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HomeMy WebLinkAbout2007-11-20 Support Documentation Town Council Evening SessionVAIL TOWN COUNCIL EVENING SESSION AGENDA 6:00 P.M. TUESDAY, NOVEMBER 20, 2007 VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1 • ITEM/TOPIC: Citizen Participation. (10 min.) 2. Stan Zemler ITEM/TOPIC: Town Manager's Report. (10 min.) • Construction Update. • Water Quantity/Quality (QQ) Update Staff spoke w/Chuck Ogilby who said he had an upcoming QQ meeting and preferred to report back to Council after that meeting. 3. Leslie~Fordham ITEM/TOPIC: Iron Casting Workshop and Events. (15 min.) ACTION REQUESTED OF.000NCIL: Approve use of AIPP funds for an Iron Casting Workshop and Events. BACKGROUND RATIONALE: Art in Public Places would like to host an Iron Casting Performance in Vail in January, 2008. Twenty artists will demonstrate how the five-thousand year old process of iron casting works, by heating metal in cauldrons and then pouring it into molds made by community members. This would be a three night event, taking place on the north end of International Bridge. On the first two nights, Friday January 18 and Saturday January 19 from 5 to 9 p.m., the artists will demonstrate bronze casting. A grand finale will take place on Sunday, January 20, in which iron will be poured and cast. The artists describe the grand finale as a spectacle and as exciting as an erupting volcano. In addition to the three evening performances, the artists will conduct workshops in December for community members wishing to make their own sculptures. Workshops, for community members to make wax models for casting, will take place in December. Vail schools have indicated a strong interest in participating. The artists responsible for organizing the event teach at the University of Colorado and will instruct workshop participants on how to make models for casting. Artwork produced at the event will be on display at the Vail library. A demonstration .has been conducted for the Vail Fire Department, Police Department and the Town's Risk Manager to evaluate the safety of event. Iron Performances have be~sn staged at the Denver Art Museum and in many public and private locations in Colorado, without incident. The highest level of safety ~r~ill be observed by the artists at all times. The total cost of the event is $40,185, including workshops, materials, event production, advertising, brochures, video and still photographic documentation. Art in Public Places Board Recommendation: Art in Public Places Board members have approved the project budget and believe this will be an exciting event for Vail visitors and residents.. 4. Leslie Fordham 1TEM/TOPIC: The Willows Public Art Obligation. (15 min.) ACTION REQUESTED OF COUNCIL: Approve use of private funds for the purpose the developer has requested. BACKGROUND RATIONALE: Public Art is a condition of Thee Willows development approval. The Town Council allowed Triumph Development to partially satisfy the requirement with <~ contribution to the new fountain in Seibert Circle. In July, the Town Council considered a request from Triumph Development for .the remaining public art obligation, $50,000, to be used by AIPP for a public art series. Inspired by winter festivals worldwide, AIPP is proposing to use the funds, plus a $50,000 donation from Triumph, for an annual visual arts event celebrating the elements of Vail's winter environment. The event, titled Triumph Winterfest, would use ice, snow, illumination, and wind components individually or collectively in combination with other appropriate materials in site specific areas. Winterfest will be a five year program beginning in 2008 with an introduction of Triumph's mission and commitment to the community. The final year of the program coincides with Vail's 50th anniversary in 2012. AIPP envisions the event growing in size and reputation each year and that additional sponsors will contribute to the success of the program. If approved, the first Triumph Winterfest will take place on Gore Creek Promenade beginning January 8, 2008. The event will feature ice sculptures, with an environmental theme, designed by artist Lawrence Argent. Argent is well known for his Big Blue Bear at the Denver Convention Center. Each of the fifteen or more, organic forms will be lit internally .with LED's programmed to change color subtly throughout the evening. Visitors will be invited to find the sculptures that will sometimes be amongst the trees, walk through arches made of ice, sit by the fire pit or at a nearby restaurant viewing the artwork and light show. Winterfest will end when the sculptures melt. The overall budget for the first year is $40,724 including artwork, lighting and brochures to accompany the event. Funding comes from Triumph Development. Additional sponsors are being sought to supplement Triumph's contribution and ensure funding for the next five years. Art in Public Places Recommendation: AIPP Board members believe that the Triumph Winterfest will make a significant contribution to the Town of Vail, provide entertainment and stimulate cultural and economic vitality. 5. Pam Brandmeyer ITEM/TOPIC: Council Committee Appointments. (30 min.) a. Northwest Colorado Council of Governments Board: ACTION REQUESTED OF COUNCIL: Rod Slifer has served as the Board Member on NWCCOG. In the past, Stan Zemler has been the alternate. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Northwest Colorado Council of Governments Board of Directors." The motion should be seconded and voted by the Council. The appointment of the Alternate, if needed, will be similar. VOTING MEMBER. COUNCIL DISCRETION. b. Water Quality/Quantity Committee/NWCCOG Member. ACTION REQUESTED OF COUNCIL: Chuck Ogilby has served as the Council's representative on this committee. Although in the past there has been an alternate for this position, for the past four years there has not. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Appointment Committee to Quality/Quantity Committee/ NWCCOG." The motion should be seconded and voted by the Council. The appointment of the Apprentice, if needed, will be similar. VOTING MEMBER. COUNCIL DISCRETION. c. Colorado Association of Ski Towns (CAST) Member and Alternate. ACTION REQUESTED OF COUNCIL: The Mayor and Town Manager have served on CAST. Any Council Member is welcome to attend a CAST meeting. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council for the Colorado Association of Ski Towns." The motion should. be seconded and' voted by the Council. Meetings are held every other month around the state. There is no set date or time limit. VOTING MEMBER. d. Vail Recreation DistrictlTown Council Subcommittee Two Council Members, two VRD board members and staff have been discussing master planning of town-owned, VRD managed facilities and updating current leases for Council approval. Grecl Moffet and Mark Gordon were the Council representatives. e• Commission on Special Events (CSE). ACTION REQUESTED OF COUNCIL: Pam Brandmeyer and Ke~lli McDonald have served as liaison to this committee. I• Bravo! Vail Valley Music Festival. ACTION REQUESTED OF COUNCIL: Farrow Hitt has served as Town Council representative on this board. Pam Brandmeyer has served as alternate. After discussion of this a motion should be made as follows: "I move be appointed to represent the Vail Town on the Bravo! Colorado Board." The motion should be seconded and voted on by the Council. This board meets quarterly for two to three hours and a Council member is required. VOTING MEMBER. COUNCIL_ DISCRETION. g. Town of Vail Housing Authority ACTION REQUESTED OF COUNCIL: Kim Newbury is currently serving until 2009. Meetings generally are held once a quarter within a one hour time frame. There is the potential for more time when there are special projects. VOTING MEMBER PER STATE LEGISLATION. h• Channel 5 Vail Valley Community Television Board. ACTION REQUES'1"ED OF COUNCIL: Mark Gordon has served as the Council's representative on this board and Pam Brandmeyer. as a community board member. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Channel 5 Vail Valley Community Television Board." The motion should be seconded and voted by the Council. VOTING MEMBER. COUNCIL DISCRETION. Meetings are held monthly Art in Public Places (AIPP) ACTION REQUESTED OF COUNCIL: Kent Logan has served as Council's representative on this committee. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Art in Public Places board." The. motion should be seconded and voted by the Council. ADVISORY MEMBER. NON-VOTING. Meetings are held the second and fourth Thursday of each month with meetings generally from 8:30 a.m. to 10:00 a.m. Mauri Nottingham Environmental Award. Farrow Hitt has served as Council's representatives on this committee. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Mauri Nottingham Environmental Award Committee." The motion should be seconded and voted by the Council. Meetings are held annually. VOTING MEMBER. COUNCIL DISCRETION. k. Vail Valley Exchange/Sister Cities. ACTION REQUESTED OF COUNCIL: Kim Newbury has served as Town Council representatives on this committee. After discussion of this item, a motion should be made as follows: "I move be appointed as the. representative of the Vail Town Council on the .Vail Valley Exchange Committee." The motion should be seconded and voted by the Council. Meetings are held randomly throughout the year. A Council member is requested. VOTING MEMBER. COUNCIL DISCRETION. Eagle County Regional Transportation Authority. ACTION REQUESTED OF COUNCIL: Kevin Foley has served as Town Council representative on this authority and Mike Rose serves as alternate. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Regional Transportation Authority." The motion should be seconded and voted by the Council. The appointment of the Alternate will be similar. VOTING MEMBER REQUIRED BY STATE LEGISLATION. m. Ford Park Parking Management Plan. ACTION REQUESTED OF COUNCIL: Pam Brandmeyer has served as the Council's representative on this committee. The committee is made up of atl Ford Park user groups. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Ford Park Management Plan Committee." The motion should be seconded and voted by the Council. Through the approved Ford Park Management Plan, quarterly meetings have been set. A Council. member's presence would be welcome, but is not required. Pam Brandmeyer serves as staff representative. ADVISORY MEMBER. COUNCIL DISCRETION. It may not be necessary to have a Council designee at this time. n. Town of \/ail Open Space/Charter Committee. ACTION REQUESTED OF COUNCIL: Mark Gordon has served as the Council's representative on this committee. Also serving are the Town Manager and a member of the PEC After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Open Space Committee." The motion should be seconded and voted by the Council. VOTINCa MEMBER REQUIRED BY TOV CHARTER. o. Colorado Ski Museum and Ski Flall of Fame. Dwight Henninger has served as the town representative. After discussion of this item, a motion should be made as follows: "i move be appointed as the representative of the Vail Town Council on the Colorado Ski Museum and Ski Hall of Fame." The motion should be seconded and voted by the Council. ADVISORY MEMBER. COUNCIL DISCRETION. p. Vail Youth Recognition/Ambassador Award. Kim Newbury serves as Council's representative on this committee. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Vail Youth Recognition Award committee." The motion should be seconded and voted by the Council. This committee gets together once a year to determine the award recipients. VOTINIa MEMBER. COUNCIL DISCRETION. q. Vail Alpine Garden Foundation Board (VAGF). Pam Brandmeyer has served as Town Council representative. The board meets on the third Friday of every other month. After discussion of this item, a motion should be made as follows: "I move _ be appointed as the representative of the Vail Town Council on the Vail Alpine Garden Foundation Board." The motion should be seconded and voted by the Council. ADVISORY MEMBER. COUNCIL DISCRETION. r. Vail Local Marketing District Advisory Committee (VLMDAC). Greg Moffet serves on this board. Mark Gordon has been shadowing Greg over the past several months to become familiar with the VLMDAC's responsibilities. One member should be appointed. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vaif Town Council on the Vail Local Marketing District Advisory Board." The motion should be seconded and voted by the Council. VOTING MEMBER REQUIRED BY State Special District Legislation. s. Parking Task Force. Kevin Foley and Farrow Hitt have served on this board. The meetings are held as needed, approximately six to eight meetings per year. After discussion of this item, a motion should be made as follows: "I move be appointed as the representative of the Vail Town Council on the Parking Task Force." The motion should be seconded and voted by the Council. VOTING. COUNCIL DISCRETION. t. Vail Child Care Center. John "JP" Power has served as the Council's representative on this committee, with Kim Newbury serving in an advisory capacity. After discussion of this item, a motion should be made as follows: "I move that Kim Newbury be appointed as the representative of the Vail Town Council on the Eagle Valley Child Care Association representing the Vail Child Care Center." The motion should be seconded and voted by the Council. VOTING MEMBER REQUIRED BY NON-PROFIT STATUS. u. Rural Resorts Region. In 1996, five Colorado counties (Eagle, Garfield, Lake, Pitkin and Summit) formed the Rural Resort Region (RRR) to address regional issues affecting communities dependant upon resort economies. In January 2002, the Rural Resort Region joined forces with Northwest Colorado Council of Governments (NWCCOG) to form a new working relationship. The new partnership opened RRR's doors to any county or municipal governmental jurisdiction, special taxing district, not for profit organization or private business that is interested in the issues addressed by RRR. As a result, RRR has increased its number of affiliates from its original five counties. RRR is an issues-based, boundaryless organization that works to identify relationships between resort community issues. The group then works to develop solutions and strategies by building partnerships and coalitions among entities affected by these issues. For 2003, RRR identified mountain workforce housing as its primary focus and sponsored the 2003 Summit on Mountain Workforce Housing. In 2004, RRR produced a Benchmark Report. In 2005, RRR worked with the I-70 Coalition to identify and build consensus on a locally preferred alternative addressing transportation growth along -the I-70 central mountain corridor. In 2006, the RRR focused its efforts on Forest Health, specifically regarding the Mountain Pine Beetle epidemic, and continued to work with the I-70 Coalition. The RRR will continue its work on Forest Health in 2008. Greg Moffet served as Council's representative on this committee,. v. Donovan Park Pavilion Committee. Diana Donovan, Chair, previously served as Council's representative, along with Pam Brandmeyer and Laurie Assmussen (Pavilion Manager). The committee meets as issues arise at the pavilion. If a current Council Member should like to serve, Council should make that appointment. w. Timber Ridge affordable housing Corporation (TRAIiC) Timber Ridge Affordable Housing Corporation (TRAHC) in a Colorado non-prafit corporation incorporated on July 9, 2003.. TRAHC is governed by a Board of Directors, originally comprised of all members of the Town Council. On March 1, 2005, the Board amended TRAHC's by-laws to name a new Board comprised oi` the following staff: Town Manager (President); Director of Finance; Director of Community Development; Director of Public Works; and Facilities Manager. The TRAHC Board is responsible for managing the process to redevelop the property known as Timber Ridge Village Apartments and to direct the operation of the property until such time as redevelopment begins. x. Visitor Centeir Sub-Committee This committee is used to develop an RFP process for selection of an operator. y. Eagle County Blue Ribbon Housing Committee Countywide affordable housing working group. Mark Gordon has served on this committee. z. Eagle County Blue Ribbon Housing Committee Technical Advisory Committee A "technical" group that advises the subcommittee, which will advise the Blue Ribbon Panel. Greg Moffet has served on this committee. aa. Eagle County Open Space Advisory Committee Greg Moffet has served on this committee and has expressed an interest in continuing to serve based on Council direction. bb. Vail Economic Advisory Council Greg Moffet and Mark Gordon have served on this council. cc. Chamonix Parcel Planning Committee Kent Logan and Kim Newbury have served on this committee. dd. 1-70 Coalition Stan Zemler and Greg Hall currently attend these meetings. If a Council Member wishes to attend, the Council should appoint a member. 6. Rachel Friede ITEM/TOPIC: First reading of Ordinance No. 32, Series of 2007, an Ordinance to enact prescribed regulation amendments to Title 11, Sign Regulations, and Title 12, Zoning Regulations, Vail Town Code, to allow for amendments to regulations pertaining to outdoor display, sales signs, menu boards, and setting forth details in regard thereto. (15 min.) ACTION REQUESTED OF COUNCIL: Staff requests that the Vail Town Council approve, approve with modifications, or deny Ordinance No. 32, Series of 2007, on first reading. RECOMMENDATION: Staff recommends approval with modifications of Ordinance No. 32, Series of 2007, on first reading. 7. Scot Hunn ITEMlTOPIC: First reading of Ordinance No. 34, Series of 2007, an ordinance amending the Official Zoning Map for the Town of Vail in accordance with Title 12, Zoning Regulations, Chapter 5, Zoning Map; Rezoning Lot 86, Block 2, Vail Potato Patch, from High Density Multiple Family (HDMF) District to Housing (H) District, and setting forth details in regard thereto.. (PEC07-0059). (10 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 34, Series of 2007, on first reading. BACKGROUND RATIONALE: On October 8, 2007, the Town of Vail Planning and Environmental Commission held a public hearing on a request to amend. the Official Zoning Map for the Town of Vail in accordance with Title 12, Zoning Regulations, Chapter 5, Zoning Map; Rezoning Lot 86, Block 2, Vail Potato Patch, from High Density Multiple Family (HDMF) District to Housing (H) District, and setting forth details in regard thereto. {PEC07-0059). Upon review of the request, the Planning and Environmental Commission voted unanimously (5-0-0) to forward a recommendation of approval of the request to amend the Official Zoning Map to the Vail Town Council. STAFF RECOMMENDATION: Staff recommends that Town Council approves Ordinance No. 34, Series of 2007, on first reading. 8. Scot Hunn tTEM/TOPIC: First reading of Ordinance No. 35, Series of 2007, an ordinance amending Sections 12-61-3, Conditional Uses, and 12-16-7, Use Specific Criteria and Standards, Vail Town Code, to add "Professional Offices and Business Offices" to the list of allowable conditional uses in the Housing (H) District, and setting forth details in regard thereto. (PEC07-0059) (10 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 35, Series of 2007,, on first reading. BACKGROUND RATIONALE: On October 8, 2007, the Town of Vail Planning. and Environmental Commission (PEC) held a public hearing on the request for a text amendment to the Vail Town Code. Upon .consideration of the request, the Commission unanimously (5-0-0) to forward a recommendation of approval of the text amendment request to the Vaii Town Council. STAFF RECOMMENDATION: Staff recommends that Town Council approves Ordinance No. 35, Series of 2007, on first reading. 9. Kathleen Halloran ITEMlTOP1C: First Reading of Mill Levy Certification, Ordinance No. 36, Series 2007. {5 min.) ACTION REQUESTED OF COUNCIL: Approve Ordinance No. 36, Series 2007, on first reading. BACKGROUND RATIONALE: Mill Levy Assessments must be certified to the County for collection annually; this ordinance authorizes certification. Please note that these numbers are only an estimate. We are waiting for current information from Eagle County for accurate numbers. STAFF RECOMMENDATION: Approve Ordinance No. 36, Series 2007, on first reading. 10. Stan Zemler ITEM/TOPIC: Discussion of Draft Ordinance No. 37, an Judy Camp ordinance adopting a use tax on building and construction Matt Mire materials; amending Title 2, Revenue and Finance, Vail Town code with the addition of Chapter 8 "Use Tax on Building and Construction Materials"; and setting forth details in regard thereto. (30 min.) ACTION REQUESTED OF COUNCIL: Provide direction to staff regarding policy and administration provisions to be included in Ordinance No. 37. See staff memorandum for specific issues. BACKGROUND RATIONALE: The construction use tax ballot question approved by Vail voters on November 6t`' gives Town Council the authority to implement a 4% tax on, building and construction materials consumed or used in the Town of Vail. Proceeds of the tax are to be used exclusively for capital acquisitions and capital projects in the town. Implementation of the tax is accomplished by two readings of an ordinance which sets the policy and administrative details relating to the tax. Additional background information is included in Council's packet. STAFF RECOMMENDATION: Discuss draft Ordinance No. 37 and provide direction for staff to bring back and ordinance for first reading on December 4th 11. Matt Mire ITEM/TOPIC: Resolution Number 28, Series 2007. A Resolution Deferring the Regular Meeting of the Vail Town Council, Pursuant to Section 1-5-11 of the Vail Town Code, From January 1 to January 8, 2008 and January 15 to January 22, 2008; and Setting Forth Details in Regard Thereto. (5 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with amendments, or deny Resolution No. 28, Series 2007. BACKGROUND: Pursuant to Title 1, Chapter 5, Section 11, Vail Town Code, for "good cause" the council at a regular meeting preceding the regular meeting which will be deferred may defer the regular meeting to a subsequent date not later than one week after the deferred regular meeting date STAFF RECOMMENDATION: Approve, approve with amendments, or deny Resolution No. 28, Series 2007. 12. ITEM/TOPIC: Adjournment. (8:25 p.m.) NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT TBD, TUESDAY, DECEMBER 4, 2007 IN THE VAIL TOWN COUNCIL CHAMBERS. Sign language interpretation available upon request with 48-hour notification. Please call 479-2106 voice or 479-2356 TDD for information. MEMORANDUM TO: Vail Town Council FROM: Department of Community Development DATE: November 20, 2007 SUBJECT: First Reading of Ordinance No. 32, Series of 2007 (Sign and Outdoor Display Ordinance) I. PURPOSE The applicant, the Town of Vail, is requesting a first reading of Ordinance No. 32, Series of 2007, an Ordinance to enact prescribed regulation amendments to Title 11, Sign Regulations, and Title 12, Zoning Regulations, Vail .Town Code, to allow, for amendments to regulations pertaining to outdoor display, sales signs, menu boards, and setting forth details in regard thereto. Staff requests that the Vail Town Council approve, approve with modifications, or deny Ordinance No. 32, Series of 2007, on first reading. Staff recommends approval with modifications of Ordinance No. 32, Series of 2007, on first reading. II. BACKGROUND On August 15, 2006, the Vail Town Council reviewed a Staff presentation regarding the current sign- code and current sign issues in' Vail Village and Lionshead. The Town Council directed Staff to make several modifications to the code. Council also directed Staff to utilize the Vail Economic Advisory Council to assist in developing policy recommendations. Staff distributed a survey to all businesses regarding signage, and received responses from 46 businesses. Regulations related to outdoor display, sales signs and menu boards were identified for further review. These regulations lacked clarity and alignment with business community needs. Due to lack of clarity, the regulations were difficult to implement and enforce. On September 19, 2006, Staff met with the Vail Economic Advisory Council (VEAC) to get recommendations on these issues. • Staff reviewed the recommendations and went back to the VEAC meeting on November 14, 2006 to reiterate and confirm the recommendations. On November 21, 2006, Staff returned to the Town Council to review VEAC recommendations. The Town Council directed Staff to draft text amendments based on those recommendations. 1 In August 2007, Staff met with the VEAC and the Vail Chamber and Business Association (VCBA) in order to gain input on the proposed text amendments. On August 27, 2007, Staff presented proposed text amendments to the PEC, and the item was tabled in order for staff to gain more input from business owners and other directly affected parties. In September 2007, Staff met with the VCBA Board, and then held a meeting with members of the business community in order to gain input. On October 8, 2007, Staff presented the proposed text amendments included in the attached PEC memo. The PEC worked through the text amendments and came up with compromises on the text amendments that are now proposed in the ordinance. The recommendation of approval with modifications is outlined in Attachment C, which includes an outline of current regulations, input received, and recommended amendments. III. PROPOSED AMENDMENTS The proposed text amendments can be broken down into three major categories. The following outlines each category and associated recommendations by the PEC and Staff: 1. Menu boxes: Currently, businesses are allowed one menu box up to 6 sq ft. It is unclear whether specials boards count as part of the menu box area calculation. The PEC recommended that businesses be allowed 6 sq ft of menu box and three square feet of specials boards (chalk or dry erase) per business frontage with a public entrance. They placed no limitation on the number of menu boxes or specials boards, so long as the area requirement is met. Staff recommends that the Town Council modify Ordinance No. 32, Series of 2007, in order to regulate the number of menu boxes and specials boards. Staff recommends that menu boxes be limited to two menu boxes of up to six (6) sq ft and one specials board of up to three (3) sq ft per business frontage with a public entrance. 2. Sale signs: Currently, businesses are allowed one sale sign of up to 1.5 sq ft, with a special provision for more signage in the non-winter months. PEC recommended to allow an unlimited number of sale signs for up to 3 sq ft of signage, and the deletion of the special provision. Staff agrees with this recommendation, as it will provide ease of implementation. Staff also supports a special business promotion permit, which will come before the Town Council at a later date, and will allow for increased signage for special business promol:ions. 3. Outdoor display: Currently, outdoor display is allowed in commercial and business districts on a business' own property, without any further regulation. The PEC recommended no changes to this regulation, except to allow for leasing of town- owned property. Should the TO\Nn Council request that a leasing program be established, Staff will draft a resolution for the next Town Council meeting detailing the terms of this type of lease. 2 IV. STAFF RECOMMENDATION The Department of Community Development recommends the Vail .Town Council approve, with modifications, Ordinance No. 32, Series of 2007, on first reading to amend Title 11, Sign Regulations, and Title 12, Zoning Regulations, Vail Town Code, to allow for amendments to regulations pertaining to outdoor display, sales signs, menu boards, and setting forth details in regard thereto. Staffs recommendation is based upon the review of the criteria noted in Section V of the October 8, 2007 Planning and Environmental Commission memorandum (Attachment A) and the evidence and testimony presented. Staff recommends the Vail Town Council approve, with modifications, Ordinance No. 32, Series of 2007 on first reading. Should the Town Council choose to approve Ordinance No. 32, Series of 2007, on first reading, the Department of Community Development recommends the Town Council make the following findings: 1. That the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, and 2. That the amendments further the general and specific purposes of the Sign Regulations; and 3. That the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. V. ATTACHMENTS A. October 8, 2007 Planning and Environmental Commission memorandum B. Ordinance No. 32, Series of 2007 C. Chart of current regulations, input received and recommended text amendments 3 Attachment A MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: October 8, 2007 SUBJECT: A request for a final recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendments, Vail Town Code, for proposed text amendments to Title 11, Sign Regulations, and Title 12, Zoning Regulations, Vail Town Code, to allow for amendments to regulations pertaining to outdoor display, sales signs, menu boards, and setting forth details in regard thereto. (PEC07-0043) Applicant: Town of Vail and Vail Chamber & Business Association Planner: Rachel Friede SUMMARY The applicants, Town of Vail and Vail Chamber & Business Association, are requesting the Planning and Environmental Commission forward a recommendation to the Vail Town Council regarding the proposed text amendments to Title 11, Sign Regulations, and Title 12, Zoning Regulations, Vail Town Code, to allow for amendments to regulations pertaining to outdoor display, sales signs, menu boards, and setting forth details in regard thereto. Based upon Staff's review of the criteria outlined in Section V of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for the proposed text amendments, subject to the findings noted in Section VI of this memorandum. II. DESCRIPTION OF REQUEST This request is the result of a partnership formed between Town Staff and the Vail Chamber & Business Association (VCBA) to evaluate the Sign Regulations and their implementation throughout the Town. A survey was conducted among business owners and the Vail Economic Advisory Council (VEAC) was consulted in order to understand how the business community is affected by the Sign Regulations. The Vail Town Council directed Staff to draft text amendments to reflect input from businesses and the VEAC. Staff is proposing text amendments to the Sign Regulations and Zoning Regulations that meet the intent of the VEAC recommendations, and will alleviate some issues related to signage and outdoor display racks. Staff brought proposed text amendments to the PEC on August 27, 2007, and the item was tabled in order to allow Staff to receive more input from local businesses. Since that meeting, Staff met with the VCBA Board and also held a meeting for local business owners and other interested parties to provide input. The current regulations, originally proposed text amendments, and public input are outlined in Attachment A. The following outlines the rationale for the text amendments, followed by the pertinent code sections and proposed amendments. When those who provided input were in agreement, the amendments area reflection of that input. Where there were differences, Staff recommended text amendments that meet the goals of clarifying the regulations, ease of compliaince and enforcement, and fairness among businesses. In some cases, Staff is providing two options for text amendments, and requests that the PEC choose one opi:ion and include that in their motion. There are also numerous housekeeping amendments that were not the focus of public input, nor do they change the Town's current policies. Staff requests PEC review the proposed text amendments, ask any pertinent questions, and then make a recommendation to the Vail Town Council. ,kThe following amendment to Section 11-1-3, Applicability is necessary to clarify that signs require design review, but not necessarily review by the Design Review Board. 11-1-3: APPLICABILITY. Except as provided elsewhere in this title, the design, placement, and use of any signs shall be in compliance with all of the regulations specified in this title. All signs in the town of Vail are subject to the design guidelines and standards (section 11-5-1 of this title) design review ,bea~{9RB). * The following amendments to Section 11-2-1, Definitions Enumerated, are necessary to define terms that were added as a result of the proposed text amendments. 11-2-1: DEFINITIONS ENUMERATED: CHALK BOARD: A smooth hard panel for writing on with chalk. CHANGEABLE COPY.' A manually operated sign that displays graphical or word content that can be easily changed or altered; DISPLAY BOX : A freestanding or wall sign that is enclosed in glass or a similar clear material on at least one side, for the express purpose of displaying menus, real estate listings, entertainment options, or items related to the advertised business; allewe~at °°*~^^ °nrl rlrinLinrr eofohliohmenf~~ re~~ ecf~fe Y• DRY ERASE BOARD: A plastic glossy surface that can be written on with special markers that allow markings that temporarily adhere to the. surface of the board and that can be easily removed. OUTDOOR REPRESENTATIVE DISPLAY: A temporary outdoor arrangement of objects, ifems, or products representative of the merchandise sold or rented by a retail establishment. SIGN, GOING OUT OF BUSINESS: A sign that indicates that the business displaying. the sign will cease to operate at any location and/or wishes to liquidate merchandise. * Display boxes are currently allowed for eating and drinking establishments, real estate businesses and movie theaters. The following text amendments change the requirements for display boxes, chalk boards and dry erase boards at eating and drinking establishments only. Currently, there are no clear provisions for dry-erase or chalk boards. These text amendments seek to clarify the requirements for these types of signs. Staff recommends that the total area-for display boxes and chalk or dry erase boards, per frontage with a public entrance, be 6 sq ft. However, the businesses Staff spoke with requested that it be 9 sq ft. Staff will present both options to the PEC and requests that the PEC decide on which option should be presented to the Town Council. The text amendments require that display boxes be attached to the building, unless a practical difficulty exists, in which case a freestanding display box would be allowed. Chalk and dry erase boards can be attached to a display box, or if stand-alone, must be attached to the building, fencing or some other existing feature. This is a compromise of the public input received. 11-6-3: BUSINESS SIGNS: A. Sign District 1 (SD 1); Number, Area, Height, And Special Provisions Of Business Signs: b~~ea: The n~mhinerl ~re~ o > h~ll nnf evneeiJ Div /L;1 > ~ir..~re foo+ l3t: The heiwhf of Fhe h 6. -bei inhot~f n~.f .,f fho mon. . hnv c~h~ll n . ~f ovfonrl mnro g • , , h..~:.,o~~o~ ivcrvmc~c~ 2. Display boxes, Chalk Boards and Dry Erase Boards a. Applicability: Display boxes shall be allowed at eafing and drinking establishments, real estate businesses, and movie theaters for the exclusive display of materials associated with such businesses. Chalk boards and dry erase boards shall be allowed in eating and drinking establishments only. b. Number: One display box shall be allowed per business frontage with a public entrance. Eating and drinking establishments may also have one dry erase board or one chalk board per business frontage with a public entrance. **Option 1 for 11-6-3A-2c c. Area: The tofal area of display box, chalk board and dry erase board allowed per business frontage with a public enfrance shall not exceed a combined area of six (6) square feet. **Option 2 for 11-6-3A-2c: c. Area: The total area of display box, chalk board and dry erase board allowed per business frontage with a public entrance shall not exceed a combined area of nine (9) square feet. d. Height: No part of any display box shall extend more than six feet (6~ above existing grade. e. Location: Display boxes shall be attached to the exterior wall of the business frontage, unless the Administrator determines a practical difficulty exists. Where practical difficulty exists, display boxes maybe freestanding. Chalk boards and dry erase boards shall be attached to the exterior wall of the business frontage or attached to the display box. Freestanding stand alone chalk boards or dry erase boards are prohibited. f. Lighting: Display boxes may contain one concealed lighting source and shall conceal all electrical conduits. Rope lighting maybe considered one lighting source but shall be concealed. B. Sign District 2 (SD 2); Number, Area, Height, And Special Provisions Of Business Signs: 7 AAon~. hnvoc /olon Lnnuin on rlic h Are •+• Thn nnmhinoi-I •+re.+ oh•~ll nnf evnnnrl civ /Rl oiv~~~ra font n 4.Iniivhf• The hnirrhf of fhn hiryheaf n•+rF of fhn mnn~ ~ hnv oh~ll nn+ ovfnnrl mnro fhn c~iv font /R~1 frnm nvic~finr, n~V~ , ~ $e~ 2. Display boxes, Chalk Boards and Dry Erase Boards a. Applicability: Display boxes shall be allowed of eating and drinking establishments, real estate businesses, and movie (heaters for the exclusive display of materials associated with such businesses. Chalk boards and dry erase boards shall be allowed in eating and drinking establishments only. b. Number: One display box >hall be allowed per business frontage with a public entrance. Eating and drinking establishments may also have one dry erase board or one chalk board per business frontage with a public entrance.. **Option 1 for 11-6-3B-2c c. Area: The total area of display box, chalk board and dry erase board allowed per business frontage with a public entrance shall not exceed a combined area of six (6) square feet. **Option 2 for 11-6-36-2c: c. Area: The total area of display box, chalk board and dry erase board allowed per business frontage with a public entrance shall not exceed a combined area of nine (9) square feet. d. Height: No part of any display box shall extend more than six feet (6~ above existing grade. e. Location: Display boxes shall be attached to the exterior wall of the business frontage, unless the Administrator determines a practical difficulty exists. Where practical difficulty exists, display boxes maybe freestanding. Chalk boards and dry erase boards shall be attached to the exterior wall of the business frontage or attached to the display box. Freestanding stand alone chalk boards or dry erase boards are prohibited. f. Lighting: Display boxes may contain one concealed lighting source and shall conceal all electrical conduits. Rope lighting maybe considered one lighting source but shall be concealed. ~ The following text amendments provide for changes to the sale sign provisions. Currently, there are numerous recommendations from the business community to allow for more sale signage. The Town Council has called for limits to sale signage, and clarification of the sale signage regulations will help ease of compliance. Currently, sale signage cannot exceed 1.5 sq ft, and may only be one sign. The business community has asked for a range of sizes, from no change to up to 4 sq ft. In order to accommodate all groups, Staff is recommending up to 3 sq ft be allowed for up to two sale signs. A. Sign District 1 (SD 1); Number, Area, Height, And Special Provisions Of Business Signs: 3. Sale signs: a. Number.- Each business shall be allowed up to two sale signs. ~• b. Area: The total combined area of the allowed sale signs shall not exceed ~5 3 square feet. c. Height: The top of any sale sign shall not extend more than ten feet (10) above existing grade. d. :Location: Sale signs shall be placed inside a business' window or on an outdoor display raslE elaly. ~` nirrn nnrmif~ ~~+fhnri~~~plo c~inno r\f ++n fn oe+ion /71 c~m~nrn foot mn+i hn B. Sign District 2 (SD 2); Number, Area, Height, And Special Provisions Of Business Signs: 3. Sale signs: a. Number.• Each business shall be allowed up to two sale signs. b. Area: The total combined area of. the allowed sale signs Sshall not exceed 3 square feet. c. Height: The top of any sale sign shall not extend more than twenty five feet (25) above existing grade. d. :Location: Sale signs shall be placed inside a business' window or , shall~~lased on an outdoor display raslE only. The following amendment seeks to clarify the Town's policy on promotional event posters. Currently, the Sign Regulations are ambiguous on whether such signs are permitted. Clarifying the Sign Regulations to allow these types of signs will provide guidelines for businesses, and will allow the posters to be displayed without permit application. 11-7: OTHER SIGNS 11-7-14: Promotional Event Posters A. Description: A sign depicting an event in the community That is not an exclusive advertisement for the business in which it is displayed. B. Number: No more than ten (10) promotional event posters shall be displayed by a business. C. Area: The area of promotional event posters shall not exceed twenty-five percent (25%) of the total window area. Promotional event posters do not count toward business sign area calculations. D. Height: The top of any promotional event poster shall not extend more than twenty five feet (25') above existing grade. E. Location: All promotional event posters shall be displayed inside windows of a business. F. Duration: Promotional Event Posters shall be removed within three (3) days of completion of the promoted event. *The following amendment adds four types of signs to the list of signs that do not require design review approval but still must comply with the design and maintenance standards of Title 11. While most :>ignage requires design review, businesses rarely submit applications for these types of signs. Therefore, staff feels that it will eliminate confusion and streamline the review process if the listed signs are not subject to design review. 11-9-1: EXEMPT SIGNS: The following signs are exempt from 1`he requirements of this code, but remain subject to the design standards and guidelines listed in section 11-5-1 of this title and the maintenance requirements listed in section 11-11-3 of this title: K. Sale signs L. Business operation signs M. Open/closed signs N. Promotional event posters *The following text amendment clarilfies signs that are prohibited, in order to more effectively administer and enforce the Sign Regulations. 11-9-2: PROHIBITED SIGNS: The following signs are prohibited within the town of Vail: A. Animated signs that incorporate the use of movement (aside from natural wind induced movement) through revolving, rotating, or otherwise moving parts; B. Signs with the illusion of movement ; C. Signs (or the illumination (hereof) that flash, pulse, move, rotate, scintillate, blink, flicker, or vary in intensity and/or color, D. Signs that incorporate projected images, emit any sound which is intended to attract attention, or involve the use of live animals; E. Any sign advertising a business or service having been vacated for ninety (90) or more days. This provision does not apply to permanent signs accessory to seasonal businesses, provided there is clear intent to continue operation of the business; F. Any sign or structure that is unsafe or constitutes a hazard to safety for any reason; G. Any gas filled, illuminated or fiber optic sign that is less than four (4') feet from a window ; H. Any sign or structure that obstructs ingress to or egress from a required exitway, that obstructs the view of vehicular traffic entering or exiting a public roadway, or that creates an unsafe distraction for motor vehicle operators; 1. Any sign that could be confused with an official government sign (such as a traffic sign) but is not; J. Any off premises sign that is not otherwise regulated by this title; a~ K. All billboards. L. Pennants, banners, and bunting that are not associated with a special event permit. M. Any freestanding dry erase board or freestanding chalkboard that is not attached to a display box. N. Any real estate literature displayed outdoors. O. Going out of business signs. *The following text amendment changes the penalty for violations of the Sign Regulations from a minimum of $75 per day to the same standard penalty for the rest of the Vail Town Code. This will allow for penalties of up to $999 per day and up to 180 days in jail. CHAPTER 11-11: VIOLATIONS AND ENFORCEMENT 11-11-2: PROCEDURE AND ENFORCEMENT.• A. Notice Of Violation: The administrator shall give written notice of the violation to the owner, general agent, lessee, or tenant of the building or premises at which such violation has been committed or to any employee, contractor, or any other person who commits, takes pa-t in, or assists in any such violation. T,-„~„Titter~ ^^f~^° ch°~~ ~^^'~ ~~° B.Penalty: The business, building or premises at which such violation has been committed and which has been given written notice of the violation, or any person who commits, takes part in, or who assists in any such violation, shall be subject to penalty as provided in Section 1-4-1, General Penalty, of this Codes for each calendar day after written notice is received that such violation continues. This shall not preclude the imposition of any other civil or administrative action or sanction. The correction of a violation of any provision of this title may not restrain imposition of these penalties. *The following text amendments clarify the regulation of outdoor displays. Currently, outdoor displays are allowed in eight zone districts, with little regulation beyond location of displays. The regulations currently say the following: "The area to be used for outdoor display must be located directly in front of the establishment displaying the goods and entirely upon the establishment's own property. Sidewalks, building entrances and exits, driveways and streets shall not be obstructed by outdoor display." The business community has voiced concern over the limitation of outdoor display on private property. Therefore, Staff is providing two options for the PEC. Option #1: The first option is not to acid any additional regulations. This would allow for outdoor display on private property, without an overlay of regulation. Option #2: The second option is outlined in the text amendments below. These text amendments intend to provide clear regulations of area, location, and size of outdoor display. Outdoor display would be limited in area to 20 sq ft and to three fixtures. Initially, Staff was recommending a program to lease public property for outdoor display use. However, the Town Council directed Staff not to pursue this option. The goal set by Town Council in November 2006 ~nras to limit the amount of outdoor display allowed per business in order to improve pedestrian circulation. Title 12: Zoning Regulations 12-2: Definitions 12-2-2: Definitions of Words and Terms: OUTDOOR DISPLAY: A temporary outdoor arrangement of objects, items, or products representative of the merchandise sold or rented by a retail establishment, and further regulatEad by Section 12-14-21. 12-14-21: Outdoor Display of Goods: A. Purpose: The purpose of this Section is to establish regulations for the outdoor display of goods by retail establishments. B. Applicability: Outdoor display of goods shall be permitted by retail establishments in the following zone districts and shall be prohibited in all zone districts not listed: (1) Housing (H) District; (2) Commercial Core 1(CC1) District (3) Commercial Core 2 (CC2) District (4) Commercial Core 3 (CC3) District (5) Commercial Service Center (CSC) District (6) Lionshead Mixed Use 1(LMU-1) District (7) Lionshead Mixed Use 2 (LMU-2) District (8) Ski Base/Recreation 2 (SBR2) District C. Permit Not Required: Outdoor display, where permitted by the provisions of this title, shall not require design review. D. Requirements For Outdoor Display: Where permitted, outdoor display shall be subject to the following limitations: 1. Location: The area used for an outdoor display shall be located directly in front of the retail establishment displaying the goods and entirely upon the establishment's own property. Outdoor display shall not be permitted on public property. Outdoor display fixtures shall be temporary in nature, and shall be removed from the exterior location when the business is closed. Sidewalks, building entrances and exits, driveways and streets shall not be obstructed by outdoor displays. Outdoor displays shall not pose a risk to public safety. 2. Area: The largest area, parallel to grade, of all outdoor display of goods shall be a maximum of thirty (30) square feet. (a) Exceptions: From May to October, outdoor display of bicycles may be allowed additional square footage of area at the discretion of the Administrator. 3. Number: Outdoor display shall not exceed three fixtures, which include, but are. not limited to, tables, clothing racks and equipment racks. From May to October, outdoor display of bicycles maybe allowed additional fixtures at the discretion of the Administrator. 3. Height: No part of any outdoor display shall extend more than six feet (6 above existing grade. 4. signage: Sale signs maybe permitted on outdoor displays, as regulated by Section 11-6-3. No other signage is permitted on or adjacent to outdoor displays that is not otherwise approved by the Administrator, subject fo the regulations of Title 11 of this Code. 5. Cardboard boxes prohibited: Outdoor display of goods shall not include any cardboard boxes, unless part of individual packaging of goods. III. BACKGROUND On August 15, 2006, the Vail Council reviewed a Staff presentation regarding the.current sign code and current sign issues in Vail Village and Lionshead. The Town Council directed Staff to make several modifications to the code. Council also directed Staff to utilize the Vail Economic Advisory Council to assist in developing policy recommendations. Staff distributed a survey to all businesses regarding signage, and received responses from 46 businesses. On September 19, 2006, Staff met with the Vail Economic Advisory Council (VEAC) to get recommendations on these issues. Staff reviewed the recommendations and went back to the VEAC meeting on November 14, 2006 to reiterate and confirm the recommendations. On November 21, 2006, Staff returned to the Town Council to review VEAC recommendations. The Town Council directed Staff to draft text amendments based on those recommendations. In August 2007, Staff met with the VEAC. and the VCBA in order to gain input on the proposed text amendments. On August 27, 2007, Staff presented proposed text amendments to the PEC, and the item was tabled in order for staff to gain more input from business owners and other directly affected parties. In September 2007, Staff met with the VCBA Board, and then held a meeting with members of the business community in order to gain input. IV.. APPLICABLE PLANNING DOCUMENTS Town of Vail Sign Repulations (Title 11. Vail Town Code) Chapter 11-1: Description, Purpose and Applicability 11-1-2: Purpose A. General Purpose: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the town of Vail and to promote the coordinated and harmonious design and placement of signs in the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of the highest quality. B. Specific Purpose: These regulations are intended to achieve the following specific purposes: 1. To describe and enable the fair and consistent enforcement of signs in the town of Vail. 2. To encourage the establishment of well designed, creative signs that enhance the unique character of Vail's village atmosphere. 3. To preserve a successful and high quality business environment that is aided by signs that identify, direct, and inform. 4. To aid in providing for the growth of an orderly, safe, beautiful, and viable community. 11-1-3: Applicability: Except as provided elsewhere in this title, the design, placement, and use of any signs shall be in compliance with all of the regulations specified in this Title. All signs in the town of Vail are subject to the design guidelines and standards (section 11-5-1 of this title) and review by the design review board (DRB). Chapter 11-3: Administration: 11-3-3: Prescribed Regulations Amendment:- A.Factors, Enumerated: Before acting on an application for an amendment to the regulations prescribed in this title, the planning and environmental commission and town council shall consider the following factors with respect to The requested text amendment: 1. The extent to which the text amendment furthers the general and specific purposes of the sign regulations; and 2. The extent to which the text amendment would befter implement grid better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and 5. Such other factors and criteria the PEC and/or town council deem applicable to the proposed text amendment. io B.Necessary Findings: Before recommending and/or granting an approval of an application for a text amendment, the planning and environmental commission and the town council shall make the following findings with respect to the requested amendment: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and 2. That the amendment furthers the general and specific purposes of the sign regulations; and 3. That the amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. Town of Vail Zoning Regulations (Title 12, Vail Town Code) Chapter 12-1: Title, Purpose and Applicability 12-1-2: Purpose A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. 12=3: Administration and Enforcement 12-3-7: AMENDMENT.• C. Criteria And Findings: 2. Prescribed Regulations Amendment: a. Factors, Enumerated: Before acting on an application for an amendment to the regulations prescribed in this title, the planning and environmental commission and town council shall consider the following factors with respect to the requested text amendment: (1) The extent to which the text amendment furthers the general and specific purposes of the zoning regulations; and (2) The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and (3) The extent to which the text amendment demonstrates how conditions have subsfantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and (4) The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and (5) Such other factors and criteria the commission and/or council deem applicable to the proposed text amendment. ii V. REVIEW CRITERIA Staff believes these text amendments are in accordance with the purpose and intent of Titles 11 and 12, and are in the public interest and serve to improve the Code. The review criteria and factors for consideration for a request of a text amendment to Title 11 are established in accordance with the provisions of Section 11-3-3, Vail Town Code, and in Title 12, are established in aa:ordance with the provisions of Chapter 12-3, Vail Town Code. A. Consideration of Factors Regarding the Text Amendment: 1. The extent to which the text amendment furthers the general and specific purposes of the Sign and Zoning Regulations; and Staff believes that the proposed text amendments further the general and specific purposes of Titles 1 '1 and 12. The text amendments create a more comprehensive, clear, and concise Code that will promote the general welfare of the community. The changes to the Sign Regulations and to the outdoor display regulations will allow fora better balance between resort and community, between the need for commercial advertisement and the need to preserve our aesthetic nature. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of tlhe Town; and Staff believes that the proposed text amendments better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and are compatible with the development objectives of the Town. The text amendments will help control development, as outlined in the Land Use Plan goal section. 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulaition is no longer appropriate or is inapplicable; and Staff believes that the proposed text amendments show a change in attitude among business owners, they VEAC and the Town Council to allow for some changes to the Sign and Zoning Regulations. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives. Staff believes that the proposed text amendments will facilitate and provide a harmonious, convenient, workable relationship among land use regulations that are consistent with the Town of Vail master plans and development objectives. iz VI. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forward a recommendation of approval to the Town Council for proposed text amendments to Title 11, Sign Regulations, and Title 12, Zoning Regulations, Vail Town Code, to allow for amendments to regulations pertaining to outdoor display, sales signs, menu boards, and setting forth details in regard thereto. Should the Planning and Environmental Commission choose to approve these proposed text amendments, the Community Development Department recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval to the Town Council for the Town of Vail's request for proposed text amendments to Title 11, Sign Regulations, and Title 12, Zoning Regulations, Vail Town Code, to allow for amendments to regulations pertaining to outdoor display, sales signs, menu boards, and setting forth details in regard thereto." Staff's recommendation. is based upon the review of the criteria in Section V of this memorandum and the evidence and testimony presented. Should the Planning and Environmental .Commission choose to recommend approval of the proposed amendments, Staff recommends the following findings be incorporated into a motion: "1. Thaf the amendments are consistent with the applicable a/emenfs of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, based upon Section V of the Staff memorandum dated October 8, 2007; and, 2. That the amendments further the general and specific purposes of the Sign and Zoning Regulations, based upon Section V of the Staff memorandum dated October 8, 2007; and, 3. That the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality, based upon Section V of the Staff memorandum dated October 8, 2007. " VII. ATTACHMENTS A. Tables showing current regulations, proposed amendments and recommendations from other groups regarding outdoor display, sale signs and display boxes 13 Attachment B ORDINANCE NO. 32 Series of 2007 AN ORDINANCE AMENDING TITLE 11, SIGN REGULATIONS, AND TITLE 12, ZONING REGULATIONS, VAIL TOWN CODE, TO ALLOW FOR AMENDMENTS TO REGULATIONS PERTAINING TO OUTDOOR DISPLAY, SALES SIGNS, MENU BOARDS, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, text amendments are permitted pursuant to parameters set forth for such in Section 12-3-7 of the Town Code of the Town of Vail; and WHEREAS, regulations related to outdoor display, sales signs and menu boards have been identified as concerns due to lack of clarity, and thus, ease in implementation and enforcement; and WHEREAS, the Planning and Environmental Commission of the Town of Vail held a public hearing on October 8, 2007, to consider the proposed amendment in accordance with the provisions of the Town Code of the Town of Vail and forwarded a recommendation of approval with modifications to the Town Council of the Town of Vail; and WHEREAS, the Planning and Environmental Commission finds that the proposed amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and are compatible with the development objectives of the Town; and WHEREAS, the Planning and Environmental Commission finds that the proposed amendments further the general and specific purposes of the Sign and Zoning Regulations; and WHEREAS, the Planning and Environmental Commission finds that the proposed amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality; and WHEREAS, the Vail Town Council considers it in the interest of the public health, safety, and welfare to adopt these amendments to the Town Code. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. The purpose of this ordinance is to amend Title 11, Sign Regulations, and Title 12, Zoning Regulations, to amend requirements for menu boxes, sale signs and outdoor display in the Vail Town Code. (Text that is to be deleted is s#islFer~. Text that is to be added is bold.) Section 2. Section 11-1-3 is hereby amended as follows: 11-1-3: APPLICABILITY.• Except as provided elsewhere in this title, the design, placement, and use of any signs shall be in compliance with all of the regulations specified in this title. All signs in the town of Vail are subject to the design guidelines and Ordinance No. 32, Series of 2007 1 standards {sestier~~-~1-b-~ Chapter 5 of this title) and design review beard {-BR-D)• Section 3. Section 11-2-1 is hereby amended as follows: 11-2-1: DEFINITIONS ENUMERATEC): CHANGEABLE COPY.• A manually operated sign that displays graphical or word content that can be easily changed or altered; menu boxes, display boxes and specials boards are not considered changeable copy . DISPLAY BOX : A freestanding or wall sign that is enclosed in glass or a similar clean material on at least one side, for the express purpose of displaying cereal estate listings and current movie listings; nn/n rf°;n^,nnf nnf;^.,° ^ritems related to the advertised business; allowed at eatf~-ate rlrinLinr. ^n+~hlinhmnnfo~ real estate businesses and movie theaters only. FRONTAGE, BUILDING: The horizontal, linear dimension of any side of a building that has a usable public entrance upon that parallels a major vehicular or pedestrian way or other major circulation area. '"~hT,,,^~e-.m, FRONTAGE, BUSINESS: The horizontal, linear dimension of any side of an above grade level that faces a major vehicular or pedestrian way and has its own public entrance for the exclusive use of said business. ~^Trv~LMYoF1T~: T/'~rr~°Trvm~r~iu'rr , ~ ~ MENU BOX: A freestanding or wall sign that is enclosed in glass or a similar clear material on at least one side for the express purpose of displaying menus, r°-~^~f ' ' in r^/.~fn.-/ ~.-~ Fhn rJrlvnrFinnrl h~~ninnnn; allowed at eating and drinking establishments; rE;°' ^n~^f^ h,~o%nnnn^n ^^,~ „,^.,;^ fhn.+fnrn only. SIGN, GOING OUT OF BUSINESS: A sign that indicates that the business displaying the sign will cease to olcrerate at any location and/or wishes to liquidate merchandise. SIGN, PROJECTING'^'n^ °°~'^rr^~' : A sign that is attached to a building, extending horizontally beyond the surface of the building to which it is attached. SPECIALS BOARD: A chalkboard or dry erase board used to display specials at eating and drinking establishments. Ordinance No. 32, Series of 2007 SUBDIVISION ENTRANCE SIGN: A sign that identifies a subdivision or condominium complex or group of apartment buildings having at least one hundred (100) i-feet of combined building frontage along a vehicular or pedestrian way. Section 4. Section 11-4-2 is hereby amended as follows: 11-4-2: SIGN APPLICATION REVIEW.' A. Criteria For Decision: Each sign application is subject to the following two (2) levels of review: staff review and design review board (DRB) review. 1. Staff Review: The community development department of the town of Vail shall accept for review the properly completed sign application. a. If the staff determines that fhe sign application unquestionably meets the standards of this title, including the design guidelines and standards as they are stated in chapter 5 of this title and the technical requirements as they are stated in chapter 6 and chapter 7 of this title, staff shall then approve the application. All applications approved by the staff shall be listed on the next publicly posted agenda of the design review board. b. If the staff determines that the sign application meets the standards of this title, but does not unquestionably meet the design guidelines and standards as they are stated in chapter 5 of this title and the technical requirements as they are stated in chapter 6 and chapter 7 of this title, staff will schedule the application for review by the design review board at their next hearing, held the first and third Wednesdays of each month. c. If the staff determines that the sign application does not meet the standards outlined in this title, including the design guidelines and standards as they are stated in chapter 5 of this title and the technical requirements as they are stated in chapter 6 and chapter 7 of this title, staff shall deny the application: Upon denial of the application based on lack of compliance with any part of this title, the applicant will be notified of the denial in writing and may submit a new application to the staff, frle an appeal of the staff decision to fhe design review board, or file an application for a variance in accordance with chapter 10, "Variances And Appeals" of this title. 2. Design Review Board Review: The design review board will review all sign applications scheduled on their agenda by staff, in the required presence of the applicant or such applicant's representative, to ascertain the proposal's conformance with the design guidelines and standards as listed in chapter 5 of this title and the technical requirements as listed in chapter 6 and chapter 7 of this title. a. Upon determination of compliance with fhe design guidelines and standards listed in chapter 5 of this title and the technical requirements as listed in chapter 6 and chapter 7 of this title, the design review board will approve, or approve with conditions, the applicant's sign proposal. The applicant will be nofihed in writing of Ordinance No. 32, Series of 2007 the approval and any conditions placed on the approval, and may then erect the sign according to the approved application. b. Upon design review board denial of the application based on the design guidelines and standards listed in chapter 5 of this title and/or the technical requirements listed in chapter 6 and chapter 7 of this title, the.applicanf will be notified in writing of the reasons for denial and may submit a new application to staff according to the recommendations from the design review board. The applicant may file an appeal to the town council if he/she chooses not to submit a new application to staff (see chapter 10, "Variances And Appeals'; of this title). Section 5. Chapter 11-5 is hereby amended as follows: Chapter 11-5: Design Standards and' Guidelines; Sign Measurement 11-5-1: PURPOSE: The design guidelines and standards exist to provide direction for signs within the town of Vail that enhance local streetscape~s and provide aesthetic consistency with both the built and natural environment. The guidelines and standards are intended to encourage expression and creativity. The design guidelines make use of the word "should'; to allow for subjectivity and creativity, whereas the design standards make use of the word "shall'; signifying strict interpretation and enforcement. The sign and frontage measurement sections exist to ensure that measurement of sign area and frontage length are properly calculated in order to facilitate signage that upholds the purpose of this Title. 11-5-4: Sign Measurement: A. Single-faced signs: Single-faced signs (i.e. awning signs, wall signs) shall be measured by up to two imaginary polygons enclosing all letters, graphics and sign base material, including framing, not integrated Info the architecture of the building. B. Multi-faced signs: When two sign faces are places back to back and are at no point more than two (2) feet from one another, the sign area shall be the area of the larger face. Sign area of all other multi-faced signs shall be calculated as the total area of all sign faces. C. Window signs: Window signs :shall be measured by the exact square footage of opaque or translucent materials affixed within three feet of the window. D. Menu boxes and display boxes: Menu and display boxes shall be measured by the area of the outside dimensions of the box, including framing. E. Brackets and fixtures: Brackets, fixtures and other means of securing a sign shall not count towards square footage of signage. Section 6. Section 11-6-3 is hereby deleted and replaced as follows: 11-6-3: BUSINESS SIGNS: A. Business Identification Signs 1. Business Identification Signs in Sign District 1 (SD 1): Ordinance No. 32, Series of 2007 4 a. Number: Each business shall be allowed one business identification sign per public entrance. b. Area: The allowable area of each business identification sign shall be up to six (6) square feet. c. Height: Projecting and awning signs shall have a minimum clearance of eight feet (8~ above pedestrian ways and a minimum clearance of fifteen feet (15~ above vehicular ways. No part of any business identification sign shall extend more than twenty-five feet (25~ above existing grade. d. Location: Business identification signs shall be located on the business frontage. e. Type of Sign: Business identification signs shall not be freestanding. f. Businesses not on the first floor :Businesses not located on the first floor shall be allowed only one projecting sign with a maximum area of four (4) square feet; location shall be subject to design review. 2. Business Identification Signs in Sign District 2 (SD 2): a. Number: Each business shall be allowed one business identification sign per business frontage with a maximum of three (3) per business. b. Area: The combined area of allowed business identification signs is based on the combined business frontages, and is as follows: Combined Business Frontages Total Sign Area 0 feet -12.99 feet 10 square feet 13 feet - 24.99 feet 14 square feet 25 feet - 49.99 feet 20 square feet 50 feet - 74.99 feet 30 square feet 75 feet - 99.99 feet 40 square feet 100 feet plus 50 square feet c. Height: Projecting and awning signs shall have a minimum clearance of eight feet (8~ above pedestrian ways and a minimum clearance of fifteen feet (15~ above vehicular ways. No part of any business identification shall extend more than twenty-five feet (25~ above existing grade. d. Location: Business identification signs shall be located on the business frontage. e. Type of Sign: Business identification signs shall not be freestanding. f. Businesses not on the first floor : Businesses not located on the first floor shall be allowed only one projecting sign with a maximum area of four (4) square feet; location shall be subject to design review. B. Display Boxes (SD 1 and SD 2): Ordinance No. 32, Series of 2007 1. Number: Each business shall be allowed one display box, per Section 11-6- 3B-6. 2. Area: Display boxes shall not exceed six (6) square feet. 3. Height: The height of the highest part of the display box shall not extend more than six feet (6~ from existing grade. 4. Location: Display boxes shall be located on the business frontage. 5. Type of Sign: Display boxes shall not be freestanding signs. 6. Special Provisions: Display boxes are allowed at real estate offices and movie theaters only for the exclusive display of real estate listings and current movie listings. C. Menu Boxes (SD 1 and SD 2): 1. Number: The number of menu boxes shall not be regulated so long as area requirements are met. 2. Area: Businesses shall be allowed six (6) square feet of menu box area. Businesses shall be allowed up to six (6) square feet of additional menu box area if the business has more than one business frontage. No single menu box shall exceed six (6) square feet, and no business frontage shall display more than six square feet of menu box area. 3. Height: The height of the highest part of the menu box shall not extend more than six feet (6~ from existing grade. 4. Location: Menu boxes shall be displayed on the business frontage. 5. Special Provisions: Menu boxes are allowed only at eating and drinking establishments for the exclusive display of menus. D. Specials Boards (SD 1 and SD 2); 1. Number: Businesses shall. be allowed one (1) specials board per business frontage. 2. Area: Specials boards shall not exceed three (3) square feet. 3. Height: The height of the highest part of the specials board shall not extend more than six feet (6~ from existing grade. 4. Location: Specials boards shall be attached to menu boxes. Freestanding specials boards are prohibited. 5. Special Provisions: Specials boards are allowed only of eating and drinking establishments for the exclusive display of specials. E. Window signs (SD 1 and SD 2): 1. Number: The number of window signs is not regulated as long as area requirements are met. 2. Area: The area of any window sign shall not exceed fifteen percent (15%) of the area of the window in which it is placed, with a maximum size per window sign of six (6) square feet. Mullions that are more than twelve inches (12") wide shall be considered window separators, thereby signifying a separate "window area". Sale signs, business operation signs, and open/closed signs do not count toward allowable area of window signs. Ordinance No. 32, Series of 2007 3. Height: The top of any window sign shall not extend more than twenty-five feet (25') above existing grade. 4. Special Provisions: Signs placed inside of a business, within three feet (3~ of a window and visible from the outside, including, but not limited to, sale signs, business operation signs, and open/closed signs, shall be counted toward total window sign area. F. Sale signs (SD 1 and SD 2): 1. Number: The number of sale signs per business is not regulated as long as area requirements are met. 2. Area: The combined area of all sale signs shall not exceed three (3) square feet per business. 3. Location: Sale signs maybe attached fo outdoor display fixtures or shall be placed inside windows. 4. Special Provisions: Sale signs that are displayed in windows do not count toward total allowed window signage. G. Business operation signs (SD 1 and SD 2): 1. Number: The number of business operation signs is not regulated as long as area requirements are met. 2. Area: Each business shall be allowed up to one and a half (1.5) square feet of business operation .signage per public entrance. 3. Height: The top of any business operation sign shall not exceed five feet (5~ from the floor plate of the business. 4. Location: Business operation signs shall be allowed only at the public entrance of a business. 5. Special Provisions/Purpose: Business operation signs are intended fo provide information such as affiliations, hours of operation, and accepted credit cards or forms of payment. H. Open/closed signs: 1. Number: Each business shall be allowed one open/closed sign per public entrance. 2. Area: Each open/closed sign may contain up fo 1.5 square feet of window signage only (per public entrance). 3. Height: The top of any open/closed sign shall not exceed five feet (5~ from the floor plate of the business. 4. Type of Sign: Open/closed signs shall be window signs. 5. Special Provisions: The one open/closed sign allowed per public entrance maybe two-faced for convenience. 1. Sign District 3 (SD 3); Business Signs: All signs in sign district 3 (SD 3) exist under the authority of the Colorado department of transportation (CDOT) and are not regulated by the requirements set forth in this title. Ordinance No. 32, Series of 2007 Section 7. Chapter 11-7 is hereby amended with the addition of Section 11-7-14 as follows: Chapter 11-7; OTHER SIGNS 11-7-14: Promotional Event Posters A. Description: A sign depicting an event in the community that is not an exclusive advertisement for the business in which it is displayed. B. Number: No more than ten (10) promotional event posters shall be displayed by a business. C. Area: The area of promotional event posters shall not exceed finrenty-five percent (25%) of the total window area. Promotional event posters do not count toward window sign area calculations. D. Height: The top of any promotional event poster shall not extend more than twenty-five feet (25') above existing grade. E. Location: All promotional event posters shall be displayed inside windows of a business. F. Type of Sign: Promotional Event Posters shall be window signs. F. Duration: Promotional Event Posters shall be removed within three (3) days of completion of the promofed event. Section 8. Chapter 11-9 is hereby amended as follows: 11-9-1: EXEMPT SIGNS: The following signs are exempt from design review but remain subject to the applicable requirements of this code„ including, but not limited fo the design standards and guidelines listed in Chapter 11-5 and the maintenance requirements listed in section 11-11-3 of this title: A.Memorial signs, dedication plaques, or tablets; B.Notices posted by governmental officers in the performance of their official duties; C. Government signs, including directional signs, to control traffic or for ofher regulatory purposes; D. Works of "fine art" including murals, which do not advertise a product or business and which have been approved by the town of Vail's art in public places board (AIPP); E. Temporary decorations or displays, when they are commonly associated with any national, local or religious holiday; however, such holiday decorations shall be removed once their condition has deteriorated such that they are no longer attractive; F. Temporary or permanent signs erected by public utility companies or construction companies to warn of dangerous or hazardous conditions; G.Signage and decorations related and subject to a special event permit through the town of Vail; H. The inscription of names (or dates) of buildings, when etched into masonry in one location on any business or premises, and in conformity with chapter 6, "Business And Building Identification Signs'; of this title. Each letter of an inscription may not exceed two inches (2') in height and the total engraved area may not occupy more than three (3) square feet of the surface of the building; Ordinance No. 32, Series of 2007 I.Signs in the I-70 right of way, which are regulated by the Colorado department of transportation (CDOT); and J.AII political signs, as defined in chapter 2 of this title. (Ord. 19(2003) § 1) K. Sale signs L. Business operation signs M. Open/closed signs N. Promotional event posters O. Garage and Yard Sale Signs P. Open House Signs Section 9. Section 11-9-2 is hereby amended as follows: 11-9-2: PROHIBITED SIGNS: The following signs are prohibited within the town of Vail: A. Animated signs that incorporate the use of movement (aside from natural wind induced movement) through revolving, rotating, or otherwise moving parts; B. Signs with the illusion of movement ; C. Signs (or the illumination thereof) that flash, pulse, move, rotate, scintillate, blink, flicker, or vary in intensity and/or color; D. Signs that incorporate, projected images, emit any sound which is intended to attract attention, or involve the use of live animals; E. Any sign advertising a business or service having been vacated for ninety (90) or more days. This provision does not apply to permanent signs accessory to seasonal businesses, provided there is clear intent to continue operation of the business; F. Any sign or structure that is unsafe or constitutes a hazard to safety for any reason; G. Any gas filled, illuminated or fiber optic sign that is less than four (4') feet from a window ; H. Any sign or structure that obstructs ingress to or egress from a required exitway, that obstructs the view of vehicular traffic entering or exiting a public roadway, or that creates an unsafe distraction for motor vehicle operators; 1. Any sign that could be confused with an official government sign (such as a traffic sign) but is not; J. Any off premises sign that is not otherwise regulated by this title; a-3e! K. All billboards. L. Pennants, banners, and bunting that are not associated with a special event permit. M. Any specials board that is not attached to a menu box. N. Going Out Of Business signs. Section 10. Chapter 11-11 is hereby amended as follows: CHAPTER 11-11: VIOLATIONS AND ENFORCEMENT 11-11-2: PROCEDURE AND ENFORCEMENT.- A.Notice Of Violation: The administrator shall give written notice of the violation to the owner, general agent, lessee, or tenant of the building or premises at which such violation has been committed or to any employee, contractor, or any other person who commits, takes part in, or assists in any such violation. Ordinance No. 32, Series of 2007 B.Penalty: The business, building or premises at which such violation has been committed and which has been given written notice of the violation, or any person who commits, takes part in, or who assists in any such violation, shall be subject to penalty as provided in Section 9-4-1, General Penalty, of this Code-a ~a for each calendar day after written notice is received that such violation continues. This shall not preclude the imposition of any other civil or administrative action or sanction. The correction of a violation of any provision of this title may not restrain imposition of these penalties. Section 11. Section 12-2-2 is hereby amended as follows: 12-2-2: Definitions of Words and Terms: OUTDOOR DISPLAY: A temporary outdoor arrangement of objects, items, or products representative of the merchandise sold or rented by a retail establishment, and further regulated by Section 12-14-21. Section 12. Chapter 12-14 is hereby amended with the addition of Section 12-14-21 as follows: 12-14-21: Outdoor Display of Goods: A. Purpose: The purpose of this Section is to establish regulations for the , outdoor display of goods by retail establishments. B. Applicability: Outdoor display of goods shall be permitted by retail establishments in the following zone districts and shall be prohibited in all zone districts not listed: 1. Housing (H) District; 2. Commercial Core 1 (CC1) District 3. Commercial Core 2 (CC2) District 4. Commercial Core 3 (CCU) District 5. Commercial Service Center (CSC) District 6. Lionshead Mixed Use 1 (LMU-1) District 7. Lionshead Mixed Use 2 (LMU-2) District 8. Ski Base/Recreation 2 (SBR2) District C. Permit Not Required: Outdoor display, where permitted by the provisions of this title, shall not require design review. D. Requirements For Outdoor Display: Where permitted, outdoor display shall be subject to the following limitations: 1. Location: The area used for an outdoor display shall be located directly in front of the retail establishment displaying the goods and entirely upon the establishment's own property or property leased from the Town of Vail. Outdoor display fixtures shall be temporary in nature, and shall be removed from the exterior location when the business is closed. Sidewalks, building Ordinance No. 32, Series of 2007 10 entrances and exits, driveways and streets shall not be obstructed by outdoor displays. Outdoor displays shall not pose a risk to public safety. 2. Height: No part of any outdoor display shall extend more than six feet (6~ above existing grade. 3. Signage: Sale signs maybe permitted on outdoor displays, as regulated by Section 11-6-3e. No other Signage is permitted on or adjacent to outdoor displays that is not otherwise approved by the Administrator, subject to the regulations of Title 11 of this Code. 4. Cardboard boxes prohibited: Outdoor display of goods shall not include any cardboard boxes, unless part of individual packaging of goods. Section 13. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 14. 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 15. 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 16. ,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 20th day of November, 2007, and a public hearing for second reading of this Ordinance set for the 4~' day of December, 2007, at 6:00 P.M. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. ATTEST: Richard D. Cleveland, Mayor Lorelei Donaldson, Town Clerk Ordinance No. 32, Series of 2007 11 Ordinance No. 32, Series of 2007: Attachment C li/2o/o7 )isplay Boxes Current Regulations Text Amendments VEAC VCBA Board VCBA Special Text Amendments PEC ;halk/ Dry Erase Proposed to PEC Recommendations Recommendations Meeting with Proposed to PEC Recommendation to 3oards 8127107 Business Owners 1018107 TC 1.018107 .ocationRype Freestanding or Wall- Wall-mounted. No change Freestanding or wall- Wall-mounted or Wall-mounted. Wall-mounted or mounted but must be Freestanding only mounted allowed. freestanding. Can be Freestanding only free-standing menu encased in glass when practical Menu box may have menu box, dry erase when practical box, enclosed in difficulties exist. Dry attached dry erase or or chalk board. Does difficulties exist. Dry glass. All dry erase erase or chalkboard chalk board, plus an not have to be erase or chalkboard or chalk boards must must be attached to unattached dry erase attached. must be attached to be attached to menu menu box. ~ or chalk board Apr 15- menu box or to box Nov 15. exterior of buildin . Vumber One per business One per business One menu box andlor One per business Up to two per business One display box and Based on size frontage with a public chalkboard for each frontage with a public frontage with a public one chalk or dry erase entrance public entrance. entrance, plus entrance, based on per business frontage Maximum of two per additional chalk or dry size of frontage. with a public entrance frontage with two erase per entrance Apr primary public 15-Nov 15 entrances. Size 6 sq ft 6 sq ft each includes 6 sq ft each includes 6 sq ft each plus 5 sq ft total per Option #1: 6 sq ft per Up to 6 sq ft menu attached chalk or dry attached chalkboard additional 3 sq ft each business frontage with business frontage with box per business erase board frontage from Apr 15- a public entrance. No public entrance- frontage with a Nov 15 for chalk or dry one signlbox larger includes combination public entrance. erase board to be than 6 sq ft of display box, dry Up to 3 sq ft chalk) attached to building or erase or chalk board. dry erase per patio Option #2: 9 sq ft business frontage with public entrance Chalk Unclear if allowed Would be allowed Chalkboards only. No Allowed as attached to Allowed attached or Allowed at restaurants Allowed when boardslDry ONLY when attached dry erase. menu box. A stand- separate from menu when attached to attached to menu prase to menu box at alone additional 3 sq ft box. Counts as part of display box, or when box restaurants, included of chalk or dry erase allowed signage size. attached to building. in total size board per frontage No freestanding stand Dry erase only in allowed Apr 15-Sept alone chalk or dry black, chalk board only 15 erase (no sand~.vich in reen or black No color re uirements boards Height Highest part not to No change No change No change No change. No change No change exceed 6 ft from ratle Sale Signs Current Regulations Text Amendments VEAL VCBA Board VCBA Special Text Amendments PEC Proposed to PEC Recommendations Recommendations Meeting with Proposed to PEC Recommendation to 8127/07 Business Owners 1018107 TC 1018107 LocationlType Window signor No Change No Change No Change Ban signs that say Ban signs that say Ban "Going out of attached to outdoor "Liquidation" or "Going "Liquidation" or "Going business" signs dis la out of Business" out of Business" l~un;ber 1 ^er business No Chan a ivo Chan a No Chan a Unlimited 2 er business Unlimited Size 1.5 sq ft No Change No Change No Change 4 sq ft/frontage Up to 3 sq ft Up to 3 sq ft max 1.5 s ft/si n height No more than 10 ft No Change No Change No Change No change No change No change above rade ipecial Up to 7 sq ft extra Delete this provision Support a Business Delete this provision- Delete this provision Delete this provision Delete this provision provision allowed for 2 periods Promotion Special Does not support a Another option is to of up to 15 days each Event Permit that business promotion include sale signs in between Apr 1-Dec 1 would allow for special event permit total window sign area, increased si na a no other restrictions )utdoor Display Current Regulations Text Amendments VEAC VCBA Board VCBA Special Text Amendments PEC Proposed to PEC Recommendations Recommendations Meeting with Proposed to PEC Recommendation to 8127107 Business Owners 1018107 TC 1018107 Option #1 below Option #2: No chart e .ocationlType On business' property Representative Representative No change Allow TOV land lease No change On business' Outdoor display: Sample Display. fcr businesses o.. a property OR on Retail only, on own Excessive outdoor case-by-case basis town-owned leased property or lease TOV arrangements of land adjacent land inventory not ermitted. lumber No regulation No change No change Summer: No change No change Up to three display No change Winter: Limit number fixtures line As much as you can fit 12 sq ft. Bike shops No excessive displays Summer: No change On your property in an Up to thirty square Unlimited on your on your own property may be allowed more Winter: Come up with unlimited amount, plus feet. own property, space at formula based on ability to use TOV land regulated ontown- Administrator's building frontage if no safety hazards owned property discretion. /eight No regulation No higher than 6 sq ft No change No change No change No higher than 6 sq ft No change from rade ~ from rade ~pecial Only in certain zone Permit required, Yearly permit process No permit required, No change No permit required, no No change 'rovisions districts (all retail cardboard boxes to display on public does not support cardboard boxes, no located in these prohibited, TOV land and private property leasing program lease program districts lease ro ram VIII. ATTACHMENTS Attachment A -Vicinity Map Attachment A 1.12 Vail should accommodate most of the additional growth in existing developed areas (infill areas). 3. The extent to which the text amendment demonstrates how. conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and, Staff believes that a shortage of professional and business office space exists within the Town. This is a condition which Staff believes has increased since the formation of the Housing District in 2001. To exclude this zone district of the light pedestrian and automobile traffic associated with Professional Offices and Business Offices is no longer applicable to the Town's stated desires to keep residents living and working in the Town of Vail. In fact, the provision to request a Conditional Use- Permit for such uses may actually encourage the live/work combination of uses which has proved so beneficial to the livelihood of so many other communities. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land ,use regulations consistent with municipal development objectives; and, If approved, this amendment provides the opportunity for a harmonious, convenient, and workable relationship among land use regulations by allowing Professional Offices and Business Offices to be located with the Housing (H) District, subject to the issuance of a Conditional Use Permit. Prior to granting a Conditional Use Permit for a business or professional office in the district, the applicant must demonstrate compliance with the proposed use specific criteria outlined in Section 12-16-7 of the Vail Town Code. 5. Such other factors and criteria the Commission and/or Council deems applicable to the proposed text amendment. VII. STAFF RECOMMENDATION The Community Development Department recommends that the Planning & Environmental Commission forwards a recommendation of approval of the text amendment to Section 12-61-3, Conditional Uses, Vail Town Code, to allow "Professional Offices" and "Business Offices" as Conditional Uses within the Housing (H) District. Staff's recommendation of approval is based upon the review of the criteria outlined in Section VI of this memorandum and the evidence and testimony presented. Suggested Motion/Finding Should the Planning & Environmental Commission .choose to forward a recommendation of approval of this text amendment to the Vail Town Council, staff recommends that the following finding be made as part of the motion, "Upon review of the text amendment. to Section 12-6/-3, Conditional Uses, Vail Town Code, to include Professional Offices and Business Offices as conditional uses within the Housing (H) District and setting forth details in regard thereto, tl~e Commission. finds that the amendment complies with each of the criteria listed in Section VI of the memorandum to the Planning & Environmental Commission, dated October 8, 2007." 7 Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off-street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with Municipal development objectives. ~ . 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the Town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community." This request is for an amendment to only the Conditional Uses section of the Housing (H) District, and a process for review of specific requests to locate Professional Offices or Business Offices within this district is still applicable. Therefore, Staff believes that each of the above-described purposes of the Zoning Regulations will be evaluated at the time that such request is made. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, The proposed text amendment is an effort to allow for specific review of Professional Offices and Business Offices within the Housing (H) District. In addition, Staff believes that the amendment will benefit the Town in the future by allowing office uses within the Housing District. Specifically, such use, perhaps as a "live/work" development, is believed by Staff to be complimentary to employee housing and development objectives set forth by the Town and is compliant with the stated purpose of the Housing District. The following goal(s) of the Vail Comprehensive Plan specifically support Staffs recommendation: General Growth /Development 1.1 Vail should continue to grow maintaining a balance betwee recreational uses to serve both resident. in a controlled environment, n residential, commercial and the visitor and the permanent 6' V. APPLICABLE PLANNING DOCUMENTS Pursuant to Section 12-2-2, Definitions, "Business Office" and "Professional Office" are defined as, OFFICE, BUSINESS: An office for the conduct of general business and service activities, such as offices of real estate or insurance agents, brokers, secretarial or stenographic services, or offices for general business activities and transactions, where storage, sale, or display of merchandise on the premises occupies less than ten percent (10%) of the floor area. OFFICE, PROFESSIONAL: An office for the practice of a profession, such as offices of physicians, dentists, lawyers, architects, engineers, musicians, teachers, accountants, and others who through training are qualified to perfor~r- services of a professional nature, where storage, sale, or display of merchandise on the premises occupies less than ten percent (10%) of the floor area. VI. Official Zoning Map of the Town., of Vail The subject property is zoned High Density Multiple Family (HDMF), according to the Official Zoning Map of the Town of Vail. However, the Applicant is proposing, concurrent with this request, to re-zone the property to the Housing (H) District. Vail Land- Use Plan This parcel is currently identified on the Vail Land Use Plan map as Medium Density Residential (MDR), however zoning an the property is High Density Multiple Family (HDMF) District. The Medium Density Residential land use category is the home to five (5) areas in Town presently zoned High Density Multiple Family (HDMF). According to the plan. (amended March, 2006), approximately 421 acres (12.5%) of land area within the Town is designated in the Medium Density Residential (MDR) land use category, while 68.5 acres (.02%) of land area is designated as High Density Residential (HDR). The only other parcels zoned Housing District (Middle Creek Employee Housing and Timber Ridge) are identified on the. Land Use Map as being. High Density Residential (HDR). Additionatlly, approximately 15 acres (<1%) of land area within the Town is designated in the Cammunity Office (CO) land use category.. REVIEW CRITERIA The review criteria and factors for consideration for a text amendment application are established by the provisions of Section 12-3-7, Amendments, Vail Town Code. 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and, The general and specific purposes of the Zoning Regulations are prescribed in Section 12-1-2, Purpose, of the Vail Town Code. The following purposes are listed in Section 12-1-2, "General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. 5 BACKGROUND IV. Solar Vail History Solar Vail was originally constructed in 1976 and includes eleven (11) deed restricted employee housing units (EHUs) and 13 dwelling units (DUs), for a total of 24 units owned and used exclusively by Sonnenalp Properties as employee housing in support of the Sonnenalp Hotel operations. The Solar Vail property is currently zoned High Density Multiple Family (HDMF) District, however, concurrent with this request for a text amendment; the Applicant is requesting review of a request for final recommendation to re-zone the property to the Housing (H) District to allow for re-development. Zoning Regulations On March 6, 2001, the Vail Town Council enacted Ordinance No. 3, Series 2001, adopting the Housing (H) District for the Town of Vail. Since the time of adoption, Staff has identified the following changes made to the Housing (H) District which affect conditional uses allowed within the district: Chapter 12-61-3 (Conditional Uses): ^ Ord. 29, 2005: Child daycare facilities; public facilities; public recreational facilities (added) ^ Ord. 19, 2001: Type VI employee housing units (added); the words "deed restricted" stricken from section ^ Ord. 3, 2001: Initial adoptions of the Housing district. The proposed text amendment to add "Business Offices" and "Professional Offices" as a Conditional Use within this district would be the third amendment to the Conditional Uses within the Housing District since its inception in 2001. ROLES OF REVIEWING BODIES Order of Review: Generally, text amendment applications will be reviewed by the Planning and Environmental Commission and the Commission will forward a recommendation to the Town Council. The Town Council will then review the text amendment application. Planning and Environmental Commission: The Planning and Environmental Commission is responsible for the review of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code, and forwarding of a recommendation to the Town Council. Design Review Board: The Design Review Board has no review authority over a text amendment to the Vail Town Code. Town Council: The Town Council is responsible for final approval, approval with modifications, or denial of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code. The Town Council may also call up a decision of the Planning and Environmental Commission and/or Design Review Board. 4 8. Dwelling units are not the primary use of the property. The GRFA for dwelling units shall not exceed thirty percent (30%) of the total GRFA constructed on the property, and C. Dwelling units are only created in conjunction with employee housing, and D. Dwelling units are compatible with the proposed uses and buildings on the site and are compatible with buildings and uses on adjacent properties. Outdoor patios. Public and private schools. Public buildings, grounds and facilities. Public parks and recreational facilities. Public utilities installations including transmission lines and appurtenant equipment. Type VI employee housing units, as further regulated by chapter 13 of this Title. Section 12-16-7: Use Specific Criteria and Standards (in part): The following criteria and standards ,shall be applicable to the uses listed below in consideration of a conditional use permit. These criteria and standards shall be in addition to the criteria and findings required by section 12-16-6 of this chapter. A. Uses And Criteria: 15. Business Offices and Professional Offices in the Housing (H) District: a. Offices for physicians, dentists and similar medical practices shall be excluded in the Residential Cluster zone district. b. Business and professional offices shall be secondary to the residential use of the District. The net floor area of the office use shall be no greater than 15% of the allowable gross residential floor area of the development site. c. The sale of merchandise shall be prohibited. d. Off-street parking shall be provided in accordance with the provisions of Chapter 12-10 of this title and shall be clearly separate from the area designated for residential parking. e. No overnight parking or storage of commercial vehicles associated with the professional or business office use shall be permitted. f. Signage shall be permitted in accordance with Section 11-6-3- A: Business Signs within Sign District 1 (Title 11: Sign Regulations, VaiO Town Code) and shall be subject to review by the Design Review Board. g. The number of employees allowed in a business office or professional office within the Housing District shall not exceed one employee for each 200 square feet of net floor area. h. Homeowner Association approval shall be required of all Conditional Use Permit applications for a Professional Office or a Business Office within the Housing District pursuant to Section 12-11-4:B:D, Application Form, Vaii Town Code. 3 y • Development of a 38,372 sq: ft. (net floor area) building containing sixty three (63) deed restricted employee housing units • Development of approximately 4,404 sq. ft. (approximately 11.5% of total net floor area of the development) of professional and business office space for use by Sonnenalp Properties, as well as other professional or business office uses. Therefore, this text amendment has been specifically requested by the Applicant to allow for limited amounts of professional and business offices to be located in the proposed Solar Vail building. Staff believes that this text amendment will benefit the Town in the future by allowing office uses within the Housing District. Specifically, such use, perhaps as a "live/work" development, is believed by staff to be complimentary to employee housing and development goals set forth by the Town and is compliant with the stated purpose of the Housing District. Text Amendment If this text amendment is approved, a property owner in the Housing District could submit an application for consideration of a conditional use permit to operate a professional or business office in the District. Presently, according to Section 12-61-3 Conditional Uses, Vail Town Code, professional and business offices are not allowable conditional uses in the Housing District. The proposed amendments to Section 12-61-3 and Section 12-16-7 are indicated in bold (additions) and ~~~~~°-~"~^~ ~^" (deletions) as follows: Section 72-6/-3; Conditional Uses (in part): The following conditional uses shall be permitted in the H district, subject to issuance of a conditional use permit in accordance with fhe provisions of chapter 16 of this title: Commercial uses which are secondary and incidental (as determined by the planning and environmental commission) to fhe use of employee housing and specifically serving the needs of the residents of the development, and developed in conjunction with employee housing, in which case the following uses maybe allowed subject to a conditional use permit: Banks and financial institutions. Child daycare facilities. Eating and drinking establishments. Funiculars and other similar conveyances. Health clubs. Personal services, including, but not limited to, laundromats, beauty and barber shops, tailor shops, and similar services. Retail stores and establishments. Business offices and professional offices as further regulated by Section 12-16-7 of this title. Dwelling units (not employee housing units) subject to the following criteria to be evaluated by the planning and environmental commission: A. Dwelling units are created solely for the purpose of subsidizing employee housing on the property, and 2 Attachment B MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: October 8, 2007 SUBJECT: A request for_ a final recommendation to the Vail Town Council of a text amendment to Section(s) '12-61-3, Conditional Uses, and 12-16-7, Use Specific Criteria and Standards, Vail Town Code, to add "Professional Offices" and "Business Offices" to the list of allowable conditional uses in the Housing (H) District, and setting forth details in regard thereto. (PEC07-0059) Applicant: Sonnenalp Properties, Inc., represented by Henry Prai:t, Gwathmey Pratt Schultz Lindall Architects Planner: Scot Hunn I. SUMMARY The Applicant, Sonnenalp Properties, Inc., represented by Henry Pratt, Gwathmey Pratt Schultz Lindall Architects (GPSL), is requesting a final review of a recommendation to the Vail Town Council of a text amendment to Section 12-61-3, Conditional Uses, Vail Town Code, to add "Professional Offices" and "Business Offices" to the list of allowable conditional uses in the Housing (H) District. As proposed, the text amendment would allow for the operation of both professional and business offices, as further defined in Section 12-2-2, Definitions, Vail Town Code, and with certain limitations and restrictions on each use, in the Housing District. Based upon the review of the criteria outlined in Section V of this memorandum, tfie Community Development Department is recommending that the Planning & Environmental Commission forwards a recommendation of approval of the proposed text amendment to the Town Council. I1. DESCRIPTION OF THE REQUEST Request and Rationale for Text Amendment The Applicant, Sonnenalp Properties, Inc., represented by Henry Pratt, GPSL, is requesting a final review of a recommendation to the Vail Town Council of a text amendment to Section(s) 12-61-3, Conditional Uses, and 12-16-7, Use Specific Criteria and Standards; Vail Town Code, to add "Professional Offices" and "Business Offices" to the list of allowable conditional uses in the Housing (H) District. Solar Vail is located at 501 North Frontage Road West and is currently zoned High Density Multiple Family (HDMF) District. However, concurrent with this request for a text amendment, the Applicant is requesting review of a request for final recommendation to re-zone the property to the Housing (H) District to allow for re-development of the property, inclusive of: • Demolition of the existing structure 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 5. 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 6. 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 7. 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 20th day of November, 2007, and a public hearing for second reading of this Ordinance set for the 4th day of December, 2007, at 6:00 P.M. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance No. 35, Series of 2007 4 C. Dwelling units are only created in conjunction with employee housing, and D. Dwelling units are compatible with the proposed uses and buildings on the site and are compatible with buildings and uses on adjacent properties. Outdoor patios. Public and private schools. Public buildings, grounds and facilities. Public parks and recreational facilities. Public utilities installations including transmission lines and appurtenant equipment. Type VI employee housing units, as further regulated by chapter 13 of this title. Section 3. Section 12-16-7 (in part) is hereby amended as follows: 15. Business Ofi`ices and Professional Ofi`ices in the Housing (H) District:. a. Offices for physicians, dentists and similar medical practices shall be excluded in the Housing (H) District. b. Business and professional ofiFices shall be secondary to the residential use of the District. The net floor area of the ofirice use shall be-not greater than 15% .of the net floor area of the development site., c. The sale of merchandise shall be prohibited. d. Ofi=street parking shall be provided in accordance .with the provisions of Chapter 12-10 of this title .and shall be clearly separate from the area designated for residential parking. e. No overnight parking or storage of commercial vehicles associated with the professional or business ofi`ice use shall be permitted. f. Signage shall be permitted in accordancde with Section 11-6-3-A: Business Signs within Sign District 1 (Title 11: Sign Regulations, Vail Town Code) and shall be subject to design review. g. The number of employees allowed in a business office or professional ofi`ice within the Housing District shall not exceed one employee for each 200 square feet of net floor area. h. Homeowner Association or property owner approval shall be required of all Conditional Use Permit applications for a Professional Ofi`ice or a Business Office within the Housing (,H) District pursuant to Section 12-11-4: B:D, Application Form, Vail Town Code. Section 4. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Down Council hereby declares it would have Ordinance No. 35, Series of 2007 3 Section 1. The purpose of this ordinance is to amend Section 12-61-3, Conditional Uses, Vail Town Code, to add "Professional Offices and Business Offices" to the list of allowable conditional uses in the Housing (H) District, and to amend Section 12-16-7, Use Specific Criteria and Standards, Vail Town Code, to add paragraph 15, "Business Offices and Professional Offices in the Housing (H) District". (Text that is to be deleted is s#isker~. Text that is to be added is bold. Sections of text that are not amended may be omitted.) Section 2. Section 12-61-3, Conditional Uses (in part) is hereby amended as follows: The following conditional uses shall be permitted in the H district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of Phis title: Commercial uses which are secondary and incidental (as determined by the planning and environmental commission) to the use of employee housing and specifically serving the needs of the residents of the development, and developed in conjunction with employee housing, in which case the following uses maybe allowed subject to a conditional use permit: Banks and financial institutions. Child daycare facilities. Eafing and drinking establishments. Funiculars and other similar conveyances. Health clubs. . Personal services, including, but not limited to, laundromats, beauty and barber shops, tailor shops, and similar services. Retail stores and establishments. Business offices and professional offices as further regulated by Section 12-16-7 of this title. Dwelling units (not employee housing units) subject to the following criteria to be evaluated by fhe planning and environmental commission: A. Dwelling units are created solely for the purpose of subsidizing employee housing on the property, and 8. Dwelling units are not the primary use of the property. The GRFA for dwelling units shall not exceed thirty percent (30%) of the total GRFA constructed on the property, and Ordinance No. 35, Series of 2007 2 Attachment A ORDINANCE NO. 35 SERIES OF 2007 ORDINANCE NO. 35, SERIES OF 2007, AN ORDINANCE AMENDING SECTION 12-61-3, CONDITIONAL USES, AND SECTION 12-16-7, USE SPECIFIC CRITERIA AND STANDARDS, VAIL TOWN CODE, TO ADD "PROFESSIONAL OFFICES AND BUSINESS OFFICES" TO THE LISTOF ALLOWABLE CONDITIONAL USES IN THE HOUSING (H) DISTRICT, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Planning and Environmental Commission of the Town of Vail has held public hearings on the proposed amendments in accordance with the provisions of the Vail Town Code; and WHEREAS, the Planning and Environmental Commission of the Town of Vail recommended approval of these amendments at its October 8, 2007 meeting, and has submitted its recommendation to the Vail Town Council; and WHEREAS, the Planning and Environmental Commission finds that the proposed amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and are compatible with the development objectives of the Town; and WHEREAS, the Planning and Environmental Commission finds that the proposed amendments promote the health, safety, moralls, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its estak>lished character as a resort and residential community of the highest quality; and WHEREAS, the Vail-Town Council considers it in the interest of the public health, safety, and welfare to adopt these amendments to the; Town Code. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Ordinance No. 35, Series of 2007 IV. STAFF RECOMMENDATION The Department of Community Development recommends that the Vail Town Council approve Ordinance No. 35, Series of 2007, on first reading to amend Section 12-61-3, Conditional Uses, Vail Town Code, to add "Professional Offices and Business Offices" to the list of allowable conditional uses in the Housing (H) District, and setting forth details in regard thereto. Staff's recommendation is based upon the review of the criteria noted in Section VI of the October 8, 2007 Planning and Environmental Commission Staff memorandum (Attachment B) and the evidence and testimony presented. Should the Town Council choose to approve Ordinance No. 35, Series of 2007, on first reading, the Department of Community Development recommends the Town Council make the following findings: 1. That the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, based upon the review outlined in Section VI of the Staff's October 8, 2007, memorandum to the Planning and Environmental Commission; and 2. That the amendments further the general and specific purposes of Title T 2, Zoning Regulations, Vail Town Code, based upon the review outlined in Section VI of the Staff's October 8, 2007, memorandum to. the Planning and Environmental Commission; and 3. That fhe amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner That conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality, based upon the review outlined in Section Vl of the Staff's October 8, 2007, memorandum to the Planning and Environmental Commission. V. ATTACHMENTS A. Ordinance No. 35, Series of 2007 B. Planning and Environmental Commission Staff memorandum dated October 8, 2007 MEMORANDUM TO: Town Council FROM: Community Development Department DATE: November 20, 2007 SUBJECT: First reading of Ordinance No. 35, Series of 2007, an ordinance amending Sections 12-61-3, Conditional Uses, and 12-16-7, Use Specific Criteria and Standards, Vail Town Code, to add "Professional Offices and Business Offices" to the list of allowable conditional uses in the Housing (H) District, and setting forth details in regard thereto. (PEC07-0059) Applicant: Sonnenalp Properties, Inc., represented by Gwathmey Pratt Schultz Lindall Architects Planner: Scot Hunn DESCRIPTION OF THE REQUEST The Applicant, Sonnenalp Properties, Inc., represented by Henry Pratt, Gwathmey Pratt Schultz Lindall Architects (GPSL), is requesting a first reading of Ordinance No. 35, Series of 2007, an ordinance amending Sections 12-61-3, Conditional Uses, and 12-16- 7, Use Specific Criteria and Standards, Vail Town Code, to add "Professional Offices and Business Offices" to the list of allowable conditional uses in the Housing (H) District, and setting forth details in regard thereto. As proposed, the text amendment would allow for the operation of both professional and business offices within the H District, as further defined in Section 12-2-2, Definitions, Vail Town Code, and with certain limitations and restrictions on each use as further set forth in Section 12-16-7, Use Specific Criteria and Standards. II. BACKGROUND On October 8, 2007, the Town of Vail Planning and Environmental Commission (PEC) held a public hearing on the request for a text amendment to the Vail Town Code. Upon consideration of the request, the Commission unanimously approved a motion recommending approval of the text amendment request to the Vail Town Council. Additional background pertaining to the request, as well as, details of the proposed text amendments, applicable criteria, and applicable findings are included in the October 8, 2007 Planning and Environmental Commission Staff memorandum (Attachment B). III. CRITERIA FOR REVIEW The criteria outlined in section VI o1` the Staffs memorandum to the Planning and Environmental Commission, dated October 8, 2007, shall be used as the principal criteria in evaluating the merits of the proposed amendment to the Town Code. Attachment A 13 X. ATTACHMENTS A. Vicinity Map B. Copy of the applicant's document(s) entitled Solar Vail Rezoning Request dated September 6, 2007 (cover letter and compliance analysis) D. Public notice 12 IX. STAFF RECOMMENDATION The Community Development Department recommends that the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for a zone district boundary amendment, pursuant to 12-3-7, Amendments, Vail Town Code, tc~ allow for a rezoning of a property from High Density Multiple-Family (HDMF) District to Housing (H) District, located at 501 North Frontage Road, Lot 8, Block 2, Vail Potato Patch (a complete legal description is available for inspection at the Town of Vail Community Development Department). This requested recommendation i;s to rezone Lot 8 to Housing District. Staff's recommendation is based upon thE: review of the criteria outlined in Section VIII of this memorandum and the evidences and testimony presented. Should the Planning and Environmental Commission choose to approve this zone district boundary amendment, the Community Development Department recommends the Commission pass the following motion: The Planning and Environmental Commission is forwarding a recommendation of approval to the Vail Town Council for a zone district boundary amendment, pursuant to 12-3-7, Amendments, Vail Town Code, to allow for a rezoning of a property from High Density Multiple-Family (HDMI=) District to Housing (H) District, located at 501 North Frontage Road, Lot 8, Block 2, Vail Potato Patch (a complete legal description is available for inspection at the Town of 1/ail Community Development Department). This forward of a recommendation of approval is to rezone Lot 8 to Housing (H) District. Should the Planning and Environmental Commission choose to approve this zone district boundary amendment, the Community Development Department recommends, the Commission pass the following findings: "Before recommending and/or granting an approval of an application for a zone district boundary amendment the Planning and Environmental Commission and the Town Council shall make the following findings wifh respect to the requested amendment: That the amendment is consistent with the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and compafible with the development objectives of the Town; and 2. That the amendment is compatible with and suitable to adjacent uses and appropriate for 1`he surrounding areas; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." proximity to public transportation, it could be reasonably expected or argued that beneficial impacts (reductions in air, water and noise pollution) could result from the rezoning and redevelopment of the site. Specifically, the location of increased density within the Town and on a site already used for employee housing may actually result in a reduction in vehicle miles traveled as a result of more employees being housed within the Town boundaries and, specifically within walking distance to their place of employment. As well, proximity of the site to public transportation will likely have beneficial impacts, overall, to the Town's infrastructure and the natural environment. In addition, the redevelopment of the Solar Vail site may provide opportunities to 6. The extent to which the zone district amendment is consistent with the purpose statement of the proposed zone district. The Housing District is proposed for the subject properties. The proposed zone district amendment is consistent with the intended purpose of that zone district. A copy of the purpose statement of the Housing District is provided in Section V of this memorandum. 7. The extent to which the zone district amendment demonstrates how conditions have changed since the zoning designation of the subject property was adopted and is no longer appropriate. Since the original adoption of zoning on the property, the Town of Vail has untaken certain specific actions to encourage and regulate the provision of employee housing within the Town. Such actions are in resonse, in part, to changing market conditions relative to the number of affordable housing units available to certain sectors of the population working within the Town's boundaries. As such, the Town has adopted clearly identifiable goals and objectives for the continued provision - preservation, upgrading and development - of employee housing units within all areas of the Town. In order to ensure that these goals and objectives for development are carried out, the Town adopted the Housing District. If the requested rezoning is approved, the Applicant will be afforded the opportunity to redevelop the Solar Vail property with the Town's goals in mind. To that end, although the High Density Multi- Family District permits continued use and redevelopment of the site for employee housing uses, Staff believes this rezoning is necessary and appropriate to more fully achieve the employee housing goals of the Town. Specifically, Staff believes the rezoning and proposed redevelopment of the site to increase the number of allowable employee housing units achieves the following objective as stated in the Vail Land Use Plan: 5.3 Affordable employee housing should be made available through private efforts, assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 8. Such other factors and criteria as the Commission and/or Council deem applicable to the proposed rezoning. 10 efficient use of land. In addition, the provision of a detailed development plan which will respond to any site specific requirements or recommendations by the Planning and Environmental Commission ensures a workable relationship among land uses. 4. The extent to which the zone district amendment provides for the growth of an orderly viable community and does not constitute spot zoning as the amendment serves the best interests of the community as a whole. The purpose of the housing district is as follows: "The housing district is intended to provide adequate sites for employee housing which, because of fhe nature and characteristics of employee housing, cannot be adequately regulated by fhe development standards prescribed for other residential zone districts. It is necessary in this zone district to provide development standards specifically prescribc~d for each development proposal or project to achieve the purposs~s prescribed in section 12-1-2 of this title and to provide for the public; welfare. Certain nonresidential uses are allowed as conditional uses, which are intended to be incidental and secondary to the residential uses of the district. The housing district is intended to ensure that employee housing permifted in the zone district is appropriately located and designed to meet the needs of residents of Vail, to harmonize with surrounding uses, and to ensure adequate light, air, open spaces, and other amenities appropriate to the allowed types of uses" The proposed rezoning provides a site which is adequate and appropriate for the development, or in this case preservation and upgrading, of employee housing within the Town, thus implementing the stated purpose of the Housing District, .as well as specific goals and policies of the Town. This rezoning will create a zone district consistent with the existing ar~d proposed use of the property. The proposed rezoning and development plan provide for the development of an orderly viable community consistent with the Town's development interests as expressed Vail Comprehensive Plan. Staff believes that this amendment furthers the development objectives of the Town and serves the best interest of the community as a whole. 5. The extent to which the zone district amendment results in adverse or beneficial impacts on the natural environment, including but not limited to water quality, air quality, noise, vegetation, riparian corridors, hillsides and other desirable natural features. The proposed rezoning will not change the existing character and uses currently present on the subject property. Although the proposed use for the site will increase density, staff does not foresee any adverse impacts on the natural environment to include water quality, air quality, noise, vegetation, etc. In fact, given the proposed increase in density and the 5. Residential 5.1 Additional residential growth should continue to occur primarily in existing, platted areas and as appropriate in new areas where high hazards do not exist. 5.3 Affordable employee housing should be made available through private efforts, assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 5:4 Residential growth should keep pace with the market place demands for a full range of housing types. 5.5 The existing employee housing base should be preserved and upgraded. Additional employee housing needs should be accommodated at varied sites throughout the community. The requested rezoning has been specifically requested by the Applicant and is supported by Staff in order to more efficiently and effectively facilitate the redevelopment of the Solar Vail property for the purpose of preserving and upgrading existing employee housing. Therefore, the proposed rezoning is consistent and compatible with the Vail Comprehensive Plan and the Town's development objectives. 2. The extent to which the zone district amendment is suitable with the existing and potential land uses on the site and existing and potential, surrounding Land uses as set out in the Town's adopted planning documents. The Housing District establishes zoning that is consistent with both existing and proposed uses on the subject property. Currently, the Solar Vail property contains 24 deed restricted and non-deed restricted "for- rent" employee housing units serving the needs of Sonnenalp Hotel employees. Staff believes that the permitted and conditional uses listed within the Housing District are suitable uses to be adjacent to the remaining properties. 3. The extent to which the zone district amendment presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives. The Housing District is consistent with the existing and proposed use of the property. The proposed zone district implements specific goals of the Vail Land Use Plan. Staff believes that the proposed rezoning presents a harmonious, convenient, and workable relationship with land uses in the area consistent with the existing and proposed use of the property. For example, while the overall density of development on the subject property will increase as a result of the zone district boundary. amendment, the continued use of the site as employee housing presents a convenient location for employees to live within the Town due to its proximity and access to pedestrian ways and public transportation, as well as an VIII. CRITERIA AND FINDINGS Amendment to the Official Zoning Map of the Town of Vail (rezoning) Chapter 3, Administration and Enforcement, Title 12, Zoning Title, of the Vail Town Code authorizes amendments to the Official Zoning Map of the Town of Vail. Pursuant to Section 12-3-7, Amendments, in part, "an application to amend the district boundaries of the Zoning Map may be initiated by petition of any resident or property owner in the Town." Furthermore, Section 12-3-7 C pre>cribes the criteria and findings the Planning and Environmental Commission and Z'own Council shall consider with respect to a request to amend the Zoning Map. The applicant is seeking a recommendation of approval to rezone one property from High Density Multi-Family (HDMF) District to Housing (H) District. According to Section 12-3-7 C, of the Vail Town Code, Before acting on an application for a zone district boundary amendment, the Planning and Environmental Commission and Town Council shall consider tr-e following factors with respect to the requested zone district boundary amendment: 1. The extent to which the zone district amendment is consistent with all the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town. Staff has reviewed the proposed rezoning request and found it to be in compliance with the multiple elements of the Vail Comprehensive Plan. Within Section V of this memorandum staff provided the applicable Policies and Goals identified in the Vail Land Use Plan which apply to this request. SpecificaAy, the following goals or objectives form the basis for Staff's recommendation that this rezoning complies with or is consistent with the Vail Comprehensive Plan: 7. General Growth/C~evelopment 1.1 Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.3 The quality of development should be maintained and upgraded whenever possible. 1.12 Vail should accommodate most of the additional growth in existing developed areas (infill areas). Development Standard HDMF H Lot Area: 10,000 sq. ft. min. Per Development Plan Setbacks: Front: 20' 20' or per Dev. Plan Sides: 20' 20' ar per Dev. Plan Rear: 20' 20' or per Dev. Plan Height: Flat/Mansard Roof: Sloped Roof: 45' max. 48' max. Per Development Plan Per Development Plan Density Control: GRFA: sq. ft. Site Coverage: Landscaping:*** Parking: Note: 12.7 DUs (25 DUs/Acre)* (EHUs not counted) Per Development Plan 16,921 sq. ft. (76 sq. ft. Per Development Plan per 100 sq. ft. buildable area) 23,958 sq. ft. (55%) 13,068 sq. ft. (30%) Per Chapter 10 of the Zoning Regulations**** 23,958 sq. ft. (55%)** 13,068 sq. ft. (30%) Per Chapter 10 of the Zoning Regulations (or Per Development Plan)***** Density calculations based on "buildable area"; or .51 acres of land with slopes less than 40%. *" Site coverage may be increased at the discretion of the Planning and Environmental Commission if 75% or more of required parking spaces are located underground or are enclosed. ""' Minimum width and length of any area qualifying as landscaping shall be fifteen (15') feet with a minimum area of 300 sq. ft. ~`"' In the HDMF District, at least 75% of the required parking shall be located within the main building or buildings and hidden from public view or shall be completely hidden from public view from adjoining properties within a landscaped berm. "''*'" No parking or loading area shall be located within any required setback. At the discretion of the Planning and Environmental Commission, variations to ,the parking standards outlined in Chapter 10 of this title may be approved during the review of a development plan subject to a parking management plan (subject to certain review criteria). SURROUNDING LAND USES AND ZONING - Land Use Zoning North: Open Space Natural Area Preservation (NAP) East: Open Space Natural Area Preservation (NAP) West: Public/Semi-Public (School) General Use South: State Highway/I-70 No Zoning 6 1.2 The quality of the environment including air, water and other natural resources s,hou/d be protected as the Town grows. 1.3 The quality of development should be maintained and upgraded whenever possible. 1.92 Vail should accommodate most of the additional growth in existing developed areas (infill areas). 2. Skier /Tourist Concerns 2.1 The community should emphasize its role as a destination resort while accommodating day visitors. 2.2 The ski area owner, the business community and the Town leaders should work together closely to make existing facilities and the Town function more efficiently. 5. Residential 5.1 Additional residential growth should continue to occur primarily in existing, p/atted~ areas and as appropriate in new areas where high hazards do not exist. 5.3 Affordable employee housing should be made available through private efforts, assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 5.4 Residential growth should keep pace with the market place demands for a full range of housing types. 5.5 The existing employee housing base should be preserved and upgraded. Additianal employee housing needs should be accommodated at varied sites throughout the community. VI. ZONING ANALYSIS The following zoning analysis, provides a comparison of the development potential currently allowed under High Density Multi-Family District (HDMF) to that of the proposed Housing (H) District. Address/Legal Description: 501 ~~lorth Frontage Road West, Lot 8, Block 2, Vail Potato Patch, Filing Parcel Size: 1.0 acre (43,560 sq. ft.) Buildable Area: .51 acre (22,264 sq. ft. < 40% slope) Existing Zoning: High Density Multi-Family (HDMF) Proposed Zoning: Housing (H) Land Use Designation: Medium Density Residential Hazards: 40% Slope; Medium Severity Rockfall 5 apartment, condominium and lodge uses, and to maintain the desirable residential and resort qualities of the zone district by establishing appropriate site development standards. Certain nonresidential uses are permitted as conditional uses, which relate to the nature of Vail as a winter and summer recreation and vacation community and, where permitted, are intended to blend harmoniously with the residential character of the zone district. Chapter 6, Article I -,Housing (H) District 12-61-1: PURPOSE: The housing district is intended to provide adequate sites for employee housing which, because of the nature and characteristics of employee housing, cannot be adequately regulated by the development standards prescribed for other residential zone districts. If is necessary in this zone district to provide development standards specifically prescribed for each development proposal or project to achieve the purposes prescribed in section 12-1-2 of this title and to provide for the public welfare. Certain nonresidential uses are allowed as conditional uses, which are intended to be incidental and secondary to the residential uses of the district. The housing district is intended to ensure that employee housing permitted in the zone district is appropriately located and designed to meet the needs of residents of Vail, to harmonize with surrounding uses, and to ensure adequate light, air, open spaces, and other amenities appropriate to the allowed types of uses. Vail Land Use Plan Chapter 11 -Land Use Plan Goals/Policies The goals articulated here reflect the desires of the citizenry as expressed through the series of public meetings that were held throughout the project. A set of initial goals were developed which were then substantially revised after different types of opinions were brought out in the second meeting. The goal statements were developed to reflect a general consensus once the public had had the opportunity to reflect on the concepts and ideas initially presented. The goal statements were then revised through the review process with the Task Force, the Planning and Environmental Commission and Town Council and now represent policy guidelines in the review process for new development proposals. These goal statements should be used in conjunction with the adopted Land Use Plan map, in the . evaluation of any development proposal. The goal statements which are reflected in the design of the proposed Plan are as follows (in part): 7, General Growth /Development 1.1 Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve-both the visitor and the permanent resident. 4 According to the plan (amended March, 2006), approximately 421 acres (12.5%) of land within the Town is designated iin the Medium Density Residential (MDR) land use category, while 68.5 acres (.02°%) of land is designated as High Density Residential (HDR). The only other parcels zoned Housing District (Middle Creek Employee Housing and Timber Ridge) are identified on the Land Use Map as being High Density Residential. Additionally, approximately 15 acres (< 1%) of land within the Town is designated in the Community Office (CO) land use category. IV. ROLES OF THE REVIEWING BODIES Rezoning/Zone District Boundary Amendment Planning and Environmental Corrrmission: The Planning and Environmental Commission is advisory to the Town Council. The Planning and Environmental Commission shall review the proposal and make a recommendation to the Town Council on the compatibility of the proposed zoning with surrounding uses, consistency with the Vail Comprehensive Plans, and impact on the general welfare of the community. Design Review Board: The Design Review Board has no review authority on zoning/rezonings. Town Council: The Town Council is responsible for final approval/denial of a zoning/rezoning. The Town Council shall review and approve the proposal based on the compatibility of the proposed zoning with surrounding uses, consistency with the Vail Comprehensive Plans, and impact on the general welfare of the community. V. APPLICABLE PLANNING DOCUN7ENTS Town of Vail Zoning Regulations (Title 12, Vail Town Code) Chapter 3 -Administration and Enforcement 12-3-7: AMENDMENT A. Prescription: The regulations prescribed in this title and the boundaries of the zone districts shown on the official zoning map maybe amended, or repealed by the Town Council in accordance with the prodecures prescribed in this chapter. Chapter 6, Article H -High Density Multiple Family (HDMF) District 12-6H-1: PURPOSE: The high density multiple-family district is intended to provide sites for multiple-family dwellings at densities to a maximum of twenty five (25) dwelling units per acre, together with such public and semipublic facilities and lodges, private recreation facilities and related visitor oriented uses as may appropriately be located in the same zone district. The high density multiple-family district is intended to ensure adequate light, air, open space, and other amenities commensurate with high density III. BACKGROUND Solar Vail History The subject property was annexed into the Town of Vail by Ordinance No. 8, Series of 1969, which became effective on August 23, 1969. Solar Vail was originally constructed in 1976 and includes eleven (11) deed restricted employee housing units (EHUs) and 13 dwelling units (DUs), for a total of 24 units owned and used exclusively by Sonnenalp Properties as employee housing in support of the Sonnenalp Hotel operations. The Solar Vail site was also approved for use as a telecommunications (cell) antenna "farm" site; housing multiple antennae for various co-users or providers. Current Proposal The Applicant is currently proceeding through the Town's development review process and, in combination with a concurrent application for a text amendment to allow for professional offices and business offices within the Housing (H) District, the Applicant proposes this rezoning to allow for re-development of the Solar Vail property, inclusive of: demolition of the existing structure development of a 38,372 sq. ft. (net floor area) building containing sixty three (63) deed restricted employee housing units development of approximately 4,404 square feet (approximately .11.5% of total net floor area of the development) of professional and business office space for use by Sonnenalp Properties, as well as other professional ar businesses Zoning Regulations The Solar Vail property is currently zoned High Density Multi-Family (HDMF). On August 7, 1973, the Vail Town Council enacted Ordinance No. 8, Series of 1973, adopting the Zoning Regulations for the Town of Vail and dividing the Town into twelve zone districts, including the HDMF District. On March 6, 2001, the Vail Town Council enacted Ordinance No. 3, Series of 2001, adopting the Housing (H) District for the Town of Vail. Since the time of adoption, Staff has identified the following changes made to the Housing (H) District: Chapter 12-61-3 (Conditional Uses): ^ Ordinance 29, Series 2005: Child daycare facilities; public facilities; public recreational facilities (added) ^ Ordinance 19, Series 2001: Type VI employee housing units (added); the words "deed restricted" were stricken ^ Ordinance 3, Series 2001: Initial adoption of the Housing District Land Use Designation and Zoning This parcel is currently identified on the Vail Land Use Plan map as Medium Density Residential (MDR), however zoning on the property is High Density Mufti-Family (HDMF) District. The Medium Density Residential land use category is the home to the five (5) areas in Town presently zoned High Density Multi-Family (HDMF). Attachment B MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: October 8, 2007 SUBJECT: A request for a final recommendation to the Vail Town Gouncil for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a rezoning of a property from High Density Multiple- Family (HDMF) District to Housing (H) District, located at 501 North Frontage Road, Lot 8, Block 2, Vail Potato Patch and setting forth details in regard thereto. (PEC07-0059) Applicant: Sonnenalp Properties, Inc., represented by Gwathmey Pratt Schultz Lindall Architects Planner: Scot Hunn I. SUMMARY The Applicant, Sonnenalp Properties, Inc., represented by Henry Pratt, Gwathmey Pratt Schultz Lindall Architects (GPSL), has submitted a request fora final recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a rezoning of a property from High Density Multiple-Family (HDMF) District to Housing (H) District, located at 501 North Frontage Road, Lot 8, Block 2, Vail Potato Patch (a complete legal description is available for inspection at the Town of Vail Community Development Department). The Applicant has submitted the application in anticipation of the redevelopment of the property known as Solar Vail. Staff is recommending that the Planning and Environmental Commission forwards a recommendation of approval of the proposed rezoning subject to the findings and conditions outlined in Section VIII of this memorandum. II. DESCRIPTION OF REQUEST The Applicant, Sonnenalp Properties, Inc., represented by Henry Pratt, GPSL, has submitted a request for a final recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for a rezoning oaf a property from High Density Multiple-Family (HDMF) District to Housing (H) District. The purpose of the application is to amend the Official Zoning Map of the Town of Vail whereby the platted Solar Vail property will be rezoned to Housing District in anticipation of the redevelopment of the property, specifically to allow for the applicant to propose a higher number of employee housing units (EHUs) on the site than would otherwise be permitted uncler current HDMF zoning. A vicinity map of the development site and surrounding area has been attached for reference. (Attachment A). 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 20th day of November, 2007 and a public hearing for second reading of this Ordinance set for the 4th day of December, 2007, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Dick Cleveland, Mayor Attest: Lorelei Donaldson, Town Clerk ORDINANCE NO 34, SERIES OF 2007 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Zoning Map Amendment: The purpose of this Ordinance is to amend the Official Zoning Map of the Town of Vail. The Official Zoning Map of the Town of Vail is hereby amended as follows: Lot 8B, Block 2, Vail Potato Patch, shall be re-zoned from High Density Multiple Family (HDMF) District to Housing (H) District, as illustrated on Exhibit A attached hereto. Section 2. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 3. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 4. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. ORDINANCE NO 34, SERIES OF 2007 ,. Attachment A ORDINANCE NO: 34 Series of 2007 AN ORDINANCE AMENDING THE OFFICII~L ZONING MAP OF THE TOWN OF VAIL IN ACCORDANCE WITH TITLE 12, ZONING REGULATIONS, CHAPTER 5, ZONING MAP; REZONING LOT 8B, BLOCK 2, VAIL POTATO PATCH ,FROM HIGH DENSITY MULTIIPLE FAMILY (HDMF) DISTRICT, TO HOUSING (Hy DISTRICT, AND SETTING FORTH DETAILS IN REGARDS THERETO. WHEREAS, Chapter 5, Zoning Map, of the Vail Town Code establishes the procedures for evaluating changes to the Official Zoning Map of the Town of Vail ("Zoning Map"); and WHEREAS, the proposed amendment to the "Zoning Map" has been reviewed in accordance with the prescribed requirements outlined in Sections 12-3-1 through 12-3-7 of the Zoning Regulations of the Vail Town Code; anti WHEREAS, on October 8, 2007, the Planning and Environmental Commission of the Town of Vail reviewed and forwarded a recommendai:ion of approval of the proposed amendment to the "Zoning Map" to the Vail Town Council in accordance with the criteria and findings outlined in Section 12-3-7 of the Zoning Regulations of thE: Town of Vail; and WHEREAS, the Vail Town Council finds the proposed amendment to the "Zoning Map" is consistent with the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan, the Vail Village Master Plan and is compatible with the development objectives of the Town; and WHEREAS, the Vail Town Council finds the amendment to the "Zoning Map" is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and WHEREAS, the Vail Town Council finds the amendment to the "Zoning Map" promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. ORDINANCE NO 34, SERIES OF 2007 IV. STAFF RECOMMENDATION The Community Development Department recommends that the Town Council approves Ordinance No. 34, Series of 2007, on first reading, an ordinance amending the Official Zoning Map for the Town of Vail in accordance with Title 12, Zoning Regulations, Chapter 5, Zoning Map; Rezoning Lot 8B, Block 2, Vail Potato Patch, from High Density Multi-Family (HDMF) District to Housing (H) District, and setting forth details in regard thereto. Staff's recommendation is based upon the review of the criteria noted in the October 8,, 2007, staff memorandum to the Planning and Environmental Commission and the evidence and testimony presented. Should the Town Council choose to approve Ordinance No. 34, Series of 2007, on first reading, the Community Development Department recommends the Town Council makes the following findings: "The Town Council finds that the applicant has demonstrated to the satisfaction of the Council, based upon the evidence and testimony presented: That the amendment is consistent with the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and compatible with the development objectives of the Town, based upon the review outlined in Section Vlll of the Staff's October 8, 2007, memorandum to the Planning and Environmental Commission; and 2. That the amendment is compatible with and suitable to adjacent uses and appropriate for the, surrounding areas, based upon the review outlined in Section Vlll of the Staff's October 8, 2007, memorandum to the Planning and Environmental Commission; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality, based upon the review outlined in Section Vlll of the Staff's October 8, 2007, memorandum to the Planning and Environmental Commission. " V. ATTACHMENTS A. Ordinance 34, Series of 2007 B. Memorandum to the PEC dated October 8, 2007 MEMGRANDUM TO: Town Council FROM: Community Development Department DATE: November 20, 2007 SUBJECT: First reading of Ordinance No. 34, Series of 2007, an ordinance amending the Official Zoning Map for the Town of .Vail in accordance with Title 12, Zoning Regulations, Chapter 5, Zoning Map; Rezoning Lot 8B, Block 2, Vail Potato Patch, from High Density Multi-Family (HDMF) District to Housing (H) District, and setting forth details in regard thereto. (PEC-0059) Applicant: Sonnenalp Properties, Inc., represented by Gwathmey Pratt Schultz Lindall Architects Planner: Scot Hunn I. SUMMARY The Applicant, Sonnenalp Properties, Inc., represented by Henry Pratt, Gwathmey Pratt Schultz Lindall Architects (GPSL), is requesting a first reading of Ordinance No. 34, Series 2007, an ordinance amending the Official Zoning Map for the Town of Vail in accordance with Title 12, Zoning Regulations, Chapter 5, Zoning Map, to allow for a rezoning of a property from High Density Multiple-Family (HDMF) District to Housing (H) District, located at 501 North Frontage Road, Lot 8B, Block 2, Vail Potato Patch. The Applicant has submitted the application in anticipation of the redevelopment of the property known as Solar Vail. II. BACKGROUND On October 8, 2007, the Town of Vail Planning and Environmental Commission (PEC) held a public hearing on the request to amend the Official Zoning Map of the Town of Vail. Upon consideration of the request, as well as, applicable criteria and findings, the Commission unanimously approved a motion recommending approval of the rezoning request to the Vail Town Council. Additional background pertaining to the request, as well as, details of the proposed zone district boundary amendment, applicable criteria, and applicable findings are included in the October 8, 2007 Planning and Environmental Commission Staff memorandum (Attachment B). III. CRITERIA FOR REVIEW The criteria outlined in section VIII of the Staff's memorandum to the Planning and Environmental Commission, dated October 8, 2007, shall be used as the principal criteria in evaluating the merits of the proposed amendment to the Official Zoning Map .of the Town of Vail. MEMORANDOM To: Town Council From: Art in Public Places Date: 15 November, 2007 Subject: Art in Public Places, Public Art Event 2008 Art in Public Places Program Summary The Town of Vail Art in Public Places. program was established in 1989 to create a public art program unique to Vail. It is one of many public art programs across the state and nation. The Art in Public Places Guidelines, adopted by town ordinance, list eight specific objectives for the program. The Guidelines call for the development of a diverse art collection, for public art to stimulate discussion and understanding about the visual arts and to encourage support for public art in private sector development. AIPP Board members work diligently to fulfill these objectives Background The Town Council adopted the Art in Public Places Strategic Plan in 2001. The Strategic Plan advocates for a permanent funding source for public art and a site integrated public art program. Soon after adoption of the Strategic Plan, the town council budgeted funding for the public art program from RETT revenue. AIPP worked towards integrating. art into Town of Vail parks and playgrounds. Artful trashcans, paving, and stonework have been added to the streetscape. One-of- a -kind drainage grates punctuate Bridge Street. Aspen leaves etched into the doors of Donovan Pavilion welcomes the visitor. An artist ensured the ship in Pirate Ship Park has exactly the right curves, the mast is of the right height and the bow sprit is of proper proportion. Strategic Direction In 2006 AIPP presented the Town Council with the prospect of taking the visual arts in Vail to a higher level. Focus groups informed the AIPP Board and the Town Council of the opportunity to broaden and promote cultural programs in Vail. AIPP identified the potential to promote cultural and economic vitality in Vail by staging annual events. Thus, Vail would acquire the reputation of a first class resort providing both recreation and visual arts activities. AIPP budgets in 2007 and 2008 have included funding for both integrated public art projects and visual art events. Description of Request AIPP would like to host a three day iron casting event beginning 18 January 2008.. Iron casting is elaborate, laborious and performance oriented. The performance, which aims to promote the understanding and advancement of the 1 5000 year old process, involves several thousand pounds of metal being poured. The event consists of two nights of bronze casting and a grand finale "iron pour". Twenty artists take part in the performance and oversee the process. All three events will take place north of International Bridge on Vail Road from 5 to 9 p.m. In addition to the three evening performances, the artists will conduct workshops in December for community members wishing to make their own sculptures. Workshop participants will make wax molds and can then watch their art being cast at the performance. AIPP is requesting that the Town Council approve the expenditure of $40,185 for the Iron Casting Workshop and Event. Funding comes from the AIPP budget and does not require any additional appropriation by the Town Council. A detailed budget follows. Documentation Vail Art in Public Places Program Policies and Guidelines Town of Vail Art in Public Places Strategic Plan 2 AIPP Iron Pour Event Workshops: December TBA Iron Pour: January 18-20 Advertising and PR Budget Graphic Design and Printing $ 6,000 News ads Brochure Flyer Vail Daily Advertising $ 525 Five ads Documentation Video and still photography $ 2,000 Media Relations $ TOV/AIPP Press Releases TV8/Plumb Web site updates $ TOV/artists Advertising and PR Budget Total $ 8,525 AIPP Project Costs Twenty tons 3/8" aggregate $ 750 Contract Labor $ 700 Cattle Guards $ TOV Workshop Supplies Plastic to cover ground/ floors $ 150 Project Costs Total $ 1,600 Artist Event Budget $30,000 Iron Pour Event Total Budget $40,125 Board Approved October I, 2007 VAIL ROAD STREETSCAPE CROSSROADS STREETSCAPE k .¢'~> , ., i i1ED :;,:N;.KCi; JN il4.VFR VAIL VILLAGE PLAZA LA BOTTEGA DINING DECK : ~ f c arv wNF,t FR GF •R "AU'-_Il~'N IY3C lK GRtC ONS 3,NPRG.'O:A~-N~ • FR I W G A. ! i' SER N1G. AC:rvfY L ~ IA dS YRG E .of. LESS f0 uL LR t WF.S! E C Of EOFSiRIn R E ' S1E r% OSE ~ i ~' DI N l TALL p!L! 1GE:lNN ~` 1 ! ~ l PL. '.A CONUOS - ~ - PHA. .7~ c L.. ,'^ ~ a Q 'L~`PT _.-. I~ tit SS'; _ t '`'°,~..~! .)off' ~ 'e., ylJU .._ _ _ - , v.n ~~, ~ - _ ~ asT ttrw, N nJ fROSSROADS RF'DRVF/.OPAf ENT' PH,LSE 3 e J RESURT - /~~ t " ~ ON£R'lLLON' ~, _._ - - , ~ -1 r I , ` ^"' ~ ~-- BR/OC£ ROAD ~ } I ~ j ~ ~ LODGE / ~ ^~ s 4 , ~y ~ `'~V~ ~ ~ ^w i ~ ` , .J ~" : ' I ~ i _ ~ , ~ ~.: 'iJ> vi . ~% ~' EAST MEADOW 1 , f t` ~"" DRIVE STREETSCAPE ~ • n kC)4 M IY 10 CCU. DA E 1RAN5'f AN.~. ~ ~ kl [SII..R 1('W LLAflLN t LC .tiKtNwNl fC ' t ` C'N TR^ L..S PR RS'IS l OGSING~ISH 11tE l . ' - •IF R t• fl. RR'i tNS EI ED CONCRE1c.;NR ~ 3 ~~ f LK I`d I. E 1 to • Kk [. K N }2 JN V Y=MG4G ~t - \ - • L Nti nU _, l "Af f. f Nn!X:f miNf3 ~ \ •ufcR cE RNOSC. rr:t. PRG.aE elx(fe w.uf siREEt Y % \ ,`. ~/ ,. { . t VcIII MepCIOW Drive STREETSCAPE IMPROVEMENTS "c~~A4B R~4D Q ___ - ~1`-I ~~ ~ V I t 0 PARKING GARAGE TY'~'S"fy }. - - .. ~-,,. VILLAGE ER AUSTRIA \ HA1:S +~~ ~~ = G -~R-sl+* o x a. ... .. _ 1 ~~.~,s 11_ .ct . SlT7.AlARX t tit LDnr,E STREETSCAPE AT VILLAGE CENTER •. SNOW,ifLiF~ CONCRE?F PAV cR oRrvE LANE • UI'(..RAtl ~LAN~3CAlE iO OJT -- 3 RCYI LUGC • UGH- G ENHANCEnIFN't INTERSECTION •ihCw Ik' f6 LLNLREY UNI{YAViR JP':vf Lh f • COn. t N LRC S3R(YAQf PLAU +OY SP__ At f`Te413 ARfA WILLOW BRIDGE ROA~C~~{IQ 1L7', • CON F(.it IU ? VLL:AGE. iN(FGRAIF w••Il vII.AGE 51 KktI3GYF SNGW K~: AEU CONCRf.LE. C:wf I•nVER • US'~VF. (A`~E iG M(fRN,1~ONM BFPGF • ;C;I~IM:~ ANN 1.tN(•,St:A?f nk ~~~.~ ~' ... The Society for the Preservation of Humanity www.sph-artfunctions.org step-by-step guidelines of the lost wax process f~, ~~; p. .. ~}t. ~" A. It . - 3 ~~t~t.""Fi e .__.:.~,R41`': 3. Wax. copy ready for next stage, which is called spur- ing. This provides a means for bronze to flow success- fully through the final mold. 4. Red wax sprues are attached to the wax forming gates and vents. The paper cup will be the space and reservoir where bronze enters the mold after de-waxing or burnout. 7. The metal is chased using grinders and chisels to remove the sprue system leaving a bronze copy of the wax sculpture. 5. Nine coats of ceramic shell mold surrounding the wax sculpture, sprues and cup ready to burnout in a kiln. ~~~ ~ _ . b. Molten bronze is poured into the now empty ceramic shell mold leaving a bronze version of the original and sprues. ,~ c ~' ~~4. 2. Two part plaster mold used to manufacture multiples with melted wax. 1. Wax original formed using victory brown micro crystalline wax. 8. Chemical patina is applied to oxidize the surface of the bronze for color. Ferric nitrate for brown and ammonia with cupric nitrate for blue/green. - T~ium~~ 'W~nterfest A Celebration of Environmental Artistic Vision Created by Triumph Development with Town of Vail Art in Public Places Mission Triumph Winterfest will be an annual event celebrating the elements of Vail's winter Environment as envisioned by artists and architects using ice, snow, illumination, and wind components individually or collectively in combination with other appropriate materials in site specific areas. Plan Triumph Winterfest is a five year program beginning with an introduction of Triumph's mission and commitment to the community. The final year of the program coincides with Vail's 50`h anniversary in 2012. The advent of the Triumph Winterfest serves as a profound reflection of Vail's New Dawn in this extra-ordinary contribution of visionary Public Art integrated into the fabric of the community. The Triumph 'Winterfest Events Event One January 2008 Focus: An exhibit to introduce the Triumph Winterfest's mission to the conununity at large. It is an interactive exhibit to create curiosity-and raise awareness, interest and support for future amiual Triumph Events and exhibitions. Artist: Lawrence Argent Locations: Gore Creels Promenade, by the fre pit. If electricity is available for lighting, disperse sculptures amongst trees allowing for photos to be. taken of people ~~~ith ice from the pedestrian bride. Concept: ,A configuration of elements cast or carved of ice with an envirotunental theme or focus. The ice ~~~ill be illuminated ~~~ith L1JD's. The. art should attract attention by day and by night. Impact: Exhibit would be a natural gathering place, high traffic axea. Printed materials will emphasize the environmental theme of the artwork and publicize the use of LED's which shine brighter and last longer. in cold temperatures. LED's can be programmed to change color tastefully and subtly. This will not be a light exi:ravaganza. Plum TV's morning program could be encouraged to broadcast from the area. Plum TV may utilize the nearby fire pit for interviewing guests. The event would appeal to all ages and be interactive and integrated. Community: Encourage visits to site via television interviews, public art walking tours, brochures at gallery exhibition events and newspaper announcements. . Funding: AIPP will conduct a campaign to widen acid increase sponsorship for future annual events, underwriters and private contributors. Event Kickoff: Sculpture Lighting Ice Carving Press Releases Media Interviews with Artists Event Two 2009 Focus: An event that highlights a Colorado artist or architect. Locations: One or more of the following: Children's Fountain, Slifer Plaza, Gore Creek Promenade by the fire pit, Willow Parlc, Eaton Plaza, Seibert Circle, Sundial Plaza, or - other Lionshead locations. Concept: An artist/architect will be selected for his/her ability to use the winter elements, within a set budget, in a presentation that will delight and entertain. The art should attract attention by day and. by night. Impact:. Exhibit would be a natural gathering place, high traffic area. Plum TV's morning program production could easily broadcast from the area. The event would appeal to all ages and be interactive and integrated. Community: Collaborate with galleries to create a "Picture This" concept, listing all public and private sites where people should have their pictures taken. Examples: 10`x' Mountain Division Memorial, Einstein and Triumph Winterfest. Funding: Campaign to widen and increase sponsorship for future annual events, underwriters and private contributors. 2 Event Kickoff: To be determined based on artwork, sponsors and location. Ideas to be considered: Ice Maze with graphics and illumination for night time interest Igloos with graphics and illumination Ice Tables and Chairs with illumination for night time interest Ice Arches with illumination for night time interest Wind Chimes Wind Soclcs Illuminated Streetscape Graphics projected onto buildings or snow Event Three -Five 20010-2012 Focus: An event that highlights a national artist. Location: TBD Ideas to be Considered: As listed above. Funding: Fundraising campaign continues . Doe Browning AIPP Board member Triumph Winterfest Budget Year One Event Dates: January 8 -March 30, 2008' Art and Design Budget Artist design fee $ 2,000 Ice sculptor, 15 blades of grass 20,000 LED lighting rental, 12 fixtures 9,449 Additional electrical equiptment/cables/enclosure ~ 1,000 Contigincy 2,000 Totaf for Art $ 34,449 Additional Project Expenses Graphic Design and Printing $ 3,000 2000 bi-fold brochures, print ads Vail Dail, five newspaper adverts 525 Night time photography, 2 hours 250 Security 2,500 55 hours @$45 per hour Media Relations & Press Releases AIPP/TOV Web site updates AIPP/TOV Total Project Expenses $ 6,275 Total Project Budget $40,724 '`event end date is approximate based on outside temperatures. AflOENT STUDIOS l/iW fbG~iKmR~{,. S'w~~ . ~ klort K uwii -. ~iLsl~yys~s,,x~3 ~ai'S~.zaa sculptural Elements lit underneath with LED fixtures from Color Kinetics These are to be shaped and formed by Scott Rella of Fear No Ice. cross sectional view of form w14 VJyandot St. oeavet,ca wen 3034338263 VOICE 303 561 0585 FN( City of Vail ICE SCULPTURE PROPOSAL Rendering and Dimensions 0 November 13, 2007 ©IAWRENLE ARGENT LN) LAWRENCE ARGENT 3014 Wyandot St. Denver, CO 80211 303 433 B2fi3 VOICE 303 561 0585 EAX www.lawrenceargent.com E~CaF.:rilt(Y1:i 1979 -1983 B. A. (Sculpture) Royal Melbourne Institute of Technology, Australia. 1984 -1986 M.F.A. Rinehart School of Sculpture, Maryland Institute, College of Art, Baltimore, Maryland. 2006 Federal Reserve Bank, Kansas City, M0. Artist selected for Plaza Entrance Public Art Commission 2006 Artist selected for Plaza Entrance and Design for Solaris Project, Vail, CO 2005, Selected Artist for Public Art Work in Old Town Aurora, City of Aurora, CO "Ghost Trolley" (Completion -Spring 2007) 2003 Selected Artist for Design Consultant, and Public Art Work in Oak St. Plaza ,Old Town, Fort Collins, CO "Confluence" (Completed August 18'h 2006) 2002 City of Denver Convention Center Public Art Project, Denver, CO "I see what you mean" (Completed June 2005) 2007 Selected Artist for Gateway Monumentation Project. Four sites for the City of Englewood, CO Completion date of first site- May 2003. "Virere", painted aluminum and landscaping. 2000 DURA/ Post Properties. "Pillow Talk''. .20'h and Pennsylvania St. Denver, CO 1999 Public Art Project, "Whispers" Interactive Outdoor Sculpture Installation. University of Denver. CO 1991 Private Commission, Santa Barbara. CA 1979 Design Commission; West Gate Bridge Authority and Amalgamated Metal Workers Union, Melbourne, Australia 20 x 14 x 14 ft. painted steel. 1999 "Lawrence Argent", William Havu Gallery, Denver. CO. 1998 "Waiting" - A Video projection installation, Mariani Gallery. The University of Northern Colorado. Greely. CO. 1996 "Lawrence Argent, Paintings- New Work." Ruth Bachofner Gallery, Santa Monica, CA. 1995 "Lawrence Argent, ..of silent touching". Installation and New.Work at The Boulder Museum of Contemporary Art, Boulder, CO. (Catalog) "Lawrence Argent". Mary Mackey Gallery. Denver. CO. 1994 "Lawrence Argent -Connections " University of Denver Art Gallery, University of Denver, CO. "Lawrence Argent -Recent Work". Ruth Bachofner Gallery, Santa Monica, CA. 1992/93 "Lawrence Argent", Ruth Bachofner Gallery, Santa Monica, CA. 1991 "Making Thoughts" -Lawrence Argent, Frances Puccinelli Gallery, Carpinteria, CA. 1989 "Lawrence Argent, Recent Works", Allan Hancock Community College, Santa Maria, CA. "Catch Me If You Can", A Mechanical Device. Installation at the College of Creative Studies Gallery, University of California, Santa Barbara, CA. 1988 Installation "Ein Licht", School 33 Art Center, Baltimore, MD. ~f??~E°t7i SE+)eCt2G ~'kY~Ii.l~a `'}it[i:J~t3C}r;~ 2006 "Sculpture in Clay" October 6, 2006 -March 30, 2007, The Museum of Outdoor Arts, Englewood,CO 2006 "Extended Remix" September 15,.2006 -January 7, 2007, Museum of Contemporary Art, Denver, CO 2006 "Decades of Influence" Colorado 1986 -2006, June 16-August 27, 2006 Museum of Contemporary Art, Denver, CO 2005 "Three Dimensions"" William Havu Gallery, Denver. CO. (January) 2005 "Partners -couples making art" ,Republic Plaza, Denver; CO. 2004 "Lawrence Argent, Randy Brown -Photographs" William Havu Gallery, Denver, CO 2004 "In House", Faculty Exhibit, Vicki Myren gallery, University of Denver, Denver, CO 2002 North American Sculpture Exhibition 2002, Foothills Art Center, Golden, CO (Catalog) 2001 "Argent, Kriegsman, Joffe." William Havu Gallery, Denver. CO. 2000 "Colorado Biennial", The Museum of Contemporary Art, Denver. Denver, CO (Catalog) The West: New Ways /Old Visions. Center for the Visual. Arts, The Metropolitan State College of DE~nver, CO Faculty Show. School of Art and Art History Gallery, University of Denver. Denver, CO. (Catalog) 1999 2151 Annual. Salina Art Center, Salina. KS "Chairs, Chairs, Chairs" .Center for the Visual Arts, The Metropolitan State College of Denver, CO ' Colorado Council on the Arts Artist fellowship Exhibition. Sangre de Cristo Arts and Conference Center, Pueblo, CO Western Colorado Center for the Arts, Grand Junction, CO Cortez Center for the Arts, Cortez, CO 1998 "CHAIR - 2", Santa Barbara Contemporary Arts Forum, Santa Barbara, CA 1997 The Sixth International Shoebox Sculpture Exhibition, Invitational, University of Hawaii Art Gallery, Honolulu, Hawaii.(Catalog) 1996 "Casts of Character: The Factory and Beyond". John Michael Kohler Arts Center. Sheboygan, WI. "Let The Games Begin". Riverside Art Museum. Riverside, CA. "Insight on Sight: Five Installations. "Voyage" , Installation. The Arvada Center for the Arts. Arvada, CO. "Colorado, Wyoming Biennial".One West Art Center, Fort Collins, CO. 1994 The Fifth International Shoebox Sculpture Exhibition, Invitational, University of Hawaii Art Gallery, Honolulu, Hawaii.(Catalog) 26th Biennial Exhibition, Works on or of Paper, University Gallery, University of Delaware, Newark, DE. "National Showcase Exhibition" The Alternative Museum, New York, NY 1992 "Contemporary Uses of Wax and Encaustic", Palo Alto Cultural Center, Palo Alto, CA. 2006 Creative Arts Materials Fund. The University of Denver, Denver, CO 2005 Creative Arts Materials Fund. The University of Denver, Denver, CO Rosenberry Fund, University of Denver, Denver, CO 2004 Creative Arts Materials Fund. The University of Denver, Denver, CO 2 Faculty Research Fund. The University of Denver, Denver, CO 2002 The Distinguished Scholar Award, The University of Denver, Denver, CO 2002 North American Sculpture Exhibition, Best of Show Award. Foothills Art Center, Golden, CO 2000 Faculty Research Grant, University of Denver, Denver, CO 1999 Artist Fellowship in the Visual Arts, Colorado Council do the Arts Rosenberry Fund, University of Denver, Denver, CO 1997 faculty Research Grant, University of Denver, Denver, CO 1996 New Forms Project Grant, Regional Initiative, Helena Presents New Forms: co administered by Helena Presents and the Colorado Dance Festival with Funding from the National Endowment for the Arts'P.resenting and Commissioning Program, The Rockefeller Foundation, and The Andy Warhol Foundation for the Visual Arts. 1995 Faculty Research Grant, University of Denver, Denver, CO 1994 John Michael Kohler Foundation, Arts/ Industry Residency. 1993 Faculty Research Grant, University of Denver. Denver, CO 1990 Pollock-Krasner Foundation Grant. 1986 The Amalie Rothschild Rinehart School of Sculpture Award. 1986 Core Fellowship, Museum of Fine Arts, Houston, Texas. 1984 Sculptors Association of Victoria; Australia. The Andor Mezzaros First Prize. rde':=~:~i~>a 1994 Residency at the John Michael Kohler Arts Center, Arts /Industry Program (August -Oct. 1994 1986,1987 Artist in Residence, Glassell School of Art, Fine Arts Museum of Houston, Houston, Texas. 1986 Artist in Residence, Georgia Fine Arts Academy, Calhoun, Georgia. 2006 -present Professor, Head of Sculpture, School of Art and Art History, University of Denver, Denver, CO 1997 - 2006 Associate Professor, Head of Sculpture, School of Art and Art History, University of Denver, Denver, CO 1993 - 97 Assistant Professor, Head of Sculpture, School of Art and Art History, University of Denver, Denver, CO .1993 Associate Faculty, Allan Hancock College, Santa Maria, CA 1988 - 91 Visiting Lecturer. (Sculpture) Art Studio Department, University of California, Santa Barbara, CA '- 1986, 1987 Instructor at the Glassell School of Art, Fine Arts Museum of Houston. TX 2006 Invited Guest Speaker -Sculpture Symposium. Monash University Art and Design, Melbourne, Australia 30 September 2006. "Crossing Borders' - A collaboration of means utilizing 3D technology. 2006 Visiting Artist Lecture Series, University of Colorado, Boulder, Colorado 2D05 Visiting Artist, Lecture. Arapahoe Community College, Littleton, Colorado Speaker for Vall Valley Symposium and Art in Public Places, Vail, Colorado 2005 Lecture for the Friends of Painting and Sculpture, Denver Art Museum, Denver, Colorado 3 2005 Denver Press Club, Public presentation, Denver, Colorado 2004 Keynote Speaker for Art Libraries Society of North America, Mountain West Chapter 2004 Annual Conference 2002 The Faculty of Art and Design, Monash University, Melbourne, Australia (October) 2000 National Endowment for the Arts. Invited Creativity and Organizational Panelist for Visual Arts Grants 1999 Illinois Arts Council, Juror for selecting Artist Fellowships 1998 University of Colorado, Graduate School of Architecture. Denver, Colorado 1997 Highlands University, New Mexico 1996 Alliance for Contemporary Art, Salon Series, Denver Art Museum, Denver, Colorado 1995 Metro State College, Denver, Colorado 1994 University of Wisconsin, Milwaukee, Wisconsin 1994 University of Denver 1993 University of Florida, Gainesville, Florida University of Denver, Denver, Colorado 1992 Bennington College, Bennington, Vermont University of Utah, Salt Lake City, Utah 1992 Denison University ,Granville, Ohio 1991 Contemporary Arts Forum, Santa Barbara, California 1990 Royal Melbourne Institute of Technology, Melbourne ,Australia University of Maryland, College Park, fvlaryland 1989 University of California, Santa Barbara. Santa Barbara, California ~.a~C:~'~'It ~YtS~Ji3C.at9(:3"~ ic"a U'u€i9c,~'; kit*_}~€~ :w tc .3r.,td~~Z.f Art in America February 2007, "The Hills Are Alive", Stephanie Cash. The Denver Post. July 10 2006 "Ghost of Aurora may star in Colfax revival".Jeremy Meyer, Denver, Colorado University Magazine Spring 2006 Cover and Profile Article, " A tale of an Artist and a Blue Bear" University of Denver, CO Australian Art Review Nov. 2005 - Jan.2006 Portrait of the artist as blue bear, Rachel Bernstone, Sydney, Australia Qantas InFlight Magazine Oct. 2005, Rachel Bernstone, Sydney, Australia Sculpture International Sculpture Center, September 2005, William Gaddis, Washington D.C. Composites Technology, August 2005. "Composite Sculpture Bears a Second Look", Sara Black Exposure Magazine, July 2005 "I see what you mean -Local Artist gives Denver a new mascot."(feature article) Corwin Christie, Denver, CO Cyberware 3D Development (Newsletter,) July 2005 "I see what you mean". Big Blue Bear Project (Newsletter,) Monterey, CA July 2005 The Denver Post. July 21, 2005 "The artist beneath it all". (feature article) Kyle MacMillan, Denver, Colorado The Denver Post. July 10, 2005 "What's Bruin in Denver". Kyle MacMillan, Denver, Colorado Rocky Mountain-News, June 22, 2005 "Bear's in the air at Convention Center", Mary Voelz Candler, Denver, Colorado Channel 9 News, June Z1, 2005 Live Interview AM Show. Denver, Colorado 4 MEMORANDUM To: Town Council From.: Stan Zemler, Matt Mire, Sally Lorton, Judy Camp Subject: Construction Use Tax Date: November 15, 2007 The construction use tax ballot question approved by Vail voters on November 6"' gives Town Council the authority to implement a 4% tax on building and construction materials consumed or used in the Town of Vail. Proceeds of the tax are to be used exclusively for capital acquisitions and capital projects in the town. Implementation of the tax is accomplished by two readings of an ordinance which sets the policy and administrative details relating to the tax. Some provisions of the ordinance are defined by the ballot question or prescribed by Colorado state statute. Other provisions are established by Council. We have prepared the attached draft ordinance for your discussion on Tuesday evening. BACKGROUND INFORMATION We have attached the following documents which highlight some -of the discussion and materials considered in putting the construction use tax question on the ballot: ^ Excerpts from Council Highlights for July 17, August 7, and August 21, 2007 ^ Staff memorandum dated August 2, 2007 ^ Staff memorandum dated August 16, 2007 ^ Resolution No. 19, Series of 2007 During the past three budget cycles, a 15-year capital plan has been included in addition to the five-year projections for the Capital Projects and Real Estate Transfer Tax (RETT) Funds. These planning processes are designed: to maintain the town's valuable existing facilities; and to identify projects needed to keep pace with private development and other community needs. Existing sources .of revenue including: sales tax; Real Estate Transfer Tax (RETT); federal transportation grants; rental income; investment income, and tax increment financing (TIF) were considered in the capital plans. Each year we have concluded these existing sources of revenue are not sufficient to support the town's critical capital needs beyond 2008. The Vail 20/20 Strategic Plan, which included input from the community and the Vail Economic Advisory Council, also identified a need for funding capital improvements. The vision for Vail`s economy in 2020 includes, "Through prudent cost management and balancing of diversified revenue sources, the municipality has sustainable funding for its capital and operational needs. One goal of the plan is to identify and implement additional revenue sources to support Vail's capital needs. The 2007 Community Survey also included the following capital-related items in the top 10 issues facing the town: workforce housing; construction and/or maintenance of public infrastructure; improving recreational facilities; and improving fire response time (e.g., through a third fire station). A use tax on construction and building materials was discussed as early as 1998. In 2002, use tax was again discussed as a potential ballot issue, but a property tax question was chosen instead. The proposed 4 mil property tax increase for the purposes of "increasing fire protection and suppression resources and the construction, acquisition, or maintenance of capital projects" was defeated (48% for / 52°~~ against). On November 6, 2007, voters approved the proposed use tax on building and construction materials to be used "exclusively for capital acquisitions and capital projects in the Town of Vail" by a vote of 479 (52%) to 466 (48%). This use tax addresses, at least in part, the ever-widening gap for funding of capital projects. The Capital Project Fund projection presented to Council on August 7th included a $25.8 million shortfall over five years after giving consideration to existing revenue sources, including tax increment financing (TIF). Some of the larger projects included in the five year projection which resulted in the shortfall are: neighborhood road and bridge reconstruction; capital street maintenance; parking structure capital maintenance and equipment; third fire station and other fire station improvements. Revenue collected from the construction use tax will be deposited into the town's Capital Projects Fund, whose use is restricted to capital acquisitions, capital improvements, capital maintenance and related debt service. Specific capital projects to be completed using the revenue from the new use tax will be determined by the Town Council during annual budget deliberations. Staff recommends amid-year review of use tax collections before committing to any projects in 2008. PROVISIONS PRESCRIBED BY STATE LAW The following are key provisions required by state law and included in the draft ordinance: ^ No sales tax of any city or town iri Colorado shall apply to the sale of tangible personal property if the transaction was previously subjected to a lawfully imposed sales or use tax by another city or town in Colorado: This means anyone who pays the construction use tax in Vail cannot be taxed for the same material in another city or town. Generally the purchaser of the material must show his supplier a building permit evidencing payment of the use tax. ^ The use tax may not apply to building materials required in the performance of a construction contract bid, let, or entered into at any time prior to the -2- effective date of the use tax ordinance. For example, if materials are delivered and used in a project after January 1, 2009, but the construction contract for that project was entered into before January 1, 2008, the materials cannot be taxed. ^ The use tax does not apply to use or consumption of construction and building materials by the federal government, the State or its institutions or political subdivisions in their governmental capacities, or by religious or charitable corporations in the conduct of their regular religious or charitable functions ACTION REQUESTED OF THE COUNCIL Staff is requesting specific direction on the following items: Method of Collection The simplest method of collecting a construction use tax is to collect the entire amount when the project's building permit is issued. This is the method previously identified to Town Council and the community. An alternative method used by some municipalities is to require monthly filing of use tax returns for the actual cost of materials consumed in town. This method requires more administration and it is more costly for both the taxpayer and the town. Although this method may appear to have the advantage of being able to tax construction materials consumed after January 1 for projects already in process, this benefit is limited. State statute provides an .exemption for .building and construction materials "required or made necessary in the performance of any construction contract bid, let, or entered into at any time prior to the effective date" of the use tax. /s the provision to collect the full amount of the use tax when the project's building permit is issued acceptable to Council? Cost of Building and Construction Materials The use tax rate of four percent (4%) is applied to the. cost of building and construction materials used or consumed in Vail. The draft ordinance deems the cost of building and construction materials to be 50% of the construction valuation shown on a project's building permit. The construction valuation is provided by the permit applicant with review and final determination by the Chief Building Official. For projects involving construction of new square footage, the Chief Building Official relies on industry standards to assure reasonability of the applicant's valuation. The Chief Building Official has the authority to audit valuations provided by the applicant. The draft ordinance contains a provision for either the town to audit or the taxpayer to request an audit to re-compute the use tax based on actual costs. -3- Most examples we have looked at value construction materials at 50% of the construction valuation.. However, the Town of Nunn uses 52% and Greenwood Village uses 60% as the materials component of the valuation. Is it acceptable fo Council to value building and construction materials at 50% of fhe construction valuation as shown on the building permit? If not, what other percentage is acceptable? Exemption for Deed-Restricted Ernployee Housing Employee housing has been identified as a priority issue for the Town of Vail. Legislation was recently enacted requiring developers to provide housing for 30% of jobs created by their developments. To further encourage construction of new employee housing units, the previous council discussed an exemption for use tax on materials used to construct work force housing. The recently enacted housing requirements are codified in the town's Zoning Regulations, Title 12, Chapter 23 -Commercial Linkage and Chapter 24 -- Inclusionary Zoning. The draft ordinance includes the following exemption: "Construction and building materials used or consumed in the construction of employee housing units, as defined by Title 12, that are subject to a deed restriction approved by the Town". Does Council choose to exempt employee housing from the construction use tax? !f so, is the wording contained in the draft ordinance acceptable? Exemption for Homeowner Proiec~ts Council has been asked to consider an exemption for smaller, residential remodels and improvements as an incentive for homeowners to maintain and/or upgrade their property. Council could offer an exemption for projects below a specified construction valuation and/or materials cost. A more equitable alternative may be to exempt a specified dollar amount on all projects regardless of size: Exemptions for small projects were not common in the ordinances we reviewed, although the City of Greenwood Village provides an exemption for the first $3,500 of the total purchase price of building materials in any project. Does Council want to provide an exemption for projects below a specified dollar amount OR for some amount of construction materials on all projects? If so, what amount of valuation or materials cost should be exempt? Exemption for Projects with Appre~ved Development Applications The previous Council discussed providing an exemption to developers whose development applications were appiroved prior to January 1, 2008, even if the building permit application was not submitted until after that date. In many cases, the developer has relied on cost estimates and construction bids that did not contemplate a use tax. However, they are not far enough along in the -4- process to submit a complete building permit application. If Council chooses to include this exemption, staff recommends the exemption apply only to the current approved plan and not to any resubmissions. We are aware of the following developments whose applications are currently approved but have not yet submitted for a building permit: Fogata, Lions Square Lodge North, Solaris, and The Timberline Lodge. Does Council want to exempt projects with deve/opmenf applications approved prior to January 1, 2008? -5- USE TAX ON BUILDING A,ND CONSTRUCTION MATERIALS BACKGROUND INFORMATION Town Council Highlights July 17, 2008 Work Session --Revenue Analysis Finance Director Judy Camp explained the start of every budget cycle begins with a discussion of major revenues. Council examines projected year-to-date, five-year averages and recent trends which are used to calculate future revenues. In addition, staff explored several options to help offset increasing capital and operating expenses related to redevelopment. These included a construction impact fee for projects valued over $10 million, a construction use tax (on building materials), and revisions to existing construction permit fees. Zemler said there were reports of disturbing financial trends on the Front Range in regard to municipal sales tax revenue. In response to discussion surrounding a potential construction use tax, Town Attorney Matt Mire explained that if Council chose to have a ballot initiative in November, an ordinance would need to be passed in August. Logan encouraged educating the public about the town's capital needs. Council then directed staff to prepare an ordinance for consideration of a use tax ballot initiative for the November election. Camp said the capital plan would be brought before Council on August 7. Council also directed staff to initiate a rational nexus to determine construction mitigation costs. For more information, contact Kathleen Halloran at 479-2116. Town Council Highlights August 7, 2008 Work Session --Long-term Capital Pian Staff presented the five and fifteen-year capital plan to Council. At the end of 2012, the town will need. a total of $69.2 million of funding for capital projects. Some of these projects will be ot'fset by future funding sources, such as developer agreements, federal grants and tax increment financing (TIF). The total projected offset is $43.4 million, leaving a remainder of $25.8 million of unfunded capital projects by the year 2012. Kent Logan asked about the timing of bonding against future TIF revenues and Judy Camp responded that the town could sell bonds as soon as 2008, however there must be appropriate capital projects to use the funding. These projects may not be ready far construction in 2008, but staff agreed to start the preliminary work needed to begin the bonding process. Zemler recommended) waiting until the fall of 2007 to determine what projects should be covered by the LionsHead TIF, pending the outcome of the' LionsHead Parking Structure redevelopment negotiations. Staff will bring back a balanced capital budget for 2008 at the September 4 Council meeting, but the additional funding needed of $25.5 million will remain part of the five-year outlook until new sources of funding are implemented. Newbury encouraged budgeting for a workforce housing development at the Chamonix site. Logan clarified the town had $13.7 million ire debt service on outstanding bonds. Hitt: inquired about potential locations for a pocket park in LionsHead. For more information, contact Kathleen Halloran at 479-2116. -6- Town Council Highlights August 7, 2008 Evening Meeting --Discussion of Use Tax on Construction Materials Finance Director- Judy Camp reported a construction use tax has been identified as a potential new revenue source to help fund the town's ongoing capital improvements needs, such as construction of a West Vail fire station, neighborhood street improvements, repairs to public buildings and acquisition of workforce housing. During a budget discussion with the Town Council last month, Camp presented the construction use tax as one of several revenue options. In directing the town attorney to prepare a resolution setting a construction use tax for the November election, Council members noted their interest in inviting a community dialogue about the pros and cons of such a tax. The deadline for setting a potential tax question is Aug. 21. Currently no tax is collected on building and construction material for projects of any size within Vail. Had a four percent tax been in place, the town would have generated an estimated $2 million in 2005; $4 million in 2006; and $7 million in 2007, according to the town's calculations. A use tax could be collected at the time a building permit is issued based upon 50 percent of the project's valuation, according to Camp. A construction use tax is a common source of revenue to Colorado municipalities and is collected locally in Eagle and Gypsum following voter approval in 1998 and 1995, respectively. Moffet said, "I like the idea of exempting work force housing." He then made a motion to move forward with a resolution placing the construction use tax on the November ballot, with Hitt seconding. Gordon questioned pushing the issue and encouraged more analysis. "I think we should approach this a little more cautiously than we are." Logan emphasized there is a significant shortfall in the town's capital project budget and a more comprehensive approach should be considered. During public comment, Michael Cacioppo asked if exempting affordable housing projects from the tax would be unconstitutional. Estaquio Cortina asked for the initiative to be fair. Representing Vail Resorts Development Company, Keith Fernandez asked if this action would be double taxation. Representing the Vail Village Homeowners Association, Jim Lamont noted an interest in exhausting all forms of Tax Increment Financing methods before bringing a tax question to voters. Representing Vail Resorts, Bob Stozick asked for more thought to be put into the ballot language. "Costs for building on the Front Range are different than they are in the mountains...We need to better analyze the ratios being used." Representing Peter Knobel, Dominic Mauriello encouraged using a Tax Increment Financing (TIF) District to generate improvements in the Solaris area. The motion passed 4-3 with Gordon, Newbury and Logan opposed. The resolution will be considered at Council's Aug. 21 meeting. For details, contact Judy Camp at 479-2119. Town Council Highlights August 21, 2007 Evening Meeting --Resolution No. 19, Series of 2007, a resolution submitting to the registered electors of the Town of Vail, Colorado, at a regular municipal election held on November 6, 2007, a ballot issue concerning the adoption of a use tax to finance capital projects and acquisitions. Moffet moved to adopt the resolution and add the inclusion of a rebate or exemption on materials used to construct workforce housing with Hitt seconding. Former Vail Mayor Bob Armour spoke in support of the construction use tax. The town needs a new revenue source and new construction must help carry the load. Representing Vail Resorts, Bob Stozek asked for more time to research the issue. Speaking as a resident, Bill Jensen noted the -7- community is benefiting from an array of public benefits associated with new development and the Real Estate Transfer Tax (RETI") has been viewed historically as a substitute for taxes on construction. Jensen suggested asking voters instead to expand the use of RETT rather than create a new tax. Representing the towns Economic Advisory Council, Rob Levine spoke in support of the tax. Diversity of revenue streams is something I think we are all sensitive to. At the very least, present it to the voters, and let the voters decide. Town Attorney Matt Mire added a letter to the record from the Vail Board of Realtors. The board objected to the use tax. Brian Gillette said the tax would only increase the price of property in Vail and make housing less affordable. Logan stated, .I think it (construction use tax) could be part of the solution, but not the whole solution...l.m glad we have raised the awareness that we have a significant shortfall in our capital budget over the next several years.) don.t think the timing could be worse for this (in regard to a national economic downturn)...We need to think of this as part of a package.. Gordon said, .I think this is a great time to take a chance and let the war of ideas come out. I am in favor of putting this construction use tax on the ballot.. Moffet stressed the only way to increase the amount of employee housing in the town is through the use of the Iaw..This issue is not a complex tax, go to Eagle, go to Gypsum.. (Both communities utilize a construction use tax.) The motion passed 4-2, with Logan and Foley opposed. For information, contact Judy Camp at 479-2119. -8- r ~~IE~IORANllUYI To: Vail Town Council From: Stan Zemler, iVlatt Nlire, Judy Camp Date: August 16, 2007 Subject: Use Tax on Building and Construction Materials On Tuesday evening, you will be asked to consider Resolution No. 19, Series 2007, a resolution submitting t~ the registered electors of the Town of Vail, Colorado, at a regular municipal election held on November 6, 2007, a ballot issue conccl-ning the adoption of a use tax to tinance capital projects and acquisitions; and providing other details relating thereto. Your approval of this resolution is the first step in placing a constriction use tax on the ballot. If a majority of the votes cast in the November election are in favor of the use tax, the Town Council will be authorized to adopt an ordinance levying the tax and providing for the administration and collection of the tax. The Taxpayers Bil} of Rights (TABOR) requires voter approval for any new tax including the proposed construction use tax. The following information is provided for your consideration. BACKCROUN® AND RATIONALE During the past three budget cycles, a 1.5-year capital plan has been included in addition to the; tive-year projections for the Capital Projects and Real Estate Transfer Tax (RE;TTj Funds. These planning processes are designed: to maintain the town's valuable existing facilities; and to identify projects needed to keep pace with private development and other community needs. Each year we have concluded existing sources of revenue are not sufficient to support the town's critical capital needs through 2008. The Vail 20/20 Strategic Plan, which included input on this topic from the community and the Vail Economic Advisory Council, also supports this conclusion. The vision tin- Vail's economy in 2020 includes, "Through prudent cost management and balancing of diversified reve~zere sources, the municipality has sustainable.fundin~.for its capital and operational needs. One goal of the plan is to identify and inzplenrent additional reve~tue sources to srrppo~7 Vail's capital needs. The 2007 Community Survey also included the following capital-related items in the top l0 issues facing the town: workforce housing; construction and. or maintenance of public inti-astructure; improving recreational facilities; and improving fire response time (e.g. through a third fire station). The primary sources of revenue for capital projects include: sales tax; real estate transfer tax (RETT); federal transportation grants; rental income; investment income, and tax increment financing (T[F). Two revenue categories, sales tax and RETT, support operations as well as capital projects. RETT is restricted in its use to parks, recreation, open space, and environmental sustainability. TIF is restricted to projects within an established TIF district. The LionsHead TIF district is the only one established at this .. i point; however, consideration was given to other TlF districts in the five and 15-year plans. A rise tax un construction anti building materials was discussed as early as 1998. In 2002, use tax was again discussed as a potential ballot issue, but a property tax yuestion was chosen instead. The proposed =t mil property tax increase for the purposes of "increasing fire protection and suppression resources and the construction, acquisition, or maintenance of capital projects" was narrowly defeated (~8% for / 520./o against). Currently, building and construction materials are exempted from the 4°/n saes tax applied to all other tangible personal property purchased in town or delivered into town. And since the town does not have a construction use tax, no municipal tax is collected on building and construction material purchased and!ur used in Vail for any project with a building permit. A 4"o tax on building materials used in the town would have generated an estimated $2 million in 2005; $4 million in 2006; and $7 million in 2007. In 2008, a 4% use tax has the potential to generate an estimated $4 million. This revenue is lost forever if the ballot issue is delayed to a future year. A use tax would adch-ess, at least in pact, the ever-widening gap for funding of capital projects. The Capital Project Fund projection presented to you on August 7th included a $2>.8 million shortfall over five years after giving consideration to existing revenue sources, including TIE. A use tax un .construction material generating $4 to $5 million annually would essentially close the gap. Bonding against $4 million of annual use tax revenue could provide an estimated $40 million of funding for capital projects. A ,construction use tax would also provide diversification of the .town's revenue as described in the Vail 20/20Vision. For example, sales tax revenue represents an estimated 38°'0 of the town's revenue ti•om existing sources in 2008. Addition of $4.1 million from a construction use tax reduces reliance on sales tax to 35% of total revenue: from all sources. Use tax may also offset a loss of sales tax revenue from construction activity. Building and construction materials are the only major category of tangible persona] property specitically exempted from the Town of Vail's sales tax ordinance. A use tax would he complementary to the sales tax and provide consistent treatment among all categories of tangible personal property purchased or used in Vail. STAFF RECOMMENDATION: Statf recommends approval of Resolution No. 19, placing a construction use tax question on the November ballot and enabling the electorate to cast their vote for or against this source of funding for the town's capita] projects. r CONSTRUCTION USE T:4\ QUESTIONS :AND ANSWERS What is a use tai? Generally, a use tax is levied on the privilege of using or otherwise consuming tangible personal property within a city or county for which no sales or use tax has boon previously paid. It is considered complementary to a sales tax, and is applied regardless of where the property was purchased. For example, if the town levied a use tax on construction material, a contractor purchasing material for his job from an out-ot=state supplier could be assessed a use tax by the Town of Vail. A use tax may be applied generally to all tangible personal property used or consumed within a municipality or its application may be limited to vehicles and/or construction and building materials. The proposed use tax ct~rrently under discussion for the Town of Vail .is limited to construction and building materials. 1-Iow common is a use tax? Over half the incorporated municipalities and counties in Colorado levy a use tax and the concept is well-suppol-ted by legislation and case law in Colorado. Examples of municipalities with use tax on building materials include Broomfield, Denver, Eagle, Glenwood Springs, Grand Junction, Gypsum, Lakewood, Mountain Village, and Steamboat Springs. How is a construction use tat authorized and implemented? Colorado statutes authorize use taxes on construction materials anc} on vehicles used within the municipality or county imposing the tax. Since implementing a construction use tax is a change in tax policy and increases revenue, it must be approved by the town's electorate in a .TABOR election. Administrative details, such as how and when the tax is paid and what specillc exemptions may apply, are defined by ordinance. The follow'lllg table identities key dates for the Town of Vail's proposed construction use tax: 08/07!07 Council discussion of key elements of proposed use tax and review of draft ballot language 08/21'07 Latest date for Council consideration of a resolution to place a construction use tax question on the November ballot 09/21/07 Last day for Pro/Con statements to be tiled with Town Clerk 1010/07 Last day to mail TABOR ballot issue notices l 1/06/07 Election day 1 l/20/07 First reading of use tax implementation ordinance, if approved by voters 12/04/07 Second reading of use tax implementation ordinance, if approved by voters 12! 18107 Council meeting -back-up date for ordinance reading if needed O1/Ol/08 ~ Effective date of tax -3- 1Vhat has been the experience in other communities with use tax ballot issues? In April, 2007, Georgetown's electorate approved an extension of their ~°jo use tax on vehicles to include construction and building materials. The ~°/~ rate is the same as Georgetown's sales tax rate. In 1995, Gypstun passed a ~°,'o use tax on residential construction and building material with 20`.% directed to administration trnd R~°'o directed to roads. The use tax is one percentage point lower than Gypsum's 4°% sales tax. In 1998, Eagle passed a 4% use tax on construction and building materials for capital projects. Eagle's sales tax and use tax are the same rate. Avon's 2002 building materials use tax ballot was defeated. The proposed rate was 4'%, which is the same as Avon's sales tax. Breckenridge's 199 use tax ballot was defeated. The proposed 2.~°o rate was the same; as Breckenridge's sales tax rate. Aspen is considering a use tax ballot for this November's election. it~lust the use tax rate he the same as the sales tax rate? No, use tax rates are sometimes lower than the sales tax rate. 1Vhat is meant by "construction materials?" The Vail Town Code defines construction materials as "Tangible personal .property which, when combined with other tangible personal property, loses its identity to become, an integral and inseparable part of a complete structure or project including public and private improvements. Construction materials include, but are not limited to, such things as asphalt, bricks, builder's hardware, caulking material, cement, concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling equipment, flouring, glass, gravel, insulation, lathe, lead, line, lumber, macadam millwork, mortar, oil, paint, piping, pipe valves, and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh, road base, roofing, sand, sanitary sewer pipe, sheet: metal, .site lighting, steel, stone, stucco, tile, trees, shnibs, and other landscaping materials, wallboard, wall coping, wallpaper, weather stripping, wire netting, and screen, water mains and meters, and wood preserver. The above materials, when used for foi-~ns, or other items which do not remain as an integral or inseparable part of a completed structure or project are not construction ;materials. Construction materials do not include such things as: carpeting, equipment, furniture, removable fixtures, window coverings, or similar items." If the Town already has a sales tax, why do we need a use tax on construction materials? Construction and building materials as defined above are exempt from the town's sales tax as long as the purchaser has obtained a building permit and provides the retailer -~- Sclllllg }11111 t}le Illaterlal the 1)erillit IlLI111beC. Therefore, construction lllatei'lal IS clll'1'liltly a Category Of tallglble pel'sOllal propel"ty llpOll whll;}1 n0 tar is collected Ill the Towtl C)t Vall. As discussed below, building materials picked up at a supplier in another city or town are currently subject to that town's sales tax. if Vail had a use tax collected at the time the building permit is issued, the tax dollars related to the purchase would benctit Vail rather than the other locale. Also, a use tax on construction material may he counter-cyclical to the town's general sales tax, i.e., if sales tax is negatively impacted by construction, the use tax is in place to onset it during the construction period. How is a construction use tar collected? The simplest way to collect a construction use tax is to collect the entire amount at the tinge the building permit is issued. How is the amount of use tax determined'? The use tax amount is determined by multiplying the use tax rate by the cost of the building material. When collected at the tinge the building pernlit is issued, the estimated cost of building and construction materials is generally calculated by multiplying by fifty percent the total valuation of the construction project as entered on the building permit by the town building inspector. ~'r'hat if the builder/developer thinks the estimated value is too high o>r• the town thinks the estimated value is too low? Use tax ordinances generally provide for an audit of the taxable value by either party within a reasonable period after construction is complete. Interest on any refilnd or cieticiency is generally computed from the day the certificate of occupancy is issued. What if a builder developer purchases material for use in Vail from a supplier in a town that has a sales tax? Will he/she be subject to double taxation? No. If the materials are delivered to Vail, the seller does not collect sales tax for the town or city where he~'she is located, and only Vail's proposed use tax would apply. If the seller is located in Eagle County, he is required tv collect Eagle County's 1.~% sales tax. If he is located in Colorado, he is required to collect the state's 2.9'ro sales tax. If the purchaser picks up the material from a seller located in a town or city with a sales tax, the materials are generally exempt from the local sales tax if the ~urclurser presents to the seller a building permit or other dociin~iei7tatio~z ucceptable to the local gciver~iment til~hes•e the piu~chase takes place, showing that a use ti~x has beejz paid. This is required by state statute for both statutory and home rule municipalities. (Colorado Revised Statutes, Title; 29) Colorado state statute also prohibits local jurisdictions from collecting a use tax on materials for w}lich a legally imposed tax has already been collected by another city or -s- town. If the sales tax collected was less than the use tax required, only the incremental. amount of the use tax muy be collected. Will the proposed tax add to the builder/developer's project cost? If so, how much'? In most cases, a use tax vvould result in additional cult to the purchaser of building materials for use in Vail. The additional amount depends upon the rate of the tax and how the builder is cun-ently taking delivery on materials. For example, if the hui!der is currently picking up materials in Ave~n, a ~°'o sales tax is paid to the Town of Avon. If Vail had a 4°% use tax on construction materials, he/she would still pay 4°%, but would pay it to Vail as a use tax at the time a building permit is issued. He,ishe would not be required to pay the Avon sales tax. (Rete~rence Avon Town Code 3.08.320) Continuing with Avon as an example, if the builder is doing business in Vail and having materials shipped to Vail, the materials are exempt ti-om Avon's 4°% sales tax because the point of delivery is outside the Town of Avun. (Reference ,aeon Town Code 3.08.040) The materials are also exempt from Vail's 4`% sales tax if the purchaser presents a building penliit number to the supplier delivering the material. Therefore, in the situation where construction and building materials are delivered into Vail for a project constructed under a b~-iilding pcnnit, a 4",~, use tax vvould increase the builder's cost by approximately 2% of his total project valuation, representing a 4% use tax on the value of material, which is estimated at 50% of project valuation. 1~ow much revenue would a construction use tax generate for the Town of Vail? The amount generated would be dependent upon the tax rate; assessed and the valuation of building permits issued in any given year. A 4%~ tax on building materials used in the, town would have generated an estimated $2 million in 2005; $4 miilion in 2006; and ~7 million in 2007. What vvould the revenue from a construction use tax he used for? A use tax can be used for any legitimate governmental purpose including capital expenditures and operating expenses. Vail's proposed ballot question specifies the tax vvould be used exclusively for capital acquisitions and capital projects within the Town of Vail. Are any organizations exempt from use tax? Organizational exemptions vary by taxing jurisdiction. Staff recommends the Town of Vail provide the same organizational exemptions for. use tax as are cun-ently defined in the town's sales tax code: a. The United State government, the state, its departments and institutions, and the political subdivisions thereof in their governmental capacities only; b. charitable organizations in the conduct of their regular charitable functions and activities; and ~. schools, other than sc}~ools held or conducted for private or corporate profit. _ ,, _ What considerations can be given to developers/builders who have already determined their project costs, but not yet received a building permit'? Town Council could include a provision in the implementation ordinance to rebate or exempt from use tax any projects whose development application is approved prior to the effective date of the tax. The development application approval is recommended as the key date because it marks the point at which the developer has vested rights to construct the project in accordance with the approved plan. Development of construction drawings and bidding of costs take place after development plan approval. What relief can be given to developers/builders who are constructing, work force housing'.' Similarly, Town Council could include a provision to rebate the use tax collected on materials used to build workforce housing. Longmont and Fort Collins have ordinances including this provision. -~- ;l ~'1 E 1'I O R,-~ N D U i\~I To: Vail Town Council From: Stan Zemler, Matt Mire, Judy Camp Date: August ~, 2007 Subject: Use Tax on Construction iVlaterials The following information is presented for your discussion on Tuesday evening regarding; a potential construction use tax in the Town of Vail, which, as we have discussed, would require approval by Vail's electorate. Key Dates 08/07/07 Council discussion of key elements of proposed use tax and review of draft ballot language . OS/21/07 Latest date for approval of resolution; tirst di-att of ordinance to implement proposed use tax prepared for discussion 09/21/07 Last day for ProiCon statements to be tiled with Town Clerk 10/0/07 Last day to mail TABOR ballot issue notices 1 1 /06/07 Election day 1 l;'2~~07 First reading of use tax ordinance, if approved by voters 12/04/07 Second reading of use tax ordinance, if approved by voters 12/ 18; 07 Council meeting -hack-up date for ordinance reading if needed O1/Ol/OS Earliest implementation oftax Note: These are key dates to meet the rcyuirernents for a TABOR election schedule. Additional time for discussion of the draft ordinance could be available during September and October council meetings as needed. Use Tax Questions and Answers (Q&A) What is a use tax? Generally, a use tax is levied on the privilege of using or otherwise consuming tangible personal property within a city or county for which no sales or use tax has been previously paid. It is considered complementary to a sales tax, and is applied regardless of where the property was purchased. For example, if the town levied a use tax on construction material, a amtractor pcn•chasing material for his job tram an out-of=state supplier could be assessed a use tax by the Town of Vail. A use tax may be applied generally to all tangible personal property used or consumed within a municipality or its application may be limited to vehicles andior construction and building materials. Staff'.recorrunends Corrnci! limit its cnnsidei'utl0rr .of use tc~r to corrstr•uction acrd brrildinb ~nater~ials. How common is a use tax:' Over Half the incorporated municipalities and counties in Colorado levy a use tax and the concept is well-supported by legislation and case law in Colorado. Examples of municipalities with use tax un building materials. include Broomfield, Dem~er, Eagle, Glemvood Springs, Grand Junction, Gypsum, Lakewood, Mountain Village, and Steamboat Springs. What has been the experience in other communities with use tax ballot iss«es? In April, ?007, Georgetown's electorate approved an extension of their 3°io use tax on vehicles to include construction and building materials. The 3% rate is the same as Georgetown's sales tax rate. In 1995, Gypsum passed a 3% use tax on residential construction and building material with ?0°i;, directed to administration and 80~~~ directed to roads. The use tax is one percentage point lower than Gypsum's ~°ro sales tax. [n 1998, Eagle passed a 4°% use tax on construction and building materials for capital projects. Eagle's sales tax and use tax are the same rate. Avon's ?002 building materials use tax ballot was defeated. The proposed rate was 4°%, which is the same as Avon's sales tax. Breckenridge's 1995 use tax ballot was defeated. The proposed 2._5° ~ rate was the same as Breckenridge's saps tax rate. Aspen is considering a use tax ballot for this November's election. Nlust the use tax rate be the same as the sales tax rate'? No, use tax rates are sometimes lower than the sales tax rate. What is meant by "construction materials"' The Vail Town Code defines construction materials as "Tangible personal property which, when combined with other tangible personal property, loses its identity to become: an integral and inseparable part of a complete structure or project including public and private improvements. Construction materials include, but are riot limited to, such things as asphalt, bricks, builder's hardware, caulking material, cement, concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling equipment, flooring, glass, gravel, insulation, lathe, lead, line, lumber, macadam miiiwork, mortar, oil, paint, piping, pipe valves, and pipe fittings; plaster, plumbing tixhu•es, putty, reinforcing mesh, road base, rooting, sand, sanitary sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs, and other landscaping materials, wallboard, wall coping, wallpaper, weather stripping, wire netting, and screen, water mains and meters, and wood preserver. The above materials, when used for frn-fns, or other items which do not remain as an integral or inseparable part of a completed structure or project are not construction materials. Construction materials do not include .. 1 ~ .~ such things as: carpeting, equipment, furniture, removable fixtures, window coverings, or similar items." If the Town already has a sales tax, why do we need a use tax on construction materials? Construction and building materials as defined above are exempt from the town's sales tax as long as the purchaser has obtained a building pe~7nit and provides the retailer selling him the material the permit number. Therefore, construction material is currently a category of tangible personal property upon which no tax is collected in the Town of Vail. As discussed below, building materials picked up at a supplier in another city or town are cun-ently subject to that town's sales tax. If Vail had a use tax collected at the time the building permit .is issued, the tax dollars related to the purchase would benefit Vail rather than the other locale. Also, a use tax on construction material may he counter-cyclical to the town's general sales tax, i.e., if sales tax is negatively impacted by construction, the use tax is in place to offset it during the construction period. How is a construction use tax collected? The simplest way to collect a construction use tax is to collect the entire amount at the time the building permit is issued. How is the amount of use tax determined'? The use tax amount is determined by multiplying the use tax rate by the cost of the building material. When collected at the time the building permit is issued, the estimated cost of building and construction materials is generally calculated by multiplying by fifty percent the total valuation ofthe construction project as entered on the building permit by the town building inspector. What if the builder/developer thinks the estimated value is too high or the town thinks the estimated value is too low? Use tax ordinances generally provide for an audit of the taxable value by either party within a reasonable period after construction is complete. Interest on any refund or deficiency is generally computed from the day the certificate of occupancy is iss~~ed. «'hat if a builder/developer purchases material for use in Vail from a supplier in a town that has a sales tax? Will he/she be subject to double taxation? i~1o. If the materials are delivered to Vail, the seller does not collect sales tax for the town or city where he/she is located, and only Vail's proposed use tax would apply. If the seller is located in Eagle County, he is required to collect Eagle County's l.~% sales tax. Ifhe is located in Colorado, he is required to collect the state's 2.9°/n sales tax. If the purchaser picks up the material from a seller located in a town or city with a sales tax, the materials are generally exempt from the local sales tax i/~thc~ pau•cl2asc:r pr~se~ats~ -3- S ' ~, to the seller cr huildi~r, pc~rnrit yr otltc>r doerunc~rrtatiorr creec~ptuhlc to the loco! ;v,~ernnu~nt „~lrcre tlrc~ rrn•cha.c~ to/:es p/ace, shol,~irrg that cr rrse tcr.~~ hers hccrr Maid. Phis is required by state statute for state-collected lo,:al jurisdictions and generally included in the ordinances ofselt=collected local jurisdictions. Colorado state statute also prohibits state-collected local j~u-isdictions from collecting a use tax on materials for which a legally imposed tax has already been collected by another city or town. If the sales tax collected was less than the use tax rey!iired; only thi; incremental amount of the use tax may be collected. Again, this is required by state statute and generally included in ordinances of selt=collected local jurisdictions. V1-'ill the proposed tax add to the builder/developer's project cost? If so, how much? Ln must cases, a use tax would result in additional cost to the purchaser of building materials for use in Vail. The additional amount depends upon the rate of the tax and how the builder is currently taking delivery on materials. For example, if the builder is currently picking up materials in Avon, a 4% sales t~.x is paid to the Town of Avon. If Vail had a 4°o use tax on construction materials, heishe would still pay 4°,~0, but woul~.i pay it to Vail as a use tax at the tune a building permit is issued. Heishe would not be- required to pay the Avon sales tax. (Reference Avon Town Code 3.OS.3 %0) Continuing with Avon as an example, if the builder is doing business in Vail and having materials shipped to Vail, the materials are exempt fi-om Avon's 4%, sales tax because the point of delivery is outside the Town of Avon. (Reference Avon Town Code 3.OS.0~0) The materials are also exempt ti-om Vail's 4% sales tax if' the purchaser presents a building permit number to the supplier delivering the material. Therefore, in the situation where construction and building materials are delivered into Vail for a project constructed under a building permit; a 4°io use tax would increase the builder's cost by approximately ?% of his total project valuation, representing a 4°i~ use tax on the value o:f material, which is estimated at 50°% of project valuation. How much revenue would a construction use tax generate for the Town of Vail? The amount generated would be dependent upon the tax rate assessed and the valuation of building permits issued in any given }%ear. A 4% tax on building materials used in the town would have generated an estimated $2 million in 2005; ~4 million in 200b; and 57 million in 2007. What would the revenue from a construction use tax be used for? .A use tax can be used for any legitimate governmental purpose including capital expenditures and operating expenses. The ballot question put before the voters in a TABOR election should specify use of the tax. Are any organizations exempt from use tax? Organizational exemptions vary by taxiing jurisdiction. Staff recommends the Town of Vail provide the same organizational exemptions for use tax as are cun•ently defined in the town's sales tax code: a. The United State government, the state, its depaz~tments and institutions, and the political subdivisions thereof in their governmental capacities only; -~- b. charitable organizations in tl~c conduct of their regular charitable functions and activities; and c. schools, ether than schools held or conducted for private or corporate pro tit. What considerations can be given to developers/builders who have already determined their project costs, but not yet received a building permit`' Council could include a provision in the ordinance to exempt from use tax any projects whose'dcvelopment application is «pprovec! prior to the effective date of the tax. The cicvelopment application approval is recommended as the key date because it marks the point at which the developer has vested rights to construct the project in accordance with. the approved plan. Development of construction drawings and bidding of costs take place after development plan approval. tiVhat relief can be given to developers/builders who are constructing work force housing? Council could include a provision to rebate the use tax collected on materials used to build workforce housing. Longmont and Fort Collins have ordinances including this provision. Issues for Council to Consider • A 4°,% use tax has the potential to generate over ~4 million in 2008; this revenue is lost forever if the ballot issue is delayed to a future }'ear. • A use tax woui~l address, at least in part, the ever-widening gap for funding of capital projects. Thk Capital Project Fund projection prepared for Tuesday's work session includes a ~;2>.8 rr~iliion shortfall over ~tive years. A use tax on construction material generating $4 to SS million annual_1y would essentially close the bap. Bonding against 84 million of annual use tax revenue could provide an estimated S40 million of capital projects finding. • Addition of a use tax on construction materials diversifies the town's revenue sources. $~.l million from use tax reduces reliance on sales tax from current estimate of ~8% of total revenue ti-om all sources in ?008 to 3~°~0. Use tax may also offset a loss of sales tax revenue from construction activity. • A use tax on construction and building materials directly impacts a narrow segment ot• the community. This is the same segment of the community impacted by the recent addition of commercial linkage; and inclusionary zoning and current consideration of increases in road impact fees and construction mitigation fees. Imposition of a use tax could discourage additional redevelopment activity. • Building and construction materials are the only major category of tangible; personal proper-ty specitlcally exempted from the Town of Vail's sales tax ordinance. A use tax would be complementary to the saps tax and provide consistent treatment among all categories of tangible personal property purchased or used in Vail. Key Decisions for a Construction Use Tax Ballot Issue What is the pl•oposed taY rate? Staff recommends a 4%, use tax on building and construction materials to be consistent with the sales tax rate. s- c ~ ' Is the proposed tax limited to buildin;~ and construction materials only? ~"es, statt~ recommends hllllting the proposed use tax to building„ and construction materials only. Staff further recommends a rebate on materials used in the construction of work force housing units. How will the proposed tax be paid? Staff recommends collection of thr:. proposed tlse t;lx ~It the time a building permit is issued with the tax assessed on 50°,/0 of the valuation of the project as reported on the permit. Adjustments to the tax could be determined by an audit requested by the town or the taxpayer. When will the proposed tax be implemented? Statt• recommends the tax become eti-ective with building permits issued utter January 1, 2008, with a spccitic exemption for projects who have received an uppi•oved development plan prior to that dale. Revisions to approved development plans would not be eligible for the exemption. N1ow will the proposed tax be used? Staff recommends funds generated from the proposed use tax be used for capital projects such as public buildings, roads, and infrastructure. -6- i ~ ~ ~ .. DRAFT QUESTION CONCERNING TOWN OF Vr11L CONS'T'RUCTION USE TAX FOR NOVE(~~IBER B:~LLOT SHALL THE TOWN OF VA[L'S TAXES BE INCREASED B~' 54,000,000 IN FISCAL PEAR 2UUS AND BY Vl'HATF.VER ADDITIONAL A.!~-10UNTS ARE RAISED ANNU'ALLl' THEREAFTER "THROUGH THE ADOPTION OF .~ USE TAX ON THE PRIVILEGE OF USING AND.OR CONSUMING IN THE TO~~'N OF VA[L ANY CONSTRUCTION AND,'OR BUILDING MATERIALS PURCHASED AT RETAIL INSIDE OR OUTSIDE THE TOVI~'N, AT THE RATE OF FOUR PERCENT (=4%) OF THE RETAIL COST OF SUCH MATERIALS AND SHALL THE "TOWN BE AUTHORIZED TO COLLECT AND SPEND SUCH REVENUES, INCLUDING ANA' INTEREST AND INVESTMENT INCOME THEREON, EXCLUSIVELY FOR CAPITAL ACQUISITIONS AND CAPITAL PROJECTS IN THE TOWN OF VAIL AS A VOTER APPROVED REVENUE CHANGE NOTW["I'HSTANDING ANY REVENUE OR EXPENDITURE LIMITATION, INCLUDING THOSE CONTAINED IN ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? Note: The above question was di acted by legal counsel in conformance with the requirements for a TABOR election. -~- <~ / RESOLUTION NO. 19 SERIES 2007 A RESOLUTION SUBi<-iITTING TO THE REGISTERED ELECTORS OF THE TOWN OF VAIL, COLORADO, AT A REGULAR i~1UNICIPAL ELECTION HELD ON NOVE><IBER 6, 2007, A BALLOT ISSUE CONCERI~iING THE ADOPTION OF A USE TAX TO FINANCE CA PI T <~L PRO.IEC T S AND ACQUISITIONS; AND PROVIDING OTHER DETAILS RELATING 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 (the "State") 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, the Council hereby finds and determines that it is in the public interest to adopt a four percent (4%) use tax in the Town on the privilege of storing, using and/or consuming any construction and/or building materials purchased at retail inside or outside of the Town; and WHEREAS, Article X, Section 20 of the Colorado Constitution, also referred to as the Taxpayer's Bill of Rights ("TABOR" any increase in any tax rate, the creation of any debteand theaspendi gfof e ain tax, above limits established by TABOR; and nds WHEREAS, TABOR requires the Town to submit ballot issues (as defined in TABOR) to the Town's electors on limited election days before action can be taken on such ballot issues; and WHEREAS, the Town will hold its regular municipal election on November 6, 2007 (the "Election"); and WHEREAS, November 6, 2007, is one of the election dates at which ballot issues may be submitted to the Town's electors pursuant to TABOR; and WHEREAS, pursuant to Section 2.3 of the Charter, the Council hereby determines that the Election shall be held and conducted as a polling place election in accordance with Article 10 of Title 31, Colorado Revised Statutes ("C.R.S.") (the "Municipal Election Code"); and WHEREAS, the Council is of the opinion that the Town should seek voter approval to increase taxes for the purpose provided in this resolution; and WHEREAS, it is .necessary to set forth certain procedures concerning the conduct of the Election. Resolution No. 19, Series 2007 NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Unless otherwise defined herein, all terms used herein shall have the meanings defined.in TABOR and in Section 31-10-102, C.R.S. Section 2. Pursuant. to Section 31-10-105, C.R.S. and Section 2.5 of the Charter, the Election Commission of the Town. shall perform all ac+.s required or pen.~itted by iaw in connection with. the Election, which Election shall be held and conducted as an independent polling place election. Section 3. Pursuant to the applicable laws of the State and the Charter, the Council hereby determines that the following ballot issue is hereby referred to the registered electors of the Town and shall appear on the ballot of the Town of Vail, Colorado, at the Election: SHALL THE TOWN OF V:AIL'S TAXES BE INCREASED BY $4,000,000 N FISCAL YEAR 2008 AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER THROUGH THE ADOPTION OF A USE TAX ON THE PRIVILEGE OF STORING, USING AND/OR CONSUMING IN THE TOWN OF VAIL ANY' CONSTRUCTION AND/OR BUILDING MATERIALS PURCHASED AT RETAIL NSIDE OR OUTSIDE THE TOWN, AT THE RATE OF FOUR PERCENT (4%) OF THE RETAIL COST OF SUCH MATERIALS AND SHALL THE TOWN BE AUTHORIZED TO COLLECT AND SPEND SUCH REVENUES, INCLUDING ANY INTEREST AND INVESTMENT IlVCOME ~ THEREON, EXCLUSIVELY FOR CAPITAL ACQUISITIONS AND CAP][TAL PROJECTS I1V THE TOWN OF VAIL AS A VOTER APPROVED REVENUE CHANGE NOTWITHSTANDING ANA' REVENUE OR EXPENDITURE .LI'MI'TATION, INCLUDING THOSE CONTAIiVED IIv ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? Section 4. If a majority of the votes cast on the question to levy a use tax submitted at the Election shall be in favor of issuance of the levy of the use tax as provided in such question, the effective date of said tax shall be January 1, 2008, and the 'Town, acting through the Council, shall be authorized to adopt an ordinance levying the tax in accordance with such question and to provide for the administration and collection of the tax. Any authority to levy the use tax, if conferred by the results of the Election, shall be deemed and considered. a continuing authority to levy the tax so authorized at any one time, or from time to time, and neither the partial exercise of the authority so conferred, nor any lapse of time, shall be considered as exhausting or limiting the full authority so conferred. Section 5. It is the intention of the Council that when an ordinance is adopted to levy, administer and collect the use tax, said ordinance shall include a provision to exempt or to rebate the use tax collected on materials used to build workforce housing. Resolution No. 19, Series 2007 .~ Section 6. The officers and employees of the Town are hereby authorized and directed to take all action necessary or appropriate to effectuate the provisions of this resolution. Section 7. All actions heretofore taken (not inconsistent with the provisions of this resolution) by the Town and the officers thereof, directed towards the Election and the objects and purposes herein stated are hereby ratified, approved and confirmed. ; Section 8. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall in no manner affect any remaining provisions of this resolution, the intent being that the same are severable. Section 9. All resolutions or parts of resolutions inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any resolution or part of any resolution heretofore repealed. INTRODUCED, READ, APPROVED AND ADOPTED this August 21, 2007. Rodney E. Slifer, Mayor (SEAL) ATTEST: Lorelei Donaldson, Town Clerk Resolution No. 19, Series 2007 \ \ . STATE OF COLORADO ) COliNTY OF EAGLE )~SS. TOWiV' OF VAIL ) I, the 'Town Clerk of the Town of Vail, Colorado, do hereby certify that: 1. The foregoing pages are a true, perfect and complete copy of a resolution (the "Resolution") passed and adopted by the Town Council (the "Council") constituting the governing board of the Town of Vail, Colorado (the "Town"), at a regular meeting of the 'Town held at the Town Hall on August 21, 2007, convening at the hour of 6:00 p.m. as recorded in the regular book of official records of the proceedings of said Town of Vail kept in my office. 2. The Resolution was duly moved and seconded and the Resolution was adopted at the meeting of August 21, 2007, by an affirmative vote of a majority of the members of the Council as follows: Narne ``Y'es" "No" Absent I Abstain Rod Slifer f Kevin Foley X I Mark Gordon X Kim Newbury h Kent Logan X i Greg Moffet X Farrow Hitt X 3 voted on the passage of such Resolution as set forth above. The members of the Council were present at such meeting and Resolution No. 19, Series 2007 4• The Resolution was approved and authenticated by the signature of the Mayor, sealed with the Town seal, attested by the Town Clerk and recorded in the minutes of the Council. 5• There are no bylaws, rules or regulations of the Council which might prohibit the adoption of said Resolution. 6• The notice of the meeting of August 21, 2007, in the form attached hereto as Exhibit A, r~,as posted at the Town Hall, not less than 24 hours prior to the meeting in accordance with law. WITNESS my hand and the seal of said Town affixed this August 21, 2007. Town Clerk (SEAL) Resolution No. 19, Series 2007 EXHIBIT A (Attach Form of Meeting Notice) Resolution No. 19, Series 2007 • ORDINANCE NO. 37 Series of 2007 AN ORDINANCE ADOPTING A USE TAX ON CONSTRUCTION AND BUILDING MATERIALS; AMENDING TITLE 2, REVENUE AND FINANCE, VAIL TOWN CODE BY THE ADDITION OF CHAPTER 8 "USE TAX ON CONSTRUCTION AND BUILDING MATERIALS"; AND SETTING FORTH DETAILS IN REGARD THERETO WHEREAS, the Town of Vail (the "Town"), in the County of Eagle and State of Colorado, is a home rule municipal corporation duly organized and existing under laws of the State of Colorado and the Town Charter (the "Charter"); WHEREAS, the members of the Town Council of the Town of Vail (the "Council") have been duly elected and qualified; " WHEREAS, at an election held on -.November 6,,,2007, `the voters of the Town approved the following ballot question: "SHALL THE TOWN OF VAIL'S TAXES BE INCREASED BY $4,000;000 IN FISCAL YEAR 2008 AND BY WHATEVER ` : ADDITIONAL' AMOUNTS ARE RAISED ANNUALLY ,_ THEREAFTER THROUGH TIDE" ADOPTION OF A ..USE TAX `ON THE PRIVILEGE OF STORING, USING AND/OR CONSUMING IN THE TOWN OF VAIL ANY CONSTRUCTION AND/OR BUILDING MATERIALS PURCHASED AT RETAIL INSIDE OR OUTSIDE THE TOWN, AT THE RATE OF FOUR PERCENT (4%) OF THE RETAIL COST OF SUCH MATERIALS AND SHALL THE TOWN BE AUTHORIZED TO COLLECT AND SPEND SUCH REVENUES, INCLUDING ANY INTEREST AND INVESTMENT INCOME THEREON, EXCLUSIVELY FOR CAPITAL ACQUISITIONS AND CAPITAL PROJECTS IN THE TOWN OF VAIL AS A VOTER APPROVED REVENUE CHANGE NOTWITHSTANDING ANY REVENUE OR EXPENDITURE LIMITATION, INCLUDING THOSE CONTAINED IN ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?"; and WHEREAS, the following amendments to the Vail Town Code are necessary to provide for the use tax approved at the election. 1 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAlL, COLORADO 'T'HAT: Section 1. Title 2 of the Vail Town Code is hereby amended by the addition of a new Chapter 8 to read as follows: CHAPTER 8: USE TAX ON CONSTRUCTION AND BUILDING MATERIALS Section: 2-8-1: Title, Purpose and Applicability 2-8-2: Definitions 2-8-3: Imposition and Rate of Tax 2-8-4: Collection 2-8-5: Exemptions 2-8-6: Duties and powers of Finance Director 2-8-7: Books, .Records, Reports and Returns 2-8-8: Audit 2-8-9: Limitation,of Actions 2-8-10: Lien 2-5-11: Penalties and Interest 2-8-12: Remedies not Exclusive 2-8-13: Refunds 2-8-14: Hearing before Finance Director 2-8-15: Disposition of Funds 2-8-16 Violation and Penalty 2 2-8-1: TITLE, PURPOSE AND APPLICABILITY: (A) This Chapter shall be known as and referred to as "Use Tax on Construction and Building Materials." (B) The purpose of this Chapter is to raise revenue for capital acquisitions and capital projects in the Town and provide a complimentary tax to the Town's sales tax. The Town Council finds that every person who uses or consumes in the Town any construction and building materials is exercising a taxable privilege. (C) Subject to the specific exemptions listed in Section 2-8-5 of this Chapter, this Chapter and the use tax imposed by this Chapter shall apply to any use or consumption in the Town of construction and building materials purchased at retail inside or outside the Town on or after January 1, 2008. 2-8-2: DEFINITIONS: When not otherwise clearly indicated by the context, the following terms, words, and phrases,.as used in this Chapter, shall have the following meanings: BUILDING PERMIT: The permit issued by the Tawn under the International Building Code, as:adopted, which allows construction to begin, not including demolition`perrnts or de-watering permits. -CONSTRUCTION AND BUILDING MATERIALS:- Tangible personal property which, when combined with other tangible personal property, loses its identity to become an integral and inseparable part of a completed structure or project. Construction materials include, but are not limited to, such things as: asphalt, bricks, builders' hardware, caulking material, cement, concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling equipment, flooring, glass, gravel, insulation, Path, lead, lime, lumber, macadam, millwork, mortar, oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh, road base, roofing, sand., sanitary sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs and other landscaping materials, wall board, wall coping, wall paper, weather stripping, wire netting and screen, water mains and meters, and wood preserver. The above materials, when used for forms, or other items which do not remain as an integral or 3 inseparable part of a complete structure or project, are not construction and building materials. CONSTRUCTION VALUATION: The total value of the work, including labor and construction and building rriaterials, as determined by the Building Department for purposes of issuing the building permit for a project. CONSUMPTION: The act or process of consuming; it includes waste, destruction, or use. Consumption is the normal use of property for the purpose for which it was intendE;d. FINANCE DIRECTOR: The administrative services director of the Town or such other person designated by the Town; Finance Director shall also include such person's designee. PURCHASE OR SALE: The acquisition for a price by any person of tangible personal property, including installment and credit sales, the exchange of property, as well as the sale thereof for money, and every such transaction, conditional or otherwise, fora consideration constituting.. a sale. PURCHASE PRICE: The aggregate value in money: of anything or things paid or delivered or promised to be paid or delivered by a purchaser to a retailer or any person in the consummation of a retail sale as defined herein, without any deduction therefrom for the cost of the property sold, cost of materials used, labor or service cost, or any other expense whatsoever, and provided that when articles of tangible personal property are sold after manufacture or after having been made to order, the gross value of all materials, labor, service, and profit thereon, shall be included in the said purchase price; provided that this purchase price shall not include any direct tax imposed by the federal government, the State or this Chapter. RESIDENT: A person who resides or maintains his or her domicile within the Town, or who maintains one or more places of business within the Town, provided that a person may have dual residence or other places of residency or domicile, or place of business outside the Town prior to, during, or after the occurrence of the taxable transaction and be a resident. 4 RETAIL SALE OR PURCHASED AT RETAIL: Any sale or purchase of tangible personal property, except a wholesale sale or purchase for taxable resale. TAXPAYER: Any person from whom a tax is due, or against whom a deficiency is being asserted. USE: The exercise, for any length of time, by any person within the Town of any right, power, or dominion over tangible personal property when purchased at retail from sources either within or without the Town from any person. 2-8-3: IMPOSITION AND RATE OF TAX: (A) .There is hereby imposed a use tax on th'e privilege of using or consuming within the Town construction and building materials purchased at retail inside or outside the Town on or after January 1, 2008; provided that any construction and building materials used or consumed on ,a project which has received final approval on the development application'. prier to January 1, 2008 shall not be subject to the use tax .imposed by this Chaptet: (B) The use:~ax imposed lay this Chapter shall beat the rate of four percent (4%).of ttae cost of construction and building materials used or consumed' in the Town. For purposes of this Chapter, the cost of construction and building materials is deemed to be fifty percent (50%) of the construction valuation. 2-8-4: COLLECTION: Every contractor, subcontractor, or other person who builds, constructs, reconstructs, alters, expands, modifies or improves any building, dwelling, or other structure or improvement to real property shall pay to the Town the use tax imposed by this Chapter at the time of issuance of a building permit. 2-8-5: EXEMPTIONS: The following are exempt from the use tax imposed by this Chapter, provided that the list of exemptions cannot be increased by implication or similarity, and the burden of proof is upon the taxpayer to establish an exemption: (1) The use or consumption of any construction and building materials the sale of which is subject to a retail sales tax imposed by the Town; 5 (2) The use or consumption of construction and building materials purchased, for resale in the Town, either in their original form or as an ingredient of a manufactured or compounded product, in the regular course of a business. (3) The use or consumption of construction and building materials by the federal government, the State or its institutions or political subdivisions in their governmental capacities;, or by religious or charitable corporations in the conduct of their regular religious or charitable functions; (4) The use or consumption of construction and building materials by a person engaged in the business of manufacturing or compounding for sale, profit, or use of any article, substance, or commodity, which construction and building materials enters into the processing of or becomes an ingredient or component part of the product or service which is `manufactured, compounded, or furrii"shed, and the container, IaCel°, or the_ furnished'shipping case thereof; (5) The use or cans~amptiom of any constructiar~ and building materials the sale or use of which has alr~~ady been subjected to a legally imposed sales or'use tax of another tatutory or home rule town, city, or city and county equal to or in excess of the use tax imposed herein, in which case a credit shall be granted in an amount equal to the tax paid by reason of the imposition of such sales or use tax, provided that the amount of credit shall not exceed the amount of the use tax imposed.by this Chapter; (6) The use or consumption of construction and building materials if a written contract for the purchase: thereof was entered into prior to January 1, 2008; (7) The use or consumption of construction and building materials required or made necessary in the performance of any construction contract bid, let, or entered into at any time prior to January 1, 2008; (8) The storage of construction and building materials; (9) Any transaction which the Town is prohibited from taxing under applicable law; or 6 (10) Construction and building materials used or consumed in the construction of employee housing units, as defined by Title 12, that are subject to a deed restriction approved by the Town. 2-8-6: DUTIES AND POWERS OF FINANCE DIRECTOR: The administration of this Chapter is hereby vested in the Finance Director, who shall prescribe forms and promulgate rules and regulations for the proper administration and enforcement of this Chapter, and may delegate to any person the power and authority necessary for the proper administration and enforcement of this Chapter. 2-8-7: BOOKS, RECORDS, REPORTS AND RETURNS: (A) Every person liable to the Town for any use tax imposed by this Chapter sha11 keep and preserve for a period of three (3) years all books, records, reports and returns necessary to determine the amount of tax liability. (B~) All such books, records, reports and returns shall be open for examination at any time by the Finance Director. (C) Except by court order or as otherwise provided byelaw, the Finance Director shall not divulge any .information disclosed in any document, report, or return filed pursuant to this Chapter. (D) Nothing in this Section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection of returns by the Town Attorney or other legal representative of the Town. (E) Notwithstanding this Section, the Finance Director. may furnish to the taxing officials of any other state or its political subdivisions, to the State of Colorado or its political subdivisions, or to the United States any information contained in tax returns and related schedules and documents filed pursuant to this Code, or in the report of an audit or investigation made with respect thereto, provided that said jurisdiction enters agrees to grant similar privileges to the Town, and that such information will only be used for tax purposes. 7 2-8-8: AUDIT: (A) Within three (3) years from thE; issuance of certificate of occupancy for the improvement on which the use tax was paid, the Town may audit the taxpayer or the taxpayer may request an audit; at the taxpayer's sole cost. (B) If the recomputed use tax is less than the amount of use tax paid by the taxpayer, the difference sha11 be refunded to the taxpayer. If the recomputed use tax is more than the amount of use tax paid by the taxpayer, the difference shall be paid by the taxpayer to the Town. 2-8-9: LIMITATION OF ACTIONS: (A) Use tax, interest, and penalties shall be assessed, and any action to collect the same shall be commenced, within three (3) years of the issuance of certificate of occupancy for the improvement on which the use tax was paid. (B) Before the expiration of such period of limitation, the taxpayer and the Finance Director may agree in :writing to an extension. (C) ` In the case of fiailure to file a return, the use tax may be assessed and collected at any time. 2-8-10: L.1~N: :. (A) ff any tax, penalty, or interest roue under this Chapter is not paid within ten (10) days after the date due, the Finance Director shall issue a notice, setting forth the following: (1) Name of the taxpayer; (2) Amount of the tax, penalties, and interest due and the date of the accrual thereof; and (3) A statement that the Town claims a first and prior lien therefore on the real and tangible personal property of the taxpayer in the amount stated. (B) The notice may be filed in the office of the clerk and recorder of any county. in the state in which the taxpayer owns real or tangible personal property, and the filing of the notice shall perfect the Town's lien. 2-8-11: PENALTIES AND INTEREST: (A) If any person fails, neglects, or refuses to make a return or pay the use tax as required by this Chapter, or if any taxpayer fails to remit the proper amount of 8 tax or underpays the tax, penalties, and interest shall be added and imposed in accordance with this Section. (B) Interest shall be imposed from the date on which a payment is due to the date paid at the rate established pursuant to Section 39-21-110.5, C.R.S. (C) If a person neglects or refuses to file a return or pay any use tax as required, the Finance Director shall make an estimate, based upon such information as may be available, of the amount of use tax due for the period for which the taxpayer is delinquent and shall add thereto a penalty equal to ten percent (10%) of the total amount due plus one-half percent (0.5%) per month from the date due, not exceeding eighteen percent (18%) in the aggregate, plus interest. (D) The Finance Director may waive, for good cause shown, any penalty or interest. 2-8=12: REMEDIES N®T EXCLUSEIlE: In addition to the remedies expressly provided by this Chapter, the Town may pursue any other remedies available at law or in equity. 2-8-13: REFURiDS: (A) A refund shall be made, oc a credit allowed, for use tax paid under dispute by any person who is entitled to claim an exemption under Section 2-8-5, if a request for refund is made within sixty (60) days after issuance of the building permit for which the use tax was paid under dispute. (B) An application for refund of tax paid in error or by mistake shall be made within three years (3) after the date of use or consumption of the construction and building materials for which the refund is claimed. (C) The right of any person to a refund under this Chapter shall not be assignable and the application for refund shall be filed by the taxpayer. (D) The burden of proving the right to a refund shall be on the person claiming the refund. (E) Upon receipt of a timely application, the Finance Director shall promptly examine the application, make a decision, and notify the applicant in writing of the decision. 9 (F) If the Finance Director finds that the use tax, penalty, or interest paid by any taxpayer is in excess of the amount due or has been erroneously collected, the Finance Director shall rule in favor of the taxpayer for refund, regardless of whether or not such sum was paid under dispute. The Finance Director shall issue payment to the taxpayer; provided that the Finance Director shall retain a statement setting forth the reason for the refund. If there is an unpaid balance of use tax, penalties, or interest owed by such taxpayer for any other period, the overpayment shall be applied against the amount due and any excess shall be refunded to the taxpayer. 2-8-14: FIEARING BEFORE FINANCE DIRECTOR: (A) A taxpayer may file a written request fora hearing on any assessment or denial of refund request within ten (10) days of the decision of the Finance Director. The request for hearing shall set forth the taxpayer's reasons for the request acid the disputed amount. (B) The hearing shall be held and a final decision issued within ninety (90) days of the date of the request, unless a delay.: is caused by the taxpayer,'. in which case the hearing shall` be held and final decision shall be issued within one hundred eighty (180) days of the request. At leas# fifteen (15) days prior to the hearing, the Finance Director shall notify the taxpayer in writing of the time and place of the hearing. (C) At the hearing, the Finance Director may administer oaths and take testimony, and the taxpayer may assert any facts, make any arguments, and file any briefs or affidavits, he or she believes pertinent to his or her cause. (D) Based on the evidence presented, the Finance Director may modify, refund or abate the use tax, penalty, or interest. (E) Upon rejection, in whole or in part of the claim for refund, or upon a finding that an assessment in whole or in part has been made against the taxpayer validly, the Finance Director shall send a hearing determination notice to the taxpayer in compliance with Section ~ 9-2-106.1(2)(a), C.R.S. (F) The decision of the Finance Director shall be final, subject only to 'the State hearing and appeal procedures outlined in Section 29-2-106.1, C.R.S. and 10 judicial review. Unless a State hearing is requested, an appeal is filed or judicial review is sought, the use tax, together with interest thereon and penalties, if any, shall be paid within thirty (30) days after mailing of the Finance Director's hearing determination notice. (G) If a State hearing is requested, an appeal filed orjudicial review is sought, the Finance Director may require payment of the tax or the pasting of security only as provided in Section 29-2-106.1, C.R.S. 2-8-15: DISPOSITION OF FUNDS: (A) All revenues derived from the use tax, less costs of collection and administration, shall be placed in the Town's Capital Projects Fund and used for capital acquisitions and capital projects. (B) There shall be budgeted from the monies received from the imposition of the use tax an amount necessary to reimburse the Town for administrative and clerical expenses incurred in the collection :and administration of the use tax. 2-$-16: VIOLATION AND PENALTY: .~: (A} ', It is a via{ation of this Chapter for any person subject to; the use tax levied by'this Chapter`to refuse to make any required. return, to submit any false or fraudulent=return, to make any fa{se statement o~ any return, to fail to make payment of any taxes due, to evade the payment of any taxes due, or to aid or abet another in any attempt to evade the payment of any taxes due. (B) Any person who violates any provision of this Chapter shall be punished as provided in Chapter 1-4-1 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 effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 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. 11 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, ANC- ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 4th day of De~emt~~r, .2007, and a public. hearing for: second reading of this Ordinance set` for the 18th day of December, 2007, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Town Mayor Attest: Lorelei Donaldson, Town Clerk 12 Memorandum To: Town Council From: Judy Camp Kathleen Halloran Date: November 15, 2007 Subject: Mil Levy Ordinance You will be asked to approve the attached mil levy ordinance upon first reading on Tuesday evening. This ordinance authorizes the collection of property taxes in 2008 based upon 2007 assessed valuations of property within the town's boundaries. Eagle County is responsible for assessing values and for collecting property taxes on our behalf. The town is required by Colorado state law to certify the mil levy by December 15 of each year. Since two readings of an ordinance are required, we will bring the first reading on Tuesday and the second reading on December 4. to enable us to meet the December 15 date. The attached ordinance is based on estimated assessed valuations from the county. Final assessed valuations will be available prior to second reading and the amount to be collected will be adjusted accordingly. Due to the 43% increase in assessed valuations, we have been advised by the County to expect significant adjustments from appeals and Tax Increment Financing (TIF) District impact. Based on the original assessed valuations, the property tax authorized by the attached ordinance may generate approximately $4.1 million in revenue in 2008. However, we have conservatively budgeted $3.7 million, with the assumption that final valuations will come down by 14.5% (an increase of 28.5% from prior year). Property tax represents approximately 8% of the town's total revenue 1 ORDINANCE N0.36 SERIES OF 2007 AN ORDINANCE PROVIDING FOR THE LEVY ASSESSMENT AND COLLECTION OF TOWN AD VALOREM PROPERTY TAXES DUE FOR THE 2007 TAX YEAR AND PAYABLE IN THE 2008 FISCAL YEAR. WHEREAS, it is necessary for the Town Council to provide for the levy, assessment and collection of Town ad valorem property taxes due for the 2007 year and payable in the 2008 fiscal year. NOW, THEREFORE, be it ordained by the Town Council of the Town of Vail, Colorado, that: 1. For the purpose of defraying part of the operating and capital expenses of the Town of Vail, Colorado, during its 2008 fiscal year, the Town Council hereby levies a property tax of 4.69000 mills upon each dollar of the total estimated assessed valuation of $867,288,560 for the 2007 tax year of all taxable property within the Town, which will result in a gross tax levy of $3,660,000 calculated as follows: Base mill levy 4.690 $4,067,583 Abatement levy .006 5,204 Total mill levy 4.696 4 072 787 Said assessment shall be duly made by the County of Eagle, State of Colorado, as directed by the Colorado Revised Statutes (1973 as amended), and as otherwise required by law. 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. 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. Ordinance 32, Series of 2006 4. The repeal or the repeal and reenactment of any provision of the Municipal Code of the Town of Vail as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. All bylaws, orders, resolutions, and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency.. This repealer shall not be construed to revise any bylaw, order, resolution, or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED AND ORDERED PUBLISHED ONCE IN FULL, this 20th day of November, 2007. A public. hearing shall be held hereon at 6 P.M. on the 4th day of December, 2007, at the regular meeting of the Town Council of the Town of Vail, Colorado, in the Municipal Building of the Town. Dick Cleveland, Mayor: ATTEST: Lorelei Donaldson, Town Clerk Ordinance 32, Series of 2006 2 CORE SITE DEVELOP~~iENT AGREEMENT THIS CORE SITE DE LOPI~IENT AGREE:-iEi~TT (this "Agreement" is made effective as of the~4 day of ) the TOw~N Or VA1L, a municipal corporation duI or~ ~ X004, by and between virtue of the laws of the State of Colorado (the °°Toµ,nzed end existing under and by AUTHORITY, a body corporate duly organized and existin'Aas REINVESTMENT author.'ty under the laws of the State of Colorado (the Authors an urban ~renPwa! CORPORATION, D,BiA VAIL ASSOCIATES • Associates"). ~C•, a Colorado"corporation (``Vail 1 • Vail Associates, Inc., intends to redevelop the site that it Lionshead area of the Town of Vail to the north of the Eagle Bahr Gondola °wns in the which is commonly referred to as the Lionshead " facilities and Exh-?bi_t A attached hereto (the "Core Site Pr° e Core", and more fully described in herein as the "Core Site Project." P rty")• That redevelopment is referred to ?• Vail Associates intends that the Core Site Project be coin rise n"~ixed-use real estate project, which will include residential condominitun P d of a multi-family ututs; public accommodations, including hotel and/or la~nd/or other commercial retail uses, including, without limitation, restawants, coffee sho s and eating and drinking establislvnents; public and recreational dge uses; uses a~1d structures, including, without limitation, an outdoor skati~ig rink, open- plaza and oth P °ther recreational or entenainrnent activities and er areas allowing for and ski clubs or similar associations or operations relating to sporting, recreational or outdoor activities• uses, improvements and .facilities complement related to any of the foregoing ~'' supplementary 'and °~'1er a, including, without limitation 'ancillary, incidental or access ways and facilities, and 1°ading/delivery facilities. 'Pedestrian and vehicular 3• The Toc~n's Flanning a:ld Environn-1ental Commission ha, a design and development plar<s for the Core Site Project as set forth or Exhibit B as app ~ ~ pproved -------_-~ roved o.~ Septemo~r 27 004, and attached hereto theferenced °n Design Approvals"). ( Core Site 4• The Core Site Pro e restrictions on title that are incons s~ t with thebCore Site pro eIC C°venants and °ther Associates and as approved by the Town ii; the Core Site Desi J t ~ proposed by Vail &t Approvals. 5• Pursuant to the Lionshead Reinvestment Agreement, the Auth initiated a condemnation action to acquire the Core Site Prope for removing the covenants and other restrictions on title that are irc only has Site Project as proposed by Vail Associates and as a ~ ~e Purpose of onsistent with the Core Design Approvals. Also pproved by the Town in the Core Site completion of the condemnation uproceo ise contin en d uRo investment Agreement, Associates entering into this Agreement. g p n the Town and Vail MUR159599.0 ] 1486462.4 6• Initially capitalized terms used but not defined herein sh meanings ascribed thereto under the Lionshead Reinvestment Agreemen all have the t. ~'O~'', THEREFORE, in consideration of the above premises and the mu covenants and agreements set forth herein, the parties agree as follows: teal I • Const"uction Drav~in s: ~ ~• Agreement, Vail Associates will provide evidence to thenTaa~strof execution of this contract with and authorized its azchitects, 42,' at It has entered into a construction drawings for the Core Site Project.40 Architecture, Inc. to co mmence final 2• Conditions of Vail Associates Prior to Closin As mutual Closing: conditions to and desi a) VaII Associates will apply for and obtain all necessa land ~ approvals from the Town and will obtain all necessary buildin e use the construction of the Core Site Project. g p units for other grants, approvals oridispos Lions fwill obtain easement are necessary for proceeding with the cons-tn.ic eonooders of affecgted t rO~d vacations and f the Core Site Projector Interests that c) Vail Associates will secure adequate financing as is necess the sole discretion of Vail ,associates, for the construction of the Core ' the Town acknowledges may be dependent upon pre-sales and other ~' in Site Project, which factors. d) ~ Upon the satisfaction of the Conditions specified in a) throe above, Vail Associates shall give written notice to the Authori satisfaction of all of the Conditions. Written notice shall include e gh c) the Authorit<,~ and the Town in their rep ~ and the Town of the all of the Conditions. ~pective reasonable discretion, of the satisfaction of 3• The Authority's Re.. uirements .Prier to Closin . Authori a) Within fifteen I ty, with the consent and stipulation of Vail Associatestlw of this Agreement, the judgment from the District Court in Civil Action No. 2 Ill apply f°r and obtain a Proceeding") declaring that the Property has been condemned and e`Eminent Domain parties have been determined, subject to the issuance of a Rule aride interests of all request of the parties: The judgment will specify that if no Rule and Orde requested on or before October 1, 2008, that the 'u Order upon the Petition in Conde J dgment will be vacated handbthe mnation dismissed. b) Within fourteen (14) days of written notice from Vail As that it has satisfied all of the Conditions of Vail Associates Prior t above, the Authori sociates ty, with the consent and stipulation of Vail Associates, will obttain a Rule and Order from the District Court in the Eminent Domai unencumbered fee title in the Property to the Authority, n Proceeding conveying MUP,',S 9599.011486462.4 2 `1' C'1°sin~: Upon entry of the final Rule and Order under Section ; above, the Authority the Tow;, and Vail Associates will proceed to conduct (b) .(the ``Closing") on a mutually agreeable date not more than ten (10) da}'s after coa closing of the Eminent Domain Proc;.eding by the District Court's entry of the final mpletion Order therein. Rule and a) Authoriri~ Oblications at Closin :The Authority will duly execute acknowledge and deliver a special warranty deed (the "Deed") convevin tree Property to Vail Associates ~ g Cure Site Pro e ~ subject only to the Remaini P rty, real property taxes and assessments, and new restrictive co enants for thee Site Site Property attached as Exhibit D-1 to the Lionshead Reinvestment Q Core (collectively the "Permitted Except~~) Abreement b) Tow'n's Obli ations at Closin : c) (ii) Vail Associates' Obli ations at Closin (i) At Closing, or thereafter if and to the extent elected by Vail Associates, the Town will vacate or abandon any pre-existing utility easements in its favor that have locations conflicting with the approved development of the Core Site Project and the corresponding configurations of r~rater, sanitary sewer, storm drainage and d furtherance of the development of the Core S~e Project, the Town will grant, across and upon any pertinent easement or property ownership interests held by the Town, and/or accept new corresponding public or quasi-public easements for the affected utilities and other services as configured for the development of the Core Site Project, subject to the Town's approval of those configurations as they may atTect Town property interests. The Town will convey to Vail Associates fee title to those portions of Tract C, Vail/Lionshead First Filing, and Tract C, Vail/Lionshead "Tract C" Third Filing (collectively ultimately) w 1l bep encrotach ~~' b by. the Town and that improvements, as set forth in the development plans f o~ the , Core Site Project approved b Environmental Co Y Town's Planning and mmission and Design Review Board. Specific legal descriptions far those encroachment areas will be established administratively during the Towns approval processes governing the final plans for issuance of building permits for the Core Site Project, and/or any replatting process for the Core Site Property. MUR`,S 9599.0 ]',486462.4 3 (1) At Closing Vail Associates will furnish the Town with a promissory note or other form of personal financial undertaking committing to pay the sum of $3,000,000 (the '~Finarcial Commitment."), as security and collateral for the commencement by Vai] Associates of the Core Site Project as evidenced by the commencement of "Vertical Construction" as set forth herein. "Vertical Construction" `hall =rear; above ground construction of the frame or at least one elevator core for the Core Site Project. (ii) The Financial Commitment will be released by the Town if the commencement of Vertical Construction occurs on or before July 1, 2008; provided, that if excavation for the Core Site Project has commenced on or before July 1, 2008, the Financial Commitment will be released if Vertical Construction is commenced on or before July 1, 2009. The Town shall be entitled to convert the Financial Commitment to cash for its sole and exclusive use if the commencement of Vertical Construction does net occur on or before July 1, 2008; provided, that if excavation for the Core Site Project has commenced on or before July 1, 2008, the Financial Commitment will be released if Vertical Construction is commenced on or before July 1, 2009. 5• Public Infrastructure. Vail Associates will construct or cause to be constructed public streetscape improvements within the streetscape area depicted on the drawing referenced on Exh~ ~ arached hereto. These public streetsca e im rov include improvements on property owned by Vail Associates R p ements ("On-Site streetscape Improvements") and improvements in public ri ht of u~ T ("Off-Site Streetscape Improvements"~ g aY or other ~ own properties cause to be constructed certain right of-way ~m~p~o ~tment:Atooo~ates will construct or Place adjacent to the Core Site Pro ert r affecting Lionsl-,ead will specifically delineate the On Site ands Off-SitePStr etscarovements"). The pe Improvements to be undertaken in the process of the development plan approvals for Parties rendered by the Tcwn's Desi T a the Core Site Project o~ornparable to those historically employe by the To n forsst~pe and quality standards The required Lionshead Place Improvements will be consistent wish thoselnro ad V'llage. the Core Site Design Approvals. The On-Site and Off-Site Streetsca e pm r ed for in and the Lionhead place Improvements, as applicable, will otherwise be undert ements accordance with the following: aken in a) Certain Off-Site Streetscape Improvements may encroach into third-party property interests. To the extent they do, it will be necess for secure the consents of the affected third- art ~' the Town to cannot be obtained in a timely mannerpcons stentrwithoVa'l Associate those consents schedule, then the undertaking of the affected Off-Site Streetscape Im roveme onstruction P nts will not MtiR159599.011486462.4 4 condition the development or occupancy of the Core Site Project, so long as Vail Associates posts or causes to be posted security with the Town (by a letter of cre ' other reasonably acceptable financial device) in an amount based on then prevailin r construction values in the market. The Town can then undertake the pertinent Off-Site Streetscape Impro~~ements by recourse to the security provided, if and when third-party consents are obtained, and ~i~ith the Town to bear any excess costse rAt Butte time, if ever, as the Town, acting in good faith, determines that it will not be able ch secure the requisite third-party consents for an ~ a r'' to Improvements, then the security attributable to thoseyOff--Site Streets ape Imprtoveme pe shall be remitted to Vail Associates; in addition, to the extent those Off-Site Streetsca is Improvements are completed by the Town Pe by the Town to third parties are less than the amount oftthe posted S ~~ osts incurred ty applicable thereto, then the remainder of that security will be returned to Vail Associates. requisite security will be posted in ar, escrow (with Land Title Guar The another escrow agent mutually satisfactory to the parties) and overned b ee Company, or instructions mutually made by the parties on reasonable terms hat are consrst~nt W,torow foregoing provisions. No certificates of occupancy, tem or ~ h the will be issued for the Core Site Project until Vail A ~ocra es rO h a com (le ed's")' required On-Site Streetscape Improvements, Off Site Streetscape Improvemens an the (") d the Lionshead Place Improvements or rt has posted or causes to be posted securit for remaining incomplete items with the Town (again by letter of credit or other reasonabl e acceptable financial device), in an amount equal to 12~% of the projected construction costs cf those remaining items. Vail Associates will w~ri°ant the On-Site Streetsca e Improvements, Off-Site Streetscape I:rnprovements, and the Lionshead PIaP Improvements for a ~-yew-period. ce b) The parties will act reasonably to coordinate the construction of the required On-Site Streetscape Improvements, Off-Site Streetscape Improvements, and the Lionshead Place Improvements with other public infrastructure construction ro'e being undertaken by the Town, so ]org as such coordination does not cause any mat cts enal delays in' the construction schedule for the On-Site Streetscape Improvements, Off-S' Improvements, and the Lionshead Place Imprcvem~nts and'or the Core Site Project ite matenal increases in related construction costs, or other material interference with the construction of the Off-Site Improvements or the Core Site Project. In any event, if an delays are incurred by Vail Associates in its construction schedule as a result of su y coordination, then the completionisecurity requirements under paragraph (a) above will be deferred fora commensurate period with respect to the On-Site Streetsc Improvements, Off-Site Streetscape Improvements ape Improvements that are delayed, and no C.O.s will be w-ithh ed as a resultshn addPlace when that security is required to be posted or the deferred construction is com lete ion, will be in amounts based on the construction values that would have been a li able d, it the delays not occurred (and the Town will bear any i,neremental costs overand had those construction values). above ~) The Town will be solely responsible for maintaining the Off-Site Streetscape Improvements. Vail Associates will be solely responsible for maintai ' On-Site Streetscape Improvements and the Lionshead Place Improvements~ng the Vatl MLTR~S9599.01148b462.4 5 Associates will provide separate heat source facilities for the snowmelt facilitie subsumed within the Town's maintenance obligations under the foregoing rovision s and the Town shall be solely responsible to maintain and operate those heat source facilities and bear the associated costs (including, without limitation, utilities char es . g ) b• 'Metropolitan Districts and Public Finance. a) The Town will permit and provide requisite approvals for action taken by Vail .Associates to form not more than three metropolitan districts wh boundaries will be inclusive of the Core Site Propem~ and ~,y other develo ment s ose P rtes .owned by Fail Associates or its corporate affiliates, and specifically excluding third- art interests (the "Metropolitan Districts"). The Metropolitan Districts ma unde P y Y rtake,. pursuant to agreement with Vail Associates, the construction and financing, of the Off- Site Streetscape Improvements, On-Site Streetscape Improvements, and the Lionsh Place Improvements as defined in Section above. The Metropolitan Districts' serv ad plans will specifically limit the Metropolitan Districts' powers to the construction ice financing of the Off-Site Streetscape Improvements, On-Site Streetscape Im rovemeand and the Lionshead Place Improvements and maintenance of the On-Site Streetscats, Improvements and the Lionshead Place Improvements. Pe b) If the Metropolitan Districts are formed and if the Metro olit Districts undertake the obligations of Vail Associates with respect to the Off ~ Streetscape Improvements, On-Site Streetscape Improvements, and the Lionshead Plarte Lmprovements, or portions thereof, the Authority will enter into an Inter ove Ce Agreement ("IG.4") with the Metropolitan Districts for the construction of the p ff ental Streetscape Improvements, On-Site Streetscape Improvements, and the Lionshead P Sete Improvements, or applicable portions thereof, and maintenance of the On_ ace Streetscape Improvements, and the Lionshead Place I-nprovement Stte s, or applicable portions thereof. The IG.A shall provide that the Authority shall pay to the Metro olit Districts amounts equal to the property taxes generated b P an vy imposed by the l~fetropolitan Districts and coIle,;ted by the Authority as tax inc eimlent funds. The I shall ter-zninate upon the expiration of the power of the Authority to utilize tax incremGA funds, ent ~• Road Impa_~ ct Fee. Vail .Associates has submitted to the Town and the Town has accepted a traffic study to evaluate the project trip generations produced b Core Site Project. As a condition to the issuance of any certificates of occu anc for the P y the Core Site Project, Vail Associates will be required to pay and~'or provide i - n kind consideration for a traffic impact fee to the Town in an amount equal to $5,000 multi lie by the number of trip generations attributable to the Core Site Project Burin the P d hour period, as established by the accepted traffic study which fee may be satis peak payments and/or credits in accordance with the Town's current revailin sty feed by policies, consistently applied, that are generally employed for development ro edards and Town. Any portion of the traffic impact fee paid in cash will be applied b pthe in the reasonable consultation with Vail Associates, to traffic and road system i prov menu a the two intersections of West Lionshead Circle with Frontage Road or to t transportation project that may be approved by Vail Associates in writing, any other Mli R'S9599.0114 86462.4 6 TIMBER RIDGE VILL ~ ~ ~ .. and AGE ~ . ~ ~ ~~ L -- ~ `: VAIL ASSOCIATES L'VC', " 1'~laster Lease THIS LEASE is made and entered into as of October 1" 2005 the "E Village Affordable Housing Corporation, a Colorado not-for- ro ( ffective Date"), by and between Timber Ridge ("Lessor") and The Vail Corporation, a Colorado corporation, d,b;'a Vail A p fit corporation dib.~a Timber Ridge Village Apartments Re_ c_ t_•tals ssociates, Inc. ("Lessee"). Lessor is the owner of the Timber Ridge ~'iilage Apartments located a 8]657, ("the Apartments"). Lessee employs large numbers of persons re-1280 Iv Frontage Road Vail, Colorad the Apartments, and desires to lease from the Lessor one hundred thi quiring housing of the t o sublet those units to certain of its employees. Lessor is willing to lease su YPe a~°rded by on the terms and conditions stated in this Lease. ~_nrne (139) of the Apartments in order to ch units to Lessee for such purpose, L-ease ] . Lease of Units. In consideration of the a Lease, Lessor ieases to Lessee, and Lessee takes and leases from Lessor P yment of the rent and the performance of the covenants in this and collectively the "Unit;") as identified on Exhibit A, attached hereto and incorporat d here n by then refe ech a "Unit", 2. Term. The .initial term nce. terminating on September 30 2007 of this Lease shall be two 2 mutually acceptable t~ e~ -=-'--' unless otherwise extended or termanated b menc~ng on October 1 y Lessor and Lessee in wrtOng on 3. Renewal O tion. Lessee shall have the option to renew this lease for a of this Lease (the "Option Period" to Lessor at least nine )• Lessee must exercise this option to renew b one (1) year period based on the terms October 1 ~ ~' (90) days prior to the ex iration of the initial term. -007 and terminate on S Y gtv~ng written notice of such election eptember 30 ~OOg, The Option Period shall commence on ~. Rent. Lessee shall a whether there is in effect a Sublea e with eespect to any or a tsun t; t ~ ~ , ("Rent"), without right of setoff and regardl,,s, o f h,. following monthly amounts: ~~~laster Lease dated effectoive Novee~ f ° e (9~) Units previously leased b tuber 1, 2003 and listed as numbers 5 throughr 139 onsExh bit A t to that certain $1,07.00 per Unit per month for the lease year beginning October, 1, 2005 remainder of the initial term and for the Option Period, if exercised, Rent attached hereto, $l, l 00.00 per month per Unit. and ending on September 30, 2006. For the for these ninety-rive (9~) Units shall be listed as numbers(])th~ouoe additional fo rtY-four (44) Units leased by Lessee from Lessor pursuant to this Leas and the Option Period, if exerci edExhibit A attached hereto, $1,100.00 per L'nit per month Burin e and . g the entire initial term (c) Lessor has the option to request that Lessee a advance of the regular due date, so long as Lessor provides twen ? _ equest. P Y one (]) month's rent up to two (2) months in ry (0) days advance written notice to Lessee of such ent for each Unit shall be due and payable as a single sum i dlendar month during the term of this Lease at the office at the A a n advance, on or before ]2:00 noon on the first da :ase for any partial month, the Rent for that month shall be prorated on r water, sewer and trash removal. P nments. In the event an Y of each a per diem basis. Rent shalJtinclude charges Page 1 ,~, reement. The ad-.iitional fom~-four (44) Units leased by fisted as numbers 1 through ~~ on Exhibit A attached hereto, satisfres t e CorYr liance with the Core Site Develo ment ~.----- nt entered into by the parties on 5. P ~rcemc Lessee from Lessor pursuant to this Lease and •t set f~,rth in Section 12 of that certain Core Site Develo ment Ao ' requiremer ;~ovember 8, ='00~• ~°- L;nits to it's bona fide employees essee's other subtenants ("Subtenants") for rental not greater, to Sublease of Units Permi''•ed• Lesseeosr Lll he entitled. to sublease ~` ~ substantive respects identical to essee, G. for terms as Lessee determines to be appropriate in an the amount of Kent payabl under this Lease, by written sublease rn during the term of their employment by ualifrcations and each case, th .roved by Lessor ("Subleases"), . ,. , , .,r Ytendine beyond the term of this Lease)tand subject to such reasonab e q ^ `Vrty.n Les:.or's standard tenant lease and apr ~ of the Apartments generally. Vl~ithout limiting its discretion tout in n~ we,.. e._ - oses vv-th respect tv ;~„ac t ,undrn , ee acknowledges that because other Apartments utilize tax exemp g restrictions as Lessor from timeLessme rmp the generality of the fore have been mandated. requirements for tenancy 'ovment. Upon the payment of Rent hetimes during the lease term andrduring any Fassesslon and uret En terms of this lease, Lessee and any and all Subtenants shall at al the sess a~:d enjoy .tlle leased Units without any disturbance from the Lessor cr of all uietl os Option Feriod, peaceably and q Y P from any other person claiming through the Lessor. Lessor and,'or its managing agent, presently Gorum Real t ether with the g. vtaintenance and_ R~'rs• Lessee shall notify n anv of the common areas and,'or individual Lnits, marntenance and repairs 'to the structural portions of the Apartments, og r common Estate Group: of all neces_arylumbing and plumbrng systems serer ~ ~ fiances on or about th doors, q P roof, heating systems, p e ui ment and app p;pes, any exterior window s, . Lessor shall be rr~sponsii"ice for cOendrtion at1lthe soleecostsandpexpe se efahs I1 existing power to the budding, resent or better c Lessee's or any Subtenar.. areas and the individual Lnrts, an attributable to and caused by. taking into The Apartments shall be maintained in P 1 as and when necessary, o maintenance• Lessor, unless any repairs or mainte:~ance are directy ~~ t acts or omissions. All repairs andrmaintenance shall be made prompt y, e air or maintenance and its impact to othef units within the bue ding' A,~ ne>>,gen or impact to Lessor's structural rntegrrty ual to the original work. Gn dafault account the circumstance and priority o t e P 11 be in quality and class at least eq of'the individual Units and common areas, Lessee may, but shall not be required to, make such such repairs, replacements and maintenance sha and deduct the expense thereof rorom~e?~ig nce Lessee of the Lessor in making such repa!~cerforthe LessorTS alccount,nce'essee's er a.ny Subtenant's g - 1 r~ aired rep3`.`s, rec':ace:°~°-nts or marr.__ ~ bur s,.:.a not be ..q a ;,,ch repairs, Lessor may, -t that repalr~ejarrse On efault of Lessee in making Rr.,,~ .n the e';;,.: ' ` e res onsible for such P ... ant and the expense ti-rereo shall constitute and be collectable as additional $11311 D P t,~ make such repairs for tl:e Lessee's a~.~o rent. aid by 8:00 a.m. on the f-fth day of the uon~h~ereafter untilspaidbn fubi.e~Leosee 9. Late Payment. Rents not p er day p rovided in Colorado law. o ual to 5 ;% of the total amount due plus ~5 O~cated) treble damages as p initial late charge eq. and (i1 ad} P orders berng required to pay Rent. rGVailing charge for Lessee's fees, shall pay the p ~ ' Lessee acknowledges that two returned checks will result in cash.or mon.. and b the terns of the Subleases shall cause 'n Covenants of Lessee and Subtenan±s. Lessee shall, Y 10. Cert~: . all Subtenants to agree to: le rules and regulations whi::h Lesser m~ nmzn s° ~~~ ding Those Mated a. comply with all reasonab provided, however, that to the e building or the general welfare and comfort o; the resid hissreference; protection of th attached hereto and incorporated herein by n Exhibit B to this lease, ,.rns c~nfiict with the terms herein, the terms of this Lease shalt control; o fire, Lessee, oss . ; ex;:: t that any such rules and Toga a.r~ wear excepte 'nits in as good order and ;.ondition as essee or the S btenant)eordordinary base . b. keep th` L the negligence of 1- Ali once, carelessness, accrdent or a ) or inevitable accident (except when caused by wear meaning wear which occurs without Lessee's or Subtenants' nea g nit nor assign this Lease or any (ordinary exce t as otherwise perrrrltted in this Lease, to sublet no part of a c. P Sublease without the express prior written consent of Lessor; Pose 2 ' d. neither hold nor attempt to hold Lessor or its a~~ > gents or sen-~ice personnel liable fur any injun_- or damage to person or property either proximate or remote, arising from the acts of Lessee, any Subtena any Unit, any guest of any such resident, or of any owners or occupants of ad~oinin iamage to person or property was a result of Lessor's negligence; nt, any resident cf J g property, unless such injury or e. allow Lessor or any of its employees to enter any unit at any time to make emergency re air upon reasonable notice to Lessee and the affected Subtenants, to inspect the L'nit or, within 30 days rior to the term of this Lease, to show the Units to prospective tenants. P s, or, P the end of 11. Subordination of Lease. This Lease and each Sublease shall be subordinate to the lien of indebtedness, and all indebtedness which may be made a lien on the remises in the fixture r o ,.,, _ , , terms of the Subleases shall cause each Subtenant to agree to) execute and delitier such Fun any existing and ~..s~..e ,rial~ hand by the instruments subordinating this Lease to the lien of any such indebtedness as may be desired b the Lessor hereby appo,nts (and by the terms of the Subleases shall cause each Subtena. her instrument or her attorney-in-fact to execute any such instrument on behalf of the Lessee and a y holder thereof, and coupled with an interest and irrevocable, provided that Lessor has first re ues nt to appoint) Lessor as its, his or and Lessee has failed to do so within seven days. Il Subtenants, such interest being q fed Lessee to execute such an instrument 12. Provision of utilities. Lessor shall arrange for provision to the units of electricity cable television service, water, sewer and trash removal. Lessor shall be solely responsible for the water, sewer and trash removal. Lessee is solely responsible for the cost of ele 'connection to basic be solely responsible for activating the cable service in Subtenant's name and for the cost and e cost expense of service fees. In the event of excessive use or waste of any such utili ctricity. The individual Subtenants shall ty services provided to any Unit, Lessor may at its option cause such services to be separately metered and if it does so Lessee ;hall pay the metered a xpense of all cable amounts, "Utility Charges"). Lessor shall furnish heat to the units during the usual heating season, and sue be borne by Lessee as electricity costs. Lessor shall not be liable for any claim of damages, abate mount monthly (such in case of the interruption of utility or other services to the units occasioned by accident fat h costs shall ether cause whatsoever beyond the control of Lessor. or charge of any kind lure. of power supply or any 13. Parkin. Lessee shall be entitled to all of the parking spaces at the Apartments exce currently occupied by tenants who are unaffiliated with Lessee ("non-Lessee tenants" as of c Notwithstanding the foregoing, if Lessor leases additional units to other non-Lessee tenant pt for those spaces right to the parking ;paces at a rate of one space per newly leased unit for the ) the date o~ this Lease. however, that Lessee's interest ir, parking spaces at the Apartments shall never be s° Lessee shall relinquish its benefit of the incoming tenants; provided, Leased by Lessee, or one hundred thirty-nine (l39) spaces. less than one parking space per unit 14. Damage C)eoosi~. Upon execution of this Lease, Lessee shall submit to Lessor amount of $1~2,900.U0 as a "Damage Deposit" for the 139 units leased to Lessee by Lessor un a!I outstanding security letters by and between the parties pertaining to the Apartments i a security letter in the execution of this Lease shall be rendered nu(!, void and unenforceable uROn success der this Lease. Any and Damage Deposit and,~or other deposits paid by the Subtenants to Lessee shall be refunde n existence at the time of to such Subtenants, or the Lessee if Lessee was the pa}~er thereof, within si ful execution of this Lease. An d by Lessee, in whole or in party Subleases, provided that: (a) all provisions and conditions of their respective Subleases have been co such Subtenants have maintained and left the Units occupied b the xty days after termination of their respective were entered by Lessee, loss by fire, or inevitable accident (except when caused by the ne mpl~ed with; (b) y min good order and condition as when the same Subtenant) or ordinary wear excepted (ordinary wear meaning wear which occurs without Lease ' neefigence, carelessness, accident or abuse); (c) the affected units have been vac gl~gence of Lessee or the to Lessor. THE DAMAGE DEPOSIT CA1~IVOT BE APPLIED TO THE RENT es or Subtenants' THIS LEASE OR ANY SUBLEASE BY LESSEE OR ,q~;y SL.B ated, and all keys have been returned OR UTILITY CHARGES L;`'DER {epasits may, but are not required to be, deposited into an interest-bear nE acount b amage Deposits and,%or an amounts deposited in any such account shall be the property solely of Lessor. The relevant Dama e y other y Lessor. Interest, if any, earned on ^ther deposits are subject to deduction or forfeiture for unpaid rent, late payments,, returned check :nit, its contents or the common areas, smoke or stain removal, unreturned kevs, admini g Deposit and all _~Il~ction costs and cleaning charges. Lessor shall use the .'~1ove-in and Conditio charges, damage to a ~hibit C and incorporated herein by this reference, in evaluating dama es t strative charges, reletting fees, curity letter to Lessee within sixty (60) days after the expiration or fermi n Form, attached to this Lease as g o each Unit. Lessor shall return said nation of this Lease. Page 3 1 ~. Hc~ldint; Cover. If after the expiration of this od ficateoneof~h snLeasctextendi g the t rm of this Lease or Units, with the permission of Lessor but without written m modifi ing the amount of Rent, such possession shall not coants~shall be ubtc:nantlss f the affected Un tspfrom month ~m of this Lease, and Lessee shall be a tenant, and any Subte ual to 1 ~0° o of the monthly Rent and Ltileties moth at a monthly Rent in Utilities Charge pa}able in advance, eq Charge payable under this Lease for the last.month F the ego n~i if Lessee or an}oSubtenants ~J~,::~Ci sinlpossz sign of tern; and conditions of th;s Lease. ~;otw~~,:y~anding ...e for ~ _ , a;.,,~ L;;,its after the expiration of this Lease, and Lesseeenat's eos ession of the affected Units shalclnbe monfhito negotiations to enter into a new Lease, Lessee's or the Subt p month at a monthly Pert equal to the rent c; arged for the previous lease year and subject to the terms and conditions of this Lease. 16. De_ f?ult• If Lessee shall be in arrears in the' paco enantsaor• agreements on RestLease~ to beaperfonned by charges or any ponies thereof, or in default of any of the f~ -~-,; ' of tCr. r ; 0; days after Lessor ha:: ° •'en ~ *.ter. notice thereof, i..,_.,: _, a::,. such a~:::atilt ~haii be ur.~~orrected ~r :: , ;:.s,-:•: _~r~t, >r,all rna:;c ar.~. _,s;,_-anent fer ~n~ oe-.~~ir. ,f its ~re~di, _. ,, sha: ~e ur.shle to pay ~;~ o: ~ .,e:see sha}1 .,eco:~= _.. °_ ..ations as they bCCOmB due, or if Lessee shall t..e o~ there s ainsolvency laws of any`Oiller )ufisd c Pon, *t,en and ir; for relief under the federal bankruptcy laws or the bankruptcy those events Lessor may reenter and take possession o~ ndz his-Leasehe If Lessor elecu oure~ente~ the Un is o1r take arrears of rent or Utility Charges or other sums due ~~ without terminating this Lease, terminate all ar any of the possessio^ :hereof pursuant to legal proceedings, Lessor ma, , Subleases :o pav, and receive and collect d~' alllbe ~ ns`.ruedcas a selection by Les or to berm irate thisuLease or a y taking possess-c~n of any Units by Lesser sh , ,-ty da s advance written Sublease unless it gi~r-s Lessee and, in theosyes es anblUnrts without termsnating the~releva t3Subleases, or terminates notice of such a terminate°n. It' Lesser rep 1 r~ T Lessee shall pay to Lessor (i) the Rant and Utility Char_res and of er any Subleases and relets the aflec.~d Lnits, tints that would have been payable to Lessor under this Lea leases and r roceedssfrom r lertsnghof tl:iesLhn,~•~ f t amo occurred, less (ii) the ret proceeds, if any, of any untermcnated Su p which Subleases have been terminated, after deductih g la~emain 1 able to Lessee for damage ~in amount equal! to the 'this and/or reletting. If this Lease is terminated, Lessee s Rent and Utiiiry Charges and other amou~ntf p oce 1~5 nder Y i'•?m aRyosubsequ!an,.`relct'i,`gtor any Sub zases 3ccepte=? Lease hac not ~~e=: t=m'=i"ated, Ivss t:,e ,.e_ .. _ Lnis, alter dedt:ctin` ail ' Subtenants o~ _'~- of -- ~~ ~ ~:,, c ; Lesso: - c.. _ .;t !~._ ~-s 'ro`il _e~SC`r tc an' r•~i::.;.•.;.- d ;, s to Lessor rn~nt~ly, on chi: days or: which such surr,s cx~,:nses~a°::.,cia:e~ ther~_.~,t:~. ~_:asec s:~._il p~iy . ~~:~ ~..::c_..~ otherwise would have been payable. The rights and remedies stated in this Section are cumulative, and do not lima or impair tiny other right or remedy at law or in equity. 17. C~sualri Loss. If any of the Units are reuc~h rzdains ~nraf tbablfd°n~aC1 not be sdubstantiaLy cobvplered ~ ~th n cap=uaity anc' of in Lessor's re~as~~na'J!e d..terminatior. s p thirty days ::ft~r `-he occurrence of such casua}t,-~, ther, (i) ties Lease shall termir,a*.e only ss to *.he a`;e.:ed Units a-~1 a!1 d U,~its shall be payable with respect to the per.:`icd ending up~r: t'..: date of such R_nt and Ltility Charges for the aT~e~._ 1/essor shall thereafter offer Lessee alternative units in substit~~.ion for tl-,e L. s a`ecte.i y in;ury or damage, and (ii) •;~~ch casualty' loss, and Lessee shall accept such alternativare dama ed or destrcr ~d by fir 'tor other casualty and Less e to Lessee. I; any ;;f the Units are rendered untenable or g determines to rebuild or repair such Units, .and if in Lessorasual~1Les~or shall do sosw thereasonaJle del gence and this Char es for the completed within thirty days after the o~e.ur;-ence of such c ry, Lease and the Subleases of the affected units sereof accoedinfg to the sat uretand t~xt Rt of ana dama a whi h has '~-~en of:. ~ted Units (or must and proportionate pert th sus ::in~d;~ sh:=11 b? ab~`t•=-' until the affected Ur.as F~1'(C~ V~ rear ~n of tire, mold,sor ay ' the: ~c4:: a1ty,~,Leh.sef Jma~,'.' i~ s U;c _~:e;~- :. ny cf ,:.z ~. nits are rer.:...;red ~r.~er:s..._ sole discretion, t::rrr:inate this Lease with regard to the affected units. 1 g. Attorney' Fees. In the event of any dispv~elanisi a n nesuch dispute shall beeentitled,tnntaddit on tot other payment of any sums ansing under this Lease,xhe pre g p damages or costs, to receive reasonable attorneys' fees, costs and expenses from the other party. i o. ]r < arance. (a) 1_essors?~isurance. During the term of this Lease, Lessor shall provide and keep in force: i~~juD~, property dama e, (-1 Comprehensive general liability insurance to include covera e fo 'iabili S death and personal injury (employee and contractual liability exclusions ry (including coverage for the contractual liabili g r bodily this Lease); and broad form ro ry of Lessor for performance of the indemnification )~ `ontractual P perty damage, with limits of not less than One ,ylillion Dollars occurrence combined single Limit for bodily injury Provisions of (52,000,000.00) aggregate for bodily in•u Properry• damage and personal in"u (51'000,000.00) ea,:h (units not less than Five tililiion Dollars J ~ and property dama e. J ry' and Two Million .Dollars g .Lessor shall also obtain an umbrella (5,000,000.00) over the primary policy, policy with provided by Lessor, (") PrePert}' insurance covering the Building and all contents t viii' he, ern which are mischief, sprinkles damage, boilers and ren-ta) los w thnrespec~ for hz pnsurance for all risks, vandalism and - Any -nsurance provided for in this Section 1' a ropem. nal-c-ous insurance, covering additional items or locations ortinsuredsmaintained by Pages of the insurance policies required herein to Lessee upon execution of means of a policy or policies of blanket Lessor shall provide cerciticates and,'or the declaration this Master Lease. Lessee, any (b) Lessee acknowledges that Lessor's insurance does not cover t Subtenants, or any of their guests. Lessee shall advise Subtenants to u to personal property due to fire, theft, water damage and other unfortunat he Personal ro p rchase insurance covera e Pew °f appropriate insurance coverage. g for Toss e events, liability coverage, and other 20. Indemnification. Lessor will indemnify Lessee and save it actions, damages, liability and expense in connection with loss of fife, erson , from or out of anv eccun•ence in, u harmless from and against an~ pon er at the building and common area clot the oc cupa do mow y and all claims, Lessor of the building and common areas er an • ae to prope,-tv arising emission of Lessor its ag , y Part thereof, which is occasioned wholly or in part by ents employees, contractors, licensees o and use by damage is not attributable to Lessee's ~ , Duests or invitees; provided, however, that an 1 cross negligence or misconduct. Y anY act ar Y oss or -' 1; Successors and Assi ns, This Lease shall be binding on the Artie assigns. Except as expressly per,•nitted b Lease or sublet any of the Units without the priorewritteneconse toof L- P sand their permitted succe gn any of its rim ssors and withheld. Any such assignment of sublease without such prior written cor,se ~hts or obligations under this essor, such consent not to be unreasonably 27' ' ~-----"'at-~?n. Either pa nt shall be void. advance written notice to Lessor at the ddress pro~deden S`..~Ii0ns2 with or without cause b °~ 3 herein. Y giv-ng sixty (60j days '3 Nit-"-' AnY communication between Lessee and Lessor shall sufficiently given if delivered personally to the Lessee or Lesser cr an certified or registered United Stat;;s mail, addressed at the following ad be in writing and shall be deemed y of their employees or agent,, or if sent by dresses: If to Lessor: Timber Ridge Affordable Housing Corporation If to lessee: ~~. S. Frontage Road We;t Vail ,associates, Inc. Vail, CO 81657 P.O. Box ~ ~'ai1> CO 8168 Attn: Rick Smith Cc: Emily Schey, Esq., Lemal Box 88 With a copy to: With a copy to: The Town of Vail %~ S. Frontayae Road Corum Real Estate Group Vail, CO 8 i 657 525 ] DTC Parkway Attn: ,Matt ,Aire and Nina Timm Greenwood Vi1)a e Attn: Rex Gambrelh CO 80111 Page 5 abet, abolish, or add to anv of the _.t. '~1iscellaneous. Lessor rztains the unrestricted ribht to change:. nreasonably with Lessee's or ma seem best to Lessor, and to dispose of or teinterferetuer portion of the huildin<ss ~n appurtenances of the Lntts, a~ y which the l~nits are located as Lessor elects, pro~'ided that doing so does no essee has relied solely on the statements containe~,i he Le sot e~:pre'ssed oreimplizd.ro Subtenants' rights hereunder. L modi?led except as agreed in writin~u. by Le~aoi aid ~ezements of L ssee shal~be deemed or taken to be a ~tiai`er of any any breach or any one or more of t7t „o e F:. succeeding ;,r other breach or any ccn:ir.uation o` su`h bCe"~` ctively executed this Lease as of the date flrt set T?` ~;v1T'tiESS Vb'HEREOF, LESSOF ar~d LESSEE ha`•e respe fo,^.h abo~ e. LESSOjtt Timber Ridge ti'illage Affordable Housing Corporation dib, .. T;m:,er F.:dge ~~iilage A;~-.,-tments By: Stanley B. Zemler. '`ame: ___ Title: Ares=dent November I0, 200 Date: P.TTEST : j 'i~ ~ . Ey ~ c: __------ i~lLia Ti-.~'., See=2La'.~y LESSEE. The Fail Corporation, a Culorado corporation dib/a `;;ei',Associ 3~s, Inc. I ` / i~~~ By: .,~ y~ , Name: 7':! ~K" S~r'i~ ~~ ~ Title: ~~ t ` v r C/1/ Date: ~ ) ~ S/ e' ;~.. ~~,~.~~ o d o....or'~(~ , Approved ei to Form: Vail Reno esal De .~tmeat ;Nome: '' ,~:{tiT.3-- Drte: ~t 1 0~ --- EXHIBIT A ' (Attached to and f orming part of:~lastcr [,ease betwze The Vail Cor orati ' n p on, d, b!a Vail Associates, Inc. and Timber Ridge Aff d or able Housin g Corporation, dibra Timber Rid The followin ge Villa e A g Partments) is li g a st of the I39 units that Vail A ssociates Inc: will be occu i py ng accordin; to the Lease: t_nit ~ B-1 2 L-nit A-1 L t g_2 3 B-3 %9 3 46 A-2 y,1 ~ L_nit , 33 P-~ 4 B-4 ~~ A'~ 9l L_5 ]'4 P-6 5 B_5 A-6 9-, L-6 135 P-7 6 B-6 SQ A"7 93 L-8 I, 6 ~ P-3 ~ B-7 A-8 94 ~1 L-9 1~7 P-9 8 B_8 ~ A-:0 95 138 P-] 1 9 B-9 ~~ A-1~t 96 L_1 ~ ]~9 P-]2 10 B-IO 54 A-1L 97 L-1, ,1 B 1? B - I2 56 C-4 99 L-14 13 B-]3 ~7 C-5 Iu0 L-IS ]4 B-14 -8 C-6 1G1 L-16 1~ B-i5 sy D'I 1C2 L-17 i 6 B-16 60 D_? I r~3 i~.~-3 i 7 B-l7 61 U-3 104 I~f-4 ] 8 B- ] 8 6 ~ D-~ 105 ,'v1-6 19 C_ 1 63 D-5 1 G5 ~V1-7 20 M- I S ~ D-O 107 1~1-8 6- 22 , D 9 1 D I7 2 I ~ Iv1-- 6b 10 0 ~ D- l 8 ] i 0 :1,1-1 1 6 7 ~_ i ~~ iJ-3 H-1 63 D-l 2 ill M-12 I12 26 H-2 69 M-13 -,0 D-13 1 13 ~4- I a 2 . 1-1-3 -,1 D-14 ! 14 N- 7 s H-,~ n-1 s 11 s ^z 29 H-~ D-16 I16 N_3 73 3G H 6 G-2 i 17 ~-4 ~ 31 1-4 G-4 118 - ti 5 ''- J- I - ~ ~ G-~ l 19 76 O-2 33 J-2 77 G-6 I ~0 0 3 34 J_3 3~ i8 1-1 121 O-4 I-2 J-4 36 ] 22 O-~ 79 1-3 J-~ 37 123 O-6 80 f-6 J-6 8 0l l24 O-7 1-7 J-7 79 ~ 12~ I-8 8 J-8 125 O10 3 a j J 0 34 1j10 128 0-11 J 1 8~ 0-12 42 1-I 1 1-I ] 1, 86 9 P-l 44 P-10 L-' 131 P 3 88 L-.. 132 P-4 Page 7 EXHIBIT. B (attached to and forming part of :Master Lease between The Vail Corporation, d.."b;a Vail Associates, Inc. and Timber Ridge Affordable Nousinga~~p rts)~on, dlb,'a Timber t2idge Village Ap RliLES A'1D REGL''LATIONS TD.~FA Rim,-E nett Autry "~ tc~cuartora toss ~noermuat a vII.I.AG~ APART R~.F~ AND REGULAI70NS ~-AS8 ADDH~InUM B The Owncs of the Timber Ridgy Vlllaee APu~teatt incgud all~aPartnsml~oYmout of the Timber Ridge V7i~lage Aparmteau dopttd the follovia~ Rttks ~ 1~uLtinrts -~ sad the common C'Commuaityry. 7b way.. . ~~ R~~laad ID~6' and ! (~ ~ ~~0i0) 8~. mermbort ottemnra farat'J),, ~~, R ~~ Cca~m Regultiorda to ~ dlatd daahw m rasure the h ~ o~ a~ P~meo cry ~• 11° P~ that obfecti,~q the Lath muss havo the ooc~.apop of ~ I) Use. The Comm, chaLt 1k ~ =~ymtction w~ ~ ~i~,:al u ~N b ~ a~~,p~°~e sad for servicd, a~~; sad ur ~' portico of the ~a of mY _70p'°~ou is sea W of5ce te~y rand~~ablo bcuiaeas~ectar' ~°~ of tbo ~ testa P~cetar or as darted m ~ unit or ~ ao the Pro A Y ~'n~ desiQaated !) Commou,rrr~, Common arsac Reaideazot- ,•,~y Gommon side ~eCa~es a1Dt4' p~~6 ~ aidnva,'!ea sad si'Y O~P~pOje than ' A'~G dnvewaY~ ~aaacaa err P~a+6ewaya sba11 not bye o~6~ua}~ ~ ~ ~~'Y P, esideai shall place to and egrewa t3vm tlra colts, War shall cocscar of the ~ os remove ~ dte Coenmttaip. 8'otmda PIS ~y~ as P~' areas. No Ladlord or dte Landlord's daaigctasod Mama et: ~paoa A'ithotc fhe prior S ir) d~m+] watrr faucets sad elactriael outlets locoed is common hallwa griated ma.nteaaace persoaaed sad ttre not to be used Ya ara for the acehuive ust of by Reaidaiots of the Coarmuaity. 2) inewaace obraia~~ shall be done wiYhlrt the Community witJch ~ ~Y portico of the oommtmity err which might oau~ is as incraeae is the Premiums of 3) Willful orN eaace[Iatioa of such ias:rrsaeo. egllgent Acts, la the event that the Commuairy because of the willful or IIet~Ycrtt acs;~ce' repair or otlter work is 1e4~ w fthao Bach wont or csusc the same lb be Pafar'med at ~ ofaetion by as Res ~: coos pyY,aeat th soh ooptpant s eesd sad y ~0°~ t~ Iaodlord Wray perforn~ , given ten ~' ~am"~ at~oh Reaidan; pmvfde use and may stroke ~ as (~ ~ data prior notice with' ~ °~Fa in the even: ofan emir ea seasrnaat to m which to p~•o~ ~, ~t~~ maiateaaa«, B cy, such Rasuteat shall be 4) Violatfoa of the I.aw. Nubia roles or work, ordinaa:q ~8liiarion. pasrit ~ v~ be done withla the Comm~ty w)>j~ palms be in viofatlon of say statute, *vlq 5} Pets_ yo '~' lmposod nqulrmaent of say Eot'ernmamai body. Pecs an ,flowed, even tetaporarily, ap Landlord's prior wtlttea author}zadon. No vaauthorizadpets ~ fed 5~ ~~m' without Commun'ry, ~Y unx Apartment Co Landlord or its II~o~Od Pet may be removed i}am the ~ aparmserri or any part of the RwidenYs • ~~' v°lation of the foregouig by the Reaidertt or Rea~~ °OdOe a~ "d"'hom 1ia611hy to dte mowledge or peosn2astoa, will eabjoct Rm}dent to a guests or occupants, with or without remedies of the Lease, penalty ofS20.00 r Pe dny, damages, eviction and other 6) TraaL and Undp(ttly IIaee. U.ttsidr The containers arr located edjaocrrr to ~e~~ cartttiners have been provided oa ~e snuff be brokers-d ?arkiag areas, Ali garioage shall be community, , ~+'n, and disposed of is rho garbage can P~ m seated plastic proP~ry. A~ over-else iteau that ~s provi3ad. Tlo aa,sh sLa11 be brou • ~; aI1 boxes Manager will arrsrrg ~ for :ke eannoi be canveaie:,t1Y placed is Ehe dam gm in from oil.he Comoros Areal a ~~ Rosi P~regnln a shall be aaed e. 8 deaf sad bill the additicaul special Plek-up. rther for norage. or Personal lNOPu~ or far Qua ~~ to the Reaidont No 7) 1°attos and Dec ping of ba Part of the Ira. No Ftrsident shall rto ~ Sq Wash or wasto. h~utdoor furniture). No rugs or arbor a e~ir7s ~ y~ use ~ items or raatetial on sa S No addmraLJ lighting shall ~ . from window Y PaL'o or deck (ether installed on any patio err deck. s. patios or deck9 by besting or 8) Gtiila. No char mm~o~a aza i~ftted ~ the Commuajy, t;rrill Pies have bcea eo locations on the areas. G:s ~ are pdrmitted nstrucYnd for Your use at ccveral 9) Paridng Area. ,pscy a move ia, the real P~'Cnent trail is provided whh ooe dear ran ohtaia one p~arkiaS pass. No :~rklaji sPace• Upon eheekin sGali be stored or perked wirhjp the C commereiaj vehicle, no trucks g into the offraq prior to ut6cor homes, motor coaches. Loses, sad ~r~' TnrrJd sad commetti and no recr'eatiottal vehicles trailers of an Phu socks ~ `'a~~'u shaiI inclvdq but ~ limited to, Pefmit, or in a d~gna~ted ~icle parked is as urn sot d ~at~~r ~h a ~1sr accessories, camping *~' e;s or option of the Manager. ~`' m' without proper rcgiauar;o~ m be chick, or wltltora pfOPh' ~wkrn a3' towed at the velilcle comer's ea~enge at the r) Dosing the wjnmr mo~oths a!1 vehlcita shall be moved every Zq ~~ ~ offer to prevear rbe btn7dvp of ice or snow betweca veh;dea. permit S°~'rTmoval sad to •tat stut.r~ ~ RT~t1t1aT~ t=om ADDa?1Dt.9.t D u) Vehicles shall sot be driven on the krona or in eay ats:a other theses parking areas smd dnvewsgs- Uouead, IInngtctared or Abandoned Vehielaa. No iaoperativa, unused, or ~Q°0d vOhrdB l 0) 'Dm~eliot) shall be scared. parked, maiataiited or kept upon `uY p~ of the t;omrat:nity. Dmeveh~L witltoui a proper say sctatoobilo, trur3r, aoto-=7rlo, motcabCae. bow truka> a>apot, howx~•traLer. ar similar P~y~ permit ~twlticb bat ao: beao drnea ttnjar hs own praptrlalom m' has °°= hem waved orttsida of the r•,x,mrrtmiry fa a period of one (l) taonth. j>melid vehleJeta shell bs snttject to tic3cari.~g andlar toW+i3g. u the ~.eua e slx vahicle's onvna a:a provided heroin sad by appL{eabk Itw. 11) Aatamotfve'~Saintraanee- No ,,.r,•flodvo maintaoaa~e, truchaalcal, body of ettgmD ~. overhmlmg or s:m filar a~ttamotive e*_peir work si;aU be pafotmed iii anY pottlao of the Camrnunity. Only tn1II.'ro+M ur.kup oa personal vehicles shall be permitsed sva$ a5 w~nZ. r•~ spacif-eau; esccltsdia$ waabiag. ot7 cltaaba or orae up. 12) lmpro~ememb. No ea3ecior te{erslon or other atrttantta of any sort shall be placed, atk~ ~ maiLtained upon any po: tioa of the commas arras. No wozfc of a»y kind shall bo dame upon the adnrior building anW, upon the Lallwaye or upon the common ems. i) No Rrsid~t shall install wiring ~ clectsieal °r tdepbana inatsllatlon of for'uny other propose, nor shaII any s_ levitim or raGic ~:tzttnaa, maclris;as, x sir eonditl:.a:nd coots ha iasnlled on 'moo exsesor of the attaaent :...,tms.'ty, nor s:.a:: say stroller ircPro'`'emerr.:sat?tc:^.:aa .:trough the >.=;1s :.: ~ roof of the ap oe Ansttueted witt:~ut ~ p~ ~ written approval of the iaadlord. 1'3) Right of ]Entry. Thm Lmmdlad through ><s dolt' atr>botized Managsr shall ~aithfn ~ ~~ ~~y emergency affect t7oo health ori6iaagrtg in or threitaxring a emit. Qe In the cane «~to estthersrla ~mdiataly w+iRhout requert. or well-being of other Rasidasrts or the Apa,°tmeats. i) Upon regtrost; R;esidertu shall pormlt anh;1' into a unit: £or tht purpose of perfermit~ routine iaspactions and nave°sm}+ iusLalIation, albersiicn. •ar repairs to the apartment Su~cir routines roquesta shrill be made in advanx far entry ai slime coaveniaoi to the Itaeidemt 14) Kcra sad LocJct_ At rho +drae cf move-ln tech R.asident b pro'+i'ded a lush' to hies trait F.•ach lock is keyed to smarter e. hicit fa coatreiled by the Maaeger. Arno time dt:ting the :oau-ai' shall ~e R;.sideat r~ioey rho lock or place additional locks upon any of the doors of the apartment. If a limy is lost it may be replaced far a foe of S25.f10. At the termiaarioa of the lease all keys to the apartment wait shall be rettaned to the blaaager. I S) Cbtldron. C}igdrm shall be supervised by as adilt whew in tb~ eommon~areas~bbohall not pLy is any parking :real, cs~?orts• hallways, stairwells. iatmdry raos,9, dayctsra p ygrotmd i) 7'ltor•c !8 8:00 p-m. eurf.+• for bicycles ridisrE. Patents of childtem viaLsting this aafow will be charged 525.00 per child per iacidea~ 1 fi j Ezterior Dscorafioa. No Itesldent shall horses tSraal. drop from or affix'to ~" whrdaw, door or coraaton area any :s;:a or att~ item wi'uo:t: the a,^:nr writes a?.1-ov_l of the Ia:,.dlord. Wmdc~.;• rovetings rx3cma visihk frnm the .;;;pion xc<ms zm::st 5e taseful ~d III au:ar;..ac~ with fhe goals sot for the ap •oaraaae of toe C.ammtraity. 1; ; ~tezior'r;statzaanoo- Tna Rtaident mi11 :ompZl' ~ sD polzeo, fhe amd sar~tary rogt,lauans .mposed by. say mvzticipal, stage end federal authority either now In furse ~ ~a~ uodtucts~ or drive nails. tacks cu sc.-swa irrampor ar qugtioaablo purposes whs>tsce~ ~> and ~` as ~ without into the wa1'.s, ceiling? at doors or woodwork of rise apartment nor to make any addition.[ ramie ?~ B ~ r~ and . f.:. obtaining the writian oonsc4t of the l.tsr:dlrsrd; to keep the apartment sad every part sur>ita7 eonditioa erd appearance, free from dirt, fslth. `ra.''ta •;r say infLsrnmable of dangoteua V-:sterial, also 5'et from objcctioaable adorn ~~ ~ throw of permit aaythutg w :" ti:.-awa fiat` the ssvrratant. i) The ~n aa9 repiacemer. of fattriot ll~t bulbs~~ eruibiiity of tiro Resident. Snch replscomant is to bt node wii2t a product of simile :yp0. ~n1hY ii) Interior walls may be dec;ota~d w gib pitxtaes, posters ar~d similar ItSh'--wei8ht snaten+rls• ~Y ~dard piorire hoofs=. designed to taiuae mfnirnum damage to sralia are b be rued. L-t no instance may molly oohs or wall anchors of any typo be used. 18) Any damage caused to an apss'arreat unit by a ltesideat will be repaired at tits Itesideht's expense. g) L^undrl Faculty. Per yeses eonveafena lntradry 6et?r~^s are bated la the main office building, on both the fir st and sxond floors. The laundry~s~ ~ m~~esyo amayx~ t'~e ~.a7tager.~ clean as Yw would tiles ro itnd it If yo:t encounter say difficulty 20) 1 `lolse and N TBR ~aES MtD aPtMw71t?rs 1bAS~ np~.tDtAd Qssaaca. Residents aha]J re pcrsaa s~ shout or operate audio exles~m~ ~~~.o~f ~tseigbbeza. Ia ao av®t shall auy person, P4Y musical aPcrtraeat trait particularly brxweael the ho Ve noise which may bo heard outride that trra of 16:00 p.m, sad E:00 am. 21) RaporOar Defid,sopsy. Any Reaidestt «bo obse+ties a mainttmrencti should ~~ it to the °Opd'UOq w~dreo ~ common areas whfch should ba reported ~~~, co ~M~ ~~8 office houra.n,~, ~ditioa wtuch requirrs em g~ y aeon haatittg, eiectriciry, a ubk 2~ is cxPaieaced Within ~ ofthe fiunished Manager. If tha e:onditonu obaarved agar-hotua a can ~ deat~s ~ tt should be r ~~ savie~ (plumbing, relay the me,~y~, t'epaRed by phone m the o1~ce~And tmmediat+cly to the aaswroriag service will ?_~} Paramtal Properc7•, .{ny penottal be dia'pased of trY the Landlord ar i prop~Y which Js loft in aaY cammoc area wi11 bo pratumed ab~~ ~ may shar7 ¢ be 1lebk for, any Ines or dam ~~ ai no liability ca the Iaadlotei TDe I.wdlord sae t4 u'4olts stostd is arty aommoa araa- tsataaos oo liability for, nor b} Addltloa~ gam. ~ Landlord may Ib'~ulyeta suds a Laadlond may deem necessary for the oaf ~~ ^de~ and regulctiony from time tb time u the cry, care, cleanliness and mainta~~ of the CommtmJty. 24) Rula Vlo4tions. ATj violation of rho Rulex and Ro Striation maY be coasidorrd a violation of rfre ie2ae. 25) iKanager/t,wk= OEtles. Tne. Office botn~s are: Monday throe Fttd Sunday eloaod. Tho Timber Ridges ~t~a ~ reached 24 beura ~ '~'• 8:00 a,tn. to 5:00 p.m, Saturday and I~ ~' ~ (970) 476-6759. The Mailing Address !s: Timber Ridge V1Iage Ap~aas 1280 N FroaLzge ~ ~y Vail, CO 81657 Si~attue . Date $ignatu:o 7?ate $igaattr0 Dote Sigrratute Date Si6natZn'e of X'lanagor/Otvner -- %ete EmVIP' OL YEE i°I®USll~ta WIIdTEI~ ~0~°~-~~u~ RULE~IREGUL.ATIOI~iS lion of telephone. Cable is included in the rent at all prope;~ties excel 1) UTILITIES The Ian rovides all utilities with the exc..p T:mber Ridge. 2) INVENTORY AND INITIAL iNSPECTION " ct th,a unii within 72 hours of cornmencemenc~ant an~ Land oTd that Te~ant completed said Ter,art shad ins,~a as to Lanu,,or it shad be agreed by T locum°ntati~on of damag.. F-und all iten-,s to oe sats~actory and free o.f d e noteailowed in uni swat any t me moved orn any inspection and •~ Sleepe, sofas a Vail/FZaver Creek Housing unit at any time. 3) RESIDENT RESPONSIBILITY oes on within their unit. Tenants are responsible for the actlans cf Ail ter.an~s within a unit are responsible for what g An der„sge or illegal activity that occurs in eat utn {r which a specific individual does not take their guests or visitors. Y responsibility will be considered the responsibility of all r~;sidents o ~ ~ way ail tenants will each pay a ~~ ~to~"tor from the cell ng cr tampers with the detector m any t to s~ Hal the a~' aear• 4) FIRE DETECTION d., .... +~'lait outside for sacun y 9 If T_ . ~-~ , r , P v- ~a~e the buildin i- j ~:ar ~..e ra.n afarrr yeas.. .,~~..- ,;s r en; the sprinklers. If a spr,nkler i,ead is released due to tenant s ac~ians, ~enan~ wi{l pay cr a, Go nog nan5 a.1y .'.-r' costs associated vv~th damages tc the affected ar°a. 5) PETS Val!/Beaver Creek Housing at any time. Please inform all visitors that they must leave their Nc pets are allowed an "~ fi If a pet is discovered, there vrill be a $5g pet charge and pes at home.ePG`e ~ f-iousa~9 ~e tat Agreem nt rray be terminated. the Vai(/Sea a mi, gar, illegal drugs, narcotics, drug paraphernalia, controlled substances, guns, 6) FIf2EARN'4S. DRCf'.~S A~1D ALCOHOL The use er possession cf alcohol by P ^g P P '~Y 'ves bb ar paintball guns, swords, etc, while ° ~o ate law a forcement ages y and eau ~~ re~u' in kegs, weapons, kn~ ,` action. Any illegal subs~ance found will be turned over to the app P rion. If illegal substances a: ° found in any unit, all residents of that unit will be subject to eviction rom c,-iminal prosec~ Reusing. . ~ ~t be registered and may stay for a maxirnurn of five eights (Even if it's in a different aril). It is e 7) GUESTS _ ~ fine of ~5t~ wit{ be charged tc °ach tenant for each nigf,t Each g:~es~ rnu uest is not to occupy anyone else's bed even if no emplioyee ~s cu+r..n~ y responsibility of all tenan`.s to report unregis~ered guests. an unregistered guest is in the unit. A g Former employees Previously evicted `rom VaiU3eaver Creek ~'ou ees dis overad n ho sing will be occu;.~ying it. " r : ^ rig-;e, Evicted e,..p.oY Crum-k aus~ng orore:tias a. ~.~y _ _ _ asp. ~iaillEe =r - - will f;~ ~ =cu ~°~ for treSr ,. guest, _'visit a~ _ d ~ fo;~-";er t:..;a.,* i/~"c:: ~ '! . _al,Ye,,,:,•; e~r,cted an t.;e - n da s a week from 1C:g0 PM to 8 .AM• Noise or r~~asic :arnct be heard in halls or a~'.jacent unis ?Hants have a right to Guiet. Tenant will receive one written notice; a second a cause for av~ction. Cuiet hours are scve Y at any time. T.. g) USE OF LIVING SPACE ,, beds aline and not use them for frier;ds or to =~,~re Tenant mist keep unit clean at a!I times. Tenant must leav~ empty _ ~ i enant must Leave e;TFty space r°ady and clean for the ; •axt person to move in. Tenor.: must keep t!-;~ir ~e~ong~ngs. unit sanitary. , P and are. cause fir j0) INCIDENTALS 'se as cr propane grills only. Cf ~arcoal grills in use area ire azard, are not allowed ~n rop° , ~ 9 eviction. Halogen lamps will be confiscated upon discovery as ~'z ' ~ 21w s`i~k cn hooks, sc~°ws, or stickers +•-. - 11) .F.'=GULATIONS ~• eddlin or operation of a business. iJa larg_ ^ No una alteration. No solici~mg, P g Is~ i ~ loud stereos, televisions er musical instruments. Sleeper should ba placed on any surface in the unit. No p y r9 soles era ;lot allowed in units at any time. g Y ~A 1rP 12) DAMAGES, t res onsibie for at( damages that occur in a unit~ns b (ant ~ ~ Senancs a?e respons bte o~ :~ m;~~on Tenant is financial.y P tenant and all the rocrnrrat~.s ,.••~! be .' ?Id a- ~-~~rs does Hat relieve Them from their portion of the resp dam-,e -~-- a~P ~ama~~e hesha `als tc report. h espGnS~cia`cr removal of trash frori. the unit. ny r~s area~~. If ~ : ;-an~'s ~:omT..... lees h ~ nts at the cost of `520 per container for each reside.: in fe,pcnsic° r~r one :-~t of e7a:rs :n the unit. T:=naa to t,;e t~na found outside the doer, ar i~ving area wit{ be charg.. ' the unit. 13) DECKS/BALCONIES/yyINDOWS - ~ es onsible for keeping decks clear of trash, b( of allowed on decrks/baiconiesror in windows~re , ~ ags,_~ i enant is r P banners, Christmas lights, and air conditioning unit _~• 1 EXHIBIT C (Attached to and forming part of;yaster Lease between The Vail Corporation, d/b/a Fail Associates, Inc. and Timber Ridge Affordable Housing Corporation, d,'bia Timber Ridge Village Apartments) MOVE-IN AND CONDITION FORI1~1 Page 9 i gp;,rtmun; Cor:vmun.tYi M17GVE-tlN MOVE-Ou7 INSPECTION AGREEMENT ---- ;ADt. No.) $~~nsN.b of M_naU"r'~~r'~ 5q'~dIvT4 O! MBn+4`QfrQW^•.~' REQUIRED NOTICE GIVEN °"' LEASE OATS From ------~ to BREAC~• G~ CONTRACT Fi"cNT COt-LPC"1GNS: Current ylontn iGd~e~'z=r b ~ Current Month (Du@) p,@vious Monm iDuej S ~- APARTMENT RE-RF.NrED at. NSW RESIDENT?BORATE 5-~- NEW RESIDEAff MOVE•IN DATE DATE ?t!BUC SERVICE ~C71F:ED _-------- G... i.-~IiM 7. S.P.rtaln. ! ' ..-~.~ '~bcJm^ i)Nb Mov.:n - ~- ~ - Mi 1 H4\ •~•0l MGM >IIOJ- iii IRb@~aent Nur'~al (Date! Pysrdbnt SVrowre pip Mcve Oat NGEANtNG b DEPOSIT DISPOSITION MihO S R MAINTENA RENT FOR MONTH;S1 S OF OTnER ~EDUCTIGNS: S S ~-- _ S TOTAL DEDUCTIONS'. S --' SECURITY D'cPOSIT ON HAND S ~---- LcSS TOTAL DEDUCTIONS S -- RENT PEFUND S ~-- TOTpL AMOUNT DUE RESIDENT S • TOTAL AMOUNT DUE C'NNER S ---- I unbar+sr.c ttat w, d~scre; ~'~~.:VnrY tJt;~call a t•~. iN?. of muv. w-~. __ rd ,,,,y; w Gadudcbd from RbadbM gi4::;tt.~e STATEMENT OF UNIT CONDITION PLEASE PRINT NAME: PROPERTY: UNIT: Ly Door 'J1~'ails Carpet -'~--- Biinds Windows Screen/screen door Couch/Cushions ~hairiCushions :~ffee Table (TBR, T18T2 or nd Tabies (2) amps/Shades (TBR Sg,T1&2 Stove/burgers-- /k~ Oven -_ -xNaust i=anlL-,ti~ Dishwasher Sink varoa a Disposal Counters Cabinets Fr.!~/Freezer Wells 7a b le!ch, a i rs,~s toc i s Vb~nlows Screen Blinds lLCa_ ifin~ lOK EXPLq I//alrs --- 'Medicine Cabine--~- ~ink ~our,ter oilet ~b/shower/shower door :or MOVE IN DATE: STATEMENT OF UNIT CONDITION PLEASE PRINT NAME ~ MOVE IN DATE: _--------- ' UNIT: `°° PROPERTY: LlV I~.-- NG° `n+, CvCr Walls 47K ', EXPI-AI Binds ~ _..._._.~_ - Chair/Cushions Coffee Table TBR. T1 &T2 on ~.nd Tables 2 SB, 1 w ~L~ ----~" ~a~~ ,/S;~ades TBt~., r' ~ -r r Stevel'ourners/kno'as Ov`n i_~iSh~N3Sher Sink Garoa e C~~~osal ~ s"_'--' ;!~,i ~ 3t5' ~~ ~~~- c=ri /Free'=r Floor w1lalls ~ iq`'t5 ~- ,-ols Tz~ier~;~a~rsst~ ~fvndows ;aeen Biin^s_-- K EXFLAI 6ATHttw~°~ Ceiin ~- -- ~._ r --_---___---.... ~ ~__.._-- ~.,. _ ..ine C~~_ =_----- S. ~k Counter Toilet T u~/shower/shower docr _- -~ poor _.__---- George Ruther - Fw: Employee Housing at ArraBelle ,tr1 LJ From: "Jay Peterson" cjkp@vail.net> To: Date "George Ruther" cGRuther@vailgov.com> : 12/12/2006 12:14:04 PM Subject: F~~v; Employee Housing at ArraBelle George, Here it is again. Jay --- Original Message ----- From: Jay Peterson To: gruther@vailgov.com Cc: jackh@vailresorts.com Sent: Wednesday, October 18, 2006 4:21 PM Subject: Employee dousing at ArraBelle George, Pursuant to our fast conversation, I am writing this a-mail to inform you that 1 have discussed our employee housing requirements for the Core Site with Vaii Resorts. The foilowirig is set forth in the Core Site Development Agreement in Article 12, entitled Erployee Housing. a.. 100 beds lost at the Sunbird Lodge will be replaced. b.. The incremental housing for the Core Site development (determined to be 20 beds during the entitlement process) must be provided. c.. The replacement housing for the Sunbird Lodge and the incremental housing for the Core Site(collectiveiy the "Core Site Employee Housing Requirements") must be satisfied from housing within the LionsHead area of the Town of Vail or other location that may be approved by the PEC. The Core Site Employee Housing Requirements will act as a condition to the issuance of any C.O, for the Core Site. Vail Associates may provide the required employee housing on an interim basis, not to exceed five years, e;<cept, that ultimately Vail Associates will be required to furnish permanent facilities for the Core Employee Housing Requirements. I will hand deliver a copy of this a-mail along with a copy of the Core Site Development Agreeme,^,t so you can verify the same. Page. Jay K. Peterson I~IE~1O}t~~`DU~I TO: File FR0~1: `v ira Timm DATE: June 6, 2007 SliBJECT: Summary of Town Council's discussion regarding redevelopment of Timber Ridge On Tuesday, June 5, 2007, staff made a brief presentation to Town Council regarding specific issues related to the redevelopment of Timber Ridge. Some of the items discussed were requests for further clarification that Open Hospitality Group;'Hillwood Capital Partners (OHP) has requested and other items were brought up by the Vail Local Housing Authority. The main topics of conversation ~~-ere: / The mix of for-sale units and rental amts / The configur-anon of the for-sale and rental units / Deed restrictions on some or all of the units, both for-sale and rental / Ownership of the Land Town Council stated the currently proposed mix of 312 rental units and 157 for-sale units seems to be appropriate from their perspective. There was some concern noted about the market for 167 for-sale units in the highly dense development that is currently proposed. At least one To~i:~ Council member suggested that the developer do a site specific market study to ensure the depth of demand at this location and what sort of unit types ar_d amenities would b~ expected by fixture' owr_ers. Town Council appeared to be comfortable that there vas enough demand in the rr.arket for rental units at this location. Town Council would encourage the developer to reconsider the unit sizes on the for-sal, units and create more one- and hvo-bedroom for-sale units. Town Council did not beliew-e that this location and proposed density- would appeal to families in Eagle County. Properly targeting the for-sale product will be critical. Again, .further market research should be completed by the developer to ensure the market demand exists. Town Council recommends providing a variety of rental unit types. Recognizuig that Town Council has not closely studied the rental market they suggested a range of rental units from studios, one-, two-, three-, and four-bedroom units. Again, Town Council recommended a site specific market study to ensure the markets needs are being met with the rental units developed. There was unanimous agreement from the Town Council members present that all units, for-sale and rental, should be deed restricted. There was not significant discussion regarding the type(s) of deed restrictions that should be put in place. Some discussion ~.~as had about a.v~~riety of t}'p~:a of deed restrictions, some of which may carry a price appreciation cap. The `'ail Local .Housing Authority has suggested that the Town and the developer e ~ aluate the viability of providing a land lease to the developer rather t~.an Fee Title to the property. The Town historically has had a policy of not selling land. The Housing Autl-ioriry believes that over the long te.-m this :~-ili ben,tit the ToEVn in multiple ways. ~'~'hen the term of the land lease expires the Town will be invoh•ed in future uses of the housing., The Town will have the ability to adapt to changing market forces. Additionally, if the courts take a more conservative view on long-terns deed restrictions the l0~yn would not be at risk of losing the desired use of the property. VLH.~ Rccon~mendations as to Proposed Timber l;idge Redevelopme.~t by Open.'Hill~~vood 5-9-0~ Thz Town should continue to own the Timber Ridge land and enter into along-term ground Ica.,c of the proper~y ~~;iti: tl.e devcloper, instead of conveying the propony to the developer. The Timber Ridge property should be optimized in terms of tre number of affordable deed restricted units. There should be the maximum number of such died restricted units consistent with a pleasant living environment. 3 There should be a mixfiUre of deed restricted rental units and deed restricted for-sale units on the Timber Ridge property. The VLTiA doesn't object to OpenlHillwood's proposed mix ofapproxirnately 1,250 rental beds and 167 for-sale units, so long as all the units are restricted per Items S and 6 below. 4 All of the rental and for-sale units on the Timber Ridge property should be restricted on a long-te*~n basis to occupancy by full time workers, with first priority to workers in Vail; and second priority to workers in the rest ofEagle County. This restriction should run for the length of the ground lease at item 1 above. None of the units on the Timber Ridge property should be free--narket rental or free-market for-sale units. ~ Some of the for-sale units on the Timber Ridge property should also be restricted on a long-term basis with a re-sale price cap tied to changes in wages in Eagle County. This restriction should also run for the length of the ground lease at Item 1 above. 6 If developers in the Town want to use~:ny of the redeveloped Timber Ridge beds to s. tisfy the housing requirements for their projects, the follotivil-~g should apply: - The first 600 beds (the current number of beds at Timber Ridge) should not be available to ar~y developers for this purpose. - The next 207 beds (on top of the first 600) could be used by Open,~Iillwood to meet the housing requirements for Gpen/Hillwood's parking structure project, so long as the units in which these beds are Located are restricted per Items S and 6 above. - Any additional beds (on top of the first 600 and tl:e next 227 allocated to Open/Hillwood) could be used by any other developer in the Town, including Vail Resorts, to satisfy the housing requirements for that developer's project, so long as the units in which these beds arz located are. restricted per Items ~ and 6 above, and also so long as the other developer pays the Timber Ridge developer at least the sa.~ne amount per bed as wouicl be required to be paid by the other developer if the pay-in-lieu option ~=~.~re being used by the other developer. (This level of payment would create parity ir, housing requirements among developers in the Town and also serve as a source of funds to be used by the Tir.7ber Ridge deveioper to pay the ground lease rental payments per Item 1 above. This will also incre:~se the overall affordability of the development.) `Most of the for-sale units on the Timber F~idge property should be one and two bedroom units, instead of three and four bedroom units. This is partly because research shows that there is a strong market demand for such smaller units in the Town, and partly because, given the large rer_tal component of the anticipated Timber Ridge project, there is likely to be mare demand for srrlaller for-sale units at the project than for larjer, more family oriented, for-sale units. The rental units at the Timber Ridge property should be a mixture of all sizes and ivp~s, from studios to four- bedroom units, instead of all two bedroom two bath units. 9 Individual owner-occupants should be given a first priority right to buy a certain percentage offor-sale units a.t the Timber Ridge propemy. 10 There should be a pedestrian;-bike highway overpass at the Timber Ridge project. V ,~ ~ ~ P, E s o~- s D E ~,~ . E i_ o P ra E r~ r C o r~~ ~ ,q ~,~ .,, September I?, ?007 ~1r. Stanley Zemler Town of Vail 75 South Frontage Road West Vail, Colorado ~ l b~ 7 RE: ARRABELLE AT VAIL SQCARE - TCO & LETTER OF INTEtiT - 12$O NORTH FRONTAGE ROAD, FAIL, COLORADO $155'7 Dear Stan: The attached Letter of lnt~nt for the purchase of Timber Ridge represents our proposed plan to satisfy our Arrabelle TCO condition. I look forward to discussing this with you in greater detail once you have had an opportunity to review it. Sincerely, •I'HE VAIL iC'ORPORATIOti RA VAIL ASSOCIATES, INC. 1 laY: ~ ~ ---_-_-~ KEITH FERNANDEZ President -Vail Resorts Development ComYany, as Authorized Representative ~"~/~ v. a~.o~, Nwl Rcarrl~ Ucrr,fopmcnl Cnr.ipnnY_ ~~= Bcnc.imnrk Road • Pn~t 0(ficc Boz 959 • Arnn. Colorado 81<,~0-(fl;i9 • i970' H45-2,336 • le: ?!1' c , ----- -------- - --- ---- _ __~_ J ~ .Oj 04;;-255., wxw.rrd~.ri,rn Vail • Breckenridge • Ke}stonc®• Beaver Creeks • Bachelor Culch~ • Arrowhead®• Rea sky ftanch'° ~~ ~, ~ R = ~ ~., ~ T s September 12, X007 :qtr. Stanley Zemler Town of Vail 75 South Frontage Road West Vail, Colorado 8167 1ZE: LETTER OF IxTEtiT- 12841 ~iORTH 1~'ROyTAGE ROAD, VAIL, COLORADO $1GS7 Dear Stan: This letter shall serve as a ("Letter of Intent") which purpose is to outline the general terms in which lsuyer would enter into final negotiations with Seller to draft a Real Estate Purchase and Sale Agreement ("R.EPSA") for the Property described above. The preliminary conditions are as follows: 1. Buyer: The Vail Corporation dba Vaii Associates, Inc. or its affiliates or assigns. 2. Seller: Timber Ridge Affordable Hcusing Corporation ("TR:AY.C"), or the correct vested entity; 3. Property: Timber Ridge Village Apartment Site located at 1280 North Frontage Road, ti'ail Colorado, 81657 containing approximately 10.08 acres more or less including all appurtenances there to and interests therein. 4. Purchase Pri±ee: The total purchase price will be Twenty-two'vliilion Dollars ($22,000,000.00). r. ~ ,. 'Vi.. . S, Earr,~~':' :'Money Deposit: ~. pon =nu*~Sal execution of tl-,e R._.PSA, Il Ayer wi:i deposit ~'~r ° _ tt~~~.~n L'.;,llars ~~1,;10U,O~JU.00) ('`Earnest i~ta,ney„) ir:'o an escrow a•~coiuit at Land Title Guarantee Company. Upon Buyer's wzitten notiticaticn to ~eller within rive (5) ous;ness days from t=,~ end of t_~e Feasibility Period, as provided herein, ti-.at acquisition of tl:e property is i~~asible the Earnest Money shall be deemed non-refundable to Buyer, shall be released to Se1Ier with interest thereen and the same sriali be credited t:ward the Purchase Price at Closing. tUr, within five (5) business days from the erd of tl?e Feasibility Period, the Earnest Money will be returned to Buyer with interest thereon upon written notice to Seller by Buyer that acqu;~ition cf the Property is r,ot feasible in the sole determination of Buyer. The effect of no notice will be the same as notice that acquisitor: of the property is no feasible. 6. Feasibility Perie~d: Commencing upon mutual execution of the R:EPSA by Buyer and Seller, Buyer shall have a period of six*_y (60) calendar clays to conduct a feasibility analysis of the Property; 7. Preliminary Title Reports: Seller will provide Buyer, at Seller's sole expense, a preliminary title report within five (5) days after mutual execution of the REPSA; ,,.~, a~.e.,.- Vail Hr--urt-, (Jr.r~dupmcnl (:~~mP~+~Y • G3~ 13rnrhmark R~md • Ib~f (?(fi~.c Bi~x 9~i9 • Av~m. G„I„rudo 816201Y159 • f9if3) R1.5 '4535 - fay I'J~li'; i3~}7 :' ~:i•~ • ~+-~+~~',~ ~'~+~'•~ ~~n~ Vail Beaver Creek°~ Rrw•kenrirl~e KPyatnne'~ Heavenly'a Airawhrml°C Nurhel•~r Gulrli~ Rrd Slay H~nrh'" Jark.nn Hale Cni( and Trm~i: Club"' V4;L R EsOfi rs- DG~~-.~PM~NT L~MPn NY 8. Seller's Contracts, Studies, Reports and Survey: Within five (5) days of mutual execution of this Letter of latent, Seller shall make available to Buyer fur inspection all materials in Seller's possession, including but not limited to: (a) any existing surveys of the property; (b) any and all soils reports, reports pertaining to Iazardous materials, government permits, licenses approvals and significant correspondence, (c) any and all easements, regardless of purpose or use, associated with the Property or any development approvals thereto; (d) any studies or other repots or information in the possession of or available to Seller which pertain in any way whatsoever to the Property; (e) all architectural and engineering documents; (f) analysis of current covenants or deed restrictions; If Buyer, in its sole and absolute discretion, is not satisfied with the Property or the results of an s reports, srtdies or investigations, then Buyer may terminate the REPSA by written notice given no later than the expiration of the Feasibility Period, whereupon the Earnest Money shall be refunded to Buyer wit,'t interest thereupon; 9. Contingencies: During the Feasibility Period, as provided herein, Buyer shall satisfy itself as to the following; (1) the physical condition of the Property including environmental, hazardous conditions, zoning and all other such aspects; (2) all contracts, studies, surveys .and alt other information to the operation and ownership of the Property; (3) the commitment for title insurance obta ned by Seller; and (4) any other studies and reviews Buyer chooses to conduct; 10. Title and Closing Costs: Escrow will be with Lard Title Guarantee Company• Title will be conveyed by General Warranty Deed, free and clear of all encumbrances and defects (including all assessments and levies of record at closing, except all those exceptions accepted by Buyer. A standard form ALTA Title Insurance policy will be issued by the Title Company to Buyer at close of escrow. At closing, Seller shall pay: (a) real estate property taxes and assessments attributable to the property for the year of closing, rot yet due and payable, shall be prorated to the Closing Date based .upon the most recent mill levy and assessment pursuant to the REPSA (b) all transfer taxes applicable to the sale, if any; {c) one half of the closing and escrow fees (and taxes thereon ;and d` amount equal to the standard premium (and taxes thereon) charged by the Title Company for the Title Policy with a face amount of insurance equal to the Purchase Price. Each party shall bear its own attorneys fees incurred in connection with the negotiation of this LOI, the REPSA, and closing. Any other closing costs or chazges not addressed shall be allocated between the parties in accordance with the generally prevailing real estate closing practices in the Vail Valley; I1. Closing.• Closing of the Property shall occur through Escrow within ten (In) business days from written notitication by Buyer to. Seller that acquisition of the property is feasible subject to Town of Nail's approval of Buyer's Site Plan and fast tracking of all necessary development approvals for the site including Buyer's building permit and Tower of Nail's release at Closin, of the TCO conditions presently existing for The Arrabelle at Vail Square pursuant to the Core Site Development Agreement, Rtz-Carlton Residences, Vail pursuant to planning and zoning approvals, and The Chalets at the Lodge at Vail aka Nail's Front Door pursuant to Front Door Development Agreement. Buyer's Site Plan, attached hereto and incorporat:,d by this reference as "ExhibitA", depicts Buyer's commitment to develop up to 1,200 deed restricted, employee.housing beds as follows: /,r:lter of Inlcnt - Itmber R1dge Y7llaRe Apor~mrnr Sire, I2A0 :'North Frontage Road, Yoil, Colorado 81637 2 ~~ V A I L RESORT S .Jt~ tl_.Ji yEh 1 V._ 1 .hv (a) 1'~'ithin eighteen (18) month from receipt of Town of Fail development a;_~provals of the Site Plar.; 6G~1 beds will sct~re to replace and th pro ~~ ~00 by B yer'stlaffil atest~ocbuild emY e vee (b) 140 etnployee beds will fulfill beds far Tre Asrabelle at Vail Sq'1ar'e (20 beds plus 100 replacement beds far Sunbtrd), Ritz-Caritan Residences, Vail (1027 beds) ;u~d The Chalets at the Lodge at Vail aka Vail~s Front Doar (~); (c) Buyer will develop additional beds an94 offf Sgt be~for E er Vail;g appro~~u.s have been secured for Ever Vail and North Day lot to satisfy (dj Buyer would be willing to allow Hillwood to purchase its housing requirements under the Lions Head RFP whirr +is estimated at 2i5 b~u ePultBn teclases o ptne REPSA, tf not H~ewoo3 v~nll gar:~truet the b,~,~s it i,:._wvod :,c:~tr.-..~s Nttl• y . be provided thz same purchase mocha.^.:sm as provided :n section (e) oela~; and (e) T'nereafter Buyer will commit to build any additional units requested and paid for by t:~ Town of Vail or a developer at the gre~t e-nf to eerbeds$,lt 1 p ov 0 hoc ommunity with up to 1,?Gt~ pay in '~ ieu fee then in effect far su p Y emplc; -~e beds on site total. I2. S..ller Cooperation and Obligati S:tct? caner ration shallrtnclude eBecution of allaappl ca:ionsr removal of cantingencics to clostnb ~ ort of all matters with any public or pri ~ ate plans or other required submissions, as well as supp hcations for errrits in agency. Seller grants Buyer the right to act as Seller's agent in making app • P those instances where only the Owner of record of the Property can apply for the same. Buyer shall be entitled, in its exclusive discretion and its oneimsrovzmenFeorepublict faolit~es required underrthe Closing to complete any and all constructs p development approvals mandated by of nsulranceerequired for thegcomplet onyof sal dl onst;uct'ion as additional insured on any po 1 Y ir:~provemer>ts or public faeilaties and shall ftt-ther require all contractors to name Seller as additional irs~.:r.~i on any policies of ins~:rarce ;eq~.:ire1 `or same for the period of lime :a which Seller remains the titre holder to the prcrerty. Sell;.: shall also support i3uyer's planned development of the subect project during tl-~e entitlement process where appropriate. Buyer shall cam.mence with thz deveioprn~at of plans for the site for seller's use during the Feasibility Period; Y3. Bindinn Effect: It is understood that the proposal is binding on neither the Seller nor Buyer and that thz REPSA shall set forth the respective rights, obligations and duties of Seller and Buyer; 14. Acceptance: Upon Seller's acceptance of this Letter of Intent, Seller shall proceed with the preparation of the k:EPSA which both pasties will work diligently to execute within twenty (20) Mays after Seller acceptance of this proposal; 1.5. Exclusivity: Durng the period ~ellQa an Selerecovenantsotand agreesdthatnitnwilg refra~n frame which is estimated to be twenty (`) erson other than Buyer; . accepting offers for the P.operty from any p Ixuer ajLitnd -Timber Ridge Villo~e .9partmant Site, 11NO North Frontage Road, {'Gt(, Coloiudo 81657 3 ~~ VAi;. ResoRrs~ D f ~ f ~. ~- M E'h i% ~ v. -~ N Y 16. Broker Disclosure: Buyer and Seller acknowledge and agree that neither has dealt with any broker or finder in this transaction and that no broker or finder shall be due any brokerage tees or compensation. 17. Governing Law/ Venue: This Letter of .Intent shall be governed by the laws of the State of Colorado and venue shall be proper in Eagle Coi:ra<-, Colorado. If the foregoing is acceptable, please acknowledge by signirg below and return this Letter of Intent no later than 5:00 pm or. Monday, September 17, 2007 to cur office at the address on this letter. Sincerely, THE VAIL CORPORATION DBA . IL ASSOCIATES, INC. %~ /~ BY: C~/! % KEITH FtrRNANDEZ President -Vail Resorts Development Company, as Authorized Representative AGREED TO AND ACCEPTED this day of , 2007. TIiviBER RIDGE AFFORDABLE HOUSING CORPORATION ny: TOW'~i OF VAIL as its Authorized Agent By: Printed: Its: A~RM~'d'h!~ os F+tvor ~ r. y{~~ ~L !fir --9" i'? ~ ~ ~~ 1_rrrrr of J„rtnt - ~in,bcr ,4idPC 1 'illapc RDartme.ht Sue, 1:80 North Fronraga Rood Vull, Colorado 81h57 A C~ .. S '~ ~~ ~ --- *~ - -- I a .y, ~ ~: ~""" a1 SECTION BLDG. B ~S -CT!C+N BLDG. C r SECTION BLCC. A °d""'+ ~. „>r.. ~ ~+ ~ ~--- " ~ _.- 1 _-~--- li i'.,I 1 .Ili If. ll :I '1 U V. 1! it !i:fi lii I ~i i ~ l ~ 1 `' = ~.~~ - - X11 1 f i --y _ ~ ~ 1 ~Y 1 F t ... . ~. _ f %_ 1 I I 1 1~ ~'{~ 1 sly _'~~ -~ TIPatBEA RIDGE. VAIL,CO. f SITE; DENSITY STUDY f- ~ or.~+ wea won+ms ce.~•rtu~ owt~. ~wu.aw+. +w.r y w +me .,.oviw rrY o..a. VAIL RESORTS' Juu .-noiher Uay fn VaraJi,c' Q~~3~~ ~~ Septelnber 28, 2007 Mr. Stanley Zemler Timber Ridge Affordable Housing Corporation Town of Vail 75 South Frontage Road West Vail, Colorado ~ 1 b57 RE: 12SO NORTH FRON't'.4GE ROAD, VA1L, COLORADO $1657 Gear Stan: ~`~' ~ , ~. ~i 1,r~t Pursuant to our conversation earlier this week, I have summarized below Vail Associates Inc.'s development plans for Timber Ridge for your co~isideration in conjunction with the Lett of Intent previousl er of a long term land lease instead of a,t outright purchase of Timo~n.to discussing the possibility our Letter of Intent and would welcome the opportunity to discuss thatt optianlfurt3~er propose) in Develonment flan ®pteon A: * Approximately 1200 employee beds Surface parking ..1-~auudry Facilities * Common congregation rooms * Rental and possibility ofdeed-restricted for-sale units * Improvement of current bus stop '~ On-site open space with pedestrian connection to off-site open space * 1i~lixture of 2, 3, and 4 bedroom units to contain 4 beds, 2 baths, kitchen, and living spare. "` 4 story structures * 7 buildings * Building Height 42'-45'. * SteeL'concrete construction with anticipated life cycle of SO years '` Each unit to be approximately 1,200 sf. * 420 iota! parking spaces provided ~~' ~`~ ®.d.Vi~srr ~d~ BXE(.T.f~R1U(,E Y.(Skt RtkNtT Vall Rosorta Managsmant Company ~rF' KEYSTONE (~/,~@BYLY!/,l[ "~°'~~'s' ~x:xX,t:sc~xrs'' . Poat Office Box 859 137 Benchmark Roed Avon. Colorado 81620 • Construction Plan Option A: # Anticipated Project Phasing. ' -Phase 1-Construct approximately 672 new beds while Leaving between.216 and • ~ 264 existing beds online. ` -Phase lI -Construct approximately 360 beds as needed, for Lionshead RFP, • EverVail, and other developtt~ents. -Phase IIl - Cocstruct the remaining 168 beds. * Prcrased Phase I Schedule -Begin demolition 4115/2008. -Receive building permit 5!1512008 -1st building (approximately 168 beds) delivered 6/1/2009 -Remaining buildings in Phase I completed by 10/15%2009 ~~velot;ment~ ~ntian I~; * Approximately 1200 employee beds * Structured parking (2 levels) + Laandry Facil',fies * Common cangregaiion rooms * Ou.door common areas . * R ;n~al and the possibility of deed-restricted for-sale units * Isrzprovement of current I,+zts stop * Significant increase of onsite open space ~h:th pedestrian connection to off site open space * Mixture of Z, 3, and 4 bedroom units to contain 4 beds, 2 baths, kitchen, and living apace. * 4 story strictures * 6 buildings * Building Height 42'-45'. * 5,,~.4 a -~.~~r;o-,~ ,~~ cot:sirtaction will! a::ticipated life cycle of 50 years • E3c i.:r_it t,.~: ~~~ Api':•~xirY~ately 1,200 sf. 4Zi total parting spaces pro-viued ~ Similar to other Timber Ridge propasals, would seek the possibility of cost- sharing far the extensive cost ~~ssociated with structured parking Construction Plan pnr.on S: * Articipaied Project Phasing. -P"ase"1-Construct approximately 784 new beds while leaving between 216 and 264 existint; beds online. -Phase lI - Construca approximately 224 beds as needed, for Lionshead RFP, EverVail, and other developrne:nts. -Phase III - Construct the ret~,aining 196 beds. * Proposed Phase 1 Schedule -Begin demolition 4115/2008. -Receive building permit 5/15%1008 -1st building (~ppmximataly 'fib beds) delivered 6/15/2009 -R~:naining biili:ing~ in Phase I ::orrp[eied by 10/15/2009 :2 Letter Zemlcr 4-29-07 (3) (2).doc . Entitlements: * 1st submittal to TOV 11/15/2007. * All approvals required to be received from TOV 2/1/008. * Submit for building permits 3/1/2008. (85% Construction Documents) * Receive building permits 5/15/2008. Exnerlence: __--- To provide some insight as to our team's experience, we have been .involved in the following similar projects. • OZ Architecture has designed and successfully executed a number of similar projects such as: o Sky Chutes Lodge, Copper Mountain, CO o Keystone Resort,. Keystone, CO o Sheraton's Mountain Vista, Avon, CO o Wherry Housing at Lowry Air Force Base, Aurora, CO o. Grand Canyon National Park, AZ o Hubbell Employee Housing, Apache County, A7_ o Yosemite National Park, CA o Wuksachi Village at Sequoia National Park, CA o St. John's Employee Housing, National Park Service, Virgin Islands o Ouler Banks Employee .Housing, .National Park Service, NC o Brunetti Lofts, Denver, Co o ,Blake Street Aparttxiertts, Denver, Co v Jackson, WY Affordable Housing o Mercy Housing -City Park South o Highlands Garden Village .Multi-Family Apartments o Highlands Garden Village Senior Housing o Denver Housing Authority/Globeville Residential Community o Clock Tower Lofts o Buerger Brothers/Fireclay Lofts o Chamber Lofts Swinerton Contractors out of Denver have successfully executed a number over 2000 units of employee, affordable, and student housing in projects such as: o University of Colorado dormitories, Boulder, CO o Fort Carson Employee Housing, Fort Carson, CO o Vandenberg Hall at Air Force Academy, Colorado Springs, CO o Thomas Bean affordable housing in Denver, CO o Sky Villa at Orchard Crossing, Denver, CO o University Lofts at University of Denver, Denver, • Keith Fernandez, VRDC President, has successfully overseen the construction of over 500 units of affordable deed restricted apartment units in both iVothern California and Hawaii. Later Zemler 9.29-07 (5) (2).doc • Thomas Miller, VRDC Project Manager has successfully managed the design, entitlement, and construction process fora 160 bed, 40 unit dormitory at Cochise Community College, Sierra Vista, Arizona; and a 30 unit government subsidized housing project in Phoenix, Arizona RentaD Program: As supported in the detail rental program analysis attached, we anticipate charging fram $375 to $550 per bed, depending on season. This number will obviously increase with inflation. In response to your expressed concern that beds be made available to employers wi't-in tl,,e Town of Vail and not just Vail Resorts, please be advised we arv v~~i. g to stipulate tlYat beds would•be made available to these employers as Weil acre. ~irail fulfills its need for 650 beds. Additionally, we are amenable to allowing the Housing Authority or some ether entity to manage the renta! of the units. In addition fo the summary I am eneiosing herewith a copy of the current site, phasing and unit plan, a rental income analysis, construction cost estimates, photos reflecting our a~~~icipated fin>sh level, and overall building statistics. Once you have had an opportunity to r~:view, I am prepared to meet and discuss any additional questions or co,•~cerns you may have. Sincerely, ~'KE VAIL COIiPCR,1TI©N DBA V.~#IZ ASSOCIATES, INC. BY: KE1Tti FERNANIiEZ, Pi2ESdrJE,VT & (:()®- Vi2DC Enclosures Cc: Rob Katz (.otter Zemler 9-29-07 (S) (2).doc ~PTI~N 1 MATRIX - . - --~ / aEas `--- ~~' i UN11S -- __ 'A p-- t2---- ------ / PAkK1NGS _ PHASE B 2 42-_._ 168 _ 58.8 - 1 - ~ 16d 58.8 --- _ ? --- U 2 ~2 _ 16B X58.8 I E -- ------ ----- _ 168 58.8 -- 2 42 - --- ---- - - I F _ '--~ --- - ~ - - -168_- - ~-8 --- - 2 -. ~ - - 2 __-_ 192 67.2 - - - - _ E ~ 168 - 58.8 _ ` 3 1.200 ~o„'~~ - - _ PARKING REO'D =300 !,NITS X 1.4 . 42`0-~_--- , PARKING PROVIDED = 420 -nr[ I lmaa rnanasr ayn.csi -- ------------- -. - - ------ f A I5t BUMI ___ __.---. _.-.- .___ _,. __. TIiUId3ER Ri©C E. VAIL,CO. 1 SITE PI~gN CjPTiON 1 _ SCALE: I' = 120'-0' -- -- -_ I ''~/ SEP.27A7 PkOJECT: 57006.00 ~`O,y~r H T'7 i A9CHIIELfllflf 2 ~o o ~ atL LION scALE~ r=w~_o- -- -- -- o~noN 1 Mn~ix ---- _~+~ „~ . - - ~ -- ~ UNITS - --- _ - -- -- 1BEDS / _ -- - PARKWGS 2 t9 ---'~ - - - ---- PHASE 68 6 R - .. - 2 ng ,_ 196 . I 68 6 C 2 0 , 9 _ 1~ . 68.6 I - -? E 2 - ~9 -~- 196 -- - _68.6 275 SP I __ _ _ _ 1 9 196 - 68.6 - _ 3 L c 221 78.4 -- 311 1.204 421.4 ? PARKING RF:p'p = 301 UNITS X 1.4 = 422 PARKING PROVIDED 480 I R C q C041MON ~_ _ - -- ---~ _ D 2 LFYEL PARKING STRUCIUF.E 480 TOTAL SPACES 24 ~ PER lE'JEL ~_ucw--: _-_~~ - c ____----~-- ~,o~~ TIMSEI~ R!®GE. VAIL,~O. SITE Z Lq~1 OPTION 2 SEP.2/.07 PROJECT: S1COti.Cp N `~/ opt AflCNIIfC1l~f~ c. _------~ v ~ Y SCALE: 1'=40•_0, _.__ A A ~ A A w `1 ii'a~F~ER I~1®GE. V~IL,C®. ~s~'..~~Ii~IG P~.A~lS OPTIC~~1 1 & 2_-- • 1 ~A~t ~ ~ o SEP.21.07 PRQJECf: !~/Q05'JO RflCNIiEC1URE 4 .5 4 3 4 ?_ OPTION 1 - 6 B~~'S ~ 3 4 3 3 4 2 OPTiGN 2 - l BAS`S - MOMS T1i~~~~i~ i~iDOE. V~lL,CO. ~7 ~1__UNIT Pd,.I~NS ~U --- _ ~~ scntE t;a'=ro' ------~-- stf'.2~.0~ ~Hattcr: 5~~ ~ ~fltHitECIUflEs - - - - -~s _ e' - - - - - - - -- -- ---~ 4 BED ~OJMS S EM ~ ~~) ~ F~ 1 103TRJ~'p~~'~'~ rlib{BER RIDGE -EMPLOYEE HOUSING (Option wish Su~faC' ~~ ~%^~) OV81RAL16UIldN6 BTA710T1Cs n~ AAC-e;TECTURE - 670oA.a0 TIMBER RIDGE - EMALOYEE HOUSING (Option with Parking Structure} ovsgAU eultlx~Ia srATlsrlcs OZ ARCHITECTURE • 6700e m BUILDIMQ ST beds ST Available ST Used by VR Average ST Uszc1 by Vii PEAK ST Usejd by General Public Average ST Used by all Average ST Used by all PEAK ST/l.T ~$ ST Available ST Used by VR Average ~' ST Used by VR PEAK ST Used by General Public Average ST Used by all Average ST Used by a!I PEAK STILT earls ST Available ST Used by VR Average ST Used by VR PEAK ST Used by General Public Average ST Used by all Average ST Used by all PEAK STILT gig ST Available ST Used by VR Average ST Used by Via PEAK ST Used by Genera! Public Average ST Used by all Average ST Usad by ail PEAK Peak Usage by VR 45550 -Other Lease Income (Historical FY'07) Monthly Rent ,Spd or L'~n;t) ~3 2003 3s terisber guFt 2003 Ottvber 2!"X1 Navasnb~ 20(}3 [te~ccmbor X04 Janua 2084 Februa ___ .. 2c~u - 11 20$ 1 ti 2ne 15 2oa 25 208 43 Zoe 128 2oa 140 "~`~ 19 16 37 47 143 140 2U 38 34 4 0 0 0 ~3- 54 49 29 43 1Z8 140 4t:~; ~4 gust _ 2C;8 79~ 2004 S ten-ber 20e 60 21104 October 208 41 2004 F3avetnDer 425 _ 47 2004 Aacember 425 143 2006 Januar 425 140 2005 Fahrua 425 29 43 44 148 388. 420 403 45, 45 45 256 417 425 411 _ 15G~ 125 76 19 0 0 0 185 168 120 167 388 424 4~3 1 fib 2005 ~ -ugust -.r_ ~i;=':~ 1$7 2005 S arnb~ 425 154 2005 October 425 256 Zoos November 507 417 ~.~u5 Q~c:smber 507 42~i 2006 Janua :iU7 411 2806 Fst-rua 507 22 26 36 141 454 513 4~ 5U 44 41 250 519 520 490 £i5 85 51 30 0 0 0 10ti 110 87 171 454 513 466 106 114 106 250 519 520 490 2006 Au ust 2806 Se ber 2006 October 2006 Navamber 2'f106 l)ecamt~er ~~ Jarwa ~~ Fubru 5n7 50' 507 618 618 618 618 62 61 59 182 506 623 607 64 63 60 242 617 630 616 10:1 103 94 14 0 (1 0 1 137 164 i 53 196 506 62 ~; 607 157 157 136 256 617 630 616 12.62% $41,278 $644.96 i~Tifi 12.43% $33,796 $536.44 vrrtit 11.83% $30,408 $508.80 vTiii 39.16% $70,031 $289.38 ~d 99.84% $193,124 $313.00 t'.+zu 101.94% $200,968 $319.00 ~°~ 99.68% $202,539 $328.80 ~'~ Average Bed Rent: $310.25 -` 20(-4 2004 2004 2004 f4lerch sil ~Jla June Z08 20c3 208 208 1`:(?~ 111 79 55 1;x.3+ 1d7 i9'~ RA 2004 42 ~R 0 16 7~i 97 149 ~ i50 4 --127 1~~~1 152 .~ _ --191 o ~~~ 15;i1 lii4~_ 2011 2014 2005 2005 2005 2005 2005 AAerCh ' Onril un., t..s t..t.. 4='~ 425 425 425. -- 425 36C 186 ~i3 ~i4y~ 20 397 294 198 62 _ 51 0 24 68 150 87 :~66~ _____~ 210 111 204 107 3~ .,.,..,, ~ 294 165 216 114 '~"' '~ ~~ 2006 2006 ARerCh Ae•ril u.. 507 y07 5~l7 507 50 r 412 24i 40 49 65 445 342 22u 68 66 0 24 59 75 104 4~i2 265 95 124 169 `~5 ~,,,, 342 2(14 123 157 . - - _...,. ~.,~,, c~x,~ . zvu~ March w..~u 618 - 618 618 Elfi YVt 618 576 296 $2 7?. 75 587 424 181 80 78 0, 27 74 115 132 576 329 136 187 207 587 451 166 ~U3` 216 94.98% 68.61 % 29.29% 12.94' °l0 12.62% $1$2,085 $127,664 $19,45 $45,033 $310.20 $301.09 $107.43 $575.41 Bed End Un~i i.P~~it ~~•.ha ~~~1E~iORA.\'DL'~i TO: Stan Zemlcr Matt Aire ~+ina Timm FROM: Malcolm Murray DATE: August 31, 2007 RE: ~~ail l<tesorts' Employee Housing Obligation You have asked me to rep-iew Vail Resorts' employee housing obligations in the Core Site Development Aon-eement ("Agreement") and advise you on the status of those obligations ir. light of t~'7e imrninrnce of a request for a certi ~icate of occupancy for the Arrabelle Project (r~ferrcd to in the Agreement as the "Core Site Project"j. Vail Resorts' employee housing obligations are recited in Paragraph 12 of the Core Site Development Agreement, entered into as of ~"ovember S, 2004. Vail Resorts' employee housing obligations are re}erred to in the Agreement as the "Core Employee Housing Requirements." Paragraph 12 reads as follows: 12. Emnlovec_ ° Housin_,7. ~') In connection with the undertaking of the Core Situ Project, Vail Associates will be required to replace the resulting loss of employee housing (i.~., the 100 `'beds" lost) at the existing Sunbird Lodge, which will be. razes! and redeveloped as part of the Core Site Project, and to add incremental employee housing (again determined pursuant to a requisite number of "beds"j corresponding with the employee housing burdens generated by the Core Site Project development as and when actually developed. The requirement for incremental housing will be determined during the Town of Vail development plan review process for the Core Site Project in accordance with the current prevailing standards and pi~licies, consistently applied, that are generally employed for development projects in the Town. The replacement housing for the Sunbird Lodge and such incremental housing are sometimes referred to hereinafter collectively as the `'Core Employee Housing Rcquirem~nts." The Core Empli~~~e Housing Requirements will he satisfied froill h~~usird within the Lionshtad area of the T~~wn ut Fail, ar any other location that rilav re sYpruti-ed by Z~o«r,'s Piann;n`,_' :]nd En`.'rOrlIllental C~1mi~115S1vn 1n tilt: u~:~'CiOp111~nt plait prc~crss ("Ac;c~pt::ble.Locations"j. b) The provision of required etnpl~~yee housing to satisfy the Core Empl~~vee Housing Requirements will act as a condition to the issuance of any C.O.s for the Core Site Project. Vail Associates may provide required employee housing on an interim basis, not to ex~e~d tine (s) dears, cKC~pt that ultimately Vail :~ssoclatcs till f-c r~~_,~sired to furnisi~ p~rtnaren. tacilitic;s ti7r the ~..(1rc; Empii>yee Housing Requirements. It is my understanding that ir+, addition to the 100 beds from the Sunbird, it has been determined that v'ail Resorts has an obligation to provide ?0 beds for the Arrabcile Project and i % beds for the front Door Project. This means that the Core !/mployee Housing Requirement is a total of 13~ beds. Tha Agreement requires that Vail Resorts satisfy the Core Employee Housing Requirements through the provision of pertna.nent housing units in ~ionshead or ~±ny other location in the Town approved by the PEC. At the time of the dratiing of the :agreement, it was recognized that provision of the units might rot be accomplished by the coml3leticn of the Ar~abelie Project, so Vail Resorts was given 5 years from the date of the Abnecment to provide the additional units, so lorg as Vail Resorts provided employee housing on an interim basis. `i~he permanent housing must be provided by Novetilber 8, 2009. . V:iil Reorts has prodded the interim housing by teasing Wi=t units at Timber Riclge, pug want t.> rr:: ti'la~te;r Leas; bct~c~een 4"ail A~:~ociat~s, Inc., and the Timer Ridgy=e Vitiage Affordable Housing Corpurution, dated October 1, 2()0~. Paragraph 5 of the :~I;ist~r Lease a~.:kni~wledges that the 'laser Lease satisfies the requirement to provide interim housing. Tll~ hrovision of interim housir_~~ is acceptable until November 8, 2009, but after that date, Vail R.;soris must provide those 1.32 bes.ls irl permanent loca~<-~ns in Lionshead or another locati.>n acc~ptab!e to the PcC. w"Zile Vail Resorts is allowed to provide interim housing for ~ years, its obligation to provide permanent housing is a condition for the issuance ofany certificate of occupan;.~y for the AlYabelie Project. In other words, 'vail Resorts must provide or identify how it wail provide I3? permanent beds prig to the issuance of a temporary or final certificate of occupancy for Arrabell~. It is my understanding that Fail Resorts has not acquired or identified how the 132 beds will be provided on ~. permanent basis. As a result, Fail Resorts is not incompliance with Para~',ranh 12 0* tllt .`~.~reoment, and since i'ar~graph 1?(b~ makes provision ufthe required employee housing a condition to issuance of any certificate ofoccupaney for the Arrabcile Project, the Town may withhold a temporary certificate of occupancy. Fail R~Se)rt5 may satisf~• the Cure: Employee Housing Requirements in several wavy: 1. Fail Rese~rts can commit to construct additional units in Lionshead. Those units must provide a minimum of 1 ~? beds and must be ready far occupancy no later than \ovember ~, 2009. ?. ~"ail Resorts car. acquire existing units in the Town sufficient to provide l32 beds, This suiutiun will require approval of the PEC to the +:xtcnt the units are; outside Liunshead. ~. `'ail Retorts can construct or enter into an a~*reement for the; construction of new units at Timber Ridge or another location. The new units must provide 132 beds and be permanently in the control of Vail Resorts for use by its employees. If the units are outside of Lionshoad, the PEC must approve the location. ~. ~'aiI Resorts and the Town could enter into an agreement to pay to the Town a sum suffcient to permit the Town to construct or to acquire units adequate to satisfy the i 32 bads requirement. Such an agreement would essentially be an amendment to the :Agrce:r~cnt and would acknowledge satisfaction of the Core Employee Housing Requirements. L~niess one of tre about solutions is in place, the Town may withhold a temporary or final certificate oY`occulyaney. 3. Keith A. Fernandez President Vail Resorts Development Company P.O. Box 959 Avon, CO 81620 ,.~ `.rte (.~~ y ~ , ~,~,. ~~ ~wxoFV~,~ . Tururr .".fa.nuger Re: Compliance with the Core Site Development Agreement Dear Keith: As you know, at the time of the approval of the Core Site Development Agreement in November, 2005, Vail Resorts committed to providing employee housing for employees displaced by the demolition of the Sunbird Lodge and additional employees generated by the Arabelle Project. With the anticipated completion of the Arabelle Project, it is now time to resolve how the obligation to .provide employee housing will be met. Vail Resorts' employee .housing obligation is recited in Paragraph 12 of the Core Site Development Agreement. Vail Resorts' employee housing obligation is referred to in the Agreement as the "Core Employee Housing Requirements." Paragraph 12 reads as follows: 12. Emplovee Housi~: a) In connection with the undertaking of the Core Site Project, Vail Associates will be required to replace the resulting loss of employee housing (i.e., the 1.00 "beds" lost) at the existing Sunbird Lodge, which will be razed and redeveloped as part of-the Core Site Project, and to add incremental employee housing (again determined pursuant to a requisite number of "beds") corresponding with the employee housing burdens generated by the ~ Core Site Project development as and when actually developed. The requirement for incremental housing will be determined during the Town of Vail development plan review process for the Core Site Project in accordance with. the current prevailing standards and policies, consistently applied, that are generally employed for development projects in the Town. The replacement housing for the Sunbird Lodge and such incremental housing are sometimes referred to hereinafter collectively as the "Core Employee Housing Requirements." The Core .Employee Housing Requirements will be satisfied from housing within the Lionshead area of the Town of Vail, or any other location that ?> ~o,Jrh 1'7[,~'rrAd RvJ,,,r' . hail. (.olor~rdo SIG•5,' • `~i'0-<f?~-21(iC ,'rA,ti ~?0--I%9-31.>7 . ruzuu,.r~arl;or,,corn may he approved by Town's Planning and Environmental Commission in the development plan process 1"Acceptable Locations"). r) 1~he provision of required employee housing to satisfy the Core Employee Housing Rc~uirements will act as a condition to the issuance of any C.O.s for the Core Site Project. Vail Associates may provide required employee housing on an interim basis, not to exceed five (5) years, except that ultimately Vail Associates will be required to famish permanent facilities for the Core Employee Housing Requirements. The Agreement requires that Vail Resorts satisfy the Core Employee Housing Requirements through the provision of location in the Town approved by the PEC At the timelo~thejdrafting of the Agreem~tr it was reco~*vzed that occupancy of the permanent units might not he accomplished by the completion of the Arrabelle Project, so Vail Resorts was given 5 yeazs from the date of the Agreement to deliver the permanent units, so long as Vail Resorts provided employee housing on an interim basis for that five year period. In accordance with the Agreement, the permanent housing must be ready for occupancy no later than Novemb 8, ?009. er Vail Resorts has provided the interim housing by leasing ~~ units at Timber ~dbe, pursuant to the Mast;,r Lease between Vail Associates, Inc., and the Timber Ridge Village Af%ordable Housing Ci;rporation, dated Qctober 1, ?005. Paragraph 5 of the ~'iaster Lease ackni5w?edges that the Master Lease satisfies the requirement to provide interim housing. While Vail Resorts is allowed to provide interim housing for 5 years, its obligation to provide permanent housing is a condition for the issuance of any certificate of occupancy for the Atrabelie Project. .In other words, Vail Resorts must provide or identity how ii will provide the necessary permanent beds to the satis#action of the Town prior to the issuance of a temporary or final certificate of occupancy for Arrabelle. Vail !Z`sort' has rot acquired or begun consi.uction of units adequate to meet its obligation. As a result, Vail ResorTS is not in compliance with Fai'agraph I2 of the Agreement, and since Paragraph 12(b) makes provision of the required employee housing a c.~ndition to issuance of any certificate of occupancy for the Arrabelle Project, the Town will withhold a temporary certificate of occupancy. You have pro~ideri me with a draft of an Employee Housing A,~, •eement. This draft Agreement outlines three options far providing employee housing far the Arrabelle, the Front Door Project and the Ritz-Cazlton Residences. The Town r,~ts all ~.~ options in the Employee Housing Agreement, ;Kane of the options satisfies the obligaiion in the Core Sits Development Agreement since none of the options offers the prospect of adequate p~nanent employee housing units by November, 2009. In addition, the Town will only address the emplo}ice .housing requirements far Arabelle at this time. The Town is willing to consider two alternatives far the Annabelle Project employee housing requirement at this time. The first is defined in the Core Site Development Agreement. It requires the Core Employee Housing Requirements be satisfied from housing within the Lionshead area of the Town of Vail, or any other 1cc;ation that may be approved by Town's Planning and En~~iranmental Commission in the development plan process ("Acceptable Locations"). 1n accordance with the Agreement, the permanent hauling must be ready for occupancy no later than November 8, ?0~)y. Alternatively, the Town is prepared to amend the Care Site Development Agreement to provide that Vaal Resorts meets the requirements in the Corn•-nercial Linkage and tnclusionary Zoning ordinances adopted in April, 200;. The Town will accept afee-in-lieu payment of $17,345,789.99. The Town believes the provision of the employee housing beds should occur as previously ageed. As fee-in-lieu of providing the beds was never contemplated in the Cere Site Development Agreement the Town believes the appropriate fee-in-lieu payment should be equivalent to what would be required if the Core Site Project were approved today. The fee-in-lies amount approved in April, 2p07, is based on current market data that defines the "aifordabiIit " between local median. income and local median home pricey. The Town Counci wants to ensu.*e that the tee-in-lieu is always reflective of current market conditions.. To achieve that, the fee-in-lieu will be updated on an annual basis so that it is based on current median income and home Pries as t~sey fluctuate. For commercial elements of the Annabelle Project, including the 100 employees displaced by the demolition of the Sunbird Lodge, Fail Resorts must make a mitigation payment of $131,38 per employee. In addition to the 1 t)0 Pmployees formerly housed at the Sunbird Lodge, the commercial elements of the Arabelle Project generate an additional .l8 employees for mitigation purposes, Therefore, $I3,162,149.30 (100.18). Tre residential uni:, Ore governed by the inclusionary Zoning requirements. These require Vail .Resorts to provide 10;0 of the residential square footage for employee housing ~~~hich is subject to a iniitg;itiori payn-,mot at tl~e rate of $?36.65 per square foot. Since the Arabelle Project includes 17t5,7Rb square feet of residential space, the mitigation payment will be a4,1233,o40.u`9 (.10°/u X 176,678 X $23b.65). The combination of td:e residential and cor=~merci;~I mitigation payments total $17'3't5~789•9y The Town is prepared to accept that sum in satisfaction of Vail Resorts' obligation. These funds will be used to provide em Io ~e housing for persons employed in the Tativn including Vail Resorts employees in a ocation to be determined by the Town. Payrlent of the fee-in-lieu will be required prior to issuance of any certificate of occupancy for the Arrubella Project. If Vail Resots chooses to propose an option different than those outlined above, a "plan" that clearly identifies a solution should be submitted to the Town Council for consideration. The Town Council has directed that this issue be resolved as soon as possible and that any amendment to the Core Site Development Agreement be presented to them at their meeting on October 2, 20G7. I look forward to discussing this matter with you in grater detail, but any discussions must be conducted as soon as possible. ~ lY, Ii t ey Zeinler 1VlanagLr Town of Vail CC: Vail "I~own Council Rob Katz, Vail Resorts President VAIL R ESO R TS' lu.t ;\n~;iL•cr Gay In Par:uli:.e' October 1 C, 2007 Mr. Stanley Zernier Timber Ridge Affordable Housing Corporation c!o Town of Vail 7~ South Frontage Road West - _ _- _ -_ Vail, Colorado ~16~7 _ _____- _ - ---------.____-- _-- _ RE: LETTER OF INTENT-1280 NORTH FRONTAGE ROAD, VAIL, COLORADO 81657 Dear Stan: This Ieiaer shall serve as a (``Letter of Intent") which purpose is to outline the general term; under which Lessee would enter into .final negotiations with Lessor to draft a 99 year ground lease ("Lease") for the Property described above and under which the Town of Vail ("TOV") will waive the condition precedent to granting a certiFcate of temporary occupancy far the ArabelIe development (the ``Arrabeile TCO") related to .Lessee's employee housing obligation. The preliminary conditions are as follows: 1. Lessee: The Vail Corporation dba Vail Associates, Inc. or its affiliates or assigns. 2. Lessor: Timber Ridge Affordable Housing Corporation ("TRAHC"), or the correct vested entity; 3. Property: Timber Ridge Village Apartment Site located at 1280 North Frontage Road, Vail Colorado, 81657 containing approximately 10.08 acres more or less including all appurtenances there to and interests therein, .subject to TRAHC's election to witl^ihold 2r'7tl-is of the property as depicted on the Phasing Pian, at*achF~~d hereto and incorporated by this rPferonce as Exhibit A. 4. Lease Payments: The total of alI payments due under the 99 year lease would total Twenty-two h~lillion Dollars ($22,000,040.40) ti;~hich sum would be paid up front upon execution of the mutually acceptable Lease, subject to a reduction equal to the sum of $6,285,714 and the estimated common infrastructure costs for the Property in the event TRAHC elects to withhold a 2! 7ths portion of the Property from the leased area. S. Earnest Money Deposit/Employee Housing Obligations: Upon mutual execution of this Letter of Intent, Lessee will deposit with Land Title Guarantee Company Three and One Half Million Dollars (~3,SOO,000.00) (`'Earnest IVToney"). The Earnest Money shall secure Lessee's obligations to satisfy its employee housing obligation to the TOV related to the Arrabelle project, either through the execution of the Lease or through other means, as provided below. Upon execution of this Letter of Intent and Lessee's deposit of the Earnest Money, the TOV will remove the employee housing condition precedent to the Arrabelle TCO, provided however that Lessee's obligation to provide such employee housing will remain outstanding. / _~~+' f~ ,~miex BRECKENR!DGE O SKI RESORT KEYSTO(dE' ~ (c~ EOeavenly. .eta=~~ P ' co~nxAOO ..., ,..., ~ R OCK ESORTS Gonga+ry- Vail Resorts Management Company Post Office Box 959 137 Benchmark Road Avon, Colorado 81620 Upon TOV's execution of the Lease and the payment by Lessee of the Lease Payment, the Earnest '~~foney, with interest thereon, shall be returned to Lessee and all of Lessee's employee housing obligations related to Arrabelle, Front.Door and the Ritz project, shall be deemed fully satisfied (the "Lessee Housing Obligation"). The TOV and Lessee agree to work in good faith f`r 120 days to see if a development plan relating to the property can be agreed to by both parties as a condition precedent to the execution of the Lease. t,t any time after such. time period, the TOV may provide Lessee written notice ("Termination Notice") that it has determined that a mutually agreeable development plan cannot be reached and can terminate discussions regarding the Lease. The TCV and Lessee agree to work in good faith for a period of 180 days after ,the date of the Termination 1`lotice ("Discussion Period") to reach an ---agreeablz -ajtei~native -plan- ("Alternaiive -Plan")- to-allow- -Lessee- to -satisfy- the -Lessee- Heusing -- --- - _ _ Obligation. The TOV agrees that at any time after receiving the Termination Notice, Lessee may satisfy its Lessee Housing Obligation through the payment to the TOV of a "fee in lieu" in the amount of $17 millior. (the "Fee In Lieu") or by purchasing 140 deed restricted beds in the TOV (the ``Employee Housing Purchase"); rovided, however, that the parties expressly acknowledge that the foregoing grant of such right does not relieve the TOV and Lessee to work in good faith to identify an Alternative Plan. At any time durir_g the Discussion Period, upon the TOV and Lessee reaching agreement regarding an. Alternative Plan or upon Lessee paying the Fee In Lieu or completing the Employee Housing .Purchase, the Ea.~nest Money will be returned to the Lessee, wiih interest thereon. If at the end of the 1$0 day period, no Alternative Plan has been agreed to, the Lessee has not paid the Fee In Lieu or completed the Employe Housing Purchase, the Earnest IVloney shall be distributed to the TOV, including interest Thereon and the Lessee Employee Housing Obligation shall remain outstanding. 6. Lessor's Contracts, Studies, Reports and Survey: Within five (5) days of mutual execution of this Letter of Intent, Lessor shall make available to Lessee for inspection all materials in Lessor's possession, including but not limited to: (a) any existing surreys cf the property; (b) any and all soils reports, .reports pertaining to hazardous materials, government permits, Iicenses approvals and si+,nificant correspondence, {c} any and all easements, regardless of purpose or use, associated with the Property or any development approvals thereto; (d) any studies or other reports or information in the possession of or available to Lessor which pertain in any way whatsoever to the Property; (e) all architectural and engineering documents; (f) analysis of current covenants or deed restrictions; 7. Contingencies: During the time during which the Town of Vail has Lessee's Development Plan under review (the "Plan Approval Period''), Lessee shall satisfy itself as to the following: (1) the physical condition of the Property including environmental, hazardous conditions, zoning and all other such aspects; (2) all contracts, studies, surveys and all other information pertinent to the operation and ownership of the Property; ("3) the corr~mitment for title insurance obtained by Lessor; and (4) any other studies and reviews Lessee chooses to conduct and Lessor .shall provide access to the property for these purposes. Lester uflntent -Timber Ridge l illage Apartment Site, I ~ 80 ;~lorth Frontage Road, bail, Colorado 81557 2 8. Development Plan Option: * Approximately 1200 employee beds at full site buildout (VA is prepared to build out the site but upon feedback from the Town understands the Town may prefer to retain ownership of ~~ 7`h of the site, build and retain ownership of the remaining beds) * Surface parking * Laundry Facilities * - Common congregation rooms * Rental and possibility cf deed-restricted for-sale units * Improvement of can ent bus stop * On-site open space with pedestrian connection to off-site open space * Mixture of 2, 3, and 4 bedroom units to contain 4 beds, 2 baths, kitchen, and living - - - -_ - - -- -. _..- -- -- -space.-- ~-- - - - * 4 story structures * 7 buildings * Building Height 42'-45'. * Steel/concrete construction with anticipated life cycle of 50 years * Each unit to be approximately 1,200 st: * 420 total parking spaces provided Construction Plan: * Anticipated Project Phasing. -Phase I -Construct approximately 672 new beds while leaving between 216 and 264 existing beds online, of which 140 employee beds will fulfill the commitment by Lessee's affiliates to build employee beds for The ArrabelIe at Vail Square (20 beds plus 100 replacement beds for Sunhi:°d), Ritz-Carlton Residences, Vail (10.27 beds) and Tl-~e Chalets at the Lodge at Vail aka Vail's firont Door (J) . e -Phase II -Construct approximately 168 beds. Proposed Phase I Schedule -F~egin demolition 5,'15/2008. -Receive building permit 7/1/2008 -1st building (approximately 168 beds) delivered 8/15/2009 -Remaining buildings in Phase I completed by 1 1/15/2009 * All incremental expenses to be paid by the Town and at the Town's option we would build the remaining 2/7 beds with the Town paying for 2/7`h pro-rata share of infrastructure. Town acknowledges that it will receive an estimate for the pro-rata costs prior to construction and al] reimbursement of such costs actually incurred, whether greater or Less than the estimate will be made pursuant to the terms set forth in the Lease. Regardless of whether Town builds on its 2/7ths of the Property it shall be required to reimburse its pro-rata portion of the costs for the infrastructure. 9. Entitlements: * 1st submittal to TOV 12/15/2007. * All approvals required to be received from TOV 3/112008. * Submit for building permits 4/1/2008. (85% Construction Documents) * Receive building permits 6/15/2008. 10. Experience: To provide some insight as to our team's experience, we have been involved in the following similar projects. • OZ Architecture has designed and successfully executed a number of similar projects such as: o Sky Chutes Lodge, Copper Mountain, CO o Keystone Reson, Keystone, CO o Sheraton's Mountain Vista, Avon, CO - - - - - - - - - - -_ -. -- -- - - - o - -w'herry~Iousing-at-Lowry Air Force Base; aurora-, CO- _ - - - - - - - - _ _ _ o Grand Canyon National Park, AZ o Hubbell Employee Housing, Apache County, AZ o Yosemite National Park, CA o Wuksachi Village at Sequoia National Park, CA o St. John's Employee Housing, National Park Service, Virgin Islands o Outer Banic Employee Housing, National Park Service, NC o Brunetti Lofts, Denver, Co o Blakz Street Apartments, Denver, Co o Jackson, WY Affordable Housing o '.v:ercy Housing -City Park South o Highlands Garden Village 1~lulti-Family Apartments o Highlands Garden Village Senior Housing o Denver Housing Authority/Globeville Residential Community o Clock Tower Lofts o Buerger Brothers•,~Fireclay Lofts o Chamber Lofts • Swinerion Contractors out of Dem~~er have successfully executed a number Duct 1v00 urits of employee, affordable, and student housing in projects such as: o University of Colorado dormitories, Bouldor, CO o Fort Carson Employee Housing, Fort Carson, CO o Vandenberg Hall at Air Force Academy; Colorado Springs, CO o Thomas Bean affordable housing in Denver, CO o Sky Villa at Orchard Crossing, Denver, CO o university Lofts at University of Denver, Denver, • Keith Fernandez, VRDC President, has successfialy overseen the construction of over 500 units of affordable deed restricted apartment units in both Northern California and . Hawaii. • Thomas Miller, VRDC Project Manager has successfully managed the design, entitlement, and construction process fora 160 bed, 40 unit dormitory at Cochise Community College, Sierra Vista, Arizona; and a 30 unit government subsidized housing project in Phoenix, Arizona Letter of Intent -Timber Riclge Yi/lage Apartment Site, 1280 North Frontage Road Gail, Colorado 81657 4 11. Rental Program: As supported in the detail rental program analysis attached, we anticipate charging from $3?5 to $5~0 per bed, depending on season. This number will obviously- increase with inflatio;~. In response to your expressed concern that beds be made available to employers within the Town of Vail and not just Vail Resorts, please be advised we are willing to stipulate that beds would be made available to these employers as well after Vail faltills its need fcr 650 beds. Additionally, we are amenable to allowing the Housing Authority or some other entity to manage the rental of the units. - - - - -12.--Lease Ezecution~ ~xectttiori of the Lease shah occur titi ithin ten (1-0 j -business- days-from -written- -- ----- -- - notification by Town of Vail to Lessee that the Development Plan has been accepted by the Town without contingency or modification. If the Town of Vail accepts the Development Plan with modif cation er contingency, but Town commits to pay for all incremental costs associated with the modifications or contingencies, then the Lease shall close according to the timeline set forth above. 13. Lessor Cooperation and Obligation: Lessor shall cooperate with Lessee in the satisfaction or removal of contingencies to execution of the Lease. Such cooperation shall include execution of all applications, plans or other required submissions, as well as support of all matters with any public or private agency. Lessor grants Lessee the right to act as Lessor's agent in making applications far permits in those instances where only the Owner of record-of the Property can apply for the same. Lessee shall be entitled, in its exclusive discretion and its sole cost and expense to enter onto the Property prior to Closing to corriplete any and all construction improvements or public facilities required under the development approvals mandated by the applicable governmental agencies. Lessee shall name Lessor as additional insured on any policy of insurance required for the completion of said construction improvements or public facilities and shall further require all contractors to name Lessor as additional insured on any policies of insurance required for same for the period of time in which Lessor rzmains the title holder to the property. Lessor shall also support Lessee's planned development cf the subject project during the entitlement process where appropriate. Lessee shall commence with the development of plans for the site for Lessor's use daring the Plan Approval Period; 14. B~ndi~ag Effect/ Good Faith: It is understood that this Letter of Intent is binding on both the Lessor and Lessee and that tl-~e Lease shall set forth the respective rights, obligations and duties of Lessor and Lessee. All parties acknowledge and agree that it is i;•rperative they work diligently and in good faith to bring this deal to conclusion and time is of the essence; IS. .Acceptance: L'pon Lessor's acceptance of this Letter of Intent, Lessee shall proceed with the .preparation of the Lease which both parties will work diligently to execute within sixty (60) days after Lessor acceptance of this proposal; 16. Exclusivity: From the date of this Letter of Intent until the earlier of the execution of the Lease or tl~e date of a Termination Notice under Section S, Lessor covenants and agrees that it will refrain from accepting offers for the Property from any person other than Lessee; Letter c; Intent -Timber Ridge V!!lage Apartment Site, 7280 North Frontage Road, Gail, Colorado 81657 5 17. Broker Disclosure; Lessee and Lessor acknowledge and agree that neither has dealt with any broker or finder in this transaction and that no broker or finder shall be due any brokerage fees or compensation. 18. Governing Law/ Venue: This Letter of intent shall ,be governed by the laws of the State of Colorado and venue shall be proper in Eagle County, Colorado. I am enclosing here~.vith a copy of the graphic depicting the phasing on the project for further clarification of the plan, the current site, phasing and unit plan, a rental income analysis, construction cost estimates, photos reflecting our anticipated finish level, and overall building statistics. Once you have had an opportunity to review, I am prepared to meet and discuss any additional questions or concerns you may have. If the foregoing is acceptable, please acknowledge by signing below and return this Letter of Intent no later than 5:00 pm on Monday, October 22, 2007 to our office at the address on this letter. Its: Sincerely, THE VAIL CORPORATI~ `VAIL ASSOCIATES, INC. BY: C%Y~'~~~"C KEITH FERNA1riE7. President - Vuil Resorts Development Company, as Authorized Representative AGREED TU AND ACCEPTED this day of , 2007. TIMBER RIDGE AFFURDABI,E HOLTSING CURPORATION Sy: TO`~~'~1 OF VAIL as its Authorized Agent By Prfinted: ~~pprovicel as to P~-rm: ' tail Resures. ~e /)c~c~lrtment `aeu: ~~-L7!E S i CP~CEL ~atr: ,(U/~~_ Letter oJlntent -Timber Ridge Village Apartment Sile, 1180 North Frontage Road, 6'ail, Colorado 81657 6 VAIL RESORTS' J.r,t .1,;nthrr D.:y Irt P;rr:.l:~t' v '.;~? Ili G~ -•L p~ October 2-1, 2007 ~Ir. Stanley Zemler Timber Ridge Affordable Heusine Corporation c;'o To~cn of Vail 7~ South Frontage Road Nest Fail, Colorado 816 7 RE: L;vTTER OF INTENT -12$O NORTH FRONTAGE ROAD, ~'.-+,IL, COLOR,~DO $167 Dear Stan: This letter shall serve as a letter of intent ("Letter of Intent") which purpose is to outline the general terms under which Lessee would enter into final negotiations with Lessor to draft a 99 year grour_d lease ('`Lease") for the Property described above and under which the Town of Vail (``TOV") will wai~:•e the condition precedent to granting a cenitacate of temporary occupancy for the Arrabelle ~:nd Front Door developments (the "Arrabelle and Front Door TCOs") related to Lessee's ern lovee housing oblinat.on. The preliminary conditions are as follows: p 1. Lessee: The Vail Corporation dba Vail Associates, Inc. or its afriliates or assigns. 2. Lessor: Timber Ridge Affordable Housing Corporation ("TRAHC"), or the correct vested entit ~• y, 3. Property: Timber Ridge Village Apartment Site located at 1280 North Frontage Road, Vail Colorado, 81657 containing approximately 10.08 acres more or less includin all a to and interests therein, subject to TRAHC's election to withhold 2/7ths of the property as dep~ctedeon thu Phasing Plan, attached hereto and incorporated by this reference as E~thibit A. 4. Lease PaymeJ'zts: The total of all payments due under the 99 year lease would total Twenty-two Million Dollars ($22,000;000.00) which sum would be paid up front upon execution of the mutually acceptable Lease, subject to a reduction equal to the sum of $6,285,7I-1 and the estiirated common infrastructure cost; for the Property in the event T'RAHC elects to w-itlLhold a 2/7t:is portion of the Property from the leased area. S. Earnest 1Lloney Deposit/Efnployee Housing Obligations: L'pon mutual execution of this Letter of Intent, Lessee will deposit with Land Title Guarantee Company Seventeen 1~lillion Dollar ($17,000,000.00) in the form of a Later of Credit ("Earnest Nlone s secure Lessee's obligations to satisfy its employee housing obligat on t Tthe TOVsretated tos thel Arrabelle and Front Door projects, either through the execution of the Lease or through other means as provided• below. upon execution of this Letter of Intent and Lessee's deposit of the Earnest 1~Ionev the TOV will remove the employee housing condition precedent to the Arrabelle and Front ' Door COs, provided however that Lessee's obligation to provide such employee housin will re outstanding. g mdin riil~ O Lflre~ ~ SKI RESO~~E 11~IJI ONE ~(/ N®aven/~[ ~ (~ 'r,~g~„ ••.• •. R~CKRESORTS' ~7~4eyrCarn~iy Vail Resorts Management Company Post Office Bcx 959 137 Benchmark'Road Avon, Colorado 81620 w Upon 1-OV's execution of the; Lease and the payment by Lessee of the Lease Payment, the E:arnotit i/loncy, shall be returned to Lessee and all of Lessee's employee housing obligations related. to Arrabollc, Front Door and the Ritz project (the ``Lessee I-Iuusing Obligation"), shall bo deemed fully satisfied. The TOV and Lessee agree to ~vorl: in good faith for 60 days to see if a development plan relating to the property can be agreed to by bcth parties as a condition precedent to the execution of the Lease. At any time after such time period, the TOV may provide Lessee written notice ("Termination Notice") that it has determined that a mutually agreeable development plan cannot be reached and c::n terminate discussions regarding the Lease. The TOV and Lessee agree to work in good faith for a period of 180 days after the date of the Termination Notice ("Discussion Period") to reach an agreeable altemative plan ("Alternative Plan'') to allow Lessee to satisfy the Lessee Housing Obligation. The TOV agrees that Lessee may satisfy its Lessee Housing Obligation through one or more or some combination of the following: (i) agreeing to purchase beds from Opelv'Hillwood if it is awarded the right to redevelop Timber Ridge, (ii) proposing a developr~lent plan for employee housing beds, subject to the reasonable approval of the TOV; (iii) securing an alternative site for the development of the required beds and proposing a plan for such development, subject to the reasonable approval of the TOV, (iv) the payment to the TOV of a "fze in lieu" in the amount of ~ 131,385.OOper bed (the "Fee In Lieu") or (v) by purchasing deed restricted beds in the TOV (the "Employee Housing Purchase). The palsies agree that at any time during the Development Period, Lessee shall be entitled to fulfill and fully satisfy its Lessee Housing Obligation through performance as set .forth in either (iv) GI• (V) above. ~ . If during the Discussion Period, an agreemer+.. regarding an Alternative Plar.(s) is reached or if Lessee has otherwise satisfied its Lessee Housing Obligation as sot forth above; th:, Earnest IVloncy shall immediately be returned to the Lessee. If at the end of the 180 day period, no Alternative Plan has been agreed to by the parties and the Lessee has not otherwise satisfied its Lessee Housing Obligation, the Earnest 1~~loney shall be distributed to the TOV, and utilized as a Fee in Lieu, fully satisfying Lessee's Housing Obligation. 6. Lessor's CoiEtracts, Studies, Reports aced Sau•vey: Within five (~) days of mutual execution of this Letter of Intent, Lessor shall make available to Lessee for inspection all materials in Lessor's possession, including but not limit;,d to: (a) any existing surveys of the property; (b) ary and all soils reports, reports periainin~ to hazardous materials, government perrr~its, licenses approvals and significant correspondence, (c) any and all easements, regardless of purpose cr use, associated with the I .operty or any development approvals thereto; (d) any studies or other reports or information in the possession of or available to Lessor which pertain in any way .whatsoever to the Property; (e) all architectural and engineering documents; (f) analysis of current covenants or deed restrictions; 7. Co~rtingencies: Duri.-Ig the time during which the Town of Vail has Lessee's Development Plan under review (the "Plan Approval Period"), Lessee shall satisfy itself as to the following: (1) the physical condition of the Property including environmental, hazal-dous conditions, zoning and all other such aspects; (2) all contracts, studies, surveys and all other information pertinent to the operation and ownership of the Property; (3) the commitment for title insurance obtained by Lessor; and (4) any other studies and reviews Lessee chooses to conduct and Lessor shall provide access to the property for these purposes. Letter of Intent - T.~mber Ridge Village Apartment Site, 1130 North Frontage Ruad, Gail, Colorado 81657 2 8. Deti~~~lop»>~~nt Plain Option: ~` Al.~proximately 1200 ~Inpluyee beds at full site buildout (VA is prepared to build out the site but upon feedback from the Town und~rstallds the "T'o~i~n may prefer to retain ownership ot:2; 7`~' of the site, build and retain ownership or the remaining beds) * Surface parking '" Laundry Facilities '` Common congregation rooms * Rental and possibility ofdeed-restricted for-sal: * units Improvement of current bus stop * On-site open space with pedestrian connection to oft=site open space * h~lixture of 2, 3, and 4 bedroom units to contain 4 beds, 2 baths, kitchen, and living space. * 4 story structures * 7 buildings I3uiiding Height 42'-45'. * Steeliconcrete construction with anticipated life cycle of 50 years * Each unit to be approximately 1,260 sf. * 420 total parking spaces provided * Constriction Plan: n anticipated Project Phasing. • -Phase I =Construct approxirllately 672 new beds whiie leaving between 216 and 264 existing beds online, of which 140 employee beds will fulfiil the commitment by Lessee's affiliates to build employee beds for The Annabelle at Vail Square (20 beds plus 100 replacement beds for Sunbirdj, Ritz-Carlton Residences, Vail (10.27 beds) and The Chalets at the Lodge at Vail aka Vail's Front Door (9); -Phase II -Construct approximately 163 beds. Proposed Phase I Schedule -Begin d~lnolition 5/1 x/2008. • -Receive building pt;rlTllt 7/1/2008 -1st building (approximately 168 beds] delivered 8/15/2009 -Remaining buildings in Phase I completed by 11/15/20G9 * all incremental expens~;s to be paid by the Town and at the Town's option eve would build the remaining 2.7 beds with the Town paying for 2i 7`~' pro-rata share of infrastructure. Town acknowledges that it will receive an estimate for the pro-rata costs prior to construction and all reimbursement of such costs actually incurred, whether greater or less than the estimate will be made pursuant to the terms set forth in the Lease. Regardless of whether Town builds on its 2/7ths of the Property it shall be required to reimburse its pro-rata portion of the costs for the infrastructure. 9. Entitlements: ~` 1st submittal to TOV 12/15,'2007. * All approvals required to be received from TOV 3/1/2008. Lelte~• of Intent - T.~mber Ridge l'i!lage Aptrrtment Sile, JZdO North Frontage Road, Fail, Colorado .41657 "` Submit !or building permits 4; 1/2008. (8~';'o Construction Uocumrntsj ~'` Receive building permits 6%1;2008. 10. E_ipe~•ience: To provide some lllslght as to our team's e~peri~nce, ~~e have been involved in the follo~.~-in~-~ similar projects. .. ~ OL Architecture has designed and successfully executed a number of similar projects such as: c Sky Chutes lodge, Copper l~~fountain, CO o Keystone Resort, Keystone, CO o Sheraton's Mountain Vista, Avon, CO o Wl?erry Housing at Lowry Air Force Base, Aurora, CO o Grand Canyon National Park, AZ c Hubbell Employee Housing, Apache County, AZ e Yosemite National Parl., CA 0 1~Vuksachi Village at Sequoia National Park, CA o St. John's Employee Housing, National Park Service, Virgin .Islands c Outer Banks Employee Housing, National Park Service, NC o Brunetti Lofts, Denver, Co o Blake Street Apartments, Denv-cr, Co ~~ Jackson, IVY' Affordable Housing 0 1~~Iercy Housing -City Park South o Highlands Garden Village Multi-Family Aparti:lents c Highlands Garden Village Senior Housing o Denver Housing AuthorityiGlobeville Residential Community o Clock Tower Lofts o Buerger Brothers/Fireclay Lofts o Chamber Lofts • S«~inerton Contractors oat of Denver have successfully executed a number over 2000 units of employee, affordable, and student housing in projects such as: o Lniversity of Colorado dormitories, Boulder, CO o Fort Carson Er?-~pioyee Housing, Fcrt Carson, CU o Vanderberg Hall at Air Force Academy, Colorado Springs, CO o Thomas Bean affordable housing in Denver, CO o Sky Villa at Orchard Crossing, Denver, CO o t;'niversity Lofts at university of Denver, Denver, • Keith Fernandez, VRDC President, has successfully overseen the construction of over 500 units of affordable deed restricted apartment units in both Northern California and Hawaii. • Thomas iUliller, VRDC Project Manager has successfully managed the design, entitlement, and construction process fora 160 bed, 40 unit dormitory at Cochise Lever of Intent -Timber Rrdge vi!(age Apartment Site, 1280,'Vorth Frontage Road, Vail, Colorado 81 hS7 4 COI11I71lllllty' College, Sierra Vista, Arizona; and a 30 unit bovcrnmcnt subsidir_ed housing project in Phoenix, .~~rizona I1. Rental P~•o,ra~u: • As supported in the detail rental program analysis attached, w•e anticipate charging from. S~ ~~ to S»0 per bed, depending on szasoll. This number ~viil obviously increase ~vifh inflation. • In response to your expressed concern that b"i5 be made available to employers within the Town of Vail and not just Vail Resorts, please be advised we al-e willing to stipulate that beds would be made available to these employers as well alter Vail fulfills its need for 6~0 beds. Additionally, s~;e are amenable to allowing the Housing Authority or some other entity to manage the rental of the units. 12. Lease E.~:ecution: Execution of the Lease shall occur within ten (10) business days from written notitication by Town of Vail to Lessee that the Development Plan has been accepted by th'. Town without contingency or modification. If the Town of Vail accepts the Development Plan with modification or cents agency, but Town commits to pay for all incremental costs associated with t modifications or contingencies, then the Lease shall close according to the timeline set forth above. h~ l3. Lessor Cooperutron and Obli;ation: Lessor sisal] cooperate with Lessee in the satisfaction or emoval of contingencies to execution of the Lease. Such cooperation shall include execution of ail applications, plans or oth:.r re•~uir~d submissions, as well as support of all matters with any public or private agency. Lessor grants Lessee the right to act as Lessor's agent in making applications for permits in those instances where only the Uwner of record of the Property can apply for the same. Lessee shall be entitled, in its exclusive discretion and its sole cost and expense to enter onto the Property prior to Closing to complete any and all construction improvements or public facilities required under the development approvals mandated by the applicable governmental agencies. Lessee shall name Lessor as additional insured on any policy of insurance required for the completion of said construction improvements or public facilities and shall further require all contractors to name Lessor as additional insured on any policies of insurance required For same for the period of time in which Lessor remoras the title holder to the property. Lessor shall also support Lessee's planned development of the subject project during the entitlement process where appropriate. Lessee sh:~ll commence with the developme~lt of plans for the site for Lessor's use during the Plan Approval Period; I4. Bi~rdu7~ Effect/ Good Faitl:: It is understood that this Letter of Intent is binding Lessor and Lessee and that the Lease shall set forth the respective ri?hts, obligations and dui stof Lessor and Lessee. A11 parties acknowledge and agree that it is imperative they work dill Intl good faith to bring this deal to conclusion alld time is of the essence; g Y and in IS. Acceptance: upon Lessor's acceptance of this Letter of Intent, Lessee shall proceed with the preparation of the Lease which both parties will work diligently to execute within sixty 60 da s Lessor acceptance of this proposal; ~ ) y after Letter oflntent -Timber Ridge I ;~llage Apartment Site, 11oD North Frontage Road, Gail,=Colorado 81657 16. ~:rclrrsivitV: Drum the data of this Letter of lllt~llt until the rarller of the eSl'CLlllOn Ot the I,case or the date of a Termination Notice under Section ~, Lessor covenants and agrees that it ~~~ill retrain from a~l;ClJtltl~ ol•ters tar tho Propc;rty tronl any parson other than Less~~u; 17. Broker Disclosure: Lessee al;d Lessor acknowledge and agree that neither has dealt with any l,roker or finder in this aansaction and that no broker or finder shall b(: due anv brokerage tics er compensation. 13. Governi,rg La)v/ i~e,iire: This Letter of Intent shall be governed by the laws n(' (11F, Cratr~ of (.'olorado and venue shali be proper in Eagle County, Colorado. I aln enclosing hcrew;th a copy of the graphic depicting the phasing on the project fcr furth~;r clarification of the plan, the current site, phasing and unit plan, a rental income analysis, construction cost estimates, photos reflecting our anticipated finish level, and overall building statistics. Once you have had an upportunii:y to review, I am prepari;d to meet and discuss any additional questions or concerns you may hove. If the foregoing is acceptable, please acknowledge by signing below and return this Letter of Intent no later than 5:00 pm on Tuesday, October 31, ?007 to our office at the address oli this letter. Sincerely, T(-1E ''AIL C'OP.['OR.1TIOti DBA VAIL ASSOCI.ITES, INC. IIEITH FERVA~\DE'L~ President -Vail Resorts Development Company, as Authorized epresentative AGREED TO AND ACCEPTED this day of 2007. TIMBER i2IDGlE AFFORli3ABL1E ~IOI.~SINC CORPOR=~TIOti E;~: TO~~~~ OF VAIL as its Authorized .gent ~y: Printed: Ia: :~Pproved as to Forth: Utter oJ'Irttnt -Timber Ridge Vi;loge ~lpartrrtent Slte. 1230 North Frorlage Road, Bail, Colorado 81657 Va ~ Ut VE t ~~ ~ ~owxoFV~ ~ _ Office of the Town Attorney ;'~ South Frontage Road L"ail, Colorado 8167 October 30, 2007 970-479-2106 FQ.X 970-4,79-2157 tuww. vailgov. com Fail Resorts Attn: Robert Katz 390 Interlocker Crescent Broomfield, CO. 80021 Re: Response to Letter of Intent, dated October 24, 2007 Dear Rob: This letter responds to your letter of October 24, 2007, in which Vail Resorts offered to lease and redevelop the Timber Ridge property. The letter also proposed certain conditions whereby Vail Resorts could satisfy its Housing Obligation so as to secure - temporary certificates of occupancy for the Arrabelle and Front Door projects. The Town cannot entertain at this time your proposal to lease and redevelop the Timber Ridge property. The Town is cu*rently in negotiations with Open/Hillwood and Lincoln Properties for the redevelopment of Timber Ridge pursuant to the Lionshead Development Improvement Agreement. The Town believes these negotiations may prove useful to the satisfaction of Vail Resorts Housing Obligation; however, the Town- must pursue the negotiations with Open/Hillwood before considering yo-ar proposal. The "' ou-n understands the importance of the issuance of temporary certificates of occupancy for the Arrabellle and Front Door projects. Accordingly, the Town would propose the following: • Vail Resorts will deposit a Letter of Credit for ~ 17,000,000. upon deposit of the Letter of Credit, the Town will remove the Housing Obligation as a condition precedent to the issuance of the temporary certificates of occupancy for the Arrabelle and Front Door projects. ~ For a period of 60 days following deposit of the Letter of Credit, Vail Resorts will participate in discussions with the Town and Open/Hillwood to secure employee housing in a redeveloped Timber Ridge. The forn of Vail Resort's participation may take any form that will assure the Town that Vail Resort's Housing Obligation will be satisfied by the construction of new housing units at Timber Ridge. RECYCLED PMER • If tlhe negotiations are successful, the Town will release the Letter of Credit upon satisfaction that the additional housing units will be constructed. • If r_egotiations between the Town and OperU'Hillwood are unsuccessful, the Town will enter into exclusive negotiations with Vail Resorts for a period of 90 days to consider alternative arrangements to satisfy the Housing Obligation. The alternative arrangements will be Limited to redevelopment of Timber Ridge or to development of employee housing at the'~'orti`t Day Lot. If the negotiations are successful, the Town will release the Letter of Credit upon satisfaction that the additional housing units will be constructed. upon satisfaction that the additional housing units will be constructed. • If the exclusive negotiations with Vail Resorts are unsuccessful, the Letter of Credit will be cashed by the Town and Vail Resorts will be released from the Housing Obligation. If the foregoing principles are acceptable to you, a formal agreement should be prepared for consideration and approval by tl-le Town Council. SIG\ED: Stan Zemler Enclosures LETTER TO ROB KATZ Re: Response to Letter of Intent, dated October 24, X007 Dear Rob: This letter responds to your letter of October 24, ?007, in which Vail Resorts offered to lease and redevelop the Timber Ridge property. The letter also proposed certain conditions whereby Vail Resorts could satisfy its Housing Obligation so as to secure temporary certificates of occupancy for the Arrabelle and Front Door projects. The Town cannot entertain at this time your proposal to lease and redevelop the Timber Ridge property. The Town is currently in negotiations with Open/Hillwood and Lincoln Properties for the redevelopment of Timber Ridge pursuant to the Lionshead Development Improvement Agreement. The Town believes these negotiations may prove useful to the satisfaction of Vail Resorts Housing Obligation; however, the Town must pursue the negotiations with Operv'Hillwood before considering your proposal. The Town understands the importance of the issuance of temporary certificates of occupancy for the Arrabellle and Front Door projects. Accordingly, the Town would propose the following: • Vail Resorts will deposit a Letter of Credit for ~ 17.000,000. L'pon deposit of the Letter of Credit, the Town will remove the Housing Obligation as a condition precedent to the issuance of the temporary certificates of occupancy for the Arrabelle and Front Door projects. • For a period of 60 days following deposit of the Letter of Credit, Vail Resorts will participate in discussions with the Town and Open/Hillw•ood to secure employee housing in a redeveloped Timber Ridge. The.form of Vail~Resort's participation may take any form that will assure the Town that Vail Resort's Housing Obligation will be satisfied by the construction of rew housing units at Timber Ridge. • If the negotiations ara successful, the Town will release the Letter of Credit upon satisfaction that the additional housing units will be constructed. • If negotiations between the Town and Open,'Hillwood are unsuccessful, the Town will enter into exclusive negotiations with Vail Resorts for a period of 90 days to consider alternative arrangements to satisfy the Housing Obligation. The alternative arrangements will be limited to redevelopment of Timber Ridge or to development of employee housing at the North Day Lot. If the negotiations are successful, the Town will release the Letter of Credit upon satisfaction that the additional housing units will be constricted. upon satisfaction that the additional housing units will be constructed. • If the exclusive negotiations with Vail Resorts are unsuccessful, tre Letter of Credit will bz cashed by the Town and Vail Resorts will be released from the Housing Obligation. If the foregoing principles are acceptable to you, a formal agreement should be prepared for consideration and approval by the Town Council. SIGNED: Stan Zemler 1 +~ i 1 s, : ' ~ ' .. . i 4 , ,. , ... ~ ;: .i ..'. I .., 1 "-;.: . : . ' n! 3 ~ t t I y ';: ( . ~ .. ~ 1 4 ~ i \.,l . S . .~. . t .. `.. ..~ .. ..., , ,. ..: ~ ~ ~,. _ ~-.... .~. .. i.. ..... . . .,.. P ... _. ... 1. ~ ... ~. ,~ .. ._ ~ _.. .. .. e., -'• ~ ` . I .... i._ '. . , l . . ~ _.. ... ,...... ..,. _, ._ _. ... _ ... _.. .......:i .. .... _.. ... ., . _ .. ; i.~ ......... . _ - ~~ - -_ .,. ~ ..., z. tt'....~ . _ .~ . ~ V . , 1, .. . ~ • . ~ l ,,., l:. t r .' t ,... _ ~. .., , ... ... ~. ,. I . r .. ~! •.., ,.~ .. ' t .. ,..,~.3:..... .. ,. ....~, r. .. ._ _ .t .: , . ~., ~?%.. i. :_~.; '.,: is-: _t' t ~ t..... ,: s .. _ )' 7, .... lw .. .. ..,. _. .. _, .. ..,. .,_ .. ' i _ ,., .. ~, ,.. ,-~ , .. . ~ I ~ , ~ . , ~, .... c .. ..i ,.. .. .,. .._ ..... _... 3 J. .. ' ~. .. ,. ~ . _ r i~'....1 I...... ~ .~, ` ,ice ~-_.. ,.. , .. ~,ia,. ,< :t,.. ..-r :: t.. .... ::., I ',:, , ..}. .'UPI :.: _i. '~_ .,: :.) .`'!~. } {;~ ~ ij. .} ,.. , .. }Z. ..t ... .. .. . .. ... .. ,.., .~ _ ., r ... .. ... ., .. ... 1.., 1-..... .. ~... ..... .. ... .. .~. .. ~., .. a4 ., -. '1."7i ,. .'tiJ.:v' ."'~.J :it .... _... '? ., 1':._ .i:i :. ri' .r,,. :c } ,. ., ~ I- ~ t r _ _.. , . . Il. ... . ~, i :1:. ~.. ,~. r.... ..i ...::: 1 .. .:III ~{ ~, i~'f ~.~~_ ...._~~. _:~~._~ _ll ~.~~,. ...~ .. ..., .. _ .... .. .. ... ..i... .i ~_... ,. .:. .S C ..a _~ , . . RESOLUTION N0.28 Series of 2007 A RESOLUTION DEFERRING THE REGULAR MEETING OF THE VAIL TOWN COUNCIL, PURSUANT TO SECTION 1-5-11 OF THE VAIL TOWN CODE, FROM JANUARY 1 TO JANUARY 8, 2008 AND FROM JANUARY 15 TO JANUARY 22, 2008; AND SETTING FORTH DETAILS IN REGARDTHERETO. WHEREAS, The Town of Vail (the "Town"), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the 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, Pursuant to Title 1, Chapter 5, Section 11, Vail Town Code Regular and Special Meetings, the council shall meet regularly at least twice monthly at a day and hour to be fixed by the rules of the council; and WHEREAS, Pursuant to Title 1, Chapter 5, Section 11, Vail Town Code, the Council at a regular meeting preceding the regular meeting which will be deferred may defer the regular meeting to a subsequent date not later than one week after the deferred regular meeting date. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Due to the regular meeting of the Town Council being scheduled for January 1, 2008, a national holiday, as such this meeting date shall be deferred and rescheduled for January 8, 2008. Section 2. Due to the regular meeting of the Town Council being scheduled for January 15, 2008 a conflict with the Town's Annual Community Meeting, as such this meeting date shall be . deferred and rescheduled for January 22, 2008. Section 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. Section 4. This Resolution shall be effective immediately upon adoption. INTRODUCED, READ, APPROVED AND ADOPTED This 20th day of November, 2007. Dick Cleveland Mayor, Town of Vail ATTEST: Lorelei Donaldson Town Clerk Resolution No. 28. Series 2007