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Home My WebLink About2014-01-21 Agenda and Support Documentation Town Council Work SessionVAIL TOWN COUNCIL WORK SESSION AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 2:00 P.M., JANUARY 21, 2014 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 (10 min. ) PRESENTER(S): Warren Campbell 2. ITEM/TOPIC: Eagle County Open Space Discussion. (30 min. ) PRESENTER(S): Toby Sprunk, Eagle County Open Space Coordinator 3. ITEM/TOPIC: Eagle County Economic Development Plan (30 min. ) PRESENTER(S): Chris Romer, Vail Valley Partnership BACKGROUND: Chris Romer will present the approved Eagle County Economic Development Plan to the Town Council and the community. 4. ITEM/TOPIC: Review of the Vail Village Welcome Center Remodel Project (30 min.) PRESENTER(S): Greg Hall and Henry Pratt ACTION REQUESTED OF COUNCIL: The Town Council is asked to review the presentation and provide direction regarding the schematic design option for the Vail Village Welcome Center as the owner of the project prior to seeking out additional public input and proceeding through the entitlement process. Request Town Council provide input into a preferred General Contractor selection process. BACKGROUND: On May 7, 2013 of last year, staff and the Town of Vail’s guest enhancement consultant Stantec/Comm Arts presented various program options for the Vail Village Welcome Center. The Town Council direction was to develop a project that remodeled the existing building and provide restrooms without precluding further enhancements in the future. This direction included enhancements to the inside to open up the space: as well as provide architectural features to the north side of the building to further the guest experience and better accentuate the building presence with the street. The Town of Vail has hired Henry Pratt of GPSL Architects to provide the design for the remodeled space. The 2013 Town of Vail budget included $1.295 million in the Capital Projects Fund for a remodel of this facility in anticipation of the World Alpine Ski Championships in 1/21/2014 2015. STAFF RECOMMENDATION: Provide input regarding the design and project approach. The staff recommends a competitive process to select a CM/GC for the project. 5. ITEM/TOPIC: Holy Cross Energy Grant Lighting Energy Reduction Project (15 min) PRESENTER(S): Greg Hall ACTION REQUESTED OF COUNCIL: The Vail Town Council review the grant and proposed project for energy use reductions and provide direction to staff to proceed to work with Illuminex to develop a project to return to the council to review and approve once the more detailed project scoping, analysis and pricing are known and to supplement the budget up to $87,000 additional dollars from the capital projects fund balance. BACKGROUND: The Town of Vail’s adopted stated sustainability goal is to reduce energy consumption and greenhouse gas emissions by 20% by 2020. The town applied for and received approval for a grant up to $ 170,449 through the Holy Cross Energy’s Think BIG Grant process this last December. The town contacted Illuminex, a LED bulb supplier and retrofit specialty company to assist with the Town’s application. With the assistance of Illuminex, the town identified energy savings potential of up to 1,018,456 kilowatt hours per year as a Phase II lighting project upgrade. This is equal to an additional 6% of the town’s overall energy use goal reduction. The preliminary estimated total cost of the project is $ 477,146. The estimated energy savings if all the lights identified were converted would be $ 76,335,/year. STAFF RECOMMENDATION: Staff recommends the Vail Town Council direct staff to proceed to work with Illuminex to develop a project to return to the council to review and approve once the more detailed project scoping, analysis and pricing are known and to supplement the budget up to $87,000 additional dollars from the capital projects fund balance. 6. ITEM/TOPIC: Matters from the Mayor, Council and Committee Reports 1) Election procedures discussion (15 min.) 7. ITEM/TOPIC: Information Update: 1) Chamonix Master Plan Update; 2) Name recommendation for the new Lionshead Park; 3) November 2013 Vail Business Review; 4) January 2014 VEAC Meeting Minutes; 5) January 2014 CSE Meeting Minutes; 6) Alternative Fuels Analysis Memorandum; (5 min.) 8. 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: update on pending litigation. (15 min.) PRESENTER(S): Kendra Carberry 9. ITEM/TOPIC: Adjournment (4:30 p.m.) NOTE: UPCOMING MEETING START TIMES BELOW (ALL ARE APPROXIMATE DATES AND TIMES AND SUBJECT TO CHANGE) 1/21/2014 -------------------- THE NEXT REGULAR VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT APPROXIMATELY 12:30 P.M. (or TBD), TUESDAY, FEBRUARY 4, 2014 IN THE VAIL TOWN COUNCIL CHAMBERS FUTURE AGENDA ITEMS: Ongoing agenda items TBD: DRB/PEC updates - Warren - WS - 15 min.; Information Updates Attachments: WS - 15 min.; Executive Session items: 30 min.; Consent Agenda: 5 min.; Town Manager Report: 5 min. FUTURE AGENDA ITEMS: Timber Ridge Transfer from TRAHC to TOV - ES - George - 2/4 Commercial Ski STorage Update - ES - George - 2/4 I70 Underpass CDOT IGA - ES - Tom - 2/4 CIRSA Council Training - WS - Matt - 2/4 2015 VVF Council Update - ES - 2/18 Vail Competitiveness Benchmarks Discussion and Next Steps - WS - 2/18 RRC Attendance Survey - WS - 30 min. - 2/18 Wall Street Call-Up - WS & ES - 2/18 Commercial Ski Storage Ordinance 1st reading - ES - 3/4 Commercial Ski Storage Ordinance 2nd reading - ES - 3/18 Clean Up Title 12 Ordinance - TBD Plastic bags - TBD Village Information Center - Greg - TBD Fee Schedule changes - George - TBD Neighborhood Speed Control - TBD - Greg/Dwight Housing Strategic Plan - George - TBD Beaver policy update - Kristen - WS - TBD Vail Valley Medical Center Master Plan Update - 60 min - ES - George - TBD EHU Housing Authority - TBD 2015 WAC construction restrictions discussion - 30 min - WS- George - TBD Sister City discussion - TBD Discussion of future of RSES - TBD Streaming PEC & DRB - TBD 2015 Expectations/Legacy Piece - TBD Update on I-70 noise right lane use - TBD CDOT/Simba Run Agreement - TBD 2015 Town-wide fulfillment - TBD VLMD Term limits - TBD Marijuana policy discussion - WS - Matt - TBD ERWSD Waste Management Plan - TBD 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 ITEM/TOPIC: DRB/PEC Update PRESENTER(S): Warren Campbell ATTACHMENTS: January 13, 2014 PEC Meeting Results January 15, 2015 DRB Meeting Results 1/21/2014 Page 1 PLANNING AND ENVIRONMENTAL COMMISSION January 13, 2014 at 1:00pm TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 MEMBERS PRESENT MEMBERS ABSENT Michael Kurz Bill Pierce Henry Pratt Susan Bird John Rediker Luke Cartin Pam Hopkins Site Visit: 45 minutes 1. Casolar Del Norte - 1183 and 1191 Casolar Del Norte Drive 2. Vail Marriott Mountain Resort - 715 West Lionshead Circle 5 minutes 1. A report to the Planning and Environmental Commission on the administrator’s approval of an amendment to an existing conditional use permit and its conditions of approval, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for the continued temporary use of the tennis facility for conferences and conventions, located at 1300 Westhaven Drive/Cascade Village (Special Development District No. 4, Cascade Village, Area A), and setting forth details in regard thereto. (PEC130040) Applicant: Vail Cascade Resort and Spa, represented by Don MacLachlan Planner: Joe Batcheller Joe Batcheller briefed the Commission on the nature of the CUP request and the administrative approval thereof. Commissioner Cartin asked if Community Development had received any feedback from neighboring property owners. Joe Batcheller answered no. Commissioner Rediker asked if any complaints had been filed since the previous CUP approval. Joe Batcheller answered no. There was no motion to call up the administrative approval. 20 minutes 2. A request for the review of a final plat, pursuant to Chapter 13-4, Minor Subdivisions, Vail Town Code, to allow for the creation of Lots 2E and 2W, Block 1, Vail Lionshead Filing 2, located at 250 South Frontage Road West/Lot 2, Block 1, Vail Lionshead Filing 2, and setting forth details in regard thereto. (PEC130043) Applicant: HCT Development, LLC, represented by TJ Brink Planner: George Ruther ACTION: Approved MOTION: Kurz SECOND: Rediker VOTE: 6-0-0 George Ruther gave a presentation per the staff memorandum. Commissioner Kurz asked if rockfall hazard mitigation was needed. George Ruther answered no. 1/21/2014 Page 2 Commissioner Pratt asked if this would facilitate the sale of said property. George Ruther stated that would eventually occur. The applicant had nothing further to add. There was no public comment. The Commission had no further comment or questions. 20 minutes 3. A request for the review of a variance from Section 12-6D-8, Density Control, Vail Town Code, pursuant to Chapter 12-17, Variances, Vail Town Code, to allow for two dwelling units on a nonconforming lot, located at 302 Mill Creek Circle/Lot 7, Block 1, Vail Village Filing 1, and setting forth details in regard thereto. (PEC130041) Applicant: W illiams Family Trust, represented by Devlin Law Group Planner: Warren Campbell ACTION: Approved MOTION: Kurz SECOND: Cartin VOTE: 3-1-2 (Rediker opposed, Hopkins and Bird recused) Commissioners Bird and Hopkins recused as they had conflicts of interest. Jonathan Spence gave a presentation per the staff memorandum. Commissioner Kurz asked George Ruther if Community Development is concerned that an approval would grant a special privilege and how precedence might be set. George Ruther stated that staff is satisfied if the PEC finds that there is no grant of special privilege. This is a case by case review and barring no broad reaching statements within the findings, there would be no precedence. Dominic Mauriello gave a presentation, speaking to the criteria for approval. He suggests that an additional finding be made stating the following: “The variance allows this lot to be a conforming lot with respect to density/lot size and the variance does not expire, and survives demolition and redevelopment of the property.” Commissioner Kurz inquired as to staff’s agreement with the suggested additional finding which would grant the variance in perpetuity should the existing structure be demolished?” George Ruther stated that this request is somewhat unique. The subject at hand is a constraint resulting from the lot, not the structure. Therefore Community Development is comfortable with this finding so as not to create confusion in the future should the structure be demolished. Commissioner Cartin inquired as to whether staff ever recommended a variance with a similar finding extending conformity beyond the life of the structure. George Ruther explained that this was not a typical scenario. Jonathan Spence stated that the proposed finding would give clarity to what can occur on this lot in the future. Commissioner Kurz stated that this finding creates a unique approval, yielding to no possible future precedence. 1/21/2014 Page 3 John Rediker stated his opposition because he felt that when zoning regulations change people find themselves in similar situations that create hardships. Such an approval would create precedence in his opinion. 15 minutes 4. A request for the review of a final plat, pursuant to Chapter 13-12, Exemption Plat Review Procedures, Vail Town Code, to allow for the relocation of an existing platted building lot, located at 1191 Casolar Del Norte Drive/Lot 5, Casolar Vail, and setting forth details in regard thereto. (PEC130038) Applicant: Todger Anderson, represented by Braun Associates Planner: Warren Campbell ACTION: Approved MOTION: Kurz SECOND: Hopkins VOTE: 6-0-0 Commissioner Pratt explained that items 4 & 5 will be discussed together, but voted upon separately. Jonathan Spence gave a presentation per the staff memorandum. Tom Braun gave a power point presentation. Commissioner Kurz stated that the request was a good solution to a clear hardship. Commissioner Rediker agreed there was a clear hardship. The remaining Commissioners stated there agreement regarding a clear hardship. There was no public comment. 15 minutes 5. A request for the review of a variance from Section 12-6E-8, Density Control, Vail Town Code, pursuant to Chapter 12-17, Variances, Vail Town Code, to allow for an increase in dwelling units per acre to facilitate the construction of two single-family residences, located at 1183 and 1191 Casolar Del Norte Drive/Lots 4 and 5, Casolar Vail, and setting forth details in regard thereto. (PEC130010) Applicant: Todger Anderson, represented by Braun Associates Planner: Warren Campbell ACTION: Approved MOTION: Kurz SECOND: Hopkins VOTE: 6-0-0 This item was discussed in conjunction with Item 4 above. 30 minutes 6. A request for the review of a major exterior alteration, pursuant to Section 12-7H-7, Major Exterior Alterations or Modifications, Vail Town Code, to allow for an addition to increase the number of accommodation units, located at 715 West Lionshead Circle (Vail Marriott Mountain Resort)/Lot 1, West Day Subdivision, and setting forth details in regard thereto. (PEC130042) Applicant: Diamond Rock Hospitality Company, represented by GPSL Architects Planner: Jonathan Spence ACTION: Approved MOTION: Cartin SECOND: Bird VOTE: 5-0-1 (Pratt Recused) CONDITION(S): 1. This exterior alteration or modification approval is contingent upon the applicant obtaining Town of Vail approval of the associated design review application. 1/21/2014 Page 4 2. The applicant shall mitigate the impact on employee housing of this development in accordance with the provisions of Chapter 12-23, Commercial Linkage, Vail Town Code prior to the issuance of any building permit. 3. A traffic mitigation fee of $6,500.00 per PM Peak Hour net increase of vehicular trips for a total traffic mitigation fee of $6,500.00 x 9 = $58,500.00, shall be paid to the Town of Vail by the applicant prior to issuance of any certificate of occupancy. Commissioner Pratt recused himself due to a conflict of interest. Luke Cartin explained he has no conflict of interest. Jonathan Spence gave a presentation. Susan Bird asked for clarification on the elevation drawings. Jonathan Spence walked Commissioner Bird through the plans. Commissioner Kurz opened up public comments. Jeff Andrews, representing Vail Spa – “Will the roof height increase at all?” Jonathan Spence answered no and explained why. Jeff Andrews asked if the new northeast unit will expand the current roof form. Jonathan Spence answered no. Commissioner Kurz commented the need for this proposal. Luke Cartin agreed. Jonathan Spence detailed the parking requirement and the existing number of spaces under control of the Marriott Michael Kurz asked when the fee-in lieu for commercial linkage was due. Jonathan Spence explained at the time a building permit application is submitted. 7. A request for the review of a variance from Section 12-14-17, Setback from Watercourse, Vail Town Code, pursuant to Chapter 12-17, Variances, Vail Town Code, to allow for the construction of gross residential floor area within the prescribed setback, located at 1975 Placid Drive Unit 33/Lot 33, Vail Village West Filing 2, and setting forth details in regard thereto (PEC130025). Applicant: Rosslyn May Valentine Residence Trust, represented by Richard Bolduc Planner: Joe Batcheller ACTION: Table to February 24, 2014 MOTION: Cartin SECOND: Rediker VOTE: 6-0-0 8. A request for the review of variances from Section 12-7D-9 Landscaping and Site Development, Section 12-7D-10 Parking and Loading, Section 14-5-1, Minimum Standards and Section 14-5-2 Other Requirements, Vail Town Code, pursuant to Chapter 12-17, Variances, Vail Town Code, for relief from the minimum landscape requirement, the parking space dimensional requirement, the snow storage requirement and to allow parking in the front setback, to facilitate the construction of a freestanding building with associated parking, circulation and landscape improvements, located at 2171 North Frontage Road West (McDonald’s)/Lot 2B, Vail Das Schone Filing 3, and setting forth details in regard thereto. (PEC130018) Applicant: McDonald’s USA, LLC, represented by Robert Palmer Planner: Jonathan Spence ACTION: Table to March 10, 2014 1/21/2014 Page 5 MOTION: Cartin SECOND: Rediker VOTE: 6-0-0 9. A request for the review of a conditional use permit, pursuant to Section 12-7D-2, Conditional Uses, Vail Town Code, to allow for a drive-up facility, located at 2171 North Frontage Road West (McDonald’s)/Lot 2B, Vail Das Schone Filing 3, and setting forth details in regard thereto. (PEC130014) Applicant: McDonald’s USA, LLC, represented by Robert Palmer Planner: Jonathan Spence ACTION: Table to March 10, 2014 MOTION: Cartin SECOND: Rediker VOTE: 6-0-0 10. Approval of December 16, 2013 minutes MOTION: Kurz SECOND: Hopkins VOTE: 5-0-1 (Pratt Recused) 11. Information Update 12. Adjournment MOTION: Cartin SECOND: Bird VOTE: 6-0-0 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. Times and order of items are approximate, subject to change, and cannot be relied upon to determine at what time the Planning and Environmental Commission will consider an item. 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 10, 2014 in the Vail Daily. 1/21/2014 Page 1 DESIGN REVIEW BOARD AGENDA PUBLIC MEETING January 15, 2014 Council Chambers 75 South Frontage Road West - Vail, Colorado, 81657 MEMBERS PRESENT MEMBERS ABSENT Tom DeBois Rollie Kjesbo Libby Maio Brian Gillette Andy Forstl PROJECT ORIENTATION 1:30pm SITE VISITS 1. Breakaway West Condominiums - 1023 Lions Ridge Loop 2. Precourt Residence – 1475 Buffehr Creek Road 3. 2754 Snowberry Drive LLC - 2754 Snowberry Drive 4. Vail Mountain Resort Marriott - 715 West Lionshead Circle 5. Chedraui Residence - 68 East Meadow Drive MAIN AGENDA 3:00pm 1. Timber Ridge Affordable Housing DRB130570 / 20 minutes Warren Final review of new construction (multi family) 1280 North Frontage Road/Lots 1-5, Block C, Lion’s Ridge Filing 1 Applicant: Timber Ridge Affordable Housing Corporation, represented by Rick Pylman ACTION: Approved with condition(s) MOTION: Kjesbo SECOND: Maio VOTE: 4-1-0 (Gillette opposed) CONDITION(S): 1. In conjunction with the building permit, the applicant shall revise the plans to show all standing seam roof areas as using the “Cool Weather Copper” metal roofing material. 2. Precourt Residence DRB130572 / 15 minutes Joe Final review of an addition (bedroom, roof) 1475 Buffehr Creek Road/Lot 1, Block 4, Lion’s Ridge Filing 1 Applicant: Amanda Precourt, represented by Krueger Architecture ACTION: Approved MOTION: Kjesbo SECOND: Gillette VOTE: 5-0-0 3. Plaza Lodge Sign Program DRB140005 / 10 minutes Joe Final review of a sign application (business ID sign) 291 Bridge Street/ Lot F-K, Block 5C, Vail Village Filing 1 Applicant: Plaza Lodge Associates, LLC, represented by Tyson Deardruff ACTION: Approved with condition(s) MOTION: Kjesbo SECOND: Maio VOTE: 5-0-0 CONDITION(S): 1. The applicant shall use brackets and blade lighting which have a satin black finish, with stainless steel braces. 1/21/2014 Page 2 4. Vail Mountain Resort Marriott DRB130564 / 20 minutes Jonathan Final review of an addition (guest rooms) 715 West Lionshead Circle/Lot 1, West Day Subdivision Applicant: DiamondRock Hospitality Company, represented by GPSL Architects ACTION: Tabled to February 5, 2014 MOTION: Maio SECOND: Kjesbo VOTE: 5-0-0 5. Chedraui Residence DRB130573 / 20 minutes Joe Conceptual review of a minor exterior modification and additional GRFA 68 East Meadow Dr Units 110 & 111/Lot O, Block 5D, Vail Village Filing 1 Applicant: Antonio Chedraui, represented by Russell Gies ACTION: Conceptual, no vote 6. 2754 Snowberry Drive Residence DRB140002 / 15 minutes Joe Conceptual review of a new duplex 2754 Snowberry Drive/Lot 15, Block 9, Vail Intermountain Applicant: 2754 Snowberry Drive LLC, represented by Intention Architecture ACTION: Conceptual, no vote 7. Breakaway West Condominiums DRB130569 / 15 minutes Joe Conceptual review of a minor exterior alteration (re-skin) 1023 Lions Ridge Loop/Lot B-3, Block B, Lions Ridge Filing 1 Applicant: Breakaway West Condominium Association, represented by Andrew Cuomo ACTION: Conceptual, no vote STAFF APPROVALS Alaska Fur Gallery DRB130504 Joe Final review of a sign application (hanging) 141 East Meadow Drive/Lot P, Block 5D, Vail Village Filing 1 Applicant: Manuel Hernandez Leaman Residence DRB130545 Warren Final review of an addition (loft/stairs) 1998 Sunburst Drive Unit A/Lot 19, Vail Valley Filing 3 Applicant: Lee Leaman, represented by Beth Levine Architect Inc. Fleeger Residence DRB130560 Warren Final review of changes to approved plans (extension) 2950 Booth Creek Drive/Lot 2, Block 3, Vail Village Filing 11 Applicant: Matt & Candee Fleeger, represented by Berglund Architects Timber Ridge DRB130561 Joe Final review of a minor exterior alteration (walkway) 1280 N. Frontage Road/Lot 1-5,Block C, Lions Ridge Filing 1 Applicant: Timber Ridge Affordable Housing Corp, represented by Falcon Exterior Gerald R. Ford Amphitheater Social Courtyard DRB130563 Warren Final review of changes to approved plans (restrooms, tensile structure) 540 South Frontage Road East/Unplatted Applicant: Vail Valley Foundation, represented by Zehren and Associates. 1/21/2014 Page 3 Dobyns Residence DRB130565 Joe Final review of a sign application (construction sign) 3078 Booth Falls Road/Lot 10, Block 2, Vail Village Filing 12 Applicant: Windsurfer LLC, represented by George Lamb Johnson Residence DRB130566 Jonathan Final review of a minor exterior alteration (windows, doors) 1195 Vail Valley Drive/Lot 14, Block 6, Vail Village Filing 6 Applicant: Susan Johnson, represented by George Shaeffer Construction Nields Residence DRB130571 Joe Final review of a minor exterior alteration (deck) 767 Potato Patch Drive Unit 3/Lot 34, Block 1, Vail Potato Patch Filing 1 Applicant: Morgan & Belinda Neilds, represented by AGO Studios Avila Residence DRB130568 Joe Final review of changes to approved plans (AC unit) 44 West Meadow Drive/Lot I, Vail Village Filing 2 Applicant: Hilda Avila, represented by Karen Aldretti-Lee Town of Vail Police Department DRB140004 Jonathan Final review of a minor exterior alteration (garage doors) 75 South Frontage Road West/Unplatted Applicant: Town of Vail, represented by John King Giordano Residence OTC14-0001 Martin Final review of OTC Re-Roof Permit 2427 Chamonix Lane/Lot 21, Vail Das Schone Filing 1 Applicant: G & G Roofing, represented by Ed Campling Cynthia Pendergast Revocable Trust OTC14-0002 Martin Final review of a hot tub 1826 Alta Circle/Lot 41, Vail Village West Filing 1 Applicant: Cathy Heath, represented by 10th Mountain Builders The applications and information about the proposals are available for public inspection during regular office hours in the project planner’s office, located at the Town of Vail Community Development Department, 75 South Frontage Road. Please call 479-2138 for information. Sign language interpretation available upon request with 24 hour notification. Please call 479-2356, Telephone for the Hearing Impaired, for information. 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 ITEM/TOPIC: Eagle County Open Space Discussion. PRESENTER(S): Toby Sprunk, Eagle County Open Space Coordinator 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 ITEM/TOPIC: Eagle County Economic Development Plan PRESENTER(S): Chris Romer, Vail Valley Partnership BACKGROUND: Chris Romer will present the approved Eagle County Economic Development Plan to the Town Council and the community. ATTACHMENTS: Eagle County Economic Development Plan Memorandum Eagle County Economic Development Plan Presentation Eagle County Economic Development Plan 1/21/2014 To: Town Council From: Chris Romer, Vail Valley Partnership Date: January 21, 2014 Subject: Eagle County Economic Development Plan I. BACKGROUND Chris Romer of the Vail Valley Partnership will present the approved Eagle County Economic Development Plan to the Town Council and the community. ATTACHMENTS Eagle County Economic Development Plan Presentation Eagle County Economic Development Plan 1/21/2014 Vail Valley Partnership  ~  Economic Council of Eagle County 1/21/2014 A brief history 2010: • Governor Hickenlooper begins “bottom up” statewide economic development planning with meeting in Edwards (Colorado Blueprint) • Economic Council of Eagle County & Vail Valley Partnership collaborate to develop Eagle County Economic Development Plan 2012: • Vail Valley Partnership and Economic Council of Eagle County merge business operations 1/21/2014 A brief history 2013: • Economic Development Leadership Council formed and tasked with providing private industry voice to a detailed economic development work plan & measureable objectives • Increased regional and statewide engagement & participation with a variety of public & private initiatives related to economic development • Economic development plan developed 2014: • Eagle County funding secured and plan implementation efforts begin 1/21/2014 Building a Foundation for Success The Partnership, via Economic Council of Eagle County efforts, is building a foundation for future economic development success: 1. Regional representation and participation 2. State level representation and participation Which leads to: Increased local opportunities and engagement. The priority is to improve the economic fortunes of Eagle County. 1/21/2014 Local Economic Growth Deﬁned • Strong, sustainable growth of individual incomes  • Growth of sales tax revenue  • Creation of a local buying culture  • Healthy population growth (age 25+) • Increased business longevity  • Diversiﬁcation of industry for year-round availability  • Job opportunities with promotional potential ($40-80k) • Business opportunities for entrepreneurs 1/21/2014 Economic Development Plan Key Points: • Plan has been developed and adopted. Six core objectives have been identiﬁed. • The plan is designed to supplement and support local municipal efforts and to enhance relationships and opportunities with regional and state efforts. • Work is underway to develop speciﬁc implementation timeline for 2014 and beyond. 1/21/2014 Economic Development Plan Two main areas of emphasis were identiﬁed by the Leadership Council as the core pillars of a new economic development plan. 1. Business Retention and Expansion  2. Business Recruitment Goal: Create new opportunities & jobs, and promote economic diversiﬁcation 1/21/2014 Eagle County Economic Development Core Objectives 1. Build a Business-Friendly Eagle County Make Eagle County an attractive place to conduct business by creating solid lines of communication to and between local governments and a network of easily navigable support resources. 1/21/2014 Eagle County Economic Development Core Objectives 2. Create and Market an Eagle County Business Brand Raise Eagle County’s proﬁle as a viable place to build successful business and career opportunities through speciﬁc coordinated marketing efforts. 1/21/2014 Eagle County Economic Development Core Objectives 3. Retain, Grow and Recruit Businesses Develop guiding principles, programming and support resources to sustain and grow local businesses and recruit new businesses to Eagle County. 1/21/2014 Eagle County Economic Development Core Objectives 4. Protect our Natural Environment Maintain the long-term health of our natural environment through cooperative community efforts and the establishment of environmental standards criteria for businesses seeking public economic development assistance. 1/21/2014 Eagle County Economic Development Core Objectives 5. Expand opportunity in our leading sectors (Tourism & Recreation, Health and Wellness & Creative Industries) Focus the majority of economic development efforts on our leading and emerging sectors. Play to our strengths as informed by relevant anticipated market conditions and emerging demographic trends. 1/21/2014 Eagle County Economic Development Core Objectives 6. Provide support for a Quality Workforce (Affordable Housing/Education/Transportation) Enhance and maintain the amenities needed to sustain and support a high-quality workforce. 1/21/2014 What would this look like in Eagle County? • A place that cultivates entrepreneurs, home based businesses & telecommuting  • A place that changes the perceptions of mountain living (strong work ethic)  • A collaborative effort to get people to think of our area as a viable place to do business in addition to being a recreational mecca • A place that strives for ‘Quality of Career Opportunities’ as well as ‘Quality of Life’ • A place that creates opportunities attractive to all generations (Boomers, Gen X and Gen Y) 1/21/2014 Questions? 1/21/2014 The Eagle County Economic Development Plan September 2013 Brooke Heather Photographer DRAFT 1/21/2014 2 vailvalleypartnership.com Eagle County Economic Development Strategic Plan TABLE OF CONTENTS Page Executive Summary ................................................................................................... 3 Introduction ................................................................................................................ 4 The Current State of Eagle County’s Economy ......................................................... 6 Economic Development Leadership Council ............................................................ 13 Economic Development Goals & Core Objectives ................................................... 14 Strategies & Actions .................................................................................................. 15 Objective 1: Build a Business-Friendly Eagle County ........................................ 15 Objective 2: Create and Market an Eagle County Business Brand ..................... 17 Objective 3: Retain, Grow, and Recruit Businesses ............................................ 19 Objective 4: Protect Our Natural Environment ................................................... 21 Objective 5: Expand Opportunity in our Leading Sectors ................................... 23 Objective 6: Provide Support for a Quality Workforce ....................................... 27 Performance Measures ............................................................................................... 29 Regional Connections: Region 12 Economic Development Plan: NWCCOG ............................................... 32 State Connections: State Economic Development Plan: Colorado Blueprint ........................................... 33 Appendix of Institutional Resources .......................................................................... 34 Additional Resources ................................................................................................. 35 1/21/2014 3 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Executive Summary This economic development strategic plan is the result of a six-month public engagement process designed to give private enterprise a voice on how Eagle County should best structure local economic development efforts to support economic vitality. Historical efforts in Eagle County were geared toward keeping up with growth and infrastructure demands. The economic realities of 2008 and beyond mean that we must focus on proactive economic development, targeting the two primary goals outlined in this plan: retention and expansion of current businesses and recruiting new businesses to Eagle County. This plan is designed to create new opportunities and jobs within Eagle County by broadening the economic base in existing areas of strength and helping to support developing industries. These efforts will help increase sales tax revenues, grow and retain jobs, provide support for businesses to create year-round availability and create business opportunities for entrepreneurs. In order to reach our future economic development goals we must pursue targeted and aligned objectives unique to Eagle County. Six core objectives have been developed to position Eagle County’s economy for long term success: 1. Build a Business-Friendly Eagle County 2. Create and Market an Eagle County Business Brand 3. Retain, Grow and Recruit Businesses 4. Protect our Natural Environment 5. Expand Opportunity in our Leading Sectors (Tourism and Recreation, Health & Wellness and Creative Industries 6. Provide Support for a Quality Workforce (Affordable Housing, Education, Transportation and Health) This plan is designed to supplement and support (not replace) municipal level economic development efforts, providing a tie to countywide efforts. Countywide efforts need to be similarly supplemented through active participation at regional and state levels to ensure Eagle County benefits from efforts occurring around us. A commitment to collaboration at the regional and state level increases local opportunities and engagement, helping to reach the goals outlined in this plan, directly benefiting Eagle County stakeholders. In order to achieve the desired outcomes, this plan will require public sector leadership and participation to initiate, and private sector participation to successfully implement. As this plan was developed with input from the community, we hope you will share your thoughts and feedback with us to improve this plan moving forward. 1/21/2014 4 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Introduction: A Brief History & Rationale for Implementing a Proactive Economic Development Plan Countywide efforts in the economic development realm date back to 2005 with the creation of the Economic Council of Eagle County. This coalition of private and public partners focused on gathering and analyzing economic data and acting on pressing needs in the County. Efforts in these early years were targeted towards keeping up with growth and infrastructure demands. The Great Recession, which began in December of 2007, brought to light the vulnerabilities that exist in our tourism-dependent economy. This period has been a stark reminder of the need for local actors to take charge of our economic fortunes through sustained efforts to increase economic diversification, grow and retain jobs, build the local tax base, and generate wealth. In January 2012, the Vail Valley Partnership consolidated the traditional roles of the Economic Council of Eagle County and concentrated its efforts towards creating a more proactive approach to economic development. These efforts include; handling general economic development inquires and promotions, facilitating and participating in greatly expanded state, regional, and local collaborative efforts, conducting economic research to inform data-driven decision making, and facilitating related community program efforts such as the Health & Wellness Initiative and the Economic Development Leadership Council. While these efforts have better positioned Eagle County on the economic development front, a more clearly defined long-term strategy is required. The City of Detroit serves as a cautionary tale of a community that let its innovative spirit and population slip away over time, even though it was once one of the most robust centers of innovation in the United States. Innovation must be maintained and encouraged locally in order to survive. We should all celebrate Eagle County’s success, led over the past 50 years by Vail’s rise as a world-renowned mountain resort destination. But, we should also reaffirm our commitment to strategic community endeavors that will positively influence economic change and increase the likelihood that Eagle County’s next 50 years will be just as bright. Economic development is everyone’s business because quality jobs provide us with much more than our basic needs of food, shelter, and clothing. Gainful employment also represents our healthcare, our children’s education, and our retirement. A good job is the basis for quality of life. Communities that proactively build environments that are supportive of their local employers, attractive to new ones, and are encouraging of entrepreneurs, are better positioned to maintain innovation and solidify economic resilience than communities that don’t. The continuing viability of any local economy depends upon thoughtful long-term planning and practical approaches to economic development. With this in mind, the Vail Valley Partnership engaged the community throughout 2013 to develop a clear vision for how Eagle County should support and invest in economic development. The Vail Valley Partnership is uniquely positioned to build on the past successes of the Economic Council of Eagle County and to serve as a credible bridge that marshals support between the many public and private partners that are essential to the success of any comprehensive local economic development strategy. 1/21/2014 5 vailvalleypartnership.com Eagle County Economic Development Strategic Plan The Economic Development Strategic Plan that follows is a synthesis of over six months of community input from the Economic Development Leadership Council, interviews with business owners and stakeholders from around the region, and feedback from engaged community members. It is influenced by an honest appraisal of Eagle County’s economic strengths and weaknesses as discussed below, and a careful evaluation of the opportunities and challenges that are ahead. 1/21/2014 6 vailvalleypartnership.com Eagle County Economic Development Strategic Plan The Current State of Eagle County’s Economy Below is a brief review of the current state of the Eagle County economy and an overview of the local business climate. This information has informed the objectives and strategies recommended by the strategic plan that follows. Base Economic Indicators Eagle County has experienced slow and steady gains on most of the core economic indicators since 2011. Retail sales for 2012 totaled $2,095,218,000, a 1.4% increase from the prior year. Real estate has seen solid growth in 2012 as compared to 2011, with increases in total dollar volume by 31% and number of transactions by 27%. Year on year changes since 2008 for the size of the labor force, number of individuals employed, and average weekly wages are shown in Figure 1. All three indicators saw positive growth in 2012. While all the core economic indicators have realized positive growth in Eagle County for 2012, considerable gaps still exist between statewide performance on average weekly wages and average earnings per job. Additionally, 2012 sales tax collections, retail sales, and total assessed values of commercial property were still substantially lower than what they were in 2008 (17%, 11%, and 16% respectively). Because commercial property values are updated every other year, it is expected that positive growth will be realized in 2013. When comparing local income levels to statewide figures, it is important to recognize that Eagle County has a greater proportion of individuals in the accommodations and food services industry sector than Colorado as whole. While this may make it more challenging to close local versus state gaps, it is also important to note that local average weekly wages within this sector are 56% higher that the state as a whole, largely off-setting the disproportionality in industry sectors that exists. 1/21/2014 7 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Figure 1. Year on Year Changes in Labor Force, Employment and Average Weekly Wages, 2008-2012. -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 2008 2009 2010 2011 2012 Pe r c e n t C h a n g e f r o m P r i o r Y e a r Labor Force Employment AWW Population/Demographics The 2010 census showed that the Eagle County population stood at 52,197 individuals. While the 2008 economic downturn resulted in some dampening in future growth projections, the 2011 Colorado State Demographer’s office still projected 19% growth between 2010 and 2015 and nearly 37% growth between 2010 and 2020, resulting in a countywide population of about 71,000 individuals within the next six years. The projected continuous growth of the county population is already being mirrored by the year to year growth in the Eagle County Schools’ Pre-K through 12 student population, which did not see negative growth during even the most economically challenging period. The fall 2007 Student October Count for the district was at 5,724 students and has grown by 12% to 6,408 students in fall of 2012. Although it is predicted that all segments of the population will experience growth, the greatest growth is expected to be among those aged 60 or higher and also the Hispanic/Latino population. The 2010 census showed that the Hispanic/Latino community in the county comprised 30% of the overall county population and the fall 2012 Student October Count for the school district showed that this population was now the majority within the local public schools at nearly 50%. Labor Force Characteristics In 2012, Eagle County’s labor force had seen the first positive year on year growth since 2008. Given the corresponding drop in unemployment over the same period, this is another indicator that Eagle County’s economic health is improving. Additionally, monthly labor statistics through June 2013 show the workforce in Eagle County is trending somewhat higher compared to the same period in 2012, while unemployment numbers are declining, which is further evidence that economic health continues to improve into 2013. 1/21/2014 8 vailvalleypartnership.com Eagle County Economic Development Strategic Plan An indicator that takes into account both the size of the workforce as well as the number of individuals employed is sometimes referred to as “Economic Stress”. This indicator is calculated by first looking at year-to-year changes in both the number of individuals in the labor force and, separately, the number of individuals employed. The year-to-year growth ratio that is yielded for the labor force is then subtracted from the year-to-year growth ratio in employment. Positive values indicate a more favorable year-to-year growth balance on the two combined factors. Figure 2 shows that Economic Stress was greatest in 2009, and has been improving since that year, with a return to a positive value by 2011. Figure 2. Annual Economic Stress (Employed Workers Ratio – Labor Force Ratio) -0.05 -0.04 -0.03 -0.02 -0.01 0 0.01 0.02 2007 2008 2009 2010 2011 2012 1/21/2014 9 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Figure 3 shows the breakdown of the proportion of employees in each sector within the county. Accommodations and Food Services is the largest sector followed by Arts, Entertainment & Recreation. This is a significant change from 2008 when the Construction sector was the second largest employer in Eagle County. Figure 3. Employees by Industry Sector. 1/21/2014 10 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Quality of Life As the home of two world renowned ski areas, an abundance of outdoor activities available on a year around basis, and easy access to large tracts of public lands, Eagle County attracts a substantial recreation and tourism population. There also exists a sizable real estate market driven, to a large extent, by second home owners. Eagle County has invested in a considerable number and variety of amenities and events to attract visitors of all types, in addition to those seeking to engage in the traditional winter sports, with a strong focus on accommodating families with children of all ages. Amenities include golf courses, bike paths, public pools, ice rinks, other indoor and outdoor recreation facilities. On top of these amenities, there exists a high level of public services and a regional airport that facilitates increasingly diverse air travel options and also supports a strong corporate and private aviation industry. The easy availability of these recreational lifestyle amenities for a large percentage of the year-round population results in lower obesity, better nutrition, and better wellness overall, but also results in a number of important challenges. A self-sufficiency analysis conducted by the county in 2009, based on standards created by the Colorado Department Labor, shows that the minimum cost of living is higher than the six-county Denver Metro area for three of the four family categories and substantially higher than Mesa County in all four of the categories. Mesa County includes the city of Grand Junction. Detailed results are presented in Table 1. More traditional cost of living calculations, as published by Sperling’s Best Places (www.bestplaces.net), yields a local estimate that is 44% higher than the national average. Table 1. Eagle County 2009 Self-Sufficiency Details. Monthly Costs Adult Adult, Preschooler & School Age Child Two Adults Two Adults, Preschooler & School Age Child Housing $982 $1,292 $982 $1,292 Child Care $0 $1,204 $0 $1,204 Food $227 $515 $447 $708 Transportation $60 $60 $120 $120 Health Care $129 $360 $386 $420 Miscellaneous $140 $343 $194 $374 Taxes $365 $902 $381 $379 Child Care Tax Credit $0 - $267 $0 - $267 Self-Sufficiency Wage Hourly $10.81 $25.05 $7.13/adult $13.44/adult Monthly $1,903 $4,408 $2,510 $4,730 Annual $22,836 $52,899 $30,114 $56,762 Annual Compared to Denver Metro + ~$1,500 + ~$3,000 (~$500) + $1,500 Annual Compared to Mesa County + ~$3,000 + ~$7,500 +$1,500 + ~7,000 1/21/2014 11 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Because Eagle County is deeply rooted in the resort and tourism industry, the county attracts wealthy part-time residents and second home owners that drive the high cost of housing. At the same time, large service, retail and construction industries mean that there is also a considerable middle class workforce, and therefore, a wide disparity in income levels among county residents. A comprehensive child and family needs assessment conducted by Silver Street Consulting, LLC in 2009, shows that this wealth disparity, coupled with the high cost of living, has resulted in a large percentage of residents and families who live in a state of increased vulnerability. Indicators of heightened vulnerability include a relatively high percentage of families without health insurance, and a significant proportion of the population that lacks appropriate prenatal care and engage in poor nutritional habits. Business Climate Since 2006, the Economic Council of Eagle County has asked employers about their business outlook and their forecasts for the future through an annual business survey known as the Workforce Report. Prior survey results can be found at www.vailvalleypartnership.com. In 2013, 82 businesses responded to this survey, giving insight into the business climate and the relative optimism or pessimism residing in the psyche of local business owners. Major conclusions from the 2013 Workforce Survey showed that survey respondents see improving trends both for their own businesses and for the county as a whole. The cautious optimism reflected in the 2012 survey results gave rise to a hopeful outlook for 2013. In 2013, four in 10 respondents think the county economy is better off than last year, up from 30% last year. Only 5% say the economy is worse. Respondents are much more optimistic about their own businesses as well, with 57% saying their own business is better than last year. 1/21/2014 12 vailvalleypartnership.com Eagle County Economic Development Strategic Plan When asked to make predictions for Eagle County’s economy for the coming year, 61% of business respondents predicted better times ahead. 39% of respondents thought the same in 2012. Only 3% think things will get worse, the lowest percentage since the survey began in 2006. This year’s survey found a clear sense from respondents that Eagle County needs to be proactive about growth: “tourist dollars in revenues spent here must increase, community expenses to stay here must decrease, and we need more businesses to locate here.” Strengthening existing businesses, as well as diversifying the economy, are on the minds of business owners throughout the valley. When asked what resources might be beneficial to business owners or managers during these challenging economic times, the responses included references to the following key areas: o Affordable housing o Business-focused marketing to recruit both businesses and employees o Business educational opportunities o Improved relationships with local governments and the need for forward thinking leadership o Improved access to financing o Ongoing public transportation improvements o A specific, dedicated economic development effort proactively courting new primary employers into Eagle County o Continued focus on tourism as a key economic driver These stated needs align well with the top priorities identified by the Economic Development Leadership Council and feedback garnered elsewhere from interviews with business owners and community members throughout the first half of 2013. Community attitudes favoring inter-community and countywide collaborations are on the rise. Efforts like the Mayor’s Manger’s group, the Regional Collaboration subcommittee, the Economic Development Leadership Council, Northwest Colorado Council of Governments, and the Eagle Air Alliance (among many others) attest to the increasing recognition that improved individual community outcomes are supported by cross organizational, agency, and jurisdictional collaborations. 1/21/2014 13 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Economic Development Leadership Council The Economic Development Leadership Council (EDLC) is a volunteer committee convened in 2013 by the Vail Valley Partnership. This group serves as a private industry voice on economic development priorities in Eagle County and has spent considerable hours of volunteer time providing input which formed the basis of many of the recommendations included in this plan. Throughout the first half of 2013, the EDLC reviewed the current state of the economy, past economic development efforts locally, and economic development activities currently underway at the regional and state levels, to provide context to their deliberations. The EDLC determined that two broad targets must be pursued to achieve long term economic vitality in Eagle County: effective retention and expansion of current businesses and recruitment of new businesses into the county. The EDLC formed two working groups to develop strategies to achieve these ends and recommend performance measures for each. Context was given to the concept of ‘local economic growth’ by defining it in the following terms: o Strong, sustainable growth of individual incomes and sales tax revenues o Healthy population growth o Increased business longevity o Diversification of industry for year-round availability o Job opportunities with promotional potential o Viable business opportunities for entrepreneurs The group defined ‘success’ in this realm as creating a place that cultivates entrepreneurs, offers “quality of career opportunities” in addition to “quality of life,” and creates opportunities that are attractive to all generations. The EDLC went to great lengths to solicit additional community and business owner input by conducting personal interviews of several companies located in Eagle County and throughout the region. The Vail Valley Partnership/Economic Council of Eagle County extends its sincere thanks for the time and effort each member of this group committed to this process. Economic Development Leadership Council Participants: Amy Reid, Vail Board of Realtors Charlie Wick, Edward Jones Ellen Moritz, First Bank Fletcher Harrison, Westin Riverfront Resort & Spa Jeff Morgan, Vail Vitality Center Jill Ryan, Eagle County Commissioner John Helmering, Vail Valley Real Estate Kim Blackford, Colorado Mountain College Laura Chung, Colorado Mountain College Levi Rozga, Wells Fargo Mark Ballenger, Centennial Capital Partners Matt Scherr, Minturn-Red Cliff Business Association Mick Daly, Eagle Chamber of Commerce Paul Witt, Witt Communications Tom Edwards, Town of Gypsum Tori Franks, Eagle County Housing 1/21/2014 14 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Eagle County Economic Development Goals To promote the long-term economic health of Eagle County and solidify an economic base that is strong, diverse, and resilient we must: 1. Retain and expand current businesses and 2. Recruit new businesses Based on local economic competitiveness factors, approaches developed by the Economic Development Leadership Council, and interviews with a variety of business owners and stakeholders from around the region, the Vail Valley Partnership/Economic Council developed six core objectives to position Eagle County’s economy for long term success: Eagle County Core Economic Development Objectives 1. Build a Business-Friendly Eagle County 2. Create and Market an Eagle County Business Brand 3. Retain, Grow, and Recruit Businesses 4. Protect our Natural Environment 5. Expand Opportunity in our Leading Sectors a. Tourism and Recreation b. Health & Wellness c. Creative Industries 6. Provide Support for a Quality Workforce a. Affordable Housing b. Education c. Transportation d. Health Items of Note: 1. This plan is designed to supplement and support (not replace) municipal level economic development efforts, providing a tie to countywide, regional and state-level activities. 2. The core objectives outlined above and the actions to follow, are highly interdependent and do not occur in a vacuum. As such, they are not necessarily listed in any priority order. 3. The engagement of many private, public, and non-profit entities is required to bring this plan to fruition. While this will at times surface divergent interests, a sincere commitment to collaboration by all parties will be necessary to achieve some of the more ambitious core objectives. 1/21/2014 15 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Strategies and Actions Objective 1: Build a Business-Friendly Eagle County Strategy: Make Eagle County an attractive place to conduct business by creating solid lines of communication to and between local governments and a network of easily navigable support resources. Actions (4) 1. Foster stronger partnerships with local and state government o Develop forums for partnered conversations about business expansion and recruitment incentives, zoning, customer service, and local government responsiveness. o Provide regional and statewide representation to Eagle County and our business community. 2. Develop robust data and analysis tools to inform local decision making with regard to the economy. o Examples: monthly indicators, “business health” score/index, “economic stress” score etc. 3. Build a singular online home welcoming prospective businesses to Eagle County and providing easily navigable support resources for existing businesses. 4. Build Economic Ambassadors Program o Develop and maintain a local pool of civic-minded business owners to participate in an Economic Ambassadors Program. o Economic Ambassadors would participate in business retention, expansion, and recruitment programs and strengthen partnerships and two-way communication with local governments. Quick wins:  Mayor/Manager group  Regional Collaboration subcommittee  New Economic Stress Indicator  Economic Development Leadership Council  Vail Valley Merchant Alliance A specific implementation plan will be developed for each action listed above upon adoption of this plan. This will be developed throughout the first quarter of 2014. 1/21/2014 16 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 1: Build a Business-Friendly Eagle County 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Eagle County Economic Development Plan Action item Description 1 Foster stronger partnerships with local & state governments 2 Develop robust data and analysis tools 3 Build a singular online home with support resources 4 Build an economic ambassadors program 1/21/2014 17 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 2: Create and Market an Eagle County Business Brand Strategy: Raise Eagle County’s profile as a viable place to build successful business and career opportunities through specific coordinated marketing efforts. Actions (4) 1. Develop complementary business-centric branding language that builds on existing brand strengths. o Position Eagle County not only as premier vacation destination, but also as a great place to do business by building on – not competing with – current brands. o Language shifts on chamber and business websites, local government economic development pages, and in other publically consumable narratives. 2. Create a video or video series introducing Eagle County and its collection of local communities to desired target markets. 3. Include business-focused advertising and narrative in future editions of Visit Vail Valley: The Official Visitor’s Guide to the Vail Valley. 4. Incorporate refined messages into traditional local chamber marketing mediums. Quick wins:  Vail and Beaver Creek brand equity  brandColorado efforts A specific implementation plan will be developed for each action listed above upon adoption of this plan. This will be developed throughout the first quarter of 2014. 1/21/2014 18 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 2: Create and Market an Eagle County Business Brand 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Eagle County Economic Development Plan Action item Description 1 Develop business-centric brand language that builds on existing brand strengths 2 Create video series introducing Eagle County communities to desired target markets 3 Include business -focused advertising and narrative in future editions of Visit Vail Valley guide 4 Incorporate refined messages into traditional local chamber marketing mediums 1/21/2014 19 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 3: Retain, Grow and Recruit Businesses Strategy: Develop guiding principles, programming, and support resources to sustain and grow local businesses and recruit new businesses to Eagle County. Actions (4) 1. Develop and gain support for a regional code of ethics outlining guiding principles for economic development and business recruitment efforts in Eagle County. o Modeled after Metro Denver Economic Development Corporation to promote Eagle County as a single economic entity, and foster collaboration and trust between communities in promoting the long-term economic health of our region. o Eagle County should be sold first and our individual communities second. 2. Develop a Business Retention and Expansion (BRE) program. o Business health monitoring/flagging, directions to resources, reports to local governments. 3. Engage and connect the business community to support tools and educational resources, explore “business resource center” ideas, and/or effectively connect existing resources. 4. Develop a targeted business recruitment program o Appropriate identification and segmentation of target market o Align with Economic Ambassador’s program o Provide lead service to regional communities Quick wins:  Mayor/Manager group  Regional Collaboration subcommittee  New Economic Stress Indicator  Economic Development Leadership Council  Vail Leadership Institute’s business incubator program A specific implementation plan will be developed for each action listed above upon adoption of this plan. This will be developed throughout the first quarter of 2014. 1/21/2014 20 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 3: Retain, Grow & Recruit Businesses 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Eagle County Economic Development Plan Action item Description 1 Develop and gain support for a regional code of ethics 2 Develop a business retention & expansion program 3 Engage & connect the business community to support tools, etc. 4 Develop a targeted business recruitment program 1/21/2014 21 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 4: Protect our Natural Environment Strategy: Maintain the long-term health of our natural environment through cooperative community efforts and the establishment of environmental standards criteria for businesses seeking public economic development assistance. Actions (4) 1. Local governments should pass resolutions outlining environmental standards for public economic development assistance. o Recognize that existing economic health has been built and will be sustained by the ongoing health of our natural environment. o Create environmental impact eligibility criteria for businesses seeking public monies or incentives for relocation or expansion. o Criteria could be impacts to key air and water quality indicators and/or a ‘nature and spirit’ of the community assessment. 2. Maintain and extend local programs that protect and enhance the environmental amenities that attract visitors to this region including: o Open space, public access to trails, rivers, and other waterways, aquatic and wildlife habitat, clean air, clean water, forest health, and an overall healthful environment, and support ample recreational opportunities. 3. Develop and maintain strong local relationships with state, and federal natural resources agencies. o Ensure coordinated protection of natural resources and the continued availability of recreational opportunities. 4. Create and enhance local educational programs focused on the preservation of natural resources. Quick wins:  Walking Mountains Science Center / Eagle Valley Alliance for Sustainability  2015 Actively Green committee  Energy Smart  Eagle River Watershed Council  Town of Vail Gore Creek sustainability efforts  Eagle County Landfill Materials Recovery Facility (MRF)  Holy Cross Energy programs  Eagle Valley Land Trust A specific implementation plan will be developed for each action listed above upon adoption of this plan. This will be developed throughout the first quarter of 2014. 1/21/2014 22 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 4: Protect our Natural Environment 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Eagle County Economic Development Plan Action item Description 1 Passage of local government resolutions outlining environmental standards for public economic development assistance 2 Maintain & extend local programs that protect & enhance the local environmental amenities 3 Develop and maintain strong local relationships with state, and federal natural resources agencies 4 Create & enhance local educational programs focused on the preservation of natural resources 1/21/2014 23 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 5: Expand Opportunity in our Leading Sectors (Tourism and Recreation, Health & Wellness and Creative Industries) Strategy: Focus the majority of economic development efforts on our leading and emerging sectors. Play to our strengths as informed by relevant anticipated market conditions and emerging demographic trends. Actions: (3-5 in each target sector) 1. Tourism and Recreation: o Support regional transportation efforts to improve Eagle County Regional Airport and I-70 corridor infrastructure and access. o Continue to support the work of Vail Resorts, Inc., Vail Valley Foundation, Bravo ! Vail, Vail International Dance Festival, and the many other local drivers of robust overnight destination tourism. o Maintain and improve upon the Vail Valley Partnership’s traditional role within regional destination marketing and group sales. o Engage and coordinate support for any regional Sector Partnership effort that may develop on this topic. o Keep this market segment top of mind in marketing, relocation and business recruitment strategies. 2. Health and Wellness: o Build upon existing strengths in the health and medical fields represented by local businesses such as Arthrex, The Steadman Clinic, Steadman Philippon Research Institute, Vail Summit Orthopaedics, Vail Valley Medical Center, Axis Sports Medicine and others. o Increase cross-industry collaborative opportunities via the Vail Valley Health & Wellness Initiative in support of community destination marketing, workforce, and healthcare needs. o Engage and coordinate support for the regional Sector Partnership effort that is developing on this topic. o Cater to Retirees – Keep this growing market segment top of mind in marketing, relocation and business recruitment strategies. 3. Creative Industries*: (see definition below) o Continue to promote and extend the Vail Valley’s cultural and performing arts amenities. o Engage and coordinate support for any regional Sector Partnership effort that may develop on this topic. o Keep this market segment top of mind in business retention, relocation and recruitment strategies. (Seek additional location-agnostic design, media, literary and publishing and craft-related businesses.) * Creative Industries includes six creative sectors: design, film and media, heritage, literary and publishing, performing arts, and visual arts and crafts. These sectors encompass 118 North American Industry Classification (NAICS) codes. Examples include: clothing, luggage, and toy and game manufacturing, printing and publishing, software publishing, architectural services, graphic design, interior design, public relations and media agencies, museums among many others. 1/21/2014 24 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Quick wins, Tourism and Recreation  Epic Discovery  Marketing group efforts: Vail Local Marketing District, Town of Eagle Marketing and Events Committee, Beaver Creek Resort, Vail Resorts, Inc.  Eagle County Airport/EGE Air Alliance  2015 FIS Alpine World Ski Championships Quick wins, Health and Wellness  International excellence in orthopedic surgery, research and care  Shaw Cancer Center  Castle Peak Senior Care Community  Vail Valley Medical Center Wellness Survey and Master Planning  NWCCOG Health and Wellness Sector Partnership  Eagle County Healthy Communities Coalition  Vail Valley Health & Wellness Initiative Quick wins, Creative Industries  Signature Cultural Events: Bravo! Vail, Vail International Dance Festival, Vail Jazz Festival, Vail Film Festival  Vail Leadership Institute co-working space A specific implementation plan will be developed for each action listed above upon adoption of this plan. This will be developed throughout the first quarter of 2014. 1/21/2014 25 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 5: Expand Opportunities in our Leading Sectors Tourism & Outdoor Recreation 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Eagle County Economic Development Plan Action item Description 1 Support regional transportation efforts 2 Support local drivers of overnight visitation 3 Improve and increase group sales efforts 4 Coordinate future sector partnerships 5 Utilize for business recruitment Objective 5: Expand Opportunities in our Leading Sectors Health and Wellness 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Eagle County Economic Development Plan Action item Description 1 Build on existing strengths 2 Increase cross-industry collaboration 3 Engage & support regional sector partnerships 4 Cater to retirees 1/21/2014 26 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 5: Expand Opportunities in our Leading Sectors Creative Industries 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Eagle County Economic Development Plan Action item Description 1 Continue to promote & extend cultural & performing arts amenities 2 Engage & support future regional sector partnerships 3 Utilize for business recruitment 1/21/2014 27 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 6: Provide Support for a Quality Workforce (Affordable Housing/Education/Transportation/Health) Strategy: Enhance and maintain the amenities needed to sustain and support a high-quality workforce. Actions: (4) 1. Improve integration of existing support resources for employers and the workforce o See Appendix of Institutional Resources for complete list. o Ensure Eagle County is well-represented through active and ongoing participation and engagement with these organizations and their governing boards. 2. Develop robust data and analysis tools to inform local decision making with regard to workforce needs o Target areas should include: affordable housing, education, transportation services, and health care. 3. Identify existing workforce strengths and incorporate into business branding strategy. 4. Ensure regular and recurring local government evaluation of infrastructure status and investment supporting short and long-term economic development goals. o Particular attention should be paid to the developing needs of our key sectors including Tourism and Recreation, Health & Wellness, and Creative Industries. Quick wins:  Colorado Workforce Center  County Housing Department  Colorado Mountain College four year degrees  Rural Colorado Workforce Consortium strategic plan  Eco-transit spine system A specific implementation plan will be developed for each action listed above upon adoption of this plan. This will be developed throughout the first quarter of 2014. 1/21/2014 28 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Objective 6: Provide Support for a Quality Workforce 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Eagle County Economic Development Plan Action item Description 1 Improve integration of existing support resources for employers and workforce 2 Develop robust data and analysis tools 3 Identify existing workforce strengths and incorporate into business branding strategy 4 Ensure regular and recurring evaluation of infrastructure status and investment supporting economic development goals 1/21/2014 29 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Performance Measures This economic development plan incorporates a comprehensive set of objectives and associated performance measures utilizing a “SMART” framework. That is, five key indicators of local economic health and vibrancy have been identified where growth targets are clearly defined using the following criteria:  Specific (S)  Measurable (M)  Achievable (A)  Relevant (R)  Time-sensitive (T) For each of the five indicators, baselines were established from available data as close to 2011 as possible and then future growth targets were set based on ambitious, but realistic, expectations that the activities described in this economic plan will lead to desired gains in each area. These indicators were chosen based on the availability of valid and reliable data in each area and because they reflect a robust cross-section of established correlates of sustainable economic growth. Each indicator and associated growth target is shown in Table 2, followed by a brief rationale. Note that several of the growth targets included in these performance measures are grounded in reclaiming Eagle County’s historical economic peak which occurred in 2008. As is now apparent, that economic structure was eventually found to be unstable, though much of this was influenced by external factors beyond the control of local actors. In rebuilding our economy for the future, special attention should be paid to laying a more diversified economic foundation that is more resilient to external stress and upheaval. Our future economy should create economic opportunities for residents that are better aligned with the realities of self-sufficiency in a rural-resort region with a relatively high cost of living. As a reminder, successful ‘local economic growth’ in the context of this plan means: o Strong, sustainable growth of individual incomes and sales tax revenues o Healthy population growth o Increased business longevity o Diversification of industry for year-round availability o Job opportunities with promotional potential o Viable business opportunities for entrepreneurs 1/21/2014 30 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Table 2. Objectives and Growth Targets for Five Indicators of Economic Health in Eagle County. Objective Metric Current Status Desired Status Growth Target Current Gap Source Increase Incomes in Eagle County Average Weekly Wage Eagle county AWW is $754 for 2012. This is W2 wages only. 2007: 768 2008: 786|+2.3% 2009: 757|-3.7% 2010: 749|-1.1% 2011: 751|+0.3% 2012: 754|+0.4% Close the gap between statewide AWW which is $972 for 2012. Increase annual average AWW growth rate to the state-wide average over the next three years and then exceed it by .5% in each year thereafter. Eagle County is 22% below the statewide AWW. Bureau of Labor Statistics, Quarterly Census of Wages & Employment Average Yearly Earnings per Job $44,811 for 2011. Includes proprietors’ income. Close the gap between statewide AYE which is $54,178 for 2011. Increase average earnings per job to $48,000 by 2015 and $51,000 by 2017. Eagle County 17% below statewide average earnings per job. Bureau of Economic Analysis Table CA30 Increase the Number of Jobs in Eagle County Net New Jobs 2007: 45,079 2008: 46,102|+2.3% 2009: 43,042|-6.6% 2010: 41,552|-3.5% 2011: 41,896|+0.8% Return to 2008 level of jobs or higher. Increase net new jobs by 1.5% per year over the next 5 years. Eagle county had 7% fewer jobs in 2011 than it did in 2008. Bureau of Economic Analysis Table CA30 Increase Sales Tax Revenue in Eagle County Sales Tax Collections 2007: 12,947,176 2008: 13,258,995|+2.5% 2009: 10,611,366|-20.0% 2010: 09,916,522|-6.5% 2011: 10,514,928|+6.0% 2012: 11,022,291|+4.5% Return to 2008 level of sales tax collections or higher. Increase sales tax collections by 3.8% per year over the next 5 years. Eagle County collected 17% less sales tax in 2012 than it did in 2008. Eagle County Sales Tax Report Create Vibrant Communities Through Sustainable Growth County Population Eagle county population in the 2010 census was 52,197. For 2012 the forecast was 53,681. Maintain steady/slow population growth in Eagle County. Increase population in the age 25-59 category by 2% per year over the next 5 years. Not Applicable US Census, State Demog. Office/Dep’t. of Local Affairs Improve Overall Business Health Unemploy- ment Rate 2007: 2.9|-12.9% 2008: 3.6|+26.6% 2009: 7.8|+111.0% 2010: 9.6|+18.8% 2011: 8.9|-8.2% 2012: 8.1|-7.6% Bring un- employment rate down to 5% or less. Reduce un- employment by 10% per year over the next 5 years. The number unemployed in 2012 is 112% higher than in 2008. Bureau of Labor Statistics Economic Stress Score (ESI) 2007: +0.005 2008: -0.007 2009: -0.042 2010: -0.019 2011: +0.007 2012: +0.009 Increase labor force and employment to the same levels as 2008. Increase the labor force by 2% per year while holding ESI at +.005 or better. 2012 labor force is 6% less than in 2008 and number employed is down by 11%. Bureau of Labor Statistics Increase Commercial Property Valuations Assessed Values 2007: 752,045,620 2008: 733,381,800|-2.5% 2009: 797,897,540|+8.8% 2010: 783,276,800|-1.8% 2011: 621,556,190|-20.6% 2012: 610,910,930|-1.7% Increase Assessed Values to the same level as 2009. Increase the total assessed value of commercial properties by 10% in the next 5 years. 2012 total assessed value is 23% lower than in 2009. Eagle County Abstract of Assessed Values 1/21/2014 31 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Increased Incomes Eagle County was 22% below the statewide Average Weekly Wage in 2012 and 17% below the statewide Average Earnings per Job in 2011. Given the relatively high cost of living in the county, this imbalance on these two interrelated metrics is unsustainable and erodes the local community fabric. The five year trend has shown that the year to year gap between Eagle County and the state on these measures has increased steadily between 2008 and 2012. Although the Eagle County AWW has had positive growth since 2011, local growth was still less than statewide. Therefore, reversing the trend seen in the growth gap so that local figures begin to converge with state figures is the first step in trying to close the overall disparity seen in AWW. A three-year goal to do so is ambitious, but critical for overall health. Exceeding the state year to year growth rate by .5% in each year thereafter is realistic and necessary to bring local AWW and Average Earnings per Job up to state levels over time. Increase Number of Jobs Eagle County saw significant losses in number of jobs between 2008 and 2010, but this trend reversed between 2010 and 2011. In 2011 there were 7% fewer jobs than in 2008. Therefore, increasing the number of new jobs by 1.5% each year over the next five years will result in the desired outcome of returning to the 2008 number of jobs in Eagle County. It is important to note that quality of new jobs is an important related factor that is part of the Business Heath indicator. Increase Sales Tax revenue Eagle County saw significant losses in sales tax revenue between 2008 and 2010, with a single year loss of 20% between 2008 and 2009. Although this trend reversed between 2010 and 2011, in 2012 there was still 17% less sales tax collected than in 2008. Therefore, increasing this revenue by 3.8% in each year over the next five years will result in the desired outcome of returning to the sales tax revenue collected in 2008. Increase Population Setting an annual population growth target of 2% per year for the 25-59 year old age category would represent slow, but steady growth. Maintaining this level of growth in this segment of the population, along with realizing the desired growth on the other indicators, would ensure that this year to year increase would largely be driven by key desirable subgroups of the populations (i.e., individuals with self-sustaining jobs). Business Health In 2012, Eagle County had an unemployment rate that was over double the 2008 rate. In 2003- 2007, annual unemployment rate varied from a low of 2.9% to a high of 4.8%. Holding the labor force size constant, reducing the unemployment rate by 10% per year will result in an annual unemployment rate of less than 5% within 5 years. An additional metric for understanding Business Health is an Economic Stress Indicator (ESI), which looks at year-to-year changes in both the number of individuals in the labor force and the number of individuals employed. The year-to-year growth ratio in the labor force is subtracted from the year-to-year growth ratio in employment. Positive values indicate a more favorable year-to-year growth balance on the two combined factors. Increasing the labor force b y 2% per year while holding ESI at +.005 or greater would reflect strengthening business health and would result, within five years, in an overall number of jobs similar to what was seen in 2008. 1/21/2014 32 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Region 12 Economic Development Plan: NWCCOG Eagle County is included in rural resort Region 12, as designated by the state of Colorado. Additional counties included in Region 12 include Pitkin, Summit, Grand and Jackson. The Northwest Colorado Council of Governments (NWCCOG) is a voluntary association of county and municipal governments that strives to work together to focus on regional efforts, and oversees this region’s economic development plan. Eight goals have been identified by NWCCOG’s economic development district: Goal 1: Support & Strengthen Existing Businesses Goal 2: Attract New Businesses/Industries to Create Vibrant, Resilient Economies Goal 3: Focus on Projects that Bolster Tourism Goal 4: Protect the Natural Environment Goal 5: Focus on existing and renewable energy resources to include development of additional energy sources; assist with identification of funding Goal 6: Create Sustainable Main Street/Downtown Projects Goal 7: Workforce Development: create and/or expand workforce development/training/educational opportunities to focus on training and education programs across all economic sectors Goal 8: NWCCOG Economic Development District to be point of contact for economic development activities: technical assistance, information, data, capacity building, etc. While not every regional goal is relevant to Eagle County, primary to Eagle County’s successful economic growth is to build partnerships with NWCCOG and the NWCCOG Economic Development District to leverage various programs and access to capital for local businesses. Three programs initiated by NWCCOG at a regional level and of particular benefit to Eagle County are: 1. Sector Partnerships: industry led collaborations designed to address workforce, supply chain or other industry challenges 2. Regional Broadband Project: an eight county strategic plan for increased broadband capacity 3. Northwest Loan Fund: loans money for start-up and expanding businesses that may not qualify for traditional funding Active participation with NWCCOG at a regional level ensures that Eagle County’s interests are represented in various regional efforts. As the largest (population and workforce) county in the region, it is important that our voice is heard. 1/21/2014 33 vailvalleypartnership.com Eagle County Economic Development Strategic Plan State Economic Development Plan: Colorado Blueprint The Colorado Blueprint is the state’s economic development plan. Six goals were identified through a state-wide public engagement process. Goal 1: Build a Business-Friendly Environment Goal 2: Retain, Grow and Recruit Companies Goal 3: Increase Access to Capital Goal 4: Create and Market a Stronger Colorado Brand Goal 5: Educate and Train the Workforce of the Future Goal 6: Cultivate Innovation and Technology A key component of the goals above was the identification of 14 key industry networks; of particular interest to Eagle County are our top three opportunity job sectors: 1. Tourism and Outdoor Recreation 2. Health & Wellness 3. Creative Industries As noted by the Colorado Blueprint, “Effective partnership requires close collaboration and communication. The distances separating state, regional and local leadership inhibit effective partnership and must be countered by better communication, increased alignment and a true spirit of collaboration and teamwork. State, regional and local collaboration must be a part of the DNA of life and business in Colorado.” The state also offers tools that benefit local economic development efforts, including the Colorado INSITE tool (which requires local population of building and site information for prospective businesses). The INSITE tool is a comprehensive database with state-wide commercial space, building size, community information, company details by NAICS code and other detailed information. Numerous state agencies relevant to the Eagle County economic development plan operate under the Office of Economic Development and International Trade. These include (but are not limited to): 1. Small Business Development Center 2. Colorado Workforce Center 3. Colorado Tourism Office 4. Colorado Innovation Network Active participation with the state of Colorado and relevant agencies within the Office of Economic Development and International Trade ensures that Eagle County’s interests are front of mind and our business community has access to state resources. 1/21/2014 34 vailvalleypartnership.com Eagle County Economic Development Strategic Plan Appendix of Institutional Resources Existing local institutional capacity and business support resources Community/Regional Chamber and Business Associations  Avon Business Association  Basalt Chamber of Commerce  Beaver Creek Merchant Association  Eagle Chamber of Commerce  EagleVail Business Association  Gypsum Chamber of Commerce  Lionshead Merchant Association  Minturn-Red Cliff Business Association  Vail Chamber & Business Association  Vail Valley Partnership Local Governments  Eagle County Government  Town of Avon  Town of Basalt  Town of Eagle  Town of Gypsum  Town of Minturn  Town of Red Cliff  Town of Vail Selected Metro and Special Districts  Beaver Creek Resort Company  EagleVail Metropolitan District  Edwards Metropolitan District  Vail Recreation District  Western Eagle County Metropolitan Recreation District Industry Associations  Eagle Valley Homebuilders Association  EGE Air Alliance  Vail Board of Realtors Special Stakeholders:  Utilities: Holy Cross Energy, Eagle River Water and Sanitation District, Upper Eagle Regional Water Authority (UERWA), Eagle and Gypsum municipal water systems, SourceGas, Xcel Energy  CenturyLink  Comcast  Eco-Trails  Eco-Transit  Vail Resorts  Vail Valley Foundation  Vail Valley Medical Center Regional Partners  I-70 Coalition  Northwest Colorado Council of Governments (NWCCOG) Education  Colorado Mountain College  Colorado State University Extension  Eagle County School District  Vail Leadership Institute State Partners  Colorado Department of Transportation (CDOT)  Colorado Small Business Development Center (SBDC)  Colorado Tourism Office (CTO)  Colorado Workforce Center  Department of Local Affairs (DOLA)  Governor’s Office of Economic Development and International Trade (OEDIT) 1/21/2014 35 Additional Resources The Region 12 Colorado Blueprint Business Plan & Colorado Blueprint state economic development plans are additional resources/reference pieces to support and provide additional context to the Eagle County strategic plan. 1. Northwest Colorado Council of Governments Comprehensive Economic Development Plan: http://www.nwccog.org/index.php/programs/economic-development/ceds 2. Region 12 Colorado Blueprint Summary: http://www.advancecolorado.com/regional- partners/region-12 3. Colorado’s key industry sectors: http://www.advancecolorado.com/key-industries 4. Colorado Blueprint: http://www.advancecolorado.com/sites/default/files/908_424_Colorado%20Blueprint_11 _7_no_jump_8.5_0.pdf For more information: Chris Romer, President/CEO, Vail Valley Partnership, (970) 477-4016 cromer@visitvailvalley.com Jeremy Rietmann, Program Manager, Vail Valley Partnership, (970) 477-4012 jrietmann@visitvailvalley.com 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 ITEM/TOPIC: Review of the Vail Village Welcome Center Remodel Project PRESENTER(S): Greg Hall and Henry Pratt ACTION REQUESTED OF COUNCIL: The Town Council is asked to review the presentation and provide direction regarding the schematic design option for the Vail Village Welcome Center as the owner of the project prior to seeking out additional public input and proceeding through the entitlement process. Request Town Council provide input into a preferred General Contractor selection process. BACKGROUND: On May 7, 2013 of last year, staff and the Town of Vail’s guest enhancement consultant Stantec/Comm Arts presented various program options for the Vail Village Welcome Center. The Town Council direction was to develop a project that remodeled the existing building and provide restrooms without precluding further enhancements in the future. This direction included enhancements to the inside to open up the space: as well as provide architectural features to the north side of the building to further the guest experience and better accentuate the building presence with the street. The Town of Vail has hired Henry Pratt of GPSL Architects to provide the design for the remodeled space. The 2013 Town of Vail budget included $1.295 million in the Capital Projects Fund for a remodel of this facility in anticipation of the World Alpine Ski Championships in 2015. STAFF RECOMMENDATION: Provide input regarding the design and project approach. The staff recommends a competitive process to select a CM/GC for the project. ATTACHMENTS: Vail Village Welcome Center Remodel Memorandum VVWC schematic design AIA Contracotr Selection Article 1/21/2014 To: Vail Town Council From: Stan Zemler, Town Manager Greg Hall, Public Works Director Suzanne Silverthorn, Community Information Officer Date: January 21, 2014 Subject: Review of Remodel Option for Vail Village Welcome Center as Component of Town of Vail Guest Service Enhancement Initiative I. PURPOSE The purpose of this discussion is to review a schematic design option for remodel of the Vail Village Welcome Center and allow Town Council to provide direction regarding the design prior to additional public input and applying to the Planning and Environmental Commission for a Conditional Use permit and input on a preferred General Contractor selection/bid process. II. BACKGROUND On May 7, 2013 of last year, staff and the Town of Vail’s guest enhancement consultant Stantec/Comm Arts presented various program options for the Vail Village Welcome Center. The Town Council direction was to develop a project that remodeled the existing building and provide restrooms without precluding further enhancements in the future. This direction included enhancements to the inside to open up the space, as well as provide architectural features to the north side of the building to further the guest experience and better accentuate the building presence with the street. The Town of Vail has hired Henry Pratt of GPSL Architects to provide the design for the remodeled space. The 2013 Town of Vail budget included $1.295 million in the Capital Projects Fund for a remodel of this facility in anticipation of the World Alpine Ski Championships in 2015. III. WELCOME CENTER REMODEL DESIGN The staff and architect reviewed various options with regard to providing public restrooms. The options consisted of restrooms within the exiting space and restrooms being added with a small addition on the east side of the current building. In addition, the options looked at traditional men’s and women’s separated restrooms where the entry doors are not locked, verses unisex restrooms where the door is locked when 1/21/2014 Town of Vail Page 2 occupied. The design being presented provides a small extension of the building and the more traditional restroom configuration. The design updates the existing building with new window shapes and adds a new canopy and covered seating area at the north entrance facing the Frontage Road, new exterior finishes and signage on the exterior. The interior is reconfigured with a more efficient/visitor friendly layout. Restrooms are added with a simple addition to the east, new interior finishes (floor, walls, furniture, lighting, signage and graphics), as well as a media display and virtual concierge feature (similar to the Lionshead Welcome Center). Vehicular Pull-off Option A vehicular pull-off for oversize and short-term parking on the Frontage Road in front of the Welcome Center can also be considered as an additional option to the project described above. This project design received Colorado Department of Transportation approval; however, it was not pursed in the past. This project was previously budgeted at $150,000. IV. SKI MUSEUM UPDATE The Welcome Center design was reviewed with the Ski Museum staff as well as the Ski Museum architect. The Ski Museum, after reviewing the work presented in May and further discussing the implications of a vertical connection with the Welcome Center with their board, determined such a connection was too intrusive within the space of the museum. The museum is in the midst of working on a plan and fund raising efforts for an addition. In the near future they are expected to approach the Town Council to review the concept. If the Town Council agrees with the museum’s desired direction, the project would be constructed sometime after the 2015 championships. These two projects do not conflict with each other. V. SCHEDULE In order to allow appropriate time for pricing and review of the construction documents prior to awarding the contract, the schedule for the project requires that construction begin mid-August in order to complete the work prior to the 2014/2015 ski season. During the construction period an alternative method of delivering Welcome Center services will be provided. VI. GENERAL CONTRACTOR SELECTION PROCESS There are two approaches to procuring a general contractor for the remodel project. The first is the traditional design, bid, build. This is where the town and its architectural design team prepare a complete set of construction documents and advertise the project for bid. The general contracting community responds to the request for bids and prepares bids on a competitive basis. The contract is awarded to the low responsible bidder. 1/21/2014 Town of Vail Page 3 The second approach is use of a Construction Manager/General Contractor (CM/GC) procurement process. The selection of the CM/GC is carried out through a competitive process regarding contractor fee, general conditions, schedule and project approach. Once selected; the CM/GC would work with the town and architect to provide a project which meets both the town’s budget and schedule. The final plans would then be bid out to subcontractors and suppliers to obtain the best price for the Town of Vail. The town staff and project architect would recommend the CM/GC approach for this project. VII. BUDGET AND COST ESTIMATES The $1.295 million project budget is broken down as follows: Design and Construction Administration $ 130,000 Tap Fees if required $ 75,000 Construction Costs $ 850,000-975,000 Temporary Info Service $ 15,000 FFE $ 65,000 Project Contingency $ 125,000 Total Project Cost $ 1,275,000-1,400,000 At this time the town has solicited pricing information from three General Contractors and various sub contractors. In addition the town facility manager has estimated the cost of the work. There are variances within these estimates because of the level of effort and the stage at which the plans are. Through use of a CM/GC process the staff and architect are confident the project will be designed to meet the town’s budget. The second largest variable is the determination of whether the tap fees are required. This will become known as the design progresses forward. VIII. NEXT STEPS • Conduct public outreach • PEC conditional use application • PEC work session • DRB work session • PEC final • DRB final • Develop an alternative Welcome Center operation plan during construction • General Contractor Selection Process based on approach selected • Construction Documents/Building Permit • General Contract Bidding Subcontractor Work • Award Final Construction Project • Begin Construction • Complete Construction IX. ACTION REQUESTED OF TOWN COUNCIL 1/21/2014 Town of Vail Page 4 The Town Council is asked to review the presentation and provide direction regarding the schematic design option for the Vail Village Welcome Center as the owner of the project prior to seeking out additional public input and proceeding through the entitlement process. Request Town Council provide input regarding a preferred General Contractor selection process. X. ATTACHMENTS A. Vail Village Welcome Center Schematic Design B. AIA Best Practices document titled “Qualification–Based vs. Low Bid Contractor Selection” 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 ITEM/TOPIC: Holy Cross Energy Grant Lighting Energy Reduction Project PRESENTER(S): Greg Hall ACTION REQUESTED OF COUNCIL: The Vail Town Council review the grant and proposed project for energy use reductions and provide direction to staff to proceed to work with Illuminex to develop a project to return to the council to review and approve once the more detailed project scoping, analysis and pricing are known and to supplement the budget up to $87,000 additional dollars from the capital projects fund balance. BACKGROUND: The Town of Vail’s adopted stated sustainability goal is to reduce energy consumption and greenhouse gas emissions by 20% by 2020. The town applied for and received approval for a grant up to $ 170,449 through the Holy Cross Energy’s Think BIG Grant process this last December. The town contacted Illuminex, a LED bulb supplier and retrofit specialty company to assist with the Town’s application. With the assistance of Illuminex, the town identified energy savings potential of up to 1,018,456 kilowatt hours per year as a Phase II lighting project upgrade. This is equal to an additional 6% of the town’s overall energy use goal reduction. The preliminary estimated total cost of the project is $ 477,146. The estimated energy savings if all the lights identified were converted would be $ 76,335,/year. STAFF RECOMMENDATION: Staff recommends the Vail Town Council direct staff to proceed to work with Illuminex to develop a project to return to the council to review and approve once the more detailed project scoping, analysis and pricing are known and to supplement the budget up to $87,000 additional dollars from the capital projects fund balance. ATTACHMENTS: Holy Cross Memorandum 1/21/2014 To: Vail Town Council From: Community Development and Public Works Departments Date: January 21, 2014 Subject: Holy Cross Energy Grant-Lighting Energy Reduction Project I. PURPOSE The purpose of this memorandum is to present an opportunity for Phase II of the Town of Vail’s Facility W ide Energy Conservation Project through use of LED lighting technology. The town applied for and received approval for a grant up to $170,449 through the Holy Cross Energy’s Think BIG Grant process last December. Staff will present the details of the grant and process going forward. II. BACKGROUND In a continuing effort to meet the Town of Vail’s adopted sustainability goal of reducing the town’s 2006 baseline energy consumption and greenhouse gas emissions by 20% by 2020, the Town of Vail investigated an upgrade of remaining lights which were not part of the town’s Phase 1 project. These were mainly outside lighting. The original Facility Wide Energy Conservation Project Phase I (2010-2013) included an Energy Performance Contract with Johnson Controls, Inc.(JCI), an Energy Services Company (ESCO). The final project provided a 15 year payback and a 12% reduction in overall energy and greenhouse gas emissions, and was approved by the Vail Town Council on June 7, 2011. The Phase I project resulted in a reduction of 1,792,320 kWh and an annual savings of $159,283. JCI is in the final stages of preparing the 2013 Post- Installation Energy Savings Report. The results will be shared with the Town Council once it is complete. Coincidently, last fall Holy Cross Energy announced the Think BIG Grant, an opportunity for the largest users of electricity in the Holy Cross service area to invest in energy reduction projects. Grant requirements included a minimum savings of 500,000 kilowatt hours per year with project completion by December 31, 2014. The town contacted Illuminex, a LED bulb supplier and retrofit specialty company, to assist with the town’s application. They were most recently contracted by the Town of Breckenridge in converting their street lights to LED. . III. PROJECT The conversion of the town street lights alone did not meet the savings requirements of the Think BIG grant. In order to meet the requirements Illuminex recommended 1/21/2014 Town of Vail Page 2 upgrading current fluorescent facility lighting in addition to street lighting to LED technology. In 2011 LED retrofit technology did not exist, but rather it was necessary to replace old fluorescent lamps with a new fluorescent lamp and ballast, or it was necessary to replace old fixtures with new LED fixtures as was done in both parking structures. However, since then LED retrofit technology has evolved in two areas. The dependability and wide array of products available in the market have increased, and the cost of LED retrofit bulbs has halved in the last two years. Energy Savings With the assistance of Illuminex, the town identified energy savings potential of up to 1,018,456 kilowatt hours per year as a proposed Phase II lighting project upgrade. This is equal to an additional 6% of the town’s overall energy use goal reduction. The proposed savings would be in addition to the ongoing savings identified in 2011 of 12%. Note that the baseline used for the Think BIG grant was based on fall 2013, which includes the savings realized with the town’s 2011 ESCO project. The overall combined reduction in greenhouse gas emissions is over 2,160 tons. The town’s 2006 total energy greenhouse gas emissions baseline was11,863 tons. If the lighting project were implemented in full, the town will need to still find an additional overall 2% in energy reduction over the next 5 years to meet its goal of 20% energy reduction by 2020. Illuminex identified over 7,400 facility bulbs which could be converted to LED bulbs. Many of the bulbs identified are at the end of their estimated life since being installed in 2011 and are in need of replacement in 2014. This project would convert almost all Town of Vail lighting to LED technology. In addition the project would be completed prior to the 2015 World Alpine Ski Championships and showcase the town as a community committed to green technology. The preliminary estimated total cost of the project is $477,146. The estimated energy savings if all the lights identified were converted would be $76,335/year. Process The next steps would be for staff to analyze in greater detail all the issues of retrofitting the town’s lights. This would include cost, aesthetics, use assumptions and more detailed payback analysis. Staff recommends continuing the relationship with Illuminix to perform the work with the understanding the analysis is proprietary to Illuminex. The installation of the lighting would be bid out. Once a more detailed analysis is performed, town staff would present the project to the Town Council for approval prior to commencing any retrofit. Once Council provides approval and funding, the town has the ability to competitively bid out the project for installation. IV. PROJECT FUNDING The preliminary cost of the project is estimated as follows: 1/21/2014 Town of Vail Page 3 Costs Material for 7,400 bulb replacements $ 353,058 Labor to install and remove the ballasts from the current fixtures $ 124,088 Total estimated cost $ 477,146 Funding Source Funds remaining from Phase I 2011 Energy Conservation project $ 220,000 Holy Cross Think BIG Grant funds $ 170,449 Additional capital funds required to complete the entire retrofit $ 86,697 Total Funds required $ 477,124 Total project simple payback $477,124/$76,335 = 6.25 years Total project payback with grant $306,697/$76,335 = 4.02 years V. STAFF RECOMMENDATION Staff recommends the Vail Town Council direct staff to proceed to work with Illuminex to develop a project to return to the council to review and approve once the more detailed project scoping, analysis and pricing are known and to supplement the budget up to $87,000 additional dollars from the capital projects fund balance. VI. NEXT STEPS If approved, the second phase of the town’s Energy Conservation timeline is as follows: Project detailed analysis January-March 2014 Town Council review of detailed Phase II project April 2014 Construction/installation award May 2014 Installation period June-September 2014 Measurement/ Verification and reimbursement October-November 2014 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 ITEM/TOPIC: Matters from the Mayor, Council and Committee Reports 1) Election procedures discussion 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 ITEM/TOPIC: Information Update: 1) Chamonix Master Plan Update; 2) Name recommendation for the new Lionshead Park; 3) November 2013 Vail Business Review; 4) January 2014 VEAC Meeting Minutes; 5) January 2014 CSE Meeting Minutes; 6) Alternative Fuels Analysis Memorandum; ATTACHMENTS: Chamonix Master Plan Update Name recommendations for the new Lionshead Park November 2013 Vail Business Review January 2013 VEAC Meeting Minutes Alternative Fuels Analysis Memorandum January 2013 CSE Meeting Minutes 1/21/2014 1 To: Vail Town Council From: George Ruther, Director of Community Development Date: December 17, 2013 Subject: Chamonix Master Plan Information Update I. Purpose The purpose of this memorandum is to provide the Vail Town Council with background information on the Chamonix Master Plan. Over the past several months Town Council members have asked questions about the Chamonix Master Plan. In order to effectively convey the information, this memorandum will focus primarily on the Chamonix Master Plan, however a number of other employee housing planning and policy related documents have been included for reference. If there are any questions staff will schedule a work session to address them. II. Chamonix Master Plan 1. Where is the Chamonix Parcel located? • The Chamonix Parcel is located at 2310 Chamonix Road. Adjacent uses include the Shell Station, Vail Fire Station No. 3 and a mix of low to medium density residential developments. 2. When did the Town of Vail purchase the Chamonix Parcel? • The Town of Vail purchased the 3.6-acre parcel in 2002 for “the purposes of constructing a fire station, employee housing and land banking.” In 2007 the Town acquired the adjacent 1.25-acre Wendy’s parcel as it is a more optimal location, from an emergency services perspective, for the West Vail Fire Station. 3. When was the Chamonix Parcel Land Use Plan adopted? • The Chamonix Parcel Land Use Plan was adopted in 2005 and it outlined development areas for a fire station, employee housing and open space. 4. Has the Chamonix Parcel Land Use Plan been amended? If so, what was the reason for the amendment? 1/21/2014 2 • Yes, the Chamonix Parcel Land Use Plan was amended. It was amended in 2009 following the purchase of the former Wendy’s Parcel. The result was the Chamonix Master Plan, adopted January 2009. 5. What was the objective of the Chamonix Master Plan (2009)? • The ultimate goal was to provide a plan for the Chamonix Master Plan Area that balanced the concepts of density, neighborhood impact, and traffic and parking concerns with aesthetics, sustainability, and value in a way that would address the community need for additional affordable housing in a contextually appropriate way. • The Town Council identified eleven development goals to direct the master planning process. Those goals were: o The site is to be used for development of a fire station and employee housing. o Housing for student fire department employees should be considered in the design of the fire station. o An ambulance substation could be an ancillary use on the site. o Energy-efficient and sustainable design and construction techniques are important. Certification by a particular program (Green Globes, LEED) is to be investigated, although not mandatory. o 100 percent of housing developed should be deed-restricted, for-sale employee housing, with a mix of one-, two-, and three-bedroom units. o The site should be optimized to provide the greatest amount of employee housing. o Re-zoning the site to Housing (H) District is preferred to allow flexibility in design and development. o Additional traffic onto Chamonix Lane should be limited. o One-story of development along Chamonix Lane is acceptable. o All financing and phasing options will be considered. o New pedestrian circulation and access routes should be provided around the site, along Chamonix Road and/or Lane, to ensure connectivity of the surrounding neighborhood to other areas within West Vail. Existing pedestrian paths through the site are to be limited. 6. What role did the community play in the adoption of the master plan? • Over a period of six months, the consulting team developed three schemes exploring various densities and internal character. Development of the schemes benefited from informal and formal meetings with stakeholders and Town staff and from responses to a survey distributed to potential residents. Revisions to the three schemes were presented to the Advisory Committee for additional input and direction, and these refinements were subsequently presented to the Town Council. 1/21/2014 3 Information from the Town department heads was considered in the site planning and design guidelines for the development of the employee housing and fire station at the Chamonix Master Plan Area. Information from other sources was balanced with input from the Focus Groups. 7. What is the relationship of the Chamonix Master Plan (2009) to the Employee Housing Strategic Plan (2008)? • In 2008, the Town of Vail adopted an Employee Housing Strategic Plan. The stated goal of the strategic plan is “to ensure there is deed restricted housing for at least 30% of Vail’s workforce within the Town of Vail.” The strategic plan identifies a series of actions steps the Town should consider, such as developing deed restricted housing on the Chamonix Parcel, in an effort to achieve its adopted housing goal. 8. What is the role of the Chamonix Master Plan in the decision-making process? • Like many of the Town’s adopted master planning documents, the role of the Chamonix Master Plan is to illustrate and articulate the community’s expectations and public input, and to guide decision-makers on how the Chamonix Parcel should be developed. The more a proposal adheres the recommendation of the Master Plan, the more likely it is to be approved. 9. How can the Chamonix Parcel help the Town achieve its goals for deed restricted housing? • The Town’s Employee Housing Strategic Plans identifies Town participation in the development of new deed-restricted employee housing as a “catch up” opportunity. The “catch up” term refers to the shortfall that presently exists in the number of units available to meet the Town’s adopted goal. • The 2011, Peel/Langenwalter Architects and Martin/Martin Consulting Engineers developed a plan showing up to 48 units on the parcel. The plan shows 5 for-sale duplexes (10 units) and up to 38 for-sale or rent condominiums or apartments. Vail Town Council Consultant Team Employee Housing Focus Group Emergency Services Focus Group Neighborhood Focus Group Infrastructure Focus Group Town Department Heads Advisory Committee Town Staff 1/21/2014 4 10. Is the Chamonix Parcel zoned? If so, what is the development potential of the Parcel? • The upper 3.6- acre portion of the Chamonix Parcel is zoned Housing (H) District and the lower (former Wendy’s parcel) is zoned General Use (GU). Pursuant to the adopted land use regulations for each of the two zone districts, the development potential is determined based upon the review and approval of an approved development plan by the Town of Vail Planning & Environmental Commission. Currently, the Chamonix Parcel is master planned for 48 residential units. 11. Have development plans been proposed for the Chamonix Parcel? If so, what were they and what is the status of the project? • No site specific development plans have been proposed for the Chamonix Parcel. In 2011, the Town Council discussed preliminary plans for an initial phase of housing development on the Parcel. A cost estimating set of civil drawings have been prepared for the required below grade utilities on the Parcel. No further action has been taken. 12. Does the Town of Vail have a policy when it comes to conveying ownership of land underneath town-sponsored, for-sale housing developments? • The Town of Vail has retained ownership of the land under all of the deed-restricted, appreciation-capped units in Town. A 99-year land lease exists under Vail Commons, North Trail and the Arosa Duplex. A 35-year land lease is being discussed for the Timber Ridge redevelopment. • An exception to this policy is the Red Sandstone housing development. There, the Homeowner’s Association was given the land under the development because the Town of Vail owned one- third of the land and Eagle River Water & Sanitation District owned two-thirds of the land. 13. To what degree has the Town studied the marketability and suitability of the Chamonix Parcel for development? • The Town completed a market study in 2008 and updated it 2011. An update to the previous studies is presently underway. 14. How has the market conditions changed since the adoption of the master plan? • An updated market study is currently underway. The Town has contracted with Rees Consulting of Crested Butte, CO. to complete the report. The scope of the report will cover such factors as location analysis, demographic and economic framework, ownership market conditions, rental market review, competitive analysis, demand estimates, mortgage availability, and conclusions and recommendations. The report is scheduled to be completed 1/21/2014 5 III. Attachments • Chamonix Master Plan, January 2, 2009 • Resolution No. 2, Series of 2009 • Chamonix Parcel Land Use Plan, August 2, 2005 • Ordinance No. 17, Series of 2005 • Phase 1 & 2 Markup from Martin/Martin Consulting Engineers, 2011 • Chamonix Market Update, February 28, 2011 • Chamonix Market Study, 2008 1/21/2014 1 Chamonix Master Plan 6 January 2009 Adopted by Resolution No. 2, Series of 2009 Prepared For the Town of Vail by 1/21/2014 Chamonix Master Plan Acknowledgements The Chamonix Area Master Plan Amendment is the result of over a year of work on the part of many individuals. Without the effort of the Vail Town Council, the Chamonix Advisory Committee, the Planning and Environmental Commission, the Vail Local Housing Authority, and Town of Vail Staff the Chamonix Area Master Plan would not have been completed. Vail Town Council Planning and Environmental Commission Dick Cleveland, Mayor Bill Pierce, Chair Andy Daly, Mayor Pro-Tem Rollie Kjesbo, Co-Chair Kevin Foley Michael Kurz Mark Gordon Sarah Robinson-Paladino Farrow Hitt Scott Proper Kim Newbury Susie Tjossem Margaret Rogers David Viele Chamonix Advisory Committee Vail Local Housing Authority Bob Armour Mark Ristow, Chair Jack Bergey Sally Jackle Andy Daly Steve Lindstrom Rollie Kjesbo Ethan Moore Ethan Moore Kim Newbury Mark Ristow Margaret Rogers David Viele Town of Vail Staff Consultants Stan Zemler, Town Manager Stan Clauson Associates, Inc. George Ruther, Community Dev. Director Studio B Architects Mark Miller, Vail Fire Chief Drexel, Barrell & Co. Craig Davis, Vail Fire Department Economic & Planning Systems Nina Timm, Housing Coordinator Scott Hunn, Former Project Planner 1/21/2014 Chamonix Master Plan Table of Contents 1. Project Scope 1 2. Process 3 A. Overview B. Advisory Committee C. Town Council Hearing D. Refinement of Schemes E. Sustainability 3. Final Recommendations 6 A. Advisory Committee B. Final Town Council Approval 4. Preferred Option 7 5. Procedural Requirements 9 6. Non-Preferred Options 9 7. Recommended Actions 12 8. Appendix 12 1/21/2014 Chamonix Master Plan 1 1. PROJECT SCOPE The proposed design schemes for the Chamonix Master Plan Area were directed by the stated goals and objectives developed early in the community participation process. The consultant team of Stan Clauson Associates, Inc., Studio B Architects, and Drexel, Barrell & Co. identified a variety of opportunities and constraints from the unique physical characteristics of the Chamonix site. The inclusion of a fire station and student dormitory further complicated the layout and programmatic elements of the site design. The Master Plan Area is generally south facing and sloped and occupies a highly visible location off of the west Vail exit (Exit No. 173) from I- 70. Highway commercial and strip mall commercial development characterizes the uses off of the frontage road and Chamonix Road, with residential neighborhoods characterizing the use patterns off of Chamonix Lane. The Chamonix Master Plan Area is located near to bus stops on both the West Vail Red and Green Loop transit lines. Commercial and employment opportunities are located in the commercial areas within walking distance of the site. The Town Council identified eleven development goals to direct the master planning process. These goals were: · The site is to be used for development of a fire station and employee housing. · Housing for student fire department employees should be considered in the design of the fire station. · An ambulance substation could be an ancillary use on the site. · Energy-efficient and sustainable design and construction techniques are important. Certification by a particular program (LEED, Green Globes) is to be investigated, although not mandatory. · 100 percent of housing developed should be deed-restricted, for-sale employee 1/21/2014 Chamonix Master Plan 2 housing, with a mix of one-, two-, and three-bedroom units. · The site should be optimized to provide the greatest amount of employee housing. · Re-zoning the site to Housing (H) District is preferred to allow flexibility in design and development. · Additional traffic onto Chamonix Lane should be limited. · One-story of development along Chamonix Lane is acceptable. · All financing and phasing options will be considered. · New pedestrian circulation and access routes should be provided around the site, along Chamonix Road and/or Lane, to ensure connectivity of the surrounding neighborhood to other areas within West Vail. Existing pedestrian paths through the site are to be limited. The charge made by the Vail Town Council to “optimize the site” required that the planning concepts developed by the design team be evaluated in the context of adjacent uses. The ultimate goal was to provide a plan for the Chamonix Master Plan Area that balanced the concepts of density, neighborhood impact, and traffic and parking concerns with aesthetics, sustainability, and value in a way that would address the community need for additional affordable housing in a contextually appropriate way. The target group for the Chamonix development was families. The target group income was determined to fall within 60-120% of the Area Median Income (AMI) range for Eagle County, with a possible inclusion of incomes up to 140% of AMI. In current dollars, this equated to a household income range of $47,000 to $94,000, with a possible excursion to $110,000. An important component to the site plan for the Chamonix Master Plan Area was the inclusion of a new fire station. Members of the Town Council recommended the fire station be segregated from the residential use of the Chamonix development for safety and noise reasons. Dedicated access for emergency equipment was requested, as was the incorporation of a community room for public gathering. A student dormitory, to help alleviate the cramped conditions experienced by fire department recruits, was also requested. Finally, provisions for possible Ambulance District participation were to be considered. 1/21/2014 Chamonix Master Plan 3 2. PROCESS A. History of Chamonix Master Plan Area The Town of Vail acquired the 3.6-acre “Chamonix Parcel” in October, 2002, for the purpose of constructing a fire station, employee housing and land banking. To achieve the Town’s goals the Town of Vail adopted the Chamonix Master Plan in 2005. The Master Plan outlined development areas for a fire station, employee housing and open space. In 2007, the Town of Vail was able to acquire the adjacent former Wendy’s Site. It was determined the former Wendy’s Site was a more optimal location, from an emergency services perspective, for a future West Vail Fire Station. Based upon the acquisition of the new property, the Town of Vail determined it could better utilize the two parcels if a new, comprehensive master plan process was completed. A Request for Proposals to hire a new consultant team was issued in September, 2007. The Team of Stan Clauson Associates, Inc., Studio B Architects, and Drexel, Barrell & Co. were retained by the Town of Vail to develop this new Chamonix Master Plan. B. Overview During a period of six months, the consulting team developed three schemes. The three schemes, titled Neighborhood Block, Neighborhood Cluster, and Village Neighborhood, explored varying densities and internal character. Development of the three schemes benefited from informal and formal meetings with stakeholders and Town staff and from responses to a survey distributed to potential residents. Members of the consultant team also attended the Fire Chief Magazine “Station Style Design Conference” in Phoenix to broaden their understanding of current fire station design trends. Revisions to the three schemes were periodically presented to the Advisory Committee for additional input and direction, and these refinements were subsequently presented to the Town Council. Information from the Town department heads was considered in the site planning and design guidelines for the development of the employee housing and fire station at the Chamonix Master Plan Area. Information from other sources was balanced with the input gained from the Focus Groups. 1/21/2014 Chamonix Master Plan 4 C. Advisory Committee On 16 January 2008 a “Kick-Off” meeting was held for the purpose of introducing the Chamonix Site Master Plan project to the Advisory Committee. The Advisory Committee, which was selected by Town of Vail staff as well as citizens, consisted of representative from the Town Council, the Planning and Environmental Commission, the Housing Authority, the Vail Fire Department, Community Development, and two Citizens at Large. Duties of the Advisory Committee consisted of reviewing previous master planning efforts produced for the Chamonix site, engaging in discussions on new opportunities and changed conditions to be considered during the new master planning effort, and issuing recommendations to the consultant team on the parameters that would guide the process and the creation of alternative development scenarios. D. Town Council Hearing The Town Council received an update on the work to date on 20 May 2008. The consultant team presented three schemes which ranged in total unit counts from 50 to 70 units. Optimizing the density of the site, the Council’s charge at the outset of the master planning effort, was not construed to mean that the maximum number of units possible for the site should be sought. Rather, the consultant team sought a balance between number of units and resident population, with special consideration given to the quality of the experience of living in and around the 1/21/2014 Chamonix Master Plan 5 development. The Town Council instructed the design team to seek a middle path on density, considering internal views and character of the surrounding neighborhoods. There was also a discussion of unit sizes, with the Council inclining toward larger units of two, there and possibly four bedrooms. E. Refinement of Schemes Based on the Council’s comments and the request accommodate more family- oriented units, the schemes were refined to concentrate on the creation of two and three bedroom units. Units ranged in size from 768 sq. ft for 1-bedroom units, 1,292 sq. ft. for 2-bedroom flats, 1,333 sq. ft. for 2 bedroom lofts, 1,460 sq. ft. for 3-bedroom units to 1,632 sq. ft. for 3 bedroom duplex units. Because family housing was the stated focus of the development, one bedroom units were incorporated sparingly and generally used as “infill.” There was attention to the possibility of providing 4- bedroom units. While these were not included in the final unit mix, some units were designed with expansion potential, where a fourth bedroom could be finished later. F. Sustainability Various construction methods and site design techniques were discussed for the site which conformed to “green” practices. Both traditional on-site building methods as well as the use of offsite, factory built construction were considered for the ultimate construction of the housing structures. Based on discussions with the Advisory Committee, offsite, factory built construction became the preferred method due to the energy efficiencies as well as lower construction costs inherent with this construction method. Site design standards which focused on solar orientation, limits to site disturbance, brown-field development, open space preservation, access to transit, and on-site storm water retention were integrated into the three schemes as providing the basis for certifiably sustainable construction practices. Certification of the project using a third-party certification program, such as the United States Green Building Council LEED certification process, was considered and was included in the cost estimates. The Advisory Committee determined that third- party certification would create potential advantages in the future marketing of the development, would leverage the green techniques used in the development to 1/21/2014 Chamonix Master Plan 6 encourage or require other private developments to seek the same standards, and foster community pride. As a part of the third party certification process, on-site storm water detention, which would minimize impacts from impermeable surfaces at the Chamonix site to the municipal storm water system, was incorporated in to the design. 3. FINAL RECOMMENDATIONS A. Advisory Committee On 17 July 2008, the final Advisory Committee meeting was held. The consultants presented the final versions of the three schemes and, after discussing the schemes, the Advisory Committee members in attendance voted on their preferred scheme for recommendation to the Town Council. The “Village Neighborhood” scheme, which was the most dense scheme that featured an underground parking garage, received six of the ten votes cast, the “Neighborhood Block” plan received four of the ten votes cast, and the “Neighborhood Cluster” received none of the votes cast. While the Village Neighborhood became the elected preference of the Advisory Committee, a subsequent discussion after the vote tended to suggest that there was significant concern regarding the additional cost and maintenance of the sub-grade parking garage. This concern was noted and included in the report to Town Council. B. Final Council Approval On 5 August 2008, a final presentation of the three schemes was made to the Town Council. Following an update on the Advisory Committee recommendations the council voted six to one for the Neighborhood Block scheme as the preferred option. Reasons given for the preference for the Neighborhood Block scheme ranged from the middle density character of the scheme, the inclusion of open space, the mix of units, and the flexibility of unit layout. Council members voiced support for the third party certification of the project as well as for factory, off-site construction. 1/21/2014 Chamonix Master Plan 7 4. PREFERRED OPTION Neighborhood Block A. Overview The Neighborhood Block scheme contains 58 units. The following unit mix was proposed: · No 1-bedroom units; · twenty, 2-bedroom flats; · sixteen, 2 bedroom lofts; · eight, 3-bedroom units; and · fourteen, 3 bedroom duplexes. This unit mix provided for 81,696 sq. ft. of housing with a density of 16 dwelling units per acre. A main access street, which gained access to the site from Chamonix Road, bisected the site, with 3-bedroom duplexes on the north side and multi-family units on the south side. An alley offers secondary access to the multi-family units. The main 1/21/2014 Chamonix Master Plan 8 street passed through the development to the fire station site. While access to the fire station was intended to be limited, this configuration allowed for dual points of access to the site, thus alleviating internal traffic congestion. The landscape plan located potential community gathering spots throughout the scheme. Semi-private, stepped courtyards were located between the duplex units. Turf areas were limited to large open spaces on the east and west ends of the development. The open space on the east end could be utilized for such uses as a dog park. Landscaping on the east end was kept away from the street to preserve sightlines at the Chamonix Road/Chamonix Lane intersection. The open space on the west end would provide a viewing area into the fire station operations. For safety reasons, the viewing area was segregated from the fire station by a series of low, landscaped walls. The landscape palette utilized native trees and shrubs. Aspens were situated along the northern edge of the site and gradually “spilled” through the spaces created by the structures. In these stands of aspen, a native understory of grasses (Thurber’s fescue, wheatgrass and blue-wild rye) was punctuated by forbs such as columbine, common lupine, golden banner, and strawberry. Along the southern portion of the site, where retention ponds were intended to hold and treat storm water runoff, more water-oriented plants took over. Blue spruce was planted densely to act as a screen to the commercial uses to the south and I-70 beyond. Shrub thickets of willow and birch filled in among the spruce. B. Fire Station The fire station design shown in the Neighborhood Block scheme was the consensus alternative of Fire District staff and the Advisory Committee. The building foundation itself provided retention of the steep slopes to the north of the site, and thereby offered the most cost- effective site design. 1/21/2014 Chamonix Master Plan 9 5. PROCEDURAL REQUIREMENTS Following extensive analysis of both the Chamonix Parcel and the Wendy’s Site, staff determined the Official Land Use Map for the Town of Vail should be amended to reflect the new designation of Chamonix Master Plan Area. The designation of Chamonix Master Plan Area is harmonious with the residential and commercial uses in the surrounding neighborhood and achieves the development goals listed above. Both properties were rezoned to reflect the development goals of the Chamonix Master Plan Area. The 3.6-acre parcel commonly known as the Chamonix Parcel was rezoned from Two-Family Primary/Secondary (P/S) zone district to Housing (H) zone district (Ordinance No. 27, Series of 2008)and the 1.25-acre former Wendy’s Site was rezoned from Commercial Core 3 (CC3) zone district to General Use (GU) zone district (Ordinance No. 26, Series of 2008) on November 18, 2008. Ultimately, the fire station itself will require the approval of a Conditional Use Permit by the Planning and Environmental Commission (PEC) in the General Use (GU) zone district as it is a conditional use rather than a permitted use in all zone districts. The master plan is intended to be used as the development guide for the Chamonix Master Plan Area. The plan identifies the location for the fire station and the employee housing. The plan locates the highest density employee housing to the south of the lower density employee housing. This layout ensures the greatest compatibility with the adjacent neighbors. Locating the fire station on the southern edge of the property also locates this more commercial type use farthest from residential development. 6. NON-PREFERRED OPTIONS A. Neighborhood Cluster Overview The Neighborhood Cluster scheme contained 50 units. Unit mix consisted of: · four, 1-bedroom units; · eight, 2-bedroom flats; · sixteen, 2-bedroom lofts; · fourteen, 3-bedroom units; and · eight, 3-bedroom duplexes. 1/21/2014 Chamonix Master Plan 10 The unit mix provided for 68,232 sq. ft. of housing with a density of 14 dwelling units per acre. A main access street, which gained access to the site from Chamonix Road, passed through the site to the fire station, again offering dual points of access. Access to the fire station was limited for safety reasons. Multi-family units were situated off the north and south side of the access road. Drives extend to the north off the main street to duplex units. The landscape plan, similar to the Neighborhood Block scheme, located community gathering spots throughout the design. These community spots utilized terraced courtyards which were located off of internal pedestrian circulation routes. As with the Neighborhood Block scheme, turf areas were provided on the east and west ends of the development, connected by a pedestrian trail. The turf area on the eastern portion could be utilized for an amenity such as a dog park, while the western turf area offered a segregated vantage point of the fire station operations. 1/21/2014 Chamonix Master Plan 11 B. Village Neighborhood Overview The Village Neighborhood scheme contained 70 units. This scheme offered a combination of lower density duplex and multifamily units and a multi-story, multi- family structure. Unit mix consisted of: · nine, 1 bedroom units; · thirty-two, 2 bedroom flats; · no 2 bedroom lofts; · sixteen, 3 bedrooms; and · ten, 3 bedroom duplexes. The unit mix provided for 87,936 sq. ft. of housing with a density of 19 dwelling units per acre, the highest density of the three schemes. The main access to the site is via Chamonix Road. The entry road offered a traditional neighborhood lane, with duplex units to the north and multi-family units to the south. The lane terminated in the plaza located in the center courtyard of the multi-story, multi-family structure. The plaza was of a more urban character, with paving that allowed for pedestrian 1/21/2014 Chamonix Master Plan 12 and occasional vehicular access as needed. A raised landscaped platform in the center offered a green gathering spot for residents. A parking structure was located below the plaza and provided parking for the residents of the multi-storied structure. The parking structure was accessed via a dedicated entrance off of the frontage road. As in the previous schemes, open space was provided on the eastern and western ends of the site, with similar possibilities for programming. 7. RECOMMENDED ACTIONS A. Amend the Vail Land Use Plan. · Planning and Environmental Commission recommendation on December 22, 2008 · Vail Town Council adoption, on first reading of Ordinance No. 1, Series of 2009, scheduled for January 6, 2009 B. Rezone the “Chamonix Parcel” to Housing (H) District. · Occurred on November 18, 2008 (Ordinance No. 26, Series of 2008) C. Rezone the “Wendy’s Site” to General Use (GU) District. · Occurred on November 18, 2008 (Ordinance No. 27, Series of 2007) D. Complete the final Chamonix Affordable Housing Development Cost and Revenue Analysis by Economic & Planning Systems. · Draft complete on December 9, 2008 E. Complete a site and unit mix specific market study to determine demand for the development, based on the pre-determined area median income target. · Initiated Phase II of contract with Economic & Planning Systems on December 16, 2008. Anticipated completion by February 15, 2009. 8. APPENDIX A. Neighborhood Block Site Plan B. Chamonix Affordable Housing Development Cost and Revenue Analysis C. Vicinity Map 1/21/2014 Chamonix Master Plan 13 1/21/2014 Chamonix Master Plan 14 Appendix B CHAMONIX AFFORDABLE HOUSING DEVELOPMENT COST AND REVENUE ANALYSIS Prepared for: Town of Vail Prepared by: Economic & Planning Systems, Inc. December 9, 2008 1/21/2014 Chamonix Master Plan 15 TABLE OF CONTENTS PAGE I. Introduction.................................................................................................2 Project Background..........................................................................................2 Scope of EPS Analysis........................................................................................2 II. Comparative Analysis................................................................................3 Comparative Projects.......................................................................................3 III. Feasibility Analysis.....................................................................................10 Project Costs.....................................................................................................10 Project Revenues.............................................................................................11 Cost Scenerios..................................................................................................13 IV. Findings........................................................................................................0 Cost Considerations..........................................................................................0 Unit Subsidy.........................................................................................................1 Buyer Lending Issues..........................................................................................2 Additional Considerations................................................................................2 1/21/2014 Chamonix Master Plan 16 LIST OF TABLES PAGE Table 1 Total Project Costs..........................................................................11 Table 2 Affordability Calculation................................................................12 Table 3 Subsidy at Optimal AMI Levels......................................................14 Table 4 AMI Levels for Stick Build & Standard Subsidy............................15 Table 5 AMI Levels for Modular & Standard Subsidy...............................16 Table 6 Incomes Required to Cover Costs of Stick Built Construction.17 Table 7 Incomes Required to Cover Costs of Modular Construction...18 Table 8 Summary of Findings.........................................................................1 1/21/2014 Chamonix Master Plan 2 I. INTRODUCTION The proposed Chamonix affordable housing project site is located on Chamonix Lane in close proximity to the West Vail interchange. The Town purchased the site several years ago for the purpose of constructing housing. The former Wendy’s site was purchased more recently for the purpose of constructing a fire station. Collectively, the two sites total 5.5 acres and are slated for housing and the fire station. Surrounding land uses in the area consist of highway oriented commercial development. Further north from the highway along Chamonix Lane, the land use pattern is composed of both single family and multi family residential uses. PROJECT BACKGROUND The Town of Vail recently retained Stan Clauson Associates, Inc. to complete a site plan and cost estimation for an affordable housing project on the Chamonix site. As part of the work, Clauson identified three possible development programs with varying levels of density and building types. Clauson’s work also estimated costs associated with construction, engineering, and landscaping of the scenarios for both stick built and modular construction. In addition, the report considered additional costs and fees associated with achieving LEED certification. The analysis was completed in the fall of 2008. From this work, the Town Council identified scheme 1, Neighborhood Block, as the favored development program. Included in this program are 58 total units with an overall density of 16 dwelling units per acre. The project cost estimated by Stan Clauson ranges from $16.7 to $23.3 million depending upon the building construction method. As part of the evaluation of the project, the Town seeks to develop a full understanding of any and all costs in addition to land costs that may occur throughout the course of the project’s implementation. SCOPE OF EPS ANALYSIS Economic & Planning Systems (EPS) was retained by the Town of Vail to conduct a feasibility study of the project, building on the work done by Stan Clauson Associates. First, EPS researched comparable projects within Summit County, the Roaring Fork Valley, and Eagle County to identify prominent factors influencing the overall economics of a number of projects. Second, EPS modeled potential Chamonix project revenue based on targeted AMI levels. Project revenue was then compared to estimated costs, including additional cost factors identified by EPS, to determine the AMI requirements needed to provide sufficient revenue to make the project feasible. 1/21/2014 Chamonix Master Plan 3 II. COMPARATIVE ANALYSIS EPS compiled comparative cost information for seven projects in the Roaring Fork Valley, Summit County, and Eagle County based on interviews with project representatives. This section discusses the individual projects and then summarizes the relevant findings. COMPARATIVE PROJECTS SUMMIT COUNTY Vic’s Landing The Vic’s Landing project is located in the Town of Breckenridge across from the Breckenridge Golf Course on Tiger Road. The project was spurred by an annexation request by the developer, Tom Silengo, and the corresponding request for water taps. As part of the annexation, the Town’s inclusionary housing requirement was triggered. The Town required the developer to construct 24 affordable units in exchange for entitlements for 12 market rate units. Town contribution to the project viability was limited to fee waivers and the entitlement of the 12 market units. The project is evenly split between one- and two-bedroom units with target AMI levels of 80 and 100 percent. The 24-unit project consists of six four-plexes. One-bedroom units are priced at $185,000 and target income levels at 80 percent of AMI. Two-bedroom units target both 80 and 100 percent of AMI and are priced at $229,500 and $285,000 per unit. Among other standards, the deed restriction limits annual appreciation to three percent or the increase in local AMI, dependant upon whichever measure is higher. In addition, resales of the units are subject to income testing on the part of the buyer with a 10 percent income level tolerance. Closings began in April of 2008. The one-bedroom units in the project are sold out. Approximately half of the two bedroom units are sold. It should be noted that the two bedroom units were completed later and thus have been impacted to a greater degree by current credit restrictions. Federal Housing Administration (FHA) approval of the project was not originally sought, although an effort on the part of the developer is currently being made to receive approval. The approval is expected to broaden market demand as buyer financing will become more available. 1/21/2014 Chamonix Master Plan 4 Valley Brook Valley Brook is a project in the final planning stages also located in the Town of Breckenridge on northeast corner of Airport Road and Valley Brook Street. The proposed project is being developed on a fee basis by Mercy Housing Colorado as a result of a Town issued RFQ in November 2007. As currently proposed, the project includes 42 units targeting income levels at 80 and 100 percent of AMI. The project is composed of two- and three-bedroom units in two-story townhomes. Approximately 52 percent of the units are targeted for AMI of 80 percent or less and 48 percent of the units are targeted for AMI of 100 percent or less. Units at 80 percent range in price from $133,000 to $160,000 per unit. Prices at 100 percent range from $200,000 to $250,000. Similar to Vic’s Landing, the deed restriction limits annual appreciation to three percent or the percent by which AMI increases. Hard costs are currently estimated at $184 per square foot with total a total square foot cost of $230 per square foot for hard and soft costs as well as site work. The cost excludes land and off-site costs. Construction prices have increased approximately 10 percent from the time of that the project was initially bid. However, both the developer and representatives from the Town expect to benefit from a downward renegotiation of costs. The developer is charging a one-time fee equivalent to approximately four percent of total costs, although a 10 percent fee is typically used by the developer. The project is being developed with a high level of subsidy with contributions from town, state, and federal sources. In total, it is estimated that grant funding will account for $4.7 million of the project’s budget, or approximately 38 percent of total costs, which does not include costs of land (which was contributed to the project by the Town). The subsidy figure does include fee waivers by the Town. In addition, the Town may also contribute an additional subsidy in grant funding. At this time, the subsidy per unit is estimated at $117,000 per unit. Roaring Fork Valley Rodeo Place The Town of Snowmass has recently completed the first homes in Rodeo Place, a 27-unit affordable housing development located near the Rodeo Grounds. The project is located within the Town of Snowmass, approximately half the distance between the base area and Highway 82, and is highly visible to traffic along Brush Creek Drive. The project consists of 20 single family homes, two duplexes, and one triplex. Phase I accounts for 15 of the 27 total units. The Town finished and closed six units in the fall of 1/21/2014 Chamonix Master Plan 5 2008 and plans to have the balance of Phase I completed by the spring of 2009. The homes are modular. Town staff noted that there have been problems coordinating the site work and the manufacturer resulting in project delays and cost increases. Nevertheless, the Town staff is pleased with the overall process and the quality of the architectural design. The Town did not established AMI targets for the prospective residents but relied on surveys of interested households to derive home prices. Approximately 50 to 60 households with at least one full-time employee based in Snowmass expressed interest in the project. Most of these households have maintained interest in the project since the surveys were first distributed in mid 2007. The deed restriction, which limits appreciation to three percent per year (among other terms), has caused some prospective purchasers to drop out of the process. However, because housing options are limited (particularly in Snowmass), most households have maintained their participation throughout the development process and the pool of buyers has remained sufficiently large to provide adequate demand. Based on the response to surveys, homes were designed to fall into a price range spanning from $300,000 to $550,000 per unit (which translates to an AMI of approximately 140 to more than 250 percent). The small single family homes and duplexes are priced at $300,000, for 1,400 square feet of finished living area plus 700 square feet of basement floor area ($214 per square foot, finished). Medium sized single family homes are priced from $425,000 to $450,000 for 1,800 square feet, plus 900 square feet of basement area ($229 per finished square foot). The largest are priced at $550,000 for 2,150 square feet plus 950 of basement floor area ($256 per square foot, finished). Basements were not an optional feature, as the Town mandated that they be included in each home. The requirement not only ensures adequate storage, but also creates additional bedroom area to be used for sublets and/or roommates, increasing the number of employees that can be housed locally. The construction costs range from $210 to $225 per square foot and covers only vertical costs. The Town absorbed costs for all on-site infrastructure improvements as well as soft costs related to the site engineering and architectural design. While staff did not have specific costs for these services, they estimate a 25 percent increase for these costs resulting in a total cost of $262 to $281 per square foot. The Town had acquired the land previously and contributed the cost of the land as a form of subsidy. Subsidies range from $33,000 to $80,000 per unit based on an average construction cost of $271 per square foot. The smaller units generate $300,000 of revenue while construction costs total $380,000 (1,400 * 271), resulting in a net subsidy of $80,000. The medium sized units required a subsidy of $50,000 and the largest units were subsidized by $33,000. The average among all three unit types is $54,000. 1/21/2014 Chamonix Master Plan 6 Burlingame Ranch Burlingame Ranch is a 21.5 acre affordable housing development in the Town of Aspen located off Highway 82 to the north of the Bar/X Ranch. The project is entirely dedicated to affordable housing and planned to be developed over three phases and will include a total of 236 units. To date, 91 units have been constructed on the site. Income targets for the project range widely, although the majority of the units accommodate income levels that range from approximately 80 to 140 percent of AMI. (Note that the Aspen Housing Office sets its own median income and corresponding AMI levels. The targets shown here are approximate.) The first phase of development includes 15 one bedroom units, 30 two bedroom units, 39 three bedroom units, and 7 single-family lots. Most of the units are townhomes. In addition to the identified income limits, residents are also required to earn a minimum of 75 percent of their yearly income within Pitkin County. The units are deed restricted to three percent annual appreciation or the percent by which the Consumer Price Index (CPI) increases. All 91 units included in the first phase have been sold. An extensive audit of Phase I costs in Burlingame Ranch was completed as a result of a brochure that was published in 2005 misstating the total cost of the project to the public. The average sales price per unit (including lots) for the project was approximately $230,000. Hard costs for the project averaged $170 per square foot with an average total cost of $202 per square foot of hard and soft costs (which exclude land, off-site, and mitigation costs). Including land and all other costs, such an off-site infrastructure, mitigation, and community benefits, the total project cost $236 per square foot. The project’s audit indicates a per unit subsidy of $331,567, or approximately 59 percent of the project’s costs. This contrasts with an anticipated subsidy of $184,455 per unit. The increase is largely attributable to programmatic changes made by Council as well as shifting AMI targets to lower levels. The project costs increased by $11.7 million, resulting in relatively high per unit subsidies. Iron Bridge Iron Bridge is an affordable housing development located in Garfield County between Carbondale and Glenwood Springs. The affordable component of the project is part of the larger 300 home development by Iron Bridge Homes, LLC. The inclusion of affordable units in the development was a requirement of Garfield County’s inclusionary housing ordinance triggered by the developer’s request for a Planned Unit Development (PUD) density increase. A total of 30 deed restricted affordable single family units were required. County representatives expect 24 to be completed on site and another six to be addressed via fees-in-lieu. 1/21/2014 Chamonix Master Plan 7 1/21/2014 Chamonix Master Plan 8 The affordable units are all comprised of 3-bedroom 2-bath units with an average size of 1,430 square feet. The units are targeted to families earning 80 percent or less of AMI and working in Garfield County. The units are priced at $230,000 as a result of calculation of AMI based on a 6-person family. Garfield County has since amended their ordinance to limit the amount of people able to be included in the AMI calculation and maintain lower price points. The units are deed restricted to three percent annual appreciation or the percent by which the Consumer Price Index (CPI) increases (among other requirements). Sales within the affordable component have been slow, as the developer has closed on only four units However, the balance of the project is under contract and the remaining 20 units are awaiting their certificate of occupancy which has been delayed as a result of the involvement of Lehman Brothers in the construction loan. As a result, the completion of the units and release has been delayed several months. No County or other public subsidy was used in the construction of the units. Developer representatives report that their approach was to sell the units at the cost of vertical construction and shift costs related to land, infrastructure, and soft costs to the market rate portion of the development. Vertical construction costs are estimated range from $160 to $175 per square foot. The project is not currently FHA approved, although the developer and County are investigating the measures necessary to become approved. EAGLE COUNTY Stratton Flats Stratton Flats is a 47-acre housing development located in the Town of Gypsum south of Hwy 6 on the northwest side of the Eagle County Regional Airport. The developer for the project is Meritage Development Group. At build-out the 339 unit project will include 152 single family homes, 118 townhomes, and 69 condominiums of which 226 will include deed restrictions. At this time, a total of seven units have been permitted on the 47.3 acre site. The affordable units target income levels at 140 percent of AMI and are evenly divided between Town of Gypsum and Eagle County deed restrictions. The Gypsum restriction limits income to 140 percent of AMI and requires that buyers earn 85 percent of their income in Eagle County. The Eagle County deed restriction limits income to 140 percent of AMI and includes a cap on annual appreciation based on the increase to the local AMI. Units with the less restrictive Town of Gypsum deed restriction are priced at approximately $320,000 to $350,000 for townhomes and between $180,000 and $245,000 for condominiums. Units with the Eagle County restriction are priced at $350,000 for single family units, $300,000 to $330,000 units for townhomes, and between $180,000 and 1/21/2014 Chamonix Master Plan 9 $245,000 for condominiums. Market rate units range from $400,000 to $430,000 for single- family homes and between $340,000 and $380,000 for townhomes. To date, the developer has written 8 contracts for units in the project. The developer reported that approximately 80 people had pursued loans without success. As a result, the developer has pursued and recently received FHA approval, which allows for 97 percent Loan-to- Value buyer financing. The project was completed using modular construction at a total cost of $200 per square foot. From the time of initially ordering the modular units through the current point in the construction process, the developer reported a cost increase of eight percent. Within the Gypsum deed restricted units, there is a per unit subsidy of approximately $23,000 which was provided in the form of fee waivers by the Town. Eagle County units required higher subsidies of approximately $23,000 of waived Town of Gypsum fees plus $40,000 per unit which was provided through a $4.5 million equity investment in the project by Eagle County in the form of a subordinated position. Eagle Ranch Village Eagle Ranch Village is a land development project by East-West Partners located in the Town of Eagle off Grand Avenue on Sylvan Lake Road. The project includes approximately 60 units which were constructed as part of the Town’s inclusionary housing ordinance and were constructed approximately five to six years ago. The affordable units within the project are housed in four-plexes within the Sylvan Square development, which is part of a larger development that includes single-family houses, entitled lots, and additional multifamily housing. The affordable units sold for approximately $300,000 per unit as compared to market rate units within the project that sold for approximately $350,000 per unit. Hard costs within the project were approximately $180 per square foot for vertical construction only. Soft costs accounted for approximately 20 percent of hard costs resulting in a total cost to approximately $216 per foot. The developer of the affordable units reported that no profit margin was received on the affordable units. No income restrictions exist on the units. The deed restriction requires that residents must live and work in Eagle County and limits annual appreciation to three percent or CPI, although this provision is waived if the seller cannot find a buyer. The Eagle County Housing Authority has the first right of purchase from the owner. The affordable units were provided a development subsidy through a land donation by East-West Partners as well as a 0.2 percent transfer fee on the market rate units. The fee is allocated by a community housing committee to individual units. Including land and the transfer fee, the total subsidy in Sylvan Square was approximately $50,000 per unit. 1/21/2014 Chamonix Master Plan 10 III. FEASIBILITY ANALYSIS EPS conducted a financial analysis to provide a full indication of the costs the Town of Vail will incur in the development of the Chamonix site. EPS analyzed potential revenues from varying AMI levels and projected the per unit subsidies needed to finance the project. Project Costs Town Council has indicated a preference for Scheme 1 of the Stan Clausen proposals which includes 36 two-bedroom and 22 three-bedroom units for a total of 58 units. EPS compiled the cost information provided by the consultant with line items for a developer’s fee and contingency consideration. With these factors added to the original estimate, the total construction cost for the “stick built” Option A is $29,523,540. The cost for the modular built Option B is $21,844,116, as shown on the following page in Table 1. 1/21/2014 Chamonix Master Plan 11 Table 1 Total Project Costs Chamonix Affordable Housing Costs and Revenue Analysis Sources & Uses Option A Option B Total Square Feet 81,696 81,696 Program 1 Bedroom 00 2 Bedroom 3636 3 Bedroom 22 22 Subtotal 58 58 Costs Cost Factor Engineering $848,328$848,328 Engineering Services 7.0%59,38359,383 Construction 23,283,36016,747,680 Landscaping 748,552748,552 LEED Certification135,420 135,420 Subtotal $25,075,043 $18,539,363 Cost per Square Foot $307$227 Contingency Engineering Contingency 15.0%$127,249$127,249 Construction Contingency 1 10.0%2,328,3361,674,768 Landscaping Contingency 15.0%112,283 112,283 Subtotal $2,567,868 $1,914,300 Fees LEED Certification Fee 0.5%125,37592,697 Developer Fee 1 7.0%$1,755,253 $1,297,755 Subtotal $1,880,628 $1,390,452 Total Costs $29,523,540 $21,844,116 1 EPS additions to Stan Clauson estimate Source: Economic & Planning Systems, Stan Clauson Associates H:\18887-Vail Chamonix Housing Site Feasibility Analysis\Data\[18887 - AMI Eagle County.xls]Costs Neighborhood Block Project Revenues EPS estimated appropriate sales prices based upon an Average Median Income (AMI) of $75,000 for a household of three in Eagle County, as shown in Table 2. Target home prices range from approximately $228,000 at 80 percent of AMI to $407,300 at 140 percent AMI. 1/21/2014 Ch a m o n i x M a s t e r P l a n 12 Ta b l e 2 Af f o r d a b i l i t y C a l c u l a t i o n Ch a m o n i x A f f o r d a b l e H o u s i n g C o s t s a n d R e v e n u e A n a l y si s De s c r i p t i o n Fa c t o r 80 % 90 % 10 0 % 11 0 % 12 0 % 13 0 % 140% Ma x i m u m I n c o m e 2 B e d r o o m $6 0 , 3 2 0 $ 6 7 , 8 6 0 $ 7 5 , 4 0 0 $ 8 2 , 9 4 0 $ 9 0 , 4 8 0 $ 9 8 , 0 2 0 $ 1 0 5 , 5 6 0 3 B e d r o o m $6 0 , 3 2 0 $ 6 7 , 8 6 0 $ 7 5 , 4 0 0 $ 8 2 , 9 4 0 $ 9 0 , 4 8 0 $ 9 8 , 0 2 0 $ 1 0 5 , 5 6 0 Ho u s i n g P a y m e n t C a p a c i t y Mo n t h l y P a y m e n t 30 % $1 , 5 0 8 $ 1 , 6 9 7 $ 1 , 8 8 5 $ 2 , 0 7 4 $ 2 , 2 6 2 $ 2 , 4 5 1 $ 2 , 6 3 9 Le s s : I n s u r a n c e $6 0 0 / Y e a r -$ 5 0 - $ 5 0 - $ 5 0 - $ 5 0 - $ 5 0 - $ 5 0 - $ 5 0 Le s s : P r o p e r t y T a x e s 0. 5 0 % -$ 9 0 -$ 1 0 0 -$ 1 1 0 -$ 1 2 0 -$ 1 3 0 -$ 1 4 0 -$150 Ne t A v a i l a b l e f o r D e b t S e r v i c e $1 , 3 6 8 $1 , 5 4 7 $1 , 7 2 5 $1 , 9 0 4 $2 , 0 8 2 $2 , 2 6 1 $2,439 Af f o r d a b i l i t y T a r g e t Lo a n A m o u n t 7% i n t e r e s t $2 0 5 , 6 0 0 $2 3 2 , 5 0 0 $2 5 9 , 3 0 0 $2 8 6 , 1 0 0 $3 1 2 , 9 0 0 $3 3 9 , 8 0 0 $366,600 Lo a n T e r m 30 Y e a r s 3 0 Y e a r s 3 0 Y e a r s 3 0 Y e a r s 3 0 Y e a r s 3 0 Y e a r s 3 0 Years Do w n P a y m e n t 10 % 1 0 % 1 0 % 1 0 % 1 0 % 1 0 % 1 0 % Lo a n : V a l u e R a t i o 90 % 90 % 90 % 90 % 90 % 90 % 90% Ta r g e t A f f o r d a b l e H o u s e P r i c e $2 2 8 , 4 0 0 $2 5 8 , 3 0 0 $2 8 8 , 1 0 0 $3 1 7 , 9 0 0 $3 4 7 , 7 0 0 $3 7 7 , 6 0 0 $407,300 So u r c e : H U D ; E c o n o m i c & P l a n n i n g S y s t e m s H: \ 1 8 8 8 7 - V a i l C h a m o n i x H o u s i n g S i t e F e a s i b i l i t y A n a ly s i s \ D a t a \ [ 1 8 8 8 7 - A M I E a g l e C o u n t y . x l s ] O w n r A f f o r d 2 & 3 B e d r o o m 1/21/2014 Chamonix Master Plan 13 COST SCENERIOS The total amount of revenue available to the project was determined by the number of units within the project dedicated to each income level. Total income was then compared to the total project cost to determine the net difference. This amount provides the basis of the estimate of subsidy per unit for the proposed Chamonix project in three scenarios. For this analysis, the costs are based on the San Clauson report. Stick built construction is assumed to cost $285 per square foot and modular is assumed to cost $205 per square foot. The field research indicates that these may be overly conservative at this time and that a lower cost figure may be reasonable. In the analysis that follows, the original cost figures have been maintained. It is recommended that the feasibility analysis be rerun with lower figures after the Town has had the opportunity to review them. The first scenario examined an optimal level of affordability with half of the units targeting households at 80 percent of AMI and half at 100 percent AMI. The second scenario determines the price points necessary to reach a per unit subsidy consistent with the comparative projects in the region. The third scenario examines the per unit prices needed for the project to break even. In the tables that follow, Scenario A refers to stick built construction costs and Scenario B is based on modular costs. 1/21/2014 Chamonix Master Plan 14 OPTIMAL AMI TARGET An optimal AMI level of 80 and 100 percent of AMI was used in this analysis. At these levels a stick built project requires a per unit subsidy of approximately $251,000 per unit, as shown in Table 3. Modular construction at these incomes requires a per unit subsidy of $118,000. Table 3 Subsidy at Optimal AMI Levels Chamonix Affordable Housing Costs and Revenue Analysis Revenue Sources Option A Option B 2 Bedroom % of Total 80% AMI - 2 Bdrm.50%4,111,2004,111,200 90% AMI - 2 Bdrm.0%00 100% AMI - 2 Bdrm.50%5,185,8005,185,800 110% AMI - 2 Bdrm.0%00 120% AMI - 2 Bdrm.0%00 130% AMI - 2 Bdrm.0%00 140% AMI - 2 Bdrm.0%0 0 Subtotal 100%9,297,000 9,297,000 3 Bedroom 80% AMI - 3 Bdrm.50%2,512,4002,512,400 90% AMI - 3 Bdrm.0%00 100% AMI - 3 Bdrm.50%3,169,1003,169,100 110% AMI - 3 Bdrm.0%00 120% AMI - 3 Bdrm.0%00 130% AMI - 3 Bdrm.0%00 140% AMI - 3 Bdrm.0%0 0 Subtotal 100%5,681,500 5,681,500 Total Revenue $14,978,500 $14,978,500 Project Profit/Loss Square Feet ($178.04)($84.04) Unit ($250,777)($118,373) Total ($14,545,040)($6,865,616) Source: Economic & Planning Systems, Stan Clauson Associates H:\18887-Vail Chamonix Housing Site Feasibility Analysis\Data\[18887 - AMI Eagle County.xls]Revenues Neighborhood Block 1/21/2014 Chamonix Master Plan 15 TYPICAL SUBSIDY Based on the research of regional projects, a representative per unit subsidy for stick built construction in a project with only affordable units is approximately $120,000 per unit. A typical subsidy for modular construction is approximately $30,000 per unit. To reach a typical stick built subsidy, the program required units to be evenly split between 130 and 140 percent of AMI, as shown in Table 4. At these income levels, the project could be feasible with a per unit subsidy of approximately $117,000. Table 4 AMI Levels for Stick Build & Standard Subsidy Chamonix Affordable Housing Costs and Revenue Analysis Revenue Sources Option A 2 Bedroom % of Total 80% AMI - 2 Bdrm.0%0 90% AMI - 2 Bdrm.0%0 100% AMI - 2 Bdrm.0%0 110% AMI - 2 Bdrm.0%0 120% AMI - 2 Bdrm.0%0 130% AMI - 2 Bdrm.50%6,796,800 140% AMI - 2 Bdrm.50%7,331,400 Subtotal 50%14,128,200 3 Bedroom 80% AMI - 3 Bdrm.0%0 90% AMI - 3 Bdrm.0%0 100% AMI - 3 Bdrm.0%0 110% AMI - 3 Bdrm.0%0 120% AMI - 3 Bdrm.0%0 130% AMI - 3 Bdrm.50%4,153,600 140% AMI - 3 Bdrm.50%4,480,300 Subtotal 50%8,633,900 Total Revenue $22,762,100 Project Profit/Loss Square Feet ($82.76) Unit ($116,577) Total ($6,761,440) Source: Economic & Planning Systems, Stan Clauson Associates H:\18887-Vail Chamonix Housing Site Feasibility Analysis\Data\[18887 - AMI Eagle County.xls]Revenues Neighborhood Block 1/21/2014 Chamonix Master Plan 16 Modular construction affords a greater flexibility in the program required to reach typical subsidies. When 50 percent of units are priced for 120 percent AMI and the remaining units are divided between 110 and 130 percent AMI, a per unit subsidy of approximately $33,000 is needed, as shown in Table 5. Table 5 AMI Levels for Modular & Standard Subsidy Chamonix Affordable Housing Costs and Revenue Analysis Revenue Sources Option B 2 Bedroom % of Total 80% AMI - 2 Bdrm.0%0 90% AMI - 2 Bdrm.0%0 100% AMI - 2 Bdrm.0%0 110% AMI - 2 Bdrm.30%3,496,900 120% AMI - 2 Bdrm.50%6,258,600 130% AMI - 2 Bdrm.20%2,643,200 140% AMI - 2 Bdrm.0%0 Subtotal 100%$12,398,700 3 Bedroom 80% AMI - 3 Bdrm.0%0 90% AMI - 3 Bdrm.0%0 100% AMI - 3 Bdrm.0%0 110% AMI - 3 Bdrm.30%2,225,300 120% AMI - 3 Bdrm.50%3,824,700 130% AMI - 3 Bdrm.20%1,510,400 140% AMI - 3 Bdrm.0%0 Subtotal 100%$7,560,400 Total Revenue $19,959,100 Project Profit/Loss Square Feet ($23.07) Unit ($32,500) Total ($1,885,016) Source: Economic & Planning Systems, Stan Clauson Associates H:\18887-Vail Chamonix Housing Site Feasibility Analysis\Data\[18887 - AMI Eagle County.xls]Revenues Neighborhood Block 1/21/2014 Chamonix Master Plan 17 MINIMAL SUBSIDY The following two tables test hypothetical scenarios in which the Town pays the least amount of subsidy. For stick built construction, the project requires a subsidy of $102,000 per units even if 100 percent of the units are sold at 140 percent of AMI, as shown in Table 6. Table 6 Incomes Required to Cover Costs of Stick Built Construction Chamonix Affordable Housing Costs and Revenue Analysis Revenue Sources Option A 2 Bedroom % of Total 80% AMI - 2 Bdrm.0%0 90% AMI - 2 Bdrm.0%0 100% AMI - 2 Bdrm.0%0 110% AMI - 2 Bdrm.0%0 120% AMI - 2 Bdrm.0%0 130% AMI - 2 Bdrm.0%0 140% AMI - 2 Bdrm.100%14,662,800 Subtotal 0%14,662,800 3 Bedroom 80% AMI - 3 Bdrm.0%0 90% AMI - 3 Bdrm.0%0 100% AMI - 3 Bdrm.0%0 110% AMI - 3 Bdrm.0%0 120% AMI - 3 Bdrm.0%0 130% AMI - 3 Bdrm.0%0 140% AMI - 3 Bdrm.100%8,960,600 Subtotal 0%8,960,600 Total Revenue $23,623,400 Project Profit/Loss Square Feet ($72.22) Unit ($101,727) Total ($5,900,140) Source: Economic & Planning Systems, Stan Clauson Associates H:\18887-Vail Chamonix Housing Site Feasibility Analysis\Data\[18887 - AMI Eagle County.xls]Revenues Neighborhood Block 1/21/2014 Chamonix Master Plan 18 The Town could hypothetically achieve feasibility with minimal subsides using modular construction costs, as shown in Table 7. The sales modular constructed units are cost neutral when 40 percent and 50 percent of units are targeted for incomes of 130 and 140 percent of AMI, respectively. At these sales prices a small number of units can be devoted to 120 percent of AMI. Table 7 Incomes Required to Cover Costs of Modular Construction Chamonix Affordable Housing Costs and Revenue Analysis Revenue Sources Option B 2 Bedroom % of Total 80% AMI - 2 Bdrm.0%0 90% AMI - 2 Bdrm.0%0 100% AMI - 2 Bdrm.0%0 110% AMI - 2 Bdrm.0%0 120% AMI - 2 Bdrm.10%1,390,800 130% AMI - 2 Bdrm.50%6,796,800 140% AMI - 2 Bdrm.40%5,702,200 Subtotal 60%$13,889,800 3 Bedroom 80% AMI - 3 Bdrm.0%0 90% AMI - 3 Bdrm.0%0 100% AMI - 3 Bdrm.0%0 110% AMI - 3 Bdrm.0%0 120% AMI - 3 Bdrm.10%695,400 130% AMI - 3 Bdrm.50%4,153,600 140% AMI - 3 Bdrm.40%3,665,700 Subtotal 60%$8,514,700 Total Revenue $22,404,500 Project Profit/Loss Square Feet $6.86 Unit $9,662 Total $560,384 Source: Economic & Planning Systems, Stan Clauson Associates H:\18887-Vail Chamonix Housing Site Feasibility Analysis\Data\[18887 - AMI Eagle County.xls]Revenues Neighborhood Block 1/21/2014 Chamonix Master Plan 0 IV. FINDINGS The following analysis summarizes the most prominent issues encountered in the development of the selected affordable housing projects. Issues are organized by cost considerations, subsidy levels, and buyer lending. Cost Considerations Construction costs for the projects under consideration in this report ranged from $200 to $281 per square foot, as shown on the following page in Table 8, which summarizes the costs, revenues, and subsidies for the projects evaluated. The construction cost data shown in the table is exclusive of land, off site mitigation, and other considerations. The figures generally include hard costs, soft costs, and on-site infrastructure. Results indicate frequent instances of construction costs around $200 to $230 per square foot. Developers experienced cost escalations ranging from 8 to 20 percent from the time an initial bid was received to construction. However, project representatives repeatedly indicated that downward pressure in materials costs has fallen 20 percent from 2007 to 2008. Contractors in the planning stages are tending to renegotiate prices in light of weakening demand for construction materials worldwide. 1/21/2014 Chamonix Master Plan 1 Table 8 Summary of Findings Chamonix Affordable Housing Costs and Revenue Analysis ProjectPlannedBuiltTarget AMI Construction CostSubsidy 5 Cost EscalationPrice Range (sq. ft.)(per unit) Summit County Vic's Landing242480% to 100%---fee waivers---$185,000 - $285,000 Mercy Housing42---80% & 100%$230$117,00010%$133,000 - $250,000 Roaring Fork Valley Rodeo Ground279140% - 250%$281$300,000 - $550,000 Burlingame Ranch9191 80% to 140% 2 $202$332,00012%avg. $230,000 Iron Bridge2424 80% 3 $202 4 $0---$230,000 Eagle County Stratton Flats 1 2267140%$200$23,000 - $40,0008%$180,000 - $350,000 Eagle Ranch Village6060live/work in Cty.$216 4 $50,00020%$300,000 1 Modular units 2 Majority of units in this range, AMI level based on survey 3 Based on six person household 4 Total cost derived by allocating 20% of hard costs to soft costs 5 Burlingame Ranch and Mercy Housing figure do not include waived fees Source: Economic & Planning Systems H:\18887-Vail Chamonix Housing Site Feasibility Analysis\Data\[18887 - Projects.xls]Summary Unit Subsidy Subsidies take many forms in affordable housing development. The research shows a clustering of per unit subsidies in the $20,000 to $50,000 range as well as a cluster on the upper end that spans from $120,000 to $330,000. In all cases, these subsidy levels are on top of land costs. In each of the case studies provided, land was provided at no cost to the affordable units, which is a minimum threshold for pursuing an affordable housing project at this time. Generally, the projects requiring lower subsidies benefit from market rate units that defray the land, soft costs, developer fees, on-site infrastructure, and off-site mitigation. For example, Iron Bridge, Stratton Flats, Vic’s Landing, and Eagle Ranch Village all received indirect subsidy through the ability of the developer to build market rate units on-site. In addition, the projects also received fee waivers to help offset the costs of affordable units. The $23,000 to $40,000 subsidy at Stratton Flats includes both fee waivers as well as the benefit of a $4.5 million equity contribution from Eagle County. The $50,000 per unit subsidy at Eagle Ranch Village includes both fee waivers proceeds from a RETA and the value of a land contribution from the master developer. Another way to reduce subsidies is to increase sales prices and target higher AMI levels. The Snowmass project reflects relatively unique approach as virtually all of the units are priced at the upper end of the affordable spectrum, reaching approximate AMI levels near (or above) 140 percent. The Town was able to reduce the subsidy to $54,000 per unit based on sales prices for some units that exceeded $500,000. The project with the lowest required subsidy, Stratton Flats, 1/21/2014 Chamonix Master Plan 2 reflects a combination of benefits, including on-site market rate units, modest deed restriction terms, as well as higher AMI targets. In projects without supporting market rate units and conventional AMI targets that reach households earning as little as 80 percent of AMI, higher subsidies are required to cover project costs. The proposed Valley Brook project anticipates a per unit subsidy of approximately $117,000. Burlingame Ranch requires $332,000 per unit. Moving forward, the Town of Vail should recognize that land subsidy alone will be insufficient for the project unless construction costs drop and/or AMI targets are set high. The Town should carefully consider higher AMI levels and should set them only after completing additional market analysis, as identified below. Generally, the Town should anticipate committing additional levels of subsidy to the project based on the research of comparative projects. Buyer Lending Issues Project developers repeatedly indicated that underwriting standards for residential borrowers represent the greatest current risk to affordable housing development. Preliminary research shows that mortgage terms require down payments of 10 to 15 percent. Many developers cited the need to secure Federal Housing Administration approval, thus providing 97 percent loan-to-value financing. Project representatives indicated that FHA approval was contingent upon review of the deed covenants and in the case of the modular development (Stratton Flats) approval of building plans, including the unit foundation. Construction loans appear to be less of an issue than individual homebuyer loans. Representatives from the Valley Brook project indicated a willing market for construction loans. In addition, downward pressure on construction costs has also eased restrictions to borrowing. Additional Considerations Based on discussions with developers with active affordable housing projects in the region, there are a number of critical issues that warrant consideration, in addition to the issues of costs, revenues, and feasibility. These include: Competitive Market Position – The Town should understand the market position of the site relative to other projects within the county. Prospective home purchasers have options and can be expected to evaluate several other opportunities before selecting a home at this location. Documenting the market context and determining the competitive advantages provided by this site will shed light on the profiles of buyers likely to purchase here. The analysis will enable the Town to price its units based on the market and improve receptivity among the segment(s) most likely to consider it. 1/21/2014 Chamonix Master Plan 3 Product Alignment – Once the market position and price banding has been established, the Town should revisit the products designed for the site. Aligning the products with the buyer profiles is a critical step to creating a marketable project. It should be noted that most developers attempt to provide as broad a range of products as possible, thus generating interest from across the spectrum of prospective buyers. This approach is recommended for the Chamonix site as well; however, the Town should identify the most profitable and saleable product and ensure that the development program is concentrated around this unit type. Market Depth by AMI Level – In addition to evaluating the market supply, as noted in the first two bullets, the Town should consider an analysis of market demand. Using recent survey data, the Town could understand the depth of potential demand for units by income level. The data can be cross-tabulated by a range of factors to better understand depth of demand by type of resident. Financing Risk Mitigation – The current credit markets are substantially different from the recent past. Accordingly, developers must take action to ensure that financing is as available under the most flexible terms possible for future buyers. At this time, developers are seeking FHA approval to achieve this. The Town should understand the requirements of FHA and ensure that it is addressed from the start of 1/21/2014 Chamonix Master Plan 4 Appendix C 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 CHAMONIX PARCEL LAND USE PLAN August 2, 2005 R , P R M~ F i. J / yyet l' f n. j z,`.i n I IiM t 1 I M I t a~ 7 T t i ~ri~~~ x i R'. 0. Prepared by the Town of Vail Community Development Department, Davis Partnership Architects, and Michael Hazard Associates 1/21/2014 I. SUMMARY Davis Partnership, Michael Hazard Associates, and a neighborhood committee, along with the Town of Vail Community Development Department staff have completed an analysis on the Chamonix Parcel and developed this Land Use Plan from those efforts. The process has incorporated the information from the study conducted by the consultants with the information culled from the neighborhood citizens to create a simple and flexible Land Use Plan document and Future Land Use Map in the form of a color- coded "Site Plan" (attached). A series of meetings among the appointed review team, neighborhood committee, and Town Council were held between August and November, 2004, which led to the establishment of the following project objectives: Identify a location for the West Vail Fire Station on the Chamonix Parcel; Identify other potential land use opportunities for the Chamonix Parcel; and Provide a Land Use Site Plan which can be used as a guideline to establish detailed development plans for the Chamonix Parcel (attached). II. PROCEDURAL REQUIREMENTS Following the study phase of this planning document, staff determined that the land use designation of the subject property is harmonious with the goals of this plan and does not require an amendment to the Official Land Use Map for the Town of Vail. The official land use designation of the Chamonix Parcel is "Medium Density Residential" on the Official Land Use Map, a designation which has Fire Station listed as a desired use to have in these areas and is harmonious with the residential component in this Chamonix Parcel Land Use Plan document. The only specific use other than fire station on the Chamonix Parcel upon which consensus was reached during the study phase of this project is a medium density residential use indicated on the attached plan map as the "Development Zone" and highlighted in yellow (Attachment A). In order to establish a medium density residential use on the subject property, a change in zoning from the current Two-Family Primary/Secondary (P/S) Residential district to the more appropriate Medium Density Multiple Family (MDMF) Residential district is required. The fire station use itself requires the approval of a Conditional Use Permit by the Planning and Environmental Commission (PEC) in both the P/S and MDMF zone districts and therefore does not necessitate a change in zoning for it to be built. The passive recreational areas identified on the land use map do not require a zone change or modifying the parcel's land use designation on the Official Vail Land Use Map. III. SITE ANALYSIS Lot Size: 3.6 acres (156,816 sq ft) Zoning: Two Family Primary /Secondary (P/S) Residential Current Use: Undeveloped, vacant land Vegetation: Indigenous grasses and shrubbery, no trees 1/21/2014 Topography: Sloping from north to south at approximately 45% on the west side of the site and 10% on the east, with a fall of approximately 66 feet Constraints: The southeast corner of the site contains public service lines and transformers which must be relocated or protected during developme IV. USES Primary Use: Fire Station Secondary Uses: Medium Density Residential; Passive Outdoor Recreation; Open Space See the Land Use Plan Summary on the attached Site Plan map.) The primary use onsite and the catalyst for this plan's development is the fire station long contemplated for this town-owned site in West Vail. The fire station is to be located lower down on the site adjacent to the existing sites in the Heavy Service (HS) zone district which are compatible with this type of use. The medium density residential use is secondary to the fire station and is meant to provide a logical transition from the commercial service oriented uses on the frontage road to the residential character of the area above Chamonix Lane. The architecture of a medium density residential improvement on the subject property should employ the use of pitched roofs to ensure compatibility with the residential neighborhood above. The passive recreational and open spaces contemplated for the site will serve as buffers to mitigate any potential impacts to neighboring uses. V. PLAN OBJECTIVES a. Maintain a safe intersection at Chamonix Road and Chamonix Lane; b. Minimize traffic and noise impacts for the neighborhood; c. Define a location for the fire station and other uses; d. Preserve and build upon community characteristics of the neighborhood; e. Be mindful of site access and the impacts of traffic on the neighborhood; f. Explore financing options for the fire station; g. Study the feasibility ofdrive-through engine bays; h. Allow for a possible future expansion of the fire station up to 16,000 sq ft and from two to four engine bays; i. Allow for adequate parking and snow storage at the fire station; j. Create adequate outside staging for the fire trucks. VI. LAND USE PLAN MAP The attached site plan is intended for use as the Future Land Use Map for the Chamonix Parcel and contains a general Land Use Plan Summary which describes the four color-coded land use areas: Blue - Primary Use: "Town and Fire Station Uses", the proposed fire station building and any other Town of Vail amenities must go through the Design Review Application process and receive Design Review Board (DRB) approval. Yellow - Secondary Use: "Development Zone", intended for Medium Density Residential use and development not to exceed 18 dwelling units per acre in accordance with 2 1/21/2014 the Medium Density Multiple Family (MDMF) zone district and any proposed buildings must go through the Design Review Application Process and receive Design Review Board (DRB) approval. Orange - Accessory Use: "Recreational Space", upon which any physical improvements associated with passive outdoor recreation, would require Design Review Board DRB) approval. Green - Open Space Buffer: no physical improvements in this area. VII. ATTACHMENTS A. Future Land Use Map ("Site Plan") 1/21/2014 a nR' ~:~ L O I _ ~ O N r n Q O U C p O V U L- M f R tV .~ Q ~ L~ r 8 :~uawy~e~~y S~ ,~ ' t ~~~ ~ ~ ~'. h 1 ~ ~ ~~ tai ~ t o~ d ffi ti:.~ l d ' \ ' `~ S ' 4. * \* 3~~0 ~. _ <~. _ Od,J'~~ ~ mac. ,~-~ ~.` 4 r~ ~ ',F, ti ~ . tir ~ H ` ~ i t~', ''~''" ~ r ~: ~ e i ~ ~ 8 t ~ o t i r ~ ~ \` L~~ z~.' 4_ r` { ~ '.~' y~1~'4~IEti~~9.iC~4!, T,1t ~ ~i~y t~ `it ~ l ~i d ~ A S:d fii'~..b : ®~ ~ ~ 1 E ~t rya fj y__~ ~*`4I -~ l~ S~ I -_ J S r ~ ~~ b ~ ~-`~: .~, y 4 r lC~ fit, ~ `~ ~C~ ', ~ ., ;;C~ .+~,,~ 2~~ y f v t ~~/'~~ I~ ti~ ~ ~, l,~r ~F' L '.' ~~ f, It x a~ ~ '. n ~ ~ ~ ~ ~ L~ ~•r~ ~ ,. ...d.f~ ~- i ~ y,~ s r { g' ~~~ ~ z~,~ ~ ~.~ `, ~~ ,_:l :: ~, b"~' :~'~ rte`,' r:."~ ~*h~%'~„~~,'y~'a(',' t`~ j, A~'~,4 a ~ ,~~ > ~,' _ a , M fj , ~ .,- ~ O 1181- ~ ~ •'yR . ~. ~ . _ I ~ a - tf y '~'f kaf.~T$~ ~ }~ r ~.rT ~"`w` r ~ . 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Applicant: The Town of Vail, represented by Suzanne Silverthorn Planner: Matt Gennett I. DESCRIPTION OF THE REQUEST The applicant, The Town of Vail, represented by Suzanne Silverthorne, is requesting a second reading of Ordinance No. 17, Series of 2005, an ordinance amending the Vail Land Use Plan pursuant to Chapter VIII, Vail Land Use Plan, adding the Chamonix Parcel as Tract 43 in the "Inventory and Assessment of Town Owned Property" contained in Chapter VII, Community Facilities, and setting forth details in regard thereto (Attachment A). The purpose of Ordinance No. 17, Series of 2005, is to establish a land use plan for a fire station and other uses on the Chamonix Parcel, located at 2310 Chamonix Road/Tract D, Vail Das Schone Filing 1 (Attachment B, Vicinity Map). The staff and applicant are requesting that the Town Council approve Ordinance No. 17, Series of 2005, upon second reading, with the findings located in Section III of this memorandum. II. BACKGROUND On July 20, 2004, upon the recommendation of acouncil-citizen-staff review committee, the Vail Town Council authorized the Town Manager to hire the planning team of Davis Partnership/Michael Hazard Associates to facilitate a master land use plan centered on a fire station for the town-owned Chamonix property at Tract D, Vail Das Schone Filing 1/2310 Chamonix Road. On January 24, 2005, the Planning and Environmental Commission (PEC) held a work session to consider a proposed draft Land Use Plan for the Chamonix parcel, hear public input, and discuss the other possible uses on site which would be in addition to the primary fire station use. 1/21/2014 On June 27, 2005, the Planning and Environmental Commission unanimously approved a proposed land use plan produced by the collaborative efforts of the committee, staff, and Davis Partnership/Michael Hazard Associates to be used as a guide for future land uses on the Chamonix Parcel. On August 2, 2005, the Vail Town Council voted 6-1-0 (Donovan opposed) to approve Ordinance No. 17, Series of 2005, on first reading. III. STAFF RECOMMENDATION The Community Development Department recommends that the Vail Town Council approves Ordinance No. 17, Series of 2005, upon second reading, with the following findings: 1. .That the proposed amendments further the purpose and intent of the Vail Land Use Plan; 2. That the proposed amendments promote the health, safety, morals, and general welfare of the Town of Vail; and 3. That the proposed amendments promote the coordinated and harmonious development of the Town of Vail in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. IV. ATTACHMENTS A. Ordinance No. 17, Series of 2005 B. Vicinity Map C. Chapter VII -Community Facilities, 1 Inventory and Assessment of Town Owned Property, Coarse Screen of Sites, Vail Land Use Plan D. TABLE OF CONTENTS, Vail Land Use Plan E. Figure 5-W, Vail Land Use Plan, with proposed amendment F. Proposed APPENDIX F, Land Use Plan for the Chamonix Parcel 2 1/21/2014 Tract 43: Chamonix Parcel Lot Size: 3.6 acres (156,816 sq ft) Zoning: Two Family Primary /Secondary (P/S) Residential Current Use: Undeveloped, vacant land Vegetation: Indigenous grasses and shrubbery, no trees Topography: Sloping from north to south at approximately 45% on the west side of the site and 10% on the east, with a fall of approximately 66 feet Constraints: The southeast corner of the site contains public service lines and transformers which must be relocated or protected during development Site Plan Map Primary Use: Fire Station Secondary Uses: Medium Density Residential; Passive Outdoor Recreation; Open Space (See the attached Site Plan map.) Blue -Primary Use: "Town and Fire Station Uses", the proposed fire station building and any other Town of Vail amenities must go through the Design Review Application process and receive Design Review Board (DRB) approval. Yellow -Secondary Use: "Development Zone", intended for Medium Density Residential use and development not to exceed 18 dwelling units per acre in accordance with the Medium Density Multiple Family (MDMF) zone district and any proposed buildings must go through the Design Review Application Process and receive Design Review Board (DRB) approval. Orange - Accessory Use: "Recreational Space", upon which any physical improvements associated with passive outdoor recreation, would require Design Review Board (DRB) approval. Green -Open Space Buffer: no physical improvements in this area 1/21/2014 e c ~ 0~ Q / i ` L O OJ 0 1/21/2014 a 6 d f ~ ~ ~ L~J ~ N ~ ~ ~ ~ r g Z , --~- o- y Q m Q iv ~ ~ o,~ \ ~oooooa °' fA __~ O -, O~ O O y cCnO- O O Om ~ a~ Q~ o m o ~ o~ ~ r mvoN-~v v Z ~ ~ ~ ~ ~ ~ Q a fn m ~? ~ o ~, c wm i O ~ m o N f// d 3 O N ~. N ~, O Z ~ A ~ (D O N ~ ~ '-~. ~ n ~ ~~ N ~ fD ~ ~ O 3 cn.~ ,.: m o 0 C n N m ~ m ~ ~ `fit \ \ z fXD cD ~ N CD O ~ 7 ~ O - rte- ,~+. ~ fD fD ai ~_' ~ l ~ m 3m~mm m - ~ ~ , ~ ~\~ ~~~aoi~mc~~uO ~ ~, < ~,0 f11 ~ ~ ~ O an T- m m o ~ ~v O I D ~ _~ (D ._O. Q 3~ ~ Q N (DO ~ ~\~ ~ O ~ .-.r m ~ ,~ O N .n+ 0 0 0 j I' N y p p~ p c ~ ~ 3 ~ fSD a (D a O x 1 O ~ ~ fD c ~ 0 I i n ~ fn 7 ~ cD CQ tp I ADZ _ ~ 1i -Oo D ~ ~ ~ N `G (D i ~i m o ~ ~~yo' o ~ ~i Z ~ z Imo-oar g ~ ii ~ z n co~~?i a ~ ~ n m ^~ ail n X ~~ ~' m -+ ~ fl)~ v N ~ mi , m - m o. m m - _ i rD 1 oA ~ mwm o' x\ ~./ / t , m `~~ ! ~ I ~ . i ; I, ~, ,144\ . ~ I ~~ ~ T a a G I ,'4 I I ~~ ~J ~ V ~. ~ ~ x ~" in ~ ~ ?~ 1 ~ `~, m i ~ ~ D i i m ii ~ ~bii ' 1 ~n i ~i i o5i ~ O ~ OVA O ~ i ~Diini m ~ ~ m D'~ ~ ~1 -- r^mD rT'~ 3 9 TI ' ~ZZ ~ OI ~ ~ / 7C D 1 x ~ ' / _7 r Z col I 1 I I m I I , / - -- II I ~,I li 1 e ~ I Z~ 11 O -~'~- ~ mI O c ~ \ ``~ \ ^~` ~ O --- c q 0^~ R' n N ~ z y Roo ~ _ n° \ ° i / 200 .a~O `, m D \ , IV ~ ~ ~ __ 1 -- S ~~ ~ O L ~ A ~ t x m TOWN OF VAIL a m s o c CHAMONIX PROPERTY o COMMUNITY DEVELOPMENT r 75 SOUTH FRONTAGE ROAD z VAIL, COLORADO a e ~'€ m ~~~ 5 mombAga a 1/21/2014 I Johri Gulick - 10-5chamonixmemo.doc TO:Town Council FROM:Stan Zemler, Town Manager Suzanne Silverthorn, Project Facilitator DATE:October 5, 2004 SUBJECT:Chamonix Property Master Plan Update Page 1 BACKGROUND Since July 20, 2004, at the direction of the Vail Town Council, the planning team of Davis Partnership/Michael Hazard Associates has been working to facilitate a master land use plan for the town-owned Chamonix property at 2310 Chamonix Rd. The purpose of the land use plan is to determine the most appropriate location for a future fire station on the property as well as other potential uses that would maximize community benefit while complementing characteristics of the surrounding area. The 3.6 acre property was purchased by the Vail Town Council in 2002 for $2.6 million. At the time, a fire station, affordable housing and land banking were identified as possible future uses. The property is currently zoned primary/secondary residential. A citizen review team has been assembled to help manage the process. Members include Kim Ruotolo and Dick Cleveland from the Town Council, as well as Bob Armour, Bruce Norring and Tricia Hutchinson from the neighborhood, plus town staff. The planning steps, to date, have included the following: August 9, 2004 Kick-off meeting with West Vail residents to introduce project and to identify neighborhood interests and concerns. Five key themes were identified: o Preserve and build upon community characteristics o Pay particular attention to site access and traffic impacts o Minimize fire station impacts to the neighborhood o Explore financing options for fire station o Explore long-term needs and opportunities August 9 -September 26, 2004 Seven fire station site plan options were developed using the following criteria: ease of fire truck movement; safety for fire truck access to site and exit from site; extent of site utilized/site availability for future development; response to existing neighborhood uses and existing zoning; and response to existing site grades. Two of the 7 site plan options were expanded to include possible master plan scenarios representing high density residential and land banking (see attachments). The scenarios included a site section showing height relationships and the impacts on existing residential properties on Chamonix Lane. 1/21/2014 John Gulick - 10-5chamonixmemo.doc September 27, 2004 Update meeting held with West Vail residents to present fire station site plan options and the beginning stage of land use planning options for the remainder of the property. The purpose of the October 5 update to the Town Council is to provide a summary of the September 27 neighborhood meeting, narrow the fire station options to 2 or 3, and describe next steps. SUMMARY OF NEIGHBORHOOD MEETING, SEPTEMBER 27 Questions & Answers Q: What is the current zoning and how does that relate to height requirements for new development? A: The current zoning is Primary Secondary Residential. This current zoning limits the height to 33 feet for sloped roofs and 30 feet for flat roofs. It is recommended the site be rezoned to General Use to allow the fire station to be sited. The General Use zone is defined by the Planning and Environmental Commission for height limits. If the site was rezoned to high-density residential or public accommodation, the height would be limited to 48 feet. If the site were rezoned to medium residential, the height limit would be 36 feet above adjacent grade. Q: How many calls would the Fire Department respond to from West Vail? A: An average of 1 a day. Q: Where does Greater Eagle River Fire Protection District boundary begin? A: At mile marker 171 at Dowd Junction. Suggestions/Comments Development of the property could help block highway noise and provide a visual screen from the service stations and Wendy's. In addition to the fire station, consider a small park with picnic tables in lieu of residential use. Look at open space opportunities. By adding more residential, it will add to traffic in the neighborhood, which is already a concern. Maintain apedestrian/bike path through the property. Avoid a rental housing scenario. It would negatively impact single family homes. It would also compete with rental units already available by individuals who earn their living this way. There are no easy access solutions for the fire station. Chamonix Road and the corner of Chamonix Lane are both difficult, especially during the winter when roads are icy. Holiday Inn prefers drive-through for fire trucks to avoid use of back up beepers. Lighting is of concern. For sale units are preferred over rental units to avoid diluting the rental unit market in the neighborhood. Neighborhood Preferences Drive-through scenario for fire station bays is preferred. Option 7.0 for fire station location best minimizes impact to the neighborhood. Page 2 1/21/2014 John Gulick - 10-5chamonixmemo.doc f NEXT STEPS Following the Town Council's review of the fire station location options, the design team will carry forward the top three fire station location options. The design team will then prepare a series of master plan options for the entire site based on an evaluation of the neighborhood themes, zoning considerations, density ranges, public-private scenarios and land banking options. The design team will also produce a financial analysis of each option and a comprehensive evaluation of the opportunities and constraints. Schedule October 5, 2004 Review Fire Station location options with Town Council October 5th -October 29th Develop Master Plan Options November 1, 2004 Neighborhood Meeting to review Master Plan Options November 16, 2004 Present Master Plan Options to Vail Town Council for review and refinement Page 3 1/21/2014 i TOWN OF VAIL ` REQUEST F.OR PROPOSALS TOWN OF VAIL DEVELOPMENT OF MASTER LAND USE PLAN CHAMONIX PROPERTY VAIL DAS SCHONE, TRACT D, FILING 1 REQUESTED BY TOWN OF VAIL OFFICE OF THE TOWN MANAGER 75 S. FRONTAGE RD. VAIL, CO 81657 June 18, 2004 1/21/2014 Background In October 2002, the Town of Vail acquired a 3.6-acre parcel of land in West Vail for 2.6 million. The site, once known as the Hud Wirth property, and now called the Chamonix property, is located at 2310 Chamonix Road. The site is zoned primary/secondary residential and is the largest remaining town-owned developable parcel in Vail. In approving acquisition of the land, the Vail Town Council identified a "fire station, affordable housing and land-banking" as future public uses contemplated by the town. The next step is to master plan the property, which is the purpose of this RFP. The Town of Vail desires to hire the services of a planning team to work with the Town of Vail and its constituencies to develop a master plan for the Chamonix property with design work to be completed during 2004.The design team should be highly qualified to include expertise in the areas of land planning, site analysis and layout, architectural massing, space programming, construction cost estimating, and public process. Soils tests are being conducted simultaneously and will be provided to the planning team, as well as survey information and initial site planning studies. Purpose The purpose of developing a master plan for the Chamonix property is to accommodate the Town Council's desire to site a fire station on the property and to identify and evaluate additional uses that will maximize community benefit while complementing characteristics of the existing area. In addition to the fire station, the analysis should be inclusive to include the possibility of residential, commercial, mixed-use and additional public facilities and/or amenities. The plan should also address opportunities for public and private partnerships for development viability and efficiency. Phasing could also be a component of the plan. Scope of Work The planning team's submitted proposal should include a detailed breakdown of all general and specific tasks and products required to complete the work. The following is a brief outline of the desired minimum tasks requested with the anticipated products and services expected: 1. Identify and evaluate 2 to 3 site configurations for the West Vail Fire Station approximately 8,000 sq. ft.) using design specifications provided by the Town of Vail following a scoping meeting with representatives from the Vail Fire & Emergency Services Department. One of the configurations should maximize the ability for additional development on the remainder of the site. The designs should explore possible options for drive-in/drive-out accessibility by emergency vehicles. 2. Determine range of potential for additional development on the property. 3. Work in conjunction with the town staff to conduct a public scoping process, using no more than 2 neighborhood/community meetings, to present current work and identify community wants, needs, benefits, expectations, concerns, etc. 4. Develop project parameters using key themes identified during the public meetings. 5. Assist town staff in presenting project parameters to Vail Town Council for approval and/or modification. 6. Using project parameters, develop 3 alternatives for master planning entire site with associated visuals. One of the approaches, assuming it meets the project 2 1/21/2014 parameters, should include apublic-private partnership scenario that attempts to fund construction of the fire station with minimal to no public funding. 7. Work in conjunction with town staff to conduct a neighborhood meeting to present the 3 alternatives, collect and document public comments, and identify a preferred option. 8. Assist town staff in conducting a public hearing to present the 3 alternatives to Vail Town Council, plus a summary of comments and preferences from the neighborhood meeting. Receive direction from Town Council on a preferred alternative. 9. Develop a master plan document to include specific recommendations on zoning, and development parameters, such as maximum height, floor area, site coverage and circulation. In addition, the consultant should provide a preliminary cost estimate and proforma in cooperation with town staff for each alternative examined in master plan. 10. Coordinate hand-off to designated planner in Town of Vail Community Development Department who will assume project management for submittal to the Planning and Environmental Commission. Schedule The following is a general schedule for the project: June 18, 2004 Issuance of RFP Noon, July 9, 2004 Proposals due to Town of Vail July 19, 2004 Interviews July 22, 2004 Award of contract July 26, 2004 Begin work TBD Neighborhood meetings Aug. 17, 2004 Council consideration of project parameters TBD Neighborhood preferences meeting Oct. 19, 2004 Council selection of preferred alternative Oct. 26, 2004 Design work complete Submittal Requirements Respondents are requested to submit the following information: Cover Letter Identify team members and backgrounds State roles of each member and provide a team organization chart Highlight strengths of team Qualifications and Experience Describe team's expertise as it pertains to the delivery of a land use master plan Provide examples of previous experience with verification contact information Schedule Acknowledge ability to meet or exceed the schedule identified above and provide a specific timetable for each step identified in the scope of work Project Budget Provide hourly billing rate for each team member Provide a detailed fee proposal for the work broken down by tasks described above The team shall also provide any additional services deemed necessary for achieving the goal of this work 3 1/21/2014 Provide a detailed reimbursable schedule Submittal of Qualifications Address all questions and submittals (12 sets) to the attention of: Suzanne Silverthorn Community Information Office Town of Vail 75 S. Frontage Rd. Vail, CO 81657 Phone: (970) 479-2115 Fax: (970) 479-2451 Email: ssilver(~vail.net The deadline for submittals is 12 Noon July 9, 2004. Respondents should be available for interview on July 19, 2004. General Conditions Limitations and Award This RFP does not commit the Town of Vail to award or contract, nor to pay any costs incurred, in the preparation and submission of proposals in anticipation of a contract. The Town of Vail reserves the right to reject all or any submittal received as a result of this request, to negotiate with all qualified sources, or to cancel all or part of the RFP. After a priority listing of the final firms is established, the Town of Vail will negotiate a contract with the first priority firm. If negotiations cannot be successfully completed with the first priority firm, negotiations will be formally terminated and will be initiated with the second most qualified firm and, likewise, with the remaining firms. Selection Initial evaluation will be based upon the qualifications of the applicant. The Town of Vail reserves the right to not interview, and to make final consultant selection based upon the qualification statements and cost estimate. Equal Employment Opportunity The selected consultant team will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. Contact Phasing Proposed tasks within this RFP may be eliminated by the Town of Vail at any time due to the progression and sequencing of the scope of work. 4 1/21/2014 A C rn u a, ~ revA~ s' t,,~.,...y` r , 0,, fi j { l ~ tw --T~ _,-~-+ I E + j r j ~ ~_1 i i ~ ~~ 1 ~ ~~ t t,i i ti~ ~! i. fs'~n a~ ~ r C ~ - d C7 1 ST1 i 7 i o ,. , i .ti ~ .,_"^~, f1 cy. cn o~' m car cu ~ ~ti N ~~ ~ j ~. ;~ ~ a o ~ o ^.: fl. ca. 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CHAMt?NIX PRaPERTY CaMMUNITY DEVELOPMENT 75 SaUTH FRaNTAGE RaAD VAiI, CaLaRADa 1/21/2014 TIMING INDEPENDENT ~ cn cn cn cn cn cn OF ISSUES w 0- O w w 0 O O w w w w O z z>-~z zz~~~~ z NEAR OTHER ''00 wwww wwwwOw O RECREATION.. zz _ ~>->-~` ~r~~z} z HIGH TRAFFIC Ow w000 wwwwww w AREA z} >-zzz >->-~~~~ ~ RESTROOM zz zooo ooo°ooo 0 AVAILABLE zz zo~o~ ooNO~N o PARKING zz` z$~~ ~~~~~~00 000000 AVAILABLE zz Ozrn~° c°I°~NN°vco~l o DISTTO ~~ ~~~~ ~o~~~~ ~00 0000 00000 o U RESIDENTIAL' ' o o , N° 0 0 0 ~ ~ N ~~ M w O FOOT/BIKE cn cn cn v~ vi v~ cn cn cn cn cn cn Q Ow wwww wwwwww w aACCESSz~ >->-~>- >-~>-~~~ ~ ~ DISTANCE TO ~ ~o0 0000 00000_ `°o w ~ BUS STOP < rno ovoo~ ovc°~co~`r~°n ° Q ~z w O BUS ROUTE J J -- ` J J J J J J J J~ J ~ ~ Q0000000000-0 - O ZF- W ~ DISTTO z$ zzzz zooooo ~ Zww~ O°o OOOO Oooo~oN °o ~H~cnCOMMERCIALzMzzzzzc~~IC`''v~-~~ r~ ~Uw~ w~00 SIZE OF AREA v~ v~ cn cn v~ cn cn cn v~ ~ -, O Q z MIN10KSF ww wwww - OwwOwO -w ~wz~ z~>-z~z ~ Oz~~Oow z_w U Z n (~ O n u o Q ~ O o Z O ~ o N N ~ * N o H o ~ ~ ~ y-- 11,1 0 LLI W O ~ _ ~ ~ tL p ~ ~ ~ 00 p ~ ~ ~ ~ Z ~ Q OD ~' O ~ 2NCO OX-Z~~ciZoo¢~-°°zw?YU Yd~ ~Oz~w~~'a°-~wod~ Nacnv_~a~z r~~m J~wwNz~"~xOozzZw~~ OaQC~ Uj`LY~ JOO00W W Q UQ=Z W ~ZX~Qa~w~Z`~Op~U~Q C~Ua~ mC0'3>OC72~2WC9~aQQWwC9= YQ~O fn WO~W~On.U,WOOU~JLLW(n ~~ II fn I-ZQI-O=WUF-Z~O~Qli1-Z Q~~~oao=ao~?~-oaooww=~a'o a.o~ OaVoUt)mmcncnVOl~~~cJmV~ * * * 1/21/2014 1/21/2014 1/21/2014 1/21/2014 1/21/2014 SS S S S S S S S S S S W W W S S S S S S SS S S S S SS SS SS W W W MARTIN / MARTIN S S S S S S S S S S S S S S S S SS W W W S S S S SS SS W SS S S S S S S W SS S S S 1/21/2014 M EMORANDUM To: Nina Timm, Housing Coordinator, Town of Vail From: Andy Knudtsen and David Schwartz, Economic & Planning Systems Subject: Chamonix Market Update Date: February 28, 2011 Background The Town of Vail considers the Chamonix site in West Vail a component of a larger strategy to address affordable housing needs in the community. The site has the potential to hold approximately 58 dwelling units and would expand the inventory of affordable housing within the Town. The elected officials believe that additional housing will enhance the sense of community by providing homeownership opportunities to local residents and improving economic vitality by expanding the pool of employees available to local businesses. In 2008, Economic & Planning Systems (EPS) provided a market analysis of the conceptual development plans for the site. The report included an evaluation of the market trends, an assessment of the position the site holds within Eagle County market, and a review of the site’s competitive advantages and disadvantages. The market, however, has changed since that time. This memorandum provides an overview of updated market findings relevant to supply and demand conditions of the Eagle County market. Methodology EPS conducted its analysis by focusing on the broader market trends and focusing in on specific relevant market segments. The following methodology was used and outlines the content of this memorandum: 1/21/2014 Memorandum February 28, 2011 Chamonix Market Study Update Page 2 20908-DM-030111 • 3 Geographies: EPS identified areas within the County as having the following sales locations: o Upper Valley: Booth Creek, Cascade Village, East Vail, Highlands Meadows, Lionshead, Potato Patch, Sandstone Lionsridge, Spraddle Creek, Valley Ridge at Vail, Vail Golf Course, Vail Village, and West Vail. o Mid Valley: includes Arrowhead, Avon, Bachelor Gulch, Beaver Creek, Berry Creek Ranch, Cordillera, Eagle Vail, Edwards, Homestead, Lake Creek Valley, Minturn, Mountain Star, and Wildridge and Wildwood. o Lower Valley: includes Cotton Ranch, Eagle, and Gypsum. • 3 Time Periods: EPS identified periods of time over the past six years that represent distinct periods: o 2004-2008: During this period in Eagle County, the market continued its upswing in average sales prices and maintained its volume: o 2009: Generally, 2009 saw a major decrease in average sales prices and a contraction in volume of activity; o 2010: During this year, the market began to recover and stabilize. Average prices in parts of Eagle County climbed again, and volume increased over 2009, but did not return to the volume before 2008. • 3 Price Bands: Within the geographies and periods of time, three price bands are relevant to understanding where the market is today: o Under $438,000: was identified as the conforming loan limit of approximately $418,000 plus an estimated five percent that a buyer would have available for a down payment; o Between $438,000 and $600,000: was identified as the next band of price points, which identifies an upper threshold for other local buyer products; and o Sales above $600,000: was identified as a separate price band to isolate products purchased by second-homeowners or out-of-state buyers. Demand Conditions Employment and wage information comes from the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA). The BLS data identify trends and conditions of wage and salary positions through the second quarter of 2010. Data from the BEA identify counts of both wage and salary jobs and sole proprietors through 2008. Due to the comprehensive nature of BEA data, the lag time is greater. EPS has used the most comprehensive data available from these sources for this report. 1/21/2014 Memorandum February 28, 2011 Chamonix Market Study Update Page 3 20908-DM-030111 Employment & Wages Major losses in employment have been sustained nationally, regionally, and locally. In resort economies, such as Vail’s, significant losses have occurred in the construction industry. • Total wage and salary employment in Eagle County as of 2nd Quarter 2010 is 28,000 jobs. This is a 13 percent contraction from its peak in 2008. In 2008, as illustrated by Figure 1, wage and salary positions totaled more than 32,000 jobs. • While construction has lost 2,500 jobs since 2007, approximately 2,500 jobs were gained since 2000 netting out the losses. Although employment levels have returned to their 2000 level, the losses of the construction industry have been netted out by the gains in other industries. Industries with the largest gains since 2000 were: o Health Care and Social Assistance industry added 600 jobs; o Arts, Entertainment, and Recreation added 700 jobs; and o Accommodation and Food Services, though it sustained losses off its 2008 peak, added nearly 700 positions. • From 2000 to 2008, while wage and salary employment increased at an annual rate of 1.7 percent, the number of sole proprietors increased at a rate of 4.4 percent. In Eagle County, sole proprietors account for approximately 23 percent of the total workforce, as illustrated in Figure 2. In 2000, there were approximately 8,700 proprietors, and by 2008, the total had increased to more than 12,200, an increase of more than 40 percent. o Though data will not be available for nearly two years, it is likely that the number of proprietors also contracted from 2008 to 2010. Assuming a uniform 13 percent contraction, the estimated 2010 total of proprietors would still be 23 percent higher than it was in 2000. • Adjusted for inflation, average county wages have fallen 12 percent since 2008 and are 1.7 percent lower than real wages were in 2000.Similar to the wage and salary job trends; overall wages for the County have contracted since 2008 as illustrated by Figure 1. • Future economic trends must be tracked closely. While some data show that the economic recovery has been established in some markets across the country, the trends are not evident in Eagle County at this time. EPS research conducted for higher-priced inventory shows that a correction occurred in mid-2010. This correction may signify the return of higher income buyers and part-time residents, and may signify a return to a normalized Eagle County economy. The Town of Vail should track a range of metrics and measure the rate of recovery and the degree to which the market indicators move into historic ranges, when performance was strong. If the market does not continue to solidify, the Town is advised to proceed with this development slowly and with clearly identified exit strategies. 1/21/2014 Memorandum February 28, 2011 Chamonix Market Study Update Page 4 20908-DM-030111 Market Conditions Housing market conditions and trend data come from the regional Multiple Listings Service (MLS). Data have been analyzed from the first quarter 2004 through the fourth quarter 2010. Sales Volume As described previously, the construction industry contracted approximately 50 percent from its peak in 2007. Similarly, the volume of housing sales contracted 48 percent after 2007, as illustrated in Figure 3 and in Table 1. • Sales volume in 2010 was 757, or 54 percent of average annual volume from 2004 to 2008. From 2004 to 2008, average annual activity was 1,412 units. In 2009, volume decreased more than 64 percent to 504 units sold, or 36 percent of previous levels. In 2010, sales volumes have increased most in the Upper Valley, followed by the Mid Valley and Lower Valley respectively. o In 2010, there were 243 sales in the Upper Valley. A majority of the increase in activity was due to increased activity at prices above $600,000. The volume for units priced below $438,000 was 37 units. o In 2010, there were 354 sales in the Mid Valley. A large increase in volume came from the sale of units priced below $438,000. Sales volume at this price point was 93 units. o In 2010, there were 160 sales in the Lower Valley. Most of the activity is due to units priced below $438,000. Volume at this price point was 107 units. Price Trends Sales price trends in Eagle County have fluctuated widely in the past few years. On a per- square-foot basis, average prices peaked in late 2008 in each of the geographies, as illustrated by Figure 4. • Average prices in the Upper Valley are currently $900/sqft. This is a contraction of 34 percent from their 1stquarter 2009 peak to the 1stquarter 2010. Average prices (of attached and detached product) in the 1stquarter 2009 had increased to $1,100/sqft, or 155 percent over their 1st quarter 2004 average of $430/sqft. In 2010, Upper Valley sales have increased by 23 percent above the 1st quarter 2010. • Average prices in the Mid Valley are currently $430/sqft. This is a contraction of 25 percent from their 3rd quarter 2008 peak. In the 3rd quarter 2008, prices had escalated to $574/sqft or nearly 60 percent above the 1st quarter 2004 average of $365/sqft. • Average prices in the Lower Valley are currently $190/sqft. This is a contraction of 26 percent from their 2nd quarter 2008 peak. In the 2nd quarter 2008, average prices had increased 46 percent to $255/sqft over the average of $175/sqft in 2004. 1/21/2014 Memorandum February 28, 2011 Chamonix Market Study Update Page 5 20908-DM-030111 Units Priced Under $438,000 Using the conforming loan limit of $417,500 and assuming a five-percent downpayment, EPS assessed the market for units priced at $438,000 or lower, as shown in Figure 5. • Sales volume in 2010 was 237, or 31 percent of the total market. Today’s volume is 54 percent of the average annual volume at this price point for the period 2004 to 2008. During the contraction in 2009, volume dropped to 154 units. o In the Upper Valley, there were 37 sales in 2010 at this price point. This is a decrease from the average 70 units sold per year from 2004 to 2008, but an increase over the 27 units sold during 2009. o In the Mid Valley, there were 93 sales in 2010 at this price point. This is a decrease from the average 199 units sold per year from 2004 to 2008, but an increase over the 51 units sold during 2009. o In the Lower Valley, there were 107 sales in 2010 at this price point. This is a decrease from the average 203 units sold per year from 2004 to 2008, but an increase in the 76 units sold during 2009. • Sales prices per square-foot in 2010 averaged $237 for all geographies at this price point. From 2004 to 2008, average prices per square foot were approximately $262 at this price point. o In the Upper Valley, prices average $385 per square-foot in 2010.This is a decrease from the average prices in previous years. From 2004 to 2008, prices averaged $393, and in 2009, prices averaged $478 on thin volume. o In the Mid Valley, prices average $266 per square-foot in 2010. This is a decrease from the average of $281 from 2004 to 2008 and a decrease from 2009, which was $292 per square-foot. o In the Lower Valley, prices average $186 per square-foot in 2010.This is a decrease from average prices from 2004 to 2008, which were $198 and $203 in 2009. Conclusions • Absorption. EPS believes the most comparable set of sales reflect those in the lowest price point, located in the mid valley. If the Town can capture 10 percent of this sales volume (93 sales per year), it can sell approximately 9 units annually, based on the performance of this submarket in 2010. If the Town can capture 5 percent of all Eagle County sales at this price point and below (237 sales), annual sales rates translate to approximately 12 units. These capture rates will drop when the Town performs a more refined segmentation analysis and narrows the proposed price banding. As the Town refines its development program and proposed pricing, it should further segment these sales records to understand pricing tolerances of the market and the segment which will receive the greatest demand. • Price Points. Recent sales at this price point indicate that most occur in the Mid Valley between $200/sqft and $350/sqft. This accounts for all ranges of products and all ages of structures. The data indicate that these units are relatively old (built in the early 1990’s) and with an average size of approximately 1,200 square feet. It is recognized that the Town 1/21/2014 Memorandum February 28, 2011 Chamonix Market Study Update Page 6 20908-DM-030111 could likely build larger product and the corresponding price per square foot will drop. EPS has established a price and size ratio, as depicted in Figure 7, which provides the parameters for pricing relative to square footage. • Competitive Position. Locations up valley will command a premium toward the higher end of this range, as will new product. Both will make the project compelling. Although a deed restriction will negatively impact the potential price point, it will not outweigh the premiums for location and new structures. 1/21/2014 Fi g u r e 1 Wa g e & S a l a r y E m p l o y m e n t Va i l C h a m o n i x M a r k e t S t u d y U p d a t e Fi g u r e 2 To t a l E m p l o y m e n t 1/21/2014 Me m o r a n d u m February 28, 2011 Ch a m o n i x M a r k e t S t u d y U p d a t e Page 8 20908-DM-030111 Va i l C h a m o n i x M a r k e t S t u d y U p d a t e 1/21/2014 Me m o r a n d u m February 28, 2011 Ch a m o n i x M a r k e t S t u d y U p d a t e Page 9 20908-DM-030111 Fi g u r e 3 To t a l S a l e s V o l u m e b y P r i c e C a t e g o r y Va i l C h a m o n i x M a r k e t S t u d y U p d a t e 1/21/2014 Me m o r a n d u m February 28, 2011 Ch a m o n i x M a r k e t S t u d y U p d a t e Page 10 20908-DM-030111 Ta b l e 1 Sa l e s S t a t i s t i c s b y T i m e P e r i o d Va i l C h a m o n i x M a r k e t S t u d y U p d a t e Up s w i n g : C o n t r a c t i o n : S t a b i l i z a t i o n : U p s w i n g : C o n t r a c t i on : S t a b i l i z a t i o n : U p s w i n g : C o n t r a c t i o n : S t a b i l i z a t i o n : 20 0 4 t o 2 0 0 8 2 0 0 9 2 0 1 0 2 0 0 4 t o 2 0 0 8 2 0 0 9 2 0 1 0 2 0 0 4 t o 2 0 0 8 2 0 0 9 2 0 1 0 Up p e r V a l l e y Le s s t h a n $ 4 3 8 , 0 0 0 $ 3 9 3 $ 4 7 8 $ 3 8 5 7 0 2 7 3 7 8 5 6 8 3 2 9 5 3 $4 3 8 , 0 0 0 t o $ 6 0 0 , 0 0 0 $ 4 8 0 $ 4 5 8 $ 4 2 3 5 1 1 3 2 3 1 , 2 0 8 1 , 2 3 8 1 , 3 56 Gr e a t e r t h a n $ 6 0 0 , 0 0 0 $ 9 3 3 $8 2 6 $1 , 0 6 7 18 7 86 18 3 2, 4 6 5 2,5412,610 Su b t o t a l $ 7 3 5 $ 7 1 4 $ 9 0 2 3 0 8 1 2 6 2 4 3 1 , 8 8 9 2 , 0 4 0 2 , 2 3 9 -- - 97 % 1 2 3 % -- - 41 % 7 9 % -- - 108%119% Mi d V a l l e y Le s s t h a n $ 4 3 8 , 0 0 0 $ 2 8 1 $ 2 9 2 $ 2 6 6 1 9 9 5 1 9 3 1 , 1 8 3 1 , 2 2 9 1 , 2 0 8 $4 3 8 , 0 0 0 t o $ 6 0 0 , 0 0 0 $ 3 6 1 $ 3 0 4 $ 2 9 7 1 1 6 2 7 4 2 1 , 6 6 8 1 , 8 1 4 2 , 005 Gr e a t e r t h a n $ 6 0 0 , 0 0 0 $ 5 6 6 $5 0 4 $5 1 6 44 7 18 1 21 9 3, 4 3 6 3,8173,837 Su b t o t a l $ 4 6 1 $ 4 4 1 $ 4 2 4 7 6 2 2 5 9 3 5 4 2 , 5 7 9 3 , 0 9 8 2 , 9 2 9 -- - 96 % 9 2 % -- - 34 % 4 6 % -- - 120%114% Lo w e r V a l l e y Le s s t h a n $ 4 3 8 , 0 0 0 $ 1 9 8 $ 2 0 3 $ 1 6 0 2 0 3 7 6 1 0 7 1 , 6 0 8 1 , 6 9 7 1 , 9 47 $4 3 8 , 0 0 0 t o $ 6 0 0 , 0 0 0 $ 2 2 5 $ 1 8 0 $ 1 7 8 7 7 1 9 2 0 2 , 4 0 2 3 , 0 3 4 2 , 9 47 Gr e a t e r t h a n $ 6 0 0 , 0 0 0 $ 2 6 2 $2 4 9 $2 7 6 62 24 33 3, 4 1 4 4,0954,644 Su b t o t a l $ 2 1 6 $ 2 0 9 $ 1 8 6 3 4 2 1 1 9 1 6 0 2 , 1 1 2 2 , 3 9 4 2 , 6 2 8 a s % o f 2 0 0 4 - 2 0 0 8 - - - 97 % 8 6 % -- - 35 % 4 7 % -- - 113%124% So u r c e : E a g l e C o u n t y M L S ; E c o n o m i c & P l a n n i n g S y s t e ms H: \ 2 0 9 0 8 - V a i l C h a m o n i x M a r k e t U p d a t e \ D a t a \ [ 2 0 9 0 8 - M L S- 2 0 1 1 . x l s x ] T a b l e 2 Av e r a g e P r i c e s / S q F t A v e r a g e A n n u a l A b s o r p t i o n A v e r a ge Unit Sizes 1/21/2014 Me m o r a n d u m February 28, 2011 Ch a m o n i x M a r k e t S t u d y U p d a t e Page 11 20908-DM-030111 Fi g u r e 4 Ov e r a l l A v e r a g e P r i c e s p e r S q u a r e - F o o t b y G e o g r a p h y Va i l C h a m o n i x M a r k e t S t u d y U p d a t e 1/21/2014 Me m o r a n d u m February 28, 2011 Ch a m o n i x M a r k e t S t u d y U p d a t e Page 12 20908-DM-030111 Fi g u r e 5 Pr i c e s p e r S q u a r e F o o t b y G e o g r a p h y u n d e r $ 4 3 8 , 0 0 0 Va i l C h a m o n i x M a r k e t S t u d y U p d a t e 1/21/2014 Me m o r a n d u m February 28, 2011 Ch a m o n i x M a r k e t S t u d y U p d a t e Page 13 20908-DM-030111 Fi g u r e 6 Vo l u m e b y U n i t T y p e b y G e o g r a p h y u n d e r $ 4 3 8 , 0 0 0 Va i l C h a m o n i x M a r k e t S t u d y U p d a t e 1/21/2014 Me m o r a n d u m February 28, 2011 Ch a m o n i x M a r k e t S t u d y U p d a t e Page 14 20908-DM-030111 Fi g u r e 7 Un i t s S o l d u n d e r $ 4 3 8 , 0 0 0 b y P r i c e / S q F t a n d S i z e Va i l C h a m o n i x M a r k e t S t u d y U p d a t e 1/21/2014 Employee Housing Strategic Plan “To ensure there is deed restricted housing for at least 30% of Vail’s workforce within the Town of Vail” September 2, 2008 Adopted by Resolution No. 20, Series of 2008 1/21/2014 2 Employee Housing Strategic Plan In acknowledgement of the commitment to ensure deed-restricted housing options for at least 30% of Vail’s workforce within the Town of Vail Vail Town Council Vail Local Housing Authority Dick Cleveland, Mayor Mark Ristow, Chairman Andy Daly, Mayor Pro-Tem Sally Jackle Kevin Foley Steve Lindstrom Mark Gordon Ethan Moore Farrow Hitt Kim Newbury Kim Newbury Margaret Rogers Planning and Environmental Commission Bill Pierce, Chair Rollie Kjesbo, Co- Chair Michael Kurz Sarah Paladino Scott Proper Susie Tjossem David Viele Vail Economic Advisory Council Local Employers Mark Gordon Vail Resorts, Inc. Dick Cleveland Town of Vail Alan Koslof Vail Valley Medical Center Bob Boselli Tivoli Lodge Greg Moffet Marriott Resort Rick Scapello Vail Cascade Hotel and Spa Robin Litt Vail Plaza Hotel Sally Hanlon Troy’s Ski Shop Bill Jensen Vail Plaza Hotel Rob Levine Sonnenalp Hotel M. Joseph McHugh Sweet Basil Pam Stenmark Mark Cervantes Matt Morgan Brian Nolan RRC Associates, Inc Steve Kauffman Chris Cares Tori Franks Rayla Kundolf Bob McNicols 1/21/2014 3 Employee Housing Strategic Plan Table of Contents Purpose 5 Time Frame 6 Threats, Weaknesses, Strengths, & Opportunities 6 Objectives 9 Policy Statements 11 Action Steps 12 Implementation Matrix 19 Roles and Responsibilities 21 Appendix 23 a. Glossary b. Resolution Adopting the Employee Housing Strategic Plan c. Process Timeline d. Existing “Conditions” Survey Results (to be added upon completion) 1/21/2014 4 Employee Housing Strategic Plan 1/21/2014 5 Employee Housing Strategic Plan TOWN OF VAIL EMPLOYEE HOUSING STRATEGIC PLAN BACKGROUND In 2006, through the Vail 20/20 Focus on the Future process the community established a housing goal. It is as follows: “The Town of Vail recognizes the need for housing as infrastructure that promotes community, reduces transit needs and keeps more employees living in the town, and will provide enough deed-restricted housing for at least 30 percent of the workforce through policies, regulations and publicly initiated development.” Based upon the community’s work, the Vail Town Council has confirmed the Town of Vail recognizes deed restricted employee housing as basic infrastructure. This type of housing allows employees to live within the town, promoting community, and improving the quality of our local workforce, thereby supporting the local economy, and reducing regional transit needs. The Employee Housing Strategic Plan (EHSP) seeks to meet the expectations established by the community and confirmed by the Town Council and provide enough deed-restricted housing for at least 30 percent of the community’s workforce to live in the Town of Vail through a variety of policies, regulations and publicly initiated development projects. PURPOSE The EHSP is a decision-making guide for the implementation of employee occupied housing programs. The EHSP documents the Town’s current approaches to ensuring employee housing. It identifies the goal, outlines methods and defines action steps the Town will pursue. In addition, the Appendices provide background information on Town housing definitions, policies, and initiatives. This information is provided as an additional resource. The EHSP also recognizes and affirms the importance of Vail constantly serving as a regional partner in the provision of employee housing. 1/21/2014 6 Employee Housing Strategic Plan The EHSP is meant to lead the actions of Staff, the Vail Local Housing Authority and the Vail Town Council in future decisions regarding funding and development of employee housing in Vail. PLANNING TIMEFRAME The EHSP is based on a five-to-ten year planning horizon; it looks well into the future anticipating the needs for employee housing over time. The EHSP also contains identified “action steps” targeted for a one to three year period. These action steps will need to be evaluated annually and it is anticipated that they will be updated at least every three years as market conditions change. THREATS, WEAKNESSES, STRENGTHS & OPPORTUNITIES It is important to recognize and plan for the threats, weaknesses, strengths and opportunities that exist in the Town of Vail as well acknowledge the broader trends that impact Vail. Threats Increasing Competition For Employees o Within the next ten-years: 9 Conservative estimates predict 2,000 new jobs will be created by development and redevelopment within the Town of Vail - The majority of these jobs will be service sector 9 It is estimated that at least 7,500 new jobs will be created between Eagle Vail and Gypsum in the next ten years - The majority of the these jobs will be service sector 9 It is estimated the Ginn Development will add 1,000 new jobs 9 Lake County and Garfield County are both experiencing job growth - The oil and gas industry and mining generally pay substantially more than the service jobs being created in Eagle County 9 State of Colorado predicts overall job growth of 23% (DOLA) 1/21/2014 7 Employee Housing Strategic Plan Real Estate Trends o Real estate in the Town of Vail is expensive as compared to the rest of the region as well as compared to the national market o The conversion of locally occupied housing to second homes o The free market focuses on the housing desires of second homeowners o Increasing cost of construction o Local real estate values continue to trend upward o The gap between what locally earned wages can afford and free market housing prices continues to increase Unique Geographic Constraints o Vail Pass on the East o Dowd Junction on the West o Limited undeveloped land within the Town of Vail o Surrounded on the north and south by National Forest and Bureau of Land Management lands o Farthest employment center from the Eagle County population base Cost of Commuting o The cost of gas continues to increase o Public transportation does not provide a viable alternative to all communities o The availability and cost of parking is prohibitive Weaknesses Politics o Historical lack of political will for developing new employee housing o Previously, no clear policy direction for the provision of employee housing o Lack of Town owned land zoned for employee housing o There is not dedicated funding for employee housing o At the beginning, failure to plan for the housing needs of Vail employees 1/21/2014 8 Employee Housing Strategic Plan Real Estate Market o Lack of free market homes affordable to local employees o Potential home buyers get less “bang for the buck” in Vail as compared to the region o Deed restricted housing developed does not provide a full spectrum of housing types (i.e., single family homes and seasonal rental units) Lack of permanent employees hired by local businesses o The jobs being generated by redevelopment are predominately lower paying seasonal service jobs o Added challenge to establishing a diverse community Strengths Community support for creating new employee housing Clarity around the Town’s adopted housing goal Regulatory requirements o Commercial Linkage o Inclusionary Zoning Vacant land owned by the Town Strong local financial conditions o Bonding capacity o Strong local tax base o Potential to invest in employee housing Regular private reinvestment in development Expanding partnership opportunities with local businesses and governments Current deed restricted housing stock The “Vail” brand Opportunities Town Initiated o Employee Housing Strategic Plan o Town owns significant vacant land o Rezoning of Town owned vacant land o Land Use Plan amendments o Annexation of land adjacent to the Town 1/21/2014 9 Employee Housing Strategic Plan o Ability to reallocate existing revenue o Bonding capacity o Ability to go to the voters for a dedicated funding source o Partnerships with local employers o Public-Private partnerships for development o Potential United States Forest Service Land Swaps Regional Opportunities o Other local governments are addressing the housing need as well o Significant vacant land o Partnerships with local employers o Public-Private partnerships for development o “The Valley Home Source” Current stagnation in real estate values OBJECTIVES A. Provide housing to address needs generated by new development or redevelopment. It is documented and understood that new development will require additional employees and a goal of the EHSP is to provide for that housing. This goal is also referred to as “ Keep Up” in the EHSP; going forward the Town will attempt to address the increase in demand from new employees by requiring deed-restricted housing as a condition of new development or redevelopment. The Town will encourage developers to provide a range of housing choices for the entire spectrum of jobs that are being created by the new development. B. Respond to the existing affordable housing shortfall by pursuing a number of identified programs and development opportunities. This goal is also referred to as “Catch Up” in the EHSP; it describes efforts to address deficiencies in the available housing inventory that have arisen over a period of years. 1/21/2014 10 Employee Housing Strategic Plan C. Call for any deed-restricted housing that is required as a condition of development to be constructed at the time new development occurs. By dispersing year-round housing multiple objectives are met: neighborhoods are occupied throughout the year enhancing security and encouraging activity. Economies are achieved by having developers integrate deed-restricted housing at the time they are constructing other uses, and construction of new residences occurs at the time the demand is first triggered. D. Creation and maintenance of housing in Vail for emergency and key service workers. In Vail, where weather and the regional road system create periodic strains, this is especially important. The Town will also work with other businesses that provide services essential to municipal operations to encourage they have critical employees living within the Town of Vail. The Town will offer partnership opportunities to these types of employers. E. Actively address affordable housing for Vail workers to ensure that the community remains competitive in economic terms. With the number of Down-Valley jobs continuing to increase, there will be competition for workers; Vail will work to provide appropriate housing to ensure that the Town remains attractive in the regional job market. F. Increase and maintain deed-restricted housing within the Town to encourage the efficient use of resources by placing employees closer to their place of work. It is understood there is a reduced need for personal automobiles and reduced transit costs when home and work are in close proximity to one another. Also, there may be changes in workforce demographics that result in opportunities to reduce parking associated with affordable housing in selected locations. To the extent these opportunities can be realized, without negative impacts on the overall community, they will be explored. 1/21/2014 11 Employee Housing Strategic Plan G. Planning for new employee housing will take jobs and wages into account. It is recognized that wages associated with a particular job influence housing demand. In both catch-up and keep-up programs the Town will work toward providing a range of housing types at price points appropriate to the varying incomes of workers in Vail. It is recognized the free market provides limited opportunity for even the highest wage earners to live and work in Town and it is necessary to have a full range of employees in the community. Diverse housing opportunities for the broadest range of employees will enhance the community. H. Provide and plan for housing along with local and regional public transportation. The EHSP recognizes that these functions are intertwined and where deed-restricted housing exists, there will be a demand for transportation services. It is the goal of the Town to minimize overall transportation costs by housing employees in proximity to their jobs, and to also anticipate the projected costs of transportation (due to fuel and other scarce resources) in the provision of deed-restricted housing elsewhere in the region. POLICY STATEMENTS The Town of Vail will pursue three broadly described methods to achieve the Town’s housing goal. The Town will Impose Regulatory Requirements Development will be required to address a portion of its housing demand within the Town of Vail; and New development and redevelopment will be required to address a portion of its housing demand at the development site. Development and Acquisition Initiated by the Town To address employee housing needs beyond the regulatory requirements for new development; and To respond to the desire to promote a more diverse and vibrant local community. 1/21/2014 12 Employee Housing Strategic Plan Form Regional Partnerships These efforts will address employee housing needs beyond the regulatory requirements by actively seeking partnerships, including: i. Public / Private, and ii. Multi Jurisdictional. These broad methods are further addressed in the Action Steps that are described in the following section. ACTION STEPS The Town will continue to use tools already in place including: Regulatory Requirements: The “Linkage” or Commercial Jobs Generation Program The Town will review the current linkage program to evaluate whether it has been meeting the objectives of ensuring that new housing is being created to house a portion of the employee demand that is being generated by new commercial uses in the Town. At this time, no immediate changes in the overall requirements of the program are anticipated. However, the current requirement for new commercial development to provide employee housing for at least twenty percent (20%) of the employees generated may be reevaluated and the required percentage may be changed as a result of the review, the areas of impact may be modified, and the formulas for calculating job generation rates may be further refined. Additionally, an updated Rational Nexus will need to be completed on a periodic schedule. The Linkage Program provides housing to “keep up” with new demand as it is generated. Achieves Objectives A, C, E, F, and G. The “Inclusionary” Program The Town does not anticipate major changes to the Inclusionary Housing program at this time. However, the current requirement to restrict 10 percent (10%) of new residential square footage in high density areas to be employee housing with deed restrictions, may be reevaluated and the required percentage may be changed as a result of the evaluation, and/or 1/21/2014 13 Employee Housing Strategic Plan the areas (zone districts) of impact may be modified. The Inclusionary Program provides housing to “keep up” with new demand as it is generated. Achieves Objectives A, C, E, F, and G. Housing District Zoning Designation The Town currently has a “Housing District” zoning designation. As an action step to implement the Housing Plan, the Town will review the requirements of this district to ensure that it is fully meeting its intended purposes. That review will address the procedural requirements for the Housing District, land use provisions including density, parking and design standards, and provisions for density bonuses. The evaluation of the Housing District will ensure the Housing District provides optimal employee housing development. Achieves Objectives B, D, E, F, and G. Town Initiatives: Buy-Downs to Generate Deed-restricted Units The Town will actively pursue purchase of attractively priced units for imposition of an appreciation capped deed restriction, and subsequent resale. This technique for increasing the supply of permanently affordable housing is known as a “buy down.” It is recognized that this program will be highly market dependent, with limited applicability when the local residential market is surging, and becoming more attractive at times when there is a plateauing of prices. The Town will need to increase the allocation of funds to underwrite the costs associated with purchasing, deed restricting and reselling for-sale units. This is an opportunity to provide diverse housing, to serve the full spectrum of employees. It is important to update the parameters by which buy down units are considered so each buy down unit meets the established goals. Further, it is expected that there will be active involvement by the Housing Authority in overseeing this program. The Buy-Downs program provides housing to “catch up” with existing deficiencies and reduce market leakage. Achieves Objectives B, D, E, F, and G. 1/21/2014 14 Employee Housing Strategic Plan Employee Housing Units Exchange Program The Town will conduct a review of the “dispersed housing units” that have been created under the density bonus provisions allowed by Town Code since 1982. It is estimated that 123 units were created under the existing program, typically ranging in size from 300 to 500 square feet. It is believed that many of these units are not being used to house employees as anticipated by the program. Although these units are covered by various types of deed restrictions, the requirements are not uniform and in many cases are not meeting the objective of providing long-term dispersed employee housing. The Town will evaluate the current program and will consider a “deed restriction exchange program” as a part of this overall effort. The program would likely permit, at the initiation of the landowner, the exchange of small rental units for a larger for-sale, price appreciation capped employee housing unit. Guidelines for the program will be developed. It is expected that these standards will address recommended size of units, location, homeowner’s fees and other aspects of the program. Such a program has been recently tried in Vail. It is believed that other dispersed employee units, not currently in use, could be leveraged into permanently restricted units by using this technique; it could represent an important element of this overall plan. The Units Exchange Program is to increase the quality and the total quantity of employee housing within the Town of Vail. Achieves Objectives B, E, F, and G. Incentive Zoning and Density Bonuses The Town will consider workforce housing objectives in all review processes that permit discretion. This means that the Town will work actively with developers as a part of the Housing District, Special Development District review processes and requested changes in zoning to not only meet the requirements of existing code, but to look for opportunities to go beyond code requirements to encourage additional workforce housing to be created. As a part of these review processes the Town will work actively with developers to create incentives to develop housing that exceeds the minimal requirements contained in the code. Additional density may be granted in selected locations through the appropriate review processes, and fee waivers and subsidies may be considered. The Incentives Zoning and Density Bonuses help Vail to 1/21/2014 15 Employee Housing Strategic Plan “catch up” with existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, and G. Review Rezoning and Vacant Land Opportunities The Town will regularly review existing codes and the vacant land inventory to identify opportunities to modify current programs that further support the goals of this Plan. The Review of Rezonings and Vacant Land provides “catch up” opportunities to address existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, and G. Town Participation in Developments Providing Deed-Restricted Housing The Town is prepared to actively participate in, and will seek partners to further the development of deed-restricted housing. Vail Commons, Middle Creek, Buzzard Park and Miller Ranch (located near Edwards in Eagle County) are four relatively large developments that have been completed through active Town participation. The existing developments serve households at different income levels. This has been, and will continue to be an objective of the Town, to serve the broad spectrum of need within the community rather than focusing on just a narrow category of income or household type. The Town participation provides “catch up” opportunities to address existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, G, and H. Explore Options for a Dedicated Funding Source for Employee Housing Initiatives The Town will explore options for a dedicated funding source to ensure adequate and ongoing resources for employee housing initiatives. It is recognized the Town will play an integral role in the creation of employee housing and dedicated dollars will aid in these efforts. The Town may pursue any of the following funding alternatives: a dedicated sales tax increase, a dedicated mill levy increase, dedication of the Real Estate Transfer Tax or any other funding source that may be identified. A 1/21/2014 16 Employee Housing Strategic Plan dedicated funding source would provide “catch up” housing opportunities for Vail workers. Achieves Objectives B, D, E, F, G, and H. Create an Existing Residential Conditions Base Line in the Town of Vail Conduct a comprehensive study of current units. Identify the type of units that exist (i.e. studio, one-bedroom, etc.), each unit’s current use (i.e. employee occupied, short-term rental, etc.), and the ownership of the unit (i.e. owner-occupied, tenant occupied, etc.). This data will establish the baseline against which future employee housing success will be measured. The baseline conditions will support both “catch up” and “keep up” efforts. Achieves Objectives A, B, C, D, E, F, G, and H. Monitor the Rate of Free Market Employee Occupied Homes The Town will monitor the rate of free market homes occupied by local workers, and deed-restricted homes, on a regular basis. Conversions of free market residential units to second home owner units will be considered in Vail’s evaluation of progress toward the goals identified in this Plan. This monitoring will support both “catch up” and “keep up” efforts. Achieves Objectives B, E, F, and G. Conduct a Demographics Survey of Current Vail Residents In order to better understand the current demographics of the local population it is necessary to conduct a local survey. This will provide the Town with back ground information to consider in future housing policy and development decisions to ensure the Town is maintaining a character that is as diverse as it is today. This may occur in conjunction the Annual Community Survey. This information will support “catch up” efforts. Achieves Objectives A, B, D, E, F, and H. 1/21/2014 17 Employee Housing Strategic Plan Establish a List of Essential Service Providers in the Town of Vail Establish a list of essential service providers in the Town of Vail to potentially partner with to ensure critical service workers live within the Town of Vail. This information will support “catch up” efforts. Achieves Objective D. Host Personal Finance and/or Home Buyer Education To encourage home ownership and create successful home owners it is important to provide information and educational opportunities to potential residents. This may also provide the encouragement current renters or existing home owners may need to take the next step in the housing market, freeing up their existing unit to house other employees. This education may provide additional “catch up” opportunity. Achieves Objectives B, D, E, and F. Annual Review In order to ensure the EHSP is always current and is responsive to changing conditions, the Housing Authority shall review the EHSP annually and changes shall be periodically recommended to the Town Council. The purpose of these reviews shall be to ensure that progress on topics related to employee housing is being maintained and that adjustments in Objectives, Policies and Action Steps are made in a timely and specific manner. Achieves Objectives A, B, C, D, E, F, G, and H. Regional Efforts: In order to house employees associated with existing and anticipated jobs, workforce housing will be required throughout the County as well as in the Town. Vail will work actively with Eagle County officials and other municipalities to look for regional solutions to providing housing. Further, the need to provide transit services along with housing is also identified. When developing housing for Vail employees in Down-Valley locations, the cost of transit services will be considered in evaluations. 1/21/2014 18 Employee Housing Strategic Plan While furthering regional housing is an objective of the Town, it will occur in concert with efforts in Vail, and in-Town deed-restricted housing will be a priority. The Town believes that there are a finite number of opportunities within Vail and these will be explored and pursued; Down- Valley development will not be undertaken if it results in not being able to participate in an opportunity within the Town’s boundary. Partnering opportunities for Down-Valley development will occur through partnerships that may include not only the County, but also the Town of Avon, Town of Minturn, Eagle County School District, the U.S. Forest Service, and potentially private developers. The Dowd Junction area and the Village at Avon are identified as particular areas of interest where development opportunities are to be explored. 1/21/2014 19 Employee Housing Strategic Plan IMPLEMENTATION MATRIX ACTION STEP WHO IMPLEMENTS WHEN ESTIMATED COST PROPOSED PRIORITY Establish and Fund VLHA Operating Budget Town Council and VLHA 4th Quarter 2008 To Be Determined A Establish Baseline "Existing Conditions" for All Units Town Council and VLHA 2009 $20,000 A Monitor Existing Conditions for All Units Town Council and VLHA 1st Quarter of Each Year (2010) $5,000 A Monitor Rental and Vacancy Rates Eagle County Continuous None A Conduct Housing Needs Assessment In conjunction with Eagle County 2010 $10,000 A Update Fee-in-Lieu for Commercial Linkage & Inclusionary Zoning Community Development Dept and Consultant 1st Quarter of Each Year $2,000 A Updated Rational Nexus Study Town of Vail Every Five Years (2011) $15,000 A Monitor Total Number of Jobs in Town of Vail Town of Vail 1st Quarter of Each Year $2,000 A Host Finance/ Home Buyer Education Classes VLHA Two Per Year $500 A Buy Down Units Town Council and VLHA Continuous $1,000,000 / year A Establish Buy Down Unit Criteria Town Council and VLHA 4th Quarter 2008 None A Develop New For- Sale Housing at Chamonix Town Council and VLHA 2010 Potentially more than the value of the land A 1/21/2014 20 Employee Housing Strategic Plan ACTION STEP WHO IMPLEMENTS WHEN ESTIMATED COST PROPOSED PRIORITY Develop Additional Rental Housing at Timber Ridge Town Council and VLHA 2011 Potentially the value of the land A Establish an EHU Exchange Program Town Council - Com Dev Dept - VLHA Recommendation 4th Quarter 2008 $10,000 for legal review A Implement the EHU Exchange Program Com Development Dept. and VLHA Continuous None A Review & Potentially Modify Commercial Linkage Town Council - Com Dev Dept - VLHA Recommendation 1st Quarter of Each Year None A Review & Potentially Modify Inclusionary Zoning Town Council - Com Dev Dept - VLHA Recommendation 1st Quarter of Each Year None A Identify Land/Development Opportunities Town Council - Com Dev Dept - VLHA Recommendation 2nd Quarter of Each Year None A Prioritize Land/Development Opportunities Town Council - Com Dev Dept - VLHA Recommendation 2nd Quarter of Each Year Acquisition of Property A Propose Development and/or Rezoning Town Council and VLHA 2nd Quarter of Each Year Development B Review Housing Zone District Town Council - Com Dev Dept - VLHA Recommendation 2nd Quarter of Each Year None B Establish Incentive Zoning to Ensure No Net Loss of Rental Housing Town Council - Com Dev Dept - VLHA Recommendation 2nd Quarter of Each Year None B 1/21/2014 21 Employee Housing Strategic Plan ACTION STEP WHO IMPLEMENTS WHEN ESTIMATED COST PROPOSED PRIORITY Pursue a Dedicated Funding Source Town Council and VLHA Begin 1st Quarter 2009 None in 2009 Marketing in 2010 B Monitor Free Market Real Estate Transactions VLHA and Consultant 1st Quarter of Each Year $5,000 B Establish List of Essential Service Providers Town Council and Town Staff 4th Quarter 2008 None C Create Partnerships with Essential Service Providers Town Council and VLHA Continuous None C ROLES AND RESPONSIBILITIES Roles and Responsibilities – The provision of deed-restricted housing is viewed as a partnership between various boards within the Town, each having important roles and responsibilities. As such, it is imperative that communications be established and maintained between boards to achieve the goal and objectives that are stated in this Plan. Efforts will be made to define, and periodically refine, the roles and associated communications between the bodies identified below. The Town Council shall act in accordance with Town codes and shall fulfill their decision-making functions as identified by local ordinances. Land Use Regulations typically stipulate the review procedures to be followed in reviewing a proposed development. Ultimately, most reviews require an affirmative decision by the Town Council. Therefore, the Council will be the ultimate decision-making body for developments that require Council review. The Planning and Environmental Commission and the Design Review Board also play an important development review role. These two boards will review development proposals, consistent with the requirements of codes and ordinances, to ensure that development is in compliance. 1/21/2014 22 Employee Housing Strategic Plan The Vail Housing Authority (V.L.H.A.) plays a critical role in ensuring that housing for long-term residents and seasonal employees is available in the Town. This in turn, enhances the quality of life for local residents, and improves the economic viability of the area. The V.L.H. A. mission: The V.L.H. A. will play an advisory role to the Town Council and the Planning and Environmental Commission on matters related to housing policy and development. The Authority will use this Housing Plan as a working document to guide future efforts. As identified in the EHSP, the Authority will work to carry out the Action Steps over the next three years. The Authority’s priorities will be those contained in the EHSP as it is adopted, and as it may be modified following subsequent annual reviews. 1/21/2014 23 Employee Housing Strategic Plan GLOSSARY The following definitions are applicable for the terms used in this Plan. Area Median Income (AMI) Limits – most communities establish income limits for the programs they administer based on the area median income (AMI) for the area according to household size, which are adjusted annually by the Department of Housing and Urban Development (HUD). Four different income categories are defined for various programs and policies: 1. Extremely low-income, which is less than 30 percent of the median family income; 2. Very low-income, which is between 30 and 50 percent of the median family income; 3. Low-income, which is between 50 and 80 percent of the median family income; 4. Middle income, which is between 80 and 120 percent of the median family income; and 5. Above middle income, which is over 120 percent of the median family income. 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 30% $17,050$19,500$21,900$24,350$26,300$28,250$30,200$32,150 50% $28,400$32,450$36,500$40,550$43,800$47,050$50,300$53,550 60% $34,080$38,940$43,800$48,660$52,560$56,460$60,360$64,260 80% $41,900$47,900$53,850$59,850$64,650$69,450$74,200$79,000 100% $56,800$64,900$73,000$81,100$87,600$94,100$100,600$107,100 120% $68,160$77,880$87,600$97,320$105,120$112,920$120,720$128,520 140% $79,520$90,860$102,200$113,540$122,640$131,740$140,840$149,940 160% $90,880$103,840$116,800$129,760$140,160$150,560$160,960$171,360 Catch-Up Housing – Housing needed to “catch-up” to current deficient housing conditions. In this Plan, catch-up housing needs are defined by current resident households reporting housing problems (overcrowded, cost-burdened and/or living in substandard housing conditions), current renters and owners looking to purchase a home and in- commuters that would like to move to Vail. Catch-up housing is generally addressed through local city development initiatives, non-profits and housing groups and public/private partnerships. Housing Continuum, The – As illustrated below, it is possible to estimate the number of resident households in the Town of Vail at various income levels. Vail’s planning is based on addressing the needs of households of different incomes, recognizing that there is a need to ensure housing for a diversity of households. 1/21/2014 24 Employee Housing Strategic Plan Over 140% AMI 31.8% <=50% AMI 401 HH/16.4% 50-80% AMI 345 HH/14.1% 80-100% AMI 425 HH/17.4% 100-140% AMI 496 HH/20.3% <=50% AMI Max Rent $913 Max Price $124,796 50-80% AMI Max Rent $1,346 Max Price $180,238 80-100% AMI Max Rent $1,825 Max Price $241,432 120-140% AMI Max Rent $2,738 Max Price $334,741 2007 Vail Households 50% AMI $36,500 80% AMI $53,850 100% AMI $73,300 140% AMI $109,500 Over 140% AMI Rent Over $2,738 Price Over $334,741 EXISTING DEED RESTRICTED EMPLOYEE HOUSING <=50% AMI Max Rent $913 Max Price $124,796 50-80% AMI Max Rent $1,346 Max Price $180,238 80-100% AMI Max Rent $1,825 Max Price $241,432 100-140% AMI Max Income $109,500 Max Rent $2,738 Max Price $334,741 2007 Vail Households Over 140% AMI Income Over $109,500 Rent Over $2,738 Price Over $334,741 Middle Creek Rent 142 Units Less than 60% AMI Buzzard Park Rent 24 Units Town Employee Typically less than 120% AMI Vail Commons, Red Sandstone, North Trail For Sale 77 Units 100% AMI or less Miller Ranch For Sale 282 Units 60-120% AMI 50% AMI $36,500 80% AMI $53,850 100% AMI $73,300 140% AMI $109,500 Inclusionary Zoning – requires a minimum percentage of residential development be provided to serve local employees as part of new residential developments (10 percent in Vail). Inclusionary zoning is a housing production obligation based on the community’s need for employee housing as related to many factors, including a decreasing developable supply of land, rising home values, insufficient provision of housing affordable to residents by the market, etc., in addition to any direct employee generation impacts of development. Keep-Up Housing – Housing units needed to keep-up with future demand for housing. In this Plan, keep-up housing needs focuses on new housing units needed as a result of job growth in Vail and new employees filling those jobs. Keep-up housing is often addressed by the existing free-market, as well as regulatory requirements or incentives to produce housing that is needed and priced below the current market. 1/21/2014 25 Employee Housing Strategic Plan Levels of Homeownership – When discussing affordability of properties by Area Median Income (AMI) level (defined above) and the types of homes households among different AMI groups are seeking; reference is made to a couple different stages of homeownership. This includes: 1. Entry-level ownership/first-time homebuyers: These are households typically earning in the lower to middle income range. In Vail, these are households earning 50 to 100 percent of the AMI. These include households that currently rent (or otherwise do not own a home) and are looking to purchase their first home. 2. Move-up buyers: These are households earning in the middle to upper income range (about 100 to 120 percent AMI or higher) that may currently own a home and are looking to purchase a new or different home for a variety of reasons (relocating, growing family (e.g., having children), shrinking family (e.g., empty-nesters), etc.). Mean – the average of a group of numbers, which is the sum of all the data values divided by the number of items. Median – the middle point in a data set. 1/21/2014 26 Employee Housing Strategic Plan RESOLUTION NO. 20 Series 2008 A RESOLUTION ADOPTING THE TOWN OF VAIL EMPLOYEE HOUSING STRATEGIC PLAN; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail (the “Town”), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the “Charter”); and WHEREAS, the Town has determined that no less than thirty percent (30%) of Vail’s workforce should be provided deed restricted employee housing within the Town limits; and WHEREAS, the Council has determined that in order to achieve the established goal it is critical to create an employee housing strategic plan establishing and clarifying the objectives and action steps essential to achieve the stated goal; and WHEREAS, the Vail Local Housing Authority and Council developed the Employee Housing Strategic Plan over a period of six months that outlines the goal, objectives and action steps; and WHEREAS, the Vail Economic Advisory Committee provided input and direction on the Employee Housing Strategic Plan at their May 13, 2008, and June 10, 2008, meetings; and WHEREAS, the Planning and Environmental Commission provided input and direction on the Employee Housing Strategic Plan at their August 25, 2008, Public Hearing; and WHEREAS, the Council supports the implementation of the Vail Employee Housing Strategic Plan; and WHEREAS, the Employee Housing Strategic Plan will direct policy and budget decisions in order to achieve the community’s stated goal; and WHEREAS, it is the intention of the Council and the Housing Authority to implement the Employee Housing Strategic Plan over the next three years. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: 1. The Council hereby approves the Town of Vail Employee Housing Strategic Plan, dated September 2, 2008, attached hereto as Exhibit A. 2. The Council hereby finds: A. That the Employee Housing Strategic Plan is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, 1/21/2014 27 Employee Housing Strategic Plan B. That the Employee Housing Strategic Plan furthers the general and specific purposes of Zoning Regulations; and, C. That the Employee Housing Strategic Plan promotes the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality 3. This Resolution shall be effective immediately upon adoption. INTRODUCED, READ, APPROVED AND ADOPTED this 2nd day of September, 2008. ______________________________ Richard D. Cleveland, Town Mayor ATTEST: Lorelei Donaldson, Town Clerk 1/21/2014 28 Employee Housing Strategic Plan PROCESS TIMELINE Vail Town Council May 6, 2008 Work Session Affirm housing goals and purpose of the EHSP Review proposed actions and timeline July 1, 2008 Work Session July 15, 2008 Special Work Session Identify and affirm objectives and action steps Confirm overall direction of the EHSP August 19, 2008 Work Session Identify and affirm the SWOT analysis Affirm overall direction of the EHSP September 2, 2008 Adopt the Town of Vail Employee Housing Strategic Plan Planning and Environmental Commission August 25, 2008 Work Session Provide feedback on the EHSP Vail Local Housing Authority March 24, 2008 VLHA Work Session Met with consultant (Chris Cares) Dusted off previous work towards a TOV Strategic Plan April 10, 2008 VLHA Work Session Review and update proposed actions and timeline April 24, 2008 VLHA Work Session Further refine actions and timeline for Council meeting May 13, 2008 Vail Economic Advisory Council Discussion of Housing Objectives May 15, 2008 VLHA Work Session 1/21/2014 29 Employee Housing Strategic Plan June 10, 2008 Vail Economic Advisory Council Further discussion of Housing Objectives June 10, 2008 VLHA Work Session June 24, 2008 VLHA Work Session July 8, 2008 VLHA Work Session July 22, 2008 VLHA Work Session SWOT Analysis August 12, 2008 VLHA Work Session SWOT Analysis August, 2008 Meet with Local Employers August 26, 2008 VLHA Work Session Review Planning Commission feedback Implementation Matrix Review 1/21/2014 2013/14 Lionshead Park Naming Contest Suggested Park Name Rational Submitted by Email address Brad Baldwin Memorial Park Brad was a police officer who served the Town of Vail for 25 years and was a symbol of what Vail stands for. I think a children's park bearing his name would be a fitting tribute to someone who loved the town as he did. Jennifer Kirkland jkirkland@vailgov.com Pride Park The name suggests the family feel of Lionshead, as "the pride" is the family or pack in which lions live.Mary McDougall dooglers@aol.com Three Onion's Plaza I was struck when I saw a picture of the new park, the children's slides remind me of fresh dug onions. People all over the world will relate to the name once they see the park! Paul Scheuermann paulthebull@hotmail.com Lion's Den Park 11/29 My son, Trett, age 7 from RSES suggests this name because we have mountain lions in Colorado and the park is in Lionshead.Samuel Bennett samuel.bennett425@gmail.com Packy Park 11/29 For obvious historical reasons!Peter Glakin pglad1@att.net Beyond the Sundial The name is to pay tribute to the previous landmark's history while enjoying the new art of today and beyond.Allison Matula ciscopd@snet.net Dr. Steinberg Park I would suggest to name the park after Vail's first doctor.Mervyn Lapin mervynlapin@icloud.com The Den or Lion's Den Park 12/2 The name is in context with Lionshead village and suggests it be the resting place of a lion. A resting place for humans as well.Chad Stephens alpinelivin@hotmail.com Parker Park I propose the newly built park be named after Bob Parker. This name would be very well received by all the old-timers!Susan Bristol susan.bristol@gmail.com Phenix Plaza Phénix is a reference to the mythological creature that was born from a nest of fire. I believe this park/plaza dovetails perfectly with this idea. Not only is this site a renewal of the former plaza, but it offers park-goers a sense of renewal as well. The name also alludes to a connection with the park’s “nests.” More loosely, it connects with the park’s former name and with Eagle’s nest. What’s more, the French spelling ties in with Arrabelle and the European feel of Lionshead and Vail in general.Joe Batcheller jbatcheller@vailgov.com The Lion's Den or Roar Room 12/3 For Lions big and small.Nina Timm ntimm@vailgov.com Sanctuary Plaza 12/3 The nest component of the park reminds me of a sanctury, or safe place, where kids can go to to play. It fits the historical significance of a park as a respite and a place to escape from our busy world and lives.Meryl Jacobs mdj2145@gmail.com Sunbird Park A tribute to the old Sunbird Lodge employee housing complex that once stood where a portion of the Arrabelle stands today.Suzanne Silverthorn ssilverthorn@vailgov.com Lion's Pride Park No rational no name housewifeslace@aol.com 1/21/2014 Packy's Park 12/3 We need to remember and celebrate some of Lionshead's history and occasional irreverence!Rob LeVine rLeVine@antlersvail.com Lark's Nest Park The Lark Bunting is Colorado's state bird. The nest is the name of the art pieces.Lori Aker laker@vailgov.com Eagle's Nest Park/Lion's Cub Park No rational Carolyn Godfrey cgodfrey@vailgov.com Sundance Park This would be a great name for the park as so many people miss the Sundance Saloon.John Ervin jervin@vailgov.com Chief Colorow Park I would like to recommend naming the park for a famous Native American Ute Chief who had a major impact on the early written history of our area. I feel recognizing the first people of our area in naming the park would tie together the historic fabric of our community we are all so proud of. Martin Haeberle mhaeberle@vailgov.com Lion's Den Park 12/10 Features the namesake location, Lionshead Fountain in Lionshead. The nests can be reimagined as Den’s, the rock wall is the perfect backdrop for the mountainous environment in which you would find a mountain lion. A few artistic lion's heads could be added into a nest or two.Tom Kassmel tkassmel@vailgov.com Imagination Park or Imagination Challenge Park The name should include “fun” or “imagination”. There is already an “Imagination Station” in Lionshead, so you could add the name “Imagination Park” to follow that theme. Or, since the water spouts and climbing wall provide a challenge to kids, and the “nests” a challenge to the imagination, you could call the space the “Challenge of Fun” park, or the “Imagination Challenge” park.Marshall Turley mftavail@gmail.com WonderNest or LionsNest Den The name plays on the wonder of Vail wilderness and the nests. The name plays on Lionshead, Lioness and cubs playing. Mary Harp Mary.Harp@eagleschools.net Bird's Nest Park I like it with Eagle's Nest at the top of hill, Bird's Nest at base. Also the name should suggest the imaginative play. Like pirate ship park explains what the park is, bird's nest would explain what the super-cool tear drop shapes are.Kerry Donovan vaildonovan@gmail.com Foley Park 12/8 I would like to suggest that the new park in Lionshead be named Foley Park , after Kevin Foley. In his 14 years on Town Council, he was a constant supporter of building a playground/tot lot for children in the Lionshead neighborhood - he never let an opportunity go by to promote and encourage the replacement of the kid's park that many years ago was misplaced from Lionshead. Kim Newberry Kimnewbury@gmail.com Foley Park 12/10 Name the park in honor of Kevin Foley Salvatore Morales smorale77@gmail.com. The Cove You have the Pirate Ship park in Vail Village. This park sits in a nice litte "cove" area in Lionshead.Shelley Bellm sbellm@vailgov.com Summit Park at Lionshead Reflecting the park's position at the top of Lionshead and our mountain location.Jeff Cambell jcampbell@vailgov.com Overlook Park Similar to Summit Park but less geographic to region.Jeff Cambell jcampbell@vailgov.com The Lair at Lionshead Encompassing the idea of the Lionshead's cliff origin in Minturn, the rock formations reflect the African Serengeti and the nests have an almost lion's den/cave feel.Jeff Cambell jcampbell@vailgov.com Sanctuary Park 12/17 The suggestion combines the elements of a lion's den (nest), water features, peacefulness and preservation. Jeff Cambell jcampbell@vailgov.com 1/21/2014 The Lion's Den Park or Noth Park 12/22 No rational John Sheehan jsheehan@vailgov.com Crown Park Who else would sit on the head of the king of the jungle?Sean Koenig skoenig@vailgov.com Lionshead Safari Park Just like safari's are an adventure, so too is the Lionshead park with all of the interactive play features.Sean Koenig skoenig@vailgov.com Lionshead Village Park This name will capture our social media audience.Sean Koenig skoenig@vailgov.com Lionshead Play Quest Park With all the interactive play features, the Lionshead park will be an unrivaled adventure in park play.Sean Koenig skoenig@vailgov.com The Park of Ullr ("ooler") The Scandinavian god of winter who mastered the art of archery and skiing is named Ullr. I believe if we name the new park after the Scandinavian snow god there would be no better way to please Ullr than to have the children laughing, playing and chanting out his name. Grant Goddard Grant@goddardassociates.com 1/21/2014 Vail Business Review November 2013 January 10, 2014 The November Vail Business Review breaks down the four percent sales tax collected for the month of November 2013. Overall November sales tax increased 5.0% with Retail up 12.2%, Lodging down 2.3%, Food and Beverage up 8.6%% and Utilities/Other (which is mainly utilities but also incl udes taxable services and rentals) down 8.7%. The Out of Town category was favorable to last year in the retail category (interior design firms, furniture and office supply stores delivering in to Vail), but down in other categories including lodging and utilities. Excluding the Out of Town category sales tax for the month of November was up 5.4%. Town of Vail sales tax forms, the Vail Business Review and the sales tax worksheet are available on the internet at www.vailgov.com. You can subscribe to have the Vail Business Review and the sales tax worksheet e-mailed to you automatically from www.vailgov.com. Please remember when reading the Vail Business Review that it is produced from sales tax collections, as opposed to actual gross sales. If you have any questions or comments please feel free to call Sally Lorton at (970) 479-2125 or Judy Camp at (970) 479-2119. 1/21/2014 TOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEW NovemberNovemberNovemberNovember Sales Tax Newsletter November 2013 Sales TaxNovember 2013 Sales TaxNovember 2013 Sales TaxNovember 2013 Sales Tax NovemberNovemberNovember 2012 2013 % Collections Collections Change VAIL VILLAGE Retail 93,946 110,665 17.80 % Lodging 87,930 87,490 -0.50 % F & B 132,356 137,053 3.55 % Other 4,772 2,232 -53.23 % Total 319,003 337,440 5.78 % LIONSHEAD Retail 48,301 48,659 0.74 % Lodging 46,227 51,128 10.60 % F & B 41,749 44,566 6.75 % Other 2,005 2,296 14.53 % Total 138,282 146,650 6.05 % CASCADE VILLAGE/EAST VAIL/SANDSTONE/WEST VAIL Retail 104,057 105,153 1.05 % Lodging 37,948 34,569 -8.91 % F & B 34,814 45,546 30.83 % Other 3,874 2,980 -23.07 % Total 180,693 188,248 4.18 % OUT OF TOWN Retail 70,758 91,224 28.92 % Lodging 11,247 6,020 -46.47 % F & B 351 114 -67.48 % Utilities & Other 115,921 108,080 -6.76 % Total 198,277 205,439 3.61 % 1/10/2014 2:11:35 PM Page 1 of 2 1/21/2014 TOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEW NovemberNovemberNovemberNovember Sales Tax Newsletter November 2013 Sales TaxNovember 2013 Sales TaxNovember 2013 Sales TaxNovember 2013 Sales Tax TOTALTOTALTOTALTOTAL NovemberNovemberNovember 2012 2013 % Collections Collections Change Retail 317,061 355,701 12.19 % Lodging And Property Mgmt 183,352 179,207 -2.26 % Food and Beverage 209,270 227,280 8.61 % Other 126,572 115,588 -8.68 % Total 836,254 877,776 4.97 % RETAIL SUMMARYRETAIL SUMMARYRETAIL SUMMARYRETAIL SUMMARY NovemberNovemberNovember 2012 2013 % Collections Collections Change RETAIL-FOOD 81,784 75,047 -8.24 % RETAIL-LIQUOR 25,039 26,683 6.57 % RETAIL-APPAREL 37,866 43,155 13.97 % RETAIL-SPORT 81,615 94,963 16.36 % RETAIL-JEWELRY 6,510 9,311 43.04 % RETAIL-GIFT 4,759 2,639 -44.54 % RETAIL-GALLERY 3,501 2,473 -29.36 % RETAIL-OTHER 75,867 101,428 33.69 % RETAIL-HOME OCCUPATION 120 0 -100.00 % Total 317,061 355,701 12.19 % 1/10/2014 2:11:35 PM Page 2 of 2 1/21/2014 Vail Economic Advisory Council (VEAC) January 14, 2014 MEETING NOTES  VEAC Members Present: Rayla Kundolf; Matt Ivy; Michael Kurz; Robin Litt; Paul Wible; Kim Newbury; Chris Romer; Brian Nolan; Rob Levine; Matt Morgan; Margaret Rogers; Bob Boselli; Laurie Mullen  Others Present: Andy Daly – Mayor; Jim Lamont - Vail Homeowners Association; Laura Waniuk – Event Liaison  TOV Staff Present: Town Manager Stan Zemler; Finance Director Judy Camp; Economic Development Manager Kelli McDonald; Town Engineer Tom Kassmel, Director of Community Development George Ruther.  The Road to 2015 George Ruther presented a working plan for financial incentives for local business owners in Vail Village, Lionshead and West Vail. The overall strategy is to energize guests to return to Vail after the 2015 World Championships. By showcasing the quality, attractive and appealing village atmosphere capturing the spirit and brand of Vail, guests will want to experience it again. The focus of this program is on improving the look, feel and excitement of retail store fronts. Motivate local tenants, building owners and landlords to update, fix and repair the external appearance of the building in preparation for the 2015 Vail Beaver Creek World Championships - February 2-15, 2015. Incentives may include: Reduced or exempt permit fees for external retail business improvements, such as facades, awnings, lighting, signage and potentially other items to be discussed. Next steps: George to develop plan; review with VEAC and then present to Town Council.  I-70 Underpass Tom Kassmel reviewed the current I-70 Underpass plans that are still in process. Currently the most favorable location is “Simba Run”, a location between the West Vail and Main Vail exits where both the north and south frontage roads are below I -70. Success Factors Include:  Reduce congestion at the Main Vail and West Vail interchanges 1/21/2014  Improve connectivity in the community  Improve emergency response  Enhance multimodal safety, efficiency and connectivity  Improve traffic safety  Enhance economic vitality For more information please see: www.vailgov.com/underpass.  Financial Report Judy Camp reviewed with the members the financial reports that were provided in their packets. Highlights included: November 2013 revenues were up 12% over November 2012, which represents the 8 th record sales month. Year to date for 2013 revenues are u p 8% over 2012.  Town Manager Report Stan Zemler provided a CDOT update on the Twin Tunnels. CDOT has reported a 10 minute travel time improvement going eastbound on I-70 through this section. CDOT will be requesting $40 million to begin construction on the other side of the tunnels at the end of this ski season.  Citizen Input None  Other Business The group discussed the last day of the season landing on Easter and if that has an economic impact on hotels and businesses.  Next Meeting The next meeting is scheduled for Tuesday, February 11 beginning at 8:00 a.m. at The Antlers Lodge in the Caribou Pronghorn Room. 1/21/2014 To: Vail Town Council From: Community Development and Public Works Departments Date: January 21, 2014 Subject: Alternative Fuels Analysis Project I. PURPOSE Review the proposal for analyzing the Town of Vail’s alternative fuels program for fleet operations. The Town Council requested the staff investigate the conversion of the town’s fleet to Compressed Natural Gas (CNG). II. BACKGROUND The Town Council requested the town investigate the possibility of converting the town’s fleet to CNG as an alternative fuel, specifically the bus fleet, in anticipation of the purchase of 15 transit coaches budgeted in 2016 and 2018. The town requested a proposal from the engineering firm of Schuemeser Gordon Meyer(SGM) out of Glenwood Springs to analyze the implications of converting the fleet to the use of CNG alternative fuel. II. PROJECT The Fleet/PW department would like to enter into an agreement with SGM (see attached proposal), to evaluate the cost associated with using alternative fuels in the transit fleet and elsewhere within the town fleet in the future. In order to get accurate costs for utilizing alternative fuels, staff needs to determine the capital costs for the infrastructure as well as the buses/vehicles. SGM has been involved with other projects of this nature, most recently and locally with Roaring Fork Transit Authority (RFTA) in the Roaring Fork Valley and with Steamboat Springs. RFTA is utilizing natural gas buses and SGM provided cost estimates, as well as assistance with the implementation of natural gas buses, fueling facility and shop/bus barn modifications. There are specific building codes for fueling, storing and working on natural gas vehicles. The costs associated with modifying the facilities needs to be evaluated, and SGM has the expertise to provide those cost estimates. The proposal from SGM is $11,400 for the alternative fuel analysis, and an additional $4,000 to have a contractor provide more detailed cost estimates of the shop/bus barn facilities. 1/21/2014 Town of Vail Page 2 The decision to utilize alternative fuels will have a significant impact on all aspects of the PW/Transportation department. Utilizing SGM, who has recent experience with the implementation of alternative fuels in transit, would provide invaluable expertise and much more accurate cost estimates. Energy and Cost Savings The conversion of the town’s fleet would have little impact on the reduction of the town’s Greenhouse Gas (GHG) emissions compared to newer diesel engines, but would have significant reduction in emissions over the older diesel engines that will be replaced. The potential savings would be in operating costs over a period of time. The analysis would be performed to calculate the anticipated operating costs verses the capital investment to realize the savings. A payback analysis will be completed as part of the study. Process The next steps would be for the town’s consultant to analyze in greater detail all the issues of retrofitting the town’s fleet to using CNG. This would include operating and capital costs, specific training and operational protocol, use assumptions and more detailed payback analysis. Once the project is analyzed in more detail, town staff would present the project to the Town Council for review and guidance well in advance of soliciting proposals for purchasing the next round of transit vehicles prior to 2016. IV. PROJECT FUNDING The staff would recommend the funds for this analysis come from the Heavy Equipment Fund balance, and if approved to proceed, would be adjusted at the first budget supplemental. V. STAFF RECOMMENDATION Staff recommends that the Vail Town Council direct staff to enter into a contract with SGM to develop a detailed project analysis of converting the town’s fleet to CNG. The project would be funded out of the Heavy Equipment Fund. VI. NEXT STEPS The CNG conversion timeline is as follows if the analysis meets the approval of the town staff and town council: Project detailed analysis: January-May 2014 Town Council review of detailed CNG analysis May 2014 If acceptable adjust future budgets during budget August-October 2014 Order buses 2015 Retrofit Shop Facilities and Construct fueling 2015 Take delivery of CNG buses 2016 VII. ATTACHMENTS 1/21/2014 Town of Vail Page 3 A. SGM proposal B. Link to a Study by the firm of M. J. Bradley and Associates LLC tilted “Comparison of Modern CNG, Diesel and Diesel Hybrid-Electric Transit Buses: Efficiency & Environmental Performance” - See more at: http://www.mjbradley.com/node/241#sthash.cfEMJsO6.dpuf 1/21/2014 www.sgm-inc.com GLENWOOD SPRINGS 118 West Sixth St, Suite 200 | Glenwood Springs, CO 81601 | 970.945.1004 October 21, 2012 Todd Scholl Fleet Manager Town of Vail 1309 Elkhorn Drive Vail, CO 81657 RE: Alternative Fuel Analysis Proposal Dear Todd, Thank you for the opportunity to propose on this project. The recent movement towards alternative fuels in municipal government has been inspiring and we feel fortunate to have been so actively involved. Our most recent success has been to assist the Roaring Fork Transportation Authority implement CNG for its new BRT project. This project came in on-time, within budget and is working better than expected. We’re confident that Town of Vail can have similar success. Please accept this letter proposal from SGM to provide these services. Our proposal is presented in the following sections:  Team Overview o Introduces the Team’s background and presents a team member’s qualifications table  Project Approach o Discusses our assessment approach, defines the scope of work and identifies our project deliverables  Project Costs o Presents a summary table of costs Team Overview Our team is comprised of individuals with very diversified and extensive experience in evaluating alternative energy. Our expertise and enthusiasm for this work is clearly demonstrated throughout this proposal and is embedded in every service we provide. Through this very well qualified team, we bring… extensive experience with nearly 50 years of combined expertise relevant project knowledge in CNG and other alternative fuels for municipal fleets; and specific experience evaluating alternative energy projects in Western Colorado proven leaders in efficiency, alternative energy and lifecycle analysis 1/21/2014 www.sgm-inc.com Page 2 of 4 Team Member’s Relevant Experience and Qualifications Table Project Team Member Relevant Experience/Qualifications Dan Richardson, CEM LEED AP Project Quality Assurance - SGM Team Leader and senior consultant since 2007 - 19 years of experience focused on alternative energy and project management in Western Colorado - Extensive facility analysis experience including design, budgeting, condition assessment and asset management Tony Haschke, EI, CEM, CBCP, CLEP Project Manager, Energy and Mechanical Systems Engineer - Mechanical Engineer, Certified Energy Manager, Certified Building Commissioning Professional - Commercial Building Design Engineer - 30 yrs of experience in HVAC maint., troubleshooting and training - Managed projects realizing energy-related savings of over $1.5M - Lead code researcher for CNG Our team also includes additional available technical resources, comprised of SGM’s full engineering team, including the design engineers, field engineers and CAD draft persons. Full resumes can be provided upon request. To demonstrate our collective experience in alternative fuel analysis and facilities we have included a short summary table of relevant projects below. More detailed project descriptions can be provided upon request. Relevant SGM Projects Client Project Title Roaring Fork Transportation Authority (RFTA) Initial alternative fuel analysis in 2009; due diligence analysis for CNG in 2011 including conceptual design and code analysis with local jurisdiction; project management for design and construction of CNG fueling station and maintenance facility upgrade projects; project delivered on-time, withing budget and is performing very well, CNG oversight to verify safety procedures City of Steamboat Springs Alternative Fuel System Analysis for Steamboat Springs Transit, including analysis of hybrid, CNG and battery-electric compared to clean diesel; includes fuel price forecasting for all applicable fuels and a lifecycle cost model Berthod Motors Analysis and conceptual design of CNG-ready facility Glenwood Springs Ford Analysis and conceptual design of CNG-ready facility High Country Honda Analysis and conceptual design of CNG-ready facility Garfield County Fleet Efficiency/Optimization analysis 1/21/2014 www.sgm-inc.com Page 3 of 4 Project Approach We understand the intent of this analysis to be for SGM to provide the necessary analysis to the Town of Vail so that they have sufficient information with which to make a decision about alternative fuels for its fleet, specifically whether CNG is a viable option. This proposal articulates how the team will address all aspects of the project by focusing on three core strategies: • CNG Expertise. Our team’s extensive and comprehensive experience with CNG and other alternative fuels in Western Colorado is unparalleled. We understand the local vehicle and fleet issues and how to effectively evaluate alternatives. • Accurate Analysis. We have been focused on alternative energy in Western Colorado for over 13 years. We have great depth of understanding of how to accurately capture meaningful information to facilitate the decision-making process. • Local Dedication. Because this project is in our ‘neighborhood’, we have added incentive and every intention to ensure the analysis exceeds expectations. SGM also has a strong working relationship with the Town of Vail that we plan to maintain and strengthen through this project. These strategies are the guiding principles for our approach. The following is a brief summary of our proposed scope of services: 1. Alternative Fuel Analysis A. Review specific project goals with ToV staff. B. Conduct site visit with mechanical engineer and contractor. C. Conduct research on: a. local jurisdiction code requirements for CNG fueling and vehicle maintenance; b. historical fuel, electricity and maintenance costs to serve as the base case scenario; c. existing natural gas service including rates, pressure, location, etc.; and d. existing electrical service including rates, capacity, location, etc. D. Draft report including: a. summary of findings of ToV operations, requirements, desired outcomes, etc.; b. statement of assumptions and methodology for analysis; c. a brief summary of each alternative; d. summary table(s) of key decision drivers; and e. summary of recommendations, including a description of what different scenarios would favor each alternative fuel option. E. Customized lifecycle cost model to evaluate different scenarios. F. Peer review of analysis. 1/21/2014 www.sgm-inc.com Page 4 of 4 G. City Council meeting preparation and presentation. 2. Contractor Cost Estimate A. Collaborate with vendors to develop 30% cost estimates for implementing CNG. Additional Service Options 1. Implementation Project Management These services are offered with the intent to the Town in implementing whatever alternative fuel strategy it selects. a. Contractor Solicitation: If the ToV decides to proceed with any recommendations, SGM is available to draft RFI’s, RFQ’s and/or RFP’s and serve as technical consultant. b. Design and/or Construction Project Management: SGM successfully managed the design, fire marshal approval and construction of RFTA’s CNG facilities and offers the same service to ToV. c. Safety Oversight: RFTA has asked SGM to provide maintenance and safety manuals, Emergency Response Protocols and staff operations oversight. SGM can provide the same services for ToV. d. Fleet Efficiency/Optimization Analysis: Regardless of whether the Town pursues alternative fuels, SGM is available to assess fleet vehicles and fleet management in an effort to reduce costs and GHG emissions. Project Costs We have estimated our costs based on our understanding of your desired outcomes. The table below is a summary of the costs our team has identified to achieve your goals. We are enthusiastic about the opportunity to assist you in evaluating alternative fuels for the Town of Vail. If you wish to engage our services please sign and return the attached letter of agreement. I look forward to hearing from you soon so that we can move this project forward. Thank you for your time. Sincerely, Dan Richardson, CEM, LEED AP Senior Energy Consultant, Team Leader Task Description Total Fees A. Alternative Fuel Analysis $11,400 B. Contractor Cost Estimate Allowance $4,000 Option: Implementation Project Management TBD 1/21/2014 TOV/CSE Minutes January 15, 2014 Page 1 of 6 DRAFT MINUTES: Town of Vail: COMMISSION ON SPECIAL EVENTS MEETING Vail Town Council Chambers Wednesday, January 15, 2014 @ 8:30 a.m. CSE Members Present: Jeff Andrews Bobby Bank Amy Cassidy Barry Davis Rayla Kundolf Nicole Whitaker CSE Member Absent: Mark Gordon (appointed in December, not sworn in to date) Town of Vail Staff Present: Kelli McDonald, Economic Development Manager Sybill Navas, CSE Coordinator Others Present: Laura Waniuk, Event Liaison Contractor Margaret Rogers, Vail Town Council Tracy Flower, Executive Director - Vail Symposium Rob LeVine, Treasurer – Vail Symposium Carl Colby, Executive Director - Vail Global Energy Forum Steve Tucker – Living Well Peggy Wolfe - Highline Meeting Materials may be viewed at: http://www.vailgov.com/WebLink8/Browse.aspx?startid=34151&row=1&dbid=0 CSE Acting Vice-Chair, Barry Davis, called the meeting to order at 8:31 a.m.  Administrative Items a. Acting Town Clerk, Tammy Nagel, swore in CSE Members who were appointed by the Town Council on December 17, 2013. Jeff Andrews, Bobby Bank , Rayla Kundolf and Nicole Whitaker were each appointed to a two year term, expiring on December 31, 2015. Mark Gordon, who was unable to be present at this meeting, was appointed to the unexpired term vacated by Dave Chapin, which expires on December 31, 2014. b. Election of CSE Chair and Vice Chair, each to serve a two year term, ending December 31, 2015. 1/21/2014 TOV/CSE Minutes January 15, 2014 Page 2 of 6 Nomination and motion process was explained by Sybill Navas. Davis opened the opportunity for nominations for Chair of the CSE. Kundolf nominated Bank. There was no second to the nomination. Cassidy nominated Davis, the nomination was sconded by Davis.  Motion to elect Barry Davis as Chair of the CSE for a term to expire on December 31, 2015. M/S/P: Andrews/Bank/Unanimous The motion passed 6-0 Nominations were then opened for CSE Vice-Chair. Whitaker nominated Kundolf, which was seconded by Andrews. Cassidy then nominated Bank, which was seconded by Davis. Davis called for a vote, which ended in a 3-3 tie, with Andrews, Whitaker and Kundolf supporting Kundolf and Cassidy, Bank and Davis supporting Davis. Kundolf then removed herself from consideration, citing her strong involvement on other Town of Vail boards.  Motion to elect Bobby Bank as Vice-Chair of the CSE for a term to expire on December 31, 2015. M/S/P: Cassidy/Davis/Unanimous The motion passed 6-0 c. Approval of the Minutes of the CSE Meeting of December 4, 2013  Motion to approve the Minutes of the meeting of December 4, 2013, as presented. M/S/P: Kundolf/Bank/Unanimous The motion passed 6-0 d. Approval of Meeting Schedule for 2014  Motion to approve the CSE Meeting Schedule for 2014. M/S/P: Cassidy/Andrews/Unanimous The motion passed 6-0  Highline: Vail America Days Update Peggy Wolfe from Highline Sports, the current producer of Vail America Days came to discuss the budgetary challenges of producing the event in 2014. Highline has received $70,000 in funding for the event. This year the Highline is only responsible for fireworks and the parade, which is different from last year . Wolfe stated that the insurance for the parade is cost prohibitive for Highline to produce the event. Insurance costs quoted by Peggy were $15,000 In addition, she stated that the fireworks could cost up to $35,000. Their concern is being able to produce a world class event, with the funding given. After a budget review, they don’t want to compromise on quality. They approached the CSE at this time because they are not convinced they can adequately produce the event with these major expenses and may pull their name from the bid. They wanted to give enough time to the CSE, in case the event has to go back out for RFP to another vendor. 1/21/2014 TOV/CSE Minutes January 15, 2014 Page 3 of 6 The most expensive line items on their budget are insurance and fireworks. Insurance costs are the same or more as last year. The length of the parade and no barricades along the road are driving up the cost of insurance. The cost of fireworks is a moving target, depending on the type, close proximity. Cost estimation is approximately $2,000 per minute. If you pack more fireworks into a shorter amount of time, the cost varies. Last year it was an eleven minute show; it was condensed to make it more impactful. There is room for adjusting the budget and the last two years were approximately $35,000. Given the fact the Vail America Days is an event “owned” by the Town of Vail, she understood that the Town would investigate the possibility to carrying the insurance for the event under their own policy. Previous producers wereable to integrate costs into their overall annual insurance budget for all their events. Events are insured by the producer. Town of Vail uses a different insurance provider specifically for municipalities. Highline wants to make sure they have the right coverage ; limits and liability. If they can find the extra $15,000 and the fireworks are $35,000, that’s a significant amount of the funding of the event. CSE members agreed to ee what we can do from the town internally prior to presenting to Town Council. Last year the CSE funded $70,000, including the fireworks. Wolfe stated that Highline does want to produce the event under the condition they don’t lose revenue on the event. Last year they had no sponsorship, Bank asked Wolfe to answer the question,” f this is the total funding, then what is it that Highline can produce?” This item will be placed on the February 5th CSE agenda for further discussion and a decision on how to proceed.  Review applications and recommend funding allocations for 2014 Special Event Funding submitted in response to the RFP for the Tier IV Category:”Life Long Learning” Applications were received from the following entities: a. Vail Symposium: January-March 2014 Request: $50,000 Winter program features 13 different events requested for funding, fundraising events are omitted. The events cover hot topics, living at your peak, unlimited adventure, ground-breaking medical research, skiers, and producer for the show Deadliest Catch, pushing limits and pushing boundaries. The events provide diverse info on the topics, and offer Q&A with interesting speakers. Andrews asked about funding from last year, from other supporters. Response: About 17% comes from ticket sales and 83% comes from sponsorship and in-kind. 1/21/2014 TOV/CSE Minutes January 15, 2014 Page 4 of 6 The events in the past have a local attendee population, around 70%. CSE asked how they would market outside the local area. Currently they rely on the Vail Daily for marketing, their budget is almost zero. They work with the front range to extend the reach for audience. CSE asked if they had PR services. Response: All marketing done in house, get the word out as far as possible. Last year they had coverage on the Stem Cell program with the online Colorado W all Street Journal. They have had PR services donated in-kind. Suggestion by CSE to reach out to some of the sponsors for PR or marketing to expand their reach. They work with destination lodging to support the programs which enables them to contact and email out targeted guests whom are already coming to town. Their polling exercise results showed – 85-90% are local, 10-15% outside. Living Well program – had come to Vail for the program only – 30%. Their current staff fluctuates from 2-3 people based on needs. What does the symposium offer that you can’t get on TV? Face to face interaction, dinners and discussions. Well-known people. Many events take place in the first quarter, there are two programming seasons. Winter/Summer. b. Vail Global Energy Forum: February 28 – March 2, 2014 Request: $10,000 This event draws national and global attention. Other premiere mountain communities produce similar events. The event appeals to public and provides scholarships to 90-100 students. Announcements go out to universities and colleges where professors select attendees. The event uses Vail community branding on all materials and signage. The event concept is to make it about one idea, in this case energy, which is a significant issue for Colorado. The event is aligned with the Precourt Institute for Energy, the Precourt Energy Efficiency Center at Stanford University and the Vail Valley Foundation. The event was mostly local the first year. It has expanded a bit further to Denver. This year the governor is attending, energy professionals and environmental defense fund representatives. Prominent business professionals will have a panel and Q&A. This is not a trade event; attendees can mix with speakers and panelists. It’s meant to be a dialogue. It’s an open exchange. The CSE asked: Is there a way to transition this event to Vail? The answer was it depends on the type of events going on simultaneously. Producer will work on transitioning the location of the event to Vail for 2015. 1/21/2014 TOV/CSE Minutes January 15, 2014 Page 5 of 6 The event itself sells the entire region – not just the one city. They would like to have more sessions in town. This is a great networking opportunity for attendees. There is also a lot of impact on Vail lodging, events, transportation and shopping. Currently the largest contributing entity is Vail Resorts. c. DiscoverWell: Vail Living Well Summit: September 11-13, 2014 Request: $35,000 Steve Tucker addressed the group; stating that he represents Living Well and serves as their marketing and branding consultant from NYC. John and Jamie Stone, the founders were unable to attend. The event is trying to become more consumer based. This will be the 3rd annual event and will feature around 100 speakers. The event focuses on evidence based programming and serves as a spotlight for innovation and technology. They are actively looking for someone or a company to launch a product or service at the event. The event serves as a great client business development atmosphere, by leveraging the meetings within the setting. Work with different vendors to spread the event around Vail. This year the subject matter focuses on corporations and corporation support of well-being along with traditional consumer programming. Total available funding: $75,000 Vail Symposium: January-March 2014. Grid Score received: 396 out of a possible 600.  Request: $50,000  Recommended $37,500  Motion required to approve funding in the amount of $37,500 for the Vail Symposium. M/S/P: Kundolf/Bank/Unanimous- The motion passed 6-0 Vail Global Energy Forum: February 28-March 2, 2014 Grid Score received: 375 out of a possible 600.  Request: $10,000  Recommended - $7,500  Motion required to approve funding in the amount of $7,500 for the Vail Global Energy Forum. M/S/P: Kundolf/Bank/Unanimous- The motion passed 6-0  DiscoverWell: Vail Living Well Summit: September 11 -13, 2014 Grid Score received: 411 out of a possible 600.  Request: $35,000  Recommended $30,000  Motion required to approve funding in the amount of $30,000 for the Vail Living Well Summit. M/S/P: Kundolf/Bank/Unanimous- The motion passed 6-0 1/21/2014 TOV/CSE Minutes January 15, 2014 Page 6 of 6 Total funds allocated under the TIER IV Category: $90,000 (including Starting Hearts for $15,000, which was allocated as part of the Town of Vail 2014 Budget approval in October 2013.)  New Business and Community Input: None.  Motion to adjourn @ 10:17 a.m. M/S/P: Kundolf/Davis/Unanimous- The motion passed 6-0 Next Regular CSE Meeting: Wednesday, February 5, 2014 @ 8:30 a.m. Vail Town Council Chambers 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 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: update on pending litigation. PRESENTER(S): Kendra Carberry 1/21/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: January 21, 2014 ITEM/TOPIC: Adjournment (4:30 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 4, 2014 IN THE VAIL TOWN COUNCIL CHAMBERS FUTURE AGENDA ITEMS: Ongoing agenda items TBD: DRB/PEC updates - Warren - WS - 15 min.; Information Updates Attachments: WS - 15 min.; Executive Session items: 30 min.; Consent Agenda: 5 min.; Town Manager Report: 5 min. FUTURE AGENDA ITEMS: Timber Ridge Transfer from TRAHC to TOV - ES - George - 2/4 Commercial Ski STorage Update - ES - George - 2/4 I70 Underpass CDOT IGA - ES - Tom - 2/4 CIRSA Council Training - WS - Matt - 2/4 2015 VVF Council Update - ES - 2/18 Vail Competitiveness Benchmarks Discussion and Next Steps - WS - 2/18 RRC Attendance Survey - WS - 30 min. - 2/18 Wall Street Call-Up - WS & ES - 2/18 Commercial Ski Storage Ordinance 1st reading - ES - 3/4 Commercial Ski Storage Ordinance 2nd reading - ES - 3/18 Clean Up Title 12 Ordinance - TBD Plastic bags - TBD Village Information Center - Greg - TBD Fee Schedule changes - George - TBD Neighborhood Speed Control - TBD - Greg/Dwight Housing Strategic Plan - George - TBD Beaver policy update - Kristen - WS - TBD Vail Valley Medical Center Master Plan Update - 60 min - ES - George - TBD EHU Housing Authority - TBD 2015 WAC construction restrictions discussion - 30 min - WS- George - TBD Sister City discussion - TBD Discussion of future of RSES - TBD Streaming PEC & DRB - TBD 2015 Expectations/Legacy Piece - TBD Update on I-70 noise right lane use - TBD CDOT/Simba Run Agreement - TBD 2015 Town-wide fulfillment - TBD VLMD Term limits - TBD Marijuana policy discussion - WS - Matt - TBD ERWSD Waste Management Plan - TBD 1/21/2014