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HomeMy WebLinkAbout2013-07 Establishing the 2013 Payment of Fees in Lieu for Each Employee to be Housed RESOLUTION NO. 7 Series of 2013 A RESOLUTION ESTABLISHING THE 2013 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 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 Y b 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 2012 Median Cost per Unit; WHEREAS, the Vail Town Council has determined the proposed fee in lieu amount should be calculated and then averaged with the two (2) previous years to more accurately reflect market conditions; 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: 1. 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 Resolution No.7, Series of 2013 Page 1 of 3 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 q hereof. C. Fees in lieu shall be calculated each year and that amount shall be aver-aged with the previous two 2 ears calculated fees 9 P OY in lieu to establish the new annual fees in lieu. d. Fees in lieu shall be due and payable prior to the issuance of a building permit for the development. e. 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. 2013 Payment of Fees in Lieu Amounts a. Fee in lieu per employee (commercial linkage) = $74,481 b. Fee in lieu per square foot (inclusionary zoning) = $134.65 3. Effective Date of the Resolution This Resolution shall be effective immediately upon adoption. INTRODUCED, READ, APPROVED AND ADOPTED this 16th day of April, 2013. Andrew P. Daly, May ow of Vail ATTEST:" Q F V Lor lei Donaldson, Town Clerk �yJ•.••••�•• � COLOR ' Resolution No.7,Series of 2013 Page 2 of 3 r � Exhibit A 2013 Fee in Lieu Calculation Formula 120%Area Median Income 2- erson household)* $81,600 ( P ) Affordable Monthly Housing Payment $2,040 Property Taxes/Insurance/HOA(20%of Housing Payment) $408 Mortgage Payment $1,632 Maximum Mortgage Amount $287,500 Affordable Purchase Price $301,875 Average Square Feet of Units 825 2012 Median Price per Square Foot(all units)** $442 Cost per Unit $364,650 Affordability Gap/Payment per Unit in Lieu $62,775 ***Assumes 5%down, 5.5% interest for 30 years. Gap per Employee(1.5 emps/household on average) $41,850 2012 Gap per Employee(not averaged) $46,500 2011 Gap per Employee(not averaged) $126,094 Administrative Fee per Employee $3,000 Fee per Square Foot per Employee $76.00 2012 Fee per Square Foot per Employee(not averaged) $85.00 2011 Fee per Square Foot per Employee(not averaged) $229.00 Administrative Fee per Square Foot per Employee $3.65 Fee in Lieu per Employee $74,481*** Fee in Lieu per Square Foot $133.65 (Note—these figures to be established annually by the Vail Town Council) *As published by the US Department of Housing and Urban Development **Calculated 2012 Eagle County Assessor's Data Base *** Rounded to the nearest dollar Resolution No.7, Series of 2013 Page 3 of 3