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HomeMy WebLinkAbout2008-01-08 Support Documentation Town Council Work Session VAIL TOWN COUNCIL WORK SESSION AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 11:00 A.M., TUESDAY, JANUARY 8, 2008 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. Lori Barnes ITEM/TOPIC: (Site Visit) Library tour and programming discussion. (1 hr.) Lunch (30 min.) 2. Nicole Peterson ITEM/TOPIC: (Site Visit) An appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Planning and Environmental Commission's approval, with conditions, of a request for a final review of a conditional use permit, pursuant to Section 12-71-1-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in regard thereto. (PEC07-0066). (25 min.) ACTION REQUESTED OF COUNCIL: Uphold, overturn, or modify the Planning and Environmental Commission's approval, with conditions, of the conditional use permit application pursuant to Section 12-3-3, Appeals, Vail Town Code. BACKGROUND RATIONALE: On November 26, 2007 the Planning and Environmental Commission approved, with conditions, a request for a final review of a conditional use permit, pursuant to Section 12-71-1-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa), by a vote of 5-0-1 (Viele recused). On December 4, 2007, the Vail Town Council "called-up" (i.e. appealed) the Planning and Environmental Commission's action by a vote of 5-1-1 (Rogers opposed, Gordon recused), due to a concern regarding the temporary loss of two accommodation units within the LMU-1 Zone District. STAFF RECOMMENDATION: Staff recommends the Town Council uphold the Planning and Environmental Commission's approval, with conditions of the conditional use permit. 3. Warren Campbell ITEM/TOPIC: PEC/DRB Update. (15 min.) 4. Gregg Barrie RECOMMENDATION: Red Sandstone Playground Renovation Process. (10 min.) ACTION REQUESTED OF COUNCIL: Provide comments and recommendations in regard to the required improvements, design process, budget, and/or schedule. BACKGROUND RATIONALE: The 2008 budget provides funding for the renovation/updating of the Red Sandstone Park playground. The purpose of this Work Session discussion is to: a) Outline the work required for the renovation b) Provide the Town Council with information about the recommended design process c) Discuss the project's budget and schedule d) Gather feedback from the Council STAFF RECOMMENDATION: NA 5. Gregg Barrie ITEMITOPIC: Bighorn park gate discussion. (5 min.) 6. Nina Timm ITEM/TOPIC: A discussion regarding employee housing fees-in- lieu. (20 min.) ACTION REQUESTED OF COUNCIL: Provide staff with direction on the anticipated uses of employee housing fee-in-lieu. BACKGROUND RATIONALE: On April 3, 2007, the Town Council adopted Ordinance Nos. 7 & 8, Series of 2007, establishing Commercial Linkage and Inclusionary Zoning. The ordinances allow for four methods of employee housing mitigation. Fee-in-Lieu is one of the established . mitigation methods. Resolution 10, Series of 2007, established the 2007 fee-in-lieu. Town Council has requested additional information regarding the establishment of the fee-in-lieu as well as anticipated uses of the funds generated. STAFF RECOMMENDATION: None at this time. 7. Scot Hunn ITEM/TOPIC: Chamonix Project Kick-off. (60 min.) ACTION REQUESTED OF COUNCIL: Review outline of proposed project schedule, goals and objectives. Establish expectations and parameters for the project. And, appoint 0/"Advisory Committee" to aid Council in steering the master planning process for the Chamonix Site. BACKGROUND RATIONALE: On November 19, 2007, following the review of proposals and the conduct of interviews with consultant teams interested in providing master planning, architecture and cost estimation services to the Town for the development of a fire station and employee housing on the Chamonix Site, Staff conducted a meeting with the Chamonix Site Master Plan "Selection Committee", comprised of Town Staff and citizens, to select a preferred consultant team. At this meeting, the committee recommended that the Town contract with Stan Clauson Associates, Studio B Architects, Drexel Barrell Engineering and Fenton Construction (the "Consultant Team") to aid in the Chamonix Site Master Plan project. Town Staff has since entered into negotiations with the Consultant Team in anticipation of executing a contract for services by January 8, 2008. The purpose of the "Kick-off" meeting will be to: 1) Introduce the Consultant Team to the Council and to present a brief overview of relevant, regional work by the Team (power point presentation); 2) Discuss previous master plan efforts and current opportunities for the Chamonix Site; 3) Discuss and clarify goals, objectives and "parameters" for the project; 4) Establish expectations for project and roles of Council, Staff and Advisory Committee; and, 5) Appoint representatives to the Advisory Committee. 8. Glenn Porzak ITEM/TOPIC: Settlement Agreement w/the Denver Water Board. Bob Warner (30 min.) Steve Friedman Local water providers have long opposed water rights held by Denver Water throughout Eagle County. Eagle River Water & Sanitation District and Upper Eagle Regional Water Authority reached a Settlement Agreement with Denver Water on November 28, 2007 that resolved two cases before the Water Court challenging Denver's diligence on water rights acquired in the 1950's, 60's and 70's. The settlement resulted in the abandonment of 35 separate on-stream diversion structures, 53 miles of interconnecting tunnels and 22 miles of conduit, thereby leaving 5750 cfs (cubic feet per second) of direct flow water rights in local streams and rivers. 9. George Ruther ITEM/TOPIC: LionsHead Redevelopment Master Plan Discussion in regard to North Day Lot. (30 min.) 10. Pam Brandmeyer ITEM/TOPIC: Ford Amphitheatre Orchestra Pit Rebate of Building Permit Fees. (5 min.) The Vail Valley Foundation is requesting a rebate of the following fees, which fees have already been paid to the Town of Vail. Past Councils have granted exemptions to the Betty Ford Alpine ,. i' .Z Gardens, The Ford Amphitheatre and the Vail Recreation District for public enhancements and capital projects. If Council is willing to exempt these fees, staff would return w/the exemptions in the first supplemental for 2008 and rebate the fees to the Foundation. Permit Fee $3,093.75 Plan Check Fee $2,010.93 These are based on a valuation of $400,000 for the building. Additionally, there will be one more fee: Electrical Permit Fee $1,552.50. This is based on $75,000 for electrical, thus bringing the total to: $6,657.18. 11. ITEM/TOPIC: Information Update. (15 mina) • Steep Slope Construction Guidelines. • Bravo! Vail Valley Update. Bravo's board of directors has endorsed negotiations w/the London Symphony for the summer season of 2010. • Bald Mountain homeowner's concerns; w/sand storage, light pollution. 12. ITEM/TOPIC: Matters from Mayor & Council. (10 min.) 13. ITEM/TOPIC: Adjournment. (4:15 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, JANUARY 22, 2008 IN THE V'AIL TOWN COUNCIL CHAMBERS. A MEMORANDUM TO: Vail Town Council FROM: Department of Community Development DATE: January 8, 2008 SUBJECT: An appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Planning and Environmental Commission's approval, with conditions, of a request for a final review of a conditional use permit, pursuant to Section 12-71-1-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in regard thereto. (PEC07-0066) Appellant: Vail Town Council Planner: Nicole Peterson 1. SUBJECT PROPERTY The subject property (Vail Marriott Mountain Resort and Spa) is located at 714 West Lionshead Circle / Lot 1, West Day Subdivision. II. STANDING OF APPELLANT Pursuant to Section 12-3-3, Appeals, Vail Town Code, the Vail Town Council has standing to "call- up" any action taken by the Planning and Environmental Commission. III. REQUIRED ACTION The Vail Town Council shall uphold, overturn, or modify the Town of Vail Planning and Environmental Commission's approval, with conditions, of a request for a final review of a conditional use permit, pursuant to Section 12-7H-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in regard thereto. Pursuant to Sub-section 12-3-3-C5, Vail Town Code, the Town Council is required to make findings of fact in accordance with the Vail Town Code: "The Town Council shall on all appeals make specific findings of fact based directly on the particular evidence presented to it. These findings of fact must support conclusions that the standards and conditions imposed by the requirements of this title (i.e. Title 12, Zoning Regulations, Vail Town Code) have or have not been met." IV. BACKGROUND On November 26, 2007 the Planning and Environmental Commission approved, with conditions, a request for a final review of a conditional use permit, pursuant to Section 12-7H-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa), by a vote of 5-0-1 (Viele recused). For a complete description of the conditional use permit application, 10, please refer to the attached Staff memorandum to the Planning and E=nvironmental Commission, dated November 26, 2007 (Attachment A). The minutes of the November 26, 2007 Planning and Environmental Commission meeting are attached for reference (Attachment B). On December 4, 2007, the Vail Town Council "called-up" (i.e. appealed) the Planning and Environmental Commission's action by a vote of 5-1-1 (Rogers opposed, Gordon recused), due to a concern regarding the temporary loss of two accommodation units for the proposed real estate office use. An excerpt, from the Council's December 4, 2007, hearing highlights, has been attached for reference (Attachment C). According to the applicant, Robert Foss on behalf of Diamond Rock Hospitality Company, the two accommodation units are currently, rarely occupied. There are 346 total accommodation units in the Marriott Hotel. The location, of the two accommodation units, was chosen because of the close proximity to the adjacent Ritz-Carlton construction site. The Ritz-Carlton units, under construction, are visible from the balconies of the subject units, rooms 605 and 607. The proposed real estate office use is temporary. The Planning and Environmental Commission's approval included the following condition regarding the temporary office use: This conditional use permit, for a temporary business office (real estate office), shall lapse and become void 3 years from the date of approval or at the time of the Temporary Certificate of Occupancy issuance for the Ritz-Carlton; currently under construction at 728 West Lionshead Circle, whichever occurs first. Within 30 days from the ceasing date, the applicant shall complete the restoration of the two accommodation units (rooms 605 & 607) to their original form. In response to the Council's concern of lost sales tax revenue, as a result of this temporary office use, Staff requested aggregate data regarding annual sales tax collected in Vail. The following figures are averages based on information collected from 2005-2007 surveys of 17 hotels in Vail. Aggregate data was used because specific revenue figures are confidential. Therefore, the following figures are purely estimates of the lost sales tax revenue as a result of the temporary office use. • The average nightly hotel rate (AHR) charged in Vail = $235 • The average annual hotel occupancy rate (AHO) in Vail = 48.5% • Annual average revenue per room (ARR) in Vail= $41.600 (AHR x 365 dys/yr x AHO) • Annual average sales tax collected per room (ATR) in Vail := $1.664 (ARR x 4%) • Annual average sales tax lost by temporary removal of 2 accommodation units in Vail = $3.328 (ATR x 2 rooms) • Total sales tax collected from lodging in 2006 = $5,413,774.00. Annual percentage of sales tax lost by temporary removal of 2 accommodation units = .06% V. APPLICABLE REGULATIONS OF THE TOWN CODE Chapter 12-3, Administration and Enforcement (in Dart) Section 12-3-3: Appeals (in part): C. Appeal Of Planning And Environmental Commission Decisions And Design Review Board Decisions: 9. Authority: The Town Council shall have the authority to hear and decide appeals from any decision, determination or interpretation by the Planning and Environmental Commission or the Design Review Board with respect to the provisions of this Title and the standards and procedures hereinafter set forth. 2 2. Initiation: (in part) The Town Council may also call up a decision of the Planning and Environmental Commission or the Design Review Board by a majority vote of those Council members present. 5. Findings: The Town Council shall on all appeals make specific findings of fact based directly on the particular evidence presented to it. These findings of fact must support conclusions that the standards and conditions imposed by the requirements of this Title have or have not been met. VI. STAFF RECOMMENDATION The Community Development Department recommends the Vail Town Council upholds the Planning and Environmental Commission's approval, with conditions, of a request for a final review of a conditional use permit, pursuant to Section 12-71-11-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in.regard thereto (PEC07-0066). Should the Vail Town Council choose to uphold the request, the Community Development Department recommends the following motion: "The Town Council upholds the Town of Vail Planning and Environmental Commission's approval, with conditions, of a request for a final review of a conditional use permit, pursuant to Section 12-7H-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in regard thereto (PEC07-0066)." Should the Vail Town Council choose to uphold the request, the Community Development Department recommends the following findings: "The Town Council finds: 1. The request was submitted in accordance with Chapter 16, Conditional Use Permits, Vail Town Code; 2. That the proposed location of the business office (real estate office) is in accordance with the purposes of this title and the purposes of the Lionshead Mixed Use 1 (LMU-1) District; 3. That the proposed location of the business office (real estate office) and the conditions under which it will be operated or maintained will not be detrimental to the public health, safety, or welfare or materially injurious to properties or improvements in the vicinity, 4. That the proposed business office (real estate office) will comply with each of the applicable provisions of this title, based upon the review outlined in section VI of Staff's November 26, 2007 memorandum to the Planning and Environmental Commission; and 5. The conditions of the approval by the Planning and Environmental Commission on November 26, 2007 are in effect." VI1. ATTACHMENTS A. Planning and Environmental Commission November 26, 2007, memorandum B. Minutes of the Planning and Environmental Commission November 26, 2007 meeting C. December 8, 2007, Town Council Work Session highlights (excerpt) D. Public Notice 3 MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: November 26, 2007 Attachment A SUBJECT: A request for a final review of a conditional use permit, pursuant to Section 12-7H-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in regard thereto. (PEC07-0066) Applicant: Diamond Rock Hospitality Company, represented by Robert Foss Planner: Nicole Peterson SUMMARY The applicant, Diamond Rock Hospitality Company, represented by Robert Foss, Agent for Ritz-Carlton Development Co., is requesting a conditional use permit, pursuant to Section 12- 7H-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle. Based upon Staffs review of the criteria outlined in Section VI of this memorandum and the evidence and testimony presented, the Community Development Department recommends approval, with conditions, of this request subject to the findings and conditions noted in Section VII of this memorandum. II. DESCRIPTION OF THE REQUEST The applicant, Diamond Rock Hospitality Company, represented by Robert Foss, Agent for Ritz-Carlton Development Co., is requesting a conditional use permit to allow the conversion of two existing hotel rooms, on the sixth floor, of the western most wing, of the Vail Marriott Mountain Resort and Spa (714 West Lionshead Circle), to a real estate office for the Ritz- Carlton currently under construction at 728 West Lionshead Circle. The Ritz-Carlton intends to occupy the proposed real estate office for marketing and sales purposes. The proposed Ritz- Carlton completion date is scheduled for July 2010. A vicinity map (Attachment A), the applicant's request (Attachment B), and plans (Attachment C) have been attached for reference. III. REVIEWING BOARD ROLES Order of Review: Generally, conditional use permit applications will be reviewed by the Planning and Environmental Commission, and then any accompanying design review application will be reviewed by the Design Review Board. Planning and Environmental Commission: The Planning and Environmental Commission is responsible for final approval, approval with modifications, or denial of a conditional use permit application, in accordance with Chapter 12- 16, Conditional Use Permits, Vail Town Code. Design Review Board: The Design Review Board has no review authority over a conditional use permit application. However, the Design Review Board is responsible for the final approval, approval with modifications, or denial of any accompanying design review application. IV. Town Council: The Town Council has the authority to hear and decide appeals from any decision, determination, or interpretation by the Planning and Environmental Commission and/or Design Review Board. The Town Council may also call up a decision of the Planning and Environmental Commission and/or Design Review Board. ZONING AND LAND USE Zoninq: Subject Property: Lionshead Mixed Use 1 (LMU-1) District Surrounding: West - Lionshead Mixed Use 1 (LMU-1) District East - Lionshead Mixed Use 1 (LMU-1) District North - Lionshead Mixed Use 1 (LMU-1) District South - Lionshead Mixed Use 1 (LMU-1) District Land Use Desiqnation: Subject Property: Lionshead Redevelopment Master Plan (Vail Marriott Mountain Resort and Spa) Surrounding: West - Lionshead Redevelopment Master Plan (Ritz-Carlton under construction) East - Lionshead Redevelopment Master Plan (Lions Square Lodge) North - Lionshead Redevelopment Master Plan (Vail Spa) South - Lionshead Redevelopment Master Plan (Antler's and Gore Creek Residences under, construction) Parking: Required: Proposed Office (940 so: 2.5 (2.7 per 1,000sf) Existing 2 Accommodation Units: - 1.4 (0.7 per unit) Total Required: 1.3 Proposed: Designated at Holy Cross Lot: 2 parking spaces Emnlovee Generation and Mitigation.Rates: Required Fee: $89,184.14 Please see Attachment D for calculations, Attachment E for Ordinance 7, Series of 2007 regarding the adoption of Chapter 23, Commercial Linkage, Attachment F for Ordinance 8, Series of 2007, regarding Commercial Linkage and Attachment G, Resolution 10, Series of 2007 regarding payment of fees-in-lieu. 2 V. APPLICABLE PLANNING DOCUMENTS A. Title 12 Zoning Regulations, Vail Town Code Section 12-7 Article H Lionshead Mixed Use 1 (LMU-1) District: 12-7H-1: PURPOSE. The Lionshead Mixed Use 1 District is intended to provide sites for a mixture of multiple-family dwellings, lodges, hotels, fractional fee clubs, timeshares, lodge dwelling units, restaurants, offices, skier services, and commercial establishments in a clustered, unified development. Lionshead Mixed Use 1 District, in accordance with the Lionshead redevelopment master plan, is intended to ensure adequate light, air, open space and other amenities appropriate to the permitted types of buildings and uses and to maintain the desirable qualities of the zone district by establishing appropriate site development standards. This zone district is meant to encourage and provide incentives for redevelopment in accordance with the Lionshead redevelopment master plan. This zone district was specifically developed to provide incentives for properties to redevelop. The ultimate goal of these incentives is to create an economically vibrant lodging, housing, and commercial core area. The incentives in this zone district include increases in allowable gross residential floor area, building height, and density over the previously established zoning in the Lionshead redevelopment master plan study area. The primary goal of the incentives is to create economic conditions favorable to inducing private redevelopment consistent with the Lionshead redevelopment master plan. Additionally, the incentives are created to help finance public off site improvements adjacent to redevelopment projects. With any development/redevelopment proposal taking advantage of the incentives created herein, the following amenities will be evaluated: streetscape improvements, pedestrian/bicycle access, public plaza redevelopment, public art, roadway improvements, and similar improvements. (Ord. 29(2005) § 24: Ord. 3(1999) § 1) 12-7H-4: PERMITTED AND CONDITIONAL USES; SECOND FLOOR AND ABOVE. B. Conditional Uses: The following uses shall be permitted on second floors and higher above grade, subject to the issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Professional offices, business offices and studios. Section 12-16: CONDITIONAL USE PERMITS (in part): 12-16-1: PURPOSE, LIMITATIONS: In order to provide the flexibility necessary to achieve the objectives of this title, specified uses are permitted in certain districts subject to the granting of a conditional use permit. Because of their unusual or special characteristics, conditional uses require review and evaluation so that they may be located properly with respect to the purposes of this title and with respect to their effects on surrounding properties. The review process prescribed in this chapter is intended to assure compatibility and harmonious development between conditional uses and surrounding properties and the town at large. Uses listed as conditional uses in the various districts may be permitted subject to such conditions and limitations as the town may prescribe to ensure that the location and operation of the conditional uses will be in accordance with development objectives of the town and will not be detrimental to other uses or properties. Where conditions cannot be devised to achieve these objectives, applications for conditional use permits shall be denied. 3 12-16-6: CRITERIA; FINDINGS: Listed in section VI of this memorandum. B. Lionshead Redevelopment Master Plan Chapter 2: Introduction Section 2.1 Purpose of the Master Plan This master plan was initiated by the Town of Vail to encourage redevelopment and new development initiatives within the Lionshead study area. Both public and private interests have recognized that Lionshead today lacks the economic vitality of Vail Village, its neighboring commercial district, and fails to offer a world-class resort experience. Lionshead's economic potential has been inhibited by a number of recurrent themes: lack of growth in accommodation units ("hot beds'), poor retail quality, the apparent deterioration of existing buildings, an uninteresting and disconnected pedestrian environment, mediocre architectural character, and the absence of incentives for redevelopment. Redevelopment is critical for Vail and Lionshead if the community is to remain a competitive four-season resort. Other resorts are spending millions of dollars to upgrade their facilities in order to attract more visitors year-round. Growth in the number of skiers annually has slowed to one to two percent, intensifying competition for market share. Skiers are spending less time skiing and more time shopping, dining out, and enjoying other off-mountain activities. As a result, the demand for quality retail shopping and a greater diversity of experiences has dramatically increased. All of these are sorely in need of improvement in Lionshead. Vail, and specifically Lionshead, will fall behind if the community fails to upgrade the quality of its facilities and correct the existing flaws in its primary commercial nodes. This master plan, developed over a period of two years and with extensive involvement by the community, is a comprehensive guide for property owners proposing to undertake development or redevelopment of their properties and the municipal officials responsible for planning public improvements. The plan outlines the Town's objectives and goals for the enhancement of Lionshead and proposes recommendations, incentives, and requirements for redevelopment and new, development of public and private properties. It also recommends specific public improvement projects that are strategically important to the future success of Lionshead. The master plan is intended to provide direction over the next 15 to 20 years. Section 2.3 Policy Objectives The Town Council adopted six policy objectives on November 4, 1996 to outline the important issues to be addressed in the master plan and to provide a policy framework for the master planning process. Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents. Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character. Vitality and Amenities We must seize the opportunity to enhance guest experience and community interaction through expanded and additional activities and amenities such as. performing arts 4 venues, conference facilities,. ice rinks, streetscape, parks and other recreational improvements. Stronger Economic Base Through Increased Live Beds In order to enhance the vitality and viability of Vail, renewal and redevelopment in Lionshead must promote improved occupancy rates and the creation of additional bed base ("live beds" or "warm beds') through new lodging products. Live beds and warm beds are best described as residential or lodging rooms or units that are designed for occupancy by visitors, guests, individuals, or families on a short term rental basis. In order to improve occupancy rates and create additional bed base in Lionshead, applications for new development and redevelopment projects which include a residential component shall provide live beds in the form of accommodation units, fractional fee club units, lodge dwelling units, timeshare units, attached accommodation units (i. e, lock-off units), or dwelling units which are included in a voluntary rental management program and available for short term rental. Further, it is the expressed goal of this Plan that in addition to creating additional bed base through new lodging products, there shall be no net loss of existing live beds within the Lionshead Redevelopment Master Plan study area. Improved Access and Circulation The flow of pedestrian, vehicular, bicycle and mass transit traffic must be improved within and through Lionshead. Improved Infrastructure The infrastructure of Lionshead (streets, walkways, transportation systems, parking, utilities, loading and delivery systems, snow removal and storage capacity) and its public and private services must be upgraded to support redevelopment and revitalization efforts and to meet the service expectations of our guests and residents. Creative Financing for Enhanced Private Profits and Public Revenues Financially creative and fiscally realistic strategies must be identified so that adequate capital may be raised from all possible sources to fund desired private and public improvements. Chapter 4: Recommendations - Overall Study Area (Amended July 18, 2006): This Chapter of the Master Plan addresses issues that affect Lionshead as a whole. These issues, and recommendations to address them, should be considered in all planning and policy decisions as Lionshead redevelops. Section 4.13 Live Beds The maintenance, preservation, and enhancement of the live bed base are critical to the future success of Lionshead and as such, special emphasis should be placed on increasing the number of live beds in Lionshead as the area undergoes redevelopment. The Lionshead area currently contains a large percentage of the Town's overall lodging bed base. The bed base in Lionshead's consists of a variety of residential and lodging products including hotels, condominiums, timeshares and hybrids of all three. The vast majority of live beds in Lionshead are not accommodation units in hotels, but instead, in dwelling units in residential condominiums such as the Vail 21, Treetops, Antlers Lodge, Lion Square Lodge, Lifthouse Lodge, Landmark Tower and Townhomes, Lionshead Arcade, and Montaneros, all of which have some form of rental/property management program that encourages short term rental of dwelling units when the owners are not in residence. It has been the experience in Lionshead that condominium projects which include a voluntary rental management program have occupancy rates which exceed the 5 occupancy rate of hotel products, and therefore tend to provide more live beds and produce more lodging tax revenues to the Town. Applications for new development or redevelopment which maintain, preserve, and enhance the live bed base in Lionshead have a significantly greater chance of approval in the development review process than those which do not. 4.13. Live Bed Definition Pursuant to Policy Objective 2.3.3, live beds (and warm beds) are defined as residential or lodging rooms or units that are designed for occupancy by visitors, guests, individuals, or families, on a short term rental basis. A live bed may include the following residential products: accommodation units, fractional fee club units, lodge dwelling units, timeshare units, attached accommodation units (i.e., lock-off units), and dwelling units which are included in a voluntary rental management program and available for short term rental. 4.13.2 Location of Live Beds Live beds should be located in Lionshead pursuant to the Lionshead Mixed Use 1 and 2 zone districts. All properties within Lionshead, when developing or redeveloping and providing new residential or lodging products, should provide live beds as defined herein. 4.13.3 Hotel-types of Services and Amenities To aid in the furtherance of Policy Objective 2.3.3 of the Plan, the creation of additional live beds should include hotel-types of services and amenities. Such services and amenities may include, but not be limited to, the operation of a front desk, registration/reservation capabilities, recreational amenities, guest drop-off, on-site management, etc. These types of services and amenities in multiple family residential dwellings will increase the likelihood that the dwelling units will be made available for short term occupancy and help to promote improved occupancy rates. 4.13.4 Review of New Development and Redevelopment Projects The Planning and Environmental Commission shall consider the policies and direction given by this Plan with respect to live beds when reviewing new development and redevelopment projects in Lionshead. Applications for new development or redevelopment shall maintain the live bed base in Lionshead. Applications for new development and redevelopment which enhance the live bed base have a significantly greater chance of approval in the development review process than those which do not. A proposal's adherence to the policies contained in the adopted master plan will be one of the factors analyzed by staff, the Planning and Environmental Commission (PEC), the Design Review Board (DRB), and the Town Council (as applicable) in determining whether to approve or disapprove the specific proposal. Chapter 5: Detailed Plan Recommendations This chapter of the Lionshead Master plan examines individual parcels and groups of parcels within the Lionshead study area, excluding the residential properties on the south side of Gore Creek. The intent of this chapter, and the Master Plan as a whole, is to identify important functional relationships and visual objectives within the district and to propose a framework for the long-term redevelopment of Lionshead. The document does not intend to limit or eliminate ideas relating to specific parcels; any proposals consistent with this framework should be considered even if they are not anticipated in this document. Section 5.13: The Marriott (Amended July 18, 2006): 6 With approximately 276 rooms, the Marriott is the largest only supply of hot beds in Lionshead. The single largest structure in Lionshead, it is also very visible, especially from the west. It is consequently a high priority renovation project, and all reasonable measures should be taken by the Town of Vail to encourage and facilitate its enhancement. Specific issues regarding this property are as follows: 5.13:1 Redevelopment or Development of the Parking Structure The best opportunity for new development on the Marriott property is the existing parking structure (figure 5-17). If this site is developed, attention should be given to the relationship between the development, Gore Creek, the Gore Creek recreation path, and the west day lot. Vertical development should step back from the recreation path, and there should be a clear separation (most likely a landscape buffer) between the public space of the recreation path and the private space of the residential units. 5.13.2 Infrll Opportunities There are several tennis courts on the south side of the Marriott. This area presents an opportunity for low-rise infill development that eases the visual and physical transition from the existing structure to the Gore Creek recreation path. 5.13.3 Opportunities for Facade Renovation Exterior renovation of the Marriott is a community priority, but the size and dimensions of the structure present a challenge, and it is unlikely that the architectural design guidelines (see chapter 8) can be fully met. However, this should not discourage exterior renovation, and the Town of Vail Design Review Board should insure that the intent of the guidelines is met. (This is a basic premise of the architectural design guidelines, relevant to all existing buildings in Lionshead.) 5.13.4 West Lionshead Circle in Front of the Marriott Any future development or redevelopment of the Marriott property should include a continuous secondary pedestrian walk on the south side of West Lionshead Circle. A pavement snowmelt system is strongly recommended because of icing problems on the walkway in winter. 5.13.5 Preservation of Existing Accommodation Units The Marriott presently contains 276 short term accommodation units. In addition, the Marriott also contains a restaurant, lounge, spa, and meeting space facilities incidental to the operation of the hotel. Given the importance and need for short term accommodations to the vitality and success of the community, any future redevelopment of the site shall ensure the preservation of short term accommodation units on the site. The preservation of short term accommodations should focus on maintaining the number of existing hotel beds and the amount of gross residential square footage on the site as well as requiring the preservation of 276 accommodation units. With this in mind, the quality of the existing accommodation unit room could be upgraded and the rooms could be reconfigured to create multi-room suites. In no instance, however, should the amount of gross residential floor area devoted to accommodation units be reduced. In fact, opportunities for increasing the number of accommodation units beyond the existing 276 units already on-site should be evaluated during the development review process. For example, the construction of "attached accommodation units", as defined in the Zoning Regulations, could significantly increase the availability of short term rental opportunities within the building. 7 VI. REVIEW CRITERIA AND FINDINGS A. Title 12 Zoning Regulations, Vail Town Code The following review criteria and findings for a Section 12-16-6, Vail Town Code. Conditional Use Permit are established by Review Criteria Relationship and impact of the use on the development objectives of the Town. Offices are listed as conditional uses, second floor and above, within the Lionshead Mixed Use 1 District. Therefore, this proposal is consistent with Vail Town Code. Staff believes the proposed temporary real estate office facilitates the overall recommendation of the Lionshead Redevelopment Master Plan to add 'live beds' or 'warm beds' to Lionshead (Ref. Chapter 4, Lionshead Redevelopment Master Plan shown in Section V of this memo). The proposed office will facilitate and promote the addition of 116 total units, including 71 residences and 45 club / fractional fee units, at the Ritz-Carlton; currently under construction. Chapter 5 of the Lionshead Redevelopment Master Plan lists detailed plan recommendations for the Marriott. Staff believes that the proposed plan, to temporarily convert two existing accommodation units into a real estate office does not warrant the significant redevelopment recommendations requested under Chapter 5, Detailed Plan Recommendations for the Marriott. The proposed changes are interior only and for temporary use to market and promote the Ritz-Carlton; currently under construction. 2. The effect of the use on light and air, distribution of population, transportation . facilities, utilities, schools, parks and recreation facilities, and other public facilities needs. Staff does not believe this proposal will affect the light and air, distribution of population, transportation facilities, schools, parks and recreation facilities, and other public facilities needs. The proposal includes only interior changes and no change to existing floor area. The proposed conversion triggers the employee generation and mitigation rates described in Section 12-23-2, Vail Town Code and Resolution 10, Series of 2007, adopted and effective April 3, 2007. Please see attachment D for detailed calculations of the mitigation fee. 3. Effect upon traffic with particular reference to congestion, automotive and pedestrian safety and convenience, traffic flow and control, access, maneuverability, and removal of snow from the street and parking areas. Staff does not believe this proposal will negatively affect automotive or pedestrian traffic. The proposal includes dedication of two parking stalls at the Holy Cross parking lot, which is the temporary parking facility for Vail Marriott Mountain Resort and Spa. The Ritz-Carlton construction includes a permanent parking facility for both Vail Marriott Mountain Resort and Spa and the Ritz-Carlton, which is scheduled to open prior to the completion of the Ritz-Carlton. When the parking facility is complete, three parking spaces will be dedicated for the proposed real estate office. 8 4. Effect upon the character of the area in which the proposed use is to be located, including the scale and bulk of the proposed use in relation to surrounding uses. Staff does not believe this proposal will have a significant effect on the character of the area. Other developments such as the Vail Plaza Hotel, Solaris and Four Seasons have implemented similar conversions in the Town of Vail. The proposed conversion will, mostly affect the Vail Marriott Mountain Resort and Spa and not the adjacent uses. The General Manager of the Marriott submitted an approval letter for the proposed conversion of rooms 605 and 607 and with the understanding that the rooms shall be restored to their original detail following termination of the office use. According to the applicant, the sixth floor, proposed location of the conversion, of the Vail Marriott Mountain Resort and Spa is currently used for receptions and events, not usually for vacation hotel guests. Therefore, the existing hotel function will not be significantly disrupted. Findings The Planning and Environmental Commission shall make the following findings before granting a conditional use permit: 1. That the proposed location of the use is in accordance with the purposes of this title and the purposes of the Lionshead Mixed Use 1 (LMU-1) District. 2. That the proposed location of the use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. 3. That the proposed use will comply with each of the applicable provisions of this title. B. Lionshead Redevelopment Master Plan The following Policy Objectives of the Lionshead Redevelopment Master Plan, Section 2.3, are facilitated by the proposed project. Policy Objectives 2.3.1 Renewal and Redevelopment Lionshead can and should be renewed and redeveloped to become a warmer, more vibrant environment for guests and residents. Lionshead needs an appealing and coherent identity, a sense of place, a personality, a purpose, and an improved aesthetic character. 2.3.6 Creative Financing for Enhanced Private Profits and Public Revenues Financially creative and fiscally realistic strategies must be identified so that adequate capital may be raised from all possible sources to fund desired private and public improvements. VII. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission approve, with conditions, the conditional use permit, pursuant to Section 12-7H- 4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in regard thereto. Staffs recommendation of approval, with conditions, is based upon the review of the criteria described in Section VI of this memorandum and the evidence and testimony presented. 9 Should the Planning and Environmental Commission choose to approve this request; the Community Development Department recommends the Commission pass the following motion: "The Planning and Environmental Commission approves the conditional use permit, pursuant to Section 12-7H-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in regard thereto." Should the Planning and Environmental Commission choose to approve this request, the Community Development Department recommends the Commission makes the following findings: "I. That the proposed location of the business office (real estate office) is in accordance with the purposes of this title and the purposes of the Lionshead Mixed Use 1 (LMU-1) District. 2. That the proposed location of the business office (real estate office) and the conditions under which it will be operated or maintained will not be detrimental to. the public health, safety, or welfare or materially injurious to properties or improvements in the vicinity. 3. That the proposed business office (real estate office) will comply with each of the applicable provisions of this title, based upon the review outlined in section VI of Staff's November 26, 2007 memorandum to the Planning and Environmental Commission." Should.the Planning and Environmental Commission choose to approve this request; the Community Development Department recommends the Commission pass the following conditions: "I. This conditional use permit, for a temporary business office (real estate office), shall lapse and become void 3 years from the date of approval or at the time of the Temporary Certificate of Occupancy issuance for the Ritz-Carlton; currently under construction at 728 West Lionshead Circle, whichever occurs first. Within 30 days from the ceasing date, the applicant shall complete the restoration, of the two accommodation units (rooms 605 & 607), to their original form. 2. The applicant shall obtain a separate sign permit, from the Community Development Department, for any and all proposed signs associated with the proposed business office (real estate office). 3. The applicant shall submit the employee generation and mitigation fee, in the amount of $89,184.14, prior to issuance of a building permit." VIII. ATTACHMENTS A. Vicinity Map B. Applicant's Request C. Plans D. Employee Generation and Mitigation Rates calculations E. Ordinance No. 7, Series of 2007 (Commercial Linkage) F. Ordinance No. 8, Series of 2007 (Inclusionary Zoning) G. Resolution 10, Series of 2007 (Payment of Fees-In-Lieu) H. Public Notice 10 D ATTACHMENT B - Applicant's Request (5 pages) M-w, RM-0%R1-T41ti' C). JB- Mr. Warren Campbell, Planner Department of Community Development 75 South Frontage Road Vail, Colorado 81657 Dear Sirs 1. Summana The applicant, Ritz Carlton Development Company (RCIDC), represented by Mr. Robert Foss, is requesting a Conditional Use Permit pursuant to Section 12, Vail Town Code, to allow for the placement of a lobby desk and the remodeling of a 2 roam hospitality suite at the Vail Marriott Mountain Resort and Spa, located at 715 Lionshead Circle, Lionshead, CO. and setting forth details in regard thereto. Agents:. Mr. Robert Foss, Clement Foss Architects is serving as agent to RCDC. Mr. Dave Pease, GM of the Vail Marriott Mountain Resort and Spa is serving as Agent for the, hotel owners, DiamondRock. Hospitality Company. DiamondRock purchased the hotel from Vail Resorts in 2005. Rased upon this memorandum and the evidence and testimony presented, we request that the Community:Development Department recommend approval for Conditional Use. 11. DescriDtion of the Request The applicant, Ritz Carlton Development Company (RCDC), is requesting a conditional use permit pursuant to Section 12, Vail Town Code, to allow for the placement of a lobby desk and for the remodeling of the 2 room hospitality suite (605/607) into a business office at the Vail Marriott Mountain Resort and Spa (see attached site plan). The lobby desk will temporarily occupy the southwest corner of the existing library (see attached lobby plan) and consists of the existing bookcase, a desk with 1 staff chair and 2 guest chairs. The desk wr'll function as a greeting space for interested persons. Those desiring more information will be escorted to the a floor business office. The business office will temporarily occupy the existing 2 room hospitality suite (605/607) on the 6t' floor of the west wing (see attached & floor plan). The office will function as a marketing and sales gallery for the Ritz Carlton project, under construction next door to the hotel. It will include a.scale model, video presentations, information exhibits, sample materials and office area. (see attached Gallery plan). The Ritz Carlton Development Company 6649 Westwood Boulevard, Suite 55001, Orlando, Ftodda 32821-6090 * (447) 206-6000 12 TI-tr Ri-rr-CAti-` oi,, C -ija, M. Backaround: This temporary use is in support of the previously approved Ritz Carlton Club and Residences Vail,, currently under construction at the old West Day Lot in Uonshead. The Club portion includes 45 units (2, 3 and 4 bedrooms) of a 111P interest (3 week) fractional, marketed and sold by the Ritz Carlton Development Company. The Residences include 71 whale ownership units, sold by Slifer, Smith and Frampton. The Club and Residences share some common elements including the gain lobby and most amenities. Bath entities are to be managed by the Ritz Carlton Hotel Company, The Ritz Carlton construction has recently started and occupancy Is scheduled for July 2010. A. Relationshiri i Impact on town obiectives: Chapter 12-1-2, Purpose: A: This project promotes the general purposes of the Town in support of the previously approved Ritz Carlton project, helping to ensure its economic viability, increasing the number of live beds in a- healthy, safe and moral way. The business is conducted in a harmonious and coordinated manger by a reputable ow ?+vany. This conditional use permit will enhance and conserve the natural environment by bringing the affected hotel space into current compliance, as well as enhancing the resort character of the community.. Chapter 12.1-2: Purpose: 8: This proposal achieves the specific purposes of the Town as follows: 1. Because the conditional use occurs within an existing building it should not affect the light, air, sanitation, drainage or public facilities of the Town. 2. Because the conditional use occurs within an existing building it should not affect the ability to secure the safety from fire, panic, flood, avalanche, accumulation of snow or dangerous conditions of the Town. Specifically, we will make code required Improvements to the fire protection and separation systems of the affected spares. The Ritz Carlton Development Company 6649 Westwood Boulevard, Suite 500, Orlando, Florida 32821-6090 4 (407) 206-6000 13 Ti-tr RM C-ARL` ON C:tMW 3. The business use will promote sale and efficient pedestrian and vehicular traffic circulation. We do not believe it will add to the congestion in the streets. Specifically, by marketing to existing hotel guests and visitors we do not expect to increase traffic. Our staffing consists, of 1 employee located in the 6t' floor space and 1 employee at the desk. 1. other employee is can rotation (only 2 employees in the hotel at any one time) during the next ski season. The hotel parking is not at capacity during the ski season because of the large quantity of group tours. During the summer, when hotel parking i_s at capacity, there is plenty of excess capacity with free parkin at the Lionshead public parking lot. Additionally, the new parking structure is scheduled to be completed early, which should further enhance parking. 4. Please see the above comments as they relate to off=street parking. The proposed office use will require minimal loading impacts. Our main intent is to only generate marketing leads in the 07106 season. We could: start sales contracts in the 08/09 season, but also intend and need to have other city-approved Vail Village gallery space by then- 5. The proposed marketing and sales activities conserve and maintain the established community qualifies and economic values. Specifically, the lobby desk will be use as a greeting space only, with interested parties being escorted up to the 6th floor gallery. The a floor is currently a hospitality suite floor, already used for receptions and events, not usually for vacation hotel guests. Regarding economic value, the marketing and eventual sales will be working toward generating over 540 club memberships and a potential 1450 or more vacation visits per year. Each membership includes 1 or .2 ski season visits and 1 summer visit (or vice versa), plus opportunity for additional shoulder season use. If Gonditional Use is approved, marketing starts this ski season, with Ritz Carlton occupancy in summer season of 2010. We will return the hospitality suite to its original use between summer and. ski season 2010. 6. As the a floor is already lousiness oriented, we believe that the Conditional Use is in keeping with a harmonious, convenient, workable relationship and consistent with both the Town and hotel objectives. 7. Because we are working within an iz."Grig structure, we will not be contributing to excessive population densities or ove,. vwding of the land. The hospitality suite currently only includes 2 double beds and a living area. Our intended use maintains the living area, with the bed area used as gallery space. For apres ski events we intend to have maybe 3 - 4 hotel guest couples visit at most. This would be consistent with hospitality events that already occur. 8. The proposed Condition Use makes no changes to the appearance of the town. Any terrace informational exhibits will occur below the current balcony visibility line. We intend to add thematic decorative portable `screens' to divide the existing hospitality event terrace. from the gallery terrace. The 'screens' will be perpendicular to town view litres (see floor plan).. The Ritz Carlton Development Company 6649 Westwood Boulevard, Suite 500, Orlando, Florida 32821-6090 4 (407) 206-6000 14 THE RITZ-CARLTON CLUIV' 9. The proposed Condition Use makes. no changes to the natural features of the town. 10. The proposed Condition Use makes no changes to the open space or amenities of the town. 11. We believe the proposed Condition Use is consistent with the approved Ritz Carlton project, orderly growth and a viable Lionshead. Chapter 12-7H: Purpose: This proposal achieves the speck purposes of the Lionshead Mixed Use district in its support of the approved Ritz Carlton Club and Residences Vail project. Section 4.13 Live Beds f Section 5.13 The Marriott There are 276 short term accommodation rooms, not including the hospitality suites at the hotel. All of the short term rooms are being retained. There are a total of 344 accommodation rooms at the hotel. Approval of the Conditional Use will enhance the Town and significantly increase the availability of live beds through the redevelopment of the adjacent site (see 5.13.1) and the marketing of the 45 Ritz Carlton Club units. The potential for new live beds being marketed is 540 weeks. The Conditional Use does temporarily take one hospitality suite (see existing 605/607 plan) out of use. The hospitality suite overlooks the construction site and is not prime space for guests (see site plan). The time frame for the Conditional Use is between Jan. 2007 and August 2010. The time frame includes a 6 week conversion time at the beginning and end of the Conditional Use. Historically, the hotel is at maximum capacity less than 30 days per year. Because the beginning the conversion is scheduled for Jan. 07, occupancy in 4 rooms on the 5' floor directly below may also be temporarily affected A summer season conversion back to the hospitality suite beginning in June 2010 is not expected to affect occupancy. Zoning The Conditional Use supports the policy objective 2.3.3 through the promotion of increased live beds. Surrounding land uses are not affected by this temporary Conditional Use. There are no Major Exterior Alterations. The Conditional Use does not modify the existing building exterior in any way. Informational exhibits are below the existing balcony line. Portable screening elements are temporary and not attached to the building. The Ritz Carlton Development Company 6649 Westwood Boulevard, Suite 500, Orlando, Florida 32827-6090 • (407) 208-6000 15 Ti-16 RinrC.Aw-TO N CLur}w Parking The hospitality suite requires 1.4 parking•spaces (verify). The Conditional Use requires 2.6 spaces. There are only 2 staff anticipated at this location. The hotel is allocating 2 spaces during the temporary displacement of the hotel parking to the Holy Cross site. Upon early completion of the Ritz Carlton garage, 3 spaces could be allocated (see also response Chapter 12-1-2-B - 3 above). Sincerely, VO C. Robert C. Foss, Consultant to RCDC Clement Foss Architects 2709 South Mac®ill Avenue Tampa, Florida 33629 813 831 3223 The Ritz Carlton Development Company 6649 Westwood Boulevard, Sate 6M, Or}ando, Florida 32821-6090 o. (407) 206-6000 16 s i WIT C7 m n i N W N (D N W dM 40M 4!%4, • t 3 6n? f -.d - IE tlNIR `T[ 1 i 5Uj StNRI, = F76 CuKrv' fe r . ??p4Gtl,?tu? G1S 619pp- u#y16pT? , ? H6? &19 ? fi. i AL w_i....uW.,1LT N rill- • 11 ? t?tF'4R`? , p i g« Y rte: ,.+? ? ?? 9w f!?i ?. :sue.. e..:......... .«V`.? R 71 605 '60 ... {,? ' HOSPITALITY SUITE i MV DID I z Ff?S e ATTACHMENT D - Employee Generation and Mitigation Rates calculations Inclusionary Zoning Calculations For: Vail Marriott Mountain Resort and Spa Legal Description: Lot 1, West Day Subdivision 1. Applicability Under Section 12-24-4 (Inclusionary Zoning - Redevelopment), Vail Town Code, the conversion of two accommodation units to a real estate office triggers the Employee Generation and Mitigation Rate requirements in Section 12-23-2 (Commercial Linkage - Employee Generation and Mitigation Rates), Vail Town Code.. The addition of commercial area equals Commercial Linkage as defined by Section 12-2-2 (Definitions), Vail Town Code. II. Employee Generation Calculation The following calculations were drawn from the employee generation and mitigation requirements in Section 12-23-2 (Commercial Linkage - Employee Generation and Mitigation Rates), Vail Town Code. The commercial linkage requirement equals 20% of the net new employees generated. 1. Increase in Real Estate Office sa ft of 940 sa ft (conversion from residential): 940 sq ft / 1,000 x 5.1 employees (Real Estate Office) x 20% mitigation = 0.96 employees to be provided deed restricted employee housing 2. Decrease of two (2) Accommodation Units: 2 Accommodation Units x.7 employees per unit (Accommodation Unit) x 20% mitigation = 0.28 employees no longer required deed restricted employee housing, due to conversion. 3. Total: 0.96 employees minus 0.28 employees = 0.68 employees to be provided deed restricted employee housing as a result of the conversion. III. Mitigation Methods Based on the current circumstances of the subject site, Staff calculated the following two mitigation methods. However, the applicant may choose any 'Method of Mitigation' listed in Section 12-24-6, Vail Town Code. Fee-in-Lieu: Provide a fee-in-lieu payment to the Town of Vail for .68 employees x $131,385 / employee = $89,341.80. Payment of the fee-in-lieu of $89,341.80 must be paid prior to the issuance of a building permit for the project (Ref. Resolution 10, Series of 2007, adopted and effective April 3, 2007). 2. Off-Site: Provide off-site at least a 438 sq ft Studio Unit - exceeds requirement by 0.57 employees. The deed restriction for the off-site unit must be provided and accepted by the Town of Vail prior to the issuance of any Certificate of Occupancy for the new Real Estate Office (Ref. Section 12-24-6 Inclusionary Zoning, Methods of Mitigation). 20 ATTACHMENT E - Ordinance No. 7, Series of 2007 (Commercial Linkage) ORDINANCE NO. 7 SERIES 2007 AN ORDINANCE AMENDING TITLE 12, ZONING REGULATIONS, VAIL TOWN CODE, BY THE ADDITION OF NEW DEFINITIONS TO SECTION 12-2- 2, AND THE ADOPTION OF A NEW CHAPTER 23, ENTITLED COMMERCIAL LINKAGE, AND SETTING FORTH DETAILS IN REGARD THERETO WHEREAS, the Town of Vail has experienced a decrease in population during the past ten years due to market conditions that have given homeowners incentive to sell their properties; WHEREAS, during that period of time, housing costs in Vail have increased at a much higher rate than income has increased; WHEREAS, new commercial development and redevelopment in Vail will result in new employees being needed for uses in the new, buildings and for the maintenance of the new buildings; WHEREAS, there is a substantial, direct, and rational connection between the need for housing of employees generated by new commercial development and redevelopment and the requirements for the provision of employee housing, as documented in the report entitled, "Town of Vail Nexus/Proportionality Analvsis for Emplovee Housing Mitigation Programs," prepared for the Town by RRC Associates, Inc., dated March 12, 2007, a copy of which is on file with the Town Clerk and available for public inspection; WHEREAS, on March 12, 2007, the Planning and Environmental Commission of the Town of Vail held a public hearing and reviewed and forwarded a recommendation of denial of the proposed text amendments to the Zoning Regulations to the Vail Town Council in accordance with the procedures and criteria and findings outlined in Chapter 12-3 of the Zoning Regulations; WHEREAS, the Town Council believes that the provision of a reasonable and appropriate percentage of new employee housing is the responsibility of new commercial developments and redevelopments which have a nexus to new job generation; WHEREAS, it is the Town Council's goal to provide housing for at least thirty percent (30%) of the net new employees generated from residential and commercial development in the Town through the conjunctive efforts of this ordinance and the Town's inclusionary zoning ordinance; and WHEREAS, the Town Council finds and determines that the public health, safety, and welfare will be served by adopting regulations which require mitigation of such impacts on employee housing in the Town of Vail. NOW, THEREFORE, BE IT ORDAINED BY THE Town Council of the TOWN OF VAIL, COLORADO, THAT: 21 SECTION 1. SECTION 12-2-2 OF THE VAIL TOWN CODE IS HEREBY AMENDED BY THE ADDITION OF THE FOLLOWING DEFINITIONS: COMMERCIAL DEVELOPMENT: Any development that includes uses such as business offices, professional offices, accommodation units, general retail, grocery, liquor and convenience, recreational amenity, real estate offices, conference facilities, health clubs, eating and drinking establishments, service oriented businesses, or similar uses. COMMERCIAL LINKAGE: An obligation that requires developers to provide housing for a certain number of new employees that are generated by a new commercial development, focusing solely on a development's impact as related to employee generation and not taking into account secondary impacts. CONFERENCE FACILITY: A facility used for conferences, conventions, seminars, banquets, and entertainment functions, along with accessory functions such as lobbies, pre-convene areas, and exhibition space. DEED RESTRICTION: A permanent restriction on the use, occupancy and transfer of real property that runs with the land and is recorded against the property in the Eagle County Clerk and Recorder's office. DEVELOPMENT: The construction, improvement, alteration, installation, erection, or expansion of any building, structure or other improvement in the Town. DORMITORY UNIT: A type of employee housing unit which houses not more than five (5) persons and includes common kitchen facilities, a common bathroom, and a minimum of two hundred fifty (250) square feet of GRFA for each person occupying the unit. EMPLOYEE: A person who works an average of thirty (30) hours per week or more on a year round basis at a business located in Eagle County. NEXUS STUDY: A report, prepared at the request of the Town Council, updated at least every five (5) years or more often if deemed necessary by the Town Council, analyzing the current and future employee housing needs resulting from new development and redevelopment in the Town. OFF-SITE: A location within the boundaries of the Town other than the site on which the commercial development is located. REAL ESTATE OFFICE: An office for the purpose of conducting real estate transactions and/or property management. REDEVELOPMENT: The construction, improvement, alteration, installation, erection, expansion or change in use of any existing building, . structure or other improvement in the Town that results in an increase in net floor area or GRFA. 22 SPA: A commercial establishment providing services including massage, body or facial treatments, make-up consultation and application, manicures, pedicures and similar services, but excluding beauty and barber shops. SECTION 2. TITLE 12 OF THE VAIL TOWN CODE IS HEREBY AMENDED BY THE ADDITION OF THE FOLLOWING NEW CHAPTER 23, ENTITLED COMMERCIAL LINKAGE: CHAPTER 23: COMMERCIAL LINKAGE 12-23-1: PURPOSE AND APPLICABILITY: A. The purpose of this Chapter is to ensure that new commercial development and redevelopment in the Town provide for a reasonable amount of employee housing to mitigate the impact on employee housing caused by such commercial development and redevelopment. B. Except as provided in Section 12-23-5, this Chapter shall apply to all new commercial development and redevelopment located within the following zone districts: 1. HIGH DENSITY MULTIPLE FAMILY (HDMF); 2. PUBLIC ACCOMMODATION (PA); 3. PUBLIC ACCOMMODATION 2 (PA2); 4. COMMERCIAL CORE 1 (CC1); 5. COMMERCIAL CORE 2 (CC2); 6. COMMERCIAL CORE 3 (CC3); 7. COMMERCIAL SERVICE CENTER (CSC); 8. ARTERIAL BUSINESS (ABD); 9. GENERAL USE (GU); 10. HEAVY SERVICE (HS); 11. LIONSHEAD MIXED USE 1 (LMU1); 12. LIONSHEAD MIXED USE 2 (LMU2); 13. SKI BASE/RECREATION (SBR); 14. SKI BASE/RECREATION 2 (SBR2); 15. PARKING DISTRICT (P); AND 16. SPECIAL DEVELOPMENT (SDD). 23 C.. The requirements of this Chapter shall be in addition to all other requirements of this Code. D. When any provision of this Chapter conflicts with any other provision of this Code, the provision of this Chapter shall control. 24 12-23-2: EMPLOYEE GENERATION AND MITIGATION RATES: A. The employee generation rates found in Table 23-1, Employee Generation Rates By Type of Commercial Use, shall be applied to each type of use in a commercial development. For any use not listed, the Administrator shall determine the applicable employee generation rate by consulting the Town's current nexus study. TABLE 23-1 EMPLOYEE GENERATION RATES BY TYPE OF COMMERCIAL USE Type of Use Employee Generation Rates Retail Store/Personal 2.4 Employees per 1,000 feet of Service/Repair Shop new net floor area Business Office and 3.2 Employees per 1,000 feet of Professional Office (excluding new net floor area Real Estate Office) Accommodation Unit/Limited Service Lodge Unit 0.7 Employees per net new units. Real Estate Office Eating and Drinking Establishment Conference Facility Health Club Spa 5.1 Employees per 1,000 feet of new net floor area 6.75 Employees per 1,000 feet of new net floor area 0.8 Employees per 1,000 feet of new net floor area 0.96 Employees per 1,000 feet of new net floor area 2.1 Employees per 1,000 feet of new net floor area B. If an applicant submits competent evidence that the employee generation rates contained in Table 23-1 or the nexus study do not accurately reflect the number of employees generated by the proposed commercial development or redevelopment and the Administrator finds that such evidence warrants a deviation from those employee generation rates, the Administrator shall allow for such a deviation as the Administrator deems appropriate. C. Each commercial development or redevelopment shall mitigate its impact on employee housing by providing EHUs for twenty percent (20%) of the 25 employees generated, pursuant to Table 23-1, or the nexus study, in accordance with the requirements of this Chapter. For example, for a development proposing 2,500 square feet of new net floor area for an eating and drinking establishment, the equation would be as follows: ((2,500 square feet = 1,000 square feet) x (6.75)) = 16.875 new employees generated 16.875 new employees generated x 20% = 3.375 employees to be housed 12-23-3: SIZE AND BUILDING REQUIREMENTS: A. Table 23-2, Size of Employee Housing Units, establishes the minimum size of EHUs and the number of employees that can be housed in each. All EHUs shall meet or exceed the minimum size requirements. TABLE 23-2 SIZE OF EMPLOYEE HOUSING UNITS Type of Unit Minimum Number of Size (GRFA) Employees Housed Dormitory 250 . 1 Studio 438 1.25 One-Bedroom .613 1.75 Two-Bedroom 788 2.25 Three-Bedroom 1225 3.5 B. Every EHU shall contain a kitchen facility or kitchenette and a bathroom. C. All trash facilities shall be enclosed. D. Parking shall be provided as required by this Title. E. Each EHU shall have its own entrance. There! shall be no interior access from any EHU to any dwelling unit to which it may be attached. F. EHUs shall not be included in the Town's calculations for density control. G. Every EHU shall be allowed three hundred (300) square feet of additional garage area. Any EHU that does not have a garage shall include a 26 minimum of an additional seventy five (75) square feet for storage in addition to normal closet space. 12-23-4: REDEVELOPMENT: Employee housing impacts need only be mitigated for a redevelopment that results in a greater number of employees generated from an increase in net floor area, or an increase in the number of accommodation units or limited service lodge units in the redevelopment; provided however, that if any existing EHUs are to be removed, an equal amount of EHUs shall be replaced in addition to the other requirements of this Chapter. 12-23-5: EXEMPTIONS: The following shall be exempt from this Chapter: 1. The redevelopment of existing commercial development, if no new net floor area, accommodation units, or limited service lodge units are created; and 2. The construction of EHUs. 12-23-6: METHODS OF MITIGATION: . A. The mitigation of employee housing required by this Chapter shall be-accomplished through one of the following methods: 1. On-site units. a. The requisite number of EHUs, or a portion thereof, may be constructed on-site, provided that all on-site EHUs are deed restricted in accordance with this Chapter. b. At the sole discretion of the Planning and Environmental Commission, an applicant may provide on-site dormitory units, unless the application is for a Special Development District, in which case, the Town Council, in its sole discretion, may accept dormitory units as a method of mitigation. 2. Conveyance of property on-site. An applicant may convey on-site real property to the Town on which no covenants, restrictions or issues exist that would limit the construction of EHUs, at the sole discretion of the Town Council. 3. Off-site units. a. The requisite number of EHUs, or a portion thereof, may be provided off-site within the Town, provided that such EHUs are deed restricted in accordance with this Chapter. b. At the sole discretion of the Planning and Environmental Commission, an applicant may provide off-site 27 dormitory units, unless the application is for a Special Development District, in which case, the Town Council, in its sole discretion, may accept dormitory units as a method of mitigation. 4. Payment of fees-in-lieu. The Planning and Environmental Commission may approve payment of a fee-in-lieu for each employee to be housed, or a portion thereof, required by this Chapter. a. The fee-in-lieu for each employee to be housed shall be established annually by resolution of the Town Council, provided that, in calculating that fee, the Town Council shall include the net cost (total cost less the amount covered by rental or sale income) of real property and all related planning, design, site development, legal, construction and construction management costs of the project, in current dollars, which would be incurred by the Town to provide housing for the employee to be housed in that year. b. An administrative fee, established by resolution of the Town Council, shall be added to the amount set forth in paragraph a hereof. C. Fees-in-lieu shall be due and payable prior to the issuance of a building permit for the development. d. The Town shall only use monies collected from fees- in-lieu to provide new employee housing. 5. Conveyance of property off-site. The Town Council may, at its sole discretion, accept the conveyance of property off-site in lieu of requiring the provision of EHUs, provided that no covenants, restrictions or issues exist on such property that would limit the construction of EHUs. B. Partial fees-in-lieu shall be paid when the calculation to determine the number of employees generated under this Chapter results in a fractional number of employees. 12-23-7: MITIGATION BANK: A. The Town will provide credit for any EHUs constructed or acquired in anticipation of future commercial development or redevelopment, provided that those EHUs meet all applicable requirements of this 'Title. However, the construction or acquisition of EHUs in anticipation of future development is at the sole risk of the applicant, because the commercial development shall be subject to all regulations pertaining to EHUs which are in effect at the time the application for commercial development review is submitted to the Town, even if those regulations change after the EHUs are constructed. B. It shall be the applicant's responsibility to provide documentation of any existing EHU credit upon submission of an application for development 28 review. If the applicant cannot adequately document such credits, the Town shall not be obligated to provide such credit. 12-23-8: ADMINISTRATION: A. Each application for development review shall include an employee housing plan or statement of exemption. B. An employee housing plan shall include the following: 1. Calculation Method. The calculation of employee generation, including credits if applicable, and the mitigation method by which the applicant proposes to meet the requirements of this Chapter, 2. Plans. A dimensioned site plan and architectural floor plan that demonstrates compliance with Section 12-23-3, Size and Building Requirements; 3. Lot Size. The average lot size of the proposed EHUs and the average lot size of other dwelling units in the commercial development or redevelopment, if any; 4. Schedules. A timeline for the provision of any off-site EHUs; . 5. Off-Site Units. A proposal for the provision of any off-site EHUs shall include a brief statement explaining the basis of the proposal; 6. Off-Site Conveyance Request. A request for an off-site conveyance shall include a brief statement explaining the basis for the request; 7. Fees-in-lieu. A proposal to pay fees-in-lieu shall include a brief statement explaining the basis of the proposal; and 8. Written Narrative. A written narrative explaining how the employee housing plan meets the purposes of this Chapter and complies with the Town's Comprehensive Plan. C. - The Planning and Environmental Commission shall approve, approve with modifications or deny an employee housing plan unless the plan is located within a Special Development District or includes a request to convey property, in which case the Town Council shall approve, approve with modifications, or deny the employee housing plan. D. If modifications to a submitted application for development review changes the obligations of the applicant under this Chapter, the applicant shall submit a modified employee housing plan. A modification to an employee housing plan shall be reviewed by the body that reviewed the initial employee housing plan. 29 E. An approved employee housing plan shall become part of the approved application for development review for the affected site. 12-23-9: OCCUPANCY AND DEED RESTRICTIONS: A. No EHU shall be subdivided or divided into any, form of timeshare unit or fractional fee club unit. B. EHUs shall not be leased for a period less than thirty (30) consecutive days. C. An EHU may be sold or transferred as a separate unit on the site. D. An EHU shall be continuously rented and shall not remain vacant for a period in excess of three (3) consecutive months unless, despite reasonable and documented efforts to rent, rental efforts are unsuccessful. E. No later than February 1 of each year, the owner of an EHU shall submit a sworn affidavit on a form provided by the Town to the Town of Vail Community Development Department containing the following information: 1. Evidence to establish that the EHU has been occupied throughout the year by an employee; 2. The rental rate; 3. The employer; and 4. Evidence to demonstrate that at least,one tenant residing in the EHU is an employee. 12-23-10: TIMING: All EHUs required by this Chapter shall be ready for occupancy prior to the issuance of a temporary certificate of occupancy for the affected commercial development or redevelopment. 12-23-11: VARIANCES: Variances from the requirements of this Chapter may be granted pursuant to the procedures and standards set forth in Chapter 17 of this Title. 12-23-12: REVIEW: A. Purpose. The Town Council intends that the application of this Chapter not result in an unlawful taking of private property without the payment of just compensation, and therefore, the Town Council adopts the review procedures set forth in this Section. B. Planning and Environmental Commission review. Any applicant for commercial development who feels that the application of this Chapter would effect an unlawful taking may apply to the Planning and Environmental 30 Commission for an adjustment of the requirements imposed by this Chapter. If the Planning and Environmental Commission determines that the application of this Chapter would result in an unlawful taking of private property without just compensation, the Planning and Environmental Commission may alter, lessen, or adjust employee housing requirements as applied to the particular project under consideration to ensure that there is no unlawful uncompensated taking. C. Town Council review. If the Planning and Environmental Commission denies the relief sought by an applicant, the applicant may request a hearing before the Town Council. Such hearing shall be a quasi-judicial hearing and conducted according to the Town's rules and regulations regarding quasi-judicial hearings. At such hearing, the burden of proof shall be on the applicant to establish that the fulfillment of the requirements of this Chapter would effect an unconstitutional taking without just compensation pursuant to applicable law. If the Town Council determines that the application of this Chapter would effect an illegal taking without just compensation, the Town Council may alter, lessen, or adjust the employee housing requirements as applied to the particular project under consideration to ensure that no illegal uncompensated taking occurs. The decision of the Town Council shall be final, subject only to judicial review. Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 5. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 13th day of March, 2007 and a public hearing for second reading of this Ordinance set for the 3rd day of April, 2007, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 3rd day of April, 2007. 31 ATTACHMENT F - Ordinance No. 8, Series of 2007 (Inclusionary Zoning) ORDINANCE NO. 8 SERIES 2007 AN ORDINANCE AMENDING TITLE 12, ZONING REGULATIONS, VAIL TOWN CODE, BY THE ADDITION OF NEW DEFINITIONS T'O SECTION 12-2- 2, AND THE ADOPTION OF A NEW CHAPTER 24, ENTITLED INCLUSIONARY ZONING, AND SETTING FORTH DETAILS IN REGARD THERETO WHEREAS, the Town of Vail has experienced a decrease in population during the past ten years due to market conditions that have given homeowners incentive to sell their properties, WHEREAS, during that period of time, housing costs in the Town of Vail have increased at a much higher rate than income has increased; WHEREAS, local residents own only approximately thirty-two percent (32%) of all homes in the Town of Vail, and only twenty-two percent (22%) of those homes that were built in 2005; WHEREAS, it is estimated that forty-seven percent (47%) of households in the Town of Vail earned less than one hundred percent (100%) of the area median income ($67,200 for an average two-person family) in,2006; WHEREAS, there are virtually no homes in the Town's housing market that are potentially affordable to households earning less than one hundred forty percent (140%) of the area median income ($89,600 for an average two-person family); WHEREAS, there is a scarce supply of developable land in the Town of Vail; WHEREAS, through the Vail 2020 Strategic Planning Process, the community has identified employee housing as one of the highest priority issues for -the Town to address; WHEREAS, there is a substantial, direct, and rational connection between the need for employee housing generated by new residential development and redevelopment and the requirements for the provision of employee housing, as documented in the report entitled, "Town of Vail Nexus/Proportionality Analvsis for Emolovee Housinq Mitiqation Programs," prepared for the Town by RRC Associates, Inc., dated March 12, 2007, a copy of which is on file with the Town Clerk and available for public inspection; WHEREAS, on March 12, 2007, the Planning and Environmental Commission of the Town of Vail held a public hearing and reviewed and forwarded a recommendation of denial of the proposed text amendments to the Zoning Regulations to the Vail Town Council in accordance with the procedures and criteria and findings outlined in Chapter 12-3 of the Zoning Regulations of the Town.of Vail; 32 WHEREAS, new residential development and redevelopment in the Town will result in new employees being needed for uses in the new buildings and for the maintenance of the new buildings; WHEREAS, the Town Council believes that the provision of a reasonable and appropriate percentage of new employee housing is the responsibility of new residential developments and redevelopments which have a nexus to new job generation and an impact on housing units available to local employees; WHEREAS, it is the Town Council's goal to provide housing for at least thirty percent (30%) of the new employees generated from residential and commercial development in the Town through the conjunctive efforts of this ordinance and the Town's commercial linkage ordinance; and WHEREAS, the Town Council finds and determines that the public health, safety, and welfare will be served by adopting regulations which require mitigation of such impacts on employee housing in the Town of Vail. NOW, THEREFORE, BE IT ORDAINED BY THE Town Council of the TOWN OF VAIL, COLORADO, THAT: SECTION 1. SECTION 12-2-2 OF THE VAIL TOWN CODE IS HEREBY AMENDED BY THE ADDITION OF THE FOLLOWING DEFINITIONS: INCLUSIONARY ZONING: A zoning obligation based on the community's need for employee housing considering many factors and secondary impacts, including scarcity of developable land; rising home values; inadequate availability of employee housing in the market; and direct employee generation impacts. REMODELING: The alteration or renovation of the interior only of an existing residential dwelling unit in the Town of Vail, without any increase in GRFA. RESIDENTIAL DEVELOPMENT: A DEVELOPMENT THAT INCLUDES AT LEAST ONE DWELLING UNIT, INCLUDING SINGLE-FAMILY DWELLINGS, TWO-FAMILY DWELLINGS, MULTIPLE FAMILY DWELLINGS, FRACTIONAL FEE CLUB UNITS, LODGE DWELLING UNITS, ATTACHED ACCOMMODATION UNITS, AND TIMESHARE UNITS. SECTION 2. TITLE 12 OF THE VAIL TOWN CODE IS HEREBY AMENDED BY THE ADDITION OF THE FOLLOWING NEW CHAPTER 24: CHAPTER 24: INCLUSIONARY ZONING 12-24-1: PURPOSE AND APPLICABILITY: A. The purpose of this Chapter is to ensure that new residential development and redevelopment in the Town of Vail provide for a reasonable amount of employee housing to mitigate the impact on employee housing caused by such residential development and redevelopment. 33 B. This Chapter shall apply to all new residential development and redevelopment located within the following zone districts, except as provided in Section 12-24-5: 1. HIGH DENSITY MULTIPLE FAMILY (HDMF);. 2. PUBLIC ACCOMMODATION (PA); 3. PUBLIC ACCOMMODATION 2 (PA2); 4. COMMERCIAL CORE 1 (CC1); 5. COMMERCIAL CORE 2 (CC2); 6. COMMERCIAL CORE 3 (CC3); 7. COMMERCIAL SERVICE CENTER (CSC); 8. ARTERIAL BUSINESS (ABD); 9. GENERAL USE (GU); 10. HEAVY SERVICE (HS); 11. LIONSHEAD MIXED USE 1 (LMU1); 12. LIONSHEAD MIXED USE 2 (LMU2); 13. SKI BASE/RECREATION (SBR); 14. SKI BASE/RECREATION 2 (SBR2); 15. PARKING DISTRICT (P); AND 16. SPECIAL DEVELOPMENT (SDD). C. The requirements of this Chapter shall be in addition to all other requirements of this Code. D. When any provision of this Chapter conflicts with any other provision of this Code, the provision of this Chapter shall control. 12-24-2: EMPLOYEE HOUSING REQUIREMENTS: Every residential development and redevelopment shall be required to mitigate.its direct and secondary impacts on the Town by providing employee housing at a mitigation rate of ten percent (10%) of the total new GRFA. For example, for a development proposing 5,500 square feet of new GRFA, the calculation would be as follows: 5,500 square feet of new GRFA. x 10% mitigation rate = 550 square feet of employee housing to be provided 34 12-24-3: BUILDING REQUIREMENTS: A. Table 24-1, Size of Employee Housing Units, establishes the minimum size requirements for EHUs under this Chapter. All EHUs shall meet or exceed the minimum size requirements. TABLE 24-1 SIZE OF EMPLOYEE HOUSING UNITS Type of Unit Minimum Size (GRFA) Dormitory 250 Studio 438 One-Bedroom 613 Two-Bedroom 788 Three-Bedroom 1225 B. Every EHU shall contain a kitchen facility or kitchenette and a bathroom. C. All trash facilities shall be enclosed. D. Parking shall be provided as required by this Title. E. Each EHU shall have its own entrance. There shall be no interior access from any EHU to any dwelling unit to which it may be attached. F. EHUs shall not be included in the Town's calculations for density control. G. Every EHU shall be allowed three hundred (300) square feet of additional garage area. Any EHU that does not have a garage shall include a minimum of an additional seventy five (75) square feet for storage in addition to normal closet space. 12-24-4: REDEVELOPMENT: Employee housing need only be provided for the increase in the GRFA of a redevelopment; provided however, that if any existing EHUs are to be removed, an equal amount of EHUs shall be replaced in addition to other requirements of this Chapter. 12-24-5: EXEMPTIONS: The following shall be exempt from this Chapter: 1. The remodeling of an existing dwelling unit; 35 2. The replacement of a demolished residential development, provided the replacement structure does not exceed the total GRFA of the original structure, and 3. The construction of EHUs. 12-24-6: METHODS OF MITIGATION: The mitigation of employee housing required by this Chapter may be accomplished through one of the following methods: 1. On-site units. a. The requisite number of EHUs, or a portion thereof, may be constructed on-site, provided that all on-site EHUs are deed restricted in accordance with this Chapter. b. At the sole discretion of the Planning and Environmental Commission, an applicant may provide on-site dormitory units, unless the application is for a Special Development District, in which case, the Town Council, in its sole discretion, may accept dormitory units as a method of mitigation. 2. Conveyance of property on-site. An applicant may convey on-site real property to the Town of Vail on which no covenants, restrictions or issues exist that would limit the construction of EHUs, at the sole discretion of the Town Council. 3. Off-site units. a. The requisite number of EHUs, or a portion thereof, may be provided off-site within the Town, provided that such EHUs are deed restricted in accordance with this Chapter. b. At the sole discretion of the Planning and Environmental Commission, an applicant may provide off-site dormitory units, unless the application is for a Special Development District, in which case, the Town Council, in its sole discretion, may accept dormitory units as a method of mitigation. 4. Payment of fees-in-lieu. The Planning and Environmental Commission may approve payment of a fee-in-lieu for each square foot of employee housing required by this Chapter. a. The fee-in-lieu for each square foot shall be established annually by resolution of the Town Council, provided that in calculating that fee, the Town Council shall include the net cost (total cost less the amount covered by rental or sale income) of real property and all related planning, design, site development, legal, construction and construction management costs of the project, in current dollars, which would be incurred by the Town to provide the square feet in that year. 36 b. An administrative fee, established by resolution of the Town Council, shall be added to the amount set forth in paragraph a hereof. C. Fees-in-lieu shall be due and payable prior to the issuance of a building permit for the development. d. The Town shall only use monies collected from the fees-in- lieu to provide new employee housing. 5. Conveyance of property off-site. The Town Council may, at its sole discretion, accept a conveyance of real property off-site in lieu of requiring construction of EHUs, provided that no covenants, restrictions or issues exist on the property that would limit the construction of EHUs. 12-24-7 MITIGATION BANK: A. The Town will provide credit for any EHUs constructed or acquired in anticipation of future residential development or redevelopment, provided that those EHUs meet all applicable requirements of this Chapter. However, the construction or acquisition of EHUs in anticipation of future development is at the risk of the applicant, because the residential development shall be subject to all regulations pertaining to EHUs which are in effect at the time the application for development review is submitted to the Town, even if those regulations change after the EHUs are constructed. B. It shall be the applicant's responsibility to provide documentation of any existing EHU credits upon submission of an application for development review. If the applicant cannot adequately document such credits, the Town shall not be obligated to provide such credits. 12=24-8: ADMINISTRATION: A. Each application for development review shall include an employee housing plan or statement of exemption. B. An employee housing plan shall include the following: 1. Calculation Method. The calculation of the inclusionary zoning requirement, including credits if applicable, and the mitigation method by which the applicant proposes to meet the requirements of this Chapter; 2. Plans. A dimensioned site plan and architectural floor plan that demonstrates compliance with Section 12-24-3, Building Requirements; 3. Lot Size. The average lot size of the proposed EHUs and the average lot size of other dwelling units in the commercial development or redevelopment, if any; 37 , 4. Schedules. A timeline for the provision of any off-site EHUs; 5. Off-Site Units. A proposal for the provision of any off-site EHUs shall include a brief statement explaining the basis of the proposal; 6. Off-Site Conveyance Request. A request for an off-site conveyance shall include a brief statement explaining the basis for the request; and 7. Fees-in-lieu. A proposal to pay fees-in-lieu shall include, a brief statement explaining the basis of the proposal. 8. Written Narrative. A written narrative explaining how the employee housing plan meets the purposes of this Chapter and complies with the Town's Comprehensive Plan. C. The Planning and Environmental Commission shall approve, approve with modifications, or deny an employee housing plan unless the plan is located within a Special Development District or includes a request to convey property, and then the Town Council shall approve, approve with modifications, or deny the employee housing plan. D. If modifications to a submitted application for development review changes the obligations of the applicant under this Chapter, the applicant shall submit a modified employee housing plan. A modification to an employee housing plan shall be reviewed by the body that reviewed the initial employee housing plan. E. An approved Employee Housing Plan shall become part of the approved application for development review for the affected site. 12-24-9: OCCUPANCY AND DEED RESTRICTIONS: A. No EHU shall be subdivided or divided into any form of timeshare unit or fractional fee club unit. B. EHUs shall not be leased for a period less than thirty (30) consecutive days. C. An EHU may be sold or transferred as a separate unit on the site. D. An EHU shall be continuously rented and shall not remain vacant for a period in excess of three (3) consecutive months unless, despite reasonable and documented efforts to rent, rental efforts are unsuccessful. E. No later than February 1 of each year, the owner of each EHU shall submit a sworn affidavit on a form provided by the Town with the following information: 1. Evidence to establish that the EHU has been rented or owner occupied throughout the year; 38 2. The rental rate; 3. The employer; and 4. Evidence to demonstrate that at least one tenant residing in the EHU is an employee at a business located in Eagle County. 12-24-10: TIMING: All EHUs required by this Chapter shall. be ready for occupancy prior to the issuance of a temporary certificate of occupancy for the affected residential development. 12-24-11: VARIANCES: Variances from the requirements of this Chapter may be granted pursuant to the procedures and standards set forth in Chapter 17 of this Title. 12-24-12: REVIEW: A. Purpose. The Town Council intends that the application of this Chapter not result in an unlawful taking of private property without the payment of just compensation, and therefore, the Town Council adopts the review procedures set forth in this Section. B. Planning and Environmental Commission review. Any applicant for residential development who feels that the application of this Chapter would effect an unlawful taking may apply to the Planning and Environmental Commission for an adjustment of the requirements imposed by this Chapter. If the Planning and Environmental Commission determines that the application of this Chapter would result in an unlawful taking of private property without just compensation,, the Planning and Environmental Commission may alter, lessen, or adjust employee housing requirements as applied to the particular project under consideration to ensure that there is no unlawful uncompensated taking. C. Town Council review. If the Planning and Environmental Commission denies the relief sought by an applicant, the applicant may request a hearing before the Town Council. Such hearing shall be a quasi-judicial hearing and conducted according to the Town's rules and regulations regarding quasi-judicial hearings. At such hearing, the burden of proof shall be on the applicant to establish that the fulfillment of the requirements of this Chapter would effect an unconstitutional taking without just compensation pursuant to applicable law. If the Town Council determines that the application of this Chapter would effect an illegal taking without just compensation, the Town Council may alter, lessen, or adjust the employee housing requirements as applied to the particular project under consideration to ensure that no illegal uncompensated taking occurs. The decision of the Town Council shall be final, subject only to judicial review. Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the 39 remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 5. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 13th day of' March, 2007 and a public hearing for second reading of this Ordinance set for the 3rd day of April, 2007, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 3'd day of April, 2007. 40 ATTACHMENT G - Resolution 10, Series of 2007 (Payment of Fees-In-Lieu) RESOLUTION NO. 10 Series of 2007 A RESOLUTION ESTABLISHING THE 2007 PAYMENT OF FEES-IN-LIEU FOR EACH EMPLOYEE TO BE HOUSED, AS REQUIRED BY CHAPTER12-23, COMMERCIAL LINKAGE, AND FOR EACH SQUARE FOOT, AS REQUIRED BY CHAPTER 12-24, INCLUSIONARY ZONING, VAIL TOWN CODE; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on April 3, 2007, the Vail Town Council will consider the adoption of Ordinance Nos. 7 & 8, Series of 2007, with the intent of establishing Commercial Linkage and Inclusionary Zoning requirements in the Town of Vail; and WHEREAS, pursuant to Sections 12-23-5 and 12-24-6, Methods of Mitigation, payment of fees-in-lieu is one of five (5) methods by which the mitigation of employee housing required may be accomplished; and WHEREAS, in accordance with Sections 12-23-5 and 12-24-6, the fees-in-lieu for each employee to be housed and for each square foot of employee housing required shall be established annually by resolution of the Vail Town Council; and WHEREAS, the Vail Town Council has determined that the proposed fee-in-lieu amounts accurately reflect the affordability gap between a two person household earning 120% of the Area Median Income (AMI) and the 2006 Median Cost per Unit; and WHEREAS, the Vail Town Council finds that this Resolution furthers the development objectives of the Town and is in the best interest of the Town as it promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances the availability of employee housing within the Town of Vail. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Establishment of Fees-in-Lieu a. The fees-in-lieu for each employee to be housed or for each square foot of employee housing provided in accordance with Chapters 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, shall be established annually by resolution of the Town Council, provided that, in calculating that fee, the Town Council shall include the net cost (total cost less the amount covered by rental or sale income) of real property and all related planning, design, site development, legal, construction and construction management costs of the project, in current dollars, which would be incurred by the Town to provide housing for the employee to be housed or for each square foot of employee housing provided in that year; b. An administrative fee of $3,000/per employee or $3.65 per square foot shall be added to the amount set forth in paragraph a hereof. C. Fees-in-lieu shall be due and payable prior to the issuance of a building permit for the development. 41 d. . The Town shall only use monies collected from fees-in-lieu to provide new employee housing. The calculation formula for fee-in-lieu has been attached for reference (Exhibit A). 2. 2007 Pavment of Fees-in-Lieu Amounts a. Fee-in-lieu per employee (commercial linkage) = $131,385 b. Fee-in-lieu per square foot (inclusionary zoning) = $236.65 3. Effective Date of the Resolution This resolution shall become effective upon the adoption of Ordinance Nos. 7 & 8, Series of 2007, more commonly referred to as the ordinances establishing Commercial Linkage and Inclusionary Zoning in the Town of Vail. INTRODUCED, READ, APPROVED AND ADOPTED this 3rd day of April, 2007. 42 ATTACHMENT H - Notice 70il'NOFYAlL Vii` THIS ITEM MAY AFFECT YOUR PROPERTY PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the Planning and Environmental Commission of the Town of Vail will hold a public hearing in accordance with section 12-3-6, Vail Town Code, on November 26, 2007, at 1:00 pm in the Town of Vail Municipal Building, in consideration of: A request for a final review of a conditional use permit, pursuant to Section 12-71-1-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for t4? a business office (real estate office) located at 715 Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Clay Subdivision, and setting forth details in regard thereto. (PEC07-0066) Applicant: Diamond Rock Hospitality Company, represented by Robert Foss Planner. Nicole Peterson The applications and information about the proposals are available for public inspection during office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend project orientation and the site visits-that precede the public hearing in the Town of Vail Community Development Department. Please call 970-479-2138 for additional information. Sign language interpretation is available upon request, with 24-hour notification. Please call 970-479-2356, Telephone for the Hearing Impaired, for information. Published November 9, 2007, in the Vail Daily. 43 PLANNING AND ENVIRONMENTAL COMMISSION November 26, 2007 6 a. 1:OOpm 7OcNOfV ' TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 MEMBERS PRESENT MEMBERS ABSENT Michael Kurz Anne Gunion David Viele Scott Proper Rollie Kjesbo Bill Pierce- departed after items 1 and 3 were heard Site Visits: 1. Rams Horn Lodge - 416 Vail Valley Drive 2. Cornerstone - 1276 Westhaven Drive Driver: Warren ATTACHMENT B Please note: Times of items are approximate and subject to change. 10 minutes 1. A request for a final review of a conditional use permit, pursuant to Section 12-7H-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 715 Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1,West Day Subdivision, and setting forth details in regard thereto. (PEC07-0066) Applicant: Diamond Rock Hospitality Company, represented by Robert Foss Planner: Nicole Peterson ACTION: Approved with condition(s) MOTION: Kjesbo SECOND: Proper VOTE: 5-0-1 (Viele recused) CONDITION(S): 1. This conditional use permit for a temporary business office (real estate office), shall lapse and become void 3 years from the date of approval or at the time of the temporary certificate of occupancy issuance for the Ritz-Carlton (currently under construction at 728' West Lionshead Circle) whichever occurs first. Within 30 days from the ceasing date,. the applicant shall complete the restoration of the two accommodation units (rooms 605 & 607) to their original form. 2. The applicant shall obtain a separate sign permit from the Community Development Department, for any and all proposed signs associated with the proposed business office (real estate office). 3. The applicant shall submit the employee mitigation housing fee in lieu, in the amount of $89,184.14, or provide another method of mitigation, prior to issuance of a building permit. Commissioner Viele recused himself from the item as he is involved in the possible construction of the proposed changes. Nicole Peterson gave a presentation per Staffs memorandum. She clarified certain revisions made to the application and review since completion of the memo. There was no public comment. The Commissioners expressed their support of the application. 4 Attachment C MEDIA ADVISORY December 4, 2007 Contact: Corey Swisher, 479-2106 Town Manager's Office VAIL TOWN COUNCIL HIGHLIGHTS FOR DECEMBER 4, 2007 Work Session Briefs Council members present: Cleveland, Daly, Foley, Gordon, Hitt, Newbury, Rogers --Discussion of Real Estate Transfer Tax (RETT) Use Town Attorney Matt Mire presented the history and evolution of the Real Estate Transfer Tax, including advice from outside legal counsel indicating that Council is able to further amend the real estate transfer tax ordinance to alter the purposes for which the funds may be used. The Council was presented with the 5-year revenue and expense projections for the RETT fund, as well as a 10-year history of RETT collections. Finance Director Judy Camp explained that the redevelopment in recent years has resulted in higher-than-normal collections. Prior to redevelopment, RETT collections averaged $3M annually. This revenue is used for annual recreation, park and path maintenance of approximately $2M. The remaining funds are used toward other capital projects relating to parks, recreation, open space and environmental sustainability. Margaret Rogers asked that Council consider using RETT funds for employee housing. Council did not direct staff to pursue additional discussions at this time. For details, contact Camp at 479-2119. --Town Council training in legal and practical issues in Quasi-Judicial Proceedings, reducing the risks of liability and Council's role in the development review process Colorado Insurance Risk Sharing Agency (CIRSA) representative Tami Tanoue explained several relative issues surrounding Council's role as elected officials. Tanoue outlined: liability; town insurance coverage; official responsibilities; open meetings; and ex parte contacts. Representing the Vail Village Homeowners' Association, Jim Lamont asked for legitimate access to Council as negotiations were taking place. For details, contact Matt Mire at 479-2460. --Planning and Environmental Commission (PEC) /Design Review Board (DRB) Update During a review of the most recent meetings of the PEC and DRB, Chief of Planning Warren Campbell answered questions regarding the latest proposals to go before the two boards. Newbury moved to call up Item No. 1 on the November 26 PEC Agenda (allowing business offices in the Vail Marriott Mountain Resort and Spa) with Foley seconding. Due to a predetermined conflict of interest (Vail Resorts affiliation), Gordon recused himself from the vote. The motion passed 5-1, Rogers opposed. For details, contact Campbell at 479-2148. --Discussion of the first reading of Ordinance 33, Series of 2007, an Ordinance to enact prescribed regulation amendments to Title 12, Vail Town Code, to require public art for certain new development and redevelopment projects in Lionshead Mixed Use 1, Lionshead Mixed Use 2, Public Accommodations, Public Accommodations 2, Commercial Core 1, Commercial Core 2, Commercial Core 3, Ski Base Recreation, .and Ski Base Recreation 2 Attachment D THIS ITEM MAY EFFECT YOUR PROPERTY PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the Town Council of the Town of Vail will hold a public hearing in accordance with Section 12-3-3, Vail Town Code, on Tuesday, January 8, 2008, at 6:00 PM in the Town of Vail Municipal Building, in consideration of: ITEM/TOPIC: An appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Planning and Environmental Commission's approval of a request for a final review of a conditional use permit, pursuant to Section 12-71-1-4, Permitted and Conditional Uses, Second Floor and Above, Vail Town Code, to allow for a business office (real estate office) located at 714 West Lionshead Circle (Vail Marriott Mountain Resort and Spa)/Lot 1, West Day Subdivision, and setting forth details in regard thereto. (PEC07-0066) Appellant: Diamond Rock Hospitality Company, represented by Robert Foss Planner: Nicole Peterson The applications and information about the proposals are available for public inspection during regular office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call (970) 479-2138 for additional information. Sign language interpretation is available upon request with 24-hour notification. Please call (970) 479-2356, Telephone for the Hearing Impaired, for information. „ TOWN OF VAIL ?Y THIS ITEM MAY AFFECT YOUR PROPERTY PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the Planning and Environmental Commission of the Town of Vail will hold a public hearing in accordance with section 12-3-6, Vail Town Code, on December 24, 2007, at 1:00 pm in the Town of Vail Municipal Building, in consideration of: HOLIDAY - NO MEETING The applications and information about the proposals are available for public inspection during office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call 970-479-2138 for additional information. Sign language interpretation is available upon request, with 24-hour notification. Please call 970-479-2356, Telephone for the Hearing Impaired, for information. Published December 7, 2007, in the Vail Daily. Page 1 DESIGN REVIEW BOARD AGENDA PUBLIC MEETING - ,' December 19, 2007 TOWN OF via 3:00 P.M. Council Chambers 75 South Frontage Road - Vail, Colorado, 81657 Holiday Luncheon at 12:00 p.m. PROJECT ORIENTATION 1:00pm MEMBERS PRESENT MEMBERS ABSENT Mike Dantas (departed at 5:00 pm) Tom Dubois Pete Dunning Brian Gillette Libby Plante (departed at 5:00 pm) SITE VISITS 2:00pm 1. Pinkard Residence - 22 West Meadow Drive 2. Lion Square Lodge South - 660 W. Lionshead Place 3. Irwin Residence - 1956 West Gore Creek Drive 4. Safeway - 2131 North Frontage Rd West 5. Yarde Residence - 1895 Meadow Ridge Road 6. Staufer Residence - 746 Sandy Lane 7. Falkenberg Residence - 3944 Bighorn Road 8. Ginsberg Residence - 3967 Lupine Drive 9. Rams Horn Lodge - 416 Vail Valley Drive Driver: Bill PUBLIC HEARING - TOWN COUNCIL CHAMBERS 3:00pm Swearing in of new Board Member, Libby Plante, by Lorelei Donaldson, Town Clerk 2. Vote of Chairman and Vice Chairman Brian Gillette nominated Pete Dunning to serve as Chairman, and Mike Dantas to serve as Vice Chairman MOTION: Gillette SECOND: DuBois VOTE: 5-0-0 3. Pinkard Residence DRB07-0659 / 10 minutes Final review of a minor alteration (windows, dormer) 22 West Meadow Drive/Lot A, Vail Village Filing 2 Applicant: Jim Pinkard, represented by Michael L. Sanner, Architect, PC ACTION: Tabled to January 16, 2008 MOTION: Dantas SECOND: Gillette VOTE: 5-0-0 Rachel Page 1 4. Irwin Residence DRB07-0626 / 10 minutes . Rachel Final review of change to approved plans (parking) 1956 West Gore Creek Drive/Lot 45, Vail Village West Filing 2 Applicant: Dave Irwin ACTION: Approved with condition(s) MOTION: Gillette SECOND: Dantas VOTE: 5-0-0 CONDITION(S): 1. This approval shall only apply to "Concept #2" as submitted by the applicant. 2. The applicant shall provide Staff with dimensioned plans prior to building permit submittal. 3. The applicant shall plant one six-foot evergreen tree southwest of the approved retaining wall prior to requesting a final planning inspection. 5. Safeway, Inc. DRB07-0689 / 10 minutes Rachel Final review of a commercial addition (facade, cafe, lobby) 2131 North Frontage Road West/Lot 3, Vail Das Schone Filing 3 Applicant: Safeway, Inc, represented by Peterson Staggs Architects ACTION: Approved with condition(s) MOTION: Gillette SECOND: DuBois VOTE: 5-0-0 CONDITION(S): 1. The applicant shall break up the masses of siding on the facade of the building, and shall be depicted on plans submitted to Staff for compliance review prior to submittal for building permit. 2. The applicant shall provide a minimum of four additional approved wall sconces on the eastern facade of the building, and shall be depicted on plans submitted to Staff for compliance review prior to submittal for building permit. 3. The applicant shall utilize a wood trellis at the center entrance to the building, and shall be depicted on plans submitted to Staff for compliance review prior to submittal for building permit. 4. The applicant shall provide landscaping in the front that is comparable to existing landscaping, including at least as many aspens and other native species as existing, of the same or larger height than the existing trees, and shall be depicted on plans submitted to Staff for compliance review prior to submittal for building permit. 5. This approval does not constitute approval for any signage. 6. The applicant shall utilize a different material on the lower portion of the facade at the public entrances to the building, and shall be depicted on plans submitted to Staff for compliance review prior to submittal for building permit. 6. Yarde Residence DRB07-0688 / 10 minutes Rachel Conceptual review of a single family residence 1895 Meadow Ridge Road/Lot 17, Buffehr Creek Subdivision Applicant: Craig and Hope Yarde, represented by K.H. Webb Architects ACTION: Conceptual, no vote (Gillette recused due to conflict of interest) 7. Ginsberg Residence DRB07-0683 / 10 minutes Rachel Final review of a residential addition (bedroom, game room) 3967 Lupine Drive/Lot 18, Block 1, Bighorn Subdivision 1s' Addition Applicant: Stuart and Lisa Ginsberg, represented by Ken Bridges, AIA ACTION: Approved MOTION: Dantas SECOND: DuBois VOTE: 5-0-0 Page 2 8. Lion Square Lodge DRB07-0692 / 10 minutes Bill Conceptual review for an exterior remodel 660 West Lionshead Place/Lot A, Vail Lionshead Filing 1 Applicant: Lion Square Lodge, represented by Chip Melick ACTION: Conceptual, no vote 9. Staufer Residence DRB07-0643 / 10 minutes Bill Final review of a separation request (new secondary unit) 746 Sandy Lane/Lot 1, Block 1, Vail Potato Patch Filing 2 Applicant: Anne Staufer, represented by Fritzlen Pierce Architects ACTION: Tabled to January 16, 2008 MOTION: DuBois SECOND: Gillette VOTE: 3-0-0 (Dantas and Plante absent) 10. Falkenberg Residence DRB07-0200 / 10 minutes Scot Final review of a residential addition (bedroom) 3944 Bighorn Road/Lot 7, Gore Creek Park Applicant: Bruce Falkenberg, represented by Shepherd Resources, Inc. ACTION: Approved with condition MOTION: Gillette SECOND: DuBois VOTE: 3-0-0 (Dantas and Plante absent) CONDITION(S): 1. DaVinci synthetic shake roofing material shall be used on all 2 1/2:12 roof elements, unless and until the Applicant, submits evidence and information from the manufacturer of DaVinci roof materials documenting that using such material on a 2 1/2:12 roof pitch will otherwise void the warranty for the product; in such instance, the DRB endorses the use of standing seam copper roof material in all areas of 21/2:12 roof pitch. 11. Rams Horn Lodge DRB07-0698 / 30 minutes Scot Conceptual review for a residential addition (fagade and 4th floor addition) 416 Vail Valley Drive/Lot A, Vail Village Filing 5 Applicant: Rick Pylman ACTION: Conceptual, no vote Staff Angrovals Solaris DRB07-0551 Warren Final review of change to approved plans (stairway) 143 East Meadow Drive/Lot P, Block 5D, Vail Village Filing 1 Applicant: Crossroads East One LLC, represented by Mauriello Planning Group MV Penthouses, LLC DRB07-0661 Warren Final review of change to approved plans (building exterior, landscaping, snowmelt, lighting) 595 East Vail Valley Drive/Lots, A, B, C, Vail Village Filing 7 Applicant: MV Penthouses, LLC, represented by Zehren and Associates, Inc. Gaughan Residence DRB07-0672 Bill Final review of change to approved plans (site wall material) 385 Mill Creek Circle/Lot 18, Block 1; Vail Village Filing 1 Applicant: Michael Gaughan, represented by Zehren & Associates Page 3 Forever Trust DRB07-0673 Final review of change to approved plans (lighting) 493 Beaver Dam Road/Lot 1, Block 2, Vail Village Filing 6 Applicant: Forever Trust, represented by K.H. Webb Architects Rachel Vail Spa DRB07-0654 Nicole Final review of a sign 710 West Lionshead Circle/Lot 3, Block 1, Vail Lionshead Filing 1 Applicant: Vail Spa Condominium Association, represented by Andy Ford Melvin Brody DRB07-0699 Bill Final review for a re-roof (wood shakes to metal) 4512 Streamside Circle East/Lot 14, Bighorn 4th Addition Applicant: Melvin Brody Rimini Gelato DRB07-0667 Nicole Final review of a sign 675 Lionshead Place/Lot 1, Vail Lionshead Filing 6 Applicant: Vail Resorts, represented. by Sign Designs August Residence DRB07-0670 Bill Final review of a residential addition (garage) 2309 Chamonix Lane/Lot 8, Block A, Vail das Schone Subdivision Applicant: Brett and Carey August, represented by Rising Sun Development Avalon DRB07-0668 Final review of a sign 675 Lionshead Place/Lot 1, Vail Lionshead Filing 6 Applicant: Vail Resorts, represented by Sign Designs Nicole Kennedy Residence DRB07-0682 Bill Final review of change to approved plans (landscaping) 4974 Bighorn Drive/Lot 4, Gore Creek Park Applicant: Aaron and Jenifer Kennedy, represented by Morter Architects Avery Residence DRB07-0629 Rachel Final review of a minor alteration (entry foyer) 742 Sandy Lane/Lot 3, Vail Potato Patch Filing 2 Applicant: Steve and Molly Avery, represented by John G. Martin, Architect, LLC Blanchard Reroof DRB07-0704 Final review for a minor alteration (reroof) 2805 Bald Mountain Road/Lot 2, Block 2, Vail Village 13 Applicant: Brad Smith-The Roofing Company Joe Higgins Residence DRB07-0652 Bill Final review of a residential addition (bedroom, bathroom, family room) 1465 Greenhill Court/Lot 9, Glen Lyon Subdivision Applicant: Paul and Ursula Higgins, represented by Studio Spinnato Page 4 Daymer Corporation DRB07-0685 Warren Final review of changes to approved plans (exterior modifications) 100 East Meadow Drive/Lot O, Block 5D, Vail Village Filing 1 Applicant: Daymer Corporation, represented by Zehren & Associates, Inc. Vail Resorts DRB07-0690 Nicole Final review of a new sign (awning) 675 Lionshead Place/Lot 1, Lionshead 6th Filing Applicant: Vail Resorts Slifer, Smith and Frampton Real Estate DRB07-0693 Rachel Final review for a new sign (two projecting signs) 531 E. Lionshead Circle/Lot 3, Vail Lionshead 1s` Filing Applicant: Julie Bergsten/Kelly Moser The applications and information about the proposals are available for public inspection during regular office hours in the project planner's office, located at the Town of Vail Community Development Department 75 South Frontage Road. Please call 479-2138 for information. Sign language interpretation available upon request with 24 hour notification. Please call 479-2356, Telephone for the Hearing Impaired, for information. Page 5 MEMORANDUM TO: Town Council FROM: Community Development Department DATE: January 8, 2008 SUBJECT: Employee Housing Fee-in-Lieu 1. Introduction On April 3, 2007, the Vail Town Council adopted Ordinances Nos. 7 & 8, Series of 2007, establishing Commercial Linkage and Inclusionary Zoning in 16 of the Town's highest density zone districts. The goal of the two Ordinances is to conjunctively provide housing for at least 30% of the net new workforce generated by new development and redevelopment. Ordinances Nos. 7 & 8 allow for four mitigation methods. One of the four mitigation methods is a fee-in-lieu of providing the employee housing. Simultaneous with the passage of Commercial Linkage and Inclusionary Zoning was the passage of Resolution 10, Series of 2007, which established the 2007 fee-in-lieu amount. Fee-in-lieu is established per employee as well as per square foot. The established fee-in-lieu per employee for 2007 was $131,385. The fee per employee is required for Commercial Linkage which assesses a development's requirements by net new employees generated. The $131,385 was established to bridge the gap between an employee earning 120% of the Area Median Income and the 2007 median purchase price of an 825 square foot unit in the Town of Vail, plus an administrative fee of $3,000 per employee. The administrative fee is designed to cover the Town's cost for converting the fee-in- lieu to employee housing units. The established fee-in-lieu per square foot for 2007 was $236.65. The fee per square foot is required for Inclusionary Zoning which assesses a development's requirements based on net new square feet constructed. The fee-in-lieu per square foot is based on identical criteria as the employee fee-in-lieu, except it is broken down per square foot. Again, an administrative fee is added. When the Town Council established the fee-in-lieu, buy down units as well as adding additional employee beds in a redevelopment of Timber Ridge were the assumed uses for funds collected. It was also acknowledged that it would be beneficial to have funds for unanticipated employee housing opportunities. In the past, this has predominately been the acquisition of existing housing stock or land. II. Anticipated Uses for Fee-in-Lieu A. Buy Down Units The formula for establishing the fee-in-lieu is based upon the belief that the most common use for fee-in-lieu is going to be purchasing existing housing stock, deed restricting it and reselling it at a reduced price to local employees. There are 6,400 dwelling units in the Town of Vail ? 1,500 of those are currently occupied by local employees 0 624 units are currently deed restricted 0 876 units are not deed restricted Maintaining employee occupants in the 876 non-deed restricted units within the Town of Vail is critical to ensuring the Town's employee base is not further eroded. The incentive for maintaining employee occupied rentals or a for-sale unit is diminished by possible financial gains for converting the use of the unit(s) to vacation or second home use. As stated in the "Vail Housing Research Choices and Potential Outcomes. March 2005" "...as the supply of entry-level housing diminishes in Vail and prices increase, year round employees looking to own a home are moving down valley where there are more options. As down valley jobs increase in number, Vail faces a challenge in recruiting and retaining qualified employees who may, choose to live closer to where they work." The report further concludes, "...the challenge of housing for both year, round and seasonal workers close to their employment is compounded by the difficulty of providing for parking. Employees who drive to work look for parking that is close to employment. This land can be in prime locations and very expensive. The interplay between housing, transportation and parking should be identified and considered in the evaluation of alternatives." In the Town of Vail (and the larger Eagle County area), residential development contributes to the lack of housing affordable to locals in the fact that new housing development in the Town of Vail is primarily targeted to higher income, out-of-area buyers. The free market and the prices it demands are simply not affordable to the vast majority of persons earning their living in the Town of Vail. As more expensive housing continues to be constructed, the availability of land and developable area on which to provide housing for local residents and workers decreases, resulting in increased land costs and housing prices. Demand for homes from second homeowners force residents and employees earning local wages to compete with higher income households for a limited supply of housing. Local homeownership 2 rates verify this trend. According to Eagle County Assessor's records, local residents own approximately thirty-two percent (32%) of all homes in the Town of Vail, and only twenty-two percent (22%) of the homes built in 2005. Finally, local wages are not keeping up with the real estate market. It is estimated that forty-seven percent (47%) of households in the Town of Vail earned less than one hundred percent (100%) of the area median income ($67,200 for an average two-person family) in 2006 and there are no homes in the Town's housing market that are potentially affordable to households earning less than one hundred forty percent (140°/x) of the area median income ($89,600 for an average two-person family). This condition is compounded by a scarce supply of developable land in the Town of Vail. B. Timber Ridge Redevelopment Timber Ridge also represents another significant opportunity to use the fee- in-lieu. Any money spent at Timber Ridge could only be used for the development of beds in excess of the existing 600. When Town Council adopted Commercial Linkage and Inclusionary Zoning it acknowledged that Timber Ridge represented the single largest opportunity for the Town of Vail to provide new beds beyond developer requirements. Timber Ridge would be an opportunity to "catch-up" with some of the existing 70% of the workforce that lives outside of the Town of Vail. Timber Ridge could provide employee housing for something beyond the regulatory requirements that should provide housing for at least 30% of the net new workforce. While using fee-in-lieu at Timber Ridge would reduce the total number of net new deed restricted employee housing beds provided via fee-in-lieu throughout Town, it still remains a significant employee housing opportunity that would benefit from additional funds being available for redevelopment. C. Chamonix Parcel As the Town moves forward on a master plan for the Chamonix Parcel it is anticipated that additional subsidy besides the land will be required to provide affordable employee housing units. The cost of new construction in Vail. has outpaced local wages. In previous Town employee housing developments (i.e., Red Sandstone Creek, North Trail Townhomes, etc.) the subsidy provided to the homeowner was the value of the land. The Town sold the units for the cost of construction and was able to deliver units affordable to local employees. While the cost of construction is not yet known for the Chamonix Parcel it is anticipated that it may cause the units to cost more than is affordable to local employees. Currently, Vail Commons units are selling for approximately $150 per square foot and the North Trail Townhomes are selling for approximately $180 per square foot. While the price per square foot sounds very affordable by current real estate values it is important to note the challenge local employees face in qualifying to purchase these units. Rising interest rates as well as changing mortgage lending practices may further compound the challenge. 3 I D. 2657 Arosa Drive (a.k.a. the A-Frame Lot) The Town of Vail acquired 2657 Arosa Drive in 1999 for $150,000 as part of the Trapper's Run Exchange. The lot previously had an A-Frame on it. The house was removed in 1999 in anticipation of a new deed restricted duplex with an employee housing unit being built. The employee units were not constructed and the lot has remained vacant since. With the master planning occurring on the Chamonix Parcel and this lot's proximity to the Chamonix Parcel, staff recommends that this lot be included in the design and construction phase of the Chamonix Parcel to include new deed restricted employee housing. Lot Size: .42 acres Zoning: Two-Family Residential Permitted Uses: Single Family Residential Dwellings Two-Family Residential Dwellings A Type I, Il, or IV Employee Housing Unit E. 2507 Arosa Drive (a.k.a the Town Manager's Residence) The Town of Vail acquired 2507 Arosa Drive in 1979 for $39,500 to house the Town Manager and their family. Currently the lot has a 2,973 square foot single-family dwelling on it. With master planning occurring on the Chamonix Parcel and this lot's proximity to the Chamonix Parcel, staff recommends that this lot be evaluated and possibly included in the design and construction phase of the Chamonix Parcel to include new deed restricted employee housing. Lot Size: .33 acres Zoning: Two-Family Residential Permitted Uses: Single Family Residential Dwellings Two-Family Residential Dwellings A Type I, II, or IV Employee Housing Unit F. Lot 14, Vail Intermountain (a.k.a. 2724 Snowberry Drive) Eagle River Water & Sanitation District acquired 2724 Snowberry Drive in 2001 for $450,000 for the new water tank. The lot is over 13 acres and may have value to the Town as both a site for deed restricted employee housing as well as open space. It may be an appropriate location for a new Town Manager's Residence. Additionally, the Water & Sanitation District has interest in two Town owned lots in East Vail adjacent to their water treatment plant and this may represent an opportunity for a partnership. Lot Size: 13.24 acres Zoning: Two-Family Residential 4 Permitted Uses: Single Family Residential Dwelling Two-Family Residential Dwellings A Type I, II, or IV Employee Housing Unit G. Lots 9 & 10, Vail Meadows Filing 2 (a.k.a. 5202 & 5211 Black Gore Drive) The Town of Vail is the owner of two lots adjacent to Eagle River Water & Sanitation District's East Vail water treatment plant. The lots are not currently zoned for residential development, but the Water & Sanitation District has expressed interest in possibly acquiring the lots with zoning deed restricted employee housing units. For operational purposes, it would benefit the Water & Sanitation District to have housing adjacent to the treatment plant. It is possible these lots could be included in a partnership agreement. Lot Size: .66 acres and .7 acres Zoning: Agriculture and Open Space Permitted Uses: Plant and tree nurseries and raising of field, row and tree crops. Public parks, passive and active recreation areas, and open spaces. Single Family Residential Dwellings H. Stratton Flats in Gypsum, CO Stratton Flats, located in Gypsum, CO, is a new housing development that will have 339 new units ranging from one-bedroom condominiums to 2,100 square foot single-family dwellings. The Town of Vail has been approached by the developer, Meritage Development, and Eagle County to participate. III. Fee-in-Lieu Collected to Date To date, the Town of Vail has collected $8,592.07. Fogata Lodge has Planning and Environmental Commission approval to provide the majority of their employee housing via fee-in-lieu. Currently, they will be required to pay $2,783,240.60 at the time their building permit is issued. IV. Action Requested of Town Council Provide staff with direction on the anticipated uses of employee housing fee-in- lieu. V. Attachment Resolution 10, Series of 2007 5 RESOLUTION NO. 10 Series of 2007 A RESOLUTION ESTABLISHING THE 2007 PAYMENT OF FEES-IN-LIEU FOR EACH EMPLOYEE TO BE HOUSED, AS REQUIRED BY CHAPTER12-23, COMMERCIAL LINKAGE, AND FOR EACH SQUARE FOOT, AS REQUIRED BY CHAPTER 12-24, INCLUSIONARY ZONING, VAIL TOWN CODE; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on April 3, 2007, the Vail Town Council will consider the adoption of Ordinance Nos. 7 & 8, Series of 2007, with the intent of establishing Commercial Linkage and Inclusionary Zoning requirements in the Town of Vail; and WHEREAS, pursuant to Sections 12-23-5 and 12-24-6, Methods of Mitigation, payment of fees-in-lieu is one of five (5) methods by which the mitigation of employee housing required may be accomplished; and WHEREAS, in accordance with Sections 12-23-5 and 12-24-6, the fees-in-lieu for each employee to be housed and for each square foot of employee housing required shall be established annually by resolution of the Vail Town Council; and WHEREAS, the Vail Town Council has determined that the proposed fee-in-lieu amounts accurately reflect the affordability gap between a two person household earning 120% of the Area Median Income (AMI) and the 2006 Median Cost per Unit; and . WHEREAS, the Vail Town Council finds that this Resolution furthers the development objectives of the Town and is in the best interest of the Town as it promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances the availability of employee housing within the Town of Vail. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Establishment of Fees-in-Lieu a. The fees-in-lieu for each employee to be housed or for each square foot of employee housing provided in accordance with Chapters 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, shall be established annually by resolution of the Town Council, provided that, in calculating that fee, the Town Council shall incIdde the net cost (total cost less the amount covered by rental or sale income) of real property and all related planning, design, site development, legal, construction and construction management costs of the project, in current dollars, which would be incurred by the Town to provide housing for the employee to be housed or for each square foot of employee housing provided in that year; 1 b. An administrative fee of $3,000/per employee or $3.65 per square foot shall be added to the amount set forth in paragraph a hereof. c.. Fees-in-lieu shall be due and payable prior to the issuance of a building permit for the development. d. The Town shall only use monies collected from fees-in-lieu to provide new employee housing. The calculation formula for fee-in-lieu has been attached for reference (Exhibit A). 2. 2007 Pavment of Fees-in-Lieu Amounts a. Fee-in-lieu per employee (commercial linkage) = $131,385 b. Fee-in-lieu per square foot (inclusionary zoning) = $236.65 3. Effective Date of the Resolution This resolution shall become effective upon the adoption of Ordinance Nos. 7 & 8, Series of 2007, more commonly referred to as the ordinances establishing Commercial Linkage and Inclusionary Zoning in the Town of Vail. INTRODUCED, READ, APPROVED AND ADOPTED this 3rd day of April, 2007. Rodney Slifer, Mayor, Town of Vail ATTEST: Lorelei Donaldson, Town Clerk 2 Exhibit A 2007 Fee-in-Lieu Calculation Formula 120% Area Median Income (2-person household) $76,800 Affordable Monthly Housing Payment $1,920 Property Taxes/Insurance/HOA (20% of Housing Payment) $384 Mortgage Payment $1,536 Maximum Mortgage Amount* $230,872 Affordable Purchase Price $243,023 Average Square Feet of Units 825 2006 Median Price per Square Foot (all units) $528 Cost per Unit $435,600 Affordability Gap/Payment per Unit in Lieu $192,577 *Assumes 5% down, 7% interest for 30 years. Gap per Employee (1.5 emps/household on average) $128,385 Administrative Fee per Employee $3,000 Fee per Square Foot per Employee $233 Administrative Fee per Square Foot per Employee $3.65 Fee-in-Lieu per Employee $1319385 Fee-in-Lieu per Square Foot $236.65 (Note - these figures to be established annually by the Vail Town Council) 3 MEMORANDUM TO: Town Council FROM: Community Development Department DATE: January 8, 2008 SUBJECT: Employee Housing Fee-in-Lieu 1. Introduction On April 3, 2007, the Vail Town Council adopted Ordinances Nos. 7 & 8, Series of 2007, establishing Commercial Linkage and Inclusionary Zoning in 16 of the Town's highest density zone districts. The goal of the two Ordinances is to conjunctively provide housing for at least 30% of the net new workforce generated by new development and redevelopment. Ordinances Nos. 7 & 8 allow for four mitigation methods. One of the four mitigation methods is a fee-in-lieu of providing the employee housing. Simultaneous with the passage of Commercial Linkage and Inclusionary Zoning. was the passage of Resolution 10, Series of 2007, which established the 2007 fee-in-lieu amount. Fee-in-lieu is established per employee as well as per square foot. The established fee-in-lieu per employee for 2007 was $131,385. The fee per employee is required for Commercial Linkage which assesses a development's requirements by net new employees generated. The $131,385 was established to bridge the gap between an employee earning 120% of the Area Median Income and the 2007 median purchase price of an 825 square foot unit in the Town of Vail, plus an administrative fee of $3,000 per employee. The administrative fee is designed to cover the Town's cost for converting the fee-in- lieu to employee housing units. The established fee-in-lieu per square foot for 2007 was $236.65. The fee per square foot is required for Inclusionary Zoning which assesses a development's requirements based on net new square feet constructed. The fee-in-lieu per square foot is based on identical criteria as the employee fee-in-lieu, except it is broken down per square foot. Again, an administrative fee is added. When the Town Council established the fee-in-lieu, buy down units as well as adding additional employee beds in a redevelopment of Timber Ridge were the assumed uses for funds collected. It was also acknowledged that it would be beneficial to have funds for unanticipated employee housing opportunities. In the past, this has predominately been the acquisition of existing housing stock or land. II. Anticipated Uses for Fee-in-Lieu A. Buy Down Units The formula for establishing the fee-in-lieu is based upon the belief that the most common use for fee-in-lieu is going to be purchasing existing housing stock, deed restricting it and reselling it at a reduced price to local employees. There are 6,400 dwelling units in the Town of Vail ? 1,500 of those are currently occupied by local employees 0 624 units are currently deed restricted 0 876 units are not deed restricted Maintaining employee occupants in the 876 non-deed restricted units within the Town of Vail is critical to ensuring the Town's employee base is not further eroded. The incentive for maintaining employee occupied rentals or a for-sale unit is diminished by possible financial gains for converting the use of the unit(s) to vacation or second home use. As stated in the "Vail Housing Research Choices and Potential Outcomes. March 2005" ...as the supply of entry-level housing diminishes in Vail and prices increase, year round employees looking to own a home are moving down valley where there are more options. As down valley jobs increase in number, Vail faces a challenge in recruiting and retaining qualified employees who may choose to live closer to where they work." The report further concludes, "...the challenge of housing for both year round and seasonal workers close to their employment is compounded by the difficulty of providing for parking. Employees who drive to work look for parking that is close to employment. This land can be in prime locations and very expensive. The interplay between housing, transportation and parking should be identified and considered in the evaluation of alternatives. " In the Town of Vail (and the larger Eagle County area), residential development contributes to the lack of housing affordable to locals in the fact that new housing development in the Town of Vail is primarily targeted to higher income, out-of-area buyers. The free market and the prices it demands are simply not affordable to the vast majority of persons earning their living in the Town of Vail. As more expensive housing continues to be constructed, the availability of land and developable area on which to provide housing for local residents and workers decreases, resulting in increased land costs and housing prices. Demand for homes from second homeowners force residents and employees earning local wages to compete with higher income households for a limited supply of housing. Local homeownership 2 rates verify this trend. According to Eagle County Assessor's records, local residents own approximately thirty-two percent (32%) of all homes in the Town of Vail, and only twenty-two percent (22%) of the homes built in 2005. Finally, local wages are not keeping up with the real estate market. It is estimated that forty-seven percent (47%) of households in the Town of Vail earned less than one hundred percent (100%) of the area median income ($67,200 for an average two-person family) in 2006 and there are no homes in the Town's housing market that are potentially affordable to households earning less than one hundred forty percent (140%) of the area median income ($89,600 for an average two-person family). This condition is compounded by a scarce supply of developable land in the Town of Vail. B. Timber Ridge Redevelopment Timber Ridge also represents another significant opportunity to use the fee- in-lieu. Any money spent at Timber Ridge could only be used for the development of beds in excess of the existing 600. When Town Council adopted Commercial Linkage and Inclusionary Zoning it acknowledged that Timber Ridge represented the single largest opportunity for the Town of Vail to provide new beds beyond developer requirements. Timber Ridge would be an opportunity to "catch-up" with some of the existing 70% of the workforce that lives outside of the Town of Vail. Timber Ridge could provide employee housing for something beyond the regulatory requirements that should provide housing for at least 30% of the net new workforce. While using fee-in-lieu at Timber Ridge would reduce the total number of net new deed restricted employee housing beds provided via fee-in-lieu throughout Town, it still remains a significant employee housing opportunity that would benefit from additional funds being available for redevelopment. C. Chamonix Parcel As the Town moves forward on a master plan for the Chamonix Parcel it is anticipated that additional subsidy besides the land will be required to provide affordable employee housing units. The cost of new construction in Vail has outpaced local wages. In previous Town employee housing developments (i.e., Red Sandstone Creek, North Trail Townhomes, etc.) the subsidy provided to the homeowner was the value of the land. The Town sold the units for the cost of construction and was able to deliver units affordable to local employees. While the cost of construction is not yet known for the Chamonix Parcel it is anticipated that it may cause the units to cost more than is affordable to local employees. Currently, Vail Commons units are selling for approximately $150 per square foot and the North Trail Townhomes are selling for approximately $180 per square foot. While the price per square foot sounds very affordable by current real estate values it is important to note the challenge local employees face in qualifying to purchase these units. Rising interest rates as well as changing mortgage lending practices may further compound the challenge. ' 3 r f D. 2657 Arosa Drive (a.k.a. the A-Frame Lot) The Town of Vail acquired 2657 Arosa Drive in 1999 for $150,000 as part of the Trapper's Run Exchange. The lot previously had an A-Frame on it. The house was removed in 1999 in anticipation of a new deed restricted duplex with an employee housing unit being built. The employee units were not constructed and the lot has remained vacant since. With the master planning occurring on the Chamonix Parcel and this lot's proximity to the Chamonix Parcel, staff recommends that this lot be included in the design and construction phase of the Chamonix Parcel to include new deed restricted employee housing. Lot Size: .42 acres Zoning: Two-Family Residential Permitted Uses: Single Family Residential Dwellings Two-Family Residential Dwellings A Type I, II, or IV Employee Housing Unit E. 2507 Arosa Drive (a.k.a the Town Manager's Residence) The Town of Vail acquired 2507 Arosa Drive in 1979 for $39,500 to house the Town Manager and their family. Currently the lot has a 2,973 square foot single-family dwelling on it. With master planning occurring on the Chamonix Parcel and this lot's proximity to the Chamonix Parcel, staff recommends that this lot be evaluated and possibly included in the design and construction phase of the Chamonix Parcel to include new deed restricted employee housing. Lot Size: .33 acres Zoning: Two-Family Residential Permitted Uses: Single Family Residential Dwellings Two-Family Residential Dwellings A Type I, II, or IV Employee Housing Unit F. Lot 14, Vail Intermountain (a.k.a. 2724 Snowberry Drive) Eagle River Water & Sanitation District acquired 2724 Snowberry Drive in 2001 .for $450,000 for the new water tank. The lot is over 13 acres and may have value to the Town as both a site for deed restricted employee housing as well as open space. It may be an appropriate location for a new Town Manager's Residence. Additionally, the Water & Sanitation District has interest in two Town owned lots,in East Vail adjacent to their water treatment plant and this may represent an opportunity for a partnership. Lot Size: 13.24 acres Zoning: Two-Family Residential 4 Permitted Uses: Single Family Residential Dwelling Two-Family Residential Dwellings A Type I, II, or IV Employee Housing Unit G. Lots 9 & 10, Vail Meadows Filing 2 (a.k.a. 5202 & 5211 Black Gore Drive) The Town of Vail is the owner of two lots adjacent to Eagle River Water & Sanitation District's East Vail water treatment plant. The lots are not currently zoned for residential development, but the Water & Sanitation District has expressed interest in possibly acquiring the lots with zoning deed restricted employee housing units. For operational purposes, it would benefit the Water & Sanitation District to have housing adjacent to the treatment plant: It is possible these lots could be included in a partnership agreement. Lot Size: .66 acres and .7 acres Zoning: Agriculture and Open Space Permitted Uses: Plant and tree nurseries and raising of field, row and tree crops. Public parks, passive and active recreation areas, and open spaces. Single Family Residential Dwellings H. Stratton Flats in Gypsum, CO Stratton Flats, located in Gypsum, CO, is a new housing development that will have 339 new units ranging from one-bedroom condominiums to 2,100 square foot single-family dwellings. The Town of Vail has been approached by the developer, Meritage Development, and Eagle County to participate. III. Fee-in-Lieu Collected to Date To date, the Town of Vail has collected $8,592.07. Fogata Lodge has Planning and Environmental Commission approval to provide the majority of their employee housing via fee-in-lieu. Currently, they will be required to pay $2,783,240.60 at the time their building permit is issued. IV. Action Reauested of Town Council Provide staff with direction on the anticipated uses of employee housing fee-in- lieu. V. Attachment Resolution 10, Series of 2007 5 RESOLUTION NO. 10 Series of 2007 A RESOLUTION ESTABLISHING THE 2007 PAYMENT OF FEES-IN-LIEU FOR EACH EMPLOYEE TO BE HOUSED, AS REQUIRED BY CHAPTER12-23, COMMERCIAL LINKAGE, AND FOR EACH SQUARE FOOT, AS REQUIRED BY CHAPTER 12-24, INCLUSIONARY ZONING, VAIL TOWN CODE; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on April 3, 2007, the Vail Town Council will consider the adoption of Ordinance Nos. 7 & 8, Series of 2007, with the intent of establishing Commercial Linkage and Inclusionary Zoning requirements in the Town of Vail; and WHEREAS, pursuant to Sections 12-23-5 and 12-24-6, Methods of Mitigation, payment of fees-in-lieu is one of five (5) methods by which the mitigation of employee housing required may be accomplished; and WHEREAS, in accordance with Sections 12-23-5 and 12-24-6, the fees-in-lieu for each employee to be housed and for each square foot of employee housing required shall be established annually by resolution of the Vail Town Council; and WHEREAS, the Vail Town Council has determined that the proposed fee-in-lieu amounts accurately reflect the affordability gap between a two person household earning 120% of the Area Median Income (AMI) and the 2006 Median Cost per Unit; and WHEREAS, the Vail Town Council finds that this Resolution furthers the development objectives of the Town and is in the best interest of the Town as it promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances the availability of employee housing within the Town of Vail. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Establishment of Fees-in-Lieu a. The fees-in-lieu for each employee to be housed or for each square foot of employee housing provided in accordance with Chapters 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, shall be established annually by resolution of the Town Council, provided that, in calculating that fee, the Town Council shall incIdde the net cost (total cost less the amount covered by rental or sale income) of real property and all related planning, design, site development, legal, construction and construction management costs of the project, in current dollars, which would be incurred by the Town to provide housing for the employee to be housed or for each square foot of employee housing provided in that year; b. An administrative fee of $3,000/per employee or $3.65 per square foot shall be added to the amount set forth in paragraph a hereof. C. Fees-in-lieu shall be due and payable prior to the issuance of a building permit for the development. d. The Town shall only use monies collected from fees-in-lieu to provide new employee housing. The calculation formula for fee-in-lieu has been attached for reference (Exhibit A). 2. 2007 Pavment of Fees-in-Lieu Amounts a. Fee-in-lieu per employee (commercial linkage) =_ $131,385 b. Fee-in-lieu per square foot (inclusionary zoning) _ $236.65 3. Effective Date of the Resolution This resolution shall become effective upon the adoption of Ordinance Nos. 7 & 8, Series of 2007, more commonly referred to as the ordinances establishing Commercial Linkage and Inclusionary Zoning in the Town of Vail. INTRODUCED, READ, APPROVED AND ADOPTED this 3`d day of April, 2007. Rodney Slifer, Mayor, Town of Vail ATTEST: Lorelei Donaldson, Town Clerk 2 Exhibit A 2007 Fee-in-Lieu Calculation Formula 120% Area Median Income (2-person household) $76,800 Affordable Monthly Housing Payment $1,920 Property Taxes/Insurance/HOA (20% of Housing Payment) $384 Mortgage Payment $1,536 Maximum Mortgage Amount* $230,872 Affordable Purchase Price $243,023 Average Square Feet of Units 825 2006 Median Price per Square Foot (all units) $528 Cost per Unit $435,600 Affordability Gap/Payment per Unit in Lieu $192,577 *Assumes 5% down, 7% interest for 30 years. Gap per Employee (1.5 emps/household on average) $128,385 Administrative Fee per Employee $31,000 Fee per Square Foot per Employee $233 Administrative Fee per Square Foot per Employee $3.65 Fee-in-Lieu per Employee $131,385 Fee-in-Lieu per Square Foot $236.65 (Note - these figures to be established annually by the Vail Town Council) 3 MEMORANDUM TO: Vail Town Council FROM: Department of Public Works DATE: January 8, 2007 SUBJECT: Red Sandstone Park Playground Renovation Backaround In March of 2002, the Town Council adopted the Town of Vail Plavaround Safetv and Improvement Plan. The goal of this plan is to bring all of the town's play areas into compliance with current playground safety guidelines and to update older equipment as needed. We have made significant progress towards completing the Plan and, at this time, seven of the town's nine play areas have been altered or reconstructed to meet the guidelines. Concurrently, with the renovations of these play areas, Vail is becoming well known in the region as having the most exciting playgrounds around. The 2008 budget provides funding for the renovation/updating of the Red Sandstone Park playground. The purpose of this Work Session discussion is to: a) Outline the work required for the renovation b) Provide the Town Council with information about the design process c) Discuss the project's budget and schedule d) Gather feedback from the Council Existina Conditions The Red Sandstone Park Playground was constructed by Town of Vail crews in the late 1980's. The custom wooden structures and play features are terraced into the hillside and accented by boulder heaps, turf-covered embankments, and hand carved wooden totems. The existing restroom was remodeled last summer, and the park also features a sand volleyball court, picnic tables, and a small parking lot. Reauired Improvements ? Replace existing "School Aged" structure o Safety issues due to interior ladders/deck heights o Limited play value (only one slide, no climbers) o Use-zone concerns ? Replace pea gravel surfacing with wood fiber surfacing o Existing surfacing is very high maintenance with low impact attenuation ? Expand use-zones for "Pre-school" structure and swings ? Provide accessibility to park, playground, and restroom for persons with disabilities o There is currently no compliant access to the park from the parking lot or the bike path ? Provide alternative/updated play equipment for merry-go-round and tire swings o The existing merry-go-round is non-compliant with safety guidelines o The tire swings were recently removed as required by the town's insurance carrier Other Project Guidelines ? Art elements will be incorporated as play features or site elements ? Existing structures and play elements will be reused as much as is practical ? The design will be a mix of custom made and manufactured play pieces ? The project will include other minor park alterations as needed: o Improvements to volleyball court o Installation of a fence between the play area and the Frontage Road rY ' .,a Desian Process ? Public Participation Staff will host a neighborhood Open House to gather initial comments/desires/concerns in regards to types of play equipment, play area themes, public art, and other park concerns. Notification for the Open House will be advertised in the Vail Daily, and neighbors who live in close proximity to the park will be notified by mail. After the Open House, all further public design discussions will be held at regular Town Council Work Session and Evening Meetings. ? Art in Public Places In each of the recently. renovated play areas, art has been included in the design in the form of site features, play elements, or full scale play structures. In each case, the Art in Public Places Board (AIPP) has helped staff select an appropriate artist who becomes part of the design team. Using feedback from the Open House/Town Council, staff intends to discuss this project with Al PP in early February to initiate the selection of an artist. ? Council Input In addition to this initial discussion, Council will be asked for comments at various stages of the design process including Conceptual Design, Final Design, and prior to construction to approve a construction contract. Proiect Budaet The funding provided in the 2008 budget is $444,000. Proiect Schedule January-February 2008 Public Input, Artist Selection March-April 2008 Conceptual Design May-July 2008 Final Design, Construction Documents August 2008 Bidding Process September-November 2008 Construction This is a tentative schedule and is dependant upon the artist selection process, availability of contractors, and fall construction weather. Reauested Council Action Provide comments and recommendations in regards to the Required Improvements, Design Process, Budget, and/or Schedule. Red Sandstone Park Existing Play Area ;d Sandstone Park Play ACea :xisting MEMORANDUM' TO: Town Council FROM: Community Development Department DATE: January 8, 2008 SUBJECT: Chamonix Site Master Plan Kick-Off Meeting Staff: Scot Hunn PURPOSE The "Kick-Off' meeting is proposed for the purpose of introducing the Chamonix Site Master Plan project Consultant Team to the Council, reviewing the proposed project schedule, goals and objectives, and establishing expectations and parameters for the project. . . Staff also requests that the Council take action at the evening session on January 8, 2008, to appoint an "Advisory Committee", comprised of representatives from the Town Council, the Planning and Environmental Commission, the Housing Authority, the Vail Fire Department, Community Development Department and two Citizens at Large. The purpose of the Advisory Committee will be to aid the Town Council in steering the master planning process for the Chamonix Site and to ensure that certain stakeholder groups remain an integral part of the process. 11. BACKGROUND Selection of Consultant Team On November 19, 2007, following the review of proposals and the completion of interviews with consultant teams interested in providing master planning, architecture and cost estimation services to the Town, Staff conducted a meeting with the Chamonix Site Master Plan "Selection Committee", comprised of Town Staff and citizens, to select a preferred consultant team. At this meeting, the committee recommended that the Town contract with Stan Clauson Associates, Studio B Architects, Drexel Barrell Engineering and Fenton Construction (the "Consultant Team") to aid in the Chamonix Site Master Plan project. Town Staff has since entered into negotiations with the Consultant Team in anticipation of executing a contract for services by January 8, 2008. On December 12, 2007, Staff held a meeting with the Consultant Team to discuss terms of a contract for services, as well as, the proposed project scope, process, timelines and individual tasks to be completed. Also, the Team and Staff discussed upcoming meetings to be scheduled with the Vail Town Council and the formation of an Advisory Committee to aid in the planning and design process. On December 18, '2007, Staff presented the Council with a brief update of the progress made, to date, to select a Consultant Team and to negotiate a contract for services. At that time, Staff also informed the Council of a proposal to hold a "kick-off' meeting in.early 2008. Project Kick-Off The Kick-Off Meeting is proposed to achieve the following: • Introduce Consultant Team to the Council and present brief overview of relevant, regional work by Team (power point presentation) - 10 minutes • Briefly discuss previous master plan efforts for the Chamonix Site - 5-10 minutes • Discuss and clarify goals, objectives and "parameters" for the current project (power point presentation) - 30 minutes • Establish expectations -.roles of Council, Staff and Advisory Committee -10-20 minutes • Appoint representatives to the Advisory Committee - 10 minutes (evening session) ACTION REQUIRED Staff recommends that the Town Council appoints the following members to the Chamonix Site Master Plan Advisory Committee: Mark Gordon Vail Town Council Margaret Rogers Vail Town Council Rollie Kjesbo. Planning and Environmental Commission David Viele Planning and Environmental Commission Mark Ristow Housing Authority Ethan Moore Housing Authority Mark Miller Vail Fire Department Craig Davis Vail Fire Department Bob Armour Citizen at Large Jack Bergey Citizen at Large Scot Hunn Community Development Department IV. ATTACHMENTS Attachment A - Draft Project/Fee Schedule by Stan Clauson Associates, Inc. VAIL: CHAMONIX MASTER PLAN EFFORT Performance Schedule PHASEI Task 1.1 Information Review and Analysis of Previous Master Plan ................Dec - Jan 2007 Task 1.2 Project Kick-Off Worksession with Town Council ..................................Jan 8, 2007 • Reintroduce project and previous master plan efforts • Review current master plan process and schedule • Visioning Session - goals, opportunities for new circumstances • Set-up Advisory Committee, Task Force Groups & Meeting Schedule Meetings with staff as needed $2,754 (Task I.1 & Task 1.2) Task 1.3 Advisory Committee Initial Meeting .........................................Jan 16, 2008 (1O:am) • Identify project parameters • Correlate groups goals into a vision statement • Update Steering Committee • Initiate Three Alternatives Advisory Committee appointed by Council and anticipated to include citizens, Council members, Planning Environmental Commission members, Fire Department and Public Safety, and Staff. Suggested Advisory Committee total membership of 15 persons maximum. Monthly or bi-monthly updates (via memo form) will be provided to each of the groups represented on the Advisory Committee to assist representatives in keeping their groups informed on the project. Advisory Committee is intended to offer a balanced deliberation of issues and concept, and efficiently bring all interested parties together, thereby reducing replicated meetings for individual groups. The Advisory Committee is also a forum for bringing together broader support of goals and/or solutions for the project. Up to four meetings are anticipated. $4,845 (Task 1.3) Task 1.4 Meetings with Targeted Focus Groups .................................scheduled as needed Up to four targeted focus groups may be created. These groups are likely to be Emergency Services Group; Employee Housing Group; Mixed-Use Group; and Abutters Group. Focus groups are intended to represent specific interests and may be comprised of citizens, staff, appointed or elected officials). Focus Group meetings will be announced on the Community Calendar. • Review project parameters and vision • Obtain specific information and identify issues and concerns 1/2/2008 STAN CLAUSON ASSOCIATES, INC Task 1.5 Develop and Evaluate Alternatives ..............................................Feb - April 2008 • Team works to develop and refine three alternative approaches • Meetings with Advisory Committee to develop and evaluate up to three alternatives • Study input, possible revisions to alternatives Deliverables - Chamonix Site: • Narrative outlining the Project Design Parameters $29,630 (Task 1.4 & 1.5) Task 1.6 Present Revised Alternatives ............................................ April 2008 • Final meeting with Advisory Committee on revised alternatives • Worksession with Town Council on revised alternatives • Study input, possible revisions to alternatives • Coordinate trip generation and traffic impact assessment of various land use scenarios with FHU Deliverables - Chamonix Site: • Three alternative development scenarios in graphic form with supporting narrative, along with an evaluation of the extent to which each meets project goals • Building Program spreadsheet • Conceptual infrastructure improvements for each scenario • Preliminary Conceptual Cost Estimates for Three Design Alternatives • Pro-Forma for Three Design Alternatives Deliverables - Fire Station Site: • Building Program Spreadsheet • Building Program Descriptive Sheets • Conceptual Floors Plans • Conceptual Site Plans • Site Massing Model $71,565 (Task 1.6) Task 1.7 Selection of Preferred Alternative ......................................April - May 2008 • Public Hearings with PEC & Town Council to select plan • Outline zoning & dimensional requirements for selected plan • Complete draft master plan • Coordinate Implementation with Vail Staff Deliverables: • Complete Master Plan Document $17,120 (Task 1.7) 1/2/2008 STAN CLAUSON ASSOCIATES, INC 2 Performance Schedule Summarv Task 1.1 & 1.2 $2,754 (SCA 865 + DB&C 1,880) Task 1.3 $4,845 (SCA 1,420 + SB 2,700 + DB&C 725) Task 1.4 & 1.5 $29,630 (SCA 10,205 + SB 18,700 + DB&C 725) Task 1.6 $71,565 (SCA 13,230 + SB 27,700 + DB&C 30,635) Task 1.7 $17,120 (SCA 10,675 + SB 2,700 + DB&C 3,745) SUBTOTAL 125,905 4,640 Reimbursable Expenses &Contingencies TOTAL $130,545 I 1/2/2008 STAN CLAUSON ASSOCIATES, INC 3 MEMORANDUM TO: Town Council FROM: Community Development Department DATE: January 8, 2008 SUBJECT: Chamonix Site Master Plan Kick-Off Meeting Staff: Scot Hunn PURPOSE The "Kick-Off" meeting is proposed for the purpose of introducing the Chamonix Site Master Plan project Consultant Team to the Council, reviewing the proposed project schedule, goals and objectives, and establishing expectations and parameters for the project. Staff also requests that the Council take action at the evening session on January 8, 2008, to appoint an "Advisory Committee", comprised of representatives from the Town Council, the Planning and Environmental Commission, the Housing Authority, the Vail Fire Department, Community Development Department and two Citizens at Large. The purpose of the Advisory Committee will be to aid the Town Council in steering the master planning process for the Chamonix Site and to ensure that certain stakeholder groups remain an integral part of the process. III. BACKGROUND Selection of Consultant Team On November 19, 2007, following the review of proposals and the completion of interviews with consultant teams interested in providing master planning, architecture and cost estimation services to the Town, Staff conducted a meeting with the Chamonix Site Master Plan "Selection Committee", comprised of Town Staff and citizens, to select a preferred' consultant team. At this meeting, the committee recommended that the Town contract with Stan Clauson Associates, Studio B Architects, Drexel Barrell Engineering and Fenton Construction (the "Consultant Team") to aid in the Chamonix Site Master Plan project. Town Staff has since entered into negotiations with the Consultant Team in anticipation of executing a contract for services by January 8, 2008. On December 12, 2007, Staff held a meeting with the Consultant Team to discuss terms of a contract for services, as well as, the proposed project scope, process, timelines and individual tasks to be completed. Also, the Team and Staff discussed upcoming meetings to be scheduled with the Vail Town Council and the formation of an Advisory Committee to aid in the planning and design process. On December 18, 2007, Staff presented the Council with a brief update of the progress made, to date, to select a Consultant Team and to negotiate a contract for services. At that time, Staff also informed the Council of a proposal to hold a "kick-off' meeting in early 2008. Project Kick-Off The Kick-Off Meeting is proposed to achieve the following: • Introduce Consultant Team to the Council and present brief overview of relevant, regional work by Team (power point presentation) - 10 minutes • Briefly discuss previous master plan efforts for the Chamonix Site - 5-10 minutes • Discuss and clarify goals, objectives and "parameters" for the current project (power point presentation) - 30 minutes • Establish expectations - roles of Council, Staff and Advisory Committee - 10-20 minutes • Appoint representatives to the Advisory Committee - 10 minutes (evening session) ACTION REQUIRED Staff recommends that the Town Council appoints the following members to the Chamonix Site Master Plan Advisory Committee: Mark Gordon Vail Town Council Margaret Rogers Vail Town Council Rollie Kjesbo. Planning and Environmental Commission David Viele Planning and Environmental Commission Mark Ristow Housing Authority Ethan Moore Housing Authority Mark Miller Vail Fire Department Craig Davis Vail Fire Department Bob Armour Citizen at Large Jack Bergey Citizen at Large Scot Hunn Community Development Department IV. ATTACHMENTS Attachment A - Draft Project/Fee Schedule by Stan Clauson Associates, Inc. VAIL: CHAMONIX MASTER PLAN EFFORT Performance Schedule PHASEI Task 1.1 Information Review and Analysis of Previous Master Plan ................Dec - Jan 2007 Task 1.2 Project Kick-Off Worksession with Town Council ..................................Jan 8, 2007 • Reintroduce project and previous master plan efforts • Review current master plan process and schedule • Visioning Session - goals, opportunities for new circumstances • Set-up Advisory Committee, Task Force Groups & Meeting Schedule Meetings with staff as needed $2,754 (Task 1.1 & Task 1.2) Task 1.3 Advisory Committee Initial Meeting .........................................Jan 16, 2008 (10:am) • Identify project parameters • Correlate groups goals into a vision statement • Update Steering Committee • Initiate Three Alternatives Advisory Committee appointed by Council and anticipated to include citizens, Council members, Planning Environmental Commission members, Fire Department and Public Safety, and Staff. Suggested Advisory Committee total membership of 15 persons maximum. Monthly or bi-monthly updates (via memo form) will be provided to each of the groups represented on the Advisory Committee to assist representatives in keeping their groups informed on the project. Advisory Committee is intended to offer a balanced deliberation of issues and concept, and efficiently bring all interested parties together, thereby reducing replicated meetings for individual groups. The Advisory Committee is also a forum for bringing together broader support of goals and/or solutions for the project. Up to four meetings are anticipated. $4,845 (Task 1.3) Task 1.4 Meetings with Targeted Focus Groups .................................scheduled as needed Up to four targeted focus groups may be created. These groups are likely to be Emergency Services Group; Employee Housing Group; Mixed-Use Group; and Abutters Group. Focus groups are intended to represent specific interests and may be comprised of citizens, staff, appointed or elected officials). Focus Group meetings will be announced on the Community Calendar. • Review project parameters and vision • Obtain specific information and identify issues and concerns 1/2/2008 STAN CLAUSON ASSOCIATES, INC I Task 1.5 Develop and Evaluate Alternatives ..............................................Feb - April 2008 • Team works to develop and refine three alternative approaches • Meetings with Advisory Committee to develop and evaluate up to three alternatives • Study input, possible revisions to alternatives Deliverables - Chamonix Site: • Narrative outlining the Project Design Parameters $29,630 (Task 1.4 & 1.5) Task 1.6 Present Revised Alternatives ............................................ April 2008 • Final meeting with Advisory Committee on revised alternatives • Worksession with Town Council on revised alternatives • Study input, possible revisions to alternatives • Coordinate trip generation and traffic impact assessment of various land use scenarios with FHU Deliverables - Chamonix Site: • Three alternative development scenarios in graphic form with supporting narrative, along with an evaluation of the extent to which each meets project goals • Building Program spreadsheet • Conceptual infrastructure improvements for each scenario • Preliminary Conceptual Cost Estimates for Three Design Alternatives • Pro-Forma for Three Design Alternatives Deliverables - Fire Station Site: • Building Program Spreadsheet • Building Program Descriptive Sheets • Conceptual Floors Plans • Conceptual Site Plans • Site Massing Model $71,565 (Task 1.6) Task 1.7 Selection of Preferred Alternative .....................................April - May 2008 • Public Hearings with PEC & Town Council to select plan • Outline zoning & dimensional requirements for selected plan • Complete draft master plan • Coordinate Implementation with Vail Staff Deliverables: • Complete Master Plan Document $17,120 (Task 1.7) 1/2/2008 STAN CLAUSON ASSOCIATES, INC 2 r Performance Schedule Summary Task 1.1 & 1.2 $2,754 (SCA 865 + DB&C 1,880) - Task 1.3 $4,845 (SCA 1,420 + SB 2,700 + DB&C 725) Task 1.4 L 1.5 $29,630 (SCA 10,205 + SB 18,700 + DB&C 725) Task 1.6 $71,565 (SCA 13,230 + SB 27,700 + DB&C 30,635) Task 1.7 $17,120 (SCA 10,675 + SB 2,700 + DB&C 3,745) SUBTOTAL 125,905 4,640 Reimbursable Expenses &Contingencies TOTAL $130,545 1/2/2008 STAN CLAUSON ASSOCIATES, INC 3 EAGLE RIVER WATER & SANITATION DISTRICT 846 Forest Road • Vail, Colorado 81657 (970) 476-7480 0 FAX (970) 476-4089 www.erwsd.org MEMORANDUM TO: Vail Town Council FROM: Diane Johnson, Community Relations Manager DATE: January 2, 2008 RE: Settlement Agreement with Denver Water We appreciate the opportunity to provide context to the historic settlement agreement that Eagle River Water & Sanitation District and Upper Eagle Regional Water Authority reached with Denver Water on November 28. Glenn Porzak, Water Counsel for ERWSD and UERWA, will present the details of the agreement that resolved two cases before the Water Court in which Denver's diligence was challenged on water rights acquired in the 1950's, 60's and 70's. He'll review the 2002 case, which had six days of trial in June 2007 and was scheduled for two more days in November, and a case filed in 2007 challenging diligence on Gore Creek and its tributaries, among others. The settlement resolved both the 2002 and 2007 cases. Bob Warner, Eagle River Water & Sanitation District Board Chairman, Steve Friedman, Upper Eagle Regional Water Authority Board Chairman, and Dennis Gelvin, Eagle River Water & Sanitation District General Manager, will be available for questions or comments. Several attachments are included to provide a framework for understanding the agreement. • Press Release • "Happier Headwaters" editorial from December 6, 2007 Vail Daily (Six articles have been published in the Vail Daily, Summit Daily, and Rocky Mountain News) • Resolution adopted by the Eagle Board of County Commissioners on December 11, 2007 • Charts summarizing the challenged water rights; one by individual detail, the other combined in general • A map illustrating the affected creeks and rivers along with the tunnels and conduits that could have been built from Eisenhower Tunnel west to Wolcott and north to State Bridge • A selective list of Colorado water terms The District and Authority are very interested in helping the community understand the significance of the settlement and of the negotiations that continue between many West Slope entities and Front Range water agencies to resolve long standing issues. To that end, we held a community news briefing on December 3 with 41 residents in attendance. We continue to make presentations to local government agencies and will present follow up information at the Eagle River Watershed Council's Waterwise Wednesday forum on March 26. Please contact Diane Johnson at 477-5457 with other groups you believe will benefit from this information. AV WATER, WASTEWATER, OPERATIONS He MANAGEMENT SERVICES F:\15WSD\9ComRel\Board Reports\Vail Town Council.doc 4\\ Ir EAGLE RIVER WATER & SANITATION DISTRICT ?/ UPPER EAGLE REGIONAL WATER AUTHORITY 846 Forest Road + Vail, Colorado 81657 Phone (970) 476-7480 ? FAX (970) 476-4089 www.erwsd.org FOR IMMEDIATE RELEASE November 29, 2007 Contact: Diane Johnson, (970) 477-5457 Community Relations Manager HISTORIC WATER SETTLEMENT (Vail) The Boards of Directors of Eagle River Water & Sanitation District ("District") and Upper Eagle Regional Water Authority ("Authority ") announced terms of a Settlement Agreement reached with Denver Water on November 28. The settlement came just prior to the continuation of a Water Court trial, brought by the District and Authority, which challenged Denver's "diligence" in developing water rights acquired in the 1950's, 60's and 70's. The settlement was approved Wednesday by the Water Court in Glenwood Springs and results in the abandonment of most of Denver's water rights in Eagle County. "The settlement eliminated the possibility of future transmountain diversions from Gore Creek, the Piney River, and the Upper Eagle River, but left open the possibility of jointly developing.a reservoir near Wolcott that could benefit both west and east slope users" stated Glenn Porzak, attorney for the District and Authority. However, Denver expressly abandoned the transmountain diversion component of the water right for the Wolcott area reservoir, thereby eliminating plans that would have diverted that water to the Denver Metro area, according to Porzak. Bob Warner and Steve Friedman, the board chairmen of the District and Authority, respectively, applauded the negotiations which resulted in a mutual resolution. "The outcome of this case is an incredible accomplishment for Eagle County residents and the entire West Slope" stated Warner. "This is very encouraging as we continue to work through complex statewide water matters" confirmed Friedman. Eric Kuhn, General Manager of the Colorado River District, added "We hope this is the first step in what will be a much broader agreement among West Slope partners and the Front Range to address environmental, recreational and water supply needs on both sides of the Continental Divide." At issue were water rights held by Denver Water that reached throughout eastern Eagle County and whether those rights could satisfy state water law requirements to remain on the books. Colorado water law requires holders of "conditional" water rights to prove to a water court judge every six years that plans to develop the project are still moving forward and that the owner can and will put the rights to beneficial use - an act called "diligence". The District and Authority opposed Denver Water's 2002 diligence proceedings on a variety of grounds. After negotiations stalled, the case was set for trial in 2006 and ultimately commenced WATER, WASTEWATER, OPERATIONS & MANAGEMENT SERVICES EAGLE RIVER WATER & SANITATION DISTRICT UPPER EAGLE REGIONAL WATER AUTHORITY in June 2007. With the trial about to resume and broad negotiations having continued between Denver and a variety of west slope agencies, the parties crafted a settlement resolving the 2002 case as well as a newly initiated 2007 case that also contested diligence on additional Denver water rights in the same vicinity. "A real debt of gratitude goes to the District and Authority for taking up this challenge and protecting the rivers in Eagle County," stated Bruce Baumgartner, Eagle County Manager. The abandoned water rights potentially represented one of Colorado's largest transmountain diversion projects. As alluded to by Warner and Friedman, the settlement comes while negotiations continue between several water agencies to solve a number of complex issues affecting the future of water in Colorado. All parties to the settlement stressed that no agreement has been reached as to whether or when a Wolcott reservoir might be built. The settlement merely preserves a Wolcott reservoir as an option that will be further discussed in the ongoing effort to remedy long standing difficulties in Colorado water. For more information Diane Johnson - ERWSD Community Relations Manager: 970.477.5457 Glenn Porzak - Managing Partner, Porzak Browning & Bushong, LLP: 303.443.6800 Eagle River Water & Sanitation District provides efficient, effective, and reliable water and wastewater utility services in a manner that respects the natural environment. ERW&SD's water service area is Vail and Red Sky Ranch, while the sanitation service area is Vail to Wolcott. Upper Eagle Regional Water Authority provides water service to Arrowhead, Avon, Bachelor Gulch, Beaver Creek, Berry Creek, Cordillera, Eagle-Vail and Edwards through an operations and management agreement with Eagle River Water & Sanitation District. WATER, WASTEWATER, OPERATIONS & MANAGEMENT SERVICES Vail Daily News for Vail and Beaver Creek Colorado - Commentary Vaff jjafly Daily Editorial: Happier headwaters Vail Daily Editorial Board Vail CO, Colorado December 6, 2€ 07 Page 1 of 1 Water in the West has a complicated history and an even more tangled future as more and more people populate areas of the country that can barely sustain cactus. As denizens of a headwater county from which much of that water emanates, we have a huge stake in how much of this vital resource is siphoned off to the Front Range and beyond. Last week, a deal came together that helped ensure a good portion of the water in Eagle County's streams remains here. We've run a story about it and will explore it further, but it's hard to overemphasize how important this is in the big picture. The fact is all-mighty Denver Water relinquished most of the water rights it held in our county, with the end result being we don't have to worry so much about our stream flows being reduced - especially in springtime - by Denver folks watering their lawns. This was a great effort by the folks at the Eagle River Water & Sanitation District, the Upper Eagle Regional Water Authority and their legal representative, Glenn Porzak. It was a nifty bit of finagling and creativity on Porzak's part that helped convince Denver Water that, ultimately, their ability to exercise the water rights they owned in Eagle County were limited, at best. By arriving at a settlement, Denver Water headed off a lawsuit they would have stood little chance of winning. Even so, Denver Water does deserve credit for taking a more reality-based view as opposed to their historic record of grabbing and retaining anything they can get. The thirst of the Front Range cities for mountain water will only increase, and historically the headwater counties end up with the short end of the stick. With cautious optimism, it's good to see some more enlightened negotiation on the table while recognizing the efforts of our local water stewards. -Alex Miller for the Editorial Board BACK 49 Commissioner moved adoption of the following Resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO RESOLUTION NO. 2007 - A RESOLUTION COMMENDING THE WATER COMMISSIONERS OF THE CITY AND COUNTY OF DENVER, THE EAGLE RIVER WATER AND SANITATION DISTRICT, AND THE Lirrv R EAGLE REGIONAL WATER AUTHORITY AND SUPPORTING THEIR RECENT SE r .t LEMENT REGARDING CONDITIONAL WATER RIGHTS IN EAGLE COUNTY WHEREAS, Eagle County recognizes the environmental, cultural, and economic values of our streams and rivers; and WHEREAS, it is Eagle County's policy to preserve and enhance the County's river and stream systems for the benefit of these values; and WHEREAS, water on the West Slope and within Eagle County is a limited resource; and WHEREAS, the Board of Water Commissioners of the City and County of Denver, the Eagle River Water & Sanitation District, and the Upper Eagle Regional Water Authority have settled Water Court litigation through the cancellation of substantial conditional water rights historically claimed by Denver for diversions from within Eagle County and the limitation and reconfiguration of other such rights for a potential cooperative joint-benefit project; and WHEREAS, the County Commissioners believe that this settlement is both precedent setting and will improve the future of both Eagle County citizens and residents of the State of Colorado; and WHEREAS, the County Commissioners wish to go on record to wholeheartedly congratulate and support the participants in that settlement. NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Eagle County, Colorado that: The Board of County Commissioners of Eagle County, Colorado commend the Board of Water Commissioners of the City and County of Denver for their leadership in resolving the long standing dispute between the East and West slope regions of the State of Colorado concerning Denver's water rights claims in Eagle County, and the Board of the Eagle River Water & Sanitation District and the Board of the Upper Eagle Regional Water Authority for diligently protecting one of Eagle County's most important natural assets. Such settlement is in accordance with Eagle County water policy by recognizing that the water in our streams and rivers is essential for our Communities and for our economic health. MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held the l lh day of December, 2007. ATTEST: Clerk to the Board of County Commissioners COUNTY OF EAGLE, STATE OF COLORADO, by and Through Its BOARD OF COUNTY COMMISSIONERS By: Am M. Menconi Chairman Sara J. Fisher Commissioner Peter F. Runyon Commissioner Commissioner seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner Runyon Commissioner Fisher Commissioner Menconi This Resolution passed by Commissioners of the County of Eagle, State of Colorado. vote of the Board of County 4813-0832-0001.1 Detailed Water Rights Status: Settlement Agreement, Case No. 02CW125 and 07CW126 Eagle-Colorado Collection System Roberts Tunnel Collection System Eaale River Unit Piney River Unit Direct Flow Rights Abandoned Retained Direct Flow Rights Abandoned Retained Eagle River Pump Plant 2,000 cis 500 cis East Meadow Creek 35 cis 0 cis Total 2,000 cfs 500 cfs' Meadow Creek 30 cis 0 cis Freeman Creek 15 cfs 0 CIS Dickson Creek 25 cis 0 cis Moniqer Creek 15 cis 0 cis Piney River 0 cfs 170 CIS Colorado River Unit Middle Creek per 85CW625 35 cis 0 cfs Direct Flow Rights Abandoned Retained Total 155 cfs 170 cfs2 State Bridge Pump Plant 2400 cis 600 cis Total 2,400 cfs 600 cfs' Storage Rights Pinev Reservoir 40,000 Acre Feet 0 Acre Feet Total 40,000 Acre Feet 0 Acre Feet Eaale River Unit Eagle-Colorado Reservoir Direct Flow Rights Abandoned Retained Piney, Yoder, and Hesoiution Storage Rights Abandoned Retained creeks 144 cis 0 CIS Eagle-Colorado Reservoir 0 Acre Feet 350,000 Acre Feet Turkey Creek 75 cis 0 CIS Total 0 Acre Feet 350,000 Acre Feet' Wearyman Creek 90 cis 0 CIS Lime Creek 40 cis 0 cis Gore Creek 285 cis 0 cis Black Gore Creek 150 cfs 0 cfs Biy Horn Creek 75 cis 0 cis Pitkin Creek 90 cfs 0 CIS Booth Creek 80 cis 0 cis Straight Creek Project Spraddle Creek 5 cfs 0 cfs Red Sandstone Ck. 80 cis 0 cfs Homestake Ck. 50 cis 0 CIS Direct Flow Rights Abandoned Retained Tributaries to Homestake Ck. 138 cis 0 CIS Straiqht Creek 0 cis 115 cis East Fork Eagle R. 17 cis 0 cis Total 0 cfs 115 cfs Total 1,319 cfs3 0 cfs References: 1. Use is limited to on-site recreation, direct beneficial uses within the Colorado River basin, indirect beneficial uses by replacement, substitution or exchange by West Slope and East Slope water users, and endangered fish flow purposes. 2. Under the Settlement Agreement, Denver Water will transfer ownership of this water right to the Upper Eagle Regional Water Authority, the Eagle River Water and Sanitation District and the Colorado River Water Conservation District. The water right can only be used to fill a joint use Eagle-Colorado/Wolcott Reservoir for uses described in the settlement. 3. Total diversions from all sources are not to exceed 1,195 cfs. 998HRESOURCE Page 1 of 2 Summary, Water Rights Status: Settlement Agreement, Case No. 02CW125 and 07CW126 Proposed Direct Flow Facilities CFS Structure Unit System Abandon Retain State Bridge Pump Plant Colorado River Unit Eagle-Colorado Collection System 2,400 600 Eagle River Pump Plant Eagle River Unit Eagle-Colorado Collection System 2,000 500 Multiple Diversions Eagle River Unit Roberts Tunnel Collection System 1,195 0 Multiple Diversions Piney River Unit Roberts Tunnel Collection System 155 1 170 Multiple Diversions - Straight Creek Project 01 115 Tota 11 5750 1 1,385 Proposed Storage Facilities Acre Feet Structure Unit System Abandon Retain Eagle-Colorado Reservoir - Eagle-Colorado Collection System 0 350,000 Piney Reservoir Piney River Unit Roberts Tunnel Collection System 40,000 0 Total 40,000 1 350,000 Direct Flow Water Rights Abandoned Retained 13x5 GFS CFS 5"5" GFS Page 2 of 21 .19 c1 R E S O U R C E Project Facilities Abandoned ?4- per Settlement Agreement: o 35 Separate On-Stream Diversion Structures L- 11101\ ima 53 Miles of Interconnecting STATE Tunnels 1 BRIDGE 22 Miles of Conduit L Proposed Eagle-Colorado/Wolcott L Reservoir 111!(-N ? vJOLCOrr ? EAGLE. GYPSUM Eagle-Colorado Collection System, AVON Eagle-Colorado Reservoir ?"kh Water Rights kif ?r Storage Rights Abandoned Retained (Eagle-l olorado/Wolcott Reservoir 0 Acre I eet 350,000 Acre Feet 1Total 0 Acre Feet 350,000 Acre Feet f/ 1 f Eagle-Colorado Collection System, Eagle River Unit Water Rights Direct FlowRipa?hts Abandoned Retained Eagle River Pump Plant 2.000 cfs 500 cfs ]Total 2,000 cfs 500 cis Roberts Tul Pi Direct Flow Rights East Meadow Creek Meadow Creek Freeman Creek Dickson Creek Monger Creek Piney River Middle Creek per 85CW625 Total Storage Rights 100000, Piney Reservoir Total Piney Reservoir E V i VAIL Gore Creek lAbandonedl MINTURN 1' r t w FRISCO RED \te? CLIFF djo_N Summary Map: Settlement Agreement, Case No. 02CW125 and 07CW126 IJJ.Ii-I +"J"PESOURCE 7 0 1.25 2.5 5 7.5 10 ° IENGINEERING,INC 1 Homestake so So Miles c?. r ? -(97 q1 . 94 CQ 81 eism Reservoir ?aro7 s?s?m vo«. ferolws-nav -- / I / - L-7 Eagle-Colorado Collection System, Colorado River Unit Water Rights Direct Flow Rights Abandoned Retained f ]State Bridge Pump Plant 2400 cfs 600 cfs i )Total 2400 cfs 600 cfs r I Roberts Tunnel Collection System, Eagle River Unit Water Rights Direct Flow Rights Abandoned Retained Piney, Yoder, and Resolution Creeks '44 cis 0 CIS (Turkey Creek 75 cfs Wea man Creek 90 cfs 0 cfs 0 cfs Lime _reek 40 cfs 0 cfs Gore Creek 285 cis 0 cfs Black Gore Creek 150 cfs 0 cfs Big Horn Creek 75 cfs 0 cfs Pitkln Creek 90 cfs 0 cfs Booth Creek So cfs 0 cfs Spraddle Creek 5 cis 0 cfs Red Sandstone Ck. 80 cfs 0 cfs Homestake Ck. 50 cfs 0 cfs Tributaries to Homestake Ck. 138 cis 0 cfs East Fork Eagle R. 17 cfs 0 cfs Total 1319 cfs 0 cfs P:,rk Co. ' m •I! n version oir i ischarge liversion :ct Retained 115 cfs 115 cfs Existing _ rlcai Harold D. Roberts Tunnel 6? I >Zrg Water Glossary: Colorado Water Terms - A Selective List Community News Briefing: December 3, 2007 Denver Diligence Settlement Agreement Eagle River Water & Sanitation District / Upper Eagle Regional Water Authority Absolute water right: An absolute, or perfected water right, is a water right that is granted permanent status when water has been physically diverted or controlled and put to beneficial use. A water right is granted for a specific amount of water to be put to a beneficial use from a specific point of diversion or control, for a certain purpose and for some rights a specified period of use. Abandonment: Abandonment is the loss of all or part of a water right due to non-use or the failure to prove diligence on a conditional water right resulting in the loss of the right and its placeholder status relative to other water rights. Absolute water rights are only declared abandoned by the water court when the water right holder expresses an intent to abandon the right. Acre-foot: An acre-foot is the standard unit of measurement for standing or stored water. It is the amount of water required to cover one acre of land (43,560 square feet) one foot deep. An acre-foot is equal to 325,851 gallons. Depending on how much water is used for outside irrigation, an acre- foot can meet the needs of one to two single-family households for a year. Adjudication: A judicial process through which the existence of a water right is confirmed by court decree. With the court decree, the water right is given its priority among all other water rights, determining its place in line, or seniority, when there is not enough water to meet the needs of all users. Appropriation date: An appropriation date is the earliest date approved by the water court demonstrating that a water rights holder intends to put water to beneficial use. The appropriation date places a water right in chronological order among other water rights, with those older being senior to it and those younger characterized as junior. In times of shortage, the oldest rights have first priority, with remaining water allocated in chronological order until there is no more water available for use. The older a water right's appropriation date, the greater its value due to the likelihood it will have water in times of short supply. Basin: A basin is an area of land that collects water as either snowmelt or rainfall and drains into a common body of water, such as a stream or a river. (See link to Major River Basins of Colorado.) Beneficial use: Beneficial use is the legal basis for allowing all diversions of water from surface and groundwater supplies. Water that is removed from the state's rivers, streams and underground must serve a beneficial purpose to mankind, either economically, socially, recreationally, hygienically or other ways, or it is not granted a right. To allow water resources to benefit the greatest number of people, use of water must be reasonably efficient. A water right is a right to use the amount of water necessary to accomplish beneficial use without waste. CFS: CFS is an acronym for cubic feet per second. A cubic foot per second is one cubic foot of water passing by a single point for one second. CFS is the standard unit of measure for water that is in motion, such as water flowing in rivers and streams. A flow rate of one cfs would mean that 7.48 gallons passed by a point of reference in one second or 448.8 gallons of water in one minute. Over the course of 24 hours, a flow of one cfs would produce 646,317 gallons or almost the equivalent of two acre-feet per day. II Colorado River Water Conservation District (CRWCD): The Colorado River Water Conservation District (CRWCD), also known as the River District, is a governmental entity formed in 1937. It evolved from the Western Colorado Protective Association, which was a group dedicated to protecting the Colorado River from threats of out-of-basin diversions. The present day River District's mission is to protect and conserve the waters of the Colorado River within Colorado for beneficial use. It is a policy-making entity that can hold water rights, fund water projects, litigate, lobby for legislation and mediate disputes affecting the district. The River District represents all or part of 15 West Slope counties, including: Grand, Summit, Eagle, Pitkin, Routt, Garfield, Moffat, Rio Blanco, Gunnison, Mesa, Delta, ]Montrose, Ouray, Hinsdale and Saguache counties. Each county has one representative seated on the River District's Board of Directors appointed by the county's Board of Commissioners for three-year terms. The River District is principally funded by a tax assessment based on value of a land owner's property mill levy. Conditional right: A conditional water right is a legal right that holds a place in line for a planned water project this is not yet complete. Conditional rights are granted to provide the time to get a water diversion or storage project planned and constructed without losing the priority date of when the project was originally conceived. Evidence that plans to develop the project are still moving forward must be proven to a water court judge every six years in an act called "diligence" to keep the conditional water right on the books and preserve its place in line among other water appropriators. Conservancy district: A conservancy district is a taxing body created for the purpose of constructing, paying for and operating water projects. A conservancy district can cover a very large area of the state or a very small one, depending upon how many people agree to be included and the area benefitting from the project or projects. Conservation district: A conservation district is a policy-making body that is chartered by the General Assembly of Colorado for the purpose of protecting and developing the water resources of a portion of the state. Many conservancy districts can be located within. the boundaries of a conservation district. There are four water conservation districts in Colorado: The Colorado River Water Conservation District (CRWCD) covers northwest and west central Colorado, The Southwestern Water Conservation District (SWCD) covers the southwest corner of the state, the Rio Grande Water Conservation District (RGWCD) covers the San Luis Valley and the recently (2004) formed Republican River Water Conservation District that represents the Republican River Basin in eastern Colorado. Decree: An official document issued by the court defining the priority, amount, use, timing and location of a water right. Diligence: Diligence is the effort accomplished by a conditional water right holder to physically use water for a beneficial purpose, thereby perfecting that water right and making it absolute. Diligence must be proved to the water court every six years for the conditional right to remain on the books and hold its place in line. When diligence is not satisfactorily proved to the water court, it can be declared abandoned and its conditional decree date lost. Dillon Reservoir: Denver Water, the principal water provider for the Denver metro area, owns and operates Dillon Reservoir, which borders the Towns of Silverthorne and Dillon in Summit County. Dillon Reservoir stores inflows from the Blue River and smaller basin tributaries and transports the 21 water under the Continental Divide through the Roberts Tunnel to the southern end of Denver's water collection system. Diversion: The removal of water from its natural course or location by means of ditches, headgates, reservoirs, pipeline, conduit, well, pump or other structure or device. East Slope: The East Slope of Colorado is the portion of the state that lies east of the Continental Divide. The East Slope includes the North Platte, South Platte, Arkansas and Rio Grande River basins. Most of Colorado's population lives on the East Slope, though most of the precipitation falls on the West Slope or the portion of Colorado west of the Continental Divide. "First in time, first in right:" First in time, first in right is a term synonymous with the prior appropriation system. This phrase denotes how those with the oldest and therefore most senior appropriations of water have priority over other younger, or more junior, water rights during times of insufficient water supply. Front Range: Front Range refers to the band of large municipalities that sit along the eastern foothills of the Rocky Mountains in Colorado. This region is marked by intense development and harbors a majority of the state's population. The Front Range stretches from the northern communities of Fort Morgan, Fort Collins and Greeley, near the Colorado-Wyoming border, through the Denver metropolitan area and south to Colorado Springs and Pueblo. The term 1-25 corridor" is synonymous with the Front Range, since these communities are all in close proximity to this traffic artery. The Front Range generally lacks the surface water resources necessary to support its population, agriculture and industries and has become increasingly reliant upon transmountain diversions to augment its natural water supplies. Green Mountain Reservoir: Green Mountain Reservoir (GMR) was the first feature of the Colorado-Big Thompson (C-BT) project to be built. The West Slope fought against the original C- BT project because its depletions of Colorado River water would impair the West Slope's water supply and would severely hamper its ability to grow. From negotiations between the two sides, the idea of compensatory storage was born, which offers protection to the basin of origin through mitigation. In exchange for allowing the project to proceed, the C-BT project included Green Mountain Reservoir to keep West Slope water users from feeling the impacts of the upstream transmountain diversions and to allow for future West Slope growth. Initially the reservoir was apportioned into two pools of water. The most senior of these two pools, or the first to fill, was the 52,000 acre-foot "replacement pool" from which water would be released to replace Colorado River water transmountain diverted by the C-BT "out of priority" . The remaining 100,000 acre-feet (AF) were for present and future uses on the West Slope. This is known as the Compensatory Storage Pool or Power Pool, since hydroelectric energy is generated as the water is being released. After the 1977 drought, reservoir operations were modified to divide the reservoir into four pools of water: The 52,000 AF C-BT replacement pool, the Silt Project Pool containing 5,000 AF to mitigate the effects of constructing the water project near the West Slope town of Silt, a 66,000 AF Historic Users Pool (HUP) and a 20,000 AF Contract Pool. Western Colorado water users that developed reliance upon Green Mountain water prior to 1977 have their needs met through the HUP pool. The Contract Pool meets the needs of industrial water users and post-1977 domestic and irrigation uses, pursuant to individual water contracts through the Bureau of Reclamation. 31 Northern Colorado Water Conservancy District (NCWCD): The Northern Colorado Water Conservancy District, often referred to as "Northern", is the legal contracting entity for and recipient of project water from the Colorado-Big Thompson Project (C-BT). Perfected right: A water right is considered perfected when water is actually put to beneficial use. Priority date: A priority date is the date assigned to a water right by the water court, reflecting the first time water was put to beneficial use or when a conditional right was secured. The older the priority date, the more senior a water right is and the more likely it will be entitled to water during dry periods. The more recent the priority date, the more junior a water right, and the less likely it will receive water in times of scarcity. Priority system: The priority system was established when Colorado was still a territory to solve disputes over ownership and use of water. The system prioritizes use of water based upon who used water first. Those who put water to beneficial use first retain the senior right to continue using that water before newer users. When there is not enough water to satisfy all of the water users, the junior, or most recent user, must curtail or forego use until senior rights are fulfilled. Prior appropriation: Prior appropriation is the basis for Colorado's water laws and its priority system of allocating water. The prior appropriator, or the first person to put water to a beneficial use, has the superior right to use water in instances when there is not enough water to meet the needs of all water users. Water users who put water to beneficial use after others must subordinate their use to those who previously established a water use. Reservoir: A reservoir is a body of stored water impounded by a dam. Reservoirs are constructed to provide drought protection, flood control, recreation and water for present and future use. River basin: A river basin is the land area that naturally drains into a particular water course. The eight largest river basins in Colorado are the Colorado, South Platte, North Platte, Arkansas, Rio Grande, San Juan, White and Yampa River basins. Subordination: Subordination is the voluntary relinquishment of a water right's priority to selected or all junior water rights. A large water project or transmountain diversion may subordinate its water rights to protect in-basin water rights or to allow for an increment of new water development that otherwise would be precluded by a strict adherence to the priority system. Transbasin/ transmountain diversion: A transbasin diversion is the removal of water from one river basin to another river basin. A transmountain diversion is the removal and transport of water across the Continental Divide. These diversions of water are 100% consumptive since no water from the diversion will return to the basin of origin's waters as return flow. Colorado water law (Coffin v. Left Hand Ditch) provides for transmountain diversions by allowing the diversion of water from where it naturally flows to where it is needed within the state, regardless of distance. Water Court: Water Court is the mechanism by which water rights are adjudicated and therefore officially recognized by the State of Colorado. Water judges are district judges appointed by the Colorado Supreme Court and have jurisdiction in the determination of water rights, the use and administration of water, and all other water matters within the jurisdiction of the water divisions. 4g Water right: A water right is a private property right in the State of Colorado that establishes in what priority a water user may use water for a beneficial purpose. The priority in which someone can divert water to put it to a beneficial use is granted by the water courts in the State of Colorado. A water right allows diversion of a certain amount of water, in a specified order among other water users, from a certain point along a body of water and for a specified purpose. The older, or more senior, the water right, the fewer other water users whose needs must be satisfied before the user is allowed to divert water. The younger, or more junior, the water right, the greater number of senior water rights that must be satisfied before a junior right can divert water. As private property, water rights can be bought, sold, inherited, traded, exchanged, donated or otherwise disposed of as the owner sees fit. The value of the right is based primarily upon its seniority, which dictates how likely the right will produce water when supply is limited. Watershed: Watersheds are areas of land that catch precipitation and drain into a body of water. Watershed can refer to either small collection areas that feed into streams or small bodies of water or they can refer to large areas such as river basins. West Slope: "West Slope" is an informal geographic term describing the portion of Colorado west of the Continental Divide. The West Slope is in the Colorado River Basin. The West Slope of Colorado receives roughly 90% of the entire state's precipitation, yet its population is a fraction of that found in the metropolitan areas along Colorado's Front Range, or East Slope. Source: Colorado River Water Conservation District: http://www.crwcd.org/ 5