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HomeMy WebLinkAbout2019-01-08 VLHA Meeting Agenda Vail Local Housing Authority Meeting Results Tuesday, December 11,2018 Regular Meeting Public Meeting 3:00 PM –5:00PM Housing Department Large Conference Room 75 South Frontage Road West, Vail, Colorado 81657 MEMBERS PRESENTMEMBERS ABSENT Steve LindstromMary McDougall Molly Morales, arrived at 3:30PM Francisco Meza James Wilkins Staff George Ruther Lynne Campbell Lindstrom called the meeting to order at 3:10PM, present were Meza, Wilkins, Morales, Lindstrom, Ruther and Campbell from staff. Also present were Carlie Smith, Finance Services Managerand Andrew Knudtsen from EPS. 1.1Review and Approve November 27, 2018Meeting Results The Board reviewed the meeting results and approved with corrections. Lindstrom abstained as was not present at the November 27, 2018 meeting. MOTION: WilkinsSECOND: MezaVOTE: 2-0 2.1Review and Approval of Vail Local Housing Authority Resolution21, Series of 2018, A Resolution Adopting a Budget and Making Appropriations to Pay the Costs, Expenses and Liabilities of the Vail Local Housing Authority, for its Fiscal Year January 1, 2019 Through December 31, 2019. Carlie Smith, Town of Vail Finance Services Managerpresented an update on the Housing Authority’s 2019 budget. The budget was increased from $31,000 in 2018 to $43,200. This allows for the following expenditures. Authority Professional Development$2,000 Administrative Expenditures$ 1,200 Proposedtax ballot initiative$10,000 Update of The Economic Value of the Town Page 1 of Vail’s Investment in Employee Housing$15,000 Environmental Impact of Economic $15,000 The 2017 revenue totaled $47,000;$35,000 from ground leases and $12,500 from Middle Creek Village revenue share. The Board asked how the Lion’s Ridge Apartment payments were scheduled. Ruther stated it was st an escalating payment, flat for the 15-7 years at which point Gorman & CO. can exercise option to purchase. If they don’t exercise option to purchase lease payment escalates. Lindstrom asked where the payments are applied. Smith to review and confirm. Wilkins made a motion to approve Resolution 21, Series of 2018, A Resolution Adopting a Budget and Making Appropriations to Pay the Costs, Expenses and Liabilities of the Vail Local Housing Authority, for its Fiscal Year January 1, 2019 Through December 31, 2019 MOTION: WilkinsSECOND: MezaVOTE: 3-0 2.2.Reviewand Approvalof a Resolution No. 20, Series of 2018 a Resolution Approving the Purchase of a Deed Restriction Interest in Property (Type III Deed Restriction) in the Town of Vail LegallyDescribed as Vail East Townhouse Condos Unit 8, Eagle County, Colorado with a PhysicalAddress of 5020 Main Gore Place Unit 8, Vail, Colorado; Subject to Ratification by the Vail Town Council; and Setting Forth Details in Regard Thereto. Wilkins motioned to approve Resolution No. 20, Series of 2018 a Resolution Approving the Purchase of a Deed Restriction Interest in Property (Type III Deed Restriction) in the Town of Vail LegallyDescribed as Vail East Townhouse Condos Unit 8, Eagle County, Colorado with a PhysicalAddress of 5020 Main Gore Place Unit 8, Vail, Colorado; Subject to Ratification by the Vail Town Council; and Setting Forth Details in Regard Thereto. MOTION: WilkinsSECOND: MezaVOTE: 3-0 2.3. Economic Value of Employee Housing –Economic Planning Systems, Andrew Knudtsen Ruther introduced Andrew Knudtsen, principal with Economic Planning Systems(EPS). EPS is working on other housing studies throughout the state of Colorado and outside the state. Ruther invited Knudtsen to meet with the Board to gain understanding of whatis in needof updatingfrom the Economic Value of the Town of Vail’s Investment in Employee Housingreport from 2012. Knudtsen provided the Board with a company overview. Board member Molly Morales arrived at 3:30PM. Knudtsen has reviewed the existing document revealing his thoughts. There are 3 components from the existing document he believes can be expanded upon. 1.Retailspending 2.Parking cost 3.Employer cost, including training, recruitment and retention Page 2 This list layersto generate community. He stated he would expand on existing report add job creation, how many local jobs as well as job retention. Lindstrom stated we needto lookat the larger picture. Vail is competing with other resort areas thatall have housing issues. Vail has jobs. Meza questioned if the Town is doing anything about mobility. Ruther: yes this is in conversation now. He said employers are not getting top employees and this is resonating with the community. Per Morales Vail Health’s 5 year study recently completed indicated the average age range for employee change is 35-37. Ruther mentioned the Town’s employee data indicated the midrange professional is leaving.He indicated the audience is voters, employers. Knudtsen will include in report Jobs Parking Transit Infrastructure (utilities) Most efficient to build Quantify carbon output, Ruther agreed to this piece of data but only with facts to quantify, credible data (volume) Wilkins said to use units vs. dollars Lindstrom: it is parallel, trip cost is dollars. Morales: Would it make sense to review where necessities are, i.e. schools and hospital? Knudtsen: EPS uses approximate cost under former administration.It is middle of the road and can be can be removedif need be. Knudtsen: Some things are not as tangible, effect on parent’s time with their children,how we keep people off the road soparentscan bewith families longer. He asked if nonprofits should be included in the report. Lindstrom believes it is larger than non-profits. Who will be part of all groups? Who will run for local boards if no one lives here? Lindstrom: Work toward 2 parallelsunits of deed restricted units. Live as new person in town. nd Move through life cycle. Don’t compete with 2home market. Knudtsen: Tier types of units: rental, for sale, entry level. Page 3 Wilkins: movingup in Vail from entry level is not available in Vail. Look at retirement. What comes after employment, deed restrictions? What’s the balance? Knudtsen: EPS will keep business expense, quantity over time, cost of unfilled positions and turn over, as well as pay differentialwithin valley?EPS can quantify. Will they pay more to bring people to Vail? Knudtsen: Like for like is the challenge. Think about comparison of additional employee expenses vs additional employerexpenses. Similardollars. EPS can quantify this. Can show actual dollars spent on housing. Once quantified can show impacts. stnd Lindstrom quantify recruitment choices for instance between number 1or 2choice versus other choices. Wilkins: quantify employee costs. Knudtsen listed data availability. QCWstate need letter from TOV, this has good bureau of labor statistics with location and wage levels.Data is proprietary so need to report out aggregate data. Hard to work with, listed by month. Generally review a month over time. Can do analysis by geography or other. Decide how to display, use simple infographics. Include in summary QCW: Jobs Time series Geography Wage Level Inventory EHUs Market rate –have 2015 census, American Community Survey(ACS) Local Health Department for commuting data Community surveys Ruther said for EPS to check with RRCfor community survey results. Convene major employers for focus groups. Lindstrom said focus groups may be possible but indicated one on one phone calls may be better. David Schwartz and Knudtsen will reply in a week. Ruther reminded Knudtsen and Board about the scope of work. Lindstrom wants Board to get draft for review and to collaborate with EPS. Ruther said there is a need to communicate tradeoffs. Knudtsen said the timeline is good for a January 2, 2019 start date. Page 4 2.4 Housing Authority Council Update Preparation Ruther provided an update and review for the update to Council. The Housing department has included 2018 stats, department and Authority progress, housing policy statement, Vail InDEED, a review of current projects and long term funding information. Lindstrom will present to Council on December 18, 2018. 2.5. East Vail Parcel Update The East Vail parcel is going to Town Council executive session on December 18 with a public session regarding process. Triumph Development plans on submitting applications soon. 2.6. Potential Housing Site Discussion Item tabled to January 8,2019 meeting. 2.7. Housing Summit Update Ruther indicated all Board members should have received an invitation to the summit. There is money inthe 2019budget to cover Board member expense. The Housing department will sign up the Authority members who wish to attend. Wilkins can attend all days except January 17. The Board inquired about the cost to attend. Per Ruther the conference only is $460 which includes meetings and food. There is a YIMBY session on January 17 cost approximately $50-60 for that day only. 3.1. C.R.S. §24-6-402(4)(a)(e) -to discuss the purchase, acquisition, lease, transfer, or sale of property interests and to determine positions, develop a strategy and instruct negotiators, regarding: submitted Vail InDEED applications and program details. There were no Vail InDEED applications for review at this time. Per Ruther a special meeting will be called as necessary should there be an applicationfor reviewprior to the end of the year. Lindstrom reminded the group there was a Civic Area Planopen meeting tonight at 5. He believes the Board should stay on top of this subject. Meza plans to attend for the group. 4.1No action as a result of executive session. 5.1Wilkins made a motion to adjourn the meeting at 5:00 PM. MOTION: WilkinsSECOND: MoralesVOTE: 4-0 Next Meeting –January 8, 2019 December 25, 2018, Meeting Cancelled Future Agenda Items: 2019 Budget Housing Data Open Lands Plan Discussion Page 5 East Vail Parcel Update West Vail Master Plan Discussion Housing Sites Page 6 January 2, 2019 George Ruther, Director of Housing, Vail Housing Authority Town of Vail 75 South Frontage Road West Vail, CO 81657 Subject: Town of Vail Employee Housing Investment Economic Impacts; EPS #183136 Dear George: Thank you for the opportunity to provide you with a proposal to quantify the economic and public benefits of the Town of Vail’s investment in employee housing. As you know, Economic & Planning Systems (EPS) is a national economics consulting firm that has been providing services to public and private sector clients across the country and in Colorado for more than 35 years in the full spectrum of services related to real estate development, the financing of public infrastructure and government services, land use and transportation planning, government organization, and housing economics and policy. Specifically, EPS brings decades of experience working with mountain communities in assessing housing market dynamics and needs, community preferences, and structuring policy. EPS also brings decades of experience working with public and private sector clients assessing the economic, fiscal, and community (social) impacts of land use developments, affordable housing, transportation systems, nonprofit services, as well as regulation and policy. Overall, we believe our grasp of the issues, familiarity with Vail’s market dynamics, and experience providing these services for a broad spectrum of clients will be invaluable to the Town as it seeks to quantify the impact of its investment in employee housing, address the most relevant topics in public discourse, and to build a case for future investment. Based on our conversations, we have tailored the following scope of services to bring clarity to the issues. After you and your team have a chance to review the following scope of services and proposed budget, we will look forward to discussing next steps with you. Mr. George Ruther January 2, 2019 Page 2 Project Understanding Recognizing the importance that housing has on its economy, the Town of Vail has made significant investments in employee housing over decades, successfully meeting the needs of thousands of residents and the business community. EPS recognizes that these decisions have been rooted in the awareness of the benefits and (community, economic, and fiscal) impacts that employee housing has on the local economy (and sense of community). The Town has previously completed efforts to quantify some of that benefit. Building on that platform, EPS believes that there are numerous ways in which the breadth of economic and social benefits can be characterized and quantified that will : Communicate the broader narrative Support ongoing efforts to invest in employee housing Support leaders in future decisions to augment these investments EPS believes that the components listed below are a critical part of a strategy that can affirm decisions that have been made, build a case for the support and expansion of the Town’s investments, and lead to greater community and economic benefits. We also understand that there is a larger context in which these investments and the measurement of the corresponding impacts will resonate with constituents, leaders, and elected officials. These themes include: Quality of life. The Town of Vail exists because of the quality of life its environment and surroundings offer. But for those who would like to both live and work locally, their quality of life is greatly diminished by the thousands of hours each year spent commuting. The impact to household expenditure is significant, and dollars otherwise spent on commuting could be spent in the local economy, generating fiscal benefits as well. More importantly, just as low wages negatively affect a household’s quality of life, poverty of time can have an even greater impact on quality of life. Community. Maintaining and sustaining a sense of community, while much more difficult to measure, is fundamental to the broader conversation. The presence of permanent residents enhances the vitality of the community and increases the quality of the visitor experience. A related benefit is greater investment in the local community, such as increased participation in volunteerism, which is of great value to the nonprofit industry. Parking. In a community where land and construction costs are at a premium, every home that can be built for a permanent resident within Vail reduces the need for commuters to find parking. Given the most recent construction project (approximately $100,000 per space), the value of a ‘non-constructed’ parking garage is substantial, but is predicated on increasing the supply of locals housing to the degree that the parking demand can be alleviated. Job creation. Finally, the jobs that can be created with a more robust local resident work force will be an important factor to measure. Job creation is one of the most salient metrics of any economic impact analysis. The composition of the local economy, changes in that over time, and projections for ways it could expand should all be considered in a study of benefits derived from housing. EPS proposes the following layered approach and scope of services to analyze and quantify the community and economic impacts of the Town’s investment in employee housing. 183136-ptext-122818.docx Mr. George Ruther January 2, 2019 Page 3 Project Approach EPS’s approach is to offer the Town a selection of choices to address not only the baseline economic benefits to replicate previously-identified impacts, but also to quantify a refined layer of benefits that convey the meaning of those impacts in a context that resonates with decision- makers and the public. As such, EPS proposes a two-level approach to complete this effort as outlined below: Level 1 The first level analysis will replicate the findings from the previous study with some refinements and modifications to methodology and underlying assumptions. A few elements to highlight about this effort are: Revisit and refine the assumptions of employer cost savings Refine the assumptions and benefits to employees living in employee housing, such as their reduced travel times and associated costs, Housing plus Transportation (H+T) impacts, and their enhanced ability to build wealth Elevate the community-wide economic impact perspective, such as Gross Regional Product (GRP), total jobs, etc. Collect refined data from the Town on the demographics, incomes, housing costs, and location of work for the households in employee housing Level 2 The second level analysis will integrate a few new elements that may have been underestimated in the previous effort and some that were not included at all. It is designed to provide the Town with an enhanced assessment of community and economic impacts, including the broader economic context, how the Town’s investments compare to other markets, and a fuller quantification of how the investment enhances sense of community and quality of life. EPS also proposes to quantify how a scaled approach to the investment in employee housing has the potential to generate community and economic benefits that result in the attraction of more year-round industry (i.e. that adequate supply of housing facilitates the availability of a labor force, which facilitates the growth of industries beyond the core tourism-based industries). A few of the elements to highlight in this tier of analysis are: Quantify value of time, quality of life, and nonprofit industry (volunteerism) benefits (i.e. social return on investment) Quantify the environmental impacts of a reduction in commuter trips and commuting times Build a broader fiscal and economic narrative by identifying how the Town’s investment compares to other markets Provide an analysis that integrates IMPLAN economic impact modeling into the overall identification of impact. With these additional layers, EPS believes that the Town will be in a strong position to communicate how broadly the impacts ripple through the Town’s economy and community, as well as to make the case persuasively for future and augmented efforts to invest in employee housing. 183136-ptext-122818.docx Mr. George Ruther January 2, 2019 Page 4 Scope of Services Task 1: Project Initiation Following a notice to proceed, EPS will conduct a conference call with the client team to discuss the scope of the project, the priority level of tasks, and the timing of the project deliverables. Task 2: Data Collection EPS will collect primary and secondary data to build the analysis of economic and community impacts. Following are listed the Level 1 and Level 2 components of the data collection effort. Task 2.1: Level 1 Data Collection As characterized above, data collected will be used to replicate the findings from the previous study with some refinements and modifications to methodology and underlying assumptions. Data will include: Industry-level employment and wage data from the Colorado Department of Labor and Employment (CDLE) for 2001 through 2017 Commuting patterns by zip code or Census Designated Place using data from the U.S. Census Longitudinal Employer Household Dynamics (LEHD) for 2002 through 2015 to quantify the magnitude of trips, distance, and time associated with commuting Employee housing data, such as inventory of units, occupancy characteristics, number of households, distribution by income level, housing costs, location of work (if available) from the Town of Vail and/or Vail Housing Authority Current and historical TOV municipal budget information Unemployment and labor force participation data from DOLA and CDLE Current parking construction costs, using primary data, as well as information from EPS’s subscription service from RS Means Task 2.2: Level 2 Data Collection (Optional) As characterized above, data collected for this level of analysis will integrate a few new elements that may have been underestimated in the previous effort and some that were not included at all. These include data on: Collect value of time information from the U.S. Department of Transportation to characterize both business-related and leisure-oriented travel time Collect information from the Bureau of Labor Statistics (BLS), and adapt the findings from EPS’s recently-completed statewide nonprofit economic impact study, to estimate the value of volunteerism in the community Collect data to estimate the volume of greenhouse gas (GHG) emissions from commuting Document current and historical budget allocations dedicated to housing from a selection of comparable resort communities Delineate the historical annual affordable housing investment/expenditure, distinguishing capital versus operating budgets, using a selection of comparable resort markets Acquisition of baseline input-output data from IMPLAN for economic impact modeling 183136-ptext-122818.docx Mr. George Ruther January 2, 2019 Page 5 Task 3: Impact Analysis This task will quantify the numerous layers of economic, fiscal, and community impacts that stem from the Town’s investment in employee housing. Task 3.1: Level 1 Impact Analysis The first level of analysis will quantify metrics to characterize the economic and fiscal impacts to employee housing households in the context of the Town’s total economic activity. The value of investment to employees in terms of number of hours saved, total associated reduced travel costs, H+T, and enhanced ability to build wealth The value of investment to businesses in terms of avoided costs of inducing workers to drive from greater distances, as well as the benefits to them from the presence of more local (permanent resident) households The fiscal return on this investment to the community in terms of local household spending in terms of retail, healthcare, finance and insurance, and other major spending categories (versus the lost positive fiscal impacts of employees and their household spending occurring elsewhere down valley) The portion of the Town’s economy supported by the employee housing investment The estimated annual debt service payments avoided and/or the direct expenditure from the General Fund required to build a new parking structure Task 3.2: Level 2 Impact Analysis (Optional) The second level of analysis will quantify metrics to characterize the additional impacts of investment in employee housing. The value of investment in terms of GHG avoided The value to the community in terms of additional time given to the nonprofit community in the form of volunteerism and the associated social return on investment The potential expansion to the local economy with the use of IMPLAN to estimate jobs, GRP, and output impacts of higher wages paid Task 4: Comparable Resort Market Research (Optional) To generate support and motivation for continued and augmented employee housing investment, EPS will use data collected from Task 2.2 to demonstrate how Vail compares to other resort markets. The analysis will identify the percent of municipal budget dedicated to affordable housing, total number of employee housing units built over time, the relative strength of Vail’s economy by comparison to these other markets as a result, as well as the estimated magnitude of fiscal benefit (and return on investment) resulting from each of those communities’ efforts. Task 5: Deliverables Task 5.1: Report & Presentation EPS will prepare a brief 15- to 20-page report detailing the data collection, methodology, and findings of the analysis completed (Level 1 and Level 2, if selected). As is customary, a draft report will be shared with the client and presented in-person. Comments from staff review and the presentation will be incorporated into the final report. 183136-ptext-122818.docx Mr. George Ruther January 2, 2019 Page 6 Proposed Budget Based on the scope of services outlined above and the delineation of methodologies, EPS estimates that the Level 1 analysis can be completed for a budget of $18,715. Including all of the additional Level 2 components, including data collection, impact analysis, comparable market research, and infographic, EPS estimates a budget of $34,795. This scope, however, is designed to provide a baseline level of services (Level 1) and to accommodate a selection of additional services, most of which can be added a la carte based on the staff interests. EPS Staff PrincipalExec.Research geVPAnalyst IITotal in Char KnudtsenSchwartzJones Billing Rate$230$200$100 Labor Costs Task 1: Project Initiation1.51.51.5$795 Task 2: Data Collection Task 2.1: Level 1 Data Collection81012$5,040 Task 2.2: Level 2 Data Collection (Optional)4816$4,120 Task 3: Impact Analysis Task 3.1: Level 1 Impact Analysis61014$4,780 Task 3.2: Level 2 Impact Analysis (Optional)4818$4,320 Task 4: Comparable Resort Market Research (Optional)81430$7,640 Task 5: Deliverables Task 5.1: Report & Presentation101412$6,300 Subtotal$32,995 Total Staff Hours41.565.5103.5210.5 as % of Total Staff Hours20%31%49% Direct Costs Data Acquisition$1,300 Travel$500 Subtotal$1,800 Total Project Cost (Level 1)$18,715 Total Project Cost (Level 2)$34,795 Source: Economic & Planning Systems 183136-ptext-122818.docx Mr. George Ruther January 2, 2019 Page 7 Thank you again for the opportunity to propose this scope of services to you. We look forward to discussing the work with you and to working with you on this project. Sincerely, E CONOMIC &P LANNING S YSTEMS,I NC. Andrew M. Knudtsen Managing Principal 183136-ptext-122818.docx