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HomeMy WebLinkAbout2011-01-18 Agenda and Support Documentation Town Council Work Session VAIL TOWN COUNCIL WORK SESSION AGENDA "fi TOW VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 2:00 P.M., JANUARY 18, 2011 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: DRB /PEC Update (15 min) PRESENTER(S): Warren Campbell 2. ITEM /TOPIC: A worksession to present an opportunity for the Town of Vail to participate in the construction of a below -grade loading and delivery tunnel within the Vail Village Inn Special Development District #6. (20 min) PRESENTER(S): George Ruther, Town of Vail & Jonathon Staufer, Vail Village Inn Homeowners Association ACTION REQUESTED OF COUNCIL: The Vail Village Inn Homeowners Association and the Town staff are asking the Vail Town Council to financially participate in the completion of the below -grade tunnel improvements. The estimated total cost of the tunnel improvements is +/- $100,000. The Vail Village Inn Homeowners Association has raised and committed +/- $75,000 towards resolving the loading and delivery needs of the special development district. The Vail Town Council is being asked to appropriate up to $25,000 towards the effort and help close the gap in financial need. BACKGROUND: The Vail Town Council instructed staff to work with the homeowners within the Vail Village Inn Special Development District on a long- term solution to the loading and delivery needs of the District. The Association and Staff have met and developed a solution to the needs and are requesting the Town participates in the resolution. See the staff memorandum for more detail. STAFF RECOMMENDATION: Town staff recommends the Vail Town Council instructs staff to prepare a resolution that authorizes the Town Manager to enter into an agreement with the Vail Village Inn Homeowners Association, in a form acceptable to the Town Attorney, to fund up to $25,000 of the costs to construct below -grade tunnel improvements within the Vail Village Inn Special Development District #6. See the staff memorandum dated January 18, 2011 for more detail. 3. ITEM /TOPIC: Attachments and Information Updates: (15 min) 1) Vail Economic Advisory Council (VEAC) minutes for December 14, 2010 2) Vail Economic Advisory Council (VEAC) minutes for January 11, 2011 1/18/2011 3) Town of Vail Economic Indicators as of December, 2010 4) EPS Ever Vail Update PRESENTER(S): Misc. 4. ITEM /TOPIC: Matters from Mayor and Council (15 min.) 5. ITEM /TOPIC: Executive Session: pursuant to: 1) C.R.S. §24- 6- 402(4)(b)(e) - to receive legal advice on specific legal questions; and to determine positions, develop a strategy and instruct negotiators, regarding: Comcast Franchise Agreement Renewal; 2) C.R.S. §24- 6- 402(4)(a)(b)(e) - to discuss the purchase, acquisition, lease, transfer, or sale of property interests; to receive legal advice on specific legal questions; and to determine positions, develop a strategy and instruct negotiators, regarding: discussion concerning negotiations regarding Timber Ridge redevelopment; 3)C.R.S. §24- 6- 402(4)(b) - to receive legal advice on specific legal questions regarding: La Bottega, Inc vs. Village Inn Plaza -Phase V Condominium Association lawsuit. (50 min.) PRESENTER(S): Matt Mire 6. ITEM /TOPIC: Adjournment (3:55 p.m.) NOTE: UPCOMING MEETING START TIMES BELOW (ALL ARE APPROXIMATE DATES AND TIMES AND SUBJECT TO CHANGE) --------------- - - - - -- THE NEXT REGULAR VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT APPROXIMATELY 12:30 P.M. (or TBD), TUESDAY, FEBRUARY 1, 2010 IN THE VAIL TOWN COUNCIL CHAMBERS FUTURE AGENDA ITEMS: Work Session for February 1, 2011: Update current Council Goals /2011 Strategic Plan - Stan - 30 min. Ford Park Parking Plan Discussion - George - 30 min. Local Purchasing Preferences - Judy - 30 min. Special Employee Recognition Program - JP - 15 min. EverVail Discussion - George - 60 min. Strategic Plan Update - Stan - 30 min. Evening Session for February 1, 2011: East Lionshead Plaza direction - Greg Hall - 30 min. Resolution No. 2, 2011, GoCo/ TOV agreement - Gregg Barrie /Matt - 5 min. Resolution No. 3, 2011 , IGA Eagle County School District GoCo - Gregg Barrie - 5 min. Ord. #3, 2011 Contractor Registration - George - 30 min. Building Permit Fee Discussion - George - 30 min. Work Session for February 15, 2011: Sandstone Road /Casolar Right of Way Vacation Site Visit - George - 20 min. Ford Park Fields and Parking discussion- Greg H. - 45 min. ? ?? Ord.4, Exactions and Dedications - Rachel - 30 min. ?? 1/18/2011 Evening Meeting for February 15, 2011: Sandstone /Casolar Right of Way Vacation - George - 30 min. Timber Ridge Rockfall Mitigation - George - 30 min. TimberRidge Update Discussion - George - 30 min. Work Session for March 1, 2011: VLMDAC /CSE Structure discussion - Stan /Kelli - 30 min. Lionshead RFP - Greg Hall - 30 min. Evening Meeting for March 1, 2011: Solar Panels - George - 30 min. Red Sandstone Playground Update - Attachment - Greg Other Dates TBD: Electronic Signs Policy Discussion - George - TBD Conference Center Funding Update - Stan - TBD Resolution on Parking - TOV summer/VRI winter -TBD - Greg - 30 min Century Tel WiFi Discussion - TBD - Ron /Matt - 30 min. Recognition of Howard and Cathy Stone/Vail Jazz Foundation - TBD - Dick Cleveland - 5 min. Historic /Landmark Preservation Discussion - July 2011/TBD - George - 30 min 1/18/2011 ITL1 oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 18, 2011 ITEM /TOPIC: DRB /PEC Update PRESENTER(S): Warren Campbell ATTACHMENTS: January 5, 2011 DRB Meeting Results January 10, 2011 PEC Meeting Results 1/18/2011 DESIGN REVIEW BOARD AGENDA PUBLIC MEETING OY�Al January 5, 2011 tfwlSlkTCouncil Chambers !�f'f 75 S. Frontage Road W. - Vail, Colorado, 81657 PROJECT ORIENTATION 2:00pm MEMBERS PRESENT MEMBERS ABSENT Tom DuBois Libby Plante Pete Dunning Brian Gillette Rollie Kjesbo SITE VISITS 1. Qdoba Mexican Grill — 2161 North Frontage Road 2. Village Inn Plaza — 100 East Meadow Drive 3. Yeti's Grind — 141 East Meadow Drive PUBLIC HEARING — TOWN COUNCIL CHAMBERS 3:00pm 1. Qdoba Mexican Grill DRB100614 / 15 minutes Rachel Final review of a sign (business identification) 2161 North Frontage Road, Unit 9 /1-ot 2, Vail Das Schone Filing 3 Applicant: QMG Vail LLC, represented by Kristin Comerford ACTION: Approved with condition MOTION: DuBois SECOND: Kjesbo VOTE: 4-0-0 CONDITION: 1. The applicant shall utilize white LED lights as the light source and white faced lettering to match the color of the existing white letters of other tenants. The applicant may utilize the proposed red for the letter "0" in Qdoba only should they desire to have an accent color. 2. Langmaid /Canada Duplex DRB100624 / 5 minutes Rachel Final review of a minor exterior alteration (landscaping) 2940 Manns Ranch Road /Lot 9, Block 1, Vail Village Filing 13 Applicant: Charles Langmaid, represented by A Cut Above Forestry ACTION: Tabled to January 19, 2011 MOTION: DuBois SECOND: Kjesbo VOTE: 4 -0 -0 3. Village Inn Plaza DRB100625 / 15 minutes Warren Final review of a sign (joint directory) 100 East Meadow Drive /Lot O, Block 5D, Vail Village Filing 1 Applicant: Village Inn Plaza, represented by Mauriello Planning Group ACTION: Approved MOTION: DuBois SECOND: Kjesbo VOTE: 4 -0 -0 Page 1 1/18/2011 1 -1 -1 4. Yeti's Grind DRB100628 / 15 minutes Bill Final review of a sign (business identification) 141 East Meadow Drive /Lot P, Block 5D, Vail Village Filing 1 Applicant: Yeti's Grind, represented by Nate Picklo ACTION: Approved with condition MOTION: DuBois SECOND: Kjesbo VOTE: 4-0-0 CONDITION: 1. The bracket, including the mountain graphic, shall be painted brown to match the stairs behind the sign. STAFF APPROVALS Pericles Realty DRB100376 Bill Final review of an addition (enclose balcony) 44 West Meadow Drive, Unit 3 /Lot I, Vail Village Filing 2 Applicant: Pericles Realty, represented by Rusty Spike Enterprises Hillary Residence DRB100610 Rachel Final review of a minor exterior alteration (garage, windows, HVAC unit) 362 Vail Valley Drive /Tract B, Vail Village Filing 1 Applicant: Jim & Anne Hillary, represented by Steve Diamond Lotker Residence DRB100611 Rachel Final review of a minor exterior alteration (doors) 2664 Larkspur Lane /Lot 4, Block 1, Vail Intermountain Subdivision Applicant: Marc Lotker, represented by Four Seasons Services First Chair DRB100615 Warren Final review of a change to approved plans (gas meter) 600 West Lionshead Circle /Lot 1, Block 1, Vail Lionshead Filing 3 Applicant: Vail Corp, represented by Kyle Griffith Galvin Residence DRB100618 Bill Final review of a minor exterior alteration (flue) 303 Gore Creek Drive, Unit 9 /Lot 9, Block 5, Vail Village Filing 1 Applicant: Christopher Galvin Revocable Trust, represented by George Shaeffer Construction Bell Residence DRB100619 Rachel Final review of a minor exterior alteration (doors) 2065 West Gore Creek Drive Unit 8 /Unplatted Applicant: Stephen Bell, represented by Hans Berglund Cabela Residence DRB100623 Final review of a minor exterior alteration (A /C Unit) 595 Vail Valley Drive, Unit 430 (Manor Vail) /Lots A -C, Vail Village Filing 7 Applicant: Richard Cabela, represented by Todd Raper Haagen -Dazs DRB100626 Rachel Final review of a sign (menu box) 675 Lionshead Place /Lots 1 -2, Lionshead Filing 6 Applicant: Haagen -Dazs, represented by Ric Almas Page 2 1/18/2011 1 -1 -2 Vail Run Resort DRB100629 Rachel Final review of a minor exterior alteration (hot tub) 1000 Lions Ridge Loop /Lot 10, Block C, Lions Ridge Filing 1 Applicant: Vail Run Resort Community Association, represented by Alan McLean O'Malley Residence DRB100630 Tom Final review of a minor exterior alteration (landscaping) 354 Beaver Dam Road /Lot 9, Block 2, Vail Village Filing 3 Applicant: Thomas O'Malley, represented by Sara Charles Slifer Smith & Frampton DRB100632 Bill Final review of a change to an approved sign (business identification) 141 East Meadow Drive /Lot P, Block 5D, Vail Village Filing 1 Applicant: Slifer Smith & Frampton, represented by Ricardo Souto Vail Resorts DRB100633 Rachel Final review of a sign (sign program) 560 East Lionshead Circle (ski base areas) /Lot 2, Lionshead Filing 6 Applicant: Vail Corporation, represented by Jeffrey Babb The applications and information about the proposals are available for public inspection during regular office hours in the project planner's office, located at the Town of Vail Community Development Department, 75 South Frontage Road West. Please call 479 -2138 for information. Sign language interpretation available upon request with 24 hour notification. Please call 479 -2356, Telephone for the Hearing Impaired, for information. Page 3 1/18/2011 1 -1 -3 PLANNING AND ENVIRONMENTAL COMMISSION January 10, 2011 at 1:00pm MD , NOFja ' TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 MEMBERS PRESENT MEMBERS ABSENT Luke Cartin Michael Kurz Bill Pierce Henry Pratt John Rediker Tyler Schneidman David Viele Site Visits: 1. Lapin Residence — 212 and 232 West Meadow Drive 30 minutes 1. A request for the review of a final plat, pursuant to Section 13 -12 -3, Plat Procedures and Criteria for Review, Vail Town Code, to allow for the resubdivision of Lots 6 and 7, Vail Village Filing 2, located at 212 and 232 West Meadow Drive, and setting details in regards thereto. (PEC100054) Applicant: Mery Lapin, represented by Hans Berglund, Berglund Architects Planner: Rachel Dimond ACTION: Approved with conditions MOTION: Kurz SECOND: Viele VOTE: 7 -0 -0 CONDITIONS: 1. Prior to recording the subject final plat for Lot 6 and Lot 7, Vail Village Filing 2, the applicant shall either relocate the existing Lot 6 driveway entirely within the new Lot 6 property boundaries or the applicant shall grant Lot 6 an access easement across Lot 7 for the existing Lot 6 driveway. Should the applicant choose to relocate the existing Lot 6 driveway, the applicant must obtain Town of Vail design review approval prior to construction. 2. Prior to recording the subject final plat for Lot 6 and Lot 7, Vail Village Filing 2, the applicant shall remove all existing Lot 7 deck encroachments from the Gore Creek stream setback area and the adjacent Town of Vail owned Gore Creek stream tract. Rachel Dimond made a presentation per the Staff memorandum. Commissioner Cartin inquired about the legal issues previously discussed with the PEC and overturned by the Town Council. He asked Staff to provide additional information on what happened. Commissioner Kurz stated that the proposal fits in with the character of the neighborhood. Commissioner Rediker asked about the drainage easement and stream tract encroachments. Rachel Dimond responded that the 5 -foot drainage easement would parallel the property line and be paired with a 5 -foot easement on the adjacent property to provide a 10 -foot drainage easement. The easement could contain a surface swale, subterranean pipes, and water quality measures such as oil and sand separators. Pa gqe 1 1/18 /217 l 1 1 -2 -1 30 minutes 2. A request for a recommendation to the Vail Town Council for 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 removal of Development Area D (Glen Lyon Office Building) from Special Development District No. 4, Cascade Village, and for a zone district boundary amendment, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to include the subject property in the Lionshead Mixed Use 2 District, located at 1000 S. Frontage Road West /Lot 54, Glen Lyon Subdivision, and setting forth details in regard thereto. (PEC090036) Applicant: Ever Vail, LLC, represented by the Mauriello Planning Group, LLC Planner: Warren Campbell ACTION: Tabled to January 24, 2011 MOTION: Kurz SECOND: Rediker VOTE: 5 -0 -0 Commissioners Kurz and Rediker stated that they were concerned about making a final determination or recommendation for such a complex project without adequate time for review. Commissioner Cartin recused himself as his employer was the applicant and Commissioner Viele recused himself as he had a financial interest in the Glen Lyon Office Building which is to be a part of the project if approved. This applied to agenda items 2, 3, and 4. Warren Campbell requested that the Chairman read into the record the descriptions for items 3 and 4 on the agenda as the three Ever Vail applications to be heard and the Staff presentation would cover all three as they are interconnected with regard to their review. George Ruther made a brief presentation on the process for the review of the Ever Vail project. Warren Campbell made a presentation per the Staff memorandum. He requested that the Commission table the SDD amendment as a need to notify additional individuals was necessary. The Commission tabled this item. 30 minutes 3. A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to allow for a rezoning of properties from Arterial Business District to Lionshead Mixed Use 2 District, located at 953 (Vail Professional Building) and 1031 (Cascade Crossing) South Frontage Road West / Unplatted and a zoning of portions of South Frontage Road West street right -of -way to Lionshead Mixed Use 2 District, located at South Frontage Road West right -of -way (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080061) Applicant: Ever Vail LLC, represented by the Mauriello Planning Group, LLC Planner: Warren Campbell ACTION: Recommendation of approval with conditions MOTION: Kurz SECOND: Pratt VOTE: 5-0-0 CONDITIONS: 1. Approval of this zone district boundary amendment is contingent upon the applicant obtaining Town of Vail approval of the associated major amendment to a special development district to allow for the removal of Development Area D (Glen Lyon Office Building) from Special Development District No. 4, Cascade Village. 2. Approval of this zone district boundary amendment shall only become effective upon recording of the associated Ever Vail Subdivision Final Plat as approved by the Planning and Environmental Commission and the Vail Town Council in accordance with Title 13, Subdivision Regulations, Vail Town Code." Pa gqe 2 1/18/2011 1 -2 -2 Tom Miller, representing Vail Resorts Development Company, introduced the project team. Dominic Mauriello presented a recap of the review that has taken place thus far and the process moving forward. He then went into detail regarding the preliminary plan, rezoning, and the SDD amendment. Specifically, he went over changes to the project since the last presentation. Jim Lamont, Vail Homeowners Association, asked about locations for skier drop off. Dominic Mauriello responded by showing skier drop off in the transit center on site. There are 4 bus bays and 13 skier drop off spaces. He added that there was a DEVO drop off 50 plus short term spaces in the west phase of the project. On a non - Saturday, there will be an abundance of skier drop off. Commissioner Pratt asked if a recommendation could be made if the SDD amendment were to be tabled. Warren Campbell responded yes. 30 minutes 4. A request for a review of a preliminary plan for a major subdivision, pursuant to Chapter 13 -3, Major Subdivision, Vail Town Code, to allow for the creation of two lots for the redevelopment of the properties known as Ever Vail (West Lionshead), located at 862, 923, 934, 953, 1000 and 1031 South Frontage Road West, and the South Frontage Road West rig ht-of-way/U n platted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080062) Applicant: Ever Vail LLC, represented by the Mauriello Planning Group, LLC Planner: Warren Campbell ACTION: Recommendation of approval with conditions MOTION: Kurz SECOND: Schneidman VOTE: 5 -0 -0 CONDITIONS: 1. The applicant shall be required to enter into a subdivider's agreement with the Town of Vail, which shall detail all elements negotiated between the applicant and the Town prior to the approval of the preliminary plan by the Town Council. 2. This approval for a preliminary plan is contingent upon approval of the associated special development district major amendment application and the adoption of the proposed Lionshead Mixed Use 2 District zoning for the property. 3. The applicant shall submit the final plat for review and approval by January 10, 2012, per Section 13 -3 -6, Final Plat, Vail Town Code." 30 minutes 5. A request for a recommendation to the Vail Town Council for a prescribed regulation amendment, pursuant to Section 14 -1 -3, Administration of Standards, Vail Town Code, to amend Section 14- 10 -5H, Building Materials and Design, Vail Town Code, to amend regulations for solar panels, and setting forth details in regard thereto. (PEC100055) Applicant: Town of Vail Planner: Rachel Dimond ACTION: Recommendation of approval with conditions MOTION: Kurz SECOND: Viele VOTE: 6 -1 -0 (Cartin opposed) CONDITIONS: 1. Staff shall provide in the ordinance presented to Town Council, additional language addressing maintenance and continued operation. Pa gqe 3 1/18/2011 1 -2 -3 2. Staff shall provide in the ordinance presented to Town Council, additional language containing an intent section detailing the goals and objectives of the regulations to minimize visual impacts. 3. Staff shall provide in the ordinance presented to Town Council, additional language addressing the calculation of site coverage for ground mounted panels. 4. Staff shall amend in the ordinance presented to Town Council, a revised definition of solar energy devices which matches the State's definition. 5. Staff shall amend the in the ordinance presented to Town Council, the language to substitute "up to 50" for "40 to 50." Rachel Dimond made a presentation per the Staff memorandum. Commissioner Kurz voiced his concern about maintenance. He wants to make sure panels are not aesthetically objectionable and maintained over time. Commissioner Cartin stated that the proposed regulation may be in violation of State law. He also stated the proposed regulations do not address new technologies in solar collection. Rachel Dimond responded that legal counsel believes the Town regulations are not in violation of State law. Commissioner Pratt asked if homeowners have to follow any regulations based on State law. Rachel Dimond responded that homeowners must follow Town regulations. George Ruther briefly touched upon the process and the background of the proposed regulations. Commissioner Rediker asked if any aesthetic requirements would violate State law. Commissioner Kurz stated that the PEC needs to decide whether to move forward to the Town Council to let them decide on compliance with State law. Rediker stated the proposed regulations should say "up to 50" instead of "40 -50." Commissioner Pierce stated that we are trying to adapt to new technologies and the ne4ed for solar panels. Commissioner Rediker asked whether the definition of solar panels matches the State's definition. He suggested Staff expand the definition to include future technologies and includes appurtenant equipment. He suggested more clarity on how to calculate site coverage. Commissioner Pierce asked whether is it better to put panels on the ground for reduction to visual impacts. Commissioner Pratt suggested a statement of intent be added that includes reducing visual impact. Commissioner Cartin added that he is concerned about the stringent regulations and their lack of ability to adjust to new technologies. Commissioner Viele asked if the debate on State law should occur at PEC or Town Council. 45 minutes Pa gqe 4 1/18/2011 1 -2 -4 6. A request for a recommendation to the Vail Town Council, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12 -26, Exactions and Dedications, Vail Town Code, to allow for the creation of regulations for mitigation of development impacts, and setting forth details in regard thereto. (PEC100050) Applicant: Town of Vail Planner: George Ruther/ Rachel Dimond ACTION: Tabled to February 14, 2011 MOTION: Pratt SECOND: Viele VOTE: 7-0-0 George Ruther made a presentation per the Staff memorandum. Commissioner Kurz asked what the process is for appealing a required exaction or mitigation? George Ruther responded that the appeals process would be PEC, Town Council and then Civil Court. Commissioner Viele asked what authority Staff has to apply for amendments to the adopted regulations. George Ruther clarified that the Town Council, PEC, members of the public or Staff can apply for regulations amendments. Commissioner Pratt suggested that mitigation only be required when projects exceed that which is permitted under the current zoning. George Ruther responded that studies show that development which comply with zoning still have impacts to facilities and services that needs to be financially addressed. Commissioner Kurz voiced concern over the open ended nature of "infrastructure facilities and services." He suggested listing types of impacts and mitigation requirements. He further inquired as to who pays for studies to determine impacts. George Ruther responded that applicants would pay for the studies. He added that the ordinance is trying to address the economic sustainability of the Town. Commissioner Viele suggested that this type of ordinance should go to voters, as it seems like a tax. George Ruther responded that this is not a tax and does not have to go to voters. Commissioner Viele stated that the timing for this ordinance is misplaced givent he county's economic situation and there needs to be regulations on eliminating the negotiations process. Commissioner Kurz stated his concern about the loss of the negotiation process which to his knowledge has worked well thus far. Commissioner Pratt asked if this ordinance would apply to Ever Vail. George Ruther responded that he did not believe it would apply to any applications that have already been submitted. Legal counsel would need to answer this question. Commissioner Pierce suggested there needs to be a distinction between upzoning, SDD deviations and projects that comply with existing zoning. Pa gqe 5 1/18/2011 1 -2 -5 Commissioner Pratt stated that allowable zoning should reflect impacts that the Town could absorb, not require the applicant to pay for. George Ruther responded that when West Vail was rezoned in the 1970's and 80's, that the Town would have had to build 5 lane roads and other supporting infrastructure instead of improving infrastructure as needed over time. Commissioner Viele stated that the tax base should pay for changes to infrastructure. Commissioner Pierce stated that the exactions should be more predictable. 5 minutes 7. A request for a recommendation to the Vail Town Council for a prescribed regulation amendment, pursuant to Section 11 -3 -3, Prescribed Regulations Amendment, Vail Town Code, to amend Section 11 -7 -15, Public Parking and Loading Signs for Private Property, to allow signs for public parking on private property, and setting forth details in regard thereto. (PEC100056) Applicant: Solaris Property Owner, represented by Michael Suman Planner: Bill Gibson ACTION: Tabled to January 24, 2010 MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 5 minutes 8. A request for final review of conditional use permits, pursuant to Section 12 -71 -5, Conditional Uses: Generally (On All Levels Of A Building Or Outside Of A Building), Vail Town Code, to allow for the development of a public or private parking lot (parking structure); a vehicle maintenance, service, repair, storage, and fueling facility; a ski lift and tow (gondola), within "Ever Vail" (West Lionshead), located at 862, 923, 934, 953, and 1031 South Frontage Road West, and the South Frontage Road West rig ht-of - way /Unplatted (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080063) Applicant: Vail Resorts, represented by Mauriello Planning Group, LLC Planner: Warren Campbell ACTION: Tabled to January 24, 2010 MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 5 minutes 9. A request for a final review of a variance from 12- 71 -14, Site Coverage, Vail Town Code, pursuant to Chapter 12 -17, Variances, to allow for additional site coverage below grade, within "Ever Vail" (West Lionshead), located at 934 (BP Site), 953 (Vail Professional Building), 1031 (Cascade Crossing) S. Frontage Road / Unplatted; 862 (VR Maintenance Shop) and 923 (Holy Cross Lot) S. Frontage Road / Tracts A and B, S. Frontage Road Subdivision; 1000 (Glen Lyon Office Building) S. Frontage Road / Lot 54, Glen Lyon Subdivision (a complete legal description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC090035) Applicant: Vail Resorts, represented by Mauriello Planning Group, LLC Planner: Warren Campbell ACTION: Tabled to January 24, 2010 MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 5 minutes 10. A request for a work session on a major exterior alteration, pursuant to Section 12 -71 -7, Exterior Alterations or Modifications, Vail Town Code, to allow for the redevelopment of the area known as "Ever Vail" (West Lionshead), with multiple mixed -use structures including but not limited to, multiple - family dwelling units, fractional fee units, accommodation units, employee housing units, office, and commercial /retail uses, located at 862, 923, 934, 953, and 1031 South Frontage Road West, and the South Frontage Road West right -of- way /Unplatted (a complete legal Pa gqe 6 1/18/2011 1 -2 -6 description is available for inspection at the Town of Vail Community Development Department), and setting forth details in regard thereto. (PEC080064) Applicant: Vail Resorts, represented by Mauriello Planning Group, LLC Planner: Warren Campbell ACTION: Tabled to January 24, 2010 MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 5 minutes 11. A request for a final recommendation to the Vail Town Council for prescribed regulations amendments to Title 12, Zoning Regulations and Title 14, Development Standards, Vail Town Code, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to provide regulations that will implement sustainable building and planning standards, and setting forth details in regard thereto. (PEC090028) Applicant: Town of Vail Planner: Rachel Friede ACTION: Tabled to February 14, 2011 MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 5 minutes 12. A request for review of a variance, pursuant to Chapter 14 -1 -5, Variances, Vail Town Code, from Section 14 -10 -5, Building Materials and Design, Vail Town Code, to allow for the installation of solar panels within two feet of a roof ridge and eave and extending higher than the ridgeline, located at 4918 Meadow Drive, Unit A/Lot 16, Block 7, Bighorn Subdivision Fifth Addition, and setting forth details in regard thereto. (PEC100046) Applicant: Laurent Meillon Planner: Rachel Dimond ACTION: Tabled to January 24, 2011 MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 13. Approval of December 15, 2010 minutes ACTION: Tabled to January 24, 2011 MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 14. Information Update 15. Adjournment MOTION: Kurz SECOND: Pratt VOTE: 7-0-0 The applications and information about the proposals are available for public inspection during regular office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call (970) 479 -2138 for additional information. Sign language interpretation is available upon request with 24 -hour notification. Please call (970) 479 -2356, Telephone for the Hearing Impaired, for information. Community Development Department Published January 7, 2011, in the Vail Daily. Pa gqe 7 1/18/2011 1 -2 -7 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 18, 2011 ITEM /TOPIC: A worksession to present an opportunity for the Town of Vail to participate in the construction of a below -grade loading and delivery tunnel within the Vail Village Inn Special Development District #6. PRESENTER(S): George Ruther, Town of Vail & Jonathon Staufer, Vail Village Inn Homeowners Association ACTION REQUESTED OF COUNCIL: The Vail Village Inn Homeowners Association and the Town staff are asking the Vail Town Council to financially participate in the completion of the below -grade tunnel improvements. The estimated total cost of the tunnel improvements is +/- $100,000. The Vail Village Inn Homeowners Association has raised and committed +/- $75,000 towards resolving the loading and delivery needs of the special development district. The Vail Town Council is being asked to appropriate up to $25,000 towards the effort and help close the gap in financial need. BACKGROUND: The Vail Town Council instructed staff to work with the homeowners within the Vail Village Inn Special Development District on a long -term solution to the loading and delivery needs of the District. The Association and Staff have met and developed a solution to the needs and are requesting the Town participates in the resolution. See the staff memorandum for more detail. STAFF RECOMMENDATION: Town staff recommends the Vail Town Council instructs staff to prepare a resolution that authorizes the Town Manager to enter into an agreement with the Vail Village Inn Homeowners Association, in a form acceptable to the Town Attorney, to fund up to $25,000 of the costs to construct below -grade tunnel improvements within the Vail Village Inn Special Development District #6. See the staff memorandum dated January 18, 2011 for more detail. ATTACHMENTS: Town Council Memorandum 1/18/2011 MEMORANDUM TO: Vail Town Council FROM: Town Staff SUBJECT: Vail Village Inn Special Development District #6 Loading and Delivery Tunnel Improvements. DATE: January 18, 2011 I. PURPOSE The purpose of this memorandum is to present an opportunity to the Vail Town Council for the Town of Vail to participate in the completion of dispersed on -site loading and delivery improvements within the Vail Village Inn Special Development District #6. II. BACKGROUND On June 19, 2007, staff received direction to develop a Council- supported operational plan for the successful use of a dispersed loading and delivery network in Vail Village. The direction reaffirmed policy decisions established years earlier in the Town's ongoing effort to address the various conflicts associated with loading and delivery in Vail Village. Since receiving direction and reaffirmation on the Town's loading and delivery policies in Vail Village a number of key loading and delivery milestones have been met. For example, the underground Mountain Plaza facility (12 shared bays) and the Sebastian Hotel facility (5 shared bays) and the Solaris facility (4 shared bays) have all been completed and are fully operational. Additionally, a limited, on- street delivery pilot program for East Meadow Drive has been implemented. Several key elements of the existing pilot program are: • On- street loading and delivery on the street's north side from Vail Boot and Shoe west to Alpenrose from 5 a.m. to 8 a.m. Restrictions apply. Drivers enter from the east from Village Center Chute or Checkpoint Charlie to access and must not impede bus service which begins at 6 a. m. • Police department has reviewed and updated regulatory signs as necessary to solicit compliance. • Policies have been strictly enforced. When the Town Council adopted the pilot program for East Meadow Drive, the Council instructed staff to return with a long -term solution upon the completion of the Solaris loading and delivery improvements. Specifically, the Town Council instructed staff to, "facilitate cooperative agreements with affected parties and property in the Vail Village Inn Special Development District (SDD #6) and the Town of Vail to explore alternatives such as a freight elevator or lift that will accommodate the transport of deliveries from the loading dock at 1 1/18/2011 2 -1 -I Sebastian Hotel to businesses on East Meadow Drive. Staff was asked to return to the Town Council with an update. This update was to include the status of property owner consent, cost estimates, a plan for financial responsibility and overall effectiveness of each of the solutions in accommodating loading and delivery functions so trucks can ultimately be removed from East Meadow Drive." In pursuit of long -term solutions on East Meadow Drive, Town staff met on site with representatives of the Vail Village Inn Special Development District and several general contractors. The purpose of the meeting was to formulate a plan for improving on -site loading and delivery circulation and to prepare written cost estimates for completing three possible circulation improvement alternatives. The three alternatives included: 1. Installing a new freight elevator within the Vail Village Inn Condominiums (Phase III) parking garage. (interior) 2. Excavating a below grade tunnel between the Vail Village Inn Condominiums (Phase III) parking garage and the Sebastian Hotel. 3. Installing a new freight elevator near the exterior entrance into the back of house tunnel system entrance. (exterior) Alternative #1 is not a viable consideration. The initial cost estimate for the construction of a new interior freight elevator within the Vail Village Inn Condominiums (Phase III) parking garage is approximately $134,000. Existing physical constraints prevent this alternative from being implemented in a cost effective manner. Alternative #2 is a viable consideration. The initial cost estimate for excavating a below grade tunnel between the Vail Village Inn Condominiums (Phase III) parking garage and the Sebastian Hotel is approximately $100,000. Alternative #3 is not a viable consideration. Due to the presence of a high pressure natural gas line and a significant amount of buried utilities, it was unanimously concluded that the new exterior freight elevator is too cost prohibitive and not worth pursuing any further. III. ACTION REQUESTED OF THE VAIL TOWN COUNCIL The Vail Village Inn Homeowners Association has convened and is committed to resolving the loading and delivery needs of the owners within the special development district. To that end, the owners have developed a plan to construct a below -grade tunnel connection between the Sebastian Hotel and the Vail Village Inn Condominiums (Phase III). Once completed, the tunnel connection will allow goods and materials to be distributed throughout the special development district from the loading and delivery area located within the Sebastian Hotel. This opportunity does not exist today. The Vail Village Inn Homeowners Association and the Town staff are asking the Vail Town Council to financially participate in the completion of the below -grade tunnel improvements. The estimated total cost of the tunnel improvements is +/- $100,000. The Vail Village Inn Homeowners Association has raised and committed +/- $75,000 towards 2 1/18/2011 2 -1 -2 resolving the loading and delivery needs of the special development district. The Vail Town Council is being asked to appropriate up to $25,000 towards the effort and help close the gap in financial need. Does the Vail Town Council support appropriating up to $25,000 towards the construction of a below -grade tunnel for loading and delivery within the Vail Village Inn Special Development District #6? If directed to do so, staff will prepare a resolution for consideration by the Town Council at the February 1, 2011 evening meeting and propose a mechanism for funding the financial contribution. IV. STAFF RECOMMENDATION Town staff recommends the Vail Town Council instructs staff to prepare a resolution that authorizes the Town Manager to enter into an agreement with the Vail Village Inn Homeowners Association, in a form acceptable to the Town Attorney, to fund up to $25,000 of the costs to construct below -grade tunnel improvements within the Vail Village Inn Special Development District #6. Staff's recommendation is based on the following considerations: • The East Meadow Drive pilot program presently in place contemplated a long- term solution like a below grade tunnel connection. • Providing a location for loading and delivery trucks in addition to East Meadow Drive furthers a compelling interest of the Town by reducing noise, congestion, and disturbance on East Meadow Drive and improving public safety. • The Vail Village Master Plan and the Pedestrian Mall Act of 1978 establish a goal of pedestrianizing Vail Village. The proposed tunnel connection furthers this goal. • To date, the private sector has invested $12 -$15 million in private loading and delivery facility improvements. These improvements aid in achieving the goal of pedestrianizing the Town's commercial cores. A $25,000 contribution from the Town is reasonable given the Town's goals and all those who will benefit. • Participating in the construction of the tunnel contributes to the general health safety and welfare of the community. • Improved loading and delivery operations in the East Meadow Drive neighborhood enhance the business, resident and guest experiences. • An opportunity exists for all affected parties to work together in resolving an ongoing issue and need. • The Town's participation is financial only. The Town is not involved in the actual construction of the tunnel or its ongoing operations and maintenance. • The Town and its citizen's have been working for over 30 years on addressing the negative impacts of loading and delivery and this is yet another positive step forward for the community. 3 1/18/2011 2 -1 -3 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 18, 2011 ITEM /TOPIC: Attachments and Information Updates: (15 min) 1) Vail Economic Advisory Council (VEAC) minutes for December 14, 2010 2) Vail Economic Advisory Council (VEAC) minutes for January 11, 2011 3) Town of Vail Economic Indicators as of December, 2010 4) EPS Ever Vail Update PRESENTER(S): Misc. ATTACHMENTS: Vail Economic Advisory Meeting Minutes 121410 Vail Economic Advisory Meeting Minutes 011111 Vail Economic Indicators EPS Ever Vail Update 1/18/2011 VAIL ECONOMIC ADVISORY COUNCIL (VEAC) December 14, 2010 MEETING NOTES -VEAC Members Present: Rayla Kundolf; Michael Kurz; Brian Nolan; Laurie Mullen; Rob LeVine; Greg Moffet; Mike Ortiz; Steve Kaufman; Joe McHugh; Brett Schoenfield; Kim Newbury; Pam Stenmark; Steve Rosenthal - Others present: Ralf Garrison; Katie Barnes; Chris Romer; Jim Lamont; Rich tenBraak; Doug Smith -TOV Staff Present: Town Manager Stan Zemler; Finance Director Judy Camp and Economic Development Manager Kelli McDonald - Mountain Travel Research Update Ralf Garrison presented highlights of the 2010 May — October season and a preview of the 2010/11 winter season. For the summer season, Vail continued to lead the industry in occupancy, average daily rate and revenue per available room. Special events continue to be a differentiator and economic driver. Summer 2010 sales outperformed Summer 2009 sales in Vail Village and in Lionshead in all sectors including retail, restaurants and lodges. Looking ahead to the winter season, Vail continues to lead the industry in lodging occupancy, average daily rate and revenue per available room. Top destinations will need to remain nimble and offer the right product at the right time for the right price. A copy of the presentation can be found on www.vailgov.com on the Economic Development Office page. - Conference Center Funds Update Town Manager Stan Zemler gave an update on conference center funds reallocation. On September 7, 2010 Kent Logan presented concepts for the highest and best use of the $9.3 million conference center funds. These concepts came out of a process directed by Council to interview a cross section of stakeholders with the goal of utilizing the funds to increase overall economic vitality in the Town of Vail with the funds earmarked for capital assets, either new or existing facilities, providing a long -term benefit to the Town of Vail. On September 21, 2010 Kent Logan and Town of Vail staff presented a recommended process for defining clear purpose and programming for each of the physical assets identified as having the most potential to achieve the goals of upgrading existing facilities, completing the Renaissance and putting the finishing touches on the town. The projects include: 1. Remodel the Golf Clubhouse with the addition of an events pavilion — estimated at $3.5 million 2. Remodel and expansion of Vail Village Welcome Center to include community space — estimated at $2 million 3. Town wide signage /information /guest enhancement system — estimated at $1 million 4. Expansion and renovation of Dobson arena to allow for more uses — estimated at $2 million 1/18/2011 3 -1 -I 5. Ford Park expansion of fields to create an additional field and extend the season — estimated at $1 million Zemler mentioned that conference center funds are not the only source for many of the projects which could also utilize capital funds. Some VEAC members recommended more information on business plans /ROI for each of the projects. Since the original intent of the funds was to drive overnight visitation, this needs to be addressed moving forward. There are also outside groups recommending projects such as the CMC building at the Cascade and a remodel of the Ford Amphitheater and adjacent land. The staff will go back to Council with another update in February and this must ultimately go to a vote of the people. 2015 World Championships VEAC members asked Zemler for an update on the 2015 World Championships which was given to Town Council at the December 7 meeting by the Vail Valley Foundation. Beaver Creek will be "Race Central' and Vail will be "Celebration Central'. VVF is requesting $1.25 million in cash and $175,000 of in -kind support from the Town of Vail. There is an organizing committee that the Town of Vail is participating in. Council asked staff to engage a third party to do an analysis to determine if Vail could still host races.. - Financial Reports Finance Director Judy Camp presented revenue highlights from October 2010. Sales tax collections for the month are expected to be $588,667 up 3.4 percent from budget and 1.3 percent from last year. The summer season (May — October) is up 5.2 percent from last summer. Year -to -date sales tax collections are expected to be up 3.7 percent from budget and up 2.1 percent from last year. Use tax collections as of November 30, 2010 total $1,071,153 as compared with $701,902 at this time last year and a full year budget of $600,000. Construction permit fee revenue through November 30, 2010 totals $658,570, down 16 percent from last year. RETT collections through November 30, 2010 total $6,337,139 compared with $2,323,800 at this time last year. The full year budget for RETT is $6,083,000 and we have surpassed that by over $250,000. Across all funds and revenue accounts through November 30, 2010, total revenue of $41.8 million is up 18.4 percent year -to -date from this time last year and up 15.8 percent from the budget. More details on financial reports can be found on the Sales Tax page of www.vailgov.com -Other Business Staff presented a memo regarding the question on whether same store sales report is still relevant given that there are only 18 businesses in 3 categories surveyed in each neighborhood. The 18 businesses reported account for 40 percent of all sales in the Town of Vail. As in prior years, the finance department will generate a report at the end of 2010 showing revenue generated from newly developed and redeveloped properties. The staff recommendation was to maintain the existing report as it is currently generated and the VEAC members agreed. -Next Meeting Tuesday, January 11, 8:00 — 10:00 a.m. at The Antlers 1/18/2011 3 -I -2 VAIL ECONOMIC ADVISORY COUNCIL (VEAC) January 11, 2011 MEETING NOTES -VEAC Members Present: Alan Kosloff; Rayla Kundolf; Michael Kurz; Brian Nolan; Greg Moffet; Rob LeVine; Laurie Mullen; Mike Ortiz; Andy Daly; Joe McHugh; Bob Boselli; Pam Stenmark; Steve Rosenthal; Mia Vlaar; Matt Morgan - Others present: Chris Romer; Jim Lamont; Rich tenBraak; Meredith Richards; Patrick Marshall -TOV Staff Present: Town Manager Stan Zemler; Finance Director Judy Camp and Economic Development Manager Kelli McDonald - Bravo! Vail Valley Music Festival Economic Impact Study Alan Kosloff is Chairman of the Bravo! Board and introduced Meredith Richards and Patrick Marshall to present an economic impact study from the 2010 festival to the members. Total attendance was 60,000 with Colorado, Florida and Texas representing the top 3 states for attendees; attendees and musicians account for 42,496 room nights during the festival resulting in $6.9 million spent on lodging; 39% of the respondents shopped in Vail and spent an average of $212.38 per person resulting in $4.5 million in spending; 79% of those who dine out post - concert dine in Vail, spending an average of $49.66 per person resulting in $1.2 million in spending; Total spending in the Town of Vail was $6.8 million resulting in $263,636 in sales tax. Bravo! now has a budget of $8.24 million. Bravo! has hired a new artistic director, Anne Marie McDermott and she will give a free piano recital at the Ford Amphitheatre on June 26. She would like to offer a broader appeal with the music selections. There is a dedication to community music education by the organization. The average age of patrons is 60, but they have a Bach on the Rocks program aimed at 25 — 45 year olds. Many members in the restaurant business reported having some of their highest volume nights of the summer during Bravo! concerts. There was discussion about moving the start time later or earlier to accommodate additional dining options and better coordination between field events of VRD and Bravo! concerts. There was additional discussion about proposed improvements at the Ford Amphitheatre and the surrounding area including Betty Ford Alpine Gardens and road access. - Financial Reports Finance Director Judy Camp presented revenue highlights from November 2010. Sales tax collections for the month are expected to be $693,141 up 8.4 percent from budget and 6.3 percent from last year. Year -to -date sales tax collections are expected to be up 3.7 percent from budget and up 2.1 percent from last year. Use tax collections as of December 29, 2010 total $1,112,193 as compared with $714,785 at this time last year and a full year budget of $1,050,000. Construction permit fee revenue through December 29, 2010 totals $687,666, down 13 percent from last year. RETT collections through December 29, 2010 total $6,876,467 compared with $2,485,854 at this time last year. The full year budget for RETT is $6,083,000 and we have surpassed that by over 1/18/2011 3 -2 -1 $793,000. Across all funds and revenue accounts through December 29, 2010, total revenue of $44.7 million is up 20.9 percent year -to -date from this time last year and up 13.7 percent from the budget. More details on financial reports can be found on the Sales Tax page of www.vailgov.com - Lodging Occupancy Economic Development Manager Kelli McDonald presented the most recent occupancy reports as of December 31, 2010. December occupancy was flat to 2009 but rate was up 7 %; pacing for January occupancy is 7% ahead of same time 2009 and rate is up 5% from 2009; February occupancy is pacing up 1% from 2009 and rate is up 6% from 2009; March occupancy is pacing up 14% from 2009 and rate is up 2 %; April is pacing behind 2009 14% and rate is down 10 %. Lodging representatives expect April occupancies and rates to pick up but at a later date. Lodging occupancy reports can be found on the Economic Development page of www.vailgov.com - Town Manager Update Town Manager Stan Zemler asked for reports from members on holiday business and early January volume. All members reported an increase in international customers, particularly from Mexico, Venezuela, Guatemala and Brazil. Retailers reported strong holiday and early January business, from 10 — 25% in sales increases over the same time period in 2009. Some indicated average sales up more than transactions. Restaurateurs reported a similar situation. VRD reported increases in numbers of children in the after school programs and a healthy increase in day passes ( +25 %) at the Nordic Center for snowshoeing and Nordic skiing. Members believe several reasons for the increases: early snow; increase in international guests; cold weather brings people into shops and restaurants; 2 hour free parking in the structures; free parking on the Frontage Road in West Vail. -Other Business Staff presented the Town of Vail Economic Indicators Summary as of December 2010. A copy of the report can be found on the Economic Development page of www.vailgov.com Andy Daly invited Vail Economic Advisory Council members to join the discussion at a joint meeting between the Vail Local Marketing District Advisory Council and the Commission on Special Events regarding increasing the effectiveness of marketing and special event expenditures by further aligning the structure of the two organizations. That meeting is scheduled for Thursday, January 20` at 10:00 a.m. — Noon in the Gore Creek Room at the Lion Square Lodge. Staff was requested to follow up with Adam Sutner of Vail Mountain Marketing to see if there are plans to market or provide additional activities after the mountain closes on April 24. Adam confirmed there are not plans for either at this time. -Next Meeting Tuesday, February 8, 8:00 — 10:00 a.m. in the Caribou /Pronghorn Room at The Antlers. 1/18/2011 3 -2 -2 M6,4 1 M TOWN OF MOONIAIN Rf SfARCH Town of Vail Economic Indicators Summary: December 2010 Update (Based on data as of October 31, 2010) INTRODUCTION: This introduces a summary report of Vail Economic Indicators, updated in December 2010, once summer (May — October) data became available. This Indicators Summary is intended to provide an overview of recent economic activity and to serve as a benchmark from which future economic activity can be displayed and compared. These seasonal reports began in early 2009 when relevant data was gathered from various secondary sources for the date range of November 2004 through October 2008 and is now updated seasonally. The data is depicted by general category (Tourism, Real Estate, Town Revenue, Business Growth and Macroeconomics) and seasonally (Winter: November — April, Summer: May — October). It is presented in a chart format with this brief summary as a part of the Town of Vail 2010 Economic Development Strategic Plan and is limited in scope and accuracy by the availability of data from secondary sources, (thought to be accurate but not independently verified) and is best used as a general overview as a result OVERVIEW: The narrative overview below is supported by a more granular supporting chart (attached). All statistical comparisons are based on year- over -year comparisons as of October 31, 2010 vs. October 31, 2009, unless otherwise indicated: 1. Tourism Indicators have shown increases in the past year but fail to return to the levels of pre- recessionary times. Vail lodging occupancy showed an increase ( +7.76 %) from last season. Rate also increased ( +4.79 %) resulting in a change in overall revenues (from which lodging tax is collected). These results compared favorably to the overall MTRiP industry data set where occupancy ( +5.8 %) and rate ( +1.6 %) also increased but to a lesser extent than Vail. These increases show that pricing power is returning to the summer mountain travel marketplace, however when comparing these metrics to the summer of 2008 (prior to the economic downturn) occupancy is still down by 5.0% and rate is behind 1.3% in Vail. Transportation results provide a positive trend where travel through Denver International Airport increased ( +3.38 %) from last summer and while Eagle County Regional Airport was closed for a majority of last summer, showed a slight increase ( +1.23 %) in deplanements from 2008, contrary to the performance of lodging metrics. Traffic through the Tunnel decreased slightly (- 3.48 %), possibly due to the increase in gas prices from the previous summer ( +11.4 %). However tunnel traffic was at the same level as the summer of 2008 when gas prices were at their all -time high of $3.69 /gallon, 34% higher than this past summer, which show inconsistent correlations between gas prices and tunnel traffic and may have more to do with the greater economy, or shifts in between the drive (more proximate) and fly (more remote) markets. The number of vehicles in to the Vail parking structures increased slightly ( +3.5 %) as did the amount of cars on the Frontage Road and number of days the parking structures were full. Previously there was one day in the summer when the parking structures were full (4 of July) compared to 21 days in Vail Village and 14 days in Lionshead as was reported during the summer of 2010. This accounted for 4,853 cars parked on the Frontage Road. An array of special events took place in Vail during the summer months, which may account for some of the parking increases. Attendance /participation for some events increased as much as 150% while others decreased by 30 %. Overall Vail summer events accounted for 471,214 visitors, 1.4% more than the previous summer and 12.3% more than the summer of 2008. This increase in visitors due to special events and increased cars in Vail and the parking structures, did not translate in to more visitors in to the Vail Village ( -7.4 %) and Lionshead (- 10.8 %) Information Centers. Website visits to www.vail.com increased dramatically from last summer ( +41.2 %) due in part to the Vail Local Marketing District's effort to drive Internet traffic to the site. Tourism indicators show inconsistent trends but overall are moving in a positive direction and attribute to tangible increases in sales and lodging tax (see Town Revenue Metrics). 2. Real Estate Indicators show significant increases in all areas during the summer of 2010 compared to the previous summer, which reflected a weak real estate market. A substantial amount of newly constructed luxury units in Lionshead and Vail Village were sold, which caused a dramatic increase in the number of real estate transactions ( +69.6 %), average price per transaction ( +89.8 %), average price per square foot ( +86.6 %) and most noteworthy, total gross real estate sales ( +221.8 %). In particular, multiple units at the newly constructed and completed Ritz Carlton Vail and Solaris were sold as well as strong sales of the recently completed Landmark Vail Condominiums, Manor Vail Lodge and Arrabelle at Vail Square. However, comparing summer 2010 to summer 2008, where more comparable real estate transactions took place, provides a longer term perspective and the following observations; the number of transactions ( +10.6 %) and gross sales have increased ( +30.9 %) but the price per square foot ( -21.1 %), average price per transaction (- 15.8 %) and list to sale price ratio ( -7.7 %) have all decreased, which may indicate that property values have declined even in 1/18/2011 3-3-1 Attachment: Vail Economic Indicators Table Ulm TOWN *VAIL MQU NIAIN TRAVEL RESFAkCN E'a9L =FtftM newly constructed luxury properties at the base of the ski mountain. The effect of these inconsistent spikes and dips in Vail real estate sales caused by new construction is expected to continue next season but to a lesser extent due to additional sales of units at the Four Seasons Vail and other properties that were unsold at the time of their completion but expect to be sold during the 2010/2011 winter season. No new real estate developments will be impacting Vail real estate for the short term future, with the exception of EverVail that continues to be delayed. 3. Town Revenue Metrics include sales tax, construction use tax, property tax and real estate transfer tax revenues along with general fund balance as an indicator of the Town's level of reserves. a. Sales tax is segmented by business type (retail, lodging and food /beverage) and further broken down geographically by Vail neighborhoods. All segments combined show a somewhat significant increase in overall sales tax revenue ( +10.1 %) following the previous ( 2009) summer season's sales tax revenue, which had declined dramatically (- 17.2 %) after three prior years of growth. Specifically lodging ( +20.4 %) and food and beverage ( +13.9 %) sales tax collections saw large year over year increases in 2010, while retail ( +1.7 %) increased less dramatically. When segmented by neighborhood, the Cascade Village under performed Vail Village and Lionshead by showing much smaller increases in lodging, ( +5.2% compared to +31.1 % in Lionshead and +22.0% in Vail Village) and declines in retail ( -5.0 %) where Vail Village ( +5.6 %) and Lionshead ( +6.3 %) both saw increases. A study conducted by MTRiP shows that the aggregate of comparable ski towns was up also season - over- season in both sales tax ( +0.6 %) and lodging tax ( +7.5 %), less than Vail's, which saw larger increases in sales tax ( +6.9 %) and lodging tax ( +20.4 %). After dramatic decreases in the 2009 season from the previous season, these increases are a positive indication of growing demand but are still down 8.9% from the pre- recessionary summer of 2008 and more comparable to 2006, prior to the opening and completion of many of Vail's new retail, restaurants and lodging properties. b. Annual Metrics are used instead of seasonal metrics to track construction use tax, property tax, real estate transfer tax and town reserves, and therefore are not available for analysis for this iteration of this summary. 4. BUSINESS GROWTH is based on broader county and national indicators, many of which are tracked on an annual basis and lag significantly. Most indicators are not available for this update, except Same Store Sales, which mirror the increases shown in sales tax collections ( +10.0 %) but are still lagging from the 2008 season ( -8.9 %) and Banking Deposits in Eagle County, which declined ( -2.8 %) from the previous reporting period (July 2008 — June 2009). 5. MACROECONOMICS: The Consumer Confidence Index (CCI) has proven to be an important indicator of subsequent discretionary spending, like vacation travel, and has historically hovered around its benchmark of 100 until mid 2008, and then dropped dramatically to a low of 35.3 during the 2008/2009 winter season. More recently it has rebounded to an average of 51.2 during May — October of 2009 and has hovered around this level through the May 2010 — October 2010 time frame (53.3) demonstrating continued apprehension about the outlook for the economy. While the CCI is a good measure of consumer spending, the financial markets demonstrate the broader business outlook and indicate subtle strength and a rebounding economy, from Wall Street and in the US Index of Key Economic Indicators. On a cautionary note, an increasing number of more conservative market watchers point to staggering worldwide debt, ongoing unemployment and an anemic housing market all pointing to a weak, inconsistent and fragile economy, which has yet to spark any significant change in demand for tourism or real estate, the two pillars upon which mountain resort economies are founded. On the tourism front, overall market strength should not be counted upon and an ongoing war for market share among competitive resorts will reward those who are best positioned more attentive, nimble, data driven and proactive than their competitors as they battle for consumers who are spoiled by several years of a buyer's market and likely to remain both frugal and fickle. This foundational data set and summary will be further updated and expanded upon seasonally, taking its place among the tools available to the Town, its various committees and the public it serves. —Q * 4 aAA;X­f- Ralf Garrison Director and Senior Analyst Mountain Travel Research Program 1/18/2011 3-3-2 Attachment: Vail Economic Indicators Table Data provided in tables was collected by the Town of Vail and Ml in Jan. 2009 and updated Dec. 2010 from a variety of secondary sources, which are thought to be accurate, but not independently verified and best used as a general overview as a result. Vail Emnomic Indicators: Tourism (2004 -2010) Indicator Source Focus Study Report Date ('04 -'OS) Data ('04 -'05 )' Report Date ('05 Data ('OS -b6) Report Date ('06 Data ('06 -'0]) Report Date ('0]- Data ('0] =08) Report Date ('08- Data ('08=09) Report Date ('09- Data (b9 -'10) '06) '0]) '08) '09) '10) Lodging Report: 11INP'. Booking Average humber of Winter (November'04- Winter (November Winter (November Winter (November Winter (November Winter (November 0 «apanoy o,Lems at 18 Vol 'o occupied April '05) N/A '05- Aprll'06) 59.6% '06- April'07) 60.3% '07- April '08) 58.6% '08- Aprll'09) 521 'o9- April 'l0) 54.40/0 lodging properties (1711 out of 3598) a er(May'05- Summer QvlaV '06- Summer (MaV '07- Summer QvlaV'08- Summer QvlaV '09- Summer(May'10- atober'OS) 39.1% October'05) 38.4 October'07) 39.4 October'08) 38.0% Octcber'09) 33.5 % atober'10) 36.1% Lodging Report : 11red)'. Booking Average nightly Wlnter(November'04- o inter(November Winter (November Wlmer(November Wlnter(November Wlmer(November Avenge Nightly oatterne at 18 Val1 "m rates N/A 05- Fprll'06) $363 '06- Fprll'07) $3]6 '07- April'08) $40] '08- April'09) $384 '09- Apolno) Room Rates lodging propert SaV'CS- Summer (MaV '06- Summer (MaV '07- Summer (MaV'08- Summer (MaV '09- Summer(MaV'10- $142 Octcber'06) $158 Octcber'07) $155 October'08) $155 October 09 $146 October 10) $153 CommaniN Vol Recreation Lumber of visitors Win ter(NOvember'o4- Winter (November Winter (November Annual(January'08 Annual Jmrary'o9 AYmual(January'l0 Center DlsMct to the DOLooIce Apol'g5) Not available '05- April'06 Not available '06- April'07) Not available December 08) December '09) December 1 Attendance Arena Summer(May'05- Sum ay '06- Sum ay '07- 80,000(aNtimate) 80,000(aNtimate) Not Available awber'05) Not available October' 06) Not available October' 07) Not available Vail Recreation Vlsltorstothe Vol Summer(May'05- Summer '06- Sum mer(May '07- Summer To '08- Summer (MaV '09- Summer(May'ho- DlsMct Golf Course October'OS) 23,000 October '06) 22,300 Oct 24,600 Noer'08) 24,993 3, er'09) 23,414 October'10) 23,332 Parking Counts TOV Lumber of vehicles Win terr(NOvember'04- Winter (November Winter (November Winter (November Winter(Nwember Winter (November Transportation In Vail Villager Apol'05) 332,424 '05- April '06) 325,972 '06- April '07) 342,417 '07 -April 08) 350,896 '08 -Apr11 '09) 288,307 '09- Apd1'10) 324,979 narking Structure Summer(MaV'05- Summer (May '06- Summer(May '07- Summer( May' 08 - Sum mer er (Mary '09- Summer(Mav'lo- 31 atober'05) Lot available Octcber'o6) Not available Octcber'07) Not available October'08) Not available Octcb'09) 297,349 October' 10) $603 T Lumber of vehicles Wlnter(NOvember'04- Winter (November Winter (November Winter (November Winter (Nwember Winter (November Transportation inuonshead April 'OS) 181,275 '05 -April '06) 176,716 '06 -April '07) 174,085 '07 -April '08) 184,505 '08 -April '09) 182,028 '09- Apd1'10) 187,045 narking Structure Summer(May'05- Summer( May' 06 - Summer '07- Summer( MaV' 08 - Summer '09- Summer pr y'10- 1233* (wnc October'05) Not available 06 Not available October Not available atober'08) Not available October '09) 218,482 atober'10) perking LOt nosed) TOV Lumber of vehicles Win ter(NOvember'04- Winter (November Winter (Nwember Winter (November Winter(November Winter (November Transportetlon on fromcge roads April '05) 4,712 '05 - ALL 1 '06) 9,406 '06 -April '07) N/A '07 -April '08) 5,947 '08 - ALL 1 '09) 1,836 '09 - ALL l '10) 7,95 Summer(MaV'05- JULY 4TH Summer(May '06- JULY 4TH Summer(MaV '07- JULY 4TH Sum mer(MaV'08- JULY 4TH Sum (May '09- JULY 4TH Summer(MaV'10- 4,853 October'05) Octz r October'07) amber Z) October'09) October'I0) TOV Lumber of days Wlnter(NOvember'o4- Winter (November Winter (NOVember Winter(NOvember Winter(November Winter (NOvember Transportetlon narking structures April '05) 43 /VV 13 /LH '05 -April '06) 45 /VV 27/LH '06 -April '07) 66 /VV 31 /LH '07- April '08) 58 /VV 25 /LH 'pg -Apr11 '09) 50 /VV 25 /LH '09- Apd1'10) 40 /VV 20 /LH full Summer (Mayp5- Summer (May ' 06 - Sum (My '07- Summer(May'08- Summer (May '09- Summer(May'10- October '05) JULY 4TH Octcber'o6) JULY 4TH Octcber'a]) JULY 4TH October JULY 411H October '09) JULY 411H October '10) 21 /VV 14 /LH Airport DIA Lumber of people Win ter(November'04- Winter (November Winter (November Winter (November Winter(November Winter (November Statistics Into Denver April 'OS) 9,00],]32 '05 -April '06) 10,894,042 '06 -Apr11 '07) 11,359,350 '07 -April '08) 12,005,37/ '08 -Apr11 '09) 11,612,990 '09 -Apri l '10) 11,848,627 Intematlonal Summer(May'05- Summer (May '06- Summer (May '07- Summer (May'o8- er(May 'o9- Summer(May'10- Almort mm atober'05) 11,561,666 October 12,639,845 Octcber'07) 13,23],818 October 13,600,0]9 October '09) 13,51],]92 October'10) 13,974,281 agie County Lumber of people Win ter(NOvember'04- Winter (Nov ember Winter (November Winter(November Winter (November Winter (November Airport Into Eagle County April '95) 175,641 '05 -April '96) 180,086 '06 - ALL 1 '07) 179,620 '07- April '08) 181,602 ;08 -April '09) 173,333 '09 -April '10) 166,409 Airport Summer (M Summer( May' 06 - Summer '07- Summer (M Summer(May X09- 8,434(airportwas�mmer(May'10- October'05) 39,7/9 Octcber'06 3],]50 Oct='07) 48;043 October `08) 3],300 Octcber'09) closed May- Aug.)aNber'10) 3],]60 Vail Information Communlcatlon Lumber ofvlslts to Winter (November '04- Winter (November Winter (Nov Winter (No vember Winter (Nwember Winter (NOveLuber Center Visits Department the Vall Village April 05) Not available '05- April'06) Not available '06- April '07) 20,004 '07- Apr11'08) 18,061 '08- Apri1 '09) 20,949 '09- April '10) 17,483 Information Center Sum mer(May'05- Summer(May ' 06 - Summer (May '07- Summer( MaV' 08 - Summer (May '09- Summer pry'10- October'05) Not available October '05) 25,032 October '07) 22,658 October'08) 26,098 Ocitz'09) 24,]]4 October'10) 24,168 Communkatlon Lumber of -i" to Win ter(NOvember'o4- Winter (November Winter (November Winter(NOvember Winter (November Winter (NOvember Department the Llonshead April '05) Not available '05 -April '06) Not available '06 -April '07) 14,319 '07 -April '08) 12,575 '08 -April '09) 11,576 '09 -April '10) 10,616 Information Center Vail Emnomic Indl�I - -rlfim I)INC!UH �egl II L,t MOdlned'. 1/10/2011 3 -3 -3 Data provided in tables was collected by the Town of Vail and MTRiP in Jan. 2009 and updated Dec. 2010 from a variety of secondary sources, which are thought to be accurate, but not independently verified and best used as a general overview as a result. Indicator Source Focus Study Report Date ('04-'05) Data ('04 -'OS) Report Date ('05 Data ('OS -'06) Report Date ('06 Data ('06 -'0]) Report Date ('0]- Data ('0] -'08) Report Date ('08- Data ('08 -'09) Report Date ('09- Data ('09 -'10) '06) '0]) '08) '09) '10) S,mmer(May'05- Sim, ,(May '06- SLmmer(May '07- Summsr(MaV'08- Summer (MaV '09- SLmmer(MaV'10- atober'OS) Not available October '06) 31,103 October '07) 25,340 atober'08) 19,319 October '09) 18,000 CYtober'10) x],23] Tunnel Tr,fifio MOT Vumber of vehicles Win ter(NOVembe, '04- Wlnter(November winter(Nv mber Wlnter(November Wlnter(November Winter (November Dun the Aprll'OS) 3,611,698 W Aprll'06) 5,406,952 '06- Aprll'he 5,694,884 '07- Aprll'08) 5,]09,00] '08- Fprll'09) 5,]30,889 '09- Aprll'10) 5,690,262 - ISenhower Summer (May 5,488,399 Summer(May '06- 5,585,158 Summer(May '07- 6,0]4,02] Summer(May'08- 5,821,092 SLmmer(M y '09- 6,043,]20 Mmmer(MaV'10- 5,833,139 Tunnel/Vail Pass arober'05) Octcber'06) Octcber'07) CYtober'08) Octcber'09) CYtober'10) Holiday Timing Calendar - aster', Date Sunday Mai 27, 2005 Sunday April 16, 2006 Sunday April 8, 2007 Sunday March 23, 2008 Sunday April 12, 2009 Sunday April 4, 2010 4tfrof JuIV Day of July 4, 2x05 Monody 4, 2006 Tuesday July 4, 2007 Wednesday ]uIV 4, 2x08 Friday July 4, 2009 Saturday July 4, 2010 Sunday the Wee Christmas DaV Of December 25, 2005 December 25, December 25,2006 the week week Sunday 2006 Monday Tuesday December 25, 2007 Wednesday December 25, 2008 Thursday December 25, 2009 Friday t Internet (Web) Vail Resorts Thurber of visits to Winer (NOvember'04- Winter (November Winter (11 ember Winter (November Winter (November Winter (November Usage vall.o,m Aprll'05) Not available '05- April '06) Not available '06 -April '07) 2,057,450 '07- Aprll'08) 2,530,037 '08- Aprl1 '09) 2,N1,647 b9 Apr11'10 2,555,557 eesortswet Ite) Summer (May Summer(May ' 06 - Summer (May '07- Sum mer(May'08- mer(May '09- Summer(May'10- m CYtober'OS) Not available Octcber'06) 552,535 Octcber'07) 537,553 CYtober'08) 555,305 Odcber'09) 535,755 CYtober'10) 810,060 Fuel Prices ErergV Average price of Winter (NOvember'04- Winter(November Winter (Nov ember Wlnter(NOvember Winter (November Winter(November Information gasoline per gallon April '0 $1.94 '05-April $2.33 '06- April'07) $2.33 '07- Aprll'08) $3.03 '08- Fprll'09) $1.83 09 Fprll 'no $2.85 Administration FJSD)In Colorado e of weekly Summer(MaV'C6- Summer '05- (May 07- Summer( MaV' 08 - summer(May '09- SLmmer(MaV'10- veragee Corder '05) $2,44 O' 06) $2.7] October' 07) $3.00 CYtober'08) $3.69 October'09) $2,94 CYtober'10) $2.]6 Event 1lghllne Sports & February 58, 2005 - ebruary 2628, VRI produced the - ebruary 18-20, February 35, 2008 Attendance mertainment Carnival (Unhadltlonal Mktg) 3,500 2006 event -no W available 2007 (VVTCB) 7'000 Thai Sports) 10,000 =eb 22 -24, 27, 2J09 15,000 Feb 1420, 2010 20,000 Vail Valley January 12 -15, January 11 -14, - oundatlon The Session January 13 16,2005 10,000 2006 14,750 2007 15,000 February 7- 10,2000 17,000 - vent did not oaur Event did not oaur Event did not ocwr Event did not oaur Ski and Srowboard Junior OlVmpl's 7 160 Athletes, 165 Athletes Event was held in 175 Athletes Club Vall days /1st Week In 2006 w /parents +coahes 2006'. Vail BC w /parents +coaches 2007 Aspen 2000 w /parents+ vlarch 5- 11,2009 160 athletes Maroh 3 ,-11 170 athletes vardr each year 256 total 265 total coaches 280 total Vail Film Institute Vail Film Festival March 31 -April 3, 2005 10,000 varch 30- April 2, 12,000 varch 29 April 1, 14,000 April 36, 2008 12,500 April 2 -5, 2009 12,000 April 14, 2010 14,000 2006 2007 Taste of Vail Taste of Vail April 69, 2006 1 Not available Apri158, 2006 4,000 April 11- 14,2007 7,000 Marc 29 April 1, 7,000 April I- 4,2009 5,000 Fprll 8- 10,2010 6,600 1ighl lne Sports & Spring Bad, to Vail April 4-16, 2005 50,000 April 3-16, 2006 24,000 April 2 -15, 2007 26,000 April 7 -13, 2108 30,000 April 1319, 2009 30,000+ April l2- 18,2010 90,000 Ertertainment Vail Val IV Teva Mountain June 1 -5, 2005 12,000 (snowl) vaV 31 -June 4, 28,000 vaV 3} June 3, 30,000 June 4 -8, 2008 35,000 June 4 -7, 2109 90 000 -VVF is June 3 -6, 2010 35,037 tlon Games 2006 2007 w - ounda promote <Ing of the 516 participants +25 560 participants +2.5 622 parti 650 participants + cipants +2.5 764 participants <Ing of the on Fa June 17 -19, 2005 estimated entourage June 16-18, 2006 estimated entourage June 1517, 2007 estimated entourage June 1315, 2000 25 estimated June 1921, 2009 +25 entourage June 18-20, 2110 828 participants vounta'm Volleyball per player per player per player entourage per player per player Vail Chamber. and south of me 3uslness Ecrder f the 2005 Not implemented 2006 Not implemented 2007 Not implemented 2000 Not implemented June 20, 2009 1,000 June 12, 2010 2,500 Association Vail Valley lot Summer 7 Tuesdays, June 14 26,400 10 Tuesdays'. June 33,063 9 Tuesdays'. June 32,625 9 Tuesdays'. June 28 668 9 Tuesday'. June 16 36,629 Tuesdays, Jun 15 31,865 - oundatlon VI hts Jul 00 2005 13 Audust 29 19 Au dust 21 I5- AU ust 19 2008 And 18 Ar 24 June 18- June 15 June 22- September veadow Drive Vail Farmers' June 19 Se June 21 -Sept 20, June 29 Sep 19; 7 arfiershlp varket (14 Markets) 75,000 September 100,000 2007 September Ma 120,000 21, x ts (14 130;000 2009 (14 markets) 140,000 2010 Y40,000 2006 (14 M ark arketS) 2007 Q4 Markets) Markets) Vail Chamber and June 23, 2007 (1st 3usiness 3BQ Bonanza 2005 Not implemented 2006 Not implemented year) 1,250 June 21, 2008 3,500 June 27, 2009 4,200 June 26,2010 5,800 Association vallEwno ,md I- TOunsm I /IL<nNil =aW 217 tastMOdlffed'. 1110)2011 3 -3 -4 Data provided in tables was collected by the Town of Vail and MTRiP in Jan. 2009 and updated Dec. 2010 from a variety of secondary sources, which are thought to be accurate. but not independently verified and best used as a general overview as a result. Indicator Source Focus Study Report Date ('04'05) Data ('04 -'OS) Report Date ('OS Data ('OS -'06) Report Date ('06 Data ('06 -'07) Report Date ('07- Data ('07 - -'08) Report Date ('08- Data ('08 -'09) Report Date ('09- Data ('09 -'10) '06) '07) '08) '09) '10) Colorado Lac(.- Vail Lacrassp 92 teams June 24 JuIV 4, 102 teams June 27- Jury 4„ 100 teams June 28- only 6, 104 teams June 26 -July S, 95 Teams 103 Teams 17,500 omotlons Shootout June 25- ]uIV 4, 2005 18,330 total 2006 16,000 total 2007 17,116 total 2000 18,819 total 2009 16,000 total June 25 Jul 4, 4710 total agle Valley America DaVS Monday, July 4, 2005 25,000 Tuesday, July 4, 30,000 Wednesday, July 4, 35,000 Friday, July 4, 2008 35,000 Saturday, 2uIV 4, 40,000 Sunday, 2uIV 4, 35,500 _vents 2006 2007 2009 x1 10 3mvol (G2FA 18 performances'. June 19 performances'. 19 performances'. 20 performances'. 19 Performances 3-'l 31-1 35,068 June 28- Jury 28, 36,727 June 27- Jury 27, 32,649 June 25 -July 25, 34,868 (GRFA)'. ]uly l- 34,530 June 25 Arg3 41,469 26-mly 29, 2005 only) 2006 2007 2000 Aug 4, 2009 Vcil Intematlma Dance F tival 7 performances. 8 perforrnanc,s. 7 performances. 8 Performances Vail Valley 5 performances'. ]uIV 30 (GRFA 9,550 ]uIV30- August 13, 11,654 July 29 August 12, 12,249 ]uIV 27- AU9ust 9, 11,698 (GRFA)'. ]uIV 27- 17,500 JuIV 25 Aug 10 20,609 = oundatlon cerfcrmances August 7, 2005 2006 2007 2000 Aug 10 ]uIV 3- Aso 14 (7 Nom River Ranch C Aftemmn 2005 Not implemented 2006 Not implemented 2007 Not implemented Summer2008'. (1st 2,500 = rldays'. Blue Creek 3500 6SATLRDAV01 July 2975 Club Vear. 5 FFlboys) 7roducdms 10-AUg 14, 2010 mom River Ranch 8ocky Mountain 2005 Not implemented 2006 Not implemented 2007 Not implemented 'mgt 1 -3, 2008'. 8,000 Aug 21 -23, 2009 5000 JuIV 1518, 2010 5000 Antique Festival (1st year) 276 teams 351 teams 309 teams 300 teams 300 teams 8100 Team JuIV 31- Aug 2, "1 3v3 Soccer August 5-7, 2005 6293 inclutling August 46, 2006 7371 inclutling August 35, 200] 6489 inclutling August 1 -3, 2008 6300 inclutling inclutling Jul 3o-A so 1, 2010 288 Teams Championships Intl spectators spectators spectators spectators 2009 spectators agle Valley August1921, 2005'. August 11 -13, August 10.12, August 8- 10,2008'. -vents Vail Arts Festival LHus 7,000 2006'. ELH 5,000 2007'. ELH Circle 3,500 ELlonshead Circle 3,000 June 26- 28,x)09 9,000 June 2527, x)10 8,500 rrrd� Va nda 11 ]azz Jazz @ the Market 9 Sundays 2,]00 9 Sundays 2,]00 9 Sundays 2 2 ,]00 9 Sundays 2,]00 10 Sundays'. June 2,700 9Sundays, Juno 3,000 = outlon 3AUg 30, 2009 Pug 29 /no July 4 Vail Jazz Jazz @ Vail Sqe 2005 Not implemented 2006 Not implemented 2007 Not implemented 2000 (1st Vear'. 5 3,000 5 Thursdays. Pug 6 3,500 5 ThursdaVS, Aug 5 uar - oundat lon Sept 3, 2009 Sop 2 2,700 Vail Jazz Vail ]azz Party September 2 -5, 2005 3,500 September 1-4, 3,500 August 31 3,500 August 29-Sept 1, 3,500 Sept 3 - 7, 2009 4,000 Sep 2 -6, 2010 4,800 = oundatlon 2006 September 3, 2007 2000 Vail Jazz Vcil D,.F Festival'. - oundatlon events 2005 6,200 2006 6,200 2007 6,200 2000 9,200 Summer 2009 10,200 Summer 2010 10,500 ombined Vail Valley 200506 (10 2006-07 (il 2007 -08 j6 2008 - 25,000 09 (10 2]032010 (9 A00 =oundatlon St ea set Bt 2]0405 (13 concerts) 31,500 once be 28500 oncebe 26,500 concerts) 22,600 one rts) oncerts) 22 1ighllne Sports & Gourmet on Gore September 3, 2005 7,000 Did not occur In Not instituted September 1 -2, 12,500 August 29 -31, 2008 18,000 Sept 4 -6, 2009 20,000 Sept 35, 2010 20,000- 30,000 - metcummt ( 2006 2007 1igh1lne Sports & Oktobertest September 911 & 16- 80,000 September 8-10 & 90,000 September 7-9 @ 90,000 September 57 & 12 40,000 Sept 11 -13 & 13x), qg 000+ Sept 10-12 & 17 -19, 4g 000 - 50,000 - ntertainment 18, 2105 1517, 2006 14-16, 2007 14, x108 2009 4110 ionshead 250 partidpents, 275 participants, merchant's Colorado Qand September 12 -17, 2005 400 Contours September 17 21, 250 participants, no September 16-x1, 250 participants, no September 1520, 1,250 C n-l Sept 17 -18, 2003 1,000 Sept 16-17, 2010 12 Participants Association spectators 2006 contours 2007 contours 2000 spectators 1200 Spectators Jnllmltsd VaII Symposium Adventure Speaker Series (6 each 2006 Not implemented 2006 725 2007 1,152 20013 858 2009 1,007 x110 777 tobe Vail Symposium Art of the Book 2005 Not implemented 2006 Not implemented 2007 Not implemented -22008(-20 &27, 20 Summer 2009 Did not occur Summer 2010 Did not0¢ur 000 (first Vear) Vail Valley Soccer 2,200 players 2,200 players 2,000 players 1,800 players 1,500 playas 1980 players Club Vall Challenge Cup OCtober12, 2005 4,000 Spectators October 7b;2006 q,000 spectators October 6- 7,2007 3,500 spectators October 45, 2008 3,200Spectators Summer 2009 3,500 spectators Summer 2010 3,500 -4000 spectators Ski and Sno A oard ml SNap October 2329, 2005 3,000 October 27,28, 3,000 October 26-27, 3,500 November 7-8, 2000 4,000 Vovember 2009 1,700 November 2010 2,100 Club Vall 2006 2007 1lghllne Sports& Dece mber 417, Dece mber 3-16, December 8-15, ntertalnmmI mow Daze 2005 Not implemented 2006 (1st Vear) 15,000 2007 20,000 2000 17,500 December 2009 1 20,000 December 2010 N/A Economic Ind-c- rr,m- t /tNC!U tl Val E f7 LartMOdlned wag 3 0 1/10/2011 3 -3 -5 Data provitletl in tables was collecletl by the Town o1 Vail antl MTR,P in Jan. 2009 antl upc.. Dec. 2010 from —rely of secontlary sources, which are thought to tie accurate, but not,,d,p,,d,Mly -n ietl antl tied usetl as a general overview as a —mil. Vail E—amic Indicators: Real ESbte(2004 -2010) Indicator Saurre Description Report Date ('04 -'05) Data ('04-'05) R.W,t Date ('0S-'06) Data ('05-'06) Report Date ('06 -'07) Data ('06-0]) Report Date ('07 Y08) Data ('0] -'08) Report Date ('08-'09) Data ('08-'09) Re ,tDate ('09-'10) Data ('09-'10) Real Estate Eagle County Total rummer of Winter (tub— es'g4- Winter (NCvember'C6- Winter(NOvemtes'06- Winter (tub— er'07- Winter (NOvemtes'08- Winter (NCvember'03- Sales Assms eafi,e Real Estate Atari 05) 297 April 05) 174 Abut '07) 175 Atari M) 177 April '03) 97 April 10) 121 Transactions Summer (May ' 05 - Slmmer(May'X - Sir mmer(May'07- Summer (MaV' Summer (MaV'09- Slmmer(MaV10- wlihln Vail e X 05) 270 a ��) 217 ( I=rur�0J) 158 ( tm=rcr'08) 149 (tcber'09) 115 CYI= X 10) 195 Sale Rice Eagle County Average sale price � t y 1_ eemter'04- Winter (NCVember'05- Winter (NOvemtes'06- Winter (NOvemter pad 1$1,641,593 '07- Winter0 vemtes'08- Wlntes(NCvember'0) - Fssyssx'sOlflce of Real Estate C) $ 778,298 Apd1�) $1,168,249 All07) $2,169,933 Aa11$2,258,364 Apr11 3) $2,854;325 10Wa�aW O mmer aVSummer (May07Summer aV08Summer (MaV'09SlmmerQvlaV10r'OS) $1,641,107 0.tber'�) $1,391,526 at�er'07) $1,370,692 atcber'08) $2,508,787 atcber'09) $1,112,728.70 �,�) $2,111,644.10 R Me, Squae Eagle COunN Average pdot � m tocer lnter(NOe Wlnter(November'05- Winter (NOvemtes'06- Wlnter(Iu), S'0]- Wlnter(Nov,ni 08- Wlntes(November'A) ot Assmssx'e Office Real Estate Per rll'Q5) $60 2 Apol,� $727 Aprll'07) $9M Pprll'M) $ Aarll'P) $1,103 rll'r0) $ 791 spuare foot mer (MaVOS- $656. Simmer (MaV'�- $831 Summer (MaV'07- $726 Summer (MaV08$1,344 mmer (MaV'09- $568 Simmer (MaV'10- $1,060 'OS) 0.tdcer'�) (ktcber'07) (ktcber'08) (ktcber'09) 0.RUer'10) Grass Sales Eagle County nota1 QC55 Slee Wlnter(Novemter'04- Wlnter(November'05- Wlnter(Novemter'05- Winter( -emb S'0]- Winter(N), ember S' 08- Winter (NCVember'0)- Assyssx's Ami TJSD) Apr11 '05) $229,451,000 Pan ) $203,275,300 Abui '07) $379,738,200 Aa111) $399,730,500 Acul '03) $276,869,500 April IS) $198,632,700 Summer(May'05- Summer jMay'�- Summer(May'07- Summer( May' 08 - Summer (May '09- SlmmerjMay'10- atober'05) $443,098,800 atZer ��) $301,961,100 atcber � 07) $216,569,400 atcber X $373,809,300 atcber � Q9J $127,963,800 at er X 10) $411,770 ,600 Rice Ratio Land Title Average ratio of Winter (Novembr'04- Winter (NCvember'05- Winter (Novembr'06- Winter (November Winter(INbvembr'08- Winter (NCvember'0) - Glamntee Ilst aloe to sale April '05) 97.50% Apdi'05) 94.90E Apr11 '07) 95.3 W/o A 96.0(1 A '03) 91.83% April 10) 85.44x/0 Company price Summer( May' 05 - Summer (May'�- Summer(May'07- Summer( May' 08 - Summer(MaV'09- 9lmmer(MaV'10- (k r � I 95.2 % Caber �D5) 94.50 % (ktcber � 94.4 W/o nd� X 97.4 W/o �Z X 85.12 % � X 89.92 Residential Eagle County N of [ tocer lnt emter'04- Wlnt2r(November'05- Winter( vemtes'06- Wlnter(November 07- Wlnter(November 08- Wlnt� (November'A) Roperties Sold 1,ess.r Otflce reellcentlal pril 'C6) 184 Acu A, 165 April '07) 163 Aa ,M) 143 April '03) 82 Fpd1'10) 113 properties sold ummer(Ma VOS- 243 Simmer (MaV'�- 200 Summer (MaV'07- 144 Summer (MaV08156 Summer (MaV'09- 98 Simmer (May'10- 194 k'OS) at er'�) atcber'07) atcber'08) (ktober' ClYOmer'10) Cammacial Eagle County IWmLSOf Winter (Uvvemter'g4 Wlnter(November'05- Winter (NOvemtes'06- Win ter(November 07- Winter (November 08- Winter (November '03- RopertiesSOld 1,e sv'sOlnce a merdal Apr11 'QS) 107 ppol'') 5 Apr11 'o]) 10 Apr11 'M) 11 A(XII '03) 15 Fpol'1o) 8 properties sold Summer(May'OS- Simmer (MaV'� Summer (May'07- Summer( May' 08 - Summer(May'09- Slmmer(May no (ktcber'OS) 2J atd�er'fs) 2 atcber'07) y (ktcber'08) 6 (ktcber'09) 1/ 0.trmer l0) 1 Dwellingunits Community I of fal (January'05- M-aT`nuary '06- Fry ual (]arua'07- Amual (]aruary'M- Fual paruary'a Mrual (bnuary 'lq- CanNt ted tAvelopment ad]tlorel cb ellin, mber'05) L�cen S'06) ember'07) December') ember'03) L)eceai 10) IDApartment rnits constructed 0 9 24 75 59 Vot AVailab7e Hotel/ [partment mmunity Nantes of Annual (]aruary'Q5- Mrual (bnuary '06- Amual (Jaruary'07- rual paruary'� Annual (]aruary'o9 f emi unuary '10- A,'— dation velcpment ad]Itlorel Mtzl December'05 20 L�cen S'06) 1 December'07) ember'T) December '03) 2 '10) Vo t Available Units units constructed Canstaictetl Fractional Fee Community Nantes of Annual (Jaruary'C6- Mrual (January Pal (]aruary'07- Pal paruary'� Pal (Jaruary'03- M-al (January'10- Units E,velepment ad]Itlorel December'C6) 0 Decemt,r'06) 0 December'07) 0 December') 0 December'03) 0 D?cemter'10) Not Available Canstrictetl tApartment hachonal fee units constructed Net New Community Annual (Jarua N=_t lrew ry'Q5- Ml Tanuary'06- Amual (.la 07- ruary' Amual (]aruary'�- Amual (]aruary nuary '10- 'm- Mrual (b Cammacial D=_velcpment Commercial December'05) 0 -a L�cemL S'06) 9 � 0 December -a 36,20l Decembes(ID) 24,568N, De r ) 1,552st - m S'10) lot Available Squae Footage L�partment Square Footage Cm tooted vall E Imlc lndcatrs'. Real Es ' 'MCrUi i Fa} a f7 actM,do,d'. 1/10 /dil1 3 -3 -6 Oata provided in tables was collected by the Town of Vail antl MTRiP in Jan. 2009 antl updated Dec. 2010 from --y of secondary sources, which are thought to be accurate, but not ,d,p,,d -I verAietl antl best usetl as a general overview as a resutl. Veil ECVeom is Iedicamrs: Tawu Reveeue(3104 -2010) Indicator Source D- l-iption Report D.N, C 4-'05) Date ('04'05) Report Date ('O1.) Date ('OS -'06) Report Dete ('06 -'O7) Date ('06 -'07) Report Dete ('01.) Dete ('07 - Report Dete ('08' ) Dete ( W-'09) Report D.N, ('04'10) Ddte ('04'10) R Vail Village IV Arraunt VNn'(NOVembe,'0', $1959692 Win'(Noverrbe,'05 $2150 �$ NAnter(NOVembe,% NWn'(Noverrbe,'07- $2102116 Wn'(Noverrbe,'08- $1598 TI1 Wn'(Noverrbe,'09- Department collected (USD) April 'CS) April '06) April '07) April '08) April '09) April '10) Smmer (MaY A CS- Sumrrzr (May' 06- Smme, (May'07- Atmrre,(May 1. '08- Sumaer(May'09- Sumrrzr(May'10- Op e' Octbe,'06) 5109,091 Cttbe,'07) 57.,998 .-le,'0.) %.' Ocrober'09) 05) $707, &`73,505 Ocrober'10) $605,]05 i T U. -head IV Fnance Arraunt VNn'(Novembe,'04- $699826 W,'(Noverrbe,'05 $6811 NA nter (Novembe,'06- $]00911 Wn'(Noverdae,'07- $856906 Wn'(Noverrbe,'08- $828915 Wn'(Noverrber'09- at $883550 Depment ,Ileled(USD) Apnl'05) April '06) 292 Apnl'07) April '08) April '09) April '10) Smmer(May D5- Sumrre,(May'06- Smme,(May'07- Sumrre,(May'08- Sumrre,(May'09- Sumrrer(May'10- S z Cctobe,'05) $146,560 Octobe,'06) $154,904 Cttobe,'07) $151,560 Octobe,'0.) $210,343 Octobe,'09) $107,175 Octobe,'10) $198,885 777ade/E. TOV rnance Arrounc Winter (November 04- Wn' (Noverrbe,'01 W ter (November n6- w�ntm (Noverfbe,'07 W' n (Noverrbe,'08- Wn' (Noverfne,'o9- Vail /saad -- Department cone-d (USD) April '05) $1,038,901 April 'o6) $1,109,]81 Apnl '07) April '08) $1,192,]03 April 'o9) $1,15,]89 April '10) $1,09,669 &W. Vail SLmmer (M 05 Sumrrzr (May'06- SLmmer (May 07 Sumrrzr (May'08- Sumrrzr ("lay '93- Sumrrzr(May'10- Cttrber'05) $6]1,503 Octobe,'06) $7W,58] abobe,'07) $712,127 Ocrobu'98) $ .,- Octrber'o9) $680,951 October'l0) $661,JI5 Vail village IVFnance Arroune VNnter(Novembe, 04- Ndn'(NoveAte,'05- N4 nter(November'06- Wnte (Noverrber'O7- W,' MOVeAter'08- WntxMoverrbe,'09- Department collected (USD) April 'CS) $1,819,656 AP,I '06) $2,021,717 April '07) $2,090,189 APnI '08) $2,147,2% April '09) $1,849,$45 APr '10) $1,792,]53 S L a SLmmer (May 'CS- Sum (M 06 SLmmer (May 07 Sum Sum - Sumrrzr(May'10- Cttober'05) $377,998 October'06) $388,552 atober'07) $414,]89 Ocrobu'98) $446,399 Ocrober'09) $330,]19 Octiter'10) $403,340 I t uoashead TOVrnance Arroune W n'(NOVember'04- Wnm MoveAter'05- vm n'(No,mber 06- w�n'Moverfner'07 Wn' (N overfner'08- Win'(Noverfner'09- C 0 Department collected (USD) April '05) $1,211,828 April '06) $1 April '07) $1'448,205 Apnl '08) $1,590,51] Apnl '09) $1,367,]3] April '10) $1,499,15] 9 S Smmer (May '01 Sumrrer(May'06- Smmer(May'07- Sumrrzr(May'08- Sumrre,(May'09- Sumrrer(May'10- abober'CS) $24],305 October 067 $282,591 Cttober'07) $323,812 October 08 $321,648 Ocrober'A9) $261,2]2 October 10) 5342,553 n T 9 x Cascade /E. IV Fnance Arraunt W nter (November'04- $861,732 Wn'(Noverrber'05 $911,909 NA nter (November'06 - $1,062,423 Wn'(Noverrber'07- $1,091,5]9 Wn'(Noverrber'08- $807,303 Wn'(Noverrber'09- 0,541 Vail / sandstone Department colle- d(USD) April '05) A n 06) A l ' nl'07) April 08 April '09 A nl '10) i &w.-I SLmmer(May' Sumrrer(May'06- Smmer(May'07- At (MI 08- Sumrrer(May'09- Sum-r(May'to- Cttober'Q5) $2]6,491 October o( $294,382 C tober'07) October 0.) $308,92] October'09) $219,353 October 10) $230,6]2 veil Village IV Fnance Amount ter (N $1 Win'(November'CS- $1]09]31 Pa (November'06- $18656]U Win'(Nove S rrber'O7- $18075E0 Win'(November'08- $1 R3 ]38 Win'(November'09- $16R 066 Department collected (USD) April 'CS) April '06) Apr 7J April '08) Apr '09) April '10) B SLmmer(May'05- Sumrrzr (May' 06- er(May'07- Sumrrzr(May'08- Sumrrer(May'09- Sumrrer(May'10IF 0 (krober05) $747,920 October'06) $777,970 er'07) $86],240 Ocrober'08) $8]2,56] Ocrober'09) $741,050 Ocrober'10) $843,]54 O U. -head IVFnance A mou nt NA n' (November'04- W,'(NoveAter'05- (November'06- Wn'(NoveAter'07- Wn'MoveAter'o8- Wn'MoveAter'090 Department collected (USD) APnI 'CS) , APnI '06) , 7) , AP08) ,AP09) $581,408 AP '10) $586,084 e SLmmer (May'CS- Sumrrzr (May'06- er (May'O7- Sumrrzr (May b8- Sumrrzr (May09Sumrrzr(May10abober'05) $161,611 October'06) $1]2,]60 r'07) $22],858 Octber') Octber'99) $245,649 October'10) $275,92] & 9 C@scade /E. IV Fnance Amount NA nter(No,mber'04- $382326 Wn'(Noverrber'05- $4585 (November'06- $445549 Wn'(November'07- $419821 Wn'(November'08- $357009 Wn'(NOVember'09 /sandstone Department colle -d (USD) A nl'05 A nl '06 7 A nl '08 A nl '09 &W. Veil SLmmer (May'CS- Sumrrzr (May'06- PS (May'97- Sumrrzr (May'08- Sumrrer('lay (May10 0.'rober05) October n6) $321,019 er'07) $335,263 October'(( $28,244 Ocrober'09) $22,W9 M,147 $255,147 IV Finance Sales tas % III Y r 2005 us. MI I vl I Yea 2006 vs, full Fall Y r 2007 us. MI I vl I Yea 2008 vs. full vl I Yea 2009 vs. full vl I Yea 2010 vs. full Department Increas year 2004 6 ' 6 � yea 2005 0 " year 2006 6 yea 2007 3- yea 2008 - 13'8^ yea 2009 Not GVailable Tote) sales Tax vs. CPI % Increab, Full Y r 2005 us. 111 2 vl Yea 006 vs. full Full Y r 2007 us. MI vl Yea 2008 vs: full vl I Yea 2009 vs. full vl Yea 2010 vs. full IrrTlation es Measured by year 2004 3.4 1 yea 2005 3.2^� year 2006 2.0 yea 2007 3.8^� yea 2008 -0.4 yea 2009 Not -1- CPI Sales tas better Full Y r 2005 us. MI 1I I Yea 2006 vs. full Full Y r 2007 us. MI I vl Yea 2008 vs. full vl I Yea 2009 vs. full vl Yea 2010 vs. full ( --)Nei year 2004 3.2 ^/o yea 2005 5.0^ /o year2006 3.2 ^/o yea 200J 0.0^ /o yea 2008 - 13.4^/o yea 2009 Not GVailable nflaO TOV Fnance Total Annual (1 al Annual (aivary '06- Annual (anuary'07- Annual (aivary'08- Annual (aivary'09- Annual (aivary '10- Canstruction-Ta. Department us DeceAter'CS) Vot III 7ecember'06) -implemented DeceAter'07) Vot III 7ecember'08) $60,483 Jecember'09) 5713,582 7ecember'10) Not GVailable TOV Fnance Total property Annual (anuary'CS- Annual (aivary'06- Annual (1, 06 Annual (aivary'08- Annual (aivary'09- Annual (1- -MProperty Tax Department escolecd DeceAter'05) $2,46%6- Jecember'06) $2,751,06200 DeceAter'06) $2,630,331.00 Jecember'08) $4,092,167.00 Jecember'09) $4,317,417.00 Jecember'10) Not GVailable 1/I it' _r0II vauEmmomirmai�mro, 7nwr, rza�amuo I.g. 5 oft -trtodbl t /toROtt 3 -3 -7 Data pro di in tables was collecletl by theT— of Vail antl MTRiP in Jan. 2009 antl upd.. Dec. 2010f,.. --y of secontlary sources, which are thought to be accurate, but not ,d,p,,d,Mly —d- antl best — as a general overview as a resutl. Indiwtnr Source Description Report Dete('09- '05)Date('0+'05) 1 Report Dete('OS-V6)Dete('M -'06) Report Dete('06- '07)Dete('06'07) 1 Resort Detl('DJ- 'W)Dete('07 -'M) I Report- te('08' )Data I Report Dete.('— '10)Dete {'04'10) Totel Reel a te rov rnan« "I Real ATUal Oanuarv'as- Annual p�uarv'oe- Annual Oanuarv'm- Annual p­uarv'oa- Annual O�uarv'09 AnnualOa,aarvlo- TrensferTex Depa -- =Transfer Deczrtbu'QS) $6316A58.00 Jecember'06) $6239 J44.00 Decertber'OJ) $6536118.00 Jecember'08) $909191J.00 Jecember'09) $2,513,481.00 �ecem er 10 Not GVailable Ta wllec d I II Fnance General Fund As of Decerrber 3l, As. at Decerrber 3l, As of Dere -3l, As ut De..- As of Decerrber 3l, As of D... —, 3l, Town Reserves Depertrnent Y r£nd 2006 $136J3806.00 2006 $15,433,051.00 200] $19K34�1J.00 2008 230020736 2009 $231J341J.00 2010 Not GVailable Banc 1/18/2011 VallEmnomic[ntlirabrs, rbwn aevenue g eoi3 last —,fi.d t /1o/zo11 3 -3 -8 Data provided in tables was c011— by the Town Ot Vail antl MTRiP in Jan. 2009 antl updated Dec. 2010f,.. --y Ot secondary sources, which are thought to be accurate, but not ,d,pentlentIy —d- antl best usetl as a general overview as a resu0. VailEmnomi�Indicators: B—.—Growth (20042()10) Indicator Source Description Report Date ('04 -'05) Data ('04'05) Report Date ('05 -'06) Date ('M -06) 1 Report Dete ('06 -'0J) Date ('06 -'07) 1 Report Dete('OT W) Dete ('0J -'C@) Report Dete( W-'04) Date ( W-'09) Report Dete('03'10) Date ('04'10) Banking FDIC Tobl anaunt of Annual (]uly'04 -]une Annual (JUIy'OS -June Annual (JUIy'O6 -June Annual (JUIy'0] -June Annual (JUIy'OB -June Annual(JUIy'09 -June Deposi6 in banking d­— 05) $1,139,566,000 $1,3J3,139,000 $1,491,84J,000O $1A59,685,000O $1,449,899,000 C IO) 1,409A32,000 Eagle County (L5D) Same Store -P --I of 9l er �Ie (NOVenber'04- Not implemented Winter (NOVenber'QS- Vot implemented Win¢Y (Novenber'06- $9J,122,>ID1 WinGx (Novenber'9J- $9J,95J,83J Winter(Novenber'08- $J8,J 10, 13J NAnter (November '01 $J8,540,486 Sales reports (L5D) () April '06) Apnl 'OJ) Apnl '08) April '09) 1 '1Q) e(Ivb05- SLmmer(Ivby06- Sumrrzr (May OJ Sur ( 98 SL SLer(May10r'C() Not implemented October '06) Vot implemented Ocrober'07) $w,636,'5 October'08) $�A96,3]s Ocrober'09) $24A23,369 Ctrober'10) $26,8G3,CP9 Visitors Vail le—t, EsOmated Number Winter (NOVenber'04- 1192 Winter(Novenber'C(- 16118 WinGx (Noverrber'06- 1608200 WinGx (Novenber'0J- 1]!38 Winter(Novenber'08- 1622000 NAnter (November '09- 1399000 of -to" 'C() April '06) Apnl 'OJ) Apnl '08) April '09) Apnl '10) SLmmer (MSy'OS- SLmmer (MSy'06- Sumrrzr (May 'OJ- Sumner( May' 08 - SLmmer (MSy'09- Slmmer(May'10- Oember'as) 650,000(awl) Ocrober 06) 650A00 (es[) October'07) 650,000 (es[) october'o8) 650,000 (es[) October'o9) 650,000 (es[) Cttober'l0) 650,000 (es[) Unemploymen Depart nt Unenployrrz R frabor- inralArea rate In Eden Annual (]anuary'C(- Annual (]anuary'06- Annual (]atuary'OJ- Annual (]aivary'08- Annual (]anuary'09- Annual (]anuary'10- 6 " CounN Jeoenber'C() 3 ' lecenbe, 06) 3.4% Je— ber'07) 2 ' Jeoember'08) 3. lecenber'09) ].40^� Decenber'10) Not available Employment Department --ted number frabor -rural Area of people Inch) (]anuary'0' -ndal (]anuary'06- Annual (]aivary'OJ- Annual (]aivary'08- Annual (]anuary'09- Annual (]anuary'10- elinEa I 2],622 29,12] 30,300 30,4]] 2J,961 Not available nt e, 9e Jecenber'C() lecenbe, 06) Jecember'OJ) Je— ber'08) lecenber'09) Decenber'10 " tt16 County Population Ndmbe, of Annual (as of Idy'05) Anndd (asofIdly '06) Annual (as of]dly'07) Annual (Idne'OJ -IUly Annual (Idne'01 -Idy Annual (Idne'09 -Idly Estimates nested full -1 me q]89 4,812 4,871 '08) ._ '09) 5M7 '10) Not available nt ofcoc eslden in Vail Veil Economic Intlicators: Macroecvnomic(2f104 -2010) Indicator Source Descrption Report Date ('04-'05) Data ('04 -'OS) Report Date ('05-'06) Data ('05-'06) Report Date ('06 -'07) Data ('06 -'07) Report Date ('07'.) Data ('07-'.) Report Date ('W-'09) Data ('M -'09) Report Date ('W'10) Data ('04'10) Corrsumer .S Conference on"'er nter A C wi(Novenber'04 - Nnter(Novenber'((- wintx(Noveober'06 ntx - wi(N oveober'0J n - witer(Novenber'o8- NAnter(November'09- Contid— Eoard Conti den e Index April'(() 100.9 April '06) 164.6 Apnl 'OJ) 10]'8 Apnl 08) ]] April '09) 35.3 ' '10) 9 Index SL mmer(Ivby'05 SLmmer (Ivby'06- Sumrrzr (May 'OJ- Sumrrzr ( May' 08 - SLmmer (Ivby'09- SLmmer(May'10- October 'QS) 98.5 October'06) 104.7 October'oJ) 104.4 October'0.) 526 October'09J 51.2 C tober'10) 53.3 U Dollar vs. IFederal U Dollaros. Edro Winter(Novenber'04- $1.31 Winter(Novenber'QS- $1w WinGx (Novenber'06- $132 WinGx (Novenber'OJ- $1.50 Winter(Novenber'08- $1.31 VNnter (November'09- $1.41 Euro Rewsves April 'LLS) April '06) Apnl 'OJ) Apnl '08) April '09) Apnl '1Q) SLmmer (MSy'OS- SLmmer (MSy'06- Sumrrzr (May 'OJ- Sumrrzr ( May' 08 - SLmmer (IVloy'09- SLmmer(May'10- Ocrober'C() $1.22 October'06) $1.27 October'0J) $1.37 October'08) $1.49 Ocrober'09) $1.42 Cttober'10) $1.D E e 1/18/2011 -I —no— Ind s -ms. us�nase nrewa,_rnaUe mn 9 7 et Ian lodwe d 1 /tnnnt t 3 -3 -9 Ever V a i l he r;canoinics of Land Use Fiscal Impact Analysis ( Prepared for: Town of Vail Prepared by: Economic & Planning Systems, Inc. January 13, 2011 Economic & Planning Systems, Inc. 730 17th Street Suite 630 Denver, CO 80202 -3511 303 523 3557 tel 3013 523 9049 fax EPS #20812 Berkeley Sacramento Denver 1/18/2011 www.epsys.com 3 - 4 - l Table of Contents 1. INTRODUCTION ..................................................................... ............................... 1 Purpose.................................................................................... ............................... 1 ReportOrganization ................................................................... ............................... 1 Methodology.............................................................................. ..............................3 Fiscal Model Organization ............................................................. ..............................6 2. PROJECT OVERVIEW AND KEY ASSUMPTIONS ................................... ............................... 8 Development Program ................................................................ ............................... 8 KeyAssumptions ..................................................................... ............................... 12 3. FISCAL IMPACTS ................................................................. ............................... 14 Summary of Fiscal Impacts ....................................................... ............................... 14 Existing Site Fiscal Conditions .................................................... ............................... 18 General Fund Impacts .............................................................. ............................... 19 OtherFund Impacts ................................................................. ............................... 25 4. ECONOMIC IMPACTS ............................................................. ............................... 29 Summary of Retail Impacts ....................................................... ............................... 29 Ever Vail Spending Flows .......................................................... ............................... 34 Retail Sales in Ever Vail Businesses ............................................ ............................... 38 5. KEY FINDINGS AND RECOMMENDATIONS ...................................... ............................... 42 1/18/2011 3 -4 -2 List of Tables Table 1 Ever Vail Proposed Development Program ............................ ............................... 8 Table 2 Ever Vail Estimated Market Values ........................................ ..............................9 Table 3 Ever Vail Retail and Commercial Development Program ....... ............................... 10 Table 4 Comparison of Ever Vail Retail Programs ............................ ............................... 11 Table 5 Occupancy Assumptions ................................................... ............................... 12 Table 6 High Scenario Fiscal Impacts ............................................ ............................... 15 Table 7 Low Scenario Fiscal Impacts ............................................. ............................... 16 Table 8 Current General Revenues from Ever Vail Site .................... ............................... 18 Table 9 High Scenario - General Fund Revenues and Expenses ......... ............................... 20 Table 10 Low Scenario - General Fund Revenues and Expenses ......... ............................... 21 Table 11 Summary of Ever Vail Sales Tax ........................................ ............................... 23 Table 12 General Fund One -Time Revenues and Expenses ................ ............................... 24 Table 13 Capital Fund Impacts - High Scenario ................................ ............................... 26 Table 14 Capital Fund Impacts - Low Scenario ................................ ............................... 27 Table 15 RETT, Vail Marketing District, and URA Revenues ................ ............................... 28 Table 16 Summary of Town Retail Sales Flows with Ever Vail ............. ............................... 31 Table 17 Vail Retail Inventory .......................................................... .............................33 Table 18 Total Ever Vail Guest Spending Regardless of Location ......... ............................... 35 Table 19 Ever Vail Guest Spending Capture Rates ............................ ............................... 36 Table 20 Ever Vail Guest Spending by Location ................................ ............................... 37 Table 21 Potential Erosion from Existing Business Districts ................ ............................... 39 Table 22 Projected Sources of Sales in Ever Vail Retail ...................... ............................... 40 Table 23 Projected Net Dollar Flows by Business District ................... ............................... 41 1/18/2011 3 -4 -3 List of Figures Figure 1 Ever Vail Guest Spending Patterns .................................... ............................... 30 Figure 2 Net Dollar Flows vs. Existing Retail Sales ........................... ............................... 32 1/18/2011 3 -4 -4 1. INTRODUCTION Purpose Economic & Planning Systems (EPS) was hired by the Town of Vail to conduct a fiscal and economic impact analysis of the proposed Ever Vail development. EPS' scope of work included two major tasks: Fiscal Impact Analysis - The fiscal impact analysis addresses the costs of providing Town services to the project compared to the revenues generated by the project. The fiscal analysis accounts for a range of funds including the General Fund, the Capital Fund, the RETT Fund, the Marketing Fund, and the URA Fund. Economic Impact Analysis - The economic impact analysis addresses the ways in which the project is expected to impact other sectors of the Vail economy and how these impacts can be mitigated. One of the key issues has been cannibalization (sales erosion). To address this issue, the Economic Impact Analysis quantifies retail sales flows by base area, Vail Village, Lionshead, and West Vail. The Economic Impact analysis also addresses other economic and policy issues (more qualitatively) such as the provision and filling of "hot beds," the capability to attract group sales, the ability of the project to fill shoulder seasons, and the economic goal of attracting and retaining jobs in more diverse economic sectors. Report Organization This report provides a comprehensive analysis of the Ever Vail projected impacts. It includes the following chapters: 1. Introduction - Identifies the purpose for the analysis and lists key issues to be evaluated. 2. Project Overview and Key Assumptions - Provides a summary of the project, a summary of how the program has changed, and lists the key assumptions used to determine the fiscal and economic impacts. 3. Fiscal Impacts - Identifies the full range of fiscal revenues and expenditure for five different Town funds. 4. Economic Impacts - Provides a basis for understanding sales flows into and within the Town of Vail. Estimates future sales flows and quantifies cannibalization impacts to existing retail nodes. 5. Recommendations - Lists key findings from this study and isolates key issues that warrant follow up based on this analysis. Economic & Planning Systems, Inc. 1/18 /2011 1 3 -4 -5 Ever Vail Fiscal Impact Analysis January 13, 2011 Summary of Previous Material On December 7, 2010, Economic & Planning Systems presented its analysis to the Vail Town Council regarding the fiscal and economic impacts of the proposed Ever Vail development. (Material used in the presentation was dated November 11, 2010.) During the presentation, Council members asked a series of questions. In response, EPS has provided this expanded report to address: • Follow Up Questions - This report provides a more detailed explanation of the methods and assumptions used in the analysis. The report describes the projections for each fund and links the narrative to detailed tables to provide a more incremental approach and an increase in the level of understanding of the models used in the analysis. It also addresses specific issues such as the Lionshead retail sales levels, lift ticket revenue projections, and revenue streams generated by the current improvements. • Revisions - A number of small revisions have been made to address comments and to correct minor errors. The changes show that the project will have a slightly better fiscal and economic impact on the Town than originally projected. None of the changes affect the overall conclusions. These revisions are summarized below. 1. Fiscal Impact Model Overview. The methodology section was revised and expanded to describe the organization of the Fiscal Impact Model and the functions of the various tables. 2. Lionshead food and beverage sales. Lionshead food and beverage sales are approximately $22.2 million, compared to the incorrect figure of $2.9 million shown previously. EPS overlooked a category of sales in the previous version and the model has been corrected. A small change to the erosion and sales flows estimates was required after this change, resulting in a minor difference in the sales flow figures (1.0 percent positive net sales flow versus 0.9 percent in this version). 3. RETT Fund. The figure reported in Tables 6 and 7 of the previous memo reflected the total for RETT from initial developer sales and the recreation impact fee. These two figures are now reported separately to clarify the individual revenue sources to the RETT fund. The ongoing revenues stated previously have not changed. 4. General Fund Expenses. The General Fund expenses under the cumulative scenario declined by $149,000. EPS mistakenly included the right -of -way maintenance cost twice in the cumulative impact. Because costs are now lower, the fiscal benefit is higher. 5. General Fund Revenues. Revenues declined by $44,000 in Phase I and $18,000 in Phase II due to the elimination of the Road and Bridge Property Tax. Since the project is largely within the Lionshead URA, this revenue stream would be part of the increment captured by the URA. 6. A typographical error in Figure 1 (the dollar bill image) was corrected. Economic & Planning Systems, Inc. 1/18 /2011 2 3 -4 -6 Ever Vail Fiscal Impact Analysis January 13, 2011 Methodology This section provides an overview of the methodology used to perform the detailed calculations in the Fiscal Impact Model. Fiscal impact analysis (FIA) is a municipal financial planning and community development tool used to evaluate the impacts of land use decisions. It provides order -of- magnitude estimates of the impacts to a Town's ongoing revenues, operations and maintenance costs, and capital expenditures. The FIA can, however, identify specific project impacts to be addressed and mitigated such as extraordinary O &M costs or one -time capital costs triggered by the project. The analysis focuses on the Town's General Fund revenues and expenditures to estimate the net fiscal impact of the project. The General Fund is the major operating fund for the Town. The analysis also estimates the building and construction related revenues, the Real Estate Transfer Tax (RETT), construction use tax, lodging tax, the recreation impact fee, and property tax increment to the URA. The Town has many other smaller revenue sources. Most of these were not analyzed because they do not have a strong nexus to growth and development. In other words, they are determined by contractual agreements or formulas that are not directly linked to new growth and development. Expenditures are not estimated for the RETT, Vail Marketing District, or URA funds because expenditures from these funds are made on a discretionary basis as funds are available, and these expenditures may not be directly related to impacts generated by Ever Vail. Cost and Revenue Methodology The fiscal impact model uses the Town of Vail Budgets and Comprehensive Annual Financial Reports (CAFR) from 2006 -2009 as the basis for estimating revenue and cost factors which are applied to estimate project specific impacts. The analysis compares annual ongoing revenues to ongoing annual expenditures (O &M). One -time capital costs are addressed separately. Two methods are used to estimate costs and revenues: case studies and average cost or revenue multipliers, as described below. Case Studies This refers to a specific calculation of the marginal costs or revenues derived from the Project based on available data. Case studies were developed for revenue sources when refined calculation methods were available. For example, property taxes are calculated from expected market values multiplied by the assessment ratio and then multiplied by the applicable mill rates. Sales tax revenues are calculated from estimated visitor expenditures. Police and fire impacts (calls for service) were estimated by constructing a per -unit comparison of call volume in Lionshead Village. Average Cost or Revenue Multipliers These are cost or revenue measures that are ratios of budget line items to known quantities such as population, housing units, or peak persons served. The variable "peak persons served" is defined as population plus visitors plus one -half of non - resident employees. Half of non - resident employees reflect the impacts of employees who are only present for a portion of a day. This estimating technique is used when more detailed data is not available. Revenues or Economic & Planning Systems, Inc. 1/18 /2011 3 3 -4 -7 Ever Vail Fiscal Impact Analysis January 13, 2011 expenditures can be expressed in terms of a cost or revenue per capita, per housing unit, or per peak person served, etc. Some costs and revenues do not increase at the same rate as the Town's growth. For example, general Town administration and government is a relatively fixed cost that does not increase by a one -to -one ratio with new development. The costs to provide other services such as police and fire are more directly tied to the increase in population and persons served generated by new development. To account for cost variability, a percentage adjustment is applied to gross average cost multipliers to reduce them to a net multiplier. One -Time vs, Ongoing Revenues New development generates two types of revenue to the General Fund: annual revenue and one- time revenue. Annual revenue includes property tax, sales tax, and lodging sales tax. One -time revenue includes building permit and plan review fees. Note that other Town Funds, such as Capital, RETT, Marketing, etc., are addressed following the General Fund discussion. Tax Revenues The tax revenues described below are ongoing annual revenues that will occur after the project is constructed and occupied, and will continue for the life of the project. The major ongoing tax revenues analyzed are described below: • Sales and Lodging Tax — The Town allocates about 60 percent of sales tax to the General Fund and 40 percent to the Capital Fund. Within the General Fund, sales tax accounts for 37 percent of all General Fund revenues. Sales tax includes the 4.0 percent general sales tax and the 1.4 percent lodging tax. The 4.0 sales tax applies to both retail sales and overnight lodging sales. The 1.4 percent lodging tax is dedicated to the Vail Marketing District and is not used to fund Town operations. • Property Tax — Property tax is normally a General Fund revenue. However, the Ever Vail project lies within the Lionshead Urban Renewal Area (URA). The URA collects property tax increment revenues in this area for 25 years after the date that the tax base for the URA was established. The tax base for tax increment revenues was established on December 31, 2004. Any new property tax revenue in the URA, including revenues generated by the Ever Vail project, flows to the URA rather than the General Fund until 2030 (December 31, 2029). The URA can use these revenues to fund a variety of functions or capital projects within the U RA. • Ski Lift Tax — This is a 4.0 percent sales tax on lift ticket sales. Lift tax revenue contributes to operating the Town's free bus service. Lift tax is calculated from net new skier visits, rather than the total number of skiers originating in the Ever Vail mountain portal. • Real Estate Transfer Tax (RETT) — This is a 1.0 percent transaction tax on the sale of real property in the Town of Vail. RETT revenues are restricted to the RETT Fund, which is used for parks, recreation, open space, and environmental sustainability. Economic & Planning Systems, Inc. 1/18 /2011 4 3 -4 -8 Ever Vail Fiscal Impact Analysis January 13, 2011 Construction Related Revenues Ever Vail will generate several revenue streams during the course of project construction. These are "one- time" revenues in that they will end when the project is built out. The primary concern in the FIA is to ensure that the ongoing revenues will cover the costs of services, as construction - related revenues cannot be relied on if construction stops. However, construction fees and permits are roughly 15 percent of General Fund revenues, and are an important operating revenue source from year -to -year and should be accounted for in the analysis. • Construction Use Tax — The Town's 4.0 percent construction use tax is applied to the cost of materials. The construction use tax is dedicated to the Capital Fund. • Building Permit and Plan Review Fees — The Town charges a building permit fee based on the construction valuation and a plan review fee that is 65 percent of the building permit fee. Permit fees go to the General Fund. • Recreation Impact Fee — The Town charges a $1.00 per square foot recreation impact fee which is allocated to the RETT fund for parks, recreation, open space, and environmental sustainability. • Traffic Impact Fee — The Town has traditionally collected a traffic impact fee that is $6,500 per peak hour trip. It has been included in the analysis, recognizing that in previous project approvals, the Town has accepted public road improvements as a credit against the impact fee. Economic & Planning Systems, Inc. 1/18 /2011 5 3 -4 -9 Ever Vail Fiscal Impact Analysis January 13, 2011 Fiscal Model Organization EPS has provided Town staff with a detailed Fiscal Impact Model (a spreadsheet model) that contains all of the calculations and assumptions used in this analysis. Earlier drafts of the Model were also provided to Town Council. This section of the report provides an overview of the Model's organization for reference. The Table of Contents in the Fiscal Model (separate from this report) shows the general organization of the model, with table numbers and descriptions divided into major topic areas described below. The tables referenced in this section refer to the Fiscal Impact Model, not this report. Project Assumptions The development program and basic market assumptions are identified in this section of the Fiscal Model in Tables 1 through 8. Many costs and revenues are based on visitor days generated by the project. The calculation of net new visitor days is shown in Table 5. The project's peak population and visitors are also calculated in Table 6. The monthly occupancies used for calculating skier visits are shown in Table 8. Town Demographics and Budget Analysis This section of the model calculates the cost and revenue multiplier factors used for costs and revenues estimated with the average cost method. Table 9 estimates the total Town peak population. Table 10 is an estimate of second homes (not in the rental pool) used in Table 9. Tables 11 through 14 identify the various cost and revenues in the general fund, the methods used to estimate them (case studies or average cost method), and the resulting average cost and revenue multipliers. Table 15 describes the current sales tax structure in the Town. Revenue Analysis Tables 16 through 22 provide detailed case study estimates of the property tax, lodging tax, RETT, and lift tax revenues. Table 22 estimates the lift tax from only net new skier visits calculated from net new visitor days. Table 22a provides a total estimate of skiers that would originate in the Ever Vail portal, not including day skiers from parking. Cost Analysis Case studies for the major project costs are shown in Tables 23 through 28. These were developed with Town department heads and key staff. The transit impacts identified in Table 28 come from LSC Transportation Consultants. One -Time Fees and Revenues Tables 29 through 32 calculate one -time building and development fees from the development program. Actual fees will vary as more specific construction information becomes available. These revenues occur "one time" in that they only occur during construction. Economic & Planning Systems, Inc. 1/18 /2011 6 3 -4- 10 Ever Vail Fiscal Impact Analysis January 13, 2011 Results Tables Tables 33 through 38 combine the case study estimates and average cost /revenue estimates to calculate the annual net fiscal impact to the General Fund, shown in detail in Table 35. Table 36 shows one -time General Fund revenues. Table 37 shows the impact to the Capital Fund. Table 38 shows the impacts to the RETT, Vail Marketing District, and URA funds. Expenditures are not estimated for the RETT, Vail Marketing District, or URA funds because expenditures from these funds are made on a discretionary basis, as funds are available, and these expenditures may not be related to impacts generated by Ever Vail. Economic & Planning Systems, Inc. 1 /18 /2011 3 -4- 11 2. PROJECT OVERVIEW AND KEY ASSUMPTIONS The purpose of this chapter is to summarize the proposed development program, isolate various elements within the program by use to evaluate fiscal impact, and provide assumptions about the functioning of the development that serve as the basis for the modeling. Development Program Residential The development program as proposed is summarized in Table 1. It includes a total of 530 residential units and hotel rooms. The hotel is currently proposed to be 102 rooms. A 76 -unit "branded residence" condominium component would be associated with the hotel brand, management, and guest services. An additional 307 market rate condominiums are proposed, plus 26 deed restricted rental units and 19 deed restricted for -sale condominiums. The for -sale units would be deed restricted to Eagle County residents and full -time local employees. Compared to the earlier submittal, the residential program is largely the same; the major difference is that the hotel has been reduced to 102 rooms from 120 rooms. The retail program has also been scaled back significantly, as will be discussed below. The project was analyzed as a two phase project. The fiscal impact of each phase was modeled as if it were a single standalone project; the fiscal impacts of Phase I and Phase II are reported separately. The cumulative impact of full buildout of both phases was also analyzed. EPS has modeled the east phase as Phase I. Phase I includes the hotel and retail /commercial space. Phase II, the western phase, is almost entirely residential. Table 1 Ever Vail Proposed Development Program Ever Vail Fiscal Impact Analysis Description Phase I Phase II Total East West Development Program Hotel 102 0 102 Branded Residences 76 0 76 Condominiums 158 149 307 Deed Restricted Rental 8 18 26 Deed Restricted For -Sale 12 7 19 Total Units 356 174 530 GRFA 468,067 315,273 783,340 Source: Vail Resorts Development Company, Economic & Planning Systems H'. \20312 Ev, Val 5­1 Mai. J 7812 -f—d ,Ne11 2- 29 20 1 0,1s�1 -R.v Fl qz Economic & Planning Systems, Inc. 1/18 /2011 8 3 -4- 12 Ever Vail Fiscal Impact Analysis January 13, 2011 Market values for the fiscal impact analysis were determined by EPS from research on several recently built and currently for -sale base area projects located throughout the Intermountain West. The market rate components are modeled at an average of $1,200 per square foot, or $1.8 million per unit, as shown in Table 2. The hotel market value is estimated to be $426,000 per room, based on 60 percent occupancy, a $350 per night average daily rate, 50 percent operating expenses, and a 9.0 percent capitalization rate. Vail Resorts Development Company (VRDC) staff has indicated that the deed - restricted for -sale units would be priced at approximately $400,000 per unit. Table 2 Ever Vail Estimated Market Values Ever Vail Fiscal Impact Analysis Description Phase I Phase II Avg. Sq. Ft. Hotel - -- - -- Branded Residences 1,500 1,500 Condominiums 1,500 1,500 Deed Restricted Rental 1,200 1,200 Deed Restricted For -Sale 1,250 1,250 Market Value /Sq. Ft. Hotel - -- - -- Branded Residences $1,200 $1,200 Condominiums $1,200 $1,200 Deed Restricted Rental - -- - -- Deed Restricted For -Sale $325 $325 Market Value /Unit Hotel $426,000 $426,000 Branded Residences $1,800,000 $1,800,000 Condominiums $1,800,000 $1,800,000 Deed Restricted Rental $102,000 $102,000 Deed Restricted For -Sale $406,250 $406,250 Source: Vail Resorts Development Company, Economic & Planning Systems H: \2(E12 EV Vad WW2- 29- X10.1,P[AtA ianpt.,s Economic & Planning Systems, Inc. 1/18/2011 9 3 -4 -13 Ever Vail Fiscal Impact Analysis January 13, 2011 Retail and Commercial The project is also proposed to contain approximately 123,000 square feet of mixed use retail and commercial space. However, less than half of the space or approximately 53,000 square feet is programmed as retail and food and beverage space. There is an additional 69,500 square feet of conference, meeting, skier services, spa, and office space, as shown in Table 3. The program also proposes additional parking. A total of 1,464 parking spaces will be constructed, 1,025 in Phase I and 439 in Phase II. Approximately 400 of the total count will be public spaces and are anticipated to be used by day skiers during the ski season. The balance fulfills requirements related to retail and residential uses. Table 3 Ever Vail Retail and Commercial Development Program Ever Vail Fiscal Impact Analysis Description Phase I Phase II Total East West Retail and F &B Restaurant 16,090 0 16,090 Nightclub 6,013 0 6,013 Sporting /Apparel 11,118 0 11,118 Spa and Other Leaseable Retail 5,881 0 5,881 Grocer 14,156 0 14,156 Subtotal 53,258 0 53,258 Other Commercial Space Skier Services - Ticketing 2,489 0 2,489 Children's Skier Services 0 12,114 12,114 Spa 9,870 0 9,870 Office 35,395 0 35,395 Meeting Spaces (incl. hotel) 9,663 0 9,663 Subtotal 57,417 12,114 69,531 Totals 110, 6 75 12,114 122,789 Parking Public Spaces 200 200 400 General 825 239 1,064 Total Analyzed 1,025 439 1,464 Source: Vail Resorts & BBC Research, Economic & Planning Systems H: \2B12 E-Va Racal And ps Maleh\ 21812 -fiscd rnwe412- 29 2/10x1s]^ C­,­ a Da Prag Economic & Planning Systems, Inc. 1/18/2011 10 3 -4 -14 Ever Vail Fiscal Impact Analysis January 13, 2011 The applicant has reduced by approximately half the amount of retail proposed in this submittal. The applicant is currently proposing 53,000 square feet of restaurant, spa, and leasable retail space. Earlier versions of the development program contained approximately 100,000 square feet of retail and restaurant space. The current proposal has been downsized, as shown in Table 4. Previously, EPS expressed concerns that the earlier proposal had too much retail space for the location and the size of the bed base proposed. A number of potential impacts to the Town were identified such as vacant retail space and a lack of vitality and potential impacts to the existing retail areas of the Town. The reduction in retail space was an outcome of several discussions and working meetings between Vail Resorts Development Company (VRDC), EPS, BBC Research working as VRDC's consultant, and Town of Vail Staff. A key factor used in these discussions was the amount of retail floor area that could be supported by reasonable assumptions about the expenditure potential from Ever Vail guests and residents. (Based on the immediate adjacency, the "right sizing" also accounted for future expenditure from Ritz Carlton guests.) There is now general agreement that the retail is appropriately sized, the supply reflects appropriate assumptions about demand, and that the resulting area has sufficient ballast to provide a high quality guest experience expected by visitors at a ski area base portal. Table 4 Comparison of Ever Vail Retail Programs Ever Vail Fiscal Impact Analysis Retail Development Current Proposal Previous Proposal Restaurant 16,090 24,000 Nightclub 6,013 6,000 Sporting /Apparel 11,118 36,000 Spa and Other Leaseable Retail 5,881 21,000 Grocer 14,156 13,000 Total 53,258 100,000 Source: Vail Resorts, Economic & Planning Systems H: \20 8112 Eve' Vail Msc21 Analyss \Models\ 20812 - fiscal moc�1 -11 -0 5- 2010.,ds]S heed Economic & Planning Systems, Inc. 1/18 /2011 11 3 -4- 15 Ever Vail Fiscal Impact Analysis January 13, 2011 Key Assumptions EPS analyzed the project under "High" and "Low" scenarios to evaluate the project under different performance measures. The High Scenario reflects what EPS believes to be reasonable estimates of performance for a well located high quality base portal development with direct lift access. It was not designed to be an "optimistic" or "aggressive" scenario. It does, however, assume that VRDC will actively market the project, pursue off - season business (group business, meetings, conferences, etc.) to fill hotel rooms and rental condominiums, and motivate owners to participate in a rental program. The "Low" scenario was designed to reflect "average" or "business -as- usual" performance for Vail properties. Occupancy is a key economic and fiscal driver; the occupancy assumptions are shown below in Table 5. In the High Scenario, the hotel is assumed to operate at 60 percent annual occupancy and 50 percent annual occupancy in the Low Scenario. Condominiums are modeled at 40 percent annual occupancy in the High Scenario and at 30 percent in the Low Scenario. Table 5 Occupancy Assumptions Ever Vail Fiscal Impact Analysis Description "High" Scenario "Low" Scenario % In Rental Pool Hotel 100% 100% Branded Residences 75% 65% Condominiums (Free Market) 50% 35% Deed Restricted Rental 0% 0% Deed Restricted For -Sale 0% 0% Annual Occupancy Hotel 60% 50% Branded Residences 45% 40% Condominiums in Rental Pool 40% 30% Second Home Condominiums 20% 20% % of Guests Net New Hotel 70% 60% Branded Residences 70% 60% Condominiums in Rental Pool 50% 40% Second Homes 100% 100% Source: Vail Resorts, Economic & Planning Systems H: \263'12 Eva Vai Fiscal And ysls\MweOg23812 -fiscI male F12- 2 9 2016, I s7She 11 Economic & Planning Systems, Inc. 1/18 /2011 12 3 -4- 16 Ever Vail Fiscal Impact Analysis January 13, 2011 The percent of guests that are "net new" to Vail is also estimated. The hotel is assumed to draw 60 to 70 percent net new guests, based on interviews with hospitality consultants and hotel managers. Net new guests are lower for the condominiums, estimated at 40 to 50 percent. All second homeowners are assumed to be new; however, second homes have a fraction of the economic impact of hotel rooms and therefore do not have a large effect in the fiscal impact model. Another key assumption is that costs related to infrastructure internal to the project will be borne by Vail Resorts, not the Town of Vail. It is anticipated that Vail Resorts and the Town will establish a Title 32 Metropolitan District (metro district) for this purpose. At the time of service plan approval, it is recommended that a segregated revenue stream be established to cover operations and maintenance costs (as distinct from debt service for capital improvements) and that it be sized to ensure a level of service commensurate with Town of Vail standards. Finally, it is important to note that the fees included in the model are the best approximation available at this time. Actual fees and requirements applied at time of project approval or at time of building permit may differ, based on a modified development program and /or modified Town standards. Economic & Planning Systems, Inc. 1/18 /2011 13 3 -4- 17 3. FISCAL IMPACTS Summary of Fiscal Impacts The following is a summary of the key costs and revenues generated by the project, and the impacts by fund. Detailed results and supporting calculations can be viewed in the Fiscal Model that has been provided to Town Staff. A description of the methodology used and an overview of the Fiscal Model is also provided at the end of this memorandum. 1. At full buildout, the Ever Vail project is estimated to generate a positive fiscal impact to the Town. After accounting for high and low occupancy assumptions, the fiscal impact to the General Fund is estimated at $472,000 to $796,000 annually at full project buildout and stabilization. The higher range of estimated fiscal impacts reflects what EPS believes are reasonable assumptions for the performance of a high quality well performing base area resort project with direct lift access. It also presumes that VRDC will actively market the project to fill hotel beds, attract groups during the off - season, and encourage owners to participate in a rental program. The lower fiscal impact estimate represents more "average" performance for Vail properties, with no special marketing or management strategies designed to maximize "hot beds." The project's actual performance will likely lie somewhere between the low and high estimates. The results of the fiscal impact analysis are summarized in Tables 6 and 7 for the High and Low Scenarios, respectively. 2. The fiscal impacts of both phases of the project are positive. Phase I (east) generates a larger benefit to the Town than Phase II (west) due to higher guest expenditure levels generated by the 102 hotel rooms, 76 branded residences, and 158 condominium units. The hotel is a key economic driver estimated to generate about 25 percent of the visitors and spending from the project under the High Scenario. The branded residences are modeled as performing similarly to the hotel and account for approximately 17 percent of total visitors and expenditures. As noted previously, Phase II does not include hotel rooms or branded residences. Retail sales and sales tax are derived from visitor spending, and Phase I generates more spending that Phase II. The annual net fiscal impact to the General Fund of Phase I by itself is estimated at $300,400 to $518,700. Phase II by itself has a fiscal impact of $100,100 to $205,200 per year. Economic & Planning Systems, Inc. 1/18/2011 14 3 -4 -18 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 6 High Scenario Fiscal Impacts Ever Vail Fiscal Impact Analysis By Phase - Standalone Cumulative Impact by Phase Fund Phase I Phase II Phase I Phases I & II General Fund Revenues $971,500 $412,100 $971,500 $1,383,500 Expenses [1] -$452,800 -$206,900 -$452,800 -$587,85 Net Fiscal Impact $518,700 $205,200 $518,700 $795,650 Capital Fund One -Time Use Tax $9,291,760 $5,103,520 $9,291,760 $14,395,280 Annual Sales Tax $599,800 $258,464 $599,800 $858,232 RETT Fund One -Time Developer Sales $4,261,000 $2,710,000 $4,261,000 $6,971,000 Recreation Impact Fee $ 468.067 $315.273 $468.067 $783.340 Total One -Time Revenue $4,729,067 $3,025,273 $4,729,067 $7,754,340 Annual Resales $192,000 $122,000 $192,000 $314,000 Vail Marketing District 1.4% Lodging Tax (Annual) $366,000 $168,000 $366,000 $534,000 Urban Renewal Authority General Fund Property Tax to URA [2] $258,000 $104,000 $258,000 $362,000 Other Taxing Entities Tax Increment $2,280,000 $919,000 $2,280,000 $3 0 Total Property Tax Increment $2,538,000 $1,023,000 $2,538,000 $3,561,000 [1] Expenses by phase do not add to the cumulative impacts of the entire project. Police is not estimated to need additional staff to serve individual phase< but would need an estimated 1 officer to serve the project if both phases are built. Fire is estimated to need an additional staff person to serve Phase I which will also cover Phase 11. [2] The project is Ia gelywithin the Uonshead URA. This revenue reverts to General Fund after URA expires in 2030. Source: Economic& Planning Systems H: \28812 Ever Vail Fl gal Matysls\M Itl \[ 20812 -fiscalm el- 12-29- 2010 -]ESA Economic & Planning Systems, Inc. 1/18 /2011 15 3 -4- 19 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 7 Low Scenario Fiscal Impacts Ever Vail Fiscal Impact Analysis By Phase - Standalone Cumulative Impact by Phase Fund Phase I Phase II Phase I Phases I & II General Fund Revenues $736,000 $298,100 $736,000 $1,034,000 Expenses [1] - $435,600 - $198,000 - $435,600 - $561,750 Net Fiscal Impact $300,400 $100,100 $300,400 $472,250 Capital Fund One -Time Use Tax $9,157,200 $5,103,520 $9,157,200 $14,260,720 Annual Sales Tax $457,096 $188,264 $457,096 $645,344 RETT Fund One -Time Developer Sales $4,261,000 $2,710,000 $4,261,000 $6,971,000 Recreation Impact Fee $468,067 $315.273 $468,067 $783.340 Total One -Time Revenue $4,729,067 $3,025,273 $4,729,067 $7,754,340 Annual Resales $192,000 $122.000 $192,000 $314,000 Vail Marketing District 1.4% Lodging Tax (Annual) $294,000 $126,000 $294,000 $420,000 Urban Renewal Authority General Fund Property Tax to URA [2] $248,000 $104,000 $248,000 $352,000 Other Taxing Entities Tax Increment $2,193,000 $919,000 $2,193,000 $3,112,000 Total Property Tax Increment $2,441,000 $1,023,000 $2,441,000 $3,464,000 [11 Expenses by phase do not add to the cumulative impacts of the entire project. Police is not estimated to need additional staff to serve individual phases, but would need an estimated 1 officer to serve the project if both phases are built. Fire is estimated to need an additional staff person to serve Phase I, which will also cover Phase II. [2] The project is largely within the Lionshead URA. This revenue reverts to General Fund after URA expires in 2030. Source: Economic & Planning Systems H'. \2M12E —V.1 H..1Andyda \More1s \12- 29 {a, \[M812ti.d mWW2 -29 -2910 I— x9]ES -1 Economic & Planning Systems, Inc. 1/18/2011 16 3 -4 -20 Ever Vail Fiscal Impact Analysis January 13, 2011 3. Ever Vail is estimated to require additional staff for Police and Fire under the High and Low Scenarios. Police and Fire service demands were estimated by a comparative analysis of call volumes in Lionshead Village completed by EPS and Town staff. At full buildout of both phases, Police is forecasted to need one additional patrol officer at an annual cost of $77,150 plus a one -time training cost of $65,000. By themselves, neither phase triggers the need for an additional police officer. Cumulatively, however, demand for services will require a new position. Based on the forecasted call volume, the Fire Department will need an additional staff person to serve Phase I at an annual cost of $76,600 plus a one -time training and equipment cost of $7,800. 4. The largest impacts on Town services are to the Town's transit system. LSC Transportation Consultants completed a study of the impacts of Ever Vail on the Town's transit system. LSC estimated the need for three new buses at a cost of $600,000 each. The annual operations cost is estimated at $111,300. EPS has allocated the impacts to Phase I, as it generates the most visitor activity. 5. The project is largely within the Lionshead URA. Therefore, the majority of the property tax generated by the project will flow to the URA rather than the General Fund until 2030. At full buildout, the General Fund portion of the property tax increment generated by the project is approximately $360,000 per year. After the URA expires on December 31, 2029, this revenue will revert back to the General Fund, increasing the net fiscal impact by the same amount. The total property tax increment at buildout is approximately $3.5 million per year, based on the structure of the URA which redirects non -Town revenue streams to the URA. These funds can be used by the URA to fund eligible projects. 6. The Ever Vail development will generate substantial one -time revenues from construction use tax and permit fees. The construction use tax from Phase I is estimated at $9.3 million over the course of its construction, contributing to the Town's Capital Fund. The construction of Phase II would produce approximately $5.1 million in use tax. The total impact to the Real Estate Transfer Tax (RETT) fund for Phase I is $4.7 million, including $4.3 million in RETT from initial developer sales and $468,000 from the Recreation Impact Fee. Phase II would generate $2.7 million in RETT from initial sales and approximately $315,000 from the impact fee for a total of $3.0 million. The RETT fund is used for park, open space, and sustainability projects. Permit and plan check fees are estimated at $3.1 million for Phase I and $1.7 million for Phase II. Permit and plan check fees are one -time revenues that contribute to the cost of development revue. Since they are one -time revenues during construction, they are not counted in the annual fiscal impact to the General Fund which reflects the project at buildout and stabilization. Economic & Planning Systems, Inc. 1/18 /2011 17 3 -4 -21 Ever Vail Fiscal Impact Analysis January 13, 2011 Existing Site Fiscal Conditions How much revenue does the site generate currently? The Ever Vail site has a variety of existing uses and structures on it, including the 20,000 square foot Vail Professional building (largely office), the 11,000 square foot Cascade Crossing retail building, a former gas station, the 11,000 square foot Glen Lyon Office Building, and the Vail Resorts Maintenance Yards. The major existing revenues from the site are $61,900 including $21,540 in retail sales tax to the General Fund, $14,360 in sales tax to the Capital Fund, and $26,000 in property tax. Table 8 Current General Revenues from Ever Vail Site Ever Vail Fiscal Impact Analysis Revenue Existing 4.0% Retail Sales Tax — General Fund $21,540 4.0% Lodging Tax $0 Sales Tax — Capital Fund $14,360 Property Tax - General Fund (4.69 mills) $26,000 Total $61,900 Source: Town of Vail Finance Department: Economic & Planning Systems H 120812 EV Vail Ms. l Analysis\ Males 12781241 d We 112- 29-Z)10.1S]ES -2 B4AI Economic & Planning Systems, Inc. 1/18 /2011 18 3 -4 -22 Ever Vail Fiscal Impact Analysis January 13, 2011 General Fund Impacts What are the major revenue sources that will impact the General Fund? What are the significant expenditures that will occur? Ongoing Revenues The largest sources of ongoing General Fund revenues are the 4.0 percent retail sales tax and the 4.0 percent lodging sales tax. The retail sales tax is generated through net new lodging visitor expenditures in Vail retail and food and beverage establishments. The 4.0 percent lodging sales tax is generated through the sale of net new room nights (and is distinct from the 1.4 percent lodging tax dedicated to marketing). Under both scenarios, lodging sales tax is the largest source of revenue from the project and is estimated to be $915,000 per year for the high scenario after buildout of Phase I and Phase II, as shown in Table 9. For the low scenario, this figure is estimated to be $719,000 as shown in Table 10. The cumulative retail sales tax from buildout of both Phases ranges from $250,000 to $372,000. Note that the general fund would not receive any property tax until 2030 (when the URA will sunset) because the project is largely within the Lionshead Urban Renewal Area, which collects the tax increment from new development, as will be discussed below. It should be noted that the revenue from lift tax is modest, at $47,000 annually in the High Scenario. Lift tax revenue shown is calculated from the estimated new skiers (and net new revenue) generated by Ever Vail Lodging. If these skier estimates are included with day visitors using the Ever Vail parking structure as well as Ever Vail guests that are not new to Vail, the total skier generation is approximately 7 percent of total annual skiers. This estimate is consistent with internal Vail Resorts estimates that the portal will accommodate approximately 10 percent of total annual volume. Ongoing Expenses The largest expenses to be generated by the Ever Vail project are expected to be in the Public Works, Transportation, Facility Maintenance, Police, and Fire Departments. Public Works Under Public Works, the maintenance of new landscaped medians, a new roundabout, and a wider road cross section is estimated to cost $149,000 per year. This includes snow removal, seasonal planting and maintenance, and seasonal holiday decorations consistent with what the Town provides at other major entry ways and intersections. Transit and Transportation LSC Transportation Consultants completed a study of the impacts of Ever Vail on the Town's transit system. LSC estimated the need for three new buses at a cost of $600,000 each. The annual operations cost is estimated at $111,300. EPS has allocated the impacts to Phase I, as it generates the most visitor activity. Economic & Planning Systems, Inc. 1/18 /2011 19 3 -4 -23 Ever Vail Fiscal Impact Analysis January 13, 2011 The new bus route is estimated to cost $111,300 per year to operate. Annual facility maintenance (wear and tear on public spaces and public facilities) is estimated to increase by $73,800 from the new visitor population generated by Ever Vail. Police and Fire There are also impacts to Police and Fire. The Police Department is projected to need an additional entry -level code enforcement officer after the construction of Phase I and Phase II, at a cost of $77,150 per year. The Fire Department would require a new crew member after the construction of Phase I at a cost of $76,600 per year. One -time training and equipment costs for new hires are not included in these figures but are included in capital expenditures below. Table 9 High Scenario - General Fund Revenues and Expenses Ever Vail Fiscal Impact Analysis By Phase Cumulative Description Phase I Phase II Phase I Phase II Revenue Local Taxes: 4.0% Retail Sales Tax [1] $273,000 $100,000 $273,000 $372,000 4.0% Lodging Sales Tax $627,000 $288,000 $627,000 $915,000 Ski Lift Tax $37,100 $9,900 $37,100 $47,000 Intergovernmental Revenue County Sales Tax $18,000 $6,000 $18,000 $25,000 County Road and Bridge Prop. Tax $0 $0 $0 $0 Cigarette Tax $1,800 $900 $1,800 $2,600 Charges for Services Fines and Forfeitures $7,500 $3,700 $7,500 $11,200 Other Charges, Services, and Sales $7,100 $3,600 $7,100 $10,700 Total Revenue $971,500 $412,100 $971,500 $1,383,500 Expenses Municipal Services: Administrative $33,600 $16,800 $33,600 $50,300 Community Development $33,100 $16,500 $33,100 $49,700 Public Safety Police $0 $0 $0 $77,150 Fire $76,600 $0 $76,600 $76,600 Public Works and Transportation Right -of -Way and Landscaping $149,000 $149,000 $149,000 $149,000 Transportation Operations [2] $111,300 $0 $111,300 $111,300 Facility Maintenance $49,200 $24,600 $49,200 $73,800 Total Expenses $452,800 $206,900 $452,800 $587,850 Net Fiscal Impact $518,700 $205,200 $518,700 $795,650 [1] See attached sales tax and retail sales model. [2] LSC Transportation Consultants July 23, 2010 Memorandum. Source: Economic & Planning Systems H 126312 Eva Vail Fiscal A nalyssW ode is \12781241 I m�el.x Is P- Gweral_Fund_Expwses Economic & Planning Systems, Inc. 1/18 /2011 20 3 -4 -24 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 10 Low Scenario - General Fund Revenues and Expenses Ever Vail Fiscal Impact Analysis By Phase Cumulative Description Phase I Phase II Phase I Phase II Revenue Local Taxes: 4.0% Retail Sales Tax [1] $182,000 $68,000 $182,000 $250,000 4.0% Lodging Sales Tax $504,000 $215,000 $504,000 $719,000 Ski Lift Tax $23,000 $4,200 $23,000 $27,200 Intergovernmental Revenue County Sales Tax $13,000 $4,000 $13,000 $17,000 County Road and Bridge Prop. Tax $0 $0 $0 $0 Cigarette Tax $1,500 $700 $1,500 $2,200 Charges for Services Fines and Forfeitures $6,400 $3,200 $6,400 $9,500 Other Charges, Services, and Sales $6,100 $3,000 $6,100 $9,100 Total Revenue $736,000 $298,100 $736,000 $1,034,000 Expenses Municipal Services: Administrative $28,600 $14,200 $28,600 $42,800 Community Development $28,200 $14,000 $28,200 $42,200 Public Safety Police $0 $0 $0 $77,150 Fire $76,600 $0 $76,600 $76,600 Public Works and Transportation Right -of -Way and Landscaping $149,000 $149,000 $149,000 $149,000 Transportation Operations [2] $111,300 $0 $111,300 $111,300 Facility Maintenance $41,900 $20,800 $41,900 $62,700 Total Expenses $435,600 $198,000 $435,600 $561,750 Net Fiscal Impact $300,400 $100,100 $300,400 $472,250 [1] See attached sales tax and retail sales model. [2] LSC Transportation Consultants July 23, 2010 Memorandum. Source: Economic & Planning Systems H'. \20812 E -V. ,A- y - M12 a-V x %3G E,, Fu id Ex., s Economic & Planning Systems, Inc. 1/18/2011 21 3 -4 -25 Ever Vail Fiscal Impact Analysis January 13, 2011 Net Fiscal Impact to the General Fund What is the "bottom line" impact to the General Fund? How does it change if the project is built in phases? At full buildout, the Ever Vail project is estimated to generate a positive fiscal impact to the Town. After accounting for high and low occupancy assumptions, the fiscal impact to the General Fund is estimated at $472,000 to $796,000 annually at full project buildout and stabilization. The higher range of estimated fiscal impacts reflects what EPS believes are reasonable assumptions for the performance of a high quality, well - performing base area resort project with direct lift access. It also presumes that VRDC will actively market the project to fill hotel beds, attract groups during the off - season, and encourage owners to participate in a rental program. The lower fiscal impact estimate represents more "average" performance for Vail properties, with no special marketing or management strategies designed to maximize "hot beds." The project's actual performance will likely lie somewhere between the low and high estimates. The results of the fiscal impact analysis are summarized in Tables 6 and 7 and Tables 9 and 10 for the High and Low Scenarios, respectively. Impacts by Phase The fiscal impacts of both phases of the project are positive. Phase I (east) generates a larger benefit to the Town than Phase II (west) due to higher guest expenditure levels generated by the 102 hotel rooms, 76 branded residences, and 158 condominium units. The hotel is a key economic driver estimated to generate about 25 percent of the visitors and spending from the project under the High Scenario. The branded residences are modeled as performing similarly to the hotel and account for approximately 17 percent of total visitors and expenditures. As noted previously, Phase II does not include hotel rooms or branded residences. Retail sales and sales tax are derived from visitor spending, and Phase I generates more spending that Phase II. The annual net fiscal impact to the General Fund of Phase I by itself is estimated at $300,400 to $519,000. Phase II by itself has a fiscal impact of $100,100 to $205,200 per year. General Fund Sales Tax Calculations How is sales tax accounted for — is it generated from retail space or visitor expenditures? Sales tax is calculated from the spending by guests staying in Ever Vail lodging, and residents and second home owners living in the project. Guests spend money in Vail businesses, generating sales tax revenue to the Town. Guest spending is calculated from estimates of "net new" visitors discussed previously, rather than counting all guest expenditures as generating sales tax. As will be discussed under the Retail Impacts chapter, 90% of guest spending is estimated to occur in Vail. This results in $16.4 million in new sales in the Town after the buildout of both phases, as shown in Table 11. The remaining 10% of guest spending, or $1.7 million, is estimated to be "leakage" to other Vail Valley communities. Total new guest spending including Economic & Planning Systems, Inc. 1/18/2011 22 3 -4 -26 Ever Vail Fiscal Impact Analysis January 13, 2011 leakage is projected to be $18.1 million. The $16.4 million in new sales translates to $372,000 in General Fund sales tax and $248,000 in Capital Fund sales tax. There is also a 15 percent County sales tax, of which 15 percent is remitted back to the Town, as shown. Table 11 Summary of Ever Vail Sales Tax Ever Vail Fiscal Impact Analysis Store Type Phase I Phase II By Phase Net New Sales Restaurant $5,432,000 $1,195,000 Retail $4,678,000 $1,810,000 Grocer /Conv. $2,150,000 $1,149,000 Total $12,260,000 $4,154,000 Existing Sales Tax 4.0% Town Sales Tax 11] General Fund (60 %) $21,540 $272,700 $99,696 Capital Fund (40 % $14 ,360 $181,800 $66,464 1.0% County Sales Tax Sales Tax $123,000 $42,000 15% to Town $18,000 $6,000 Cumulative Phase I Phase I & 11 Net New Sales Restaurant $5,432,000 $6,627,000 Retail $4,678,000 $6,486,000 Grocer /Conv. $2,150,000 $3,299,000 Total $12,260,000 $16,412,000 Existing Sales Tax 4.0% Town Sales Tax 11] General Fund (60 %) $21,540 $272,700 $372,348 Capital Fund (40 % $14 ,360 $181,800 $248,232 1.0% County Sales Tax Sales Tax $123,000 $164,000 15% to Town $18,000 $25,000 Source: Economic & Planning Systems HA20812 Eve VaiF 1Anelyis\M�elsq 21812 -EVS 9 es Tax M we 112- 29- 2110.xIsI &&les Tax Economic & Planning Systems, Inc. 1/18/2011 23 3 -4 -27 Ever Vail Fiscal Impact Analysis January 13, 2011 General Fund One -Time Revenues and Costs What other General Fund Revenues will the project generate? Permit and plan check fees are estimated at $3.1 million for Phase I and $1.7 million for Phase II. Permit and plan check fees are one -time revenues that contribute to the cost of development revue. Since they are one -time revenues during construction, they are not counted in the annual fiscal impact to the General Fund which reflects the project at buildout and stabilization. The one -time revenues and costs to the General Fund are summarized in Table 12. At buildout, the project will have generated a total of $4.8 million in permit and plan review fees. These fees contribute to the cost of development review and other related administrative functions. It costs approximately $65,000 to train and equip a new police officer. A new firefighter costs approximately $7,800 to train and equip. These one -time revenues and expenses are the same in the high and low scenarios. Table 12 General Fund One -Time Revenues and Expenses Ever Vail Fiscal Impact Analysis Totals/ Phase I Phase II Buildout General Fund One -Time Revenues Building Permit Fee $1,875,184 $1,047,944 $2,923,128 Plan Review Fee $1,218,870 $681,164 $1,900,034 Total $3,094,054 $1,729,108 $4,823,162 General Fund One -Time Costs Police Training & Equip. $0 $65,000 $65,000 Fire Training & Equip. $7,800 $0 $7,800 Total $7,800 $65,000 $72,800 Source: Town of Vail, Economic & Planning Systems H:\ 20812 Eve' Vail`i IAn9psWalels \JD812 -fiscd malel- 12 -29D'I Ox Isl36-0ne Time Impxt Economic & Planning Systems, Inc. 1/18 /2011 24 3 -4 -28 Ever Vail Fiscal Impact Analysis January 13, 2011 Other Fund Impacts Besides the General Fund, what are the impacts to other funds? Specifically, what are impacts to the RETT Fund? The other major funds analyzed include the: • Capital Fund • RETT fund • Vail Marketing District • Urban Renewal Authority (URA) For the Capital Fund, both revenues and expenses were analyzed. Spending from the other funds such as the URA was not analyzed because it is discretionary, is independent of conventional Town funds, and is structured in compliance with state regulations pertaining to URAs. Capital Fund Ever Vail will contribute construction use tax (one -time) and sales tax (annual) to the Capital Fund. The Town regulations mandate that all use tax be dedicated to capital projects. Regarding sales tax, the Town has historically allocated 40 percent of total sales tax revenue for capital projects, although this allocation has fluctuated moderately over time. Construction use tax is estimated at $14.4 million at project buildout, as shown in Table 13. Annual 4.0 percent sales and lodging sales tax to the Capital Fund is projected to be $600,000 under Phase I, $258,000 under Phase II, and $858,000 for the project at buildout. The Town has historically collected a traffic mitigation fee on a case -by -case negotiated basis. The fee is $6,500 per peak hour trip and would be approximately $2.5 million for Ever Vail. The transit analysis completed by LSC Transportation Consultants identified a need for three new transit buses at a cost of $1.8 million. The Low Scenario for the Capital Fund is shown in Table 14. The one -time revenues are the same as the High Scenario. Annual sales tax is $213,000 less. Economic & Planning Systems, Inc. 1/18 /2011 25 3 -4 -29 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 13 Capital Fund Impacts — High Scenario Ever Vail Fiscal Impact Analysis Costs and Revenues Phase I Phase II Totals / Buildout One Time Revenues Construction Use Tax $9,291,760 $5,103,520 $14,395,280 Traffic Mitigation Fee [1] $1,251,250 $1,251,250 $2,502,500 Annual Sales Tax by Phase 4.0% Sales Tax (Annual) $181,800 $66,464 4.0% Lodging Sales Tax (Annual) $418,000 $192,000 Total Sales Taxes $599,800 $258,464 Cumulative Sales Tax 4.0% Sales Tax (Annual) $181,800 $248,232 $248,232 4.0% Lodging Sales Tax (Annual) $418,000 $610,000 $610,000 Total Sales Taxes $599,800 $858,232 $858,232 Capital Fund Costs (3 Hybrid Buses @ $600K ea.) $1,800,000 $0 $1,800,000 [1] The Fee is based on a Study completed by Kimley Horn forthe Town of Vail. Source: Economic & Planning Systems H 20812 E— V.1 F:­1 C-1.1 Fsd Economic & Planning Systems, Inc. 1/18 /2011 26 3 -4 -30 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 14 Capital Fund Impacts — Low Scenario Ever Vail Fiscal Impact Analysis Costs and Revenues Phase I Phase II Totals/ Buildout One Time Revenues Construction Use Tax $9,157,200 $5,103,520 $14,260,720 Traffic Mitigation Fee [1] $1,251,250 $1,251,250 $2,502,500 Annual Sales Tax by Phase 4.0% Sales Tax (Annual) $121,096 $45,264 4.0% Lodging Sales Tax (Annual) $336,000 $143,000 Total Sales Taxes $457,096 $188,264 Cumulative Sales Tax 4.0% Sales Tax (Annual) $121,096 $166,344 $166,344 4.0% Lodging Sales Tax (Annual) $336,000 $479,000 $479,000 Total Sales Taxes $457,096 $645,344 $645,344 Capital Fund Costs (3 Hybrid Buses @ $600K ea.) $1,800,000 $0 $1,800,000 [1] The Fee is based on a Study completed by Kimley Horn for the Town of Vail. Source: Economic & Planning Systems H'. 120812 Ev, Val F:—1 A,Jy M —c 12 -29 L— U mW. 12 -29 -2010 'ow.xk 3/ C sb. FFnd Economic & Planning Systems, Inc. 1/18 /2011 27 3 -4 -31 Ever Vail Fiscal Impact Analysis January 13, 2011 RETT, Marketing District, and URA Funds The one -time and annual revenues for the RETT, Vail Marketing District, and URA funds are shown below in Table 15. One -time RETT revenue comes from the initial developer sales of new units, estimated at $6.97 million for both phases. The Recreation Impact Fee is estimated at $783,000, making the total for recreation and open space purposes total $7.75 million. The annual revenue from resales is projected to be $314,000 for both phases, based on an estimate of 4.5 percent of all units turning over each year. The Vail Marketing District is funded by a 1.4 percent tax on lodging sales. Ever Vail would generate an estimated $534,000 per year in lodging tax. The URA revenues include both the Town's property tax as well as those of other taxing entities. In total, URA revenues are expected to be $3.5 million. After 2030 revenue from the Town's 4.69 mills will then flow back to the general fund. Table 15 RETT, Vail Marketing District, and URA Revenues Ever Vail Fiscal Impact Analysis Fund Phase I Phase II Totals / Buildout RETT Fund One Time Revenue RETT - Developer Sales $4,261,000 $2,710,000 $6,971,000 Recreation Impact Fee $468,067 $315,273 $783,340 Total One Time Revenue $4,729,067 $3,025,273 $7,754,340 RETT Fund Annual Revenue RETT on Resales $192,000 $122,000 $314,000 Vail Marketing District 1.4% Lodging Tax (Annual) $366,000 $168,000 $534,000 Urban Renewal Authority Property Tax Town Mill Levy (4.69 Mills) (Annual) [1] $258,000 $104,000 $362,000 Other Taxing Entities (Annual) $2,280,000 $919,000 $3,199,000 Annual Property Tax Increment $2,538,000 $1,023,000 $3,561,000 [1] Reverts to General Fund after URA expires in 2030. Source: Economic & Planning Systems H.12OB12 EzVail Fs A,lJysV,,jelsV20812 -f—m dje12 -29 L010x I S 1 ,3B Otl —Funds Economic & Planning Systems, Inc. 1/18 /2011 28 3 -4 -32 4. ECONOMIC IMPACTS When new retail is introduced into a community, the new competition can cannibalize or erode sales from existing businesses. This Chapter provides a summary of the potential impacts to sales in existing business districts in Vail. The summary is followed by a more detailed presentation of the methods and assumptions used to estimate these potential impacts. Summary of Retail Impacts 1. The spending from new guests in Ever Vail is forecast to be $18.1 million per year with 90 percent of expenditures estimated to occur in the Town of Vail and 10 percent in the Vail Valley. The town derives most of its retail sales from visitor expenditures. Adding to the bed base will introduce new dollars into the Vail economy, contributing to additional retail sales. Ever Vail visitors are estimated to make 35 to 40 percent of their expenditures within Ever Vail, as shown in Figure 1. Approximately 50 to 55 percent of Ever Vail visitors' dollars are expected to occur within the Town of Vail in other retail locations such as Lionshead, Vail Village, and West Vail. The remaining 10 percent of expenditures are estimated to occur elsewhere in the Vail Valley, such as Beaver Creek, Avon, or Edwards. Similar to any guest in Vail, Ever Vail's guests will spend money in multiple locations in the Town. Economic & Planning Systems, Inc. 1/18 /2011 29 3 -4 -33 Ever Vail Fiscal Impact Analysis January 13, 2011 Figure 1 Ever Vail Guest Spending Patterns Ever Vail Fiscal Impact Analysis Total Spending $18.1 Million Ever Vail Vail Village, Lionshead, West Down Valley $6.8 Million Vail $9.6 Million $1.7M qg $295228 a t is 53% A_ A8 85295228 0 }� E -,. i?�ofeactivs i ...5.�..�.,wa. T.- a�.m..1.__— "" 0,1 50 NA Economic & Planning Systems, Inc. 1/18/2011 30 3 -4 -34 Ever Vail Fiscal Impact Analysis January 13, 2011 2. The project is not expected to cannibalize (erode) a significant amount of sales from Vail Village or Lionshead. The West Vail area is estimated to see sales erosion of 1.1 percent. As new retail in Ever Vail is introduced, some sales from other Vail locations will flow to Ever Vail. At the same time, Ever Vail guests will spend money in existing retail establishments in Vail. In most cases and in total, the net dollar flows to existing retail areas are positive. In order for Ever Vail retailers to achieve a minimum level of viability, it is estimated that approximately $17 million in sales would be needed within Ever Vail businesses. Based on Ever Vail's location compared to other retail and lodging districts and the size and mix of retail proposed in Ever Vail, it is estimated that approximately 60 percent of sales would come from guest in the immediate area consisting of Ever Vail and the Ritz Carlton. The balance of 40 percent would need to come from guests staying elsewhere in Vail to support $17 million in sales in Ever Vail. Under these assumptions, Lionshead and Vail Village would "lose" respectively $2.5 and $2.9 million in sales to Ever Vail; however, this is estimated to be replaced by $2.9 to $5.5 million in expenditures from new Ever Vail guests spending money in Lionshead and Vail. Thus, net sales flows are expected to be positive for Lionshead and Vail Village. Due to the competition created by the proposed market, a 1 percent loss in sales is projected for West Vail. The sales flows are quantified below in Table 16 and Figure 2. Vail Village currently achieves $152.7 million in sales, while Lionshead achieves $51.9 million, and West Vail has $71.8 million in sales. The net dollar flows shown are less than 2 percent of existing sales and are only projected to be negative for West Vail. EPS believes that the strength of Lionshead and Vail Village will be the main draw for all Vail guests regardless of where their lodging is. Our opinion is that the removed location of Ever Vail is unlikely to draw significant amounts of sales away from existing retail areas. Table 16 Summary of Town Retail Sales Flows with Ever Vail Ever Vail Fiscal Impact Analysis Erosion to Ever Spending From Potential Dollar Flows Vail Ever Vail Net Dollar Flows Lionshead $2,510,000 $2,954,000 $444,000 Vail Village $2,994,000 $5,486,000 $2,492,000 West Vail $1,938,000 $1,166,000 772000 Total $7,442,000 $9,606,000 $2,164,000 Existing Sales Erosion as % of Potential Erosion vs. Existing Sales Net Dollar Flows (2009) Sales Lionshead $444,000 $51,953,000 0.9% Vail Village $2,492,000 $152,700,000 1.6% West Vail 772000 $71,807,000 -1.1% Total $2,164,000 $276,460,000 0.8% Source: Economic & Planning Systems H: \2812 Eva Va,i Fiscal Analyss \M�els\ 3/812 -EV Sales Tax M Wei 12- 292010,x Is] TaHe E& 1 Economic & Planning Systems, Inc. 1/18/2011 31 3 -4 -35 Ever Vail Fiscal Impact Analysis January 13, 2011 Figure 2 Net Dollar Flows vs. Existing Retail Sales Ever Vail Fiscal Impact Analysis $160,000,000 $140,000,000 $120,000,000 d $100,000,000 n m $80,000,000 0 0 LL $60,000,000 $40,000,000 $20,000,000 $444,000 $2,492,000 $0 Lionshead Vail Village West Vail - $772,000 -$20,000,000 ■ Net Dollar Flows Existing Sales (2009) Economic & Planning Systems, Inc. 1/18/2011 32 3 -4 -36 Ever Vail Fiscal Impact Analysis January 13, 2011 3. The amount of retail and restaurant space proposed in Ever Vail is small in comparison to the Town's retail inventory and is forecasted to have a relatively small impact on existing retailers. VRDC and their consultants have worked closely with EPS to "right size" the amount of retail space in the project. This work has resulted in downsizing the retail from 100,000 to 120,000 square feet in earlier development plans to approximately 53,000 square feet, as currently proposed. This has been based on an expenditure analysis, qualitative analyses and comparisons of other base areas, and from a determination of the minimum numbers and types of services needed for a successful base area portal. The tenant mix is expected to cater largely to hotel and condominium guests rather than to create a new shopping destination in Vail. The amount of retail proposed would result in an 8 percent increase in the amount of retail space in Vail, as shown in Table 17. Table 17 Vail Retail Inventory Ever Vail Fiscal Impact Analysis Vail Village Lionshead West Vail Vail Ever Store Category At Retailers Sq. Ft. # Retailers Sq. Ft. At Retailers Sq. Ft. Total Vail Food & Beverage 54 205,000 21 58,500 11 27,000 290,500 22,103 Gallery /Art/Books 14 21,000 0 0 0 0 21,000 TED Clothing /Fur 32 48,000 8 13,000 0 0 61,000 5,559 Jewelry 12 8,500 2 3,200 0 0 11700 TED Ski Equipment 14 36,000 16 28,000 2 16,000 80,000 5,559 Grocery/Liquor 2 1,400 1 1,000 4 108,000 110,400 14,156 Gift Shop 6 6,000 3 2,400 0 0 8,400 TED Eyewear 2 1,100 1 350 0 0 1,450 TED Miscellaneous 14 10,000 6 10,000 11 25,000 45,000 5,881 Total 150 337,000 58 116,450 28 176,000 629,450 53,258 Source: Town of Vail; Economic & Planning Systems H:- 1217--ll F-Ant} \Da1a\[20812invehona.xls]Vail R-1 Economic & Planning Systems, Inc. 1/18 /2011 33 3 -4 -37 Ever Vail Fiscal Impact Analysis January 13, 2011 Ever Vail Spending Flows This section provides a summary of the methodology and calculations used to project guest spending and retail sales patterns after the Ever Vail project is constructed. The estimates of guest spending were made for two reasons: • First, to estimate sales tax revenue for the Fiscal Impact Analysis • Second, to project the future flow of guest spending and retail sales to estimate the potential impacts of Ever Vail on existing business districts. The complete set of calculations can be viewed in the Sales Tax Model. This is an abbreviated explanation. First, total expenditure potential is calculated. This is the total spending made by Ever Vail guests regardless of location. Next, a capture rate is applied to allocate spending to the Town of Vail and locations outside of Vail. Only expenditures made in Vail count towards Town sales tax and retail sales. Expenditure Potential Expenditure potential is estimated from net new visitor days. Net new visitor days are calculated by multiplying the number of lodging and residential units by a person per unit factor, an annual occupancy factor, a net new adjustment discussed previously, and by 365 days. Visitor days are converted to expenditure potential by multiplying by a dollar per day per person spending figure derived from research by the hospitality industry and visitor intercept surveys in Colorado mountain resorts. The resulting expenditure potential, regardless of where expenditures are made, is estimated at $18.1 million at buildout, as shown in Table 18. Spending by Location The capture rate estimates for guest and resident spending are shown in Table 19. Because Vail has one of the largest concentrations of resort retail in North America, it is estimated to capture the vast majority of guest expenditures (approximately 90 percent). In other words, Vail has a large selection and critical mass of retail space that creates a competitive shopping destination compared to other locations in the Vail Valley. Within Vail, guests (with the exception of parking guests) are estimated to make 25 percent of their retail purchases in Ever Vail and 65 percent in other Vail locations. The retail "capture" in Ever Vail is estimated to be low because it will be much smaller and have a more limited selection than Vail Village and Lionshead Village. Because Ever Vail is proposed to contain a specialty foods market, it is estimated that it will capture 50 to 75 percent of guest spending on Convenience Goods. The remaining spending would be made largely in West Vail grocers. For the third (and final) category of sales, Food and Beverage (dining out), about half of guest spending would occur in Ever Vail, as shown. Economic & Planning Systems, Inc. 1/18 /2011 34 3 -4 -38 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 18 Total Ever Vail Guest Spending Regardless of Location Ever Vail Fiscal Impact Analysis Visitor SlPers. /Day Expenditure Potential by Phase Cumulative Expenditure Potential Description Days Retail Con, F &B Total Retail Con, F &B Total Retail Conv. F &B Total Phase Hotel 31,270 $60 $10 $100 $170 $1,876,000 $313,000 $3,127,000 $5,316,000 $1,876,000 $313,000 $3,127,000 $5,316,000 Branded Residences in Rental Pool 19,660 60 30 75 165 1,180,000 590,000 1,475,000 3,244,000 1,180,000 590,000 1,475,000 3,244,000 Condos in Rental Pool 20,180 60 30 40 130 1,211,000 605,000 807,000 2,623,000 1,211,000 605,000 807,000 2,623,000 Second Home Condos 15,000 30 30 20 80 450,000 450,000 300,000 1,200,000 450,000 450,000 300,000 1,200,000 Residents [1] - -- -- -- -- -- 289,000 189,000 85,000 563,000 289,000 189,000 85,000 563,000 Parking Day Visitors [1] - -- -- - -- -- -- 243,500 74 875 224.625 543.000 243.500 74875 224.625 543.000 Totals 86,110 $5,249,500 $2,221,875 $6,018,625 $13,489,000 $5,249,500 $2,221,875 $6,018,625 $13,489,000 Phase 11 Hotel 0 $60 $10 $100 $170 $0 $0 $0 $0 $1,876,000 $313,000 $3,127,000 $5,316,000 Branded Residences in Rental Pool 0 60 30 75 165 0 0 0 0 1,180,000 590,000 1,475,000 3,244,000 Condos in Rental Pool 19,030 60 30 40 130 1,142,000 571,000 761,000 2,474,000 2,353,000 1,176,000 1,568,000 5,097,000 Second Home Condos 10,880 30 30 20 80 326,000 326,000 218,000 870,000 776,000 776,000 518,000 2,070,000 Residents [1] - -- -- -- -- -- 377,000 247,000 111,000 735,000 666,000 436,000 196,000 1,298,000 Parking Day Visitors [t] - -- - -- - -- -- -- 243,500 74 875 224.625 543.000 487,000 149.750 449.250 1,086,000 Totals 29,910 $2,088,500 $1,218,875 $1,314,625 $4,622,000 $7,338,000 $3,440,750 $7,333,250 $18,111,000 Source: Economic & Planning Systems [1] See Appendix Tables Al through A3 for further detail. H 111 e eveu F,. I A w n -,[ -211 -Ta -112- 1v.--d Par Economic & Planning Systems, Inc. 1/18/2011 35 3 -4 -39 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 19 Ever Vail Guest Spending Capture Rates Ever Vail Fiscal Impact Analysis %Spent in Ever Vail %Spent Elsewhere in Vail % Spent Outside Vail (Leakage) Total Phase Retail Conv. F &B Retail Conv. F &B Retail Conv. F &B Retail Conv. F &B By Phase - Standalone Phase I Hotel 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Branded Residences in Rental Pool 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Condos in Rental Pool 25% 65% 35% 65% 35% 55% 10% 0% 10% 100% 100% 100% Second Home Condos 25% 50% 35% 65% 40% 55% 10% 10% 10% 100% 100% 100% Residents 10% 35% 10% 55% 50% 70% 35% 15% 20% 100% 100% 100% Parking Day Visitors 50% 100% 50% 50% 0% 50% -- - -- -- 100% 100% 100% Phase 11 Hotel -- --- -- -- --- -- — Branded Residences in Rental Pool -- - -- -- - -- - -- -- - -- - -- -- - -- - -- - -- Condos in Rental Pool 0% 0% 0% 90% 100% 90% 10% 0% 10% 100% 100% 100% Second Home Condos 0% 0% 0% 90% 90% 90% 10% 10% 10% 100% 100% 100% Residents 0% 0% 0% 65% 85% 80% 35% 15% 20% 100% 100% 100% Parking Day Visitors 0% 0% 0% 100% 100% 100% -- -- - -- 100% 100% 100% Cumulative Phase I Hotel 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Branded Residences in Rental Pool 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Condos in Rental Pool 25% 65% 35% 65% 35% 55% 10% 0% 10% 100% 100% 100% Second Home Condos 25% 50% 35% 65% 40% 55% 10% 10% 10% 100% 100% 100% Residents 10% 35% 10% 55% 50% 70% 35% 15% 20% 100% 100% 100% Parking Day Visitors 50% 100% 50% 50% 0% 50% - -- - -- -- 100% 100% 100% Phase I & II Hotel 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Branded Residences in Rental Pool 25% 75% 40% 65% 25% 50% 10% 0% 10% 100% 100% 100% Condos in Rental Pool 25% 65% 35% 65% 35% 55% 10% 0% 10% 100% 100% 100% Second Home Condos 25% 50% 35% 65% 40% 55% 10% 10% 10% 100% 100% 100% Residents 10% 35% 10% 55% 50% 70% 35% 15% 20% 100% 100% 100% Parking Day Visitors 50% 100% 50% 50% 0% 50% - -- - -- -- 100% 100% 100% Source: Economic & Planning Systems I2mi2E —1 In I v nnmeis [111- evsziesr 11.1112 -11-i] rapweaayes Economic & Planning Systems, Inc. 1/18/2011 36 3 -4 -40 Ever Vail Fiscal Impact Analysis January 13, 2011 After applying spending capture rates to expenditure potential, dollars of spending are calculated for Vail by locations within Vail, summarized in Table 20. Of the $18.1 million in total spending, $16.4 million is estimated to occur in Vail, or 90 percent of total spending in all store categories. This $16.4 million of spending in Vail generates sales tax. Within Vail, 35 percent of spending in Vail is assumed to occur in Lionshead, or $2.95 million. Sixty -five percent of guest spending in Vail, or $5.5 million, is assumed to occur in Vail Village because of its larger concentration of retail and food and beverage options. There is a small difference in total spending between Tables 17 and 19 due to spreadsheet rounding. Table 20 Ever Vail Guest Spending by Location Ever Vail Fiscal Impact Analysis Expenditures and Sales Generated by Ever Vail Factors Calculations Total Spending by Ever Vail Guests /Residents In Ever Vail $6,806,000 38% In Vail, Not in Ever Vail A $9,606,000 53% Leakage / Down Valley Spending $1,704,000 9% Total Spending $18,116,000 100% Estimated Spending by Location In Ever Vail $6,806,000 38% Lionshead A X 35% $2,954,000 16% Vail Village A X 65% $5,486,000 30% West Vail $1,166,000 6% Down Valley / Leakage $1,704,000 9% Total Spending $18,116,000 100% Economic & Planning Systems, Inc. 1/18 /2011 37 3 -4 -41 Ever Vail Fiscal Impact Analysis January 13, 2011 Retail Sales in Ever Vail Businesses If Ever Vail retail is to achieve a minimum level of viability, it would need to achieve $18.8 million in sales. As shown above, guests are expected to spend only $6.8 million within the project. If guests are only spending $6.8 million in the project, $12 million in sales would need to come from other sources: either inflow from outside Vail, or by capturing sales from existing Vail businesses by offering a competitive and attractive shopping and dining experience. The Ritz Carlton project will add 116 lodging units and generate additional guest expenditure potential. Since it is located immediately adjacent to Ever Vail it is therefore highly likely that Ritz guests will make some of their expenditures in Ever Vail. It is estimated that 40 percent of Ritz expenditures will be made in Ever Vail, or $4.6 million. The detailed calculations can be seen in the Sales Tax Model provided to Town staff. The remaining $7.4 million in sales would need to come either from inflow or through cannibalizing sales from existing businesses through competition. As shown below in Tables 21 through 23, the impact of Ever Vail retail is expected to be minor compared to the total sales levels of Vail Village, Lionshead, and West Vail. Potential Erosion The sales levels in Vail business districts are compared to the $7.4 million in sales that would need to come from cannibalization, as shown in Table 21. Vail Village achieved $152.7 million in sales in 2009, while Lionshead achieved $51.9 million. For confidentiality purposes, West Vail is combined with Cascade Village, East Vail, and Sandstone, referred to as "West Vail" for brevity. In total, West Vail had $71.8 million in sales. Approximations of erosion from each area are shown in total dollars and as a percentage of existing sales. However, as shown previously, Ever Vail guests will also spend money in these other Vail locations, offsetting cannibalization that may occur. This net dollar flow will be estimated separately from potential cannibalization. The sales flows from existing retail nodes are estimated to be $2.9 million in sales come from Vail Village, which is equivalent to 2 percent of its annual sales. For Lionshead, it is estimated to lose $2.5 million in sales, or 5 percent of existing sales. The impact to West Vail is estimated at roughly 5 percent of grocery and Convenience Goods sales, or $1.9 million. As shown, total cannibalization to Ever Vail would need to be $7.4 million in order to achieve $18.8 million in sales. The projected total sales in Ever Vail by source are summarized in Table 22. At the buildout of Phases I and II, $6.8 million in sales would come from Ever Vail Guests. The Ritz Carlton would generate $4.6 million in sales in Ever Vail (and additional spending elsewhere). Cannibalization from Vail Village, Lionshead, and West Vail could contribute $7.4 million if Ever Vail offers a competitive and attractive retail environment. Total sales from all sources are projected to be $18.8 million under these assumptions. Economic & Planning Systems, Inc. 1/18 /2011 38 3 -4 -42 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 21 Potential Erosion from Existing Business Districts Ever Vail Fiscal Impact Analysis Vail Village Lionshead Village West Vail % of Existing % of Existing % of Existing Potential Erosion Description 2009 Sales Sales $ Erosion 2009 Sales Sales $ Erosion 2009 Sales Sales $ Erosion to Ever Vail A By Phase Phase Restaurant $60,218,000 2.0% $1,204,000 $22,158,000 5.0% $1,108,000 $16,243,000 0.0% $0 $2,312,000 Retail $89,484,000 2.0% $1,790,000 $28,037,000 5.0% $1,402,000 $16,798,000 0.0% $0 $3,192,000 Convenience Goods $2.998.000 0.0% � 0 $1.758.000 0.0% LO $38.766,000 5.0% $1.938.000 $1.938.000 Total $152,700,000 $2,994,000 $51,953,000 $2,510,000 $71,807,000 $1,938,000 $7,442,000 Phase II Restaurant $60,218,000 0.0% $0 $22,158,000 0.0% $0 $16,243,000 0.0% $0 $0 Retail $89,484,000 0.0% $0 $28,037,000 0.0% $0 $16,798,000 0.0% $0 $0 Convenience Goods $2.998.000 0.0% �O $1.758.000 0.0% $0 $38.766.000 0.0% 5- LO Total $152,700,000 $0 $51,953,000 $0 $71,807,000 $0 $0 Cumulative Phase Restaurant $60,218,000 2.0% $1,204,000 $22,158,000 5.0% $1,108,000 $16,243,000 0.0% $0 $2,312,000 Retail $89,484,000 2.0% $1,790,000 $28,037,000 5.0% $1,402,000 $16,798,000 0.0% $0 $3,192,000 Convenience Goods $2,998,000 0.0% $0 $1,758,000 0.0% $0 $38,766,000 5.0% $1,938,000 $1,938,000 Total $152,700,000 $2,994,000 $51,953,000 $2,510,000 $71,807,000 $1,938,000 $7,442,000 Phase II Restaurant $60,218,000 2.0% $1,204,000 $22,158,000 5.0% $1,108,000 $16,243,000 0.0% $0 $2,312,000 Retail $89,484,000 2.0% $1,790,000 $28,037,000 5.0% $1,402,000 $16,798,000 0.0% $0 $3,192,000 Convenience Goods $2.998.000 0.0% LO $1,758.000 0.0% �O $38.76000 5.0% $1,938,000 $1.938,000 Total $152,700,000 $2,994,000 $51,953,000 $2,510,000 $71,807,000 $1,938,000 $7,442,000 Source: Economic & Planning Systems 11112e eves r.,®I--M-M812-1- I. - 11211201 anz��m Economic & Planning Systems, Inc. 1/18/2011 39 3 -4 -43 Ever Vail Fiscal Impact Analysis January 13, 2011 Table 22 Projected Sources of Sales in Ever Vail Retail Ever Vail Fiscal Impact Analysis Project Visitors/ Total Sales Residents, and Ritz Carlton Vail Village Lionshead West Vail In Ever Vail Description Parking Spending Spending [1] Erosion [2] Erosion [2] Erosion [2] Businesses By Phase Phase Restaurant $2,349,000 $1,586,250 $1,204,000 $1,108,000 $0 $6,247,250 Retail $1,331,000 $1,395,900 $1,790,000 $1,402,000 $0 $5,918,900 Convenience Goods /Market $1,437,000 $1,586,250 $00 so $1,938,000 $4,961,250 Total $5,117,000 $4,568,400 $2,994,000 $2,510,000 $1,938,000 $17,127,400 Cumulative Phase Restaurant $2,349,000 $1,586,250 $1,204,000 $1,108,000 $0 $6,247,250 Retail $1,331,000 $1,395,900 $1,790,000 $1,402,000 $0 $5,918,900 Convenience Goods /Market $1,437,000 $1,586250 LO LO $1,938,000 $4.961250 Total $5,117,000 $4,568,400 $2,994,000 $2,510,000 $1,938,000 $17,127,400 Phase I & II Restaurant $2,816,000 $1,586,250 $1,204,000 $1,108,000 $0 $6,714,250 Retail $1,857,000 $1,395,900 $1,790,000 $1,402,000 $0 $6,444,900 Convenience Goods /Market $2,133,000 $1,586,250 $0 $0 $1,938,000 $5,657,250 Total $6,806,000 $4,568,400 $2,994,000 $2,510,000 $1,938,000 $18,816,400 Percent of Ever Vail Sales Restaurant 42% 24% 18% 17% 0% 100% Retail 29% 22% 28% 22% 0% 100% Convenience Goods /Market 38% 28% 0% 0% 34% 100% Total 36% 24% 16% 13% 10% 100% Source: Economic &Planning Systems Economic & Planning Systems, Inc. 1/18/2011 40 3 -4 -44 Ever Vail Fiscal Impact Analysis January 13, 2011 Net Dollar Flows Ever Vail guests will make expenditures within Ever Vail as well as other business districts in Vail. By comparing guest expenditures in other locations to the potential sales cannibalization to Ever Vail from other business districts, the net dollar flows are estimated in Table 23. The total spending from Ever Vail Guests in other areas is estimated at $9.6 million, including $2.9 million in Lionshead, $5.5 million in Vail Village, and $1.2 million in West Vail. Potential erosion has been estimated at $7.4 million, resulting in a positive $2.2 million net dollar flow to existing business districts, or $2.2 million in new sales, or a 0.8 percent increase in total sales in these areas. Lionshead and Vail Village are likely to experience a modest increase in sales of 1 to 2 percent with the Ever Vail project. West Vail could lose a small amount of sales, estimated at -1.1 percent. This is due to competition from the proposed Market, which is a store type that does not currently exist in Vail today. It would compete with the prepared and specialty foods sections of the grocery stores, and possibly with beer, wine and liquor stores. Table 23 Projected Net Dollar Flows by Business District Ever Vail Fiscal Impact Analysis Erosion to Ever Spending From Potential Dollar Flows Vail Ever Vail Net Dollar Flows Lionshead $2,510,000 $2,954,000 $444,000 Vail Village $2,994,000 $5,486,000 $2,492,000 West Vail $1.938.000 $1,166.000 772000 Total $7,442,000 $9,606,000 $2,164,000 Existing Sales Erosion as % of Potential Erosion vs. Existing Sales Net Dollar Flows (2009) Sales Lionshead $444,000 $51,953,000 0.9% Vail Village $2,492,000 $152,700,000 1.6% West Vail -$772,000 $71,807.000 -1.1% Total $2,164,000 $276,460,000 0.8% Source: Economic & Planning Systems H: \20812E —ValF 1AnApsM els \'IM2- EVSAes Tax Mwel 12- 292710.xIsJTade ES-1 Economic & Planning Systems, Inc. 1/18 /2011 41 3 -4 -45 5. KEY FINDINGS AND RECOMMENDATIONS 1. Ever Vail development would expand the Town's economic base by expanding visitation. The visitor and resort economy forms a substantial portion of the Town of Vail's economic base. If successful, the hotel and overnight rental condominiums in Ever Vail project will bring additional visitors to the Town, expanding the resort and visitor based economy year round. Because a significant percentage of the users projected to occupy or visit the Ever Vail project are estimated to be net new (approximately 50 to 70 percent based on the occupancy rates of the various buildings within the project), there will be an overall expansion of visitation to Vail. From a fiscal perspective, the Town is expected to experience a positive impact from the Ever Vail project coming from new guests (new room night sales and new expenditures). Retail sales are projected to be net positive in two of the three existing retail centers in Vail, with West Vail seeing a modest contraction. Regarding lodging, the development will introduce new lodging competition in the Vail market and some existing hotels and condo - hotels will be impacted. Consideration: The hotel is an important part of the project and would be most beneficial if constructed in Phase I. 2. The hotel provides the most fiscal and economic benefit to the Town. Hotels have a larger fiscal impact to the Town than a condominium project with a rental program due to higher annual occupancies. The Ever Vail hotel is projected to operate at 60 percent annual occupancy compared to 40 percent annual occupancy for condominiums. The hotel is also expected to bring a larger share of net new guests. From the Fiscal Model, EPS estimates that one hotel room has a fiscal impact of 1.3 times that of one condominium unit in a rental program. The economic benefit to the Town in terms of spending is also larger for hotels compared to condominiums. EPS estimates that one hotel room generates 2.3 times more retail and food and beverage expenditures than a condominium. Consideration: The hotel is an important part of the project and would be most beneficial if constructed in Phase I. 3. The Ever Vail Hotel could bring additional summer and shoulder season business by marketing to groups and events. The 102 room Ever Vail hotel is proposed to include 6,291 square feet of meeting space with a seating area of 4,951 square feet. At 20 square feet per guest, this space could accommodate groups of at least 250 people. There is an additional 3,372 square feet of meeting space proposed in the mixed use portion of the project. Groups of this size (250 or more) need a block of at least 200 rooms that can be sold together. The off seasons present an opportunity to expand group business, as occupancies are low and it is easier to assemble a large block of rooms. Because the hotel room count falls below this threshold, the Economic & Planning Systems, Inc. 1 /18/2011 42 3 -4 -46 Ever Vail Fiscal Impact Analysis January 13, 2011 developer and property managers will need to encourage that condominium owners participate in a rental program to leverage the economic impact of the meeting space. Consideration: Pursue an effective incentive program that motivates an adequate number of condominium owners to join a rental program. Request that VRDC demonstrate a business model for attracting groups and off season business. 4. The Town and Vail Resorts should strive to provide a consistently high quality visitor experience. Part of Vail's success is the consistently high quality guest experience on the mountain and in the Town. Guests should see no difference in the quality of maintenance and services on property maintained by Vail Resorts or the Town. The Ever Vail project should continue the high quality of service and experience by ensuring that public spaces are maintained to the same, or higher, standards as areas maintained by the Town. The operations and maintenance budget for the metropolitan district(s) needs to be adequately funded the segregated from debt service to ensure consistently high standards of upkeep. Consideration: Ensure that Ever Vail will maintain the property and public areas to the same standard as the Town by ensuring the service plan for any future metropolitan districts include a distinct mill levy dedicated to Operations & Maintenance. 5. The 35,000 square feet of office space will make a modest contribution to the Town's economic diversity. The Ever Vail project will replace the existing 31,000 square feet of office space on the site with 35,000 square feet of new space. Currently, it is anticipated that half of the space will be occupied by Vail Resorts Development Company by moving their current operations from Avon to Vail. The remaining space would be available for lease to local professionals and businesses. The employees in this space will add vitality to Ever Vail year round. Consideration: Encourage office development in Phase I. 6. The fiscal and economic analysis indicates that cannibalization of existing retail and restaurant sales by Ever Vail businesses will be minimal. The development team has reduced the amount of retail as a result of discussions with EPS, Town Staff, and other stakeholders in order to address concerns about right- sizing the retail hub. When EPS first became involved in the project, the retail program was proposed to include approximately 100,000 square feet of retail and food and beverage space. Through a collaborative process, EPS, and VRDC and its consultants agreed that the project was over - retailed for this location and the size of the surrounding bed base. The retail program was reduced to approximately 53,000 square feet. New retail space in Ever Vail will have a minimal impact on existing retailers in Vail for two reasons. First, the amount of space is small in comparison to the current retail inventory. Ever Vail would add 53,000 square feet of retail and food and beverage space to an existing inventory of 629,000 square feet, an increase of 8.5 percent. Ever Vail retail would be one -half the size of Lionshead Village and one - seventh the size of Vail Village, requiring proportionally less in sales to be successful. Second, Ever Vail is also expected to generate new visitation and new expenditures, adding to the overall level of guest spending in Vail. Economic & Planning Systems, Inc. 1/18 /2011 43 3 -4 -47 Ever Vail Fiscal Impact Analysis January 13, 2011 This study determined that any sales erosion that occurred from Lionshead or Vail Village would be "cancelled out" by new expenditures. Erosion from West Vail grocers to the proposed market in Ever Vail was estimated at 1.1 percent. 7. The responsibility for the cost of three transit buses should be considered in ongoing discussions and negotiations. The transit analysis completed by LSC Transportation Consultants identified a need for three new transit buses at a cost of $1.8 million. The responsibility for this cost will be part of future discussions and negotiations between VRDC and the Town. Economic & Planning Systems, Inc. 1/18 /2011 44 3 -4 -48 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 18, 2011 ITEM /TOPIC: Matters from Mayor and Council 1/18/2011 ITL1 Oil VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 18, 2011 ITEM /TOPIC: Executive Session: pursuant to: 1) C.R.S. §24- 6- 402(4)(b)(e) - to receive legal advice on specific legal questions; and to determine positions, develop a strategy and instruct negotiators, regarding: Comcast Franchise Agreement Renewal; 2) C.R.S. §24- 6- 402(4)(a)(b) (e) - to discuss the purchase, acquisition, lease, transfer, or sale of property interests; to receive legal advice on specific legal questions; and to determine positions, develop a strategy and instruct negotiators, regarding: discussion concerning negotiations regarding Timber Ridge redevelopment; 3)C.R.S. §24- 6- 402(4)(b) - to receive legal advice on specific legal questions regarding: La Bottega, Inc vs. Village Inn Plaza -Phase V Condominium Association lawsuit. PRESENTER(S): Matt Mire 1/18/2011