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HomeMy WebLinkAbout2004-03-16 Support Documentation Town Council Evening SessionEVENING MEETING 6:00 O'.IVI. TUESDAV, MARCFI 'l 6, 2004 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what tune Council will consider an item. 1 • ITEM/TOPIC: Citizen Participation (5 min.) Z. Rod Slifer ITEAA/TOPIC: Review draft "Vail Conference Center Business Plan" (60 min.) ACTION REQUESTED OF COUNCIL: The purpose of this meeting is to introduce the draft Vail Conference Center Business Plan to the Vail Town Council and answer questions on the plan. No action is requested at this time. BACKGROUND RATIONALE: The first phase of the Vail Conference Center project is to complete a market analysis and a business plan for the facility. HVS Convention, Sports and Entertainment Facilities was selected by the Vail Town Council and the Conference Center Oversight Committee to prepare this study. The major goals of this study where to: 1. An accurate analysis of the market demand for a conference facility in Vail. 2. A comprehensive evaluation of the fiscal impacts of a conference facility in Vail. 3. The development of specific recommendations on the programmatic elements for the conference center that will meet the market demand for a conference facility in the future. . 4. Development of a specific business plan for the Vail conference facility that will provide the most appropriate balance of generating the maximum economic benefit for the community while providing a financially sound plan for the operation of the conference facility. After the presentation on March 16th, the Conference Center Advisory Committee plans to meet with several investment bankers and develop a final recommendation for structuring the debt and creating a final cash flow model for the project. In addition, the Committee is receiving additional information on the cost associated with adding parking to the existing Lionshead Parking Structure. A preliminary cash flow model is included in the report but may change as additional information is received in the next 2-3 week. On April 6th, 2004 the Conference Committee plans to return to the Vail Town Council with a final recommendation on next steps for moving forward with the Conference Center. 3. Russ Forrest ITEM/TOPIC: Resolution No. 11, Series of Malcolm Murray 2004 approving the Lionshead Public Facilities Development Plan (20 min.) ACTION REQUESTED OF COUNCIL: Approve, Approve with modification, or deny the Lionshead Public Facilities Development Plan. BACKGROUND The Vail Reinvestment Authority is requesting that the Town Council approve the Lionshead Public Facilities Development Plan based on the findings in section VII of the attached memorandum. The purpose of this plan is to facilitate the redevelopment of Lionshead by removing or curing covenants that may impede redevelopment and to generate revenue to pay for public improvements with tax increment financing. Staff has also developed an option to postpone the initiation of tax increment financing and not start a 25 year clock for bond financing. Therefore, two versions of the plan are provided in this proposal. Option 1 is to include the ability to implement tax increment financing and eliminate covenants that impede redevelopment at the owners consent and option 2 excludes TIF financing at this time. Staff is recommending that the Vail Town Council approve the Lionshead Public Facilities Development Plan using one of the two options mentioned in Section III of this memorandum. On February 23, 2004, the Planning and Environmental Commission unanimously found that the Lionshead Public Facilities Development Plan conforms to the Vail Comprehensive Plan. 4. Malcolm Murray ITEM/TOPIC: Request to approve of Resolution No. 12, Series of Russ Forrest 2004 approving the P-3 & J Reinvestment Plan (10' min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny the P3&J Reinvestment Plan. BACKGROUND The Vail Reinvestment Authority is requesting that the Vail Town Council approve the P-3 & J Reinvestment Plan based on the findings in section VII of the attached memorandum. The purpose of this plan is remove or cure covenants that may impede redevelopment of this property. Staff is recommending that the Vail Town Council approve the P-3& J Reinvestment. On February 23, 2004 the Planning and Environmental Commission unanimously found that the P-3 & J Reinvestment Plan conforms to the Vail Comprehensive Plan. 5. Russ Forrest ITEM/TOPIC: Request to approve of Resolution No. 13, Series of 2004 authorizing the Town Manger to remove certain protective covenants within Forest Court Subdivision. (5 min.) ACTION 12EQUESTE® OF COUNCIL: Approve or deny Resolution No. 13, Series of 2004 BACKC~ROUN®: Vail Resorts has received approval for a new subdivision called Forest Court Subdivision located on Forest Road. Certain protective covenants exist on the site that prevents development of the property. These covenants can be modified by the mutual consent of the Town of Vail and Vail Resorts Inc. Vail Resorts has already begun to remove ski operation facilities on the site and would like to begin installation of infrastructure for the new subdivision within the year. This area is not part of the Lionshead Urban Renewal Area. 6. Russ Forrest ITEI~I/TOPIC: Request to approve of Resolution 14, Series of 2004 that would authorize the Town Manger to modify certain protective covenants on 601 Forest Road on a parcel of land owned by the Town of Vail (30 min.) ACTION FtEQUESTE® OF COUiVCIL: Approve or deny Resolution 14, Series of 2004 BACKC~ROUI~® Vail Resorts conveyed a portion of 601 Forest Road to the Town of Vail on January 20, 2000. In this conveyance Vail Resorts modified certain protective covenant on the land. Resolution 14, Series of 2004 would authorize the Town Manager to reestablish certain protective covenants that would keep the property as wetlands and allow the Town to take reasonable care for the site. It would also allow certain types of trails that do not involve structures or board walks to be created on the site. This land is zoned Natural Area Preservation and is already dedicated open space. These changes in the covenants have been requested by adjacent property owners. Given.the zoning on the land, the existence of wetlands on the site, and the open space designation of the property, staff recommends approval of Resolution 14, Series of 2004. 7. Pam Brandmeyer ITEI~I/TOPIC: Fly Vail Summer/Continental Airlines Pledge Kent Myers (5 min.) STAFF RECOIViIIAEIV®ATIOIV: Make a motion to continue the Council's "pledge" by a letter of intent the $10,000 at this time, and in September, should a cash subsidy be required from the town, at that time proceed with a supplemental appropriation, thus equalizing the Town of Vail's commitment and risk to the other various funding stakeholders. 8. Dwight Henninger ITEItfl/TOPIC: Update on I-70 Mitigation Measures (15 min.) Stan Zemler Greg Hall BACKGROUND: On Dec: 2, 2003, the Vail Town Council voted 5-1 to table to March 16, 2004 second reading of an ordinance banning the use of engine brakes along I-70 through Vail. The legislation was originally introduced to call attention to the issue of I-70 noise and to signify the Town Council's intent to take aggressive and proactive measures to reduce highway noise, which is impacting Vail's quality of life and its economic vitality. In lieu of approving an immediate ban on engine brakes, the Town Council agreed to pursue astaff-•recommended collaborative approach involving the Colorado Motor Carriers Association, the Colorado Department of Transportation, the Town of Vail and other agencies as a first step. A Memorandum of Understanding (MOU) between the Town of Vail and the Colorado Motor Carriers Association was subsequently signed on Dec. 3, 2003 which provides a framework for the comprehensive actions. The measures include ayear-long education and traffic enforcement program, noise and speed monitoring, and pursuit of a noise mitigation demonstration project. The purpose of tonight's presentation is to provide the Town Council with an update on the activities. REQUESTED ACTION OF THE TOIMN COUNCIL: Review the actions to date, provide comment, and authorize the Town Manager to approve a contract of up to $90,000 with Hankard Environmental of Ft. Collins for noise monitoring and development of a noise mitigation demonstration project. Funding for this project is contained in the 2004 capital projects budget. STAFF RECOMMENDATION: 1) Approve authorization of a noise monitoring and mitigation contract of up to $90,000 with Hankard Environmental; 2) Authorize the town manager to continue with the alternative actions outlined in the Memorandum of Understanding between the TOV and the Colorado Motor Carriers Association; 3) Schedule date for next quarterly review. 9. Parn Brandmeyer ITEM/TOPIC: New Appointments (20 min.) Building and Fire Codes Appeals Board (B&FCA) 1 board vacancy fora 2 year term and 1 alternate vacancy o Thomas DuBois o Rich Seth Planning and Environmental Commission (PEC) 5 vacancies to be filled, 4 positions to be filled are for 2-year terms and **one position will be fora 1-year term o Anne Fehlner-Gunion o Joe Hanlon o Bill Jewitt 4 o Roland (Rollie) Kjesbo © George Lamb o Steve Lindstrom o David D. Viele Design Review Board (DRB) 3 vacancies to be filled, each are for 2 year terms o Scott Proper o Margaret Garvey Rogers Art in Public Places (AIPP) 3 vacancies to be filled, each are for 3 year terms o Millie Aldrich . o Barbie Christopher o Pamela Hopkins o Tim Moffet o William Rey o Dan Telleen 10. Leslie Pickling ITEII~/TOPIC: Art in Public Places (AIPP) Year End Review (15 min.) 11. Larry Pardee ITI=flfl/TOPIC: Slurry Seal Street Improvements Project (5 min.) ACTION REQUESTE® OF COl1NCIL: Approve and Award contract. BACICGROUIV® 12i4TIOIVALE: Slurry Seal is part of the Town of Vail's on going preventive maintenance program to our asphalt streets. Slurry Seal helps to extend the life of asphalt pavement. Also provides a new all- weather and skid resistance surface to our streets. All public streets in Intermountain and Matterhorn Districts will be Slurry Sealed. Intermountain Slurry Seal Inc.bid is within budget. Staff recommends awarding the project to Intermountain Slurry Seal Inc. The Project is scheduled to begin sometime in mid June 2004 and completed before the 4`h of July. Bids: Contractor Total Bid Intermountain Slurry Seal Inc. (Utah) $ 72,000.00 Quality Paving (Denver) $ 79,352.75 Intermountain Pavement Preservation (Denver $118,831.25 TOV 2004 Capital Street Maintenance Bud et $ 80,000.00 IaECOAAAAEN®ATIOIV: The Public Works Department recommends awarding the project to Intermountain Slurry Seal Inc. 12. Matt Mire ITEM/TOPIC: First Reading of Ordinance 8, Series 2004, an Dwight Henninger Ordinance Amending Title 6, Chapter 3, "GENERAL OFFENSES," Buck Allen of The Municipal Code of The Town of Vail; Providing for the Addition of "Article I. Violation of Restraining Order"; and setting forth details in regard thereto (10 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with amendments or deny Ordinance No. 8, Series 2004, on first reading. BACKGROUND RATIONALE: Currently, there js no provision in the town's criminal code which addresses a violation of a restraining order. Adding this violation to the town's police regulations will allow both the police department and the municipal court to more effectively enforce the town code and deal with offenders who violate lawful orders of this type. STAFF RECOMMENDATION: Approve, approve with amendments or deny Ordinance No. 8, Series 2004, on first reading 13. Matt Mire ITEMITOPIC:: First Reading of Ordinance 9, Series Dwighl: Henninger 2004, an Ordinance Amending Title 6, Chapter 3, Article A, of The Municipal code of The Town of Vail; Providing for Certain Amendments to the Town of Vail Police Regulations Relating to Offenses by or Against Public Officers and Government; and Setting Forth Details in Regard thereto (10 min.) ACTION RE(~UESTED OF COUNCIL: Approve, approve with amendments or deny Ordinance No. 9, Series 2004, on first reading. BACKGROUND RATIONALE: Currently, there is no provision in the town's criminal code which addresses a violation of bail bond conditions. Adding this violation to the town's police regulations will allow both the police department and the municipal court to more effectively enforce the town code and deal with offenders who fail to comply with conditions imposed upon them by the municipal court. STAFF RECOMMENDATION: Approve, approve with amendments or deny Ordinance No. 9, Series 2004, on first reading. 14. Stan Zemler ITEM/TOPIC: Second Reading of Ordinance No. 28, Series of D~roight Henninger 2003, an Ordinance Prohibiting the Use of Dynamic Braking Greg Hall Devices on a Certain Section of Interstate Highway 70 within the Town of Vail and Setting Forth Details in Regard Thereto. (5 min.) 13AC ~f6s' ROU N D: On Dec. 2, 2003, when the Vail Town Council voted 5-1 to table second reading of this ordinance to March 16, 2004, it did so with the understanding the ordinance would be deferred so long as significant progress is achieved in reducing highway noise through other means, such as the Memorandum of Understanding (MOU) between the Town of Vail and the Colorado Motor Carriers Association signed Dec. 3, 2003. However, to meet legal notification requirements, second reading of Ord. No. 28, Series of 2003, must come before the Town Council on this, its scheduled date for disposition. ACTION REQUESTED OF COUNCIL: Bring closure to this ordinance in one of the following manners: 1) table to a future date; 2) vote on a motion to support or reject; or 3) allow ordinance to fail due to lack of a motion. STAFF RECOMMENDATION: The I-70 update presented earlier in the evening will demonstrate significant progress in addressing the Town Council's objective, thus, making it unnecessary to follow through with implementation of the legislation at this time. 15. Matt Mire ITEM/TOPIC: Second Reading of Ordinance No. 4, Amending Title 6 of the Vail Town Code; exempting Areas of Stephens Park from Town of Vail Requirements Regarding Pet Animal Owners' Immediate and Physical Control of Dogs; and Setting forth Details in Regard thereto (5 min.) ACTI®N REQUESTED OF COUNCIL: Approve, approve with amendments, or deny Ordinance No. 4, Series 2004 on second reading. BAC&(GROUND RATIONALE: In 2003 the Council designated areas of Bighorn Park to allow dogs to be unleashed. At that time Council agreed to allow cone-year trial period for unleashed dogs at Stephens Park and that trial period has ended. Accordingly, Council requested an Ordinance for consideration to make Stephens Park an official dog park pursuant to the Town Code. i STAFF RECOMMENDATION: Approve, approve with amendments or deny Ordinance No. 4, Series 2004, on second reading. 16. Matt Mire ITEfi~/T'OPIC: Second Reading of Ordinance No. 5, Series 2004, an Ordinance Amending Title 4, Chapter 3, of the Municpal Code of the Town of Vail; Providing for Certain Amendments to the Town of Vail Sales Tax Code: and, Setting Forth Details in Regard thereto (5 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with amendments, or deny Ordinance No. 5, Series 2004. BACKGROUND RATIONALE: The jeopardy and assessment provision as proposed by this ordinance is consistent with state law and with other municipal tax codes, including our own ski lift tax. The amendment was requested by the Town Finance Department and will provide the Town of Vail Finance Director with more latitude in implementing and enforcing the Town's sales tax code in situations where a delay would jeopardize collection of the taxes due. STAFF RECOMMENDATION: . Approve, approve with amendments or deny Ordinance No. 5, Series 2004, on second reading. 17. Stan Zemler tTEMITOPIC: Town Manager's Report (10 min.) Adjournment (9:55 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, APRIL 6, 2004, IN THE TOV COUNCIL CHAMBERS. THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL 13EGIN AT 6 P.M. ON TUESDAY, APRIL 6, 2004, IN TOV COUNCIL CHAMBERS Sign language interpretation available upon request with 24-hour notification. Please call 479-2106 voice or 479-2356 TDD for information. 8 MEMOR~4NDUM TO: ~ Vail Town Council FROM: Conference Center Advisory Committee DATE: March 16, 2004 SUBJECT: Update and Overview of the Vail Conference Center Business Plan Planner: Russell Forrest ~. PURPOSE The Vail Conference Center Advisory Committee would like to review the draft Vail Conference Center Business Plan with the Vail Town Council. HVS International will make a presentation to the Town Council on March 16th and be available for any questions from the Town Council or the community at that meeting. The Final Draft is being completed and will be distributed to the Town Council and be available to the community on March ~2, 2004. The Committee does plan to further refine the Financing Analysis in the plan after the March 16th meeting based on additional input anticipated from investment bankers and the Public Works Department on potential costs associated with modifying the Lionshead Parking Structure. 2. NEXT STEPS The Committee's proposed next step after receiving input on Final Draft of the Vail Conference Center Business Plan from the Town Council is to: o Direct HVS to make final changes to the Plan. Meet with investment bankers on March 30 to evaluate options for financing the center. Receive input on costs associated with modifying the Lionshead parking structure (March 30th) o Finalize the Committee's recommendation to the Vail Town Council o Present the Committee's recommendation to the Town Council with suggested next steps on April 6, 2004. F:IUserslcdevlCOUNCILIIVIEIViOS1041conferencecenter031604.doc HVS Scope Review TOWN OF VAIL/HVS INTERNATIONAL Markef Analysis and Business Plan AGREEMENT THIS AGREEMENT for services is made and entered into on this day of August , 2003, by and between the Town of Vail, a Colorado municipal corporation (the Town), and HVS International Corporation ("The Consultant"). Vi/ITI~ESSETH WHEREAS, In November, 2002 the voters of the Town of Vail approved a dedicated revenue source to facilitate the development of a world class conference center; WHERAS, a 1.2-acre site adjacent to the 1,100 space Lionshead parking structure has been designated as the conference center site, located at 395 South Frontage Rd West in the Town of Vail; WHERAS, the Town of Vail envisions aworld-class, sustainably designed conference center with a grand ballroom, associated breakout rooms, commercial kitchen facilities, and office spaces; WHERAS, the Town envisions four phases for the development of the Conference Center. The initial phase will involve the creation of a market demand analysis and a business plan for the conference center. The second phase shall include creating a design that meets the programmatic and financial goals of the business plan. The third phase of the work will include construction of the conference center. The fourth and final phase includes the operation and maintenance of the facility; and WHERAS, this agreement provides services to the Town of Vail for the first phase of this project to complete a market analysis and business plan for the conference facility. This is a critical first step in determining the economic feasibility of conference facility in the Town of Vail. This work will also identify physical site issues that will need to be considered in greater detail during the design phase of this project. NOW, THEREFORE, the parties mutually agree as follows: SITE DESCRIPTIOINS The sites and uses that will be addressed in this agreement include the Vai! Charter Bus Lot and the Vail Lionshead Parking structure located at 395 South Frontage Rd West, Vail, CO 81657. 2. PROJECT OBJECTIVES: The following objectives shall be achieved in completing the scope of services outlined in Section three (3) below: 1. An accurate analysis of the market demand for a conference facility in Vail. 2. A comprehensive evaluation of the fiscal impacts of a conference facility in Vail. :3. The development of specific recommendations on the programmatic elements for the conference center that will meet the market demand for a conference facility in the future. ~4. Development of a specific business plan for the Vail conference facility that will provide the most appropriate balance of generating the maximum economic benefit for the community while providing a financially sound plan for the operation of the conference facility. 3. SCOPE OF SERVICES This scope of service to be provided by the Consultant includes the following four phases which are: (Phase 1: Market Study (Phase 2: Facility Recommendations phase 3: Economic and Fiscal Impact (Phase 4: Business Plan The Town will approve each completed phase to ensure that there is successful completion of all tasks contained in this scope of service prior to the Consultant initiating i:he next phase. 3.1 Phase 1 Market Study The Consultant will conduct a detailed independent market analysis that culminates in 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. Section 2-Market Overview and Section 4-Lodging Analysis provide the primary elements of the market study. A. Phase I-A Data Gathering and Fieldwork The Consultant will meet with the Town and other appropriate representatives todiscuss the study in more detail and to formulate a schedule for performing the fieldwork. The 2 Consultant will gather any information from the Town that may assist it in performing this agreement. The Consultant will also perform the following tasks: l . Conduct 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; Section 7-8 Site Considerations and the work LMN did to develop the concept plans included at the end of Section 7. 3. Investigate the availability of lodging facilities to support the conference center; Section 4-1 Room Availability 4. Determine the role that the public sector intends the facility to play in the market; The Peer Market Analysis Section 5-3 Description of Peer Resort Conference Centers provides a look at the role that facilities in peer markets play. Section 8 generally describes the demand the facility is designed to attract. Section 10-1 provides a description of the economic impact role the facility would 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; HVS conducted several interviews with local officials, sources of demand, and existing hotel facility managers. Section 4-3 Occupancy and Average Daily Rate details the historical performance of the hotel market and its seasonal patterns. 6. Use market research to estimate the demand for food, beverage, banquet, and meeting facilities; Section 8-8 describes the demand estimates forbanquets at the recommended facility. 7. Evaluate types of events currently occurring in the market area in existing venues grid any plans for expansions, upgrades, or new facilities; Section 2-7 Existing hotel conference centers describes the existing hotels with event space and the types of events they host. 8. Interview local Chamber of Commerce representatives, economic development agencies not for profits, and other related organizations, along with an investigation of the market area to reveal patterns reflecting growth, stability or decline. HVS interviewed several local organizations including the Vail Valley Chamber and Tourism Bureau, Vail Valley Foundation, and others and incorporated the information gathered into Section 2. An example of this is Section 2-18 Lost Business analysis of information provided by VVCTB. Section 2 details the market and reveals trends in employment Section 2-14. Research expense factors relating to local conditions such as labor, energy rates, assessed values and taxes. Section 9-6 shows HVS' expense assumptions, which are the result of information collected from peer facilities and interviews with existing facility managers familiar with cost structures in the market. 10. Evaluate other mountain resort conference facilities such as Keystone and Estes Park. Section 5-3 Description of Peer Resort Conference Centers details peermountain resort conference centers. B. Phase 1-B Market Overview The Consultant will assess key market variables and economic data, culminating in an analysis of the following: ^ Local area conditions ^ Demographic and economic characteristics ^ Work force characteristics ^ Projected economic growth ^ Business climate ^ Corporate presence ^ Colleges and universities ^ Arts, culture, and entertainment ^ Hotel supply and seasonal availability (including number of rooms by type and meeting space) ^ Leisure and tourism ^ Visitor industry-related taxes ^ Proposed development initiatives ^ Transportation/air access and cost Section 2 Market Overview includes an assessment of these key market variables. C. Phase I-C: Comparable and Competitive Facility Analysis The Consultant will compile data on mountain resort conference facilities of comparable size and in markets similar to the proposed facility. The Consultant shall also analyze the number, size and quality of potentially competitive conference facilities. 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 ^ Other factors that may determine the level of demand. The Consultant will identify conference centers that have performed below expectations and will look at the specific reasons they failed and how such failures can be avoided. 4 The Consultant will also identify conference centers that break even or better on an operational basis and how those practices may be emulated. The consultant shall provide the Town within 5 days of the execution of this agreement a list of recommended comparable facilities for the Town's approval. HVS assessed peer resort conference centers in Section 5, including detailed information on Telluride's facility that has performed below expectations (5-10) and Snowmass that is suffering from reduced event demand (5-9). D. Phase I-D Industry Trends Analysis The Consultant shall evaluate both national and resort trends for national conferences and project how these trends will affect a conference facility in Vail in the future. This trends analysis completed by the Consultant shall include information on national, regional and state markets and cover relevant indices and topics including: Historical growth in the supply of, and demand for, meeting space nationally and within resort communities Planned additions to the supply of meeting facilities Planned growth in conference facilities in resort communities and an evaluation of the current performance of resort community conference facilities Projected growth in the demand for meeting facilities National, regional and state market trends Section 3 details industry trends and 3-23 assesses the implications of these trends on event demand potential in Vail. E. Phase I-E-Surveys The Consultants shall identify an appropriate sample of event planners that reflects primary segments of potential demand. The Consultant's goal will be to collect a total of 50 to 75 completed survey responses. The survey measures event planners interest in the proposed facility and the market generally. In addition, the survey will request information on the characteristics of the events that the respondents plan. The Consultant shall use the following methods to collect accurate and comprehensive feedback from event planners: Infernet-Based Survey Form-The Consultant shall use an Internet-based survey form the Consultant tailors specifically to this analysis to enable a large sample of event planners to express their views. The Consultant shall follow-up with event planners that do not respond to the survey with phone calls and faxes. This follow-up enables the Consultant to increase the response rate and eliminate contacts that are no longer valid and replace them with other event planners. The Consultant shall target the goal of achieving between 50 and 75 completed survey responses. Telephone Interviews- The Consultant shall select a subset of the survey sample to contact directly to attain additional detail on their views of the market. These interviews will supplement the information collected via survey forms by enabling the Consultant to engage event planners in conversation regarding their impressions of the market and the proposed 5 facility. The Consultant shall interview at least 25 meeting planners in addition to those that responded to the written survey. The survey shall cover a variety of data points that assists the Consultant to measure the dennand 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 • Past event locations Interest /Impressions of the Market The Consultant shall 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 be used to determine the level of meeting planner interest in the market area and a proposed conference center in Vail. The Consultant shall survey a selection of meeting planners to draw conclusions about: • Overall level of interest in utilizing the facility ^ Seasonal demand for a conference facility ^ Relative attractiveness of peer and competing markets • Specific objections to utilizing a conference facility in Vail ^ Market attractiveness in respect to key site selection criteria The Consultant shall analyze the responses and present the data in easy to understand tables and charts. HVS summarizes key findings from the event plannersurveys including facility requirements (6-5), ratings of destination characteristics (6-6), relative attractiveness of peer resort markets (6-8), and expected frequency of bringing events to Vail (6-10). The Consultant shall independently review the availability of lodging units in Vail to ensure roorn availability (adequate bed base) for a new conference facility. The Consultant shall conduct a survey of Vail hotel operators to determine the availability of room blocks by season and time of week. This surrey will take place concurrently with the User Surveys described above. HVS reviewed the survey data on group room block availability collected by the VVCTB and determined that contacting the lodging property managers again to ask them the same questions was unnecessary, and in consultation with VVCBT and Town of Vail staff utilized the ~sxisting survey data. The survey information is summarized in Section 4-2. F. Phase 1-F Focus Groups 6 The Consultant shall conduct a minimum of two focus groups with event planners as part of its analysis. A third focus group may be conducted if so authorized by the Town. The first focus group will be conducted before finalizing any facility recommendations and design. A third Denver focus group may be added by the Town with written direction to the consultant. For the each focus group, the Consultant shall recruit meeting planners from the following areas with the goal of attracting eight (8) to twelve (12) participants that may include: Denver Area Corporate Meeting Planners State Association Meeting Planners National Meeting Planners The Consultant shall use its contacts with the American Society of Association Executives, its membership in Meeting Planners International, and the input from local hotel sales managers to identify and recruit meeting planners that may be willing to participate in the focus group sessions. The Consultant will engage StragegyOne as a subconsultant, to assist the Consultant with the preparation for and conduct of the focus groups. In advance of each focus group, the Consultant shall structure a detailed question and answer session that covers a range of topics including: Introduction to the events and activities of the meeting planners The facility needs for potential events in Vail The needs of meeting attendees The strengths and weaknesses of Vail as an event destination Level of interest in locating meetings in Vail Comments on preliminary physical concept plans Opportunities for improving Vail as an event destination The proceedings shall be video taped and transcribed. In its report, the consulting team shall provide a summary of the focus group proceedings and discuss the implications of the meeting planner input on demand projections and facility recommendations. The Consultant shall also assist in the development of a small advisory group of event planners to provide advice on the project throughout this scope of service. This group would need to be available to meet or participate in conference calls on an ongoing basis. Assistance from the Town's Conference CenterAdvisory Committee and various hospitality community representatives in identifying participants will be necessary. Members of this focus group will be volunteering their time, so involvement of people who have an interest in the success of the facility will be critical. The Consultant will select and develop an appropriate means of communicating with this advisory group so that they can provide input on market analysis, program, and business plan. HVS conducted three focus group sessions, recorded them, and summarized the results and implications for event demand for a new facility in Vail, as detailed in Section 6-23. 7 We discussed the need to get assistance from the Town of Vail in assembling this group if the Committee determined that it wanted to open up the review process to additional participants. Typically, this type of event planner group is assembled once a general facility program and financing plan is in place to help review more detailed facility design and provide comment on operational issues. Given the requirements on Town staff and the Committee to develop the business plan, it was determined that the development of this additional advisory group would be more effective in subsequent stages of project development. The Consultant also agrees to host a focus group meeting during an annually scheduled event planner meeting planned for October 2003 at the Ritz Carlton. The Consultant will plan and facilitate a focus group meeting during this event to verify the market demand and facility program needs. The Town, Conference Center Advisory Committee, and the general hospitality community will assist in orchestrating this focus group by providing some or all of the following room upgrades or other incentives to participate and a conference space to conduct the focus group. HV.> organized and conducted this focus group with MPI Institute attendees, and summarized the results beginning on 6-28. G. Phase I-G Demand Projections Based upon the market research, comparable facilities analysis, and interview data; the Consultant shall 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 twenty (20) years of operation for the following types of events: ^ Conferences ^ Conventions & Tradeshows ^ Public Shows ^ Concerts and Entertainment ^ Meetings ^ Banquets ^ Others The demand profile and data from comparable facilities serve as the primary inputs into the financial model. The description of financial projections will include a detailed line-by- line account of all revenue sources and expenses. HVS' demand estimates are detailed on 8-3 and the following pages provide detail on each event category and room night estimates. 3.2 Phase II: Facility Recommendations The next tasks the Consultant shall undertake involves site analysis and facility recommendations based on the detailed market research conducted in Phase I that will provide an understanding of the appropriate current market niche forthe conference center. LMN will be involved in the building program plan. .4. Phase II-A: Facility Program Recommendations Based on the findings in Phase I, the Consultant shall develop a facility program recommendation. The proposed program will specify the square footage of the ballroom space, breakout meeting rooms, pre-function areas and service areas. The study will also identify physical issues and limitations of the site that need to be addressed in the design of the project. 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. HVS' facility program recommendations appear in Section 7-4 and are followed by a discussion of the reasoning behind the recommendations. The Consultant does not assume at the outset of the engagement that the proposed conference center is a feasible project. The Consultant shall also consider alternative uses of the site that may be compared to the proposed conference center development with respect to the potential to generate positive economic impact. The Consultant shall review prior studies and other tourism studies to develop a general understanding of the local leisure and business tourism market. Suggestions for alterative land uses shall be based on the review of these prior studies as well as original research conducted for the conference center analysis. This analysis shall also consider alternative uses of the conference facility if it would fail in the future. We have not wriften anything in the report on alternative uses of the conference facility should it fail in the future. There are numerous options to consider should the conference center prove ineffective, and most of these options involve changing the management and/or marketing structures for the facility rather than reorienting it for an alternative use. Possible alternative uses include simply refocusing on local and civic events as has been done with the Telluride Conference Center. Another option would be a more involved retrofit foruse as a performing arts center, which has occurred with several auditorium facilities throughout the country. If the Committee prefers fo have specific language in the report That discusses possible reuses for the facility HVS can add this to the report. For the sake of brevity in an increasingly voluminous document, it may be preferable to simply acknowledge that reorientation of the facility for other uses may be one option should the facility fail to the extent that it has no value as a conference center. In the end, it may be more cost effective forthe Town to simply shut down the facility undersuch circumstances until another operator can be identified that is capable of operating the facility more successfully and guaranteeing a cap on any operating deficit. B. Step II-B: Building Program Plan The Consultants will propose a building program plan that will include a description of the required floor area and adjacency for each of the following elements: Gross floor area (square footage) of the entire facility Quantity and location of prefunction/lobby space Number, size and location of breakout/meeting rooms 9 ^ 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 ^ Others as appropriate The Consultant shall clearly state their best professional recommendation on the floor area needs based on the market demand for a Vail conference facility. 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, loading and delivery, 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. The Consultant will work with a local cost estimator of the Town's choice to develop costs estimates for the project. LMN developed a detailed conceptual plan for the facility that appears at the end of Section 7 and ARC used this plan as the basis for construction cost estimates that are detailed in Section 11-11. 3.3 Phase III: Fiscal and Economic Impacts Impact on Existing Hotel Properties The objective of the fiscal and economic Impact analysis will be to measure the net new impact of the proposed conference center on the Town of Vail. The Consultant will consider the positive and negative impacts on business tourism spending in Vail and specifically consider the potential competition with existing hotels in the Vail market. This assessment will include estimates of the amount of new or induced business versus the amount of existing business captured by the proposed conference center. HVS addresses this issue in the report by identifying the number of room nights that would be transferdemand ratherthan netnew(orinduced) demand to the communityin Section 8- 12 and discussing how existing properties would react to the loss of certain types of group room night demand in Section 8-13. As stated in the report, the net impact to existing properties is positive given that the conference center has no lodging rooms and therefore will generate considerably more benefit for existing properties in increased room nights in 10 the market than would be lost in any event activity that may shift from the event spaces of lodging properties to the conference center. A. Phase Ilt-A: Spending Assumptions ~ iViethoclology Based on the analysis of local markets, the Consultant shall develop assumptions regarding the amounts of spending that will be drawn from outside the area. The analysis will determine net new spending impacts that will account for transfer spending within the community as new spending impact. HVS' estimates of new direct spending are described in Section 10-9. B. Phase III-~ Spending Estimates The Consultant will use the demand and attendance projections by type of event (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. The Consultant 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. The Consultant shall utilize local spending survey information to assist in this analysis. The Consultant shall estimate three types of impacts in the analysis: Direct impacts including 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. This analysis shall also include an estimation ofnetnew room nights and estimated yields for additional room nights. The consultant shall evaluate whethera change should be anticipated in average daily rates forconference hotel business. The analysis shall identify any displaced business from existing hotels and any negative fiscal impacts for existing hotel properties Negative impacts on existing hotel properties are described in Section 8-13. Since the conference center is projected to generate a significant increase in the group room nights in the market without an attached hotel to capture many of these room nights, the conference center would be a net positive forthe hotels in the market. The positive impact on room rates is shown in Section 11-9. Indirect impacts include 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. 11 The Consultant 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. The Consultant shall provide a summary to the Town of all assumptions and variables used for this model prior to submitted a final document to the Town. The results of the IMPLAN economic impact model are shown in 10-13. C. Phase III-C: Fiscal Impacts The Consultant will calculate the new net direct spending associated with the project, 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 Town's economy. The Consultant will show total estimated economic impacts expected to result from the project. The Consultant shall also evaluate any negative fiscal impacts to existing hotel properties and/or displacement of spending from existing properties to the new conference facility. The Consultant 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 (accounting for displaced business/spending) expected in spending, room nights, and employment in the local economy. The tax revenue estimates are shown in Section 10-16. 3.4 Phase IV: Business Plan The financing plan phase of this study will incorporate all findings of 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. The recommendations contained in the business plan will be the product of the 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. 12 A. Phase IV-A: Analysis Of Financial Operations The Consultant shall project operating revenues and expenses of the convention center for a twenty (20) year period. This analysis will identify the key variables that determine the income and expense of a convention facility. Local cost and revenue information will be utilized to develop this model. The Consultant will review the assumptions and variable with the Town prior to providing the business plan to the Town. 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. The Consultant will develop an anticipated event calendar and review it with the Town prior to running this model. This model produces estimates of revenue 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. The Consultant will evaluate local staffing requirements and costs in Vail in developing staffing recommendations. The demand projections segment events by type and season and HVS has analyzed the capability of the facility to accommodate the number of events projected for the busiest season (summer). HVS has developed a detailed operating budget forthe facility that shows line byline revenues and expenses, which is included in Section 9-7. 13 B. Step IV-B: Cost Estimating The consultant will coordinate with the Town's costs consultant to provide project costs estimates. ARC's cost estimates are shown in Section 11-11. C. Step IV-C: Projections of Revenues 8~ Expenses The Consultant will enter the estimated number of events and average attendance by type of event into the operating model. The Consultant will then estimate the revenue and expenses annually over the projection period. The description of financial projections will include a detailed line-by-line account of all revenue sources and expenses. Indirect expenses to the Town of Vail shall also be evaluated and identified in this analysis such as transit and security costs. The estimate of Town services in the model accounts for indirect Town expenses related to the operation of the conference center, and estimated $213, 200 in a stabilized year of demand in 2003 dollars, with the assumptions shown in Section 9-6. D. Step IV-D: Operating Plan The Consultant shall recommend an approach to operating the conference facility that 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. To develop this plan, the Consultant will present alternatives to Town staff and policy makers and seek policy decisions and approvals on the approach to the financing plans. The Consultant will also seek input from the Town's financing advisors, investment bankers, the convention and tourism bureau and appropriate legal counsel. Ownership arrangements must considerthe 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 and or private entities should all be considered in the context of the financing plan. Other considerations that shall be incorporated into the Consultants recommendations on operation include: • Ownership and financing arrangements for the facility. • Food and beverage operations for the facility. Booking policies should address the types of events that are given priority in the facility. If the Town's objectives are to stimulate spending impacts and to support the local hotel industry, then policies should be established that 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. 14 The approach to sales and marketing shall 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. The Consultant 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 Town and local hoteliers. This commitment shall 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. For the purposes of this operating plan, the Consultant shall outline some general recommended terms for room block commitment agreements. o Specific approaches to funding operational deficit for the conference facility. Other financial implications if the facility fails financially. o Detailed capital replacement budget. Town of Vail staff has directed HVS to identify various potential management and operating structures and discuss their pros and cons. Because HVS is recommending that the Town issue requests for proposals for the management and marketing of the facility, it is premature forHVS to recommend any specific arrangements oroperators. The next version of the report will include an expanded discussion of various options and their inherent strengths and weaknesses in response to a request formore guidance on this issue. Section 9-19 includes a summary of these issues and the pros and cons of public and private management structures. In regard to a booking policy, HVS has recommended that the Town not restrict the conference center from booking any events deemed by facility management, subject to review of the Town or a designated oversight committee that generates revenue and is appropriate for this type of facility and any other events deemed worthy from a civic perspective. The specific responses to the comments on our last report draft provide a description of our overall booking policy recommendations. Afull booking policy is a legal document that is not appropriate for inclusion in'its entirety in a business plan. E. Step IV-E: Approach to Financing The Consultant shall identify alternative methods of financing the construction of the facility. Case studies from financing plans used in other markets will be presented to the Town to illustrate various options. The Consultant shall 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 shall provide the necessary information on capital costs and the availability of operating revenue to support 15 the project. In consultation with the Town and its financial advisors, the Consultant will identify funding alternatives and estimate the future capacity of those resources to support the construction and operations of the project. They Consultant shall develop parameters for the business plan 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 will be recommended to address a potential deficit. The Consultant shall recommend a preferred financing plan and estimate the debt service requirements of the proposed approach to financing. The Consultant 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). By using sensitivity analysis, the Consultant shall assess the risk to the Town 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. The Consultant shall design an approach to financing and project delivery that will mitigate these risks to the Town. Since public referendum dictates the financing vehicle for the facility, the information on financing methods in terms of sources of revenues is not relevant. HVS has done considerable work with Town staff and its financial advisors to evaluate various financing stra~Fegies given the dedicated revenues and their implications on the fund balance and operating reserve and continues to do so. The description of the financing plan begins on Section 11-13. As a part of the financing plan the Consultant will provide the following. • Required Governmental Approvals -The Consultant 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. HVS is assuming that the Town will grant the necessary permits to allow construction of the project. We can include any information on this process in the business plan if the Committee or Town deems such information to be necessary. Previous report drafts have not included an implementation schedule and there is still uncertainty regarding when the Town would issue the construction debt. Once a plan for issuing the debt is determined and approved we can assist in the development of an implementation schedule. 5. PERSONNEL The Consultant agrees that-the principal personnel responsible for the performance of this agreement will be: 16 o 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. o 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. o 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. o Lil~N Architects will provide physical planning and cost estimation as a Subconsultant to the Consultant. Staffing the LMN portion of the scope of work will include: o Chris Eseman, Partner-In-Charge with LMN, will oversee the performance of the LMN team members. o Mark Reddington, Partner at LMN, will provide physical planning and cost estimates. The Consultant reserves the right to change staffing assignments depending on the availability of personnel and the needs of the project. However, The Consultant agrees that no substitute of these personnel shall be made without the prior approval of the Town. The Consultant represents that its personnel engaged in this project are fully qualified and properly trained to perform the services related to this Agreement. None of the services provided for in this Agreement including personnel shall be modified withoutthe priorwritten approval of the Town. 6. TIIyiE OF PERFORNiAi~CE. SCHDULE AIVD DELIVERABLES The services set forth above shall commence on the date of this agreement specified above and shall be completed prior to December 31, 2003. This project will require approximately twelve (12) weeks to complete from the date of authorization to proceed. In the initial meeting the Consultant will discuss the goals of the study and determine what information is available to the project team. Based upon that discussion the Consultant will make any necessary changes to the scope of services with the Town's written consent. Proposed Project Schedule 17 Task W-1 W-2 W-3 W-4 W-5 W-6 W-7 W-8 W-9 W-10 W-il 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 Preliminary Report MD Phase II -Facility Recommendations Step A -Facility Program Recommendations Step B -Building Program Plan Phase III -Focus Group M Phase IV ~ Ec:onomic & 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 E: Presentation ;,MD 'hT' indicates a scheduled meeting. MD indicates a meeting and deliverable report Reporting -Upon completion of all project tasks in Phases I, the Consultant will present the preliminary findings with a PowerPoint presentation. The Consultant will discuss the findings with the Town and incorporate any recommendations the Town may have that may influence the direction of the project. After the completion of Phases I I-IV, the Consultant will prepare draft Interim Market Study and Feasibility Analysis Report that thoroughly documents of the study. Based on comment from client representatives, the Consultant will finalize the report and present the results of this analysis. The draft and final reports should contain specific information that addresses each task in this scope of work. 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 Comparable Market and Facility Analysis ^~ Demand and Operating Projections Economic Impact ^~ Business Plan Statement of Assumptions and Limitations Certifications Upon submission of the first draft, the Consultant will incorporate any suggestions the Town may have that shall enhance the effectiveness of the presentation. Once the Consultant has received the Town's final approval, The Consultant will print and deliver to the Town the final 18 report. The Consultant shall provide seventeen (17) copies of the draft and final report to the Town plus one camera ready copy. 7. COii~PENSATlO1~ The Consultant will be paid based on monthly bills that will include individual hours worked and itemized expenses. Bills shall include individual Consultant time and fees. Total compensation of this scope of service shall not exceed the following parameters: o Professional fees for this scope of service shall not exceed $76, 500. o Optional 3`d focus group in Denver $7,000 o Total expenses for the professional services shall not exceed $6,000 o Total expenses for focus groups shall not exceed: 10 400 o Total compensation (fees plus expenses) shall not exceed: $99,900 The fees above include allowances for one focus group in Chicago and a second focus group in Vail conducted in connection with the Meeting Planners International Institute. If the Town authorizes a third focus group it will agree to additional professional fees of $7,000. The Consultant will attempt to conduct all focus groups within the expense amounts shown above. If a third focus group would cause total expenses to exceed $16,400, then the Consultant will seek additional authorization for those expenses before proceeding with the third focus group. The hourly fee schedule for this scope of service is are based on Tables 1 and 2: 19 Table 1 Managing Director 250 Hours Fees Senior Vice President 200 Hours Fees Senior Manager 175 Hours Fees Senior Associate 150 Hours Fees SfaH 90 Hours Fees Sub- Consultant Fees Total Fees (rounded) Phase I -Market Study 5.7 1,475 63.7 12,737 47.3 8,279 0.0 - 65.3 5,873 28,305 Phase II -Facility Recommendations 4.7 1,768 0.0 - 7.4 1,298 0.0 - 1.4 730 75,000 17,595 Phase III -Focus Groups 7,500 7,500 Phase IV -Economic & Fiscal Impact 1.5 383 34.4 6,885 0.0 - 0.0 - 4.3 383 7,650 Phase V -Business Plan 24.7 6,781 20.9 4,172 0.0 - 28.8 4,327 8.6 773 - 15,453 Total (rounded) 37.0 9,147 119.0 ?3,795 55.0 9,577 29.0 4,327 80.0 7,158 22,500 76,500 The hourly estimates by staff member are approximate, and the Consultant reserves the right to change staff assignments in accordance with the needs of the project. However, the total fees per phase shall not exceed those identified in Table 1. The above fee structure includes initial fieldwork meetings, an interim meeting, attendance at one focus group, and a final meeting to present the project findings. The consultant 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). Any optional services that may benefit the Town but are not identified in the Scope of Work of this RFP, or if the Town 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 areas follows: Table 2: Hourly and Daily 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 Consultant Expenses - In addition to professional fees, the Town agrees to reimburse the Consultant 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 the Town's behalf. Expenses will be billed at 1.1 times cost. Total 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 seventeen (17) interim and seventeen (17) final reports. The Town will be billed monthly for expenses, which will be due and payable upon presentation of the Consultant's bills. Any individual expense over $1000 must be approved by the Town either by writing or email. 20 Focus Group Expenses - In addition to the Consultant fees and expenses described above, the Town agrees to pay expenses related to organizing and conducting the proposed focus groups up to $10,400. These expenses may include travel and honoraria for focus group attendees, meeting room rental, food and beverage and other related focus group expenses. The Town may pay these directly or if the Consultant incurs these expenses the Town agrees to reimburse the Consultant for such expenses and the focus group expenses incurred by the consulting team shall not be included in the Consultant expense cap and shall not be subject to a mark up. Focus group expenses are planned at the following Travel for Non local Attendees $5,000 Hotel & Other Travel 1,600 Gratuity 1,800 Meeting Expenses (F&B, rental, etc) 2,000 TOTAL 10 400 8. 9. DESIGNS, PLANS 8s DOCUf~iENTS All designs, plans, digital files, and documents produced by the Consultant relating to this scope of service shall become the property of the Town and it is agreed that the Consultant shall not retain any proprietary rights of said designs, plans and documents. INDEPEiVDEi~T CONTRACTOR The Consultant is an Independent Contractor, and nothing contained in this Agreement shall constitute or designate the Consultant or any of the Consultant's employees as agents or employees of the Town. Further, it is agreed that: A. The Town does not require the Consultant to work exclusively for them; B. The Town for whom the services are to be performed does not establish a quality standard for the Consultant; C. The Town may supply documents and plans, identify sites, suggest uses, and provide instructions as to what the Consultants work should include; but will not instruct the Consultant as to how the work will be performed; D. The Town can terminate the Agreement if the Consultant violates the terms of the Agreement or fails to produce a result that meets the specifications of the Agreement; E. The Town does not provide training for the Consultant's employees or workers; G. The Town does not dictate the time of performance except that a completion schedule has been established, as referenced above, with which the Consultant must comply; H. Payment for services rendered pursuant to this Agreement will be made to the trade or business name of the provider of services, rather than to the individual; and 21 The Town does not in any way combine their business operations with those of the consultant. THf= CONSULTANT AS AN INDEPENDENT CONTRACTOR IS NOT ENTITLED TO WORKER'S COMPENSATION BENEFITS AND THE CONSULTED IS OBLIGATED TO PA`s' FEDERAL AND STATE INCOME TAX ON ANY MONIES EARNED. 10 INSURANCE The Consultant shall obtain and maintain in force for the term of this Agreement the following insurance: A. Comprehensive general liability (including personal injury) in an amount not less than 1 million dollars ($1,000,000.00) per individual and not less than two million dollars ($2,000,000.00) per occurrence. B. Ensure any subcontractor also has a general liability provision (including personal injury) in an amount not less than one million dollars ($1,000,000.00) per individual and not less than two million dollars ($2,000,000.00) per occurrence. 11. NO WAIVER No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision of this Agreement, no such waiver shall constitute a continuing waiver unless otherwise expressly provided, nor shall the waiver of any default of tree terms of this Agreement be deemed a waiver of any subsequent default. 12. INDEMNIFICATION The Consultant agrees to indemnify and save the Town, its officers, directors and employees harmless from and against losses, claims, demands, liability, damages, suits, actions or causes of action of every kind and nature, including court costs and reasonable attorney's fees, defending such claim, which may be brought or asserted against the Town, its agents or employees to the extent caused by the negligent acts, errors, or omissions of the Consultant in the performance of this Agreement. 13. TERMINATION The performance of the work provided for in this Agreement may be terminated at any time in whole or, from time to time, in part by the Town for its convenience. Any such termination shall be effected by delivery to the Consultant of a written notice specifying the date upon which termination becomes effective. This Agreement may also be terminated by the Consultant in the event of a material default of any of the terms and conditions of this Agreement by the Town, provided the Consultant has first provided the Town with written notice of the default and the Town shall have failed to cure the spec;ified default within seven (7) days of receipt of the notice. In the event of termination, the Consultant shall be paid on a pro-rata basis for work satisfactorily completed prior to the date of termination and for the expenses prior to the date of termination. 22 14. JURISDICTION, VENUE, ATTORNEY FEES The jurisdiction and venue of any suit or cause of action to enforce the terms of Agreement shall lie in Eagle County, Colorado. Should either party to this Agreement bring suit to enforce this agreement, it is agreed that the prevailing party shall be entitled to recover its costs, expenses and reasonable attorney fees. A prevailing party is a party that shall have obtained a final judgment or order no longer subject to appeal. In the event of a settlement before final adjudication, both parties shall bear their own respective costs, expenses and attorney fees unless otherwise agreed. 15. NOTICE Any notice provided for in this Agreement shall be deemed given if received by the parties at the following addresses: Town of Vail ATTN: Russell Forrest 75 S. Frontage Rd. Vail, Colorado 81657 ph (970) 479-2146 Consultant ATTN: Thomas Hazinski Managing Director HVS International HVS Convention, Sports & Entertainment Facilities Consulting Division 445 West Erie, Suite 1-A, Chicago, Illinois 60610 Phone 312-587-9900 Fax 312-587-9908 www.hvsinternational.com 16. ASSIGNMENT This Agreement is for expert services of the Consultant that may not be assigned without the prior written consent of all parties to this Agreement. 17. COMPLIANCE WITH LAW The Consultant will not perform any of the services provided specified in this Agreement contrary to any local, state, federal, or county law. 18. SEVERABILITY Should any section of this Agreement be found to be invalid, all other sections shall remain in full force and effect as though severable from the part invalidated. 19. DISCRIMINATION The Consultant shall not discriminate against any employer or applicant for employment because of disability, race, color, age, sex, religion, or national origin. 23 20. INTENTION OF THE PARTIES This Agreement contains the entire intention of the parties and may only be changed by a written document signed by the parties. 21. EXECUTION By: Attest: The parties have executed this Agreement on the date specified above. TOWN OF VAIL, a Colorado municipal corporation Pam Brandmeyer, Town Manager LorE:lei Donaldson, Town Clerk CONSULTANT: HVS International By: Print: Title: \\VAIL\DATA\cdev\COMFAC\CONRFP\EDAWCON2.doc 24 4 IUIEflAORANDUII~ TO: Vail Town Council FROM: Community Development Department DATE: March 16, 2004 SUBJECT: A request for approval of Resolution No.11, Series of 2004 approving the Lionshead Public Facilities Development Plan. The urban renewal area within the Lionshead Public Facilities Development Plan generally includes the Lionshead area in the Town of Vail south of Interstate 70, north of Gore Creek, east of Red Sandstone Creek, and west of Middle Creek, and Tract K, Glen Lyon Subdivision Applicant: Vail Reinvestment Authority Planner: Russell Forrest SUI~iVIARY The Vail Reinvestment Authority is requesting that the Town Council approve the Lionshead Public Facilities Development Plan based on the findings in section VII of this memorandum. The purpose of this plan is to facilitate the redevelopment of Lionshead by removing or curing covenants that may impede redevelopment and providing significant public infrastructure, and to generate revenue to pay the for public improvements with tax increment financing. Two versions of the plan are provided in this proposal. Option 1 is to include the ability to implement tax increment financing and option 2 excludes that ability at this time. Staff is recommending that the Vail Town Council approve the Lionshead Public Facilities Development Plan using one of the two options mentioned in Section.lll of this memorandum. II. DESCRIPTION OF THE REQUEST Staff is requesting that the Vail Town Council approve the Lionshead Public Facilities Development Plan. The Lionshead Public Facilities Development Plan ("Plan") has been prepared by the Vail Reinvestment Authority ("VRA") for adoption by the Vail Town Council of the Town of Vail pursuant to the provisions of the Urban Renewal Law of the State of Colorado, Article 25 of Title 31, Colorado Revised Statutes. This Plan is prepared and adopted to satisfy the requirements of § 31-25-107, C.R.S., that an urban renewal plan be adopted by the governing body of the municipality before an urban renewal authority undertakes an urban renewal project. III. PLAN OPTIONS Based on recent discussions with legal counsel for the Vail Reinvestment Authority (Malcolm Murray) and bond counsel (Dee Wiser), staff wanted to provide two options to the Vail Town Council for the Lionshead Public Facilities Development Plan. The Lionshead Public Facilities Development Plan as articulated in Attachment 2 has been widely circulated and delivered to Eagle County and the School District. In section 5 of the plan it includes a provision to implement tax r incrE~ment financing in the Plan area. There is a statutory 25 year limit on the term for tax increment financing bonds. Tax increment financing bonds cannot be, from a practical standpoint, issued until construction begins or there is a contractual commitment from the developer(s) to begin construction. This 25 year count down starts at the time the plan is approved when that plan includes tax increment financing authority. One of the ongoing concerns is that there could be une~:pected delays with Lionshead projects and the Town's bonding capacity is reduced. Based on the issue of timing, staff explored the idea of not including TIF financing language in the plan and not starting the 25 year time frame. Malcolm Murray and Dee Wiser have both concluded that we could approve the Lionshead Public Facilities Development Plan with out TIF authority. The affect of this option which is provided for in Attachment 3 is to freeze the property tax base on the approval of the plan (which must be done before construction begins in Lionshead to capture the full increment) and it would give the Vail Reinvestment Authority the ability to remove covenants (at the owners request) that are impeding the redevelopment of Lionshead. Then, once development begins in Lionshead the Vail Town Council could amend the Lionshead Public Facilities Development Plan to include tax increment financing. In summary • Option 1-Plan with TIF as shown in Attachment 2 would freeze the base, empower the Vail Reinvestment Authority to implement tax increment financing, start the 25 year clock, and address covenants that impede development in Lionshead at the owners' request. • Option 2-Plan without TIF as shown in Attachment 3 would freeze the property tax base and empower the Vail Reinvestment Authority to address covenants that impede development in Lionshead at the owners request. Legal counsel believes that Option 2 can be approved with the legal notice given for the meeting in that it would be more limiting than the authority provided for in Option 1. Option 2 provides the maximum flexibility for bonding. The negative aspects of option 2 include: 1) there will be the need to republish an amendment to the plan at such time as the VRA would like to initiate TIF financing, and 2) the Urban Renewal Law could change and potentially impact the VRA ability to issue bonds. It should be noted that the most recent discussions about an amendment to the Llrban Renewal Law is focused on the issue of condemnation. IV. BACKGROUND Lionshead Planning Process The Lionshead Redevelopment Master Plan involved significant community involvement between 1997 and its adoption in 1999. This community involvement included meetings with merchants, homeowner associations, and the general public. The plan identifies specific public improvements to improve circulation and safety and also improve the aesthetic quality of Lionshead. In Section 9-8 of the Lionshead Redevelopment Master Plan, the plan states "tax increment financing is one of the most effective tools available for redevelopment of Lionshead. " Subsequent meetings with homeowners confirmed that a financing tool which did not raise taxes but leveraged new incremental growth in property values to pay for public; improvements was desirable. On March 18, 2002, the Vail Town Council reviewed the various public improvements proposed in the Lionshead Redevelopment Master Plan. Staff received preliminary input from the Vail Town Council that Frontage Road improvements, new streetscape, and improving circulation were priority public improvements. In November 2002, Council again reviewed options for moving forward with public financing and directed staff to proceed with the Lionshead Reinvestment Study. This study has confirmed that the Lionshead area meets the legal criteria for the creation of either an urban renewal authority or a downtown development authority. The major point of concern regarding the creation of an urban renewal authority has been the issue of condemnation. An urban renewal authority can have the power of condemnation. The Lionshead Task Force believes that condemning property from one property owner for conveyance to another developer is not necessary or desirable. However, it has become apparent that a number of old covenants and similar title restrictions may impede redevelopment of Lionshead. These covenants and restrictions prescribe uses and place other limitations on development which are inconsistent with the vision of the Lionshead Redevelopment Master Plan. Many of these covenants were put in place before the Town of Vail was incorporated, and, in some cases, the covenants conflict with one another. Condemnation with the concurrence and cooperation of owner of the fee interest may be needed to extinguish these obsolete covenants. Resolution No. 12, Series of 2003 addresses this issue with the following statement "WHEREAS the Vail Town Council believes that any condemnation by the Vail Reinvestment Authority should be undertaken with the concurrence of the owner of the underlying fee interest." An additional whereas in the revised resolution states "WHEREAS, the Vail Town Council does not believe that the use of condemnation for the purpose of acquiring property from one private owner for conveyance to a third-party private developer is neither necessary nor desirable. " How does TIF Work Tax Increment Financing (TIF) is a tool utilized by municipalities to finance public improvements in identified areas of need. Tax Increment Financing can be implemented through a Downtown Development Authority (DDA) or an Urban Renewal Authority (URA). An Urban Renewal Authority is meant to provide public amenities that encourage and facilitate corresponding new development. For example, the URA might use funds generated from a new development to build streetscape or improve circulation that helps make the new development possible. Another possibility is that if a property is to be redeveloped, the authority might work with the developer to provide some public amenities such as a plaza or pedestrian mall. An authority may also provide assistance to existing property owners who want to rehabilitate or expand their property. An example of this type of assistance might be a facade improvement loan program. Tax Increment Financing is not new and has been utilized around the country for decades to fund public improvements and encourage redevelopment. In Colorado there are 18 cities utilizing Tax Increment Financing (TIF) with15 through Urban Renewal Authorities (URA), and 3 through Downtown Development Authorities (DDA). Based on recent legal decisions by the Colorado Supreme Court, the Vail Town Council determined an Urban Renewal Authority was the preferable approach to take. Once: an Urban Renewal Authority has been established, the town is able to adopt a plan to use TIF. Once an area is designated and a plan is adopted, the property tax base for the redevelopment district is frozen. This means that after the date of . plan adoption, the assessed value to which the mill levy for the town, the water district, school district, and the county would be the same each year with adju:;tment for general reassessments. For example, if the assessed value in an area is $1 million on the date of plan adoption, then the mill levy for each of the overlapping taxing jurisdictions is applied to that $1 million assessed value each year of the plan. As the properties in the redevelopment district begin to increase in value due to the redevelopment efforts, that increase in assessed value times the comk~ined mill levy of the overlapping taxing jurisdictions goes to the URA. For exarriple, if the assessed value of property in the district increases to $10 million in year 5 of the plan, the taxes derived from multiplying the combined mill levy times the $1 million base go to the overlapping taxing jurisdictions and the mill levy times the $9 million increase goes to the URA. The plan can also affect town sales tax revenues but not state or county revenues. The plan can dedicate sales tax revenues above the base year revenues to the URA. The Vail Reinvestment Authority is only planning on committing property tax for public financing. No new taxes are established using TIF nor are taxes increased. The revenues produced by increased property values and increased retail sales activity are simply redistributed to pay for redevelopment projects. To create an urban renewal area certain conditions of "blight" must be found in the area. The blight definition in the Urban Renewal Law defines conditions that can impair the sound growth and development of a municipality. In Lionshead these conditions are found in deteriorated public infrastructure or infrastructure that does not adequately serve the area. Examples include faulty street and lot layout, unsafe conditions for pedestrians, erosion of concrete, deteriorating street pavement and inadequate facilities for stormwater run off, among others. These findings are well documented in the Lionshead Redevelopment Master Plan and are a major reason for the Town's adoption of the plan in 1999. As a follow up, the town commissioned the Lionshead Reinvestment Study which was prepared by URS Corporation of Denver, dated February 2004, in which 8 of 11 conditions of blight are documented as defined by the Urban Renewal Law. This document is one of several steps necessary to establish Vail's ability to draw upon Tax Increment Financing for the revitalization of Lionshead. V. ROLES OF THE REVIEWING BOARDS The Planning and Environmental Commission is required by state statute to make a recommendation to the Vail Town Council on whether the Lionshead Public Facilities Development Plan conforms to the Comprehensive Plan. The Town Council is the final decision making authority and will be asked to consider the approval of a resolution to adopt the plan. VI. APPLIC~4BLE PL~-Y~NING DOCUMENTS The following are applicable components of the Lionshead Redevelopment Master Plan which is a component of the Vail Comprehensive Plan. Purpose of Lionshead Master Plan This master plan was initiated by the Town of Vail to encourage redevelopment and new development initiatives within the Lionshead study area. Both public and private interests have recognized that Lionshead today lacks the economic vitality of Vail Village, its neighboring commercial district, and fails to offer a world class resort experience. Lionshead's economic potential has been inhibited by a number of recurrent themes: lack of growth in accommodation units ("hot beds'), poor retail quality, the apparent deterioration of existing buildings, an uninteresting and disconnected pedestrian environment, mediocre architectural character, and the absence of incentives for redevelopment. Redevelopment is critical for Vail and Lionshead if the community is to remain a competitive four-season resort. Other resorts are spending millions of dollars to upgrade their facilities in order to attract more visitors year-round. Growth in the number of skiers annually has slowed to one to two percent, intensifying competition for market share. Skiers are spending less time skiing and more time shopping, dining out, and enjoying other off-mountain activities. As a result, the demand for quality retail shopping and a greater diversity of experiences has dramatically increased. All of these are sorely in need of improvement in Lionshead. Vail, and specifically Lionshead, will fall behind if the community fails to upgrade the quality of its facilities and correct the existing flaws in its primary commercial nodes. Policy Objectives of the Lionshead Redevelopment Master Plan The Town Council adopted six policy objectives on November 4, 1996 to outline the important issues to be addressed in the master plan and to provide a policy framework for the master planning process: Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents. Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character. !litality and Amenities We must seize the opportunity to enhance guest experience and community interaction through expanded and additional activities and amenities such as performing arts venues, conference facilities, ice rinks, streetscape, parks and other recreational improvements. Stronger Economic Base Through Increased Live Beds In order to enhance the vitality and viability of Vail, renewal and redevelopment in Lionshead must promote improved occupancy rates and the creation of additional bed base ("live beds" or "warm beds') through new lodging products. Improved Access and Circulation The flow of pedestrian, vehicular, bicycle and mass transit traffic must be improved within and through Lionshead. Impn~ved Infrastructure The infrastructure of Lionshead (streets, walkways, transportation systems, parking, utilities, loading and delivery systems, snow removal and storage capacity) and its public and private services must be upgraded to support redevelopment and revitalization efforts and to meet the service expectations of our guests and residents. Creative Financing for Enhanced Private Profits and Public Revenues Financially creative and fiscally realistic strategies must be identified so that adequate capital maybe raised from all possible sources to fund desired private and public improvements. Design Objectives of the Lionshead Master Plan The Lionshead Redevelopment Master Plan is based on a set of fundamental design objectives that relate to the entire study area: The Pedestrian Environment The defining characteristic of Lionshead is its pedestrian environment, and the emphasis of the master plan is to improve its quality as a generator of activity. Pedestrian connections are intended to be the underlying framework of the physical plan. Two primary pedestrian corridors are proposed to provide for a cohesive, consistent, well defined pedestrian and retail environment serving both the destination guest and the local community. The first of these two corridors is an east-west connection between the west end of Dobson !ce Arena and the western edge of Lionshead. The second is anorth-south connection between the gondola ski yard and the north day lof. • Connections to the Natural Environment The master plan recommends ways to enhance and strengthen the physical and visual connections to the natural environment of Gore Creek and Vail Mountain. • Vehicular Circulation The master plan anticipates a network of streets and driveways that provides efficient access to public and private destinations but minimizes the negative impact of vehicles on the pedestrian environment and residential areas. Transit The master plan considers that an efficient and flexible public transit system serving the entire Lionshead study area, including potential new development in the west end of the district, is essential to its future success. Service and Delivery The master plan describes a consolidated, efficient service and delivery system that reduces interference with pedestrian areas, emergency vehicle routes, and traffic in general. The proposed facilities satisfy the current and projected service and delivery needs of the Lionshead study area. Parking The master plan provides for adequate public parking in Lionshead and the community as a whole but acknowledges that parking private vehicles is only one part of the overall Lionshead public access strategy. VII. FINDING/CRITERIA FOR REVIE~IING THE PLAN A. PEC Based on § 31-25-107, C.R.S, the Planning and Environmental Commission shall determine whether the Lionshead Public Facilities Development Plan conforms with Vail's Comprehensive Plan. The Lionshead Redevelopment Master Plan is an element of the Town of Vail Comprehensive Plan. The adoption of the Lionshead Public Facilities Development Plan is critical to achieving the above mentioned objectives of the Lionshead Redevelopment Master Plan. The Lionshead Redevelopment Master Plan identifies the creation of a TIF district as a critical next step as stated on page 9-8 of the plan: Tax Increment Financing (TIF) Tax increment financing is one of the most effective tools available for redevelopment of Lionshead. TIF allows the community to capture a portion of tax revenues that normally go to the county and to utilize them locally instead to implement public improvements. TIF does not raise taxes; it reallocates the incremental property or sales tax revenues resulting from improvements within the district and use. The plan directly supports the purpose statement of both the Lionshead Mixed Use 1 & 2 zone districts. The adoption of the Lionshead Public Facilities Development Plan is necessary to implement the public improvements identified in the Lionshead Redevelopment Master Plan and removing obsolete covenants that could impede development. Implementing the Lionshead Public Facilities Development Plan is critical to achieve all of the following development objectives in the Lionshead Master Redevelopment Plan. Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents. Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character. Vitality and Amenities We must seize the opportunity to enhance guest experience and community interaction through expanded and additional activities and amenities such as performing arts venues, conference facilities, ice rinks, streetscape, parks and other recreational improvements. Stronger Economic Base Through Increased Live Beds In order to enhance the vitality and viability of Vail, renewal and redevelopment in Lionshead must promote improved occupancy rates and the creation of additional bed base ("live beds" or "warm beds') through new lodging products. Improved Access and Circulation The flow of pedestrian, vehicular, bicycle and mass transit traffic must be improved within and through Lionshead. Improved Infrastructure The infrastructure of Lionshead (streets, walkways, transportation systems, parking, utilities, loading and delivery systems, snow removal and storage capacity) and its public and private services must be upgraded to support redevelopment and revitalization efforts and to meet fhe service expectations of our guests and residents. Creative Financing for Enhanced Private Profits and Public Revenues Financially creative and fiscally realistic strategies must be identified so that adequate capital maybe raised from all possible sources to fund desired private and public improvements. B. Town Council The Town Council is requested to make the following findings based on C.R.S. §31-25-107: Blight, as defined by C.R.S. §31-25-103(2), is present in the Lionshead Urban Renewal Area as documented by the Lionshead Reinvestment Study prepared by URS Corporation and based on evidence presented at the public hearing and as referenced in the Lionshead Public Facilities Development Plan. The following blight factors are present in the Lionshead Urban Renewal Area: defective and inadequate street layout; street system does not provide adequate access for motorists, pedestrians and emergency vehicles; unsafe conditions that endanger life or property; traffic and circulation patterns are dangerous for both pedestrians and motorists; deterioration of site improvements: public parking areas and concrete retaining walls are deteriorating; curbs and gutters on public property also show deterioration; defective or unusual conditions of title rendering the title unmarketable; restrictive covenants controlling uses on certain properties and other conditions of title impair the redevelopment of key parcels in the Plan Area; environmental contamination including runoff from unpaved parking areas and stormwater runoff from paved surfaces contaminate Gore Creek; and inadequate public improvements. The Lionshead Urban Renewal Area is a blighted area and is appropriate for an urban renewal project pursuant to Part 1 of Article 25 of Title 31, C.R.S. o The boundaries of the Lionshead Urban Renewal Area as identified in Figure 1 of the Lionshead Public Facilities Development Plan have been drawn as narrowly as feasible to accomplish the planning and development objectives for the Lionshead Urban Renewal Area. o The Lionshead Public Facilities Development Plan conforms to the Vail Comprehensive Plan, which is the general plan for the development of the Town of Vail. o There exist feasible methods for the relocation of individuals and families and business concerns in accommodations or areas suitable for their relocation and meeting the required standards under C.R.S. §31-25-107 (4)(a) and (b) . o Lionshead Public Facilities Development Plan will afford maximum opportunity, consistent with the sound needs of the Town of Vail as a whole, for the rehabilitation or redevelopment of the Lionshead Urban Renewal Area consistent with the Vail Comprehensive Plan. o The acquisition, clearance, rehabilitation, conservation, development or redevelopment of a combination thereof of the Lionshead Urban Renewal Area pursuant to the Lionshead Public Facilities Development Plan is necessary in the best interests of the public health, safety, morals, and welfare of the citizens of the Town of Vail The Town of Vail has published the notice of the time, place, and purpose of the public hearing to consider the adoption of the Lionshead Public Facilities Development Plan in the Vail Daily in conformance with C.R.S. §31-25-107(3). Town of Vail has provided written notice of the public hearing to consider the adoption of the Lionshead Public Facilities Development Plan to property owners, residents, and business owners within the proposed Lionshead Urban Renewal Area at their last known addresses in conformance with C.R.S. §31-25- 107(4)(c). VIII. STAI=F AND PEC RECOMMENDATION On February 23, 2004, the Planning and Environmental Commission voted 6-1 to find that the Lionshead Public Facilities Development Plan was in conformity to the Vail (:omprehensive Plan. The Community Development Department recommends that the Vail Town Council approve the Lionshead Public Facilities Development Plan. Staff's recommendation is based upon the review of the proposal as outlined in Section VII of this memorandum and the testimony and evidence presented. Staff recommends that the Vail Town Council makes the following finding: "That upon review of the proposed Lionshead Public Facilities Development Plan, the Vail Town Council finds that the plan, as proposed, is in conformity with the Town of Vail's Comprehensive Plan and the findings stated in section Vll of this memorandum. The Vail Town Council's determination of the findings is based upon review of the criteria and the testimony and evidence presented on this application". Attachments: Attachment 1: Resolution No. 11, Series of 2004 Attachment 2: Lionshead Public Facilities Development Plan with TIF Attachment 3: Lionshead Public Facilities Development Plan with out TIF Attachment 4: Lionshead Reinvestment Study prepared by URS Attachment 5: PEC Meeting from February 23, 2004 F:\Users\cdev\COUNCILIMEMOS1041LionsheadPublicFacilitiesPlan031604.doc 10 Attachment 1 RESOLUTION NO. 11 Series of 200 A RESOLUTION APPROVING THE LIONSHEAD PUBLIC FACILITIES DEVELOPMENT PLAN AND FINDING THAT THE LIONSHEAD URBAN RENEWAL AREA IS A BLIGHTED AREA, DESIGNATING SUCH AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT PURSUANT TO THE URBAN RENEWAL PLAN, AND FINDING THAT THE ACQUISITION, CLEARANCE, REHABILITATION, CONSERVATION, DEVELOPMENT, REDEVELOPMENT OR A COMBINATION THEREOF OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY, MORALS, AND WELFARE OF THE CITIZENS OF THE TOWN OF VAIL. WHEREAS, an urban renewal plan for the Lionshead Area has been submitted to the Town Council of the Town of Vail for appropriate action pursuant to Part 1 of Article 25 of Title 31, C.R.S.; and WHEREAS, the Lionshead Area which is subject to the Lionshead Public Facilities Development Plan is described in Figure 1 to the Lionshead Public Facilities Development Plan; and WHEREAS, the Town Council of the Town of Vail adopted the Lionshead Master Redevelopment Plan on December of 1999, which is a component of the Vail Comprehensive Plan; and WHEREAS, the Lionshead Public Facilities Development Plan has previously been submitted to the Town of Vail Planning and Environmental Commission for its review and recommendations as to conformity with the Vail Comprehensive Plan pursuant to C.R.S. §31- 25-107(2); and WHEREAS, the Town of Vail Planning and Environmental Commission has determined that the Lionshead Public Facilities Development Plan does conform to the Town of Vail Comprehensive Land Use Plan; and WHEREAS, no property in the Lionshead Urban Renewal Area has been included in an urban renewal plan previously submitted to the Town Council of the Town of Vail; and WHEREAS, the Town Clerk of the Town of Vail has published the notice of the time, place, and purpose of the public hearing to consider the adoption of the Lionshead Public Facilities Development Plan in the Vail Daily in conformance with C.R.S. §31-25-107(3); and WHEREAS, the Town Council of the Town of Vail has provided written notice of the public hearing to consider the adoption of the Lionshead Public Facilities Development Plan to property owners, residents, and business owners within the proposed Lionshead Urban Renewal Area at their last known addresses in conformance with C.R.S. §31-25-107(4)(c); and WHEREAS, the Eagle County Commissioners have received notification of and copies of the Lionshead Public Facilities Development Plan as well as such additional information as is required by C.R.S. §31-25-107(3.5); and WHEREAS, the Eagle County School District has, received notification of and copies of the Lionshead Public Facilities Development Plan and has been given an opportunity to participate in an advisory capacity; and WHEREAS, no more than one hundred twenty days have passed since the commencement of the first public hearing of the urban renewal plan, and WHEREAS, the Town Council of the Town of Vail has considered the Lionshead Reinvestment Study prepared by URS Corporation and the proposed Lionshead Public Facilities Development Plan; and WHEREAS the Vail Town Council believes that any condemnation by the Vail Reinvestment Authority should be undertaken with the concurrence of the owner of the underlying fee interest; and WHEREAS, Town Council of the Town of Vail has conducted a public hearing and considered thE: public testimony received. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL THAT: 1. Blight, as defined by C.R.S. §31-25-103(2), is present in the Lionshead Urban Renewal Area as documented by the Lionshead Reinvestment Study prepared by URS Corporation and based on evidence presented at the public hearing and as reflected in the Lionshead Public Facilities Development Plan. The following blight factors are present in the Lionshead Urban Renewal Area: defective and inadequate street layout; street system does not provide adequate access for motorists, pedestrians and emergency vehicles; unsafe conditions that endanger life or property; traffic and circulation patterns are dangerous for both pedestrians and motorists; deterioration of site improvements: public parking areas and concrete retaining walls are deteriorating; curbs and gutters on public property also show deterioration; defective or unusual conditions of title rendering the title unmarketable; restrictive covenants controlling uses on ,certain properties and other conditions of title impair the redevelopment of key parcels in the Plan Area; environmental contamination including runoff from unpaved parking areas and stormwater runoff from paved surfaces contaminate Gore Creek; and inadequate public improvements. 2. The Lionshead Urban Renewal Area is a blighted area and is appropriate for an urban renewal project pursuant to Part 1 of Article 25 of Title 31, C.R.S. 3. The boundaries of the Lionshead Urban Renewal Area as identified in Figure 1 of the Lionshead Public Facilities Development Plan have been drawn as narrowly as feasible to accomplish the planning and development objectives for the Lionshead Urban Renewal Area. 4. The Lionshead Public Facilities Development Plan conforms to the Comprehensive Land Use Plan, which is the general plan for the development of the Town of Vail. 5. There exist feasible methods for the relocation of individuals and families and business concerns in accommodations or areas suitable for their relocation. 2 6. Lionshead Public Facilities Development Plan will afford maximum opportunity, consistent with the sound needs of the Town of Vail as a whole, for the rehabilitation or redevelopment of the Vail Comprehensive Plan. 7. The acquisition, clearance, rehabilitation, conservation, development or redevelopment of a combination thereof of the Lionshead Urban Renewal Area pursuant to the Lionshead Public Facilities Development Plan is necessary in the best interests of the public health, safety, morals, and welfare of the citizens of the Town of Vail. 8. The Lionshead Public Facilities Development Plan is hereby approved. INTRODUCED, READ, APPRO!!ED AND ADOPTED this 6th clay of March, 2004. Rodney Slifer, Mayor, Town of Vail ATTEST: Lorelei Donaldson, Town Clerk, Town of Vail F:\Userslcdev\RUSS\Projects\Lionshead\TIF\TIF Legal Docs\Lionshead\LionsheadwTlFresolution.doc 3 Attachment 2 LIONSHEAD PUBLIC FACILITIES DEVELOPMENT PLAN VAIL (REINVESTMENT AUTHORITY (With TIF) MUR\57037\436628.01 TABLE OF CONTENTS 1. INTRODUCTION .................................................................................................................1 1.1 Preface ........................................................................................................................ 1 1.2 Background ................................................................................................................. 1 1.3 Definitions ................................................................................................................... 2 2. LEGISLATIVE FINDINGS ...................................................................................................2 2.1 Qualifying Conditions ......................................................................:............................2 2.2 Projects .......................................................................................................................3 2.3 Planning Approval .......................................................................................................3 2.4 Consultation .........................................................:......................................................3 2.5 Public Hearing .............................................................................................................3 2.6 Boundaries of the Plan Area ........................................................................................4 2.7 Other Findings .............................................................................................................4 3. DESCRIPTION OF PLAN OBJECTIVES .............................................................................5 4. PLAN IMPLEMENTATION ..................................................................................................5 4.1 Redevelopment and Rehabilitation Actions .................................................................5 4.2 Property Acquisition and Land Assemblage ................................................................5 4.3 Relocation Assistance and Payments ..........................................................................6 4.4 Public Improvements and Facilities .............................................................................6 4.5 Redevelopment Agreements .......................................................................................6 4.6 Interagency Cooperation .............................................................................................6 4.7 Advisory Committee ....................................................................................................6 5. PROJECT FINANCING .......................................................................................................7 5.1 Tax Increment Financing .............................................................................................7 5.2 Additional Taxing Entities ............................................................................................8 5.3 Participating Interest in Projects ..................................................................................8 6. MODIFICATIONS TO THIS PLAN ......................................................................................8 MUR\58179\432486.01 1 LIONSHEAD PUBLIC FACILITIES INVESTMENT PLAN February 2004 I. INTROIDUCTION 1.1 Preface This Lionshead Public Facilities Investment Plan ("Plan") has been prepared by the Vail Reinvestment Authority ("VRA") for adoption by the Town Council of the Town of Vail pursuant to provisions of the Urban Renewal Law of the State of Colorado, Article 25 of Title 31, Colorado Revised Statutes. This Plan is prepared and adopted to satisfy the requirements of § 31-25-107, C.R.S., that an urban renewal plan be adopted by the governing body of the municipality before an urban renewal authority undertakes an urban renewal project. The administration of this project and the enforcement and execution of this Plan shall be performed by VRA. 1.2 Background The Lionshead area is one of four base areas for the Vail Mountain Ski Area. The area was originally developed from 1972-1974 as the base for the Lionshead gondola. Lodging, condominiums and retail were constructed over a period of years, often without coordinated planning of circulation and public transportation facilities of the area. The Lionshead parking garage was built in 1981 significantly increasing the pedestrian traffic in the area. An extensive bus system has developed as the major means of moving people around Vail. The Lionshead area now accounts for approximately 45% of the skier access to Vail Mountain. As a result of this rapid development activity, the traffic and transportation network for personal vehicles, pedestrians and delivery vehicles does not work well. There are many vehicle/pedestrian conflicts creating unsafe conditions throughout the Lionshead area. In addition, the public infrastructure in the Lionshead area has deteriorated. Extremes of temperature and topography as well as the intense utilization of the area by residents and guests has caused streets, sidewalks, curbs and gutters, and retaining walls to be subject to accelerated deterioration. Inadequate attention to runoff from impervious surfaces and deteriorated drainage facilities have contributed to water quality deterioration in the Gore Creek. The Lionshead Redevelopment Master Plan, adopted in 1999, identifies specific public infrastructure improvements that need to occur and provides incentives for private redevelopment. A major implementation action in the Master Plan is the redevelopment of the Lionshead gondola and Sun Bird building sites into ahigh-end hotel. Other major development sites include the remodeling of the Marriott and Antler properties. These development projects will place many more guests and residents into the Lionshead area. To properly support this major private reinvestment in Lionshead, the supporting transportation infrastructure needs to be upgraded. Sidewalks and streets need to be constructed or reconstructed. A transportation center must be built to accommodate the increased usage of the Lionshead area, and improvements to the Frontage Road are needed to serve the increased traffic. This Plan is intended to provide the financial mechanisms necessary to support the renovation and reconstruction of the public infrastructure in Lionshead. MUR\58179\432486.61 9.3 Definitions Cooperation Agreement: Any agreement between VRA and the Town of Vail or any other public body regarding action taken pursuant to any of the powers set forth in the Urban Renewal Law, or in any other provision of Colorado law, for the purpose of facilitating public undertakings deemed necessary or appropriate by VRA under this Plan. Plan: This Lionshead Public Facilities Investment Plan as it may be modified from time to time. Plan Area: The area described in Section 2.6 of this Plan, and depicted on Figure 1, which has been found to be blighted and for which the undertaking of urban renewal projects is declared to be necessary. Redevelopment Agreement: An agreement between VRA and a developer or developers representing the redevelopment or rehabilitation of property within the Plan Area. 2. LEGISLATIVE FINDINGS 2.1 Qualifying Conditions Based on the Lionshead Reinvestment Study prepared by URS Corporation, dated February 2004, and evidence presented at the public hearing, the Town Council finds that there exists blight, as defined by § 31-25-103(2), C.R.S., in the Plan Area. The Lionshead Reinvestment Study found that blight conditions were prevalent throughout the area. The conditions found to exist include: a) Defective and inadequate street layout: Street system does not provide adequate access for motorists, pedestrians and emergency vehicles. Turning radii are often inadequate. b) Unsafe conditions that endanger life or property: Traffic and circulation patterns are dangerous for both pedestrians and motorists. c) Deterioration of site improvements: Public parking areas and concrete retaining walls are deteriorating. Curbs and gutters on public property also show deterioration. d) Defective or unusual conditions of title rendering the title unmarketable: Restrictive covenants controlling uses on certain properties and other conditions of title impair the redevelopment of key parcels in the Plan Area. In many instances, covenant provisions conflict with or have been ignored by prior development. MUR\58179\432486.01 2 e) Environmental contamination: Runoff from unpaved parking areas and stormwater runoff from paved surfaces contaminate Gore Creek. fl Inadequate public improvements: Streets and sidewalks on public property are not adequate for the traffic and do not provide a safe separation for pedestrians from motor vehicles. Pavement, curb and gutter and retaining walls on public property are deteriorating. Overhead utilities are presents and stormwater management is inadequate. The Town Council finds that the presence of these factors substantially impairs or arrests the sound growth of the Town of Vail, retards the provision of housing accomrnodations, constitutes an economic and social liability and is a menace to the public riealth, safety, morals and welfare of the Town of Vail. 2.2 Projects The Plan Area is appropriate for one or more urban renewal .projects and other undertakings of the VRA as authorized by the Urban Renewal Law. 2.3 Planning Approval A general plan for the Town of Vail, known as the Vail Comprehensive Plan, has been adopted by the Town Council. In addition, the Lionshead area is the subject of the Lionshead Redevelopment Master Plan which is the Town's official planning document for guiding the redevelopment of the Lionshead area and is a part of the Vail Comprehensive Plan. This Plan has been submitted to the Planning and Environmental Commission of the Town of Vail for review and recommendations as to its conformity with thE: Vail Comprehensive Plan and the Lionshead Master Plan. The Planning and Environmental Commission met on February 23, 2004 and has submitted its written recommendations via a staff memorandum to the Town Council that the Lionshead Public F=acilities Development Plan is in conformity with the Vail Comprehensive Plan. 2.4 Consultation This Plan has been submitted to the Board of County Commissioners of Eagle County as required by the Urban Renewal Law. The Eagle County School District has been advised of this Plan and has been given an opportunity to provide comments. 2.5 Public Hearing The Town Council of the Town of Vail has held a public hearing to consider this Plan after public notice thereof in compliance with the Urban Renewal Law in the Vail Daily describing the time, date, and purpose of the public hearing, identifying the Plan Area and outlining the general scope of the projects being considered for implementation pursuant to this Plan. Pursuant to C.R.S. §31-25-107(4)(c), notice of the public hearing was provided to owners, residents, and business owners in the Plan Area at their last know address at least 30 days before the date of the public hearing.. MUR\58179\432486.01 .3 2.6 Boundaries of the Plan Area The boundaries of the Plan Area shall be as set forth in Figure 1 attached hereto. The Town Council finds that the boundaries of the Plan Area have been drawn as narrowly as feasible to accomplish the planning and development objectives of this Plan. 2.7 Other Findings 2.7.1 One or more of the projects will require the demolition and clearance, subject to other restrictions, of certain public improvements within the Plan Area as provided in this Plan. Such actions may be necessary to eliminate unsafe conditions, eliminate obsolete and other uses detrimental to the public welfare, and otherwise remove and prevent the spread of deterioration. 2.7.2 In order to eliminate or reduce the. qualifying conditions. currently existing within the Plan Area, as well as those qualifying conditions which may be reasonably anticipated to develop within the Plan Area in the absence of public action, it is the intent of the Town Council in adopting this Plan that VRA exercise all powers authorized to be exercised by VRA under the Urban Renewal Law and which are necessary, convenient or appropriate to accomplish the objectives of this Plan. It is the intent of this Plan that VRA shall exercise all such powers as may now be possessed or hereafter granted to VRA for the elimination of qualifying conditions within the Plan Area. 2.7.3 Many properties in the Plan Area are subject to restrictive covenant provisions from previous subdivisions of property in Vail and Lionshead. In many cases, the covenant provisions conflict with one another and in some cases have been ignored by existing development. These restrictive covenants create an impediment to the redevelopment of properties within the Plan Area, particularly the financing of improvements which are key to the redevelopment of the Plan Area. VRA is authorized to use the power of eminent domain, with the consultation and concurrence of the owner of the underlying fee interest, to eliminate restrictive covenant provisions and other conditions of title which prevent redevelopment of properties within the Plan Area. 2.7.4 If it becomes necessary for individuals, families or businesses to relocate as a result of the implementation of this Plan, a feasible method exists for the relocation of individuals, families, and business concerns that may be displaced, insuring that decent, safe and sanitary dwelling accommodations and business locations can be made available. 2.7.5 The powers conferred by the Urban Renewal Law are for public uses and purposes for which public money may be expended and the police powers exercised, and this Plan is in the public interest and necessity, such finding being a matter of legislative determination by the Town Council. MUR\58179\432486.01 2.7.6 VRA may, in its discretion, issue bonds, including bonds or other obligations, to the extent permitted by law. 3. DESCF:IPTION OF PLAN OBJECTIVES This Plan is an important tool to address the problems confronting the Lionshead area. The Plan helps to further the goals for the area previously outlined in the Lionshead Redevelopment Master Plan. The objectives for the Plan include the following: • Create a sense of place and an improved aesthetic character for Lionshead for both residents and guests. • Renovate or redevelop the deteriorated and/or outdated residential and commercial buildings and provide enhanced amenities. • Enhance the aesthetic appearance of the area to make it more appealing. • Improve pedestrian, bicycle, mass transit and auto accessibility and circulation. • Eliminate impediments to the redevelopment of key facilities with the Plan Area. • Upgrade and restore public infrastructure including transportation facilities, parking, sidewalks and streetscapes. 4. PLAN IMPLEMENTATION In order to accomplish the objectives of this Plan and to fully implement this Plan, VRA shall bey authorized to undertake the following activities: 4.1 Redevelopment and Rehabilitation Actions Redevelopment and rehabilitation actions within the Plan Area may include such undertakings and activities as are in accordance with this Plan, the Lionshead Master Plan, and the Urban Renewal Law, including without limitation: demolition and removal of public buildings and improvements as set forth herein; installation, construction and reconstruction of public improvements as set forth herein; elimination of unhealthful, unsanitary or unsafe conditions; elimination of obsolete or other uses detrimental to the public ~Nelfare; and other actions to remove or to prevent the spread of deterioration. VRA is authorized to negotiate and enter into agreements with landowners, developers, and investors regarding appropriate projects throughout the Plan Area which will generai:e incremental property tax revenues. 4.2 Property Acquisition The principal purpose of this Plan is the rehabilitation and enhancement of public infrastructure in the Plan Area and the support of new private investment occurring on private property. Restrictive covenants and other conditions of title interfere with new private investment. The power of eminent domain as authorized by the Urban Renewal Law may be utilized as VRA determines necessary to eliminate and remove restrictive MUR\58179\432486.01 5 covenants and other conditions of title which interfere with new private investment with the consultation and concurrence of the owner of the underlying fee interest. 4.3 Relocation Assistance and Payments In the event it is necessary to relocate or displace any business or other commercial establishments as a result of any property acquisition, VRA may adopt relocation policies for payment of relocation expenses. Such expenses may include moving expenses, actual direct losses of property for business concerns, and goodwill and lost profits that are reasonably related to relocation of the business, resulting from its displacement for which reimbursement or compensation is not otherwise made. 4.4 Public Improvements and Facilities VRA may undertake certain actions which would make the Plan Area more attractive for private .investment by providing public improvements consistent with the Lionshead Master Plan. These improvements include street and traffic improvements, streetscape improvements, a transportation center, landscaping, park and recreation facilities, utility improvements, open space acquisition, stormwater improvements, public art projects, and other similar improvements necessary to carry out the objectives of the Lionshead Master Plan. 4.5 Redevelopment Agreements VRA is authorized to enter into one or more Redevelopment Agreements with developer(s) and such other entities as are determined by VRA to be necessary or desirable by VRA to carry out the purposes of this Plan. Such Redevelopment Agreements may contain such terms and provisions as shall be deemed necessary or appropriate by VRA for the purpose of undertaking the activities contemplated by this Plan or the Urban Renewal Law, and may further provide for such undertakings by VRA, including financial assistance, as may be necessary for the achievement of the objectives of this Plan or as may otherwise be authorized by the Urban Renewal Law. 4.6 Interagency Cooperation VRA may enter into one or more Cooperation Agreements with the Town of Vail or other public bodies pursuant to the Urban Renewal Law. Cooperation Agreements may provide, without limitation, for financing, for construction of public improvements, for administration, for technical assistance and for other purposes. 4.7 Advisory Committee VRA shall establish an advisory committee of Lionshead residential and commercial property owners to advise the VRA on matters related to the implementation of the Plan. The composition of the committee shall be determined by the VRA. MUR\SS 179\432486.01 5. PROJECT FINANCING 5.1 Tax Increment Financing The primary method of financing the projects undertaken in furtherance of this Plan shall be the use of property tax increment financing pursuant to Section 31-25-107(9), C.R.S., which is by this reference incorporated herein as if set forth in its entirety. If there is any conflict between the Urban Renewal Law and this Plan, the provisions of the .Urban Renewal Law shall control. All property taxes collected within the Plan Area shall be divided as follows: a) That portion of the taxes which are produced by the levy at the rafe fixed each year by or for each such public body upon the valuation for assessment of taxable property in the Urban Renewal Area last certified prior to effective date of approval of the Urban Renewal Plan or, as to an area later added to the Urban Renewal Area, the effective date of the modification of the Plan ,shall be paid into the funds of each such public body as are all other taxes collected by or for said public body. b) Except as VRA may legally provide otherwise under the Urban Renewal Law, the portion of such property in excess of the amounts described in paragraph a), above, shall be allocated to and, when collected, paid into a special fund to fund VRA's obligations with respect to any project within the Plan Area, including payment of the principal of, the interest on, and any premiums due in connection with the bonds, loans or advances to, or indebtedness incurred by (whether funded, refunded, assumed, or otherwise) VRA for financing or refinancing, in whole or in part, the projects in the Plan Area. c) When such bonds, loans, advances, and indebtedness, if any, including interest thereon and any premiums due in connection therewith, have been paid, but in no event later than 25 years following the adoption of this Plan for the construction of the projects' improvements, any excess property tax collections not allocated pursuant to this paragraph or any Cooperation Agreement between VRA and Town or other taxing jurisdiction, shall be paid into the funds of said jurisdiction or public body. Unless and until the total property tax collections in the Plan Area exceed the base year property tax collections in the Plan Area, as provided in paragraph a), above, all such property tax collections shall be paid into the funds of the appropriate public body. VRA reserves the right to enter into Cooperation Agreements with select taxing jurisdictions relative to allocation of incremental tax revenues. d) The adoption of this Plan shall be deemed an adoption of a provision that taxes, if any, levied after the effective date of the approval of this Plan upon taxable property in the Plan Area shall be divided among VRA and various taxing entities for a period of 25 years thereafter or such lesser period as provided in Section 31-25-107(9), C.R.S., as exists on the date MUR\58179\432486.01 '] hereof, or in any Cooperation Agreement between VRA and a county, the Town or a special district. 5.2 Additional Taxing Entities VRA recognizes that tax increment financing is the primary tool for funding redevelopment activities. However, Colorado law allows the creation of additional political subdivisions within a municipality to provide services within a defined area. These entities include metropolitan and other special districts as well as business improvement districts. These districts have available certain taxing powers that can generate revenues in addition to those generated by tax increment financing. VRA is committed to exploring a variety of strategies and mechanisms to complement tax increment financing. VRA recognizes that it is imperative that financing mechanisms be flexible and creative to provide necessary assistance to a broad range of redevelopment activities. 5.3 Participating Interest in Projects VRA may require a participating interest in private development projects for which it provides financial assistance. Public assistance is frequently needed for redevelopment projects in order to fill the gap between traditional equity and debt financing and the additional costs of a redevelopment project. In the event the project generates revenues at or greater than market return, the public should share in the success of the project. The terms of the participating interest will be specified in the Redevelopment Agreement at a level and on terms appropriate for each project. 6. MODIFICATIONS TO THIS PLAN This Plan may be amended or modified pursuant to provision of the Urban Renewal Law as provided in § 31-25-107, C.R.S. Modifications to this Plan will require appropriate notification in accordance with the Urban Renewal Law, including submission to the Board of County Commissioners of Eagle County and written notice provided to all property owners, residents, and owners of businesses in the Plan Area not less than 30 days prior to the consideration of a substantial modification in accordance with C.R.S. 31-25-107 (4)(c). F:\Users\cdev\RUSS\Projects\LionsheadlTlF\TIF Legal Docs\Lionshead\PublicFacilitiesPLanwithTIF316.doc MUR\58179\432486.01 8 Figure 1-Plan Area MUR\58179\432486.01 Attachment 3 ~~ ~~~ (No ~9F) MUR\57037\436628.01 TABLE OF CONTENTS 1. INTRODUCTION .................................................................................................................1 1.1 Preface ........................................................................:...............................................1 1.2 Background .................................................................................................................1 1.3 Defiriitions ...................................................................................................................2 2. LEGISLATIVE FINDINGS ...................................................................................................2 2.1 Qualifying Conditions ...................................................................................................2 2.2 Proje~cts .......................................................................................................................3 2.3 Planning Approval .................:.....................................................................................3 2.4 Con~;ultation ................................................................................................................3 2.5 Public Hearing .............................................................................................................3 2.6 Boundaries of the Plan Area ........................................................................................4 2.7 Other Findings .............................................................................................................4 3. DESCRIPTION OF PLAN OBJECTIVES .............................................................................5 4. PLAN IMF'LEMENTATION ..................................................................................................5 4.1 Redevelopment and Rehabilitation Actions .................................................................5 4.2 Property Acquisition and Land Assemblage ................................................................5 4.3 Relocation Assistance and Payments ..........................................................................6 4.4 Public Improvements and Facilities .............................................................................6 4.5 Redevelopment Agreements .......................................................................................6 4.6 Interagency Cooperation .............................................................................................6 4.7 Advi:>ory Committee ....................................................................................................6 5. PROJECT FINANCING .......................................................................................................7 5.1 Participating Interest in Projects ..........................................................:.......................7 6. MODIFICATIONS TO THIS PLAN ......................................................................................7 MUR\58179\432486.01 1 LIONSHEAD PUBLIC FACILITIES INVESTMENT PLAN February 2004 INTRODUCTION 1.1 Preface This Lionshead Public Facilities Investment Plan ("Plan") has been prepared by the Vail Reinvestment Authority ("VRA") for adoption by the Town Council of the Town of Vail pursuant to provisions of the Urban Renewal Law of the State of Colorado, Article 25 of Title 31, Colorado Revised Statutes. This Plan is prepared and adopted to satisfy the requirements of § 31-25-107, C.R.S., that an urban renewal plan be adopted by the governing body of the municipality before an urban renewal authority undertakes an urban renewal project. The administration of this project and the enforcement and execution of this Plan shall be performed by VRA. 1.2 Background The Lionshead area is one of four base areas for the Vail Mountain Ski Area. The area was originally developed from 1972-1974 as the base for the Lionshead gondola. Lodging, condominiums and retail were constructed over a period of years, often without coordinated planning of circulation and public transportation facilities of the area. The Lionshead parking garage was built in 1981 significantly increasing the pedestrian traffic in the area. An extensive bus system has developed as the major means of moving people around Vail. The Lionshead area now accounts for approximately 45% of the skier access to Vail Mountain. As a result of this rapid development activity, the traffic and transportation network for personal vehicles, pedestrians and delivery vehicles does not work well. There are many vehicle/pedestrian conflicts creating unsafe conditions throughout the Lionshead area. to addition, the public infrastructure in the Lionshead area has deteriorated. Extremes of temperature and topography as well as the intense utilization of the area by residents and guests has caused streets, sidewalks, curbs and gutters, and retaining walls to be subject to accelerated deterioration. Inadequate attention to runoff from impervious surfaces and deteriorated drainage facilities have contributed to water quality deterioration in the Gore Creek. The Lionshead Redevelopment Master Plan, adopted in 1999, identifies specific public infrastructure improvements that need to occur and provides incentives for private redevelopment. A major implementation action in the Master Plan is the redevelopment of the Lionshead gondola and Sun Bird building sites into ahigh-end hotel. Other major development sites include the remodeling of the Marriott and Antler properties. These development projects will place many more guests and residents into the Lionshead area. To properly support this major private reinvestment in Lionshead, the supporting transportation infrastructure needs to be upgraded. Sidewalks and streets need to be constructed or reconstructed. A transportation center must be built to accommodate the increased usage of the Lionshead area, and improvements to the Frontage Road are needed to serve the increased traffic. This Plan is intended to provide the financial mechanisms necessary to support the renovation and reconstruction of the public infrastructure in Lionshead. MUR\58179\432486.01 1.3 Definitions Cooperation Agreement: Any agreement between VRA and the Town of Vail or any other public body regarding action taken pursuant to any of the powers set forth in the Urban Renewal Law, or in any other provision of Colorado law, for the purpose of facilitating public undertakings deemed necessary or appropriate by VRA under this Plan. Plan: This Lionshead Public Facilities Investment Plan as it may be modified from time to timE:. Plan Area: The area described in Section 2.6 of this Plan, and depicted on Figure 1, which has been found to be blighted and for which the undertaking of urban renewal projects is declared to be necessary. Redevelopment Agreement: An agreement between VRA and a developer or developers representing the redevelopment or rehabilitation of property within the Plan Area. 2. LEGISLATIVE FINDINGS 2.1 Qualifying Conditions Based on the Lionshead Reinvestment Study prepared by URS Corporation, dated February 2004, and evidence presented at the public hearing, the Town Council finds that there exists blight, as defined by § 31-25-103(2), C.R.S., in the Plan Area. The Lionshead Reinvestment Study found that blight conditions were prevalent throughout the area. The conditions found to exist include: a) Defective and inadequate street layout: Street system does not provide adequate access for motorists, pedestrians and emergency vehicles. Turning radii are often inadequate. b) Unsafe conditions that endanger life or property: Traffic and circulation patterns are dangerous for both pedestrians and motorists. c) Deterioration of site improvements: Public parking areas and concrete retaining walls are deteriorating. Curbs and gutters on public property also show deterioration. d) Defective or unusual conditions of title rendering the title unmarketable: Restrictive covenants controlling uses on certain properties and other conditions of title impair the redevelopment of key parcels in the Plan Area. In many instances, covenant provisions conflict with or have been ignored by prior development. MUR\58179\432486.01 2 , e) Environmental contamination: Runoff from unpaved parking areas and stormwater runoff from paved surfaces contaminate Gore Creek. f) Inadequate public improvements: Streets and sidewalks on public property are not adequate for the traffic and do not provide a safe separation for pedestrians from motor vehicles. Pavement, curb and gutter and retaining walls on public property are deteriorating. Overhead utilities are present and stormwater management is inadequate. The Town Council finds that the presence of these factors substantially impairs or arrests the sound growth of the Town of Vail, retards the provision of housing accommodations, constitutes an economic and social liability and is a menace to the public health, safety, morals and welfare of the Town of Vail. 2.2 Projects The Plan Area is appropriate for one or more urban renewal projects and other undertakings of the VRA as authorized by the Urban Renewal Law. 2.3 Planning Approval A general plan for the Town of Vail, known as the Vail Comprehensive Plan, has been adopted by the Town Council. In addition, the Lionshead area is the subject of the Lionshead Redevelopment Master Plan which is the Town's official planning document for guiding the redevelopment of the Lionshead area and is a part of the Vail Comprehensive Plan. This Plan has been submitted to the Planning and Environmental Commission of the Town of Vail for review and recommendations as to its conformity with the Vail Comprehensive Plan and the Lionshead Master Plan. The Planning and Environmental Commission met on February 23, 2004 and has submitted its written recommendations via a staff memorandum to the Town Council that the Lionshead Public Facilities Development Plan is in conformity with the Vail Comprehensive Plan. Consultation This Plan has been submitted to the Board of County Commissioners of Eagle County as required by the Urban Renewal Law. The Eagle County School District has been advised of this Plan and has been given an opportunity to provide comments. 2.4 Public Hearing The Town Council of the Town of Vail has held a public hearing to consider this Plan after public notice thereof in compliance with the Urban Renewal Law in the Vail Daily, describing the time, date, and purpose of the public hearing, identifying the Plan Area and outlining the general scope of the projects being considered for implementation pursuant to this Plan. Pursuant to C.R.S. §31-25-107(4)(c), notice of the public hearing was provided to owners, residents, and business owners in the Plan Area at their last known address at least 30 days before the date of the public hearing. MUR158179\432486.01 3 2.5 Boundaries of the Plan Area The boundaries of the Plan Area shall be as set forth in Figure 1 attached hereto. The Town Council finds that the boundaries of the Plan Area have been drawn as narrowly as feasible to accomplish the planning and development objectives of this Plan. 2.6 Other Findings 2.6.1 One or more of the projects will require the demolition and clearance, subject to other restrictions, of certain public improvements within the Plan Area as provided in this Plan. Such actions may be necessary to eliminate unsafe conditions, eliminate obsolete and other uses detrimental to the public welfare, and otherwise remove and prevent the spread of deterioration. 2.6.2 In order to eliminate or reduce the qualifying conditions currently existing within the Plan Area, as well as those qualifying conditions which may be reasonably anticipated to develop within the Plan Area in the absence of public action, it is the intent of the Town Council in adopting this Plan that VRA exercise all powers authorized to be exercised by VRA under the Urban Renewal Law and which are necessary, convenient or appropriate to accomplish the objectives of this Plan. It is the intent of this Plan that VRA shall exercise all such powers as may now be possessed or hereafter granted to URA for the elimination of qualifying conditions within the Plan Area. 2.6.3 Many properties in the Plan Area are subject to restrictive covenant provisions from previous subdivisions of property in Vail and Lionshead. In many cases, the covenant provisions conflict with one another and in some cases have been ignored by existing development. These restrictive covenants create an impediment to the redevelopment of properties within the Plan Area, particularly the financing of improvements which are key to the .redevelopment of the Plan Area. VRA is authorized to use the power of eminent domain, with the consultation and concurrence of the owner of the underlying fee interest, to eliminate restrictive covenant provisions and other conditions of title which prevent redevelopment of properties within the Plan Area. 2.6.4 If it becomes necessary for individuals, families or businesses to relocate as a result of the implementation of this Plan, a feasible method exists for the relocation of individuals, families, and business concerns that may be displaced, insuring that decent, safe and sanitary dwelling accommodations and business locations can be made available. 2.6.5 The powers conferred by the Urban Renewal Law are for public uses and purposes for which public money may be expended and the police powers exercised, and this Plan is in the public interest and necessity, such finding being a matter of legislative determination by the Town Council. MUR\58179\432486.01 4 2.6.6 VRA may, in its discretion, issue bonds, including bonds or other obligations, to the extent permitted by law. 3. DESCRIPTION OF PLAN OBJECTIVES This Plan is an important tool to address the problems confronting the Lionshead area. The Plan helps to further the goals for the area previously outlined in the Lionshead Redevelopment Master Plan. The objectives for the Plan include the following: o Create a sense of place and an improved aesthetic character for Lionshead for both residents and guests. o Renovate or redevelop the deteriorated and/or outdated residential and commercial buildings and provide enhanced amenities. o Enhance the aesthetic appearance of the area to make it more appealing. © .Improve pedestrian, bicycle, mass transit and auto accessibility and circulation. o Eliminate impediments to the redevelopment of key facilities with the Plan Area. o Upgrade and restore public infrastructure including transportation facilities, parking, sidewalks and streetscapes. 4. PLAN IiViPLEfV1ENTATION In order to accomplish the objectives of this Plan and to fully implement this Plan, VRA shall be authorized to undertake the following activities: 4.1 Redevelopment and Rehabilitation Actions Redevelopment and rehabilitation actions within the Plan Area may include such undertakings and activities as are in accordance with this Plan, the Lionshead Master Plan, and the Urban Renewal Law, including without limitation: demolition and removal of public buildings and improvements as set forth herein; installation, construction and reconstruction of public improvements as set forth herein; elimination of unhealthful, unsanitary or unsafe conditions; elimination of obsolete or other uses detrimental to the public welfare; and other actions to remove or to prevent the spread of deterioration. VRA is authorized to negotiate and enter into agreements with landowners, developers, and investors regarding appropriate projects throughout the Plan Area. 4.2 Property Acquisition The principal purpose of this Plan is the rehabilitation and enhancement of public infrastructure in the Plan Area and the support of new private investment occurring on private property. Restrictive covenants and other conditions of title intertere with new private investment. The power of eminent domain as authorized by the Urban Renewal Law may be utilized as VRA determines necessary to eliminate and remove restrictive MiJR\58179\432486.01 5 covenants and other conditions of title which interfere with new private investment, with the consultation and concurrence of the owner of underlying fee interest. 4.3 Relocation Assistance and Payments In the event it is necessary to relocate or displace any business or other commercial establishments as a result of any property acquisition, VRA may adopt relocation policies for payment of relocation expenses. Such expenses may include moving expenses, actual direct losses of property for business concerns, and goodwill and lost profits that are reasonably related to relocation of the business, resulting from its displacement for which reimbursement or compensation is not otherwise made. 4.4 Public Improvements and Facilities VRA may undertake certain actions which would make the Plan Area more attractive for private investment by providing .public improvements consistent with the Lionshead Master Plan. These improvements include street and traffic improvements, streetscape improvements, a transportation center, landscaping, park and recreation facilities, utility improvements, open space acquisition, stormwater improvements, public art projects, and other similar improvements necessary to carry out the objectives of the Lionshead Master Plan. 4.5 Redevelopment Agreements VRA is authorized to enter into one or more Redevelopment Agreements with developer(s) and such other entities as are determined by VRA to be necessary or desirable by VRA to carry out the purposes of this Plan. Such Redevelopment Agreements may contain such terms and provisions as shall be deemed necessary or appropriate by VRA for the purpose of undertaking the activities contemplated by this Plan or the Urban Renewal Law, and may further provide for such undertakings by VRA, including financial assistance, as may be necessary for the achievement of the objectives of this Plan or as may otherwise be authorized by the Urban Renewal Law. 4.6 Interagency Cooperation VRA rrlay enter into one or more Cooperation Agreements with the Town of Vail or other public bodies pursuant to the Urban Renewal Law. Cooperation Agreements may providES, without limitation, for financing, for construction of public improvements, for administration, for technical assistance and for other purposes. 4.7 Advisory Committee VRA shall establish an advisory committee of Lionshead residential and commercial property owners to advise the VRA on matters related to the implementation of the Plan. The composition of the committee shall be determined by the VRA. MUR\58179\432486.01 6 5. PROJECT FINANCING 5.1 Participating Interest in Projects VRA may require a participating interest in private development projects for which it provides financial assistance. Public assistance is frequently needed for redevelopment projects in order to fill the gap between traditional equity and debt financing and the additional costs of a redevelopment project. In the event the project generates revenues at or greater than market return, the public should share in the success of the project. The terms of the participating interest will be specified in the Redevelopment Agreement at a level and on terms appropriate for each project. 6. INIODIFICATIONS TO THIS PLAN This Plan may be amended or modified pursuant to provision of the Urban Renewal Law as provided in § 31-25-107, C.R.S. .Modifications to this Plan will require appropriate notification in accordance with the Urban Renewal Law, including submission to the Board of County Commissioners of Eagle County and written notice provided to all property owners, residents, and owners of businesses in the Plan Area not less than 30 days prior to the consideration of a substantial modification in accordance with C.R.S. 31-25-107 (4)(c). F:\Users\cdev\RUSS\Projects\Lionshead\TIF\TIF Legal Docs\Lionshead\PublicFacilitiesPLanNOTIF316.doc MUR\58179\432486.01 Figure 1-Plan Area vbs. MUR\58179\432486.01 Attachment ~ ~~, , ~~.: -, ~~: REINVESTMENT STUDY ~~L~1ZU,~1RY 2U{~4 prepared by l~ 1 ~,. 1225 17th Street, Suite 200 Denver, Colorado 80202 303.293.8080 Lionshead Reinvestment Table of Contents 2004 1.0 REIN!/ESTI~iENT STUDY PURPOSE ................................................................1 2.0 STUDY ARE,4 I_OCATION .................................................................................1 3.0 STUDY ARE~- DEFINITION ...............................................................................3 4.0 STUDY,4REA DESCRIPTION ........................................•..................................5 5.0 COLORADO URI3AN RENElIilAL I_A~VV ...........................................................11 6.0 STUDY I~IETHODOLOGY ......~ .................................................... ......................13 7.0 DETERNiINATBON OF CONDITIONS WITHIN THE STUDY AREA .................14 8.0 SUI~IIViARY OF FINDINGS ...............................................................................18 Table of Figures Figure 1: Study Area General Location Map ..............................................................2 Figure 2: Study Area Map ..........................................................................................4 Figure 3: Existing Land Use Map ...............................................................................8 Figure 4: Existing Zoning Map ....................................................................................9 Figure 5: Existing Property Ownership Map ...............:.............................................10 Lionshead Reinvestment Study February 2004 1.0 REINVESTMENT STUDY PURPOSE This document is the completion of a study initiated in August 2000 to determine whether the Lionshead Reinvestment Study Area (the "Study Area") meets the criteria for tax increment financing within the meaning of Colorado Urban Renewal Law, and whether the Study ArE:a should be recommended far such urban renewal efforts as the Town of Vail may deem appropriate to prevent further deterioration of the Lionshead area. 2.0 STUDY AREA LOCATION The Town of Vail is located in north central Colorado, approximately 100 miles west of the City and (:ounty of Denver. It is situated along the I-70 corridor approximately 25 miles west of the Continental Divide. The Base elevation of Vail is 8,120 feet, and the peak elevation is 11,455 feet. The Study Area location is situated towards the western side of the Town of Vail, south of I-70, in an area generally known as the Lionshead area. The exact Study Area boundaries are identified in the next section. See Figure 1, Study Area General Location Map. ~.::~ ~ - 1 Lionshead Reinvestment Study February 2004 3.0 STUDY AREA DEFINITION The Lionshead Reinvestment Study Area consists of those parcels generally bounded on the north by I-70, on the south by Gore Creek, on the east by the eastern parcel boundaries for Vail International, the Dobson Ice Arena, and the Town of Vail Library, and on the west by the point of convergence of the I-70 and South Frontage Road West rights-of-way. See Figure 2, Study Area Map, for the specific boundaries of the Study Area. 3 50U' D^ 500 %~ Lionshead Reinvestment Study February 2004 4.0 STUDY AREA DESCRIPTION Unlike many other Colorado mountain communities which began as a base camp for mineral extraction, the Town of Vail was developed in the early 1960s as a destination winter re:>ort. Its population in 2000 per the U.S. Census Bureau was 4,531 for year-round residents. The town has expanded to the east, west and north of its original boundaries. The Stuciy Area is located in an area generally known as Lionshead Village and is approximately 73 acres in size, excluding roadway right-of-way. The Vail ski resort is operated by a private entity, Vail Resorts, Inc. The general opening date of the ski slopes is mid to late November through late April, when enough snow is present to support skiing and other winter outdoor activities. Skiing facilities in Vail include 4,644 skiable acres, 380 snowmaking acres, 174 skiing runs, and 33 lifts including one gondola. The number of skier visits to Vail was approximately 1.5 million for ski season 2001/200.2 by Colorado Ski Country USA. Summer ;and fall off-season activities occurring in and around Vail include hiking, bicycling, camping, golfing, fishing, and horseback riding, along with other outdoor events such as concerts and rodeos. However, visitation during the summer and fall is not significant when compared to numbers for the winter peak season. As a result, some retail establishments are closed during these off-peak seasons. Existing ILand Uses A variety of land uses occur within the Study Area. These land uses include mixed use, lodging/condominiums, retail/commercial, service station, community facilities (ice arena and library), open space, parking, and public/utility. Of these, the dominant land uses within the Study Area are mixed use and lodging/condominiums. See Figure 3 for the Study Area Existing Land Use Map. Existing Zoning The Study Area is comprised of 8 zoning districts. These districts are labeled as follows: High Density Multiple Family (HDMF) -This zone designation permits lodges, including accessory eating, drinking, recreational or retail establishments. located within the principal use and not occupying more than 10% of the total GRFA of the main structure or structures on the site; additional accessory dining areas may be located on an outdoor deck, porch or terrace. The maximum density permitted under this zone is 25 dwelling units per acre of buildable site area. Lionshead Mixed Use 1 (LHMU-1) -This zone designation has three different permitted uses pertaining to floor level. For the basement or garden level permitted uses include banks, commercial ski storage, eating and drinking establishments, personal services 5 Lionshead Reinvestment Study February 2004 and repair shops, professional offices, lockers and storage, recreation facilities, retail establishments, skier ticketing/schools/services, daycare, travel agencies and any additional uses deemed similar. The first floor or street level permitted uses include banks, eating and drinking establishments, recreation facilities, retail establishments, skier ticketing/schools/services, daycare, travel agencies and other similar uses. Uses permitted on all floors include land uses such as banks, conference facilities, eating and drinking establishments, liquor stores, personal services, professional offices, radio and TV stores and repair shops, recreation facilities, retail establishments, skier servicing facilities, theaters, time-share units and additional uses determined to be similar. The maximum density ,permitted is up to a 33% increase in the existing number of dwelling units on a property or 35 dwelling units per acre, whichever is greater. ° Lionshead Mixed Use 2 (LHMU -2) -This zone allows similar uses to the LHMU-1. For all levels of a building or outside buildings, the allowed uses are the same as those identified for LHMU-1, but also include vehicle maintenance and warehousing. The density restrictions are the same as those defined for the LHMU-1. Arterial Business District (ABD) -Permitted uses in this zone include eating and drinking establishments, personal service and repair shops, retail/office businesses, and other uses determined to be similar to permitted uses. The total density permitted is 25 dwelling units per acre, with a limit of not more than 60% of a buildable site developed. o General Use (GU) -Under this zone designation passive outdoor recreation areas, open space, pedestrian and bike paths are the permitted uses. Other various public and quasi-public conditional land uses are permitted under this zone designation. Development standards are prescribed by the Planning and Environmental Commission. Agricultural and Open Space (A) -The permitted use under this zone includes plant and tree nurseries, and raising of field, row and tree crops, public parks, recreation areas, open spaces and single-family residential dwellings. Other various conditional semi- public uses are also permitted. The maximum density permitted is one dwelling unit per 35 acres. ° Natural Area Preservation (NAP) -The Natural Area Preservation District is intended to ensure that designated lands remain in their natural state, including reclaimed areas, by protecting such areas from development and preserving open space. The Natural Area Preservation District includes lands having valuable wildlife habitat, exceptional aesthetic or flood control value, wetlands, riparian areas and areas with significant environmental constraints. Special Development District (SDD) -The purpose of the special development district is to encourage flexibility and creativity in the development of land in order to promote its most appropriate use; to improve the design character and quality of the new development with the town; to facilitate the adequate and economical provision of streets and utilities; to preserve the natural and scenic features of open space areas; and to further the overall goals of the community as stated in the Vail comprehensive plan. See Figure 4 for the Study Area Existing Zoning Map. 6 Lionshead Reinvestment Property Identification and Ownership 2004 The property ownership in the Study Area is predominantly private, with the majority of parcels owned by either Vail Resorts, Inc., other private property owners, or in joint ownership by Vail Resorts, Inc. and another private entity. The remaining parcels are owned by the Town of Vail, and consist primarily of the Lionshead Parking Structure, the Dobson Ic;e Arena, the Town of Vail Library, and Open Space parcels along Gore Creek. See Figure 5 for the Study Area Existing Property Ownership Map. 7 ~~ ~;~ - land Use_ O . Comrriumry. PSrluue s Or~ ~'0 oe h;Spaca "'I Parking Pu':":ft1lilllY Maee Use~(relall; resiauran); f°`~ ~oRlce; loepinq, a cOntlorniniums). 5cale> 1"= 500` :500 ~ - ~ ~ 0 ~ ;500 .Feet [_ ~_ioool6o'acu'eoml~iums ;4s~ .RelaiUCOinmeicial `,~~Senlte $blion O _RI4~I of W.ay ~: Figure Exisfing Cand.Usf .... ': ~9r,:1 Rrinrnrunnnl Ytin Ar~r ~. .... .. .500 0 500 ~PeeF ~ ~ -- ~Yeil Resorts, tnc: ~. Privere~Orinaisfiip A~Com¢inetiun~of:Vail FZ'esoits.:lnc. :•::: '. ~2n~i Friv'ate.Ownership" Scale:; ,1"~='500' X500; . .....__ . 0:... .. X500: ~~feeF Figure 5 Existing`Property Ownership Map ":!<,nv: Lionshead Reinvestment Study February 2004 5.0 COLORADO URBAN RENEWAL LAW A community's built environment-its public assets in the form of streets, sidewalks, utilities and facilities, and its private assets in the form of residences, businesses, and institutions- has afinite lifespan. The ongoing effects of time, use, growth, changing economies, and the environment require the community to be continually reinvesting in and improving its public and private infrastructure. This is the case in a community like Vail, where the Town's original public infrastructure is showing the effects of decades of service. However, before remedial action through the use of tools such as tax increment financing can be taken by a public actency, Colorado Urban Renewal Law requires a finding by the appropriate governing body that a specific area (such as the Study Area) has sufficient evidence of deterioration, which the Colorado Urban Renewal Law characterizes as "blight." The determination that an area meets the criteria of the Colorado Urban Renewal Law is a cumulative conclusion attributable to the presence of several physical, environmental, and social factors. Indeed, blight is attributable to a multiplicity of conditions, which, in combination, tend to accelerate the phenomenon of deterioration of an area. For purposes of the study, the definition of a blighted area is premised upon the definition articulated in the Urban Renewal Law, as follows: "Blighted area" means an area that, in its present condition and use and, by reason of the presence of at least four of the following factors, substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare: a. Slum, deteriorated, or deteriorating structures; b. Predominance of defective or inadequate street layout; c. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; d. Unsanitary or unsafe conditions; e. DE;terioration of site or other improvements; f. Unusual topography; g. DE;fective or unusual conditions of title rendering the title non-marketable; h. The existence of conditions that endanger life or property by fire and other causes; i. Buildings that are unsafe or unhealthy for persons to live or work in because of building code violations, dilapidations, deterioration, defective design, physical construction, or faulty or inadequate facilities; j. Environmental contamination of buildings or property; or k. Inadequate public improvements or utilities. Several principles have been developed by Colorado courts to guide the determination of whether an area meets the criteria under the Urban Renewal Law. First, the absence of widespread violation of building and health codes does not, by itself, preclude a finding of blight. The definition of "blighted area contained in [the Urban Renewal Law] is broad and encompasses not only those areas containing properties so dilapidated as to justify condemnation as nuisances, but also envisions the prevention of deterioration." - 11 Lionshead Reinvestment Study February 2004 Second, the presence of well maintained buildings does not defeat a determination that an area constitutes a blighted area. A determination of blight is based upon an area "taken as a whole," and not on abuilding-by-building basis. Third, one of the purposes of the Urban Renewal Law is to prevent future decline of an area. Therefore, an area need not evidence widespread dilapidation to qualify as blighted so long as factors which lead to further decline are present. Fourth, an authority's "determination as to whether an area is blighted...is a legislative question and the scope of review by the judiciary is restricted." A court's role in reviewing such a blight determination is simply to independently verify if the conclusion is based upon factual evidence and consistent with the statutory definition. URS was retained by the Town of Vail to perform an independent survey of the Study Area in August 2000, but did not complete the study at that time at the request of the Town. In November 2002, URS was asked to resurvey and complete this study. In February 2004, a minor adjustment was made to the Study Area boundary to include a parcel owned by the Town. Based upon what is observed in the Study Area, this report makes a recommendation as to whether the Study Area meets the criteria in the Colorado Urban Renewal Law. The actual determination itself remains the responsibility of the Town's legislative body. - 12 Lionshead Reinvestment 6.0 STUDY METHODOLOGY 2004 An important objective of this Reinvestment Study is to obtain and evaluate data, where possible, on a wide range of physical conditions that are present in the Study Area. Data about they Study Area were collected from various public agencies and supplemented by a careful field survey of the Study Area. This Reinvestment Study included the following tasks: • Task 1: Determination of Project Issues • Task 2: Base Mapping • Task 3: Data Collection and Research . • Task 4: Field Survey and Verification • Task 5: Documentation and Findings • Task 6: Presentation of Reinvestment Study Appendix A contains a map showing the location of photographs that were taken of a variety of site conditions and public improvements within the Study Area. Appendix B provides the photographs themselves. - 13 Lionshead Reinvestment Study February 2004 7.0 DETERNiIN~4TION OF CON®BTIONS VilITFiIN TFIE STIJ®Y RRE~- The overall findings of the Town of Vail Reinvestment Study Update are presented in this section. The analysis addresses general building and site conditions, and the condition of public improvements throughout the Study Area to determine whether the area could meet the criteria outlined in the Colorado Urban Renewal Law. Presence of Deteriorated or Deteriorating Structures and Sites Overall, degrees of site or structural deterioration are identified below: Standard, Sound These buildings or sites contained no or relatively minor defects, were adequately maintained and required no treatment outside of normal ongoing maintenance. Substandard, Minor Deficiencies These buildings or sites contained deficiencies which required minor/major repairs to secondary structural elements such as fascia/soffits, gutter/downspouts, exterior finishes, windows, doors, stairwells, and fire escapes. Sites with pavement deterioration of 25-75% of the site were considered minor deficiencies. These type of deficiencies might possibly be corrected through normal maintenance, however, replacement or rebuilding or components by skilled people in the building trades is recommended. Substandard Major Deficiencies These buildings or sites contained major defects over a widespread area and would be difficult to correct through normal maintenance. These buildings would require replacement or rebuilding of components by people skilled in the building trades. Sites with surface pavement deterioration greater than 75% of the site area were considered major deficiencies. The many structures within Study Area were surveyed for their degree of deterioration based on the three condition categories defined above. Most structures were found to be in the "Standard, Sound" condition, with a few that could be classified into the "Substandard, Minor Deficiencies" category. Those structures that could be classified into the "Substandard, Minor Deficiencies" category typically contained superficial exterior deficiencies such as the need for a fresh coat of paint on wood siding, balcony railings, and the like. These minor deficiencies are also typically the result of the often harsh winter conditions found in Vail's mountain setting, which can be, and usually are, remedied through periodic maintenance. As a result of the type and scale of the minor deficiencies identified in the many publicly and privately owned structures in the Study Area, it was determined that those deficiencies were insufficient to qualify as a finding of blight under the "Presence of Deteriorated or Deteriorating Structures and Sites" criterion. - 14 Lionshead (,'einvestment Study February 2004 Faulty Street Layout Faulty street layout is common in the Study Area. Proper street access is not provided to several parcels. For several parcels located in the Study Area, they cannot be accessed without passing through another parcel. In addition, lack of adequate turning lanes from frontage roads to lodgings backs up traffic. Town buses sometimes have difficulty making left turns because of the inadequate street gradients, and the volume of traffic that competes with busE:s for breaks in the frontage road traffic. As a result of faulty street layout in Lionshead Village, vehicular traffic heading towards lodgings poses a significant conflict with the large volume of pedestrian traffic crossing from parking. See Photos 12 and 18 in Appendix B for examples of this condition. Faulty Lot Layout Faulty lot layout occurs in the Study Area. In one instance, motorists accessing a particular lodge need to pass through another property in order to get to the desired lodge's entry and parking. Another example of faulty lot layout pertains to lot shape. There exists no standard lot size or shape within the Study Area, as can be observed on the attached Study Area Map exhibit. Within the Study Area there are at least three lots that are a shape that renders them inadequate or inaccessible. See Photos 12 and 18 in Appendix B for examples of this condition. Unsanitairy or Unsafe Conditions that Endanger Life or Property Numerous unsafe conditions for pedestrians exist in the Study Area. In some areas the absence of sidewalks and crosswalks causes pedestrians to cross streets anywhere, creating a very dangerous conflict with private vehicles, delivery vehicles, and the regional transit bu:;es. Pathways pedestrians use to get to the ski yard are narrow and icy during the winter. Overflow parking on streets during the peak season creates a dangerous conflict between through-vehicle traffic and pedestrians. Pedestrian access to the mall area is unmarked and the points of entry are sometimes unclear. Safe crossings are made more difficult by winter road conditions and traffic congestion. In addition, pedestrians are often wearing si<i boots and carrying skis, which affects pedestrian movement and flow. Vehicular traffic heading towards lodgings poses a significant conflict with the large volume of pedestrian traffic crossing from parking structures towards the mall area. Lack of pedestrian crossings to residential properties adds to unsafe conditions for pedestrians. Inappropriate drop off sites for skiers at the western end of the parking structure located off of I-70, which is not designated for this purpose, create unsafe conditions for pedestrians, as automobiles confront pedestrians crossing from the parking structure. Winter snow makes for icy conditions in addition to limiting space for vehicle passage. Snow cats and snowmobiles must cross the frontage road to access the mountain. As a result, conflicts with traffic on the frontage lodgings slows traffic and causes congestion winter due to poor gradients. See Photos 6 examples of this condition. road occurs. Lack of directional signage to . Some parking lots are sheets~of ice in the 8, 9, 10, 11, 14 and 17 in Appendix B for 15 Lionshead Reinvestment Study February 2004 Deterioration of Site or Other Improvements The most evident sign of deterioration of public improvements is the erosion of concrete in Lionshead Village due to the freeze/thaw cycle that occurs between winter and spring. In addition, snow cats are rough on roadways and walkways and contribute to deterioration of paved surfaces. Concrete erosion can be found often on stairways. In addition, many streets in Lionshead Village are characterized by deterioration of concrete curbs, gutters and sidewalks. Other forms of deterioration include the poor quality of retaining walls and site furniture in the mall area. See Photos 1, 2, 3, 4, 5, 7 and 13 in Appendix B for examples of this condition. Defective or Unusual Conditions of Title Rendering the Title Non-marketable Throughout the Study Areas are parcels containing obsolete and restrictive covenants. These covenants impose certain development requirements or restrictions on those parcels that prohibit their redevelopment to a higher or different use. In other cases, these covenants contradict with the existing development. As a result, these titles become difficult to market, create a barrier in obtaining financing by their owners, and inhibit the redevelopment of the parcels to the detriment of both the property owners and the Town of Vail. Unusual Topography Unusual topography is present in the Study Area. It has associated safety issues in that the steep terrain in some areas causes icy spots during the winter, which contribute to vehicle and/or pedestrian accidents. Additionally, the steep terrain contributes to the unusual shape of many parcels, the inefficient arrangement of many streets and driveways, and the orientation and configuration of structures on their parcels. The Existence of Conditions that Endanger Life or Property by Fire and Other Causes The example of the "existence of conditions that endanger life or property by fire and other causes" that is most evident in the Study Area is the difficulty of access by fire and emergency vehicles to certain sites and structures. In some locations, ground level retail extensions make the vertical mass of buildings inaccessible to fire protection (fire department ladders cannot reach buildings). In other instances, residential buildings do not provide the 150 foot frontage required for fire/emergency access. Other examples of limited emergency access include delivery trucks that park in the fire lanes and the mall's vehicle access routes have many dead ends and fire trucks are not provided with the appropriate amount of space for their turning radii. Additionally, winter snow creates icy roadways in addition to limiting space for adequate fire truck/emergency vehicle passage in some areas. This difficulty of access by fire and emergency vehicles to certain. sites and structures is primarily the result of three other factors already discussed: Faulty lot layout, faulty street layout, and unusual topography. The mountainous terrain that exists within the Study Area - 16 Lionshead Reinvestment Study February 2004 creates a situation that results in parcels and streets that are less than optimally arranged. Since Vail's native mountain terrain is not only at the heart of its existence as a resort community, but a characteristic of the town that will never change, certain difficulties "come with the territory." As a result, while improving fire and emergency access is a ongoing effort by the Town, it was determined that this factor alone is insufficient to qualify as a finding of blight under the "existence of conditions that endanger life or property by fire and other causes" criterion. Buildings That Are Unsafe or Unhealthy for Persons to Live or Work In Because of Building Code Violations, Dilapidations, Deterioration, Defective Design, Physical Construction, or Faulty or Inadequate Facilities Periodically, building code violations will exist in all communities as a part of the ever- changing nature of the built environment. However, it is reasonable to expect that before a finding under this criterion can be established, it would be necessary to document a sufficient quantity of violations on one or several properties or an abundance of violations under one or several codes throughout the Study Area. Violations to this degree were not identified within the Study Area; therefore, it was determined that there is insufficient evidence for a finding under this criterion. Environmental Conditions Environmental contamination has occurred within the Study Area. Anecdotal evidence suggests that there may still be a fuel tank leak at one of the service stations within the Study Area, although this issue has been deemed resolved in court. Unpaved parking lots (gravel) in the Study Area cause soil contamination from cars leaking gasoline, automobile oil, and anti-freeze. Stormwater running off from paved surfaces flows into creeks, sends pollutants into streams and impacts groundwater sources as well. See Photo 15 in Appendix B for an example of this condition. Inadequate Public Improvements or Utilities There arE; examples of inadequate public improvements found in the Study Area. In the eastern edge of the Study Area underground fuel tanks in some cases are buried only 4 feet under ground due to a high water table. In some cases tanks have required strapping down to avoid floating. Snow cats tear up roads, concrete sidewalks, curbs and gutters, and create noise and visual pollution. The Vail Sanitation Plant was almost at capacity in 1998 according to the Lionshead Redevelopment Master Plan. Overhead utility lines are present in the Study Area. Stormwater runoff from paved surfaces that carries pollutants is discharged into streams and contributes to water quality degradation. Additionally, several streets are lacking in curbs and gutters and sidewalks. See Photos 16 and 19 in Appendix B for exarples of this condition. - 17 Lionshead Reinvestment Study February 2004 s.o su~n~n~,~v orr FAN®i~IGs The conclusion of this study is based on the following summaries of the eight criteria described in the previous section in which conditions were found in the Study Area that meet the criteria identified in the Colorado Urban Renewal Law: 1. Faulty Street Layout. Within the Study Area, there is the presence of faulty street layout that does not provide adequate street access for motorists, pedestrians and/or emergency vehicles. Turning lanes are needed to ensure adequate traffic flow at certain intersections. 2. Faulty Lot Layout.. There is the presence of faulty lot layout in relation to size, adequacy, accessibility and usefulness in the commercial areas of the Study Area. These include: inefficient and unworkable layout of parking and loading areas in relation to commercial and residential structures, which creates poor and dangerous traffic circulation. 3. Unsanitary or Unsafe Conditions; Conditions that Endanger Life or Property. There is the presence of unsanitary or unsafe conditions within the Study Area. These primarily consist of unsafe and hazardous conditions for pedestrians and motorists. 4. Deterioration of Site or Improvements. There is the presence of deterioration of site and other improvements within the Study Area. In the commercial areas, this includes the deterioration of parking areas and deterioration of street curb and gutter surfaces. Concrete erosion is a common occurrence in the mall area. 5. Defective or Unusual Conditions of Title Rendering the Title Non-marketable. There are multiple occurrences within the Study Area of parcels containing titles with restrictive covenants that make those titles non-marketable and, consequently, prevent the redevelopment or improvement of those properties. 6. Unusual topography. There is the presence of conditions of unusual topography in the Study Area. Steep slopes contribute to icy winter conditions. Retaining wall failure is occurring in the Study Area. 7. Environmental Contamination. There is the presence of environmental contamination in the Study Area. These conditions are primarily related to unpaved parking areas, and stormwater runoff from paved surfaces. 8. Inadequate Public Improvements, Utilities. There is the presence. of inadequate public improvements and utilities in the Study Area, including: deteriorating or non-existent street pavement, curb and gutter, overhead utilities, and inadequate facilities for stormwater runoff. It is the conclusion and recommendation of this study that the Study Area, in its present condition and use, as of February 2004, meets eight of the criteria in Colorado Revised - 18 Lionshead F',einvestment Study February 2004 Statute § 31-25-103(2), (exceeding the minimum of four of the eleven factors required). By reason o~f the presence of these eight factors identified in Section 103(2) of the Urban Renewal Law and discussed above, the Study Area impairs or arrests the sound growth of the Town of Vail, retards the provision of housing accommodations, constitutes an economic or social liability, and is a threat to the public health, safety, morals, or welfare. These factors indicate problems with public infrastructure and those private site improvements which arE; accessible to the public rather than deterioration of private structures; however, uncorrected deficiencies identified in this Report could lead to a decline in many of the private structures in the Study Area. r ~ ~ ~°' 19 ~~~ _ i Lionshead Reinvestment Study February 2004 Appendix ~-: Phofo Loca4ion iViap Numbers shown on this map correspond to the Photo Numbers in Appendix B and represent the general location where the photograph was taken. ~ =Non-Location-Specific Lionshead h'einvestment Study February 2004 Appendix B: Photograph Survey of Conditions that Meet Colorado Urban Renewal Law Criteria Lionshead Reinvestment February 2004 Photo 1 Site maintenance problem with deteriorated brick pavers. Photo 2 This is a photograph of a base of what used to be a street light. See metal nails exposed at the top. ~~-I, ,`` _ Lionshead Reinvestment Study February 2004 Photo 3 C~eteriorated stairs and poor drainage. Photo 4 Poor drainage and curb deterioration. ~,, ~- =I •-~, m '` ~~ Lionshead Reinvestment .e ri ~~'~~' -~,~±- ~ * !~,, -' - ~. 5 .~ _e. r _ ~ ~ 1 ~ ~ f ~,, ~- s. ~ - _ _. _: ~ ~, - . . ~~ - - o _ -. ~~ ~?, - 2004 Photo 5 This is a photograph of handrail posts that have rusted through with concrete erosion on a mall stairway (concrete erosion is common and results from the freeze/thaw cycle that occurs along with snow cats that chip away ice and snow -and concrete - to clear walkways and roadways). Photo 6 Evidence of unscreened trash found in the Study Area. Lionshead Reinvestment Study February 2004 Photo 7 Evidence of settling sidewalks cracking in the Study Area. -- -- _ _ __...'j . , ~~ __.: _ ..~__ - - ~:~' .~ Photo 8 Conflicts between delivery vehicles, motorists, and pedestrians often occurs at this site, and are exacerbated by the presence of snow and ice during the peak season. ~: ~. ~ o ~ ~_. ~ - Lionshead Reinvestment Study February 2004 aL 1 -I f, ~-~ l f j ~ Y_~~ ~_.! -~. - ~, N 1 - T.5_t f~~ ~ . {.I ~C J i ' ti ~ ~ ~ ~ r ~ ~' µ'~'r - ~ ~_ -f.l 1 . -;_ ~ i yr { :~y ~ _ ~ ~ ~ t &_r . _ v ~ __ ~ ~ ~ - 1 f 1 .,~ ~ r ~ ~ . " _~ ~ ~ i w_ j - ' - ~ .. ~ . _ ..... ~ l r;~ ~1 3 ~ ~ J ~. r Photo 9 Inadequate and unsafe drainage pipe existing in a drive through area. ~~.._ ~.~ _ ~.., r- `~--- . ,,~~~ ' ~ _ ~ f _ - - ____-- __ ~ _ ~:i' i- - ~. r tl_ _y, _. ~~~_ ~ .~._ - Photo 10 Poor drainage and cracked pavement. ,;5' ~'j `` Lionshead Reinvestment Study February 2004 fi_ t. ~ ~ - . ^~ ~~~ ~ _ ~ ~ t f ., ~~~ _ ~ ~, _ ' ~ + ' r ~ r, 'r s _ ~ ,~ ,. I ~' ~ -~s ri ti- , (~ -- ~ 7~ I *~ Y VE -:~w ~m ~~ ~~ F . ~. kA- A _ 1 ~.~-. ) ~ _ c.. ~._ - I °f ~ ~ _... .. Photo 11 Presence of trash, lack of site maintenance, and cracked pavement. Photo 12 1=aulty street and lot layout of these two parcels (parking lot of public utility plant adjacent to a public maintenance facility parcel) requires an easement from the property owners of the right parcel to f>rovide adequate street access to the parcel on the left. .~ ~ .r°~e ~`~`:~' Lionshead Reinvestment Study February 2004 e.._..,t,--------r------ _ _, ---~- - -- `' ~. _ -- ~. . ,~,_ ,~ ~ ..\ -_ ~ ~ i _i ~~ _ '~ r - .. ' ;~ t; -, ~- _; . Photo 13 Deteriorating walls of parking facilities (inside underground lot buckling walls due to hydrostatic pressure build up). Photo 14 This parking deck can not support the weight of a fire truck, which limits access to the building in the event of an emergency. Lionshead F'einvestment Study February 2004 Photo 15 Unpaved parking areas lead to environmental contamination due to fluids leaking from motor vehicles. Photo 16 Steep driveways become troublesome and potentially dangerous during the winter. „~ ~: Lionshead Reinvestment 2004 A.; .~ a H i y. _ ~ S' ~ ' G ~ ~ 3 -- '~ ~ _ - ~z~. _ _ r .fit. ~ ~.~ ~ y 'a -- 1 ~ u~ ~-~iC'~-` C4, ~i ~ ~j i ~ i.. ~ ~- I --sa+wr-n ~C '~ ~ ~Y ~ ,16y1 ~ . "~ ~ ~ • ' ~' ~ :~. gy'p''-~ ~ ..~L` ~'),~' ..~ },,. r c u ~~~* `x; i; 1 =,r r .,~~- 4'y'1`. f -..._ rlY .I.f4i ~.,.{ .~ ~ ,A ~r -~ ~ ~r~~ _~-y~ ~,. F), -:4 '14 ~ _. ~ ~ ~ ~, gyn. ~ ~. /~.~ 1 r ~1 ~ ,-„r ,~ ~ ~~E ~_ Fi~,~ ~~, Photo 17 This turnaround has the potential for many pedestrian and vehicle conflicts that would only be exacerbated by increased visitation and icy conditions during the peak season. r_ r `~. ~ s' _ `',~ ~, Photo 18 Faulty street layout adds to potential pedestrian/vehicle conflicts. Lionshead Reinvestment February 2004 ;.L -it TyK~'Y - a ~ ,~ ~. ;.,m i 1_ _. 4 rr ~_ ~ i v ~ t -~.. t r` ,~ ~. 4 _r~'yy " ~,'~ . _ . . - is ~.+__,x"-~ ,,,_ ir:i-~;` t - --- f y _ _ ~ ~c -~ ,~. ~ T, f - ,,,ar { _~ ~ - ~1 f~~~ ~*i~ r Photo 19 Lack of walkways increases risks for pedestrian and vehicle conflicts. ATTACHMENT 5 PLANNING AND ENVIRONMENTAL COMMISSION PUBLIC MEETING Monday, February 23, 2004 PROJECT ORIENTATION -Community Development Dept. PUBLIC 1IVELCOME 12:00 pm MEMBERS PRESENT John Schofield Erickson Shirley George Lamb Rollie Kjesbo Doug Cahill Gary Hartman Chas Bernhardt MEMBERS ABSENT Site Visits 1. The Ruins - 1000 W. Frontage Road 2. VRD/Vail Gymnastics Facility - 551 N. Frontage Road West Driver: George 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 final review of a proposed amendment to the Town of Vail Official Zoning Map to change the zoning of the West Vail Lodge Properties from Commercial Core 3 (CC3) to High Density Multiple Family (HDMF), located at 2278, 2288, 2298 Chamonix Lane and 2211 North Frontage Road/ Lots 1, 2, 3, and Tract C Vail Das Schone Filing 1 and Inn at West Vail Lot 1, Block A, Vail Das Schone Filing 3, in accordance with Section 12-3-7, Vail Town Code, and setting forth details in regard thereto. Applicant: Vanquish Vail, LLC, represented by Allison Ochs Planner: Matt Gennett MOTION: Cahill SECOND: Kjesbo VOTE: 7-0 TABLED TO MARCH 8, 2004 Matt Gennett stated that in order for this proposal to proceed forward in any form other than that which is proposed, the applicant shall be required to submit a new application to the Community Development Department. The Commission requested that a very direct letter be forwarded to the applicant stating such requirement. 2. A request for a work session to discuss an application for a major amendment to Special Development District #4, Cascade Village, pursuant to Section 12-9A-10, Vail Town Code to allow for the adoption of a Development Plan for the development of a new multiple-family structure, Located at 1000 W. Frontage Rd./Cascade Village, Development Area A, and setting forth details in regard thereto. Applicant: Ramsey Flower and Greg Walton Planner: George Ruther MOTION: Cahill SECOND: Kjesbo VOTE:?-0 TABLED TO MARCH 8, 2004 ^: ... ~~\- - ` ~9 TDW1V OF; PAIL ~ 3. A request for a final review of a conditional use permit, pursuant to section 12-9C-3, Vail Town Code, to allow for a public indoor community facility, located at 551 N. Frontage Road West/Vail Potato Patch, Red Sandstone Elementary School, and setting forth details in regard thereto. Applicant: VRD -Vail Gymnastics Facility, represented by Fritzlen Pierce Architects Planner: Matt Gennett MOTION: Cahill SECOND: Hartman VOTE: 7-0 APPROVIED WITH THREE AMENDED CONDITIONS OF APPROVAL: 1. This conditional use permit approval is contingent upon the applicant receiving Town of Vail design review approval for this proposal. e r~......J, 2. No parking of vehicles associated with the use of the gymnastic facility shall be allowed on the North Frontage Road. Failure to comply with this condition shall be grounds for revocation of the conditional use permit for the gymnastic facility 3. The hiours of operation for the use of the gymnastic facility shall not interfere with school programs, parking, and activities. The terms for the use of the gymnastic facility shall be documented in an adopted Intergovernmental Agreement (IGA) by and between the Eagle County School District, Vail Recreation District, and Town of Vail. Said Agreement shall be in place prior to the issuance of a Certificate of Occupancy for the facility. Matt Gennett made a presentation per the staff memorandum outlining the request. Staff recommended approval of the request with three conditions as outlined in the staff memorandum. The Commission expressed concern with three issues 1) hours of operation and conflicts with the school hours, 2) traffic circulation and parking, and 3) location of bus stop. Greg Moffat, speaking for the applicant, responded to the Commissions concerns. The Commission continued to investigate answers to their expressed concerns. Following discussion on the request, the Commission agreed that amendments to the proposed conditions were required. Upon discussion off the conditions, a motion for approval with amendments to the conditions was made. 4. A request for a recommendation to the Vail Town Council that the Lionshead Public Facilitie~~ Development Plan is consistent with the Vail Comprehensive Plan. The specific description and area for the Lionshead Public Facilities Development Plan are in the Community Development Department. The general description includes that area north of Gore Creek, west of Middle Creek, east of Red Sandstone Creek and south of Interstate 70 in the Town of `Jail Russell Forrest made a presentation to the Commission describing the need for the Plan per the staff memorandum. Staff recommended that the Commission forwards a recommendation of approval of the Plan to the Vail Town Council. Under public comment, Jim Lamont questioned uses of the TIF dollars and inconsistencies between zoning and covenants. Mr. Lamont expressed his support for the use of an urban renewal district to remove such inconsistencies when used to ensure compliance with community goals. The Commission questioned how the. determination was to be made on which covenants are "offending" and in need of removal. Several Commission members express>ed reservations with regard to how the condemnation proceedings. will affect the development future of Lionshead with the main concern being the ability to condemn more "recently" established covenants. The Commission indicated that criteria for removal or considerations for evaluation be established to address which covenants should be eligible for consideration for removal. It was determined that if the remova! of the 2 covenants furthered the goals of the town as documented in the adopted master plans; then removal should be allowed. The process of removal must include a public process for consideration. The Commission recommended that the use of condemnation powers of the Authority shall be limited to the removal of defunct, conflicting and obsolete covenants that inhibit the ability to implement the goals and objectives of the Town's master plan and adopted planning documents. The Commission made motion that: "That upon review of the proposed Lionshead Public Facilities Development Plan, the Planning and Environmental Commission finds that the plan, as proposed, is in conformity with the Town of Vail's comprehensive plan as stated in section VI of this memorandum. The Commission's determination of findings is based upon review of the criteria and the testimony and evidence presented on this application." Applicant: Vail Reinvestment Authority Planner: Russell Forrest. MOTION: Kjesbo SECOND: Lamb VOTE: 6-0-'I(Shirley) 5. A request for a recommendation to the Vail Town Council that the P-38~J Reinvestment Plan is consistent with the Vail Comprehensive Plan located at Lots P3 & J, Block 5A, Vail Village Stn Filing. Russell Forrest made a presentation to the Commission describing the need for the Plan per the staff memorandum. Staff recommended that the Commission forwards a recommendation of approval of the Plan to the Vail Town Council. The Commission discussed both Items 4 and 5 on the agenda concurrently. The PEC found: "That upon review of the proposed P-3 & J Reinvestment Plan, the Planning and Environmental Commission finds that the plan, as proposed, is in conformity with the Town's comprehensive plan as stated in section VI of this memorandum. The Commission's determination of findings is based upon review of the criteria and the testimony and evidence presented on this application:" Applicant: Vail Reinvestment Authority Planner: Russell Forrest MOTION: Kjesbo SECOND: Cahill VOTE: 7-0 6. A request for a recommendation to the Vail Town Council of a major amendment to Special Development District No. 36, Four Seasons Resort, pursuant to Section 12-9A-10, Vail Town Code, to allow for amixed-use hotel; a request for a final review of a conditional use permit, pursuant to Section 12-7A-3, Vail Town Code, to allow for Type III Employee Housing Units and a fractional fee club; and a request for a recommendation to the Vail Town Council of a proposed rezoning of Lots 9A & 9C, Vail Village 2nd Filing from Public Accommodation (PA) zone district to High Density Multiple Family (HDMF) zone district, located at 28 S. Frontage Rd. and 13 Vail Road/Lots 9A& 9C, Vail Village 2nd Filing, and setting forth details in regard thereto. Applicant: Nicollet Island Development Company Inc. Planner: George Ruther MOTION: Cahill SECOND: Kjesbo VOTE: 7-0 TABLED TO MARCH 8, 2004 3 7. A request for a recommendation to the Vail Town Council for the establishment of Special Development District No. 38, Manor Vail Lodge, to allow for the redevelopment of the Manor Vail Lodge, and a request for a conditional use permit to allow for the construction of Type III Employee Housing Units, pursuant to Section 12-6H-3, Vail Town Code, located at 595 Vail Valley Drive/Lots A, B, & C, Vail Village 7th Filing, and setting forth details in regard thereto. Applicant: Manor Vail, represented by Mefick and Associates Planner: Warren Campbell MOTION: Cahill SECOND: Kjesbo TABLED TO MARCH 8, 2004 11. Approval of minutes MOTIOf\I: Cahill SECOND: Hartman 12. Informatoon Update Irwin Variance Appeal 13. Adjournrnent MOTIONI: Kjesbo SECOND: Lamb VOTE: 7-0 VOTE: 7-0 VOTE: 7-0 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 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 Published, FE~bruary 20, 2004 in the Vail Daily. 4 ,~ i . MEMORANDUM TO: Vail Town Council FROM: Community Development Department DATE: March 16, 2004 SUBJECT: A request to approve Resolution No. 12, Series of 2004 which would approve the P-3&J Reinvestment Dian. The plan area is located at P-3 and J, Block 5-A, Vail Village, Fifth Filing (per its subdivision plat recorded November 12, 1965), and portions of public rights-of-way lying between or proximately between those Lots P-3 and J, as those portions have been or are in the process of being collectively re-platted as Lot P-3, Block 5 A Vail Village Fifth Filing, and may further include certain subterranean areas underneath Hanson Ranch Road. Applicant: Vail Reinvestment Authority Planner: Russell Forrest i• SUMMAR~P The Vail Reinvestment Authority is requesting that the Town Council approve the P-3 & J Reinvestment Plan based on the findings in section VI of this memorandum. The purpose of this plan is to facilitate the redevelopment of the approved P-3 & J site by removing or curing covenants that may impede redevelopment. Staff is recommending that the Vail Town Council approve the P-3 & J Reinvestment Plan. ii. ®ESCRiPTiOPI OF THE REQUEST Staff is requesting that the Vail Town Council approve the P-3 & J Reinvestment Plan. This P-3 ~ J Reinvestment Plan has been prepared by the Vail Reinvestment Authority ("VRA") for adoption by the Vail Town Council pursuant to provisions of the Urban Renewal Law of the State of Colorado, Article 25 of Title 31, Colorado Revised Statutes. This Plan is prepared and adopted to satisfy the requirements of § 31-25-107, C.R.S., that an urban renewal plan be adopted by the governing body of the municipality before an urban renewal authority undertakes an urban renewal project. Oii. BACi(GROUN® The Town of Vail has approved Vail Resorts Inc. plans for redevelopment of P 3 ~ J located on Hanson Ranch Road and North of the Christiania Lodge. This site is a component of the Vail Resorts "Front Door" project. The P-3 & J redevelopment site, as approved, will include new parking for adjacent property owners and a public park and open space. As part of the Front Door Project, the inadequate and unsafe existing loading and delivery area on Hansen Ranch Road will be relocated to a much improved underground loading and delivery facility located south of the Lodge Tower on the Front Door site. Certain obsolete restrictive covenants cloud the property title to Lots P-3 & J and prevent financing of the redevelopment proposal. It is necessary to remove these obsolete restrictive covenants in order for the redevelopment to proceed. IV. ROLES OF THE REVIEWING BOARDS The Planning and Environmental Commission is required by state statute to make a recommendation to the Vail Town Council on whether the P-3& J Reinvestment Plan conforms to the Vait Comprehensive Plan. The Town Council is the final decision making authority and will be asked to consider the approval of a resolution to adopt the plan. V. APPLICABLE PLANNING DOCUMENTS The following are applicable provisions in the Vail Village Master Plan which is a component of the Vail Comprehensive Plan. The stated goals of the Vail Village Master Plan are: Goal #1 Encourage high quality redevelopment while preserving the unique architectural scale of the Village in order to sustain its sense of community and identity. Objective 1.,3: Enhance new development and redevelopment through public improvements done by private developers working in cooperation with the Town. 1.3.1 Policy: Public improvements shall be developed with the participation of the private sector working with the Town. Goal #2 To foster a strong tourist industry and promote year-round economic health and viability for the Village and for the community as a whole. Objective 2.1: Recognize the variety of land uses found in the 11 sub-areas throughout the Village and allow for development that is compatible with these established land use patterns Objective 2.4: Encourage the development of a variety of new commercial activity where compatible with existing land uses. Goal #3 To recognize as a top priority the enhancement of .the walking experience throughout the Village. Objective 3.1: Physically improve the existing pedestrian ways by landscaping and other improvements. Objective 3.2: Minimize the amount of vehicular traffic in the Village to the greatest extent possible. Objective 3.4: Develop additional sidewalks, pedestrian-only walkways and accessible green space areas, including pocket parks and stream access. Goal #4 To preserve existing open space areas and expand green space opportunities. Objective 4.1: Improve existing open space areas and create new plazas with greenspaces and pocket parks. Recognize the different roles of each type pf open space in forming the overall fabric of the Village. Objective 4.2 Improve and expand the opportunity for active and_passive recreational activity throughout the Village. Goal #5 Increase and improve the capacity, efficiency and aesthetics of the transportation and circulation system throughout the Village. Objective 5.1: Meet parking demands with public and private parking facilities. Goal #6 To insure the continued improvement of the vital operational elements of the Village. Objective 6.1: Provide service and delivery facilities for existing and new development. Objective 6.2: Provide for the safe and efficient functions of fire, police and public utilities within the context of an aesthetically pleasing resort setting. !/t. EI~B®ING/CRV~'ERBA F®R REVBEWIIVG THE PL~41V ~. PlarBrBUrag ~PD~ E~bIIPOB1Ii1ed1$al d;:Of9'1RDISS6®8'E Based on § 31-25-107, C.R.S. the Planning and Environmental Commission shall determine whether the P-3 & J Reinvestment Plan is in conformity to the Town's Comprehensive Plan. Section V of this memorandum outlines all the goals and policies relevant to the proposed redevelopment of Lots P-3 and J. The proposed rezoning specifically implements the Vail Village Master Plan Sub-Area Policy 7-1 which states that, "development of this site should be restricted to parking and other public purpose uses': 3 According to Section 12-9B-1 of the Zoning Regulations, the purpose of the Parking (P) District is intended to, "to provide sites for private or public unstructured off-street vehicle parking and conditionally to provide for private or public off-street vehicle parking structures and private or public parks and recreational facilities. The Parking District is intended to allow such uses while ensuring adequate light, air, privacy and open space for each valid use in adjacent areas." The proposed development plan is consistent and compatible with the Vail Comprehensive Plan and the Town's development objectives. B. Vail Town Council The Town Council is requested to make the following findings based on C.R.S. 31-25-107: Blight, as defined by C.R.S. §31-25-103(2), is present in the P- 3 & J Urban Renewal Area as documented by the P-3 & J Reinvestment Study prepared by URS Corporation and based on evidence presented at the public hearing. The following blight factors are present in the P-3 & J Urban Renewal Area: Defective or unusual conditions of title rendering the title unmarketable. Restrictive covenants controlling uses on the certain properties and other conditions of title impair the redevelopment of key parcels in the Plan Area • The P-3 & J Renewal Area is a blighted area and is appropriate for an urban renewal project pursuant to Part 1 of Article 25 of Title 31, C.R.S. • The boundaries of the P-3 & J Urban Renewal Area as identified in Figure 1 of the P-3 & J Reinvestment Plan have been drawn as narrowly as feasible to accomplish the planning and development objectives for the P-3 & J Urban Renewal Area. • The P-3 & J Reinvestment Plan conforms to the Vail Comprehensive Plan, which is the general plan for the development of the Town of Vail. • There exist feasible methods for the relocation of individuals and families and business concerns in accommodations or areas suitable for their relocation. o P-3 & J Reinvestment Plan will afford maximum opportunity, consistent with the sound needs of the Town of Vail as a whole, for the rehabilitation or redevelopment of the Town of Vail consistent with the Vail Comprehensive Plan. 4 The acquisition, clearance, rehabilitation, conservation, development or redevelopment of a combination thereof of the P-3 8 J Urban Renewal Area pursuant to the P-3 & J Reinvestment Plan is necessary in the best interests of the public health, safety, morals, and welfare of the citizens of the Town of Vail o The Town of Vail has published the notice of the time, place, and purpose of the public hearing to consider the adoption of the P-3 & J Reinvestment Plan in the Vail Daily in conformance with C.R.S. §31-25-107(3). Town of Vail has provided written notice of the public hearing to consider the adoption of the P-3 & J Reinvestment Plan to property owners, residents, and business owners within the proposed P-3 ~ J Urban Renewal Area at their last known addresses in conformance with C.R.S. §31-25-107(4)(c). !lEO. STAFF REC®AAnAEN®ATi®IV On February 23, 2004, the Planning and Environmental Commission unanimously found that the P-3 & J Reinvestment Plan was in conformance with the Vail Comprehensive Plan. The Community Development Department recommends that the Vail Town Council approve the P-3 & J Reinvestment Plan. Staff's recommeridation is based upon the review of the proposal as outlined in Section VI of this memorandum and the testimony and evidence presented. Should the Town Council choose to approve the plan, staff recommends that the following findings be made: "That upon review of the proposed P-3 & J Reinvestment Plan, the Vai/ Town Council finds that the plan, as proposed, is in conformity with Vail's Comprehensive Plan and makes the findings stated in section Vl of this memorandum. The Vail Town Council's determination of findings is based upon review of the criteria and the testimony and evidence presented on this application. " Attachments: Attachment 1: Resolution to Approve the Plan Attachment 2 P-3&J Reinvestment Plan Attachment 3: P-3&J Reinvestment Study F:1Users\cdev\COU NCI LIMEMOS\04\P3jPIan031604.doc /'attachment 1 RESOLUTION NO. 12 Series of 2004 A RESOLUTION FOR APPROVING THE P-3 & J REINVESTMENT PLAN AND FINDING THAT THE P-3 & J URBAN RENEWAL AREA IS A BLIGHTED AREA, DESIGNATING SUCH AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT PURSUANT TO THE UF;BAN RENEWAL PLAN, AND FINDING THAT THE ACQUISITION, CLEARANCE, RIEHABILITATION, CONSERVATION, DEVELOPMENT, REDEVELOPMENT OR A COMBINATION THEREOF OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIIC HEALTH, SAFETY, MORALS, AND WELFARE OF THE CITIZENS OF THE TOWN OF VAIL. 1NHEREAS, an urban renewal plan for the P-3 & J Area has been submitted to the Town Council of the Town of Vail for appropriate action pursuant to Part 1 of Article 25 of Title 31, C.R.S.; and 1NHEREAS, the P-3 & J Area which is subject to the P-3 & J Reinvestment Plan is described in Figure 1 of the P-3 & J Reinvestment Plan; and 1~NHEREAS, the Town Council of the Town of Vail adopted the Vail Village Master Plan and the Vail Village Streetscape Plans which are components of the Vail Comprehensive Plan, and ~UHEREAS, the P-3 & J Reinvestment Plan has previously been submitted to the Town of Vail Planning and Environmental Commission for its review and recommendations as to conformity with the Vail Comprehensive Plan pursuant to C.R.S. §31-25-107(2); and UVHEREAS, the Town of Vail Planning and Environmental Commission has determined that the IP-3 & J Reinvestment Plan does conform to the Vail Comprehensive Plan; and WHEREAS, no property in the P-3 & J Urban Renewal Area has been included in an urban renewal plan previously submitted to the Town Council of the Town of Vail;, and WHEREAS, the Town Clerk of the Town of Vail has published the notice of the time, place, and purpose of the public hearing to consider the adoption of the P-3 & J Reinvestment Plan in the Vail Daily in conformance with C.R.S. §31-25-107(3); and UVHEREAS, the Town Council of the Town of Vail has provided written notice of the public hearing to consider the adoption of the P-3 & J Reinvestment Plan to property owners, residents., and business owners within the proposed P-3 & J Urban Renewal Area at their last known addresses in conformance with C.R.S. §31-25-107(4)(c); and WHEREAS, the Eagle County Commissioners have received notification of and copies of the P :3 & J Reinvestment Plan as well as such additional information as is required by C.R.S. §31-25-107(3.5); and WHEREAS, no more than one hundred twenty days have passed since the commencement of the first public hearing of the urban renewal plan. WHEREAS; the Touvn Council of-the Town of Vail has considered the P-3 & J Reinvestment Study prepared by URS Corporation and the proposed Lionshead Urban Renewal Plan; and WHEREAS the Vail Town Council believes that any condemnation by the Vail Reinvestment Authority should be undertaken with the concurrence of the owner of the underlying fee interest; and WHEREAS, Town Council of the Town of Vail has conducted a public hearing and considered the public testimony received. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL THAT: 1. Blight, as defined by C.R.S. §31-25-103(2), is present in the P-3 & J Urban Renewal Area as documented by the P-3 & J Reinvestment Study prepared by URS Corporation and based on evidence presented at the public hearing and as reflected in the P-3 ~ J Reinvestment Plan. The following blight factors are present in the P-3 & J Urban Renewal Area: Defective or unusual conditions of title rendering the title unmarketable. Restrictive covenants controlling uses on the certain properties and other conditions of title impair the redevelopment of key parcels in the Plan Area. 2. Pursuant to C.R.S. § 31-25-1-3(2)(I), the owners of Lots P-3 & J, Vail Associates Holdings Ltd., and the Town of Vail, has advised the Town Council that it does not object to the designation of blight for the Plan Area based the presence of one blight condition. 3. The P-3 ~ J Urban Renewal Area as shown in Figure 1 of the P3 & J Reinvestment Plan is a blighted area and is appropriate for an urban renewal project pursuant to Part 1 of Article 25 of Title 31, C.R.S. ~. The boundaries of the P-3 ~ J Urban Renewal Area have been drawn as narrowly as feasible to accomplish the planning and development objectives for the P-3 & J Urban Renewal Area. 5. The P-3 & J Reinvestment Plan conforms to the Vail Comprehensive Plan, which is the general plan for the development of the Town of Vail. 6. There exist feasible methods for the relocation of individuals and families and business concerns in accommodations or areas suitable for their relocation and meeting the required standards under C.R.S.. § 31-25-107 (4) (a) and (b). 7. The P-3 ~ J Reinvestment Plan will afford maximum opportunity, consistent with the sound needs of the Town of Vail as a whole, for the rehabilitation or redevelopment of the P-3 & J Reinvestment Plan consistent with the Comprehensive Plan by private enterprise. MUR\58179\435461.01 2 •B. The acquisition, clearance, rehabilitation, conservation, development or redevelopment or a combination thereof of the P-3 & J Urban Renewal Area pursuant to the P-3 & J Reinvestment Plan is necessary in the best interests of the public health, safety, morals, and welfare of the citizens of the Tovisn of Vail. Sa. The P-3 & J Reinvestment Plan is hereby approved. INTRODUCED, READ, APPROVED AND ADOPTED this 16~' day of March, 2004: Rodney Slifer, Mayor, Town of Vail ATTEST: Lorelei Donaldson, Town Clerk,- Town of Vail F:\Users\c;dev\RUSS\Projects\Lionshead\TIF\TIF Legal Docs\P38~J\P3Jresolution031604.doc MUR\58179\435461.01 3 A~ac9~~ten4 ~. ~°~ ~ REINVES~°MENT PLAN SAIL INVESTMENT AIJTHRITY ERARY 200 MUR\59599.01 \466495.2 TABLE OF CONTENTS _ ___ _ L INTRODUCTION ........................... ................... ......................................:........ .............. 1 ..,. 1.1 Preface ............................................................................................................................ 1 1.2 Background .....................................................................................................................1 1.3 Definitions .........................................................:. ........................................... 1 2. LEGISLATIVE FINDINGS ....................................................................................................... 2 2.1 Qualifying Conditions ...................................................................................................... 2 2.2 Projects .................................................................... ....................................................... 2 2.3 Planning Approval ........................................................................................................... 2 2.4 Consultation ........................................................................ ................. 2 ........................... 2.5 Public Hearing ............................................... - .................................................................. 3 2.6 Boundaries of the Plan Area ........................................................................................... 3 2.7 Other Findings .........................:................................................................................:..... 3 3. DE;SCRIPTION OF PLAN OBJECTIVES ............................................................................... 4 4. PLAN IMPLEMENTATION ..................................................................................................... 4 4.1 Property Acquisition .................. ...................................................................................... 4 4.2 Relocation Assistance and Payments ............................................................................ 4 4.3 Redevelopment Agreements .......................................................................................... 4 4.4 Interagency Cooperation ................................................................................................ 5 5. MOIDIFICATIONS TO THIS PLAN ......................................................................................... 5 6. TEF;MINATION ..................................................................... .................................................. 5 MUR159599.01 \466495.2 i P-3 ~ .D REIIV!/ESTMENT PLAN GI~ITRO®UCT~®V~ 1.1 Preface ~'ebrasary 200 This P-3 & J Reinvestment Plan ("Plan") has been prepared by the Vail Reinvestment Authority ("VRA") for adoption by the Town Council of the Town of Vail pursuant to provisions of the Urban Renewal Law of the State of Colorado, Article 25 of Title 31, Colorado Revised Statutes. This Plan is prepared and adopted to satisfy the requirements of § 31-25-107, C.R.S., that an urban renewal plan be adopted by the governing body of the municipality before an urban renewal authority undertakes an urban renewal project. The administration of this project and the enforcement and execution of this Plan shall be performed by VRA. 1.2 Backgr®~uo9dl The site is commonly known as Lots P-3 ~ J is located in the center of Vail Village, proximate to the Vail Village Base Area, across Hanson Ranch Road from the Christiania Lodge. The lots are owned by Vail Associates Holdings Ltd. ("Vail Associates"), and are currently used for parking. In addition, loading and other service related activities have been performed on portions of Lots P-3 & J and adjacent public rights-of-way. Loading. and delivery at this site creates congestion and at times obstructs traffic. As part of the Vail Front Door Project, there is a need for the redevelopment of Lots P-3 ~ J to include a parking structure and public open space. The loading and other service related facilities will be moved to an underground loading and delivery facility west of the Vista Bahn ski lift. The benefits of the redevelopment of P-3 ~ J include additional parking facilities in the Vail Village core area without additional surface parking, public open space on a portion of Lots P-3 ~ J which will be maintained by Vail Associates or its successors in interest, and the relocation of loading and other service related activities to locations better designed to handle such trafi•ic, with a corresponding enhancement of pedestrian access adjacent to the site. Certain obsolete restrictive covenants cloud the title to Lots P-3 & J and prevent financing of the redevelopment as proposed. It is necessary to remove these obsolete restrictive covenants in order for the redevelopment to proceed. 1.3 ®efirnBti®o~s Cooperation Agreement: Any agreement between VRA and the Town of Vail or any other public body regarding action taken pursuant to any of the powers set forth in the Urban Renewal Law, or in any other provision of Colorado law, for the purpose of facilitating public undertakings deemed necessary or appropriate by VRA under this Plan. Plan: This P-3 & J Reinvestment Plan as it may be modified from time to time. MUR\59599.01 \466495.2 Plan Area: The area described in Section 2.6 of this Plan, and depicted on Figure 1, which has been found to be blighted and for which the undertaking of an urban renewal project is declared to be necessary. Redevelopment Agreement: An agreement between VRA and a developer or developers respecting the redevelopment or rehabilitation of property within the Plan Area. 2. LEGISLATIVE FINDINGS 2.1 Qualifying Conditions Based on the P-3 & J Reinvestment Study prepared by URS Corporation, dated February 2004, and evidence presented at the public hearing, the Town Council finds that there exists blight, as defined by § 31-25-103(2), C.R.S., in the Plan Area. The P-3 & J Reinvestment Study found that the following blight condition exists in the area:. Defective or unusual conditions of title rendering the title unmarketable. Restrictive covenants controlling uses on the certain properties and other conditions of title impair the redevelopment of key parcels in the Plan Area. In many instances, covenant provisions conflict with or have been ignored by prior development. Pursuant to § 31-25-1-3(2)(I), the owner of Lots P-3 & J, Vail Associates has advised the Town Council that it does not object to the designation of blight for the Plan Area based the presence of one blight condition. The Town Council finds that the presence of this factor substantially impairs or arrests the sound growth of the Town of Vail, retards the provision of housing accommodations, constitutes an economic and social liability and is a menace to the public health, safety, morals and welfare of the Town of Vail. 2.;2 Projects The Plan Area is appropriate for one or more urban renewal projects and other undertakings of the VRA as authorized by the Urban Renewal Law. 2.3 Planning Approval The Town Council has adopted a general plan for the Town of Vail, known as the Vail Comprehensive Plan. The Planning and Environmental Commission met on February 23, 2004, and has submitted its written recommendation via a staff memorandum that the P-3 & J Reinvestment Plan is in conformity to the Vail Comprehensive Plan. 2.4 Consultation This Plan has been submitted to the Board of County Commissioners of Eagle County as required by the Urban Renewal Law. The Eagle County School District has been advised of this Plan and has been given an opportunity to provide comments. MUR\59599.01 \466495.2 2 2.5 Publfic ReaPUa~g The Town Council of the Town of Vail has held a public hearing to consider this Plan after public notice thereof in compliance with the Urban Renewal Law in the Vail ®aily, describing the time, date, and purpose of the public hearing, identifying the Plan Area and outlining the general scope of the projects being considered for implementation pursuant to this Plan. Pursuant to C.R.S. §31-25-107(3), notice of the public hearing was provided to owners, residents, and business owners in the Plan Area at their last known address at least 30 days before the date of the public hearing. 2.6 ~oaaoltdaP'ses ®$ the Plan Area The boundaries of the Plan Area shall be as set forth in Figure 1 attached hereto. The Town Council finds that the boundaries of the Plan Area have been drawn as narrowly as feasible to accomplish the planning and development objectives of this Plan. 2.7 ®theP Furudlo~gs 2.7.1 The property in the Plan Area is subject to restrictive covenant provisions from previous subdivisions of property in Vail. In many cases, the covenant provisions conflict with one another and in some cases have been ignored by existing development. These restrictive covenants create an impediment to the redevelopment of the property within the Plan Area, particularly the financing of improvements which are key to the redevelopment of the Plan Area. VRA is authorized to use the power of eminent domain, with the consultation and concurrence of the owner of the fee interest to be condemned, to eliminate restrictive covenant provisions and other conditions of title which prevent redevelopment of properties within the Plan Area. 2.7.2 If it becomes necessary for individuals, families or businesses to relocate as a result of the implementation of this Plan, a feasible method exists for the relocation of individuals, families, and business concerns that may be displaced, insuring that decent, safe and sanitary dwelling accommodations and business locations can be made available. 2.7.3 The powers conferred by the Urban Renewal Law are for public uses and purposes for which public money may be expended and the police powers exercised, and this Plan is in the public interest and necessity, such finding being a matter of legislative determination by the Town Council. 2.7.4 This Plan will afford maximum opportunity, consistent with the sound needs of the Town as a whole, for the rehabilitation or redevelopment of the Plan Area by private enterprise. MUR\59599.01 \466495.2 3. DESCRIPTION OF PLAN OEJECTIVES This Plan is an important tool to address the problems confronting the Vail Village area. The Plan helps to further the goals for the area previously outlined in the Vail Comprehensive Plan. The objectives for the Plan include the following: Create a sense of place and an improved aesthetic character for Vail Village for both residents and guests. ~~ Enhance the aesthetic appearance of the area to make it more appealing. • Improve pedestrian, bicycle, mass transit and auto accessibility and circulation. • Eliminate impediments to the redevelopment of key facilities within the Plan Area. • Upgrade and restore public infrastructure including transportation facilities, parking, sidewalks and streetscapes. 4. PLAN IMPLEMENTATION In order to accomplish the objectives of this Plan and to fully implement this Plan, VRA shall'be authorized to undertake the following activities: 4.1 Property Acquisition The principal purpose of this Plan is the removal of legal impediments to the creation of public open space and to new private investment occurring on private property. Restrictive covenants and other conditions of title interfere with new private investment. Thie power of eminent domain as authorized by the Urban Renewal Law may be utilized as VRA determines necessary to eliminate and remove restrictive covenants and other conditions of title which interfere with new private investment, with the consent of the owner of any fee interest to be condemned. 4.2 Relocation Assistance and Payments In the event it is necessary to relocate or displace any business or other commercial establishments as a result of any property acquisition, VRA may adopt relocation policies for payment of relocation expenses. Such expenses may include moving expenses, actual direct losses of property for business concerns, and goodwill and lost profits that are reasonably related to relocation of the business, resulting from its displacement for which reimbursement or compensation is not otherwise made. 4.3~ Redevelopment Agreements VR,A is authorized to enter into one or more Redevelopment Agreements with developer(s) and such other entities as are determined by VRA to be necessary or desirable by VRA to carry out the purposes of this Plan. Such Redevelopment Agreements may contain such terms and provisions as shall be deemed necessary or appropriate by VRA for the purpose of undertaking the activities contemplated by this MUR\59599.01 \466495.2 4 Plan or the Urban Renewal Law, and may further provide for such undertakings by VRA, as may be necessary for the achievement of the objectives of this Plan or as may otherwise be authorized by the Urban Renewal Law. 4.4 Vo~teragency Cooperation VRA may enter into one or more Cooperation Agreements with the Town of Vail or other public bodies pursuant to the Urban Renewal Law. Cooperation Agreements may provide, without limitation, for financing, for construction of public improvements, for administration, for technical assistance and for other purposes. 5. M®®IEiC~4T9®NS T® ~'~iGS PLAN This Plan may be amended or modified pursuant to provision of the Urban Renewal Law as provided in § 31-25-107, C.R.S. Modifications to this Plan will require appropriate notification in accordance with the Urban Renewal Law, including submission to the Board of County Commissioners of Eagle County and written notice provided to all property owners, residents, and owners of businesses in the Plan Area not less than 30 days prior to the consideration of a substantial modification. 6. TERIiAlN~4~'9®~I This Plan shall terminate and the designation of blight made herein shall terminate upon the elimination of those protective covenants and other conditions of title which impair the redevelopment in the Plan Area. F:\Users\cdev\RUSS\Projects\Lionshead\TIF\TIF Legal Dots\P3&J1P3&J REINVESTMENT PLAN316.DOC MUR\59599.01\466495.2 5 FIGURE 1 MAP OF PLAN AREA MUR\59599.01 \466495.2 6 ~;~. ,_ \, ; . ;:, '~`'~ , 1e~ _v ~~ t r ~ ~ ~G N_"'~ r; r +' .~ I J ~5. / R J y' r~E N..~ r }, c.. ~".'~ ,...._ . .~±'" ~ `~,~ ~~f :~~ prepared by: for: e~ TOW,YOFYAII; ' ~.`. ;.:ice!"'. ~~. ; r ~'` ~ f a f rl~ ~..f~ ~~~ ~ ... ~.. • . ~ . ~ . _ ~ r. ~ z ~~ f ~.~ G~C~O~nIMC~~41~1C~fnl4 ~4~uI~I~f Flnal Report February 2004 Town of Vail - Parcels P3 & J Reinvestment Study ~ February 2004 Table of Contents 1.0 Reinvestment Study Purpose ......................................................................................................1 2.0 Study Area Location and Definition .............................................................................................2 3.0 Study Area Description ...............................................................................................................5 4.0 Colorado Urban Renewal Law ..................................:.................................................................6 5.0 Conditions Contributing to a Finding of Blight ..............................................................................8 6.0 Field Survey Findings ..............................................:.................................................................11 7.0 Summary of Findings ..........................................................................................'......................13 Table of Exhibits . ~, Exhibit 1: Regional Context Map ..............................................:............................................................. 3 Exhibit 2: Study Area Map ......................................................................... ............................................ 4 Exhibit 3: Selected Study Area Photographs ......:.............................................................................. ...14 ~~~ ~ TOWNOFYAILI% Town of Vail -Parcels P3 $ J Reinvestment Study February 2004 ~.® C®Borado ~9r9~aro fReruewa9 haw In the Colorado Urban Renewal Law, Colo: Rev: Stat. § 31-25-101 et seq. (the "Urban Renewal Law"), the legislature has declared that an area of blight "constitutes a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state in general and municipalities thereof; that the existence of such areas contributes substantially to the spread of disease and crime, constitutes an economic and social liability, substantially impairs or arrests the sound growth of municipalities, retards the provision of housing accommodations, aggravates traffic problems and impairs or arrests the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of slums and blight is a matter of public policy and statewide concern...." Under the Urban Renewal Law, the term "blighted area" describes an area with an array of urban problems, including health and social deficiencies, and physical deterioration. See Colo. Rev. Stat. § 31-25-103(2). Before remedial action can be taken by a public agency, however, the Urban Renewal Law requires a finding by the appropriate governing body that an area such as the Study Area constitutes a blighted area. Id. § 107(1). The determination that an area constitutes a blighted area is a cumulative conclusion attributable to the presence of several physical, environmental, and social factors. Indeed, blight is attributable to a multiplicity of conditions, which, in combination, tend to accelerate the phenomenon of deterioration of an area. For purposes of the study, the definition of a blighted area is premised upon the definition articulated in the Urban Renewal Law, as follows: "`Blighted area' means an area that, in its present condition and use and, by reason of the presence of at least four of the fol/owing factors, substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace. to the public health, safety, morals, or welfare: a. Slum, deteriorated, or deteriorating structures; b. Predominance of defective or inadequate street layout; c. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; d. Unsanitary or unsafe conditions; e. Deterioration of site or other improvements; f. Unusual topography; g. Defective or unusual conditions of title rendering the title non-marketable; h. The existence of conditions that endanger life or property by fire and other causes; i. Buildings that are unsafe or unhealthy for persons to live or work in; j. Environmental contamination of buildings or property; or k Inadequate public improvements or utilities." 6 ~~ Town of Vail -Parcels P3 & J Reinvestment Study February 2004 3.0 Study Area Description The Study Area is located in the Vail Village part of the Town of Vail. The site consists of two parcels and portions of the public right-of-way and totals approximately one and a half acres in area. The Study Area sits near the heart of Vail Village and is surrounded by mixed-use commercial and residential developments. Parcel P3 contains the western half of an asphalt parking lot and an adjacent strip of landscaped lawn. Parcel J contains the eastern half of the same parking lot and landscaping. Surrounding these two parcels on the north, west, and south sides is the public right-of- way for Gore Valley Drive, South Hanson Ranch Road, and a short north-south connector street. The zoning on both Parcels P3 and J is the Parking (P) zone designation. The land use on both Parcels P3 and J is "Village. Master Plan." Both Parcels P3 and J are owned by Vail Associates. The public right-of-way portion of the Study Area is owned by the Town of Vail. 5 Town of Vail -Parcels P3 & J Reinvestment Study February 2004 Legend ~ ® Study Area Boundary Parcel Boundary rowvar~ 4 ~~~ Exhibet 2: S#ucly Area Map Town of Vail -Parcels P3 & J Reinvestment Study February 2004 Colorado 701YNOFY` ~i~ 3 Exhibit 1: Regional Context Map Town of Vail -Parcels P3 8~ J Reinvestment Study February 2004 ~.® Stud}/ Area ~®cat6®~ and ®etineti®n The Vail Parcels P3 & J Study Area is located in the Town of Vail in the State of Colorado, roughly 100 miles west of Denver along Interstate 70 (see Exhibit 1: Regional Context. Map). The Study Area is generally situated within the Vail Village part of the Town, approximately one block west of Vail Valley Drive and immediately south of Gore Creek Drive and north of South Hanson Ranch Road (see Exhibit 2: Study Area Map). The Study Area is approximately one and a half acres in size and consists of 2 real estate parcels: Parcel P3 and Parcel J, and portions of the public right-of--way. IY)WNOFYAILII 2 Town of Vail -Parcels P3 & J Reinvestment Study February 2004 1.0 Reinvestment Study Purpose _,_. a purpose'o th'is'reinvestmerit~stiady is fo determirie whether fhe Vail Parcels P3 & J Study Area ("Study Area") constitutes a "blighted area" within the meaning of Colorado Urban Renewal Law, and whether the Study Area should be recommended for such urban renewal.efforts as the Town of Vail may deem appropriate to prevent further deterioration and blight. ~mo~~ ~ Town of Vail -Parcels P3 & J Reinvestment Study February 2004 Additionally, paragraph (l.) states, "if there is no objection by the property owner or owners and the tenant or tenants of such owner or owners, if any, to the inclusion of such property in an urban renewal area, `blighted area' also means an area that, in its present condition and use and, by reason of the presence of any one of the factors specified in paragraphs (a) to (k) of this subsection...." Several principles have been developed by Colorado courts to guide the determination of whether an area constitutes a blighted area under the Urban Renewal Law. First, the absence of widespread violation of building and health codes does not, by itself, preclude a finding of blight. "The definition of `blighted area' contained in [the Urban Renewal Law] is broad and encompasses not only those areas containing properties so dilapidated as to justify condemnation as nuisances, but also envisions the prevention of deterioration." Second, the presence of one well-maintained building does not defeat a determination that an area constitutes a blighted area. A determination of blight is based upon an area "taken as a whole," and not on abuilding-by-building or parcel-by-parcel basis. Third, an authority's "determination as to whether an area is blighted...is a legislative question and the scope of review by the judiciary is restricted." A court's role in reviewing such a blight determination is simply to verify independently if the conclusion is based upon factual evidence and consistent with the statutory definition. URS was retained by the Town of Vail to perform an independent survey of the Study Area and to determine if it constitutes a blighted area under the Urban Renewal Law. Based upon the conditions existing in the Study Area, this study will make a recommendation as to whether the Study Area constitutes a blighted area. The actual determination itself remains the responsibility of the Town's legislative body. Each parcel was surveyed and evaluated to determine the level of blight within the parcel. When determining whether the Study Area is blighted, however, the entire Study Area was analyzed as a whole. 7 *}pL. V iY7 Town of Vail -Parcels P3 & J Reinvestment Study February 2004 5.0 Conditions Contributing to a Finding of Blight __._. _. _ _ __.. is section provides a~defailed explanatioii of ttie-type of site conditions that would contribute to the finding of blight for each of the eleven criteria established by Colorado statutes. Slum, Deteriorated, or Deteriorating Struictures Field survey efforts examining this blight criterion focus on the general condition and level of deterioration of a building's exterior components, such as: • Exterior walls • Visible foundation • Fascia and soffits • Gutters and downspouts • Exterior finishes • Windows and doors • Exterior stairways and fire escapes • Loading dock areas • Fences, walls, and gates ' The examination of these structural elements is limited to a visual inspection of condition and not a detailed engineering or architectural analysis. The intent of this portion of the field survey is to identify obvious indications of disrepair and deterioration in the exterior of the structures found within the Study Area. Predominance of Defective or Inadequate Street Layout . The analysis conducted for this blight criterion evaluates the effectiveness or adequacy of the streets that surround and penetrate the Study Area. Factors in this section include: • Poor vehicular access to buildings or sites • Poor internal vehicular circulation • Substandard driveway or curb cut definitions • Poor parking lot layout or access The identification of deficiencies in these transportation-related areas is made through both observation in the field as well as through an analysis of Study Area site plan maps and the Study Area's overall integration with the surrounding transportation network. TO~f~'OFY,Ill.V U Town of Vail -Parcels P3 & J Reinvestment Study February 2004 C=aulty Lot t_ayout in Relation to Size, Adequacy, Accessibility, or Usefulness This blight criterion requires an analysis of the Study Area with regard to its accessibility and usefulness as a developable or developed site. Conditions within this criterion include: o Faulty lot shape o Faulty lot layout o Inadequate lot size o Non-conforming or incompatible land use These factors take into consideration the position and orientation of Study Area structures to other structures (both in and out of the Study Area) as well as the shape, orientation, location, and size of parcels, and if these attributes would negatively impact the potential for development or redevelopment. The analysis is performed both through observation in the field and through an analysis of the Study Area site plan maps and the site plans of the adjacent real estate parcels. Unsanitary or Unsafe Conditions Field survey efforts within this blight criterion focus on the following factors: o Poorly lit or unlit areas Cracked or uneven surfaces for pedestrians o Poor drainage or standing water Insufficient grading or steep slopes Presence of trash, debris, or weeds ® Presence of abandoned vehicles ® Presence of vagrants, vandalism, or graffiti The presence of these conditions indicate or can contribute to an environment that is unsanitary or unsafe, especially for pedestrians and children. ®eterioration of Site or ®ther Improvements This section focuses on conditions that indicate the lack of general maintenance at a site or, through the presence of these factors, an environment that reduces a site's usefulness and desirability. Presence of billboards © Deterioration of signage Neglected, vacant or abandoned properties o Unscreened trash or mechanical equipment o Parking surface and/or parking curb deterioration General site maintenance problems o Lack of landscaping 9 7~~r aua.7 Town of Vail -Parcels P3 & J Reinvestment Unusual Topography The focus in this section is on the presence of unusual topographical conditions, such as: • Steep slopes • Flood plains and wetlands • Rock outcroppings • Poor load-bearing soils February 2004 Defective or Unusual Conditions of Title Rendering the Title Non-marketable This criterion, when it does apply, is usually known to exist at the commencement of the blight study. Situations that might be present that cloud the validity of a parcel's title, or titles containing obsolete or restrictive covenants that prevent or impair redevelopment, can adversely affect the marketability and desirability of a property. The Existence of Conditions that Endancter Life or Property by Fire and Other Causes The presence of the following factors can lead to the finding of blight within this criterion: • .Buildings or sites inaccessible to fire and emergency vehicles • Blocked or poorly maintained fire and emergency access routes or frontages • Insufficient fire and emergency vehicle turning radii Buildings that are Unsafe or Unhealthy for Persons to Live or Work In Some of the conditions that can contribute to this blight criterion include: • Poor structural design or construction • Inadequate or improper installation of electrical, mechanical, or other utility components • Lack of sanitary water or sewer systems Environmental Contamination of Buildings or Property Factors evaluated in this section include the presence of hazardous substances, liquids, or gasses found within the soils, structures, water sources, or other sites within the Study Area. Inadequate Public Improvements or Utilities This section identifies key deficiencies in the public infrastructure system within the Study Area, including: . • Deterioration of street pavement, curb or gutter • Insufficient street lighting • Presence of overhead utilities • Lack of sidewalks ~owroer~ 10 Town of Vail -Parcels P3 & J Reinvestment Study February 2004 ~.® field Survey i°indings The overall findings of the Vail Parcels P3 & J Study Area field survey are presented in this section. This evaluation is based on the analysis of data and field survey conducted in January of 2004. Slum, ®eteriorated or ®eteriorating Structures As there are no structures located with the Study Area, there is no evidence of blight under this criterion. Predominance of ®efective or Inadequate Street Layout No evidence of defective or inadequate street layout was observed within the Study Area. Faulty Lot Layout No evidence of faulty lot layout was observed within the Study Area. Unsanitary or Unsafe Conditions At the time of the field survey in January 2004, the parking lot and adjacent streets in the Study Area were covered in ice and snow which presents a potentially unsafe environment for pedestrians. However, given Vail's location in a mountainous region that experiences significant snowfall during the winter months, this is not a situation unique to the Study Area and does not represent a condition that alone qualifies as evidence of blight under the "Unsanitary or Unsafe Conditions" criterion. ®eterioration of Site or ®ther Isvaprovements Minor evidence of deterioration of site or other improvements was found within the Study Area. A split rail wooden fence separates the parking lot from the condominium building to the east of Parcel J. A section of the fence rail had come loose and was observed lying on the ground at the time of the field survey. In an other example, a sign identifying the parking lot was bent and its surface weathered. Neither of these conditions, however, reflect a true deterioration of the site or evidence of a lack of general upkeep on the property. Both could be reasonably expected to occur given Vail's extreme winter environment, and both can be fixed through simple maintenance. The parking lot and the surrounding grounds are generally in well-kept condition; therefore, it has been determined that these minor examples do not rise to a level necessary to consider the Study Area blighted under this criterion. Unusual Topography No evidence of unusual topography was observed within the Study Area. ®efective or Unusual Conditions of Title Rendering the Title Non-marketable There does exist within the Study Area the presence of defective or unusual conditions of title rendering the title non-marketable. Both Parcels P3 and J have titles which contain several restrictive covenants that dictate the nature and intensity of the uses allowed on the property. As a result of these covenants and the adverse conditions of title they create, the owners of these parcels are unable to redevelop ,~ 11 Town of Vail -Parcels P3 & J Reinvestment Study February 2004 their property to a higher or different use that would otherwise be possible or permissible. Consequently, the marketability of these parcels is significantly compromised. This situation creates not only an unreasonable financial disadvantage to the property owners, but to the Town of Vail and its citizens as well. Because of the adverse conditions of title that exist for Parcel P3 and for Parcel J, the sound growth of the Town is clearly impaired and, therefore, the public welfare is not served. This directly qualifies as a condition of blight as intended by the Colorado Urbari Renewal statutes. The Existence of Conditions that Endanger Life or Property by Fire and Other Causes No evidence of conditions that endanger life: or property by fire and other causes was observed within the Study Area. Buildings that are Unsafe or Unhealthy for Persons to Live or Work In As there are no buildings within the Study Area, there is no evidence of this blight criterion. Environmental Contamination of Buildings or Property No evidence of environmental contamination of buildings or property was observed within the Study Area. Inadequate Public Improvements or Utilities No evidence of inadequate public improvements or utilities was observed within the Study Area. 12 L~.S Town of Vail -Parcels P3 & J Reinvestment Study February 2004 ~.® Surnrna~f of Fort~Bings It is the conclusion and recommendation of this study that the Study Area, in its present condition and use, is a blighted area as defined in Colo. Rev. Stat. § 31-25-103(2). The conclusion and recommendation is based on the existence of the following blight condition found in the Study Area and described previously in Section 6.0: 1. Defective or Unusual Conditions of Title Rendering the Title Non-marketable. There is direct knowledge and evidence that the titles for the properties within the Study Area known as Parcel P3 and Parcel J contain several restrictive covenants that create an adverse condition of title that renders the titles non-marketable. As noted in Section 4.0, paragraph (l.) of the pertinent statute states, "if there is no objection by the property owner or owners and the tenant or tenants of such owner or owners, if any, to the inclusion of such property in an urban renewal area, `blighted area' also means an area that, in its present condition and use and, by reason of the presence of any one of the factors specified in paragraphs (a) to (k) of this subsection...." The property owners of Parcel P3 and Parcel J and the Town of Vail do not object to a finding of blight for the Study Area or the inclusion of their property in an urban renewal area. Additionally, at least one of the eleven blight criteria identified in Section 103(2) of the Urban Renewal Law was identified within the Study Area. The conditions outlined in paragraph (/.) have been met. Therefore, it is the finding of this study that the Study Area is blighted and, therefore, "substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare." While each of the two parcels and the public right-of-way portion of the Study Area were surveyed individually, it should be noted that the conclusion and recommendation of this study is based on the Study Area as a whole, and is not based on the conditions found on individual parcels. 13 Town of Vail -Parcels P3 & J Reinvestment Study February 2004 Exhibit 3: Selected Study Area Photographs 7T1WNOfY~ 14 Town of Vail -Parcels P3 8 J Reinvestment Study February 2004 15 TTIWNOF'VAIf. ' I Town of Vail -Parcels P3 & J Reinvestment Study February 2004 16 7NOFVAIf. ~ ~IiW 17 1; Town of Vail - Parcels P3 & J Reinvestment Study February 2004 Town of Vail - Parc@Is P3 & J Reinvestment Study February 2004 18 ~n~uoF~an, ~ ~~ 19 ~~7.~ Town of Vait - Parcels P3 & J Reinvestment Study February 2004 Town of Vail -Parcels P3 & J Reinvestment Study February 2004 7pWNOFVAQ, 20 21 Town of Vail - Parcels P3 & J Reinvestment Study February 2004 Attachment 4 PLANNING ANO ENVIRONMENTAL COMMISSION PUBLIC MEETING Monday, February 23, 2004 PROJECT ORIENTATION -Community Development Dept. PUBLIC WELCOME 12:00 pm MEMBERS PRESENT John Schofield Erickson Shirley George Lamb Rollie Kjesbo Doug Cahill Gary Hartman . Chas Bernhardt MEMBERS ABSENT Site Visits 1. The Ruins -1000 W. Frontage Road 2. VRD/Vail Gymnastics Facility - 551 N. Frontage Road West Driver: George 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 final review of a proposed amendment to the Town of Vail Official Zoning Map to change the zoning of the West Vail Lodge Properties from Commercial Core 3 (CC3) to High Density Multiple Family (HDMF), located at 2278, 2288, 2298 Chamonix Lane and 2211 North Frontage Road/ Lots 1, 2, 3, and Tract C Vail Das Schone Filing 1 and Inn at West Vail Lot 1, Block A, Vail Das Schone Filing 3, in accordance with Section 12-3-7, Vail Town Code, and setting forth details in regard thereto. Applicant: Vanquish Vail, LLC, represented by Allison Ochs Planner: Matt Gennett MOTION: Cahill SECOND: Kjesbo VOTE: 7-0 TABLED TO MARCH 8, 2004 Matt Gennett stated that in order for this proposal to proceed forward in any form other than that which is proposed, the applicant shall be required to submit a new application to the Community Development Department. The Commission requested that a very direct letter be forwarded to the applicant stating such requirement. 2. A request for a work session to discuss an application for a major amendment to Special Development District #4, Cascade Village, pursuant to Section 12-9A-10, Vail Town Code to allow for the adoption of a Development Plan for the development of a new multiple-family structure, Located at 1000 W. Frontage Rd./Cascade Village, Development Area A, and setting forth details in regard thereto. Applicant: Ramsey Flower and Greg Walton Planner: George Ruther MOTION: Cahill SECOND: Kjesbo VOTE:7-0 TABLED TO MARCH 8, 2004 ~; . TDI~N OF PAIL 3. A request for a final review of a conditional use permit, pursuant to section 12-9C-3, Vail Town Code, to allow for a public indoor community facility, located at 551 N. Frontage Road WestNail Potato Patch, Red Sandstone Elementary School, and setting forth details in regard thereto. Applicant: VRD -Vail Gymnastics Facility, represented by Fritzlen Pierce Architects Planner: Matt Gennett flflOTION: Cahill SECOND: Hartman VOTE: 7-0 APPROVED 1NITH THREE Al1AENDED CONDITIONS OF APPROVAL: 1. This conditional use permit approval is contingent upon the applicant receiving Town of Vail design review approval for this proposal. 2. No parking of vehicles associated with the use of the gymnastic facility shall be allowed on the North Frontage Road. Failure to comply with this condition shall be grounds for revocation of the conditional use permit for the gymnastic facility 3. The hours of operation for the use of the gymnastic facility shall not interfere with school programs, parking, and activities. The terms for the use of the gymnastic facility shall be documented in an adopted IntergovernmentaB Agreement (IGA) by and between the Eagle County School District, Vail Recreation District, and Town of Vail. Said Agreement . shall be in place prior to the issuance of a Certificate of Occupancy for the facility. Matt Gennett made a presentation per the staff memorandum outlining the request. Staff recommended approval of the request with three conditions as outlined in the staff memorandum. The Commission expressed concern with three issues 1) hours of operation and conflicts with the school hours, 2) traffic circulation and parking, and 3) location of bus stop. Greg Moffat, speaking for the applicant, responded to the Commissions concerns. The Commission continued to investigate answers to their expressed concerns. Following discussion on the request, the Commission agreed that amendments to the proposed conditions were required. Upon discussion off the conditions, a motion for approval with amendments to the conditions was made. 4. A request for a recommendation to the Vail Town Council that the Lionshead Public Facilities Development PBan is consistent with the Vail Comprehensive Plan. The specific description and area for the Lionshead Public Facilities Development Plan are in the Community Development Department. The general description includes that area north of Gore Creek, west of Middle Creek, east of Red Sandstone Creek and south of Interstate 70 in the Town of Vail. Russell Forrest made a presentation to the Commission describing the need for the Plan per the staff memorandum. Staff recommended that the Commission forwards a recommendation of approval of the Plan to the Vail Town Council. Under public comment, Jim Lamont questioned uses of the TIF dollars and inconsistencies between zoning and covenants. Mr. Lamont expressed his support for the use of an urban renewal district to remove such inconsistencies when used to ensure compliance with community goals. The Commission questioned how the determination was to be made on which covenants are "offending° and in need of removal. Several Commission members expressed reservations with regard to how the condemnation proceedings will affect the development future of Lionshead with the main concern being the ability to condemn more "recently" established covenants. The Commission indicated that criteria for removal or considerations for evaluation be established to address which covenants should be eligible for consideration for removal. It was determined that if the removal of the 2 covenants furthered the goals of the town as documented in the adopted master plans, then removal should be allowed. The process of removal must include a public process for consideration. The Commission recommended that the use of condemnation powers of the Authority shall be limited to the removal of defunct, conflicting and obsolete covenants that. inhibit the ability to implement the goals and objectives of the Town's master plan and adopted planning documents. The Commission made motion that: "That upon review of fhe proposed Lionshead Public Facilities Development Plan, the Planning and Environmental Commission finds that the plan, as proposed, is in conformity with the Town of Vail's comprehensive plan as stated in section V/ of this memorandum. The Commission's determination of findings is based upon review of the criteria and the testimony and evidence presented on this application." Applicant: Vail Reinvestment Authority Planner: Russell Forrest MOTION: Kjesbo SECOND: Lamb VOTE: 6-0-1 (Shirley) 5. A request for a recommendation to the Vail Town Council that the P-38~J Reinvestment Plan is consistent with the Vail Comprehensive Plan located at Lots P3 & J, Block 5A, Vail Village Stn Filing. Russell Forrest made a presentation to the Commission describing the need for the Plan per the staff memorandum. Staff recommended that the Commission forwards a recommendation of approval of the Plan to the Vail Town Council. The Commission discussed both Items 4 and 5 on the agenda concurrently. The PEC found: "That upon review of the proposed P-3 & J Reinvestment Plan, the Planning and Environmental Commission finds that the plan, as proposed, is in conformity with the Town's comprehensive plan as stated in section VI of this memorandum. The Commission's determination of findings is based upon review of the criteria and the testimony and evidence presented on Phis application." Applicant: Vail Reinvestment Authority Planner: Russell Forrest MOTION: Kjesbo SECOND: Cahill VOTE: 7-0 6. A request for a recommendation to the Vail Town Council of a major amendment to Special Development District No. 36, Four Seasons Resort, pursuant to Section 12-9A-10, Vail Town Code, to allow for amixed-use hotel; a request for a final review of a conditional use permit, pursuant to Section 12-7A-3, Vail Town Code, to allow for Type III Employee Housing Units and a fractional fee club; and a request for a recommendation to the Vail Town Council of a proposed rezoning of Lots 9A 8~ 9C, Vail Village 2nd Filing from Public Accommodation (PA) zone district to High Density Multiple Family (HDMF) zone district, located at 28 S. Frontage Rd. and 13 Vail Road/Lots 9A& 9C, Vail Village 2nd Filing, and setting forth details in regard thereto. Applicant: Nicollet Island Development Company Inc. Planner: George Ruther MOTION: Cahill SECOND: Kjesbo VOTE: 7-0 TABLED TO MARCH 8, 2004 3 7. A request for a recommendation to the Vail Town Council for the establishment of Special Development District No. 38, Manor Vail Lodge, to allow for the redevelopment of the Manor Vail Lodge, and a request for a conditional use permit to allow for the construction of Type III Employee Housing Units, pursuant to Section 12-6H-3, Vail Town Code, located at 595 Vail Valley Drive/Lots A, B, ~ C, Vail Village 7th Filing, and setting forth details in regard thereto. Applicant: Manor Vail, represented by Melick and Associates Planner: V1/an-en Campbell IIlIOTIOI'd: CaltiiV9 SECON®: IKjesb® TALE®TO AA~4RCH 8, a00~ 11. Approval of minutes iVIOTIOM!!: CahilV SECOIV®: lias~mar~ 12. Information Update Irwin Variance Appeal 13. Adjournment flAOTIOId: Kjesb® SECON®: Lamb VOTE: 7-0 VOTE: 7-0 VOTE: 7-0 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 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 Published, February 20, 2004 in the Vail Daily. 4 J i1~EIVlORANDUl1~ TO: Vail Town Council FROM: Community Development Department DATE: March 16, 2004 SUBJECT: A request for approval of Resolution 13, Series of 2004 that would authorize the Town Manger to remove certain protective covenants within Forest Court Subdivision. Planner: Russell Forrest 1. 2. 3. DESCRIPTION OF REQUEST Vail Resorts is requesting that certain protective covenants be removed to facilitate the development of the approved Forest Court Subdivision and the new skier bridge. Bi4CKGROUND Vail Resorts has received approval for a new subdivision on Forest Road called Forest Court Subdivision. They have also received approval for the construction of a new skier bridge. Vail Resorts has begun to remove ski operation facilities on the Forest Court Subdivision site and is ready to start construction on the new skier bridge this summer with completion this fall. Neither project can proceed with the existing covenants in place. These covenants, which were an amendment to existing covenants, can be modified or removed by the mutual consent of the Town of Vail and Vail Resorts, Inc. This Forest Court Subdivision is not part of the Lionshead Urban Renewal Area. STAFF RECOIVIIVIENDATION The Forest Court Subdivision has been approved by the Town of Vail and it is not located in the Lionshead Urban Renewal Area. Staff recommends approval of Resolution 13, Series of 2004. Attachment 1: Resolution 13 Attachment 2: Proposed Changes in the Covenants At$acl~~eu~g ~ RESOLUTION NO. 13, SERIES OF 200 A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AND DELIVER A PARTIAL TERMINATION OF PROTECTIVE COVENANTS, TO BE MADE lf~ITH THE VAIL CORPORATION, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail, acting through its Town Council and its Planning and Environmental Commission, have approved and adopted a rezoning and resubdivision of certain real property owned by The Vail Corporation and now legally platted as Forest Court Subdivision, according to the recorded plat thereof, which replatting and resubdivision allow for the development and use of that property for single-family residences; and WHEREAS, the aforesaid Forest Court Subdivision, and certain other parcels also owned by The Vail Corporation (collectively the "Property"), are subject of record to certain protective covenants set forth in an instrument recorded in the real property records for Eagle County, Colorado, on August 30, 1971, at Book 221, Page 498 (the "Covenants"), which Covenants conflict with single-family residential use, and may conflict with other desirable uses for the Property, and also provide that they may not be terminated or amended except by written consent of both Vail Associates, Inc. (now known as The Vail Corporation) and the Town of Vail; and WHEREAS, the Covenants are contrary to applicable public land use policies, and should be .removed as an impediment to those policies; and WHEREAS, the Town Council of the Town of Vail finds that the adoption of this Resolution No. 13, Series of 2004, is in the best interests of the Town of Vail and its citizenry. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: 1. The Town Council of the Town of Vail hereby authorizes the Town Manager to execute and deliver a Partial Termination of Protective Covenants in such form and with such provisions as the Town Manager may deem necessary or appropriate, after consultation with the Town Attorney, for purposes of effectuating the termination of the Covenants as an encumbrance against the Property. 2. If any part, section, subsection, sentence, clause or phrase of this Resolution is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Resolution, and the Town Council hereby declares it would have passed this Resolution, and each part, section, subsection, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, clauses or phrases be declared invalid. 3. The Town Council hereby finds, determines and declares that this Resolution is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Resolution No. 13, Series of 2004 1 4. 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 ADOPTED this '16th day of Larch, 2004. Rodney Slifer, Mayor, Town of Vaif ATTEST: . Lorelei Donaldson, Town Clerk Resolution No. 13, Series of 2004 2 A$$~a;~~aeo~it ~ PAR'f><A]L TER1V1(1<NA'fg®N ®)F PR®7'ECTIVE C®VENAN'TS THIS PARTIAL TERMINATION OF PROTECTIVE COVENANTS ("Termination") is made as of the day of 20 by and between THE VAIL CORPORATION, f/k/a and d/b/a VAIL ASSOCIATES, INC., a Colorado corporation ("Vail Corp"), and the TOWN OF VAIL, a municipal corporation and political subdivision of the State of Colorado (the "Town"). Recitals A. Vail Corp and the Town are collectively the owners of certain real properties (the "Subject Properties") within the boundaries of the Town in Eagle County, Colorado, which are subject of record to certain protective covenants set forth in an instrument recorded in the real property records for Eagle County, Colorado (the "Records"), on August 30, 1971, at Book 221, Page 498 (the "Covenants"). B. Vail Corp and the Town have mutually determined that there is no further need for the Covenants to encumber the Subject Properties owned by Vail Corp (the "Vail Corp Properties"), and that by virtue of this instrument, and pursuant to the terms of the Covenants, they will mutually consent to and effectuate the termination of the Covenants for the Vail Corp Properties. NOW, THEREFORE, Vail Corp and the Town hereby mutually covenant and agree and provide their mutual consent that the Covenants are hereby terminated as an encumbrance against and are of no further force or effect with respect to the Vail Corp Properties, which are comprised of the "Subject Land" described in the Covenants except for the portions thereof conveyed to the Town of Vail (the "Town Properties") by two deeds recorded in the Records on July 17, 1984, at Book 389, Page 502, and on January 20, 2000, at Reception No. 720888 (the "2000 Deed"). The Covenants will remain in full force and effect against the Town Properties. In addition, the Town also agrees that the use restrictions under Part I of Exhibit B to the 2000 Deed, to the extent those restrictions may permit uses that would be prohibited by the Covenants, shall be of no further force or effect so long as the Covenants remain in place against the Town Properties. In all other respects those use restrictions and other provisions of the 2000 Deed (including, without limitation, the prohibition on transfers and the right of reverter in favor of Vail Corp under that Exhibit B) will remain in full force and effect. [Balance of page intentionally left blank.] 605356.3 RCFISH f IN WITNESS WHEREOF, Vail Corp and the Town have made this Partial Termination of Protective Covenants as of the day, month and year first above written. THE VAIL CORPORATION, a Colorado corporation By:_ Name: Title: STATE OF COLORADO ) ss: COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this 20_, by as _ of The Vail Corporation, a Colorado corporation. Witness my hand and official seal. My commission expires: Notary.Public [Signature blocks continued on next page] 1 605356.3 RCFISH 2 day of y TOWN OF VAIL, a municipal corporation and political subdivision of the State of Colorado By:_ Name: Title: STATE OF COLORADO ) ss: COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of 20_, by as of the Town of Vail, a municipal corporation and political subdivision of the State of Colorado. Witness my hand and official seal. My commission expires: 605356.3 RCFISH Notary Public a• ~ \ FORFS ~ (so • RT ROq ~ o w~ 0 / ~~ '~/ / ham/' LOT 1 ~' / BLOCK 2, VAIL VILLAGE ~~ / SIXTH FILING \ ry~/~/ ~ •a ~~ \ \ ~~~ryo ~ ~ ~ / LOT 5 ~ BLOCK 4, VAIL VILLAGE THIRD FILING N ~rl 3 ~ ~ Z O ~ ~/ I ~ Q w a' ED ~ tJ / / 1 / / ~1 ~n ~ / / ~ I, \ / ~, w ~~ !J H Or ~ y ° J~ as ~/oII / .J ~ W ~ Z ¢ / M01 O ~jn I~- ~ d J ~ Z n. Z o z3 O U CC HOLY CROSS ENERGY UNDERGROUND ' RIGHT-OF-WAY EASEMENT (RECEPTION No. 728663) '~' (HATCHED AREA) I i TRACT A T VAIL VILLAGE, SIXTH FILING i I i ~ S85'25'37"W - 200.00, - - _ ~ ~ ' i/ ~ / / ~ / / , 504'34'23"E ~ ~ 4~' / , ~ / ~ ~ 50.00' ~ /=,,~ ~585.25~7, _ _ ~ _ 1 45.22' ~ ~ \ I ~=14'25'25" I R=175.00' I - ' - L=44.05 T=22.14' ' LOT 1 -~ P C CH=43.94 ~RP C6=N72'23'21 "W a' LOT 2 I o FOREST PLACE SUB. f ' TRACT X ~ OUTDOOR RECREATION/UTILITIES r7 4.2 6 ACRES r7 co LOT 3 0 Z LOT 4 r L~ Q ~J to Iw I p W z ~ [) ~ i Z ~ ,_ , T O Im ~ z I I ~ ~ p / / t (7 ~ I ~ ~ ~ m o o ~ o ~'- / ~I I I 00 ~~ / ~ ~ 2~~ ~ ~ ~ ~ ~ n ~ ~ TRACT A ~ ~ \,~ / I / I / / VAII/UONSHEM FWSi FILING P.O.6. ~6~ ~~ / ~ / I / / \ ~~N63'S5'01"E / 111.00' 34.03' / / ~ ~ N82'55'01"E - / / ~ i TRACT B ~ ~_ ~ ~ VAIL/LIONSHEAD, SECOND FILING / / _ _ _ ~ _____ L ___ --___- ~ ~' __~' f _.s ,~ ~-- SC,9L~'~ 1"=100' EXHIBIT A o TRACT X -FOREST PLACE SUBDIVISION SfI~'~'T 1 of .Z TOWN OF VAIL, COUNTY OF EAGLE, COLORADO,,"",~:"°~M"^~~:~„M~. flAEAAORAFIDUAA TO: Vail Town Council FROM: Community Development Department DATE: March 16, 2004 SUBJECT: A request for approval of Resolution 14, Series of 2004 that would authorize the Town Manger to modify and add certain protective covenants to Town owned land on an unplatted parcel of land on 601 Forest Road Planner: Russell Forrest DESCRIPTION OF REQUEST Adjacent property owners, represented by Art Abplanalp are requesting that certain protective covenants be modified and added to a parcel of land on 601 Forest Road that the Town acquired from Vail Resorts in 1999. Approval of Resolution 14, Series of 2004 would authorize the Town Manager to make those changes. 2. BACKGROUND On December 21, 1999, Vail Resorts, Inc. transferred to the Town of Vail a portion of unplatted property along Gore Creek and adjacent to the skiway, subject to certain deed restrictions. During the fall of 2003, the Town of Vail was working with various property owners to further restrict the property allowing certain uses and prohibiting other uses. The restrictive covenants that you are acting upon tonight are the culmination of those discussions. These covenants are not part of the Forest Court Subdivision or the Lionshead Urban Renewal Area. This land is zoned Natural Area Preservation and is already dedicated open space. Attachment 2 in exhibit B describes the changes to the covenants that occurred in 1999. Attachment 3 describes the changes to proposed changes to the covenants on this land. 3. STAFF RECO~IIVIENDATION Given the zoning on the land, the existence of wetlands on the site, and the open space designation of the property, staff recommends approval of Resolution 14, Series of 2004. Attachment 1: Resolution 14 Attachment 2: Deed Attachment 3: Proposed Changes in the Covenants Attachment 1 RESOLUTION NO. 14, SERIES OF 2004 A RESOLUTION~AUTHORIZING THE TOWN MANAGER TO EXECUTE AND DELIVER AN INSTRUMENT TO ESTABLISH CERTAIN RESTRICTIVE COVENANTS LIMITING THE USE OF CERTAIN REAL PROPERTY OWNED BY THE TOWN OF VAIL, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail, acting through its Town Council, has determined that there is sufficient community initiative and support for establishing recorded open space use restrictions against certain properties owned by the Town of Vail and conveyed to the Town of Vail by two deeds recorded in the real property records for Eagle County, Colorado, on July 17, 1984, at Book 389, Page 502, and on January 20, 2000, at Reception No. 720888 (the "Open Space Property"); and WHEREAS, a form of "Agreement Establishing Restrictive Covenants" (the "Agreement") is in the process of being prepared and drafted for purposes of establishing the pertinent open space use restrictions against the Open Space Property; and WHEREAS, the Town Council of the Town of Vail finds that the adoption of this Resolution No. 14, Series of 2004, is in the best interests of the Town of Vail and its citizenry. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: 1. The Town Council of the Town of Vail hereby authorizes the Town Manager to execute, acknowledge and deliver, and then record, the Agreement with such terms and provisions as the Town Manager may deem necessary or appropriate, after consultation with the Town Attorney, and with the Agreement to be applicable to all or portions of the Open Space Property as deemed necessary or appropriate by the Town Manager, after consultation with the Town Attorney. 2. If any part, section, subsection, sentence, clause or phrase of this Resolution is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Resolution, and the Town Council hereby declares it would have passed this Resolution, and each part, section, subsection, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, clauses or phrases be declared invalid. 3. The Town Council hereby finds, determines and declares that this Resolution is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. 4. 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. Resolution 14, Series of 2004 1 IRITROD9JCED, READ, APPROVED AND ADOPTED this 16~' day of March, 2004. Rodney Slifer, Mayor, Town of Vail ATTEST: Lorelei Donaldson, Town Clerk 612550.1 RCFISH 03/10/04 2:39 PM 2 3~ Attachment 2 720a~e 0ii2®i~e®0 i2o2iP-319 Sara Ftshsr - -- ' 1 of 7 R 36.00 D 0.00 N 0.00 Earls CO -~~ 7~~ QUIT CLAIM DEED r"G • ~Op`' THIS DEED, Made this 2~ ~ day of~LC 2 ~ f7 eV 199, between THE VAIL CORPORATION, doing business as Vail AssocYates, Inc., a corporation duly organized and existing under and by virtue of the laws of the State of Colorado, Grantor, and TOWN OF VAIL, a municipal corporation duly organized and existing under and by virtue of the laws of the State of Colorado, Grantee, whose legal address is 75 South Frontage Road West, Vail, Colorado 81657, WITNESS, That, the grantor, for and in consideration of the sum of TEN DOLLARS {$10.00},.the receipt and sufficiency of which is hereby acknowledged, has remised, released, sold and QUIT CLAIMED, and by these presents does remise, release, sell .and QUIT CLAIM unto the grantee, its successors and assigns forever, all the right, title, interest, claim and demand which the grantor has in and to the real property, together with improvements, if any, situate, lying and being in the County of Eagle and State of Colorado, described as follows: Parcel 1. Tract B, Vail Village, Twelfth Filing, according to the recorded Plat thereof, County of Eagle, State of Colorado. Parcel 2. Tracts A, B, C and F, Vail Village, Eleventh Filing, according to the recorded plat thereof, County of Eagle, State of Colorado. Parcel 3. Tracts A and D, Vail/Potato Patch, according to the recorded plat thereof, County of Eagle, State of Colorado. Parcel 4. The real property more particularly described on Exhibit A attached hereto and made a part hereof. EXCEPT SUBJECT TO THE RESTRICTIONS SET FORTH ON EXHIBIT B ATTACHED HERETO AND INCORPORATED HEREIN, AND RESERVING QN'PO GRANTOR THOSE MATTERS S]3T FORTH ON EXHIBIT C ATTACHED HERETO AND INCORPORATED HEREIN also known by street and number as: vacant land TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging, or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the grantor, either in law or equity, to the only proper use and benefit of the grantee, its successors and assigns forever. IN WITNESS WHEREOF, The grantor has cawed its corporate name to be hereunto subscribed by its ~1e n ~ or Vic a I'--P~ icj a h""~` and its SKLD LG 172.20.29.20 EG 720888-2000.001 corporate seal to be hereunto affixed, the day and year first above wri.tteh~. ~~ - ~: "~/.+"=_ ~ THE VAIL CORPORATION == ~ ;~ ~ .- ~ a Colora 1do corporat ' on ~'~' ~ . ~ Y ..` N ._-- =' Title : ~„v,.,~.. ~ ..~.~., , ,. ~, ,: - . . S'TAT'L •'OF COLORADO } }ss. COUNTY OF EAGLE } The fore oing instrument was acknowledged before m~ this 29g~ a~~ . 199, by as~,~;,,~- , ~ , ~ rff~G a-~- , of The !~C oration, a Colorado corporation, on behalf of such ~': •~o~of~t n . a ~ ,: ~ ~ NTy commission expires l o Z ~O~O . :~ , ~'~ .~ pV~~`•~o° ~ Witn , my hand and official seal. ''' •.. .•~ ' C, ,~S~ATE OF , • ZZ Notary .Public 111111 lilli IIIINI Il Illtl I{111111 IIIII III IIIII IIII IIII ??0886 01/20/Z000 ~2:21P 3a9 Sarmm FtsheP ~ ®f 7 R 3'~.®®®®.®® ~I ®•~0 ~s~l~ CO S]K]L~ Y.G 172.20.29.20 ]EG 720888-2000.002 EXHIBIT A (ATTACHED TO AND FORMING PART OF QUIT CLAIM EED FROM THE VAIL CORPORATION TO TOWN OF VAIL, DATED ~C gyp, ~2Yo7~ /~j'C~', Legal Description of Parcel 4 (attached) i imu mn ~uim n w~,uix~u ~u m nm Mi im SKLD LG 172.20.29.20 EG 720888-2000.003 D' Illlllllllllilllll 1111111 IIIIIIII IIIIIIII IIIIIIIIIIIII 720888 01/20/24!00 12:21P 319 Sar• Fisher PROPERTY DESCRIPTIOAi 4 ®f 7 R 33.E D 0.00 N 0.00 Ea~l• CO An unp-ntted parcel of land located in the N1/2 of Section 7, Township 5 South, Range 80 4dest of the Sixth Principal, which is bounded on_th_e_ north by Vail/Lionshend, Second Filing, and on the south by Vnl C Vi llag~ - Third ~FtTing, -accoi^dln® to the-daps thereof recorded in the office of the Eagle County, Colorado, Clerk ano! Recorder, snid parcel of land described as follows: Beginning at the northeast corner of Lot 6, Block 3, said Vnil Village - Third Filing, which t$ nlso the northwest corner of Lot 41, Block '7, Vail Vllinge First FllingJ thence the following two courses along. the northerly boundary of said Vail Vllinge - Third Filing• <1) N72°14'00°!~ 575.00 feet, <2> S38°11'43°!1 673.40 feetJ. to the northwest corner of Lot 5, Hlock 4, Bald Vatl Village - Third Filing, which Is nlso the Most northerly corner of Lat 1, Bloek 2, Vnil Viitage, Stith Filingi thence, deporting snid northerly boundaryy, N03°08'38'W 400.45 feet to the ° southerly boundary of Troct 8, Vnll/l.tonshead Second FtlingJ thence the followin ten courses along sale! southerly boundnry~ C1) N82°24'00°E 37.00 feet) C2) N54.34'00°E 72.00 feet) <3) N1fl°34'00°E 252.00 feet) C4> N64.22'00°E 95.00 feet) CS) N88°05'00°E 125.00 feet) C6) S73°36'00°E 188.00 feet) C7) N90°00'00°E 150.00 feet) C8) S49.36'00°E 235.00 feet) (9) S86°48'42°E 179.90 feet) C10) S19°52'38'V 181.57 feet <S19°19'50°H 179.60 feet calculnted)J to the point of beginning, containing 6.302 acres, More or less. Note• Bearings based on record call, Vall/Llonshead Second Filing. This description wns prepared fror- the recorded subdivisions which surround the parcel. Date ~ _ ~/~~-~_-- N 8B°OS'0~ E - 135.00 Od 84°23'00' E - 85.001_ ~ strrsa~oo° E - 73.00 b 83°34'00' E - 37.00 .~ 8 ~'` ~ ~ h ~ ~ LOT O LOT 5 LOT 1 Stan-liog- dt - ~~ Colorado P.L.S. 26598 TRACT B. vAtL / LIOadSHEAD. SECONO fluwc ~'- Y~~ PARCEL g.soa acREs ~ r~, LOT 1 ~~~ 1g. LOT 2 val wLLACE. TMiRO FluNO FJSST - 950.00 179.90 ~~~s~~ BEAVER pAiA y ROAD P.O.B. LOT 6 200 0 200 400 600 Feet S]K7L~ ]C_,G 172.20.29.20 ~G 720888-2000.004 i inm miunui a um uiwii i~ iu nisi iiii im EXHIBIT B (ATTACHED TO AND FORMING PART OF QUIT CLAIM DEED FROM THE VAIL CORPORATION TO TOWN OF VAIL DATED DZC EvN bN' ~~~ /~tCj As USED HEREIN "PREMISES" SHALL MEAN THAT REAL PROPERTY DESCRIBED IN THE DEED.) I. RESTRICTIONS 1. (a) Subject to existing uses as of the date hereof, matters of record and the Reservations set forth in Exhibit C hereof, the Premises are restricted to the following uses: open space, provided, however, that the following uses are permitted: public pedestrian access (including sidewalks, benches, trails, wetlands boardwalks, bridges, landscaping elements, retaining walls and other improvements consistent with such use); utilities and appurtenances; drainage and appurtenances; the construction, reconstruction, creation, installation, enhancement, enlargement and maintenance of wetlands, streams and water courses; recreation activities; and signage relating to ski area operations and mountain activities, and further provided that, with respect to Parcel 3 of the Premises, communication equipment and appurtenances {and buildings containing such equipment), including but not limited to antennas, towers and other communication devices are also permitted. {b) Notwithstanding the use restrictions set forth in Section 1. {a) of this Exhibit B and subject to the Reservations. set forth in Exhibit C below, the Town of Vail may further restrict uses on the Premises. 2. Subject to existing uses as of the date hereof, parking of passenger vehicles (e. g., cars, vans) is strictly prohibited on the Premises. 3. The Premises, and any use or rights of use thereof, shall not be conveyed, granted or transferred to another party without the express written consent of The Vail Corporation. 4_ The Town of Vail shall not seek redress or claims against The Vail Corporation, and The Vail Corporation will not be liable, for any damage or injury to persons, land or improvements within or outside of the Premises caused by, arising from or resulting from high waters of any body of water, including running water, geologic and soils conditions, and other conditions of nature of the Premises. II. REVERSION If the Town of Vail does not comply with all the restrictions set forth in Part I of this Exhibit B, and, upon written notice from The Vail Corporation of a violation of restriction, and, after 30 days the Town, of Vail does not correct such violation, then the SKL,D LG 172.20.29.20 EG 720888-2000.005 o , ., ownership of the Premises, or a portion thereof, will automatically revert to The Vail Corporation and the Town of Vail will execute such documents- as necessary or desirable to effect and record. such reversion. If the Town of Vail fails or refuses to so acknowledge, execute or deliver any such documents within ten days after written demand therefor, The Vail Corporation shall be entitled to acknowledge, execute and deliver any and all such documents for and on behalf of the Town of Vail as attorney-in-fact for the Town of Vail. By acceptance of this Quit Claim Deed, the Town of Vail hereby irrevocable appoints The Vail Corporation as Town of Vail's attorney-in-fact to acknowledge, execute and deliver any and all documents described herein for and on behalf of the Town of Vail. The Restrictions and Reversion set forth in this Exhibit B shall be binding on the successors and assigns of The Vail Corporation and the Town of Vail. . I~INi Ilgl 111111111 II111IlIIIIII 11111111 111111111 IIII 720888 01/20/2000 12:21P 319 Sara FisF~r• i ®f 7 R 3!!•00 ® 0.00 N 0.00 East• G9 SY{]L.D ]LG 172.20.29.20 ~G 720888-2000.006 EXHIBIT C _ _. _ _R$SERVATIONS _ .... The Vail Corporation, for itself, its successors and assigns, hereby reserves perpetual non-exclusive easements on, over, under, across, above and through (i) the Premises for the uses set forth in Section 1 (a)of Exhibit B above and (ii) Parcel 4 of the Premises for the purposes of (y)access (ingress and egress) by pedestrians, bicyclists, skiers, snowmobiles, snowcats, round tire maintenance vehicles, and other means of traverse consistent with recreation activities and maintenance on Vail Mountain, and {z) parking of such equipment and/or vehicles. The Vail Corporation, the Town of Vail and any public utility company shall not be responsible or liable for damage to or loss of any improvements existing on the Premises caused by or arising from exercise of easement rights reserved or set forth in this Exhibit C. I IIIW IIIV NIINI II IIN~IIIIIIII01111011111 NII IIG SKLD LG 172.20.29.20 EG 720888-2000.007 ~tt~charuent 3 A~GI~lE1~1[]EI~T'I' lES'}fARI.ISHII~IG 121ES'TRIC'TIVE C®VEIiIAI~I'I'S (Revised 11 March 2004) This Agreement Establishing Restrictive Covenants is made by the Town of Vail ("Town of Vail"), for the benefit of the Town of Vail and the owners of those properties adjacent to the real property described on Exhibit A hereto (the property described on Exhibit A being the "Open Space Property" and the adjacent properties being the "Adjacent Properties") and which is the subject of these covenants. The term "Owners", wherever used herein, any pronoun used in place thereof, shall include, respectively, these adjacent owners and their successors, and assigns, or upon subsequent transfer of any of the Adjacent Properties, the transferee of such Adjacent Properties. ]l~esitals Whereas, the Town of Vail is the sole owner in fee simple of certain real property in the Town of Vail, Eagle County, State of Colorado, more particularly described on Exhibit A; and Whereas, Owners are the owners ofthe Adjacent Properties, which are adjacent to the Open Space Property; and Whereas, the Open Space Property has important natural, ecological, scenic, wildlife, open space and aesthetic values (collectively "Conservation Values") which of are great importance to the Town of Vail and Owners; and Whereas, for good and valuable consideration to the Town of Vail, the Town of Vail hereby agrees to establish restrictive covenants on the Open Space Property asset forth in this Agreement in order to preserve and protect the conservation values of the Operi Space Property. Aga~eerg-ent NOW, THEREFORE, the parties agree as follows: Il. lPu~-p®se. It is the purpose of this Agreement to assure that the Open Space Property will be retained predominantly in its natural, forest, scenic and open space condition and to prevent any use of the Open Space Property that will impair or interfere with the Conservation Values of the Open Space Property, subject, however, to the uses permitted below. ~. Per~aitteal Uses. Subject to existing uses as of the date hereof, the Open Space Property is restricted to the following uses: a. Open space, provided, however, that the following uses are permitted: wetlands, public pedestrian access (including graded but otherwise unimproved walking paths, rustic bridges and water crossings, but not including sidewalks, benches, improved trails, boardwalks, landscaping elements, retaining walls and other improvements inconsistent with such use), and removal or remediation of diseased trees or plants and any plants or infestations that are noxious or are made a public nuisance bylaw; b. Below grade utilities and appurtenances, including improvements necessary, desirable or convenient for the construction, operation and maintenance of utility services to adjacent or other lands, which may be constructed and maintained through or under the Open Space Property, provided that said improvements shall not cause permanent disruption or alteration to the surface of the Open Space Property that is incompatible with the surrounding natural environment; c. Drainage, drainage facilities and appurtenances; d. The construction, reconstruction, creation, installation, enhancement, enlargement and maintenance of wetlands, streams and water courses, and construction access and activities appropriate for other uses permitted herein; e. The Open Space Property shall be used, held and maintained in good order and condition by the Town of Vail (subject to existing or recorded easements and rights of way) for use at all times as a vacant and undisturbed open space, in a natural condition, excepting only the uses permitted herein 3. Prohibited gJses. Any activity on or use of the Open Space Property inconsistent with the purpose of this Agreement is prohibited. Without limiting the generality of the foregoing, the following activities and uses are expressly prohibited (provided that nothing contained herein shall prohibit pedestrian recreational activities not requiring improvements, such as hiking and skiing): a. Structures. The construction of buildings or structures of any kind, including fences (but excluding bridges and water crossings) is prohibited. b. Retail, Commercial, Industrial, or Residential, . or Access Activity. No retail, commercial, industrial, residential (except as provided in paragraph 2.a. or as may be necessary or appropriate for other uses permitted under paragraph 2. access uses shall be allowed on the Open Space Property. Wildlife Disturbance or Harassment. Harassment of wildlife by people or domestic animals is prohibited. d. Alteration of Watercourses and Topography. There shall be no change, disturbance, alteration, excavation, or impairment of any watercourse or wetland or the topography of the surface of the ground on the Open Space Property, except as expressly permitted by this Agreement. 2 e. Non-native Species. The introduction of any non-native plant or animal species f. Subdivision. The division, subdivision or de facto division of The Open Space Property, physically, or by legal process, including partition or condemnation, or by any other action (including entering into any lease or other agreement) is strictly prohibited. The Open Space Property shall be conveyed only in its entirety, and only as a single pazcel. However, the foregoing shall not limit or preclude the grant of easements over portions of the Open Space Property for uses permitted herein. g. Roads and Driveways. Except as allowed under existing easements, the construction of roads or driveways on or across the Open Space Property is prohibited. h. Off-Road Vehicles. Public snowmobiling or off-road vehicle use on the Open Space Property is prohibited (subject to access necessary or appropriate for other uses permitted herein). i. Dumping. Trash, debris, ashes, sawdust, and other refuse may not be dumped or otherwise disposed of on the Open Space Property. j. Utilities. Except as allowed under existing utility easements, or under any additional utility easements that may be taken pursuant to an exercise of eminent domain or under paragraph 2 above, no new utility transmission lines shall be constructed or allowed on the Open Space Property. k. Timber Harvesting. The harvesting of timber on the Open Space Property is prohibited except the cutting and removal of diseased trees as provided in this Agreement. Raptor Nests. The cutting or disturbance of any trees or other vegetation within 300 feet of any active raptor nest during the nesting season, or removal of any crown trees or over story vegetation within 300 feet of any active raptor nest at any time is prohibited. However, diseased trees may be cut down and removed during the non- nesting season to abate infestations. m. Hazardous Materials. The storage, dumping or other disposal of toxic and/or hazazdous materials or other refuse on the Open Space Property is prohibited. n. Water Pollution. The material degradation or pollution of any surface orsub-surface water on the Open Space Property is prohibited. o. Hunting. No hunting shall be allowed or permitted on the Open Space Property. p. Camping. No part of the Open Space Property shall be used for camping or overnight stays by any person or persons. q. Gatherings.,, No part of the Open Space Property shall be used for any informal or organized public or private gathering or any other act by any person or persons, which may deface, alter, destroy or damage the landscaping, vegetation or aesthetic value of the Open Space Property or litter its surface. r. No vehicular traffic or parking of any kind or nature shall be permitted upon, across or through the Open Space Property (except as allowed for uses permitted herein). s. General Covenants. No use of the Subject Land shall conflict with or violate any provision of the "Protective Covenants of Vail/Lionshead, First Filing, Eagle County, Colorado" as recorded in Book 217 at page 675 of the records of the Clerk and Recorder of Eagle County, Colorado; provided, however, that the foregoing in any case is subject to and will. not limit the uses permitted under paragraph 2. Notwithstanding the foregoing use restrictions, the Town of Vail may further restrict uses on the Open Space Property. 4. Term. These covenants, conditions, reservations and restrictions shall operate as covenants running with the land for the benefits of the Town and the Owners, and shall binding and in full force and effect in perpetlzity, unless an instrument repealing or amending said covenants, conditions, reservations and restrictions signed by the Town of Vail and the Owners as hereinafter provided with reference to "Amendment" has been recorded in the office of the Eagle County Clerk. The term "Owners", wherever used herein, any pronoun used in place thereof, shall include, respectively, the Owners and their successors, and assigns, or upon subsequent transfer of any of the Adjacent Properties, the transferee of such Adjacent Properties. 5. Enforcement: Any deed, lease, conveyance, or contract made in violation of this Agreement shall be void and may be set aside on petition of one or more of the Owners. The breach of any term or condition of this Agreement, or the continuance of any breach, maybe enjoined, abated, or remedied by appropriate proceedings by the Town or any of the Owners. The failure of the Town or such Owners however long continued to object to any violation or to enforce any provision of this Agreement, shall in no event be deemed a waiver of the right to do so thereafter as to the same breach, or as to any breach occurring prior to subsequent thereto. 6. Hold Harmless Agreement. The Town of Vail shall not seek redress or claims against Vail Resorts, Inc., or The Vail Corporation, and neither Vail Resorts, Inc., nor The Vail Corporation will not be liable, far any damage or injury to persons, land or improvements within or outside the Open Space Property caused by, arising from or resulting from high waters of any body of water, including running water, geologic and soils, conditions, and 4 other conditions of nature of the Premises. 7. IEf~ect off ISiging off l[Seve~-saon: The Vail Corporation shall not be entitled to exercise its right of reversion contained in at certain Quit-Claim Deed recorded in the real estate records of the Eagle County Clerk and Recorder at Reception No. 720888 by the establishment of this Agreement, but the right of reversion contained in that Quit-Claim Deed shall otherwise be unaffected by this Agreement. ~, A~nnenclarse~a4: The conditions, restrictions, stipulations, agreements and covenants contained herein shall not be waived, abandoned, terminated or amended except by written consent of the Town of Vail and three-quarters of all Owners, which shall not be effective until recorded in the real estate records of the Clerk~and Recorder of Eagle County, Colorado. Executed this day of , 2004. Town of Vail By:_ Title: ~®II~IDEI~ The Vail Corporation hereby joins in this Agreement Establishing Restrictive Covenants, but solely for the purposes of agreeing to the provisions of paragraph 7 above. The Vail Corporation shall not otherwise be obligated for or bound by the terms of this Agreement in any respect. THE VAIL CORPORATION By:_ Name: Title: 5 C 7 Summer Air Program Agenda March 8, 2004 - 2:00 PM Vail Resorts -Seasons Building General Update o Continental Airlines o United Airlines Financial Overview o Contract o LOC o Escrow Account Continental Air Service Marketing Outline o Air' Service overview o Target Markets o Marketing Overview o Opportunities o Action Plan n. t' Continental Air Service - -Mar-ketin -Outline- Air Service overview ^ Continental Airlines Service ^ 737 Daily service from Houston.(IAH) ^ Starting 6/24 ending 9/12 to be finalized ^ 81 days of operations/flights ^ 124 inbound seats ^ 117 outbound seats ^ Connecting cities (SOminutes or less) TBD ^ Attached are the top cities that will have the highest demand ^ Airplanners will management the yields on the tickets based o Demand ~~ o Marketing l~~°1b ~~~ o History ~\~ n5 ~nTar~et Markets V ~~ .Houston is the top priority ^ 2-3 spoke cites (TBD) U'~'' ~ Second home ~~ owners ~ Current winter guests ^ Local residents Marketine Overview ^ Communications is key ^ List of marketing program to KM ^ No need for advertising in newspapers and magazines in lAH ^ Target the dollars • Past guest • Second homeowners • Winter guest Opportunities ^ Use the "Fly Vail Summer" ^ The website for Fly Vail Sumrrier for businesses (commercial) and the guests (retail). o General Information o Updates o Flight schedules o Logos o Links to airlines for reservations ^ Hotels and Property Management - KM will follow up with Kelli for the list o Website -Logo and links o Brochure -inclusion n ~~ s` o Telephone -hold time message o Email signature lines ° Non-profit organizations - KM will follow up o Bravo o Vail Valley Foundation o Vilar Center o Other non-profits ° Inclusion of brochure in mailings ° Website -Logo and links ° Email signature lines ° Vail Resorts -Including hotel properties, clubs etc. o Web site -Home page- Logo and links o Brochure -inclusion o TV 8 o Email signature lines o Telephone phone -hold time ° Clubs/Organizations o Alpine Club o Vail Mountain o Beaver Creek o Sonnenalp ~ ill~`'East Vail Homeowners Association o Cordillera ° Inclusion of brochure in mailings ° Website -Logo and links ° Telephone phone -hold time ° Email signature lines ° Swift Newspaper (Vail Daily and other communities) o Editorial o Ad trade o Email list o Email signature lines ° Rental car, ground transportation and taxi companies' support in the winter o In vehicle collateral material o Email list o Previous guest mailings o Email signature lines ° Information centers -collateral material distribution ° Banner displays o EGE Airport o IAH Airport o • Specials events ° Website advertising o Yahoo o Orbitz o Etc f ^ Presentations at community clubs, business organizations, second homeowners meetings etc. ^ Past guest in hotels and property management o Email list -updates o Direct mail inclusion ^ Public Relations o Vail Resorts o Summer Vail -Peeples' Ink o Real Estate newsletters o In market event IAH ^ Sales o Chamber o Hotels o Property Management companies o Vail Resorts ^ Presentations -Business groups and governments o Aspen o Glenwood Springs o Basalt o Carbondale Messages Email Signature lures n(~~' "New daily~tst~'737 service summer air service on A~n~rican Airlines starting June 24, 2004. For more information go to www.flyvailsummer.com." Action Plan - ^ Keep the information in the local papers. ^ Integrate the message into the Public Relation campaign and release the information. ^ Print and distribution the collateral material -ASAP. 3~ 3®•U`~ ^ Banners at airport -ASAP. ^ Website update -ASAP. ^ Meeting schedule. lue.~.ll•~d..{ 4~: ovt° !G. . ~®nta~e~taB ®&~® Mar~e4 Housro~ Buses 1 ATLANTA 1 AUSTIN 1 FT LAUDERDALE 1 LaGUARDIA 1 MIAMI 1 NASHVILLE 1 NEWARK 1 WEST PALM 2 BATON ROUGE 2 CORPUS CHRISTY 2 KENNEDY 2 LITTLE ROCK 2 NEW ORLEANS 2 ORLANDO 2PENSACOLA 2 SAN ANTONIO 2 SHREVEPORT 2 TALLAHASSEE 2 TAMPA BAY BALTIMORE BIRMINGHAM BOSTON CHARLESTON CINCINNATI ~c~'~~~ CLEVELAND COLUMBUS GREENBORE GREENSBORO INDIANAPOLIS JACKSON JACKSONVILLE KNOXVILLE LAKE CHARLES LUFKIN MEMPHIS MEXICO CITY MIDLAND MOBILE PHILADELPHIA PITTSBURGH RALEIGH DURHAM ROANOKE WASH DULLES WASH NATIONAL From: "Kent Myers" <kent@airplanners.net> . To: "Tony O'Rourke" <tonyo@vailresorts.com>, "Tom Stone" <tom.stone@eaglecounty.us>, "Steve Pope" <spope@vaildaily.com>, "Scott Gubrud" <sgubrud@destinationhotels.com>, "Robert Dallain" <rdallain@beavepo.hyatt.com>,."Richard DeClark" <rdeclark@attbi.com>, "Paul Gordon" <pgordon@vailvalleyjetcenter.com>, "Paul Cookley" <paul.cookley@ritzcarlton.com>, "Patricia McNamara" <pmcnamara@sonnenalp.com>, "Pat Peeples" <peeples@vail.net>, "Pamela Brandmeyer" <pbrandmeyer@vailgov.com>, "Michael Gallagher" <michael.gallagher@eaglecounty.us>, "Michael Brown" <mbrown@avon.org>, "Ludi Kurz" <ludik@vailresorts.com>, "Linda Hill" <linda@hillncompany.com>, "Laurie Mullen" <Imullen@theresortcompany.com>, "Kristen Moore" <kristen@hillncompany.com>, "Kelli McDonald" <kmcdonald@visitvailvalley.com>, "Johannes Faessler" <jfaessler@sonnerialp.com>, "Jeff Scholl" <jeff@townofgypsum.com>, "Jack Ingstad" <jack.ingstad@eaglecounty.us>, "Harry Frampton" <hframpton@ewpartners.com>, "Gabe Shalley" <gabes@vailresorts.com>, "Frank Johnson" <frank@visitvailvalley.com>, "Deborah Churchill" <deborah.churchill@eaglecounty.us>, "Debbie Roeland" <droeland@vailresorts.com>, "Daren Cole" <DARENC@vailresorts.com>, "Chris Jarnot" <chrisj@vailresorts.com>, "Brian Nolan" <blumoose@rof.net>, "Brad Ghent" <bghent@vail.net>, "Bob Milne" <cobob@cmn.net>, "Blair McNamara" <blair@airplanners.net>, "Arn Menconi" <arn@vail.net>, "Amy Cassidy" <cassidy@vail.net> "AJ Johnson" <a~bj@vail.net> ' Date: 3/9/04 10:23:02 AM Subject: Summer Air Meeting Update BlankHi Here is the update from yesterday's meeting: V~M.c..t~.u.U-~ ~Ju'N~w.v' ~t ~^ The air group is moving forward with the support of the Continental flight from Houston. o Details on contract and schedule should be competed this week o This year's previous pledges totaled $272,000 and there needs to $250,000 in the escrow account before the contract is signed o WTCB will sign the contract. o Escrow account is being set up at Alpine Bank o No charge for the LOC via Alpine Bank Overview of the Continental Program 0 737 Daily service from Houston (IAH) o Starting 6/24 ending 9/12 to be finalized 0 81 days of operations/flights 0 124 inbound seats 0 117 outbound seats Pam Brandmey_er Summer Air Meeting Update ^ ~~ -~~ •- ~ ~"~ ~ ~" "_ `" o Attached are the top cities that will have the highest demand o Airplanners will management the yields on the tickets based • Demand • Marketing • History • Financials o Invoices for the escrow account were passed out to the people attending the meeting -payments are due by March 20th o Other invoices will be hand delivered, emailed and faxed by March 9, 2004 o Finalizing all three government supporters today - KM may need to meet with TOV next Tuesday for an official meeting and presentation o VR needs to work out some details regarding their support • Marketing o An overview of the marketing program was presented -see attached o There are some questions related to the collateral material. Eagle County did print some 4x8 with the AA information only. o Trip to Houston to meet with Continental is scheduled tentatively for March 31, 2004 Marketing group will meet every two weeks on Wednesdays 4:30 starting March 17th -location TBD Sincerely yours, Kent Myers kent@airplanners.net OFF 970 569 3311 FAX 970 926 8690 www.airplanners.net Box 1134 Avon, CO 81620 , Pam Brandmever -Summer Air Meeting Update Paa~ 3 ~ti 3 • ! to • o `f' b~L~uaA.# n s and C® Perfect Connectin4 Cities (Less than 50 Minutes) C® Common Connecting Cities from IAH I~ouston ATL Atlanta AUS Austin BWI Baltimore CLE Cleveland DTW Detroit FLL Fort Lauderdale MCI Kansas City Ii~IA 11~iami I~SY New Orleans LGA New York EWR Newark MCO Orlando RDU Raleigh/Durham SAT San Antonio STL St Louis TPA Tampa ~u4 Common Connecting Cities from ®FW ®allas/Fte Worth ATL Atlanta AUS Austin BWI Baltimore CLE Cleveland DTW Detroit FLL Ft. Lauderdale ICI Kansas City MIA Alliami ~/ISY New Orleans LGA New York EWR Newark MCO Orlando RDU Raleigh-Durham SAT San Antonio STL St Louis TPA Tampa Cities not Common BH~1 Birmingham CVG Cincinnati CnAH Columbus XNA Fayetteville GPT Gulfport IND Indianapolis JAN Jackson JAX Jacksonville LIT Little Rock SDF Louisville iiAEf1~ I~lemphis i~06 i~lobile I~ILU Conroe PNS Pensacola PIT Pittsburgh RIC Richmond YYZ TOPOntO IAD Washington Cities not Common BOS Boston ORD Chicago I~VIDW Chicago IUlidway .:IAH , Houston Hobby X ~ . IAD Houston, Inter X , ; , . _ . s _ NIFE .. AAcAllen BNA Nashville PHL Philadelphia DCA Washington National ZRH Zurich AA ®&® ResuBts Suetaon~~ 20®3 DALLAS _ 7941 0.385 ATLANTA . 416 0.020 AUSTIN -682 0.033 BAL~'IMORE : ___~. __ 166 0.00 8` Cleveland Less than .1 % __ DETROIT 47: a.a02 FT'LAUDERDALE 991: . 0.048 KANSAS C ITY 132 0.006. ' M IAM t 566 " .: 0_o2z NEW ORL--FANS 309. 0.015 LaGUARDiA :1372 o.06z NEWARK 238 > 0.012 ORLANDO ..' 180 0:009 RA1`EIGH DURHAM _ 2z6 0.011 SAN ANTONIO 172 0.008 'ST'LOUIS ~ 298 `~ - 0.04, ~TAMPA_.- _ _ _ 96 0.005 5891 0.285555 BIRMINGHAM 220 0.011 BOSTON 372 0.018 CHARLOTTE 129 0.006 CHICAGO MIDWAY 42 0.002 CHICAGO OHARE 636 0.031 CINNCINNATI 61 0.003 COLUMBUS 96 0.005 DAYTON 64 0.003 FORT MYERS 46 0.002 GREENSBORO 69 0.003 HOUSTON BUSH 688 0.033 HOUSTON HOBBY 271 0.013 HUNTSVILLE/DECATUR 91 0.004 INDIANAPOLIS 103 0.005 JACKSON 101 0.005 JACKSONVILLE 185 0.009 KNOXVILLE 65 0.003 LITTLE ROCK 194 0.009 LOUISVILLE 38 0.002 MEMPHIS 91 0.004 MEXICO CITY 101 0.005 MONTERREY MEXICO 116 0.006 NASHVILLE 384 0.019 NORFOLK 113 0.005 OKLAHOMA CITY 147 0.007 OTHER 1634 0.079 PHILADELPHIA 238 0.012 PITTSBURGH 53 0.003 SAN JOSE COSTA RICA 29 0.001 TYLER 43 0.002 WACO 48 0.002 WASH DULLES 149 0.007 WASH NATIONAL 181 0.009 20630 T®: Town Council 1=R®I~: Stan Zemler, Town Manager .Greg. Hall,_ Public Works Director Dwight Henninger, Police Chief Suzanne Silverthorn, Community Information Officer DATE: March 11, 2004 StJB.9ECT: Quarterly Upate on I-70 Mitigation Measures 1. 13ACKGR®UND On Oct. 21, 2003 the Vail Town Council voted to approve first reading of an ordinance restricting the use of compressed engine brakes on trucks between milepost 181.5 and 173 in Vail, except for the aversion of immediate and imminent danger. The motion to approve first reading of the ordinance also included a provision to delay second reading to allow time for town staff to prepare a list of alternative approaches. The legislation was introduced to call attention to the issue of I-70 noise and to signify the Town Council's intent to take aggressive and proactive measures to reduce highway noise, which has negatively impacted Vail's quality of life and its economic vitality. On Dec. 2, 2003 the Vail Town Council voted to table to March 16, 2004 second reading of this ordinance, directing the town staff to pursue alternative approaches, including a Memorandum of Understanding (MOU) between the Town of Vail and the Colorado Motor Carriers Association (CMCA) (see attached). In addition, the Council authorized the Vail Police Department to spend up to $46,000 for aone-year pilot program for I-70 traffic enforcement and education. The MOU between TOV and CMCA was executed on Dec. 3, 2003. Since December, the town staff has pursued four areas of focus to mitigate I-70 impacts on'a short-term and long-term basis: 1) education; 2) enforcement; 3) engineering; and 4) legislation. A summary of the actions, to date, is presented below. a. PARTIVERSF~@P ACTS®NS A. EDUCATI®~ o In anticipation of the I-70 traffic enforcement campaign to be launched by the Vail Police Department in April, TOV has prepared a public education communications plan with strategies and tactics in the following categories: 1) setting the tone through local awareness; 2) creating real- time notification for the traveling public; 3) creating advance awareness for Front Range guests; 4) working to inform truck driver and motorcycle constituents of speed control and added enforcement of muffler/noise regulations; and 5) coordinating messages with participating agencies to ensure support and participation. Estimated cost of deployment is $5,000 to $8,000. A letter has been sent to CDOT requesting partial funding of this program with Federal Highway Safety funds. • Media coverage has included a preview of the enforcement campaign aired on KUSA-TV Channel 9 on March 4. Additional coverage is yet to come. • CMCA is pursuing $50,000 in grant funding to develop and disseminate educational material in the form of audio compact discs, flyers and aweb- based information program for commercial vehicle drivers who use the I- 70 corridor. Scripts for the "Crossing the Rockies" project are currently being prepared and will be reviewed by the TOV prior to production. Once funding is secured, the project will be deployed within 60 to 90 days. • An I-70 working group for commercial vehicles has been organized and will help serve as an information conduit. TOV will participate in the discussions. • TOV is currently researching implementation of an education campaign to assist individual properties with tips on how to use "sound masking," such as exterior or interior water fountains, to reduce the annoyance from highway noise. The home noise audits will also include information on acoustically rated windows and doors, plus lower-cost alternatives, such as sealing cracks around doors and windows. B. ENFORCEMENT • During the month of February, TOV officers underwent traffic stop training as well as ride-alongs with the Colorado State Patrol for enforcement consistency among the two agencies. The remainder of the patrol staff completed a four hour classroom training session conducted by the Colorado State Patral regarding enforcement of the motor vehicle code as it relates to commercial vehicles. Vail PD also conducted "train the trainer" sessions whereby one representative from each of the Vail patrol teams rode with a Colorado State Patrol trooper and conducted traffic. stops on commercial vehicles to learn about safe methods and locations within Vail to conduct these enforcement actions. The Vail patrol team representatives then instructed and rode with each Vail officer to conduct a minimum of two commercial vehicle traffic stops to demonstrate to the trainer the stop could be conducted safely and effectively. Vail PD Patrols will begin in April and will be augmented by a public awareness campaign. Officers will issue discretionary warnings during the first four months of the campaign, with the exception of egregious offenders. Then, in August, the campaign will evolve into stricter enforcement. • Members of the Vail PD have met with representatives of Quest Technologies, a sound monitoring equipment company, for training on the department's existing sound meters and to discuss if the proposed enforcement techniques and Town Codes are appropriate. Quest felt the department has the proper equipment and laws in place to conduct noise enforcement on I-70. However, it was suggested the town may want to reconsider reducing the existing decibel levels for vehicles on the highway. • Vail PD has urp chased rear facing antennas for the existing radar units for use on the interstate. These new antennas are being installed in the new patrol cars. • A letter from Mayor Rod Slifer was sent to the Colorado State Patrol chief requesting that additional troopers be assigned to the area, as well as a request to work collaboratively with TOV in implementing the memorandum of understanding between TOV and CMCA. Similar communication has been undertaken by CMCA. o TOV has arranged a meeting with its partner agencies on March 24 to outline the program and enlist support. Representatives from CSP, CDOT and CMCA will be in attendance. C. EIVCIiVEERBNC o In Februrary, TOV met with CDOT staff to review the town's multiple requests (outlined in an earlier letter) for short-term and long-term noise mitigation. CDOT has officially responded and has committed to: 1) assisting in the coordination of the town's summer demonstration project; 2) analyzing the use of alternative (quiet asphalt) pavement treatments to be used for the I-70 overlay scheduled and budgeted in 2008; and 3) to investigate the use of speed limit warning signs. o Also in February, TOV issued a request for proposal for noise mitigation services. The RFP indicated the town's desire to analyze existing highway noise impacts and to develop noise mitigation alternatives. Proposals were due to the town on Feb. 17. There were 5 responses. Three finalists were selected with interviews conducted Feb. 27. The town staff has selected Hankard Environmental of Ft. Collins to conduct noise analysis before and after the speed enforcement campaign; design and conduct a noise barrier test demonstration project in conjunction with the Colorado Motor Carriers Association for this summer; investigate new and innovative technologies and appropriate solutions; and prepare applications for federal discretionary funding for an innovative demonstration project. The staff is reauesting Council action to approve up to $90 000 to enter into a contract with Hankard Environmental. Funding for this project is contained in the 2004 capital projects budget. (Scope of work is attached). o TOV proposes to work with Hankard Environmental to produce a proposal to be used to introduce the concept of a noise wall . demonstration project to be presented to Colorado's Congressional Delegation. Once the proposal has been developed, CMCA has agreed to work with the TOV to develop a lobbying strategy for $1 to $3 million in federal funding. ®. D.EGISLATIION o At the request of the Colorado Motor Carriers Association, TOV is preparing a letter to the Colorado Municipal League asking for assistance in exploring the development of state legislation which could provide for increased penalties for failure to maintain or alter a muffler. 3. STAFF RECOflAMEN®AT9ON Staff recommends the following Town Council actions on March 16: 1) Authorize the town manager to approve up to $90,000 to enter into a contract with Hankard Environmental for noise monitoring and mitigation services; 2) Authorize the town manager to continue with the alternative actions outlined in the Memorandum of Understanding between the TOV and the Colorado Motor Carriers Association; 3) Table or reject second reading of Ord. No. 28, Series 2003 (engine brake ban); 4) Schedule date for next quarterly review. Attachments --Memorandum of Understanding between Town of Vail, Colorado Motor Carriers Association --Proposal from Hankard Environmental lnc. --Ordinance No. 28, Series 2003 r ORDINANCE 28 SERIES 2003 AN ORDINANCE PROHIBITING THE USE OF DYNAMIC BRAKING DEVICES ON A CERTAIN SECTIOi~ OF INTERSTATE HIGHWAY 70 WITHIN THE TOWN OF VAIL AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, it is the desire of the Town Council of the Town of Vail ("the Town") to mitigate and reduce the making and creation of excessive, unnecessary and unusually loud noises caused by dynamic breaking devices on Interstate 70 within the Town of Vail; and WHEREAS, it is the Town Council's belief that the noise associated with the engagement of dynamic breaking devices is unreasonable in its time, place and manner, and that such noise is detrimental to the public health, welfare, comfort and safety of the residents of the Town of Vail; 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 adoption of this ordinance. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section ~. Section 5-1-1 "DEFINITIONS:" of the Municipal Code of the Town of Vail is hereby amended by the addition of the following definition: DYNAMIC BRAKING DEVICE: A device used primarily on trucks for the conversion of the engine from an internal combustion engine to an air compressor for the purpose of braking without the use of wheel brakes. Sectioin 2. Section 5-1-7 G "MOTOR VEHICLE NOISE:" of the Municipal Code of the Town of Vail is hereby amended by the addition of sub-section four (4) as follows: 4. Operation of a Dynamic Breaking Device: Notwithstanding any other provision of this Title 5, it shall be unlawful to operate any motor vehicle on Interstate 70, between milepost 181.5 and milepost 173,. within the town limits of the Town of Vail, Colorado, with a Dynamic Braking Device engaged, except for the aversion of immediate and imminent danger. Ordinance 28, Series of 2003 Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions .of~ this ardinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 5. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. Ordinance 28, Series of 2003 i INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 21st day of October, 2003 and a public hearing for second reading of this Ordinance set for the 4th day of November, 2003, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Rodney Slifer, Mayor Attest: Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 16th day of March, 2004. Rodney Slifer, Mayor Attest: Lorelei Donaldson, Town Clerk Ordinance 28, Series of 2003 /' en~orandurn of Understanding between the Town of Vail and the Colorado Mlotor Carriers Association This emorandum of Understanding is entered into on this c3 day of 2003, by the TOWN OF VAIL, a Colorado municipal corporation, hereinafter referred to as ("the TOV"), and the COLORADO MOTOR CARRIERS Association, a Colorado non-profit corporation, hereinafter referred to as ("the CMCA"). WITNESSETH WHEREAS, the TOV and the CMCA recognize that there are quality of life and economic issues for Town residents and guests due to the proximity of the TOV to Interstate 70; and WHEREAS, the TOV and the CMCA believe it is prudent to take amulti-faceted approach to mitigate noise and other issues through a partnership; and WHEREAS, the TOV and the CMCA agree to move forward in the areas of education; enforcement and engineering to the best of their abilities and in a spirit of collaboration and cooperation, toward mitigating noise on the I-70 corridor through Vail; and WHEREAS, the TOV and the CMCA, working together, can employ their combined resources to leverage Federal and State assistance toward that end. NOW THEREFORE, the parties agree as follows: ~ducatioll~ Mountain IDrlving Educatiion-program CMCA and the TOV will cooperatively work on an information program with trucking companies utilizing the I-70 corridor to ensure safe driving. The program will emphasize the importance of speed compliance, use of chains and the appropriate use of engine brakes. Additional involvement by the Colorado State Patrol and Colorado Department of Transportation will be encouraged and efforts to add a `dour speed is" radar display component to the variable message signs at mile marker 177 and 173 will be pursued by both parties. CMCA will work with the TOV to expand its trucker education program to include brochures, CDs and other materials which will better inform drivers on how to safely operate through the mountains. The CMCA will assist toward the education component and will join the TOV in working with state and federal agencies to procure additional funding for this effort, if needed. ~nf®rce~nent Bncreased Speed Enforcement CMCA a nd t he T OV w ilt work together a nd a dvocate greater a nforcement o f e xisting speed limits by the State Patrol and the Vail Police Department for all vehicles on I-70 through the area. Both parties shall make a formal request to the State Patrol for greater enforcement activities. Increased Enforcement of Current State Law Requiring Mufflers on Vehicles with Engine Brakes CMCA and the TOV will seek greater enforcement of the existing state law which requires that trucks with engine brakes Qake brakes) have mufflers. This law provides a $500 fine for any fraack with an engine brake and not having a muffler. Both agencies-with ask the Ports of Entry staff at the,Dumont and Loma (near Grand Junction on I-70) Ports of Entry to strictly enforce this law. As part of this effort, town officials will seek to effectively enforce the state law on local roadways and job sites within the TOV. Further, CMCA and TOV will ask that roadside safety inspectors include a check of the muffler as part of their safety reviews on trucks. Engine Brake Muffler Legislation inOther States The Colorado Legislature with the assistance of CMCA was the first state in the country to pass a tough measure citing trucks without a muffler and possessing an engine brake. CMCA h as w orked w ith i is a ffiliates i n o ther s tates for, p assage o f a s imilar m easure which will further reduce the numbers of loud trucks passing through our state. Already, R~9ontana and Nevada have passed) the same law and several other states are considering it. As part of this agreement, CMCA agrees to work with its affiliates in other states for the passage of this measure requiring mufflers on trucks with engine brakes. Investigate Legislation Regarding Failure to Maintain or A-Iter a Muffler Current state law provides a nominal ($15) fine for vehicles which may not possess a muffler or have a faulty muffler, both contributing to significantly high noise levels. Under this MOU, CMCA in conjunction with the TOV will explore the development of state legislation which could provide for increased penalties for failure to maintain or alter a muffler. T his legislation would apply to all vehicles (automobiles, m otorcycles, trucks, etc.). Engineering Noise Monitoring CMCA will seek to obtain a noise meter for the TOV to measure noise levels on I-70 as well a s within t he c ommunity. TOV, w ith t he c onsent o f C MCA, will seek third p arty technical assistance to establish baseline measurements for noise levels associated with various t ypes of v ehicles w ith t he i nl:ent t o d evelop a n e nforceable m aximum d ecibel standard. The third party will also work with the TOV to ensure that staff is trained in the proper u se o f s uch meters. In a ddition, the t hird p arty s hall c onduct s cheduled n oise tests to evaluate the ongoing effectiveness of all mitigation efforts.. CMCA and the TOV agree to work on this effort and will rneet with the third party to agree on the scope of work and the duration of measurements. Pilot ®ecibel Reduction Project Using the research identified above, CMCA and TOV will jointly evaluate whether a maximum decibel standard for all vehicles passing through Vail could be developed based on EPA noise standards for trucks and other vehicles. Any decibel-oriented ordinance would apply to all vehicles on the corridor. Teonporary Noise Barriers TOV and CMCA will explore the use of temporary noise barriers (trailers) as a 30-day experimental program to measure r~oise reduction impacts prior to construction of permanent noise barriers. This program will use the T-Rex noise abatement actions as a model. CMCA will seek the necessary trailers for this project. The TOV will assume liability for these trailers while in use during the experiment. 2 N®lse Wall F~urodingl CMCA will work with TOV to begin discussions with state and federal officials to seek funding for a phased noise wall program. CMCA along with TOV officials will meet with state and federal officials to explore various avenues for funding. IVatl®na0 ResearcB~ CMCA agrees to pursue with the American Trucking Associations a study on overall noise levels associated with trucks and measures that may be taken to mitigate such noise. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be made the day and year first above written. ~olorad otor Carriers Association TOWN OF VAIL, a Colorado A or non-pr,~fit-eefporation municipal corporation D. Fulton, President n Zemler, Town Manager 3 A~ ~ l The highest quality noise and vibration conszrlting - ACOUSTICS AND VIBRATION CONSULTING services in the Rockv Mountain Region. ~~, - ~ ~~ ~w r ~ _ ~,~ Defining the Issues: ~~~ -------- Noise and vibration problems can be complex. We are specialists in this ' "" field, and will first work with all project stakeholders to develop a work ~ ~-_ - plan that will meet the goals of the project. We have the experience to ,.~,;~. - effectively communicate with diverse groups such as agencies, the public, ' ~` ~'~~.~ ., ~ ry - o J~--Y „ r. other engineers, and marketing staff: - _.:. r Measurements: -------- If measurements are required we have a full line of equipment at our ,, w disposal and can tackle any measurement survey, large or small, near or ~y~ +~ ~~~ ~ ~ , ,^ ~ ~`; far, simple or complex. Measurements are not always necessary. We ;; r~~~. ~~~.~x ~', will help you decide if they are_approp..riate for„your project,_ x r#: ~ ~. I ~~ ~' ~ `" Modeling: ~. _ ~ ~` 1J ^~ -------- Modeling can be an effective analysis tool either in conjunction with ~ .. , ~~, _: ;' ~ t 6~, measurements or at times without. We are versed in the use of STAMINA. and TNM for highway projects, Federal Transit Administration ,, - methodologies for rail projects, ISO'models for industrial' sites, and modal ~~ may. - .:%~_ . ~, ' analysis. We can apply modeling to'a wide range of projects including ~''"~''•'`~K~ industrial, mining, aircraft, product development and arc}iitectural. ® Mitigation Design: -~-, ~ We design effective mitigation solutions including source treatments for ® products and equipment, bamers, and enclosures. We understand an ® optimum solution requires a balance of issues such as cost, weight and space. We work with our customers;to produce a viable solution. Compliance: -------- V1%e sort out the dB(A}'s From the VdB's and determine your compliance with project specifications or government regulations. We are familiar with a wide range of noise and vibration regulations on federal, state and local levels. Presentations: -------- Our specialty. We can deliver the results of our studies in layman's terms to large or small audiences. Also, we produce the highest quality technical ~°~ ~myat~°^ R~'~ reports tailored to your needs. b d Expert Witness Testimony: ~# -------- We have a solid technical background and courtroom experience. Satisfaction: 4 ® -------- Almost all of our customers are repeat customers because we deliver tt on every project. .s s ,~> ~ $ ,~ ~ ~ 4 ,~ ~ ~ ~ ~y ~, ~ ~, r info@hankardinc.com ~ 19 Old Town Sqtiare, Suite 238 ~ Fort Collins, CO 80524 ~ 303-666-0617 ~\: Our Clients Engineering Firms Carter Burgess CH2M Hill Felsburg Holt & Ullevig J.F. Sato & Associates Kumar & Associates Miller & Associates Parsons Transportation Stone and Webster TranSystems Turner Collie & Braden URS Corporation Washington Infrastructures Wilson & Company Developers Environmental Consulting Firms Air Sciences Enright Technologies ER.O Resources JBR Environmental Srnith Environmental SRK Consulting Su,gnet & Associates Water Consult Colorado Cities and Counties City of Colorado Springs City of Denver City of Greenwood Village City of Lakewood City of Littleton City of Thornton El Paso County Arapahoe County The Colorado Department of Transportation All six Regions Office of Environmental Services Carma Colorado Coughlin Associates Denver Wests/Mills Corporation Forrest Park/Stapleton Redevelopment Authority General Investment and Development J.D. Collins Lowery Redevelopment Authority Opus Northwest Pedersen Development Our Pr®j~cts i-70 Mountain Corridor PETS Homeowners Groups Cherry Hils Various individuals .Denver Regional Transportation Ditrict SW Corridor 30th St. Station Private Industry UDOT and Utah Cities UDOT Regions 2 and 4 City of West Jordan City, of Taylorsville Iron.County Architects Odell Architects PEH Architects Air Liquide America American Gypsum Associated Air Center Bowie Resources Centenial Paving Evergreen Resources Pepsi Center/City Lights Rio Tinto Southeast Comdor Constructors Colorado Mills Mall City Lights AmpithE~ater i-25 Through Colorado Springs Tallyn's Reach Residential Development JILA Labs at CU Southwest Corridor Light Rail Centennial Pavilion Retail Center T- REX Green Ridge Glade Resevior Raton Basin Coalbed Methane SH 9 Frisco fo Brekenridge Powers Boulevard I-70 Mountain Corridor PEIS ~ANKARD ENVIRONMENTAL ACOU571C5 AND VIBRA71ON CONSUl71NG info@hankardinc.com 19 Old Town Square, Suite 238 Fort Collins, CO 80524 303-666-0617 ~~ p p p 9 7I'~wi~ ~~ ~AII. I~®ISE IVIIT'IGA'I'I®l~T February 2004 W® '~'1~SI~S ~., li~geasure Change in Noise f.evels Resulting From Increased Enforcement We understand that the. Vail police department will be conducting a speed reduction campaign consisting of increased monitoring, as well as education for truckers. Certainly, it is the hope that this effort results in a long-term reduction of speed, thus increasing safety and decreasing noise levels. To determine the effectiveness of the campaign in reducing noise levels, measurements will be conducted before, during, and after the increased enforcement effort. In our experience, one week is the minimum length of time needed to determine a given noise condition. A greater length of time provides more statistically relevant data. We propose that noise levels be measured over the course of one month. During the first 1/3 of the month, police will execute normal enforcement practices, and the measured noise levels will constitute the baseline condition. During the second 1/3 of the month, the police department will conduct their increased enforcement efforts, and the measured levels will reflect the resulting decrease in speed. During the last 1/3 of the month, the police will revert to normal enforcement procedures, and the measured noise levels will provide some indication of the long-term effects of the program. . We recommend that noise levels be measured in two areas, One near where police are conducting surveillance, and one "downstream' of this position. In addition to the noise measurements, we recommend that traffic tubes be placed on both eastbound and westbound I-70 in each noise measurement area to obtain concurrent traffic volume, speed, and truck percentage data. Without this information, the changes that are measured in noise levels cannot be necessarily attributed to the speed reductions (they may be the result of normal speed, volume, and truck mix fluctuations). Also, the speed data will be valuable in its own right. Finally, a meteorological monitoring station will be set up to record wind speed and direction, temperature, and relative humidity. . The measured data will be reduced as follows. First, all noise level data measured during adverse weather conditions will be eliminated. 'Then,. the noise level data will be normalized to eliminate the effect of changes in traffic volume and mix. Finally, the before, during, and after levels at both locations will be compared to determine the program s effect. The results will also be compared to the measured changes in speed. We will coordinate with the police department in this effort. We recommend akick=off meeting to discuss the police department's proposed efforts, get their input on enforcement locations, and visit the site to discuss details. The deliverable for this task will be a technical report. The report will provide an aerial photograph of the study area showing the locations of measurements and police enforcement, all of the measurement data, a description of the data reduction procedures, and a summary of conclusions. -G- ~1 ~ TOWN OF VAIL ItTOISE MITIGATION ]rebruary 2004 2. Measure Effectiveness Of Existing Wall and Berms As part of Hankard Environmental's work on an ongoing CDOT-sponsored research effort, we recently conducted detailed noise measurements and analysis at one of the berms along I-70 in Vail. We will incoxporate this information into this study. Secondly, we will measure the effectiveness of the wall at the east end of Town. The most accurate .method of determining this is to place two meters at a certain distance from I-70, one meter being located directly behind the wall and one being Iocated well beyond one end f h o t e wall. This way, all variables except the.presence of the wall are constant, particularly. traffic parameters. We may need to adjust the method somewhat due to the complex terrain in the immediate vicinity of the wall, which introduces other variables. We will measure noise levels over the course of one day, taking measurements at approximately 3 locations behind the wall, as well as at a control location. We will reduce the data and report on tJ'-e effectiveness of the wall. We will coordinate with the Town for access onto private property. The results of the measurements and analyses will be summarized in a technical report, complete with graphics showing the site and the measurement locations, measured levels, and a summary of conclusions. Also, we will conduct high-quality, level-controlled audio recordings and post processing. These recordings can be played back over a sound system to demonstrate the effect of the wall. 3. Conduct Temporary Noise Wall Demonstration The purpose of this effort will be to demonstrate how much noise reduction a wall will achieve given the complex terrain in Vail. The first task will be to conduct akick-off ® meeting with all interested parties to discuss potential locations for the project. The location will be determined after consideration and investigation into the following: ® areas with highest noise levels, highway safety, constructability and cost, logistics, and the ability of the site to demonstrate the effectiveness of a wall in varying terrain. The length of the wall will be dependent on the noise reduction desired at the furthest location from the wall. The wall will consist of either ~50 foot-long truck trailers parked ' end to end (with all gaps sealed ), L-panels (aka Vaughn Walls), lightweight panels fixed atop standard jersey barriers, or equivalent. After an initial meeting and field tour, the team will investigate the issues associated with each alternative the project deems feasible. A second meeting and round of investigations will take place once one alternative has been selected. 4Ve will then work with other parties to facilitate the ® effort, including: ^ Interfacing with and helping to secure permits from CDOT (temporary easements, safety plans, etc.) ^ Facilitating with the CMCA ® ^ Conducting any required structural calculations (e.g. wind loading) ® ^ Conducting a before and. after noise and audio measurements at approximately 4 locations to determine the effectiveness of the demonstration -7- ~: ~ 7~'~wl~ ~~ VAII. ®ISE I'g'IGA'I'I®1~ February 2004 4. Evaluate Available l~Toise Mitigation Measures There are three ways to mitigate any noise problem: reduce the noise level of the source , provide a barrier to noise propagation, andjor insulate the receptor. Source control items that will be investigated as part of this project include: ^ Vehicle Emissions. Mufflers, emission levels, regulated an a Federal level -see Item 6. ^ Pavement Type. This is an important issue across the country and abroad that is undergoing research and debate. The issues at hand are a) How much noise reduction is provided?, b) Does the noise reduction last for years or dissipate with time as the pavement ages?, c) What is the cost of the specialized pavements?, and d) Will the pavement physically stand the test of time? Hankard Environmental has been researching and conducting tests on this issue for years, and will summarize the status of ongoing research with regard to noise reduction and its longevity. Yeh and Associates will summarize the cost and durability issues. C-ur findings will be provided in a summary report with references. ® ® Barrier issues to be investigated include: ® ^ Walls. We will investigate the various wall types and aesthetics that would be appropriate for Vail, and investigate possible locations for the demonstration project. After initial investigations and consultations, we will provide pictures ® and renderings of three promising walls, and a list of pro's and cori s for possible ® sites (constructability issues, noise issues, etc.). We will then facilitate a meeting to discuss the alternatives, choose a preferred alternative and location. Finally, we will provide conceptual design drawings and a cost estimate for the chosen alternative ^ Berms. We understand that Vail has exhausted all berming opportunities and we will not address this further. ^ Cut and Cover. This is the acoustically superior mitigation measure, with its attended costs and other ramifications. We would be pleased to investigate this issue for Vail, but that is not included in this proposal. Insulation issues to be investigated include: ^ Building codes. We will review the sound isolation requirements for buildings in Vail, and provide recommendations as to their sufficiency for construction of residential dwellings adjacent to I-70. 8 i~ .~ ~ TOWN OF VA]:L NOISE MITIGATION r February 2004 i i ® 5. Prepare Proposal For Funding of Mitigation Demonstration Project A meeting will be held to select one of the three candidates for submittal to the Colorado ® Congressional Delegation (CCDI. Based on this selection, the team will prepare a i proposal for submittal to the CCD and Federal Highway Administration (FHWA). , Members of our team are experienced in preparing requests for Federal discretionary funding. The proposal will include sufficient detail to respond to FHWA requirements on the submittal of requests for demonstration projects. In concert with the TOV, coordination with FHWA Colorado Division staff will also be accomplished to secure i the FHWA Division s support of the request for discretionary funding. Coordination i with CDOT Region 3/Headquarters staff may be necessary to conform the proposal to allow inclusion in a larger CDOT discretionary request package, if that is the case. It is also possible that coordination between the TOV and. the Colorado Transportation Commission may be necessary to support the request. At this time man-hours are not included for this assistance, but members of our team can be made available on an as- r directed basis to assist TOV. 6. Provide Recommendations For Increasing Effectiveness of Town Noise ®rdinances We will review the Town's current noise ordinances pertaining to vehicular noise and provide recommendations as to the practicality and effectiveness for achieving additional noise reduction. 7. Presentation of Results Our team will facilitate one public meeting in Vail at the conclusion of all measurements, analyses, and investigations to present the results of the study. Graphics and other presentation material will be provided. Also, an audio demonstration will be given where the noise reduction provided by existing and proposed mitigation will be simulated over a sound system. ® -9- _~. Art In Public Place AIIII~I~ cC®I~dlnlrn~t®It°o Leslie Fickling AIIIE~I~ I~®~°~1 PV1Ic~l~n~~T~~o ~'cea°~ns~o ~Il`1ZI~IlC~~IlII~1~ ~~1Il~ Barbie Christopher 2004 ~'O~T IlIl`~~C~~I~°~1~Il1r11~ Tracy Morrison Gordon Alan Kosloff 2005 2®®~ ~ ~~~ ~~~ ~ Kathy Langenwalter if 2003 Jenn er Mason 2005 ®~ ~1Il~ IlII~l~® ®LIIlI~ Robert Matsuda 2®®5 o C~®Il~IlI`~11L111I1~1Il~ Gussie Ross Nancy Sweeney 2®06 2®®6 Kyle Webb 2®®~ (C®~c~IlIl R~~Ip~~~~n~~n~c~o Diana Donovan ~IE~ R~~~~~~>rn~tIl~vc~o George Lamb Artist, Kate Petley, was on site to stamp and hand-color the Aspen leaves in the concrete patio at Donovan Park Pavilion. 1309 Vail Valley Drive Art in Public Places Vail, Colorado 81657 970-479-2344 Fax: 970-479-2166 ~°i~ Ilfl71 ~~~~IlcC I~~~EC~~ ~E~~IC° ILB11 11~~~It~~y ~®®~ The Art in Public Places program would like to familiarize you with its recent accomplishments. With the support of the Town Council, AIPP has been able to explore a design solution for the cluster of signs on Vail Valley Drive, investigate seating options for our parks and look for a way to enhance the alpine atmosphere of the village. Our funds have been used to explore a design solution for the crumbling bus shelter at the base of the parking structure, bring a storyteller to Ford Park, and publish a brochure which serves as a walking tour guide to the town's art collection. In 2003 the AIPP Board of Directors completed art projects which had been in the planning stage for several years. At Donovan Pavilion the concrete patio was stamped with oversized aspen leaves that the artist hand colored. Two functional sculptures were installed in the Donovan Park playground. We have hired artists to work as part of the design teams for the Village Streetscape improvement project, Meadow Drive, and Pirate Ship Park. In Ford Park we went through the planning process, solicited donations and started the initial work required to convert a dilapidated building into a studio where the public could see art in the making or art classes could be held. ~ _ The annual summer exhibition in Ford Park featured five Colorado artists. To introduce the sculpture to the public we invited a story teller to craft tales around the sculptures. Both the artists and listeners enjoyed this very different approach to interpreting artwork for the public. Once again AIPP sponsored a student art contest. Designs by the winning artists will be reproduced on TOV cardboard trash cans and are pictured on the front cover of the town's budget report. Art contests for school children have been a vehicle to familiarize young people and their parents with public art. AIPP is also in the process of producing a coloring book featuring town sculpture. It will be distributed at the farmers market this summer where we will also be selling manhole covers. With the continued support of the Town Council, the Art in Public Places Program looks forward to serving the community well into the future. ~~~ RECYCLED PAPER Deer Migration Fence Inspired by Henri Matisse's bold cut-out collages, Barbara Baer created the design for Vail's Deer Migration Fence along I-~o. The fence, located on a migration path, helps humans & wildlife co-exist. TME~VAIL-DgI~.y Saturday,,biay24, 2003 Vail's fun fence Bikers, hikers, deer and elk all benefit from a new tarp on Dowd bike path Bg Matt Zalaznick DAILY STAFF WRITER The inspiration of French post- impressionist painter Henri Matisse is helping local bicyclists co-exist with the deer and elk herds that migrate every spring to Vail Mountain. Indeed, Matisse was the inspi- ration for the bright green and blue tarp hung on the sides of a bridge on the bike path leading from West Vail to Dowd Junction. In the spring, deer and elk migrate under the bridge to their summer ranges on Vail Mountain, Vail Pass and Shrine Pass. Without the tarp, local wildlife officials say, the sight of bikers and pedestrians frightens the ani- mals from migrating. No sight of humans They actually are bothered by the sight of humans but not the roar of cars and trucks speeding above on Interstate 70. Without the tarp, wildlife offi- cials also might have to close the populaz path during the spring, just when many locals are taking their first post-ski-season bike rides, says Ellie Caryl, trails plan- ner for Eagle County Regional Transit, which manages that stretch of path with the town of Vail. "Because the tarp allows the deer to do their thing, it also allows the path to be open sooner ~d Because the tarp allows the deer to do their thing, it also allows the path to be open sooner for humans to use it: ' Ellie Caryl EAGLE COUNTRY TRAILS PLANNER for humans to use it," Caryl says. The path used to open in the early spring but then had to be closed again until mid-June while the animals passed under the bridge. Studies done by wildlife officials have shown the deer migrate freely when people aze not on or azound the bike path. The animals' journeys were inter- rupted, however, when they saw humans. "The experiments showed when they see humans they back off and don't go through the tun- nel at all or they get scazed," Caryl says. "The tarp should keep them on their migration path without any stress:' With the tarp, the path can be open as soon as the snow melts and the pavement is cleared. Because the tarp can be taken down after the migration, it should last many yeazs, Caryl says. "It's a good solution, short of having an expensive covered bridge," Caryl says. Bikes off the freeway Closing that stretch of bike path would force bicyclists onto the freeway, which is an unwel- come prospect considering that season's volatile and slippery weather, local riders says. The tarp was designed by Denver artist Bazbaza Baer, says Leslie Fickling, Vail's public art coordinator. "There was a feeling it should- n't stick out," Fickling says. "We didn't want purple or magenta, we didn't want to stop traffic, but we still wanted to attract some attention:' That's where Matisse comes in - especially his lazge, co]orful cut-outs. "We didn't want to do any- thing too controversial," Fickling says. "We thought big, bold splotches of color wouldn't offend anyone:' To blend with the surrounding canyon, the side of the fencing facing Gore Creek is blue and the side facing the highway is green, to match the mountainside, Fickling says. The path starts in the Intermountain neighborhood of West Vail and then winds along Gore Creek and over the Eagle River, where it ends alongside U.S. Highway 6 in Dowd Junction. This summer, construction should begin on the first phase of a recreation path that will run all the way from Dowd Junction to Avon. Mart Zalaznick can be reached at 949-0555, ext. 606, or via e- mail at mzalaznick@ vaildaily.com. Vail Daily/Melinda Kruse Migrating with an impression of Matisse: Vail bike path users are shielded from shy wildlife by a tarp, designed by Denver artist Barbara Baer. The deer fence, located in Dowd Junction, was commissioned by the Vail Arts in Public Places Commission. Ford Park Sculpture Exhibition Contributing to the civic pride of our comunity AIPP's Annual Sculpture Exhibit in Ford Park: Entertains and educates Peoples Choice Award Meet the artist Watch the installation process Enhances artist's professional reputations An attraction for locals and visitors alike. ^ THE VAIL DAILY 970.949.0555/vaildaily.com ART IN PUBLIC PLACES Friday, July 4, 2003 -Page D 5 y ` f M E X I C A N F O O D ~r HILA1VGp G s TRY OUR MOLCAJETES: ~, BEEF & SHRIMP CHILE RELLENOS T00! • ENCNILAPA$ • CHILAOt11LES • POIOLE • MOLCAIETE$ •~ • TAMALES • Tacos •HOUSE GUACAMOLE • SALSAS • a ` OPEN EVERY Dar ~ IO:9O AM•ZPM LUNCN • $rM•IOPM DINNER 45S MAIN STR[R • MINTURN • 627-5344 ~ 1 ~: .:, , .~ ~~~~~~ 2w 1970 IZOt K1gFlt5! Cool Dining! 9oin as for a neu+ sammer mena to oar f~IT-CO nl~l f10 ni Kg Jiving room Daily Special 4 Course Dinner $25 Gia c+r Luc ?Keyer an~Clef Senn-;~[irfie[ ,Serving ~reneh/SKediterranean Cuisine Open 6:00 p.m. • Closed Wednesday For Rnervation CoII 476.16% after 1:00 p.m. 183 Gorc Creek Drive • Varl VO]nRe THE VAIL DAILY 970.949.0555/vaildaily.com CREATIVE WOOD WORK KUDOS: Beaver Creek receives a Silver Eagle for envir~nmentai nra~ti~Pc Wednesday, June 11, 2003 -Page A9 [i.-a.~r liquors /i; Spot li;uil p., ,, . --_ _ Over "go" ~- Under " 30'~ Wine Tasting ; ,11i,; • '[ucsday, lone 17th, 5-'pm You will have the opportunity ro rastr nines rated Ol'ER 90 by Robert Parker or Wine Spectator, that are UNDER 530 The cost is S40 and includes wine and appetizers. Reserve your wine glass by calling Sweet Basil at 476-0125 // ~~fjLest- // Qom- tis*-e A "female only" wine tasting series presented by Beaver Liquors \lnnday, lone 16th \londay', lulu lath Vista ltLStaurant. A~'on Apperi.-rrs will Ge served larkspur. ~:~il Mbulmrs wurrpliug of S:OD pm Anrcrcian :Irfixur Cheeses arveJ Frv Chef Almnf 5:00 pm ~ ~londa} \ rgutt 1Rth - Frendr press. Edwards .A f~ire•anvsc meal prcpnmd G}' Chef :INgn/ic. udll Ge pnirrd ,crth ~rppropria(r trine. Special to the Daily li The town of Vall's Art In Public Places is sponsoring a summer sculpture exhibklon in Ford Park. Flve sculptures will be on display. Mintum artist Jlm Cotter is again taking part, along wkh four Denver based sculptors. Sunday's kickoff features storygteller Susan Kaplan, who will weave the stories of each artist around their sculptures. The event begins at 6 p.m. in Vail's Ford Park, between the picnic pavilion artd the school house. Vail Daily/MBlintla Ivuse Kathryn Wheeler of Eagle-Vail create's a wood cutting relief of a mourltaln scene Tuesday at Ellefson Park in West Vail. Wheeler uses a wt3odbuming technique for the detafis. Ellefson Park _ r' . ~ J ~ f^ ~' ~ - i _ ~=~T ~ ; ~. ~. Memorializing ~, ~.: ~~~~~ -~ ;ommunity leaders ~:~~ ~ ; and achievements ~~~ ~~ ~ ~ _ f '',c.-.,q, ~' ` "~F'` i ~T ; ~:r ~'• r D ~ _ ,.~~,~..,,j ~' ~ , '~ Y ~ _ _. ~ ~ ~` - .. ~ {~~ At West Vail's Ellefson Park, AIPP commisioned Katherine Wheeler to create a tribute to Lyndon Ellefson, founder of the United , States Mountain Running Team. _ _ ` ,._ . ~~ a Arrtist in Residence Program Artist in Residence Program AIPP aims to make the visit to ford Park a richer one. A residency program offers an artist the ~' opportunity to live, work, and draw inspiration from a new environment for a limited amount of time. Currently in Ford Park, you can listen to music, watch dance, visit the Alpine gardens, shop for gifts, play ball, picnic, explore the nature center, and view the annual summer sculpture exhi- bition. With an artist in residence there will be an added opportunity to stop in see the creative process underway, ask questions, and find out more about artistic techniques and mediums. Providing opportunities i for locals and visitors The future Artists' Studio for Vail's Artist in Residence Program. Donovan Park _,rr Art can be fun! Whimsical play pieces, created by Elaine Calzolari, enhance Donovan Park's playground. ~' -_ ~!' _ -, 1 ~~ , y ~~ " i ~ r' . _ ~. ~-- _-- .- f ~ .i~,a ~~ -F--' ~~ ~- - ,y s _ ~ ti ~~~ ~.r ~, ~~ /~ ~ l ~~ ~, i~ ~_~` •, y, ~ .w- / THURSDAY ~"' AUGUST 21, 2003 '`-'' Vowre XXIII, NUWER 53 - Luis Herrera validaily,eom ~ ~ Edwards Elementary . syrrall: aswaroom@vaildally.eom Thurderstarma (970) 949-0555 NIQn in 70a; lows In SOa Bringing Communities Together Sea weather, PAGEB40 Vai ' ' ' 1 co 1~ a ton com~n u p ^ A current councilman and a retired businessman and art collector are seeking at least two more candidates to join them on apro-business political platform for the November Vail Town Council election. PAGE A3 PAVILION PREVIEW ~ ~I, _ f _ -_,~ -. ~~ __ ~~ . _ - ~_ ~` Vail town offlclals, Vail Resorts representatives, architects, and Interior designers tour the Donovan Park Pavilion Wednesday in Vall. "The search for the right college belongs to the student not the parents " A&E ............................... A&E CALENDAR ............... .......B3 .......~ Fabulous music faire , . Butch Mazzuca CLASSIFlEDS ................... .....B13 COMICS ......................... .....839 PAGEAI3 COMMENTARY ................. .....A13 ~ Vall s fifth music faire COMMUNITY .................... .......AS COMMUNITY CALENDAR... .....A11 ~ offers a wide variety of ~- ~ I ® ~ `~ ` CROSSWORD ................. DEAR ABBY .....839 839 ~~ styles and performers. ~'"~ Ir all of your real esfa need .................... HOROSCOPE .................. ... . ......839 I _ =' ...... MOVIES . . . .82 ,. . i . s.f~ , ~ \ ~1~1 \ 1 Ll ~l ~ l -_'L '` ~ ! i . ........... . h>TION .. ............. .. .. . .. ......A19 , ii ,. ; ~ ~~4 „9 ~~t PLANET WEIRD .............. ........BB A39 I ^ ~` - - -~ : - .L \ L~.~i` SCOREBOARD ................ T ...... A34 , ,,: ~ ) }' ~"`~ ~~ <: ,rrP?z`L (~~~~~~I~~I L~ ° S ........ .... .. SPOR T ... 38 x PAGE 81 ~;.`.. ~ .. . . _ - h~ L L-~1~;TL ~ INGS ..,.. N _.. LfS . _. ....6 . ... , . -. T~-. Ass 2 Stxeet • Vail, Colorado • g~o.476.ig8~ _ _ , , . ~ . ~ Page A2 -Thursday August 21 2003 ___ _ _-_ - __--_ THE ; ~ ; VAII DAILY 970.949.0555/vaildaily.tiom new gat, West Vail's Donovan Park Pavilion opens for special events Sept. 2 By Matt Zalaznlck D,tar SrnrF w'RirER Photographs of national park buildings were the inspiration for the Donovan Park Pavilion, the West Vail special events facility that is already booked for all but three Saturdays next summer. The pavilion. the fiat public building [o opc;n in Vail since the library began lending books in 1982, will be dedicated to lona- time resident and ~ former Vail Mayor John Donovan on Aug. 30. The land, which also includes the busy new park alongside the South Frontage Road, was initially dedi- cated to Donovan 23 years ago. "1'm just thrilled. It came out even tx:nzr than we thoueht:' said Donovan's wife, Vail Tuwn Councilwoman Diana Donovan. during a sneak-pork tour of the pavilion Wednzsday while work- znput the finishing touches on the mountain-lodge-style building. Adaptable 1'hc p:n'ilion. which has a fah kitchen and state-uf-the an audio- visual equipment, is designed to be adaptable. Donovan said. "It can be whatever you want:' she said. "A lecture hall, wed- dings, company gathcrinGs, a memorial service:' The 5,025-square-foot pavil- ion. owned by the town, cost 52.8 million to build. It will be open year-round and can accommodate nearly 500 people indoors with space on the creek-side patio for another I !0 people. The pavilion is designed for all types of events, including conventions and wed- dings, said C.aurie Asmussen, one of the owners of Donovan Pavilion Management, Inc., the REGION Pavilion for a pioneer By Matt Zalaznlck D LILY Sea Pi' WRITER John Donovan, who first arrived in Vail in 1962, was a member of the Vail Town Council from 1966 until 1980. Hz was a ski instructor and one of the first members of Vail Mountain's nail crew, when the slopes will still groomed by side- stepping the steeper runs with skis. R'idt a friend, he opened one of the first busi- nesses on Bridge Street, a deli. In 1966, he opined Donovan's Copper Bar, which was a Vail Village landmark for 16 years. Vendetta's bar and restau- rant is now on the spot where the Copper Bar stood. Donovan now owns Vail Honeywagon, a waste- hauling company. He started the town's clean-up day and was a staunch advocate of both open-space preservation and Van's free bus system. In 1980, the Town Council purchased 51 acres of land in West Vail for 513.9 million and named it John F Donovan P:trk. The park consists of three "benches" that ascend from the Suudt Frontage Road to the outskirts of Vail Mountain. The 12- acrc lower bench is the site of the park and pavil- ion while the 39acrc upper bench. alxnc Muuerhom Circle. ~~ ill remain open spare. The rown h;is yat to determine beau to use [hz 2.3-acre miclJlr henrh will he used. firm hired by the town to manage and book the facility. "W'hat the Town Council com- municated to us was, 'We want a community gathering place,"' Asmussen said. "This is a new gathering placz in Vail. It's for weddings, family reunions, corpo- rate parties - it's a beautifitl, open mountain-lodge-type Feeling. "It gives the town a IarRer place to gather she ,aid. Dixounted rates are available to Vail and Eagle County residents who want to reserve the pavilion, Asmussen said. The pavilion will open for events on Sept. 2. Bookings boom Asmussen's partner, Cindy Clement, said there has been strong interest in thz park - despite no local advertising and very little advertising nationally. There has been intense regional, national and even international interest, and the pavilion is already reserved For almost every Saturday next summer, she said. "It's amarirtg the amount of bookings we have, and the inter- est:' Clement said. The town plans to hold the November elections, which will include either four of five open seats on the Vail Town Council, in the pavilion. The town also plans to hold its annual meeting there. "1 think it tamed out fabulous:' said Vail Town Councilman Rud Slifer. who, along with Donovan and Councilmen Dick Cleveland and Chuck Ogilby. served on the committee that oversaw design of the pavilion. "1 think i[ will get used a lot:' Acting Vail Tuwn Manager Pam Brundmeyer acknowledged the pavilion has been a "contro- versial and contentious" issue for the town doting the past few yeah. But the final product, Btandmeyer said, should quell some of the opposition. "We're incredibly proud of the entire facility:' Bmndmeyer said. Park already popular While the pavilion has yet to open, the surrounding park is already a busy recreation spot. Diana Donovan said she's pleased with the popularity of the sur- rounding park. "I came down with my grand- ii - What the Town Council communicated to us WaS. `We want a community gathering place.' This is a new gathering place in Vail" Laurie Asmussen DONOVAN PAVILION MANAGEMENT, INC. DONOVAN PARK & PAVILION DEDICATION CEREMONY 10 a.m., Aug. 30 Donavan Park, South Frontage Road, West Vail. Park and pavilion will be dedicated to former Vail mayor and longtime resident John Donovan For more informadon on booking the pavilion, cal! 477-3699 or a-mail pavlliorrCvailgov.com. children wtd it was so crowded we went to Ford Purk;' Donovan s;rid. "That's a real measure of success:' Slifer said the park has been a big hit with Vail locals. "This is a big neighborhood: a lot of people live here and they're mostly full-time resi- dents" Slifer said. "You sec kids in the playground, you sec. a lot of basketbalh Frisbee, dogs, soccer - there's a lot going on:' Mart Znla/rick can be reached ur 949-05.55, en. G06, ar via a-mail ar mala;,nick@raildailv.cnm. Special to the Daily For 16 years John Donovan, a former Vall mayor, owned one of Vall's legendary drinking establishments, Donovan's Copper Bar on Bridge Street. Donovan Park _~ .~ Artist, Kate Petley, conceived of stylized Aspen leaves to enhance the pavilion's windows and patio. .. • `~~, ~ "k . "r-~, ~~ ;~_ ~f b f?r' ~'~ ~ a ~~+ ~ .,~; -~ ~-- "~ `~ ~~~ T ;,.•,,. , ~~ 1 ~ Whimsy and. I~is~t~~ ~ ~ -- '!~' %I' ~"r, ~~i ,i ~ 'rte r ~. P' '_]d~r 5 ~' ` ~~ ~ ~ ~~- ~r~i ~ "Z ~,~ 4 • r~, ~~~' ~1~~• y ~"- ~ ~ ~ _ _ ~~ i "~' ~ ~ :l~~~r Pirate Ship Park, one of Vail's first children's playgrounds, gets a face lift. Updating our play features keeps our children safe while encouraging their imaginations to set sail. ~\', Artist, Ty Gillespie, - ' ~; joins the design team, ,..3~ ~ ~~ ' creating a new ship ~ ~ ~ ; ° ~ ~ ~ ~ for Priate Ship Park. .~_ ~ .Y ~~ , r= ., ~. ~ ~:_ ~~ ~: Pedestrian Bridge Art portraying the VaillifesTyle Artist: Lisa Feedon Elevation A -From the Internalionaf Bridge Elevation B -From upstream Scale: }14"= 1' Scale: !/4"= 1 Eievation C -From die south end of the bridge 5°'''t' I' ' ~- Meadow Drive Site of the "Gateway Project" i ----- _- ~. ~- -; ~:~.- -~ ~ e ~' ~ ~ O ~ ~°' '~ .~e~ v~~ AIPP is searching for a welcoming gateway for Meadow Drive. Streetscape Improvement Plan ~~~, AIPP has been working with artists to add artistic ,~ elements along East & West Meadow Drive. - _ ~, :. -- __ _ _ _ _ • -- t •~~ _ T _ r _ ~ y'-,' S ~ ~~'`. ~ ~. L~ ~ Streetscape AIPP has commissioned artist, Carolyn Braaksma, to work as part of the design team which includes landscape architects and planners to enhance the design of Vail. I __ _L. ~ ~I_ ; J _„fiy_ _ Adding artistic elements _ `_ 'J ~ Y to compliment - ~y - ~ __~ "'T~? d a`" the Alpine environment. _ - -~.. ___ i _~ -' x - -~ - ~ = ~- - s ~~~ ~ -~~_ j. ~ a ~ ~;--~--~--~- ~- ~ _.__1 ~~ ~ ~ ~~; _ - ~ _ t Y -- _ __ ~- J _' ~ ~LT 3~ X33 -~ ~ ..~; ; :~~ E ~ ~ - ~.~.! ~~ Reinforcin & 3. ~~~ ' k ~~~' J expanding our town's ~~ '~ commitment to ~, ~~~, ~ ~ ,°~ ' ~ ~ ~! improving the aesthetic character `'' ~ of it's public places Manhole Covers The manhole covers have been a great success. Not only do they promote Vail but also generate income for AIPP. We are now looking to expand on the success of the manholes and offer other Vail merchandise for safe. Shown on this page are examples of manhole cover jewelry designed by local artist Jim Cotter. HOLE IA 1 1 Farmer's Market - - ~ . ~.. ' «„ D _ 1 2~~~ ~ ~ _ x _ _ _ P ~ a I pQ . ~. 1 r' ~ ~ ~~~ `, _ i.~ A ', ai ~ 1 ~~ i Y{ r _ MANHOLE COVERS ,~~T -_ ' ~k~ ~: i . f s _~ . / k ~ / f,_ .ti- .. E;~ j J }~_ !~; ' Artist, Joan Norris, poses with a painting she made of the Farmer's Market. Local artists demonstrated their craft at the Farmers Market while AIPP board members sold manhole covers. Joan Norris and Julie Spinato both volunteered to paint landscape scenes at the AIPP booth and Anne Loper displayed her hand made pottery. AIPP's new brochure, a walking tour of Vail's public art collection, was also distributed at the booth. llr ins. i ~ ii ^ Religion, es ^ Business, Bto SATURDAY, JANUARY 24, 2004 • Weather, esz __ _ - ----- - -- TERTAINMENT ; ~ Wealth of art in the neighborhood Town of Vail employees display art at Vail Library ~~; By Andrew Harley U>u v S r+rr W e n eu It reach like a dating scrvicds list of possible matchn. A firefighter, a heavy machine oprra- utr. public works departnrnnt workers, a code enfi>rccmrm ol'ticrr and the list goes on of lotvn o(Vail cntploycrs with cxerp- llnnal artltille talrlllti. I'hc lint-ever low•n ul Vail employer an exhibition is cunrntly in progress - end- ing Sanu'day. Jan. 31, in the Vail Library Cunununity Room. the show (rooms 15 :mists, with works ranging Inns watercul- on, acrylics and photography to ceramics. headwork. x•ulpmn :md a'ondrtn'ing. "I think Suz:mnc• Silvcnhont Ithc lua'n ul Vail's conununily infunuation ofhcrrl said something interesting :dire reading the Jcscriptions of :dl of Ihr artists and bring so intprcssrd by the work of all the ur+n cntployecs: 'It must he that rroativit}. that runuihutes u, Ihr town of Vail being such a wunderlill place In work: ° said Lcslir Pickling, wI in public place cuordi- nabtr (or the ntw'n nl Vail. Pickling organized the exhibit. which was inspired hp a simihtr production she aUeuded in Chapel Hilh N.C'. And. what beg;m as n nation has turned iNU quite a successful rcaliry through the rxcito- stem and cdrnb o(a I:u'gr Imaxxn of Irtcal working artists. "I'm eery impressed +eith boa' rnduuiastir the m+sn employees were about wkin~~ p:u,.:md with the amount of duatght they pm info what was hung:' said Pickling. "'there was su much enthusiasm this year that if we see Ihr same rmhusi;tsm nest year. +vr might have w jury the show.'. With the varied captivating works in this exhibit, Itad ajury txen nttessar}'the tlceisions would have been very touch. r\nxmg the next inuncdiatr auractiurn i. public works dcpartntrnt employee Kick Gregory's lamp made from wash ruu - Gmgory is a trained :utist. C'rxlr culimcc- ntent ot7ircr Halr}• Rollins tun old window limntcs to Irtme her paintings. I~inmtre dcparuncnt employee Gina Rentz shnwras- rs her 10 yrus of jewelry craftsmanship. Jim Spell, lire and rntergcncy srn•ires captain, cereals his philosophical draw- ings. "Ontology of the Universe parts I and II: ~ )conifer ftutlcr. also x mentbrr of the linanrc dep:utntrnt. shares xnnc tig- urr smdirs. A shmvcase toward the back ul the room eunutins Jancil '1'urnhull's "Polk Rox:' an imrieately paiutcd, e}•lindrical, wooden anuainer. '1'hr c;uc also displays Dean Wulv's ceramic work. "r\nastasi Put:' Uou:dd Gallegus's word casings "Pr:mcisc:uf' and "Saint .Inseph" ._ and Todd Opprnhcintrr's studies of trout -- in the form of w¢utdcaraings. "fhe final three items in the euc htlun,; w the Nrrvrrt tinnily. Jim Nerves. +ehn has u•nrkrd for Ihr ta+vn since 1986, shares Iwo wandrn pints __. a magic wand and a miniature pool cue. .lim\ 13-year-old son. Clint Ilen'rn, uanr.I}~cd to lit many lovely huu of blue intrt a c enunic howl. Other notable ~,u;itits inchule bm )river a ~~ Cheryl Robcns, town administrator Dalc Nmpr and l'racy Gordon. Susie Allen, town of Vail Politic Sgt. t,Lvk Allen's wife, added some of the must captivating pieces. "fhe human suh- jrcts of Susie Allen's four pieces end up bring a family of sorts, with a man at work, a woman applying makeup, a little girl enjoying a bite Io r:u in the grass and a vibrant pointing nl a young boy titled "Steven " "I'hc library lighting doesn't do every- onr's work justice. II da• cunvcmion crn- ter ever errs built. it +eill hr nice at have Ihr c.xhihit there:' said Firklinc. I'hr anise lunuxn :uul the concept of the shna• are solid. and Ihr only m:Ijnr c•onytlaint is that the yualily ul Ihr an is Iuo grrU fur Ihr tonne. So, this vear\ show is well nn its way to brine, the fo,t nt man.'. - :Indn~u llurlrr run h<' rt'rtr /avl r u f 47111 9~f 9-2i S i, .'.1 t. /i ill, r~r ur ~Juu~h'rin railJrrilc.rant. TODAY Vince Herman of Lekover Salmon plays far apres at Lion's Den in Lirntshea I at 3:30 p.m. PR~'~ TODAY Little Hercules throws the funk down at Half Moon Saloon in West trail at 10 p. m. It's Fight Night at Vail's 8150 at 10 p.m. Weigh- in begins at 8 p m. Dennis Vernon plays at Main _ , Street Grill in Edwards at 10 p.nt. Snr•ci.il Itl Ilu~ D,111Y/'t rsliC r,+Ia~ng The Town of Vail employee art exhibition offers a wile variety of mediums and styles. SUNDAY Lewis Black offers scathinp, social crommrnLuy with plenty of laughter nn the stage at the Uilar Center in Beaver Creek at 7:30 o.m. Special to the Dally/Leslie Fckling Susie Allen's "Avon Calling" serves as a good example of the exhlbk's mesmerizing qualkles. ra~~$io~ e ~ ~15t1C .111 O~~nl~y ~ ~~ O~~ _~1c~ C '- ,~~!~ ~~ :~~ ~ ~~ r Trash Cans for pedal Events Community Involvement C~9~0 '~'~a~ Hss9~ ~fl~~ ~~tt~~ C~~~ .,~ , r + .F NCH t~t9~ESS e ~ ~~a end, Bey z used ~o!~, J'~BOOKS get 3'~ one FREE! - ~ tiC.~)'i (:c,t;'~ [!oak wiih lowest price will be bee. William S Silvers, M.D., P.C wtvw.AlteryyASthmaColorado. yourmd.com Consults: Colorado Mountain Medical-Vail Appointments: ~ -800-543-4629 Next Appointment Dates: April 13 & May 4, 2003 ALL HOid OFFICE FURidITURE 2®% off (offer they April 15th) }jsm~r~ A 845-7[5509 ~ Eogle-Vo'i'I~~ p/!us/lness Center ~62W~ Townhomes & Condominiums The Locals Choice 25 Meter Swimming ~'~'~'1., Pool (year round) ~ •t~-~ ~IW111s~ ~SJ~ ~ ~~~ ®fl7177~~~yy~~~~ ~JL®Qs°~ bg ~~ C®ESYa~B~ $® E'~YYfl~YIlT ~$ ®~ CBl$S The remaining lice of recommended bud- get cuG will be reviewed by the Vail Town Council during its regular evening session on Tuesday, April I at 7 p.m. in the. Vail 'fawn Council Chambers, 75 S. Frontage Road. The Town Council will hear public com- ment on a list of 5476,000 in potential operating cuts recommended by Town R7snagcr Dob Mclatuin. His recommendations follow SL2 mi[- lian in budget cuts already under way at McLaurin's direction, including 10.5 ful6 time positions over the nett too }'ears. The remaining require approval by dtc Town Council because of their impact on the delivery of town services or public pol- icy. Here's arc the proposed cuts: • Elimination of the golf course bus route during the summer of 2003 and again in 2004 - a savings of S 18.000 a year. Robert &{el>wq-Q3oss 1tl's Art in Public Places (AIPP) coor- dinator, Leslie Pickling, sits in her back oFt<cc a[ the town's public works building 30 hours a week, pulling together and executing ideas that might complement the world-class resott commu- nity's alpine ambience. Thry are projects that,just as in many communities, incorpo- rate art into the public land- scape. And like many commu- nities, they are projects that are being threatened by budget cuts due to hard economic times. Shaky finances make for unpopular decisions when i[ comes to municipal budgets. So the arts may be taking a hitTuesda}•. April 1, when outgoing Town Manager Bob McLaurin recommends the town council cut back on AIPP's coordinator position. "The AIPP position is proposed to go to half timz with no benefits -from 30 to 30 hoots aweek -and that ewuld save us about $12,000 to SIS,000," says ivtcLaurin. '`Bu[ the AIPP board indicated that would kill the program." By cutting Fickling§ hours back, McLaurin says the ad hoc board is concerned there would be less time to implement pro- jects that could be Funded by money coming from sources other than town coffers. Outgoing AIPP board chairwoman Kathy Langenwaltcr says she and other board mem- bers would prefer to slice that money direct- ly from AD'P's budget rather than scaling back Fickling's hours. "An in Public Places can be so many things;' Langenwal[er says. "k can be a large project or a small project.. Working on small projects has been our focus. and having a coordinator at 3U hours a week helps facili- tate those projecs:' Sets Attic P,~cr; 24 FP,OAt PAGE 6 So by keeping FicUing u[ 30 hours and cutting back the budge!. Langenwaltcr says AIPP would have the ability to seek outside funding for projects. "Cutting Leslie to 20 hours a week would create a problem:' Laagemalter says. For the past several vroars Pickling has been coordinating public an projects for the Town of Vail, first as a consultant and later a town employee. Her cffons have facilitated projects ranging from wildlife murals in the Vail Village Parking Structure to a summer sculpture exhibition in Furd Park. Current projects include a carved wooden tribute to ulna runner Lyndon Ellefson at West Veil's Ellefson Part; pavilion and the Donovan Park fence and play area. Public reaction to past and current projects appears to be positive. "Lot's of people call to say how much they like what we're doing;' Pickling says. Even the once controversial sculpted trib- ute to Vail founder Pete Seibett at Seibert Circle has become an accepted fixture in the village landscape. Tht: organic. functional ring of large sculpted stones at the top of Bridge Street was commissioned by tilt: town from interna- tionally acclaimed st:ulptor Jesus Morales. The tu't:vork was so abstract that Seibert him- selfwas obit bothered by the work. However, Pickling says it's good to see Veil's guests interacting with the stones -people resting or children pia}~ng oa dte pieces -and that FRGIvI PAGE 4 ~YJ~D~]E'~' FROM PACE 4 hudvet isn't exnerted to vmw more oenernuc anwimr. anon a cPP.,,c hoc ~~.. U..n 6n..: n. cr..., ,,,t. •.:.. tie,.,,..,:.,,, „ r:..-.r Srr: Conant t;:ctt 24 speaks to the project's success. People in communities:vhcre public art is paid for by public funds traditionally ques- tion the wisdom of such programs. In a reson community such a, Vail, Pickling and the AIPP board's Langcnwalter agree That wisdom in this case should err on the side of public an. ' "1 drink that in Vail we aced to have a competitive edge, ;tad I think that an is one thing that brings people to the community and brings people back to the community," Langcnwalter says. echoing Fickline's phi- losophy. So on April I, when T\9cLaurin recmn- mends to the council that Fickling's hours be scaled back, citing along-term savings for the town's budget, he would also consider sta»ding behind the AIPP board's proposal to keep her hours intact and cut from the program's budget, but only if the board can show that it can f ind alternative funding for fuhire programs. He says he also believes the council would consider such an alterna- tive. "I think it's :vor0i discussing;' McLaurin says. "lf they (AIPP) can bring in outside funds, that could work." ' Langemvalter and Pickling say outside funding such as foundation grants can be obtained by the board for future projects, leaving public funds within the tom budget. The problem, according to Langentvalter. is that cutting Fickling's hours would diminish the lime required to research and obtain that funding. ^ FROM PAGF. Et • Elimination of rite in-. town shuttle from April 21 to Junc 2 in 2003 and again in 2004, a savinas of $ 11.000 ;t year. • A $10.000 reduction of the Christmas light budget in ZU04. • Elimination of Funding to the Vail Chamber and'. Business Association in', 2004, down from $225.000 in 2003. • Elimination ofa contri- bution to the Vail Local Marketing District from the 2004 general fund, down from $150,000 in 2003. • Elimination of funding to the Vail Valley Chamber and Tourism Bureau for valley-wide chamber oper- ations in 2004, down from $25,000 in 2003. ^ Far morn it jorniarion on the .4pri! 1 Tmrn Council meeting, go lu IGe rutvns H'eb site ar tvu•%vailgor.com or call the Totrn of Pail Community hjormaliun Office at (970) 4?9-11 /3. -!'ail Tmi! staff report Dan DaviSlThe Vail Trail A dash of artistic flavor does much for a public space, but funding for finery -like this decorative fence at Donovan Park -may be in danger. ~~~~ A>~ ~>~a~>~tt®>i~ (s~~n>~~ 2®0~) Blue Bird of Paradise Michael Anderson 1990 Painted steel Children's Fountain Dennis Smith 1986 History of the Gore Valley Children of the Gore Valley 1985 Ceramic file Exuberance Dan Dailey 1993 Glass Block The Need to Know Hollis Williford 1984 Bronze Clip Man Don Wilson 1991 Neon Kaikoo III Betty Gold 1990 Donation by David and Micki Chatkin Painted Steel The Lift Susan Grant Raymond 1985 Bronze Rocky Mountain Majesty Stephen LeBlanc Bronze 1990 Is Anyone Listening Donald Mitchell 1992 Painted steel Terre Haute Bryan Hunt 1993 Donated by Chuck Rosenquist and Family Bronze Passerby Travel 1995 Randy Milhoan Oil West end of Lionshead Vail Village Bus stop base of parking structure Parking Structure steps Behind Library Bronze East entry to Lionshead Parking Structure Near Library Lionshead Lionshead, sundial plaza Front of Lionshead Parking Structure Mayors Park Lionshead Parking structure 10~' Mountain Division Memorial 1998 Slifer Plaza Scott Stearman Victor Issa Donated by Dured E. Townsend Memorial Fund Bronze Granite Amphitheater 1998 Seibert Circle Jesus Bautista Moroles Granite Spirit of the Skier Michael Meszaros 1998 Gold Peak ffa'om Sisger Resork Mt. Buller Australia. Bronze Check Point Charlie Margarette Johannes 1998 Vail Village, Checkpoint Charlie Acrylic on wood Fishing Pole and tin can for Vail 1982 Vail Library Claes Oldenburg Donated by Chuck Rosenquist Mixed media Ptarmigans Robert Tulley 2000 Ford Park playground Granite Along the Colorado Natalie de Stephano Acrylic 2001 Village Parking structure Westward Ho 2002 Donovan Park Playground Elaine Calzolari steel Deer Migration Fence Barbara Baer Printed canvas 2003 Dowd Junction (temporary) Mom and kid Elaine Calzolari 2003 Donovan Park Playground Steel Aspen Leaves 2003 Donovan Park Pavilion Kate Petley Etched glass and stamped concrete Newspaper boxes Transformers ~) -t. ORDINANCE 8 SERIES 2004 AN ORDINANCE AnAENDING TITLE 6, CHAPTER 3, "GENERAL OFFENSES," OF THE AAtJIVICIPAL CODE OF THE TOWN OF VAIL; PROVIDING FOR THE ADDITION OF "ARTICLE I. VIOLATION OF RESTRAINING ORDER"; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, it is the desire of the Town Council of the Town of Vail ("the Town") to amend the Town's Police Regulations to provide for the crime of violation of restraining order; 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 adoption of this ordinance. IVOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Sect6ou~ 'B. Title 6, Chapter 3, of the Municipal Code of the Town of Vail is hereby amended by the addition of the following Article I, to read as follows: ARTICLE I. VIOLATION OF RESTRAIIVIIVG ORDER SECTION: 6-31-1: Definitions 6-31-2: Violation Of Restraining Order 6-31-1: DEFINITIONS: For the purposes of this Article, the following terms shall be defined as follows: PROTECTED PERSON: The person or persons identified in the Restraining Order as the person or persons for whose benefit the restraining order was issued. RESTRAINED PERSON: The person identified in the Restraining Order 'as the person prohibited from doing the specified act or acts. RESTRAINING ORDER: Any order which prohibits the Restrained Person from contacting, harassing, injuring, intimidating, molesting, threatening or touching any person, or from entering or remaining on premises or from coming within a specified distance of a Protected Person or premises which is issued by a court of this state or the municipal court, and which is issued pursuant to C.R.S., Sections 14-4-101 to 14-4-105 Ordinance 8, Series of 2004 l~ C.R.S., .Section 14-10-107 C.R.S., Section 14-10-108, C.R.S., Section 18-1-1001, Section 19-3-316, C.R.S., Section 19-4-111, C.R.S. or Rule 365 of the Colorado Rules of County Court Civil Procedure, grid orders issued as part of the .proceedings concerning criminal municipal ordinance violation or any other order of a court which prohibits. a person from contacting, harassing, injuring, intimidating, molesting, threatening or touching any person or from entering or remaining on premises or from coming within a specified distance of a Protected Person or premises. SUBSEQUENT ORDER: An order which amends, modifies, supplements or supersedes a Restraining Order. 6-31-2: VIOLATION OF RESTRAINNG ORDER: A. A person commits the crime of violation of a Restraining Order if such. person commits an act which is prohibited by any court pursuant to a valid order issued pursuant to Sections 14-4-101 to 14-4-104, C.R.S., Section 18-1-1001, Rule 365 of the Colorado Rules of County Court Civil Procedure or an order issued by any district court, as provided for in Section 14-10-108, C.R.S. which restrains and enjoins any person from threatening, beating, striking orassaulting any other person or requires a person to leave certain premises and refrain from entering or remaining on such premises, or a municipal ordinance which provides for an order to issue which restrains any person from threatening, molesting or injuring any person or entering or remaining on the premises, or any protective order issued pursuant to Title 19, C.R.S., or if such person fails to perform any act mandated by any such order, after such person has been personally served with any such order or otherwise has .acquired from the court actual knowledge of the contents of any such order. B. A peace officer shall arrest; or, if an arrest would be impractical under the circumstances, seek a warrant for the arrest of, a Restrained Person when the peace officer has information amounting to probable cause that: 1. The Restrained Person has violated or attempted to violate any provision of a Restraining Order; and 2. The Restrained Person has been properly served with a copy of the Restraining Order or the Restrained Person had received actual notice of the existence and substance of such order. Ordinance 8, Series of 2004 2 1 C. Any violation of this section shall be deemed a violation of this code, punishable by a fine or imprisonment or both- in accordance with the general penalty provisions of this code. Any sentence imposed for violation of this section shall run consecutively and not concurrently with any sentence imposed for any crime which gave rise to the issuing of the Restraining Order. D. iVothing in this section shall be construed to alter or diminish the inherent authority of the Court to enforce its orders through civil or criminal contempt proceedings. E. Rlo person charged with violation of a Restraining Order pursuant to this section shall be permitted, in the criminal action resulting from such charge, to collaterally attack the validity of the order which such person is accused of violating. F. A peace officer arresting a person for violating a Restraining Order or otherwise enforcing a Restraining Order shall not he held criminally or civilly liable for such arrest or enforcement unless the peace officer acts in bad faith and with malice or does not act in compliance with rules adopted by the Colorado Supreme Court. Sectioo~ a. 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. Sectioe~ 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. Ordinance 8, Series of 2004 3 The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. SectBon 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 16th day of March, 2004 and a public hearing for second reading of this Ordinance set for the 6th day of April, 2004, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Rodney E. Slifer, Mayor- Attest: Lorelei Donaldson, Town Clerk Ordinance 8, Series of 2004 4 ORDINANCE 9 SERIES 2004 AN ORDINANCE AMENDING TITLE 6, CIiAPTER 3, ARTICLE A, OF THE MUNICIPAL CODE OF THE TOWN OF VAIL; PR®VIDING FOR CERTABN AMENDMENTS TO THE TOWN OF VAIL POLICE REGULATIONS RELATING TO OFFENSES 13V OR AGAINST PUBLIC OFFICERS AND GOVERNMENT; AND SETTING FORThI DETAILS IN REGARD THERETO. WHEREAS, it is the desire of the Town Council of the Town of Vail ("the Town") to amend the Town's Police Regulations to provide for the crime of violation of bail bond conditions; 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 adoption of this ordinance. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 9. Title 6, Chapter 3, Article A of the Municipal Code of the Town of Vail is hereby amended by the addition of the following Section, 6-3A-10, to read as follows: 6-3A-10: VIOLATION OF BAIL BOND CONDITIONS: A. It shall be unlawful for any person released on bail bond of whatever kind to knowingly fail to appear for trial or other proceedings in the case in which the bond was filed or to knowingly violate any condition of the bail bond. B. Penalty. Any violation of this section shall be : deemed a violation of this code, punishable by a fine or imprisonment or both in accordance with the general penalty provisions of this code. 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 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 9, Series of 2004 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 16th day of March, 2004 and a public hearing for second reading of this Ordinance set for the 6'h day of April, 2004, in the Council Chambers of the-Vail 6Ulunicipal Building, Vail, Colorado. Rodney E. Slifer, Mayor Attest: Lorelei Donaldson, Town Clerk Ordinance 9, Series of 2004 oRDINANCE No. ~ SERIES. 2004 AN ORDINANCE AMENDING TITLE SIX OF THE VAIL TOWN CODE; EXEMPTING AREAS OF STEPHENS PARK FROM TOWN OF VAIL REQUIREMENTS REGARDING PET ANIMAL OWNERS' IMMEDIATE AND PHYSICAL CONTROL OF DOGS; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail, in the County of Eagle and State of Colorado (the "Town"), is a home rule municipal corporation duly organized and existing under laws of the State of Colorado and the Town Charter (the "Charter"); and WHEREAS, the members of the Town Council of the Town (the "Council") have been duly elected and qualified; and WHEREAS, Stephens Park is located within the Town and, when visiting the park, Pet Animal Owners are currently subject to the requirements as set forth in Section 6-4-6 of the Vail Town Code regarding the Immediate and Physical control of dogs; and WHEREAS, it is the Council's desire to exempt certain areas of Stephens Park from Town requirements regarding Immediate and Physical control of dogs. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 9. The purpose of this Ordinance is to exempt certain areas of Stephens Park from current Town of Vail Town Code requirements that Pet Animal Owners' exercise either Immediate or Physical control of dogs at all times. Section 2. Section 6-4-6 of the Vail Town Code is hereby amended to read as follows: (additions are shown in bold and underline) 6-4-6: FAILURE TO CONTROL ANIMAL: It shall be unlawful and considered a failure to control an animal when: A. Any dog is off the premises of the owner without the presence of a responsible person having physical control of the dog on any bike path or public park located within the Town or on any area located within the Town and described in Exhibit A attached to Ordinance 5 Series of 1995, made a part of this Section by reference, and which can be found on file in the office of the Town Clerk. B. 1. Any dog is off the premises of the owner in all areas of the Town, other than as specified in subsection A above, without the presence of a person having immediate control of the dog, and Ordinance 4, Series of 2004 ~, 2. It is an affirmative defense to a violation under this subsection that the responsible person accompanying and having immediate control of the dog was actively engaged in training of the dog which caused the distance between the responsible person and the dog to be greater than ten feet (10'). C. Any dog is on or within one hundred feet (100') of any athletic field or golf course within the Town while any athletic event or activity is in progress, except that a dog may be within one hundred feet (100') of an athletic field or golf course while any athletic event or activity is in progress if the dog is on a public road or right of way. D. Any animal is allowed to becorrie a danger to any person or property. E. Any animal trespasses on, or is tethered upon, any public property where expressly prohibited or private property without the permission of a person owning, leasing, or otherwise controlling the property in question. F. Any dog reaches past the perimeter of the owner's premises with its teeth or claws. G. Any animal is allowed to excrete body waste upon public or private property when the animal owner or other responsible person does not remove the waste in a timely manner. H. Any female dog or cat is not confined during estrus in a house, building, or secure enclosure constructed so that the female dog or cat cannot escape, and no male dog or cat may gain access to the enclosed animal. A dog is not under physical control while in the yard of any multiple occupancy building occupied by other persons; or in the common areas of apartments, or condominium developments. J. Any animal is not under physical control in areas posted as requiring any animal to be on a leash/tether by any agency of the Federal government, the State, or the Town. K. Any animal is kept or left in circumstances which constitute neglect, mistreatment, or abandonment, if the keeping or leaving is due to criminal negligence on the part of the animal owner. L. Protective custody of any animal is reasonably necessary. M. Exception: Notwithstanding the provisions set forth in Sections 6-4-6(A) and (B) above, any dog in Bighorn Park and/or Stephens Park, except for those considered as Vicious, Dangerous or Potentially Dangerous, need not be under either Physical Control or Immediate Control of the Pet Animal Owner if said dog is occupying any area described in Exhibit A attached to Ordinance 1, Series 2003 or Exhibit A attached to Ordinance 4. Series of 2004, made a part of this Section by reference, and which can be found on file in the office of the Town Clerk. Nothing in the Section shall exempt a pet animal owner from the provisions of.Sections 6-4-6(C)-(L) of this Title or from exercising Control over his or her dog, as defined in this Chapter 4, at all times. Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not 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, Ordinance 4, Series of 2004 2 Y section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The Town Council hereby finds, determines, and declares that this ordinance is necessary and proper for the health, safety, and welfare of the Town of Vail and the inhabitants thereof. Section 5. The amendment of any provision of the 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 amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously amended or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions, and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution, or ordinance, or part thereof, theretofore repealed. Section ~. This ordinance, as adopted by the Town Council, shall be numbered and recorded by the Town Clerk in the official records of the Town. The adoption and publication shall be authenticated by the signatures of the Mayor, or Mayor Pro Tem, and Town Clerk, and by the certificate of publication. Section 8. This ordinance shall be in full force and effect five days after publication following final passage. INTRODUCED, READ, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 2nd day of March, 2004 and a public hearing shall be held on this Ordinance on the 16th day of March, 2004, at 6:00 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Rodney E. Slifer, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance 4, Series of 2004 3 INTRODUCED, READ, ADOPTED AND ENACTED ON SECOND READING AND ORDERED PUBLISHED this 16thday of March, 2004. ATTEST: Lorelei Donaldson, Town Clerk Rodney E. Slifer,Mayor 1 4 Ordinance 4, Series of 2004 0 ORDINANCE 5 SERIES 200 AN ORDINANCE AMENDING TITLE ~, CHAPTER 3, OF THE MUNICIPAL CODE OF THE TOWN OF VAIL; PROVIDING FOR CERTAIN AMENDMENTS TO THE TOWN OF VAIL SALES TAX CODE; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, it is the desire of the Town Council of the Town of Vail ("the Town") to amend the Town's sales tax code to provide fora "Jeopardy Assessment and Demands" section; 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 adoption of this ordinance. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Sectloru ~. Title 4, Chapter 3, Section 5 entitled "ENFORCEMENT," of the Municipal Code of the Town of Vail is hereby amended by the addition of the following Section, 4- 3-5-5, to read as follows: 4-3-5-5: JEOPARDY ASSESSMENT AND DEMANDS: Notwithstanding any other provision of this Chapter Three (3), if the Finance Director finds that collection of the tax will be jeopardized by delay, in the Finance Director's discretion, the Finance Director may declare the taxable period immediately terminated, determine the tax, and issue notice and demand for payment thereof; and, having done so, the tax shall be due and payable forthwith, and the Finance Director may proceed immediately to collect such tax by distraint, levy and sale. Collection may be stayed if the taxpayer gives such security for payment as shall be satisfactory to the Finance Director. Secaloa~ 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 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 5, Series of 2004 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, order:>, 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 2nd day of March, 2004 and a public hearing fior second reading of this Ordinance set for the 16`h day of March, 2004, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Rodney E. Slifer, Mayor Attest: Lorelei Donaldson, Town Clerk INTRODUCED, Rf.AD, ADOPTED AND ENACTED ON SECOND READING AND ORDERED PUBLISHED this 16th day of March, 2004. Ordinance 5, Series of 2004 Rodney E. Slifer,Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance 5, Series of 2004 FR®~~ Stan Zemler, Town Manager RE: Town Manager's Report ._ ®ATE: MARCH 16, 2004. ACCB®ENT FREE FEBRfl9AiRY To celebrate the town's FIRST (!) ever accident free February, we are holding a spaghetti lunch at the Public Works lunchroom at high noon on Wednesday, March 17, St. Paddy's Day. Please join us if you can. This accomplishment is particularly noteworthy as February is one of our highest risk exposure months. AAflEN®i1.~ENT TO BU®GIETBNC PROCESS Pursuant to your direction from the March 2"d Town Council meeting and with your final approval, the following procedure will be added to the town's Budgeting Process document: As part of the annual budget process, external organizations such as the Vail Valley Foundation, the Betty Ford Alpine Gardens, the Vail Chamber and Business Association, the Vail Valley Chamber and Tourism Bureau, the Vail Valley Marketing District Advisory Council, and the Commission on Special Events, to name a few, may submit funding requests for the following year. These organizations follow a formalized process in which each organization submits a standard application including financial information, the organization's mission, how the requested funds will be used, and how the sponsored programs will benefit the town. Each Council member has an opportunity to review all of the requests. Staff prepares a summary of the requests along with a comparison to prior years and The Town Manager's recommendation for the upcoming year. Each Council member makes his or her recommendation on the summary sheet and staff compiles the results for discussion and approval at a public hearing. The approved amounts are included in the proposed budget subject to final appropriation when the budget ordinances are passed. Additional funding requests from external organizations may also be considered mid- year, generally at the first Council meeting in June. The mid-year review provides an opportunity for organizations that have newly-identified projects or unforeseen changes to their budgets to come forward all at the same time and for Council to provide consistent criteria and evaluation. By the first meeting in June, Council has sales tax information for the ski season, receipt of other dedicated funding, and an indication of whether the town is on budget for the first quarter. If there are no additional funds available at that time, Council may decide not to entertain any additional requests for the current year. Additional funding approved- mid-year is included in the next supplemental budget appropriation and is subject to the passing of that ordinance. TOWN IiAEETING ADEN®A March 18, 2004 4:00 P.M. Open House 4:30 P.M.-6:00 P.M. Meeting DISCUSSION OF SUMMER '04 FARMER'S MARKET AND ART AND WINE FAIRE VENUES Attached you will find a copy of i~.he Design Review Team's (DRT) decision re: venue locations for both the '04 summer's Farmer's Market and the Art and Wine Faire. Utilizing the space in front of the Austria Haus requires re-routing buses and during the past two years council has approved funds up to $5000 to offset additional expenses. Is the council willing to re-route buses for the summer's Farmer's Market on Sundays? If this site is chosen, we recommend set-up of the Farmer's Market not occur until the parade has come through the venue. This is being suggested because the 4t" of July falls on a Sunday. 13ackgrouncfl ®ecision from ®esign Review Team (®RT)/Sybilil Navas After several meetings over the last month between Rick, myself and multiple TOV staff from Public Works, Fire, Police and Community Development, as well as walking/measuring all proposed sites yesterday, the DRT has made the following determinations regarding the use of the TOV Right of Way for these two events: Vait Farmer's Market: Sundays, June 20-September 19 from 8:00-4:30. Willow Bridge Road and the International Bridge with overflow canopies allowed in the Gore Creek Promenade and in front of the Lodge Promenade on Gore Creek Drive. Rick is encouraged to work with Crossroads-to place some of his vendors in their parking lot. No canopies will be permitted at any location in the TOV Right of Way on Sunday, July 4. Also, if the construction at the Swiss Haus impacts the Willow Bridge Road Right of Way after Labor Day, the Farmer's Market will be approved to move the event to Meadow Drive in front of the Austria Haus for their last 2 Sundays. It is my understanding that Rick will request an appeal to council of this decision, specifically regarding the 4th of July denial and his desire to keep the Farmer's Market at it's original location on Meadow Drive. Public Works staff, Fire Dept and myself will be available on Tuesday, March 16 to answer questions. Vail Art and Wine Faire: Saturdays, July 3-August 7 from 9:00- 5:00. Willow Bridge Road and the International Bridge. On August 14, due to a conflict of venue with the Rotary Duck Race, the Art and Wine Faire will be permitted along Meadow Drive in front of the Austria Haus. f v 10RNOFYNL JANUARY 2004 `TAIL UINES REVIEW March 11, 2004 Overall January sales tax increased 10.0% with Retail increasing 6.2%, Lodging increased 10.4%, Food and Beverage increased 11.8% and Utilities/Other (which is mainly utilities but also includes taxable services and rentals) increased 18.7%. Town of Vail sales tax forms and the Vail Business Review are available on the Internet at www.vailgov.com. We have combined the Town of Vail and Conference Center remittance forms into one form. On www.vail ov.com the form automatically calculates. You enter your information, print the form and mail it with your check. You can download the calculating form by going to E-Services, Form Downloads, right click on Town of Vail Sales Tax Return and select Save Target As. Please remember when reading the Vail Business Review that it is produced from sales tax collections, as `opposed to actual gross sales. If you have any questions or comments please feel free to call me at (970) 479-2125. Sincerely, Sally Lorton Sales Tax Administrator .~ ~, \ __ / ` '~+ January 2004 SAES TAX V~4/L VILLAGE January January January 2003 2004 Collections __ Collections _ ---- Change Retail ~~~~~1,i73 ~~~,?1' 9 ~e~e~ Lodging '~, ~3~'1 s~ ~ ~ ~~~,~51 ~o~~/c ~~~. Food & ' beverage !, ~3~~,~0~ ~~,~9~~~ ~~o~~,, ~I Other ~'~~ ~ ~1 ~ s 1 ~ ~~~ 1 ~~.~~~~ ~~ Total ~~a~1,~~~ ~".Q~`i,~14 i 1~n~~~/o LIONSI~EAD Retail Lodging Food & beverage other Total January 2003 Collections ~1~1,~13 January 2004 Collections `~ ~~; ~~ 1 ~41,f~~, ~'~y~~(U s9~3~ `L~®1,~2~ ----- ~~,~~~ 6,1 "~~~ ~~ 3g~'~ January Change :l.~~j I ~I ~ ~.~©~~ ,. .lanuary 2004 SALES TAX CASCADE U/LLAGE/EAST VA/USANDSTONE/WEST 1/A/L ~®ta8 ~aca~a~ 2003 ~®~0@Cti®1'1S '~I 1;.;:94, 49 7 157,239 72,625 6,44a 430,01 ~JT° ®F ~VI//N ~ana~a~ 2003 ~®~lecta®ns 24,343 7,194 ~a~auary Change w6.~a% 7.3% '1 II.9% 20.7% 2.5% ~ana~ary 2004 ~®II@Ctl®IlS 17'797?5 169,577 a6,3~7 7,?~~5 441,474 ~9anuar~ 2004 C®19ecti®ns 21,521 5,745 1,1n4 1,4~Q 149,735 1 `2,739 132,976 2©`~,4L5 January Chafe ~, -13.7% -20.'~ 34.1 %° ~ I 15e4% i 10.19% 1 c .~a January 2004 SALES TAX TOTAL January January January 2003 2004 Collections Collections Change Retail ~~a~2,~~'~ ~~~,~~~~ ~ ~% Lodging 'r~~~,~~ ~ ~®~9~ ~~ ~~~~ ~~, ~°f° ~ Foodl & ~ Beverage ~~d~~,~;~ ~ ~~~1 y~~~~ '~ ~ ~ ~~/o Utilities & Other TOtal 'I'AII.~ SUMMARY January 2003 Collections January 2004 Collections January Change FOOD 142,403 128,259 -9.9% LIQUOR 28,417 32,286 13.6% APPAREL 81,088 85,152 5.0% SPORT 280,664 317,891 13.3% JEWELRY 25,055 27,116 8.2% GIFT 15,277 14,884 -2.6% GALLERY 6,250 15,693 151.1% OTHER 72,729 70,736 -2.7% HOME 708 870 22.9% OCCUPATION T~TAIL 652,591 692,887 6.2% I~U~LIC NIEE°fING N®~IC~ vAIL REIN!/ESTnAENT AdDTHORITV SPECIAL tUIEETINC AGENDA TOES®AY, AAARCIi ~6, 2004 9:55 P.iUI. !TAIL TOWN COUNCIL CIiAAABERS 1. Russ Forrest BTEIitA/TOPIC: Request to approve Vail Reinvestment Authority Resolution iVumber 3, Series of 2004 and the development agreement to facilitate condemnation of P-3 & J from Vail Resorts to remove certain protective covenants on the site that impede development. ACTION RE(~UESTE® OF COUNCIL: Approve or deny Resolution 3, Series of 2004 BAC~fGROUN®: Vail Resorts has requested that the Vail Reinvestment Authority, upon approval of the P-3 & J Reinvestment Plan by the Vail Town Council, authorize the legal counsel for the Vail Reinvestment Authority to condemn the P-3 & J parcel and then remove certain covenants that impede redevelopment. Construction on the P-3 & J project can not occur until the covenants have been removed and the Vail Town Council approves a final development improvement agreement which will include an alternative loading and delivery solution to mitigate the temporary loss of loading and delivery from the Hansen Ranch Road area (30 min.) (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) d ,. AAEnAORANDl1N1 TO: Vail Reinvestment Authority FROM: Director of the Vail Reinvestment Authority DATE: March 16, 2004 SUBJECT: A request for approval of Resolution No. 3, Series of 2004, authorizing the Vail Reinvestment Authority's legal counsel to condemn P-3 & J (now Lot P-3, Block 5A, Vail Village 5th Filing) which is owned by Vail Resorts for the purpose of removing covenants that impede development of this site. 11. ®ESCRIfPTI®N ®F RIEQUEST Vail Resorts Inc. is requesting that the Vail Reinvestment Authority condemn lot P-3, Block 5A, Vail Village 5th Filing to remove certain protective covenants that impede redevelopment of the site. This would be done subject to an agreement that would specify the process for the condemnation action (i.e. legal steps for condemning the land and removing the covenants). This agreement will be presented to the Vail Reinvestment Authority on March 16, 2004. All costs that the Vail Reinvestment Authority will incur associated with this action will be. compensated by Vail Resorts as part of an executed agreement between the VRA and Vail Resorts Inc. The Town of Vail has approved the development plans for P-3 & J with the condition that a development improvement agreement be completed. These plans include the creation of a park and providing additional for-sale parking to the community. The major issue that was discussed with the Town Council regarding a development improvement agreement was the creation of an alternative loading and delivery facility to replace the loading and delivery area currently on Hansen Ranch Road. Vail Resorts working with Town Staff has proposed a temporary alternative location in the general proximity of Lift 1. However, the details of the timing of the creation of this alternative loading and delivery facility have not be completed. Vail Resorts will not be able to build P-3 & J until this final condition of approval has been addressed to the satisfaction of the Town Council. Vail Resorts is planning on initiating construction of the site in May of 2004. 3. STAFF REC®I~AAflEfV®ATI®~I Staff recommends that the Vail Reinvestment Authority approves Resolution No. 3, Series of 2004 authorizing their legal counsel to initiate the condemnation process on P- 3 & J. Staff makes this recommendation based on the fact that construction on P-3 & J will not be allowed until Vail Resorts receives approval for their development improvement agreement by the Town Council. Attachment 1: Resolution No. 3, Series of 2004 ter, RESOLUTION N0.3 Series of 2004 A RESOLUTION DECLARING THE INTENT OF THE VAIL REINVESTMENT AUTHORITY TO ACQUIRE CERTAIN PROPERTIES IN THE P-3 ~ J REINVESTMENT AREA FOR THE SPECIFIED PUBLIC PURPOSE OF (REDEVELOPMENT IN CONFORMANCE WITH THE P-3 8~ J REINVESTMENT PLAN, FOR GOOD FAITH NEGOTIATIONS TO ACQUIRE SAID PROPERTIES, AND AUTHORIZATION TO INITIATE AN ACTION IN EMINENT DOMAIN TO ACQUIRE SAID PROPERTIES IN THE EVENT GOOD FAITH NEGOTIATIONS DO NOT RESULT IN AN AGREEMENT TO ACQUIRE SAID PROPERTIES. WHEREAS, the Town Council of the Town of Vail adopted the P-3 & J Reinvestment Plan on March 16, 2004; and WHEREAS, the P-3 & J Reinvestment Plan authorizes actions by the Vail Reinvestment Authority to redevelop the area designated as the P-3 & J Reinvestment Area; and WHEREAS, redevelopment of the P-3 8 J Reinvestment Area (the "Project") is necessary to alleviate those conditions of blight found in the P-3 & J Revitalization Study; and WHEREAS, acquisition of the properties described in Exhibit A attached hereto and incorporated herein by this reference (hereinafter the "Properties"), is necessary for the completion of said Project; and WHEREAS, it is necessary for the Vail Reinvestment Authority to acquire immediate possession of the Properties in order to complete the Project in a timely manner; and WHEREAS, the Vail Reinvestment Authority has determined that it is necessary to acquire the Properties, and that, in the event that good faith negotiations do not result in voluntary acquisition of unencumbered fee title to the Properties, it is necessary that the Vail Reinvestment Authority acquire said Properties through the use of the power of eminent domain as authorized by the P-3 & J Reinvestment Plan, and in Article II, Section 15 of the Constitution of the State of Colorado and in C.R.S. §§ 38-1-101, et seq., and 38-7-101, et seq. NOW, THEREFORE, BE IT RESOLVED by the Vail Reinvestment Authority, that: 1. The Vail Reinvestment Authority hereby finds that it is necessary to acquire the Properties described in Exhibit A hereto to achieve the goals of the P-3 & J Reinvestment Plan. ~ .,. 2. The Vail Reinvestment Authority does hereby declare its intent to acquire unencumbered fee title to the Properties described in Exhibit A hereto from the Owners and all others having an interest therein. 3. The Vail Reinvestment Authority specifically authorizes that negotiations between the Vail Reinvestment Authority and the Owners of the Properties occur in good faith, but in the event such negotiations are unsuccessful, acquisition of the unencumbered fee title to the Properties from the record Owners thereof and all other Owners having an interest therein, through use of Authority's powers of eminent domain granted by the Constitution of the State of Colorado, by Statutes of the State of Colorado, and the P-3 & J Reinvestment Plan is hereby authorized. 4. A copy of this Resolution shall be forwarded to the record Owners of the Properties and all parties who may have an interest in the Properties. INTRODUCED, READ AND ADOPTED by a vote of + For and _ Against at a regular meeting of the Vail Reinvestment Authority on , at 7:00 o'clock p.m. at Vail ,Vail, Colorado. ATTEST: Chair Secretary/Executive Director 2 ``,, .~. EXHIBIT A Legal Description Your kind words, prayers, and contributions are sincerely appreciated. They have been a source of comfort and strength for all of us. Thank you and may God bless you,. GJ "~ ~-- r/ y-Ys ~ n~nceN.~c- ~.cr <-~G~cu~f ~~1 0 ~- S ...~ s a ~ n UNtT~Q v W ~` ~ „~ ~ 4 n ~~ B S ~. -aY N ~~ o ~.~ _ ~ ~~ ~~ pp~~~~~~~ N CNOV ~ O ~ ~^ U7 O ^~ A 0 M1 a 1 Z :~ ~ ~ w ~~ ~ ~ Q~ v~ ~ ° -d C7 ~ o G o '~ o ~ ~U ~ ~~ '~ `~ > '~ ~~ ~ w Jason Fleishman September 2, 1980 -February 1, 2004 Do not stand at my grave and weep When you wake in the morning's hush, [ am not there, 1 do not sleep. I am the swift uplifting rush I am a thousand winds that blow, Of quiet bird's encircled flight, I am the diamond glints on snow, I am the soft star that shines at night. I am the sunlight on the ripened grain, Do not stand at my grave and cry, I am the gentle aututnn rain. I am not there, I did not die. Mar-OB-04 14:58 From-NAIL VALLEY FOUNDATION + T°018 P.O1/02 F-502 ~~ v ~z Town of Vail Pam Brandmeyer (970)'479-2157 fax yve are rapidly approaching the American Ski Classic, which again promises to be a great celebration of skiing. In order to maximize your sponsorship benefits, we wanted to remind y®u of your contract benefrts, which were outlined in the ~hibit A that was faxed to you with your contract. !Ne also need to receive any banners, logos, commercials and other sponsorship fulfillment items at the Vail Valley Foundation offices as soon as possifale. We can also arrange for apick-up of these items by our Sales team. ~re~ent~~ ~ end ~®coa~ rn#a~ige'r~s 16 Credentials will be dalid for skiing at Vail and Beaver Creek March 16-22, 2004, and will provide access to the VIP hospitality tent during designated hours on March 18-Z0, 2004. gistration is located at Golden Pear and opens ~'a~esdayo March ~.~ at 7~3® a.nto Please let us know if somepne other than yourself will be plckirlg up your credentials, social invitations arjd gifts. 16 Welcome Party Wednesday, March 17 2 Legends of Skiing Banquet Thursday, March 18 please note: For racers pdrtici~atirlg in F®rd Cud 16 Gorsuch Tea Dance Friday, March 1~ 16 Sponsor Party/Second City performance Friday, March 19 16 Ford Cup Finals Party Saturday, Mara ZO 2 Gala dinner and auction Saturday, March ZA Please nor?e: For racers participaeing in Ford Cup 16 First Light First Tracks ski and brunch Sunday, March '21 8 VIP Gift Bag(s) ~®rd ~~ 1 Ford Cup Team branding 1 Ford Cup race spots 0 Pairs of Salomon skis. with bindings @3~e need t® l~eeeive the names® gender and age of your racers by the close ®f business ®n Vednesday® March ~01~ All racers will participate iin al fnandicappir~g session ®n 1'hursday® March i~, 2000 Mar-08-04 14:58 From-NAIL VALLEY FOUNDATION ¢ T-018 P.02/02 F-502 ~dl'91~,1°~ Your contract calls for the following number of banners: Z Legends ®n-Course 0 Inflatable 2 Legends Finish 0 Teint 2 Ford Cup On-Course ; Z Ford Cup Finish Banners should measure 1 meter by 4 meters and should be delivered to the VVF no later than March 12, 2004. °_°Bic~~°_~~9e Vid~® ,~splav c~eett 1 Commercials Commercials need to be in a Beta SP format and no longer that 30 seconds in length. Please send commercials and direct any questions to: FFF ProducCions 610 W. LionsFlead Circle Landmark Suite 83 flail, CO 81657 Attn: Cheryl8oteomley (970) 479-6333 1 Logo(s) on logo loop Logos must be in ahigh-resolution format, ideally an .eps or .di f le format, and should be vector line are. If your logo is in a .jpg or .tif format for similar), it should be no less than 640x480 vuith 72 dpi or higher. ~~m: EEC procyuctions has your logo end commercial on file. If you have any questions pertaining to the above items, please direct them as follows: ~~ ~l~~ ~~llle ; Cheryl Lindstrom (970) 949-1999 (970) 748-5946 (970) 3~0-1512 clindstror Ca~vvf.org Paul Chadwick (970) 949-1999 (970) 748-5918 (970) 31-6018 pc adwick yvf.org Shipping Address: 90 Benchmark Road, Suite 300 Avon, C® 81620 %t is most helpful if you can give us a "heads up" when items are shipped so that we can prepare for their arrival. Town of flail ~~~ ,~, r-- E ~ ~ ~~ I` l ~~ k: ~~~ ,V ~, ~ ~®®~4 (C®~9~14R~®E ~AP7EISI~Af~ ~KH ~~SSg~ Tentative Schedule of Events Updated March 4 ~a~esda~, I~ar~P~ Il~o 7:00 am-6:00 pm Registration/Gift Bag Room Open @4i9eda~esda~, ~aa~~9~ Il7I 7:00 am-6:00 pm Registration/Gift Bag Room Open 6:00 pm Budweiser Street Beat 8:00 pm Welcome Party ~'~aursda~/, ~ar~~O Il~o 7:00 am-6:00 pm Registration/Gift Bag Room Open 7:00 am-10:30 am Breakfast, VIP Tent 9:00 am Legends GS Inspection, Golden Peak 10:00 am Legends GS Race, Golden Peak Legends GS Awards 11:30 am-2:30 pm Lunch, VIP Tent 2:00 pm Team Meet and Greet, VIP Tent 3:00 pm Ford Cup Handicapping 7:00 pm Legends of Skiing Banquet f~a~uda~, It~a~rc9~ ~1~° 7:00 am-5:00 pm 7:00 am-10:30 am 9:00 am 11:30 am-2:30 pm 1:30 pm 4:30 pm 7:00 pm 7:30 pm Registration/Gift Bag Room Open Breakfast, VIP Tent Ford Cup Race -Day 1 Lunch, VIP Tent Future Legends Race Gorsuch Tea Dance Pre-Show Reception, Vilar Center for the Arts Second City performance at the Vilar Center for the Arts ~a$aua~da~, P~a~~ih ~®o 7:00 am-5:00 pm Registration/Gift Bag Room Open 7:00 am-10:30 am Breakfast, VIP Tent 9:00 am Ford Cup Race -Day 2 11:30 am-2:30 pm Lunch, VIP Tent 2:00 pm Ford Cup Finals Awards 7:00 pm Mountains of Hope Benefit Dinner ~a~~da~, I~dau~cB~ X11: 7:00 am First Light, First Tracks 9:30 am Brunch 1 J ~®®~ C®UN~RYWI®E AMERICAN SKI CLASSIC Tentative Schedule of Events Updated March 4 ~uesda~, March ~6e 7:00 am-6:00 pm Registration/Gift Bag Room Open 1A/ednesdal/, March 9.7J 7:00 am-6:00 pm Registration/Gift Bag Room Open 6:00 pm Budweiser Street Beat 8:00 pm Welcome Party ~'hursd March Y~° 7:00 am-6:00 pm Registration/Gift Bag Room Open 7:00 am-10:30 am Breakfast, VIP Tent 9:00 am Legends GS Inspection, Golden Peak 10:00 am Legends GS Race, Golden Peak Legends GS Awards 11:30 am-2:30 pm Lunch, VIP Tent 2:00 pm Team Meet and Greet, VIP Tent 3:00 pm Ford Cup Handicapping 7:00 pm Legends of Skiing Banquet ~raday, March Sl,~c 7:00 am-5:00 pm 7:00 am-10:30 am 9:00 am 11:30 am-2:30 pm 1:30 pm 4:30 pm 7:00 pm 7:30 pm Registration/Gift Bag Room Open Breakfast, VIP Tent Ford Cup Race -Day 1 Lunch, VIP Tent Future Legends Race Gorsuch Tea Dance Pre-Show Reception, Vilar Center for the Arts Second City performance at the Vilar Center for the Arts Saturday, March ~®e 7:00 am-5:00 pm Registration/Gift Bag Room Open 7:00 am-10:30 am Breakfast, VIP Tent 9:00 am Ford Cup Race -Day 2 11:30 am-2:30 pm Lunch, VIP Tent 2:00 pm Ford Cup Finals Awards 7:00 pm Mountains of Hope Benefit Dinner S~a~day, ~iiarch ~bo 7:00 am First Light, First Tracks 9:30 am Brunch X ~ ~ cb LI,Ut,Gc~. ~~;s~ X44 -Thursday, March 11, 2004 -/A19. ®AI~V 970.949. 55/vaildaily.com ---1-_ ~` ~ ~ ~ - O ~ .: ~, ;: ~~~ Cyc I i ng superstar La ri ce ------ .~-~~--~--.- Armstrong will compete in Labor Day cycling race ®ver time this could ~~ ~Buffif T~o~o~v~n§®e~ 'DAILY STAFF WRITER Wanna see five-time Tour de France winner Lance Armstrong race? It should be easy this year -you won't have to go any farther than Vail. He's committed to riding 'in the Vail Rocky Mountain Classic professional race Labor Day weekend in one of his few North American appearances. The race is expected to attract up to 300 riders -some fresh off the Tour de France - and thou- ' sands of visitors to ,~ I the Vail area. It's part ,'lien .. of the 2004 Pro ~ cycling Tour, which °"~° '' ~ ~~ will also run races in .' I Philadelphia and San Francisco. I `~' ~' Armstrong's pres- ' ---- ---! ence will be a catalyst ~~~~. _ for the event, said ~~~STRO~G Frank Johnson, exec-. - utive director of the Vail Valley Chamber and Tourism Bureau. "It solidifies the Pro Cycling Tour for Labor Day," he said. "He's obviously the biggest name in cycling. Having him committed to participating in this event will go a long, long way toward helping finish the fund-raising that needs to be done to make this an extraordinary event." "We are delighted that Lance will be racing in this inaugural Pro Cycling Tour event in Vail," added David Chauner; president and chief executive of Thresh- old Sports, producer of the Pro Cycling Tour. "This is a fantastic opportunity for the Vail community and for cycling fans from around the U.S. to witness one of cycling's greatest champions fresh after his epic Tour de France performance." More important is the fact that Arm- strong will attract corporate sponsors. The event will require $1.5 million or more to produce, and much of the money will come from sponsors. Armstrong has attained hero status for his Tour de France performance and for his comeback from testicular cancer. grow into an event that makes ]Labor lay weekend. V~Ie don't have a lot of regular leisure visitors. 'phis give us a hook to attract significant numbers of people." G~P~B'ti~ ~®~9Q~~®B'll EXECUTIVE DIRECTOR, VAIL VALLEY CHAMBER AND TOURISM BUREAU By the time the Vail races occur he will have had a chance to become the only six-time winner of the grueling French bike race. That 3,400 kilometer (2,125 miles) race takes nearly a month and is the world's premier cycling event. He's won it so many times cycling wags. are calling it "Tour de Lance." But the Pro Cycling Tour in Vail will feature more than just Lance Armstrong. It is also supposed to attract Che best men and women's cyclists in the world to compete on road courses for two days in Vail. The weekend will kick off Sept: 3 with a 100-mile amateur race from Denver's lnvesco Stadium to Vail. Professional races will begin.Sept: 4 with circuit-races throughout the area and will conclude with a men's and women's pro circuit race in Vail Village. The Vail Valley Chamber and Tourism Bureau is working with Legacy Sports to produce the event. The Labor Day weekend is traditionally a slow period for business. "Over time this could grow into an event that makes Labor Day weekend," said Johnson. "We don't have a lot of reg- ular leisure visitors. This gives u.s a hook to attract significant numbers of people." Cliff Th.ompso~~ can be reached via e- »za~il at: cthompsor~C vaildalay.corn or by cal[i.~2g 949-0555 ext. 450. THE VAIL DAILY 970.949.0555/vaildaily.com - i Beaver Creek _ .~ _ -- ~ `_- __ _ - headed for - -~' .another ~ _ _ - - record. year - ~, _ __ _ By Cliff Thoreopson t~AILY STAFF WRITER - A , healthier national economy, ~ belt tightening and increased prices slope- side~are showing.up on Vail Resorts' bottom line at the end of its second quarter. The company's Novem- ber through January opera- tions produced record rev- enue and a smaller-than- expected $6.7 million loss, as is traditional for the sec- ond quarter. That's $IO mil- lion less than last year's sec- ond-quarter loss. Total. revenue for the quarter was $247 million, down $1 million, but that was offset by a larger 2 per- cent drop in operating expenses to $200.6 million. "It's nothing but glow- ing;" said the company's chief executive, Adam Aron. "It's a fabulous quarter. We are'extremely proud of our achievement in 2004." Those earnings follow the company's $14.5 million loss in fiscal 2003, a slump blamed on the war in Iraq. The war broke out a year ago, drying up the.flow of out-of-town guests during what's typically the compa- ny's most profitable quarter. The company last year announced a $25 million cost-cutting program that included elimination of positions, paring marketing budgets and other measures. ~IUS~IIIng ~G~V9 Beaver Creek is on pace for another record season, Aron : said. Last season, Vail's sister resort dogged just over 700,000 skier days and Aron said it will come close to 800,000 this season, he said. So far this season;. Beaver Creek is reporting ;J. - r -, Vail Resorts reported record revenue for the three. mi and January, and officials said Beaver Creek could sei the second season in a row. 7 percent and hotel book- ings are up 5 -percent," he said. "Vail bookings in par- ticular are-up 33.percent." Ski passes, on -the other hand, are one of the compa- ny's strategies for attracting in-state skiers, and accord- ing to Aron, it. worked. Despite the apparent drop in day skiers, Vail Resorts sold more than ].20,000 ski pass= es, up 9 percent, mostly to Colorado residents, Aron said. = "We've got the money banked, whether they ski or not,' he--said of _t.he pass sales. The expected compe- tition from Infrawest, which began selling passes that can be used at both Winter Perk and Copper Mountain, did not materialize, Aron said. WILDRIDGE SIl~GLE FAMILY ~- .. I- ~, ~, pis 1~~~ ~ a . ~ ~~~ ' - ,~ ~' - ~~-' ~ - -- --- - __ ~_-_ __ ~I 3 bedroom 2 bath recently updated with hardwood floors, new fireplace, new appliances and granite TO: Town Council f~RO~I: Stan Zemler, Town Manager Greg. Hall,. Public.VVorks Director Dwight Henninger, Police Chief Suzanne Silverthorn, Community Information Officer ®ATE: March 11, 2004 SU13J1`CT: Quarterly Upate on I-70 Mitigation Measures 9. SACKGROUY~D On Oct. 21, 2003 the Vail Town Council voted to approve first reading of an ordinance restricting the use of compressed engine brakes on trucks between milepost 181.5 and 173 in Vail, except for the aversion of immediate and imminent danger. The motion to approve first reading of the ordinance also included a provision to delay second reading to allow time for town staff to prepare a list of alternative approaches. The legislation was introduced to call attention to the issue of I-70 noise and to signify the Town Council's intent to take aggressive and proactive measures to reduce highway noise, which has negatively impacted Vail's quality of life and its economic vitality. On Dec. 2, 2003 the Vail Town Council voted to table to March 16, 2004 second reading of this ordinance, directing the town staff to pursue alternative approaches, including a Memorandum of Understanding (MOU) between the Town of Vail and the Colorado Motor Carriers Association (CMCA) (see attached). In addition, the Council authorized the Vail Police Department to spend up to $46,000 for aone-year pilot program for I-70 traffic enforcement and education. The MOU between TOV and CMCA was executed on Dec. 3, 2003. Since December, the town staff has pursued four areas of focus to mitigate I-70 impacts on a short-term and long-term basis: 1) education; 2) enforcement; 3) engineering; and 4) legislation. A summary of the actions, to date, is presented below. 2. PARTiVERS~BIP ACTBOPlS A. (E®IdCAT1O1~ In anticipation of the I-70 traffic enforcement campaign to be launched by the Vail Police Department in April, TOV has prepared a public education communications plan with strategies and tactics in the following categories: 1) setting the tone through local awareness; 2) creating real- time notification for the traveling public; 3) creating advance awareness for Front Range guests; 4) working to inform truck driver and motorcycle constituents of speed control and added enforcement of muffler/noise regulations; and 5) coordinating messages with participating agencies to ensure support and participation. Estimated cost of deployment is $5,000 to $8,000. A letter has been sent to CDOT requesting partial funding of this program with Federal Highway Safety funds. • Media coverage has included a preview of the enforcement campaign aired on KUSA-TV Channel 9 on March 4. Additional coverage is yet to come. • CMCA is pursuing $50,000 in grant funding to develop and disseminate educational material in the form of audio compact discs, flyers and a web- . based information program for commercial vehicle drivers who use the I- 70 corridor. Scripts for the "Crossing the Rockies" project are currently being prepared and will be reviewed by the TOV prior to production. Once funding is secured, the project will be deployed within 60 to 90 days. • An I-70 working group for commercial vehicles has been organized and will help serve as an information conduit. TOV will participate in the discussions. • TOV is currently researching implementation of an education campaign to assist individual properties with tips on how to use "sound masking," such as exterior or interior water fountains, to reduce the annoyance from highway noise. The home noise audits will also include information on acoustically rated windows and doors, plus lower-cost alternatives, such as sealing cracks around doors and windows. B. ENFORCEMENT During the month of February, TOV officers underwent traffic stop training as well as ride-alongs with the Colorado State Patrol for enforcement consistency among the two agencies. The remainder of the patrol staff completed a four hour classroom training session conducted by the Colorado State Patrol regarding enforcement of the motor vehicle code as it relates to commercial vehicles. Vail PD also conducted "train the trainer' sessions whereby one representative from each of the Vail patrol teams rode with a Colorado State Patrol trooper and conducted traffic stops on commercial vehicles to learn about safe methods and locations within Vail to conduct these enforcement actions. The Vail patrol team representatives then instructed and rode with each Vail officer to conduct a minimum of two commercial vehicle traffic stops to demonstrate to the trainer the stop could be conducted safely and effectively. Vail PD Patrols will begin in April and will be augmented by a public awareness campaign. Officers will issue discretionary warnings during the first four months of the campaign, with the exception of egregious offenders. Then, in August, the campaign will evolve into stricter enforcement. Members of the Vail PD have met with representatives of Quest Technologies, a sound monitoring equipment company, for training on the department's existing sound meters and to discuss if the proposed enforcement techniques and Town Codes are appropriate. Quest felt the department has the proper equipment and laws in place to conduct noise enforcement on I-70. However, it was suggested the town may want to reconsider reducing the existing decibel levels for vehicles on the highway. Vail PD has purchased rear facing antennas for the existing radar units for use on the interstate. These new antennas are being installed in the new patrol cars. A fetter from Mayor Rod Slifer was sent to the Colorado State Patrol chief requesting that additional troopers be assigned to the area, as well as a D~ request to work collaboratively with TOV in implementing the memorandum of understanding between TOV and CMCA. Similar communication has been undertaken by CMCA. TOV has arranged a meeting with its partner agencies on March 24 to outline the program and enlist support. Representatives from CSP, CDOT and CMCA will be in attendance. C. ERICI~EEF2BI~G In Februrary, TOV met with CDOT staff to review the town's multiple requests (outlined in an earlier letter) for short-term and long-term noise mitigation. CDOT has officially responded and has committed to: 1) assisting in the coordination of the town's summer demonstration project; 2) analyzing the use of alternative (quiet asphalt) pavement treatments to be used for the I-70 overlay scheduled and budgeted in 2008; and 3) to investigate the use of speed limit warning signs. Also in February, TOV issued a request for proposal for noise mitigation services. The RFP indicated the town's desire to analyze existing highway noise impacts and to develop noise mitigation alternatives. Proposals were due to the town on Feb. 17. There were 5 responses. Three finalists were selected with interviews conducted Feb. 27. The town staff has selected Hankard Environmental of Ft. Collins to conduct noise analysis before and after the speed enforcement campaign; design and conduct a noise barrier test demonstration project in conjunction with the Colorado Motor Carriers Association for this summer; investigate new and innovative technologies and appropriate solutions; and prepare applications for federal discretionary funding for an innovative demonstration project. The staff is requesting Council action to approve up to $90 000 to enter into a contract with Hankard Environmental. Funding for this project is contained in the 2004 capital projects budget. (Scope of work is attached). TOV proposes to work with Hankard Environmental to produce a proposal to be used to introduce the concept of a noise wall demonstration project to be presented to Colorado's Congressional Delegation. Once the proposal has been developed, CMCA has agreed to work with the TOV to develop a lobbying strategy for $1 to $3 million in federal funding. ®. LEGBSt_ATV®~I o At the request of the Colorado Motor Carriers Association, TOV is preparing a letter to the Colorado Municipal League asking for assistance in exploring the development of state legislation which could provide for increased penalties for failure to maintain or alter a muffler. 3. STAFF REC®Ii~flflERl®AT9O~! Staff recommends the following Town Council actions on March 16: 1) Authorize the town manager to approve up to $90,000 to enter into a contract with Hankard Environmental for noise monitoring and mitigation services; .~~ 2) Authorize the town manager to continue with the alternative actions outlined in the Memorandum of Understanding between the TOV and the Colorado Motor Carriers Association; 3) Table or reject second reading of Ord. No. 28, Series 2003 (engine brake ban); 4) Schedule date for next quarterly review. Attachments --Memorandum of Understanding between Town of Vail, Colorado Motor Carriers Association --Proposal from Hankard Environmental Inc. --Ordinance No. 28, Series 2003 d ~< ORDINANCE 28 SERIES 2003 AN ORDINANCE PROH1131TING THE USE OF DYNAAAIC BRAKING DEVICES ON A CERTAIN SECTION OF INTERSTATE HIGHWAY 70 WITHIN THE TOWN OF VAIL AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, it is the desire of the Town Council of the Town of Vail ("the Town") to mitigate and reduce the making and creation of excessive, unnecessary and unusually loud noises caused by dynamic breaking devices on Interstate 70 within the Town of Vail; and WHEREAS, it is the Town Council's belief that the noise associated with the engagement of dynamic breaking devices is unreasonable in its time, place and manner, and that such noise is detrimental to the public health, welfare, comfort and safety of the residents of the Town of Vail; 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 adoption of this ordinance. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF.VAIL, COLORADO, THAT: Sectlon ~. Section 5-1-1 "DEFINITIONS:" of the Municipal Code of the Town of Vail is hereby amended by the addition of the following definition: DYNAMIC BRAKING DEVICE: A device used primarily on trucks for the conversion of the engine from an internal combustion engine to an air compressor for the purpose of braking without the use of wheel brakes. Sectl®r>I 2. Section 5-1-7 G "MOTOR VEHICLE NOISE:" of the Municipal Code of the Town of Vail is hereby amended by the addition of sub-section four (4) as follows: 4. Operation of a Dynamic Breaking Device: Notwithstanding any other provision of this Title 5, it shall be unlawful to operate any motor vehicle on Interstate 70, between milepost 181.5 and milepost 173, within the town limits of the Town of Vail, Colorado, with a Dynamic Braking Device engaged, except for the aversion. of immediate and imminent danger. Ordinance 28, Series of 2003 Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not 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. Section 4. The Town Council .hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 5. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. >. ~= Ordinance 28, Series of 2003 O INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 21st day of October, 2003 and a public hearing for second reading of this Ordinance set for the 4th day of November, 2003, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Rodney Slifer, Mayor Attest: Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 16th day of March, 2004. Rodney Slifer, Mayor Attest: Lorelei Donaldson, Town Clerk Ordinance 28, Series of 2003 ~.~ ,~. 6i~ernorandulrn of Understanding between the Town of Vail and the ~®i®rado Motor Carriers Association This emorandum of Understanding is entered into on this c~ day of 2003, by the TOWN OF VAIL, a Colorado municipal corporation, hereinafter referred to as ("the TOV"), and the COLORADO MOTOR CARRIERS Association, a Colorado non-profit corporation, hereinafter referred to as ("the CMCA"). WITNESSETH WHEREAS, the TOV and the CMCA recognize that there are quality of life and economic issues for Town residents and guests due to the proximity of the TOV to Interstate 70; and WHEREAS, the TOV and the CMCA believe it is prudent to take amulti-faceted approach to mitigate noise and other issues through a partnership; and WHEREAS, the TOV and the CMCA agree to move forward in the areas of education; enforcement and engineering to the best of their abilities and in a spirit of collaboration and cooperation toward mitigating noise on the I-70 corridor through Vail; and WHEREAS, the TOV and the CMCA, working together, can employ their combined resources to leverage Federal and State assistance toward that end. NOW THEREFORE, the parties agree as follows: ~dlucatior~ Mountain ®rtving Eda~cati®n Program CMCA and the TOV will cooperatively work on an information program with trucking companies utilizing the I-70 corridor to ensure safe driving. The program will emphasize the importance of speed compliance, use of chains and the appropriate use of engine brakes. Additional involvement by the Colorado State Patrol and Colorado Department of Transportation will be encouraged and efforts to add a `dour speed is" radar display component to the variable message signs at mile marker 177 and 173 will be pursued by both parties. CMCA will work with the TOV to expand its trucker education program to include brochures, CDs and other materials which will better inform drivers on how to safely operate through the mountains. The CMCA will assist toward the education component and will join the TOV in working with state and federal agencies to procure additional funding for this effort, if needed. ~nf®rceent increased Speed Enforcement CMCA a nd t he T OV w ill work together a nd a dvocate greater a nforcement o f e xisting speed limits by the State Patrol and the Vail Police Department for all vehicles on I-70 through the area. Both parties shall make a formal request to the State Patrol for greater enforcement activities. Increased Enforcement of Current State Law Requiring Mufflers on Vehicles with Engine Brakes CMCA and the TOV will seek greater enforcement of the existing state law which requires that trucks with engine brakes Qake brakes). have. mufflers. This law provides a $500 fine for any truck with an engine brake and not having a muffler. Both agencies will ask the Ports of Entry staff at the Dumont and Loma (near Grand Junction on I-70) Ports of Entry to strictly enforce this law. As part of this effort, town officials will seek to effectively enforce the state law on local roadways and job sites within the TOV. Further, CMCA and TOV will ask that roadside safety inspectors include a check of the muffler as part of their safety reviews on trucks. Engine Brake Muffler Legislation in Other States The Colorado Legislature with the assistance of CMCA was the first state in the country to pass a tough measure citing trucks without a muffler and possessing an engine brake. CMCA h as w orked w ith i is a ffiliates i n o ther s fates for p assage o f a s imilar m easure which will further reduce the numbers of loud trucks passing through our state. Already, 117ontana and Nevada have passed the same law and several other states are considering it. As part of this agreement, CMCA agrees to work with its affiliates in other states for the passage of this measure requiring mufflers on trucks with engine brakes. Investigate Legislation Regarding Failure to Maintain or Alter a Muffler Current state law provides a nominal ($15) fine for vehicles which may not possess a muffler or have a faulty muffler, both contributing to significantly high noise levels. Under this MOU, CMCA in conjunction with the TOV will explore the development of state legislation which could provide for increased penalties for failure to maintain or alter a muffler. T his legislation would apply to all vehicles (automobiles, m otorcycles, trucks, etc.). Engineering Noise Monitoring CMCA will seek to obtain a noise meter for the TOV to measure noise levels on I-70 as well a s within t he c ommunity. TOV, w ith t he c onsent o f C MCA, will seek third p arty technical assistance to establish baseline measurements for noise levels associated with various t ypes o f v ehicles w ith t he i ntent t o d evelop a n e nforceable m aximum d ecibel standard. The third party will also .work with the TOV to ensure that staff is trained in the proper u se o f s uch meters. In a ddition, the t hird p arty s hall c onduct s cheduled n oise tests to evaluate the ongoing effectiveness of all mitigation efforts. CMCA and the TOV agree to work on this effort and will meet with the third party to agree on the scope of work and the duration of measurements. Pilot Decibel Reduction Project Using the research identified above, CMCA and TOV will jointly evaluate whether a maximum decibel standard for all vehicles passing through Vail could be developed based on EPA noise standards for trucks and other vehicles. Any decibel-oriented ordinance would apply to all vehicles on the corridor. Temporary Noise Barriers TOV and CMCA will explore the use of temporary noise barriers (trailers) as a 30-day experimental program to measure noise reduction impacts prior to construction of permanent noise barriers. This program will use the T-Rex noise abatement actions as a model. CMCA will seek the necessary trailers for this project. The TOV will assume liability for these trailers while in use during the experiment. ~~. :` 2 PI®ise Wail Funding CMCA will work with TOV to begin discussions with state and federal officials to seek funding for a phased noise wall program. CMCA along with TOV officials will meet with state and federal officials to explore various avenues for funding. hlationai Researcio CMCA agrees to pursue with the American Trucking Associations a study on overall noise levels associated with trucks and measures that may be taken to mitigate such noise. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be made the day and year grst above written. ~olorad otor Carriers Association TOWN OF VAIL, a Colorado A or non-prgft-~poration municipal corporation D. Fulton, President ~ n Zemler, Town Manager 3 ~ ANI~RI~ ~a~®~~~~~~~. The highest quality noise and vibf-ation consulting ACOUSTICS AND VIBRATION CONSULTING services in the Rocky Mountain Region. ~ Defining the Issues: Noise and vibration problems can be complex. We are specialists in this field, and will first work with all project stakeholders to develop a work plan that will meet the goals of the project. We have the experience to effectively communicate with diverse groups such as agencies, the public ' other engineers, and marketing staff: Measurements: -------- If measurements are required we have a full line of equipment at our disposal and can tackle any measurement survey, large or small, near or far, simple or complex. Measurements are not always necessary. We will help you decide if they_are_appropriate. for.your.project._ ~ Modeling: -------- Modeling can be an effective analysis tool either in conjunction with measurements or at times without. We are versed in the Lise of STAMINA and TNM for highway projects, Federal Transit Administration methodologies for rail projects, ISO models for industrial sites, and modal analysis. We can apply modeling to a wide range of projects including industrial, mining, aircraft, product development and architectural. ~ Mitigation Design: ® We design effective mitigation solutions including source treatments for products and equipment, barriers, and enclosures. We understand an ® optimum solution requires a balancer of issues such as cost, weight and space. We work with our customers to produce a viable solution. ~ _ Compliance: ® -------- We sort out the dB(A)'s from the VdB's and determine your compliance with project specifications or government regulations. We are familiar with a wide range of noise and vibration regulations on federal, state and ® local levels. Presentations: ® ----'--- Our specialty. We can deliver the results of our studies in layman's terms ' ® to large or small audiences. Also, we produce the highest quality technical Node Potkigation Res~iies reports tailored to your needs. a ® d Expert Witness Testimony: ~~ -------- We have a solid technical background and courtroom experience. ~ a ® ~ o Satisfaction: -------- Almost all of our customers are repeat customers because we deliver -' ® on every project. s ~ ,~~ a ~ ~a ~ ~ ~ ~ ~ ~ o° ~' ~, ~~ ® rcl~w info@hankardinc.com ~ 19 Old Town Square, Suite 238 ~ Fort Collins, CO 80524 303-666-0617 Our Clients Engineering Firms Carter Burgess CH2M Hill Felsburg Holt & Ullevig J.F. Sato & Associates Kumar & Associates Miller & Associates Parsons Transportation Stone and Webster TranSystems Tumer Collie & Braden URS Corporation Washington Infrastructures Wilson & Company Developers Environmental Consulting Firms Air Sciences Ensight Technologies ERO Resources JBR Environmental Smith Environmental SRK Consulting Sugnet & Associates Water Consult Colorado Cities and Counties City of Colorado Springs City of Denver City of Greenwood Village City of Lakewood City of Littleton City of Thornton El Paso County Arapahoe County The Colorado Department of Transportation Al] six Regions Office of Environmental Services Carma Colorado Coughlin Associates Denver Wests/Mills Corporation Forrest Park/Stapleton Redevelopment Authority General Investment and Development J.D. Collins Lowery Redevelopment Authority Opus Northwest Pedersen Development Our Pr®jects I-70 Mountain Corridor PEIS Architects Odell Architects PEH Architects Denver Regional Transportation Ditrict SW Corridor 30th St. Station Private Industry UDOT and Utah Cities UDOT Regions 2 and 4 City of West Jordan City of Taylorsville Iron .County Colorado Milts Mall City Lights Ampitheater I-25 Through Colorado Springs Homeowners Groups Cherry Hils Various individuals Air Liquide America American Gypsum Associated Air Center Bowie Resources Centenial Paving Evergreen Resources Pepsi Center/City Lights Rio Tinto Southeast Corridor Constructors Tallyn's Reach Residential Development JILA Labs at CU T-REX Southwest Corridor Light Rail Centennial Pavilion Retail Center Green Ridge Glade Resevior Raton Basin Coalbed Methane Powers Boulevard SH 9 Frisco to Brekenridge I-70 Mountain Corridor PEIS H~~ ENVIRONMENTAL AC OUSiICS AND VIBRATION CONSULTING info@hankardinc.com 19 Old Town Square, Suite 238 Fort Collins, CO 80524 303-666-0617 ~'®~11~T ~~ ~1~II. ®ISE I'TI~A'I'I®I~ February 2004 W® T'ASI~~ fl. li~Yeasure Change in l~loise Levels Resulting From Increased Enforcement We understand that the Vail police department will be conducting a speed reduction campaign consisting of increased monitoring, as well as education for truckers. Certainly, it is the hope that this effort results in along-term"reduction of speed, thus increasing safety and decreasing noise levels. To determine the effectiveness of the campaign in reducing noise levels, measurements will be conducted before, during, and after the increased enforcement effort. In our experience, one week is the minimum length of time needed to determine a given noise condition. A greater length of time provides more statistically relevant data. We propose that noise levels be measured over the course of one month. During the first 1/3 of the month, police will execute normal enforcement practices, and the measured noise levels will constitute the baseline condition. During the second 1/3 of the month, the police department will conduct their increased enforcement efforts, and the measured levels will reflect the resulting decrease in speed. During the last 1/3 of the month, the police will revert to normal enforcement procedures, and the measured noise levels will provide some indication of the long-term effects of the program. We recommend that noise levels be measured in two areas. One near where police are conducting surveillance, and one "downstream' of this position. In addition to the noise measurements, we recommend that traffic tubes be placed on both eastbound and westbound I-70 in each noise measurement area to obtain concurrent traffic volume, speed, and truck percentage data. Without this information, the changes that are measured in noise levels cannot be necessarily attributed to the speed reductions (they may be the result of normal speed, volume, and truck mix fluctuations). Also, the speed data will be valuable in its own right. Finally, a meteorological monitoring station will be set up to record wind speed and direction, temperature, and relative humidity. The measured data will be reduced as follows. First, all noise level data measured during adverse weather conditions will be eliminated. Then, the noise level data will be normalized to eliminate the effect of changes in traffic volume and mix. Finally, the before, during, and after levels at both locations will be compared to determine the program's effect. The results will also be compared to the measured changes in speed. We will coordinate with the police department in this effort. We recommend akick=off © meeting to discuss the police department's proposed efforts, get their input on ~' enforcement locations, and visit the site to discuss details. The deliverable for this task will be a technical report. The report will provide an aerial photograph of the study area (~ showing the locations of measurements and police enforcement, all of the measurement data, a description of the data reduction procedures, and a summary of conclusions. iii !® TOWN OF VAIL NOISE MITIGATION February 2004 ~ 2. Measure Effectiveness Of Existing Wall and Berms As part of Hankard Environmental's work on an ongoing CDOT-sponsored research effort, we recently conducted detailed noise measurements and analysis at one of the berms along I-70 in Vail. We will incorporate this information into this study. Secondly, we will measure the effectiveness of the wall at the east end of Town. The most accurate ® method of determining this is to place two meters at a certain distance from I-70, one meter being located directly behind the wall and one being located well beyond one end f o the wall. This way, all variables except the presence of the wall are constant, particularly traffic parameters. We may need to adjust the method somewhat due to the complex terrain in the immediate vicinity of the wall, which introduces other variables. We will measure noise levels over the course of one day, taking measurements at approximately 3 locations behind the wall, as well as at a control location. We will reduce the data and report on the effectiveness of the wall. We will coordinate with the ® Town for access onto private property. The results of the measurements and analyses ® will be summarized u1 a technical report, complete with graphics showing the site and the measurement locations, measured levels, and a summary of conclusions. Also we , will conduct high-quality, level-controlled audio recordings and post processing. These recordings can be played back over a sound system to demonstrate the effect of the wall. 3. Conduct Temporary Noise Wall Demonstration The purpose of this effort will be to demonstrate how much noise reduction a wall will achieve given the complex terrain in Vail, The first task will be to conduct akick-off ® meeting with all interested parties to discuss potential locations for the project. The location will be determined after consideration and investigation into the following: h areas wit highest noise levels, highway safety, constructability and cost, logistics, and the ability of the site to demonstrate the effectiveness of a wall in varying terrain. The length of the wall will be dependent on the noise reduction desired at the furthest location from the wall. The wall will consist of either ~50 foot-long truck trailers parked end to end (with all gaps sealed), L-panels (aka Vaughn Walls), lightweight panels fixed atop standard jersey barriers, or equivalent. After an initial meeting and field tour, the ® team will investigate the issues associated with each alternative the project deems ® feasible. A second meeting and round of investigations will take place once one alternative has been selected. We will then work with other parties to facilitate the effort, including: ^ Interfacing with and helping to secure permits from CDOT (temporary easements, safety plans, etc.) ^ Facilitating with the CMC'A ^ Conducting any required structural calculations (e.g. wind loading) ^ Conducting a before and after. noise and audio measurements at approximately 4 locations to determine the effectiveness of the demonstration -7- ~ ~®~11~T ®]F ~~I]L ~IS~ I~/II'I'IGA'TI®1~T February 2004 4. Evaluate Available 1~Toise Mitigation Measuges There are three ways to mitigate any noise problem: reduce the noise level of the source , provide a barrier to noise propagation, and/or insulate the receptor. Source control items that will be investigated as part of this project include: ® ® ^ Vehicle Emissions. Mufflers, emission levels, regulated on a Federal level -see . Item 6. ^ Pavement Type. This is an important issue across the country and abroad that is undergoing research and debate. The issues at hand are a) How much noise reduction is provided?, b) Does the noise reduction last for years or dissipate with time as the pavement ages?, c} What is the cost of the specialized pavements?, and d) Will the pavement physically stand the test of time? Hankard Environmental has been researching and conducting tests on this issue ® for years, and will summarize the status of ongoing research with regard to noise reduction and its longevity: Yeh and Associates will summarize the cost and durability issues. Our findings will be provided in a summary report with references. ® ~ Barrier issues to be investigated include: ^ Walls. We will investigate the various wall types and aesthetics that would be appropriate for Vail, and investigate possible locations for the demonstration ® project. After initial investigations and consultations, we will provide pictures and renderings of three promising walls, and a list of pro's and cori s for possible ® sites (constructability issues, noise issues, etc.). We will then facilitate a meeting ® to discuss the alternatives, choose a preferred alternative and location. Finally, ~ we will provide conceptual design drawings and a cost estimate for the chosen alternative ® ^ Berms. We understand that Vail has exhausted all berming opportunities and ® we will not address this further. ^ Cut and Cover. This is the acoustically superior mitigation measure, with its attended costs and other ramifications. We would be pleased to investigate this ® issue for Vail, but that is not included in this proposal. Insulation issues to be investigated include: ® ^ Building codes. We will review the sound isolation requirements for buildings in Vail, and provide recommendations as to their sufficiency for construction of ~ residential dwellings adjacent to I-70. ® -8- TOWN OF VAIL NOISE MITIGATION February 2004 5. Prepare Proposal For Funding of Mitigation Demonstration Project A meeting will be held to select one of the three candidates for submittal to the Colorado Congressional Delegation (CCD). Based on this selection, the team will prepare a proposal for submittal to the CCD and Federal Highway Administration (FHWA). , Members of our team are experienced in preparing requests for Federal discretionary funding. The proposal will include sufficient detail to respond to FHWA requirements on the submittal of requests for demonstration projects. In concert with the TOV, coordination with FHWA Colorado Division staff will also be accomplished to secure the FHWA Division s support of the request for discretionary funding. Coordination with CDOT Region 3/Headquarters staff may be necessary to conform the proposal to allow inclusion in a larger CDOT discretionary request package, if that is the case. It is also possible that coordination between the TOV and the Colorado Transportation Commission may be necessary to support the request. At this time man-hours are not included for this assistance, but members of our team can be made available on an as- directedbasis to assist TOV. 6. Provide Recommendations For Increasing Effectiveness of Town Noise Ordinances We will review the Town's current noise ordinances pertaining to vehicular noise and provide recommendations as to the practicality and effectiveness for achieving additional noise reduction. 7. Presentation of Results Our team will facilitate one public meeting in Vail at the conclusion of all measurements, analyses, and investigations to present the results of the study. Graphics and other presentation material will be provided. Also, an audio demonstration will be given where the noise reduction provided by existing and proposed mitigation will be simulated over a sound system. -9- ~_ ~ , ., Saar~annary of Oovenar~ts that are being considered at the ~flarch 16t" Vail T'ows~ Council and Vaii Reinvestment Authority il~eeting 1. Resolution 13: Resolution to rerxeove covenants on Forest Place Subdivision Physical Description; Lots 1-4 and Tract X, Forest Place Subdivision located on Forest Rd Current Covenants4 As part of the Protective covenant of Vail/Lionshead, First Filing there is the following protective covenanfi: This site is subject of record to certain recorded covenants at (Book 221, Page 498), which; among other things the fallowing "use restrictions": "1.2 The Subject Land shall be used, held and maintained in good order and condition by the Town of Vail (subject to existing or recorded easements and rights of way) for use at all times as a vacant and undisturbed grazing area in its natural condition. No structure, building , or improvement of any-kind or character whether temporary or permanent, may be erected or maintained thereon." See Attachrne~t 1 Proposed Change: The above mentioned covenant would prevent the development of the approved 4 single family lots and the new skier bridge. The remedy for this issue would be to delete the entirety of the above mentioned covenants as it applies to the subject land owned by Vail Resorts. This can be done with the approval of the Town of Vail. 2A Resolution 14: Establishing certain protective covenants on unplatted 'Town owned land at 601 Forest Road Physical Description: Portion of 6Q1 Forest Rd, Unplafited land owned by fibs Touvn of Vail south of Gore Greek, east of the Gondola lift. The site is predominantly wetlands and is zoned Natural Area Preservation. Currenfi Covenants: On December 21St, 1999 fibs Town of Vail received 6.3 acres from the Vail Corporation located on a portion of 601 Forest Road through a quit claim deed. In Exhibit B, Section 11.(a) of the deed certain limitations where placed on the land that would allow a variety of uses "The premises are restricted to the following uses: open space, public pedestrian access including sidewalk, boardwalks, bridges, landscaping, recreation activities...." The original covenants prior to the 1999 conveyance to the Town required that the site remain as undisturbed open space (same as attachment 1 noted above). With this deed the restrictive uses of the site were changed to allow a variety of paths, trails, and recreational uses (See Attachmen# 2)~ Proposed Change The above mentioned change by Vail Resorts Inc (doing business as the Vail Corporation) ~Nith the Town's acceptance of the deed has been a concern for adjacent property owners. In cooperation with adjacent property owners, represented by Art ,~ Abplanalp, a revised set of restrictive covenants has been developed (See Attachment 3). The affect of this change would be to continue to allow pedestrian access and including "graded but other wise unimproved walking paths." However it would prevent board walks and paved trails on the site. It essentially creates a similar set of protective covenants prior to when the ski company conveyed the land to the Town in 1999. This action can be taken the approval of Resolution 14 that would authorize the Town manager to execute attachrrtent 3. 3, VRA Resolution 3: Resolution to condeaxan Lot P-3 & J, flock 5-,~-, Vail Village I~ifth Filing and remove certain protective covenants. Physical pescription; This property is owned by Vail Resorts is located directly north of the Christiania Hotel. It currently is a surface parking lot. Current Covenants: This property is subject to Vail Village First Filing Covenant (174/179)) and Vail Village Fifth Filing Covenants (187/353): These covenants do not allow a stand alone structured parking lot. The covenants for Vai! Village First Filing allows that Lot J can be used for apartments, retail shops, service shops, restaurants and tea rooms, hotels, lodges, professional offices and medical clinics. The covenants for Vail Village Fifth Filing allow that Lot P,3 can be used for parking and associated uses, They also require architectural review (Section 1) of new structures from a board that does not exist and have other defunct or inappropriate provisions that do not apply today. Proposed Change: A change to Section 2.3 of the Vail Village Fifth Filing Govenants would be made to specifically allow a stand alone parking structure on fihe site and to allow a park and the "chute road." Qther changes that would need to occur to the use restriction in Vail Village 1S' Filing include: Section 2.3, 2.5 and Vail Village 5~' Filing in section 2.2 and 2.3. Resolution 3, if approved by the Vail Reinvestment Authority, would direct legal counsel to begin to take the necessary steps to condemn this land, remove only the covenants that impede redevelopment. Staff intends to bring a specific agreement back to the Town Council on Apri! Eat", 2004 that would review the specific process for condemning the land and removing the covenants on the land. Attachment 1: Covenants on Vail Lionshead First Filing -Forest Place Subdivision Attachment 2: Deed for 1999 conveyance of wetland parcel to the Town'of Vail Attachment 3: Proposed changes to covenants on wetlands parcel Attachment 4: Existing covenants on P3 ~ J y: ~~ ,~ ~, ;. -;; - . Est:-- ~ -i ~-r ,~ ~~0 ,, '~+. '. ~~ ~1' ~~ E1E30 ~E3~ BE30 t ~flZAF'I' ~Tai1 C®nference Center ~us~nes~ Plan Submitted to: Rod Slifer Conference Center Oversight Committee GO Town of Vail Department of Community Development 75 South Frontage Road Vail, CO 81657 Prepared by: HV5 Convention, Sports & Entertainment Facilities Consulting A Division of HVS International 445 West Erie, Suite 1-A Chicago, IL 60610 (312) 587-9900 Phone (312) 587-9908 Fax Web Site: www.hvsinternational.com March 16, 2004 Table of Contents Transmittal Letter Executive Summary 1. Introduction 2. Market Overview 3. Convention /Meeting Industry Trends 4. Lodging Analysis 5. Peer Resort Market and Facility Analysis 6. Event Planner Input 7. Facility Recommendations and Concept Plan 8. Demand Projections 9. Financing Operating Projections 10. Economic Impact Analysis 11. Financing Analysis 12. Statement of Assumptions and Limiting Conditions 13. Certification Appendix A CONVENTION -~~j - SPORTS & INTERNATIONAL ENTERTAINMENT March 16, 2004 Rod Slifer Conference Center Oversight Committee C/O Town of Vail Department of Community Development 75 South Frontage Road Vail, CO 81657 Re: DRAFT Town of Vail Conference Center Business Plan Dear Mr. Slifer: 4~i West Erie HVS herewith submits our revised DRAFT conference center business suite 1-A plan. We made every attempt to be responsive to the helpful and Chicago, IL 60610 detailed comments rovided b the Conference Center Oversight (312} 587-99Q0 1~ Y (312) 587-9908 FAX Committee. www.hvsinternational.com Our conclusions are based on our present knowledge of the meetings industry and the fieldwork and. research completed to date. It has been a great pleasure working with you and the City's Conference Center Oversight Committee. The considerable efforts of you and your fellow Committee members have been instrumental in the efficient and effective development of this analysis. New York DRAFT San Francisco Botzider Denier Paul Sajovec Miami Dallas Senior Vice President Chicago HVS Convention, Sports & Rock«lle, MD Entertainment Facilities Consulting 4vestmi, CT A Division of HVS International Phoetux Vancouver Toronto London Madrid t~1ew Delhi Singapore Hong Kong Sydney Sao Paulo Buenos ,Aires HVS Conference, Sports ff Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 1 Executove ~umm~ry Summary of Key HVS assisted the Town of Vail's appointed Conference Center Advisory Findings Committee (Committee) in developing a recommendation for a new conference center in the Town of Vail. For a complete understanding of the recommendations and estimates and the supporting analysis the reader should refer to the full report. Table 1 shows a summary of key data on the proposed project. Table 1 Summary of Key Project Data Facility Program Main Ballroom 25,000 Square Feet Breakout Meeting Space 20,000 Square Feet Gross Building Area 100,000 Square Feet Estimated Demand at Stabilization (2011) Number of Events 244 Attendance 75,600 New Room Nights 69,425 Estimated Financial Operations at Stabilization (2011) Revenue $5,035,644 Expenses $5,778,937 Net Income (Loss) ($743,293) Estimated Economic Impact at Stabil ization (2011) Total Spending $33,131,009 Jobs 329 Fscal Impact $1,416,386 Financing Assumptions Estimated Construction Cost $42,501,024 Annual Debt Service Payments $2,600,000 Date of Debt Issuance December 2004 Repayment Period 30 Years Ta Exempt Interest Rate 4.70% Source: HVS HVS Con erence, S orts £~ Entertainment DRAFT Vail Con erence Center Business Plan Executive Summa 2 Peoject d~isto~b The need for a new conference center in Vail has been under consideration for some time. Prior studies and analysis have identified the need for a conference center with anywhere from a 20,000 to 40,000 square foot main ballroom. Despite these findings, Vail has continued to lack a conference facility that can accommodate groups in excess of 500 attendees. In November 2002 voters in the Town of Vail passed a public referendum in favor of developing a new conference center with proceeds from 'an additional 1.5 percent lodging tax and a 0.5 percent sales tax. The Town appointed a Committee to determine the financial feasibility of developing the facility with the, available revenues and the appropriate facility program. In August 2003 the Town of Vail hired HVS Convention, Sports & Entertainment Facilities Consulting to develop a business plan for a conference center. This analysis is designed to determine the feasibility of such a development and to measure its potential economic impact in the community. Recommended Ifacisit~ This report recommends that the Town of Vail pursue the development of a ~eo9ram new conference center with a 25,000 squaze foot main ballroom /exhibit space and 25,000 square feet of breakout meeting space. The facility should feature an overall level of quality representative of Vail's reputation as a world-class resort destination. Design features should enhance event attendees' sense of being in a remarkable mountain resort. Table 2 shows the recommended program. HVS Conference, Sports fj Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 3 Table 2 Recommended Facilit)- Program Area Size Square Feet Banquet Theater Capacity Reception Classroom U-Shape Main Ballroom /Exhibit Space 25,000 2,070 2,780 2,630 1,710 670 Ballroom A 8,400 690 930 880 580 220 Ballroom B 4,100 340 460 430 280 110 Ballroom C 8,400 690 930 880 580 220 Ballroom D 4,100 340 460 430 280 110 Mountain Terrace 5,000 410 560 530 -- -- Meeting Rooms 20,000 1,650 2,220 2,110 1,370 530 Block 1 /Junior Ballroom 10,000 830 1,110 1,050 680 270 Junior A 2,500 210 280 260 170 70 Junior B 2,500 210 280 260 170 70 Junior C 2,500 210 280 260 170 70 Junior D 2,500 210 280 260 170 70 Block 2 6,000 500 670 630 410 160 Room 2-A 3,000 250 330 320 210 80 Room 2-B 1,500 120 170 160 100 40 Room 2-C 1,500 120 170 160 100 40 Block 3 4,000 330 440 420 270 110 Room 3-A 1,000 80 110 110 70 30 Room 3-B 1,000 80 110 110 70 30 Room 3-C 1,000 80 110 110 70 30 Room 3-D 500 40 60 50 30 10 Boardroom 500 -- -- -- 20 10 Total ~ 45,000 3,720 5,000 4,740 3,080 1,200 Lobby /Prefunction Space- Ballroom 10,000 Lobby /Prefunction Space- Meeting Rooms 10,000 ' Square leetexcludes terrace So urces: lJl4N &HVS The Committee asked HVS to analyze an alternative facility program with a main ballroom measuring 20,000 square feet and a total construction cost that could be adequately funded with annual debt service payments of $2.55 million. HVS analyzed this alternative scenario in detail. After reviewing the two options the Committee determined that the 25,000 square foot ballroom scenario was preferable due to its greater demand potential. The Committee also asked HVS to determine the effects of eliminating all events other than conferences at the recommended facility. A decision to implement a booking policy that restricted all but conferences from occurring at the facility would HVS Conference, Sports £a Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 4 more than double the estimated annual operating deficit. This analysis is included in an appendix. Si$e Bssues At the direction of the Committee, HVS and its architectural consultant LMN Architects assessed the capacity of two potential sites to accommodate the recommended facility program. The sites included the Charter Bus Lot adjacent to the Lionshead parking structure and the area above the existing Lionshead parking structure. LMN's analysis of the sites revealed that either could accommodate the recommended facility. The smaller Charter Bus Lot site would require the construction of a two-level conference center. The option that calls for building the facility above the parking structure could accommodate asingle-level facility. Asingle-level conference center generally is more efficient in terms of its special layout, but a properly designed two- level facility can achieve a high level of efficiency as weIl. In addition, building the facility over the parking structure would leave the Town more options for incorporating a proposed adjacent transit center. Construction consultants working for the Town estimated that the construction premium for building the facility above the parking structure would be approximately $3 million in hard construction cost. Due to concerns about the useful life of the existing Lionshead parking structure being less than the anticipated life of the conference center. to be built above, the Town directed HVS to proceed with the assumption that the facility would be built on the Charter Bus Lot site. However, the Town continues to evaluate potential solutions that could improve the feasibility of the option of building above the parking structure. ~xis$in~ conditions Vail has several hotels with conference center space, but. none with a dedicated ballroom space with more than 8,300 square feet. An analysis of six peer resort markets details the facility programs and operations of their conference centers. Table 3 shows the amount of function space in these conference centers and the number of lodging units in their market areas. HVS Conference, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 5 Table 3 Square Feet of Function Space by Type in Pcer Resort Conference Centers and Area Lodging Units acility Square Feet at Meeting Space Square Feet of Largest Single Space Largest Room Banquet Capacity in # of People " Maximum Numher of Meeting Roams Lodging Units in Market Area Estimated Annual Operating Profit (Loss) Banff Centre' 52,814 5,879 486 53 4,364 ($639,465) Keystone Conference Center 44,180 19,800 ' 1,636 25 1,300 ($1,695,565) Monterey Conference Center 40,976 19,600 1,620 15 4,500 ($1,500,000) Snowmass Conference Center 18,399 10,823 894 10 1,300 N/A Telluride Conference Center 10,961 6,069 502 9 1,362 $600,000) Whistler Conference Centre 34,403 16,500 1,364 19 5,200 WA Peer Facility Average 33,622 13,112 1,084 22 3,004 ($1,108,757) 8an(I Centre financial operating revenue inGudes $d9 million in grants Sources: Major Exhibit Hall Directory 2002 and respective hcilities Input from Event HVS surveyed planners of national and Sfate events to learn about their Planners perceptions of Vail's attractiveness as a location for.their events and to gauge their overall level of interest in bringing events to a new conference center in Vail. HVS received a total of over 50 completed responses to an Internet survey, conducted three focus groups, and interviewed several other meeting professionals. One of the key survey questions asked event planners of national and regional events to rank the relative attractiveness of the set of peer conference centers and the proposed facility in Vail; as shown in Figure 1. HVS Conference, Sports £> Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 6 Figure U Ratings of Overall Attractiveness of Resorts as Event Locations ,, Vai, CO-Conference Center ~, - 3.4 IMoP~) Ltontoney CA-C~~"® ._ 3.3 Center Aspen, CO - Snowmass 3. Conference Center ~ ~ I Keysbne, CO - Resort b - 3.0 Conference Center - - Whistler, BC-Cmderen~ ~ 3.0 Center Banff, AB-Barti(Cemre ~ 2.9 1 2 3 4 5 Very Unattractive Average Very AfVaUive Source: HVS Survey These event planners ranked the proposed Vail facility ahead of any of the other peers as a potential location for their events. In another key question, HVS asked national event planners to indicate how frequently they believed they would utilize the planned Vail conference center. Two-thirds of the event planners indicated that they expected to utilize the conference center. Approximately 43 percent of the respondents indicated they planned on using the facility at least once every five years. HVS also surveyed State of Colorado event planners and asked them to rate the overall attractiveness of a set of existing primary convention facilities, conference centers, and hotels with meeting space that frequently host State events. This survey was entirely separate from the national .survey and the respondents and results are distinct and do not overlap with or represent a subset of the national survey, HVS selected the list of facilities based upon an assessment of the one or two facilities in each market that would compete most directly with a conference center in downtown Vail for State events. Figure 2 shows the average ratings of these selected facilities. FNS Conference, Sparts £~ Entertainment DRAFT Vaii Conference Center Business Plan Executive Summary 7 Figure 2 Relative Attractiveness of Selected Event Locations Among State Event Planners r Vail ~ --- 4.43 3.50 Denver { ~ - Colorado Springs i~ ~ -I~~ 3.21 Aspen ' ~ 321 Keystone I~_ Englewood ~~, ~~~-_~~- Telluride ~~-~ 2.36 i Grand Junction ~~----~~ 2.36 Fort Collins 229 Puebb ~ - - _ 2.07 Greeley !~ 2.00 Boulder !~ 1.92 1 2 3 4 5 Very Unaltradive Average Very Attractlve Source: HVS Survey Event planners rate Vail as easily the most attractive event destination. It is typical to see some bias in favor of the subject location in such surveys, but the disparity between the rating for Vail and the other locations in the state is noteworthy. The disparity between Vail and the other resort locations on the list is indicative of significant demand potential associated with events that typically utilize resort locations. Demand Projections Table 4 shows the projected number of events and attendees by type of event between 2007 and 2011, the point at which the analysis estimates that the facility would reach a stabilized point of demand. FiVS Conference, Sports & Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 8 Table 4 Projected Events and Attendance 2007 - 201 ~ Event Type 2007 2008 2009 2010 2011 Plumber at Events Corporate Conferences 15 19 21 22 23 Association Conferences 7 15 22 25 26 Banquets 25 30 38 42 45 Meetings 90 100 107 109 110 Entertainment 10 13 14 15 15 Other 20 22 23 24 25 Total 167 199 225 237 244 Average Attendance Corporate Conferences 433 473 481 485 507 Association Conferences 507 498 503 511 517 Banquets 400 400 400 400 400 Meetings 100 110 115 120 125 Entertainment 500 500 500 500 500 Other 450 450 450 450 450 Total Average 258 281 293 302 310 Total Attendance Corporate Conferences 6,500 8,995 10,095 10,675 11,650 Association Conferences 3,550 7,465 11,070 12,765 13,450 Banquets 10,000 12,000 15,200 16,800 18,000 Meetings 9,000 11,000 12,305 13,080 13,750 Entertainment 5,000 6,500 7,000 7,500 7,500 Other 9,000 9,900 10,350 10,800 11,250 Total 43,050 55,860 66,020 71,620 75,600 Source: HVS The projection estimates that total attendance would increase from 43,050 in 2007 to 75,600 in 2011. Table 5 shows the estimated percentage of room nights the conference center would attract that would be new to the community and the resultant number of new room nights by type of event. FiVS Conference, Sports £> Enterfainment DRAFT Vail Conference Center Business Plan Executive Summary 9 Table 5 New Room Night Projections Event Type 2007 2008 2009 2010 2011 "Percent New to the Market Corporate Conferences 80% 83% 84% 85% 85% Association Conferences 85% 87% 88% 90% 909:° Banquets 50% 55% 60% 65% 70% Meetings 15% 189'° 20% 20% 20% Entertainment 0% 0% 0% 0°,6 0% Other 15% 159'° 15% 15% 15% New Room Nights Corporate Conferences 15,680 23,406 27,216 28,985 31,875 Association Conferences 8,500 18,357 28,160 33,120 34,740 Banquets 950 1,265 1,740 2,080 2,380 Meetings 165 252 300 320 340 Entertainment - - - - - Other 75 75 75 75 90 Total 25,370 43,355 57,491 64,580 69,425 Source: FNS The projection estimates that the proposed conference center would attract close to 70,000 new room nights to the . market annually by demand stabilization in 2011. Table 6 shows the projected operating revenues and expenses for the recommended facility. Table 6 Projected Conference Center Revenue and Expenses Revenue/Expenses 2007 2008 2009 2010 2011 Revenue $2,496,333 $3,394,855 $4,169,501 $4,652,975 $5,035,644 Expenses $3,610,253 $4,334,901 $4,997,440 $5,427,391 $5,778,937 Net Income ($1,113,920) ($940,046) ($827,939) ($774,416) ($743,293) Source: FNS The financial operating projections estimate that the facility would operate at a deficit of between $1.1 million in the first year and $743,293 at stabilization in 2011. Operating deficits in this range are typical for conference center facilities of this size. After 2011 inflation would cause the annual operating HVS Conference, Sports £a Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 10 deficit to increase slightly as the expenses increase at a greater increment due to the fact that they are greater than revenues. (`conomic Bmpact The ability of conference centers to attract new events and attendees from out of town who. spend considerable amount of money in the local economy is the primary rationale for municipalities to invest in these facilities. HVS estimates the amount of new spending that the proposed conference center would attract to the Town. The methodology I-iVS employs is designed to measure only the new spending that the proposed facilities would attract to the Town and exclude any transfer spending. Using average spending data from the International _ Association of Conference & Visitor Bureaus and several local sources, HVS estimates the amount of new direct spending the proposed facilities would generate. HVS then uses aninput /output model to estimate the indirect and induced spending the Towri s economy would capture and the number of jobs this spending would support. Table 7 shows the estimated new spending and the number of jobs the events attracted to the conference center and . headquarters hotel would generate in the Town economy. fable 7 Tatal S ending Inflated Dollars in INillions & Employment Impact 2007 2008 2009 2010 2011 Type oflmpact Spending Jobs Spending Johs Spending Jobs Spending Johs Spending Jobs Directlmpact $8.7 102 $15.1 170 $20.7 226 $23.7 252 $26.2 268 .Indirect' 1.0 10 1.8 16 2.5 21 2.8 24 3.1 26 Induced' 1.3 14 2.2 22 3.0 29 3.5 33 3.8 35 Total $11.0 125 $19.0 207 $26.2 277 $30.0 308 $33.1 329 ' Total irMustry output Source: IIVS The economic impact analysis estimates that the conference center would attract new events and attendees that would generate approximately $33.1 million in new direct, indirect, and induced spending into the Town economy and would support 329 jobs. Table 8 shows the estimated fiscal tax revenue that the additional events and attendees would generate for the Town. HVS Conference, Sports £a Entertainment DRAFT Vail Conference Center Business Plan Executive Summary I1 Table 8 Summary of New Fiscal Tax Revenue Tax 2007 Tax Base Estimated Revenue 2008 Tax Base Estimated Revenue Local Sales 58,130,138 $365,856 $13,589,590 $611,532 Hotel Lodging 3,777,237 109,540 6,654,038 192,967 Total $475,396 $804,499 2010 2011 Tax 1"ax Base Estimated Tax Base Estimated Revenue Revenue 2009 Tax Base Estimated Revenue $18,717,020 $842,266 9,175,759 266,097 $1,108,363 Local Sales $21,458,855 $965,648 $23,941,871 $1,077,384 Hotel Lodging 10,567,174 306,448 11,689,710 339,002 Total $1,272.097 $1,416,386 Source: HVS By the time demand for the proposed conference center stabilizes in 2011, the analysis estimates that the new spending would generate a little over $1.4 million in fiscal tax revenue annually for the Town. Of this new revenue, approximately $295,055 would be allocated to the conference center from the 0.5 percent sales t:ax and 1.5 percent lodging tax and $163,656 would be allocated to the Vail Local Marketing District, leaving approximately $957,675 in Town of Vail tax revenue that isri t directly allocated to the conference center or the marketing district. Financing The town of Vail hired an architectural consulting firm to develop a cost estimate of the recommended facility, results of which are shown in Table 9. FfVS Conference, Sports F> Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 12 gable 9 Cost Estimate of the Recommended Conference Center Conference Center- 125 Parking Spaces- 100,000 SF 40,965 SF Total Cost Cost / SF Total Cost Cost / SF Total Project Cost Item Hard Costs Construction Sitework Total Hard Costs Soft Costs Design, Engineering, and Materials Testing Fees FF&E, Teledata, POS, qN, Parking Equip, Etc. Permits, Tap Fees, and Other Govt. Fees Contingency Legal, Project Management, and Insurance Total Soft Costs Total Development Cost Source: Ar $27,371,452 $274 $2,504,111 $61 $29,875,563 $3,868,831 $39 in above -- $3,868,831 $31,240,283 $312 $2,504,111 $61 $33,744,394 $2,467,982 $25 $87,644 $2 $2,555,626 $1,920,000 $19 $275,000 $7 $2,195,000 $350,000 $4 $50,000 $1 $400,000 $1,798,913 $18 $145,838 $4 $1,944,751 $1,661,253 $17 I n Conf. CnV. - $1,661,253 $8,198,148 $82 $558,482 $14 $8,756,630 $39,438,431 $394 $3,062,593 $75 $42,501,024 chitectural ResourceConsuttants 1.1VS developed preliminary estimates of the amount of revenue that will be available from the dedicated taxes, as shown in Table 10. FfVS Conference, Sports F~ Entertainment DRfiFT Vail Conference Center Business Plan Executive Summary 13 Table 10 Estimated Revenues Available for Debt Service Sales Tax Revenue Lodging Tax Revenue Total Available Year Available for Available for Total Availahle Tax Annual % Estimated Operating Profit Revenue for Conlerence Center Conference Center Revenue (5000) Change Oeht Service (5000) (5000) (Lass) (1000) 2003 1,813 1,531 3,343 - - 3,343 2004 1,763 1,512 3,274 -2.1% - 3,274 2005 1,700 1,497 3,197 -2.4% -- 3,197 2006 1,789 1,542 3,331 4.2% - 3,331 2007 1,939 1,619 3,557 6.8% (1,114) 2,443 20013 2,002 1,679 3,681 ~ 3.5% (940) 2,741 2009 2,052 1,747 3,798 3.2% (828) 2,970 2010 2,102 1,818 3,920 3.2% (774) 3,146 2011 2,153 1,895 4,047 3.2% (743) 3,304 2012 2,201 1,948 4,149 2.5% (166) 3,383 2013 2,250 2,002 4,253 2.5% (789) 3,464 2014 2,301 2,058 4,359 2.5% (812) 3,547 2015 2,353 2,116 4,469 2.5% (837) 3,632 2016 2,406 2,175 4,581 2.5% (862) 3,719 2017 2,460 2,236 4,696 2.5% (888) 3,008 2018 2,515 2,299 4,814 2.5% (914) 3,900 2019 2,572 2,363 4,935 2.5% (942) 3,993 2020 2,630 2,429 5,059 2.5% (970) 4,089 2021 2,689 2,497 5,186 2.5% (999) 4,187 2022 2,749 2,567 5,316 2.5% (1,029) 4,288 2023 2,811 2,639 5,450 2.5% (1,060) 4,390 2024 2,875 2,713 5,587 2.5% (1,092) 4,496 2025 2,939 2,789 5,728 2.5% (1,124) 4,604 2026 3,005 2,867 5,872 2.5% (1,158) 4,714 2027 3,073 2,947 6,020 2.5% (1,193) 4,627 CAGR 2.5% 1.5% Source: F1V5 The investment banking firm of George K. Baum assisted HVS in defining the appropriate financing assumptions and calculated the financing capacity under the proposed financing plan. The Committee considered a variety of financing plans with varying assumptions regarding annual debt payments, total facility cost, cash funded versus insured reserves, and other variables before selecting a preferred finance plan. Table 11 shows the funding capacity and the source and uses of funds that result from this financing approach. HVS Conference, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 14 Table 1~ Sources ~ Uses of Punds Sources Proceeds of Debt $42,450,000 Premium (Discount) 1,OS6,882 Cash contribution from tax revenues prior to debt issuance 501,024 Total $44,037,906 Uses Project Fund $42,501,024 Underwriter's Discount 424,500 Cost of Issuance 424,500 Insurance Premium 600,249 Debt Service Reserve Fund Insurance 87,057 Rounding 576 Total $44,037,906 Source: George K Baum & Company This preliminary assessment of financing capacity indicates that the dedicated revenues are sufficient to support debt payments on an approximate $42 million bond issue. Table 12 shows the estimated net debt service payments each yeaz, the coverage ratio, and the net fund balance. FNS Conference, Sports ff Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 15 Table 12 Vail Conference Center Available Revenue, Debt Service, Coverage Ratios, and Fund Balance Available Cash pnnual Annual Annual Capital Net Fund Revenue Funded Additional Funds Net Debt Debt Funda Annual Funds Available Main- tenants Other Fxpen- Yearly Net Cumulative Balance Assuming Year from Deht Available Service Service Available Operating Aeer Reserve ditures Cash Fiows Net Fund Annual Dedicated Service for Oebt Payments Coverage After Debt Loss Operating Contra- Balance Interest Taxes Payments' Service Servicfl Loss bution Growth 2003 3,343,447 - - - - 3,343,447 - 3,343,447 - - 3,343,447 3,343,447 3,343,447 2004 3,274,466 - - - - 3,274,466 - 3,274,466 - (210,Of)O)Z 3,064,466 6,407,913 6,465,086 2005 3,196,774 - 3,196,774 (2,597,988) 1,23 598,786 - 598,786 - (2,037;330)3 (1,438,543) 4,969,369 5,137,095 2006 3,330,929 - 3,330,929 (2,596,363) 1.28 734,566 - 734,566 - (500,938) 233,629 5,202,998 5,458,568 2007 3,557,418 300,000 3,857,418 (2,899,363) 1.33 958,055 (1,113,920) (155,665) (40,000) - (495,865) 4,707,133 5,056,045 2006 3,681,127 300,000 3,981,127 (2,896,863) 1.37 1,084,265 (940,046) 144,219 (70,000) - (225,781) 4,481,352 4,916,722 2009 3,798,346 300,000 4,098,346 (2,896,113) 1.42 1,202,234 (827,939) 374,295 (80,000) - (5,705) 4,475,647 4,995,093 2010 3,920,224 300,000 4,220,224 (2,898,144) 1.46 1,322,060 (774,416) 547,664 (100,000) - 147,664 4,623,311 5,228,173 2011 4,047,036 300,000 4,347,036 (2,896,356) 1.50 1,450,680 (743,293) 707,387 (135,000) - 272,387 4,895,697 5,589,961 2012 4,148,514 300,000 4,448,514 (2,895,575) 1.54 1,552,939 (765,592) 787,347 (220,000) - 267,347 5,163,045 5,952,897 2013 4,252,567 300,000 4,552,567 (2,901,888) 1.57 1,650,660 (788,560) 662,120 (250,000) - 312,120 5,475,165 6,366,811 2014 4,359,261 300,000 4,659,261 (2,598,288) 1.79 2,060,974 (812,216) 1,246,758 (275,000) - 673,758 6,148,922 7,149,441 2015 4,468,665 - 4,468,665 (2,599,888) 1.72 1,868,777 (836,583) 1,032,194 (300,000) - 732,194 6,681,116 8,003,891 2016 4,58D,846 - 4,580,846 (2,597,388) 1.76 1,983,459 (861,680) 1,121,779 (350,000) - 771,779 7,652,895 8,912,536 2017 4,695,878 - 4,695,878 (2,597,750) 1.81 2,098,128 (887,531) 1,210,597 (400,000) - 810,597 8,463,492 9,875,538 2018 4,813,833 - 4,813,833 (2,595,738) 1.85 2,218,095 (914,157) 1,303,939 (415,000) - 888,939 9,352,431 10,933,348 2019 4,934,786 - 4,934,786 (2,596,350) 1.90 2,338,436 (941,581) 1,396,855 (420,000) - 976,855 10,329,286 12,097,163 2020 5,058,815 - 5,058,815 (2,599,350) 1.95 2,459,465 (969,829) 1,489,636 (425,000) - 1,064,636 11,393,922 13,368,661 2021 5,185,998 - 5,185,998 (2,599,500) 1.99 2,586,498 (998,924) 1,587,574 (435,000) - 1,152,574 12,546,496 14,749,839 2022 5,316,417. - 5,316,417 (2,596,800) 2.05 2,719,617 (1,028,891) 1,690,725 (435,000) - 1,255,725 13,802,221 16,257,786 2023 5,450,154 - 5,450,154 (2,596,250) 2.10 2,853,904 (1,059,758) 1,794,146 (435,000) - 1,359,146 15,161,367 17,894,941 2024 5,587,297 - 5,587,297 (2,599,000) 2.15 2,980,297 (1,091,551) 1,896,746 (435,000) - 1,461,746 16,623,113 19,662,690 2025 5,727,931 - 5,727,931 (2,598,000) 2.20 3,129,931 (1,124,297) 2,005,633 (435,000) - 1,570,633 18,193,747 21,569,555 2026 5,872,147 - 5,872,147 (2,598,250) 2.26 3,27;!,897 (1,158,026) 2,115,871 (435,000) - 1,680,871 19,874,618 23,619,266 2027 6,020,038 - 6,020,038 (2,599,500) 2.32 3,420,538 (1,192,767) 2,227,771 (435,000) - 1,792,771 21,667,388 25,815,926 2028 6,171,698 - 6,171,698 (2,596,500) 2.38 3,575,198 (1,228,550} 2,346,647 (435,000) - 1,911,647 23,579,036 28,169,025 2029 6,327,223 - 6,327,223 (2,599,250) 2.43 3,727,973 (1,265,407) 2,462,567 (435,000) - 2,027,567 25,606,602 3D,678,282 2030 6,486,715 - 6,486,715 (2,597,250) 2.50 3,889,465 (1,303,369) 2,586,096 (435,000) - 2,151,D96 27,757,699 33,353,977 2031 6,650,275 - 6,650,275 (2,595,500) 2.56 4,054,775 (1,342,470) 2,712,305 (435,000) - 2,277,305 30,035,004 36,201,635 2032 6,818,008 - 6,818,008 (2,598,750) 2.62 4,215,258 (1,382,744) 2,836,514 (435,000) - 2,401,514 32,436,516 39,222,197 2033 6,990,022 - 6,990,022 (2,596,500) 2.69 4,393,522 (1,424,226) 2,969,296 (435,000) - 2,534,296 34,970,814 42,427,193 2034 7,166,427 - 7,166,427 (2,598,750) 2.76 4,567,677 (1,466,953) 3,100,724 (435,000) - 2,665,724 37,636,538 45,818,422 ' A portion o/ the lands accumulated prior to debt service issuance is used to augment debt service payments in years 2007 through 2014 `Project implementation costs of $210,000, including consulting lees and owner's representative costs, subtracted /rom fund balance in 2004 Cost of debt Issuance, underwriter's spread, insurance premiums and cash tovraNs construction cost of $2,037, 330 subtracted lrom land balance in 2005 Pre-opening expenses of $500, 938 subtracted /rom land balance in 2006 Source: HVS International Including both the annual debt service payments and the estimated operating deficit of the conference center, the tax revenues dedicated to this project are sufficient to finance its costs and still maintain a healthy fund balance to help insulate the Town from risk associated with higher-than- anticipated operating deficits. To help the Town evaluate the implications of increased operating deficits for the facility HVS performed a sensitivity HVS Conference, Sports 6 Entertainment DRAFT Vail Conference Center Business Pian Executive Summary 16 analysis on the effects of a series of increased operating deficits, as shown in Table 13. Table 13 isitivity Analysis on Size of i :eating Deficit as a Percent of Original Estimate Base Annual Net Fund Year Operating Balance Income w/Interest 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 (1,113,920) (940,046) (827,939) (774,416) (743,293) (765,592) (788,560) (812,216) (836,583) (861,680) (887,531) (914,157) (941,581) (969,829) (998,924) (1,028,891) (1,059,758) (1,091,551) (1,124,297) (1,158,026) (1,192,767) (1,228,550) 5,137, 5,458, 5,056, 4,916, 5,228,173 5,589,961 5,952,897 6,366,811 7,149,441 8,003,891 8,912,536 10,933,348 12,097,163 13,368,661 16,257,786 1.7,894,941 19,662,690 21,569,555 23,619,266 25,815,926 28,169,025 110% 125% 150% Annua! Net Fund Annual Net Fund Annual Net Fund Operating Operating Operating Income Balance Income Balance Income Balance „___, w/Interes4 „___, w/Interest „___, w/Interest (1,225,313) (1,034,050) (910,733) (851,857) (817,622) (842,151) (867,416) (893,438) (920,241) (947,848) (976,284) (1,005,572) (1,035,740) (1,066,812) (1,098,816) (1,131,781) (1,165,734) (1,200,706) (1,236,727) (1,273,829) (1,312,044) (1,351,905) 3,343, 6,465, 5,137, 5,458, 4,709,421 4,701,452 5,133,098 5,411,661 5,737,465 6,428,112 7,186,568 7,995,069 8,853,629 9,802,549 10,852,869 12,006,106 13,264,093 14,643,745 16,147,323 17,776,033 19,538,207 21,437,378 23,477,452 25,667,708 (1,392,401) (1,175,057) (1,034,924) (968,020) (929,116) (956,990) (985,699) (1,015,270) (1,045,729) (1,077,100) (1,109,413) (1,142,696) (1,176,977) (1,212,286) (1,248,655) (1,286,114) (1,324,698) (1,364,439) (1,405,372) (1,447,533) (1,490,959) (1,535,688) J,J'TJ,'YI/ 6,465,086 - 5,137,095 - 4,777,565 4,398,469 4,260,992 4,287,915 4,447,802 4,599,809 4,793,446 5,346,117 5,960,584 6,618,868 7,320,766 8,106,350 8,986,428 9,962,275 11.035.473 16,491,184 18,164,548 19,969,740 21,915,733 (1,670,881) (1,410,069) (1,241,909) (1,161,623) (1,114,940) (1,148,388) (1,182,839) (1,218,325) (1,254,874) (1,292,521) (1,331,296) (1,371,235) (1,412,372) (1,454,743) (1,498,386) (1,543,337) (1,589,637) (1,637,326) (1,686,446) (1,737,040) (1,789,151) (1,842,825) 3,343 6,465 5,137 5,458 3,880,21 3,347,658 3,305,643 3,246,721 3,220,080 3,542,792 3,917,277 4,325,201 4,765,994 5,279,353 5,875,694 6,555,889 7,321,107 8,187,578 9,156,853 10,229,405 11,412,813 12,709,830 14,123,555 15,662.440 Source: FNS 197% Annual Net Fund Operating Balance Income w/Interest (2,194,423) (1,851,890) (1,631,040) (1,525,599) (1,464,287) (1,508,216) (1,553,462) (1,600,066) (1,648,068) (1,697,510) (1,748,436) (1,800,889) (1,854,915) (1,910,563) (1,967,880) (2,026,916) (2,087,724) (2,150,355) (2,214,866) (2,281,312) (2,349,751) (2,420,244) 3,343,447 6,465,086 5,137,095 5,458,568 3,975,542 2,905,898 2,146,783 1,579,974 1,158,384 702,915 262,152 152,543 75,860 13,106 -36,978 -35,403 27,512 151,885 338,100 601,582 943,050 1,362,118 1,865,475 2,454,960 3,132,726 3,906,249 This sensitivity analysis shows that the annual operating deficit would need to be 197 percent of the current estimates in each year for the net fund balance to dip below zero at any point during the debt repayment period. implications of au There are some indications that the cost associated with adding the necessary 9ncrease in tits parking spaces to the adjacent parking deck associated with the conference Construction, Cost center could increase by $1.5 to $2.0 million over the current estimate. There are several options for dealing with such an increase in the construction cost. FNS Conference, Sports fa Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 17 The first option to consider would be to take the additional costs out of the fund balance. Since the fund balance with interest is over 4.5 times greater than the projected annual operating loss in 2007 and that ratio rapidly increases thereafter, the Town could still maintain a sufficient fund balance to cover any unintended significant increases in annual operating losses if the fund balance decreased by $1.5 to $2.0 million. If the fund balance decreases by $2.0 million the ratio of the _ fund balance to the estimated annual operating deficit is still 2.7 to 1 in 2007. Another option would be to restructure the debt service payments to make them greater in later years when there is more tax revenue available to pay off the debt. Similar to taking the. additional construction funds from the fund balance, this option is attractive because it does not alter the physical program or demand potential of the facility. However, restructuring the debt service payments so that they are lower in the early years and greater in the later years would increase the overall financing cost of the project. The third and least attractive option would be to reduce the construction cost of the conference center itself by reducing the size of the facility. If this option proves necessary as a last resort for dealing with increased construction costs, the least damaging approach to the demand potential of the facility would be to reduce the breakout meeting space. A small reduction in the amount of breakout meeting space of 3,000 square feet or less would have the least detrimental effect on the demand potential of the facility. If a greater reduction of facility program space were necessary, than the main ballroom area would likely need to be reduced so as to preserve an adequate ratio of fixed-wall breakout rooms to total function space. Timing of the Issuance The Committee considered the merits of waiting an additional year and of Debt issuing debt in December of 2005 rather than December 2004. The advantage of waiting an additional year would be that the Town would collect an additional year's worth of tax revenues in that time and this money would augment the initial fund balance for the project. However, if interest rates rise during 2005 the additional borrowing costs may offset the advantage of beginning with a higher fund balance. Another consideration is the additional year of cost escalation u1 the construction cost for the facility. Finally, waiting another year would delay the opening of the facility and the economic benefits it is projected to generate for the Towri s economy. In consultation with the Towri s financial advisor, the Committee determined that the interest rate risk and construction cost increase associated with FNS Conference, Sports f~ Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 18 waiting another year was not worth the benefit from another year s worth of tax revenue collections. If tax-exempt rates increased by 0.75 percent in 2005, a scenario considered possible by the Towri s financial advisor, the capacity of the Towri s debt issuance would decrease by approximately $2.9 million. This decrease in debt capacity would largely offset any gains from an additional year of tax collections. HVS Convention, Sports & Entertainment DRAFT Vail Conference Center Business Pian Introduction 1-1 1. Introduction The need fox a conference center in Vail that can accommodate events larger than any existing hotel with functions space has been under consideration for some time. )n November 2002 voters in the Town of Vail passed a public .referendum in favor of developing a new conference center with proceeds from an additional 1.5 percent lodging tax and a 0.5 percent sales tax. The Town appointed a Conference Center Advisory Committee to determine the financial feasibility of developing the facility with the available revenues and the appropriate facility program. This Committee issued a request for proposals for a firm. to assist the Committee in developing a business plan for the proposed facility. The Committee selected HVS Convention, Sports & Entertainment Facilities Consulting (HVS) to conduct a detailed analysis of the financial feasibility of the conference center. As part of this work HVS: ^ Developed a facility program recommendation, ^ Projected the demand and financial operations of the facility, ^ Conducted an analysis of the ability of the dedicated revenue to support the estimated development cost of the facility, and ^ Estimated the economic and fiscal impact of the facility. This report details the findings and conclusions of this work. Prioe Studies The consulting team of Robert S. Benton & Associates and Hire & Associates completed a market study prepared for the Vail Valley Performance and Conference Center Committee in August of 1993. This study recommended the development of a 94,700 square foot facility with a 950 fixed-seat theater and a 14,600 square foot ballroom. The Town of Vail and the Vail Recreation District retained Economics Research Associates to evaluate the feasibility of a multi-purpose conference center. The March 2000 report looked at two facility alternatives, `vhich both included a conference learning center with a HVS Convention, Syorts F~ Entertainment DRAFT Vail Conference Center Business Plan Introduction 1-2 20,000 square foot ballroom, an additional ice rink facility, and a family recreation center. Summary of Anal~tiCeB HVS analyzed the financial feasibility and demand potential for a new yasks conference center in Vail. The analysis provides a basis for a recommended physical program and for projecting the events, attendance, room nights, and overall economic impact that the new faality would generate: HVS based its recommendations and projections on the following analysis: A Summary of Vail's destination characteristics in terms. of its overall tourism infrastructure destination appeal, An industry overview that summarizes relevant trends in the market for events and assesses their implications for facility development in Vail, Comparable resort market and facility analysis that evaluates Vail as an event location relative to a set of other comparable and competing markets, Review of existing hotel-based conference facilities in Vail, Surveys of state, regional, and national event planners providing valuable insight into the perceived attractiveness of. Vail as a conference destination. Focus groups with national and.state event planners. Analysis of lost business data maintained by the Vail Valley Chamber & Tourism Bureau and interviews with selected event planners t-who have considered bringing events to Vail but have been unable to because of the lack of a true conference center facility. Interviews with hospitality managers and professionals in Vail with expertise in the market for group events. Each of these analytical tasks is designed to help the Committee identify and approve an appropriate facility program for a new conference center and assess the business case for public involvement in the development of such a facility. HVS assisted the Committee in this process and estimated the level of potential demand for the facility, recommended any necessary complementary visitor infrastructure improvements, developed a facility recommendation, estimated the financial operations of the facility, and HVS Convention, Sports f> Entertainment DRAFT Vail Conference Center Business Plan Introduction 1-3 estimated the economic and fiscal impact the facility would have on the community. The time, efforts, and direction of the Committee were instrumental in the development of this business plan. HVS Convention, Sports f> Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-1 ® Market Overview Characteristics of the local area surrounding a new conference center in Vail will influence the ability of the facility to attract attendees to its events, particularly in regard to those events that attract attendees from out of town. This section focuses on some elements particularly important to the attractiveness of Vail as an event destination. I~opulation The Town of Vail, Colorado is located in Eagle County. Eagle County's population increased at a high rate between 1990 and 2000, reaching an estimated 42,027 in 2000. Table 2-1 shows estimated historical and forecasted future population for the State of Colorado, major metropolitan areas in the State and Eagle and Summit Counties. Tahle 2-~ Population Estimates and Forecasts Bor the State of Colorado and Colorado Metropolitan Statistical Areas Population Average Annual Percent Change Area 1990 1995 2000 2005 2010 2015 2020 2025 90.95 95-00 00-OS OS-15 15-25 State of Colorado 3,304,042 3,811,077 4,327,192 4,717,697 5,131,089 5,567,551 6,009,699 6,463,157 2.9% 2.6% 1.7% 1.7% 1.5% Denver PMSA 1,628,290 1,858,008 2,121,117 2,293,319 2,467,447 2,638,143 2,800,785 2,961,931 2.7% 2.7% 1.6% 1.4% 1.2% Colorado Springs MSA 397,887 469,693 520,248 564,902 668,248 654,484 700,814 745,717 3.4% 2.1% 1.7% 1.5% 1.3% BoulderPMSA 226,014 257,500 292,598 315,011 341,001 368,148 392,720 415,323 2.6% 2.6% 1.5% 1.6% 1.2% FortCoilinsMSA 187,081 221,622 253,137 278,605 303,162 327,910 352,529 376,333 3.4% 2.7% 1.9% 1.6% 1.4% Greeley PMSA 131,946 157,173 183,625 217,975 253,667 296,732 346,492 404,596 3.6% 3.2% 3.5% 3.1% 3.1% Pueblo MSA 122,878 130,832 142,054 150,407 159,233 169,652 180,763 191,942 1.3% 1.7% 1.1% 1.2% 1.2% Grand Junction MSA 93,577 105,406 116,998 128,058 141,176 157,180 175,466 194,075 2.4% 2.1% 1.8% 2.1% 2.1% Eagle County 22,118 30,883 42,027 48,781 55,493 62,218 69,091 76,081 6.9% 6.4% 3.0% 2.5% 2.0% Summit County 12,940 18,270 23,705 27,496 31,943 35,921 39,374 42,561 7.1% 5.3% 3.0% 2.7% 1.7% Source: Colo2doDepanmentotLocalAllairs Between 1990 and 1995 the populations of both Eagle and Summit Counties increased at a rate well above those of the State of Colorado as whole or any of the Metropolitan Statistical Areas shown in Table 2-1. Growth in the second half of that decade slowed somewhat and projections call for future growth rates in Eagle and Summit Counties to be somewhat greater than the State as a whole. The growth rate of Eagle and Summit Counties is anticipated to nearly double that of Denver begiruling in the period between 2000 and 2005. HVS Convention, Syorts & Entertainment DRAFT Vaii Conference Center Business Plan Market Overview 2-2 Proximity to Potential A key factor for regional and state markets in attracting events and attendees Event Attendees is their location and overall accessibility. From the perspective of State events, Vail has the advantage of being fairly centrally located in Colorado and benefiting from good interstate highway access. Figure 2-1 shows a map of Vail and its surrounding area. Figure 2-1 Map of Vail and its Surrounding Area - f ~ ~Fa r ?PL ~ vC :3~`. ~c~baa ~ Wellinyiun " .a_s;n;d _ F..~~,, ~*Fart ~~olllrr. - "tearnbu~a t"Spnrgst r%o c.Y _ ~ti~~ 34 ~~GlAeley . ~1,~ M~urr arn,~~, - '^ -~ t' ~'w~ Va _;,a aLi-ti ~ r°5 FertMcrgar~~'~`~,, .,Inasa~' ' 'arc<<u ~' LJnamont' eanrsbur *(L~1eeNer ~u,~c ~'~Srernml ng .B~u der 9 -} "o r ~~ h~a~3; 'fi '~G~enver Farerr- _ ' a Navas Gd ~'~~~~~311~~ ~~ wu f~7 .~:ut> >~~~ j-- ~~~ CT1'l$1=aao t 4717 "~ 5'e~ eiti~ e-~'"t ~ ~ ~, ~`' 61err;ondSonn~gs - L ~~Le~dn!I=_rr~ ~JTOn~<'~ +?''i~'~.Fru,la ~ - ~Pspen t~._. i ll.~i.=,.,ar. ~ _ '.eci~rl~+ ~~ Grand Junction ~ ' _ ' - ~ .,~ ~._ _• C ,~,r c n ~ _ ~5[~~ ~~_- ~~_ ~I~,ar~i;ouSprihps - '-Delta ~~o.~sr~ ~'~ •~:nppl~~,Creek .1 (--~50i~m _.. +i bGunnlson,` ~oalida r~5<1rn ~~fv1Jn rose~'~- - y-~~~arrn I:ity _~~idQ$;GfrS{1C ri.AI GJfIT fnG _._~ Vail is not located at the geographic center of the State, but its highway accessibility makes it relatively convenient to other major population centers within the state. Colorado's primary east-west highway, Interstate-70, runs through Vail and links it to Interstate 25 and the Denver metropolitan area. Interstate 70 crosses the north-central section of Colorado, providing excellent highway access through the mountainous regions of the state. Driving time from Denver to Vail is approximately two hours and 20 minutes via the 1.75- mile Eisenhower Tunnel underlying the 11,992-foot Loveland Pass. The tunnel has made the automotive trip to Vail much safer, especially during the winter months. Opened in 1973, the tunnel took over three years to construct. Interstate-70 is Vail's sole highway-grade link to the rest of the State. Winter weather can have a significant affect on the ease of highway travel in Colorado. In periods of intense snowfall Interstate-70 is sometimes HVS Convention, Sports £a Entertainment DRAFT Vail Conference Center Business Plan Market Overniem 2-3 temporarily closed. Table 2-2 shows the number of times Interstate-70 was closed between Denver and Vail and the total closure time by fiscal year starting with 1998/99. Table 2-2 Data on Interstate-70 Closures by Fiscal Year Year Ido. of Closures Total Time Closed 1998/99 7 6 hrs 27 min 1999/20 22 46 hrs 36 min 2000/01 33 27 hrs 13 min 2001/02 16 44 hrs 34 min 2002/03 45 560 hrs 21 min Average 99-02 19.5 31 hrs 13 min ~ 494 hrs 16 min for March 03 bliaard Source: Colorado Department of Transportation Fiscal year 2002,/2003 included a significant blizzazd in March 2003 that had the highway closed for close to 500 hours just for that one storm. Excluding 2002/03 and this remarkable snow event, the average between 1998/99 and 2001/02 was 19.5 closures for a total of 31 hours and 13 minutes. If such a closure were to occur during the primary arrival time for conference center event attendees it could cause considerable difficulties for an event. The typical overall amount of closure time does not suggest that weather-related closures will present a major obstacle for conference center operations, but warrants consideration in assessing the perceptions of events planners when considering the potential challenges of getting attendees to and from events. Table 2-3 shows the population of metropolitari statistical azeas in Colorado and nearby states and the distance and estimated driving time between each of them and Vail. FNS Convention, Sports £~ Entertainment DIL9FT Vail Conference Center Business Plan Market Overview 2~ Table 2-3 Population, Distance, and Drive Time from Vail, CO Market MSA 2000 Miles from Drive Time Population Vai! from Vai{ Colorado Vail° 4,531 na na Denver 2,581,506 97 1:44 Boulder 291,288 108 2:06 Fort Collins 251,494 157 2:39 Greeley 180,936 156 2:41 Pueblo 141,472 207 3:19 Grand Junction 116,255 148 2:25 0 ut-of-State Albuquerque 712,738 380 7:47 Amarillo 217,858 527 9:26 Lubbock 242,628 651 11:47 Oklahoma City 1,083,346 773 11:37 'Population reflects U.S. Census 2000 count. Sources: Census Bureau 2000 and Mapquest After Denver, the State's largest market, the next five largest markets are all within a three and a half hour drive or less. Vail's proximity to the State's major population centers makes it an appealing drive-in event destination. Outside the State, the closest major market is Albuquerque, which is a drive of neazly eight hours. Conference Characteristics of the local area influence the ability of a conference center Destination facility to attract attendees to its events, particulazly in regard to those that Characteristics attract attendees from out of town. This section details the market's hotel supply, visitor ath~actions, and overall character and focuses on elements particularly relevant to the attractiveness of the area as a conference destination. Regional Destination Appeal The Rocky Mountains and a generally comfortable climate make Colorado an attractive visitor destination. According to the Colorado Office of Economic Development and International Trade, Colorado welcomed 26.2 million domestic visitors on overnight trips in 2002. Related marketing studies show that Colorado ranks fifth in the nation behind Hawaii, Florida, California, and Alaska in States people would most like to visit. Colorado's attractiveness as a vacation destination provides opportunities for the development of resort- tiVS Convention, Sporfs £> Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-5 based meeting and conference facilities, which take advantage of skiing and proximity to the Rocky Mountains. Lodging Types and Definitions The quality of hotel properties accessible to conference facilities and the quantity of rooms are key factors in the demand potential for events that attract out-of-town attendees. Important questions event planners consider in potential venues are "How many hotel rooms are located close by?" and "Is there a headquarters hotel attached to the venue?" Table 2-4 shows the kinds of guest lodging available in Vail and the number of rooms by type. Ta61e 2-4 !lail Lodging Supply by Type of Unit Lodging Type Wo. of Units Accommodation 1,588 Dwelling Units 704 , Condominium Hotel 491 Fractional FeelTmeshare 312 Total 3,095 Source: Vail Community Development Dept The number of lodging units in a market like Vail that depends heavily on condominium units is a moving target as individually owned units are moved in and out of the rental pool. The Vail Valley Chamber & Tourism Bureau (WTCB) assisted the Town of Vail in developing the preceding supply figures. The bureau estimates that the total number of available lodging units in Vail ranges between 3,095 and 3,400. The Town uses the following definitions to classify lodging properties. Accommodation units are considered to be traditional hotel/motel style rooms, and are available on a year-round basis. According to Vail regulations, an accommodation cannot be individually owned. Dwelling units are defined as units that may be individually owned and can exist in many different forms. The term "dwelling units" may be used to define single-family residences, duplexes, and multiple family buildings. A dwelling unit may be rented on a short-term basis provided that the period of HVS Convention, Sports & Entertainment DRAFT Vail Conference Center Business Plan Markef Overview 2-6 rental doesn't exceed 31 days and the entire unit is rented to the same guests for the duration of the rental period. Condominium hotels are defined as hotel buildings with a portion of rooms set aside for individual ownership. A condominium hotel may often resemble a traditional hotel in its manner of appearance, marketing and management. Fractional Fee/Timeshare units are defined as properties shared among several people, corporations, or partnerships. The use of the property by any individual at the exclusion of others is determined in advance by contract. Six Vail properties currently fit this description. Vail Resorts has joined the Vail Valley Chamber & Tourism Bureau to launch the Lodging Quality Initiative. This new program will provide guests with more detailed information on lodging options and will rate the existing inventory in the area. Proposed Vail Lodging Development The Town of Vail has received a number of applications and proposals for the construction of additional lodging facilities. Table 2-5 shows the location and type of lodging proposals Vail has recently received, as well as the number of units proposed at each location and the total net changes in rooms. Table 2-5 Proposed Lodging Development in Vail Development Fractional .Employee pccom- Total Net Location Dwelling Condominium Timeshare Housing Units modation Change Core Site 14 125 - (90) 23 72 North Day Lot -- -- -- 90 -- 90 West Day Lot 125 44 - -- 46 215 Four Seasons 20 -- 20 - -- 40 Sonnenalp 9 -- 14 -- (24) (1) Tivoli 1 -- - -- 11 12 Front Door 13 -- - -- 2 15 WI 39 -- 40 -- 24 103 Total 221 169 74 0 82 546 Source: Vail Community Developmerrt Dept. These numbers are shown as reported during the development review process of these proposals. The number of units and style of development FNS Convention, Sports fd Entertainment DRAFT Uail Conference Center Business Plan Market Overview 2-7 may change as a result of the development review process. Some of the rooms may drop out of the lodging pool during the construction process. i:xisting Wotel The Vail community does not currently have a true conference center facility ironfeirence ~entees that features a large multipurpose exhibit/ballroom space and breakout meeting space appropriate for conferences and other events in excess of 500 people. Vail does have several resort hotels that feature meeting space for in- house group events. Table 2-6 summarizes selected lodging facilities in Vail that feature on-site meeting space. 'able 2-6 Selected Hotels with Meeting Space in Vail SF Total Maximum Facility Location Lodging Func6en # of Rooms , Function Space Roams Vail Cascade Resort and Spa Park Hyatt Beaver Creek Ritz-Carlton Vail Marriott Mountain Resort & SPA Manor Vail Resort Lodge at Vail Evergreen Lodge Lion Square Lodge Sonnenalp Total Max. Single Meeting SF Largest Room Room Ballroom Space Banquet Capacity Capacity Vail 292 21,555 17 1,480 5,940 490 Beaver Creek 274 16,350 15 1,120 8,631 710 Bachelor Gulch 237 14,040 12 960 7,200 600 Vail 344 13,736 16 940 8,286 690 Vail 144 8,710 7 600 3,496 290 Vail 165 7,433 7 510 5,424 450 Vail 128 5,936 5 410 1,942 160 Vail 118 5,380 5 370 3,070 250 Vail 90 4,820 7 330 4,265 350 ' Exctr~des prefunction space, terraces, outdoor space, and hallways Sources: Respective facilities and HVS Four Vail hotel properties have more than 10,000 square-feet of meeting space, but none have a single ballroom space in excess of 8,700 square feet. Of the hotels presented in Table 2-6, several have large outdoor areas set aside for outdoor events and meetings. Those spaces were not included in this summary of meeting space at lodging properties. In addition, the Vail Cascade has a tennis court it uses as an exhibit hall type space for certain events, but this space was not included since it isri t purpose built function space comparable to the other spaces. . The following text describes the Vail facilities with the largest amounts of function space and provides information on their size and capacity, as well as the overall character of each facility. HVS Convention, Sports Fj Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-8 Vail Cascade Resort and Spa The Vail Cascade Resort and Spa is located in the Cascade Village area of Vail. The facility provides ski-in/ski-out access. The resort offers function space and a wide variety of lodging options including suites, condos, homes, and hotel rooms. The conference center has approximately 21,500 square feet of space divisible into 17 separate rooms. The facility also has the Gore Range Exhibit Hall, which is a converted indoor tennis facility that measures 19,234 square feet. The .Centennial Ballroom, the largest purpose-built event space, has 5,940' square feet of function space. The resort has 328 lodging rooms and suites in addition to condominiums and private residences. The property includes a 78,000 square foot spa and club that includes a swimming pool, basketball court, tennis, racquetball and squash courts, and a retail shop. Other amenities include a movie theater, restaurant, and general store. According to interviews with management, the facility typically does 65 percent of its room nights in the group segment. However, the downturn in the economy has lowered the share of group business to below 60 percent. Group demand is roughly composed of 65 percent corporate, 25 percent association, and 10 percent SMERFE (social, military, educational, religious, fraternal, and entertainment). Approximately 35 percent of the group demand at the property originates in Colorado, with Denver serving as the primary feeder market. Park Hyatt Beaver Creek The Park Hyatt Beaver Creek,is located 20 miles from Eagle County Airport and 10 minutes from Vail. The Hyatt has a total of 274 hotel rooms that include standard guest rooms, panorama kings, and executive kings. The ski- in/ski-out resort also offers numerous year-round activities and an on-site spa. The facility offers a total of over 16,000 square feet of function space and the . largest single dedicated ballroom space among resort hotels in the Vail Valley at 8,600 square feet. Ritz-Carlton Bachelor Gulch The Ritz-Carlton Bachelor Gulch, located in the Beaver Creek resort area, has 237 lodging rooms. The resort offers panoramic views from 90 percent of guestrooms and suites. The room choices include 29 one, two or three bedroom suites, 102 rooms offering private balconies, 77 guestrooms featuring fireplaces, 49 with window seats and four suites offering windows near the bathtub providing views of the surrounding mountains. The hotel HVS Convention, Sports f! Entertainment DRAFT Vail Can(erence Center Business Plan Market Overview 2-9 opened in 2003 and offers a 21,000-square-foot spa, ski-in/ski-out convenience and 36 holes of nearby golf. The spa has 19 different treatment rooms. The overall development includes a number of large private residences. The facility has a little over 14,000 square feet of indoor function space. The largest single space is the Ritz-Cazlton Ballroom with 7,200 square feet of space. The decor in the function spaces is high end and represents some of the highest- quality space in the Valley. Vail Marriott Mountain Resort & Spa The Vail Marriott Mountain Resort & Spa, which was purchased by Vail Resorts, recently underwent a major renovation. The renovation significantly upgraded the quality of both the guest rooms and the function space. The resort has approximately 13,700 square feet of function space and its grand ballroom offers close to 8,300 square feet of space. The maximum size group that the hotel can accommodate for a meet and eat type. of event is approximately 500 people. Management reports that the property has an overall group to leisure mix of about 55 / 45. In the peak ski season the share of leisure demand grows to between 60 and 65 percent. Group demand in the summer is approximately 70 percent of total room nights. Continuing education represents the largest share of group demand by type of event. The resort accommodates most of its association business in the spring and fall when room rates are at their lowest points. Overall, about 30 percent of group business comes from the front range, primarily from Denver-based companies. Lodge at Vail The Lodge at Vail has a total of 7,433 square feet of function space and 165 lodging units, of which 80 are traditional hotel rooms and the rest are individually owned condo units. The largest single event space at the facility is the International Room, which offers 5,424 square feet when all divisible walls are opened. The facility generally lack breakout meeting rooms and relies on the divisibility of its International Room when events need smaller spaces. The largest size group the facility can accommodate is approximately 120 room nights, as anything larger typically exceeds the capacity of their function space and/or exceeds the number of rooms they can assemble for a room block. The non-uniformity of the condo rooms at the facility presents problems for incentive groups that look for facilities that can offer each of their attendees compazable rooms. FNS Convention, Sports & Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-10 Management reports a highly seasonal pattern of existing group demand. During the ski season group demand generally only accounts for about 20 percent of overall room nights. Virtually all group demand in the winter is corporate groups. Management believes the proposed conference center would generate much needed room demand in the shoulder seasons and Monday to Wednesdays throughout the year when tourist demand is relatively low. Sonnenalp The Sonnenalp is a high-end, boutique European-style mountain resort located in Vail Village: The property has 90 guest rooms that aze all suites. Plans are in place to add 40 more rooms by Fall 2004. The facility offers a total of 4,820 square feet of function space. The largest single ballroom space, the Grand Bavaria, is 4,265 square feet. The on-site spa facilities include heated indoor and outdoor pools, whirlpools, a sauna, and other amenities. The Sonnenalp does very little group business in the ski season because its room rates are typically $700 and up during this period. Management indicates that it devotes as many as half its rooms to group business in the summer and will devote the entire inventory to groups in the shoulder seasons, although demand for groups during this time of the year has been very low in recent years. Accessibility, Vail is a year-round resort community located in the northwest mountainous Character, and quadrant of the state of Colorado, 100 miles west of the state's capital city of Environment for Event Denver, which is the mazketing, transportation, and distribution center of the Attendees Rocky Mountains. The town of Vail is located between two ranges of heavily wooded mountains on the north and south sides of Interstate 70. The town is situated 8,200 feet above sea level. Skiing at Vail Vail is acknowledged as one of the leaders in North America's ski industry and with 5,289 skiable acres, is among the lazgest domestic ski resorts. Furthermore, Vail is one of the largest single-mountain ski areas in North America. Vail also boasts the largest number of high-speed chairlifts in the world, enabling skiers to spend more time skiing and less time in lift lines. The ski slopes on Vail Mountain have a vertical drop of 3,450 feet from the summit to the base of the mountain. The mountain receives an average of 335 inches of snowfall each year and maintains an average depth of 60 to 110 inches of snow during the winter months. Snowfall at this high altitude is dry HVS Convention, Sports Fj Entertainment DRAFT Uail Conference Center Business Plan Market Overview 2-11 and over 70 percent of skiing days are sunny. Average daily maximum temperatures are 40:7 degrees in winter, 75.3 degrees in summer, and 55.9 degrees in fall. With 1,536,024 skier visits, Vail recorded the highest number of skier visits in the state of Colorado during the 2001/02 ski season. Over the seventeen-year historical period ending in 2001/02, Vail recorded the highest number of skier visits in every season with the exception of the 1998/99 and 1999/00 seasons, when Breckenridge surpassed the resort's performance. While Vail attracts a significant amount of foreign visitors, Breckenridge attracts more local skiers due in part to its closer proximity to the Denver metropolitan area. Since 1985, Vail Associates, Inc. has undertaken an extensive mountain improvement and expansion program. Vail Associates, Inc. is constantly improving and upgrading the facilities on the mountain. In 2002/03, three new ski lifts will open in the mountain's Blue Sky Basin area, further increasing the mountain's uphill capacity. Other Nearby Skiing Nearby Beaver Creek Ski Resort offers a unique mix of skiing for beginners and experts alike on 1,625 acres accessed by fourteen chairlifts in one of Colorado's most secluded valleys. Twenty-seven percent of the terrain is designated for the advanced skier, while 39 percent appeals to the intermediate and 34 percent to the beginner skier. Summit elevation is 11,440 feet and an average of 330 inches of snowfall occurs each year. In the 1996/97 ski season, Arrowhead, Bachelor Gulch, and Beaver Creek merged to become one large resort. A $68-million mountain improvement project made skiing in Beaver Creek more competitive with neighboring Vail. Skiers at Beaver Creek enjoy more skiing time due to six express quad chairlifts. McCoy Park is a specially designated area for cross-country skiing only, and there are also specially designated family areas for those who wish to set their own pace and ski in a relaxed atmosphere. Other Activities & Attractions Summertime events and attractions are also plentiful in the Vail region. Mountain biking, hiking, golfing, whitewater rafting, camping, and fishing are frequent activities by summertime visitors to the area. Summer concerts, festivals, museums, and art galleries are also appealing summertime attractions. HVS Convention, Sports £~ Entertainment pRPiFT Vail Conference Center Business Plan Market Overview 2-12 The resort nature of the Vail market makes it an attractive location for both event planners and meeting and conference attendees. While skiing and other wintertime recreational activities provide most of the attraction to the area for event planners and attendees, a wide range of summertime events are also available to event attendees. Visitor Attractions Event attendees at conference facilities are often interested in more than simply going to the scheduled events at the facility. Many conferences, trade shows, meetings, and corporate events provide attendees with opportunities to socialize and experience the local attractions that the area surrounding the event site and the host city or town has to offer. One factor event planners consider is the availability of entertainment for their attendees in the afternoon or evening after the planned activities end. In addition to these unique attractions, the accessibility of other activities such as golf is also an important factor that event planners consider. The beautiful mountain setting the Vail enjoys provides access to . a wide range of outdoor and scenic activities. Gore Range National) Science School This year-round school, established as anon-profit organization in 1998, offers educational classes, seminars and speakers for youth groups and adults. Also available are guided snowshoeing and hiking tours. Art Walks Visitors to Vail can take part in guided, 90-minute tours of Vail's art galleries. Betty Ford Alpine Gardens Established in 1985, the Betty Ford Alpine Gardens boast four botanical gardens and is the highest botanic garden in the world. More than 600,000 visitors tour. the gazdens each year. Gerald R. Ford Amphitheatre This outdoor amphitheater, named after former President Gerald Ford, hosts a number of summer concerts and performances each year. HVS Convention, Sports & Entertainment . DRAFT Vail Conference Center Business Plan Markef Overview 2-13 Teva i~iountain Games The nation's largest competition of outdoor athletic events, featuring events such as freestyle and extreme kayaking, paddlecross, bouldering, speed and dyno climbing, mountain bike trials, criterion and cross country racing and mountain trail running. Vail l~merica Days This is Vail's annual four-day event to celebrate the country's Independence Day with a series of attractions. Events and attractions include live music, dancing and a pazade. Oktoberfest A two-weekend festival celebrating the Vail Valley's beer-making heritage. Held every September, the celebration includes a sampling of authentic beers, Bavarian cuisine, and live entertainment. Beaver Creek Culinary Festival An outdoor festival that includes culinary demonstrations and competitions, tastings from local restaurants, children's activities and entertainment. Aeea i3usinesses 'The density and chazacter of the area's business base largely determines the level of demand for corporate events such as training seminars, shazeholder meetings, sales meetings, awards banquets, and other similar events. Some of these events, pazticularly training seminars, shareholder meetings, and employee appreciation events can attract out-of-town visitors and associated spending. As a leisure and resort community, Vail lacks a sizeable commercial .presence. The closest major urban center with a large commeraal employment sector is Denver. Table 2-7 shows the largest employers in Denver. HVS Convention, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-14 Table 2-7 Largest Employers in Denver Employer # of Employees Quest Communications 61,000 First Data Corp. 29,000 Teletech Holdings Inc. 27,000 United GlobalCom Inc. 15,700 Mail-Well Inc. 13,150 Centura Health 12,377 Safeway 12,000 HealthOne 9,285 United Airlines 7,700 Wells Fargo Bank West N.A. 6,000 Coors Brewing Co. 3,400 Exempla Healthcare 5,420 Kaiser Permanente 4,141 Echostar Communications Copr. 4,000 Source: Denver Business Journal Among the largest employers in Denver are telecommunications firms and other technology rE~lated businesses. Healthcare companies also employ a large number of Denver-area workers. The technology and healthcare sectors both generate significant .levels of demand for conference space. The healthcare sector is a leading source of continuing education events, which provide a large portion of the existing group event demand in Vail. Employment Employment rates are often a good indicator of the overall strength of a market's economy. Table 2-8 shows labor market data for the Eagle and Summit Counties and the unemployment rates of the State and the US. Hi/S Convention, worts £~ Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-15 Table 2-8 D.abor Market Data Year Labor Force Eagle Summit County County Total Employment Eagle Summit County County Total Unemployment Eagle Summit County County Percent Unemployed Eagle Summit County County Colorado Percent Unemployed US Pereenl Unemployed 1994 16,316 10,567 15,723 10,262 593 305 3.6% 2.9% 4.2% 6.1% 1995 17,452 11,288 16,884 10,955 568 333 3.3% 3.8% 4.2% 5.6% 1996 17,946 11,502 17,393 11,221 553 281 3.1% 2.4% 4.2% 5.4% 1997 19,127 12,106 18,603 11,845 524 261 2.7% 2.2% 3.3% 4.9% 1998 20,501 12,494 19,851 12,164 650 330 3.2% 2.6% 3.8% 4.5% 1999 20,778 12,780 20,257 .12,500 521 280 2.5% 2.2% 2.9% 4.2% 2000 21,299 13,188 20,840 12,920 459 268 2.2% 2.0% 2.8% 4.0% 20D1 21,502 13,296 20,894 12,937 608 359 2.8% 2.7% 3.7% 4.6% 2002 21,455 13,274 20,507 12,697 948 577 4.4% 4.3% 5.7% 5.8% 2D03° 21,920 13,167 20,963 12,980 957 637 4.4% 4.7% 5.7% 6.1% Average 19,830 12,366 19,192 12,048 638 363 3.2% 3.0% 4.1% 5.1% `Year-to{late ligures through August for Eagle and Summd Counties, through September for State and National tigun:s. Source.• Bureau o/labor Statistics The unemployment rate in Eagle and Summit Counties has been consistently below both the State and National rates. Through September of 2003, the unemployment rate in Eagle County has remained stable as compared to 2002, while the unemployment rate in Summit County has increased slightly over the same time period. Colleges atDd The presence of institutions of higher learning in an azea can generate fliniversities demand for educational-related seminars, conferences, and other events. The degree to which these colleges and universities generate demand for a conference center depends upon the number, size, and character of the institutions and whether they have their own conference/meeting facilities. Table 2-9 shows some Colorado colleges and universities, their locations, enrollments, and distance and drive time from Vail. Table 2-9 Colleges and Universities Academic Institutions Location Enrollment Distance Drive Time Colorado Mountain College Glenwood Springs 3,400 61 1:01 Univ. of Colorado at Boulder Boulder 25,355 108 2:06 Colorado State University Fart Collins 22,684 157 2:39 Aims Community College Greeley 3,722 156 2:41 University of Northern Colorado Greeley 10,983 156 2:41 Western State College Colorado Gunnison 2,199 161 3:21 Univ. of Colorado at Colorado Springs Colorado Springs 4,953 164 2:41 Sources: City-Datacrom and Mapquestcom HVS Convention, Sports £> Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-16 Vail has no institutions of higher learning. All of the educational institutions listed here are over an hour from the Vail market, with most of them exceeding two hours in driving time from the Vail market. These institutions have somewhat moderate enrollment, with none over 30,000 students. Given the distance between Vail and these educational institutions it appears unlikely that many opportunities exist for potential event demand in the form of educational conferences, seminars, and tradeshows in Vail. Air Service The County of Eagle owns Eagle County Airport and the Eagle County Air Terminal Corporation operates it. The airport is located approximately 45 minutes from Vail and 2.5 hours from Denver. The airport has five gates and one 8,000-foot runway: Table 2-10 shows a list of the commercial airlines serving the Vail Airport and the non-stop destinations they offer from Vail by season. Table 2-10 Airlines Serving Vail and Their Non-Stop Destinations and Number of Weekly Round-Trip Flights Airline Non-Stop Destinations (# 01 Weekly Round-Trip Flights) Ski Season Unted Denver (42) American D~illas (17) Chicago (8) Miami (1) Newark (7) New York (1) Los Angeles (5) Continental Houston (7) Newark (7) Delta Atlanta (7) Cincinnati (1) Northwest Minneapolis (7) US Airways Philadelphia (2) Charlotte (1) Summer United Denver (14) American Dallas (7) Shoulder United Denver (14) Source: Eagle County Airport Currently, the primary gaps in non-stop service are the Northwest and New England. The level of air service is drastically different in the ski and non-ski seasons. Ski season air service includes 113 weekly round-trip flights, while non-ski season ser~rice includes only 14 round-trip flights between Vail and Denver and seven laetween Vail and Dallas. HVS Convention, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-17 Table 2-11 shows historical enplaned passengers and aircraft departures from 2000 through August of 2003. liable 2-ll Airport Utilization Data Year Enplanement:% Change 20031 146,642 -- 2002 171,182 0.8% 2001 169,826 -10.0% 2000 188,745 8.9% Through August 2003 ' Source: Eagle County Airport The Vail Airport level of utilization fell off in 2001, likely due to a combination of the slowing U.S. national economy and the September 11, 2001 terrorist attacks. The enplaned passengers are highly seasonal, with large numbers in the ski season and very limited numbers during the rest of the year, as shown in Figure 2-2. Figure 2-2 Eagle County Airport Average Enplaned Passengers by Month-2000 Through August 2003 52,503 SOA00 41,350 42,633 40,000 30,000 20,000 16 954 10,000 gq6 1,500 3,012 3,133 1,593 1,264 1,515 0 0 F 5mG ~° o0c9 Source: Eagle CountyAirpat The months of December through March account for 87 percent of the total annual passengers who fly through Eagle County Airport. Eagle County Airport also tracks total airlift capacity by fiscal year. Between fiscal year 1998- 99 and 2001-02 the average annual total airlift capacity, total number of seats on flights, was 269,203. Relative to other resort markets, this level of air HVS Convention, Sports f~ Entertainment DRfIFT Vail Conference Center Business Plan Market Overview 2-18 service to is rather significant. However, the level of passengers and air service is lowest during the months when Vail is most interested in attracting group demand-the shoulder and summer periods. The Town of Vail a.nd Vail Resorts are implementing programs designed to help increase the level of air service in the non-ski season. One method is to guarantee the airlines. a certain minimum level of utilization in exchange for increased service. For instance, in fiscal year 2000-O1 Vail Resorts guaranteed a minimum level of revenue for flights in and out of five different destinations. A similar program led to the addition of a summer flight to Dallas in 2003. The level of utilization on this flight exceeded expectations and officials at Eagle County Airport anticipate that the time period for which this flight operates next summer will increase. Additional such programs and efforts would enhance the accessibility of Vail in the non-ski seasons and help provide additional transportation options for potential conference center events. Lost Business The Vail Valley Chamber & Tourism Bureau (WCTB) tracks a list of potential events that inquired about coming to Vail but were unable to due to a lack of adequate facilities. Table 2-12 shows the number of groups, by month. Table 2-12 Number of Potential Events, by Month 35 30 29 25 21 _ 20 16 1 13 5 13 11 9 10 6 6 6 5 5 0 0 ~~c ~~~ ~~c ~a~ ~~~. ~~. ~a~ ~~o ~~~ J~Jy~ ~~` acJ~~ GO oG ,~ e~ o ) rC P 9~Q` ~o O~ Source: Vail Valley Chamber 6 Tourism Bureau HVS Convention, Sports F~ Entertainment DRAFT Uail Conference Center Business Pian Market Overview 2-19 Note that the volume of lost business in the Vail market peaks in the summer and fall months -the traditional off-peak tourism season in Vail. This seasonality reflects the WCTB's focus on attracting events in the periods outside the busy ski season. Other contributing factors include the price- sensitivity of groups relative to the high ski season room rates, the high overall volume of group events that occur in the summer and fall, and the desire to attend a well known resort destination at a time when they will not be competing with large crowds for lodging; restaurants, and recreational activities. HVS analyzed the WCTB data to determine the various types of groups that inquired about hosting a meeting in Vail. HVS broke the groups into four categories: Corporate, Association, Medical and Other. Figure 2-3 shows the distribution of events by type for both national and state events. Ftgure 2-3 breakout of Event Types for NationaY and State Events National Other 6% Association Medical 31 16% „ , Corporate 47% ' Source: Vail CVB State Association 39% Corporate •:f:' 4% Other 38°~ Medical 19% Source: Var7 CVB Corporate events make up the largest share of potential national events, accounting for 47 percent of the national groups that expressed interest in Vail. Among state events, corporate groups accounted for far less of the total, at 4 percent. The largest share of potential groups among the state events was association events, which represents 39 percent of the total. Medical groups made up 19 percent. Other, which includes smaller events such as weddings, reunions and fraternal social events, amounted to 38 percent of the state groups expressing interest in Vail. Among the four categories of groups, national-scale events accounted for at least 70 percent of events with the exception of the other category. The other category is comprised of primarily state events at 67 percent of the total. HVS Convention, Sports f~ Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-ZO Attendees The WCTB also compiles data on the number of attendees at these potential events for Vail. These events accounted for more than 101,000 attendees, an average of 763 attendees per event. National events account for 82 percent of the total attendees to events that inquired as to the possibility of hosting' a meeting in Vail. The high level of interest among National events is indicative of the strength of i:he reputation of Vail as a resort destination. Figure 2-4 shows the distribution of events by size category in 500 attendee increments. Figure 2-4 Number of Lost Events ly Category of Attendance To sa so 50 42 40 30 20 10 5 4 0 < 500 500 to 999 1,000 to 1,499 1,500 to 2,000. > 2,000 Sources: Vad Valley Chamber 6 Tourlsm8uraau Among the lost events in the WCTB data, 65 percent had between 500 and 2,000 attendees. It is unlikely that the majority of the lost room nights in the under 500 category were lost because of the fact that there was not a facility larger enough for them. The WCTB does not track the reason(s) for losing individual events so there is no way to determine definitively why these lost events elected to go elsewhere. In the case of those with 500 or fewer attendees, it is unlikely that facility size was the primary factor. However, it is likely that many of these events were lost because.there either wasn't a single facility available with a sufficient number of breakout rooms or because of date conflicts. Room Nights The WCTB database does not include estimates of room nights per event. HVS estimated the number of room nights for the events in the lost business data by assuming that 90 percent of the attendees stay in lodging units and HVS Convention, Sports i> Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-21 that these lodgers stay in the market for one night less than the number of days in the event. The intent of this room night estimate is to get a general sense of the overall volume of room nights and to determine whether the lost events in the 500 to 2,000 attendee range are longer on average, and thus will generate more room nights per attendee, than smaller events. Figure 2-5 shows the distribution of room nights by the same attendance categories as the pervious chart on number of events. i:ignre 2-5 Number of fl.ost Room Nights by Category of Attendance tso,ooo 140 000 133,565 120,000 100,000 90,000 90,000 59,450 40,000 50,999 49,425 20,000 19,275 0 ~ 500 ~ 500 to 999 1,000 l0 1,499 1,500 b 2,000 > 2,000 Sources: Vail Valley Chamber 6 Taunam Bureau Among the total of 309,404 lost room nights 209,290, or 68 percent of the overall amount come from events of between 500 and 2,000 attendees, indicating that the average event length is slightly longer for events in this size range than the overall average. Bmpfications of the The review of Veil's tourist appeal and supporting visitor infrastructure, 6yiarket ®eereiew including its hotel supply and year-round supply of attracions, reveals highly positive attributes in respect to the demand potential for conference center events. Vail has a significant number of visitor attractions and amenities that lend themselves to attracting and bringing back out-of-town event attendees. Vail also has a significant number of full-service hotel and condominium properties for a community of its size, making it attractive to groups seeking to host large conferences. The Vail economy, as it is largely based upon tourism, lacks a traditional corporate presence. However, its proximity to Denver, the State's economic hub, helps support demand for local and'state corporate events. The national HVS Convention, Sporfs fa Entertainment DRFlFT Vail Conference Center Business Plan Market Overview 2-22 reputation and appeal of Vail as a premiere resort destination makes it attractive to nation~~l association and corporate events. This appeal extends not only to the ski season, but also to the summer. The level of air service available in the overall area is significant .when one considers the options at both Eagle County Airport and DIA. However, the low level of air service to Eagle County Airport in the non-ski seasons and the distance of Vail from DIA present a challenge in respect to transportation. Comparisons to other.. mountain resorts and their relative access to transportation are important for evaluating Vail's relative demand potential. In addition; surveys and focus groups will shed additional light on the perceptions of event planners regarding Vail's accessibility and the extent to which the Town can augment both its real and perceived accessibility. Review of lost business data reveals there is a significant volume of events that have considered coming to Vail, but have elected to go elsewhere. The lack of a larger event facility and limitations in the overall supply of function space plays a leading role in the inability of Vail to attract such events, given the average number of attendees at 763 is much larger than any existing conference faality can accommodate. HVS Convention, Syorts Er Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5 ZS and the quality of its lodging properties are generally superior to the peer ski resort markets with conference centers. As long as Vail lodging properties do not price themselves out of the group market, the Town's attractiveness provides an advantage relative to the other peer markets. Accessibility is a key concern among event planners. Vail's accessibility relative to conference center locales is a challenge. However, Vail compares favorably to the set of peer resort markets with conference centers. The level of air service to the smaller commercial airports in the peer ski communities is highly seasonal. Monterey is the exception because its attractions are less seasonal. As a result, these communities must depend heavily on the air service of the nearest commercial hub airport in the non-ski seasons. None of the peer markets are located within a short drive of the closest hub airports, but Vail compares favorably to the peer average. This peer market analysis provides a base of information to help guide the facility recommendations and demand and operating projections, which are detailed in the subsequent report sections. The analysis suggests that a facility with a program similar to those of Whistler, Monterey, and Keystone could accommodate a wide range of regional and state business. Access to national business may improve with a slightly larger main ballroom than these peers. Other factors that are more difficult to quantify, such as overall destination appeal, are also relevant to conference center demand potential. Section 2 includes descriptions of the very strong collection of visitor attractions Vail offers. Surveys and focus groups with event planners, detailed in Section 5 of this report, provide insight into the more subjective aspects of Vail's conference center demand potential. HVS Convention, Syorts £~ Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-24 on state/provincial and regional demand. Management of the Monterey Conference Center believes that their main ballroom space is a little undersized for national associations and many national corporate events. Whistler, with a slightly smaller main ballroom space, also lacks a significant volume of national (or North American) demand. However, their recent expansion is cited as. the impetus for landing an ADP corporate event that will bring 6,400 room nights to Whistler in August 2004. Analysis of facility programs and interviews with the managers of these facilities reveal a number of key points that are relevant to the Town of Vail as it considers the development of a new conference center: ~ ^ Breakout meeting space and flexibility of overall function space is critical-Managers of these facilities either referred to the amount of breakout space and the flexibility of their space as a key strength or weakness relative to their demand potential. ^ Non-facility revenues subsidize the financial operations of each of these facilities-Each of these facilities requires an outside source of revenue to 'cover the cost of their operations. This outside revenue comes in different forms including municipal taxes, assessments, and grants. ^ In an increasingly competitive environment for attracting events, the quality of the conference facility and the accessibility to lodging units is more critical than ever-In the past a mountain resort: conference center may have been able to attract a segment of event demand simply due to the attractiveness of its location. However, with the increasing number of facilities in different mountain resort locations, event planners are less and less likely to make concessions on the layout and overall functionality of conference venues. Similarly, event planners are also less likely~to settle for less than appropriate accommodations for their event attendees. Vail compares favorably to the peer mountain resort markets in terms of the number of ski visits. Furthermore, Vail is generally regarded as one of the more attractive ski destinations in the world. This attractiveness as a ski destination translates not only in its drawing power during the ski season, but the overall character and quality of the resort. In part because of the quality of the ski experience in Vail, the Towri s European village atmosphere FiVS Convention, S orts & Entertainment DRAFT Uail Convention Center Business Plan Peer Market Anal sis 5-23 Table 5-15 Annual Budgets of Selected Marketing Organizations in Vail and its Peers Market Organaation Annual Budget Vail' Vail Valley Chamber & Tourism Bureau & Local Marketing District $2,774,814 onterey Monterey CVB /Monterey Convention Auth. $2,800,000 nowmass Snowmass Village Marketing and Special Events Board $2,500,000 Keystone Keystone Resort $1,208,194 Telluride Telluride & Mountain Village Convention b Visitors Bureau $1,000 000 Banff Banff/Lake Louise Tourism Bureau , $920,246 Peer AverageZ $1,685,688 Subject % of Average ~ 164.6% ' Vail Bgure includes the group events budget of the Local Marketing District `Average of peers not including Vail Sources: Respective organintions and HVS It is important to note that the preceding budget figures include expenditures on overall destination marketing in addition to any specific conference center related marketing. The private resort associations that operate and market the conference centers in Whistler and Snowmass were unwilling to share data on their marketing budgets. Vail and Monterey have the most significant marketing resources among the peer markets for which data is available. implications of laee~ This review of a set of six peer resort markets with conference facilities resort Market and provides information on the type, size, and character of conference centers in (facility Analysis these markets. Generally, these facilities consist of a main ballroom/multi- purpose space of less than 20,000 square feet and a considerable supply of breakout meeting space. The Banff Centre is the most unique, and perhaps least relevant facility relative to what Vail hopes to accomplish with a new conference center, as it is designed to function under and academic model rather than as an engine for economic impact. The facilities in Telluride and Snowmass have somewhat smaller main ballroom spaces than the other peers. Two of the most relevant peer markets in terms of destination appeal and the availability of lodging units are Whistler and Monterey. The conference centers in each of these markets have a ratio of breakout meeting space to main ballroom space of 52 percent. Interviews with the managers of each of these facilities indicate that a high volume of flexible meeting space is critical to their success in attracting and retaining events. Both facilities rely largely HVS Convention, Sports £d Enterfainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-22 be to convince meeting planners that the attractiveness of Vail makes it worth the extra effort to get there relative to more easily accessible, but perhaps less impressive destinations. Monterey has an advantage because it is located closer to both a major hub airport and a regional airport. Keystone benefits from being 23 miles closer to DIA, but is 33 miles further from Eagle County Airport than Vail.. Vail has -clear accessibility advantages relative to Whistler and Telluride. ,Although Snowmass is located closer to a commercial airport than Vail that has a superior: volume of service, Snowmass is 74 miles further from DIA, the nearest commercial hub airport. In summery, Vail compares favorable to the peer resorts on average in respect to overall accessibility to air travel. Marketing Budgets The-budget. of the convention and visitors bureau and/or other organizations that sell a particular market is one measure of the marketing resources available for promoting a conference facility. Comparisons between various resort markets is considerably complicated due to the fact that most such markets have multiple organizations promoting the destination or particular attractions. Vail, i~or instance, has a local convention bureau, a local marketing district, and Vail Resorts which each market the destination in varying degrees. Vail Resorts generally focuses its marketing efforts on the ski season and individual vacationers. I-1VS collected data on the annual budget for the organization that either-,has the primary responsibility for marketing each respective conference center facility or the organization that is charged with marketing lodging units in the destination generally, and thus would have a direct interest in increasing group room nights in the market. Table 5-15 shows the annual budgets for the identified organizations in each market for which such data was available. HVS Convention, Sports & Entertainment DRAFT Vatl Convention Center Business Plan Peer Market Analysis 5-21 then shows the distance from the closest commercial airport, regardless of whether it is a hub airport or not, and the level of air service available at that airport. Table 5-18 Comparison of Distance and Drive Time from Closest Hub Airport and Closest Commercial Airport and Air Service Levels Market Closest Major Commercial Hub Miles Drive Total Total Airport Time Passengers Flights Vail Dehver Intemational Airport 122 2:20 35,651,098 494,834 Banff Calgary Intemational Airport 88 1:39 7,884,194 223,132 Whistler Vancouver Intemational Airport 83 2:21 14,877,536 296,626 Snowmass . Denver Intemational Airport 196 3:32 35,651,098 494,834 Keystone Denver Intemational Airport 99 2:05 35,651,098 494,834 Monterey San Francisco Intemational Airport 102 1:47 34,632,474 387,594 Telluride Albuquerque International Support 352 7:22 6,117,646 130,475 Peer Average 153 3:07 22,469,008 337,916 Vail as % of Peer Average 80% 75% 159% 146% Market Closest Commercial Airport Miles Drive Total Total Time Passengers Flights Vail Eagle County Airport 35 0:40 243,196 1,637 Banff Calgary Intemational Airport 88 1:39 7,884,194 223,132 Whistler Vancouver International Airport 83 2:21 14,877,536 296,626 Snowmass AspeNPitkin County Airport 4 0:10 361,983 8,018 Keystone Eagle County Airport 68 1:35 243,196 1,637 Monterey Monterey Peninsula Airport 3 0:06 375,362 NA Telluride ~ Telluride Regional Airport 5 :15 34,245 3,488 Peer Average 42 1:10 3,962,753 106,580 Vail as % of Peer Average 84% 57% 6% 2% Sources: InUf'vidua/ Airports, Airports Council International, and Rand McNalty Vail's proximity to its nearest large hub airport is superior to the peer market average. If Telluride is removed, the average drive time to the nearest commercial hub falls to 2:17,.which is still comparable to Vail. The level of air service at its nearest hub airport, DIA, is significantly higher than that of its Canadian peers and roughly equal to that of Monterey (San Francisco International). Vail is closer to Eagle County Airport than the average distance among the peer set. Since some of the resorts' closest commercial airport is a major hub the average level of air service is much greater than Eagle County Airport. However, these larger hub airports are located an hour-and-a-half or more away, which is further than DIA is to Vail. . Relative to this set of resort peers, Vail's overall accessibility compares favorably. The challenge for marketing conference center events in Vail will e HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-20 reflect underlying trends in business activity and the attractiveness of an area as a place to live and as a place to visit. Table 5-13 shows population figures for the peer markets. Table 5-13 Population of Peer Markets Municipal Municipal Compound Market Population Population Annual 2000 1990 Growth flail 4,531 3,659 2.2% Banff. 7,716 5,688 3.1 Keystone 825 568 3.8°~ INonterey 29,674 31,954 -0.7% 5nowmass 1,822 1,449 2.3% Telluride 6,666 3,732 6.0~° ~Nhistler 9,000 4,459 7.3% Peer Average 9,284 7,975 3.6% Subject °,G of Average 49% 46% 59.7°k Source: Census Bueau Vail has the 3`d smallest population of the peer markets at 4,531 residents. Vail's annual compound rate of population growth of 2.2 percent is the 2nd lowest and is well below the peer average of 3.6 percent. Air Service '& Ar_cessibility The accessibility and affordability of a destination via air travel is an important consideration for planners of national and certain regional events because it affects a destination s ability to attract attendees. This is particularly true for resort conference centers that cater to national and international events. The overall accessibility of resort destinations is comprised of three key factors: ^ Level of air service at the nearest commercial airport, ^ Level of air service a the nearest hub airport, and ^ Drive tune from these airports. Table 5-14 shows a comparison of the distance from the closest major commercial hub airport and the level of air service at that airport. The table HVS Convention, Sports fa Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-19 days is one measure of the relative attractiveness of these peer markets. However, these markets generally focus primarily on attracting groups in the non-ski season when tourism is not at its peak level. Relative~volume of skier days does provide some insight into the capacity of a market to host large numbers of visitors and its general destination appeal. Table 5-12 shows a summary of skier days in peer ski resorts for three between fiscal years 1999 and 2001. Table 5-12 Skier Days in Peer Ski (Resorts Market 2001/02 2000/01 1999/00 Vail' 1,536,024 1,645,902 1,371,702 Snowmass 676,505 740,241 707,600 Telluride 341,370 334,506 309,737 Banff 540,000 350,000 490,000 Keystone 1,069,111 1, 230,100 1,192,198 Whistler-Blackcomb 2,240,000 2,180,000 2,160,000 PeerAverageZ 973,397 966,969 971,907 Subject % of Average 158% 170% 141% Sources: Colorado Ski Company USA Vail is one of the busier ski resorts among the peer markets with over 1.5 million skier days. Some of the markets also have other nearby ski resorts the further augment the level of skier days. For instance, Vail has Beaver Creek nearby and Snowmass is close to Aspen. If the number of skier days at nearby Beaver Creek is included, the total for the Vail are increases to over 2.2 million. [Pepulatiota The local population is a much less important factor for resort conference centers relative to potential event demand than in more typical market areas. However, the local area population does have the potential to support local revenue generating events that can help improve the financial operations of a facility. Although there is no direct correlation between population and the demand for events, this data reveals trends in the overall economic climate of an area and its ability to support both local public events and provide and maintain sufficient visitor-related infrastructure and attractions. High population or growth rates can indicate significant capacity to support local public events and a likelihood that the area will add to its existing urban attractions. Strong population growth also suggests an increasing commercial and fiscal base to support conference facilities. Population changes often HVS Convention, Sports ff Entertainmenf DRAFT Uail Convention Center Business Plan ~ Peer Markef Analysis 5-18 the main ballroom space wasri t designed to enable trucks to back directly up to it for ease of loading and unloading. The demand for exhibits in this main ballroom space has far exceeded the expectations of those who originally designed the facility. The City of Monterey includes the operations of the conference center in its overall public facilities budget. The City's financial statements include total for facility revenLle, as shown in Table 5-10. Table 5-10 Monterey Conference Center Annual Operating Revenue Year Revenue 99-00 1,428,365 00-01 1,545,600 01-02 1,280,387 02-03 (proj.) 1,503,494 Average 1,439,462 Source: Monterey Conference Center According to information obtained from management staff at the facility, the annual operating subsidy for the facility has averaged about $1.5 million recently. Operating expenses of just over $3 million would have produced such a deficit in fiscal year 2001-2002. Financial Operating Estimated financial operations were only available for selected peer resort Summary conference center facilities, as many of them are privately managed and do not release such data. Table 5-11 shows a summary of estimated revenues and expenses of the facilities for which such data was available. Table 5-11 Estimated Revenues and Expenses for Selected Peer Resort Facilities Revenues / Expenses Keystone' Telluride Monterey Banfi Revenues $6,972 NA $1,503 $30,142 Expenses $8,668 NA $3,003 $30,782 Netlncome(Loss) ($1,696) ($600) ($1,500) ($639) Does not include surcharges or resort allocations Sources: Individual Facilities & HVS Skier Days Eaeh of the peer markets, except for Monterey, relies on the ski industry for a considerable portion of their overall tourism demand. The volume of skier HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5 17 Figure 5-4 Monterey Conference Center Number of Events by Demand Segment Other SMERFE 7Q2 39 r++t+y+ ++ili++R~w++ ... ++rO~++r~~+~ +++~: Corporate Association 62 79 Source: MontereyConlerence Center The other category is comprised largely of municipal events and local community use. The Monterey Conference Center tracks the number of groups and the total attendance the facility accommodates, as shown in Table 5-9. Table 5-g Monterey Conference Center Number of Groups and Attendees Year Groups Attendees % Changein Attendees 99-00 362. 602,398 -- 00-01 408 565,560 -6.1% 01-02 280 469,070 -17.1% 02-03 210 383,923 -18.2% Average 315 505,238 Source: Monterey Cenlerence Center The number of conference center attendees has declined significantly in recent years. The downturn in the economy and the State of California's budget crisis have contributed to this decline as associations and corporations have slashed expenses on meetings and overall travel. Management reports that health care and law groups are two of the leading sectors for group demand at the faality. Any group seeking to book events in the facility 90 days out or more must require sleeping rooms, otherwise the dates will be left open for other events that generate room nights. Management praised the overall layout of the conference center and the availability of the 496-seat auditorium. Additional plans call for renovating the nearby 1,200-seat State Theater. If the facility has a shortcoming it's that HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-16 Yable 5-8 Monterey Conferent:e Center Size & Capacity by Function Space Size # of Capacity in # of People Square 10'X10' Area Feet Exhibit Banquet Theater Reception Classroom U-Shape Booths Serra Ballroom 19,600 98 1,620 2,178 2,063 1,342 523 Serra I 11,200 56 926 1,244 1,179 767 299 Serra II 8,400 42 694 933 884 575 224 Steinheck Forum 5,260 26 -- 494 -- 494 -- DeAnza Ballroom 10,665 53 881 1,185 1,123 730 284 DeAnzal 3,275 16 271 364 345 224 87 DeAnza II 3,275 16 271 364 345 224 87 DeAnzalll 4,115 21 340 457 433 .282 110 Ferrante Roorti 2,223 - 184 247 234 152 59 Ferrante I 741 - 61 82 78 51 20 Ferrante II 74i -- 61 82 78 51 20 Ferrante III 741 -- 61 82 78 51 20 Colton Room 1,653 -- 137 184 174 113 44 Colton I 551 -- 46 61 58 38 15 Calton II 551 - 46 61 58 38 15 Colton III 551. -- 46' 61 58 38 15 Larkin I 475 - 39 53 50 33 13 Larkin II 600 - 50 . 67 63 41 16 Dana 500 -- 41 56 53 34 13 Total Function Area 40,976 178 2,952 4,464 3,760 2,939 952 Source: HVS The Serra Ballroom, the largest space in the facility, offers 19,600 square feet and can accommodate a banquet of up to 1,620 people. According to facility management, the conference center functions primarily as a host for State of California events. National demand has been relatively low, which management partially attributes to the size of the main ballroom relative to larger resort conference centers. Events come from a mix of association, corporate, and SMERFE demand, as shown in Figure 5-4. FfVS Convention, Sports £~ Entertainment DRAFT Vaii Convention Center Business Plan Peer Market Analysis 515 The Town of Whistler owns the facility and contracts with Tourism Whistler for its operations. An assessment on area hotels, which is based upon the number of rooms and other factors, helps support the operating and marketing costs of the facility. Management estimates that in the past, prior to the recent expansion and upgrade, the facility generated approximately 50;000 room nights annually. Figure 5-3 shows the estimated average annual distribution of room nights by demand segment prior to the recent expansion and upgrade. -~ figure 5-3 Distribution o4 Whistler Conference Center Room iNights 6y Segment corporate 5,000 SMERFE ++++ .+!+:i++++.+. 15,000 i+~~i +'i ++++ ++i+++++ ++++ ; +i+i+~+i ~+ ~#i+i ,i}++i}t+~+i+++ ?~+i+#{~4 i #+++ + i+ +4+++ ++~++i+ ~ncentlve / .< Other 2,000 Assodatlwr 27,500 Source: Tourism Whistler Corporate demand is down significantly in recent years and association demand accounts for approximately 55 percent of the total business mix at the conference center. Monterey Conference Center The Monterey Conference Center offers close to 41,000 total square feet of function space. Table 5-8 shows the size and capacity by function space at the Monterey Conference Center. HVS Convention, Sports £~ Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-14 Table 5-7 Whistier Conference Center Size & Capacity by Function Space Size # of Capacity in # of Pe ople Area Square 10'X10' Exhibit Banquet Theater Reception Cl assroom U- Shape Feet Booths Sea to Sky Ballroom 16,500 83 1,364 1,833 1,737 1,130 440 Sea to Sky Ballroom A 7,032 35 581 781 740 482 188 Sea to Sky Ballroom B 4,565 23 377 507 481 313 122 Sea to Sky Ballroom C 4,895 24 4~0 538 510 332 129 Sea to Sky Ballroom A/B 9,220 46 762 1,024 971 632 246 Grand Foyer 4,258 21 352 473 448 292 114 Mountain View 1,080 89 120 114 74 29 WedgemountA/B 825 - 68 92 87 57 22 Wedgemount A 405 33 45 43 28 11 Wedgemount B 420 35 47 44 29 11 Soo Valley 405 - 33 45 43 28 11 Spearhead A/B 887 73 99 93 61 24 Spearhead A 405 - 33 45 43 28 11 Spearhead 8 482 40 54 51 33 13 Fitzsimmons 1,589 - 131 177 167 109 42 Harmony A/B 1,897 - 157 211 200 130 51 Harmony A 946 78 105 100 65 25 Harmony B 951 79 106 100 65 25 Garibaldi A/B 2,348 194 261 247 161 63 GaribaldiA 1,143 -- 94 127 120 78 30 Garibaldi B 1,205 100 134 127 83 32 Tantalus 696 58 77 73 48 19 Black Tusk 676 - 56 75 71 46 18 Symphony (Boardroom for 12) - -- •- -- -- '- Rainbow Theatre 3,300 - -- 300 -- -- -- Total Function Area 34,403 104 2,502 3,664 3,187 2,075 809 Sour ce: HVS HVS includes th.e Grand Foyer in with the rentable function space at the facility because it: is designed to serve as a high-end function space as well as prefunction space. The capacity of Sea to Sky Ballroom has grown to over 1,800 people theater style. The Mountain View room is a new glass enclosed conservatory that will provide natural light and views of the mountains with enough space to serve 89 people banquet style. The expanded facility can handle. events with as many as 2,000 attendees. Management expects that peak room nights for events will be in the 1,200 to 1,500 range. The market has a total of approximately 5,200 lodging rooms. The peak season for the facility has always been the spring when many continuing educational events occur. HVS Convention, Sports E~ Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-13 Table 5-6 shows a summary of key facility attributes before and after the upgrade and expansion project. >fable 5-6 Summary of ~Ihistler Conference Center Renovation and Expansion Project Facility Attribute Before Expansion After Expansion Function Space SF 25,000 34,403 Ballroom SF 13,600 16,500 # of Meeting Roams 13 19 Business Centre Capacity None Yes Estiamted Economic Impact $18.5 Million in 2001 $25 Million in 2004 Source: Whistler Conference Center The emphasis of the improvement project was to increase the total amount of function space and augment its flexibility, rather than on creating a significantly larger single ballroom space. The expansion increased the size of the main ballroom by 2,900 square feet to 16,500, which is still smaller than the largest single spaces at Keystone and Monterey. Table 5-7 shows the size and capacity by function space at the expanded and renovated Whistler Conference Center. FIVS Convention, Sports £a Entertainment DRAFT Vaii Convention Center Business Pion Peer Market Anah~sis 5-12 concerts with bands promoted by a local radio station, fundraisers, and festivals including a major film festival held annually. When the facility originally opened its mix of group demand was 75 percent corporate. However, the demand for corporate events has declined dramatically with the downturn in the economy and now the group demand is composed of a more balanced mix of corporate (30 percent), association (40 percent), and Social, Military, Educational, Religious, Fraternal, and Entertainment (,S'MERFE) demand (30 percent). The typical group size for association events is approximately 200 attendees and attendance at corporate events runs between 75 and 120. The facility's 6,000 square foot main ballroom divides into three sections. Management indicates that the primary shortcoming of the facility is its lack of breakout meeting space, particularly small rooms that can accommodate 12, 14, on up to 30 people. Greater flexibility in the limited breakout meeting space the facility does have would greatlyv~nprove the marketability of the facility and its ability to effectively accommodate a wider array of events. Prior to shifting the responsibility of marketing the conference center to the area's convention bureau, the facility was running an annual operating deficit of approximately $800,000. Farming out the group sales activities has reduced the annual operating deficit of the facility to approximately $600,000, although the Town now pays the bureau a fee for marketing the facility. Whistler Conference Center The Whistler Conference Center recently underwent a significant upgrade and expansion. The re-opening reception for the facility occurred on September 27, 2003. The telecommunications firm TELUS has signed a 10- year agreement with Tourism Whistler, which gives TELUS naming rights to the Whistler Conference Centre and designates TELUS as the preferred supplier of Tourism Whistler's telecommunications needs. The renovation started in October 2002 was a $10.5 million (Canadian) project that modernized the building and increased capacity. The project strived to utilize strong environmental practices in its construction. The new Grand Foyer showcases the facility's 40-foot Rumford fireplace. A new roof with design elements indigenous to Whistler's mountain resort aesthetics is also part of the renovation. Sustainable building materials have been used in the renovation of the facility such as natural or recycled fiber carpets, certified wood products, and high efficiency lighting systems. Special deconstruction techniques and the recycling of materials helped to minimise waste. HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-11 conference center to the Telluride & Mountain Village Convention & Visitors Bureau in the fall of 2002, The facility has just less than 11,000 square feet of function space and its largest single room, the Mountain Village Ballroom, has 6,069 square feet of space. Table 5-5 shows the size and capacity by function space at the Telluride Conference Center. Table 5-5 Telluride Conference Center Size & Capacity by Gunction Space Size # of Capacity in # of People Square 10'X10' Area Feet Exhibit Banquet Theater Reception Classroom U-Shape Booths Mountain Village Ballroom 6,069 30 502 674 639 416 162 East Ballroom 2,120 11 175 236 223 145 57 West & Center 3,947 20 326 439 415 270 105 Center Ballroom 1,725 9 143 192 182 118 46 West Ballroom 2,222 11 184 247 234 152 59 IClammer Boardroom 732 -- 60 81 77 50 20 Fallon Boardroom 367 30 41 39 25 10 Chipeta Boardroom 312 26 35 33 21 8 Mezzanine 1,189 - 98 132 125 81 32 Lobby 1,980 - 164 220 208 136 53 Office 312 -- 26 35 33 21 8 Total Function Area 1D,961 30 906 1,218 1,154 75D 293 Source: HVS When the facility is configured at its maximum divisibility it offers nine separate functions spaces. The Telluride Conference Center is a few minutes from Telluride Regional Airport, but the closest major airport, in Albuquerque, New Mexico, is over a seven-hour drive away. There is a Wyndham Hotel across the street with 174 rooms and the nearby Mountain Lodge has an additional 250 units. Additional rooms are available at the Inn at Lost Creek, which has 35 units. According to interviews with both management and CVB staff, the facility primarily hosts local events and has not been as effective in attracting conferences and generating room nights as originally hoped. The - preponderance of local events motivated the Town to take the facility's liquor license in house to increase the net revenue to the facility and help reduce its operating deficit. Most of the .event bookings are occurring no further than three months out. The facility hosts various entertainment events including FNS Convention, Sports £~ Entertainment DKAFT Vail Convention Center Business Plan Peer Market Analysis 5-10 ' Table 5-4 Snowmass Conference Center Size & Capacity by Function Space Size Capacity Area Square Banquet Theater Reception Cl assroom U-Shape Feet SNOWMASS BALLROOM 10,823 894 1,203 1,139 741 289 Anderson Section 4,568 378 508 481 313 122 Carroll Room 1,031 • 85 115 109 71 27 Erickson Roorti 932 77 104 98 64 25 Sinclair Room 932 77 104 98 64 25 Hoaglund Room 3,337 276 371 351 229 89 Hoaglund + Anderson 7,905 653 878 832 541 211 Hoaglund + Erickson 4,269 353 474 449 292 114 Erickson+Canoll+SinclairRooms 2,918 241 324 307 200 78 BEDFORD BALLROOM 4,400 364 489 463 301 117 Section.A 2,180 180 242 229 149 58 Section B 1,890 156 210 199 129 50 JANS AUDITORIUM 956 -- 83 -- -- -- KEARNSROOM 1,670 138 186 176 114 45 SNOBBLE ROONI 550 45 61 58 38 15 _ Total Function Area 18,399 1,441 2,022 1,836 1,194 466 S ource: HV5 The largest space, the Snowmass Ballroom, has 10,823 square feet of space, enough room far a banquet of up to approxunately 895 people. As the first mountain resort conference center built in the region, the facility is considerably older than its competitors in other mountain resorts and is begging to show some signs of its age. The Town of Snowmass staff reports that conference business at the facility has declined sigxuficantly in recent years, by as much. as 60 percent by some accounts. Town staff estimates that the facility attracted approximately 50,000 room nights annually as recently as 1998. The Town is responsible for non- group marketing; activities and the Snowmass Village Resort Association is the sole marketer of the conference center. Telluride Conference Center The Telluride Conference Center is located in Mountain Village, Colorado, which is in the Southwest portion of the State. The Town of Mountain Village developed the facility, which opened on August 5, 1999. The Town owns and operates the fatality, but transferred the responsibility of marketing the HVS Convention, Sports & Entertainment DRAFT' Vail Convention Center Business Plan Peer Market Analysis 5-9 facility is that it lacks attached lodging rooms or rooms within a short walking distance. Vail Resorts owns and operates the facility. A set of assessments supports the financial operations of the center. Conference center lodging guests pay a 10 percent surcharge on their room rates. In addition, Keystone has a 5.9 percent surcharge on any type of good or service purchased in the resort, which works much like a municipal sales tax. Some businesses with older leases in the resort still pay the old 4.7 percerit rate. Without the revenue from these assessments and surcharges, which amounted to $4.9 million, the Keystone Conference Center ran an operating deficit of approximately $1.7 million in fiscal year 2003, excluding selected report allocations like road maintenance and destination marketing that aze typically not included in the financial operations of conference centers. Snowmass Conference Center Snowmass Village is a ski resort area located less than ten miles from Aspen. The Snowmass Conference Center, located in Snowmass Village, serves as the primary conference center for the Aspen Snowmass market. The Town of Snowmass Village sold the conference center to the Snowmass Village Resort Association in 2001 for the amount of the outstanding debt on the faality. The association now owns and operates the facility. There are approximately 1,300 lodging units that belong to the association and directly support the demand for group room nights the conference center generates. The Town estimates that there are an additional 303 lodging units. The association charges an assessment to member lodging properties that helps to fund the conference center's operations. The conference center has 18,399 square feet of function space divisible into 11 separate function rooms, as shown in Table 5-4. HVS Convention, Sports f> Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-8 Corporations and medical groups account for a large portion of the facility's overall group demand. Management estimates that as much as 60 percent of group demand comes from corporate and medical groups. The facility tracks the estimated rozmber of room nights by specific demand segment, as shown in Figure 5-2. Figure 5-2 Estimated Group Room Nights by Demand Segment for Keystone Conference Center Fiscal Year 2002-03 Government 24,649 +i++++++ +++ .+~+++~l+++. + + t+++ii# ++++++O+++04+ + ! ++. +++! + + O i 4 +. ++ + ~ + t++r++++++•'++i~++ +++++++++++ ++++~ ottlef 2,958 Corporate • 34,509 Association 19,719 Source: Vad Resorts The other category includes social events such as weddings and family reunions. The demand for medical group events and continuing education is heavier in the ski season and can account for a many as 15,000 room nights during this three-month period. The small amount of international group business at the facility also occurs during the ski season. Corporate demand is the leading source of event activity in the- summer. The typical event size for the corporate and association groups is 250 to 300 attendees. Some of these events include exhibits with up to 50 exhibitors. It is more common for exhibits to include booths in the non-season and tabletop displays during the ski season. In addition to conferences, the facility also hosts one tradeshow each year, a homebuilders' show. Two annual fundraisers also draw primarily upon local attendees. The Wine in the Pines event attracts approximately 1,000 attendees and the Ski Ball attracts around 700. Other smaller local events also occur throughout the year. There are two hotel properties in the resort that offer 150 and 100 rooms, but the majority of the total of 1,300 available lodging units is comprised. of condos. Management reports that the primary marketing challenge of the HVS Convention, Sports £~r Entertainment DRAFT Vail Convention Center Business Plan Peer Marlef Analysis 5-7 gable 5-3 keystone Confierence Cen4er Size & Capacity by Function Space Size # of Capacity Square 10'X10' Area Feet Exhibii Banquet Theater Reception Classroom U-Shape - Booths COLUMBINE BALLROOftA 19,800 99 1,636 2,200 2,084 1,356 528 Grays Peak 6,600 33 545 733, 695 452 176 Grays, Peak I 2,200 11 182 244 232 151 59 Grays Peak II 2,200 11 182 244 232 151 59 Grays Peakill 2,200 11 182 - 244 232 151 59 Longs Peak 6,600 33 545 733 695 452 176 Quandary Peak 6,600 33 545 733 695 452 176 Quadary Peaky.. 2,200 11 182 244 232 151 59 Quadary Peakll 2,200 11 182 244 232 151 59 Quadary Peak III 2,200 11 182 244 232 151 59 Colorado Rockies Ballroom 16,000 80 1,322 1,778 1,684 1,096 427 Red Cloud Peak 4,000 - 20 331 444- - 421 274 107 Shavano Peak 4,000 20 331 444 421 274 107 Crestone Peak 4,000 20 331 444 421 274 107 Crestone Peak I 1,000 5 83 111 105 68 27 Crestone Peak II 1,000 5 83 111 105 68 27 Crestone Peak III 1,000 5 83 .111 105 68 27 Crestone Peak N 1,000 5 83 111 105 68 27 Torreys Peak .~ 4,000 .. 20 331 444 421 274 107 Torreys Peak I 1,000 5 . 83 111 105 68 27 Torreys Peak II 1,000 5 83 111 105 68 27 Torreys Peak III 1,000 5 83 111 105 68 27 Torreys Peak N 1,000 5 83 111 105 68 27 Crestone Terrace 1,780 -- 147 -- 187 -- -- Shavano Terrace 3,500 -- 289 -- 368 -- .- Castle Peak 3,950 -- 326 439 416 271 105 Castle Peak I 1,000 •- 83 111 105 68 27 Castle Peakll 700 •- 58 78 74 48 19 Castle Peak III 1,000 -- 83 111 105 68 27 Castle Peak IV 700 -- 58 78 74 48 19 Belvedere 3,950 -- 326 439 416. 271 105 Boardroom 480 -- -- __ _ __ __ Total Function Area 44,180 179 3,610 4,856 4,600 2,994 1,165 Source: HVS The total function space at the facility can divide into 25 separate rooms. The large number of breakout rooms and the two large ballroom spaces give the facility a great deal of flexibility. However, the fact that the two larger ballroom spaces are separate limits the ability of the facility to host single larger events. HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-6 conduct leadership and educational seminars at the facility throughout the year. The Banff Centre also has several facilities for arts performances, including a 900-seat theater venue. The facility hosts considerably more association and university events than corporate events: In fact, the Banff Centre has a policy of not accepting private, for-profit groups unless the primary purpose of their event is educational. Most of the event demand at the facility comes from Western Canada, although they do attract some overseas groups, particularly from Japan. The Banff Centre runs as anon-profit organization and receives roughly 40 percent of its operating budget from government sources. The remainder of the operating budget from the facility comes from fundraising activities and , private donors and the revenue from the guest rooms, the conference facilities, and the tuition-based programs that operate at the venue.. Keystone Conference Center The Keystone Conference Center located in Keystone, Colorado is east of Vail, approximately 99 miles from Denver International Airport. The facility offers 44,180 square feet of function space. A recent $11.25 million expansion added a second main 19,800 square foot ballroom space to the facility. Table 5-3 shows the size and capacity by function space at the Keystone Conference Center. FNS Convention, Sports £~ Entertainment DRAFT Vaii Convention Center Business Plan Peer Market Analysis 5-5 'Ia61e 5-2 i$ i3an49 Centre Size & Capacity by Function Space (2 of 2) Area MAX BELL BUILDING Auditorium MB 251 MB 252 MB 253 MB 150 M8 151 MB 152 MB 153 MB 154 MB 155 MB 156 MB 157 MB 158 MB 159 MB Lounge TRANSCANADA PIPELINES PAVILION PAV 201 PAV 202 PAV 101 PAV 102 PAV 103 PAV 104 PAV 105 PAV 106 PAV 107 PAV 108 Total Function Area Size # of Capacity in # of People Square 10'X10' Feet Exhibit Banquet Theater Reception Classroom U-Shape Booths 4,488 -- -- 330 -- -- - 1,102 -- 91 122 116 75 29 2,040 169 227 215 140 54 1,248 - 103 139 131 85 33 990 - 82 110 104 68 26 252 21 28 27 17 7 228 -- 19 25 24 16 6 228 -- 19 25 24 16 6 190 - 16 21 20 13 5 244 -- 20 27 26 17 7 600 50 67 63 41 16 247 - 20 27 26 17 7 475 -- 39 53 50 33 13 1,040 - 86 116 109 71 28 744 61 83 78 51 20 1,119 - 92 124 118 77 30 657 -- 54 73 69 45 18 140 12 i6 15 10 4 140 -- 12 16 15 10 4 140 12 16 15 10 4 140 12 16 15 10 4 140 12 16 15 10 4 140 -- 12 16 15 10 4 215 18 24 23 15 6 118 10 13 12 8 3 2,814 46 2,228 4,526 4,961 2,825 1,097 Source: HVS The largest single space is located in Donald Cameron Hall and has 5,879 square feet. The Banff Centre features 414 of its own lodging rooms. The Professional Development Centre offers 171 bedrooms and suites with full hotel amenities. In addition, Lloyd Hall, a converted university residence, has 177 bedrooms. Smaller halls offer a total of 66 additional bedrooms. An ongoing renovation of some of the lodging at the facility has some of the rooms unavailable at certain times. The Banff Centre serves a number of roles in the region, besides hosting conferences. The faality is home to festivals such as the annual Mountain Film Fest. There is also a large arts festival every summer. Several groups HVS Convention, Sports fa Entertainment 7~RAF'l Uail Convention Center Business Plan Peer Market Analysis 5~ function halls. Table 5-2 shows the sizes and capacities of individual halls and function spaces. Table 5-2 A Banff Centre Size & Capacity by Function Space (1 of 2) Area Size # of Capacity in # of People Square 10'X10' Feet Exhibit Banquet Theater Reception Classroom U-Shape Booths DONALD CAMERON HALL The Banff Centre Dining Room 5,879 Main Floor 3,864 Mezzanine 1,072 Private Function Roam 3-5 3,225 Private Function Room 3 989 Private Function Room 4 989 Private Function Room 5 1,012 Private Function Room 6 1 786 LLOYD HALL Bourgeau Lounge 2,070 THEATRE COMPLEX Eric Harvie Theatre -- Margaret GreenhamTheatre -- The Club 2,040 LF 117 504 LF 121 870 LF 122 2,052 LF 124 2,052 LF 123 870 LF 217 270 LF 221 870 LF 222 2,943 LF 223 870 LF 224 2,943 PROFESSIONAL DEVELOPMENT CENTRE Royal Bank Financial Group Meeting Room 615 BP Canada Energy Company Meeting Room 1,320 Petro-Canada Meeting Room 615 Lobby Lounge 1,300 Second Floor Lounge 645 Canadian Natural Resources Ltd. Lounge 645 The Molson Companies Ltd. Lounge 1,300 Vdeo Conference Room (Boardroom for 8) 300 29 486 653 619 403 157 19 319 429 407 265 103 - 89 119 113 73 29 16 267 358 ~ 339 221 86 - 82 110 104 68 26 82 110 104 68 26 84 112 107 69 27 -- 148 198 188 122 48 171 230 218 142 55 -- 959 -- -- -- -- 246 -- -- -- - -- -- 215 -- -- - -- -- 53 35 13 _ __ -- 92 60 23 - -- -- 216 141 55 -- -- 216 141 55 -- -- -- 92 60 23 -- -- 28 18 7 -- -- 92 60 23 -- -- -- 310 202 78 - -- -- 92 60 23 -- -- -- 310 202 78 51 68 65 42 16 109 147 139 90 35 51 68 65 42 16 -- -- 137 -- -- -- -- 137 -- -- Source: HVS FfT/S Convention, Sports £~ Entertainment DRAFT Vail Convention Center Business Plan Peer Market Arutiysis 5-3 square feet. Whistler has the largest supply of lodging units at approximately 5,200. Figure 5-1 graphically shows the square feet of function space in the largest single space and the remaining amount of space in each resort conference center. Figure 5-1 Square Feet of Function Space in Peer Resort Conference Center Facilities •• }~ ~ 52,014 l3enff Keystone 44,790 Monfe~ey ~ •' 40,978 s2' Whistler r 34,403 Snowrtuss ,< ts•399 ®LargestSpace '°~ o Other Function Space ~ 10,981 TeOuride 0 10,000 20,000 70,000 40,000 50,000 60,000 Sources: Respective Faalities B tiVS The conference centers in Keystone, Monterey, and Whistler each have similar facility programs with a ratio of breakout space to total function space of 52 to 55.2 percent. ®escription of ~eeQ HVS contacted the management staff of each of the peer resort conference Resort Conference centers and conducted interviews to collect information on the facilities and aaenters their operations. Banff Centre-Banff, Alberta The Banff Centre began as a conference facility for the University of Calgary. Now as a municipally run venue, the Banff Centre has 32,595 square feet of function space. The facility is in a campus-type setting with several different HVS Convention, Sports £~ Entertainment DRAFT Vail Convention Cenfer Business Plan Peer Market Analysis 5-2 Summary of Peer Resort Markets and Facilities Each of the markets will not meet all of the preceding criteria, but by using these criteria HVS is able to develop a list of markets that are particularly informative for assessing the event potential in Vail. HVS does not intend for the list of peer markets to include all of the markets Vail will compete with for events, but rather a subset of primary peer markets and faalities that are particularly informative regarding Vail's event potential. For instance, any market with a conference center or hotel with conference space will compete with a wide variety for conference events. However, simply because Vail competes with such cities for events does not mean that comparisons between their populations, air service, and other factors are relevant to the potential event demand for Vail. The intent of the market comparisons that follow is to quar-tify some objective factors that can serve as indicators of the relative demand potential. of Vail and the appropriate conference center facility program necessary to achieve this potential. In addition, comparisons regarding the supply of available hotel rooms will enable the assessment of the ability of the existing hotel supply to accommodate potential future demand. Table 5-1 shows the selected resort facilities, key characteristics of their function space, and the area supply of lodging rooms. Table 5-1 Summary nt PP_P_r Resnrt Market Facilities Facility Square Feet at Meeting Space Largest Single Space Largest Room Banquet Capacity Maximum Number of Meeting Rooms Lodging Units in Market Area Banff Centre 52,614 5,879 486 53 4,364 Keystone Conference Center 44,180 19,800 1,636 25 1,300 Monterey Conference Center 40,976 19,600 1,620 15 4,500 Snowmass Conference Center 18,399 10,823 894 10 1,300 Telluride Conference Center 10,961 6,069 502 9 1,362 WhisOer Conference Centre 34,403 16,500 1,364 19 5,200 Peer Facility Average 33,622 13,112 1,084 22 3,004 Sources: Major Exhibit Nall Directory 2002 and respective lacilities The conference centers have an average of over 33,000 square feet of function space and a largest single function space of approximately 13,100 square.feet. The Banff Centre has the most total function space at 52,814 square feet, but is set up as a campus and has a large amount of total function space located in several small breakout spaces in a number of di#fererit buildings. The Keystone Conference Center has the. largest single event space at 19,800 HVS Convention, Sports & Entertainment DRAFT Uail Convention Center Business Plan Peer Market Analysis 5 1 o Peer Resort arket and l:acility Analysis One method of estimating the demand potential and facility needs of a community is to compare it to a set of peer markets in order to determine whether there are any obvious opportunities or deficiencies that indicate how effectively a community should be able to attract and accommodate events. A combination of objective data and subjective comparisons is necessary to accurately assess the relative market potential of various communities. This peer resort market and facility analysis is one of several factors that HVS considers when developing its facility recommendations and demand and operating estimates. HVS compared Vail to a set of resort communities with conference centers. None of these peer resort markets may completely match the combination of world-class skiing and an attractive village atmosphere that exists in Vail. However, they each have certain similarities that provide opportunities to assess the relative market potential of a conference center in Vail. HVS selected six resort peer markets to assess as part of a comparable demand analysis. HVS based the selection of peer markets on: ° The leading role of tourism in the area's overall economy, ° Geographic location (cities located in the Rocky Mountains when possible), ° Accessibility of skiing, ° Existence of a stand-alone conference center without attached lodging units, and ° Markets that function as national and/or international tourist destinations. HVS Convention, Sports fj Entertainment DRAFT Vail Conference Center Business Plan LodQinAAnalysis 4-5 lodging for conference center groups will likely be at different times of the year. Figure 4-3 shows the seasonal trends in occupancy rate in the Vail market between 1997 and the first three quarters of 2003. Figure 4-3 Seasonal Occupancy Trends, 1997-2003 (Through September) HVS Convention, Sports & Enterfaittment DRAFT Vail Conference Center Business Plan Lodging Analysis 4-4 the larger properties. Table 41 shows the Vail lodging properties that participate in Hill & Company's data set and the share of total properties in the Town. .~~ Table 4-a Bodging Properties in Hill & Company Data Set Number of Number of Fractional Property Hotef Rooms Condo Fee / Total Rooms Timeshare Antlers at Vail p 92 -- 92 lion Square lodge 28 82 __ 110 Lodge Tower/Riva North 48 32 -- 80 Montaneros 0 32 -_ 32 Mountain Haus 10 64 -- 74 Simba Resort 0 65 -- 65 Vail Raquet Club p gg __ gg Lodge at Vail 125 0 -- 125 Holiday Inn Chateau Vail 120 0 -- 120 Marriott Resort Vail 344 0 -- 344 Sitzmark at Vail 35 0 -- 35 Vail Cascade Resort & Spa 292 0 -- 292 Manor Vail Resort 52 92 __ 144 Total in Hill & Co. Set 1,054 555 -- 1,609 Total in Vail 1,588 1,195 312 3,095 % of Rooms in Hill Data 66.4% 46.4% 52.0% Sources: Nill & Company, Vail Valley Chamber & Tourism Bureau, Individula Properties & HVS The participating lodging properties include nearly two-thirds of the total number of hotel units in Vail. Overall, the data set includes less than half of the available condo units and 52 percent of the total supply. Although it is impossible to know exactly what the overall occupancy and average daily rates are for the overall market, given that a higher percentage of the non- reporting units are condos, it is likely that the actual overall occupancy rate in the market will be lower than the rates reported in the Hill & Company data. As evidence of this, the overall Vail Valley occupancy rate for Hill & Company's data set was 44.5 percent in 2002 compared to 33.7 percent for condos. Despite the fact that the Hill & Company data may slightly overstate overall occupancy in the market, the data does provide valuable insight into seasonal trends in occupancy and ADR. Hill & Company occupancy and ADR data in Vail reveal the degree of seasonality on the overall demand for lodging and how the availability of HVS Convention, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Lodging Analysis 4-3 The availability of. rooms for group room blocks tracks with the demand for individual leisure room nights. Availability is highest in the shoulder tourism seasons in the spring and early fall when tourism demand is at it lowest points. Group room availability is lowest in the ski season, December through March, and the summer, when many families vacation in Vail to take advantage of the mild mountain climate and the many available outdoor activities. The mast variation between the weekday and weekend numbers occurs in the peak ski season when weekend group rooms are very scarce due to the high demand for weekend lodging for skiers. The data on group room block availability indicates that even during the peak ski season there is still lodging available for groups. It should be noted that lodging managers might be tempted to overstate the availability of group room blocks in an attempt to improve the prospects for the conference center. However, HVS interviewed several Vail lodging property managers and asked them specifically about the availability of group room blocks in the ski season. These managers indicated they were reluctant to devote large portions of their rooms to group demand in peak tourism periods. However, they also noted that even in the height of the ski season they still had some excess capacity, especially on weekdays and were supportive of the idea of attracting groups that meet on weekdays during the ski season. When considering; the overall availability of rooms in Vail it is important to remember that there are a number of condominium units that move in and out of the rental pool for various reasons. One of the primary factors that influence the number of units in the rental pool is the level of lodging demand. If Vail develops a conference center and the overall demand for rooms nights increases, the percentage of condo units in the rental pool will increase. These condo units can serve the additional group demand, but may more often serve individual leisure demand that is compressed away from the hotels due to the higher percentage of hotel rooms devoted to group demand. In addition; as noted in Section 2 of this report, there are 668 new lodging units proposed and in various stages of the development review process. The proposed conference center would likely not open before 2007 and many of thesE~ proposed lodging units should be available by then. Occupancy and Average Daily Rate Hill & Company track data on occupancy and average daily rate (ADR) among lodging properties in the Vail Valley. There are 13 properties in the Town of Vail that participate in Hill & Company's research, including most of HVS Convention, Sports £d Entertainment DRAFT [/ail Conference Center Business Plan LodAinAAnalysis 4 2 Figure 4-2 shows the month-by-month variation in the number of weekend lodging room blocks available in Vail. Figure 4-2 Vileekend Rooms Available for Group Room Blocks in Vail by Month Figure 4-1 ~leekday Rooms Available for Group Room 131ocks in Vail by Month HVS Convention, Sports fa Entertainment DRAFT Vail Conference Center Business Plan LodAingAnalysis 4-1 4. Lodging Analysis The planned conference center will be a stand-alone facility and will not include its own attached lodging units. The facility will depend upon a number of proximate lodging facilities for its room blocks. Occasionally, larger events may require the use of rooms in other properties located further away in Vail or even those in nearby Vail Valley resort areas. 1-iVS analyzed data on the lodging market in Vail and the overall Valley. This data reveals trends in rate and occupancy that could influence the overall availability and cost of lodging rooms for potential conference center events. As Vail is a seasonal tourist destination, the occupancy and average daily rate ("ADR") of Vail lodging properties is expected to show signs of significant seasonal variations and ebbs and flows of overall tourism demand in the region. Accordingly, the ability of Vail to provide blocks of committable rooms for conference center events is likely to vary with this seasonal change in room demand and supply and with shifts in overall tourism demand. Room Availability The availability of room.. blocks in Vail will vary considerably between the peak ski season when tourism reaches its highest level and the shoulder seasons in the spring and fall. The Vail Valley Chamber and Tourism Bureau conducted a survey of lodging property managers to estimate what the overall availability of rooms for groups was in each month of the year. The managers reported the number of rooms that they would be willing to commit to a group room block in each month, both for weekdays and weekends. Figure 4-1 shows the month-by-month variation in the number of weekday lodging rooms available for group room blocks in Vail. In other words, this data shows the number of rooms lodging property managers estimate they are willing to commit to group room blocks in advance for events occurring in the conference center. HVS Convention, Sports F~ Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-24 Interviews with local hospitality professionals and meeting planners reveal a demand for events that exceed the capacity of existing facilities in the Vail market, particularly with respect to the need for single larger venue than currently exists. In difficult economic times, the need for meetings, training seminars, corporate retreats, and other such activities does not decrease. However, the capacity for potential users to afford off-site event spaces declines significantly in difficult economic periods. Such cycles are temporary and' facility planning should focus on the longer-term average level of demand for function space. Current trends in the meetings industry suggest a shift from national to regional, state, and district events. State associations are increasingly looking towards the development of district meetings and specialized educational programming to keep their members engaged and involved on a more local level. Vail is well positioned to attract state and local demand due to its great reputation as a destination among state event planners and its proximity to the State's two primary population centers in Denver and Colorado Springs. Vail also has a unique destination appeal capable of attracting national events that are looking for new locations to help attract members who base their decisions on whether to attend events upon its location. National association events that look for new destinations with considerable appeal will take notice of the many natural attractions the Vail area offers. In the following analysis, HVS will assess Vail' amenities and visitor infrastructure, event planners' perceptions of it as an event location, and other factors that influence its overall event potential. The answers to these questions will help HVS determine the appropriate type of facility, if any, for Vail and the volume and character of events likely to occur at the recommended facility. FIVS Convention, Sports i~ Entertainment DRAFT Uail Convention Center Feasibility Study Industry Trends 3-23 criteria. In an oversupplied market, quality expectations are likely to increase in importance. • Emergence of "Destination Meeting Resorts" - Several resort communities have emerged as primary meeting resort destinations, such as Las Vegas and Orlando, among others. These cities have undergone rapid growth in the supply, of hotels and resort conference center facilities that are quickly absorbed with new business: They have in common a strong tourist appeal, attractive climate, and offer an appealing experience for the event attendee. Their ability to attract a large number of attendees is a prime consideration in site selection. Cities with such strong appeal are likely to continue to be the most successful. conference destinations in terms of overall number of attendees. However, a location such as Vail may present an appealing alternative to the typical warm weather beach of golf-based resort. • Propensity to Travel -Declining cost of travel (in real terms) and the increase in the propensity to travel has been a primary driver of long- term growth in the meetings industry. Recent events that temporarily reduced the ability and desire to travel clearly demonstrated the importance of travel propensity to the industry. However, in the long- run, ,expansions in the transportation system and continued innovations that reduce costs and increase the ease of travel are likely to support the growth of the meeting industry. • .Improved Communications Technology -Over the past decade, industry experts have engaged in a great deal of speculation that improvements in telecommunications technology will supplant the need for face-to-face meeting. To date, there is no evidence that video conferencing or the Internet has become a viable substitute for in- person 'communication. Society still prefers person-to-person interaction. to exchange ideas and information, and to build relationships. To the extent that improvements in communications technology have contributed to overall economic growth, they have more likely fostered the growth of the meetings industry: Implications for Vail Continued growth in the meetings industry depends largely upon continued growth of the national and local economies. The recent economic downturn has brought difficult times for most industries, and the events and travel industries are no exception. However, planning efforts must focus on the long term, recognizing the realities of economic cycles. HVS Convention, Sports & Entertainment DIUIFT Yail Convention Center Feasibility Study Industry Trends 3-22 planners to use smaller mazkets. Like video conferencing, this effect is likely to be temporary. fEm~rging 9ndust~b Over the past few decades, the meeting and convention industry has evolved 'spends dramatically from a budding industry to a more mature one that has become an important driver of the national economy. Currently, industry expenditure estimates are over $40 billion per year. As an established industry, the rapid growth of the last four decades is not likely to persist. However, continued evolution and growth can be expected on a controlled scale. HVS has identified the following emerging industry trends. Supply and Demand Equilibrium -Since the majority of convention facilities involve public funding, the expected relationship between supply and demand found in the private sector does not necessarily hold true for the meeting and convention industry. Public entities are motivated to develop conference centers because they seek to stimulate local e-conomic activity by attracting new visitors to the community. These public entities are not constrained by the need to achieve a return on investment in the facility. Rather, conference centers aze considered "loss leaders' for overall expenditures in the local economy. The consequence of this disengagement between the rationale for an increase in supply and the given available ,demand has the potential to lead to an overbuilt situation, as currently planned new construction and expansions aze completed. However, public entities are constrained by limitations on tax resources to support these developments. If conference centers do not produce the expected economic impacts, the justification for increasing public support of conference center development will become less politically viable. These political constraints are likely, in the long run, to keep the supply of space commensurate with demand. Quality of Supply - As the industry has matured and competition among cities has become more intense, meeting planner expectations for quality have increased. For example, proximity of full service hotels to conference centers has become a primary determinant in the decision of whether to locate a meeting at a particular location. Cities lacking suitable hotel properties typically lose business to cities with a good "hotel package." Similarly, advanced communications technologies in conference centers are now routinely expected. Furthermore, surveys of meeting planners show that expectations for quality of services has become one of the most important site selection HVS Convention, Sports £> Entertainmenf DRAI-T Vail Convention Center Feasibility Study Industry Trends 3-21 ^ 39 percent predicted up to 20 percent decrease in future meetings (Fourth Quarter 2001 and First Quarter 2002), and ^ 24 percent expect no decreases. One of the primary accelerating trends mentioned in the Meeting News survey is the potential increase in alternatives to convention and meeting events, such as video conferencing and other related technologies. Figure 3- 12 shows meeting professionals' views concerriing whether organizations will increase their use of electronic meeting methods such as video conferencing and web conferencing. Figure 3-12 Organizations' Future Use of Electronic Meeting Methods Increase Stay about the signficanily ~a + ~i~y+~ *a . a4t~~ J~ . Increase marginally 21% Increase . somewhat 42% Source: Meeting News A majority of respondents, 58 percent, indicated that as a result of the terrorist attacks they believed that their organization would increase the use of electronic meeting methods. The survey interprets the consensus from interviews with selected meeting professionals to be that the terrorist attacks will only accelerate existing technological trends, as opposed to causing fundamental changes in the industry or these trends. The use of video and audio conferencing boosted dramatically after the September 11s' attacks, with various sources estimating an increase between 10 to 50 percent.. Historically, a similar spike in video conferencing usage occurred during the Persian Gulf War in 1991 that did not have a permanent effect on the attendance at meetings and conventions. Meeting and convention industry specialists have speculated upon another post-attack phenomenon - an increase in regional meetings. The desire for safer and more easily accessible drive-in locations for events may encourage HVS Convention, Syorts F> Entertainment DRAFT Uail Convention Center Feasibility Study Industry Trends 3-2A reasons for meeting cancellations. Respondents cited more than one reason when applicable. ~iguee 3-11 Reasons toe tweeting Cancellations so% 45% as% 40% 40% 35% 30% 25% 20% 20% 15% 13% 13% 10% 7% 5% 0°h Organization's Attendees Logistical Organization's Attendees Change in Cmcem for Reluctant to Issues' Concern for Reluctant to Business Plans Safety Meet or Travel Safety • Meet a Travel' • Event was scheduled In New York or Washington D.C. Source: Meeana News Concerns over travel safety were the most prevalent factor in the cancellation of events in the days following the attacks. If the event was planned to take place in New York City or Washington, D.C., 13 percent of the total number of responses from event professionals who cancelled events cited the sponsoring organization's concern for attendee safety. Another 13 percent cited attendee reluctance to travel as a reason for cancellations. However, such safety concerns were not limited to events scheduled for New York and Washington D.C. Of the responses from those who cancelled events occurring in other locations, 46 percent cited the organization s concern for attendee safety and 40 percent cited attendee reluctance to travel, indicating that the events of September 11 were the direct cause of a large majority of event cancellations. An independently produced survey of the meeting industry by the association Meeting Professionals International cited in the discussion produced statistics similar to Meeting News: 24 percent made no meeting cancellations, 49 percent expected to cancel some scheduled programs (of these, 19 percent cited safety issues and 41 percent mentioned financial issues as reasons for cancellation), HVS Convention, Sports & Entertainment IJRAFT Uail Convention Center Feastbiiity Study Industry Trends 3-19 that attract attendees from throughout the country and the world, the weeks immediately following the attacks brought dramatic reductions in event activity and attendance at events that were held. The interruption in air service forced the postponement of some national and international events. Hotel occupancies, particularly in properties that have a significant amount of group business, were extremely low. In second-tier rriarkets that are oriented more towards state groups, the effects were not as pronounced. Attendees to many state events were able to arrange alternative transportation plans, as evidenced by the increase in car rentals, train and bus ridership during this period. The Meeting News survey asked event professionals whether the terrorist attacks had influenced them to cancel meetings. Figure 3-10 shows the share of responses among four answers the survey provides. Figure 3-10 Influence of Attacks on Events One meeting Ona meeting cancelled / no cancelled / mare expected expects future cancellations cancellatons f~*i* *i0**a* + +++*+ No cancelled No cancelled ~ + meetings meetings / no expects future expeded cancellations cancellations 7y, 39% Source: Meeting News Among these event professionals, 54 percent indicated that they had cancelled at least one of their events as a result of the terrorist attacks. However, almost 75 percent of the event planners indicated that they did not expect any future event cancellations. When asked whether their organization will be scheduling fewer meetings as a result of the attacks, 29 percent indicated that they expected a decrease in events. In addition, 54 percent of the responding meeting professionals indicated that they expected attendance at their meetings to decrease as a result of the attacks. The survey went on to ask respondents who had cancelled events the reasons for these cancellations. Figure 3-11 shows the most frequently mentioned HVS Convention, Sports £> Entertainment DRAF"l Vail Convention Center Feasi6ilify Study Industry Trends 3-18 V9se of l~echnology in Overall, the meetings and conferences industry uses a moderate amount of Meeting Facilities technology during events, typically computers with Internet access and audiovisual presentation equipment. The meeting and conference industry lags behind other leading industries in terms of incorporating new technologies. The majority of conventions and conferences still require only basic technological amenities like a laptop or video projectors, items that most facilities possess. Multi-media, whiteboards and videoconferencing are the three most commonly used technologies, as shown in Figure 3-9. ~iguee 3-9 gechnology flised to DeliveP Meeting Content Simultaneous Keypad Translation Response Whitelwards 4% 5% Internet Training 18% 7% Decision-making Software 7% Multimedia 18% : ; • ' • ~ Virtual Trade i~~~ : ' ii Aid Show Piii ~. ~.isi0'is~ ~~~i~ iii i i i ~ 11 % VIdeO i i ~a i i f ii!siii ii V' i Conferendng i +i+i'i CD-ROM 17% ~ Sowce: Successlu/ Meetings, 2000 The variety of methods used for delivering meeting content indicates the need for conference center facilities to be as flexible as possible in their configurations and to have design elements that enable the use of a wide variety of technologies. The number of different methods suggests that portable elements or easily adaptable elements are preferred to permanent, built-in elements. Umplications o$ a ]n the article titled "The Ground Has Shifted" in the October 1, 2001, issue of Continuing Delobal Meeting News, Equation Research posted the results of a survey of 722 Conflict on the meeting buyers one week after the September 11th terrorist attacks on New ieetings/Conventions York City and Washington D.C. This atrocity had an instant impact on the Undustey meetings industry and the willingness of people to travel to events. The survey revealed two trends that may persist: more electronic conferencing via satellite broadcasting and the web, and an increase in regional meetings. The attacks' immediate effects on the convention and meeting industry played out differently in various types of markets. In larger national markets HVS Convention, Sports £> Entertainment DRAFT Uail Convention Center Feasibility Study Industry Trends 3-17 Table 3-4 Historical Annual Exhibition Growth -Percent Change Year Exhibition Events Attendees Exhibiting NSF UsedZ Companies 1990 13.7% 25.0% 10.0% 22.2% 1991 4.0% -5.3% 9.4% 3.0% 1992 4.6% 8.5°~ 0.0% 10.6% 1993 2.6% -5.2°~ 0.0% 5.7% 1994 3.5% 16.4% 8.3% 3.4% 1995 1.5°,6 36.5% 0.0% 12.Oq° 1996 0.5% -12.9% -3.8% 0.0% 1997 -1.5% 8.9% 0.8% -0.7% 1998 -1.0% 0.0% 11.1 % -1.6% 1999 4.9% -7.3% 7.9% 7.4% 2000 6.2% 9.8% 0.7% 7.0% Average 3.5% 6.8% 4.0% 6.3% 'Exhibition events with more than 30, 000 square feet of exhibit space. `NSF is the net square feet of exhibit space actually rented by exhibitors. Source: Tradeshow Week Over the past decade, average growth in demand for the events in the Tradeshow Week database has outpaced the average growth in supply. This growth reflects the expansion in the overall economy, but it also reflects an increasing utilization of exhibitions as a means of marketing and sales. Various independent surveys of major businesses rank exhibitions as the second or third most common way companies spend their advertising and marketing dollars..However, the recent slowdown in the US economy seems to be having an adverse effect on the supply of tradeshows, although hard data to support this decline is difficult to find. Economic cycles notwithstanding,. the overall long-term trend of growth suggests that the supply of events will recover along with an overall economic recovery. Conference centers can sometimes house smaller tradeshows, but such events typically prefer to use convention centers with dedicated exhibit halls. However, the data is relevant to conference center demand in that it underscores the demand potential for exhibits at corporate and association conferences and the need for amulti-purpose main ballroom /exhibit space that can accommodate trade booths as well as banquets. HVS Convention, Sports 6 Entertainment DRAFT Vail Convention Center FeastbiIity Study Industry Trends 3-16 Figure 3-8 _ Share of Event Planners Citing Factors as "19ery Important", National vs. Regional National ! Intematlonal Meeting Faalities ~% Duality of Service 60% Overall Affordability 44% Hotel Rooms 42% Facility Type 42% Rotation Policy 7% Membership Appeal 7% Climate 20% ADA Far~lities 14 Dining/Entertainment ~ 11 Odving Accessibiitty 8% 0% 20% 40% 60% 80% Source: ASAE's Association Mewing Trends Regional / State !Local Meeting Fadlities 70% Quality of Service 67% Overall Affondability 58% Membership Appeal ~% Hotel Rooms 42% Rotation Policy 40% Driving Accessibility 39% FadlityType 36% Climate 18% ADA FadliBes 18% Dintng/Entertainment 18% 0% 20% 40% 60% 80% Source: ASAE's Association Meeting Trends The survey asked respondents whether various site selection criteria were very important. The answers of national /international and regional /state / local event planners were very similar. The quality of meeting facilities, service, affordability, and hotel room supply are key criteria for both groups. ~padeshow 'd'~ends Table 3-4 shows the historical growth of exhibition events, attendees, exhibiting companies, and net square feet (NSF) used by exhibitors. Tradeshow Week data focuses on larger consumer shows, trade shows, and conventions in the U.S. and Canada with exhibitions that typically occur in convention and exhibition centers. HVS Convention, Sports & Enfertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-15 Figure 3-7 Distribution of Events by Amount of Required Exhibit Space sa°~ a6% 45% 40°k 35% 30% 27°k 25% 20% 15% 11% 10% 6°~ 2% 2% 2% 4% 5% 0% 0 to 99,999 100,000 to 200,000 to 300,000 to 400,000 to 500,000 to 600,000 to 700,000 + 199,999 299,999 399,999 499;999 599,999 699,999 Source: Tradeshow Week Data Book 2003 Among the events Tradeshow Week tracks, 82 percent use less than 200,000 square feet of exhibit space. This data focuses on events that are somewhat larger than the prime candidates for a conference center, but reflects the fact that the ma}ority of events are towards the smaller end of the spectrum. Event Planner Location Figure 3-8 shows the criteria that convention, association, and meeting event Criteria planners consider as the most important in selecting a destination for their events., HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-14 (den$ Charac4eris$ics Various industry organizations track data on different types of events. The International Association of Convention & Visitor Bureaus ("IACVB") conducts research on the distribution of events by sponsoring organization. Figure 3-6 shows the distribution of events identified by the IACVB. Figure 3-6 ~ Distribution of Conaention Events by Type of Sponsoring Organization Exposition / Tredeshow Other 5°~ Medipl 9% 6% '~ Governmental SMERFE' ~~% 24% Professional 8 Trade 45% ' Sodal, military, religious, fraternal, and ethnic Source: IACVB Spending Survey Trade and professional events account for the lazgest share of events. The other category includes club and corporate events. Tradeshow Week annually publishes Tradeshow Week Databook, containing information on conventions, tradeshows, and consumer shows that require exhibit space. Figure 3-7 shows the distribution of events by the amount of exhibit space they require. HVS Convention, Sports £a Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-13 Tahle 3-3 Summary of Conference Center Revenues and Expenses Revenue /Expense Daily $ per $ per SF % of Sales Person Revenue Food & Beverage $24.63 $46.61 59.1% Confrence Services Equipment 2.52 4.76 6.0% Other 12.97 24.54 31.1% Total Conference Services $15.49 $29.30 37.1% Other 1.55 2.94 3.7% Total Revenues $41.67 $78.85 99.9% Expenses Food & Beverage Total Cost of Sales $9.38 $17.76 38.1% Payroll & Benefits 4.10 7.75 16.6% Other 2.10 3.99 8.6% Total Food & Beverage Expenses $15.58 $29.50 63.3% Conference Services Payroll & Benefits 5.33 10.09 34.4% Conference Equipment 0.81 1.54 5.3% Other 1.20 2.26 7.7% Total Conference Services Expenses $7.34 $13.89 47.4% Total Departmental Expenses $22.92 $43.39 55.2% Income Before Undistributed Operating Expenses $18.75 $35.46 44.8% Undistributed Operating Expenses Administrative & General $5.85 $11.07 14.0% Marketing Expenses 2.57 4.87 6.2% Energy Expenses 1.08 2.05 2.6% Property Operations and Maintenance 2.33 4.41 5.6% Other 1.08 2.03 2.6% Total Undistributed Operating Expenses $12.91 $24.43 31.0% Income Before Fixed Charges 5.78 10.93 13.9% Fixed Charges 4.45 8.43 10.7% Reserve far Replacement of Fixed Assets .0.69 1.29 1.6% Total Expenses $40.97 $77.54 98.3% Net Income Before Income Taxes $0.64 $1.21 1.5% Source: The Compass Report The preceding financial operating statement includes only the direct revenues and expenses of a selected set of conference centers. Additional costs such as non-facility destination marketing, transportation expenses, and others that municipal facilities may carry are not included. ' HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-12 Compass Report, are more commonly associated with convention centers as those facilities feature more exhibition space than do conference centers. Nearly 50 percent of the events booked in conference centers surveyed in the Compass report were approximately one day in length. Nearly 35 percent of the events lasted less than one full day. Figure 3-5 shows the event lengths of the various events booked in the conference centers studied in the Compass Report. figure 3-5 Conference Centee Event Length 2-3 Days 11% + , ++ ;~~~+~+ Less Than A +.++*~*+ 4-5 Days Fuli Day ` • ~.~ • +++ Ya 34% ~+++ One Full Day 49% Source: The Compass Report The Compass Report also amassed information on the finances of the conference centers they studied. Overall, conference centers averaged approximately $3.9 million in expenses in 2001, with $2.1 million of that amount in the form of fixed expenses. Variable expenses amounted to approximately $1.4 million and fixed charges and reserves came to $400,000. Table 3-3 shows a summary of conference center revenues and expenses. FIVS Convention, Sports & Entertainment DRAFT Vail Convention Center FeastT~ility Study Industry Trends 3-Il Figure 3-3 Non-Residential Conference Center Event Bookings by Demand Segment UnivJCollege 20% Corporations 66% +'~„ Govt +.+' .*E .~.0 ,;,*:':* Agencies .. ~:. ~ 7% Assn. 7% Source: The Compass Report Among the uses , of conference centers included in the Compass Report, training sessions and conferences were reported as the most frequent type of use. Figure 3-4 shows the various types of events held in conference centers. Figure 3-4 Conference Center Events 35% 30 30% 25% o 20% 20% 15% 15% 10% 5% 5% S% 2% 0% Training Conferences Seminars Tradeshows Retreats Board Other Meetings Source: The Compass Repoli Training sessions, conferences and seminars are consistent with corporate and educational institution use of conference centers. Tradeshows, which account for five percent of the events at conference centers included in the HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-10 As attendance has declined, so has the average meeting size over the past 12 years. Conventions drew an average of 1,059 people in 2001, compared to an average attendance of 1,079 in 1989. This figure is cyclical and can fluctuate with other factors in an economic cycle. It peaked in 1995 when the average convention had 1,193 people in attendance. Association meetings drew an average of 89 people in 2001, compared to 116 in 1989. Attendance at corporate meetings is also somewhat lower than it was in 1989 when the average meeting had 67 people. In 2001 the average corporate meeting had 61 people. These average attendance figures, despite minor fluctuations, have been relatively stable during the past decade. (Leant Chaeacteristics HVS summarized various industry data on the size and character of conference center demand, event type, and event length as well as summary income and expense statements for stand alone conference centers-those that do not have attached lodging rooms. Horwath Horizon Hospitality Advisors compiled and analyzed data on conference centers throughout North America for their "Compass Report North America 2002." The annual report tracks trends in conference center event bookings, demand, event types and revenues and expenses, and the figures presented here are based upon operational and financial data from 2001. Among stand-alone conference centers, defined in the report as non- residential centers, corporate events represented the single largest segment of demand, followed by university and college events. Figure 3-3 presents the segmentation of conference center event bookings by demand segment. HVS Convention, Sports £> Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-9 Figure 3-2 Attendance (in Thousands) 100 93.7 90 84.5 ~ 80.8 4 79.5 7 .77 8.9 79.9 80 . ~ 70 21:7 13.7 '` 60 ~ 6 17m i5:1 15.6 15.4 50 40 30 5R:4 49.6 55'1 49.3 49.9 51 51.5 20 10 - 0 1989 1991 1993 1995 1997 1999 2001 O Corporate Meetings Association Meetings ^ Conventions Source: Meetings 8 Conventions Total attendance in the meetings industry has declined from its peak level in the late 1980s. Throughout the 1990s the number of association meetings has generally declined. Over the past half decade the number of corporate . meetings has increased slightly and the number. The number of conventions has increased somewhat over this same time period. Table 3-2 shows the average meeting size for these three market segments over the past 12 years. The compound annual growth rate (CAGR) for each meeting category shows how quickly average attendance increased or decreased over each two-year period on an annual basis. Table 3-Z Average Meeting Size by Event Type Type ofEvent/Growth 1989 1991 1993 1995 1997 1999 2001 Conventions Average Attendance 1,079 843 907 1,193 1,035 1,060 1,059 CAGR - -11.6% 3.7% 14.7% -6.8% 1.2% 0.0% Associations Average Attendance 116 105 91 86 94 90 89 CAGR - -4.9% -7.2% -2.6% 4.8% -2.6% 0.0% Corporate Meetings Average Attendance 67 62 69 62 64 61 61 CAGR - -4.4% 5.7% -5.2% 1.5% -2.1 % 0.0% Snurce: Meetings and Corrven6ans, 2Q0? HVS Convention, Sports f> Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-8 Figuee 3-~ dotal ~umbee o9 Meetings (in thousands) 1,200 1,o6s 1,a3a 1,031 1.020 984 985 1,022 1.000 186; • ' . ' '~^t5 206.5 1T5.6 189.5 174:2 177:7 800 600 400 °€~; oc2 ='o'. ~~,.i ~, ~ ise ~,.~ 200 0 1989 1991 1993 1995 1997 1999 2001 OCorporate Meetings Association Meetings ®Conventions . Source: Meetings 8 Conventions For more than a decade there have been approximately_one million meetings and conventions annually in the United States. The great majority of these events are corporate meetings. Associations also generate a large number of meetings. For the past twelve years there have been between 10,000 and 12,000 conventions held annually in this country as well. The total number of meetings and conventions has stayed in a somewhat narxow range during the course of the past 12 years. The number of meetings in 2001 represents a slight increase over 1999, although the year 2000 was presumably a peak year that exceeded both 1999 and 2001 in the total number of events. Attendance trends Approximately 80 million people participate in meetings and conventions each year in the United States. Figure 3-2 shows total attendance figures for the meeting industry during the past 12 years. HVS Convention, Sports £~ Entertainmenf IaRAFT Vail Convention Center Feasibility Shady Industry Trends 3-7 Educational Conference Centers Educational and non-profit conference centers are similar to corporate centers, but are awned and sponsored by colleges, universities, or medical centers. Educational conference centers are often located on a college, university, or hospital campus. Because the primary goal of these facilities is to serve the educational or institutional organization that owns them, location considerations can be led by convenience for the primary user group, rather than potential outside users. Although these facilities ,sometimes accommodate outside business, they are generally most suitable for educational and nlstitutional uses such as lectures, classes, training seminars, banquets, and receptions. Resort Conference Centers Resort conference centers provide all of the facilities and services available at executive conference centers, but place a greater emphasis on recreational activities in a resort setting. Although small corporate meetings are the main source of business, recreational activities are regularly scheduled, integral components of the program. In many cases, resort conference centers have an advantage over executive conference centers. These properties are flexible enough to accommodate both resort guests and more serious meeting attendees. Many meeting planners welcome the opportunity to provide breaks during intensive meetings by scheduling, golf tournaments or other leisure activities. Some companies also use resort conference centers when offering incentive trips for employees and their spouses. Number of Meetings There are more than one million meetings booked in the United States each year by corporations, associations, and convention planners. Figure 3-1 shows the total number of meetings held annually in these three specific meeting segments throughout the past 12 years. IIVS Convention, Sports £r Entertainment DIUIFT Vail Convention Center Feasibility Study Industry Trends 3-6 E^oue Main '1°ypes of Industry publications generally categorize conference centers based on the conference ~enfers market segment they target. Four specific types of conference centers are most common. The competitive environment is dominated by four types of conference centers: executive, corporate, educational, and resort. Given the attractiveness of Vail to event planners as both a resort destination and ideal for corporate /executive meetings, HVS positions the proposed Vail Conference Center as a combination executive and resort conference center.. Executive Conference Centers Executive conference centers are designed to meet the needs of mid- to upper-level executive and managerial meetings. These functions may revolve around strategic planning, forecasting and budgeting, sales and marketing, state-of-the-corporation reports, new product introductions, and educational and training seminars. Demand generators include corporations and (less frequently) associations and institutions. Executive conference centers are designed to min;m;~e external noise, congestion, the lure of off- site activities, and similar distractions. Large executive conference centers are often characterized by a "think tank" atmosphere and feature full audiovisual capabilities, recreational alternatives, . and first-class amenities. They can also offer flexible space that is suitable for a broad range of corporate, association, government, and social uses. Many smaller facilities cultivate a residential ambiance and resemble mansions, retreats, or park-like estates. Corporate Conference Centers Corporate conference centers are similar to executive conference centers; their distinguishing feature is that they are owned and sometimes operated by a specific corporation and are often located on or near grounds of a large company facility. Many corporations have made their facilities available to outside users during periods of low demand. A recent trend has been the conversion of in-house conference centers to public facilities that cater specifically to the owning company. Corporate conference centers generally give priority to the affiliated company when booking guestrooms and function space, and outside users are treated as secondary business. Efficient accommodation of the needs of the affiliated company is often the primary concern of these centers, rather than profitability. HVS Convention, Sports fa Entertainment DRAFT Uail Convention Cen#er Feastbiiity SEudy Industry Trends 3-5 Similar to conventions, tradeshows require exhibit halls and are generally restricted to convention centers, as opposed to hotel or conference center event spaces. Like conventions, tradeshows offer a forum for exchanging industry ideas. Tradeshows are more product and sales-oriented than conventions. They are exhibit-intensive, and exhibitors prefer column-free, single-story, open-space facilities. Exhibitors construct temporary custom booths for product display. Tradeshows typically attract a large number of attendees who originate from outside the host city, but their length of stay is shorter and their average spending lower than convention attendees. Many tradeshows are increasing the amount of meetings and other breakout sessions they conduct in order to augment the educational component of their events, attract more attendees, and keep them in the host city for longer periods of time. Consumer Shows -Consumer shows are public, ticketed events featuring exhibitions of merchandise for sale or display. Consumer shows provide a means of product distribution and advertising. Some, such as auto and boat shows, have recreational and entertainment components as well. Consumer shows range in size from small local, specialized shows with a few hundred attendees to large shows with many thousands of attendees. The larger consumer .shows may occur in convention centers, shopping malls, fairgrounds, and other public-assembly facilities with large exhibition areas. Most attendees are local residents, although a few large consumer shows have a regional or national draw. Exhibitors often come from out of town and may follow a series of events occurring in different venues. Site selection considerations for consumer shows include the size and income of the local population, availability of facilities, and the number of competitive shows in the market. Many consumer shows are beginning to incorporate educational seminars, and the availability of meeting space is becoming increasingly important for these events. Assemblies -Assembly events usually involve a ceremony, speech, or other similar activity that attracts a crowd of spectators. These events attract anywhere from ~ 00 to 50,000 people or more and many require arena or stadium seating. Assemblies stem from many of the same sources as SMERFE events, but are less likely to involve a food and beverage element. These events do not usually require large amounts of exhibit and meeting-room space. HVS Convention, Sports £x Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-4 SMERFE events are the most common type of events in most civic centers and locally oriented conference facilities. Generally, SMERFE groups are highly price sensitive with respect to hotel room and space rental rates. Corporate and Other Meetings -Corporate meetings include training seminars, professional and technical conferences, sales meetings, shareholder events, product introductions, and management meetings. Attendance ranges up to 100, with an average of fewer than 50. These meetings are held in hotels with meeting space, conference centers, and sometimes in the meeting room blocks of larger convention centers. Corporate meetings usually require meeting rooms or ballroom space, but not exhibition space. Larger functions are sometimes held at convention centers. Corporate meeting planners and attendees prefer facilities with business amenities and a high-quality, professional appearance. Conventions -Associations, professional groups, and other membership organizations hold conventions, with attendance ranging from 300 to 30,000 attendees, the average of which is approximately 800-900. The larger of these meetings typically take place in convention centers with exhibit halls of 100,000 square feet or more. Smaller events are held in hotels and conference centers. Conventions usually consist of a number of concurrent meetings, with a few general sessions. Facility needs include assembly space for general sessions, banquet facilities, and numerous breakout-meeting rooms. Approximately two-thirds of conventions use exhibit space for displays and booths. Conferences -Conferences are events held by associations, professional groups, and other membership organizations. These events do not always require exhibit space, and are otherwise similar to conventions. They require meeting space for general sessions, food service areas, and breakout meeting rooms. Hotels and conference centers host the majority of conferences. Conventions and conferences generate a greater amount of new spending in the area economy than consumer shows and Iocal meetings because a large percentage of attendees originate from outside the local area, typically stay several nights in the host city, and spend money on accommodations, food, retail goods, transportation, and entertainment. Tradeshows -Tradeshows provide a means for wholesalers and retailers to transact business with industry buyers. Trade associations, independent show organizers, and other companies sponsor and produce trade shows. FIVS Convention, Sports F~ Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-3 Table 3-1 Event Types and Characteristics Event Types and Related Facility Requirement s Event Type Primary Purpose Major Facility Typical Facility Used Requirements Social, Military, Educational, Meeting and/or banquet Religious, Fraternal, & Civic & social Civic center or auditorium Ethnic space Training and Hotels; Conference Centers; Corporate ~ Other Meetings information Meeting space (minimal) Convention Center Meeting exchange Rooms Information Meeting space and banquet Hotels; Conference Centers; Conferences Convention Center Meeting exchange space Rooms Information Meeting space and banquet Hotels; Conference Centers; Conventions exchange space Convention Centers Conventions with Exhibits Information Exhibition, breakout meeting Convention Centers exchange and sales space, and hanquet space Exhibition and breakout Convention Centers: Tradeshows Sales meeting space for some Trademarts; Fairgrounds events Consumer Shows Advertising and sales Exhibition Space Convention Centers; Trademarts; Fairgrounds Combination Shows' Advertising and sales Exhibition Space Convention Centers; Trademarts; Fairgrounds Convention Centers; Assemblies Information Stage, seating, breakout Arenas; Stadiums; exchange meeting rooms Fairgrounds Stage, seating, lighting, Arenas; Stadiums; Theaters; Concerts and Entertainment Entertainment concession areas, ticket Auditoriums; booths, lobby Convention/Civic Centers A tradeshow with private access is followed by a consumer show with public access. Source: HVS International The following is a description of these various types of events: Social, Military, Educational, Religious, Fraternal, and Ethnic Events - Referred to as "SMERFE" events, these events include weddings, fund-raising events, educational seminars, religious gatherings, parties, and other community events that have a civic, social, or entertainment purpose. These events typically require a ballroom or multipurpose space where food and beverage services and, in some cases, entertainment can be provided. FNS Convention, Sports & Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-2 include electricity, telecommunications hookups, water, and sometimes, compressed air and natural gas. Meeting or breakout rooms -intended for small groups, individual rooms can vary in size from 500 to 2,000 or more square feet. They are often divisible into smaller units to provide maximum flexibility. Meeting rooms are characteristically carpeted and have a high level of finish. Most meeting spaces have flat floors and no fixed seating so that they can be configured for an assortment of meeting styles. Meeting rooms offer variable lighting setups, sound attenuation, and in newer facilities, access to advanced telecommunications technology. Some meeting rooms are designed exclusively for presentations and may have fixed tiered theater style seating and video projection capabilities. Boardrooms are elegant meeting rooms with the permanent installation of a conference table. I're-function space -space located just outside of or adjacent to the event space. Pre-function areas support the circulation of pedestrian traffic through the facility, serve as registration areas, and are essential to the control of access to event spaces. Terraces or other signature function spaces can supplement the typical lobby areas. li~pes of ilneetings and The meetings industry includes several types of events, from large trade and (facility Needs exhibition events to conferences and corporate meetings. Each type of event has unique facility needs. Certain events require large amounts of contiguous space and others require several smaller meeting rooms. A single event may use different types of space, including exhibit halls, banquet rooms, breakout meeting rooms, and theater seating. Event facilities need to offer the proportions of different types of space that are appropriate for their markets. Table 3-1 summarizes the key attributes of various types of meetings, including facility requirements. HVS Convention, Sports £~ Entertainment DRAFT Vai! Convention Cenfer Feasibility Study Industry Trends 3-1 3. Conventoon / Meeting Industry Trends The purpose of this section is to describe the convention and ,.meeting industry and analyze trends in the number of events, attendance, and supply of meeting and exposition facilities. The definitions provided herein will aid in understanding the market analysis, and the overview of industry trends will aid in assessing the demand potential for a conference center in Vail. The section concludes with an assessment of the particular implications of these trends for the development of a new hotel conference center in Vail. Facility Characteristics In order to properly accommodate a wide range of events, a conference center faality requires meeting space -divided into both general session space and meeting /breakout spaces -capable of supporting conferences and meetings. Ideally, conference centers also provide pre-function space suitable for attendee registration, kitchen facilities for event catering and presentation equipment suitable for both large group and breakout sessions. The main meeting space should be divisible in order to support simultaneous events. • Main Ballroom /Exhibit space - in conference centers the main ballroom space typically serves as both a large banquet area and an area for exhibits. In order to serve both roles the space requires high ceilings and clear spans with limited numbers of support columns in the room.. The quality level of this space must be sufficient to be appropriate for formal dinners and social functions, but also needs to avoid materials or fixtures that are easily damaged by the level of utilization associated with exhibits. The space should have durable carpeting and appear like a true ballroom rather than an exhibit hall. The space should be divisible with soundproof movable walls. This space does not need to have direct access to loading docks, but such access should be convenient to accommodate larger exhibits, with high doors that allow easy loading. Sound attenuation and sophisticated sound systems are also important features of a ballroom. Close proximity to kitchen facilities is vital for the efficient delivery of food service. Utilities for exhibition booths are usually provided from boxes in the floor or dropped from the ceilings. Utilities typically HVS Convention, Sports & Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-22 reputation and appeal of Vail as a premiere resort destination makes it attractive to national association and corporate events. This appeal extends not only to the ski season, but also to the summer. The level of air service available in the overall area is significant when one considers the options at both Eagle County Airport and DIA. However, the low level of air service to Eagle County Airport in the non-ski seasons and the distance of Vail from DIA present a challenge in respect to transportation. Comparisons to other mountain resorts and their relative access to transportation are important for evaluating Vail's relative demand potential. l:n addition; surveys and focus groups will shed additional light on the perceptions of event planners regarding Vail's accessibility and the extent to which the Town can augment both its real and perceived accessibility. Review of lost business data reveals there is a significant volume .of events that have considered coming to Vail, but have elected to go elsewhere. The lack of a larger event facility and limitations in the overall supply of function space plays a leading role in the inability of Vail to attract such events, given the average number of attendees at 763 is much larger than any existing conference facility can accommodate. HVS Convention, Sports ~ Entertainment DRAFT Vai! Conference Center Business Plan Mnrket Overview 2-21 that these lodgers stay in the market for one night less than the number of days in the event. The intent of this room night estimate is to get a general sense of the overall volume of room nights and to determine whether the lost events in the 500 to 2,000 attendee range are longer on average, and thus will generate more room nights per attendee, than smaller events. Figure 2-5 shows the distribution of room nights by the same attendance categories as the pervious chant on number of events. Figure 2-5 Number of Lost Room Nights by Category of Attendance IOU,000 133 565 140,000 , 120,000 100,000 60,000 56,450 60,000 50,689 49,425 40,000 19,275 20,000 0 < 500 500 W 999 1,000 to 1,499 1,500 b 2,000 > 2,000 Sources: Vail Valley Chamber d Tourism Bureau Among the total of 309,404 lost room nights 209,290, or 68 percent of the overall amount come from events of between 500 and 2,000 attendees, indicating that the average event length is slightly longer for events in this size range than the overall average. Implications of the The review of Vail's tourist appeal and supporting visitor infrastructure, Market Overview including its hotel supply and year-round supply of attractions, reveals highly positive attributes in respect to the demand potential for conference center events. Vail has a significant number of visitor attractions and amenities that lend themselves to attracting and bringing back out-of-town event attendees. Vail also has a significant number of full-service hotel and condominium praperties for a community of its size, making it attractive to groups seeking to host large conferences. The Vail economy, as it is largely based upon tourism, lacks a traditional corporate presence. However, its proximity to Denver, the State's economic hub, helps support demand for local and state corporate events. The national HVS Convention, Sports £+ Entertainment DRAFT Uail Conference Center Business Plan Mar)cet Overview 2-20 Attendees The WCTB also compiles data on the number of attendees at these potential events for Vail. These events accounted for more than 101,000 attendees, an average of 763 attendees per event. National events account for 82 percent of the total attendees to events that inquired as to the possibility of hosting a meeting in Vail. The high level of interest among National events is indicative of the strength of the reputation of Vail as a resort destination. Figure 2-4 shows the distribution of events by size category in 500 attendee increments. Figure 2-4 ~um~er of i.ost Events by Category o4 Attendance ro sa so so az ao 30 20 10 5 4 0 < 500 500 b 999 1,0110 to 7,499 1,500 [0 2,0~ > 2,000 sources: van valley CAamber a rounsm Bureau Among the lost events in the WCTB data, .65 percent had between 500 and 2,000 attendees. It is unlikely that the majority of the lost room nights in the under 500 category were lost because of the fact that there was not a facility larger enough for them. The WCTB does not track the reason(s) for losing individual events so there is no way to determine definitively why these lost events elected to go elsewhere. In the case of those with 500 or fewer attendees, it is unlikely that facility size was the primary factor. However, it is likely that many of these events were lost because there either wasn't a single facility available with a sufficient number of breakout rooms or because of date conflicts. Room Nights The WCTB database does not include estimates of room nights per event. HVS estimated the number of room nights for the events in the lost business data by assuming that 90 percent of the attendees stay in lodging units and HVS Convention, Sports £> Entertainment DRAFT Uail Conference Center Business Plan Market Overview 2-19 Note that the volume of lost business in the Vail market peaks in the summer and fall months -the traditional off-peak tourism season in Vail. This seasonality reflects the WCTB's focus on attracting events in the periods outside- the busy ski season. Other contributing factors include the price- sensitivity of groups relative. to the high ski season room rates, the high overall volume of group events that occur in the summer and fall, and the desire to attend a well known resort destination at a time when they will not be competing with large crowds for lodging; restaurants, and recreational activities. HVS analyzed the WCTB data to determine the various types of groups that inquired about hosting a meeting in Vail. HVS broke the groups into four categories: Corporate, Association, Medical and Other. Figure 2-3 shows the distribution of events by type for both national and state events. Figure 2-3 .. Breakout of Event Types for National and State Events National Other 6 % Association Medical 31% 16% :;~;: }7 Corporate 47% Source: Vai! CVB Corporate events make up the largest share of potential national events, accounting for 47 percent of the national groups that expressed interest in Vail. Among state events, corporate groups accounted for far less of the total, at 4 percent. The largest share of potential groups among the state events was association events, which represents 39 percent of the total. Medical groups made up 19 percent. Other, which includes smaller events such as weddings, reunions and fraternal/social events, amounted to 38 percent of the state groups expressing interest in Vail. state Association 39°h Corporate ':F:' 4 Other Medical 19% Source: Vail CVB Among the four categories of groups, national-scale events accounted for at least 70 percent of events with the exception of the other category. The other category is comprised of primarily state events at 67 percent of the total. HVS Convention, Sports £r Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-18 service to is rather significant. However, the level of passengers and air service is lowest during the months when Vail is most interested in attracting group demand-the shoulder and summer periods. The Town of Vail and Vail Resorts are implementing programs designed to help increase the level of air service in the non-ski season. One method is to guarantee the airlines a certain minimum level of utilization in exchange for increased service. For instance, in fiscal year 2000-O1 Vail Resorts guaranteed a minimum level of revenue for flights in and out of five different destinations. A similar program led to the addition of a summer flight to Dallas in 2003. The level of utilization on this flight exceeded expectations and officials at Eagle County Airport anticipate that the time period for which this flight operates next summer will increase. Additional such programs and efforts would enhance the accessibility of Vail in the non-ski seasons and help provide additional transportation options for potential conference center events. dos4 ~usisaess The Vail Valley Chamber & Tourism Bureau (WCTB) tracks a list of potential events that inquired about coming to Vail but were unable to due to a lack of adequate facilities. Table 2-12 shows the number of groups, by month. Fable 2-12 dumber of potential Events, by Month ~~ 30 29 26 21 20 16 15 13 11 13 10 9 6 8 6 5 6 0 0 ti c1 ~ c'~ i e t1 ~ t t c ~ ~~Ja QO~~ ~a p~ era y>° ~~ P~AJ `0~'d° O°~~ ,0~`~p F~ 5~ P° O~ Source: Vail Valley Chamber 6 Tourism Bureau HVS Convention, Sports Ef Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-17 Table 2-11 shows historical enplaned passengers and aircraft departures from 2000 through August of 2003. Table 2-11 Airport Utilization Data. Year Enplanement:% Change 20031 146,642 -- 2002 171,182 0.8% 2001 169,826 -10.0% 2000 188,745 8.9% ' Through August 2003 Source: Eagle County Airport The Vail Airport level of utilization fell off in 2001, likely due to a combination of the slowing U.S. national economy and the September 11, 2001 terrorist attacks. The enplaned passengers are highly seasonal, with large numbers in the ski season and very limited numbers during the rest of the year, as shown in Figure 2-2. Figure 2-2 Eagle County Airport Average Enplaned Passengers by Month-2000 Through August 2003 bU,UVU 62,503 50,000 41 350 42,633 40,000 30,000 954 16 20,000 , 10,000 946 1,500 3,012 3,133 1,593 1,264 1,615 0 )'~~ F~~~ ~~~ ~i~ psi )JCO )~~~ PJ~~~ oQ~~~` o~a~ o',°~,~ 0~,~ y 2 O Source: Eagle CountyAirporf The months of December through March account for 87 percent of the total annual passengers who fly through Eagle County Airport. Eagle County Airport also tracks total airlift capacity by fiscal year. Between fiscal year 1998- 99 and 2001-02 the average annual total airlift capacity, total number of seats on flights, was 269,203. Relative to other resort markets, this level of air HVS Convention, Sports & Entertainment DRAFT Vail Conference Center Business Plan Market Overoiew 2-16 Vail has no institutions of higher learning. All of the educational institutions listed here are over an hour from the Vail market, with most of them exceeding two hours in driving time from the Vail market. These institutions have somewhat moderate enrollment, with none over 30,000 students. Given the distance between Vail and these educational institutions it appears unlikely that many opportunities exist for potential event demand in the form of educational conferences, seminars, and tradeshows in Vail. Alt Service The County of Eagle owns Eagle County Airport and the Eagle County Air Terminal Corporation operates it. The airport is located approximately 45 minutes from Vail and 2.5 hours from Denver. The airport has five gates and one 8,000-foot runway. Table X10 shows a list of the commercial airlines serving the Vail Airport and the non-stop destinations they offer from Vail by season. Tahle 2-90 airlines Searing !fail and Their Non-Stop Destinations and Number otf Weekly Round-Trip flights Airline Non-Stop Destinations (# of Weekly Round-Trip Flights) Ski Season : ' United Denver (42) American Dallas (17) Chicago (S) Miami (1) Newark (7) New York (1) Los Angeles (5) Continental Houston (7) Newark (7) Delta Atlanta (7) Cincinnati (1) Northwest Minneapolis (7) US Airways Philadelphia (2) Charlotte (1) Summer United Denver (14) American Dallas (7) Shoulder United Denver (14) Source: Eagle CountyAirpoR Currently, the primary gaps in non-stop service are the Northwest and New England. The level of air service is drastically different in the ski and non-ski seasons. Ski season air service includes 113 weekly round-trip flights, while non-ski season service includes only 14 round-trip flights between Vail and Denver and seven between Vail and Dallas. HVS Convention, Sports & Entertainment DRAFT Uail Conference Center Business Plan Market Overview 2-15 Table 2-8 Labor Market Data Year Labor Force Eagle Summit County County Total Employment Eagle Summit County County Total Unemployment Eagle Summit County County Percent Unemployed Eagle Summit County County Colorado Percent Unemployed US Percent Unemployed 1994 16,316 10,567 15,723 10,262 593 305 3.6% 2.9% 4.2% 6.1 % 1995 17,452 11,288 16,884 10,955 568 333 3.3% 3.8% 4.2% 5.6% 1996 17,946 11,502 17,393 11,2?_1 553 281 3.1% 2.4% 4.2% 5.4% 1997 19,127 12,106 18,603 11,845 524 261 2.7% 2.2% 3.3% 4.9% 1998 20,501 12,494 19,851 12,164 650 330 3.2% 2.6% 3.8% 4.5% 1999 20,778 12,780 20,257 .12,500 521 280 2.5% 2.2% 2.9% 4.2% 2000 21,299 13,188 20,840 12,91.0 459 268 2.2% 2.0% 2.8% 4.0% 2001 21,502 13,296 20,894 12,937 608 359 2.8% 2.7% 3.7% 4.6% 2002 21,455 13,274 20,507 12,697 948 577 4.4% 4.3% 5.7% 5.8% 2003' 21.,920 13,167 20,963 12,980 957 637 4.4% 4.7% 5.7% 6.1% Average 19,830 12,366 19,192 12,048 638 363 3.2% 3.0% 4.1% 5.1% 'Year-to~date ligures through August for Eagle and Summrt Counties, through September for State and National figures. Source: Bureau of Labor Statistics The unemployment rate in Eagle and Summit Counties has been consistently below both the. State and National rates. Through September of 2003, the unemployment rate in Eagle County has remained stable as compared to 2002, while the unemployment rate in Summit County has increased slightly over the same time period. Colleges and The presence of institutions of higher learning in an area can generate Universities demand for educational-related seminars, conferences, and other events. The degree to which. these colleges and universities generate demand for a conference center depends upon the number, size, and character of the institutions and whether they have their own conference/meeting facilities. Table 2-9 shows some Colorado colleges and universities, their locations, enrollments, and distance and drive time from Vail. Table 2-8 Colleges and Universities Academic Institutions Location Enrollment Distance Drive Time Colorado Mountain College Glenwood Springs 3,400 61 1:01 Univ. of Colorado at Boulder Boulder 25,355 108 2:06 Colorado State University Fort Collins 22,684 157 2:39 Aims Community College Gn;eley 3,722 156 2:41 University of Northern Colorado Greeley 10,983 156 2:41 Western State College Colorado Gunnison 2,199 161 3:21 Univ. of Colorado at Colorado Springs Colorado Springs 4,953 164 2:41 • Sources: Gry-Oatacrom and Mapquestcom HVS Convention, Sports £> Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-14 'Fable 2-7 largest employers 6n ®enver Employer # of Employees Quest Communications 61,000 First Data Corp. 29,000 Teletech Holdings Inc. 27,000 United GlobalCom Inc. 15,700 Mail-Well lnc. 13,150 Centura Health 12,377 Safeway 12,000 HealthOne 9,285 United Airlines 7,700 Wells Fargo Bank West N.A. 6,000 Coors Brewing Co. 3,400 Exempla Healthcare 5,420 Kaiser Permanente 4,141 Echostar Communications Copr. 4,000 Source: Denver Business Journal Among the largest employers in Denver are telecommunications firms and other technology related businesses. Healthcare companies also employ a large number of Denver-area workers. The technology and healthcare sectors both generate significant levels of demand for conference space. The healthcare sector is a leading source of continuing education events, which provide a large portion of the existing group event demand in Vail. ~mploymenQ Employment rates are often a good indicator of the overall strength of a market's economy. Table 2-8 shows labor market data for the Eagle and Summit Counties and the unemployment rates of the State and the US. HVS Convention, Sports £> Entertainment DRAFT Vail Conference Center Business Plan Market Overview Z-13 Teva Mountain Games The nation's largest competition of outdoor athletic events, featuring events such as freestyle and extreme kayaking, paddlecross, bouldering, speed and dyno climbing, mountain bike trials, criterion and cross country racing and mountain trail running. Vail America Days This is Vail's annual four-day event to celebrate the country's Independence Day with a series of attractions. Events and attractions include live music, dancing and a parade. Oktoberfest A two-weekend festival celebrating the Vail Valley's beer-making heritage. Held every September, the celebration includes a sampling of authentic beers, Bavarian cuisine, and live entertainment. Beaver Creek Culinary Festival An outdoor festival that includes culinary demonstrations and competitions, tastings from local restaurants, children's activities and entertainment. Area Businesses The density and character of the area's business base largely determines the level of demand for corporate events such as training seminars, shareholder meetings, sales meetings, awards banquets, and other similar events. Some of these events, particularly training seminars, shareholder meetings, and employee appreciation events can attract out-of-town visitors and associated spending. As a leisure and resort community, Vail lacks a sizeable commercial presence. The closest major urban center with a large commercial employment sector is Denver. Table 2-7 shows the largest employers in Denver. HVS Convention, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-12 The resort nature of the Vail market makes it an attractive location for both event planners and meeting and conference attendees. While skiing and other wintertime recreational activities provide most of the attraction to the area for event planners and attendees, a wide range of summertime events are also available to event attendees. Visitor Attractions Event attendees at conference facilities are often interested in more than simply going to the scheduled events at the facility. Many conferences, trade shows, meetings, and corporate events provide attendees with opportunities to socialize and experience the local attractions that the area surrounding the event site and the host city or town has to offer. One factor event planners consider is the availability of entertainment for their attendees in the afternoon or evening after the planned activities end. In addition to these unique attractions, the accessibility of other activities such as golf is also an important factor that event planners consider. The beautiful mountain setting the Vail enjoys provides access to a wide range of outdoor and scenic activities. Gore Range Riational Science School This year-round school, established as anon-profit organization in 1998, offers educational classes, seminars and speakers for youth groups and adults. Also available are guided snowshoeing and hiking tours. Art lAlalEcs Visitors to Vail can take part in guided, 90-minute tours of Vail's art galleries. Betty Ford Alpine Gardens Established in 1985, the Betty Ford Alpine Gardens boast four botanical gardens and is the highest botanic garden in the world. More than 600,000 visitors tour the gardens each year. Gerald R. Ford Amphitheatre This outdoor amphitheater, named after former President Gerald Ford, hosts a number of summer concerts and performances each year. HVS Convention, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Market Overuiem 2-11 and over 70 percent of skiing days are sunny. Average daily maximum temperatures are 40.7 degrees in winter, 75.3 degrees in summer, and 55.9 degrees in fall. With 1,536,024 skier visits, Vail recorded the highest number of skier visits in the state of Colorado during the 2001/02 ski season. Over the seventeen-year historical period ending in 2001/02, Vail recorded the highest number of skier visits in every season with the exception of the 1998/99 and 1999/00 seasons, when Breckenridge surpassed the resort's performance. While Vail attracts a significant amount of foreign visitors, Breckenridge attracts more local skiers due in part to its closer proximity to the Denver metropolitan area. Since 1985, Vail Associates, Inc. has undertaken an extensive mountain improvement and expansion program. Vail Associates, Inc. is constantly improving and upgrading the facilities on the mountain. In 2002/03, three new ski lifts will open in the mountains Blue Sky Basin area, further increasing the mountain's uphill capacity. Other Nearby Skiing Nearby Beaver Creek Ski Resort offers a unique mix of skiing for beginners and experts alike on 1,625 acres accessed by fourteen chairlifts in one of Colorado's most secluded valleys. Twenty-seven percent of the terrain is designated for the advanced skier, while 39 percent appeals to the intermediate and 34 percent to the beginner skier. Summit elevation is 11,440 feet and an average of 330 inches of snowfall occurs each year. In the 1996/97 ski season, Arrowhead, Bachelor Gulch, and Beaver Creek merged to become one large resort. A $68-million mountain improvement project made skiing in Beaver Creek more competitive with neighboring Vail. Skiers at Beaver Creek enjoy more skiing time due to six express quad chairlifts. McCoy Park is a specially designated area for cross-country skiing only, and there are also specially designated family areas for those who wish to set their own pace and ski in a relaxed atmosphere. Other Activities & Attractions Summertime events and attractions are also plentiful in the Vail region. Mountain biking, hiking, golfing, whitewater rafting, camping, and fishing are frequent activities by summertime visitors to the area. Summer concerts, festivals, museums, and art galleries are also appealing summertime attractions. HVS Convention, Sports fr Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-10 Management reports a highly seasonal pattern of existing group demand. During the ski season group demand generally only accounts for about 20 percent of overall room nights. Virtually all group demand in the winter is corporate groups. Management believes the proposed conference center would generate much needed room demand in the shoulder seasons and Monday to Wednesdays throughout the year when tourist demand is relatively low. Sonnenalp The Sonnenalp is a high-end, boutique European-style mountain resort located in Vail Village. The property has 90 guest rooms that are all suites. Plans are in place to add 40 more rooms by Fall 2004. The facility offers a total of 4,820 square feet of function space. The largest single ballroom space, the Grand Bavaria, is 4,265 square feet. The on-site spa faalities include heated indoor and outdoor pools, whirlpools, a sauna, and other amenities. The Sonnenalp does very little group business in the ski season because its room rates are typically $700 and up during this period. Management indicates that it devotes as many as half its rooms to group business in the summer and will devote the entire inventory to groups in the shoulder seasons, although demand for groups during this time of the yeaz has been very low in recent years. ACCessibilify, Vail is a year-round resort community located in the northwest mountainous ~haeactee, ~~d quadrant of the state of Colorado, 100 miles west of the state's capital city of ~neieonmeot foe ~der~f Denver, which is the marketing, transportation, and distribution center of the attendees Rocky Mountains. The town of Vail is located between two ranges of heavily wooded mountains on the north and south sides of Interstate 70. The town is situated 8,200 feet above sea level. Skiing at Vail Vail is acknowledged as one of the leaders in North America's ski industry and with 5,289 skiable acres, is among the lazgest domestic ski resorts. Furthermore, Vail is one of the largest single-mountain ski areas in North America. Vail also boasts the largest number of high-speed chairlifts in the world, enabling skiers to spend more time skiing and less time in lift lines. The ski slopes on Vail Mountain have a vertical drop of 3,450 feet from the summit to the base of the mountain. The mountain receives an average of 335 inches of snowfall each year and maintains an average depth of 60 to 110 inches of snow during the winter months. Snowfall at this high altitude is dry HVS Convention, Sports £1 Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-9 opened in 2003 and offers a 21,000-square-foot spa, ski-in/ski-out convenience and 36 holes of nearby golf. The spa has 19 different treatment rooms. The overall development includes a. number of large private residences. The facility has a little over 14,000 square feet of indoor function space. The largest single space is the Ritz-Carlton Ballroom with 7,200 square feet of space. The decor in the function spaces is high end and represents some of the highest- quality space in the Valley. Vail Marriott Mountain Resort & Spa The Vail Marriott Mountain Resort & Spa, which was purchased by Vail Resorts, recently underwent,a major renovation. The renovation significantly upgraded the quality of both the guest rooms and the function space. The resort has approximately 13,700 square feet of function space and its grand ballroom offers close to 8,300 square feet of space. The maximum size group that the hotel can accommodate for a meet and eat type of event is approximately 500 people. - Management reports that the property has an overall group to leisure mix of about 55 / 45. In the peak ski season the share of leisure demand grows to between 60 and 65 percent. Group demand in the summer is approximately 70 percent of total room nights. Continuing education represents the largest share of group demand by type of event. The resort accommodates most of its association business in the spring and fall when room rates are at their lowest points. Overall, about 30 percent of group business comes from the front range, primarily from Denver-based companies. Lodge at Vail The Lodge at Vail has a total of 7,433 square feet of function space and 165 lodging units, of which 80 are traditional hotel rooms and the rest are individually owned condo units. The largest single event space at the facility is the International Room, which offers 5,424 square feet when all divisible walls are opened. The facility generally lack breakout meeting rooms and relies on the divisibility of its International Room when events need smaller spaces. The largest size group the facility can accommodate is approximately 120 room nights, as anything larger typically exceeds the capacity of their function space an.d/or exceeds the number of rooms they can assemble for a room block. The non-uniformity of the condo rooms at the facility presents problems for incentive groups that look for facilities that can offer each of their attendees comparable rooms. HVS Convention, Sports & Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-8 Vail Cascade Resort and Spa The Vail Cascade Resort and Spa is located in the Cascade Village area of Vail. The facility provides ski-in/ski-out access. The resort offers function space and a wide variety of lodging options including suites, condos, homes, and hotel rooms. The conference center has approximately 21,500 square feet of space divisible into 17 separate rooms. The facility also has the Gore Range Exhibit Hall, which is a converted indoor tennis facility that measures 19,234 square feet. The .Centennial Ballroom, the largest purpose-built event space, has 5,940 square feet of function space. The resort has 328 lodging rooms and suites in addition to condominiums and private residences. The property includes a 78,000 square foot spa and club that includes a swimming pool, basketball court, tennis, racquetball and squash courts, and a retail shop. Other amenities include a movie theater, restaurant, and general store. According to interviews with management, the facility typically does 65 percent of its room nights in the group segment. However, the downturn in the economy has lowered the share of group business to below 60 percent. Group demand is roughly composed of 65 percent corporate, 25 percent association, and 10 percent SMERFE (social, military, educational, religious, fraternal, and entertainment). Approximately 35 percent of the group demand at the property originates in Colorado, with Denver serving as the primary feeder market. Park Hyatt Beaver Creek The Park Hyatt Beaver Creek is located 20 miles from Eagle County Airport and 10 minutes from Vail. The Hyatt has a total of 274 hotel rooms that include standard guest rooms, panorama kings, and executive kings. The ski- in/ski-out resort also offers numerous year-round activities and an on-site spa. The facility offers a total of over 16,000 square feet of function space and the largest single dedicated ballroom space among resort hotels in the Vail Valley at 8,600 square feet. Ritz-Cazlton Bachelor Gulch The Ritz-Carlton Bachelor Gulch, located in the Beaver Creek resort area, has 237 lodging rooms. The resort offers panoramic views from 90 percent of guestrooms and suites. The room choices include 29 one, two or three bedroom suites, 102 rooms offering private balconies, 77 guestrooms featuring fireplaces, 49 with window seats and four suites offering windows near the bathtub providing views of the surrounding mountains. The hotel HVS Convention, Sports £a Entertainment DRAFT flail Conference Center Business Plan Market Overview 2-7 may change as a result of the development review process. Some of the rooms may drop out of the lodging pool during the construction process. Existing Hotel The Vail community does not currently have a true conference center facility conference Centers that features a large multipurpose exhibit/ballroom space and breakout meeting space appropriate for conferences and other events in excess of 500 people. Vail does have several resort hotels that feature meeting space for in- house group events. Table 2-6 summarizes selected lodging facilities in Vail that feature on-site meeting space. Table 2-6 Selected Hotels with Meeting Space in Vail SF Total Maximum Total SF Largest Max. Single FacBity Location Lodging Function # of Meeting Ballroom Room Rooms , Space Function Room Space Banquet Rooms Capacity Capacity Vail Cascade Resort and Spa Vail 292 21,555 17 1,480 5,940 490 Park Hyatt Beaver Creek Beaver Creek 274 16,350 15 1,120 8,631 710 Ritz-Carlton Bachelor Gulch 237 14,040 12 960 7,200 600 Vafl Marriott Mountain Resort S SPA Vail 344 13,736 16 940 8,286 690 Manor Vail Resort Vail 144 8,710 7 600 3,496 290 Lodge at Vail Vail 165 7,433 7 510 5,424 450 Evergreen Lodge Varl 128 5,936 5 410 1,942 160 Lion Square Lodge Vail 118 5,380 5 370 3,070 250 Sonnenalp Vail 90 4,820 7 330 4,265 350 ~ FxcWdes prefunction space, terraces, cu[door space, and halhvays Sources: Respecllve faciltties and HVS Four Vail hotel properties have more than 10,000 square-feet of meeting space, but none have a single ballroom space in excess of 8,700 square feet. Of the hotels presented in Table ~6, several have large outdoor areas set aside for outdoor events and meetings. Those spaces were not included in this summary of meeting space at lodging properties. In addition, the Vail Cascade has a tennis court it uses as an exhibit hall type space for certain events, but this space was not included since it isn't purpose built function space comparable to the other spaces. . The following text describes the Vail facilities with the largest amounts of function space and provides information on their size and capacity, as well as the overall character of each facility. HVS Convention, Sports b Entertainment DRAFT Uail Conference Cenfer Business Plan Market Overoiew 2-6 rental doesn't exceed 31 days and the entire unit is rented to the same guests for the duration of the rental period. Condominium hotels are defined as hotel buildings with a portion of rooms set aside for individual ownership. A condominium hotel may often resemble a traditional hotel in its manner of appearance, marketing and management. Fractional Fee/Timeshare units aze defined as properties shared among several people, corporations, or partnerships. The use of the property by any individual at the exclusion of others is determined in advance by contract. Six Vail properties currently fit this description. Vail Resorts has joined the Vail Valley Chamber & Tourism Bureau to launch the Lodging Quality Initiative. This new program will provide guests with more detailed information on lodging options and will rate the existing inventory in the azea. Proposed Vail Lodging Development The Town of Vail has received a number of applications and proposals for the construction of additional lodging faalities. Table 2-5 shows the location and type of lodging proposals Vail has recently received, as well as the number of units proposed at each location and the total net changes in rooms. Table 2-5 Proposed Lodging Development in Vail Development Dwelling Condominium Fractional Employee Accom- Total Net Location Timeshare Housing Units modation Change Core Site 14 125 - (90) 23 72 North Day Lot -- -- -- 90 -- 90 West Day Lot 125 44 - -- 46 215 Four Seasons 20 -- 20 - - 40 Sonnenalp 9 -- 14 -- (24) (1) Tivoli 1 -- - - 11 12 Front Door 13 -- _ __ 2 15 WI 39 -- 40 -- 24 103 Total 221 169 74 0 82 546 Source: Vail Community Development Dept. These numbers are shown as reported during the development review process of these proposals. The number of units and style of development HVS Convention, Sports ff Entertainment DRAFT Vail Conference Center Business Plan Mnrket Overview 2-5 based meeting and conference facilities, which take advantage of skiing and proximity to the Rocky Mountains. Lodging Types and Definitions The quality of hotel properties accessible to conference facilities and the quantity of roon-s are key factors in the demand potential for events that attract out-of-town attendees. Important questions event planners consider in potential venues are "How many hotel rooms are located close by?" and "Is there a headquarters hotel attached to the venue?" Table 2-4 shows the kinds of guest lodging available in Vail and the number of rooms by type. Table 2-4 Vail Lodging Supply by Type of Unit Lodging Type No. of Units Accommodation 1,588 Dwelling Units 704 , Condominium Hotel 491 Fractional FeelTmeshare 312 Total 3,095 Source: Vail Community Development Dept The number of lodging units in a market like Vail that depends heavily on condominium units is a moving target as individually owned units are moved in and out of the rental pool. The Vail Valley Chamber & Tourism Bureau (VVTCB) assisted the Town of Vail in developing the preceding supply figures. T'he bureau estimates that the total number of available lodging units in Vail ranges between 3,095 and 3,400. The Town uses the following definitions to classify lodging properties. Accommodation units are considered to be traditional hotel/motel style rooms, and are available on a year-round basis. According to Vail regulations, an accommodation cannot be individually owned. Dwelling units are defined as units that may be individually owned and can exist in many different forms. The term "dwelling units" may be used to define single-family residences, duplexes, and multiple family buildings. A dwelling unit may be rented on a short-term basis provided that the period of HVS Convention, Sports & Entertainment DRAFT Uail Conference Center Business Plan Market Overview 2-4 Table 2-3 Population, Distance, and Drive Time from Vaii, C® iVlarket NiSA 2000 Miles from Drive Time Population Vail from Vail Colorado Vail° 4,531 na na Denver 2,581,506 97. 1:44 Boulder 291,288 108 2:06 Fart Collins 251,494 157 2:39 Greeley 180,936 156 2:41 Pueblo 141,472 207 3:19 Grand Junction 116,255 148 2:25 0 ut-of-State Albuquerque 712,738 380 7:47 Amarillo 217,858 527 9:26 Lubbock 242,628 651 11:47 Oklahoma City 1,083,346 773 11:37 "Population re/lects U.S. Census 2000 count. Sources: Census Bureau 2000 and Mapquest After Denver, the State's largest market, the next five largest markets are all within a three and a half hour drive or less. Vail's proximity to the State's major population centers makes it an appealing drive-in event destination. Outside the State, the closest major market is Albuquerque, which is a drive of nearly eight hours. ~onfea'ence Characteristics of the local area influence the ability of a conference center Destination facility to attract attendees to its events, particularly in regard to those that Dharacteristics attract attendees from out of town. This section details the mazket's hotel supply, visitor attractions, and overall character and focuses on elements particularly relevant to the attractiveness of the area as a conference destination. Regional Destination Appeal The Rocky Mountains and a generally comfortable climate make Colorado an attractive visitor destination. According to the Colorado Office of Economic Development and International Trade, Colorado welcomed 26.2 million domestic visitors on overnight trips in 2002. Related marketing studies show that Colorado ranks fifth in the nation behind Hawaii, Florida, California, and Alaska in States people would most like to visit. Colorado's attractiveness as a vacation destination provides opportunities for the development of resort- HVS Convention, Sports E> Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-3 temporarily closed. Table 2-2 shows the number of times Interstate-70 was closed between Denver and Vail and the total closure time by fiscal year starting with 1998/99. Table 2-2 Data on Interstate-70 Closures by Fiscal Year Year No. of Total Time Closed Closures 1998/99 7 6 hrs 27 min 1999/20 22 46 hrs 36 min 2000/01 33 27 hrs 13 min 2001/02 16 44 hrs 34 min 2002/03' 45 560 hrs 21 min Average 99-02 19.5 31 hrs 13 min ~ 494 hrs 16 min for March 03 bliaard Source: Colorado Department of Transparta6on Fiscal year 2002/2003 included a significant blizzard in March 2003 that had the highway closed for close to 500 hours just for that one storm. Excluding 2002/03 and this remarkable snow event, the average between 1998/99 and 2001/02 was, 19.5 closures for a total of 31 hours and 13 minutes. If such a closure were to occur during the primary arrival time for conference center event attendees it could cause considerable difficulties for an event. The typical overall amount of closure time does not suggest that weather-related closures will present a major obstacle for conference center operations, but wazrants consideration in assessing the perceptions of events planners when considering the potential challenges of getting attendees to and from events. Table 2-3 shows the population of metropolitan statistical areas in Colorado and nearby states and the distance anti estimated driving time between each of them and Vail. FfVS Convention, Sports & Entertainment DRAFT Vail Conference Center Business Plan Market Overview 2-2 Peoximity to Potential A key factor for regional and state markets in attracting events and attendees event Attendees is their location and overall accessibility. From the perspective of State events, Vail has the advantage of being fairly centrally located in Colorado and benefiting from good interstate highway access. Figure 2-1 shows a map of Vail and its surrounding area. figure 2-1 Map of 4lail and its Surrounding Area - C APL c' •,~., ~n a t~, _~. •..F~o _ - Steamba~at"Spnngs~ ~r?oc~r ____ ~ ~ 4 _ Afeun;~i.~~ ~~6lnofaur ,r~~crr ~ ha'ro.ra:Pa~.~ a ~1eeFer ~u,YC~ `u.r:rnml ng •~,!u cl ,'Jar ~n~I ' r est. ~~ iti~~ai 0r7 ry~~~~. _~'Tniucii Sn~c ~ ~' CIff~T:ia~a ~ 4~~ Glerr~oodpnngs - - ~. ~ ~ : ~. f~ ~ ~`Leadlill ,}e-- ~~~Fry_u tay~ P.spen I ~. I r171,~rai" Grand Junction ~ ~ - F - C ~s~s , _. . ~; ~1 ~ N,z?ro ~ rr -`Delta :~b.~esr F1 ~ •Cnp .l ~FJ Fm a tNellln tcn " ~` 3i 9 (v~c~d rt Collins r e ey Fer, hlorgan~°~- w~zne;burg E?wGF S`" "r s, `~~Q, Castle P.ocN A r~~~~~imla ~~ - := r ~ar'sitou Springs '_.CrA~ , --r Gunms~nr - ~ alida i2dQ3 : ert.Snc .arrj~.AGJm «r~:. ~ - - Lan n C i Vail is not located at the geographic center of the State, but its highway accessibility makes it relatively convenient to other major population centers within the state. Colorado's primary east-west highway, Interstate-70, runs through Vail and links it to Interstate 25 and the Denver metropolitan area. Interstate 70 crosses the north-central section of Colorado, providing excellent highway access through the mountainous regions of the state. Driving time from Denver to Vail is approximately two hours and 20 minutes via the 1.75- mile Eisenhower Tunnel underlying the 11,992-foot Loveland Pass. The tunnel has made the automotive trip to Vail much safer, especially during the winter months. Opened in 1973, the tunnel took over three years to construct. Interstate-70 is Vail's sole highway-grade link to the rest of the State. Winter weather can have a significant affect on the ease of highway travel in Colorado. In periods of intense snowfall Interstate-70 is sometimes HVS Convention, Sports fi Entertainment DRAFT Var1 Conference Center Business Plan Market Overview 2-1 2. Marked Overview Characteristics of the local area surrounding a new conference center in Vail will influence the ability of the facility to attract attendees to its events, particularly in regard to those events that attract attendees from out of town. This section focuses on some elements particularly important to the attractiveness of Vail as an event destination. Population The Town of Vail, Colorado is located in Eagle County. Eagle County's population increased at a high rate between 1990 and 2000, reaching. an estimated 42,027 in 2000. Table 2-1 shows estimated historical and forecasted future population for the State of Colorado, major metropolitan areas in the State and Eagle and Summit Counties. Table 2-1 Population Estiunates and Forecasts for the State off Colorado and Colorado Metropolitan Statistical Areas Popul allon Avera ge Ann ual Per cent Change Area 1990 1995 2000 2005 2010 2015 2020 2025 90-95 95-00 00-OS OS-15 15-25 State of Colorado 3,304,042 3,811,077 4,327,192 4,717,697 5,131,089 5,567,551 6,009,699 6,463,157 2.9% 2.6% 1.7% 1.7% 1.5% Denver PMSA 1,628,290 1,858,008 2,121,117 2,293,319 2,467,447 2,638,143 2,800,785 2,961,931 2.7% 2.7% 1.6% 1.4% 1.2% Colorado Springs MSA 397,887 469,693 520,248 564,902 608,248 654,484 700,814 745,717 3.4% 2.1% 1.7% 1.5% 1.3% BaulderPMSA 226,014 257,500 292,596 315,011 341,001 368,148 392,720 415,323 2.6% 2.6% 1.5% 1.6% 1.2% Fort Collins MSA 187,081 221,622 253,137 278,605 303,162 327,910 352,529 376,333 3.4% 2.7% 1.9% 1.6% 1.4% Greeley PMSA 131,946 157,173 183,625 217,975 253,667 296,732 346,492 404,596 3.6% 3.2% 3.5% 3.1% 3.1% Pueblo MSA 122,878 130,832 142,054 150,407 159,233 169,652 180,763 191,942 1.3% 1.7% 1.1% 1.2% 1.2% Grand Junction MSA 93,577 105,406 116,998 128,058 141,176 157,1 BO 175,466 194,075 2.4% 2.1 % 1.8% 2.1 % 2.1 % Eagle County 22,118 30,883 42,027 48,781 55,493 62,218 69,091 76,081 6.9% 6.4% 3.0% 2.5% 2.0% SummitCaunty 12,940 18,270 23,705 27,496 31,943 35,921 39,374 42,561 7.1% 5.3% 3.0% 2.7% 1.7% Source: Colorado DepartmentolLocalAHairs Between 1990 and 1995 the populations of both Eagle and Summit Counties increased at a rate well above those of the State of Colorado as whole or any of the Metropolitan Statistical Areas shown in Table 2-1. Growth in the second half of that decade slowed somewhat and projections call for future growth rates in Eagle and Summit Counties to be somewhat greater than the State as a whole: The growth rate of Eagle and Summit Counties is anticipated to nearly double that of Denver beginning in the period between 2000 and 2005. HVS Convention, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Introduction 1 3 estimated the economic and fiscal impact the facility would have on the community. The time, efforts, and direction of the Committee were instrumental in the development of this business plan. HVS Convention, Sports fa Entertainment DRAFT Vail Conference Center Business Plan Introduction 1-2 20,000 square foot ballroom, an additional ice rink facility, and a family recreation center. Summary of ftnalytiCal HVS analyzed the financial feasibility and demand potential for a new Tasks conference center in Vail. The analysis provides a basis for a recommended physical program and for projecting the events, attendance, room nights, and overall economic impact that the new facility would generate. HVS based its recommendations and projections on the following analysis: ^ A Summary of Vail's destination characteristics in terms of its overall tourism infrastructure destination appeal, ^ An industry overview that summarizes relevant trends in the market for events and assesses their implications for facility development in Vail, ^ Comparable resort market and facility analysis that evaluates Vail as an event location relative to a set of other comparable and competing markets, ^ Review of existing hotel-based conference facilities in Vail ^ Surveys of state, regional, and national event planners providing valuable insight into the perceived attractiveness of Vail as a conference destination. ^ Focus groups with national and. state event planners. ^ Analysis of lost business data maintained by the Vail Valley Chamber & Tourism Bureau and interviews with selected event planners #-who have considered bringing events to Vail but have been unable to because of the lack of a true conference center facility.. ^ Interviews with hospitality managers and professionals in Vail with expertise in the market for group events. Each of these analytical tasks is designed to help the Committee identify and approve an appropriate facility program for a new conference center and assess the business case for public involvement in the development, of such a facility. I-IVS assisted the Committee in this process and estimated the level of potential demand for the facility, recommended any necessary complementary visitor infrastructure improvements, developed a facility recommendation, estimated the financial operations of the facility, and HVS Convention, Sports & Entertainment DRAfT Vail Conference Center Business Plan Introduction 1 1 ~o Introduction The need for• a conference center in Vail that can accommodate events larger than any existing hotel with functions space has been under consideration for some time. In November 2002 voters in the Town of Vail passed a public referendum in favor of developing a new conference center with proceeds from an additional 1.5 percent lodging tax and a 0.5 percent sales tax. The Town appointed a Conference Center Advisory Committee to determine the financial feasibility of developing the facility with -the available revenues and the appropriate facility program. This Committee issued a request for proposals for a firm to assist the Committee in developing a business plan for the proposed facility. The Committee selected HVS Convention, Sports & Entertainment Facilities Consulting (HVS) to conduct a detailed analysis of the financial feasibility of the conference center. As part of this work HVS: Developed a facility program recommendation, Projected the demand and financial operations of the facility, Conducted an analysis of the ability of the dedicated revenue to support the estimated development cost of the facility, and Estimated the economic and fiscal impact of the facility. This report details the findings and conclusions of this work. ~eioQ S4u~ies The consulting team of Robert S. Benton & Associates and Hire & Associates completed a market study prepared for the Vail Valley Performance and Conference Center Committee in August of 1993. This study recommended the development of a 94,700 square foot facility with a 950 fixed-seat theater and a 14,600 square foot ballroom. The Town of Vail and the Vail Recreation District retained Economics Research Associates to evaluate the feasibility of a multi-purpose conference center. The March 2000 report looked at two facility alternatives, which both included a conference learning center with a HVS Conference, Sports & Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 18 waiting another year was not worth the benefit from another year's worth of tax revenue collections. If tax-exempt rates increased by 0.75 percent in 2005, a scenario considered possible by the Town's financial advisor, the capacity of the Towri s debt issuance would decrease by approximately $2.9 million. This decrease in debt capacity would largely offset any gains from an additional year of tax collections. HVS Conference, Sports & Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 17 The first option to consider would be to take the additional costs out of the fund balance. Since the fund balance with interest is over 4.5 times greater than the projected annual operating loss in 2007 and that ratio rapidly increases thereafter, the Town could still maintain a sufficient fund balance to cover any unintended significant increases in annual operating losses if the fund balance decreased by $1.5 to $2.0 million. If the fund balance decreases by $2.0 million the ratio of the fund balance to the estimated annual operating deficit is still 2.7 to 1 in 2007. Another option would be to restructure the debt service payments to make them greater in later years when there is more tax revenue available to pay off the debt. Similar to taking the additional construction funds from the fund balance, this option is attractive because it does not alter the physical program or demand potential of the facility. However, restructuring the debt service payments so that they are lower in the early years and greater in the later years would increase the overall financing cost of the project. The third and least attractive option would be to reduce the construction cost of the conference center itself by reducing the size of the facility. If this option proves necessary as a last resort for dealing with increased construction costs, the least damaging approach to the demand potential of the facility would be to reduce the breakout meeting space. A small reduction in the amount of breakout meeting space of 3,000 square feet or less would have the least detrimental effect on the demand potential of the facility. If a greater reduction of facility program space were necessary, than the main ballroom area would likely need to be reduced so as to preserve an adequate ratio of fixed-wall breakout rooms to total function space. diming o$ the issuance The Committee considered the merits of waiting an additional year and o$ debt issuing debt in December of 2005 rather than December 2004. The advantage of waiting an additional year would be that the Town would collect an additional year's worth of tax revenues in that time and this money would augment the initial fund balance for the project. However, if interest rates rise during 2005 the additional borrowing costs may offset the advantage of beginning with a higher fund balance. Another consideration is the additional year of cost escalation in the construction cost for the facility. Finally, waiting another year would delay the opening of the facility and the economic benefits it is projected to generate for the Towri s economy. In consultation with the Towri s financial advisor, the Committee determined that the interest rate risk and construction cost increase associated with HVS Conference, Stiorts & Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 16 analysis on the effects of a series of increased operating deficits, as shown in Table 13. Table 13 Sensitivity Analysis on Size of Operating Deficit as a Percent of Original Estimate Base 110% 125% 150% 197% Annual Net Fund Annual Net Fund Annual Net Fund Annual Net Fund Annual Net Fund Year Operating Balance Operating Balance Operating Balance Operating Balance Operating Balance Income w/Interest Income w/Interest Income w/Interest Income w/Interest Income w/Interest Loss Loss Lass Loss Loss 2003 - 3,343,447 - 3,343,447 - 3,343,447 - 3,343,447 - 3,343,447 2004 - 6,465,086 - 6,465,086 - 6,465,086 - 6,465,086 - 6,465,086 2005 - .5,137,095 - 5,137,095 - 5,137,095 - 5,137,095 - 5,137,095 2006 - 5,458,568 - 5,458,568 - 5,458,568 - 5,458,568 - 5,458,568 2007 (1,113,920) 5,056,045 (1,225,313) 4,944,853 (1,392,401) 4,777,565 (1,67D,881) 4,499,084 (2,194,423) 3,975,542 2008 (940,046) 4,916,722 (1,034,050) 4,709,421 (1,175,057) 4,398,469 (1,410,069) 3,880,215 (1,851,890) 2,905,898 2009 (827,939) 4,995,093 (910,733) 4,701,452 (1,034,924) 4,260,992 (1,241,909) 3,526,892 (1,631,040) 2,146,783 2010 (774,416) 5,228,173 (851,857) 4,852,070 (968,020) 4,287,915 (1,161,623) 3,347,658 (1,525,599) 1,579,974 2011 (743,293) 5,589,961 .(817,622) 5,133,098 (929,116) 4,447,802 (1,114,940) 3,305,643 (1,464,287) 1,158,384 2012 (765,592) 5,952,897 (842,151) 5,411,661 (956,990) 4,599,809 (1,148,388) 3,246,721 (1,508,216) 702,915 2013 (788,560) 6,366,811 (867,416) 5,737,465 (985,699) 4,793,446 (1,182,839) 3,220,080 (1,553,462) 262,152 2014 (812,216) 7,149,441 (893,438) 6,428,112 (1,015,270) 5,346,117 (1,218,325) 3,542,792 (1,600,066) 152,543 2015 (836,583) 8,003,891 (920,241) 7,186,568 (1,045,729) 5,960,584 (1,254,874) 3,917,277 (1,648,068) 75,860 2016 (861,680) 8,912,536 (947,848) 7,995,069 (1,077,100) 6,618,868 (1,292,521) 4,325,201 (1,697,510) 13,106 2017 (887,531) 9;875,538 (976,284) 8,853,629 (1,109,413) 7,320,766 (1,331,296) 4,765,994 (1,748,436) -36,978 2018 (914,157) 10,933,348 (1,005,572) 9,802,549 (1,142,696) 8,106,350 (1,371,235) 5,279,353 (1,800,889) -35,403 2019 (941,581) 12,097,163 (1,035,740) 10,852,869 (1,176,977) 8,986,428 (1,412,372) 5,875,694 (1,854,915) 27,512 2020 (969,829) 13,368,661 (1,066,812) 12,006,106 (1,212,286) 9,962,275 (1,454,743) 6,555,889 (1,910,563) 151,885 2021 (998,924) 14,749,839 (1,098,816) 13,264,093 (1,248,655) 11,035,473 (1,498,386) 7,321,107 (1,967,880) 338,100 2022 (1,028,891) 16,257,786 (1,131,781) 14,643,745 (1,286,114) 12,222,682 (1,543,337) 8,187,578 (2,026,916) 601,582 2023 (1,059,758) 17,894,941 (1,165,734) 16,147,323 (1,324,698) 13,525,897 (1,589,637) 9,156,853 (2,087,724) 943,050 2024 (1,091,551) 19,662,690 (1,200,706) 17,776,033 (1,364,439) 14,946,048 (1,637,326) 10,229,405 (2,150,355) 1,362,118 2025 (1,124,297) 21,569,555 (1,236,727) 19,538,207 (1,405,372) 16,491,184 (1,686,446) 11,412,813 (2,214,866) 1,865,475 2026 (1,158,026) 23,619,266 (1,273,829) 21,437;378 (1,447,533) 18,164,548 (1,737,040) 12,709,830 (2,281,312) 2,454,960 2027 (1,192,767) 25,815,926 (1,312,044) 23,477,452 (1;490,959) 19,969,740 (1,789,151) 14,123,555 (2,349,751) 3,132,726 2028 (1,228,550) 28,169,025 (1,351,405) 25,667,708 (1,535,688) 21,915,733 (1,842,825) 15,662,440 (2,420,244) 3,906,249 Source: FNS This sensitivity analysis shows that the annual operating deficit would need to be 197 percent of the current estimates in each year for the net fund balance to dip below zero at any point during the debt repayment period. Implications of an There are some indications that the cost associated with adding the necessary Increase in the pazking spaces to the adjacent parking deck associated with the conference Construction Cost center could increase by $1.5 to $2.0 million over the current estimate. There are several options for dealing with such an increase in the construction cost. HVS Conference, Sports 6 Entertainment DRAFT Vait Conference Center Business Plan Executive Summary 15 Table 92 19ai1 Conference Center Available Revenue, Debt Service, Coverage Ratios, and Fund Balance Available Cash Funded Annual Annual Annual Capital Net Fund ear Revenue Additional from Funds Available Net Deht Service Debt Service Funds Available Annual Operating Funds Available Main- tenance Other Expen- Yearly Net Cumulative N t Balance Assuming Deht Dedicated Service for Deht Paymen4 Coverage After Debt Loss Aeer Reserve ditures Cash Flows e Fund Balance Annual Taxes ~ Payments Service Service Operating Loss Contra- bution Interest Growth 2003 3,343,447 - - - - 3,343,447 - 3,343,447 - - 3,343,447 3,343,447 3,343,447 2004 3,274,466 - - - - 3,274,466 - 3,274,466 - (210,000)Z 3,064,466 6,407,913 6,465,086 2005 3,196,774 - 3,196,774 (2,597,988) .1.23 596,786 - 598,786 - (2,037,330)3 (1,438,543) 4,969,369 5,137,095 2006 3,330,929 - 3,330,929 (2,596,363) 1.28 734,566 - 734,566 - (500,938)' 233,629 5,202,998 5,458,568 2007 3,557,418 300,000 3,857,418 (2,899,363) 1.33 958,055 (1,113,920) (155,865) (40,000) - (495,865) 4,707,133 5,056,045 2008 3,681,127 300,000 3,981,127 (2,896,863) 1.37 1,084,265 (940,046) 144,219 (70,000) - (225,781) 4,481,352 4,916,722 2009 3,798,346 300,000 4,098,346 (2,896,113) 1.42 1,202,234 (827,939) 374,295 (80,000) - (5,705) 4,475,647 4,995,093 2010 3,920,224 300,000 4,220,224 (2,898,144) 1.46 1,322,080 (774,416) 547,664 (100,000) - 147,664 4,623,311 5,228,173 2011 4,047,036 300,000 4,347,036 (2,896,356) 1.50 1,450,680 (743,293) 707,387 (135,000) - 272,387 4,895,697 5,589,961 2012 4,148,514 300,000 4,448,514 (2,895,575) 1.54 1,552,939 (765,592) 787,347 (220,000) - 267,347 5,163,045 5,952,897 2013 4,252,567 300,000 4,552,567 (2,901,888) 1.57 1,65(1,680 (788,560) 862,120 (250,000) - 312,120 5,475,165 6,366,811 2014 4,359,261 300,000 4,659,261 (2,598,288) 1.79 2,060,974 (812,216) 1,248,758 (275,000) - 673,758 6,148,922 7,149,441 2015 4,468,665 - 4,468,665 (2,599,888) 1.72 1,868,777 (836,583) 1,032,194 (30D,000) - 732,194 6,681,116 8,003,891 2016 4,580,846 - 4,580,846 (2,597,388) 1.76 1,983,459 (861,680) 1,121,779 (350,000) 771,779 7,652,895 8,912,536 2017 4,695,878 - 4,695,878 (2,597,750) 1.81 2,098,128 (887,531) 1,210,597 (400,000) - 810,597 8,463,492 9,875,538 2018 4,813,833 - 4,813,833 (2,595,138) 1.85 2,218,095 (914,157) 1,303,939 (415,000) - 888,939 .9,352,431 10,933,348 2019 4,934,786 - 4,934,786 (2,596,350) 1.90 2,338,436 (941,581) 1,396,855 (420,000) - 976,855 10,329,286 12,097,163 2020 5,058,815 - 5,058,815 (2,599,350) 1.95 2,459,465 (969,829) 1,489,636 (425,000) - 1,064,636 11,393,922 13,368,661 2021 5,185,998 - 5,185,998 (2,599,500) 1.99 2,586,498 (998,924) 1,587,574 (435,000) - 1,152,574 12,546,496 14,749,839 2022 5,316,417 - 5,316,417 (2,596,800) 2.05 2,719,617 (1,028,891) 1,690,725 (435,000) - 1,255,725 13,802,221 16,257,786 2023 5,450,154 - 5,450,154 (2,596,250) 2.10 2,853,904 (1,059,758) 1,794,146 (435,000) - 1,359,146 15,161,367 17,894,941 2024 5,587,297 - 5,587,297 (2,599,000) 2.15 2,988,297 (1,091,551) 1,896,746 (435,000) - 1,461,746 16,623,113 19,662,690 2025 5,727,931 - 5,727,931 (2,598,000) 2.20 3,129,931 (1,124,297) 2,005,633 (435,000) - 1,570,633 18,193,747 21,569,555 2026 5,872,147 - 5,872,147 (2,598,250) 2.26 3,273,897 (1,158,026) 2,115,871 (435,000) - 1,680,871 19,874,618 23,619,266 2027 6,020,038 - 6,020,038 (2,599,500) 2.32 3,420,538 (1,192,767) 2,227,771 (435,000) - 1,792,771 21,667,388 25,815,926 2028 6,171,698 - 6,171,698 (2,596,500) 2.38 3,575,198 (1,228,550) 2,346,647 (435,000) - 1,911,647 23,579,036 28,169,025 2029 6,327,223 - 6,327,223 (2,599,250) 2.43 3,727,973 (1,265,407) 2,462,567 (435,000) - 2,027,567 25,606,602 30,678,282 2030 6,486,715 - 6,486,715 (2,597,250) 2.50 3,889,465 (1,303,369) 2,586,096 (435,000) - 2,151,096 27,757,699 33,353,977 2031 6,650,275 - 6,650,275 (2,595,500) 2.56 4,054,775 (1,342,470) 2,712,305 (435,000) - 2,277,305 30,035,004 36,201,635 2032 6,818,008 - 6,818,008 (2,598,750) 2.62 4,219,258 (1,382,744) 2,836,514 (435,000) - 2,401,514 32,436,518 39,222,197 2033 6,990,022 - 6,990,022 (2,596,500) 2.69 4,393,522 (1,424,226) 2,969,296 (435,000) - 2,534,296 34,970,814 42,427,193 2034 7,166,427 - 7,166,427 (2,598,750) 2.76 4,567,677 (1,466,953) 3,100,724 (435,000) - 2,665,724 37,636,538 45,818,422 ~ A potion o/ the lands accumulated prior to debt service issuance is used to augment debt service payments in years 2007 through 2014 Project implementation cods o! $210,000, including consulting lees and owner's representative costs, subtracted from land balance in 2004 Cost of debt Issuance, underwriter's spread, insurance premiums and cash towards construction cost o/$2,037,330 subtracted Iron /und balance in 2005 ' Pre-opening expenses o/ $500,938 subtracted lrom land balance in 2006 Source: HVS Inlemational Including both the annual debt service payments and the estimated operating deficit of the conference center, the tax revenues dedicated to this project are sufficient to finance its costs and still maintain a healthy fund balance to help insulate the Town from risk associated with higher-than- anticipated operating deficits. To help the Town evaluate the implications of increased operating deficits for the facility HVS performed a sensitivity HVS Conference, Sports £> Entertainment DRAFT Vail Conference Center Business PIan Executive Summary 14 Table 11 Sources & Uses of Funds Sources Proceeds of Debt $42,450,000 Premium (Discount) 1,086,882 Cash contribution from tax revenues prior to debt issuance 501,024 Total $44,037,906 Uses Project Fund $42,501,024 Underwriter's Discount 424,500 Cost of Issuance 424,500 Insurance Premium 600,249 Debt Service Reserve Fund Insurance 87,057 Rounding 576 Total $44,037,906 Source: George K Baum & Company This preliminary assessment of financing capacity indicates that the dedicated revenues are sufficient to support debt payments on an approximate $42 million bond issue. Table 12 shows the estimated net debt service payments each year, the coverage ratio, and the net fund balance. HVS Conference, Sports F~ Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 13 ~~ fable 90 i:stima4ed lievenues Available foe Deb4 Service Sales Tax Revenue Lodging Ta: Revenue Year Available tar Available for Total Available Tax Annual % Conference Center Conference Center Revenue (5000) Change 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 .~:~i Estimated Total Available OperaBng Profit Revenue for (Lass) Debt Service (5000) 1,813 1,531 3,343 - - 3,343 1,763 1,512 3,274 -2.1% -- 3,274 1,700 1,497 3,197 -2.4% -- 3,197 1,789 1,542 3,331 4.2% - 3,331 1,939 1,619 3,557 6.8% (1,114) 2,443 2,002 1,679 3,681 ~ 3.5% (940) 2,741 2,052 1,747 3,798 3.2% (828) 2,970 2,102 1,818 3,920 3.2% (774) 3,146 2,153 1,895 4,047 3.2% (143) 3,304 2,201 1,948 4,149 2.5% (766) 3,383 2,250 2,002 4,253 2.5% (789) 3,464 2,301 2,058 4,359 2.5% (812) 3,547 2,353 2,116 4,469 2.5% (837) 3,632 2,406 2,175 4,581 2.5% (862) 3,719 2,460 2,236 4,696 2.5% (888) 3,808 2,515 2,299 4,814 2.5% (914) 3,900 2,572 2,363 4,935 2.5% (942) 3,993 2,630 2,429 5,059 2.5% (970) 4,069 2,689 2,497 5,186 2.5% (999) 4,187 2,749 2,567 5,316 2.5% (1,029) 4,288 2,811 2,639 5,450 2.5% (1,060) 4,390 2,875 2,713 5,587 2.5% (1,092) 4,496 2,939 2,789 5,728 2.5% (1,124) 4,604 3,005 2,867 5,672 2.5% (1,158) 4,714 3,073 2,947 6,020 2.5% (1,193) 4,827 2.5% 1.5% Source: dN5 The investment banking firm of George K. Baum assisted HVS in defining the appropriate financing assumptions and calculated the financing capacity under the proposed financing plan. The Committee considered a variety of financing plans with varying assumptions regarding annual debt payments, total facility cost, cash funded versus insured reserves, and other variables before selecting a preferred finance plan. Table 11 shows the funding capacity and the source and uses of funds that result from this financing approach. FNS Conference, Sports £r Entertainment DPv1FT Vail Conference Center Business Plan Executive Summary 12 Tahle 9 Conceptual Cost Estimate of the Recommended Conference Center Conference Center- 125 Parking Spaces- Total Project 100,000 SF 40,965 SF Cost Item Total Cost Cost / SF Total Cost Cost / SF Hard Costs Construction $27,371,452 $274 $2,504,111 $61 $29,875,563 Sftework $3,868,631 $39 in above - $3,868,831 Total Hard Costs $31,240,283 $312 $2,504,111 $61 $33,744,394 Soft Costs Design, Engineering, and Materials Testing Fees $2,467,982 $25 $87,644 $2 $2,555,626 FF&E, Teledata, POS, qN, Parking Equip, Etc. $1,920,000 $19 $275,000 $7 $2,195,000 Permits, Tap Fees, and Other Govt. Fees $350,000 $4 $50,000 $1 $400,000 Contingency $1,798,913 $18 $145,838 $4 $1,944,751 Legal, Project Management, and Insurance $1,661,253 $17 In Conf. CnV. - $1,661,253 Total Sott Costs $8,198,148 $82 $558,482 $14 $8,756,630 Total Development Cost $39,438,431 $394 $3,062,593 $75 $42,501,024 Source: Architectural ResourceConsultants HVS developed preliminary estimates of the amount of revenue that will be available from the dedicated taxes, as shown in Table 10. FIVS Conference, Sports & Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 11 2007 2008 Tax Estimated Tax Base Estimated Tax Base Revenue Revenue Local Sales $8,130,138 $365,856 $13,589,590 $611,5; Hotel Lodging 3,777,237 109,540 6,654,038 192,91 Total 5475.396 And da Table 8 Summar of Neuu Fiscai Tax Revenue 2010 ~ 2011 Tax Estimated Tax Base Tax Base Estmated Revenue Revenue Local Sales $21,458,855 $965,648 $23,941,871 $1,077,384 Hotel Lodging 10,567,174 306,448 11,689,710 339,002 Total $1,272.D97 $1,416,386 2009 Tax Base Estimated Revenue $18,717,020 $842,266 9,175,759 266,097 $1,108,363 Scarce: HVS By the time demand for the proposed conference center stabilizes in 2011, the analysis estimates that the new spending would generate a little over $1.4 million in fiscal tax revenue aruiually for the Town. Of this new revenue, approximately $295,055 would be allocated to the conference center from the 0.5 percent sales tax and 1.5 percent lodging tax and $163,656 would be allocated to the Vail Local Mazketing District, leaving approximately $957,675 in Town of Vail tax revenue that isn't directly allocated to the conference center or the marketing district. fFinancie~ The town of Vail hired an azchitectural consulting firm to develop a cost estimate of the recommended facility, results of which are shown in Table 9. HVS Conference, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 10 deficit fo increase slightly as the expenses increase at a greater increment due to the fact that they are greater than revenues. Economic Impact The ability of conference centers to attract new events and attendees from out of town who spend considerable amount of money in the local economy is the primary rationale for municipalities to invest in these facilities. HVS estimates the amount of new spending that the proposed conference center would attract to the Town. The methodology I-IVS employs is designed to measure only the new spending that the proposed facilities would attract to the Town and exclude any transfer spending. Using average spending data from the International Association of Conference & Visitor Bureaus and several local sources, HVS estimates the amount of new direct spending the proposed facilities would generate. HVS then uses aninput /output model to estimate the indirect and induced spending the Towri s economy would capture and the number of jobs this spending would support. Table 7 shows the estimated new spending and the number of jobs the events attracted to the conference center and _, headquarters hotel would generate in the Town economy. Table 7 Total S ending (Inflated Dollars in Millions & Employment Impact 2007 2008 2009 2010 2011 Type ofimpact Spending Jahs Spending Jobs Spending Jobs Spending Jobs Spending Jobs Directlmpact $8.7 102 $15.1 170 $20.7 226 $23.7 252 $26.2 268 Indirect ~ 1.0 10 1.8 16 2.5 21 2.8 24 3.1 26 Induced ~ 1.3 14 2.2 22 3.0 29 3.5 33 3.8 35 Total $11.0 125 $19.0 207 $26.2 277 $30.0 308 $33.1 329 ~ Total industry output Source: HVS The economic impact analysis estimates that the conference center would attract new events and attendees that would generate approximately $33.1 million in new direct, indirect, and induced spending into the Town economy and would support 329 jobs. Table 8 shows the estimated fiscal tax revenue that the additional events and attendees would generate for the Town. FNS Conference, Sports & Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 9 gable 5 fVew Room Night Projections Event Type 2007 2008 2009 2010 2011 Percent New to the Market Corporate Conferences 80% 83% 84% 85% 85% Association Conferences 85% 87% 88% 90% 90% Banquets 50% 55% 60% 65% 70% Meetings 15% 18% 20% 20% 20°,6 Entertainment 0% 0% 0% 0% 0% Other 15% 15% 15% 15% 15% New Room Nights Corporate Conferences 15,680 23,406 27,216 28,985 31,875 Association Conferences 8,500 18,357 28,160 33,120 34,740 Banquets 950 1,265 1,740 2,080 2,380 Meetings 165 252 300 320 340 Entertainment - - _ _ _ Other 75 75 75 75 90 Total 25,370 43,355 57,491 64,580 69,425 Source: HVS The projection estimates that the proposed conference center would attract close to 70,000 new room nights to the market annually by demand stabilization in 2011. Table 6 shows the projected operating revenues and expenses for the recommended facility. Treble 6 Projected Conference Center (Revenue and Expenses Revenue/Expenses 2007. 2008 2009 2010 2011 Revenue $2,496,333 $3,394,855 $4,169,501 $4,652,975 $5,035,644 Expenses $3,610,253 $4,334,901 $4,997,440 $5,427,391 $5,778,937 Net Income ($1,113,920) ($940,046) ($827,939) ($774,416) ($743,293) Source: HI/S The financial operating projections estimate that the facility would operate at a deficit of between $1.1 million in the first year and $743,293 at stabilization in 2011. Operating deficits in this range are typical for conference center facilities of this size. After 2011 inflation would cause the annual operating HVS Conference, Sports £> Entertainment L)RAFT Vail Conference Center Business Plan Executive Summary 8 Table 4 Projected Events and Attendance 2007 - 2011 Event Type 2007 2008 2009 2010 2011 Number of Events Corporate Conferences 15 19 21 22 23 Association Conferences 7 15 22 25 26 Banquets 25 30 38 42 45 Meetings 90 100 107 109 110 Entertainment 10 13 14 15 15 Other 20 22 23 24 25 Total 167 199 225 237 244 Average Attendance Corporate Conferences 433 473 481 485 507 Association Conferences 507 498 503 511 517 Banquets 400 400 400 400 400 Meetings 100 110 115 120 125 Entertainment 500 500 500 500 500 Other 450 450 450 450 450 Total Average 258 281 293 302 310 Total Attendance Corporate Conferences 6,500 8;995 10,095 10,675 11,650 Association Conferences 3,550 7,465 11,070 12,765 13,450 Banquets 10,000 12,000 15,200 16,800 18,000 Meetings 9,000 11, 000 12,305 13,080 13,750 Entertainment 5,000 6,500 7,000 7,500 7,500 Other 9,000 9,900 10,350 10,800 11,250 Total 43,050 55,860 66,020 71,620 75,600 Source: HVS The projection estimates that total attendance would increase from 43,050 in 2007 to 75,600 in 2011. Table 5 shows the estimated percentage of room nights the conference center would attract that would be new to the community and the resultant number of new room nights by type of event. FNS Conference, Sports £a Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 7 non Figure Z lielative Attractiveness of Selected Event locations Among State Event Planners vas Denve Cdorado Spring: Asper Keystone Englewooc TeOUride Grand Junction Fort Cdlins Puebla Greeley Boulder 7 2 3 4 5 Very Unattractive Average Very Attractive Source: FNS Survey Event planners rate Vail as easily the most attractive event destination. It is typical to see some bias in favor of the subject location in such surveys, but the disparity between the rating for Vail and the other locations in the state is noteworthy. The disparity between Vail and the other resort locations on the list is indicative of significant demand potential associated with events that typically utilize resort locations. ®emar~d projections Table 4 shows the projected number of events and attendees by type of event between 2007 and 2011, the point at which the analysis estimates that the facility would reach a stabilized point of demand. FNS Conference, Sports f~ Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 6 Figure 1 Ratings of Overall Attractiveness of Resorts as Event locations . t R 4ai, CO-Confamm Cent ~ ~,~_ 3.4 Iv~P~I u• AlonUney CA-Canferenm - ~'~' '" 3.3 Cenlm ¢'{ I ~ Aspeq CO - Snowmase 9.2 . Confnerce CaNer ~ . __ Keyelone, CO-Retmtd ~ _.°_a .` 3.0 Conference Center ~ ~ nw=9~-'+'~;. - i VJhLttler, BC-Corderenm _-_ - 3.0 -Center -~•. '~~-: . _i 9anR.A9-BattilCanoe ,;~e~';~ i. 2.9 1 2 3 4 5 Very Unattractive Avarege Very Attractive Source: HVS Survey These event planners ranked the proposed Vail facility ahead of any of the other peers as a potential location for their events. In another key question, HVS asked national event planners to indicate how frequently they believed they would utilize the planned Vail conference center. Two-thirds of the event planners indicated that they expected to utilize the conference center. Approximately 43 percent of the respondents indicated they planned on using the facility at least once every five years. HVS also surveyed State of Colorado event planners and asked them to rate the overall attractiveness of a set of existing primary convention facilities, conference centers, and hotels with meeting space that frequently host State events. This survey was entirely separate from the national survey and the respondents and results are distinct and do not overlap with or represent a subset of the national survey. HVS selected the list of facilities based upon an assessment of the one or two facilities in each market that would compete most directly with a conference center in downtown Vail for State events. Figure 2 shows the average ratings of these selected facilities. HVS Conference, Sports £> Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 5 Table 3 Square Feet off Function Space by Type in Peer Resort Conference Centers and Area dodging 4lnits acility Square Feetol Meeting Space Square Feet o1 Largest Single Space Largest Room Banquet Capacity in # of Peopla Maximum Number of Meeting Rooms Lodging Units in Market Area Estimated Annual Operating Profit (Loss) Banff Centre' 52,814 5,879 486 53 4,364 ($639,465 Keystone Conference Center 44,180 19,800 ' 1,636 25 1,300 ($1,695,565) Monterey Conference Center 40,976 19,600 1,620 15 4,500 $1,500,000 Snowmass Conference Center 18,399 10,823 894 10 1,300 N/A Telluride Conference Center 10,961 6,069 502 9 1,362 $600,000) Whistler Conference Centre 34,403 16,500 1,364 19 5,200 WA Peer Facility Average 33,622 13,112 1,084 22 3,004 ($1,108,757) ' Ban!! Centre financial operating revenue inGudes Sfl9 million of grants Sources: Major Exhibit Hall Daectory 2002 and respechve ladlities Onput from i:vent HVS surveyed planners of national and State events to learn about their planners perceptions of Vail's attractiveness as a location for.their events and to gauge their overall level of interest in bringing events to a new conference center in Vail. I-iVS received a total of over 50 completed responses to an internet survey, conducted three focus groups, and interviewed several other meeting professionals. One of the key survey questions asked event planners of national and regional events to rank the relative attractiveness of the set of peer conference centers and the proposed facility in Vail, as shown in Figure 1. FiVS Conference, Sports £~ Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 4 more than double the estimated annual operating deficit. This analysis is included in an appendix. Site Issues At the direction of the Committee, HVS and its architectural consultant LMN Architects assessed the capacity of two potential sites to accommodate the recommended facility program. The sites included the Charter Bus Lot adjacent to the Lionshead parking structure and the area above the existing Lionshead parking structure. LMN's analysis of the sites revealed that either could accommodate the recommended facility. The smaller Charter Bus Lot site would require the construction of a two-level conference center. The option that calls for building the facility above the parking structure could accommodate asingle-level facility: Asingle-level conference center generally is more efficient in terms of its special layout, but a properly designed two- level facility can achieve a high level of efficiency as well. In addition, building the facility over the parking structure would leave the Town more options for incorporating a proposed adjacent transit center. Construction consultants working for the Town estimated that the construction premium for building the facility above the parking structure would be approximately $3 million in hard construction cost. Due to concerns about the useful life of the existing Lionshead parking structure being less than the anticipated life of the conference center to be built above, the Town directed HVS to proceed with the assumption that the facility would be built on the Charter Bus Lot site. However, the Town continues to evaluate potential solutions that could improve the feasibility of the option of building above the parking structure. Foisting Conditions Vail has several hotels with conference center space, ,but none with a dedicated ballroom space with more than 8,300 square feet. An analysis of six peer resort markets details the facility programs and operations of their conference centers. Table 3 shows the amount of function space in these conference centers and the number of lodging units u1 their market areas. HVS Conference, Sports f> Entertainment DRAFT Vaii Conference Center Business Pfan Executive Summary 3 Ta61e 2 @iecommended Facility Peogeam Size Capacity Area Square Feet Banquet Theater Reception Classroom U-Shape Main Ballroom /Exhibit Space 25,000 2,070 2,780 2,630 1,710 670 Ballroom A .8,400 690 930 880 580 220 Ballroom B 4,100 340 460 430 280 110 Ballroom C 8,400 690 930 880 580 220 Ballroom D 4,100 340 460 430 280 110 Mountain Terrace 5,000 410 56D 530 -- -- Meeting Rooms 20,000 1,650 2,220 2,110 1,370 530 Block 1 /Junior Ballroom 10,000 830 1,110 1,050 680 270 . Junior A 2,500 210 280 260 170 70 Junior B 2,500 210 280 260 170 70 Junior C 2,500 210 280 260 170 70 Junior D 2,500 210 280 260 170 70 Block 2 6,000 500 670 630 ~ 410 160 Room 2-A 3,000 250 330 320 210 80 Room 2-B 1,500 120 170 160 100 40 Room 2-C 1,500 120 170 160 100 40 Block 3 4,000 330 440 420 270 110 Room 3-A 1,000 80 110 110 70 30 Room 3-B 1,000 80 110 110 70 30 Room 3-C 1,000 80 110 110 70 30 Room 3-D 500 40 60 50 30 10 Boardroom 500 -- -- - 20 10 Total ~ 45,000 3,720 5,000 4,740 3,080 1,200 Lobby / Prefunction Space- Ballroom 10,000 Lobby / PrefuncGon Space- Meeting Rooms 10,000 ' Square feet excludes terrace So urces: CMN & HVS The Committee asked HVS to analyze an alternative facility program with a main ballroom measuring 20,000 square feet and a total construction cost that could be adequately funded with annual debt service payments of $2.55 million. HVS analyzed this alternative scenario in detail. After reviewing the two options the Committee determined that the 25,000 square foot ballroom scenario was preferable due to its greater demand potential. The Committee also asked HVS to determine the effects of eliminating all events other than conferences at the recommended facility. A decision to implement a booking policy that restricted all but conferences from occurring at the facility would HVS Conference, Sports Fj Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 2 Project History The need for a new conference center in Vail has been under consideration for some time. Prior studies and analysis have identified the need for a conference center with anywhere from a 20,000 to 40,000 square foot main ballroom. Despite these findings, Vail has continued to lack a conference facility that can accommodate groups in excess of 500 attendees. In November 2002 voters in the Town of Vail passed a public referendum in favor of developing a new conference center with proceeds from an additional 1.5 percent lodging tax and a 0.5 percent sales tax. The Town appointed a Committee to determine the financial feasibility of developing the facility with the available revenues and the appropriate facility program. In August 2003 the Town of Vail hired HVS Convention, Sports & Entertainment Facilities Consulting to develop a business plan for a conference center. This analysis is designed to determine the feasibility of such a development and to measure its potential economic impact in the community. Recommended Facility This report recommends that the Town of Vail pursue the development of a Program new conference center with a 25,000 square foot main ballroom /exhibit space and 25,000 square feet of breakout meeting space. The facility should feature an overall level of quality representative of Van's reputation as a world-class resort destination. Design features should enhance event attendees' sense of being in a remarkable mountain resort. Table 2 shows the recommended program. FNS Conference, Sports & Entertainment DRAFT Vail Conference Center Business Plan Executive Summary 1 Executive Summary Summat'y of Keb HVS assisted the Town of Vail's appointed Conference Center Advisory findings Committee (Committee) in developing a recommendation for a new conference center in the Town of Vail. For a complete understanding of the recommendations and estimates and the supporting analysis the reader should refer to the full report. Table 1 shows a summary of key data on the proposed project. Ta61e ~ Summary of Key Project Data Facility Program Main Ballroom 25,000 Square Feet Breakout Meeting Space 20,000 Square Feet Gross Building Area 100,000 Square Feet Estimated Demand at Stabilization (2011) Number of Events 244 Attendance 75,600 New Room Nights 69,425 Estimated Financial Operations at Stabilization (2011) Revenue $5,035,644 Expenses $5,778,937 Net Income (Lass) ($743,293) Estimated Economic Impact at Stabilization (2011) Total Spending $33,131,009 Jobs 32g Fiscal Impact $1,416,386 Financing Assumptions Estimated Construction Cost $42,501,024 Annual Debt Service Payments $2,600,000 Date of Debt Issuance December 2004 Repayment Period 30 Years Ta Exempt Interest Rate 4.70 Source: HVS CONVENTION _ _ _ _ SPORTS do INTERNATIONAL E~UTERTAINIvIIIVT March 16, 2004 Rod Slifer Conference Center Oversight Committee C/O Town of Vail Department of Community Development 75 South Frontage Road Vail, CO 81657 Re: DRAFT Town of Vail Conference Center Business Plan Dear Mr. Slifer: ~~ west Erie HVS herewith submits our revised DRAFT conference center business suite 1 :a plan. We made every attempt to be responsive to the helpful and Chicagx~,1L ~61o detailed comments provided by the Conference Center Oversight (312) 557-9900 (312) 557-9908 FA)C Committee. www.hvsinternationa].co~n Our conclusions are based on our present knowledge of the meetings industry and the fieldwork and research completed to date. It has been a great pleasure working with you and the City's Conference Center Oversight Committee. The considerable efforts of you and your fellow Committee members have been instrumental in the efficient and effective development of this analysis. New York DRAFT San Francisco Boulder Denver Paul Sajovec M'a"" Senior Vice President Dallas HVS Convention, Sports & Chicago Rock~~lle, i,ID Entertainment Facilities Consulting Weston, cr A Division of HVS International Phoelvx Vancouver Toronto London Madrid New Dell~i Singapore Hong Kong Sydney Sao Paulo Buenos Aires Table of Content Transmittal Letter executive Summary 1. Introduction 2: Market ®vervie~nr 3. Convention /Meeting Industry Trends 4. Lodging Analysis 5. ]Peer Resort Market and Facility Analysis 6. Event Planner Input 7. Facility itecommendations and Concept Plan 8. Demand Projections 9. Financing ®perating Projections 10. Economic Impact Analysis 11. Financing Analysis 12. Statement of Assumptions and Limiting Conditions 13. Certification Appendix A DRAFT Vail Conference Center Puniness Plan Conference Center Oversight Committee Vail, Colorado Submitted to: Rod Slifer Conference Center Oversight Committee C10 Town of Vail Department of Community Development 75 South Frontage Road Vail, CO 81657 Prepared by: HVS Convention, Sports & Entertainment Facilities Consulting A Division of HVS International 445 West Erie, Suite 1-A Chicago, IL 60610 (312) 587-9900 Phone (312) 587-9908 Fax Web Site: www.hvsinternational.com March 16, 2004 FNS Convention, Sports f> Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 525 and the quality of its lodging properties are generally superior to the peer ski resort markets with conference centers. As long as Vail lodging properties do not price themselves out of the group market, the Town's attractiveness provides an advantage relative to the other peer markets. Accessibility is a key concern among event planners. Vail's accessibility relative to conference center locales is a challenge. However, Vail compares favorably to the set of peer resort markets with conference centers. The level of air service to the smaller commercial airports in the peer ski communities is highly seasonal. Monterey is the exception because its attractions are less seasonal. As a result, these communities must depend heavily on the air service of the nearest commercial hub airport in the non-ski seasons. None of the peer markets are located within a short drive of the closest hub airports, but Vail compares favorably to the peer average. This peer market analysis provides a base of information to help guide ~ the facility recommendations and demand and operating projections, which are detailed in the subsequent report sections. The analysis suggests that a facility .with a program similar to those of Whistler, Monterey, and Keystone could accommodate a wide range of regional and state business. Access to national business may improve with a slightly larger main ballroom than these peers. Other factors that are more difficult to quantify, such as overall destination appeal, are also relevant to conference center demand potential. Section 2 includes descriptions of the very strong collection of visitor attractions Vail offers. Surveys and focus groups with event planners, detailed in Section 5 of this report, provide insight into the more subjective aspects of Vail's conference center demand potential. HVS Convention Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-24 on state/provincial and regional demand. Management of the Monterey Conference Center believes that their main ballroom space is a little ' undersized for national associations and many national corporate events. Whistler, with a slightly smaller main ballroom space, also lacks a significant volume of national (or North American) demand. However, their recent expansion is cited as the impetus for landing an ADP corporate event that will bring 6,400 room nights to Whistler in August 2004. Analysis of facility .programs and interviews with the managers of these facilities reveal a number of key points that are relevant to the Town of Vail as it considers the development of a new conference center: ^ Breakout meeting space and flexibility of overall function space is critical-Managers of these facilities either referred to the amount of breakout space and the flexibility of their space as a key strength or weakness relative to their demand potential. ^ Non-facility revenues subsidize the financial operations of each of these facilities-Each of these facilities requires an outside source of revenue to 'cover the cost of their operations. This outside revenue comes in different forms including municipal taxes, assessments, and grants. ^ In an increasingly competitive environment for attracting events, the quality of the conference facility and the accessibility to lodging units is more critical than ever-ln the past a mountain resort conference center may have been able to attract a segment of event demand simply due to the attractiveness of its location. However, with the increasing number of facilities in different mountain resort locations, event planners are less and less likely to make concessions on the layout and overall functionality of conference venues. Similarly, event planners are also less likely•to settle for less than appropriate accommodations for their event attendees. Vail compares favorably to the peer mountain resort markets in terms of the number of ski visits. Furthermore, Vail is generally regarded as one of the more attractive ski destinations in the world. This attractiveness as a ski destination translates not only in its drawing power during the ski season, but the overall character and quality of the resort. In part because of the quality of the ski experience in Vail, the Towri s European village atmosphere HVS Convention, Sports f~ Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 523 ~a61e 5-~ 5 Annual Budgets of Selected Marketing Organizations in Vail and its Peers Market Organaation Annual Budges Vail' Vail Valley Chamber & Tourism Bureau & Local Marketing District $2,774,814 onterey Monterey CVB /Monterey Convention Auth. ~ $2,800,000 nowmass Snowmass Vllage Marketing and Special Events Board $2,500,000 Keystone Keystone Resort $1,208,194 Telluride Telluride & Mountain ~Ilage Convention ~ Visitors Bureau $1,000,000 Banff Banff/Lake Louise Tourism Bureau $920,246 Peer AverageZ $1,685,688 Subject % of Average 164.6% ' Vail figure includes the group events budget of the Local Marketing District `Average o/ peers not including Vail Sources: Respective organizations and HVS It is important to note that the preceding budget figures include expenditures on overall destination marketing in addition to any specific conference center related marketing. The private resort associations that operate and market the conference centers in Whistler and Snowmass were unwilling to share data on their marketing budgets. Vail and Monterey have the most significant marketing resources among the peer markets for which data is available. 9mplications o4 deer This review of a set of six peer resort markets with conference facilities 6iesort Market and provides information on the type, size, and character of conference centers in (facility Ana9ysis these markets. Generally, these facilities consist of a main ballroom/multi- purpose space of less than 20,000 square feet and a considerable supply of breakout meeting space. The Banff Centre is the most unique, and perhaps least relevant facility relative to what Vail hopes to accomplish with a new conference center, as it is designed to function under and academic model rather than as an engine for economic impact. The facilities in Telluride and Snowmass have somewhat smaller main ballroom spaces than the other peers. Two of the most relevant peer markets in terms of destination appeal and the availability of lodging units are Whistler and Monterey. The conference centers in each of these markets have a ratio of breakout meeting space to main ballroom space of 52 percent. Interviews with the managers of each of these facilities indicate that a high volume of flexible meeting space is critical to their success in attracting and retaining events. Both facilities rely largely HVS Convention, Sports £~ Enfertuinment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-22 ,. be to convince meeting planners that the attractiveness of Vail makes it worth the extra effort to get there relative to more easily accessible, but perhaps less impressive destinations.. Monterey has an advantage because it is located closer to both a major hub airport and a regional airport. Keystone benefits from being 23 miles closer to DIA, but is 33 miles further from Eagle County Airport than Vail. Vail has -clear accessibility advantages relative to Whistler and Telluride. A]:though Snowmass is located closer to a commercial airport than Vail that has a ,superior. volume of service, Snowmass is 74 miles further from DIA, the nearest commercial hub airport. In summery, Vail compares favorable to the peer resorts on average in respect to overall accessibility to air travel. Marketing Budgets The budget of the convention and visitors bureau and/or other organizations that sell a particular market is one measure of the marketing resources ° available for promoting a conference facility. Comparisons between various resort markets is considerably complicated due to the fact that most such markets have multiple organizations promoting the destination or particular attractions. Vail, for instance, has a local convention bureau, a local marketing district, and Vail Resorts which each market the destination in varying degrees. Vail Resorts generally focuses its marketing efforts on the ski season and individual vacationers. HVS collected data on the annual budget for the organization that either has the primary responsibility for marketing each respective conference center facility or the organization that is charged with marketing lodging units in the destination generally, and thus would have a direct interest in increasing group room nights in the market. Table 5-15 shows the annual budgets for the identified organizations in each market for which such data was available. HVS Convention, Sports & Entertainment DRAFT Uail Convention Center Business Plnn Peer Market Analysis 5-21 then shows the distance from the closest commercial airport, regazdless of whether it is a hub airport or not, and the level of air service available at that airport. Table 5-94 Comparison of Distance and Deitre Time from Closest Hub Airport and Closest Commercial Airport and Air Sen-ice Levels Market Closest Major Commercial Hub Miles Drive Total Total Airport Time Passengers Flights Vail Denver Intemational Airport 122 2:20 35,651,098 494,834 Banff Calgary Intemational Airport 88 1:39 7,884,194 223,132 Whistler Vancouver Intemational Airport 83 2:21 14,877,536 296,626 Snowmass DenverlntemationalAirport 196 3:32 35,651,098 494,834 Keystone Denver Intemational Airport 99 2:05 35,651,098 494,834 Monterey San Francisco Intemational Airport 102 1:47 34,632,474 387,594 Telluride Albuquerque International Support 352 7:22 6,117,646 130,475 Peer Average 153 3:07 22,469,008 337,916 Vail as % of Peer Average 80% 75% 159% 146% Market Closest Commercial Airport Miles Drive Total Total Time Passengers flights Vail Eagle County Airport 35 0:40 243,196 1,637 Banff Calgary Intemational Airport 88 1:39 7,884,194 223,132 Whistler Vancouver Intemational Airport 83 2:21 14,877,536 296,626 Snowmass AspeNPitkin County Airport 4 0:10 361,983 8,018 Keystone Eagle County Airport 68 1:35 243,196 1,637 Monterey Monterey Peninsula AirpoR 3 0:06 375,362 NA Telluride Telluride Regional Airport 5 :15 34,245 3,488 Peer Average 42 1:10 3,962,753 106,580 Vail as % of Peer Average 84% 57% 6% 2% Sources: Ind~vidua/ Airports, Airports Council lntemadonal, and Rand McNa/y Vail's proximity to its nearest large hub airport is superior to the peer market average. If Telluride is removed, the average drive time to the nearest commercial hub falls to 2:17,.which is still comparable to Vail. The level of air service at its nearest hub airport, D1A, is significantly higher than that of its Canadian peers and roughly equal to that of Monterey (San Francisco International). Vail is closer to Eagle County Airport than the average distance among the peer set. Since some of the resorts' closest commercial airport is a major hub the average level of air service is much greater than Eagle County Airport: However, these larger hub airports are located an hour-and-a-half or more away, which is further than DIA is to Vail. Relative to this set of resort peers, Vail's overall accessibility compares favorably. The challenge for marketing conference center events in Vail will HVS Convention Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-20 reflect underlying trends in business activity and the attractiveness of an area as a place to live and as a place to visit. Table 5-13 shows population figures for the peer markets. Table 5-13 Population of Peer Markets Municipal Municipal Compound Market Population Population Annual 2000 1990 Growth Vail 4,531 3,659 2.2°k Banff. 7,716 5,688 3.1 % Keystone 825 568 3.8% Monterey 29,674 31,954 -0.7% Snowmass 1,822 1,449 2.3~° Telluride 6,666 3,732 6.0% Whistler 9,000 4,459 7.3% F'eer Average 9,284 7,975 3.6% Subject % of Average 49% 46% 59.7% Source: Census Bueau Vail has the 3`a smallest population of the peer markets at 4,531 residents. Vail's annual compound rate of population growth of 2.2 percent is the 2nd lowest and is well below the peer average of 3.6 percent. Air Service & Accessibility The accessibility and affordability of a destination via air travel is an important consideration for planners of national and certain regional events because it affects a destination's ability to attract attendees. This is particularly true for resort conference centers that cater to national and international events. The overall accessibility of resort destinations is comprised of three key factors: ^ Level of air service at the nearest commercial airport, ^ Level of air service a tt-e nearest hub airport, and ^ Drive tune from these airports. Table 5-14 shows a comparison of the distance from the closest major commercial hub airport and the level of air service at that airport. The table HVS Convention, Sposts fi Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-19 " days is one measure of the relative attractiveness of these peer markets. However, these markets generally focus primarily on attracting groups in the non-ski season when tourism is not at its peak level. Relative volume of skier days does provide some insight into the capacity of a market to host large numbers of visitors and its general destination appeal. Table 5-12 shows a summary of skier days in peer ski resorts for three between fiscal years 1999 and 2001. Table 5-12 Skier ®ays in i'eer Ski Resorts Market 2001/02 2000/01 1999/00 Vail' 1,536,024 1,645,902 1,371,702 Snowmass 676,505 740,241 707,600 Telluride 341,370 334,506 309,737 Banff 540,000 350,000 490,000 Keystone 1,069,111 1,230,100 1,192,198 Whistler-Blackcomb 2,240,000 2,180,000 2,160,000 PeerAverageZ 973,397 966,969 971,907 Subject % of Average 158% 170% 141% Sources: Colorado Sld Company USA Vail is one of the busier ski resorts among the peer markets with over 1.5 million skier days. Some of the markets also have other nearby ski resorts the further augment the level of skier days. For instance, Vail has Beaver Creek nearby and Snowmass is dose to Aspen. If the number of skier days at nearby Beaver Creek is included, the total for the Vail are increases to over 2.2 million. f~opula~i®rt The local population is a much less important factor for resort conference centers relative to potential event demand than in more typical market areas. However, the local area population does have the potential to support local revenue generating events that can help improve the financial operations of a facility. Although there is no duect correlation between population and the demand for events, this data reveals trends in the overall economic climate of an area and its ability to support both local public events and provide and maintain sufficient visitor-related infrastructure and attractions. High population or growth rates can indicate significant capacity to support local public events and a likelihood that the area will add to its existing urban attractions. Strong population growth also suggests an increasing commercial and fiscal base to support conference facilities. Population changes often HVS Convention, Sports fd Entertainment DRAFT Uail Convention Center Business Plan Peer Market Analysis 5-18 the main ballroom space wasri t designed to enable trucks to back directly up to it for ease of loading and unloading. The demand for exhibits in this main ballroom space has far exceeded the expectations of those who originally designed the facility. The City of Monterey includes the operations of the conference center in its overall public facilities budget. The City's financial statements include total for facility revenue, as shown in Table 5-10. Table 5-10 Monterey Conference Center Annual Operating Revenue Year Revenue 99-00 1,428,365 00-01 1,545,600 01-02 1,280,387 02-03 (prof.) 1,503,494 Average 1,439,462 Source: Monterey Conference Center According to information obtained from management staff at the facility, the annual operating subsidy for the facility has averaged about $1.5 million recently. Operating expenses of just over $3 million would have produced such a deficit in fiscal year 2001-2002. Financial Operating Estimated financsal operations were only available for selected peer resort Summary conference center facilities, as many of them are privately managed and do not release such data. Table 5-11 shows a summary of estimated revenues and expenses of the facilities for which such data was available. Table 5-11 Estimated Revenues and Expenses for Selected Peer Resort Facilities Expenses / I(eystone' Telluride Monterey Banff Revenues $6,972 NA $1,503 $30,142 Expenses $8,668 NA $3,003 $30,782 Net Income (Loss) ($1,696) ($600) ($1,500} ($639) ~ Does not include surcharges or resort allocations Sources: Individual facilities & NVS Skier Days Each of the peer mazkets, except for Monterey, relies on the ski industry for a considerable portion of their overall tourism demand. The volume of skier HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5 17 ~.~.~ figure 5-4 fl~onferey Conference Center Number of Events by Demand Segmenf ome< SMERFE 1Q2 +++ +• ..P. ++ ++~i+i~~}ti { Co~{wrate Assodation 62 79 Source: Monterey Conreience Cenfer The other category is comprised largely of municipal events and local community use. The Monterey Conference Center tracks the number of groups and the total attendance the facility accommodates, as shown in Table 5-9. lrable 5-G fNonterey Conference Center Number of Groups and Attendees Year Groups Attendees % Changein Attendees 99-00 362. 602,398 -- 00-01 408 565,560 -6.1% 01-02 280 469,070 -17.1% 02-03 210 383,923 -18.2% Average 315 505,238 Source: MontereyCenlerenceCenter The number of conference center attendees has declined significantly in recent years. The downturn in the economy and the State of California's budget crisis have contributed to this decline as associations and corporations have slashed expenses on meetings and overall travel. Management reports that health care and law groups are two of the leading sectors for group demand at the faality. Any group seeking to book events in the facility 90 days out or more must require sleeping rooms, otherwise the dates will be left open for other events that generate room nights. Management praised the overall layout of the conference center and the availability of the 496-seat auditorium. Additional plans call for renovating the nearby 1,200-seat State Theater. If the facility has a shortcoming it's that HVS Convention Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Markef Analysis 5-16 Table 5-8 ~ ~o~ Monterey Conference Ce nter Size ~ Ca acity b Function Space Size # of Capa city in # of People 10'X10' Area Square Exhibit Banquet Theater Reception Classroom U-Shape Feet Booths Serra Ballroom 19,600 98 1,620 2,178 2,063 1,342 523 Serra I 11,200 56 926 1,244 1,179 767 299 Serra II 8,400 42 694 933 884 575 224 Steinbeck Forum 5,260 26 -- 494 -- 494 DeAnza Ballroom 10,665 53 881 1,185 1,123 730 284 DeAnzal 3,275 16 271 364 345 224 87 DeAnzall 3,275 16 271 364 345 224 87 DeAnzalll 4,115 21 340 457 433 282 110 Ferrante Room 2,223 184 247 234 152 59 Ferrante I 741 -- 61 82 78 51 20 Ferrante II 741 - 61 82 78 51 20 Ferrante III 741 -- 61 82 78 51 20 Colton Room 1,653 -- 137 184 174 113 44 Coftonl 551 46 61 58 38 15 Coftonll 551 -- 46 61 58 38 15 Colton III 551 46 61 58 38 15 Larkin I 475 - 39 53 50 33 13 Larkin II 600 - 50 67 63 41 16 Dana 500 - 41 56 53 34 13 Total Function Area 40,976 178 2,952 4,464 3,760 2,939 952 Source: HV5 The Serra Ballroom, the largest space in the facility, offers 19,600 square feet and can accommodate a banquet of up to 1,620 people. According to facility management, the conference center functions primarily as a host for Stai:e of California events. National demand has been relatively low, which management partially attributes to the size of the main ballroom relative to larger resort conference centers. Events come from a mix of association, corporate, and SMEIZFE demand, as shown in Figure 5-4. FNS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 515 The Town of Whistler owns the facility and contracts with Tourism Whistler for its operations. An assessment on area hotels, which is based upon the number of rooms and other factors, helps support the operating and marketing costs of the facility. Management estimates that in the past, prior to the recent expansion and upgrade, the faality generated approximately 50,000 room nights annually. Figure 5-3 shows the estimated average annual distribution of room nights by demand segment prior to the recent expansion and upgrade. ~iguee 5-3 Disteibution off IMhistler Confeeence Centee Room Nights by Segment co~~te 5,000 + SMERFE .i~!~+a++ 15,000 +~~+~++++~+a* y++++++ ++++++++ +++++++++++++++ +a+a+r+~+i+++~++ Incentive/ Other 2,000 Assoeia0on 27,500 Source: Tourism Whistler Corporate demand is down significantly in recent years and association demand accounts for approximately 55 percent of the total business mix at the conference center. Monterey Conference Center The Monterey Conference Center offers close to 41,000 total square feet of function space. Table 5-8 shows the size and capacity by function space at the Monterey Conference Center. HVS Convention Sports F~ Entertainment DRAI-'T Vail Convention Center Business Plan Peer Market Analysis 5-14 Table 5-7 Whistler Conference Center Size & Capacity by Function Space Size # of Capacity in # of Pe ople Area Square 10'X10' Exhibit Banquet Theater Reception Classroom U-Shape Feet Booths Sea to Sky Ballroom 16,500 . 83 1,364 1,833 1,737 1,130 440 Sea to Sky Ballroom A 7,032 35 581 781 740 482 188 Sea to Sky Ballroom 8 4,565 23 377 507 481 313 122 Sea to Sky Ballroom C 4,845 24 400 538 510 332 129 Sea to Sky Ballroom A/B 9,220 46 762 1,024 971 632 246 Grand Foyer 4,258 21 352 473 448 292 114 Mountain View 1,080 - 89 120 114 74 29 WedgemounlA/B 825 68 92 87 57 22 Wedgemount A 405 33 45 43 28 11 Wedgemount B 420 35 47 44 29 11 Sae Valley 405 - 33 45 43 28 11 Spearhead A/B 887 73 99 93 61 24 Spearhead A 405 33 .45 43 28 11 Spearhead 8 482 - 40 54 51 33 13 Fitzsimmons 1,589 131 177 167 109 42 Harmony A/B 1,897 157 211 200 130 51 Harmony A 946 - 78- 105 100 65 25 Harmony8 951 -- 79 i06 100 65 25 Garibaldi A/B 2,348 -- 194 261 247 161 63 Garibaldi A 1,143 94 127 12D 78 30 Garibaldi B 1,205 100 134 127 83 32 Tantalus 696 - 58 77 73 48 19 Black Tusk 676 - 56 75 71 46 18 Symphony (Boardroom for 12) - -- -- -- -- -- -- Rainbow Theatre 3,300 - - 300 -- -- Total Function Area 34,403 104 2,502 3,664 3,187 2,075 809 Sour ce: HVS HVS includes th.e Grand Foyer in with the rentable function space at the facility because ii: is designed to serve as a high-end function space as well as prefunction space. The capacity of Sea to Sky Ballroom has grown to over 1,800 people theater style. The Mountain View room is a new glass enclosed conservatory that will provide natural light.and views of the mountains with enough space to serve 89 people banquet style. The expanded facility can handle events with as many as 2,000 attendees. Management expects that peak room nights for events will be in the 1,200 to 1,500 range. The market has a total of approximately 5,200 lodging rooms. The peak season for the facility has always been the spring when many continuing educational events occur. HVS Convention, Sports Fj Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-13 Table 5-6 shows a summary of key facility attributes before and after the upgrade and expansion project. liable 5-Da Summary of Whistler Conference Center Renovation and Expansion Project Facility Attribute Before Expansion After Expansion Function Space SF 25,000 34,403 Ballroom SF 13,600 16,500 # of Meeting Rooms 13 19 Business Centre Capacity None Yes Estiamted Economic Impact $18.5 Million in 2001 $25 Million in 2004 Source: Whistler Conference Center The emphasis of the improvement project was to increase the total amount of function space and augment its flexibility, rather than on creating a significantly larger single ballroom space. The expansion increased the size of the main ballroom by 2,900 square feet to 16,500, which is still smaller than the largest single spaces at Keystone and Monterey. Table 5-7 shows the size and capacity by function space at the expanded and renovated Whistler Conference Center. FIVS Convention, Sports £~ Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-12 concerts with bands promoted by a local radio station, fundraisers, and festivals including a major film festival held annually. When the facility originally opened its mix of group demand was 75 percent corporate. However, the demand for corporate events has declined dramatically with the downturn in the economy and now the group demand is composed of a more balanced mix of corporate (30 percent), association (40 percent), and Social, Military, Educational, Religious, Fraternal, and Entertainment (S~MERFE) demand (30 percent). The typical group size for association events is approximately 200 attendees and attendance at corporate events runs between 75 and 120. The facility's 6,000 square foot main ballroom divides into three sections. Management indicates that. the primary shortcoming of the facility is its lack of breakout meeting space, particularly small rooms that can accommodate 12, 14, on up _ to 30 people. Greater flexibility in the limited breakout meeting space the facility does have would greatly improve the marketability of the facility and its ability to effectively accommodate a wider array of events. Prior to shifting the responsibility of marketing-the conference center to the area's convention. bureau, the facility was running an annual operating deficit of approximately $800,000. Farming out the group sales activities has reduced the annual operating deficit of the facility to approximately $600,000, although the Town now pays the bureau a fee for marketing the facility. Whistler Conference Center The Whistler Conference Center recently underwent a significant upgrade and expansion. The re-opening reception for the facility occurred on September 27, 2003. The telecommunications firm TELUS has signed a 10- year agreement with Tourism Whistler, which gives TELUS naming rights to the Whistler Conference Centre and designates TELUS as the preferred supplier of Tourism Whistler's telecommunications needs. The renovation started in October 2002 was a $10.5 million (Canadian) project that modernized the building and increased capacity. The project strived to utilize strong environmental practices in its construction. The new Grand Foyer showcases the facility's 40-foot Rumford fireplace. A new roof with design elements indigenous to Whistler's mountain resort aesthetics is also part of the renovation. Sustainable building materials have been used in the renovation of the facility such as natural or recycled fiber carpets, certified wood products, and high efficiency lighting systems. Special deconstruction techniques and flee recycling of materials helped to minimise waste. HVS Convention, Sports & Entertainment DRAFT Uail Convention Center Business Plan Peer Market Analysis 5-11 conference center to the Telluride & Mountain Village Convention & Visitors Bureau in the fall of 2002. The facility has just less than 11,000 square feet of function space and its largest single room, the Mountain Village Ballroom, has 6,069 square feet of space. Table 5-5 shows the size and capacity by function space at the Telluride Conference Center. fable 5-5 telluride Conference Center Size & Capacity by Function Space Size # of Capacity in # of People Square 10'X10' Area Feet Exhihit Banquet Theater Reception Class room U-Shape Booths Mountain Village Ballroom 6,069 30 502 674 639 416 162 East Ballroom 2,120 11 175 236 223 145 57 West & Center 3,947 20 326 439 415 270 105 Center Ballroom 1,725 9 143 192 182 118 46 West Ballroom 2,222 11 184 247 234 152 59 Klammer Boardroom 732 - 60 81 77 50 20 Fallon Boardroom 367 30 41 39 25 10 Chipeta Boardroom 312 - 26 35 33 21 8 Mezzanine 1,189 98 132 125 81 32 Lobby 1,980 164 220 208 136 53 O(iice 312 26 35 33 21 8 Total Function Area 10,961 30 906 1,218 1,154 750 293 Source: HVS When the facility is configured at its maximum divisibility it offers nine separate functions spaces. The Telluride Conference Center is a few minutes from Telluride Regional Airport, but the closest major airport, in Albuquerque, New Mexico, is over a seven-hour drive away. There is a Wyndham Hotel across the street with 174 rooms and the nearby Mountain Lodge has an additional 250 units: Additional rooms are available at the Inn at Lost Creek, which has 35 units. According to interviews with both management and CVB staff, the facility primarily hosts local events and has not been as effective in attracting conferences and generating room nights as originally hoped. The preponderance of local events motivated the Town to take the facility's liquor license in house to increase the net revenue to the facility and help reduce its operating deficit. Most of the event bookings are occurring no further than three months out. The facility hosts various entertainment events including HVS Convention, Sports £> Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-10 Table 5-4 Snowmass Conference Center Size & Capacity by Function Space _ •Size Capacity Area Square I Banquet Theater Reception Classroom U-Shape Feet SNOWMASS BALLROOM Anderson Sectian Carroll Room Erickson Room Sinclair Roam Hoaglund Room Hoaglund + Anderson Hoaglund + Erickson Erickson+Carroll+Sinclair Rooms BEDFORD BALLROOM Section.A Section B JANS AUDITORIUM KEARNS ROOM SNOBBLE ROOM Total Function Area 0,823 894 1,203 1,139 741 289 4,568 378 508 481 313 122 1,031- • 85 115 109 71 27 932 77 104 98 64 25 932 77 104 98 64 25 3,337 276 371 351 ,229 89 7,905 653 878 832 541 211 4,269 353 474 449 292 114 2,918 241 324 307 200 78 4,400 364 489 463 301 117 2;180 180 242 229 149 58 1,890 156 210 199 129 50 956 -- 83 -- -- -- 1,670 .138 186 176 114 45 550 45 61 58 38 15 8,399 1,441 2,022 1,836 1,194 466 Source: HVS The largest space, the Snowmass Ballroom, has 10,823 square feet of space, enough room fore. a banquet of up to approximately 895 people. As the first mountain resort conference center built in the region, the facility is considerably older than its competitors in other mountain resorts and is begging to show some signs of its age. The Town of Snowmass staff reports that conference business at the facility has declined significantly in recent years, by as much as 60 percent by some accounts. Town staff estimates that the facility attracted approximately 50,000 room nights annually as recently as 1998. The Town is responsible for non- group marketing activities and the Snowmass Village Resort Association is the sole marketer of the conference center. Telluride Conference Center The Telluride Conference Center is located in Mountain Village, Colorado, which is in the Southwest portion of the State. The Town of Mountain Village developed the facility, which opened on August 5, 1999. The Town owns and operates the facility, but transferred the responsibility of marketing the HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-9 facility is that it lacks attached lodging rooms or rooms within a short walking distance. Vail Resorts owns and operates the facility. A set of assessments supports the financial operations of the center. Conference center lodging guests pay a 10 percent surcharge on their room rates. In addition, Keystone has a 5.9 percent surcharge on any type of good or service purchased in the resort, which works much like a municipal sales tax. Some businesses with older leases in the resort still pay the old 4.7 percent rate. Without the revenue from these assessments and surcharges, which amounted to $4.9 million, the Keystone Conference Center ran an operating deficit of approximately $1.7 million in fiscal year 2003, excluding selected report allocations like road maintenance and destination marketing that are typically not included in the financial operations of conference centers. Snowmass Conference Center Snowmass Village is a ski resort area located less than ten miles from Aspen. The Snowmass Conference Center, located in Snowmass Village, serves as the primary conference center for the Aspen Snowmass market. The Town of Snowmass Village sold the conference center to the Snowmass Village Resort Association in 2001 for the amount of the outstanding debt on the faality. The association now owns and operates the facility. There are approximately 1,300 lodging units that belong to the association and directly support the demand for group room nights the conference center generates. The Town estimates that there are an additional 303 lodging units. The association charges an assessment to member lodging properties that helps to fund the conference center's operations. The conference center has 18,399 squaze feet of function space divisible into 11 separate function rooms, as shown in Table 5-4. HVS Convention, Sports f~ Entertainment DRAFT t/aii Convention Cenfer Business Plan Peer Market Analysis 5-8 Corporations and medical groups account for a large portion of the facility's overall group demand. Management estimates that as much as 60 percent of group demand r_omes from corporate and medical groups. The facility tracks the estimated number of room nights by specific demand segment, as shown in Figure 5-2. Figure 5-2 Estimated Group Room Nights by bemand Segment for Keystone Conference Center Fiscal Year 2002-03 Government 24,649 +~++Ta+i'++++i+ +++ •++• +++*+++4+OsO+O+++ ++a+~ +a + Othef ~: 2,958 Corporate 34,509 Association 19,719 Source: Vad Resorts The other category includes social events such as weddings and family reunions. The demand for medical group events and continuing education is heavier in the ski season a:nd can account for a many as 15,000 room nights during this three-month period. The small amount of international group business at the facility also occurs during the ski season. Corporate demand is the leading source of event activity in the summer. The typical event size for the corporate and association groups is 250 to 300 attendees. Some of these events include exhibits with up to 50 exhibitors. It is more common for exhibits to include booths in the non-season and tabletop displays during the ski season. In addition to conferences, the faality also hosts one tradeshow each year, a homebuilders' show. Two annual fundraisers also draw primarily upon local attendees. The Wine in the Pines event attracts approximately 1,000 attendees and the Ski Ball attracts around 700. Other smaller local events also occur throughout the year. There are two hotel properties in the resort that offer 150 and 100 rooms, but the majority of the total of 1,300 available lodging units is comprised of condos. Management reports that the primary marketing challenge of the FNS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-7 Fable 5-3 keystone Conference Cen#er Size & Capacity by Function Space Size # of Capacity Square 10'X10' Area Feet Exhibii Banquet Theater Reception Classroom U-Shape - Booths COLUMBINEBALLROOM 19,800 99 1,636 2,200 2,084 1,356 528 Grays Peak 6,600 33 545 733, , 695 452 176 Grays, Peak l 2,200 11 182 244 232 151 59 Grays Peak II " 2,200 11 182 244' 232 151 59 Grays Peak'lll 2,200 11 182 244 232 151 59 Longs Peak 6,600 33 545 733 695 452 176 quandary Peak 6,600 33 545 733 695 452 176 Quadary Peak h 2,200 11 182 244 232 151 59 `"tluadary PeaKll 2,200 11 182 244 232 151 59 Quadary Peak III 2,200 11 182 244 232 151 59 Colorado Rockies Ballroom 16,000 80 1,322 1,778 1,684 1,096 427 Red Cloud Peak 4,000 20 331 444- 421 274 107 Shavano Peak 4,000 20 .331 444, 421 274 107 Crestone Peak 4,000 20 331 444 421 274 107 Crestone Peak I 1,000 5 83 111 105 68 27 Crestone Peak II -1;000 5 83 111 105 68 27 Crestone Peak III 1,000 5 83 111 105 68 27 Crestone Peak N 1,000 5 83 111 105 68 27 Torreys Peak 4,000 20 331 444 421 274' 107 ToReys Peaky 1,000 5. 83 111 .105 68 27 Torreys Peak II 1,000 5 83 111 105 68 27 Torreys Peak III 1,000 5 83 111 105 68 27 Ton-eys Peak N 1,000 5 83 111 105 68 27 Crestone Terrace 1,780 -- 147 -- 187 __ __ Shavano Terrace 3,500 -- 289 -- 368 -- -- Castle Peak 3,950 -- 326 439 416 271 105 Castle Peak 1 1,000 -- 83 111 105 68 27 Castle Peak II 700 -- 58 78 74 48 19 Castle Peak III 1,000 -- 83 111 105 68 27 Castle Peak IV 700 -- 58 78 74 48 19 Belvedere 3,950 -- 326 439 416 271 105 Boardroom 480 -- -- -- _ __ __ Total Function Area 44,180 179 3,610 4,856 4,600 2,994 1,165 Source: HVS The total function space at the facility can divide into 25 separate rooms. The large number of breakout rooms and the two large ballroom spaces give the facility a great deal of flexibility. However, the fact that the two larger ballroom spaces are separate limits the ability of the facility to host single larger events. HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-6 conduct leadership and educational seminars at the facility throughout the year. The Banff Centre also has several facilities for arts performances, including a 900-seat theater venue. The facility hosts considerably more association and university events than corporate events. In fact, the Banff Centre has a policy of not accepting private, for-profit groups unless the primary purpose of their event is educational. Most of the event demand at the facility comes from Western Canada, although they do attract some overseas groups, particularly from Japan. The Banff Cenfi~e runs as anon-profit organization and receives roughly 40 percent of its operating budget from government sources. The remainder of the operating budget from the facility comes from fundraising activities and private donors and the revenue from the guest rooms, the conference facilities, and the tuition-based programs that operate at the venue. Keystone Conference Center The Keystone Conference Center located in Keystone, Colorado is east of Vail, approximately 99 miles from Denver International Airport. The facility offers 44,180 square feet of function space. A recent $11.25 million expansion added a second main 19,800 squaze foot ballroom space to the facility. Table 5-3 shows the sire and capacity by function space at the Keystone Conference Center. HVS Convention, Sports £a Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-5 Table 5-2 i$ iianff Centre Size & Capaci by Function Space 2 of 2 Area Sae # of Capacity in # of People Square 10'X10' Feet Exhibit Banquet Theater Reception Classroom U-Shape Booths MAX BELL BUILDING Auditorium 4,488 -- 330 -- -- - MB 251 1,102 91 122 116 75 29 MB 252 2,040 - 169 227 215 140 54 MB 253 1,248 103 139 131 85 33 MB 150 990 82 110 104 68 26 MB 151 252 - 21 28 27 17 7 MB 152 228 19 25 24 16 6 MB 153 228 19 25 24 16 6 M8154 190 16 21 20 13 5 MB 155 244 - 20 27 26 17 7 MB 156 600 50 67 63 41 16 MB 157 247 - 20 27 26 17 7 MB 158 475 - 39 53 50 33 13 MB 159 1,040 -- 86 116 109 71 28 MB Lounge 744 61 83 78 51 20 TRANSCANADA PIPELINES PAVILION PAV 201 1,119 92 124 118 77 30 PAV 202 657 -- 54 73 69 45 18 PAV 101 140 12 16 15 10 4 PAV 102 140 - 12 16 15 10 4 PAV 103 140 12 16 15 10 4 PAV 104 140 12 16 15 10 4 PAV 105 140 12 16 15 10 4 PAV 106 140 - 12 16 15 10 4 PAV 107 215 -- 18 24 23 15 6 PAV 108 118 10 13 12 8 3 Total Function Area 52,814 46 2,228 4,526 4,961 2,825 1,097 Source: HVS The largest single space is located in Donald Cameron Hall and has 5,879 square feet. The Banff Centre features 414 of its own lodging rooms. The Professional Development Centre offers 171 bedrooms and suites with full hotel amenities. In addition, Lloyd Hall, a converted university residence, has 177 bedrooms. Smaller halls offer a total of 66 additional bedrooms. An ongoing renovation of some of the lodging at the facility has some of the rooms unavailable at certain times. The Banff Centre serves a number of roles in the region, besides hosting conferences. The facility is home to festivals such as the annual Mountain Film Fest. There is also a large arts festival every. summer. Several groups ]iVS Convention Sports & Entertainment DRAFT Vail Convention Center Business Pian Peer Market Analysis 5~ function halls. Table 5-2 shows the sizes and capacities of individual halls and function spaces. Table 5-2 A Banff Centre Size & Capacity by Function Space (1 of 2) Sae # of Capacity in # of People Square 10'X10' Area Feet Exhihit Banquet Theater Reception Classroom U-Shape Booths DONALD CAMERON HALL The Banff Centre Dining Room 5,879 29 486 653 619 403 157 Main Floor 3,864 19 319 429 407 265 103 Meaanine 1,072 -- 89 119 113 73 29 Private Function Room 3-5 3,225 16 267 358 ~ 339 221 86 Private Function Room 3 989 82 110 104 68 26 Private Function Room 4 989 82 110 104 68 26 Private function Room 5 1,012 -- 84 112 107 69 27 Private Function Room 6 1,786 - 148 198 188 122 48 LLOYD HALL Bourgeau Lounge 2,070 171 230 218 142 55 THEATRE COMPLEX Eric Harvie Theatre -- -- -- 959 -- -- -- Margaret GreenhamTheatre -- 246 -- -- The Club 2,040 -- -- -- 215 -- -- LF 117 504 -- -- 53 35 13 LF 121 870 - -- -- 92 60 23 LF 122 2,052 - -- -- 216 141 55 LF 124 2,052 -- -- 216 141 55 LF 123 870 -- -- 92 60 23 ~ LF 217 270 -- -- 28 18 7 LF 221 870 -- -- 92 60 23 LF 222 2,943 -- •- 310 202 78 LF 223 870 -- -- -- 92 60 23 LF 224 2,943 -- -- -- 310 202 78 .PROFESSIONAL DEVELOPMENT CENTRE Royal Bank Flnancial Group Meeting Room 615 51 68 65 42 16 BP Canada Energy Company Meeting Room 1,320 -- 109 147 139 90 35 Petro-Canada Meeting Room 615 - 51 68 65 42 16 Lobby Lounge 1,300 - -- -- 137 -- -- Second Floor Lounge 645 -- -- 6S -- -- Canadian Natural Resources Ltd. Lounge 645 - -- -- 68 -- - The Molson Companies Ltd. Lounge 1,300 -- -- 137 -- -- Video Conference Room (Boardroom for 8) 300 -- -- -- -- -- -- Source: HV S HVS Convention, Sports & Entertatnment DRAFT Vail Convention Center Business Ptah Peer Market Analysis 5-3 square feet. Whistler has the largest supply of lodging units at approximately 5,200. Figure 5-1 graphically shows the square feet of function space in the largest single space and the remaining amount of space in each resort conference center. Figure 5~1 Square Feet of Function Space in Peer Resort Conference Center Facilities `l ~ } 52,814 BeMf ' . Y Keystone .~,~ ~ aa,leo Monterey 40,978 Whistler ~ 34,403 Srunvmeea ~ < ta,399 ®l.argestSpace 6 Other Function Space Telluride 10,987 0 10,000 20,000 70,000 40,000 50,000 60,D00 Sources: Respective Facilities 8 HVS The conference centers in Keystone, Monterey, and Whistler each have similar facility programs with a ratio of breakout space to total function space of 52 to 55.2 percent. ®escr6ption o$ Peep HVS contacted the management staff of each of the peer resort conference resort Conference centers and conducted interviews to collect information on the facilities and renters their operations. Banff Centre-Banff, Alberta The Banff Centre began as a conference facility for the University of Calgary. , Now as a municipally run venue, the Banff Centre has 32,595 square feet of function space. The facility is in a campus-type setting with several different HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Business Plan Peer Market Analysis 5-2 Each of the markets will not meet all of the preceding criteria, but by using these criteria HVS is able to develop a list of markets that are particularly informative for assessing the event potential.in Vail. HVS does not intend for the list of peer markets to include all of the markets Vail will compete with for events, but rather a subset of primary peer markets and facilities that are particularly informative regarding Vail's event potential. For instance, any market with a conference center or hotel with conference space will compete with a wide variety for conference events. However, simply because Vail competes with such cities for events does not mean that comparisons between their populations, air service, and other factors are relevant to the potential event demand for Vail. The intent of the market comparisons that follow is to quantify some objective factors that can serve as indicators of the relative demand potential.. of Vail and the appropriate conference center facility program necessary to achieve this potential. In addition, comparisons regarding the supply of available hotel rooms will enable the assessment of the ability of the existing hotel .supply to accommodate potential future demand. Summary of Peer Table 5-1 shows the selected resort facilities, key characteristics of their Resort Markets and function space; and the area supply of lodging rooms. Facilities Table 5-1 Summarv of Peer Resort Market Facilities Facil'dy Square Feet of Meegng Space Largest Single Space Largest Room Banquet Capacity Maximum Number of Meeting Rooms Lodging Units in Market Area Banff Centre 52,814 5,879 486 53 4,364 Keystone Conference Center 44,180 19,800 1,636 25 1,300 Montere Conference Centrr 40,976 19,600 1,620 15 4,500 Snowmass Conference Center 18,399 10,823 894 10 1,300 Telluride Conference Center 10,961 6,069 502 9 1,362 Whisller Conference Centrt: 34,403 16,500 1,364 19 5,200 Peer Facility Average 33,622 13,112 1,084 22 3,004 Sources: Major Exhibit Hall Directory 2002 and respective facilities The conference centers have an average of over 33,000 square feet of function space and a largest single function space of approximately 13,100 square feet. The Banff Centre has the most total function space at 52,814 square feet, but is set up as a campus and has a large amount of total function space located in several small breakout spaces in a number of different buildings. The Keystone Conference Center has the largest single event space at 19,800 FNS Convention, Sports fr Entertainment DRAFT Uail Convention Center Business Plan Peer Market Analysis 51 Peer Resort Market and Facility Analysis One method of estimating the demand potential and facility needs of a community is to compare it to a set of peer markets in order to determine whether there are any obvious opportunities or deficiencies that indicate how effectively a community should be able to attract and accommodate events. A combination of objective data and subjective comparisons is necessary to accurately assess the relative market potential of various communities. This peer resort market and facility analysis is one of several factors that HVS considers when developing its facility recommendations and demand and operating estimates. HVS compared Vail to a set of resort communities with conference centers. None of these peer resort markets may completely match the combination of world-class skiing and an attractive village atmosphere that exists in Vail. However, they each have certain similarities that provide opportunities to assess the relative market potential of a conference center in Vail. HVS selected six resort peer markets to assess as part of a comparable demand analysis. HVS based the selection of peer markets on: The leading role of tourism in the area's overall economy, Geographic location (cities located in the Rocky Mountains when possible), Accessibility of skiing, Existence of a stand-alone conference center without attached lodging units, and Markets that function as national and/or international tourist destinations. HVS Convention, Sports £d Entertainment DRAFT YkiI Conference Center Business Plan LodeinR Analysis 4-5 lodging for conference center groups will likely be at different times of the year. Figure 4-3 shows the seasonal trends in occupancy rate in the Vail market between 1997 and the first three quarters of 2003. Figure 4-3 Seasonal Occupancy Trends, 1997-2003 (Through September) HVS Convention, Sports & Entertainment DRAI~'T Vail Conference Center Business Plan LodQinAAnalysis 4-4 the larger properties. Table 4-1 shows the Vail lodging properties that participate in Hill & Company's data set and the share of total properties in the Town. gable 4-~ dodging Properties in Hill & Company Data Set Number of Number of Fractional Property Hotel Rooms Condo Fee / Total Rooms Timeshare Antlers at Vail 0 92 __ g2 Lion Square Lodge 28 82 -- 110 Lodge Tower/Riva North 48 32 -- 80 Montaneros 0 32 -- 32 Mountain Haus 10 64 -- 74 Simba Resort 0 65 -- 65 Vail Raquet Club 0 96 -- 96 Lodge at Vail 125 0 -- 125 Holiday Inn Chateau Vail 120 0 -- 120 Marriott Resort Vail 344 0 -- 344 Sitzmark at Vail 35 0 -- 35 Vail Cascade Resort & Spa 292 0 -- 292 Manor Vail Resort 52 92 -- 144 Total in Hill & Co. Set 1,054 555 -- 1,609 Total in Vail 1,588 1,195 312 3,095 % of Rooms in Hill Data 66.4% 46.4% 52.0% Sources: Hill & Company, Vail Valley Chamber & Tourism Bureau, IndNidula Properties & HVS The participating lodging properties include nearly two-thirds of the total number of hotel units in Vail. Overall, the data set includes less than half of the available condo units and 52 percent of the total supply. Although it is impossible to know exactly what the overall occupancy and average daily rates are for the overall market, given that a higher percentage of the non- reporting units are condos, it is likely that the actual overall occupancy rate in the market will be lower than the rates reported in the Hill & Company data. As evidence of this, the overall Vail Valley occupancy rate for Hill & Company's data set was 44.5 percent in 2002 compared to 33.7 percent for condos. Despite the fact that the Hill & Company data may slightly overstate overall occupancy in the market, the data does provide valuable insight into seasonal trends in occupancy and ADR. Hill & Company occupancy and ADR data in Vail reveal the degree of seasonality on the overall demand for lodging and how the availability of HVS Convention, Sports f~ Enfertainment DRAFT Uail Conference Center Business Plan Lodging Analysis 4-3 The availability of rooms for group room blocks tracks with the demand for individual leisure room nights. Availability is highest in the shoulder tourism seasons in the spring and early fall when tourism demand is at it lowest points. Group room availability is lowest in the ski season, December through March, and the summer, when many families vacation in Vail to take advantage of the mild mountain climate and the many available outdoor activities. The rriost variation between the weekday and weekend numbers occurs in the peak ski season when weekend group rooms are very scarce due to the high demand for weekend lodging for skiers. The data on group room block availability indicates that even during the peak ski season there is still lodging available .for groups. It should be noted that lodging managers might be tempted to overstate the availability of group room blocks in an attempt to improve the prospects for the conference center. However, HVS interviewed several Vail lodging property managers and asked them specifically about the availability of group room blocks in the ski season. These managers indicated they were reluctant to devote large portions of their rooms to group demand in peak tourism periods. However, they also noted that even in the height of the ski season they still had some excess capacity, especially on weekdays and were supportive of the idea of attracting groups that meet on weekdays during the ski season. When considering the overall availability of rooms in Vail it is important to remember that i-here are a number of condominium units that move in and out of the rental pool for various reasons. One of the primary factors that influence the number of units in the rental pool is the level of lodging demand. If Vail develops a conference center and the overall demand for rooms nights increases, the percentage of condo units in the rental pool will increase. These condo units can serve the additional group demand, but may more often serve individual leisure demand that is compressed away from the hotels due to the higher percentage of hotel rooms devoted to group demand. In addition, as noted in Section 2 of this report, there are 668 new lodging units proposed and in various stages of the development review process. The proposed conference center would likely not open before 2007 and many of these proposed lodging units should be available by then. Occupancy and Average Daily Rate Hill & Company track data on occupancy and average daily rate (ADR) among lodging properties in the Vail Valley. There are 13 properties in the Town of Vail that participate in Hill & Company's research, including most of HVS Convention, Sports f~ Entertainment DRAFT tail Conference Center Business Plan LodAinAAnalysis 4 2 Figure 4-'I lAleekday Rooms Available 4or Group Room Blocks in Vail by Month Figure 4-2 shows the month-by-month variation in the number of weekend lodging room blocks available in Vail. Figure_4-2 ---- 1Neekend Rooms Available for Group Room Blocks in Vail by Month HVS Convention Sports £a Entertainment 1~RAFT Vail Conference Center Business Plan LodQinAAnalysis 4-1 4. Lodging Analysis The planned conference center will be a stand-alone facility and will not include its own attached lodging units. The facility will depend upon a number of proximate lodging facilities for its room blocks. Occasionally, larger events may require the use of rooms in other properties located further away in Vail or even those in nearby Vail Valley resort areas. HVS analyzed data on the lodging market in Vail and the overall Valley. This data reveals trends in rate and occupancy that could influence the overall availability and cost of lodging rooms for potential conference center events. As Vail is a seasonal tourist destination, the occupancy and average daily rate ("ADR") of Vail lodging properties is expected to show signs of significant seasonal variations and ebbs and flows of overall tourism demand in the region. Accordingly, the ability of Vail to provide blocks of committable rooms for conference center events is likely to vary with this seasonal change in room demand and supply and with shifts in overall tourism demand. Room Availability The availability of room.. blocks in Vail will vary considerably between the peak ski season when tourism reaches its highest level and the shoulder seasons in the spring and fall. The Vail Valley Chamber and Tourism Bureau conducted a survey of lodging property managers to estimate what the overall availability of rooms for groups was in each month of the year. The managers reported the number of rooms that they would be willing to commit to a group room block in each month, both for weekdays and weekends. Figure 4-1 shows the month-by-month variation in the number of weekday lodging rooms available for group room blocks in Vail. In other words, this data shows the number of rooms lodging property managers estimate they. axe willing to commit . to group room blocks in advance for events occurring in the conference center. FIVS Convention, Sports f~ Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-24 Interviews with local hospitality professionals and meeting planners reveal a demand for events that exceed the capacity of existing facilities in the Vail market, particularly with respect to the need for single larger venue than currently exists. l:n difficult economic times, the need for meetings, training seminars, corporate retreats, and other such activities does not decrease. However, the capacity for potential users to afford off-site event spaces declines significantly in difficult economic periods. Such cycles are temporary and' facility planning should focus on the longer-term average level of demand for function space. ' Current trends in the meetings industry suggest a shift from national to regional, state, and district events. State associations are increasingly looking towards the development of district meetings and specialized educational programming to keep their members engaged and involved on a more local level. Vail is well positioned to attract state and local demand due to its great reputation as a destination among state event planners and its proximity to the State's two primary population centers in Denver and Colorado Springs. Vail also has a unique destination appeal capable of attracting national events that are looking for new locations to help attract members who base their decisions on whether to attend events upon its location. National association events that look for new destinations with considerable appeal will_ take notice of the many natural attractions the Vail area offers. In the following analysis, HVS will assess Vail' amenities and visitor infrastructure, event planners' perceptions of it. as an event location, and other factors that influence its overall event potential. The answers to these questions will help HVS determine the appropriate type of facility, if any, for Vail and the volume and character of events likely to occur at the recommended facility. IIVS Convention, Sports £~r Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-2i criteria. In an oversupplied market, quality expectations are likely to increase in importance. • Emergence of "Destination Meeting Resorts" - Several resort communities have emerged as primary meeting resort destinations, such as Las Vegas and Orlando, among others. These cities have undergone rapid growth in the supply of hotels and resort conference center facilities that are quickly absorbed with new business. They have in common a strong tourist appeal, attractive climate, and offer an appealing experience for the event attendee. Their ability to attract a large number of attendees is a prime consideration in site selection. Cities with such strong appeal are likely to continue to be the most successfctl conference destinations in terms of overall number of attendees. However, a location such as Vail may present an appealing alternative to the typical warm weather beach of golf-based resort. • Propensity to Travel -Declining cost of travel (in real terms) and the increase in the propensity to travel has been a primary driver of long- term growth in the meetings industry. Recent events that temporarily reduced the ability and desire to travel clearly demonstrated the importance of travel propensity to the industry. However, in the long- run, expansions in the transportation system and continued innovations that reduce costs and increase the ease of travel are likely to support the growth of the meeting industry. • Improved Communications Technology -Over the past decade, industry experts, have engaged in a great deal of speculation that improvements in telecommunications technology will supplant the need for face-to-face meeting. To date, there is no evidence that video conferencing or the Internet has become a viable substitute for in- person communication. Society still prefers person-to-person interaction to exchange ideas and information, and to build relationships. To the extent that improvements in communications technology have contributed to overall economic growth, they have more likely fostered the growth of the meetings industry. Implications for Vail Continued growth in the meetings industry depends largely upon continued growth of the national and local economies. The recent economic downturn has brought difficult times for most industries, and the events and travel industries are no exception. However, planning efforts must focus on the long term, recognizing the realities of economic cycles. HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-22 planners to use smaller markets. Like video conferenang, this effect is likely to be temporary. (merging 9ndust~~ Over the past few decades, the meeting and convention industry has evolved 4rends dramatically from a budding industry to a more mature one that has become an important driver of the national economy. Currently, industry expenditure estimates are over $40 billion per year. As an established industry, the rapid growth of the last four decades is not likely to persist. However, continued evolution and growth can be expected on a controlled scale.'HVS has identified the following emerging industry trends. Supply and Demand Equilibrium -Since the majority of convention facilities involve public funding, the expected relationship between supply and demand found in the private sector does not necessarily hold true for the meeting and convention industry. Public entities are. motivated to develop conference centers because they seek to stimulate local e-conomic activity by attracting new visitors to the community: These public entities are not constrained by the need to achieve a return on ~ investment in the facility. Rather, conference centers are considered "loss leaders' for overall expenditures in the local economy. The consequence of this disengagement between the rationale for an increase in supply and the given available demand has the potential to lead to an overbuilt situation, as currently planned new construction and expansions are completed. However, public entities are constrained by limitations on tax resources to support these developments. If conference centers do not produce the expected economic impacts, the justification for increasing public support of conference center development will become less politically viable. These political constraints are likely, in the long run, to keep the supply of space commensurate with demand. o Quality of Supply - As the industry has matured and competition among cities has become more intense, meeting planner expectations for quality have increased. For example, proximity of full service hotels to conference centers has become a primary determinant in the decision of whether to locate a meeting at a particular location. Cities lacking suitable hotel properties typically lose business to cities with a good "hotel package." Similarly, advanced communications technologies in conference centers are now routinely expected. Furthermore, surveys of meeting planners show that expectations for quality of services has become one of the most important site selection HVS Convention, Sports"f~ Entertainment DRAFT Vail Convention Center Feastbility Study Industry Trends 3-21 ^ 39 percent predicted up to 20 percent decrease in future meetings (Fourth Quarter 2001 and First Quarter 2002), and ^ 24 percent expect no decreases. One of the primary accelerating trends mentioned in the Meeting News survey is the potential increase in alternatives to convention and meeting events, such as video conferencing and other related technologies. Figure 3- 12 shows meeting professionals' views concerning whether organizations will increase their use of electronic meeting methods such as video conferencing and web conferencing. Figure 3-12 Organizations' Future Use of Electronic Meeting Methods Increase Stay aboutthe signficantly _ 2196 ~~~~s+'+~3'`;`~ ~ 16% 4.a. 0 i 4 r ~i ~. } 'a%3'sa! s Increase marginally 21 % Increase somewhat 42% Source: Meeting News A majority of respondents, 58 percent, indicated that as a result of the terrorist attacks they believed that their organization would increase the use of electronic meeting methods. The survey interprets the consensus from interviews with selected meeting professionals to be that the terrorist attacks will only accelerate existing technological trends, as opposed to causing fundamental changes in the industry or these trends. The use of video and audio conferencing boosted dramatically after the September 11~' attacks, with various sources estimating an increase between 10 to 50 percent. Historically, a similar spike in video conferencing usage occurred during; the Persian Gulf War in 1991 that did not have a permanent effect on the attendance at meetings and conventions. Meeting and convention industry specialists have speculated upon another post-attack phenomenon - an increase in regional meetings. The desire for safer and more easily accessible drive-in locations for events may encourage HVS Convention, Sports b Entertainment DRf1FT Uail Convention Center Feasi6iIity Study Industry Trends 3-1A reasons for meeting cancellations. Respondents cited more than one reason when applicable. figure 3-11 Reasons for Meeting Cancellations 50% 45% as% 40% 40% 35% 30% 25% 20% 20% 15% 13% 13% 10% 7% 5% 0°h Organization's Attendees Logistical Organization's Attendees Change In Concern for Reluctant N Issues' Concern for Reluctant to Business Plans Safety Meet or Travel Safety' Meet or Travel' • Evant was scheduled In New York or Washington D.C. Source: MeeNna News Concerns over travel safety were the most prevalent factor in the cancellation of events in the days following the attacks. If the event was planned to take place in New York City or Washington, D.C., 13 percent of the total number of responses from event professionals who cancelled events cited the sponsoring organization's concern for attendee safety. Another 13 percent cited attendee reluctance to travel as a reason for cancellations. However, such safety concerns were not limited to events scheduled for New York and Washington D.C. Of the responses from those who cancelled events occurring in other locations, 46 percent cited the organization s concern for attendee safety and 40 percent cited attendee reluctance to travel, indicating that the events of September 11 were the direct cause of a large majority of event cancellations. An independently produced survey of the meeting industry by the association Meeting Professionals International cited in the discussion produced statistics similar to Meeting News: 24 percent made no meeting cancellations, 49 percent expected to cancel some scheduled programs (of these, 19 percent cited safety issues and 41 percent mentioned financial issues as reasons for cancellation), HVS Convention, Sports & Entertainment DRAFT Uail Convention Center Feastbilify Study Industry Trends 3-19 that attract attendees from throughout the country and the world, the weeks immediately following the attacks brought dramatic reductions in event activity and attendance at events that were held. The interruption in air service forced the postponement of some national and international events. Hotel occupancies, particularly in properties that have a significant amount of group business, were extremely low. In second-tier markets that are oriented more towards state groups, the effects were not as pronounced. Attendees to many state events were able to arrange alternative transportation plans, as evidenced by the increase in car rentals, train and bus ridership during this period. The Meeting News survey asked event professionals whether the terrorist attacks had influenced them to cancel meetings. Figure 3-10 shows the share of responses among four answers the survey provides. Figure 3-10 _ Influence of Attacks on Events One meeting Ona meeting cancelled / no canceled / mwe expected expects future pncellations cancela6ons - +#+#~#+f###r#f## ~### ### ~ #+###ti~i ##~# #.###A • #+#~~~+ No cancelled No cancelled `;, • ~ meetings / meetings / no ' expects tuWre expected cancellations cancellations ~,% 39% Soun:e: Meeting News Among these event professionals, 54 percent indicated that they had cancelled at least one of their events as a result of the terrorist attacks. However, almost 75 percent of the event planners indicated that they did not expect any future event cancellations. When asked whether their organization will be scheduling fewer meetings as a result of the attacks, 29 percent indicated that they expected a decrease in events. In addition, 54 percent of the responding meeting professionals indicated that they expected attendance at their meetings to decrease as a result of the attacks. The survey went on to ask respondents who had cancelled events the reasons for these cancellations. Figure 3-11 shows the most frequently mentioned HVS Convention, Sports £> Entertainment DRAFT Uail Convention Center Feasibility Study Industry Trends 3-18 I-se of ~echnolo911 in Overall, the meetings and conferences industry uses a moderate amount of fleeting facilities technology during events, typically computers with Internet access and audiovisual presentation equipment. The meeting and conference industry lags behind other leading industries in terms of incorporating new technologies. The majority of conventions and conferences still require only basic technological amenities like a laptop or video projectors, items that most facilities possess. Multi-media, whiteboards and videoconferencing are the three most commonly used technologies, as shown in Figure 3-9. Figuec 3-g liechnology Used to ®eliver Meeting Content Simultaneous Keypad Translation Response Whileboards 4% 5% Internet Training 18% 7% Decision-making Software 7% Multimedia 18% : : • • + Vrtual Trade : ++ s~'++ Show video O+++O+ + +.+++«+ + Conferendng + `*++t C0.ROM 17% 13% Source: Successful Meetings, 2000 The variety of methods used for delivering meeting content indicates the need for conference. center facilities to be as flexible as possible in their configurations and to have design elements that enable the use of a wide variety of technologies. The number of different methods suggests that portable elements or easily adaptable elements are preferred to permanent, built-in elements. Implications of ~ In the article titled "The Ground Has Shifted" in the October 1, 2001, issue of Continuing Global Meeting News, Equation Research posted the results of a survey of 722 Conflict on the meeting buyers one week after the September 11th terrorist attacks on New f>~leetings/Conventions York City and Washington D.C. This atrocity had an instant impact on the Indust meetings industry and the willingness of people to travel to events. The survey revealed two trends that may persist: more electronic conferencing via satellite broadcasting and the web, and an increase in regional meetings. The attacks' immediate effects on the convention and meeting industry played out differently in various types of markets. In larger national markets HVS Convention, Sports £i Entertainment DRAFT Uail Convention Center Feasibility Study Industn~ Trends 3-17 Table 3-4 Historical Annual Exhibition Growth -Percent Change Year Exhibition Events Attendees Exhibiting NSF UsedZ Companies 1990 13.7% 25.0% 10.0% 22.2% 1991 4.0% -5.3% 9.4% 3.0% 1992 4.6% 8.5% 0.0% 10.6% 1993 2.6% -5.2°~ 0.0% 5.7% 1994 3.5% 16.4% 8.3% 3.4% 1995 1.5% 36.5% 0.0% 12.Oq° 1996 0.5% -12.9% -3.8% 0.0% 1997 -1.5% 8.9% 0.8% -0.7% 1998 -1.0% 0.0% 11.1% -1.6% 1999. 4.9% -7.3% 7.9% 7.4% 2000 6.2% 9.8% 0.7% 7.0% Average 3.5% 6.8% 4.0°~ 6.3°~6 'Exhibition e vents with more than 30, 000 square feet of exhibit space. `NSF is the net square feet of exhibit space actually rented by exhibitors. Source: Tradeshow We ek Over the past decade, average growth in demand for the events in the Tradeshow Week database has outpaced the ,average growth in supply. This growth reflects the expansion in the overall economy, but it also reflects an increasing utilization of exhibitions as a means of marketing and sales. Various independent surveys of major businesses rank exhibitions as the second or third most common way companies spend their advertising and marketing dollars. However, the recent slowdown in the US economy seems to be having an adverse effect on the supply of tradeshows, although hard data to support this decline is difficult to find. Economic cycles notwithstanding, the overall long-term trend of growth suggests that the supply of events will recover along with an overall economic recovery. Conference centers can sometimes house smaller tradeshows, but such events typically prefer to use convention centers with dedicated exhibit halls. However, the data is relevant to conference center demand in that it underscores the demand potential for exhibits at corporate and association conferences and the need for amulti-purpose main ballroom /exhibit space that can accommodate trade booths as well as banquets. HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-16 Figure 3-8 Share of Event Planners Citing Factors as "!lery Important", Plational vs. Regional National / Intematlonal Meeting Fadfities ~% Quality of Service I 60% Overall Affordability _ 44% Hotel Rooms 42% Facility Type 42% Rotation Policy 7% Membership Appeal 7% Climate 20% ADA Facilities 14 Dining/Entertainment ~ tt OrivingAccessibility 6% 0% 20% 40% 60% 80% Source: ASAE's Association Meefng Trends Regional /State /Local Meeting Fadlities 70% Duality of Service 67% Overall Affordability 68% Membership Appeal ~% Hotel Rooms 42% Rotation Policy 40% Driving Accessibility 39 Fatility Type 36% Climate 18% ADA Facilities 18% Dining/Entertainment 18% 0% 20% 40% 60% 80% Source: ASAE's Associaton Meeting Trends The survey asked respondents whether various site selection criteria were very important. The answers of national /international and regional /state / local event planners were very similaz. The quality of meeting facilities, service, affordability, and hotel room supply are key criteria for both groups. '~radesho~ ~o'ends Table 3-4 shows the historical growth of exhibition events, attendees, exhibiting companies, and net square feet (NSF) used by exhibitors. Tradeshow Week data focuses on lazger consumer shows, trade shows, and conventions in the U.S. and Canada with exhibitions that typically occur in convention and exhibition centers. HVS Convention, Sports Fj Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-15 Figure 3-7 Distribution of Events by Amount of Required Exhihit Space so% as°i° 45 40% 35 % 30 % 27 % 25°~ 20% 1,6% 11% 10% 5% 6% 2% 2% 2% 4% 0% 0 to 99,999 100,000 to 200,000 to 300,000 to 400,000 [0 500,000 to 600,000 to 700,000 + 199,999 299,999 399,999 499,999 599,999 699,999 Source: Tradeshow Week Data Book 2003 Among the events Tradeshow Week tracks, 82 percent use less than 200,000 square feet of exhibit space. This data focuses on events that are somewhat larger than the prime candidates for a conference center, but reflects the fact that the majorit}r of events are towards the smaller end of the spectrum. Event Planner Location Figure 3-8 shows the criteria that convention, association, and meeting event Criteria planners consider as the most important in selecting a destination for their events. FIVS Convention, Sports f> Entertainment DRAFT Vail Convention Center Feastbility Study Industry Trends 3-14 ~een$ Characteris$aCS Various industry organizations track data on different types of events. The International Association of Convention & Visitor Bureaus ("IACVB") conducts research on the distribution of events by sponsoring organization. Figure 3-6 shows the distribution of events identified by the IACVB. figure 3-6 iDistribution o4 Convention Events by Type o6 Sponsoring Organization Exposition / Tradeshow Other 5,~ Medical g^~ 6% Governmental SMERFE' ~ -~'•~ t f % 24% Professional 8 Trade 45% ' Social, military, religious, fraternal, and ethnic Source: IACVt3 Spending Survey Trade and professional events account for the lazgest share of events. The other category includes club and corporate events. Tradeshow Week annually publishes Tradeshow Week Databook, containing information on conventions, tradeshows, and consumer shows that require exhibit space. Figure 3-7 shows the distribution of events by the amount of exhibit space they require. FNS Convention, Sports fr Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-13 Table 3-3 Summary of Conference Center Revenues and Expenses Revenue /Expense Daily $ per $ per SF % of Sales Person Revenue Food & Beverage $24.63 $46.61 59.1% Confrence Services Equipment 2.52 4.76 6.0% Other 12.97 24.54 31,1% Total Conference Services $15.49 $29.30 37.1 % Other 1.55 2.94 3.7% Total Revenues $41.67 $78.85 99.9% Expenses Food ~ Beverage Total Cost of Sales $9.38 $17.76 38.1% Payroll & Benefits 4.10 7.75 16.6% Other 2.10 3.99 8.6% Total Food & Beverage Expenses $15.58 $29.50 63.3% Conference Services Payroll & Benefits 5.33 10.09 , 34.4% Conference Equipment 0.81 1.54 5.3% Other 1.20 2.26 7.7% Total Conference Services Expenses $7.34 $13.89 47.4% Total Departmental Expenses $22.92 $43.39 55.2% Income Before Undistributed Operating Expenses $18.75 $35.46 44.8% Undistributed Operating Expenses Administrative & General $5.85 $11.07 14.0% Marketing Expenses 2.57 4.87 6.2% Energy Expenses 1.08 2.05 2.6% Property Operations and Maintenance 2.33 4.41 5.6% Other 1.08 2.03 2.6% Total Undistributed Operating Expenses $12.91 $24.43 31.0% Income Before Fxed Charges 5.78 10.93 13.9% Fxed Charges 4.45 8.43 10.7% Reserve for Replacemerd of Fxed Assets 0.69 1.29 1.6% Total Expenses $40.97 $77.54 98.3% Net Income Before Income Taxes $0.64 $1.21 1.5% Source: the Compass Repoli The preceding financial operating statement includes only the direct revenues and expenses of a selected set of conference centers. Additional costs such as non-facility destination marketing, transportation expenses, and others that municipal facilities may carry are not included. HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-12 Compass Report, are more commonly associated with convention centers as those facilities feature more exhibition space than do conference centers. Nearly 50 percent of the events booked in conference centers surveyed in the Compass report were approximately one day in length. Nearly 35 percent of the events lasted less than one full day. Figure 3-5 shows the event lengths of the various events booked in the conference centers studied in the Compass Report. figure 3-5 Conference Center Event Length 2-3 Days 11% .«. .:;~«.««•« Less Than A '«+;?q~;+;~ a-s Days ° . Fuli Da :4« . ~~«~^ + p+ ' « 34% .«.. t r One Fufl Day 49% Source: The Compass Report The Compass Report also amassed information on the finances of the conference centers they studied. Overall, conference centers averaged approximately $3.9 million in expenses .in 2001, with $2.1 million of that amount in the form of fixed expenses. Variable expenses amounted to approximately $1.4 million and-.fixed charges and reserves came to $400,000. Table 3-3 shows a summary of conference center revenues and expenses. HVS Convention, Sports fr Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-11 Figure 3-3 Non-Residential Conference Center Event Bookings by Demand Segment UnivJCollege 20% Corporations 66% ~iSi++!+ Govt o.+ +~' Agencies Y 7% Assn. 7% Source: The Compass Report Among the uses of conference centers included in the Compass Report, training sessions and conferences were reported as the most frequent type of use. Figure 3-4 shows the various types of events held in conference centers. Figure 3-4 Conference Center Events 35% 30% 30% 25% o 20% 20% 15% 15% 10% 5% 5% 5% 2% 0% Training Conferences Seminars Tradeshows Retreats Board Other Meetings Source: The Compass Report Training sessions, conferences and seminars are consistent with corporate and educational institution use of conference centers. Tradeshows, which account for five percent of the events at conference centers included in the HVS Convention, Sports £~ entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-IO As attendance has declined, so has the average meeting size over the past 12 years. Conventions drew an average of 1,059 people in 2001, compared to an average attendance of 1,079 in 1989. This figure is cyclical and can fluctuate with other factors in an economic cycle. It peaked in 1995 when the average ~ ~'"~ convention had 1,193 people in attendance. Association meetings drew an average of 89 people in 2001, compared to 116 in 1989. Attendance at corporate meetings is also somewhat lower than it was in 1989 when the average meeting had 67 people. In 2001 the average corporate meeting had 61 people. These average attendance figures, despite minor fluctuations, have been relatively stable during the past decade. IEvent ~h~raCteristB~s HVS summarized various industry data on the size and character of conference center demand, event type, and event length as well as summary income and expense statements for stand alone conference centers-those that do not have attached lodging rooms. Horwath Horizon Hospitality Advisors compiled and analyzed data on conference centers throughout North America for their "Compass Report North America 2002." The annual report tracks trends in conference center event bookings, demand, event types and revenues and expenses, and the figures presented here are based upon operational and financial data from 2001. Among stand-alone conference centers, defined in the report as non- residential centers, corporate events represented the single largest segment of demand, followed by university and college events. Figure 3-3 presents the segmentation of conference center event bookings by demand segment. HVS Convention, Sports & Entertainment DKAFT Vail Convention Center Feasibility Study Industry Trends 3-9 Total attendance in the meetings industry has declined from its peak level in the late 1980s. Throughout the 1990s the number of association meetings has generally declined. Over the past half decade the number of corporate rrieetings has increased slightly and the number. The number of conventions has increased somewhat over this same time period. Table 3-2 shows the average meeting size for these three market segments over the past 2~: years. The compound annual growth rate (CAGR) for each meeting category shows how quickly average attendance increased or decreased over each two-year period on an annual basis. Table 3-2 Average Meeting Size by Event Type Tvoe of Event /Growth 1969 1991 1993 1995 1997 1999 2001 Conventions Average Attendance 1,079 843 907 1,193 1,035 1,060 1,059 CAGR - -11.6% 3.7% 14.7% -6:8% 1.2% 0.0% Associations Average Attendance 116 105 91 86 94 90 89 CAGR - -0.9% -7.2% -2.6% 4.8% -2.6% 0.0% Corporate Meetings Average Attendance 67 62 69 62 64 61 fit CAGR - -0.4% 5.7% -5.2% 1.5% -2.1% 0.0% Source: Meetings and Conventions, 2002 Figure 3-2 Attendance (in Thousands) HVS Convention, Sports f> Entertainmenf DRAFT Vail Convention Center Feasibility Study Indusfry Trends 3-8 For more than a decade there have been approximately one million meetings and conventions annually in the United States. The great majority of these events are corporate meetings. Associations also generate a large number of meetings. For the past twelve years there have been between 10,000 and 12,000 conventions held annually in this country as well. The total number of meetings and conventions has stayed in a somewhat narrow range during the course of the past 12 years. The number of meetings in 2001 represents a slight increase over 1999, although the year 2000 was presumably a peak year that exceeded both 1999 and 2001 in the total number of events. ~$tendance Tends Approximately 80 million people participate in meetings and conventions each year in the United States. Figure 3-2 shows total attendance figures for the meeting industry during the past 12 years. Eiguee 3-1 Totai Wumbee of Meetings (in Thousands) HVS Convention, Sports £d Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-7 Educational Conference Centers Educational and non-profit conference centers are similar to corporate centers, but are owned and sponsored by colleges, universities, or medical centers. Educational conference centers are often located on a college, university, or hospital campus. Because the primary goal of these facilities is to serve-the educational or institutional organization that owns them, location considerations can be led by convenience for the primary user group, rather than potential outside users. Although these facilities sometimes accommodate outside business, they are generally most suitable for educational and institutional uses such as lectures, lasses, training seminars, banquets, and receptions. Resort Conference Centers Resort conference centers provide all of the facilities and services available at executive conference centers, but place a greater emphasis on recreational activities in a resort setting. Although small corporate meetings are the main source of business, recreational activities are regularly scheduled, integral components of the program. In many cases, :resort conference centers have an advantage over executive conference centers. These properties are flexible enough to accommodate both resort guests and more serious meeting attendees. Many meeting planners welcome the opportunity to provide breaks during intensive meetings by scheduling, golf tournaments or other leisure activities. Some companies also use resort conference centers when offering incentive trips for employees and their spouses. Number of Neetings There are more than one million meetings booked in the United States each year by corporations, associations, and convention planners. Figure 3-1 shows the total number of meetings held annually in these three specific meeting segments throughout the past 12 years. : HVS Convention, Sports £r Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-6 roue Maus 4~pes of Industry publications generally categorize conference centers based on the ~onfereoce renters market segment they target. Four specific types of conference centers are most common. The competitive environment is dominated by four types of conference centers: executive, corporate, educational, and resort. ` Given the attractiveness of Vail to event planners as both a resort destination and ideal for corporate /executive meetings, HVS positions the proposed Vail Conference Center as a combination executive and resort conference center.. Executive Conference Centers Executive conference centers are designed to meet the needs of mid- to upper-level executive and managerial meetings. 'These functions may revolve around strategic planning, forecasting and budgeting, sales and marketing, state-of-the-corporation reports, new product introductions, and educational and training seminars. Demand generators include corporations and (less frequently) associations and institutions. Executive conference centers are designed to minimise external noise, congestion, the lure of off- site activities, and similar distractions. Large executive conference centers are often characterized by a "think tank" atmosphere and feature- full audiovisual capabilities, recreational alternatives, and first-class amenities. They can also offer flexible space that is suitable for a broad range of.corporate, association, government, and social uses. Many smaller facilities cultivate a residential ambiance and resemble mansions, retreats, or park-like estates. Corporate Conference Centers Corporate conference centers are similar to executive conference centers; their distinguishing feature is that they are owned and sometimes operated by a specific corporation and are often located on or near grounds of a large company facility. Many corporations have made their facilities available to outside users during periods of low demand. A recent trend has been the conversion of in-house conference .centers to public facilities that cater specifically to the owning company. Corporate conference centers generally give priority to the affiliated company when booking guestrooms and function space, and outside users are treated as secondary business. Efficient accommodation of the needs of the affiliated company is often the primary concern of these centers, rather than profitability. IIVS Convention, Syorts £~ Entertainment DRAFT Yail Convention Center Feasebility Study Industry Trends 3-5 Similar to conventions, tradeshows require exhibit halls and are generally restricted to convention centers, as opposed to hotel or conference center event spaces. Like conventions, tradeshows offer a forum for exchanging industry ideas. Tradeshows are more product and sales-oriented than conventions. They are exhibit-intensive, and exhibitors prefer column-free, single-story, open-space facilities. Exhibitors construct temporary custom booths for product display. Tradeshows typically attract a large number of attendees who originate from outside the host city, but their length of stay is shorter and their average spending lower than convention attendees. Many tradeshows are increasing the amount of rrieetings and other breakout sessions they conduct in order to augment the educational component of their events, attract more attendees, and keep them in the host city for longer periods of time. Consumer Shows -Consumer shows are public, ticketed events featuring exhibitions of merchandise for sale or display. Consumer shows provide a means of product distribution and advertising. Some, such as auto and boat shows, have recreational and entertainment components as well. Consumer shows range in size from small local, specialized shows with a few hundred attendees to large shows with many thousands of attendees. The larger consumer shows may occur in convention centers, shopping malls, fairgrounds, and other public-assembly faalities with large exhibition areas. Most attendees aze local residents, although a few large consumer shows have a regional or national draw. Exhibitors often come from out of town and may follow a series of events occurring in different venues. Site selection considerations for consumer shows include the size and income of the local population, availability of facilities, and the number of competitive shows in the market. Many consumer shows are beginning to incorporate educational seminars, and i:he availability of meeting space is becoming increasingly important for these events. Assemblies -Assembly events usually involve a ceremony, speech, or other similar activity that attracts a crowd of spectators. These events attract anywhere from 200 to 50,000 people or more and many require arena or stadium seating. Assemblies stem from many of the same sources as SMERFE events, but are less likely to involve a food and beverage element. These events do not usually require large amounts of exhibit and meeting-room space. FNS Convention, Sports £d Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-4 SMERFE events are the most common type of events in most civic centers and locally oriented conference facilities. Generally, SMERFE groups are highly price sensitive with respect to hotel room and space rental rates. Corporate and Other Meetings -Corporate meetings include training seminars, professional and technical conferences, sales meetings, shareholder events, product introductions, and management meetings. Attendance ranges up to 100, with an average of fewer than 50. These meetings are held in hotels with meeting space, conference centers, and sometimes in the meeting room blocks of larger convention centers. Corporate meetings usually require meeting rooms or ballroom space, but not exhibition space. Larger functions are sometimes held at convention centers. Corporate meeting planners and attendees prefer facilities with business amenities and a high-quality, professional appearance. Conventions -Associations, professional groups, and other membership organizations hold conventions, with attendance ranging from 300 to 30,000 attendees, the average of which is approximately 800-900. The larger of these meetings typically take place in convention centers with exhibit halls of 100,000 square feet or more. Smaller events are held in hotels and conference centers. Conventions usually consist of a number of concurrent meetings, with a few general sessions. Faality needs include assembly space for general sessions, banquet facilities, and numerous breakout-meeting rooms. Approximately two-thirds of conventions use exhibit space for displays and booths. Conferences -Conferences are events held by associations, professional groups, and other membership organizations. These events do not always require exhibit space, and are otherwise similar to conventions. They require meeting space for general sessions, food service areas, and breakout meeting rooms. Hotels and conference centers host the majority of conferences. Conventions and conferences generate a greater amount of new spending in the area economy than consumer shows and local meetings because a large percentage of attendees originate from outside the local area, typically stay several nights in the host city, and spend money on accommodations, food, retail goods, transportation, and entertainment. Tradeshows -Tradeshows provide a means for wholesalers and retailers to transact business with industry buyers. Trade associations, independent show organizers, and other companies sponsor and produce trade shows. HVS Convention, Sports fd Entertainment DRAFT Uail Convention Center Feasibility Study Industry Trends 3-3 Table 3-1 Event Types and Characteristics Event Types and Related Facility Requiremen ts Event Type Primary Purpose Major Facility Typical Facility Used Requirements Social, Military, Educational, Meeting and/or banquet Religious, Fraternal, 8~ Civic & social Civic center or auditorium Ethnic space Training and Hotels; Conference Centers; Corporate & Other Meetings information Meeting space (minimal) Convention Center Meeting exchange Rooms Information Meeting space and banquet Hotels; Conference Centers; Conferences exchange space Convention Center Meeting Rooms Information Meeting space and banquet Hotels; Conference Centers; Conventions exchange space Convention Centers Conventions with Exhibits Information Exhibition, breakout meeting Convention Centers exchange and sales space, and banquet space Exhibition and breakout Convention Centers; Tradeshows Sales meeting space for some Trademarts; Fairgrounds events Consumer Shows Advertising and Exhibition Space Convention Centers; sales Trademarts; Fairgrounds Combination 5hows• Advertising and Exhibition Space Convention Centers; sales Trademarts; Fairgrounds Information Stage, seating, breakout Convention Centers; Assemblies exchange meeting rooms Arenas; Stadiums; Fairgrounds Stage, seating, lighting, Arenas; Stadiums; Theaters; Concerts and Entertainment Entertainment concession areas, ticket Auditoriums; booths, lobby Convention/Civic Centers A tradeshow with private access is followed by a consumer show with public access. Source: HVS International The following is a description of these various types of events: Social, Military, Educational, Religious, Fraternal, and Ethnic -Events - Referred to as "SMERFE" events, these events include weddings, fund-raising events, educational seminars, religious gatherings, parties, and other community events that have a civic, social, or entertainment purpose. These events typically require a ballroom or multipurpose space where food and beverage services and, in some cases, entertainment can be provided. HVS Convention, Sports & Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-2 include electricity, telecommunications hookups, water, and sometimes, compressed air and natural gas. Meeting or breakout rooms -intended for small groups, individual rooms can vary in size from 500 to 2,000 or more square feet. They aze often divisible into smaller units to provide maximum flexibility. Meeting rooms are characteristically cazpeted and have a high level of finish. Most meeting spaces have flat floors and no fixed seating so that they can be configured for an assortment of meeting styles. Meeting rooms offer variable lighting setups, sound attenuation, and in newer facilities, access to advanced telecommunications technology. Some meeting rooms are designed exclusively for presentations and may have fixed tiered theater style seating and video projection capabilities. Boardrooms are elegant meeting rooms with the permanent installation of a conference table. o Pre-function space -space located just outside of or adjacent to the event space. Pre-function areas support the circulation of pedestrian traffic through the facility, serve as registration areas, and are essential to the control of access to event spaces. Terraces or other signature function spaces can supplement the typical lobby areas. Hypes of N~eettngs end The meetings industry includes several types of events, from large trade and (facility Needs exhibition events to conferences and corporate meetings. Each type of event has unique facility needs. Certain events require large amounts of contiguous space and others require several smaller meeting rooms. A single event may use different types of space, including exhibit halls, banquet rooms, breakout meeting rooms, and theater seating. Event facilities need to offer the proportions of different types of space that are appropriate for their markets. Table 3-1 summarizes the key attributes of various types of meetings, including facility requirements. FNS Convention, Sports £> Entertainment DRAFT Vail Convention Center Feasibility Study Industry Trends 3-1 3. Convention /Meeting Industry Trends The purpose of this section is to describe the convention and meeting industry and analyze trends in the number of events, attendance, and supply of meeting and exposition facilities. The definitions provided herein will aid in understanding the market analysis, and the overview of industry trends will aid in assessing the demand potential for a conference center in Vail. The section concludes with an assessment of the particular implications of these trends for the development of a new hotel conference ceriter in Vail. Facility ChaRacteristies In order to properly accommodate a wide range of events, a conference center facility requires meeting space -divided into both general session space and meeting /breakout spaces -capable of supporting conferences and meetings. Ideally, conference centers also provide pre-function space suitable for attendee registration, kitchen facilities for event catering and presentation equipment suitable for both large group and breakout sessions. The main meeting space should be divisible in order to support simultaneous events. Main Ballroom /Exhibit space - in conference centers the main ballroom. space typically serves as both a large banquet area and an area for exhibits. In order to serve both roles the space requires high ceilings <~nd clear spans with limited numbers of support columns in the morn. The quality level of this space must be sufficient to be appropriate for formal dinners and social functions, but also needs to avoid materials or fixtures that are easily damaged by the level of utilization associated with exhibits. The space should have durable carpeting and appear like a true ballroom rather than an exhibit hall. The space should be divisible with soundproof movable walls. This space does not need to have direct access to loading docks, but such access should be convenient to accommodate larger exhibits, with high doors that allow easy loading. Sound attenuation and sophisticated sound systems are also important features of a ballroom. Close proximity to kitchen facilities is vital for the efficient delivery of food service. Utilities for exhibition booths are usually provided from boxes in the floor or dropped from the ceilings. Utilities typically