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