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HomeMy WebLinkAbout2003-07-01 Support Documentation Town Council Evening Session~// ~` 1. ~ AGENDA EVENING MEETING 6 P.M. TUESDAY, JULY 1, 2003 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1. ITEMITOPIC: Citizen Participation (5 min.) 2. ITEM/TOPIC: Consent Agenda re: June 3 and June 17 Evening Meeting Agendas (5 min.) 3. Mike McGinness ITEM/TOPtC: Tax Exempt Financing Reclamation Act (TEFRA) Hearing Matt Mire to meet the technical requirements of the Internal Revenue Service Code Nina Timm (15 min.) ACTION REQUESTED OF COUNCIL: Conduct the public hearing to satisfy the Internal Revenue Service code. BACKGROUND RATIONALE: The TEFRA Hearing is an Internal Revenue Service code requirement in order to obtain tax-exempt status for the Private Activity Bonds being issued for Middle Creek Village. The Town of Vail, as conduit issuer, must conduct this public hearing in order to satisfy the Internal Revenue Service requirements. RECOMMENDATION: Conduct the public TEFRA Hearing in order to obtain tax-exempt status for the Private Activity Bonds for Middle Creek ViAage. 4. Judy Camp ITEMITOPIC: November Election Discussion (30 min.) Pam Brandmeyer ACTION REQUSTED OF COUNCIL: Provide staff direction on ballot preparation and/or additional fact-finding. BACKGROUND RATIONALE: The Town Council has been evaluating a list of possible ballot options for the upcoming November election. During the June work sessions, those options were narrowed to a ballot measure that would seek support for a modest property tax increase to be used to build and equip a new fire station in West Vail and renovate the existing fire station at Main Vail. The election timetable requires first reading of a ballot ordinance at the August 5 evening meeting. STAFF RECOMMENDATION: Staff recommends preparation of a ballot measure that covers the cost of constructing, equipping and staffing a third fire station as well as renovation of the Main Vail fire station. 5. Allison Ochs ITEMITOPIC: Appeal of the May 21 Design Review Board decision to deny the proposed awnings at the Ore House, located at 232 Bridge Street / Lots C and D, Block 5, Vail Village Filing 1. (15 min.) ACTION REQUESTED OF COUNCIL: Uphold, uphold with conditions, or overturn the Design Review Board's decision to deny the proposed awnings at the Ore House. BACKGROUND RATIONALE: The applicant, Larry Anderson, submitted an application to erect clear plastic awnings which roll up into the existing deck awning at the Ore House Bar and Restaurant. The application was in response to an enforcement letter sent by the Community Development Department for erecting the clear plastic awnings without design approval. On May 21, the Design Review Board denied the proposed awnings at the Ore House. The denial was due to a 2:2~ tie of the DRB, which according to procedure, constitutes a denial of a proposal. The applicant, Larry Anderson, representing the Ore House, submitted an appeal of the Design Review Board's May 21 decision. Please refer to the staff memorandum for additional information. STAFF RECOMMENDATION: The Community Development Department recommends the Vail Town Council upholds the May 21 Design Review Board decision to deny the proposed awnings at the Ore House, located at 232 Bridge Street /Lots C and D, Block 5, Vail Village Filing 1. 6. Allison Ochs ITEM/TOPIC: Appeal of the June 9 Planning and Environmental Commission decision to approve with conditions a request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at 9 Vail Road /Lot C, Vail Village 2"d Filing. (30 min.) ACTION REQUESTED OF COUNCIL: Uphold, uphold with conditions, or overturn the Planning and Environmenta! Commission's decision to approve with conditions the proposed variance. BACKGROUND RATIONALE: On June 9 the Planning and Environmental Commission voted to approve a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at Nine Vail Road condominiums. The applicants, Nine Vail Road Condominium Association and Nicolet Island Development, Inc., requested a variance from Section 12-7A-11, which states, in part, "no at grade or above grade surface parking or loading area shall be located in any required front setback area." The applicants are proposing four surface parking spaces in the front setback adjacent to West Meadow Drive. The PEC voted 4-2 to approve (Schofield and Bernhardt opposed) the variance request with the condition that only two parking spaces and the minimum area w required for aturn-around be located in the front setback,. while the remaining two. spaces be located within the parking structure of the proposed Four Seasons Resort. Nine Vail Road Condominium Association has filed an appeal of the PEC's June 9 decision. Please refer to the staff memorandum for additional information. STAFF RECOMMENDATION: The Community Development Department recommends the Vaii Town Council uphold the June 9 Planning and Environmental Commission decision to approve with conditions the request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at 9 Vail Road /Lot C, Vail Village 2id Filing. 7. Sybill Navas ITEM/TOPIC: 2004 Allocation Request for Commission on Special Events (5 min.) 8. Rick Chastain ITEM/TOPIC: 2004 Allocation Request for Pro Cycling Tour (5 min.) 9. Bill Gibson ITEM/TOPIC: First reading of Ordinance No. 6, Series of 2003, an ordinance amending Sections 12-6B-2, 12-6B-3, 12-6C-2, 12-6C-3, 12- 6D-2, 12-6D-3, 12-13-4, Vail Town Code, to allow a Type II employee housing unit as a permitted use and to eliminate a Type II employee housing unit as a conditional use in the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts, and setting forth details in regard thereto. (15 min.) ACTION REQUESTED OF COUNCIL: Listen to a staff presentation on the .proposed text amendment ordinance and approve, approve with modifications, or deny Ordinance No. 6, Series of 2003, on first reading. BACKGROUND RATIONALE: The primary purpose for these proposed text amendments is to expedite the development review process for Type II EHU applications in an effort to make more efficient use of the Planning and Environmental Commission, Town Staff and applicants' time and resources. On March 24 the PEC held a public hearing to discuss the proposed text amendments. Following discussion of the amendment, the PEC voted 6-0 to forward a recommendation of approval of the proposed text amendment to the Vail Town Council. 10. Bill Gibson ITEMITOPIC: First Reading of Ordinance No. 16, Series of 2003, an ordinance amending Section 12-13-4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code, to amend the Type II EHU requirements, to allow the separate sale or transfer of Type II EHUs, and setting forth details in regard thereto. (30 min.) ACTION REQUESTED OF COUNCIL: Listen to a staff presentation on the proposed text amendment ordinance V and approve, approve with modifications, or deny Ordinance No. 16, Series of 2003, on first reading. BACKGROUND RATIONALE: On June 9 the Planning and Environmental Commission held a public hearing to discuss the proposed text amendments. Following discussion of the amendment, the PEC voted 6-1 (Kjesbo opposed) to forward a recommendation of approval of the proposed text amendment to the Vail Town Council. 11. Matt Mire ITEM/TOPIC: Reading of Ordinance No. 14, Series of 2003, an Nina Timm emergency ordinance authorizing the creation of Timber Ridge Affordable Housing Corporation and the making of a loan to Timber Ridge Affordable Housing Corporation in connection with the Corporation's acquisition of Timber Ridge apartments and authorizing the execution and delivery of a project agreement concerning such project; ratifying action previously taken and appertaining thereto; repealing all ordinances in conflict herewith. (30 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 14, Series of 2003. BACKGROUND RATIONALE: The Vail Town Council has determined to form the Timber Ridge Affordable Housing Corporation under provisions of the Colorado Nonprofit Corporation Act, Articles 121 through 137 of Title 7, Colorado Revised Statutes, as amended, for the purpose of acquiring, operating, maintaining and developing the Timber Ridge multifamily rental housing project. STAFF RECOMMENDATION: Staff recommends the Town Council approve Ordinance No. 14, Series of 2003. 12. Mike McGinnis ITEM/TOPIC: Second Reading of Ordinance No. 15, Series of 2003, Matt Mire Private Activity Bonds for Middle Creek (15 min.) ACTION REQUESTED OF COUNCIL: Approve. BACKGROUND RATIONALE: This Ordinance authorizes issuance of Bonds by the Town for Middle Creek Village Apartments project. The Bonds are not a debt or obligation of the Town within the meaning of Tabor or any other state or local law, but are issued under the state statute known as the County and Municipality Revenue Bond Act, which specifrcally limits the obligations of the Town. Bond proceeds will be loaned to Middle Creek Village, LLC., who is solely responsible to pay for debt service on the Bonds as well as issuance costs. Issuance of this type of bonds is a common form of financing for low-cost financing of affordable multifamily housing. STAFF RECOMMENDATION: Approve 13. Town Manager's Report (5 min.) 14. Adjournment (9:25 P.M.) NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT 2 P.M. ON TUESDAY, JULY 15, 2003 IN THE TOV COUNCIL CHAMBERS. THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BEGIN AT 6 P.M. ON TUESDAY, JULY 15, 2003 IN TOV COUNCIL CHAMBERS Sign language interpretation available upon request with 24-hour notification. Please call 479- 2332 voice or 479-2356 TDD for information. -t AGENDA EVENING MEETING 6 P.M. TUESDAY, JULY 1, 2003 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1 • ITEM/TOPIC: Citizen Participation (5 min.) 2• ITEM/TOPIC: Consent Agenda re: June 3 and June 17 Evening Meeting Agendas (5 min.) 3. Mike McGinness ITEMlTOPIC: Tax Exempt Financing Reclamation Act (TEFRA) Hearing Matt Mire to meet the technical requirements of the Internal Revenue Service Code Nina Timm (15 min.) ACTION REQUESTED OF COUNCIL: Conduct the public hearing to satisfy the Internal Revenue Service code. BACKGROUND RATIONALE: The TEFRA Hearing is an Internal Revenue Service code requirement in order to obtain tax-exempt status for the Private Activity Bonds being issued for Middle Creek Village. The Town of Vail, as conduit issuer, must conduct this public hearing in order to satisfy the Internal Revenue Service requirements. RECOMMENDATION: Conduct the public TEFRA Hearing in order to obtain tax-exempt status for the Private Activity Bonds for Middle Creek Village. 4. Judy Camp ITEM/TOPIC: November Election Discussion (30 min.) Pam Brandmeyer ACTION REQUSTED OF COUNCIL: Provide staff direction on ballot preparation and/or additional fact-finding. BACKGROUND RATIONALE: The Town Council has been evaluating a list of possible ballot options for the upcoming November election. During the June work sessions, those options were narrowed to a ballot measure that would seek support for a modest property tax increase to be used to build and equip a new fire station in West Vail and renovate the existing fire station at Main Vail. The election timetable requires first reading of a ballot ordinance at the August 5 evening meeting. STAFF RECOMMENDATION: .Staff recommends preparation of a ballot measure that covers the cost of constructing, equipping and staffing a third fire station as well as renovation of the Main Vail fire station. f 5. Allison Ochs ~TEM/TOPIC: Appeal of the May 21 Design Review Board decision to deny the proposed awnings at the Ore House, located at 232 Bridge Street / Lots C and D, Block 5, Vail Village Filing 1. (15 min.) ACTION REQUESTED OF COUNCIL: Uphold, uphold with conditions, or overturn the Design Review Board's decision to deny the proposed awnings at the Ore House. BACKGROUND RATIONALE: The applicant, Larry Anderson, submitted an application to erect clear plastic awnings which roll up into the existing deck awning at the Ore House Bar and Restaurant. The application was in response to an enforcement letter sent by the Community Development Department for erecting the clear plastic awnings without design approval. On May 21, the Design Review Board denied the proposed awnings at the Ore House. The denial was due to a 2:2 tie of the DRB, which according to procedure, constitutes a denial of a proposal. The applicant, Larry Anderson, representing the Ore House, submitted an appeal of the Design Review Board's May 21 decision. Please refer to the staff memorandum for additional information. STAFF RECOMMENDATION: The Community Development Department .recommends the Vail Town Council upholds the May 21 Design Review Board. decision to deny the proposed awnings at the Ore House, located at 232 Bridge Street /Lots C and D, Block 5, Vail Village Filing 1. 6. Allison Ochs ITEMlTOPIC: Appeal of the June 9 Planning and Environmental Commission decision to approve with conditions a request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow. for parking and loading in the front setback, located at 9 Vail Road /Lot C, Vail Village 2"d Filing. (30 min.) ACTION REQUESTED OF COUNCIL: Uphold, uphold with conditions, or overturn the Planning and Environmental Commission's decision to approve with conditions the proposed variance. BACKGROUND RATIONALE: On June 9 the Planning and Environmental Commission voted to approve a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at Nine Vail Road condominiums. The applicants, Nine Vail Road Condominium Association and Nicolet Island Development, Inc., requested a variance from Section 12-7A-11, which states, in part, "no at grade or above grade surface parking or loading area shall be located in any required front setback area." The applicants are proposing four surface parking spaces in the front setback adjacent to West Meadow Drive. The PEC voted 4-2 to approve (Schofield and Bernhardt opposed) the variance request with the condition that only two parking spaces and the minimum area required for aturn-around be located in the- front setback, while the remaining two spaces be located within the parking structure of the proposed Four Seasons Resort. Nine Vail Road Condominium Association has filed an appeal of the PEC's June 9 decision. Please refer to the staff memorandum for additional information. STAFF RECOMMENDATION: The Community Development Department recommends the Vail Town Council uphold the June 9 Planning and Environmental Commission decision to approve with conditions the request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at 9 Vail Road /Lot C, Vail Village 2"~ Filing. 7. Sybill Navas ITEM/TOPIC: 2004 Allocation Request for Commission on Special Events (5 min.) 8. Rick Chastain ITEM/TOPIC: 2004 Allocation Request for Pro Cycling Tour (5 min.) 9. Bill Gibson ITEM/TOPIC: First reading of Ordinance No. 6, Series of 2003, an ordinance amending Sections 12-66-2, 12-6B-3, 12-6C-2, 12-6C-3, 12- 6D-2, 12-6D-3, 12-13-4, Vail Town Code, to allow a Type II employee housing unit as a permitted use and to eliminate a Type II employee housing unit as a conditional use in the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts, and setting forth details in regard thereto. (15 min.) ACTION REQUESTED OF COUNCIL: Listen to a staff presentation on the proposed text amendment ordinance and approve, approve with modifications, or deny Ordinance No. 6, Series of 2003, on first reading. BACKGROUND RATIONALE: The primary purpose for these proposed text amendments is to expedite the development review process for Type II EHU applications in an effort to make more efficient use of the Planning and Environmental Commission, Town Staff and applicants' time and resources. On March 24 the PEC held a public hearing to discuss the proposed text amendments. Following discussion of the amendment, the PEC voted 6-0 to forward a recommendation of approval of the proposed text amendment to the Vail Town Council. 10. Bill Gibson ITEM/TOPIC: First Reading of Ordinance No. 16, Series of 2003, an ordinance amending Section 12-13-4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code, to amend the Type II EHU requirements, to allow the separate sale or transfer of Type II EHUs, and setting forth details in regard thereto. (30 min.) ACTION REQUESTED OF COUNCIL: Listen to a staff presentation on the proposed text amendment ordinance and approve, approve with modifications, or deny Ordinance No. 16, Series of 2003, on first reading. BACKGROUND RATIONALE: On June 9 the Planning and Environmental Commission held a public hearing to discuss the proposed text amendments. Following discussion of the amendment, the PEC voted 6-1 (Kjesbo opposed) to forward a recommendation of approval of the proposed text amendment to the Vail Town Council. 11. Matt Mire ITEMlTOPIC: Reading of Ordinance No. 14, Series of 2003, an Nina Timm emergency ordinance authorizing the creation of Timber Ridge Affordable Housing Corporation and the making of a loan to Timber Ridge Affordable Housing Corporation in connection with the Corporation's acquisition of Timber Ridge apartments and authorizing the execution and delivery of a project agreement concerning such project; ratifying action previously taken and appertaining thereto; repealing all ordinances in conflict herewith. (30 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 14, Series of 2003. BACKGROUND RATIONALE: The Vail Town Council has determined to form the Timber Ridge Affordable Housing Corporation under provisions of the Colorado Nonprofit Corporation Act, Articles 121 through 137 of Title 7, Colorado Revised Statutes, as amended, for the purpose of acquiring, operating, maintaining and developing the Timber Ridge multifamily rental housing project. STAFF RECOMMENDATION: Staff recommends the Town Council approve Ordinance No. 14, Series of 2003. 12. Mike McGinnis ITEMROPIC: Second Reading of Ordinance No. 15, Series of 2003, Matt Mire Private Activity Bonds for Middle Creek (15 min.) ACTION REQUESTED OF COUNCIL: Approve. BACKGROUND RATIONALE: This Ordinance authorizes issuance of Bonds by the Town for Middle Creek Village Apartments project. The Bonds are not a debt or obligation of the Town within the meaning of Tabor or any other state or local law, but are issued under the state statute known as the County and Municipality Revenue Bond Act, which specifically limits the obligations of .the Town. Bond proceeds will be loaned to Middle Creek Village, LLC., who is solely responsible to pay for debt service on the Bonds as well as issuance costs. Issuance of this type of bonds is a common form of financing for low-cost financing of affordable multifamily housing. .+ STAFF RECOMMENDATION: Approve 13. Town Manager's Report (5 min.) 14. Adjournment (9:25 P.M.) NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT 2 P.M. ON TUESDAY, JULY 15, 2003 IN THE TOV COUNCIL CHAMBERS. THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BEGIN AT 6 P.M. ON TUESDAY, JULY 15, 2003 IN TOV COUNCIL CHAMBERS Sign language interpretation available upon request with 24-hour notification. Please calf 479- 2332 voice or 479-2356 TDD for information. QRLl,FT VAIL TOWN COUNCIL EVENING MEETING TUESDAY, JUNE 3, 2003 TOV COUNCIL CHAMBERS 6:00 P.M. The regular meeting of the Vail Town Council was called to order by Mayor Ludwig Kurz. Members present: Ludwig Kurz, Mayor Dick Cleveland Diana Donovan Bill Jewitt Greg Moffet Chuck Ogilby Absent: Rod Slifer, Mayor Pro-tem Staff Members Present: Pam Brandmeyer, Interim Town Manager Matt Mire, Town Attorney The first item on the agenda was Citizen Participation. Former Mayor Bob Armour humorously commended Councilman Greg Moffet for shutting down I-70 to address the town's noise issues. Moffet, who is known for his passionate views about the impact of highway noise on Vail's quality of life, replied by noting the closure had produced a most pleasant "open window" night. On a serious note, Mayor Ludwig Kurz took the opportunity to thank the numerous agencies and community volunteers who responded to Sunday's flash flood in East Vail. Kurz said the coordinated effort involving the Town of Vail, Colorado Department of Transportation, Town of Avon, Eagle County and others, did an amazing job in bringing the situation under control. In particular, Kurz thanked Interim Town Manager Pam Brandmeyer for her on-scene coordination. Brandmeyer, in turn, credited John Gulick and Mike McGee from the Vail Fire Department, plus Steve Wright and Joe Russell from the Vail Police Department, as well as Greg Hall and Larry Pardee from the Public Works Department, plus Jamie Wilson and Suzanne Silverthorn in the Community Information Office for their tireless efforts. Brandmeyer said the community is fortunate to have employees of such high caliber and experience. Their presence, she said, averted a serious tragedy. The second item on the agenda was the approval of the April 1, April 15, May 6 and May 20 Meeting Minutes. Greg Moffet made a motion to approve the minutes as amended by Diana Donovan. Dick Cleveland seconded the motion. A vote was taken and the motion passed unanimously, 6-0. The third item on the agenda was a presentation of Fire Study Analysis. After reviewing recommendations from an independent fire study analysis, Greg Moffet motioned and Dick Cleveland seconded the following motion: 1. to authorize the design of a fire station on the Hud Wirth site and to begin the process of creating a third fire company to staff the station in such a way as to accommodate combined emergency services functions and to direct staff to pursue merger discussions with the Eagle River Fire Protection District and the Eagle County Ambulance District. A vote was taken and the motion passed unanimously, 6-0. A second motion was made by Greg Moffet and seconded by Diana Donovan: 2. To direct staff to provide the Town Council with an analysis of quick response vehicles with an eye toward inclusion in the 2004 budget and to direct staff to amend the false alarm ordinance, if an amendment is necessary to give the ordinance teeth, and/or to start enforcing it. Prior to the vote, Jim Sparr of Almont Associates, a fire services consultant, presented five recommendations to the Town Council following an evaluation of the town's previous fire studies as well as his own analysis. A vote was taken and the motion passed unanimously, 6-0. The recommendations are: 1. First and foremost the Town of Vail in cooperation with the Eagle River Fire Protection District and the Eagle County Ambulance District should study the possibility of fully integrated fire and EMS services to maximize the utilization of resources and provide continuity of patient care. 2. The Town of Vail should utilize the QRV's (quick response vehicles) more in their response to medical emergencies and accidents on I-70, particularly on Vail Pass. 3. The Town of Vail should mandate the use of detection and suppression systems in all new construction as well as increased code enforcement in all target hazard occupancies. 4. The Town of Vail should review and enforce a false alarm ordinance to discourage the excessive false alarms that are wasting valuable resource time of emergency responses. 5. The Town of Vail should immediately initiate the option of building the third station along with the reconstruction of the current Main Vail station as a first choice or at the beast should relocate both the Main Vail facility and the East Vail facility as described on the previous pages During a discussion of the recommendations, Sparr said a third fire station in Vail would improve fire response times to the entire community, due to the lineal nature of the town. He also said the town was experiencing too many false alarms (38 percent of the calls last year were false alarms). Sparr suggested 2 using sanctions to enforce Vail's false alarm ordinance to help reduce the number of calls. In recommending use of quick response vehicles, Sparr said the apparatus (a pickup with a tank and pumper) could be purchased for $55,000 and could be used for highway accidents and medical calls, which would reduce wear and tear down on the more expensive fire trucks. Additionally, while Sparr said a consolidation with the Eagle River Fire Protection District could generate some personnel savings, far more savings could be realized through a consolidation with the Ambulance District. In voting to move forward with the design of a West Vail fire station, Councilmember Diana Donovan said it was important for the public to know that the new station needs to be built before the Eagle River Fire Protection District will consider a consolidation. Other Councilmembers noted the need to design the new station in a way that would accommodate future consolidated services. During the public comment period, former Councilmember Michael Cacioppo urged the Council to fund the new station with existing revenues to fulfill a promise the then-Town Council made to the community in 1985. Noting preliminary interest by the current Town Council to ask voters in November to consider a mill levy increase to construct the station, Cacioppo said he would work to defeat the issue. He said funding for police, fire and roads should receive priority status from the town's budget, while other non-essential projects should be the ones that receive voter authorization. Also speaking was former Councilman Tom Steinberg who expressed support for the proposed new fire station, with one exception. Noting the importance in keeping the Ambulance District stationed at the hospital for valuable training, Steinberg said a mandatory consolidation would not be in the public's best interest. In addition, Lyn Morgan, general manager of the Eagle County Ambulance District, addressed the Council and asked that his organization be included in future discussions. The fourth item on the agenda was the Conference Center Next Steps. Greg Moffet moved and Dick Cleveland seconded the motion to appoint the following members of the Conference Center Oversight Committee: Lodging: Stan code and Dave Pease; Retail/Business: Frank Johnson and Merv Lapin; At Large: Scott Proper and Rick Scalpello; VRI: Bill Jensen; and Council representatives: Rod Slifer and Bill Jewitt. A vote was taken on the motion and the motion passed unanimously, 6-0. Bill Jewitt made a motion and Dick Cleveland seconded the motion to direct staff to move forward with a request for proposals (RFP) for a business plan. A vote was taken on the motion and the motion passed unanimously, 6-0. Community Development Director Russell Forrest explained to Council the four basic phases of the conference center. According to Forrest, phase I includes verifying the market analysis done ~to date; further refining and analyzing other conference facilities similar to Vail's proposed facility; creating a business plan that defines operational costs, revenues and potential deficits; appointing conference center oversight committee members; and hiring a project manager. Phase II will include a request for proposals to design the facility. Phase III includes construction of the conference center facility 3 and phase IV will be operation of the facility. Forrest also encouraged Council to direct staff to send a request for qualifications (RFQ) for a project manager and explained the project manager will be an extension of staff and job duties will include dealing with meetings and working with Council, town staff, oversight committee members and the community. The project manager would be a contract position chosen by the town manager with input from Council and the oversight committee. The ideal candidate would have significant experience with construction of projects similar to the conference center. Councilman Bill Jewitt expressed concerns with hiring a project manager before a business plan is completed. Forrest described the advantages of having a project manager on board to be involved with the process from the beginning to end for such a complex project as building the conference center. Greg Moffet moved to appoint a project manager. Chuck Ogilby seconded the motion. A vote was taken and the motion was defeated 3-3, Diana Donovan, Bill Jewitt and Dick Cleveland voting against the motion. Councilmembers directed staff to wait to send out RFQs for a project manager and concentrate on moving forward with issuing RFPs for a business plan. Councilmember Diana Donovan also recommended 21 additions to the RFP as follows: 1. Independently reviewing the availability of lodging units in the To wn of Vail to ensure room availability. 2. Evaluating the economic performance of other similar mountain resort conference facilities and their operational structure. 3. Surveying conference planners to determine the market demand (locally, regionally and nationally) and programmatic requirements of the conference planners. The consultant shall also note any trends with conference center planning that should be considered for this facility. 4. Determining the seasonal demand for the facility and the programmatic requirements for the facility. This analysis should also determine whether Vail has an adequate bed base and access to transportation to meet this demand. 5. An analysis of economic/fiscal impact (room nights, lodging sales, retail sales, food and beverage sales). An analysis of the impact of a public conference center on existing and planned private conference facilities and on restaurants. 6. A recommendation as to whether the conference center should be restricted to conferences greater than a specified size. 7. An analysis of Vail's advantages and disadvantages in competing for larger conferences. 8. An identification of conference centers that have ceased operations. An analysis of the specific reasons these conference centers failed and how they can be avoided. An identification of conference centers that break even or better on an operational basis and how their practices can be copied. 9. An analysis of the growth of larger conferences and an estimate of the number of new conference centers that are added annually. 10. An analysis of the number of additional room nights that an increase in tourism marketing of $4 million a year would generate. 4 11. Proposed physical program that includes a verification that the spatial requirements fit on the site. 12. Refined capital budget for construction of the conference center. This capital plan shall also include the cost for creating an additional plate of parking on the Lionshead Parking structure and providing access for the Vail International. 13. Specific personnel requirements for the facility, including security. 14. Detailed 20-year operations budget for the facility. This shall include specific estimates on revenue, costs, working capital and any subsidy that would be required. 15. A detailed capital replacement budget, including facility upgrades. 16. Proposed strategy for addressing operational deficits and tax revenue collections. 17. Requirements for hotel booking policies/agreements that are needed. 18. Proposed marketing plan and costs. 19. An analysis of the incremental costs to the town to support the conference center including bus transportation, security a.nd in-kind services. 20. An analysis of the financial impacts to the town if the conference center fails to attract sufficient demand and must be abandoned. 21. An analysis of bond payments and revenue sources for the life of the bonds. A recommendation as to the terms and maturities of the bonds. Councilmember Diana Donovan also expressed the need to research incorporation of a second sheet of ice on the conference center, if funds would be available. During the public comment period, Scott Proper, Vice President of WestStar Bank addressed Council and encouraged them to acknowledge the need to look at top-notch consultants when creating the business plan as the conference center should be a world-class facility. The following members were selected by Council to serve on the Conference Center Oversight Committee: David Pease and Stan Cope, representing the lodging community; Merv Lapin and Frank Johnson, representing the retail/business community; Scott Proper and Rick Scalpello, representing the community at-large; Bill Jensen, representing Vail Resorts; and Rod Slifer and Bill Jewitt as Council representatives. Mayor Ludwig Kurz thanked all the applicants for their interest in the project. Town attorney Matt Mire then reminded Council the oversight committee meetings will require 24-hour public notice. Next steps include directing staff to move forward with an RFP for a market analysis and creation of a business plan. The fifth item on the agenda was the Children's Garden of Learning discussion. The Council requested more details from the Children's Garden of Learning before assisting the day care center with funds for its move to Red Sandstone Elementary School in July. School representative Angela Muller presented a request to the Town Council in which funds are sought to assist with costs associated with moving the facility temporarily to Red Sandstone Elementary School, as well as permission to build a play area on town-owned land, plus s formalization of a lease for the building proposed to be located at the Middle Creek development. The day care center leaves its current location on June 28 in preparation for building of the Middle Creek development project. Councilmember Diana Donovan noted the Council's commitment to assist the day care center. However, she said the Council needs specific cost information before a final decision can be made. Donovan and Councilman Greg Moffet volunteered to work with a committee that will include day care representatives, parents and town staff who will meet and discuss costs and terms of a lease prior to the next Council meeting on June 17. The sixth item on the agenda was a discussion regarding VCBA and WCTB Funding. Chuck Ogilby made a motion to approve $200,000 in 2004 funding for the Vail Chamber and Business Association (VCBA) and $25,000 for the Vail Valley Chamber and Tourism Bureau (VVCTB). Bill Jewitt seconded the motion. Ogilby amended his motion to allow the VCBA to begin seeking membership dues. A vote was taken on the amended motion and the motion passed unanimously, 6-0. The $225,000 was a recommended budget cut to Council by former Town Manager Bob McLaurin earlier this year. Councilmembers Bill Jewitt and Chuck Ogilby expressed the need to keep funding for both organizations and said the funding should also be used to research creation of a Business Improvement District (BID). While Councilmembers Diana Donovan and Greg Moffet agreed with the funding request, both members said the groups must develop additional accountability to ensure the dollars are being spent effectively. Approximately 10 audience. members spoke to Council during the meeting and all encouraged continued funding of one or both organizations. Sybill Navas, representing the VCBA and Commission on Special Events, asked Council to look at reshaping the business license fee and research the BID more thoroughly before cutting funding for the VCBA. Michael Cacioppo spoke to Council and encouraged members to study the Edwards business model before cutting funding of the organizations or creating a BID. Cacioppo also expressed a need for Council to bring back the fun to Vail by inviting locals back to town to help revitalize Vail's economy. Steve Pope with the Vail Daily addressed Council and encouraged Council to fund both organizations, saying the programs the organizations run are bringing businesses together and helping businesses work for long-term solutions to Vail's economic vitality. Dale Bugby spoke to Council and requested Council approve funding for the VCBA, but to took at lodging data from the VVCTB before approving the requested $25,000. Rick Scalpello also addressed Council and suggested the Council give the VCBA $150,000 funding to initiate the BID process. Bob Fritz, Joe Staufer and George Knox encouraged Council to continue funding the organizations and said they act in the best interest of the community and provide leadership for the business community. Bill Jensen with Vail Resorts spoke to Council and expressed the need to continue funding the organizations and said both the VCBA and WCTB are crucial in helping to move Vail's economic vitality forward and will help "keep the ship from sinking." Jim Lamont, representing the Vail Village Homeowners Association, 6 spoke to Council and said the VVHA supports funding for the VCBA because the organization is building confidence and providing leadership to the business community. Councilmembers Greg Moffet, Ludwig Kurz and Diana Donovan all said they were conflicted on the decision to fund the organizations, but agreed with audience members who spoke that now is not the time to cut funding. Councilmembers thanked the audience members for addressing them with the constructive feedback and for taking the time to express their support for the two organizations. The seventh item on the agenda was the first reading of Ordinance No. 14, Series of 2003, regarding the Timber Ridge Housing Corporation. Greg Moffet moved to table first reading of an ordinance that would create the Timber Ridge Housing Corporation until June 17. Bill Jewitt seconded the motion. A vote was taken and the motion passed unanimously, 6-0. The eighth item on the agenda was the second reading of Ordinance No. 5, Series of 2003 a Housekeeping Ordinance which removes codification of application submittal requirements in the town code. Instead, the requirements will be referenced as an administrative function within the Community Development Department. Bill Jewitt moved to approve Ordinance #5 on second reading. Greg Moffet seconded the motion. A vote was taken and the motion passed 4-2, Dick Cleveland and Diana Donovan opposing. In voting against the ordinance, Councilmember Diana Donovan said she had lost confidence in the changes and preferred to keep the provisions in the code to provide consistency. The ninth item on the agenda was the second reading of Ordinance #12, Series of 2003, and ordinance establishing Special Development District No. 37, Tivoli Lodge. Greg Moffet moved to approve Ordinance #12 on second reading. Bill Jewitt seconded the motion. A vote was taken and the motion passed unanimously, 6-0. The applicants, Bob and Diane Lazier, intend to demolish the existing lodge and construct a new 62-room family owned hotel on the site. The tenth item on the agenda was the second reading of Ordinance #13, Series of 2003, an ordinance relating to the redevelopment of Sonnenalp Hotel and Swiss Chalet, an ordinance amending the conditional use section of the Public Accommodation Zone District to add "lodges, including accessory eating, drinking or retail establishments located with the principal use and occupying between 10 and 15 percent of the total gross residential floor area of the main structure or structures on the site." The text amendment was requested by the owner of the Sonnenalp Hotel and Swiss Chalet to facilitate a proposed redevelopment. Greg Moffet moved to approve Ordinance #13 on second reading. Bill Jewitt seconded the motion. A vote was taken and the motion passed unanimously, 6-0. The eleventh item on the agenda was the Town Manager's Report. During a review of the town manager's report, the Bill Jewitt moved to approve $26,100 for upgrades and cleaning of the town manager's residence on Arosa Drive. Greg Moffet seconded the motion. A vote was taken and the motion passed unanimously, 6-0. As there was no further business, Greg Moffet moved to adjourn the meeting. Bill Jewitt seconded the motion. A vote was taken and the motion passed unanimously, 6-0, and the meeting was adjourned at 10:25 p.m. Respectfully submitted, Ludwig Kurz, Mayor ATTEST: Lorelei Donaldson, Town Clerk Minutes taken by Pam Brandmeyer and Suzanne Silverthorn DRAFT VAIL TOWN COUNCIL Evening Session Minutes Tuesday, June 17, 2003 6:00 P.M. The regular meeting of the Vail Town Council was called to order by Mayor Ludwig Kurz at 6:00 P.M. on Tuesday, June 17, 2003. MEMBERS PRESENT STAFF MEMBERS PRESENT: Ludwig Kurz, Mayor Rod Slifer, Mayor Pro-Tem Dick Cleveland Bill Jewitt Diana Donovan Chuck Ogilby Greg Moffet Pam Brandmeyer, Interim Town Manager Matt Mire, Town Attorney Councilman Dick Cleveland announced efforts to organize an economic roundtable, scheduled for 6 to 8 p.m. June 26 in the Vail Town Council Chambers. An error in the Vail Daily had listed the meeting date incorrectly. The first item on the agenda was Citizen Participation. Using an array of year to year comparisons which showed an overall increase of $283,000 in additional tax revenues contributed to the town by the Antlers at Vail, general manager Rob Levine urged the Council to do more to encourage redevelopment in Lionshead because of the economic impact. The 92-unit property was the first to redevelop following town approval of the Lionshead Master Plan. Levine said that while the plan outlines a great vision, the requirements of private properties, such as increased employee housing units, offsite property improvements and heated sidewalks are deterrents for redevelopment. Instead, Levine called for what he described as a paradigm shift in the town's approach, suggesting the town become more of a partner with the business community. For example, Levine said the town should consider donating a small portion of town-owned land to help facilitate redevelopment of the Vail 21 property, saying it would be in the community's best interest to do so. Levine also noted the challenges ahead with the various properties in Lionshead, noting that 20 of the 25 properties are condominium associations where redevelopment decisions are complex due to multiple ownership. Councilman Chuck Ogilby thanked Levine and the Antlers property owners for their perseverance in being the first in Lionshead to redevelop. The second item on the agenda was the Four Seasons Resort Special Development District At the applicant's request, Greg Moffet motion to table second reading of an ordinance to allow for the redevelopment of the Chateau at Vail and the Vail Amoco site. Dick Cleveland seconded the motion. A vote was taken and the motion passed unanimously, 7-0, and the ordinance was tabled to July 15 to allow time to resolve the relocation of four required parking spaces for 9 Vail Road, which was a condition of approval on first reading. The applicant, Nicolet Island Development, Inc., proposes to build a Four Seasons Resort to include 118 accommodation units, 22 condominiums, 34 employee housing units, retail and restaurant uses, conference and meeting rooms and a spa and health club. The third item on the agenda was the Vail Amoco Site Rezoning discussion. Also at the applicant's request, Greg Moffet motion to table second reading of a companion ordinance to rezone the Vail Amoco Site from the Heavy Service. zone district to the Public Accommodation zone district. Dick Cleveland seconded the motion, A vote was taken on the motion and the motion passed unanimously, 7-0. The ordinance was tabled to July 15 to accompany other approvals necessary for construction of the Four Seasons Resort which will replace the Vail Amoco station and the Chateau at Vail near the Main Vail roundabout. The fourth item on the agenda was the Creation of Timber Ridge Affordable Housing Corporation. Greg Moffet moved to table first reading of Ordinance #14, an ordinance authorizing creation of the Timber Ridge Housing Corporation and the making of a loan to the corporation to acquire the 198-unit property. Dick Cleveland seconded the motion. A vote was taken and the motion passed unanimously, 7-0. The measure was tabled at the request of Town Attorney Matt Mire, who said additional financial details had not been finalized. The measure will be brought before the Council on July 1 in the form of an emergency ordinance. Previously, the Council had authorized staff to create the Timber Ridge Affordable Housing Corporation under provisions of the Colorado Nonprofit Corporation Act for the purposes of acquiring, operating and maintaining the property. In April, the Council voted 7-0 to pursue a friendly condemnation of the property for a purchase price of $20 million. At the time, Councilmembers had reviewed a financial analysis showing sufficient cash flows to cover the town's debt. The fifth item on the agenda was a Request to Proceed through the Development Review Process, re: VistaBahn Building Outdoor Dining Deck. Diana Donovan moved to grant a request by owners of the Vista Bahn Building at 333 Hanson Ranch Road to proceed through the town's development review process to request ,relocation of a pedestrian walkway as the applicant pursues town approval of an outdoor dining deck. Dick Cleveland seconded the motion. A vote was taken and the motion passed 6-1, Greg Moffet in opposition. The applicant, Remonov and Company, had originally requested Council permission to seek development review of a design involving the use of a portion of town land for the dining deck, in addition to the pedestrian walkway relocation, but a motion offered by Councilman Greg Moffet failed to receive a second. During the public comment period, the Council heard from Paul .Johnston of the Christiania Lodge who said he also represented other neighbors to the east of the Vista Bahn Building. Johnston expressed concerns about an outdoor dining deck because of noise issues that are already impacting the neighborhood. Also, Jim Lamont of the Vail Village Homeowners Association shared a compromise concept that would address several problems, including 2 certain protections contained in a newly disclosed covenant. A different design for an outdoor dining deck was approved by the town in 2000. However, the approval expired when the owners failed to pull a building permit. The applicant must now provide a new outdoor dining deck application as well as the possible .relocation of the pedestrian walkway, which will be reviewed by the Design Review Board and the Planning and Environmental Commission. The sixth item on the agenda was the Children's Garden of Learning Loan Request. Greg Moffet moved approve a $50,000 no-interest loan to the Children's Garden of Learning to be repaid within 10 years. Chuck Ogilby seconded the motion. A vote was taken and the motion passed 5-2, Bill Jewitt and Diana Donovan voting against. The loan will be used to cover interior and exterior expenses associated with the child development center when it temporarily relocates to Red Sandstone Elementary School. The Children's Garden of Learning, which serves up to 125 toddlers and preschoolers, is currently located on the town-owned Middle Creek site. The relocation is required to enable construction of a new $1 million school to be financed by Coughlin & Company, the developer of the Middle Creek housing project. Construction is set to begin next month with the new child development center completed in September 2004. Speaking on behalf of the Children's Garden of Learning, Tamra Nottingham Underwood, a parent volunteer, described how the funds would be used to prepare a 1,500 sq. ft. classroom space at the elementary school and an outdoor play area. The space must meet state certification requirements, she said. In addition, the playground design, which includes retaining walls and fencing, must. undergo review by the town's Design Review Board. Given the temporary nature of the facility, which will be used for just 18 months, Underwood asked the Town Council to use its influence over the Design Review Board to adopt a flexible and cost-savings approach to the situation. She said the school plans to open its interim facility on July 14 with the playground in place by Aug. 19. During Council discussion, Bill Jewitt expressed concerns about the town's fiduciary responsibility and the unsecured nature of the loan, while Diana Donovan suggested shortening the school's 15-year payback proposal. Underwood said the school will be able to cash-flow $3,300 in annual payments. In making the motion fora 10-year payback period, Greg Moffet complimented the group for its operation of an excellent facility and urged the group to continue to look for cost efficiencies during the interim relocation, including continued discussions with the Eagle County School District in an effort to waive the $21,0:00 annual fee to lease the space. While Underwood thanked the Council for its support, she said the representatives would have been even more pleased to see Council approve a grant rather than a loan. The seventh item on the agenda was the Holy Cross Energy Easement Greg Moffet moved to approve a motion to grant Holy Cross Energy permission to proceed with preparing easement documents that will be necessary for an underground power line construction project in the Spraddle Creek and Potato Patch areas in which the project will cross Town of Vail property. Bill Jewitt seconded the motion. A vote was taken and the motion passed unanimously, 7-0. During discussion, Councilman Dick Cleveland suggested the need to ensure the project area, once completed, is restored to its natural landscape. Jim Lamont of the Vail Village Homeowners Association stressed the 3 importance of Vail's natural beauty and also expressed the need to restore the cuts properly. The eighth item on the agenda was the Bighorn Flood Remediation. Dick Cleveland motioned to approve an expenditure of $61,300 from the town's capital fund balance to augment additional funding to reconstruct the two East Vail streets that were damaged by the June 1 flood. Chuck Ogilby seconded the motion. A vote was taken and the motion passed 6-1, Diana Donovan opposing. The work will occur on Spruce Way from Spruce Drive to Bighorn Creek, and Columbine Drive from the north end of the tunnel to Bighorn Road. The project will cost an estimated $253,050. Public Works Director Greg Hall said the Colorado Department of Transportation is expected to contribute $141,750 towards the project. An additional $50,000 from the town's capital street improvement budget will be applied. Hall had presented a second option for a minimal rebuild at the CDOT reimbursement cost of $141,750. However, Hall noted the town would need to return to reconstruct the street in five to 10 years at an additional cost of approximately $300,000. The higher priced option, according to Hall, which includes full reconstruction and substantial improvements to the existing drainage system, would extend the life of the pavement structure for 30 to 40 years. In voting against the higher priced option, Councilmember Diana Donovan said she wasn't convinced the neighborhood streets, built in 1976, needed to be reconstructed. Next steps include additional negotiations with the low bidder, Ewing Trucking and Construction. The ninth item on the agenda was the Authorization of Middle Creek Private Activity Bonds. Greg Moffet moved to approve first reading of an ordinance authorizing the issuance of a maximum of three series of bonds totaling $18.5 million by the town for the Middle Creek Village Apartments project. Bill Jewitt seconded the motion. A vote was taken and the motion passed unanimously, 7-0. Prior to the vote, the project's bond counsel, Mike McGinnis, said the town is serving as an issuer of the. bonds for tax purposes under a state statute known as the County and Municipality Revenue Bond Act and that there will be no debt or obligation by the town for repayment. Prior to second reading, Councilmembers asked that the bond documents be amended to remove the childcare development center and the land as collateral. The tenth item on the agenda was Resolution #6, the Local Disaster Resolution. Bill Jewitt moved to adopt the resolution declaring a local disaster as defined by state statutes. Greg Moffet seconded the motion. A vote was taken and the motion passed unanimously, 7-0. The declaration is in reference to the Bighorn Creek flood, which occurred June 1, causing more than $2 million in damage to public and private property. In introducing the resolution, Town Attorney Matt Mire said the action is necessary to start the process for requests to state and federal agencies for financial assistance. The eleventh item on the agenda was the Town Manager's Report. During the town manager's report, the Council directed interim manager Pam Brandmeyer to follow up on a letter from Gov. Bill Owens requesting the town's support for a statewide ballot issue 4 on water resources in November. Councilmembers suggested atown-sponsored public discussion on the topic with presentations from multiple interests. The Council voted 4-3 (Jewitt, Cleveland, Donovan against) to authorize $3,000 to complete the initial design process for a proposed indoor recreation facility at Red Sandstone Elementary School. As proposed by Councilman Chuck Ogilby, the money would be used to modify an earlier design to address a new, more efficient parking configuration. To date, the town has spent $5,000 for design work by Fritzlen-Pierce Architects. The funding comes from a $400,000 recreation facility escrow account resulting from the town's sale of the Old Town Shops to the Eagle River Water and Sanitation District. The town shops had long housed the gymnastics program operated by the Vail Recreation District. The program has since moved to a temporary facility in Avon. The town has identified a $1.4 million budget for a permanent facility, which anticipates a $600,000 contribution from the Eagle County School District. During discussion, Councilman Dick Cleveland said he was reluctant to spend additional money on the design until participation from the school. district is clarified. Also voting against the motion was Bill Jewitt, who said the project had not been reviewed or approved by the Council, while Diana Donovan voted against due to concerns about the lack of a recreation facilities master plan. The remaining councilmembers who voted in favor of the funding said they were comfortable with the $3,000 expenditure since it would be coming exclusively from the escrowed funds. Also during the town manager's report, the Council directed the staff to research the cost of a Tax Increment Financing reinvestment study from the Vail Chateau east to Crossroads and to notify Solar Vail regarding the placement of a trash dumpster on town land. Also, Councilmember Diana Donovan asked for clarification on the decision- making process for design of a fire station on the Hud Wirth site in West Vail, noting the need to maximize the site for additional uses. That prompted a suggestion from Dick Cleveland to master plan the site prior to the fire station design. As there was no further business, Greg Moffet made a motion to adjourn. Bill Jewitt seconded the motion. A vote was taken and the motion passed unanimously, 7-0, and the meeting was adjourned at 8:15 P.M. Respectfully submitted, Ludwig Kurz, Mayor 5 ATTEST: Lorelei Donaldson, Town Clerk ~- VAIL TOWN COUNCIL AGENDA EVENING MEETING 6 P.M. TUESDAY, JUNE 17, 2003 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1. ITEMlTOPIC: Citizen Participation (5 min.) 2. Allison Ochs ITEMROPIC: Second Reading of Ordinance No. 9, Series of 2003, an Y•~b ordinance repealing and re-enacting Ordinance No. 14, Series of 2001, providing for the major amendment of Special Development District No. Y~ 36, Four Seasons Resort, and amending the approved development plan ~ C for Special Development District No. 36 in accordance with Chapter 12- 9A Vail Town Code and settin forth details in re ard thereto (5 min ) \~ , g , g . . ` ACTION REQUESTED OF COUNCIL: Table Ordinance No. 9, Series of 2003, on second reading to July 15. BACKGROUND RATIONALE: Ordinance No. 9, Series of 2003, amends Special Development District No. 36 to allow for the redevelopment of the existing Chateau at Vail and Vail Amoco site. The proposal includes 118 accommodation units, 22 fractional fee. club units, 34 Type III Employee Housing Units, 18 condominiums, retail and restaurant uses, conference and meeting rooms, and a spa and health club. On May 6 the Town. Council voted to approve Ordinance No. 9, Series of 2003, on first reading, and set second reading to occur on June 17. However, at this time the applicant has yet to meet one of the conditions regarding the relocation of parking for 9 Vail Road, and has therefore asked for the second reading to be tabled to July 15. STAFF RECOMMENDATION: The Community Development Department recommends the Town Council table Ordinance No. 9, Series of 2003, on second reading to July 15. 3. Allison Ochs ITEM/TOPIC: Second Reading of Ordinance No. 10, Series of 2003, ~'~ Rezoning the Vail Amoco Site. (5 min.) ` ~~ An ordinance amending the official zoning map for the Town of Vail in ~ accordance with Title 12, Zoning Regulations, Chapter 5, Zoning Map; ~~ Rezoning Lot 9A, Vail Village 2"d filing, from the Heavy Service zone ~b district to the Public Accommodation zone district. ACTION REQUESTED OF COUNCIL: ~ Table Ordinance No. 10, Series of 2003, on second reading. BACKGROUND RATIONALE: On May 6 the Town Council approved on first reading Ordinance No. 10, Series of 2003, an ordinance rezoning Lot 9A, Vail Village 2"d Filing from Heavy Service zone district to Public Accommodation zone district, in accordance with Section 12-3-7, Vail Town Code. The rezoning is in association with the proposed major amendment to Special Development District No. 36, Four Seasons Resort, as outlined in Ordinance No. 9, Series of 2003. At this time the applicant has yet to meet one of the conditions regarding the relocation of parking for 9 Vail Road, and has therefore asked second reading to be tabled to July 15. . STAFF RECOMMENDATION: The Community Development Department recommends the Town Council table Ordinance No. 10, Series of 2003, on second reading to July 15. 4. Matt Mire ITEM/TOPIC: First reading of Ordinance No. 14, Series of 2003, an Nina Tim~rf~ ordinance authorizing the creation of Timber Ridge Affordable Housing vV 0 Corporation and the making of a loan to Timber Ridge Affordable Housing .~ ~ ~ ~~ Corporation in connection with the Corporation's acquisition of Timber Ridge k apartments and authorizing the execution and delivery of a project agreement concerning such project; ratifying action previously taken and appertaining r~,~ thereto; repealing all ordinances in conflict herewith. (5 min.) v ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 14, Series of 2003 on first reading. BACKGROUND. RATIONALE: The Vail Town Council has determined to form the Timber Ridge Affordable Housing Corporation under provisions of the Colorado Nonprofit Corporation Act, Articles 121 through 137 of Title 7, Colorado Revised Statutes, as amended, for the purpose of acquiring, operating, maintaining and developing the Timber Ridge multifamily rental housing project. STAFF RECOMMENDATION: Staff recommends the Town Council table Ordinance No. 14, Series of 2003, on first reading to July 1. 5. Bill Gibson ITEM/TOPIC: Request to proceed through the development review ~; a.p process with a proposal to construct a portion of a new outdoor dining deck on Town of Vail property. (20 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny the applicant's request to proceed through the development review process. BACKGROUND RATIONALE: It is the desire of Remonov & Company, owners of the Vista Bahn Building, to construct a new outdoor dining deck at the Tap Room, located at 333 Hanson Ranch Road/Lot C, Block 2, Vail Village 1S` Filing. A.J Since Remonov & Company is proposing to construct a portion of the !y~'" new outdoor dining deck on Town of Vail property located directly south ~ of the Vista Bahn Building property boundary, Town Council permission is ~ required to proceed through the development review process. ~~ ~ '°~.~ STAFF RECOMMENDATION: ~~~ ~'he Community Development Department recommends the Town ~~;J' `ouncil approve this request to proceed through the development review ~ ~ process. Please note that an approval of this request does not constitute ` ~' ~ approval of the proposed improvements, it only allows the applicant to proceed through the development review process. The Town Council will ~' ,0~ - be informed of the status of the proposal through periodic updates of the z l~ DRQ and SEC meetings. ~ ~j i I~ (, (,e.IT u 1 6. An er ITEM/TOPIC: Chil ren's Garden of Learning Funding R ques ove to ~C ~Sb,pO 19~~b Red Sandstone Elementary School (30 min.) `~( ~.,~-(~. ~'W ~ ~• lG N,,d, 7. Greg Hall ITEM/TOPIC: Holy Cross Energy Easement (10 min.) Q ~, Tom Kassmel C1~U-r,~ ~ 7~ ~ o ACTION REQUESTED OF COUNCIL: ~, a! ~r,(,~~ Approve Request BACKGROUND RATIONALE: b Holy Cross Energy is currently in the design and permitting phase of a K .~ large underground power line construction project. The purpose of the '~.;~ project is to provide. needed electrical facilities to meet and better serve `~ the increasing power demands of the Town of Vail and the Vail Resort's ski area. In order to complete the project, Holy Cross will need to cross Town of Vail property, thus they will be required to be granted an easement. The Town request permission to proceed with granting Holy Cross the required easements and return to council with an ordinance and documentation to officially document the easements. STAFF RECOMMENDATION: The Public Works Department recommends the Town Council grant Holy Cross permission to proceed with preparing easement documents and an ordinance to be approved at a later date. 8. Greg Hall ITEMlTOPIC: Bighorn Flood Remediation (25 min.) Tom Kassmel ,~`~ ACTION REQUESTED OF COUNCIL: Approve Request BACKGROUND RATIONALE: The Town of Vail has developed a set of schematic bid plans and a bid schedule to facilitate the timely reconstruction of the flood impacted roadways. The plans are limited to major road reconstruction work within the Town of Vail right-of-way and do not include the extensive work that will be required to repair impacted drainage ways. This additional i drainage work is expected to be completed in a timely manner and reimbursed by CDOT. The bid plan and schedule that was developed merely establishes unit prices for major construction items. It does not include items such as re- vegetation, utility conflicts and other unforeseen construction items. In response to our bid request, the Town has received bids from three, contractors. After discussions with each contractor the bids compare as follows: Description Site Resource B&B Ewin Upper Columbine $ 51,122.79 $59,021.87 $48,615.50 Lower Columbine $15,388.59 $15,231.01 $12,222:40 Bighorn Rd. $ 8,947.00 $5,948.13 $4,453.30 Spruce Way $41,392.82 $42,193.05 $38,095.00 Diversion Drainage $4,010.00 $5,782.29 $1,800.00 Total $120,861.20 $128,176.35 $105,186.20 Based on the bids received the Town of Vail suggests that a contract be awarded to Ewing Trucking and Construction. The contractor is aware that change orders are inevitable and that additional work will be warranted as site conditions allow. The Town suggests a contingency of at least 35 percent be added to allow for unforeseen conditions and those items not included above. The above costs includin the additional contin enc surve and desi n 9 9 Y~ Y 9 costs are anticipated to be reimbursed by CDOT. The Town will be meeting with CDOT Friday, June ~, 3 to discuss construction and reimbursement. ~~ In addition, after further review and investigation of the existing condition of the roadways in need of repair, we have determined that it may be prudent to expand the scope of work for these roadways and construct additional road and drainage improvements at this time. By completing these additional road improvements the Town will be able to fully reconstruct portions of Spruce Way and Columbine Drive and extend their life span an additional 20 to 30 years. The Town proposes two alternatives: Alternative #1 -Minimal Reconstruction Reconstruct only what is necessary to repair the road damage from the flood. This alternative will only mitigate the immediate damage and the roads will still need to be fully reconstructed within the next five to 10 years, at an additional cost to the Town of approximately $300,000 (cost projected six years out). .Alternative. #2 -Full Street Improvement Reconstruct approximately 1,800 linear feet of road, specifically including Spruce Way from Spruce Drive to Bighorn Creek and Columbine Drive , from the north end of the tunnel to Bighorn Road. The full reconstruction would include substantial improvements to the existing drainage system and a new pavement structure for the full width of the roadway. This will extend the life of the pavement structure for 30 to 40 years. The following is a breakdown of the estimated costs: Bighorn Flood Remediation Alternatives June 11,2003 Alternative No.1-Minimal Reconstruction Road Reconstruction (includes 35% contingency) $ 141,750.00 Anticipated CDOT Reimbursement $ 141.750.00 Town of Vail Cost $ 0.00 Alternative No. 2-Full Street Improvements Road Reconstruction (includes 35% contingency) $ 141,750.00 Pulverize Roadways $ 11,600.00 Additional Asphalt $ 23,474.00 Additional Grading $ 4,000.00 Additional Haul $ 2,000.00 Storm Sewer $ 38,700.00 Manhole $ 3,000.00 Inlet $ 2,500.00 Curb & Gutter $ 14,625.00 Misc. Savings. $ (3,600.00) Design, Survey, Testing $ 15.000.00 Total Cost $ 253,050.00 Anticipated CDOT Reimbursement $ 141,750.00 Town of Vail Cost $ 111,300.00 It is our recommendation the Town Council approve moving forward with Alternative No.2 and allow us to continue to develop full reconstruction plans for the roadways within the limits described above, and allow us to further negotiate with the low bidder, Ewing Trucking and Construction, for the additional work and award a contract to-Ewing Trucking and Construction for Alternative No. 2 once final plans and negotiations have been completed. Alternative No. 2 will potentially afford the Town a savings of $200,000 within six years and limit road construction in that area to this year.... ~. ~~ ~ ~ o~ ~ ~''' ~ ~~ ~ ~j~` ~- ~~~ We have approximately $50,000 of the above needed amo ' ~~~ ~4 from the Capital Street Improvement Budget. This will r uire $61,300 in a supplemental from the Capital Projects fund balance. STAFF RECOMMENDATION: ~p~~` ~' Q The Public Works Department recommends approving the above request. ~ ~ ~+ 8. Mike McGinnis ITEM/TOPIC: First Reading of Ordinance No. 15, Series of 2003, Private Matt Mire Activity Bonds for Middle Creek (15 min.) `~~ ~~yj~ ~ ~S ACTION REQUESTED OF COUNCIL: Approve. 7 (~~ BACKGROUND RATIONALE: ~ - This Ordinance authorizes issuance of Bonds by the Town for Middle r ~ Creek Village Apartments project. The Bonds are not a debt or obligation v of the Town within the meaning of Tabor or any other state or local law, but are issued under the state statute known as the County and Municipality Revenue Bond Act, which specifically limits the obligations of the Town. Bond proceeds will be loaned to Middle Creek Village, LLC., who is solely responsible to pay for debt service on the Bonds as well as issuance costs. Issuance of this type of bonds is a common form of financing for low-cost financing of affordable multifamily housing. STAFF RECOMMENDATION: Approve 9. Matt Mire ITEMlTOPIC: Resolution No. 6, Series of 2003, a resolution declaring a $~bb local disaster; and providing other details relating thereto. (15 min.) ~~ ~~ (! ~ ACTION REQUESTED OF COUNCIL: v Approve. ~``~ o~ BACKGROUND RATIONALE: "~ On or .about June 1, a flood occurred when a culvert under I-70 was unable to carry water from Bighorn Creek, creating a 20 foot by 20 foot sinkhole in the Westbound lanes of the interstate near the East Vail, I-70- interchange. Said flood resulted in flooding into East Vail neighborhoods damaging both private property and public infrastructure, requiring ongoing emergency action to avert danger and/or damage. The flooding originally occurred on June 1 and has required an ongoing response ever since. Pursuant to Colorado law, the effect of this declaration of disaster shall be to activate the response and recovery aspects of any and all applicable local and interjurisdictional disaster emergency plans and to authorize the furnishing of aid and assistance under such plans. S AFF RECOMMENDATION: ,`y ~~ a~pprove 10. ~ Town Manager's Report (5 min.)'~~~'S ~~~~ ~ ~~~ .~ o . ~~,~~ ~,, e 11. Adjournment (8:20 P.M.) NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT 2 P.M. ON TUESDAY, JULY 1, 2003 IN THE TOV COUNCIL CHAMBERS. THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BEGIN AT 6 P.M. ON TUESDAY, JULY 1, 2003 IN TOV COUNCIL CHAMBERS. Sign language interpretation available upon request with 24-hour notification. Please call 479- 2332 voice or 479-2356 TDD for information. k MEMORANDUM TO: Vail Town Council FROM: Pam Brandmeyer, Interim Town Manager Judy Camp, Finance Director RE: November Ballot Recommendation DATE: June 26, 2003 1. INTRODUCTION Last November, the Vail Town Council asked voters to consider a 4 mill property tax increase for the purposes of "increasing fire protection and suppression resources and for the construction, acquisition, or maintenance of capital projects." The measure lost by 55 votes. To learn why the initiative wasn't successful and to evaluate current voter preferences and opinions, the town conducted two focus groups in March and added several election-related questions to the annual community survey, which also was conducted in March. Using the qualitative and quantitative research, along with town revenue projections, the Town Council has since evaluated a variety of ballot scenarios for the upcoming November election. During the June work sessions, those options were narrowed to a ballot measure that would seek support for a modest property tax increase to be used to build and equip a new fire station in West Vail and renovate the existing fire station at Main Vail. The election timetable requires first reading of a ballot ordinance at the August 5 evening meeting. Staff has met to review the options and recommends asking voters to consider a property tax of 1.42 mills for fire services improvements on the Nov. 4 ballot. The rationale is presented below. 2. ASSESSMENT OF NEED Historically, the Town of Vail's largest single revenue source has been sales tax. In the 1980s, the town experienced a decade of double digit growth in its sales tax collections as Vail continued to evolve and mature as a resort community. This enabled the town to invest significantly in its infrastructure with new roads and pedestrian plazas as well as construction of the library. By the early 1990s, due in part to Vail's build-out and a softening of the ski industry, a shift in the growth pattern occurred with only modest sales tax growth. Today, sales tax revenues are declining at a time when additional public investment is required to rebuild Vail's infrastructure in preparation for an estimated $750 million in private redevelopment. The following examples illustrate the town's financial challenges: • A 5-year capital projects plan identifies $66.6 million in infrastructure repairs and improvements and $55.1 million in anticipated revenues and cost-sharing, for a shortfall of $11.5 million. • TOV's 2003 operating budget has been reduced by $1 million to help offset declining sales tax income. • Revenue from Vail property taxes will be lowered in 2004 by $125,000 due to a $25 million decrease in overall 2003 assessments for Vail properties. • TOV's 2004 revenue forecast has been reduced by an additional $218,700 due to lowered sales tax projections (1 percent growth over 2003, instead of a 2.5 percent growth projected previously). Sales tax declines can be expected during redevelopment construction in Vail Village and Lionshead. An eventual rebound in sales tax revenues is expected once redevelopment projects in Vail Village and Lionshead are completed. Lastly; the town has identified the need for increased fire protection services to include construction- and staffing of a third fire station. 3. FIRE SERVICES COSTS The estimated debt service for a new fire station, a new fire truck and repairs to the Main Vail fire station are included in the town's 5-year plan. Currently, $350,000 per year is budgeted for these capital costs. However, revised estimates recommend a budget adjustment of $436,000 annually over 20 years as follows: Estimated Construction/Purchase Cost New Fire Station (10,800 sq. ft.) $4,200,000 Major Remodel Main Vail (7,150 sq. ft.) $ 550,000 New Fire Truck $ 485,000 Estimated Annual Cost of Debt Service New Fire Station $ 350,000 Major Remodel Main Vail $ 46,000 New Truck $ 40,000 $ 436, 000 Given authorization to proceed by the Town Council, construction of a new fire station could occur in spring 2004 following design and development review approvals earlier in the year. Construction would take approximately 6 to 8 months, to be followed by remodel of the Main Vail fire station. The hiring of a third fire company would occur in fall 2004. The third company, an additional 7 fulltime firefighters, plus 5 student firefighters, would staff and operate the new fire station for an additional $325,750 in annual operating costs. This would be a recurring, additional expense to the town's general operating budget. One way to address the ongoing expense is through additional efficiencies in the town's operating budget, such as consolidation of emergency services. Those discussions are underway. A preferred funding consideration is to seek a dedicated revenue source for operation of the third fire station. This would provide some relief to an already strapped general operating budget. New Station Annual Operating Costs Operating $ 65,000 Personnel $260,750 $325, 750 The need for additional municipal revenues is well documented and generally understood by the community at large. While fire services are currently included in a long list of capital projects, the town is unable to finance all of its priorities based on existing revenues. The general operating budget is similarly strained and will require additional adjustments to accommodate operation of a third fire station. 4. RESEARCH 2 Results from the focus groups held in March suggest a willingness by Vail voters to support a fire services initiative. It was identified as a core service which personally affects them and has a public safety component. Additionally, the report suggests the town be as specific as possible when returning to voters with a ballot question: "Any potential initiative placed before the voters must be extremely specific and should be constrained to one general "area" such as fire. Voters squarely place the blame for last year's defeat on the fact that the ballot language was so generic, they could not understand the concrete benefits which it would provide them." Additional research from the annual telephone survey suggests the town should not rely on budget cuts alone to improve its financial situation. When asked if the town's $1 million in recent budget cuts was too deep, about right, or not deep enough, the majority of respondents, 53 percent, said they were "about right," with 14 percent saying "too deep" and 11 percent responding "not deep enough." Based on the research, staff is compelled to recommend a fire services ballot issue that meets the level of specificity identified by the focus group participants. 5. BALLOT RECOMMENDATION Staff recommends a 1.42 mill fire services ballot that covers all new costs associated with a third fire station and the remodel of the Main Vail fire station. This would include construction, equipment and operations as follows: • .81 mill property tax for fire services capital construction and equipment to include a new fire station, remodel of the Main Vail fire station and a new ire truck which would sunset after 20 years. • .61 mill property tax for staffing and operation of the third fire station Together, the taxes would generate $770,000 per year and would provide the following community benefits:' • It's affordable. Only $11.42 per $100,000 in home value. (The impact-was $36.60 per $100,000 in home value during the last election). • A portion sunsets in 20 years. • Tax money will be spent on a specific, identifiable purpose approved by the voters. • Everyone benefits with improved fire service across the community. • Does not preclude consolidation discussions with the Eagle River Fire Protection District, Beaver Creek Metro District or the Eagle County Ambulance District. • Frees up $2.2 million over the next 5 years to be applied toward economic recovery, which has also been identified as a critical need by the community. 6. SUMMARY Given the analysis presented above, staff recommends directing Town Attorney Matt Mire to draft a ballot question ordinance reflecting a property tax for fire service capital construction, equipment and operations to be reviewed at the July 15 evening meeting with first reading and a public hearing to occur at the August 5 evening meeting. Attachment Public Opinion Strategies Focus Group Summary, March 2003 3 ATTACHMENT In Sum While we will certainly see if the assumptions drawn from these focus groups beaz out in the quantitative community survey, the reseazch conducted thus far certainly indicates some strategic recommendations for the Town Government: Make progress on the conference center: Voters' skepticism over the town's inability to create and follow through on a vision will only be further eroded if they do not see some progress being made on the last initiative they passed in the town. Show them the (cut) money. Budget cuts need to be demonstrated repreatedly. Otherwise, voters will perceive the town as still having "fat" that can be trimmed without impacting the core services they cherish. Fire is the Focus: Clearly, funding fire is the only general area which musters much support at all among voters. It meets their criteria - it is a core service which personally affects them and has a public safety component Be specific: Any potential initiative placed before the voters must be extremely specific and should be constrained to one general "area" such as fire. Voters squarely place the blame for last year's defeat on the fact that the ballot language was so generic, they could not understand the concrete benefits which it would provide them Be constrained: There is a strong sense that everything the town undertakes turns into an extravagant "world class" effort with a corresponding budget. Voters want the town and its facilities to be attractive and adequate, but there is little support for the "extras." Watch for public azt, fancy-sounding materials or other components which are easy tazgets for skeptics disenchanted with the pavilion at Donovan Park. This is especially true for the conference center and any plans for new facilities or re-vitalization efforts. TIF is a valid option: While there is resistance to financing revitalization efforts (streetscape, road projects, etc.) in the commercial core with a property tax increase, TIF faces no such mental barriers. It is considered a valid option that the town should consider. Some financing of these efforts is considered appropriate for a destination resort community, however the more public- privatepartnerships that can be created the better. Grassroots is key: Any initiative advanced by the town, must NOT be construed by voters as solely a town governmevtlcouncil desire or it will be viewed with greater skepticism. There must be a strong grassroots organisation that actively campaigns on behalf of the initiative. Fire fighters can certainly be a part of this effort (within the appropriate legal constraints of course), but this effort needs to identify citizens throughout town who will lend their name, time and funding to a true citizen-driven campaign Public Opinion Strategies Page 10 Town of Vail Focus Groups Summary March 25, 2003 Parking is not permanent: Parking efforts need to be centered on finding solutions that address the winter weekend problem, as voters are extremely reluctant to invest in expensive, permanent parking. structures in town. Locals are NOT willing to pay for pazking at all, as this is seen as a skier problem - not a local problem The "vision thing ": The election of a nu~er of new council members this fall and the hiring of a new town manager provides a unique opportunity for the council and town government to work together to address voters' concerns that there is no vision for the future of Vail. While voters lack focus in their own desires for town, they will certainly hold their elected officials and public servants to a higher standard on this issue. Public Opinion Strategies Page 11 Town of Vail Focus Groups Summary March 25, 2003 MEMORANDUM TO: Town Council fROM: Community Development Department -DATE: July 1, 2003 SUBJECT: An appeal of the Design :Review Board decision to deny DRB03-0110, a .final review of ;proposed awnings at he Ore House, located at 2~2'Bridge Street/Lot D, `Block'5, Vail Village 1 sc Filing Appellent: Larry Anderson Planner: Allison Ochs I. SUBJECT PROPERTY The subject property the Ore House Restaurant .and -Bar, located at 232 Bridge Street / -Lot D, Block 5, Vail Village 1 st filing. The,property is zoned Commercial Core I. II. ''STANDING OF APPELLANT The appellant has standing to file an appeal as the owner of the Ore House. III. REQUIRED ACTION The Town Council shall uphold, overturn, or modify the Design Review .Board's denial of 'DRB03-0110, a final .review of proposed awnings at the Ore House, located at 232 Bridge Street/Lot D, .Block 5, Vail Village 1st Filing. Pursuant to Sub-section 12-3-3-C5, Vail Town Code, the Town Council is required to °make #indings of fact in accordance with the Vail Town Code: The Town Council shall on all appeals make specific findings of fact based .directly on the particular evidence presented to it. These findings of fact must support conclusions that .the standards and conditions imposed by .the requirements of this :title (Zoning Regulations, Title 12) have or have not been .met. IV. DESCRIPTION OF THE REQUEST The applicant, Larry Anderson, submitted an application to erect clear plastic awnings which roll up into the existing deck awning at the Ore House Bar and Restaurant. Pictures of the awnings have been attached for reference (Attachment A). The application was in response to an enforcement letter sent by the Community Development Department for erecting the clear plastic awnings without design approval. This letter has been attached for reference (Attachment B). V. BACKGROUND On May 21, 2003, the Design Review Board denied the .proposed awnings at the Ore House. The denial was due to a 2:2 tie of the Design Review Board which, according to :procedure, constitutes a denial of a .:proposal. The applicant, Larry Anderson, representing the Ore House, submitted an appeal of the Design Review Board's May 21, 2003, decision. The appeal has -been attached for reference (Attachment C). The applicant stated that his appeal is based on the benefit the clear plastic awnings provide during bad weather. VI. APPLICABLE DESIGN GUIDELINES Design Guidelines: 1. Structures shall be compatible with existing structures, their surroundings, and with Vail's environment. It is not to be inferred that buildings must look alike to be compatible. Compatibility can be achieved through the proper consideration of scale, proportions, site planning, landscaping, materials and colors, and compliance with the guidelines herein contained. Staff Response: Staff believes that the proposed materials are incompatible with the existing structure and the environment. Specifically, staff does not believe that the clear plastic awnings meet the intent of this guideline. Previous applications for_clear plastic awnings have been denied, based on non-compliance with the Town of Vail Design Guidelines. Staff believes that approving them in this situation, regardless of frequency of use, will set a precedence for these types of proposals. -The proliferation of the clear plastic material will have a negative impact on the Town of Vail Urban Design Guide Plan: 1. Pedestrianization - A major objective for Vail Village is to encourage pedestrian circulation through an interconnected network of safe, pleasant, pedestrian ways.. Staff Response: Staff believes that the proposed clear plastic awnings create too much of a street enclosure and intrudes into the openness of the streetscape, making the pedestrian circulation less pleasant. 2. Decks and Patios -Dining decks and patios, when properly designed and sited, bring people to the streets, opportunities to look and be looked at, and generally contribute to the liveliness of a busy street - making a richer pedestrian experience than if those streets were empty. A review of successful decks/patios in Vail reveals several common characteristics: • Direct sunlight from 11:00 - 3:00 increases use by many days/year and protects from wind • Elevated 3 to 5 feet to give views into the pedestrian walk (and not the reverse) • Physical separation from pedestrian walk of 10 to 12 ft. (planter better than a wall) • Overhang gives pedestrian scale/shelter Decks and patios should be sited and designed with due consideration to: sun, wind, views, and pedestrian activities. 2 :Staff .Response: Staff believes that the intent of outdoor dining decks is to provide interest to the street. By enclosing this space with clear plastic awnings, the interest to the street is lost. Some outdoor dining decks or portions of dining decks have been .permanently enclosed, i.e. Pepi's, Red Lion, and a deck on the creekside at .Sweet Basil. All of these permanent structures have been subject to site coverage, setbacks, etc. The Design Review Board stated that some of these deck enclosures -have negatively impacted the pedestrian experience in Vail. 3. Accent Elements -The life, and festive quality of the Village is given by judicious use of accent elements which give color, movement, and contrast to the Village. Colorful accent elements consistent with existing character are encouraged, such as: • Awnings and canopies -canvas, bright color or stripes of two colors. • Flags, banners -hanging from buildings, poles, and even across streets .for special occasions. • Umbrellas -over tables on outdoor dining decks. • Annual color flowers - in beds or in planters. • Accent lighting -buildings, plazas, windows, trees (even Christmas lights all winter). • Painted wall graphics -coats of arms, symbols. Accent compositions, -etc. • Fountains -sculptural, with both winter and summer characteristics. Staff Response: The Vail Village Design Considerations encourages the use of awnings, canopies, and umbrellas over tables on outdoor patios. The use of plastic is discouraged. Vail Village Master Plan Goal 1: Encourage high quality redevelopment while preserving the unique architectural scale of the village in order to sustain its sense of community and identity. :Staff Response: The Design Review Board and staff believe that the proposed awning is of character within the architectural scale of the Village. The ..proposal does not meet the intent of Goal 1 of the Vail Village Master Plan. Goal 3: To recognize as a top priority the enhancement of the walking experience throughout the Village 3.3 Encourage a wide variety of activities, events, and street life along pedestrian ways and plazas. 3.3.2 Outdoor dining is an important streetscape feature and shall be encouraged in commercial infill or redevelopment projects. Staff Response: Staff feels that the current proposal does not meet the intent of Goal 3 of the Vail Village Master Plan. As proposed, the outdoor deck simply becomes "enclosed" space. 3 VII. STAFF RECOMMENDATION The Community Development Department recommends that the Town Council upholds the Design Review Board's denial of the proposed clear plastic awnings at the Ore House Bar and Restaurant, located at 232 Bridge Street/Lot D, Block 5, Vail Village 1st Filing subject to the following findings: 1. That the proposal does not meet the intent of the guidelines as established by Section 12-11-5 (Design Guidelines) of the Town Code and outlined in Section V of this memorandum. 2. That the proposal does not meet the intent of the guidelines as established by the Vail Village Urban Design Guide Plan -and as outlined in Section V of this memorandum. Should the Town Council choose to overturn the Design Review Board's denial of the request, the Community Development Department recommends that the Town Council also direct staff to amend the Design Guidelines to allow for this material. VIII. ATTACHMENTS A. Photos of proposed awnings B. Enforcement Letter, dated March 6, 2003 C. Appeals Form, received May 30, 2003 D. Final Agenda of Design Review Board meeting of May 21, 2003 4 e3 ~ --yw.a ,r r ~: `Gr .. ~~,~ ,a .h? f ` i - '' - ~' ~ ~ _J. ~ _ ,~ Q .,--~ C N U t~ ~--~ Q 4__,, _=_ ~~ _- .. L. ~f _ ~~ ~~ ~--~ r f- :.. x `~..!~, ~ ~ ~^ . ~: T a >" _ __ . ,, ~f ~ ~x~ ~~~ ~ 3 ~ t F` ~~{r ~ ~..,~ f - ~// ~ , i~ ~'~' ^~ ~u ~ ~ ~~ .....c _.:. w. 1 ~ Y1 v - y. ~ r- ..- - ~ ...,_ ~ ..- _ir'_ ~.. _.._ ~- ~.- _. _ .. a _.. ___ ~w ., .. ,, _ off`... ~~ a.. "-~+. ~_ "'rev. ~~ ~r y ,_ ., ~~ _ ,~ ~, - ~~ r :< ~ ,~ _ -~J r r~ ~ ` m ~I ~~ ~~ ~ ~~~ ~ v _ ~i R . = , ~.eP ,. - i ~. ~~ /~+fKO f am t.. . , . ~ ~.., _ , + ,. P _ .. ~ . .. ~~ sa „ -ry ~' ~, 11i ~ - .. ~ 7 -4 '1 ~ ~ { : i ~r ~ ~ ~ I ~' i a ~ fi Y ~ 4 ~,~ _;~,. ' r' r _ p~ Pl. ~4 eS { k ~ 4h~-- {{ 9 ~~ jj ~ ~ t ?. p .t -~ ~ '. 1 ~ ~ ~;~ l~k, J r ' rd ,.. ~.,.~,r" :~ ,' ~ j sa, ~~ ~ F Y 't ~~ 'n ' r ~S ~ j~~yc _. .,~ r' ~ _.~~~tiA. $, ~ ~ 1 rr ~ wa . Y '~' .mil ¢ ~~.~-~ . F ref ~- - ' - ~ ~ ~ _ ~ _." L ~. ~.~ ~ ~ °-' t~ia 's v 4~y~~ ~~ 4 ~~ t 4' k F S ~ 7 I ~ t'"1' = r ~ ` ~ ~ . .. i ,z~ ,; ~~ ~ ~ ~ ~ _ - ~ .:~tn ~' _ ` ~_ J1 Y ;~ '~F j* .. . , ~ ~ G # ff S y '{ { ~o-u~::.` 7 y pC 3~~5, .T ~ _`~ `_ c ,. ~. ~ n ` ~I j ~ ~y _ _{ r ~ K~ ~~,.~....~. ~ ~ ~ 1 ~ '~~ _. ~ T y..u - ..._ ~ - F I ~^ ~ J ( S ~' r _ ~ 1! ~~ ~ o , ,~ ~ ~ b r i ~ R s E'~ , t ~ i Ali ~ ~ ~ -~~2,~~` ~ r~_ ~ r_ _~ L .i k^.il ~ ~. _ ~' l` 't' 3 <:. FILE COPY March 6, 2003 Ore House John Beaupre 232 Bridge Street Vail CO 81657 CERTIFIED MAIL-RETURN RECEIPT REQUESTED Re: Unapproved exterior alteration, illegal sign displayed Dear Mr. Beaupre: One of the many functions of Code Enforcement is to provide for the enforcement of the Town of Vail Municipal Codes. It has come to our attention that the above-described property may be in violation of the Town of Vail Municipal Codes as follows: Reported Violation(s): You have placed plastic curtains around your dining deck. You also have a daily special board being placed out in violation of the Sign Code. Section 12-11-3 (DESIGNAPPROVAL) of the Town Code states, in part, that. 12-I1-3: DESIGNAPPROVAL: A. Scope: No person shall commence removal of vegetation, site preparation, building construction or demolition, dumping of material upon a site, sign erection, exterior alteration or enlargement of an existing structure, paving, fencing or other improvements of open space within the corporate limits of the Town unless design approval has been granted as prescribed in this Chapter. The addition of plant materials to existing landscaping, gardening and landscape maintenance shall be exempt from this provision. We are asking that you remove these curtains and no longer display the unapproved daily special board. Failure to do so will result in a summons being issued. Attachment: B ~~ i ~ • W Your prompt attention regarding this matter will be greatly appreciated and will help assure that Vail continues to be the desirable and pleasant resort community for which we all strive. Please feel free to call me with any questions, comments or concerns you may have. My office phone number is 970-477-3417. Very Truly Yours, David Rhoades, Code Enforcement Officer Community Development Department ~~ <~ r - _ Pp ~ _ A eats Form '~; ~:; ~~ ~r ~i ` ,,, ,~S= : j Department of Community Development ' °~ 75 South Frontage Road, Vail, Colorado 81657 1 V rYl~~ V~ V~1L ~ tel: 970.479.2139 fax: 970.479.2452 web: www.ci.vail:co.us General Information: This form is required for filing an appeal of a Staff, Design Review Board, or Planning and Environmental Commission action/decision. A complete form and associated requirements. must be submitted to the Community Development Department within ten (10) business days of the disputed action/decision. Action/Decision being appealed; "',~ Ge ~ ~ - ~ „~ .~- r, .~ .., ... Date of Action/Decision: Board or Staff person rendering action/decision: Does this appeal involve a specific parcel of land? (yes) If yes, are you an adjacent/property owner? (yes) (no) Name of Appellant(s): t /„r~ €~,.p~ Mailing Address: _ ~ ` t°~r^ `'~ Physical Address in Vail: ~~,.. Legal Description of Appellant(s) Pr petty i ail: Lot:_Block:_ Subdivision: Appellant(s) Signature{s , _ /-~.*,. ~~ ~ ..>_wc. r~r~., list of signatures if more space is required). Submittal Requirements: 1. On a separate sheet or .separate sheets of paper, provide a detailed explanatign of how you are an "aggrieved or adversely affected person". j 2. On a separate sheet or separate sheets of paper, specify the precise nature of the appeal. Please cite specific code sections having relevance to the action being appealed. 3. Provide a list of names and addresses (both mailing and physical addresses in Vail) of all owners of , property who are the subject of the appeal and all adjacent property .owners (including owners whose properties are separated from the subject property by a right-of-way, stream, or other intervening barrier). 4. Provide stamped, addressed envelopes for each property owner listed in (3.). PLEASE SUBMIT THIS FORM AND ALL SUBMITTAL REQUIREMENTS T0: TOWN OF VAIL, DEPARTMENT OF,COMMUNiTY DEVELOPMENT, 75 SOUTH FRONTAGE ROAD, VAIL, COLORADO 81657. For Office Use Only: R E C E Date Rece' '~ J~~ Activity No.: planner: ; ~~tY S c ev ppea s. oc Att7nhw..,.~.a. n VED 2003 ..wv..~~,yl~l• V a . ~ ,. -. -.. ,, , ". ,,•- `~0 ~ ~ - a~., ~~' Q NQ ~OUSQ 232 Bridge Street Vail, CO 81 657 ' (970) 4"76-51 00 ` - _ ; -~ ,--"T' c~ ~ v~ S ~ aW-+~. ~ ~ Qi~ i v~ 1 G~ L 'L Cj-~c~" • v~ . 1'~ ~ C ~. ((~~ ` -~cU r' O~ . ~ ~, r„`~,~ ~ S ~ ~ ~-~ Orb S o ~~'~ £' ~~ V~ p:; ~~ ,t? ; -~ Gcr^^ \ ~\ 1- 2 p--^ e. des---e ~ , c~ ~~ ~ ~ Y~ 2 G-e ~S cx..,-- W 2,a~'~'^~r ~ "' ~`F L~~S ~ `~ e- ~ t h e.= S ~ ,~ ~ ~. { - ~ {(yy i ~--~.~~, are. l~ 1 -(G, r ~ Cit. \A r ~ .15 `t- c~~r 7 ~ ' ~ r" Inn ,Q„ cx` Q"'^, d\ L ,Gerv. ~-' ~ m ~' ` `'`, .. V^! v. o-` ~„~,~ ~:c1d ~- ~~- ~"l'` ~ ~~2 -1~.cr~~2."t~"`' C~'tl1v,, ~` U ~ ~ o ~ 1 ~v-vv~..~ Cif ~G~- .S ~ ` ' v .r ~In ~ vi ~4 ,mac ~ re s. s ~-~. e ~~. s-?-. ~~ ~. ~ ~-- c~- ~ ~- i r -e.~r~-~.~- ~ Yti ~ ~~h- ~/ CM C.e`r r~ ,: R a ~. v 2. The applicant shall receive Public Works Department approval of a revocable right-of- way permit, prior to installation of the gates. 2. Ore House DRB03-0110 Allison Final review of proposed awnings 232 Bridge Street/Lot D, Block 5, Vail Village 15t Filing Applicant: Larry Anderson MOTION: Clark Brittain SECOND: Hans Woldrich VOTE: 2-2 MOTION FAILED BY LACK OF MAJORITY/APPROVAL DENIED 3. Dolan residence DRB03-0123 Matt Final review of proposed window addition Lodge at Lionshead, 380 E. Lionshead Circle/Lot 7, Block 1, Vail Lionshead 1,5' Filing Applicant: represented by Rippy Contractors MOTION: Bill Pierce SECOND: Hans Woldrich VOTE: 4-0 CONSENT APPROVED 4. Maresco, Inc. residence DRB03-0134 Matt Final review of proposed window addition '~ Lodge at Lionshead, 380 E. Lionshead Circle/Lot 7, Block 1, Vail Lionshead 15t Filing Applicant: represented by Rippy Contractors ~ ', MOTION: Bill Pierce SECOND: Hans Woldrich VOTE: 4-0 CONSENT APPROVED i 5. Sonnenalp Hotel/Swiss Chalet DRB02-0279 George Final review of proposed major exterior alteration 20 Vail Road, 62 E. Meadow Drive, and 82 E. Meadow brive/Lots K & L, Block 5E, Vail Village 1st Filing Applicant: Sonnenalp Properties, Inc., represented by Braun'Associates, .Inc. j MOTION: Bill Pierce SECOND: Hans Woldrich VOTE: 4-0 FINAL REVIEW OF THE SONNENALP -APPROVED AS SUBMITTED FINAL REVIEW OF THE SWISS CHALET -TABLED TO JUNE 18, 2003 i 6. Tivoli Lodge DR602-0404 George Final review of proposed hotel redevelopment located at 386 Hanson Ranch Road/Lot E, Block 2, Vail Village 5th Filing I Applicant: Bob & Diane Lazier ~ MOTION: Bill Pierce SECOND: David Viele VOTE: 4-0 i APPROVED WITH 2 CONDITIONS: j 1. That the applicant submits a proposed roof material to the Town of Vail community Development Department for the review and approval of the material prior to submitting an application for a building permit. 2. That the applicant submits revised exterior building elevations indicating the design changes highlighted in red on the office copy of plans by the Design Review Board for review and approval of the revisions by staff prior to submitting an application for a building permit. 2 ! TO: Town Council FROM -DATE MEMORANDUM Community Development Department .July 1, 2003 SUBJECT: An .appeal of the Planning and Environmental Commission's decision to approve .with conditions a request for a variance from Section 12-7A-11, Parking and Loading, Vail Town :Code, to allow for parking and loading in the front setback, located at 9 Vail Road/Lot C, Vail Village 2"d Filing. Appellent: Nine Vail Road Condominium Association Planner:. Allison Ochs I. :SUBJECT PROPERTY The subject property is Public Accommodation zoned lot, located at 9 Vail Road /Lot C, Vail Village 2"d,Filing. 'll. STANDING OF THE APPELLENT The appellant, Nine Vail Road Condominium Association, has standing to file the appeal as owners of the subject property. III. REQUIRED ACTION The Town Council shall uphold, overturn, or modify the Planning and Environmental Commission's approval with conditions of the request fora variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, .located at 9 Vail -Road/Lot C, Vail Village 2nd Filing. :Pursuant to Sub-section 12-3-3-C5, Vail Town Code, the Town Council is required to make #indings of fact in accordance with the Vail Town Code: The Town Council shall on all appeals make specific findings of fact based directly on the particular evidence presented to it. These findings of fact must support conclusions that the standards and conditions imposed by the requirements of this title (Zoning Regulations, Title 12) have or have not been met. IV. DESCRIPTION OF REQUEST Nine Vail Road Condominium Association and Nicolet Island Development, Inc., submitted an application for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for four surface parking in the front setback. Section 12-7A-11 states: Off street parking and loading shall be provided in accordance with chapter 10 of this 1 title. At least seventy five percent (75%) of the required parking shall be ,located within the main building or buildings and hidden from .public view. No at grade or above grade surface parking or loading area shall be located in any required front setback area. Below grade underground structured parking and short term guest loading and drop off shall be permitted in the required front setback subject to the approval of the planning and environmental commission and/orthe design review ..board. V. BACKGROUND The Planning and Environmental Commission voted to approve (4-2, 'Schofield and Bernhardt opposed) the request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, with the condition that only two parking spaces and the minimum area required for aturn-around be located in the front setback, while the remaining two spaces be located within the parking structure of the proposed Four Seasons Resort. The staff recommendation was for denial of the variance request. Staff's recommendation of denial was based on :the belief that there were alternative designs which would be less impactful to the neighborhood and to the West Meadow Drive pedestrian experience. Staff believed that a variance was warranted, but not to the degree at which it was requested. A copy of the June 9, 2003, memorandum has been attached for reference {Attachment A). Nine Vail Road Condominium Association has filed an appeal of the Planning and .Environmental Commission's June 9, 2003, decision, which has been attached for reference (Attachment B). Minutes of the June 9, 2003, Planning and Environmental Commission meeting have been attached for reference (Attachment C). VI. CRITERIA AND FINDINGS The staff memorandum of June 9, 2003, outlines the criteria and findings for evaluating a variance request of this nature. The Town Council must review an appeal based on the same criteria and findings that the Planning and Environmental Commission .uses "to evaluate a variance proposal. A. Consideration of Factors Regarding the Setback Variances: 1. The relationship of the requested variance to other existing or potential uses and structures in the vicinity. 2. The degree to which relief from the strict and literal interpretation and enforcement of a specified regulation is necessary to achieve compatibility and uniformity of treatment among sites in the vicinity or to .attain the objectives of this title without a grant of special privilege. 3. The effect of the requested variance on light and air, distribution of population, transportation and traffic facilities, public facilities and utilities, and public safety. 4. Such other factors and criteria as the commission deems applicable to the proposed variance. B. The Planning and Environmental Commission shall make the following findings 2 :before granting a variance: 1. That the granting of the variance will not constitute a grant of special .privilege inconsistent with the .limitations on other properties classified in the same district. 2. That the granting of the variance will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity. 3. That the variance is warranted #or one or more of the following reasons: a. The strict literal interpretation or enforcement of the specified regulation would result in practical difficulty or .unnecessary physical hardship inconsistent with the objectives of this title. b. There are exceptions or extraordinary .circumstances or conditions applicable to the same site of the variance that do not apply generally to other properties in the same zone. c. The strict interpretation or enforcement of the specified regulation would deprive the applicant of privileges enjoyed by the owners of other properties in the same district. VI. STAFF RECOMMENDATION The Community Development Department recommends that the Town Council upholds the Planning and:'Environmental Commission's approval with conditions of the ,request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allowfor parking and oading 'in the front setback, located at Nine Vail Road/Lot C, Vail Village 2"d Filing: Should the Town Council choose to uphold the decision of the Planning and Environmental Commission, staff recommends the following findings: 1. That the standards and conditions imposed by the requirements of this Title have been ..met in the Planning and Environmental Commission action on this variance request. 2. That the granting of the variance wilt not constitute a grant of special privilege inconsistent with the limitations on other properties classified in the same district. 3. That the .granting of the variance will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity. 4. That the variance is warranted for one or more of the following reasons: a. The strict literal interpretation or enforcement of the specified regulation would result in practical difficulty or unnecessary physical 3 hardship inconsistent with the objectives of this title. b. There are exceptions or extraordinary circumstances or conditions applicable to the same site of the variance that do not apply generally to other properties in the same zone. c. The strict interpretation or enforcement of the specified regulation would deprive the applicant of privileges enjoyed by the owners of other properties in the same district. In addition to the findings above, staff recommends that the Town Council uphold the conditions of the Planning and Environmental Commission. Specifically, staff recommends the following conditions: That prior to application for a building permit, the applicant must return to the Design Review Board for final review and approval of all improvements. 2. That the applicant shall revise the plans, subject to Design Review Board .review-and approval, to indicate 2 surface parking spaces and the minimum .area required for a functional turnaround within the front setback, adjacent to West Meadow Drive. The remaining 2 spaces shall be provided in the structure of the Four Seasons Resort. X. ATTACHMENTS A. Planning and Environmental Commission Memorandum of June 9, 2003 B. Appeals Form, received June 11, 2003 C. Planning and Environmental Commission Minutes of June 9, 2003 4 MEMORANDUM ~ ~ J ~ ~ ~(~ 1 t TO: Planning and Environmental Commission FROM: .Community Development .Department :DATE: June 9, 2003 SUBJECT: A request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the :front setback, located at 9 Vail Road/Lot C, Vail Village 2~d Filing. Applicant: Nine Vail Road Condominium Association and Nicolet Island Development, Inc. .Planner: Allison Ochs .SUMMARY The applicants, Nine Vail Road Condominium Association and Nicolet Island Development, Inc., have requested a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at 9 Vail Road/Lot C, Vail Village 2~d Filing. Staff is recommending denial of the request, subject to the criteria and finding, outlined in Sections VIII and IX of this memorandum. DESCRIPTION OF REQUEST 'Nine Vail Road Condominium Association and Nicolet Island Development, lnc., have requested this variance from Section 12-7A-11, :Parking and Loading, Vail Town Code, to allow `for parking in the front setback. The applicants' statement of request has been attached for reference (Attachment A). Section 12-7A-11 states: Off street parking and loading shall be provided in accordance with chapter 10 of this title. At least seventy five percent (75%) of the required parking shall be located within the main building or buildings and hidden from public view. No at grade or above grade surface parking or loading area shall be located in any required front setback area. Below grade underground structured parking and short term guest loading and drop off shall be permitted in the required front setback subject to the approval of the planning and environmental commission and/or the design review board. The application is in response to the proposed Four Seasons Resort development. The current access to four surface .parking spaces is located on the Four Seasons Resort property. As part of the development application, the current access is proposed to be removed and the parking for Nine Vail Road relocated to West Meadow Drive. A vicinity map is attached for reference (Attachment B). As Nine Vail Road is currently non- conforming with regards to the number of required parking spaces, these .parking spaces cannot be eliminated. Chapter 12-10, Off-street Parking and Loading, Vail Town Code would require 38 parking spaces. However, there are currently 31 spaces provided for Nine 1 Attachment: A Vail ..Road. Three of the .proposed parking spaces would be located in the required 20 ft. front setback. Section 12-2-2, Definitions, Vail Town Code, provides the following definition fora "front`lot or site line": The boundary line of a lot or site adjoining a street which provides the primary access or street address of the site, or adjoining the primary access from a street to the lot or site. As a result, Nine Vail Road, according to the Zoning Regulations, has two front property lines: adjacent to Vail Road and adjacent to West Meadow Drive. As a result, there are two front setbacks for Nine Vail .Road. Therefore, a variance is required to locate any surface parking in the area proposed. Reductions of the plans have been attached for reference (Attachment C). III. BACKGROUND Information regarding the original construction of Nine Vail Road is limited. According to the legal file with the Town of Vail Community Development Department, construction of Nine Vail Road, originally called the Holiday House, occurred in the early 1970s. Since that time, development activities on the site have been limited to minor exterior alterations. IV. ROLES OF REVIEWING BODIES Planning and Environmental Commission: The PEC is responsible for evaluating a proposal for: Action: The PEC is responsible for final approval/denial of a variance. The 'PEC is responsible for evaluating a proposal for: 1. The relationship of the requested variance to other existing or potential uses and structures in the vicinity. 2. The degree to which relief from the strict or literal interpretation and enforcement of a specified regulation is necessary to achieve compatibility and uniformity of treatment among sites in the vicinity, or to attain the objectives of this Title without grant of special privilege. 3. The effect of the requested variance on light and air, distribution of population, transportation and traffic facilities, public facilities and utilities, and public safety. 4. Such other factors and criteria as the Commission deems applicable to the proposed variance. Design Review Board: Action: The DRB has NO review authority on a variance, but must review any accompanying DRB application. 2 Town Council: Actions of DRB or PEC maybe appealed to the Town Council or by the Town Council. Town Council evaluates whether or not the PEC or DRB erred with approvals or denials and can uphold, uphold with modifications, or overturn the board's decision. Staff: The staff is responsible for ensuring that all submittal requirements are provided and plans conform to the technical requirements of the Zoning Regulations. The staff also advises the applicant as to compliance with the design guidelines. Staff provides a staff memo containing background on the property and provides a staff evaluation of the project with respect to the required criteria and findings, and a recommendation on approval, approval with conditions, or denial. Staff also #acilitates the review process. V. APPLICABLE PLANNING DOCUMENTS Zoning Regulations 12-7A-11: PARKING AND LOADING: Off street parking and loading shall be provided in accordance with chapter 10 of this title. At least seventy five percent (75%) of the required parking shall be located within the main building or buildings and hidden from public view. No at grade or above grade surface parking or loading area shall be located in any required front setback area. Below grade underground structured parking and short term guest loading and drop off shall be permitted in the required front setback subject to the approval of the planning and environmental commission and/or the design review board. Section 12-17 Variances (in part) 12-17-1: PURPOSE: A. Reasons For Seeking Variance: In order to prevent or to lessen such practical difficulties and unnecessary physical hardships inconsistent-with the objectives of this title as would result from strict or literal interpretation and enforcement, variances from certain regulations may be .granted. A practical difficulty or unnecessary physical hardship may result from the size, shape, or dimensions of a site or the location of existing structures thereon; from topographic or physical conditions on the site or in the immediate vicinity; or from other physical limitations, street locations or conditions in the immediate vicinity. Cost or inconvenience to the applicant of strict or literal compliance with a regulation shall not be a reason for granting a variance. 12-17-5: PLANNING AND ENVIRONMENTAL COMMISSION ACTION: Within twenty (20) days of the closing of a public hearing on a variance application, the planning and environmental commission shall act on the application. The commission may approve the application as submitted or may approve the application subject to such modifications or conditions as it deems necessary to accomplish the purposes of this title, or the commission may deny the application. A variance maybe revocable, maybe granted for a limited time period, or maybe granted subject to such other conditions as the commission may prescribe. 3 12-17-7: PERMIT APPROVAL AND EFFECT: Approval of the variance shall lapse and become void if a building permit is :not obtained and construction not commenced and diligently pursued toward completion within two (2) years from when the approval becomes final. Streetscape Master Plan PRELIMINARY CONCEPTS The preliminary concepts for West Meadow Drive Focused on defining the existing .pedestrian circulation patterns. This need to define the pedestrian circulation system led to the development of the following preliminary concepts. • Use different paving treatments to create in-streetpedestrian paths at the roadway level. This concept builds on the idea that part of the charm and fun of Vail is the ability to walk in the street. A street-level walk system is easier to maintain, but it was felt that the high volume of cars, buses and trucks using West Meadow Drive would create street-level pedestrian paths that would appear to create an even wider road without providing pedestrian safety. To construct sidewalks of equal width on both sides of the street. Since this is the pattern that most people are familiar with, it would be user friendly, but would result in relatively narrow walkways and increased pedestrians walking behind parked cars. In addition, it was felt that this system would do little to break up the monotony of the street. It was obvious from the first design study that all of the proposed options for the streetscape improvement would need to leave the existing vehicular circulation patterns intact. This was due to the number of private homes on the street and the need to maintain adequate access for Town buses and emergency vehicles. PREFERRED STREETSCAPE PLAN The concept that received the broadest public support was to create a primary pedestrian path (10'-12' wide) on one side of the street and a smaller sidewalk (5' wide) on the other. The primary pedestrian path crosses from the north to the south side and then back again, to avoid the head-in parking. Curb and gutter would be used to define the street which has been narrowed to the minimum width of 26; curb-to-curb. Design Concept: Early on, it was recognized that, in Vail, people enjoy walking in the street. Because of safety concerns along West Meadow Drive, it became essential to create a separation between the pedestrians and vehicular traffic. The concept is to, in essence, create a new pedestrian street that is designed in such a way that it will be a more exciting pedestrian space than the existing asphalt street. The design calls fro intense planting along the "pedestrian street" to bring back the landscape character which still exists immediately adjacent to Gore Creek. This approach will also carry the landscape design 4 heme from West Meadow Drive through to East Lionshead Circle to strengthen the connection between Lionshead and the Village. A second design concept is to add to the pedestrian experience by creating an "artwalk" along this corridor. This idea will also compliment he :existing .artwork located on east Lionshead Circle. The intent is to involve artists and the neighborhood residents in the final design of the `artwalk"to allow forsite specific art pieces. The pedestrian street character is illustrated in :Figure 7. The final plan, illustrated in figure 6, includes a number of unique features: • All pedestrian paths be constructed with concrete unit pavers to clearly distinguish them from the roadway. The primary pedestrian path maybe a different color and/or style of unit paver than the minor walkway. Having a walkway width of 10' to 12' was thought to be important to allow groups of people to walk comfortably on the path (Figure 8). The width of the primary pedestrian path also makes it possible for the path to be plowed by a small truck or tractor. If this separated pedestrian system is to be successful in keeping pedestrians out of the roadway, it must be kept clear of snow throughout the winter. • A `pedestrian priority crosswalk" has been planned near the Holiday Inn where the path crosses to the south to avoid head-in parking at the Skaal House and the Alphorn. This raised crosswalk keeps the pedestrian path at the same level as it crosses the street. The traffic is carried over the walkway by gently sloping ramps. Not only does this type of crosswalk give the pedestrian priority; it provides visual interest while slowing traffic. Design consideration should be given to maintenance and snow-plowing needs. • Seating is provided at regular intervals and at bus stops. Opportunities for public art should also be considered at these points. The seating must be designed with careful attention to location, views, landscaping, etc., to insure the seating will be used. A neighborhood entry feature has been designed at the beginning of West Meadow Drive, near the fire station, to act as a psychological deterrent to unnecessary vehicular traffic. The fire station apron provides an opportunity for these cars to turn around. While this treatment will only discourage the lost visitor from continuing west on Meadow Drive, it was felt to be a reasonable compromise between acard-activated gate or manned control gate. The Plan calls for extensive right-of--way landscaping to soften the corridor and reflect the landscape character of nearby Gore Creek. The landscaping should be used to add as much visual interest and natural character to the sidewalk and seating areas as possible. Dense plantings are proposed to create a sense of enclosure for this pedestrian corridor. Some landscaping on private property will be necessary to 5 achieve this effect. Additionally, plantershave been proposed east of the :fire station to help define the roadway and reduce the amount of asphalt. VI. ZONING ANALYSIS Zoning: 'Land Use Plan Designation Current Land Use: Development Standard Lot Area: Setbacks: front (Vail Road): 20 ft. 17 ft. no change Front (W. Meadow): 20 ft. 12 it. no change Sides: 20 ft. 2 ft. no change Rear: 20 ft. 12 ft. no change Density: 16 du 27 du* no change "This property is nonconforming with regards to use as there are no au's. Landscape Area: 8,504 sq. ft. (30%) 11,368 sq. ft. (40%) 11,160 sq. ft. (39%) Hardscape Area: 1,701 sq. ft. (20%) 1,700 sq. ft. (15%) 1,428sq.ft(13%) Parking: 38 spaces 31 spaces no change Public Accommodation Transition Area Residential Allowed/Required Existin Proposed 10,000 sq. ft. 28,346 sq. ft. no change VII. SURROUNDING LAND USES AND ZONING Land Use Zoning North: Mixed Use SDD #36 w/ Public Accommodation South: Mixed Use Public Accornrnodation Fire Station General 'Use East: Mixed Use SDD #6 w/ Public Accommodation West: Mixed Use SDD #36 w/ Public Accommodation VI11. CRITERIA AND FINDINGS A. Consideration of Factors Regarding the Setback Variances: 1. The relationship of the requested variance to other existing or potential uses and structures in the vicinity. Staff believes that adding parking in the front setback will negatively impact the West Meadow Drive streetscape by allowing parking to be within 1 ft. of the front property line and 21 ft. of the edge of pavement. The proposed streetscape plan for West Meadow Drive encourages significant landscaping in the right-of-way and on private property, where necessary. As proposed, staff does not believe thereto be adequate area for landscaping. While staff supports the idea of additional site walls to screen the surface parking area, the proposed walls also limit the opportunity for significant landscaping (i.e. large spruce trees.) The Design Review Board conceptually reviewed the associated Design Review application at their May 21, 2003, and June 4, 2003, hearings. The Design .Review Board felt that other options should be explored in the design of the parking area. Specifically, they -felt that locating additional parking along West Meadow Drive would .negatively impact the pedestrian experience. The Design Review Board expressed great concern that there would .not be adequate landscape buffering area to screen the proposed surface parking. Title 14, Vail Town Code, states (in part): .Particular attention shall be given the landscape design ofoff-street parking lots to reduce adverse impacts upon living areas within the proposed development, upon adjacent properties, and upon public spaces with regard to noise, lights, and visual impact. At the June 4, 2003, Design Review Board hearing, the applicants presented a design which included 6 ft. site walls. The Title 14, Vial Town Code, states, in part: Fences, hedges, walls, and landscaping screens shall not exceed 3 ft. in height within any required front setback area, and shall not exceed 6 ft. in height in any other portion of the site, provided that higher fences, hedges, walls, or landscaping screens may be authorized by the Administrator when necessary to screen public utility equipment. A variance would be required for any wall in excess of 3 ft. in the setback. Staff believes that there are other opportunities #or the applicants which will not negatively impact the pedestrian experience along West Meadow Drive. Staff believes that there may be alternative designs which, while still requiring a variance, would minimize the impacts to West Meadow Drive. 2. The degree to which relief from the strict and literal interpretation and enforcement of a specified regulation is necessary to achieve compatibility and uniformity of treatment among sites in the vicinity or to attain the objectives of this title without a grant of special privilege. Many of the properties along West Meadow Drive currently have parking in the front setback and in the right-of-way, including the Alphorn, and the Skaal Haus. Both of these properties are residential uses, and are zoned High Density Multiple Family zone district. In addition, the First Bank of Vail, which is zoned Public Accommodation, also has parking located within the front setback. Finally, the Vail Fire Station, zoned General Use, also has parking located within the front setback and the right-of-way. All of these properties are existing non-conforming with regards to parking space location. These existing non-conformities have had negative impacts to the West Meadow Drive streetscape. Photos of the above-mentioned properties have been 7 attached for reference (Attachment D). Staff believes that the granting of this variance would be a grant special privilege as there are other options that-exist for this property which would not require a variance of this nature. The .proposed Four Seasons Resort has excess parking capacity in the proposed structure, which could 'be allocated to Nine Vail Road to replace the 4 surface parking spaces. ':In addition, staff believes that there are alternative designs which staff believes could be appropriate which would still require avariance. -For example, staff believes that locating 2 parking spaces and the minimum area required fora turnaround in the front setback would allow for significant landscaping which would successfully screen the parking. The remaining 2 spaces could'be 'located within the Four Seasons parking structure. While-this optionwould still require a variance, staff believes that it would be the minimum deviation necessary without a grant of special privilege. 3. The effect of the requested variance on light and air, distribution of population, transportation and traffic facilities, public facilities and utilities, and public safety. Staff believes that there will be no negative impact on light and air, distribution of population, public facilities and utilities, and public safety. Staff believes that the elimination of the curb cut on Vail Road will positively impact the transportation and traffic facilities on Vail Road. The parking area adjacent to West Meadow Drive has been designed to accommodate a forward motion for exiting, thus minimizing the impacts to West Meadow Drive. However, the proposed parking spaces will add vehicular trips to West Meadow Drive, which staff believes to be a negative impact to transportation and traffic facilities. 4. Such other factors and criteria as the commission deems applicable to the proposed variance. Staff believes that other options exist which would minimize or eliminate the need for a variance. Specifically, the parking could be relocated within the proposed Four Seasons parking structure. The Design Review Board conceptually reviewed the proposal to relocate the parking at the May 21, 2003, and June 4, 2003, hearings. The Design Review Board was split in their opinion of the proposal. Some members felt that with adequate landscaping and site walls, the proposal could improve the experience along West Meadow Drive and successfully tie in with the proposed West Meadow Drive streetscape improvements. Other members stated that adding surface parking in the front setback would be detrimental to the Town of Vail and did not believe that there would be adequate room to screen the parking area. B. The Planning and Environmental Commission shall make the following findings before granting a variance: 8 1. That thegranting of the variance will not constitute a grant of special .privilege inconsistent with the limitations on other properties classified in the same district. 2. That the granting of the variance will not be detrimental to the public `health, safety or welfare, or materially injurious to properties or improvements in the vicinity. 3. That the variance is .warranted for one or more of the :following reasons: a. The strict literal interpretation or enforcement of the specified regulation would result in :practical .difficulty or unnecessary physical hardship inconsistent with the objectives of this title. b. There are exceptions or extraordinary .circumstances or conditions applicable to the same site of the variance that do not apply generally to other properties in the same zone. c. The strict interpretation or enforcement of the specified regulation would deprive the applicant of privileges enjoyed by the owners of other properties in the same district. 1X. STAFF'RECOMMENDATION The Community Development Department recommends denial of the request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at Nine Vail Road/Lot C, Vail Village 2~d filing. Staff's recommendation is'based upon the review of the criteria in Section VIII of this memorandum and the evidence and testimony presented. Should the 'Planning and Environmental Commission choose to deny this variance, the Community Development Department recommends that the following finding be made: That the granting of the variance will constitute a grant of special .privilege inconsistent with the limitations on other properties classified in the same district. 2. That the granting of the variance will be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity. 3. The strict literal interpretation or enforcement of the specified regulation would not result in practical difficulty or unnecessary physical hardship inconsistent with the objectives of this title. Should the Planning and Environmental Commission choose to approve the variance, staff recommends the following condition: That prior to application for a building permit, the applicant must return to the Design Review Board for final review and approval of all improvements. 9 2. That the applicant shall revise the plans, subject to Design Review 'Board review and approval, #o indicate 2 surfaceparking spaces and the minimum area required for a functional turnaround within the front setback, adjacent to West Meadow Drive. X. ATTACHMENTS A. Applicant's Statement of Request B. Vicinity Map C. Reductions of Plans 'D. Photos of Adjacent Properties E. Publication Notice 10 Attachment: A Z E H R E N AND ASSOCIATES, INC. May 9, 2003 Allison Ochs Department of Community Development Town of Vail Department of Community Development 75 South Frontage Road Vail, Colorado 81657 Re: Nine Vail Road Variance Application Allison: This letter is to describe the nature of the variance requested and the specific explanation of why the variance is required and why the strict or literal interpretation of the specific regulation would result in a physical hardship or practical difficulty. Additionally, it is the intent of this letter to address items a. through d. as described in the application submittal requirements. The requested variance is an exception from Section 12- 7A-11 of the Vail Town Code excluding parking and loading from required front setback areas. Nine Vail Road Condominium Association currently has twenty-seven indoor parking spaces accessed from West Meadow Drive and four outdoor spaces accessed from the adjacent Chateau Vail site. No legal easement exists for vehicular access to these outdoor spaces rendering the parking unusable. Reasonable Engineering practice .would not allow for access to the existing spaces within the current property boundaries along Vail Road. A strict or literal interpretation of the specific regulation would result in either: 1. A further reduction of deficient parking standards on this site through elimination of the four spaces or; 2. Allowing the four spaces to be located within a front setback along West Meadow Drive as identified by town staff. Items a. through d. of the application submittal requirements: a. The relationship of the requested variance to other existing or potential uses and structures in the vicinity. The requested variance would have no effect on existing or potential uses and structures in the vicinity because it would utilize and existing curb cut and driveway on West Meadow Drive. * ARCHITECTURE PLANNING • INTERIORS • LANDSCAPE ARCHITECTURE P.O. Box 1976 • Avon, Colorado 81620 • (970) 949-0257 • FAX (970) 949-1080 • e-mail: vailoffc@zehren.com • www.zehren.com Zehren and Associates, Inc Nine Vail Road 5/12/2003. 20021471.01 Variance Criteria b. The degree to which relief or from the strict or literal interpretation and enforcement of a specified regulation is necessary to achieve compatibility and uniformity of treatment among sites in the vicinity or to attain the objectives of this title without grant of special privilege. Relief from the strict or literal interpretation and enforcement of a specified regulation would be necessary to achieve compatibility and uniformity of treatment among sites in the vicinity. Other sites within the vicinity that curreiztly allow for parking within the front setback area in violation of the zoning code are the Vail Fire Station, Vail Village Inn, Alphorn Condominium, Skaal Haus Condominium, and Meadow Vail Place Condominium. The effect of the variance on light and air, distribution of population, transportation, traffic, facilities, utilities, and public safety. There would be no effect on light and air, distribution of population, transportation, facilities, or utilities. The effects of the variance on traffic and public safety would be beneficial in that an existing curb cut, driveway, and intersection would be eliminated from Vail Road; a higher speed, higher capacity thoroughfare. d. How the request complies with the adopted Town of Vail planning policies and development objectives. The request complies with the adopted planning polices and development objectives in that it would provide for: • Public improvements on Vail Road funded with private money. • Increased vehicular and pedestrian safety along Vail Road. • Integration of public and private streetscape improvements along West Meadow Drive. • Neither an increase nor decrease in compliance with adopted parking standards (required number of spaces). Please do not hesitate to contact me with any questions or ,concerns regarding the information presented. Additionally, if you need any additional information, please do not hesitate to contact me. Sincerely, T 1- Timothy R. Losa, A.I.A. Senior Associate Zehren & Associates, Inc. .... _. ~~ ,t~. _' _ ® 4 .~.' "~iu, i -i. ,.. ~.~ .~,~^' i Yl > _.,.e~ ~ ~~n y ~ ~ ~p[~Fl, t •d.; ~_:.d'r S7Fh~A ~ ,.,~4~~t,~y t qy r~^~.`"~ ~-` i} _ ac~ w+ ~_, ~" _. J.-_ i ;.i., sa ^'~._ '~i~ t'r:~ r ~-.~r~~.~ Eb ",~ y h~~H. 5~ ~-lk aqt ~.. 'dE` '~.~,~r' ..,~'t«~~ ~~~;~€~c-, ti}. 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S - -, ~ , __ _ - ::1 i ~`.~ ~"~, ~~ :,S Attachmerrte ~ Jail Jateway Plaza Condominium assn O Box 19157 Avon, CO 81620 JAB Investment Inc i/b/a Holiday Inn Chateau Vail O Box 11939 Denver, CO 80211-0939 ?yman, Sylvia Rebeca c/o Johnson, 3rown & Speigel Attn: Brenda Brown i00 Bishop St AS Atlanta, GA 30318 tillage Inn Place -Phase V condominium Assn .00 E Meadow Dr Jail, CO 81657 3S Condominium Assn .0403 W Colfax Ave .akewood, CO 80215 JVIP 502 X603 Annaway Dr :ding, MN 55436 Jilla Cortina Condominium Assn ' O Box 1012 Jail, CO 81658 /Ieadow Vail Place Condominium assn -4 W Meadow Dr Jail, CO 81657 Jico Vail Inc /o Slifer Mgmt 43 E Meadow Dr Ste 360 Lail, CO 81657 )sakis LLC /o Watson & Co Inc 0670 E Bethany Dr Bldg 4 ,urora, CO 80014 Village Inn Place -Phase III Condominium Assn 100 E Meadow Dr Vail, CO 81657 Moellentine Land Co LLC 461 Fifth Street New. York, NY 10017 Gary A. Syman - Azita Raj Family Trust 27 Windward Rd Belvedere, CA-94920 Jim Lamont ' . Vail: Village HOA POBox73 Recliff, CO '81649 Gail M. & Stephen R: Rineberg 7475. Gainey Ranch Rd 9E Scottsdale, AZ 85258' Staufer Commercial LLC 100 E Meadow Dr Vail, CO 81657 Sonnenalp Properties Inc 20 Vail Rd Vail, CO 81657 Daymer Corp NV 100 E Meadow Dr Vail, CO 81657 Claggett/Rey Gallery LLC 100 E Meadow Dr Vail, CO 81657 Hanlon Family Partnership 385 Gore Creek Dr Vail, CO 81657 Village Inn Place - Phase IV Condominium Assn 100 E Meadow Dr Vail, CO 81657 Vail Fire Protection District Vail, CO 81657 Vail Village Inn Plaza Condominium Assn 143 E Meadows Dr Vail, CO 81657 Beaver Road Inc c/o Vail Realty & Rental Mgmt 302 E Gore Creek Dr Vail, CO 81657 Edna N. & Claus W. Fricke P O Box 1557 Eagle, CO 81631-1557 Vail Corp POBox7 Vail, CO 81658 Vail 108 Ltd c/o Westar Bank Ad~nin Center P O Box 1210 Gypsum, CO 81637 Masters Gallery At Vail LLC 70 S :Potomac St Aurora, CO 80012 Red Sands Corp c/o Vail. Home Rentals Inc 143 E Meadow. Dr Ste 397 Vail, CO 81657 Robert M. Euwer & Barbara D Euwer Revocable Trust 7528 E Gallup St Littleton, CO 80120 Maureen T. O Dea 16450 W Sunset Blvd 302 Pacific Palisades, CA 90272 Linda C. Dickinson Qualified Personal Residence Trust 9200 Hollyoak Dr Bethesda, MD 20814 David G. & Cathy L. Crane c/o D.G. Crane 2485 Broadway San Francisco, CA 94115 Thomas F. Sheridan, Vincent D. Walsh 1808 Swann St NW Washington, DC 20009 Ponch Inc -Trio Inc c/o Jefferson P Knoght PA 777 Bricknell Ave #1070 Miami, FL 33131 Eugene, Jr & Sue B. Mercy 1111 Park Ave New York, NY 10128 Vai144 Corp 44 Meadow Dr 44 Vail, CO 81657 Obeying Irrevocable Trust 5251 DTC Parkway 425 Greenwood Village, CO 80111 William A. & Ronnie N. Potter 1130 Park Ave New York, NY 10128 William W. Graham 11661 San Vincente Blvd 401 Los Angeles, CA 90049 Luis P. & Huguette D. Bustamante c/o Vail Realty & Rental Mgmt 302 Hanson Ranch Rd Vail, CO 81657 Margaret T. Fuller 5123 S Perry Cir Littleton, CO 80123 RL Exempt Corp c/o Frederick S. Otto POBox3149 Vail, CO 81658 Charlene Caruso Revocable Living JAF Industrial Dev Trust P O Box 6688 2428 N 12th Ct Somerset, NJ 08875-6688 Ft Lauderdale, FL 33304 Judith & Joel Baker 20 Dolma Rd Scarsdale, NY 10583 Seviher Corp c/o Burke Mgmt P O Box 2631 Vail, CO 81658 James W. & Ellen V. Pinkard 3440 Youngfield St Ste 351 Wheat Ridge, CO 80033 Pericles Realty Inc c/o Otto Peterson & Post POBox3149 Vail, CO 81658 Spraddle Creek Properties Inc. c/o James B. Newman 150 Government St Ste 2000 Mobile, AL 36602 Hilda O. Farrill Avila Meadow Place Inc Attn: B. Brandon c/o Invicta America Attn: Suzette Ansbacher House Jennet St P O Box 551600 George Town Grand Cayman Ft Lauderdale, FL 33355 Cayman Islands BWI Pericles Realty Inc David William Hanna Trustee 44 W Meadow Dr c/o Hanna Capital Management, Inc Vail, CO 81657 620 Newport Center Dr Ste 500 Newport Beach, CA 92660 William & Ann F. Loper 22 W Meadow Dr 360 Vail, CO 81657 Michael S. & Iris Smith 2 Sedwick Dr Englewood,. CO 80110 Richard T Liebhaber and Kirsten E Liebhaber Personal Res. Trust P O Box 8210 McLean, VA 22106-8210 Meek Family Trust John F. & Jerris P. Ferguson, Terry O. Meek 5326 Clayhill Dr Springfield, MO 65804 575M LLC 18 Springfield Ln Sarasota Springs, NY 12866 JaiLSundial LP ./o Russell Standard 'OBox479 3ridgeville, PA 15017 Jail Gateway LLC World Financial Center 2th FL few York, NY 10285-1200 Jail PBK LLC •92 Mill Creek Cir Jail, CO 81657 amen R. & Karen W. Johnson 9 Churchill Rd 'ittsburgh, PA 15235 )iane Gamel Lighthall X293 W Oberlin Dr )enver, CO 80235 White River Acquisition Corp c/o Manuel Martinez WW Leo Palmas Consulting Group 2775 Iris Ave 905 Bricknell Bay Dr Ste 230 Boulder, CO 80304 Miami, FL 33131 Whitebay Marketing Ltd c/o George D. Perlman Holland & Knight 701 Bricknell Ave Ste 3000 Miami, F133131 Timberline Commercial Holdings LLC 12 Vail Rd 600 Vail, CO 81657 GGG LLC P O Box 5963 Vail, CO 81658 Vail Gateway Plaza 12 Vail Rd Ste 600 Vail, CO 81657 Meadow Drive Ventures Inc P O Box 2767 Mobile, A136652 Karin Wagner Revocable Inter aaus W. Fricke Revocable Trust Vivos Trust 'sdna N. Fricke Revocable Trust Karin Wagner Trustee ' O Box 1557 405 Bontona Ave :agle, CO 81631-1557 Ft Lauderdale, FL 33301 sylvan M. & Frances Tobin Ol Cheswold Ln 5-D Iaverford, PA 19041 Daymer Corp NV 950 Red Sandstone Rd 26 Vail, CO 81657 :rnest III & Lisa Jane Scheller 51 Benner Rd Allentown, PA 18104 'Villiam P. & Lynda B. Johnson 75 Inca Parkway toulder, CO 80303 ~ilvia Ito de Zaragoza ' O Box 220349 1 Paso, TX 79913 Carol G. Jones trustee 268 Litchford CT St Louis, MO 63141 Michael P. & Patricia J. Glinsky 3200 Cherry Creek S Dr Ste 230 Denver, CO 80209 Gary J. & Dorothy Farrell Cordes 2B Trentino Rd, Turranurra 2074 NSW Australia Kilmur LLC P O Box 596.3 Vail, CO 81658 Vail Village Inn Inc 100 E Meadow Dr 33 Vail, CO 81657 Patricia Ann Gabriel POBox268 Paramus, NJ 07653-0268 Staufer Commercial LLC 100 E Meadow Dr 31 Vail, CO 81657 Marvin J. & Karole A. Frank 2430 N Orchard Chicago, IL 60614 Guiseppe & Mercedes Cecchi 1700 Moore St Ste 2020 Arlington, VA 22209 Vail Village Inn Associates c/o Copperthwaite & Co POBox61349 Denver, CO 80206 302 VVI Inc c/o Fred Otto -Otto Peterson & Post POBox3149 Vail, CO 81658 Barbara Weinstein A.J. Property Trust Michael J. Zaremba 78 Joyce Rd c/o Dreyer Edmonds & Assoc. 6200 Plymouth Ct Plainview, NY 11803 355 S Grand Ave Ste 4150 Downers Grove, IL 60516 Los Angeles, CA 90071-3103 Richard T. Liebhaber 4725 Ltd Oliver M. & Diana L. Kearney P O Box 8210 7565 Spanish Bay Dr McLean, VA 22106-8210 80 W 78th St Ste 133 Las Vegas, NV 89113 Chanhassen, MN 55317 Kirk D. Huffard Chris J. & Jennifer A. Anderson 8 Maher Ave Daymer Corp NV 103 Anemone Dr Greenwich, CT 06830-5617 100 E Meadow Dr Boulder, CO 80302 Vai, CO 81657 Patricia Ann Gabriel Paul A. & Penelope N. Leseur John & Rebecca Moore 1 E Ridgewood Ave' Somerset Bridge, Sandys SBBX p O Box 728 Paramus, NJ 07653 P O Box SB90 Del Mar, CA 92024-0728 Bermuda Staufer Commercial LLC Town of Vail James E. & Jeanne Gustafson 100 E Meadow Dr c/o Finance Dept P O Box 5010 -- Vail, CO 81657 75 S Frontage Rd Norwalk, CT 06856 Vail, CO 81657 Colando CO Alexander Family Trust Floyd L. & Elaine E. English Priv Antonio Chedraui S/N Judy Lynne Alexander Trustee 571 Millbrook Dr Col Encina191180 Xalapa Veracruz 2121 N Frontage Rd W Ste 254 Downers Grove, IL 60516 Mexico Vail, CO 81657 Barbara & Charles Dillman S.C. Geroca Lario Inc 18316 Mainsail Pointe 100 E Meadow Dr 101 ~ c/o Vail Village Inn Cornelius, NC 28031 Vail, CO 81657 100 E Meadow Dr Vail, CO 81657 Red Sands Corp Kinney L. Johnson Lublan S.A. c/o Vail Home Rentals Inc 1100 Hornsilver Cir c/o Banco International SA 143 E Meadow Dr Ste 397 Vail, CO 81657 437 Madison Ave 17th Fl Vail, CO 81657 New York, NY 10022 Raymond J & Mealnie Rutter Charles M. Harmon, Jr. -Traditions Family UDT Enchanted Mesa Exempt Corp LP Raymond J Rutter Trustee c/o Frederick S. Otto 11380 Long Meadow Dr 760 Via Lido Nord P O Box 3149 W Palm Beach, FL 33414 Newport Beach, CA 92663 Vail, CO 81658 Bede Ltd c/o Bustamante, Luis Pedro A. & Adelaida Petunia Douglas Deane Hall, Jr. Pablo Ramirez 2000E 12th Avenue Priv. San Isadro 44 Cond. Caparra Classic Ph-2 Box 4 Col. Reform Social, Del Miguel 105 Ortegon Ave Denver, CO 80206 11650 Mexico DF Guaynabo PR 00966 Jerardo Schroeder Gonzalez - DE 'atricia Inzunza Schroeder ~ 1 Tunapuna Ln :oronado, CA 92118 Zoger L. Reisher ;400 Cherry Creek S Dr #405 Denver, CO 80209-3258 ~huck Lipcon one Biscayne Tower >uite 2480 Miami, FL 33131 A.J. Property Trust c/o Dreyer Edmonds & Assoc 355 S Grand Ave Ste 4150 Los Angeles, CA 90071-3103 Jeff Moellentine Alpine Standard 28 S Frontage Rd Vail, CO 81657 Firstbank of Vail 17 Vail Rd Vail, CO 81657 Charles Lipcon 430 N Marshra Dr Key Biscayne, FL 33149 THIS ITEM MAY AFFECT YOUR PROPERTY PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the Planning and Environmental Commission of the Town of Vail will hold a public hearing in accordance with Section 12-3-6 of the Vail Town Code on June 9, 2003, at 2:00 P.M. in the Town of Vail Municipal Building. In consideration of: A request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at 9 Vail Road/Lot C, Vail Village 2"d Filing. Applicant: Nine Vail Road Condominium Association and Nicolet Island Development, Inc. Planner: Allison Ochs A request for a conditional use permit, to allow for a seasonal use to accommodate an educational, recreational, and cultural use, located at 530 S. Frontage Road/Ford Park, Unplatted. Applicant: Town of Vail/AIPP, represented by Braun Associates, Inc. Planner: Allison Ochs A request for a conditional use permit, pursuant to Section 12-7H-5, Conditional Uses, Vail Town Code, to allow for a private outdoor recreational facility, located at 600 Lionshead Mall/Tract D, Vail Lionshead 1S' Filing. Applicant: Vail Resorts Planner: Bill Gibson A request for a recommendation to the Vail Town Council to amend the Town of Vail Streetscape Master Plan and setting forth details in regard thereto. Applicant: Town of Vail, represented by Greg Hall Planner: Warren Campbell The applications and information about these proposals are available for public inspection during regular business hours at the Town of Vail Community Development Department office, 75 South Frontage Road. The public is invited to attend the project orientation held in the Town of Vail Community Development Department office and the site visits that precede the public hearing. Please call (970) 479-2138 for additional information. Sign language interpretation is available upon request with 24-hour notification. Please call (970) 479-2356, Telephone for the Hearing Impaired, for additional information. This notice published in the Vail Daily on May 23, 2003. o-~~~ / ~ 1 ,. TOYVN OF PAIL ~i' ~' ~ ~~ Appeals Form ;a ~' T~~r~ ~,~~ Department of Community Development TOVV(Y OF VAIL'` ~ 75 South Frontage Road, Vail, Colorado 81657 te1:970.479.2139 fax: 970.479.2452 web: www.ci.vail:co.us General Information: This form is required for filing an appeal of a Staff, Design Review Board, or Planning and Environmental Commission action/decision. A complete form and associated requirements must be submitted to the Community Development Department within ten (10) business days of the disputed action/decision. Action/Decision being appealed: ~~ ~ `~~ ~ ~ sio nJ ~ /~-PP,2 0 ~~ S~^QFG ~~ eadnn £.u air ~~ ~ Z ~2 € (,c~c~r TF Fa u2 ~i~-~I ~G' ~A-e£s C' v~.,e~.v7'L ~o~TFa o,J q ~~~~ 20,~1~ 0°.2vPeoe ~ ~y ,~cG.aC~r~.~ ~' 02 sP~ces ati S~-%~ ~ SPi9~E5 OGF-S>~ vxJ ~J~ S'e,45a.~s Date of Action/Decision: J''~~ £ 9 , 2 60 3 Board or Staff person rendering action/decision: Pz~.u,~.~G ~,u~ E~.~/y'o~o.~me~L C'o.~m.ss.~,~,1 Does this appeal involve a specific parcel of land? es (no) If yes, are you an adjacent property owner? (yes) no Name of Appellant(s): N,~£ UA~~- ~vaD ~-a,u~ur,~:.v~vr-~s c/o ~a!~ -~e/~z~'F~L.o, ~,z.FS~~E.u~ Mailing Address: F?C!. ,E~ oe i o V'A% ~ C'a ~iG S~ Phone: N ~ 9 ~ / % 8 ~ Physical Address in Vail: ~ tl~jZ ~o%r~ Legal Description of Appellant(s) Property in Vail: Lot;~ck:_ Subdivision: ~~~~ i~~t,~6€ 2ti~ ~t>ti,$' Appellant(s) Signature(s): ~,/~ a list of signattlres'if more space is required). Submittal Requirements: 1. On a separate sheet or separate sheets of paper, provide a detailed explanation of how you are an "aggrieved or adversely affected person". 2. On a separate sheet or separate sheets of paper, specify the precise nature of the appeal. Please cite specific code sections having relevance to the action being appealed. ~,__ P_ro~ride a 1i5t of names-~r-~d -F~Cs {bot-h-mailfng at~d pf}ys+ca4 addresses in Vait) of aff owners of property who are the subject of the appeal and all adjacent property owners (including owners whose properties are separated from .the subject property by a right-of-way, stream, or other intervening barrier). 4. Provide stamped, addressed envelopes for each properly owner listed in (3.). PLEASE SUBMIT THIS FORM AND ALL SUBMITTAL REQUIREMENTS T0: TOWN OF VAIL, DEPARTMENT OF COMMUNITY DEVELOPMENT, 75 SOUTH FRONTAGE ROAD, VAIL, COLORADO 81657. 'For Office Use Only: Date Received: Activity No.: Planner: Prniart Nn.~ ~ c ev ppea Attachment: B Nine. Vail Road Condominiums Appeal of June 9, 2003 Planning and Environmental Commission Decision Submittal Requirement 1: On a separate sheet or separate sheets of paper, provide a detailed explanation of how you are an "aggrieved or adversely affected person." For thirty years, Holiday House Condominium Association (now d/b/a Nine Vail Road Condominiums) has shared a parking area with Holiday Inn/Chateau Vail. This parking area, designed for the use of both properties, includes four parking spaces and maneuvering space on Nine Vail Road's property with access through a driveway on Holiday Inn/Chateau Vail property. The Four Seasons' plan for redevelopment eliminates the driveway and, thus, the access to the parking area on Nine Vail Road's property. To facilitate the development of the Four Seasons, Nine Vail Road Condominium Association has agreed to relocate its four parking spaces.. While. four parking spaces will fit in an area adjacent to Nine Vail Road's garage entry on Meadow Drive, a variance is required to locate these spaces in a "front setback." PEC has denied Nine Vail Road the opportunity to relocate all four currently existing parking spaces on its property, instead requiring that two spaces be located off-site. Nine Vail Road Condominiums Appeal of June 9, 2003 Planning and Environmental Commission Decision Submittal Requirement 2: On a separate sheet or separate sheets of paper, specify the precise nature of the appeal. Please cite specific code sections having relevance to the action being appealed. Nine Vail Road appeals the decision of the PEC to require it to relocate two parking spaces currently located on its property to an off-site location. Nine Vail Road has had actual use of the four parking spaces and the access drive since the original development. But for the Town's approval of the Four Seasons development plan, which eliminates the drive on the Chateau Vail site, Nine Vail Road would continue to have use of and access to these spaces. It now seeks appropriate redress by requesting a variance to allow it relocate the four parking spaces to the' only feasible alternative location on its property. Code sections on which the appeal is based are identified in italics. CHAPTER 17 VARIANCES 12-17-1: PURPOSE: A. Reasons For Seeking Variance: In order to prevent or to lessen such practical difficulties and unnecessary physical hardships inconsistent with the objectives of this title as would result from strict or literal interpretation and enforcement, variances from certain regulations maybe granted. A practical difficulty or unnecessary physical hardship may result from the size, shape, or dimensions of a site or the location of existing structures thereon; from topographic or physical conditions on the site or in the immediate vicinity,' or from other physical limitations, street locations or conditions in the immediate vicinity. The size, shape and dimensions of the Nine Vail Road site and the location of existing structures allow only 3 locations to be used for on-site parking: the current location now made inaccessible by the Four Seasons development plan, the proposed area adjacent to the garage entry on Meadow Drive and the configuration proposed on the plans approved by Council on 1St reading, with 2 spaces on Meadow Drive and the remainder on Vail Road. Since the property is located on a corner and has two front setbacks, the requirement that no parking be placed in a front setback imposes undue hardship on the applicant in attempting to accommodate the Four Seasons development. 12-17-6: CRITERIA AND FINDINGS: 8. Necessary Findings: The planning and environmental commission shall make the following findings before granting a variance: 1. That the granting of the variance will not constitute a grant of special privilege inconsistent with the limitations on other properties classified in the same district. No special privilege would derive from this variance. The request for the variance derives entirely from the Town's action in approving the Four Seasons development plan. Denial is inconsistent with similar use on adjacent properties. 2. That the granting of the variance will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. Since all maneuvering would be accomplished on the property and not on Meadow Drive, there should be no impact on public health, safety or welfare. It eliminates a curb cut and associated left turns on Vail Road, which were part of the configuration approved at 1St reading. This configuration leaves a curb cut on Vail Road and requires left turns onto Vail Road from the parking area. This is more detrimental to public health and safety than the current shared parking area since users of the current parking spaces are able to exit via the Frontage Road, an alternative no longer available under the approved configuration. Since the proposed usage is consistent with that on adjacent properties on Meadow Drive, there should be no material injury to properties in the vicinity. The total number of spaces is four. Nine Vail Road Condominiums Appeal of June 9, 2003 Planning and Environmental Commission Decision Given that 27 garage spaces at Nine vail Road are already accessed from Meadow Drive, the effect of 4 additional cars on Meadow Drive is negligible. 3. That the variance is warranted for one or more of the following reasons:.. a. The strict or literal interpretation and enforcement of the specified. regulation would result in practical difficulty or unnecessary physical hardship inconsistent with the objectives of this title. Strict interpretation of the regulation and the action taken by the PEC June 9 require that the parking be located off-site. This is in conflict with " 12-10-6: PARKING; OFF-SITE AND JOINT FACILITIES: All parking and loading facilities required by this chapter shall be located on the. same site as the use for which they are required ... Prior to permitting off-site or joint parking facilities, the council shall determine that the proposed location of the parking facilities and the" prospective operation and maintenance of the facilities will fulfill the purposes of this chapter, will be as usable and convenient as parking facilities located on the site of the use..." Parking off-site in the Four Seasons structure introduces logistics problems for both properties. b. There are exceptional or extraordinary circumstances or conditions applicable to the site of the variance that do not apply generally to other properties in the same zone. The irregular shape of the site and the fact that it has two front setbacks create unusual circumstances that do not apply to other properties in the same area. c. The strict or literal interpretation and enforcement of the specified regulation would deprive the applicant of privileges enjoyed by the owners of other properties in the same district. Other properties in the area are currently parking in the front setback on Meadow Drive: 15t Bank, Vail Fire Station, Meadow Vail Place, Alphorn, Skaalhus. Approved 6/23/03 Doug Cahill clarified that with the 3 new parking spaces required, a parking plan needs to be submitted. Doug Cahill made a motion to recommend approval to the Town Council with 1 condition: 1. That the applicant provides a detailed parking plan depicting where Alpenrose's parking spaces are on site, as well as those (3) required by the new residence, at the time of the first reading of the amending ordinance to the Vail Town Council Rollie Kjesbo seconded the motion. The motion passed by a vote of 7-0. 3. A request for a variance from Section 12-7A-11, Parking and Loading, Vail Town Code, to allow for parking and loading in the front setback, located at 9 Vail Road/Lot C, Vail Village 2"d Filing. Applicant: Nine Vail Road Condominium Association and Nicolet Island Development, Inc. Planner: Allison Ochs Allison Ochs presented an overview of the staff memorandum. Gary Hartman recused himself. Allison Ochs further detailed issues staff has with landscaping and front setbacks as detailed in the staff memorandum and said that staff is recommending denial of the applicant's proposal. TJ Brink, representing the applicant, gave an overview of existing parking and circulation conditions and the possible alternatives, including their preferred one, using a site plan made visible to the PEC. TJ Brink also described the situation with the existing transformer boxes and how they are working with Holy Cross Energy to find a workable solution to the unsightliness and logistical problems posed by their present location. Mr. Brink then went into the criteria of the Staff memo and how he believes those criteria are in fact being met. Gwen Scalpello, 9 Vail Road, presented an argument of how the proposed surface parking fits into the context and character of the neighborhood. She then summarized what she is asking is for 4 well-landscaped surface parking spaces. She further stated that she is not asking for much in regard to the 4-Seasons proposal and that this concession is not too much to ask for considering the fact that she has a 3-story wing to her building surrounded by very tall (proposed) buildings. Erickson Shirley then asked for clarification on the necessity for another curb cut. Gwen Scalpello answered the question using the site plan. Erickson Shirley asked Allison Ochs for staffs preferred alternative. Allison Ochs described staff's preferred alternative. Gwen Scalpello gave the reasons 9 Vail Road believes the logistics of staffs preferred alternative are an issue for the guest experience. TJ Brink added that those surface spots are only for overflow. Erickson Shirley then stated that people all over town work out deals to share and swap parking Attachment: C Approved 6/23103 spaces thereby mitigating parking problems off-site. TJ Brink stated why that will not work in this instance. John Schofield asked for public input, but received none. Doug Cahill agreed with the applicant's concerns and gave comments on several alternatives. He stated that adequate screening and landscaping is paramount considering the work to be done with the Streetscape plan and placing only three spaces instead of the four would enable adequate landscaping and screening, as well as a sidewalk realignment. He said he does not support the proposal as written. Chas Bernhardt said that parking is always an issue, especially in that area (9 Vail Road). Chas stated that he does not agree with the need for the 4 surface spaces being requested and he further stated that he does not support the application as proposed. Rollie Kjesbo stated he is in favor of staff's recommendation. George Lamb concurred with the comments thus far and said he appreciates where the applicant is coming from in terms of not having any spaces in the 4 Seasons, but that it is a viable solution and should be accepted, Erickson Shirley agreed with staff's recommendation and believes that the 4 Seasons will be true to their word and provide the requested 4 spaces. John Schofield stated that staff has offered an alternative that decreases the degree of variance being requested and that the Four Seasons has also been accommodating with their offer of spaces in their facility. He further stated that he thinks the applicant should go back and look at the alternatives. He said it is great that you folks are working together to try to resolve the situation, but the proposal is not supported. He then asked if there was any further question or comments from the board and went on to state the choices for Gwen. Doug Cahill made the motion to approve the applicant's request with the conditions listed in the staff memo: 1. That prior to application for a building permit, the applicant must return to the Design Review Board for final review and approval of all improvements. 2. That the applicant shall revise the plans, subject to Design Review Board review and approval, to indicate 2 surface parking spaces and the minimum area required for a functional turnaround within the front setback, adjacent to West Meadow Drive. Erickson Shirley asked for clarification on the conditions. George Lamb seconded. John Schofield asked Gwen Scalpello for clarification on her intentions considering the modified approval. Rollie Kjesbo asked for clarification on what is being voted upon with the conditional approval. Allison Ochs provided clarification. The motion passed by a vote of 4-2, with John Schofield and Chas Bernhardt opposed. 4. A request for a conditional use permit, to allow for a seasonal use to accommodate an educational, recreational, and cultural use, located at 530 S. Frontage Road/Ford Park, Unplatted. 4 ~~ MEMORANDUM TO: Town Council FROM: Community Development Department DATE: July 1, 2003 SUBJECT: .Ordinance No. 6, Series of 2003, a request for text amendments to Sections 12-6B-2, 12-66-3, 12-6C-2, 12-6C-3, 12-6D-2, 12-6D-3, 12-13- 4, Vail Town Code, to allow a Type II employee housing unit as a permitted use and to eliminate a Type II employee housing unit as a conditional use in the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts, and setting forth details in regards thereto. Applicant: Town of Vail Planner: Bill Gibson DESCRIPTION OF THE REQUEST The Town of Vail is proposing to amendments to Title 12, Zoning Regulations, Vail Town Code, to allow Type II employee housing units (EHU) as a permitted uses and to eliminate Type II EHUs as conditional uses in the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts. Please refer to the attached staff memorandum to the Planning and Environmental Commission dated March 24, 2003, for a more detailed description of this request and additional related information. BACKGROUND At its March 24, 2003 public hearing, the Planning and Environmental Commission voted 6-0 to forward a recommendation of approval to the Town Council of the requested text amendment. The Commission's recommendation was based upon the review of the criteria noted in Section VI of the March 24, 2003, staff memorandum and the evidence and testimony presented, with the findings noted in Section VII of the March 24, 2003, staff memorandum. STAFF RECOMMENDATION The Community Development Department recommends that the Town Council approve Ordinance No. 6, Series of 2003, on first reading to amend Sections 12-66-2, 12-6B-3, 12-6C-2, 12-6C-3, 12-6D-2, 12-6D-3, 12-13-4, Vail Town Code, to allow a Type II employee housing unit as a permitted use and to eliminate a Type II employee housing unit as a conditional use in the Single- Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts, and setting forth details in regards thereto. Staffs recommendation is based upon the review of the criteria noted in 1 ~~ err Section V of the March 24, 2003, staff memorandum and the evidence and testimony presented. Should the Town Council choose to approve Ordinance No. 6, Series of 2003, on first reading, the Community Development Department recommends the Town Council makes the following findings: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. IV. ATTACHMENTS Attachment A: Ordinance No. 6, Series 2003 Attachment B: Staff memorandum to PEC dated March 24, 2003 2 Attachment: A .~ ORDINANCE NO. 6 Series of 2003 AN ORDINANCE AMENDING SECTIONS 12-6B-2,12-6B-3,12-6C-2,12-6C-3,12-6D-2,12-6D-3, 12-13-4, VAIL TOWN CODE, TO ALLOW A TYPE II EMPLOYEE HOUSING UNIT AS A PERMITTED USE AND TO ELIMINATE A TYPE II EMPLOYEE HOUSING UNIT AS A CONDITIONAL USE IN THE SINGLE-FAMILY RESIDENTIAL (SFR), TWO-FAMILY RESIDENTIAL (R), AND TWO-FAMILY PRIMARY/SECONDARY RESIDENTIAL (PS) DISTRICTS, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Planning and Environmental Commission of the Town of Vail has held public hearings on the proposed amendments in accordance with the provisions of the Town Code of the Town of Vail; and WHEREAS, the Planning and Environmental Commission finds that the proposed amendments further the development objectives of the Town of Vail; and WHEREAS, the Planning and Environmental Commission of the Town of Vail has recommended approval of this text amendment at its March 24, 2003, meeting, and has submitted its recommendation to the Town Council; and WHEREAS, the Vail Town Council finds that the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and WHEREAS, the Vail Town Council finds that the amendments further the general and specific purposes of the Zoning Regulations; and WHEREAS, the Vail Town Council finds that the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. Ordinance No. 6, Series of 2003 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Sections 12-66-2, 12-6B-3, 12-6C-2, 12-6C-3, 12-6D-2, and 12-6D-3 of the Vail Town Code shall hereby be amended as follows: (deletions are shown in °~r;U° +"r^„^"additions are shown bold) 12-6B-2: PERMITTED USES: The following uses shall be permitted in the SFR district: Single-family residential dwellings. Type ll employee housing unit as set forth in chapter 73 of this title. 12-66-3: CONDITIONAL USES: The following conditional uses shall be permitted, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title. Bed and breakfast as further regulated by section 12-14-18 of this title. Dog kennel. Home child daycare facility as further regulated bysection 12-14-12 of this title. Public buildings, grounds and facilities. Public or private schools. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. 12-6C-2: PERMITTED USES: The following uses shall be permitted in the R district: Single-family residential dwellings. Two-family residential dwellings. Type I employee housing unit as set forth in chapter 13 of this title. Ordinance No. 6, Series of 2003 2 Type ll employee housing units as set forth in chapter 73 of this title. 12-6C-3: CONDITIONAL USES: The following conditional uses shall be permitted in the R district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Bed and .breakfast as further regulated by section 12-14-18 of this title. Dog kennel. Home child daycare facility as further regulated by section 12-14-12 of this title. Public buildings, grounds and facilities. Public or private schools. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. 12-6D-2: PERMITTED USES: The following uses shall be permitted: Single-family residential dwellings. Two-family residential dwellings. Type I employee housing unit as provided in chapter 13 of this title. Type ll employee housing unit as set forth in chapter 73 of this title. 12-6D-3: CONDITIONAL USES: The following conditional uses shall be permitted, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Bed and breakfast as further regulated by Section 12-14-18 of this title. Home child daycare facility as further regulated by section 12-14-12 of this title. Public buildings, grounds and facilities. Ordinance No. 6, Series of 2003 3 Public or private schools. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. follows: Section 2. Sections 12-13-4 of the Vail Town Code shall hereby be amended as (deletions are shown in °+r~ ";e~gf~/additions are shown bold) Ordinance No. 6, Series of 2003 4, 12-13-4: REQUIREMENTS BY EMPLOYEE HOUSING UNIT (EHU) TYPE EHU Zoning districts Ownership/ Additional Additional Site Garage Parking Minimum/ Density ~ permitted by Transferenc GRFA' Coverage CredibStorage Maximum right or by e /Reduced Requirement GRFA of an conditional use Landscape Area EHU Type Permitted Use: The EHU The EHU is n/a Allowed 300 Per Chapter 12- 300 sq. ft. Allowed ll Single-Family shall not be entitled to an sq. ft. of 10 as a dwelling minimum. as third Residential, sold or additional additional unit. 1,200 sq. ft. unit on Two-Family transferred 500 sq. ft. garage area maximum. property. Residential, separately GRFA credit. for the EHU. Does not Primary/Secon from the unit count as dary it is All units not density. Residential associated constructed with. with a garage Conditional Use: shall be required a Residential minimum 75 ~~~e-F~n-wily sq. ft. of ~'~:sierentia~ storage area in addition to normal closet Agriculture & space. This 75 Open Space sq. ft. shall be a credit for storage only. Ordinance No. 6, Series of 2003 Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect 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. Section 4. 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. Section 5. The amendment of any provision of the Town Code 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 proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All .bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. Ordinance No. 6, Series of 2003 6 INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 1st day of July, 2003, and a public hearing for second reading of this Ordinance set for the 15th day of July, 2003, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. ATTEST: Lorelei Donaldson, Town Clerk Ludwig Kurz, Mayor READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 15th day of July, 2003. ATTEST: Lorelei Donaldson, Town Clerk Ludwig Kurz, Mayor Ordinance No. 6, Series of 2003 7 Attachment: B MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: March 24, 2003 SUBJECT: A request for a recommendation to the Vail Town Council of proposed text amendments to Sections 12-66-2, 12-6B-3, 12-6C-2, 12-6C-3, 12-6D-2, 12-6D- 3, 12-13-4, Vail Town Code, to allow a Type II employee housing unit as a permitted use and to eliminate a Type II employee housing unit as a conditional use in the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts, and setting forth details in regard thereto. Applicant: Town of Vail Planner: Bill Gibson 1. SUMMARY The applicant, Town of Vail, is proposing to amendment Title 12, Zoning Regulations, Vail Town Code, to allow a Type II employee housing unit (EHU) as a permitted use and to eliminate a Type II employee housing unit as a conditional use in the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts. The primary purpose for these proposed text amendments is to expedite the development review process for Type II EHUs to make more efficient use of the Planning and Environmental Commission, Town Staff, and applicants' time and resources. The proposed text amendments do not alter the Town's existing development standards or criteria for review of Type II EHUs. Based upon staffs review of the criteria in Section VI of this memorandum, the Community Development Department recommends that the Planning and Environmental Commission forward a recommendation of approval to the Town Council of the requested text amendments, subject to the findings noted in Section VII of this memorandum. II. DESCRIPTION OF REQUEST A Type II EHU is a deed restricted dwelling unit constructed in conjunction with asingle- family or two-family residence in the Single-Family Residential (SFR), Two-Family Residential (R), Two-Family Primary/Secondary Residential (PS), and Agriculture and Open Space (A) districts. Type II EHUs can not be sold or transferred separately from the primary dwelling unit to which it is associated. Type II EHUs must be leased to, and occupied by; tenants employed within Eagle County in accordance with the requirements of 1 the deed restriction. For zoning purposes, Type II EHUs are not counted as density and are eligible for additional gross residential floor area (GRFA) and garage floor area credits. Currently Type II EHUs are allowed as conditional uses within the Single-Family Residential (SFR), Two-Family Residential (R), Two-Family Primary/Secondary Residential (PS), and Agriculture and Open Space (A) districts; therefore, all applications forType II EHUs within these districts require Planning and Environmental Commission review and approval. Please note that the Town of Vail is not proposing to amend the regulations of the Agriculture and Open Space (A) district. The proposed text amendments will change a Type II EHU from a conditional use to a permitted use in the Single-Family Residential (SFR), Two-Family Residential (R), and Two- Family Primary/Secondary Residential (PS) districts. These proposed text amendments shift the burden of reviewing and approving Type II EHU applications from the Planning and Environmental Commission to the Town Staff. The primary purpose for these proposed text amendments is to expedite the development review process for Type II EHUs to make more efficient use of the Planning and Environmental Commission, Town Staff, and applicants' time and resources. The proposed text amendments do not alter the Town's existing development standards or criteria for review of Type II EHUs. Currently the Town Staff administratively processes Type II EHU applications on the Glen Lyon Subdivision Primary/Secondary and Single Family Lots of Special Development District #4, Cascade Village. Ordinance No. 23, Series of 1998, establishes the regulations for Special Development District #4 and specifically allows Type II EHUs on these residential properties as permitted rather than conditional uses. To the best of Staff's knowledge, there have been no negative issues associated with the administrative review of proposed Type II EHUs within the Glen Lyon Subdivision. Additionally, Town Staff administratively reviews and approves (or denies) applications for Type I EHUs in the Two- Family Residential and Two-Family Primary/Secondary Residential districts; Type III EHUs in the Lionshead Mixed Use 1 (LMU-1 ), Lionshead Mixed Use 2 (LMU-2), and Housing (H) districts; Type IV EHUs in all zone districts; and Type V EHUs in the Hillside Residential (HR) district. The Town of Vail is proposing to amendment Sections 12-6B-2, 12-6B-3, 12-6C-2, 12-6C-3, 12-6D-2, 12-6D-3, and 12-13-4, Vail Town Code, to allow a Type II employee housing unit as a permitted use and to eliminate a Type II employee housing unit as a conditional use in the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts. The proposed text amendments are as follows: (deletions are shown in ~+r~U° +",-^„^"additions are shown bold) 72-6B-2: PERMITTED USES: The following uses shall be permitted in the SFR district.• Single-family residential dwellings. Type 11 employee housing unit as set forth in chapter 73 of this title. 12-6B-3: CONDITIONAL USES: The following conditional uses shall be permitted, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title. .Bed and breakfast as further regulated by section 12-14-18 of this title. Dog kennel. Home .child daycare facility as further regulated by section 12-14-12 of this title. Public buildings, grounds and facilities. Public or private schools. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. 12-6C-2: PERMITTED USES: The following uses shall be permitted in the R district.' Single-family residential dwellings. Two-family residential dwellings. Type 1 employee housing unit as set forth in chapter 13 of this title. Type I! employee housing units as set forth in chapter 73 of this title. 12-6C-3: CONDITIONAL USES: The following conditional uses shall be permitted in the R district, subject to issuance ofa conditional use permitin accordance with the provisions ofchapter 16 of this title: Bed and breakfast as further regulated by section 12-14-18 of this title. Dog kennel. Home child daycare facility as further regulated by section 12-14-12 of this title. Public buildings, grounds and facilities. 3 Public or private schools. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. 12-6D-2: PERMITTED USES: The following uses shall be permitted: Single-family residential dwellings. Two-family residential dwellings. Type 1 employee housing unit as provided in chapter 13 of this title. Type ll employee housing unit as set forth in chapter 73 of this title. 12-6D-3: CONDITIONAL USES: The following conditional uses shall be .permitted, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Bed and breakfast as further regulated by Section 12-14-18 of this title. Home child daycare facility as further regulated by section 12-14-12 of this title. Public buildings, grounds and .facilities. Public or private schools. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. 4 72-13-4: REQUIREMENTS BY Eti1FLOYEE HOUSING UNIT (EHU) TYPE EHU Zoning districts permitted by right or by conditional use Ownership/ Transference Additional GRFA' Additional Site Coverage /Reduced Landscape Area Garage Ciedit/Storage Requirement Parking Minimum/ Maximum GRFA of an EHU Density Type II Permitted Use: The EHU shall The EHU is n/a Allowed 300 sq. ft. Per Chapter 12-10 as a 300 sq, ft. minimum. Allowed as Single-Family not be sold or entitled to an of additional garage dwelling unit. 1,200 sq. ft. third unit on Residential, Two- transferred additiona1500 sq. area for the EHU. maximum. property. Family Residential, separately from ft. GRFA credit Does not Primary/Secondary the unit it is count as Residential associated with. A!I units not density. constructed with a garage shalt be Conditional Use: required a minimum ~r+~ily 75 sq, ft. of storage Residential, -Twe- area in addition to Fan}i1j~Residential~ normal closet l=ria~asy{Sesendar~` space. This 75 sq. Residential; ft, shall be a credit Agriculture & Open for storage only. Space 111. BACKGROUND In September and December of 1992, the Town Council adopted Ordinances 9 and 27, Series of 1992, to create Chapter 18.57, Vail Town Code, (Employee Housing) which provided for the addition of Employee Housing Units (EHUs) as permitted or conditional uses within certain zone districts. Chapter 18.57, has since been renamed Chapter 12-13, Vail Town Code (Employee Housing). Ordinances 9 and 27, Series of 1992, created Type II EHUs in the Single-Family Residential, Two-Family Residential, and Primary/Secondary Residential districts as conditional uses. In August of 1999, the Planning and Environmental Commission began the .review of proposed text amendments to the Employee Housing chapter intended to improve the incentives for private developers to construct EHUs. The August 23, 1999, staff memorandum to the Planning and Environmental Commission (see Attachment C) staff recommended that Type II EHUs be changed from conditional uses to permitted uses in the Single-Family Residential, Two-Family Residential, and Primary/Secondary Residential districts. The approved minutes from the August 23, 1999 meeting (see Attachment D) note only limited discussion of this issue in which one commissioner voiced support for this proposed change and one commissioner voiced opposition to this change. At its September 13, 1999, public hearing, the Planning and Environmental Commission further reviewed the proposed text amendments to the Employee Housing chapter which had been revised based upon the August 23, 1999, discussions. The proposed text amendments to change Type II EHUs from a conditional use to a permitted use were not included in the September 13, 1999, staff memorandum to the Planning and Environmental Commission (see Attachment E). In April of 2000, the Town Council adopted Ordinance 6, Series of 2000, to repeal and reenact the Employee Housing chapter to provide additional incentives for the creation of employee housing in Vail. Ordinance 6, Series of 2000, made no changes to the regulations listing Type II EHUs as conditional uses in the Single-Family Residential, Two-Family Residential, and Primary/Secondary Residential districts. To the best of Staffs knowledge, the Planning and Environmental Commission has approved 21 Type II EHU applications since 1994 and during that same time frame only one Type I I EHU application has been denied. Based upon this record, Staff believes that Type II EHU applications that fully comply to the Town's required development standards essentially receive a "rubber stamp" conditional use permit approval from the Planning and Environmental Commission. Staff believes that a more efficient approach to the review process for Type II EHUS is to all Staff to administratively review and then approve Type II EHU applications that fully comply to the Town's development standards and criteria for review. 6 IV. ROLES OF REVIEWING BODIES Plannina and Environmental Commission: Action: The Planning and Environmental Commission is responsible for forwarding a recommendation ofapproval/approval with conditions/denial to the Town Council of a text -amendment. The Planning 8~ Environmental Commission shall consider the following factors with respect to the requested text amendment: 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined: in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 3. The extent to which the. text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and 5. Such other factors and criteria the Commission deems applicable to the proposed text amendment. Design Review Board: :Action: The Design Review Board has NO review .authority of a text. amendment .or conditional use permit, but must review any accompanying Design Review application. Town Council: Actions of Design Review Board or Planning .and Environmental Commission may be appealed to the Town Council or by the Town Council. Town Council evaluates whether or not the Design Review Board or Planning and Environmental Commission erred with approvals or denials and can uphold, uphold with modifications, or overturn the board's decision. The Town Council is responsible for final approvallapprovaltyith conditions/denial of a text amendment. The Town Council shall consider the following factors with respect to the requested text amendment: 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and 2. The extent to which the text amendment would better implement and better achieve 7 the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent. with municipal development objectives. 5. Such other factors and criteria the Commission and/or Council deem ,applicable to the proposed text amendment. Staff: The staff is responsible for ensuring that all submittal requirements are provided and plans conform to the technical requirements of the Zoning Regulations. The staff also advises the applicant as to compliance with the design guidelines. Staff provides a staff memo containing background on the property and provides a staff evaluation of the project with respect to the required criteria and findings, and a recommendation on approval, approval with conditions, or denial. Staff also facilitates the review process. V. APPLICABLE PLANNING DOCUMENTS Town of Vail Zoninq_Requlations (Title 12 Vail Town Code) Chapter 12-1: Title, Purpose and Applicability 12-1-2: Purpose A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. Article 12-6B: Single-Family Residential (SFR) district 12-68-1: PURPOSE: The single-family residential district is intended to provide sites for low density single-family residential uses, together with such public facilities as may be appropriately located in the same district. The single-family residential district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with single-family occupancy, and to maintain the desirable residential qualities of such sites by establishing appropriate site development standards. Article 12-6C: Two-Family Residential (R) district 12-6C-1: PURPOSE: The two-family residential district is intended to provide sites for low density single family or two-family residential uses, together with such public facilities as maybe appropriately located in the same district. The two-family residential district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with single-family and two-family occupancy, and to maintain the desirable residential qualities of such sites by establishing appropriate site development standards. Article 12-6D: Two-Family Primary/Secondary Residential (P/S) district 12-6D-1: PURPOSE: The two-family primary/secondary residential district is intended to provide sites for single-family residential uses or two-family residential uses in -which one .unit is a larger primary residence and the second unit is a smaller caretaker apartment, together with such public facilities as may appropriately be located in the same district. The two-family primary/secondary residential district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with single-family and two-family occupancy, and to maintain the desirable residential qualities of such sites by establishing appropriate site development standards. Chapter 12-13: Employee Housing 12-13-1: PURPOSE: The Town's economy is largely tourist based and the health of this .economy is premised on exemplary service for Vai!'s guests. Vail's ability to provide .such service is dependent upon a strong, high quality and consistently available work force. To achieve such a work force, the community must work to provide quality living and working conditions. Availability and affordability of housing plays a critical role in creating quality living and working conditions for the community's work force. The Town recognizes a permanent, year-round population plays an importantrole in sustaining a healthy, viable community. Further, the Town recognizes its role in conjunction with the private sector in ensuring housing is available. The Town Council may pursue additional incentives administratively to encourage the development of employee housing units. These incentives may include, but are not limited to, cash vouchers, fee waivers, tax abatement and in-kind services to owners and creators of employee housing units. The Town or the Town's designee may maintain a registry and creafe lists of all deed restricted housing units created in the Town to assist employers and those seeking housing. 9 Town of Vail Land Use Plan Chapter II: Land Use Plan Goals/Policies 5.3 Affordable employee housing should be made available through private efforts, assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 5.5 The existing employee housing base should be preserved and upgraded. Additional employee housing needs should be accommodated at varied sties throughout the community. Town Council Mission Statement We (i.e. Town Council) will provide the citizens of Vail and our guests with a superior level of environmentally-sensitive services and an abundance of recreational, educational and cultural opportunities. VI. CRITERIA AND FINDINGS The review criteria and factors for consideration for a request of a text amendment are established in accordance with the provisions of Chapter 12-3, Vail Town Code (Ordinance No. 4, Series 2002). A. Consideration of Factors Regarding the Text Amendment: The extent to which the text amendment furthers the general and specific .purposes of the Zoning Regulations; and The proposed text amendments do not alter the existing development standards and/or criteria for review for Type I I EHUs, but simply shift the burden of review and approval of Type II EHU applications from the Planning and Environmental Commission to Town Staff. Therefore, Staff believes that the proposed text amendments will create •a more efficient development review process for Type II EHUs, and therefore further the general and specific purposes of the Zoning Regulations, Employee Housing chapter, and the Single-Family Residential, Two- Family Residential, and Two-Family Primary/Secondary Residential districts, as noted in Section V of this memorandum. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 10 Staff believes that the proposed text amendments will create a more efficient development review process for Type II EHUs thus furthering the purpose, intent, and objectives of the Vail Comprehensive Plan and the development objectives of the Town. Staff also believes that the proposed text amendments specifically conform to the goals 5.3 and 5.5 of the Town of Vail Land Use Plan, as noted in Section V of this memorandum. Additionally, staff believes that the proposed text amendments will create a more efficient development review process for Type II EHUs thus improving the level of service to Vail's citizens which is compatible with the Town Council's mission statement which reads as follows: "We (i.e. Town Council) will provide the citizens of Vail and ourguesfs with a superior level of environmentally-sensitive services and an abundance of recreational, educational and cultural opportunities." 3. -The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and To the best of Staff's knowledge, of the approximately 21 Type II EHU applications reviewed by the Planning and Environmental Commission since .1994, only one application has been denied. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistentwith municipal development objectives. Since the proposed text amendments do not alter the existing development standards and/or criteria for review for Type II EHUs, Staff believes that the proposed text amendments provide a harmonious, convenient, workable relationship among land use regulations that are consistent with the Town of Vail master plans and development objectives. Staff also believes that the proposed text amendments will create a more efficient development review process for Type II EHUs thus furthering the purpose, intent, and objectives of the regulations. 5. Such other factors and criteria the Commission and/or Council deem applicable to the proposed text amendment. Nina Timm, Town of Vail Housing Coordinator, on behalf of the Vail Local Housing Authority, is supporting these proposed text amendments. 11 B... The Planning and Environmental Commission shall make the following findings before forwarding a recommendation of approval for of a text amendment: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. VII. STAFF .RECOMMENDATION The Community Development Department recommends that the Planning and Environmental Commission forward a recommendation of approval to the Town Council for the proposed text amendments to Sections 12-66-2, 12-6B-3, 12-6C-2, 12-6C-3, 12-6D- 2, 12-6D-3, Vail Town Code, to allow a Type II employee housing unit as a permitted use and to eliminate a Type I I employee housing unit as a conditional use in the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (PS) districts. Staffs recommendation is based upon the review of the criteria in Section VI of this memorandum and the evidence and testimony presented, subject to the following findings: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations; and 3. .That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. 12 VIII. ATTACHMENTS A. Public Notice B. Vicinity Map C. August 23, 1999 Staff Memorandum (excerpt) D. August 23, 1999 Planning and Environmental Commission minutes (excerpt) E. September 13, 1999 Staff Memorandum (excerpt) 13 :THIS ITEM MAY AFFECT YOUR PROPERTY Attachment: A PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the Planning and Environmental Commission of the Town of Vail will hold a public hearing in accordance with Section 12-3-6 of the Vail Town Code on March 24, 2003, at 2:00 P.M. in the Town of Vail Municipal Building. In consideration of: A request for a recommendation to the Vail Town Council of proposed text amendments to Title 12, Zoning Regulations, Vail Town Code, to amend the Gross Residential Floor Area (GRFA) regulations in the Hillside Residential (HR), Single-Family Residential (SFR), Two-Family Residential (R), Two-Family Primary/Secondary Residential (PS), Residential Cluster (RC), Low Density Multiple-Family (LDMF), Medium Density Multiple-Family (MDMF), High Density Multiple- Family (HDMF), and Housing (H) districts, and setting forth details in regard thereto. Applicant: Vicki Pearson, et.al. Planner: Bill Gibson A request for a recommendation to the Vail Town Council of propo Sections 12-66-2, 12-6B-3, 12-6C-2, 12-6C-3, 12-6D-2, 12-6D-3, V Type II employee housing unit as a permitted use and to eliminate unit as a conditional use in the Single-Family Residential (SFR), T Two-Family Primary/Secondary Residential (PS) districts, and sett thereto. Applicant: Town of Vail Community Development Department Planner: Bill Gibson sed text amendments to ail Town Code, to allow a a Type II employee housing wo-Family Residential (R), and ing forth details in regard The applications and information about these proposals are available for public inspection during regular business hours at the Town of Vail Community Development Department office, 75 South Frontage Road. The public is invited to attend the project orientation held in the Town of Vail Community Development Department office and the site visits that precede the public hearing. Please call (970) 479-2138 for additional information. Sign language interpretation is available upon request with 24-hour notification. Please call (970) 479-2356, Telephone for the Hearing Impaired, for additional information. This notice published in the Vail Daily on March 7, 2003. bt IJ ~~ , ~/ 1J'-~ ~, Tow~roFVpr~''i 1 Properties Affected by the Proposed Text Amendments to Title '12 Zoning Regulations, Vail Town Code Amending Type 11 Employee Housing Units (EHU) and Gross Residential Floor Area (GRFA) i Booth Creek N S .. V This map was seated by the Town o(Vail GIS Gepartmanl Use of Ihls map should be for general purposes only. Tha Town of Vaii does not warrant the accuracy of the Inlormation contained herein. 0 1 Miles 1" = 3000' AMORE DETAILED PRESENTATION OF THIS INFORMATION CAN BE VIEWED BY VISITING THE TOWN OF VAIL COMMUNITY DEVELOPMENT DEPARTMENT 75 South Frontage Road 02/28/03 Vail, CO. 81657 Residential Zoned Properties - Single Family, Two-Family & Primary/Secondary Residential } Buffer -~~~~ l WPSt Creek ~Yc .''4'~ / Red ~j' ~ `,9 l `-~ "T ~~h ~ Sandstone U81 ~ r -~ ~ ~~ ~ ,t ~~~ ~ ~~~-~ ~ Cr p,/ ~~> eek ~ v J~~i y. A~ ~ ~~, ~-~ Ellefson ,,,~r~i~ y~~y/ c ~ 1 ~ ,~~r~~ Park \ ~ h~hrl~l._ .~ ,,;/~ ~{/._`~~. ~ Donovan Park Stephens Park This map was orealed by The Town d Vail GIS DeparMenL Use d this map should be tar general puryoses only. The Town d Vail does nct warrarH Ure accvacy d the idormation corHarted Iwdn. ;;~ Gore Creek Residential -Classes PrirT'ary Secondary Residential ® Single Family Residential ® Tvw Family Residential A MORE DETAILED PRESENTAT OF THIS INFORMATION CAP VIEWED BY VISITING THE TC OF VAIL COMMUNITY DEVELOPMI DEPARTMI 75 South Frontage. R Vail, CO. 81 03/1 i N W'E Ford C \~r'~i Park ~~p ~ 0 ~ Miles 1" = 3000' D N n f~D .« Attachment: C MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development DATE: August 23, 1999 SUBJECT: Potential revisions to the Employee Housing regulations, the Primary/Secondary and Two-Family Zones Districts, and the Nonconforming Use chapter of the Zoning Regulations. Additionally, the proposed new Affordable Housing zone district. Staff: Dominic Mauriello On June 15, 1999 the Community Development Department presented to the Town Council some potential revisions o the Town Code having impact on the provision of employee housing in the Town's duplex zone districts, Two-Family Residential and Two-Family Primary/Secondary Residential. The Town Council gave staff the direction to move forward with the, concepts- presented. Additionally, staff presented a proposal to create a new Affordable Housing zone district, which would be a district similar to the GU zone district in that the development standards would be prescribed by the PEC. For the purpose of discussion, staff has divided the proposal into three sections. One dealing. directly with changes to the Employee Housing Unit chapter of the Zoning Regulations, another dealing with other changes to the code which have indirect impacts on employee housing and a section dealing with the proposed zone district for affordable housing. As part of the Vail Tomorrow and Common Ground processes the community stated that the Town needed to improve its incentives for private developers to create Employee Housing Units (EHUs). Staff has identified some areas of the Zoning Regulations that may need to be modified in order to ensure that the Zoning Regulations are truly "promoting" employee housing rather than acting more as a disincentive. The intent of presenting this is to gauge whether the Town Council agrees that there may be areas that need to be addressed in the code and if staff should work to resolve these issues. The following is a list of what we believe to be disincentives to providing EHUs: • Requiring garage space for an EHU, where code does not require garage space for other dwelling units • Restricting the sale of a Type 1 EHU and requiring that it be a rental property • Taking away the right to do a "250" on older homes if an EHU GRFA credit is used • Not allowing enough site coverage to build the EHU on smaller lots • Not providing GRFA credits for multiple-family EHUs (Type III) • Counting Type III EHUs as an impact on density Page 1 of 5 T ....... ......~ .. 1y Summary of Potential Zoning Text Changes Chapter 13, Employee Housing 1. Deed Restrictions/Enforcement This proposal adds a provision requiring that EHUs be rented and not remain vacant for a period of 4 consecutive months. The existing compliance language is being removed so that violations of this chapter can be processed like any other zoning violation. The current compliance statement provides for "publication" of the violation with the Housing Authority. The proposed language will aid in the enforcement of EHUs by establishing that they must be rented and allowing the Town to cite the owner when they are not meeting these requirements. The current regulations are unclear as to the occupancy requirements. Additionally, the current reporting requirement provides that the owner provide a report of rental activity. This proposal requires a sworn affidavit from the owner. This will aid with the enforcement of EHUs. Deed restrictions are also being added for new Type Vl EHU which are units similar to the Vail Commons units and Red Sandstone, where the appreciation on the unit is capped. 2. Development Standards This proposal includes an amendment to the development standards allowing a Type I EHU (those allowed on lots less than 75,OOD sq. ft.) which is less than 50D sq. tt. to be detached from the main structure if constructed in conjunction with a two car garage. Staff believes this gives flexibility with design on smaller lots without compromising the overall quality of development. 3. Application Procedure This section is proposed to be amended to allow existing dwelling units to be deed restricted administratively. Additionally, this section would allow illegal or nonconforming units to be deed restricted as long as they otherwise conform to the Uniform Building Code and can meet the Town's parking requirements. This will allow EHUs to be created without going through a lengthy review process and helps encourage the legalization of substandard dwelling units/lock-offs. 4. Changes by EHU Type A. Type I (2"d unit allowed on duplex lots less than 15,000 sq. ft.) • Allowed to be sold separately from main residence (currently, both units on lot must be deed restricted to allow sale) • Allowed an additional 500 sq. ft. of GRFA (currently only allowed 250 sq. ft.) • Units allowed to apply for 250s regardless of EHU presence • Site coverage increased 5% and landscape area reduced 5% for lots with an EHU • Removal of age limitations and number of inhabitants Page 2 of 5 Summary of Potential Zoning Text Changes Chapter 13, Employee Housing 1. Deed Restrictions/Enforcement This proposal adds a provision requiring that EHUs be rented and not remain vacant for a period of 4 consecutive months. The existing compliance language is being removed so that violations of this chapter can be processed like any other zoning violation. The current compliance statement provides for "publication" of the violation with the Housing Authority. The proposed language will aid in the enforcement of EHUs by establishing that they must be rented and allowing the Town to cite the owner when they are not meeting these requirements.. The current regulations are unclear as to the occupancy, requirements. Additionally, the current reporting requirement provides that the owner provide a report of rental activity. This proposal requires a sworn affidavit from the owner. This will aid with the enforcement of EHUs. Deed restrictions are also being added for new Type VI EHU which are units similar to the Vail Commons units and Red Sandstone, where the appreciation on the unit is capped. 2. Development Standards ,~ This proposal includes an amendment to the development standards allowing a Type I EHU (those allowed on lots less than 15,000 sq. ft.) which is less than 500 sq. tt. to be detached from the main structure if constructed in conjunction with a two car garage. Staff believes this gives flexibility with design on smaller lots without compromising the overall quality of development. 3. Application Procedure This section is proposed to be amended to allow existing dwelling units to be deed restricted administratively. Additionally, this section would allow illegal or nonconforming units to be deed restricted as long as they otherwise conform to the Uniform Building Code and can meet the Town's parking requirements. This will allow EHUs to be created without going through a lengthy review process and helps encourage the legalization of substandard dwelling units/lock-offs. 4. Changes by EHU Type A. Type I (2"d unit allowed on duplex lots less than 15,000 sq. ft.) • Allowed to be sold separately from main residence (currently, both units on lot must be deed restricted to allow sale) • Allowed an additional 500 sq. ft. of GRFA (currently only allowed 250 sq. ft.) • Units allowed to apply for 250s regardless of EHU presence • Site coverage increased 5% and landscape area reduced 5% for lots with an EHU • Removal of age limitations and number of inhabitants Paee 2 of 5 • Removal of requirement that 50% of the parking be enclosed B." Type tl (3~d unit allowed on duplex lots 15,000 sq. ft. +. A rental unit) • Allowed as a permitted use (currently, requires a conditional use permit) • Units allowed to apply for 250s regardless of EHU presence • Maximum .size increased to 1,200 sq. ft. (currently 900. sq. ft. limit) • Removal of age limitations and number of inhabitants (inhabitants regulated by Zoning Regs. and Building Code) •~ ~- Removal of requirement that 50% of the parking be enclosed C. Type III (rental unit in multiple-family, residential cluster) • Provides a 500 sq. ft. GRFA credit (no credit currently exists) • Parking simplified to meet Chapter 10 requirements, but no less than 2 per unit • Modified to include Type IV EHUs (Type IV category being removed) • Min./Max. sq. ft. modified to allow 300 sq. ft. minimum and 1,200 sq. ft. maximum for dwelling unit or 500 sq. ft. maximum for a dormitory style building • Proposed to not count as density (currently count as 0.5 of a dwelling unit and Type IV as 0.333 of a dwelling unit) • Removal of age limitations and number of inhabitants D. Type IV (multiple family, dormitory) • Eliminated as a category but rolled into Type III • None exist today F. Type V (Hillside Residential - Spraddle Creek) • Removal of requirement that 50% of the parking be enclosed G. Type VI (New Type for projects like Vail. Commons and Red Sandstone) • Allowed as permitted use in Single/Two-Family/P/S zone districts, Agriculture and Open Space and conditional use in all other districts • EHUs must be sold separately (they are for sale units, not rental) • Density, site coverage, GRFA, etc. based on the zone district Chapter 6 (C and D) -Primary Secondary and Two-Family Residential Zone Districts Minimum Lot Size Requirement The minimum lot size requirement in the Primary/Secondary and Two-Family Residential Zone districts of 15,000 sq. ft. has an impact on the number of EHUs property owners are willing to develop and an impact on redevelopment and upgrading of these units. The 15,000 sq. ft. minimum lot size requirement dates back to 1973 with the first full-scale re- codification of the Zoning Code (the 1969 Zoning Code required only 10,000 sq. ft. lots). That minimum lot size was applicable to platting occurring mostly in the Vail Village and Vail Valley filings. When the West Vail areas (1986 - 87) and the East Vaii (1974) areas were annexed, the Town's zoning was applied to lots platted in Eagle County without regard for the County's lot size Page 3 of 5 \\1J A TT 1Tl A T A 1~ZIL'D VlIT.TC`, nC/'~~ er:T <n clnrn rrn .~ ,-..~., requirements of the time. There are approximately 936 lots in the Town of Vail that are zoned Two-Family orTwo-Family Primary/Secondary which are undeveloped, developed with asingle-family home, or atwo-family residence (i.e., this number does not include properties developed with multiple family projects). Of these 936 lots, staff estimates that 32% (300 lots) of these lots have lot sizes less than 15,000 sq. ft. Staff was not able to break down the number of lots by specific lot size. This ability will be available in the near future with the implementation of our geographic information system (GIS). There have only been 20 Type I EHUs created in the Town. Property owners that currently have lots less than 15,000 sq. ft. with a nonconforming second dwelling unit are not allowed to add square footage unless they deed restrict the second unit on the property. Many property owners are not willing to deed restrict their already existing unit and therefore the EHU is not created and generally speaking the properties are not upgraded. Another problem is that on several of these smaller lots, two units exist on the lot by separate owners. They face the same deed restriction problem. What are the potential solutions? 1. Lower the minimum lot size requirement in the Two-Family acid Primary/Secondary zone districts to a level that includes the majority of lots. This will allow lots to be constructed with 2 dwelling units and a Type Il EHU. We believe the result, in the long run, will be more EHUs created. Staff would propose reducing the minimum lot size to 10,000 sq. ft. -12,000 sq. ft. range, with a provision that this only applies to existing lots that already have lot sizes less than 15,000 sq. ft. Any resubdivision or new subdivision would have to meet the 15,000 sq. ft. requirement. This provision would prevent the assimilation of lots with the intent to create new small lot subdivisions. 2. Keep the minimum lot size requirement, but allow lots to be developed as asingle-family home (no change), one dwelling unit plus a Type I EHU (no change), or two dwelling units with a re wired Type II EHU (new). These changes, we believe, will result in a net increase in the number of EHUs and just as importantly, result in redevelopment of older properties. 3. In addition to the above, allow lots with 2 existing units that were legally deeded to separate parties to add allowable square footage without deed restrictions required. This would essentially promote the nonconformity and allow it to continue. By allowing #2 above, the deed restriction dilemma could be resolved by one of the owners providing an EHU, so that option could help resolve this unique problem. Another solution to this problem could also be utilizing our variance process and allow a variance in these situations and allow residents to expand their homes. This would require acceptance that having two owners of such a property is a hardship warranting the issuance of a variance. Staff believes this to be a viable solution. Effect of Proposed Changes on GRFA, Site Coverage, and Landscape Area Current Regulations Proposed Regulations 14,000 sq. ft. lot 14,000 sq. ft. lot (dwelling unit plus Type I EHU) (either DU + Type I EHU or 2 DUs + Type II EHU) GRFA: 3,500 sq. ft. (base) 3,500 sq. ft. (base) Page 4 of 5 APPROVED SEPTEMB Attachment: D Brent Wilson gave an overview of the staff memo. John Schofield asked if the applicant had anything to add. There was no applicant or public comment. Doug Cahill said this was not affecting the neighbors and to move forward. .Chas Bernhardt agreed that there was no impact. Diane Golden agreed that there was no impact. Tom Weber had no comments. Brian Doyon had no comments.. Galen Aasland agreed with Chas. John Schofield agreed. Russ Forrest said staff would attempt to negotiate with homeowners in good faith and pursue a condemnation action. Chas Bernhardt made a motion for approval in, accordance with the staff memo. Diane Golden seconded the motion. The motion passed by a vote of 7-0. 3. A request for a worksession for amendments to Title 12, Zoning with respect to Employee Housing Unit Standards, Minimum Lot Size Requirement in the Primary/Secondary and Two-Family Residential Zone Districts and Site Coverage Standards. Also, a proposal for a new zone district entitled Affordable Housing (AH) District.. Applicant: Town of Vail Planner: Dominic Mauriello Dominic Mauriello gave an overview of the staff memo with a slide presentation. John Schofield asked for any public comments and stated that this was a worksession, initiated by the Town Council. Sally Jackel, a Matterhorn resident, said the concept was wonderful and said it was important to encourage it. She said to not "ghettoize it" like Timber Ridge. She said that neighborhood groups would support this. She then asked about Type VI units. Dominic Mauriello explained that Type VI units were deed-restricted with an appreciation cap. Sally Jackel asked why it was in the Code and why would the Town be concerned unless it was in an Ag/Open Space. She then asked why was it a conditional use in amultiple-family zone district and a permitted use in asingle-family district. Dominic Mauriello said it was to label the product. John Schofield said the intent was to loosen the requirements for any EHU. Planning and Environmental Commission 3 Minutes August 23, 1999 APPROVED SEPTEMBER 27, 1999 Dominic Mauriello said the use was permitted, but the occupancy code was being, changed and that nothing needed to be written except per the underlying zoning. Sally Jackel asked about the removal of age limits or the inhabitants number. l:' Dominic Mauriello said it would be in accordance with the building /zoning code without any additional requirements. Farrow Hitt said this was a great idea for opening up options. He asked about an EHU on a primary/secondary. If both the primary/secondary owners could do this.. Dominic Mauriello said it would be "first-come first-serve." He said that each dwelling unit would get 250 sq. ft ., but only one unit could build an EHU. He then explained the attachment on a greater than 15,000 sq. ft. lot and unit not attached on a lot less than 15,000 sq. ft. He thought the 60/40 split should be 50/50 in the Two-Family Zone District. He said staff wanted to eliminate the Primary/Secondary Zone District and staff did not see any public benefit fora 60/40 split. Diana Donovan supported the concept, but said there was no enforcement vehicle for this. Dominic Mauriello stated there were 46 dispersed units in the Town of Vail. Russ Forrest said once a year staff contacted Eagle County for homeowners and sent letters to homeowners making sure an employee was living there. He said he would like to have signed affidavits. Diana Donovan said that within sight of her house, there were 3 deed -restricted units with no employees and no enforcement. She said everytime an upgrade occurs, the house becomes less affordable. She said that density equaled infrastructure impacts. She warned people of all the square footage being occupied when the economy changes and said if every week were Christmas week we could not handle it. She said that this had to be a long-term solution. She said we would have to be able to enforce it and can only allow square footage if it was for an EHU, as this was becoming another vehicle to.make more money. Brian Doyon stated that we had not enough industry to support everyone living here. He said second homes would remain vacant throughout the year. Diana Donovan said it is totally possible and asked what is to keep people from retiring here. She said she was concerned about making decisions that are not long term. She said that changing from a 70/30 to 60/40 split was a huge mistake and we need to understand why the rules were in place, before we change them. Carol Hymers said there were 5 homes originally in her neighborhood and now there were 44 homes and we could reach a problem with density. She said she was concerned with the parking and snow removal on sites with EHU's. She said she was not sure that one EHU is the way to go on a duplex lot, but rather two units. She agreed if the structure on the lot was architecturally ok, it might handle an additional EHU. Diane Golden said that architecturally ok was too subjective and she asked who would make that decision. Harry Gray said he was a big proponent for revising the zoning codes for the EHU's and felt that site coverage was driving the market away. He suggested letting people build what the market wants. He stated there were 330 lots in the Town that were downzoned when they were absorbed by the Town from the County. He said it was close~to $100,000 to build an EHU. He said the rental from an EHU was not going to encourage people to build an EHU, but a carrot. was needed for encouragement. He said that 35 houses were built a year and only 1 or 2 have Planning and Environmental Commission 4 Minutes APPROVED SEPTEMBER 27, 1999 Dominic Mauriello said the use was permitted, but the occupancy code was being, changed and that nothing needed to be written except per the underlying zoning. Sally Jackel asked about the removal of age limits or the inhabitants number. ; ' Dominic Mauriello said it would be in accordance with the building /zoning code without any additional requirements. Farrow Hitt said this was a great idea for opening up options. He asked about an EHU on a primary/secondary. If both the primary/secondary owners could do this. Dominic Mauriello said it would be "first-come first-serve." He said that each dwelling unit would get 250 sq. ft ., but only one unit could build an EHU. He then explained the attachment on a greater than 15,000 sq. ft. lot and unit not attached on a lot less than 15,000 sq. ft. He thought the 60/40 split should be 50/50 in the Two-Family Zone District. He said staff wanted to eliminate the Primary/Secondary Zone District and staff did not see any public benefit fora 60/40 split. Diana Donovan supported the concept, but said there was no enforcement vehicle for this. Dominic Mauriello stated there were 46 dispersed units in the Town of Vail. Russ Forrest said once a year staff contacted Eagle County for homeowners and sent letters to homeowners making sure an employee was living there. He said he would like to have signed affidavits. Diana Donovan said that within sight of her house, there were 3 deed -restricted units with no employees and no enforcement. She said everytime an upgrade occurs, the house becomes less affordable. She said that density equaled infrastructure impacts. She warned people of all the square footage being occupied when the economy changes and said if every week were Christmas week we could not handle it. She said that this had to be a long-term solution. She said we would have to be able to enforce it and can only allow square footage if it was for an EHU, as this was becoming another vehicle to.make more money. Brian Doyon stated that we had not enough industry to support everyone living here. He said second homes would remain vacant throughout the year. Diana Donovan said it is totally possible and asked what is to keep people from retiring here. She said she was concerned about making decisions that are not long term. She said that changing from a 70/30 to 60/40 split was a huge mistake and we need to understand why the rules were in place, before we change them. Carol Hymers said there were 5 homes originally in her neighborhood and now there were 44 homes and we could reach a problem with density. She said she was concerned with the parking and snow removal on sites with EHU's: She said she was not sure that one EHU is the way to go on a duplex lot, but rather two units. She agreed if the structure on the lot was architecturally ok, it might handle an additional EHU. Diane Golden said that architecturally ok was too subjective and she asked who would make that decision. Harry Gray said he was a big proponent for revising the zoning codes for the EHU's and felt that site coverage was driving the market away. He suggested letting people build what the market wants. He stated there were 330 lots in the Town that were downzoned when they were absorbed by the Town from the County. He said it was close~to $100,000 to build an EHU. He said the rental from an EHU was not going to encourage people to build an EHU, but a carrot. was needed for encouragement. He said that 35 houses were built a year and only 1 or 2 have Planning and Environmental Commission. 4 Minutes APPROVED SEPTEMBER 27, 7 999 EHU's. He stated serious measures needed to be taken to have the majority of houses have EHU's. He said 80% of the new homes built would net 20 EHU's a year. He said more site coverage and GRFA were needed, as well as being able to separate the EHU's, with a separate curbcut and driveway. He said a 5% site coverage increase was not enough. He stated a single-family home in East Vail sells for less than a half duplex in Edwards. He felt the market would come back if we can show people they can build what they want. He closed with saying that 20% site coverage was very inadequate. Galen Aasiand asked if the majority of the people in the Town of Vail like the character of the Town as it is, how would this jibe with that and questioned what was wrong with not being the most pricey real estate. Harry Gray suggested it being on a public ballot. He said there was a lot of tired old product and people couldn't replace homes the way they want. Tom Weber said-his biggest concern was enforcement and the more incentives would require more enforcement. He said there were not many incentives for people who live here, but rather for second homeowners. He asked, regarding the application procedure, if we would shut people down who don't comply with the life safety standards.. He said the number of inhabitants should not be removed and reasoning that it should not be what was appropriate for the. rieighborhood; but rather for fire exit issues. He said he was leery of an EHU zone district and it would be stronger if more incentives were added than some of the other zone districts. He said the development standards couldn't be left open, but it should be defined like a CC2 with what works generally with that use. Brian Doyon said his first priority was enforcement, since half these EHU's were not getting used that way. He thought that part of the affidavit should be that the inhabitant was working in the Town of Vaii or Eagle County. He said enforcement would bring about an abundance of housing. He said units need to be brought into conformance. He said if garage space was eliminated, we could get into the problem with all the "toys" and so if. garages were eliminated, storage space would need to be provided for the EHU. He said both parties should have the 250 and density and site coverage could be useful tools as good incentives. He thought an EHU zone district was a good idea. He said the Type II and conditional use permit should be kept. He said he agreed with Tom on the number of inhabitants: Galen Aasiand agreed with eliminating the garage. He said he was against changing the character of the Town. He said it was not a disadvantage to not be the most expensive place in the valley. He said he believed that EHU's need to be EHU's and a system needed to be set up so that people trust the system, without someone enforcing all the time. He felt the Town should allow applicants to remodel, without forcing them to put in an EHU. He said, similar to a conditional use, we need a continuing incentive, i.e., such as a portion of their taxes reduced or a ski pass, with a form brought yearly into Town. He said the cost was the main reason that people don't do employee housing and this ordinance would not change that. He felt it was unethical for the Town to change the rental units requirement and would alienate the existing owners. He felt rent should be at the market rate. Doug Cahill urged the Town to step up code enforcement. Russ Forrest stated that Kris Widlak would be doing enforcement. He stated that there was an enhanced relationship with the Police department and he was working on an affidavit with Tom Moorhead. Doug Cahill suggested an interview or a friendly survey and a lot of this can. be done within the building codes right now. He agreed with Harry Gray to put density where density is now. He said, regarding the new zone district, that it was important on looking on how best to fit it and .. what the needs were. Planning and Environmental Commission Minutes August 23, 1999 e APPROVED SEPTEMBER 27, 1999 - Chas Bernhardt said that this was not a local problem and if we are going to give away density and square footage, we need to enforce it. He said the regulations need to be strict for someone to purchase a unit, as there are now trustfunders living in EHU's. He said he wanted to see- the current regs geared towards that. He mentioned the Illegal units that come in to slap an EHU on them needed to be encouraged to be brought up to current health and safety standards. He said that health and safety was the issue. Dominic Mauriello clarified that only legal nonconforming units would be allowed to be . administratively restricted. He said people now are adding an EHU for the extra square footage. He said taking the garage requirement out was a real incentive, but as Brian pointed out, there needed to be storage. Chas Bernhardt suggested putting all EHU's into a pool allowing employees coming to Town to go to that register. He suggested coordinating with the registry so employers could change employees. He agreed with Diana Donovan to keep the quality and the housing zoning district should not be a blanketed permitted use. He said as aquasi-government body, we need to protect the rights of the residents. Diane Golden said she agreed with Diana, but was not at all comfortable with eliminating the garages. She agreed. with Tom to keep the number of inhabitants. She felt it was intrusive to homeowner to make them sign a legal document, but stated her frustration to approve an EHU and know it will not be used for that. John Schofield stated he was not sure what to do to provide incentives for EHU's. He said we needed to back up and see what we can really do to provide incentives. He asked, .beyond the economics, what was the hurdle we have to work on. He said he felt enforcement was critical, but we can't sit with a hammer on people. He thought a central clearing house was good and felt anyone granted an EHU should participate in that system. He felt EHU's needed to be dispersed I' throughout Town and not be concentrated. He suggested going to an additional type of EHU, without a kitchen requirement, so a bedroom could be rented in a home. Diane Golden suggested defining this new EHU as a "caretaker EHU." John Schofield said parking would be in line with everyone else and he was fine with eliminating the need for a conditional use permit. He.said to allow the 250's in addition to the EHU credit. Dominic Mauriello asked if one of the criteria should be inspections of the EHU, as it might prevent illegal conversions of EHU's and other types of space, however government coming into your home would not be what people would want. John Schofield suggested doing it in a reverse mode. He said, using the central clearinghouse system, an employee could report not having a unit rented to him. Diane Golden said incentives needed to be received continually. Brian Doyon suggested a Rec Pass or Parking Pass. He said when people bring in the paper for verification, .call 3 times to rent and if there is no answer, up goes a red flag. John Schofield said a sale of the deed restricted unit does make sense economically. Tom Weber said it just perpetuates the problem we now have and he would not be in favor of parts of houses being sold. Dominic Mauriello asked the PEC how they felt about a detached unit. Planning and Environmental Commission Minutes APPROVED SEPTEMBER 27, 1999 Chas Bernhardt said that this was not a local problem and if we are going to give away density and square footage, we need to enforce it. He said the regulations need to be strict for someone to purchase a unit, as there are now trustfunders living in EHU's. He said he wanted to see the ;` :: current regs geared towards that. He mentioned the Illegal units that come in to slap an EHU on them needed to be encouraged to be brought up to' current health and safety standards. He said that health and safety was the issue. Dominic Mauriello clarified that only legal nonconforming units would be allowed to be . administratively restricted. He said people now are adding an EHU for the extra square footage. He said taking the garage requirement out was a real incentive, but as Brian pointed out, there needed to be storage. Chas Bernhardt suggested putting all EHU's into a pool allowing employees coming to Town to go to that register. He suggested coordinating with the registry so employers could change employees. He agreed with Diana Donovan to keep the quality and the housing zoning district should not be a blanketed permitted use. He said as aquasi-government body, we need to protect the rights of the residents. Diane Golden said she agreed with Diana, but was not at all comfortable with eliminating the garages. She agreed with Tom to keep the number of inhabitants. She felt it was intrusive to homeowner to make them sign a legal document, but stated her frustration to approve an EHU and know it will not be used for that. John Schofield stated he was not sure what to do to provide incentives for EHU's. He said we needed to back up and see what we can really do to provide incentives. He asked, beyond the economics, what was the hurdle we have to work on. He said he felt enforcement was critical, but we can't sit with a hammer on people. He thought a central clearing house was good and felt anyone granted an EHU should participate in that system. He felt EHU's needed to be dispersed (. throughout Town and not be concentrated. He suggested going to an additional type of EHU, without a kitchen requirement, so a bedroom could be rented in a home. Diane Golden suggested defining this new EHU as a "caretaker EHU." John Schofield said parking would be in line with everyone else and he was fine with eliminating the need for a conditional use permit. He said to allow the 250's in addition to the EHU credit. Dominic Mauriello asked if one of the criteria should be inspections of the EHU, as it might prevent illegal conversions of EHU's and other types of space, however government coming into your home would not be what people would want. John Schofield suggested doing it in a reverse mode. He said, using the central clearinghouse system, an employee could report not having a unit rented to him. Diane Golden said incentives needed to be received continually. Brian Doyon suggested a Rec Pass or Parking Pass. He said when people bring in the paper for verification, .call 3 times to rent and if there is no answer, up goes a red flag. John Schofield said a sale of the deed restricted unit does make sense economically. Tom Weber said it just perpetuates the problem we now have and he would not be in favor of parts of houses being sold. Dominic Mauriello asked the PEC how they felt about a detached unit. Planning and Environmental Commission 6 Minutes APPROVED SEPTEMBER 27, 1999 Tom Weber said no, except for a detached garage with units above. John Schofield said not on smaller lots. Dominic Mauriello asked about allowing a separate curbcut and separate driveway. Doug Cahill said if the site allows it. Brian Doyon said to maintain the existing policy regarding detached units. He said owners needed to maintain the EHU. Dominic Mauriello asked about lowering the minimum lot size requirement, so that more of those lots could be developed with an EHU. John Schofield said taking the variance route gets an application reviewed. Doug Cahill agreed. Galen Aasland said both neighbors need to agree to come in. John Schofield said the "first-come first-serve" rule was not written and should be codified. 4. A request for a conditional use permit, to allow for the construction of a Type II employee housing unit, located at 3847 Lupine Drive /Lot 7, Block 1, Bighorn Subdivision First Addition. Applicant: Randy Nichols, represented by the Mulhern Group Planner: Allison Ochs TABLED UNTIL SEPTEMBER 13, 1999 5. A request for a minor subdivision, to vacate common lot lines to create a new lot, located at 2477, 2485, 2487, 2497 Garmisch Drive/ Lots 1-4, Block H, Vail Das Schone #2. Applicant: Town of Vail, represented by Nina Timm Planner: Allison Ochs TABLED UNTIL SEPTEMBER 27, 1999 Brian Doyon made a motion to table the above items to their respective dates. Chas Bernhardt seconded the motion. The motion passed by a vote of 7-0. 6. Information Update Russ Forrest mentioned that the TOV received a Lionhsead Master Plan award . He then invited the public to bring in any comments they might have. 7. Approval of August 9, 1999 minutes. Diane Golden made a motion for approval of the amended minutes. Doug Cahill seconded the motion. Planning and Environmental Commission 7 Minutes August 23, 1999 APPROVED SEPTEMBER 27, 1999 The motion. passed by a vote of 7-0. Doug Cahill made a motion to adjourn. Diane Golden seconded the motion. The motion passed by a vote of 7-0. The meeting adjourned at 4:50 p.m. Planning and Environmental Commission Minutes Attachment: E 11. ROLES OF THE REVIEWING BOARDS ~`~"'~ Planning and Environmental Commission: Action: The PEC is advisory to the Town Council. The PEC shall review the proposal for and make a recommendation to the Town Council on the compatibility of the proposed text changes for consistency with the Vail Comprehensive Plans and impact on the general welfare of the community. Staff: The staff is responsible for ensuring that all submittal requirements are provided. The staff advises the applicant as to compliance with the Zoning Regulations. Staff provides analyses and recommendations to the PEC and Town Council on any text proposal. Town Council: Action: The Town Council is responsible for final approval/denial on code amendments. The Town Council shall review and approve the proposal based on the compatibility of the proposed text changes for consistency with the Vail Comprehensive Plans and impact on the general welfare of the community. Design Review Board: Action: The DRB has NO review authority on code amendments. III. RECOMMENDATION The Community Development Department recommends approval of the proposed amendments to Chapter 13 of the Zoning Regulations subject to the following findings: 1. That the proposed regulations are consistent with the development objectives of the Town of Vail as stated in the Vail Land Use plan. 2. That the proposal is consistent and compatible with existing and potential uses and generally in keeping with the character of the Town of Vail. VI. SUMMARY OF POTENTIAL ZONING TEXT CHANGES Chapter 13, Employee Housing Deed Restrictions/Enforcement This proposal adds a provision requiring that EHUs be rented and not remain vacant for a period of 4 consecutive months. The existing compliance language is being removed so that violations of this chapter can be processed like any otherzoning violation. The current compliance statement provides for "publication" of the violation with the Housing Authority. The proposed language wilt aid in the enforcement of EHUs by establishing that they must be rented and allowing the Town to cite the owner when they are not Page 2 of 5 MEMORANDUM TO: Planning and Environmental Commission FROM:. Community Development DATE: September 13, 1999 SUBJECT: A request for a worksession for amendments to Title 12, Zoning with respect to Employee Housing Unit Standards, Minimum Lot Size Requirements in the Primary/Secondary and Two-Family Residential Zone Districts and Site Coverage Standards. Applicant: Town of Vail Planner: Dominic Mauriello I. DESCRIPTION OF THE REC~UEST On June 15, 1999 the Community Development Department presented to the Town Council some potential revisions to the Town Code having impact on the provision of employee housing in the Town's duplex zone districts, Two-Family Residential and Two-Family Primary/Secondary Residential. The Town Council gave staff the direction to move forward with the concepts presented. As part of the Vail Tomorrow and Common Ground processes the community stated that the Town needed to improve its incentives for private developers to create Employee Housing Units (EHUs}. Staff has identified some areas of the Zoning Regulations that may need to be modified in order to ensure that the Zoning Regulations are truly "promoting" employee housing rather than acting more as a disincentive. The intent of presenting this is to gauge whether the Town Council agrees that there may be areas that need to be addressed in the code and if staff should work to resolve these issues. The following is a list of what we believe to be disincentives to providing EHUs: • Requiring garage space for an EHU, where code does not require garage space for other dwelling units • Restricting the sale of a Type I and Type 11 EHU and requiring that it be a rental property • Taking away the right to do a "250" on older homes if an EHU GRFA credit is used • Not allowing enough site coverage to build the EHU on smaller lots • -Not providing GRFA credits for multiple-family EHUs (Type III) • Counting Type III EHUs as an impact on density Page 1 of 5 F:\EVER~'ONE\PEC\IviF.MOS199\FH~t eta t~nr ,r ly rrttvNnFVen k ROLES OF THE REVIEWING BOARDS Planning and Environmental Commission: Action: The PEC is advisory to the Town Council. The PEC shall review the proposal for and make a recommendation to the Town Council on the compatibility of the proposed text changes for consistency with the Vail Comprehensive Plans and impact on the general welfare of the community. Staff: The staff is responsible for ensuring that all submittal requirements are provided. The staff advises the applicant as to compliance with the Zoning Regulations. Staff provides analyses and recommendations to the PEC and Town Council on any text proposal Town Council: Action: The Town Counci! is responsible for final approval/denial on code amendments. The Town Council shall review and approve the proposal based on the compatibility of the proposed text changes for consistency with the Vail Comprehensive Plans and impact on the general welfare of the community. Design Review Board: Action: The DRB has ND review authority on code amendments. ~. III. RECOMMENDATION The Community Development Department recommends approval of the proposed amendments to Chapter 13 of the Zoning Regulations subject to the following findings: 1. That the. proposed regulations are consistent with the development objectives of the Town of Vail as stated in the Vail Land Use plan. 2. That the proposal inconsistent and compatible with existing and potential uses and generally in keeping with the character of the Town of Vail. VI. SUMMARY OF POTENTIAL ZONING TEXT CHANGES Chapter 13, Employee Housing 1. Deed Restrictions/Enforcement This proposal adds a provision requiring that EHUs be rented and not remain vacant for a period of 4 consecutive months. The existing compliance language is being removed so that violations of this chapter can be processed like any other zoning violation. The current compliance statement provides for "publication" of the violation with the Housing Authority. The proposed language will aid in the enforcement of EHUs by establishing that they must be rented and allowing the Town to cite the owner when they are not Pave 2 of 5 meeting these requirements. The current regulations are unclear as to the occupancy requirements. Additionally, the current reporting requirement provides that the owner provide a report of rental activity. This proposal requires a sworn affidavit from the owner. This will aid with the enforcement of EHUs. Language has been added to the purpose section allowing for the administrative creation of incentives and the development of the clearing house concept. Staff is currently developing plans for implementation of these concepts and will present these to the PEC at some point in the future. 2. Development Standards This proposal no longer includes a provision for detaching garages with EHUs on small lots at the direction of the PEC. A standard for occupancy has been added allowing no more than two persons per bedroom to occupy an EHU. 3. Application Procedure This section is proposed to be amended to allow existing dwelling units to be deed restricted administratively. Additionally, this section would allow legal nonconforming units to be deed restricted as long as they otherwise conform to the Uniform Building Code and can meet the Town's parking requirements. This will allow EHUs to be created without going through a lengthy review process and helps encourage the legalization of substandard dwelling units/lock-offs. Additionally, a provision has been added codifying the first come, first serve rule for Type Il EHUs. Additionally, any proposal for more than 250 sq. ft. of additional GRFA for an EHU shall require approval of all owners of the property. The proposal also includes waiving the DRB fees for a project. Other fee waivers can be developed administratively to encourage the development of EHUs. 4. Changes by EHU Type A. Type I (2~d unit allowed on duplex lots less than 15,000 sq. ft.) • Allowed to be sold separately from main residence (currently, both units on lot must be deed restricted to allow sale) • Allowed an additional 500 sq. ft. of GRFA (currently only allowed 250 sq. ft.) • Units allowed to apply for 250s regardless of EHU presence • Site coverage increased 5% and landscape area reduced 5% for lots with an EHU • Removal of age limitations • Removal of requirement that 50% of the parking be enclosed (all parking required on-site) B. Type II (3`d unit allowed on duplex lots 15,000 sq. ft.) • Allowed as a conditional use (no change) • Allowed to be sold separately subject to approval of property owners • Units allowed to apply for 250s regardless of EHU presence - Page 3 of 5 F-\FVFFY(lNF\PFC\MFM(lS\99\FHTI Si~nnr Maximum size increased to 1,200 sq. ft. (currently 900 sq. ft. limit) Removal of age limitations Removal of requirement that 50% of the parking be enclosed (all parking required on-site) C. Type III (rental unit in multiple-family, residential cluster)" • Provides a 500 sq. ft. GRFA credit (no credit currently exists) •- -Parking simplified to meet Chapter 10 requirements • Modified to include Type IV EHUs (Type IV category being removed) • Min./Max. sq. ft. modified to allow 300 sq. ft. minimum and 1,200 sq. ft. maximum for dwelling unit or 500 sq. ft. maximum for a dormitory style building • Proposed to not count as density (currently count as 0.5 of a dwelling unit and Type IV as 0.333 of a dwelling unit) • Removal of age limitations D. Type IV (multiple family, dormitory) • Eliminated as a category but rolled into Type 111 None exist today F. Type V (Hillside Residential - Spraddle Creek) • Removal of requirement that 50% of the parking be enclosed (all parking required on-site) G. Type Vl (New Type for projects like Vail Commons and Red Sandstone) • Allowed on any existing dwelling unit in the town • EHUs must be sold separately (they are for sale units, not rental) Effect of Proposed Changes on GRFA, Site Coverage, and Landscape Area Current Regulations Proposed Regulations 14,000 sq. ft. lot 14,000 sq. ft. lot (dwelling unit plus Type I EHU) (either DU + Type I EHU or 2 DUs + Type II EHU) GRFA: 3,500 sq. ft. (base) +425 sq. ft. (primary credit) +425 sq. ft. (EHU credit) +250 (EHU credit) 4,600 sq. ft. Site Coverage: 2,800 sq. ft. (max.) Landscape Area 8,400 sq. ft. (min.) 3,500 sq. ft. (base) +425 sq. ft. (primary credit) +425 sq. ft. (EHU credit) +500 sa. ft. (EHU credit) 4,850 sq. ft. 2,800 sq. ft. +700 sg. ft. (EHU credit) 3,500 sq. ft. (max.) 8,400 sq. ft. (min.) -700 sq. ft. (EHU credit) 7,700 sq. ft. (min.) Page 4 of 5 MEMORANDUM TO: Town Council FROM: Community Development Department DATE: July 1, 2003 SUBJECT: Ordinance No. 16, Series of 2003, a request for text amendments to Section 12-13-4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code, to amend the Type II EHU requirements and setting forth details in regard thereto. Applicant: Town of Vail Planner: Bill Gibson DESCRIPTION OF THE REQUEST The applicant, AMS Development, is proposing to amendments to Section 12-13- 4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code, to amend the Type II EHU requirements. Please refer to the attached staff memorandum to the Planning and Environmental Commission dated June 9, 2003, for a more detailed description of this request and additional related information. IL BACKGROUND At its June 9, 2003 public hearing, the Planning and Environmental Commission voted 6-1 to forward a recommendation of approval with conditions to the Town Council of the requested text amendment. The Commission's recommendation was based upon the review of the criteria noted in Section VI of the June 9, 2003, staff memorandum and the evidence and testimony presented, with the findings noted in Section VII of the March 24, 2003, staff memorandum. III. STAFF RECOMMENDATION The Community Development Department recommends that the Town Council deny Ordinance No. 16, Series of 2003, on first reading to amend Section 12- 13-4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code. Staffs recommendation is based upon the review of the criteria noted in Section V of the June 9, 2003, staff memorandum and the evidence and testimony presented. Should the Town Council choose to approve Ordinance No. 16, Series of 2003, on first reading, the Community Development Department recommends the Town Council makes the following findings: 1 ~. 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. IV. ATTACHMENTS Attachment A: Ordinance No. 16, Series 2003 Attachment B: Staff memorandum to PEC dated June 9, 2003 Attachment C: Applicant's letter dated June 13, 2003 2 Attachment: A ORDINANCE NO. 16 Series of 2003 AN ORDINANCE AMENDING SECTIONS 12-13-3 AND 12-13-4, VAIL TOWN CODE, TO ALLOW FOR THE SALE OR TRANSFER OF A TYPE II EMPLOYEE HOUSING UNIT IN THE SINGLE- FAMILY RESIDENTIAL (SFR), TWO-FAMILY RESIDENTIAL (R), TWO-FAMILY PRIMARY/SECONDARY RESIDENTIAL (PS) ,AND AGRICULTURE 8~ OPEN SPACE (A) DISTRICTS AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Planning and. Environmental Commission of the Town of Vail has held public hearings on the proposed amendments in accordance with the provisions of the Town Code of the Town of Vail; and WHEREAS, the Planning and Environmental Commission finds that the proposed amendments further the development objectives of the Town of Vail; and WHEREAS, the Planning and Environmental Commission of the Town of Vail has recommended approval of this text amendment at its June 9, 2003, meeting, and has submitted its recommendation to the Town Council; and WHEREAS, the Vail Town Council finds that the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and WHEREAS, the Vail Town Council finds that the amendments further the general and specific purposes of the Zoning Regulations; and WHEREAS, the Vail Town Council finds that the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. Ordinance No. 16, Series of 2003 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Sections 12-13-3 of the Vail Town Code shall hereby be amended as follows: (deletions are shown in °+r;U^ +"r^„^"additions are shown bold) G. Type II EHUs, Sold or Transferred Separately 1. Type II EHUs, sold or transferred separately, shall require approval of a conditional use permit in accordance with Chapter 12-16, Conditional Use Permits, Vail Town Code. 2. Type II EHUs, sold or transferred separately, shall be required a minimum of one enclosed parking space and adequate additional storage, as determined by the Planning and Environmental Commission. 3. Type II EHUs, sold or transferred separately, shall be physically and aesthetically integrated into a primary residence of the property. 4. Type II EHUs, sold or transferred separately, shall only be allowed on sites with adequate lot size, as determined by the Planning and Environmental Commission. follows: Section 2. Sections 12-13-4 of the Vail Town Code shall hereby be amended as (deletions are shown in °+r~~h;~#/additions are shown bold) Ordinance No. 16, Series of 2003 2 72-73-4: REQUIREMENTS BY EMPLOYEE HOUSING UNIT (EHU) TYPE EHU Zoning districts permitted by right or by conditional use Ownership/ Transference Additional GRFA' Additional Site Coverage /Reduced Landscape Area Garage Credit/Storage Requirement Parking Minimum/ Maximum GRFA of an EHU Density Type II Conditional The EHU may The EHU n/a All units shall Per 300 sq. ft. Allowed (sold or Use: be sold or is entitled be required a Chapter minimum. as third transferred Single- transferred to an minimum of 12-10 as a Maximum 25% of unit on separately) Family separately additional one enclosed dwelling total allowable property. Residential, from the unit 500 sq. ft. parking space. unit. GRFA for the site, Does not Two-Family it is GRFA Allowed 300 not to exceed count as Residential, associated credit. sq. ft. of 1,500 sq. ft. density. Primary/Sec with. additional ondary garage area Residential, for the EHU. Agriculture & Open All units shall Space be required a storage area in addition to normal closet space as determined by the Planning and Environmental Commission. Ordinance No. 16, Series of 2003 Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect 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. Section 4. 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. Section 5. The amendment of any provision of the Town Code 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 proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. Ordinance No. 16, Series of 2003 4 INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 1st day of July, 2003, and a public hearing for second reading of this Ordinance set for the 15th day of July, 2003, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Ludwig Kurz, Mayor ATTEST: Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 15th day of July, 2003. Ludwig Kurz, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance No. 16, Series of 2003 rJ Attachment: B MEMORANDUM TO: Planning and Environmental Commission FROM: Department of Community Development DATE: June 9, 2003 SUBJECT: A request for a recommendation to the Vail Town Council of proposed text amendments to amend Section 12-13-4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code, to amend the Type II EHU requirements and setting forth details in regard thereto. Applicant: AMS Development, Inc., represented by Greg Amsden Planner: Bill Gibson SUMMARY The applicant, AMS Development, Inc., represented by Greg Amsden is requesting a text amendment to Section 12-13-4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code, to amend the Type II EHU requirements. Based upon staffs review of the criteria in Section VI of this memorandum, the Community Development Department recommends that the Planning and Environmental Commission forward a recommendation of denial to the Town Council of the requested text amendments, subject to the findings noted in Section VII of this memorandum. 11. DESCRIPTION OF THE REQUEST The applicant, AMS Development, Inc., is proposing text amendments to Section 12-13- 4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code, to amend the Type II EHU requirements. Based upon discussions from the Planning and Environmental Commission's April 14, April 28, and May 12, 2003, public hearings, the applicant has revised the proposed text amendment application (see Attachment A). The applicant is now proposing two amendments to the Town's Type II EHU requirements: 1) to allow Type II EHUs to be sold or transferred separately and 2) to amend the maximum gross residential floor area (GRFA) limit from 1,200 sq. ft. to 25% of the total allowable GRFA for the site with a maximum of 1,500 sq. ft. The specific proposed text amendments are as follows: (deletions are shown in ~+ril.o +hrni inh~addltlonS are shown bold) 12-13-4: REQUIREMENTS BY EMPLOYEE HOUSING UNIT (EHU) TYPE EHU Zoning districts permitted by right or by conditional use Ownership/ Transference Additional GRFA' Additional Site Coverage /Reduced Landscape Area Garage Credit/Storage Requirement Parking Minimum/ Maximum GRFA of an EHU Density Type II Conditional Use: T"°T„~ ~uU-~ha;; The EHU is n/a Allowed 300 sq. Per Chapter 12-10 300 sq. ft. Allowed as Single-Family -seld-or entitled to an ft. of additional as a dwelling unit. minimum. third unit Residential, Two- ±~°^,~.,,~ `..~°rr°~ additional 500 ara a area 9 9 ~~98- 25% of the on Family ~~~ sq. ft. GRFA sum of the total property. Residential, t"°, ~GZ.,^..~,r," " `° credit. All units not GRFA and dit ll d Prima /Seconda ~' constructed with cre s a owe Does not ry Residential, a garage shall be for the site, but count as Agriculture & The EHU may required a under no circumstance density. Open Space be sold or minimum 75 sq. shall the size of transferred as ft. of storage area the EHU exceed a separate unit in addition to 1,500 sq. ft. on the normal closet property space. This 75 maximum. subject to sq. ft. shall be a approval of a credit for storage conditional only. use permit by the Planning and Environmental Commission. The EHU, if approved for resale, shall be both physically and aesthetically integrated into the primary- secondary structure under consideration. BACKGROUND IV. In September and December of 1992, the Town Council passed Ordinances 9 and 27, Series of 1992, to create Chapter 13 (Employee Housing) which provides for the addition of Employee Housing Units (EHUs) as permitted or conditional uses within certain zone districts. In April of 2000, the Town Council passed Ordinance 6, Series of 2000, to repeal and reenact this chapter and provide additional incentives for the creation of employee housing in Vail. Type II EHUs are allowed as a conditional use on properties with conforming lots sizes in the Single-Family Residential (SFR), Two-Family Residential (R}, Two-Family Primary/Secondary Residential (P/S), and Agriculture and Open Space (A) districts, which account for approximately 788 lots within the Town of Vail. Since 1994 the Town of Vail has approved more than 20 Type II EHUs on these properties. The Planning and Environmental Commission reviewed and discussed this proposal at its April 14, April 28, and May 12, 2003, public hearings. Based upon discussions from these previous public hearings, the applicant has revised the proposed text amendment application (see Attachment A). ROLES OF REVIEWING BODIES Planning and Environmental Commission: Action: The Planning and Environmental Commission is responsible for forwarding a recommendation of approval/approval with conditions/denial to the Town Council of a text amendment. The Planning & Environmental Commission shall consider the following factors with respect to the requested text amendment: 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and 5. Such other factors and criteria the Commission deems applicable to the proposed text amendment. Design Review Board: Action: The Design Review Board has NO review authority of a text amendment or conditional use permit, but must review any accompanying Design Review application. Town Council: Actions of Design Review Board or Planning and Environmental Commission may be appealed to the Town Council or by the Town Council. Town Council evaluates whether 3 or not the Design Review Board or Planning and Environmental Commission erred with approvals or denials and can uphold, uphold with modifications, or overturn the board's decision. The Town Council is responsible for final approval/approval with conditions/denial of a text amendment. The Town Council shall consider the following factors with respect to the requested text amendment: 1. The extent to which the text amendment furthers the genera! and specific purposes of the Zoning Regulations; and 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and 5. Such other factors and criteria the Commission and/or Council deem applicable to the proposed text amendment. Staff: The staff is responsible for ensuring that all submittal requirements are provided and plans conform to the technical requirements of the Zoning Regulations. The staff also advises the applicant as to compliance with the design guidelines. Staff provides a staff memorandum containing background on the property and provides a staff evaluation of the project with respect to the required criteria and findings, and a recommendation on approval, approval with conditions, or denial. Staff also facilitates the review process. V. APPLICABLE PLANNING DOCUMENTS Type II EHUs are allowed as conditional uses in the Single-Family Residentiai, Two- Family Residential, Two-Family Primary/Secondary Residential, and Agriculture and Open Space Districts. Town of Vail Zoning Regulations (Title 12 Vail Town Code) Chapter 12-1: Title, Purpose and Applicability (in part) 12-1-2: PURPOSE: A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. 4 Chapter 12-2: Definitions (in part) EMPLOYEE HOUSING UNIT (EHU): A dwelling unit which shall not be leased or rented for any period less than thirty (30) consecutive days, and shall be occupied by at least one person who is an employee. For the purposes of this definition "employee" shall mean a person who works an average of thirty (30) hours per week or more on a year round basis in Eagle County, Colorado. Article 12-6B: Single-Family Residential (SFR) district (in part) 12-6B-1: PURPOSE: The single-family residential district is intended to provide sites for low density single-family residential uses, together with such public facilities as may be appropriately located in the same district. The single-family residential district is intended to ensure adequate light, air, privacy and open space. for each dwelling, commensurate with single-family occupancy, and to maintain the desirable residential qualities of such sites by establishing appropriate site development standards. Article 12-6C: Two-Family Residential (R) district (in part) 12-6C-1: PURPOSE: The two-family residential district is intended to provide sites for low density single family or two-family residential uses, together with such public facilities as may be appropriately located in the same district. The two-family residential district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with single-family and two-family occupancy, and to maintain the desirable residential qualities of such sites by establishing appropriate site development standards. Article 12-6D: Two-Family Primary/Secondary Residential (P/S) district (in part) 12-6D-1: PURPOSE: The two-family primary/secondary residential district is intended to provide sites for single-family residential uses or two-family residential uses in which one unit is a larger primary residence and the second unit is a smaller caretaker apartment, together with such public facilities as may appropriately be located in the same district. The two-family primary/secondary residential district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with single-family and two-family occupancy, and to maintain the desirable residential qualities of such sites by establishing appropriate site development standards. Article 12-6E: Residential Cluster (RC) district (in part) 12-6E-1: PURPOSE: The residential cluster district is intended to provide. sites for single-family, two- family, and multiple-family dwellings at a density not exceeding six (6) dwelling units per acre, together with such public facilities as may appropriately be located in the same district. The residential cluster district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with residential occupancy, and to maintain the desirable residential qualities of the district by establishing appropriate site development standards. 5 Article 12-6F: Low Density Multiple-Family (LDMF) district (in part) 12-6F-1: PURPOSE: The low density multiple-family district is intended to provide sites for single- family, two-family and multiple-family dwellings at a density not exceeding nine (9) dwelling units per acre, together with such public facilities as may appropriately be located in the same district. The low density multiple-family district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with low density occupancy, and to maintain the desirable residential qualities of the district by establishing appropriate site development standards. Article 12-8A: Agriculture and Open Space (A) district (in part) 12-8A-1: PURPOSE: The Agricultural and Open Space District is intended to preserve agricultural, undeveloped, or open space lands from intensive development while permitting agricultural pursuits and low density residential use consistent with agricultural and open space objectives. Parks, schools, and certain types of private recreational facilities and institutions also are suitable uses in the Agricultural and Open Space District, provided that the sites of these uses remain predominantly open. Site development standards are intended to preclude intensive urban development and to maintain the agricultural and open space characteristics of the District. Chapter 12-13: Employee Housing (in part) 12-13-1: PURPOSE: The Town's economy is largely tourist based and the health of this economy is premised on exemplary service for Vail's guests. Vail's ability to provide such service is dependent upon a strong, high quality and consistently available work force. To achieve such a work force, the community must work to provide quality living and working conditions. Availability and affordability of housing plays a critical role in creating quality living and working conditions for the community's work force. The Town recognizes a permanent, year-round population plays an important role in sustaining a healthy, viable community. Further, the Town recognizes its role in conjunction with the private sector in ensuring housing is available. The Town Council may pursue additional incentives administratively to encourage the development of employee housing units. These incentives may include, but are not limited to, cash vouchers, fee waivers, tax abatement and in- kind services to owners and creators of employee housing units. The Town or the Town's designee may maintain a registry and create lists of all deed restricted housing units created in the Town to assist employers and those seeking housing. Vail Land Use Plan Chapter 11 -Land Use Plan Goa/s/Policies 1.1 Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 6 1.3 The quality of development should be maintained and upgraded whenever possible. 1.12 Vail should accommodate most of the additional growth in existing development areas (infill areas). 5.1 Additional residential growth should continue to occur primarily in existing, platted areas and as appropriate in new areas where high hazards do not exist. 5.3 Affordable employee housing should be made available through private efforts, assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 5.4 Residential growth should keep pace with the market place demands for a full range of housing types. 5.5 The existing employee housing base should be preserved and upgraded. Additional employee housing needs should be accommodated at varied sites throughout fhe community. Chapter VI -Proposed Land Use LDR Low Density Residential: This category includes single-family detached homes and two family dwelling units. Density of development within this category would typically not exceed 3 structures per buildable acre. Also within this area would be private recreation facilities such as tennis courts, swimming pools and club houses for the use of residents of the area. Institutional/public uses permitted would include churches, fire stations, and parks and open space related facilities. MDR Medium Density Residential: The medium density residential category includes housing which would typically be designed as attached units with common walls. Densities in this category would range from 3 to 14 dwelling units per buildable acre. Additional types of uses in this category would include private recreation facilities, private parking facilities and institutional/public uses such as parks and open space, churches, and fire stations. OS Open Space: Passive recreation areas such as greenbelts, stream corridors and drainageways are the types of areas in this category. Hillside which were classified as undevelopable due to high hazards and slopes over 40% are also included within this area. These hillside areas would still be allowed types of development permitted by existing zoning, such as one unit per 35 acres, for areas in agricultural zoning. Also, permitted in this area would be institutional/public uses. VI. CRITERIA AND FINDINGS The review criteria and factors for consideration for a request of a text amendment are established in accordance with the provisions of Chapter 12-3, Vail Town Code (Ordinance No. 4, Series 2002). 7 A. Consideration of Factors Regarding the Text Amendment: 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and, A Type II EHU is a conditional use within the Single-Family Residential (SFR), Two-Family Residential (R), Two-Family Primary/Secondary Residential (P/S), and Agriculture and Open Space (A) zone districts. The purpose of each of these zone districts is noted above in Section V of this memorandum. A purpose of each of these zone districts is to accommodate "low density" residential uses such as single-family and/ortwo-family residential dwelling units. Currently the provisions of Section 12-13-4, Requirements by Employee Housing Unit (EHU) Type, Vail Town Code, specifically allow a Type II EHUs as a third dwelling unit on a property and exclude a Type II EHUs from counting as density in these zone. districts, since Type II EHUs are currently intended to function as a "caretaker" type apartment that is subordinate and accessory to a principle residential dwelling unit. Staff believes that these proposed text amendments may alter the existing subordinate or accessory nature of Type II EHUs and elevate these units to a principle use of a property. Staff does believe that the revised text amendments are more consistent with the goals or objectives of the Single-Family Residential (SFR), Two-Family Residential (R), Two-Family Primary/Secondary Residential (P/S), and Agriculture and Open Space (A) zone districts than the applicant's subsequent text amendments proposal 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, Staff believes that the proposed text amendments specifically conform to the goals 1.1, 1.3, 1.12, 5.1, 5.3, 5.4, and 5.5 of the Vail Land Use Plan, as noted in Section V of this memorandum. However, a Type II EHU is a conditional use within the Single-Family Residential (SFR), Two-Family Residential (R), and Two-Family Primary/Secondary Residential (P/S) zone districts. Properties located within these zone districts are typically designated as Low Density Residential (LDR) by the Land Use Plan. A Type II EHU is also a conditional use within the Agriculture and Open Space (A) zone district, and properties within this district are typically designated as Open Space (OS) by the Land Use Plan. Staff believes that the proposed text amendments may alter the nature, intent, and character of Type II EHUs. Staff believes that these proposed text amendments may alter the existing subordinate or accessory nature of Type II EHUs and elevate these units to a principle use of a property. Staff believes that the proposed text amendments may convert Type II EHUs into a third dwelling unit and density for zoning purposes; which result in a "medium density" residential development rather than the "low density" residential development intended by the Town's current regulations. 8 The Vail Land Use Plan describes the "Low Density Residential" land use designation as residential development "typically not to exceed 3 structures per buildable acre" and the Open Space designation as recreation areas, agricultural uses, and limited residential development "such as one unit per 35 acres." Currently a lot within the Single-Family (SFR) Residential zone district meeting the minimum required lot size of 12,500 sq. ft. is permitted a residential density of approximately 3.5 units per acre by zoning. The addition of a Type II EHU functioning as a principle dwelling unit on the lot will increase the residential density of this property to approximately 7 units per acre. Similarly a lot within the Two-Family Residential (R) or Two-Family Primary/Secondary Residential (P/S) zone districts meeting the minimum required lot size of 15,000 sq. ft. is permitted a residential density of approximately 5.8 units per acre by zoning, and the addition of a Type II EHU functioning as a principle dwelling unit on the lot will increase the residential density of this property to approximately 8.7 units per acre. Staff does not believe that these increased residential densities are in conformance with the objectives of the "Low Density Residential" and "Open Space" Land use designations. Staff does not believe that the revised text amendments better implement and better achieve the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan. Staff believes that a proposal of this nature is more compatible with the development objectives of the Medium Density Residential (MDR) land use designation and the Residential Cluster (RC) and Low Density Multiple-Family (LDMF) zone districts. 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and, Staff does not believe that conditions have changed substantially since the adoption of Section 12-13-4, Vail Town Code;' that Section 12-13-4, Vail Town Code, is no longer appropriate; nor that Section 12-13-4, Vail Town Code, is inapplicable. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and, Sy essentially allowing a triplex type structures on duplex zoned properties, staff believes that the proposed text amendments may alter the nature, intent, and character of Type II EHUs in such a manner that does not provide a harmonious, convenient, workable relationship among land use regulations that are consistent with the Town of Vail master plans and development objectives. Staff believes that a proposal of this nature is more harmonious with the development objectives of the Medium Density Residential (MDR) land use designation and the Residential Cluster (RC) and Low Density Multiple-Family (LDMF) zone districts. 5. Such other factors and criteria the Commission and/or Council deem applicable to the proposed text amendment. 9 B. The Planning_and Environmental Commission shall make the following findings before forwarding a recommendation of approval for of a text amendment: That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and VII. 2. That the amendment furthers the general and specific purposes of the Zoning Regulations; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. STAFF RECOMMENDATION The Community Development Department recommends that the Planning and Environmental Commission forwards a recommendation of denial to the Vail Town Council for the proposed text amendments to Section 12-13-4, Requirements by Employee Housing Unit (EHU) Types, Vail Town Code, to amend the Type II EHU requirements and setting forth details in regard thereto. Staff's recommendation is based upon the review of the criteria in Section VI of this memorandum and the evidence and testimony presented, subject to the following findings: 1. That the amendments are not consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and are not compatible with the development objectives of the Town; and 2. That the amendments do not further the general and specific purposes of the Zoning Regulations; and 3. That the amendments promote the health, safety, morals, and general welfare of the Town, but do not promote the coordinated and harmonious development of the Town in a manner that do not conserve and enhance its natural environment and its established character as a resort and residential community of the highest quality. VIII. ATTACHMENTS A. Applicant's revised Letter of Request 10 MAY-27-2003 09:08 FROM:AMSDEN DAUIS &FOWLER 9704765637 T0: 9704792452 AMS Develo~~rrlcnt; Inc:. 500 S. Frontage l~c~aci last, Ste. 7.1.2 Vail, CO. 81657 May 27, 2003 'Town of Vail :Dept. of Community Development 75 South Frontage Road Vail, CU. 51657 R.E: Application for Text Amendment to Chapter 12-13-4 Requirements by Employee Hous.it~g Uiut Type Attachment: A ~~ Current Type 11 Employee Housing allows 'For a third unit, up to 1,2UU sq.ifi. in site, to be const~veted upon aprimary-secondary lot cvntainirlg more than 14,000 sq.ii;.. This unit is required to be an FHU and must be a rental unit under the current zoning regulations, The applicant is requetiting no additional density in this amendment. The applicant wishes to modify the code on lots exceeding 20,000 sq.ft, to allow for resale ofthe EHIJ, i1~ cons`tructed, and to increase the sve limitation to 25% of the sum ofthe total GRIyA and credits allowed, up to a maximum of 1,500 sq. ft.. REQUESTED AMENDMENT Type (I EHtJ 1. Uwnership/Transference Add the following language: "The EHUrnay he sold or transferred as a separate unit suhject to approval of a ca:ditional use permit by the Planning and Envirun»zental Co~runission. The EHU, if rsppraved far resale, shall be both physically and aesthetically integrated into the primary-serr~ndary structure. under consideration' The applicant' recommends that the Planning and Environmental Commission ("PF.C'~ establish a minimum lot size o~F20,000 sq.ft. as a guideline for consideration of such "resale" EHU's under the conditional use process. The establishment of this guideline shall allow PLC flexibility in consideration of each application a5 it applies to surrounding ;property types and uses. Vice (970)79-0337 ~stlc~~vail.net Fax (.870)1479-278 MRY-27-2003 09:08 FROM:AMSDEN DAVIS &FOWLER 9704760637 T0: 9704792452 P.3~3 Purpose Encourage and promote development of employee housing units by the private sector. This would provide a profit incentive to developers to construct additional EHLI's within the Town of Vail. Under current zoning code, there is no incentive to create the additional EHLJ on lots exceeding 14,000 squazc feet. 2. Gxragc/Storage )t2cyuirement Withdraw teat amendment request. 3. Maldmnm G12FA Amend the maximum G.RFA requirement for Type li EHU's i'ollUws: "On .F,HU's that intended fo be soli or transferred, llie maximtrn tize shall beZS% of the sum of the total C.RFA. and credits allowed for the site, but under no circumstance shall the size of the E1~1'CI exceed 1,500 sgfG." Purpose Diversify the occupant type in Vail's employee housing base. Larger unit size lends itself to more permanent occupancy, There is no current local's housing that addresses middle-incoane professionals (salespeople, attorneys, town planners, young doctors, etc.). This occupant type is important •to improving the lackluster local economy. Many local professionals desire to live in the Town ot'Vail, but much ofthe free-market housing is very dated. (age and floor plans), thus they migrate down valley looking for better selection. The 1.500 sq.ft. maximum would allow for a large 2-bedroom or moderate sized ~-bedroom, floor plan. Thank you far your time and consideration. Sincerely, AMS Developmen•l•, .inc. Gregory M. Amsden, President JUNI13-2003 12:51 FROM:RMSDEN DAVIS &FOL 70:9704792452 P.2~4 ~ Attachment: C tLMS DeveivpmenC, Inc. 500 S. 1~roi1C~.~;c Road Fast, St.e. 11~ Vail, GC>. SlEi.57 June 13, 2003 Town of Vai] Dept. of Community Aevelopmcnt 75 South rrontage Road ~V~ail, CO. 81657 RE: Application for T ext Amendment to Chapter 12-a 3-4 Requirements by Imployee Ho~LSing unit Type Current Type II Employee Housing allows for a third unit, up to 1,200 sq.tl:. in size, to be constructed upon aprimary-secondary lot containing more than 14,000 sq.#t.. This unit is required tq be an EHLJ and must ~be a rental unit under the current zoning regulations. The applicant is requesting the creation of asub-category of the Type 1I employee housing code, to be named Type IT-A EHU. This new category will not create additional density under the ea,isting employee code. The Type iI-A EHU shall be a conditional use andrP approved, shall allow i't~r resale of the EHU. Criteria shall be established for consideration of a Type IT-A EHU. The criteria shall include lot sire, unit size and an additional storage i Rt;QUESTED AMENDMENT Twc II-A EHLJ 1. Ownership/Transference "The EIlU may be sold yr transferred as a separate unit subject to approval of u conditional use permit by the Planning and environmental Cvmmissivn. The L'HU, if approved for resale, shall a. be both physically and aesthetically integrated into the primary-secondary structure under' consideration b. satisfy design review requirements established T Chapter 18.54 of [he Town of Vail ,Zoning Cede. The 1'lar~ning Commission shall util..iae those criteria set fortb in Section 4 below in considering each application for a Type II-A EHU. The criteria shall be used as guidelines in an effort to-allow the PEC flexibility in consideration of each application,as it applies to surrounding property types and uses. Voice (970)-479-0337 am,.gden~vail.nxl Faa~ (970)-9~79~278 JUN-13-2003 12:51 FROM:AMSDEN DAVIS &FOWLER 970476637 T0: 9704792452 P.3~4 Purpose Encourage and promote development of employee housing units by the private sector, This wotild •provide a profit iucentive •to developers to construct additional Type II EIlU's within the Town of Vail. Under current •roning code, there is no incentive to create the additional EHCT on lots exceeding 14,000 square feet. 2. Garage/Storage Rcyuirement The text shall be identical to Type II EIN code with. the following additional lang7uage, "In addition t~~ the enclosed garage area. a type II-A EHUshullhe required to provide a minimum of 75 sq:~t. of interior storage ureu. " Purpose Provide adequate storage area for local owner/occupant. The one-car garage limitation may not provide adequate storage facilities ,f'or the owner. In such cases, garages then become storage facilities and parking occurs outside the garage, becoming a visual deferent to curb appeal of the property. 3. Maximum CRFA "On EHU's that intend to be sold or transferred, the maximum size stroll be2S % of the sum of the total GRFA and credits allowed jot tlse site, but under no circwnstance shall Hie size of the EHU exceed 1,500 sgft.. " Purpose Diversify •the occupant type in Vail's employee housing base. Larger unit size lends itself to more pein~anent occupancy. There is no current local's housia~ that addresses middle-income professionals (salespeople, atl:orneys, town planners, young doctors, etc.). This occupant type is important to improvi~ the lackluster local oconomy. Many local professionals desire to live in the Town of Vail, but much of the free-markot housing is very dated (age and floor plans), thus they migrate down valley looking for better selection. The 1,500 sq.:ft. ma~cimum would allow for a large 2-bedroom or moderate sized 3-bedroom floor plan. 4. Criteria for Consideration of Conditional Use Permit for Type >Ci-A EAU a. Minimum lot size of approximately 21,000 sq.ft. (14,000 sq.ft. =minimum lot size for :P/S, 21,000 should be sufficient lot size to accommodate the additional EHtT). The 25,000 sq. 'ft. "net buildable" lot size requirement recommended by the PEC in it's June 9~' virtually eliminates application of this Toning in the neighborhoods that would predomincntly use it (West Vail area). Other areas in Vail Valley (EastVail,l3ooth Creek, Potato Patch, Vail Golfcourse, and Glen Lyon command higher resale values and private- sector developers will not sacrifice the high resale values of free market units to build a .lower resale EHU. The Town of Vail needs to look at the "overall" picture...the private sector is NOT building employee housing. under current codes. i1'the incentive is not provided., this trend JUN-13-2 03 12:51 FROM:AMSDEN DAVIS &FOWLER 9704768637 T0: 9704792452 P.4~4 will continue. Once again, the Type II-A EHU under consideration is not increasing density from the currently Type T.T FHU zoning code. Using "net buildable" criteria in the conditional use process is wniTadictory to the Primazy-Secondary Zone District. ~. The maximum size sha1J be 25% of the sum of the total GRFA and credits allowed for the site, but under no circumstance shat] the size of the EHU exceed 1,500 sq.ft.." ~I'y involvement with development alternatives on a vacant .lot at 2388 Garmisch Drive is a classic e~Cttmple o'i'why this amendment should be recommended ~to the Vail'lown Council: I,applied for this amendment Tor development of a Type TT-A unit (1425 sq.ft. 2-BR/2.S~bath) on a primary-secondary site at 2388 Garmisch Drive (21,528 sq.ft. lot surrounded by older 4-plex structures),1 have since terminated that development plan and will noW be constructing aprimary- s~condary residence without an EHU. Thank you for your time and consideration. F ORDINANCE NO. 14 SERIES OF 2003 AN ORDINANCE AUTHORIZING THE CREATION OF TIMBER RIDGE AFFORDABLE HOUSING CORPORATION AND THE MAKING OF A LOAN TO TIMBER RIDGE AFFORDABLE HOUSING CORPORATION IN CONNECTION WITH THE CORPORATION'S ACQUISITION OF TIMBER RIDGE APARTMENTS AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PROJECT AGREEMENT CONCERNING SUCH PROJECT, INCLUDING THEREIN THE TOWN'S MORAL OBLIGATION PLEDGE; RATIFYING ACTION PREVIOUSLY TAKEN AND APPERTAINING THERETO; DECLARING AN EMERGENCY RELATED HERETO AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Recitals. A. The Town is a municipal corporation duly organized and existing under the Charter adopted pursuant to Article XX of the Constitution of the State. B. The Town Council has determined to form Timber Ridge Affordable Housing Corporation (the "Corporation") under the provisions of the Colorado Nonprofit Corporation Act, Articles 121 through 137 of Title 7, Colorado Revised Statutes, as amended, for the purpose of acquiring ,operating, maintaining and developing multifamily rental housing projects. C. The Town Council .has been presented with the form of articles of incorporation and bylaws of the Corporation (the "Articles and Bylaws"). D. The Corporation proposes to acquire real and personal property constituting Timber Ridge Apartments within the Town to provided dwelling accommodations at rentals within the means of individuals or families of low or moderate income (the "Project"). E. Acquisition of the Project is to be financed in part from the proceeds of the Corporation's. Timber Ridge Affordable Housing Corporation Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the "Series 2003A Bonds") and its Timber Ridge Affordable -1- Housing Corporation Subordinate Housing Facilities Revenue Bonds, Series 2003B (the "Series Bonds," and, together with the Series 2003A Bonds, the "Bonds"). F. The Series 2003A Bonds will be issued pursuant to the terms of an Indenture of Trust dated as of July 1, 2003 (the "Series 2003A Indenture") between the Corporation and U.S. Bank National Association, as trustee. G. The Series 2003B Bonds will be issued pursuant to the terms of an Indenture of Trust dated as of July 1, 2003 (the "Series 2003B Indenture") between the Corporation and U.S. Bank National Association, as trustee). H. The Town and the Corporation propose to execute and deliver a Project Agreement dated as of July 1, 2003 (the "Project Agreement"), under the terms of which the Town shall agree to loan $1,000,000 to the Corporation to finance a portion of the cost of acquisition of the Project (the "Project Loan"), which loan shall be subordinate to the Corporation's obligation to pay the principal of and interest on the Bonds, and the Town agrees to restrict or otherwise designate funds in an amount not to exceed $ (the "Town Reserve") to be used as a reserve for the Bonds subject to the conditions stated in the Project Agreement and to consider additional appropriations to the Town Reserve from time to time, as provided in such Project Agreement . I. The Project Agreement provides that upon termination of the Project Agreement, the Town shall be entitled to acquire title to the Project without cost. J. The Project Loan shall be evidenced by a promissory note to be executed by the Corporation for the benefit of the Town (the "Note"). K. The proposed form of the Articles and Bylaws, the Project Agreement and the Note are on file with the Town Clerk. Section 2. Ratification. All actions heretofore taken (not inconsistent with the provisions of this Ordinance) by the Town Council and other officers of the Town relating to the formation of the Corporation and its acquisition of the Project for the purposes provided herein are ratified, approved and confirmed. Section 3. Approval of Corporation's Articles and B 1~. The Town hereby approves the organization of the Corporation for the purposes set forth in the Articles and Bylaws -2- and hereby approves the forms of such Articles and Bylaws as presented to the Town Council at this meeting. Section 4. Approval of Financing Documents. The terms of the proposed Proj ect Agreement and Note, in substantially the forms presented at this meeting, and the Town entering into the Project Agreement are hereby approved. Section 5. .Loan Approval. The Project Loan is hereby authorized in accordance with the terms of the Project Agreement and the Note. Section 6. Creation of Town Reserve and Moral Obligation Pledge. The Town hereby approves the creation of the Town Reserve in an amount not to exceed $ and instructs the Town's Finance Director to restrict or otherwise designate an amount for such purpose as described in the Project Agreement and the Town Council hereby agrees to consider, but shall not be obligated to approve, additional appropriations to replenish such Town Reserve from time to time. Section 7. Town Action. All actions taken by the members of the Town Council and other officials of the Town toward the organization of the Corporation, acquisition of the Project and making the Project Loan are hereby ratified and confirmed. The Mayor of the Town (the "Mayor") and the Town Clerk of the Town (the "Town Clerk") are hereby authorized and directed to execute and deliver such documents and to take all action necessary or reasonably required by the terms of the Project Agreement and the Note and to carry out, give effect to and consummate the transactions contemplated hereby and thereby, including the execution and delivery of the Project Agreement in substantially the form presented at this meeting, with such variations or revisions thereto deemed necessary by the Mayor. Execution of the Project Agreement by the Mayor shall be deemed to be final approval by the Town of the Project Agreement. Section 8. No Indebtedness of the Town. No provision of this Ordinance, the Note, the Bonds, the Series 2003A Indenture or the Series 2003B Indenture or any other instrument executed in connection therewith, shall be construed as creating an obligation on the part of the Town to pay the principal of, premium, if any, purchase price or interest on the Bonds, nor as creating an indebtedness or financial obligation on the part of the Town within the provisions or limitations of any statutory or constitutional provision of the laws of the State of Colorado. -3- Section 9. Corporation's Board of Directors. The Town hereby determines that in accordance with the Articles and Bylaws the Town Council, as constituted from time to time, shall serve as the Board of Directors of the Corporation. Section 10. Other Actions. The appropriate officers of the Town are hereby authorized to execute and deliver for and on behalf of the Town, any or all additional certificates, acknowledgments, documents and other papers and to perform all other acts they may deem necessary or appropriate in order to implement and carry out the matters authorized in this Ordinance and in any resolution of the Corporation. Section 11. Emergency Declaration. Acquisition and preservation of the Project as an employee housing facility will benefit the public health and welfare and that the opportunity to acquire the Project is limited in time and shall expire prior to the adoption of by the Town of anon- emergency ordinance, and that financing terms making the Project acquisition and preservation possible are limited in duration, the Council hereby declares an emergency exists requiring the immediate adoption of this Ordinance. Section 12. Severability. If any one or more sections, sentences, clauses or parts. of this Ordinance shall for any reason be held invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, but shall be confined in its operation to the specific sections, sentences, clauses or parts of this Ordinance so held unconstitutional or invalid, and the inapplicability and invalidity of any section, sentence, clause or part of this Ordinance in any one or more instances shall not affect or prejudice in any way the applicability and validity of this Ordinance in any other instances. Section 13. Repealer. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, heretofore repealed. Section 14. Disposition of Ordinance. This Ordinance, as adopted by the Town Council, shall be numbered and recorded by the Town Clerk in the official records of the Town. The adoption and publication shall be authenticated by the signatures of the Mayor, or Mayor Pro Tem, and Town Clerk, and by the certificate of publication. -4- A) Section 15. Effective Date. This ordinance shall be in full force and effect immediately upon final passage. INTRODUCED, READ AND APPROVED AS AN EMERGENCY ORDINANCE by a vote of to this 1St day of July, 2003 and ordered published in full in Vail Daily, a newspaper of general circulation in the Town of Vail, on or prior to the tenth day hereafter. Ludwig Kurz, Mayor ATTEST: Lorelei Donaldson, Town Clerk Town of Vail, Colorado -5- Matt Mire - ProjeciAgreemenv2.doc -- Page 1 7 ~ 1 ~ 1 ~ ~ .DRAFT DATED JUNE 25, 2003 G~~ /~~ C~~ TIMBER RIDGE AFFORDABLE HOUSING PROJECT PROJECT AGREEMENT THIS PROJECT AGREEMENT (the "Agreement") is made as of July 1, 2003, by and between TIMBER RIDGE AFFORDABLE HOUSING CORPORATION, a Colorado nonprofit corporation (the "Corporation") and the TOWN OF VAIL, COLORADO (the "Town"). RECITALS: A. The Corporation has been organized under the Colorado Revised Nonprofit Corporations Act to acquire property in order to provide affordable housing facilities, for the benefit of the Town and its inhabitants. B. The Corporation shall issue its Timber Ridge Affordable Housing Corporation Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the "Series 2003A Bonds") in an aggregate principal amount not to exceed $20,000,000 and its Timber Ridge Affordable Housing Corporation Subordinate Housing Facilities Revenue Bonds, Series 2003B (the "Series 2003B Bonds," and together with the Series 2003A Bonds, the "Bonds") in an aggregate principal amount not to exceed $1,500,000 for the purpose of financing a portion of the acquisition cost of "Timber Ridge Apartments" located within the boundaries of the Town (the "Project") on the property described in Exhibit A hereto, to provide dwelling accommodations for employee's living and working within the Town and the County. C. The Town Council of the Town (the "Town Council") has determined to loan certain funds to the Corporation in order to assist in financing the acquisition cost of the Project for the public purpose of preserving the Project as an affordable housing resource for the community. D. Repayment of such loan. shall be governed by the terms of this Agreement and a promissory note the form of which is attached hereto as Exhibit B (the "Note") to be executed by the Corporation for the benefit of the Town. E. The Series 2003A Bonds shall be issued pursuant to an Indenture of Trust dated as of July 1, 2003 (the "Series 2003A Indenture") between the Corporation and U.S. Bank National Association, as trustee (the "Series 2003A Trustee"). F. The Series 2003B Bonds shall be issued pursuant to an Indenture of Trust dated as of July 1, 2003 (the "Series 2003B Indenture," and together with the Series 2003A Indenture, the "Indentures") between the Corporation and U.S. Bank National Association, as trustee (the "Series 2003B Trustee"). \\\DE - 86736/1 - 140308 vi Matt Mire - ProjectAgreemenv2.doc Page 2 I I G. The Series 2003A Bonds, the Series 2003B Bonds and any Additional Bonds issued under the Indentures are referred to hereinafter as the "Bonds." H. Each of the Indentures provides for the creation of a "Bond Reserve Fund," to be funded in the amount of the "Bond Reserve Requirement" as defined in the respective Indentures. I. In the event either of the Bond Reserve Fund is not funded at the required. Bond Reserve Requirement by and of each year, the Series 2003A Trustee or the Series 2003B Trustee, as the case may be, shall notify the Tawn Manager of any deficiency and, pursuant to this Agreement, the Town Council has agreed to replenish the respective Bond Reserve Fund to the extent provided herein. H. In the event the Town Council agrees, or has previously agreed as provided herein, to replenish the Bond Reserve Fund such appropriation shall be treated as an additional loan by the Town pursuant to the terms set forth in this Agreement. All capitalized terms used herein, unless otherwise defined, shall have the meanings ascribed thereto in the Series 2003A Indenture. TERMS For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Town and the Corporation, on behalf of themselves and their respective successors and assigns, agree as follows: Section 1. Project Operation. The Corporation hereby covenants and agrees to operate the Project at standards required to provide decent, safe, and sanitary housing facilities at reasonable rental rates, in a sound and economical manner. Nothing herein or in any resolutions of the Town shall be interpreted to require the Town to undertake responsibility for operation of the Project. The Corporation shall comply with all Environmental Laws in connection with the operation and use of the Project. No Hazardous Materials are or will be discharged from the Project, directly or indirectly, except as authorized by any applicable governmental laws. "Environmental Laws" means the Comprehensive Environmental Response, Compensation and Liability Act of 1976 (CERCLA), 42 U.S.C. §§ 9601 et seq.; the Hazardous Substances Transportation Act, 49 U.S.C. §§ 5101 et sec.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et sue.; the Resource Conservation and Recovery Act (RCRA), as amended, 42 U.S.C. §§ 6901 et seq.; the Clean Water Act, 33 U.S.C. §§ 1251 et seq.; the Clean Air Act, 42 U.S.C. §§ 7401 et sec.; the Colorado Hazardous Waste Act, llA C.R.S. § 25-15-101 et seg; the Colorado Radiation Control. Act, 11A C.R.S. § 25-11-101 et se ;the Colorado Underground Storage Tanks Act, 11A C.R.S. § 25-18-101 et sec; the Colorado Air Quality Control Act, 11A VAADE - 86736/1 - #137327 vl 2 G IF Matt Mire - ProjectAgreemenv2.doc Page 3 C.R.S. § 25-7-101 et sec.; the Colorado Water Quality Control Act, 11A C.R.S. § 25-8-101 et sue.; any other federal or state statutes or city or county ordinances regulating the generation, storage, containment or disposal of any Hazardous Material or providing for the protection, preservation or enhancement of the natural environment; any rules or regulations promulgated pursuant to any of the foregoing statutes or ordinances; and any amendments, modifications or supplements of any such statutes, ordinances, rules or regulations. "Hazardous Materials" means any substances defined as "hazardous substances," "pollutants," "contaminants," "hazardous materials," hazardous wastes," or "hazardous or toxic substances" in any Environmental Law. The Corporation hereby agrees to pay, defend, indemnify and save the Town, the members of the Town Council, its mayor, officers, attorneys, employees, agents, accountants and staff, and the Trustee (collectively, the "Indemnified Parties") harmless from and against all liabilities, losses, damages, costs, expenses (including attorneys' fees), causes of action (whether in contract, tort or otherwise), suits, claims, demands and judgments of every kind, character and nature whatsoever arising out of or related to the Corporation's acquisition, equipping, renovation, improving and installation of the Project and during such period as the Corporation shall utilize the Project (collectively referred to herein as the "Liabilities"), including, without limitation, (1) any injury to or death of any person or damage to property in or upon the Project or growing out of or connected with the use, nonuse, condition or occupancy of the Project or any part thereof; or (2) violation by the Corporation of any law, ordinance or regulation affecting the Project or any part thereof or the utilization, occupancy or use thereof. The provisions of this paragraph shall not be available to any Indemnified Person who personally causes or contributes to any such Liabilities by reason of his or her own gross negligence or willful misconduct. Section 2. Proiect Loan. The Town hereby agrees to lend to the Corporation $],000,000 to assist in the financing of the acquisition of the Project (the "Project Loan") and the Corporation hereby agrees to borrow such amount for such purpose. The Project Loan shall be evidenced by the Note, which Note shall bear interest at the rate of LS% per annum. Payment of principal of and interest on the Project Loan shall be payable solely from Project revenues and such payments shall be subordinate to the Corporation's obligation to pay the principal of and interest on the Series 2003A Bonds and on the Series 2003B Bonds as the same shall come due. Payments on the Project Loan shall be made no more frequently than semi-annually on the business day nest succeeding the payment of the principal, if any, and interest on the Series 2003B Bonds as the same shall come due. Section 3. Bond Reserve Fund Advance. The Town hereby agrees to restrict or otherwise designate an amount equal to the total Bond Reserve Requirements for the Series 2003A Bonds and the Series 2003B Bonds (the "Town Reserve) and, within five business days of the receipt of written notice from the Series 2003A Trustee or the Series 2003B Trustee stating that an amount has been drawn from a Bond Reserve Fund, the Town's Finance Director is authorized to replenish the amount drawn from the respective reserve fund up to an aggregate amount not to exceed $ In the event any or all of the Town Reserve is used to restore any amounts expended from the Bond Reserve Funds, the Town Manager shall ask the Town \\\DH - 86736/1 - # 137327 cl Matt Mire - ProjectAgreemenv2.doc Page 4 Council, and the Town Council hereby agrees to consider, but is not obligated to, appropriate moneys to replenish the Town Reserve from any legally available source. The Town Council may determine in its sole discretion, but shall never be required, to make any appropriation so requested. Nothing provided in this Section shall create or constitute a debt, liability or multiple fiscal year financial obligation of the Town. Any appropriation to replenish a Bond Reserve Fund shall constitute a loan to the Corporation in an amount equal to such advance. Such advance shall bear interest until repaid at an interest rate of 1.5% per annum. Payments on any reserve advance shall be made no more frequently than semi-annually on the business day next succeeding the payment of the principal, if any, and interest on the Series 2003B Bonds as the same shall come due. Section 4. Town Benefit. The Corporation covenants and agrees that all activities of the Corporation shall be undertaken for the benefit of the Town. Upon termination of this Agreement, the Town shall be entitled to acquire title to the Project without cost. ~ Section 5. Right to Acquire. The Town is hereby granted the right to obtain, at any time, fee title and exclusive possession of all the Project financed by the Bonds free from ~ liens and encumbrances created by the Corporation related to the Bonds, but subject to Permitted Exceptions (as defined below), and any additions to such property, by (i) placing into escrow an ii amount sufficient to defease the Bonds and any obligations then owing the Bank or the Alternate ', Bank under the Credit Agreement, (ii) paying the reasonable costs incident to the defeasance, and (iii) complying with all other requirements of the Indentures. I, Section 6. Unencumbered Title. The Corporation hereby agrees that during any period amounts are owed to the Town hereunder it shall not permit any encumbrance of the Project other than "Permitted Exceptions" as defined in the Deed of Trust, Financing Statement and Assignment of Rents and Revenues made by the Corporation for the Benefit of the Credit I, Bank, without the prior written consent of the Town. Section 7. Default Rights. If pursuant to Article VII of the Series ', 2003A Indenture, the Series 2003A Trustee declares the principal of any Series 2003A Bonds '~ then outstanding to be due and payable and any foreclosure proceeding or other action is commenced under the Credit Agreement which could lead to the sale or other disposition of the property pledged thereunder, the Town is hereby granted an exclusive option to purchase all such property (including the Project), for the amount of the outstanding Bonds and any additional amounts owing under the Credit Agreement and accrued interest to the date of default. The '~, Town shall have not less than 90 days from the date it is notified by the Trustee of such action in which to exercise the option, and not less than 90 days from the date it exercises the option to purchase the property. The Bank or Alternate Bank or other parties responsible for commencing any such foreclosure proceeding or other action shall be required to take any action necessary, including submission of requests for continuance of foreclosure to the Public Trustee of Eagle !, County, Colorado, in order to ensure that the Town has the full 90 day period referred to herein to exercise its option (which option shall be exercised by giving written notice of such exercise to the Trustee and the Corporation) and purchase the Project and such other property, including !, ensuring that the foreclosure sale does not occur prior to the expiration of the 90 day period \UDE - 86736/1 - # 137327 v 1 4 Matt Mire - ProjectAgreemenv2.doc Page 5 __ F €: w t referred to herein. Nothing herein shall be construed to create any obligation of the Town to cure any Event of Default. In the event that the Bank or Alternate Bank's loan documents recorded in the records of the Clerk and Recorder of Eagle County, Colorado prior to this Agreement (or any replacement thereof), is foreclosed, either through public trustee's sale or judicial foreclosure, then upon compliance with the provisions of this Section 7 and expiration of all cure and redemption periods provided for under this Agreement or by statute, (i) this Agreement shall terminate and be of no further force or effect; (ii) neither the Town nor the Corporation shall have any right, title or interest in and to the Project arising out of this Agreement; (iii) any provisions of this Agreement permitting the Town to acquire title to the Project shall be void and of no force or effect; and (iv) the purchaser of title to the Project shall take title free and clear of this Agreement. Section 8. Indenture Rights; Approval of Town. The Corporation hereby covenants and agrees that the provisions of the Indentures granting any rights to the Town shall not be amended or modified without the consent of the Town. By execution hereof, the Town hereby consents to the provisions of the Indentures relating to the rights of the Town. Section 9. Consolidation or Merger. The Corporation hereby covenants and agrees that during the term of this Agreement it will maintain its corporate existence, will continue to be a nonprofit corporation duly qualified to do business in the State of Colorado, will not merge or consolidate with any person unless it first obtains the written consent of the Town. Section 10. Prohibition on Transfer. The Corporation hereby covenants and agrees that during the term of this Agreement it shall not sell, transfer, assign or lease (other than leases in the ordinary course of business for a period not greater than 24 months) all or any portion of the Project without the prior written consent of the Town. Section 11. Performance of Covenants. The Corporation hereby agrees to execute, acknowledge and deliver such documents as are reasonably requested by the Town to evidence any loan made hereunder and to execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered such instruments as the Town may reasonably require for the better assuring, transferring, pledging and hypothecating unto the Town all its rights and benefits hereunder. Section 12. Term. This Agreement shall terminate on the date upon which the Town Loan and any other advances hereunder have been paid an on which date no Bonds remain outstanding under the Indentures. Section 13. Burden on Property. This Agreement is a burden upon and runs with the property described in Exhibit A hereto and is binding upon the Corporation and upon all ~~ '~ persons or entities with any right, title or interest to such property or any part thereof. S ~' VAADE - 86736/7 - #137327 v I I' (" r. [: ~ Matt Mire - ProjectAgreemenv2.doc ~ Page 6 IN WITNESS WHEREOF, the undersigned have hereunto set their hand as of the day and year first mentioned above. TOWN OF VAIL, COLORADO TIMBER RIDGE AFFORDABLE HOUSING CORPORATION By: By: Mayor President [SEAL] [SEAL] ATTEST: ATTEST: Town Clerk Secretary IN CONSIDERATION OF THE TOWN'S LOAN MADE HEREUNDER TO THE ~ ii CORPORATION, U.S. BANK NATIONAL ASSOCIATION HEREBY CONSENTS AND ~~~ AGREES TO THE PROVISIONS OF THIS AGREEMENT, INCLUDING WITHOUT '~, LIMITATION THOSE RIGHTS SET FORTH IN SECTIONS 5 AND 7 HEREOF. ~„ I, U.S. BANK NATIONAL ASSOCIATION Title: i I ~( I' I ~; it I 6 I VAADE - 86736/1 - #137327 vl Matt Mire - ProjectAgreemenv2.doc STATE OF COLORADO ) ss. CITY AND COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this _ day of July, 2003 by as President, on behalf of TIMBER RIDGE AFFORDABLE HOUSING CORPORATION, a Colorado nonprofit corporation. WITNESS my hand and official seal. My Commission expires: [SEAL] Notary Public STATE OF COLORADO ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this _ day of July, 2003 by , as Mayor, on behalf of the TOWN OF VAIL, COLORADO. WITNESS my hand and official seal. My Commission expires: [SEAL] Notary Public Page 7 -- -- -- i Matt Mire - ProjectAgreemenv2.doc Page 8 EXHIBIT A Description of Timber Ridge Protect Site o The following real property and all buildings and improvements, and fixtures or ~'i appurtenances, now or hereafter erected thereon: VAADE - R6736/ I - # 137327 v 1 A- l Matt Mire - ProjectAgreemenv2.doc __ i EXHIBIT B Form of Promissory Note Page 9 I' I A-1 \\\DE - R6736/1 - # 137327 v I II li [i Matt Mire -Bylaws-V2.doc Page 1 DRAFT DATED JUNE 25, 2003 BYLAWS OF TIMBER RIDGE AFFORDABLE HOUSING CORPORATION (Adopted July 7, 2003) Matt Mire -Bylaws-V2.doc Page 2 TABLE OF CONTENTS i~ I PaEe I ARTICLE I OFFICES I 1 Section 1.1 Business Offices. 1 Section 1.2 Registered Office.. 1 ARTICLE II MEMBERS 1 Section 2.1 No Members. 1 ARTICLE III BOARD OF DIRECTORS 1 Section 3.1 General Powers. 1 Section 3.2 Number, Election, Tenure and Qualifications. 1 Section 3.3 Vacancies 1 Section 3.4 Regular Meetings. 2 Section 3.5 Special Meetings. 2 Section 3.6 Notice. 2 Section 3.7 Presumption of Assent. 2 Section 3.8 Quorum and Voting. 2 Section 3.9 Compensation. 3 b Section 3.10 Executive and Other Committees. 3 Section 3.11 Meetings by Telephone. 3 Section 3.12 [Action Without a Meeting: 3 ARTICLE IV OFFICERS AND AGENTS 3 Section 4.1 Number and Qualifications. 3 Section 4.2 Election and Term of Office. 3 Section 4.3 Compensation. 4 Section 4.4 Removal. 4 Section 4.5 Vacancies. 4 Section 4.6 Authority and Duties of Officers. 4 Section 4.7 Surety Bonds. 5 ARTICLE V INDEMNIFICATION 5 Section 5.1 Definitions. 5 Section 5.2 Right to Indemnification. 6 Section 5.3 Prior Authorization Required. 7 Section 5.4 Success on Merits or Otherwise. 7 Section 5.5 Advancement of Expenses. 7 ~ Section 5.6 Payment Procedures. 8 Section 5.7 Insurance. 8 Section 5.8 Right to Impose Conditions to Indemnification. I 8 is Section 5.9 Other Rights and Remedies. 9 Section 5.10 Applicability; Effect. 9 Section 5.11 Indemnification of Agents. 9 it Section 5.12 Savings Clause; Limitations. 9 ARTICLE VI MISCELLANEOUS 9 ~ Section 6.1 Account Books, Minutes, Eta [ 9 2 I i ..,..~,~ _ .~._. .. ~., . ~ ~ m. ,~-~ ,<~~--- E -. Matt Mire -Bylaws-V2.doc r-- _ _ - - --- - - ---- I ~! Section 6.2 Fiscal Year. I Section 6.3 Conveyances and Encumbrances. Section 6.4 Designated Contributions. Section 6.5 Conflicting Interest Transactions. ~ Section 6 6 Non-Liabili For Debts ty Section 6.7 [References to Internal Revenue Code. Section 6.8 Amendments. Section 6.9 Severability. 10 10 10 10 11 11 ll 11 3 € Matt Mire -Bylaws-V2.doc Page 4 BYLAWS OF timber RIDGE AFFORDABLE HOUSING CORPORATION ARTICLE I OFFICES Section 1.1 Business Offices. The principal office of the corporation shall be located within the Town of Vail., Colorado. The corporation may have such. other offices, either within or outside Colorado, as the board of directors may designate or as the affairs of the corporation may require from time to time. Section 1.2 Registered Office. The registered office of the corporation required by the laws of the State of Colorado governing nonprofit corporations to be maintained in Colorado may be, but need not be, the same as the principal office if in Colorado, and the address of the registered office may be changed from time to time by the board of directors or by the officers of the corporation. ARTICLE II MEMBERS Section 2.l No Members. The corporation shall have no members. ARTICLE III BOARD OF DIRECTORS Section 3.1 General Powers. The business and affairs of the corporation shall be managed by its board of directors, except as otherwise provided in the laws of the State of Colorado, the articles of incorporation or these bylaws. Section 3.2 Number Election Tenure and Qualifications. The board of directors of the corporation shall consist of the members of the Town Council of the Town of Vail, Colorado (the "Town Council"), and each members term of office shall be coterminous with his or her term of office as a council member. 4 Matt Mire -Bylaws-V2.doc Page 5 Section 3.3 Section 3.4 Regular Meetings. A regular annual meeting of the board of directors shall be held during the month of November at the time and place determined by the board, for the purpose of electing officers and for the transaction of such other business as may come before the meeting. The board of directors may provide by resolution the time and place for the holding of additional regular meetings. Section 3.5 Special Meetings. Special meetings of the board. of directors may be called by or at the request of the president or any two directors. The person or persons authorized to call special meetings of the board of directors may fix any place as the place for holding any special meeting of the board called by them. Section 3.6 Notice. Notice of each meeting of the board of directors stating the place, day and hour of the meeting shall be given to each director at the director's business address at least five days prior thereto by the mailing of written notice by first class, certified or registered mail, or at least two days prior thereto by personal delivery of written notice or by telephonic, telegraphic, telex or facsimile notice (and the method of notice need not be the same as to each director). If mailed, such notice shall be deemed to be given when deposited in the United States mail, with postage thereon prepaid. If telegraphed, such notice shall be deemed to be given when the telegram is delivered to the telegraph company. If transmitted by telex or facsimile, such notice shall be deemed to be given when the transmission is completed. Any director may waive notice of any meeting before, at or after such meeting. The. attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any meeting of the board of directors need be specified in the notice or waiver of notice of such meeting unless otherwise required by statute. Section 3.7 Presumption of Assent. A director of the corporation who is present at a meeting of the board of directors at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless such director's dissent shall be entered in the minutes of the meeting or unless the director shall file a written dissent to such action with the person acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the secretary of the corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action. Section 3.8 Quorum and Voting. A majority of the directors shall constitute a quorum for the transaction of business at any -- Matt Mire -Bylaws-V2.doc Page 6 meeting of the board of directors, and the vote of a majority of the directors present in person at a meeting at which a quorum is present shall be the act of the board of directors. If less than a quorum is present at a meeting, a majority of the directors present may adjourn the meeting from time to time without further notice other than an announcement at the meeting, until a quorum shall be present. No directors may vote or act by proxy at any meeting of directors. Section 3.9 Compensation. Directors shall not receive compensation for their services as such, although the reasonable ~' expenses of directors of attendance at board meetings may be paid or reimbursed by the corporation. Directors shall not be disqualified to receive reasonable compensation for services rendered to or for the benefit of the corporation in any other capacity. Section 3.10 Executive and Other Committees. By one or more resolutions adopted by a majority of the directors then in office, the board of directors may designate from among its members an executive committee and one or more other committees, each of which, to the extent provided in the resolution establishing such committee, shall have and may exercise all of the authority of the board of directors, except as prohibited by statute. The delegation of authority to any committee shall not operate to relieve the board of directors or any member of the board from any responsibility imposed by law. Rules governing procedures for meetings of any committee of the board shall be as established by the board of directors, or in the absence thereof, by the committee itself. Section 3.11 Meetings by Telephone. Members of the board of directors or any committee thereof may participate in a meeting of the board or committee by means of conference telephone or similar communications equipment by which all persons participating in the meeting can hear each other at the same time. Such participation shall constitute presence in person at the meeting. Section 3.12 Action Without a Meeting. A.ny action required or permitted to be taken at a meeting of the directors or any committee thereof may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the directors or committee members entitled to vote with respect to the subject matter thereof. Such consent (which may be signed in counterparts) shall have the same force and effect as a unanimous vote of the directors or committee members. ARTICLE IV OFFICERS AND AGENTS Section 4.1 Number and Qualifications. The elected officers of the corporation shall be a president, one or more vice-presidents, a secretary and a treasurer. The board of directors may also appoint such other officers, assistant 6 Matt Mire -Bylaws-V2.doc Page 7 officers and agents, including an executive director, a controller, assistant secretaries and assistant treasurers, as it may consider necessary. One person may hold more than. one office at a time, except that no person may simultaneously hold the offices of president and secretary. Officers need not be directors of the corporation. All officers must be at least eighteen years old. Section 4.2 Election and Term of Office. The elected officers of the corporation shall be elected by the board of directors at each regular annual meeting. If the election of officers shall not be held at such meeting, such election shall be held as soon as convenient thereafter. Each officer shall hold office until the officer's successor shall have been duly elected and shall have qualified, or until the officer's earlier death, resignation or removal. Section 4.3 Compensation. The compensation of the officers, if any, shall be as fixed from time to time by the board of directors, and no officer shall be prevented from receiving a salary by reason of the fact that such officer is also a director of the corporation. Section 4.4 Removal. Any officer or agent may be removed by the board of directors whenever in its judgment the best interests of the corporation will be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Election or appointment of an officer or agent shall not in itself create contract rights. Section 4.5 Vacancies. Any officer may resign at any time, subject to any rights or obligations under any existing contracts between- the officer and the corporation, by giving written notice to the president or to the board of directors. An officer's resignation shall take effect at the time specified in such notice, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. A vacancy in any office, however occurring, may be filled by the board of directors for the unexpired portion of the term. Section 4.6 Authority and Duties of Officers. The officers of the corporation. shall have the authority and shall exercise the powers and perform the duties specified below and as may be additionally specified by the president, the board of directors or these bylaws, except that in any event each officer shall exercise such powers and perform such duties as may be required by law. (a) President. The president shall, subject to the direction and supervision of the board of directors, (i) be the chief executive officer of the corporation and have general and active control of its affairs and business and general supervision of its officers, agents and employees; (ii) preside at all meetings of the board of directors; (iii) see that all orders and resolutions of the board of directors are carried into effect; and (iv) perform all other duties 7 i, ~? Matt Mire -Bylaws-V2.doc Page 8 incident to the office of president and as from time to time may be assigned to the president by the board of directors. (b) Vice-Presidents. The vice-president or vice-presidents shall assist the president and shall perform such duties as may be assigned to them by the president or by the board of directors. The vice-president (or if there is more than one, then the vice-president designated by the board of directors, or if there be no such designation, then the vice-presidents in order of their election) shall, at the request of the president, or in the president's absence or inability or refusal to act, perform the duties of the president and when so acting shall have all the powers of and be subject to all the restrictions of the president. (c) Secretary. The secretary shall (i) keep the minutes of the proceedings of the board of directors and any committees of the board; (ii) see that all notices are duly given in accordance with the provisions of these bylaws or as required by law; (iii) be custodian of the corporate records and of the seal of the corporation; and (iv) in general, perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to the secretary by the president or by the board of directors. Assistant secretaries, if any, shall have the same duties and powers, subject to supervision by the secretary. (d) Treasurer. The treasurer shall (i) be the principal financial officer of the corporation and have the care and custody of all its funds, securities, evidences of indebtedness and other personal property and deposit the same in accordance with the instructions of the board of directors; (ii) receive and give receipts and acquittances for moneys paid in on account of the corporation, and pay out of the funds on hand all bills, payrolls and other just debts of the corporation of whatever nature upon maturity; (iii) unless there is a controller, be the principal accounting officer of the corporation and as such prescribe and maintain the methods and systems of accounting to be followed, keep complete books and records of account, prepare and file all local, state and federal tax returns and related documents, prescribe and maintain an adequate system of internal audit, and prepare and furnish to the president and the board of directors statements of account showing the financial position of the corporation and the results of its operations; (iv) upon request of the board, make such reports to it as may be required at any time; and (v) perform all. other duties incident to the office of treasurer and such other duties as from time to time may be assigned to the treasurer by the president or the board of directors. Assistant treasurers, if any, shall have the same powers and duties, subject to supervision by the treasurer. Section 4.7 Surety Bonds. The board of directors may require any officer or agent of the corporation to execute to the corporation a bond in such sums and with such sureties as shall be satisfactory to the board, conditioned upon the faithful performance of such person's duties and or the restoration to the corporation of all books, papers, vouchers, money and other property of whatever kind in such person's possession or under such person's control belonging to the corporation. ARTICLE V 8 i I Matt Mire -Bylaws-V2.doc INDEMNIFICATION Section 5. ] Definitions. Page 9 For purposes of this Article V, the following terms shall have the meanings set forth below: (a) "Corporation" means the corporation and, in addition to the resulting or surviving corporation, any domestic or foreign predecessor entity of the corporation in a merger, consolidation or other transaction in which the predecessor's existence ceased upon consummation of the transaction. (b) "Ex enses" means the actual and reasonable expenses, including attorneys' fees, incurred by a party in connection with a proceeding. (c) "Liability" means the obligation to pay a judgment, settlement, penalty, fine (including an excise tax benefit plan) or expense incurred with respect to a proceeding. (d) "Official capacity" when used with respect to a director of the corporation means the office of director in the corporation, and when used with respect to a person in a capacity other than as a director (even if such person is also a director) means the office in the corporation held by the officer or the employment relationship undertaken by the employee on behalf of the corporation in the performance of his or her duties in his or her capacity as such officer or employee. "Official capacity" does not include service for any other foreign or domestic corporation or for any partnership, joint venture, trust, other enterprise or employee benefit plan when acting directly on behalf of such other corporation, partnership, joint venture, trust, enterprise or plan as a director, officer, employee, fiduciary or agent thereof. (e) "Party" means any person who was, is, or is threatened to be made, a named defendant or respondent in a proceeding by reason of the fact that such person is or was a director, officer or employee of the corporation, and any person who, while a director, officer or employee of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any other foreign or domestic corporation or of any partnership, joint venture, trust, other enterprise or employee benefit plan. A party shall be considered to be serving an employee benefit plan at the corporation's request if such party's duties to the corporation also impose duties on or otherwise involve services by such party to the plan or to participants in or beneficiaries of the plan. (f) "Proceeding" means any threatened, pending or completed action, suit or proceeding, or any appeal therein, whether civil, criminal, administrative, arbitrative or investigative (including an action by the corporation) and whether formal or informal. Section 5.2 Right to Indemnification. (a) Standards of Conduct. Except as provided in Section 5.2(d) below, the corporation shall indemnify any party to a 9 Matt Mire - ByVaws-V2.doc f Page 10 proceeding against liability incurred in or as a result of the proceeding if (i) such party conducted himself or herself in good faith, (ii) such party reasonably believed (A) in the case of a director acting in his or her official capacity, that his or her conduct was in the corporation's best interests, or (B) in all other cases, that such party's conduct was at least not opposed to the corporation's best interests, and (iii) in the case of any criminal proceeding, such party had no reasonable cause to believe his or her conduct was unlawful. For purposes of determining the applicable standard of conduct under this Section 5.2, any party acting in his or her official capacity who is also a director of the corporation shall be held to the standard of conduct set forth in Section 5.2(a)(ii)(A), even if such party is sued solely in a capacity other than as such director. (b) Employee Benefit Plans. A party's conduct with respect to an employee benefit plan for a purpose such party reasonably believed to be in the interests of the participants in or .beneficiaries of the plan is conduct that satisfies the requirements of Section 5.2(a)(ii)(B). A party's conduct with respect to an employee benefit plan for a purpose that such party did not reasonably believe to be in the interests of the participants in or beneficiaries of the plan shall be deemed not to satisfy the requirements of Section 5.2(a)(i). (c) Settlement. The termination of any proceeding by judgment, order, settlement or conviction, or upon a plea of polo contendere or its equivalent, is not of itself determinative that the party did not meet the applicable standard of conduct set forth in Section 5.2(a). (d) Indemnification Prohibited. Except as hereinafter set forth in this Section 5.2(d), the corporation may not indemnify a party under this Section 5.2 either (i) in connection with a proceeding by the corporation in which the party is or has been adjudged liable for gross negligence or willful misconduct in the performance of the party's duty to the corporation, or (ii) in connection with any proceeding charging improper personal benefit to the party, whether or not involving action. in the party's official capacity, in which the party was adjudged liable on the basis that personal benefit was improperly received by the party (even if the corporation was not thereby damaged). Notwithstanding the foregoing, the corporation shall indemnify any such party if and to the extent required by the court conducting the proceeding, or any other court of competent jurisdiction to which the party has applied, if it is determined by such court, upon application by the party, that despite the adjudication of liability in the circumstances in clauses (i) and (ii) of this Section 5.2(d) or whether or not the party met the applicable standard of conduct set forth in Section 5.2(a), and in view of all relevant circumstances, the party is fairly and reasonably entitled to indemnification for such expenses as the court deems proper in accordance with the Colorado Nonprofit Corporation Code. (e) Claims by Corporation. Indemnification permitted under this Section 5.2 in connection with. a proceeding by the corporation shall be limited to expenses incurred in connection with the proceeding. (f) Combined Proceedings. If any claim made by the corporation against a party is joined with any other claim against such party in a single proceeding, the claim by the corporation (and all expenses related thereto) shall nevertheless be deemed the subject of a separate and distinct proceeding for purposes of this Article. 10 -- Matt Mire -Bylaws-V2.doc Page 11 Section 53 Prior Authorization Required. Any indemnification under Section 5.2 (unless ordered by a court) shall be made by the corporation only if authorized in the specific case after a determination has been made that the party is eligible for indemnification in the circumstances because the party has met the applicable ~, standard of conduct set forth in Section 5.2(a) and after an evaluation has been made as to the ', reasonableness of the expenses. Any such determination, evaluation and authorization shall be made by the board of directors by a majority vote of a quorum of such board, which quorum shall consist of directors not parties to the subject proceeding, or by such other person or body as permitted bylaw. Section 5.4 Success on Merits or Otherwise. Notwithstanding any other provision of this Article V, the corporation shall indemnify a party to ', the extent such party has been. successful, on the merits or otherwise, including without limitation, dismissal without prejudice or settlement without admission of liability, in defense of any proceeding to which the party was a party against expenses incurred by such party in connection therewith. Section 5.5 Advancement of Expenses. The corporation shall pay for or reimburse the expenses, or a portion thereof, incurred by a party in advance of the final disposition of the proceeding if: (a) the party furnishes the corporation a written affirmation of such party's good-faith belief that he or she has met the standard of conduct described in Section 5.2(a)(i); (b) the party furnishes the corporation a written undertaking, executed personally or on behalf of such party, to repay the advance if it is ultimately determined that the party did not meet such .standard of conduct; and (c) authorization of payment and a determination that the facts then known to those making the determination would not preclude indemnification under this Article have been made in the manner provided in Section 5.3. The undertaking required by clause (b) must be an unlimited general obligation of the party, but need not be secured and may be accepted without reference to financial ability to make repayment. Section 5.6 Payment Procedures. The corporation shall promptly act upon any request for indemnification, which request must be in writing and accompanied by the order of court or other reasonably satisfactory evidence documenting disposition of the. proceeding in the case of indemnification under Section 5.4 and by the written affirmation and undertaking to repay as required by Section 5.5 in the case of indemnification under such Section. The right to indemnification and advances granted by this Article shall be enforceable in any court of competent jurisdiction if the corporation denies the claim, in whole or in part, or if no disposition of such claim is made within ninety days after written request for indemnification is made. A party's expenses incurred in connection with successfully establishing such party's right to indemnification, in whole or in part, in any such proceeding shall also be paid by the corporation. Section 5.7 Insurance. 11 I r: i Matt Mire -Bylaws-V2.doc Page 12 __ it By action of the board of directors, notwithstanding any interest of the directors in such action, the corporation may purchase and maintain insurance in such amounts as the board of directors deems appropriate to protect itself and any person who is or was a director, officer, employee, fiduciary or agent of the corporation, or who, while a director, officer, employee, fiduciary or agent of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any other foreign or domestic corporation or of j any partnership, joint venture, trust, other enterprise or employee benefit plan against any liability asserted against or incurred by such person in any such capacity or arising out of such person's '~ status as such, whether or not the corporation would have the power to indemnify such person against such liability under applicable provisions of law or this Article. Any such insurance may be procured from any insurance company designated by the board of directors, whether such insurance company is formed under the laws of Colorado or any other jurisdiction, including any insurance company in which the corporation has an equity or any other interest, through stock ownership or otherwise. The corporation may create a trust fund, grant a security interest or use other means (including, without limitation, a letter of credit) to ensure the payment of such sums as may become necessary to effect indemnification as provided herein.. Section 5.8 Ri h~m~ose Conditions to Indemnification. The corporation shall have the right to impose, as conditions to any indemnification provided or permitted in this Article, such reasonable requirements and conditions as may appear appropriate to the board of directors in each specific case and circumstances, including but not limited to any one or more of the following: (a) that any counsel representing the party to be indemnified in connection with the defense or settlement of any proceeding shall be counsel mutually agreeable to the party and to the corporation; (b) that the corporation shall have the right, at its option, to assume and control the defense or settlement of any claim or proceeding made, initiated or threatened against the party to be indemnified; and (c) that the corporation shall. be subrogated, to the extent of any payments made by way of indemnification, to all of the indemnified party's right of recovery, and that the party to be indemnified shall execute all writings and do everything necessary to assure such rights of subrogation to the corporation. Section 5.9 Other Rights and Remedies. Except as limited by law, the indemnification provided by this Article shall be in addition to any other rights which a party may have or hereafter acquire under any law, provision of the articles of incorporation, any other or further provision of these bylaws, vote of the board of directors, agreement, or otherwise. Section S.10 Applicability; Effect. The indemnification provided in this Article shall be applicable to acts or omissions that occurred prior to the adoption of this Article, shall continue as to any party entitled to indemnification under this Article who has ceased to be a director, officer or employee of the corporation or, at the request of the corporation, was serving as and has since ceased to be a director, officer, partner, trustee, employee, fiduciary or agent of any other domestic or foreign corporation, or of any partnership, joint venture, trust, other enterprise or employee benefit plan, 12 Matt Mire -Bylaws-V2.doc Page 13 and shall inure to the benefit of the estate and personal representatives of each such person. The repeal or amendment of this Article or of any Section or provision hereof that would have the effect of limiting, qualifying or restricting any of the powers or rights of indemnification provided or permitted in this Article shall not, solely by reason of such repeal or amendment, eliminate, restrict or otherwise affect the right or power of the corporation to indemnify any person; or affect any right of indemnification of such person, with respect to any acts or omissions that occurred prior to such. repeal or amendment. All rights to indemnification under this Article shall be deemed to be provided by a contract between the corporation and each party covered hereby. Section 5.11 Indemnification. of Agents. The corporation shall have the right, but shall not be obligated, to indemnify any agent of the corporation not otherwise covered by this Article to the fullest extent permissible by the laws of Colorado. Unless otherwise provided in any separate indemnification arrangement, any such indemnification shall be made only as authorized in the specific case in the manner provided in Section 5.3. Section 5.12 Savings Clause; Limitations. If this Article or any Section or provision hereof shall be invalidated by any court on any ground, then the. corporation shall nevertheless indemnify each party otherwise entitled to indemnification hereunder to the fullest extent permitted by law or any applicable provision of this Article that shall not have been invalidated. MISCELLANEOUS Section 5.1 Account Books, Minutes, Etc. The corporation shall keep correct and complete books and records of account and shall keep minutes of the proceedings of its board of directors and committees. All books and records of the corporation may be inspected by any director, or that director's authorized agent or attorney, for any proper purpose at any reasonable time. Section 5.2 Fiscal. Year. The fiscal year of the corporation shall be as established by the board of directors. Section 5.3 Conveyances and Encumbrances. Property of the corporation may be assigned, conveyed or encumbered by such officers of the corporation as may be authorized to do so by the board of directors, and such authorized persons shall have power to execute and deliver any and all instruments of assignment, conveyance and encumbrance; however, the sale, exchange, lease or other disposition of all or substantially all of the property and assets of the corporation shall be authorized only in the manner prescribed by applicable statute. 13 Matt Mire -Bylaws-V2.doc Page 14 Section 5.4 Designated Contributions. The corporation may accept any designated contribution, grant, bequest or devise consistent with its genera]. tax-exempt purposes, as set forth in the articles of incorporation. As so limited, donor-designated contributions will be accepted for special funds, purposes or uses, and such designations generally will be honored. However, the corporation shall reserve all right, title and interest in and to and control of such contributions, as well as full discretion as to the ultimate expenditure or distribution thereof in connection with any such special fund, purpose or use. Further, the corporation shall. acquire and retain sufficient control .over all donated funds (including designated contributions) to assure that such funds will be used to carry out the corporation's tax-exempt purposes. Section 5.5 Conflicting Interest Transactions. (a) As used in this section, "Conflicting Interest Transaction" means a contract, transaction, or other financial relationship between the corporation and a director of the corporation, or between the corporation and a party related to a director or between the corporation and an entity in which a director of the corporation is a director or officer or has a financial interest. (b) No loans shall be made by the corporation to its directors or officers. Any director or officer who assents to or participates in the making of any such loan shall be liable to the corporation for the amount of such loan until the repayment thereof. (c) No Conflicting Interest Transaction shall be void or voidable or be enjoined, set aside, or give rise to an award of damages or other sanctions in a proceeding in the ', right of the corporation, solely because the Conflicting Interest Transaction involves a director of ~I the corporation or a party related to a director or an entity in which a director of the corporation is a director or officer or has a financial interest or solely because the director is present at or participates in the meeting of the corporation's board of directors or of the committee of the ~ board of directors that authorizes, approves, or ratifies the Conflicting Interest Transaction or ~, solely because the director's vote is counted for such purpose if: (i) The material facts as to the director's relationship or interest j and as to the Conflicting Interest Transaction are disclosed or are known to the board of directors li or the committee, and the board of directors or committee in good faith. authorizes, approves, or ratifies the Conflicting Interest Transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum; or (ii) The Conflicting Interest Transaction is fair as to the corporation. ~ (d) Common or interested directors may be counted in determining the presence of a quorum at a meeting of the board of directors or of a committee which authorizes, approves, or ratifies the Conflicting Interest Transaction. (e) For purposes of this section, a party related to a director shall mean I 14 I~ I ~' ;, ' Matf Mire -Bylaws-V2.doc Page 15 li a spouse, a descendent, an ancestor, a sibling, the spouse or descendent of a sibling, an estate or trust in which the director or a party related to a director has a beneficial interest, or an entity in which a party related to a director is a director, officer, or has a financial interest. (f) Notwithstanding any other provision of this Article VI, no contract, transaction or financial relationship between the corporation and the employees of the Town of Vail, Colorado shall constitute a Conflicting Interest Transaction. Section 5.6 Non-Liability For Debts. The private property of the directors and officers shall be exempt from execution or other ~, liability for any debts of the Corporation and no director shall be liable or responsible for the debts or liabilities of the Corporation. ~I Section 5.7 Amendments. The power to .alter, amend or repeal these bylaws and adopt new bylaws shall be vested in the board of directors. Section 5.8 Severability. The invalidity of any provision of these bylaws shall not affect the other provisions hereof, and in such event these bylaws shall be construed in all respects as if such invalid provision were omitted. II The undersigned hereby certifies that the foregoing Bylaws of Timber Ridge Affordable Housing Corporation as adopted July 7, 2003, are in full force and effect as of July 7, i 2003. i [SEAL] Secretary Matt Mire -Bylaws-V2.doc -- Page 16 DOCUMENT LOCATOR PAGE Vail/Timber Ridge/2003 Bonds H:\CLIENT\PublicFinance\005605 Vail\005605015-Timber-Ridge\Bylaws-Vl.doc Created on: 4/28/2003 1:56 PM Last Saved on: 4/29/2003 4:08 PM Printed on: 5/27/2003 6:42 PM In order to locate this document quickly, please keep this page with the attached document. Thank you. WARNING: You may need to delete the tag footer from this document. Please report any problems with this macro to the User Support Specialist, x8011. Matt Mire -Article-V2.doc DRAFT DATED June 2S, 2003 ARTICLES OF INCORPORATION OF TIMBER RIDGE AFFORDABLE HOUSING CORPORATION The undersigned adult natural person, acting as incorporator, hereby establishes a nonprofit corporation pursuant to the laws of the State of Colorado governing nonprofit corporations and adopts the following articles of incorporation: ', l: Name. The name of the corporation is Timber Ridge Affordable Housing Corporation. 2: Principal Office. The address of the initial principal office of the corporation shall be 75 South Frontage Road West, Vail, Colorado 81657, and may be changed as deemed appropriate by the Board of Directors of the corporation. 3: Duration. The corporation shall have perpetual existence. 4: (a) (a) Purposes. The corporation is organized and shall be operated exclusively on behalf of and for the benefit and in furtherance of the purposes of the Town of Vail, Colorado, and the inhabitants thereof. All moneys realized by the corporation shall be used exclusively for the acquisition, operation, maintenance and development of ', property used to provide decent, safe and sanitary housing at affordable rental rates to individuals or families of employees within the Town or within Eagle County, including payment of obligations of the corporation in connection therewith. Any such property shall be located within the Town of Vail, Colorado or have a substantial connection therewith. (b) Powers. In furtherance of the foregoing purposes and objectives and subject to the restrictions set forth in section (c) of this article, the corporation shall have and may exercise all of the powers now or hereafter conferred upon nonprofit corporations organized under the laws of Colorado and may do everything necessary or convenient for the accomplishment of any of the corporate purposes, either alone or in connection with other organizations, entities or individuals, and either as principal or agent, subject to such limitations as are or may be prescribed by law. Page 1 (c) Restrictions on Powers. ~~__ Matt Mire -Article-V2.doc Page 2 (1) No part of the net earnings of the corporation shall inure to the benefit of or be distributable to any director or officer of the corporation, or any other private person (except that reasonable compensation. may be paid for services rendered to or for the benefit of the corporation affecting one or more of its purposes), and no director or officer of the corporation, or any other individual, shall be entitled to share in any distribution of any of the corporate assets on dissolution of the corporation or otherwise. (2) No substantial part of the activities of the corporation shall consist of carrying on propaganda or otherwise attempting to influence legislation.. The corporation shall not participate or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. (3) All property of the corporation shall be owned for the benefit of the Town of Vail, Colorado. Upon dissolution of the corporation, all property of the corporation remaining after payment of or provision for all of its liabilities shall be paid over or transferred to the Town of Vail, Colorado. This limitation shall not restrict the ability of the corporation to pledge its property to secure the payment of its obligations. organized for profit. (4) The corporation at all times shall be one not 5: Registered Office and Agent. The address of the initial registered office of the corporation is 75 South Frontage Road West, Vail, Colorado 81657. The name of its initial registered agent at such office is Matt Mire, Esq. The consent of the initial registered agent to such appointrr-ent is being filed with the Secretary of State in connection with these articles of incorporation. 6: 1VIembers. The corporation shall have no members, voting or nonvoting. 7: (a) (a) Board of Directors. The management of the affairs of the corporation shall be vested in a Board of Directors, except as otherwise provided in the laws of the State of Colorado governing nonprofit corporations, these articles of incorporation or the bylaws of the corporation. The number of directors, their classifications, if any, their terms of office and the manner of their election or appointment shall be determined according to the bylaws of the corporation from time to time in force. (b) Liability of Directors. The personal liability of a director to the corporation for monetary damages for any breach of fiduciary duty as a director is limited to the fullest extent permitted by the laws of the State of Colorado, as the same exist or may hereafter be amended, and as further provided in the bylaws of the corporation. Any repeal or modification of this Article SEVENTH (b) shall be prospective only and shall not adversely Matt Mire -Article-V2.doc Page 3 affect any right or protection of a director of the corporation under this Article SEVENTH (b), as in effect immediately prior to such repeal or modification, with respect to any liability that would have accrued, but for this Article SEVENTH (b), prior to such repeal or modification. (c) Initial Board. Five directors shall constitute the initial Board of Directors. Their names and addresses are as follows: Name Address Dick Cleveland Diana Donovan I„ ('' I" Bill Jewitt Ludwig Kurz Gregg Moffet Chuck Ogilby Rod Slifer EIGHTH: Bylaws. The initial bylaws of the corporation shall be as adopted by the Board of Directors. The Board of Directors shall have power to alter, amend or repeal the bylaws from time to time in force and adopt new bylaws. The bylaws of the corporation may contain any provisions for the regulation of management of the affairs of the corporation that are not inconsistent with the law or these articles of incorporation, as these articles may from time to time be amended. However, no bylaw at any time in effect, and no amendment to these articles, shall have the effect of proprietary interest in the corporation's property or assets, whether during Matt Mire -Article-V2.doc Page 4 , the term of the corporation's existence or as an incident to its dissolution. NINTH: Incorporator. The name and address of the incorporator is: Dated: Matt Mire, Esq., Incorporator Matt Mire -Article-V2.doc I CONSENT OF REGISTERED AGENT The undersigned hereby consents to his appointment as initial registered agent for Timber Ridge Affordable Housing Corporation. Dated: Registered Agent ACKNOWLEDGMENT STATE OF COLORADO ) ss. COUNTY OF EAGLE ) Acknowledged before me this _ day of , 2003 by as incorporator and registered agent. Witness my hand and official seal. My commission expires (SEAL) Page 5 Notary Public __ r~ Matt Mire -Article-V2.doc DOCUMENT LOCATOR PAGE Vail/Timber Ridge/2003 Bonds H:\CLIENT\PublicFinance\005605 Vail\005605015-Timber-Ridge\Article-Vl.doc Created on: 4/28/2003 12:00 PM Last Saved on: 5/27/2003 6:37 PM Printed on: 5/27/2003 6:43 PM In order to locate this document quickly, please keep this page with the attached document. Thank you. WARNING: You may need to delete the tag footer from this document. Please report any problems with this macro to the User Support Specialist, x80ll . Page 6 Matt Mire - Note.doc DRAFT DATED JUNE 25, 2003 PROMISSORY NOTE July 9, 2003 Timber Ridge Affordable Housing Corporation, (the "Corporation"), for value received, promises to pay to Town of Vail, Colorado (the "Town") the principal sum of ONE MILLION DOLLARS ($1,000,000) ,plus interest on the unpaid balance from the date hereof of such sum or sums then owing from time to time at one and one-half percent (1.50%) per annum due December 15, 2032. Amounts payable hereunder shall be payable solely from revenues of the Corporation's Timber Ridge Apartments, including any additions thereto (the "Project"), and from no other revenues or income of the Corporation. The obligations hereunder shall be subordinate to those obligations of the Corporation to the owners of the Timber Ridge Affordable Housing Corporation, Adjustable Rate Housing Facilities Revenue Bonds Series 2003A and the Timber Ridge Affordable Housing Corporation, Subordinate Housing Facilities Revenue Bonds Series 2003B as the same shall be outstanding from time to time. This Note has been executed and delivered in consideration of the Town's loan to the Corporation to finance a portion of the cost of acquisition of the Project by the Corporation. This Note is intended to be a cash flow note, payable only to the extent the Corporation has determined that excess net revenues of the Project, after provision for any necessary operating or capital reserves, have been accumulated semi-annually on the business day next succeeding the payment of the principal, if any, and interest on the Series 2003B Bonds as the same come due. Unpaid interest hereon shall not compound but shall be payable as accumulated cash flow becomes available. All receipts upon this note shall first be applied to interest then due and owing and then to the payment of principal hereof. This Note shall be pre-payable in whole or in part from time to time by the Corporation. All payments shall be payable in lawful money of the United States of America, in immediately available funds, and shall be made to the Town at its offices for the account of the Town. The obligation of the Corporation to make the payments required hereunder shall be absolute and unconditional and the Corporation. shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances whatsoever including, without Page 1 I;''' Iiii is .. m~ Matt Mire - Note.doc Page 2 limitation, any defense, set-off, recoupment or counterclaim which the Corporation ma, ..w.., .,. assert against the Town or any other person. This Note shall be governed by and construed in accordance with the laws of the State of Colorado. IN WITNESS WHEREOF, the Corporation has signed this Note as of the date first above written. TIMBER RIDGE AFFORDABLE HOUSING CORPORATION By Chairman H:\CLIEN'I\PublicFinance\005605 Vail\005605015-Timber- 2 Ridge\Note.doc ORDINANCE N0.15, SERIES OF 2003 AN ORDINANCE OF THE COUNCIL OF THE TOWN OF VAIL, COLORADO, AUTHORIZING THE ISSUANCE AND SALE OF THE (i) TOWN OF VAIL, COLORADO VARIABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE SENIOR BONDS (MIDDLE CREEK VILLAGE APARTMENTS PROJECT) SERIES 2003A IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $16,630,000, (ii) TOWN OF VAIL, COLORADO MULTIFAMILY HOUSING REVENUE SUBORDINATE BONDS (MIDDLE CREEK VILLAGE APARTMENTS PROJECT) SERIES 2003B IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $875,000 AND (iii) TOWN OF VAIL, COLORADO TAXABLE MULTIFAMILY HOUSING REVENUE SUBORDINATE BONDS (MIDDLE CREEK VILLAGE APARTMENTS PROJECT) SERIES 2003-T IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $1,000,000; APPROVING A TRUST INDENTURE, A LOAN AGREEMENT, A BOND PURCHASE AGREEMENT A BOND PLACEMENT AGREEMENT, AND OTHER DOCUMENTS NECESSARY TO ISSUE THE BONDS; PROVIDING DETAILS CONCERNING THE BONDS AND FUNDS APPERTAINING THERETO; RATIFYING ACTS PREVIOUSLY TAKEN CONCERNING SAID BONDS; REPEALING ALL PROCEEDINGS IN CONFLICT HEREWITH; AND PROVIDING FOR OTHER MATTERS RELATING THERETO. WHEREAS, the Town is a public corporation and political subdivision of the State, acting as a home rule town under its Charter; and WHEREAS, the Councilmen and Mayor have been duly elected or appointed and qualified; and WHEREAS, the Council on December 18, 2001 adopted Resolution No. 15 Series 2001 declaring its intent to issue multifamily housing revenue bonds to provide financing for the Project; and WHEREAS, the Council deems it necessary at this time to authorize the issuance of the Series 2003A Bonds in an aggregate principal amount not to exceed $16,630,000, the Series 2003B Bonds in an aggregate principal amount not to exceed $875,000, and the Series 2003-T Bonds in an aggregate principal amount not to exceed $1,000,000, all in order to fund the Loan pursuant to the Charter, the Act and the Securities Act; and Ordinance No. 15, Series 2003 1 WHEREAS, the Council has determined and does hereby determine that the limitations of the Charter, the Act and the Securities Act imposed upon the issuance of the Bonds have been met and that the funding of the Loan will provide more adequate residential housing facilities for low- and middle income families and persons; and WHEREAS, the Council deems it necessary at this time to issue the Bonds, the net proceeds of which will be used to fund the Loan, which will be used by the Borrower for the purposes of financing the acquisition, development .and construction of the Project, funding certain funds under the Indenture and paying for costs and expenses related to the approval, issuance and sale of the Bonds; and WHEREAS, there have been presented to the Council proposed forms of this ordinance, as well as, (i) the Indenture, (ii) the Loan Agreement, (iii) the Regulatory Agreement, (iv) the Placement Agreement, and (iv) the Purchase Agreement. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Definitions. The terms defined in this section shall have the designated meanings for all purposes of this ordinance and of any amendatory or supplemental ordinance, except where the context by clear implication requires otherwise. "Act" means the County and Municipality Development Revenue Bond Act, Sections 29- 3-101 et. seq., Colorado Revised Statutes, as amended from time to time. "Bonds" means the Series 2003A Bonds ,the Series 2003B Bonds, and the Series 2003-T Bonds. "Borrower" means Middle Creek Village, LLC. "Charter" means the Home Rule Charter of the Town. "Code" means the Internal Revenue Code of 1986, as in effect on the date of delivery of the Bonds. "Council" means the Council of the Town. "Documents" means the Indenture, Loan Agreement, the Regulatory Agreement, the Placement Agreement and the Bond Purchase Agreement. "Indenture" means the Trust Indenture by and between the Town and the Trustee. Ordinance No. 15, Series 2003 2 i "Loan" means the loan from the Town to the Borrower of the proceeds from the sale of the Bonds for the purposes of financing the Project, as more fully described in the Loan Agreement, and paying for the costs and expenses related to the approval, issuance and sale of the Bonds. "Loan Agreement" means the Loan Agreement by and between the Town and the Borrower. "Mayor" means the Mayor of the Town. "Placement Agent" means Coughlin & Company, Inc. "Placement Agreement" means the Bond°Placement Agreement by and among the Town, the Placement Agent and the Borrower. "Project" means the multifamily housing apartments project financed by the Loan, as more fully described in the Loan Agreement. "Purchase Agreement" means the Bond Purchase Agreement, by and among the Town, the Borrower and the Underwriter. "Regulatory Agreement" means the Regulatory Agreement by and among the Town, the Borrower and the Trustee. "Securities. Act" means article 57, title 1 1, Sections 201, et. sea. of the Colorado Revised Statutes, as amended from time to time... "Series 2OO3A Bonds" means the Town of Vail, Colorado, Variable Rate Demand Multifamily Housing Revenue Senior Bonds (Middle Creek Village Apartments Project) Series 2OO3A to be issued pursuant to this ordinance and the Indenture. "Series 2OO3B Bonds" means the Town of Vail, Colorado Multifamily Housing Revenue Subordinate Bonds (Middle Creek Village Apartment Project) Series 2OO3B to be issued pursuant to this ordinance and the Indenture. "Series 2003-T Bonds" means the Town of Vail, Colorado, Taxable Multifamily Housing Revenue Subordinate Bonds (Middle Creek Village Apartments Project) Series 2003-T to be issued pursuant to this ordinance and the Indenture. "State" means the State of Colorado. "Tax Certificate and Agreement" means that certain Tax Certificate and Agreement of the Town dated as of the date of the issuance of the Bonds. Ordinance No. 15, Series 2003 3 i "Town" means the Town of Vail, Colorado, a municipal corporation and political subdivision of the State of Colorado. "Trustee" means The Bank of Cherry Creek, a branch of Western National Bank, or its successors and assigns, acting as registrar, tender agent, transfer agent and paying agent for the Bonds. "Underwriter" means Wells Fargo Brokerage Services, LLC. Section 2. Ratification. All action not consistent with the provisions of this ordinance heretofore taken by the Council and the officers of the Town directed toward the placement, sale and issuance of the Bonds for the purposes stated above be, and the same is hereby ratified, approved and confirmed. Section 3. Authorization. For the purpose of providing, funds for the Loan, the Town shall issue, in accordance with its Charter, the Act and the Securities Act, the Series 2003A Bonds in the aggregate principal amount not to exceed $16,300,000, the Series 2003B Bonds in the aggregate principal amount not to exceed $875,000, and the Series 2003-T Bonds in the aggregate principal amount not to exceed $1,000,000. Section 4. Bond Details. The Bonds shall be issued in fully registered form (i.e., registered as to payment of both principal and interest). The Bonds shall be in substantially the form provided in the Indenture. The Bonds shall be issued in denominations of $5,000 and integral multiples thereof, shall be numbered, shall be dated, shall mature, shall pay principal, shall bear and pay interest, shall be subject to redemption prior to maturity and shall be subject to registration, transfer, and exchange, all as set forth in the Indenture. The interest rate on the Series 2003A Bonds shall not exceed ten percent (10%) and the final maturity of the Series 2003A Bonds shall not be after August 1, 2043. The interest rate on the Series 2003B Bonds shall not exceed nine percent (9%) and the final maturity of the Series 2003B Bonds shall not be after August 1, 2043. The interest rate on the Series 2003-T Bonds shall not exceed nine percent (9%) and the final maturity of the Series 2003-T Bonds shall not exceed August 1, 2043. Section 5. Limited Obli atg ions. THE BONDS SHALL CONSTITUTE SPECIAL, LIMITED OBLIGATIONS OF THE TOWN PAYABLE SOLELY OUT OF THE MONIES PAYABLE UNDER THE LOAN AGREEMENT AS PROVIDED IN THE INDENTURE. THE BONDS SHALL NOT CONSTITUTE THE DEBT OR INDEBTEDNESS OR AMULTIPLE-FISCAL YEAR OBLIGATION OF THE TOWN OR THE STATE WITHIN Ordinance No. 15, Series 2003 tl. THE MEANING OF ANY PROVISION OR LIMITATION OF THE CONSTITUTION OR STATUTES OF THE STATE. THE BONDS SHALL NOT CONSTITUTE THE DEBT OR INDEBTEDNESS OR AMULTIPLE-FISCAL YEAR FINANCIAL OBLIGATION OF THE TOWN, THE STATE OR ANY COUNTY, MUNICIPALITY OR POLITICAL SUBDIVISION OF THE STATE. THE BONDS SHALL NOT CONSTITUTE OR GIVE RISE TO ANY PECUNIARY LIABILITY OR FINANCIAL OBLIGATION WHATSOEVER OR A CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWERS OF THE TOWN, THE STATE OR ANY COUNTY, MUNICIPALITY OR POLITICAL SUBDIVISION OF THE STATE. Section 6. Execution of Bonds; Si natures. The Bonds shall be executed on behalf of the Town by the manual or facsimile signature of the Mayor, sealed with the corporate seal of the Town or a facsimile thereof, and attested by the manual or facsimile signature of Town Clerk of the Town. In case any person who shall have signed (whether manually or by facsimile) any of the Bonds shall cease to be in an official capacity of the Town before the Bonds have been authenticated or delivered or sold, such Bonds with the signatures thereto affixed may, nevertheless, be authenticated and delivered, and may be sold by the Town, as though the person or persons who signed such Bonds had remained in office. Section 7. Form of Bonds and Trustee's Certificate of Authentication. The Bonds and Trustee's authentication certificate in the forms set forth in Exhibit A attached to the Indenture and herein incorporated by reference are hereby approved, with such changes as are authorized herein in Section 10. Section 8. Appointment of Trustee as Custodian. Pursuant to the provisions of the Act, the Trustee is appointed custodian of all Town moneys deposited in funds created by and subject to the lien of the Indenture, and is not required to provide any surety bond therefore, except as may otherwise be provided by the Indenture under certain circumstances. Section 9. Approvals, Authorizations, and Amendments. The forms of the Documents are hereby approved. The Town shall enter into and perform its obligations under the Documents in the forms of each of such documents presented to the Council prior to this meeting with such changes, additions and completions thereto as shall be approved by the Town Manager or Acting Town Manager, in consultation with the Town Attorney and bond counsel; the Town Manager, or Acting Town Manager is hereby authorized and directed to approve such changes, additions and completions to the Documents as necessary to effectuate the purposes of Ordinance No. 15, Series 2003 5 this ordinance; and the Mayor and Town Clerk of the Town, are each hereby authorized to execute and ,deliver the Documents and such other documents, instruments or certificates (including, without limitation, a tax certificate and agreement, a remarketing agreement and an intercreditor agreement) as are deemed necessary or desirable by the Town Manager, Acting Town Manager or Town Attorney and bond counsel in order to issue and secure the Bonds, and the Town Clerk of the Town is hereby authorized to attest and to affix the seal of the Town thereto. Such documents are to be executed in the forms hereinabove approved, provided that such documents may be completed, corrected or revised as deemed necessary by the parties thereto in order to carry out the purposes of this ordinance. Copies of all of the documents shall be delivered, filed. and recorded as provided therein. The proper officers of the Town are hereby authorized and directed to prepaxe and furnish to bond counsel certified copies of all proceedings and records of the Town relating to the Bonds and such other affidavits and certificates as may be required to show the facts relating to the authorization and issuance thereof as such facts appear from the books and records in such officers' custody and control or as otherwise known to them. The approval hereby given to the documents referred to above includes an approval of the maximum principal amounts, interest rates and not to exceed maturity dates of each series of the Bonds, and all additional details therein as may be necessary and appropriate for their completion, for deletions therefrom and for additions thereto as may be approved by the Town Manager, or Acting Town Manager, the Town Attorney, bond counsel and the Mayor prior to the execution of the documents. The execution of any document by the appropriate officers of the Town herein authorized shall be conclusive evidence of the approval by the Town of such instrument in accordance with the terms hereof. As required under the Act, the Council hereby determines that (1) the amount necessary in each year to pay the principal of and the interest on the Bonds will be set forth in the Indenture and the Loan Agreement, (2) no reserve funds outside of those established in the Indenture and the Loan Agreement need to be established and funded by the Town in connection with the retirement of the Bonds or the maintenance of the Project, (3) under the terms and conditions of the Loan Agreement, and other documents, the Borrower is required to maintain the Project, to carry all proper insurance with respect thereto and to pay the taxes which the taxing entities are entitled to receive from the Borrower, and (4) the payments required under the Ordinance No. 15, Series 2003 t Loan Agreement are sufficient to pay the principal of and interest on the Bonds when due, and to pay all other costs required under the Loan Agreement. Section 10. Contract with Bondholders. After any of the Bonds have- been issued, this ordinance shall constitute a contract between the Town and the owner or owners of the Bonds and shall be and remain irrepealable until the Bonds and the interest thereon shall have been fully paid, satisfied and discharged. Section 11. Severability; Reconsideration. If any section, paragraph, clause or provision of this ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance. The Council hereby declares that this ordinance providing for the financing of the Project is necessary for the immediate preservation of the public peace, health and safety of the Town. Accordingly, this Ordinance is not subject to referendum under the Charter. Section 12. Repealer. All acts and ordinances in conflict with this ordinance are hereby rescinded, annulled and repealed. This repealer shall not be construed to revive any act or ordinance, or part thereof, heretofore repealed. Section 13. Limitation of Actions. Under the Act, no action may be brought questioning the legality of this ordinance, the Indenture, the Loan Agreement or the Bonds on and after thirty (30) days from the effective date of this ordinance. Ordinance No. 15, Series 2003 ~ INTRODUCED, READ, APPROVED, AND ORDERED PUBLISHED ONCE 1N FULL ON FIRST READING this 17th day of June, 2003 and a public hearing shall be held on this Ordinance on the 1st of July, 2003, at 6:00 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Ludwig Kurz, Mayor ATTEST: (SEAL) Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this day of , 2003. Ludwig Kurz, Mayor ATTEST: (SEAL) Lorelei Donaldson, Town Clerk Ordinance No. 15, Series 2003 g MEMORANDUM TO: Vail Town Council FROM: Pam Brandmeyer, Interim Town Manager RE: Town Manager's Report DATE: July 1, 2003 July 4th Public Safety Campaign Preparations are again underway to implement our public safety campaign for the July 4th holiday. This will be our third year for implementation of the townwide curfew and the special event district. The restrictions will be in place from 10:30 p.m. July 4 to 5 a.m. July 5 and will apply to ages 17 and under unless accompanied by a parent or guardian. We are working with representatives from the VCBA, WCTB, CSE, VRI, the lodging community, Lacrosse Shootout coordinators and local media outlets to help raise public awareness about these initiatives. Our messages will again stress the variety of family-friendly activities available throughout the day, including the return of VaiPs fireworks display Friday at dusk from Golden Peak. Chief Henninger and his staff have arranged to add an additional 29 officers on Friday evening and 20 extra officers on Saturday. The officers have been recruited from the Colorado State Patrol and will be deployed strategically during the two evenings. Given our past experience with the curfew and special event district, we anticipate the pedestrian areas to be a safe, alcohol- free environment for families wishing to experience Vail in its summer splendor. The list of activities is as follows: Fri., July 4 Vail Lacrosse Shootout, Elite, Ford Park; 7 a.m. to 7 p.m. Vail Mountain Open for Gondola Rides, 10 a.m. to 9 p.m. Vail America Days Parade: LionsHead Village to Golden Peak, 10 a.m. City of Denver Pipe Band, Vail Village, 12:30 p.m. Colorado Academy of the Arts, Vail Village, 1:15 p.m. Track 29 Youth Group, Vail Village, 2:30 p.m. Free Patriotic Concert, Ford Amphitheater, 3 p.m. Tickets are required for admission this year. Tickets are FREE and available to the public on a first-come, first- served basis. Doors open at 1 p.m. Call 970-845-TIXS for information. Colorado Academy of the Arts, Vail Village, 3:30 p.m. Fireworks Display, Golden Peak, 9:45 p.m. Donovan Pavilion Requests Donovan Pavilion Requests As you consider contribution requests for allocation of up to 12 free days at the Donovan Pavilion in 2004, we ask that you set aside the following days for Town of Vail use: Donovan Pavilion Requests 2003 August 20 Ribbon Cutting, TBD TBD Town Manager Welcome Reception, 4 to 6 p.m. Oct. 31 Matterhorn Neighborhood Halloween celebration, 4 to 8 p.m. Nov. 4 Election, 6 a.m. to 10 p.m. Nov. 4-7 Vail Police Training & Department Meeting, 7:30 a.m. to 6 p.m. Nov. 11-14 Vail Police Training, 7:30 a.m. to 6 p.m. Dec. 31 New Year's Eve event requested by Public Works, 8 p.m. to 1:30 a.m. 2004 Jan. 2 Town of Vail Annual Community Meeting, 4 to 7 p.m. Aug. 19 Town of Vail Neighborhood Picnic & Ice Cream Social, 10 a.m. to 2 p.m. Nov. 2 Election, 6 a.m. to 10 p.m. With your approval, we will contact Donovan Park Management Company to notify them of your interest in securing these dates as part of the overall contribution request process. Business License Fee Administration This past week, the town's Business License Fee and how it is administered was called into question. Originally in 1988 and '89 when the original business license fee was passed by ordinance, an annual collection was required, with a subsequent revision in 1995 to allow for pro-rated quarterly adjustments. In the circumstance outlined in the newspaper, the difference in fee to the applicant was around $80.00. When last revisited, the Council was reluctant to allow more of a reduction in fee through pro-rations in light of marketing efforts having been on- going throughout the year. Please advise staff if you would like to reconsider this part of the regulation. 2-1/2%'03 Merit Increase As we've done in the past with expenditures of this magnitude that are budgeted but not implemented until after the first of the year, I am asking for your direction to proceed with the employee '03 merit increases. Reserve Police Officer Program I believe Dwight's memorandum with respect to reinstituting the Reserve Police Officer Program is complete. I would endorse moving forward with this program for the conclusions he's provided. The minimal costs will be absorbed by the department's current budget and I believe the merits of such a program will bring long-term consistency and support to the community and the police department. UPCOMING ITEMS: July 15, 2003, Work Session November Election Discussion DRB/PEC Update Audit Discussion Parking vs. real grass at Ford Park Policy discussion on parking, short-term, long-term 2004-05 Budget Discussion July 15, 2003, Evening Meeting Pirate Ship Park contract Approval Park User Fee Discussion Parking Task Force Recommendations Ord. #9, Four Seasons Resort SDD, 2"d reading Ord. #10, Four Seasons Resort, rezoning Amoco Site, 2"d reading Ord. #14, Timber Ridge Housing Corp., 2"d reading GRFA Discussion Mary Caster -Reserve Program 603.doc Page 1 Department of Police at ~Y~ t~-~ t~~ Memorandum To: Vail Town Council Pam Brandmeyer, Interim Town Manager From: Dwight Henninger, Chief of Police Date: June 24, 2003 Subject: Reinstituting Reserve Police Officer Program Recommendations: The police department's recommendation is to reinstitute the Reserve Police Officer Program for the Town of Vail. This program consists of citizen volunteers who have attended a regular or reserve police academy, as authorized by the state. This second. officer will assist in helping the regular officer with special events. We believe this program will not have any significant budgetary implications. History: Approximately ten years ago, the police department had a Reserve Officer Program, which is authorized by Town Code 6-1-4. Officer Rusty Jacobs is the only remaining officer who was originally in this program. The significant issues surrounding the program during this time were the lack of continuing in-house training for reserves, anal the absence of a local academy for new reserves to attend. Discussion: The effect of reducing the number of peace officers from 33 to 29, (and now 27) has made staffing difficult during special events and peak periods. A group of trained and well qualified reserve officers would serve to augment the current full-time staff. With the increase of special events being held in Vail, the department regularly has to contract with other local police agencies, the sheriff's office and Colorado State Patrol, to meet critical law enforcement needs. The department has received several complaints regarding special event promoters who prefer having Vail Officers hired for these events, as they are more aware of the on-going issues in Vail. In the past two years, we have enlisted 40-50 officers for New Years Eve and the 4th of July. This has become an expensive enterprise, with. each officer costing the Town of Vail approximately $750 dollars, and reaching over $1,000 dollars, when overtime, per diem, lodging and travel is factored in for each day. It is staff's determination that costs for a reserve officer per year would be less than the cost of securing outside officers for the extra duty holiday events. Mary Caster -Reserve Program 603.doc Page 2 Reserves would ride with regular officers as a second officer in the mobile unit, which would be of great assistance to the night shifts during the weekend s and our extremely busy ski season. Having two trained officers together reduces the need to send a second car to higher risk calls such as domestic disturbances and parties occurring in town. Reserve Officers are authorized under CRS 18-1-901(3)(1)(IV.S)(A) as level IIIa Peace Officers, and under section (E), they are not authorized to receive any compensation over and above paying for any out-of -pocket expense they incur as a reserve. The basic minimum training academy for a reserve officer is mandated by the State of Colorado Peace Officer Standards and Training (POST) Board at 200 hours. A full-time officer's training academy is mandated at a minimum of 443 hours and obviously they can receive compensation for their work. The state has no different delineation for afull-time or part-time Level I, Peace Officer as authorized in the CRS. So an officer hired as a part-time officer could be paid for working at a concert where the event promoter is paying the town to have the security and we are currently hiring officers from outside jurisdictions to staff these events. Recommended Program: The police department recommends forming a Reserve Police Officer Program consisting of Level IIIa Reserve Officers, (200 hour academy) and Level Ipart-time officers (443 hour academy) to allow for the compensation of part-time officers when deemed appropriate by the department. A media campaign. would launch. the recruiting process to determine if there are qualified candidates with POST certificates, either Level I or IIIa. Applicants would be subject to the same hiring criteria as regular officer candidates are required to complete, including: oral interview, physical agility test, written test, polygraph, psychological exam, medical exam, drug test and a thorough background investigation. If the initial recruiting process was unsuccessful, then untrained reserve officer applicants would be solicited, and a reserve officer academy would be held, in conjunction with the Larimer County Sheriff's Department Reserve Academy. The academic course would be taught in Vail, and the skills training course in Ft. Collins. Once hired, reserve or part-time officers would be required to donate sixteen hours per month to the town, including continual monthly training meetings, for updates on basic and advanced skills as peace officers. The reserve program would also allow experienced, regular, full-time officers, additional leadership opportunities as program coordinator.. Costs: The police department estimates the cost for hiring reserve and part-time officers to be approximately $750 per officer and their uniform costs. Currently, we have a large supply of used equipment we will use to reduce the cost of providing uniforms to the Reserve Unit. ', Salary for part-time officers will come from outside vendors, or currently budgeted in-kind service accounts, while working extra duty assignments. Advertising expenses for the recruiting campaign are estimated at $2,000. T - - T Mary Caster -Reserve Program 603.doc Page 3 The town is required to pay for worker's compensation benefits if a reserve or part-time officer is injured. Human Resource Director, John Power, believes there will not be an increase in our worker's compensation costs unless a member of this program is injured. There will be increased overtime costs for full-time officers involved in training and coordinating the Reserve Officer Program. These costs should be significantly outweighed by replacing outside officers with additional Vail Reserve Officers. Conclusion: A Reserve Officer Program for the Town of Vail will enhance the high quality police service to t', citizens and guests of Vail, with the benefit of cost reductions. This is truly an example of doing fi more with less and tapping into the spirit of service in the Vail Valley. ~~ As a final note, l have been involved in running reserve programs consisting often to 42 reserve officers. These programs have had significant intrinsic rewards to other police departments [have served. The rewards include: reserves providing a mature presence within the force, which is significant in Vail, considering two-thirds of our patrol force have less than two years of experience. Reserves with outside professions bring important levels of expertise to unusual occurrences. This type of program will provide a recruiting pool for future full-time officers and reserves who are volunteering, to significantly elevate the spirit of service within the department. i 2003 Project Matrix Today's Date: 6/26/03 A=The buck stops R= For moving forward C= Have info 1=Who else here responsible needs to know? people need to move forward No. of remaining VTC meeting days: 1st Reading for Ballot Question, 3; November Election, 8 PROJECT/ CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE 2003 BALLOT Review of community survey Done Suzanne Suzanne Pam Community findings Review of 5-Year Capital Projects ongoing at each VTC Greg, Judy Pam, dheads Community lists, i.e election needs VTC work session in June and July Election ballot go/no Review of ballot options ongoing at each VTC Pam, Greg, Judy, Matt Community go decision by 6/1/0 VTC work Russ, Suzanne session in June and July 8/5/0 First Reading of ballot question VTC, 8/5/03 VTC Matt Pam, Greg, Judy Community Evening Russ, Suzanne 8119/0 Second Reading of ballot question VTC, 8/19/03 VTC Matt Pam, Greg, Judy Community Evening Russ, Suzanne 2004 BUDGET Council direction needed on Done VTC Pam Judy Community VCBA/WCTB future funding Preparation of budget timetable VTC, 6/17/03 Judy Judy Pam dheads work session BUSINESS Executive session discussion with Done Matt Matt Pam, Judy VCBA IMPROVEMENT town attorney DISTRICT Council direction on $15,000 Done VTC Matt Business business unding request community community Council direction on business ? VTC Pam, Judy business license fee community Page 1 PROJECT MATRIX 2003 PROJECTI CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE Council direction on Commission ? VTC Pam, Judy, CSE Community on Special Events CONFERENCE Need Council site selection Done VTC Pam, Russ, Greg Judy, Matt Community CENTER decision/direction; report-out on parking charette Appointment of Oversight Done VTC VTC Pam Community Committee Need Council decision/direction TBD VTC Oversight Committee, Russ, Greg, Matt, Community on project manager Pam Judy Review RFP for business plan Done VTC Russ Forrest Oversight and update of market analysis Committee (program verification) Design-build RFP Late Summer VTC Oversight Committee, Judy, Matt Community after business Pam, Russ, Greg plan approved DONOVAN PARK Approve contract for pavilion In process VTC Greg Pam, Matt Community operation; set rates Discussion of soccer field VTC-VRD scheduling/lawn care/ irrigation subcommittee TBD 9/1/0 Complete construction Greg Greg VTC Community EAGLE COUNTY Facilitate independent audit of VTC Ludwig, Pam partner agencies community CONSOLIDATION ~ county and towns to identify areas COST-SHARE of duplication and revenue sharing FIRE SERVICES Independent analysis of existing Done Pam Pam VTC Community 6/3103 studies 6/2/0 RFQ for architectural services Done Pam Pam John, Greg, Russ, Matt Council decision on fire service Done VTC Pam John, Greg Community levels and related facilities 6/17/0 RFP for architectural services VTC Staff John, Greg Community Page 2 PROJECT MATRIX 2003 PROJECT/ CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE FIREWISE CODE Determine how to integrate October, 2003 VTC Russ Bill Carlson CHANGES Firewise principles into DRB regulations GRFA Proposal on reforms to GRFA Under review by VTC Russ, PEC Bill Gibson Community regulations PEC -70 NOISE Completion of East Vail berms Greg Greg CDOT Community MITIGATION Jersey barriers Greg Greg CDOT Community Noise wall demonstration Greg Greg CDOT Community Speed/ noise enforcement State Patrol truck VTC Dwight Greg, CDOT Community inspections, July LIONSHEAD Community parking agreements To be negotiated VTC Pam, Greg, Russ Dwight Community REDEVELOPMENT Review of Urban Renewal Plan New revisions by VTC Pam, Russ Judy, Greg, Matt Community and recommendations from June 1, 2003 Lionshead Task Force 5/6/03 Review of public projects to Done VTC Greg, Russ Judy, Pam Community include transit center Formation of URA/Implementation August, 2003 VTC Russ Pam, Matt, Greg, Community of TIF Judy CDOT cost-share agreement Greg Greg Pam, Russ, Judy VTC VRI/Com Dev Staffing Prior to Russ Russ, Greg, John Pam, Matt, Judy, VTC agreements application being JP submitted MIDDLE CREEK Construction anticipated to begin Bonding approval Russ Nina VTC, DEVELOPMENT 7/01/03 in June 2003 Community PROJECT PARKING Review of 02-03 season; 7/9/03 Parking VTC Greg, Parking Task Community Community modifications for 03-04 Task Force MTG Force 7/15/03 Evening Page 3 PROJECT MATRIX 2003 PROJECT/ CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE Expansion of community parking Done VTC Greg, Russ, Parking Community Community capacity; parking charette report- Task Force out RED SANDSTONE Cost-share request to Eagle VTC Pam VRD Community INDOOR MULTI- County School District to augment PURPOSE REC $150K + in-kind from TOV, $400K FACILITY from Water District, $250K from Vail Resorts, $600K from RE50J Identify interim location options for VTC Pam, Greg, Russ VRD Community gymnastics post 8-04 lease Determine if parking Greg Greg, Russ, Pam VTC, RES, VRD Community improvements at Red Sandstone School are needed ROAD TRIP (Aspen, Russ Snowmass, Telluride, Durango) ROLE OF TOWN Recreation philosophy discussion, TOV-VRD VTC Pam dheads, VRD Community GOVERNMENT re: Ice Dome, Skate Park, Indoor subcommittee Recreation work (Recreation, Culture, What businesses are we in? VTC Pam dheads Community Education, Economic Development - as part of overall roles discussion for VRD) STEPHENS PARK Schedule review of pilot program VTC, 2/17/04 PILOT PROGRAM and determine if off leash policy is News release (Dog Park) to be allowed permanently 5/12/03 2/18/04 Page 4 PROJECT MATRIX 2003 PROJECTI CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE SIGN CODE Develop a revised sign code that July, 2003 VTC Russ DRB, Business Business REVISION is easier to understand and Community community enforce TIMBER RIDGE Friendly condemnation action in July, 2003 Pam, Russ Nina, Judy, Matt Steve Jeffers VTC, District Court Community TOWN MANAGER Applications due May 23 Done; 164 VTC Search firm JP Community SEARCH applicants Fall 2003 Candidate screening June 17 VTC 6/17/2003, VTC Search firm JP Community WS Interviews July 10-11 VTC VTC JP Community VAIL ICE DOME Cost-share request to Eagle Letter sent 5/9/03 VTC Pam Vail Jr. Hockey, user groups County Commissioners for set- VRD u p/tear-down Vail Jr. Hockey fund-raising Vail Jr. Hockey Vail Jr. Hockey VTC, VRD user groups campaign Recreation philosophy discussion 5/20/03 WS VTC Pam VRD Community VAIL MEMORIAL DRB Application 6/18 DRB Mtg PARK 2004 Opening Development review process, Task Force Russ dheads Community DRB Creation of 501c-3 VTC Task Force Matt Community Rezoning Task Force Russ Community VAIL VILLAGE Need Council direction on Done VTC Greg Pam Community STREETSCAPE snowmelt PEC review of Master Plan 6/9/03 PEC Page 5 .PROJECT MATRIX 2003 PROJECT/ TARGETED COMPLETION DATE CURRENT STATUS/ DIRECTION NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED Preparation of phased construction schedule with input from Water District, adjacent property owners, business community Greg Greg adjacent property owners, Water District, VCBA Community Exploration of Downtown Development Authority/TIF 6/17/03 VTC WS VTC Russ Pam, Russ, Matt, Judy Community VILLAGE REDEVELOPMENT PROJECTS Loading and delivery Greg Greg Pam, Russ, Dwight, Matt affected properties, Community Application of $1 million VRI streetscape Greg Greg Pam, Russ, Judy, Matt Page 6 PROJECT MATRIX 2003 DRAFT06/26/2003 MASTER DEED RESTRICTION FOR THE OCCUPANCY OF UNITS AT TIMBER RIDGE VILLAGE APARTMENTS DRAFT06/26/2003 TABLE OF CONTENTS MASTER DEED RESTRICTION FOR THE OCCUPANCY OF UNITS AT TIMBER RIDGE VILLAGE APARTMENTS ARTICLE 1 DEFINITIONS ............................................................ ARTICLE 2 AGREEMENT BINDS THE PROJECT .............................. ARTICLE 3 QUALIFIED RESIDENTS ............................................. ARTICLE 4 RESTRICTIONS ......................................................... 4.1 Occupancy 4.2 No Discrimination 4.3 Vacancy ARTICLE 5 RESIDENCE .............................................................. 5.1 Units Only For Residential Purposes 5.2 Eviction Upon Violation Of This Agreement ARTICLE 6 UNIT LEASE APPROVAL AND TERMINATION ................ 6.1 Unit Lease Approval 6.2 Owner's Right to Terminate Lease ARTICLE 7 INSPECTION AND HEARING FOR BREACH ..................... 7.1 Inspection Upon Reasonable Cause 7.2 Notice of Violation and Hearing Request 7.3 Hearings ARTICLE 8 REMEDIES ARTICLE 10 TERMS OF RESTRICTION ARTICLE 11 GENERAL PROVISIONS 11.1 Notices 11.2 No Indemnity 11.3 Severability 11.4 Choice of Law 11.5 Successors 11.6 Section Headings 11.7 Waiver 11.8 Gender and Number 11.9 Further Actions 11.10 Modifications EXHIBIT A -Land Description EXHIBIT B -Timber Ridge Village Apartments Employee Housing Rental Guidelines DRAFT06/26/2003 MASTER DEED RESTRICTION FOR THE OCCUPANCY OF UNITS AT TIMBER RIDGE VILLAGE APARTMENTS THIS MASTER DEED RESTRICTION FOR THE OCCUPANCY OF UNITS AT TIMBER RIDGE VILLAGE APARTMENTS ("Agreement") is made and entered into this day of July, 2003. WITNESSETH: WHEREAS, the Town of Vail ("Town") is the owner of certain property and improvements thereon more fully described in Exhibit A attached hereto and incorporated herein by this reference ("the Project"); and WHEREAS, the above referenced Project is a 198-unit, multi-family, rental housing development; and WHEREAS, it is the intent of the Town that the Units in the Project shall be rent- restricted to, and restricted to use and occupancy by, Qualified Residents (except as otherwise permitted herein) as that term is defined in this Agreement; and WHEREAS, the Town desires to maintain the affordable, rental housing on the property in perpetuity. NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledges, the Town hereby declares, covenant and agrees as follows: ARTICLE 1 DEFINITIONS "County" shall mean the County of Eagle, Colorado. "Employee Housing Rental Guidelines" or "Rental Guidelines" shall mean those certain guidelines for this Project attached as Exhibit B hereto and incorporated herein by this reference, which contain the eligibility standards for certifying and prioritizing Qualified Residents, subject to and in accordance with the provisions of Article 3 of this Agreement. "Qualified Residents" shall mean one or more natural persons who are certified by the Owner and/or Property Manager as Qualified Residents for the Project pursuant to the Rental Guidelines as applied to the Project, and in accordance with Article 3 of this Agreement. DRAFT06/26/2003 "Propert Manager" ("Manager") shall mean the management company retained by the Owner to operate the Project in accordance with this Deed Restriction. "Unit" shall mean the residential dwelling units constructed on the Property for rent to Qualified Residents subject to the terms of this Agreement. "Owner" shall mean the current and all future owners of the Project. "Master Lease Unit(s)" shall mean any Unit(s) leased by a business located in the Town of Vail for the purpose of being rented to their employees as Qualified Residents. ARTICLE 2 AGREEMENT BINDS THE PROJECT This Agreement shall constitute covenants running with the title to the Project as a burden thereon, for the benefit of, and enforceable by the Town. This Agreement shall bind the Owner and all Qualified Residents or occupants of the Units. Each and every occupant of a Unit within the Project shall be personally obligated hereunder for the full and complete performance and observance of all covenants, conditions and restrictions contained herein during each occupant's respective period of occupancy of a Unit. Each and every conveyance of the Project or a portion thereof, or interest therein, for all purposes, shall be deemed to include and incorporate by this reference, the covenants contained in this Agreement, even without reference to this Agreement in any document of conveyance. ARTICLE 3 QUALIFIED RESIDENTS 3.1 Except as otherwise provided herein, the use and occupancy of the Units shall be limited exclusively to rental housing for natural persons who are certified by Owner and/or Manager as Qualified Residents, or other residents as set forth herein, under the Rental Guidelines with respect to the location of such person's place of employment and other criteria that maybe set forth therein. 3.2 Owner accepts, and agrees to comply with, the provisions contained in the Rental Guidelines with regard to qualification and prioritization of Qualified Residents. In accordance with the above criteria as more fully set forth in the Rental Guidelines, Owner and/or Manager shall lease vacant Units to persons who hold the highest priority pursuant to the Rental Guidelines. In the event that two or more potential residents hold the same preference designation, Owner and/or Manager may elect to impose either a lottery system or other objective methodology to select one of the potential residents. Notwithstanding anything to the contrary contained in this Article 3 or in the Rental Guidelines, Owner and/or Manager shall not be required to keep a Unit vacant if a Qualified Resident cannot be located to rent the Unit, or if an otherwise Qualified Resident has a negative credit history, or is otherwise deemed to be an unacceptable tenant by Owner and/or Manager in their reasonable business judgment due to negative DRAFT06/26/2003 factors revealed during Owner and/or Manager's background check of the applicant, all as more specifically set forth in the Rental Guidelines. 3.3 Owner and/or Manager shall not lease any Unit to anon-Qualified Resident(s) except as specifically permitted under certain circumstances by the Rental Guidelines. Prior to the expiration of any lease to anon-Qualified Resident, Owner and/or Manager shall diligently seek to lease the Unit to a Qualified Resident in accordance with this Article 3 and the Rental Guidelines. ARTICLE 4 RESTRICTIONS 4.1 Occupancy. Any Qualified Resident and/or occupants of the Project shall not engage in any business activity on or in a Unit. Owner and/or Manager shall not permit any use or occupancy of a Unit except in compliance with this Agreement. 4.2 No Discrimination. In the rental and occupancy of the Units, there shall be no discrimination on the basis of age, race, creed, color, sex, sexual orientation, disability, religion, national origin, marital status or affiliation. 4.3 Vacancy. When a Unit becomes vacant, Manager shall promptly make it available and actively market said Unit for lease to another Qualified Resident in accordance with Article 3 hereof and the Rental Guidelines. ARTICLE 5 RESIDENCE 5.1 Units Only For Residential Purposes. The Unit shall only be leased and occupied by residents who will utilize the Units as their principal place of residence, except under limited circumstances as specifically set forth in the Rental Guidelines. A principal place of residence shall mean the dwelling in which one's habitation is fixed and to which a person, whenever he or she is absent, has a present intention of returning after a departure or absence therefrom. In determining what is a principal residence, Owner and/or Manager may take into account, without limitation, the following circumstances relating to a particular resident: location of business pursuits; employment and income sources; residence for income tax purposes; residence of parents, spouse and children, if any; location of personal and real property; motor vehicle registration; and voter registration, all as more fully set forth in the Rental Guidelines. DRAFT06/26/2003 5.2 Eviction Upon Violation Of This Agreement. In the event a Qualified Resident: (1) changes residence, (2) ceases to utilize the Unit as his or her principal place of residence, (3) ceases to be employed within the required geographic area and for the period of time set forth in the Rental Guidelines, except as otherwise provided in Section 3.2 above, (4) engages in any business activity on or in a Unit, or (5) violates any of the other provisions of this Agreement, the Qualified Resident shall be in default hereunder and under his or her own lease. Upon becoming aware of such event, Owner and/or Manager shall immediately take action in accordance with all applicable laws and Rental Guidelines administered through this Agreement to evict the resident, and shall diligently attempt to re-lease the Unit to another Qualified Resident in accordance with Article 3 hereof and the Rental Guidelines. ARTICLE 6 UNIT LEASE APPROVAL AND TERMINATION 6.1 Unit Lease Approval. Units shall not be leased or otherwise occupied unless the occupant has executed a lease in a form approved by the Owner. Before Manager enters into its first lease of a Unit in the Project, Manager shall submit to Owner the form of the lease Manager intends to use. Once so approved by Owner, Manager shall make no material changes to the terms of the approved lease form without the prior written consent and approval of the Owner. The lease shall include a clear reference to this Agreement and a brief summary of this Agreement, including Owner's remedies upon a violation or breach of the terms of this Agreement. The lease shall contain a statement that incorporates the terms and conditions of this Agreement. Upon request from the Owner, Manager shall immediately provide Owner with a signed copy of any Unit lease, and any other information requested by the Owner reasonably related to a tenant's qualifications related to his or her occupancy of the Unit. 6.2 Owner's and/or Manager's Right To Terminate Lease. Nothing herein shall prevent Owner and/or Manager from terminating the Unit lease of a Qualified Resident based upon the tenant's breach of the terms of the Unit lease. ARTICLE 7 INSPECTION AND HEARING FOR BREACH 7.1 Inspection Upon Reasonable Cause. In anon-emergency situation, and in the event that Owner and/or Manager have reasonable cause to believe that a Unit tenant or any other Unit occupant is violating any provision of this Agreement, Owner and/or Manager through its authorized DRAFT06/26/2003 representative, may inspect the Unit or the lease files kept for the Project between the hours of 8:00 am and 5:00 pm, Monday through Friday, after providing the tenant and/or Unit occupant with no less than 24 hours written notice, which notice to tenant maybe given by posting on the front door of the applicable Unit. Nothing contained in this section shall otherwise preclude Owner and/or Manager from accessing a Unit in an emergency situation where there is an imminent threat to person(s) or property. 7.2 Notice Of Violation And Hearing Request. In the event that an alleged violation of this Agreement is discovered, Manager shall send a notice of alleged violation to Owner and the Unit tenant, if applicable, detailing the nature of the violation and allowing Manager and the Unit tenant, if applicable, ten (10) calendar days from and after the date that the notice is given to cure said violation to the reasonable satisfaction of Owner. Notice to a Unit tenant maybe given by posting on the front door of the applicable Unit. Said notice shall state that Manager and the Unit tenant, if applicable, may request a hearing before Owner within ten (10) calendar days from and after said notice is given to determine the merits of the allegations. If no hearing is requested and the violation is not cured within the ten (10) calendar day period as determined by Owner and/or Manager, said violation and failure to cure shall be considered in violation of this Agreement. 7.3 Hearings. (a) Conduct: When requested by Manager or the Unit tenant under this Article, hearings before the Owner shall be conducted in accordance with the provisions set forth herein. (b) Setting Date: Upon the timely filing of a request for hearing by the Manager or the Unit tenant pursuant to this Article, the date for the hearing shall be set by Owner, which shall not be more than thirty (30) days from the date of the filing of such request. (c) Notice: Not less than fifteen (15) days prior to the date set for the hearing before the Owner, Owner shall cause a copy of the notice of hearing to be sent to Manager and the Unit tenant, if applicable, pursuant to Section of this Agreement (notice to Unit tenant maybe posted on the front door of the applicable Unit). The within required notice shall state the date, time and place of hearing, name of the person(s) requesting the hearing, a brief statement of the subject matter of the hearing, and a statement that information relating to the proposed hearing is available in the Owner's office during regular business hours for review and inspection by the public. (d) Evidence: Hearings before the Owner shall be conducted in such a manner as to afford all interested parties the opportunity to submit for the record, exceptions, contentions, and arguments with respect to the issues involved; provided, that the Owner may limit the taking of evidence to evidence not previously submitted and made a matter of record. The Owner shall base its determination upon statements DRAFT06/26/2003 contained in the request for hearing, upon reports from Owner's staff and consultants, if any, and upon evidence represented to Owner at the hearing. The decision of Owner following such hearing shall be final for the purposes of determining if a violation has occurred. ARTICLE 8 REMEDIES 8.1 Owner shall have any and all remedies provided by law and in equity for violation or prospective violation of this Agreement or any of its terms, including but not limited to: (i) damages, including but not limited to damages resulting from the leasing of a Unit in violation of this Agreement; (ii) specific performance; and (iii) injunction, including but not limited to an injunction requiring eviction of the tenant(s) and an injunction to prohibit the occupancy of a Unit in violation of this Agreement. Upon default by Manager hereof, Owner shall be entitled to exercise its remedies pursuant to the applicable Management Agreement and Colorado law. 8.2 If the Unit tenant is found to be in violation of any of the provisions of this Agreement by Owner and/or Manager as set forth in Article 8, the Unit tenant shall be subject to a penalty of up to one hundred dollars ($100.00) per violation as determined by Owner in each instance. Each occurrence is hereby deemed to be a separate violation of this Agreement, and the within penalty maybe imposed for each and every day during any portion of which a violation is found to have been committed or continued by Unit tenant. 8.3 In addition to the remedies set forth herein, Owner shall have all of the remedies set forth in the Rental Guidelines. ARTICLE 9 TERM OF RESTRICTION 9.1 As to each Unit, this Agreement shall be effective and binding in perpetuity. 9.2 The Owner shall release and waive its ability to enforce the Deed Restriction contained herein, in the event of foreclosure. ARTICLE 10 GENERAL PROVISIONS 10.1 Notices. All notices and demands required or permitted under this Agreement shall be in writing as follows: (1) by actual delivery of the notice to the party entitled to receive it; (2) by mailing such notice by certified mail, return receipt requested, in which case the notice shall be deemed to be given three days after the date of its mailing; (3) by Federal Express or any other overnight carrier, in which case the notice shall be deemed to be DRAFT06/26/2003 given as of the date it is sent; or (4) by facsimile to the facsimile number of the appropriate party indicated below, in which case it will be deemed to be received at the time indicated on the facsimile confirmation report. All notices which concern this Agreement shall be sent or delivered, as the case maybe, to the address or facsimile number of the appropriate party as set forth below, except if changed by a party by notice pursuant hereto: If addressed to Owner: Timber Ridge Affordable Housing Corporation c/o Town of Vail 75 South Frontage Road Vail, CO 81657 Attn: Finance Director Fax: 970.479.2157 With a copy to: Timber Ridge Affordable Housing Corporation c/o Town of Vail 75 South Frontage Road Vail, CO 81657 Attn: Town Attorney Fax: 970.479.2157 If addressed to Manager: Corum Real Estate Group Inc 5251 DTC Parkway, Suite # 200 Greenwood Village, CO 80111 Fax: 303.796.2015 If addressed to a Unit tenant: To the Unit address of the tenant. 10.2 Severability. Whenever possible, each provision of this Agreement and any other related document shall be interpreted in such a manner as to be valid under applicable laws, ordinances, rules, regulations, rulings, orders, requirements and guidelines of federal, state and local authorities and agencies applicable to the Project; but if any provision of any of the foregoing shall hold to be invalid or otherwise prohibited under said laws, ordinances, rules, regulations, rulings, orders, requirements or guidelines of federal, state and local authorities and agencies applicable to the Project, such provisions shall be DRAFT06/26/2003 ineffective to the extent of such invalidity or prohibition without invalidating the remaining provisions of the Agreement. 10.3 Choice of Law. This Agreement and each and every related document are to be governed and construed in accordance with the laws of the State of Colorado. 10.4 Successors. Owner may assign this Agreement. Upon such assignment, Owner shall be relieved of any further liability hereunder. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors, and assigns of the Parties. 10.5 Section Headings. Article and Section headings within this Agreement are inserted solely for convenience or reference, and are not intended to, and shall not govern or limit the construction of any terms or provisions contained herein. 10.6 Waiver. No claim of waiver, consent or acquiescence with respect to any provision of this Agreement shall be valid against any party hereto except on the basis of a written instrument executed by the Parties to this Agreement. However, the party whose benefit a condition is inserted herein shall have the unilateral right to waive such condition. 10.7 Gender and Number. Whenever the context herein so requires, the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. 10.8 Further Actions. Owner hereby reserves the right to execute such further documents and take such further actions as maybe reasonably required to carry out the provisions and intent of this Agreement or any other agreement or document relating hereto or entered into in connection herewith. 10.9 Modifications. This Agreement and any modifications thereto shall be effective only when made in writing, and recorded with the Clerk and Recorder of the County. DRAFT06/26/2003 (The rest of this page intentionally left blank. Signature page follows.) DRAFT06/26/2003 EXHIBIT A Legal Description of the Land DRAFT06/26/2003 EXHIBIT B TIMBER RIDGE VILLAGE APARTMENTS EMPLOYEE HOUSING RENTAL GUIDELINES DRAFT06/26/2003 I. PURPOSE, ADMINISTRATION AND DEFINITIONS: A. Purpose: The purpose of these Timber Ridge Village Apartments Employee Housing Rental Guidelines ("Rental Guidelines") is to set forth the occupancy eligibility requirements for the deed restricted employee housing rental units ("Units") located within Timber Ridge Village Apartments ("Project"). Prior to leasing or renewing a lease for a Unit in the Project, the occupant must sign an individual acknowledgement of acceptance of the terms of these Rental Guidelines and the Deed Restriction. B. Administration: In accordance with the Deed Restriction, Owner and/or Manager shall administer these Rental Guidelines, including but not limited to, making determinations regarding the eligibility and priority of applicants to rent and occupy a Unit as a Qualified Resident as set forth herein. Owner and/or Manager will enforce these Rental Guidelines in accordance with Sections _ and _ herein. The Rental Guidelines may be amended from time to time by the Owner with the consent of the Town, provided that such amendment does not adversely affect direct covenants of the Owner's Lenders. C. Definitions: In addition to the other definitions provided within these Rental Guidelines and Deed Restriction, and unless otherwise expressly provided herein, all capitalized terms herein shall the meanings attributed to them as -set forth or defined. II. QUALIFIED RESIDENT APPLICATION REQUIREMENTS, SCORING AND PRIORITY; EXCEPTIONS TO FOR TENANCY BY CERTAIN NON-QUALIFIED RESIDENTS UNDER LIMITED CIRCUMSTANCES: A. Application Requirements: Except as otherwise provided herein or in the Deed Restriction, in order to be eligible for consideration to rent a Unit a person must first be certified as a Qualified Resident. A "Qualified Resident" for all purposes hereof shall be a natural person employed in the Town of Vail, or Eagle County, Colorado. In order to become certified as a Qualified Resident, a person must first provide the following information on an application to be provided by Owner and/or Manager: 1. Verification of applicant's place of current employment in Vail or Eagle County at a business that holds a valid and current business license (e.g., wage stubs, employer name, address, telephone number and other appropriate documentation as requested by Owner and/or Manager. 2. a. Evidence of the following: (i) applicant's employment averages or will average, prior to occupancy of any Unit, at least 30 hours per week on an annual basis; (ii) that such level of employment is expected to be maintained for as long as he/she lives in the Unit; and (iii) at least 75% of DRAFT06/26/2003 the applicant's income is earned by working at a business located in Vail or Eagle County. At the time of application, the applicant shall provide the Owner and/or Manager with a signed authorization allowing verification of such information with applicant's current employer(s); or b. evidence that the applicant is a retired individual sixty years or older, who has previously worked a minimum of five years in Eagle County for an average of at least 30 hours per week on an annual basis. Valid Driver's License or State issued identification; 4. Residency history for at least the prior three (3) years, including: prior physical address and years lived there (e.g. 2003-2000) Additionally, proof of all years of employment in the Town of Vail and/or Eagle County should be submitted for priority determination purposes; 5. Employment history, prior three (3) years; including: prior employer(s)' name(s), address(es), telephone number(s); and the years worked there (e.g. 2003- 2000). Additionally, proof of all years of employment in the Town of Vail and/or Eagle County should be submitted for priority determination purposes; 6. Any other documentation which the Owner and/or Manager deems necessary to make a determination of eligibility; 7. A signed statement certifying and acknowledging: (a) that all information submitted in such application is true to applicant's best knowledge; (b) that the applicant intends to occupy the Unit as his/her principal residence; (c) that the applicant understands that he/she may not sublet the Unit without prior written approval of Owner and/or Manager; (d) that the applicant does not own improved residential real estate within Eagle County, and will refrain from such ownership during occupancy of the Unit; (e) that the applicant authorizes Owner and/or Manager to verify any and all past or present employment and residency information, and all other information submitted by an applicant; and (f) that applicant understands that, as set forth in Sections _ and _ of these Rental Guidelines, the Owner and/or Manager reserve the right to review any applications and take any appropriate action regarding such application. B. Scoring Qualified Resident Applications: The following system shall be utilized by Owner and/or Manager to score Qualified Resident applications to lease the Units: 1. For each Qualified Resident whose current place of employment is within the physical boundaries of the Town of Vail (or on Vail Mountain): Three (3) points shall be awarded. DRAFT06/26/2003 2. For each Qualified Resident whose current place of employment is outside the physical boundaries of the Town of Vail (or not on Vail Mountain), but within Eagle County: One (1) point shall be awarded. 3. Applications for Units will be based on the total cumulative points awarded to the Qualified Residents on each such application. A maximum of four (4) Qualified Residents per application for a Unit will be scored and awarded points, with a maximum of 12 points awarded. C. Priorit~pplications: All applications received from potential residents within the one-month period that begins at 12 noon on the 15th of the first month and ends at the 11:59 a.m. on the 15th of the next month, shall create the first month's priority waiting list. Subsequent months' priority lists shall be created in the same manner, and shall be subordinate and cumulative to the previous month's priority list. In the event that two or more potential residents hold the same preference designation on any given month's waiting list, Owner and/or Manager may elect to either impose a lottery system or other objective methodology to select one of the potential residents. D. Master Lease Units: Master Lease Units will be rented in accordance with the Master Lease holders own priority system, provided that said priority system is in compliance with these Rental Guidelines and Deed Restriction. E. Lease Term And Renewal: The Units shall be leased to Qualified Residents, and maybe renewed to Qualified Residents, for periods of no less than six (6) months and no greater than twelve (12) months in duration. F. Interpretation: In evaluating a potential application to lease a Unit, the Owner and/or Manager shall be guided by the following: 1. An applicant's physical place of employment is controlling, not the mailing address of such place. 2. An applicant's employment on Vail Mountain shall be considered to be within the Town of Vail for eligibility and priority purposes. 3. Seasonal work and part time work shall be counted on a pro-rata basis. Seasonal work and part time work alone may not be adequate to meet the minimum 30 hours per week average annual requirement. This type of work may need to augment other employment to the minimum eligibility requirements. 4. For the purposes of determining the standing of applicants each year of employment reflects one point. For the portion of time in excess of a complete year, Owner and/or Manager will round to the next highest number if the time exceeds six months and one day. If the time is less than six months, Owner and/or Manager will round down. DRAFT06/26/2003 5. Persons who own improved residential real property located in Vail or Eagle County are ineligible for Qualified Resident status. 6. Claims of employment by an applicant that are unable to be verified by Owner and/or Manager will not be utilized in determining an applicant's eligibility or priority. 7. Potential resident applications, and all accompanying documentation, shall become the property of the Owner and/or Manager, and will not be returned to the applicant. G. Non-Applicability To Project Property Managers: Notwithstanding the Qualified Resident requirements contained herein, the Owner and/or Manager's. designated Property Manager(s) shall be permitted to occupy up to two (2) Units without being certified as Qualified Resident(s). H. Leasing Of Units To Non-Qualified Residents: 1. In the event that there are no Qualified Residents available to rent a particular Unit under this Section II, the Owner and/or Manager may rent such Unit to anon-Qualified Resident who will occupy the Unit as their principal place of residence for a lease term not to exceed six (6) months. Before re-leasing the Unit to such non-Qualified Resident (or to any other non-Qualified Resident), the Owner and/or Manager shall take reasonably diligent steps to lease the Unit to a Qualified Resident. 2. In no event may Owner and/or Manager lease a Unit to any resident who will not occupy the Unit as their principal place of residence as set forth in Article _ of the Deed Restriction, unless first expressly approved in writing by Owner after making findings that extraordinary circumstances and hardship on the Owner and/or Manager exists to justify leasing the Unit to a tenant who will not occupy the Unit as their principal residence. Such tenancy shall be on a month-to-month basis only. I. Misrepresentation. Any misrepresentation by an applicant in submittal material shall disqualify such applicant from being eligible to lease a Unit, and shall be grounds for eviction if such misrepresentation is revealed after such tenant's occupancy. rr PROJECT AGREEMENT THIS PROJECT AGREEMENT (the "Agreement") is made as of July I, 2003, by and between TIMBER RIDGE AFFORDABLE HOUSING CORPORATION, a Colorado nonprofit corporation (the "Corporation") and the TOWN OF VAIL, COLORADO (the "Town"). RECITALS: A. The Corporation has been organized under the Colorado Revised Nonprofit Corporations Act. to acquire property in order to provide affordable housing facilities, for the benefit of the Town and its inhabitants. B. The Corporation shall issue its Timber Ridge Affordable Housing Corporation Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the "Series 2003A Bonds") in an aggregate principal amount not to exceed $20,000,000 and its Timber Ridge Affordable Housing Corporation Subordinate Housing Facilities Revenue Bonds, Series 2003B (the "Series 2003B Bonds," and together with the Series 2003A Bonds, the "Bonds") in an aggregate principal amount not to exceed $1,500,000 for the purpose of financing a portion of the acquisition cost of "Timber Ridge Apartments" located within the boundaries of the Town {the "Project") on the property described in Exhibit A .hereto, to provide dwelling accommodations for employee's living and working within the Town and the County. C. The Town Council of the Town (the "Town Council") has determined to loan certain funds to the Corporation in order to assist in financing the acquisition cost of the Project for the public purpose of preserving the Project as an affordable housing resource for the ', community. D. Repayment of such loan shall be governed by the terms of this Agreement and a promissory note the form of which. is attached hereto as Exhibit B (the "Note") to be executed by the Corporation for the benefit of the Town. E. The Series 2003A Bonds shall be issued pursuant to an Indenture of Trust dated as of July I, 2003 (the "Series 2003A Indenture") between the Corporation and U.S. Bank National Association, as trustee (the "Series 2003A Trustee"). F. The Series 2003B Bonds shall be issued pursuant to an Indenture of Trust dated as of July 1, 2003 (the "Series 2003B Indenture," and together with the Series 2003A Indenture, the "Indentures") between the Corporation and U.S. Bank National Association, as trustee (the "Series 2003 B Trustee"}. 111DE - 86736N - 140308 vt Matt Mire - ProjectAgreemenv2.doc Page 2 G. The Series 2003A Bonds, the Series 2003B Bonds and any Additional Bonds issued under the Indentures are referred to hereinafter as the "Bonds." H. Each of the Indentures provides for the creation of a "Bond Reserve '" ' Fund," to be funded in the amount of the "Bond Reserve Requirement" as defined irr the respective Indentures. L In the event either of the Bond Reserve Fund is not funded at the required ' Bond Reserve Requirement by and of each year, the Series 2003A Trustee or the Series 2003B Trustee, as the case may be, shall notify the Town Manager of any deficiency and, pursuant to this Agreement, the Town Council has agreed to replenish the respective Bond Reserve Fund to the extent provided herein. H. In the event the Town Council agrees, or has previously agreed as provided herein, to replenish the Bond Reserve Fund such appropriation shall be treated as an additional. loan by the Town pursuant to the terms set forth in this Agreement. All capitalized terms used herein, unless otherwise defined, shall have the meanings ascribed thereto in the Series 2003A Indenture. TERMS For good and valuable consideration, the receipt and sufficiency of .which is hereby acknowledged, the Town and the Corporation, on behalf of themselves and their respective successors and assigns, agree as follows: Section 1. Proiect Oaeration. The Corporation hereby covenants and agrees to operate the Project at standards required to provide decent, safe, and sanitary housing facilities ' at reasonable rental rates, in a sound and economical manner. Nothing herein or in any resolutions of the Town shall be interpreted to require the Town to undertake responsibility for ' operation of the Project. The Corporation shall comply with all Environmental Laws in connection with the operation and use of the Project. No Hazardous Materials are or will be discharged from the '? Project, directly or indirectly, except as authorized by any applicable governmental laws. I "Environmental Laws" means. the Comprehensive Environmental Response, Compensation and Liability Act of 1976 (CERCLA), 42 U.S.C. §§ 9601 et seg.; the Hazardous Substances Transportation Act, 49 U.S.C. §§ 5101 et sec.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et sec.; the Resource Conservation and Recovery Act (RCRA), as amended, 42 U.S.C. §§ 6901 et sue.; the Clean Water Act, 33 U.S.C. §§ 1251 et sec.; the Clean Air Act, 42 U.S.C. §§ 7401 et seg.; the Colorado Hazardous Waste Act, 11A C.R.S. § 25-15-101 et se,~c; the Colorado Radiation Control Act, 11A C.R.S. § 25-11-101 et sec; the Colorado Underground Storage Tanks Act, 11A C.R.S. § 25-18-101 et sue; the Colorado Air Quality Control Act, 1lA \\\DE - 86736/I • k137327 vl 2 IVlatt Mire - ProjectAgreemenv2.doc C.R.S. § 25-7-]01 et sec.; the Colorado Water Quality Control Act, l lA C.R.S. § 25-8-101 et seg.; any other federal or state statutes or city or county ordinances regulating the generation, storage, containment or disposal of any Hazardous Material or providing for the protection, preservation or enhancement of the natural environment; any rules or regulations promulgated pursuant to any of the foregoing statutes or ordinances; and any amendments, modifications or supplements of any such statutes, ordinances, rules or regulations. "Hazardous Materials" means any substances defined as "hazardous substances," "pollutants," "contaminants," "hazardous materials," hazardous wastes," or "hazardous or toxic substances" in any Environmental Law. The Corporation hereby agrees to pay, defend, indemnify and save the Town, the members of the Town Council, its mayor, officers, attorneys, employees, agents, accountants and staff, and the Trustee (collectively, the "Indemnified Parties") harmless from and against all liabilities, losses, damages, costs, expenses (including attorneys' fees), causes of action (whether in contract, tort or otherwise), suits, claims, demands and judgments of every kind, character and nature whatsoever arising out of or related to the Corporation's acquisition, equipping, renovation, improving and installation of the Project and during such period as the Corporation shall utilize the Project (collectively referred to herein as the "Liabilities"), including, without limitation, (1) any injury to or death of any person or damage to property in or upon the Project or growing out of or connected with the use, nonuse, condition or occupancy of the Project or any part thereof; or (2) violation by the Corporation of any law, ordinance or regulation affecting the Project or any part thereof or the utilization, occupancy or use thereof. The provisions of this paragraph shall not be available to any Indemnified Person who personally causes or contributes to any such Liabilities by reason of his or her own gross negligence or willful misconduct. Section 2. Project Loan. The Town hereby agrees to lend to the Corporation $1,000,000 to assist in the financing of the acquisition of the Project (the "Project Loan") and the Corporation hereby agrees to borrow such amount for such purpose.. The Project Loan shall be evidenced by the Note, which Note shall bear interest at the rate of 1.5% per annum. Payment of principal of and interest on the Project Loan shall be payable solely from Project revenues and such payments shall be subordinate to the Corporation's obligation to pay the principal of and interest on the Series 2003A Bonds and on the Series 20038 Bonds as the same shall come due. Payments on the Project Loan shall be made no more frequently than semi-annually on the business day nest succeeding the payment of the principal, if any, and interest on the Series 20038 Bonds as the same shall come due. Section 3. Bond Reserve Fund Advance. The Town hereby agrees to restrict or otherwise designate an amount equal to the total Bond Reserve Requirements for the Series 2003A Bonds and the Series 20038 Bonds (the "Town Reserve) and, within five business days of the receipt of written notice from the Series 2003A Trustee or the Series 20038 Trustee stating that an amount has been drawn from a Bond Reserve Fund, the Town's Finance Director is authorized to replenish the amount drawn from the respective reserve fund up to an aggregate amount not to exceed $ In the event any or all of the Town Reserve is used to restore any amounts expended from the Bond Reserve Funds, the Town Manager shall ask the Town - Rage-3 { \\\DE - 86736/1 - p 137327 vl Matt Mire - ProjectAgreemenv2.doc Council, and the Town Council hereby agrees to consider, but is not obligated to, appropriate moneys to replenish the Town Reserve from any legally available source. The Town Council may determine in its sole discretion, .but shall never be required, to make any appropriation so requested. Nothing provided in this Section shall create or constitute a debt, liability or multiple fiscal year financial obligation of the Town. Any appropriation to replenish a Bond Reserve Fund shall constitute a loan to the Corporation in an amount equal to such advance. Such advance shall bear interest until repaid at an interest rate of I.5% per annum. Payments on any reserve advance shall be made no more frequently than semi-annually on the business day next succeeding the payment of the principal, if any, and interest on the Series 2003B Bonds as the same shall come due. Section 4. Town Benefit. The Corporation covenants and agrees that all activities of the Corporation shall be undertaken for the benefit of the Town. Upon termination of this Agreement, the Town shall be entitled to acquire title to the Project without cost. Section 5. Right to Acpuire. The Town is hereby granted the right to obtain, at any time, fee title and exclusive possession of all the Project financed by the Bonds free from liens and encumbrances created by the Corporation related to the Bonds, but subject to Permitted Exceptions (as defined below), and any additions to such property, by (i) placing into escrow an amount sufficient to defease the Bonds and any obligations then owing the Bank or the Alternate Bank under the Credit Agreement, (ii) paying the reasonable costs incident to the defeasance, and (iii) complying with all other requirements of the Indentures. Section 6. Unencumbered Title. The Corporation hereby agrees that during any period amounts are owed to the Town hereunder it shall not permit any encumbrance of the Project other than ``Permitted Exceptions" as defined in the Deed of Trust, Financing Statement and Assignment of Rents and Revenues made by the Corporation for the Benefit of the Credit Bank, without the prior written consent of the Town. Section 7. Default Riehts. If pursuant to Article V[I of the Series 2003A Indenture, the Series 2003A Trustee declares the principal of any Series 2003A Bonds then outstanding to be due and payable and any foreclosure proceeding or other action is commenced under the Credit Agreement which could lead to the sale or other disposition of the property pledged thereunder, the Town is hereby granted an exclusive option to purchase all such property (including the Project), for the amount of the outstanding Bonds and any additional amounts owing under the Credit Agreement and accrued interest to the date of default. The Town shall have not less than 90 days from the date it is notified by the Trustee of such action in which to exercise the option, and not less than 90 days from the date it exercises the option to purchase the property. The Bank or Alternate Bank or other parties responsible for commencing any such foreclosure proceeding or other action shall be required to take any action necessary, including submission of requests for continuance of foreclosure to the Public Trustee of Eagle County, Colorado, in order to ensure that the Town has the full 90 day period referred to herein to exercise its option (which option shall be exercised by giving written notice of such exercise to the Trustee and the Corporation) and purchase the Project and such other property, including ensuring that the foreclosure sale does not occur prior to the expiration of the 90 day period 4 \\\DE - AG73G/I - # 137327 r I -- __ _ ~_ Matt Mire - ProjectAgreemenv2.doc ---^ Page 5 referred to herein. Nothing herein shall be construed to create any obligation of the Town to cure any Event of Default. In the event that the Bank or Alternate Bank's loan documents recorded in the records of the Clerk and Recorder of Eagle County, Colorado prior to this Agreement (or any replacement thereof), is foreclosed, either through public trustee's sale or judicial foreclosure, then upon compliance with the provisions of this Section 7 and expiration of all cure and redemption periods provided for under this Agreement or by statute, (i) this Agreement shall terminate and be of no further force or effect; (ii) neither the Town nor the Corporation shall have any right, title or interest in and to the Project arising out of this Agreement; (iii) any provisions of this Agreement permitting the Town to acquire title to the Project shall be void and of no force or effect; and (iv) the purchaser of title to the Project shall take title free and clear of this Agreement. Section 8. Indenture Rights; Approval of Town. The Corporation hereby covenants and agrees that the provisions of the Indentures granting any rights to the Town shall not be amended or modified without the consent of the Town. By execution hereof, the Town hereby consents to the provisions of the Indentures relating to the rights of the Town. Section 9. Consolidation or Merger. The Corporation hereby covenants and agrees that during the term of this Agreement it will maintain its corporate existence, will continue to be a nonprofit corporation duly qualified to do business in the State of Colorado, will not merge or consolidate with any person unless it first obtains the written consent of the Town. Section 10. Prohibition on Transfer. The Corporation hereby covenants and agrees that during the term of this Agreement it shall not sell, transfer, assign or lease (other than leases in the ordinary course of business for a period not greater than 24 months) all or any portion of the Project without the prior written consent of the Town. Section 11. Performance of Covenants. The Corporation hereby agrees to execute, acknowledge and deliver such documents as are reasonably requested by the Town to evidence any loan made hereunder and to execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered such instruments as the Town may reasonably require for the better assuring, transferring, pledging and hypothecating unto the Town all its rights and benefits hereunder. Section 12. Term. This Agreement shall terminate on the date upon which the Town Loan and any other advances hereunder have been paid an on which date no Bonds remain outstanding under the Indentures. Section 13. Burden on Property. This Agreement is a burden upon and runs with the property described in Exhibit A hereto and is binding upon the Corporation and upon all persons or entities with any right, title or interest to such property or any part thereof. \NDE - SG736/1 • N137327 vl p Matt Mire - ProjectAgreemenv2.doc Page 6 „ IN WITNESS WHEREOF, the undersigned have hereunto set their hand as of the day and year first mentioned above. TOWN OF VAIL, COLORADO TIMBER RIDGE AFFORDABLE HOUSING CORPORATION By: gy; Mayor President [SEAL] [SEAL] ATTEST: ATTEST: Town Clerk Secretary IN CONSIDERATION OF THE TOWN'S LOAN MADE HEREUNDER TO THE CORPORATION, U.S. BANK NATIONAL ASSOCIATION HEREBY CONSENTS AND AGREES TO THE PROVISIONS OF THIS AGREEMENT, INCLUDING WITHOUT ~' LIMITATION THOSE RIGHTS SET FORTH IN SECTIONS 5 AND 7 HEREOF. U.S. BANK NATIONAL ASSOCIATION Title: STATE OF COLORADO ) ss. CITY AND COUNTY OF DENVER ) The foregoing instrument. was acknowledged before me this _ day of July, 2003 by , as President, on behalf of TIMBER RIDGE AFFORDABLE HOUSING CORPORATION, a Colorado nonprofit corporation WITNESS my hand and official seal. My Commission expires: . [SEAL] Notary Public STATE OF COLORADO ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this _ day of July, 2003 by , as Mayor, on behalf of the TOWN OF VAIL, COLORADO. WITNESS my hand and official seal. My Commission expires: [SEAL] 7 \\\DE - 86736/1 - # 137327 v I Notary Public __ r -- --~~ .~_ _. ----- --- - -- --_ - ___ T_ _ -.~ _ - _ ~_ _ - -__ _ ~. E Matt Mire - ProjectAgreemenv2.doc Page 8 EXHIBIT A Description of Timber Ridee Project Site The following real property and all buildings and improvements, and fixtures or appurtenances, now or hereafter erected thereon: A-1 VAADH - A(736/I - k137327 vl ~ Msatt Mire - ProjectAgreemenv2.doc Page 9 EXHIBIT B Form of Promissory Note A-1 1\\DE - 86736/1 - # 137327 v t BYLAWS OF TIMBER RIDGE AFFORDABLE HOUSING CORPORATION (Adopted July 7, 2003) ~ Matt Mire -Bylaws-V2.doc TABLE OF CONTENTS - -- --- , -- --- Page 2 ", Pace ARTICLE I OFFICES 1 Section 1.1 Business Offices. 1 Section 1.2 Registered Office. 1 ARTICLE Q MEMBERS 1 Section 2.1 No Members. 1 I ARTICLE III BOARD OF DIRECTORS i 1 Section 3.1 General Powers. 1 Section 3.2 Number, Election, Tenure and Qualifications. 1 Section 3.3 Vacancies 1 Section 3.4 Regular Meetings. 2 Section 3.5 Special Meetings. 2 Section 3.6 Notice. 2 Section 3.7 Presumption of Assent. 2 ' Section 3.8 Quorum and Voting. 2 Section 3.9 Compensation. 3 Section 3.10 Executive and Other Committees. 3 Section 3.11 Meetings by Telephone. i 3 Section 3.12 [Action Without a Meeting. 3 ARTICLE IV OFFICERS AND AGENTS 3 Section 4.1 Number and Qualifications. 3 Section 4.2 Election and Term of Office. 3 Section 4.3 Compensation. 4 ~~ Section 4.4 Removal 4 Section 4.5 Vacancies. 4 Section 4.6 Authority and Duties of Officers. 4 ' Section 4.7 Surety Bonds. 5 ARTICLE V INDEMNIFICATION g Section 5.1 Definitions. S ~I Section 5.2 Right to Indemnification. 6 Section 5.3 Prior Authorization Required. I 7 Section 5.4 Success on Merits or Otherwise. 7 I Section 5.5 Advancement of Expenses. 7 Section 5.6 Payment Procedures. 8 i Section 5.7 Insurance. g Section 5.8 Right to Impose Conditions to Indemnification. 8 Section 5.9 Other Rights and Remedies. 9 Section 5.10 Applicability; Effect. 9 ', Section 5.11 Indemnification of Agents. 9 ', Section 5.12 Savings Clause; Limitations. 9 ARTICLE VI MISCELLANEOUS 9 Section 6.1 Account Books, Minutes, Etc. 9 2 -- -- - - - - tiiatt Mire Bylaws VZ.doc Page 3 Section 6.2 Fiscal Year. 10 Section 6.3 Conveyances and Encumbrances. 10 ', Section 6.4 Designated Contributions. 10 Section 6.5 Conflicting Interest Transactions. 10 Section 6.6 Non-Liability For Debts. 1 I Section 6.7 [References to Internal Revenue Code. I 1 Section 6.8 Amendments. 1 l Section 6.9 Severability. 11 Matt Mire -Bylaws-V2.doc Page 4 BYLAWS OF timber RIDGE AFFORDABLE HOUSING CORPORATION ARTICLE I OFFICES Section 1.1 Business Offices. The principal office of the corporation shall be located within the Town of Vail, Colorado. The corporation may have such other offices, either within or outside Colorado, as the board of ~: directors may designate or as the affairs of the corporation may require from time to time. 5 Section 1.2 Registered Office. The registered office of the corporation required by the laws of the State of Colorado governing nonprofit corporations to be maintained in Colorado may be, but need not be, the same as the principal office if in Colorado, and the address of the registered office may be changed from time to time by the board of directors or by the officers of the corporation. ARTICLE II MEMBERS Section 2.1 No Members. The corporation shall have no members. ARTICLE III BOARD OF DIRECTORS Section 3.1 General Powers. The business and affairs of the corporation shall be managed by its board of directors, except as otherwise provided in the laws of the State of Colorado, the articles of incorporation or these bylaws. Section 3.2 Number. Election. Tenure and Qualifications. The board of directors of the corporation shall consist of the members of the Town Council of the Town of Vail, Colorado (the "Town Council"), and each members term of office shall be coterminous with his or her term of office as a council member. 4 _._ - i _Matt Mire Bylaws-V2.doc Page 5 Section 3.3 Section 3.4 Re~?ular Meetings. A regular annual meeting of the board of directors shall be held during the month of November at the time and place determined by the board, for the purpose of electing officers and for the transaction of such other business as may come before the meeting. The board of directors may provide by resolution the time and place for the holding of additional regular meetings. Section 3.5 Special Meetings. Special meetings of the board of directors may be called by or at the request of the president or any two directors. The person or persons authorized to call special meetings of the board of directors may fix any place as the place for holding any special meeting of the board called by them. Section 3.6 Notice. Notice of each meeting of the board of directors stating the place, day and hour of the meeting shall be given to each director at the director's business address at least five days prior thereto by the mailing of written notice by first class, certified or registered mail, or at least two days prior thereto by personal delivery of written notice or by telephonic, telegraphic, telex or facsimile notice (and the method of notice need not be the same as to each director). If mailed, such notice shall. be deemed to be given when deposited in the United States mail, with postage thereon prepaid. If telegraphed, such notice shall. be deemed to be given when the telegram is delivered to the telegraph company. If transmitted by telex or facsimile, such notice shall be deemed to be given when the transmission, is completed. Any director may waive notice of any meeting before, at or after such meeting. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any meeting of the board of directors need be specified in the notice or waiver of notice of such meeting unless otherwise required by statute. Section 3.7 Presumption of Assent. A director of the corporation who is present at a meeting of the board of directors at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless such director's dissent shall be entered in the minutes of the meeting or unless the director shall file a written dissent. to such action. with the person acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the secretary of the corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action. Section 3.8 Quorum and Voting. A majority of the directors shall constitute a quorum for the transaction of business at any Matt Mire -Bylaws-V2.doc Page 6 meeting of the board of directors, and the vote of a majority of the directors present in person at a meeting at which a quorum is present shall be the act of the board of directors. If less than a quorum is present at a meeting, a majority of the directors present may adjourn the meeting from time to time without further notice other than an announcement at the meeting, until a quorum shall be present. No directors may vote or act by proxy at any meeting of directors. Section 3.9 Compensation. Directors shall not receive compensation for their services as such, although the reasonable expenses of directors of attendance at board meetings may be paid or reimbursed by the corporation. Directors shall not be disqualified to receive reasonable compensation for services rendered to or for the benefit of the corporation in any other capacity. Section 3.10 Executive and Other Committees. By one or more resolutions adopted by a majority of the directors then in office, the board of directors may designate from among its members an executive committee and one or more other committees, each of which, to the extent provided in the resolution establishing such committee, shall have and may exercise all of the authority of the board of directors, except as prohibited by statute. The delegation of authority to any committee shall not operate to relieve the board of directors or any member of the board from any responsibility imposed by law. Rules governing procedures for meetings of any committee of the board shall be as established by the board of directors, or in the absence thereof, by the committee itself. Section 3.11 Meetings b Telephone. Members of the board of directors or any committee thereof may participate in a meeting of the board or committee by means of conference telephone or similar communications equipment by which all persons participating in the meeting can hear each other at the same time. Such participation shall constitute presence in person at the meeting. Section 3.12 Action Without a Meeting. Any action required or permitted to be taken at a meeting of the directors or any committee thereof may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the directors or committee members entitled to vote with respect to the subject matter thereof. Such consent (which may be signed in counterparts) shall have the same force and effect as a unanimous vote of the directors or committee members. ARTICLE IV OFFICERS AND AGENTS Section 4.1 Number and Qualifications. The elected officers of the corporation shall be a president, one or more vice-presidents, a secretary and a treasurer. The board of directors may also appoint such other officers, assistant -- - -- - - -- -- - - _.. _,___. _ _---_ _.~ - -_- __--_ T _, --- - - ------ ' Matt Mire -Bylaws-V2.doc Page 7 officers and agents, including an executive director, a controller, assistant secretaries and assistant treasurers, as it may consider necessary. One person may hold more than one office at a time, except that no person may simultaneously hold the offices of president and secretary. Officers need not be directors of the corporation. All officers must be at least eighteen years old. Section 4.2 Election anal Term of Office. The elected officers of the corporation shall be elected by the board of directors at each regular annual meeting. If the election of officers shall not be held at such meeting, such election shall be held as soon as convenient thereafter. Each officer shall hold office until the officer's successor shall have been duly elected and shall have qualified, or until the officer's earlier death, resignation or removal Section 4.3 Compensation. The compensation of the officers, if any, shall be as fixed from time to time by the board of directors, and no officer shall be prevented from receiving a salary by reason of the fact that such offcer is also a director of the corporation. Section 4.4 Removal. Any officer or agent may be removed by the board of directors whenever in its judgment the best interests of the corporation will be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Election or appointment of an officer or agent shall not in itself create contract rights. Section 4.5 Vacancies. Any officer may resign at any time, subject to any rights or obligations under any existing contracts between. the officer and the corporation, by giving written notice to the president or to the board of directors. An officer's resignation shall take effect at the time specified in such notice, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. A vacancy in any office, however occurring, may be filled by the board of directors for the unexpired portion of the term. Section 4.6 Authority and Duties of Officers. The officers of the corporation shall have the authority and shall exercise the powers and perform the duties specified below and as may be additionally specified by the president, the board of directors or these bylaws, except that in any event each officer shall exercise such powers and perform such duties as may be required by law. (a) President. The president shall, subject to the direction and supervision of the board of directors, (i) be the chief executive officer of the corporation and have general and active control of its affairs and business and general supervision of its officers, agents and employees; (ii) preside at all meetings of the board of directors; (iii) see that all orders and resolutions of the board of directors are carried into effect; and (iv) perform all other duties 7 (b) Vice-Presidents. The vice-president or vice-presidents shall assist the president and shall perform such duties as may be assigned to them by the president or by the board of directors. The vice-president (or if there is more than one, then the vice-president designated by the board of directors, or if there be no such designation, then the vice-presidents in order of their election) shall, at the request of the president, or in the president's absence or inability or refusal to act, perform the duties of the president and when so acting shall have all the powers of and be subject to all the restrictions of the president. (c) Secretarv. The secretary shall (i) keep the minutes of the proceedings of the board of directors and any committees of the board; (ii) see that all notices are duly given in accordance with the provisions of these bylaws or as required by law; (iii) be custodian of the corporate records and of the seal of the corporation; and (iv) in general, perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to the secretary by the president or by the board of directors. Assistant secretaries, if any, shall have the same duties and powers, subject to supervision by the secretary. (d) Treasurer. The treasurer shall (i) be the principal financial officer of the corporation and have the care and custody of al] its funds, securities, evidences of indebtedness and other personal property and deposit the same in accordance with the instructions of the board of directors; (ii) receive and give receipts and acquittances for moneys paid in on account of the corporation, and pay out of the funds on hand all bills, payrolls and other just debts of the corporation of whatever nature upon maturity; (iii) unless there is a controller, be the principal accounting officer of the corporation and as such prescribe and maintain the methods and systems of accounting to be followed, keep complete books and records of account, prepare and file all local, state and federal tax returns and related documents, prescribe and maintain an adequate system of internal audit, and prepare and furnish to the president and the board of directors statements of account showing the financial position of the corporation and the results of its operations; (iv) upon request of the board, make such reports to it as may be required at any time; and (v) perform all other duties incident to the office of treasurer and such other duties as from time to time may be assigned to the treasurer by the president or the board of directors. Assistant treasurers, if any, shall have the same powers and duties, subject to supervision by the treasurer. Section 4.7 Surety Bonds. The board of directors may require any officer or agent of the corporation to execute to the. corporation a bond in such sums and with such sureties as shall be satisfactory to the board, conditioned upon the faithful performance of such person's duties and or the restoration to the corporation of all books, papers, vouchers, money and other property of whatever kind in such person's possession or under such person's control belonging to the corporation. ARTICLE V _ _- ~ --- Matt Mire -Bylaws-V2.doc r _ -- - -- -. -- - -. - Page 9 INDEMNIFICATION Section 5. i Definitions. For purposes of this Article V, the following terms shall have the meanings set forth below: (a) "Corporation" means the corporation and, in addition to the resulting or surviving corporation, any domestic or foreign predecessor entity of the corporation in a merger, consolidation or other transaction in which the predecessor's existence ceased upon consummation of the transaction. (b) "Expenses" means the actual and reasonable expenses, including attorneys' fees, incurred by a party in connection with a proceeding. (c) "Liability" means the obligation to pay a judgment, settlement, penalty, fine (including an excise tax benefit .plan) or expense incurred with respect to a proceeding. (d) "Official capacity" when used with respect to a director of the corporation means the office of director in the corporation, and when used with respect to a person in a capacity other than as a director (even if such person is also a director) means the office in the corporation. held by the officer or the employment relationship undertaken by the employee on behalf of the corporation in the performance of his or her duties in his or her capacity as such officer or employee. "Official capacity" does not include service for any other foreign or domestic corporation or for any partnership, joint venture, trust, other enterprise or employee benefit plan when acting directly on behalf of such other corporation, partnership, joint venture, trust, enterprise or plan: as a director, officer, employee, fiduciary or agent thereof.. (e) "P~" means any person who was, is, or is threatened to be made, a named defendant or respondent in a proceeding by reason of the fact that such person is or was a director, officer or employee of the corporation, and any person who, while a director, officer or employee of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any other foreign or domestic corporation or of any partnership, joint venture, trust, other enterprise or employee benefit plan. A party shall be considered to be serving an employee benefit plan at the corporation's request if such party's duties to the corporation also impose duties on or otherwise involve services by such party to the plan or to participants in or beneficiaries of the plan. (f) "Proceeding" means any threatened, pending or completed action, suit or proceeding, or any appeal therein, whether. civil, criminal, administrative, arbitrative or investigative (including an action by the corporation) and whether formal or informal. Section 5.2 Right to Indemnification. (a) Standards of Conduct. Except as provided in Section 5.2(d) below, the corporation shall indemnify any party to a 9 Matt Mire -Bylaws-V2.doc Page 10 proceeding against liability incurred in or as a result of the proceeding if (i) such party conducted himself or herself in good faith, (ii) such party reasonably believed (A) in the case of a director acting in his or her official capacity, that his or her conduct was in the corporation's best interests, or (B) in all other cases, that such party's conduct was at least not opposed to the corporation's best interests, and (iii) in the case of any criminal proceeding, such party had no reasonable cause to believe his or her conduct was unlawful. For purposes of determining the applicable standard of conduct under this Section 5.2, any party acting in his or her official capacity who is also a director of the corporation shall be held to the standard of conduct set forth in Section 5.2(a)(ii)(A), even if such party issued solely in a capacity other than as such director. (b) Employee Benefit Plans. A party's conduct with respect to an employee benefit plan for a purpose such party reasonably believed to be in the interests of the participants in or .beneficiaries of the plan is conduct that satisfies the requirements of Section 5.2(a)(ii)(B). A party's conduct with respect to an employee benefit plan for a purpose that such party did not reasonably believe to be in the interests of the participants in or beneficiaries of the plan shall be deemed not to satisfy the requirements of Section 5.2(a)(i). (c) Settlement. The termination of any proceeding by judgment, order, settlement or conviction, or upon a plea of polo contendere or its equivalent, is not of itself determinative that the party did not meet the applicable standard of conduct set forth in Section 5.2(a). (d) Indemnification Prohibited. Except as hereinafter set forth in this Section 5.2(d), the corporation may not indemnify a party under this Section 5.2 either (i) in connection with a proceeding by the corporation in which the party is or has been adjudged liable for gross negligence or willful misconduct in the performance of the party's duty to the corporation, or (ii) in connection with any proceeding charging improper personal benefit to the party, whether or not involving action in the party's official capacity, in which the party was adjudged liable on the basis that personal benefit was improperly received by the party (even if the corporation was not thereby damaged). Notwithstanding the foregoing, the corporation shall indemnify any such party if and to the extent required by the court conducting the proceeding, or any other court of competent jurisdiction to which the party has applied, if it is determined by such court, upon application by the party, that despite the adjudication of liability in the circumstances in clauses (i) and (ii) of this Section 5.2(d) or whether or not the party met the applicable standard of conduct set. forth in Section 5.2(a), and in view of all relevant circumstances, the party is fairly and reasonably entitled to indemnification for such expenses as the court deems proper in accordance with the Colorado Nonprofit Corporation Code. (e) Claims by Corporation. Indemnification permitted under this € Section 5.2 in connection with. a proceeding by the corporation shall be limited to expenses incurred in connection with the proceeding. (f) Combined Proceedings. If any claim made by the corporation against a party is joined with any other claim against such party in a single proceeding, the claim by the corporation (and all expenses related thereto) shall nevertheless be deemed the subject of a separate and distinct proceeding for purposes of this Article. Any indemnification under Section 5.2 (unless ordered by a court) shall be made by the corporation only if authorized in the specific case after a determination has been made that the party is eligible for indemnification in the circumstances because the party has met the applicable standard of conduct set forth in Section 5.2(a) and after an evaluation has been made as to the reasonableness of the expenses. Any such determination, evaluation and authorization shall be made by the board of directors by a majority vote of a quorum of such board, which quorum shall consist of directors not parties to the subject proceeding, or by such other person or body as permitted by law. Section 5.4 Success on Merits or Otherwise. Notwithstanding any other provision of this Article V, the corporation shall indemnify a party to the extent such party has been successful, on the merits or otherwise, including without limitation, dismissal without prejudice or settlement without admission of liability, in defense of any proceeding to which the party was a party against expenses incurred by such party in connection therewith. Section 5.5 Advancement of Expenses. The corporation shall pay for or reimburse the expenses, or a portion thereof, incurred by a party in advance of the final disposition of the proceeding if: (a) the party furnishes the corporation a written affirmation of such party's good-faith belief that he or she has met the standard of conduct described in Section 5.2(a)(i); (b) the party furnishes the corporation a written undertaking, executed personally or on behalf of such party, to repay the advance if it is ultimately determined that the party did not meet such standard of conduct; and (c) authorization of payment and a determination that the facts then known to those making the determination would not preclude indemnification under this Article have been made in the manner provided in Section 5.3. The undertaking required by clause (b) must be an unlimited general obligation of the party, but need not be secured and may be accepted without reference to financial ability to make repayment. Section 5.6 Payment Procedures. The corporation shall promptly act upon any request for indemnification, which request must be in writing and accompanied by the order of court or other reasonably satisfactory evidence documenting disposition of the proceeding in the case of indemnification under Section 5.4 and by the written affirmation and undertaking to repay as required by Section 5.5 in the case of indemnification under such Section. The right to indemnification and advances granted by this Article shall be enforceable in any court of competent jurisdiction if the corporation denies the claim, in whole or in part, or if no disposition of such claim is made within ninety days after written request for indemnification is made. A party's expenses incun:ed in connection with successfully establishing such party's right to indemnification, in whole or in part, in any such proceeding shall also be paid by the corporation. Section 5.7 Insurance. 11 Matt Mire -Bylaws-V2.doc Page 12 By action of the board of directors, notwithstanding any interest of the directors in such action, the corporation may purchase and maintain insurance in such amounts as the board of directors deems appropriate to protect itself and any person who is or was a director, officer, employee, fiduciary or agent of the corporation, or who, while a director, officer, employee, fiduciary or agent of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any other foreign or domestic corporation or of any partnership, joint venture, trust, other enterprise or employee benefit plan against any liability asserted against or incurred by such person in any such capacity or arising out of such person's status as such, whether or not the corporation would have the power to indemnify such person against such liability under applicable provisions of law or this Article. Any such insurance may be .procured from any insurance company designated by the board of directors, whether such insurance company is formed under the laws of Colorado or any other jurisdiction, including any insurance company in which the corporation has an equity or any other interest, through stock ownership or otherwise. The corporation may create a trust fund, grant a security interest or use other means (including, without limitation, a letter of credit) to ensure the payment of such sums as may become necessary to effect indemnification asprovided herein. Section 5.8 Right to Impose Conditions to Indemnification. The corporation shall have the right to impose, as conditions to any indemnification provided or permitted in this Article, such reasonable requirements and conditions as may appear appropriate to the board of directors in each specific case and circumstances, including but not limited to any one or more of the following: (a) that any counsel representing the party to be indemnified in connection with the defense or settlement of any proceeding shall be counsel mutually agreeable. to the party and to the corporation; (b) that the corporation shall have the right, at its option, to assume and control the defense or settlement of any claim or proceeding made, initiated or threatened against the party to be indemnified; and (c) that the corporation shall be subrogated, to the extent of any payments made by way of indemnification, to all of the indemnified party's right of recovery, and that the party to be indemnified shall execute all writings and do everything necessary to assure such rights of subrogation to the corporation. Section 5.9 Other Rights and Remedies. Except as limited by law, the indemnification provided by this Article shall be in addition to any other rights which a party may have or hereafter acquire under any law, provision of the articles of incorporation, any other or further provision of these bylaws, vote of the board of directors, agreement, or otherwise. Section 5.10 Applicability; Effect. The indemnification provided in this Article shall be applicable to acts or omissions that occurred prior to the adoption of this Article, shall continue as to any party entitled to indemnification under this Article who has ceased to be a director, officer or employee of the corporation or, at the request of the corporation, was serving as and has since ceased to be a director, officer, partner, trustee, employee, fiduciary or agent of any other domestic or foreign corporation, or of any partnership, joint venture, trust, other enterprise or employee benefit plan, 12 _. Matt Mire -Bylaws-V2.doc Page 13 ', and shall inure to the benefit of the estate and personal representatives of each such person. The repeal or amendment of this Article or of any Section or provision hereof that would have the ' effect of limiting, qualifying or restricting any of the powers or rights of indemnification provided or permitted in this Article shall not, solely by reason of such repeal or amendment, ', eliminate, restrict or otherwise affect the right or power of the corporation to indemnify any person; or affect any right of indemnifcation of such .person, with respect to any acts or omissions that occurred prior to such repeal or amendment. All rights to indemnification under this Article shall be deemed to be provided by a contract between the corporation and each party covered hereby. Section 5.11. Indemnificatian of A ents. The corporation shall have the right, but shall not be obligated, to indemnify any agent of the corporation not otherwise covered by this Article to the fullest extent permissible by the laws of Colorado. Unless otherwise provided in any separate indemnification arrangement, any such indemnification shall be made only as authorized in the specific case in the manner provided in Section 5.3. Section 5.12 Savings Clause: Limitations. If this Article or any Section or provision hereof shall be invalidated by any court on any ground, then the corporation shall nevertheless indemnify each party otherwise entitled to indemnification hereunder to the fullest extent permitted by law or any applicable provision of this Article that shall not have been invalidated. MISCELLANEOUS Section 5.1 Account Books. Minutes. Etc. The corporation shall keep correct and complete books and records of account and shall keep ~ minutes of the proceedings of its board of directors and committees. All books and records of the corporation may be inspected by any director, or that director's authorized agent or attorney, for any proper purpose at any reasonable time. I Section 5.2 Fiscal Year. I The fiscal year of the corporation shall be as established by the board of directors. Section 5.3 Convevances and Encumbrances. Property of the corporation may be assigned, conveyed or encumbered by such officers of the corporation as may be authorized to do so by the board of directors, and such authorized persons '. shall have power to execute and deliver any and all instruments of assignment, conveyance and '„ encumbrance; however, the sale, exchange, lease or other disposition of all or substantially all of ', the property and assets of the corporation shall be authorized only in the manner prescribed by ', applicable statute. 13 `Matt Mire -Bylaws-V2.doc Page 14 Section 5.4 Designated Contributions. The corporation may accept any designated contribution, grant, bequest or devise consistent with its general tax-exempt purposes, as set forth in the articles of incorporation. As so limited, donor-designated contributions will be accepted for special funds, purposes or uses, and such designations generally will be honored. However, the corporation shall reserve all right, title and interest in and to and control of such contributions, as well as full discretion as to the ultimate expenditure or distribution thereof in connection with any such special fund, purpose or use. Further, the corporation shall acquire and retain sufficient control .over all donated funds (including designated contributions) to assure that such funds will be used to carry out the corporation's tax-exempt purposes. Section 5.5 Conflicting Interest Transactions. (a) As used in this section, "Conflicting Interest Transaction" means a contract, transaction, or other financial relationship between the corporation and a director of the corporation, or between the corporation and a party related to a director or between the corporation and an entity in which a director of the corporation is a director or officer or has a financial interest. (b) No loans shall be made by the corporation to its directors or officers. Any director or officer who assents to or participates in the making of any such loan shall be liable to the corporation for the amount of such loan until the repayment thereof. (c) No Conflicting Interest Transaction shall be void or voidable or be 'L enjoined, set aside, or give rise to an award of damages or other sanctions in a proceeding in the right of the corporation, solely because the Conflicting Interest Transaction involves a director of the corporation or a party related to a director or an entity in which a director of the corporation is ' a director or officer or has a financial interest or solely because the director is present at or participates in the meeting of the corporation's board of directors or of the committee of the board of directors that authorizes, approves, or ratifies the Conflicting Interest Transaction or 4i solely because the director's vote is counted for such purpose if: (i) The material facts as to the director's relationship or interest and as to the Conflicting Interest Transaction are disclosed or are known to the board of directors or the committee, and the board of directors or committee in good faith authorizes, approves, or ratifies the Conflicting Interest Transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum; or (ii) The Conflicting Interest Transaction is fair as to the corporation. (d) Common or interested directors may be counted in determining the presence of a quorum at a meeting of the board of directors or of a committee which authorizes, approves, or ratifies the Conflicting Interest Transaction. (e) For purposes of this section, a party related to a director shall mean 14 Matt Mire -Bylaws-V2.doc Page 15 '; a spouse, a descendent, an ancestor, a sibling, the spouse or descendent of a sibling, an estate or trust in which the director or a party related to a director has a beneficial interest, or an entity in which a party related to a director is a director, officer, or has a financial interest. (f) Notwithstanding any other provision of this Article VI, no contract, transaction or financial relationship between the corporation and the employees of the Town of Vail, Colorado shall constitute a Conflicting Interest Transaction. Section 5.6 Non-Liability For Debts. The private property of the directors and officers shall be exempt from execution or other liability for any debts of the Corporation and no director shall be liable or responsible for the debts or liabilities of the Corporation. Section 5.7 Amendments. ' The power to alter, amend or repeal these bylaws and adopt new bylaws shall be vested in the board of directors. Section 5.8 Severability. The invalidity of any provision of these bylaws shall not affect the other provisions hereof, and in such event these bylaws shall be construed in all respects as if such invalid provision were omitted. . The undersigned hereby certifies that the foregoing Bylaws of Timber Ridge ~ Affordable Housing Corporation as adopted July 7, 2003, are in full force and effect as of July 7, 2003. [SEAL] Secretary 15 L Matt Mire -Bylaws-V2.doc Page 1 b DOCUMENT LOCATOR PAGE I Vail/Timber Ridge/2003 Bonds H:\CLIENT\PublicFinance\005605 Vail\005605015-Timber-Ridge\Bylaws-Vl.doc Created on: 4/28/2003 1:56 PM Last Saved on: 4/29/2003 4:08 PM ~! Printed on: 5/27/2003 6:42 PM In order to locate this document quickly, please keep this page with the attached document. Thank you. WARNING: You may need to delete the tag footer from this document. Please report any problems with this macro to the User Support Specialist, x8011. 16 +1%latt Mire -Article V2.doc Page 1 - - - - - .- .r DRAFT DATED June 25, 2003 ARTICLES OF INCORPORATION OF '; TIMBER RIDGE AFFORDABLE HOUSING CORPORATION The undersigned adult natural person, acting as incorporator, hereby establishes a nonprofit corporation pursuant to the laws of the State of Colorado governing nonprofit corporations and adopts the following articles of incorporation: 1: Name. The name of the corporation is Timber Ridge Affordable Housing Corporation. 2: Principal Office. 'fhe address of the initial principal office of the corporation shall be 75 South Frontage Road West, Vail, Colorado 81657, and may be changed as deemed appropriate by the Board of Directors of the corporation. 3: Duration. The corporation shall have perpetual existence. 4: (a) (a) Purposes. The corporation is organized and shall be operated exclusively on behalf of and for the benefit and in furtherance of the purposes of the Town of Vail, Colorado, and the inhabitants thereof. All moneys realized by the corporation shall be used exclusively for the acquisition, operation, maintenance and development of j property used to provide decent, safe and sanitary housing at affordable rental rates to individuals or families of employees within the Town or within Eagle County, including payment of obligations of the corporation in connection therewith. Any such property shall be located within the Town of Vail, Colorado or have a substantial connection therewith. !, (b) Powers. In furtherance of the foregoing purposes and objectives ', and subject to the restrictions set forth in section (c) of this article, the corporation shall have and may exercise all of the powers now or hereafter conferred upon nonprofit corporations organized under the laws of Colorado and may do everything necessary or convenient for the accomplishment of any of the corporate purposes, either alone or in connection with other organizations, entities or individuals, and either as principal or agent, subject to such limitations ', as are or may be prescribed by law. (c) Restrictions on Powers. Matt Mire -Article-V2.doc page 2 (1) No part of the net earnings of the corporation shall inure to the benefit of or be distributable to any director or officer of the corporation, or any other private person (except that reasonable compensation may be paid for services rendered to or for the benefit of the corporation affecting one or more of its purposes), and no director or officer of the corporation, or any other individual, shall be entitled to share in any distribution of any of the corporate assets on dissolution of the corporation or otherwise. (2) No substantial part of the activities of the corporation shall consist of carrying on propaganda or otherwise attempting to influence legislation. The corporation shall not participate or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. (3) All property of the corporation shall be owned for the benefit of the Town of Vail, Colorado. Upon dissolution of the corporation, all. property of the corporation remaining after payment of or provision for all of its liabilities shall be paid over or transferred to the Town of Vail, Colorado. This limitation shall not restrict the ability of the corporation to pledge its property to secure the payment of its obligations. (4) The corporation at all times shall be one not organized for profit. 5: Registered Office and Agent. The address of the initial registered office of the corporation is 75 South Frontage Road West, Vail, Colorado 81657. The name of its initial. registered agent at such office is Matt Mire, Esq. The consent of the initial registered agent to such appointment is being filed with the Secretary of State in connection with these articles of incorporation. 6: Members. The corporation shall have no members, voting or nonvoting. 7: (a) (a) Board of Directors. The management of the affairs of the corporation shall be vested in a Board of Directors, except as otherwise provided in the laws of the State of Colorado governing nonprofit corporations, these articles of incorporation or the bylaws of the corporation. The number of directors, their classifications, if any, their terms of office and the manner of their election or appointment shall be determined according to the bylaws of the corporation from time to time in force. (b) Liability of Directors. The personal liability of a director to the corporation for monetary damages for any breach of fiduciary duty as a director is limited to the fullest extent permitted by the laws of the State of Colorado, as the same exist or may hereafter be amended, and as further provided in the bylaws of the corporation. Any repeal or modification of this Article SEVENTH (b) shall be prospective only and shall not adversely ~ IVlatt Mire Article-V2.doc Page 3 -- -- -. ~ . _. _ ._ - - - _ ~ _ ---- _ ~__ _LL_ --~- - ----- --- - affect any right or protection of a director of the corporation under this Article SEVENTH (b), as in effect immediately prior to such repeal or modification, with respect to any liability that would have accrued, but for this Article SEVENTH (b), prior to such repeal or modification. (c) Initial Board. Five directors shall constitute the initial Board of Directors. Their names and addresses are as follows: Name Address Dick Cleveland Diana Donovan. Bill Jewitt Ludwig Kurz Gregg Moffet Chuck Ogilby Rod Slifer EIGHTH: Bylaws. The initial bylaws of the corporation shall be as adopted by the Board of Directors. The Board of Directors shall have power to alter, amend or repeal the bylaws from time to time in force and adopt new bylaws. The bylaws of the corporation may contain any provisions for the regulation of management of the affairs of the corporation that are not inconsistent with the law or these articles of incorporation, as these articles may from time to time be amended. However, no bylaw at any time in effect, and no amendment to these articles, shall have the effect of proprietary interest in the corporation's property or assets, whether during :Matt Mire -Article-V2.doc - _ - ..Page 4 the term of the corporation's existence or as an incident to its dissolution. NINTH: Incorporator. The name and address of the incorporator is: Dated: Matt Mire, Esq., Incorporator Matt Mire -Article-V2.doc Page 5 .~ CONSENT OF REGISTERED AGENT The undersigned hereby consents to his appointment as initial registered agent for Timber Ridge Affordable Housing Corporation. Dated: Registered Agent ACKNOWLEDGMENT STATE OF COLORADO ) ss. COUNTY OF EAGLE ) Acknowledged before me this _ day of , 2003 by as incorporator and registered agent. Witness my hand and official seal. My commission expires (SEAL) Notary Public Matt Mire -Article-V2.doc Page 6 L. DOCUMENT LOCATOR PAGE Vail/Timber Ridge/2003 Bonds H:\CLIENT\PublicFinance\005605 Vail\005605015-Timber-RidgeWrticle-V l .doc Created on: 4/28/2003 12:00 PM Last Saved on: 5/27/2003 6:37 PM Printed on: 5/27/2003 6:43 PM ~: In order to locate this document quickly, please keep this page with the attached document. Thank you. WARNING: You may need to delete the tag footer from this document. Please report any problems with this macro to the User Support Specialist, x8011. Matt Mire - Note.doc Page 1 '-- ---- _ __ __ __ _ _. _. DRAFT DATED JUNE 25, 2003 PROMISSORY NOTE July 9, 2003 Timber Ridge Affordable Housing Corporation, (the "Corporation"), for value received, promises to pay to Town of Vail, Colorado (the "Town") the principal sum of ONE MILLION DOLLARS ($1,000,000) ,plus interest on the unpaid balance from the date hereof of such sum or sums then owing from time to time at one and one-half percent (1.50%) per annum due December l 5, 2032. Amounts payable hereunder shall be payable solely from revenues of the Corporation's Timber Ridge Apartments, including any additions thereto (the "Project"), and from no other revenues or income of the Corporation. The obligations hereunder shall be subordinate to those obligations of the Corporation to the owners of the Timber Ridge Affordable Housing Corporation, Adjustable Rate Housing Facilities Revenue Bonds Series 2003A and the Timber Ridge Affordable Housing Corporation, Subordinate Housing Facilities Revenue Bonds Series 2003B as the same shall be outstanding from time to time. This Note has been executed and delivered in consideration of the Town's loan to the Corporation to finance a portion of the cost of acquisition of the Project by the Corporation. This Note is intended to be a cash flow note, payable only to the extent the Corporation has determined that excess net revenues of the Project, after provision for any necessary operating or is capital reserves, have been accumulated semi-annually on the business day next succeeding the payment of the principal, if any, and interest on the Series 2003B Bonds as the same come due. Unpaid interest hereon shall not compound but shall be payable as accumulated cash flow becomes available. All receipts upon this note shall first be applied to interest then due and owing and then to the payment of principal hereof. This Note shall be pre-payable in whole or in part from time to time by the Corporation. All payments shall be payable in lawful money of the United States of America, in immediately available funds, and shall be made to the Town at its offices for the account of the Town. The obligation of the Corporation to make the payments required hereunder shall be absolute and unconditional and the Corporation shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances whatsoever including, without ~, Matt Mire - Note.doc Page 2 limitation, any defense, set-off, recoupment or counterclaim which the Corporation may have or assert against the Town or any other person. This Note shall be governed by and construed in accordance with the laws of the State of Colorado. IN WITNESS WHEREOF, the Corporation has signed this Note as ofthe date first above written. TIMBER RIDGE AFFORDABLE HOUSING CORPORATION By H:\CLIEN11PublicFinance\005605 V< Ridge\Note.doc Chairman ~ r r Rocky Mountain Group PO Box 1592 Carbondale, CO 81623 Phone (970) 963-8646 Fax (970) 963-9163 THE MOST ASKED QUESTIONS ABOUT FISCAL IMPACT STUDIES WHAT IS A FISCAL IMPACT STUDY? A fisca/ impactstudy is a set of statistical data and information based on new development in a jurisdiction that legally justifies the extraction of certain fees from new development by the local governmental entity. Our study is based on the legally accepted basis of a "rational nexus" test. The fisca/ impact study, via the rational nexus test, definitively formulates the amount of impact fees to by paid. These fees are non-discriminatory, and are applicable to residential, commercial, and industrial development. HOW CAN A FISCAL IMPACT STUDY.HELP US? A fisca/ impact study is the one toot that identifies your current economic/financial situation, defines future financial needs and gives suggested paths to satisfy those needs. A proper fisca/ imaactstudyshows that you have analyzed and exhausted all possible avenues to solving your economic shortcomings. It provides you with the background for successful bond issues, capital improvement plans (CIP), mill levy increases, grant money, "de-brucing" and impact fees. ARE IMPACT FEES LEGAL IN COLORADO? The Colorado legislature, to date, has not specifically authorized or banned impact fees for fire districts. When these fees are promulgated on the nationwide legally approved "national nexus" basis, fiscal impact fees have withstood any attack on their validity in a court of taw. HOW DO WE COLLECT IMPACT FEES? In most cases the fees are mandated or authorized through the particular county and its Commissioners by way of a resolution in its subdivision regulations. The resolution is supported by the fiscal impact study. Wtth the county backing the impact fee, the fees can be collected at the county level or by the individual district, depending on circumstances. While this process is recommended, some districts have devised their own method of enforcing and collecting impact fees. WHAT CAN IMPACT FEES BE USED FOR? Impact fees may only be used for future capital expenditures, and in some instances, to aid in reducing or retiring a bond. These future capital expenditures must be needed and justified for proposed future development and allocated proportionately to that growth. IMPACT FEES ARE NQ A TAX! Impact fees are none-time fee paid by the developer or builder. They are determined by applying a rational nexus equation to new or projected growth for a specific district or area, and the fair share of the cosh to provide capital equipment tv service the projected growth. They are closer to a "tap fee" than a tax that is based on size of structure, value, etc. WHAT IS THE OB]ECTIVE OF IMPACT FEES? The objective is to insure adequate capital facilities, not to raise money! HOW DO IMPACT FEES HELP REDUCE FIRE INSURANCE COSTS? Impact fees provide facilities/stations in areas not readily served by existing rescue apparatus, thereby reducing ISO ratings, which. result in reduced insurance rates for the areas involved. ••••• fiscal impact ~ ~ ~ ro rams ~ p g , gg x the taxpayers of Colorado are no ~ ~ Z longer willing to shoulder much ~, ~ of the burden of accommodating ~ '~ ~ new development. they have learned that sometimes new development does not result in improved quality of life and instead generates pollution, congestion, and lower quality of life. development impact fees aim to require new growth to account for its fiscal impact on the community by accounting for its proportionate share of the cost of new or expanded capital facilities. rocky mountain group is a leader in generating fiscal. impact studies for Colorado districts. .~ •••f• • • • • • ROCKY MOUNTAIN GROUP Post Office Box 1592 Carbondale, Colorado 81623 •••~• G~` ~~,p 9n a `~~a6o~ telephone ... 970-963-8646 facsimile ... 970-963-9163 e-mail: smiths@sopris.net • • • • • ••••• GROWTH PAYS ITS OWN WAY ~~~ DO Similar to Florida 20 years ago, growth in Colorado is exploding! The need for expanding infrastructure, schools, police and fire protection and other governmental support activities is putting an undue tax burden on the present citizens of Colorado. In an effort to curtail this tax burden, Rocky Mountain Group has initiated a successful fiscal impact study program to aid various governmental districts such as fire districts in collecting their fair share of impact fees from new growth. These fees are collected from new residential, industrial, and commercial growth, usually at the time a building permit is issued. Subsequently, the impact fee monies are used by the responsible district for such projects as capital expenditures and bond retirement. .IMPACT FEES CAN BE COLLECTED Some of the .legal profession question the legality of imposing fiscal impact fees on new growth, collecting these fees and then spending the fees collected for capital expenditures or other legal outlays. A valid point is often brought up in that. the Colorado legislature, to date, has not authorized impact fees on new growth. True. However, neither has the Colorado legislature banned such fees! If promulgated on the nationwide legally approved rational nexus basis, fiscal impact fees will and have withstood any attack on its validity in a court of law. Rocky Mountain Group utilizes the rational nexus basis for its fiscal impact studies. Under the auspices of impact programs generated by Rocky Mountain Group, impact fees are currently being collected in Colorado. ,, ••••• r •. •.• ~~~~~ f~~~Ti~7f'l~d1~T (plft~~Jl~ With proven past experience in fiscal impact fee studies in Florida and now Colorado, our professionals submit reports which are finite and complete from beginning to end, even including recommended Impact Fees Ordinances for approval by the local governmental entity. Additional services provided by the Rocky Mountain Group include solving revenue problems, planning issues, master and capital improvement plans (CIP), obtaining mill levy increases, bond issues and grant money, lowering ISO ratings and "de-Brucing". ~~~•~~•• MEMORANDUM June 30, 2003 To: Vail Town Council Pam Brandmeyer Judy Camp From: Sally Lorton Re: May Sales Tax On the reverse side please find the latest sales tax worksheet. I estimate I'll collect another $17,000.00 in May sales tax to bring May collections to $414,040.00. If so, we will be up 3.47% or $13,884.00 from budget and down .OS% or $208.00 from April 2002. A total of $1,900,614.62 has been collected for the conference center. onth 992 993 994 995 996 997 Town of Vail Sales Tax Worksheet 6/30/03 1998 1999 2000 001 002 udget 003 Co11ec0ont o Change Budget from Valance 2002 Change from Budget January 1,709,654 1,855,364 1,805,707 1,894,597 1,935,782 2,052,569 2,115,359 2,066,459 2,034,529 2,210,547 2,073,481 2,002,943 1,996,023 (6,920) -3.74% -0.35% February 1,780,568 1,828,766 1,814,495 1,816,107 1,993,389 2,089,673 2,153,121 2,021,486 2,223,670 2,366,321 2,281,833 2,204,207 2,110,019 (94,188) -7.53% -4.27% March 1,977,995 1,988,090 2,250,656 2,139,298 2,240,865 2,580,992 2,368,077 2,415,202 2,545,573 2,568,871 2,699,664 2,607,824 2,363,728 (244,096) -12.44% -9.36% April 691,163 864,303 794,668 791,092 966,993 874,427 1,107,334 952,843 926,771 1,043,431 870,875 841,249 854,161 12,912 -1.92% 1.53% May 268,000 257,248 287,315 324,681 318,920 329,783 382,718 370,864 388,121 448,234 414,248 400,156 397,040 (3,116) -4.15% -0.78% Total 6,427,380 6,793,771 6,952,841 6,965,775 7,455,949 7,927,444 8,126,609 7,826.854 8,18,664 8,637,404 8,340,101 8,056,379 7,720,971 -335,408 -7 ~32°~ _4 i6~b June 468,598 475,161 548,820 590,685 594,907 630,366 633,400 692,811 721,774 751,439 657,707 . 635,332 July ~ 742,750 811,538 892,830 893,483 963,717 1,043,637 1,107,882 1,130,883 1,235,470 1,157,867 1,044,966 1,009,411 August 767,257 825,954 891,566 867,125 990,650 1,073,430 1,183,926 1,050,004 1,038,516 1,124,275 1,084,318 1,047,424 September 485,954. 560,535 725,205 645,902 630,453 637,831 735,608 806,600 817,313 747,766 713,574 689,292 October 367,578 400,525 408,405 461,791 413,573 472,836 515,531 536,204 547,201 486,570 484,425 467,825 November 497,907 553,681 594,491 611,147 601,208 707,166 656,596 582,260 691,445 571,783 642,293 619,046 December 1,846,223 1,974,553 1,992,855 1,994,540 2,068,851 2,254,709 2,070,834 1,883,805 2,062,205 1,933,940 2,139,417 2,055,291 Total 11,603,647 12,395, 718 13,007,013 13,030,448 13,719,308 14,747,419 15,030,386 14,509,421 15,232,588 15,411,044 15,106,801 14,580,000