Loading...
HomeMy WebLinkAbout1987-06-02 Support Documentation Town Council Work Session P-e- 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 -2- ; 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). -2- (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. -3- (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 -4- 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: -6- (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 -7- 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 -2- 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 'D.J. Da t e : //~C ~ ~c„ ~ ~ = -L and J . er Colorado .L=.23506 % J' ' • OS ; 46 45 CMAIqLIFT EASEIENT ~«M ? w fs , aa T N4~fN o~~ ~ 4aei ~ C/Rc s q111qUfT 46.24' (QQ~ N40°17'04'W EASEMENT 37 ~ 43 N oe•so'oo'[ N 72°01'24'E . 38 CENTERUME S{' CMAIRUFT V~T - EASEMENT ~ E15EYENT s e~ 574 ozz~iw' 50.12 30 E ,~i`~TRACT N i2 N40° fl '04'W 1• 20,OO• E~I 42 0.8432 / N12~~9lOE TRACT H 3'e' r'• ACCESS soo°16'49'w ae.99' w 4o• i?be"w 34.09 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" ~Q f~ , Date: P : ~ - _ L and J. echr~_-i°o ; - Colorado P.L.S.:ja~Q6 . F J' ' c~~ . - S/O 1 ~ _1o J ~0 ` • n,, \ 46 CNAIRLIFT y . 4rJ EASE?ENT 44 wf STh4 1fN 0% ~saei 1 ~ C//,C4f 4E.24' CMAIRIiIT N40-17'OI*W EASEYENT 43 37 , Noe°4o'oo'c , r50 ~ M 52°01'21'E 38 CEI(TERUNE S{' CNAIRIIFT /CMp1RUFT EOSEYENT "EASEMENT - ?~40 57.411' 4 ir.s3' ACT 42 N12°41'70~~E 50.12~ N10°f7'0I'W 20'00'E . 1.84' 3Z ,_•y-~ j N12~3950'E TRACT H ~ 3~ e~ AGCESS S00°16'49 M 48.99 N 40-17~WM 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. , . -6- 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. -7- 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. -8- 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. -9- 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 -10- ' 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. -11- 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. -12- 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. -13- 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 -14- 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. -15- 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. -16- 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. -17- 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 -18- 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 -19- 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 -20- 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, -21- 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. -22- 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 -23- 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 -24- 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. -25- 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 -26- 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 -27- HAhiMElt • SILFR • GE(4kCE • AS.XX'LcI'FS 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. -28- R'Lkib1ER • S1I.FR • GECMi(z • ASSOCLA~I'FS . '•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 -29- 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 -30- 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 -31- 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 -32- N.1AMtER - SIIFR - GF.()t,F. • r1SS(X L-CI'FS « 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 -33- 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 -34- 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. -35- }-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