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HomeMy WebLinkAbout2009-09 Establishing the 2009 Payment of Fees-in-Lieu for Each Employee to be HousedRESOLUTION NO. 9਍ഀ Series of 2009਍ഀ A RESOLUTION ESTABLISHING THE 2009 PAYMENT OF FEES-IN-LIEU FOR EACH਍ഀ EMPLOYEE TO BE HOUSED, AS REQUIRED BY CHAPTER12-23, COMMERCIAL਍ഀ LINKAGE, AND FOR EACH SQUARE FOOT, AS REQUIRED BY CHAPTER 12-24,਍ഀ INCLUSIONARY ZONING, VAIL TOWN CODE; AND SETTING FORTH DETAILS IN਍ഀ REGARD THERETO.਍ഀ WHEREAS, on April 3, 2007, the Vail Town Council adopted of Ordinance Nos. 7਍ഀ & 8, Series of 2007, establishing Commercial Linkage and Inclusionary Zoning਍ഀ requirements in the Town of Vail; and਍ഀ WHEREAS, pursuant to Sections 12-23-5 and 12-24-6, Methods of Mitigation,਍ഀ payment of fees-in-lieu is one of five (5) methods by which the mitigation of employee਍ഀ housing required may be accomplished; and਍ഀ WHEREAS, in accordance with Sections 12-23-5 and 12-24-6, the fees-in-lieu for਍ഀ each employee to be housed and for each square foot of employee housing required਍ഀ shall be established annually by resolution of the Vail Town Council; and਍ഀ WHEREAS, the Vail Town Council has determined that the proposed fee-in-lieu਍ഀ amounts accurately reflect the affordability gap between a two person household earning਍ഀ 120% of the Area Median Income (AMI) and the 2008 Median Cost per Unit; and਍ഀ WHEREAS, the Vail Town Council finds that this Resolution furthers the਍ഀ development objectives of the Town and is in the best interest of the Town as it਍ഀ promotes the coordinated and harmonious development of the Town in a manner that਍ഀ conserves and enhances the availability of employee housing within the Town of Vail.਍ഀ NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE਍ഀ TOWN OF VAIL, COLORADO:਍ഀ Establishment of Fees-in-Lieu਍ഀ a. The fees-in-lieu for each employee to be housed or for਍ഀ each square foot of employee housing provided in accordance਍ഀ with Chapters 12-23, Commercial Linkage, and 12-24,਍ഀ Inclusionary Zoning, shall be established annually by resolution of਍ഀ the Town Council, provided that, in calculating that fee, the Town਍ഀ Council shall include the net cost (total cost less the amount਍ഀ covered by rental or sale income) of real property and all related਍ഀ planning, design, site development, legal, construction and਍ഀ construction management costs of the project, in current dollars,਍ഀ which would be incurred by the Town to provide housing for the਍ഀ employee to be housed or for each square foot of employee਍ഀ housing provided in that year;਍ഀ b. An administrative fee of $3,000/per employee or $3.65 per਍ഀ square foot shall be added to the amount set forth in paragraph a਍ഀ hereof.਍ഀ C. Fees-in-lieu shall be due and payable prior to the issuance਍ഀ of a building permit for the development.਍ഀ d. The Town shall only use monies collected from fees-in-lieu਍ഀ to provide new employee housing.਍ഀ The calculation formula for fee-in-lieu has been attached for reference਍ഀ (Exhibit A).਍ഀ 2. 2009 Pavment of Fees-in-Lieu Amounts਍ഀ a. Fee-in-lieu per employee (commercial linkage) _ $329,206਍ഀ b. Fee-in-lieu per square foot (inclusionary zoning) _ $398.65਍ഀ 3. Effective Date of the Resolution਍ഀ This Resolution shall be effective immediately upon adoption.਍ഀ 2009.਍ഀ INTRODUCED, READ, APPROVED AND ADOPTED this 7th day of April,਍ഀ Richard D. Cl6velan , Mayor, Town of਍ഀ Vail਍ഀ ATTES OF 'VA~I਍ഀ `fin f~ ~t •਍ഀ SSA਍ഀ Lor ei [Donaldson, Town Clerk਍ഀ Exhibit A਍ഀ 2009਍ഀ Fee-in-Lieu Calculation Formula਍ഀ 120% Area Median Income (2-person household)* $80,400਍ഀ Affordable Monthly Housing Payment $2,010਍ഀ Property Taxes/Insurance/HOA (20% of Housing Payment) $402਍ഀ Mortgage Payment $1,608਍ഀ Maximum Mortgage Amount* $238,180਍ഀ Affordable Purchase Price $250,716਍ഀ Average Square Feet of Units 825਍ഀ 2008 Median Price per Square Foot (all units)** $897਍ഀ Cost per Unit $740,025਍ഀ Affordability Gap/Payment per Unit in Lieu $489,309਍ഀ ***Assumes 5% down, 6% interest for 30 years.਍ഀ Gap per Employee (1.5 emps/household on average) $326,206਍ഀ Administrative Fee per Employee $3,000਍ഀ Fee per Square Foot per Employee $395਍ഀ Administrative Fee per Square Foot per Employee $3.65਍ഀ Fee-in-Lieu per Employee $329,206਍ഀ Fee-in-Lieu per Square Foot $398.65਍ഀ (Note - these figures to be established annually by the Vail Town Council)਍ഀ * As published by the US Department of Housing and Urban Development਍ഀ **Calculated by RRC Associates from the 2008 Eagle County Assessor's Data Base਍ഀ