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HomeMy WebLinkAbout2008-03-18 Support Documentation Town Council Evening SessionVAIL TOWN COUNCIL EVENING SESSION AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 6:00 P.M., TUESDAY, MARCH 18, 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. ITEM/TOPIC: Citizen Input. (10 min.) 2. ITEM/TOPIC: Recognition of former Council Members Greg Moffet and Kent Logan. (15 min.) 3. ITEM/TOPIC: Battle Mountain High School Hockey and ProStart Teams Recognition. (10 min.) 4. ITEM/TOPIC: Town Manager's Report. (10 min.) • 1-70 Overlay Project Update. 5. Mark Masinter ITEM/TOPIC: LionsHead Parking Structure and Conference Stan Zemler Center Update. (45 min.) ACTION REQUESTED OF COUNCIL: Listen to developer's update on the LionsHead Parking Structure project plan including proposed changes in the conference center space and status of the deed restriction held by Vail Resorts. BACKGROUND RATIONALE: The LionsHead Parking Structure Development Improvement Agreement between the Town of Vail and Open/Hillwood calls for the following actions: o By February 13, 2008, revised Conference Center proposal to be submitted. o By March 15, 2008, project plan including schematic, architectural, internal and external layouts of the project to be submitted for approval by the Council. o Project plan submittal deadline above may be extended by either party to no later than September 15, 2008. Mark Masinter of Open/Hillwood will present revisions to the conference center and an update on the project plan, including the status of the deed restriction held by Vail Resorts. 't STAFF RECOMMENDATION: If Council is satisfied with the direction of the conference center proposal and the project plan, direct Mr. Masinter to return at a specified date with a formalized project plan for Council approval. 6. Mark Masinter ITEM/TOPIC: Timber Ridge Redevelopment Proposal. (60 min.) Jeff Courtwright Stan Zemler On January 1, 2008, the Vail Town Council reviewed four proposals for redevelopment of Timber Ridge presented by Lincoln Property Southwest. The Vail Town Council directed staff and Lincoln Property to work on and draft a sales and development agreement reflecting the terms outlined in Option 1: Assumptions 316 units / 1,264 beds $13,530,000 Land Allocation (6.2 acres) $2,280 rent CONSTRUCTION COST: $98,568,000 On March 4, 2008, the Town Council was updated regarding the assumptions in the proposal by the Open/Lincoln team. The assumptions were updated to reflect additional information, which included an increased cost of construction (approximately $107,000,000) that results in a rental rate increase. Lincoln Property will be providing a revised proposal to the Town Council on March 18, 2008, and will further clarify its position on several key issues. ACTION REQUESTED OF COUNCIL: Listen to the revised Open/Lincoln proposal and provide direction to staff on how to proceed. If the Town Council chooses to continue negotiating with the Open/Lincoln team, staff believes clear direction surrounding the following items is necessary: 1. Ownership Structure/Upside Participation 2. Earnest Money 3. Feasibility Period 4. Assignability of any Deed Restriction 5. Construction Guarantee(s) 6. Applicability of Use Tax 7. Public Improvements 8. Rent Control Index 9. Land Lease vs. Sale of Property 10. Construction Phasing 11. Issues Regarding Remaining Town Parcel (access, financing, use) 12. 25% Non Deed Restricted (sale, lease) BACKGROUND RATIONALE: The Town of Vail acquired Timber Ridge in 2003 and permanently deed restricted the property with the requirement to maintain 600 affordable rental beds. It is the intention of the Town to enter into an agreement with Lincoln Property Company Southwest to purchase and redevelop the subject property. STAFF RECOMMENDATION: Provide staff with direction to work on and draft a sales and development agreement or to terminate the negotiations with the Open/Lincoln team and bring back a recommendation on how to further proceed with a disposition of the Timber Ridge Property. 7. Tom Kassmel ITEM/TOPIC: Eagle River Water and Sanitation District/ Town of Vail Joint Project IGA. (10 min.) ACTION REQUESTED OF COUNCIL: Direct Town Staff to enter into an Inter Governmental Agreement between the ERWSD and the Town of Vail once construction bids have been reviewed and a contractor has been selected by ERWSD. BACKGROUND RATIONALE: ERWSD is replacing the water and sewer lines in Beaver Dam Road and Beaver Dam Circle this year. The Town of Vail needs to complete budgeted drainage and road improvements along Beaver Dam Road and Beaver Dam Circle. It is in the best interest of both the town and ERWSD to complete the projects simultaneously using one contractor. The town and ERWSD have been working on the construction drawings for these projects and plan to open public bids on March 26th. It is in both agencies' best interest to have ERWSD hold the contract with the selected contractor and complete all of the improvements and have the Town of Vail reimburse ERWSD for the town's drainage and roadway improvements. This project has been budgeted within the Capital Street Maintenance Budget. STAFF RECOMMENDATION: Direct staff to draft and review an IGA between ERWSD and the Town, in a form approved by the Town Attorney, for the reimbursement of construction costs for Town improvements completed by ERWSD's contractor, and return to council with a copy of the IGA and total reimbursement costs once the contractor has been selected and actual bid costs are known. 8. Scot Hunn ITEM/TOPIC: An appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Planning and Environmental Commission's and the Town of Vail Design Review Board's respective approvals of a major exterior alteration application, based upon Section 12-713-7, Exterior Alterations or Modifications, and Chapter 11, Design Review, Vail Town Code, to allow for a remodel and addition to the existing Rucksack Condominiums Building and Scott Building (aka the "Bridge Street Building"), located at 288 Bridge Street, part of Lot C and Lot D, Vail Village Filing 1, and setting forth details in regard thereto. (5 min.) ACTION REQUESTED OF COUNCIL: According to written requests from the Appellant and the attorney representing the Bridge Street Building, LLC., (developer), Staff requests the Council table the public hearing to consider the above referenced appeal to their regular meeting of April 1, 2008, in order to allow the two parties to work towards a mutually agreed upon resolution of design related issues being appealed. BACKGROUND RATIONALE: On January 14, 2008, the Planning and Environmental Commission approved, with conditions, an application (PEC07-0076) for a major exterior alteration, pursuant to Section 12-713-7, Vail Town Code. On January 16, 2008, the Design Review Board approved, with conditions, an application (DRB07-0709) for a major exterior alteration, pursuant to Section 12-11, Design Review, Vail Town Code. On February 4, 2008, the Town of Vail Community Development Department received an appeal with regard to the Commission's approval. On February 5, 2008, the Town of Vail Community Development Department received an appeal with regard to the Design Review Board's approval. On March 4, 2008, the Council voted unanimously to table the public hearing to consider the aforementioned appeal to their regularly scheduled meeting of March 18, 2008. The applicant has submitted a subsequent request to table the hearing once more, to the Council's regular meeting date of April 1, 2008. 9. Scot Hunn ITEMITOPIC: First reading of Ordinance No. 5, Series of 2008, an ordinance approving a major amendment to Special Development District No. 4, Cascade Village, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the development of a mixed use development, located at 1276 Westhaven Drive (Cornerstone site). (5 min.) ACTION REQUESTED OF COUNCIL: According to written requests from the applicant, LO Westhaven, Inc., Staff requests the Council table the public hearing to consider first reading of Ordinance No. 5, Series of 2008, to their regular meeting of April 1, 2008. BACKGROUND RATIONALE: On January 28, 2008, the Town of Vail Planning and Environmental Commission voted unanimously to forward a recommendation for approval, with conditions, of an application for a major amendment to Special Development District No. 4, Vail Cascade, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the development of the Cornerstone Site. (PEC070055) On February 19, 2008, the Vail Town Council held a public hearing to consider Ordinance No. 5, Series of 2008, an ordinance approving a major amendment to Special Development District No. 4, Cascade Village, on first reading. At that meeting, the Council voted unanimously to table the public hearing to their regularly scheduled meeting of March 18, 2008. The applicant has submitted a subsequent request to table the hearing once more, to the Council's regular meeting date of April 1, 2008. 10. Warren Campbell ITEM/TOPIC: Second reading of Ordinance No. 4, Series of 2008, an ordinance amending Section 12-14-20, Commercial Core Construction, Vail Town Code, to allow for the extension of the commercial core temporary construction signage for businesses and setting forth details in regard thereto. (5 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 4, Series of 2008, on second reading. BACKGROUND RATIONALE: On May 3, 2005, the Town Council adopted Section 12-14-20, Commercial Core Construction, Vail Town Code, through Ordinance No. 10, Series of 2005. These regulations facilitated the installation of temporary construction mitigation signs and fencing within the Town's commercial areas to lessen the impact of redevelopment construction on the Town's businesses, residents, and guests. These regulations are scheduled to expire on April 1, 2008. On February 25, 2008, the Planning and Environmental Commission voted 7-0-0 to forward a recommendation of approval for text amendments to extend the approval of the Commercial Core Construction regulations until April 1, 2010. On March 4, 2008, the Town Council approved Ordinance No. 4, Series of 2008, on first reading by a vote of 6-0-0. STAFF RECOMMENDATION: Staff recommends that Town Council approves Ordinance No. 4, Series of 2008, on second reading. 11. ITEM/TOPIC: Adjournment. (8:55 p.m.) NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT TBD, TUESDAY, APRIL 1, 2008 IN THE VAIL TOWN COUNCIL CHAMBERS. MEMORANDUM TO: Town Council FROM: Community Development Department DATE: March 18, 2008 SUBJECT: A work session to discuss proposed amendments to Chapters 12-13, Employee Housing, 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, Vail Town Code, to establish standards and criteria related to mitigating employee housing requirements, and setting forth details in regard thereto. Applicant: Town of Vail, represented by Nina Timm, Housing Coordinator Planner: Bill Gibson DESCRIPTION OF THE REQUEST A work session to discuss proposed amendments to Chapters 12-13, Employee Housing, 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, Vail Town Code, to establish standards and criteria related to mitigating employee housing requirements, and setting forth details in regard thereto. II. BACKGROUND On March 10, 2008, the Planning and Environmental Commission voted 4-3-0 (Gunion, Proper, and Viele opposed) to forward a recommendation of approval, with modifications, for text amendments to the Commercial Linkage and Inclusionary Zoning employee housing mitigation requirements. The Planning and Environmental Commission recommended approval of the proposed text amendments with the following modifications: • Delete any "weighting" of the five available mitigation methods. • Except when on-site units are required, clarify that developers shall have the discretion to select the mitigation method, or methods, that are most advantageous to their circumstances when presenting an Employee Housing Plan to the Town for review. Numerous clarifications and "clean-ups" to the Commercial Linkage, Inclusionary Zoning, and several other related regulations have also been incorporated into the proposed text amendments. These clarification and "clean-ups" do not create any substantive policy changes. Please refer to Section III of the Community Development memorandum to the Planning and Environmental Commission, dated March 10, 2008, for additional background information. (Vail Town Council Attachment: D) 1 III. STAFF RECOMMENDATION Schedule a public hearing for the first reading of Ordinance No. 1, Series of 2008, on April 1, 2008. IV. ATTACHMENTS Attachment A: Ordinance No. 1, Series of 2008 Attachment B: March 7, 2008, letter from Vail Valley Medical Center Attachment C: March 10, 2008, letter from Mauriello Planning Group to the Planning and Environmental Commission Attachment D: March 10, 2008, Staff memorandum to the Planning and Environmental Commission Attachment E: Draft Meeting Minutes for the March 10, 2008, Planning and Environmental Commission (excerpt) 2 .V Vail Town Council Attachment: A ORDINANCE NO. 1 SERIES 2008 AN ORDINANCE AMENDING SECTION 12-2-2, DEFINITIONS OF WORDS AND TERMS; ARTICLES 12-6A, HILLSIDE RESIDENTIAL DISTRICT; 12-613, SINGLE-FAMILY RESIDENTIAL DISTRICT; 12-6C, TWO-FAMILY RESIDENTIAL DISTRICT; 12-61), TWO-FAMILY PRIMARY/SECONDARY RESIDENTIAL DISTRICT; 12-6E, RESIDENTIAL CLUSTER DISTRICT; 12-6F, LOW DENSITY MULTIPLE-FAMILY DISTRICT; 12-6G, MEDIUM DENSITY MULTIPLE-FAMILY DISTRICT; 12-6H, HIGH DENSITY MULTIPLE-FAMILY DISTRICT; 12-61, HOUSING DISTRICT; 12-7A, PUBLIC ACCOMMODATION DISTRICT; 12-713, COMMERCIAL CORE 1 DISTRICT; 12-7C, COMMERCIAL CORE 2 DISTRICT; 12-713, COMMERCIAL CORE 3 DISTRICT; 12-7E, COMMERCIAL SERVICE CENTER; 12-7F, ARTERIAL BUSINESS DISTRICT; 12-7H, LIONSHEAD MIXED USE 1 DISTRICT; LIONSHEAD MIXED USE 2 DISTRICT; 12-7J, PUBLIC ACCOMMODATION 2 DISTRICT; 12-8A, AGRICULTURAL AND OPEN SPACE DISTRICT; 12-81), SKI BASE/RECREATION DISTRICT; 12-8E, SKI BASE/RECREATION 2 DISTRICT; 12-96, PARKING DISTRICT; 12-9C, GENERAL USE;, CHAPTER 12-13, EMPLOYEE HOUSING, CHAPTER 12-23, COMMERCIAL LINKAGE, AND CHAPTER 12-24, INCLUSIONARY ZONING, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on March 10, 2008, the Planning and Environmental Commission of the Town of Vail held a public hearing and reviewed and forwarded a recommendation of approval for 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; and, WHEREAS, the Town Council finds and determines the provisions of Chapter 12-23, Commercial Linkage and Chapter 12-24, Inclusionary Zoning, Vail Town Code, must be amended to clarify the basis on which Employee Housing Plans shall be reviewed; and, WHEREAS, the Town Council finds and determines that the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, based upon Section VI of the Staff memorandum to the Planning and Environmental Commission dated March 10, 2008, and the evidence and testimony presented; and, WHEREAS, the Town Council finds and determines that the amendments further the general and specific purposes of the Zoning Regulations, based upon Section VI of the Staff memorandum to the Planning and Environmental Commission dated March 10, 2008, and the evidence and testimony presented; and, WHEREAS, the Town Council finds and determines that the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural Ordinance No. 1, Series of 2008, first reading environment and its established character as a resort and residential community of the highest quality, based upon Section VI of the Staff memorandum dated March 10, 2008, WHEREAS, the Town Council finds and determines that the public health, safety, and welfare will be served by these adopting regulations, based upon Section VI of the Staff memorandum to the Planning and Environmental Commission dated March 10, 2008, and the evidence and testimony presented. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Chapter 12-2, Definitions,' of the Vail Town Code is hereby amended as follows (text to be deleted is in s#ilethr-eugh, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-2-2: Definitions of Words and Terms FLOOR AREA, NET (Used Qn4, For- GaiGulat4ng-PaFking : The total floor area within the enclosing walls of a structure not including the following: A. Areas specifically designed and used for mechanical equipment to operate the building. B. Stairways. C. Elevators. D. Common hallways. E. Common lobbies. F. Common restrooms. G. Areas designed and used for parking. H. Areas designed and used as storage which do not have direct access to an individual office or retail store, not to exceed five percent (59/o) of the total proposed net floor area for office and not to exceed eight percent (89/o) of the total proposed net floor area for retail. "Common areas" are spaces for which all tenants in the building contribute toward the upkeep and maintenance thereof and are not used for employee working areas. Section 2. Article 12-6A, Hillside Residential District, of the Vail Town Code is hereby amended as follows (text to be deleted is in st;*ethrrough, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-6A-2: PERMITTED USES: The following uses shall be permitted in the FIR district: Single-family residential dwellings. Ordinance No. 1, Series of 2008, first reading Type ll/ employee housing unks Employee Housing Units, as further regulated by chapter 13 of this title. Tyne V employee housing unit one nnr t Q£ Section 3. Article 12-613, Single Family Residential District, of the Vail Town Code is hereby amended as follows (text to be deleted is in st4kethrough, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-6B-2: PERMITTED USES: The following uses shall be permitted in the SFR district: Single-family residential dwellings. Type -ll en4pleyee housing up Employee Housing Units, as further regulated by chapter 13 of this title. Tyne W employee housing „nits ss Section 4. Article 12-6C, Two-Family Residential District, of the Vail Town Code is hereby amended as follows (text to be deleted is str4kethr-ough, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-6C-2: PERMITTED USES: The following uses shall be permitted in the R district: Single-family residential dwellings. Two-family residential dwellings. Type-I Employee Housing Units, as further regulated by chapter 13 of this title. Type !I eR4&yee housing up , as fuu Mer reguulated by nhnnter 4? of this title. Tine ll/ empio,iee houusing units. 3f fw4her regulated by nhapter 43 of this title. Section 5. Article 12-6D, Two-Family Primary/Secondary Residential District, of the Vail Town Code is hereby amended as follows (text to be deleted is in sk*ethr-o ugh text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-6D-2. PERMITTED USES: The following uses shall be permitted. Single-family residential dwellings. Two-family residential dwellings. Type engpleyee housing un Employee Housing Units, as further regulated by chapter 13 of this title. Tyne 4 employee housing units, 2c fi4gher- Fegulated by ahapter- 43 of this We. #£, as fuurther renu,lnterl by ohopte - 44 of this title Section 6. Article 12-6E, Residential Cluster District, of the Vail Town Code is hereby amended as follows (text to be deleted is in sft*eth -ouugh text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-6E-2: PERMITTED USES: The following uses shall be permitted in the RC district. Multiple-family residential dwellings, including attached or row dwellings and condominium dwellings with no more than four (4) units in any new building. Ordinance No. 1, Series of 2008, first reading P" Single-family residential dwellings. Two-family residential dwellings. 7?epe 1 Employee Housing Units, as further regulated by chapter 13 of this title. 12-6E-3: CONDITIONAL USES: The following conditional uses shall be permitted in the RC district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Bed and breakfasts as further regulated by section 12-14-18 of this title. Business offices, as further regulated by subsection 12-16-7A13 of this title. Dog kennels. Funiculars and other similar conveyances. Home child daycare facilities as further regulated by section 12-14-12 of this title. Private clubs. Professional office, as further regulated by subsection 12-16-7A 13 of this title. Public buildings, grounds and facilities. Public or private schools. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. Employee Housing Units, as further regulated by Chapter 13 of this Title Section 7. Article 12-6F, Low Density Multiple-Family District, of the Vail Town Code is hereby amended as follows (text to be deleted.is in , text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-6F-2: PERMITTED USES: The following uses shall be permitted in the LDMF district: Multiple-family residential dwellings, including attached or row dwellings and condominium dwellings. Single-family residential dwellings. Two-family residential dwellings. Employee Housing Units, as further regulated by chapter 13 of this title 12-6F-3: CONDITIONAL USES: The following conditional uses shall be permitted in the LDMF district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Bed and breakfasts as further regulated by section 12-14-18 of this title. Dog kennels. Funiculars and other similar conveyances. Home child daycare facilities as further regulated by section 12-14-12 of this title. Private clubs. Public and private schools. Public buildings, grounds and facilities. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. 4 Ordinance No. 1, Series of 2008, first reading ?'' en4p Wea hou my units ; &A I11 c3 Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 8. Article 12-6G, Medium Density Multiple-Family District, of the Vail Town Code is hereby amended as follows (text to be deleted is in st4kethreugh, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-6G-2: PERMITTED USES: The following uses shall be permitted in the LDMF district: Multiple-family residential dwellings, including attached or row dwellings and condominium dwellings. Single-family residential dwellings. Two-family residential dwellings. Type W empieyee housing unit Employee Housing Units, as further regulated by chapter 13 of this title. 12-6G-3: CONDITIONAL USES: The following conditional uses shall be permitted in the LDMF district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Bed and breakfasts as further regulated by section 12-14-18 of this title. Dog kennels. Funiculars and other similar conveyances. Home child daycare facilities as further regulated by section 12-14-12 of this title. Private clubs. Public and private schools. Public buildings, grounds and facilities. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 9. Article 12-6H, High Density Multiple-Family District, of the Vail Town Code is hereby amended as follows (text to be deleted is in strikethr-eugh, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-6H-2: PERMITTED USES: The following uses shall be permitted in the HDMF district: Lodges, including accessory eating, drinking, recreational or retail establishments, located within the principal use and not occupying more than ten percent (109/6) of the total gross residential floor area (GRFA) of the main structure or structures on the site; additional accessory dining areas may be located on an outdoor deck, porch, or terrace. Multiple-family residential dwellings, including attached or row dwellings and condominium dwellings. Type Employee Housing Units, as further regulated by chapter 13 of this title. 12-6H-3: CONDITIONAL USES: Ordinance No. 1, Series of 2008, first reading The following conditional uses shall be permitted in the HDMF district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Bed and breakfasts as further regulated by section 12-14-18 of this title. Dog kennels. Funiculars and other similar conveyances. Home child daycare facilities as further regulated by section 12-14-12 of this title. Private clubs and civic, cultural and fraternal organizations. Private parking structures. Private unstructured parking. Public and private schools. Public buildings, grounds and facilities. Public park and recreation facilities. Public parking structures. Public transportation terminals. Public unstructured parking. Public utility and public service uses. Religious institutions. Ski lifts and tows. Timeshare units. Tyne 111 employee housing upkts (94U) a? Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 10. Article 12-61, Housing District, of the Vail Town Code is hereby amended as follows (text to be deleted is in stF&ethreugh text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-61-2: PERMITTED USES: The following uses shall be permitted in the H district., Bicycle and pedestrian paths. J as fwFther desGFibed iR GhapteY 43 of this tWe. Employee Housing Units, as further regulated by Chapter 13 of this Title. Passive outdoor recreation areas, and open space. 12-61-3: CONDITIONAL USES: The following conditional uses shall be permitted in the H district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Commercial uses which are secondary and incidental (as determined by the planning and environmental commission) to the use of employee housing and specifically serving the needs of the residents of the development, and developed in conjunction with employee housing, in which case the following uses may be allowed subject to a conditional use permit: Banks and financial institutions. Business offices and professional offices as further regulated by section 12-16-7 of this title: Child daycare facilities. Eating and drinking establishments. Funiculars and other similar conveyances. Ordinance No. 1, Series of 2008, first reading Health clubs. Personal services, including, but not limited to, laundromats, beauty and barber shops, tailor shops, and similar services. Retail stores and establishments. Dwelling units (not employee housing units) subject to the following criteria to be evaluated by the planning and environmental commission: A. Dwelling units are created solely for the purpose of subsidizing employee housing on the property, and B. Dwelling units are not the primary use of the property. The GRFA for dwelling units shall not exceed thirty percent (30%) of the total GRFA constructed on the property, and C. Dwelling units are only created in conjunction with employee housing, and D. Dwelling units are compatible with the proposed uses and buildings on the site and are compatible with buildings and uses on adjacent properties. Outdoor patios. Public and private schools. Public buildings, grounds and facilities. Public parks and recreational facilities. Public utilities installations including transmission lines and appurtenant equipment. TypeW engpleyee housing up Employee Housing Units, as further regulated by chapter 13 of this title. Section 11. Article 12-7A, Public Accommodation District, of the Vail Town Code is hereby amended as follows (text to be deleted is in stF&eth -eugh text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-7A-2: PERMITTED USES: The following uses shall be permitted in the PA district: Lodges, including accessory eating, drinking, or retail establishments located within the principal use and not occupying more than ten percent (1091o) of the total gross residential floor area of the main structure or structures on the site; additional accessory dining areas may be located on an outdoor deck, porch, or terrace. Type W engpleyee housing unit Employee Housing Units, as further regulated by chapter 13 of this title. 12-7A-3: CONDITIONAL USES: The following conditional uses shall be permitted in the PA district, subject to issuance of a conditional use permit in accordance with the.provisions of chapter 16 of this title: Bed and breakfasts, as further regulated by section 12-14-18 of this title. Fractional fee club units as further regulated by subsection 12-16-7A8 of this title. Healthcare facilities. Lodges, including accessory eating, drinking, or retail establishments located within the principal use and occupying between ten percent (10%) and-fifteen percent (15%) of the total gross residential floor area of the main structure or structures on the site. Major arcades. Private clubs and civic, cultural and fraternal organizations. Private parking structures. Private unstructured parking. Professional and business offices. Ordinance No. 1, Series of 2008, first reading Public and private schools. Public buildings, grounds and facilities. Public parking structures. Public parks and recreational facilities. Public transportation terminals. Public unstructured parking. Public utility and public service uses. Religious institutions. Ski lifts and tows. Theaters and convention facilities. Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 12. Article 12-713, Commercial Core 1 District, of the Vail Town Code is hereby amended as follows (text to be deleted is in sttilet , text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-7B-2: PERMITTED AND CONDITIONAL USES; BASEMENT OR GARDEN LEVEL: B. Permitted Uses: The following uses shall be permitted in basement or garden levels within a structure: 8. employee housing units, as further regulated by chapter 13 of this title. 12-7B-3: PERMITTED AND CONDITIONAL USES; FIRST FLOOR OR STREET LEVEL: B. Permitted Uses: The following uses shall be permitted on the first floor or street level within a structure: 4. Type 1 employee housing units Employee Housing Units, as further regulated by chapter 13 of this title. 12-7B-4: PERMITTED AND CONDITIONAL USES; SECOND FLOOR: A. Permitted Uses; Exception: The following uses shall be permitted on the second floor above grade within a structure; provided, however, that a conditional use permit will be required in accordance with chapter 16 of this title for any use which eliminates any existing dwelling or accommodation unit or any portion thereof. 8. Type 1 employee housing up Employee Housing Units, as further regulated by chapter 13 of this title. B. Conditional Uses: The following uses shall be permitted on second floors above grade, subject to the issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Dog kennels. Electronics sales and repair shops. Household appliance stores. Liquor stores. Luggage stores. Meeting rooms. Outdoor patios. Ordinance No. 1, Series of 2008, first reading Theaters. T'i emnlnyee hGU i g UP4 /9111 ) MS Employee Housing Units, as further/regulated by Chapter 13 of this Title. 12-7B-5: PERMITTED AND CONDITIONAL USES; ABOVE SECOND FLOOR: A. Permitted Uses: The following uses shall be permitted on any floor above the second floor above grade. Lodges. Multiple-family residential dwellings. Type 1 employee housiRg units Employee Housing Units, as further regulated by chapter 13 of this title. B. Conditional Uses: The following uses shall be permitted on any floor above the second floor above grade, subject to the issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title. Any permitted or conditional use which eliminates any existing dwelling or accommodation unit, or any portion thereof, shall require a conditional use permit. Such uses may include: 8. Type 11 employee heus ng up#& /cul 1) as pr-evided in Ghapter- 43 ef this We. Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 13. Article 12-7D, Commercial Core 3 District, of the Vail Town Code is hereby amended as follows (text to be deleted is in , text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-7D-1: PERMITTED USES: The following uses shall be permitted in the commercial core 3 district: Banks and financial institutions. Eating and drinking establishments, including the following: Cocktail lounges and bars. Coffee shops. Fountain and sandwich shops. Restaurants. Health clubs. Personal services and repair shops, including the following: Beauty and barber shops. Business and office services. Cleaning and laundry pick up agencies without bulk cleaning or dyeing. Laundromats. Shoe repair. Small appliance repair shops, excluding furniture repair. Tailors and dressmakers. Travel and ticket agencies. Professional offices, business offices, and studios. Retail stores and establishments without limit as to floor area including the following: Apparel stores. Art supply stores and galleries. Auto parts stores. Bakeries and confectioneries, preparation of products for sale on the premises. Ordinance No. 1, Series of 2008, first reading Bookstores. Building materials stores without outdoor storage. Camera stores and photographic studios. Candy stores. Chinaware and glassware stores. Delicatessens and specialty food stores. Department and general merchandise stores. Drugstores. Electronics sales and repair shops. Florists. Food stores. Furniture stores. Gift shops. Hardware stores. Health food stores. Hobby stores. Household appliance stores. Jewelry stores. Leather goods stores. Liquor stores. Music and record stores. Newsstands and tobacco stores. Photographic studios. Radio and television broadcasting studios. Sporting goods stores. Stationery stores. Supermarkets. Toy stores. . Variety stores. Yardage and dry goods stores. Type 1? empkWe housing on Employee Housing Units, as further regulated by chapter 13 of this title. Additional offices, business, or services determined to be similar to permitted uses in accordance with the provisions of this section. 12-7D-2: CONDITIONAL USES: The following conditional uses shall be permitted in the commercial core 3 district, subject to issuance of a conditional use permit in accord with the provisions of chapter 16 of this title: Any use permitted by section 12-7D-1 of this article which is not conducted entirely within a building. Bed and breakfasts as further regulated by section 12-14-18 of this title. Brew pubs. Child daycare center. Commercial laundry and cleaning services, bulk plant. Commercial storage. Dog kennels. Drive-up facilities. Major arcades. 10 Ordinance No. 1, Series of 2008, first reading Massage parlors. Outside car wash. Pet shops. Public buildings, grounds, and facilities. Public park and recreation facilities. Public utility and public service uses. Radio and television signal relay transmission facilities. Theaters, meeting rooms, and convention facilities. Transportation businesses. ') ss title. Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 14. Article 12-7E, Commercial Service Center District, of the Vail Town Code is hereby amended as follows (text to be deleted is in , text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-7E-3: PERMITTED USES. The following uses shall be permitted in the CSC district: Banks and financial institutions. Eating and drinking establishments, including the following: Bakeries and delicatessens with food service. Cocktail lounges and bars. Coffee shops. Fountains and sandwich shops. Restaurants. Personal services and repair shops, including the following: Beauty and barber shops. Business and office services. Cleaning and laundry pick up agencies without bulk cleaning or dyeing. Laundromats. Small appliance repair shops, excluding furniture repair. Tailors and dressmakers. Travel and ticket agencies. Professional offices, business offices, and studios. Retail stores and establishments without limit as to floor area including the following: Apparel stores. Art supply stores and galleries. Bakeries and confectioneries, including preparation of products for sale on the premises. Bookstores. Building materials stores without outdoor storage. Camera stores and photographic studios. Candy stores. Chinaware and glassware stores. Delicatessens and specialty food stores. Department and general merchandise stores. Drugstores. Electronics sales and repair shops. Florists. 11 Ordinance No. 1, Series of 2008, first reading Food stores. Furniture stores. Gift shops. Hardware stores. Hobby stores. Household appliance stores. Jewelry stores. Leather goods stores. Liquor stores. Luggage stores. Music and record stores. Newsstands and tobacco stores. Pet shops. Photographic studios. Radio and television broadcasting studios. Sporting goods stores. Stationery stores. Supermarkets. Toy stores. Variety stores. Yardage and dry,goods stores. Additional offices, businesses, or services determined to be similar to permitted uses in accordance with the provisions of section 12-7E-2 of this article. Employee housing units as further regulated in Chapter 13 of this Title. 12-7E-4: CONDITIONAL USES: The following conditional uses shall be permitted in the CSC district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Any use permitted by section 12-7E-3 of this article, which is not conducted entirely within a building. Bed and breakfasts as further regulated by section 12-14-18 of this title. Bowling alley. Brew pubs. Child daycare centers. Commercial laundry and cleaning services. Dog kennels. Major arcades. Multiple-family residential dwellings and lodges. Outdoor operation of the accessory uses as set forth in section 12-7E-5 of this article. Private clubs. Private parking structures. Private unstructured parking. Public buildings, grounds and facilities. Public park and recreation facilities. Public utility and public service uses. Ski lifts and tows. Theaters, meetings rooms, and convention facilities. 12 Ordinance No. 1, Series of 2008, first reading Type W employee housing units (EHU) ais provided ip G4apter- 43 Of thiS tXe. Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 15. Article 12-7F, Arterial Business District, of the Vail Town Code is hereby amended as follows (text to be deleted is in sh*ethreugh, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-717-3: PERMITTED USES. The following uses shall be permitted in the arterial business district: Eating and drinking establishments, as follows, are permitted on the first (street) level: Cocktail lounges and bars. Coffee shops, fountains, sandwich shops and restaurant. Personal services and repair shops, as follows, are deemed to be generally accessory and/or supportive of office uses and shall be permitted on the first (street) level: Beauty and barber shops. Shoe repair. Tailors and dressmakers. Travel and ticket agencies. Professional offices, business offices and studios. Radio and television broadcasting studios. Retail stores and establishments, as follows, are deemed to be generally accessory and/or supportive of office uses and are therefore permitted so long as they do not exceed eight thousand (8, 000) square feet in floor area for each such business use and so long as they are located on the first (street) level. Art supply stores. Bookstores. Drugstores. Florists. Newsstands. Stationery stores. Tobacco stores. Additional offices, businesses or services determined to be similar to permitted uses in accordance with the provisions of section 12-717-1 of this article. Employee Housing Units, as further regulated by Chapter 13 of this Title. 12-7F-4: CONDITIONAL USES: A. Enumerated: The following conditional uses shall be permitted in the arterial business district, subject to the issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Any use permitted by section 12-7F-3 of this article, which is not conducted entirely within a building. Bed and breakfasts as further provided by section 12-14-18 of this title. Brew pubs. Child daycare centers. Microbreweries. Private unstructured parking. Public buildings, grounds and facilities. 13 Ordinance No. 1, Series of 2008, first reading Public park and recreation facilities. Public utility and public services uses, including screened outside storage. . Service yards. Transportation businesses. Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 16. Article 12-7H, Lionshead Mixed Use 1 District, of the Vail Town Code is hereby amended as follows (text to be deleted is in , text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-71-1-2: PERMITTED AND CONDITIONAL USES; BASEMENT OR GARDEN LEVEL: B. Permitted Uses: The following uses shall be permitted in basement or garden levels within a structure: Banks and financial institutions. Child daycare centers. Commercial ski storage. . Eating and drinking establishments. Personal services and repair shops. Professional offices, business offices and studios. Public or private lockers and storage. Recreation facilities. Retail establishments. Skier ticketing, ski school and skier services. Travel and ticket agencies. Type 1 employee housing up Employee Housing Units, as further regulated by chapter 13 of this title. Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. 12-7H-3: PERMITTED AND CONDITIONAL USES; FIRST FLOOR OR STREET LEVEL: B. Permitted Uses: The following uses shall be permitted on the first floor or street level within a structure: Banks, with walk-up teller facilities. Child daycare centers- Eating and drinking establishments. Recreation facilities.. Retail stores and establishments. Skier ticketing, ski school and skier services. Travel and ticket agencies. Type Employee Housing Units, as further regulated by chapter 13 of this title. Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. 12-7H-4: PERMITTED AND CONDITIONAL USES, SECOND FLOOR AND ABOVE: A. Permitted Uses, Exception: The following uses shall be permitted on those floors above the first floor within a structure: Accommodation units. 14 Ordinance No. 1, series of 2008, first reading Attached accommodation units. Lodges. Multiple-family residential dwelling units, timeshare units, fractional fee clubs, lodge dwelling units, and emp"e housing units (type W (04U) as preVided in GhapteF 1 of this title. Type -fI? emp cee housing unit Employee Housing Units, as further regulated by chapter 13 of this title. Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. Section 17. Article 12-71, Lionshead Mixed Use 2 District, of the Vail Town Code is hereby amended as follows (text to be deleted is in strip, text that is to be added is- bold. Sections of text that are not amended have been omitted.) 12-71-2: PERMITTED AND CONDITIONAL USES; BASEMENT OR GARDEN LEVEL: B. Permitted Uses: The following uses shall be permitted in basement or garden levels within a structure: Banks and financial institutions. Child daycare centers. Commercial ski storage. Eating and drinking establishments. Personal services and repair shops. Professional offices, business offices and studios. Public or private lockers and storage. Recreation facilities. Retail establishments. Skier ticketing, ski school and skier services. Travel and ticket agencies. Type-1V Employee Housing Units, as further regulated by chapter 13 of this title. Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. 12-71-3: PERMITTED AND CONDITIONAL USES; FIRST FLOOR OR STREET LEVEL: B. Permitted Uses: The following uses shall be permitted on the first floor or street level within a structure: Banks, with walk-up teller facilities. Child daycare centers. Eating and drinking establishments. Recreation facilities. Retail stores and establishments. Skier ticketing, ski school and skier services. Travel and ticket agencies. Type -fl? employ?ee housing unit Employee Housing Units, as further regulated by chapter 13 of this title. Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. 15 Ordinance No. 1, Series of 2008, first reading 12-71-4: PERMITTED AND CONDITIONAL USES; SECOND FLOOR AND ABOVE: A. Permitted Uses; Exception: The following uses shall be permitted on those floors above the first floor within a structure: Lodges and accommodation units. Multiple-family residential dwelling units, timeshare units, fractional fee clubs, lodge dwelling units, and of thi Type 11F employee housing upit Employee Housing Units, as further regulated by chapter 13 of this title. Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. Section 18. Article 12-8A, Agriculture and Open Space District, of the Vail Town Code is hereby amended as follows (text to be deleted is in tgkethroug4, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-8A-3: CONDITIONAL USES: The following conditional uses shall be permitted, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Any use within public parks, recreation areas, and open spaces which involves assembly of more than two hundred (200) persons together in one building or group of buildings, or in one recreation area or other public recreational facility. Cemeteries. Low power subscription radio facilities. Private golf, tennis, swimming and riding clubs, and hunting and fishing lodges. Public and private schools. Religious institutions. Semipublic and institutional uses, such as convents and religious retreats. Ski lifts and tows. Type ll em eyee housing units (EM l1 ` s r.i ?.v Jv provided in GhaptOF 13 Gf thiS tit Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 19. Article 12-8D, Ski Base Recreation District, of the Vail Town Code is hereby amended as follows (text to be deleted is in sft*ethr-ough, text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-8D-3: CONDITIONAL USES: The following conditional uses shall be permitted in the ski base/recreation district, subject to the issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Addition or expansion of storage buildings for mountain equipment. Additions or expansions of public. or private parking structures or spaces. Bed and breakfast as further regulated by section 12-14-18 of this title. Child daycare center. Food and beverage cart vending. Public, private or quasi-public clubs. Recreation room/minor arcade. Redevelopment of public parks, playgrounds. Redevelopment of ski lifts and tows. 16 Ordinance No. 1, Series of 2008, first reading Redevelopment of ski racing facilities. Redevelopment of water storage extraction and treatment facilities. Seasonal structures to accommodate athletic, cultural, or educational activities. Summer outdoor storage for mountain equipment. Summer seasonal. community offices and programs. Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 20. Article 12-8E, Ski Base Recreation 2 District, of the Vail Town Code is hereby amended as follows (text to be deleted is in c•tr kethrough text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-8E-3: CONDITIONAL USES: The following conditional uses shall be permitted in the ski base/recreation 2 district, subject to the issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Brew pubs. Fractional fee units. Outdoor dining decks and patios. Private and public clubs. Public utility and public service uses.. Type W employee tf 2f provided in Ghapter- 43 of this tWe. Employee Housing Units, as further regulated by Chapter 13 of this Title. Additional uses determined to be similar to conditional or permitted uses described in this chapter, in accordance with the provisions of section 12-3-4 of this title. Section 21. Article 12-9B, Parking District, of the Vail Town Code is hereby amended as follows (text to be deleted is in ctr kethr-ough text that is to be added is bold. Sections of text that are not amended have been omitted.) 12-9B-3: CONDITIONAL USES: The following conditional uses shall be permitted subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Major arcades. Parks and recreational facilities. Private or public off street vehicle parking structures. Public uses, private office and commercial uses that are transportation, tourist or town related and that are accessory to a parking structure. Temporary construction staging sites. For the purposes of this section, a "temporary construction staging site" shall mean a site on which, for a temporary period of time, construction materials, heavy construction equipment, vehicles and construction trailers may be stored. Tine Ill emn"e houisinn upks 69A l) V..n Employee Housing Units, as further regulated by Chapter 13 of this Title. Section 22. Article 12-9C, General Use District, of the Vail Town Code is hereby amended as follows (text to be deleted is in otr keth -ough text that is to be added is bold. Sections of text that are not amended have been omitted.) 17 'Ordinance No. 1, Series of 2008, first reading 12-9C-3: CONDITIONAL USES: A. Generally. The following conditional uses shall be permitted in the GU district, subject to issuance of a conditional use permit in accordance with the provisions of chapter 16 of this title: Child daycare .centers. Equestrian trails. Golf courses. Healthcare facilities. Helipad for emergency and/or community use. Major arcades. Plant and tree nurseries, and associated structures, excluding the sale of trees or other nursery products, grown, produced or made on the premises. Public and private parks and active outdoor recreation areas, facilities and uses. Public and private schools. Public and quasi public indoor community facilities. Public buildings and grounds. Public parking structure. Public theaters, meeting rooms and convention facilities. Public tourist/guest service related facilities. Public transportation terminals. Public unstructured parking. Public utilities installations including transmission lines and appurtenant equipment. Religious institutions. Seasonal structures or uses to accommodate educational, recreational or cultural activities. Ski lifts, tows and runs. Employee Housing Units, as further regulated by Chapter 13 of this Title. Water and sewage treatment plants. Section 23. Section 12-13-4, Employee Housing, of the Vail Town Code is hereby amended as follows (text to be deleted is in , text that is to be added is bold. Sections of text that are not amended have been omitted.) 18 Ordinance No. 1, Series of 2008, first reading 12-13-4: REQUIREMENTS BY EMPLOYEE HOUSING UNIT (EHU) TYPE EHU' Type I Zoning districts permitted by right or by conditional use Ownership/ Transference The EHU n4ay be 891 or- transterm separate unit. on the I?Ne+?i`- deed Fe8triGtien on be units to aNew-salle) The EHU may be sold or transferred separately. Permitted Use: Primary/Secondary Residential, Two-Family Residential (all-with only on lots less than 14, 000 sq. ft. in size) The EHU shall not-be sold or transferred separately from the unit it is associated with. Additional GRFA (Site Geverage GRFA= The EHU is entitled to an additional 500 550 sq. ft. GRFA deduction. Additional Site Garage Coverage /Reduced CrediVStorage Landscape Area Requirement SITE COVERAGE: The site is entitled to an additional 5% of site coverage for the EHU. LANDSCAPE AREA: The site is entitled to a reduction of landscape area by 5% (reduced to 55% of site area) for the EHU. Type ll Permitted Use: Single-Family Residential, Two- Family Residential, Primary/Secondary Residential Conditional Use: Agriculture & Open Space Type 111 Permitted Use: Lionshead Mixed Use 1 Lionshead Mixed Use 2 Conditional Use: Residential Cluster Low Density Multiple- Family Medium Density Multiple-Family High Density Multiple- Family Public The EHU may be sold or transferred separately. The EHU is entitled to an additional 500 550 sq. ft. GRFA cre deduction. Per Seetien '. 2 15 3, The EHU is excluded from the calculation of GRFA. N/A N/A Allowed 300 sq. ft. of garage area per enclosed vehicle space at a maximum of 2 parking spaces (600 sq. ft.). All units not constructed with a garage shall be required a minimum 75 sq. ft. of storage area in addition to normal closet space. This 75 sq. ft. shall be a credit for storage only. Allowed 300 sq. ft. of additional garage area for the EHU. All units not constructed with a garage shall be required a minimum 75 sq. ft. of storage area in addition to normal closet space. This 75 sq. ft. shall be a credit for storage only. N/A Parking Minimum/Maximum . Density GRFA of an EHU Per Chapter . 12-10 as a N/A dwelling unit. Counts The EHU is allowed as 2nd a second unit on the property. Per Chapter Dweging unit The EHU is 12-10 as a 300 sq. ft. min. and allowed as a dwelling unit. 1,200 sq. ft. max. 3rd third unit on property. Dees net Gaunt as density. Per Chapter A. Dwelling unit: Alet Counted 12-10 as a 300 sq. ft. min. and as de4i4,: dwelling unit. 1,200 sq. ft. max. The EHU is 8. Dormitory unit.-: excluded from the houses not Fne.re calculation than five (5) person andkneludes of density. fas23, ' :3niHien baths ! ; 3.%La ewe hundred (200) sq. ft. of-GRA4 200 sq. ft. 19 Ordinance No. 1, Series of 2008, first reading Type IV Type IV-CL (Commercial Linkage mitigation unit) Type IV-IZ (Inclusionary Zoning mitigation unit) Type V Accommodation Public Accommodation 2 Commercial Core 1 Commercial Core 2 Commercial Core 3 Commercial Service Center Arterial Business Parking District General Use Heavy Service Ski Base/Recreation Ski Base/ Recreation 2 Special Development District Any dwelling unit may be designated and deed restricted as a Type IV EHU, unless already designated as an EHU. Permitted Use: Any dwelling unit may be designated and deed restricted as a Type IV-CL EHU, unless already designated as an EHU. Permitted Use: Any dwelling unit may be designated and deed restricted as a Type IV-1Z EHU, unless already designated as an EHU. Permitted Use: Hillside Residential The EHU may ealy be sold or transferred separately. The EHU may be sold or transferred separately. The EHU shall be linked to a specific Commercial Linkage employee housing mitigation requirement. The EHU maybe sold or transferred separately. The EHU shall be linked to a specific Inclusionary Zoning employee housing mitigation requirement. The EHU shall not be sold or transferred separately from the unit it is associated with. N/A shag be deteFmk4&d by Zoning on prepw* N/A N/A The E is no entitled to add&onal GRFA.. N/A N/A N/A N/A N/A 20 min. for each person occupying the EHU. Per Chapter shallbe by Zen/. ng on 12-10 as a by Zoning on deteRnined b property- dwelling unit pmpeF13, g en N/A N/A property: The EHU is calculated as density. N/A Per Chaptei Per Chapter 12-23, The EHU is 12-10 as a Commercial calculated as dwelling unit. Linkage density. N/A Per Chapter Per Chapter 12-24, The EHU is 12-10 as a Inclusionary calculated as dwelling unit. Zoning density. The c,,o HU is no no Per Chapter 1,200 sq. ft. max. The EHU is e.nfiflerl to additional 12-10 as a allowed garage area sredib dwelling unit eounts as a N/A second 2nd unit on the property. Ordinance No. 1, Series of 2008, first reading Type V1 Conditional Use: As governed by the Allowable GRA4 shall Allowable-site Housing management plan. be As determined by oevemge and Shall not be subdivided the PEC. land6Gape area shag or divided into any form be As determined by of time share, interval the PEC. ownership, or fractional fee unit. Type Vll-CL Permitted Use: The EHU may be sold The EHU is N/A (Commercial High Density or transferred excluded from the Linkage Multiple Family, separately. The EHU calculation of mitigation Housing District shall be linked to a GRFA. unit) Public specific Commercial Accommodation, Linkage employee Public housing mitigation Accommodation 2, requirement. Commercial Core 1, Commercial Core 2, Commercial Core 3, Commercial Service Center, Arterial Business, General Use, Lionshead Mixed Use 1, Lionshead Mixed Use 2, Ski Base/Recreation, Ski Base/Recreation 2, Parking District and Special Development Districts Requk-ement;s she l be As determined by the PEC. N/A Per Chapter 12-10 as a dwelling unit or-as-required or a parking management plan per Article 12-61, Housing District Per Chapter 12-10 as a dwelling unit or a parking management plan per Chapter 12- 23, Commercial Linkage Allowable GF94 shalt be As determined by the PEC. Per Chapter 12-23, Commercial Linkage Allowable density sktalt be As determined by the PEC. The EHU is excluded from the calculation of density. 21 Ordinance No. 1, Series of 2008, first reading TypeVll-IZ (Inclusionary Zoning mitigation unit) Permitted Use: Permitted Use: High Density Multiple Family, Housing District Public Accommodation, Public Accommodation 2, Commercial Core 1, Commercial Core 2, Commercial Core 3, Commercial Service Center, Arterial Business, General Use, Lionshead Mixed Use 1, Lionshead Mixed Use 2, Ski Base/Recreation, Ski Base/Recreation 2, Parking District, and Special Development Districts The EHU may be sold or transferred separately. The EHU shall be linked to a specific Inclusionary Zoning employee housing mitigation requirement. The EHU is N/A excluded from the calculation of GRFA. 22 N/A Per Chapter 12-10 as a dwelling unit or a parking management plan per Chapter 12- 24, Inclusionary Linkage. Per Chapter 12-24, Inclusionary Zoning The EHU is excluded from the calculation of density. Ordinance No. 1, Series of 2008, first reading Section 24. Chapter 12-23, Commercial Linkage, of the Vail Town Code is hereby amended as follows (text to be deleted is in , text that is to be added is bold): 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). 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. 23 Ordinance No. 1, Series of 2008, first reading 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 new Service/Repair Shop net floor area Business Office and Professional 3.2 Employees per 1, 000 feet of new Office (excluding Real Estate net floor area 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 (2091o) of-the employees generated, pursuant to Table 23-1, or the nexus study, in accordance with the requirements of this Chapter. 24 Ordinance No. 1, Series of 2008, first reading For example, for a development proposing Z500 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 Size Number of (GRFA) Employees Housed Dormitory 250 1 Studio 438 1.25 One-Bedroom 613 1.75 Two-Bedroom 788 2.25 Three or More - 1,225 3.5 Bedroom 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 F-equir-ed by in accordance with Chapter 10 of this Title. 1. Exception for on-site units: At the discretion of the governing body, variations to the parking standards outlined in Chapter 10 of this Title may be approved during the review of an employee housing plan subject to a parking management plan. The parking management plan may be approved by the governing body and may provide for a reduction in the parking requirements for on-site units based on a demonstrated need for fewer parking spaces than Chapter 10 of this Title would require. For example, a demonstrated need for a reduction in the required parking could include: 25 Ordinance No. 1, Series of 2008, first reading a. Proximity or availability of alternative modes of transportation including, but not limited to, public transit or shuttle services. b. A limitation placed in the deed restrictions limiting the number of cars for each unit. c. A demonstrated permanent program including, but not limited to, rideshare programs, car-share programs, shuttle service, or staggered work shifts. 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. C } . SHUB shall not be inGluded ip the , ver C -y EHU sha# be a#eweed three hundred (300) square feet 4 .`. y°?aFage shall include a,r 75) Juarev feet ster4age ?W uarlr WAP to to G qwv.eat for- v I- VU,TIp!-/- 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. For all new construction and demo/rebuild projects that result in a mitigation requirement of 1.25 employees or greater, no less than one-half (112) the mitigation of employee housing required by this Chapter shall be accomplished with on-site units. 1. Exceptions: At the sole discretion of the applicable governing body, an exception may be granted from this on-site unit requirement should the applicable governing body make one of the following.findings: 26 Ordinance No. 1, Series of 2008, first reading a. That implementation of the on-site unit mitigation method would be contrary to the intent and purpose of the applicable zone district. b. That implementation of the on-site unit mitigation method would be contrary to the goals of the applicable elements of the Vail Comprehensive Plan and the Town's development objectives. C. That exceptional or extraordinary circumstances or conditions apply to the site that prevents the implementation of the on-site unit mitigation method d. That the method of mitigation proposed better achieves the intent and purpose of this Chapter and general and specific purposes of this Title than the on-site mitigation unit method. 2. All on-site EHUs shall be deed restricted as a "Type IV-CL" (type four, commercial linkage mitigation) or "Type VII-CL" (type seven, commercial linkage mitigation) EHU in accordance with Chapter 12-13, Employee Housing, of this Title. 3. At the sole discretion of the applicable governing body, an applicant may provide on-site dormitory style units. 4. An applicant may provide a payment of fees-in-lieu for any fractional remainder of the requirement generated under this Chapter totaling less than 1.25 employees. 5. Any remaining portion of the. mitigation requirement not provided with on-site units may be provided in accordance with Section 12-23-6B below. B. For all development projects except those mitigated by Section 12-23-6A above, the mitigation of employee housing required by this Chapter shall be accomplished through one, or at the developer's discretion, any combination, of the following methods: 1. On-site units. a The F-equioite number- of E-H In er a en #en theLeef, notr-UGted ergsiteprovided tl? that a..11 o site CH s rx;sy be r??r,?--- - on - s-?a are deed Fesk-irted in aGGor4anee MM this All on-site EHUs shall be deed restricted as a "Type IV-CL" (type four, commercial linkage mitigation) or "Type VII-CL" (type seven, commercial linkage mitigation) EHU in accordance with Chapter 12-13, Employee Housing, of this Title. 27 Ordinance No. 1, Series of 2008, first reading b. At--th sale -dfs6Fet of the_-PAwnia and denngery fu, tI less- the apprcazin-jo iS-fo; --a Spevral v ac a methed Of . At the sole discretion of the applicable governing body, an applicant may provide on-site dormitory style units. 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 This method does not mitigate the on- site unit requirements of Section 12-23-6A above. 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 D/nnnin.g and CTn„i -onnmenta be hOUS-Ed, ..'on theFeef, requiFed 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. 28 Ordinance No. 1, Series of 2008, first reading . 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 p rti' I fees in lieu shall be aid when the Ga/Gulatinn to rl^t^rmin 1 the number- of employees gen^r ted Unrl^r this Chapter- Fe&ufc in a ffa&tiena number- of employees. 12-23-7: MITIGATION BANK: A. The Town will provide credit for any EHUs constructed on-site, constructed off-site, or otherwise 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 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, except those exempt per Section 12-23-5, shall include an employee housing plan OF °tat^^'^nt ^f exemption which includes the following: D. 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, 29 Ordinance No. 1, Series of 2008, first reading 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. 4;. B. Governing Body: The Administrator shall approve, approve with modifications or deny an employee housing plan involving a total mitigation requirement of less than 1.25 employees. The Planning and Environmental Commission shall approve, approve with modifications or deny an employee housing plan unless the plan involves a total mitigation requirement of less than 1.25 employees; the development phan is located within a Special Development District; or the plan includes a request to convey property., , approve MM medXGatiops-, or- depy the employee housing plan. The Town Council shall approve, approve with modifications or deny an employee housing plan for a development located within a Special Development District or a plan requesting to convey property. Before granting approval of an employee housing plan, _ the applicable governing body shall make findings that the employee housing plan conforms to the general and specific purposes of this title, and that the plan is compatible with the applicable elements of the Vail Comprehensive Plan and the development objectives of the Town. D-. E. 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, in accordance with the provisions of this Chapter. F. An approved employee housing plan shall become part of the approved application for development review for the affected site. G. Requests to amend an approved employee housing plan shall be reviewed in accordance with the procedures described in this Chapter. At the discretion of the Administrator, minor amendments that do not alter the basic intent or methodology of the plan may be approved, or approved with modifications, or denied by the Administrator. 30 Ordinance No. 1, Series of 2008, first reading 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 occupied by an employee rented and shall not remain vacant for a period in excess of three (3) consecutive months unless, despite reasonable and documented efforts to rent occupy the EHU, 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 (unless owner-occupied); 3. The employee's employer; and 4. Evidence to demonstrate that at least one tegant person 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 Commission for an adjustment of the requirements imposed by this Chapter. If the Planning and Environmental Commission determines that the application of 31 Ordinance No. 1, Series of 2008, first reading 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 25. Chapter 12-24, Inclusionary Zoning, of the Vail Town Code is hereby amended as follows (text to be deleted is in striketh; ou ", text that is to be added is bold): 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. 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); 32 Ordinance No. 1, Series of 2008, first reading 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 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 33 Ordinance No. 1, Series of 2008, first reading Three or More -Bedroom 1,225 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 FequiFed by in accordance with Chapter 10 of this Title. 1. Exception for on-site EHUs: At the discretion of the governing body, variations to the parking standards outlined in Chapter 10 of this Title may be approved during the review of an employee housing plan subject to a parking management plan. The parking management plan may be approved by the governing body and may provide for, a reduction in the parking requirements for on-site units based on a demonstrated need for fewer parking spaces than Chapter 10 of this Title would require. For example, a demonstrated need fora reduction in the required parking could include: a. Proximity or availability of alternative modes of transportation including, but not limited to, public transit or shuttle services, b. A limitation placed in the deed restrictions limiting the number of cars for each unit. c. A demonstrated permanent program including, but not limited to, rideshare programs, car-share programs, shuttle service, or staggered work shifts. 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. C C GE)PtFBI: _G. SveFy EHU sha# be allowed thFee hund-Fed (300) square feet 9 additional vG Any E44U that does not 3 c garage shall 444ude a 75) J 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. 34 Ordinance No. 1, Series of 2008, first reading 12-24-5: EXEMPTIONS: The following shall be exempt from this Chapter: 1. The remodeling of an existing dwelling unit, 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: A. For all new construction and demo/rebuild projects that result in a mitigation requirement of 438 sq. ft. or greater, no less than one-half C12) the mitigation of employee housing required by this Chapter shall be accomplished with on-site units. 1. Exceptions: At the sole discretion of the applicable governing body, an exception may be granted from this on-site unit requirement should the applicable governing body make one of the following findings: a. That implementation of the on-site unit mitigation method would be contrary to the intent and purpose of the applicable zone district b. That implementation of the on-site unit mitigation method would be contrary to the goals of the applicable elements of the Vail Comprehensive' Plan and the Town's development objectives. C. That exceptional or extraordinary circumstances or conditions apply to the site that prevents the implementation of the on-site unit mitigation method d. That the method of mitigation proposed better achieves the intent and purpose of this Chapter and general and specific purposes of this Title than the on-site mitigation uttit method. 2. All on-site EHUs shall be deed restricted as a "Type IV-IZ" (type four, inclusionary zoning mitigation) or "Type VI1-1Z" (type seven, inclusionary zoning mitigation) EHU in accordance with Chapter 12-13, Employee Housing, of this Title. 3. At the sole discretion of the ,applicable governing body, an applicant may provide on-site dormitory style units. 35 Ordinance No. 1, Series of 2008, first reading 4. An applicant may provide a payment of fees-in-lieu for any fractional remainder of the requirement generated under this Chapter totaling less than 438 sq. ft. of EHU floor area. 5. Any remaining portion of the mitigation requirement not provided with on-site units may be provided in accordance with Section 12-24-68 below. A. B. For all development projects, except those mitigated by Section 12-24-6A above, the mitigation of employee housing required by this Chapter shall be accomplished through one, or at the developer's discretion, any combination of the.following methods: On-site units. On-site units. a. The mquis;f,, n„mhor of 04 to or- a pertion th f may lie-6rr?F}Str -r-ted on--site, pre 'rded that all o site-EML s s:-e All on-site EHUs shall be deed restricted as a "Type 1V /Z" (type four, inclusionary zoning, mitigation) or "Type Vll-IZ" (type seven, inclusionary zoning mitigation) EHU in accordance with Chapter 12-13, Employee Housing, of this Title. b. At the sE!e-discretien-ef t?Planr,i,,?' and dvT47'4v. )' aT'iTi#J, JJ Yfe 45?.J fGr v C/.' eis Development nrsWG In ? ;G h = o the Town GOUnG7 in 8 801a s c method ef . At the sole discretion of the applicable governing body, an applicant may provide on-site dormitory style units. 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. This method does not mitigate the on-site unit requirements of Section 12-24-6A above. 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. 36 Ordinance No. 1, Series of 2008, first reading 4. Payment of fees-in-lieu. The ° mg Gemm?ssibn may approve f a fee-in-lieu- fGF each squa a font of 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. 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 on-site, constructed off-site, or otherwise 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, except those exempt per Section 12-24-5, shall include an employee housing plan OF statengen exemption ich includes the following: 8. 37 Ordinance No. 1, Series of 2008, first reading 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; 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. G. B. Governing Body: The Administrator shall approve, approve with modifications or deny an employee housing plan involving a total mitigation requirement of less than 438 square feet of EHU floor area. The Planning and Environmental Commission shall approve, approve with modifications, or deny an employee housing plan unless the plan involves less than 438 square feet of EHU floor area; the development plan is located within a Special Development District; or the plan includes a request to convey property and then the Town GounG# shag - , Qr rlenv the em fOyee 4e148inn plan m The Town Council shall approve, approve with modifications or deny an employee housing plan for a development located within a Special Development District or a plan requesting to convey property. Before granting approval of an employee housing plan, the applicable governing body shall make findings that the employee housing plan conforms to the general and specific purposes of this title, and that 38 Ordinance No. 1, Series of 2008, first reading the plan is compatible with the applicable elements of the Vail Comprehensive Plan and the development objectives of the Town. D- C. 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, in accordance with the provisions of this Chapter. EL. D. An approved Employee Housing Plan shall become part of the approved application for development review for the affected site. E. Requests to amend an approved employee housing plan shall be reviewed in accordance with the procedures described in this Chapter. At the discretion of the Administrator, minor amendments that do not alter the basic intent or methodology of the plan may be approved, or approved with modifications, or denied by the Administrator. 12-24-9: OCCUPANCYAND DEED RESTRICTIONS: A. No EHU shall be subdivided or divided into any form of timeshare unit or fractional fee club unit. 8. 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 occupied by an employee rented and shall not remain vacant for a period in excess of three (3) consecutive months unless, despite reasonable and documented efforts to rent occupy the EHU, 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, 2. The rental rate (unless owner-occupied); 3. The employee's employer; and 4. Evidence to demonstrate that at least one tenan person residing in the EHU is an employee at a business located in Eagle County. 39 - Ordinance No. 1, Series of 2008, first reading 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. 8. 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 26. 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 27. 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. 40 Ordinance No. 1, Series of 2008, first reading Section 28. 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 29. 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 1st day of April, 2008 and a public hearing for second reading of this Ordinance set for the 15th day of April, 2008, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Richard D. Cleveland, Mayor Attest: Lorelei Donaldson, Town Clerk 41 Ordinance No. 1, Series of 2008, first reading Vail Town Council Attachment: B Extraordinary people. Extraordinary care. Vail Valley Medical Center WWW.VVMC.COM March 7, 2008 Planning and Environmental Commission Town Council Town of Vail 75 South Frontage Road Vail, Colorado 81657 Re: Proposed changes to Housing Regulations Dear Commissioners and Council Members, 181 West Meadow Drive, Vail, CO 81657 PO Box 40,000, Vail, CO 81658 We understand that the Town is proposing to modify the employee housing requirements for development and redevelopment projects within the Town. The proposed regulations would require that mitigation for employee housing occur 100% on the site of the development project. We understand that the Planning and Environmental Commission, at its sole discretion, could approve an exception to allow offsite mitigation or payment in lieu but only after applying some additional and more stringent criteria. The Vail Valley Medical Center (VVMC) is very concerned about the impact of the adopted regulations as the proposed amendments would make redevel"viiaent of the medical center extraordinarily difficult and expensive and therefore might result in unintended consequences. We have expressed this concern during the initial development of Ordinances NO. 7, 8, 9 and Resolution NO. 10, Series 2007. VVMC is a vital component of the Town and the community. This type of facility is part of the municipal infrastructure of a vibrant and healthy community. The services provided by this facility are what the public expects to find in a mature community such as ours. During the review of the current regulations we asked that the Town include language that would allow VVMC or similar public facilities to have special consideration in the review of a housing plan. We asked for some flexibility due to our not-for-profit healthcare mission. Any redevelopment of our property would not be motivated by profit but by provision of patient care services. An additional concern is that major redevelopment will likely be funded by philanthropy and it could be a major concern of donors to know that the project could not be started without millions invested, potentially on site for workforce housing. No such language was included in the original draft as it was suggested that VVMC could apply for a variance. After reviewing the regulations we believe that the variance criteria would never allow for the flexibility that would be necessary to allow VVMC to appropriately respond to the need for quality medical services on the Vail campus. We would request again that language be added to the regulations that provide for flexibility for public or quasi public uses. The Vail Valley Medical Center has always recognized the importance of its employees and the measures necessary to attract and maintain a qualified healthcare workforce. VVMC is the second largest employer in Eagle County and serves as a regional medical facility. We have facilities in Vail, Avon, Edwards, Eagle, and Gypsum and we have approximately 94 employees residing in Vail, 70 in Summit County, 52 in Leadville, 16 in Mintum, 118 in Avon, 82 in Edwards, 82 in Eagle, and 43 in Gypsum. VVMC Administration and the Governing Board are fully engaged in the understanding of our staffs needs and continue to develop our housing assistance program. Within our ongoing discussions, it is clear that we need to seek several mechanisms to assist staff in housing and not just merely tie them to the Town of Vail. VVMC's housing program currently includes: • Housing subsidies in the form of reduced housing payments • Employee units controlled by VVMC on the Tames property in Avon • Units under rental lease program throughout the County In 2007 alone, VVMC spent over $600,000 to ensure adequate housing for its employees. We are providing this information to show that VVMC has a commitment of providing housing assistance to its employees and will continue to address this issue. We have been able to react to the needs of our staff in variety of ways. As previously mentioned we will continue our housing assistance efforts with our specific staff interest in mind. We invite anyone to meet with us to fully understand the function and operations of VVMC as we want to be completely transparent with the Town and the community. We look forward to developing new and exciting partnerships with the Town to help create a community with top notch infrastructure and facilities of which we can all be proud. Allowing us flexibility will help make both VVMC and the Town a better place. Sincerely, Stan Anderson Senior Vice President of Operations Vail Valley Medical Center Vail Town Council Attachment: C Mauriello Planning Group MEMORANDUM TO: Town of Vail Planning Commission FROM: Mauriello Planning Group DATE: March 10, 2008 RE: Analysis of Proposed Amendments to the Employee Housing Regulations Based on the staff memorandum for the Planning Commission Meeting on March 10, 2008, we reviewed the examples provided by staff in the draft of Ordinance 1, Series of 2008, on Pages 57-58 (Inclusionary Zoning). The analysis provides the following: Givens: 0 120,000 sq. ft. of GRFA • = 60 dwelling units at 2000 sq ft. per unit • At. 11 employees per unit = 6.6 employees generated (based on the Town of Vail Nexus Study) Existing Regs: (10% mitigation rate) 12,000 sq. ft. of employee housing @ 350 per employee = 34 employees to be housed (5157o of employees generated) Proposed Regs with the example: (ends up at 27.9% mitigation rate) 60,000 sq. ft. on-site = 6000 sq. ft. to be mitigated 50,000 sq. ft. off-site = 25,000 sq. ft. to be mitigated 10,000 sq.ft. through fee-in-lieu = 2500 sq. ft. to be mitigated 33,500 sq. ft. of employee housing @ 350 per employee = 95 employees to be housed (1439% of employees generated) Vail Town Council Attachment: D MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: March 10, 2008 SUBJECT: A request for a final recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendment, Vail Town Code, for a prescribed regulations amendment to Chapters 12-23, Commercial Linkage and 12- 24, Inclusionary Zoning, Vail Town Code, to establish standards and criteria related to mitigating employee housing requirements, and setting forth details in regard thereto. (PEC070075) Applicant: Town of Vail, represented by Nina Timm, Housing Coordinator Planner: Bill Gibson 1. SUMMARY The Applicant, Town of Vail, is requesting a final recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendment, Vail Town Code, for a prescribed regulations amendment to Chapters 12-13, Employee Housing, 12- 23, Commercial Linkage and 12-24, Inclusionary Zoning, Vail Town Code, to establish standards and criteria related to mitigating employee housing requirements. In addition to amendments to the Chapters listed above there will be amendments to all the established zone districts which contain employee housing units as a permitted or conditional use. The Applicant has submitted the application in response to a request from the Planning and Environmental Commission to clarify certain portions of the adopted regulations. Staff is recommending that the Planning and Environmental Commission forwards a recommendation of approval of the proposed amendments to Chapters 12-13, Employee Housing, 12-23, Commercial Linkage and 12-24, Inclusionary Zoning, Vail Town Code, based upon the criteria found in Section VI of this memorandum. II. DESCRIPTION OF REQUEST The Applicant, Town of Vail, is requesting a final recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendment, Vail Town Code, for a prescribed regulations amendment to Chapters 12-13, Employee Housing, 12- 23, Commercial Linkage and 12-24, Inclusionary Zoning, Vail Town Code, to establish standards and criteria related to mitigating employee housing requirements. In addition to amendments to the Chapters listed above there will be amendments to Articles 12-6A, Hillside Residential District; 12-613, Single- Family Residential District; 12-6C, Two-family Residential District; 12-6D, Two- Family Primary/Secondary Residential District; 12-6E, Residential Cluster District; 12-6F, Low Density Multiple-Family District; 12-6G, Medium Density Multiple-Family District; 12-6H, High Density Multiple-Family District; 12-61, Housing District; 12-7A, Public Accommodation District; 12-713, Commercial Core 1 District; 12-7D, Commercial Core 3 District; 12-7E, Commercial Service Center; 12-7F, Arterial Business District; 12-7H, Lionshead Mixed Use 1 District; 12-71, Lionshead Mixed Use 2; District; 12-7J, Public Accommodation 2 District; 12-8A, Agricultural and Open Space District; 12-8D, Ski Base/Recreation District; 12-8E, Ski Base/Recreation 2 District; 12-913, Parking District; 12-9C, General Use; to incorporate changes to the employee housing types listed as permitted or conditional uses within each district and facilitate the implementation of these regulations. The Applicant is requesting approval of the Housing Authority's recommendation that no less than one-half ('/2) the mitigation of employee housing be required on- site for all new construction and demo/rebuild projects based: This recommendation is based upon the following factors: The scarcity of developable land resources; The financial, political, and practical difficulties associated with the construction of any free standing employee housing development; The need for additional workforce housing to ensure the long term sustainability of Vail's economy; An opportunity to improve the Town's sense of community; On-site units create "live-work" opportunities; On-site units create less demand on,, and impact to, the Town's infrastructure; The Town of Vail has an opportunity to become a leader in addressing employee housing within Eagle County; and, 70% of the community's workforce housing needs created by future development are not addressed by these regulations; In a straw poll, the Commission preferred this recommendation over Staff's previous proposal that new and demo/rebuild projects provide all their required mitigation on-site. The Applicant is requesting approval of the Commission's recommendation to weight the methods of mitigation to further incent on-site employee housing mitigation. Staff proposes the following rates apply to any mitigation remainder for new construction and demo-rebuild projects, and that these rates apply to all other development projects that have employee housing requirements. For projects subject to Commercial Linkage requirements: 1. On-Site Units: 20% of the employees generated. 2. Conveyance of Property On-Site: 20% of the employees generated. 3. Off-Site Units: 100% of the employees generated. 4. Payments of Fee in Lieu: 25% of the employees generated. 2 . 5. Conveyance of Property Off-Site: 20% of the employees generated For projects subject to Inclusionary Zoning requirements: 1. On-Site Units: 10% of the net new GRFA. 2. Conveyance of Property On-Site: 10% of the net new GRFA. 3. Off-Site Units: 50% of the net new GRFA. 4. Payments of Fee in Lieu: 25% of the net new GRFA. 5. Conveyance of Property Off-Site: 10% of the net new GRFA. The Applicant is also requesting approval of the Commission's recommendation to include additional incentives for on-site employee housing mitigation. Staff has incorporated language into Sections 12-23-3 and 12-24-3 found in the draft Ordinance that will allow the governing bodies (Council, Commission, or Staff) the discretion to reduce the parking requirements for on-site EHUs. The proposed language is similar to that which grants the Commission authority to reduce the parking requirement for EHUs in the Housing District. The governing body may approve a parking management plan and a reduction in the required parking based upon the following considerations: a. Proximity or availability of alternative modes of transportation including, but not limited to, public transit or shuttle services. b. A limitation placed in the deed restrictions limiting the number of cars for each unit. c. A demonstrated permanent program including, but not limited to, rideshare programs, car-share programs, shuttle service, or staggered work shifts. Additionally, the Applicant is requesting approval of the Commission's recommendation to ensure flexibility should a developer proposal better achieves the intent and purpose of the Employee Housing chapter and the Methods of Mitigation section than the on-site unit method. The Applicant and the Vail Local Housing Authority also requesting approval of the following additions and/or changes to Chapters 12-23, Commercial Linkage and 12-24, Inclusionary Zoning. Establishing that any required mitigation of less than 1.25 employees or any remaining unit floor area of less than 438 sq. ft. may always be provided through the fee-in'-lieu mitigation method; 3 • Establishing that projects resulting in a total mitigation requirement of less than 1.25 employees or less than one whole unit will be reviewed administratively; • Establishing policies to address potential requests to modify an approved Employee Housing Plan; • Creating a new EHU "type" category in the Town Code for any unit used to mitigate a commercial linkage or inclusionary zoning requirement. This is necessary to distinguish these mitigation units from the other six types of EHUs already allowed within the Town of Vail; • Clarifying that the intent of Table 23-2, Size of Employee Housing Units, for Commercial Linkage was that a three bedroom unit and any unit with more than three bedrooms. mitigate at the same rate of 3.5 employees; • Clarifying the Mitigation Banking regulations; • Allowing mitigation types of EHUs as permitted uses in'the applicable zone districts, rather than conditional uses. Staff has identified the proposed changes to be made in the attached draft Ordinance (Attachment A). Text that is to be deleted is in strikethre gh text that is to be added is in bold, and sections of text that are not to be amended may be omitted. III. BACKGROUND • There is a substantial, direct, and rational connection between the need for housing of employees generated by new 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." • 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 of Vail through the conjunctive efforts of Commercial Linkage and Inclusionary Zoning. • On April 3, 2007, the Vail Town Council adopted Ordinances Nos. 7 and 8, establishing Chapter 23, Commercial Linkage and Chapter 24, Inclusionary Zoning of the Vail Town Code for the purpose of requiring new development and redevelopment to provide a reasonable and appropriate percentage of new employee housing which has a nexus to new job generation. • At. its December 11, 2007, public hearing, the Planning and Environmental Commission requested Staff bring forward recommendations for amendments to Chapters 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, to better define the Commission's role in reviewing Employee Housing Plans and to clarify the priority of the five approved mitigation methods. • The Vail Local Housing Authority discussed the Commission's request at their December 12, 2007, meeting. The Authority determined that the on-site mitigation method is the highest priority and forwarded a recommendation 4 that half the required employee housing mitigation be required on-site for new construction and demo/rebuild projects. • The Commission discussed this recommendation and numerous other issues related to employee housing at its January 14, 2008, public hearing. At the Town Council's January 22, 2008, Council Member retreat and again at its subsequent public hearings, the Town Council indicated that providing on-site units is the most desirable employee housing mitigation method and fee-in-lieu is the least desirable method, except -when" necessary to address partial requirements. At the February 11, 2008, Planning and Environmental Commission public hearing the Commission requested Staff forward recommendations for amendments to Chapters 12-23, Commercial Linkage and 12-24, inclusionary Zoning to achieve the following: Prioritization of the five approved mitigation methods based on value to the community; • Flexibility and/or incentives for better mitigation options rather than a requirement for all on-site mitigation; and • A predictable review process. • At the February 14, 2008, special meeting of the Vail Local Housing Authority the Authority again discussed establishing a priority order for the allowed employee housing mitigation methods. At the meeting, the Authority reconfirmed its recommendation: At least half of requisite employee housing mitigation must be provided on-site for all new development and demo-rebuild projects where Commercial Linkage and lnclusionary Zoning apply: Without this requirement the Authority does not believe that on-site unit mitigation will be pursued by developers. Much of the discussion regarding the available mitigation options has centered on calculation formulas, financial parity, who would manage the development of housing projects, and the like. However, if these arguments are set aside and the question is asked "what scenario is in the best interest of the community from a long-term planning standpoint", it becomes clear that on-site employee housing will provide: • The most certain delivery of employee housing; The greatest reduction in vehicular traffic (and associated noise and pollution) by employees; • The greatest reduction in public parking needs by employees; 5 • Reduce the loading of employee volume on our public transportation systems; • Best retain employee spending in town of Vail service businesses; and • Most effectively create the energy of a vibrant, lived-in community in our resort core and commercial areas. Additionally, the Authority recommends: The remaining requisite mitigation should be provided via any of the five allowed employee housing mitigation methods, or a combination thereof, at the developer's discretion. This recommendation is based on the Authority's belief that today all five mitigation methods provide value to the community. The Housing Authority supports adding three of the Staff recommended criteria to allow for relief from the on-site requirement. The Authority does not recommend adopting language that allows a developer to provide a creative or "superior" employee housing mitigation plan that could no longer require at least half of the requisite employee housing mitigation be provided on-site. The Housing Authority is also committed to annually reviewing the priority of the five employee housing mitigation methods and offering their recommendation to the Vail Town Council. This review is anticipated in March of each year to coincide with the annual review of the fee-in-lieu rates. • At the February 25, 2008, Planning and Environmental Commission public hearing the Commission recommended: All mitigation methods should be available at the developer's discretion, but the methods of mitigation should be weighted to incent on-site employee housing mitigation. Additional incentives should be given to developers to construct on- site employee housing units. Ensure flexibility should a developer proposal better achieve the intent and purpose of the Employee Housing chapter and the Methods of Mitigation section than the on-site unit method. IV. ROLES OF REVIEWING BODIES Order of Review: Generally, text amendment applications will be reviewed by the Planning and Environmental Commission and the Commission will forward a recommendation to the Town Council. The Town Council will then review the text amendment application. 6 Planning and Environmental Commission: The Planning and Environmental Commission is responsible for the review of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code, and forwarding of a recommendation to the Town Council. V. Vail Local Housing Authority: The Vail Local Housing Authority is responsible for forwarding a recommendation to the Town Council. Design Review Board: The Design Review Board has no review authority over a text amendment to the Vail Town Code. Town Council: The Town Council is responsible for final approval, approval with modifications, or denial of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code. The Town Council 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. APPLICABLE DOCUMENTS Staff believes the following documents are relevant to the review of this proposal: TITLE 12: ZONING REGULATIONS Chapter 12-1, Title, Purpose and Applicability (in part) Section 12-1-2: Purpose A. General. These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. B. Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 7 4. To promote adequate and appropriately located off street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. Chapter 12-3: Administration and Enforcement:" (in part) 12-3-7: AMENDMENT.' C. Criteria and Findings: 2. Prescribed Regulations Amendment: a. Factors, Enumerated: Before acting on an application for an amendment to the regulations prescribed in this title, the planning and environmental commission and town council shall consider the following factors with respect to the requested text amendment: 1. The extent to which the text amendment furthers the general and specific purposes of the zoning regulations; and 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town, and 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and 8 5. Such other factors and criteria the commission and/or council deem applicable to the proposed text amendment. Chapter 13: Employee Housing: (in part) 12-13-1: Purpose: The town's economy is largely tourist based and the health of this economy is premised on exemplary service for Vail's guests. Vail's ability to provide such service is dependent upon a strong, high quality and consistently available work force. To achieve such a work force, the community must work to provide quality living and working conditions. Availability and affordability of housing plays a critical role in creating quality living and working conditions for the community's work force. The town recognizes a permanent, year round population plays an important role in sustaining a healthy, viable community. Further, the town recognizes its role in conjunction with the private sector in ensuring housing is available. Chapter 23: Commercial Linkage: (in part) 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. Chapter 24: Inclusionary Zoning: (in part) 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. TOWN OF VAIL LAND USE PLAN Chapter II: Land Use Goals/Policies (in part) 5. Residential 5.1 Additional residential growth should continue to occur primarily in existing, platted areas and as appropriate in new areas where high hazards do not exist. 5.2 Quality time share units should be accommodated to help keep occupancy rates up. 5.3 Affordable employee housing should be made available through private efforts, assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 9 5.4 Residential growth should keep pace with the market place demands for a full range of housing types, 5.5 The existing employee housing base should be preserved and upgraded. Additional employee housing needs should be accommodated at varied sites throughout the community. VAIL VILLAGE MASTER PLAN Chapter V: Goals, Objectives, Policies and Action Steps (in part) Goal #2: To foster a strong tourist industry and promote year-around economic health and viability for the village and for the community as a whole. 2.6 Objective: Encourage the development of affordable housing units through the efforts of the private sector. 2.6.1 Policy: Employee housing; units may be required as part of any new or redevelopment project requesting density over that allowed by existing zoning. 2.6.2 Policy: Employee housing, shall be developed with appropriate restrictions so as to insure their availability and affordability to the local work force. 2.6,3 Policy: The Town of Vail may facilitate -in the development of affordable housing by providing limited assistance. LIONSHEAD REDEVLOPMENT MASTER PLAN Chapter 4: Master Plan Recommendation - Overall Study Area 4.8 Parking 4.8.4 Parking for Employee Housing The unit-to-parking space ratio for employee housing should be reduced to maximize the housing opportunities in west Lionshead. During the master planning process, the Vail Town Council toured several employee housing complexes in Keystone Resort that averaged .25 cars per bed (one parking space per four-bed unit). Most of these complexes at Keystone are removed from the core and depend on a bus transit system to carry employees to and from work. Yet, Keystone property managers have not observed a parking shortage. Likewise, at the Rivers Edge employee housing project in Avon, a parking ratio of. 75 cars per bed has been more than adequate and the parking lot is underutilized. 10 4.9 Housing Recent community surveys and grass-roots planning efforts such as Vail Tomorrow have identified the lack of locals housing as the most critical _ issue facing the Vail community. Early in the Lionshead master planning process, west Lionshead was identified as an opportunity area to implement some of the community's housing goals, particularly relating to employee housing. These opportunities and associated issues are outlined below. 4.9.1 No Net Loss of Employee Housing Ground rule number five of the master plan states that there shall be no net loss of employee housing in Lionshead as redevelopment occurs. Visual Issues 4.9.2 The financial realities of affordable housing often require cost reducing measures, generally involving the quality of detailing, planning, and architectural design. Given the strong desire to make these housing projects feasible, it is recommended that some latitude be granted to affordable housing developers. However, it is also important that financial realities not be used as an excuse to produce unsightly, poorly designed, substandard products. Employee housing. does not need to match the architectural sophistication of a five star resort development, but it does need to be good quality construction and design. Rivers Edge in Avon is a good example of an attractive yet affordable employee housing project. 4.9.3 Policy Based Housing Opportunities The first means of implementing housing goals in Lionshead is through policy based requirements such as the employee generation ordinance currently being pursued by the Vail Town. Council. As required by a future ordinance, all development and redevelopment projects, as a prerequisite to project approval, should provide housing for employees generated and to the extent possible this housing should be located in the Lionshead area. VAIL 20/20 STRATEGIC PLAN Executive Summary (in part) Housing: The high cost of housing and a lack of developable land continue to challenge the community in providing adequate workforce housing. Opportunities exist to increase the amount of employee housing through redevelopment of existing housing, the purchase of deed-restricted units and through developer requirements. During 20120, participants placed workforce housing as a top priority for the community and government leaders to address. Community Values (in part) Diversity. Vail values maintaining a diverse population of residents, workers and visitors, with a broad representation of age, family composition, ethnic background and economic means. 11 Land Use and Development (in part) 20/20 Vision: The pedestrian ambiance and scale of Vail Village and Lionshead continues into 2020, where the European alpine charm of Vail is replicated in its new development. The unique character of Vail is evident from the Tyrolean building style that speaks of Vail's history, to the mountain contemporary style that heralds technological advancement. The vibrant mixed-use pedestrian core areas of Vail attract guests, residents and businesses. The diversity of businesses within the core areas provides something for everyone and the new affordable housing options are seamlessly. integrated into the community's fabric. Growth has been carefully . managed to be sustainable and complementary to the natural environment. 20120 Implementation:. Based on input from the community during the 20120 process, town staff developed the following goals and action strategies to support the land use and development vision. The goals also reflect the common themes heard from the community during the 20120 process, including a need for more employee housing, increased environmental sustainability, reduction of 1-70 impacts and managed growth. Goal #4: Provide for enough deed-restricted housing for at least 30 percent of the workforce through policies, regulations and publicly initiated development. Actions/Strategies • Update housing regulations to include more zone districts that are required to provide employee housing. • Redevelop Timber Ridge to increase number of employee beds. • Use employee housing fund for buy-downs and other programs that will increase the number of employees living within the town. • Address the zoning regulations to provide more incentives for developers to build employee housing units. Housing (in part) 20120 Vision: The number of employees living within the town has steadily increased, thanks to the town's commitment to ensure affordability and availability of housing. The number of deed-restricted rental and for- sale units required of both private and public projects has increased. The diversity of deed-restricted units can accommodate the seasonal worker, as well as all levels of year-round employees, including those with families.) Housing in general has been transformed to include green building standards. 12 20120 Implementation: Based on input from the community during the 20120 process, town staff with the Vail Local Housing Authority, developed the following goals and action strategies to support the housing vision. Goal. The Town of Vail recognizes the need for housing as infrastructure that promotes community, reduces transit needs and keeps more employees living in the town, and will provide for enough deed-restricted housing for at least 30 percent of the workforce through policies, regulations and publicly initiated development. Actions/Strategies: • Research and propose next steps for strengthening the town's inclusionary zoning and commercial linkage policies, including requirements for more zone districts. • Research parking requirements for employee housing and consider reducing requirements for employee housing developments. • . Ensure pay-in-lieu funds generate as many workforce housing units as possible. • Establish protocol for disbursement of dedicated housing fund resources. • Research and secure potential alternative (besides pay-in-lieu) funding sources for employee housing. EAGLE COUNTY HOUSING NEEDS ASSESSMENT. 2007 (see Attachment C) SECTION 8 - HOUSING NEEDS AND GAPS Keep Up Needs Housing Demand from Job Growth - According to employment forecasts developed by the Colorado Department of Local Affairs, Eagle County will have a net gain of over 4,400 jobs in the next three years and. approximately 10,300 additional jobs by 2015. Job growth in Eagle County will be the result of, expansion by existing employers, new residential development and new commerciallndustrial development. Of employers surveyed, 41 percent indicated they plan a net increase in jobs in the next two years. Given employment growth over the seven-year period between 2000 and 2007 of 7,222 jobs (1,032 per year), the estimated increase of 10, 316 jobs in the eight years between now and 2015 (1, 290 per year) may be slightly over stated. The 4,776 additional housing units needed to accommodate new jobs by 2015 should, therefore, be viewed as the maximum number likely to be needed solely to support employment growth. 13 Ga,os There is a significant gap between the current demand (catch-up) units and the number of units available as of April, 2007. The difference of 3,398 units between current demand for 4,446 units ' and current listings of 1,048 units represents the magnitude of the gap between what residents and in-commuting employees want for housing and what the free market is providing. The difference for each AMI category represents the net demand between what residents and in-commuters can afford and the free market price of units. The gap is largest in the 81 to 120 percent AMI range. Since federal and state housing programs only serve households With incomes equal to or less than 80 percent AMI (Low Income Housing Tax Credits and several grant programs have even lower income eligibility standards) addressing the gap in the 81 to 120 percent AMI range will require partnering with private developers and other local solutions that do not rely on funding from outside of Eagle County. Proportionately, households with incomes greater than 140 percent AMI are the best served by the free market, with units available to meet approximately 64 percent of current demand. These figures are dynamic, additional units will be placed on the market during 2007 that will slightly lower the gap. With 88 percent of the current listings affordable only for households with incomes greater than 140 percent AMI, the change should not significantly impact planning for solutions to address catch-up demand. EAGLE COUNTY HOUSING NEEDS ASSESSMENT. 1999 (see Attachment D) Section 9: Conclusions and Recommendations (in part) • Develop county-wide commercial linkage and inclusionary zoning programs. Requiring employers to provide housing for employees is supported by nearly 70% of the county's residents. Well over half support requiring that a percentage of all new homes be designated for employee housing. Develop affordable housing throughout the county except for seasonal workers, whose housing should be concentrated in Vail. VI. REVIEW CRITERIA 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and These regulations were adopted in April, 2007, and mitigation was intended to provide developers with prescribed employee housing mitigation requirements. As implementation of the requirements has 14 occurred, it appears there is a need to clarify requisite Employee Housing Plan expectations to achieve desired outcomes as well as better define certain aspects contained within the regulations. Staff believes the proposed text amendments clarify the existing regulations and will continue to further the general and specific purposes of Title 12, Zoning Regulations, and Chapters 12-23, Commercial Linkage and 12-24, Inclusionary Zoning. Staff believes the proposed text amendments are consistent with the Zoning Regulation's ' general purpose "to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. " Staff believes the proposed text amendments are consistent with the Zoning Regulation's specific purposes: "3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent 'with municipal development objectives. 11. To otherwise provide for the growth of an orderly and viable community. " Staff also believes the proposed text amendments are consistent with the purposes of the Employee Housing, Commercial Linkage, and Inclusionary Zoning chapters of the Zoning Regulations that state: "12-13-1: Purpose: The town's economy is largely tourist based and the health of this economy is premised on exemplary service for Vail's guests. Vail's ability to provide such service is dependent upon a strong, high quality and consistently available work force. To achieve such a work force, the community must work to provide quality living and working conditions. Availability and affordability of housing plays a critical role in creating quality living and working conditions for the community's work force. The town recognizes a permanent, year round population plays an important role in sustaining a healthy, viable community. Further, the town recognizes its role in conjunction with the private sector in ensuring housing is available." 15 "12-23-1: Purpose and Applicability. 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." "12-24-1: Purpose and Applicability. 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. " 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and As Commercial Linkage and Inclusionary Zoning only address a small percentage of net new employees generated by new development and redevelopment it is imperative that each development mitigate a portion of its own employee housing requirements on-site. Looking into the future there will be no alternatives to providing employee housing within the Town of Vail. As Staff began to analyze the five approved mitigation methods to understand what modifications may be required to "equalize" the value of each of the mitigation methods it became apparent that if the community preferred on-site mitigation this was only going to be achieved by requiring on-site mitigation. Initially Staff looked at small incremental increases to each of the methods in order to create parity. Through analysis it became apparent that ensuring on-site is the preferred mitigation method and on-par with fee-in-lieu or other mitigation methods, dramatic changes would be necessary and would likely still not create the desired on-site mitigation outcome. A copy of this analysis has been attached for reference (Attachment B). In order to ensure on-site mitigation, the draft Ordinance reflects the policy direction of the Housing Authority and the Commission that no less than one-half (1/2) of the required mitigation.be provided on-site for new construction and demo-rebuilds. The draft Ordinance also weights the remaining methods of mitigation to further incent on-site employee housing mitigation. To address developer's concerns about predictability, the proposed amendments provide developers with the most predictable employee housing review process possible. It clearly identifies and requires the community's most valued employee housing mitigation method while allowing relief from the requirement if: 16 It would be contrary to the intent and purpose of the applicable zone district; It would be contrary to the goals of the applicable elements of the Vail Comprehensive Plan and the Town's development objectives; or There are unique conditions or circumstances that exist on the site or structure. Codifying this specific on-site requirement creates a clear understanding for developers of the Town's goals and expectations related to employee housing mitigation. This specific requirement is also the most effective and efficient means available to the Town to achieve its stated goal of creating on-site employee housing mitigation units. Based upon Staff's analysis comparing the various available mitigation methods (see Attachment B), it does not appear that "weighting" the various methods can effectively ensure developer will choose to construct on-site units as desired by the Town. Given the assumptions in the analysis, off-site mitigation would need to be weighted by increasing the mitigation rate to more than 100% of the net new employees to effectively incentivise developers to construct on-site units. Such a requirement would be considered illegal, since mitigation can not be required for more than any net new impact. Additionally, a solely incentive based regulation would not provide developers with clear expectations related to employee housing mitigation requirements. To address the Commission's request for flexibility, a finding is proposed to provide a developer relief from the on-site unit mitigation requirement. • That the method of mitigation proposed better achieves the intent of this Chapter than the on-site mitigation method. Current employee housing regulations include two substantial bonuses to developers for constructing on-site EHUs: EHUs are excluded from the calculation of density (i.e. the maximum allowable number of units per acre) EHUs are excluded from the calculation of GRFA (i.e. the maximum allowable floor area) The Commission has requested additional incentives be provided including: building bulk/mass incentives (i.e. increase in building height) reductions in setbacks, increases in site coverage, etc. will conflict with the Town's adopted master plans and the purposes of many zone districts. Staff believes allowing variations to the Town's adopted parking .standards for on-site EHUs will create substantial incentives for developers to provide on-site employee housing units. A reduction in the 17 required parking for an on-site EHU is also consistent with the recommendations of the Lionshead Redevelopment Master Plan. The following is a list of additional incentive options for consideration; however, Staff does not believe any of these options will have a significant affect upon a developer's decision to construct on-site EHUs. • Waivers of building permit fees related to on-site employee housing units. . • Rebate of the Construction Use Tax related to the construction of on-site employee housing units. • Rebate of Planning Fees related to a development project that provides on-site employee housing units. • Waivers of the Recreation Fees related to on-site employee housing units. • Waivers of the Traffic Impact Fees generated by the on-site employee housing units. Staff believes the proposed text amendments would better implement and better achieve the following adopted goals, objectives and policies of the Vail Land Use Plan: "5.1 Additional residential growth should continue to occur primarily in existing, platted areas and as appropriate in new areas where high hazards do not exist. 5.3 Affordable employee housing should be made available through private efforts, assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 5.4 Residential growth should keep pace with the market place demands for a full range of housing types. 5.5 The existing employee housing base should be preserved and upgraded. Additional employee housing needs should be accommodated at varied sites throughout the community." Staff believes the proposed text amendments would better implement and better achieve the following adopted goals, objectives and policies of the Vail Village Master Plan: "Goal #2: To foster a strong tourist industry and promote year- around economic health and viability for the village and for the community as a whole. " '26 Objective: Encourage the development of affordable housing units through the efforts of the private sector. 18 2.6.1 Policy. Employee housing, units may be required as part of any new or redevelopment project requesting density over that allowed by existing zoning. 2.6.2 Policy. Employee housing, shall be developed with appropriate restrictions so as to insure their availability and affordability to the local work force. 2.6.3 Policy. The Town of Vail may facilitate in the development of affordable housing by providing limited assistance." Staff believes the proposed text amendments would better implement and better achieve the following adopted goals, objectives and policies of the Lionshead Redevelopment Master Plan: "4.1 Housing Recent community surveys and grass-roots planning efforts such as Vail Tomorrow have identified the lack of locals housing as the most critical issue facing the Vail community. 4.8.4 Parking for Employee Housing The unit-to-parking space ratio for employee housing should be reduced to maximize the housing opportunities in west Lionshead. During the master planning process, the Vail Town Council toured several employee housing complexes in Keystone Resort that averaged .25 cars per bed (one parking space per four-bed unit). Most of these complexes at Keystone are removed from the core and depend on a bus transit system to carry employees to and from work. Yet, Keystone property managers have not observed a parking shortage. Likewise, at the Rivers Edge employee housing project in Avon, a parking ratio of .75 cars per bed has been more than adequate and the parking lot is underutilized. 4.9.3 Policy Based Housing Opportunities The first means of implementing housing goals in Lionshead is through policy based requirements such as the employee generation ordinance currently being pursued by the Vail Town Council. As required by a future ordinance, all development and redevelopment projects, as a prerequisite to project approval, should provide housing for employees generated and to the extent possible this housing should be located in the Lionshead area." Staff believes the proposed text amendments would better implement and better achieve the following adopted goals, objectives and policies of the Vail 20/20 Strategic Plan: 19 "Land Use Goal #4: Provide for enough deed-restricted housing for at least 30 percent of the workforce through policies, regulations and publicly initiated development. Actions/Strategies • Update housing regulations to include more zone districts that are required to provide employee housing. • Redevelop Timber Ridge to increase number of employee beds. • Use employee housing fund for buy-downs and other programs that will increase the number of employees living within the town. • Address the zoning regulations to provide more incentives for developers to build employee housing units. " "Housing Goal. The Town of Vail recognizes the need for housing as infrastructure that promotes community, reduces transit needs and keeps more employees living in the town, and will provide for enough deed-restricted housing for at least 30 percent of the workforce through policies, regulations and publicly initiated development. Actions/Strategies: • Research and propose next steps for strengthening the town's inclusionary zoning and commercial linkage policies, including requirements for more zone districts. " Staff believes the proposed text amendments would better implement and better achieve the following adopted goals, objectives and policies of the Eagle County Housing Needs Assessment: "Develop county-wide commercial linkage and inclusionary zoning programs. Requiring employers to provide housing for employees is supported by nearly 70% of the county's residents. Well over half support requiring that a percentage of all new homes be designated for employee housing. Develop affordable housing throughout the county except for seasonal workers, whose housing should be concentrated in Vail." 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and Staff believes the proposed text amendments are a response to the actual implementation of new regulations adopted in April, 2007. These regulations allow developers full discretion to choose which existing employee housing mitigation works best to their advantage. However, the results of these existing regulations are not achieving the Town's 20 stated goals and priorities of creating additional on-site units. A system of incentives, or disincentives, has been created to encourage the construction of more on-site units. This approach further complicates the Commercial Linkage and Inclusionary Zoning regulations and still does not ensure the community will achieve its housing goals. Therefore, the Housing Authority's recommendation that half the employee housing mitigation requirement be provided on-site has been incorporated into the draft Ordinance. Staff believes the proposed text amendments are necessary to more clearly state the community's goal of creating on-site employee housing and are necessary to achieve this goal in a simple and direct manner. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives. Employee Housing Units are allowed in 23 of the Town's 26 zone districts. They are only prohibited in Heavy Service (the three existing gas station sites) and two of the open space districts (Natural Area Preservation District and Outdoor Recreation District). As.permitted or conditional uses, the construction of Employee Housing Units in these 23 zone districts is encouraged and is inherently consistent with the Town's development objectives. As described in criteria #1 and #2 above; employee housing requirements in general and employee housing regulations specifically related to on- site units are consistent with the goals and objectives of the Town's Zoning Regulations, Land Use Plan, Vail. Village Master Plan, Lionshead Redevelopment Master Plan, 20/20 Strategic Plan, and the Eagle County Housing Needs Assessment. Staff believes the proposed text amendments will continue to facilitate and provide a harmonious, convenient, workable relationship among land use regulations that are consistent with the Town of Vail master plans and development objectives. 5: Such other factors and criteria the Commission and/or Council deem applicable to the proposed text amendment. Staff has modified the draft Ordinance since the Commission's last public hearing on February 25, 2008, to reflect input from the Housing Authority, the Commission, and Staff. 21 VII. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval of the text amendments outlined in the attached Draft Ordinance No. 1, Series of 2008. Should the Planning and Environmental Commission choose to recommend approval of this request; Staff recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval of prescribed regulation amendments to Chapters 12-13, Employee housing, 12-23, Commercial Linkage and 12- 24, Inclusionary Zoning, Vail Town Code, to establish standards and criteria related to mitigating employee housing requirements, and setting forth details in regard thereto." Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission makes the following findings: "Based upon the review of the criteria outlined in Section Vl of Staffs March 10, 2008, memorandum and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12-1-2, Purpose, Vail Town Code; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." VIII. ATTACHMENTS A. Draft. Ordinance No. 1, Series of 2008 B. Mitigation Methods Analysis 22 Vail Town Council Attachment: E DRAFT Planning and Environmental Commission Public Hearing Minutes (excerpt) March 10, 2008 3. A request for a final recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendment, Vail Town Code, for a prescribed regulations amendment to Chapters 12-23, Commercial Linkage and 12-24, Inclusionary Zoning, Vail Town Code, to establish standards and criteria related to mitigating employee housing requirements, and setting forth details in regard thereto. (PEC070075) Applicant: Town of Vail Staff/Planner: Nina Timm and Bill Gibson ACTION: Approve MOTION: Kjesbo SECOND: Kurz VOTE: 4-3-0 (Gunion, Proper, Viele Opposed) CONDITION(S): Bill Gibson made an introduction to Staff's memorandum, the proposed recommendations, and the draft ordinance. Nina Timm, Housing Coordinator, made'a detailed presentation based upon Staff's memorandum. She described the direction given by the Commission to included "weighted" mitigation methods to incent on-site employee housing mitigation. She also described Staff's response to that direction and the recommendation of the Vail Local Housing Authority. Commissioner Gunion asked for clarification whether off-site units must be located within the Town of Vail. Nina Timm responded that all off-site units.must be located within the Town of Vail. Commissioner Viele asked for clarification regarding the changes (percentage increase) being proposed for Commercial Linkage mitigation amount. He specifically asked if the change was equal to 2.5 times today's mitigation. He asked for clarification regarding the increases to Inclusionary Zoning mitigation amounts in regards to the proposed "weighted" mitigation methods. Nina Timm and Bill Gibson stated a 15% increase is proposed, over today's standard. They clarified that this equates to a total increase of 150% for fee-in-lieu under inclusionary zoning regulations. Commissioner Tjossem asked for clarification regarding the Commission's discretion regarding site specific housing mitigation plans, inclusive of off-site vs. on-sight mitigation methods that might be brought forward in the future. Nina Timm clarified the Commission would have the discretion to act on a case by case basis and make recommendations to the Town Council. Dominic Mauriello spoke to the proposed regulations. He expressed concerns that the proposed amendments are a "major re-write" of the legislation adopted in 2007 when the amendments were being presented as "minor revisions". He expressed concern regarding the original nexus study and the premise that mitigation rates proposed in the draft regulations were established on specific generation rates supported by the nexus study. He stated the proposed regulation will disproportionately establish a mitigation rate for Inclusionary zoning twice what was originally established by the nexus study. He urged the Commission to table the application, so the Town Council can not take action on the request. He encouraged additional public outreach, to allow ample time to further study the proposed revisions. He expressed concern that the pay-in-lieu fee increase is actually 250%; not 150% as reported by Staff. He continued by reiterating his concern regarding the magnitude of change to the required mitigation. He stated support for deed restricting off-site units (existing) within the Town, as a cost-effective alternative to regulating the provision of costly on-site mitigation. He stated that the goal should be "heads in beds", not that all mitigation options should be equally painful to developers. He voiced, concern that the proposed weighted mitigation methods would by default require 100% on-site housing. He stated that the regulation language will preclude the Commission from using discretion in evaluating a housing plan against the criteria proposed and that the Staff and Commission should consider including language that excludes not-for-profit employers from the regulations. He presented the Commission with a letter from the Vail Valley Medical Center. Finally, he stated there are no carrots (incentives) and are only sticks. Commissioner Gunion asked Staff to clarify ".11" as an employee generation rate related to residential development and Inclusionary Zoning. Nina Timm clarified. Commissioner Pierce noted the Commission did not agree with the Town Council when Inclusionary Zoning was not based upon the same nexus study as Commercial Linkage. Nina Timm noted that the adopted Inclusionary Zoning requirements were based upon the nexus, plus the secondary impacts of residential development. Jim Lamont, Vail. Homeowners Association, asked for clarification on the proposed regulations, Appendix B. He then asked for clarification regarding provisions to allow for variances to the parking standards as an incentive to facilitate the provision of employee housing on-site. Nina Timm explained Staff did revise the language to allow the Commission the discretion to allow variances to parking standards in order to facilitate on-site mitigation 2 Jim Lamont expressed concern regarding the Town's authority to preclude a developer's ability to provide housing mitigation outside the Town, while the Town has the ability to provide housing for its own employees outside of the Town. The Town will then have the ability to deny private industry to the same benefit that the Town enjoys. He believes this is a restraint of trade issue. Staff clarified payment-in-lieu as a mitigation method allows the Town Council, with recommendation from the Housing Authority, to determine where to spend any fees paid. Commissioner Kjesbo questioned Dominic Mauriello's statements regarding the costs to provide on-site housing. Dominic Mauriello reiterated his concern that the regulations, as proposed, were a "stick", not a "carrot". He continued, stating under the proposed regulation, there will be no cost effective means to deviate from providing housing on-site within a given development site. Commissioner Kjesbo noted that the Lionshead Redevelopment Master Plan recommends EHLIs be provided on-site. -Commissioner Proper stated he believed the Staff did not adhere to the direction given by the Commission to provide a framework for evaluating housing plans according to criteria and instead has fundmentally re-written the existing legislation. Commissioner Tjossem expressed concern the Staff has presented a regulation that will make the process (to evaluate housing mitigation plans) more difficult to administer. She stated that the mitigation methods should be pain-free, not equally painful. Commissioner Proper expressed his concern regarding the effect that the proposed regulation will create. Commissioner Viele stated he believes that the proposed regulation will be challenged in court and that the regulations are fundamentally a growth control mechanisms. He agrees with Mr. Mauriello's statements and suggested that the core issue is growth control via taxation on developers. He stated the issue is not about employee housing, but is rather about a tax deferred subsidy to employees. He continued by stating the more Inclusionary Zoning that is required for a particular development project, the higher the price of free-market housing needed to make up the amount of subsidy provided by the developer. He estimated that the current subsidy (burden) to developers in the Town of Vail is 15% - 20%. He agrees that the proposed regulation is a complete re-write of existing legislation without input form citizens. He expressed his extreme displeasure with the Staff's recommendations. He stated he does not believe Staff has conducted enough due diligence with regard to public outreach, interviewing the development community and analyzing the economic impacts of the proposed regulation. He believes the work presented has been "done 3 in a back room" and that the proposed regulation should be opened up for public review - that the public notice requirements have been inadequate and have failed. Commissioner Tjossem asked if a work session with Town Council will be possible. George Ruther stated a work session is appropriate and that Staff would work to schedule such work session on March 18, 2008. He continued, urging the Commission to take action to forward a recommendation of approval, approval with conditions or denial of the application to the Vail Town Council. He cited Staff's record of appearing before the Commission numerous times to address. the Commission's concerns and requests and to put forth revisions addressing those concerns. Commissioner Kurz stated he believes Staff has presented exactly what the Commission had asked for previously. Additionally, this is a community based recommendation. He urged his fellow Commissioners to act on the application, not to table. Commissioner Proper disagreed with Commissioner Kurz, stating he believes that Town Staff has taken it upon themselves to re-write the regulation. Commissioner Viele agreed. Chairman Pierce did acknowledge the public should be involved in such revisions to a "major piece of legislation", however he also expressed comfort with the Commission's charge to act on such applications given adequate public notice and that the Town Council will ultimately decide on the matter, as a community issue. Commissioner Viele stated he agrees that employee housing is a community issue. Commissioner Gunion stated the Inclusionary Zoning regulation should be tied to the nexus study. She expressed concern regarding the proposed mitigation rates in relation to the original nexus study; that the proposed numbers are disproportionate to the mitigation required of new residential developments to "make up for the sins of our fathers". She clarified the proposed regulation (and numbers/facts provided) will not achieve the original goal by the Commission to clarify the criteria for evaluating housing mitigation plans. She further expressed support for allowing' developers to provide housing outside the Town of Vail. The focus of any qualitative changes to the regulation should aim to ensure that housing is provided no matter where or how much it costs. Commissioner Kurz expressed concern regarding the convoluted nature of the discussions that have transpired. He reminded the Commission that the developers who have spoken asked for clear expectations and stated "if I know the requirements, I can solve for them." He expressed concern regarding the proposed numbers (mitigation rates) presented, yet reiterated his request for the Chairman to call the vote. Commissioner Kjesbo clarified that the Commission did ask for "the numbers" of how mitigation rates would impact a given development. He expressed concern that unless the regulation is written correctly, no on-site housing (mitigation) will occur in 4 the future and the Town will be left with a further deficit of employee housing within the Town. He expressed support to further incentivize on-site mitigation methods. Commissioner Viele asked Staff for clarification regarding the Housing Authority's recommendations. Nina Timm clarified the recommendations of the Authority. She stated the Authority's recommendations were to keep all methods of mitigation rates the same, but to require at least half of the requisite mitigation on-site. Chairman Pierce clarified the analysis provided to the Commission by Dominic Mauriello, stating that the analysis presented used different factors than are used in the existing Town of Vail nexus study an ordinances; that his analysis was essentially comparing "apples to oranges". Jim Lamont reiterated his concern regarding the proposed incentives to allow discretion (variances) in the number of parking spaces to be provided in new developments. He also expressed concern and asked for clarification regarding the possible reduction in required (minimum) square footage required per employee (bed) from 250 to 350 square feet as it related to the Timber Ridge redevelopment proposal by Lincoln Property Company. Dominic Mauriello suggested that language within the proposed regulation should be revised to clearly state "50% of required mitigation has to be mitigated on site"; "the remaining 50% is (expressly) at the discretion of the developer to provide - either within or outside the Town". Chairman Pierce reiterated the goals of the regulations have been to ensure and encourage housing the Town's workforce within the Town. Nina Timm reminded the Commission that an express goal of the Town is to ensure that 30% of employee housing is provided within the Town of Vail. George Ruher.requested the Commission take action to forward a recommendation for approval, approval with conditions, or denial of the application to the Vail Town Council. He offered to schedule a work session between the Planning and Environmental Commission and the Council on March 18, 2008. Commissioner Proper stated he feels the existing legislation is relatively untested and that changing the regulations is pre-mature. He feels the proposed 50% requirement for on-site units is unjustified. Commissioner Kurz asked for clarification from Staff regarding establishing a 50% goal or mitigation rate. Nina Timm reported that Staff had discussed the proposed figure (50%) and did certain feasibility analyses, applying a 50% mitigation rate to existing projects such as Arrabelle to "test" the figure. She reiterated the Housing Authority had reviewed the proposed regulation and had rendered recommendations. ' 5 Commissioner Proper questioned Staff further regarding the actual source of Staff's recommended figure of 50%. Dominic Mauriello stated that he did his own investigation, speaking to the same developers, employers and or employees that Staff interviewed. He disagrees with Staff's estimates on the number of employees to be generated by a given employer. He feels that Staff's proposed numbers (employee generation rates) are not accurate. Chairman Pierce called for the Commission to vote on the application as presented. Commissioner Kjesbo made a motion to approve the regulation, with the following changes that at least half the mitigation be met with on-site units with discretion given to developer to use any of the methods for the remainder. Commissioner Kurz seconded the motion and asked for clarification regarding the motion to revise the existing regulation to require 50% of the required mitigation on- site, and to allow 50% of the required mitigation to be provided off-site. Specifically, he asked if Commissioner Kjesbo intended to limit the 50% off-site mitigation to those areas within the Town boundaries. Commissioner Kjesbo affirmed that any off-site mitigation should be provided within the Town's boundaries. George Ruther reviewed the changes proposed by the Commission and clarified, from Staff's perspective that the only proposed amendment to the existing regulations was to further regulate that 50% of any required mitigation be provided on site; that no criteria (as previously asked for by the Commission) are being proposed or acted upon at this time. Commissioner Proper stated that the motion was ridiculous. Commissioner Viele stated that the motion was arbitrary and presupposes the Town's knowledge. The proposal is onerous and unacceptable. Bill Gibson asked the Commission for clarification regarding proposed revisions made: on Page 47, Commercial Linkage - strikeout language regarding the weighted methods of mitigation. The examples will be modified to reflect the proposed changes. He also confirmed that the Commission supported the remaining "clean-up" amendments to the Town Code, Dominic Mauriello suggested changes to square footage requirements for Type III EHUs. Bill Gibson clarified that no changes were necessary for Type III EHUs, since new Type VII EHUs were being created to explicitly address Inclusionary Zoning and Commercial Linkage. 6 Commissioner Viele stated that the record should show that the reason any modification was made was due to the fact that the Commission found the proposal to be unacceptable; amendments to ensure that 50% of mitigation was provided on- site were included in the motion as a compromise to keep the regulation (review) moving forward. 7 Appeal for Rucksack Condominimums (aka. Bridge Street Building) -Major Exterior Alteration (PEC070076/DRB070709) to be tabled to the regular meeting of April 1, 2008 at the request of the Appellant. First Reading of Ordinance No. 5, Series of 2008, an ordinance approving a major amendment to Special Development District No. 4, Cascade Village, to allow for the development of the Cornerstone Site (PEC070055), to be tabled to the regular meeting of April 1, 2008 at the request of the applicant. Y MEMORANDUM TO: Town Council FROM: Community Development Department DATE: March 18, 2008 SUBJECT: Ordinance No. 4, Series of 2008, an ordinance amending Section 12-14-20, Commercial Core Construction, Vail Town Code, to allow for the extension of the commercial core temporary construction signage for businesses and setting forth details in regard thereto. Applicant: Town of Vail Planner: Bill Gibson DESCRIPTION OF THE REQUEST The applicant, Town of Vail, is requesting a second reading of Ordinance No. 4, Series of 2008, for proposed text amendments to Section 12-14-20, Commercial Core Construction, Vail Town Code, to allow for the extension of the commercial core temporary construction signage for businesses and setting forth details in regard thereto. BACKGROUND On May 3, 2005, the Town Council adopted Section 12-14-20, Commercial Core Construction, Vail Town Code, through Ordinance No. 10, Series of 2005. These regulations facilitated the installation of temporary construction mitigation signs and fencing within the Town's commercial areas to lessen the impact of redevelopment construction on the Town's businesses, residents, and guests. These regulations are scheduled to expire on April 1, 2008. On February 25, 2008, the Planning and Environmental Commission voted 7-0-0 to forward a recommendation of approval for text amendments to extend the approval of the Commercial Core Construction regulations until 2010. On March 4, 2008, the Town Council approved Ordinance No. 4, Series of 2008, on first reading by a vote of 6-0-0. CRITERIA FOR REVIEW The criteria outlined in Section V of Staff's February 25, 2008, memorandum to the Planning and Environmental Commission shall be used as the principal criteria in evaluating the merits of the proposed special development district. IV. STAFF RECOMMENDATION The Community Development Department recommends the Town Council approves Ordinance No. 4, Series of 2008, on second reading to amend Section 12-14-20, Commercial Core Construction, Vail Town Code, to allow for the extension of the commercial core temporary construction signage for businesses and setting forth details in regard thereto. Should the Town Council choose to approve these text amendments, the Community Development Department recommends the Town Council pass the following motion: "The Town Council approves, on second reading, Ordinance No. 4, Series of 2008, an ordinance amending Section 12-14-20, Commercial Core Construction, Vail Town Code, to allow for the extension of the commercial core temporary construction signage for businesses and setting forth details in regard thereto." Should the Town Council choose to approve Ordinance No. 4, Series of 2008, on first reading, the Community Development Department recommends the Town Council makes the following findings: "1. That the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, based upon Section V of the Staff memorandum dated February 25, 2008, and the evidence and testimony presented; and, 2. That the amendments further the general and specific purposes of Zoning Regulations, based upon Section V of the Staff memorandum dated February 25, 2008, and the evidence and testimony presented; and, 3. That the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality, based upon Section V of the Staff memorandum dated February 25, 2008, and the evidence and testimony presented. " V ATTACHMENTS Attachment A: Ordinance No. 4, Series of 2008 2 I Attachment A ORDINANCE NO. 4 SERIES OF 2008 AN ORDINANCE AMENDING SECTION 12-14-20, COMMERCIAL CORE CONSTRUCTION, VAIL TOWN CODE, TO ALLOW FOR THE EXTENSION OF THE COMMERCIAL CORE TEMPORARY CONSTRUCTION SIGNAGE FOR BUSINESSES AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, significant redevelopment construction is proposed and already occurring within the Town of Vail has many physical and economic impacts on the Town's businesses, guests and residents; and, WHEREAS, the Town Council wishes to minimize the negative impacts of this unprecedented volume of construction activities on the Town's businesses, guests and residents; and, WHEREAS, on February 25, 2008, the Planning and Environmental Commission of the Town of Vail held a public hearing and reviewed and forwarded a recommendation of approval for 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; and, WHEREAS, the Town Council finds and determines that the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, based upon Section V of the Staff memorandum to the Planning and Environmental Commission dated February 25, 2008, and the evidence and testimony presented; and, WHEREAS, the Town Council finds and determines that the amendments further the general and specific purposes of the Zoning Regulations, based upon Section V of the Staff memorandum to the Planning and Environmental Commission dated February 25, 2008, and the evidence and testimony presented; and, WHEREAS, the Town Council finds and determines that the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality, based upon Section V of the Staff memorandum dated February 25, 2008; and, WHEREAS, the Town Council finds and determines that the public health, safety, and welfare will be served by these adopting regulations, based upon Section V of the Staff memorandum to the Planning and Environmental Commission dated February 25, 2008, and the evidence and testimony presented. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: 3 Section 1. Subsection 12-14-20C, the Vail Town Code is hereby amended as follows (text to be deleted is in , text that is to be added is bold, sections of text that are not amended have been omitted.) C. Termination of Section: The authority granted pursuant to this section shall terminate on April 1, 2-W8 2010, unless sooner extended or terminated by separate ordinance of the council. Section 2. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 3. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 4. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 5. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 4th day of March, 2008, and a public hearing for second reading of this Ordinance set for the 18th day of March, 2008, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Richard D. Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 18th day of March, 2008. Richard D. Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk 5 r I= ox MEMORANDUM TO: Town Council FROM: Matt Mire, Town Attorney DATE: March 13, 2008 SUBJECT: Timber Ridge Redevelopment Proposal dated January 15, 2008 Attached for your consideration on Tuesday evening is a document entitled "TIMBER RIDGE OPEN HOSPITALITY AND LINCOLN PROPERTY COMPANY SOUTHWEST POSITION ON ISSUES RAISED BY THE TOWN OF VAIL REGARDING THE PROPOSED LETTER OF INTENT DATED JANUARY 15,2008." 1 TIMBER RIDGE OPEN HOSPITALITY AND LINCOLN PROPERTY COMPANY SOUTHWEST POSITION ON ISSUES RAISED BY THE TOWN OF VAIL REGARDING THE PROPOSED LETTER OF INTENT DATED JANUARY 15, 2008 1. Ownership Structure/Upside Participation To avoid the Colorado Constitution's prohibition on municipalities entering into joint ventures and partnerships with private entities, the proposal is that the Town of Vail will have an upside participation as part of the consideration for the sale of the 6.2 acres. If the redeveloped Timber Ridge is sold, the Town of Vail will participate and receive five percent (5%) on the amount the developer/investor receives above a thirty percent (30%) IRR. Said IR.R will be calculated on a formula that the developer/investor will capitalize the project on seventy-five percent (75%) debt, twenty- five percent (25%) equity basis. The Town of Vail shall not be entitled to have or exercise any control over the development or any sale of the development, except that which it has by virtue of its regulatory and approval authority. 2. Form of Agreement Town. The form of agreement will be a development agreement, as requested by the 3. Earnest Monev Upon execution of the development agreement, Developer will deposit seventy five thousand dollars ($75,000) with the title company. This deposit is refundable if Developer does not proceed at the expiration of the Feasibility Period. If, at the expiration of the Feasibility Period, Developer decides to continue with the transaction, it will deposit or cause to be deposited an additional seventy five thousand dollars ($75,000) with the title company. The earnest money deposit will be credited against the purchase price at closing. If the Town of Vail does not approve all needed entitlements, plans and permits, all of the earnest money will be refunded. 4. Seauence of Closina The Developer agrees to close within 30 days 1) after the property has been rezoned to an acceptable zoning in Buyer's sole discretion, 2) after any other needed entitlements, building permit or permits and any other approvals to develop the project as designed are received which are acceptable to the Developer, and 3) after all of the existing units have been vacated or April 1, 2009. . E0E.OvW\ MAR 13 SOS 5. Interior Design / Unit configuration The current plan is to build approximately 316 units on approximately 6.5 acres. Developer and the Town have agreed on a minimum of 250 square feet per employee bed in each unit. Additionally, Developer will study the mix of unit types to determine the economic viability of the creating unit types beyond the 4 bedrooms, two bathroom units (dorm style) currently designed. 6. Feasibilitv Period The Feasibility Period, including the due diligence period, will be one hundred eighty (180) days from the execution of the development agreement or receipt of the documents to be provided by the Town, whichever is later. Developer will provide the Town Council and Town Staff monthly,updates during this period so that progress can be monitored. 7. Content of the Deed Restriction & Assignability The language of the deed restriction shall be that in the Town's ordinance related to workforce housing, except that the definition of "employee housing unit" in Section 12-2-2 of the Town Code should permit employees who work seasonally and not year round. Pursuant to the March 4, 2008 council meeting, Developer shall be entitled to have twenty-five percent (25%) of the total beds be market-rate rental units or for sales condos. If Developer elects to sell any as condos, said purchaser can apply the deed restriction to any required pillow that purchaser may require pursuant to the Towns inclusionary zoning laws. Six hundred of the beds are deemed to be replacement units for existing workforce beds at Timber Ridge. All other units will be counted as new workforce deed restricted units. 8. Pro Forma Dates Commencement of construction would be April 2009 and completion of construction is scheduled for January 2011. Developer is scheduled to begin delivering units beginning in July, 2010 and therefore a large percentage of the units should be available for work force housing prior to the opening of the 2010 / 2011 ski season. 9. Exemption from Sales and Use Tax Developer is requesting that the construction and furnishing of the project would be exempt from sales and use tax. 10. Purchase vs. Lease As previously discussed, Developer is only interested in a purchase of the property. 2 r 11. Phasing Developer recognizes that phasing is a critical issue. Enabling as many units to remain open during the development is essential to the Town and to Vail Resorts. Upon approval from the Town to move forward on this project, Developer will immediately begin working with the Town Staff to insure the most expeditious and least disruptive phasing process. 13. Rent Increases Developer does not want to put a cap on annual rental incomes for the following reasons. The Town of Vail will be a profit participant. In the event of a sale, the Town will participate and receive five percent (5%) on the amount the Developer / Investor receives above a thirty percent (30%) IRR. The IRR will be calculated on a formula that the Developer / Investor will capitalize the project on seventy-five percent (75%) debt, twenty-five (25%) equity basis. 2. The project will be 100% deed restricted workforce housing subject to Paragraph 7. The Deed Restriction provides the Town with its goal of work force housing. 3. Developer will attempt to have approximately 70% of this project master leased to major employers. These master leases will already have annual rental increase caps. The potential upside is in the . remaining 30%. Developer is responsible for all of the downside risk (construction risk, financing risk, lease up risk, personal guarantee's, etc, etc). Our financial partner is not willing to accept all the downside risk with a cap on any of the upside. 14. Guarantee's Developer will provide a Completion Guarantee to its Senior Lender. 3 L.35 a";.1$ -o?- TOWN OF PAIL Office of the Mayor 75 South Frontage Road Vail, Colorado 81657 970-479-2106 Fax: 970-479-2157 www.vailgov.com Mr. Arn Menconi, Chairman Mr. Peter Runyon Ms. Sara Fisher Eagle County Board of Commissioners P.O. Box 850 Eagle, Colorado 81631-0850 Dear Board of Commissioners, March 18, 2008 On behalf of the citizens of Vail and the Vail Town Council, I am writing to express the belief that any renaming of the airport must include the name Vail. To do anything less risks the strides made in past years to make the airport an important part of Colorado's transportation system. For years, travelers have believed they were flying into the Vail Airport. The travel industry has not corrected this. Even the airlines do not use the official name of the airport, but show on the departing screens in originating airports that the flights are to Vail, Colorado. There is an opportunity to leverage the cache of the Vail brand by using it in the new airport name to create a sense of place and eliminate the confusion that has existed for years among travelers to our area. Most of our guests will tell their friends and family that they visited Vail, whether they stayed in Vail, Beaver Creek, Avon, Minturn, etc, on their trip to Eagle County. Vail is a highly recognized brand with our ever-increasing international guests as well. Additionally, with the dollars being spent by Vail Resorts to market the Vail brand domestically and internationally, we feel it would be a missed opportunity to name the airport any name that doesn't include Vail: The airport is currently identified as the Vail/Eagle County Regional Airport throughout the airline industry. Maybe it is time to take advantage of that moniker and officially change the airport to just that. It justly identifies the contributions the entire community has made toward the airport's growth and success. In summary, we fully support the use of the Vail name if the airport is to be renamed. We oppose any rename that does not include Vail, including the Colorado International Airport. Let's not waste past strides we have made in getting people to recognize that the Eagle County Airport is the gateway to Vail. Let's reinforce it. Sincerely, C:ZVAIL Dick Cleveland Mayor of Vail #* RECYCLEDPAPER