HomeMy WebLinkAbout1987-06-02 Support Documentation Town Council Work Session
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VAIL TOWN COUNCIL
WORK SESSION
TUESDAY, JUNE 2, 1987
2:00 p.m.
AGENDA
1. Interview Local Liquor Licensing Authority Applicants
2. Discussion of Eagle Valley Arts Council Request for Funds
3. Discussion of the Learning Tree Lease
4. Discussion of a Cascade Village/Uail Associates Easement Deed
5. Discussion of Alternatives for Permitting a Limited Program of
Outdoor Street Activity in the Village and Lionshead
6. First Quarter Financial Report and Discussion of Capital Projects
7. Discussion of Retail Market Analysis
8. Planning and Environmental Commission Report
9. Information Update
10. Other
11. Executive Session - Land Negotiations
VAIL TOWN COUNCIL .
WORK SESSION
TUESDAY, JUNE 2, 1987
2:00 p.m.
EXPANDED AGENDA
2:00 1. Interview Local Liquor Licensing Authority Applicants
Action Requested of Council: There is one opening on the
Liquor Board due to the expiration of Jack Curtin's term.
As of May 28, Jack is the only applicant for the position.
Voting on the position will be at the Evening Meeting.
2:10 2. Discussion of Eagle Valley Arts Council Request for Funds
Sue Taylor
Sydney Summers Action Requested of Council: Receive request and respond
accordingly.
Background Rationale: The Arts Council will be purchasing
banners for the festival in July. They feel there may be
some common uses for the banners by the Town, and therefore,
would like the Council to share the expense.
2:25 3. Discussion of the Learning Tree Lease
Larry Eskwith
Action Requested of Council: Consider the lease drafted by
the Town for the Learning Tree Day Care/Preschool
Background Rationale: The Learning Tree lease extending the
term of the present lease has been drafted and is presented
for the Council's consideration.
2:35 4. Discussion of a Cascade Village/Vail Associates Easement
Larry Eskwith Deed
Action Requested of Council: Consider granting an easement
above a Town of Uail roadway for the Cascade Village ski
lift.
Background Rationale: After obtaining an easement from the
Town for the base of the Cascade Village chair lift, Cascade
realized it needed an additional easement where the lift
crossed a Town roadway.
2:45 5. Discussion of Alternatives for Permitting a Limited Program
Tom Braun of Outdoor Street Activity in the Village and Lionshead
Action Requested of Council: Offer direction to the staff
on how to proceed with this project.
Background Rationale: In early April, the staff presented a
general outline of the issues involved in establishing a
program of street activity (vending and entertainment), for
Uail Village and Lionshead. At this meeting the Council
directed the staff to further study this matter and return
with additional information.
Staff Recommendation: Proceed with the preparation of an
ordinance to allow for a program of street activity limited
to artists and entertainers. Refer to the staff inemo for
additional information on this recommendation.
3:05 6. First Quarter Financial Report and Discussion of Additional
Ron Phillips Capital Projects
Charlie Wick
Stan Berryman Action Requested of Council: Receive first quarter
financial report and discuss and give staff direction as to
which additional capital projects should be undertaken this
year.
Background Rationale: A list of proposed capital prajects
is included in your packet which the staff is recommending
be completed this year. Some transfer of funds from the
general fund to the capital projects fund would be necessary
to complete these projects.
3:20 7. Discussion of Retail Market Analysis
Tom Braun
Action Requested of Council: Offer comments on preliminary
report of retail market analysis as prepared by Hamner Siler
George Associates.
Background Rationale: This study was requested by Council
during discussions of the potential for development of
additional retail space in the Town.
3:40 8. Planning and Environmental Commission Report
Peter Patten
3:50 9. Information Update
Ron Phillips
3:55 10. Other
4:00 11. Executive Session - Land Negotiations
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LEARNING TREE LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this day of ,
1987, by and between the TOWN OF VAIL, a Colorado municipal corporation
(hereinafter referred to as "the Town"), and the LEARNING TREE INC., a Colorado
non-profit corporation (hereinafter referred to as "the Learning Tree").
WHEREAS, the Town now owns a parcel of property known as the Mountain Bell
site, consisting of approximately twenty-five (25) acres; and
WHEREAS, the Learning Tree is a Colorado non-profit corporation (tax exempt
no. 84-0782643) which receives funds from contributions and student fees for the
operation of a child care center; and
WHEREAS, the Town and the Learning Tree are presently parties to a lease
agreement dated August 1, 1978, which lease is due to terminate on August 31, 1993;
and
WHEREAS, the Learning Tree wishes to finance and construct an addition to its
present school structure located on the Mountain Bell site; and
WHEREAS, in order to facilitate the financing of that structure, the Learning
Tree wishes to enter into a new fifteen (15) year lease with the Town.
NOW, THEREFORE, in consideration of the covenants, premises, and agreements
herein contained, and the payment of monies as hereinafter set forth, the parties
agree as follows:
(1) Premises
The Town agrees to lease to the Learning Tree and the Learning Tree
agrees to lease from the Town, that portion of the Mountain Bell site shown on the
attached Exhibit A for use as a child care center and related activities. The
entire leased premises including the access is hereinafter referred to as
"premises".
The location of any structure on the premises and any improvement of the
access shall be reviewed and approved by the Director of Public Works of the Town
and the Town Manager. All construction plans for any addition to the present
structure located on the premises shall be subject to the prior review and approval
of the Town.
(2) Term of Agreement
This lease shall be for a period of fifteen (15) years from August 1,
1987 through August 31, 2002.
(3) Rental Fee
For the first five (5) year period of the term this lease is in effect,
the Learning Tree shall pay as rent to the Town the sum of one dollar ($1.00) per
year. On the fifth year anniversary of this lease agreement, the Town Council
shall review the rent paid by the Learning Tree, and upon such review, in its sole
discretion, may increase said rent to an amount not to exceed the fair rental value
of the premises. The Town shall conduct such a review at subsequent five (5) year
intervals during the term of this lease agreement, and after each such review may
have the option in its sole discretion may increase the rent by an amount not to
exceed the fair rental value of the premises. Should the Town increase the rent
due and payable by the Learning Tree as provided for in this paragraph, the
Learning Tree shall have the option of paying such additional rent, or in its sole
discretion, terminating this lease agreement.
(4) Use of Premises
The Learning Tree agrees that the use of the premises shall compiy with
the following:
(a) For the operation of a non-profit child care center in accordance
with the Learning Tree standards and rules as set out below in Paragraph (5).
(b) Not to use the premises for any illegal or improper purpose or
other use that would create a nuisance.
(c) No commercial or other operation for profit shall be conducted on
the premises.
(5) The Learning Tree Covenants
The Learning Tree further agrees as follows:
(a) To operate the child care center in accordance with all the rules
and regulations of the Department of Social Services of the State of Colorado, and
the ordinances of the Town of Vail.
(b) The Learning Tree may adopt standards for admission to its child
care facility, provided, however, that admission priorities shall be as follows:
(i) Students of parents who reside within the Town of Vail;
(ii) Students of parents whose major employment is within the
Town of Vail;
(iii) Students whose parents are residents of Eagle County;
(iv) Students must be at least twelve (12) months old and no
older than seven (7) years of age (exceptions to the age limitations specified
herein may be made for physically handicapped children).
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(v) These admission standards shall be minimum standards and may
not be made less stringent without the prior written consent of the Town.
(c) The Learning Tree agrees to manage its child care facility for the
accommodation of the public and to operate the facility in a responsible and safe
manner. The Learning Tree shall be responsible for the supervision and care of the
child care facility and the leased premises and shall have on the premises during
the hours of operation a qualified Director and a sufficient number of trained
personnel for the proper operation of the premises.
(d) The Learning Tree agrees that the Town shall not be responsible or
liable for any costs or obligations for the operation of the child care facility.
(e) The Town may designate one (1) Director to sit on the Learning
Tree's Board of Directors to serve as a liaison between the Learning Tree and the
Town.
(6) Building
Prior to the construction of any addition to the existing building, the
Learning Tree shall submit the proposal to the Design Review Board of the Town.
The Learning Tree shall be responsible for all costs of said construction and for
the maintenance and upkeep thereof during the term of this lease. In addition, the
Learning Tree shall pay all utility charges and fees promptly after the same are
incurred. It is expressly understood by the Learning Tree that the Town will not
contribute toward the construction of the building or the operating of the child
care center during the term of this lease.
The Learning Tree agrees that upon request of the Town, the facility may
be used for public or governmental functions that would not interfere with the
child care purpose of the facility on such days and during such hours as the
facility is not being used for child care purposes. It is agreed by the parties
that at such time as the Town desires to use the facility, a supplemental agreement
will be entered into between the Town and the Learning Tree specifying the times,
uses, and responsibilities of the parties for joint use of the facility.
(7) Assignment and Sale
This lease agreement may not be assigned or sublet by the Learning Tree
without the prior written consent of the Town. The buildings and improvements
shall not be sold to any person or entity without the prior written consent of the
Town.
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(8) Damages
The Learning Tree shall see that the premises are protected from damage
or undue waste, and if any damage occurs to the premises by reason of the
negligence or actions of the officers, agents or employees of the Learning Tree,
then the Learning Tree agrees to repair said damage or pay to the Town the cost of
said repair. If the Town and the Learning Tree cannot agree on the amount of
damage to be assessed, the parties shall select a neutral third party who shall be
binding upon the parties.
(9) Damages by Fire or Casualty
The Learning Tree agrees that if the facility constructed by it for
child care purposes is damaged or destroyed by fire or other casualty during the
term of this lease, the Learning Tree shall, within a reasonable time, repair the
facility to its original condition or remove the debris or remains of the facility
from the site within a reasonable time. Said repair or removal shall be at the
sole expense of the Learning Tree. The Learning Tree shall maintain at all times
appropriate fire and extended coverage insurance for the full replacement value of
the premises.
(10) Expiration of Lease and Surrender of Premises
At the end of the term of this lease or upon termination as provided in
this lease agreement, the Learning Tree agrees to deliver the possession of the
premises to the Town. At such time, the Town shall have the option of taking
possession of the facilities and improvements constructed and 1ocated upon the
premises, or the Town may, in its sole discretion, require the Learning Tree to
remove any such facilities and improvements. Should the Town so require the
Learning Tree to remove such facilities and improvements, the removal thereof shall
be commenced and completed within a reasonable period of time of notification.
(11) Termination
(a) Either party may terminate this lease by providing thirty (30) days
written notice to the other party if: 1) the other party is in default under any
term or condition of this lease, and the default continues to the date of
termination; 2) the premises have been abandoned; 3) either party is bankrupt or
insolvent; or 4) inability of the Learning Tree to use the leased premises for a
period longer than one hundred twenty (120) consecutive days. Should this lease be
terminated by the Town, because of a default by the Learning Tree, it shall be for
the Town at its option without formal notice or demand of any kind to enter the
leased premises by any means including force and remove the Learning Tree
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therefrom. The Learning Tree shall remain liable for all its obligations under
this lease despite the termination of this lease by the Town.
(b) No waiver of default by one of the parties of any of the terms,
covenants, or conditions of this lease to be kept by the other party shall be
construed as a waiver of any other or subsequent breach or default.
(c) The parties agree and recognize that this lease is entered into
because of the public service being offered by the Learning Tree. Further, that
because the function is being carried on Town of Vail property and with the Town's
encouragement and approval, the public may look to the Town of accountability.
Therefore, the parties agree that on the anniversary date of this lease, the
Learning Tree's Board of Directors will meet with the Town Manager, and a complete
review of the program, operation, and staff of the Learning Tree will take place.
If the Town Manager is of the belief that the child care facility is not being
carried on in accordance with the best interest of the public, he shall inform the
Learning Tree and the Town Council of those concerns. The Town Council may then
terminate this lease by giving written notice of termination to the Learning Tree
one hundred twenty (120) days prior to termination.
(12) Licenses, Liens and Obligations
The Learning Tree agrees that it must be licensed by the Colorado
Department of Social Services, and that it will comply with the rules and
regulations of the Department of Social Services and shall not cause or suffer said
license to be suspended. The Learning Tree agrees to pay promptly all taxes,
license fees, and permit fees of whatever nature applicable to its operation and to
keep current all licenses required for the conduct of its business. Further, it is
agreed that the Learning Tree shall not permit any mechanic's lien, materialman's
lien, or any other lien to be foreclosed upon said premises or any equipment or
personal property located thereon. The Learning Tree agrees to furnish to the Town
upon request, duplicate receipts or other satisfactory evidence showing the prompt
payment by it of taxes, including Social Security taxes, Unemployment Compensation
Insurance taxes, or fees. The Learning Tree further agrees to pay promptly when
due all bills, debts, and obligations incurred by it in connection with the
operation of the child care center, and not to permit the same to become
delinquent; and to suffer no lien, mortgage, judgment, execution, or other
adjudication in bankruptcy which will in any way impair the rights of the Town
under this agreement.
1 -5-
(13) Bonds
(a) If the construction cost of the addition proposed by the Learning
Tree is to exceed fifty thousand dollars ($50,000), the Learning Tree shall obtain
a performance bond and a labor and materials bond from the general contractor who
is to do the construction work.
(b) The Learning Tree shall submit to the Town for its review and
approval, which approval shall not be unreasonably delayed or withheld, a copy of
the written construction agreement with the general contractor who is to do the
work on the property. Upon payment to the general contractor, the Learning Tree
shall require lien waivers and releases from the general contractor and all
subcontractors working on the construction of the addition to the Learning Tree.
(14) Indemnification
The Learning Tree agrees that it will indemnify, release, and save
harmless the Town, its officers, employees, and agents, from any and all loss of,
or damage to, property or injuries to, or death of, any person, and from any and
all claims, costs, suits, and judgments including reasonable attorneys fees and
expenses, of anyone, resulting from the operation of the child care facility, or
negligence of the Learning Tree, its officers, agents, or employees.
(15) Liability Insurance
The Learning Tree covenants and agrees that it will, during the term
hereof, carry a comprehensive general liability insurance policy, including
automobile liability (if applicable), in a form and with a company or companies
approved by the Town and in amounts not less than five hundred thousand dollars
($500,000) single limit for bodily injury to, or death of any person or persons or
damage to property, and furnish the Town a certified copy of said policy or
policies. Such policy or policies shall include the Town as a named insured and
shall contain a provision that the same may not be cancelled or materially changed
or altered without thirty (30) days prior written notice to the Town. In addition,
the Learning Tree agrees that from the commencement of construction on any new
addition and during the time of such construction until its completion, the
Learning Tree shall obtain a builder's risk policy in an amount equal to cover the
current replacement cost of any such improvement.
(16) Notices
All notices required to be given to the parties shall be given by
certified mail to:
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(a) Town of Vail
Attention: Town Manager
75 South Frontage Road
Vail, Colorado 81657
(with a copy to the Town Attorney)
(b) The Learning Tree
129 North Frontage Road
Vail, Colorado 81657
IN WITNESS WHEREOF, the parties set their hands and seals on the day and year
first above written.
TOWN OF VAIL, a Colorado THE LEARNING TREE, INC., a
municipal corporation Colorado non-profit corporation
By: By:
Rondall U. Phillips, Town Manager President
ATTEST:
Pamela A. Brandmeyer, Town Clerk Secretary
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EASEMENT DEED
KNGW ALL MEN by these presents:
That the TOWN OF VAIL, a Colorado municipal corporation ("Grantor") for ten
dollars ($10.00) and other good and valuable consideration, the receipt of which is
hereby acknowledged, has granted, bargained, sold and conveyed and b.y these presents
does grant, bargain, sell and convey and confirm unto VAIL ASSOCIATES, INC., a
Colorado corporation, and the CASCADE VILLAGE METROPOLITAN DISTRICT, a
quasi-municipal Colorado corporation (herein collectively referred to as
"Grantees"), the following real property situate in the County of Eagle, State of
Colorado, to-wit:
A perpetual exclusive easement and right-of-way above that portion of Grantor's
property which is set forth and designated on Exhibits A and B attached hereto for
the erection, maintenance, repair, re-erection and operation of a ski lift and
related equipment and facilities. Such easement may be.used by either of the
Grantees, their successors and assigns, to the extent reasonably necessary in
connection with the operation of a ski lift on or above such property and by all
members of the public for any use reasonably related to skiing activities on Vail
Mountain. Acceptance of this easement by Grantees shall constitute its agreement
and consent as follows:
1. At such time and in the event that the easement described herein is
abandoned or no longer used by Grantees or in the event Grantees do not begin
construction on said ski lift within eighteen (18) months from the date this
easement is executed, then Grantees real property interest in the easement shall
immediately revert to and be thereafter merged with the servient estate.
2. Grantees understand that Grantor does not warrant title to the above
described property in which the foregoing easement is granted and does not undertake
to defend Grantees in the peaceable enjoyment of this easement, and the grant of the
easement shall be subject to all outstanding liens, taxes, assessments and superior
rights, if any, in and to the property.
3. The use by the Grantees of the easement shall be at all times subordinate
to Grantors use of said easement notwithstanding the fact, however, that Grantor
shall not construct or allow the construction of any improvements within the
easement or outside the easement if the height of such improvements would intrude
within the cone described on Exhibit B attached hereto and incorporated herein by
this reference, or allow any activity within the easement or the cone which would
violate any regulations pertaining to the operation of such ski lift.
4. The granting of this easement does not in any way exempt the Grantees from
obtaining all necessary permits and approvals from appropriate Town of Vail Boards
and Commissions.
5. Grantees shall conform to all the laws and regulations of the United States
of America, the State of Colorado, the County of Eagle, and the Town of Vail, in its
use of the easement and any activity it conducts thereon.
6. The Grantees shall indemnify and keep the Grantor harmless from any and all
claims for damages to real and personal property and injuries or death suffered by
persons in any manner growing out of the use of said easement by the Grantees, and
the cost of defending said claims including but not limited to reasonable attorneys
fees.
Signed and delivered this day of , 1987.
Grantor: TOWN OF VAIL, Grantee: VAIL ASSOCIATES, INC.,
a Colorado municipal corporation a Colorado corporation
By: By:
Rondall U. Phillips, Town Manager Michael S. Shannon, President
Grantee: CASCADE VILLAGE METROPOLITAN
DISTRICT,
a Colorado quasi-municipal corporation
By:
President
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EXHIBIT A
A strip of land 54 feet wide lying within the right-of-way of Westhaven Circle,
Amended Plat Glen Lyon Subdivision, according to the map thereof recorded in the
office of the Eagle County, Colorado, Clerk and Recorder, said strip lying 27
feet on each side of the following described centerline:
Beginning at a point on the easterly right-of-way line of said Westhaven Circle
whence the southwest corner of Tract J of said Amended Plat Glen Lyon Subdivision
bears S 08°40'00" W 27.58 feet; thence N 40°17'04" W 48.24 feet to the point of
terminus on the westerly right-of-way line of said Westhaven Circle whence the
northeast corner of Lot 44 of said Amended Plat Glen Lyon Subdivision bears
N 32°O1'24" E 16.89 feet.
The side lines of said strip of land are shortened or lengthened to terminate
at said Westhaven Circle right-of-way lines.
~~p REGIsT
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U.S. FOREST SERVICE
- EXHIBIT B
A strip of land 54 feet wide lying within the right-of-way of Westhaven Circle,
Amended Plat Glen Lyon Subdivision, according to the map thereof recorded in the
office of the Eagle County, Colorado, Clerk and Recorder, said strip lying 27
feet on each side of the following described centerline:
Beginning at a point on the easterly right-of-way line of said Westhaven Circle
whence the southwest corner of Tract H of said Amended Plat Glen Lyon Subdivision
bears S 12°41'30" W 127.63 feet; thence N 40°17'04" W 50.12 feet to the point of
terminus on the westerly right-of-way line of said Westhaven Circle whence the
northeast corner of Lot 38 of said Amended Plat Glen Lyon Subdivision bears
N 12°39'30" E 37.81 feet.
The side lines of said strip of land are shortened or lengthened to terminate
at said Westhaven Circle right-of-way lines. 00+~11"
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Date:
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CEI(TERUNE S{'
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EOSEYENT "EASEMENT -
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57.411' 4
ir.s3' ACT 42
N12°41'70~~E 50.12~
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. 1.84'
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TRACT H ~ 3~ e~
AGCESS
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36.09
U.S. FOREST SERVICE
TO: Ron Phllips
FROM: Community Development Department
DATE: May 28, 1987
SUBJECT: Outdoor vending and street activity
This past April, the Town Council and staff had a general
discussion concerning the possibility of allowing a controlled
program of outdoor vending and street activity in Vail Village
in Lionshead. The result of this discussion was direction by
the Council for the staff to spend additional time studying
this issue and present further recommendations to the Council.
We have spend additional time evaluating possible alternatives
and offer the following recommendations to the Council. The
staff has considered modifications to existing ordinances that
have restricted street activity for a number of years. It is a
goal of our department to establish some limited modifications
to these regulations to allow for some limited type of street
activities for the summer of 1987. In considering the general
topic of these types of activities, we have delineated three
distinctive types of street activities:
l. The sale of goods and wares.
2. The sale of food and beverage items.
3. Street entertainment (includes artists creating work on
the streets).
There are a variety of issues relative to each of these types
of street activities. Among those that have been discussed
with the Council include location, type of vending, quality,
selection process, fees, etc. For a number of reasons, the
staff feels that our attention should be centered around street
entertainment for this summer. Comments we have received from
the public indicate much stronger support for these types of
activities as opposed to the vending of food or goods. In
addition, street entertainment types of activities will
generally be less competitive with existing retail operations
in the Town.
PROPOSED FUTURE ACTION
The staff would propose to begin work drafting an ordinance
that would permit a limited amount of outdoor street
entertainment in Vail Village and Lionshead. Staff would
envision street entertainment to include mimes, jugglers,
magicians, etc. as well as artisans who are creatin their work
on the streets (as opposed to simply vending booths of art).
Within the ordinance, the issues that have been addressed
relative to this concept could be dealt with, such as how many
participants are permitted in each area, their locations,
permitting processes, etc. By way of comparison, this
ordinance would be structured in a manner similar to the
transient vendors and special events permits that are now used
for the Coors Classic, World Cup, Eagle Valley Arts Council,
Art Fair, etc.
While additional work sessions will be necessary to further
define the perameters of this ordinance, the staff is desirous
of presenting our proposed approach before additional work is
initiated. Following a summer of experience with a limited
program, evaluations could be made as to any additional steps
the Town could take for next summer.
.
~y;y
lowo, of uai ~
75 south frontage road
vail, colorado 81657
(303) 476-7000
MEMORANDUM
TO: Ron Phillips
FROM: Steve Barwick
DATE: May 29, 1987
RE: 1987 First Quarter Financial Report
Please find attached the Town of Vail 1987 First Quarter Financial
Report. Please note that the estimates for expenditures include a
wide variety of supplemental items, most of which have been
discussed and/or approved by Council in recent months.
A total of $80,500 in General Fund supplemental items are listed
on page seven of the report. It has been discussed that these
items will be funded by the Council's contingency account.
A total of $621,900 in supplemental items have been added to the
Capital Projects Fund. The proposed method of funding for these
items is a transfer of $300,000 from the General Fund and the
expenditure of $260,842 of the remaining fund balance.
A total of $377,400 in supplemental items for parks and recreation
design and construction have been added to the Real Estate
Transfer Tax Fund. After project costs for Ford Park are
completed, we will approach Council for an additional supplemental
appropriation.
The net effect of these expenditures upon projected fund balances
is shown on page one of the report.
SHB/ds
TOWN OF VAIL
FINANCIAL REPORT
FIRST QUARTER 1987
~ 86FNDBAL Revised: 5/29/1987 .
STATEMENT OF PRC)JECTED CHANGES IN FUND BALANCE
1/1/87 - 12/31/87
REAL ESTATE SPEC. PARKING
GENERAL CAPITAL TRANSFER ASSESSMENT
FUND PROJECTS FUND TAX FOND FUND ; TOTAL ;
FUND BALANCE 1/1/87 1,651,918 469,991 2,440,576 167,811 ; 4,730,296 ;
Projected 1987 Revenue 9,786,000 4,442,000 1,237,000 55,000 ; 15,520,000 ;
Projected 1987 Expenditures 9,941,913 4,702,842 1,672,749 ( 16,000) ! 16,301,504 ;
Gain/(Loss) ( 155,313) ( 260,842) ( 435,749) 71,000 781,504) ;
,
PROJECTED FUND BALANCE 12/31/87 1,496,005 209,149 2,004,827 238,811 ; 3,948,792 ;
_ . . I
SALESTAX
, TOWN OF VAIL
SALES TAX ESTIMATION WORBSHEET
; 1987 1987
___MONTH______1980_______1981_______1982 1983 1984 1985 1986 ; BUDGET ACTUAL Variance
ecember 549,000 590,242 820,762 737,506 853,100 906,758 905,955 ; 1,131,000 1,167,280 36,280
January 626,448 514,102 675,186 696,752 742,262 881,304 890,585 ; 1,011,000 1,063,196 52,196
February 624,040 594,292 687,792 751,856 824,650 918,154 946,552 ; 1,062,000 1,135,786 73,786
March________683,000_ 697,464 853,648 977,828 1,084,814 1,187,520 1,316,652 ; 1,310,000 1,378,782 68,782
__UBTOTAL 2,482,488 2,396,100 3,037,388 3,163,942 3,504,826 3,893,736 4,059,744 ; 4,514,000 4,745,044 231,044
~
pril 246,820 308,436 355,300 319,546 481,204 531,668 430,877 539,00C1
May 89,180 135,774 147,378 156,588 166,200 162,912 244,987 ; 224,000 .
June 176,044 245,204 247,326 257,744 262,696 280,828 361,627 ; 361,000
July 281,846 339,418 349,116 407,474 406,462 447,815 479,507 ; 534,000
August 268,052 332,724 348,756 384,338 402,792 386,985 512,513 ; 518,000
September 176,090 285,918 268,598 324,670 384,864 340,102 374,060 ; 435,000
October 137,376 225,024 223,830 198,614 206,248 209,282 237,504 ; 266,000
November_____140,630 210,254 245,834 281,704 310,588 229,083 376,657 ; 366,000
^
N
v TOTAL 3,998,526 4,478,852 5,223,586 5,494,620 6,125,880 6,482,411 7,077,476 ; 7,757,000 4,745,044 231,044
_ (
~ RETT
Revised: 5/29/1987
TUWN OF VAIL
REAL ESTATE TRANSFER TAX
History and Budget
1980 1981 ' 1982 1383 1984 1985 1986 ! 1986
MONTH ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL 1987 1987 BUDGET
-i ' BUDGET ACTCJAL VARIANCE
January 63,999 98,089 106,981 113,372 78,053 80,733 101,374 ; 83,191 130,231 47,040
February 40,595 69,018 105,024 132,220 86,289 170,052 64,906 ; 81,8C11 43,980 ( 37,821)
March 69,886 126',935 109,533 137,820 62,693 63,831 92,557 ; 82,747 38,791 ( 43,956)
April _ 76,855 94,653 65,900 103,526 173,321 90,396 182,743 ; 96,338 95,554 ( 784)
May 42,738 84,324 __1_54,663_____90,593 96,006 228,673 98,651 ; 75,862 120,984 45,122
'
btotal ______294,073 473,019 ;442,101 584,137 496,362 633,685 540,231 ;
419,940 429,540 9,600
u
June 6`2,239 125,433 54,488 140,638 76,467 49,513 79,915 ; 71,266
July 49,367 186,110 104,262 68,533 157,598 88,528 70,441 ; 87,508
August 79,859 115,499 71,282 97,806 58,937 32,860 100,182 ; 72,969
September 59,800 113,992 49,332 96,746 ' 64,671 48,516 108,167 ; 67,721
C)ctober 108,510 154,000 42,498 122,546 88,732 109,633 93,860 ; 93,572
v November 102,623 107,768 81,698 31,385 105,109 74,909 89,047 ; 84,020
December 142,662 133,867 110,911 56,533 81,890 333,139 106,695 ; 103,004
TOTAL 899,133 1,409,688 956,572 1,258,330 1,129,766 1,370,783 1,188,538 '
, 1,000,000 429,540 9,600
- (
TOWN nF VAIL
1987 Financial Report
lst Quarter
1987 ESTIMATE T4 VARIANCE
GENERAL FUND REVENUE BLIDGET YEAR END OVER/(UNDER)
Taxes
Property & Ownership Taxes 1,507,000 1,507,00-0 p
Retail Sales Tax 4,544,000 4,632,000 88,000
Ski Lift Tax 588,000 588,000 0
Franchise Fees 340,000 340,000 p
Penalty & Interest 15,000 15,000 p
Trans to Cap. Projects Fund 0 (300,000) (300,000)
6,994,OC10 6,782,000 (212,000)
Construction Fees 119,200 160,000 40,800
Licenses & Permits 94,400 94,400 0
Charges for Services 183,650 190,000 6,350
Transportation Centers 1,058,160 1,055,000 (3,160)
Dobson Ice Arena 285,000 285,000 0
Recreation Programs 262,200 262,200 p
Intergovernmental Revenue 581,000 581,000 Q
Fines & Forfeitures 114,000 114,000 p
Other 262,400 262,400 0
TOTAL GF REVENUE 9,954,010 9,786,000 (168,010)
1987 ESTIMATE TO VARIANCE
GENERAL FUND EXPENDITLIRES Bt]DGET YEAR END OVER/ ( IINDER )
Legis., Manager & Judicial 413,477 408,000 (5,477)
Administrative Services 729,636 733,000 3,364
Community Development 488,090 488,090 0
Polic.e 1,692,270 1,692,270 p
Fire 741,916 748,000 6,084
Public Works 1, 4C)9, C)54 1,409,054 p
Transit 1,233,654 1,233,654 p
Transportation Centers 769,960 769,960 p
Dobson Ice Arena 505,399 505,399 p
Recreation Programs 580,063 580,063 p
Library 434,923 434,923 p
Contributions & Events 403,110 400,000 (3,110)
Employee Benefits 65,700 70,000 4,300
Insurance 416,400 400,000 (16,400)
Contingency 69,500 69,500 p
TOTAL GF EXPENDITtIRES 9,953,152 9,941,913 (11,239)
SURPLIIS/(SHORTFALL) (4) 858 (155,913) (156,771)
1987 ESTIMATE TO VARIANCE
CAPITAL PROJECTS FUND REVENITE BLIDGET YEAR END OVER/(t1NDER)
Retail Sales Tax 3,213,000 31275,000 62,000
County Sales Tax 131,000 134,000 3,p00
Ski Lift Tax 588,000 588,000 0
Street Use Tax 58,000 60,000 2000
Recreation Amenities Fees 16,000 35,000 19,,000
Earnings on Investments 93,000 50,000 (43,000)
Transfer from General Fund 0 300,000 300,000
TOTAL_REVENUE____ 4,_099,000 4,442,000 343,000
1987 ESTIMATE TO VARIANCE
CAPITAL PROJECTS FIIND EXP. BITDGET YEAR END OVER/ ( iINDER )
1-70 Interchange 0 235,000 235,000
Forest Road Bridge 75,000 78,000 3,000
Black Gore Bridge 0 25,000 25,000
Street Maintenance 520,000 570,000 50,000
Street Lights 30,000 38,000 8000
RF 4-Way Stop Improvements C1 54,000 54,,000
RF People Mover Study Q 24,000 24,000
RF nld Town Shop Improvements 0 33,600 33,600
RF Teen Center Remodel 0 3,000 2,500
RF Arena Mechanical Dampers 0 9,000 9,000
RF Town Manager's Residence 0 4,000 4,000
Misc. Bldg. Maintenance 60,000 60,000 0
TRC Roof Repair 28,000 18,000 (10,000)
Parking._ Structures Projects 20,000 30,000 10,000
Communications Equipment 50,000 50,000 0
TOV-Shop Improvements 73,000 25,000._. (48,000)
Slifer Square Fountain Repairs 25,000 25,000 0
Congress Hall Study p 48,800 48,800
Recreational Paths Maintenance p 60,000 60,000
Child - rens' Fountain Repair 0 5,000 5,000
Ice-Arena-Walkway--:_=_-:-: - - - - -:.:_:0... 3,OC10 3,0{~0
Town Manager s Residence 0 105,000 105,000
Sig,nage Project 120,000 120,000 0
Transfer to Computer Project 240,000 240,000 p
Transfer to Debt Service 2,839,442 2,839,442 p
TOTAL_EXPENDITIIRES 4,080,442 4,702,842 621,900
- SIIRPLtIS/(SHORTFALL) 18,558 (260,842) (278,900)
(5)
1987 ESTIMATE TO VARIANCE
LOTTERY FLIND BLIDGET YEAR END OVER/ ( t1NDER )
-
REVENUE ------------------------8,000--------5,000-------(3,000)
EXPENDITCIRES 8,000 5,000 (3,000)
SURPLtTS/(SHORTFALL) Q 0 0
1987 ESTIMATE TO VARIANCE
REAL ESTATE TRANS TAX FUND BtIDGET YEAR END OVER/(LINDER)
REVENUE
RETT Taxes 1,002,000 1,002,000 0
Transfer from VMRD 70,000 70,000 0
Earnings on Investments ' 165, C1C1C1 165,000 0
TOTAL RETT REVENUE 1,237,000 1,237,000 0
EXPENDITURES
Purchase of Open Space 508,687 508,687 0
Transfer to Debt Service Fund 786,662 786,662 0
Projects 0 377,400 377,400
TOTAL RETT EXPENDITtIRES 1,295,349 1,672,749 377,400
SURPLCIS/(SHORTFALL) (58,349) (435,749) (377,400)
1987 ESTIMATE TO VARIANCE
HEAVY EQUIPMENT FtIND BtIDGET YEAR END OVER/ ( tINDER )
REVENUE 1,033,800 1,033,800 0
EXPENDITURES 1,032,272 1,032,272 0
SCIRPLt]S/ ( SHORTFALL ) 1,528 1,528 p
(6)
:,.MNTL 5/29/87
TOWN OF VAIL
Supplemental Appropriations
GENERAL FLTND
PROPOSED
ACCOUNT ITEM SUPPLEMENTAL
01-0300-52120 Manager's Housing Allowance (6,800)
01-2100-51210 Recreation Plan roll-forward 12,000
01-2100-51210 Retail Market Study 11,800
01-0100-51210 Legal Fees - Singletree 8,800
01-0100-51210 Professional Fees - Carl Neu 3,000
01-0100-51210 Homestake II Consultant 1,000
01-8400-52809 4th of July Youth Events 11,000
01-8300-52833 25th Anniversary Committee 5,000
01-8300-52806 Cloud Seeding 16,000
01-6100-52869 Aquatic Center Task Force 3,000
01-6600-50100 Additional Teen Center Employee 5,300
01-6600-53100 Teen Center Maintenance 4,500
01-6600-51103 New Year's Eve Teen Event - Advertising 700
01-6600-52416 New Year`s Eve Teen Event - Operating 3,300
01-8400-52807 Coors Bicycle Race 1,900
01-0100-52857 Council Contingency (80,500)
GENERAL FUND TOTAL 0
CAPITAL PROJECTS FUND
PROPOSED
ACCOUNT= = ITEM SUPPLEMENTAL
507 Youth Center Remodel roll-forward 2,500
701 People Mover Study roll-forward 24,000
902 4-Way Stop Improvments roll-forward 54,000
502 Arena Mechanical Dampers roll-forward 9,000
508 Old Town Shops Remodel roll-forward 33,600
903 Town Manager's Residence roll-forward 4,000
404 I-70 Interchange 235,000
401 Forest Road Bridge 3,000
403 Black Gore Bridge 25
,000
-
_ Cl4 " - - - = - Con ress Hall -Stud
g y 48'800
Additional Street Maintenance 50,000
Recreational Paths Maintenance 60,000
Childrens' Fountain Repair 5,000
Street Lights - Gore Creek Promenade 8,000
Ice Arena Path 3~000
Town Manager's Residence 105,000
501 TOV Shop Improvements (48,000)
CAPITAL PROJECTS TOTAL 621,900
(7)
REAL ESTATE TRANSFER TAX FUND
PROPOSED
ACCOUNT ITEM SUPPLEMENTAL
30-9334-XXXXX Softball Fields Upgrade 25,000 -
30-9335-XXXXX Gold Medal Trout Stream 5,000
30-9336-XXXXX Ford Park Development - l, lb, lc designs 49,200
30-9337-XXXXX Rec. Paths & Town Landscaping - Plans 59,000
Neighborhood Park Designs 14,600
30-9337-XXXXX Cascade Bike Path 60,000
Buffehr Park Construction 51,200
Bighorn Park Construction (no dredging) 55,900
Sandstone Park Construction 57,500
REAL ESTATE TRANSFER TAX TOTAL 377,400
(8)
. 4
48~il
to w 75 south frontage road department of public worksltransportation
vail, colorado 81657
(303) 476-7000
MEMORANDUM
T0: Ron Phillips -
FROM: Stan Berryman
DATE: May 29, 1987
RE: Additional Capital Projects
Our Department has developed cost estimates for the following projects:
Supplemental Budget
Cost Estimate Recommendation
1. Recreation Path Maintenance $121,000 $60,000
(see attached 5 year
maintenance plan)
2. Repair concrete around the $ 5,000 $ 5,000
Children's Fountain
3. Install concrete walkway $ 3,000 $ 31000
between West Ice Arena
entrance and The Lionshead
Parking Structure
4. Additional Street Maintenance $196,400 $50,000
(see attached itemized list)
5. Install four (4) additional $ 8,000 $ 8,000
village street lights in Gore
Creek Promenade
Totals $333,000 $126,000
SB/slh
cc: Charl ie UJick
Steve Barwick
Bill Andrews
Pete Burnett
.
S-YEAR
BIKE PATH MAINTENANCE PLAN
1987-1991
ITEM 1987 1988 1989 1990 1991 TOTAL
ITEM
PATCHING 14,500 10,000 10,000 10,000 10,000 54,500
OVERLAY 32,100 15,000 15,000 15,000 15,000 92,100
SIGNAGE 10,400 5,000 5,000 51000 5,000 30,400
ROCK REMOVAL 91000 4,000 9,000 4,000 4,000 25,000
VEGETATION 6,700 6,700 6,700 6,700 6,700 33,500
CONTROL
BRIDGE 5,100 2,000 2,000 2,000 2,000 13,100
MAINTENANCE
CRACK SEALING 2,260 2,200 2,200 2,200 2,200 11,000
DRAINAGE 10,000 4,000 4,000 9,000 4,000 26,000
IMPROVEMENTS
SWEEPING 5,500 5,500 51500 5,500 5,500 27,500
FILL AREAS 7,300 3,000 3,000 3,004 3,000 19,300
BARRICADES 11900 1,900 11900 11900 11900 9,500
REFLECTORS 1,900 1,900 1,400 1,400 1,400 7,000
ROCKFALL 1,000 11000 11000 11000 11000 5,000
PICNIC 19,000 71000 7,000 7,000 7,000 42,000
IMPROVEMEr[TS
TOTAL/YEAR 121,000 68,700 68,700 68,700 68,700 395,900
.
1987 Additional Street Maintenance Patching
* 1. Sunburst Drive 200' $7,000
* 2. Matterhorn Circle (Bridge) 50' 5,000
* 3. W. Gore Creek Drive 200' 7,000
* 4. Vail Valley Drive 150' 5,000
* 5. Meadow Drive (EV) 200` 7,000
6. Main Gore Drive 150' 5,000
* 7. Kinnickinnick 2,000' (30%) 19,800
* 8. Red Sandstone Road 100' 3,000
* 9. E. Meadow Drive 150' 5,000
* 10. Buffer Creek Road 150' 5,000
11. Basingdale Blvd. 2,500' (30%) 25,700
12. Bellflower 2,000' (25%) 16,500
13. Snowberry Drive 2,000' (25%) 30,400
14. Forest Road 1,300' 45,000
15. Bridge Street 50' 10,000
$196,400
* T.O.V. Bus Route
Would expect contribution from Vail Associates
Town contribution to overlays performed as a requirement of street
cut permits
T0: Ron Phillips
FROM: Gary Murrair--A.", DATE: October 7, 1986
SUBJECT: Punch List for Town of Vail House
Living Room:
- A. Need post connections where beams meet posts.
B. Back screen door is missing a window.
C. Steps from living room to dining room are inconsistent.
D. Fireplace needs cleaning.
Master Bathroom:
A. Master bathroom tub needs replacing. ~ B. Sun lamp in bath is too close to the door.
Hot Tub Room:
A. Wood in entire room needs to be sanded and refinished.
B. Condensation fan needs to be installed.
C. Skylights need to have leaks fixed.
Interior Stairs: A. Head room on stairs from entry to basement is too low.
Basement Apartment:
A. Kitchen sink needs a vacuum breaker on dishwasher.
B. Fireplace needs cleaning.
C. Egress windows in bedrooms are too high; need to be 44" or under.
Mechanical Room:
A. Outside combustion air is needed in room with boiler and hot water
heater.
B. Hot water heater is too small.
Garage:
A. Needs a door closer on door from house to garage.
B. Hot tub boiler needs to be raised 18" off of garage floor.
C. Air blower needs a high loop 18" above,fluid rim of hot tub.
Outside of House:
A. Railing spacing is too far apart.
B. Deck joists need hangers.
C. Post brackets are needed in some places.
D. Siding needs staining by next summer.
E. Shingles on roof need replacing in a year or two.
F. Driveway needs paving.
G. Berms need to be put in back and on west side of the house to mitigate
debris flow.
~
48~ii ow
75 south frontage road
vail, colorado 81657
(303) 476-7000 office of community development
TOWN OF VAIL
MAiVAGERS HOUSE
ESTIMATE
GEiJERAL CONSTRUCTION 844 square feet @$60.00 $50,700.00
HOT TUB ROOM REPAIR 120 square feet @$40.00 4,800.00
RE-LOCATE MECH. ROOM 7,000.00
RE-LOCATE WALLS 3,000.00
NEW DECK AND REPAIR OLD 3,000.00
h1ASTER BATH 1,200.00
KITCHEN CABINETS 15,000.00
APPLI.qNCES 6,000.00
CARPET 2,200.00
DRFiP ES . 2,500.00
RE-STAIN SIDEING 2,000.00
RE-ROOF 51000.00
LAUDSCAPING 1,500.00
$ 103,900.00
**Estimate for work that needs to be done to the house
from October 7, 1986 inspection. -17,000.00
86,900.00
Contractor fee not included approximately 8 to 10%
' May 27,1987-.
' TOV Rer?odel Estimate
Old addition, ma.terial & labor' 21,500.00 . 11e4r kitchen cabnet ts 15,000.00
-Appliance 6,000.00
- L,ight fixture 1,500.00 .
Tile floor in kitchen . 900.00 Kitchen sinlc 500.00
Niew bath fix.ture 2,500,00
Tile in bath & floor 750.00 ~
Ca.rpet 2,000.00
I,andscaping 1,800.00
52,450.00
t•?ew addition; 724 sq ft at $60 a foot 43,440.00
. . Buildinp permit:: , 1,800.00 " -
. Sub total ,.97, 769.00
8 fee ; - 7, 815.00
_ Total $105,584.00
V. G. CONSTRUCTIOPJ C0I-4PA1TY, INC
. . ,
e
~
ANALYSIS OF VAIL
RETAIL SPACE NEEDS
Oraft Report
Prepared for:
Town of Vail
May 1987
HAh1M ER, S IL ER, GEORGE ASSOC I A T E S
Atlanta/Denver/Fort Lauderdale/Silver Spring/W'ashington, D.C.
1638 Pennsylvania Street
Denver, Colorado 80203
303/ 860-9996
I
.
.c ,
TABLE OF CONTENTS `
Paoe
Section I. THE EXISTING RETAIL EC4NOMY 1
Retail Inventory 1
Retail Sales 4
Rent Structure - 7
Seasonal Sales Patterns g
Section II. CHARACTERISTICS OF THE RETAIL MARKET g
Residential Retail Expenditures 12
Section III. RETAIL DEYELOPMENT POTENTTALS lg
Current Retail Space Potentials lg
Local Potentials ig
Tourist Potentials 20
Future Retail Potentials 22
Specialty Food Store Potential 25
Development and Planning Issues 26
New Space Requirements 28
Lionshead 30
New Retail Nodes 32
Secondary Impacts of Retail Trade 33
Conclusions 35
Hnhaglt • SnEit Ge.cxtr.E AssoCtx1'es
i
Section I. THE EXISTING BETAIL ECONOMY
The analysis of a local retail economy is generally conducted with
respect to three broad categories of retail goods. Convenience goods are
items which are purchased frequently such as food, drugs and liquor and
are usually sought at locations close to consumers' homes. Shoppers
goods, on the other hand, are less frequently purchased items such as
apparel and furniture for which consumers desire comparison shopping
opportunities. These goods are most frequently sought at regional retail
trade centers including regional shopping centers and central business
districts. Finally, eating and drinking establishments, including
restaurants and bars, include local neighborhood establishments, highway
oriented fast food, and restaurants which draw from wider geographic
areas.
Retail Invent y
The first step of the analysis Nas to inventory existing retail
establishments in the Town of Vail and to categorize this space by
location and types of goods. The inventory, discussed below, is
developed from information compiled by the Town of Vail Department of
Community Development based primarily on the floor plans of existing
commercial buildings in Vail and identification of the retail
establishments located in those spaces.
HIMNEt - Su.E'x - GEO[aGE - ASSOC1ATes
The Town of Vail has three well defined commercial areas: the
Village, Lionshead and West Vail. Vail Village is by far the predominant
area and B ridge Street, in the heart of the Village, is the prime retail
location in Vail. As shown in Table 1 on the next page, the Village
contains 289,738 square feet of retail space which is well over half of
the total retail inventory in Va11. The V111age area is the dominant
location for shoppers goods and eating and drinking establishments with
66 percent and 59 percent, respectively, of the total square feet in
these categories. By contrast, the Village contains just 24 percent of
the convenience goods square footage. Overall shoppers goods
establishments account for 69 percent of the stores and 55 percent of the
square feet of retail space in the Village; restaurants and bars make up
25 percent of the establishments and 39 percent of the space, with
convenience goods stores accounting for about six percent of both the
number of stores and square footage.
By contrast, Lionshead accounts for one-fifth of the Town's
inventory with 102,490 square feet of total space, which is ,just over
one-third as much retail space as the Village. Shoppers goods and eating
and drinking establishments each occupy about half of the space with
convenience goods stores accounting for ,just two percent of the space.
Shoppers goods stores account for nearly two-thirds of the number of
establishments.
West Vail is the'predominant convenience goods location with over 68
percent of Vail's total square feet in this category. The ma,jority of
this is accounted for by the Safeway supermarket. The total square
footage of retail space in West Vail makes up less than 19 percent of the
overall inventory.
-2-
H.ANSMt - SnU-R - GEOxc;F: - AssoCtU'Fs
, .
Table 1. TQWN OF VAIL RETATL INVENTORY, 1987
Square Feet of SRace
The Villaae Lionshead Ntest Vail Ot~ Total
Convenience Goods
Food 12,493 1,485 38,400 2,000 54,378
Drug 0 0 4,624 0 4,624
Liquor 4,350 873 4,200 600 10,023
Total 16,843 2,358 47,224 2,600 69,025
Shoppers Goods
Hardware/Building
Materials 0 0 7,348 0 7,348
Clothing 27,225 8,539 11,440 0 47,204
Ski b Sport 59,676 21,942 2,600 3,200 87,418
Jewelry 9,114 1,303 0 0 10,419
Gift 7,831 1,787 0 0 9,618
T-shirts 9,168 4,003 0 0 13,171
Fur 2,429 840 0 0 3,269
Gallery 8,877 1,370 0 0 10,247
Other Misc.
Shoppers Goods 35,53 8 12,116 5,514 0 53,168
Total 159,858 51,900 26,902 3,200 241,860
Eating and Drinking
Restaurants 98,578 38,187 10,700 9,450 156,915
Fast Food 5,456 0 6,650 300 12,406
Clubs 9,003 10,045 2,000 0 21,048
Total 113,037 48,732 19,350 9,750 190,369
TOTAL RETAIL 289,738 102,490 93,476 15,550 501,254
Source: Town of Vail and Hammer, Siler, George Associates
Only three percent of the total retail inventory of the Town of Vail
is located outside of these three ma,jor locations. Included in the
"other" category are small amounts of retail space in Cascade Yillage and
East Vail.
-3-
HANmIF1t - S1~ER • GECRGE - tlssOCLUes
:
R tail Sales
The analysis of retail sales levels is based upon sales tax data
from the Town of Vail, consultant interviews with merchants, and the
inventory data already tabulated. The purpose of this analysls is to
evaluate the health of the retail trade sector and the need or potential
for additional retail space. Unusual-ly--high sales per square foot could
indicate a shortage of commercial space, while very low sales might
suggest an excess of space or a mix of stores not meeting market desires. '
Estimated overall sales per square foot by store type are shown in Table
2 below.
Table 2. 3ETAIL SALES PER SQLIARE FOOT BY STORE TYPE
Sales per Sales per
Store Tv~e Square fQOt S ore Type Squae~ Foot
Shoppers Goods $259 Convenience $270
Hardware/Building Materials D Food
Clothing $195 Drug D
Ski and Sport $250 Liquor $295
Jewelry E400
Gift $175 Eating and Drinking $210
T-shirts $455 Restaurants $225
Fur $280_ Fast Foods $220
Gallery $200 Clubs $ 90
Miscellaneous Retail $200
D= Withheld to avoid disclosure of data regarding a single
establishment.
Source: Town of Vail and Hammer, Siler, George Associates
In the broad retail categories convenience goods stores registered
the highest sales per square foot followed by shoppers goods stores and
eating and drinking establishments. The relative relationship between
the ma,jor categories is generally what would be expected, especially
-4-
HAM,'~tER • SIIFR • GECX2C;E • ASS(KLA~I'ES
given the predominance of smaller specialty shops among the shoppers
goods category. However, actual sales per square foot are above
industry standards in all major categories reflecting strong overall
sales levels.
Among the more disaggregated store categories, jewelry stores and
T-shirt shops have sales levels well above all other categories. Two
factors are responsible for these high sales levels. First, both fewelry
and T-shirt shops tend to have small space requirements, averaging well
below 1,000 square feet per establishment compared to approximately 1,400
square feet on average for all shoppers goods establlshments in Vail.
Jeaelry shops deal in extremely high value merchandise resulting in high
sales levels relative to space requirements. In the case of the T-shirt
shops, very high volume contributes to the high sales per square foot.
The second factor is that the goods offered by stores in these tw o
categories appear to be especially attractive to Vail visitors. T-shirt
shops are extremely productive in areas with such a high number of
tourists and luxury items, such as jewelry, appeal to the upscale visitor
attracted to Vail.
There is also considerable variation in sales per square foot by
major retail area, as shown in Table 3. The Village has the highest
retail volume with overall average sales of $250 per square foot,
followed by Lionshead with sales of $225 per foot and West Vail with per
square foot sales averaging $205.
-5-
HnALNtE[t • SILEIt • GECA~CF_ • ASSOCLxTFS
Table 3. RETAIL SALES PER SQ,UARE FOOT BY RETAIL AREA
The Villaae Lionshead West Vail All Vail
Convenience E265 $160 $285 $27 0
Shoppers Goods $260 $250 $105 $240
Eating and Drinking E73 5 $200 $135 $210
All Retail $250 $225 $205 $230
Source: Town of Vail and Hammer, Siler, George Associates
The West Vail area figures represent sales close to industry norms
for community-serving shopping center space. Vail Village and Lionshead
are characterized by smaller specialty merchants serving the tourist
population. This type of space typically has higher sales per square
foot. Perhaps the most surprising point is that although the Village, as
expected, records the strongest sales, Lionshead is not that far behind.
Given the inventory _in the Village which is nearly three times the total
in Lionshead, the relative sales levels in Lionshead are actually
stronger than might be expected.
It is also important to remember that the figures reported are
averages. Some establishments are recording sales levels well in excess
and some well below these figures. There are differences between
particular store types by general area and by specific location, with
stores on Bridge Street, for example, often recording substantially
higher sales levels than similar types of establishments elsewhere.
These differences in sales .levels, both in comparison to industry norms
and by specific location in Vail, are reflected in Vail's retail space
rent structure, discussed below.
,
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HA,'~tNff1t • SII.ER • Gaw~: • AS,XX;L~U'FS
gent Structur
Rents for retail space in Vail have been increasing during the last
two years. They are generally higher than industry-wide averages but are
actually near the norm for specialty retail space in high volume resort
locations. Rents vary substantially by retail area and to some extent by
location within a retail area. As shown in Table 4 below, the rents are
highest 1n Va11 Village, followed by Lionshead and West Vail.
Table 4. TYPICAL RENTS FQR RETAIL
SPACE IN VAIL
Rent Ranae
Location Per Sauare Foot
Vail Village $30-$50
Lionshead $20-$25
West Vail $10-S20
Source: Hammer, Siler, George Associates
The rents shown are typical for average sized establishments in each
area. Rents vary by length of lease, size of space and location, and
there are probably some establishments withln each area paying rents
above and below the levels shown. The broadest range of rents is f ound
in the Village with locations on Bridge Street generally commanding the
highest rents in Vail.
Most restaurants in Vail operate on a percentage of gross sales
rather than a per square foot lease arrangement. In general, the retail
rents reflect tho sales levels which can be generated given customer
traffic at various locations.
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HA:tirntFlt • SuFx • GECxac;F. • .kssoCL-,iFFs
Seasonal Sales Patterns
A key component of the retail sales analysis in Vail is the seasonal
difference in sales volume. It is not surprising to find that the five
months from Oecember through April account for 65 percent of annual
retail sales. The three summer months of July, August and September
account for 20 percent of sales and the four shoulder season months make
up the remaining 15 percent. As shown in Table 5, this pattern varies by
store type with over 70 percent of ski and sport shops sales occurring
during the five month ski season but Just under 50 percent of grocery
sales occurring during those months.
Table 5. RETAIL SALES BY SEASON
Percent Qf Annual Sales
Shoulder
Store Type Ski Season Su~ Seasons
Restaurants 67% 20! 13%
Bars and Clubs 66% 19% 15%
Groceries 50% 23% 27%
Liquor Stores 56% 22% 22%
Cl oth i ng 68% 207. 12%
Hardware/Building Supplies 44% 25% 31%
Ski and Sport Shops 73% 160 11%
Ski Rentals 84% 9% 7%
Gift Shops and Jewelers 64% 24% 12%
Convenience 51% 23% 26%
Shoppers Goods 68% 19% 13%
Eating and Drinking 67% 20% 13%
Source: Town of Vail and Hammer, Siler, George Associates
The categories for which the seasonal data is reported are those
currently utilized by the Town of Vail Finance Department and differ
somewhat from the categories used elsewhere in this analysis. The
explanation for this difference in seasonality is further elaborated upon J
in the next section addressing the characteristics of the markets for
retail goods in Vail.
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HP4NIl11EIt • SIIER - GE(X2CE - 28,SS()cL-1I'FS
Section II. GHARAGTERISTIGS OF THE RETAIL MaRKET
In slmplified terms the market for retall goods in Vail is made up
of three segments: destination tourists, day tourists, and local
residents. There are actually sub-components to these groups such as the
front range day tourist, the second home destination tourist and the
local employee who lives outside the Town of Yail municipal limits. The
characteristics of the tourist groups also vary considerably by season.
However, it 1s beyond the level of data available to deal with
disaggregations beyond these three broad categories.
Several approaches have been utilized to arrive at the estimates of
the share of the retail market accounted for by the three market
segments. First, a number of interviews were conducted with local
retailers representing a broad cross-section of retail store types.
These store owners and managers were asked to estimate the makeup of
their customers during the various seasons. The differences in seasonal
sales between store types were then analyzed to help confirm the data
from the interviews. Finally, the expenditure potential of local
residents (which will be discussed further in the next section) was
estimated. The breakdown of sales by season by major retail category are
shown in Table 6 below.
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F fANIl1tEEt • SI1iR • GE(vd~E • .-LS.S(X:L~T'ES
Table 6. SALES TO MAJOR MARKET SEGMENTS BY S AS N
Shoulder
Store CategQrv Market Segment Ski Season Summer Seasons
Convenience Destination 50% 3096 20%
Day 10% 20% 20%
Local 40% 50% 60%
Shoppers Goods Destination 85% 50% 35%
Day 5% 15% 15%
Local 10% 35% 50%
Eating and Drinking Destination 70% 30% 2096
Day 10% 30% 20%
Local 20% 40% 60%
Total Retail Destination 75% 40% 26%
Day 7% 20% 18%
Local 18% 40% 56%
Source: Hammer, Siler, George Associates
Although these figures are estimates, they are believed to
accurately reflect the general makeup of the retail market in Vail.
Several points are worth noting. F1rst, destination visitors are clearly
the driving force in the Vail retail economy. During the ski season they
account for 85 percent of the shoppers goods sales, 70 percent of the
restaurant and bar sales and 50 percent of the convenience sales.
Second, although day skiers are estimated to account for about 20 percent
of the skier days in Vail, they make less than 10 percent of the total
volume of retail purchases.
In 1986 the skier visitation for Vail Mountain broke out as follows:
59 percent out of state destination visitors; nine percent Colorado
destination visitors; 15 percent day visitors; and 17 percent local.
Colorado destination visitors consist of individuals who stayed overnight
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' I-IxNafER • SIl.ER • GF.( XbCx. • .-\.SS(X'LA~I'FS
at least one night in Vail. As a result, this figure includes weekend
visitors generally considered by merchants as day visitors in terms of
their expenditure patterns, as well as Colorado residents who enjoyed
longer stays in Vail. For purposes of this analysis we have spiit this
Colorado "destination" component between the destination and day skiers.
In Table 7 the retail purchases per day per skier are estimated for the
th ree broad categories of convenience goods, shoppers goods, and eating
and drinking establishments.
Table 7. AVERACE DAILY RETAIL PURCHASES BY SKIERS
Destination Skier Day Skier
Convenience Goods $ 6.90 $ 4.00
Shoppers Goods 42.00 8.00
Eating and Drinking 24.00 11.00
Total $72.00 $23.00
Source: Hammer, Siler, George Associates
As can be seen, the average destination skiers spends 50 percent
more on convenience goods, more than five times as much on shoppers goods
and more than twice as much in eating and drinking establishments than
does the day skier. Put another way, the average day skier might
purchase lunch and either a small ski, clothing or sundry item durtng a
day at Vail. On the other hand, the week-long visitor purchases two
meals a day; some groceries, and may buy new skis, ski apparel or gifts
while in Vail. The sales per skier shown in the table include sales to
members of a party who visit Vail but do not ski and are therefore
slightly higher than the actual expenditures per skier.
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Hr1hLNfE1t • SIlFR • GEC)PC>F: • ASS(X:LATFS
During the summer and off-season months local resident expenditures
make up a much greater portion of retail sales. Although it is less
meaningful to distinguish between day and destination visitors during the
summer season, total tourist expenditures drop from 82 percent to 60
percent of all retail sales, and during the off-season tourists account
for about 44 percent of sales compared to 56 percent for local residents.
The result is that tourists account for about 72 percent of annual retail
sales and destination tourists spend about 60 percent of all the retail
dollars captured in Vail.
Resident Retail Expeoditures
In order to analyze the expenditures by local residents a three-step
analysls is conducted. First total money income of Town of Vail
residents 1s estimated for 1986. This 1s calculated by multiplying the
total population times average per capita money income, as shown in Table
8. To this figure is added an allowance for income earned in Vail by
residents of nearby communities. These two components make up the local
market for retail goods in Vail.
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HNMNtF1t - Su.Ex - GECRGF. ASSCX:UU'Es
Table 8. MQNEY INCOME OF VAIL RESIDENTS
ANp EMPLQYEES, 1987
Other Eagle Countv
Residents Workina
Vail Residents in Yai]
1979 Per Capita Money Income
(1987 $20,700 t15,100
Real Annual Income Growth Rate
(1979-1984) 0.6% 1.5%
Estimated 1987 Per Capita
Money Income $21,700 $17,000
Estimated 1987 Population 4,500 2,250 ~
Estimated 1987 Total Money
Income $97,765,000 $38,250,000
Based on estimated Vail employment participation rate
of .5 and 50 percent of Vail total employment by
non-Vail residents.
Source: U.S. Department of Commerce and Hammer, Siler,
George Associates
The second step is to estimate the retail expenditures by this local
component of the market. This is done by first developing an expenditure
profile for Colorado residents based on total money income in Colorado
and statewide retail sales reported in the most recent Census of Retail
Trade for Colorado. Based on actual sales at the statewlde level, the
portion of total income spent by store category is calculated and shown
in Table 9 below.
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HA,L1fEIt - SIl-ER • GECAtC',F • ASS(K1,ITFS
Table 9. LOCAL RESIDENT EXPENOITURE PQTENTIALS,
TOWN QF VAIL. 1986
Potential
Percent Retail
of Income Expenditurea
Convenience Goods
Food 11.31% $11,059,928 .
Liquor 1.98% 1,063,314
Drug Stores 1.09% 1,052,031
Total 13.49% $13,185,274
Shopper's Goods
General Merchandise
Department Stores 4.72% 6,422,919
Other 0.37% 507,420
Apparel & Accessories 2.37% 3,225,539
Furniture 2.37% 3,220,874
Building Materials/
Hardware 2.56% 3,485,819
Misc. 2.11% 2,870,797
Total 14.51% 19,733,368 -
Eating b Drinking 5.60% $7,6I8576
TOTAL 33,60% $40,537,218
Note: Convenience potential based on Vail resident income only
(approximately $98 million). Shoppers Goods and Eating
and Orinking potential based on Yail resident income plus
allowance for nonresident Vail employees (apProximately
$136 million total).
Source: Hammer, Siler, George Associates
This profile is applied to the local income in Vail to estimate
local expenditures. As shown, 33.6 percent of total income is spent in
the store categories analyzed. Only the income for actual Vail residents
is used for the analysis of convenience goods because this represents the
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U1,1C11EX • SII.FR • GFi(m;F. • ASSOCLUES
extent of the primary local market for these goods. Other intervening
competitive opportunities exist, such as the City Market in Avon, for
non-Vail residents working in Vail. On the other hand, the allowance for
nonresident employees is added to the potential for shoppers goods and
eating and drinking establishments because Vail is clearly the primary
location for these types of establishments in the local area and the
primary local market for these retailers would extend beyond the city
limlts. Finally, these expenditure estimates are compared to our
estimates of retail sales to the local population. The estimated local
retail expenditures in Vail and the net outflows by retail category are
shown in Table 10 below.
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RxNtbiFR • SIIFR - GEoRCF. • ASS(X:Lu'FS
Table 10. LOGAL RESTDENT RETATL EXPENDTTURE OUTFLOWS• VAIL, 1986
Potential Exis ina Perce.nt
Retai] Local Retail Net Inflows Resident
ExAenditures Expenditures and Outflows In/Qutflow
Convenience Goods
Food $11,059,928 $ 8,671,312 ($2,388,617) -21.60%
Liquor 1,063,314 1,005,3 82 (57,932) -5.45%
Drug Stores 1,052,031 426,888 (635,144) -59.8096
Total E13,185,274 $10,103,582 ($3,081,692) -23.37%
Shopper's Goods
General Merchandise
Deptartment Stores 6,422,919 0 ($6,422,919) -100.00%
Other 507,420 0 (507,420) -100.00%
Apparel & Accessories 3,225,539 1,439,114 (1,7 86,425) -55.38%
Furniture 3,220,874 0 (3,220,874) -100.00%
Building Materials/
Hardware 3,485,819 690,124 (2,795,695) -80.20%
Misc. 2,870,797 7,633,487 4,762,689 165.90%
Total 19,733,368 9,762,725 ($9,970,643) -50.53%
Eating & Drinking $7,618576 $7,818,574 $199,998 2.63%
TOTAL $40,537,218 $27,684,881 ($12,852,337) -31.71%
Source: Harrnner, Siler, George Associates
The overall net outflows in convenience and shoppers goods
categories represent expenditures which are made outside the Town of Vail
or are deferred due to lack of shopping opportunity. The "inflow" in
eating and drinking probably represents an expenditure pattern among the
local Vail population which differs from the statewide average, i.e., it
would appear that Vail residents expend a higher-than-average proportion
of income in restaurants and bars.
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H.ktiLNfEx - su.ex - GECRc~ - A.s.xx:[:~res
In Table 11 is a simplified model of the overall Vail retail economy
which shows total inflows and outflows. Approximately $12.8 million of
local residents' expenditures occur outside the Town of Vail representing
a 32 percent net outflow of the total resident expenditure potential.
The outflow is more than offset by $89.7 million in visitor expenditures,
and total retail sales are almost three times the total local expenditure
potential.
Table 11. OVERALL VATL RETATL INFL4W AND OUTFLOW
Total Loca
Location of Exnenditures gesideat
Vail Outside Vail ExRenditures
Local Residents t 27,700,000 $12,800,000 $40,500,000
Vail Visitors 89,700,000 NA
Total Vail
Retail Sales $117,400,000
Source: Hammer, Siler, George Associates
Based on the foregoing analysis of the exlsting retail economy in
Vail the next section discusses current potentials for capturing
additional retail sales in Vail. Future potentials tied to ski area
growth are also examined. These potentials are then translated to demand
for retail space and the development impacts of accommodating this demand
are discussed.
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HA,LNfER - SIIElt - GEC)tuz - ASSC)CL1TFs
Section III. RETAIL QEVELOPME PQTENTIAlS
This section of the report first evaluates whether additlonal retail
space is needed or supportable in the Town of Vail today. Second, the
amount of additional retail space needed in future years to meet the
needs of additional forecast skier visits is determined. Th1rd,
locational considerations regarding where additional retail space should
be built are addressed.
Gurr-ent Retail S2ace Potentials
The potentials for additional retai7 space could come from either
local residents or tourists or some combination of the two. Additional
local resident support could come from a store entering the market that
provides goods and services that residents are now buying outside of
Vail. Additional tourist support xould come as a result of overall sales
levels increasing to the point that additional stores are supportable or
because a type of store not currently in the market is identified that
appeals to the Vail visitor and generates additional retail sales.
Local Potentials
The first step in assessing existing unmet potentials is to
reexamine the local resident outflow discussed earlier and shown in Table
10. The ma,jority of the outflow now occurring is in the general
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IL"gMt • Su.Ftt • GECWT - r1s.wC1AI'Fs
merchandise, furniture and food categories. To some extent the outflow
in general merchandise is offset by higher than average sales in
miscellaneous shoppers goods categories. This reflects the fact that
there are no true department stores in Vail and that some expenditures
which would ordinarily be made in department stores now are made in
specialty shops which are accounted for in the miscellaneous shoppers
goods and apparel categories. There is significant net outflow 1n
shoppers goods overall, most of which probably could not be captured
without a general merchandise retailer such as a department or discount
store. There does not appear to be sufficient land available in Va11 at
a price which would allow development of such a major store along with
the parking requirements it would entail. Wal-Mart stores recently built
1n Frisco and planned in Avon are likely to capture a significant portion
of this potential. As shown in Table 12 the planned store in Avon alone
could capture up to 34 percent of the current outflow of general
merchandlse sales potentials.
Table 11. POTENTIAL IMPACT OF WAL-MART STQRE IN GENERAL
MERCHANDISE OUTFLOW. TOWN QF VAIL
Wal-Mart Potential Sales
(52,800 sq. ft. @$150 per square foot) $7,920,000
Less 40% sales to tourists -3,168,000
Sales to local residents $4,752,000
@ 50% to Vail Residents and Employees $2,376,000
Vail Local General Merchandise Outflow $6,930,330
Percent Capture of "Vaii Outflow" by Wal-Mart 34%
Source: Hammer, Siler, George Associates
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HA;tiL11ER • SII.FR • GE()w;F. • :1SSOCL-CI'ES
There is also significant dollar value (though less significant in
percentage terms) outflow in convenience goods. This results from the
fact that even convenience goods retailersare.oriented to some extent
toward the "captive" destination tourist market. This allows them to
achieve higher markups than might otherwise exist. Competitlon from
other convenience retailers in the region is likely to continue to be a
major factor unless another mafor supermarket can be supported in Vail
creating additlonal competition. The current resident outflow in this
category is not sufficient to support another such major convenience
retailer and is not likely to be in the immediate future. There may,
however, be an opportunity to support a store ahich fits a specific niche
not currently occupied in the convenience market. A specialty food
market could be such a store; a proposal for such a development was part
of the impetus for this study and that potential is dealt wlth separately
later in this report.
Tourist Potentials
Given current skler visitation levels additional tourist dollars
could be captured in Vail in two ways: 1) increase summer and off-season
visitation; and 2) attract a new store or stores to Vail which are not
currently represented in the market but which would -have-sufficient
appeal to Vail visitors to cause them to increase their expenditure
levels. Increasing summer and off-season visitation would increase sales
of existing merchants but would not generate any significant demand for
additional retail space. The focus of this study 1s retail space needs
and, therefore, the impact of lncreasing non-ski season visitation is not
examined in depth. However, increasing off-season and summer visitation
is, nonetheless, a worthy goal and would have three significant positive
impacts in Vail by: 1> increasing sales tax revenues without creating
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H.A-NQiFR - su.ex - Le.oRCF -:As.SC>cL)xes
significant new demands for public sector services; 2) strengthening
existing retail businesses in Vail; and 3) generating more full-time
year-round (as opposed to part-time seasonal) employment in the retail
sector.
There does not appear to be an opportunity to capture significant
additional sales to current Vail ski season visitors. The current m1x of
retail shops offer a wide variety of shoppers goods and sufficient
opportunities to make eating and drinking and convenience purchases.
This is borne out by comparing our estimates of average sales per
destination skier vlsit in Vail with estimates for the state. A 1985
study, The Contribution of Sk1in9_to the Colorado Economv, prepared for
Colorado Ski Country USA, found that the average destination skier spent
about $64 (in 1986 dollars) per visit on retail goods, including eating
and drlnking. Our analysis of expenditure patterns in Va11 indicated
that Vail destination skiers spent approximately $72 per visit, 13
percent more than the Colorado average.
Vail also has considerably more retail space per housing unit than
do comparable resort areas. A study of commercial space in resort areas
conducted by the Urban Land Institute found that resort areas generally
support between 50 and 75 square feet of retail and restaurant space per
residential dwelling unit, lncluding single-family homes, condominiums
and hotel rooms, with mature resorts closer to the 50-foot figure. In
Vail there are 65 square feet of retail space per dwelling unit, and this
suggests an adequate supply of retail space to capture visitors' retall
expenditures. , .
There could be an opportunity to make some incremental gains in
retail sales if a popular major retailer, such as a Banana Republic,
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I-i:uLNtFlt .su.eR.GF.otu'E-AsscX:La1'Fs
e
entered the Vail market. Although this might not require a significant
addition to the Vail inventory of retail space, there are few large
spaces avallable in Vail and new construction might be required to
attract such a retaller to Vail.
For most Vail retailers the growth curve in sales appears to be
flattening out. There will continue to be opportunities for new
establishments to enter the market either by replacing businesses which
no longer serve market demands or by occupying space in small additions
planned to existing retail buildings. However, we do not see a major
current unmet need for additional retail space in Vail. Mafor new retail
developments, if they occur at all, will be.in__response to increased
destinatlon tourist trade as discussed below.
Future Reta11 PQtentials
As noted above, destination visitors during the ski season are the
driving force behind retail sales levels in Vail. The Vail ski area 1s
currently undergoing slgnificant expansion anticipating that additional
capacity will result in lncreased numbers of skiers. Because ski season
sales will determine retail space requirements it is possible to proJect
additional space needs as a function of addltional skiers.
During the 1986 ski season there were approximately 1,250,000 skier
days recorded at Vail. This translates to overall ski season sales of
$61.00 per skier or, put another way, a little less than one-half square
foot of retail space per skier. Skiers will continue to be the driving
force behind retail space requirements in Vail. The current amount of
space essentially supports a hea7thy but not constrained retail economy;
therefore, skier growth rates can be applied to estimate future space
needs by broad retail category.
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HAhIlmFR • SII.E'R • GEOftCE • t1SSOCLC1'FS
We have projected additional retail space requirements by broad
retail category for three levels of skier visitation growth as shown in
Table 13 below.
Table 13. PROJEGTED RETAIL SPAGE DEMAND
Total Square Feet of Space Requlred
Year Prof ected 1990 1995 2QQQ
Skier Oays 1,373,700 1,519,500 1,617,000 .
Convenience Goods 76,076 84,150 89,549
Shoppers Goods 265,794 294,005 312,870
Eating 8 Drinking 210,856 233,236 248,202
Total 552,726 611,391 650,621
Cumulatlve Net New Space
1990 19a 2Q00
Convenience Goods 6,851 14,925 20,324
Shoppers Goods 23,934 52,145 71,010
Eating b Drinking 18,987 41,376 56,333
Total 49,772 108,437 147,667
Source: Hammer, Siler, George Associates
Although these are the levels of visitation projected in the Yai1
Land Use Plan for 1990-1991, 1995-1996, and 1999-2000 ski seasons, we
have not evaluated these pro,jections and the focus is not on what the
needs will be by a specific year but, rather, on the demand for space
which will result at defined visitation levels. We pro,ject demand for an
additional 49,800 square feet of space when annual skier days increase to
1,374,000 per year; another 58,700 square feet will be needed when skier
visitation reaches 1,520,000 per year; and 39,200 square feet of
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I~1L11F1t • SII.FR • GF.M;F: • ASS(X: Lal'FS
additional space will be supportable when skier days reach 1,617,000 per
year. This analysis is based on maintaining the existing mix of local,
destinatlon and day skiers.
Changing the mix between day and destination skiers could impact the
retail space demand. Although changes of five percent or less Nould have
a relatively minor impact on the retail sales and the demand for retall
space, a change of as much as ten percent could have significant
ramiflcatlons. As shown in Table 14, a ten percent increase 1n
destination skiers would result in an $11 million swing in retail sales
and a difference of more than 40,000 square feet in the retail space
demand. If destination visitors increased__to 74 perce_nt__of total
visitors, more than 90,000 square feet of total retail space would be
required Nith 50,000 of that in the shoppers goods categories.
Table 14. EFFEGT OF GHANGTNC SKTER MTX ON RETAIL
SPACE DEMAND FOR 1990
_ Percent Skier M1x
Increase i n
Increase in QgstinatiQn
Day Skiers Current Mix Skiers
Destination 54% 64% 74%
DaY 29% 19% 9%
Local 17% 17% 17%
Resultin9 Retail Space nAma?+d (SauarR FPAt)
Ex{stina
Retail S ace
tn197
Convenience 69,000 74,000 76,000 78,000
Shoppers Goods 242,000 237,000 265,000 293,000
Eating 8 Drinking 190,000 199,000 211,000 223,000
TOTAL 501,000 510,000 552,000 594,000
Source: Hammer, Siler, George Associates
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HA~\aw_a - sn.eR Ge.cRGE - A.sscxc•uFs
If such a drastic swing was in the other direction, toward more day
skiers, it could result in a 5,000 square foot reduction in demand f or
shoppers goods with increases of 5,000 square feet of convenience goods
and 9,000 plus square feet for eating and drinking establishments. The
overall result would be a need for very little additional square feet of
retail space and some change in the mix of establishments in existing
space.
S2ecialit.y Food Store Potential
One specific type of establishment which has been suggested as a
possible addition to the Vail retail mix is a specialty food store. In
Vail there are currently 53,200 squara feet in retail establishments
offering food and grocery products. The average sales per square foot 1n
the eight food stores (which includes grocery stores and delicatessens)
is about $295. This represents average sales levels but is not
particularly high for these types of establishments.
We have estimated resident expenditure outflow in groceries of about
$2.4 million which would support a store of 8,100 square feet if current
sales levels would be achieved. However, this would require a 100
percent capture of residents' food expenditures which is unlikely given
the proximity of City Market in Avon. Additional growth in the skier
market will probably be required before a major new food store can be
supported in Vail. The projected demand for an additional 6,000_plus
square feet of convenience goods by the time skier levels reach current
projections for 1990 could offer an opportunity for such an
establishment. If the projected skier levels are reached, a new
specialty food store of 5,000 to 8,000 square feet could be supported by
a combination of the tourist trade and some additional capture of
residents' food expenditures.
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HA141NiF1t • SIIFR • GECw-;E -i1SSCX'U1i'FS
D velQpment an Plannln9 Issues
Given the higher than average level.of sales per square foot which
exists in Vail, the first question which must be asked is whether this
represents a current undersupply of retail space. If such a condition
existed it could have two impacts: 1) competition would be constrained
leading to higher prices for a broad range of retail goods; and 2)
certain low-end retail goods or services would be crowded out of the
market._by higher-profit items. There is some evidence that these
conditions exist currently along Bridge Street in Vail Village but it
does not appear that there is a significant impact on the overall retail
mix in Va11. High-end or high-volume items such as jewelry, T-shirts and
furs are highly concentrated along Bridge Street which has the highest
rent levels in the Village. But together, these store types account for
only five percent of the total retail space inventory in the V111age as a
whole, too small a fraction to crowd out any significant retail goods or
services from the market. The only category of retail establishment in
danger of being severely impacted by competition for space from other
store types 1s night clubs, which record average retail sales less than
half the rate for retail establishments generally. And given the size
and space required for a nightclub facility (3,000 to 5,000 square feet
on the average), there would be no incentive for property owners to
devote space to this use. Given the the sales levels of nightclubs, the
supportable rents would be well below what could be achleved by small
specialty stores or restaurants in the same space.
Although some establishments, including many restaurants, clearly
are operating at or above capacity during peak ski season months, this
does not necessarily mean that more space is supportable. It would be
impossible to support space year-round based on the peak month demand
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Hv1BfEF2 • SILFR • GEC)RC;E • i1SS(x:L-1TES
.
alone, and the crowded conditions which occur are, to some extent, an
inevitable result of the seasonal fluctuations of the retall sector in
Vail. We conclude, based on the great divergence of sales levels among
individual establishments in Vail, that the existing inventory is
probably sufficient in aggregate to meet current demand without
significant detrimental effects such as higher prices than would
otherwise exist or lack of availability of certain types of goods. Some
reorientation and replacement of exlsting establishments can and will
occur in response to changing market conditions. Goods which cannot now
be found in Vail are probably missing from the market for one of three
reasons:
1. Insufficient local demand to support establishment offering
these goods;
2. Land values which are too high to allow construction of
space suitable for establishments offering these goods;
3. Lack of physical sites capable of accommodating facilities
for establishments offering these goods.
The second major point is that because the sales and rent levels per
square foot of retail space in Vail are considerably higher than industry
norms, the conclusions regarding space demand in the Vail Land Use Plan
overstate the likely need. In fact, planned additions in the Village and
elsewhere in the town which were identified in the Land Use Plan should
be sufficient to meet at least the short-term demand for retail space.
The third significant finding is that the demand for additional
retail space in Vail will be driven by ski season sales. Increases in
sales during the summer and shoulder seasons will improve the
profitability of existing firms but will not create demand for additional
space. On the other hand, based on sales and rent levels, there is not a
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P
significant amount of slack in the market which would easily accommodate
additional sales during the peak season without the possibility of
adversely affecting prices and the mix of retail store types. Therefore,
demand for goods and services resulting from growth in skier visitatton
is likely to result in demand for additional retail space.
Finally, a resort community such as Va11 is influenced by the
vagaries of national and regional economies. For example, several
retailers noted a recent change in the source of visitors to Vail
shifting the mix from Mexico and Texas to the east and west coasts and
upper midwest. This has resulted largely from regional shifts in the
economy, particularly the downturn in energy. A change in the tourist
profile can represent a shift in spending patterns which might not affect
some retailers at all while having a significant impact on others.
Therefore, retailers may be required to reorient their product lines to
survive in the marketplace and in some cases there will be turnover in
stores resulting in small changes in the retail mix.
New Space Requirements
Retail space needs through the year 2000 are compared to the
potentials for new retail space identified in the Vail Land Use Plan in
Table 15. This analysis assumes that skier levels projected for that
year are reached.
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.
'•Table 15. RETATL SPAGE SUPPLY AND DEMAND
S_quare Feet of
Retail S ace
Approved Unbuilt (Core areas) 27,000
Allowed in Master Plan (Core areas) 53,000
Total Core Potential 80,000
Plus Approved Unbuilt (Outside Core) 70,700
Total Retail Supply 150,700
Demand through the year 2000 147,667
Source: Vail Land Use Plan and Hammer, Siler,
George Associates
As shown, existing approved projects and areas planned for retail
development are sufficlent to provide the retail space required to meet
the demand anticipated wtth projected ski area growth through the year
2000. From the perspective of the health of retail merchants and the
overall strength of the retail economy, however, it may not be desirable
to see development occur in this manner. For example, the 70,700 square
feet approved outside of the core areas represent a 65 percent increase
in the space outside of the core. If this much development occurred 1t
would only serve to diffuse the market and possibly weaken the overall
retail economy. From the perspective of improving the performance of the
retail economy, we see two primary objectives: 1) to strengthen
Lionshead as a retail area; and 2) to improve the pedestrian flow to
locations off Bridge Street in the Village.
In terms of specific needs for retail space in the next few years,
we have pro,jected a demand for 6,850 square feet of convenience goods,
73,900 square feet of shoppers goods and 19,000 square feet of eating and
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ILANtNtF1t - Sn-Ex - Ge.cRc'F. - A.ssc>cLi~1'Es
drinking establishments when the ski area reaches seasonal levels of
1,374,000 skier days. This represents a ten percent increase over 1986
skier activity. If this demand materializes it could be accommodated in
number of ways that would serve to strengthen the long-term health of the
retail economy.
The potential retail infill locations suggested in the Vail Village
Plan could go a long way toward lmproving the pedestrian flow to both
existing and new retail areas there. Although not all of these proposed
additions would necessarily be requlred to achieve the desired result,
increasing retail space along East Meadow Drive and Willow Bridge Road
are most critical to efforts to create a flow of shoppers from the Bridge
Street area to areas such as the Crossroads Center, Village Inn Plaza,
Village Center and.the Sonnenalp Bullding. It is likely that any
additional development in the Village area will be primarily orlented to
shoppers goods and eating and drinking establishments, building upon the
existing strengths of the area. Easy to read retail directories and
maps, placed at strategic locations in the Village, would aid consumer
awareness of shops located off of Bridge Street.
Lionshead
Any major new retail development other than those strategic
additions in the Village should probably occur in Lionshead. In order to
strengthen and diversify Lionshead, additional square feet will
definitely be required. Several options exist for accomplishing this
including redevelopment of the Gondola building into retail space if a
new Gondola is built or replaced by a high-speed quad life. Another
option would be the development of a new mixed-use building in Lionshead.
Such an addition could be strategically placed to strengthen the
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HILbIRiF.Et - SIlER • GF.CHdGE • ASSOCLA1'FS
•
circulation pattern and attract more visitors to Lionshead. In order for
such an addition to be successful, however, it will be necessary for
Lionshead to establish an identity which differentiates it from what is
offered 1n the Village. It might become a center for night life in Vail,
accommodating clubs and bars which cannot afford the rent levels in the
V111age, or it is possible that several new retailers not present in the
Village could be attracted to Lionshead and provide a draw for the area.
This might include a popular national apparel chain such as Banana
Republic and a spectalty food store.
If a specialty food store xas added to the Vail retail inventory a
proper location would be imperative to assure its success. Food is a
convenience good and as the name implles, a locatlon for an establishment
offertng these goods must be easily accessible to its customers. Because
the market to be tapped will be a combinatlon of visitors and local
residents the store must be convenient both to the Vail bus system and to
automobiles. Given current development patterns this suggests a locatlon
proximate to one of the existing areas where adequate parking is
available, which essentially means a location tn or near Village or
Lionshead parking structures. For several reasons, it 1s believed that a
Lionshead location would be preferable. First, the Village already has
two ma,jor retail stores offering at least some of the items which might
be offered by a specialty food store. Lionshead has establishments
off ering a limited range of food and grocery ltems but has only a l.ittle
more than half as much space devoted to groceries and food as does the
Village. Second, to the extent that a specialty food store would be a
unique establishment in Vaii it would attract more people to Lionshead
and help to strengthen overall retail sales there. This could also help
to establish an identity for Lionshead. Third, Lionshead has more
condominium units than the Village and these renters are more likely to
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HAniNtER • Su.ER - Ge.cRce - Assoc~urs
buy groceries than those staying in lodge units. Fourth, the proposed
additions at the Village which would strengthen pedest rian patterns are
for the most part, not at locations wlth easy access to parking. In
fact, it is unlikely that a good site exists in the Village which could
accommodate this type of establishment. At Lionshead, existing
structures, or an addition to the west of the day skier parking
structure, could probably accommodate a speciaity food store, offering
excellent access both to the bus system and to free short-term parking
for local residents. Although a locatlon in the parking structure could
also achieve these two objectlves it would not be as effective in
strengthening the Lionshead area as a whole. Therefore, we believe that
if a specialty food store could be successfully developed in the next few
years, a Lionshead location would be preferable for such an
establishment.
New Retail Nodes
Given the pedestrian nature of Vail, it would be more effective in
generating additional retall sales to strengthen existing actlvity
centers rather than to create new smaller, less competitive, dispersed
pockets of retall stores. The limited amount of new retail space
projected gives th e strategic locatlon of this space added significance
in terms of the ability to achieve development ob,jectives in both
Lionshead and the Village. We do not believe that development of
additional retail space in the parking structures or the addition of new
space on Bridge Street would be particularly helpful in furthering these
ob,jectives. Also, although retail development at other locations, such
as the 20,000 square feet approved at Cascade Village, may be able to be
developed to some extent to serve convenience needs generated by
additional housing development, 1t is unlikely that a ma,jor concentration
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«
of shoppers goods establishments can be supported outside Lionshead and
the Village given proJected sales demand through the year 2000.
Secondary Impacts of Retail Trade
Retail trade is important to any community, not only because it is
the means by which local residents obtain most of their consumer goods,
but also because it provides jobs and generates sales tax revenue for the
local government. In a tourism oriented economy these two factors of
employment and tax base may take on added signiflcance because much of
the employment tends to be basic industry, that is, 1t brings in economic
activity from outside the community, and the sales tax revenues on these
sales represent a net inflow to the community's tax base. In order to
assess the impact of retail trade on the community we will briefly
examine retall employment and sales tax revenue impacts.
Based on our discussions with retailers we have estimated that there
is one full-time equivalent permanent employee per 300 square feet of
retall space in Va11. During the ski season employment is higher with
one employee per 200 square feet on average. Therefore, permanent
full-tlme retall employment in Vail is estimated at 1,670 with 64 percent
or 1,170 representing basic ,jobs in the local economy. In addition,
there are about 835 seasonal retall jobs (348 year-round FTEs) which are
all essentially basic. This results in a total of about 2,020 FTE retail
Jobs in Vail of which approximately 70 percent are basic. These Jobs
generate an estimated $24 million in wages in the Vail economy.
Retail Trade also makes a significant contribution to the tax base
of Yail. However, Vail does not place an inordinate reliance on sales
and use taxes to generate public sector revenues. As shown in Table 15
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HAI~fAfEEt • SIL.EFt • GECMiC~F. • ASSCX:GII'ES
w
. ,
below, VailIs percentage of revenues from thls source is similar to the
sltuation in other Colorado municipalities.
Table 15. 1985 SOURGES OF REVENUES FQR MUNIGIPALTTIES
Percent of Revenues
A1l_Municinalities
Vail gsRen Breckenridae Except Denver
Taxes
Property 11% 4% 10% 10%
Sales and Use 45% 53% 45% 46%
All other 19% 7% 2096 7%
Total Taxes 75% 64% 75% 63%
Non-Tax Revenues 25% 36% 25% 37%
Source: 1985 Loca] Government Financial Compendium, State of
Colorado Oivision of Local Government and Hammer,
Siler, George Associates
Aspen gains a greater share of revenues from sales taxes than does
Va11. This is due in part to the fact that Aspen has a substantially
loNer property tax rate and does not have a real estate transfer tax.
However, Aspen's retail economy also has the advantage of generating a
greater level of sales, especially during the off-season, as shown in
Table 16.
Table 16. PERCENTAGE OF ANNUAL SALE TAX
REVENUES BY SEASON, 1986
Vail Aspen
Winter (December - April) 65% 59%
Summer (July, August and September 2030 23%
Off-Season (May, June, October and November) 15% 18%
Source: Town of Vail, Town of Aspen and Hammer,
Siler, George Associates
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H.a:~thtFx - SniR - GF.c)Rc',E -:1sxx[.~res
~ -
'
Aspen retail sales in 1986 were 19 percent higher than in Vail and
more than 72 percent of this dlfference was accounted for by stronger
summer and off-season sales. Although Vail probably cannot in the short-
term match the summer and off-season sales achieved in Aspen, gains
probably can be made which will enhance the sales tax revenues in Va11.
Concluslons
The Vail retail economy has evolved along with the development of
Vail Mountain as a ski area. Skiers have been, currently are, and will
continue to be the drlving force in the local retail economy. There is
no evidence at present of any serious oversupply or undersupply of retail
space in Vail; but ski area growth could create additional demand for
retail space in the future. Growth in the summer and off season tourism
will improve the profitability of existing retailers, provide more
year-round employment, and enhance the Town's tax base, but will not, in
itself, create demand for more retail space.
There is currently enough approved or planned retatl space in Vail
to accommodate needs through the year 2000. The location and quality of
that space is more of an issue than is the quantity. Additional space
could serve to st rengthen the retail modes in Vail or it could fragment
the retail marketplace. The prime goals from a public perspective should
be to improve the circulation pattern in the Village and to strengthen
the Lionshead location. Selected additional infill projects in the
Village and a ma,jor addition at Lionshead are recommended as the means of
achieving these goals.
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}-LA,%WER • SIIFR - GEOtC;E -ASSOCLATFS
/
Planning and Environmental Commission
June 1, 1987
2:30 P.M. Site Inspections
3:00 P.M. Public Hearing
1. Approval of minutes of 4/27 and 5/11.
2. A request for a front setback variance in order
to enlarge an existing residential area above a
garage on Lot 8, Block 1, Vail Village 6th.
Applicants: Neil and Nancy Austrian
3. A request for an exterior alteration and a
density variance in order to enclose a 8
balconies and 2 decks at the Treetops
Condominiums located at 450 East Lionshead
Circle.
Applicant: Treetops Condominium Association