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Home My WebLink About2019-07-23 VLHA Meeting Results Vail Local Housing Authority Meeting Results July 23, 2019 3:00 PM Town Council Chambers 75 S. Frontage Road -Vail, Colorado, 81657 1.Call to Order Lindstrom called the meeting to order at 3:06PM. Present are McDougall, Wilkins, Lindstrom and Morales arrived at 3:15PM. 2.Citizen Participation 2.1.Citizen Participation Patrick Scanlan, Director of Sales and Business Development, FortiusCapital is asking for Vail InDEED funds. Fortius is constructing 2for-sale duplexes, 4 units, located at 841 Main Street, Minturn, Colorado, near public transportation. All the units are 3/3ranging from1,400-1599 square feet and priced from $699K-$740K. Fortius is hoping to use Vail InDEED monies to support local housing. Completion date is scheduled for the beginning of October. Lindstrom asked if Fortiushad spokentothe Town of Minturn.Per Scanlan they had not. Wilkins asked how the restrictions would be enforced. Ruther said it would be similar to how 6 West Apartments were set up. The Town would approach by covenant or zoning violation. The Town does have ability to enforce and take to court. Lindstrom noted 6 West was the first Town of Vaildeal done outside of Vail’s jurisdiction. Lindstrom statedthe Authority would need to review this concept with the Council. Scanlan said Fortius has discussed these units with Vail employers. Scanlan will apply via the Vail InDEED application to move forward for further discussion. 3.Approval of Minutes 3.1.Approval of July 9, 2019 VLHA Meeting Results McDougall motioned to approveresults as presented. MOTION: McDougallSECOND: WilkinsVOTE: 3-0-1 Morales abstained 4.Main Agenda 4.1.Review Draft Economic Value of Deed Restricted Homes in the Town of Vail Report -Prepare for Presentation to the Vail Town Council on August 6th Worksession. Ruther forwarded Lindstrom and McDougall’s comments to EPS. Hoping to get on TC 8/6 afternoon agenda. McDougall had requested a better summary as one can get buried in the data. Ruther noted TOV asked EPS to list the 1-3 high level take-a-ways. Use info graphic to help it jump off page to clear statement. Lindstrom asked for draft of graphics for board to review. No other comments from the Authority regarding the draft. EPS will be present for the 8/20TC evening meeting. EPS is available Wed 2 pm 7/24 for conference call. Lindstrom is available. He wants document prior to meeting. 4.2.Discussion of Possible Incentives for Long Term Rental in the Town of Vail Ruther said the Town is trying to understand the Town’s long term rental impacts. Some Councilmembers want to know what else to do. Could the impacts be using positive incentives to help the employee housing. The Housing department needs to look at other communities and bring back to Authorityfor discussionand subsequent recommendation to the Town Council. McDougall wondered what the fee would be. STR numbers have been reduced due to availability per Wilkins. Morales stated the goal is to create a balance of STR and long term rentals. For instance, place a cap of the number of STRs that can register annually. Wilkins said education the public on what STR and long term rental income maybe. This is one tool which could be used. Ruther suggested the Housing department will do some STR community research. Housing will check with the Finance department regarding current numbers and stats. Lindstrom mentioned the Summit Information Systems (SIS)survey regarding STR is part of the housing problem. He thinks when we get the housing data set VLHA will see some trends. He mentioned requiring commercial insurance vs.residential insurance and types of rentals (classes). Lindstrom knows someone who lives in a Town who does some type of regulations and will get info from him. Ruther said the Authority may want to ask people who do long term why they do that versus short termto get a better understand of what incentives motivate long term rentals. Lindstrom said Minturnimplemented arule stating you can’t short term until owning property for a year. Morales suggested checking with City of San Franciscoabout STRs and get stats there.What else can Vail Local Housing Authority(VLHA)dobesides Vail InDEED? Per Ruther the Council members on the housing subcommittee are looking for carrots, not stick or additional STR regulations.The Housing departmentwill bring this back for discussion at the August 13 meeting. Lindstrom reiterated the Economic Planning Systems (EPS) report is received prior to Town Council August 6 meeting. 4.3.Annual Deed Restriction Compliance Verification Policy Recommendation Ruther said this was a Town Council request to review. He noted 8 owners are being summoned for failure to comply in 2018. The Town has a zero- tolerance policy. The Councilmembers wanted to know how to move forward. Wilkins said use a monetarypenalty. McDougall thought those deed restrictions whichare to rent/live and submit affidavit is egregious and should be tolerated. Morales reiterated there is a contract between both owner and Town of Vail. Ruther noted it may be helpful moving forward to have acknowledgement that the deed restriction and housing guidelines have been read. We want to share with Council the Town goes to an administrative penalty fee. There are 2 types, non-residency and not complying with deed restriction. Recommend what the change is and how to implement policy to Council. Morales and McDougall both agree it is black and white documentation to get owners into compliance. McDougall believes if the owner is not complying with the restriction to act quicklyto resolve. The Board thinks a penalty fee would be the obvious next step. Discussion ensued. Compliancerequired and if you don’t after adate assess fee and increase until compliant. Housing will come back to the Board with some policy objectives. 5.Matters from the Chairman and Authority Members Lindstrom provided a housing subcommittee update. Council had their first budget meeting. There is a possibility of creating a housing investment fund to provide ability to use funds for unexpected projects. There was discussion with finance department to add Vail InDEED as assets. Wilkins stated Stillwater isexpectedto be fully rented by January 2020. 6 West ApartmentshaveTCOs on6 buildings and has been paid a portion of the Vail InDEED funds. Eagle County has 2 employees living in units. Avon Tract F has sold(across from Traer Creek). Hockett Gulch in Eagle is coming up on their planning agendas. Hockett Gulch is the parcel of land across from Vail Health in Eagleon Sylvan Lake Road. Mountain View has done garage work and is now moving forward to start building vertical. There are 15 required deed restrictions in this project. Lindstrom questioned Solar Vailstatus. Ruther noted Sonnenalp is nearing completion. Sonnenalp needsto reassign 9 units to replace the former Solar Vail units. Is there a precedent for moving/floating restrictions? No per Ruther not at this time. It is a restriction on the land. The Housing department is discussing with the Town attorney. Wilkins asked if there is anything anticipated for Eagle River preservethe old quarry in Edwards.Ruther hasn’t heard. Per Ruther finance and council were to discuss a better way to use construction use taxas a possible funding source for housing. Currently this is fact finding. August 6 the Housingdepartmentwill share ideas regarding redevelopment of Timber Ridge.Ruther believes the VLHA will be asked to provide recommendations to move redevelopment forward. Lindstrom met with David Cunningham regarding next steps for a housing tax. Next opportunity will be the 2020 election. Turn out be high, messaging will be challenging due to all 2020 election communications. Cunningham suggested communicating with the public prior to 2020. It is not just VLHA but also TC, 12 members. East Vail proposal is affecting how housing is considered by the public. Cunningham is to speak with Silverthorn regarding ToV communication plan. There is a public perception the VLHA is making decisions without authority.Use the TC election period to engage the public Ruther thought future conversation may revolve around Vail InDEED in TOV but outside town’s jurisdiction. Ruther suggested the applicant submit Vail InDEED application for consideration. Per town attorney VLHA has some latitudeto act on a case by case basis. They could make a recommendation to Council for their final decision. The Town would need to discuss enforcement policies. 6.Executive Session 6.1.Executive Session per 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: one (1) submitted Vail InDEED application and program details. Presenter: Lynne Campbell, Housing Coordinator Wilkins motioned to enter executive session. MOTION: WilkinsSECOND: MoralesVOTE: 4-0 Wilkins motioned to exit executive session. MOTION: WilkinsSECOND: MoralesVOTE: 4-0 7.Any Action as a Result of Executive Session 7.1.Any Action as a Result of Executive Session Wilkins proposed staff continue negotiation with the Vail InDEED applicants as discussed in executive session. MOTION: Wilkins SECOND: MoralesVOTE: 4-0 8.Adjournment 8.1.Adjournment at 5:00 PM (estimated) McDougall motioned to adjourn the meeting at 4:52PM. MOTION: McDougallSECOND: WilkinsVOTE: 4-0 9.Future Agenda Items EHU Capital Improvements, Labor Cost Housing Data Housing Sites Discussion Civic Area Plan Proposed 2020 Budget Discussion Annual Deed Restriction Compliance Verification Policy Recommendation 10.Next Meeting Date 10.1.Next Meeting Date August 13, 2019