HomeMy WebLinkAbout2018-07-18 VLHA Meeting Agenda
Vail Local Housing Authority
Agenda
Wednesday, July 18,2018
Regular Meeting
3:00 PM–5:00PM
Housing Department
Large Conference Room
75 South Frontage RoadWest, Vail, Colorado 81657
MEMBERS PRESENTMEMBERS ABSENT
Steve LindstromFrancisco Meza
Mary McDougall
Molly Morales
James Wilkins
Staff
George Ruther
Lynne Campbell
1.Review and Approve June 26, 2018Meeting Results5 Min.
2.Long Term FundingUpdate25Min.
3.C.R.S. §24-6-402(4)(a)(e) -to discuss the purchase, acquisition, lease, transfer, or sale of property
interests and to determine positions, develop a strategy and instruct negotiators, regarding:
submitted Vail InDEED applications and program details.90Min.
Adjournment at 5:00PM
Next Meeting –July 24, 2018
Future Agenda Items:
Long Term Funding SourceVLHA Business Plan
2019 BudgetEast Vail Parcel Update
Housing DataOpenLands Plan Discussion
Update Economic Value of Housing West Vail Master Plan Discussion
Discussion
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Vail Local Housing Authority
Meeting Results
Tuesday, June 26,2018
PublicMeeting
3:00 PM–5:00PM
Housing Department
Large Conference Room
75 South Frontage Road West, Vail,Colorado 81657
(Public Invited)
MEMBERS PRESENTMEMBERS ABSENT
Steve Lindstrom
Mary McDougall
Molly Morales, departed at 4:30PM
Francisco Meza
James Wilkins
Staff
George Ruther
Lynne Campbell
Attending from public Craig Cohen
Called to order 3:07 PM
1.Review and Approve June 12, 2018 Meeting Results, approved with changes.
Motion: MoralesSecond: MezaVote: 5-0
2.Resolution No. 12 Series of 2018, Second Amendment to the Development Agreementbetween the
Town of Vail, the Vail Local Housing Authority and Sonnenalp Properties, Inc.
Ruther presented an update on the Solar Vail development agreement. The number of restricted
units has increased from 16 to 17 in exchange for restructuring the agreement. Funding was not
increased per Ruther.
McDougall asked what the changedin the financial structure.
Ruther stated the previously approved funding would be placed in a certificate of deposit which will
be held until project completion.
Morales said agreement doesn’t say what happens with the 17 units. Should it?
No said Ruther.
Wilkins moved to approve Resolution 12, Series 2018Second Amendment to the Development
Agreement between the Town of Vail, the Vail Local Housing Authority and Sonnenalp Properties,
Inc.
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Motion: WilkinsSecond:MoralesVote: 5-0
3.Employee Housing Unit Deed Restriction Exchange Request located at 44 Vail Road Unit 3/
44 Willow Place
Morales said the board would approval subject to deed in front of loan.
What happens to the extra square footage they are supplying? The Town will keep track of any
additional square footage. The Town code doesn’t allow a square footage credit so Town gainedon
this exchange.
The applicant wants to present to Council that there is no incentive to exchange as exchange
square footage will be greateror lesser than the square footage needed tomeet in the exchange.
The Town needs to look at EHU as an asset vs. a cost.
Looking at this request, Lindstrom said,this has nothing to do with land banking. The Board is
being asked to make arecommendation.
Morales said deed should be recorded prior to loan documents.
Ruther said this doesn’t apply to the exchangeprogram.
Moralesand McDougall asked if it matters if the Town isnot in first position.
Per Ruther there is no obligation with an exchange to put deed restriction in first position.
McDougall sees since exchange is going from underperforming to a performing deed restriction so
perhaps that is the argument to not being in first position.
The exchange EHU is currently an under performingunit moving to a performingunit as it has to
resident occupied.
McDougall made a motion to approve a recommendation to Council for the proposed exchange.
Motion: McDougallSecond: MezaVote: 5-0
4.Lionshead Temporary Housing Proposal
EricSchmidt? and Steve ,representatives for Kim Hughes owner of Concert Hall Plaza,
were present to answer questions.
Ruther explained the proposal concept. There is an opportunity to convert existing space to
housing. If built the developer and owner would like it to be deed restricted at their will. Meaning at
some time the EHUs could go awayfor instance, ifredevelopment occurs there could bepotential
housing obligation.
Current deed restrictions are allowedper the Town code but not temporary uses. Code would need
to be amended or amend the deed restriction. If amend the deed restriction wouldn’t have to amend
Town Code.
Believe it is the best use of the space. Eric and Steve seeit is an opportunity. The location specified
is mid levelof the building located under Moe’sBBQ.
Wilkins asked if it is dorm style.
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Per Eric and Steve, they are looking to do a master lease. Vail Resortshas some interest in this
concept. No parking and feel the location removes need for parking. Parking is the employer’s
parking.
What is requested of the Board?
Representatives wantaBoard recommendation.
What is the underlying zoning? LMU1, residential units are allowed in this zoning. Deed restriction
is what is wanted by onlytemporary use.
Ruther said the goal is to have theBoard review request and if they have aposition share it now.
Lindstrom asked to remind why this type use is not used now.
Ruther said the library used this concept and took back EHUs when space was needed.
Meza asked if the owner was looking for a specific time frame.
Per representatives they are still working on economics and time frame for use.
Wilkins asked who doesthe finishwork.Representatives will finish out prior to renting.
Doesn’t meet current deed restriction need. There is a benefit to use.
Morales supports as the Town is not putting funding toward the project.
Lindstrom said the residents will meet deed restriction.
Ruther said only change is to limit the duration tothe discretion of the developer.
Cohen asked if the units were rented to seasonal employees and Vail Resortslease for year does
that meet the EHU requirements.
Ruther said yes.
All Board members are in supportof moving discussion forward.
Next upwas a discussion of the 6 West project and deed restriction acquisitionsrecommendation
Craig Cohen attended on behalf of Vail Health.
Ruther provided a memo from Gore Creek Partners describing the current 6 West Apartment
projectin Edwards.120 rentalapartments are being builtof which70% are deed restricted leaving
36 non-deed restricted. Units are expected to finish early January 2019. Steve Spessard has
approached the Town to see if there is interest in deed restricting 36units. The Town would
purchase deed restrictions not property with Vail employees have first rightsto rental. Ruther stated
the Town needs to look down valley for housing opportunities.
This approach does not involve Town development processes or the Town participating. Ruther
stated the Board would need to provide Counciland citizens will want some assurance the EHUs
meetthe Town’s restriction criteria. Spessard’s letter outlines a few options. Spessard has also
approached the hospital as well.
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Craig Cohen with Vail Healthsaid there isinterest in a master lease of 6 West.
No pricing restrictions for EC units same for TOV. If someone takes on master lease should get
some kind of discountper Cohen.
Ruther said quick, volume and strategically from Council view down valley opportunities.
Wilkins asked who is doing financing. Cohen wasn’t sure and could getinformation.Cohen said
Spessard didn’t get any credits from County.
Mary asked if the Town was doing master leasing. No, per Ruther, we would set up astructure for
inquiries.
Mary suggested the hospitaland TOV both do master leases and instead of an either or scenario.
6 West would be rented to Vail employees first similar to Solar Vail agreement.
Ruther said the Town is getting little risk, didn’t get involved in project development it’s simply buy
deed restrictions. It’s a win for Council.
Mary asked if the money comes from Vail InDEEDprogram. Ruther doesn’t have an answer for that
at this time.Some funding could come from Vail InDEED and could come elsewhere in budget.
How does enforceability work?
Ruther said we’ll need to work with our partners. He sees a violation could be not a civil rather a
criminal action where county is bypassed.
This type project makes the units local rentals vs. seasonal or second home rentals.
How do Vail employees/employers know about 6 West type properties?
Lease duration will be set by master lease, similar to Solar Vail.
6 West Apartments project is onCouncil agenda July 3, 2018 seeking Council direction if the
Housing department should continue.
5.Housing Policies
Ruther reviewed past meeting notes. He updated the formatting based on the Boardand Council
feedback. He added a catch phase for each policystatement.
1)Change wording and add “active pursuit of”
2)Make 2 number 1
3)Lindstromthinks still too passive. Make more of statement similar to no. 2. Modify to “A
proactive andasolution oriented environment promotes private sector investment in deed
restricted homes.”
4)Change catch phrase>leverage financial strength
a.The town will use its financial strength and acumen to acquire deed restrictions.
5)“will align”, comma after goal
6)Funds create deed restriction, deed restrictions are homes
7)The Town ensuresopportunity and access to its housing programs and initiatives through a
clear, equitable and easy to administer process for housing.
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8)The town supports a no net loss of residential occupied deed restrictions policy.
9)No issues
10)Listen to audiocouncil meeting
A recommendation to approve updated housing policies and further housing policies every other
year.
Ruther wants to create a policy document to highlight some of the policies. He will bring back to
council to approve/adoptbyresolution.
6.Vail LocalHousing AuthorityWebpage Development
Ruther is contacting Jerry Nichols to put a VLHA webpage together to indicate the who,what and
policies programs,etc.
No executive session occurred at today’s meeting.
Wilkins made a motion to adjourn the meeting.
Motion: WilkinsSecond: McDonaldVote: 4-0 (Morales departed at
4:30pm)
Adjournment at 5:05PM
Next Meeting –July 10, 2018
Future Agenda Items:
Long Term Funding SourceVLHA Business Plan
2019 BudgetEast Vail Parcel Update
Housing DataOpen Lands Plan Discussion
Update Economic Value of Housing West Vail Master Plan Discussion
Discussion
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