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HomeMy WebLinkAbout2010-08-31 Agenda and Support Documentation Town Council Special Meeting VAIL TOWN COUNCIL SPECIAL MEETING AGENDA +` TM W Via' VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 3:00 P.M., AUGUST 31, 2010 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. Public comments on work session item may be solicited by the Town Council 1. ITEM /TOPIC: A resolution authorizing the Town Manager to accept a payment in Lieu from Vail Associates Inc., in exchange for a full and final release of the skier drop -off easement recorded against the North Day Lot property legally described as Lot 1, Block 1, Vail Lionshead Third Filing, County of Eagle, State of Colorado; and setting forth details in regard thereto. (60 minutes) PRESENTER(S): Stan Zemler ACTION REQUESTED OF COUNCIL: Approve, approve with modifications or deny Resolution No. 22, Series of 2010. BACKGROUND: On June 15, 2010, at the direction of the Vail Town Council, the town staff presented a North Day Lot Skier Drop Off fee in lieu offer to Vail Resorts for consideration. The offer was made since pursuant to the Approved Development Plan for the Arrabelle at Vail Square project, the applicant, Vail Resorts is contractually obligated to provide nine (9) public skier drop off spaces within Lionshead. In accordance with the approved plans for the North Day Lot employee housing project ( "First Chair "), the applicant has agreed to construct nine (9) skier drop off spaces for public use on the west end of the development site. In addition to the skier drop off spaces, the applicant has also agreed to construct certain pedestrian improvements and amenities (ie, shelters, benches, heated walkways, etc.). STAFF RECOMMENDATION: Should the Vail Town Council choose to approve Resolution No. 22, Series of 2010, the town staff recommends that the terms of negotiations outlined in the staff memorandum be made as part of the motion. 8/31/2010 'OWN OF VAM . VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: August 31, 2010 ITEM /TOPIC: A resolution authorizing the Town Manager to accept a payment in Lieu from Vail Associates Inc., in exchange for a full and final release of the skier drop -off easement recorded against the North Day Lot property legally described as Lot 1, Block 1, Vail Lionshead Third Filing, County of Eagle, State of Colorado; and setting forth details in regard thereto. PRESENTER(S): Stan Zemler ACTION REQUESTED OF COUNCIL: Approve, approve with modifications or deny Resolution No. 22, Series of 2010. BACKGROUND: On June 15, 2010, at the direction of the Vail Town Council, the town staff presented a North Day Lot Skier Drop Off fee in lieu offer to Vail Resorts for consideration. The offer was made since pursuant to the Approved Development Plan for the Arrabelle at Vail Square project, the applicant, Vail Resorts is contractually obligated to provide nine (9) public skier drop off spaces within Lionshead. In accordance with the approved plans for the North Day Lot employee housing project ( "First Chair "), the applicant has agreed to construct nine (9) skier drop off spaces for public use on the west end of the development site. In addition to the skier drop off spaces, the applicant has also agreed to construct certain pedestrian improvements and amenities (ie, shelters, benches, heated walkways, etc.). STAFF RECOMMENDATION: Should the Vail Town Council choose to approve Resolution No. 22, Series of 2010, the town staff recommends that the terms of negotiations outlined in the staff memorandum be made as part of the motion. ATTACHMENTS: Town Council Memorandum Resolution No. 22, Series of 2010 Skier Drop -off Easement 8/31/2010 Memorandum To: Vail Town Council From: Stan Zemler, Town Manager George Ruther, Director of Community Development J. Matt Mire, Town Attorney Date: August 31, 2010 Re: Resolution No. 22, Series of 2010 I. Purpose The purpose of this memorandum is to provide the Vail Town Council with the background information needed to discuss accepting a fee in lieu payment of $725,000 in exchange for the full and final release of the skier drop -off easement agreement currently recorded against the North Day Lot property. A copy of Resolution No. 22, Series of 2010 has been attached for reference. It is important to note that an approval of Resolution No. 22, Series of 2010 does not release Vail Resorts of its skier drop -off obligation. Instead, an approval allows for the Town to accept a fee in lieu payment as a means of meeting the obligation. II. Background On June 15, 2010, at the direction of the Vail Town Council, the Town Staff presented a North Day Lot Skier Drop Off fee in lieu offer to Vail Resorts for consideration. The offer was made as pursuant to the Approved Development Plan for the Arrabelle at Vail Square project, the applicant, Vail Resorts, is contractually obligated to provide nine (9) public skier drop off spaces within the Lionshead area. In accordance with the approved plans for the North Day Lot employee housing project ( "First Chair"), the applicant has agreed to construct nine (9) skier drop off spaces for public use on the west end of the development site. In addition to the skier drop off spaces, the applicant has also agreed to construct certain pedestrian improvements and amenities (ie, shelters, benches, heated walkways, etc). To effectuate the obligation, the Town and Vail Resorts have executed a Skier Drop -Off Agreement. Among other things, the Agreement establishes a public use easement on a portion of the North Day Lot and describes the terms by which the drop -off area may be used. In summary, the "drop -off use" shall mean, "the short -term and unloading of Vail Mountain skiers, snow boarders and users of other Vail Mountain recreational resources by private passenger vehicles during the Vail Mountain ski season for the periods when the ski lift is in operation (ie, generally between the hours of 7:00 am and 7:00 pm). 1 8/31/2010 1 -1 -1 A copy of the Agreement has been attached for reference. The Town of Vail is presently constructing public skier drop off improvements within Lionshead at the Lionshead Parking Structure. As part of a total $5.5 million public transit and skier drop -off improvements project, 10 -25 public skier drop off spaces will be created. The design of the spaces is such that the total number of drop -off spaces can be increased or decreased in response to user demand. A new entry portal will be constructed on the west side of the parking structure to accommodate vehicle ingress and egress. III. Why Consider a Fee in Lieu Option? The North Day Lot skier drop off location was selected based upon the best information available to the applicant and the Town at the time. At the time that the site for skier drop off was selected by the Town, other site options were not available for consideration or were discarded due to cost. Since selecting the North Day Lot site, additional options for skier drop off have been considered by the Town (ie, Lionshead Parking Structure west in /west out). The Lionshead Parking Structure site was selected for additional skier drop off due to its proximity to the Eagle Balm Gondola, ease of access, presence of existing guest amenities, proximity to public transit, improved guest experience and its ability to increase or decrease in size based upon demand. A fee in lieu option should be considered for the following reasons: • A more suitable location for skier drop off has been identified by the Town since previously approving the NDL site. • Greater utilization of the Lionshead Parking Structure site is anticipated due to the closer proximity of the structure to the core of Lionshead and the Eagle Balm Gondola. • The Lionshead Parking Structure site is in a more intuitive location for our guests and visitors. • No additional Town staffing will be required. • There is a decrease in the number of parking spaces temporarily lost in Lionshead. • The terms of the skier drop off easement agreement only permit the use of the North Day Lot for public uses during the Vail Mountain ski season. • The NDL site can be better utilized for Vail Resorts employee parking and the additional parking comes on line sooner. • The NDL site has less of an impact on the no net loss of parking policies outlined in the Lionshead Redevelopment Master Plan. • The funds resulting from the fee in lieu payment can be leveraged by the Town for the betterment of the community and our guests. • The North Day Lot is no longer the best location for public skier drop off and as such the location will be underutilized in comparison to other more suitable locations. 2 8/31/2010 1 -1 -2 IV. Terms of Negotiation The following terms of negotiations have been outlined for discussion purposes: Vail Resorts • Vail Resorts agrees to provide the Town of Vail a one time payment of $725,000. • Vail Resorts agrees to make the one time payment upon execution of any skier drop amendment agreement. • Vail Resorts agrees to construct and maintain the pedestrian improvements across the site and provide a public pedestrian access easement to the Town of Vail. Snow melt is at VR's discretion. • Vail Resorts agrees to submit a revised site plan to the Town of Vail demonstrating compliance with the Town of Vail Zoning Regulations. • Vail Resorts agrees to utilize the net new surface parking spaces (20 — 30 spaces) on the North Day Lot site for parking purposes. • Vail Resorts agrees to maintain the current approved snowmelt boiler system capacity for potential future use by the Town of Vail. • Vail Resorts agrees to negotiate in good faith as time is of the essence. Town of Vail • The Town of Vail agrees to release the public skier drop off use restriction from the North Day Lot site upon receipt of fee in lieu payment. • The Town of Vail agrees that all net new parking spaces created as a result of the new surface parking lot may be credited against the existing 318 parking space deficit. • Town of Vail agrees to negotiate in good faith as time is of the essence. 3 8/31/2010 1 -1 -3 RESOLUTION NO. 22 Series of 2010 A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A PAYMENT IN LIEU FROM VAIL ASSOCIATES, INC. IN EXCHANGE FOR A FULL AND FINAL RELEASE OF THE SHIER DROP -OFF REQUIREMENTS ASSOCIATED WITH THE NORTH DAY LOT PROPERTY; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail (the "Town "), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter; and WHEREAS, the members of the Town Council of the Town (the "Council ") have been duly elected and qualified; and WHEREAS, the Town and The Vail Corporation, dba Vail Associates, Inc. ( "VAI" ), are parties to a certain Skier Drop -off Easement Agreement (the "Easement Agreement "), recorded June 1, 2009, at Reception No. 200910491, and encumbering the property commonly known as the "North Day Lot" and legally described as Lot 1, Block 1, Vail/L,ionshead, Third Filing, County of Eagle, State of Colorado, except those portions conveyed by Deeds recorded November 3, 1972, in Book 226 at Page 32 and recorded July 11, 1983 in Book 363, at Page 341 (the "Property "); and WHEREAS, the Easement Agreement calls for VAI to provide public use of a "skier drop -off' area, i.e., a short-term vehicular loading and unloading area for drop —off use by Vail Mountain skiers, snowboarders and users of other Vail Mountain recreational resources during the Vail Mountain ski season when the ski lifts are operational, as more particularly set forth therein; and WHEREAS, the skier drop -off area is a mitigation of development impacts required of the Arrabelle at Vail Square project by the terms of the Core Site Development Agreement dated November 8, 2004 and made between the Town and Vail Associates, as amended (the "Core Site Agreement "); and WHEREAS, the Easement Agreement was specifically required as part of the Town's development approvals for a major exterior alteration constituted by the "First Chair" employee housing project being constructed on the Property, which approvals included a call -up review by the Council (the "First Chair Approvals "); and WHEREAS, since the selection of the Property for a skier drop -off area, additional options for skier drop -off have been considered by the Town, and the Town has selected the Lionshead Parking Structure as the alternative site and is proceeding to institute the skier drop - off area at that location; and 956962.3 RCFISH 08/27/10 1:09 PM 8/31/2010 1 -2 -1 WHEREAS, the Lionshead Parking Structure has been selected for skier drop -off use and development of a skier drop -off area (the " Lionshead Drop -Off Area ") due to its close proximity to the Eagle Bahn Gondola, ease of vehicular access, presence of existing guest services amenities, close proximity to public transit, and its ability to increase or decrease in size based upon user demand; and WHEREAS, the Town wishes to accept $725,000 from VAI as a payment in lieu of providing the skier drop -off area on the Property (the "Payment in Lieu "), such Payment in Lieu to be in exchange for the termination and release of the Easement Agreement, the Town's agreement that all skier drop -off requirements under the Core Site Agreement and First Chair Approvals have been satisfied, and the Town's approval of the VAI modifications to the First Chair Approvals for deleting the planned skier drop -off area and establishing alternative improvements (the "First Chair Modifications "); and WHEREAS, the Council considers it in the interests of the public health, safety and welfare of the Town and its inhabitants to accept this Payment in Lieu; and WHEREAS, the approval of this Resolution No. 22, Series of 2010, is required to authorize the exchange as described above. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: 1. The Town Manager is hereby authorized to accept, on behalf of the Town, the Payment in Lieu from VAI in exchange for the termination and release of the Easement Agreement, the Town's agreement that all skier drop -off requirements under the Core Site Agreement and First Chair Approvals have been satisfied, and the Town's approval of the First Chair Modifications. The Town Manager is further authorized and instructed to take whatever actions the Town Manager considers to be necessary or appropriate to complete the exchange, including, without limitation, the execution and delivery on behalf of the Town of such documents and instruments with such terms and provisions as the Town Manager may determine, with the Town Attorney's approval, to be acceptable and appropriate in furtherance of this Resolution (specifically including, but not limited to, an agreement governing the exchange, a termination of the Easement Agreement, and an amendment to the Core Site Agreement). The Town shall perform, observe and discharge its obligations under those documents and instruments. The Town's Director of Community Development is specifically authorized and instructed to approve the First Chair Modifications on terms and with content that the Director considers appropriate. 2. The Council hereby finds, determines and declares that this Resolution is in the interests of the public health, safety and welfare of the Town of Vail and its inhabitants. 3. This Resolution shall take effect immediately upon its passage. 956962.3 RCPISH 08/27/10 1:09 PM 2 8/31/2010 1 -2 -2 INTRODUCED, PASSED AND ADOPTED at a special meeting of the Town Council of the Town of Vail held this 31st day of August, 2010. Dick Cleveland, Mayor of the Town of Vail, Colorado ATTEST: Lorelei Donaldson, Town Clerk 956962.3 RCFISH 08/27/10 1:09 PM 3 8/31/2010 1 -2 -3 CO i C OUNTY 2009 J 104 { 91 P9s: 20 12:06:29PM �6 01! 2��J9 REC: $106.00 DOC: $ SKIER DROP -OFF EASEMENT AGREEMENT t THIS SKIER DROP -OFF EASEMENT AGREEMENT (this "Agreement ") is made by and between THE VAIL CORPORATION d/b /a VAIL ASSOCIATES, INC., a Colorado corporation ( "VAI "), whose street address is 390 Interlocken Crescent, Suite 1000, Broomfield, Colorado 80021, and the TOWN OF VAIL, a municipal corporation duly organized and existing t under and by virtue of the laws of the State of Colorado (the "Town "), whose street address is 75 South Frontage Road, Vail, Colorado 81657. A. The Town and VAI, along with the Vail Reinvestment Authority, are parties to that certain Core Site Development Agreement dated November 8, 2004, and recorded in the real property records for Eagle County, Colorado (the "Records "), on November 21, 2005, at Reception No. 937604 (the "Original Development Agreement "), as modified by an Amendment to Core Site Development Agreement dated July 19, 2005 (the "First Amendment "), made among the same parties, and recorded in the Records on November 21, 2005, at Reception No. 937605, and as further rnodifred by that certain Second Amendment to Core Site Development Agreement dated as of December 21, 2007 (the "Second Amendment ") (as so amended, the "Development Agreement "). r B. Initially capitalized terms used but not defined in or by other reference under this Agreement shall have the meanings ascribed to them under the terms of the Development Agreement. The Core Site Project is referred to in this Agreement as the " Arrabelle Project." C. VAI is the owner of certain real property in Vail, Colorado, adjacent to the Arrabelle Project, which is commonly known as the "North Day Lot," and which is legally described on the attached Exhibit A ( "North Day Lot "). VAI has completed the initial construction of the Skier Drop -Off Area in accordance with the Second Amendment, which Skier Drop -Off Area contains 9 parking spaces and is now in operational, functioning condition. Development of the balance of the North Day Lot has not yet commenced. f D. The Town has given requisite development plan approvals for developing the North Day Lot as a multi - family residential project with employee housing units, together with site and other ancillary or related improvements. Such approvals were rendered by the Town's Planning and Environmental Commission on February 9, 2009 (with modified conditions adopted by Town Council on March 3, 2009), and by the Town's Design Review Board on February 18, 2009. Such approved development plans, together with any modifications or supplements thereto given requisite Town approvals, are sometimes referred to hereinafter as the j "Approved Development Plans," and the improvements developed from time to time on the North Day Lot are sometimes referred to hereinafter as the "North Day Project." The Approved Development Plans provide for a relocation of the Skier Drop -Off Area. I E. The Town and VAI have entered into this Agreement in furtherance of implementing the use of the Skier Drop -Off Area for its intended purposes, and of integrating such use with the future North Day Lot development. j A11rr recor please return to Gerry Amold P.O. Box 939 — UC S87 Avon. Colorado 81620 ' 8/31/2010 I 1 -3 -1 I NOW, THEREFORE, in consideration of the above premises, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and VAI hereby agree as follows: i i 1. Grant of Easement (a) Skier Drop -Off Easement Subject to the terms and limitations set forth hereinafter in this Agreement, VAI hereby grants the Town an easement over, across, upon and through the Servient Estate (defined below) (the "Easement') for the following 1 purposes: (i) to use the Skier Drop -Off Area for the "Drop -Off Use" (defined below); (ii) for passenger vehicles engaged in the Drop -Off Use to employ the vehicular access ways within the North Day Lot as necessary for purposes of ingress and egress to and from the Skier Drop -Off Area; (iii) for Recreational Users (defined below) engaged in the Drop -Off Use to employ the pedestrian walkways within the North Day Lot as necessary for purposes of pedestrian ingress and egress between the Skier Drop -Off Area and the easterly boundary of the North Day Lot; and (iv) for certain maintenance functions as set forth in paragraph 6 below. Those vehicular access ways are sometimes referred to hereinafter as the "Vehicular Ways," and those pedestrian walkways are sometimes referred to hereinafter as the "Pedestrian Ways." The "Servient Estate," as that term is ! used herein, shall mean the Skier Drop -Off Area, Vehicular Ways, and Pedestrian Ways, which are initially established by their present existing configuration depicted on Exhibit B attached hereto. The Servient Estate will be subject to adjustment as hereinafter set forth. (b) Drop -Off Use The "Drop -Off Use" shall mean the short -term loading and unloading of Vail Mountain skiers, snowboarders and users of other Vail Mountain recreational resources ( "Recreational Users ") by private passenger vehicles during the I Vail Mountain ski season (i.e., the season annually during which skiing/snowboarding and related ski lift transport are offered to the public as a commercial operation) for the periods when the ski lift is in operation (the "Reserved Hours ") (i.e. generally between the hours of 7:00 AM to 7:00 PM). As part of the North Day Project, VAI will cause signage to be posted in the Skier Drop -Off Area disclosing the Reserved Hours for the Drop -Off Use, in compliance with the applicable provisions of the Vail Town Code. ' I i (c) No Use During Construction The Drop -Off Use may not be used and the Easement and its enjoyment will be suspended commencing on April 1, 2010 and j continuing until the first day of the 2011 -2012 Vail Mountain ski season. i (d) Sub - surface and Air Rights The Servient Estate and the enjoyment of the Easement shall be limited to the surface of the areas comprising the Servient Estate from time to time, and VAI reserves and shall have all rights, on an exclusive basis, to develop, i improve, occupy, use and enjoy (i) all subterranean areas underlying or proximate to the Servient Estate (provided that the Servient Estate will not be deprived of the subjacent and lateral support necessary for the ordinary use and enjoyment of the Easement), and (ii) all air space overlying the Servient Estate that is above the height necessary to accommodate the Easement use (and any above - surface improvements given the requisite governmental approvals of the Town shall be deemed to fall within this clause (ii)). In I 2 l 8/31/2010 1 -3 -2