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HomeMy WebLinkAbout2003-08-05 Support Documentation Town Council Evening SessionAGENDA EVENING MEETING 6 P.M. TUESDAY, AUG. 5, 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. Helen Fritch ITEMlTOPIC: 2003 Vail Great Commercial Gardens Contest Winners (5 min.) 3. ITEM/TOPIC: Consent Agenda re: July 1 and July 15 Meeting Minutes (5 min.) 4. Ludwig Kurz ITEM/TOPIC: Fire Services Update (10 min.) Pam Brandmeyer 5. Pam Brandmeyer ITEM/TOPIC: Request to Participate in a Joint Study to Explore Consolidated Fire and Emergency Medical Service (EMS). (5 min.) BACKGROUND: The Town of Vail and Eagle River Fire Protection District operate fire services for their constituents. Each fire department also provides first response EMS service in advance of a response from a third taxing district, which provides Advanced Life Support and transport services to the local hospital. These three governments tax and charge separately for their services. There is a growing interest in the community to see services merge and consolidate to achieve greater. economies of scale. Therefore, staff proposes to cost-share a study that would focus on what outcomes, both pro and con, would result from a merger of fire and EMS systems. The study would identify how the merged system would function and operate, and identify the cost economies and quality of service. The cost of the study is estimated at $30,000.Other potential partners include Vail Valley Medical Center, Eagle River Fire Protection District, Beaver Creek Metro District, Eagle County Ambulance District and Western Eagle County Ambulance District. ACTION REQUESTED OF COUNCIL: Direct staff to proceed with acost-share contribution not to exceed $10,000 to fund a study to explore consolidated fire and EMS service. 6. Taylor Hawes ITEM/TOPIC: Northwest Colorado Council of Governments (NWCCOG) Discussion re: Governor's Water Initiatives and Other Items (20 min.) BACKGROUND RATIONALE: Taylor Hawes, Co-Director of NWCCOG Committee, will discuss statewide matters related to water such as the Statewide Water Supply F ~l Initiative, Referendum A and the Colorado River Return Project ('the Big Straw"). 7. Rebecca Leonard ITEM/TOPIC: Eagle County Master Plan Update (15 min.) BACKGROUND RATIONALE: The current Eagle County Master Plan was written and adopted in 1996. Many things have changed since then, including the county staff's ability to do astate-of-the-art plan for the county. The county has the benefit today of GIS, more up-to-date information for the census and other technological advances that will help in creating a more user friendly document. The county's senior planner, Rebecca Leonard, will go over the process of creating an updated master plan and highlight points in the process for the Town of Vail to participate and provide input. 8. Judy Camp ITEM/TOPIC: 2002 Audit Report (15 min.) Mike Jenkins 9. Greg Hall ITEM/TOPIC: Review of Council Policy Direction to Vail Parking Task Force re: 2003-04 Ski Season Objectives (30 min.) ACTION REQUESTED OF COUNCIL: Review the parking policy objectives agreed to by the Vail Town Council and reaffirm and or change to provide direction to the Parking Task Force. BACKGROUND RATIONALE: The Council establishes parking policy objectives to provide direction to the Parking Task Force. The following policies have been adopted previously: • Provide Range of Product Types o Value for Skiers o Encourage Shopping and Dining • Charge for Value Provided o Yield Management • Increase Physical Parking Supply o Product Variety o Employee Options • Simplify Management Process o Consistency o Affordability of discounts 10. Greg Hall ITEM/TOPIC: Approval of Vail Village Streetscape Two Year Construction Phase and Budget (20 min.) ACTION REQUESTED OF COUNCIL: Approve the two-year project plan, which includes snowmelt as outlined in a memo dated July 10, 2003 and recommended by the Vail Village Streetscape design committee. BACKGROUND RATIONALE: Capital budget appropriations are authorized annually each fall. In order to construct the first phase of the improvements next April, work on the final design and coordination with property owners, businesses, and special event promoters needs to begin by mid-August 2003. Additionally, in order to be cost-effective in both design and construction, it is recommended to complete a two year project plan. The actual construction contract will not be awarded until early 2004. STAFF RECOMMENDATION: Approve the two-year project plan for Vail Village Streetscape, including funds for snowmelt of public right-of-way as outlined, for 2004 and 2005. Direct staff to include project costs in the 2004 and 2005 annual appropriation ordinances for Council consideration in 2003 and 2004. Direct staff to enter into the final design contract with the design consultant team, Wenk and Associates. 11. Russell Forrest ITEM/TOPIC: Market Analysis and Business Plan Consultant Team Scott Proper Selection for the Vail Conference Center (30 min.) ACTION REQUESTED OF COUNCIL: Review the recommendation from the Conference Center Advisory Committee and provide direction to staff on whether to enter into contract negotiations with the recommended consulting team. BACKGROUND RATIONALE: The first phase of the Vail Conference Center project is to complete a market analysis and business plan for the facility. An RFP was issued at the Vail Town Council's direction on June 9 to solicit proposals for a market analysis and business plan. The Town received eight proposals, which were reviewed by the advisory committee. After reviewing the proposals, the advisory committee invited the top three consulting firms to Vail for interviews. The three teams included CH Johnson, HVS and EPS. The advisory committee is requesting the Council direct the Town of Vail staff to enter into contract negotiations with HVS. 12. John Gulick ITEM/TOPIC: Dobson Ice Arena Smoke Management Discussion (5 min.) BACKGROUND RATIONALE: The Town of Vail Fire Marshal's office and Building Department received three RFP's from engineering firms on designing and installing a smoke control system for Dobson Ice Arena as recommended by ARUP. In order to increase the allowable occupancy from 1,000 to 3,000 persons during a special event, a smoke management and make-up air system must be installed. The system activates upon receipt of a smoke or fire alarm, thereby allowing for a safe and orderly evacuation of the premises. Shirmer Engineering Corporation, Rolf Jensen & Associates, Inc. and Beaudin Ganze Consulting Engineers, Inc. have submitted proposals. STAFF RECCOMMENDATION: Staff recommendation is to proceed with Beaudin Ganze (BGCE), due to ,•. their experience and successful history of working with the Town of Vail and Vail Recreation District (VRD). BGCE has a fee of $15,573 and Shirmer Engineering was $16,920. Beaudin Ganze provided electrical engineering services for Dobson Arena when VRD improved the building's emergency generator. The consulting firm also assisted in analyzing the snowmelt system adjacent to Dobson Arena in 1996. Staff also recommends inviting the VRD to share the expenses of the smoke management improvements 13. Matt Mire ITEM/TOPIC: First Reading of Ordinance No. 17, Series of 2003, an Ordinance Authorizing the Conveyance of Fee Title to Two Parcels of Real Property in the Town of Vail Adjacent to Property Commonly Known as the Old Town Shops and Legally Described as Part of Tract D, Vail Village, Second Filing; and Setting Forth Details in Regard Thereto. (15 min.) ACTION REQUESTED OF COUNCIL: Approve/Approve with modifications. BACKGROUND RATIONALE: These are two small parcels that were not conveyed with the Old Town Shop parcel and are contiguous to that land. They are required for the ERWSD to expand their operation. STAFF RECOMMENDATION: Approve 14. John Power ITEM/TOPIC: Resolution No. 7, Series of 2003, Approving Bylaws and an Intergovernmental Agreement with Colorado Intergovernmental Risk Sharing Agency (5 min.) 15. George Ruther ITEM/TOPIC: Resolution No. 8, Series of 2003, a resolution amending Section 8.4.2.3, Building Height, Lionshead Redevelopment Master Plan, to further clarify the calculation of the maximum average building height of buildings constructed in the Lionshead Mixed Use -1 and 2 zone districts, and first reading of Ordinance No. 18, Series of 2003, an ordinance amending Section 12-2-2, Definitions, Title 12, Zoning Title, Town Code of Vail, to define terms used in the determination of building height in the Town of Vail, and setting forth details in regard thereto. (20 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Resolution No. 8, Series of 2003, and Ordinance No. 18, Series of 2003, on first reading. BACKGROUND RATIONALE: The Department of Community Development requested that the Planning and Environmental Commission review an administrative interpretation of the maximum height calculation for structures constructed in the Lionshead Mixed Use zone districts. Staff's request was in response to recent discussions regarding the calculation of the average maximum ,. height from which staff has concluded that further clarification is necessary to ensure that the intent of the regulation has been met. Specifically, staff recognized that there are multiple methods of measuring average maximum height and numerous questions about how to implement the height calculation. Outlined in Section V of the Planning and'Environmental Commission memorandum, dated Jan. 13, is the preferred and recommended method of calculation. This request was brought to the Planning and Environmental Commission for review and consideration, pursuant to Section 12-3-3, Vail Town Code. On Jan. 13, following three work session meetings with the Commission on this topic, the Commission voted unanimously to forward. a recommendation of approval of the proposed amendment to the Lionshead Redevelopment Master Plan and the Zoning Regulations of the Vail Town Code to the Vail Town Council. A copy of the Planning and Environmental Commission memorandum, dated Jan. 13, has been attached for reference. STAFF RECOMMENDATION: The Community Development Department recommends that the Vail Town Council approves Ordinance No. 18, Series of 2003, on first reading and Resolution No. 8, Series of 2003. 16. Town Manager's Report (5 min.) 17. Adjournment (9:30 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, AUGUST 19, 2003 IN THE TOV COUNCIL CHAMBERS. THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BEGIN AT 6 P.M. ON TUESDAY, AUGUST 19, 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. DRAFT VAIL TOWN COUNCIL MEETING MINUTES TUESDAY, JULY 1, 2003 The regular meeting of the Vail Town Council was called to order at 7:00 P.M., on Tuesday, July 1, 2003, in the Vail Town Council Chambers. MEMBERS PRESENT: Ludwig Kurz, Mayor Rod Slifer, Mayor Pro-Tem Dick Cleveland Diana Donovan Bill Jewitt Greg Moffet Chuck Ogilby STAFF PRESENT: Pam Brandmeyer, Interim Town Manager Matt Mire, Town Attorney The first item on the agenda was Citizen Participation. Tom Steinberg appeared before the Council to offer his reluctant support for the temporary use of the Ford Park softball fields for ski season parking. Steinberg suggested that a contract be signed between the town and Vail Resorts in which the two parties would agree to certain terms and conditions. He suggested the use be temporary, perhaps a minimum of three years, and that Vail Resorts be required to restore the fields to their natural state at the end of the contract period. Steinberg's apprehension, in part, is due to safety concerns, he said. Steinberg suggested the need for a safe pedestrian route, such as across the Manor Vail bridge or the streamwalk, rather than alongside the Frontage Road or Vail Valley Drive. While noting some fundamental disagreements about the town's parking role, which he said lies squarely with Vail Resorts, Joe Staufer also said he would find use of the fields at Ford Park acceptable to people so long as the use is limited to fewer than five years, the cost is borne by Vail Resorts and the fields are restored to their natural state once the use is complete. Staufer also suggested the need for a contractual agreement to avoid misunderstandings in the future. Flo Steinberg expressed opposition to using the fields for ski season parking, criticizing Vail Resorts for its decision to continue to attract day skiers to the resort. Steinberg said the company's actions will cause overcrowding situations and will negatively impact the destination skier market. Kaye Ferry of the Vail Chamber and Business Association (VCBA) presented the organization's parking recommendations in preparation for Town Council consideration of the 2003-04 winter program. The VCBA recommends restoration of the 90-minute free parking program and the return of Free After 3. In addition, Ferry said the group endorses alternative parking options, such as use of the Ford Park softball fields, to keep cars off the Frontage Road. Bill Hanlon expressed support for returning to the Free After 3 parking program, as well as other parking options, such as the Ford Park proposal. If parking is allowed on the Frontage Road next season, Hanlon suggested shortening the time allowed on the roadway, saying the 11 p.m. allowance is too long. With the parking structures emptying out after the lifts close, Hanlon said vehicles from the Frontage Road could be moved into the structures, which would also improve late-night pedestrian safety. On behalf of his family's business, John Gorsuch also expressed support for reinstating the Free After 3 parking program, saying it contributes to the town's vitality. Gorsuch also stressed the importance of having ample customer parking. Paul Rondeau emphasized pedestrian safety concerns in suggesting the town eliminate parking on the Frontage Road during ski season. He noted the town's liability, be it moral or legal, in the event of a tragic accident. The second item on the agenda was the Consent Agenda re: June 3 and June 17 Evening Meeting Minutes. Greg Moffet moved to table approval of the June 3 meeting minutes and to approve the June 17 minutes. Dick Cleveland seconded the motion. The Council asked that revisions be made to the June 3 minutes to clarify its discussion on the fire services agenda topic. The third item on the agenda was a Tax Equity and Fiscal Responsibility Hearing Act (TEFRA) Hearing. To meet the technical requirements of the Internal Revenue Service Code, the Council conducted a public hearing to solicit comments on the town's role in the issuance of private activity bonds for the Middle Creek Village housing development. No testimony was offered. The fourth item on the agenda (originally item #12 on the agenda) was the second reading of Ordinance #15, Series of 2003, regarding Private Activity Bonds for Middle Creek, authorizing issuance of a maximum of $18.5 million in bonds by the town for the Middle Creek Village housing development. Greg Moffet moved to approve the ordinance as read. Bill Jewitt seconded the motion. A vote was taken and the motion passed 6-1, Diana Donovan opposed. In voting to approve the ordinance, Councilmembers said the town's role was to serve as a conduit to obtain tax-exempt status. There is no debt or obligation on behalf of the town. Bond proceeds will be loaned to Middle Creek Village, LLC., which will be solely responsible to pay for debt service on the bonds as well as issuance costs. In voting against the ordinance, Councilmember Diana Donovan said the Middle Creek project doesn't serve the town's interests and would be turned down if it went to a public vote. The next item on the agenda was a discussion on the November Election. During the discussion, Interim Town Manager Pam Brandmeyer had asked the Council to consider adding an additional .61 mills to the ballot measure for staffing and operation of the third fire station, noting that a funding source for the anticipated $325,000 in annual expenses is yet to be identified. At the suggestion of Dick Cleveland, the Council majority said it preferred to exclude operational expenses from the ballot so as not to inhibit consolidation discussions with other emergency services providers. During the public comment period, Paul Rondeau said that while he was an opponent of a 4 mill property tax increase which was placed on the ballot by the Town Council last year, he would be a proponent this time, largely because of what he described as a "bite-sized" proposal. Rondeau said a property tax for fire and first responder services in the new Millennium would serve a need to help restore the split in sales tax revenue allocations between town operations and capital costs. More specifically, he said a third fire station would meet an established need in that it would: 1) strategically locate a fire station on the north side of I-70 and on the west end of town; 2) provide more uniform, fast response time for fire and first responder services along the 10 mile long town; and 3) provide needed back-up when multiple emergency services events occur in town or on I-70. Rondeau said he would support adding operational expenses to the ballot measure so long as an annual audit could be conducted to judge productivity and effectiveness. He also suggested that a fire company citizens academy be formed to add a volunteer component to the department's operations. Also speaking was Rick Scalpello who suggested that ademo- rebuild of the Main Vail fire station may be more cost-effective than a remodel. Dick Cleveland moved to direct staff to prepare an ordinance for the November ballot that would contain a property tax of fewer than .81 mills which would be used to construct and equip a new fire station in West Vail and to rebuild the Main Vail fire station. Greg Moffet seconded the motion. A vote was taken and the motion passed 5-2, Bill Jewitt and Diana Donovan opposed. In voting against the motion, Bill Jewitt said the town should find a way to fund core services, such as fire station improvements, out of existing revenues rather than rely on voter sentiment, while Diana Donovan raised questions about the need for a third fire station. The mill levy would sunset after the bonds are retired. In voting to lower the .81 mill levy rate, the Council majority asked that a new rate be established that would correspond to a modified construction budget of $3.2 million for the new fire station. The .81 mill levy rate had been calculated based on a $4.2 million fire station budget. The next item on the agenda was a Request to Honor Fallen Cyclist Brett Malin. The Council approved a request by Adam Palmer and other members of the cycling community to erect a memorial plaque on the Dowd Junction recreational path bridge to honor Brett Malin, who was killed on June 18 when he was hit by a tractor trailer while 3 competing for Team Vail during the Race Across America cycling event. The plaque will be erected on or before July 13 to coincide with a community memorial service. The group was asked to coordinate details with Interim Town Manager Pam Brandmeyer. The next item on the agenda was the Ore House Awning Appeal. Allison Ochs, town planner, presented the appeal to the Council, stating the applicant was appealing to overturn Design Review Board denial of a plastic shade on the dining deck at the Ore House and to direct staff to explore a regulatory component for future applications. Ochs stated the Ore House shade was intended to shield patrons during inclement weather. During his appeal to the Town Council, applicant Larry Anderson, manager of the Ore House, said the shade/awning had been in place for 4 to 5 years and had caused no harm to anyone. The device is never used in the winter, he said, and is used sparingly during the summer. In addition, Anderson said his restaurant has no interest in enclosing the outdoor dining deck and is prohibited from doing so. Anderson also raised an equity issue, noting that a similar plastic awning is in use at Pepi's. While noting the shade/awning has been in use for several years, Mayor Ludwig Kurz also noted the businesses' failure to receive town approval, which was acknowledged by Anderson. During the public hearing, John Gorsuch urged the Council to allow the plastic awning, noting its utilitarian function and its widespread use at other resorts across the country. Also speaking in favor of the appeal was Kaye Ferry of the Vail Chamber and Business Association who said the plastic awnings, which are discouraged by the town's guidelines, would be less intrusive than the allowable canvas material. Ferry likened the awning request to an umbrella and urged the Council to be a proactive partner in responding to business needs. Greg Moffet made a motion to overturn the DRB decision subject o design guidelines. Bill Jewitt seconded the motion. A vote was taken and the motion passed 6-1, Donovan opposed. In voting to overturn denial of the application, Councilmembers found that the plastic shades meet the intent of the design guidelines. In voting against the motion, Diana Donovan expressed concerns about an eventual deck enclosure and the lack of conditions tied to the application. The next item on the agenda was an appeal of the June 9, 2003, Planning and Environmental Commission decision to approve with conditions a request for a variance for Nine Vail Road Parking and Loading. The Nine Vail Road parking issues surfaced during review of the redevelopment application for the adjacent Four Seasons Resort property, which originally had a joint parking plan. Final approval of the Four Seasons redevelopment plan by the PEC had been contingent on approval of a plan for the four parking spaces at Nine Vail Road. Greg Moffet made a motion to modify a Planning and Environmental Commission (PEC) decision which approved~a variance to allow for two parking and loading spaces in the front setback at Nine Vail Road with two other parking spaces to be located within the parking structure of the adjacent Four Seasons Resort. In modifying the PEC decision, all four parking spaces will be relocated to the Nine Vail Road parking garage entry off Meadow Drive with a landscaping plan to be approved by the Design Review Board. A vote was taken and the motion passed unanimously, 7-0. Following the vote, Councilmember Diana Donovan suggested properties be grandfathered when similar circumstances occur rather than declare properties to be non-conforming as was the case with Nine Vail Road. Jim Lamont of the Vail Village Homeowner's Association offered similar comments, saying the town should accommodate properties to make them whole again rather than declare them to be non-conforming. The next item on the agenda was a 2004 Allocation Request for Commission on Special Events. Greg Moffet moved to approve a $565,000 funding request from the Vail Commission on Special Events to be included in the 2004 budget. Bill Jewitt seconded the motion. A vote was taken on the motion and the motion passed unanimously, 7-0. Requests fora 03-04 parking pass, continued legal support and copying services also received approval. Greg Moffet made a motion to authorize $50,000 in the next 2003 supplemental budget appropriation to help the Vail Valley Chamber and Tourism Bureau (VVCTB) establish an icon event for Vail as the exclusive resort sponsor of the Professional Cycling Tour, the nation's largest pro cycling series, which draws crowds of 300,000 during its established stops in Philadelphia, New York and San Francisco. Bill Jewitt seconded the motion. During an overview, Rick Chastain of the VVCTB said the annual Labor Day weekend event would have an immediate return on investment for Vail and would be financially self-supporting by 2006. While Chastain had asked for consideration of a $100,000 request from the town, Councilman Greg Moffet suggested acost-share between the town's budget and funding from the Vail Local Marketing District. A vote was taken and the motion passed 7-0. In voting to approve the $50,000 allocation from the town, Mayor Ludwig Kurz said the cycling event would be similar in marketing magnitude as that of the New York Philharmonic. The next item on the agenda was first reading of Ordinance #6, Series of 2003, An Ordinance to Allow Type II Employee Housing Unit as a Permitted Use The Council voted 5-2 (Donovan and Jewitt against) to approve first reading of an ordinance 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 town's residential -zone districts. In presenting the recommended changes, Bill Gibson, a planner in the Community Development Department, said the proposed text amendments would improve efficiency of the development review process and had been recommended for approval by the Planning and Environmental Commission. However, in voting against the motion, Councilmember Diana Donovan questioned the rationale, saying some employee housing unit applications have been inappropriate and, therefore, should continue to be evaluated as a conditional use. She also called for additional reforms by the town to enforce occupancy requirements. In voting to approve the ordinance, Dick Cleveland said he considered it to be an appropriate change with minimal downsides. During the public comment period, Jim Lamont of the Vail Village Homeowners Association asked the Council to defer final reading of the ordinance until the outcome of the GRFA (gross residential floor area) discussion has concluded. Dick Cleveland moved to approve Ordinance #6, subject to findings in the staff memo. Greg Moffet seconded the motion. A vote was taken and the motion passed 5-2, Bill Jewitt and Diana Donovan opposed. The next item on the agenda was the first reading of Ordinance No. 16, an ordinance to allow the separate sale or transfer of Type II Employee Housing Unit. Greg Moffet recused himself from the discussion due to a contractual relationship with the applicant. Councilmembers Bill Jewitt, Dick Cleveland and Rod Slifer expressed concerns about maintaining affordability of the units as well as the impact when duplexes become triplexes as a result of the sale. Diana Donovan also expressed opposition, questioning the 1,500 sq. ft. maximum size, as well as other issues. In offering support for the change, Councilman Chuck Ogilby pointed to the town's existing code which allows for the sale of Type III housing units on high-density residential and commercial property. To be consistent, Ogilby said the town should also do the same for Type II units in the lower-density residential zone districts. The applicant, Greg Amsden of AMS Development, had proposed the change as an incentive to address the need to create employee housing opportunities for professionals in Vail. Dick Cleveland made a motion to deny the Ordinance #16 on first reading. Bill Jewitt seconded the motion. A vote was taken and the motion failed 5-1-1, with Chuck Ogilby voting in favor. Chuck Ogilby encouraged the Council to continue to work on an acceptable solution. The next item on the agenda was the first reading of Ordinance #14, an Emergency Ordinance to Authorize Creation of Timber Ridge Affordable Housing Corporation and the Making of a Loan to Acquire Property. Matt Mire, town attorney, and Nina Timm, housing authority administrator, presented the ordinance to the Council, stating this emergency ordinance was to authorize creation of the Timber Ridge Housing Corporation and the making of a $lmillion loan from the Town of Vail (proceeds from the Miller Ranch sale) to the Timber Ridge Affordable Housing Corporation for acquisition of the Timber Ridge apartments. An additional $21 million in debt will be issued by the corporation. The action was initiated in April when the Town Council voted 7-0 to pass a resolution to seek a friendly condemnation of the 198-unit property. Acquisition by the town enables the property to be maintained as employee housing in perpetuity. Bill Jewitt motioned to approve Ordinance # 14 as an emergency ordinance. Greg Moffet seconded the motion. A vote was taken and the motion passed unanimously, 7-0. The next item on the agenda was the Town Manager's Report. In reviewing the Town Manager's Report, the Council modified a staff request for town use of the Donovan Pavilion, adding a May 2004 date for the town's clean-up day, eliminating a request for use on New Year's Eve as well as requests by the Police Department for training. Also, during its review of the Town Manager's Report the Town Council voted 7-0 to approve a request by Interim Town Manager Pam Brandmeyer to authorize a 2.5 percent merit increase for town employees. While the increases, representing $250,000, had been carried in the 2003 budget, Brandmeyer had asked for Council approval prior to implementation. In response to a third item on the Town Manager's Report, the Town Council voted 7-0 to endorse implementation of a reserve police officer program. A question regarding a reserve officer's authority to carry a weapon was referred to Police Chief Dwight Henninger. As there was no further business, Rod Slifer motioned to adjourn. Bill Jewitt seconded the motion. A vote was taken and the motion was passed unanimously, 7-0, and the meeting was adjourned at 9:30 P.M. Respectfully submitted, Ludwig Kurz, Mayor ATTEST: Lorelei Donaldson, Town Clerk AGENDA J~~ ~ EVENING MEETING 1~- 6 P.M. TUESDAY, JULY 1, 2003 j 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 mm ~' "x-~k..' ~0•w'((~.QrdCa,.raQ.• ~(~ v ~P-P"'°b ~ ~'~ 2• ~ • Qi~, (~; 6S ITEM/TOPIC: Consent Agenda re: June 3 andl JtYhe 17 Evening Meeting f~G~~-~u~.e.3 gendas (5 min.) 3. Mike McGinn TEM/TOPIC: Tax Exempt Financing Reclamation Act (TEFRA) Hearing Matt Mire (~~ f b 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. ~~P~,.~ ~ K~`~~~y/ COMMENDATION: V (g~(1,~~ Conduct the public TEFRA Hearing in order to obtain tax-exempt status # l~' ~NcL . (S for the Private Activity Bonds for Middle Creek Village. 4. Judy Camp (~;~ ITEMROPIC: November Election Discussion (30 min.) • ~ ~~~ ~ Pam Brandmg~yer ~,,~, , (~ ~ 3.d ~ ~~ ~' ~~~~• ~~ ACTION REQUSTED OF COUNCIL: (g '"• s4-t,at~~~~-~'O~•• ~j ~ P"" r~~v~'ide staff direction on ballot preparation and~r additional fact-finding.. ~~ ~~" BACKGROUND RATIONALE: Jr. a.- ~~ ~3• ~ The Town Council has been evaluating a list of possible ballot options for ~~j; u,• ~~~~ `~S ~ 5~ the upcoming November election. During the June work sessions, those ~b~ ~~ options were narrowed to a ballot measure that would seek support for a ~ ~ ~`0~ ~~~ 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 F election timetable requires first reading of a ballot ordinance at the August ©~ S ~'~`~ 5 evening meeting. ~~`~ i. ~ ~ STAFF RECOMMENDATION: ~~ ~ ff recommends preparation of a ballot measure that covers the cost of constructing, equipping and staffing a third fire station as we!! as ~~ renovation of the Main Vail fire station. ~~ '~ C~'1~,o'a~ecd' ' ~. ' ~ ICU-- ~, ~~~`' f,, , ~ ~ ~ ~ rc.. ~6'i"~1 Q7~- ~ (.~'f}.d.,~.~. ~16G0~~1^fJ~C `~~ .~~~ 5 lison Ochs x:55 . ~(v ~0 ~c ~` 5-5 ~ ~. a ' .~ .~W" Gr ITEMlTOPIC: Appeal of the May 21 Design Review Board decision to deny the proposed awnings at the Ore House, located at 232 Bridge Street / Lots Cand-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`O~hs 7~ fQ ITEM/TOPIC: Appeal of the June 9 Planning and Environmental ~p ~~nNN Commission decision to approve with conditions a 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 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 r 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. Sybil) Navas "(:fib ITEM/TOPIC: 2004 Allocation Request for Commission on SpecJ',al Eaents ~ ~ ~' (5 min.) ~ SbS, bib - c~-~.~ 1 ~t.P-~ • (91~ ~t •b . ick~~in'1:y,5 ITEM OPI 04 Allocation Re r Pro Cy g mi .) ~~- '~C~,e.P~t, '~ b3 C~ .n,b.~s b ~~ - of GF ~ 9. Bill ibson '7:50 tTEM/TIC: f~irs~tl'rea mg~Sf Or ' ance No. 6, Series of 2003, ordinance amending Sections 12-6B- -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), ~q~~ _ ~ Two-Family Residential (R), and Two-Family Primary/Secondary xx'"' ~• 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 ll 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 ibson 8:0~ ~'EM/TOPIC: First Reading of Ordinance No. 16, Series of 2003, an \ ~ ~Cordinance amending Section 12-13-4, Requirements by Employee V v7 ~ ~., Housing Unit .(EHU) Types, Vail Town Code, to amend the Type II EHU .`C ~, requirements, to allow the separate sale or transfer of Type II EHUs, and ('„~1~ , 4~ ~, ~ setting forth details in regard thereto. (30 min.) -1~h ~~, ~~ ~ .~ ACTION REQUESTED OF COUNCIL. ,~, ~~ xb , ~ Listen to a staff presentation on the proposed text amendment ordinance - ~~ ~ ~~ r 1 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 x'35 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 ~j:bS Private Activity Bonds for Middle Creek (15 min.) ACTION REQUESTED OF COUNCIL: ~ • ~ Approve. ~,g~` ~' U BACKGROUND RATIONALE: U, 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. f STAFF RECOMMENDATION: Approve 13. ~1:dD Town Manager's Report (5 min.) 14. Adjournment (9:25 P.M.) ~a ~~ ~. ~', c~; ~ 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. Mary Caster - Re: Vail Town Council Highlights Page 2 ;~ ~~~ ~ ~ Department at 479- ~~ --Ordinance to Allow the Separate Sale or Transfer of Type II Employee Housing Units The Council voted 5-1-1 (Ogilby against; Moffet recused himself due to contractual relationship with the applicant) to deny first reading of an ordinance that would allow the sale or transfer of a Type II employee housing unit. In voting to deny the ordinance, Councilmembers Bill Jewitt, Dick Cleveland and Rod Slifer expressed concerns about maintaining affordablility of the units as well as the impact when duplexes become triplexes as a result of the sale. Diana Donovan also expressed opposition, questioning the 1,500 sq. ft. maximum size, as well as other issues. In offering support for the change, Councilman Chuck Ogilby pointed to the towns existing code which allows for the sale of Type II housing units on commercial property. To be consistent, Ogilby said the town should also do the same for Type II units in residential zone districts. The applicant, Greg Amsden of AMS Development, had proposed the change as an incentive to address the need to create employee housing opportunities for professionals in Vail.Ogilby encouraged the Council to continue to work on an acceptable solution.For more information, contact Bill Gibson in the Community Department at 479-_ C^AFT VAIL TOWN COUNCIL EVENING MEETING TUESDAY, JULY 15, 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. MEMBERS PRESENT: Ludwig Kurz, Mayor Rod Slifer, Mayor Pro-Tem Dick Cleveland Diana Donovan Bill Jewitt Greg Moffet Chuck Ogilby STAFF PRESENT: Pam Brandmeyer, Interim Town Manager Matt Mire, Town Attorney The first item on the agenda was Citizen Participation. There was none. The second item on the agenda was the Consent Agenda. Greg Moffet moved to approve the meeting minutes for the June 3, 2003, meeting. Dick Cleveland seconded the motion. A vote was taken and the motion was unanimously approved, 7-0. The third item on the agenda was the Vail Town Council Sitting as the Vail Local Marketing Board. Convening as the Vail Local Marketing Board, the Council heard a quarterly update from the Vail Marketing Advisory Council. The presentation began with a market research overview by Bill Siegel, president of Longwoods International. Among the findings: --Vail is appealing to families. --Visitors come for the active outdoors experience, elegant restaurants and sightseeing, among other activities. --Vail appeals to residents on the Front Range as a "weekend getaway," but less so fora "summer vacation." --Nationally, Vail is -seen as a small place with not enough to see and do in the summer; it has a strong, positive image as a winter resort. --Vail's product delivery is rated very favorably by those who visit. Since 2002, Seigel said the marketing campaign has aimed to refocus Vail's message to that of an upscale mountain resort with attributes to include: --excitement and adventure --all season, not just winter --welcoming --wide variety of things to see and do --the ideal/only headquarters for an upscale Rocky Mountain summer experience Following Seigel's presentation, updates were presented on the budget, which is funded by a 1.4 percent lodging tax, plus campaign results year-to-date. Those results include a 19 percent increase in bookings over last summer, more group and meetings business and increased traffic on the web site www.vailsummer.net. Spokesperson Kelli McDonald of the Vail Valley Chamber and Tourism Bureau attributed the increases to additional progress in coordination, communication and cooperation among the various vendors and partners. During the discussion, Bill Jewitt reminded the Advisory Council that funding from the lodging tax must be used for Vail-only purposes and that cost-share funding for PRIMA, a cultural partnership that includes promotion of the Vilar Center as well as activities in Ford Park, must come from other sources, such as the town's general fund. In seeking clarification, Councilmembers said it would be appropriate to integrate PRIMA into the overall marketing program. However, any direct contributions to the PRIMA budget must come from a funding source other than the lodging tax. During its last order of business, the Board voted 7-0 to allocate $50,000 from a $90,000 contingency fund in the 2003 marketing budget to fund a request to bring the Pro Cycling Tour to Vail. The allocation matches. a $50,000 contribution authorized previously by the Vail Town Council from general fund revenue for a total pledge of $100,000. The fourth item on the agenda was a Fire Services Update. As a follow up to an executive session earlier in the day regarding fire services negotiations, the Council directed staff to prepare two November ballot questions for consideration at its August 5 evening meeting. The first would transfer 3.8 mills from the town's current 4.69 mills to the Eagle River Fire Protection District for consolidated fire services. As such, the Eagle River Fire Protection District would agree to build a West Vail fire station, remodel the Main Vail station and cover ongoing personnel and other operational costs for the three fire stations in Vail. A second ballot option to be reviewed by the Town Council is a $4.3 million general bond issue that would be used to fund and equip a new West Vail fire station and renovate the Main Vail fire station. This would result in a mill levy increase of approximately .59 mills, which would sunset after the bonds are retired. The town staff was also directed to continue fire and emergency services consolidation discussions with the Eagle County Ambulance District and the Beaver Creek Metro District as additional options. The scenarios were presented by Councilman Dick Cleveland who has been instrumental in facilitating the consolidation discussions. Cleveland reiterated the Council's commitment to build and staff a West Vail fire station and to remodel the Main Vail fire station. He said the. alternatives are intended to result in additional efficiencies for taxpayers while delivering 2 seamless fire and life safety services to the Town of Vail. Councilman Greg Moffet commended the consolidation efforts, noting that "people are trying to do the right thing.".The Council must approve two readings of a ballot ordinance during its meetings in August to qualify for placement on the November election ballot. The fifth item on the agenda was a Request to Proceed Through the Town's Development Review Process for Temporary Use of the Ford Park Softball Fields for Parking During the 03-04 Ski Season. Bill Jewitt moved to approve a request to proceed through the town's development review process for the temporary use of the Ford Park softball fields for public parking during the 2003-04 ski season. Greg Moffet seconded the motion. A vote was taken and the motion was approved unanimously, 7-0. The process requires an amendment to the Ford Park Master Plan, which currently prohibits parking on the softball fields; approval of a conditional use permit; design approvals; and agreements from the Colorado Department of Transportation. The request was presented to the Town Council following a discussion by the Vail Parking Task Force on July 9, in which the group suggested returning to the Town Council for authorization to explore the concept on a formal basis. Prior to the Council discussion, Mayor Ludwig Kurz read a letter into the public record from Josef Staufer, in which Staufer offered reluctant support for the proposal, so long as the temporary use is kept to a maximum of three seasons on the condition that a satisfactory long-term plan is identified by Vail Resorts within the first year; that the costs are borne by Vail Resorts; the fields are restored to their natural state; that artificial turf be prohibited; and that Vail Resorts and the Town of Vail sign a contractual agreement outlining the terms and conditions. In making the motion to allow the development review process to take place, Councilman Bill Jewitt said that although some might not like the eventual outcome, it was important to initiate the process so decisions can be reached prior to the start of ski season. During the discussion, Councilmember Diana Donovan expressed concern, saying that once the fields are used for parking, the temporary solution will become permanent, and Vail Resorts will be let off the hook for a future solution, thus, lowering Vail's standards. While Councilman Dick Cleveland said he shared similar concerns, he said he'd be willing to consider the use of Ford Park as an interim solution so long as a permanent solution is on the horizon. Councilman Chuck Ogilby asked that Vail Resorts serve as the project's applicant and that discussions take place between representatives from the town and Vail Resorts to determine what the company will pay for. Public Works Director Greg Hall said the Ford Park concept could add between 600 and 700 temporary spaces to the parking inventory. The sixth item on the agenda was a Request to Proceed Through the Town's Development Review Process with a Proposal to Construct a Bridge Across Gore Creek to Allow Snowcat Access to Vail Mountain from the Maintenance Facility in Lionshead. Rod Slifer stated he would be recusing himself from this item, due to a conflict of interest. George Ruther, head of planning, presented the request to the Council, stating Vail Resorts, Inc. was requesting the town allow them to proceed through the town's development review process for construction of a proposed bridge across Gore Creek to allow snowcat access to Vail Mountain from the maintenance facility in Lionshead. As 3 proposed, the access route would be located across the site of the new wastewater treatment plant, across a new bridge over the creek and connecting to the Westin Ho ski trail. Since the proposed route included a portion of Town of Vail land, the Town Council was asked to grant its permission to allow Vail Resorts to submit a development review application. During discussion, Councilman Chuck Ogilby expressed concerns about cuts that would be made to the hillside. He suggested use of the recreation path as an alternative. Greg Moffet moved to approve the request from Vail Resorts. Dick Cleveland seconded the motion. A vote was taken and the motion passed 6-0, with Slifer recused. The seventh item on the agenda was Ordinance #6, second reading, an Ordinance Allowing Type II Employee Housing Unit as a Permitted Use and to Eliminate Type II Employee Housing as a Conditional Use in the Residential Zone Districts. Greg Moffet made a motion to table to Aug. 19 the second reading of an ordinance 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 town's residential zone districts. Dick Cleveland seconded the motion. In making the motion to table, Councilman Greg Moffet suggested postponing a final decision on the ordinance pending a discussion on the town's ability to enforce required occupancy provisions for employee housing units. While the town has strengthened employee housing unit occupancy requirements, first in 1994, and again in 2000, Councilmember Diana Donovan, in particular, has long questioned the effectiveness of the town's enforcement provisions. Property owners must now file an affidavit with the town each year to comply with the regulations, which require employee housing units to be occupied by a person who works a minimum of 30 hours a week within Eagle County. Despite the regulations, Donovan says she believes many of the units are either unoccupied or are being misused with inaccurate information provided to the town. Councilman Dick Cleveland, one of the original members of the Vail Housing Authority, said he thinks the town has more work to do in its requirements and enforcement of employee housing units. He said Aspen has done a good job with its enforcement regulations. While Community Development Director Russell Forrest said the town has prosecuted several violators within the past year, he said a discussion to determine the level of enforcement and associated resources desired by the Council would be an appropriate next step. A vote was taken on the motion and the motion passed unanimously, 7-0. Councilman Greg Moffet suggested that if the Council approves EHUs as a use by right, the trade-off should be an annual inspection with enforceable sanctions for those who don't comply. Town Attorney Matt Mire said the current penalty for violators is up to six months in jail or a $999 fine, or both, plus fines for each day the violation continues, which prompted Moffet to suggest the town do more to use its enforcement tools already in place. Councilman Bill Jewitt noted the need to discuss the potential impact to EHUs should the town eliminate GRFA (Gross Residential Floor Area). Councilman Chuck Ogilby suggested Forrest and Police Chief Dwight Henninger meet to develop a proposal to address some of the issues. The eighth item on the agenda was the second reading of Ordinance #9, regarding a Special Development District for Four Seasons Resort. At the staff s request, Greg 4 Moffet moved 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. The ordinance was tabled to Aug. 19 to address conditions of approval as they relate to off-site improvements. 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 ninth item on the agenda was the second reading of Ordinance #10, regarding Rezoning of Vail Amoco Station. Also at the staffs request, Greg Moffet moved to table second reading of a companion ordinance to rezone the Vail Amoco site from the Heavy Service zone district to the Public Accommodations zone district. Dick Cleveland seconded the motion, A vote was taken and the motion passed unanimously, 7-0. The ordinance was tabled to Aug. 19 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 tenth item on the agenda was the Town Manager's Report. The Council agreed to proceed with designs for the reconstruction of Pirate Ship Park to include replacement of the wooden bridge over Mill Creek. At the suggestion of Councilmember Diana Donovan, the Council selected apre-fabricated timber construction design for the bridge. In reviewing the Council's list of pending projects, Councilman Chuck Ogilby suggested a discussion on the status of a proposal to create a Business Improvement District and the associated impacts on the town's business license fee structure and funding for special events. Ogilby also inquired about the need to reconvene the Donovan Pavilion Committee to address several issues. Councilman Rod Slifer suggested a site visit to the Vail Mountain School soccer field, which has been installed with artificial turf. The suggestion followed a comment from Dick Cleveland, who noted extensive wear and tear on Vail's natural turf fields during the three-week long Lacrosse tournament. The site visit has been scheduled for Aug. 5. As there was no further business, Greg Moffet moved to adjourn. Bill Jewitt seconded the motion. A vote was taken and the meeting was adjourned at 9:05 P.M. Respectfully submitted, Ludwig Kurz, Mayor 5 ATTEST: Lorelei Donaldson, Town Clerk Minutes taken by Pam Brandmeyer and Suzanne Silverthorn. COMMUNITY DEVELOPMENT DEPARTMENT (970)328-8730 FAX: (970) 328-7185 Email: eccmdeva@eagle-county.com www.eagle-cou nty.com July 25, 2003 Jami Wilson Town of Vail 75 S. Frontage Road Vail, Colorado 81657 RE: Eagle County Master Plan Update Dear Ms. Wilson, Thank you for making time for us on the Town Council's agenda. I look forward to discussing the update process for the county master plan. The current Eagle County Master Plan was written and adopted in 1996. Many things have changed since then, including the County staff's ability to do astate-of--the-art plan for the county. The County has the benefit today of GIS, more up-to-date information from the census, and other technological advances that will help in creating a more user- friendly document. I will go over the process we have laid out for the project. I will then highlight points in the process for the towns to provide their input. Finally, I will be happy to answer any questions. All residents of Eagle County are encouraged to participate in the process and to provide their input. Thank you for your time. Respectfully, . Rebecca Leonard, AICP Senior Planner Eagle County, Colorado Eagle County Building, 500 Broadway, P.O. Box 179, Eagle, Colorado 81631-0179 L~ ~ 29 5.0 3 ~-~tt..~ ~ From: "Arn Menconi" <arn@vail.net> To: <ssilverthom@ci.vail.co.us> Date: 8/5/03 2:39:36 PM Subject: Referendum A Suzanne, Tonight the Vail trustees will hear issues with regards to Referendum A. I am sorry, but I will not be present. I would like to request that the the Town of Vail Board of Trustees oppose Referendum A. I would like the following presented for their consideration. I am writing to the Trustees of the Town of Vail to oppose Referendum A. As a Commissioner for Eagle County, I believe it's my duty to protect the sufficiency of water for our citizens and for the state of Colorado; however, I do not believe Referendum A serves as benefit to us. 1 wish for your board to take action today and oppose Referendum A to assist our citizens in understanding the problems with the initiative. Over the past several weeks many leaders have opposed Referendum A (Congressmen Mark Udall & Scott McInnis, the Colorado River District, the Natural Resource Committee for Club 20, nearly every west slope state legislators, and Upper Eagle Regional Water Authority and the Eagle River Water and Sanitation District). These leaders in water issues have exposed over a dozen critical flaws, of which I will share a few of the biggest: It's important to know that financing for water projects is not a current problem. Water providers already have the ability to issue bonds themselves, and no project is being delayed because of lack of funding. There is no legislative or public oversight. The referendum calls for the Governor to start a water project by 2005, but no project under this $2 billion dollar plan ever comes back for legislative approval. These bonds are meant to be paid by user fee increases which mean that there will be no voter approval for increases that will inevitably come. It's writing a blank check to the government. The referendum does not specify any projects or how they would be picked. It takes time to responsibly evaluate the value of a water project. All the experts I spoke with said that the only projects that could be fast-tracked fora 2005 decision date would be highly speculative. There is zero protection for Trans-basin diversion (pumping the water back to the front range), mitigation or compensation. All westem slope elected officials are given a clear mandate on water when we sign up for our jobs - don't allow water from the western slope be taken by the front range without mitigation or compensation. As leaders in protecting and preserving our water, I request that your body take a stance against this issue to help our county's citizens understand the true problems with this ballot question. I have provided you with a Resolution for your approval. Thank you for your time and assistance, Arn Menconi Resolution No. A RESOLUTION OF THE TOWN OF VAIL, OPPOSING REFERENDA "A" ON THE 2003 COLORADO ELECTION BALLOT WHEREAS: Colorado's drought, water and economic future are uncertain; WHEREAS: A variety of drought solutions are available to produce results more quickly and at less financial risk than incurring Referenda A's $2 billion dollar debt for risky dam schemes, including; - Balanced agreements between urban water users and agricultural water users to share water in times of severe drought; - Make full and efficient use and re-use of existing water supplies; - Clear dams of sediment which has reduced the storage capacity of many dams; - Invest in and create incentives for water conservation and efficiency for all categories of water users; - Expansion of existing reservoirs. WHEREAS: Local governments across Colorado currently have access to funding to build water storage projects and fund many of the above solutions. Referendum A would create additional state debt (up to 4 billion w/ interest) for large new storage projects but prohibits these funds from being used for smaller projects and conservation efforts; WHEREAS: $2 billion of additional state debt that could add up to $ 4 billion with interest in an unlimited payback time, is not needed, frivolous, will not be utilized by our local government, could cost the Colorado taxpayers much, and drive Colorado further into debt. WHEREAS: Colorado residents, including many in the Town of Vail, place a high value on sound economic policy, healthy communities, and inventive and smart strategies to protect our water supply as an important aspect to our way of life; WHEREAS: Many citizens of Colorado, including the Town of Vail, oppose risky debt incurring and landscape damaging proposals such as Referenda "A"; NOW THEREFORE BE IT RESOLVED: That Board of Trustees from the Town of Vail oppose Referenda "A" on the 2003 Colorado election ballot and recommend a NO vote to the people of Colorado. Signed by : Date: Official seal G~ ~•S• 03 ~.~ b ~~~ Colorado River Return Reconnaissance Study (a.k.a. The Big Straw) Summary June 20, 2003 Purpose: Address physical, logistical, environmental, financial, and institutional aspects of a large- scale water delivery system from the Colorado River near the Utah border to be utilized in the South Platte, Arkansas, and Colorado River basins. Scope of study: This is a very basic, reconnaissance level study. The study involves looking at three different paths for bringing water from the Utah State line to the Front Range: a northern route through Steamboat and past Wolford Mountain reservoir; a central route to Glenwood Springs and then up towards Climax mines where Eagle, Lake and Summit counties come together; and a southern route through Gunnison County past Blue Mesa reservoir. This third option appears to the most impracticable because it only brings water to the Arkansas basin. Though this third option could deliver water to the South Platte with additional costs, it is infeasible to deliver that water to the Colorado River basin and therefore, does not meet one of the Project's stated goals. Additionally, the Study will examine: • the type, size, and location of potential facilities • the environmental and water quality constraints • the major differences between configurations • the preliminary feasibility and identify potential sponsors Work flow chart: Phase I- Project preparation Phase II- Alternative evaluation Phase III- Plan selection, documentation and implementation strategies Potential diversion options- Infiltration gallery, Radial collector, Storage reservoir, River diversion dam The report must be completed by November of 2003. Likely environmental issues: - Wetlands- section 404 permitting - Threatened and endangered species- ESA compliance - Water quality - Fisheries in-stream flows - Cultural and historic resources - Public lands- special use authorizations - Wildlife - Other Water Quality • Water quality significantly differ from high mountain waters and typical front range raw water supplies. • May require advanced treatment for TDS, Sulfate, Silica, and others contaminants. • Nanofiltration or reverse osmosis could be used to treat water quality at the source. • The consultants indicated that the water will most likely have to be treated before pumping for several reasons. Economic and Financial Issues: Can the direct beneficiaries finance this project without undue burden? Yes -rate/tap increases are reasonable to cover costs. No- Can we phase re-engineer, shift capital burden, enhance revenue? Re-examine financial feasibility Can State play a role in facilitating project financing? a~~e County Master P an ~,~Pdate ,. Vail Town Council Work Session 8-5-03 Town Council Work Sessions July 22, 2003 -Eagle Town Council, 7:OOPM August 4, 2003 -Red Cliff Town Council, 7:OOPM August 5, 2003 -Vail Town Council, 6:OOPM August 6, 2003 -Minturn Town Council, 5:45PM August 12, 2003 -Avon Town Council, 3-5:30PM August 26, 2003 -Gypsum Town Council, 7:OOPM September 9, 2003 -Basalt Town Council, Evening First Round of Public Meetings September 11, 2003 -West County Community Meeting, Gypsum Town Hall, 6:30 - 8:30PM ????? ??, 2003 -Central County Community Meeting, Beny Creek Middle School, 6:30 - 8:30PM September 18, 2003 -East County Community Meeting, Minturn Town Hall, 6:30 - 8:30PM September 25, 2003 -North County Community Meeting, McCoy Community Center, 6:30 - 8:30PM October 2, 2003 -Southern County Community Meeting, EI Jebel Community Center, 6:30 - 8:30PM Highlighted areas indicate that date, time and/or location of meeting is NOT confirmed at this time. ~~ ~l e ~~ Proposed Schedule ~oun~y ast~c- ~'~an ~c~a~~ v # Task ~ C n' . ~ _A ' ' N ~ 3 L d d Q ii ~ O L d > z L U o = `6 R 3 ~ ~i v ~ C ~ . ~ 1 Preplanning ~ ' 1.1 Project Team Create a Technical Advisory Committee Contact each potential member Layout the roles and responsibilities of each party involved in process (TAC, ECPC, RFRPC, BOCC) 1.2 Scope Develop a detailed work program Determine the duration of each task Get commitment from Task Manager for each task 1.3 Schedule Determine an initial schedule Get commitment from Task Manager on schedule 1.4 Budget Determine the necessary budget for project Get approval for a proposed budget 1.5 ~AC Meeting #1 - _ Hold a kick off meeting Identify Key Issues 1.6 Goals and Objectives of Update Draft Goals and Objectives of Process Define Evaluation Measures 2 Research 2.1 Data Collection Identify and obtain copies of all relevant documents ~ investigate Land Based Data Investigate Socio-Economic Data Investigate Resource Data Investigate Facilities and Services Data Identify areas of missing information 2.2 Dissemination of Data Create user-friendly charts, graphs and maps of all information Develop a website for the project Ensure the website includes the most up-to- date information Contact the media regarding the data 2.3 TAC Meeting #2 - _ Hold a TAC Meeting Review data, survey results, and open house materials 2.4 ''1V~8 Prepare materials for meetings Advertise for meetings Hold East County Community Meeting Hold Central County Community Meeting Hold West County Community Meeting Hold North County Community Meeting Hold South County Community Meeting Hold a series of interviews with various stakeholders (Metro Dist., Towns, Chamber, etc.) 2.5 Site Visits Visit HWY 24 Visit Vail to Avon area Visit Avon to Wolcott area Visit Wolcott to Dotsero area Visit HWY 131 Visit Colorado River Road Visit Cottonwood Pass to EI Jebel Visit Basalt and Fryingpan Rd. 2.6 Summary Report (Data Analysis) Summarize research { I Summarize survey Summarize community meetings i Identify the opportunities and constraints ~ Make copies of summary report 2.7 TAC Meeting #3 Hold a TAC meeting Review summary report and begin definition of alternatives r L d d L Q~ ~ L ~ ~ ~ ~ ._ ~ ~ ~ ~ E E m ~ s ~ L # Task 1° ~ L a ~ ~a ~ ~ ~+ ~ ~ ~ ~ ~ Q m O ~ o ~ o U m ~ ~ ~ m L ~ ~ L a T ~ ~ !~_; <n z o ~ a 3 Alternatives Development 3.1 Alternatives 3.2 3.3 Develop a series of alternatives Create a series of maps to reflect each alternative Create a series of sketches to illustrate each alternative Illustrate the fiscal, social, environmental impacts of the various alternatives Hold a TAC meeting Review alternatives and open house materials Advertise for Meetings Hold East County Community Meeting Hold Central County Community Meeting Hold West County Community Meeting Hold North County Community Meeting Hold South County Community Meeting a Draft Plan 4.1 Generalized Vision Plan for Eagle Count Create one final vision Illustrate the fiscal, social, environment. impacts of the final vision 4.2 Staff Draft Review the existing goals, objectives, p and/or action items to review their con: with the vision of the county Write draft Develop graphics including maps, chart sketches, etc. Create a layout that is user-friendly and exciting 4.3 ~AC Meeting #5 :~ Hold a TAC meeting Review draft 4.4 Planning Cemm!s~ion Draft Edit Make copies Put draft out on referral 4.5 I~iublic Hea st) ,~ Public Meeting with the RFRPC Public Meeting with the ECPC 5 Final Plan Adoption 5.1 Final Document Make changes to document based on feedback Make copies 5.2 Present the final document to the RFRF recommendation Present the final document to the ECPC adoption • ~ ..y. S> ^~' • ~, ~ ~. -, j / p f s ~ Technical Adviso Committee Area of Emphasis/ Department First Name Last Name Project Management Rebecca __ Leonard Planning Bob Narracci Planning/Building Ross Easterling Administration Becky Gadell Engineering Peter __ Fralick Environmental Health _ Ray _ Merry _ Health & Human Services Kathleen Forinash Emergency Management Barry Smith __ GIS John _ Staight _ Housing _ _ _. KT Gazunis ECO Transit _ David Johnson __ RFTA Mike Davis-- Vail Valley Chamber and Tourism Bureau Robin Litt Basalt Chamber of Commerce Joe Loschiavo Eagle Valley Chamber of Commerce Tim Cochran ECPC _ Evelyn Pinney-Levine RFRPC Bob Schultz „Eagle Valley Special Districts Ken Marchetti Roaring Fork Valley Special Districts __ Lee .Leavenworth Eagle Valley Land Trust Cindy _ _ __ Cohagen Roaring Fork Conservancy Jeanne Beaudry USFS Cathy Kahlow _ BLM Greg Goodenow DOW __ Pat Tucker RE-50J School District ___ Karen Strakbein RE 1 School District Fred Wall Ranching Community Bud Gates Ranchin Communit Ben Wurtsmith Eagle County Planning Commission First Name Last Name Patricia John Dan Barbara Ken Roaring Fork Regional Planning Commission First Name ' Last Name __ Hammon Bob ...King Temple Seibel ' Kim Brundin Mary Neubecker Wendy Jo Haskins Evelyn Pinney-Levine Kerry Wallace • Adam Palmer Michael McClinton Jim Anthony Robert..... Schultz Glassier Johnson Holley. Wahlstro m Vagnuer Adams MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Acco',unfants and Consultants ~', WEB SITE: W W W. MCMAHANCPA. COM SUITE 222~AVON CENT TELEPHONE: (970) 845-8800 100 WEST BEAVER CR BLVD. - FACSIMILE: (970) 845-085 I P.O. Box 5850 AVON, O 8 I B2O E-MAIL.' MCMAHAN QOMCMAHANCPA.COM To the Mayor, Members of Town Council, and Town Administration Town of Vail, Colorado We have recently compl~ted the audit of the Town of Vail, Colorado (the'Town")for the year ended December 31, 2002. This letter, which is presented to assist you in your review of the Town's audited financial statements, pro~ides an overview of the year and discusses some of the Town's recent financial trends. SUMMARY of AVAI The following analysis resulted in a net decre 2001 base: Fund equity -General Fi iess.• Reserved fund bale Fund equity -All Special Fund equity -Debt Semi less: Reserved fund bale Fund equity - Internal Se less: Contributed capital iess.• Net book value of f Total Available Resoi Actual summarized General Fund ~ Special Revenue funds: Capital Projects Fund RETT Fund Marketing Fund Debt Service Fund Internal Service funds: Heavy Equipment Fund Health Insurance Fund Dispatch Services Fund TOTALS ~ D. Jeny McM~-~, C.P_A. Paul J. Backes, C.PA. RESOURCES ~e Town's expendable resources for the past two years shows that 2002 in available resources of approximately $1,418,000, or almost 6.5% of the :venue funds Fund e ~ funds i assets Net Change: Balance Balance Increase °~ Dec. 31, 2002 Dec. 31, 2001 (Decrease) Change $ 8,784,044 6,289,386 2,494,658 40% (1,523,923) (1,459,792) (64,131) 4% 14,065,221 16,577,221 (2,512,000) -15% 58,940 131,948 (73,008) -55% (58,940) (131,948) 73,008 -55% 4,795,840 4,398,814 397,026 9% (2,218,035) (1,176,679) (1,041,356) 88% 3,384,791 (2,693,090) (691,701) 26% 20,518,356 21,935,860 (1,417,504) -6.46% for 2002, by fund, are as follows: ginning Other Net Fund Financing Increase glances Revenues Expenditures Sources (Uses) (Decrease) 1,289,386 22,724,080 20,229,422 - 2,494,658 0,020,101 7,181,447 6,833,757 6,522,669 3,632,621 5,070,975 34,451 314,567 310,692 131,948 2,322 2,355,034 2,723,332 1,699,418 1,999,756 549,502 1,618,358 1,421,682 50,699 1,382,774 1,352,256 6,220,6 0 ,555,587 39,573,574 Ending Fund Balances 8,784,044 (1,425,211) (1,077,521) 8,942,580 - (1,438,354) 5,084,315 - 3,875 38,326 2,279,704 (73,008) 58,940 (593,322) (893,660) 1,829,672 10,897 207,573 757,075 11,239 41,757 8,942) 283,307 7 4,680 52 486,01 services for local govemmerrts throughout Colorado Daniel R. Cudahy, C_P.A. Michael N. Jenkins, C.A., C.P.A. Members: American Inei~itute o£ Certified Public Aceountants/Colorado Society o£ Certified Public Accountants National and Colorado Government Finance Officers Aesociation/Colorado Municipal League To the Mayor, Members of Town Council, and Town Administratbn Town of Vail, Cobrado Page 2 of 4 General Fund Revenues F~cpenditures Revenues Over Expenditures Fund Balances -January 1 Fund Balances -December 31 General Fund - 2002 Variance: Budget Favorable As Amended Actual (Unfavorable) 21,742,548 22,724,080 981,532 21,147,608 20,229,422 918,186 594,940 2,494,658 1,899,718 6,289,386 6,289,386 - 6, 884, 326 8, 784, 044 1, 899, 718 As shown on page 28 of the 2002 audited financial statements, total General Fund revenues were $981,532 higher than anticipated in the amended budget, and $1.8 million (9%) higher than 2001 results. Significant budget variances were realized during 2002 for the following revenue categories: Variance Favorable Line Item Unfavorable Taxes 576,343 Comments General sales tax and resort fees exceeded budget by $389,000 and $199,000 respectively due to conservative budgeting. Licenses and permits 207,373 Construction fees were $204,000 higher than expected, due to increased construction activity. Intergovernmental revenues (98,905) Pass-through State grant of $75,000 had been budgeted, but was not received in 2002. Charges for services 279,965 Daily parking fees exceeded budget by $249,000 due to convservative budgeting, and a change in the parking program for the 2002/2003 ski season. The proportion. of General Fund revenue attributable to taxes has remained relatively consistent in 2001 and 2002 at approximately 70%. No material changes were noted in the proportion of other revenues realized during 2002. Page 29 of the 2002 audited financial statements indicates that aggregate General Fund expenditures were $918,000 lower than projected in the amended budget for the year, but $868,000 higher than 2001 results. Positive budget variances were realized in almost every department for 2002, due to the combined impact of conservative budgeting and unfilled staffing vacancies. As of December 31, 2002, the Town's General Fund balance equaled approximately 43% of General Fund expenditures for the 2002 fiscal year, which is an approximately 11-percentage point increase over the preceding year. Accumulating reserves can help fund future commitments, should reduced current revenues be realized due to unforeseen economic conditions. To the Mayor, Members of Town Council, and Town Administration Town of Vail, Cobrado Page 3 of 4 Special Revenue Funds All Special Revenue Funds - 2002 Revenues Expenditures Revenues (Under) Expenditures Transfers in (out) -net (Decrease) in Fund Balance Fund Balances -January 1 Fund Balances -December 31 Variance Budget Favorable Amended Actual (Unfavorable) 11,627,600 11,128,635 (498,965) 21,950,801 12,215,424 9,735,377 (10,323,201) (1,086,789) 9,236,412 (1,678,929) (1,425,211) 253,718 (12,002,130) (2,512,000) 9,490,130 16,577,221 16,577,221 - 4,575,091 14,065,221 9,490,130 The Town has three special revenue funds (Capital Projects Fund, Real Estate Transfer Tax Fund, and Vail Marketing Fund) which are used to account for legally "earmarked" revenues. Budget and actual comparisons for these funds are presented on pages 32, 34, and 36 (respectively) of the 2002 report. Total 2002 revenues in the Specal Revenue funds were $499,000 less than projected in the amended budget and almost $2.1 million (16%) less than the preceding year. Aggregate expenditures for the Special Revenue funds were $9.7 million lower than budgeted, but approximately $1.4 million higher than for 2001. The more significant 2002 budget variances are discussed below: Variance Favorable Line Item . (Unfavorable) Revenues: Taxes $ 740,132 Intergovernmental revenues (688,304) Miscellaneous revenues (558,130) )~penditures: Capital projects 9,701,045 Comments Real estate transfer taxes and sales tax revenue were $443,000 and $297,000, respectively, higher than expected, due to conservative budgeting. Federal bus grant of $692,000 budgeted to be received in 2002 will not be received until the buses are delivered in a future year. The budget anticipated resale fees of $1 million related to the Town's "buydown" of housing units. The units were not sold, however, neither were they purchased in 2002, as budgeted (see below). Total expenditures for this line item within the Capital Projects Fund were $8.1 million lower than budgeted, due to delays in the Donovan Park Pavilion project ($2.1 million below budget), deferral of the Town's "buydown" of housing units ($1.1 million less than budgeted) and delays in the Town Shop Improvments project ($553,000 below budget). In the RETT Fund, total capital projects costs were $1.6 million lower than budgeted, primarily due to the deferral of land acquisition ($500,000 below budget), and delays in the Donavan Park -Lower Bench Project ($315,000 below budget). To the Mayor, Members of Town Council, and Town Administration Town of Vail, Cobrado Page 4 of 4 Debt Service Fund As shown on page 39 of the 2002 audited finanaal statements, the Debt Service Fund ended the fiscal year $80,000 behind projections, primarily because the actual transfer from the Capital Projects Fund required to maintain the Town's bond reserves and debt service payments was lower than expected in the amended budget. Internal Service Funds All Internal Service Funds - 2002 Revenues Expenses Operating Income Non-Operating Revenues Operating Transfer (out) Net (Loss) -Budget ("Non-GAAP") Basis Depreciation Assets purchased Net (Loss) - GAAP Basis Variance: Budget Favorable (As Amended) Actual ~Unfavorablel $ 4,695,127 4,700,550 5,423 4,964,761 4,410,060 554,701 (269,634) 290,490 560,124 109,450 78,814 (30,636) 650,000 (650,000) - (810,184) (280,696) 529,488 (670,313) 306,679 (644,330) The Town has three internal service funds (Heavy Equipment Fund, Health Insurance Fund, and Dispatch Services Fund) which are used to account for the provision of goods and services between Town departments and other governments on a cost recovery basis. Budget and actual comparisons for these funds are presented on pages 43, 44, and 45 (respectively) of the 2002 audited finanaal statements. Total 2002 revenues in the Town's Internal Service funds were $5,000 less than projected in the amended budget, primarily because a negative budget variance attributable to lower than expected insurance premiums ($25,000 less than budgeted) were offset by a positive variance in the usage charges to Town departments for heavy equipment ($30,000 higher than expected). However, aggregate expenses for the Internal Service funds were $555,000 lower than budgeted. Conservative budgeting of health daims ($345,000 better than budget) and vehicle upkeep costs ($193,000 less than budgeted) were the significant contributors to the positive variance in expenses. This report is intended solely for the information and use of Town Council, Town administration, and others designated by the Town. We appreciate this opportunity to be of service to the Town of Vail, and will be pleased to discuss these matters further with you. J`tL/u'I a~no~ ~~~ ~L~. McMahan and Associates, L.L.C. March 21, 2003 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants 1 1 1 1 1 1 1 TOWN OF VAIL, COLORADO Financial Statements For the fiscal year ended December 31, 2002 Town of Vail, Colorado Financial Statements December 31, 2002 TABLE OF CONTENTS FINANCIAL SECTION: Independent Auditor's Report .General Purpose Financial Statements: Combined Balance Sheet -All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types and Discretely Presented Component Units Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual 1 -General, Special Revenue and Debt Service Funds Combined Statement of Revenues, Expenses and Changes in Fund Equity -All Proprietary Fund Types and Similar Trust Funds ' Combined Statement of Cash Flows -All Proprietary Fund Types Notes to-the Financial Statements Combining and Individual Fund Financial Statements: ' General Fund: Statement of Revenues -Budget (GAAP Basis) and Actual Statement of Expenditures and Other Financing Uses - Budget (GAAP Basis) and Actual Special Revenue Funds: ' Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Capital Projects Fund ' - Statement of Revenues, Expenditures and Other Financing Sources (Uses) -Budget (GAAP Basis) and Actual Capital Projects Fund -Schedule of Project Expenditures -Budget and Actual Comparison Real Estate Transfer Tax Fund -Statement of Revenues and Expenditures -Budget (GAAP Basis) and Actual Real Estate Transfer Tax Fund -Schedule of Project Expenditures -Budget and Actual Comparison Vail Marketing Fund -Statement of Revenues and Expenditures -Budget (GAAP Basis) and Actual i Paae 1 2-3 4 5 6 7 8-27 28 29 30 31 32 33 34 35 36 ii Town of Vail, Colorado Financial Statements December 31, 2002 TABLE OF CONTENTS (Continued) FINANCIAL SECTION (continuedl• Combining and Individual Fund Financial Statements (continued): Debt Service Fund: Comparative Balance Sheet Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Statement of Revenues, Expenditures and Other Financing Sources (Uses) - Budget (GAAP Basis and Actual) Internal Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows Heavy Equipment Fund -Statement of Revenues and Expenses - Budget (Non-GAAP Basis) and Actual With a Reconciliation to GAAP Basis Health Insurance Fund - Statement of Revenues and Expenses -Budget (GAAP Basis) and Actual Dispatch Services Fund -Statement of Revenues and Expenses -Budget (Non-GAAP Basis) and Actual With a Reconciliation to GAAP Basis Trust and Agency Funds: Combining Balance Sheet Pension Trust Fund -Comparative Statement of Revenues, Expenses and Changes in Fund Balance Expendable Trust Fund -Deferred Compensation Fund -Comparative Statement of Revenues, Expenditures and Changes in Fund Balance SUPPLEMENTAL INFORMATION: General Fixed Assets Account Group: Schedule of General Fixed Assets - By Function General Long-Term Debt Account Group: Comparative Schedule of General Long-Term Debt Paae 37 38 39 40 41 42 43 44 45 46 47 48 49. 50 1 Town of Vail, Colorado Financial Statements December 31, 2002 TABLE OF CONTENTS (Continued) SUPPLEMENTAL INFORMATION (continued)• General Long-Term Debt Account Group (continued): Schedule of Future Debt Service Requirements - Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A Schedule of Future Debt Service Requirements - Taxable Sales Tax Revenue Refunding Bonds, Series 19988 Schedule of Future Debt Service Requirements - General Obligation Refunding Bonds, Series 2002A Schedule of Future Debt Service Requirements - Sales Tax Revenue Refunding Bonds, Series 2002B Local Highway Finance Report UNDERTAKING to PROVIDE CONTINUING DISCLOSURE Table I - Debt Service Coverage Table Ilf - History of Town 4% Sales Tax Receipts Table IV - Monthly Comparison of Collections of Sales Tax Table V -Sales Tax Collections by Principal Sales Tax Generators Table VI - Capital Projects Fund 2002 Actual/ Projected 2003 - 2006 Table XIX - History of General Fund Revenues, Expenditures and Changes in Fund Balance Table XX - General Fund 2002 and 2003 Budget Summary and Actual Comparison Table XXI - Outstanding Revenue Obligations Paae 51 52 53 54 55-56 57 57 57 58 58 59 60 60 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants WEB SITE: WWW.MCMAHANC PA.COM SUITE 222/AVON CENTER ~ TELEPHONE: (970) 845-8800 100 WEST BEAVER CREEK BLVD. FACSIMILE: (970) 845-085 1 P.O. BOX 5850 AVON, CO 8 I B2O E-MAIL: MCMAHAN~MCMAHANC PA.COM ' INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council ' Town of Vail Vail, Colorado ' We have audited the accompanying general purpose financial statements of the Town of Vail, Colorado, and the combining, individual fund and account group financial statements of the Town of Vail, Colorado as of and for the year ended December 31, 2002, as listed in the table of contents. These financial statements are the responsibility of the Town of Vail, Colorado's management. Our responsibility is to ' express an opinion on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and Government ' Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Town of Vail, Colorado as of December 31, 2002, and the results of its operations and its cash flows of its proprietary fund types for the year then ended, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the combining, individual fund, and ' account group financial statements referred to above present fairly, in alt material respects, the financial position of each of the individual funds and account groups of the Town of Vail, Colorado at December 31, 2002 and the results of operations of such funds and cash flows of its individual proprietary funds for the year then ended, in conformity with U.S. generally accepted accounting principles. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining, individual fund, and account group financial I statements. The accompanying financial information presented as supplemental information found on pages 49 - 56 is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the Town of Vail, Colorado. Such information has been subjected to the auditing procedures applied in the audit of the general purpose, combining, and individual fund and account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups taken as a whole. The tables included for the undertaking to provide continuing disclosures found on pages 57 - 60 have ' not been audited by us, and accordingly, we do not express an opinion thereon. 1 McMahan and Associates, L.L.C. March 21, 2003 ' Performing services for local governments throughout Colorado D. Jerry McMahan, C.P.A. Paul J. Backes, C.P.A. Daniel R. Cudahy, C.P.A. Michael N. Jenkins, C.A., C.P.A. Members: l~meriean Institute o~ Certi~iecl Public 1~eeountants~Coloraclo Society of Certi{iecl Public l~eeountanta National and Colorado Government Finance ~lficers E~saociation/C'olorado Municipal ),ea~ue 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 General Purpose Financial Statements The basic financial statements provide a summary overview of the financial position of all funds and account groups and operating results of all funds. They also serve as an introduction to the more detailed statements and schedules that follow. Town of Vail, Colorado Combined Balance Sheet Ail Fund Types and Account Groups December 31, 2002 (With Comparative Totals for 2001) P i Totals (Memorandum Only) ropr etary Fiduciary _ Governmental Fund Types Fund Type Fund Type Account Groups Special Debt l t l General General Reporting Entity rr ema Trust ~ Fized Long-Terre Primary Component General Revenue Servlce Service Agency Assets Debt Government Unit 2002 2001 Assets: , Cash 13,445 Equity In pooled cash and investments 8,973,107 12,515,490 59,165 1 633 418 13,445 446,996 460,441 251,732 Investments -Employee retirement plans - - , , 23,181,180 23,181,180 23,813,859 Receivables: - - 26,751,078 - - 26,751,078 - 26,751,078 29,319,355 Taxes and fees 690,714 2,268,304 - Othergovemments - 53,068 - - 2,959,018 260,303 3,219,321 3,133,831 Special assessments _ - - 53,068 - 53,068 1,067,017 Property taxes assessed 2,673,789 _ _ _ _ - - - - - 19,795 Other, net of allowance for _ - - 2,673,789 - 2,673,789 2,646,694 uncollectibleaccounts 268,492 116,195 - 9 088 Loans to participants - - , 394,775 394,775 364,088 Inventory - 193 618 213,848 213,848 213,848 199,747 Prepaid expenses 551,557 - - , 61 865 - 193,616 - 193,618 179,134 Properly, plant and equipment, net - - , 613,422 30,406 643,828 483 094 Amount to be provided for payment - 3,384,791 - 83,149,493 - 86,534,284 - 86,534,284 , 79,231,528 of general long-term debt - - Amount available in Debt Service Fund - _ - 19,070,666 19,070,666 - 19,070,666 20,057,537 for repayment of general long-term debt - - - - 58,940 58,940 - 58,940 131,948 Total Assets 13,172,104 14,953,057 59,165 5 282 780 26 964 926 83 149 493 1 , , , , , , 9,129,606 162,711,131 737,705 163,448,836 160,899,359 (continued) The accompanying notes are an integral part of these financial statements. 2 s r ~^ir ter ~ . ~ r it r ~n r ^r ~ r ~ ~ ~ r Town of Vail, Colorado. Combined Balance Sheet All Fund Types and Account Groups December 31, 2002 (With Comparative Totals for 2001) (Continued) Totals (Memorandum Only) Proprietary Fiduciary Governmental Fund Ty pes Fund Typo Fund Type _ Account Groups Special Debt Internal Trust 8 General General Fixed Long-Term primary Component Reporting Entity Llabilities: General Revenue Service Service Agency Assets Debt Government Unit 2002 2001 Accounts/vouchers payable 450,004 821,256 225 315 367 - Accrued wages and benefits 597,157 8,554 - , 171 573 - 1,586,852 26,835 1,613,687 1,753,682 Retalnage payable 58,026 , 777,284 - 777,284 670,455 Deferred revenue P3P 486 _ - - 58,026 - 58,026 111,873 Deferred revenue -Property taxes 2,673,789 - - - - 232,286 - 232,286 1,225,770 Deposits payable 434,824 _ - 2,673,789 - 2,673,789 2,646,694 Leases payable _ _ - 434,824 - 434,824 429,277 General obligation bonds payable - - - - - 144,854 144,854 - 144,854 282,887 Sales tax revenue bonds payable - - - - - 3,205,000 3,205,000 - 3,205,000 4,200,000 Accrued vacation payable - - - - 15,065,000 15,065,000 - 15,065,000 15,065,000' Total Llabilities _ 4,388,060 687,836 225 486 940 714,752 714,752 714,752 641,598 , - 19,129,606_ 24,892,667 26,835 24,919,502 27,027,236 Fund Equity: Contributed capital - - - 2 218 035 - Investment in general fixed assets - - , , ~ 2,218,035 - 2,218,035 1,176,679 Retained earnings: - - - 83,149,493 83,149,493 - 83,149,493 76,538,438 Reserved for health insurance - Reserved for subsequent years' - - 757,075 - 757,075 - 757,075 549,502 expenditures _ _ Unreserved - - _ - 1 820 730 - - - - - - 187,263 Fund balances: , , _ - 1,820,730 - 1,820,730 2,485,370 Reserved for Symposium 10,992 - - .Reserved for employee retirement plans - - - 10,992 - 10,992 10 992 Reserved for retirement of bonded debt - - - 58 940 - - 26,964,926 26,964,926 - 26,964,926 , 29,519,102 Reserved for prepaid expenses 538,931 - , - - 58,940 58,940 131,948 Reservedforemergencies 974,000 - - - - - - 536,931 30,406 569,337 454,660 Reserved for capital reserve - - - 974,000 54,500 1,028,500 1,108,000 Designated for housing loan program 200,000 - - 317,000 317,000 317,000 Designated for police seizures 99,780 - _ - 200,000 - 200,000 200,000 Designated for subsequent years' _ 88,780 _ gg,7gp 81,787 expenditures - 2,259,948 - Undesignated 6 960,341 11,805,273 2,259,948 2,259,948 6,755,625- Total Fund Equity 8.784,044 14,065,221 58,940 4 795 840 26 964 926 83 149 493 18,765,614 308,964 19,074,578 12~355~57 , , . , . , 137.818,464 710,870 138.529,334 133,872,123 Total Liabilities and Fund Equity 13,172,104 14,953,057 5,165 5,262,760 26,964,926 83,149,493 19.129,606 162,711,131 737.705 163,448,836 160,899,359 The accompanying notes are an Integral part of these financial statements. 3 Town of Vail, Colorado Combined Statement of Revenues, Expenditures and Changes In Fund Balances All Governmental Types and Discretely Presented Component Units For the Year Ended December 31, 2002 (With Comparative Totals for 2001) Totals (Memorandum Only) Fiduciary _ Governmental Fund Types Fund Type Reporting Entity Special Debt Expendable Primary Component Revenues: General Revenue Service Trust Government Unit 2002 2001 Taxes Licenses and permits 16,100,370 932 773 7,870,067 318 946 - - 23,970,437 1,514,457 25,484,894 25,738,898 Intergovernmental revenues , 1 349 364 , 1 022 321 - - 1,251,719 295,158 1,546,877 1,259,454 Charges for services , , 162 3 454 , , - - - 2,371,685 - 2,371,685 1,426,224 Fines and forfeits , , 226 543 12 340 - 3,162,454 3,162,454 2,729,847 Interest Rents , 165,088 , 303,841 - 2,322 (226,025) 238,883 245,226 - 6,125 238,883 251,351 286,063 881 953 Miscellaneous revenues 507,211 280,277 308,117 1,293,003 - 265 800 815,328 1 839 080 - 815,328 , 803,861 Total Revenues 22,724,080 11,128,635 2,322 , 39,775 , , 33,894,812 - 1,815,740 1,839,080 35,710,552 2,717,502 35,843,802 Expenditures: Operating: General government Public safety 4,586,115 - - 441,733 5,027,848 - 5,027,848 4,722,225 Public works and transportation 5,415,008 7 756 877 - - - - 5,415,008 - 5,415,008 5,079,931 Culture and recreation , , 953 019 759 336 - - 7,756,877 - 7,756,877 7,529,4113 Economic development Capital projects , 1,518,403 , 310,692 - - - 1,712,355 1,829,095 - 1,522,084 1,712,355 3,351,179 1,603,405 3,387,131 Debt service: - 11,145,396 - - 11,145,396 - 11,145,396 9,727,737 Principal retirement Interest and fiscal charges - - 1,310,000 - 1,310,000 1,310,000 1,235,000 Refunding bonds issuance costs - - 840,541 - 840,541 840,541 1,084,444 Total Expenditures 20,229,422 12,215,424 204,493 2,355,034 441,733 204,493 35,241,613 - 1,522,084 204,493 36,763,697 34,369,291 Excess (Deficiency) of Revenues Over Expenditures 2,494,658 (1,086,789) (2,352,712) (401,958) (1,346,801) 293,656 (1,053,145) 1,474,511 Other Financing Sources (Uses): Operating transfers in Operating transfers (out) - 650,000 2,075,211 - 2,725,211 - 2,725,211 2,579,958 Proceeds of refunding bonds - (2,075,211) - - (2,075,211) - (2,075,211) (2,579,958) Payments to refunded bonds escrow - - 8,970,093 - 8,970,093 - 8,970,093 Total Other Financing Sources (Uses) - - (1 425 211) (8,765,600) 2 279 704 - (8,765,600) 854 - (8,765,600) , , , , - ,493 - 854,493 - Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) 2,494,658 (2,512,000) (73,008) (401,958) (492,308) 293,656 (198,652) 1,474,511 Fund Balances -January 1 6,289,386 16,577,221 131,948 2,721,201 25,719,756 417,214 26,136,970 24,662,459 Fund Balances -December 31 8,784,044 14,065,221 58,940 2,319,243 25,227,448 710,870 25,938,318 26,136,970 The accompanying notes are an integral part of these financial statements. 4 ^~ . ~ ~ ~ . +~^~ ~r ~ ~ . r tr . ~r ~ ~ . ~ Town of Vail, Colorado Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual General, Special Revenue and Debt Service Funds For the Year Ended December 31, 2002 General Fund Special Revenue Funds Debt Service Fund Amended Variance Favorable Amended Variance Favorable Amended Variance Favorable Revenues: Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Taxes Licenses and permits 15,524,027 16,100,370 576,343 7,129,935 7,870,067 740,132 Intergovernmental revenues 725,400 1,448,269 932,773 1,349,364 207,373 (98,905) 466,700 1,710,625 318,946 1,022,321 (147,754) (688 304) Charges for services 2,882,489 3,162,454 279,985 - , Fines and forfeitures 194,350 226,543 32,193 12,340 12 340 _ _ _ Interest earnings Rents 185,000 165,088 (19,912) 190,000 , 303,841 113,841 - 2,322 2,322 Miscellaneous revenues 529,968 253,045 507,211 280,277 (22,757) 27,232 266,867 1,851,133 308,117 1,293,003 41,250 (558 130) Total Revenues 21,742,548 22,724,080 981,532 11,627,600 11,128,635 , (498,965) - 2,322 2,322 Expenditures: Operating: General government 5,012,633 4,586,115 428,518 - - Public safety 5,626,754 5,415,008 211,746 - _ _ _ Public works and transportation 7,978,555 7,756,877 221,678 - _ _ _ Culture and recreation Economic development 992,903 953,019 39,884 767,660 759,336 8,324 _ _ _ Capital projects 1,536,763 1,518,403 18,360 338,700 310,692 26,008 Debt service: - - - 20,846,441 11,145,396 9,701,045 - - Principal retirement - - Interest and fiscal charges - - - - - 1,310,000 1,310,000 Refunding bonds issuance costs - - - - - 1,012,244 840,541 171,703 Total Expenditures 21,147,608 20,229,422 918,186 21,950,801 12,215,424 9,735,377 _ 2,322,244 204,493 2,355,034 (204,493) (32,790) Excess (Deficiency) of Revenues . Over Expenditures 594,940 2,494,658 1,899,718 (10,323,201) (1,086,789 9,236,412 (2,322,244) (2,352,712) (30,4682 Other Financing Sources (Uses): Operating transfers in Operating transfers (out) - - - - 650,000 650,000 - 2,328,929 2,075,211 (253,718) Proceeds of refunding bonds - - - - (2,328,929) (2,075,211) 253,718 Payments to refunded bonds escrow - - - - - 8,970,093 8,970,093 Total Other Financing Sources (Uses) - - - - (1,678,929) (1,425,211 253,718 2,328,929 (8,765,600) 2,279,704 (8,765,600) (49,225) Excess (Defciency) of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) 594,940 2,494,658 1,899,718 (12,002,130) (2,512,000) 9,490,130 6,685 (73,008) (79,893) Fund Balances -January 1 6,289,386 8,289,386 - 16,577,221 16,577,221 - 131,948 131,948 - Fund Balances -December 31 6,884,328 8,784,044 1,899,718 4,575,091 14,065,221 9,490,130 138,633 58,940 (79,693) The accompanying notes are an integral part of these financial statements. 5 Town of Vail, Colorado ' Combined Statement of Revenues, Expenses and Changes in Fund Equity All Proprietary Fund Types and Similar Trust Funds For the Year Ended December 31, 2002 ' (With Comparative Totals for 2001) Proprietary Fiduciary Fund Type Fund Type Internal Service Pension Total Operating Revenues: Intergovernmental revenues Charges for services Insurance reimbursements Other Net (loss) on plan investments ' Contributions Total Operating Revenues ' Operating Expenses: Administrative Operations Depreciation ' Claims, premiums, and dividends Total Operating Expenses ' Operating (Loss) Non-Operating Revenues: 1 Investment income Gain on disposition of equipment Total Non-Operating Revenues Income (Loss) before Operating Transfers Operating Transfers: Operating transfer (out) Net Income (Loss) Funds Trust 2002 2001 285,640 - 285,640. 285,640 4,382,976 - 4,382,976 4,101,347 31,059 - - 30,220 875 - 875 1,172 - (2,219,918) (2,219,918) (1,499,936) 1,783,082 1,783,082 1,699,225 4,700,550 (436,836) 4,232,655 4,617,668 - 67,952 67,952 65,450 2,681,699 1,647,430 4,329,129 4,315,208 670,313 - 670,313 626,163 1,421,682 - 1,421,682 1,350,014 4,773,694 1,715,382 6,489,076 6,356,835 (73,144) (2,152,218) (2,256,421) (1,739,167) 41,453 - 41,453 91,264 37,361 - 37,361 630,988 78,814 - 78,814 722,252 5,670 (2,152,218) (2,977,607) (1,016,915) (650,000) - (650,000) - (644,330) (2,152,218) (2,827,607) (1,016,915) ' Retained Earnings/ Fund Balances -January 1 3,222,135 26,797,901 30,020,036 31,036,951 Retained Earnings/ Fund Balances -December 31 2,577,805 24,645,683 27,192,429 30,020,036 j The accompanying notes are an integral part of these financial statements. 6 Town of Vail; Colorado ' Combined Statement of Cash Flows -All Proprietary Fund Types For the Year Ended December 31, 2002 (With Comparative Totals for 2001) Cash Flows From Operating Activities: ' Cash from other funds Other receipts of cash Cash paid for goods and services Cash paid to employees Net Cash Provided by Operating Activities Cash Flows from Non-Capital Financing Activities: Cash (to) other funds Net Cash (Used) by Non-Capital Financing Activities I! ii Cash Flows From Capital and Related Financing Activities: Sale of fixed assets Purchase of fixed assets Net Cash (Used) by Capital and Related Financing Activities Cash Flows From Investing Activities: Interest received Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents -January 1 Cash and Cash Equivalents -December 31 Reconciliation of Operating (Loss) to Net Cash Provided by Operating Activities: Operating (loss) Adjustments: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accrued wages and benefits Total Adjustments Net Cash Provided (Used) by Operating Activities Non-Cash Investing Activities Acquisition of equipment contributed by another fund Totals 2002 4,200,231 495,169 (2, 990,183) (1,330,209) 375,008 (650,000) (650,000) 23,381 (306,679) (283,298) 2001 3,698,089 908,960 (2,410,590) (1,245,969) 950,490 211, 666 (837,949) (626,283) 41,453 91,264 41,453 91,264 (516,837) 415,471 2,150, 255 1, 734, 784 1,633,418 2,150,255 (73,144) (229,829) 670, 313 (5,149) (14,484) (33,431) (202,970) 33,873 448,152 626,163 188,671 (10,164) 118,440 256,588 621 1,180,319 375, 008 950, 490 1,055,336 71,859 The accompanying notes are an integral part of these financial statements. 7 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 ' 1. ,Summary of Significant Accounting Policies ' The financial statements of the Town of Vail, Colorado (the 'Town") have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") as applied to government units. The Governmental Accounting Standards Board ("GASB") is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more 1 significant of the government's accounting policies are described below. A. Reporting Entity The Town was incorporated in 1972, under the provisions of Article XX of the Colorado Constitution and Municipal Home Rule Act of 1971. The Town operates under a Council- . Manager form of government. ' As required by GAAP, the financial statements of the reporting entity include those of the Town (as the primary government) and any component units for which the Town is financially accountable. The Town is considered financially accountable for legally 1 separate organizations if it is able to appoint a voting majority of that organization's governing body, if it is able to impose its will on that organization, or if there is a potential for the organization to provide specific financial benefits to, or to impose specific financial ' burdens on, the Town. Consideration is also given to.other organizations that are fiscally dependent upon the Town; that is, organizations that are unable to adopt a budget, levy taxes, or issue debt without approval by the Town. Finally, organizations for which the nature and significance of their relationship with the Town are such that exclusion would ' cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. ' Discretely Presented Component Unit The component unit column presents the Town's component unit, the Vail Local Marketing District (the "District"). The financial data is reported in a separate column to ' emphasize that it is legally separate from the Town. Town Council members also act as the District's Board of Directors. The District was authorized on November 2, 1999 by general election that established a 1.4% tax on lodging within the Town's boundaries, beginning January 1, 2000. Proceeds from the tax are to be used for organization, management, promotion, and marketing of public events, for business recruitment, and for tourism promotion. ' The financial statements of the District can be obtained from the Town's administrative offices. 1 Other Entities The Town does not exercise oversight responsibility over any other entity, nor is the Town a component unit of any other governmental entity. B. Fund Accounting ' The Town uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain ' government functions or activities. 8 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) ' 1. Summary of Significant Accounting Policies (continued) B. Fund Accounting (continued) A fund is a separate accounting entity with aself-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. ' Funds are classified into three categories: governmental, proprietary and fiduciary. Each category, in turn, is divided into separate "fund types". Governmental funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies (special revenue funds), and the servicing of general long-term debt (debt service funds). The General Fund is used to account for all activities of the general government not accounted for in another fund. Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government (internal service funds). ' Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the Town under terms of a formal trust agreement. The expendable trust fund is accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting. Expendable trust funds account for assets where both the principal and interest-may be ' spent. The pension trust fund is accounted for in essentially the same manner as the proprietary fund types, using the same measurement focus and basis of accounting. The General Fixed Asset Account Group is used to account for fixed assets not accounted for in the proprietary or trust funds. The General Long-Term Debt Account ' Group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of the proprietary or trust funds. The two account groups are not "funds". They are concerned only with the measurement of financial position and not with 1 the results of operations. C. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this focus, only current assets .and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. 9 Town of Vail, Colorado Notes to the Financial Statements ' December 31, 2002 (Continued) 1. Summary of Significant Accounting Policies (continued) C. Basis of Accounting (continued) All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earning components. Proprietary fund-type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Town ' considers property taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. ' Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year ' Those revenues susceptible to accrual are property taxes, sales taxes, franchise taxes, special assessments, licenses, and charges for services. Sales taxes are collected by the Town and are recognized as revenue when collected by the vendors. Fines and permits revenues are not susceptible to accrual because generally they are not measurable until received in cash. The accrual basis of accounting is utilized by proprietary fund types and nonexpendable ' trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. D. Deferred Revenue The Town reports deferred revenue on its combined balance sheet. Deferred revenues arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. In subsequent periods, when both revenue recognition criteria are met, or when the Town has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is ' recognized. E. Encumbrances ' Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed by the Town. Encumbrances lapse at fiscal ' year end. Expenditures are recorded when the related liability is incurred. ii i0 t 1 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) Summary of Significant Accounting Policies (continued) F. Equity in Pooled Cash and Investments Cash and investments include demand deposits as well as investments. Investments are stated at market value. G. Inventory Inventory is valued at lower of cost or market using the first-in, first-out method. Inventory in the Internal Service Fund -Heavy Equipment Fund consists of expendable supplies held for consumption. H. Prepaid Items Payments made to vendors for services that will benefit periods beyond December 31, 2002 are recorded as prepaid items. Fixed Assets General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets over $5,000 are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized in the governmental funds. Improvements in the proprietary funds are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the Town. Assets in the General Fixed Assets Account Group are not depreciated. Depreciation of buildings, equipment and vehicles in the proprietary fund types is computed using the straight-line method. Use of Estimates The preparation of financial statements to conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. K. Proprietary Funds As required by GASB Statement No. 20, the Town has elected to follow for its proprietary funds, all GASB pronouncements and FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins issued on or before November 30, 1989, except those that conflict with a GASB pronouncement. 11 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) Summary of Significant Accounting Policies (continued) L. Interfund Transactions Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund, are recorded as expenditures or expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Non-recurring or non-routine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 1 1 M. Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as expenditure and a fund liability of the governmental fund that will pay it. Vacation pay is accrued in proprietary funds and reported as a fund liability. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the general long-term debt account group. No expenditure is reported for these amounts. No liability is recorded for non-vesting accumulating rights to receive sick pay benefits. N. Long-Term Obligations Long-term debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt service funds for payment early in the following year. For other long-term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund, The remaining portion of such obligations is reported in the general long-term debt account group. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. O. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. P. Memorandum Only -Total Columns Total columns on the general purpose financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 12 Town of Vail, Colorado Notes to the Financial Statements ' December 31, 2002 (Continued) 1. Summary of Significant Accounting Policies (continued) Q. Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the government's financial positions and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand. R. Deferred Property Taxes All property taxes become due and payable in the year following that in which they are levied, at which time they are recognized as revenues. Property taxes are recorded as receivable and deferred revenue in the year they are levied. 1 S. Budgets and Budgetary Accounting An annual budget and appropriation ordinance is adopted by the Town Council in accordance with the Town's Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds except two Internal Service Funds: the Heavy Equipment Fund and the Dispatch Services Fund. The budgets for these funds have been adopted on a non-GAAP budget basis and are reconciled to the GAAP basis below: Net Income (Loss) -Budgetary Basis add/(less): Depreciation Capital outlay Accrued vacation Net Income (Loss) - GAAP Basis Internal Service Funds Heavy Equipment Dispatch Services Fund Fund $ (601,855) 113,586 (589,994) (80,319) 298,189 8,490 $ (893,660) 41,757 The level of control in the budget at which expenditures exceed appropriations is at the ' fund level. All appropriations lapse at year end. T. Cash and Cash Equivalents ' The proprietary fund cash and cash equivalents consist of cash on hand. The Town has a policy of central cash management for all funds except the Employee Pension Trust Fund and the Deferred Compensation Plan. ' U. Investment Risk The Town's investments, with the exception of investments held within the Employee Pension Trust Fund and the Deferred Compensation Plan, are invested primarily in COLOTRUST and government obligations. The Pension Trust Fund and Deferred Compensation Plan investments are held in mutual funds and a limited partnership (the limited partnerships may invest in derivatives). The value of the investments.fluctuates ' as market conditions change. 13 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2002 (Continued) ' 1. Summary of Significant Accounting Policies (continued) ' U. Investment Risk (continued) GASB Technical Bulletin No. 94-1 defines derivatives as "contracts whose value depends on, or derives from, the value of an underlying asset, reference rate, or index." At ' December 31, 2002, the Town held the following investments that may be considered derivatives under this definition: Of ' Investment Book Value Market Value Pool Small Business Association (SBA) Pools $ 252,697 252,697 1.1 ' Adjustable Rate Mortgages (ARMs) $ 1,418,916 1,418,916 6.1 The Town recognizes that investment risks can result from credit risk, market risk, and legal risk. The Town seeks to minimize these risks by investing in seasoned SBA pools and ARMs that are backed by the U.S. Government. The Town's intent in investing in these instruments is to achieve long-term rates of return ' with the decreased volatility of fixed rate, short-term instruments. V. Credit Risk ' The receivables of the various funds of the Town are primarily due from other governments. Management believes that the credit risk related to the receivables is minimal. ' 2. Budgets ' The Town published its biennial budget for the 2001 - 2002 budget years in December 2000. Adjustments were made to the 2002 budget prior to its adoption in December 2001. The Town followed these procedures in establishing the budgetary data reflected in the financial statements. (1) For the 2002 budget, prior to August 25, 2001, the County Assessor sent to the Town a ' certified assessed valuation of all taxable property within the Town's boundaries. (2) Prior to the end of the 2001 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2001, the Town computed and cert~ed to the County Commissioners a rate of levy that derived the necessary property taxes as computed in the proposed 2002 budget. (4) After a required publication of "Notice of Proposed Budget", the Town adopted the proposed budget and an appropriating resolution which legally appropriates expenditures ' for the upcoming year. (5) After adoption of the budget resolution, the Town may make the following changes: ' supplemental appropriations to the extent of revenues in excess of those estimated in the budget; emergency appropriations; and reduction of appropriations for which originally estimated revenues are insufficient. 14 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) 2. Budgets (continued) ' Taxes levied in one year are collected in the succeeding year. Thus taxes certified in 2001 were collected in 2002 and taxes certified in 2002 will be collected in 2003. Taxes are due on January 1 in the year of collection; however, they may be paid in either one installment (no later than April 30) or two equal installments (not later than February 28 and June 15) without interest or penalty. ' Taxes which are not paid within the prescribed time bear interest at the rate of one percent (1 %) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 17. 3. Cash and Investments A. Authorization for Deposits and Investments ' Pursuant to its charter, the Town has adopted, by ordinance, an investment policy governing the types of institutions and investments with which it may deposit funds and ' transact business. Under this policy, the Town may invest in federally insured banks, debt obligations of the U.S. Government, its agencies and instrumentalities, governmental mutual funds and pools, and repurchase agreements subject to policy requirements. ' The Town also accounts for the operations of the employees' pension plans that are administered by select employees acting as trustees who are governed by a trust agreement. The trust agreement gives the trustees considerable latitude with investment alternatives. As a result, all pension investments are considered legal under the trust agreement. B. Deposits and Investments The Town maintains a cash and investment pool in which all funds participate except the Deferred Compensation Plan and the Pension Trust Fund. Each fund's position in this pool is displayed on the combined balance sheet as "Equity in Pooled Cash and Investments." In addition, several of the Town's funds may include investments held separately that are restricted for various purposes. ' The Colorado Public Deposit Protection Act ("PDPA") requires that all units of local government deposit cash in eligible public depositories; eligibility is determined by state ' regulators. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. The amount of total bank balance may be classified among the following three categories on the basis of credit risk: (1) Insured or collateralized with securities held by the entity or by its,agent or by its agent in the entity's name; ' (2) Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name; . ' (3) Uncollateralized. This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department of agent but not in the entity's name. 15 e ~ ,. C is i. L Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) Cash and Investments (continued) ' B. Deposits and Investments (continued) At December 31, 2002, the Town's cash deposits were entirely insured or collateralized with securities held by the entity's agent as described above. The carrying value of the Town's deposits was $7,151,447. The bank balance of these accounts was $7,258,472 of which $100,000 was covered by FDIC insurance and $7,158,472 was collateralized in institution pools as described above. At December 31, 2002, the Town had invested $14,357,470 in the Colorado Government Liquid Asset Trust (COLOTRUST), an investment vehicle established for local government entities in Colorado to pool surplus funds. These funds operate similarly to a money market fund and each share is equal in value to $1. Investments of these funds consist of U.S. Treasury bills, notes and note strips and repurchase agreements collateralized by U.S. Treasury securities. A designated custodial bank provides safekeeping and depository services in connection with the direct investment withdrawal functions. GASB has determined three levels of credit risk that apply to the Town's investments: (1) Insured or registered, with securities held by the Town, Employee Pension Trust Fund or its agent in the Town's or Employee Pension Trust Fund's name. (2) Uninsured or unregistered, with securities held by the counter party's trust department or agent in the Town's or Employee's Pension Trust Fund's name. (3) Uninsured or unregistered, with securities held by the counter party, or by its trust department or agent but not in the Town's or Employee Pension Trust Fund's name. The following is a summary of the Town's investments at amortized cost and market which approximates market, categorized into the aforementioned levels of risk at December 31, 2002. Category 2 Carrying Value U.S. Government Securities $1,651,625 $ 1,651,625 Investments in money market mutual funds are not categorized as described above since such investments are not evidenced by specific securities that exist in physical or book form. During the year, the Town invested in certificates of deposit, Treasury bills and notes, government agency securities, COLOTRUST, GNMAs, ARM pools, SBA pools, and money market accounts. 16 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) ' 3 C h d I e . as an nv stments (continued) B. Deposits and Investments (continued) ' The Town s total cash deposits and investments, including those of the Employee Pension Trust Fund and the Deferred Compensation Plan, at December 31, 2002 are as 1 follows: , Employee Deferred Total Primary Total ' All Other Pension Trust Compensation Primary Component Reporting Funds at Market Fund at Market Plan Govemment U it E ti n n ty Cash $ 13,445 194,115 - 207,560 - 207,560 Money market/ checking - accounts 6,153,875 6,153,875 446,996 6,600,871 Certificate of Deposit 1,018,210 - - 1,018,210 - 1,018,210 Statutory Govemmeht pools 14,357,470 - - 14,357,470 - 14,357,470 U.S. Govemment obligations 1,651,625 - - 1,651,625 - 1,651,625 Commercial stocks/bonds funds - 16,455,453 - 16,455,453 - 16,455,453 Money market mutualfunds - 6,686,616 - 6,688,616 Limited partnerships - 31,049 31,049 - 6,688,616 31 049 ~ Real estate fund 1,062,602 1,062,602 = , 1,062,602 Deferred compensation - - 2,319,243 2,319,243 - 2,319,243 1 Total $ 23,194,625. 24,431,835 2,319,243 49,945,703 446,996 50,392,699 Investments in the Deferred Compensation Plan and the Pension Trust Fund are held by the Trustees, and are not categorized because they are not evidenced by speck securities that exist in physical or book form. Financial statement captions at December 31, 2002 are as follows: Primary Component Reporting Government Unit Entity Cash $ 13,445 446,996 460,441 Equity in pooled cash and investments 23,181,180 23,181,180 Employee Retirement Plan investments 26,751,078 - 26,751,078 Total $ 49,945,703 446 996 50 392 699 , , , 4. Fixed Assets A. Changes in General Fixed Assets Account Group January 1, December 31, 2002 Additions Retin~rtents Land $ 19,277,499 5,696,710 2002 24,974,209 Buildings 40,496,966 686,183 - 41,183,149 Improvements other than buildings 4,367,079 10,636 - 4,377,715 1 IVlachin~yand equipment 12,396,894 332,137 114,611 12,614,420 Total $ 76,538,438 6,725,666 .114,611 83,149,493 0 17 1 4. Fixed Assets r t Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) B. Proprietary Fund Type Fixed Assets Summary Buildings Improvements other than buildings Equipment Subtotal Less: Accumulated depreciation Total Internal Service Funds Heavy Dispatch Equipment Services Fund Fund Total $ 1,350,557 - 1,350,557 815,520 23,769 839,289 5,482,126 670,347 6,152,473 7,648,203 694,116 8,342,319 (4,442,904) 514,624 (4,957,528) $ 3,205,299 179,492 3,384,791 Depreciation on fixed assets in the proprietary fund types are recorded using the following estimated useful lives: Vehicles 5 - 7 years Equipment 5 -10 years Buildings 25 - 30 years The Town's proprietary fund types had the following amounts of fully depreciated assets in use at December 31, 2002: Internal Service Fund -Heavy Equipment Fund $612,630 Internal Service Fund -Dispatch Services Fund 219,946 5. Operating Leases The Town is committed under various leases for buildings, office space, and equipment. For accounting purposes, these leases are considered to be operating leases, and therefore, the liability and the related assets have not been recorded in these financial statements. 6. General Long-Term Debt A. General Obligation Refunding Bonds, Series 1992A The Town issued $7,500,000 of insured General Obligation Refunding Bonds dated October 1, 1992 (the "1992A Bonds"). The proceeds of the 1992A Bonds were used to refund 1985 bonds that were subject to redemption at the Town's option in 1996. The interest rate on the 1992A Bonds ranged from 3.00% to 5.8% and is payable on June 1 and December 1 annually through December 2005. The 1992A Bonds were general obligations of the Town, payable from ad valorem property taxes levied without limitation as to rate or amount against all taxable property in ' the Town. 18 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) ^ 6. General Long-Term Debt (continued) A. General Obligation Refunding Bonds, Series 1992A (continued) 1992A Bonds maturing on or before December 1, 2002 were not subject to prior redemption. 1992A Bonds maturing on December 1, 2005 are subject to redemption prior to their maturities, at the option of the Town, in whole or in part, on December 1, 2002 or thereafter, at the redemption prices set forth in the table below (expressed as a percentage of the principal amounts redeemed) plus accrued interest to the redemption ~ date: Redemption Dates Redemption Prices December 1, 2002 through November 30, 2003 101% December 1, 2003 and thereafter 100% During the year ended December 31, 2002, the outstanding principal balance of the 1992A Bonds was entirely refunded with the proceeds of the General Obligation Refunding Bonds, Series 2002A issued by the Town, as discussed in Note 6.D., below. B. Sales Tax Revenue Refunding and Improvement Bonds, Series 19928 The Town issued $15,165,000 of insured Sales Tax Revenue Refunding and Improvement Bonds dated October 1, 1992 (the "19926 Bonds"). The proceeds of the 19928 Bonds were used for capital projects with an aggregate cost of $5,700,000, and to refund all outstanding 1989 Sales Tax Revenue Bonds. The interest rate on the 1992B Bonds ranged from 3.00% to 6.125% and is payable on June 1 and December 1 annually through December 1, 2012. The bonds were special limited obligations of the Town payable solely from the Town's existing 4% sales tax and net revenues generated by the Town's parking facilities. The bonds constitute an irrevocable lien upon the pledged revenues, in part on a basis subordinated to other obligations of the Town. Bonds maturing on or before June 1, 2002 were not subject to prior redemption. Bonds maturing on or after June 1, 2005 were subject to redemption prior to their maturities, at the option of the Town, in whole or in part, on December 1, 2002 or thereafter, at the redemption prices set forth in the table below (expressed as a percentage of the principal amounts so redeemed) plus accrued interest to the redemption date: 1 Redemption Dates Redemption Prices December 1, 2002 through May 31, 2003 101 June 1, 2003 and thereafter 100% The Town refunded $6,580,000 of the principal balance of the 19928 Bonds due on September 1, 1998 when the 1998 bonds were issued, as discussed in Note 6.C., below. During the year ended December 31, 2002, the outstanding principal balance of the 1992B Bonds was entirely refunded with the proceeds of the Sales Tax Revenue Refunding Bonds, Series 20028 issued by the Town, as discussed in Note 6.E., below. 19 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) 6. General Long-Term Debt (continued) C. Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A and Taxable Sales Tax Revenue Refunding Bonds, Series 19988 The Town issued $8,760,000 of insured Tax-Exempt Sales Tax Revenue Refunding Bonds (the "1998A Bonds") and $735,000 of insured Taxable Sales Tax Revenue Refunding Bonds (the "19986 Bonds°) dated September 1, 1998 (collectively, the "1998 Bonds"}. Proceeds from the 1998 Bonds were used to refund the outstanding principal balance of the Town's Sales Tax Revenue Bonds, Series 1991 and a portion of the outstanding principal balance of the 19926 Bonds. The Town placed the proceeds of the refunding in escrow to provide funds to pay 1 principal and interest on the refunded bonds. All the refunded bonds are considered to be defeased. The interest rate on the 1998A Bonds ranges from 4.25% to 4.5%, while the interest rate on the 19988 Bonds ranges from 6.00% to 6.05%. Coupon payment dates for the 1998 Bonds are June 1 and December 1 annually. 1 Ll The 1998 Bonds are revenue obligations of the Town payable solely from the Town's 4% sales tax. The 1998 Bonds are secured by a lien on, but not an exclusive lien on, the sales tax. 1998A Bonds maturing on and after December 1, 2009 are subject to redemption prior to maturity at the option of the Town, in whole or in part, on December 1, 2008 and thereafter, at a redemption price equal to par, plus accrued interest to the redemption date. The 19986 Bonds are not subject to redemption prior to maturity. At December 31, 2002, the annual debt service requirements to maturity for the 1998A Bonds are as follows: Year 2003 2004 2005 2006 2007 2008 - 2012 Total Principal $ - 985,000 7,775,000 $ 8,760,000 Interest Total 386,628 386,628 386,628 386,628 386,628 1,071,632 3, 004, 772 386,628 386,628 386,628 386,628 1,371,628 8,846,632 11, 764, 772 At December 31, 2002, the annual debt service requirements to maturity for the 19988 Bonds are as follows: Year 2003 2004 2005 2006 2007 Total Principal $ - 360,000 375,000 $ 735,000 Interest 44,288 44, 288 44,288 44,288 22,688 199,840 Total 44,288 44,288 44,288 404,288 397,688 934,840 20 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) 6. General Long-Term Debt (continued) D. General Obligation Refunding Bonds, Series 2002A The Town issued $3,205,000 of General Obligation Refunding Bonds dated September 1, 2002 (the "2002A Bonds"). Proceeds from the 2002A Bonds were used to refund the 1992A Bonds that were subject to redemption at the Town's option in 2002, as detailed in Note 6.A. The interest rate on the 2002A Bonds ranges from 3.0% to 4.0% and is payable on December 1 annually through December 2005. The 2002A Bonds are general obligations of the Town, payable from ad valorem property taxes to be levied without limitation as to rate or amount against all taxable property in the Town. The Series 2002A Bonds are not subject to early redemption. At December 31, 2002, the annual debt service requirements to maturity for the 2002A Bonds are as follows: 2003 2004 2005 Total Year Principal $ 1,140, 000 1,295,000 770,000 $ 3,205,000 Interest 120,500 74,900 23,100 218;500 Total E. Sales Tax Revenue Refunding Bonds, Series 20026 1,260,500 1,369,900 793,100 3, 423, 500 The Town issued $5,570,000 of Sales Tax Revenue Refunding Bonds dated September 1,.2002 (the "20026 Bonds°). Proceeds from the 20026 Bonds were used to refund all outstanding 19926 Bonds. The interest rate on the 20028 Bonds ranges from 2.5% to 4.0% and is payable on June 1 and December 1 annually through December 1, 2012. The 20026 Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax and from any legally available tax or taxes or fees (other than general ad valorem tax). The 20028 Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues, on parity with the 1998 Bonds. 20026 Bonds maturing on or before December 1, 2011 are not subject to prior redemption. 20026 Bonds maturing on or after June 1, 2012 are subject to redemption prior to their maturities, at the option of the Town, in whole or in part, on December 1, 2011 or thereafter, at a redemption price equal to the principal amount redeemed, plus a redemption premium equal to 1 % of the principal redeemed, plus accrued interest to the redemption date. 21 ~ s. 1 Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) Generai Long-Term Debt (continued) E. Sales Tax Revenue Refunding Bonds, Series 2002B (continued) At December 31, 2002, the annual debt service requirements to maturity for the 20028 Bonds are as follows: Year 2003 2004 2005 2006 2007 2008 - 2012 Total F.. Capital Leases Principal $ - 310,000 925,000 1,395,000 450,000 2,490,000 $ 5,570,000 Interest 184,533 183,283 166,283 131,408 102,783 264,490 1,032,780 Total 184,533 493,283 1,091,283 1, 526,408 552,783 2, 754,490 6,602,780 The Town has entered into alease/purchase agreement for equipment, which has been accounted for as a capital lease. The leased assets and related obligation are accounted for in the General Fixed Assets Account Group and the General Long-Term Debt Account Group, respectively. The following is a schedule of future minimum rental payments due under the terms of these lease arrangements: Year ending December 31, 2003 $ 152,372 Less: Interest (7,518) Net present value of future minimum lease payments $ 144,854 G. Vacation and Sick Leave Pay Benefits The Town has a policy allowing the accumulation of paid vacation and sick leave, subject to certain maximum limits. In accordance with GAAP, the Town's approximate liability for 1 vacation pay earned by employees at December 31, 2002 has been reflected as a component of the Town's general long-term debt account group. Accumulated sick pay of approximately $1,716,390 at December 31, 2002 has not been reflected in the Town's financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. n 22 t 1 1 t Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) 6. General Long-Term Debt (continued) H. Changes in General Long-Term Debt The following is a summary of changes in the General Long-Term Debt Account Group for the year ended December 31, 2002: January 1, December 31, 2002 Additions Retirements 2002 General Obligation Bonds: Refunding Bonds, Series 1992A $ 4,200,000 - 4,200,000 - Refunding Bonds, Series 2002A - 3,205,000 - 3,205,000 Sales Tax Revenue Bonds: Refunding and Improvement Bonds, Series 19928 5,570,000 - 5,570,000 - Tax-Exempt Refunding Bonds, Series 1998A 8,760,000 - - 8,760,000 Taxable Refunding Bonds, Series 19988 735,000 - - 735,000 Refunding Bonds, Series 2002B - 5,570,000 - 5,570,000 Capitalized lease agreements 282,887 - 138,033 144,854 Vacation payable 641,598 73,154 - 714,752 $ 20,189,485 8,848,154 9,908,033 19,129,606 I. Authorized, Issued and Defeased Bonds At December 31, 2002, there was no authorized but unissued debt, and there were no outstanding defeased bonds for refunded Town bond issues at year end. J. Conduit Debt Obligations In 1992, the Town issued $7,505,000 of Single Family Revenue Refunding Bonds to refund bonds originally issued in 1981 to provide financial assistance to aprivate-sector entity for the construction of a commercial housing project deemed to be in the public interest (Pitkin Creek Park, located in East Vail). The bonds were secured by the property financed and were payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facility transferred to the private-sector entity served by the bond issuance. The Town was not obligated in any manner for repayment of the bonds. On December 11, 2001, the underlying mortgage loans were sold and the funds received from the sale of the mortgages were placed in escrow. All outstanding bonds were redeemed on June 1, 2002 with the funds from the sale of the mortgages. 23 i Town of Vail, Colorado 1 Notes to the Financial Statements December 31, 2002 (Continued) 7. Pension Plans The Town offers two defined contribution pension plans to cover all permanent paid employees of the Town. In addition, employees of Vail Recreation District (°VRD") participate and are subject to the same plan provisions. The plans covered approximately 977 participants in 2002. The Town established these qualified money purchase pension plan under Internal Revenue Code ("IRC°) section 401(a), and may amend all of the plan provisions. The first plan covers all full time and qualified seasonal employees of the Town and VRD other than sworn police officers and firefighters; the second plan covers all full time and qualified seasonal employees of the Town's Police and Fire departments. The plan provisions are the same for both plans. In defined contribution plans, benefits depend solely on amounts contributed to the plans plus investment earnings. Employees are eligible to participate in the plans from the date of employment or the effective date of the plans, January 1, 1983, whichever is later. The plans provide for contributions to be made by the Town of 12.6% of regular compensation for the first year of employment and 17.6% thereafter. For employees hired after April 1, 1986, the Town's contribution is 11.15% of regular compensation for the first year, and 16.15% thereafter. Employees have the option to make voluntary contributions of up to 10% of their compensation. In the event of continued long-term disability of an employee, the Town's disability insurance will continue to make contributions to the plan for the employee through age 60 at the rate on the date of disability. For employees hired before July 1, 1986, vesting of the Town's contributions is 77.5% after the first year of employment with an additional vesting of 7.5% per year through the fourth year, when vesting is 100%. For employees hired after June 30, 1986, vesting of the Town's contributions to the employees is 20% after the first year of employment with additional vesting of 20% per year through the fifth year, when vesting is 100%. If an employee dies, becomes disabled, or attains the age of 60, their entire interest in the plans becomes vested; normal retirement age is 60 with early retirement at age 50 and four years of service. In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5%. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. ' The annual pension cost is the Town s contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2002 of $24,431,835 are stated at market value. All earnings, losses, expenses and changes in the fair market value of the trust fund will be apportioned at least annually among the participants in proportion to each participant's current share of the Trust Investment Fund. The Town has no liability for unfunded future vested employee benefits. The trustees and administrators of the plans are the Retirement Boards. The Retirement Boards determine investment options made available to participants, in adherence with an adopted 1 investment policy statement. The total amount of the Town's 2002 covered payroll was $10,354,294, of which $9,035,998 was for permanent employees and $1,318,296 was for seasonal staff. Total 2002 payroll for all Town employees was $10,748,820. 24 ~ , 1 ~ . ~ .. ,o. ~ Town of Vail, Colorado Notes to the Financial Statements December 31, 2002 (Continued) Pension Plans (continued) At December 31, 2002, the plan held the following investments that exceeded 5% of total plan assets: Amount Montag & Caldwell Growth $ 1,692,122 Artisan Intemational Stock Fund 1,361,463 Dodge & Cox Stock Fund 3,002,740 Glenmede Intemational Fund 1,316,784 Scudder Fixed Income 4,770,733 of Plan Assets 6.9% 5.6% 12.3% 5.4% 19.5% Retirement Savings Plan -Deferred Compensation Plan -IRC 457 The Town offers its employees a deferred compensation plan (the "457 Plan") created in accordance with Internal Revenue Code ("IRC") Section 457. The 457 Plan, available to all Town employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the 457 Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the 457 Plan participants and their beneficiaries. The modified accrual basis of accounting is used for the 457 Plan. The trustees and administrators of the 457 Plan are the Retirement Board, which comprises members of the Town's administration. The Retirement Board determines investment options made available to participants, in adherence to an adopted investment policy statement. The Town has no liability for losses under the 457 Plan but does have the duty of due care that would be required of an ordinary prudent investor. The total assets of the 457 Plan were $2,319,243 at December 31, 2002. The assets were invested in mutual funds and a limited partnership, as detailed in Note 3.B. Pursuant to the Town's adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. Employee Health Insurance Fund The Town has established a "Shared Fund -Minimum Premium".health insurance plan, to provide medical benefits to eligible employees. Premiums are determined at the beginning of each plan year and are charged to individual funds when paid. The Town has established a $757,053 reserve for future claims in the event that claims exceed the premiums charged to other funds of the Town. 25 Town of Vail, Colorado 1 Notes to the Financial Statements December 31, 2002 (Continued) 10. Employee Health Insurance Fund continued ( ) The Town also carries a stop loss policy through which the Health Insurance Fund is reimbursed for individual claims exceeding $50,000 per employee and an umbrella policy which limits the Town's aggregate claims liability. The estimated maximum liability for 2002 was $2,000,000 and actual claims paid were $1,159,826. 1 11. Risk Management I The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and worker's compensation for which the Town carries commercial insurance. The worker's compensation premiums are subject to adjustments based on audits of actual claims incurred. 12. Commitments and Contingencies ' A. Legal Claims During the normal course of business, the Town incurs claims and other assertions against it from various agencies and individuals. Management of the Town and their legal representatives feel none of these claims or assertions are significant enough that they would materially affect the fairness of the presentation of the financial statements at December 31, 2002. B. Federal Funds Funds received from Federal grants and programs are subject to audit and disallowance 1 on ineligible costs. Management of the Town feels any potential questioned or disallowed costs would not materially affect the fairness of the presentation of the financial statements at December 31, 2002. ' 13. TABOR Amendment -Revenue and Spending Limitation Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly known as the Taxpayer's Bill of Rights (°TABOR"). TABOR contains revenue, spending, tax and debt limitations which apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple-fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish emergency reserves to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude economic conditions, revenue shortfalls, or salary or fringe benefit increases. These reserves are required to be 1 % or more of fiscal year spending (excluding bonded debt service) for the fiscal year ended December 31, 1994, 2% or more for the fiscal year ended December 31, 1995 and 3% or more thereafter. The Town has reserved a portion of its December 31, 2002 year-end fund balance in the General Fund for emergencies as required under TABOR in the amount of $974,000, which is the approximate required reserve. 26 Town of Vail, Colorado ' Notes to the Financial Statements December 31,-2002 (Continued) 13. TABOR Amendment.-.Revenue and Spending Limitation Amendment (continued) The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are determined based on the prior year's fiscal year spending adjusted for inflation in the prior calendar year plus annual local growth. Fiscal year spending is generally defined as expenditures and reserve increases with certain exceptions. Revenue, if any, in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. I The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such ' tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1993. On November 7, 2000, voters of the Town approved the collection and expenditure of all ' revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions of the TABOR Amendment apply, which are: • Voter approval of all new taxes and tax rate increases; • Voter approval for new or additional Town of Vail debt; • No increase or imposition of a new real estate transfer tax; and, ' All election requirements remain in effect. 14. Subsequent Event 1 On November 5, 2002, the Town's voters approved a ballot measure which authorized the Town to issue revenue bonds with a maximum aggregate principal amount of $50,060,000 to finance the construction of a convention center in Town. Under the terms of the approved ballot measure, repayment of the bonds is to be funded via the levy of a 1.5% short-term lodging tax and an increase in the Town's sales tax rate from 4.0% to 4.5%, effective January 1, 2003, with both taxes terminating upon repayment of the underlying bonds. 27 Combinin and Individual Fund 9 And Account Group Statements The combining financial statements present a summary of the financial position of all funds of a given fund type and of the operating results of the same funds. The individual fund and account group statements present information when only one fund or account group exists. I ii General Fund 1 The General Fund is used to account for resources traditionaNy associated with government which are not required legally or by sound financial management to be accounted for in another fund. 1 t ri Town of Vail, Colorado ' General Fund Statement of Revenues - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2002 ' (With Comparative Actual Amounts for 2001) 1 2002 200 Variance Amended Favorable 1 Budget Actual (Unfavorable) Actual Taxes: General sales taxes 9,948,885 10,337,852 388,967 8,968,544 1 Property and ownership taxes 2,807,267 2,799,910 (7,357) 2,606,648 Resort fees 2,146,000 2,344,921 198,921 2,145,587 Franchise fees 598,175 580,372 (17,803) 628,427 ' Penalties and interest on delinquent taxes 23,700 37,315 13,615 343 576 56,610 816 14 405 Total Taxes 15,524,027 16,100,370 , , , Licenses and Permits: Construction fees 650,000 854,377 204,377 789,170 ' Contractors' licenses 38,000 28,115 (9,885) 27,991 Other permits and licenses 37,400 50,281 12,881 46,782 Total Licenses and Permits 725,400 932,773 207,373 863,943 t Intergovernmental Revenues: County sales tax 475,000 491,952 16,952 511,870 County road and bridge 489,906 492,166 2,260 477,279 Additional motor vehicle registration fees 28,000 26,320 (1,680) 27,049 ' Cigarette tax 118,597 92,665 (25,932) 98,604 Highway users tax 212,000 217,835 5,835 219,674 State health inspection 13,566 6,398 (7,168) 12,117 ' Other State sources 111,200 7,500 (103,700) 12,914 Federal sources - 14,528 14,528 29,118 Total Intergovernmental Revenues 1,448,269 1,349,364 (98,905) 1,388,625 ' Charges For Services: Management fees -Vail Local Marketing District 32,000 30,403 (1,597) 26,778 Internal service charges 117,000 117,000 - 117,000 Out of district fire response 36,000 57,844 21,844 31,065 Alarm monitoring fees 56,911 57,171 260 56,990 Parking 2,300,000 2,548,805 248,805 2,313,445 Other charges, services, and sales 340,578 351,231 10,653 184,569 Total Charges for Services 2,882,489 3,162,454 279,965 2,729,847 Other: Fines and forfeitures 194,350 226,543 32,193 273,723 ' Interest on investments 185,000 165,088 (19,912) 273,496 Rents 529,968 507,211 (22,757) 552,513 Other 253,045 280,277 27,232 438,857 ' Total Other Revenues 1,162,363 1,179,119 16,756 1,538,589 Total Revenues 21,742,548 22,724,080 981,532 20,926,820 I The accompanying notes are an integral part of these financial statements. 28 II II Town of Vail, Colorado ' General Fund Statement of Expenditures and Other Financing Uses Budget (GAAP Basis) and Actual For the Year Ended December 31, 2002 (With Comparative Actual Amounts for 2001) i 2002 Actual Amended Budget Expenditures: Town officials 1,224,266 Administrative 2,630,882 Community development 1,426,396 Public safety -Police Public safety -Fire 3,951,715 1,675,039 Public works 2,384,194 Public transportation 3,020,348 ' Parking 467,318 Facility maintenance 2,270,455 Public library 829,143 Contributions and special events 1,267,852 ' Total Expenditures 21,147,608 Other Financing Uses: ' Transfer to Vail Local Marketing District Total Other Financing Uses ' Total Expenditures and Other Financing Uses 1,068,300 2,435,547 1,301,913 3,800,769 1,614,239 2,367,310 2,771,594 464,470 2,251,600 854,922 1,298,758 20,229,422 variance. Favorable (Unfavorable) 155,966 195,335 124,483 150,946 60,800 16,884 248,754 2,848 18,855 (25,779) (30,906) 918,186 2001 Actual 1,041,908 2,340,622 1,335,566 3,665,889 1,414,042 2,371,611 2,709,129 407,864 2,188,308 729,646 840,158 19,044,743 317,000 317,000 21,147,608 20,229,422 918,186 19,361,743. The accompanying notes are an integral part of these financial statements. 29 ' Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose. The Town has the following Special Revenue funds: Capital Projects Fund -This fund is used to account for a portion of the Town's sales tax and inter- governmental revenue which are restricted for the acquisitions of and improvements to the Town's ' general fixed assets. Real Estate Transfer Tax Fund -This fund is used to account for the collection of Real Estate Transfer Tax revenue which is specifically restricted for acquiring and improving real property for recreation and ' open space purposes. Vail Marketing Fund -This fund is used to account for the collection of a business license fee which is ' specifically restricted for expenditures related to marketing the town of Vail. ll 1 ii Totals Assets: Equity in pooled cash and investments Receivables: Taxes and fees Other governments Other Total Assets Liabilities and Fund Equity Liabilities: Accounts payable Accrued wages and benefits Retainage payable Deferred revenue Total Liabilities Fund Equity: Fund balances: Designated for subsequent years' expenditures Undesignated Total Fund Equity Total Liabilities and Fund Equity Town of Vail, Colorado Special Revenue Funds Combining Balance Sheet For the Year Ended December 31, 2002 (With Comparative Totals for 2001) Capital Real Estate Vail Projects Transfer Marketing d F Tax Fund Fund 2002 2001 un 7,200,112 5,276,862 38,516 12,515,490 15,163,338 330 169 2 98,974 - 2,268,304 2,020,311 , , 53 068 - - 53,068 1,053,068 , 10 058 137 106 - 116,195 135,278 , , 432 568 9 973 481 5 38,516 14,953,057 18,371,995 , , , , 988 489 331,078 190 821,256 663,402 , _ 8,554 - 8,554 7,159 - 58,026 - 58,026 111,873 _ _ - 1,012,340 489 988 658 397 190 887,836 1,794,774 , , 259,948 2 - - 2,259,948 8,755,625 , 682,632 6 5,084,315 38,326 11,805,273 7,821,596 , 942 580 8 315 084 5 38,326 14,065,221 16,577,221 , , , , 432 568 9 973 481 5 38,516 14,953,057 18,371,995 , , , , The accompanying notes are an integral part of these financial statements. 30 ' Town of Vail, Colorado Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended December 31, 2002 ' (With Comparative Totals for 2001) Totals Capital Real Estate Vail Valley Projects Transfer Marketing Fund Tax Fund Fund 2002 2001 Revenues: Taxes 4,926,729 2,943,338 - 7,870,067 9,795,270 Licenses and permits - 8,254 310,692 318,946 335,321 ' Intergovernmental revenues 1,000,000 22,321 - 1,022,321 37,599 Sales of assets 8,857 320,220 329,077 1,345,771 Interest on investments 186,474 113,492 3,875 303,841 748,937 Fines and forfeits 12,340 - - 12,340 12,340 ' Rents 201,980 106,137 - 308,117 251,348 Miscellaneous 845,067 118,859 963,926 668,169 Total Revenues 7,181,447 3,632,621 314,567 11,128,635 13,194,755 Expenditures: Culture and recreation - 759,336 - 759,336 726,264 Economic development - - 310,692 310,692 315,914 Capital projects Total Expenditures 6,833,757 6,833,757 4,311,639 5,070,975 - 310,692 11,145,396. 12,215,424 9,727,737 10,769,915 Excess (Deficiency) of Revenues Over Expenditures 347,690 (1,438,354) 3,875 (1,086,789) 2,424,840 Other Financing Sources (Uses): Operating transfers in 650,000 - - 650,000 - ' Operating transfers (out) Total Other Financing Sources (Uses) (2,075,211) (1,425,211) _ _ (2,075,211) (1,425,211) (2,262,958) (2,262,958) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) (1,077,521) (1,438,354) 3,875 (2,512,000) 161,882 Fund Balance -January 1 10,020,101 6,522,669 34,451 16,577,221 16,415,339 Fund Balance -December 37 8,942,580 5,084,315 38,326 14,065,221 16,577,221 The accompanying notes are an integral part of these financial statements. 31 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Statement of Revenues, Expenditures and Other Financing Sources (Uses) Budget (GAAP Basis) and Actual For the Year Ended December 31, 2002 (V11ith Comparative Actual Amounts for 2001) 2002 2001 Variance Amended Favorable Budget Actual (Unfavorable) Actual 4,629,935 4,926,729 296,794 6,765,744 1,000,000 1,000,000 - - 692,625 - (692,625) 17,429 1,000,000 8,857 (991,143) 1,345,771 12,340 12,340 - 12,340 100,000 186,474 86,474 420,352 149,480 201,980 52,500 139,480 479,633 845,067 365,434 189,459 8,064,013 7,181,447. (882,566) 8,890,575 14,900,997 6,833,757 8,067,240 5,232,001 14,900,997 6,833,757 8,067,240 5,232,001 (6,836,984) 347,690 7,184,674 3,658,574 i Revenues: ' Sales tax revenue CDOT grants Federal grants Sales of assets ' Special parking assessments Interest on investments Leases -Vail Commons ' Other Total Revenues Expenditures: Capital projects and acquisition Total Expenditures ' Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfer in - Heavy Equipment Fund Operating transfer out ' -Debt Service Fund Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and ' Other Financing Sources Over Expenditures and Other Financing (Uses) 650,000 650,000 (2,328,929) (2,075,211) 253,718 2,262,958 (1,678,929) (1,425,211) 253,718 2,262,958 (8,515,913) (1,077,521) 7,438,392 5,921,532 The accompanying notes are an integral part of these financial statements. 32 r 1 1 r 1 f'. Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Project Expenditures -Budget and Actual Comparison For the Year Ended December 31, 2002 Variance Project Amended Favorable Number Project Name Budget Actual (Unfavorable) C61003 Town Shop Improvements 1,525,000 972,435 552,565 912 70 CBI005 Library Building Remodel 80,000 9,088 663 , 337 179 CB1010 Fire Infrastructure Improvements 180,000 000 800 2 686,184 , 2,113,816 CBI021 Donovan Park Pavilion , , 000 15 5,738 9,262 CBI022 Dobson Ice Arena , 000 40 - 40,000 CBI023 Gymnastics Facility Avon , 000 495 2 20,509 2,474,491 CEP004 CEP005 Replace Buses Software/Hardware Purchases , , 179,135 192,019 (12,884) CEP006 Radio Replacement 152,372 151,898 640 32 474 360 87 CEP011 Document Imaging 120,000 052 74 , 82,901 , (8,~9) CEP017 Radio Tower Equipment , 000 25 15,400 9,600 CEP018 Web Page Development , 000 70 1,515 68,485 CEP019 Laptop Project for Police , 372 073 1 18,054 1,055,318 CHP001.. Buy Down Program , , 628 46 36,239 10,389 CHP003 Mountain Bell Housing , - 415 8 (8,415) CHP004 Ruins Project 396 8 , - 8,396 CMP001 Loading and Delivery Study , 690 5 (5,690) CMP004 CMT003 Parking Study Bus Shelter Replacement Program 30,000 , 9,998 20,002 CMT004 Capital Street Maintenance 830,000 9 706,053 765 124 123,947 234 228 CMT005 Facility Capital 352,99 347 772 , 585,594 , 186,753 CMT007 Parking Structure Maintenance , 000 60 58,797 1,203 COT002 Street Light Improvement Program , 696 102 10,736 91,960 COT003 Drainage Improvements , 000 150 29,198 120,802 COT009 COT010 Lionshead Improvements Infrastructure Improvements-Vail Today , 70,000 23,718 46,282 CPA001 Property Acquisition 2,600,000 2,598,230 202 28 1,770. 798 181 CSC010 Way Finding Improvements 210,000 000 479 , 231,677 , 247,323 CSC011 West Meadow Drive , 000 200 170,331 29,669 CSC012 Vllage Streetscape , 000 160 17,070 142,930 CSR002 Vail Valley Drive , Total 14,900,997 6,833,757 8,067,240 The accompanying notes are an integral part of these financial statements. 33 Town of Vail, Colorado 1 Special Revenue Funds Real Estate Transfer Tax Fund Statement of Revenues and Expenditures -Budget (GAAP Basis) and Actual 1 For the Year Ended December 31, 2002 (With Comparative Actual Amounts for 2001) Revenues: ' Real estate transfer tax Recreation amenities fee Lottery revenue ' Sales of assets Project reimbursements Interest on investments Land lease to Vail Recreation District ' Other Total Revenues n 1 1 n D Expenditures: Project management Park maintenance Capital projects Total Expenditures (Deficiency) of Revenues Over Expenditures 2002 Variance Amended Favorable Budget Actual (Unfavorable) 2,500,000 2,943,338 443,338 130,000 8,254 (121,746) 18,000 22,321 4,321 296,500 320,220 23,720 75,000 109,859 34,859 90,000 113,492 23,492 117,387 106,137 (11,250) 9,000 9,000 3,226,887 3,632,621 405,734 2001 . _..._~ 3,029,526 17,037 20,170 324,796 111,868 478,710 ~f f1~/1 A A 1 90,881 91,149 (268) 71,674 767,660 759,336 8,324 726,264 5,854,563 4,220,490 1,634,073 4,424,062 6,713,104 5,070,975 1,642,129 5,222,000 (3,486,217) (1,438,354) 2,047,863 (1,239,893) The accompanying notes are an integral part of these financial statements. 34 Town of Vail, Colorado ' Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Project Expenditures -Budget and Actual Comparison For the Year Ended December 31, 2002 ' Variance Project Amended Favorable ' Number Project Name Budget Actual (Unfavorable) RC101 Gore Creek Promenade Bridge 24,251 25,028 (777) RFP005 Alpine Gardens Contribution 56,460 56,460 - ' RFP007 Ford Park Playground Improvements 18,307 51 18,256 RFP011 Nature Center Bridge Repair 35,995 37,228 (1,233) RMT001 Recreation Path Maintenance 319,644 180,309 139,335 RMT002 Tree Planting 152,620 97,364 55,256 ' RMT004 Internal Service Charge to General Fund 87,000 87,000 RMT005 Street Furniture -Streetscape 20,000 19,114 886 RMT006 Black Gore Creek Sand Mitigation 55,978 50,000 5,978 ' RMT007 Bear Proof Trash Containers 17,000 17,000 - RMT008 Donovan Park Operating Costs 67,500 67,500 RPA001 Property Acquisition 500,000 - 500,000 RPD005 Donovan Park -Lower Bench 3,313,155 2,997,963 315,192 ' RPD006 Whitewater Park 117,000 98,713 18,287 RPD008 Red Sandstone Soccer Field 146,052 143,116 2,936 RPD009 Lionshead Park 100,000 - 100,000 ' RP1001 Playground Safety Improvements 85,000 70,651 14,349 RP1003 Irrigation Control 175,951 26,231 149,720 RPT003 North Trail 42,739 42,739 - RPT007 Trailhead Signs/Development 144,911 104,546 40,365 ' RSS001 Village Streetscape 300,000 115,468 184,532 Other 75,000 51,509 23,491 Total 5,854,563 4,220,490 1,634,073 n fl ' The accompanying notes are an integral part of these financial statements. 35 1 1 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Statement of Revenues and Expenditures -Budget (GAAP Basis) and Actual For the Year Ended December 31, 2002 (With Comparative Actual Amounts for 2001) 2002 Revenues: ' Business licenses Interest on investments Total Revenues Expenditures: Vail Local Marketing District Vail Chamber & Business Association ' Administration fee Total Expenditures ' Excess of Revenues Over Expenditures t Variance Amended Favorable Budget Actual (Unfavorable) Actual 336,700 310,692 (26,008) 318,284 - 3,875 3,875 3,789 336,700 314,567 (22,133) 322,073 319,865 295,158 24,707 60,000 - - - 240,000 16,835 15,534 1, 301 15,914 336,700 310,692 26,008 315,914 - 3,875 3,875 6,159 The accompanying notes are an integral part of these financial statements. 36 1 Debt Service Fund ' The Debt Service Fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment. 1 1 [] [] ~~ Town of Vail, Colorado ' Debt Service Fund Comparative Balance Sheet December 31, 2002 and 2001 ' Assets: Equity in pooled cash and investments Total Assets Liabilities and Fund Equity i Liabilities: Accounts payable Total Liabilities Fund Equity: Fund balance ' Reserved for retirement of bond indebtedness = Total Fund Equity Total Liabilities and Fund Equity 1 1 1 1 1 2002 59,165 59,165 225 225 58, 940 58,940 59,165 The accompanying notes are an integral part of these financial statements. 37 2001 132,173 132,173 225 225 131,948 131,948 132,173 Town of Vail, Colorado Debt Service Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance For the Years Ended December 31, 2002 and 2001 1 Revenues: Interest on investments 1 Total Revenues Expenditures: Bond Issues: Principal I nteresf Fiscal agent fees Refunding bonds issuance costs Total Expenditures (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): 1 Operating transfer in Proceeds of refunding bonds Payments to refunded bonds escrow Total Other Financing Sources (Uses) (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) Fund Balance -January 1 Fund Balance -December 31 I 2002 2, 322 2001 18,082 2,322 18,082 1, 310, 000 830,356 10,185 204,493 2, 355, 034 (2,352,712) 2,075,211 8, 970, 093 (8,765,600) 2,279,704 (73,008) 131,948 58, 940 The accompanying notes are an integral part of these financial statements. 38 1,235,000 1,082,921 1,523 2,319,444 (2,301,362) 2,262,958 2,262,958 (38,404) 170,352 131,948 Town of Vail, Colorado Debt Service Fund Statement of Revenues, Expenditures and Other Financing S ources (Uses) Budget (GAAP Basis) and Actual ' For th e Year ended December 31, 2002 (With Comparative Actual Amounts for 2001) 2002 2001 Variance Favorable Budget Actual (Unfavorable) Actual Revenues: Interest on investments - 2,322 2,322 18,082 Total Revenues - 2,322 2,322 18,082 Expenditures: Bond Issues: Principal 1,310,000 1,310,000 - 1,235,000 Interest 1,012,244 830,356 181,888 1,082,921 Fiscal agent fees - 10,185 (10,185) 1,523 Refunding bonds issuance. costs - 204,493 (204,493) - ' Total Expenditures 2,322,244 2,355,034 (32,790) 2,319,444 (Deficiency) of Revenues 1 Over Expenditures (2,322,244) (2,352,712) (30,468) (2,301,362) Other Financing Sources (Uses): Operating transfer in -Capital Projects Fund 2,328,929 2,075,211 (253,718) 2,262,958 Proceeds of refunding bonds 8,970,093 8,970,093 Payments to refunded bonds escrow - (8,765,600) (8,765,600) Total Other Financing Sources (Uses) 2,328,929 2,279,704 (49,225) 2,262,958 Excess (Deficiency) of Revenues and Other Financing Sources Over r Expenditures and Other Financing (Uses) 6,685 (73,008) (79,693) (38,404) ' The accompanying notes are an integral part of these financial statements. 39 1 Internal Service Funds ' Internal Service Funds are used to account for the financing of goods or services provided by one. department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. The Town has the following Internal Service funds: Heavy Equipment Fund -This fund is used to account for the repair and maintenance costs and purchase of Town vehicles and equipment, excluding buses and fire trucks. Operating costs, including depreciation costs, are charged to user departments and projects based on actual miles driven multiplied by a predetermined rate per mile. Health Insurance Fund -This fund is used to account for the health insurance plan provided by the Town to its employees. The premiums charged are allocated to the Town's funds that have employees covered by the health insurance plan. Dispatch Services Fund This fund is used to account for the operations, including depreciation, of all emergency dispatch services within Eagle County, Colorado. User entities are charged based on ' budgeted estimates. t Town of Vail, Colorado ' Internal Service Funds Combining Balance Sheet December 31, 2002 (With Comparative Totals for 2001) t Total Heavy Health Dispatch Equipment Insurance Services Fund Fund Fund 2002 2001 Assets: Equity in pooled cash and investments 410,877 894,986 327,555 1,633,418 2,150,255 Accounts receivable, net 8,536 52 500 9,088 3,938 Inventory 193,618 - 193,618 179,134 Prepaid expenses 18,971 42,894 _ 61,865 28,434 Property, plant and equipment (net of accumulated depreciation) 3,205,299 - 179,492 3,384,791 2,693,090 Total Assets 932 3 837 301 937 507 547 780 5 282 5 054 851 , , , , , , , , Liabilities and Fund Equity: Liabilities: Accounts payable 122,837 178,172 14,358 315,367 518,337 Accrued wages & benefits 76,776 2,685 92,112 171,573 137,700 Total Liabilities 199,613 180,857 106,470 486,940 656,037 Fund Equity: Contributed capital 1,808,016 - 410,019 2,218,035 1,176,679 Retained earnings: Reserved for health insurance - 757,075 - 757,075 549,502 Unreserved (deficit) 1,829,672 (8,942) 1,820,730 2,672,633 Total Fund Equity 3,637,688 757,075 401,077 4,795,840 4,398,814 ' Total Liabilities and Fund Equity 3,837,301 937,932 507,547 5,282,780 5,054,851 u ' The accompan in notes are an inte ral art of these financial statements. Y 9 9 P 40 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings For the Year Ended December 31, 2002 (With Comparative Totals for 2001) Heavy Equipment Fund Operating Revenues: Intergovernmental revenues - Charges for services 1,667,484 Insurance reimbursements 31,059 ' Other 875 Total Operating Revenues 1,699,418 ' Operating Expenses: Operations 1,409,762 Depreciation 589;994 1 Health claims and premiums Total Operating Expenses 1,999,756 Operating Income (Loss) (300,338) Non-Operating Revenues: 317 19 Interest income , Gain on disposition of equipment 37,361 1 Total Non-Operating Revenues fer T i 56,678 660) (243 rans ng Income (Loss) before Operat , Operating Transfers: 000) (650 ' Operating transfer out , Net Income (Loss) (893,660) ' Retained Earnings (Deficit) -January 1 2,723,332 Retained Earnings (Deficit) -December 31 1,829,672 1 Totals Health Dispatch Insurance Services Fund 2002 2001 Fund _ 285,640 285,640 285,640 618,358 1 1,097,134 4,382,976 4,101,347 , _ _ 31,059 30,220 . 875 1,172 358 618 1 774 382 1 4,700,550 4,418,379 , , , , _ .1,271,937 2,681,699 2,672,031 _ 80,319 670,313 626,163 421,682 1 - 1,421,682 1,350,014 , 682 421 1 256 352 1 4,773,694 4,648,208 , , , , 676 196 518 30 (73,144) (229,829) , , 897 10 1.1,239 41,453 91,264 , _ _ 37,361 630,988 897 10 239 11 78,814 722,252 , , 207,573 41,757 5,670 492,423 _ _ (650,000) - 207,573 41,757 (644,330) 492,423 502 549 699) (50 3,222,135 2,729,712 , , 075 757 942) (8 2,577,805 3,222,135 , , ' The accompanying notes are an integral part of these financial statements. 41 1 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2002 (With Comparative Totals for 2001) Cash Flows From Operating Activities: Cash from other funds Other receipts of cash Cash paid for goods and services Cash paid to employees Net Cash Provided by Operating Activities Cash Flows from Non-capital Financing Activities: Cash (to) other funds Net Cash (Used) by Non-capital Financing Activities Heavy Health Dispatch Equipment Insurance Services Fund Fund Fund Totals 2002 2001 662,392 1 1,441,080 1,096,759 4,200,231 3,698,089 , 934 31 177,595 285,640 495,169 908,960 , (1,128,812) (1,428,362) (433,009) (2,990,183) (2,410,590) (506,260) (13,046) (810,903) (1,330,209) (1,245,969) 59,254 177,267 138,487 375,008 950,490 (650,000) - - (650,000) - (650,000) - - (650,000) - Cash Flows From Capital and Related Financing Activities: 23 381 211,666 Sale of fixed assets rcthase of fixed assets P 23,381 (298,189) - (8,490) (306,679) (837,949) u Net Cash (Used) by Capital and Related Financing Activities (274,808) - (8,490) (283,298) (626,283) Cash Flows from Investing Activities: 317 19 10,897 11,239 41,453 91,264 Interest received , 317 19 897 10 11,239 41,453 91,264 Net Cash Provided by Investing Activities , , Net Increase (Decrease) in Cash and Cash Equivalents (846,237) 188,164 (508,764) (516,837) 415,471 114 7 822 706 319 186 2,150,255 1,734,784 Cash and Cash Equivalents -January 1 , 1,25 , , Cash and Cash Equivalents -December 31 410,877 894,986 (322,445) 1,633,418 2,150,255 Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities: Operating Income (Loss) (300,338) 196,676 30,518 (73,144) (229,829) Adjustments: 994 589 - 80,319 670,313 626,163 Depreciation (increase) decrease in accounts receivable , (5,091) 317 (375) (5,149) (14 484) 188.671 (10,164) (Increase) decrease in inventory (14,484) 694 - (34 125) - , (33,431) 118,440 (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable (223,014) , 11,714 8,330 (202,970) 256,588 621 rease (decrease) in accxued wages and benefits I 11,493 2,685 19,695 33,873 nc 592 359 (19,409) 107,969 448,152 1,180,319 Total Adjustments , 254 59 177 267 138,487 375,008 950,490 Net Cash Provided by Operating Activities , , Non-Cash Investing Activity: d 972 435 - 82,901 1,055,336 71,859 Acquisition of equipment contributed by another fun , The accompanying notes are an integral part of these financial statements. 42 1 Town of Vail, Colorado Internal Service Funds Heavy Equipment Fund Statement of Revenues and Expenses -Budget (Non-GAAP Basis) and Actual With a Reconciliation to GAAP Basis For the Year Ended December 31, 2002 (With Comparative Actual Amounts for 2001) 2002 Variance Amended Favorable Budget Actual (Unfavorable) 1,446,619 1,301,493 (145,126) 181,913 365,991 184,078 41,027 31,059 (9,968) ' Operating Revenues: Operating charges Replacement charges Insurance reimbursements Other Total Operating Revenues ' Operating Expenses: Vehicle maintenance and fuel Capital outlay Total Operating Expenses Operating (Loss) Non-Operating Revenues: Interest on investments Sale of assets Total Non-Operating Revenues ' Income (Loss) before Operating Transfer Operating Transfers: Operating transfer out - Capital Projects Fund ' Net (Loss) -Non-GAAP Basis Book value of retired equipment ' Accrued vacation Depreciation Assets purchased ' Net Income (Loss) -GAAP Basis 1,669,559 1,605,422 327,100 1, 932, 522 (262,963) 20,000 55,700 75,700 (187,263) (650,000) (837,263) 875 1,699,418 1,412,210 295,741 1,707,951 (8,533) 19,317 37,361 56,678 48,145 (650,000) (601,855) (589,994) 298,189 (893,660) 193,212 31, 359 224,571 254,430 (683) (18,339) (19,022) 235,408 235,408 The accompanying notes are an integral part of these financial statements. 43 1,274,231 403,026 30,220 1,172 1,708,649 1, 371, 567 844,480 2,216,047 (507,398) 52,175 211,665 263,840 (243, 558) (243,558) 419,323 540 (542,239) 837,949 472,015 ' Town of Vail, Colorado Internal Service Funds Health Insurance Fund ' Statement of Revenues and Expenses -Budget (GAAP Basis) and Actual For the Year Ended December 31, 2002 (With Comparative Actual Amounts for 2001) Operating Revenues: Insurance premiums Total Operating Revenues Operating Expenses: Health claims Premiums Administrative fees ' Short-term disability payments Total Operating Expenses ' Operating Income (Loss) Non-Operating Revenue: ' Interest on investments Net Income -GAAP Basis 2002 2001 Variance Favorable Budget Actual (Unfavorable) Actual 1,643,214 1,618,358 (24,856). 1,393,325 .1,643,214 1,618,358 (24,856) 1,393,325 1, 505,234 1,159,826 345,408 1,111,463 148,730 220,102 (71,372) 183,431 - 26,000 (26,000) 25,000 23, 000 15,754 7,246 30,120 1,676,964 1,421,682 255,282 1,350,014 (33,750) 196,676 230,426. 43,311 33,750 10,897 (22,853) 28,795 - 207,573 207,573 72,106 The accompanying notes are an integral part of these financial statements. 44 ' Town of Vail, Colorado Internal Service Funds Dispatch Service Fund Statement of Revenues and Expenses -Budget (Non-GAAP Basis) and Actual t With a Reconciliation to GAAP Basis For the Year Ended December 31, 2002 (With Comparative Actual Amounts for 2001) ' Operating Revenues: Intergovernmental revenue Charges for services Total Operating Revenues ' Operating Expenses: Salaries and benefits Operating expenses Capital outlay Total Operating Expenses ' Operating Income Non-Operating Revenue: Interest on investments Net Income -Non-GAAP Basis ' Accnaed vacation Depreciation Assets purchased 1 Net Income (Loss) - GAAP Basis 2002 Variance Amended Favorable Budget Actual (Unfavorable) Actual 285,640 285,640 - 285,640 1,096,714 1,097,134 420 1,030,765 1,382,354 1,382,774 420 1,316,405 1,180,804 1,130,883 49,921 1,128,328 174,471 141,054 33,417 173,731 - 8,490 (8,490) - 1,355,275 1,280,427 74,848 1,302,059 27,079 102,347 75,268 14,346 - 11,239 11,239 10,294 27,079 113,586 86,507 24,640 7,586 (80,319) (83,924) 8,490 - 41,757 (51,698) The accompanying notes are an integral part of these financial statements. 45 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Trust and Agency Funds Trust funds are used to account for assets held by the government in a trustee capacity. Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or other funds. The Town has the following Trust funds: Pension Trust Fund -This fund is used to account for the accumulation of resources for pension benefit payments to qualified Town employees. Deferred Compensation Fund -This fund is used to account for assets held for employees in accordance with the provisions of Internal Revenue Code section 457. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Assets: Cash and investments -Restricted Loans to participants Total Assets Fund Equity: Fund Balance: Reserved Total Fund Equity Total Liabilities and Fund Equity Town of Vail, Colorado Trust and Agency Funds Combining Balance Sheet December 31, 2002 (With Comparative Totals for 2001) Totals Expendable Trust Deferred Pension Compensation t T Plan 2002 2001 rus 24,431,835 2,319,243 26,751,078 29,319,355 848 213 - 213,848 199,747 , 683 645 24 319,243 2 26,964,926 29,519,102 , , , 645,683 24 2,319,243 26,964,926 29,519,102 , 683 645 24 243 319 2 26,964,926 29,519,102 , , , , 683 645 24 2,319,243 26,964,926 29,519,102 , , The accompanying notes are an integral part of these financial statements. 46 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Town of Vail, Colorado Pension Trust Fund Comparative Statement of Revenues, Expenses and Changes in Fund Balance For the Years Ended December 31, 2002 and 2001 Operating Revenues: Employee contributions Employer contributions Investment income (losses) Total Operating Revenues Operating Expenses: Professional fees Benefits paid Total Operating Expenses Net (Loss) Fund Balance -January 1 Fund Balance -December 31 2002 2001 72,663 30,887 1,710,419 1,668,338 (2,219,918) (1,499,936) (436,836) 199,289 67, 952 1,647,430 1,715,382 (2,152,218) 26,797,901 24,645,683 65,450 1,643,177 1,708,627 (1,509,338) 28,307,239 26,797,901 The accompanying notes are an integral part of these financial statements. 47 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Town of Vail, Colorado Expendable Trust Fund Deferred Compensation Plan Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance For the Years Ended December 31, 2002 and 2001 Revenues: Contributions Investment income (losses) Total Revenues Expenditures: Professional fees Benefits paid Total Expenditures (Deficiency) of Revenues Over Expenditures Fund Balance -January 1 Fund Balance -December 31 2002 2001 265,800 264,705 (226,025) (166,549) 39,775 98,156 24,272 417,461 441,733 (401,958) 2,721,201 2,319,243 20,427 353,593 374,020 (275, 864) 2,997,065 2,721,201 The accompanying notes are an integral part of these financial statements. 48 Li C u 0 General Fixed Assets Account Group Town of Vail, Colorado Schedule of General Fixed Assets - By Function December 31, 2002 1 Improvements other than ' Total Land Buildings Buildings Equipment General government 28,265,072 24,974,209 2,065,227 460 488 4 344,859 291,841 880,777 1,973,608 Public safety 6,753,909 , , = 1,453,442 190,626 Public works 1,644,068 18,906 7,233,852 Transportation 7,252,758 387 387 - 23 1,828,405 1,015,132 Parking 26,230,924 , , _ 52,354 Facility maintenance 52,354 _ 051 353 4 21,794 Housin 9 4,374,845 , , _ 604 562 2 165,345 1,088,221 Libra ry 3,816,170. 393 759 4 , , 4,326,420 - 253,124 179,849 Recreation , , Total General Fixed Assets 83,149,493 24,974,209 41,183,149 4,377,716 12,614,4 ,. 1 C 0 The accompanying notes are an integral part of these financial statements. 49 ~~ 'I 1 General Long-Term Debt Account Group General Obligation bonds: Sales tax revenue bonds: Town of Vail, Colorado Comparative Schedule of General Long-Term Debt December 31, 2002 and 2001 Series 1992A Series 2002A Series 19926 Series 1998A Series 19988 Series 20026 Capitalized lease agreements ' Accrued vacation pay Total Amount available and to be provided for 1 payment of long-term debt: Amount Available: From Debt Service funds To be Provided: From sales taxes and other sources Total 2002 2001 - 4,200,000 3,205,000 - 8,760,000 735,000 5,570,000 144,854 714,752 19,129,606 5,570,000 8,760,000 735,000 282,887 641, 598 20,189,485 58,940 131,948 19,070,666 20,057,537 19,129,606 20,189,485 The accompanying notes are an integral part of these financial statements. 50 Town of Vail, Colorado Schedule of Future Debt Service Requirements Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A December 31, 2002 Original principal issue of $8,760,000, with interest rates ranging from 4.25% to 4.45%, with June and December coupon dates. Bonds maturing December 1, 2009 and thereafter are subject to redemption at the option of the Town, in whole or in part, on December 1, 2008 or thereafter at a redemption price equal to the principal amount redeemed, plus accrued interest to the redemption date. Year Principal Interest Total 2003 386,628 386,628 2004 = 386,628 386,628 2005 - 386,628 386,628 2006 - 386,628 386,628 ' 2007 985,000 386,628 1,371,628 2008 1,425,000 344,766 1,769,766 2009 2010 1,485,000 1, 550, 000 283,490 218,150 1,768,490 1,768,150 2011 1,625,000 149,176 1,774,176 2012 1,690,000 76, 050 1,766, 050 ' 772 004 3 11 764 772 8,760,000 , , , , ' The accompanying notes are an integral part of these financial statements. 51 Town of Vail, Colorado Schedule of Future Debt Service Requirements Taxable Sales Tax Revenue Refunding Bonds, Series 19988 December 31, 2002 Original principal issue of $735,000, with coupon interest rates ranging from 6.00% to 6.05%, with June and December coupon dates. The bonds are not subject to redemption prior to maturity. Year Principal Interest 2003 - 44,288 2004 - 44,288 2005 - 44,288 2006 360,000 44,288 2007 375,000 22,688 735,000 199,840 Total 44, 288 44,288 44,288 404,288 397,688 934,840 The accompanying notes are an integral part of these financial statements. 52 Town of Vail, Colorado Schedule of Future Debt Service Requirements General Obligation Refunding Bonds, Series 2002A December 31, 2002 1 Original principal issue of $3,205,000, with coupon interest rates ranging from 3.0% to 4.0%, with December coupon dates. The bonds are not subject to redemption prior to maturity. Year Principal 2003 1,.140, 000 2004 1,295,000 2005 770,000 3,205,000 Interest 120,500 74,900 23,100 218,500 Total 1,260,500 1, 369, 900 793,100 3,423,500 The accompanying notes are an integral part of these financial statements. 53 Town of Vail, Colorado Schedule of Future Debt Service Requirements Sales Tax Revenue Refunding Bonds, Series 20026 December 31, 2002 ' Ori final rinci al issue of $5 570,000, with coupon interest rates ranging fro 9 P P m 2.5% to 4.0%, with June and December coupon dates. Bonds maturing June 1, 2012 and thereafter are subject to redemption at the option of the Town, in whole or in part, on December 1, 2011 or thereafter at a price equal to the principal amount redeemed, plus a redemption premium of 1 %, plus accrued interest to the redemption date. Year Principal Interest Total ' 2003 - 184,533 184,533 2004 310,000 183,283 493,283 2005 925,000 166,283 1,091,283 2006 1,395,000 131,408 1,526,408 2007 450,000 102,783 552,783 2008 465,000 87,630 552,630 2009 480,000 71,675 551,675 2010 495,000 54,031 549,031 2011 515,000 35,281 550,281 2012 535,000 15,873 550,873 ' 5,570,000 1,032,780 6,602,780 C The accompanying notes are an integral part of these financial statements. 54 Loca! Highway Finance Report ~i 1 1 1 1 The nubliC reDOrt burden Fnr this infnnnafifm enllectinn is eMimaf ~ to averaon 4Rf1 hrn anmially Form Approves OMB No. 2125-0032 Clty OL COUnty: Town of Vail, Colorado LOCAL HIGHWAY FINANCE REPORT YEAR ENDING December 31, 2002 This Information Prom The Records Of: Town of Vail, Colorado Prepared By: Judy Camp, Finance Director Phone: (970) 479-2118 I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE oca ITEM Motor-Fuel Taxes 1. Total recei is available 2. Minus amount used or collection ex nses 3. Minus amount used for non-hi wa ses 4. Minus amount used for mass transit emaln er us or 1 wa ses II. RECEIPTS FOR ROAD AND STREET PURPOSES oca eceipts rom ece~pts rom Motor-Vehicle State Highway- Federal Highway Taxes User Taxes Administration II. DISBURSEMENTS FOR ROAD AND STREET PURPOSES M AMOUNT ITEM AMOUNT A. Recei is from local sources: A. Local hi hwa disbursements: 1. Local hi hwa -user taxes 1. Ca ital outla from e 2 905,111 a Motor Fuel from Item I.A.S. 2. Maintenance: 1,285,729 b. Motor Vehicle from Item I.B.S. 3. Road and street services: c. Total a+b. a Traffic control o erations 269,477 2. General fund a ro riations 2,147,727 b. Snow and ice removal 648,730 3. Other local im osts from e 2 661,971 c. Other 4. Miscellaneous local recei is from e 2 - d. Total a throw h c. 918,207 5. Transfers from toll facilities 4. General administration & miscellaneous 154,917 6. Proceeds of sale of bonds and notes: 5. Hi hwa law enforcement and safe 789,889 a Bonds - Ori ' al Issues 6. Total 1 throw h 5 4,053,853 b. Bonds - Refundin Issues B. Debt service on local obli ations: c. Notes 1. Bonds: d. Total a + b. + c. - a Interest 7. Total 1 throw h 6 2,809,698 b. Redem tion B. Private Contributions c. Total a + b. - C. Receipts from State government 2. Notes: from e 2 1, 244,155 a Interest D. Receipts from Federal Government b. Redem tion from e 2 c. Total a + b. - E. Total recei is (A.7 + B + C + D) 4,053,853 3. Total (l.c + 2.c) - C. Pa ments to State for hi hwa s D. Pa ments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 4,053,853 IV. LOCAL HIGHWAY DEBT STATUS Show all entries at ar O enin Debt Amount Issued Redem tions Closin Debt A. Bonds otal - 1. Bonds efundin Portion otes ota - V. LOCAL ROAD AND STREET FUND BALANCE A. Be ' Balance B. Total Recei is C. Total Disbursemen D. Endin Balance E. Reconciliation 4,053,853 4,053,853 - Notes and Comments: rv><uvi ravr.~-~~o txev.i~-yob rtcr.vtvu~ ~Liliviv~ va~vl,nir. ~i~ca~ragc~ 55 t 1 STATE: Colorado LOCAL I3IGHWAY FINANCE REPORT YEAR ENDING (mm/yy): December 31, 2002 II. RECEIPTS FOR ROAD AND STREET PURPOSES -DETAIL ITEM A.3. Other local im osts: a. Pro a Taxes and Assessments AMOUNT ITEM A.4. Miscellaneous local recei ts: a. Interest on investments AMOUNT b. Other local im osts: b. Other 1. Sales Taxes c. Transfers 2. Traffic Fines d. Ca ital Credits 3. S ecific Ownershi Tax 5. From Cities/Counties 169,805 492,166 e. Sale of Assets f. Fees/Licenses/Permits .Service Performed 6. Total 1. throu 5. 661, 971 h. Refunds of Ex enditures c. Total a + b. 661, 971 (Carry forward to a 1) i. Total a. throu h h. (Carry forward to a e 1) ITEM C. Recei is from State Government 1. Hi hwa -user taxes AMOUNT 217 835 ITEM D. Recei is from Federal Governmen 1 FHWA fr I I D S AMOUNT 2. State eneral funds , . om tem . . . 2. Other Federal a encies: 3. Other State funds: a. Forest Service a. State bond roceeds b. FEMA b. Pro'ect Match c. HUD c. Motor Vehicle Re istration 26,320 d. Mineral Leasin d. CDOT ant-construct roundabout 1,000,000 e. Pa Lieu of Tax e. S eci f. Other Federal f. Total a. throu e. 1,026,320 .Total a. throu h f. - 4. Total 1. + 2. + 3. 1,244,155 3. Total 1. + 2. ) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES -DETAIL Carry forward to age 1) .1. Ca ital outla ON NATIONAL HIGHWAY SYSTEM a OFF NATIONAL HIGHWAY SYSTEM ) TOTAL (c a. Ri t-Of-Wa Costs b. En ineerin Costs c. Construction: 1 . Ca aci Im rovements 587,640 587,640 2 . S stem Preservation 317,471 317,471 3 . Safe And Other 4 . Total Construction 1 + 2 3 - 317,471 317,471 d. Total Ca ital Outla fines l.a. + l.b. + 1.c.4 - 905,111 905,111 ( Carry forwazd to e 1 otes an omments: +• vav.. r as ~~ r~-~av ~ACV.1L-70) Yrc r. V 1V U J bL111UN J Vt3JUL1;1~t': 56 1 1 Undertaking to Provide Continuing Disclosure Town of Vail, Colorado Issuer's Annual Report ' Update of Official Statement Tables to be Updated Tables I, III, and N December 31, 2002 ' TABLEI Debt Service Coverage 1998 1999 2000 2001 2002 ' Pledged Revenues 15,030,386 14,509,421 15,232,587 15,411,044 15,106,801 Maximum Annual Debt Service 2,324,453 2,324,453 2,324,453 2,324,453 2,324,457 Coverage Factor 6.47x 6.24x 6.55x 6.63x 6.50x TABLE III History of Town 4°h Sales Tax Receipts ' 1998 1999 2000 2001 2002 Sales Tax Collections .(see Note below) 15,030,386 14,509,421 15,232,588 15,411,044 15,106,801 ' Per Cent Increase n/a -3.47% 4.98% 1.17°k -1.97% Note: The reported Sales Tax Collections vary from the sales tax revenues reported in the Town's audited financial statements beca use one-time payments of sales tax on, for example, the sale of business assets or the settlement of a sales tax claim, are not included above. ' TABLE IV Monthly Comparison of Collections of Sales Tax ' 12-month Period Ended 12-month Period Ended December 31, 2001 December 31, 2002 Percent Change Current Year Current Year Current Year Month Month To Date Month To Date Month To.Date ' January 2,210,547 2,210,547 2,073,481 2,073,481 -6.2% -6.2% February 2,366,321 4,576,868 2,281,833 4,355,314 -3.6% -4.8% March 2,568,871 7,145,739 2,699,664 7,054,978 5.1% -1.3% April 1,043,431 8,189,170 870,875 7,925,853 -16.5% -3.2% May 448,234 8,637,404 414,248 8,340,101 -7.6% -3.4% June 751,439 9,388,843 657,707 8,997,808 -12.5% -4.2% July 1,157,867 10,546,710 1,044,966 10,042,774 -9.8°k -4.8% August 1,124,275 11,670,985 1,084,318 11,127,092 -3.6% -4.7% September 747,766 12,418,751 713,574 11,840,666 -4.6% -4.7% October 486,570 12,905,321 484,425 12,325,091 -0.4% -4.5% November 571,783 13,477,104 642,293 12,967,384 12.3% -3.8% December 1,933,940 15,411,044 2,139,417 15,106,801 10.6% -2.0% 1 „ Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables V and VI December 31, 2002 TABLE V Sales Tax Collections by Principal Sales Tax Generators 1998 1999 2000 2001 2002 Annual Sales Tax Paid by Ten Principal Generators 4,640,560 4,590,537 4,866,152 4,958,904 4,944,937 Total Annual Sales Tax Collected by Town 15,030,386 14,509,421 15,232,588 15,411,044 15,106,801 of Total Annual Sales Tax Collections Generated by Ten Principal Generators 30.9% 31.6% 31.9% 32.2% 32.7% TABLE VI Capital Projects Fund 2002 Actual/ Projected 2003 - 2006 2002 2003 2004 2005 2006 Revenues: Sales tax 4,926,729 5,765,425 5,750,000 5,750,000 5,750,000 Federal grants - 865,000 700,000 600,000 350,000 CDOT reimbursement 1,000,000 - - - - Interest on investments 186,474 - - - - Leases -Vail Commons 201,980 150,000 150,000 150,000 150,000 Buy-Down program - 1,000,000 - - - Sale of assets 8,857 - 750,000 - - Transfer in 650,000 - - - - Other 857,407 45,000 - - - Total Revenues 7,831,447 7,825,425 7,350,000 6,500,000 6,250,000 Expenditures: Equipment purchases 496,882 1,792,372 1,651,000 1,275,000 619,000 Maintenance 1,291,647 795,000 750,000 920,000 942,000 Street reconstruction 248,747 340,000 2,600,000 - - Buildings and improvements 1,756,173 955,000 859,000 700,000 900,000 Streetscape projects 257,330 - 330,000 825,000 455,000 Housing programs 54,293 1,100,000 100,000 100,000 100,000 Other improvements 130,455 347,500 2,700,000 350,000 700,000 Property acquisition 2,598,230 1,878,449 - - - Transfer to Debt Service Fund 2,075,211 - 2,294,099 2,315,299 2,317,324 Total Expenditures 8,908,968 7,208,321 11,284,099 6,485,299 6,033,324 Revenues Over (Under) Expenditures (1,077,521) 617,104 (3,934,099) 14,701 216,676 Beginning Fund Balance 10,020,101 8,942,580 9,559,684 5,625,585 5,640,286 Ending Fund Balance 8,942,580 9,559,684 5,625,585 5,640,286 5,856,962 58 0 Town of Vail, Colorado ' Issuer's Annual Report Update of Official Statement Tables to be Updated Table XIX December 31, 2002 TABLE XIX History of General Fund Revenues, Expenditures and Changes in Fund Balance ' 1998 1999 2000 2001 2002 Revenues: General sales taxes 8,298,951 8,113,554 8,760,101 8,968,544 10,337,852 Property and ownership taxes 2,078,382 2,157,937 2,243,281 2,606,648 2,799,910 Resort fees 2,043,210 1,710,061 1,961,723 2,145,587 2,344,921 Franchise fees 548,385 564,419 576,904 628,427 580,372 Penalties and interest ' on delinquent taxes 27,425 23,256 29,350 56,610 37,315 Licenses and permits 784,934 601,025 695,711 863,943 932,773 Intergovernmental revenues 1,618,425 1,438,282 1,376,493 1,388,625 1,349,364 Charges for services 663,163 212,488 2,217,293 2,729,847 3,162,454 ' Fines and forfeits 235,954 223,748 279,367 273,723 226,543 Interest 277,779 184,028 391,781 273,496 165,088 Rents 152,877 119,953 427,329 552,513 507,211 Other 148,296 338,322 161,024 438,857 280,277 ' Total 16,877,781 15,687,073 19,120,357 20,926,820 22,724,080 Expenditures: General government 4,722,337 4,892,726 4,342,608 4,348,205 4,586,115 ' Public safety 5,228,940 4,614,427 4,933,470 5,079,931 5,415,008 Public works and transportation 4,622,108 4,564,004 7,156,067 7,529,418 7,756,877 Economic development and community assistance 1,518,937 1,145,971 900,001 1,357,543 1,518,403 Municipal library 599,557 661,636 716,577 729,646 953,019 ' Total 16,691,879 15,878,764 18,048,723 19,044,743 20,229,422 Excess (Deficiency) of Revenues ' Over Expenditures 185,902 (191,691) 1,071,634 1,882,077 2,494,658 Other Financing Sources (Uses): Capital leases - 10,665 - - - Operating transfers out (1,026,162) (490,465) - (317,000) - Total (1,026,162) (479,800) (317,000) Excess (Deficiency) of Revenues Over Expenditures and Other Financing Sources (Uses) t (840,260) (671,491) 1,071,634 1,565,077 2,494,658 Fund Balance: Beginning 5,164,305 4,324,045 3,652,554 4,724,309 6,289,386 ' Residual equity transfers 121 Ending ,324,045 3,652,554 4,724,30 6, 8 , 8, 84,044 59 Town of Vail, Colorado Issuer's Annual Report ' Update of Official Statement Tables to be Updated Tables XX and XXI December 31, 2002 TABLE XX ' General Fund 2002 and 2003 Budget Summary and Actual Comparison 2002 ' Amended 2002 2003 Budget Actual Budget Revenues: General sales taxes 9,948,885 10,337,852 8,814,575 ' Property and ownership taxes 2,807,267 2,799,910 2,835,511 Resort fees 2,146,000 2,344,921 2,188,920 Franchise fees 598,175 580,372 626,500 Licenses and permits 725,400 932,773 864,000 Intergovernmental revenues 1,448,269 1,349,364 1,348,566 ' Charges for services 2,882,489 3,162,454 2,670,771 Fines and forfeits 194,350 226,543 197,000 Interest 185,000 165,088 106,000 Rents and other 806,713 824,803 731,934 ' Total 21,742,548 22,724,080 20,383,777 Expenditures: Town officials 1,224,266 1,068,300 949,354 ' Administrative 2,630,882 2,435,547 2,504,697 Community development 1,426,396 1,301,913 1,392,810 Public safety -Police 3,951,715 3,800,769 4,052,200 Public safety -Fire 1,675,039 1,614,239 1,584,419 ' Public works 2,384,194 2,367,310 2,520,943 Public transportation 3,020,348 2,771,594 2,814,170 Parking 467,318 464,470 551,239 Facility maintenance 2,270,455 2,251,600 2,186,964 ' Public library 829,143 854,922 806,668 Contributions and special events 1,267,852 1,298,758 1,128,246 Total 21,147,608 20,229,422 20,491,710 Excess (Deficiency) Over Expenditures 594,940 2,494,658 (107,933) Beginning Fund Balance 6,289,386 6,289,386 8,773,510 Ending Fund Balance 6,8 4,326 8,784, 44 8, 65,57 TABLE XXI Outstanding Revenue Obligations Outstanding Issue Principal Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A 8,760,000 Taxable Sales Tax Revenue Refunding Bonds, Series 19988 735,000 General Obligation Refunding Bonds, Series 2002A 3,205,000 Sales Tax Revenue Refunding Bonds, Series 20026 5,570,000 Total 18,27 0 60 MEMORANDUM To: Mayor Kurz and members of the Town Council: From: Greg Hall, Director of Public Works and Transportation Date: July 10, 2003 RE: Village and Meadow Drive Streetscape projects This memorandum provides an update and staff recommendation for the Village Core and Meadow Drive streetscape projects for 2004 and 2005. It contains the following items for your information and consideration: • Recommendation for Public Restrooms • Proposed Snowmelt Areas • Recommended 2004 - 2005 Construction Phasing • Proposed Project Funding • Private Development and Redevelopment Projects • Utility Cost Sharing • Construction Activity Periods • Advantages of the Recommended 2004 - 2005 Construction Project • Unresolved issues Recommendations for Public Restrooms The Public Restroom Coverage Diagram attached to this memo, illustrates the desired optimum spacing of public restrooms for the Village Core area, including East Meadow Drive based on an approximate radius of 300 feet. Three future public restroom locations are identified, including restrooms near International Bridge, Vail Road/Meadow Drive intersection, and East Gore Creek Drive at Mill Creek. Based upon analysis and public input, staff is recommending construction of the first additional public restroom at the International Bridge location, and be included in the 2004 - 2005 streetscape phasing package. Staff suggests the construction of this restroom be coordinated with and possibly constructed as part of the Sonnenalp Swiss Haus redevelopment project. Please note the $350,000 budget item is shown for 2005. If approved in this manner the actual construction timing would be dependent on the Swiss Haus redevelopment. Proposed Snowmelt Areas The Snowmelt Areas, attached to this memo, illustrates the proposed snowmelt pedestrian areas within the Village Core area. Snowmelt is desirable to increase pedestrian safety and ease of circulation and to decrease the noise and disruption caused by maintenance activities. The rational behind the proposed layout is to have a snow-free walking surface in all areas dedicated to pedestrian circulation, parking structure to ski yard, P3&J to Vail Road. Pedestrian areas in the village core are snowmelted building face to building face. Additional sections of the West Meadow Drive zone will be snowmelted by the Four Seasons resort and Vail Valley Medical Center. Zones which share the streetscape area with transit and other vehicles are snowmelted in the pedestrian areas only. Vehicular areas along Meadow Drive would Vail Village Streetscape Project Meadow Drive Streetscape Project Page 1 of 5 not be snowmelted. The snowmelt Areas diagram does not differentiate the separation which will exist between private and public snowmelt areas. Recommended 2004 - 2005 Construction Phasing The project team recommends four construction phases in 2004 and 2005 with an estimated project budget of $7,034,000. Graphic representations of the project areas are shown in the attached Construction diagrams. Construction will be divided into two separate seasons of each year to avoid critical retail sales periods. The consultant team will prepare construction documents for these four phases for bid in early January 2004. The consolidated bid process will enable the Town to save $50,000-75,000 in associated bid costs, will encourage more qualified contractors to bid the project, and allow the Town to take advantage of an favorable bid environment due to the current economic climate. By the winter of 2005-2006, utility upgrades, streetscape, and snowmelt would be complete on Wall Street, Founder's Plaza, Bridge Street, and Gore Creek Drive between Bridge Street and Wall Street. Utilities would be completed on Hanson Ranch Road. Mechanical systems would be upgraded at Children's Fountain. And, depending on the scheduling of private development, West Meadow Drive at the Four Seasons and East Meadow Drive at the Sonnenalp would be complete. Budgets shown are estimated and may be adjusted based upon selected final phases and construction timeframes. Spring 2004: • $606,000 Begin Wall Street • $539,500 Begin Founder's Plaza • $626,000 Subsurtace utility construction on Lower Bridge Street and Gore Creek Drive intersection to Wall Street. Fall 2004: • $606,000 Complete Wall Street • $539,500 Complete Founder's Plaza • $250,000 Children's Fountain Mechanical Systems • $450,000 Hanson Ranch Road utilities (Seibert - MiII Creek Chute) $3,617,000 Estimated 2004 project budget Spring 2005: • $373,500 Utility construction on Upper Bridge Street • $300,000 Public restroom adjacent to the Sonnenalp Swiss Haus Fall 2005: • $815,500 Finished streetscape on Upper Bridge Street • $798,000 Finished streetscape on Lower Bridge Street and Gore Creek Drive intersection to Wall Street. • $150,000 West Meadow Drive at Four Seasons Resort. • $1,032,000 East Meadow Drive at Sonnenalp Resort development $3,469,000 Estimated 2005 project budget Vail Village streetscape Project Page 2 of 5 Meadow Drive streetscape Project $7,086,000 Total 2004 and 2005 construction Proposed Project Funding Consideration is given to funding from the real estate transfer tax (RETT) and the capital improvements (Capital) budgets for 2004 and 2005. RETT funding for 2005 shows $1 million of RETT and $0.5 million from RETT fund balance. Year RETT Capital Total 2004 $ 1,750,000 $ 1,867,000 $ 3, 617, 000 2005 $ 1,500,000 $ 1,969,000 $ 3,469,000 Total $ 3,250,000 $ 2,367,000 $ 7,086,000 The town will realize approximately $761,000 of revenue from utility company reimbursements during the 2004 - 2005 period. Private Development and Redevelopment Projects Private development and redevelopment projects act as a trigger to town funded streetscape phases. The Construction Phasing diagram for Fall 2005 illustrates the anticipated timing of known redevelopment projects and the preliminary cost-sharing of streetscape improvements relative to those developments. • $ 508,200 East Meadow Drive at Sonnenalp Resort development • $ 340,500 West Meadow Drive at Four Seasons resort • $ 180,000 Hanson Ranch Road at P3&J development • $1,200,000 Willow Bridge Road between new and existing Checkpoints Utility Cost Sharing The estimated utility cost sharing for the 2004-2005 project is based on Town of Vail ROW sq. footage. Private property sq. footage is not included in total. Cost sharing is approximately $5.00 per sq. ft. • $ 27,625 Lower Bridge Street, 5,525 SF • $ 15,450 Intersection of Gore Creek Drive and Bridge Street, 3090 SF • $ 28,625 Upper Bridge Street, 5,725 SF • $ 49,250 Hanson Ranch Road bet. Seibert Circle & the Chute, 9,850 SF • $ 52,100 E. Gore Creek Dr. bet. Bridge St. & the Chute, 10,420 SF • $ 17,000 W. Gore Creek Dr. bet. Bridge St. & Children's Fountain, 3,400 SF $ 190,050 Total Vail Village Streetscape Project Page 3 of 5 Meadow Drive Streetscape Project Construction Activity Periods Restricted Construction Activity (Surveying, utility locates, mobilization, and construction activity limited to isolated areas with minimal impact) • 2 weeks before end of ski season to end of ski season • June 20 to July 1 • August 15 to September 8 No Construction Activity • July 1 to August 15 • November 15 to two weeks prior to ski season end Maximized Construction Activity (within the limitations previously established for "hours of outside construction activity") • End of ski season to June 20 • September 8 to November 15 Advantages of the Recommended 2004 - 2005 Construction Project The proposal for streetscape construction and funding stated above is advantageous to the Town in several ways. • Completes a significant portion of needed utility upgrades and desired streetscape improvement in a 2 year timeframe. • Addresses the fundamental areas in need of snowmelt pedestrian areas and provides for snowmelt connections to be made and extended into the Village Core in the first phase. • Helps to revitalize the Village Core by creating truly special areas. • Allows necessary mechanical improvements to Children's Fountain. • Provides a needed restroom for both the Village Core and East Meadow Drive. • Provides a coordinated phasing that minimizes impacts to business and tourism. • Begins in the middle and works outwards, minimizing reconstruction required. • Provides for good coordination and scheduling efforts with private development and redevelopment. The proposal is, however, not without some cost. It lowers fund balances in both the RETT and General Fund. accounts and ties up the majority of available Capital and RETT funds for the 2 year period. Unresolved Issues At their meeting on July 10, 2003 the Council Committee and Design Team discussed two primary issues which are unresolved at this time. • Vehicular traffic patterns through the Village relative to the possible relocation of Checkpoint Charlie. • The validity of the proposed construction activity periods considering the overall cost of the project and amount of disturbance caused by the construction activity. Vail Village streetscape Project Page 4 of 5 Meadow Drive streetscape Project Staff will continue to work on these issues with the business and development interests involved and bring a proposal back to the council at the earliest opportunity. Resolution of these issues should not impact the recommended 2004 - 2005 Construction phasing proposed. 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ZO ~ Z ~ ~ ~ ~~ o p ~~ ~O Ocn a ~~ i~ W o \ it L1J I~ ~ l J ,_` ~ :1 / _ ~ ;~ c-~J _, ~ ~~ ,,_ ~~ ,, ~ ~ o,', i ;' G~ ~ -a_i~ ~i ~i ~ i~ i~ ~~ ~ i iii i ~~ ~ ~i i i ~~ i i ~ ~ ii ~ ~ ,~~ ,- ~, ,,, ~, ~, ~~ ~~, ~, ~, ,, ,, i w ~ ~ ~ ~ ~ ~ Y W W U w o ~ ~ U CO W ~ ~ W O ~ U ~ F- ~ ~ Q W z O U z 0 0 0 N Z_ d N ~ ' '. N ~ H w ~ Z d z ~ ~~ W ~ ~ i~ j ^ ti O m W ~ / Z / > ; ~~ ~~ 0 o Oa ~%''/ ~ / 2i o O ~ w W Q ~ ~~ ~ • / ~ ~ ~'~-~ ~ w U O % & (I ~LJ~i / H Z ~ 2 Z m ~ ((~~~~~~ w ~ ~ ~ ~ C__ ~ l / ~~_ ~ ~, P~1~a ~\~ I ~~~~>~~ ~~, ,~ U/ o ~~ ~ ~ °. J~' .L--'-'L. 1~ avoa~~~ ~~ ._ 'I n / / ~J,~ 1~, ~~~ _~ ~~ ~.~ ~~~ ~ \II f ~ / ' /.. ~ ` j / j. "~. `~ ~ / ~ ^. ti ~~~~ i ~ ~ l~ _~ - ~ ~~ ~1 ~ ~ - /~ ~~ ~ \ ~~- % ~C- +. J 4_`_ ~`II \ 1 - ~~~%/ / Ir- ~ [ II '~, ~ M ~;-. ~ Cb ~ ~~ ~ ;i ~~ °~ i II i i °~lii ~ _ i ~ ~~i i ~~~ r ~ ~ i ~; ~~ ~ ~, -~ I ,x I ~,~ I, ,; II~ I • ~ ~; ''I • ~~ ~. I ~/ k-" • i ~~ ~ ~~ ~~ i ~ ~ ~r i~ i~ ~ rr i H ^ W 2'~n ^W U` ~ ~~ W f-~ 00~ pQ Y~ W oN ~ Q Q ^ ~ U ~ ~ ~ OJU z° Uw a~ O°o O ~Z ~~ Q~ °~U jN ^ O w w ~ ~ ~ ~ w ~ Y ~ Z ~ ~ ^ m U d O ~ ~ W ~ Z J 2 W Q ~ U > 2 > w ~ w / ~ ~ i_, "' - ~\ 1 -\, ~~ A ~ Z ~ > /~ J w ~~'~1'+'J~ ~ O N ~~ >Q ~ ~ Z Z O _~ (-'~ W O W O W H ^ a° ~~ T~-~ I i Q U Q~ Q w Q ~ >w° ~ ^ o ~ w ~ I w~ U~ ~ U ~ ~ W ~ ~ O ~ [OZ ~Z ~~ > O ~ ~ /~ W w ~ w ^ °) ~ '~. j 1 ... _ ; ~` ~ /; ;. Z U H Z O O N J J LaL O t: ~ :~ ~ ~: ~~ y To: Vail Town Council From: Conference Center Advisory Committee Staff: Russ Forrest Date: August 5, 2003 Subject: Conference Center Market and Business Plan Consultant Selection PURPOSE The purpose of this discussion is to review the recommendation of the Conference Center Advisory Committee on what consulting firm should be selected to prepare a market analysis and business plan for the conference center. The Town Council is being requested to review the recommendation and provide direction to the Town Manager on moving forward with contract negotiations. Z. BACKGROUND The Town of Vail voters approved a ballot initiative in November of 2002 for a dedicated lodging and sales tax to pay for a conference center. The ballot was not specific to location of the conference center. At the December 3, 2002 Town Council Meeting, staff was directed to create a design, build, operate request for proposals. In addition, the Town Council directed staff to create an "owners" representative request for proposals that would provide design and construction services along with consultation on operational planning for the conference facility. On December 17, 2002, the Town Council asked staff to stop work on issuing RFPs until such time as a real estate contract was in place for the Vail Resorts maintenance facility land. Vail Resorts indicated in the same general time frame that the conference center would need to pay for Vail Resorts employee parking which would be displaced on the Vail Resorts maintenance facility site, North Day lot, West Day lot, and Gondola building sites. Since that time, Vail Resorts has concluded that it needs 300 employee parking spaces to be provided on the Vail Resorts maintenance facility site by the conference facility budget. At the May 20, 2003 Town Council meeting, the Vail Town Council approved a motion to locate the conference center at the Town's charter bus lot site adjacent to the Lionshead parking structure and to initiate negotiations with Vail Resorts on their proposals to contribute financially to the construction of an additional plate of parking at the Lionshead Parking Structure. The Town Council also directed staff to move forward with the next steps for selecting an advisory committee. On June 2"d the Town Council directed staff to issue an RFP for consulting firms to prepare a market analysis and a business plan for the conference facilities. This RFP was issued and eight consulting firms responded to the RFP. Also On June 2"d the Town Council appointed an advisory committee to: 1) Provide recommendations to the Town Council on critical decisions related to the conference center, and 2) Interview and provide recommendations on consultants and other resources needed in the planning and development process for the conference center. 3. SELECTION PROCESS The Town received 8 proposals for completing a market analysis and business plan from: 1. HVS 2. Economic Planning Systems 3. CH Johnson 4. KPMG 5. Economics Resource Associates 6. CSL 7. PFK 8. Price Waterhouse Coopers The Advisory Committee developed a list of criteria and a matrix that was used in the review process (See Attachment A). After reviewing the 8 proposals the committee interviewed their three top candidates: 1. HVS, 2. Economic Planning Systems, and 3. CH Johnson The Committee also developed a list of questions (See attachment B) that were used in the interview process. Each team was interviewed for over an hour on July 29th, 2003. Also the teams were asked to prepare a cost comparison for each task in the RFP (See attachment C). 4. RECOMMENDATION The Conference Center Advisory Committee is recommending that the Town Council direct the Town Manager to enter into contract negotiations with HVS. The committee felt that any of the three teams could be very successful. However, HVS had the strongest capabilities in delivering a timely professional product that would honestly and clearly communicate the market demand for a conference facility in Vail and the operational considerations for a facility. The committee also felt this team delivered the greatest value for what was proposed in their scope of work. In the interview process, the committee was very interested in comparing the previous recommendations the consultant had made and the results of a project after it had been built. Also the committee asked detailed questions about projects the consultants had recommended not moving forward with and why. Prior to the interviews staff initiated reference checks on the three candidates and HVS had outstanding input from two references. Staff would like to continue to check references with other HVS clients after receiving direction from Council. 5. NEXT STEPS The proposed next steps include: 1) August 5th: Town Council directs the Town Manager to enter into negotiations with HVS on a contract for services. 2) August 5th -August 19th: The advisory committee and staff will negotiate a contract with HVS. 3) August 19th Council approval of the contract and authorization of funds to pay for the contract. 4) August 20th: Execute contract and begin work on the market analysis and business plan. 5) After the conclusions for market analysis are completed the advisory committee will share those conclusions with the Town Council. Attachments: A: Decision Matrix B: Questions C: Cost Comparison D. RFP E. List of Committee Members F: Proposals Attachment: A Evaluation Sheet for Conference Center Market Analysis & Business Plan Teams Rank each team for earh rrirarinn rrnm , _, n ,.,~~ti , n tie;..,, ,~ vera Overall experience in experience in doing _ doing market business Ability to studies for plans for Overall provide a Value Overall Cost of Cost of conference conference Quality of timely (CosUService Rank (Add Market Business Your Rank Firm/Team Name HVS International center center the Team roduct Received scores Anal sis Plan Subs Ex enses Total Cost Order Preference CH Johnson Consultin $ 52,000 $ 22,000 $ 6,000 $ 80,000 EPS $ 57,100 $ 52,900 $ 16,500 $ 126,500 $ 50,180 $ 28,320 $ 35,000 $ 4,500 $ 118,000 - ATTACHMENT B Vail Conference Center Questions for July 29th Interview A. Clarify the roles of the various members of your team. B. What do you believe are the pros and cons of moving forward with a conference center? C. How did your previous studies compare to the actual results of the project? D. What were the previous costs (fees) of other market analysis that you have worked on in the past. E. Would you reduce your cost because working for Vail has a marketing benefit for your company? F. How would you define an economically successful conference center? G. ,What original data will you generate versus depending on existing or historical information i.e. demand for a conference center? H. Are you aware of any opportunities to take advantage of tax benefits in linking a conference center and a hotel? I. What are the effects of the project if existing hotel rooms are converted to fractional/time share uses or condominiums? J. Is it reasonable to ask hotels to commit rooms before the project is built? K. What will be your approach in completing the market analysis with specific respect to soliciting input from conference planners? L. What conference center projects would be a good comparison to Vail? Also how will you identify failed conference centers that may be a good comparison? M. How will you determine operating costs and revenue potential in Vail Colorado? N. Do you have any major assumptions on the time to complete the project that we need to be aware of? O. Do you have any conflicts of interest? Will you benefit if this project moves forward? P. Elaborate on your approach to complete the business plan. What input will you need from this committee and or the Town? Q. What market analysis projects have you worked on that you recommended not moving forward with the project? R. Why should we hire you? ° ATTACHMENT C - HVS PHASE TASK COST TOTAL TIME hours Staff Time Hazinski/HVS " Sa'ovec/HVS Detlelsen/HVS O'Lear /HVS GritUHVS EsemanlLMN Reddin ton/LMN { g2~0/hour) ($200/hour) ($175/hour) ($150/hours ($90lhourl ($175/hour) ($175(hour) , A) Marke! Anal sis A.1: Lod in Review 2,282 13.5 "' 1.0 r-- - 12.0 1.0 A.2: Econ performance of other conference centers 3,fi51 21.5 1.0 19.0 1.0 A.3: Surve Conf Planners 9,000 61.5 1.0 29.5 31.0 A.4: Seasonal Demand 669 4.0 '_' 0.5 3.0 0.5 A.S: Economic Im act 7,400 39.0 2.0 35.0 2.0 A.6: Size of Center 5,000 6.0 0.5 1.2 0.5 2.0 2.0 A.7:+/- of a tar er conf censer 5,000 6.0 0.5 0.5 0.5 2.0 2.0 A.B: Reviev+ 01 closed centers 3,651 19.5 1.0 17.0 1.0 A.9:Market rowth 5,020 30.0 ` 1.0 27.0 1.0 A.10: Alternative to increase room ni hts 700 4.0 0.5 3.5 0.5 Draft Pre aration 200 3.0 '-: 0.5 3 Final Draft Pre aration 400 3.0 0.5 3 B) Bus(ness Plan 6.1: Proposed Physical ro ram 6,010 48.0 °.' 2.5 2.0 21.5 21 5 6.2 Refine ca ital bud et 1,010 43.U 2.0 2.0 19.5 . i9.0 B.3: Personel Needs 6,216 31.0 ' 11.0 19.0 1.0 B.4: 20 Year Bud et 1,110 6.0 0.5 5.0 0.5 B.5: Capital Replacement Bud et 5,000 28.0 ' ' 1.0 3.0 1.5 11.0 11.0 6.6: O erasion Deficit 2,015 11.0 -- 0.5 10.0 0.5 8.7: Hotel bookin ofic 2,200 16.G " 5.0 10.0 1.0 B.B: Proposed marketing plan and costs 2,146 15.0 4.0 10.0 1.0 6.9: Other cost to support center 1,110 5.0 :' 0.5 4.0 0.5 B.10: Finacial implications of o erationalfailure 1,110 5.G !' 0.5 4.5 0.5 B.11: Bond Pa menu 2,500 7.0 7.0 0.5 Draft Pre aration 200 3 0.5 2 Final Draft Pre aration 400 3 0.5 2.5 GRAND TOTAL 74,000 432 45 62 113 39 60 56 56 CH JOHNSON TOTAL TIME PHASE TASK COST hours Slaft Time Johnson! CHJC Summy! CHJC Listiowali/ CHJC Heauchamp,rCHJC O'Neall CW Schmidt/ CW Ward/ CW Hob BensoN RSHA Squadral ARC Hutl/ ARC ' :210 o0 g2er!.OD of 5n n0 $50.00 - $210.00 $200.00 $160.00 .. .. _. _. _ _ . - _ ..__ __- $125.00 $115.00 $81.00 - -_- _ ..... ~: . . . ~ A) Market Anal sis A.1: Lod in Review $3,315 23 ~" 4 $840 0 4 $600 0 0 0 0 15 $1,875 0 0 A.2: Econ performance of other conference centers $4,640 32 ' 4 $840 /2 $1,800 16 $2 000 , A.3: Surve Conl Planners $5,020 34.: 2 $420 4 800 12 $1,800 16 2 00 $ , 0 A.4: Seasonal Demand $1,770 12 ` 2 $420 4 $600 6 $750 A.S: Economic lm act $4,160 26:. 6 $1,260 i6 $2 400 , 4 $500 A.6: Size of Center $3,960 22 4 $840 6 $900 6 $t 260 6 $960 A.7:+/- of a tar er coot cemer' $2 920 18 ' 2 $420 B $1,200 q $840 4 $460 A.B: Review of closed centers $4,460 22 -'. 2 $420 16 $ 3,200 4 $840 A.9:Markel rowlh A 1D Alt i I $3,320 22 2 $420 16 $2,400 4 $500 . : ernat ncrease ve to room ni hts $2,780 16 ' 4 $840 4 $600 4 $840 4 $500 Draft Pre aration Fi l D ti f P $6,250 4G ~ 6 $1,260 B $ 1,600 10 $1,500 6 $300 4 $840 6 $750 na ra on t re ara $2,510 20 4 $840 4 $600 8 $400 2 $420 2 $250 $D B) Business 8.1: Proposed Physical Plan ro ram $11 760 64 - 4 $840 4 $600 B $1,680 24 $4,800 24 $3 840 H.2 Reline ca ital bud et $5,060 44 B $7,600 , 16 $1 040 20 $1 620 8.3: Personnel Needs $1,560 8 2 $420 2 $300 4 $840 , , 8.4: 20 Year Bud el $4,080 24 4 $840 16 $2,400 4 $840 8.5: Capital Replacement Bud el $2,660 16 4 $600 8 $1,600 q $460 B.6: O erasion Deficit $2,280 72 ~ 4 $840 q $600 4 $840 8.7: Hotel bookin tic $1 440 6 2 $420 4 $600 2 $420 B.B: Proposed markeliny plan and costs $2,100 14 4 $640 fi 1 260 8.9: Other cost to support , center $2,940 16 _ 8 1 600 4 840 4 $500 8.10: Financial implications of r o eralional failure $2,8110 16I 6 $1,260 8 $1,200 2 420 8.11: Bond Pa menls $4,080 $0 24 8 1,680 16 $2,400 Draft Pre aration $14,460 702 12 $2,520 12 $ 2,400 24 $3,600 24 $1,200 8 $1,680 10 $1,600 8 $1000 4 $460 Final Drall Pre aration $10 000 58 24 $5,040 8 $1,200 8 $400 i6 $3,360 um 67 112 48 786 46 82 40 40 As as ~n • -~ • ~~~~ y i f u,vw $z3,620.uu $9,600.00 $27,900.00 $2,300.00 $17,220.00 $8,000.00 $6,400.00 $10,fi25.OD $3,220.00 $1,620.00 A) Market Analysis B) Business Plan Task t Existing Vail Conference Markel $4,540 32'. Task 2 Existing Vail Group Business $7,800 68 Task 3 Survey of ColoradarRegional $8,300 80 Task 4 Competitive Facilities Evaluation $7,860 68 Task 5 Stale antl National Conference Profile $7,900 71 Task 6 Facility Utilization Forecasts $6,860 52 Task 7 Preliminary Building Program $10,940 BG Task 8 Economic and Fiscat Impacts $5,870 46 Task 9 Draft Reports $9,200 64 Subtotal $69,270 569 Task t0 Building Conceptual Plan $9,820 8E Task 17 Construction Budget $3,680 2f: Task 12 Capital Financing $3,830 2f Task 13 Preliminary Operating Plan $4,200 3c Task t4 Operating Prolorma $7,600 Sf Task i5 Project Refinements $3,760 32~ Task 16 Final Report and Presentation $11,330 BG Subtotal $44,220 340 4 8 12 B 8 8 8 20 12 12 4 8 8 8 20 16 16 4 8 16 8 8 8 8 8 i 8 16 8 16 8 8 7 4 16 16 8 8 12 16 16 24 16 4 6 8 24 8 0 8 16 24 8 8 26 88 140 40 80 64 44 43 24 16 4 8 6 8 24 40 4 4 4 16 6 8 8 4 8 8 16 8 16 12 12 8 4 4 4 8 12 8 24 12 8 8 6 6 8 22 72 54 24 48 6 0 0 38 52 24 Total $113,490 909 Direcf Costs $4,510 Total Project Bud et $118,000 Total Project Hours and Costs Economic & Planning Systems EPS, Alder Creek, RRC Associates, Melick Associates, Shaw Construction i, - ATTACHMENT D - Request for Proposals Development of a Market Analysis and Business Plan for the Town of Vail's Conference Facility June, 9 2003 1. .INTRODUCTION In November, 2002 the voters of the Town of Vail approved a dedicated revenue source to facilitate in the development of a world class Conference Center. A 1.2-acre site adjacent to the 1100 space Lionshead parking structure has been designated as the Conference Center site. It is in a strategically located position between the Lionshead and Vail Village commercial areas. It is anticipated that the new Conference Center will be a financially sound development that will boost year-round visits to the Town of Vail. The Town of Vail envisions aworld-class, sustainably designed conference center that is desired with no less than a 35,000 s.f. ballroom, associated breakout rooms, commercial kitchen facilities, and office spaces. The site for this conference center is located at 395 South Frontage Rd West. The Town envisions four phases for the development of the Conference Center. The initial phase will involve the creation of a business and operational plan for the conference center. The second phase would include creating a design that meets the programmatic and financial goals of the business plan. The design shall also comply with the applicable development regulations of the Town of Vail. The third phase of the work will include construction of the Vail Conference Center. The fourth and final phase includes the operation and maintenance of the facility. This RFP is intended to solicit proposals for the first phase of this project to complete a market analysis and business plan for the conference facility. Individuals/firms that have significant expertise in preparing market analysis and business plans for conference facilities are requested to respond to this RFP. It should be noted that any firm/individual selected to complete the market analysis and business plan shall not be considered for the operation contract for the facility. 2. PROJECT GOALS A. To provide a Conference Center that will allow groups of up to 3000 people to have events in the facility. B. A financially sound Conference Center with a well developed business plan. C. A Conference Center achieving the highest possible design and environmental standards in all aspects of the facility, its operation and maintenance. D. A requirement will be minimum LEEDs certification. E. A design maximizing the site utilization without compromising the above requirements. F. Design and construction of the facility that minimizes the long-term cost of operation and maintenance, while adhering to the high standards expected in Vail. 3. THE PROJECT A) Aworld-class, sustainably designed conference center is desired with associated breakout rooms, commercial kitchen facilities, and office spaces. B) Site is a 1.2 acre parcel of land owned by the TOV situated on the south side of I-70 adjacent to the Lionshead Parking structure. Site address is 395 South Frontage Road, Vail, Colorado. C) Site is surrounded by multiple utility, state and local right-of-way easements. D) Wet and dry utilities are available onsite. E) Access to the 1100 space parking structure needs to be maintained. F) The Town of Vail has a dedicated Lodging and Sales Tax to pay for the construction and subsidize operation of this facility. G) A market analysis was completed prior to the November 2002 election. This market analysis needs to be independently evaluated. H) It should be noted at the outset the TOV will not sell the subject property. 4. SCOPE OF SERVICE A. MARKET ANALYSIS The consultant shall complete an independent market analysis to verify previously prepared market analysis on the conference center. This market analysis shall include the following elements: 1. Independently reviewing the availability of lodging units in the Town 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. 2 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. Will smaller conferences impact existing hotel conference business. If so what is that impact. 7. An analysis of Vail's advantages and disadvantages in competing for larger conferences. $. 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. What would be the next most effective way or a more effective way of increasing room nights (while maintaining rates) without a conference center (i.e. marketing, special events ect). The consultant shall plan on preparing two drafts and receiving input from the Conference Center Advisory Committee and the Town Council prior to finalizing the final report. B. Business Plan After completing the market analysis the consultant shall work with the Conference Center Advisory Committee to develop a business plan. This plan shall include: 1. Proposed physical program that includes a verification that the spatial requirements fit on the site. 2. 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. 3. Specific personnel requirements for the facility, including security. 3 4. Detailed 20 year operational budget for the facility. This shall include specific estimates on revenue, costs, working capital and any subsidy that would be required. 5. A detailed capital replacement budget, including facility upgrades. 6. Proposed strategy for addressing operational deficits and tax revenue collections. 7. Requirements for hotel booking policies/agreements that are needed. 8. Proposed marketing plan and costs. 9. An analysis of the incremental costs to the TOV to support the conference center e.g. bus transportation, security, in-kind services. 10. An analysis of the financial impacts to the TOV if the conference center fails to attract sufficient demand and must be abandoned. What would be alternative uses if this occurs. 11. 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. The consultant shall plan on preparing two drafts and receiving input from the Conference Center Advisory Committee and the Town Council prior to finalizing the final plan. 5. THE CANDIDATE'S QUALIFICATIONS Please provide the following information about the employees your firm proposes for this project. Senior Project Member: • Current resume of the team leader. • Detail of specific experience completing conference center market analysis and business plans. • Include a list of projects completed by this individual. • Key qualifications that make this individual an ideal "fit" for the TOV and this project. Support Staff Members assigned to this project: • Current resume for support members. • Roles and responsibilities for each team member 4 Provide an organizational chart showing the proposed staffing of this project by your firm, and the relationship to the TOV, developer, design team and contracting team. 6. Proposal Submittal All submittals should include a letter of transmittal, a complete description of qualifications of the company and individuals who would complete the tasks outlined in this RFP. Fifteen (15) copies of the submittal should be delieverd to the Town. All correspondence and questions should be directed to: Russell Forrest Director of Community Development Town of Vail 75 Frontage Rd Vail, CO 81657 970-479-2146 email: russellQvail.net Specific submittal requirements include: A. Provide your firm's anticipated fee to perform the services described herein. B. Show a basis for calculating this fee, including anticipated staff time, by hours per week, devoted to this project, broken out by individual. C. Separately, show all associated reimbursable costs for providing these services (e.g. office space, phone, travel, reproduction, etc.). D. Provide itemized list and your proposed cost (either lump sum or hourly rate) for optional services that may be of benefit to the TOV but are not identified in the Scope of Work of this RFP. E. Provide the hourly rate schedule for individuals proposed in this project to be used if the TOV wished to increase the scope or frequency of services. 7. Schedule: 5 RFP issued: June 9, 2003 Proposal and cost estimate submittal deadline July 3, 2003 at 1:00 p.m. Interviews July 10th, 2003 Selection July 15th, 2003 8. General Conditions A. Limitations and Award: This RFP does not commit the Town of Vail to award or contract, nor to pay any costs incurred in the preparation and submission of qualifications in anticipation of a contract. The Town of Vail reserves the right to accept or reject all or any submittal received as a result of this request, to negotiate with all qualified sources, or to cancel all or part of the RFP. After a priority listing of the final firms is established, the Town of Vail will negotiate a contract with the first priority firm. If negotiations cannot be successfully completed with the first priority firm, negotiations will be formally terminated and will be initiated with the second most qualified firm and, likewise, with the remaining firms. B. Selection: Initial evaluation will be based upon the qualifications of the applicant. The Town of Vail reserves the right to not interview, and to make final consultant selection based upon the qualification statements and cost estimate. C. Eaual Emoloyment Oogortunity: The selected consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. 6 ATTACHMENT E - CONFERENCE CENTER OVERSIGHT COMMITTEE Affiliation Town Council Rod Slifer Committee Chair/Town Council Bill Jewitt Town Council Lodging (2) Stan Cope Lodge TowerNail Mtn. Lodge GM Dave Pease Marriott GM Retail/Business (2) Frank Johnson WCTB Merv Lapin Vail Securities At Large (2) Scott Proper Assistant VP West Star Bank Rick Scalpelio 9 Vail Road Vail Resorts (1) Bill Jensen COO Vail Resorts STAFF Russell Forrest Communicty Development Director Proposal to Perform a Conference Center Market Analysis and Business Plan Vail, Colorado July 2, 2003 _.:~ - - HUS International ~~~~ 445 West Frie, Suite 1-A, Chicago, Illinois 6Q~i10 iNrEaNnTioNaL Phone 312-587-9900 a Fax 312-587-9908 • www.husinternationaLcom co~vzzo~. ' ~-~ - - SPORTS & INTERNATIONAL ENTERTAllVMENT July 2, 2A03 C }u~~~;o, llhn~is 6016 LO ~1 } 787-c}q~~{~ ~ti4ti;ti~,h.~ri~34~~i~naii ~al_cnm ~ieiv 1"e~~k CiitFl }'1'3tlflfG~ BF~uhler 1~liejmi Mr. Russell Forrest Director of Community Development Town of Vail 75 Frontage Road Vail, CO $1657 Phone: 97079-2146 Email: russell@vail.net Re: Conference Facility Market Analysis and Business Plan Dear Mr. Forrest: Pursuant to your request, HVS Convention, Sports & Entertainment Facilities Consulting ("HVS"} is pleased to present this proposal for our services pertaining to a proposed conference facility in Vail,. Colorado. The Town of Vail ("TOV"} faces many challenges in its effort to develop a conference center. Planning challenges include defining the appropriate market niche for the proposed facility, testing its financial feasibility, creating a physical development plan, and financing the operations and construction of the project. The TOV needs to understand the costs, benefits and risks of conference center development and to communicate this understanding to the voters that have approved the dedicated lodging and sales taxes to pay for the project. ~_` t```" HVS is a firm that has studied and guided conference center and other public ,,, X11„„i,~~}, i ~;~ facility planning in throughout the world. We are not only experienced, but also „„ 't--~- trusted to bring impartial advice to the table. HVS is joined by LMN Architects f~},t,, ,,;~ who will play a supporting role in the physical planning of the facility. While the ,~,~~ ~ ,~ market and financial analysis will be the primary focus of this study, careful ~ < ~ ~' > physical planning is necessary to assure the facility program recommendations c°'~`'°r are feasible and that project cost estimates are reliable. tt~, ~<t ~t~t~ 1>~7~„ We are certain that we will be able to provide you with the precise mix of ti}t;t,E~. experience and stalls you will need for this engagement. Each of our principals ~ ~~,~,; x,,~h has experience in state and local government and hold advanced degrees in s.~~, r<,ta~, public policy. In your decision, we ask you to consider the experience and 1>~«°~~~~~ ;~u~~:, qualifications of our team that may distinguish us from the competition. • With ZO offices and 1$ divisions, HVS brings a wider range of resources available for analysis of this study than any of our competitors. • As the global leader in hospitality consulting, HVS combines specialized expertise in conference centers and tourism development. ' ~~ CONVE':~ITION SPORTS & INTERNATIONAL £NTEKTAllVMENT Page 2 • HVS is familiar with the conference center and hotel markets in Colorado, having performed hotel valuations of various hotels and resorts in Vail, as well as numerous hotel appraisals and valuations in Denver, Aspen, Glenwood Springs, Breckenridge, Winter Park, and Snowmass. HVS has also recently provided feasibility and economic impact studies of the recently financed headquarters hotel in Denver. We are currently studying a conference .center and hotel development for the City of Colorado Springs. • Finally, we guarantee the quality and timeliness of our work The attached proposal sets forth in further detail our team qualifications, describes the objectives and scope of the assignment, explains the methodology to be employed, provides an estimate of the time requirements, and the amount of professional fees for this assignment. We hope to have the opportunity to serve you. Very truly yours, Tti~.... ~J-.~.v Tom Hazinski Managing Director HVS Convention, Sports & Entertainment Facilities Consulting A Division of HVS International Enclosures HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal l Proposal to Perform a Conference Center Market Analysis and Business Plan Pursuant to your Request for Proposals ("RFP"), we are pleased to submit the following proposal of HVS Convention, Sports, & Entertainment Facilities Consulting (a division of HVS International) to perform a conference center market analysis and business plan for a proposed conference facility in Vail, Colorado. In addition to describing the background and qualifications of our team members, this proposal explains the methodology and approach to the scope of services and a fee proposal. HVS Convention, HVS Convention, Sports & Entertainment Facilities Consulting is a division Sports & Entertainment of HVS International, the leading global hospitality consulting organization, Facilities Consulting and is based in Chicago, Illinois. Our specialized staff has completed over 155 assignments throughout the world analyzing the feasibility of community involvement in convention centers, civic centers, stadiums, arenas, motorsports facilities, tourism attractions, and other development initiatives. Our clients include public facility authorities, economic development agencies, educational institutions, planning departments, municipal finance departments, convention and tourism agencies, developers, non-profit organizations, and non-governmental entities involved in publicly supported development projects. We have performed numerous tax revenue projections in support of publicly developed projects. Our studies appear in municipal bond offering statements and our staff has presented these studies to rating agencies, bond insurers and investors. While the majority of our clients are public entities, we also work with private developers and owners of conference centers, sports facilities, or entertainment developments. LMN Architects Supporting HVS on this project is LMN Architects ("LMN"), aSeattle-based architectural firm of 115 professionals, with particular expertise in the design of public assembly facilities, which include convention centers, performing arts facilities, and sports stadiums and arenas. A sound business plan requires HVS Comrentior, S s 6 Entertainment Facilities Consultin P sa12 requires awell-developed capital cost estimate. LMN will perform the ' physical planning work necessary to develop a reliable construction cost estimate. ' Since the formation of LMN in 1979, the firm has been a design participant in more than 100 public assembly projects, including 55 convention centers. These projects were typically developed as part of a larger urban plan that ' included adjacent hotels, retail, circulation links, public buildings, and civic open space. The LMN experience in convention centers and related public assembly facilities is extensive and ranges from the design of facilities solely ' dedicated to convention use to multi-purpose civic centers. In several projects LMN programmatically coordinated the needs and requirements for over a dozen different community user groups. t Pro~ct Comments HVS proposes to art as an independent feasibility consultant and advisor to Organizational Chart the TOV. We have no interest in the future operations or development of the conference center. While many potential ownership, developer and operator relationships would be possible for this project, the flow chart below shows one possible arrangement. We propose to have a direct relationship with the TOV and retain our independence through all project phases. The development team, (potentially consisting of a developer, construction manager and an architect HVS Convention, Sports £d Entertainment Facilities Consulting Proposal3 service provider) could report to a municipal corporation established for the purpose of owning and operating the conference center. HVS would provide development assistance directly to the TOV or to its Municipal Corporation. LMN would serve as a subconsultant to HVS and report to the City through HVS. Project Personnel: The following principals will be actively involved with this project. Their full HVS resumes are attached in an appendix to this proposal. Thomas Hazinski, Managing Director of HVS, has an advanced degree in public policy studies from the University of Chicago and 18 years of practical experience in the public sector and the consulting business. Tom is nationally recognized by rating agencies, bond insurers, and investors on Wall Street, as well as by clients throughout the country, for his expertise in public facility projects. Tom was recently invited to make a presentation to the Government Finance Officers Association (GFOA) at their 2003 annual meeting on the topic of today's challenges and opportunities in business and leisure tourism development. Furthermore, Tom also led the process to develop a business plan for a proposed new Raleigh /Wake County Convention Center and Hotel, and provided a full range of project assistance to the 26-member Wake County Steering Committee. This project was completed according to schedule and on budget. Detailed specific experience in complete conference center market analysis and business plans can be found in the "Relevant Experience' section on page 4. A complete list of his projects can be found in the Appendix. Tom will serve as project manager. Paul Sajovec, Senior Vice President of HVS, has over 8 years of experience in the analysis of various types of facilities. Paul has a masters degree in Public Administration from the University of North Carolina at Chapel Hill, where he specialized in urban redevelopment and public sports facility projects. Paul has managed numerous consulting engagements that involve convention, conference, arena, stadium, and sports facility projects. Paul formerly worked in municipal government, as the economic development coordinator for a suburb of Chicago and as the planning coordinator for a regional development planning commission. He is currently the project manager for the a hotel and conference center development in Jamaica (Queens), New York. Paul will be primarily responsible for the financial analysis of operating revenues and expenses of the facility. Hans Detlefsen, Senior Manager with HVS, consults for public and private clients seeking to plan, develop, and operate recreational, entertainment, and retail facilities. After receiving his Masters Degree in Public Policy from the HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 4 University of Chicago, he worked for several years as a consultant at Economics Research Associates, a firm that specializes in entertainment and recreation market analyses and feasibility studies. Hans has completed assignments across the country, with a focus on convention, sports, music, retail and theater-oriented entertainment projects. He is currently assessing the feasibility options for the redevelopment of the Sweeney Civic Center in Santa Fe, New Mexico. Hans will be primarily responsible for market analysis demand projections of the facility. Shawn O'Leary, Senior Associate with HVS, provides economic and financial modeling assistance on projects including conference center studies, convention centers, casinos and theme parks and other entertainment venues. Prior to receiving his Masters Degree in Public Policy from the University of Chicago, he worked three years as a business writer and general assignment reporter for the Bangor Daily News in Bangor, Maine. While in graduate school he specialized in public finance and developed an expertise in land use policy. Shawn will be responsible for assisting senior HVS staff with demand projections and developing the public financing strategies for the facility. Project Personnel: Chris Eseman, AIA, Partner, has over 25 years of architectural experience LMN including the programming, planning, and design of several award-winning public assembly and urban design projects. Promoted to Partner in 1997 for his exceptional design and management skills, Chris has provided guidance and Partner level assistance with many of LMN's large, public projects. Chris's extensive and diverse background with many market sectors results in considerable experience with diverse site issues, technical requirements, on-budget cost control, on-time scheduling and delivery, and a design result that meets the artistic and programmatic requirements of a project. Chris will be primarily responsible for overseeing the performance of the LMN team. Mark Reddington, FAIR, Partner, is acclaimed for his design expertise in meeting complex project challenges that result in architectural works of sensitive and enduring quality. As the designer of many of LMN's major projects, Mark's design leadership has positioned LMN as nationally prominent designers of significant public facilities. Each design develops a unique expression that responds to its particular influences, creating buildings that are both individually distinctive as well as integrated to their setting. His designs have been widely recognized with awards throughout the United States. Mark will work closely with the client, project stakeholders, and the design team as well as provide design leadership HVS Convention, Sports F~ Entertainment Facilities Consulting Proposal s through direct involvement with the project team for the entire project schedule. Relevant Experience: Market and feasibility studies require a combination of rigorous analysis and HVS creative thinking. HVS brings the skills and experience necessary to develop a project concept and we successfully help clients to meet their development objectives. Detailed project profiles for all team members are included in the appendix to this proposal. Raleigh, North Carolina - In October 2002, HVS was retained to provide development assistance for a proposed new convention center and hotel in downtown Raleigh on behalf of a nineteen member Convention Center Steering Committee that was appointed by the Raleigh City Council. For this project, HVS teamed with LMN Architects. HVS reviewed a previous convention center feasibility study and determined its coordination with the overall downtown plan. HVS also provided an analysis of peer markets and facilities, a site analysis, a demand analysis, and a business and financing plan. HVS completed the convention center and hotel feasibility studies and has provided a business plan, which has been approved by the Steering Committee and which included a physical development recommendation as well as a financing plan. The business plan is pending joint approval of the Raleigh City Council and the Wake County Board of Commissioners. Santa Fe, New Mexico -The City of Santa Fe has sought to facilitate the development or redevelopment of the Sweeney Civic Center for several years. HVS teams with LMN Architects and Lloyd & Associates Architects to complete the civic center feasibility study and schematic designs. HVS reviewed previous feasibility studies and updated target market research for the Sweeney Center and the Civic Center District. The client requested that HVS provide information on current and potential community and municipal use, as well as investigate multiple use needs and analyze financing options. HVS has completed a market study and business plan. The recommended financing strategy relies on a 1% increase in the local hotel rooms tax which has been approved by the state legislation. Our comprehensive business plan anticipates the funding needs for capital cost, operations and marketing. This plan is currently under consideration by the City Council. ' Austin, Texas -The City of Austin hired HVS staff to perform a feasibility study for the expansion of the Austin Convention Center. The convention center and hotel feasibility reports prepared by HVS were essential HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 6 components in the City of Austin's financing of this development. Additionally, we were recognized in the press for our excellent quality of work on the project we performed for the City of Austin. Bloomberg.com published an article on May 25, 2000, stating: "Austin, in other words, has a lot of credibility, which means these bonds do, too. And a lot of that comes from the 142-page feasibility study for the hotel, by HUS International... The HUS report may set the new standard for solid feasibility studies attached to bond issues, such is its comprehensiveness and tone. Serious projects beget serious feasibility studies." - Joe Mysak, Bloomberg.com Milwaukee, Wisconsin -Over the past six years, HVS staff has provided various services to the Wisconsin Center District, the operator of the Midwest Express Center. We performed financial advisory services for the original construction project, market and feasibility studies as well as an economic impact analysis for a subsequent expansion of the Center, and provided projections of tax revenues that supported the Center's financing. The first two phases of development are operational. The District is currently considering a third phase of expansion of the convention center. The conversion of the auditorium into a 4,500 seat performing arts venue is already under construction. HVS is assisting the District in that effort through the analysis of concept plans to keep exterior enhancements consistent with historic preservation and neighborhood interface while maintaining an integrated connection with the convention center and arena. Omaha, Nebraska -The City of Omaha hired HVS to conduct a demand analysis, the purpose of the study being the assessment of the ability of the Convention Center to generate room night demand for the adjacent proposed headquarters hotel. The project involved an evaluation of the facility building program and an analysis of peer markets and comparable facilities. HVS staff interviewed meeting planners in order to better assess the City's marketing plan, and also provided projections of event demand, attendance and room night generation. Our results were key to an investment grade rating for headquarters hotel financing. The study appeared in offering statements for headquarters hotel financing which closed in Apri12002. ' Overland Park, Kansas -HVS staff provided the City with a full range of project assistance including: convention center and hotel feasibility analyses, hotel tax projections, financing plans, economic impact analysis, and HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal ? assistance with the development process. Based on the feasibility work performed by HVS staff, a 412-room Sheraton hotel and convention center project was successfully financed in January 2002 and opened in November 2002. The hotel portion of this project was funded using tax exempt municipal bonds, which has recently become a popular method of public financing of convention center hotels. Suffolk, Virginia -The City of Suffolk hired HVS Convention, Sports & Entertainment Facilities Consulting to conduct a feasibility study on a proposed conference center planned in conjunction with a new hotel. A previous study by HVS identified the market potential for a hotel and the City needed a more detailed analysis of the conference center element of the proposed facility. HVS assessed the market for conference space and detailed the facility programs and demand characteristics of existing facilities in the area. Surveys and interviews with state association event planners and local businesses provided information on various segments of event demand. HVS estimated the level of group and meeting event demand and room nights. The City also asked HVS to conduct an economic and fiscal impact analysis of the proposed project. Finally, HVS projected future revenues from the City's hotel and prepared meals taxes to assist the City in determining the level of revenue that would be available to help pay for the debt service on project financing. The City of Suffolk is currently negotiating with developers and preparing to issue debt to finance the public portion of project costs. The HVS study will be part of the offering statement for project financing. Youngstown, Ohio -Compass Facilities Management, working as an advisor to the City of Youngstown, hired HVS to conduct a feasibility analysis of a hotel with conference space in downtown Youngstown. The City received a federal grant to develop an arena. In an effort to further its overall urban ' revitalization efforts, the City decided to pursue joint development of an arena and a hotel facility. The City's goal is to leverage the grant money for the arena to improve the feasibility of a downtown hotel by entering into a joint development agreement with a developer that would build and operate both facilities. HVS studied the market for a hotel conference center in Youngstown and recommended a 150-room hotel with 11,000 square feet of conference space. Compass and the City are currently utilizing the demand and operating projections to assist in their search for interested developers. Over the past five years, HVS staff have also performed market and feasibility studies for new and expanded convention and conference centers around the HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 8 world. A complete listing of our projects is attached to this proposal in the Appendix. Relevant Experience: In association with HVS, LMN Architects completed a physical plan for a new LMN Raleigh/Wake County Convention Center in Raleigh, North Carolina. This study advances previously completed market analyses by confirming market demand, refining the program, and proposing funding strategies for a new convention center facility and a new convention center hotel. In addition, the study examined 13 potential convention center sites in downtown Raleigh and the surrounding suburbs, considering each site's performance against 27 different criteria, ultimately producing a preferred site which is located downtown, near existing hotels and visitor amenities. The new 500,000 square foot convention center facility will include 150,000 square feet of exhibit hall space, 30,000 square feet of meeting rooms, and a 32,000 square foot ballroom and an adjacent full-service 450-room hotel. LMN's design concept takes maximum advantage of existing topography, carefully siting the exhibit hall at the lowest point of the site, intercepting trucks at grade prior to entering the city street system, this configuration results in a "buried" exhibit hall at the site's highest point, reducing the mass of the building. Meeting rooms and ballroom facilities are located on the upper level, at grade at the site's high point with lobbies and prefunction areas ringing the perimeter, while the loading dock is underground, which allows for retail or other income-producing active uses and lively facades on all sides of the project. The convention center's primary entry and the new hotel are to be located along the Fayetteville Street Mall, Raleigh's visual and cultural center which is currently undergoing a major transformation -reintroducing traffic and removing the small and outdated existing convention center, reopening the visual axis between the State Capitol and BTI Arts Center. LMN also provided project cost estimates for the hotel and convention center, which are key elements of the financing plan. Also in association with HVS, LMN developed the Santa Fe Civic Center District Action Plan in Santa Fe, New Mexico. The City of Santa Fe hosts numerous and renowned cultural events including annual festivals, open-air markets, opera, theater and seasonal celebrations. The Action Plan focuses on establishing a careful ensemble of facilities with appropriate urban presence and improved function to ensure that the City's ability to accommodate large, diverse community focused activities is strengthened. Proposed is a multi- purpose exhibit and meeting facility along with structured parking elements that update and enhance existing building capabilities and preserve adjacent open spaces. The challenge of maintaining open spaces, while also ' HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 9 t maximizing site utilization, requires a design and program carefully crafted o balances the proposed facilities with the historic and moderate scale of adjacent structures. LMN's concept design, building on regional precedence, employs a south facing portal to create a unifying element to encourage the diverse life of the street to engage the public areas and community activities of the center. The building is organized around a series of interior courtyards offering a public experience which is truly unique to Santa Fe. Strategic ' massing and logical organization ensures that the facility is both functionally effective and a welcome neighbor within the historic setting. LMN brings a long and distinguished history of convention and conference center design experience to this project, from large facilities like the Baltimore Convention Center to smaller facilities like the South Padre Island Convention Centre. A review of all 55 convention and conference center projects completed by LMN shows without exception a unique design capability that displays a high level of sensitivity to the local environment and community needs. LMN currently employs 12 accredited LEEDs professionals. Three LMN projects are registered with the USGBC: Seattle Central Public Library (under review for a goal of Silver Certification); Marion Oliver McCaw Hall (under review for a goal of Silver Certification); and the New Instructional Building at Bellevue Community College (LEEDs Certified). ' References The following individuals were involved with HVS projects described earlier in this proposal. HVS has an excellent track record for completing our assignments within budget and on time. We invite you to contact any of these individuals as references regarding the quality of our work. Raleigh /Wake County Convention Center ' Mr. Dave Heinl President and CEO Greater Raleigh Convention and Visitors Bureau 421 Fayetteville Street Mall, Ste. 1505 Raleigh, NC 27601 Phone: (919) 834-5900 x127 Date of Service: 2002-present HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 10 Midwest Express Center -Development & Expansion Mr. Charles Pesano Chief Financial Officer Wisconsin Center District 400 West Wisconsin Ave. Milwaukee, WI 53203 Phone: (414) 908-6055 Date of Service: 1994 - 2002 Overland Park Convention Center -Feasibility & Development Negotiations Mr. John Nachbar City Manager City of Overland Park City Hall 8500 Santa Fe Drive Overland Park, KS 66212-2899 Phone: (913) 895-6101 Date of Service: 1996 - 2002 Omaha Convention Center Hotel -Development Negotiations Mr. Bob Peters Planning Director City of Omaha Planning Department 1819 Farnam Street, Suite 1111 Omaha, NE 68183 Phone: (402) 444-5157 Date of Service: 2001- Apri12002 Understanding of the In November 2002, citizens of the Town of Vail ("TOV") voted to approve a Assignment dedicated revenue source to support the development of a world class Conference Center (the "Facility"). A 1.2-acre site adjacent to the 110 space Lionshead parking structure has been designated as the Conference Center site (located at 395 South Frontage Road West). The TOV envisions aworld- class, sustainably designed (minimum LEEDS certification) conference center with a 35,000 s.f. ballroom, associated breakout rooms, commercial kitchen facilities, and office spaces. The Project includes four phases: 1. Creation of a market analysis and a business and operational plan for the conference center; HVS Convention, Sports f~ Entertainment Facilities Consulting Proposal 11 2. Creation of a design that meets the programmatic and financial goals of the business plan, as well as complying with the applicable development regulations of the Town; 3. Construction of the Vail Conference Center; 4. Operation and maintenance of the Facility. This response to the RFP is intended to apply to the first phase of the Project only. Proposed Objective The objective of this assignment is to perform a market analysis for the & Methodology purpose of evaluating the demand for, and financial feasibility of, development of a proposed conference center in Vail, Colorado. In addition, the Town of Vail is seeking a comprehensive business plan that includes capital and operating cost estimates, a financing plan, and sensitivity analysis that assesses the potential risks and benefits to the TOV. To accomplish this, HVS would undertake a series of analytical tasks that has proven to be highly effective in prior consulting engagements. HVS understands the market dynamics of the meetings industry. Our market research will analyze the relationship between the economics and demographics of a community and the potential for conference center development. Our extensive databases on comparable facilities and communities will allow us to perform comparative analysis of similar developments in acost-effective manner. We will also employ interview techniques targeted to potential users to understand the market demand for a proposed development. Specifically, a forecast of revenue and expenses will be generated for the conference center component of the subject property. This study will also estimate the number of annual hotel room night stays and visitor spending that will be generated by the conference center facility. PHASE I: HVS will conduct a detailed independent market analysis that culminates in MARKET STUDY a projection of event demand and provides an understanding of the appropriate market niche for the Facility. The market analysis will also provide a basis for determining the correct approach to the Facility's development. Phase I-A HVS will meet with you and/or your representatives to discuss our study in Data Gathering and more detail and to formulate a schedule for performing the fieldwork. At this Fieldwork time, we will gather any information from you that may assist us in performing this assignment. Any introductions to local hotel operators, governmental officials and business leaders would increase the effectiveness ' HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 12 1 of our research and expedite the fieldwork process. HVS will also perform ' the following tasks: 1. On-site inspection of the proposed site; 2. Review the physical orientation of the proposed conference center site ' with respect to site access and the supportive nature of surrounding land uses as they relate to the proposed conference center; ' 3. Investigate the availability of lodging facilities to support the conference center; 4. Determine the role that the public sector intends the facility to play in ' the market; 5. Conduct interviews with business and government officials in order ' to collect relevant statistical market data which will be used in locating and quantifying demand for the conference center. Primary types of data include quality of supply, seasonality, weekly demand fluctuations, vulnerability to economic trends and changes in travel patterns and other related factors; ' 6. Use of market research to estimate the demand for food, beverage, facilities ban uet tin d q g ; , an mee 7. Types of events currently occurring in the market area in existing venues and any plans for expansions, upgrades, or new facilities; 8. Interview local Chamber of Commerce representatives, economic development agencies and other related organizations, along with an ' investigation of the market area to reveal patterns reflecting growth, stability or decline. Statistical data relating to general economic and demographic trends often foreshadows future demand potential; and 9. Research on expense factors relating to local conditions such as labor, energy rates, assessed values and taxes. In most instances, we will ' attempt to utilize actual expense experience from comparable properties in the feasibility portion of our study. ' Phase 1-B Market Overview HVS will assess key market variables and economic data, culminating in an anal sis of the followin : y g Local area conditions ' ^ Demographic and economic characteristics ^ Work force characteristics ^ Projected economic growth ' HVS Convention, Sports f~ Entertainment Facilities Consulting Proposal 13 ^ Business climate ^ Corporate presence, ^ Colleges and universities, ^ Arts, culture, and entertainment ' Hotel supply (including number of rooms by type and meeting space) ^ Leisure and tourism ^ Visitor industry-related taxes ^ Proposed development initiatives ^ Transportation/air access and costs Phase I-C HVS will compile data on mountain resort conference facilities of comparable Comparable and size and in markets similar to the proposed Facility. We will also analyze the ' Competitive Facility number, size and quality of potentially competitive conference facilities. Analysis Facility attributes to be compared include: ^ Conference center size, flexibility and overall quality, ' Number of existing and proposed city-wide hotel rooms, ^ Air service levels, ^ Comparative demographic characteristics, ' Unique destination appeal characteristics, ^ Levels of event demand by event type, ^ Marketing resources, ^ Operational structure, ^ Economic performance, and ^ Other factors that may determine the level of demand. Additional features of this analysis -HVS will identify conference centers that have ceased operations, and will look at the specific reasons they failed and how such failures can be avoided. HVS will also identify conference centers that break even or better on an operational basis and how those practices maybe emulated. Phase I-D HVS understands the key trends in the conference and meetings industry Industry Trends that may affect the potential demand for facilities in different types of Analysis markets. The association of our Division with 19 other hospitality consulting offices worldwide that comprise HVS International provides us with a unique perspective on the latest industry changes. This trends analysis will include ' information on both national, regional, and state markets and cover relevant indices and topics including: ^ Historical growth in the supply of, and demand for, meeting space, HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 14 ^ Planned additions to the supply of meeting facilities, ^ Projected growth in the demand for meeting facilities, and ^ National, regional and state market trends. Phase I-E User Surveys -Surveys of potential users provide vital information regarding Surveys the market potential of proposed event facilities. HVS would not outsource the survey research as some other firms do. The direct contact of our consultants with potential facility users provides more detailed and valuable insight into meeting planner needs that third party surveys do not provide. ' HVS will identify an appropriate sample of event planners that reflects primary segments of potential demand. The survey measures event planners interest in the proposed facility and the market generally. In addition, the ' survey requests information on the characteristics of the events that the respondents plan. HVS will use a combination of different methods to collect accurate and comprehensive feedback from event planners: ^ Internet-Based Survey Form-An internet-based survey form HVS tailors specifically to this analysis will enable a large sample of event planners to express their views. The use of internet surveys can significantly increase the response rate versus telephone or fax surveys due to the ease of access. ^ Telephone Interviews-HVS will select a subset of the survey sample to contact directly to attain additional detail on their views of the market. These interviews supplement the information collected via survey forms by enabling HVS to engage event planners in conversation regarding their impressions of the market and the proposed facility. ^ Follow-up Fax and Phone Calls-HVS will follow-up with event planners that do not respond to the survey with phone calls and faxes. This follow-up enables HVS to increase the response rate and eliminate contacts that are no longer valid and replace them with other event planners. The survey covers a variety of data points that assists HVS to measure the demand potential for convention center events: Event Characteristics ^ Type of event, HVS Convention, Sports F~ Entertainment Facilities Consulting Proposa115 ^ Geographic scope of event (national, state, local) ^ Types of spaces required, ^ Types of services required, ^ Attendance and room nights, ^ Anticipated changes in event size, and ^ Past event locations. Interest /Impressions of the Market Based on our extensive industry experience and our analysis of the Vail market, HVS will determine which destination product issues are likely to have the greatest impact on meeting planner decisions about where to hold their events. The information obtained in these surveys will enable HVS to gauge the level of meeting planner interest in the market area and proposed conference center. HVS will survey a selection of meeting planners to draw conclusions about: ^ Overall level of interest in utilizing the facility ^ Relative attractiveness of peer and competing markets ^ Market attractiveness in respect to key site selection criteria HVS analyzes the responses and presents the data in easy to understand tables and charts. The results of these surveys play a key role in the HVS' demand projections and overall assessment of feasibility. Hotelier Surveys -HVS will independently review the availability of lodging units in Vail to ensure room availability (adequate bed base) for a new conference facility. HVS will conduct a survey of hotel operators to determine the availability of room blocks by season and time of week. This survey will ' take place concurrently with the User Surveys. HVS recently performed a similar survey in Santa Fe where we achieved 100% compliance with the assistance of the local hotel association. Phase I-F Based on the market research, comparable facilities analysis, interview data, Demand Projections HVS will quantify the event demand for the conference facility, taking into ' account seasonal fluctuations. Demand projections will include the number of events, number of event days, number of attendees, and the amount of meeting space utilized for the first 20 years of operation for the following 1 types of events: ^ Concerts and Entertainment ^ Conferences ' HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 16 ^ Banquets ' Meetings The demand profile and data from comparable facilities serve as the primary inputs into the financial model. Having recently competed a number of ' conference center studies, HVS has available data on conference center operations. This model separates the fixed and variable components of revenue and expenses, and produces estimates of revenue and expense annually over the projection period. Variable components of expenses will be estimated based on the level of anticipated conference center revenue. The fixed expenses are projected based on data from comparable facility operations. The description of financial projections will include a detailed line-by-line account of all revenue sources and expenses. ' PHASE II: The next tasks HVS would undertake involve site analysis and facility FACILITY recommendations based on the detailed market research conducted in Phase RECOMMENDATIONS I that will provide an understanding of the appropriate current market niche ' for the conference center. LMN will be involved in the building program plan and cost estimating. ' Phase II-A Detailed site analysis and facility recommendations are necessary for two Facility Program reasons: 1) given the constraints of the proposed site, physical planning will Recommendations be necessary to determine whether and how the facility program will fit on the site, and 2) reliable cost estimates can only be generated from a physical plan that details the square footage of each type of space and takes into ' account the specific building requirements necessitated by the building plan. Based on the findings in Phase I, HVS will develop a facility program recommendation, the functionality and flexibility of which are important ' elements in the ultimate market success of a conference facility. The proposed program will specify the square footage of the ballroom space, breakout meeting rooms, pre-function areas and service areas. The facility description will include suggestions on the divisibility of the ballroom and meeting room spaces. The use of multi-purpose space (e.g., combined meeting and ballroom space) may also be considered in the ' recommendations, as appropriate. Step II-B: HVS and LMN will propose a building program plan which will include a ' Building Program Plan description of the required floor area and adjacency for each of the following elements: ' HVS Convention, S orts £~ Entertainment Facilities Consultin Pro sa117 ^ Gross floor area (square footage) of the entire facility, ' Quantity and location of prefunction/lobby space, ^ Number, size and location of breakout/meetingrnoms, ^ Kitchen banquet facilities, ^ Specific support spaces, ^ Master plan for future facility expansion, • Quantity and location of ingress/egress areas and loading docks, ^ Parking areas, ^ Technology requirements and upgrades, ^ Business services and amenities, and ^ Others as appropriate. The concept plan provided by LMN will identify the size, preferred relationships, and specific requirements for the hotel and conference center project. This program will set the basis for preliminary cost estimates and exploration of concept design alternatives. The concept plan will include: ^ A site plan showing the building footprint, site circulation, traffic ' access, building service, building entry, connections to parking, etc. ^ Floor plans testing the physical compliance with the summary ' program. ^ Conceptual building sections establishing floor-to-floor relationships. ^ Estimates of square footage requirements for each type of space in the project. PHASE III: The potential for positive spending impact and an increase in overall activity ECONOMIC & FISCAL in Vail and the surrounding community provides the primary rationale for IMPACT public investment. ' Phase III-A Based on the analysis of local markets, HVS will develop assumptions Spending Assumptions regarding the amounts of spending that will be drawn from outside the area. & Methodology The analysis uses these assumptions to estimate net new spending impact and to avoid counting transfer spending within the community as new spending impact. This methodology produces a much more precise estimate of the net new spending associated with event activity at a facility than typical impact estimates that measure the gross spending, regardless of its character or point of origin. HVS Convention, Sports F~ Entertainment Facilities Consulting Proposal 18 Phase III-B HVS will use the demand and attendance projections by type of event Spending Estimates (conferences, tradeshows, meetings, etc.) and scope (national, state, and local) in the year when the facility is projected to reach stabilized demand, as the basis for spending estimates. HVS will estimate the spending of event delegates, associations, and exhibitors by type of expenditure using the latest version of the International Association of Convention & Visitor Bureau's spending survey, adjusted for inflation and local market characteristics as necessary. HVS will estimate three types of impacts in the analysis: ^ Direct impacts include the visitor expenditures, payroll, and employment resulting from the events and operations occurring at the facility and any new demand the proposed conference facility would enable the market to accommodate. Industry sectors include: hotel services and restaurants, other restaurants, tours/sightseeing, admission to museums and theaters, recreation, sporting events, retail stores, local transport, auto rental, gasoline, services to buildings, advertising and promotion, equipment rental, and others. ^ Indirect impacts are the supply of goods and services resulting from the initial direct facility-related spending. ^ Induced impacts represent the change in local consumption due to the personal spending by employees whose incomes are affected by direct and indirect spending. Indirect and induced impacts are often referred to as the multiplier effects, which typically amount to approximately 40 percent of the total economic impact. However, this percentage varies depending upon the types of spending and the characteristics of each region's economy. HVS will use the IMPLAN input-output model to estimate indirect and induced impacts. IMPLAN is a nationally recognized model commonly used to estimate economic impacts. An input-output model generally describes the commodities and income that normally flow through the various sectors of the economy. The indirect and induced expenditure, payroll, and employment effects result from the estimated changes in the flow of income and goods caused by the projected direct impacts. IMPLAN data are available by state, county, and zip code levels. ' HVS Convention, S orts f~ Entertainment Facilities Consultin Pro osal 19 Phase III-C HVS will calculate the net new direct spending associated with the project, Fiscal Impacts taking the information previously developed in our market study and making additional assumptions about event demand for the conference element of the facility. This analysis isolates the portion of spending associated with the facility that is new to the TOV's economy. HVS will show total estimated economic ' impacts expected to result from the project. We will break these economic impacts into direct, indirect, and induced components to provide a fuller understanding of the projected effects on the local economy. Economic impacts will be measured as annual net changes expected in spending and employment in the local economy. PHASE IV: The financing plan phase of this study will incorporate all findings of BUSINESS PLAN previous phases. It will also involve the financial analysis of operations of the proposed conference facility as well as coordination with financial advisors on the approach to financing. Phase IV-A HVS will project operating revenues and expenses of the convention center Analysis Of Financial fora 20 year period. This analysis will utilize a sophisticated computerized Operations model of convention center financial operations developed by HVS ' Convention, Sports & Entertainment Facilities Consulting. This software identifies the key variables that determine the income and expense of a convention facility. t The demand profile and data from comparable facilities serve as the primary inputs into the financial model. This model separates the fixed and variable ' components of revenue and expenses. Variable components of expenses will be estimated based on the level of anticipate convention center revenue. The fixed expenses are projected based on data from comparable facility operations. The description of financial projections will include a detailed line-by-line account of all revenue sources and expenses. ' HVS enters the estimated number of events and average attendance by type of event into the operating model. This model produces estimates of revenue and expense annually over the projection penod. The description of financial ' projections will include a detailed line-by-line account of all revenue sources and expenses. From earlier studies, HVS has the staffing plans of several comparable conference facilities. HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 20 Step IV-B: HVS and LMN will provide a preliminary estimate of the project costs of the Cost Estimating proposed facility. The cost estimates will be based on the square footage costs of comparable developments elsewhere, adjusted for local market conditions. The cost estimate will include hard construction costs, fixtures, furniture and equipment (FF&E), projected design and development costs, cost for creating an additional plate of parking on the Lionshead parking structure, and proposed project contingencies. Step IV-C: HVS enters the estimated number of events and average attendance by type Projections of of event into the operating model. This model produces estimates of revenue Revenues & Expenses and expense annually over the projection period. The description of financial projections will include a detailed line-by-line account of all revenue sources and expenses. Step IV-D: HVS will recommend an approach to operating the conference facility that Operating Plan includes the following primary areas of concern: 1) ownership arrangements, 2) a recommended approach to facility management 3) booking policies, 4) the approach to sales and marketing, and 5) room block commitments agreements from local hoteliers. Ownership arrangements must consider the approach to financing and the Internal Revenue Service requirements for the management of projects that are financed with tax-exempt bonds. Direct Town Ownership, a municipal corporation or authority, non-profit or private entities should all be considered in the context of the financing plan. The recommended approach to facility management is also related to ownership and financing arrangements. The options range from purely private operation of the conference center to direct operation by Town staff. In any case, the Town needs to assure the highest quality of professional management of the facility. The approach to food and beverage operations in the facility is also a highly critical factor in determining the success of the operations. ' Booking policies should address the types of events that are given priority in the facility. If the Towri s objectives are to stimulate spending impacts and to support the local hotel industry, then policies should be established that I assure that the conference center gives priority to events that generate new out of town visitation. Serving local events is also an important goal of civic facilities and the needs of local users need to be balanced non-local events. HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 2l The approach to sales and marketing would include identifying the agencies responsible for the sale of the conference center and the marketing of the destination. Typically, conference center management, the convention and visitors bureau, and the sponsoring municipality all share in the responsibility for the marketing and sales of the publicly owned conference center. The financing plan should include an estimate of the personnel and financial resources necessary to market the conference center. HVS assumes ' that a detailed marketing plan would be generated by the groups with responsibility for marketing and sales. Assuming the project moves forward, room block commitment agreements should be negotiated between the TOV and local hoteliers. This commitment would specify the number of rooms, potential room rates and the timing of ' room block commitments by local hotels. The level of the room block commitment typically varies by season and time of the week. HVS has been involved in a several room block commitment negotiations and offers the benefit of this experience to the TOV. For the purposes of this operating plan, HVS would outline some general recommended terms for room block commitment agreements. Step IV-E: HVS will identify alternative methods of financing the construction of the Approach to Financing facility. Case studies from financing plans used in other markets will help to ' illustrate various options. HVS will explore various innovative approaches to project financing, including various forms of public/private partnerships. This analysis and discussions with client representatives will lead to a ' recommended financing plan that achieves the best practical match of project benefits and costs. The market and financial analysis previously discussed in the proposal would provide the necessary information on capital costs and the availability of operating revenue to support the project. In consultation with the TOV and its financial advisors, HVS will identify funding alternatives and estimate the future capacity of those resources to support the construction and operations of the project. HVS will draw upon its considerable experience in working with public/private development projects to identify the parameters of a financial ' development structure that creates an equitable distribution of costs to those who benefit from the project. Since conference centers rarely generate significant profits and may run a deficit, a source of non-project related revenues are likely to be necessary to finance this project. ' HVS Convention, Sports £~ Entertainment Facilities Consulting Proposal 22 HVS will recommend a preferred financing plan and estimate the debt service requirements of the proposed approach to financing. HVS will assist in the development of a preliminary debt service schedule and, for the period for which debt service is outstanding, estimate coverage ratios (annual operating and non-operating revenue divided by annual debt service requirements). 1 By using sensitivity analysis, HVS will assess the risk to the TOV if the project does not perform as expected. Risk factors to be considered include poor performance of the conference center, lower than expected cash flows from non-project revenues, competitive threats, overall market risk, construction completion and management failure. HVS will design an approach to financing and project delivery that will mitigate these risks to the TOV. OPTIONAL SERVICES Business and Leisure Tourism Infrastructure Analysis -The market analysis will require HVS to become familiar with the strengths and weakness of Vail as a business and tourism destination. As requested in the RFP, if our research shows a conference center is not feasible, HVS will look at alternatives to increase business and leisure visitation to Vail. ' Development Assistance -Members of the HVS team will be available to meet with representatives of the TOV, the developers, and any other appropriate parties, for the purposes of negotiating the financing and construction of the conference center. ' With a proposed financing analysis complete and provided that the project is feasible, HVS will outline a process for implementation of the project. While many other projects have lingered in the financing stages, HVS has a track ' record of success in helping its clients achieve their financing objectives. We accomplish this through an organized and flexible approach to the financing process. This process typically involves the following elements. ^ Development Team Selection ' Negotiation of Deal Documents ^ Governmental Approvals Public Offerings ^ Debt Issuance (Marketing and Sale) HVS International has significant experience preparing feasibility studies and reports for public offerings. The high-quality reports produced by HVS are ' HVS Convention, Sports £~ Entertainment Facilities Consulting Proposa123 readily accepted by all, and preferred by many, rating and financial agencies. HVS will allow this report to be utilized in syndications and public offerings provided that its contents and conclusions are not communicated in a misleading manner. In addition, at the client's request HVS will re-address this report to other interested parties. If the report has not been produced in its final format, there is no additional charge for this service. Personalized It is our operating practice to regularly communicate with our clients to Support update them on our status and findings. We pledge to be available via telephone throughout the duration of the project to discuss with you any issues or ideas that may arise. Upon submission of our study, members of HVS will be available to meet with you and/or any third party to review our analysis and conclusions. This personalized support enhances the credibility ' of our findings and assists you in achieving your objectives. Timing and Project We anticipate that this project will require approximately twelve weeks to Deliverables complete from the date of authorization to proceed. Every project is unique and the early findings of the study most often influence the direction of the remaining analysis. We are flexible in our approach to the scope of services. In our initial meeting we will discuss the goals of the study and determine what information is available to the project team. Based on that discussion we will make any necessary changes to the ' scope of services. HVS Convention, Sports £~ Entertainment Facilities Consulting Proposa124 Proposed Project Schedule Task W-1 W-2 w-3 W-4 w-5 w-6 w-7 w-8 w-9 w-10 W-11 w-12 Phase I -Market Study Step A -Field Work & Data Gathering M Step B -Market Area Overview Step C -Comparable & Competitive Facilities Analysis Step D -Industry Trends Step E -Surveys Step F -Demand Projections Interim Report MD Phase II -Facility Recommendations Step A -Facility Program Recommendations Step B -Building Program Plan Phase III -Economic & Fiscal Impact Step A -Spending Assumptions & Methodology Step B -Spending Estimates Step C -Fiscal Impacts Phase IV -Business Plan Step A -Analysis of Financial Operations Step B -Cost Estimating Step C -Projection of Revenues and Expenses Step D -Operating Plan Step E - Approach to Financing Final Report & Presentation MD "M" indicates a scheduled meeting. MD indicates a meeting and deliverable report. Reporting -Upon completion of all project tasks in Phases I, our team will proceed with the preparation of a draft Interim Market Study and Feasibility Analysis Report. We will discuss our findings with you and incorporate any recommendations you may have that may influence the direction of the project. After the completion of Phases II-IV, we will finalize the report and present the results of our analysis. This final report will include the conclusions of our Business Plan and will include the following sections: ^ Introduction and Summary of Conclusions ^ Nature of the Assignment ^ Description of the Proposed Project ^ Market Area and Neighborhood Analysis ^ Industry Trends Overview ' HVS Convention, Sports £~ Entertainment Facilities Consulting Proposa125 ^ Comparable Market and Facility Analysis, ^ Demand and Operating Projections ^ Economic Impact ^ Business Plan ^ Statement of Assumptions and Limitations ^ Certifications ' Satisfaction - We are confident that you will find our reports to be comprehensive and complete. Upon submission of our first draft, we will incorporate any suggestions you may have that would enhance the ' effectiveness of our presentation. Once we have received your final approval, we will print and deliver to you our final report. ' Professional Fees Our professional fees for this project are $74,000. Professional Fee Breakdown Managing Director Hours Fees Senior Vice President Hours Fees Senior Manager Hours Fees Senior Associate Hours Fees Staff Hours Fees Sub- Consultant Fees Total Fees rounded) Phase I -Market Study 5.5 1,369 0.0 - 118.9 20,809 0.0 - 63.1 5,681 28,000 Phase II -Facility Recommendations 3.6 909 0.0 - 5.8 1,010 0.0 - 1.1 101 15,000 17,000 Phase III -Economic & Fiscal Impact 1.5 370 33.3 6,660 0.0 - 0.0 - 4.1 370 7,000 Phase IV -Business Plan 28.6 7,148 20.0 3,996 0.0 - 34.0 5,095 9.5 855 5,000 22,000 Total 39.2 9,796 53.3 10,656 124.7 21,819 34.0 5,095 77.9 7,007 20,000 74,000 The hourly estimates by staff member are approximate, and HVS reserves the right to change staff assignments in accordance with the needs of the project. The above fee structure includes initial fieldwork meetings, an interim meeting, and a final meeting to present the project findings. We will charge a per diem of $2,250 per day for the managing director, $1,800 per day for the senior vice president and senior manager, and $1,500 per day for the senior associate, plus travel expenses, for any additional meetings (see HVS Hourly and Per Diem table below). HVS Convention, Sports £~ Entertainment Facilities CansieltinA Proposal 26 Any optional services that may benefit the TOV but are not identified in the Scope of Work of this RFP, or if the TOV wishes to increase the scope or frequency of service, will be covered by our hourly and per diem rates. Our hourly and per diem professional fees are as follows: Hourly and Daity Rates HVS Hourly Rate Per Diem ~'~ Managing Director $250 $2,250 Senior Vice President 200 1,800 Senior Manager 175 1,800 ' Senior Associate 150 1,500 Staff 90 NA In addition to our professional fees, you agree to reimburse us for reasonable out-of-pocket travel, report production, and related expenses (such as survey software and out-research services including Smith Travel Research and FW Dodge) incurred on your behalf. Expenses will be billed at 1.1 times cost. Expenses will not exceed $6,000. This expense cap includes all the travel related expenses for the project, the cost of all data, and the production of ten interim and ten final reports. You will be billed periodically for expenses, which will be due and payable upon presentation of our bills. Payment must be made in U.S. dollars, using either a check drawn on a U.S. bank or a wire transfer of funds to the account of HVS International. In the event that after completing the fieldwork phase of this assignment it becomes necessary to alter the parameters of the study, such as the property description, opening date, location, or any other factor which could change the final conclusions, the HVS will be entitled to charge an additional fee based on our current per diem rates and the time required to incorporate the necessary changes into our analysis and report. In addition, the estimate of timing will be extended by an amount equal to the added work. It is agreed that the liability of HVS, its employees, and anyone else associated with this assignment is limited to the amount of the fee paid as liquidated damages. You acknowledge that any opinions, recommendations, and conclusions expressed during this assignment will be rendered by the staff of HVS acting solely as employees and not as individuals. Any responsibility of HVS is limited to the client, and use of our product by third parties shall be solely at the risk of the client and/or third parties. ' HVS Convention, Sports F~ Entertainment Facilities Consulting Proposa127 i The study described in this proposal will be made subject to certain assumptions and limiting conditions. A copy of our standard assumptions and limiting conditions will be provided upon request. We appreciate the opportunity of submitting this proposal and look forward to working with you on this assignment. Very truly yours, HVS International Thomas Hazinski Managing Director HVS Convention, Sports & Entertainment Facilities Consulting Division TH:kg Appendix HVS Convention, Sports & Entertainment Facilities Consulting THOMAS A. HAZINSKI Managing Director HVS Convention, Sports & Entertainment Facilities Consulting Thomas A. Hazinski has 18 years of experience in the public policy arena, as a public official and as a consultant. He specializes in providing economic and financial research to public agencies involved in economic development initiatives. With an extensive background in municipal finance, Mr. Hazinski is nationally recognized by rating agencies, bond insurers, municipal bond investors and local govemment officials for his expertise on public development projects. He is currently the Managing Director of HVS Convention, Sports & Entertainment Facilities Consulting, the division of HVS Intemational dedicated to the market and financial analysis of public assembly facilities. Formerly, Mr. Hazinski served as Senior Vice President of C.H. Johnson Consulting, Inc., a firm that specialized in market analyses and feasibility studies for convention, sports, hospitality, and entertainment facilities. Mr. Hazinski has managed over 100 engagements with state and local governments, helping many of his clients to successfully plan and finance their projects. Mr. Hazinski has worked on convention center and hotel initiatives in major U.S. markets such as Boston, Detroit, San Juan, Milwaukee, Richmond, Austin, and Kansas City. Intemational projects include convention cerrter developments in India, Thailand, and the Philippines. His sports facility project experience includes: Miller Park in Milwaukee, Wl; the Bt-LO Arena in Greenville, SC; the Citadel Stadium in Charleston, SC; the Centennial Arena in Raleigh, NC; Lambeau Field in Green Bay, WI; the Manchester Civic Center in Manchester, NH; and various other stadium, arena and motorspolts facilities. Mr. Hazinski also served as Vice President for Midwest Management Consulting, a financial advisory firm that assisted govemment agencies to issue debt. Before starting his consulting career, Mr. Hazinski served in govemment positions dealing with various aspects of municipal finance. Formerly Assistant Budget Director for the City of Chicago, he managed the City's revenue analysis unit and was responsible for revenue estimation, legislative review and fiscal impact analyses for numerous city projects. Mr. Hazinski also served as the Assistant Commissioner of the Department of Aviation for the City of Chicago, where he coordinated the completion and opening of the new Intemational Terminal at O'Hare Airport. Mr. Hazinski holds a Masters Degree in Public Policy from the Harris School of Public Policy at the University of Chicago, where he specialized in municipal finance. He completed four years in the post-graduate degree program, including doctoral course-work, before leaving to pursue active management. He has lectured at DePaul University in the Masters of Public Services Program, teaching a course entitled "Financial and Economic Foundations of Public Service." ' ~_~ HVS Convention, Sports & Entertainment Facilities Consulting - _ 445 West Erie, Suife 1-A Chicago, Illinois 6061Q ~NZ~Re~Ar~orrnti Phone: 312-587-99Q0 • Mobile 312-371-0566 • E :mail: thazinski~hvsinternaiinnai.com CONSULTING EXPERIENCE • Managing Director, HVS Public Facilities Division ^ Senior Vice President, C.H. Johnson Consulting, Inc. • Vice President, Midwest Management Consuttartts ^ Market and Financial Analysis of Public Development Projects ^ Fiscal and Economic Impact Studies ^ Tax Forecasts • Financial Advisory Services • Development Assistance GOVERNMENT SERVICE • Assistant Budget Director for Revenue Analysis, City of Chicago ^ Assistant Commissioner of Aviation and Intemational Terminal Manager ^ Revenue Analysis, Chicago Park District ACADEMIC BACKGROUND • M.A. Public Policy Studies, University of Chicago • B.A. University of Wisconsin - Madison ^ Lecturer, DePaul University PAUL D. SAJOVEC Senior Vice President HVS Convention, Sports & Entertainment Facilities Consulting PaDI Sajovec has over 9 years of experience in public administration and consulting, combining a strong background in public administration with extensive knowledge of the sports and convention industries. Mr. Sajovec assists public sector clients with the complex planning, financing, and administrative aspects of major sports, entertainment, convention, and other public assembly facilities. He is currently the Senior Vice President of HVS Convention, Sports & Entertainment Facilities Consulting, a division of HVS International, which is dedicated to the market and financial analysis of public assembly facilities. Formerly, Mr. Sajovec has served as a Project Manager with C.H. Johnson Consulting, Inc., a firm that specializes in market analyses and feasibility studies for convention, sports, hospitality, and entertainment facilities. At Johnson Consulting, he specialized in feasibility studies for new or upgraded stadium, arena, motorsports speedway, convention center, and conference center projects. Mr. Sajovec directed the firm's economic and fiscal impact analyses. For example, he developed and wrote an economic impact analysis of the proposed new baseball ballpark for the Boston Red Sox. He has recently conducted several studies for arenas, stadiums, and motorsports facilities including: Miller Park in Milwaukee, WI; the Centennial Arena in Raleigh, NC; Lambeau Field in Green Bay, WI, the Manchester Civic Center in Manchester, NH; the Genesis Center in Gary, IN; a proposed domed stadium in Mesa, Arizona; a proposed arena in Bloomington, IL; Rausch Creek Motorsports Park in Pennsylvania; among others. He has conducted economic impact analyses on facilities in Boston, Detroit, Louisville, Austin, Dallas, Norfolk, Richmond, Buffalo, New York, Dresden, Sao Paulo, Taipei, and others. Mr. Sajovec also specializes in helping public sector clients assess potential methods for financing proposed projects, performing case studies on experiences in other markets and assessing the capacities of various financing options. Before entering public consulting, Mr. Sajovec served as the economic development coordinator of a municipality and as the planning coordinator of a regional planning council, both in suburban Chicago. These positions provided him with valuable experience in dealing with planning, development, and administrative challenges in complex political environments. He directed the Village of Shorewood's flood recovery efforts, which received a state award for excellence. Mr. Sajovec holds a Masters Degree in Public Administration from the University of ' North Carolina at Chapel Hill. His senior thesis focused on important issues public officials need to understand in order to effectively administer major sports facility projects. He specialized in the public sector's role in sports and entertainment ' facility development in graduate school, which included an internship with the Atlanta Committee for the Olympic Games. ~~_ HVS Convention, Sports & Entertainment Facilities Consulting 445 West Erie, Suite 1-A Chicago, Illinois 60610 tNrsx!vnnoNnc Phone: 312-5&7-9900 • Mobile 773-209-6254 • E-mail: psajovec@hvsinternational.com CONSULTING EXPERIENCE ^ Senior Vice President, HVS Public Facilities Division ^ Project Manager, C.H. Johnson Consulting, Inc. ^ Market and Financial Analysis of Public Development Projects ^ Fiscal and Economic Impact Studies ^ Tax Forecasts ^ Planning and Urban Development Assistance GOVERNMENT SERVICE ^ Economic Development Coordinator, Village of Shorewood, IL ^ Planning Coordinator, I-80 Corridor Planning Council ACADEMIC BACKGROUND ^ M.A. Public Administration, University of Notth Carolina at Chapel Hill ^ B.A. Public Policy Analysis, University of North Carolina at Chapel Hill HAMS DETLEFSEN Senior Manager HVS Convention, Sports & Entertainment facilities Consulting Hans Detlefsen consults for public and private clients seeking to plan, develop, and operate cultural, entertainment, retail, and convention facilities. Mr. Detlefsen is currently a Senior Manager at HVS Convention, Sports & Entertainment Facilities Consulting, which is dedicated to objective and independent market and financial analysis of public assembly facilities. His assignments primarily include assessing the market and financial feasibility of these projects. He has devised an urban retail demand model that assists in the determination of which retail and entertainment elements are most feasible for development in particular markets. Mr. Detlefsen has also developed several financial projection models for various entertainment concepts. He has direct consulting experience in the following areas: - Market definition and evaluation - Demand modeling - Tax revenue projections - Financial feasibility testing - Retail programming - Development assistance - Attendance projections - Economic impact analysis - Capacity analysis - Sales projections - Public Financing Strategies Formerly, Mr. Detlefsen consulted for Economics Research Associates (ERA), a firm that specializes in entertainment and recreation market analyses and feasibility studies. He has completed assignments across the country, with a focus on cultural, retail and entertainment projects. Recent assignments have included civic centers, movie theaters, amphitheaters, interactive museums, shopping centers, sports arenas, convention centers and hotel conference centers. Past projects include: the new Packer Hall of Fame at Lambeau Field in Green Bay, Wisconsin; the Grammy Expo, an interactive museum and entertainment concept in New Orleans, Louisiana; and the Sweeney Civic & Convention Center in Santa Fe, New Mexico, Before starting his consulting career, Mr. Detlefsen served as Special Assistant to the Lieutenant Governor of Indiana. During his involvement with state government, Mr. Detlefsen led and assisted in research projects related to economic development, agriculture, and small business development for the State of Indiana. Mr. Detlefsen holds a Masters Degree in Public Policy from the Hams School of Public Policy at the University of Chicago, where he received the Hams Fellowship for his studies in Economic Development. He also graduated magna cum laude from the University of Notre Dame with a Bachelor of Arts in Government and Economics. ~~ HVS Convention, Sports & Entertainment Facilities Consulting ~~°~~~ 445 West Erie, Suite 1-A Chica,o, 111inois 60610 iNTExNwr~oNA~ Phone: 312-587-9900 • E-mail: hdetlefsen@hvsinternationaLcom CONSULTING EXPERIENCE ^ Senior Manager, HVS Convention, Sports & Entertainment Facilities Consulting -Associate, Economics Research Associates • Market Analysis and Feasibility Testing ^ Retail Demand Modeling • Development Assistance ^ Public Financing Strategies ACADEMIC BACKGROUND ^ M.P.P. Hams School of Public Policy, University of Chicago • B.A. Universit)+ of Notre Dame SHAWN O' LEAKY Senior Associate HVS Convention, Sports & Entertainment Facilities Consulting Shawn O'Leary provides economic and financial modeling assistance on projects including hotel conference center studies, convention centers, casinos and theme parks and other entertainment venues. Mr. O'Leary is currently a Senior Associate at HVS Convention, Sports & Entertainment Facilities Consulting, which is dedicated to objective and independent market and financial analysis of public assembly facilities. Before starting his consutang career, Mr. O'Leary served as a business writer and general assignment reporter for the Bangor Daily News in Bangor, Maine where he authored nearly 1,000 articles ranging from local governance. stories to features article and in-depth analysis pieces related to commerce throughout New England. One such analysis series, published in 2001 and entitled "Plugging-In," received widespread acclaim for analyzing the competitive supply and demand for electricity in New England one year after many of the region's states deregulated their energy markets. Mr. O'Leary also received an honorable mention in 2000 for the Maine Press Association's Bob Drake Award; given annually to Maine's best young writer. Mr. O'Leary has also worked for the Maine Department of Conservation while in college and the Metropolitan Planning Council in Chicago while in graduate school. Mr. O'Leary holds a Masters Degree in Public Policy with honors from the Harris School of Public Policy at the University of Chicago, where he specialized in municipal finance and served as a teaching assistant for the Hams School's introductory economics and political economy courses. His honors thesis, entitled "Land Use, Regulation and Liberty," compared and contrasted traditional regulatory approaches to land use regulation with market pricing schemes. The paper also included an original model for Illinois tollway pricing that allows policy makers to set tolls according to a schedule that maximizes revenues while minimizing traffic congestion. Mr. O'Leary also graduated from Bates College in Lewiston, Maine with a Bachelors Degree in Biology with emphasis in Ecology. ' ~~ HVS Convention, Sports & Entertainment Facilities Consulting ,~1/ _'~ 445 West Erie, Suite 1-A Ghicaga, Ilfir7ois 60610 iNT~xNarroNati-ti Phone: '312-58~-9900 • E-mail: hdetlefsen@hvsintematianeLcom 1 CONSULTING EXPERIENCE Senior Associate, HVS Convention, Sports & Entertainment Facilities Consulting ^ Community Planning and Redevelopment ^ Land Use Policy Strategies ^ Economic and Financial Modeling ACADEMIC BACKGROUND ^ M.P.P. Harris School of Public Policy, University of Chicago ^ B.S. Bates College Project Experience Market & Feasibility Studies Akron, Ohio John S. Knight Convention Center Expansion Alpena, Michigan Civic Center Apopka, Florida Civic Center Ashland, Kentucky Motor Speedway Austin, Texas Austin Convention Center Bangkok, Thailand Amari Hotels Convention Center Bangor, Maine Proposed Conference Center Bloomington, Illinois Arena Boston, Massachusetts Convention & Exhibition Center Boston Duck Tours Buffalo, New York Convention Center Carolina, Puerto Rico Roberto Clemente Sports City Charleston, South Carolina Cifade/ Stadium Charlotte, North Carolina Convention Center Master Plan Chennai, India Trade & Exposition Center Chicago, Illinois Kino Factory Theater Clovis, California Convention Center & Hotel Colorado Springs, Colorado Hotel Conference Center Columbus, Ohio Greater Columbus Convention Center Copenhagen, Denmark Congress Facilities Coralville, Iowa Convention Center & Hotel Corpus Christi, Texas Bayfront Convention Center Expansion Denver, Colorado Convention Center Expansion Detroit, Michigan Regional Convention Center Ford Field Entertainment-Retail Center Fort Worth, Texas Headquarters Hote- Foxwoods, Connecticut Casino & Resort -Convention Facilities Galveston, Texas Convention Center Gary, Indiana Civic Center Maximization Casino Amphitheater Grand Forks, North Dakota Alerus Center Convention Center Hotel Green Bay, Wisconsin Titletown Entertainment Retail Attraction (Lambeau Field) Greenville, South Carolina BI-LO Arena Hagerstown, Maryland Mufti-Purpose Events Center Hammond, Indiana Cine Art Movie Theater Holland, Michigan Holland Area Center Hopkins, Minnesota Hopkins High School Performing Arts & Activities Complex Jackson, Mississippi Conference Center & Golf Resat Jamaica (Queens}, New York Hotel & Conference Center Loudoun County, Virginia Convention Center & Arena Manchester, New Hampshire Civic Center / Verizon Wireless Arena Manila, Philippines Ayala Development Makati Business District Convention Center Merrillville, Indiana Convention Center Mesa, Arizona Domed Stadium Milwaukee, Wisconsin Auditorium Renovation Midwest Express Center Phase ll Expansion Midwest Express Center Phase 111 Expansion ~ HVS Convention, Sports R Entertainment Faeiiities Cortsulfing AA5 Nest Erie, Suite t-a Chicago, Illinois o061t~ inrcaNaTiohAL Phone: 312-5$7-9u00 ,Fax 312-~i37-99L~8 Project Experience . Market & Feasibility Studies (continued) Mumbai, India Bands Kurta Convention Center Naperville, Illinois Hotel and Convention Center New Morgan, Pennsylvania Formula Motor Sports Park New Orleans, Louisiana Grammy Exposition Hall & Hatt of Fame New York, New York Pier 94 -the °UnConvention Center" Vancouver, British Columbia Convention Center Wausau, Wisconsin Convention Center & Hotel Wichita, Kansas Century 11 ModemizafiorNExpansion Youngstown, Ohio Hotel Conference Center Norfolk, Virginia Convention Center & Hotel Omaha, Nebraska Convention Center, Arena & Headquarters Hotel Overland Park, Kansas Convention Center Ottawa, Ontario Rideau Carleton Trade Show and Exhibition Centre Philadelphia, Pennsylvania Convention Center Labor Study Quad Cities, Illinois Quad Cities International Raceway Park Raleigh, North Carolina Convention Center and Headquarters Hotel Richmond, Virginia Greater Richmond Convention Center Salem, Oregon On~n State Fair San Bemadino, California Arena San Juan, Puerto Rico America's World Trade Center District & Entertainment District Santa Fe, New Mexico Sweeney Civic Center Skagit County, Washington Northern State Recreation Center Syracuse, New York DestiNY-Tourism, Retail & Entertainment Center Valley View, Pennsylvania Rausch Motor Sports /Motor Sports Park ~ HVS Convention, Sports & Entertainmenf Facilities Consulting 44b West Erie, Suite 1-f~ Chicaya. Illinois aQ61t; i~rsKN~Tioti~.~L Phone:31~-687-99QL fax312-587-?908 Projecf Experience Tax Forecasts Austin, Texas Convention Center/Waller Creek Venue Project Bonds Charlotte, North Carolina Convention Center Financing Room Tax Analysis Chicago, Iflinois City of Chicago, Revenue Estimates Books (1989 through 1993) O'Hare Intemationa/ Terminal Special Revenue Bond Financing Motor Fuel Tax Bond Issue Green Bay, Wisconsin ~ambeau Field Sales Tax Analysis Arena & Convention Center, Roam Tax Analysis Gn:enville, South Carolina Greenville Audito»um District Hotel Tax Revenue Bonds Mecklenburg County, North Carolina Room Occupancy & Prepared Food & Beverage Tax Analysis Milwaukee, Wisconsin Southeast Wisconsin Professional Baseball Pa-k -District Sales Tax Revenue Bonds 1996, 1997, 1999 Wisconsin Center Dist»d~ -Junior Dedicated Tax Revenue Refunding Bond North Charleston, Souk Carolina Charleston County Municipal Accommodations Fee Analysis Orlando, Florida Orange County Convention Center Tax Revenue Analysis Overland Park, Kansas General Obligation Bonds -Transient Guest Tax Study Overland Park Development Corp. - Senior Revenue Bonds Raleigh, North Carolina Centennial Authority of North Carolina -Hotel Tax Revenue Bonds Richmond, Virginia Greater Richmond Convention Center Authonty Hotel Tax Revenue Bonds San Juan, Puerto Rico Room Tax Analysis Wausau, Wisconsin Hotel-Motel Room Tax Analysis Economic Impact Analyses Austin, Texas Austin Convention Center Boston, Massachusetts Boston Convention Center Boston Duck Tours Boston Red Sox New Fenway Park Buffalo, New York Buffalo Convention Center Columbus, Ohio Columbus Convention Center Dallas, Texas Hotel Impact on Convention Genter Denver, Colorado Hotel Impact on Convention Center Louisville, Kentucky Henry Clay Hotel Restoration -Kentucky Tou»sm Cabinet New Lennox, Massachusetts National Music Foundation Norfolk, Virginia Convention Center Overland Park, Kansas Convention Center Richmond, Virginia Convention Center Suffolk, Virginia Hotel Conference Center Milwaukee, Wisconsin Convention Center & CVB New York, New York Works Trade Center _ - tiVS Convention, Sports & Entertainment Facilities Consulting ~~5 West Erie, Suite 1-A G,h,icago, Illinois 60610 ~;yTertNn~ic~N,at_ Pftone:31?_-587-99GG .Fax 312-587-9908 I Project Experience Development Assistance Baltimore, Maryland Headquarters Hotel Development Bangor, Maine Proposed Hotel and Conference Center Development Broward County (Ft. Lauderdale), Florida Convention Center & Headquarters Hotel Development Charlotte, North Carolina Headquarters Hotel Devek~r~ent Chicago, Illinois O'Hare International Management Columbus, Ohio COS/ Science & -ndustry Museum Feasibility Study -Peer Review Huntsville, Alabama Headquarters Hotel Development Milwaukee, Wisconsin l~sconsin Center District -Financial Advisory Services Wisconsin Center District -Construction Manager Selection Milwaukee, Wisconsin l~sconsin Center District -Design Competition -nvitation & Guidelines Naperville, Illinois Hofel and Conference Center Development Normal, Illinois Hotel, Conference Center & Multi-Use Facility Development Omaha, Nebraska Headquarters Hotel & Convention Center Development Overland Park, Kansas Headquarters Hotel 8 Convention Center Development Raleigh, North Carolina Headquarters Hotel and Convention Center Development San Juan, Puerto Rico America's World Trade Center Disfict Wauwatosa, Wisconsin Milwaukee Regional Medical Center Organizational Analysis HVS Convention, Sports & Entertainment Facilities Consulting -~~~-~I~J- 4d5 Wept E;ie, Suite 1-A Chi~aga, llli[7oi.~ 6661 ihTeaNario~~t, Pi~one:312-5$7-99Gti 6 Fax3i2-58i-99(1$ ' AUSTIN CONVENTION CENTER Austin, Texas i_ ' The Austin Convention Center, built originally with 126,000 square feet of exhibit space, achieved immediate market success upon its opening and it became apparent that expansion may be warranted. HVS staff was retained by the City of Austin to perform a feasibility study ' of an expansion to the facility and to assess how the City's public facilities could work in concert to remain competitive and increase market share in the meeting and tradeshow market. The City also asked HVS staff to assist in inducing the development of a headquarters hotel. ' Project Scope Recomrr~ndations on the orientation of the facility's expansion, including how to ' incor~rate an expansion into an existing stn~cture that was not designed properly to accommodate future expansion Demand projections for current and expanded facility scenarios Operating projections based on the projected level of demand and the perfomnance of comparable facilities. Spending impact analysis ' . Room tax study Convention center demand analysis to support the hotel study ' . Analysis of headquarters hotel development and future room night projections associated with the expanded convention center Results ' . Original facility completed in 1992, and the exparisian ark hotel completed in fall 2002 1 ~~ HYS Convention, Sports & Entertainment r~ilities Corn:ulting 445 west frie, Suite 1-A, Chicago, It~nois 6[[610 ' INTERNATIONAL Phone3i2.587.99OO Fax312.587.99U8. wvwv:hvsintemational.com Client: City of Austin Project Type: Convention Center Expansion and Hotel Development Size: 120,125 sf additional exhibit space; 43,300 sf upper level grand ballroom; 18 additional meeting rooms (27,918 square feet) Project Value: Hotel: $276 mm bond issue Convention Center: $110 mm bond issue Role: Financial Analyst, Consultant Qates of Service: 2001 Client: US Bancorp Piper Jaffray HVS conducted a demand analysis that projected events and attendance at the expanded Goiorado Gonvention Center assuming that the proposed 1,100-room Marriott headquarters hotel was available. The purpose of this analysis was to determine the number of additional event attendees and room nights the hotel would attract and to calculate the economic impact associated with this increased event activity. The expansion of the convention center is scheduled to open on December 6, 2004 and the headquarters hotel is scheduled to open one year later in December 2005. Project Scope Estimate of new room nights associated with the development of the proposed headquarters hotel that would be new to Denver Direct spending estimates Estimates of indirect and induced spending resulting from the projected increase indirect spending Fiscal impact analysis estimating the amount of new fiscal tax revenue resulting from the increased spending Estimate of the amount of tax revenue rebated to support the financing of the project Results The estimates and analysis were included in a bond offering statement for the ' Mamott headquarters hotel to be built across the street from the Golorada Convention Center The proposed headquarters hotel project's tax-exempt bonds were sold on June 17, 2003 and construction began later that month ' ~ HVS Convention, Sports & EMertaimnent Facilities Cor~ulting ~_~ 445 West Erie., Suite 1-A, Chicago, Ilitwls 6Ofi1O ' INTERNATIONAL Phone312.587:99OO FaX312.5$7.9~8 www:hvsintemational.com Project Type: Convention Center Headquarters Hotel Size: 1,100-room headquarters hotel Expansion of the Colorado Convention Center: Exhibit: 292,000 sf Ballroom: 50,000 sf Meeting Room: 35,000 sf Role: Economic Impact Analyst Dates of Service: 2003 COLORADO CONVENTION CENTER HEADQUARTERS HOTEL Denver, Colorado CIfeM: City of Colorado Springs Project Type: Convention Center Feasibility Role: Feasibility Consultant, Economic Impact Analyst Dates of Service: 2003 The City of Colorado Springs hired HVS to conduct a feasibility analysis of a convention center and headquarters hotel in downtown Colorado Springs. This feasibility analysis included a detailed .study of both the convention center and the hotel. HVS developed facility recommendations and projected the demand and financial operations for both facilities. HVS then conducted an economic impact analysis that estimated the amount of new spending and employment the proposed facilities would support in the City economy. Project Scope ' . Analysis of peer markets and facilities Demand analysis ' . Facility recommendations Demand and operating projections ' . Economic Impact Analysis Results ' . Study is in progress ' ~_ HVS Com-erdion, Sports 1E Frrtertaimnerd F~ilities Consulting 445 west Erie, Suite 1-A, Chicago, li~nois 6Q61o ' INTERNATIONAL phOr~e312.5H7.99Q0 faX312.587.9~ wuuwi.hvsintemaliOnalcom COLORADO SPRINGS CONVENTION CENTER Colorado Springs, Colorado MIDWEST AIRLINES CENTER, U.S. CELLULAR ARENA, MILWAUKEE THEATRE Milwaukee, Wlsconsln r ' Over the past six years, HVS staff has provided various services to the Wisconsin Center District, the operator of the Midwest Airiines Center which is the premier meeting place in Wisconsin. We performed various market and feasibility studies and provided projections of tax revenues that support the project financing. First opened in 1998, the convention center ' complex now generates an operating profit and another phase of expansion is under consideration. HVS also analyzed a third phase of expansion, which involved the renovation of a historic auditorium. Projecf Scope Financial advisory services for original construction project Feasibility analysis of an expansion of the convention center, including demand and operating projections ' . Financial projections of operating revenues and expenses for the U.S. Cellular arena Analyzed concept plans for auditorium improvements and creation of a performing arts venue ' . Market study assessing the effectiveness of the proposed improvements in attracting additional events Tax projections for financing the original project, expansions and auditorium renovations ' . Economic impact analysis of Midwest Airlines Center Expansion Results ' . The Wisconsin Center District successfulty completed the expansion of the Midwest Airlines Center and is now in the process of implementing the recommendations for conversion of the auditorium to a pertomting arts venue scheduled to open in Fa112003 Client: Wisconsin Center District Project Type: Market & Feasibility Study Economic Impact Analysis Size: Convention Center: 266,000 square feet of exhibition, meeting and ballroom space Arena: 12,700 seats Theater: 4,100 seats Role: Financial Analyst, Consultant Dates of Service: 1995 -present HVS ComeMion, Sports & EMertainmeM Facilities Consuttim~ ~~°~ 445 West Erie, Suite 1-A, Chicago, Illinois 60610 ,xraeNnrioxnL Phone 312.587.9900 Fax 312.587.9908 www.hvsintemational.com OMAHA CONVENTION CENTER HOTEL (HILTON) Omaha, Nebraska 1 In 2000, HVS analyzed the feasibility of a convention center headquarters hotel in Omaha, Nebraska. Based on this study, the City recognized that a headquarters hotel development in Omaha was likely to require public participation. HVS was further ' engaged to assist the City in the selection of, and negotiations with, the hotel developer, operator, and construction manager. ' Project Scope Evaluation of proposals for design, construction, management and financing of ' the hotel Developing a financing model and estimation of financing capacity ' . Negotiations with development teams on the terms of a proposed public/private partnership for a development agreement and a hotel operating agreement Assistance in the preparation of financing documents ' . Drafting and negotiation of a room block commitment agreement Presentations to rating agencies and bond insurers Results $103 million intax-exempt hotel revenue bonds were issued in April 2002 ' . Ambac provided a financial guarantee for the entire bond issue resulting in a Moody's Aaa and a Standard & Poors AAA rating ' . Headquarters hotel is under design and construction and is scheduled to open Spring 2004 Client: City of Omaha Project Type: Development Assistance for Headquarters Hotel Size: 450-room on-site hotel Project Value: $76 mm Role: Financial Analyst, Development Consultant Dates of Service: 2001 - 2002 ' ~ HYS ComeMion, Sports & Entertain~~ Facilities Consulting ~~_~~~~ 445 West Erie, Suite 1-A, Chicago, Illinois 60610 INTERNATIONAL phone 31.587.9900 Fax 312.587.9908 uvww.hvsintemational.com ' OVERLAND PARK CONVENTION CENTER & SHERATON HOTEL Overland Park, Kansas HVS staff provided the City of Overland Park, Kansas with a full range of project assistance guiding the City through the process of developing a convention center and adjacent hotel. Project Scope Convention center and hotel feasibility analyses Hotel tax revenue projections Financing and economic impact analyses ' . Management selection Hotel developer solicitation and general development assistance Results ' . The City issued general obligation debt to support construction of the convention center, and financed the hotel with tax-exempt hotel revenue bonds The facility opened in November 2002 Client: City of Overland Park Project Type: Convention Center with On-Site Headquarters Hotel Size: 100,000 square feet of meeting, banquet & exhibition space with attached 412-room Sheraton Hotel Project Value: $148 mm Role: Financial Analyst, Consultant Dates of Service: 2000 - 2002 ' - HYS Convention, Sports 8 Entertainm~t F~ilities Consulting ~~~ 445 West Erie, Sude 1-A, Chicago, Illinois 60610 ~NraxrrnrioNn~ Phone 312.587.9900 Fax 312.587.9908 www.hvsintemational.com 1 ' CONVENTION CENTER & HOTEL Raleigh, North Carolina Client: City of Raleigh Project Type: Development Assistance for Convention Center and Headquarters Hotel Role: Financial Analyst, Consultant Dates of Service: 2002-present In October 2002, HVS was retained to provide development assistance for a proposed new convention center and hotel in downtown Raleigh on behalf of a nineteen member Convention Center Steering Committee that was appointed by the ' Raleigh City Council. For this project, HVS teamed with LMN Architects, who bring extensive national experience in the physical planning and design of convention centers and hotels. ' Project Scope Review of a previous convention center feasibility study ' . Coordination with the overall downtown plan Analysis of peer markets and facilities ' . Site analysis Demand analysis ' . Business and financing plan Public communication of the plan ' Results HVS is currently working with the Steering Committee to develop a financing plan for the recently selected site ' . The City Council of Raleigh and the Wake County Board of Commissioners have voted to acquire the land on the convention center and headquarters hotel site ' identified in the HVS feasibility study. The City recently issued an RFP for assistance in soliciting developers for the recommended headquarters hotel. ' ~~ HVS Comnerdion, Sports & Entertainment Facilities Consuttirn~ -~~ 445 West Elie, Suite 1-A, i;hicag©, 86nois bY1610 ' INTERNATIONAL Phot~312.58.7.9900 Fax 312..587.9908 wuuw:hvsintematrc~naLcom a7WEENEY CIVIC CENTER Santa Fe, New Mexico Client: City of Santa Fe PrajectType: Canvention/Civic Center Feasibility Study Size: 22,000 square feet of conference/trade show floor area and breakout rooms Project Value: $30 mm Role: Financial Analyst, Consultant Dates of Service: 2002 -present The Gity of Santa Fe has sought to facilitate the development or redevelopment of the Sweeney Civic Center for several years. HVS teams with LMN Architects and Lloyd & Associates Architects to complete the civic center feasibility study and schematic designs. Project Scope Review previous feasibility studies of the Sweeney Center Update target market research for the facility and the Civic Center District Update previous studies of comparable and competing civic centers/convention facilities/meeting and art spaces Provide information on current and potential community and municipal use Investigate mu~iple use needs Analyze financing options Results HVS' recommendations an: currently under review by the City Council fors cor~aer~ion, sports a Entertaimne~d Facilities t:o~ultir~g -~~ 445 west brie, Suite 1-A, Chicago, )tirrois 60610 INTERNATIONAL i~r~312.5$•7.9900 rax312.5t37.9905 wiww.hvsirdeerr~a~naLcom HOTEL & CONFERENCE CENTER Suffolk, Virginia The City of Suffolk hired HVS Convention, Sports & Entertainment Facilities Consulting to conduct a feasibility study on a proposed conference center planned in conjunction with a new hotel. A previous study by HVS identified the market potential for a hotel and the City needed a more detailed analysis of the conference center element of the proposed facility. HVS assessed the market for conference space and detailed the facility programs and demand characteristics of existing facilities in the area. Surveys and interviews with state association event planners and local businesses provided information on various segments of event demand. HVS estimated the level of group and meeting event demand and room nights. The City also asked HVS to conduct an economic and fiscal impact analysEs of the proposed project. Finally, HVS projected future revenues from the City's hotel and prepared meals taxes to assist the City in determining the level of revenue that would be available to help pay for the debt service on project financing. The City of Suffolk is currently negotiating with developers and preparing to issue debt to finance the public portion of project costs. Project Scope Assessment of area hotel conference centers Surveys & interviews with state association event planners, local businesses Demand analysis Economic impact study Projections of hotel and prepared meals taxes Results The City is negotiating with a private developer HVS study will be part of offering statement for project financing Client: City of Suffolk Project Tye: Hotel and Conference Center Size: 150 Guest Rooms,14,00a Square feet of Conference Space Role: Feasibility Analysis, Economic and Fiscal Impact Study, Hotel and Prepared Meals Tax. Projections Dates of Service: 2002-2003 ~~ HVS Cornrention, Sports & Enterteirrment FeCilitieS Consulting 445 West Erie, Sui[e 1-A, Chicago, Niraris 60610 INTERNATIONAL F'hora:.312.5H7.99((~ FaX312:587.9908 WWW.hvsintematiorrdl.eom ' CONFERENCE CENTER & HOTEL Youngstown, Ohlo Compass Facilities Management, working as an advisor to the City of Youngstown, Client: hired HVS to conduct a feasibility analysis of a hotel with conference space in Compass Facilities downtown Youngstown. The City received a federal grant to develop an arena. In an Management ' effort to further its overall urban revitalization efforts, the City decided to pursue joint development of an arena and a hotel facility. The City's goal is to leverage the grant project Type: money for the arena to improve the feasibility of a downtown hotel by entering into a Hotel and Conference ' joint development agreement with a developer that would build and operate both Center facilities. HVS studied the market for a hotel conference center in Youngstown and Size: recommended a 150-room hotel with 11,000 square feet of conference space. 150 Guest Rooms, 11,000 ' Compass a~ the City are utilizing the demand and operating projections to assist in Square Feet of Conference their search far interested developers. Space ' Project Scope Role: Feasibility Analyst Assessment of area hotel conference centers Dates of Service: Surveys & interviews with state association event planners, local businesses 2003 Facility Recommendations Demand analysis Results HVS recommended an appropriate facility program and projected demand City is in the process of identifying interested developers - HVS Convention, Spits & Ent~lainment Facilities Consufhng ~~°~ ~!~ 445 West Erie, Suite 1-A, Chicago, Illinois 60610 txTSxxnTioxnL Phone 312.587.9900 Fax 312.587.9908 www.hvsintemational.com LMN Architects LMNARCHITECTS Firm Profs/e LMN Architects offers professional design services in architecture, planning and interior design for a wide ' range of project types. Established in 1979, LMN has grown to 100 professionals whose design expertise has been recognized with over sixty design awards and eight design competition commissions. LMN is a national design practice that specializes in the design of public events facilities, as well as mixed-use complexes, ' retall, office and education facilities. In all of our work, LMN applies design skills that have been in demand for projects of major importance across the United States. t LMN has provided convention center planning and design services for over 55 convention center projects both nationally and internationally. Much of that work included physical planning, programming, and conceptual design in support of a feasibility study. From this work, we have acquired a fundamental ' understanding of the forces and determinants that drive successful convention center projects. We have participated in a great deal of user group charettes with the purpose of achieving new and innovative solutions to accommodating convention center needs. From each of our projects we have the perspective and ' experience of working with association executives, event planners, facilities managers, and service contractors. The best intentions of architects who do not understand the complexity of what seems like a simple building type, will only create a facility that is difficult to market and manage. Convention center physical planning is an essential component of a complete feasibility study, as available site footprint areas and context configurations often require that special attention be paid in areas of creative ' plan and section geometry to attain all of the program requirements, optimum relationships, and site planning opportunities which will meet the highest of industry standards. This work typically includes: • Summary Program identifying the make-up and distribution of convention center functions. ' Site plan showing building footprint, site circulation, traffic access, building service, building entry, etc. • Massing model, identifying scale and context issues. ' Conceptual building elevations, identifying materials, scale, and image. • Conceptual building sections establishing floor-to-floor heights. • Plans and cross sections at the same scale to present the Convention Center Facilities Layouts and 1 the associated Transportation Network modifications. • Narrative reports presenting assessment of Urban Design, Preservation, and Transportation issues along with Convention Center imagibility. t The concept design will provide sufficient detail of the master plan, architectural, and engineering elements to communicate physical characteristics, estimate reliable construction costs, identify potential ' constructability issues and establish an overall project budget Recent facility needs assessments include: • Raleigh/Wake County Convention Center Feasibility Review and Site Selection Study, Raleigh, NC (in association with HVS International) ' Wichita Century II Convention Center Feasibility Study, Wichita, KS (in association with HVS Internationan ' Santa Fe Civic Center District Action Plan, Santa Fe, NM (in assodation with HVS International) • NewAnchorage CivicandConvention Center FeasibilityStudyReviewandSiteSelectionStudy,Anchorage, AK ' Cleveland Convention Center Feasibility Study, Cleveland, OH • Los Angeles Convention Center Expansion Master Plan Study, Los Angeles, CA • Washington State Convention and Trade Center Expansion, Seattle, WA LMNARCHITECTS Chris Eseman, A/A Partner Chris Eseman has over 25 years of architectural experience including the programming, planning, and design of several award-winning public assembly and urban design projects. Promoted to Partner in 1997 for his exceptional design and management skills, Chris has provided guidance and Partner level assistance with many of LMN's large, public projects. Ghris's extensive and divers background with many market sectors results in considerable experience with diverse sits issues, technical requirements, on-budget costcontrol, on-time scheduling and delivery, and a design result that meets the artistic and programmatic requirements of a project. Education: Master of Science, Architecture and Urban Design,1983, Columbia University Bachelor of Atrhitecture,1976, Lawrence Institute of Technology Professional Registration: National Council of Architectural Registration Board (NCARB) State Registrations: Washington, Arizona, Missouri, Louisiana, Nevada, North Carolina Competit.ioras and Awards: Milwaukee Riverfront Design Competition, Milwaukee, Wl New City Hall Design Competition, Leesburg, UA First Award Competition, Melbourne, Australia Published WLAND ARCHITECT, November-December, 1983 Gallery Exhibition: "Mending the Urban Fabric," Currier Gallery, Manchester, NN Dallas Chapter AIA Honor Award, Dallas Convention Center, Dallas, ZX NH AIA Design Excellence Award, Portsmouth Music Hall Renovation, Manchester, NH AIA Honor Award, The Renovation of Carnegie Hall, New York, NY Design Advancement Grant, National Endowment for the Arts, Design of Cities Program Scholarship Award, Columbia University, 7982-1983 Research Grant Award, Student Chapter, American 1 nstitute of Architects ' Selected Project Experience • Convention Centers Raleigh-Wake County Convention Center Expansion, Raleigh, NC Cincinnati Convention Center Expansion, Cincinnati, OH Wichita Century II Expansion & Modernization Study, Wichita, KS ' Anchorage Civic Convention Center Site Selection & FeasibBity Study, Anchorage, AK Phoenix Civic Plaza Conceptual Building Site and Planning Study Phoenix, AZ Cleveland Convention Center Site Selection Analysis, Cleveland, ON ' Baton Rouge Riverside Centroplex Expansion, Baton Rouge, to Minneapolis Convention Center Expar~ion, Minneapolis, MN ' Wildwoods Convention Center Expansion, Wildwood, NJ Washington State Convention and Trade Center Expansion, Seattle, WA Washington State Convention and Trade Center Expansion Feasib~hty Study, Seattle, WA 1 ' LMNARCHITECTS Chris Eseman, AIA Continued ' Convention Center Projects Contrnued San Antonio Convention Center Expansion Study, San Antonio, TX Baltimore Convention Center Expansion, Baltimore, MD Dallas Convention Center Expansion, Dattas, TX ' - Sports Facilities Regional Special Events Center, Everett, WA New Baseball/Soccer Facility, University of Washington, Seattle, WA ' Baseball/Soccer Facility Master Plan, University of Washington, Seattle, WA Husky Pool Master Plan, University of Washington, Seattle, WA Bellevue Crown Center Master Plan, 8etteuue, WA ' Washington Gateway Special Events Center, 1/ancouver, WA Bank of America Arena at Hec Edmunds~n Pavilion, University of Washington, Seattle, WA Husky Hall of Fame, University of Washington, Seattle, WA The Lakeside School Athletic Center Expansion and Renovation, Seattle, WA Hec Edmundson Pavilion Phase I Interior Upgrades, University of Washington, Seattle, WA Women's Fastpitch Softball Facility, University of Washington, Seattle, WA ' Athletics Fields Masterplan, University of Washington, Seattle, WA Physical Education Facility, Northern Montana College, Havre, MT ' Educational Facilities Student Union Renovation, University of New Hampshire, Durham, NH South Whidbey Island High School, Langley, WA - Cultural Facilities Bellevue Crown Center Master Plan, Bellevue, WA Seattle Center Masterplanning and Design Studies, Seattle, WA ' Benaroya Hall, Seattle, WA Fifth Avenue Theater Expansion Feasibility Studies, Seattle, WA Renovation of Carnegie Hall, New York, NY ' Renovation of Portsmouth Music Hall, Portsmouth, NH • Commercial Facilities ' Everett Office Building {Shell), Everett, WA Input Systems Inc., Bedford NH Market Square Masterplan, Manchester-, NH Renovation of Hawley Lane Mall, Trum6ult, CT Stroh Brewery Corporate Offices, Detroit, MI Numerics Bank Operations Center, Manchester, NH ' Segale Office Building, Seattle, WA LMNARCHITECTS Mark Reddington, FA/A ' Partner ' Mark Reddington is acclaimed for his design expertise in meeting complex project challenges that result in architectural works of sensitive and enduring quality. As the designer of many of LMN`s major projects, Mark's design leadership has positioned LMN as nationally prominent designers of significant ' public facilities. Each design develops a unique expression that responds to its particular influences, creating buildings that are both individually distinctive as well as integrated to their setting. Mark's designs have been widely recognized with awards throughout the United States. Education: Bachelor of Architecture, 1977, University of Cincinnati ' Professional Registration: National Council of Architectural Registration Boards (NCARB) State Registrations: Washington, Ohio, New Jersey, Tennessee, Colorado, Nevada ' Prof~onal Affiliations: American Institute of Architects (AIA) National Committee on Design ' United States Institute of Theatre Technology Adjunct Professor - Sch~l of Architecture, Montana State University 1993 Guest Critic -School of Architecture, University of Washington ' Guest Critic - School of Architecture, University of Cincinnati Continuing Education: ' Harvard University Graduate School of Design Massachusetts Institute of Technology University of Cincinnati College of Business Administration Selected Project Exper}ence ' Convention Centers Cincinnati Convention Center Expansion, Cincinnati, OH Raleigh-Wake County Convention Center Expansion Feasibility Study, Raleigh, NC ' Los Angeles Convention Center Expansion Master Plan Study, Los Angeles, CA Anchorage Civic & Convention Center Feasibility Study, Anchorage, AK Reno-Sparks Convention Center Addition & Renovation, Reno, NV ' Omaha Comention Center and Arena, Omaha, NE Cleveland Comention Center Concept Design Study, Cleveland, OH South Towne Exposition Center, Sandy, UT ' Washington State Comention & Trade Center Expansion, Seattle, WA Cook Convention Center Expansion, Memphis, TN San Jose Convention Center Expansion Feasibility Study, San Jose, CA ' Meydenbauer Center Expansion Feasibility Study, Bellevue, WA Wildwood Comention Center, Wildwood, NJ LMNARCHITECTS Mark Reddington, FA/A Continued Convention Centers Continued Wenatchee Convention Center Expansion, Wenatchee, WA Dallas Convention Center Expansion, Dallas, TX Spokane Convention Center Expansion, Spokane, WA Santa Fe Civic Center District Action Plan, Santa Fe, NM St. Paul Civic Center Expansion, St. Paul, MN Dane County Exposition Center, Madison, WI Colorado Convention Center, Denver, CO Minneapolis Convention Center, Minneapolis, MN Fresno Convention Center Expansion Study, Fresno, CA Tacoma Convention Center Expansion Study, Tacoma, WA Calgary Convention Center Expansion Study, Calgary, Alberta, Canada • Cultural Facilities Marion Oliver McCaw Hall, Seattle, WA Benaroya Hall, Seattle, WA Millennium Carillon, Olympia, WA Mercer Arts Arena Renovation, Seattle, WA Glacier Performing Arts Center Feasibility Study, Kalispell, MT Sacramento Community Center Theater Renovation Study, Sacramento, CA Seattle Pacific University Auditorium Study, Seattle, WA University of Idaho Music Center Study, Moscow, ID Museum of History and Industry, Seattle, WA Little Theatre Renovation, Seattle Central Community College, Seattle, WA Western Nevada Community College Center for the Arts, Carson City, NU Bank of America Performing Arts Center, Wenatchee, WA Adams State College Fine Arts Renovation & Addition, Alarnosa, CO Northshore Performing Arts Center Feasibility Study, Bothell, WA Seattle Children's Theatre Technical Pavilion, Seattle, WA Cannon Center for the Arts, Memphis, TN Fifth Avenue Theater Expansion Feasibility Studies, Seattle, WA Eastside Performing Arts Center Study, Bellevue, WA U.S. Navy Band Facility, Bangor, WA Sacramento Memorial Auditorium Study, Sacramento, CA Seattle Centee Masterplanning and Design Studies, Seattle, WA LMNARCHITECTS Se%ter~l Project Experience convention Center Projects • Anchorage Civic & Convention Center Feasr631ityReview Anchorage, AK and Site Selection Study • Baltimore Convention Carter Expansion Baltimore, MD • Baton Rouge Riverside Centroplex Expansion Baton Rouge, LA • Bicentennial Pavilion Tacoma, WA • Bismarck Convention Center Bismarck, ND • Bremerton Conference & Civic Center Bremerton, WA • Cairn Convention Center Study Cairo, Egypt • Calgary Convention Center Expansion Study Calgary, Canada • Cincinnati Convention Center Expansion Cincinnati, OH • Cleveland Convention Center Site Selection Analysis Cleveland, OH • Colorado Convention Center Denver; GO • Cook Convention CenterExpanslon Memphis, TN • Dallas Convention CenterExpansion Dallas, TX • Dane County Exposition CenterExpansion Madison, WI • Des Moines Convention Center Des Moines, IA • Discovery Place Convention Center Expansion Study Vancouver, B.C. • Duluth Convention Center Expansion Duluth, MN • Fresno Convention Center Study Fresno, CA • Guangzhou Convention Centre Guangzhou, China • Havraii Convention Center Honolulu, HI • Kansai "Aeropolfr"Convention Center Study Osaka, Japan • LaCrosse CenterShrdy LaCrosse, WI • Lane CountyF.xhibition Fac}IityFxpansion Eugene, OR • Las Vegas Convention CenterExpansion Study Las Vegas, NV • Lincoln Convention Center I3ncoln, NE • Los Angeles Convention CenterExpansion MasterPlan Study Los Angeles, CA • MeydenbauerCenterExpansion PeerReview Bellevue, WA • Meydenbauer Center Expan~on Study Bellevue, WA • Minneapolis Convention Center Minneapolis, MN • Minneapolis Convention Center Expansion Minneapolis, MN • Nara Conference Center Study Nara, Japan • Newport Events & Exposition Centel Newport, OR • Nolen Terrace Convention Center Study Madison, WI • Northwest Fxpasition Center Study Tukwila, WA • Oakland Convention CenterExpansion FeasrbilityStudy Oakland, CA • Olympia Arts and Conference Center Olympia, WA • Omaha Convention Center & Arena Concept Design Omaha, NE • Phoennr Civic Union Plaza Study Phoenix, AZ • Raleigh/Wake County Convention Center Expansion Study Raleigh, NC • Reno-Sparks Convention CenterExpatrsion Reno, NV ' LMNARCHITECTS Convention CenterProjects continued ' Sacramento Convention CenterExpansion Sacramento, CA • Salem Conference Center & Hotel Salem, OR San Antonio Convention CenterExpansion Study San Antonio, TX ' • San Diego Convention Center San Diego, CA • San Jose McEnery Convention CenterExpansion Study San Jose, CA Santa Fe Civic Center District Action Plan Santa Fe, NM ' • Seoullnternational Exhibition Center Seoul, South Korea • Shandonglnternational Conference & Exhibition Centre Shandong, China • South Padre Island Convention Centre South Padre Island, TX • South Towne ExpusitYon Center Sandy, ITf • Spokane Convention Center Expansion Study Spokane, WA • Spokane Convention Center Expansion Spokane, WA • St. Paul Convention/Civic Center Expansion St Paul, MN • Tacoma Convention Center Expansion Study Tacoma, WA • dancouver Convention and Exhibition Centre F.xparssion Vancouver, B.C. ' • Washington State Convention & Trade CenterExpansion Seattle, WA • Washington State Exhibition Hall & Parking Garage Seattle, WA • Wenatchee Convention Center Expansion Wenatchee, WA • Wichita Centuryll Expansion & Modernization Study Wichita, KS • Wildwoods Convention Center Wildwoods, NJ • Yakima Convention Center Expansion Yakima, WA • Yellowstone Conference Center Big Sky, MT Convention/Conference/F,xhibition & Multi-Use Facilities • Washington State Exhibition Hall &Parking Garage Seattle, WA • Washington State Special Events Center Vancouver, WA • Bremerton Conference and Civic Center Bremerton, WA • Bellevue Crown Center Master Plan Study Bellevue, WA Salem Conference CenterandHotel Salem, OR ' • Renton Multi-Event Center Renton, WA • Bismanclr Civic Arena Renovation Bismarck, ND • Skagit VaUeyPerformingArts & Conference Center ML Vernon, WA • King County Stadium KINGDOMS Seattle, WA • Portland Memorial Coliseum Expansion Study Portland, OR ' Seattle Center Coliseum Expansion Study Seattle, WA • Tacoma Dome Tacoma, WA • Yakima Sundome Yakima, WA LMNARCHITECTS 1 Convention Center Feasibility Studies ' Andwragre Civic & Convention CenterFeasibrlityReview Anchorage, AK and Site Selection Study • Bellevue Crown Center Master Plan Study Bellevue, WA ' • Cairn Convention Center Study Cairo, Egypt • Calgary Convention Center Expansion Study Calgary, Canada Cleveland Convention Center Site Selection Analysis Cleveland, OH ' • L13scoveryPlace Convention Center Expansion Study Vancouver, B.C. • Fresno Convention Center Study Fresno, CA Kansas "Aeropola" Contention Center Study Osaka, Japan 1 • LaCrosse Center Study LaCrosse, WI • Las Vegas Convention Center Expans%n Study Las Vegas, NV • Las Angelus Convention Center Expansion Master Plan Study Los Angeles, CA • Meydenbauer Center Fxpan$on Study Bellevue, WA • Nara Conference Center Study Nara, Japan • Nolen Terrace Convention Center Study Madison, WI • Northwest Exposition Center Study Tukwila,. WA • Oak~nd Convention CenterExpansion Feasibility Study Oakland, CA • Omaha Convention Center & Arena Concept Design Study Omaha, NE • Phoenix Civic Un%n Plaza Study Phoenix, AZ • Portland Memorial Coliseum Expansion Study Portland, OR • Raleigh/Wake County Convention Center Expansion Study Raleigh, NC • Renton Multi Event Center Renton, WA • San Antonio Convention CenterExpansion Study San Antonio, TX ' San Jose McEnery Convention Center Expeansion Study San Jose, CA • Santa Fe Civic Center District Action Plan Santa Fe, NM • Seattle Center Coliseum Expansion Study Seattle, WA ' • Seattle Center Master Plan/Design Studies Seattle, WA • Seoul International Exhibition Center Seoul, South Korea • Spokane Convention Center Expansion Study Spokane, WA ' Tamma Convention Center Expansion Study Tacoma, WA • Washington State Convention & Trade CenterExpansion Study Seattle, WA • Washington Gateway Special Ehents Center Vancouver, WA 1 • Wichita Centuryll Expansion & Modernization Study Wichita, KS LM/VARCHITECTS Recent Design Awarids LMN has received more than ltxl design awards and has won 9 design competitions. We strive for design excellence, oreating facilities that make a meaningful and enriching integration of their purpose and place. Some of our recent design awards include: 2 0 0 3 Environmental Design ~ Construction, Excellence in Design Runner Up New Instructional Building, Bellevue Community College 2 0 0 3 ALA/AIA Library Building Award of Excellence Seattle Public Library Temporary Central Library 2 0 0 3 AIA What Makes I t Green? Sustainable Design Award Shoreline Community College Master Plan 2 0 0 3 SIOR Office Development of the Year The Summit Towers, Bellevue, Washington 2 0 0 3 City of Redmond Excellence in Design Award AT&T Wireless Building #5 2 0 0 3 AIA Washington Council Civic Design Awards, Award of Merit New Instructional Building, Believe Community College 2 0 0 3 AIA Washington Council Civic Design Awards, Award of Merit Keystone Building, University of Washington, Tacoma, Washington 2 0 0 3 Associated General Contractors of Amerita, Award of Merit Seahawks Stadium and Exhibition Genter & Parking Garage 2 0 0 2 AIA Seattle Chapter, Award of Merit Keystone Buiking, University of Washington, Tacoma, Washington 2 0 0 2 Facilities Accessibility Advisory Committee Universal Design Award Instructional Technology Center, South Seattle Community College, Seattle, Washington 2 0 0 2 National Council of Structural Engineers Association Award of Merit 90"' Street Bridge, Redmond Washington 2 0 0 2 Northwest Construction's Best of 2002 Honorable Mention New Instructional Building, Bellevue Community College, BeDeve, Washington 2 0 0 2 American Public Works Association of Washington, Project of The Year 90~" Street Bridge, Redmond> Washington 2 0 0 2 WACA Excellence in Concrete Construction, Special Applications -Artistic Merit 90'~ Street Bridge, Redmond, Washington LMNARCHITECTS 2 0 0 2 WACA Grand Award, Best Overall Among All Categories 9()`~ Street Bridge, Redmond, Washington 2 D 0 2 SiOR Office Development of the Year Award Civica Office Commons, Bellevue, Washington 2 0 0 2 AIA What Makes It Green? Sustainable Design Award The Paul G. Allen Center for Computer Science, University of Washington, Seattle, Washington 2 0 01 AIA National HonorAward Benaroya Hall, Seattle, Washington 2 0 01 National Association of Industrial and Office Properties (NAIOP) Mid-Rise] Central Business District Office Development of the Year Civica Office Commons, Bellevue, Washington 2 0 0 1 Honolulu ChapterAlAAward of Excellence Hawaii Convention Center, Honolulu, Hawaii 2 0 01 Utah ChapterAlAAward of Merit South Towne Exposition Center, Sandy, Utah 2 0 01 Vision 2020 Award Downtown Tacoma Plan, Tacoma, Washington 2 0 01 AIA Washington Council Civic Design Merit Award Her Edmondson PavIlion Renovation, University of Washington, Seattle, Washington 2 0 01 AlA Washington Council Civic Design HonorAward 90`" Street Bridge, Redmond, Washington 2 0 01 Northwest Construction's Award of Excellence, Heavy Highway Category 90"' Street Bridge, Redmond, Washington 2 0 0 1 Northwest Construction`s Award of Excellence, Tenant Improvement Category Seattle Central Library's Temporary Library, Seattle, Washington 2 0 0 0 Seattle Chapter, AUl Not Yet Built, Award of Commendation Reno-Sparks Cornention Center Addition & Renovation, Reno, Nevada 2 0 D 0 Wisconsin Chapter, AIA HonorAward Dane County Exposition Center, Madison, Wisconsin 2 0 0 0 APA Excellence in Planning HonorAward, Transportation Category Downtown Tacoma Plan, Tacoma, Washington 2 0 0 0 Northwest Construction`s Best Public/Private Project; First Place Seattle Children's Theatre Technical Pavilion, Seattle, Washington ~ a"`~ . t- .~; .'~ W0. Y. .~t' ~~~ -~~`a.. _' `! ~ sleigh/wake county convention center feasibility review and site selection study This study advances previously completed market analyses by confirming market demand, refining the program, and proposing funding strategies for a new convention center facility and a new convention center hotel. In addition, the study examined 13 potential convention center sues in downtown Raleigh and the surrounding suburbs, considering each site's performance against 27 different criteria, ultimately producing a preferred site which is located downtown, near existing hotels and visitor amenities. The new 500,000 square foot convention center facility will include 150,000 square feet of exhibit hall space, 30,000 square feet of meeting rooms, and a 32,000 square foot ballroom and an adjacent full-service 450-room hotel. LMN's design concept takes maximum advantage of existing topography, carefully siting the exhibit hall at the lowest point of the site, intercepting trucks at grade prior to entering the city street system, this configuration results in a "buried" exhibit hall at the site's highest point, reducing the mass of the building. Meeting rooms and ballroom facilities are located on the upper level, at grade at the site's high point with lobbies and prefunction areas ringing the perimeter, while the loading dock is "lidded" with retail, producing active uses and lively facades on all sides of the project. The convention center s primary entry and the new hotel are to be located along the Fayetteville Street Mall, Raleigh's visual and cultural center which is currently undergoing a major transformation -reintroducing traffic and removing the small and outdated existing convention center, reopening the visual axis between the State Capitol and BTI Arts Center. location & year of comp/etion Raleigh, North Carolina 2003 client Convention Center Steering Committee City of Raleigh and Wake County architect LMN Architects in association with HVS International LMN ~ .- -a ~.rr- _ .. '~ L . _, ~-t nit ~ , ~, LF-~ _ ~: - °~.. .i. ~' ~ M - ..., m- .- ~r~~antial Downtown Sites Key, X POternial Fatal Flaw O tainimel to No Corn liance with Coterie t) A uete Com liance with Crdeoa • IStron Com liance with Coterie ite Alternative Characteristics Sites: Q to m 0 y m~ /0 m • rn U m O O y O le ~ _• m W m ~ _O m LL el m • N C7 W m m N 2 W m O ai ~ al O 0 m Y i J ~ to ! re I t0 Y an d m 0 m m N N Site Characteristics I I ! ' I I 1 Compatabili with Adjacent Uses O_ • _• • ~ X • U '..~ ~ U ! U I U 2 Neighborhood Impact O • • O ~ X • • • I • • 3 Ca acit of Inirastruaure _ •_ • • • i • • U • ~ • •_ 4 Potential for Expansion __ U ~ • • O • • ~ ~_ I. ~_ 5 Ease of Traffic Flow -Note 5 • • • ~ , i_ • O • U U • 6 Access [o Ai ort • ~ ~ • • ~ • • • • ~ _ • 7 Access to Public Trans ortation • • _ • • I I •_ I • U O U U 8 Access Trucks with Minimal Traffic I act ~ ~_ ~ _~ O I I • • • • _• • 9 Proximity to Contiguous Parkin -Note 1 • I • O U i ~ O_ O_ ~ ~ ~ • tO Ott-site Parkin -NOte2 Proximi to _ • ~ • • I O • O • U U 1 1! _ Proximi to Hotel Rooms -Note 3 • ~ I _ • _ O _ • O H O O • O 12~ProximitytoShopping~Entertainment • i• 0 0. I I O I O I O I O U • 131Proximl to Restaurants ~ • • • U O O J_O I,._U_ .~ 14'Proxim' to Cultural Facilities • I• U_ O • O O I O O O 151 Aesihetic Image/impact ~ • I • 0 • • O ~ • • O 16 Raleigh/W eke County Character Opportunities • • I • U • • ! O i • ! • C 771 High De9lree of Walkabili • • I U U_ ~ O C O O O O 18 Security: Lack of CrimelAhractiveness of Area _ _ •_ I • I • • • • • i • I • I • 19 Potential Site A uisition Cosi X X ~ 20 Potential for Return on Investment • _ • ~ • O O U . U ~ U ~ U 21 - -- Potential for'Leveragino' Other Funding Sources O O O • _ _ O U O ' C • I i~ 22 Potential for Related Development ~ • • • O U O ! • • • 23 Relative Ease of ConsWCtabili O U U I U U • • ' • • • 24 --- - _ 2 Blocks - 90 feet in height O • • f .-r • • • C~ • i ? _ i _ •_ 26, Zoning Compliance -Heigh[ O • • • • • rJ • j • • 26'. --- Number of Streets Closed -Note 4 t 2 t 0 0 0 0 0 O i 0 27 Number of Streets Bridged -Note 4 {similar 0 0 0 1 1 0 0 0 0 ~0 1 0 sleigh/wake county convention center feasibility review and site selection study LMN W Q y U ~ WEBT CABARRU88TREET _ ~ r =,N--_- '. :~ w r I W ._..___... ; W ; ~__ ._i __~ o - - T0~2I ~llh~ Eb~oion Ef10mm ~ F !' ~ i Fia1C '~e HapO F1~A a LL ,i ~~ 150;000 SF Q ~~ °' I I ~ ;i m , ..__,~ W I' 'IOp AY'P' m I I _.J L WEBT LENOR STREET trier Level Plan r ~~ I I ~ L z~ ~ ~ N fi 8S ^ ~ 5 ME9T CABARRU88TREET ~ i Im I-- C - ~ I _ O ~ `m 1- C i 1 _ i ~ I I L. _._. _. _. _. _~_-___~-~-.-~---- WE5T ENgR STR f-f Upper Level Piar L ~~. o » no xc ' _'._'1 ~ 1-'-' y I I arruaol. - ua. i W W!I 1 _F 1 N ~. I G I ~ I m i N = 1 j 1 O i tll i i I I I_ _._ _ _._._.~._. _._ J sleigh/wake county convention center i feasibility review and site selection study LMN salem conference center and hotel This project occupies an entire city block within the central business core of downtown Salem, the master plan of which includes a conference center with 12,000 s.f. of flexible meeting rooms and a 12,000 s.f. ballroom/ exhibit area, a 200-room hotel and restaurant, and 300 stalls of underground shared parking. The project provides a pedestrian friendly environment, including ablock-long indoor public gallery, incorporates significant sustainable design elements, and is currently in design devebpment of Phase 1 of a two stage devebpment project. This public/private project will help revitalize downtown Salem, and create a landmark for the community. location & year of comp/etion Salem, Oregon 2004 - ~ T 1 J I:; ~! c/lent/developer _ - - ~~ rn it ECO NorihwesUCity of SalemNlP's Industries, Inc. S construction cost ~ la r $20,000,000 -Phase 1 conference center and - ~ ~ parking s- '~ ~ project size 60,000 gross s.f. -Phase 1: conference center only ~ architect -,. ~ ,.~ .r ~ ~ LMN Architects Phase 1 LMN ;RITE :a'- . ~,~ ;~: J a W ~` ` S l FERRY T Salem conference center and hotel h _r-. ^ i Sr :~ ~ 'W _. m --~ Si .: ! Phase 1 LMN ~..~ t \~~: z l a ~~ 1~~-._ V ~ y ~r . r '~~-, i -~:~; ,,~ ` _~fF I" ~ A.. _ 'r- ~ y .. . ^ ~~~,. ~ Tl Y 4c~ ~~ ~• Mai i f ..,' ~~wa J Y`ll ~Y ~~ ,r ~, ' ,_,r _.. ~ , R M t~ ~ ,'~~ ~J ~~y. i J, J"i ,.~~` •., -+,~ • ~~ ,. if/! ,, ` ((,~~' '~! ~~ y ~; ~, ,. . ..~- Santa fe civic center district action plan The City of Santa Fe hosts numerous and renowned cultural events including annual festivals, open-air markets, opera, theater and seasonal celebrations. The Action Plan focuses on establishing a careful ensemble of facilities with appropriate urban presence and improved function to ensure that the City's ability to accommodate large, diverse community focused activities is strengthened. Proposed is an enlarged multi-purpose exhibit and meeting facility along with structured parking elements that update and enhance existing building capabilities and preserve adjacent open spaces. The challenge of maintaining open spaces, while also maximizing site utilization, requires a design and program carefully crafted to balances the proposed facilities with the historic and moderate scale of adjacent structures. LMN's concept design, building on regional precedence, employs a south facing portal to create a unifying element to encourage the diverse life of the street to engage the public areas and community activities of the center. The building is organized around a series of interior courtyards offering a public experience which is truly unique to Santa Fe. Strategic massing and logical organization ensures that the facility is both functionally effective and a welcome neighbor within the historic setting. location & year of completion Santa Fe, New Mexico 2003 client City of Santa Fe architect LMN Architer„ts desir~n architect in association with HVS International Lloyd 8 Associates: prime architect LMN ::HITEC Town of Vail Q&A from July 29, 2003 - - - CONVENTION ___ "= SI'nRTS & INTERNATIONAL ENTERTALNMENT Proposed Conference Center -Town of Vail Q&A for July 29, 2003, Interview A. Clarify the roles of the various members of your team. The table below summarizes the proposed roles of team members with the bold X indicating primary responsibility of each team member. Roles of Team Members Thomas Hans Shawn LMN Paul Sa' )o~ Staff * Hazinski Detlefsen 01eary Architects Managing Senior Y~ Seni~ Senior Sub- Director President Ma r sssoaate Staff ~nsultant Project Management X Phase 1-Market Study x X x x Phase 11- Fa~ity x x X Recommendations Phase 111- Eco~orrvc & Ftscat x ~( X Impact Phase N -Business Plan X x x *Includes Chris Eseman, Mark Reddington and other subconsuftant staff. X =Primary Responsitblity x =Secondary Respor~itbtti}r • Tom Hazinski, Managing Director of HVS, will be the primary contact for the Town of Vail, manage the project, and assure the quality of all work. Tom will also have primary responsibility for developing the business plan for the project. • Paul Sajovec, Senior Vice President of HVS, will be primarily responsible for the economic impact analysis. Paul has performed numerous such studies and developed the HVS methodology for estimating economic impact. • Hans Detlefsen, Senior Manager of HVS, will direct the market analysis of the Vail conference center. Among many similar studies, Hans recently completed a market study for small convention centers in Santa Fe, New Mexico, and Alpena, Michigan. • Shawn O'Leary, Senior Associate of HVS, will assistance with market research and ' financial analysis. Shawn has an academic background in municipal finance and is currently performing similar work in Macon, Georgia, and Bangor, Maine. • LMN Architects will provide physical planning and cost estimation as a subconsultant to HVS. Staffing the LMN portion of the scope of work will include: Chris Eseman, Partner-In-Charge with LMN, will oversee the performance of the LMN team members. Mark Reddington, Partner at LMN, will provide physical planning and cost estimates. Pagel ' B. What do ou believe are the nos and cons o movin onward with a con erence center? y P .f gf f ' The primary benefits of a conference center development include: ^ Economic Impact -The potential economic impact from the additional events and ' attendees that a conference center can attract and the resultant increase in spending and employment is the primary benefit of a conference center. A conference center with the right facility program would provide access to new segments of demand that had previously been unable to come to Vail. In addition, a conference center in Vail can help to mitigate seasonal variations in group room night demand by focusing sales efforts on particular months that are not dominated by tourism ' demand. ^ Civic Benefits -Conference centers often serve as civic centers, supporting local community events and activities and thereby improving the quality of life in a ' community. In Vail, the conference center has the potential to support festival events and other tourism activities. ' Supporting and stimulating collateral development - In many communities, conference centers are one element of an overall urban development strategy that may involve a number of other land uses including hotel, retail, office and ' residential development. Conference centers generate activity and well-designed facilities may enhance the overall urban environment. ' The primary risk of developing a conference center is that it does not generate the anticipated new event demand, and instead competes directly with existing facilities in the market for events. If the new facility is unable to significantly increase the overall level of event ' demand in the market, then resources that had formerly gone toward marketing existing facilities maybe diverted into marketing a new facility that competes with the existing facilities rather than complementing them. A lack of events can cause growth in operating deficits, further diverting resources away from other uses such as marketing Vail overall as a destination. These risks make it paramount that the market potential for a new conference center is carefully analyzed and its facility program is designed to maximize its attractiveness to the appropriate segments of demand so that it can effectively fulfill its intended market niche. C. How did your previous studies compare to the actual results of the project? The reputation of our firm is based upon the thoroughness of our research and the overall quality of our analysis. Since our reports are frequently used in bond offering statements for public debt used to support facility construction, our projections of facility financial operations must be accurate and attainable. The following are examples of projects that have been financed by debt issuances that relied on projections developed by senior staff of HVS. In Milwaukee, HVS senior staff has developed demand and operating projections for the Wisconsin Center District, a public authority that owns and operates a convention center, arena, and theater. The operating projections for the District have tracked along very closely with the actual operating results and the District has hired HVS staff to perform subsequent updates on a possible convention center expansion, in large part due to Paget ' the accuracy of previous projections. In another example, the City of Overland Park, Kansas, recently opened a new convention center. HVS senior staff conducted the demand ' and operating projections for this facility. During the first year of operations, the facility's financial performance has been very close to, and has slightly exceeded the projections developed by HVS staff. ' In most cases, there will be variance between amounts in individual line items and the feasibility projections as a result of the specific characteristics of individual facilities ' management and operating structures. However, the projections of total revenues and expenses in HVS reports are routinely very comparable to the actual total financial operating results. HVS will be happy to provide members of the selection committee with ' summaries of projected and actual financial operating statements at your request. HVS also invites you to contact management of these facilities to discuss the accuracy of our projections relative to actual operations. ' In addition to financial operating projections for facilities, HVS has also performed projections of the amounts of lodging and food and beverage tax revenue that will be available to repay facility debt. HVS senior staff has conducted these projections in cities such as Raleigh, ' NC; Charleston, SC; Milwaukee, WI; Green Bay, WI; and others. The actual revenues have verified the long-term accuracy of these projections, despite yearly fluctuations in economic conditions and travel concerns. The accuracy of these revenue projections has led ' several clients to hire HVS again to conduct updates for subsequent debt refinancing and proposed expansions. ' D. What were the previous costs (fees) of other market analysis that you have worked on in the past. ' The fees we have proposed for your project are in the mid-range of costs for similar studies HVS has performed. The costs for each study reflect the differences in required scope. HVS considers this pricing information highly confidential, and we will provide a single ' copy of comparable study costs to you under a separate cover at the interview. We ask that you not duplicate or distribute this information. E. Would you reduce your cost because working for Vail has a marketing benefit for your company? HVS strives to deliver an exceptional value for the cost of services to all our clients. We do not consider marketing benefits as a factor in our fees. F. How would you define an economically successful conference center? The definition of economic success of a conference center depends on the ownership structure ' and goals of the owner. Privately owned hotel conference centers are considered economically successful if they enhance the performance of the hotel by increasing departmental profits from food & beverage and room sales. ' Public owners of conference centers typically seek to generate positive economic impact in their community, and the conference center is considered successful if it generates new ' spending by out-of--town visitors. This new spending needs to be significantly greater than Page3 the cost of building and operating a conference center. Conference centers do not usually generate enough operating income to provide a return on the capital investment required to build them. However, public owners should seek to minimize operating deficits through sound management practices. Other goals of public owners may include providing a place for civic functions or generating positive urban impacts by stimulating collateral development. Each community will view the success of its conference center in light of its public policy goals. HVS will strive to understand the policy goals of the Town of Vail and our assessments of its potential success will be consistent with those goals. ' G. What original data will you generate versus depending on existing or historical information i.e. demand for a conference center? To the extent that we deem it reliable, HVS will depend on historical information or data gathered by other sources. However, we will also generate a significant amount of new information. ' Our survey research will produce data on the activities and attitudes of meeting planners including: ^ The size and type of their events. ^ Rotational patterns. ^ Facility needs. ^ Ability to of Vail to attract attendees ^ Perceptions of Vail including the climate, entertainment opportunities, cultural ' attractions, perceived cleanliness, and perceived safety. ^ Level of interest in holding events in Vail. ' It is important to note that we do not outsource our survey work because we understand the benefit of interacting with meeting planners in the interview process. HVS will also generate new information on comparable facilities and markets through ' interviews with building managers and sales staff. The facilities planning work by LMN will generate new concept plans and cost projections for the facility. Finally, our business plan will contain creative new thinking the optimal approaches to the construction, financing and operation of the proposed conference center. ' H. Are you aware of any opportunities to take advantage of tax benefits in linking a conference center and a hotel? ' HVS Convention, Sports & Entertainment is a leader in assisting public entities in the financing of convention centers and hotels. Consequently, we have been involved in a number of hotel and conference center developments that seek to take maximum advantage of tax- ' exemptions. These exemptions may come in several forms. ^ A municipality may have the authority to abate project related taxes including property, sales, hotel, and other taxes generated by the operations of the project. Page4 ^ A municipally may have the authority to abate taxes on sales taxes on construction materials and services. ^ On some hotel and conference center projects, municipalities have chosen to "turn back" project revenues to help pay operating costs or debt service. ^ Municipalities may have the authority to subordinate tax payments in the form of payments in lieu of taxes ("PILOTS"). ^ Convention and conference center hotels maybe deemed to serve a public purpose and thereby be eligible for tax-exempt financing. Tax-exempt debt may dramatically reduce the costs of financing a hotel and or conference center project. However, public ownership of the project is usually a prerequisite for this approach to financing. A detailed discussion oftax-exempt hotel financing is provided in the attached article that appeared in the Government Finance Review and was co- authored by Tom Hazinski and Mark Laubacher of HVS. ^ State legislation may provide for state and local tax exemptions for tourism or other economic development purposes. HVS would be available to explore any such possibilities in Colorado. I. What are the effects of the project if existing hotel rooms are converted to fractional/time share uses or condominiums? Conversion of hotel rooms to fractional or timeshare use may reduce the availability of these ' rooms for a conference center room block. Condominiums may be more available for use in a rental pool. This would have a negative impact on the marketability of the conference center if it creates or increases a deficiency in room block availability. Condominium conversion may allow for the creation of a rental pool and consequently the properties would continue to provide a room block for conference center events. The impact of condominium use would depend on the owners' willingness to make them part of a rental pool and the frequency with which the rooms would be available to the rental pool. HVS has a Timeshare Consulting Division that supports owners and sellers with timeshare, fractional, and condominium hotels. The resources of this division will be available to the Town of Vail if needed to further analyze these issues. J. Is it reasonable to ask hotels to commit rooms before the project is built? It is common practice in other cities to negotiate booking policies and room block commitment agreements that provide for adequate room blocks for convention events. HVS can provide you with samples of such agreements and would be happy to offer you the benefits of our experience in negotiating such agreements. K. What will be your approach in completing the market analysis with specific respect to soliciting input from conference planners? Surveys of potential users provide vital information regarding the market potential of proposed event facilities. HVS would not outsource the survey research as some other firms do. The direct contact of our consultants with potential facility users provides more detailed and Pages ' valuable insight into meeting planner needs that third party surveys do not provide. HVS will identify an appropriate sample of event planners that reflects primary segments of ' potential demand. The survey measures event planners interest in the proposed facility and the market generally. In addition, the survey requests information on the characteristics of the events that the respondents plan. HVS will use a combination of different methods to collect accurate and comprehensive feedback from event planners: ^ Internet-Based Survey Form-An internet-based survey form HVS tailors ' specifically to this analysis will enable a large sample of event planners to express their views. The use of internet surveys can significantly increase the response rate versus telephone or fax surveys due to the ease of access. Telephone Interviews-HVS will select a subset of the survey sample to contact directly to attain additional detail on their views of the market. These interviews supplement the information collected via survey forms by enabling HVS to engage event planners in conversation regarding their impressions of the market and the proposed facility. Follow-up Fax and Phone Calls-HVS will follow-up with event planners that do not respond to the survey with phone calls and faxes. This follow-up enables HVS to increase the response rate and eliminate contacts that are no longer valid and replace them with other event planners. The survey covers a variety of data points that assists HVS to measure the demand potential for convention center events: Event Characteristics ^ Type of event, ^ Geographic scope of event (national, state, local) ^ Types of spaces required, ^ Types of services required, ^ Attendance and room nights, ^ Anticipated changes in event size, and ^ Past event locations. Interest /Impressions of the Market Based on our extensive industry experience and our analysis of the Vail market, HVS will determine which destination product issues are likely to have the greatest impact on meeting planner decisions about where to hold their events. The information obtained in these surveys will enable HVS to gauge the level of meeting planner interest in the market area and proposed conference center. HVS will survey a selection of meeting planners to draw conclusions about: Overall level of interest in utilizing the facility Relative attractiveness of peer and competing markets Market attractiveness in respect to key site selection criteria HVS analyzes the responses and presents the data in easy to understand tables and charts. The Page6 ' results of these surveys play a key role in the HVS' demand projections and overall assessment of feasibility. ' L. What conference center projects would be a good comparison to Vail? Also how will you identify failed conference centers that may be a good comparison? ' HVS will look at a set of peer or comparable conference centers that are relevant to determining the appropriate facility strategy for Vail and projecting the demand and financial operations ' of any recommended facility. This set of facilities in peer markets will include conference centers in other markets that are premiere resort/tourist destinations. These resort facilities can be located in other ski resorts in Colorado, or any resort that is a particularly attractive ' destination. Examples of potential comparable resort conference centers include: ^ Snowmass Conference Center-Snowmass Village, Colorado ' Telluride Conference Center-Mountain Village, Colorado ^ Whistler Conference Center-Whistler, British Columbia ' Monterey Conference Center-Monterey, California In addition, HVS will look at a selected set of hotel resort facilities in Colorado that will compete with a conference center in Vail for segments of the corporate state association and other state and regional group business, including facilities such as: ^ Keystone Resort-Keystone, Colorado ' Vail Cascade Resort and Spa-Vail, Colorado ^ St. Regis-Aspen, Colorado ' As an example of facilities that are not performing to expectations and maybe considered failed conference centers, HVS would analyze the performance of the Sheraton and Club Med in Crested Butte, Colorado, and the Sheraton Tamarron Resort in Durango, Colorado. Both these facilities have struggled financially, but are located in less attractive destinations than Vail. M. How will you determine operating costs and revenue potential in Vail Colorado? An accurate projection of the operating revenues and expenses for a conference center starts ' with thorough research and analysis that supports demand and attendance projections for the facility. The demand analysis informs the facility recommendation, which balances the amount of event space with the financing capacity of the market. Once the demand analysis ' and facility recommendation are both in place, HVS uses a detailed financial operating model to estimate revenues and expenses. This software quantifies the key variables and operating ratios that determine the income and expense of a conference center facility. This model separates the fixed and variable components of revenue and expenses. Variable components of expenses are estimated based on the level of anticipated conference center revenue. ' HVS will use data on comparable conference center financial operations to calibrate our financial model. Comparable facilities will provide information on the typical relationships between revenue and expense as well as key financial variables such as event rental rates Pagel and per capita food and beverage revenue. ' N. Do you have any major assumptions on the time to complete the project that we need to be aware of? HVS assumes that we will receive the information we request from the Town in a timely manner, and that the Town reviews the interim and draft reports in the time allotted. O. Do you have any conflicts of interest? Will you benefit if this project moves forward? HVS has no conflicts of interest. Furthermore, as an independent feasibility consultant, HVS would not benefit if this project moves forward. In our report we would provide the following standard certifications: "The undersigned, hereby certify: ' 1. that the statements of fact presented in this report are true and correct to the best of our knowledge and belief; ' 2. that the reported analyses, opinions, and conclusions presented in this report are limited only by the assumptions and limiting conditions set forth, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions; 3. that [consultant(s)] personally inspected the market area described in this report. ' 4. that we have no current or contemplated interests in the real estate that is the subject of this report; 5. that we have no personal interest or bias with respect to the subject matter of this report or the parties involved; 6. that this report sets forth all of the limiting conditions (imposed by the terms of this assignment) affecting the analyses, opinions, and conclusions presented herein; 7. that the fee paid for the preparation of this report is not contingent upon our conclusions, or the occurrence of a subsequent event directly related to the intended use of this report; 8. that our engagement in this assignment was not contingent upon developing or ' reporting predetermined results; and 9. that no one other than those listed above and the undersigned prepared the analyses, conclusions, and opinions concerning the real estate that are set forth in this market ' study." P. Elaborate on your approach to complete the business plan. What input will you need from this committee and or the Town? The recommendations contained in our business plan will be the product of our market research, financial analysis, and a close collaboration with representatives of the Town of Vail. The following diagram illustrates the flow of information necessary to produce a business plan. Page8 The business plan will contain the following elements: • Ownership - HVS will recommend an ownership structure that is appropriate for the method of financing. The choices for ownership may include municipal ownership, a non-profit or quasi-public entity, or private ownerships by a single purpose corporation. ' • Approach to project delivery -This may include plans for the solicitation of and agreements with developers, architects, builders and the sub-specialties necessary to ' develop and construct the project. • Marketing & Sales Plan - HVS will recommend an approach to marketing and sales that indicates the level of resources required, organizations that would be responsible for ' the sales and marketing effort, and appropriate booking and room block commitment policies. • Operating Plan -Based on the analysis of financial operations, HVS will recommend an approach to operating the conference center including various public and private operating alternatives. Various functions, such as event services, food & beverage, telecommunications, audio visual and other services will be separately considered. • Financing Plan - HVS will recommend an approach to financing the project and working with the Town's financial advisors to develop a financing cash flow statement and a proposed sources and uses of funds. • Required Governmental Approvals - HVS will outline the steps necessary for public approvals for the project including the construction and operating contracts and financing approvals. ' • Implementation Schedule -Working closely with the City, HVS will draft a project implementation schedule. To develop this plan, HVS will present alternatives to Town staffand policy makers and seek ' Page4 policy decisions and approvals on the approach to the financing plans. HVS will also seek input from the City's financing advisors, investment bankers, the convention and tourism ' bureau and appropriate legal counsel. Q. What market analysis projects have you worked on that you recommended not moving forward with the project? Oakland, California - In a draft report, HVS is currently recommending against the development of a large convention center. As an alternative, we are recommending ' improvements to the existing hotel conference center. Akron, Ohio -HVS recommended against the expansion of the John S. Knight Convention Center primarily based on the lack of adequate hotel supply to support the facility. Instead, HVS recommended operational improvements to the facility. Normal, Illinois -HVS recommended against the development of afull-service hotel i conference center. Despite our recommendations, the city tried to pursue the project, but an advisory referendum on public financing of the hotel was defeated and the project subsequently stalled. Columbus, Ohio -Based on HVS' convention center and hotel market study, the Franklin County Convention Center Authority and its advisory committee determined that it was not ' in the best interest of the facility to move forward with the development of a headquarters hotel at this time. ' Huntsville, Alabama - An HVS hotel and market feasibility study indicated that the level of public subsidy committed to support a headquarters hotel development was not sufficient to successfully attract developers. ' Murrieta, California -HVS was called on to provide a second opinion on the feasibility of an arena financing. HVS contradicted the original feasibility study because our research showed that the proposed facility would not generate sufficient revenues to support its I operations and capital costs. Prescott, Arizona -HVS recommended against the development plan for a convention center ' due to the lack of adequate supporting infrastructure, poor transportation access, and insufficient local demand. Instead, HVS recommended development of a small exhibition center. ' R. Why should we hire you? HVS is the premier hospitality-consulting firm in the world. Our Convention, Sports & ' Entertainment Facilities Consulting Division brings the highest quality of skill and experience to this project. Specifically we offer: ' • Prior experience in Vail, Colorado. • Prior experience on many similar projects and in similar resort and tourism markets. ' • Unmatched experience in municipal finance and business planning for public facilities projects. • A sound and flexible approach to the required scope of services. We have a proven Page10 i ability to deliver quality work in a timely manner. • A track record of success in helping our clients achieve their goals. LMN Architects rounds out our team by offering the highest credentials in conference facility planning. LMN is a leader in environmentally sensitive design. We are a team that has successfully collaborated with many happy clients, most recently in Santa Fe, New Mexico, and Raleigh, North Carolina. We are flexible in our approach to the scope of services and we will make the adjustments to our project that may become necessary as we undertake the project. We hope to have the opportunity to serve you. Pagell ' ~.::.. - ix:.3/d'*..:~sM~~R4..d~:t'~» ,5...-,s.R. ~A7,: -a. - y ..::..:.... ......:..... u.~ ... '. _..aa ,._.: .._ :.:.: Because of the limited availability of conventional financing for full-service convention center headquarters hotels, many governments are turning to the ' tax-exempt bond market to finance their projects. C ~I~ Tax-Exempt Notel Financing: A Primer for Finance Officers By Thomas Hazinski and Mark Laubacher Convention centers stimulate local economic activity by attracting visitors to the community. In an increasingly com- petitiveconvention market, success in attracting new visitors depends on having hotels proximate to the convention center. Recognizing hotel proximity as an important competitive factor, many cities are pursuing development of quality, full-service hotels adjacent to their convention centers. These hotels, which serve as headquarters for convention attendees, are called "headquarters hotels." Conventional financing for headquarters hotel properties pre- sents great challenges, with only a handful of institutional lenders financing hotels in the current economic environment. The financ- ing that is available imposes a 50 to 60 percent loan-to-value limit and prices loans at 3 to 4 percent over London InterBank Offering Rate. Equity investors in hotel financings require 20 to 30 percent returns in a three- to seven-year holding period. Because of the high cost of conventional financing and the high construction cost of quality, full-service properties, few proposals generate the forecast- edcash flow necessary to attract financing. Over the last five years, most of the headquarters hotel projects that have been completed or that are under construction have used some form of public-sector incentives. Absent these incentives, headquarters hotel proposals tend to languish. Public-sector incen- tives and funding support for a convention center hotel can come from a variety of sources: contributions of land, infrastructure, and parking facilities; direct subsidy payments; and contingent pledges of financial support, to name just a few. In particular, tax-exempt bond financing can significantly change the financial calculus of a project's feasibility. Tax-exempt bond financing and other forms of public support dramatically reduce interest rates and equity requirements. Over the last 18 months, several cities have used tax-exempt bonds to finance new convention headquarters hotels. Recently financed properties include headquarters hotels in Austin, Texas; Overland Park, Kansas; and Myrtle Beach, South Carolina. A pri- vately owned project currently under construction in an empower- ment zone in St. Louis also is being partially financed by tax- exempt bonds. Exhibit 1 provides a profile of some recently completed tax-exempt hotel financings. For many proposals, tax-exempt bonds can provide the majority RECENTLY COMPLETEDTAX-EXEMPTHOTEL FINANCINGS Total Development Number of MonthlYear of City Cost Guest Rooms Hotel Operator Bond Financing (in millions)* Austin, TX $280 800 Hilton June 2001 Chesapeake, MA $124 400 Hyatt December 2001 Chicago, IL $166 800 Hyatt February 1996 Houston, TX $265 1,200 Hilton April 2001 Myrtle Beach, SC $78 404 Radisson May 2001 Overland Park, KS $97 412 Sheraton December 2000 Sacramento, CA $111 500 Sheraton April 1999 St. Louis, MO $266 1,081 Marriott November 2000 `Total Development C ost includes the entire cost of making the property operational, including construction costs, financing fees, and reserves fun ded from bond proceeds . It also includes cost for parking facilities, if any, constructed under the same financing program as the hotel. GOVERNMENT FINANCE REVIEW FEBRUARY 2,OOZ 3Z :.s . ~.~ _ ,.~._,_, ,: a. _:~.._ ~ _ .,,.,,.~ .. ~,.~ . _ ~~. ~., 1 L of the overall financing needs. This article reviews the basic fea- tures and structure of tax-exempt hotel financings. These are highly negotiated transactions whose successful completion requires a significant investment of time, focused attention, and experience. The Ownership Entity To use tax-exempt financing, the hotel owner generally must be a public-sector entity. In some cases, privately owned hotel projects located in a federal empowerment zone also can use tax-exempt financing. State law typically determines the appropriate structure of the ownership entity, whether apublic-benefit corporation, a not-for-profit corporation, or an entity within a department of gov- ernment. Where a newly formed public-benefit corporation is appropriate, it is typically asingle-purpose entity created to devel- op, finance, and own the hotel. The purpose of apublic-benefit cor- poration is to isolate hotel operations from a government's other assets and revenues. Creating a new entity clearly delineates a gov- ernment's responsibilities and limits its obligations and liabilities. Important Credit Features Several factors influence an investor's decision to purchase the bonds for a hotel project. These factors include the following: • Rationale for the project • Reliability and credibility of projections • Construction risk • Evaluation of uncertain revenue streams • Hotel operator and performance incentives • Qualifications and experience of the development team Reviewing these factors will provide a better understanding of the public support needed to successfully finance headquarters hotel developments. The bond financing must be tailored to shield bond investors from various risks inherent in asingle-project financing. Rationale forthe Project A vital factor that bond investors evaluate is the rationale for public investment and support of the convention center hotel and the convention center industry. Investors evaluate this factor by applying the concept of "essential public purpose;" that is, in times of fiscal strain, public entities are most likely to reserve adequate funding for essential public purposes (e.g., law enforcement, fire protection, water and sewer plant operation) and to reduce spend- ing by cutting non-essential purposes (e.g., tourism advertising, cul- tural programming, operation of sports arenas). Because the health and safety of a citizenry are not endangered if a hotel defaults on its bonds, a hotel property is considered anon-essential purpose. Therefore, governments must present investors with evidence of a considered strategy that justifies a potentially significant public contribution in support of the local convention and tourism indus- try. This evidence might include data to demonstrate how the travel and tourism industry is an important component of the economic growth plan. Reliability and Credibility of Projections Bond investors and credit analysts carefully evaluate the hotel feasibility study. Investors use the feasibility study to assess demand for the project, and they must be convinced that the demand pro- jected in the feasibility study actually will develop in the market. Credit analysts usually run stress tests to determine how low the average daily room rates and occupancies can fall before bondhold- ers would not be paid. If the breakeven point occurs under a sce- nario that is highly unlikely to occur, then the project may be deemed investment grade. Investors ultimately must have a positive view of the economic profile of the greater metropolitan market, the expected future growth in the demand for convention space, the potential demand for the hotel, and the projected average daily room rate and occupancy levels. Construction Risk Tax-exempt bond investors are familiar with the analytical tech- niques used to evaluate construction risk. They are accustomed to analyzing construction contracts and construction performance and completion guarantees. Taxable financings often involve signif- icant equity investments. As such, construction cost overruns are paid by the equity investor rather than the debt provider. Publicly owned hotel financings, however, typically do not have equity par- ticipants with resources to pay for cost overruns, placing even greater emphasis on the mitigation of construction risk. Essential to the success of publicly owned hotel financings are the selection of a qualified general contractor, documentation of the construction contract, and adequate guarantee provisions. The gen- eral contractor should agree to a guaranteed maximum- or fixed- price contract that specifies a completion date. Failure to complete construction by this date should result in the payment of liquidated damages equal to at least the debt service on the bonds. The general contractor also should demonstrate its ability to fulfill its obliga- tions under the contract or provide for third-parry support of those obligations in the form of guarantees or bonds. The public-sector ownership entity assumes any construction risks the general con- tractor or developer does not insure. Evaluation of Uncertain Revenue Streams A typical debt offering is secured by an operating property with a known revenue stream. Bond investors are generally cautious about any "to-be-built" project with no operating history. Several factors limit the extent to which projected revenues can be leveraged in hotel bond financings. These factors include the fact that hotel rev- enues are drawn from a limited geographic area with a narrow range of economic activity, the sensitivity of revenues to economic and competitive conditions, the inherent uncertainty of revenue projections, and the limited ability to raise revenues if demand is lower than expected. Because of the uncertainty of hotel revenues, investors typically impose high coverage levels, require strong legal protections, and discount the future growth of revenues. Hotel OperatorandPetformance Incentives Conventional hotels usually hire private hotel operators who are paid based on the hotel's gross revenue or profit. In atax-exempt financing, however, the hotel operator's compensation cannot be contingent on gross revenue or profit because of the limitations imposed by tax regulations, specifically those regarding qualified management agreements. Still, the hotel operator should covenant to satisfy first-class hotel performance standards and to maintain the hotel in good condition. An operating or franchise agreement with a respected hotel flag is likely to attract more investors. The relative absence of strong performance incentives in publicly owned hotel financings is a concern for investors. A property man- ager without a profit motive raises significant concern among investors about the financial performance of the property. To com- pensate, investors look for features that create performance incen- tives within the bounds of applicable tax regulations. Incentive fea- tures such as subordinated management fees and operator investments in deeply subordinated bonds help ease investor con- cerns. Incentives are typically paid only after the hotel operator has met operating expenses and debt service obligations and has funded reserve requirements. To create further performance incentives, publicly owned hotel financings often include termination standards based on performance tests. The performance tests require the operator to achieve predeter- mined levels of gross revenue or to generate occupancy and room rates comparable to or better than a competitive set of properties. GOVERNMENT FINANCE REVIEW FEBRUARY 2002 33 Qualifications and Experience of the Development Team Investors must have confidence in the development team, the composition of which is an important credit consideration. Because the non-recourse financing will be payable solely from hotel revenues, investors must be satisfied that the team has the ability to manage the complex development of the hotel and complete construction in compliance with adate-certain and guaranteed-price construction contract. The operator's ability to market and maximize hotel revenues on a long-term basis is also an important investor consideration. Consequently, major national hotel operators and their hotel brand names are most acceptable in the marketplace. Bond FinancingAlternatives The preceding review of factors that bond investors evaluate in analyzing hotel bonds identifies several risk categories that need to be addressed to complete the financing. Even projects with strong rationale and underlying economic forecasts must mitigate construction and operational risks before investors will commit capital at a reasonable interest rate. Local governments can use a variety of alternative structures to mitigate these risks. The essential difference among the financing alternatives is the allocation of risk and reward of the hotel operation. The risk of the hotel's operating success should be allocated among the government, the hotel operator, and the bond investors. The allocation of risks should be proportionate to each party's incentives and rewards. In the current economic envi- ronment, investors are unwilling to purchase hotel project bonds unless the public sponsor assumes a reasonable share of the risk. By shielding investors from risk, the public sponsor can lower its bor- rowing cost, which enhances cash flow and the prospects for long- termsuccess. Debt Service Structure and Reserve Funds The debt service structure should balance the requirement for sufficient debt service coverage with the expectation that the hotel's net revenues will grow as occupancy rates and average daily room rates rise over time. Because the revenue stream supporting the debt will increase as the hotel achieves its stabilized level of opera- tions, investors have approved hotel credits with ascending debt service payments that follow reasonable estimates of net revenue growth. Investors require generously funded debt service reserve funds. A debt reserve funded from bond proceeds is intended to mitigate the risks of under performance during the critical initial years of opera- tion-from opening to stabilized operation. Reserve funds also address investor concerns over the volatility of lodging demand during periods of economic downturn. Typically, the initial reserve fund is equal to 10 percent of the initial bond issue and is funded from the proceeds of the bond issue. Following the commencement of operations, additional reserve fund deposits are made from the hotel's cash flows. Three-Tiered Debt Structures Recently completed public hotel financings generally have included athree-tiered debt structure comprised of first-lien senior debt, second-lien subordinate debt, and a smaller third lien pur- chased by the hotel operator and/or developer. Exhibit 2 illustrates the flow of funds for a typical tax-exempt hotel financing. The sec- tions below describe the chief characteristics of these three different lien categories and how public-sector support can be used in each category to mitigate and allocate project risks. First-Lien Non-Recourse Bonds. The first-lien senior bonds, which have first claim on the hotel's net operating income, general- ly are sized to a 1.60 to 2.25 times debt coverage ratio. Net operat- ing income is defined as gross revenue less departmental expenses, TYPICAL FLOW OF FUNDS Cash Trap (Owner's Residual Benefit) variable operating expenses, and fixed expenses. The debt coverage ratio is calculated by dividing annual net operating income by annual debt service. Typically, the first-lien bonds are payable only from hotel opera- tions and have no guarantees or back-up support of public-sector resources. As such, first-lien bonds are "non-recourse bonds," because no financial resources other than the hotel operating rev- enues are pledged to pay debt service. The first-lien bondholders have a first mortgage on the hotel property. The financing team often will structure the first-lien debt cover- age ratio high enough so that the first-lien bonds can attract an investment grade rating of at least "Baa" from Moody's Investors Service or "BBB" from Standard & Poor's. Whether the appropri- ate debt coverage ratio to secure an investment grade rating for a first-lien non-recourse bond is 1.60 times debt service, 2.25 times, or somewhere in between depends on the credit features of the issue. The determinative features include the strength and history of the local hotel market, the number of hotel room nights the con- vention center currently generates, and the relative proximity of the proposed hotel to the convention center compared to the existing competition. Second-Lien Subordinate Bonds. The second-lien subordinate bonds have a secondary claim on the hotel's net operating revenue; that is, hotel revenues are applied to pay the second-lien bonds only after the entire amount due on the first-lien bonds is fully paid. Because of the inherent uncertainty of any future financial projec- tions, the second lien on hotel revenues alone does not provide suf- ficient certainty to attract investor capital at reasonable borrowing costs. To make the second lien marketable at an affordable interest rate requires reasonably assured public-sector support. The public- sector support is a pledge to fill any shortfalls in the event that hotel operations, after paying first-lien debt service, generate less than what is needed to pay second-lien debt service. The public-credit support often is in the form of a contingent pledge of public resources in the event that the hotel's net income is not sufficient to pay second-lien debt service. The distinction between sources of payment and sources of credit support is important. The expectation is that if the hotel performs reasonably close to projections, it will generate sufficient net income on its own to pay for the second-lien debt service. The pub- lic-sector support provides a credit backstop with a stronger cer- 34 FEBRUARY 2OO2 CrOVERNMEN'I' FINANCE REVIEW ., 1 tainty than the hotel's net income projections. Only in the event that hotel performance was well below expectations would the public- creditsupport become a source of payment. Local governments have utilized several different alternative forms of public support on second-lien bonds to stimulate the development of their convention headquarters hotels. A general obligation pledge is the lowest-cost alternative and the simplest to explain to investors. However, it has the greatest legal constraints (debt limits) and creates the greatest political challenges. Trenton, New Jersey, and Wayne County, Michigan, are two municipalities that recently chose a form of general obligation debt to support bonds for their hotel properties. A more common (and more politically feasible) form of public support for convention center hotel projects is a pledge of dedicated taxes. Taxes commonly dedicated to provide credit support for these types of developments include sales taxes, hotel taxes, restau- rant taxes, and auto rental taxes, as well as pledges of certain state formula distributions. In the City of Overland Park, Kansas, where direct cash subsidies to the project were not politically feasible, the city pledged local room taxes to the repayment bonds in the event that hotel revenues were insufficient. This pledge remains in effect until the hotel achieves a level of stabilized performance. Sometimes pledged taxes lack a track record and/or are judged to provide weak credit support, thus requiring higher coverage levels and limiting the amount of debt that they can support. In such cases, creative structuring alternatives can help maximize the debt capacity leveraged by weak revenue streams. Three techniques for improving "bankability" include general fund leases, annual appropriation pledges, and moral obligation pledges by creditwor- thygovernment sponsors. Third-Lien Subordinate Bonds. Financings for several headquar- ters hotel developments have included athird-lien debt-junior-lien bonds sold to the private-sector project participants. Given that third-tier bonds are being sold to project participants, debt service coverage requirements can be more arbitrary. First-lien and second- lien bondholders often view the third-lien bonds as an "equity" investment in the project. It is a definite credit positive for a project to have private-sector participants with a tangible stake at risk in the project's Long-term success. For subordinate bonds to qualify as tax-exempt debt (as opposed to an equity investment), federal tax regulations require a reason- able expectation that the subordinate debt can be paid from the hotel's cash flows. To defend the position that the contribution is a debt investment and not an equity investment, bond counsel typi- cally require that the coverage ratio on deeply subordinated bonds be at least 1.10. Conclusion Public development of convention center headquarters hotels has the potential to generate significant increases in convention activity, thereby stimulating the local economy. Increasingly, local govern- ments are enhancing convention center headquarters hotel develop- ment with public incentives, including public ownership of hotels financed with tax-exempt bonds. Financing hotels with tax-exempt debt offers significant advantages over the alternative of providing direct subsidies to privately developed hotels. A lower cost of funds dramatically increases project feasibility. If the hotel performs as expected, the municipality will reap the financial benefits of resid- ual cash flows and eventually receive proceeds from the sale of the hotel. Awell-informed understanding of the means of allocating risk in atax-exempt bond financing can help municipal owners attract investors at reasonable costs and with a prudent amount of public commitment to the project. illl THOMAS HAZINSKI is the managing director o f HVS Convention, Sports ~ Entertainment Facilities Consulting in Chicago, Illinois. He specializes in providing economic and financial research to public agencies involved in economic development initiatives. Before starting his consulting career, Hazinski served in several positions for the City o f Chicago, including assis- tantbudget director. Hazinski holds a master's degree in public policy from the University o f Chicago's Harris School o f Public Policy. MARK LAUBAC[-tER is the senior consultant with HVS Convention:, Sports ~ Entertainment Facilities Consulting in Chicago, Illinois. Laubacher has 16 years of experience as a public finance investment banker, and he has been a lead banker on numerous municipally financed projects. Laubacher was previously a director at Bear Stearns investment banking department. Laubacher holds a masters degree in business administration from Northwestern University. GOVERNMENT FINANCE REVIEW FEBRUARY 2002 3S Chicago's Hyatt Regency McCormick Place. Economic ~ Planning Systems PROPOSAL VAIL CONFERENCE CENTER MARKET ANALYSIS AND BUSINESS PLAN Prepared for: Town of Vail Prepared by: Economic & Planning Systems, Inc. July 2003 EPS #13846 D E N V E R B E R K E L E Y S A C R A M E N T O 730 Seventeenth Street, Suite b50 F - nhwz i p n - llenver, CO 507.02-3~ I t ~. _ _ ...... 1 _ ', www.epsys.com Economic ~ Planning Systems Public Finance Real Estate Economics i l Eronom cs Regiona July 2, 2003 ;,and Use i'nlic}~ • ~ Mr. Russell Forrest ~ Director of Community Development Town of Vail • 75 South Frontage Road Vail, Colorado 81657 ~ Subject: Vail Conference Center Market Analysis and Business Plan; EPS #13846 ~ Dear Russ: ~ Economic & Planning Systems (EPS) is pleased to submit this proposal to conduct a • market analysis and busiiess p1a~r for the proposed Vail Cor+fPYP1ce Center, EPS has assembled an excellent team to address the market support and facility programming ~ and financing services requested by the Town. • EPS is a full service economic consulting firm with 50 professional staff in our Denver, Berkeley, and Sacramento offices. Founded in 1983, the firm has abroad-based practice ~ in the economics of real estate, planning, and public finance. Each of the firm's ~ :principals has over 25 years experience in the field working with a wide range of public . and private sector clients. The firm has established a reputation for creativity, objectivity, and rigor in resolving complex public and private real estate issues, ~ including the development of public assembly facilities. ~ EPS has a depth of experience with real estate market and financial feasibility analysis • including conference, event center, and performing arts center projects. The firm's market analysis efforts range from evaluations of existing market information to ~ detailed project-specific market forecasts that utilize consumer surveys and other ~ primary research. Pro .forma cash flow models test feasibility under a range of project • alternatives, financing, and partnership options, disposition strategies, and measures of financial return. ~ Dan Guimond, principal and manager of the Denver office, will be the project director. • He has conducted market and financial feasibility studies for 10 separate conference or public assembly projects. Walter Kieser, managing principal would be the principal-in- ~ charge. Walter's experience with public/private financing agreements, inter- governmental agreements, and capital financing is directed at ensuring real estate projects meet private-sector financial objectives while supporting public policy objectives. ~ The EPS-Team includes the following subconsultants to address specific tasks required ~ to help the Town address the implementation steps needed to move this project forward. DEN V E R BERKELEY S A C R A M E N T O 730 Seventeenth Street, Suite 630 phone: 303-623 »57 2~ona 0 44]-°i90 ~~onc~. 9?6-649-8010 Denver,C080202-3511 *ax 3G3-523-9D49 fax: _ 0 S~~1-9203 Fas: otC 6~d^, ?070 www.epsys.com Mr. Russell Forrest July 2, 2003 Page 2 Alder Creek Corporation -John Burchmore of Alder Creek was the former executive director of the Telluride Conference Center. He was also sales and marketing director of the Snowmass Conference Center and the Sugar Loaf Conference Center in Michigan. John provides conference center operating experience to address facility programming requirements, operating plans and budgets, and marketing and management issues. ~ Melick Associates -Chip Melick of Melick Associates was the designer of the Keystone • Exhibit Hall expansion and the Keystone Conference Center as well as numerous other conference centers and lodge and hospitality projects. He will provide building programmng and conceptual design services. ~ RRC Associates -Chris Cares of RRC has been involved with numerous projects in Vail • surveying and probing the visitor market. He will provide survey research services related to meeting planners and also create focus groups of meeting planners to address ~ potential markets and facility requirements. Shaw Construction -Clark AtkulSOn of ShaVv CviiStTLlCtiGii 'vJIIl prvvid2 %vst 2Si •iiat'iiig services. Clark is very familiar with Vail construction cost data. having worked on multiple large-scale commercial construction projects in the Vail Valley and elsewhere throughout mountain resort communities. Our proposal is structured in the following sections: ^ Project Understanding and Approach ^ Responses to RFP questions ^ Work Plan ^ Budget and Schedule ^ Relevant Experience ^ Qualifications of Key Staff ^ References We look forward to meeting with the Conference Center Advisory Committee for this important project. Sincerely, ECONOMIC & PLANNING SYSTEMS, INC. Daniel R. Guimond Principal zae46in-~-z Economic Planning Systems r"z+. v.ic Pinang ?ngicnni Ecenat~tirc PROPOSAL PROPOSAL PROJECT UNDERSTANDING In November of 2002, Vail voters approved a dedicated lodging and sales tax to fund the construction of a conference center. The need for additional public assembly facilities in Vail has been under consideration for some time, with at least five separate concepts varying by type of facility, location and funding source. This latest project has achieved a higher level of certainty, having achieved voter approval and securing a dedicated funding source. The proposed conference center facility has a preliminary development concept (based on the CS&L market study for the Holy Cross site) and previous market research (conducted by ERA on the community facility project including a conference center) proposed for the Charter Bus property in 2000. The preliminary building program recommended to serve the potential market includes a 35,000 to 40,000 square foot ballroom and associated breakout rooms, kitchen, and pre-ft.:rc±ior, spaces that ~n.~ill as much as double the size of the facility. This facility could seat up to 3,500 theater style and 2,900 banquet style. For multi-day conventions needing multiple ballrooms, the facility could comfortably host groups of approximately half that size, in the 1,500 attendee range. ~ The Vail Conference Center, as proposed, would be the largest facility in the Colorado ~ mountain area. The largest competitive facility is the Keystone Conference Center with a total of 60,000 square feet of meeting space including a new 20,000 square foot ballroom. The next largest facility is the Snowmass Conference Center with an 11,300 ~ square foot ballroom and a total of 34,000 square feet of meeting space. Vail already has a healthy share of the Colorado resort meeting business including corporate, professional, and state association business. These meetings are held in existing hotels, the most prominent being the Marriott with 20,000 square feet of meeting space and the Cascade with 26,000 square feet of space. These hotel meeting and banquet facilities are sized to support the associated hotel rooms of 345 and 289 rooms respectively. The proposed conference facility is designed not to compete with the existing hotels, but to provide space to accommodate meetings too large for individual hotel properties, in this case groups of about 300 or larger. Vail is in an enviable position for expanding group business and attracting larger meetings. It is located in the I-70 corridor within two hours of DIA. It is therefore more accessible for out of state visitors than most of its competition (with the exception of Keystone). It is however, a more attractive destination than Keystone due to its greater shopping and dining amenities and a larger lodging base with nearly 2,500 hotel rooms and nearly 7,000 hotel and condominium bedrooms. ~ The requested market study and business plan are the first step in the development of ~ the Vail Conference Center. The market study will first independently evaluate the • results and conclusions of the previous two market analyses as they apply to the new facility location. The Town has a series of specific questions that relate to the size and ~ characteristics of the conference market, Vail's competitive position, the role of the conference center in the community, and economic and fiscal benefits to the local economy. After confirming the market and facility requirements to serve the market, the business ~ plan will detail the building program, capital and operating budgets, and financing and • implementation plans. A key issue is planning and sizing the facility to respond to market potentials, but within the financial capabilities of the Town -particularly with respect to ongoing operating costs - so as to not become a financial burden on the community. ~ APPROACH • ~ This is a challenging consulting assignment. A segment of the community is frustrated • by how long it is taking to get a conference center built ire v ail. Soiite in il~e con~rrruni y are still skeptical as to the feasibility of the project. This however is typical of major . public facility investments. There have been few convention or conference centers that ~ were built at the time of their initial proposal. These investments generate a healthy • public debate about the viability and importance of the project vis-a-vis other . discretionary public investments done for economic development purposes. The challenge is to provide objective market and financial information and analysis that helps the Town Council make informed policy decisions regarding implementation of ~ the conference center project. ~ This project also falls into the nexus of public-private development. The conference ~ center is a public facility built to assist the hotel and lodging industry s effort to attract ~ and host a greater number of conferences, meeting, banquets, exhibits, and trade shows. • The economic returns to the Town are measured in increased visitation, retail sales, and lodging activity. The project's economic and fiscal benefits therefore need to address the ~ impacts on the larger Vail economy. • EPS prepares market, financial feasibility, and economic and fiscal impact analyses for a ~ wide range of public facility projects, including conference, performing arts, and event ~ centers. Our services include a realistic assessment of market trends to determine the ~ potential market for a given project, development of financial models and operating pro • formas to determine project feasibility, and analysis of the relevant fiscal and economic • impacts. EPS also has a strong track record of assisting Colorado mountain communities with these and other economic and fiscal development issues over the last 10 years ~ including projects for Aspen, Snowmass, Durango, and Telluride, as well as Vail, • EPS has retained the following subconsultants to help implement this important project.: ~ 2 ^ Alder Creek Corporation -John Burchmore of Alder Creek Corp. has sales, operations, and management experience with the Telluride and Snowmass Conference Centers in Colorado, as well as the Sugar Loaf and DSI Resort properties in Michigan. John's direct operating experience provides additional depth to address the competitive resort community conference market and on specific facility operating requirements and cost and revenue data. ^ Melick Associates -Chip Melick of Melick Associates will provide building programming and conceptual design services. Chip was the designer of the Keystone Exhibit Hall expansion and the Keystone Conference Center as well as numerous other conference centers and lodge and hospitality projects. ^ RRC Associates -Chris Cares of RRC will provide survey research services related to meeting planners and also create focus groups of meeting planners to address potential markets and facility requirements. Chris has conducted similar research for Vail and Copper Mountain and has been involved with numerous projects in Vail surveying and probing the visitor market. ^ Shaw Construction - EI3S has retained Shaw Construction of Grand Junction to provide construction cost estimates for the project. Clark Atkinson is very familiar with Vail construction cost data having worked on multiple large-scale commercial construction projects in the Vail Valley and elsewhere throughout mountain resort communities, The organization chart provided in Figure 1 on the following page shows the relationships-between each of the team members, the Town, and the Conference Center Advisory Committee (CCAC). 3 Figure 1 Organization Chart Vail Conference Center Market Analysis and Business Plan 4 ~ The collaboration of these firms provides the skills and database to address the specific ~ questions raised by the Town. Our industry-specific knowledge of conference facilities • and the Colorado meeting and event market will also be an important source of experience for the determination of potential users, market share penetration, facility ~ requirements, design recommendations, and operating financial information, Our general approach and comments on the questions listed in the RFP are outlined below. Following the discussion the specific issues, the work plan is presented in detail, including the methodology proposed to assess market demand, develop an operating plan, and evaluate financial feasibility. MARKET ANALYSIS 1. Independently review the occupancy rate, per week, month, and season, of lodging units in the Town of Vail to ensure room availability. The availability of lodging units is the primary determinant of maximum meeting size (other than the capacity of the facility itself). Using existing occupancy data, EPS will estimate hot bed lcdging units available or, a monthly basis. We v,~ill also interview the operators of the major hotels generating conference business to determine hotel room availability for group business by month. 2. Evaluate the economic performance of other similar mountain resort conference facilities and their operating structure. We will obtain the event calendars and operating budgets for the major competitive facilities including Snowmass, Telluride, and Keystone. We will also conduct confidential personal interviews with staff from each facility. This data will provide major inputs to the quantification of the existing competitive market as well as inputs to the operating plan. 3. Survey conference planners to determine market demand and programmatic requirements. The conference market is made up of distinct segments including corporate, national and state associations, government and non-profit groups, as well as Social, Military, Education, Religious and Fraternal groups collectively referred to as the SMERF market. Each market segment is represented by a different group of meeting planners and associations. We will review the previous studies to determine if these meeting planners representing these groups have been adequately surveyed. If not, these groups of association planners will be surveyed regarding their groups current meeting locations and rotations, facility requirements, and evaluation of Vail as a potential destination. We will also use focus groups with meeting planners to address the specific programmatic and building design requirements. 4. Determine seasonal demand for the facility and programmatic requirements. Also determine whether Vail has an adequate bed base and transportation access. As discussed above, the available bed base places an effective limit on the size of groups that can be accommodated. Transportation accessibility also 5 ~ will have an impact on the type and size of groups that can be attracted to Vail. ~ The bed base issue is addressed in #1 above. The impact of transportation accessibility and what limits it places on groups coming to Vail will be addressed in the survey of meeting planners. An evaluation of the existing transportation ~ services (public and private) will be completed to compare the needs to the ~ existing services. ~ 5. An analysis of economic and fiscal impacts. EPS utilizes a convention and ~ conference economic impact model. The major input is the number of events by ~ type. For each event the number of attendees, total number of visitors, room ~ nights, room revenues, retail sales, and food and beverage sales are calculated. 'This information also allows for quantification of increased retail and lodging tax ~ revenue derived from the increase in conference business. • 6. Recommendations on restrictions of conference size and impacts on existing hotels. Constructing a facility of a eapacity to accommodate larger programs ~ than currently exist in resort facilities gives Vail an edge into new market ~ territory rather than competing with its hotel partners and other resort locations. ~ As a stand alone conference faciiity, it wiii not attract very many meetings small • enough to be accommodated in an existing hotel. Restricting meeting size is not likely to be required if the conference facility rental rates are competitive with the ~ hotels. • ~ 7. Vail's advantages and disadvantages in competing for larger conferences. This is a fundamental question to be addressed by the market analysis. The proposed ~ facility would allow Vail to accommodate groups that are now limited to Front ~ Range locations. Vail clearly has Iocational advantages over other mountain • resort destinations to attract larger meetings. The number of meetings by type and. size range will be forecast based on a competitive analysis and interviews ~ with meeting planners. The number of larger groups that can be attracted to Vail ~ will be a key determinant on any recommended changes to the size of the • proposed facility. ~ 8. Identification of centers that have ceased operation. Few if any public ~ conference centers have closed. There are, however, facilities that are • underperforming with large operating deficits. Researching these facilities will provide more data and lessons learned upon which to plan the Vail facility. • ~ 9. Growth of larger conferences and growth of conference facilities. The number ~ of meetings is growing slower than the growth in conference facility capacity, both nationally and in the state of Colorado. This data will be provided. ' s competitive position and the ability of However, the more relevant issue is Vail ~ anew facility to penetrate the market and capture market share regardless of ~ whether it is new growth or attracting existing meetings from other locations. . Our market analysis will forecast the number, type, and size meetings that the new facility is expected to capture. ~ 6 ! 10. The most effective ways of increasing room nights (while maintaining rates) ~ without a conference center. The ability to expand the visitation market in Vail • through alternative means will be forecast. The comparison of growth based on the investment in the conference center to alternative growth strategies is a ~ legitimate way to analyze the cost and benefits of the public investment. ~ BUSINESS PLAN • 1. Proposed physical program that includes verification that the spatial requirements fit on the site. The proposed site is small and will likely require some stacking of uses should the recommended facility program remain at its ~ current size. The building program will be conceptually designed and illustrated ~ to assess these issues and evaluate the quality and adequacy of the elements . within the facility. ~ 2. Refine the capital budget including the cost of adding an additional plate on ~ the Lionshead Parking structure. The EPS team will rely on Shaw Construction • for cost estimatir. nrniar~~ ~'~PTI?entS and develn„inv a mitre detailed con~tr,~rtion g r_.,~~....._~ r b .budget for the refined building program. ~ 3. Operating personnel requirements, including security. The staffing i requirements are most demanding in food and beverage, audiovisual, house duties, and maintenance of the facility. Coordination of a review and assessment ~ of projected occupancy will determine whether contracting for services in each ~ category will be more fiscally responsible to the welfare and service of the • facility. We will assist incoordination of those evaluations as well as the RFP process to follow. ~ 4. 20-Year operating budget for the facility. The operating budget will include . revenues from facility rentals and food and beverage sales based on the findings of the market research. Operating costs will include personnel, fringe benefits, ~ utilities, overhead items, maintenance, capital replacement costs, and security. ~ The operating budget will be phased in to the full operation (typically year three • through five depending on booking forecasts) and adjusted by year through the 20-year period. The operating budget will calculate operating deficits (if any) ~ and the financing subsidy needed to cover these deficits. • 5. Capital budget. The capital budget will detail the cost of facility construction by major element as well as design, engineering, site preparation, and developer • fees and profit. FF&E will also be a major consideration in the proposal. The ~ cost analysis will address major elements separately, such as the parking ~ structure expansion. ~ 6. Proposed strategy for addressing operating deficits. The sales and lodging tax ~ revenues will be forecast and the amount needed for construction financing ~ determined on a preliminary basis. The ability of current funding to finance the 7 ~ estimated operating deficit will be determined. If there is insufficient funding ~ available for operations, alternative building programs will be considered as well • as alternative sources of operating funds. ~ 7. Hotel booking policies and agreements. We will develop a plan for the sales ~ functions of multi-property room blocks, presentation of rates and availability to . prospective customers. We will work with the lodging community and Convention and Visitor Bureau to structure the booking policies and procedures ~ for the sales effort. . 8. Proposed marketing plan and costs. We will make a recommendation for the marketing plan after evaluating the existing marketing programs in the community. A plan maybe most efficient if directed through the partnership ~ with an existing marketing organization, sueh as the WCTB. We will determine • the size and scope of the sales needs and how to include the additional support i for this facility. ~ 9. Analysis of incremental costs to the Town to support the conference center. • 1 1 T r 7 r t• 1 ~ Togetner witn ~ own scarf, the incremental cost or proviarng any aaartlona town services will be estimated as part of the fiscal and economic impact analysis. • Demand from Iocal organizations, non profits and community needs may be ~ considered a cost of operations. We will evaluate and determine the local ~ demand for the facility. ~ 10. Financial impacts of project failure and alternative uses for the building. This ~ is a large building without an immediate reuse option. There would be major ~ costs in converting it to, for example, a school, gym, or recreation center. It is • therefore important that the facility be properly planned and sized for the potential market. ~ 11. Bond payment schedule and revenue sources. The bonds are expected to be • backed by dedicated sales and Iodging taxes. EPS will calculate bond issuance requirements and payment schedule based on current interest rates and terms. f s • 8 • • r f • i i WORK PLAN The proposed tasks below outline the specific steps we would take to conduct the requested market analysis and business plan. PHASE I: MARKET ANALYSIS Our approach to the market analysis places emphasis on determining the additional number, size and type of conferences that could be attracted to Vail with the inclusion of a large conference center. We will direct our analysis to supplement, refine, and confirm or reject utilization forecasts and facility program recommendations in the previous market studies. Task 1: Existing Vail Conference Market In this task we will quantify the existing conference and meeting business in Vail as well as the facilities to accommodate these meetings. Existing conference event calendars will be compiled from lodging association and hotel data for the last three years. The existing hotel conference facilities will be tabulated with data on the size of groups. The total number of lodging units available will be tabulated by property with a calculation of available beds for group meetings on a monthly basis based on occupancy data and interviews with property managers. Task 2: Existing Vail Group Business The potential to accommodate business from existing Vail-based events will be evaluated. The demand for use by large special events including concerts and sporting events (World Cup, Mountain Bike Racing, Ski Racing) can generate a demand for larger conference and exhibit space in the future. Many of these events may be using less than optimum space for exhibits and banquets currently. The groups sponsoring these events will be interviewed to determine the need for and preference to use conference center facilities. Task 3: Survey of Colorado Organizations In this task, we will obtain and review the lists of major meeting and event planner organizations active in the state including: ^ Colorado Society of Association Executives ^ Society of Government Meeting Professionals ^ Meeting Planners International ^ Professional Convention Management Association ^ Colorado Association of Non-profit Organizations We will sort the lists based on organization size and meeting facilities requirements and narrow to include only those organizations that fit the profile of larger meetings than are currently being accommodated in Vail. We will then design amail-out survey for prospective groups covering the following: 9 '~ Number and types of meetings/events held annually. + Size, length and other characteristics. • Location of previous meetings and rotation patterns/requirements, ^ Facility needs and venue locational requirements. ~ Attractiveness of Vail as a future destination. ~ Profile of conference attendees. ~ A total of about 500 surveys will be distributed by mail asking for response by mail or fax. We will follow-up with non-respondents by phone asking for response. Based on ~ previous surveys, we would expect a 20 percent response rate. The survey responses ~ will be tabulated and analyzed to determine the type of organizations and types of . events for which the Vail center would be competitive. In addition to the survey findings, a series of focus groups will be held with meeting planners. The findings from ~ these sessions will be summarized and compared to work the team has done in the past ~ with Vail and other mountain resort meeting planner focus groups. Task 4: Competitive Facilities Evaluation ~ The EPS Team will identify the most competitive facilities for the Vail facility from the ~ survey results. In addition to Snowmass, Telluride, and Keystone, the target market size ~ is likely to include some Front Range destinations such as the Broadmoor and even the • major Denver area conference hotels. We will contact the managers of the public facilities and obtain their event calendars and budgets, and discuss issues related to ~ market penetration and share as well as facility size and design. We will interview the ~ managers of private facilities to obtain as much data as possible on the number and type • of groups held in each facility. ~ Task 5: State and National Conference Profile ~ To compete in the size class desired, the Vail facility will not only need to obtain a share ~ of the Colorado market, but also the national market for certain resort oriented meetings • (e.g. legal and medical certification training). This task will profile the growth in conferences and meetings by size and type both in Colorado and nationally. The growth ~ in conference facilities will also be identified in the state and in resort settings nationally. ~ Any comparable failed facilities will be identified and investigated with respect to the • reasons and conditions surrounding its demise. Facilities that are significantly under performing their potential will also be evaluated to identify key issues that factor into a • center's success or failure. Task 6: Facility Utilization Forecasts Based on the above analysis, we will identify Vail's market position and locational advantages and disadvantages for competing for larger conferences. The number of conferences, meetings and other events that could be supported at the proposed conference center will be forecast. For each type of event, specify the number of events by size range and total attendance by year for years one through full operation. Based on the characteristics of events, we will then estimate the days of use, number of banquets and associated hotel room nights by type of event. The seasonality of the 10 facility will also be addressed including the number of events by season and any size constraints by season based on hotel room availability. Task 7: Preliminary Building Program Based on the projected utilization, we will specify the optimal facility design. There is a tradeoff between facility size and level of utilization. The facility needs to be sized, not for one large event, but rather to allow the Town to compete for a reasonable share of business at a specified level. The recommended facility program will include the following: ^ Overall size and capacity requirements for meeting, banquet, breakout room and exhibition space requirements. ^ Furniture, fixture and equipment requirements. ^ Architectural constraints including ceiling heights, load and sound specifications. ^ Parking. ^ Operational considerations and restrictions, including relationship of kitchen space to functional rooms and other service requirements. ~ Task 8: Economic and Fiscal Impacts r This task will quantify the direct and indirect economic impacts of the proposed facility ~ on the Town of Vail. EPS will use its economic model to translate the projected event . calendar into attendance, total visitation, room nights, room revenues, retail sales, and restaurant sales. The associated fiscal benefits will also be quantified including ~ associated sales and lodging tax revenues, net the portion set aside for the conference ~ center. ~ Task 9: Draft Reports ~ As requested, the EPS Team will prepare a draft report and present the information to ~ the CCAC. After review, the report will be revised prior to a presentation to the Town ~ Council. The final report will not be prepared until after the development of the business plan. ! PHASE II: BUSINESS PLAN ~ The business plan is in essence a step by step implementation plan for the proposed ~ facility. The EPS Team expects to work closely with the CCAC in addressing the ~ construction budget, project financing, and operational plan for the facility. S Task 10: Building Conceptual Plan ~ This task involves developing the building program and translating it into a conceptual ~ plan that is responsive to the site. The result of the building conceptual plan will reflect • a balance between site, program, image, quality, budget and schedule. The construction pricing effort will occur throughout the design effort to provide the owner with a • realistic understanding of feasibility at completion of the conceptual design phase. 11 ~ The programming phase will involve developing the list of programmatic requirements ~ for the conference facility that will provide space requirements for support and • operations. "State-of-the-art" components, trends, flexibility, types of groups and their needs, energy and environmental impacts, efficiency and access will also be discussed ~ and addressed in the program. The program will define space adjacencies and ~ circulation, as well as influences from the site and adjaeent properties. The program will • be depicted u1 graphic form through the use of bubble diagrams and blocking and stacking diagrams to describe the response to the site. These tools will allow the client ' to graphically understand and respond to the written form of the program. • Task 11: Construction Budget • The proposed construction budget will be prepared in sufficient detail for purposes of establishing a financial plan for the projeet. This will include major construction line • items such as exterior shell, interior finish, and FF&E, as well as site preparation, design, ~ engineering and financing costs. The cost of adding to the Lionshead parking structure ~ will be separately specified. ~ Task 12: Capital Financing ~ This task will quantify the revenue bond requirements to build and finanee the proposed ~ facility in the current financing market. The cost of issuance will be estimated including ~ any capitalized interest required. The annual bond payments will be calculated to • determine annual revenue requirements. The annual payment requirements will be compared to revenue forecasts to determine any available funds for operations. • Task 13: Preliminary Operating Plan ~ This task will involve the determination of the recommended staffing plan including . salaries and other costs. The team will provide alternative operating structure, with analysis of in-house operations compared to contract services. Other operational ~ requirements for the facility including rents and charges for space and services, food and ~ beverage service provisions will also be specified. The requirements for hotel booking • - agreements will also be detailed. ~ Task 14: Operating Pro Forma ~ This task will involve estimates of all operating costs and revenues on an annual basis ~ fora 20-year period. Operating revenues will include all revenues from rents and • charges for space and equipment as well as food and beverage sales. Operating costs will include personnel, benefits, other operating expenses, utilities, maintenance, and ~ capital replacement. Costs will be estimated for astart-up period and up to full ~ operations based on the utilization forecasts. Costs and revenues will be estimated for • future years using agreed upon cost inflation rates. Any operating deficits will be • quantified. Strategies for addressing operating deficits will be identified including dedicating surplus sales and lodging tax revenues to the operating deficit. 12 Task 15: Project Refinements ~ This task will address any project refinements required as a result of the business plan ~ including facility adjustments to meet revenue or financing requirements. It will also ~ include addressing any competitive issues and restrictions on facility use and booking that are identified through the course of the plan. Task 16: Final Report and Presentation ~ The EPS team will prepare a draft report for the CCAC and make a presentation of the results. After review a second draft will be prepared and presented to Town Council with a final report including the market analysis prepared after receipt of any comments and revisions. ~ BUDGET AND SCHEDULE • ~ EPS proposes to complete the proposed scope of services on a time and materials basis • up to a maximum upset figure of $118,000. This cost is based on the preceding scope of work, which provides a comprehensive analysis of the market potential, operating ~ structure, and long-term financial feasibility. Based on this approach to the issues, the ~ proposed work plan would provide the Town with a thorough understanding of each • component of the study. The project, as currently scoped, provides both breadth and depth. in the analysis of the ~ issues. The work program has been designed and budgeted to provide the Town with a ~ thoroughly documented analysis that provides a solid foundation for this major . undertaking on the part of the Vail Community. ~ The project budget is shown on the following page in Table 1 and reflects the hours by ~ staff member, the subconsultant fees, and reimbursable expenses. The reimbursable fee • will be used primarily to cover travel expenses and reproduction costs. The scope and budget should be considered a draft and can be modified to expand or decrease certain ~ elements of the work program. ~ 13 • • • • • • • • • • • • • • • • r r Table 1 Project Budget Vail Conference Center Market Analysis and Business Plan Task Description Prin. Assoc. Prod. EPS Staff Alde Cree Grand Total Phase I Task 1 Exisitng Vail Conference Market 24 24 0 $6,600 8 $1,000 $7,600 Task 2 Existing Vail Group Business 8 8 0 $2,200 8 $1,000 $3,200 Task 3 Survey of Colorado/Regional Organizations 4 8 0 $1,500 8 $1,000 $2,500 Task4 Compeitive Facilities Evaluation 8 20 0 $3,400 8 $1,000 $4,400 Task 5 State and National Conference Profile 8 24 0 $3,800 16 $2,000 $5,800 Task 6 Facility Utilization Forecasts 16 16 0 $4,400 8 $1,000 $5,400 Task 7 Preliminary Building Program 16 48 0 $7,600 16 $2,000 $9,600 Task 8 Economic and Fiscal Impacts 8 32 0 $4,600 0 $0 $4,600 Task 9 Draft Reports 1& 24 $6.080 $ $7.080 Subtotal 108 204 16 $40,180 80 $10,000 $50,180 Phase II Task 10 Building Conceptual Plan 8 8 0 $2,200 8 $1,000 $3,200 Task 11 Construction Budget 4 4 0 $1,100 4 $500 $1,600 Task 12 Capital Financing 8 12 0 $2,600 0 $0 $2,600 Task t3 Preliminary Operating Plan 8 8 0 $2,200 16 $2,000 $4,200 Task 14 Operating Proforma 16 24 0 $5,200 8 $1,000 $6,200 Task 15 Project Refinements 4 4 0 $1,100 4 $500 $1,600 Task 16 Final Report and Presentation 24 24 $7.920 $ $$822 Subttotal 72 84 24 $22,32D 48 $6,000 $28,320 Total Hours 180 288 40 128 Billing Rates $175 $100 $55 $125 Total Costs $62,500 $16,000 $78,500 Subconsultants' RRC $15,000 $15,000 Shaw Construction $5,000 $5,000 Melick Associates $15,000 $95,000 Total Subconsultants $35,000 $35,000 Expenses Travel $2,500 Other Expenses $2,000 Total Project Expenses $118,000 Subconsultant budgets may vary depending on project requirements 14 The proposed schedule is shown in Figure 2. We have proposed asix-month schedule with final report production and presentations scheduled for the seventh month. Figure 2 Project Schedule Vail Conference Center Market Analysis and Business Plan Months Task Description 1 2 3 4 5 6 7 Phase I Task 1 Exisitng Vail Conference Market Task 2 Existing Vail Group Business Task 3 Survey of Colorado/Regional Organizations Task 4 Compeitive Facilities Evaluation Task 5 State and National Conference Profile Task 6 Facility Utilization Forecasts Task 7 Preliminary Building Program Task 8 Economic and Fiscal Impacts Task 9 Draft Reports Phase II Task 10 Building Conceptual Plan Task 11 Construction Budget Task 12 Capital Financing Task 13 Preliminary Operating Plan Task 14 Operating Proforma Task 15 Project Refinements Task 16 Final Report and Presentation 15 As requested in the RFP, the hourly billing rates for the consultant team members are provided below in Table 2. Additional tasks could be included in the project on a time and materials basis. For each of the firms, it is likely that associate staff would be assigned to the expanded scope, and would be billed at lower rates. Table 2 Consultant Team Billing Rates Vail Conference Center Market Analysis and Business Plan Economic 8 Planning Sysfems Walter Kieser $225 Dan Guimond $165 Associates $100 Alder Creek Corporation John Burchmore $150 Melick Associates Chip Melick $135 RRC Associates Chris Cares $140 Shaw Construction Clark Atkinson $130 16 Economic Planning Systems. Pu'ot~c Ftn nice R_ea] Esfnte Ecorscn:ics Re~ionc?Economics Lnni% lise Policy RELEVANT EXPERIENCE • • • • i ABOUT ECONOMIC & PLANNING SYSTEMS The Firm Economic & Planning Systems (EPS) is a land. economics consulting firm experienced in the full. spectrum of services related to real estate development market analysis, publie/private partnerships, and the financing of government services and public infrastructure. Guiding Principle EPS was founded on the principle that real estate development and land use-related public policy should be built upon realistic assessment of market forces and economic trends, feasible implementation measures, and recognition of public policy objectives, including provisions for required public facilities and services. Areas of Expertise Real Estate Market and Feasibility Analysis • Public Finance • Fiscal Impact Analysis • Economic Impact Analysis • Reuse, Revitalization, and Redevelopment • Housing Development Feasibility and Policy • Regional Economics and Industry Analysis • Land Use Planning and Growth Management • Open Space and Resource Conservation • Government Organization • Transportation Planning and Analysis Clients Served Since 1983, EPS has provided consulting services to hundreds of public and private sector clients throughout the United States. Clients include cities, counties, special districts, multi-jurisdictional authorities, property owners, developers, financial institutions, and land use attorneys. Staff Capabilities Each of the firm s three Managing Principals has over twenty-five years of professional experience providing a broad range of economics consulting services. The professional staff includes specialists in public finance, real estate development, land use and transportation planning, government organization, and computer applications. The firm excels in preparing concise analyses that disclose risks and impacts, support decision making, and provide solutions to real estate development and land use-related issues. Office Locations Denver, Colorado and Berkeley and Sacramento, California EPS Web Site www.epsys.com CONFERENCE 8~ ENTERTAINMENT FACILITY MARKET AND FINANCIAL ANALYSIS SERVICES PROVIDED EPS prepares real estate market and financial feasibility analysis for a diversity of real estate development projects that have a conference, event center or entertainment facility component. Our services provide a realistic assessment of real estate market trends to determine the potential market and community support for a given project, EPS's feasibility analysis evaluates the potential financial returns and feasibility of a project, drawing upon our market research of product types, location requirements, and pricing. This market and feasibility information is used in a wide variety of applications, such as assessing individual project feasibility, development project design and prograznining, property disposition strategies, downtown revitalization and redevelopment efforts, specific and comprehensive land use planning, and. creating financing and implementation strategies. The firm's market analysis efforts range from evaluations of existing market information to detailed project-specific market forecasts that utilize consumer surveys and other primary research. Pro forma cash flow models test feasibility under a range of project alternatives, financing, and partnership options, disposition strategies, and measures of financial return. REPRESENTATIVE CLIENTS • Santa Monica Civic Auditorium Market Assessment, SANTA MONICA, CALIFORNIA ^ Cripple Creek Special Events Center, CRIPPLE CREEK, COLORADO • King County Airport Convention Center Feasibility Study, KING COUNTY, WASHINGTON ^ Capri Theater Building Reuse Study, CONCORD, CALIFORNIA ^ Shelter Island Asset Evaluation and Improvement Plan, SAN DIEGO, CALIFORNIA ^ Livermore RDA Downtown Development Study, LIVERMORE, CALIFORNIA • Market and Fiscal Analysis (EIR) of the Ballena Isle Project, ALAMEDA, CALIFORNIA • Vallejo Triangle Parcel Market Analysis, VALLEIO, CALIFORNIA • ,Rio Vista Base Market Study, RIO VISTA, CALIFORNIA • Market Analysis for Recreational Boat Basins, PLAYA VISTA, CALIFORNIA • Port of SF Pier 30 /32 Negotiation Support, SAN FRANCISCO, CALIFORNIA • Ventura Centerplex, SAN BUENAVENTURA, CALIFORNIA • Urban Land Institute Advisory Panel on the Downtown Revitalization, HOLLYWOOD, CALIFORNIA 1 PROJECT PROFILES Santa Monica Civic Auditorium Market Assessment Santa Monica, California As a part of the Civic Center Specific Plan process, the City of Santa Monica is evaluating the reuse potential of the Santa Monica Civic Auditorium. ("the Civic"). The redevelopment of a public facility like the Civic Auditorium provides a unique opportunity to the City, as an auditorium is a major financial. and community asset that can be leveraged to help the City meet its public goals. The CCSP planning process is allowing the City to make a careful determination of the future role the Civic will play in the community and region as a whole. ~ EPS was hired by the City to conduct a market and financial assessment of the reuse • potential of the Civic. The analysis explores the existing conditions of the Civic, and its future potential for three distinct uses: l) a performing arts theater; 2) a conference center; ~ and 3) a concert venue. For each of these reuse alternatives, EPS analyzes the demand ~ for the facility use within the market area, assesses the competitive supply, and. estimates • unmet demand. in addirion, the study determines the facility improveme-r~ts that ~Jould need to be made to the Civic in order to capture this excess demand, and evaluates the • financial implications of these costs to the City. EPS is currently preparing its final ~ analysis and recommendations to be presented to the City within the upcoming weeks. • ~ Cripple Creek Special Events Center _ Cripple Creek, Colorado • In 1991, a state referendum permitted casino gaming in three historic mining towns to . stimulate historic preservation and reuse. Ten years later, Cripple Creek has 18 casinos with over 450 gaming devises. The City has promoted festivals and other activities to ~ diversify the tourism base and attract more visitors. Most of these events are outdoors ~ and during the summer, as the lack of facilities for large events limits these uses during the rest of the year, The City was interested in a special event center as a means of accommodating special events and festival activities, as ~n~ell as conventions and ~ meetings, throughout the year. EPS evaluated the three separate markets for group events in Cripple Creek, meetings and conventions, special events, and entertainment. Organizations holding conventions in Colorado were surveyed regarding their current meeting patterns and their opinion of Cripple Creek as a meeting destination. For the special events market EPS evaluated the facility needs of existing events and surveyed other Colorado resort communities regarding event success and facility use. For the entertainment market, EPS interviewed. facility managers and promoters and determined opportunities for Cripple Creek, should adequate facilities be available. The ideal facility identified was a multi- functional building with an 8,000-square-foot ballroom for conventions of up to 300, banquets of up to 600, and concerts up to 1,000. However, the forecast utilization did. not support the total capital cost. EPS therefore recommended alower-priced-event tent to extend the summer season and build utilization to levels to the point where permanent construction could be justified. 2 King County Airport Conference Center Feasibility Study King County, Washington King County (County) is conducting long-range planning for of the King County International Airport (KCIA) and. its related facilities serving airfreight, general aviation, . and corporate clientele. Currently some of the terminal facilities are underutilized and . the County is investigating alternatives for this space that are compatible with the mission of the Airport, provide a benefit to the region, and are financially feasible. . EPS evaluated the feasibility of a conference center in the terminal building, including whether the demand for meeting and event space is being met by existing and planned facilities in King County, and whether conference facilities could be successful. at KCIA. . Capri Theater Building Reuse Study Concord, California • The owner of the recently closed Capri Theater was interested in exploring reuse options ~ for the facility, which includes about 35,000 square feet of office/retail space and a tl.ree- screen, 760-seat theater. Located in the aging Park-N-Shop Center in Concord, the Capri closed in part as a result of competition from a newly opened 12-screen theater nearby. ~ EPS evaluated the market and financial feasibility of three potential reuse options: (1) continued use as a movie theater; (2) use for a retail establishment(s); and (3) use as an event/conference center facility. The retail analysis included a review of the existing ~ market conditions in the Central Contra Costa County retail sector and the competitive ~ position of the Park-N-Shop Center within it. The theater analysis evaluated the market • dynamics for movie theaters within fhe market area relevant to the Capri Theater building. Finally, EPS evaluated the supply and demand for event/conference center ~ space in the Central County and the competitive attributes of the Capri building for this ~ use. Shelter Island Asset Evaluation and Improvement Plan • San Diego, California ~ The Port of San Diego was interested in evaluating possible redevelopment • opportunities on Port-owned land linked to surrounding mixed use and commercial development. In particular, they wanted to create stronger linkages between their land . holdings around the America's Cup and Yacht Basin on and near Shelter Island and the ~ prospering tourist and convention industry of the downtown San Diego area. ~ As part of amulti-disciplinary team, EPS evaluated the market potential for various land. ~ uses, including hotels, housing, time-shares, convention space, and a public market. EPS prepared a detailed financial and implementation program including a cash flow ~ pro forma .for a possible hotel development. ~ 3 • ~ Livermore RDA Downtown Development Study • Livermore, California ~ The Livermore Redevelopment Area Developers, working with the Livermore ~ Redevelopment Agency, was proposing a number of major projects as a part of its • downtown revitalization plan. Downtown projects included a 10-screen multi-plex • theater, a hotel and conference center, a performing arts center, a medical facility, and new retail development. . EPS was asked to evaluate the economic and financial performance of proposed RDA • projects and to create a financing plan to address the needs of the City and Project developers. EPS's analysis included an evaluation of the projected market performance ~ .and economic impact of the proposed 10-screen Cinemark Theater, and a detailed ~ projection of the Livermore RDA's tax increment revenue over a 10-year period. In . addition, EPS analyzed. the new project's anticipated fiscal impact on the City of Livermore's General Fund. Based on the findings of the analysis, EPS reviewed the ~ RDA's financial program for the redevelopment of the project area and made ~ recommendations regarding an overall development and financing strategy. ~ The Chabot-Las Positas Community College District Workforce Training Center ~ Livermore, CA ~ The Chabot-Las Positas Community College District was seeking to relocate and expand its workforce training program by developing a new facility in downtown Livermore on " " smart a site donated by the City. The new facility would include state of the art . classrooms and auditorium, with interactive video-conferencing and capabilities and ~ computer terminals, which would be rented to the public for training seminars, • conferences, and other events. The new facility was expected to improve the District's visibility in the Tri-Valley and enhance its ability to partner with the two Department of • Energy national laboratories. However, prior to accepting the Land and building the ~ facility District sought to determine what, if any, one time or on-going subsidy would be ~ required for successful project implementation. The District hired EPS to evaluate the financial feasibility of the proposed project and to ~ assist in further refining the development concept. Using interviews, case studies, and ~ other market research, EPS estimated the revenue that could be generated to support the . development and operation of the facility under various project scenarios. As part of this effort, EPS evaluated the market demand and supply conditions for event and ~ conference facility space in the Tri-Valley area. EPS then conducted a proforma analysis ~ to test the overall. financial feasibility of the project and identify the "gap" that would • need to be funded by the District or through private donations. . 4 Market and Fiscal Analysis of the Ballena Isle Project ~ Alameda, California EPS conducted a market and fiscal analysis for a proposed hotel and conference center on a 20-acre island in Alameda, California. The purpose of the study was to determine the market support for the project, to estimate the amount of tax revenues generated • from the project, and to assess the incremental demand for public services as a result of developing the project. Alternative hotel sites on the island were also analyzed as part ~ of the study. Rio Vista Base Market Study Rio Vista, California The City of Rio Vista is requesting conveyance of a 28-acre site along the Sacramento River on the edge of town from the U.S. Army. To support the conveyance and the Army's cleanup of the site, a Reuse Plan is required that describes the types and amounts of new development that would occur at the site once conveyed. The concept for the site includes a -variety of recreational uses, nevi lodging or a cer{erence center, and retail and research facilities. EPS was retained to conduct the first phase of the Reuse Plan, which included a market and financial feasibility analysis of the proposed concept for reuse. EPS was prime consultant to three sub-consultants for this effort including an urban designer, civil engineers, and a construction engineer. ~ EPS. first conducted a market feasibility analysis to determine if new lodging could be ~ supported at the site and whether a marine research facility could be developed. EPS ~ also assisted the City and Local Redevelopment Authority (LRA) in developing a • strategy to interact with the U.S. Army and the various public agencies involved in the clean up of the site. EPS found that lodging could be supported at the site but at a ~ smaller scale than that originally envisioned by the LRA. No potential users of a marine . research facility were identified. EPS also assisted the City in preparing additional grants to solicit funds to develop the new recreational facilities envisioned for the site, • including a new multi-purpose community center. • ~ Market Analysis for Recreational Boat Basins Playa Vista, California ~ The Playa Vista Capital Company LLC is proposing to develop two recreational boat • basins and waterways as part of a mixed use development in Los Angeles County adjacent to Marina Del Rey. The proposed development is within the Coastal Zone and ~ requires permits from the Coastal Commission. The proponent has proposed to ~ incorporate two recreational boating facilities -open to the public - as an integral part of • the development. The Coastal Commission staff has expressed concern about whether there is demand for such facilities beyond the immediate residents of the new Playa Vista development. ~ 5 ~ EPS prepared a market analysis to address the concerns of the Coastal Commission and • to assess market support for recreational boating facilities at Playa Vista, EPS • researched trends in paddleboat sports and recreational boating and conducted several. case studies of both .public and private lakes and boat basins in California. In addition, EPS interviewed several recreational directors, local paddleboat concessionaires, and • industry experts. The study concluded that there was sufficient market support for the • proposed boat basins and that they would serve not only the new residents at Playa Vista but also existing and future residents in the Los Angeles region. The results of the ~ market study were presented to Coastal Commission staff. Port of SF Pier 30/32 Negotiation Support • San Francisco, California ~ The Port of San Francisco was seeking to develop a major mixed use project, anchored . by an international passenger cruise ship terminal, on a scenic waterfront site near • downtown San Francisco. The site is Located along the waterfront midway between the San Francisco Bay Bridge and the new Giants baseball stadium. Intended uses included a office, retail, a hotel, and a public event center. Working for the Port in support of its developer negotiations, EPS evaluated the market and financial feasibility of proposed development concepts for the Port property, reviewed the developers' financial proposals, evaluated methods for utilizing public financing for a portion of the project, recommended negotiating principles and business terms, and managed the efforts of several subconsultants in various technical specialties. One of the concepts included use of the cruise terminal as a public event facility during off-season months. Ventura Centerplex San Buenaventura, California EPS assisted the City of San Buenaventura in a mixed use project that involved construction of a multi-use stadium, development of destination retail, expansion of the Ventura Auto Center, and other recreational uses. EPS prepared a financial analysis related to infrastructure requirements, market feasibility of the various uses, and negotiation of terms with private-sector participants. The Auto Center negotiations involved relocation of several dealers presently located in the City to the Auto Center, as well as joint funding of infrastructure and access improvements and signage. ~ Economic Feasibility of El Cerrito Del Norte Development Proposals ~ City of El Cerrito ~ The City of El Cerrito was considering various development strategies for two parcels, ~ totaling about 5.5 acres, located in a commercial district adjacent to a Bay Area Rapid . Transit (BART) station. One site served as a parking lot for BART patrons while the other was vacant. The City wanted to see the two sites utilized more intensively and u1 away that both enhanced existing downtown development and was consistent with ~ expressed community preferences. However, development of the BART parking site would require the added expense of providing replacement parking for BART Patrons. ~ 6 ~ For the City of El Cerrito, EPS evaluated the market potential and financial. feasibility of • the following uses at the Del Norte BART station sites: (1) amulti-screen movie theater, • (2) retail, (3) office, and (4) multi-family housing. The analysis focused on the size, market orientation, product mix, and overall feasibility of each of the proposed land uses, as well as the development strategies as a whole. For each use, the analysis examined the competitive attributes of the Del Norte site relative to market area demand • and supply characteristics. In addition, EPS generated cash flow pro formas for each use to determine residual land values, potential tax revenues to the City, and the ability to ~ cover the cost of replacement parking. ~ Market and Financial Analysis of Vallejo Waterfront Development ~ Vallejo, CA The City of Vallejo, working with the Callahan Property Co. and The DeSilva Group, was developing a strategy to revitalize the downtown waterfront area. The project . included a mix of residential, recreational, and retail uses on approximately 50 acres of • waterfront property to be integrated with the downtown and the existing ferry service to San Francisco. Working with Callahan Property, EPS helped design and evaluate a development strategy for the waterfront area that would be both financially feasible and have sufficient market support. As part of this analysis, EPS reviewed project-wide cost and revenue projections and suggested alternative phasing and financing mechanisms to facilitate overall feasibility. EPS also evaluated the likely financial performance of a new multi-plex theater as part of the waterfront project and its ability to pay a share of the costs associated with a new parking structure.- The parking structure would replace the current ferry surface-parking site, freeing up land. for alternative uses. The analysis also included an evaluation of the market support for a new theater and its likely impact on the City's two existing theaters. Market and Financial Analysis of Livermore RDA Projects Livermore, CA The Livermore Redevelopment Area Developers working with the Livermore Redevelopment Agency was proposing a number of major projects as a part of its plan to revitalize the downtown area. Downtown projects included a 10 screen multi-plex theater, a hotel and conference center, a performing center, a medical facility and new retail development. EPS was asked to evaluate the economic and financial performance of proposed RDA projects and to create a financing plan to address the needs of the City and Project developers. EPS analysis included an evaluation of the projected market performance and economic impact of the proposed ten-screen Cinemark Theater, and a detailed projection of the Livermore RDA's tax increment revenue over aten-year period. In addition, EPS analyzed the new project's anticipated fiscal impact on the City of Livermore's General Fund. Based on the findings of the analysis, EPS reviewed the RDA's financial program for the redevelopment of the project area and made recommendations regarding an overall development and financing strategy. 7 Marblehead Retail Market Study City of San Clemente .The City of San Clemente was seeking to approve aregion-serving commercial development concept on a 60-acre site along Interstate 5 that would not adversely ~ impact other major retail. centers in the City. Before approving the commercial development, the City wanted to identify and evaluate potential uses that would take • advantage of the site location, while preserving the viability of nearby commercial establishments, especially in the downtown. • EPS evaluated market supply and demand conditions for selected retail and commercial uses for the Marblehead Coastal site. The developers proposed a project that included a Target and other Big Box retail, a supermarket, and destination/visitor-oriented retail with an entertainment center anchored by amulti-screen movie theater. The analysis • was based on a variety of factors, including retailers' likely acceptance in the market and compatibility with other existing or planned uses in the City. As part of this analysis, EPS determined existing and future market support, as well as measured retail leakage to other jurisdictions.' EPS recommended that the site be oriented towards • visitor/entertainrnentrctail and i:~clude an outlet mall. Lodging on the site v~~as also recommended and evaluated as a follow-up study. Danville Commercial Development Options Town of Danville • The Town of Danville was considering the feasibility and impact of two proposed food- oriented retail developments, one in downtown and the other on highway frontage. Before approving these proposals, the Town of Danville wanted to determine what, if any, alternative commercial uses could be feasibly developed on the sites. The Town was especially interested in identifying commercial uses that were both consistent with • their development goals and appropriate to the locational attributes of each site. ~ EPS identified a variety of potentially viable commercial uses for the two parcels in . Danville for the Development Services Department. EPS then evaluated the market l feasibility of the selected commercial uses which included specialty retail, a retai r "Power Center," a food court, a movie cinema complex, and a hotel. The analysis also examined the potential competition between the various uses identified and with other • existing businesses in the Town. Impacts on the downtown area were also considered. Mid-Embarcadero Open Space Study ~ San Francisco, California ~ The City of San Francisco needed to determine a disposition strategy for two vacant blocks in a prime location in the City's downtown; the blocks were transferred to City S ownership following demolition of freeway ramps in the wake of the 1989 earthquake. EPS conducted an economic and implementation evaluation for several options and uses, including amulti-plex theater, hotel, retail, restaurants, offices, public market, and museums. The analysis included market research and creation of pro forma cash flows for each use, as well as combinations of uses. • S Port of San Francisco Financial and Economic Impact Analyses San Francisco, California As part of the formulation of a Waterfront Land Use Plan, EPS conducted a financial and economic impact analysis of Port operations. The purpose of the analysis was to test and evaluate the interaction of various land uses (maritime and non-maritime) from a financial and economic impact standpoint in order to develop the optimum mix of land uses for Port property. Amulti-screen movie complex was one of the key uses evaluated, in addition to retail, office, and hotel development. EPS, working closely with Port staff, developed a spreadsheet model that was provided to the Port for further evaluation of alternatives. Telluride Region Commercial and Accommodations Study Telluride, Colorado The Town of Telluride has experienced changes in its economic base due to a dramatic increase in second home construction. In addition, commercial rental rates have increased to the degree that only high-end tourist oriented retail uses and services can afford the rent. The high rents and diminishing local workforce have also contributed to the demise of many community-serving retail uses and services, further eroding the community fabric of the commercial core. The Town believed that the remaining vacant land in the region should address community needs with essential community-serving land uses: • EPS conducted an economic base analysis, quantified the major characteristics of the existing economic base including visitation, lodging occupancy, retail sales and leakage. Based on economic and demographic forecasts for the Town and region, EPS determined future demand for lodging units and commercial space by type. Land demand was then compared to existing vacant land supply as well as zoning requirements and market influences to establish the development capacity for the Town. This carrying capacity provided the framework for recommendations and potential regulatory changes to foster desired development. Snowmass Economic Base and Fiscal Impact Study Snowmass Village, Colorado Completion Date: January 2003 The Town of Snowmass Village has endeavored for several years to respond to changes in local infrastructure and resort amenity needs, the Colorado. destination resort market, and a range of development proposals. As a part of its comprehensive planning efforts and discussions with the community, the resort association and the Aspen Skiing Company, the Town sought to prepare a comprehensive economic model that relates the various dimensions of the resort community's economy and fiscal affairs. EPS was retained to prepare this model. 9 The economic model dynamically links real estate supply, including lodging, residential units, and retail/commercial space to demand derived from residents, overnight guests, and day visitors. Another component of the model monitors the Town s public service costs and public revenues derived from local value and economic activity. The model is being applied to shape and evaluate the fiscal impacts of individual development projects and the cumulative effects of expected growth and development. EPS has recently completed a fiscal impact analysis of the proposed Base Village project using this fiscal model. 10 M E L I C K A S S O C I A T E S I N C FIRM DESCRIPTION - Melick Associates, Inc. is a creative design studio of 7 professionals offering comprehensive architecture, interior design and master planning services to a .faithful and expanding client base, :Founded in 1994, the firm. offers many collective years of technically sound and Highly creative design expertise. Melick Associates focuses their design efforts on resort and hospitality projects such as exhibit and conference centers, hotels; spas and restaurants in mountain communities throughout the western United States. MISSION STATEMENT We strive to maintain a company culture that embraces owners, contractors, consultants and staff members within a unified teams As the team leader, we; ,focus on maximizing our creative abilities to develop the highest and best design. -and technical solutions in response to your needs. In a team effort, we develop design solutions, from concept to reality, with the image and degree of 'sophistication you desire. PHILOSOPHY We approach.-each pro~}ect . as being unique _ and listen..-carefully to fully.- understand your specific needs and requirements. We strive to develop fresh,' creative design solutions based on the balance of site, program, image, quality, budget and schedule. OUR LOGO "From Concept to Reality" Our approach to design is represented by the line drawing of our logo: thee. :outer edges as the original conceptual design, continuing the sketch to refine the concept, and finally the hard-line representing the right solution. PERSONALIZED FOR Conference Facility Town of Vail 07.03.03 M E L I C K A 5 S O C I A T E S I N C .v~ ~' :;-~- }~ ;'- ~'- ;Keystone Conference Center Keystone, Colorado' Location: On the north side of Highway 6 in Keystone Solution: The new structure was located on axis with the existing pedestrian tunnel beneath Highway 6. The ori- entation of the building accommodated the views of the Tenmile Range and Loveland Pass from the two major pre-function spaces adjacent to the 16,000 square foot Challenge: To provide a new state-of-the-art conference ballroom. The ¢000 square foot second floor meeting center facility to be the largest in the Rocky Mountain space was designed to be circular in shape to take full region. 'The facility was required to be sensitive to the advantage of the views. The back-of-house functions natural beauty of the site and take advantage of the views included a full service kitchen and bakery, boardroom, to the Tenmile Range, Keystone Ski Mountain and conference services offices, and entry lobby. Loveland Pass. The new facility was to be accessible to ;pedestrians and vehicles by utilizing the existing circula- Project Data: tion systems. S> 0.2 Million 60,000 square feet, 1,800 conferees M E L I C K A S S O CIA 7 E 5 I N C Keystone Conference Center Keystorie,Colorado° 1. J '~' ~~ ~~y ~~; ,~ _ "~ ;fwd ~~~ , ` ` v _ ~ ~ ;. ~ ~ ~. ` ^~ ~~ ' ~ S R i \ ~~ ~ ~ C 7 ~II. 1 l J , ~. , ~ irk \ ; u ~ Rb, i; 1 1 ~ ( ( `t i1t r, i h , ~I r ~ is."h (~ ~mr M E L i C K A 5 S O C 7 ATE S I N C 1 .' Keystone ExhibiT Hall ~- •- ~' Ke s [on e, Col nra d o Location: North of Highway u, adjacent to the ~;~ Keystone Conference Center. ~ { z~ ~ - ~ Challenge: To expand the Keystone Conference Center by 50,000 SF of space for additional - ^}~ ~ ~~ ~ ~~ ~ meeting space, plus all associated pre-function and ~ ~_ hack-of-house functions. 'Solution: The building was sited to accommodate a future hotel structure to the east. The interior , circulation was developed off the main existing' pre-function space. Massing of the new structure provided a court entry apace from the Resort _. ~ - <; , transportation system, ensuring clear pedestrian access ..a -" ~ - - 'within and to the new facility. The use of stone and its : modulation on the exterior were designed to be compatible with the existing building fenestration and '"` ~ !pre-cast concrete panels. ,' ~ _ Project Data: $ j.0 Million 50,000 SF Completed April 2000 M E L I C K A 5 S O C I ATE S I N C • M E L I C K A S S O C I A T E S I N C • PUMP` 01 5r~ l L4Fti 1 ~ .r. _ _ • r 4 ~',,.:y':~_ ~ 7,64.E -'R ~ If • • Phase I Eagles Nest @ Mail • T V a i 1, C o I o r a d o • _ Wiz' ""is";. - Location: Located on a ridge overlooking the Game • s = Creek Bowl atop Vail Mountain. • ~ ~ ,f> >t.,~..~ Challenge: To develop accessible dining for skiers off grade, a new gondola terminal, and conference and ban- quest facilities as a link to the L,ionshead Redevelopment. • Phase II Solution: %-R Phase I provides a new gondola terminal to the west, a new c~:~ restaurant to the south with terrace seating, Phase IT provides new conference/bangl ct space on a new ; • floor added to the building. Phase III relocates the third level dining space to the • ground floor and mevvanine to the east and utilizes the • Phase III't~ - ihird floor space for meeting and banquet space. Project Data: .mow' -5c3 72,000 Square Fcet 1,200 Dining Scats, Conference/Banquet Capacity 1,800 • • • M E L I C K A S S O C I A T E S I N C r _- • -- ',T% .y,.. ~ "' h i Omni International Hotel two perimeter spaces on both sides of the balh•oom were I~~orfolk,Virginia` ' designed with dr}'<vall and mahogany coffered ceilings 'with recessed downlights. The central space between the Location: Located at the Omni International Hotel in two rows of columns was designed with a barrel vaulted `IQorfolk within a block of the inner harbor. drynvall ceiling and cove lighting to provide a contrast. to the adjoining spaces. Mahogan}' trims were used Challenge: To design a ballroom in an unfinished space throughout. tivithin the existing hotel. The space although planned for a balh•oorn had Four columns within the space. Project Data: 52go,ooo Solution: Created a ballroom utilizing the interior ', • q.,0oo square feet. !columns for defining spaces within the balh•oom. 'The • • i r ~~ A S S O C I A T E S Research • Planning • Design 4940 PEARL EAST CIRCLE • BOULDER, CO 80301 303/449-6558 • www.rrcassoc.com RRC. Associates is a research and consulting firm that provides services to a wide range of clients with specialization in the sports, travel and recreation industries. In addition, RRC offers services in planning and design to local governments, public agencies and private developers and corporations. RRC Associates also provides consulting advice, Market segmentation and long-range strategic planning are particular strengths of the firm. In a blending of disciplines, RRC uses market research tools to improve design quality and decision- making by a variety of clients. RRC Associates is made up of a diverse group of professionals with extensive experience and training in marketing research, focus groups, and planning and design. Currently, the firm employs 20 individuals with backgrounds in business administration, consumer behavior, computer science, planning and psychology. RRC strives for a pragmatic approach which balances innovation with working efficiently and economically. Our early adoption of techniques for conducting surveys on the Internet, and our blending of focus groups with traditional quantitative research, has made us a leader in state of the art information gathering. The RRC staff is creative in managing projects and responsive in addressing unique situations. We customize services to meet the specific needs of individual clients. SERVICES OFFERED Survey and Market Research Market Analysis Site Selection Research User Needs Surveys Demographic Research Internet Surveys The Boulder Focus Center Focus Group Recruitment Focus Group Facilitation Research Analysis and Interpretation Land and Development Planning/Design Site Analysis and Development Suitability Program Development and Optimization Project Feasibility Analysis Master Development Plans Planned Unit Developments Implementation and Phasing Strategies Public Processing and Approvals Design/Development Guidelines Goals and Policy Formulation Housing Studies Capital Improvement Programming Population and Employment Research/ Analysis Regulation and Ordinance Evaluation Zoning and Subdivision Ordinances Historic Preservation Ordinances Growth Management Ordinances Impact Assessment Analysis of Development Plans Cost-Revenue Analysis Environmental Impact Assessment Coordination Special Client Services General Consultation Project Team Coordination and Management Financial Presentation Packages Public Participation Workshops Strategic Project Positioning Workouts and Repositioning Strategies Contacts: Nolan Rosall, nolan@rrcassoc.com Chris Cares, Chris@rrcassoc.com RRC A S S O C I A T E S Research ~ Planning • Design i i • i • r • i r • • • • MEETING PLANNER RESEARCH AND FOCUS GROUPS RRC Associates has conducted a variety of meeting planner research and focus groups for Colorado mountain resorts, in support of conference center feasibility analyses and marketing efforts. • Copper Mountain, 2003: RRC conducted a focus group with meeting planners in Denver, as well as an email survey of meeting planners nationally (186 responses), to better understand a variety of issues with respect to Copper Mountain as a conference destination. The research examined such issues as Copper's strengths and deficiencies as a conference destination; competitive conference facilities in Colorado; differences between urban and resort locations in planning for conferences; communications and incentives with planners; and other issues. RRC also conducted meeting planner research for Copper in winter 1990/91. • Vail, 2000: To help in the feasibility planning for a proposed conference center in Vail, RRC conducted focus group research with meeting planners in Denver, The research was especially aimed at understanding the features and amenities that would encourage planners to use Vail for meetings. Topics included Vail's strengths and weaknesses for conferences; transportation and lodging considerations; specific physical characteristics of the proposed facility in Vail at the time; desired meeting facility services and amenities; cost issues (willingness to pay a fee to use space in Vail compared to free use of space in a metro area); and design and programming issues. • Crested Butte, 1998: To help Crested Butte better position itself in the meetings market, RRC conducted focus groups with meeting planners in Denver and Dallas to understand the processes and criteria in deciding where to book meetings, particularly at resorts; the importance of resort amenities and activities, both summer and winter; lodging and transportation considerations; information sources and the impact of advertising; reservation processes; awareness and evaluation of meeting experiences at Crested Butte; and other issues. • RRC • A S S O C I A T E S • Research • Planning • Design GENERAL RESEARCH IN VAIL • RRC Associates has conducted an extensive array of research in the Town of Vail for two decades, providing it with an in-depth understanding of a variety of issues in the community that faetor into the conference center • discussions. Examples of research include: • Vail Valley Visitor Research: RRC has conducted a variety of visitor research in the Vail Valley over the i past several years. This includes summer visitor research conducted on behalf of the Vail Valley Tourism and Convention Bureau, winter visitor research on behalf of Vail Resorts, and selected other surveys such as airport user surveys, lodging guest surveys, and second homeowner surveys. • Vail Task Force: RRC helped facilitate regular discussions between the Town of Vail, Vail Resorts, and the • leaders of selected other community groups on issues of mutual interest, regarding such issues as resort and community planning and economie vitality. • Town of Vail Parking Research: To better understanding issues related to parking in Vail, RRC has conducted intercept surveys in Vail periodically (most recently in winter 2001/02) aimed at better understanding parking user characteristics, trip characteristics, and spending patterns, • Town of Vail Community purvey: RRC has conducted the Town of Vaii's annum Community Survey for tree past several years, gauging community opinion on a broad variety of local issues. • Town of Vail /Eagle County Affordable Housing Research and Planning: With a team of other housing experts, RRC conducted housing needs assessments for Eagle County and its communities in 1990,1996 and 2001. RRC also provided consulting assistance to the Town of Vail for the Middle Creek and Vail Commons housing projects. • Miscellaneous Research: RRC has also conducted research in the Vail Valley for the Vail Valley Medical Center, Eagle County School District, and selected real estate, lodging and transportation companies. t corrs~x-uca~s®`t~ FIRM: YEARS IN BUSINESS: 2002 VOLUME: DESCRIPTION Shaw Construction L.L.C. 41 years - -established in 1962 $130 million CORPORATE PHILOSOPHY: To be a long term builder of significantly high-quality projects for selected owners and experienced architects. To be a good community citizen in the markets in which we build. FINANCIAL REFERENCES: Wells Fargo & Company 2808 North Avenue Grand Junction, CO 81503 (970) 248-4829 Mr. Steve Irion Lockton Companies 4500 Cherry Creek Drive South Suite 400 Denver, CO 80246-1532 (303) 753-2000 Ms. Pat Martin BONDING CAPACITY: EXPERIENCE/EXPERTISE: MANPOWER/RESOURCES HRH/Talbert Corporation PO Box 469025 Denver, CO 80246-9025 (800) 332-9950 Mr. Lee Dartois Single Project Bonds up to $100,000,000 • Hotels, lodges, condominiums and apartments Over 4,500 total units completed • Custom Homes • -Golf and Recreation Projects • Municipal/Special Purpose Projects • Medical Facilities • Schools • Affordable Housing Sufficient staff, field manpower and financial resources to construct projects in the $80,000,000 to $100,000,000 range CURRENT STAFF: • Project Managers -15 (2 licensed Professional Engineers) • Superintendents - 48 • Management & Support Staff - 12 Economic ~ Planning Systems pt:F};~ finance Real E~taie Fco %io~riice Ke~gional Ecoremics Lci2 rf CIc Pc1iCy QUALIFICATIONS OF KEY STAFF EC(In~PIlC ~% Planning Systems Public Firaarece Reny Estate F.co na~nres PegdonaF Economics Cnnd Uce Policy DANIEL R. GUIMOND -CONFERENCE CENTER EXPERIENCE ~ KEY QUALIFICATIONS a • Knowledge of the public assembly industry and the Colorado conference and meeting ~ market. ~ Extensive experience with Colorado mountain community economic and community ~ development issues. ! A commitment to provide objective information that is clear, transparent, and structured in a manner to support policy decision making. ~ SPECIFIC PROJECT EXPERIENCE • ~ Cripple Creek Event Center ~ Cripple Creek, Colorado ~ In 1991, a state referendum permitted casino gaming in three historic mining towns to stimulate ~ historic preservation and reuse. Nearly 10 years later, Cripple Creek has 18 casinos with over ~ 450 gaming devises. The City has promoted festivals and other activities to diversify the • tourism base and attract more visitors. Most of these events are outdoors and in the summer as the lack of facilities for large events limits these uses during the rest of the year. The City was ~ interested in a special event center as a means of accommodating special events and festival ~ activities, and as a location for conventions and meetings. ~ EPS evaluated the three separate markets for group events in Cripple Creek, meetings and ~ conventions, special events and entertainment. We surveyed organizations holding conventions in Colorado regarding their current meeting patterns and their opinion of Cripple ~ Creek as a meeting destination. For special events market we evaluated the facility needs of existing events and surveyed other Colorado resort communities regarding event success and ~ facility use. For the entertainment market, EPS interviewed facility managers and promoters ~ and determined opportunities for Cripple Creek were adequate facilities available. The ideal ~ facility identified was amulti-functional building with an 8,000 square foot ballroom for • conventions of up to 300, banquets of up to 600 and concerts for up to 1,000. However, the forecast utilization did not support a capital cost of $5.0 million. EPS therefore recommended a ~ lower priced event tent to extend the summer season and build utilization to levels to the point ~ where permanent construction could be justified. • BERKELEY S A C R A rn E N T O D E N V E R 2501 Ninth Street, Suite 200 phone: 510-841-9196 phone: 916-649-ft010 pt=one; 3 0 3-5233 5 5 2 Berkeley, CA 94710-2515 fas: 570-841-9203 fax: 976-549-2070 fax 303-F,23-9049 wcvw.epsys.com • DANIEL R. GUIMOND CONFERENCE CENTER EXPERIENCE PAGF, 2 • David Eccles Conference Center and Perny's Egyptian Theater ~ Ogden, Utah ~ Dan Guimond of EPS was the market and financial consultant (while employed by Hammer, • Siler George Associates) to determine the feasibility of a downtown convention/ conference center to be built adjacent to, and in conjunction with, the renovation of the historic Egyptian ~ Theater in Ogden, Utah. Tom Pickering was marketing consultant on the project. The ~ feasibility study first determined the size of the conference and meeting market and the type • and amount of performing arts usage that could be accommodated in the renovated theater. Based on the projected utilization, we determined that the theater should perform a dual ~ function as a space for plenary sessions for conventions and meetings. Based on the forecasts of ~ the amount, type and size of meetings and other group functions that could be attracted to . downtown Ogden, we then provided the architectural team with building space requirements which was used to develop the building program. We then developed an operational plan ~ outlining staffing requirements for managing and marketing the completed conference and ~ performing arts facilities. The feasibility analysis also included both operating and capital pro- • forma financial analyses and identification of external funding requirements. The completed facilities opened in 1997. ~ Garfield County Expo Center ~ Rifle, Colorado ~ Dan Guimond of EPS was the project manager and primary economic and financial consultant for a feasibility study for amulti-use arena and convention facility in this western slope . community. The concept of an arena to attract additional equestrian-related events to the ~ county's fairground was the initial proposed concept. However to promote greater community use and to gain voter support (a 1/4 cent sales tax was approved to undertake the feasibility ~ and construction of the project), the concept was expanded to include meeting and exhibit space ~ that could be used for both meetings and conventions, as well as community uses. The • feasibility study included a determination of the type, number, and size of events the community could attract if suitable facilities were built. The patronage forecasts were ~ developed through a survey of state and local associations holding annual meetings in ~ Colorado, interviews with equestrian organizations holding shows in western states, and • contacts with similar multi-use facilities in western states. Based on the forecasted event schedule, a preliminary building program was developed and alternative sites evaluated with a site chosen on the existing county fairgrounds. Our financial analysis indicated the City's sales ~ tax would not generate adequate revenues to build and operate the facility, and that the concept • would need to be broadened to appeal to a county-wide audience. The project was placed on the ballot in 1996 for sales tax support at the county level and was defeated. The City of Rifle ~ remains committed to the project and will resubmit it to the voters in the next election. . Inn of the Mountain Gods Mescalero, New Mexico Under a contract with EDA, Dan Guimond evaluated the feasibility of building an additional • 114 rooms and additional banquet and meeting facilities at this executive conference center and resort. The market analysis focused on the potentials of attracting the larger business groups DANIEL R. GUIMOND CONFERENCE' CENTER EXPERIENCE PAGE3 necessary to support the conference facilities. The financial feasibility analysis compared the capital structure of the Inn, with its existing facilities, with two scenarios -optimum conditions at the present facility and with forecast utilization of the expanded facility. Based on our analysis, EDA financed the expansion proposal of the Mescalero Apache Tribe. Community Events Center Glenwood Springs, Colorado ~ This feasibility study evaluated the market for a proposed civic/cultural/convention center for this tourism-oriented Colorado community. The market analysis investigated the market for ~ attracting larger meetings and conventions than could be accommodated by the city's ~ individual hotels. The market for cultural facilities was determined based on an evaluation of • utilization of existing performing spaces in the area and by interviewing arts organizations about their space needs. The demand analysis recommended a 400-seat theater and 20,000 * square foot convention center. The study then evaluated alternative sites, projected operating ~ expenses and revenues, capital costs and funding requirements, and economic impacts. Based ~ on the projected utilization, the demand for meetings was determined to be largely within the capabilities of existing hotel facilities. The city thus chose to pursue more of a community ~ oriented recreation/civic center. • Radisson Hotel • Denver, Colorado ~ Prior to initiating a major renovation of this downtown hotel, the hotel's owners wanted to ~ know if the creation of an exhibit hall could significantly increase the hotel's penetration of the . Denver convention market. Dan Guimond of In Motion was the primary consultant on this ' s current convention market and project. The assignment included an evaluation of Denver ~ compared it to other cities. We also sent a survey to groups holding meetings of a size ~ appropriate to the Radisson Denver asking about facilities needs and exhibit requirements. We • also evaluated comparable hotel properties in Denver and other cities. Our conclusions ' s supporting the proposed exhibit hall facilities were based on projecting the renovated hotel ~ market share with and without the additional facilities and determining increased revenue ~ attributable to the hall. Bicentennial Center Salina, Kansas This study evaluated options for expanding the existing arena and conference facilities in this small Kansas City. Dan Guimond of In Motion was the primary consultant on this project. Our research included analyses of existing utilization and operations; the Kansas meeting and convention market; the Bicentennial Center's potential to capture additional business; operational or facility improvements to increase market penetration and utilization; and existing and potential economic impacts to the City of Salina. Based on the analysis, we recommended against a major capital intensive expansion of the arena and instead recommended improvements to the conference and meeting space and changes in the marketing program contracts. OHN BURCHMORE -CONFERENCE CENTER EXPERIENCE Key Qualifications: ^ Extensive conference center sales and marketing experience ^ Conference center operating experience ^ Conference center development experience ^ Facility management training SPECIFIC PROTECT EXPERIENCE Telluride Conference Center Mr. Burchmore was hired by the Mountain Village Metro District to assist in the Mountain Village, Colorado design, construction and planning for the marketing and operations of this $9.5 million, 23,000 square foot facility. The Conference Center opened in 1999 with over 100 groups representing more than $5 million in lodging revenue. The state of the art facility has many theatrical elements, high ceilings, 50% back of house storage, maintenance, and food and beverage making it extremely efficient and versatile. Mr. Burchmore produced the marketing plans, operation plans, food and beverage contracts, audiovisual service agreements and long-term goals and objectives for the Telluride Conference Center. In 2002 NIr. Burchmore, as Chairman of the Marketing Committee for the Telluride CVB helped coordinate the merger of the Conference Center sales and marketing department with the sales and marketing department of the Telluride Visitor Services which created the new Telluride Convention and Visitor Bureau. Snowmass Conference Center Mr. Burchmore, as business development manager, coordinated the use of an Snowmass Village, Colorado integrated database system for sales and marketing. New software, sales systems and marketing plans for the Center were developed to be more efficient and productive. Detailed market segment analysis was developed to plan for seasonal mountain resort conferences, which are unique to the industry. Sugar Loaf Resort Mr. Burchmore managed the sales and marketing department for this 2,000 acre, Traverse City, MI ski and golf resort with over 25,000 square feet of meeting space. The resort catered primarily to the association market for conference business from Detroit and Lansing. The resort has seasonal similarity to the Colorado market with ski clubs, social groups and SMERF markets being vital to the seasonal nature of the location. Mr. Burchmore introduced the first hospitality software to the resort. He also produced the marketing plans and operational plans for the conference services department managing and set up staff. Oglebay Regarded as the industries most respected education, Mr. Burchmore attended the Facility Management School at Oglebay, WV, provided by The International Association of Assembly Managers (IAAM). General Managers of Convention Centers, Performing Arts Center, Arenas, Stadiums, etc. attend Oglebay to receive the finest education for management of public facilities. Economic ~ Planning Systems Public fiinar,ce Real Estuae Ecoeea;nicc ~~ionxl Eco iionua .. a.:a~ iRe Fc:'icq CONSULTANT TEAM RESUMES • i • • DANIEL R. GUIMOND Economic ~ Planning Systems Pubtic Finnnce Real Estate Economics Regional Economics )and [Ise Po1ie~ Background Mr. Guimond is an economist and planner with 25 years experience in economic and financial analysis and development planning for the public and private sectors. His activities on both land use and transportation-related projects include market and financial analyses, economic development and impact analyses, and implementation and capital improvements programming and financing. Mr. Guimond is a Principal with Economic & Planning Systems, an urban economics firm with offices in Denver, Colorado and Berkeley and Sacramento, California. Experience Public Facilities -Dan Guimond has conducted economic feasibility studies on a wide range of public facilities including conference, convention, and civic centers; theaters and performing arts facilities; recreation centers; indoor and outdoor arenas; and multi-purpose event centers. Each study has addressed the market support, facility utilization, operational costs and revenues, and capital construction financing including the following projects: David Eccles Conference Center and Peery's Egyptian Theater in Ogden, Utah; Garfield County Expo Center in Rifle, Colorado; Community Events Center for Glenwood Springs, Colorado, Bicentennial Center in Salina, Kansas, Civic Center in Cedar City, Utah; Inn of the Mountain Gods in Mecalero, New Mexico; Conference Center in Steamboat Springs, Colorado; Radisson Denver expansion in Denver, Colorado; and Outdoor Education Institute in Uintah County, Utah. Resort Community Development - Mr. Guimond has completed numerous project assignments addressing resort community and economic development issues including resort and recreation development, affordable housing, fiscal balance, retail and commercial development, and public facilities feasibility. Over the last 10 years, he has completed projects for Aspen, Snowmass, Vail, Basalt, Eagle, Glenwood Springs, Telluride, Durango, and Jackson, Wyoming. Economic Development - Mr. Guimond has advised cities, counties, state, and federal agencies on economic development issues, including preparation of economic development plans and strategies, target industry strategies, capital improvement programs, fiscal and econoric impact analyses, and project development feasibility and funding. DEN V E R 730 Seventeenth Street, S~iite 630 Denver, CO 50202-351,1 wwti-.epsys.com B E R K E L E Y SAC R A M E N T O phone: 303 623-3537 ~,~ore: ?10-S4i-9?90 phone: 416-C,49-0010 `z.x: 30>-C:23-99.9 fas~ >-in-R41-d30R zx: 9'.6-,4"-20,'0 DANIEL R. GtIIMOND • ECONOMIC ~ PLANNING SYSTEMS PAGE 2 • • Real Estate Feasibility - Mr. Guimond has completed over 100 real estate market and financial feasibility studies for a wide range of public and private clients at both newly developing and infill revitalization settings including the Denver Tech Center, Lowry, Stapleton, and • Highlands Ranch in the Denver metro area. These studies have addressed residential, office, retail, industrial and mixed use ~ development uses. Housing projects include market rate, tax credit, ~ and subsidized housing projects of all types. Community d Re~-ional Planning -Dan Guimond has extensive ~ experience in land use policy analysis and the preparation of ~ comprehensive plans and capital improvement programs at the local • and regional level. He has been at the forefront of regional growth management efforts including the analysis of alternative urban forms • and preparation of integrated regional growth and transportation plans ~ for metropolitan planning organizations and councils of government. • ~ Retail Analysis - Mr. Guimond has specialized in retail market analysis, including market studies for neighborhood and regional shopping ~ centers, department stores, discounters, and grocery store chains. For ~ the public sector, he has evaluated the impacts of new retail facilities on • the existing retail locations and measured the economic and financial benefits of new developments. r Redevelopment -Dan Guimond has extensive project experience in • large-scale redevelopment planning including the reuse of nine former military bases for civilian uses. His experience includes overall project ~ management, evaluation of reuse potentials, development strategies, developer selection and negotiation, land and facility valuation, • financing, and grants preparation. Employment 1999 -Present Principal, Economic & Planning Systems, Inc. ~ 1997-1999 Principal, In Motion, Inc, • 1993-1997 Vice President, BRW Inc. 1978-1992 Vice President, Hammer Siler, George Associates ~ 1976-1978 Planner, Jefferson County Planning Department • Education M.A., Urban Geography, University of Colorado, 1976 B.A., Political Science, University of Colorado, 1972 • Affiliations American Institute of Certified Planners National Trust for Historic Preservation International Downtown Association • Denver Planning Board, 1992 -present WALTER F. KIESER EC~nOi11a Planning Systems Pu6tic Fin truce Real Estaee Economics Regional Erort o:nics Lurid Use Policy Background Walter Kieser is an urban economist and land use planner who during his 28-year professional career has specialized in applying economic and financial analysis methods to land use planning, real estate development, government organization, and public financing. Mr. Kieser is an expert in managing complex technical analyses and communicating planning, economic and financial concepts in a manner that effectively supports sound land use planning, public policy development, real estate investment decision making, strategic planning, and conflict resolution. His broad-based experience with land use,.. transportation and conservation planning, public/private financing agreements, inter-governmental agreements, infrastructure financing programs, local government reorganization, and real estate development projects combine to provide balanced and pragmatic solutions, ensuring that land use plans can be successfully implemented, infrastructure can be financed, and that real estate projects meet private-sector financial objectives while supporting public policy objectives. Walter Kieser is a founding Partner and Managing Principal of Economic & Planning Systems, Inc., an urban economics consulting firm with offices in Berkeley and Sacramento, California, and Denver, Colorado. Expertise Fiscal and Economic Impact Analysis -Walter Kieser prepared and participated in several hundred fiscal and economic impact analyses on a wide variety of land use plans, development projects, and infrastructure improvements. These quantitative analyses have focused upon determining the cost of growth, policy refinement, and ensuring implementation within the context of land use plans, environmental impact analyses, and initiative ballot measures, + .Public Finance - Mr. Kieser has helped establish public financing for a wide variety of public services and infrastructure projects including • development project-related infrastructure, area-wide capital improvement programs, and specific infrastructure projects. Financing techniques applied include formulation of area-specific and facility-specific impact fees, special tax bonds, and redevelopment tax increment financing. • • • B E R K E L E Y 2501 Ninth Street, Suite 200 Berkeley, CA 94710-251 www.epsys.com phone: 510-841-9190 iaa: 510-547-9205 S A C R A M E N T O D E N V E R phone: 916-649-50,0 phone: 303-523-3557 fps: 9,6-649=070 r<s C3-,7? 9^dA • WALTER Fe KIESER ECONOMIC ~ PLANNING SYSTEMS PAGE2 ~ Financial Negotiations -Walter Kieser prepared numerous feasibility ~ studies and economic analyses and participated in real estate and ~ infrastructure financing negotiations involving public agencies and private participants. These negotiations have resulted in mitigation and tax sharing agreements, development agreements, owner participation ~ agreements, and real estate disposition agreements. • Resource Conservation - Mr. Kieser developed and participated in numerous programs and projects designed to preserve open space and ~ natural habitats, preserve agricultural lands, and ensure productive and ~ sustainable use of natural resources. These programs have creatively • applied regulatory mechanisms, compensatory regulations, and public acquisition techniques. ~ Government Organization -Walter Kieser prepared and participated in • over 50 feasibility studies addressing municipal incorporation, major annexations, special district formations and consolidations, and inter- ~ governmental agreements. These feasibility studies involve preparation of ~ detailed pro forma operational and capital budgets and analysis of impacts • of reorganization upon existing agencies. ~ Land Use and Transportation Planning - Mr. Kieser participated in the ~ preparation of over 50 comprehensive land use and transportation plans ~ for cities and counties, with emphasis upon preparation of demographic and economic forecasts, land use analysis, and developing policies and ~ programs related to resource conservation, public services, and ~ infrastructure. ~ Employment 1983-Present Managing Principal, Economic & Planning Systems, Inc. ~ 1977-1983 Managing Associate, Angus McDonald and Associates ~ 1971-1976 Associate Planner, Sonoma County Planning Department • 1967-1970 U.S. Army (Military Intelligence) ~ Education Bachelor of Arts degree in Environmental Studies and Biology from ~ Sonoma State University in 1974. Completed graduate courses in • economics and public administration at Sonoma State University and the University of California, Berkeley. ~ Affiliations American Planning Association, Member • California Association of Local Agency Formation Commissions, Associate Member ~ International Society for Ecological Economics, Member ~ Friends of the River, Member of the Board of Directors • Yosemite Restoration Trust, Member of the Board and Vice President Lafayette Community Parklands Foundation, Member of the Board and ~ Financial Officer JOHN S. BURCHMORE SUMMARY OF QUALIFICATIONS Throughout my career I have achieved a balance of sales, marketing and management experience to benefit any resort or hospitality oriented, corporation, association, bureau or community. My strengths are primarily marketing and sales oriented. Knowledge and sense of development, political climate, finance and working with various boards and governmental organizations are attributes in addition to my specific job descriptions. I also possess skills in development of events and activities valuable and pertaining to increasing attendance, occupancies and revenues. PROFESSIONAL EXPERIENCE 1997- 2002 Telluride Conference Center Mountain Village, CO Executive Director Managed design, construction and opening of $9.5 million dollar venue, which opened in July of 1999. Facility opened with over 100 groups on the books representing over $5 million in lodging revenue. Responsible for managing a $1.2 million dollar operating, sales and marketing budget. Designed and produced marketing campaign, media buys, collateral design and distribution. Coordinated sales effort for all lodging properties in Telluride in conjunction with community meeting space. 1989-1997 Snowmass Resort Association Snowmass Village, CO Business Development Manager, National Sales Manager Developed sales strategies, database management, and software development and property relations for group sales in resort community with 2500 lodging units and a 35,000 square foot conference facility. Specialized in continuing medical education, association and corporate sales. Primary geographic markets included Midwest, Northeast, West coast and Colorado. 1986-1989 Sugar Loaf Resort Cedar, MI Director of Sales and Marketing Responsible for Managing Conference Sales, Conference Services, Public Relations and Marketing strategies and implementation for 350 unit ski and golf resort with 25,000 square feet of meeting space. 1984-1986 DSI Resort Properties Traverse City, MI Sales Manager Responsible for marketing and sales of new condominium development, residential and second home markets. Opened sales office and developed marketing plan and operations. 1982-1984 Fuller Commercial Brokerage Chicago, IL Market Research Coordinator Responsible for telemarketing, proposal development and database management for commercial office, industrial and retail properties. PO BOX 744 TELLURIDE, CO 81435 PHONE 970-728-7015 • E-MAIL BURCHMORE@TELLURIDE.COM ADDITIONAL PROFESSIONAL ACTIVITIES Telluride, CO Former Member of the Mountain Village Town Council, Past President and Executive Board member and Chairman of the Marketing Committee for Telluride Mountain Village Visitor Services, President of Telluride Society for Jazz. Assisted in managing economic development budget for the Town of Mountain Village. Budget of $920,000 supported cultural events, infrastructure, contributions to non profit organizations and special events As President and Chair of Marketing Committee for the Telluride and Mountain Village Visitor Services, oversaw the development of regional marketing plan and $950,000 regional marketing budget. PROFESSIONAL MEMBERSHIPS 1997 TO PRESENT Local Telluride Air Services Conunittee, Telluride Council fox the Arts and Humanities, Mountain Village Merchants Association, Telluride Regional Youth Issues Team. National IAAM (Int'1 Assn of Assembly Managers), PCMA (Professional Convention Management Assn.), GWSAE (Greater Washington Society of Assn Execs.), CSAE (Colorado Society of Association Execs.), HSMAI Regional CADMO (Colorado Association of Destination Marketing Organizations). Destination Colorado. COMMUNITY ACTIVITIES AND EVENTS Telluride, CO Assisted in management for Town of Mountain Village, the Summer Sunset Concert Series, Mountain F.E.A.T. 10K, Jazz Celebration and Holiday Calendar of events, Aspen, CO Coordinator for Aspen Winternational, World Cup -Opening Ceremonies, Hospitality and Awards Ceremonies. Cedar, MI Promoter National Point Series Mountain Bike Races, Arthritis Foundation Annual Golf Tournament, National Biathlon. EDUCATION 1979-1983 Ripon College Ripon, WI Bachelor ofArtr Degree, Economics 1999-2000 Oglebay School, International Association of Assembly Managers Wheeling, WV Graduate, Public Facility Management School s C. CHRIS CARES AICP RRC ASSOCIATES • 4940 PEARL EAST CIRCLE • BOULDER, COLORADO 80301 • 303/449-6558 • FAX 303/449-6587 Chris possesses a diverse background in public and private planning. A founding partner of RRC Associates, he specializes in practical applications of research techniques including survey research, and statistical and computer analysis for problem solving in city planning, administration, and a variety of business applications. His research and recommendations have helped to shape both the design and marketing strategies of major resorts and other developer clients, and he has coordinated the planning and public processing of numerous large resort and mixed-use projects. Market feasibility studies and housing needs assessments are a particular area of specialization. Chris has also drafted comprehensive plans, zoning ordinances, growth management plans, capital improvements programs, and related regulations for towns and cities of various sizes. EDUCATION Master of City Planning Harvard University, 1975 Bachelor of Arts, Political Science University of Rochester, 1972 University of Michigan, 1971 Boulder Economic Base Study (1994) Boulder, CO Telluride Growth Study (1995) Telluride, CO Telluride Master Plan (1986) Telluride, CO PROFESSIONAL EXPERIENCE AND REPRESENTATIVE PROJECTS 1983 to PRINCIPAL present RRC ASSOCIATES (ROSALL REMMEN CARES) Principal-in-charge of.• Town of Vail/Nail Associates Joint Task Force Facilitation-Vail, CO Girdwood, Alaska Land Use Regulations Update County Assessments concerning housing and transportation for Eagle, Grand, Gunnison, Routt, Summit, San Miguel, Pitkin, Garfield (CO), and Blaine (ID) counties; City of Carson City, NV; City of Pueblo, CO; Town of Avon, CO Public participation processes for a variety of communities and situations including Broomfield, Avon, Vail, Breckenridge, Pueblo, and Frisco, CO Vail Commons (City Market) Public Private Partnerships (1995/96) Arrowhead At Vail Master Planning and Public Processing (1978 to present) Edwards, CO Vail/Beaver Creek Winter Visitor Research (1978 to present) Vail, CO Cedar Rapids, Iowa Tourism Opportunities Study (1996) Crested Butte Winter and Summer Research (1990 to present) Mt. Crested Butte, CO Copper Mountain Winter Research (1987 to present) Copper Mountain, CO Rio Grande County Master Plan Rio Grande County, CO Colorado Ski Country USA Research Programs (1990 to present) Colorado Tourism Board Research Studies (1991 to 1993) Upper Blue River Master Plan (1995) Breckenridge, CO Pueblo Tourism Base Study (1993) (cont'd) C. CHRIS CARES AICP RRC ASSOCIATES • 4940 PEARL EAST CIRCLE • BOULDER, COLORADO 80301 • 303/449-6558 • FAX 303/449-6587 PROFESSIONAL EXPERIENCE AND REPRESENTATIVE PROJECTS (cont'd) 1981 ASSOCIATE Gage Davis Associates -Boulder, CO Associate in charge of research studies for major destination resorts in Colorado and Utah. 1979 PLANNER Gage Davis Associates -Boulder, CO Project manager for a number of resort development projects. 1976 PLANNER City of Boulder -Boulder, CO 1975 PLANNER Lincoln-Uinta Counties Planning Office Kemmerer, WY 1974 RESEARCH ASSISTANT Harvard University 1973 GEOGRAPHY INSTRUCTOR Plymouth, England PROFESSIONAL ORGANIZATIONS American Planning Association AICP certified Travel and Tourism Research Association Treasurer of local chapter PROFESSIONAL TRAVEL European Ski Area Study Tour, 1982 OTHER EXPERIENCE INSTRUCTOR College of Environmental Design University of Colorado, 1982 GUEST LECTURER • University of Wisconsin Extension Program • National, state and local conferences and seminars M E L I C K ASS O C I A T E S I N C _. RICHARD P._ MELICK_, JR. !PRESIDENT & PRINCIPAL Richard (Chip) Melick, Jr. founded Melick Associates, Inc., an architecture, planning and interior design firm in 1994.. Mr. Melick has over 22 years of experience in the design and management of 'resort and hospitality projects such as exhibit and conference centers, hotels, spas and restaurants in `mountain communities throughout the western United States. Mr. Melick is currently designing the 'renovation and expansion of the Manor Vail Lodge and the Lion Square Lodge in Vail, CO. RELEVANT Snake River Lodge and Spa, Teton Village, Wyoming PROJECT Red Sky Ranch, Vail, CO EXPERIENCE Tenaya Lodge at Yosemite, Yosemite, CA Snake River Lodge & Spa Penthouses, Teton Village, Wyoming The Warwick Hotel, Denver, QO Lionsquare Lodge, Vail, CO Manor Vail Lodge, Vail, CO Rosario Resort, Orcas Island, WA The Charter at Beaver Creek, Beaver Creek, CO Keystone Exhibit Hall, Keystone; CO Keystone Conference Center, Keystone, CO PROFESSIONAL 1994 -Present -Melick Associates, Inc., Denver, CO 'EXPERIENCE Ig8o-Igg2 -ARC Rehab, Founder, Chicago, IL; Symmes, Maini & McKee, Cambridge, MA; Ahearn-Sckopfer Associates, Boston, MA; Jung Brannen i.. _ ._. __ Associates, Boston,-MA; Mi'cha'el Barber Architecture,. Denver, C0 ` ~ ~~ 'EDUCATIO'N _ Bachelor of Archiuciure,~ Ig8r ~~~ Illinois Institute of Tec)7no1'ogy, ;Chicago, IL :REGISTRA710N Colorado, Massachusetts, Texas,:Wyoming, Washington National Council ofArchitectural Registration Boards (NCARB) ' ~~PROFESSIONAL American Institute of Archite cgs' _AFFILIATIONS Colorado Hotel & LodgingAssociation Denver Metro Hotel Association' National Trust for Historic Preservation National Ski Areas Association: Architecture Design Review BoarB, Keystone Resort (Ralcorp) Igg4-2000 (RECOGNITIONS Igg6 The Denver Business Journal '. Number Z Fastest Growing Company in Denver Iggg Vance Kirkland Studio Addition and Renovation, Denver Merit Award, Association Builders and Contractors 2000 Vance Kirkland Studio Addition and Renovation, Denver Ann Love Award, Historic Denver, Inc. 2000 Keystone Exhibit Ha11, Keystone Project of the Year Under .$Z Million Associated General Contractors of Colorado 200o Riveria Casino, Blackhawk Project of the Year SJ-:3 3/illion Associated General Contractors of Colorado *Associated with Others' S~~ CLARK ATKINSON DIVISION MANAGER EDUCATION Massachusetts Institute of Technology 1991 • M.S. Real Estate Development Kansas State University 1986 • B.S. Civil Engineering, Honors Program EXPERIENCE • Sundeck Restaurant • Grand Valley Surgical Center • Austria Haus • Edwards Village Center • Edwards Office Park • Village Townhomes I & II • Lodge at Vail, Cucina & International Wing • Eagle Airport Terminal • Bear Paw Lodge • Mtn. Village Apartments • Katie Reid Project • Lake Creek Apartments • Aspen Base Operation • Alpine Club & Spa • Aspen Smallworks • Aspen Center for Physics • Myatt Gallery Terrace • Eagle County Justice Ctr Annex • 1831 Chestnut Street 23,000 SF National award-winning project built in 8 months at 11,200' 33,000 SF State-of-the-art surgical center 74,000 SF Fast-track interval ownership club, hotel and retail 94,000 SF Commercial retail village 80,000 SF Office park 165,000 SF (47) unit Town homes over structural parking 45,000 SF Five-star hole! and restaurant addition 35,000 SF National award-winning project designed/built in 5'/ months. 182,000 SF (54) unit "Parkitechture" condominiums over structural parking 110,000 SF (104) unit multi-family and related site improvements on 9 acres, 22,000 SF Mixed-use office, retail, housing with historical restoration 300,000 SF (272) unit multi-family and site improvements on 26 acres. 12,000 SF FBO terminal at the Aspen Airport 84,000 SF Mixed-use ski lodge, private club, retail and condominiums. 4,500 SF Hi-tech office for Sun Microsystems Chief Technical Officer 22,000 SF "Think Tank" for theoretical physicists 11,000 SF National award-winning project 12,000 SF Design-build courthouse, probation services 82,000 SF 11-story historical rehabilitation COMMUNITY ACTIVITY: • National Association of Industrial & Office Properties (NAIOP) • Monument Presbyterian Church: Education Teacher, Building Committee Chairman • Mesa County Leadership Class INTERESTS: Stone Sculpting & Bicycling REFERENCES: • Jim Elwood -President, Aspen-Pitkin County Airport (970) 920-5384 x 851 • Ed Sadler -Asst. City Manager, City of Aspen (970) 920-5085 • Gordon Pierce -Resort Design Associates International (415) 392-4433 • .Larry Yaw -Cottle Graybeal Yaw Architects (970) 927-4925 21 Years of Construction Exaerience Economic Planning Systems Puh?ic ~ir:nrice Kent Estn.fc Fro; ^nr. cs Regiorai Econo;nics i.nrv r. C<~> Policy ~ REFERENCES • • REFERENCES EPS Dawn Ibis Executive Director, Telluride Visitor Services Telluride Commercial and Accommodations Study 970/ 728-3041 x 300 Leslie Klusmire Former Glenwood Springs Planning Director 406/ 782-4719 Glenwood Springs Community Event Center Jon Schler Colorado Initiatives University of Colorado at Denver Grand Junction, Colorado 970/248-7310 Garfield County Expo Center Ann Millner Vice President for Community Partnerships Weber State University 801/ 626-6341 David Eccles Conference Center and Ferry's Egyptian Theater Larry Manning Director of Planning & Historic Preservation City of Cripple Creek 719/ 689-3316 Cripple Creek Special Events Center ALDER CREEK CORPORATION John Enghauser, President Meetings Database Institute 847/803-6341 Rick Houston General Manager -Franz Klammer Lodge President -Telluride Convention & Visitor Bureau 970/728-7101 Mary Harris General Manager -Mountain Chalet Board Member - Snowmass Resort Assoc. 970/ 923-3900 MELICK ASSOCIATES Bob McCleary - GM Manor Vail Lodge 970/476-5651 Jack Hunn - VP Construction Vail Resorts Development Company 970/845-2355 Bill Anderson - GM Lionsquare Lodge 970/476-2281 RRC ASSOCIATES Harry Frampton, President East West Partners 970/ 845-9200 Ron McIntyre, Director North Lake Tahoe Resort Association 530/581-8735 Bill Jensen Chief Operating Officer -Vail Mountain Vail Resorts 970/ 479-3020 SHAW CONSTRUCTION Jim Elwood President, Aspen-Pitkin County Airport 970/ 920-5384 x 851 Ed Sadler Asst. City Manager, City of Aspen 970/ 920-5085 Gordon Pierce Resort Design Associates International 415/ 392-4433 1 RESPONSE TO REQUEST FOR PROPOSALS DEVELOPMENT OF A ' MARKET ANALYSIS AND BUSINESS PLAN FOR A CONFERENCE CENTER ' SUBMITTED TO: THE TOWN OF VAIL~ COLORADO 1 ' July 3, 2003 Submitted by: C.H. 7ohnson Consulting, Inc. Architectural Resource Consultants, Inc. Conventional Wisdom Corp Robert S. Benton Associates TABLE OF CONTENTS 1) 2) 3) 4) 5) SUBMITTAL LETTER TEAM BACKGROUND AND STAFF SCOPE OF SERVICES SCHEDULE AND FEE PROPOSAL TEAM MATERIALS C.H. JOHNSON CONSULTING, INC. EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING July 3, 2003 Russell Forrest Director of Community Development Town of Vail 75 Frontage Rd Vail, Colorado 81657 RE: Request for Proposal Market Analysis and Business Plan for Conference Center Dear Mr. Forrest: C.H. Johnson Consulting, Inc. (Johnson Consulting), in association with Architectural Resource Consultants, Inc. (ARC), Conventional Wisdom Corp (Conventional Wisdom), and Robert S. Benton Associates (RSBA), are pleased to submit this proposal to the Town of Vail (TOV) to conduct a market analysis and prepare a business plan for a conference center project. Johnson Consulting is a real estate and hospitality consulting firm with specific expertise in the analysis and development of conference centers, convention centers, and hotels in high-profile resort settings. In addition, many of our projects have been ' specific elements within mixed-use districts, which ties in quite well with the anticipated TOV project. Among Johnson Consulting's current projects is a market analysis and development concept for a proposed conference center/hotel project in ' the suburban Denver market; ahotel/conference center/resort project in Palm Springs; ahigh-end conference center expansion project in Bellevue, WA; a business plan for Purdue University's suburban Chicago conference center, and the market ' analysis of new university-affiliated conference center in the tourism-rich environment of Daytona Beach, Florida. Our firm is noted for our expertise in working with cities and towns in attracting developers to public/private ' partnerships. ' Our team has extensive previous experience and is nationally recognized as one of the most comprehensive advisors to convention and conference centers. We have also earned a reputation for quality, integrity, and success among operators, developers, ' and within the public finance community. ARC is located in Boulder and provides cost estimating, scheduling, and other control services for construction projects. The firm has delivered value on billions of ' dollars of projects worldwide. The firm s specialty is cost containment and schedule compliance on construction projects with tight requirements. ARC has extensive Six East Monroe St. • 51" Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' C.H. JOHNSON CONSULTING, INC. EXPERTS IN CONVENZION, SPORT AND REAL ESTATE CONSULTING experience in Vail, having worked on the Hubsite Conference Center and the Vail ' Town Center, among others. Conventional Wisdom is a specialized firm that works with market and financial ' consultants as well as architects. David O'Neal, former Executive Director of the Orange County (FL) Convention Center, leads the firm. His staff includes architects and urban planning specialists. The firm helps Johnson Consulting address site ' location analyses, physical program studies, operational strategies, and development of cost estimates. RSBA, located in Parker, Colorado, provides real estate consulting and appraisal services to developers, investors and lending institutions of hospitality properties. The firm co-sponsors the Rocky Mountain Lodging Report, a monthly lodging survey ' summarizing market conditions in the states of Colorado, Utah, New Mexico and Wyoming. The staff of Johnson Consulting has extensive experience with projects that involve public participation, specialized taxing districts, and 63-20 financings. As I am a member of the International Society of Hospitality Consultants (ISHC), our firm abides by their code of ethics and standards of care. The hotel and financing communities are very willing to accept our reports in bond offerings and our advice is respected by city governments. In addition, our staff includes two former employees for major municipal governments, which adds considerable ability in evaluating the role and capacity of government to meet the direct and ancillary financial commitments associated with a project of this nature. Our complete response to the RFP is attached. We strongly believe our team is your best choice to perform the requested analysis. If you have any questions about our proposal, please contact me at 312-444-1031. We truly look forward to the opportunity of serving you. Sincerely yours, C.H. JOHNSON CONSULTING, INC. '~ ~~~~ ~ ~ ~ CHARLES H. JOHNSON IV PRESIDENT Six East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ii C ii Town of Vail Page 1 Conference Center Development TEAM BACKGROUND AND EXPERIENCE Johnson Consulting has worked on numerous projects that are similar to the scope in the RFP. These engagements include planning, market and feasibility studies, tax projections, operational reviews, financial plans, and selection of and negotiation with developers. The majority of this work focused on convention/conference centers, hotels, and sports facilities and their related land uses; however, these engagements also involved a variety of other land uses, including fairgrounds, performing arts facilities, retail, and office developments. Our experience in the Southwest region of the U.S. and with resort communities provides the Town of Vail with the knowledge of what other similarly situated towns have done to develop facilities that are meaningful additions to their communities. The majority of our clients are public sector agencies, although we perform studies for a number of private developers and quasi-governmental organizations such as convention and visitor bureaus. With both public and private sector clients, we deliver high-quality work in a timely manner. Numerous repeat engagements with clients in Osceola County, FL, San Juan, Puerto Rico, Austin, TX, Jackson, MS, Salem, OR, the Commonwealth of Massachusetts, among many others, are evidence of our reputation for quality and client satisfaction. ARC is located in Boulder and provides cost estimating, scheduling, and other control services for construction projects. The firm has delivered value on billions of dollars of projects worldwide. The firm s specialty is cost containment and schedule compliance on construction projects with tight requirements. Their extensive experience in Vail and other parts of Colorado will prove invaluable for this project. Conventional Wisdom, formed in 1997 in Orlando, Florida, provides specialized programming, management, and operations consulting services to the owners, operators, planners, designers, and builders of convention centers, conference centers, and other assembly facilities. Conventional Wisdoms founders, David O'Neal and Rick Schmidt, each have 20 years of experience in the management, operation, planning, design, and construction of public assembly facilities throughout North America and abroad. Their staff includes former convention managers, marketers, and registered architects, with conference center and hotel planning experience. Robert S. Benson Associates provides real estate consulting and appraisal services to developers, investors, and lending institutions of hospitality properties. The firm co-sponsors the Rocky Mountain Lodging Report, a monthly lodging survey summarizing market conditions in the states of Colorado, Utah, New Mexico and Wyoming. The firm specializes in market and economic feasibility analysis for 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com Town of Vail Page 2 Conference Center Development 1 n hotels and resorts, real estate appraisal of a variety of land uses, hotel supply and demand analysis, and site selection analysis. Firm materials, including resumes and sample project sheet highlights are provided in Section 5 of this submittal. KEY PERSONNEL Our proposed Consulting Team provides the precise mix of skills and experience needed to perform the services outlined in the RFP. We commit that each member of the Consulting Team will be fully involved in the project and will perform the research and analytical work necessary to complete the project. The day-to-day involvement of our senior staff will assure that the work on your project will be of the highest possible quality. Johnson Consulting ^ Charles H. Johnson, ISHC, is a nationally recognized consultant with over 20 years of experience in the conference/convention, hotel, tourism, and general real estate consulting fields. Prior to forming Johnson Consulting, he was National Director of KPMG Peat Marwick's Convention, Sports and Leisure Consulting practice. He worked with Laventhol and Horwath's Hospitality division and also worked for two real estate development firms. Johnson has worked on over 600 consulting assignments in the U.S. and abroad. His prior experience includes conference/hotel studies in Bellevue, WA; Palm Springs, CA, Ft. Worth; TX: Austin, TX; Portsmouth, VA; and Boston, MA. Johnson will be the Senior Project Member for this project. His resume is included in Section 5. His experience performing market studies and business plans for conference and meeting facilities ideally suits him to lead this assignment. The following is a list of similar projects completed by Charlie Johnson: Conference Center and Hotel -Suburban Denver, Colorado Austin Convention Center and Headquarters Hotel -Texas Bangkok, Thailand Hotel and Conference Center Concord Resort Conference Center -New York Denver Convention Center Hotel -Colorado Embry Riddle Aeronautical University Conference Center -Florida Jackson State Conference Center -Mississippi Jackson Telecommunications and Technology Conference Center -Mississippi Kentucky Fair and Expo Center Conference Center and Hotel -Louisville Melbourne, Florida -Conference Center Feasibility at Airport Meydenbauer Center -Bellevue, Washington 6 East Monroe St. • 5t'' Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Conference Center Development Page 3 Monona Terrace Convention/Conference Center -Madison, Wisconsin ' Overland Park Convention Center and Hotel -Kansas Peoria Castle Lodge and Conference Center- Illinois Portsmouth, Virginia -Renaissance Hotel and Waterside Conference Center ' Purdue University -Calumet Conference Center -Indiana Salem Conference Center and Hotel -Oregon San Moritz, Switzerland Conference Center ' South San Francisco Conference Center -California Southwest Texas University Conference Center- San Marcos Wausau Conference Center and Hotel -Wisconsin Other Johnson Consulting Staff Members ^ Matthew Summy is an economic development, operational, and public policy consultant with experience in public sector management, organizational development, and program evaluation. Prior to joining Johnson Consulting, Summy was the Senior Vice President and Chief of Staff for the New York City Housing Development Corporation (HDC). At the HDC, he managed relationships with investment banks, developers, and public sector officials and worked on program development and implementation. Summy also has a background in program evaluation and policy development and has worked as an operations analyst in the New York City Mayor's Office of Operations. He graduated from New York University with an MPA in Management and Policy. Recently, he completed the feasibility study for the development of a conference center at Jackson State University and an operational and strategic review of the Greater Cincinnati Convention and Visitors Bureau. He is currently working on a new business plan for Purdue University Calumet's conference center. The objective is to reposition the facility and revamp the operating structure in order to more effectively compete in the regional conferencing market. ^ Rob Hunden offers broad experience in managing the implementation of public and private projects. Prior to joining Johnson Consulting, he worked for the Indianapolis Bond Bank, Indianapolis' economic development finance authority. Projects in Indianapolis included the Indiana Convention Center expansion, financing for the RCA Dome renovation and Conseco Fieldhouse construction, and management of the pre-development process for the Indianapolis Downtown Marriott convention hotel, among many community development projects. Recently, he has been working on a development and financing package for a convention center headquarters hotel in Ft. Worth, TX, and a hotel in Burr Ridge, IL. He is also the engagement manager for the firms work for Kentucky's Tourism Development Authority. For that assignment, he is working on the Galt 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 4 Conference Center Development [~ ii C C House Hotel renovation, a Hilton hotel and conference center at the Kentucky Fair and Expo Center, and a new Wyndham boutique hotel. ^ David Stone provides market and financial analysis, and has an accounting background in the real estate industry. He received his MBA in Finance, Economics, and Strategic Decision Making from Loyola University. He was the firm s engagement manager for the City of Palm Springs in its analysis for a resort including a Conrad Hilton, an 18-hole golf course, and a major spa. He has worked on numerous conference center projects, and recently prepared an analysis of a hotel/conference center in Montego Bay, Jamaica, a university conference center project for Embry Riddle University, and a hotel/conference center project for the Melbourne, Florida International Airport. ^ Ayu Listiowati holds a Masters Degree in Real Estate from Cornell University. Her graduate work focused on real estate development and market and financial analysis. Prior to Cornell, she earned a Professional Degree in Architecture from University of Indonesia and had work experience in architecture and real estate planning and design. At Johnson Consulting, she specializes in market and financial analysis, room tax analysis, and economic and fiscal impact analysis for high impact real estate projects such as hotels, conference centers, and tourism promotion agencies. She recently provided analysis for a convention center/hotel development in Overland Park, KS, developed a comprehensive real estate planning model for a convention center and hotel complex in San Juan, Puerto Rico, and developed financial models and City or County Council reports used in the developer selection process in San Juan, Overland Park, and Ft. Worth. She is currently working on room tax projections for atax-exempt financed, integrated hotel and convention center project in central Florida. ^ Todd Gruen received his JD from Chicago-Kent College of Law. Gruen has specialized knowledge of entertainment facility development and has written several publications that cover various segments of the industry, including Inside the Ownership of Pro Sports, Naming Rights Deals, and Legal Issues in Sports Sponsorship. Prior to joining Johnson Consulting, he was the Director of Business and Legal Services for Team Marketing Report, a sports marketing trade publication company. Since joining Johnson Consulting, he is providing analysis for the Bellevue Convention Center in Bellevue, WA, analysis for the viability of an exhibition and sports district in Beijing, China, the development of a conference center/hotel in Melbourne, FL. He is currently working on a feasibility study for aminor-league hockey arena and soccer complex in Richmond, VA, a performing arts center in Arlington Heights, IL, and is reviewing drafts of development and management agreements for a conference center/hotel in Salem, OR. 6 East Monroe St. • 5`h Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 5 Conference Center Development n I r ARC ^ Christopher Squadra, Principal in Charge at ARC, is the founding principal of ARC, and one of Colorado's proven leaders in providing project controls. His value added is evidenced by his lengthy track record of successfully completed projects and extremely satisfied client base. His expertise includes owner s budget preparation, scheduling, budget tracking, cost estimating, contract law, claims avoidance, procurement, proformas, and cash flows. He has extensive experience in Vail, having worked on Hubsite Conference Center, Vail Town Center, Donovan Park & Pavilion, Middle Creek Village, and multiple parking alternatives. ^ Mark Huff, Project Manager at ARC, has experience that spans seven continents and over two decades of diverse and challenging project control situations. His commitment to excellence and on time and under budget performance goes unmatched in ARC's experience. His expertise includes owner's budget preparation, scheduling, budget tracking, cost estimating, contract law, QA\QC materials testing, and claims avoidance. His experience in Vail includes the firms work on the Hubsite Conference Center and multiple parking alternatives. Other experience includes the Village At Avon, amixed-use retail project in Avon, CO and the Lodge Casino, a major hotel and gaming facility in Black Hawk, CO. Conventional Wisdom ^ David O'Neal, Chairman of Conventional Wisdom Corp. and the former Executive Director of the Orange County (FL) Convention Center, has extensive experience in assembly facility programming, design, development, construction, marketing, event servicing, and operations. He helps owners and managers of facilities develop operational design criteria, reviews management practices, and analyzes facility markets. O'Neal's recent or current projects include planning for the Phoenix Civic Plaza, Wisconsin Center District in Milwaukee, the San Diego Convention Center, the new Tacoma Convention Center, and the resort hotel and convention center in Osceola County, FL. ^ Richard Schmidt, President of Conventional Wisdom Corp., is a registered architect with over 20 years of specific experience in the areas of conceptual planning, programming, development of regional impact studies, budget and schedule analysis, and feasibility studies. He has served in the roles of program manager, project manager, project planner, senior architect, and project architect for convention centers, airports, office buildings, commercial and educational buildings, high-rise parking structures, and residential developments. He served as a consultant for the new suburban 6 East Monroe St. • 5~h Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ~i Town of Vail Conference Center Development Page 6 convention center in Sandy, UT, and is working on conference center projects in Peoria, IL, Overland Park, KS, and Tacoma, WA. ^ Jimmy Ward had 23 years of experience with the architectural firm Thompson, Ventulett, Stainback & Associates (TVS&A), of Atlanta, Georgia. While at TVS&A, his primary focus was on the design and development of convention and meeting facilities. He was on the design team for Phase I of the Georgia World Congress Center in Atlanta, as well as its Phase II and III expansions. His master-planning and design efforts have shaped convention centers in Miami Beach, Ft. Lauderdale, Philadelphia, and Orlando. Ward has extensive master-planning and design experience with hotel, retail, and other mixed use commercial facilities. Robert S. Benson Associates, Inc. ^ Robert S. Benson, ISHC, leads the firm and has extensive experience in real estate consulting and appraisal services to developers, investors, and lending institutions of hospitality properties, including hotels, resorts, and conference centers. Clients have included AmFac Parks & Resorts, Denver, CO; Aurora Economic Development Council, Aurora, CO; Bass Hotels & Resorts, Atlanta, GA; Hilton Hotels Corporation, Beverly Hills, CA; East- West Resorts, Edwards CO; Sitzman-Mitchell & CO., Fort Collins, CO; and Wyndham Hotels & Resorts. He is a member of the Colorado Hotel & Lodging Association and received his MBA degree from the University of Denver, specializing in Real Estate -Finance. 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 1 Conference Center Development ' UNDERSTANDING OF ASSIGNMENT The Town of Vail (TOV) is seeking consultants to provide a market and business ' plan analysis regarding the development of a Conference Center project. Specifically, the TOV is requesting atwo-part analysis: ' 1) A market study to independently verify the results of a previous Conference Center feasibility study, and 2) Development of a business plan for the proposed Conference Center. The TOV has designated a site adjacent to the 1,100-space Lionshead parking structure as the Conference Center site. The TOV envisions aworld-class, 100,000 ' square foot conference center, with no less than a 35,000 square foot ballroom, and associated meeting rooms. Additional mixed-use elements, such as commercial space, may also be considered. In November 2002, the voters approved a dedicated ' revenue source (lodging and sales tax) to facilitate the development of the Conference Center. The proponents of the project completed a market analysis in 2002 and the TOV is now seeking to verify those findings with an independent ' analysis for the prospective Conference Center. The TOV has established the following goals for the project: A. To provide a Conference Center that will allow groups of up to 3,000 people to have events in the facility, and boost year-round visits to Vail. B. A financially sound Conference Center with a well developed business plan. C. A Conference Center achieving the highest possible design and ' environmental standards in all aspects of the facility, its operation, and maintenance. D. A requirement for at least a minimum LEEDs certification. ' E. A design maximizing the site utilization without compromising the above requirements. F. Design and construction of the facility that muiimizes the long-term cost of operation and maintenance, while adhering to the high standards expected in Vail. 6 East Monroe St. • 5`" Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 2 Conference Center Development SCOPE OF SERVICES For this project, we will perform our work in two tasks, as summarized below. A detailed methodology for completing the analysis and business plan appears after this summary. We commit to providing the entire scope of work as specified in the RFP, however, as certain analytical elements requested can proceed concurrently, ' we have reordered the scope in order to achieve the most efficient (and therefore cost-effective) approach. Phase I: Market Analysis. In this task, we will conduct an independent analysis of the market potential for aworld-class conference center in Vail. For this project, market analysis requires several analytical elements: ^ Local market lodging capacity. ^ Analysis and evaluation of mountain-based conference facilities in order to demonstrate the potential performance of such a facility in Vail. ^ Surveys of meeting planners to measure interest in the proposed center and evaluate emerging design considerations that could be incorporated to create distinction and demand for the facility. ^ Determination of seasonal demand and a review of whether or not Vail has an adequate "bed base" and transportation infrastructure to meet demand. ^ Analysis of economic and fiscal impacts (room nights, lodging sales, retail ' sales, food and beverage sales) and the impact of a public conference center on existing/planned private conferencing facilities and restaurants. ^ Recommendations as to whether the conference center should be of a ' certain size so as not to compete with existing properties and to target incremental business. ^ Analysis of Vail's competitive advantages and disadvantages for larger ' conferences. ^ Profile of conference centers that have ceased operations and determination ' as to what lessons can be learned and what strategies should be avoided. In addition, centers that break even will be profiled in order to illustrate advantageous business strategies that could be replicated in Vail. ' Conference center industry overview, including growth in the number of centers on an annual basis. ' Strategies for increasing room nights and visitation to Vail (without impacting hotel rates) in the event a conference center is not built (e.g. festivals, marketing, other special events). 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 3 Conference Center Development Phase II: Development of a Business Plan - If warranted based on the findings in ' the market analysis, during this phase our team will prepare a business and operating plan for the Conference Center. Included in this effort are the following items: ^ Proposed physical plan and confirmation of spatial requirements (in relation to site). ' Refined capital budget for construction of the center, including additional parking on the Lionshead structure and access for Vail International. ' Specific personnel requirements, including security. ^ Twenty year operational budget for the center. t Capital replacement program, including upgrade options. ^ Strategies for addressing operating deficits as well as tax revenue collections. ^ Hotel booking requirements and policies. ^ Proposed marketing plans, including costs. ^ Analysis of incremental costs to the TOV to supports the conference center, including transportation, security, and other in-kind or ancillary services (sanitation, etc). ^ Analysis of the financial impacts to the TOV in the event the conference center fails to achieve operating/performance projections and must be abandoned, including a review of alternative uses. ^ Analysis of bond payments and revenue sources for the life of the bonds, including recommendations on bond terms and maturities. APPROACH AND METHODOLOGY The questions posed above are very good and are reflective of very diverse and valid concerns. The Town, existing hotel properties, and tourism concerns all want a successful project and want to hedge any risks. Our team offers former city economic development staff, facility operators, municipal finance expertise, construction cost and design expertise, hotel consultants, and tourism consultants. We fully appreciate the varied concerns and will work carefully to address each of them comprehensively. 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 4 Conference Center Development PHASE 1: MARKET ANALYSIS Task 1.1 Project Orientation and Field Work ' Appropriate members of the consulting team will meet with client representatives to confirm objectives of the study, develop clear lines of communication, review ' project methodology, and conduct initial fieldwork. Among the tasks to perform during this step are: ^ Hold a workshop with client representatives to review the various projects ' that our team has worked on and are familiar with, and discuss their attributes, as well applicability to Vail. ^ Review the prior analysis and obtain reactions to it. ^ Tour the site, Vail's central business district, and other hotel/meeting projects in the area (including Summit County, Snowmass, Winter Park, etc.). ^ Gather and analyze background information related to the project, t including the previous report completed prior to the November 2002 election. ^ Obtain information and data from client representatives, including ' operating data. ^ Identify appropriate contacts and resources necessary to ensure complete ' review and assessment of issues and specific data. ^ Inventory the meetings and hotel offerings in the area. ' Hold various meetings described in the tasks below. Task 1.2 Economic and Demographic Analysis ii Johnson Consulting will evaluate the TOV's position in the state and regional meetings market and assess the ability of the area to penetrate the convention, tradeshow, and general tourism markets. This analysis will provide a realistic assessment of Vail's strengths, weaknesses, opportunities, and threats (SWOT). Among the data gathered and analyzed will be: ^ Population and demographic trends. ^ Review of the real estate and development patterns in Vail that may affect the performance of the perspective facility. ^ Income and employment trends, including any major employers expected to enter or leave the market. 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com 1 ' Town of Vai! Page 5 Conference Center Development ^ Hotel supply and trends, including products new or proposed product ' additions. ^ Air service. ' Transportation and access. ^ Convention and tourism marketing resources. 1 Portfolio of facilities, including hotel meeting space, banquet capacity, conference centers, theaters, arenas, stadiums, and fairgrounds. ' Fair share of event demand and relative penetration of demand compared to eers p . ^ Interpretation of why Vail's penetration may or may not achieve or exceed ' its fair share of demand. ^ The history and expected future trends of tourism in Vail. ' Task 1.3 Comparable and Competitive Product Review The Consulting Team will compile data on facilities in mountain-based or resort- ' oriented environments that feature exhibition and conference facilities of the size that may be appropriate for Vail. This information will provide perspective on the various strengths, weaknesses, and attributes of their respective convention and ' trade show facilities, market characteristics, and competitive position. During this task, the Consulting Team will also evaluate the financial/ demand ' performance of conference center facilities that have not succeeded, including an exploration of physical, environmental, marketing, and other factors that inhibited performance. Included in this review will be a pointed evaluation of the ' characteristics that Vail may exhibit that are similar to the markets in which these products were unable to develop successful conferencing business. ' We will also explore the adaptive re-use options that were adopted for projects that may have been decommissioned. ' Characteristics and Attributes to be evaluated include: ^ Conference center size, quality, flexibility, and appeal. ' Conference center expansion plans. ^ Existing and proposed local market and nearby hotel rooms. ' Hotel supply and performance (pre- and post- facility development). ^ Air service levels and other transportation mechanisms. ' Comparative demographic characteristics. ' 6 East Monroe St. • 5"' Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjacom • info@chjc.com Town of Vail Conference Center Development Page 6 ^ Unique destination appeal characteristics (mountain, ocean, arts and culture, ' etc.). ^ Tourism attractions. ^ Seasonal tourism and visitation demand. ^ Marketing resources. ' Other factors that will determine the level of demand in the community. Johnson Consulting will work with client representatives to select appropriate ' facilities and markets for detailed analysis. The comparable facility information will be used to estimate demand for a potential facility in Vail, as well as provide counsel to the TOV with regard to development concepts and strategy. Task 1.4 Conference Center Market Analysis Johnson Consulting will assess industry trends affecting the convention center and hotel markets nationwide, regionally, and in Vail. Johnson Consulting will conduct the following research tasks: ' An analysis of overall conference and meeting show market trends, reflecting new or planned facilities and expansions. ^ An analysis of primary and secondary sources of information such as Convention and Visitor Bureau research files, Meeting and Convention Magazine, Tradeshow Week, Center for Exhibition Industry Research data, ' and other publications and sources. We will also use our extensive comparable facility experience to determine and document industry trends, such as growth, selection criteria, technology, and overall industry health ' that will affect this project. ^ Interviews with management of conference centers, such as Benchmark, ' Dolce, Harrison, and others. ^ Analysis of the competitive supply of conference and meeting space in the region, in relation to the demand potential. ' Comparable project experience for projects in similar communities. ^ Interviews with hotel general managers, representatives of the CVB, the Chamber of Commerce, and other parties involved in the proposed development. ^ Most importantly, the Consulting Team will interpret its prior experience in similar markets. This experience provides us with a solid understanding of key trends for facilities in this market size and provides a basis for developing along-term vision for the project. 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 7 Conference Center Development The market analysis will be geared specifically to issues relevant to the TOV and its implications will be clearly explained. Task 1.5 Potential Users Survey/Interviews The Consulting Team will review data that has been compiled regarding potential users and test those sources. We will conduct interview/surveys of meeting planners and potential users of the proposed facility. Our team has extensive experience interviewing/ surveying meeting planners and has recently completed survey exercises for American Airlines Center, the Metro Detroit Convention and ' Visitors Bureau, and numerous other clients. In addition, Johnson Consulting is located in Chicago, which provides access to the one of the nations highest concentrations of meeting planners for corporations and associations. As such, we are able to conduct focus groups with meeting planners in an extremely cost- effective fashion. Among the topics to be explored durmg this process: ^ Critical criteria when deciding on event location (access, climate, technology, cost, etc.). ^ Emerging facility features that can be used to create a distinctive for the product, ^ P ti i t rogramma c requ remen s. ^ Thoughts about Vail as a destination. ' Best facilities from a design and functionality standpoint. ^ Preferred function space ratios. ' Others, as the market analysis unfolds. Task 1.6 Recommended Facilities Building on the data and analysis in the preceding tasks, the Consulting Team will develop a preliminary program recommendation for the conference center facility. ' The program recommendation will define the general type and quality of conference center, including an approximate amount of exhibition space, meeting space, ballroom space, and describe the general character of the proposed facility, ' including specific features and amenities that should be incorporated. Task 1.7 Demand Projections ' Based on the market opportunity, we will project demand for the proposed facility. We will also prepare an analysis of the impact on existing conference properties in ' the area based on the anticipated level of demand for the new conference center. The projection will include: u 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 8 Conference Center Development ^ Summary of demand calendars of two to three comparable or example ' facilities that are approximately the size of the potential conference center. ^ Development of long-range demand projections addressing number of events, number of event days, number of attendees, number of hotel room nights generated, and the amount of meeting and ballroom space needed for the following types of events: ' - Trade shows, - Local expositions and festivals, t - Conferences/Corporate meetings, - Assembly events, - Entertainment events, - Banquets/Social activity, and ' - Meetings. ^ Testing of demand projections using two analytic methods: - 'Bottom-up' approach reflecting current demand, annual repeat ' events, events turned away, and transfers from other location, and - 'Top-down approach reflecting analysis of comparable facility ' demand, relative levels of supply and demand in the overall market and anticipated future market share. Estimating the effect that expanded facilities would have on hotel demand ' and develop a hotel market growth scenario that assumes that the recommendations of this study are implemented; and a comparison of that ' scenario with a baseline scenario. Interim Workshop ' A h t t e conclusion of Phase 1, the Consulting Team will prepare a summary report and conduct a workshop with client representatives to discuss the results. This ' workshop will be used to refine the elements of the program recommendations, draw conclusions regarding the viability of the project, identify criteria for success, discuss the business plan, and provide specific direction to the technical team in ' order to ensure the most accurate capital costs are developed. In addition, it is critical to make this project interactive, as the transition from market study to business planning will require certain policy decisions by client representative that ' will guide the Consulting Team as we develop the business plan. 6 East Monroe St. • 5`" Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com Town of Vail Page 9 Conference Center Development PHASE 2: BUSINESS PLAN DEVELOPMENT In combination, our team has worked with public, private, and not-for-profit organizations in more than approximately 100 markets to evaluate and develop the most appropriate ownership, governance, management, operating, and finance structures for conference/convention centers or hotels. In this work we have learned that the operating approach and business model used for high-end conference centers vary considerably. In order to provide the TOV with a reliable basis for evaluating its options and making the associated business and development decisions, the Consulting Team has outlined a phase two scope of work that is iterative in nature, to allow for the TOV to participate in decision making throughout the preparation of the business plan. In addition, as the TOV contemplates a two draft process for the Consulting Team, it is fundamental to the process to build in periods for review and comment in order to ensure the work product maintains momentum. Task 2.1 Physical Program/Spatial Analysis/Site Planning Should the market analysis determine there is a need for the proposed facility, we will conduct a spatial analysis and refine the proposed building program to ensure it is feasible (and appropriate) for the contemplated site. The factors to be analyzed include: ^ Site access and visibility. ^ Required infrastructure improvements. ^ Connections to Vail International. ^ Possible ballroom and exhibit space configurations. ^ Meeting room requirements. ^ Food service preparation and points of distribution/sale. ^ Interface and integration with the Lionshead Parking structure. ^ Loading dock requirements. ^ Long-term phasing, improvement, and expansion strategies. ^ Hotel support requirements. Task 2.2 Refined Capital Budget for Construction ARC, along with Conventional Wisdom, will draft an accurate, comprehensive project budget that covers all categories of Owner costs. This budget will include, 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Page 10 Conference Center Development but. will not be limited to, master site development, permits and fees, design, engineering and materials testing, as well as construction, furnishings, fixtures, and equipment costs. The initial budget assumes all non-fixed furnishings and equipment costs including, but not limited to, office furnishings, common area furnishings, kitchen equipment, recreational/playground equipment, computer equipment, tele/data cabling, security equipment, specialty equipment, sound systems, other audio visual equipment, etc. will be included as a lump sum Line item budgets. These costs will be prepared as allowances jointly by the TOV, ARC, and the design team with the knowledge that furnishings and equipment costs are subject to variations contingent on TOV-driven preferences and selections beyond the control of ARC or the design team. An initial construction cost allowance will be created for this budget using local historic cost models and/or comparable, recent actual projects for the costs of new construction. ARC will create and format a draft budget by incorporating the identified direct soft costs, construction costs as described above, and the design, engineering, and materials testing fees into one budget. Irt addition, along-term capital replacement plan, including phased improvements and ongoing physical maintenance will also be developed. ~ Task 2.3 Personnel Requirements for Facility/In-Kind Support from the TOV ' The Consulting Team has developed organization structures and resource deployment strategies for numerous conference and convention facilities. In addition, our team includes the former general manager of the Orange County (FL) ' Convention Center. Based on this direct experience in facility operations, as well as active participation in the International Association of Conference Centers, International Association of Assembly Managers, among other groups, our team is ' well qualified to prepare a baseline organizational structure for the proposed conference center. Included in this structure will be the following elements: ' Overall organizational structure. ^ Staff requirements by department. ' Operating functions and responsibility by department. ^ A review of outsourcing options. ^ Partnership opportunities (Convention and Visitors Bureau, regional transit agency, etc.). 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com Town of Vail Page 11 Conference Center Development In addition, at this stage, the Consulting will also identify ancillary services and impacts to the TOV. Such impacts may include security, sanitation, transportation, and security costs. Often, costs such as these are captured in overhead allocations to the facility in order to ensure the development burden does not have an excessive impact (without itinerant yield) on the community in which it is built. Our team includes former employees of the City of New York and the City of Indianapolis, respectively. Their insights and experiences in planning for in-kind supports and costs for municipal projects will be invaluable in analyzing such issues for the TOV. Task 2.4 Facility Proforma ~ The Consulting team will project the operating revenue and expense projection based on the market study and work already done regarding demand for facilities. We will provide a 20-year projection for the conference center (and other elements are defined during the building program process). ' Based upon our proprietary and comprehensive database of conference center operating statistics, project operating and expenses for the conference center considering the following: I Elements of Pro Forma Revenue Expenses Space Rentals Staffing and Benefits Food and Beverage Contracted Services User Labor Charges Security Equipment Rental Utilities Parking Insurance Advertising and Sponsorships Repairs and Maintenance Naming Rights Advertising and Promotion Premium Seating Reserves for Replacement Ticket Surcharges Supplies Telecommunications Management Fees Other Revenue Other Expenses In addition, as part of this process we will also: ^ Review and discuss revenues available to support debt service. ^ Analyze returns form non-operating revenue sources such as branding and pouring rights, ancillary real estate, off site catering if permitted, etc. ^ Level of support required for the long-term capital program as well as FF&E. ^ Interpret the City's comparative potential and then project: 6 East Monroe St. • 5th Floor .Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com Town of Vail Conference Center Development - Attendance by event type. - Occupied square foot days, by event type. - Group room nights generated by the convention center. Task 2.5 Capital Replacement Budget Page 12 Conventional Wisdom will work to develop a life cycle analysis for the conference center and describe a typical reinvestment program for such a facility. They will then assist the team in developing a reserve for replacement/ CapX budget for the facility. This will be integrated into the overall funding plan for the project. Task 2.6 Operational Deficits Strategy/Alternative Uses We will prepare a fund balance analysis for the project identifying the overall development budget, amortization requirements, preopening costs, operating deficits, dedicated funding sources, CVB funding requirements, and TOV allocations. This will be integrated into a cash flow analysis that will be used in Task 2.10. To the extent that there appears to be deficiencies in revenues in relation to expenses, we will discuss strategies that have been used to solve such issues in other markets, discuss phasing options and other approaches to balance the fund. Task 2.7 Hotel Booking Policies/Agreements Johnson Consulting has extensive experience helping meeting facilities, hotels, and convention and visitors bureaus develop booking policies and agreements. We will share example agreements with you and discuss criteria that would make sense for this project. Based on our discussions, we will prepare an initial draft of an agreement for the project. Task 2.8 Marketing Plan and Costs ' Conventional Wisdom and Johnson Consulting have developed marketing budgets for several facilities domestically. We will share an example template with client representatives. We also have example templates of CVB/Center marketing agreements and we will provide a base document for consideration for the project. We will also benchmark marketing budgets of comparable destinations and be sure a reasonable amount is carried in the cash flow schedules developed u1 Task 2.6. Task 2.9 Economic and Fiscal Impact Analysis ' Johnson Consulting has performed a variety of economic impact studies in various markets for various facilities, ranging from convention centers to arenas to ' fairgrounds. For this project, it may be important to determine where impacts may 6 East Monroe St. • 5~h Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com ' Town of Vail Conference Center Development Page 13 occur as this data can be used to advance the project through the public review and ' approvals process. It will also be helpful in devising an appropriate funding strategy. For this analysis, we will: ^ Use the most recent survey of the International Association of Convention and Visitors Bureau to estimate direct spending by delegates, associations, exhibitors, and the facility itself; adjusted for Local market price indices. ' Identify from where attendance will likely originate. ^ Indicate the volume of hotel room nights generated by the project. ' Identify where spending will most likely be captured. ^ Use the RIMS II model (an input-output model of the local economy) to ' estimate indirect and induced spending and employment impacts of the proposed facility for both the projected events and attendees in a stabilized year of operations, based upon the demand prolechons, and the construction of the facility. ^ Summarize local and state tax structures, including all relevant State, County, City and other municipal taxes that may be appropriate. ' Analyze the impact of the one-time construction activity. Task 2.10 Bond Payments and Revenue Resource Analysis ' Using information developed in Task 2.6 We will work with client representatives and the City's financial advisor to summarize project development costs and ' develop a debt service schedule for a hypothetical hotel and define loan or bond coverage requirement assumptions. ' MEETINGS AND DELIVERABLE PRODUCTS ' The meeting and report schedule is described below: ^ Orientation and Kick-Off Meeting - Upon selection and receipt of authorization to proceed, Consulting Team members will meet with client ' representatives to perform initial fieldwork. ^ Surveys, Interviews, and Follow-up Fieldwork -Approximately two to four ' weeks into the engagement, Consulting Team members will conduct additional research in Vail. This may include interviews with community leaders and tourism-related professionals. ' Draft Market Report and Workshop - A draft report that summarizes the analysis in Phase 1 will be prepared and submitted to client representatives. 6 East Monroe St. • 5"' Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com Town of Vail Page 14 Conference Center Development A workshop with client representatives will be held to discuss the results, and to kick off Phase 2 for the Business Plan development. ^ Draft Business Plan Report - A draft report that summarizes the analysis in Phase 2 will be prepared and submitted to client representatives. ^ Final Report -The final report will incorporate the earlier draft reports with agreed-upon changes and supporting appendices. ' Oral Presentation - An oral presentation of final findings will be made to client representatives. ~,~ 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjacom ii Proposed Organization of the Project Team Architectural Resource Consultants, Inc. Contracting Team Town of Vail Advisory Committee Johnson Consulting Conventional Wisdom Developer ~~ ~ ~~ ~` ~~~ Design Team Note: Structure subject to revision based in determination of "product" delivery strategy (e.g. CM, CM/GC, etc. ) Robert S. Benton Associates Town of Vail Conference Center Development Page 1 PROPOSED PROJECT SCHEDULE We estimate a 10-week delivery schedule for this project. A proposed schedule is provided below. We commit to completing the study by your September/ October 2003 timeframe stated in the RFP. WORK PROGRAM AND PROJECT TIMING Town of Vail- Conference Center Feasibility Study Wk1 Wk2 Wk3 Wk4 Wks Wk6 Wk7 Wk8 Wk9 Wk 10 Phase 1 Market Analysis Orientation and Fieldwork M Economic and Demographic Analysis M Comparable and Competitive Market Review M Conference Cenler Market Analysis Potential User Survey/Analysis Recommended Facilities Demand Projections Draft ReporU Workshop W R Phase 2 Business Plan Development Physical Program R Refined Capital Budget R Personnel Requirements /In-Kind Support Facility Proforma R Capital Replacement Budget R Operational Deficits Strategy/Alternative Uses Hotel Booking Policies/Agreements Marketing Plan & Costs Hotel Booking Policies/Agreements Economic and Fiscal Impact Analysis Bond Payments and Revenue Sources Analysis R Final R ort R = Repoli Product M = Meeting/Presentation/Progress Report W =Workshop F =Final Report 6 East Monroe St. • 5th Floor. Chicago, Illinois 60603• Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com Town of Vail Conference Center Development FEE PROPOSAL The following table details our fee proposal for this project. WORK PROGRAM AND PROJECT BUDGET Town of Vail- Conference Center Feasibility Studv Page 2 Estimated Hours Estimated Hours Average Task Johnson ARC CW RSBA Total Rate Fees Phase 1 Orientation and Fieldwork 16 8 16 8 48 $190.00 9,120 Economic and Demographic Analysis 15 30 45 $160.00 7,200 Comparable and Competitive Market Review 28 14 42 $160.00 6,720 Conference Center Market Analysis 32 32 64 $140.00 8,960 Potential User Surveys 24 24 48 $160.00 7,680 Recommended Facilities 8 28 36 $160.00 5,760 Demand Projections 16 4 6 26 $160.00 4,160 Draft Reportl Workshop 21 21 8 b0 $150.00 7,500 Phase 2 Physical Program 3 32 5 40 $150.00 6,000 Refined Capital Budget 32 16 48 $150.00 7,200 Personnel Requirements lln-Kind Support 8 8 8 24 $170.00 4,080 Facility Proforma 35 7 42 $170.00 7,140 Capital Replacement Budget 8 16 24 $150.00 3,600 Operational Deficits Strategy/Alternative Uses 28 28 $170.00 4,760 Hotel Booking PolicieslAgreements 8 8 16 $170.00 2,720 Marketing Plan 8 Costs 12 12 24 $190.00 4,560 Economic and Fiscal Impact Analysis 32 8 40 $150.00 6,000 Bond Payments and Revenue Sources Analysis 28 8 36 $190.00 6,840 Total Fees 314 48 168 151 681 $ 162 $ 110,000 Allowance for Expenses @ 15 k of Fees $ 16,500 Contract Total $ 126,500 6 East Monroe St. • 5th Floor • Chicago, Illinois 60603• Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com Town of Vail Conference Center Development Page 3 As requested in the RFP, the following are hourly rates for any work requested outside the scope of services. Billing Rates Johnson Consulting Charlie Johnson $220 Matthew Summy $200 Consulting Staff $100-185 Support $50 ARC Christopher Squadra $115 Mark Huff $81 Conventional Wisdom David O'Neal $200 Rick Schmidt $185 Jimmy Ward $160 RSBA Robert Benson $125 6 East Monroe St. • 5`h Floor • Chicago, Illinois 60603• Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com 1 C.H. Joy-tNSc:>~ C_'c>r~t~1i, l ~ ~~~,, I ~c~. Fxnrr.~s ird Rev F-rer~ (~~ :,,~ ~, .~ INTRODUCTION TO JOHNSON CONSULTING EXPERIENCE Johnson Consulting is an international real estate consulting firm specializing in convention/ conference centers, performing arts centers, sports facilities, hotels, golf courses and other real estate land uses. Our firm works with both public and private sector partners. We perform market and feasibility studies, develop business plans, perform surveys, conduct organizational studies, perform tax analyses, and manage the process of obtaining and negotiating with developers for government agencies. We assist all aspects of the early stages of the development process, taking projects from a concept study to asset management for an owner. Johnson Consulting's staff has extensive experience in real estate consulting, public finance, financial analysis, and business planning. The firm's founder, Charles Johnson, has over twenty years of experience in real estate consulting, including direct involvement in over 600 projects. Staff members have advanced degrees in business administration, public policy, finance, and real estate development. Johnson Consulting regularly teams with strategic alliance partners and other firms to provide comprehensive services to our clients. OUR CLIENTS Our clients include state and local government agencies, real estate developers, sports franchise owners and teams, contractors, CVB's, universities, fairgrounds, lenders, and investment bankers. Over the past five years, Johnson Consulting has served clients in North America, South America, Europe, the Caribbean, and Asia. OUR APPROACH TO SERVICE We guarantee our clients the day-to-day involvement of senior staff in all of our engagements. We offer creative solutions supported by rigorous analysis and field-tested methodologies. Our clients appreciate the timely delivery of high-quality reports designed specifically for their needs. Numerous long-term and repeat engagements attest to satisfied clients. ' AFFILIATIONS Among Johnson Consulting's numerous affiliations, either individually or as a corporation, are: ' International Society of Hospitality Consultants (Charles Johnson) International Association of Fairs and Expositions International Association of Assembly Managers International Economic Development Council ' International Downtown Association International Association of Convention and Visitor Bureaus International City/County Management Association ' Urban Land Institute National Congress on Community and Economic Development ' Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone 312.444.1031 Fax 312.444.1125 www.chjr,.com + info@chjc.rom C.I. JO~~NS(~)N C'() ~~~~L I, ~_1 \~~_ Iti~C_ . FYl'i P.75 7h RFA~_ ~}l~ n ((~:v>~ ~tG Stadiums/Arenas/1'heaters Alcoa Proposed Arena Feasibility (Tennessee) Arlington Heights -Metropolis Performing Arts Ctr. (IL) Ashland Motorsports Speedway (Kentucky) Beazs Domed Stadium, McCormick Place Beijing Olympic Facilities - 2008 Olympics Boston Red Sox- Economic Impact Analysis BI-LO Center (Greenville, SC) Charlotte Coliseum Chesterfield County Arena and Soccer Complex (Virginia) The Citadel- Proposed Stadium Columbus, Ohio Arena Development Des Moines Arena Dover Arena Feasibility (Delaware) East St. Louis Motor Speedway El Paso, TX- Arena/Sport Authority Development Erie Civic Center- Feasibility Study and Masterplan (PA) Freedom HiIl Amphitheater, Sterling Heights, Michigan Formula Motorsports Park -Pennsylvania Golden State Warriors Arena (Oakland) Grand Rapids Arena (Michigan) Holland Arena Feasibility (Michigan) Indianapolis' Blocks Theater Iowa Motor Speedway- Jasper County, Iowa Jackson, MS -Proposal AA Minor League Baseball Stadium Kiel Center Arena- Opera House (St. Louis) Loudoun County Proposed Arena (Virginia) Manchester Civic Center- Proposed Arena (NH) Miller Park- Milwaukee Brewers Norfolk Scope Complex Operations and Executive Search Quad Cities Speedway Richmond Coliseum and Mosque Theater Savannah Proposed Arena (Georgia) St. Louis Domed Stadium Tampa Baseball Group - MLB Expansion Tampa Stadium -Relocation Analysis Tampa Sports Authority Palmer Auditorium/Bass Hall (Austin) Valdosta Motor Speedway Victory Stadium- Renovation Analysis (Virginia) Washington Redskins -New Stadium West Palm Beach Minor League Stadium WIlmington, DE- Diamond State Sports & Community Ctr. Wyandotte County Proposed Arena (Kansas) Convention/Civic Centers Austin Convention Center Akron Convention/Conference Center (Ohio) Baltimore Convention Center (Maryland) Bangkok Convention Center Hotel Complex (Thailand) Boston Convention and Exhibition Center Broward County Convention Center (Ft. Lauderdale) Buenos Aires Convention Center Development (Argentina) Cancun Convention Center (Mexico) Canton Civic Center (Ohio) Charlotte Convention Center Cincinnaii Convention Center (Ohio) Cobo Center (Detroit) College Park Convention Center/Hotel Complex (GA) Columbus Convention Center (Ohio) Dane County Coliseum/ Fairgrounds (Wisconsin) Des Moines Convention Center (Iowa) Hynes Convention Center (Boston) Jackson Convention Center (Mississippi) Jacob Javits Convention Center (New York) Japan Convention Market Entry Study Kansas City Convention Center Kissimmee Civic Center (Florida) Kuala Lumpur City Centre Madison Convention Center (Wisconsin) Malaysia Expoland (Kuala Lumpur) McCormick Place (Chicago) Meydenbauer Center (Washington) Montego Bay Convention Center Feasibility (Jamaica) Myrtle Beach Convention Center National Trade Center (Toronto) Navy Pier (Chicago) Norfolk Convention Center (Virginia) Ocean Center- Daytona Beach, Florida Orange County Convention Center (Orlando) Oregon Convention Center - Benchmarking Analysis Overland Park Convention Center (Kansas) Oregon Convention Center (Portland) Peoria Civic Center (IL) Philadelphia Convention Center David Lawrence Convention Center (Pittsburgh) Richmond Convention Center (Virginia) San Mateo State Fair Expo Hall (California) San Juan Convention Center (Puerto Rico) Savannah Convention/Civic Center Singapore Trade and Convention Center St. Charles Proposed Convention Center and Hotel (Missouri) St. Louis Cervantes Convention Center South San Francisco Conference Center Tampa Convention Center Toronto Exhibition Place Trademart and Exhibit Hall Trenton Exhibition Facility Feasibility (New Jersey) Tucson Convention Center, Arena, Performing Arts Complex Tulsa Arena and Convention Center Washington State Convention & Trade Center Winnipeg Convention Centre -Operational Audit (Manitoba) Wisconsin Center Expansion (Milwaukee) World Expo Center (Osceola County, Florida) Vancouver Trade and Convention Centre Conference Centers and Headquarters Hotels Aurora Conference Center and Hotel (Colorado) Austin Convention Center Headquarters Hotel Bangkok, Thailand -Hotel and mixed-use complex Calgary Convention Hotel -Land lease refinements Charlotte Convention Center Headquarters Hotel College Park, GA Convention Center/Hotel Concord Resort Conference Center (New York) Denver Convention Center Hotel Embry Riddle Aeronautical University Conference Center (FL) Ft. Worth Convention Center Headquarters Hotel Houston Headquarters Hotel Minneapolis Hilton Melbourne, FL Conference Center Feasibility at Airport New Orleans Headquarters Hotel Overland Park Headquarters Hotel (Kansas) Peoria Castle Lodge (Illinois) Purdue Calumet Conference Center (Indiana) San Moritz, Switzerland Conference Center South San Francisco Conference Center St. Louis Headquarters Hotel Washington DC Headquarters Hotel Wausau Hotel/Conference Center (Wisconsin) Real Estate, Tourism & Urban Entertainment Boston Convention and Visitors Bureau Funding Analysis Boston Redevelopment Authority -Facility Funding Plan Bradenton, Florida- Real Estate Economic Master Plan -PUD Buffalo Convention and Visitors Bureau (New York) Cincinnati Regional Tourism Study (Ohio) Commonwealth of MA -Regional Tourism Study Commonwealth of KY-Tourism Development Initiatives Environmental Education Center -Greylock Glen, MA Grand Rapids CVB Promotions Plan & Room Tax Projections Hamilton County Fairgrounds, Indiana Houston Casino Developer -Proposal Review Leu Botanical Gardens -Orlando 4~~~ Street Live! Retail Complex -Louisville Museum of Science & Industry -Columbus, OH New Orleans Land-based Casino Organizational Study- Cincinnati CVB Organizational Study -Milwaukee CVB Organizational Study -Orlando CVB Organizational Study -Tampa CVB Organizational Study -Tulsa CVB Orlando, Florida- Real Estate Economic Master Plan -PUD Palm Springs Resort Development Richmond Convention & Visitors Bureau Rockford Masterplan (Illinois) Roebling Resort Redevelopment (New Jersey) Royal Gorge Park Masterplan (Colorado) Salem, OR Fairground Analysis San Juan, PR- Office, Retail, Hotel, Residential Analysis Sault Ste. Marie Indian Tribe Casino (Detroit) Savannah, Georgia Proposed Aquarium St. Louis Convention and Visitors Commission Toronto Tourism Strategic Plan Tourism Authority of Thailand Vista Entertainment District (Kennewick, WA) West Palm Beach Meals Tax Analysis World Trade Center- San Juan, Puerto Rico World Trade Center Association- Economic Impact Analyses of various worldwide WTCs Waukegan Waterfront Masterplan (Illinois) Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone 312.444.1031 Fax 312.444.1125 www.chjc.com • info@chjc.com u ii 0 n ii C.H. JOHNSON CONSULTING, INC. EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING CHARLES H. JOHNSON IV President Charles Johnson is an economic and real estate consultant with over twenty years of experience consulting on over five hundred tourism, resort, convention, sports, hospitality and urban planning projects. He provides strategic guidance to clients based on comprehensive market, financial, and economic impact analyses and has special expertise working with community governments, project developers, architects, construction firms, and underwriters. His project involvement begins with pre-development activities and follows through design, construction, and startup operations. Background Johnson currently serves as consultant to the City of Fort Worth, Texas, conducting analysis for the development of a convention center headquarters hotel. He is also currently working in Erie, PA and Canton, OH on redevelopment of their civic centers. He recently participated in studies for development of minor league arenas in Greenville, SC, Alcoa, TN, and Manchester, NH; convention centers in Boston, Branson, and Milwaukee; and performing arts centers in Cleveland, OH and Erie, PA. Before starting his own firm, Johnson was National Director of ICI'MG Peat Marwick's Convention, Sports and Leisure Consulting practice. He has also work with development firms in Orlando and Chicago. Johnson began his consulting career at Laventhol & Horwath, where he worked for eight years. Johnson has extensive experience in market research, financial analysis, facilities planning and operation, and urban design issues. He served as consultant for Chicago's McCormick Place Expansion and Navy Pier redevelopment. He conducted a comprehensive analysis for a proposed professional major league baseball stadium for Tampa, Florida; market analysis, site evaluation, financial and economic impact analysis for the expansion of the Cincinnati Convention Center and an adjacent domed stadium. Johnson also prepared an expansion and operational analysis for the Jacob javits Convention Center; and conducted evaluations for several projects in downtown Toronto. He has conducted hotel studies for projects in Chicago, Austin, Charlotte, New Orleans, Houston, Minneapolis, and Tampa. He has done similar research and analysis on projects throughout the U.S. and in Canada, Japan, Thailand and Malaysia. Affiliations International Association of Hospitality Consultants (ISHC) International Association of Auditorium and Arena Managers (IAAM) International City Managers Association International Downtown Association American Hotel/ Motel Association Center for Exhibition Research Urban Land Institute Representative Projects Americas World Trade District San Juan, Puerto Rico Boston Convention and Exhibition Center Boston, MA McCormick Place Expansion Analysis Chicago, IL Navy Pier Redevelopment Analysis Chicago, IL City of San Jose Evaluation of offer to attract the Golden State Warriors Prince George's County Stadium (Washington Redskins- Washington D.C.) Kuala Lumpur City Center Malaysia Education and Accreditation MBA and BS, finance with honors Florida State University Tallahassee, FL Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone 312.444.1031 • Fax 312.444.1125 www.chjc.com• info@chjc.com C.H. OHNSON CONSULTING INC. J EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING ' MATTHEW SUMMY Vice President Matthew Summy is an economic development, public administration, financial, and ' management consultant with experience in real estate and land-use planning. He provides, market, financial, public policy, and organizational analysis. Back round g Summy is currently leading a consulting team in the development of an entertainment and Representative Projects ' cultural district masterplan for downtown Erie, PA that involves a new public park and the Greater Cincinnati Convention renovation of an historic theater, arena, and ballpark. He is also providing market and and visitors Bureau Organizational and Strategy competitive positioning analysis to the City of Phoenix, AZ with regard to the Phoenix Civic Review ' Plaza convention center. Since joining Johnson Consulting, Summy has also completed a phoenix Civic Plaza Market market and real estate analysis for a hotel and conference center that will anchor the Analysis Phoenix, AZ redevelopment of 100-acre industrial park in Coralville, IA, an economic development and ' feasibility study for the development of a convention center to extend the revitalization of Entertainment District Masterplan and Feasibility downtown Canton, Ohio, and an or anizational and strate review for the Greater Cincinnati g ~' Analysis Erie, PA Convention and Visitors Bureau. t Industrial Site Redevelopment / Before oinin ohnson Consultin , Summ was with the New York Ci Housin j g J g Y h' g Masterplan (Hotel/Conference Center) Development Corporation, where he was a Senior Vice President, responsible for the daily Coralville, IA ' operations of a public benefit corporation with a $15 million annual budget, 110 employees, Canton Memorial Civic Center and more than $750 million in outstandin revenue bonds. While at HDC, he develo ed a g p Redevelopment Analysis Canton, OH ' program to preserve the availability of multi-family low-income housing through debt restructuring. Under his leadership, the program restructured $18 million in mortgages, Peoria Civic Center Masterplan Peoria, IL preserving more than 900 units of housing in Harlem. ' Summy also worked in the New York City Mayor's Office of Operations, where he conducted management and operational reviews of city agencies, developed management indicators to measure agency and contract performance, and analyzed potential privatization initiatives. ' Summy holds an MPA with a concentration in Management from the Wagner School at New York University. While in graduate school, Summy received funding from the Ford ' Foundation, Students for Responsible Business, and Neighborhood Progress Incorporated to a conduct a study regarding the impact that a reduction in Community Development Block Education and Grant funds would have on the ability of community development corporations in Cleveland Accreditation to pursue targeted development initiatives. He then prepared an advocacy manual to advise MPA, Management New York Universit ' stakeholders on how to work with public and elected officials. His work with NPI resulted in y his bein awarded a Youn Leaders Fellowshi b the National Con ress on Communi and $ g I? Y g ~' BA, .journalism University of Iowa ' Economic Development. Affiliations ' National Congress on Community and Economic Development National Association of Local Housing Finance Agencies (former Board member) Urban Land Institute, Chicago Public Policy Committee ' Council on Urban Economic Development Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone 312.444.1031 • Fax 312.444.1125 ' www.chjc.com• info@chjc.com C.H. JOHNSON CONSULTING, INC. EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING DAVID STONE Senior Project Director David Stone provides economic, market, and financial analysis. He is also responsible for project research, analysis and report writing. Background Stone joined Johnson Consulting while in the process of completing his graduate degree in Business Administration. At Johnson Consulting, he serves as an economic, market, and financial analyst. ' He graduated from Indiana University with a Bachelor of Science degree in Accounting and a minor in Spanish. While in college, Stone completed an internship with Rosenthal Collins Investment Group, aChicago-based trading firm, and worked for World Cup USA, where he was Assistant Director of Opening Ceremonies for the 1994 men's World Cup. He completed his MBA degree in early 2000, with specializations in Finance, Economics, and Strategic Decision Making. He received Dean's List recognition in the 1998-99 school year and graduated with honors as a member of Beta Gamma Sigma, a national academic honor society for business students. After graduating from Indiana, Stone joined Checkers, Simon & Rosner, a public accounting firm in Chicago, and was a member of its Real Estate team, where he worked on audits, ' financial reports, and tax returns of both public and private real estate developers and entities. He then worked as a writer, focusing mainly on business and sports business issues. He was a staff writer for The Sports Business Datly, which is a leading industry trade publication, and has been cited and published in numerous other publications. He has written on the development and acquisition of professional sports leagues, marketing and collective bargaining issues, and factors affecting the financial condition of teams and leagues, among other subjects. Since joining Johnson Consulting, Stone has performed several studies for sports facilities, ' including the feasibility analysis for the Manchester Civic Center, the 10,000-seat the Verizon Wireless Arena in Manchester, NH, and a feasibility analysis for a refunding of debt related to the BI-LO Center's operating revenue. Recently, Stone worked on feasibility studies for a new football stadium for The Citadel, analyzing the market and financial implications of replacing the university's existing facility. He has recently completed feasibility analyses for numerous convention centers, including the Cancun Convention Center, a new convention center in Buenos Aires, a convention/conference center project in Reno, Nevada, and a convention center development ' in St. Charles, Missouri. He has also completed work on several multipurpose centers, including the Ocean Center in Daytona Beach, Florida. J Representative Experience Public accounting experience in the real estate industry Knowledge of sports economics and marketing, including numerous published articles Education and Accreditation Bachelor of Science in Accounting with a minor in Spanish, Indiana University MBA degree with honors in Finance, Economics, and Strategic Decision Making, Loyola University Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone 312.444.1031 • Fax 312.444.1125 www.chjc.com• info@chjc.com C.H. JOHNSON CONSULTING, INC. EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING ROB S. HUNDEN ' Senior Project Director Rob Hunden provides public policy, urban planning, financial, and market analysis for hotels, ' convention centers, sports facilities, and mixed-use facilities. He is also responsible for project research, analysis, and report writing. ' Background Hunden joined Johnson Consulting from a position in commercial real estate investment consulting where he worked for Landauer Associates, a subsidiary of Grubb & Ellis Company. Prior to that, he worked in municipal government for the Indianapolis Local Public ' Improvement Bond Bank, serving as a Special Projects Manager. Hunden was responsible for numerous aspects of the economic development projects initiated by the Mayor of Indianapolis. Responsibilities with the City of Indianapolis included analyzing the feasibility of a convention hotel and the subsequent negotiation, legal, and financial development process of the 615- ' room Marriott. Concurrently, he analyzed the tax streams and other sources of funding for the Indiana Convention Center and RCA Dome expansion and prepared grant requests for the Lilly Endowment, as well as figures for lobbying efforts to the Indiana General Assembly. He ' provided similar analysis for portions of the Conseco Fieldhouse funding model. During and since his tenure, Hunden has tracked detailed convention, hotel and sports facility development throughout North America. ' Hunden also managed the budget, construction, and historical mitigation of the Circle Block project on Monument Circle in Indianapolis. This new project within several historic facades ' included Emmis Communications' corporate headquarters, a parking garage, and retail. He also was appointed to analyze the redevelopment proposals for Union Station. During this time, he conducted policy and strategy meetings with advisors, developers, and elected ' officials and directed the group towards consensus. Other projects include site location analysis for a downtown amphitheatre, feasibility of a ' downtown arts, culture, and tourist monorail, board development for the Murat Centre Foundation, redevelopment of a 40-year old shopping mall, the management agreement for the Indianapolis Arts Garden, the hotel analysis and bid for the 2000 Republican National ' Convention, feasibility of multiple projects for the Circle Block II site, and redevelopment of the Blocks department store building. Representative Experience Convention hotel feasibility and development Extensive research on convention center development Directed public sector economic development and policy experience in nation's 12'h largest city Education and Accreditation Indiana University Bachelor of Science in Finance Since joining Johnson Consulting, he has focused on hotel and convention/conference center projects in Thailand, Fort Worth, Coralville (Iowa), Louisville, Osceola County (Florida), St. Charles (Missouri), St. Louis, Tacoma, Salem and Portland (Oregon), Sullivan County (New York), Trenton, El Paso, Detroit, and Phoenix. He also teaches tourism and economic development at Kendall College in Evanston, IL. Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone 312.444.1031 • Fax 312.444.1125 www.chjc.com• info@chjc.com n C.H. JOHNSON CONSULTING, INC. EXPERTS JN CONVENTION, SPORT AND REAL ESTATE CONSULTING AYU LISTIOWATI Project Director Ayu Listiowati provides economic, market and financial analysis for real estate and hospitality projects. She is also responsible for project research, analysis and report writing. Background Listiowati joined Johnson Consulting after earning her masters degree in Real Estate from Cornell University. She graduated from University of Indonesia with a Professional Degree in Architecture. While in the university she interned as a Field Supervisor Trainee in a 32-story office building designed by Kohn-Pederson-Fox Architects of New York in Jakarta, Indonesia. Additionally, she completed an internship with Housing and Development Board (HDB) in Singapore, where she participated in HDB's public housing projects. Upon graduation Listiowati joined an architectural design-consulting firm in Jakarta, ' Indonesia, where she worked with Wimberly Allison Tong and Goo (WATG) Architects of Honolulu on a 4-tower apartment project in Surabaya, Indonesia. Later she joined PT Jaya Real Property, a leading real estate development firm in Jakarta, in which she had the opportunity ' to work with planners Calthorpe/Solomon and Kaplan/McLaughlin/Diaz of San Francisco in the developing a 4,200-acre new town in Tangerang, Indonesia. ' At Cornell University, Listiowati developed a concentration in real estate development and finance. She completed an internship as an Analyst with Winthrop Financial Associates, a real estate management firm in Boston, Massachusetts. Additionally she intensively case-studied ' the newly expanded Convention Center in Baltimore, Maryland and developed a proposal for a 640-room headquarters hotel on the selected site. She also won a fellowship from James E. Gibbons Educational Development Trust Fund, The Counselors of Real Estate in 1997. 0 ~J Since joining Johnson Consulting, Listiowati has worked on the feasibility study and room-tax projection for the City of Overland Park, Kansas, which is developing a new convention center, and also on the evaluation of the developer's proposals for the headquarters hotel. She has worked on several projects in San Juan, Puerto Rica In the Roberto Clemente Sports City project, she worked on the demand and financial projections for the improved sports facilities and proposed 250-room hotel. For the Americas World Trade District (AWTD) project in San Juan, she worked on demand and financial projections for the convention center, hotels, office, retail, and residential proposed for the 108-acre district. She also worked on Puerto Rico's hotel room tax projections for financing the convention center, evaluation of the developer' proposals for the various land uses, evaluation of the management firm' proposals for the convention center operation, and research of development agreements of comparable developments. She has also recently performed a feasibility study for the development of a conference center at Jackson State University, and aconvention/conference center and hotel in Coralville, Iowa. She is currently working on a business plan development for an exposition hall at Pier 94 in New York City. Representative Experience Education, training and professional practice in architecture. Internship on construction of an office tower in Jakarta and housing projects in Singapore. Collaborative works with W imberly Allison Tong and Goo (WA7G) of Honolulu, Calthorpe/Solomon and Kaplan/McLaughlin/Diaz of San Francisco. Internship with Winthrop Financial Associates in Boston, Massachusetts. Graduate study in real estate, focusing on development and finance and research on hospitality industry. Education and Accreditation Professional Degree in Architecture, University of Indonesia Masters of Professional Studies in Real Estate, Cornell University Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone 312.444.1031 • Fax 312.444.1125 vvww.chjc.com• info@chjc.com C.H. JOHNSON CONSULTING, INC. EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING TODD GRUEN Project Director Todd Gruen provides economic, legal, and market analysis for sports facility, hospitality, and real estate projects. He is also responsible for project research and report writing. Background Gruen joined Johnson Consulting from sports marketing publication firm Team Marketing Report. He has a specialized knowledge of arena and stadium development, and was Representative Projects responsible for writing several publications that have covered various segments of the Indus , includin Inside the Ownershi o Pro S orts, Namin Ri hts Deals, and Le al Issues in ~' g P .f P % % % Masterplan for riverfront events district, Rockford, IL Sports Sponsorship. His duties with the firm allowed him to gain an understanding of performing Arts industry stadium/arena financing methods, management coordination, and sponsorship sales. Gruen analysis, Arlington Heights, IL has been cited and published in several media publications. Hoteliconference center management, operations, and development agreement review, Prior to joining Team Marketing Report, he earned his JD from Chicago-Kent College of Law, Salem, oR with a specialization in labor and employment law issues. While in law school, he completed internships that included: Mark Bartelstein & Associates, where he analyzed sports sponsorship contracts; Zucker Sports Group, where he served in all aspects of athlete representation; and a clerkship with the law firm of Katz, Friedman, Schur, and Eagle, where education and he dealt with labor negotiations. Accreditation BA, Sports Management and He earned a Bachelor of Arts degree in sports management and communication from the Communication university of Michigan University of Michigan. In college Gruen spent his summers interning for the Greater JD, with a specialization in labor Milwaukee Open, a PGA Tour annual event, and worked for Deloitte and Touche, LLP as a and employment law Chicago-Kent College of Law legislative correspondent that covered the changes in federal tax policy. At Johnson Consulting, he provides economic, legal, and market analysis. He recently ' performed analysis for the viability of an exhibition and sports district in Beijing, China, the development of conference center/hotel in Melbourne, FL, and the development of a NASCAR racetrack and retail outlet mall in Tulsa, OK. Other projects include: a feasibility study for a ' minor league hockey arena and soccer complex in Richmond, VA; a performing arts center in Arlington Heights, IL; and drafting the development/management agreements for a conference center/hotel in Salem, OR. ' Affiliations Member of the Illinois Bar ' Chicago Bar Association Illinois State Bar Association Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone 312.444.1031 • Fax 312.444.1125 ' www.chjc.com• info@chjc.com C.H. JOHNSON CONSULT'1NG, INC. Exnex rs rN C'uroccNr~o ~~, Si>oR r i,vn R r a c l; ~ r ~n~t Co 5 s: T_ n rc Conference and Meeting Facility Feasibility Melbourne, Florida ~ N p.~ !GO CA ~ ~ ~IFINIIr (LEAN i ~ r i • (___ F 5 ~ E t '~~ i~ 'tVwxrwr ~M47Rwt ,5 9EP%R"•RF ~be5 ^- re< AI . wxmmearu r Y, rw • wum aca.~~ ~r1TUSVILLE ~ f L.. t r,~~~. K5C ~ighxr~y ~., 1' ~ 1 ~. cane Canaveral OR Nyu "I~~a i~' ~ Air 5tatl;~n 4-,Y ~~. ~' Jx st.~rn va r ~ ~ i ~Y ~i.~r~a.vre., ' C CO -~aPE ra,N~t'ERaL 't ~ ~>~ ~.rN~R. _~ ~_r,A~A.N KL SE s f ~I m.•. GM°~ VI ~ PA(PorN AFB `\ emwr~ ; ~ sATE[LnE SEA~~ f Maronurna ~f ~ Internaabnal \ Alrpm7 yy ti° I INB7AN NARBC1l;R i BEnfN INBIAL.ANtIt cc ~ NEL OURN IaEL89U(NIE ~~ BEACN i ~ ALN 8 _ BAY r,%,.~_ \ `5F6ASTIkN IIIIET li RAN Brevard \P~fx County '3 \+ 35 ~ b11CC C~ -~ ~~j ll\\ Project Highlights ^ Analysis of Brevard County and the Space Cost area ^ Analysis of existing Iocal meeting, exhibit, and hotel facilities ^ Facility recommendations based on market needs and characteristics ^ Phase Two will consist of further refinement of project planning and analysis Johnson Consulting is currently engaged by the Melbourne Airport Authority (Authority) to prepare an independent assessment of the market potential for a conference and meeting facility on airport land in Melbourne. The Authority is in the process of updating its airport masterplan and is considering the addition of a conference and meeting facility on its property. The facility would likely host exhibitions, meetings and conferences, and other business, social, and community events, paxticularly considering the lack of existing facilities in the county. The Authority also wants to analyze its position to target TDC funding to assist in development of such a facility. Johnson Consulting is working with Reynolds, Smith, and Hills, Inc. (RSH), a leading architectural, engineering, planning, and environmental consulting firm, on the project. Our engagement consists of two phases. 1Ne recently issued our Phase One report, which includes an economic and demographic overview of the local market, a market and industry analysis of the meetings industry, local and comparable facilities, conclusions relating to the Melbourne market, and recommendations of facility elements and sizing. It also presents the facility's projected operating and financial results. We were recently authorized to perform Phase Two, which will address in more detail the specific concept, elaborate on a specific site concept study, and will develop information suitable for inclusion in RSH's masterplan for submission to the County for consideration. Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone: 312.444.1031 Fax 312.444.1125 www.chjc.com • info@chjc.com ii G' C.H. ]C~HN~C7'v C ~,t'~~ `., r .t~, f,~.t:-. CXPEIt TS ~iV TOUR/S 1i Z71 VYLL i r ~Y; Conference Center Development /Jackson State Univ. Conference Center Jackson, Mississippi Project Highlights ^ One of the few capital cities without a convention center ^ Identified a convention center site with adjacent hotel and con$erence center • Facility recommendations and site review ^ Economic and fiscal impact analysis The Jackson Convention & Visitors Bureau (Jackson CVB) contracted with Dale & Associates, Johnson Consulting, and Conventional Wisdom to perform an implementation study for a new convention center district in downtown Jackson. The report included facility recommendations and estimates of demand, projected financial performance, estimated economic impact, and identified financial strategies. The project will form part of a cultural area of the City that includes performing arts facilities and a fairgrounds and arena complex. Once the project was deemed feasible, our Team presented the findings to the Governor of Mississippi and advocated for the project on the state level. Johnson Consulting was subsequently engaged by the Jackson CVB on behalf of the ' Mississippi Telecom Committee to prepare an updated business plan for the proposed Telecommunications and Technology Conference Center. The analysis identified the operating characteristics of a stand-alone conference center in downtown Jackson. ' Supplementary scenarios were developed which included the Center being integrated with a hotel facility, and integrated into the proposed Jackson Convention Center. ' Additionally, Jackson State University (JSU) engaged Johnson Consulting to perform a feasibility and market study for a new conference center facility for JSU. Located in Jackson, Mississippi, JSU is one mile west of the state capitol building in downtown Jackson. The 125-acre main campus of JSU serves as the administrative home for a ' university with 6,354 students. JSU is exploring various options to improve the school's education outreach efforts and enhance the university's position as a community resource, specifically expanding the delivery of adult and continuing education programs. Johnson Consulting concluded that a conference center is a logical addition to JSU and would further the educational mandate of the University. ' Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone: 312.444.1031 . Fax 312.444.1125 www.chjc.com C.J-j. .1o1-INSt:=)'ti {'t>~ti[ i.li`.:t~ I' E.rPC~ars'rn'Cowrri~riav, Sr~nui,ivnl?F i~ Nsi,rir ~~~tin ~ .~, Resort Conference Center Feasibility/ Hotel Area Masterplan St. Moritz, Switzerland 'r~''', ~•. ~~m'# ~ f, ~-r .;~~,~~~~ k; ,~ ' , p,. s ~, ~:~«~ Project Highlights • Feasibility study for a resort, conference center area • Objective was to reduce reliance on the ski and leisure market • A first-phase conference center will result in over 85,000 room nights annually • Estimated delegate spending is to be 1.3 times international averages Portman Schreiber, Ltd. (a joint venture including the John Portman Company) obtained development rights fora 25+-acre parcel in St. Moritz, Switzerland. The site is partially occupied by an historic hotel and spa and is also targeted for a casino. The development team, along with community officials, asked Johnson Consulting to help determine what development options exist for the project. We performed a full feasibility study for the project and quantified the demand benefits that would accrue to both this 25± acre site and other hotels and businesses throughout the area. Findings from the study indicated the following: - Targeting meeting and conference business will be strategic for St. Moritz if it wishes to reduce its reliance on the seasonal ski business. A conference facility would provide a steady base of demand that would complement the ski market. - The adjacent spa needs to be repositioned and upgraded. - A conference center would generate 85,000 room nights for the St. Moritz property. The hotels adjacent to the conference center would capture a minimum of 40,000 room nights annually. Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com 1 0 1 0 1 1 C.H. ~OH'~~J4,c`"' ( (~~~~ ! I ~ i ~~~;, I ~C. k,.x~F.~<in~~o~ ~ ~nr ~ R; F < < ~ ~-~, Renaissance Hotel and Waterside Conference Center Portsmouth, VA The City of Portsmouth engaged Johnson Consulting to analyze the feasibility of a potential meeting facility in Portsmouth. The study objectives were to perform a market analysis and determine the appropriate size and type of meeting and ballroom facilities. Johnson Consulting developed demand and room night estimates for the facility and by estimating the economic impacts that may result from its operation. The City used our research to help determine the type and extent of public participation in the project. The Renaissance Hotel and Waterfront Conference Center has opened as a successful public/private partnership. The Renaissance is owned and operated by the same developer that opened and operates the Marriott Waterside Complex across the river from this hotel. Project Highlights ^ Public private partnership ^ Public facility developed and operated by private sector developer ^ Advised City on meeting room compliment and deal structure Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com C.H. ~oH~~~,~,ti~~~ ~: ~~r~t ~~; ~ ~~,,{. GXP/: h'TS ~~N l n~ rvc~nin ~, ~rnar ~ r> Rr,u_ r.~ il; i n~~~ -, .. Proposed Hilton Garden Inn Conference Hotel At Kentucky Fair and Exposition Center, Louisville KY ~'" ~ f , T I:r l- r'"' f r 1T' (r ~T it :_' ~ ~~ ,,f ~~ [,Y~ rr, rr ~ i ~'", ~ ~ ~ ~' ~ ~ ~ ~ ~ ~` . ~~,,;I Ili iiiifil= ~~ The Tourism Development Cabinet of the Commonwealth of Kentucky engaged Johnson Consulting to perform analyses of developments that apply for the Kentucky Tourism Development Act (KTDA) Refund Program. The KTDA established a state sales tax incentive program for new or expanding tourism attraction projects whereby eligible projects receive rebates based on the amount of increased sales tax receipts generated by a project's positive impacts on state tourism. Johnson Consulting is under contract with the Kentucky Tourism Development Cabinet to evaluate whether projects that apply under the KTDA are eligible to receive the sales tax rebate. The firm is in its third year of a contract to review such initiatives. Johnson Consulting analyzed the eligibility of the proposed 210-room Hilton Garden Inn Conference Hotel at the Kentucky Fair and Exposition Center. The proposed facility combines full-service hotel amenities such as 12,500 square feet of meeting space and full food and beverage service, yet with a lower capital cost than afull-service property. Our analysis showed that the hotel would induce more than the threshold ' 25 percent of its demand from out of state, required by the act. Further, the hotel is located near the University of Louisville and if the sales staff at the hotel targets U of L conference demand, the likelihood of additional out-of- state demand will be higher. The $18-million hotel qualified for the state participation and will receive approximately $4 million in tax rebates, based on taxes the hotel generates, paid over aten-year period. Project Highlights ^ Ongoing project determining eligibility of developments that apply for rebates under the KTDA Hotel provides much-needed full- service amenities and meeting space to complement the Kentucky Fair and Expo Center ' Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com C.H. JoH ~,,c.;,, c ~, ~.. EXP£)iT.$~iv('ON6'P: v7vr7~.S/aOk7ni. 11 r:,t it s~.~i;;. lO~,~ n~c .~5~~ ~a ~,~~ ~ ,~" "'g~ ,~d:r ; ~ '~~~ ~~ ~ ~~s ,,~ r ,t ~ : t~ ~c~~J r,,,.,.,. ..: ~~~,, 1, , • .~,' ,~. ~.~ ~ Mr d" Project Services ^ Deal structure analysis ^ Negotiation support ^ Developer/operator due diligence review ^ Financial Analysis ^ E,conamie Impact Review Johnson Consulting is currently assisting the City of Salem in finalizing projections and developing a deal structure for a combined hotel and conference center project for downtown Salem. The project will be developed under an innovative public/private partnership. The $19 million project, which will feature an integrated 200-room hotel and conference center with 45,000 gross square feet of exhibit and meeting space, is being developed to provide ahigh-quality venue to service the growing need for conference space in Oregon's state capital. As part of the engagement, Johnson Consulting is working with the City to ' develop a financing structure for the project that will create a TIF district to fund the conference center element and requires the selected developer/operator to participate in the financing of the hotel. The ' developer/ operator term sheet struck by the City provides for fair terms for both parties and accomplishes the stated goals for the project and the City. ' Johnson Consulting also conducted due diligence review to ensure the integrity and capacity of the developer to implement the project, and is providing deal structuring negotiation support for the management and ' operating agreements. i ' Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com Salem Hotel and Conference Center Salem, Oregon L'.APfF7S i:V C~!)\'b'1: V71(1 ~_ 1i'C)Hl 7»12 [:~; 1. l51 ,~. :'rl\`1 .. .~ Purdue University Calumet Hammond, IN h,., m~. Project Highlights ^ Prepared new business plan ^ Established revenue targets ^ Identified market penetration targets ^ Contract evaluation and improvement Johnson Consulting has been engaged by Purdue University Calumet to prepare a new business plan for the university's existing conference center. The objective is to reposition the facility and revamp the operating structure in order to more effectively compete in the regional conferencing market. While the Center at Purdue University Calumet has developed an excellent core business and high-quality events center, the original objective of using the facility to draw professional and knowledge-driven professional activities to campus has not been met. In addition, based on the lower than anticipated utilization, the Center is achieving its financial targets. The impact to the University is larger than anticipated annual operating contribution. As part of this engagement, Johnson Consulting is conducting a physical, financial, and operating review of the Center. When completed, our report will include recommendations on facility program changes, business and execution strategies, performance measures, estimates of demand, projected financial performance, and a review of strategic issues that need to be addressed by Purdue University Calumet in order to realize the potential of the Center. x~ + :fib Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com • info@chjc.com C.H. JOHNSON CONSULTING, INC. F.~rr:rr~s im ('nsr~.:vrron~, .5'vokr.an~~ Rtdr. EsrarF: Cn:v.cocrr,ac Southwest Texas State University Aquarena Springs San Marcos, Texas Project Highlights ~"~,. ~;: ~ ^~ ~~ .~ f"~, _~ -~,~ ~~ r > r'~ }`. - S. ~~~~ .~,~ `"• ~.;.~ '~, '~€~ i F:'w ~ i ^ Public/ Private Joint Venture ^ Highest and Best Use Study for alternative land use components ^ Detailed financial business plan for residential conference center ^ Request for proposal for management company for theme park ^ Due to operating losses, the University closed the amusement park but has kept lodge and golf course Southwest Texas State University (University) retained Johnson Consulting to develop a long-range masterplan and to conduct a business plan/ feasibility assessment for specific components of a 94-acre theme park- Aquarena Springs, which the University had recently purchased. The park abuts the University campus and, as the masterplan is built out, it will be integrated into the University's campus. The team assembled by us, as lead consultant, included architects, engineers, and planners. San Marcos and the University are in Texas' popular Hill Country. The site is characterized by outstanding geology and relief, located at the point where the Hill Country meets the Edward's Aquifer. The park was run down. It has several rides, glass bottom boat tours, two restaurants, anine-hole golf course and some retail. The University's vision, which the team defined, contemplates a conference center, lodging, an expanded and upgraded golf course and improved attractions, as well as a generally enriched environment for the University. Six East Monroe • Suite 500 • Chicago, Illinois 60603 • Phone: 312.444.1031 . Fax 312.444.1125 www.chjc.com • info@chjc.com i Town of Vail Conference Facility 20-J1iN-03 OVERVIEW of the FIRM Architectural Resource Consultants, Inc. (ARC) was founded in 1984 in Boulder, Colorado, and incorporated in 1986. Our firm employs between ten and twenty personnel on sites throughout Colorado. About half of this staff provides pre-construction services. These include, but are not limited to owner's budget and tracking system set-up, master and sub-project scheduling, value engineering, guaranteed maximum price validation and constructability review of design documents. We also assist owners in selecting architects and general contractors, as well as ' negotiating their contracts, with an eye towards increasing accountability of the design and construction team. ARC utilizes over half of our team members at multiple sites throughout Colorado providing construction services on over $120 million worth of construction. This includes but once again is not limited to providing monitoring, tracking and project status reports, schedule analysis, change order negotiations and validation, pay application analysis, etc. ARC has completed over six (6) billion dollars in construction project control consulting in more than a decade. In the process we have saved literally millions of dollars for owners. These savings have been achieved through "owner-friendly" :procurement process design, value engineering, design document constructability review and contractor contract price validation. In the process, ARC has generated a great deaf= of respect from owners, designers, general contractors and subcontractors for our proactive approach in problem prevention, thorough, detailed cost analysis and budget tracking reports. ' Mountain construction ro"ects areas ecific s ecialt ofAF!C. P J A P Y ' We have demonstrated an outstanding ability to bud~cLet, schedule, and control numerous municipal projecfs. ' Navigating the political waters of these projects successfully, as well as bringing these projects in on time and under budget proves ARC's people and methods deliver results. • Quality projects of unsurpassed standards as well as hard-nosed savings can both be ' found on our Mountain project resume. In conclusion, ARC has proven track record of benefits that accrue to the owner, their project, ' and their project ream the project control consultant are numerous, and each of .these contribute to providing value for the owner's construction dollar throughout the project. Aochiteaural Resource Consultants, Inc. .. awe.:m . ~~a... co ww . i.wwwxw. r..,waws+me M:Marketing\Proposals\Cu rrentProposal s\TownofVai I Conferen ce Faci I ti ty\ ' OverviewoftheFirm-Mt.Experiencel7JUN03 Town of Vail Conference Facility Christopher J. Squadra, CPE Principal In Charge Education • International Business, University of Colorado, Boulder, CO Expertise • Owner's Budget Preparation • Scheduling • Budget Tracking • Cost Estimating • Contract Law • Claims Avoidance • Procurement • Proformas & Cash Flows Certifications & Memberships • ASPE Certified Cost Estimator • OSHA -10 hour Certification • American Society of Professional Estimators Rocky Mountain Chapter -1990 • Construction Specifications Institute - 1990 • Project Management Institute - 1998 • SAVE International - 1993 • CASBO (Colorado & International) Training/Seminars • AIA Guest Lecturer • ASPE Guest Lecturer • University of Colorado Engineering Department Guest Lecturer • Advanced Scheduling Trainer • Prolog Extranet • Timberline • MS Project • Expedition • Contract Law 20-JUN-03 Mr. Squadra is the founding principal of ARC, and one of Colorado's proven leaders in providing project controls. His value added is evidenced by his lengthy track record of successfully completed projects and extremely satisfied client base. Sample of Mountain Project Controls Experience Town of Vail Vail, CO Hubsite Conference Center $45.3 Million 110,000 sf Contact: Mr. Russell Forrest Vail Town Center $209.7 Million 1.1 million sf Contact: Mr. Russell Forrest Multiple Parking Alternatives $31.1 Million 19 Structured & Surface Parking schemes Contact: Mr. Russell Forrest Middle Creek Village $24.4 Million Affordable Housing Contact: Nina Timm Donovan Park & Pavilion $6.4 Million West Vail Recreation Site Contact: Mr. Todd Oppenheimer Public Works Facility Expansion $1.1 Million Addition and Renovation Contact: Mr. Greg Hall Snow Melt at Vehicular Paving $2.9 Million 144,600 sf Contact: Mr. Denis Beaudin Catellus Development Corporation $72.9 Million Village At Avon Mixed use, Retail and Infrastructure Avon, CO Contact: Mr. Eric Peterson Orient Express Hotels $14.4 Million Lodge at Vail Expansion Vail, Co Contact: Mr. John Valponi Architectural Resource Consultants, Inc. u~o.,.w a...... a,..:m . e..w.., c . iwwwH.. w uww.r~we Town of Vail Conference Facility Mark Huff Senior Project Manager Education • Construction Management, Electrical Engineering Indiana State University • Graduate level study of Industrial Engineering Georgetown University • Continuing Education: George Mason University Georgetown University Expertise • Owner's Budget Preparation • Scheduling • Budget Tracking • Cost Estimating • Contract Law • QA\QC Materials Testing • Claims Avoidance Certifications & Memberships • Virginia Class A General Contractor's License • US Corps of Engineers Certified in Quality Control Systems Management (1995) • Electrical Inspector's Certification • TQM Level One certified • Continuing Education to become ISO 14000 certified auditor Training • IEEE Education Programs • BOCA/NFPA Training • Multiple ADA Lectures • QA\QC Materials Testing • Claims Avoidance 20-JUN-03 Mr. Huif's resume of projects spans seven continents and over two decades of diverse and challenging project control situations. His commitment to excellence, client satisfaction and on time and under budget performance goes unmatched in ARC's experience. The assignment of Mr. Huff to your next project will help ensure definitions of success are created and met for the entire project team. Town of Vail Hubsite Conference Center 110,00 sf Vail, CO Contact: Mr. Russell Forrest Town of Vail Multiple Parking Alternatives 19 Structured & Surface Parking Schemes Contact: Mr. Greg Hall Catellus Development Corporation Village At Avon Mixed Use, Retail and Infrastructure Avon, CO Contact: Mr. Erik Peterson Jacobs Entertainment The Lodge Casino Major Hotel and Gaming Facility Black Hawk, CO Contact: Mr. Dave Gruenenwald Roll International, Inc. The Little Lake Lodge 20,000 sf Custom Residence Aspen, CO Contact: Ms. Beth Cocari $45.3 Million $31.1 Million $72.9 Million $69.1 Million Confidential Amgen Biotech Manufacturing Confidential Lake Centre & Longmont Facilities Multiple extremely difficult, complex projects Longmont and Boulder, CO Contact: Mr. Troy Tyler Architectural Resource Consultants. Inc. ,.,.w... -,-..~.,,,..,.~~..~p..,.~...,,~....~~,~.,p. r, COMMON SENSE SOLUTIONS FOR COMPLEX PROBLEMS C 0 0 onventional Wisdom Corp was formed in 1997 in Orlando, Florida to pro- vide specialized programming, management, and operations consulting ser- vices to the owners, operators, planners, designers and builders of convention cen- ters, conference centers and other assembly facilities. Conventional Wisdom's founders, David O'Neal and Richard Schmidt, have 40 years of combined experi- ence in the management, operation, planning, design, and construction of public facilities throughout North America and Asia. Conventional Wisdom's broad per- spective provides "common sense solutions for complex problems" related to the development of these large-scale, specialized projects. The firm provides experience and knowledge gained from the analysis and develop- ment of dozens of assembly facilities, each with its unique set of circumstances and goals. The services provided through Conventional Wisdom are tailored to meet the needs and budget of the client. Some of the specific services offered are planning services, program and project management and facility evaluations. Conventional Wisdom assists in identifying market potential and developing the right mix of facilities to meet that market demand. Planning activities may include market and feasibility studies, establishing and sizing the key functional elements and devel- oping aphased master plan. Once that information is assembled, an architectural program can be developed that includes a list of spaces along with their approximate size, detailed physical and systems requirements, and diagrams establishing func- tional relationships among the major elements. Architectural conceptual sketches may be developed if a specific site has been identified for the proposed facility. COMMON SENSE SOLUTIONS FOR COMPLEX PROBLEMS fl i. he final stage of the planning process is determining the most advantageous method to complete the design and construction of the project. Conventional Wisdom has assisted in developing and administering unique project delivery meth- ods; from developer competitions to design/construction management with a guar- anteed maximum price. Services include consultant selection and contract negotia- tion, developing project scope, budgets and schedule, and managing the contracts for design and construction as an owner's representative. Conventional Wisdom reviews proposed designs for operational impact, constructability, appropriate use of materials, and compliance with program and budgets. Conventional Wisdom's staff also can assist with identifying and procuring the furnishings, fixtures and equipment necessary to operate the facility. By evaluating on-going operations, Conventional Wisdom can help identify and resolve operational problems, assist with capital improvement planning and budget- ing, and advise on the impacts of the Americans with Disabilities Act. Because of the building operations experience of its principals, Conventional Wisdom is qualified to review and advise on management policies, organizational structure, vendor con- tracts and other related business matters. RELATED PROJECT EXPERIENCE ~r~~~U : F ~y>,,'~~ Austin (TX) Convention Center Expansion Bayfront Plaza Convention Center Boston Convention & Exhibition Center Cancun Convention Center, Mexico Cleveland Convention Center Expansion COEX, Seoul, Korea Connecticut Convention Center, Hartford Coralville (IA) Convention Center Dallas Convention Center, Phase 5 Expansion David L. Lawrence Convention Center Expansion, Pitts Detroit Metro Facilities Study Fort Worth Convention Center Honolulu (HI) Convention Center Jackson (MS) Convention Center Miami Beach (FL) Art Deco District Conference Center Massachusetts Regional Facilities Study Midwest Express Center, Milwaukee, Wisconsin Mississippi Coast Coliseum/Convention Center, Biloxi Mississippi Telecommunication Conference Center Ocean Center Expansion, Daytona Beach Orange County (FL) Convention Center Phases II, 2A, III and IV, Orlando, Florida Osceola County Convention Center, Kissimmee, Floric Osceola County Ag Center Overland Park (KS) Convention Center Palm Beach (FL) Convention Center Palmetto Expo Center, Greenville, South Carolina Phoenix Civic Plaza Expansion Puerto Rico Convention Center, San Juan Queen Sirikit National Convention Center, Bangkok San Diego Convention Center Expansion Schaumburg Hotel and Convention Center SouthTowne Exposition Center, Sandy, Utah Tacoma (WA) Convention Center P=Prime C=Consultant S=Staff Experience = ~~ ~~~ ~-° ~ c~ ~ ~~ ~ _~ .~ ~, ~ ~; ~~ ~ C P P P P P C C C C P, S P, S P, S P, S C C C C C C C C C P P C C C C C C C C h P P P P P C C C S P C C C S C C C C S S S S S S C C C C C C C S S S S S S S S P P P P P P P P P P P P P P P S S S C C C C C P P P P P P P S S S S S S S S S S S S C C C C C C P P P P PEOPLE DAVID P. O'NEAL, Chairman Mr. O'Neal is Chairman and co-founder of Conventional Wisdom Corp. As an advisor to designers, builders, and governmental owners, he has helped develop strategic implementation plans, operational design criteria, review management practices, policies, and proce- dures; and analyze facility markets. He has served as a strategic plan- ning and programming consultant to the major convention centers in Boston, Dallas, Orlando, Phoenix, San Diego, and Seoul. He previous- ly served as the Executive Director of the Orange County Convention Center in Orlando, where he oversaw two expansion projects and developed the master plan for two additional expansion phases, bring- ing that facility to 1.1 million square feet of exhibition space. His commitment to this industry is exemplified by his active contributions through numerous presentations on facility construction, marketing, mainagement, and operations to groups including the American Society of Association Executives, International Association of Assembly Managers, International Association for Exposition Management, Professional Convention Management Association, Urban Land Institute, American Planning Association, Society for Marketing Professional Services and Asia Pacific Exhibition and Convention Council. Mr. O'Neal is also an active lobbyist and promoter of legisla- tive issues benefiting convention facilities and the hospitality industry. Recent Project Experience Project Executive, Phoenix Civic Plaza Master Plan and Expansion Phoenix, Arizona. Project Executive, Osceola County Convention Center Kissimmee, Florida. Project Executive, Mississippi State Telecommunications Conference Center, Jackson, Mississippi. Operations and Marketing Consultant, Virginia Beach Convention Center, Virginia Beach, Virginia. Operations and Marketing Consultant, Greater Tacoma Convention & Trade Center, Tacoma, Washington. Operations and Marketing Consultant, Connecticut Convention Center, Hartford, Connecticut. Operations and Marketing Consultant, Corpus Christi Convention Center, Corpus Christi, Texas. Operations and Marketing Consultant, Dallas Convention Center Dallas, Texas. Project Executive, Koyang International Exhibition Center Seoul, Republic of Korea. Project Executive, Puerto Rico Trade & Convention Center San Juan, Puerto Rico. Project Executive, Austin Convention Center Austin, Texas. Project Executive, Boston Convention & Exhibition Center Boston, Massachusetts ~'° » ~. ~~ .~ B S, Bus press Administration, Grand Valle State Universit > ~~~ n v RELATED PROJECT EXPERIENCE [1 1 u D n DAVID P. O'NEAL~ Chairman Project Executive Phoenix Civic Plaza Master Plan, Phoenix, Arizona. Led anine-firm, multi-disciplined consulting team to study the various site and configuration alter- natives for the long-term expansion of the Phoenix Civic Plaza. The viable project alternatives had to meet pre-determined criteria for program space, expandability, project budget, and phasing, at minimal disruption to clients, surrounding developments and the hospitality infrastructure that depends upon the operation of the facility. The Consulting Team included all past work and studies, as well as new information in preparing the alternatives. The information was presented in a logical progression that allowed all parties to make informed decisions. The team interacted on a regular basis over aone-year period with City staff members, community leaders, elected officials, various user groups and clients, and representatives of the hospitality community to discuss the alternatives available to meet the project criteria and build a consensus. Through this process, unanimous sup- port was given to the master plan documents and the implementation strategy that accompanied them. Project Executive Osceola County Convention Center, Kissimmee, Florida. Headed amulti-disciplined consulting team that produced an implementation plan that included a complete market and economic assessment, operating proformas for the three public assembly facilities located in the County, updated tax collection projections, provided financing strategies and alternatives, established programmatic, cost and schedule information, and created apublic/private partnership process that caused the development of a 500,000-square-foot convention center along with an 800-room headquarters hotel. Development teams were solicited to provide the land for the hotel, convention center, parking and future expansion. The County provided funds to cover the cost of building the convention center. The Development teams were given the option of con- structing and operating the convention center. This innovative approach was one that could only work within a few selected markets nationwide. Project Executive Mississippi State Telecommunications Conference Center, Jackson, Mississippi. One of the leaders of the Feasibility, Programming and Design team for a new telecommunications center, funded by the State of Mississippi, and placed in the home of Worldcom and a new Nissan truck assembly plant. The Telcom Center will serve as a multimedia center to support the training activities of three distinct market segments: local and regional businesses, educational institutions, and the meetings/convention industry. The facility is designed to become integrated with the first phase of the planned Jackson Convention Center, and will serve as its technological hub. Operations and Marketina Consultant Greater Tacoma Convention & Trade Center, Tacoma, Washington. Provided strategic development and planning assistance for the new convention center located adja- cent to the University of Washington -Tacoma, in the revitalized Thea Foss waterfront area. In addi- tion to facility planning and design review, CW has provided an extensive list of management sup- port services for the new facility including organizational and staffing analysis, marketing assistance, operational policies and procedures, pricing strategies and competitive analysis. RELATED PROJECT EXPERIENCE DAVID P. O'NEAL~ Chairman Proaect Manager Puerto Rico Convention Center District, San Juan, Puerto Rico Provided organizational, logistical and legislative input for the development and operation of the conven- tion center district. The 100-acre district is a mixed-use development containing a 500,000 square foot convention center, 1,600 hofel rooms, a World Trade Center, commercial, retail, office and residential spaces. The first phase of the project combines $450 million in public and private investment and is sched- uled for completion in 2002. Subsequent phases will permit the tripling of the areas contained within the initial phase. Project Executive Boston Convention & Exhibition Center, Boston, Massachusetts Directed consulting team comprised of twenty firms charged with performing amulti-disciplined develop- ment plan for a new convention and exhibition center for the Commonwealth of Massachusetts and the City of Boston. The two-phased report discussed market, economic, site, facility, community, financing, construction and operating strategies. The 1.8 million square foot center includes 600,000 square feet of exhibition space, a 60,000 square foot ballroom, 175,000 square feet of additional meeting space and parking for 2,000 cars. Executive Director Orange County Convention Center, Orlando, Florida Administrator of one of the nation's largest and most-successful convention centers. Initiated and imple- mented long-range facility planning and programming; which increased the size of the convention center to over one million square feet of exhibition space. Established innovative marketing and promotional strategies; set new industry standards for quality and levels of client servicing, staff development, lease agreement terms, pricing for space, personnel, and services. Created and revised organizational structure, lead facility master plan programming, provided direction to design and construction teams as project director during two expansion phases. ' RICHARD SCHMIDT, President PEOPLE ' Mr. Schmidt has over 25 years of specific experience in the areas of conc:eptua) and land use planning, programming, budget and schedule analysis, and feasibility studies. He has served as project executive, pro- ' gram manager, project manager, planner and architect for convention centers, airports, office, commercial and educational buildings, high- rise parking structures, and residential communities. ' Related Experience Planning and Program Consultant, Phoenix Civic Plaza Expansion Phoenix, Arizona. ' Program and Technical Consultant, Tacoma Convention & Trade Center, Tacoma, Washington. Program Consultant, Osceola County Convention Center Kissimmee, Florida. ' Project Executive, Overland Park Convention Center Overland Park, Kansas. ' Program and Technical Consultant, Virginia Beach Convention Center Virginia Beach, Virginia. Program and Technical Consultant, Dallas Convention Center Expansion, Dallas, Texas. ' Program and Technical Consultant, Galveston Island Convention Center, Galveston, Texas. Program Consultant, Mississippi State Teleconference Center Jackson, Mississippi. ' Program and Technical Consultant, Koyang International Exhibition Center, Koyang City, Kyonggi Province, Korea. ' Technical Consultant, SouthTowne Exposition Center Sandy, Utah. TecFinical Consultant, Korea World Trade Center (COEX) Seoul, Korea. ' Technical Consultant, Telus Convention Centre, Calgary, Alberta, Canada. Technical Consultant, Austin Convention Center Expansion Austin, Texas. ' Assistant Project Manager, Puerto Rico Convention Center District San Juan, Puerto Rico. Project Executive/Manager/Planner, Orange County Convention ' Center. Expansion Program, Phases III and IV, Orlando, Florida. cation ' B.A. Design, University of Florida M.A. Architecture, University of Florida M.S. Management, Rollins College Registration ' Registered Architect: Florida, Colorado, California NCARB Certificate I1 n RELATED PROJECT EXPERIENCE ' RICHARD SCHMIDT, President Planning & Program Consultant Phoenix Civic Plaza Expansion, Phoenix, Arizona ' Multi-phased redevelopment of existing convention center and symphony hall on ahigh-density urban site. Project funding requires phased construction to minimize business disruption and matching $300 million contributions from the City and State. Services included evaluating alternate sites, developing long-term ' master plan, conceptual budgeting, programming and assistance with design and construction procure- ment and implementation. ' Program & Technical Consultant Tacoma Convention & Trade Center, Tacoma, Washington The convention center is a key component to public investment in the redevelopment of downtown Tacoma that includes several museums, a hotel and a new campus for the University of Washington linked by a new light rail system. To be run by the public Facilities District in conjunction with the Tacoma Dome, the initial phase includes 50,000 square feet of exhibition space, 12,000 square feet of meeting rooms and ' a 13,500 square foot ballroom. P E roject xecutive Overland Park Convention Center, Overland Park, Kansas ' This public private partnership combines a 414-room hotel with a 235,000 square foot convention cen- ter under a development and operating agreement. The City will invest up to $60 million in the complex. ' Program & Technical Consultant Osceola County Convention Center, Kissimmee, Florida New convention center to be delivered and operated by a private developer in partnership with the County. Served as technical and program advisor to Osceola County to define scope of the project, assist in final- ' izing developer contracts and oversee design implementation. The County's $98 million investment pro- vides 250,000 square feet of exhibition space with the requisite meeting, banquet, support space and parking. ' Program & Technical Consultant Virginia Beach Convention Center, Virginia Beach, Virginia ' On-site redevelopment replaces an outdated convention center with an architectural icon tripled in size with planned expansion options for the City of Virginia Beach. Served as operations and technical con- sultant to the architect/ engineer, Skidmore, Owings and Merrill, providing the architectural program, ' design reviews and ongoing operational assistance to the City. Technical Consultant Connecticut Convention Center, Hartford, Connecticut ' Mixed-use downtown redevelopment of convention center, hotel, residential and retail complex Adriaen's Landing. Served as technical advisor to the Waterford Group, the master developer of the project and ' operator of the convention center and hotel elements. Technical Consultant Korea World Trade Center, Seoul, Korea ' Conversion and expansion of existing trade mart to convention and assembly uses. Served as operations and technical consultant to the architect/ engineer, Skidmore, Owings and Merrill. Services included design workshops with systems engineers for lighting, audio/visual and telecommunications. PEOPLE JIMMY IAIARD, AIA ' Mr. Ward's unique skills were acquired during his 24 years with the architectural firm of Thompson, Ventulett, Stainback & Associates in Atlanta. While at TVS&A, his primary focus was on the functional design and development of convention and meeting facilities. He was on the design team for Phase I of the Georgia World Congress Center in Atlanta, as well as the Phase II & III expansions. His master planning and design efforts have also been realized in centers such as Miami ' Beach, Ft. Lauderdale, Philadelphia, Washington, DC and Orlando. A member of Conventional Wisdom since 1998, Mr. Ward offers a Grit- ', ical overview, objective insight and invaluable enhancement to the '~ works of local and nationally renowned design professionals. He pro- vides assistance to Owners to ensure that their convention centers meet the high standard of design and operational excellence. Related Ex erp fence ' Galveston Island Convention Center (Kirksey) Virginia Beach Convention Center (SOM, Chicago) Dallas Convention Center Expansion (SOM, Chicago) Austin, TX (Page Sutherland Page) ' Dallas, TX (SOM, Chicago; HKS) Sari Juan, Puerto, Rico (TVS&A) Corpus Christi, TX (TVS&A; ARQ) Jackson, MS (ARQ) Virginia Beach, VA (SOM, Chicago) Koyang City, South Korea (SOM, Chicago) Overland Park, KS (TVS&A; DLR Group) ' Hartford, CT (TVS&A) Pittsburgh, PA (Critique, Design Competition) Related Experience with TVS&A Orange County Convention/Civic Center Master Plan, Phases III, IV, & V including Phases I & II, Orlando, Florida. Orange County Convention/Civic Center Expansion, Phase III Orlando, Florida. Miami Beach Convention Center, Renovation/Expansion ' Miami Beach, Florida. Braward County Convention Center, Ft. Lauderdale, Florida. ' The; New Washington, DC, Convention Center Georgia World Congress Center, Phase I, II, & III Pennsylvania Convention Center Ed~ucatson Bachelor of Architecture, Auburn University, Auburn, Alabama. Registration Registered Architect: Georgia ~, ~~ f {~ ~ ~, ~. si ' ~_ ~ °- '~ `j ~! _ . €~ . ROBERT 5. BENTON, ISHC 16021 Relic Rock Terrace Parker, Colorado 801.34 (303)840-1666 ' EXPERIENCE ROBERT 5. BENTON & ASSOCIATES, INC. Parker, Colorado 1992 to present Provide real estate consulting and appraisal. services to developers, investors and ' lending institutions of hospitality properties. Co-sponsor of the Rocky Mountain Lodging Report, a monthly lodging survey summarizing market conditions in the states of Colorado, Utah, New Mexico and ' Wyoming. PANNELL KERR FORSTER, Denver, Colorado Manager, Hospitality Consulting 1983 -1991 ADDITIONAL EXPERIENCE While completing undergraduate studies, held various positions within the hospitality industry. ^ The Petroleum Club, Denver, Colorado (1983) ^ Ramada Renaissance, Aurora, Colorado (1982 -1983) ^ El Rancho Restaurant, Golden, Colorado (1979 -1982) ' ^ Ramada Inns, Inc., Culver City, California (1978 - 1979) AREAS OF EXPERTISE ^ Market and Economic Feasibility Analysis for Hotels, Resorts and Golf Courses ' ^ Real Estate Appraisal of a Variety of Hotels, Resorts and Golf Courses ^ Hotel Supply and Demand Analysis ^ Hotel Income and Expense Analysis and Forecasts ' ^ Hotel Site Selection and Analysis ^ Renovation and Conversion Studies ^ Litigation Support and Research ^ hotel Market Position Analysis and Franchise Selection EDUCATION MBA -University of Denver, Denver, Colorado. Specialization in Real Estate -Finance. Graduation Date: March 1988. BSBA -University of Denver, Denver, Colorado. Specialization in Hotel and Restaurant Management with an emphasis in marketing and finance. Graduation Date: March 1982. ' Appraisal Institute ^ Real Estate Appraisal Princil.~les ^ Basic Valuation Procedures ^ Capitalization 1 henry & Techniques, Part A & B ^ Case Studies in Real Estate Valuation ^ Standards of Professional Practice ' MEMBERSHIPS ^ International Society of Hospitality Consultants ^ Colorado hotel & Lod~,ring Association ' ^ New Mexico Hotel & Motel Association I 0 [] C ROBERT S. BENTON Representative Clients and Assi~truents Academy Three Partnership II, Ltd. Airport Express Associates American Realty Finance Corporation AMFAC Parks & Resorts AMFAC Parks & Resorts Aurora Economic Development Council Bank of America Bass Hotels & Resorts Bass Hotels & Resorts Bass Hotels & Resorts BAT Investments Bedrock Partners Carpenter, Crout and Olmstead Cendant Corporation Chandler West Development Corporation Chandler West Development Corporation Davis Graham & Stubbs Davis Graham & Stubbs East West Resorts Appraisal of the Radisson Inn-North Colorado Springs in Colorado Springs, Colorado Market Study for a Proposed All-Suite, Upper-Budget Hotel to be Located near the Salt Lake International Airport in Salt Lake City, Utah Appraisal of the Evergreen Lodge Located in Vail, Colorado Market Position Study for the Furnace Creek Resort Located in Death Valley National Park, Death Valley, California Market Study for a Proposed Nature-based Resort to be Located on Lake Kissimmee, Osceola County, Florida Concept Development, Market and Financial Feasibility Analysis, and Facility Recommendations for a Proposed Hotel to be Located at the Intersection of Interstate 70 and Pena Boulevard in Aurora, Colorado Appraisal of a Package of Travelers Inns Located in Various Cities in the Western United States Market Study for a Proposed Staybridge Suites to be located in Lonetree, G~lorado Impact Study on the Holiday Inn-Gillette from the Proposed New Development of a Holiday Inn Express to be Located in Gillette, Wyoming Impact Study on the Holiday Inn-Grand Junction from the Proposed New Development of a Holiday Inn Express to be Located ui Fruita, Colorado .Market Study for a Proposed Residence Inn by Marriott to be Located in Provo, Utah Market Study Regarding the Renovation and Conversion of the Ramada Inn- Midto~m, Denver, Colorado to a Wyndham Garden Hotel Appraisal of the La Fonda Hotel Located in Santa Fe, New Mexico Impact Study on the TraveLodge at Temple Square and TraveLodge City- Center from the Proposed Conversion of the Airport Inn & Suites to a TraveLodge Hotel in Salt Lake City, Utah Concept Development, .Market and Financial Feasibility Analysis and Facility Recommendations for a Proposed Convention Center Headquarters Hotel to be Located in Denver, Colorado Concept Development, Market and. Financial Feasibility Analysis and Facility Recommendations for a Proposed Convention Center Headquarters Hotel to he Located in St. Louis, Missouri Litigation Support for Holiday Corporation Regarding Holiday Corporation vs Histrio Investors Litigation Support Estimating Lost Profits as a Result of Construction Delays at a Hotel in .Aurora, Colorado Various Assignments regarding Hotels and Condominiums in the Colorado Mountain Resorts ROBERT S. BENTON Representative Clients and Assigttments (Cont.) Gallop Development, LLC. Heller Financial Hilton Hotels Corporation Hilton Hotels Corporation Highlands Hospitality, LLC. Hotels of America Industrial B:mk of Japan Jackson Hole Ski Corporation Kitrxpton Hotel & Restaurant Group, Inc. Kimball Investment Company La Quints Inns, Inc. La Quints Imxs, Inc. Lodgian, Inc,. Lodigian, Inc. Lodigian, Inc. Lodging Development Company Macy Development Company Manor Care Hotels Manor Care Hotels Manor Care Hotels Market Study for a Proposed Homewood Suites by Hilton to be Located in Downtown Denver, Colorado Appraisal of the Oxford Hotel Located in Downtown Denver, Denver, Colorado Market Study for a Proposed Hilton Garden Inn to be Located in the Briargate Business Campus in Colorado Springs, Colorado Market Study for a Proposed Hilton Garden Inn to be Located in Gateway Park in Aurora,Colorado Market Study for a Propvsed Hilton Garden Inn to be Located in the Highlands Ranch Business Park, Douglas County, Colorado Market Study for a Proposed Fairfield. Inn to be Located in the Salt Lake International Center, Salt Lake City, Utah Market Study and Appraisal for a Proposed Luxury Hotel to be Located in Aspen, Colorado Market Study for a Proposed Ilotel to be Located at the Base of the Jackson Holt. Ski Area, Teton Village, Wyoming Market Study and Appraisal for the Proposed Hotel i1'Ionaco to be Located in Dow~xxtown Denver, Colorado Market Study and. Appraisal of the Clarion Motel & Suites to be Located in Salt Lake City, Utah Preliminary Study of Potential Market Demand for a Proposed La Quints Inn & Suites to be Located in Grand Junction,Colorado Preliminary Study of Potential Market Demand for a Proposed La Quints Inn & Suites to be Located in Colorado Springs, Colorado Market Study for a Proposed Marx-iott Hotel to be Located in Gateway Park in Aurora, Colorado Market Study for a Proposed Residence Inn to be Located in Little Rock, Arkansas Market Study for a Proposed Hilton Garden Inn to be Located in Riv Rancho, T\ ew Mexico Market Study for a Proposed Hampton Inn & Suites to be Located in Summit Count, Utah 1Vlarket Study for a Proposed Residence Inn by Marriott to be Located in Longmont, Colorado Market Study for a Proposed .Expansion to the Quality Inn-Midvalley Located in Salt Lake City, Utah. Market Study fcxr a Proposed Sleep Inn to be Located in the Southeast I-25 Corridor, Greenwood Village, Colorado Market Study for a Proposed Sleep Inn to be Located in Gateway Park in Aurora. Colorado ROBERT S. BENTON Representative Clients attd Assigtnnents (Cont.) Manor Care Hotels McWhinney Colorado Enterprises Norwest, Colorado P&M, LLC. Park Properties,. Inc. Santa Fe Lodgers Association Schepps New Mexico Sherman & Howard Sitzman-Mitchell & Co. Scott Coburn & Associates Scott Hotels Steamboat Ski and Resort Corporation The Boulder Creek Company Thornton -City of, Colorado U.S. Development Vail -Town of, Colorado Western States Lodging and Development Western States Lod~ir-g and Development Wheeler Commercial Property Services Wyndham Hotels & Resorts Market Study far a Proposed Sleep Inn to be Located in El Paso, Texas Market Study for a Proposed Courtyard by Marriott to be Located in Loveland, Colorado Appraisal of the Hotel Boulderado Located in Boulder, Colorado Litigation Support for P&M, LLC., for P&M, LLC. vs Colorado Farm Bureau and David K. Amin Litigtion Support Estimating Lost Profits Attributable tc- Construction. Delays at the Winter Park Mountin Lodge in Winter Park, Colorado Compensation and Benefit Survey of Hotels in Santa Fe, New Mexico Market Study for a Proposed Hotel to be Located in Taos,New Mexico Litigation Support Estimating Lost Profits Attributable to Construction Deficiencies at Three Hotels Located in Denver, Colorado Various Market Studies for the Marriott Hotel, Courtyard by Marriott, and Residence Inn 1-y Marriott Located in Fort Collins, Colorado Market Study for a Proposed Boutique Ilotel to be Located in Downtown Golden, Colorado Market Study for the Renovation and Conversion of the West Vail Lodge to a Hampton Inn & Suites, Vail Colorado Market Study for a Proposed Hotel to be Located at the Base of the Steamboat Ski Area, Steamboat Springs, Colorado Market Study axed 9I-praisal far the Proposed Sheraton Hotel to be Located in Boulder, Colorado Study of Potential Market Demand. and Development Timing for a Proposed Hotel-Conference Center to be located in the Thornton City Center, Thornton, Colorado Market Study for a Proposed Mixed-use Development, Including a Homewood Suites, to he located in Downtown Salt Lake City, Utah Study of Poten. tial Market Demand far the Proposed Vail Valley Performance and Conference Center (Conference Center only) to be located in Vail, Colorado Market Study for a Proposed Fairfield Inn by Marriott to be Located in Woods Cross, Utah Market Study for a Proposed Extended-Stay Hotel to be Located in the Southern Portion of the Salt Lake City Metropolitan Area, Salt Lake City, Utah Market Study and Recommendations Regarding a Hotel and Conference Center to he located on the University of Wyoming Campus, Laramie, Wyoming Market Overview of the Northeast Denver Lodging Market, Denver, Colorado ~ i ~ ~ ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ Market Analysis and Business Plan: Vail Conference Center ._ resente tote Town o a ~ _ .~ ~• ~ ~~. r - M- Johnson Consulting, Inc. ~ ~=~- :..~ _o y- Robert S. Benton & Associates Conventional Wisdom Corp. ~ :. :~ _. Architectural Resource Consultants -- ~ ; -~- (TVS&A / vAg, Inc. July 29, 2003: Three Stages in Real Estate Development ConCeptua/ization . Feasibility study and strategy development ^ Concept and cost study . Economic and fiscal impact analysis ^ Funding strategy ^ Defini ion of next steps Commitment • Refined project definition ^ Refined program and cost study ^ Phasing analysis 3 ^ Specific funding plan ^ Partner identification ~ .and. solicitation F Imp/ementation ^ Transaction E assistance ^ Initiating operations ^ Monitoring project i'n .Fight of strategy and budget 2 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ Study Questions ^ What is the potential demand for a conference center? ^ What is the most appropriate size to capture the potential demand and produce a financially sound center? ^ How should the building be programmed related to meeting, ballroom, and exhibit space and quality? ^ Are there operational and marketing relationship enhancements that should be considered? ^ What is the projected financial performance of the conference center? ^ What are the possible and appropriate design and environmental standards that should be met to maximize the site and be LEEDs certified? 3 Roles of the Various Team Members o nson RSBA C Wisdom ARC A) Market Anal sis A.1: Lod in Review 8 15 A.2: Econ performance of other conference centers 16 16 A.3: Surve Conf Planners 18 16 A.4: Seasonal Demand 6 6 A.S: Economic Impact 22 4 A.6: Size of Center 10 12 A.7:+/- of a lar er conf center 10 4 4 A.8: Review of closed centers 18 4 A.9:Market rowth 18 4 A.10: Alternative to increase room nights 8 4 4 Draft Preparation 30 6 4 Final Draft Preparation 16 2 2 B) Business Plan 6.1: Proposed Physical program 8 56 6.2 Refine capital budget 0 8 36 6.3: Personnel Needs 4 4 B.4: 20 Year Bud et 20 4 B.5: Capital Replacement Bud et 4 8 4 B.6: Operation Deficit 8 4 B.7: Hotel bookin polic 6 2 6.8: Proposed marketingplan and costs 4 6 B.9: Other cost to support center 8 4 4 B.10: Financial implications of operational failure 14 2 B.11: Bond. Payments. 24 Draft Pre aratioh 72 8 18 4 anal Draft Preparation 4 16 ^ Team will: • Evaluate previous studies • Address strategy • Project demand and financials • Test program and costs • Document business case for implementation purposes • TVS&A wi l address LEEDs specifications 4 i i i i i i i i i i i i i i i i i i i Strategy Questions ^ what do you believe are the pros and cons of moving forward with a conference center? ^ How would you define an economically successful conference center? ^ Are you aware of any opportunities to take advantage of tax benefits in Finking a conference center and a hotel? ^ .what are the effects of the project if existing hotel rooms are converted to fractional/time share uses or condominiums? ^ Ls it reasonable to ask hotels to comrn rooms before the project is built? 5 Strategy ^ Meetings expose people to Vail, smooth seasonality, increase identity Davos ^ Conference center itself - limited demand, but it becomes your "living room" ^ Part of social scene and overall events strategy (Disney, Cape Cod) ^ Multi-product destinations do succeed, but adjacent/ integrated property should be traditional (Myrtle Beach. & ^ Successful operation = 2 room nights per S'F of function space, diversified demand base in nearby hotel(s) - 60% group 40% FIT/ leisure, near break- even operation ^ Room block agreements are important and hotels need to be "trained" to use meetings to their advantage (Meydenbauer Center) ^ Tax-exempt financings -provide a cost of capita advantage; "owner" has different IRR requirements ..Kissimmee vs. Snowmass) 6 Process Questions ^ What original data will you generate compared to depending on existing or historical information, i.e. demand for a conference center? ^ What will be your approach in completing the market analysis with specific respect to soliciting input from conference planners? ^ What conference center projects would be a good comparison to Vail? Also, how will you identify failed conference centers that may be a good comparison? ^ How wall you determine operating costs and revenue potential in Vait, Colorado? ^ Elaborate on your approach to complete the.. business plan. What input will you need frorn this committee and/or the Town? Technical Approach Physics/Ana/ysis Initial Overview • Kick off, field work • Prior report review • CVB Interviews • Funding capacities • Operator interviews- Benchmark, Harrison, IACC, CHJC • Policy Workshop Market and Competitive Position Ana/ysis, ,Draft Report, Meeting • User interviews and surveys- qualitative • ~ ~ • ~.~ market review • Revenue and expense comparisons • Indicated size and phasing, all elements • 14 year demand projection- events, attendance, revenues and expenses • Ex. Hall, ballroom, meeting space, theater • Support and service areas • Parking and hotel linkages • Quality and designations • Image & urban design opportunities • Cost estimates Options Testing • Improvement impact on- - Demand, finances, room nights, spending, tax revenues - Improvement hierarchy, based on contribution analysis • Market positioning impact • Demand and financial projections • Economic and fiscal impact analysis • Cost estimates • Hotel facility relationship • Funding plan • Development schedule • Phasing strategy 8 • Hotel conference center relationship • Urban design opportunities • Operating efficiency opportunities • Leeds assessment Consultant Questions ^ How did your previous studies compare to the actual results of the project? ^ What market analysis projects have you worked on that you recommended not moving forward with the project? What were the previous costs (fees) of other market analysis that you have worked on in the past? ^ Would you reduce your cost because working for Vail has a marketing benefit for your company? ^ Do you have any major assumptions on the time to complete the project that we need to be aware of? ^ Do you have any conflicts of interest? Will .you benefit if this project moves.. forward? ^ Why should we hire you? 9 Consultant Responses ^ We have a good track rei ~~ d of providing accurate ^ We advise clients on the best path for projects and provide _ _ _ _ __ . _- as appropriate. ^ Fees de end on scope- Meyden suer- $57,500, Ocean Center-$100,000., San Juan $1,000,000. ^ Our rates reflect a discount. ^ We are very comfortable with the 10-week time frame and will rely on CVB and Town planning in a reasonable capacity. ^ We have no conflicts of interest. ^ Why should you hire us? See above ! 10 Recent Consulting Team Experience ^ Palm Springs ^ St. Moritz ^ Cape Cod Conference Center ^ Louisville arts hotel ^ Portsmouth historical district ^ Southwest Texas State University, TX _ . ~~,~, ^ Salern, OR ^ Peoria, IL ^ Jackson State University, MS ^ Purdue University Calumet, IN ^ Embry Riddle University, FL ^ Coralville, IA 11 ~ ~ ~ ^~ ~ ~ ~ ^~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ r ~a~~~~~ Switzerland Historical Room Inventory in Osceola County ^Onsite Villa so,ooo Resorts ~ I nd. Condos/ ao,ooo Villas/ Homes 30, 000 ~ Timeshares ~' Campgrounds zo.ooo OHotels/ io,ooo ~,~ i„ Motels/ '' I Suites o '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 ~ ~ ~ l~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Multi-Product Destinations ~ ~ ~ ~ ~ l~ ~ ~ ~ ~ ~ ~ ~ ~ Meydenbauer Center Historical and Projected Characteristics, Demand, an Impac ts Physical Characteristics Current Planned After Addition Expansion Exhibit Hall (SF) 36,000 24,000 60,000 Ballroom (SF) 0 24,000 24,000 Meeting Rooms (SF) 12,000 0 12,000 Theatre (capacity) 410 seats 0 410 seats Parking Capacity (spaces) 434 331 765 Actual 2002 Projected 2010* Demand # of Total # of Total Events Attendees Events Attendees Conventions/ Tradeshows 31 67,596 59 101,500 Consumer Shows 3 17,000 11 65,900 Meeting and Seminars 172 53,941 200 41,400 Banquets 79 35,859 100 54,800 Theater Events 76 45,019 70 40,000 Other/Civic Events 28 38,799 40 50,400 Total Events 389 258,214 480 354,000 Operating Revenues and Actual Projected Expenses (thousands) 2002 2010* Revenues $4,357 $9,907 Expenses $5,404 $10,205 Net Operating Income (Deficit) ($1,047) ($298) Actual Projected Impacts 2002 2010* # of Room Nights 55,000 115,000 "Assuming the development of an adjacent headquarters hotel. Source: Meydenbauer Center, Johnson Consulting ~ ~ ~ ~ ~ Meydenbauer Center ~r„~~.,,~„~~ co.,li,r~rr ce~n, <, s~ s` '~ in ;~ ~~ ,. ' u~s ,+ iii ~ - ~~~L ~~ I ~ '~! -~~ ~_ L-' 1 ~ ~_i1.~ 1~1.;~ World Golf Village The Meydenbauer Center Comparables La Chaminade The Chattanoogan ~ ~ ~ ll~ l~ ~ l~ ll~ ll~ ~ ll~ ~ ~ l~ ~ ~ ~ ll~ ~ PROJECT PROJECTION YEAR ACTUAL YEAR VARIANCE BI-LO Center 1999 1999 Events 133 129 -3% Attendance 873,000 912,704 5% Navy Pier 1999 2000 Events 69 54 -22% Attendance 365,000 343,000 -6% Wisconsin Center District 1999 1999 Events 74 74 0% Attendance 531,000 478,000 -10% Charlotte Conv. Center 1999 1999 Events 56 53 -5% Attendance 751,000 595,500 -21 Source: Johnson Consulting Accuracy in Projections ~ ~ ~ r l~ ~ ~ ~ ~ ~ ~ ~^ ~ ~ ~ i^~ ~ ~ Summary Table of TDT Projections and Collections FY00/01 FY01/02 FY02/03 FY02/03 Collections vs. Collections vs. Actual Actual Projections* 8-Mo. Actual Projections Prior Year Actual (a) (b) (c) (d) (d) vs. (c) (d) vs. (b) OCT $1,778,684 $1,190,455 $1,626,770 $1,573,194 -3.3% 32.2% NOV $1,723,986 $1,198,434 $1,491,206 $1,465,612 -1.7% 22.3% DEC $1,951,076 $1,396,995 $1,581,582 $1,627,657 2.9% 16.5% JAN $1,576,282 $1,439,288 $1,626,770 $1,560,930 -4.0% 8.5% FEB $1,924,253 $1,922,103 $1,943,087 $2,015,803 3.7% 4.9% MAR $2,538,472 $2,761,737 $2,394,968 $2,393,273 -0.1 % -13.3% APR $2,345,054 $2,250,466 $2,191,621 $2,254,162 2.9% 0.2% MAY $1,676,035 $1,698,561 $1,830,117 $1,839,195 0.5% 8.3% JUN $2,177,441 $2,209,733 $2,169,027 JUL $2,315,265 $2,219,124 $2,304,591 AUG $1,770,654 $1,811,227 $1,897,899 SEP $1,236,222 $1,322,322 $1,536,394 TOTAL $23,013,424 $21,420,445 $22,594,034 Year-to-Date Through May 31 $13,858,039 $14,686,122 $14,729,826 0.3% 6.3% 'Johnson Consulting's projetions, June 2003. Source: Kissimmee-St. Cloud CVB, Johnson Consulting Accuracy in projections -~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Strategy Study Results* Percent of Tota I Study Results Affirmative Redirection Negative Tota I *Analyses completed by Johnson Consulting 56% 38% 6% 100% Study Results RESOLUTION #7 SERIES OF 2003 WHEREAS, the Town of Vail has reviewed the Colorado Intergovernmental Risk Sharing Agency ("CIRSA") Bylaws and Intergovernmental Agreement ("Agreement") which constitute a contract to cooperate with other public entities to participate in aself-insurance pool; and WHEREAS, a copy of said Agreement is attached hereto, as Exhibit "A" and incorporated into this Resolution; and WHEREAS, the governing body of the Town of Vail finds that it is lawfully authorized to self-insure and to participate in aself-insurance pool as set forth in said agreement and that such participation would be in its best interests; NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE TOWN OF VAIL: 1. The Agreement is hereby approved, and the authorized signatories of the Town of Vail are hereby authorized to execute the Agreement. 2. Participation in and coverage through CIRSA shall be for the coverage or coverages set forth in the Town of Vail's current application to CIRSA and any future applications to CIRSA. 3. Participation in and coverage through CIRSA as set forth herein shall take effect on the 1St day of July, 2003. 4. A copy of this resolution and the executed Agreement shall be transmitted to CIRSA AT 3665 Cherry Creek North Drive, Denver, CO 80209. ADOPTED AND APPROVED THIS 5TH DAY OF AUGUST, 2003. Ludwig Kurz, Mayor ATTEST: Lorelei Donaldson, Town Clerk SAMPLE RESOLUTION NO. WHEREAS, the Entity Name has reviewed the CIRSA Bylaws and Intergovernmental Agreement ("Agreement"), which constitute a contract to cooperate with other public entities to participate in aself-insurance pool; and WHEREAS, a copy of said Agreement is attached hereto as Exhibit "A" and incorporated into this Resolution; and WHEREAS, the governing body of Entity Name finds that it is lawfully authorized to self-insure and to participate in aself-insurance pool as set forth in said agreement and that such participation would be in its best interests; NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE Entity Name 1. The Agreement is hereby approved, and the authorized signatories of the EntitYName are hereby authorized to execute the Agreement. • 2. Participation in and coverage through CIRSA shall be for the coverage or coverages set forth in the Entity Name's current application to CIRSA and any future applications to CIIZSA. 3. Participation in and coverage through CIRSA as set forth herein shall take effect on the day of 20 4. A copy of this resolution and the executed Agreement shall be transmitted to CIRSA at 3665 Cherry Creek North Drive, Denver, CO 80209. ADOPTED AND APPROVED THIS DAY OF , 20 Authorized Signature Title ATTEST: Authorized Signature Title f y.' ~ BYLAWS AND INTERGOVERNMENTAL AGREEMENT COLORADO INTERGOVERNMENTAL RISK SHARING AGENCY ARTICLE I. Definitions. As used in this agreement, the following terms shall have the meanings hereinafter set out: (1) ADMINISTRATIVE COSTS. All costs of CIRSA other than contributions to a loss fund or a reserve fund. (2) BOARD. Board of Directors of C1RSA. (3) BYLAWS. The Bylaws and Intergovernmental Agreement, Colorado Intergovernmental Risk Sharing Agency. (4) CIRSA. The Colorado Intergovernmental Risk Sharing Agency established pursuant to the Constitution and the statutes of this state by this intergovernmental agreement. (5) CLAIM YEAR. Any twelve consecutive month period established by the Board. (6) DIRECTOR. A person serving on the Board. ----~ (7) EXCESS INSURANCE. Insurance purchased by CIRSA from an insurance company approved by the Insurance Commissioner of the State of Colorado to underwrite such coverage in Colorado providing certain coverage for losses over a prudent amount up to a pre-set maximum amount of coverage. (8) EXECUTIVE DIRECTOR. Executive Director of CIRSA. (9) FISCAL YEAR. January 1 to December 31. (10) INTERGOVERNMENTAL AGREEMENT. The Bylaws and Intergovernmental Agreement, Colorado Intergovernmental Risk Sharing Agency. (11) LOSS FUND. A fund or funds of money established by the Board to pay covered Losses and loss adjustment expenses. (12) MEMBERS. The municipalities and other entities which are authorized to participate in CIRSA pursuant to Article VI of these Bylaws and which enter into this. intergovernmental agreement. (13) RESERVE FUND. A fund or funds of money established by the Board to be used as provided in Article IX of this intergovernmental agreement. (14) STOP LOSS INSURANCE. Insurance purchased by CIRSA from an insurance company approved by the Insurance Commissioner to underwrite such coverage in Colorado Page 1: As Amended June 14, 2000 ~t ~~ providing certain coverage up to a contracted amount for otherwise uninsured losses to be borne by the loss fund, which in any one year aggregate to a pre-set maximum amount of coverage. ARTICLE II. Creation of CIRSA. The Colorado Intergovernmental Risk Sharing Agency, a separate and independent governmental and legal entity, is hereby formed by intergovernmental agreement by its members pursuant to the provisions of 24-10-115.5, 29-1-201 et sue., 29-13- 102, 8-44-101(1)(c) and (3), and 8-44-204, C.R.S., as amended, and Colorado Constitution, Article XIV, Section 18(2). ARTICLE III. Purposes. (1) The purposes of CIRSA are to provide members the coverages authorized by law, through joint self-insurance, insurance, reinsurance, or any combination thereof, to provide claims services related to such coverages, and to provide risk management and loss control services to assist members in preventing and reducing losses and injuries. (2) It is the intent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with these Bylaws, any member of CIRSA against stated liability or loss, to the limit of the financial resources of CIRSA available to pay such liability or loss. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. _. _ (3) All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. (4) This intergovernmental agreement shall constitute the Bylaws of CIRSA. ARTICLE IV. Source of Money; Non-Waiver of Immunity. (1) All CIRSA monies are monies plus earned interest. derived from its members. (2) It is the intent of the members that, by entering into this intergovernmental agreement, they do not waive and are not waiving any immunity or other limitation on liability provided to the members or their officers or employees by any law. (3) No waiver by a member of any immunity or other limitation on liability provided to the member or its officers or employees by any law shall expand the coverages established by the Board. No member shall waive any such immunity or other such limitation on liability without first notifying CIRSA in writing. ARTICLE V. CIRSA Powers. (1) The powers of CIRSA to perform and accomplish the purposes set forth above shall, within the budgetary limits of CIRSA and subject to the procedures set forth in these Bylaws, be the following: Page 2: As Amended June 14, 2000 ') (a) To retain agents, employees and independent contractors. (b) To purchase, sell, encumber and Lease real property and to purchase, sell, encumber or lease equipment, machinery, and personal property. (c) To invest funds as allowed by Colorado statutes. (d) To carry out educational and other programs relating to risk management and loss control. (e) To create one or more loss funds, and to purchase reinsurance, excess insurance and/or stop loss insurance. (f) To establish reasonable and necessary loss control standards and procedures to be followed by the members. (g) To provide risk management and claim adjustment or to contract for such services, including the defense and settlement of claims. (h) To carry out such other activities as are necessarily implied or required to carry out the purposes of CIRSA or the specific powers enumerated in these Bylaws. --~~ (i) To sue and be sued. (j) To enter into contracts. (k) To reimburse directors for reasonable and approved expenses, including expenses incurred in attending Board meetings. (1) To purchase fidelity bonds from an insurance company approved by the Insurance Commissioner of Colorado to do business in Colorado. (m) To process claims, investigate their validity, settle or defend against such claims within established f nancial limits, tabulate such claims, costs and. losses and carry out other assigned duties. ARTICLE V.S. Services to Nonmembers. (1) CIRSA may provide to nonmembers, by intergovernmental agreement, one or more services pertaining to or associated with insurance or self-insurance, loss control, risk management, and claims administration, if such services will not adversely affect the tax exempt status of CIRSA. (2) The nonmembers to which the services described in paragraph (1) above may be provided shall be limited to governmental entities which are defined as "public entities" under Page 3: As Amended June 14, 2000 24-10-103(5), C.R.S., and which are authorized to enter into an intergovernmental agreement for ' such services pursuant to 29-1-201 et ~., C.R.S. (3) The intergovernmental agreement described in paragraph (1) above shall comply with 29-1-203(2), C.R.S., and shall be approved by the Board and by the governing body of the nonmember governmental entity to whom the services described in paragraph (1) are to be provided. (4) Neither the property and liability coverages authorized by 24-10-115.5 and 29-13- 102, C.R.S., nor the workers' compensation coverages authorized. by 8-44-101(1)(c) and 8-44- 204, C.R.S., shall be provided except to entities which meet the requirements for membership in CIRSA and which properly adopt and execute these Bylaws. ARTICLE VI. Participation. (1) The membership of CIRSA shall be limited to the following entities which properly adopt and execute this intergovernmental agreement: (a) Any municipality which is a member of the Colorado Municipal League; (b) Any city and county which is formed as a result of a change in the status of a CIRSA member from a municipality to a city and county, except that the continued _----`~ membership of any such member after such a change in status shall be subject to Board approval in the same manner as set forth in subsection (6) of this section for a new member, and shall also be subject to notice to and action by the membership in the same manner as set forth in subsection (7) of this section for a new member; and (c) Any other entity which meets all of the following requirements: 1. The entity is a "public entity" as said term is defined in C.R.5. 24- 10-103(5), as from time to time amended, other than the state, a county, a city and county, or a school district; 2. The entity has, throughout the term of its membership, an intergovernmental agreement in effect with a member municipality for the provision of one or more functions, services, or facilities lawfully authorized to both. the entity and the municipality, and such member municipality consents to the entity's participation; 3. Participation by the entity is permitted by applicable state law; and 4. Participation by the entity will not adversely affect the tax-exempt status of CIRSA. (2) An entity which ceases to have in effect an intergovernmental agreement with a member municipality as required by Section VI.l.b.2 shall cease to be a member as of the last day of the claim year in which the entity ceased to have such agreement in effect. Page 4: As Amended June 14, 2000 r (3) No representative of any entity other than a member municipality may serve on the Board. (4) Notwithstanding any other provision of these Bylaws, no proposed amendment to these bylaws to permit a representative of any entity other than a member municipality to serve on the Board shall be effective unless approved by at least two-thirds of the municipalities which are members of CIRSA. (5) A member may participate in CIRSA for either or both of the following purposes: (a) The property and liability coverages authorized by 24-10-115.5 and 29-13- 102, C.R.S., as amended, and claims services, loss control services, and risk management services related to such coverages; and (b) The workers' compensation coverages authorized by 8-44-101(1)(c) and (3) and 8-44-204, C.R.S., as amended, and claims. services, loss control services, and risk management services related to such coverages. (6) New members may be admitted only by a vote of the Board, subject to the payment of such sums and under such conditions as the Board shall in each case or from time-to- time establish. ---~ (7) The members shall be notified in writing of each proposed new member. Ten percent (10%) of the members may request a membership meeting to consider admission of a new member. The request shall be in writing and must be received at the CIRSA offices no later than fifteen (15) days after mailing of the notice. If such request is received within the fifteen- (15) day period, a membership meeting shall be called by the Chairman and the new member shall be admitted only by atwo-thirds (2/3) vote of the members present at the meeting. A member may waive its right to receive notification of proposed new members pursuant to this section. The waiver shall be in writing and shall be signed by the mayor or manager or, if there is no manager, the clerk. Such a waiver by a member shall not prevent it from requesting a membership meeting to consider, or from taking any other action under these Bylaws concerning, the admission of a new member. (8) A member who is participating in CIRSA for one of the purposes .set forth in section (5} of this Article may be authorized to participate in CIRSA for the other of those purposes by a vote of the Board, subject to the payment of such sums and under such conditions as the Board shall in each case or from time-to-time establish. Compliance with the provisions of section (7) of this Article shall not be required in connection with the authorization unless such compliance is made a condition of the authorization by a vote of the Board. ARTICLE VII. Members' Powers and Meetings. (1) The members at a meeting thereof shall have the power to: (a) Elect Directors by vote of the members present at the annual meeting. Page 5: As Amended June 14, 2000 (b) Amend the Bylaws by atwo-thirds (2/3) vote of the members present at a meeting. Notice of any proposed Bylaw amendment shall be mailed to each member at least fifteen (15) days in advance of the vote thereon. An amendment shall take effect immediately unless otherwise provided in the amendment or in the motion to approve the amendment. No Bylaw amendment shall apply to or affect any member which withdraws from CIRSA within fifteen (15) days after approval of the Bylaw amendment and notifies the Board in writing, within such fifteen (15) day period, of its opposition to the Bylaw amendment. (c) Decide an appeal from an expulsion decision as provided in Article ~V, and admit members as provided in Article VI. (d) Remove a Director by atwo-thirds (2/3) vote of the members present at a meeting. Notice of the proposed removal of a Director shall be mailed to each member at least fifteen (15) days in advance of the vote thereon. (2) Meetings of the members shall be held as follows: (a) Members shall hold at least one membership meeting annually at a time and place to be set by the Board, with notice mailed to each member at least fifteen (15) days in advance. At least one of said membership meetings shall be held between November 1 and December 31 of each year. - ~ (b) Special meetings shall be held if called by the Board. or by a written petition of thirty percent (30%) of the members. Notice of special meetings shall be mailed to each member at least fifteen (15) days in advance. (c) The Chairman of the Board will preside at the meetings. (d) Thirty percent (30%) of the total number of members of CIRSA as of the date of any meeting shall constitute a quorum to do business during that meeting. (e) No absentee or proxy voting shall be allowed. (f) Each member shall be entitled to one vote on each issue. ARTICLE VIII. Obligations of Members. (1) The obligations of members of CIRSA shall be as follows: (a) To pay promptly all annual and supplementary contributions and other payments to CIRSA at such times and in such amounts as shall be established by the Board pursuant to these Bylaws. Any delinquent payments shall be paid with interest which shall be equivalent to the prime interest rate on the date of delinquency of the bank which invests the majority of the CIRSA funds. Payments will be considered delinquent forty-five (45) days following the due date. Page 6: As Amended 3une 14, 2000 ~ (b) To designate in writing, signed by the Mayor or Manager or, if there is no Manager, the Clerk, a voting representative and alternate for the members' meetings. A member's voting representative must be an employee or officer of the member, but may be changed from time-to-time. (c) To allow CIRSA and its agents, officers and employees reasonable access to all facilities of the member and all member records, .including but not limited to financial records, as required for the administration of C1RSA. (d) To allow CIRSA and attorneys designated by CIRSA to represent the member in the investigation, settlement and litigation of any claim made against the member within the scope of loss protection furnished by CIRSA. (e) To cooperate fully with CIRSA's attorneys, claims adjusters and any other agent, employee, or officer of CIRSA in activities relating to the purposes and powers of CIRSA. (f) To follow the loss control standards and procedures adopted by the Board. (g) To report to C1RSA, in such form and within such time as CIRSA may require, all incidents or occurrences which could reasonably be expected to result in CIRSA being required to cover a claim against the member, its agents, officers, or employees, or for casualty losses to municipal property, within the scope of coverages undertaken by CIRSA. (h) To maintain an active safety committee, safety coordinator, or safety contact. (i) To report to CIRSA, in such form and within such time as CIRSA may require, the addition of new programs and facilities or the significant reduction or expansion of existing programs and facilities or other acts which will cause material changes in the member's potential loss. (j) To provide CIRSA, in such form and within such time as CIRSA may require, a completed renewal application. (k) To participate in coverage of losses and to pay contributions as established and in the manner set forth by the Board. (1) To the extent permitted by law, each member shall prevent its officers, employees and attorneys from representing voluntarily any person or entity or providing voluntarily any expert testimony or other assistance to any person or entity in any tort claim made or tort action brought against any other member or against any officer, employee or attorney of another member for action taken as an officer, employee or attorney of such other member. The obligation, imposed by this paragraph shall not apply where such claim is made or action is brought by a member itself or by an officer or employee thereof acting in an official capacity. Page 7: As Amended June 14, 2000 ARTICLE IX. Contributions. (1) It is the intention of CIRSA to levy contributions from the members as established by the Board. (2} (a) The contributions may include contributions to a reserve fund. The reserve fund may be used only to pay claims, and expenses related thereto, accepted by the Board pursuant to Article XI (1)(r) for which previous contributions for a claim year are insufficient. (b) If the reserve fund is so used, the proportionate shares in the reserve fund of those members and former members which were members during the claim year for which claims were paid from the reserve fund shall be correspondingly reduced and the Board shall promptly determine, pursuant to policies adopted by the Board for replenishment contributions, whether replenishment of the reserve fund is necessary and, if so, the allocation among members and former members and the amount and timing thereof. (c) All members and former members, by virtue of their membership during any claim year, waive the right to assert that the levy of replenishment contributions pursuant to this Article for such claim year is barred by any statute of limitations. (3) The Board shall annually review and report to the members the contributions to the reserve fund, the earnings thereon and the expenditures therefrom. The Board shall credit members and former members making such contributions, in the same proportions as the contributions were made, all amounts in excess of the amounts which the Board reasonably determines to be necessary to pay claims and expenses related thereto, including sufficient funds for payments which might be .made pursuant to Article XI (1)(r). Credits to members may be made in the form of credits against future contributions or in the form of payments, as the Board shall determine. Credits to former or withdrawing members shall be made in the form of payments. No credit shall be given or paid to any member or former or withdrawing member which owes any amount to CIRSA until the amount owing is paid, and any credit or payment to be made under this Article IX (3) may be used to pay such amount. (4) Any money contributed to any loss fund or for the administrative expenses of CIRSA and not needed for loss fund purposes or administrative expense purposes may be credited to the reserve .fund or may be as credited to members and former or withdrawing members, or both, in the manner determined by the Board, except otherwise specifically provided in these Bylaws or in policies adopted by the members as authorized in these Bylaws. Credits to members may be made in the form of credits against future contributions or in the form of payments, as the Board shall determine. Credits to former or withdrawing members shall be made in the form of payments. All credits shall be in similar proportions as the contributions paid by the members. The Board shall reasonably determine whether money is available for reserve fund credit or contribution credit, or both, and the timing, proportions, and amounts thereof. Page 8: As Amended June 14, 2000 (5) No loss fund created for the property and liability coverages authorized by 24-10- 115.5 and 29-13-102, C.R.S., as amended, shall be combined or commingled with any loss fund created for the workers' compensation coverages authorized by 8-44-101(1)(c) and (3) and 8-44- 204, C.R.S., as amended. ARTICLE X. Board of Directors. (1) The Boazd shall be composed of seven (7) Directors, each from a different member. Directors will be elected from among the members' voting representatives. There will be: (a) Two Directors, each from a different member under ten thousand (10,000) population. (b) Two Directors, each from a different member of ten thousand (10,000) to forty thousand (40,000) population. (c) Two Directors, each from a .different member above forty thousand (40,000) population. (d) One Director at large. -`~ (2) Every yeaz population will be determined by the most current available population figures provided by the. state Department of Local Affairs. (3) The election of Directors will be made by the members at the membership meeting to be held between November 1 and December 31 of each year. A Director shall assume office at the first Board meeting held in the following year. (4) Terms of the Directors will be two-yeaz-staggered terms. (5) A vacancy shall exist when a Director resigns, is no longer the member's voting representative, dies, or is removed by the members pursuant to these Bylaws. (6) No person shall be removed from office as a Director by reason of any change, during the term of office for which such person was elected or appointed, in the population categories described in (1)(a),(b) and (c) of this Article or in the population of the Director's municipality. ARTICLE XI. Powers and Duties of the Board of Directors. (1) The Board has the following powers, in addition to any other powers set forth in these Bylaws: (a) To elect during the first Board meeting of each year, a chairman, vice chairman, secretary/treasurer and other officers as appropriate. Each officer shall serve until his Page 9: As Amended June 14, 2000 or her successor is elected, but there shall be no limit on the number of terms served by any person. (b) To admit new members as provided in Article VI and to adopt criteria for new members. (c) To establish contributions to be paid by the members, at such time or times and in such amounts as the Board deems appropriate for the operation of CIRSA and as necessary to ensure the solvency and avoid impairment of CIRSA. (d) To establish the types of losses to be covered, the limits of liability, and the types of deductions which CIRSA provides. (e) To select all service providers necessary for the administration of CIRSA. (f) To set the dates, places and provide an agenda for Board and members' meetings. (g) To fill vacancies in the Board by majority vote of the remaining Directors for the unexpired term. (h) To exercise all powers of CIRSA except powers reserved to the members. ---~ (i) To hire and discharge personnel or to delegate such authority to the Executive Director. (j) To provide for claims and loss control standards and procedures, to establish conditions which must be met prior to the payment or defense of a claim, and to deny a claim or the defense of a claim if the conditions are not met. (k) To provide for the investment and disbursement of funds. (1) To establish rules governing its own. conduct and procedure and the powers and duties of its officers, not inconsistent with these Bylaws. (m) To issue subordinated debentures consistent with applicable requirements of the Insurance Commissioner of Colorado. (n) To form committees and provide other services as needed by CIRSA. The Board shall determine the method of appointment and terms of committee members. (o) To do all acts necessary and proper for the operation of CIRSA and implementation of these Bylaws subject to the limits of the Bylaws and not in conflict with these Bylaws. Page 1 O: As Amended Tune 14, 2000 (p) Dissolve CIRSA and disburse its assets by atwo-thirds (2/3) vote of the entire membership provided that a notice of intent to dissolve CIRSA shall be given to the Insurance Commissioner at least ninety (90) days prior to the effective date. No such plan to dissolve CIRSA shall be effective until approved by the Insurance Commissioner. Upon dissolution of CIRSA, the assets of CIlZSA not used or needed for the purposes of CIRSA, as determined by CIRSA and subject to approval by the Insurance Commissioner, shall be distributed exclusively to municipalities which are members of CIRSA prior to dissolution to be used for one or more public purposes. (q) To delegate to the Executive Director, by motion approved by the Board, any of the Board's powers and duties, except that the Board may not so delegate its powers to elect officers, admit new members, establish contributions by the members, fill vacancies in the Board, adopt C1RSA's budget, establish conditions which must be met prior to the payment or defense of a claim, or dissolve CIRSA. (r) Notwithstanding any other provision of these Bylaws or any limitation on CIRSA coverages, for any claim year since the inception of CIRSA the Board may pay those claims and expenses related thereto which would otherwise be denied for the reason that payment would exceed any applicable specified aggregate limit and available insurance or reinsurance. Any such payment shall be made only from a reserve fund established pursuant to Article IX (2), shall not exceed the amount in the reserve fund, shall be subject to the conditions and requirements of Article IX (2), and shall be consistent with such policy as the members may adopt by atwo-thirds (2/3) vote of the members present at a meeting. (s) To make reports to the members at member meetings or otherwise. (t) To impose a reasonable fee on a former. member for the costs of administration which pertain to that member and which arise after the conclusion of the membership. Such fee may be billed against and deducted from any surpluses that would otherwise be credited to the former member pursuant to Article IX, or may be billed to the former member. (2) The Board has the following duties, in addition to any other duties set forth in these Bylaws: (a) To prepare, adopt, and report CIRSA's budget to the members. (b) To make reports to the members at their meetings. (c) To provide to members annually an audit of the financial affairs of CIRSA to be made by a Certified Public Accountant at the end of each fiscal year in accordance with generally accepted auditing principles and state law. (d) To provide to members annually an annual report of operations. Page 11: As Amended June 14, 2000 ~~„~ (e) To adopt a policy describing those CIRSA documents and records which are available to CIRSA members and to the public and any limitations thereon. (f) To provide for payment of covered claims and expenses related thereto in the order in which the amounts become due, until any applicable specified aggregate limit and insurance or reinsurance available for such payment is depleted. ARTICLE XII. Meetings of the Board of Directors. (1) The Board may set a time and place for regular meetings which may be held without further notice, and shall establish procedures for notice of special meetings. (2) Four (4) Directors shall constitute a quorum to do business. All acts of the Board shall require a majority vote of the Directors present. (3) One or more or all Directors on the Board may participate in any meeting of the Board by means of a conference telephone or similar communications equipment by which all persons participating in the meeting can communicate with each other at the same time. Participation by such means shall constitute presence at the meeting. No such meeting shall be held unless diligent effort is made to notify all Board members. - ~ (4) Any action of the Board may be taken without a meeting if consent in writing setting forth the action so taken is signed by all Directors then serving on the Board. Such consent shall have the same effect as a unanimous vote and may be executed in counterparts. ARTICLE XIII. Liability of Board of Directors or Officers. The Directors, officers and committee members of CIRSA should use ordinary care and reasonable diligence in the exercise of their powers, and in the performance of their duties hereunder; they shall not be liable for any mistake of judgment or other action made, taken or omitted by them in good faith; nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care. No Director, officer, or committee member shall be liable for any action taken or omitted by any other Director, officer or committee member. CIRSA shall obtain a bond or other security to guarantee the faithful performance of each Director's, officer's and the Executive Director's duties hereunder. CIRSA may use any loss fund to defend and indemnify any Director, officer, committee member or employee for any action made, taken, or omitted by any such person in good faith within the scope of his or her authority for any CIRSA, or may pay for or reimburse the reasonable expenses, including liability expenses and attorneys' fees, incurred by any such person who is a party in a proceeding resulting from such an action, in advance of the final disposition of the proceeding, but any such payment or reimbursement shall be repaid to CIRSA if it is determined that the action was not made, taken, or omitted in good faith or was not within the scope of his or her authority for CIRSA. CIRSA may purchase or otherwise provide for insurance coverage for such Directors, officers, committee members and employees. Page 12: As Amended June 14, 2000 -~ reasons why it should not be expelled. The decision of the Board shall be effective as of the date and upon the terms and conditions set forth in the Bylaws and applicable excess or reinsurance policies and as otherwise specified by the Board, except as provided in paragraph (c) of this Article XV (2). (c) The member may. appeal the Board's decision to the membership. Notice of the appeal shall be provided to each member. The appeal shall be considered by the members only if twenty percent (20%) of the members request the Board, in writing, to schedule a membership meeting on the appeal; otherwise the appeal shall be considered denied. If the appeal will be considered by the members, the Chairman of the Board shall schedule a membership meeting and each member, including the appealing member, shall be provided at least ten (10) days prior written notice of the date, time and place of the meeting. The appealing member shall be entitled to be present at the meeting and to present evidence and reasons why it should not be expelled and the Board may present evidence and reasons why expulsion is proper. The appealing member shall not be counted in determining the number of votes required, nor shall the appealing member be entitled to vote on the appeal. The decision of the members shall be by majority vote of those present at the meeting and shall be final, and any expulsion shall be effective as of the date and upon the terms and conditions set forth in the Bylaws and applicable excess or reinsurance policies, and as otherwise specified by the members. (3) The members may, by atwo-thirds (2/3} vote of the members present at a meeting, adopt or amend a policy establishing requirements applicable to members which are ~ expelled. ARTICLE XVI. Conditions of Withdrawal and Expulsion. (1) A withdrawn or expelled member shall remain obligated for all amounts owing prior to withdrawal or expulsion from CIRSA and for all amounts which thereafter become owing pursuant to CIRSA Bylaws and policies adopted by the members which are in .effect at the time of withdrawal or expulsion including, but not limited to, contributions levied pursuant to Article IX (2) of the CIRSA Bylaws. (2) A withdrawn or expelled member is considered a member of CIRSA for the purpose of payment of the member's claims and expenses related thereto which remain covered under the terms of CIRSA's excess policies. A withdrawn or expelled member shall remain subject to all conditions of coverage and obligations of a member under CIRSA Bylaws, insurance or reinsurance policies, and policies adopted by the members which are in effect at the time of withdrawal or expulsion. A withdrawn or expelled member shall have no right to vote on any matter pending before the CIRSA membership. (3) Except as otherwise provided in these Bylaws: (a) A withdrawn member shall retain all rights of a withdrawn member under CIRSA Bylaws and policies adopted by the members which are in effect at the time of the withdrawal; Page 14: As Amended June 14, 2000 (b) An expelled member shall retain all rights of an expelled member under CIRSA Bylaws and policies adopted by the members which are in effect at the time of the expulsion; and (c) No withdrawn or expelled member. may be adversely affected by any change in such Bylaws or policies adopted subsequent to the effective date of the member's withdrawal or expulsion. (4) An expelled member shall have no right to be credited for any amounts pursuant to Article IX (3) or (4) of the Bylaws. Any such amounts that would have been credited but for the expulsion shall be redistributed among those members who were members on the effective date of such member's expulsion, in similar proportions as the contributions paid by those members. (5) Unless disapproved by an affected insurance or reinsurance carrier, CIRSA shall offer a withdrawing member, no later than forty-five (45) days after CIRSA's receipt of the written notice of withdrawal, at least twenty-four (24) months of extended reporting period on any claims-made coverage provided through CIRSA, at a cost reasonably calculated by CIRSA and subject to any contract terms existing at withdrawal. ARTICLE XVII. General. -) (1) This document shall constitute an intergovernmental contract among the members of CIRSA. The terms of this contract may be enforced in court by CIRSA itself or by any of its members. (2) The consideration for the duties herewith imposed upon the members to take certain actions and to refrain from certain other actions shall be based upon the mutual promises and agreements of the members set forth herein. (3) A certified copy of the ordinance, resolution or other document of approval for each member, accompanied by an attorney's certification of proper authority and adoption, shall be attached to the original Bylaws on file with CIRSA. These Bylaws may be executed in counterparts. (4) Except to the extent of the limited financial contributions to CIRSA agreed to herein or such additional obligations as may come about through amendments to these Bylaws, no member agrees or contracts herein to be held responsible for any claims in tort or contract made against any other member. The contracting parties intend in the creation of CIRSA to establish an organization only within the scope herein set out, and have not herein created as between member and member any relationship of surety, indemnification or responsibility for the debts of or claims against any other member. (5) In the event that any article, provision, clause or other part of these Bylaws should be held invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability with respect to other articles, Page 15: As Amended June 14, 2000 "` provisions, clauses, applications or occurrences, and these Bylaws are expressly declared to be severable. ATTEST: Name Title Date By: Title City/Tawn Date Page 16: As Amended June 14, 2000 ff. l~ ORDINANCE NO. 17 SERIES 2003 AN ORDINANCE AUTHORIZING THE CONVEYANCE OF FEE TITLE TO TWO PARCELS OF REAL PROPERTY IN THE TOWN OF VAIL AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail is the owner of certain unplatted real property as shown on attached Exhibits "A-1" and "A-2" (the "Properties") and legally described as follows: Tract D (excepted part): Beginning at the northwest corner of Tract C, Vail Village Second Filing, Reception #96928, thence N70°33'28" E, 115.35 feet to a point on the northerly line of Tract D, Vail/Lionshead Third Filing, Reception #117682; thence S14°46'10"E, 6.35 feet to a point on the northerly line of said ,Tract C; thence S73°42'37"W, a distance of 115.00 feet, to the Point of Beginning. Containing 365 square feet more or less. Bearings contained herein are based on the platted bearing S73°42'37"W along the Northerly line of Tract C, Vail Village, Second Filing; and An unplatted parcel of land lying within the NW %4, NW %4, Section 7, Township 5 South, Range 80 West of the 6t" Principal Meridian, Town of Vail, County of Eagle, State of Colorado, being more particularly described as follows: Beginning at the Southwest corner of Tract C, Vail Village Second Filing, Reception #96928, thence along the South line of said Tract C N79°03'56"E, 149.94 feet; thence along the West line of Parcel 3, Book 346, Page 615, S14°46'10"E, 48.36 feet; thence departing said line S83°59'11"W, 160.49 feet to intersect the West line of the Northwest %4 of said Section 7; thence along said line N00°06'06"E, 35.14 feet to the Point of Beginning; containing 0.147 acres (6,421 square feet) more or less. Bearings contained herein are based on the platted bearing N79°03'56"E along the South line of Tract C, Vail Village, Second Filing; and WHEREAS, it is the Town Council's opinion that the health, safety and welfare of the citizens of the Town of Vail would be enhanced and promoted by the sale of the Properties to the Eagle River Water and Sanitation District (the "Purchaser"). NOW, THEREFORE, be it ordained by the Town Council of the Town of Vail, Colorado, that: The Town Council hereby approves this sale of the Properties. 2. The Town Manager is hereby authorized and directed to execute such instruments of conveyance as are appropriate to convey fee title from the Town of Vail to the Purchaser. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Ordinance 17, Series of 2003 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. The repeal or the repeal and reenactment of any provision of the Municipal Code of the Town of Vail as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. 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., INTRODUCED, READ, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 5th day of August, 2003 and a public hearing shall be held on this Ordinance on the 19th day of August, 2003, at 7:00 p.m. 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 19th day of August, 2003. Ludwig Kurz, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance 17. Series of 2003 ~wis~r sECrION 1 ~ sECnoN s SECTION 12 I SECTION 7 HWY. R.O.W. FOREST ROAD of Tract D-- (excepted part ~~ 6346 P615) 3) z W Z J HWY. R. 0. W. TRACT C Vail Village Second. Filing P.O.B. PARCEL 3 6346 P615 g ~ DESCRIBED PARCEL ~ ~+ '~ ~ 160.49' ~' g 5g3'S9'11'W ~ > _` i 67. ~ .~--- 87 67 GORE CREE~ - - ~~ ~ GORE CREEK .~ -- _ __~ APPROXIMATE APPROXIMATE EDGE ~ UNPLATTED LOCATION OF OF WATER 100-YEAR FLOOD PLAIN UNPLATTED LAND DESCRIPTION An unplatted parcel of land lying within the NW 1/4, NW 1/4, Section 7, Township 5 South, Range 80 West of the 6th Principal Meridian, Town of Vail, County of Eagle, State of Colorado, being more particularity described as follows: Beginning at the Southwest corner of Tract C, Yail village Second Filing, Reception #96928, thence along the South line of said Tract C N79'O3'56"E, 149.94 feet; thence along the West line of Parcel 3, Book 346, Page 615, S14'46'10"E, 48.36 feet; thence departing said line S83'59'11"W, 160.49 feet to intersect the West line of the Northwest 1 /4 of said Section 7; thence along said line N00'06'06"E, 35.14 feet to the Point of Beginning; containing 0.147acres (6,421 square feet) more or less. Bearings contained herein are based on the platted bearing N79'03'S6"E along the South line of Tract C, Vail Village, Second Filing. 0 Rf~~ ._ 1, Dana B. Spigenerl ~.~; ;G 5 State of Colorado ~ PLS No. 33655 ~ :_ NOTICE: ACCORDING TO COLOR'~a~IIAYtP(~~T COMMENCE ANY LEGAL ACTION BASED UPON ANY DEFECT IN THI IN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT. IN NO EVENT MAY ANY ACTION BASED UPON ANY DEFECT IN THIS EXHIBIT BE COMMENCED MORE THAN TEN YEARS FROM THE DATE OF THE CERTIFICATION SHOWN HEREON. ~,\TOV02001\DWC\EoQ~eRiverS~tc\r~ark\Exbibitsd«q 6-10-03 i SCALE fi ~ 60' SURVEYOR'S NOTE: The boundary Mforrnotlon, shown hereon, is based solely on platted data and does not conatltute a survey. ~ ~ ~ ~ ~~ ~ ~ ED WARDS DUSINE55 LEN TER P.0. BOX 97 EDWARDS. COLORADO 81632 (970) 926-3373 FAX (970) 926-3390 Tract D - PARCEL 1 8346 P615 .~ ~ y LOT 31 ~ r (NAIL VULLAGE 2ND FILING). N W r O~ ~ ~ ~ ~ ~~ i J Q K ~ ~ ~. ~ G~ N `~ O EXHIBIT/ -1 SECTION 1 SECTION 6 SECTION 12 SECTION 7 DESCRIBED PARCEL HWY. R,O,W. FOREST ROAD HWY. R.O.W. Tract D - PARCEL 1 8346 P615 P.O.B. k13~w ~~5p0 ' ~~ y LOT 31 g~3 S14.48'10'E ~ ~ (NAIL VIILLAGE 2ND FILING) 6,35' ~ ~ ~ a, ~ 9 rn ~ ~~ J t7 TRACT C n T Vail Villoge Second Filing a 2 ~i N O O J PARCEL 3 6346 P615 UNPLATTED ~ _'/ ~~ ~~ ~ GORE OREEyC '~ _ f ._--~ ~ , ' UNPLATTED I AND DESCRIPTION Tract D (excepted port): Beginning at the northwest corner of Tract C, Vail Villoge Second Filing, Reception x(96928, thence N70'33'28"E, 115.35 feet to a point on the northerly line of Tract 0, Vail/Lionsheod Third Filing, Reception X117682; thence 514'46'10"E, 6.3.5 feet to o point on the northerly line of said Tract C; thence 573'42'37"W, o distance of 115.00 feet, to the Point of Beginning. Containing 365 square feet more or less. Bearings contained herein ore based on the plotted bearing 573'42'37"W along the Northerly line of Tract C, Vail Villoge, Second Filing. RfG/sl • y Dana 8. Spigener ~p ; 0 ~ State of Colorado ~ ; ~ J~J PLS No. 33655 J'f~'•.••N•..• S ~N~L LAND NOTICE: ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LECAL ACTION BASED UPON ANY DEFECT IN THIS EXHIBIT NATHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEfECT.IN NO EVENT MAY ANY ACTION BASED UPON ANY DEFECT IN THIS EXHIBIT BE COMMENCED MORE THAN TEN YEAR$ FROM THE DATE OF THE CERTIFICATION SHOWN HEREON. P: \TOV02001 \DWC\EoyleRiverSile\aahibils.dwq sc,a~ r - ~o, SURVEYOR'S NOTE: The boundary inforrtiation, shown hereon, is based solely on plotted data and does not constitute o survey. ~i _ ~ - ~ ~__ - ~ ~ ~-. ~- ~ EDwARDS OuSiNESS CENTER P.O. BOx 97 EOWARDS. COLORADO 81832 (970) 926-3373 rAx (970) 926-3390 MEMORANDUM i~ ~~~ ~. ~ TO: Planning and Environmental Commission FROM: Community Development Department DATE: January 13, 2003 SUBJECT: A request for a text amendment to Sections 12-7H-11 & 12-71-11, Vail Town Code and the Lionshead Redevelopment Master Plan to allow for a clarification to the maximum height and calculation of average maximum height requirements for building constructed in the Lionshead Mixed Use 1 and the Lionshead Mixed Use 2 zone districts, and setting forth details in regard thereto. Applicant: Town of Vail Planner: George Ruther I. SUMMARY The Department of Community Development is requesting. that the Planning and Environmental Commission review the proposed text amendment intended to clarify the height requirements in the Lionshead Mixed Use zone districts, as further described in the Lionshead Redevelopment Master Plan. The proposed language has been prepared in response to the input staff received from the Planning and Environmental Commission and the public. In summary, the staff is proposing to utilize a similar method of building height calculation as anticipated in the Lionshead Redevelopment Master Pian. The proposal maintains the concept of both maximum building height and average height calculations. The difference proposed is that the regulation is further clarified and more easily understood. Staff believes that the proposed language effectively achieves variety and movement in ridgelines as intended in the Master Plan. Il. DESCRIPTION OF THE REQUEST The Department of Community Development has requested that the Planning and Environmental Commission review an administrative interpretation of the maximum height calculation for structures constructed in the Lionshead Mixed Use zone districts. Staff's request is in response to recent discussions regarding the calculation of the average maximum height from which staff has concluded that further clarification is necessary to ensure that the intent of the regulation has been met. Specifically, staff recognized that there are multiple methods of measuring average maximum height and numerous questions about how to implement the height calculation. Section V of this memorandum outlines the preferred method of calculation in greater detail. Section VI outlines a possible text amendment to the Lionshead Redevelopment Master Plan with regard to maximum allowable building height. This request is brought to the Planning and Environmental Commission for review and consideration pursuant to Section 12-3-3, Vail Town Code. M/Y TOWN OF VAIL ~ III. BACKGROUND On December 15, 1998, the Town of Vail adopted the Lionshead Redevelopment Master Plan. In adopting the Lionshead Redevelopment Master Plan, the Vail Town Council adopted an average maximum height calculation for improvements constructed in the Lionshead Mixed Use I and Lionshead Mixed Use II zone districts. The reason, in part, for adopting an average maximum height calculation was to respond to building height and massing criteria within an already built environment. Unlike development in other areas in town, where maximum building height is calculated based upon existing or finished grade, which ever is more restrictive, redevelopment projects in the Lionshead Mixed Use I and Lionshead Mixed Use II zone districts must be responsive to the existing conditions, improvements, and the project's relationship to existing buildings and infrastructure. To address these concerns, it was determined that an alternate means of calculating building height in the Lionshead Mixed Use i and Lionshead Mixed Use 11 zone districts was necessary. On September 9, 2002, the Town of Vail Planning and Environmental Commission held a worksession meeting to discuss the average maximum height calculation issue for determining building height in the Lionshead Mixed Use I and Lionshead Mixed Use II zone districts. Upon discussion of the issue, there was a clear consensus among the Commissioners that further clarification was needed to described and determine the allowable height of buildings in the Lionshead Mixed Use I and Lionshead Mixed Use II zone districts. What was not completely clear, however, was the methodology that should be adopted. In response to the discussion, the Commission asked staff to return to a future worksession meeting with proposed language that clarified the intent of the regulation, which upon implementation, resulted in buildings that did not exceed 82.5 feet maximum in height with an average maximum building height of 71 feet. A complete copy of the September 9, 2002, approved Planning and Environmental Commission meeting minutes have been attached for reference (Attachment A) On October 14, 2002, the Town of Vail Planning and Environmental Commission held a second worksession meeting to discuss the average maximum height calculation issue for determining building height in the Lionshead Mixed Use I and Lionshead Mixed Use II zone districts. Following a lengthy discussion of the issue and consideration of a proposed methodology, the Commission directed staff to prepare draft legislation for determining building height for future consideration. Specifically, given several inherent conflicts with the methodology proposed and the intent of the regulation, the Commission asked the staff to look into the feasibility of utilizing a building height calculation similar to that used for calculating height in Vail Village (Commercial Core I zone district). This alternate means of calculating building height uses a percentage basis or ratio for allowable maximum building height. A complete copy of the October 14, 2002, approved Planning and Environmental Commission meeting minutes have been attached for reference (Attachment B). On November 25, 2002, the Town of Vail Planning and Environmental Commission held a third meeting on this request. In response to matters expressed during the public comment portion of the meeting, the Commission heeded the input provided and granted the requested tabling of a final recommendation until January 13, 2003. 2 IV. APPLICABLE PLANNING DOCUMENTS A. Town of Vail Zoning Regulations Staff has reviewed the Town of Vail Zoning Regulations and believes the following sections are relevant to the review of this request: Section 12-2-2. Definitions GRADE, EXISTING: The existing grade shall be the existing or natural topography of a site prior to construction. GRADE, FINISHED: The finished grade shall be the grade proposed upon completion of a project. HEIGHT: The distance measured vertically from any point on a proposed or existing roof or eaves to the existing or finished grade (whichever is more restrictive) located directly below said point of the roof or eaves. Within any building footprint, height shall be measured vertically from any point on a proposed or existing roof to the existing grade directly below said point on a proposed or existing roof. Section 12-3-3, Appeals A. Administrative Actions: Any decision, determination or interpretation by any Town administrative official with respect to the provisions of this Title and the standards and procedures hereinafter set forth shall become final at the next Planning and Environmental Commission meeting (or in the case of design related decision, the next Design Review Board meeting) following the Administrator's decision, unless the decision is called up and modified by the Board or Commission. B. Appeal of Administrative Actions: 1. Authority: The Planning and Environmental Commission shall have the authority to hear and decide appeals from any decision, determination or interpretation by any Town administrative official with respect to the provisions of this Title and the standards and procedures hereinafter set forth, except that appeals of any decision, determination or interpretation by any Town administrative .official with regard to a design guideline shall be heard by the Design Review Board. 2. Initiation: An appeal maybe initiated by an applicant, adjacent property owner, or any aggrieved or adversely affected person from any order, decision, determination or interpretation by any administrative official with respect to this Title. "Aggrieved or adversely affected person" means any person who will suffer an adverse effect to an interest protected or furthered by this Title. The alleged adverse interest may be shared in common with other members of the community at large, but shall exceed in degree the general interest in community good shared by all persons. The Administrator shall determine the standing of an appellant. If the appellant objects to the Administrator's determination of standing, the 3 Planning and Environmental Commission (or the Design Review Board in the case of design guidelines) shall, at a meeting prior to hearing evidence on the appeal, make a determination as to the standing of the appellant. If the Planning and Environmental Commission (or the Design Review Board in the case of design guidelines) determines that the appellant does not have standing to bring an appeal, the appeal shall not be heard and the original action or determination stands. 3. Procedures: A written notice of appeal must be filed with the Administrator or with the department rendering the decision, determination or interpretation within ten (10) calendar days of the decision becoming final. If the last day for filing an appeal falls on a Saturday, Sunday, or aTown-observed holiday, the last day for filing an appeal shall be extended to the next business day. The Administrator's decision shall become final at the next Planning and Environmental Commission meeting (or in the case of design related decision, the next Design Review Board meeting) following the Administrator's decision, unless the decision is called up and modified by the Board or Commission. Such notice shall be accompanied by the name and addresses (person's mailing and property's physical) of the appellant, applicant, property owner, and adjacent property owners (the list of property owners within a condominium project shall be satisfied by listing the addresses for the managing agent or the board of directors of the condominium association) as well as specific and articulate reasons for the appeal on forms provided by the Town. The filing of such notice of appeal will require the administrative official whose decision is appealed, to forward to the Planning and Environmental Commission (or the Design Review Board in the case of design guidelines) at the next regularly scheduled meeting, a summary of all records concerning the subject matter of the appeal and to send written notice to the appellant, applicant, property owner, and adjacent property owners (notification within a condominium project shall be satisfied by notifying the managing agent or the board of directors of the condominium association) at least fifteen (15) calendar days prior to the hearing. A hearing shall be scheduled to be heard before the Planning and Environmental Commission (or the Design Review Board in the case of design guidelines) on the appeal within thirty (30) calendar days of the appeal being filed. The Planning and Environmental Commission (or the Design Review Board in the case of design guidelines) may grant a continuance to allow the parties additional time to obtain information. The continuance shall be allowed for a period not to exceed an additional thirty (30) calendar days. Failure to file such appeal shall constitute a waiver of any rights under this Title to appeal any interpretation or determination made by an administrative official. 5. Findings: The Planning and Environmental Commission (or the Design Review Board in the .case of design guidelines) 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 have or have not been met. 4 12-7H-11: Height and Bulk: Buildings shall have a maximum average building height of seventy one feet (71) with a maximum height of 82.5 feet, as further defined by the Lionshead Redevelopment Master Plan. All development shall comply with the design guidelines and standards found in the Lionshead Redevelopment Master Plan. Flexibility with the standard, as incorporated in the Lionshead Redevelopment Master Plan, shall be afforded to redevelopment projects which meet the intent of design guidelines, as reviewed and approved by the Design Review Board. B. Lionshead Redevelopment Master Plan Staff has reviewed the Lionshead Redevelopment Master Plans and believes the following sections are relevant to the review of this request: Section 2.1, Purpose of the Master Plan (in part) This master plan, developed over a period of two year and with extensive involvement by the community, is a comprehensive guide for property owners proposing to undertake development or redevelopment of their properties and the municipal officials responsible for planning public improvements. The plan outlines the Town's objectives and goals for the enhancement of Lionshead and proposes recommendations, incentives, and requirements for redevelopment and new development of public and private properties. Section 2.8 Adoption and Amendment of the Master Plan, The Lionshead Master Plan was adopted by Resolution 14, Series of 1998, on December 15, 1998, by the Vail Town Caunci/ following a recommendation to approve by the Planning and Environmental Commission. Future amendments to this master plan must be approved by resolution or motion by the Vail Town Council following a formal recommendation by the Planning and Environmental Commission. Implementation activities and ordinances will be approved in accordance with the Vail Town Code. Chapter 8, Architectural Design Guidelines (in part) The scope of the Design Guidelines includes all criteria related to the architectural design of new and remodel projects within Lionshead, along with site planning criteria which relate directly to architecture. Section 8.4.2.3, Building Height (in part) Maximum Heights Maximum height is defined as the distance from existing or finished grade - whichever is more restrictive - to the ridge of the nearest primary roof form to that grade. With this in mind, the Average Maximum Height of any building shall not exceed 71 ft. Notwithstanding the notion of Average Maximum Height, the Absolute Maximum Height of any building shall not exceed 82.5 ft. Absolute Maximum Height shall be determined 5 by interpolating existing or finished grade through the building footprint and measuring the vertical distance from the ridge of the highest primary roof form to imaginary plane created by the interpolated grades. Calculation of Average Maximum Height The intent of implementing an Average Maximum Height for buildings is to create movement and variety in the ridgelines .and roof forms in Lionshead. Toward that end, the Average Maximum Height of a building shall be calculated based upon the linear footage of ridgeline on primary roof forms. Any amount of primary roof form ridgeline that exceeds 71 ft. must be offset by at least an equal amount of primary roof form ridgeline falling below 71 ft., with the distance below 71 ft. equivalent to or greater than the distance exceeding 71 ft. The average calculation shall be based on the aggregate linear footage of primary roof forms across an entire structure, not separate individual roof forms. Additional Requirements/Exceptions All buildings, regardless of permitted building heights and massing principles, shall conform to all established Public View Corridors (see Lionshead Master Plan). Special "landmark" building elements, such as chimneys, towers, or other unique architectural forms, may exceed the Absolute Maximum Height, subject to approval by the reviewing board. This provision is intended to provide for architectural creativity and quality of building form, and shall not be used as a means or circumventing the intent of the building height limitations. In addition, regardless of final building height, buildings shall avoid monotonous, unbroken ridge lines, and shall provide visual interest through the use varied peak heights, roof forms, gables, and other appropriate architectural techniques. V. PROPOSED LIONSHEAD REDEVELOPMENT MASTER PLAN AMENDMENT The existing regulations for the calculation of maximum allowable building height and average maximum height in the Lionshead Mixed Use I and fl zone districts are confusing and unclear. The prescribed methods of calculation do not result in the intended consequences of the regulation and contains numerous loopholes and ambiguities. Over the course of the review and consideration of the building height calculation, staff has concluded that much of the confusion and ambiguity stems from the notion of an average maximum building height. Staff believes, and the Commission has affirmed, that the notion or intent of the average maximum building height limitation is to promote and create "movement and variety in the ridgelines and roof forms in Lionshead, thus avoiding long continuous, uninterrupted ridgelines." Over the course of the review of this amendment, staff has proposed several alternate means of building height calculation. It was determined that each method, however, resulted in unintended consequences or did not further the expressed intent of the regulation. Furthermore, staff prepared an alternate building height calculation methodology similar to that used for calculating the height of buildings in the Commercial Core I zone district (Vail Village) as requested by the Commission. Upon testing the methodology and exploring numerous scenarios, staff determined that such a method, like the others, would not meet the intent of the building height regulation for 6 Lionshead or resulted in unintended consequences. Therefore, staff is proposing the following changes to the building height calculation: 1) Implement a method of height calculation for the Lionshead Mixed Use zone districts that utilizes existing, finished and interpolated grades as the basis for determining building height. 2) Utilize the identification of "primary" roof ridge lines and "assumed" primary roof ridge lines that result in the creation of a series of continuous lines that are used in a mathematical formula established to determine the absolute maximum building height and average maximum height of a building 3) Create new definitions and graphic illustrations to aid in the understanding of the building height calculation. Staff is proposing the following amendment to Section 8.4.2.3 (Building Height) of the Lionshead Redevelopment Master Plan: Absolute Maximum Heights Absolute Maximum Height is defined as the vertical distance from existing, finished or interpolated grade -whichever is more restrictive - to the ridge of the nearest primary roof form to that grade. With this in mind, the Average Maximum Height of any building shall not exceed 71 ft. Notwithstanding the notion of Average Maximum Height, the Absolute Maximum Height of any building shall not exceed 82.5 ft. Within any building footprint, height shall be measured vertically from the ridgeline of the primary roof form on a proposed or existing roof to the interpolated or existing grade directly below said point on a proposed or existing roof to the imaginary plane created by the interpolated grades (see figure ????) Calculation of Average Maximum Height The intent of implementing an Average Maximum Height for buildings is to create movement and variety in the ridgelines and roof forms in Lionshead. Toward that end, the Average Maximum Height of a building shall be calculated based upon the linear footage of ridgeline along primary roof forms. Any amount of primary roof form ridgeline that exceeds 71 ft. must be offset by at least an equal amount of primary roof form ridgeline falling below 71 ft., with the distance below 71 ft. equivalent to or greater than the distance exceeding 71 ft. The average calculation shall be based on the aggregate linear footage of primary roof forms across an entire structure, not separate individual roof forms (see figure ???) Average Maximum Height Calculation Average Maximum Height = (Primary Ridge Length (A) X Average Height of Ridge (A)J + Primary Ridge Length (B) X Average Height of Ridge (B)] +~Primary Ridge Length (C) X Average Height of Ridge (C)J +(...] Primary Ridge Length (A) + Primary Ridge Length (B) + Primary Ridge Length (C) + (......)] Additional Requirements/Exceptions All buildings, regardless of permitted building heights and massing principles, shall conform to all established Public View Corridors (see Lionshead Master Plan). Special 7 "landmark" building elements, such as chimneys, towers, or other unique architectural forms, may exceed the Absolute Maximum Height, subject to approval by the reviewing board. This provision is intended to provide for architectural creativity and quality of building form, and shall not be used as a means or circumventing the intent of the building height limitations. In addition, regardless of final building height, buildings shall avoid monotonous, unbroken ridge lines, and shall provide visual interest through the use varied peak heights, roof forms, gables, and other appropriate architectural techniques To aid in the understanding of the proposed height regulations, the Community Development Department believes that several new definitions should be added to the Town of Vail Zoning Regulations. The following definitions shall be added to Section 12- 2-2 of the Vail Town Code, Definitions, are provided to clarify the building height calculation methodology: Primary Roof Ridgeline, Assumed The established centerline portion of a flat or mansard roof and/or the sloping ends of a gambrel or hip roof used in the determination of building height in the Lionshead Mixed Use 1 and 2 zone districts and as determined by the administrator. See figure Primary Roof Ridgeline Generally the highest or most dominant roof ridgeline atop a building mass or series of building masses used in the determination of building height in the Lionshead Mixed Use 1 and 2 zone districts. The ridgeline of a primary roof. Primary Roofs Roofs which cover more than 500 square feet of building area. Primary roofs shall not include required secondary roof forms, dormers, architectural projections, covered entryways, shop front colonnades, awnings, louvers, porte cocheres, covered decks, and other similar roof forms. This definition is used in the determination of building height in the Lionshead Mixed Used 1 and 2 zone districts. See figure ??? Dormer An architectural structure projecting out from a sloping roof of a building designed to provide light, air, access, or interior volume to a space and usually containing a vertical window or ventilating louver, having a gable or shed roof, in which the total cumulative length of the dormer(s) does not exceed fifty percent (50%) of the length of the sloping roof, per roof plane, from which the dormer(s) projects. Grade, Interpolated The re-established topographic conditions of a development site expressed in two-foot contour intervals and determined by connecting surveyed spot elevations located at 10- foot intervals around the perimeter of a property boundary and used in the determination of maximum allowable building height. VI. STAFF RECOMMENDATION The Community Development Department recommends that the Town of Vail Planning and Environmental Commission forwards a recommendation of approval of the proposed amendment to the Lionshead Redevelopment Master Plan and Section 12-2-2 Definitions of the Vail Town Code to the Vail town Council. Should the Commission 8 choose to recommend approval of the proposed amendments, staff suggests that the following finding be made as part of the motion: "The Town of Vail Planning and Environmental Commission finds that the existing language regarding building height calculation and average maximum height, as outlined in the Lionshead Redevelopment Master Plan, is both confusing and ambiguous and does not meet the intent of the height regulations as prescribed. Therefore, the Commission has reviewed three alternatives to the height calculation methodology and believes that the proposed building height method of calculation in the Lionshead Mixed Use 1 and 2 zone districts, results in a building height regulation that is more easily understood and effectively creates a 71 foot maximum average building height in the best case scenario." VII. ATTACHMENTS A. September 9, 2002 Planning and Environmental Commission Minutes B. October 14, 2002 Planning and Environmental Commission Minutes C. Figure 1 D. Figure 2 9 Approved 9/23/02 PLANNING AND ENVIRONMENTAL COMMISSION PUBLIC MEETING MINUTES PUBLIC WELCOME PROJECT ORIENTATION / - NO LUNCH Community Development Dept. MEMBERS PRESENT John Schofield Erickson Shirley Chas Bernhardt Doug Cahill Roll'se Kjesbo Monday, September 9, 2002 MEMBERS ABSENT Gary Hartman George Lamb 1:30 pm ~~ NOTE: If the PEC hearing extends until 6:00 p.m., the board may break for dinner from 6:00 - 6:30 Public Hearing -Town Council Chambers 2:00 pm A request for an interpretation of the maximum height and calculation of average maximum height requirements in the Lionshead Redevelopment Master Plan. Applicant: Town of Vail Community Development Department Planner: George Ruther George Ruther gave a presentation, per the staff report and stated that staff is looking for clarification and not an amendment to the adopted master plan regarding the calculation of average maximum height. Erickson Shirley stated that it would be helpful for him if staff could break down the request into specific questions the board should answer. George Ruther stated that the overall. question was, "How do you measure average maximum building height in the Lionshead Redevelopment Master Plan?" Erickson Shirley asked what were the specific questions which would answer that overall question. John Schofield suggested a question such as the definition of grade and height which were defined already in the Code. Doug Cahill stated that he read the Master Plan to say as using a plane created by the more restrictive grade and a plum bob be moved around within the footprint of the building. Erickson Shirley believed it was clear that height is defined in the Master Plan as being the distance from the roof ridge and existing or finished grade, which ever is more restrictive and secondly, "The average calculation shall be based on the aggregate linear footage of primary roof forms across an entire structure, not separate individual roof forms.". ~. TDWN OF VAIL ~ Approved 9/23/02 George Ruther stated that he believed it was not that clear. He said he could come up with several ways to interpret the document which would all give different results. Rollie and John agreed that one of the problems was that the drawing is based on a flat site, not on the topography which exists in Lionshead. John Schofield brought up that at the time the Master Plan was being done, he believed that a survey was done through out the Lionshead area, which included multiple spot elevations. He believed if the information was still available it may be beneficial to help substantiate the board's determination. George Ruther stated that he would check to see if it still existed. Chas Bernhardt presented a mathematical equation, which took the difference in height from two points on a roof ridge and divided by an interval to be determined. John Schofield suggested that grade should be interpolated under the building to create a plane to measure from. Doug Cahill asked if George Ruther would write that up. Erickson Shirley asked that a drawing accompany it. George Ruther restated the request, in order to clarify what he heard Chas Bernhardt clarified his variables included in the mathematical equation. He said points along the ridge would be measured over a determined distance step and that difference would be divided by that distance. Doug Cahill asked if the staff could add that no more than 50 percent of the building height could beat 82.5 feet. John Schofield stated that he felt the DRB would never approve some of the buildings as proposed in the staff report, even if they met the letter of the Master Plan. George Ruther stated that he didn't understand, under Chas's proposal, how each segment was handled over the length of the entire roof line. He said each segment would have an average height and then those segments would be averaged together to make sure that the overall ridge height is at an average of 71 feet. The Commission agreed that height should be measured from the most restrictive grade either existing, or finished. John Schofield stated that he felt that primary ridgeline needed to be defined. Doug Cahill stated that dormers were not a primary roof form, but they should be measured for overall height. George Ruther stated that the Master Plan called out dormers as secondary or special architectural features to be considered a primary roof form. John Schofield asked if George Ruther had enough feedback to write something for the next meeting. George Ruther stated that in some cases such as on a steep site, the height of a building could be higher if measured from the eave. Chas Bernhardt made a motion to table this to September 23, 2002. 2 Approved 9!23/02 Rollie Kjesbo seconded the motion. The motion passed by a vote of 5-0. 2. A request for a recommendation to the Vail Town Council of an amendment to Section 12-7A-7 (Height), Vail Town Code, to increase the maximum allowable building height in the Public Accommodation zone district and setting forth details in regards thereto. Applicant: Bob Lazier, represented by Jay Peterson Planner: George Ruther/Warren Campbell MOTION: Chas Bernhardt SECOND: Rollie Kjesbo VOTE: 5-0 TABLED UNTIL SEPTEMBER 23, 2002 3. A request for a conditional use permit, to allow for a public utility installation, located at the East Vail Water Tank, 5004 Snowshoe Lane/Summer Recreational Area, Vail Meadows Filing 1. Applicant: Town of Vail Planner: .Bill Gibson MOTION: Chas Bernhardt SECOND: Rollie Kjesbo VOTE: 5-0 TABLED UNTIL SEPTEMBER 23, 2002 4. A request for a final review of a final plat for a major subdivision; a request for a final review of a conditional use permit to allow for a private educational institution and development plan approval to construct employee housing; and setting forth details in regards thereto, located at the site known as "Mountain Bell"/an unplatted piece of property, located at 160 N. Frontage Rd./to be platted as Middle Creek Subdivision. Applicant: Vail Local Housing Authority, represented by Odell Architects Planner: Allison Ochs MOTION: Chas Bernhardt SECOND: Rollie Kjesbo VOTE: 5-0 TABLED UNTIL SEPTEMBER 23, 2002 5. A request for a conditional use permit and an amendment to the approved development plan, to allow for a temporary private educational institution, located at the Lionshead RV Lot, 395 S. Frontage Road/Lot 1, Block 2, Vail Lionshead 1St Filing. Applicant: Children's Garden of Learning Planner: Allison Ochs WITHDRAWN 6. A request for a minor amendment to an approved development plan, in accordance with Section 12-8D-6 of the Vail Town Code, to allow for improvements to the Golden Peak Ski Base, located at 458 Vail Valley Drive/Tract F,Vail Village 5th Filing and 498 Vail Valley Drive/Tract B, Vail Village 7th Filing. Applicant: Vail Resorts, Inc. Planner: Bill Gibson STAFF APPROVED Affirmed Approved 9123/02 7. Approval of August 26, 2002 minutes MOTION: Doug Cahill SECOND: Rollie Kjesbo VOTE: 5-0 APPROVED AS READ 8. Information Update The applications and information about the proposals are available for public inspection during regular office hours in the project planner's office located at the Town of Vail Community Development Department, 75 South Frontage Road. Please call 479-2138 for information. Sign language interpretation available upon request with 24 hour notification. Please call 479- 2356, Telephone for the Hearing Impaired, for information. Community Development Department 4 Approved 10/28/02 PLANNING AND ENVIRONMENTAL COMMISSION PUBLIC MEETING MINUTES Monday, October 14, 2002 PROJECT ORIENTATION / -Community Development Dept. PUBLIC WELCOME MEMBERS PRESENT Site Visits 1. Zuckerman residence - 2943 Bellflower Drive 2. Ice Rink at the Vail Golf Course - 1778 Vail Valley Drive 3. Public Utility at the Vail Golf Course - 1778 Vail Valley Drive 4. Outdoor Recreation zoned properties 5. Sonnenalp Hotel Addition/Swiss Chalet Redevelopment - 20 Vail Road Driver: George 11:00 am 12:30 pm NOTE: If the PEC hearing extends until 6:00 p.m., the board may break for dinner from 6:00 - 6:30 Public Hearing -Town Council Chambers 2:00 pm A request for a recommendation to the Vail Town Council of a proposed major amendment to Special Development District No. 4, Cascade Village, Development Area B, to amend the setback requirements as indicated on the approved development plan, located at Coldstream Condominiums, Unit # 25, 1476 Westhaven Drive /Lot 53, Glen Lyon Subdivision. Applicant: James and Jane Kaufman, represented by Fritzlen Pierce Architects Planner: Allison Ochs Allison gave a presentation of the staff memorandum dated 10/14/02 Bill Pierce represented the applicant, Jim Kaufman and was available to answer any questions the Commission may have of the application. He stated his concerns with the amendment procedure and asked that this application be reviewed as a minor amendment. John Schofield asked for public comment. There was none and the public comment was closed. Gary Hartman expressed his concern with the application as submitted and felt that this request was difficult to support. Doug Cahill asked Allison to cite section 12-9A-2 for the Commission. (Minor Amendment) Chas Bernhardt stated that setbacks are designed, in part, to protect adjacent properties. He felt that the application was supportable, as there would be no negative impacts to the adjacent properties. Rollie Kjesbo questions the procedural requirements of a minor amendment vs. a major amendment. He stated that he was in support of the application as submitted. MEMBERS ABSENT George Lamb concurred with both Rollie and Chas and felt that the proposal was in compliance with the review criteria. Approved 10/28/02 John Schofield felt that there was no reason to support the application. He stated that as an SDD that the application had to be reviewed based upon the SDD review criteria. He asked the Commissioners for any additional comments. Doug Cahill asked for further clarification of the amendment procedural. Chas Bernhardt made a motion to recommendation approval of the applicant's request as submitted. George Lamb seconded the motion. Chas Bernhardt amended the motion, finding that the application was a minor amendment pursuant to Section 12-9A-2 of the Vail Town Code. George Lamb seconded the motion. The vote passed by 6-1, with Erickson Shirley opposed. Chas Bernhardt moved to approve the setback amendment request as submitted and in accordance to the findings outlined in the staff memorandum. George Lamb seconded the motion. The vote passed by a vote of 4-3, with Gary Hartman, Erickson Shirley ahd John Schofield opposed. 2. A request for a final review of a variance from Section 12-6D-6 (Setbacks), Vail Town Code, to allow for an addition within the required setback, located at 2943 Bellflower Drive/ Lot 4, Block 6, Vail Intermountain. Applicant: Alan Budd Zuckerman Planner: Warren Campbell Warren Campbell made a presentation to the Commission, pursuant to the staff memorandum. Bud Zuckerman introduced himself and stated that he was available to answer any questions. Rollie Kjesbo was in agreement with the staff memorandum. He added that it had already the numerous examples found in the memorandum provided evidence that this would not be a granting of special privilege. George Lamb concurred. Gary Hartman had no comment. Doug Cahill had no comment Chas Bernhardt had no comment John Schofield added that over the course of numerous variance requests along Bellflower Drive it had been determined that there was a hardship as the homes were built under unincorporated Eagle County requirements prior to annexation into the Town. 2 Approved 10/28/02 Rollie Kjesbo moved to approve the application as submitted, with the findings and conditions listed in the staff memorandum George Lamb seconded the motion The motion passed by a vote of 7-0. 3. A request for a worksession to discuss a proposed major exterior alteration; a conditional use permit to allow for a fractional fee club in the Public Accommodation zone district; a text amendment to Section 12-7A-3 (Conditional. Uses) to allow for retail uses in excess of 10% of the total gross residential floor area of the structure as a conditional use; and a variance from Section 12-7A-10 (Landscaping & Site Development), Vail Town Code, to allow for a deviation from the total landscape area requirement, located at 20 Vail Road, 62 E. Meadow Drive, and 82 E. Meadow Drive/Lots K & L, Block 5E, Vail Village 1St Filing. Applicant: Sonnenalp Properties, Inc., represented by Braun Associates, Inc. Planner: George Ruther/Warren Campbell John Schofield stated that the discussion today would focus on the addition to the Sonnenalp Hotel only with additional issues being discussed at a later meeting. George Ruther presented an overview of the staff memorandum. Dominic Mauriello presented an overview of the project. He stated that they wanted to focus the discussion on the hotel addition at the Sonnenalp. He highlighted the changes that have been made from the last presentation, specifically pointing out where the setbacks have been increased. Bill Amass, president of Talisman Homeowners Association, stated that they have had concerns about setbacks from their property. He stated that it appears that it went higher than 48 ft. and closer than the drawings they originally approved. John Schofield stated that this application is contingent upon the Talisman's approval as the application will come in on behalf of both the Sonnenalp and the Talisman. Mike Foster, architect with Resort Design Associates, stated that the building has actually reduced in height, except for the architectural projection. With regards to setbacks, he stated that a portion of the building did get closer to the Talisman property, but that the spa area has actually moved further from the Talisman. John Schofield closed the public comment portion of the hearing. Gary Hartman stated that the massing of the building feels better than last time and said his concerns are based on the Sun/Shade impact and how the pedestrian walkway/arcade will work and wondered if the arcade could be broken up a little more. He said he would like to see some site sections across Meadow Dr. to understand how the pedestrian experience feels. Doug Cahill agreed with Gary and also requested profiles of how the building steps. He thought that beyond the first level, the building would step back dramatically and the sun/shade impact would be reduced. He further stated that the east/west alignment made sun/shade extremely important. Erickson Shirley agreed with the concerns with the sun/shade, the mass, and the pedestrian experience. He voiced his concern that in Beaver Creek, the pedestrian areas are always in the shade, which makes for a very cold environment and the pedestrian experience is impacted. He also had concerns about views and that decks along the street are popular, 3 Approved 10/28/02 and it would be beneficial to maintain these and stated that it's a benefit to all not to make the street too cold. Rollie Kjesbo was pleasantly surprised to see the changes and asked if they had any contact with the Vail Village Inn Phase V. Dominic Mauriello talked about the open houses they have had and the limited response from the Vail Village Inn. George Lamb reiterated his fellow Commissioners' comments. He encouraged the applicant to continue working with the Planning and Environmental Commission. John Schofield requested that the applicant provide the exact setbacks on the. plans and in future presentations. He stated that they will need additional information regarding the 10% retail requirement and stated that there is a common advantage for both the Sonnenalp and the Talisman to get together and make it work. He requested information about the garage and being impacted by the sewer line. Mike Foster clarified the issues with the sewer line and said relocating it only picked up about 5 spaces, which wasn't economically feasible. John Schofield stated that they would only see this project again once the Urban Design Consultant was on board, and once the issues with the Talisman have been resolved. George Ruther stated that there is no future hearing scheduled at this time. 4. A request for a recommendation to the Vail Town Council, to allow for a text amendment to Section 12-8B-3 (Conditional Uses), Vail Town Code, to allow for "seasonal use or. structure" as a conditional use in the Outdoor Recreation zone district; text amendments to Section 12-2-2 (Definitions), Vail Town Code, to amend the definitions of "seasonal use or structure," "recreation structure," and "recreational amenity," and setting forth details in regards thereto; and a request for a conditional use permit, to allow fora "seasonal use or structure," in the Outdoor Recreation zone district, located at 1778 Vail Valley Drive/an unplatted tract of land within Section 9, Township 5 South, Range 80 West. of the Sixth Prime Meridian generally located directly north of Lot 3, Sunburst 3`d Filing within the Vail Golf Course. A complete metes and bounds description is available at the Department of Community Development. Applicant: Vail Junior Hockey Association and the Vail Recreation District Planner: Bill Gibson Bill Gibson gave a presentation per the staff report. Rick Pylman represented the Vail Hockey Association and VRD. He talked about how the facility has been in use the past two winters and so there was not a whole lot to add in regards to the vision of the project. He stated that the increase in hockey and figure skating participation is the reason another ice rink is needed. He said Dobson is under increased pressure for use by non-ice events. He said he is requesting an extension to the previous approval and again noted the need for the facility. Rick Rogers stated he was a full time resident of Vail with a daughter who plays on a team and so he supports the bubble and said it is a win-win situation for everybody. He said it was nice to have two sheets of ice during tournament play. He said the location on recreational land is great, since golf is during a different season of use and the parking lot exists currently, which is great. 4 Approved 10/28/02 Heather Cunningham spoke as captain of a women's hockey team saying that her team cannot get ice time at Dobson, as established teams occupy all the time. Jeff Burell representing the Vail Golf Course Townhomes owners near the proposed site, said he would like to see a time frame placed on the conditional use permit and set hours for usage by the public, as the public use got bumped quite often for hockey. Mike Spriggs, also with Phase 111 of the Vail Golf Course Townhomes, added to Jeff Burell's comments. He thinks the addition of this use as a conditional use in all Outdoor recreation districts should be more specific in what can be down. He said the time frame of the use needs to be limited in when it can be put up and that it must be down by a particular date and he said there needs to be a change to the addition of the conditional use in Outdoor recreation District. Debbie Webster, the founder of the Vail skating club and a supporter of skating, fives on Sunburst and has one of the best views of the bubble .from her home. She said she does not understand how the bubble could be visually mitigated. She wants to have a time limit placed on the bubble. She said she thinks that groups wanting or needing more ice time need to get together and develop a plan for a permanent location. She said the noise of construction and destruction is worse than all her previous concerns of years past. Gretchen Busey lives on Sunburst Drive and represents 17 other homeowners. She said they all rely on zoning to protect property values. She brought up covenants on the property and verbiage regarding outdoor recreation and added that snow removal occurs late at night and is very noisy. She does not believe the proposed site is appropriate and she also brought up that many homeowners did not receive notice. She asked why the proposal is being made and what it includes. Laurie from the Vail Hockey Association, would like to see the Board approve the proposal as is with regards to it coming back every two years. Willow Murphy is a business owner in the area and plays on a hockey team with several members who are full time Vail residents and supports the ring and the need for- ice which is definite every year. Mr. Brunnel representing Vail Golf Course Townhomes and stated that in general they are in support of this, but not in perpetuity. He said they share in the spirit of public cooperation. Piet Peters with the Vail Recreation District said that it has been Council's goal to bring recreation back to Vail from down valley and it is great to have support from the townhomes. Tom Suffield wanted to piggy back on Piet Peters comments and added that the Town made a big commitment in purchasing the bubble. Ross Davis Jr. stated that concrete and utility hookups exist in the current location and there is noway the bubble location will be moving due to the high expense of the infrastructure already in place. Erickson Shirley asked Bill Gibson about items which were stricken in a definition included in the staff report. Bill Gibson stated that all proposals would still come before the PEC for approval and conformance with existing planning documents. He also added that all Outdoor Recreation zoned properties are owned by the Town, so all applications must be accompanied by Town authorization. 5 Approved 10/28/02 Rollie Kjesbo asked Piet Peters about trash and that there needs to be separation of recreational skiers from hockey skiers. He also asked Larry Pardee about when snow removal occurs. Piet Peters stated that the facility is used by snowshoers, cross country skiers and hockey. He said he has people on staff that clean up trash. Larry Pardee stated that snow removal proposed a challenge for him, especially with the budget cuts made this year. George Lamb was glad to see the public input and feels this has been very constructive. He said he was not on the PEC two years ago, but he felt this was a temporary solution and feels like people are looking at this as a permanent solution. He said in the work session he talked about placing a time limit on the operation, such as five or three years. He thinks groups need to start looking for a permanent location. Gary Hartman stated that this is an amenity the Town needs, but thinks there needs to be a time limit placed on the use. He also added that the zambonie structure either become permanent or be removed. Doug Cahill was concerned about construction noise and trash and asked Piet Peters at what time does he need the structure to be up. Piet Peters stated that October 15'h of each year would work. Doug Cahill asked Bill Gibson about the sticking to of building standards. Bill Gibson stated that because the structure has been reviewed previously, it does not need a review; however, building and fire will need to inspect the structure for egress and safety compliance. Erickson Shirley stated that he snowshoes there often and he saw no abuse in his visits to the site. He feels the conditions do a good job addressing any problems. He stated that a time frame during this economic climate is tough, as there are many projects the community could benefit from and said he supports a longer time frame of approval. John Schofield stated that he visits the site almost daily and the only traffic he encountered was created by the dog show. He said he has mixed feelings regarding a time frame being placed on this, as there has been an outdoor hockey ring there for ten to 15 years. He said regarding property values, he has lived in the neighborhood for 15 years and he has not seen property values go down. He does agree on placing a time frame restriction with regards to usage during the year. He then asked Larry Pardee what sort of time frame is reasonable, in regards to snow removal. Larry Pardee stated that it is difficult to make a comment regarding time frame of snow removal, as the amount and times of snow fall are unpredictable. He does understand the need and goal of the Commission. John Schofield added that he felt that the Vail Recreation .District should be in charge of scheduling the bubble with regards to times and usage. Doug Cahill made a motion to forward a recommendation of approval to the Town Council for the proposed text amendments based upon the criteria and findings in the staff memorandum. Gary Hartman seconded the motion. 6 Approved 10/28/02 The motion passed by a vote of 6-0. Doug Cahill moved to approve a seasonal use structure on the golf course, with the criteria and findings in the staff report and with additional changes to conditions that a site plan be used to describe the location, that snow be removed from the parking lot in a timely manner with 75 percent of the lot being available for weekend use, with an overall time frame of no more than 3 years and that a memorandum of understanding be in place regarding scheduling and that the zamboni structure become permanent, or be removed along with the bubble each year. Gary Hartman seconded the motion. The motion passed by a vote of 6-0. 5. A request for recommendation to the Vail Town Council, to allow for a text amendment to Section 12-8B-3 (Conditional Uses), Vail Town Code, to allow for "public utility and public service uses" as a conditional use in the Outdoor Recreation zone district and setting forth details in regards thereto; and a conditional use permit, to allow fora "public utility and public service use" in the Outdoor Recreation zone district, located at an unplatted parcel within the Southwest Quarter of Section 3, Township 5 South, Range 80 West of the Sixth Prime Meridian, generally located south of the I-70 right-of-way, north of Gore Creek, and west of 2450 Frontage Road East (Water Treatment Plant) within the Vail Golf Course. A complete metes and bounds description is available at the Department of Community Development. Applicant: Public Service Company of Colorado Planner: Bill Gibson Bill Gibson reviewed the request and the staff memorandum. AI Morganfield, from Excel Energy, reviewed the need for more gas in the neighborhood. Doug Cahill asked about whether the structure would be safe from car impact with its close proximity to the Frontage Rd. AI Morganfield replied that their engineers did not consider this a high risk location. John Schofield asked about site coverage in the OR Zone District. Bill Gibson reviewed the zoning code definitions and how public utilities do not count towards site coverage. Rollie Kjesbo recommended approval of the text amendment, with the findings listed in the staff memorandum. George Lamb seconded the motion. The motion passed by a vote of 6-0. Rollie Kjesbo recommended approval of a conditional use permit with the findings and the conditions in the staff memorandum. George Lamb seconded the motion. The motion passed by a vote of 6-0. 7 Approved 10/28/02 6. A request for a worksession to amend Chapter 12-15 (Gross Residential Floor Area), Vail Town Code, to discuss modifications and/or elimination of the Gross Residential Floor Area regulations in all zone districts and setting forth details in regards thereto.. Applicant: Vicki Pearson, et.al. Planner: Russell Forrest Russ Forrest presented an overview of the staff memorandum and said that some of the items for discussion included the impacts. on eliminating GRFA as EHU's incentives and if GRFA should be amended in all zone districts. Erickson Shirley asked for clarification on the scope of the amendments as applied to different types of residences, versus different zone districts. Kyle Webb presented the applicant's proposal. Erickson Shirley asked if single family residences in multiple districts can be subject to differing controls of GRFA. He also noted concerns about equity. Kyle Webb noted how the specifics of the changes and specific circumstances will need to be examined. Larry Eskwith noted that there are other methods to control bulk and mass. He also noted that GRFA regulations are the most violated section of the zoning ordinance. He said the regulations have been modified and they still do not work. Dorothy Branning noted that numerous individuals have paid the application fee for GRFA and people have complied to it over the years. Kyle Webb noted that there are currently 75 signatures on a petition to eliminate GRFA. Dave Hilb commented on how GRFA amendments could simplify the review process. Greg Cummings noted the purpose statement on GRFA, as a control of bulk and mass and stated that this is not an effective tool. He also noted the desire for many people to upgrade their homes. John Schofield commented that he is a proponent of eliminating GRFA. He proposed that with the appropriate parameters, GRFA should be eliminated. He felt that eliminating GRFA could simplify the process (not necessarily increasing the size of homes). He recommended that the housing authority comment on possible incentives for EHU's. He noted that any benefits of GRFA are far outweighed by live safety issues that are currently being compromised. He said site coverage will need the greatest focus in terms of limiting building bulk and mass and noted that input from the DRB will be needed as this proposal is reviewed. He said landscape area requirements may also need to be adjusted. He said he would prefer to eliminate all GRFA, but thinks that first changing the three residential districts would be appropriate. He recommended the outcome be similar in impact to current home sizes and recommended a joint session with the Town Council. Erickson Shirley stated that he can't understand why we need GRFA, as long as safety issues are addressed. He asked if the concern was that no GRFA will create the building of a box. Russ Forest replied to Erickson that that was an initial concern, but design review guidelines prevent the building of a box. Gary Hartman questioned if lot size and home sizes have been compared. Approved 10/28/02 Russ Forrest noted the information provide in the staff memorandum. Erickson Shirley asked how homes in Edwards are controlled. Russ Forrest replied that floor area is restricted, but in a much simpler manner. Gary Hartman noted that he feels GRFA is unfair in that some individuals can not afford architects who can avert the regulations, or construct false walls and rooms. John Schofield asked if the PEC was opposed to larger homes. Erickson Shirley replied that larger homes are alright if they fit the size of the lot, and people shouldn't only get caught up in square footage. Doug Cahill believes that GRFA has served a purpose in controlling bulk and mass, but now is the appropriate time to take another look at GRFA. He is concerned about impacts on redevelopment. He also noted that DRB controls need to be considered and incentives for EHU's will also need to be reviewed. Gary Hartman is in favor of eliminating GRFA in all zoning. He disputed some of the "negatives" of eliminating GRFA, as noted in the staff memorandum. George Lamb noted that he is in favor of eliminating GRFA. Rollie Kjesbo noted he is in favor of eliminating GRFA somehow. He feels it will create safer building constructed in a logical manner and he noted that larger lots should be allowed to build larger homes. John Schofield recapped that the PEC is unanimously in support of a change, and most support the elimination of GRFA. He said there is a need to examine site coverage, how to encourage EHU's, how to regulate parking requirements, how to strengthen DRB requirements, we need to examine homes in located in other zone districts, how to address landscaping requirements, and suggested a work session with the Town Council. He asked staff to update the information on how other communities deal with bulk and mass and explore requiring architects to serve on the DRB. 7. A request for a recommendation to the Vail Town Council, to allow for text amendments to Title 11, Sign Regulations, Vail Town Code, and setting forth details in regards thereto. Applicant: Town of Vail Planner: Russell Forrest Doug Cahill made a motion to table this until October 28, 2002. Gary Hartman seconded the motion. The motion passed by a vote of 6-0. 8. A request for a text amendment to Sections 12-7H-11 & 12-71-11, Vail Town Code and the Lionshead Redevelopment Master Plan to allow for a clarification to the maximum height and calculation of average maximum height requirements for building constructed in the Lionshead Mixed Use 1 and the Lionshead Mixed Use 2 zone district, and setting forth details in regard thereto. Applicant: Town of Vail Community Development Department Planner: George Ruther 9 Approved 10/28/02 George Ruther presented an overview of the staff memorandum and requested that today's discussion be a worksession. He said that staff will further examine the proposed options in greater detail and present them to the PEC at a later date. He said staff was comfortable with the proposed measurement methodologies, but welcomed further input and that staff will further define primary roof ridges, interpolated grades, and other terms. Dominic Mauriello noted that they are working on several applications and understand the need to clarify the height regulations. They liked the idea of examining the heights of roof areas. He recommended examining how dormers are reviewed in the interior conversion regulations. Erickson Shirley recommended fixing as much as possible, but having a fail safe to resolve issues that can't be resolved by the letter of the law. George Lamb tabled this until November 11, 2002. Doug Cahill seconded the motion. The motion passed by a vote of 6-0. 9. A request for a worksession to discuss a recommendation to the Vail Town Council for an amendment to the Town of Vail Land Use Plan and the Vail Village Master Plan, to facilitate the construction of "Nail's Front Door" project and associated improvements and setting forth details in regards thereto, located on an unplatted parcel, generally located south of the Lodge Tower and west of the Vista Bahn Ski Yard. Amore complete metes and bounds description is available at the Department of Community Development. Applicant: Vail Resorts Development Company Planner: George Ruther TABLED UNTIL OCTOBER 28, 2002 Doug Cahili made a motion to table this until October 28, 2002. Gary Hartman seconded the motion. The motion passed by a vote of 6-0. 10. A request for a modification to the 100-year floodplain, to allow for grading in the floodplain to modify the Gore Creek Whitewater Park, located at the Gore Creek Promenade/Tracts I & A, Block 5B, Vail Village 1St Filing, and setting forth details in regards thereto. Applicant: Town of Vail, represented by Gregg Barrie Planner: Bill Gibson TABLED UNTIL NOVEMBER 11, 2002 Doug Cahill made a motion to table this until November 11, 2002. Gary Hartman seconded the motion. The motion passed by a vote of 6-0. 11. A request for a recommendation to the Vail Town Council of an amendment to Section 12-7A-7 (Height), Vail Town Code, to increase the maximum allowable building height in the Public Accommodation zone district and setting forth details in regards thereto. 10 Approved 10/28/02 Applicant: Bob Lazier, represented by Jay Peterson Planner: George Ruther/Warren Campbell WITHDRAWN 12. Approval of September 23, 2002 minutes 13. Information Update Doug Cahill made a motion to adjourn. Rollie Kjesbo seconded the motion. The motion passed by a vote of 6-0. The applications and information about the proposals are available for public inspection during regular office hours in the project planner's office located at the Town of Vai! Community Development Department, 75 South Frontage Road. Please call 479-2138 for information. Sign language interpretation available upon request with 24 hour notification. Please call 479- 2356, Telephone far the Hearing Impaired, for information. Community Development Department 11 _--~ t 1 7 ' ~ i ~ '~ ~ •\ . 0 '~ o • c.~ n x x H O Cr] :V H 0 z a 0 x H x 0 x H O 0 0 - ~S~M4.~p R I ~!~ ~ E ~G. H"i"- . ~F~h"r o~ Mh~3ARD ~D~~ CI°~1~'~~ a'b0~~ <. ORDINANCE NO. 18 Series of 2003 AN ORDINANCE AMENDING SECTION 12-2-2, DEFINITIONS, TITLE 12, ZONING REGULATIONS, VAIL TOWN CODE, TO ADD TERMS USED IN THE DETERMINATION OF BUILDNG HEIGHT TO THE LIST OF DEFINITIONS, 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 January 13, 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. 18, Series of 2003 ,a- NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Sections 12-2-2 of the Vail Town Code shall hereby be amended as follows: (deletions are shown in ~+r;U^ +"•^, ~^"/additions are shown bold) PRIMARY ROOF RIDGELINE, ASSUMED: The established centerline portion of a flat or mansard roof and/or the sloping ends of a gambrel or hip roof used in the determination of building height in the Lionshead Mixed Use 1 and 2 zone districts and as determined by the administrator. See figures 8-15(a-c) in the Lionshead Redevelopment Master Plan for additional clarification. PRIMARY ROOF RIDGELINE: Generally the highest or most dominant roof ridgeline(s} atop a building mass or series of building masses used in the determination of building height in the Lionshead Mixed Use 1 and 2 zone districts. See figures 8- 15(a-c) in the Lionshead Redevelopment Master Plan for additional clarification. PRIMARY ROOF: A roof which covers 500 or more square feet of building area. A primary roof shall not include required secondary roof forms, dormers, architectural projections, covered entryways, shop front colonnades, awnings, louvers, Porte cocheres, covered decks, and other similar roof forms. This definition is used in the determination of building height in the Lionshead Mixed Used 1 and 2 zone districts. See figures 8-15(a-c) in the Lionshead Redevelopment Master Plan for additional clarification. DORMER: An architectural structure projecting out from a sloping roof of a building designed to provide light, air, access, or interior volume to a space and usually containing a vertical window or ventilating louver, having a gable or shed roof, in which the total cumulative length of the dormer(s) does not exceed fifty percent (50%) of the length of the sloping roof, per roof plane, from which the dormer(s) projects. GRADE, INTERPOLATED: The re-established topographic conditions of a development site expressed in two-foot contour intervals and determined by connecting surveyed spot elevations located at 10-foot intervals around the perimeter of a property boundary and used in the determination of maximum allowable building height. Section 2. 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, Ordinance No. 18, Series of 2003 2 sentences, clauses or phrases be declared invalid. Section 3. 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 4. 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 5. 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. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 5th day of August, 2003, and a public hearing for second reading of this Ordinance set for the 19th day of August, 2003, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. ATTEST: Lorelei Donaldson, Town Clerk Ludwig Kurz, Mayor Ordinance No. 18, Series of 2003 3 READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 19th day of August, 2003. Ludwig Kurz, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance No. 18, Series of 2003 4 RESOLUTION No. 8 Series of 2003 A RESOLUTION AMENDING CHAPTER 8, ARCHITECTURAL DESIGN GUIDELINES, SECTION 8.4.2.3, BUILDING HEIGHT, LIONSHEAD REDEVELOPMENT MASTER PLAN, TO CLARIFY THE BUILDING HEIGHT CALCULATION METHODOLOGY PRESCRIBED BY THE PLAN, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on December 15, 1998, the Vail Town Council adopted the Lionshead Redevelopment Master Plan; and WHEREAS, Chapter 2, Introduction, Section 2.8, Adoption and Amendment of the Master Plan, provides a procedure for amending the Lionshead Redevelopment Master Plan; and WHEREAS, by their nature, master plan documents are intended to be evaluated and amended from time to time to respond to changes in conditions since the adoption of the plan or changes in community goals and objectives; and WHEREAS, the Town of Vail Community Development Department has submitted an application, pursuant to Chapter 2, Section 2.8, of the Lionshead Redevelopment Master Plan, to amend the text and figures of the Plan in response to demonstrated conflicts that exist within the Plan since the adoption of the Plan; and WHEREAS, the Town of Vail Planning and Environmental Commission held a public hearing on the application to amend the Lionshead Redevelopment Master Plan on January 13, 2003, and has forwarded its recommendation of approval of the amendment to the Vail Town Council; and WHEREAS, in forwarding a recommendation of approval to the Vail Town Council, the Town of Vail Planning and Environmental Commission finds that the amendments are in the best interest of the Town of Vail as they further the public health, safety, and general welfare of its citizenry ;and WHEREAS, the Vail Town Council finds that the master plan amendment is consistent with the intent and purpose of the Lionshead Redevelopment Master Plan and is in concert with the goals, objectives, and policies of the Vail Comprehensive Plan; and WHEREAS, the Vail Town Council finds that demonstrated conflicts exist within the Plan since the adoption of the Plan that necessitate the amendment the Lionshead Redevelopment Master Plan; and WHEREAS, the Vail Town Council finds that the master plan amendment furthers the development objectives of the Town and is in the best interest of the Town as it promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as the "Premier Resort Community." NOW, THEREFORE, be it resolved by the Town Council of the Town of Vail, Colorado: Section 1. The Vail Town Council approves by resolution the following text amendments to the Lionshead Redevelopment Master Plan: Chapter 8, Section 8.4.2.3 (in part): Absolute Maximum Heights Absolute Maximum Height is defined as the vertical distance from existing, finished or interpolated grade -whichever is more restrictive - to the ridge of the nearest primary roof form to that grade. With this in mind, the Average Maximum Height of any building shall not exceed 71 ft. Notwithstanding the notion of Average Maximum Height, the Absolute Maximum Height of any building shall not exceed -82.5 ft. Within any building footprint, height shall be measured vertically from the ridgeline of the primary roof form on a proposed or existing roof to the interpolated or existing grade directly below said point on a proposed or existing roof to the imaginary plane created by the interpolated grades (see Figure 8-15a-c) Calculation of Average Maximum Height The intent of implementing an Average Maximum Height for buildings is to create movement and variety in the ridgelines and roof forms in Lionshead. Toward that end, the Average Maximum Height of a building shall be calculated based upon the linear footage of ridgeline along primary roof forms. Any amount of primary roof form ridgeline that exceeds 71 ft. must be offset by at least an equal amount of primary roof form ridgeline falling below 71 ft., with the distance below 71 ft. equivalent to or greater than the distance exceeding 71 ft. The average calculation shall be based on the aggregate linear footage of primary roof forms across an entire structure, not separate individual roof forms (see Figure 8-15c) Average Maximum Height Calculation Average Maximum Height = [Primary Ridge Length (A) X Average Height of Ridge (A)] + [Primary Ridge Length (B) X Average Height of Ridge (B)] +[Primary Ridge Length (C) X Average Height of Ridge (C}] +[...] [Primary Ridge Length (A) + Primary Ridge Length (B) + Primary Ridge Length (C) + (......)] Additional Requirements/Exceptions All buildings, regardless of permitted building heights and massing principles, shall conform to all established Public View Corridors (see Lionshead Redevelopment Master Plan). Special "landmark" building elements, such as chimneys, towers, or other unique architectural forms, may exceed the Absolute Maximum Height, subject to approval by the reviewing board. This provision is intended to provide for architectural creativity and quality of building. form, and shall not be used as a means or circumventing the intent of the building height limitations. In addition, regardless of final building height, buildings shall avoid monotonous, unbroken ridge lines, and shall provide visual interest through the use varied peak heights, roof forms, gables, and other appropriate architectural techniques Section 2. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall in no manner affect any remaining provisions of this resolution, the intent being that the same are severable. Section 3. All resolutions or parts of resolutions inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any resolution or part of any resolution heretofore repealed. INTRODUCED, READ, APPROVED AND ADOPTED this 5"' day of August, 2003. Ludwig Kurz, Mayor, Town of Vail Attest: Lorelei Donaldson, Town Clerk, Town of Vail PRIMARY ROOF RIDGE LINE D PRIMARY .IDGE LINE PERSPECTIVE FIGURE #1 ,\/ ~~` ~ PRIMARY ~ RooFFORM ~ ~ i r i i i 1 ~ I SECONDARY I I I / I ROOF FORM / TOWER -SPECIAL ASSUMED PRIMARY LANDMARK ELEMENT ROOF RIDGE LINE / I I f t, f I ~ ~ / ' I 3 ~' I . ~`--:J Q / /~ PROPERTY LINE / PRIMARY ROOF I ~``~ ', I ~ ~~/// I / RIDGE LINE ' $ ~~~ ~' I ~ I I i D ,~~ ~ -~ i ,~ I ~ 1 1 ~ ~ ` F i I B o ~ I I o ~ t t.._.., -..~.. ,, I ~ I~~ I E ~c t..M~ ,.;:,.. 1 + ~ I II ~; ..~,~, 1 I I I ~, I I SECONDARY I j I IRooFFORM I \ I I I 1 ~ I I I \ ~ I I I \ II 8110 II 8120 \\ 8130 \\ 8140 .. .. .. .. SURVEYED SPOT ELEVATION AT LO' I~EIGHT INTERVALS I t I I I I \1 \ I I I I 1 I 1 ~~...,...dG OR INTERPOLATED GRADES ASSUMED PRIMARY ROOF RIDGE LINE ROOF PLAN FIGURE ~$2 ASSUMED PRIMARY ROOF RIDGE LINE PRIMARY ROOF RIDGE LENGTH D - C B Avc. HEIGHT = H1 + H2 2 ~ASSUMED~ PRIMARY ROOF RIDGE LENGTH ~1 E TOWER -SPECIAL LANDMARK ELEMENT ! j I i i i f~ ~x~ ~ x x I' x ca ; ~ w! w' x~ ~ x 1, _, ,. __ .~ - -- _-- ~= ~ ~ - ~ ~ _ _ .~ /`--"` T ~ ~ INTERPOLATED OR ''' FINISHED GRADE I EXISTING GRADE .r+ u~inxPOLATED OR EXISTING GRADE EQ ~' EQ ~ i c __ ~ _ __ ~ ` I'. x w, O' Q' ~'' Q'' w': ~. v~ ; a ~ ASSUMED RIDGE HEIGHT FLAT OR MANSARD ROOF FIGURE #3 RIDGE HEIGHT MEMORANDUM TO: Vail Town Council FROM: Pam Brandmeyer, Interim Town Manager RE: Town Manager's Report DATE: August 5, 2003 Hanson Ranch Road Waterline Replacement Project Attached is a communications plan prepared by the Eagle River Water and Sanitation District regarding the upcoming Hanson Ranch Road waterline replacement project, which is scheduled to begin Sept. 2. This plan has been reviewed by TOV staff and Sybill Navas, representing the Commission on Special Events. It will also be presented to the Vail Chamber and Business Association membership during the August meeting. If you have additional comments about the plan, please contact Marian Miller, the district's on-site public relations manager, at 476-7480. Once in place, we intend to use a similar communications plan for the streetscape improvements and continued waterline replacement work next spring and fall. Empty Retail/Restaurant Space Empty retail and restaurant space in Vail was recently discussed during the July 17 Vail Economic Summit meeting. There are a total of 199 TOV retail establishments and 110 restaurant establishments. As of July 15, 22 retail establishments were vacated (11 percent) and eight restaurant establishments were vacated (7 percent). Overall, 10 percent or 30 establishments are vacated. (See attached.) Consolidated Fire and Emergency Medical Service (EMS) An agenda item has been scheduled for the evening meeting to request funding of up to $10,000 to study the impacts, pro and con, of consolidated fire and emergency medical service. Potential cost-share partners include Vail Valley Medical Center, Eagle River Fire Protection District, Beaver Creek Metro District, Eagle County Ambulance District and Western Eagle County Ambulance District. The timing of such a study is ideal in that it would assist us in our ongoing consolidation discussions with the Eagle River Fire Protection District and Beaver Creek Metro District, as well as provide additional insight in the design of a West Vail fire station. If there is interest from the other partners, we are proposing to assist in hiring Gary Ludwig of the Ludwig Group, LLC, based in St. Louis, Missouri. The study would take approximately three months to complete at an estimated cost of $30,000. The firm comes highly recommended based on its experience in working with multiple agencies and providers, including career fire departments, volunteer fire departments, combination fire departments, hospital- based systems, private ambulances, ambulance districts, communication centers and third service systems. A profile of the company is attached. UPCOMING ITEMS: August 19, 2003, Work Session November Ballot Discussion DRB/PEC Update. Conference Center Contract for Business/Market Plan Analysis Council Review of First Draft for 2004 Budget Discussion of EHU enforcement Paperless Packets Discussion August 19, 2003, Evening Meeting 2" Reading November Ballot Ordinance Review of Contribution Requests Resolution to Create Urban Renewal Authority Park User Fee Discussion 2°a Reading for Fire Station Second Reading of Ord. #9 for Four Season Resort re: SDD Second Reading of Ord. 10 for Four Seasons Resort re: Rezoning Vail Amoco Site Parking Discussion 1St Reading of Ordinance for GRFA Regulations 2"d Reading of Ordinance # 6 (Type II EHU) Discussion of Impact on Fractional Fee Units, Hotel Room Conversions Sign Code Discussion Public Communications Plan Hanson Ranch Road Waterline Replacement Project Eagle River Water and Sanitation District (District) plans to replace the water main infrastructure in Hanson Ranch Road this year to improve the reliability of domestic water service and improve the delivery of fire suppression water to the area. A Public Communications Plan will be created by Eagle River Water and Sanitation District., with input from Town of Vail staff, Vail Fire Department, Vail Police Department, and the Vail Chamber and Business Association. The purpose of this plan is to ensure direct and effective communication between the District and those who will be affected by the construction of this project. The proposed plan consists of the following: 1. Issue a press release, upon award of project to a qualified contractor, describing the construction project, area affected, potential impacts to businesses, property owners and town guests; 2. Issue a project description, similar in content to the press release, to VCBA members and core area property owners; 3. Conduct an open meeting with affected businesses and property owners, providing project presentation with exhibits and question/answerperfod; 4. Designate a District employee as On-Site Public Liaison. The liaison will make frequent personal visits to affected business and property owners, distribute project update flyers, be available to answer questions, forward comments/complaints to the appropriate parties, and hand out lollipops; 5. Create post-card sized information placard to hand out at public meeting and to affected business and property owners and other interested parties listing Public Liaison and Police Department (for traffic and delivery routing) contacts and phone numbers and the District's website. 6. Create project information flyer, to be updated weekly, including progress, upcoming activities, road closure and traffic routing information, etc. The flyer will be coordinated with the police department flyer to be handed out at Check Point Charlie. 7. Create a page on the District website containing the updated (weekly) project information flyer. 8. Publish weekly flier in The Vail Daily. 9. Issue a press release at the end of the project with description of level of success of the project, future projects and thank you's to the public and appropriate entities. 10. Provide additional meetings, press releases, written and verbal communications as warranted throughout the project. 4 .s.. Empty Retail/Restaurant Space Town of Vail Economic Vitality Discussions July 17, 2003 Total TOV retail establishments: 199 Total TOV restaurant establishments: 110 (includes restaurants, restaurants with liquor licenses, bars/taverns, and grocers) Number of vacated retail establishments as of July 15, 2003: 22 (^~11% of total retail) Number of vacated restaurant establishments as of July 15, 2003: 8 (^,7% of total restaurant) Total TOV vacated restaurant/retail establishments as of July 15, 2003: 30 (~10% of total restaurant/retall space) ,~.. • ~~ Ala ~a~~ant/.' n ....,r .............~ ..5'...r ,.n , c' ~,i~~- ~.r S- n (A!//~ ~..~ ~///~///;r r t I 1 a, 8+ ~ ~. , ,~-- i ~ . ,. ... ' ~..,..._, i F ,.. ..:~ 5...~ ~...? ,..il... r~'~. ... a,Y :, ,,,,,, ~~• 1" = 700' ,. ~/ ~~ / ~~~-' 1° = 500' ~ ~• •~ i' I ~`i, `~•} ,~ t \ •:t. & 6-.' ~y~e;. 5 5 a .. ,, ; , i ~. (.::..:; t::::.: i ~ ,' . i 't r l r~'`. ... ~. ,,,1 iii ~..., ~. .. .. - .rj."..,.. ~ ~,.-pia Ti • a ' i _ ._, • r,~.q,. _ ...., ,.,.. i i ti, ~~ ~ ,,. .. ! ... . ,.,..V.. .. . .. • ,; ~ ~ ~~i i'S? f~1 ~ ~'~ . ., .. ., , ~~ . _. ,. c. ~. ,..,, 2J ~~ ,~, ~ ~ ~ ~~~, _ t J ... . ;' <:_,. . ,: ~: ' , . ,.t, ., Y/::: ". .. .. ...... ."lr-~ ~... .. ~:.J ., ,_. ~ _ r . ~ .`~ ,.. ~. •. 4_t i; , t.......I ::1 'i ,a: Location #3/4 Vail Das Schone (rear) 2 vacancies Location # 1 West Vail, near Half Moon Saloon Location #2 Vail Das Schone (rear) Location #5, Vail Das Schone (front) Location #6 Vail Das $chone (front) Location #9 Lionshead (Shellman) Location.#7 Lionshead (dot cafe) Location #8 Lionshead (DJ McCads) Location #12 Lionshead Location #11 Lionshead (Jafas) Location #10 Lionshead (Travel Agency) Location #14 Lionshead Location #15!16 Lionshead i - ----L Location #13 Lionshead (One Track) Location #17 Lionshead Location #18 Lionshead Location #19 Lionshead (Max) Location #20 Lionshead (Boot Lab/Art Gallery ) Location #21 Vail Village (Panda City) Location #22 Vail Village (Craig's Market) Location #24 Vail Village (Village Center, Overland) Location #23 Crossroads (upper level, east side) Location #25 Vail Village (Artesia) Location #26 Vail Village (Bridge Street) Location #28 Vail Village (Vail Sports, lower level; seasonal) Location #29 Vail Village (Ski School, seasonal) Location #27 Vail Village (Bridge Street) Location #30 Vail Village (the Head Store) InursCiay, July;il, ZUU~ Z:;ib NM Gary Ludwig 636-/9/-3218 _~ p.p~ Vail Valley r ~ Colorado Proposal for Comprehensive Evaluation of CMS System _, ~ '' Prepared by: The Ludwig Group, LLC 9525 E. Vista Dr., Suite 200 Hillsboro, MO 63050 636/789-5660 r t ] u ly ~Op3 Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 j 'r Table of Contents Executive Summary Page 1 The Ludwig Group, LLC Page 2 Experience Page 3 Recent Projects Page 4 Preferred Client/Reference List Page 5 ,~ Project Director Page 6 Method/Plan for Completing Work Page 7 Additional Information Page 11 Gantt Chart Page 12 Resumes ~ Appendix A _,, ~ ~. p.u Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 p.04 !C Vail Valley EMS Study ~ '' Executive Summary The Ludwig Group, LLC is a professional public safieiy consul4ng firm specializing in the delivery of fire and emergency medical service delivery systems. In summary, The Ludwig Group is interested with assisting the emergency response agencies in the Vail Valley to conduct a complete study to provide a comprehensive review and recommendations for the delivery of emergency medical service in the Vai! Valley. As part of the analysis, The Ludwig Group will provide an assessment of the current system and provide a strategy for providing EMS in the most competent, effective, and cost-efficient manner possible. Along with the evaluation and study, recommendationswill be made in a variety of areas including organizational deployment, staffing, finance, etc. with the goal of achieving a high performance emergency medical service delivery system. Based upon the Request for Proposal, The Ludwig Group. will carry out a SWAT (Strength, Weakness, Opportunities, Threats) assessment with the intention of improving emergency medical services in the Township and the City. The recommendations provided in the report would serve as a template for future years. -~- The Ludv~ig~Group, LLC ~ '~ ]. ` ~ ]uly 2003 I hursday, July 31, 2003 Z:35 i'M Gary Ludwig 636-797-3218 p.05 . 'i Vail Valley EMS Study The Ludwig Group, LLC The Ludwig Group, LLC is a professional consulting firm specializing in the delivery of emergency medical service and fire delivery systems. The Managing Director for The Ludwig Group, LLC is Gary Ludwig. Mr. Ludwig retired from St. Louis Fire Department as the Chief Paramedic and EMS Bureau Chief. Mr. Ludwig is a much sought after consultant, national speaker, writer, and expert on fire and EMS system designs. He has confidentially consulted and customized solufions for both public and private sectors in the fire, EMS, and public safety field. ,~ In additior~i to Mr. Ludwig, the firm regularly utilizes more than a dozen full and perttme consultants for specific projects or components of a project. Many of these independent contractors have experience in organizational psychology, accounting, economics, healthcare, administration, public information and education, marketing research, emergency medicine, fire service administration, and law enforcement. The firm's success is attributable to its experience, its credibility and the solid consulting methodologies it develops and applies to reflect individual situations. System stakeholders are typically deeply involved in the consultation process. Our collaborative ap~toach facilitates support for implementation and long term system stability. Project research outcomes are identified within a framework that is community specific and characterized as having absolute integrity with respect to comprehensiveness, objectivity and accuracy. The Ludwig Group only works on one major project at a time! This approach allows for focus on the goals of the project and allows the firm to concerrtrate on the customer and their needs. Mr. Ludwig. or The Ludwig Group, LLC own no stock in any company involved in manufact ring ambulances, fire apparatus, fire equipment,. or providing healthcare services including EMS/medical transportation entities). And, consistent with the firm's policy, no employee or consultant individually may own any publicly traded or privately held company involved in the manufacturing of fire or ambulance equipment, or providing EMS delivery services in the United States. The Ludwig Group,. LLC is based in St. Louis, Missouri. The Ludwig Group, LLC _ _ 2 _ July ?OU3 Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 p.06 Vail Valley EMS Study Experience Since it inception, The Ludwig Group, LLC has earned a track record of helping organizations to improve the quality of care, decrease response times, increase financial effectiveness, and strengthen public trust in fire and EMS. The fire and EMS organizations that The Ludwig Group have consulted for indudes career fire departmerrts, volunteer fire departments, combination fire departrnents, hospital-based systems, private ambulances, ambulance districts, communication centers, and thud service systems. Some of the fire and EMS systems The~Ludwig Group has consulted for includes stuns as large as Chicago and Philadelphia, and as small as the Kirkwood Fire Departnt. Sons; of these projects have been a comprehensive and complete analysis of the entire system with a compilation of countless recommendations for improving the system. Other projects have included multiple agencies and providers who are integrated into one system, the development of Master Plans, or the development of specifications for apparatus. Additional projects have been minor in nature and may include a simple presentation to a City Council or City Manager on behalf of the system. ~ ~~ The Ludwig Group, LLC 3 July 2003 'r Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 p.07 Vail Valley EMS Study Recent Projects Organization Project Details -,cn. Muskegon (Ml) Fire Department Detailed organizational fire and EMS assessrr~nt ca abilities. Burnsville (Minnesota) Fire Department Assessment of response times, staffing, and en ine house locations. Chicago (Illinois) Fire Department Detailed assessment and recommendations for fire-based EMS ro ram. Papillion (NE) Fire Department Fire department organizational assessment and 20 ear Master Plan. Florissant (~VIO) Fire Protection District Assessment of EMS capabilities of fire ~ ~ de artment and rivate ambulance rovider. Monroe County, Michigan Assessment of over 23 fire departments,` Countywide EMS system, radio communications, and hazardous material ca abilities. Philadelphia (PA} Fire Department Development of assessment center for fire lieutenant and ca tain osition Kirkwood (MO) Fire Department Assessment of.overall plan for integration of fire-based EMS ro ram. Stockton (CA) Fire Department Assessrr~nt of"' detailed repb~'! of incorporation of EMS transport into the fire de artment. Bangor (Maine) Fire Department Assessment and implerr~ntation of non emergency transport system into fire de artment. Enfield Connecticut Or anizational assessment of EMS s stem Kirkwood (MO) Fire Department Development of fee schedule for EMS trans ort s stem Central Jedcson County (MO) Fire Assessment of EMS transport needs. De artrr jnt Needham MA Fire De artment Stra is tannin for fire and EMS s tem Lyndon Fire Protection District (Kentucky) Strategic planning for incorporation`of EMS into fire s stem The Ludwig Group, LLC 4 July'2003 Ti'wrsday, July 31, 20b3 2:35 PM Gary Ludwig 636-797-3218 p.ua Vail Valley EMS Study The following is a preferred client/reference list: Bangor (Maine) Fire Department Chief Jeff Cammack 2071942-6335 ~ ~ Chicago (Illinois) Pure Department Depuly Commissioner Larry Makattis 312/745-3471 Florissant Valley Fire Protection City (Missouri Chief John Wheadon 314/837-4894 North Thompsonv~le FPD (Connect~ut) Chief Earl Provencher 860!145-2946 Frenchtown Tovmship Fire Department (Michigan) Chief Ron Whipple 734/241-8853 'r Enfield FiretDepariment (Connecticut) Chief Ed Richards 860/745-1878 City of Stockton (California) Chief Andy Shapiro 209/937-8528 County of Monroe, Michigan Charles Londo (County Administrator) 734/240-7016 Chief Thomas Openlander Kirkwood (MO) Fire Department 314/822-5883 City of Papiltion Dan Hoins (Gil)t Administrator) 402/597-2029 Bedford Township Fire Department (MI) Chief John Bofra 734/847-6791 Needham Fire Departmenfi (MA) Chief Robert DiPol (781 /455-7580) .~ The Ludwig Group, LLC 5 Hwy zoos Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 _,,~ p,pg Vail Valley EMS Study ' r ' Gary Ludwig - Project Director The Managing Director for The Ludwig Group is Gary Ludwig. Mr. Ludwig is a recognized national fire and EMS expert, pioneering many concepts which are now standard practice in the fire and EMS profession. . Mr. Ludwig retired as the Chief Paramedic and EMS Bureau Chief for the St. Lo s Fire Department. He was employed full time with the City of St. Louis for 25 years, 22 years in a management capacity. Mr. Ludwig has earned a Bachelors degree in Business Administration and a Masters degree in Management and Business. Additionally, he is a licensed paramedic. Mr. Ludwig is in his fifth elected consecutive term as an EMS executive board member, currently sewing as Vice-Chairman, with the 13,000 member international Association of Fire Chie~:r Mr. Ludwig is also a contributing editor and writes a monthly column which appears i Firehouse Magazine. Mr. Ludwig also sits on the editorial review boards of Emergency Medical Service Magazine, and 9-1-1 Magazine. AdditionaNy, Mr. Ludwig is on the faculty of three colleges, American College of Prehospital Medicine, lJnivet~sity of Missouri Fire Rescue Institute, and Forest Park Community College (Fire Science program). Mr. Ludwig is also a principal member of the National Fire Protection Association EMS Technical Committee and a member of the Volunteer Section of the International Association of Fire Chiefs. Mr. Ludwig has authored over 250 articles in such publications as On Scene, Jgl~al of Emergency Medical Services, EMS Magazines, 9-1-1 Magazine, Fire Chief Magazine, Firehouse Magazine, and National Fire 8 Rescue. Additionally, he has made over 150 presentations at conferences or professional seminars in the EMS and fire profession. He volunteers as Chief of Special Operations for Jefferson County, Missouri and volunteers as a paramediclfirefighter for the Hillsboro Fire Protection District and the Goldman Fire Protection District. l 'r The Ludwig Group, LLC 6 July 2003 Thursday, July 31, 2003 2:35 PM Gary Ludwig 636=797-3218 p.10 ~~, Vail Valley EMS Study Method/Plan for Completing the Work _,~, We believe that a structured and disciplined methodology works to the advantage of both the fire department and The Ludwig Group. Further, it is our belief that the Vail Valley project should broken down into five major phases. The Ludwig.Group envisions the following implementafion phases: t ,r 1. Project Planning Phase 2. Information and Data Collection Phase 3. Analysis Phase 4. Draft Report Phase 5. Final Report Phase Project Planning Phase Within four weeks of award of contract, Mr. Ludwig will attend a kickoff meeting with the appropriate officials from Vail Valley to: (a) Identify the Vail Valley's critical EMS success factors and key management objectives for each task. (b) Verify key personnel to be interviewed and determine a tentative schedule for interviews, data gathering for each task. (c) Establish a firm project schedule to be followed. (d) Obtain i~pies of relevant documents surrounding the operation of the EMS system (i.e. bud~et, regulations, ordinances, SOPS, run data, past studies (etc.) The Ludwig Group will coordinate with all core group members to develop a detailed plan of action, assign tasks, and develop a schedule of events. -~ The Ludwig Group, LLC 7 July 2003 ~ nursaay, uury s~, ~uus 1:~b I'M Gary Ludwig 636-797-3218 p,11 _ ,~• Vaii Valley EMS Study ,, Informati~ n and Data Collection Phase. After review of the infomnation colt ected, Mr. Ludwig will travel to the Vail Valley #;o conduct a comprehensive analysis, including conducting interviews, discuss statistical infiormation, review planning documents, and goals with the key stakeholders in Vail Valley. The estimatedtime required to gather the necessary information and data is appro~amately one week or less. Analysis Phase ~ "~' The information collected and the findings will be analyzed and recommendations developed. It may be necessary to request additional information from the various emergency agencies in Vail Valley as the information is processed. Draft Report Phase The Projec~,Consultant will compile the information, data analysis and recommendations into a dra~ report for key officials to review. Final Report Phase. Issues addressed during the draft phase of the report will be modified in the report and the final report will be bound and presented to the appropriate officials. If necessary, at a later time, Mr. Ludwig will make a presentation to officials determined by the appropriate agencies in Vail Valley, -~ Approach to Study As part of this analysis, The Ludwig Group will look at the history of the delivery system and assess the current status with regard to the EMS delivery program. The modern rr~del for delivery of emergency medical services (EMS) has been evolving since the mid-1960s. Throughout the country, during this 30+ year evolutionary process, The Lud ig Group, LLC 8 ]uly 2003 Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3213 ~ ~. Vail Valley EMS Study systems have developed to the point that are commonly accepted standards or benchmarks that can be used to describe EMS systems and to evaluate them. These industry benchmarks originate in a variety of sources. and serve as the conceptual framework for this system analysis. All of the benchmarks in this proposal can be 1~ourrd, in various forms, in the original "75 Essential Components of an EMS System" that were identified in the federal EMS legislation of 1973, and in the new "70 EMS System Standards" used currently by the U.S. Department of Transportation (1995) to evaluate state EMS systems. In addition, these benchmarks can also be found in the standards of the Commission on Accn,ditafion of Ambulance Services (1994) and in the EMS accreditation standards developed by the Intemationa/ Association of Fire Chiefs (1995) and in the contracting guidelines developed by the American Ambulance Association. Therefore there are commonly accepted benchmarks or "best practices" as they have been laid down as a foundation for the analysis of any EMS operation, Key areas for evaluation will be as follows: Organization and Management Structure System Reguiafiion and Policy Analysis and Planning Human Resources and Staffing Quality Improverrsnt/Quality Assurance/Professional Standards _~ Public Education, Information, Resources (PIER) Medical OversightlControl/Direction Finances and Budget Communications Training and Education ApparatusNehicle Deployment Public/Customer Service Other Associated Components System redesign evaluations will be conducted based upon optimal system designs reflective of cosi benefit analysis of specific design .elements and after careful consideration of applicable legal, financial implications and industry trends. p. ~ ~ The Ludwig Group, LLC .~ 9 ]uly~A03 i nursaay, ,1uly 31, ZUU3 2:3b 1'M Gary Ludwig 636-797-3218 p.13 •; _,~ Vail Valley EMS Study Any recommendations will be established with specific goals in mind. These goals are: 1. Improve patient care. 2. ;, Improve Communications 3. l Provide consistency in patient care and performance. 4. Increase efficiency and effectiveness of the system. 5. Improve financial stability of the system by maximizing the use of resources while improving efficiency and economy. The scope of the study includes the following items: 1. Analysis of the existing EMS system in the Vait Valley with a comprehensive description of the roles of various participants. 2. Development of minimum pertormance standards which should be implenraenl@Ri in a high perfom~ance EMS system. 3. The preparation of specific recommendations toimprove and enhance the current EMS operation in the areas of efficiency, effectiveness, quality, and long-term stability. The recommendations are structured to support evolutionary improvements to the system with continuous strengthening of the system's stability.. The proposed activities prepare the system to respond effectively to changes with respect to its strengths, opportunities, weaknesses, threats. The Ludv~hg Group will carefully review and assess the current components, relationships, function, and performance of the existing EMS delivery system. This system reviewwill be based on identifying pre-established key performancelquality indicators "best practices" and comparing the actual performance of the current system against those benchmarks. System redesign evaluations will be conducted based upon optimal system designs reflective of cost benefit analysis of specific design elements and after careful consideration of applicable legal, financial implications and industry trends. The Ludwig Group shall be responsible for the professional quality, technical atQOracy, timely completion and coordination of all services furnished. The Ludwig Group's services shall be pertormed expeditiously and with generally accepted professional skill and a level of care required for the orderly progress of the scope ofwork. The Ludwig Group, l1C f0 July 2003 t~ Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 p.14 Vail V~Iley EMS Study The Ludwig Group shall furnish all material, labor, office equipment, facilities, and transportation necessary to perform properly and complete in a workmanlike, acceptable manner, the work called for in this Proposal. The Ludwig Group shall have no authority to dictate or make decisions concerning the work of the fire department in the absence of the Township's written approval. Authority to make or dictate any and all guidelines, decisions, and directives shall be the exclusive right of the Commission. The Ludwig Group shall not have any independent authority or responsibility to make any decisions on behalf of any emergency agency in the Valley. l ~~ Addi~onal Infonmafion The Ludwig Group carries $1 million of Professional Liability for errors and omission, general liability, workman's compensation, and automobile insurance. The Ludwig Group is an equal opportunity employer and does notdiscriminate agal+~stany employee or applicant for employment because of race, religion, color, national origin, age, sex, or sexual preference. ~ ~~ The Ludwig Group, LLC 11 July 2003 _,~. Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 p.15 Vai! Valley EMS Study -' . Vail Valley Gantt Chart 'r Contract Awarded ---- Kick-off Meeting On-Site Evaluation Follow-up Research Assessment and Report Wring 'r -~- --r Draft Report --- Fnal Report Month i Month 2 Month 3 -b- The Ludwig Group, LLC 12 July 2003 ~ ~. Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 p.16 l ~~ Appendix A _b. ? 'r - K~ Thursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 GARY G. LUDWiG 9525 E. VISTA DRNE HILLSBORO, MO 63050 636-7~7-3218 (Home) 636-789-5660 (Office) _ ~ CURRICULUM VITAE EDUCAT~N: 1991 National-Louis University - Master of Science Concentration: Management and Business St. Louis, Missouri i 985 Kensington Unnrersdy - Bachelor of Arts Concentration: Business Administration ,~ Glendale, California 1977 Christian Brothers College Military Institute Academic Diploma St. Louis, Missouri EMPLOYMENT; 1998 -Present Manaainsr Director -The Ludwig Group, LLC Professional consulting fine special'¢ing in EMS and fire delivery. 1994 - 2001 Chief Paramedic - St. Louis Fire Department, St Louis, Missouri. Management of the EMS Bureau; 173 personnel and 22 staff; Responsible for 1'~ Responder Program; Medical oversight of 712 firefighters Responsible for planning, directing and coordinating all EMS activfies within ~e St. Louis Fire Department; 1a Responder Program; EMS Transport, CQI, Education (Appro~omately 105,000 calls yearly) EMS Bureau Operating Budget $8.8 million • Fire Department Budget $45.7 million r 'r 1986 -1994 Deputy Chief -The City of St. Louis, M~uri Responsible for planning, daecting and coordinating all activities within the Emergency Medical Sennces. Responsibilipes include: Supervising the day-today operations and support functions of the St. Louis Emergency Medical Service system (70,000 emergency responses annually). Management of 159 efnployees comprised of supervisor- paramedics, paramedics, EMI's. dispatchers, and support personnel. Management of the EMS Communications Center and 9-1-1. . Q 1980 -1986 Paramedic Captain -The Cily of St. Louis, Missouri Command and Field Supervisor responsible for the operating of a scheduled shift of 13 ambulances, 26 paramedics, and 4 dispatch®rs. Responsibilities included: p.17 Administration of all shift functions and operations including; scheduling, emergency responses, quality assurance, and personnel management Ti~ursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 1978 -1980 Paramedic -City of St. Louis Responsble for delivery of patient care and transportation to appropriate hospital setting. 1977-1978] ~ Emerosncv Nfedical Technician -City of St Louis Responsible for delivery of patient care and trensportation to appropriate hospital setting. PROFESSIONAL LICENSES & Missouri Department of Health, Bureau of Emergency Med'~aJ Services, CERTIFICATIONS: Emeroency Medical Technician -Paramedic (EMT-P). 1978 -Present License fF: P-11946 Advanced Cardiac LiFe Suooort -American Heart Association - ~a- Fire ~cer I -Missouri Fire & Rescue Training lnstitute Firefiohter I & II -Missouri Department of Public Safety PROFESSIONAL CURRENT ACTNn'IES: 2002 Contributing Editor -Emergency Medics! Service Magazine 2000 ~ '~ Principal Member -National Fire Protection Association -EMS Technical Committee 1999 Vice-Chairman - International Association of Fire Chiefs -EMS Section 1998 Contr~uting Editor -Firehouse Magazine 1998 Advisory Board - Center for Fr~nergency Medicine of Western Pennsylvania 1998 Editorial Advisory Board - 9-1-1 Magazine 1996 Faculty -Forest Park Community College -Fire Science Program 1995 Member-Missouri Fire Chiefs Association 1995 Member -Missouri Valley Division - International Association Fire Chiefs 1994 Adjunct Faculty -Federal Emergency Management Agency; National Fire Academy; Advanced Le~ership Issues in EMS 1993 Advisory hoard Member - Emergency Medical Service, Tho Journal _ Q. of Emergency Care, Rescue, and Transportation. 1993 Adjunct Professor - The American College of Prehospital Medicine; New Orleans, LA 1 gg2 Associate Faculty -Fire and Rescue Training Institute, University of Missouri- Columbia; E~dension Division. 1988 Member -Missouri Emergency Medical Services Association. PROFESSIONAL FORMER ACTMTIES: 1990 Actin Member -Association of Public Safety Communications Officers. 1996-1999 Editorial Advisory Board -National Fire $ Rescue 1995-1998 ~r Director-at-Large - International Association of Fire Chiefs -EMS Section 1999 t Chief Medical Officer -Papal Visit 1994 Chief EMS Medical Officer -United States Summer Olympic Festival 94' 1992 -1998 Contnbuting Editor - 9-1-1 Magazine; 8i-monthly article called "EMS Reporr'. 1985 -1993 American Red Cross Bi-State Chapter; Advisory Board Member; Disaster Coordinating Counc~ 1993 EMS Incident Commander - St. Louis -Great Flood of 93' 1992 -1994 Reviewer, Journal of Emergency Medical Services (JEMS) 1995 -1998 Missouri Legislative Task Force -Wrote new M~souri EMS Act p. ~ is Thursday, July 31, 20(}32:35 PM Gary Ludwig 636-797-3218 P~ ~~ _ AWARDS and HON RS 1998 "Missouri EMS Administrator of the Year' -Awarded by the Missouri Emergency Medical Service Association _ „~ 1998 "Missouri EMS Service of the Year° -Awarded by the Missouri Emergency Medical Service Association 1996 Mayor's Award -City of St. Louis -Improved Level of Service 1995 Mayor's Award -City of St. Loins -Monetary Savings 1981 Mayor's Award of Heroism 1979 ~ Mayors Award of Heroism ~ ~ PROFESSIONAL RELATED TRAINING: 2000 Incident Command for Nighrise Operations; University of Missouri-Columbia, Fire and Rescue Training Institute 2000 Emergency Medical Service Operations and Planning for Weapons of Mass Destruction; The Tezss ABJUI Uni~rsily System, The National Emergency Response and Rescue Training Cerrter 1gg8 .Domestic Preparedness Senior Official's Workshop; United States National Domestic Preparedness Program ~' 1998 Federal Emergency Management Agency -Emergency Management Institute Integrated Emergency Management Course for Special Events 1994 Federal Emergency Management Agency -National Fire Academy; Advanced Leadership Issues in EMS -Charter Class 1990 Federal Emergency Management Agency -National Fire Academy: Fire Information Management Systems; Emmittsburg, Maryland 1989 t ~' Federal Emergency Management Agency -National Fire Academy: Management of Emergency Medical Services; Emmittsburg, Maryland 1979 St. Louis Universit~r School of Medicine: Emergency Medical Technician - Param~ic Training Program St. Loin, Missouri -Q Tf~ursday, July 31, 2003 2:35 PM Gary Ludwig 636-797-3218 ~ p.20 EDUCATIONAL AND iNSTRUCTK)NAL VIDEO TAPES 1999 "Mass Gathering Management", Pulse. May 1999 1598 ~ I/ "Fire-Medics - AED Implementatioh' Working Fire. Volume 98-01 1997 "Fire Medics - Fire/EMS Merger, Worki_ na Fire. Volume 97-10 1996 "Fire Medics -Crime Scene Management', ILVorkinst Fire. Volume 96-11 PUBLISHED BOOKS 1992 Comouters in the EMS and Fire Service, (1st edition). St. Louis, MO. Ludw~ Publ'~shing. CONTRIBUTIONS TO PUBL~HED BOOKS 1998 Contributing Author, The EMS Incident Management System. Upper Saddle Riwer. NJ, Brady Publishing, 1998 1885 Contributing Author, Prehosaital Cam Administration. St. Louis, MO, Mosby-Yearbook, Inc. 1995 PUBLISHED COLUMNS 1992 -1998 ~ 911 Magazine -EMS Column 1995 -199 ~, International Association of Fire Chiefs newsletter - On Scene Published Twice-monthly 1997 -Present firehouse Magazine -EMS Column 2002 -Present EMS Magazine -Management Column 'r' 2003 Project Matrix Today's Date: 7/31/03 A= The buck stops R= For moving forward C= Have info here responsible people need to move forward 1= Who else needs to know? No. of remaining VTC meeting days: 1st Reading for Ballot Question, 0; November Election, 6 PROJECT/ CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE 2003 BALLOT Review of community survey Done Suzanne Suzanne Pam Community endings 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 2 ballot options (mill Special meeting, VTC Pam, Greg, Judy, Matt Community go decision by 6/1/0 levy transfer & GO bond) 7/28; No-Go Suzanne, Matt decided Fire Servic Negotiate service contract with August, Sept. 8~ VTC Matt, Pam, Judy JP, John Community Consolidatio Eagle River Fire effective 1/1/04; Oct. meetings plan for consolidation election in 5/04 2004 BUDGET Council direction needed on Done VTC Pam Judy Community VCBAM/CTB future funding Preparation of budget timetable Done Judy udy Pam dheads BUSINESS Executive session discussion with Done Matt Matt Pam, Judy CBA IMPROVEMENT town attorney DISTRICT Council direction on $15,000 Done VTC Matt Business business unding request community community Council direction on business ? C Pam, Judy business license fee community Council direction on Commission ? C Pam, Judy, CSE Community on Special Events Page 1 PROJECT MATRIX 2003 PROJECT/ CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE CONFERENCE Need Council site selection Done VTC Pam, Russ, Greg Judy, Matt Community CENTER decision/direction; report-out on parking charette ppointment of Oversight Done C VTC Pam Community Committee Need Council decision/direction Recommend at VTC Oversight Committee, Russ, Greg, Matt, Community on project manager the end of phase Pam Judy 1 Review RFP for business plan Done VTC Russ Forrest Oversight and update of market analysis Committee (program verification) Council review of recommended ugust 4th VTC Russ Forrest Oversight candidate to award a contract to Committee for the business plan Design-build RFP November, 2003 VTC Oversight Committee, Judy, Matt Community Pam, Russ, Greg DONOVAN PARK Approve contract for pavilion Dane: VTC Greg Pam, Matt Community operation; set rates Discussion of soccer field C-VRD scheduling/lawn care/ irrigation subcommittee TBD 9/1/0 Complete construction Dedication, 8/30 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 6/3/03 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 Page 2 PROJECT MATRIX 2003 PROJECT/ CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE 6/17/0 RFP for architectural services VTC Staff John, Greg Community FIREWISE CODE Determine how to integrate October, 2003 VTC Russ Bill Carlson CHANGES Firewise principles into DRB regulations GRFA Proposal on reforms to GRFA September , 200 C Russ, PEC Bill Gibson Community regulations 1-70 NOISE Completion of East Vail berms, 5- Greg Greg CDOT Community MITIGATION year project 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, August LIONSHEAD Community parking agreements To be negotiated VTC Pam, Greg, Russ Dwight Community REDEVELOPMENT Final recommendation from Task August 16th VTC Pam, Russ Judy, Greg, Matt Community Force on a petition and creation o the Authority Review of public projects to Done TC 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 RI/Com Dev Staffing Prior to 1st Russ Russ, Greg, John Pam, Matt, Judy, VTC agreements meeting with PE JP MIDDLE CREEK Construction anticipated to begin Bonding approval Russ Nina VTC, DEVELOPMENT 7/01/03 in June 2003; Community PROJECT groundbreaking ceremony, 7/28 Page 3 PROJECT MATRIX 2003 PROJECT/ CURRENT STATUS/ NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE PARKING Review of 02-03 season; 7/9/03 Parking C Greg, Parking Task Community Community modifications for 03-04 Task Force MTG Force 7/15/03 Evening Explore seasonal parking on For uthorization to VTC Greg, Parking Task Community Community Park ball fields proceed, 7/15 Force, Vail Resorts Expansion of community parking Done C 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 ail 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 ROLE OF TOWN Recreation philosophy discussion, TOV-VRD TC Pam dheads, VRD Community GOVERNMENT re: Ice Dome, Skate Park, Indoor subcommittee Recreation work (Recreation, Culture, What businesses are we in? C Pam dheads Community Education, Economic Development - as part of overall roles discussion for VRD) Page 4 PROJECT MATRIX 2003 PROJECTI CURRENT STATUSI NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED TARGETED DIRECTION COMPLETION DATE 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 SIGN CODE Develop a revised sign code that September , 200 VTC Russ DRB, Business Business REVISION is easier to understand and Community community enforce TIMBER RIDGE Friendly condemnation action in Done Pam, Russ Nina, Judy, Matt Steve Jeffers VTC, District Court for acquisition Community TOWN MANAGER Applications due May 23 Done; 164 VTC Search firm JP Community SEARCH applicants Fall 2003 Candidate screening June 17 Done; 5 finalists VTC Search firm JP Community Interviews July 10-11 Done 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 up/tear-down ail Jr. Hockey fund-raising Vail Jr. Hockey Vail Jr. Hockey VTC, VRD user groups campaign Recreation philosophy discussion Done VTC Pam VRD Community VAIL MEMORIAL DRB Application 8/28/03 PEC Mtg PARK 2004 Opening Development review process, Task Force Russ dheads Community DRB Creation of 501c-3 8/28/0 VTC ask Force Matt Community Rezonin 8/28/0 Task Force Russ Community VAIL VILLAGE Need Council direction on 8/5/03 Evening VTC Greg Pam Community STREETSCAPE snowmelt Page 5 PROJECT MATRIX 2003 PROJECT! TARGETED COMPLETION DATE CURRENT STATUS/ DIRECTION NEXT REVIEW ACCOUNTABLE RESPONSIBLE CONSULTED INFORMED PEC review of Master Plan 6/9/03 PEC Preparation of phased construction schedule with input rom Water District, adjacent property owners, business community Greg Greg adjacent property owners, Water District, VCBA Community Exploration of Downtown Development Authority/TIF 6!17103 VTC WS C Russ Pam, Russ, Matt, Judy Community VILLAGE REDEVELOPMENT PROJECTS Loading and delivery Greg Greg Pam, Russ, Dwight, Matt affected properties, Community VR integrating off-site streetscape into their plans Greg and George Greg and George Pam, Russ, Judy, Matt Page 6 PROJECT MATRIX 2003