HomeMy WebLinkAbout2016-22 Establishing the 2016 Payment of Fees in Lieu for Each Employee to be HousedA i �r
RESOLUTION NO. 22
Series of 2016
A RESOLUTION ESTABLISHING THE 2016 PAYMENT OF FEES IN LIEU FOR EACH
EMPLOYEE TO BE HOUSED, AS REQUIRED BY CHAPTER 12-23, 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 12-23-6 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 12-23-6 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
80% of the 2016 Area Median Income (AMI) and the 2016 Median Cost per Unit;
WHEREAS, the Vail Town Council has determined the proposed fee in lieu
amount should be calculated and not averaged with the two (2) previous years to more
accurately reflect current 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. 22, Series of 2016 6/21/2016
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 $4,033/per employee or $4.90 per
square foot shall be added to the amount set forth in paragraph a
hereof.
C. Fees in lieu shall be calculated each year 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 employee housing.
The calculation formula for fee in lieu has been attached for reference
(Exhibit A).
2. 2016 Payment of Fees in Lieu Amounts as calculated in Attachment
below
a. Fee in lieu per employee (commercial linkage) _ $177,733
b. Fee in lieu per square foot (inclusionary zoning) _ $320.90
3. Effective Date of the Resolution
This Resolution shall be effective immediately upon adoption.
INTRODUCED, READ, APPROVED AND ADOPTED this 21st day of June, 2016.
Resolution No. 22, Series of 2016 6/21/2016 Page 2 of 3
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EXHIBIT A
ATTACHMENT C — 80% AMI
2016 Fee in Lieu Calculation Formula
80% Area Median Income (2 -person household)* $56,640
Affordable Monthly Housing Payment $ 1,416
Property Taxes/Insurance/HOA (20-25% of Housing Payment) $ 437
Mortgage Payment $ 971
Maximum Mortgage Amount $171,000
Affordable Purchase Price $180,000
Square Feet of Unit 825
2015 Median Price per Square Foot (all units) ** $ 534
Cost per Unit $440,550
Affordability Gap/Payment per Unit in Lieu $ 260,550***
Assumes 5% down, 5.5% interest for 30 years.
Gap per Employee (1.5 employees/household on average) $173,700
Administrative Fee per Employee $ 4,033
Fee per Square Foot per Employee $316.00
Administrative Fee per Square Foot per Employee $ 4.90
Fee in Lieu per Employee $177,733***
Fee in Lieu per Square Foot $320.90
(Note — these figures to be established annually by the Vail Town Council)
* As published by the US Department of Housing and Urban Development FY 2015 only available at
this time.
** Calculated using 2016 Eagle County Assessor's Data Base
*** Rounded to the nearest dollar
Resolution No. 22, Series of 2016 6/21/2016
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