HomeMy WebLinkAbout1988-01-05 Support Documentation Town Council Regular SessionVAIL TOWN COUNCIL
REGULAR MEETING
TUESDAY, JANUARY 5, 1988
7:30 p.m.
AGENDA
1. Presentation of Plaques to Paul Johnston and Hermann Staufer for their
Service on the Vail Town Council
2. Ten Year Anniversary Award to Mike McGee
3. Approval of Minutes from December 1 and 15, 1987 Meetings
4. Appointment to the Local Liquor Licensing Authority Board
5. Ordinance No. 1, Series of 1988, first reading, an ordinance amending
Chapter 5.04 Annual Business License to provide for a definition of
seasonal business and to set forth a business license fee for a seasonal
business; setting forth the method by which business floor area shall be
measured; providing a new definition for premises; setting forth a new
license fee for the rental of dwelling and accommodation units based on the
number of units rented; providing that Chapter 5.04 shall be effective for
only one (1) year unless extended by the Town Council; and setting forth
details in regard thereto.
6. Ordinance No. 2, Series of 1988, first reading, an ordinance. accepting
certain improvements constructed and installed in and for Town of Vail,
Colorado, West Vail Local Improvement District No. 1, determining the total
cost thereof, receiving and accepting the assessment roll apportioning the
cost thereof to be paid by special assessments as among affected properties
within the district, assessing said cost as apportioned therein against
each assessable lot or tract of land within the district. specially
benefitted by said improvements, prescribing the method of paying and
collecting said assessments, describing the lien securing payment thereof,
making necessary findings with respect to the satisfaction of all
conditions and requirements relating to the foregoing, and limiting actions
challenging the proceedings.
7. Resolution No. 1, Series of 1988, a resolution setting forth the Town
Council of the Town of Vail's objection to the Homestake II water diversion
project.
CITIZEN PARTICIPATION
8. Town Manager's Report
9. Adjournment
VAIL TOWN COUNCIL
REGULAR MEETING
TUESDAY, JANUARY 5, 1988
7:30 p.m.
EXPANDED AGENDA
7:30 1. Presentation of Plaques to Paul Johnston and Hermann Staufer
for their Service on the Vail Town Council
7:40 2. Ten Year Anniversary Award to Mike McGee
7:45 3. Approval of Minutes from December 1 and 15, 1987 Meetings
7:50 4. Appointment to the Local Liquor Licensing Authority Board
Action Requested of Council: Appoint one member to the
Board.
Background Rationale: To date, Colleen McCarthy is the only
applicant for the .opening. Council does have the option, if
you wish, to choose to keep the vacancy open until more
applications are received.
8:00 5. Ordinance No. 1, Series of 1988, first reading, regarding
Larry Eskwith the amendment of the business license fee ordinance
Charlie Wick
Action Requested of Council: Approve/deny Ordinance No. 1,
Series of 1988, on first reading.
Background Rationale: The Council, after receiving public
input on the new business license fee ordinance, directed
staff to make certain amendments to the ordinance.
Staff Recommendation: Approve Ordinance No. 1, Series of
1988, on first. reading.
9:00 6. Ordinance No. 2, Series of 1988, first reading, regarding
Stan Berryman West Vail assessments
Larry Eskwith
Charlie Wick Action Requested of Council: Approve/deny Ordinance No. 2,
Series of 1988, on first reading if Council has elected to
proceed with Local Improvement District financing of the
Town's street improvement program.
Background Rationale: In accordance with Vail Municipal
Code Section 20.04.120, this ordinance reflects the
assessments for the street improvements in the West Uail
Local Improvement District No. 1. Legal notices were mailed
to all property owners on 12/16/87. Legal notice was
published on 12/18, 12/25/87 and 1/1/88. Property owners
may object to the levy of assessments if they comply with
Vail Municipal Code Section 20.04.200.
Staff Recommendation: Approve Ordinance No. 2, Series of
1988, on first reading. If the Council decides to call all
or a portion of the West Vail bonds in 1988, a resolution or
ordinance would be passed at that time which would release
the home owners from their assessment obligations in an
amount equal to the number of bonds which were called.
9:25 7. Resolution No. 1, Series of .1988, opposing Homestake II
Larry Eskwith
Action Requested of Council: Approve/deny Resolution No. 1,
Series of 1988.
Background Rationale: The Resolution gives the Council an
opportunity to formally oppose the Homestake II water
diversion project.
Staff Recommendation: Approve Resolution No. 1, Series of
1988.
9:45 CITIZEN PARTICIPATION
10:00 8. Town Manager's Report
10:05 9. Adjournment
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MINUTES
VAIL TOWN COUNCIL MEETING
DECEMBER 1, 1987
7:30 P.M.
A regular meeting of the Vail Town Council was held on Tuesday, December 1, 1987, at
7:30 p.m. in the Council Chambers of the Vail Municipal Building.
MEMBERS PRESENT:
MEMBERS ABSENT:
TOWN OFFICIALS PRESENT:
Kent Rose, Mayor
John Slevin, Mayor Pro Tem
Eric Affeldt
Merv Lapin
Gordon Pierce
Tom Steinberg
Gail Wahrlich-Lowenthal
Ron Phillips, Town Manager
Larry Eskwith, Town Attorney
Pam Brandmeyer, Town Clerk
The first order of business was a horse drawn carriage agreement. Larry Eskwith
gaup background information and discussed past contracts the Town had with Steve
Jones. Mayor Rose asked questions-regarding the contract, which Stan Berryman and
Steve Jones responded. Kent then stated that page 6, paragraph B, line 4 should
read "Town Transit Superintendent" as shown in paragraph A. After discussion by
Council, Tom Steinberg made a motion to approve the contract with the noted changes.
John Slevin seconded the motion. A vote was taken and the motion passed unanimously
6-0.
The next item was Ordinance No. 39, Series of 1987, second-reading, regarding
business license fees. Mayor Rose read the full title. Larry Eskwith noted Section
numbering changes to be corrected on pages 6 and 7. Charlie Wick then reviewed
details of the ordinance and gave a slide presentation showing highlights of the new
plan. He then explained why he felt the ordinance was viable. He noted two
business owners' concerns who had phoned him that day. Mayor Rose requested Larry
Eskwith to review the issues he had researched in regards to this ordinance. Larry
explained what was illegal and what would possibly attract litigation and commented
on problems assessing a fee on a business which operated outside city limits. Noel
Belcher, who was on the Marketing Committee, commented why he felt the ordinance was
not fair and explained why he was against passing it. Colleen McCarthy aired her
feelings against the new plan. Mayor Rose explained it was not to support the Vail
Resort Association. David Kanally responded he was tired of being patient, that the
VRA has been and will continue to be a sound organization and they will bid along
with any other organization who want to bid for the job. Dave Simonett suggested
the Uail Associates merchant pass become a true pass and tie it to the business
license fee. Bruce Kendall, Vice Chairman of the VRA, read a letter from Joseph
Staufer supporting the new fee plan. Noel Belcher again emphasized the unfairness
of the fee. Rob Levine of the Antlers disagreed with Noel and expressed why he felt
it was basically fair just to start and urged the Council to pass the ordinance.
Mike Cacioppo commented why he did not like the fee and gave suggestions. He also
requested Gordon Pierce not be able to vote because he had at one time moved from
the town, to which Larry Eskwith responded. Ken Wilson questioned what would be
done with the money collected for marketing, what were the ideas and commented that
$600,OG0 was too small amount of money to do much. He requested the Town survey all
businesses and questioned that since URA was represented on the Committee if they
should be allowed to bid. Mayor Rose responded that the Council members needed to
meet soon to discuss goals for the next few months up to the next year. Charlie
Crowley aired his grievances with the new fee plan and commented how he felt it
should be handled. Mike Robinson of the Marriott explained the effort that went
behind the ordinance and recommended the Council get on with it. Ron Browr, a
general contractor in town, just found out the day before that he .needed a business
license. He stated he agreed the businesses should help pay for the marketing of
Vail, but recommended the Council not pass the ordinance now, but to look outside
the city limits to see who benefits from the town and seek financial support from
them, too. Cathy Bondrill, who has a store in West Vail and one in Crossroads,
commented she had compared the two and .opposed the new fee. Bob Doyle of The Menu
in West Vail stated he was against the ordinance and questioned if it was possible
to do this in the middle of next year, the possibilities of a discounted ski pass,
and the possibility of a combination of things. Joan Shelsta commented it was
already late for marketing for 1988 and getting close to time for 1989. She noted
the ordinance could change as we went along and get more information from more
people. Will Miller of Montaneros commented that when money was spent for
marketing, there usually was a return. He then suggested a toilet tax which would
make everyone a participant. Pat O'Brien of Ace Hardware agreed to the fee, but
explained it needed a wider base than square footage. Noel Belcher again commented
that if the Council did not feel ready to pass the ordinance, he would be willing to
start over, or to please send it to a public vote. Mike Robinson of the Marriott
suggested since the businesses were the main beneficiaries, it was time for action.
Chuck Crist, who was a member of the Marketing Committee, expressed his feelings.
Larry Benway stated he was against the fee. After more discussion by Mike Cacioppo,
Noel Belcher, Bob Doyle and Colleen McCarthy, a motion to pass the ordinance with a
sunset clause for three years and to be reviewed in one year was made by Eric
Affeldt. Gordon Pierce seconded the motion. A vote was taken and the motion passed
4-2, with Tom Steinberg and Merv Lapin opposing.
The third item was Ordinance No. 40, Series of 1987, second reading, regarding a
request to rezone the Garden of the Gods Club from public accommodation zoning to a
special development district. The full title was read by Mayor Rose. Kristan Pritz
stated a charge of a date in Section 5, page 3, from September 1, 2002 to December
1, 2007. She noted that all the required agreements were almost signed and they
needed to be completed before the ordinance was approved. John Slevin made a motion
to approve the ordinance subject to the conditions as noted by Kristan Pritz, and
Merv Lapin seconded. A vote was taken and the motion passed unanimously 6-0.
The next order of business was Ordinance No. 41, Series of
regarding modification of fees to be charged by the Town t•
Mayor Rose read the full title. Ken Hughey explained what
the ordinance was implemented. There was no discussion by
motion to approve the ordinance was made by Merv Lapin and
A vote was taken and the motion .passed unanimously 6-0.
1987, first reading,
~ monitor alarm systems.
the changes would be if
Council or the public. A
seconded by John Slevin.
The fifth item was Ordinance No. 42, Series of 1987, emergency reading, adding a
provision to the Municipal Code permitting snowcats on public streets for certain
special events. The full title was read by Mayor Rose. Larry Eskwith explained the
ordinance was drafted under the direction ~f the Council and what the ordinance
would allow and why. After a short discussion by Council, Tom Steinberg made a
motion to approve the ordinance. Gordon Pierce seconded the motion. A vote was
taken and the motion passed unanimously 6-0.
The next item was Ordinance No. 43, Series of 1987, first reading, requesting to
rezone property located at 1785 Sunburst Drive from low density multi-family to
single family residential. Mayor Rose read the title in full. Peter Patten
explained what the ordinance would do. There was a short discussion by Council. A
motion to approve the ordinance was made by Merv Lapin and seconded by Tom
Steinberg. A vote was taken and the motion passed unanimously 6-0.
The seventh order of business was the Amphitheatre lease agreement between the Town
of Vail and Vail Valley Foundation. Larry Eskwith noted what changes had been
requested at the Work Session that day and that the agreement had been revised to
reflect them. There was a short discussion by Council to include in Section 29,
page 9, after financial statement, "including balance sheets, profit/loss state~ent,
and endowment funds earmarked,". Eric Affeldt then made a motion to approve the
lease agreement as submitted with the changes recommended by Council that evening.
The motion was seconded by Gordon Pierce. A vote was taken and the motion passed
unanimously 6-0.
The next item of business was the appointment of an Election Commission. Pam
Brandmeyer stated that the Charter requires an Election Commission be appointed at
the first meeting in December following a regular municipal election. She noted the
term is for two years and the individuals would not receive compensation. She then
stated her nominees as reguiar members were Lauralee Swetish and Kathy Rossi, with
Celine Krueger and Vi Brown as alternates. After a brief discussion by Council, Tom
-Z-
Steinberg made a motion to approve the appointments and John Slevin seconded. A
vote was taken and the motion passed unanimously 6-0.
There was no Citizen Participation.
Under the Town Manager's Report, Ron Phillips noted that he wanted to recognize
Charlie Wick who had parried the full load on the business license fee plan over the
last eight months and had done a remarkable job. He then stated there would be no
Work Session on December 22 or 29, that after the the December 15 Evening Meeting,
there would be r,o Council meetings until the new year.
There was a brief discussion over the procedures for passing an ordinance which
needed more work done on it. There was then more discussion on business license
fees and how things could have been handled differently; how perceptions were bad.
There being no further business, the meeting was adjourned at 10:B5 p.m.
Respectfully submitted,
Kent R. Rose, Mayor
ATTEST:
Pamela A. Brandmeyer, Town Clerk
Minutes taken by Brenda Chesman
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MINUTES
VAIL TOWN COUNCIL MEETING
DECEMBER 15, 1987
7:30 P.M.
A regular meeting of the Vail Town Council was held on Tuesday, December 15, 1987,
at 7:30 p.m. in the Council Chambers of the Vail Municipal Building.
MEMBERS PRESENT:
MEMBERS ABSENT:
TOWN OFFICIALS PRESENT:
Kent Rose, Mayor
John Slevin, Mayor Pro Tem
Eric Affeldt
Merv Lapin
Gail Wahrlich-Lowenthal
Gordon Pierce
Tom Steinberg
None
Ron Phillips, Town Manager
Larry Eskwith, Town Attorney
Pam Brandmeyer, Town Clerk
Before the meeting began, the Vail Community Chorale sang Christmas carols for
everyone.
The first order of business was a farewell to Rich Parzonko, Controller for the
Town. Ron Phillips commented Rich was not present at the moment, and wanted the
item postponed until later during the meeting.
The next item was the approval of the minutes from the November 3 and 17, 1987
meetings. Gail Wahrlich-Lowenthal questioned page 2, last paragraph, line 9, and
asked that the tapes be listened to, that she did not remember saying what was noted
in the minutes. Since there was no other discussion on the minutes, Eric Affeldt
made a motion to approve the minutes as presented, including to check on the line as
requested by Gail. Gordon Pierce seconded the motion. A vote was taken and the
motion passed unanimously 7-0.
The third item of business was the selection of the Vail Marketing Committee. Ron
Phillips stated that seven people had been recommended by Community Development and
nine more had sent in their resumes. He noted those interested in serving were Tom
Boselli, Randy Garman, Kaiser Morcus, Del Schooley, Mark Smith, Dan Telleen, Cathy
Von Dreele, James Gibson, Colleen McCarthy, Michael Sansbury, Janet Heidmiller-
Shipka, Beth Slifer, Jan Strauch, Michael Wasmer, Kenneth Wilson and William Downs.
Ron then stated it had been discussed at the Work Session that day that it might
be appropriate for seven to be chosen for the committee instead of five originally
thought. He said if Council members agreed, to vote for seven instead of five. The
Council voted in Tom Boselli, Mark Smith, Dan Telleen, James Gibson, Michael
Sansbury, Beth Slifer and Jan Strauch for the committee members. Mayor Rose
suggested the Council hold a Work Session on Tuesday, December 29, 1987 at 2:00 p.m.
to meet with the group, and the Council could also summarize the goals they talked
about at the Work Session today.
The fourth order of business was a consent agenda for the following:
A. Ordinance No. 41, Series of 1987, second reading, regarding modification
of fees to be charged by the Town to monitor alarm systems.
B. Ordinance No. 43, Series of 1987, second reading, requesting to rezone
property located at 1785 Sunburst Drive from low density multi-family to single
family residential.
Mayor Rose read the full titles. There was no discussion by Council or the public.
A motion to approve the ordinances as presented was made by Tom Steinberg and
seconded by John Slevin. A vote was taken and the motion passed unanimously 7-O.
The next item was an intergovernmental agreement between Eagle County and the Town
of Vail for snow and ice removal services in West Vail. Stan Berryman noted this
was an annual contract with Eagle County and explained what areas were included in
the agreement, and that this agreement was the same as what was used for the last
two years with only mileage changes. He then explained how the price was figured.
After a brief discussion by Council, Merv Lapin made a motion to approve the
agreement as presented, which John Slevin seconded. A vote was taken and the motion
passed unanimously 7-0.
Under Citizen Participation, Jim Lamont spoke about Homestake II. He explained
where it stands presently, and why he recommended the Town to review and make their
comments known to the Commissioners. He noted the Town had until January 12, 1988
at 5:00 p.m. to submit their comments, and recommended denial from all Eagle County
municipalities. He and Larry Eskwith then answered questions from Council. He
advised the Council to take all the findings of fact, evaluate and submit a
resolution for denial and submit by January 12. Ron noted the Council's decision
from earlier this year and explained the how they were planning to proceed. Larry
Eskwith commented on the legal aspects. Jim Lamont commented that the Town should
be prepared. Mayor Rose thanked Jim for updating the Council and stated that action
on this item was scheduled for the January 5, 1988 Evening Meeting.
Under the Town Manager's Report, Ron Phillips thanked the Vail Board of Realtors for
donating $440 to the Library, which would be used to purchase books on marketing and
financial planning. He also thanked them for cosponsoring the children's program at
the Library tomorrow. Ron then commented there had been an anonymous $2,500
contribution to the Library to be used for creative children's programs in 1988. At
this time, it was noted Rich Parzonko was still not present, and that Rich had only
wanted to thank the Council for all the opportunities offered him here. He had
taken a position as Finance Director in a new city in California, near San Diego.
Ron and Mayor Rose then expressed their best wishes for Rich.
There being no further business, the meeting was adjourned at 8:25 p.m.
Respectfully submitted,
Kent R. Rose, Mayor
ATTEST:
Pamela A. Brandmeyer. Town Clerk
Minutes taken by Brenda Chesman
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ORDINANCE N0. 1
Series of 1988
AN ORDINANCE AMENDING CHAPTER 5.04 ANNUAL BUSINESS
LICENSE TO PROVIDE FOR A DEFINITION OF SEASONAL BUSINESS
AND TO SET FORTH A BUSINESS LICENSE FEE FOR A SEASONAL
BUSINESS; SETTING FORTH THE METHOD BY WHICH BUSINESS FLOOR
AREA SHALL BE MEASURED; PROVIDING A NEW DEFINITION FOR
PREMISES; SETTING FORTH A NEW LICENSE FEE FOR THE RENTAL
OF DWELLING AND ACCOMMODATION UNITS BASED ON THE NUMBER
OF UNITS RENTED; PROVIDING THAT CHAPTER 5.04 SHALL BE
EFFECTIVE FOR ONLY ONE (1) YEAR UNLESS EXTENDED BY THE
TOWN COUNCIL; AND SETTING FORTH DETAILS IN REGARD THERETO.
WHEREAS, the Town Council has recently repealed and reenacted Chapter 5.04
Annual Business License; and
WHEREAS, the Town Council has received input from the citizens of the Town and
the Town staff relating to the new business license ordinance; and
WHEREAS, the Town Council wishes to implement said input.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL,
COLORADO, that:
1. Section 5.04.020 Definitions of the Municipal Code of the Town of Vail is
hereby amended by the addition of paragraph 0 to read as follows:
5.04.020 Definitions
0. Seasonal Business means any business conducted for a period of not
more than six (6) months per year.
2. Section 5.04.020 Definitions, subparagraph M is hereby amended to read as
follows:
5.04.020 Definitions
M. Business Floor Area shall mean the number of square feet located
within a premises as defined in this Section. Square footage shall be measured
from inside wall to inside wall.
3. Section 5.04.020 Definitions, subparagraph E is hereby amended to read as
follows:
5.04.020 Definitions
E. Premises means any structure, lodge, store office, sales room,
warehouse, or other place of business situated within the Town which is owned,
leased or occupied by a business.
4. Section 5.04.040 Fee is hereby repealed and reenacted to read as
follows:
5.04.040 Fee
An annual business license fee shall be paid by every person doing
business within the Town in accordance with the following schedule:
A. 1. Any person who engages in the short term rental of ten (10) or
more dwelling units and/or accommodation units for consideration to one who uses,
possesses or has the right to use or possess such accommodation unit and/or
dwelling unit shall pay a minimum annual fee of four hundred dollars ($400) and in
addition shall pay thirty-six dollars and twenty cents ($36.20) for each
accommodation unit and/or dwelling unit in excess of ten (10) units.
2. Any person who engages in the short term rental of less than ten
(10) accommodation units and/or dwelling units for consideration to one who uses,
possesses or has the right to use or possess such accommodation unit or dwelling
unit, shall pay an annual fee of forty dollars ($40) per each such unit rented.
B. Restaurants shall pay a minimum annual fee of four hundred dollars
($400), and in addition, shall pay sixteen dollars and seven cents ($16.07) for
each seat in excess of twenty-five (25) seats based upon the number of seats
located within the restaurant during the winter ski season. For the purposes of
this ordinance, a seat shall include a chair, stool, sitting mat or sitting pillow.
In addition, every twenty-four (24) inches of booth or sofa shall be considered a
seat and every twenty-four (24) inches of bar shall also be considered a seat if
stools are not utilized for customers at the bar.
C. Ski Companies
Ski companies shall pay an annual fee of fifty-five thousand dollars
($55,000).
D. Athletic Clubs
1. Athletic clubs containing more than two thousand nine hundred
eighty five (2,985) square feet of business floor area shall pay a fee of one
thousand dollars ($1,000).
2. Athletic clubs with less than two thousand nine hundred eighty
five (2,985) square feet of business floor area shall pay an annual fee of four
hundred dollars ($400), and in addition, shall pay thirty-one cents ($.31) for each
square foot of business floor area in excess of one thousand fifty-two (1,052)
square feet up to two thousand nine hundred eighty-five (2,985) square feet of
business floor area.
E. Home occupations shall pay an annual fee of seventy-five dollars
($75).
-2-
F. Seasonal businesses shall pay an annual fee of two hundred dollars
($200), and in addition, fifteen dollars and five cents ($15.05) for each square
foot of business floor area in excess of one thousand fifty-two 11,052) square feet
up to a maximum of thirty thousand (30,000) square feet of business floor area.
G. All other businesses shall aay an annual fee of four hundred dollars
($400), and in addition, thirty-one cents ($.31) for each square foot of business
floor area in excess of one thousand fifty-two (1,052) square feet up to a maximum
of thirty thousand (30,000) square feet of business floor area.
H. Any single business other than a ski company or athletic club, which
is a combination of two (2) or more of the categories set forth in this Section,
shall pay an annual license fee which shall be the sum of the fees computed as set
forth herein for each category, however, each such business shall be required to
obtain only one (1) business License.
5. Section 5.04.140 Termination is hereby amended to read as follows:
5.04.140 Termination
This Chapter 5.04 Business License shall terminate and cease to be
effective on December 31, 1988 unless extended by the Town Council on or before
said date.
6. If any part, section, subsection, sentence, clause or phrase of this
Ordinance is for any reason held to be invalid, such decision shall not affect the
validity of the remaining portions of this Ordinance; and the Town Council hereby
declares it would have passed this Ordinance, and each part, section, subsection,
sentence, clause or phrase thereof, regardless of the fact that any one or more
parts, sections, subsections, sentences, clauses or phrases be declared invalid.
7. The Town Council hereby finds, determines and declares that this
Ordinance is necessary and proper for the health, safety and welfare of the Town of
Vail and the inhabitants thereof.
8. The repeal or the repeal and reenactment of any provision of the
Municipal Code of the Town of Vail as provided in this Ordinance shall not affect
any right which has accrued, any duty imposed, any violation that occurred prior to
the effective date hereof, any prosecution commenced, nor any other action or
proceedings as commenced under or by virtue of the provision repealed or repealed
and reenacted. The repeal of any provision hereby shall not revive any provision
or any ordinance previously repealed or superseded unless expressly stated herein.
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INTRODUCED, READ AND APPROVED ON FIRST READING this day of ,
1988, and a public hearing shall be held on this ordinance on the day of
_ 1988, at 7:30 p.m. in the Council Chambers of the Vail Municipal
Building, Vail, Colorado.
Ordered published in full this day of
1988.
Kent R. Rose, Mayor
ATTEST:
Pamela A. Brandmeyer, Town Clerk
Kent R. Rose, Mayor
ATTEST:
Pamela A. Brandmeyer, Town Clerk
INTRODUCED, READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED
this day of 1988.
-4-
RESOLUTION N0. 1
Series of 1988
A RESOLUTION SETTING FORTH THE TOWN COUNCIL OF
THE TOWN OF VAIL'S OBJECTION TO THE HOMESTAKE II
WATER DIVERSION PROJECT.
WHEREAS, the Town Council of the Town of Uail believes that diversion of water
to the East Slope by Homestake II will cause concentrations of toxic heavy metals
to exceed water quality standards set by the Colorado Department of Health and
reduce water quality on the Eagle River; and
WHEREAS, the Town Council of the Town of Uail is aware of testimony presented
during the Homestake II hearings which established the fact that Homestake II will
result in a loss of valuable wetlands within the Holy Cross Wilderness area; and
WHEREAS, the combined effects of Homestake II would degrade many of the
natural amenities that have enabled the Town of Vail and Eagle County to develop a
healthy and stable economy based upon summer and winter tourism and recreation;
and
WHEREAS, Homestake II clearly violates the Eagle County Master Plan; and
WHEREAS, Homestake II is only one phase of a much larger plan for
transmountain water diversion to the Colorado Front Range which in the aggregate
will have a devastating impact on the economy and the environment in the Town of
Vail and Eagle County.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL,
COLORADO, that the Town Council is strongly opposed to the Homestake II Water
Diversion project for the following reasons:
1. Violation of water quality standards on the Eagle River.
2. Loss of wetlands.
3. Degradation of our natural environment and its effect on our economy..
4. Clear violation of the Eagle County Master Plan.
INTRODUCED, READ, APPROVED AND ADOPTED this day of
. 1988.
Kent R. Rose, Mayor
ATTEST:
Pamela A. Brandmeyer, Town Clerk
town of uaill%
75 south frontage road department of public works/transportation
vail, Colorado 81657
(303) 476-7000
MFM(1T2 D TTTITTM
T0: RON PHILLIPS
FROM: STAN BERRYMAN
DATE; DECEMBER 30, 1987
RE: TOWN OF VAIL TRAVELER'S INFORMATION RADIO STATION
This memo is to bring you up to date regarding the status of the Town's
T.I.S. radio station.
We have experienced several problems this ski season in getting the Town's
radio station in operational condition. The Town has a maintenance agree-
ment with Marty Hijmans (the only radio engineer in eagle County). Marty
made repairs to the radio transmitter this week.
The leased phone line from the transmitter in the dispatch office to the
radio antennae at the Town Shop still is malfunctioning. Mountain Bell
is to make repairs to the line this week and the radio station should
be operational by New Year's Day.
SBJajm
T O W N O F V A I L
INTEROFFICE MEMORANDUM
8712-2301
T0: All Media
FROM: Karen Morter
SUBJECT: Town Council Press Conferences
DATE: December 30, 1987
In an effort to increase communications with the Vail Valley
press, the Vail Town Council will start holding monthly Press
Conferences which will be scheduled every third Tuesday at
1:00 PM in the Town Council Chambers. Agendas for the
Council Work Sessions will include the press conference
information as a reminder to you to come at 1:00.
The first scheduled Press
Tuesday, January 19, 1988.
Conference will take place on
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T0: Lt. Mulson
FROM: Kathy Roth
DATE: 12/11/87
RE: Citizen Assist
I received a call from Stewart Crow homeowner at 1250 Ptarmigan Rd.
complimenting Jason Parsons and JR Mondragon. They assisted a RAC
delivery truck in backing into his driveway.. However, the truck still
stuck out on the road, .causing a potential problem for the buses. The
truck driver, JR and Jason. lifted a hot tub from the truck to expedite
the truck leaving. Mr. Crow said they had a "great attitude".and went
well beyond their job duties to help him out. He wanted to tell their
supervisor, .t he `Chief of Police and whoever else needed-to-know!
CC: Chief .Hughey
Ron Phillips
Cathie Jarnot
~' } f ~autho
=.SRA Nkn~ew identit ~,.® r,
v
w t Id o. call :.:Macy sa s --3 ,.r
as o
~
~_
_ . p.
- by John Colson -. = _ ~
that~Mace has had her permission :_ : ~....
~: .
orado, apart of the network's Por-
The Snowmass Resort Associa- to use the poem for a number of trait Of America series, and that -
tionwas told to check with a New .personal, spiritual and education- he liked the poem and wanted to
_
Mexico poet-before using her
poem in Snowmass' 1987 summer ~ aI purposes. -- -~ "'` ~ ~ ~. -
But, Wood insisted last week, ` use it.' '""
Mace, contacted this week, said
brochure, which is at the center of she never gave the Snowmass Re- - he got a call from SRA two years
a $100 million lawsuit filed by the sort Association permission to use ago, "saying they had an interest -
poet recently, according to a local
man who is a friend of the poet. _ the poem in the brochure.
She said the SRA's use of the ~ in it. I told them at the time it was
Nancy Wood's work and they ;
Stuart Mace, owner of the Tok-
lat Lodge at Ashcroft and along- poem, in which it was misidenti-
feed as being about the Ute Indi- should get ahold of her .:.- they
`didn't bother. It's that simple.-
'
time resident, acknowleged this ans, has angered her Taos Indian And it's a matter of manners more
week that he read the poem on a
1985 television show, the same. friends, who are traditional ene-
mies of the Utes. - than anything."
Hunt, contacted by the Aspen '
poem that ultimately ended up in She also said the use of the Times, has refused to comment on
the Snowmass brochure. poem has jeopardized her work, the matter, saying he has not yet
The poem, from a 1972 book by which is to live among the Taos been served the legal papers re-
author Nancy Wood of Taos, NM, _ Pueblo Indians and portray them garding the lawsuit and that the
is about the Taos Pueblo Indians ` in pictures and in text. She has matter would be handled by
and is an evocative representa- published three books about the SRA's legal staff.
tion of their.'relationship with Taos Pueblo and is in the middle - The suit, which alleged copyr-
nearby Taos~Mountain, which of a fourth. fight infringement on the part of .
they consider a holy site. SRA head Terry Hunt reported- SRA and asks for $100 million in
Both Wood and Mace said they ` ` ly has said he saw Mace read the `damages, `was filed Dec 1? in the
have been friends for years and poem on a TBS show about Col- " US District Court in Denver.
- - .,. a , .. ,.
~,_.__.- __- -~._,,.~--r-~ --"•-"mss----~*------___ _^.^'----------._~,..~_,._...__.._.__•..,.m...~-,_-,_. --_-..~_---~--_ _. _ .,__ _..... _. w...
,,.
..
~~ `.. M,,. ,,. , -,.
s
~: . . _ , .,~~,~~: '~, e~~~.. ~~ ,,., . rt _
a ,.,_ ., .
December 24,1967 . The Aspen Times; Paae 3•A :
r r
s en raven ue a eco_ , , .
~. .. ...
. .
..~ ~.
~.w ..._
~ Record high income from ' 61% increase over theysame' the following month,'local sales' two percent tax. a ~~ ;, those businesses~there located in 1
` ~ Aspen's real estate transfer tax ;period last year and higher than' taxes are rnllected by the state. " : A .third penny county tax, Pitkin County.
' (RETT)' in November raised re- ' any full year in the tax's history. ; department of revenue and repaid which is not collected inthat por- Total earned by the county's
' ~ venue for the first 11'months of~~ Previous'record year for the to local governments-two months ; tion of Basalt within the county one percent tax' dedicated to
this year above that for any full ~ RETT was 1986, when a -record ' later - ~= ~ -and is dedicated to RFTA (Roar- RFTA. was $2,787;070.`Of this
year in the tax's eight•year hfe, . , , $109,984 was collected in Decem• ' = ing Fork Transit Agency) use, amount, $1,869,554 came from ~
~' °'''~' " ~ '" =~ '' ` ~ ''; bar, bringing the 12•month'total Revenues from Aspen and Pit- earned $113,406 in October, an Aspen; $547,468 from Snowmass
a November' RETT revenue was r. to $431,284. - kin County sales taxes were up ' increase of 3.4% from October, Village, and $370,048fromthe re- t
" ' $65,352; an increase of 199%from Income fromthe first 11 months slightly in October from the same. 1986. ' ' naainder of the county ... ~; " ;
°' the same mo .nth' last~year and ~ ~ of the RETT covered 389 transac- ` month last year, but less than in-' r'~ -: , Since this sales .tax was made ',
~_.
higher-than any,hlovember since ~.. tions; with 131 exemptions,`also " flationwith a 2,8%increase in the ' Of this total, $78,923 was col- ~ possible by rescision of existing '' ~
q . the ~/~ percenttax was initiated m F' record numbers for any past foil ' city and a 4.4%hike in the county..' lected in Aspen, $4,653 in Snow- ' one percent sales taxes is Snow- , y
a 1980. .' ~ year ' ° "' Reports prepared by the Aspen mass Village and $29,830 was re-..mass Village and Aspen,' all of it ~
This' covered 46 transactions, ~ Finance Office show that $69,208 tamed by the county;. $2,410,596 collected in Snowmass is rebated, ,
' while another eight were ex- Sales~Taxes '" " ' was collected by the city's one per-= was distributed 'to Aspen;'"',while~Aspen `receives'funds`for°.
empted, and brought the total for ; Unlike the RETT, which is col- cent sales tax in October and ' $768,147 to Snowmass Village, debt service ,food tax refunds and
the first 11 months to $517,609, a lected by the City and reported $229,528 by the county's original and $11,304 to Basalt, covering mall maintenance. ` '
~~';d~~ r~f,i~~a~d~+'~i~l 'i~~l 1~'I ~fiY'd".. ,!
Page 8-A The Aspen Times December 24,1987
^ ,.
n counc~ orce
wo 0
Although it was approved by over $1 million from city taxes, approved by the council last week
four of Aspen's five council mem- how they can turn down funds for: includes $60Q,000 for purchase of
:bars last week, the 1988 Roaring a downtown shuttle." 6vesmallerbuses,butnothingfor
Fork Transit Agency (RFTA) RFTA Financing the downtown shuttle.
budget should be reconsidered, A special county-wide, one- Another reason hewouldliketo
'two of the three members at Mon- percent sales tax dedicated to have the transit agency budget
,day's meeting decided. RFTA was initiated in 1985 after reconsidered, Stirling asserted
Michael Gassman, who criti- Aspen and Snowmass Village Monday, is that"Aspen is the only
`sized the agency for being stodgy agreed to rescind one percent of city I know with a busy airport
"
' `and unimaginative last week but their separate two-percent sales and no bus service.
voted for the budget, requested taxes. ' High Cab Rates
ahe reconsideration Monday., Although Snowmass is re- As he did at the December 14
He called the transit agency "a funded the full amount of the tax session, when he said he had paid
moribund operation" that lacked it rescinded, the preponderance of $12 to take a cab from the airport
`vitality and imagination, adding the tax rescinded in Aspen goes to to Aspen, Stirlingcomplained ab-
"that reconsideration ofits budget RFTA after Aspen is repaid out high taxi rates.
.."is the only chance we have now to money for mall maintenance, food He told the council that Mellow
improve it•" tax rebates, and debt service. Yellow charges $1.50 a mile and
Stirling, who cast the lone dis- The council had `previously that High Mountain had recently.
' Renting vote against the 1988 asked RFTA to budget funds for received PUC approval for a rate
`RFTA budget on December 14, smaller buses for existing shuttle of $1.80 a mile.
;8greed, pointing out that of the routes and fgr initiation of a This is above the rate charged
'agency's various bus routes, only downtown shuttle linking the Rio.-
:three "are pure city routes." Grande with Rubey Park andlor
u All the others serve the county, Aspen Mountain.
"andIamastoundedaftergetting The $2,664,145 budget
bus review
in many other cities, added Stirl-
ing, reading a list of mileage
charges in others, including $1.20
a mite in New York City and $l a
mile for Miami.
While studying taxi fares, "I
was struck by the fact that our
airport has no bus service," he ex-
plained and the fact visitors and
residents are forced to pay the
high local taxi rates.
.After additional discussion, a
motion by Gassman to reconsider
the 1988 RFTA budgtet at the
next. regular meeting on January
11 was supported by Stirling, but
opposed by Isaac. Pat Fallin and.
Bill Tuite were absent,
Controlling Boots
During the discussion Isaac
said he would be interested in pro-
hibiting or controlling the prac-
tice of booting cars, even when on
private property:
Booting unauthorized cars in
private parking lots and charging
$50 to have the boot removed has
aroused many complaints to.city
officials and created much ill will.
Aspen police say they do not
approve of the practice and do not
use it on city streets, but have no .
control of what is done to cars on
private property.
Supporting Isaac's desire to'
look into controlling the practice,
Stirling agreed it had irritated
many people and suggested it also
be placed on the January 11
agenda.
The other two council members
agreed and. the vote to discuss
boot controls at the January 11
session was unanimous.
T0: Ron Phillips and Peter Patten
FROM: Betsy ~~
DATE: -January 4, 1987
SUBJECT: -Termination of several members' terms on DRB and PEC
On February 1, Grant Riva's term on DRB will expire. This is
also the date of expiration for Diana Donovan, Pam Hopkins,
Peggy Osterfoss, and Jim Viele on the Planning Commission.
Also, J.J. Collins has indicated that he is moving out of town
in January, which makes 5 vacancies on PEC.
Brenda and I have scheduled interviews for these 6 positions
during the work session on February 2 and appointments that
evening.
CHAMBER FORUM LUNCHEON ~EC~~ ~A~ 4 i~3~
LOCATION: Windows, Marriott Mark Resort
DATE: Tuesday, January 12, 1988
TIME: Cash bar 11:30` Lunch at Noon
PRICE: $7.50 for members-$8.50 for non-members
The 1989 World Championships are right around the
corner and it is time to start gearing up for this
special event. Mr. Bob Knous, Vail Valley Foundation's
president will highlight on what we should expect, how
we should get prepared, and on how we can ge,t the most
from this special occasion. Don't miss this opportunity!
For reservations contact Teresa Savage by Friday,
January 9 at 476-1000 ext. 135.
,3
~.
VAIL RESORT ASSOCIATION, 241 E. Meadow Drive, Vail, Colorado 81657
~~ ~
town o
75 south frontage road
vail, Colorado 81657
(303) 476-7000
MEMORANDUM
TO: Vail Town Council
S`~`~"~
FROM: Finance Staff (~/
DATE: January 5, 1988
RE: Sales Tax on Retail Deliveries to Vail
The purpose of this memo is to address several questions which
have been raised recently, about the collection of Vail sales tax
on items delivered to Vail.
The Town of Vail's new sales tax ordinance imposes sales tax on
all retail goods that are purchased outside of Vail but delivered
to Vail. This procedure is the same as for all other Colorado
municipalities which collect their own sales tax. The primary
purpose for this measure is to remove the current competitive edge
enjoyed by businesses located outside of Vail. In the past, these
businesses were able to sell retail items in Vail without charging
the four percent TOV sales tax.
The Town staff is making every effort possible to ensure that all
businesses which deliver retail goods to Vail collect the
appropriate sales tax. Our efforts include public notification of
area businesses as identified through the newspaper and yellow
pages. We will also use the list of companies heavily involved in
retail delivery which has been compiled by municipalities in the
Denver Metropolitan area. We also expect to receive complaints
from local businesses who are aware of competitors who are not
collecting Vail sales tax.
These measures, when combined with our legal capability to audit
all businesses who make retail sales in Vail, should allow Town
staff to adequately enforce the collection of sales tax by outside
vendors.
SHB/ds
~owo v
75 south frontage road
vail, Colorado 81657
(303) 476-7000
MEMORANDUM
TO: Vail Town Council
FROM: Finance Staff
v~ pN e
DATE: January 5, 1988
RE: Sales Tax on Construction Materials
Vail's new sales tax ordinance currently imposes sales tax on
retail goods and construction materials that are purchased outside
of the Town yet delivered to Vail. Those retail goods and
construction materials which are purchased outside of Vail and
brought here by the ultimate consumer of those goods are not
subject to Vail's sales tax. The collection of this tax on
delivered retail goods should proceed fairly smoothly., however the
collection of sales tax on delivered construction goods probably
will not be as smooth.
The following options have been prepared in order to amend the
sales tax ordinance, if necessary, as it relates to the sales tax
on delivered construction materials.
Staff recommends that this issue be resolved as soon as possible
in order to alleviate confusion by area businesses.
OPTION A-- No Change
The primary problem with this option is that it will be confusing
and difficult to enforce. The current wording of the ordinance
encourages consumers of construction materials to circumvent the
system by personally picking up (or pretending this was the case)
all materials used in their construction project.
SALES TAX ON CONSTRUCTION MATERIALS MEMO
JANUARY 5, 1988
PAGE 2
OPTION B--Exempt Construction Materials from Sales Tax
Construction material is generally defined as any material to be
used in a project for which a building permit has been issued.
Simple exemption of such items would do much to relieve the
confusion in this area. However, some businesses would still
experience some difficulty. For instance, a glass company in
Minturn would be required to collect sales tax on sales to all
customers who are unable to produce a building permit.
OPTION C--Use Tax on Construction Materials
Virtually all Colorado municipalities who collect their own sales
tax solve the construction material issue by enacting a use tax.
A use tax assures that taxes will be paid on all construction
materials used in Vail regardless of their origin.
Staff estimates that a 4% use tax on construction materials would
generate approximately $300,000 in an average year which could be
used for items such as:
o Replace funds from expired Street Use Tax (averaged
$102,500 over last six years)
o Capital Projects
o Sales Tax Vendor's Fee
o Marketing of Vail
Staff recommends that Council exempt construction material from
sales tax. If Council wishes to tax construction material, staff
would recommend the creation of a Use Tax.
SHB/ds
' Sunday, January 3, 1988 . 'rtll: IxayyER I'c)ST
~ ~ . ' _,- ~ _ ~ b_
• ... •
Y Gillett ~~ la ed a alnst
~~ dds to ama~~s a 're
o
,
~~By Paui Richter` most influential -and controver-
,os.Anyeies Times,:r sial - of broadcasters. With 12 ma-
.~; NASHVILLE, Tenn. -Nearly 20 jor stations that reach 13 percent
.,years. sago; George Gillett put to- of the U.S. television audience, he
"gether his first diversified busi- is the. very model of .the new broad-
;Mess. Buying and borrowing, laying cast entrepreneur; borrowing
;;.brick on brick, he troweled togeth- heavily, bidding high and wringing
er a small conglomerate that in- from his stations profits unima-
' ;eluded the Harlem Globetrotters gined by the family concerns that..
',basketball team, agolf-club mak- once dominated the industry.
rer, radio stations andretail boat ~ ; ` Gillett takes aggressive advan-
franchises.~. " tage of broadcast deregulation;
Gillett's tower rose to the sky - prompting some in Congress to
•until the 1975 recession hit, earn- charge that he has sought to dodge
`ings dwindled and he was forced to government rules limiting station
sell assets, to pay debts. ownership and has exploited tax
Gillett;`. whose company owns breaks offered to minority TV sta-
;,Vail and Beaver Creek ski resorts, tion owners.
started over in the television sta- Gillett also has won respect for
$tion business in 1978, borrowing. his ability to improve stations' fi-
i'arid buying, piling paper on paper,: nancial performance and for his in-
!until. by_this year he had amassed terest in quality broadcast news.
wthe largest group Hof network-affili-
- Buying and selling at a rapid.
zated stations outside
those. owned clip, Gillett has purchased 12 ma-
~t~y the networks themselves. ` jor-market stations for $1.26 billion
a~ People said Gillett was a major oven the past year. Gillett H.old-
~player. And some people wondered ings, his closely held company,
.:about his debts.: paid more than $600 million fora 51
' * "They- say we borrow too much, percent interest in six of the: seven
,i+hat we bid too high,. and in the' stations formerly owned by the
.face of -.that cautiousness, we- now-defunct Storer Communica-
4 charge ahead," ,says Gillett, 49, a tions and $365 million for a majori-
<~roluble man whose voice seems to ty interest in a big Tampa, Fla.,
,;boom from a barrel. ".Why do we station..
'do, it? .Why does the salmon swim The company also owns a< Wis-
~~pstream?" cousin meatpacking company, and
In the. past .two years; this one- it recently. sold another five
me salesman has .emerged from
~bscurity o become one of the Please see GILLETT on 14-G
~
Cam)
~.~ ,.~.
`~I:: h=Make
rf~riili~,r -to
.~,.
,ILLETT jiQfn Page a-G
~Uons'~to"a trust set" up for Gil-
ft's children. Gillett Holdings' TV
~~ations now include three in Cali-
- fOt'-na ' z1~ w s.., . >: ~r •
-' '~ #Ie has-" assembled` the chain
$gamst daunting competition, for
'ih•recent years TV stations have
`'attracted the hungry-eyes of major
media corporations and invest-
~9ment heavyweights such as War-
:€2en Buffett and Saul Steinberg.
ns~,.
Wing profits , .'
,'These investors prize stations for
eu• ability to turn profits in good
yy~ries and bad and.for their ready
-,~narketabilitiy; they favor network
-1'affiliates'in particular because of
Jbeir strong attraction for TV audi-
` en~es. _ , . .
~~~yBut Gillett has usually been will- .
`ing to bid more for properties, bet-
tir;g always that hiss. strategy _for
;,managing the stations would make
"; thQm profitable and cover his
' debts.,• ;:,ter a,
-- And the debts have piled up - to
`' more than $1.5 billion, some esti- '
•'~~ate - as Gillett has paid top dot-
alai and' sold high-yield "junk
'bonds" bearing lofty interest rates
bj-13 percent to 17 percent. 'rhe
'-.cohpanr._and its venture partners
,,,,have rased $1.16 billion in the last
' wo years through the sale of junk
~yo~nds underwritten by Drexel
Burnham Lambert. °:
.,,f Last spring, in outbidding NBC
~iM Westinghouse Corp. for the
-Nampa station, Gillett offered 21
:~es that station's cash flow - or
~I'iet income plus depreciation -
avfiich was substantially above the
~, iil_to 12 times cash flow that buyers
:' ~ eel comfortable offering.
1Dperating profits „^;
:::Gillett Holdings :bad operating
.,profits of $90 million ~ revenue of
-x,$670 million last year, according to
~~ a company prospectus for ajunk-
wfiond offering. Revenue should
~e,Qge close to $1 billion this year
'with the-`addition''ot the Storer '
'~ stations, which were bought in a
~jolnt venture with the leveraged
a;jxryout specialists Kohlberg Kravis
='^George has put eII his chips on
;:.the red' and spun the roulette
~+?syheel," -.says Jefir~t Epstein, a
"~Filrst Boston Corp. investment
flanker who specializes in the com-
w~nunications industry. "He's a
smart gambler. Myself, I wouldn't
-~do what he's done,"-
-. A native of Raciae,.Wis., Gillett
=began his career aS 8 salesman for
_.~Yown Zellerbach Caap., then went
-,04 to work a5 a 111<cKinsey & Co.
~3nanagement consultant, put to-
y~ ether a computer software com-
~,,y, and managed "and owned a
art of the Miami Iblphins profes-
dnalfootball team:'
-In 1968, he acquireei the Harlem
lobetrotters, which became the
,care of his first diversified compa-
ny, which was called Globetrotter
:Communications.
_,,,,..The staff of Gift Holdings has
_J -... .-...... ~.
s gambles
Gillett
grown in recent years, but the key .
player is clearly still Gillett him-
self, who promotes his company
with the ardor of a former sales-.
man.
"You produce a quality product,
and you won't be able to get out of
the way of the money," Gillett
rumbles at his company headquar-
ters in Nashville. He is shorter
than most others in the room, but
his basso profundo out-males any
of them.
A sportsman
The chief executive is a gentle-
man sportsman, spending more
than one-third of his year on the ski
slopes, the golf course, hunting or
,fishing. On the slopes at Vail;
where he owns a home, Gillett in-
troduces himself to strangers with "
a business card that identifies him
as aquality-control inspector. "
Fellow station owners say they ,
are charmed by Gillett and ac-
knowledge his skill as a deal maker
.and broadcaster. But some of the
industry's movers have recently
been irked, too, because they feel
that he has pushed the Federal'
Communications Commission rules
Aso far that there may be a back- '
lash that will chill the permissive
climate that has benefited so
many. ,
In buying WTVT in Tampa, for
example, Gillett teamed up with a
.Washington communications law-
yer, Clarence McKee, who is
'black, in a $365 million deal stru~-
tured~to qualify for a tax break
that the FCC grants station buyers
who are members of minority
!groups. The so-called minority tax
certificate deferred the capital
..gains tax liability of the seller,;
Gaylord Broadcasting, and thus al-
lowed Gaylord to trim $100 million.
from its price -
Tampa deal
The use of minority tax certifi -
cates is not uncommon, and in re-
cent .years many minority and:
non-minority investors have'
teamed up to strike such deals. But
the WTVT deal was more conspic- '
uous, partly because it was the
largest minority tax certificate TV
deal ever and partly because
.McKee put up only a few thousand
dollars... , .
In return for his participation,
McKee got a 51 percent voting in-
terest -though only a 22 percent
equity interest.
A clause in the contract provides
.that, after two years, McKee can
bail out of the company for $1 mil- =
lion if he wants - or can be bought
out by Gillett for the same sum.
DicKee's. departure would under-
mine the purpose of the certificate
program, which was to encourage
George Gillett is an entrepreneur and communications giant whose
company's holdings include Vail and Beaver Creek ski resorts.
lasting minority ownership, says
Larry Irving, an aide to the house
Telecommunications and Finance
'Subcommittee. -
"You can see why sortae commit-
tee members were concerned," Ir-
ving said.
McKee says he has not decided
,whether he wID stay with the sta-
tion, but insists that he is an active
owner who has already helped im-
.prove the station's community im-
age. "George and I have gotten so
:many arrows in our back over this,
and it's much ado about nothing,"
McKee said.
FCC officials
While FCC officials insist that
the Tampa deal was proper, the
notoriety of the transaction seems
to be changing regulators' atti-
tudes. Already, FCC staff mem-
bers have discouraged several mi-
nority tax certificate proposals
that were floated by them for pre-
liminary review, according to an
investment banker with firsthand
knowledge of the proposals. -
"The legacy o[ that deal is that it
is going to be much tougher for
others," the banker said.
Gillett describes his job at the
company as "project broadcast-
ing" -the remaking o[ second- or
thud-ranking stations into the top
performers in their market. But an
analysis undertaken for the Los
Angeles Times by Broadcast In-
vestment Analysts, a northern Vir-
ginia research firm, found that the
company has a mixed record in im-
proving ratings.
Of the 10 stations that Gillett
,Holdings and Busse Broadcast
'Communications, the Gillett chil-
'dren's trust, have held for a year
or more, three moved up in the rat-
ings under the company's rr~anage-
ment, two declined and five stayed
!about the same. Some of G illett's
most important stations - iticlud-
'hig those in Nashville, Rochester,
N.Y., and Lincoln, Neb. -were
fast-ranked in their markets when
.the company bought them.
What Gillett has clearly im-
proved are the stations' profits. ills
'strategy is straightforward: He
,buys stations that have been run
witYlout close attention to adminis-
trative expenses and cuts those
costs, while also increasing spend-
ing on promotion, top syndicated
programming and news opera-
. lions, in hopes of raising ratings.
The Denver Post / Bri:ui Brainerd
~ov~rs ~ ~ Jow,u ~u,~c,,:.
.C~~. P.
~HEATRE VPELZATORB ZNC.
ADDRESS REPLY TO:
THEATRE OPERATORS, INC.
General Offices
P. O. Box 1629
Bozeman, Montana 59771
Phones: Film Dept. 587-1251
Accounting 586-1571
/2/,~ fr~~'l'
Tcawr°. c:yf ~4'a.i 1
7J J. F"rl..lrl~ct t~~? I"t ci
Vctl 1 , 1.O 81a~I
AT'TC~i'd: CNAf~:LIE Wl'Ck::
Uea.r- Ct7ar l i e:
A=. pt_r- ~ot..tr con~rersat i on 7 find tt-~e City Licence FE~e t cir our° Cr as=roads
Theatre to be comp 1 etel y unreasonab 1 e for a City I__i. r_rns~~_:. L:+~;~ I ~.;t•a
Ci t}~ 1 i cense fees are st_tppased to be somewhat reflective of the costs
involved in ~ city regt_ilc.ting the licensed business. F~tecent law st~.its
have ~i. ded wi tt-~ businesses when i t has been prover; that a ci t.y has t_tsed
thy? 1lt`en~ie f'Fe`_:: as a ta.i: Gr as afi 1nCCme generatlnta frier.'+.sl.Sr-EE tl'"~~.t e'.•:Cr~eCis
the cost of r- ec:~ul at i on .
As you e;:plained this fee is gaing to be trued to marl•;et anci ~.dver-tise
the Vail ar-cr~. We have na pr-oblerr~ in cantib~_tting tc~ st~.ch a cr;~.tse
howe~:~er i t sl-~~~,~_.tl d not be handled ~s a r~ancaa.ntar y ci. t~y l i ce~n=_.e fee.
ThF~at.res, ut_tt of neccessity, require large square footage however- the
incomF~, per sgt_tare foot i= much lower than other- businesses. We
recently toak: the Crossroads theatre tiacE; over when the previaus owner
sustained si clni f i cant 1 asses i n the busi mess and defaulted on tii_. 1 ease.
Z noted on yot.tr- farm that there are maximum fePS for bt.tsine.s~~s str_~h
as attil et. i. c c_ 1 ubs . I would ask: that You. r-~e~,~i. ew the _,t:~tLt s caf 'T t~eatr-es
i n your 1 i. cense fee structure» The ~~4U~ rni ni iTCLtf-ii fee i s !Wore thz~n dot_tti 1 e
the City License Fee we pay i n any of tt-~e other 1 l cities i n -~hi ch we
aperate theatres.
I am c7i. vi riy a copy of t.hi = 1 ettFr- and yo~.tr l i cen ~e fee form to our-
attourney. Whether ar not tae pay tl-~e fee will depend on his
api ni on on the 1 egal i ty of the assessment and an yot_tr r-evi. ew of the
amot_tnt that wi 11 be charged.
fEaga ~;~~
!~ ~-~ G~~
Dan k.:l u~mann
Vice !"'resident
er_: David Penwell, Attat_trney