special recognition for departments serving populations of less than 20,000. Vail's department was honored for its community partnership to manage the New Year's Eve and Fourth of July visitors which was undertaken in 2001 after crowds grew to 10,000 mostly underage revelers. • In December, the ECO Trails Committee selected the Town of Vail to receive one of its four annual Trail Supporter Awards for the numerous upgrades throughout Vail's recreation path system over the past several years. Appeals Court Upholds Vail Horizontal Zoning Case • In October, the Colorado Court of Appeals issued a ruling in favor of the town following a lawsuit challenging the town's interpretation of its zoning code. The lawsuit had been filed by Covered Bridge, Inc., following a finding by the town that a unit within the Covered Bridge Building was a "first floor" or "street level" unit for purposes of zoning. Under the town's zoning code, buildings on Bridge Street are subject to "horizontal zoning," which restricts uses based upon the location of a unit within a structure relative to street level or grade. The plaintiff had sought to lease the unit for uses only permitted in properties situated on the second floor or above. # # # 18