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HomeMy WebLinkAbout2016-1011 VLHA Meeting MinutesMinutes Vail Local Housing Authority (VLHA) October 11, 2016 at 3:00 PM Attending the meeting were members: Molly Murphy Scott Ashburn Steve Lindstrom James Wilkins Absent: Mary McDougal Town staff attending the meeting: Alan Nazzaro George Ruther Public In attendance: Lee Fabricius Nate Hall A quorum of VLHA Members being present, the meeting was called to order at 3:05 PM. Meeting Notice and Approval of minutes The Board considered the minutes sent from the VLHA Meeting held on 8/23/16. James Wilkins moved to approve the minutes as submitted. Molly Murphy seconded the motion. The motion passed unanimously. Board Updates VLHA representatives attended the Planning & Environmental Commission Meeting at which the Marriott Residence Inn development proposal was presented. They noted that the objections voiced by the public at the meeting were regarding: Shading of the main access roadway to the adjacent neighborhood by the tall structure proposed Ice accumulating on the roads Traffic generation in general Utility locations The height and length of the building were considered out of proportion to the site Discussion ensued regarding the need for projects like this to help meet the housing needs of FTE employees in Vail. The developer is proposing to include 113 Type III deed restricted employee housing rental units on site in a five story building. Due to the site constraints, the building proposed is tall, narrow and long covering a good portion of the acreage and requiring a subterranean parking structure, which will hold 365 spaces. It was noted by staff that there is a Public Meeting scheduled at 5:00 PM on October 17th at the Sonnenalp Resort. VLHA members were asked to attend if possible to show support for the project. The Board asked that a calendar reminder be sent out to all with the date, time, duration and specific location of the meeting. VLHA representatives met with a development group regarding Solar Vail Proposal. Solar Vail is 24 units of employee housing owned by the Sonnenalp Resort for use by their staff. They have approvals to expand the building to include more units. They would like to partner with the Town/VLHA to add at least 56 net new EHUs. They will be seeking a financial contribution to the project in order to accomplish this goal, possibly via the deed restriction purchase program. Discussion of Mechanics of Housing Program The discussion began with the VLHA Chair recounting that a meeting was held with the Town Attorney to discuss the legal aspects of the Deed Restriction Purchase Program. The counsel advised that there needs to be enabling legislation passed by Town Council authorizing the VLHA to act as an agent for the Town and to expend funds on their behalf. The attorney was also asked about the “criteria” needed for making those funding decisions. He advised that the VLHA come up with a list of Findings to be applied to each deal rather than a set of standard criteria. The findings would be specific to each transaction. The attorney is working on the necessary specific legal documents needed for the program, i.e., enabling legislation, the contract for purchase and sale of deed restrictions, which will be a standard “fill-in the blanks” form, and possibly language to be included in development agreements for deals on new developments. VLHA recommendations to Town Council on these issues are needed for the November 1, 2016 Council Meeting in order to keep things moving. To move forward at the Nov. 1st Council Meeting, we need to develop: The Deed Restriction for the Program (possibly a modified Type III) The initial list of typical Findings to be used for decision making Enabling Legislation (Town Attorney is drafting) The discussion turned towards valuations of deed restriction purchases. Representatives of the VLHA met with an appraiser to ascertain what the parameters are for the valuation of units with deed restrictions versus those with none. In order to make informed decisions for the DR Purchase Program, we need data on sales and valuations comparing like units (size, finishes, age, etc.) with and without deed restrictions. The appraiser was asked to doe an analysis (for which he is to be compensated) to get this data for the VLHA, here in Eagle County, but could also be Summit and Pitkin as well. Other appraisers will be approached to get competitive bids. A question came up concerning whether the Board needs to be concerned with underwriting criteria for the deals or do we rely on the financial institutions? We are simply buying an interest in real estate, not purchasing units. The deed restriction becomes a part of the “bundle” of property rights that goes with the land. We have to have “findings” on each deal, how do we discern between offers? Do we judge the property’s age and condition? Should we be concerned about the reason for the seller’s offer? The “reason” for the purchase is not germane; purchasing the deed restriction is the goal. What about seller’s remorse down the road? As in all real estate deals, the price is determined by willing buyer and willing seller at the time of sale. Future considerations are not relevant, as long as both parties are satisfied at the time of sale. As we progress, the market will determine the value. Discussion ensued regarding the form of the deed restriction for the program. It was postulated that perhaps we use the standard Type III rental unit deed restriction currently in use. This requires that the occupant of the EHU work a average of at least 30 hours per week year round for an Eagle County business. The question came up what about someone, who lives full time in Vail, but works remotely? Should we include an allowance for employees, who work remotely, but have lived in Vail for at least 3-5 years? After much discussion, it was determined that the deed restriction needs to be kept simple at first, using the Type III existing restriction possibly with some minor modifications. Further restrictions can always be added later as needs/demand for them arises. Formal Endorsement of Marriott Proposal Building upon the previous discussion of the Marriott Residence Inn Project, the Chair asked if it was the consensus of the Board to give a VLHA formal endorsement of the proposed development. A motion was made by James Wilkins to give Formal Endorsement to the Marriott Residence Inn Proposal on the Roost Inn property based upon the following findings: The proposed project meets the strategic goals of the adopted housing plan; and It furthers the policy objectives of the Deed Restriction Purchase Program Murphy seconded the motion. The motion passed unanimously. Deed Restriction Purchase Presentation Lee Fabricius, VR Retail Manager and Nate Hall, Real Estate Agent came before the Board to present a potential deed restriction purchase proposal. Mr. Fabricius presented to the VLHA that he had read about the Deed Restriction Purchase Program in the local newspaper and became very interested in the concept. He is currently works full time as a retail manager for one of Vail Resorts Ski Shops and is searching for a home in Vail with the assistance of Mr. Hall. There are limited homes on the market within his price range and due to the market conditions, he is in need of down payment assistance. He related that he is aware of many VR FTE employees, who are having difficulty finding affordable rentals in Vail. His plans to buy a large home renovate it and rent rooms to his fellow employees, producing long-term rentals instead of short-term, which are so prevalent in town. After some discussions and questions from the Board, Mr. Fabricius was informed that the program may or may not meet his needs. The parameters of the program have yet to be set and there are some legal hurdles to overcome, before it will be fully operational. It may take another 60 days before it is up and running. He asked if the program would be retroactive for people, who purchase before it is in place. He was informed that this is a deed restriction purchase program, so it is available to people, who currently own property as well as those purchasing property. He asked if there was a time limit on the deed restriction and would it go away after the second sale. He was told that the deed restriction is in perpetuity and goes with the land and not the owner. He thanked the Board for their time and consideration and asked to be kept informed about the progress. He was told that a website is under construction to have information readily available for the public and that he would be notified of the location. He was also informed that there will be a public hearing on the program before Town Council on November 1st, and that it would be good if he could attend and express his interest and support for the program. He said that he would certainly try to attend the meeting and speak. Mr. Hall added that it would be good to get information about the program out to the local realtor community, because there is scant knowledge out there now about it. Next Meeting Due to the amount of work to be done to get the deed restriction program up and running it was decided that the VLHA will start meeting on the second and fourth Tuesdays of the month until further notice. The Next regularly scheduled VLHA Meeting will be held at 3:00 PM on October 25, 2016 in the Small Conference Room at the Community Development Office. There being no further business a motion to adjourn the meeting was made by James Wilkins. Scott Ashburn seconded the motion and it carried unanimously. The Meeting adjourned at 5:20 PM. Respectfully Submitted, ____________________ Housing Staff INTRODUCED, READ, ADOPTED AND APPROVED this ______ day of ___________________, 2016.