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HomeMy WebLinkAbout2011-0425 PEC0 � PLANNING AND ENVIRONMENTAL COMMISSION April 25, 2011 TOWN OF VAIL' 1:00pm TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 30 minutes A request for a recommendation to the Vail Town Council, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12 -26, Exactions and Dedications, Vail Town Code, to allow for the creation of regulations for mitigation of development impacts, and setting forth details in regard thereto. (PEC100050) Applicant: Town of Vail Planner: George Ruther / Rachel Dimond ACTION: MOTION: SECOND: VOTE: 30 minutes 2. A request for a recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. (PEC110018) Applicant: Town of Vail, represented by the Vail Local Housing Authority Planner: Nina Timm /Rachel Dimond ACTION: MOTION: SECOND: VOTE: 5 minutes 3. A request for a final recommendation to the Vail Town Council for prescribed regulations amendments to Title 12, Zoning Regulations and Title 14, Development Standards, Vail Town Code, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to provide regulations that will implement sustainable building and planning standards, and setting forth details in regard thereto. (PEC090028) Applicant: Town of Vail Planner: Rachel Friede ACTION: Table to June 13, 2011 MOTION: SECOND: VOTE: 4. Approval of April 11, 2011 minutes MOTION: SECOND: VOTE: 5. Information Update 6. Adjournment MOTION: SECOND: VOTE: The applications and information about the proposals are available for public inspection during regular office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call (970) 479 -2138 for additional information. Sign language interpretation is available upon request with 24 -hour notification. Please call (970) 479 -2356, Telephone for the Hearing Impaired, for information. Community Development Department Published April 22, 2011, in the Vail Daily. Page 1 0 ) rowN of vain TO: Planning and Environmental Commission FROM: Community Development Department DATE: April 25, 2011 Memorandum SUBJECT: A request for a recommendation to the Vail Town Council, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12 -26, Exactions and Dedications, Vail Town Code, to allow for the creation of regulations and procedures for mitigation of development impacts, and setting forth details in regard thereto. (PEC100050) Applicant: Town of Vail Planner: George Ruther/ Rachel Dimond SUMMARY The applicant, the Town of Vail, is requesting a work session on a text amendment to Title 12, Zoning Regulations, Vail Town Code, to establish Chapter 12 -26, Exactions and Dedications. The purpose of this new chapter is to provide the legal framework for administering the Town's mitigation of development impacts requirements. Based on the criteria and findings outlined in this memorandum and the testimony and evidence presented at the hearing, the Community Development Department recommends the Planning and Environmental Commission forward a recommendation of approval to the Vail Town Council for this item. A draft copy of Ordinance No. 4, Series of 2011, is attached for review (Attachment A). II. DESCRIPTION OF REQUEST The proposed amendments will establish a new chapter to Title 12, Zoning Regulations, entitled " Chapter 12 -26, Exactions and Dedications The purpose of this chapter is to: • Clarify existing regulations and policies on exactions and dedications; • Establish expectations regarding the need to mitigate development impacts at the beginning of the development review process; • Ensure a review process that is consistent, predictable and equitable; • Clarify the review criteria and findings necessary for requiring exactions and dedications; • Establish the procedure for determining the impacts of a development that must be mitigated, as quantified and applied to development projects through rational nexus studies; • Identify exactions and dedications that are necessary for achieving the development objectives of the Town; • Protect the health, safety and welfare and to ensure the orderly and viable growth of the community; • Provide a mechanism to ensure adequate public facilities, open space, recreational opportunities and other amenities and facilities conducive to a desirable community; • Promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets; and • Conserve and maintain established community qualities and economic values. The proposed Chapter 12 -26 includes the following components: • Policy statements on the requirement of exactions or dedications; • Definitions of terms applicable to the implementation of the new chapter; • Outline of the legal authority for the requirement of dedications and exactions; • Criteria for reviewing exactions and dedications, whether they are fees, dedication of land, or provision of infrastructure or services; • Findings to be made by the reviewing authority (Planning and Environmental Commission or Town Council) when approving development applications; and • A process for accepting dedications. The proposed language is located in Ordinance No. 4, Series of 2011 (see Attachment A). III. BACKGROUND On January 10, 2011, Staff held a work session with the Planning and Environmental on the proposed text amendments. The PEC directed Staff to come back with another work session to discuss the background of this item. On February 14, 2011, a second work session was held with the Planning and Environmental Commission to discuss the background of the proposed text amendments. The Commissioners recommended the following changes: 1. Provide a definition of infrastructure, facilities and services. 2. Provide a list of the types of mitigation that may be required. 3. Remove references to "but for" in the criteria section. Staff reviewed the requested amendments with the Town Attorney, who advised Staff not to include the amendments in the proposed ordinance. However, should the PEC wish to recommend these amendments that are not reflected in the proposed Town of Vail Page 2 regulations below, sample language is included with potential modifications in Section VIII of this memorandum. The Commissioners also requested the following examples of projects and their requirement mitigation: STRATA- Required Mitigation of Development Impacts Public Art: $70,000 Transportation: $273,000 Employee Housing: 12,665 sq ft of EHUs FOUR SEASONS- Required Mitigation of Development Impacts Public Art: Public art piece with no monetary value required was built on site within view of right -of -way Transportation: Roadway and streetscape improvements adjacent to site plus $200,000 Employee Housing: 56 employee beds (all built on site) RITZ CARLTON- Required Mitigation of Development Impacts Public Art: $100,000 of public art required on -site Transportation: Roadway and streetscape improvements adjacent to site, all fees waived Employee Housing: 10 employee beds IV. DISCUSSION ITEMS What are the impacts of development to local governments? Impacts of development vary widely among projects. Generally, development may affect population concentration, traffic patterns, use of public facilities (e.g., schools, parks), need for public services, utility use and infrastructure needs. Why do local governments require the mitigation of development impacts? • Providing all infrastructure, facilities and services that become necessary due to new development may be cost prohibitive for a municipality, due to a variety of financial and political factors. • Anticipating new development by providing infrastructure can be a misuse of limited resources. • Special Development Districts limit the ability to foresee future development as each project creates its own unique development standards. • State and federal funding for infrastructure and capital projects has been limited by budget cuts, placing more financial burden on local municipalities. • Existing residents may not want to share costs for new development, and typically oppose tax increase ballot initiatives to pay for infrastructure associated with such development. What is the legal framework that allows local governments to require the mitigation of development impacts? Town of Vail Page 3 Communities may require dedications and impose exactions on the granting of land -use approvals, provided that there is an essential nexus between the exaction or dedication and a legitimate local government interest, and provided that the dedication or exaction is roughly proportional, both in nature and extent, to the impact of the proposed use or development. Case law and regulations that permit mitigation requirements include two historic land use law cases, Nollan v. California Coastal Commission, 483 U.S. 825 (1987) and Dolan v. City of Tigard, 512 U.S. 374 (1994), as well as Colorado Revised Statutes § 29 -20 -203: Conditions on Land Use Approval, and related case law. What types of mitigation may be required? The following is a general list of exactions and dedications that may be required with the approval of a development project: • Cultural/ Social/ Tourism (public plazas, event venues, conference facilities, etc.) • Fire (impact fees to pay for increased services and equipment, etc.) • Housing (new employee housing, deed restrictions on existing properties, etc.) • Law enforcement (impact fees to offset increased services, etc.) • Parking (new spaces, parking structures, fee -in -lieu payments, etc.) • Public Art (on -site art installations, impact fees to pay for public programs, etc.) • Recreation /Parks (impact fees to offset increased services, land dedication, new park, public facilities, etc.) • Schools and child care (land dedication, fee -in -lieu payment, etc.) • Streets (new median, additional lanes, land dedication, streetscape improvements, etc.) • Transit (bus stop, private shuttle services, etc.) • Utilities (stormwater, electric, gas, communications, sanitation, recycling, etc.) How do local governments require the mitigation of development impacts? The process of mitigating the impacts of development varies among different communities with different development objectives and goals. On one end of the spectrum, communities may pay for impacts of development through taxes and federal funding. On the other end, developers may pay for all incremental impacts to the community. The policy decision on who pays for impacts can affect future levels of service for infrastructure, facilities and services. The chart below identifies the types of dedications and exactions that may be required by municipalities near Vail: Town of Vail Page 4 Municipality Parking Housing Streets Transit Fire Parks/ Rec Public Art Police Schools Within Eagle County: Eagle County x x x x x x Vail x x x x x x x Avon x x x x x x Minturn x x x x Eagle x x x x x x Within Summit County: Summit Count x x x x x x x x Frisco x x x x Dillon x x x x x Silverthorne x x x x x x x Breckenridge x x x Other Resorts: Aspen x x x x x Steamboat Springs x x x x x Are dedications and exactions for the mitigation of development impacts a tax? No. A tax is monies required for real and personal property or an act, event or occurrence that provides revenue in order to defray the general expenses of government as distinguished from the expense of a specific function or service. Dedications and exactions are considered a type of fee, not a tax. Unlike a tax, a fee is not designed to raise revenue to defray the general expenses of government, but rather is a charge imposed upon persons or property for the purpose of defraying the cost of a particular governmental service, in this case being construction of infrastructure, facilities and services. What is the existing Town fo Vail policy on mitigation of development impacts? The existing policy is to require mitigation of development impacts when there is a rational nexus between cause and effect, as required by state law. Development in Vail is required to pay for the incremental impacts on the community. How does the Town of Vail regulate the mitigation of development impacts? Town of Vail Page 5 • Yes, the Town of Vail requires varying levels of mitigation of development impacts, depending upon the zoning of the development site. • Currently, mitigation of development impacts is required in Public Accommodations 1, Public Accommodations 2, Lionshead Mixed Use 1, Lionshead Mixed Use 2, Ski Base/ Recreation 2 and Special Development Districts. • Mitigation may include deed restricted employee housing, roadway improvements, pedestrian walkway improvements, streetscape improvements, stream tract/bank restoration, loading /delivery, public art improvements, and similar improvements. • Employee housing may be required, in accordance with commercial linkage and inclusionary zoning standards, in the High Density Multiple - Family, Public Accommodation, Public Accommodation 2, Commercial Core 1, Commercial Core 2, Commercial Core 3, Commercial Service Center, Arterial Business, General Use, Heavy Service, Lionshead Mixed Use 1, Lionshead Mixed Use 2, Ski Base /Recreation, Ski Base /Recreation 2, Parking and Special Development Districts. Which development projects in Vail are required to mitigate their impacts? • Mitigation of development impacts may be required for "large scale redevelopment/development projects which produce substantial off site impacts." • Employee housing is required for any project in the applicable zone districts that has a net increase in commercial or residential floor area. Which development projects in Vail are not required to mitigate their impacts? Single- family homes. Projects in low density zone districts. Projects that do not generate net new employees in commercial space. Will the proposed amendments change the Town of Vail's development policies? No. The proposed regulations will not change existing policy. Will the proposed amendments change the Town of Vail's development review procedures? Yes. The proposed regulations will change current procedural practice with the establishment of criteria and findings when determining that mitigation of development impacts is required. The changes to review procedures will clarify expectations that development pays for some impacts to infrastructure, facilities and services and creates an equitable, predictable and consistent process for determining an exaction or dedication. However, the outcome of requirements will remain the same. Will the proposed amendments change the Town of Vail's development impact standards? No. Requirements for development to pay for impacts to infrastructure, facilities and services will remain the same. The following chart details how the proposed regulations Town of Vail Page 6 would affect mitigation of development impacts for a project in Vail, using Strata as an example: Exactions and Dedications Existing Regulations Proposed Regulations Public Art $70,000 $70,000 Transit $273,000 $273,000 Employee housing 12,665 sq ft of EHUs 12,665 sq ft of EHUs How are development affected by development impact mitigation requirements? According to "Development Fees and Employment," a study conducted by the University of Oklahoma and Florida State University, clear expectations of exactions and dedications allow developers to anticipate costs. The expectation of exactions and dedications has also been proven to expedite review of projects, as municipalities are less apprehensive to approve development when its impacts are mitigated. While exactions and dedications increase the cost of development, they provide certainty that is shown to increase likelihood of the implementation of projects. How is the Town of Vail affected by development impact mitigation requirements? The same study referenced above notes that exactions and dedications lead to increased jobs in a municipality due to new construction, new employment sectors and funding for schools, parks, fire, and other services. Further, the mitigation of development impacts allows the Town of Vail to defer costs of improving infrastructure, facilities and services to the developer instead of the taxpayer. The Town of Vail also charges a construction use tax that provides funding for capital projects. In 2011, the Town of Vail has over $3 million in maintenance costs and $17 million in capital improvement needs. Funding sources include but are not limited to construction use tax (estimated $500K), TIF funding from Lionshead ($8.5M), and traffic impacts fees ($390K balance). However, this does not include an extensive list of unfunded projects that were cut to balance the budget, including over $18 million in high priority projects. The Town continues to pay for extensive capital improvements, with a small amount of funding coming from development. V. APPLICABLE PLANNING DOCUMENTS Title 12, Zoning Regulations, Vail Town Code 12 -1 -2: PURPOSE: A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the town, and to promote the coordinated and harmonious development of the town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. Town of Vail Page 7 B. Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. Colorado Revised Statutes 29 -20 -203. Conditions on land -use approvals. (1) In imposing conditions upon the granting of land -use approvals, no local government shall require an owner of private property to dedicate real property to the public, or pay money or provide services to a public entity in an amount that is determined on an individual and discretionary basis, unless there is an essential nexus between the dedication or payment and a legitimate local government interest, and the dedication or payment is roughly proportional both in nature and extent to the impact of the proposed use or development of such property. This section shall not apply to any legislatively formulated assessment, fee, or charge that is imposed on a broad class of property owners by a local government. (2) No local government shall impose any discretionary condition upon a land -use approval unless the condition is based upon duly adopted standards that are sufficiently specific to ensure that the condition is imposed in a rational and consistent manner. VI. CRITERIA AND FINDINGS The Vail Town Code prescribes the process, criteria, and findings for reviewing a proposed prescribed regulations amendment. In reviewing an application of this type, the Planning and Environmental Commission and Vail Town Council shall consider the following factors with respect to the requested text amendment: (1) The extent to which the text amendment furthers the general and specific purposes of the zoning regulations; and Town of Vail Page 8 Staff finds the proposed text amendments further the general purpose of the zoning regulations because by requiring mitigation of development impacts, the text amendment furthers the "general welfare of the town" and promotes "the coordinated and harmonious development of the town... that will conserve and enhance ... its established character as a resort and residential community of high quality." Staff finds the proposed text amendments further the specific purposes of the zoning regulations by providing the catalyst that could fulfill a number of the specific purposes. This includes potential for requiring mitigation in the form of road improvements, transit improvements, new public facilities, rehabilitation and /or preservation of natural areas and other amenities, for example. Staff believes these examples of mitigation further the specific purposes of the zoning regulations, including providing public facilities, securing safety, promoting "safe and efficient pedestrian and vehicular traffic circulation," conservation of "wildlife, streams, woods, hillsides, and other desirable natural features," assurance of "adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters" and "to otherwise provide for the growth of an orderly and viable community." (2) The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and Staff finds the proposed text amendment is compatible with the development objective of the Town to be a "world class mountain resort community." Within that objective lies a general belief that the Town of Vail should have first rate infrastructure, services and facilities. Requiring development projects to mitigate the direct impacts to that infrastructure helps to further this objective. Another development objective of the Town of Vail is to have sustainable fiscal responsibility. Staff finds that the proposed amendments further this goal by placing the financial burden of providing infrastructure and services upgrades on the development projects that necessitate such improvements and associated costs. Staff also finds that the proposed text amendment better implements the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan. Specifically, the mitigation of development impacts furthers the policy objectives of the Lionshead Redevelopment Master Plan and the Vail Village Master Plan, which calls for improved vitality and amenities, improved access and circulation, improved infrastructure and creative financing for enhanced private profits and public revenues. The amendments also further the implementation of Objective 1.3 of the Vail Village Master Plan, stating that the Town should "enhance new development and redevelopment through public improvements done by private developers working in cooperation with the town." The amendments further the goals of the Vail Land Use Plan, most specifically that "Vail should continue to grow in a controlled environment, maintaining a balance Town of Vail Page 9 between residential, commercial and recreational uses to serve both the visitor and the permanent resident." Careful consideration is needed when determining and imposing dedications or exactions on land use applications. In the absence of careful and thoughtful consideration, unintended consequences could negatively impact the otherwise intended objectives of the regulation or the Town. For example, a dedication or exaction maybe properly determined and imposed yet be so financially onerous that the a proposed project is no longer practical. In this case, the Town may need to evaluate the need for the dedication or exaction against other public benefits derived from the project. This is, and will be, an ongoing challenge and consideration the Town needs to carefully and thoughtfully consider. (3) The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and Staff finds that the text amendments show a change in conditions, as the Town Attorney has advised Staff that the proposed language is necessary to provide legal framework for mitigation of development impacts. The existing process and regulations may not be adequate enough to require mitigation or to provide the legal justification for such mitigation. Should the Town be faced with a lawsuit, the proposed text amendments would allow for a stronger legal framework to justify exactions and dedications. Additionally, staff finds that the financial sustainability and viability of the Town is critical to the continued success of the community. The proposed amendments place the financial burden of providing infrastructure and services upgrades on the development projects that necessitate such improvements and associated costs. They do this in a way that the dedication or exaction required is roughly proportional both in nature and extent to the impact of the proposed use or development of such property on the community. (4) The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and As previously stated, the mission statement of the Town of Vail is to be a "world class mountain resort community." In order to achieve that mission, the Town needs to have infrastructure, facilities and services that match the level of development that is and will occur in Vail. Further, over the course of the recent redevelopment in Vail, the Town has come to fully understand that redevelopment needs to pay for more services in order to maintain the high levels of service that are a part of the Town's municipal development objectives. In the absence of a predicable and equitable exaction and dedication requirement, it can be reasonably assumed that the Town shall bear the financial burdens resulting from new development thus Town of Vail Page 10 jeopardizing the likelihood that the Town can continue to grow in a viable, orderly, harmonious and convenient manner. (5) Such other factors and criteria the planning and environmental commission and /or council deem applicable to the proposed text amendment. VII. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12 -26, Exactions and Dedications, Vail Town Code, to allow for the creation of regulations and procedures for mitigation of development impacts, and setting forth details in regard thereto. Should the Planning and Environmental Commission choose to forward a recommendation of approval of this request, the Community Development Department recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12 -26, Exactions and Dedications, Vail Town Code, to allow for the creation of regulations and procedures for mitigation of development impacts, and setting forth details in regard thereto." Should the Planning and Environmental Commission choose to forward a recommendation of approval with modifications to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission include the following modifications in the motion: "The Planning and Environmental Commission recommends the following modifications to the prescribed regulations amendments: 1. Add a definition for infrastructure as follows: Facilities and services needed to sustain industry, residential, commercial and all other land use activities, including but not limited to: parking (new spaces, parking structures, fee -in -lieu payments, etc.), housing (new employee housing, deed restrictions on existing properties, etc.), streets (new median, additional lanes, land dedication, streetscape improvements, etc.), transit (bus stop, private shuttle services, etc.), fire (impact fees to pay for increased services and equipment, etc.), recreation /parks (impact fees to offset increased services, land dedication, new park, public facilities, etc.), public art (on -site art installations, impact fees to pay for public programs, etc.), police (impact fees to offset increased services, etc.), schools (land dedication, fee -in -lieu payment, etc.) and Town of Vail Page 11 any other improvement/dedication /fee required by the reviewing authority based on mitigation of development impacts and authorized by law. 2. Reconfigure the finding in 12- 26 -4A -4 to read as follows: 'If the proposed use or development would not occur, the Town would not be considering either the provision or expansion of the service or infrastructure facility in question." Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission makes the following findings: "Based upon the review of the criteria outlined in Section V of Staff's April 25 2011 memorandum and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12 -1 -2, Purpose, and 12 -13 -1 Purpose, Vail Town Code, and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." VIII. ATTACHMENTS A. Draft Ordinance No. 4, Series of 2011 Town of Vail Page 12 ORDINANCE NO. 4 SERIES 2011 AN ORDINANCE AMENDING TITLE 12, ZONING REGULATIONS, VAIL TOWN CODE, BY THE ADDITION OF A NEW CHAPTER 26, ENTITLED "EXACTIONS AND DEDICATIONS" WHEREAS, to ensure the provision of adequate public services and facilities within the Town, the Town Council wishes to condition land use approvals on certain exaction and dedication requirements; WHEREAS, it is widely recognized that municipalities may impose dedications and exactions on the granting of land use approvals, provided that there is an essential nexus between the exaction or dedication and a legitimate local government interest, and provided that the dedication or exaction is roughly proportional, both in nature and extent, to the impact of the proposed use or development, pursuant to Nollan v. California Coastal Comm'n, 483 U.S. 825 (1987), Dolan v. City of Tigard, 512 U.S. 374 (1994); C.R.S. § 29 -20 -203 and related case law; and WHEREAS, the Town Council finds and determines that the public health, safety, and welfare will be served by adopting regulations delineating the Town's procedure for imposing exactions and dedications. NOW, THEREFORE, BE IT ORDAINED BY THE Town Council of the TOWN OF VAIL, COLORADO, THAT: B. The purpose of this Chapter to provide a mechanism to quantify exactions and dedications in a manner that is roughly proportional both in nature and extent to the impact of the proposed use or development. 12 -26 -2: DEFINITIONS: For purposes of this Chapter, the following terms shall have the following meanings: EXACTION OR DEDICATION: A real property dedication to the Town, a monetary payment in -lieu of a real property dedication, or the Ordinance No. 4, 2011 provision of some other service to the Town to mitigate the impact of a proposed use or development. LAND USE APPLICATION: Any application for a major exterior alteration, new or amended special development district, rezoning, or major subdivision. 12 -26 -3: AUTHORITY TO IMPOSE DEDICATION OR EXACTION REQUIREMENTS: A. The Town Council or Planning and Environmental Commission may impose exactions or dedications in conjunction with any land use application filed with the Town, pursuant to the procedures set forth in this Chapter. 1. A legitimate, identifiable public purpose is served by requiring the dedication or exaction; 2. There is an essential nexus between the required dedication or exaction and the Town's interest in providing the impacted public infrastructure facility or service; 12 -26 -5: DETERMINATION: A. An exaction or dedication imposed by the Town Council or Planning and Environmental Commission shall be roughly proportional, both in nature and extent, to the impact of the proposed use or development. Ordinance No. 4, 2011 2 B. To determine rough proportionality, Town staff shall conduct an exaction and dedication study regarding the proposed use or development. The applicant shall pay for any costs associated with said study prior to a final review of the land use application. Such study shall consider the following: 1. Whether the infrastructure facility or service provided for by the exaction or dedication would be required but for the proposed use or development; 2. The extent to which the proposed use or development will impact the existing services or infrastructure facilities; 5. The extent to which the Town's existing infrastructure facilities and services would need to be expanded or improved to maintain the status quo. 41L 1 MR& C. The applicant, at its sole cost, may prepare and submit a second exaction and dedication study to the Town. Any such study shall contain the information described in Subsection B hereof. Town staff shall review the applicant's study and shall provide comment thereon to the Planning and Environmental Commission or Town Council. In its sole discretion, the Planning and Environmental Commission or Town Council may, but is not obligated to, rely on any portion of the applicant's study. D. If the Planning and Environmental Commission is the final decision maker, after a public hearing, consideration of the exaction and dedication study or studies, and consideration of the criteria listed in Section 12- 26-4, the Planning and Environmental Commission shall make a determination on the appropriate exaction or dedication for the proposed use or development. E. If the Town Council is the final decision maker, the Planning and Environmental Commission shall first hold a public hearing to consider the exaction and dedication study or studies and the criteria listed in Section 12 -26 -4, and shall make a recommendation to the Town Council concerning the appropriate exaction or dedication for the proposed use or development. The Town Council shall then hold a public hearing to consider the dedication or exaction study or studies, the recommendation of the Planning and Environmental Commission, and the criteria listed in Section 12 -26 -4, and the Town Council shall determine the appropriate exaction or dedication for the proposed use or development. Ordinance No. 4, 2011 3 F. A decision of the Planning and Environmental Commission may be appealed to the Town Council, pursuant to this Title. A decision of the Town Council shall be final, subject only to judicial review. Section 2 . If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 3 . The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. repealed. Im INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED Attest Lorelei Donaldson, Town Clerk Richard D. Cleveland, Mayor Ordinance No. 4, 2011 4 TOWN OF 0 ) VAIL Memorandum TO: Planning and Environmental Commission FROM: Community Development Department DATE: April 25, 2011 SUBJECT: A request for a recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. (PEC110018) Applicant: Town of Vail, represented by the Vail Local Housing Authority Planner: Rachel Dimond / Nina Timm I. SUMMARY The applicant, the Town of Vail, represented by the Vail Local Housing Authority, is requesting a recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. Based upon Staff's review of the criteria outlined in Section VII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Commission forwards a recommendation of approval subject to the findings noted in Section V of this memorandum. Attached for review is a draft version of Ordinance No. 4, Series of 2011 (see Attachment A). II. DESCRIPTION OF THE REQUEST Some employee housing unit deed restrictions in the Town of Vail do not require an employee to occupy the unit. Further, extensive Staff resources are utilized for enforcement with employee housing deed restrictions. The Town created an EHU Exchange Program to increase the number of employee occupied units while reducing Town resources spent on enforcement. However, this program has not been utilized, in part, because of the onerous nature of the exchange. Specifically, in order to remove a deed restriction, an owner would have to convey a dwelling unit that the Town would then deed restrict and sell or rent at the Town's benefit with no payment to the owner. The goals of the proposed text amendments are: • To ensure there is deed restricted employee housing for 30% of Vail's workforce • Turn non - performing /unoccupied EHUs into performing /occupied EHUs • Provide additional options for EHU exchanges to improve participation in the program • Improve compliance with EHU deed restrictions The existing exchange program regulations allow existing deed restricted employee housing to have the deed restriction removed in exchange for giving the Town of Vail a dwelling unit fee simple for the purpose of placing a deed restriction on that dwelling unit and housing employees through the resale or rental of that employee housing unit. According to the existing regulations, up to 20% of the required exchange square footage may be paid by fee -in -lieu. The proposed regulations create two new options for the exchange program: 1. Partial or full cash fee -in -lieu payment 2. Allow owners to keep proposed EHU instead of deeding unit to the Town of Vail for rental or resale At their April 11, 2011 hearing, the Planning and Environmental Commission recommended amendments to the proposed regulations including addressing the 31 units that are deed restricted units that were not referred to as employee housing units, a 100% pay in lieu option, an option that includes the ability to bank excess square feet and a proposal to allow for leeway on square feet for the proposed EHU by allowing the proposed EHU to be 90% of the required size without additional payment. After extensive consideration of these issues and potential amendments, Staff included an amendment to the definition of exchange EHU in order to address the 31 units that are not clearly included in that definition. Further, Staff kept the 100% pay -in -lieu option as was initially proposed. Staff does not recommend a bank for excess square footage in a proposed EHU to be applied to future exchanges. Further, Staff does not recommend allowing proposed EHUs to be smaller than the requirement without a fee -in -lieu payment for the remainder of the required square footage. However, should the PEC wish to recommend these amendments that are not reflected in the proposed regulations below, sample language is included with potential modifications in Section VIII of this memorandum. The proposed regulation amendments are as follows (text that is to be added is bold italics): 12 -13 -5: Employee Housing Unit Deed Restriction Exchange Program: Town of Vail Page 2 A. Purpose: The purpose of this Section is to provide occupied livable, affordable employee housing units within the Town of Vail through the establishment of an employee housing unit deed restriction exchange program. The exchange program allows the Town Council to release of a deed restriction from an existing employee housing unit in exchange for the- n ° of a mree maFket unit wp of Vag to ho deed ,estr;Gte the placement of an ��� � r v v iv�acca r c�c r n.ccc r employee housing deed restriction on another dwelling unit and/ or a fee - in -lieu payment made to the Town of Vail. B. Applicability: The program established under this Section applies to existing employee housing units. This shall not apply to any existing employee housing unit that is already price appreciation capped or any employee housing unit established to meet the on -site employee mitigation requirements of Chapter 12 -23, Commercial Linkage, or Chapter 12 -24, Inclusionary Zoning, or as part of an approved development plan. C. Definitions: For the purpose of this Section: Commercial Job Core: Those areas located south of Interstate 70, east of the intersection of Forest Road and South Frontage Road, north of Vail Mountain, and west of the Town of Vail Soccer Fields on Vail Valley Road, as further defined by Exhibit A in this Section. Exchange EHU: The existing non -price appreciation capped employee housing unit or other unit with an employee housing deed restriction that is being proposed to have the deed restriction released as part of this program. Proposed EHU: The existing dwelling unit that is being proposed to receive an be eep� the Tb ,n of V for the . a Pety employee housing deed restriction as part of this program. D. General Requirements: The Town Council may approve the removal of an employee housing deed restriction from an existing employee housing unit in exchange for the placement of an employee housing deed restriction on to another dwelling unit, and /or the payment of a fee -in -lieu. Exchange EHU requirements: a. The exchange EHU shall not be part of any employee housing project developed or deed - restricted (in part or in whole) by the Town of Vail. b. The exchange EHU shall not be part of any on -site employee housing mitigation required by inclusionary zoning, commercial linkage, or as part of an approved development plan. c. The property that includes the exchange EHU shall comply with the prescribed development standards (density controls including GRFA and number of units, site coverage, landscaping and parking requirements, etc.), as outlined in the applicable zone district section Town of Vail Page 3 of Title 12, Zoning Regulations, Vail Town Code, upon exchange of the deed restrictions. 2. Proposed EHU requirements: a. The proposed EHU(s) shall be located within the Town of Vail. b. The proposed EHU(s) shall be within a homeowners association that does not preclude deed restricted units, does not have a right of first refusal, does not have right to approve the sale or the sale contract, or have any other requirements deemed to be similarly restrictive by the Administrator. c. The proposed EHU shall comply with the minimum size requirements shown in Table 13 -2. TABLE 13 -2: MINIMUM SIZE OF PROPOSED EHUs Type Of Unit Minimum Size GRFA Studio 438 square feet 1 bedroom 613 square feet 2 bedroom 788 square feet 3+ bedrooms 1,225 square feet d. The proposed EHU shall contain a kitchen facility or kitchenette and a bathroom. e. The property on which the proposed EHU is located shall comply with Chapter 12 -10, Off - Street Parking and Loading, Vail Town Code. The proposed EHU shall have its own entrance. There shall be no interior access from the proposed EHU to any dwelling unit to which it may be attached. 3. Exchange Rate for Proposed EHUs: a. If the exchange EHU(s) is within the commercial job core and the proposed EHU(s) is also within the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two (2) times the gross residential floor area (GRFA) of the exchange EHU. b. If the exchange EHU is within the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of three (3) times the gross residential floor area (GRFA) of the exchange EHU. C. If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is inside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of one and one -half (1.5) times the gross residential floor area (GRFA) of the exchange EHU. Town of Vail Page 4 d. If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two (2) times the gross residential floor area (GRFA) of the exchange EHU. 45. No Credit Given: If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in Subsection D3 above, the additional gross residential floor area (GRFA) be eligible for use as any form of future credit or for the Commercial Linkage or Inclusionary Zoning employee housing mitigation banks established by Sections 12 -23 -7 and 12 -24 -7, Vail Town Code. NOTE: Should the PEC wish to amend the section above, potential regulations for a mitigation bank are in a list of potential modifications in Section Vlll of this memorandum. . , Iffargrin 1111"M -_ ._ 45. No Credit Given: If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in Subsection D3 above, the additional gross residential floor area (GRFA) be eligible for use as any form of future credit or for the Commercial Linkage or Inclusionary Zoning employee housing mitigation banks established by Sections 12 -23 -7 and 12 -24 -7, Vail Town Code. NOTE: Should the PEC wish to amend the section above, potential regulations for a mitigation bank are in a list of potential modifications in Section Vlll of this memorandum. �..::.e ­­A - - - 5. Fee -In -Lieu: The applicant may elect to provide a fee -in -lieu payment to the Town of Vail for any portion of the required square footage not provided by a proposed EHU. The town shall only use monies collected from the fees in lieu to provide new employee housing. The applicant shall pay a fee -in -lieu equal to the following formulas: Existing EHU sq ft x multiplier x Inclusionary zoning fee = Fee -in -Lieu Payment a. If the exchange EHU was approved prior to July 22, 1994 and has a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees...," the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for Inclusionary zoning fee -in -lieu] x 1 Town of Vail Page 5 Iffargrin 1111"M -_ ._ �..::.e ­­A - - - 5. Fee -In -Lieu: The applicant may elect to provide a fee -in -lieu payment to the Town of Vail for any portion of the required square footage not provided by a proposed EHU. The town shall only use monies collected from the fees in lieu to provide new employee housing. The applicant shall pay a fee -in -lieu equal to the following formulas: Existing EHU sq ft x multiplier x Inclusionary zoning fee = Fee -in -Lieu Payment a. If the exchange EHU was approved prior to July 22, 1994 and has a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees...," the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for Inclusionary zoning fee -in -lieu] x 1 Town of Vail Page 5 b. If the exchange EHU was approved after July 22, 1994 and /or does not have a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees... ", and If the exchange EHU is outside of the commercial job core, the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 2 C. If the exchange EHU was approved after July 22, 1994 and /or does not have a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees...". and is within the commercial job core, the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 3 E. Fees: The Town Council shall set an application fee schedule sufficient to cover the cost of Town Staff time and other expenses incidental to the review of the application. The fee shall be paid at the time of the application, and shall not be refundable. F. Review Process: Submittal Requirements: The Administrator shall establish the submittal requirements for an Employee Housing Deed Restriction Exchange application. A complete list of the submittal requirements shall be maintained by the Administrator and filed in the Community Development Department. Certain submittal requirements may be waived and /or modified by the Administrator and /or the reviewing body if it is demonstrated by the applicant that the information and materials required are not relevant to the proposed exchange. The Administrator and /or the reviewing body may require the submission of additional materials if deemed necessary to properly evaluate the application. 2. Review Procedures: a. Administrator Review: The Administrator shall review the application for completeness and compliance with this Section, and shall make a determination of completeness and compliance with this Section within fourteen (14) days of application submittal. Should the Administrator deem that the application is incomplete or not in compliance with this Section, the Administrator shall deny the application. Should the Administrator deem the application is both complete and in compliance with this Section, the Administrator shall forward the application for review by the Vail Local Housing Authority. Town of Vail Page 6 b. Vail Local Housing Authority Review: The review of a proposed Employee Housing Deed Restriction Exchange application shall be held by the Vail Local Housing Authority at a regularly scheduled meeting. A report of the Community Development Department Staff's findings and recommendations shall be made at the formal hearing before the Vail Local Housing Authority. Within twenty (20) days of the closing of a public hearing on a proposed amendment, the Vail Local Housing Authority shall act on the application. The Authority may recommend approval of the application as initiated, may recommend approval with such modifications as it deems necessary to accomplish the purposes of this Title, or may recommend denial of the application. The Authority shall transmit its recommendation, together with a report on the public hearing and its deliberations and findings, to the Town Council. c. Town Council Review: Upon receipt of the report and recommendation of the Authority, the Town Council shall set a date for hearing within the following thirty (30) days. Within twenty (20) days of the closing of a public hearing on the application, the Town Council shall act on the application. The Town Council shall consider but shall not be bound by the recommendation of the Vail Local Housing Authority. The Town Council may approve, either in accordance with the recommendation of the Vail Local Housing Authority or in modified form, or the Council may deny the application. d. Appeal: Administrator and Town Council decisions may be appealed in accordance with the provisions in section 12 -3 -3, "Appeals ", of this title. 3. Criteria and Findings: a. Criteria: Before acting on an Employee Housing Deed Restriction Exchange application, the Vail Local Housing Authority and Vail Town Council shall consider the following criteria with respect to the application: (1) The proximity and accessibility of the proposed EHU(s) to the Commercial Job Core and public transportation, and (2) The size of the proposed EHU(s) in relation to the minimum employee housing unit sizes established for Commercial Linkage mitigation in Section 12 -23 -3, Vail Town Code, and (3) The effect of any homeowners association dues or maintenance fees imposed upon the proposed EHU(s) on the affordability of the proposed unit for an employee, and (4) The correlation between any homeowners association fees imposed upon the proposed EHU(s) and the services and amenities provided by the homeowners association. (5) The extent to which the exchange is consistent with the applicable elements of the adopted goals, objectives and policies Town of Vail Page 7 outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and (6) The extent to which the exchange presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives; and (7) The extent to which the exchange provides for the growth of an orderly viable community and serves the best interests of the community as a whole. b. Necessary Findings: Before recommending and /or granting an approval of an Employee Housing Deed Restriction Exchange application, the Vail Local Housing Authority and the Vail Town Council shall make the following findings with respect to the application: (1) The application meets the general requirements of Section 12- 13 -5D, Vail Town Code, and (2) The application 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 (3) The application furthers the general and specific purposes of the zoning regulations, Section 12 -1 -2, Vail Town Code, and the employee housing regulations, Section 12 -13 -1, Vail Town Code, and (4) The application promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. III. BACKGROUND On January 2, 2009, the Vail Town Council adopted the Employee Housing Unit Exchange Program. The program allows owners of deed restricted employee housing units (EHU) to exchange the existing deed restricted unit for another unit elsewhere in the Town of Vail. The program applies to all non - appreciation capped, deed - restricted employee housing units in Vail that are attached to a private residence and are not required by the Town's Zoning Regulations to mitigate a development's impact. There are currently 699 deed restricted employee housing units in Vail. There are numerous variations within each of the restrictions. Generally, there are five categories of restrictions based on the time the restriction was recorded. 1. Deed Restriction: not required to rent or provide annual verification 2. Deed Restriction: not required to rent and must provide annual verification 3. Deed Restriction: required to rent and required to provide annual verification 4. Deed Restriction: required to rent and provide notarized affidavit annually Town of Vail Page 8 5. Deed Restriction: required to be owner - occupied, appreciation capped and provide annual verification By the Numbers: • 31 EHUs are not required to be rented or provide annual verification • 22 EHUs are not required to be rented and must provide annual verification • 81 EHUs are owner - occupied and appreciation capped • 45 EHUs are owned by the Town of Vail • 108 EHUs are required to mitigate development impacts • 198 EHUs are at Timber Ridge Village Apartments • 142 EHUs are at Middle Creek Village Apartments Approximately 125 EHUs are eligible to participate in the Employee Housing Deed Restriction Exchange Program. Included in the 125 are 53 EHUs that are not required to be employee occupied. The current Exchange Program does not take into account the "reduced value" to the Town of Vail of those particular deed restrictions. As of April 11, 2011, the program has not fulfilled the goal of converting non - performing EHUs into employee occupied, performing EHUs in Vail, as no one has utilized the program. If no action is taken, this will likely continue to be the scenario, with no participants in the program. This will further exacerbate the underlying problem of EHU enforcement. Each year, Staff confirms compliance with the deed restriction through an annual affidavit by EHU owners. However, the validity of certain information within the affidavits has been called into question. Further, Town resources spent on the affidavit process could be spent elsewhere if employee housing deed restrictions could be lifted from non - performing EHUs. On February 3, 2011, the Vail Town Council received a letter from a Vail property owner requesting an amendment to the program to provide an additional method of exchange. Based upon the letter and the fact that no one has utilized the program, Staff presented proposed amendments at the Vail Town Council public hearing on March 1. Town Council requested recommendations on the following proposals: 1. An exchange rate for units approved prior to Ordinance No. 14, Series of 1994, that do not require the EHU to be occupied; and 2. A proposed method of exchange that may be financially more practical for a local EHU owner to utilize the exchange program. The Town Council requested Staff present the proposed amendments to the VLHA and include their recommendation(s) in any proposed amendments. The Vail Local Housing Authority met on March 23 and April 12, 2011 and made recommendations for the proposed amendments that are outlined in Section IV of this memorandum. Town of Vail Page 9 On April 11, 2011, the Planning and Environmental Commission held a hearing on this item. The PEC tabled the item with a request that Staff come back with proposed amendments addressing the 31 units similar to Mr. Aasland's, 100% pay in lieu, an option that includes the ability to bank excess square feet, a proposal to allow for leeway on square feet for the proposed EHU and a recommendation from the Vail Local Housing Authority. IV. PROS AND CONS The following are pros and cons for adopting the proposed regulations: PROS: • Allows removal of non - performing EHUs in exchange for EHUs that actually house employees • Creates a partnership with the community for the creation of more performing EHUs • Allows Town resources to be used more effectively for compliance instead of enforcement • Provision of cash to the Town of Vail will allow the Town to deed restrict a wider variety of unit types • Reduces disincentives to building EHUs for owners concerned about the deed restriction being tied to the land, not the improvements CONS: Allows deed restrictions to be removed from the commercial core, which could reduce the dispersal of EHUs throughout the town and further concentrate EHUs in less expensive neighborhoods The proposed program would allow EHU owners to pay their way out of their employee housing commitment Due to changes in GRFA requirements, EHUs that are eliminated in the commercial job core will not likely be replaced in a similar location V. VAIL LOCAL HOUSING AUTHORITY RECOMMENDATION At the March 1, 2011 Vail Town Council public hearing, the Town Council requested the Vail Local Housing Authority (VLHA) provide a recommendation regarding proposed changes to the Employee Housing Deed Restriction Exchange Program, 12 -13 -5, Vail Town Code. The VLHA met on March 23 and April 12 to discuss proposed amendments as well as the Planning and Environmental Commission's (PEC) input from the PEC's April 11 public hearing. The VLHA recommends amending the Exchange Program in order to increase the number of occupied employee housing units and moving the Town closer to fulfilling its goal of providing deed restricted employee housing for at least 30% of Vail's workforce within the Town of Vail. At the March 23, 2011 VLHA Meeting, the VLHA: Town of Vail Page 10 • Affirmed that allowing existing EHU owners to exchange a non - performing EHU is a win -win for the Town, the existing EHU owner, and employees • Recognized the Exchange Program is an efficient use of Town resources • Unanimously recommended adding additional methods of exchanging EHUs in order to convert non - performing EHUs into performing EHUs • Recommends adding two new methods of exchanging an EHU • A full cash payment option • A deed restriction relocation option At the April 12, 2011 VLHA Meeting, the VLHA: • Re- affirmed that a successful Exchange Program is an efficient tool for the conversion of non - performing EHUs into performing EHUs • Acknowledged that no EHU owner is ever compelled to use the Exchange Program and that each EHU owner that does utilize the Exchange Program will be motivated by their personal reasons to participate in the Exchange Program • Discussed the PEC's recommendations on proposed amendments • Re- affirmed that a cash payment option is an important option to maintain o Any funds collected shall be placed in a dedicated fund and be timely spent establishing new EHUs in Vail • The decision to make a cash payment is up to the existing EHU owner • Cash payments allow for an exact exchange with no credits remaining • There will always be a need for funds • Buy -down existing units so they are not converted to second homes • Opportunities to create new units in the future • By allowing a cash payment option of 1 % to 100% there is no need to create a separate "bank" program o Existing EHU owners may choose to relocate the EHU and provide a unit that is the size they determine is most effective for them • If the unit is smaller than required they will pay a fee -in -lieu for the difference in required square feet • They may choose a unit that is larger than required because it better meets their needs • Examples: generates more rental income per square foot, costs less per square foot, or meets some other need they have • No credits should be given for square feet in excess of the required square feet o By allowing cash payments and not providing a "bank" program each exchange is completed in one transaction with the Town VI. APPLICABLE DOCUMENTS Staff believes the following documents are relevant to the review of this proposal: Town of Vail Page 11 Title 12, Zoning Regulations, Vail Town Code (in part) 12 -1 -2: Purpose A. General: These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. B. Specific: These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. 12 -13 -1: Purpose: The town's economy is largely tourist based and the health of this economy is premised on exemplary service for Vail's guests. Vail's ability to provide such service is dependent upon a strong, high quality and consistently available work force. To achieve such a work force, the community must work to provide quality living and working conditions. Availability and affordability of housing plays a critical role in creating quality living and working conditions for the community's work force. The town recognizes a permanent, year round population plays an important role in sustaining a healthy, viable community. Further, the town recognizes its role in conjunction with the private sector in ensuring housing is available. VII. REVIEW CRITERIA 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and Town of Vail Page 12 Staff finds the text amendments further the general and specific purposes of the Zoning Regulations. Specifically, the purpose of the text amendments is to exchange non - performing (under - utilized) EHUs for performing EHUs. This in turn will further the Town's goal of providing deed - restricted employee housing for 30% of the workforce. This will further the specific goals of the Zoning Regulations, including conserving and maintaining "established community qualities and economic values," encouraging "a harmonious, convenient, workable relationship among land uses, consistent with municipal development objectives" and "to otherwise provide for the growth of an orderly and viable community." 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and The Town of Vail adopted the Employee Housing Strategic Plan on September 2, 2008 and established the goal "to ensure there is deed restricted housing for at least 30% of Vail's workforce within the Town of Vail." Increasing the number of performing EHUs with the Exchange Program will further the Town's efforts in achieving its adopted goal. As of April 11, 2011, the program has not fulfilled the goal of converting non- performing EHUs into employee occupied, performing EHUs in Vail, as no one has utilized the program. If no action is taken, this will likely continue to be the scenario, with no participants in the program. The current policy has not been effective in increasing the number of occupied EHUs in Vail. The proposed amendments will increase Vail's ability to control the requirements, occupancy, and types of future EHUs. Additionally, the proposed amendments allow the Town the flexibility to provide a wider variety of EHU types than has historically been offered in Vail. The proposed regulations will also further the goal of the Town of Vail to use resources efficiently. Each year, Staff confirms compliance with the deed restriction through an annual affidavit by EHU owners. However, the validity of certain information within the affidavits has been called into question. Further, Town resources spent on the affidavit process could be spent elsewhere if employee housing deed restrictions could be lifted from non - performing EHUs. The proposed regulations will increase the Town's efficiency and occupancy of EHUs. 3. The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and The Exchange Program has not been utilized since it was adopted in January 2009. Staff believes the changes in real estate values since the time when most employee housing units were built and when the EHU Exchange Program was adopted have changed substantially enough to warrant amending the subject regulation. Town of Vail Page 13 Additionally, the current regulations do not reflect the Town's focus on increasing the qualitative aspects of employee housing units. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives. The proposed regulation amendment requires the exchange EHU remain in full compliance with the Town's zoning regulations. This will prevent a property owner from benefiting unfairly from the proposed amendment. EHUs are allowed in all residential zone districts therefor future EHUs will also be in full compliance with the Town's zoning regulations. Therefore, Staff believes the proposed text amendments will facilitate and provide a harmonious, convenient, workable relationship among land use regulations consistent with the Town of Vail master plans and development objectives. 5. Such other factors and criteria the Commission and /or Council deem applicable to the proposed text amendment. VIII. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. Should the Planning and Environmental Commission choose to forward a recommendation of approval of this request, the Community Development Department recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12- 13-5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. " Should the Planning and Environmental Commission choose to forward a recommendation of approval with modifications to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission include the following modifications in the motion: Town of Vail Page 14 "The Planning and Environmental Commission recommends the following modifications to the prescribed regulations amendments: 1. Section 12- 13 -D3, Exchange Rate for Proposed EHUs, Vail Town Code, shall add the following sentence: If the proposed EHU is 90% or more of the required size per the formulas below, no additional fee -in -lieu payment shall be required. 2. Section 12- 13 -D5, No Credit Given, Vail Town Code, shall be stricken and replaced with the following language: Exchange Bank: If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in Subsection D3 above, the additional gross residential floor area (GRFA) may be banked in an EHU exchange bank to be used in the future for a portion of the required square footage of another exchange under this section of the code. Any gross residential floor area (GRFA) in the EHU exchange bank shall not used for Commercial Linkage or Inclusionary Zoning requirements established by Chapters 12 -23 and 12 -24 of this code." Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission makes the following findings: "Based upon the review of the criteria outlined in Section Vll of Staff's April 25, 2011 memorandum and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town, and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12 -1 -2, Purpose, and 12 -13 -1 Purpose, Vail Town Code, and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." IX. ATTACHMENTS A. Draft Ordinance No. 4, Series of 2011 Town of Vail Page 15 ORDINANCE NO. 10 SERIES 2011 AN ORDINANCE AMENDING CHAPTER 12 -13 -5: EMPLOYEE HOUSING DEED RESTRICTION EXCHANGE PROGRAM, VAIL TOWN CODE, TO AMEND THE DEED - RESTRICTION EXCHANGE PROGRAM, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on January 6, 2009, the Vail Town Council adopted Ordinance No. 31, Series of 2008, which established Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, in order to allow owners of employee housing units to remove their deed restriction in exchange for giving the Town of Vail a free market dwelling unit fee simple; and, WHEREAS, since the adoption of Ordinance No. 31, Series of 2008, no property owners have utilized the employee housing deed restriction exchange program; and, WHEREAS, the Town Council finds and determines that the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality, based upon Section 5 of the Staff memorandum dated April 11, 2011; and, NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: The proposed regulation amendments are as follows (text that is to be added is bold italics): Ordinance No. 10, Series of 2011, first reading Section 1 . Section 12- 13 -5A, Purpose, Vail Town Code is hereby amended as follows: A. Purpose: The purpose of this Section is to provide occupied livable, affordable employee housing units within the Town of Vail through the establishment of an employee housing unit deed restriction exchange program. The exchange program allows the Town Council to release of a deed restriction from an existing employee housing unit in exchange for the ^ °"1 °1 °p^° °f ° & °° I m °F'A °* d ^ PW g 6 Pit *° * T11141n °f �i_;l f ° be d ee d r °cfr;i ted the placement of an employee housing deed restriction on another dwelling unit and/ or a fee -in -lieu payment made to the Town of Vail. Section 2 . Section 12- 13 -58, Definitions, Vail Town Code is hereby amended as follows: B. Definitions: For the purpose of this Section: Exchange EHU: The existing non -price appreciation capped employee housing unit or other unit with an employee housing deed restriction that is being proposed to have the deed restriction released as part of this program. Proposed EHU: The existing dwelling unit that is being proposed to receive an be G rl , g� eed tpt",a ro°Inin of VQU fnr the nu pGse of nhn;ng a nip employee housing deed restriction as part of this program. Section 3 . Section 12- 13 -5C, General Requirements, Vail Town Code is hereby 2. Proposed EHU requirements: a. The proposed EHU(s) shall be located within the Town of Vail. b. The proposed EHU(s) shall be within a homeowners association that does not preclude deed restricted units, does not have a right of first refusal, Ordinance No. 10, Series of 2011, first reading does not have right to approve the sale or the sale contract, or have any other requirements deemed to be similarly restrictive by the Administrator. c. The proposed EHU shall comply with the minimum size requirements shown in Table 13 -2. TABLE 13 -2: MINIMUM SIZE OF PROPOSED EHUs Type Of Unit Minimum Size (GRFA) Studio 438 square feet 1 bedroom 613 square feet 2 bedroom 788 square feet 3+ bedrooms 1,225 square feet d. The proposed EHU shall contain a kitchen facility or kitchenette and a bathroom. e. The property on which the proposed EHU is located shall comply with Chapter 12 -10, Off - Street Parking and Loading, Vail Town Code. f. The proposed EHU shall have its own entrance. There shall be no interior 45. No Credit Given: If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in Subsection D3 above, the additional gross residential floor area (GRFA) be eligible for use as any form of future credit or for the Commercial Linkage or Inclusionary Zoning Ordinance No. 10, Series of 2011, first reading employee housing mitigation banks established by Sections 12 -23 -7 and 12 -24 -7, Vail Town Code. the following formulas: Existing EHU sq ft x multiplier x inclusionary zoning fee = Fee -in -Lieu Payment a. If the exchange EHU was approved prior to July 22, 1994 and has a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees...," the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 1 C. If the exchange EHU was approved after July 22, 1994 and /or does not have a deed restriction that includes the language stating "if the unit is rented, it shall be rented only to tenants who are full time employees...'; and is within the commercial job core, the formula for fee -in -lieu payment is: [the square footage of the exchange EHU as recorded on the deed restriction] x [the current rate for inclusionary zoning fee -in -lieu] x 3 Section 4 . Section 12- 13 -5F, Review Process, Vail Town Code is hereby amended as follows: F. Review Process: 2. Review Procedures: Ordinance No. 10, Series of 2011, first reading d. Appeal: Administrator and Town Council decisions may be appealed in accordance with the provisions in section 12 -3 -3 , "Appeals ", of this title. 3. Criteria and Findings: a. Criteria: Before acting on an Employee Housing Deed Restriction Exchange application, the Vail Local Housing Authority and Vail Town Council shall consider the following criteria with respect to the application: Section 6 . The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 7 . The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 8 . All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall Ordinance No. 10, Series of 2011, first reading not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 17 day of May, 2011 and a public hearing for second reading of this Ordinance set for the 7 th day of June, 2011, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Richard D. Cleveland, Mayor Attest: Ordinance No. 10, Series of 2011, first reading PLANNING AND ENVIRONMENTAL COMMISSION April 11, 2011 TOWN OF 1:OOpm VAIL ` TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 Members Present Members Absent Bill Pierce Henry Pratt Pam Hopkins Luke Cartin Tyler Schneidman John Rediker Michael Kurz SWEARING -IN — Lorelei Donaldson, Town Clerk 10 minutes Appointment of Chairman ACTION: Pierce appointed as chairman MOTION: Kurz SECOND: Cartin VOTE: 7 -0 -0 Appointment of Chairman Pro -Tem ACTION: Pratt appointed as vice chairman MOTION: Pierce SECOND: Rediker VOTE: 7 -0 -0 CHAMONIX HOUSING VIDEO — Nina Timm, TOV Housing Coordinator 15 minutes 30 minutes A request for a recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. (PEC110018) Applicant: Town of Vail, represented by the Vail Local Housing Authority Planner: Nina Timm /Rachel Dimond ACTION: Tabled to April 25, 2011 MOTION: Kurz SECOND: Pratt VOTE: 7 -0 -0 Rachel Friede made a presentation per the Staff memorandum. She focused on the background of the current regulations, their implementation, and the proposed amendments. Nina Timm stated that the Town currently had about one -third of the desired deed restricted housing goal. Commissioner Kurz inquired about the number of deed restricted units in Town that are not occupied. Nina Timm explained that approximately 50 units are currently not occupied. Galen Aasland, resident of Vail with a deed restricted unit, went through the adopting ordinances and the history of deed restricted employee housing in the Town Code. He stated that he did not believe his unit was an EHU and therefore this ordinance should not apply to his unit. Page 1 Nina Timm explained that the 31 units identified as having a deed restriction, similar to Mr. Aasland's, are not required to participate in the regulations and this program may benefit them if the owners choose to participate. Steve Lindstrom, resident and member of the Vail Local Housing Authority, stated that the goal was to get employee housing units occupied. He felt that the proposed regulations would help to create a program to allow for options to relocate an EHU and result in greater occupancy. Craig Cohn, resident of Vail with an EHU, provided an example of his deed restricted unit at the top of Buffehr Creek Road, which is 1.1 miles to the closest bus stop. He felt that his EHU was not the greatest employee housing due to the location and its small size. He said he could get a mortgage on a suitable and compliant unit somewhere else in Town which might be more conducive to employee housing. By increasing size pursuant to the exchange program he would go from housing one employee to likely housing two employees. Peter Knobel, resident of Vail and owner of many EHUs, suggested that there should be a program by which multiple people could work together to transfer excess square footage from a replacement unit to those who struggle to find a unit which exactly matches the required replacement amount. Commissioner Pierce inquired into a scenario where by most units would be purchased in multi. unit complexes and what would be the impacts to the development if there were multiple EHUs on a property. Nina Timm responded that many multi - family projects contain at least one EHU and did not believe there would be a negative effect. Peter Knobel stated that his Solaris development owned 22 EHUs throughout Town and he did not experience any difficulties. Commissioner Kurz inquired as to how we measure the employee housing goal for the Town by people, beds, or square footage. Nina Timm explained it is measured by people. Commissioner Pierce inquired as to the logic behind keeping the current exchange program, since no one would give a unit to the Town. Commissioner Pratt asked whether initial approvals for EHUs and extra GRFA provided for the EHU was in essence purchasing zoning? Nina Timm and Rachel Friede explained that the structure resulting on a lot after the removal of the deed restriction must comply with zoning. It is not legal to create a non - conformity through the removal of your on -site EHU. Commissioner Pratt suggested that the memorandum identified approximately 44 properties as potentially able to utilize the program. Commissioner Pratt stated he does not like the 100% pay -in -lieu option as it appears you are buying zoning and does not achieve the goal of obtaining housing. The Town should not use the fee -in -lieu funds for projects which the town is already going to construct such as Chamonix. Page 2 Commissioner Rediker agreed with Commissioner Pratt's comment about 100% fee -in -lieu and he thought there was merit to an EHU square footage bank. He asked did staff consider this? Nina Timm explained that with the program as proposed you could hit the requirement on the mark because of the fee -in -lieu and no bank would be necessary. Commissioner Cartin inquired about the transfer of an EHU from a property and the results of selling the initial home. He asked whether the deed restriction would remain tied to the existing structure. He also disagreed with the 100% fee -in -lieu as it would result in concentrated EHUs in medium and high density projects. It would result in less dispersal of units and he felt dispersal was good. He was also concerned about increasing competition for the most affordable free - market units in Vail with this program. Rachel Friede explained the goal of having a variety of unit types so people can live their life in Vail. Nina Timm reminded the Commission that the there were approximately +/- 44 units which might take advantage of the program. Peter Knobel restated that the bank is a necessary tool and maybe it is time limited so that it does not have to be tracked over time. Commissioner Kurz believed the amendments accomplish the goal of exchange properties and the idea of a bank appeals to him. Commissioner Pratt did not believe a bank served the Town's goal of reducing staff costs to administer a program. He suggested a leeway of plus or minus 10% of the required square feet for the replacement unit. Commissioner Pierce stated he is not in favor of providing leeway to the amount being replaced if you over provide you get a thank you not a bank for the surplus square feet. The PEC tabled the item with a request that Staff come back with proposed amendments addressing the 31 units similar to Mr. Aasland's, 100% pay in lieu, an option that includes the ability to bank excess square feet, a proposal to allow for leeway on square feet for the proposed EHU and a recommendation from the Vail Local Housing Authority. 5 minutes 2. A report to the Planning and Environmental Commission on the administrator's approval of an amendment to an existing conditional use permit, pursuant to Section 12- 16 -10, Amendment Procedures, Vail Town Code, to allow for changes to a private outdoor recreation facilities, as a primary use, in the Lionshead Mixed Use 1 District, located at 560 East Lionshead Circle /Lot 2, Vail Lionshead 6 Filing, and setting forth details in regard thereto. (PEC110019) Applicant: Vail Corporation, represented by Jeff Babb Planner: Rachel Dimond Commissioner Kurz inquired into how the bike path bisecting the golf course was addressed from the previous discussion. Rachel Friede described the Design Review requirement for signage for bicyclists and the painting of a crosswalk across the bike path. The Commissioners expressed their support for the administrative approval Page 3 5 minutes 3. A request for a recommendation to the Vail Town Council, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12 -26, Exactions and Dedications, Vail Town Code, to allow for the creation of regulations for mitigation of development impacts, and setting forth details in regard thereto. (PEC100050) Applicant: Town of Vail Planner: George Ruther / Rachel Dimond ACTION: Table to April 25, 2011 MOTION: Pratt SECOND: Kurz VOTE: 7 -0 -0 5 minutes 4. A request for a final recommendation to the Vail Town Council for prescribed regulations amendments to Title 12, Zoning Regulations and Title 14, Development Standards, Vail Town Code, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to provide regulations that will implement sustainable building and planning standards, and setting forth details in regard thereto. (PEC090028) Applicant: Town of Vail Planner: Rachel Friede ACTION: Table to April 25, 2011 MOTION: Pratt SECOND: Kurz VOTE: 7 -0 -0 5 minutes 5. A request for review of a variance from Section 12 -6D -6, Setbacks, Vail Town Code, pursuant to Chapter 12 -17, Variances, Vail Town Code, to allow for the construction of a garage in the front and side setback, located at 2568 Arosa Drive/ Lot 4, Block C, Vail Das Schone Filing 1, and setting forth details in regard thereto. (PEC110017). Applicant: Sterling Resources TT, LLC Planner: Rachel Dimond ACTION: Withdrawn 5 minutes 6. A request for a recommendation to the Vail Town Council for a prescribed regulation amendment, pursuant to Section 11 -3 -3, Prescribed Regulations Amendment, Vail Town Code, to amend Section 11 -7 -15, Public Parking and Loading Signs for Private Property, to allow signs for public parking on private property, and setting forth details in regard thereto. (PEC100056) Applicant: Solaris Property Owner, represented by Michael Suman Planner: Bill Gibson ACTION: Withdrawn 5 minutes 7. A request for an amendment to an Approved Development Plan, pursuant to Section 12- 61 -11, Development Plan Required, Housing Zone District, Vail Town Code, to allow for revisions to the required landscape plan and geologic hazard mitigation plan for the redevelopment of the easternmost 5.24 acres of the Timber Ridge Village Apartments; and a request for the review of a variance, from Section 14 -5 -1, Minimum Standards, Parking Lot and Parking Structure Design Standards for All Uses, Vail Town Code, pursuant to Chapter 12 -17, Variances, Vail Town Code, to allow for a crossover drive aisle width of less than thirty -feet (30') within the required parking structure, located at 1280 North Frontage Road /Lots 1 -5, Block C, Lions Ridge Subdivision Filing 1,and setting forth details in regard thereto. (PEC100018 /PEC100019) Applicant: Vail Timber Ridge L.L.C. Planner: George Ruther ACTION: Withdrawn 60 minutes 8. A request for a recommendation to the Vail Town Council on a proposed major amendment to Special Development District No. 4, Cascade Village, pursuant to Article 12 -9A, Special Development District, Vail Town Code, to allow for an increase in gross residential floor area and Page 4 site coverage, and a reduction of the side setback, located at 1476 Westhaven Drive /Lot 53, Glen Lyon Subdivision, and setting forth details in regard thereto. (PEC110014) Applicant: Coldstream Homeowners Condominiums, represented by Tom Braun Planner: Warren Campbell ACTION: Withdrawn 9. Approval of March 14, 2011 minutes MOTION: Kurz SECOND: Rediker VOTE: 6 -0 -1 (Pratt obstained) 10. Information Update Commissioner Kurz inquired as to the Ever Vail process which is currently underway with Town Council. George Ruther explained that the Town Council is reviewing the five applications that the Commission took action upon. It is unlikely that they will return to the Commission. A significant revision may cause an application to return to the Commission. George Ruther provided an update on the issuance of Temporary Certificates of Occupancy for the fire station and First Chair. 11. Adjournment MOTION: Kurz SECOND: Hopkins VOTE: 7 -0 -0 The applications and information about the proposals are available for public inspection during regular office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call (970) 479 -2138 for additional information. Sign language interpretation is available upon request with 24 -hour notification. Please call (970) 479 -2356, Telephone for the Hearing Impaired, for information. Community Development Department Published April 8, 2011, in the Vail Daily. Page 5 TOWN OF VAI Members Present Bill Pierce Henry Pratt Pam Hopkins Luke Cartin Tyler Schneidman John Rediker Michael Kurz PLANNING AND ENVIRONMENTAL COMMISSION April 11, 2011 1:00pm TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 Members Absent SWEARING -IN — Lorelei Donaldson, Town Clerk 10 minutes Appointment of Chairman ACTION: Pierce appointed as chairman MOTION: Kurz SECOND: Cartin VOTE: 7 -0 -0 Appointment of Chairman Pro -Tem ACTION: Pratt appointed as vice chairman MOTION: Pierce SECOND: Rediker VOTE: 7 -0 -0 CHAMONIX HOUSING VIDEO — Nina Timm, TOV Housing Coordinator 15 minutes 30 minutes A request for a recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Exchange Program, and setting forth details in regard thereto. (PEC110018) Applicant: Town of Vail, represented by the Vail Local Housing Authority Planner: Nina Timm /Rachel Dimond ACTION: Tabled to April 25, 2011 MOTION: Kurz SECOND: Pratt VOTE: 7 -0 -0 Rachel Friede made a presentation per the Staff memorandum. She focused on the background of the current regulations, their implementation, and the proposed amendments. Nina Timm stated that the Town currently had about one -third of the desired deed restricted housing goal. Commissioner Kurz inquired about the number of deed restricted units in Town that are not occupied. Nina Timm explained that approximately 50 units are currently not occupied. Galen Aasland, resident of Vail with a deed restricted unit, went through the adopting ordinances and the history of deed restricted employee housing in the Town Code. He stated that he did not believe his unit was an EHU and therefore this ordinance should not apply to his unit. Page 1 Nina Timm explained that the 31 units identified as having a deed restriction, similar to Mr. Aasland's, are not required to participate in the regulations and this program may benefit them if the owners choose to participate. Steve Lindstrom, resident and member of the Vail Local Housing Authority, stated that the goal was to get employee housing units occupied. He felt that the proposed regulations would help to create a program to allow for options to relocate an EHU and result in greater occupancy. Craig Cohn, resident of Vail with an EHU, provided an example of his deed restricted unit at the top of Buffehr Creek Road, which is 1.1 miles to the closest bus stop. He felt that his EHU was not the greatest employee housing due to the location and its small size. He said he could get a mortgage on a suitable and compliant unit somewhere else in Town which might be more conducive to employee housing. By increasing size pursuant to the exchange program he would go from housing one employee to likely housing two employees. Peter Knobel, resident of Vail and owner of many EHUs, suggested that there should be a program by which multiple people could work together to transfer excess square footage from a replacement unit to those who struggle to find a unit which exactly matches the required replacement amount. Commissioner Pierce inquired into a scenario where by most units would be purchased in multi- unit complexes and what would be the impacts to the development if there were multiple EHUs on a property. Nina Timm responded that many multi - family projects contain at least one EHU and did not believe there would be a negative effect. Peter Knobel stated that his Solaris development owned 22 EHUs throughout Town and he did not experience any difficulties. Commissioner Kurz inquired as to how we measure the employee housing goal for the Town by people, beds, or square footage. Nina Timm explained it is measured by people. Commissioner Pierce inquired as to the logic behind keeping the current exchange program, since no one would give a unit to the Town. Commissioner Pratt asked whether initial approvals for EHUs and extra GRFA provided for the EHU was in essence purchasing zoning? Nina Timm and Rachel Friede explained that the structure resulting on a lot after the removal of the deed restriction must comply with zoning. It is not legal to create a non - conformity through the removal of your on -site EHU. Commissioner Pratt suggested that the memorandum identified approximately 44 properties as potentially able to utilize the program. Commissioner Pratt stated he does not like the 100% pay -in -lieu option as it appears you are buying zoning and does not achieve the goal of obtaining housing. The Town should not use the fee -in -lieu funds for projects which the town is already going to construct such as Chamonix. Page 2 Commissioner Rediker agreed with Commissioner Pratt's comment about 100% fee -in -lieu and he thought there was merit to an EHU square footage bank. He asked did staff consider this? Nina Timm explained that with the program as proposed you could hit the requirement on the mark because of the fee -in -lieu and no bank would be necessary. Commissioner Cartin inquired about the transfer of an EHU from a property and the results of selling the initial home. He asked whether the deed restriction would remain tied to the existing structure. He also disagreed with the 100% fee -in -lieu as it would result in concentrated EHUs in medium and high density projects. It would result in less dispersal of units and he felt dispersal was good. He was also concerned about increasing competition for the most affordable free - market units in Vail with this program. Rachel Friede explained the goal of having a variety of unit types so people can live their life in Vail. Nina Timm reminded the Commission that the there were approximately +/- 44 units which might take advantage of the program. Peter Knobel restated that the bank is a necessary tool and maybe it is time limited so that it does not have to be tracked over time. Commissioner Kurz believed the amendments accomplish the goal of exchange properties and the idea of a bank appeals to him. Commissioner Pratt did not believe a bank served the Town's goal of reducing staff costs to administer a program. He suggested a leeway of plus or minus 10% of the required square feet for the replacement unit. Commissioner Pierce stated he is not in favor of providing leeway to the amount being replaced if you over provide you get a thank you not a bank for the surplus square feet. The PEC tabled the item with a request that Staff come back with proposed amendments addressing the 31 units similar to Mr. Aasland's, 100% pay in lieu, an option that includes the ability to bank excess square feet, a proposal to allow for leeway on square feet for the proposed EHU and a recommendation from the Vail Local Housing Authority. 5 minutes 2. A report to the Planning and Environmental Commission on the administrator's approval of an amendment to an existing conditional use permit, pursuant to Section 12- 16 -10, Amendment Procedures, Vail Town Code, to allow for changes to a private outdoor recreation facilities, as a primary use, in the Lionshead Mixed Use 1 District, located at 560 East Lionshead Circle /Lot 2, Vail Lionshead 6 Filing, and setting forth details in regard thereto. (PEC110019) Applicant: Vail Corporation, represented by Jeff Babb Planner: Rachel Dimond Commissioner Kurz inquired into how the bike path bisecting the golf course was addressed from the previous discussion. Rachel Friede described the Design Review requirement for signage for bicyclists and the painting of a crosswalk across the bike path. The Commissioners expressed their support for the administrative approval. Page 3 5 minutes 3. A request for a recommendation to the Vail Town Council, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12 -26, Exactions and Dedications, Vail Town Code, to allow for the creation of regulations for mitigation of development impacts, and setting forth details in regard thereto. (PEC100050) Applicant: Town of Vail Planner: George Ruther / Rachel Dimond ACTION: Table to April 25, 2011 MOTION: Pratt SECOND: Kurz VOTE: 7 -0 -0 5 minutes 4. A request for a final recommendation to the Vail Town Council for prescribed regulations amendments to Title 12, Zoning Regulations and Title 14, Development Standards, Vail Town Code, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to provide regulations that will implement sustainable building and planning standards, and setting forth details in regard thereto. (PEC090028) Applicant: Town of Vail Planner: Rachel Friede ACTION: Table to April 25, 2011 MOTION: Pratt SECOND: Kurz VOTE: 7 -0 -0 5 minutes 5. A request for review of a variance from Section 12 -6D -6, Setbacks, Vail Town Code, pursuant to Chapter 12 -17, Variances, Vail Town Code, to allow for the construction of a garage in the front and side setback, located at 2568 Arosa Drive/ Lot 4, Block C, Vail Das Schone Filing 1, and setting forth details in regard thereto. (PEC110017). Applicant: Sterling Resources TT, LLC Planner: Rachel Dimond ACTION: Withdrawn 5 minutes 6. A request for a recommendation to the Vail Town Council for a prescribed regulation amendment, pursuant to Section 11 -3 -3, Prescribed Regulations Amendment, Vail Town Code, to amend Section 11 -7 -15, Public Parking and Loading Signs for Private Property, to allow signs for public parking on private property, and setting forth details in regard thereto. (PEC100056) Applicant: Solaris Property Owner, represented by Michael Suman Planner: Bill Gibson ACTION: Withdrawn 5 minutes 7. A request for an amendment to an Approved Development Plan, pursuant to Section 12- 61 -11, Development Plan Required, Housing Zone District, Vail Town Code, to allow for revisions to the required landscape plan and geologic hazard mitigation plan for the redevelopment of the easternmost 5.24 acres of the Timber Ridge Village Apartments; and a request for the review of a variance, from Section 14 -5 -1, Minimum Standards, Parking Lot and Parking Structure Design Standards for All Uses, Vail Town Code, pursuant to Chapter 12 -17, Variances, Vail Town Code, to allow for a crossover drive aisle width of less than thirty -feet (30') within the required parking structure, located at 1280 North Frontage Road /Lots 1 -5, Block C, Lions Ridge Subdivision Filing 1,and setting forth details in regard thereto. (PEC1 0001 8/PEC1 00019) Applicant: Vail Timber Ridge L.L.C. Planner: George Ruther ACTION: Withdrawn 60 minutes 8. A request for a recommendation to the Vail Town Council on a proposed major amendment to Special Development District No. 4, Cascade Village, pursuant to Article 12 -9A, Special Development District, Vail Town Code, to allow for an increase in gross residential floor area and Page 4 site coverage, and a reduction of the side setback, located at 1476 Westhaven Drive /Lot 53, Glen Lyon Subdivision, and setting forth details in regard thereto. (PEC110014) Applicant: Coldstream Homeowners Condominiums, represented by Tom Braun Planner: Warren Campbell ACTION: Withdrawn 9. Approval of March 14, 2011 minutes MOTION: Kurz SECOND: Rediker VOTE: 6 -0 -1 (Pratt obstained) 10. Information Update Commissioner Kurz inquired as to the Ever Vail process which is currently underway with Town Council. George Ruther explained that the Town Council is reviewing the five applications that the Commission took action upon. It is unlikely that they will return to the Commission. A significant revision may cause an application to return to the Commission. George Ruther provided an update on the issuance of Temporary Certificates of Occupancy for the fire station and First Chair. 11. Adjournment MOTION: Kurz SECOND: Hopkins VOTE: 7 -0 -0 The applications and information about the proposals are available for public inspection during regular office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call (970) 479 -2138 for additional information. Sign language interpretation is available upon request with 24 -hour notification. Please call (970) 479 -2356, Telephone for the Hearing Impaired, for information. Community Development Department Published April 8, 2011, in the Vail Daily. Page 5 Ad Name: 6383007A Customer: TOWN OF VAIL /PLAN DEPT /COMM Your account number is: 1023233 PROOF OF PUBLICATION STATE OF COLORADO } }SS. COUNTY OF EAGLE } I, Don Rogers, do solemnly swear that I am a qualified representative ofthe Vail Daily. That the same Daily newspaper printed, in whole or in part and published in the County of Eagle, State of Colorado, and has a general circulation therein; that said newspaper has been published continuously and uninterruptedly in said County of Eagle for a period of more than fifty -two consecutive weeks next prior to the first publication of the annexed legal notice or advertisement and that said newspaper has published the requested legal notice and advertisement as requested. The Vail Daily is an accepted legal advertising medium, only for jurisdictions operating under Colorado's Home Rule provision. That the annexed legal notice or advertisement was published in the regular and entire issue of every number of said daily newspaper for the period of 1 consecutive insertions; and that the first publication of said notice was in the issue of said newspaper dated 4/8/2011 and that the last publication of said notice was dated 4/8/2011 in the issue of said newspaper. In witness whereof, I have here unto set my hand this day, 04/19/2011 General Man ager/Publisher/Editor Vail Daily Subscribed and sworn to before me, a notary public in and for the County of Eagle, State of Colorado this day 04/19/2011 It - Pamela J. Schultz, Notary Public My Commission expires: November 1, 2011 PAMELA J SCMXTZ "ry Pub k State of Colorado THIS ITEM MAY AFFECT YOUR PROPERTY PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the Planning and Environmental Commission of the Town of Vail will hold a public hearing in accordance with section 12 -3 -6, Vail Town Code, on April 25, 2011, at 1:00 pm in the Town of Vail Municipal Building, in con- sideration of: There are no new items. Please see the April 25, 2011 agenda which will be published on April 22, 2011 for items to be heard. The applications and information about the propos- als are available for public inspection during office hours at the Town of Vail Community Develop- ment Department, 75 South Frontage Road. The public is invited to attend project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call 970 - 479 -2138 for additional informa- tion. Sign language interpretation is available upon re- quest, with 24 -hour notification. Please call 970 - 479 -2356, Telephone for the Hearing Im- paired, for information. Published April 8, 2011, in the Vail Daily. (6383007) Ad Name: 6436911 A Customer: TOWN OF VAIL /PLAN DEPT /COMM Your account number is: 1023233 PROOF OF PUBLICATION STATE OF COLORADO } }SS. COUNTY OF EAGLE } I, Don Rogers, do solemnly swear that I am a qualified representative ofthe Vail Daily. That the same Daily newspaper printed, in whole or in part and published in the County of Eagle, State of Colorado, and has a general circulation therein; that said newspaper has been published continuously and uninterruptedly in said County of Eagle for a period of more than fifty -two consecutive weeks next prior to the first publication of the annexed legal notice or advertisement and that said newspaper has published the requested legal notice and advertisement as requested. The Vail Daily is an accepted legal advertising medium, only for jurisdictions operating under Colorado's Home Rule provision. That the annexed legal notice or advertisement was published in the regular and entire issue of every number of said daily newspaper for the period of 1 consecutive insertions; and that the first publication of said notice was in the issue of said newspaper dated 4/22/2011 and that the last publication of said notice was dated 4/22/2011 in the issue of said newspaper. In witness whereof, I have here unto set my hand this day, 04/22/2011 General Man ager/Publisher/Editor Vail Daily Subscribed and sworn to before me, a notary public in and for the County of Eagle, State of Colorado this day 04/22/2011 It - Pamela J. Schultz, Notary Public My Commission expires: November 1, 2011 PAMELA J SCMXTZ "ry Pub k State of Colorado PLANNING AND ENVIRONMENTAL COMMISSON April 25, 2011 1:OOpm TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 Members Present Members Absent 30 minutes 1.A request for a recommendation to the Vail Town Council, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12 -26, Exactions and Dedications, Vail Town Code, to allow for the creation of regulations for mitigation of develop- ment impacts, and setting forth details in regard thereto. (PEC100050) Applicant: Town of Vail Planner: George Ruther /Rachel Dimond ACTION: MOTION: SECOND: VOTE: 30 minutes 2.A request for a recommendation to the Vail Town Council for prescribed regulation amendments, pursuant to Section 12 -3 -7, Amendment, Vail Town Code, to amend Chapter 12 -13 -5, Employee Housing Deed Restriction Exchange Program, Vail Town Code, to establish additional exchange methods within the Employee Housing Unit Ex- change Program, and setting forth details in regard thereto. (PEC110018) Applicant: Town of Vail, represented by the Vail Local Housing Authority Planner: Nina Timm/Rachel Dimond ACTION: MOTION: SECOND: VOTE: 5 minutes 3.A request for a final recommendation to the Vail Town Council for prescribed regulations amend- ments to Title 12, Zoning Regulations and Title 14, Development Standards, Vail Town Code, pursu- ant to Section 12 -3 -7, Amendment, Vail Town Code, to provide regulations that will implement sustainable building and planning standards, and setting forth details in regard thereto. (PEC090028) Applicant: Town of Vail Planner: Rachel Friede ACTION: Table to June 13, 2011 MOTION: SECOND: VOTE: 4.Approval of April 11, 2011 minutes MOTION: SECOND: VOTE: 5.Information Update 6.Adjournment MOTION: SECOND: VOTE: The applications and information about the propos- als are available for public inspection during regular office hours at the Town of Vail Community Devel- opment Department, 75 South Frontage Road. The public is invited to attend the project orienta- tion and the site visits that precede the public hearing in the Town of Vail Community Develop- ment Department. Please call (970) 479 -2138 for additional information. Sign language interpretation is available upon re- quest with 24 -hour notification. Please call (970) 479 -2356, Telephone for the Hearing Impaired, for information. Community Development Department Published April 22, 2011, in the Vail Daily. (6436911)