HomeMy WebLinkAbout2010-22 Acceptance of a Payment in Lieu from Vail Associates Inc. in Exchange for a FUll and Final Release of the Skier Drop-off Requirements RESOLUTION NO. 22
Series of 2010
A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A PAYMENT IN LIEU
FROM VAIL ASSOCIATES, INC. IN EXCHANGE FOR A FULL AND FINAL
RELEASE OF THE SKIER DROP -OFF REQUIREMENTS ASSOCIATED WITH THE
NORTH DAY LOT PROPERTY; AND SETTING FORTH DETAILS IN REGARD
THERETO.
WHEREAS, the Town of Vail (the "Town "), in the County of Eagle and State of
Colorado is a home rule municipal corporation duly organized and existing under the laws of the
State of Colorado and the Town Charter; and
WHEREAS, the members of the Town Council of the Town (the "Council ") have been
duly elected and qualified; and
WHEREAS, the Town and The Vail Corporation, dba Vail Associates, Inc. ( "VAI "), are
parties to a certain Skier Drop -off Easement Agreement (the "Easement Agreement "), recorded
June 1, 2009, at Reception No. 200910491, and encumbering the property commonly known as
the "North Day Lot" and legally described as Lot 1, Block 1, Vail /Lionshead, Third Filing,
County of Eagle, State of Colorado, except those portions conveyed by Deeds recorded
November 3, 1972, in Book 226 at Page 32 and recorded July 11, 1983 in Book 363, at Page 341
(the "Property "); and
WHEREAS, the Easement Agreement calls for VAI to provide public use of a "skier
drop -off' area, i.e., a short -term vehicular loading and unloading area for drop —off use by Vail
Mountain skiers, snowboarders and users of other Vail Mountain recreational resources during
the Vail Mountain ski season when the ski lifts are operational, as more particularly set forth
therein; and
WHEREAS, the skier drop -off area is a mitigation of development impacts required of
the Arrabelle at Vail Square project by the terms of the Core Site Development Agreement dated
November 8, 2004 and made between the Town and Vail Associates, as amended (the "Core Site
Agreement "); and
WHEREAS, the Easement Agreement was specifically required as part of the Town's
development approvals for a major exterior alteration constituted by the "First Chair" employee
housing project being constructed on the Property, which approvals included a call -up review by
the Council (the "First Chair Approvals "); and
WHEREAS, since the selection of the Property for a skier drop -off area, additional
options for skier drop -off have been considered by the Town, and the Town has selected the
Lionshead Parking Structure as the alternative site and is proceeding to institute the skier drop -
off area at that location; and
WHEREAS, the Lionshead Parking Structure has been selected for skier drop -off use and
development of a skier drop -off area (the "Lionshead Drop -Off Area ") due to its close proximity
to the Eagle Bahn Gondola, ease of vehicular access, presence of existing guest services
amenities, close proximity to public transit, and its ability to increase or decrease in size based
upon user demand; and
WHEREAS, the Town wishes to accept $725,000 from VAI as a payment in lieu of
providing the skier drop -off area on the Property (the "Payment in Lieu "), such Payment in Lieu
to be in exchange for the termination and release of the Easement Agreement, the Town's
agreement that all skier drop -off requirements under the Core Site Agreement and First Chair
Approvals have been satisfied, and the Town's approval of the VAI modifications to the First
Chair Approvals for deleting the planned skier drop -off area and establishing alternative
improvements (the "First Chair Modifications "); and
WHEREAS, the Council considers it in the interests of the public health, safety and
welfare of the Town and its inhabitants to accept this Payment in Lieu; and
WHEREAS, the approval of this Resolution No. 22, Series of 2010, is required to
authorize the exchange as described above.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF VAIL, COLORADO THAT:
1. The Town Manager is hereby authorized to accept, on behalf of the Town, the
Payment in Lieu from VAI in exchange for the termination and release of the Easement
Agreement, the Town's agreement that all skier drop -off requirements under the Core Site
Agreement and First Chair Approvals have been satisfied, and the Town's approval of the First
Chair Modifications. The Town Manager is further authorized and instructed to take whatever
actions the Town Manager considers to be necessary or appropriate to complete the exchange,
including, without limitation, the execution and delivery on behalf of the Town of such
documents and instruments with such terms and provisions as the Town Manager may
determine, with the Town Attorney's approval, to be acceptable and appropriate in furtherance of
this Resolution (specifically including, but not limited to, an agreement governing the exchange,
a termination of the Easement Agreement, and an amendment to the Core Site Agreement). The
agreement governing the exchange shall require VAI to construct between twenty (20) and thirty
(30) day parking spaces on the Property in the location contemplated in the Easement
Agreement. The Town shall perform, observe and discharge its obligations under those
documents and instruments. The Town's Director of Community Development is specifically
authorized and instructed to approve the First Chair Modifications on terms and with content that
the Director considers appropriate.
2. The Council hereby finds, determines and declares that this Resolution is in the
interests of the public health, safety and welfare of the Town of Vail and its inhabitants.
3. The Terms of Negotiation set forth in Section IV of the memorandum to Council
dated August 31, 2010, attached hereto as Exhibit A , are incorporated herein and made part of
Resolution 22, Series 2010 by this reference.
Resolution No. 22, Series 2010 2
4. This Resolution shall take effect immediately upon its passage.
INTRODUCED, PASSED AND ADOPTED at a special meeting of the Town Council of
the Town of Vail held this 31 st day of August, 2010.
1
Dick Cleveland,
Mayor of the Town of Vail, Colorado
ATT •
orel i Donaldso
Town Clerk
r
r
Resolution No. 22, Series 2010 3
EXHIBIT A
Memorandum
To: Vail Town Council
From: Stan Zemler, Town Manager
George Ruther, Director of Community Development
J. Matt Mire, Town Attorney
Date: August 31, 2010
Re: Resolution No. 22, Series of 2010
I. Purpose
The purpose of this memorandum is to provide the Vail Town Council with the
background information needed to discuss accepting a. fee in lieu payment of
$725,000 in exchange for the full and final release of the skier drop -off easement
agreement currently recorded against the North Day Lot'property. A copy of
Resolution No. 22, Series of 2010 has been attached for reference. It is important
to note that an approval of Resolution No. 22, Series of 2010 does not release Vail
Resorts of its skier drop -off obligation. Instead, an approval allows for the Town
to accept a fee in lieu payment as a means of meeting the obligation.
II. Background
On June 15, 2010, at the direction of the Vail Town Council, the Town Staff
presented a North Day Lot Skier Drop Off fee in lieu offer to Vail Resorts for
consideration. The offer was made as pursuant to the Approved Development
Plan for the Arrabelle at Vail Square project, the applicant, Vail Resorts, is
contractually obligated to provide nine (9) public skier drop off spaces within the
Lionshead area. In accordance with the approved plans for the North Day Lot
employee housing project ( "First Chair "), the applicant has agreed to construct
nine (9) skier drop off spaces for public use on the west end of the development
site. In addition to the skier drop off spaces, the applicant has also agreed to
construct certain pedestrian improvements and amenities (ie, shelters, benches,
heated walkways, etc).
To effectuate the obligation, the Town and Vail Resorts have executed a Skier
Drop -Off Agreement. Among other things, the Agreement establishes a public
use easement on a portion of the North Day Lot and describes the terms by which
the drop -off area may be used. In summary, the "drop -off use" shall mean,
"the short -term and unloading of Vail Mountain skiers, snowboarders and
users of other Vail Mountain recreational resources by private passenger
vehicles during the Vail Mountain ski season for the periods when the ski
1
lift is in operation (ie, generally between the hours of 7:00 am and 7:00
pm). py
A copy of the Agreement has been attached for reference.
The Town of Vail is presently constructing public skier drop off improvements
within Lionshead at the Lionshead Parking Structure. As part of a total $5.5
million public transit and skier drop -off improvements project, 10 -25 public skier
drop off spaces will be created. The design of the spaces is such that the total
number of drop -off spaces can be increased or decreased in response to user
demand. A new entry portal will be constructed on the west side of the parking
structure to accommodate vehicle ingress and egress.
III. Why Consider a Fee in Lieu Option?
The North Day Lot skier drop off location was selected based upon the best
information available to the applicant and the Town at the time. At the time that
the site for skier drop off was selected by the Town, other site options were not
available for consideration or were discarded due to cost. Since selecting the
North Day Lot site, additional options for skier drop off have been considered by
the Town (ie, Lionshead Parking Structure west in/west out). The Lionshead
Parking Structure site was selected for additional skier drop off due to its
proximity to the Eagle Bahn Gondola, ease of access, presence of existing guest
amenities, proximity to public transit, improved guest experience and its ability to
increase or decrease in size based upon demand.
A fee in lieu option should be considered for the following reasons:
... A more suitable location for skier drop off has been identified by the
Town since previously approving the NDL site.
... Greater utilization of the Lionshead Parking Structure site is anticipated
due to the closer proximity of the structure to the core of Lionshead and
the Eagle Bahn Gondola.
... The Lionshead Parking Structure site is in a more intuitive location for our
guests and visitors.
... No additional Town staffing will be required.
... There is a decrease in the number of parking spaces temporarily lost in
Lionshead.
... The terms of the skier drop off easement agreement only permit the use of
the North Day Lot for public uses during the Vail Mountain ski season.
... The NDL site can be better utilized for Vail Resorts employee parking and
the additional parking comes on line sooner.
... The NDL site has less of an impact on the no net loss of parking policies
outlined in the Lionshead Redevelopment Master Plan.
... The funds resulting from the fee in lieu payment can be leveraged by the
Town for the betterment of the community and our guests.
2
... The North Day Lot is no longer the best location for public skier drop off
and as such the location will be underutilized in comparison to other more
suitable locations.
IV. Terms of Negotiation
The following terms of negotiations have been outlined for discussion purposes:
Vail Resorts
... Vail Resorts agrees to provide the Town of Vail a one time payment of
$725,000.
... Vail Resorts agrees to make the one time payment upon execution of any
skier drop amendment agreement.
... Vail Resorts agrees to construct and maintain the pedestrian improvements
across the site and provide a public pedestrian access easement to the
Town of Vail. Snow melt is at VR's discretion.
... Vail Resorts agrees to submit a revised site plan to the Town of Vail
demonstrating compliance with the Town of Vail Zoning Regulations.
... Vail Resorts agrees to utilize the net new surface parking spaces (20 — 30
spaces) on the North Day Lot site for parking purposes.
... Vail Resorts agrees to maintain the current approved snowmelt boiler
system capacity for potential future use by the Town of Vail.
... Vail Resorts agrees to negotiate in good faith as time is of the essence.
Town of Vail
... The Town of Vail agrees to release the public skier drop off use restriction
from the North Day Lot site upon receipt of fee in lieu payment.
... The Town of Vail agrees that all net new parking spaces created as a result
of the new surface parking lot may be credited against the existing 318
parking space deficit.
... Town of Vail agrees to negotiate in good faith as time is of the essence.
3