HomeMy WebLinkAbout2005-09 Approving the Amended Lionshead Public Facilites Development Plan to include Tax Increment and Bond Financing as Authorized by the Urban Renewal LawRESOLUTION N0.9
Series of 2005
A RESOLUTION APPROVING THE AMENDED LIONSHEAD PUBLIC FACILITIES
DEVELOPMENT PLAN TO INCLUDE TAX INCREMENT AND BOND FINANCING AS
AUTHORIZED BY THE URBAN RENEWAL LAW.
WHEREAS, an urban renewal plan entitled the Lionshead Public Facilities Development
Plan for the Lionshead Area was approved by the Town Council of the Town of Vail pursuant to
Part 1 of Article 25 of Title 31, C.R.S., on March 16, 2004; and
WHEREAS the Vail Reinvestment Authority has determined it is now appropriate to
include provisions for tax increment and bond financing as authorized by the Urban Renewal
Law in an Amended Lionshead Public Facilities Development Plan; and
WHEREAS, such an amendment to the Lionshead Public Facilities Development Plan
constitutes a substantial modification of the Lionshead Public Facilities Development Plan
requiring compliance with all procedural requirements of the adoption of the original Lionshead
Public Facilities Development Plan; and
WHEREAS, the Amended Lionshead Public Facilities Development Plan has previously
been submitted to the Town of Vail Planning and Environmental Commission for its review and
recommendations as to conformity with the Vail Comprehensive Plan pursuant to C.R.S. §31-
25-107(2); and
WHEREAS, the Town of Vail Planning and Environmental Commisslon has determined
that the Amended Lionshead Public Facilities Development Plan does conform to the Town of
Vail Comprehensive Land Use Plan; and
WHEREAS, no property in the Amended Lionshead Urban Renewal Area has been
included in an urban renewal plan previously submitted to the Town Council of the Town of Vail;
and
WHEREAS, the Town Clerk of the Town of Vail has published the notice of the time,
place, and purpose of the public hearing to consider the adoption of the Amended Lionshead
Public Facilities Development Plan in the Vail Daily in conformance with C.R.S. §31-25-107(3);
and
WHEREAS, the Town Council of the Town of Vail has provided written notice of the
public hearing to consider the adoption of the Amended Lionshead Public Facilities
Development Plan to property owners, residents, and business owners within the proposed
Lionshead Urban Renewal Area at their last known addresses in conformance with C.R.S. §31-
25-107(4)(c); and
WHEREAS, the Eagle County Commissioners have received notification of and copies
of the Amended Lionshead Public Facilities Development Plan as well as such additional
information as is required by C.R.S. §31-25-107(3.5); and
Resolution No. 9, Series of 2005
WHEREAS, the Eagle County School District has received notification of and copies of
the Amended Lionshead Public Facilities Development Plan and has been given an opportunity
to participate in an advisory capacity; and
WHEREAS, no more than one hundred twenty days have passed since the
commencement of the first public hearing of the Amended Lionshead Public Facilities
Development Plan, and
WHEREAS, Town Council of the Town of Vail has conducted a public hearing and
considered the public testimony received regarding the Amended Lionshead Public Facilities
Development Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
VAIL THAT:
1. The Amended Lionshead Public Facilities Development Plan conforms to the
Comprehensive Land Use Plan, which is the general plan for the development of the Town of
Vail.
2. The Amended Lionshead Public Facilities Development Plan wil! afford maximum
opportunity, consistent with the sound needs of the Town of Vail as a whole, for the
rehabilitation or redevelopment of the Lionshead Plan Area by private enterprise.
3. The Amended Lionshead Public Facilities Development Plan is hereby approved.
enINTRODUCED, READ, APPROVED AND ADOPTED this 7 day of June, 2005.
Rodney Slifer, Mayor, Town of Vail
ATTE T:
O; •• ••~
rel`ei Donaldson, Town Clerk, Town of Vail SEAL
Resolution No. 9, Series of 2005 2
AMENDED
LIONSHEAD
PUBLIC FACILITIES DEVELOPMENT PLAN
VAIL REINVESTMENT AUTHORITY
June 2005
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TABLE OF CONTENTS
I. INTRODUCTION ..................................................................................................................1
1.1 Preface ...........................................................................................................................1
1.2 Background ................................................................................................................... 1
1.3 Definitions ......................................................................................................................2
2. LEGISLATIVE FINDINGS ...................................................................................................2
2.1 Qualifying Conditions ................................................................................................... 2
2.2 Projects ..........................................................................................................................3
2.3 Planning Approval ........................................................................................................ 3
2.4 Consultation .................................................................................................................. 4
2.5 Public Hearing ............................................................................................................... 4
2.6 Boundaries of the Plan Area ...................................................................................... 4
2.7 Other Findings .............................................................................................................. 4
3. DESCRIPTION OF PLAN OBJECTIVES .........................................................................5
4.PLAN IMPLEMENTATION .................................................................................................5
4.1 Redevelopment and Rehabilitation Actions .............................................................6
4.2 Property Acquisition .....................................................................................................6
4.3 Relocation Assistance and Payments 6
4.4 Public Improvements and Facilities.6
4.5 Redevelopment Agreements .......................................6
4.6 Interagency Cooperation 7
4 7 Advisory Committee 7
5. PROJECT FINANCING ...........................7
5.1 Tax Increment Financing .......................................................7
5 2 Additional Taxing Entities 8
5.3 Participating Interest in Projects ................................................................................8
6. MODIFICATIONS TO THIS PLAN ....................................................................................8
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LIONSHEAD PUBLIC FACILITIES INVESTMENT PLAN
I. June 20051NTRODUCTION
1.1 Preface
This Amended Lionshead Public Facilities Investment Plan ("Amended Plan") has been
prepared by the Vail Reinvestment Authority ("VRA") for adoption by the Town Council
of the Town of Vail pursuant to provisions of the Urban Renewal Law of the State of
Colorado, Article 25 of Title 31, Colorado Revised Statutes. This Amended Plan is
prepared and adopted to satisfy the requirements of § 31-25-107, C.R.S., that an urban
renewal plan be adopted by the governing body of the municipality before an urban
renewal authority undertakes an urban renewal project. The administration of this
project and the enforcement and execution of this Amended Plan shall be performed by
VRA.
1.2 Background
The Lionshead area is one of four base areas for the Vail Mountain Ski Area. The area
was originally developed from 1972-1974 as the base for the Lionshead gondola.
Lodging, condominiums and retail were constructed over a period of years, often without
coordinated planning of circulation and public transportation facilities of the area. The
Lionshead parking garage was built in 1981 significantly increasing the pedestrian traffic
in the area. An extensive bus system has developed as the major means of moving
people around Vail. The Lionshead area now accounts for approximately 45°l0 of the
skier access to Vail Mountain. As a result of this rapid development activity, the traffic
and transportation network for personal vehicles, pedestrians and delivery vehicles does
not work well. There are many vehicle/pedestrian conflicts creating unsafe conditions
throughout the Lionshead area.
In addition, the public infrastructure in the Lionshead area has deteriorated. Extremes of
temperature and topography as wel{ as the intense utilization of the area by residents
and guests has caused streets, sidewalks, curbs and gutters, and retaining walls to be
subject to accelerated deterioration. Inadequate attention to runoff from impervious
surfaces and deteriorated drainage facilities have contributed to water quality
deterioration in the Gore Creek.
The Lionshead Redevelopment Master Plan, adopted in 1999, identifies specific public
infrastructure improvements that need to occur and provides incentives for private
redevelopment. A major implementation action in the Master Plan is the redevelopment
of the Lionshead gondola and Sun Bird building sites into ahigh-end hotel. Other major
development sites include the remodeling of the Marriott and Antler properties. These
development projects will place many more guests and residents into the Lionshead
area. To properly support this major private reinvestment in Lionshead, the supporting
transportation infrastructure needs to be upgraded. Sidewalks and streets need to be
constructed or reconstructed. A transportation center must be built to accommodate the
increased usage of the Lionshead area, and improvements to the Frontage Road are
needed to serve the increased traffic. This Amended Planis intended to provide the
financial mechanisms necessary to support the renovation and reconstruction of the
public infrastructure in Lionshead.
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The Lionshead Public Facilities Development Plan was originally adopted in March 2004
without provisions for the use of tax increment financing which is authorized by the
Urban Renewal Law. Since adoption of the Plan in March 2004, The VRA has entered
into the Lionshead Reinvestment Agreement, dated August 3, 2004, with the Vail
Corporation and the VRA and the Town have entered into the Gore Creek Place
development Agreement, dated November 8, 2004, and the Core Site Development
Agreement, dated November 8, 2004, These Agreements commit the Vail Corporation
to the construction of certain improvements in Lionshead and make it necessary for the
VRA and the Town to construct certain public improvements which wilt support and
complement the public and private improvements to be constructed by the Vail
Corporation. It is now necessary and appropriate to authorize the use of tax increment
funds to be generated by the new construction as the funding vehicle for the public
improvements to be constructed by the Town and VRA.
1.3 Definitions
Amended Plan: The Lionshead Public Facilities Investment Plan as amended to include
tax increment financing.
Cooperation Agreement: Any agreement between VRA and the Town of Vail or any
other public body regarding action taken pursuant to any of the powers set forth in the
Urban Renewal Law, or in any other provision of Colorado law, for the purpose of
facilitating public undertakings deemed necessary or appropriate by VRA under this
Plan.
Plan: This Lionshead Public Facilities investment Plan as it may be modified from time
to time.
Plan Area: The area described in Section 2.6 of this Plan, and depicted on Figure 1,
which has been found to be blighted and for which the undertaking of urban renewal
projects is declared to be necessary.
Redevelopment Agreement: An agreement between VRA and a developer or
developers representing the redevelopment or rehabilitation of property within the Plan
Area.
2. LEGISLATIVE FINDINGS
2.1 Qualifying Conditions
Based on the Lionshead Reinvestment Study prepared by URS Corporation, dated
February 2004, and evidence presented at the public hearing, the Town Council finds
that there exists blight, as defined by § 31-25-103(2), C.R.S., in the Plan Area.
The Lionshead Reinvestment Study found that blight conditions were prevalent
throughout the area. The conditions found to exist include:
a) Defective and inadequate street layout: Street system does not
provide adequate access for motorists, pedestrians and emergency
vehicles. Turning radii are often inadequate.
MUR\58179\432486.01 2
b) Unsafe conditions that endanger life or property: Traffic and
circulation patterns are dangerous for both pedestrians and
motorists.
c) Deterioration of site improvements: Public parking areas and
concrete retaining walls are deteriorating. Curbs and gutters on
public property also show deterioration.
d) Defective or unusual conditions of title rendering the title
unmarketable: Restrictive covenants controlling uses on certain
properties and other conditions of title impair the redevelopment of
key parcels in the Plan Area. {n many instances, covenant
provisions conflict with or have been ignored by prior development.
e) Environmental contamination: Runoff from unpaved parking areas
and stormwater runoff from paved surfaces contaminate Gore Creek.
f) Inadequate public improvements: Streets and sidewalks on public
property are not adequate for the traffic and do not provide a safe
separation for pedestrians from motor vehicles. Pavement, curb and
gutter and retaining walls on public property are deteriorating.
Overhead utilities are presents and stormwater management is
inadequate.
The Town Council finds that the presence of these factors substantially impairs or
arrests the sound growth of the Town of Vail, retards the provision of housing
accommodations, constitutes an economic and social liability and is a menace to the
public health, safety, morals and welfare of the Town of Vail.
2.2 Projects
The Plan Area is appropriate for one or more urban renewal projects and other
undertakings of the VRA as authorized by the Urban Renewal Law.
2.3 Planning Approval
A general plan for the Town of Vail, known as the Vail Comprehensive Plan, has been
adopted by the Town Council. In addition, the Lionshead area is the subject of the
Lionshead Redevelopment Master Plan which is the Town's official planning document
for guiding the redevelopment of the Lionshead area and is a part of the Vail
Comprehensive Plan. This Amended Plan has been submitted to the Planning and
Environmental Gommission of the Town of Vai! for review and recommendations as to its
conformity with the Vail Comprehensive Plan and the Lionshead Master Plan. The
Planning and Environmental Commission met on May 23, 2005 and has submitted its
written recommendations via a staff memorandum to the Town Council that the
Amended Lionshead Public Facilities Development Plan is in conformity with the Vail
Comprehensive Plan.
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2.4 Consultation
This Amended Plan has been submitted to the Board of County Commissioners of Eagle
County as required by the Urban Renewal Law. The Eagle County School District has
been advised of this Amended Plan and has been given an opportunity to provide
comments.
2.5 Public Hearing
The Town Council of the Town of Vail has held a public hearing to consider this
Amended Plan after public notice thereof in compliance with the Urban Renewal Law in
the Vail Daily describing the time, date, and purpose of the public hearing, identifying the
Plan Area and outlining the general scope of the projects being considered for
implementation pursuant to this Plan. Pursuant to C.R.S. §31-25-107(4)(c), notice of the
public hearing was provided to owners, residents, and business owners in the Plan Area
at their last know address at least 30 days before the date of the public hearing..
2.6 Boundaries of the Plan Area
The boundaries of the Plan Area shall be as set forth in Figure 1 attached hereto. The
Town Council finds that the boundaries of the Plan Area have been drawn as narrowly
as feasible to accomplish the planning and development objectives of this Plan.
2.7 Other Findings
2.7.1 One or more of the projects will require the demolition and clearance,
subject to other restrictions, of certain public improvements within the
Plan Area as provided in this Plan. Such actions may be necessary to
eliminate unsafe conditions, eliminate obsolete and other uses detrimental
to the public welfare, and otherwise remove and prevent the spread of
deterioration.
2.7.2 In order to eliminate or reduce the qualifying conditions currently
existing within the Plan Area, as well as those qualifying conditions
which may be reasonably anticipated to develop within the Plan
Area in the absence of public action, it is the intent of the Town
Council in adopting this Amended Plan that VRA exercise ail
powers authorized to be exercised by VRA under the Urban
Renewal Law and which are necessary, convenient or appropriate
to accomplish the objectives of this Plan. It is the intent of this
Amended Plan that VRA shall exercise all such powers as may now
be possessed or hereafter granted to VRA for the elimination of
qualifying conditions within the Plan Area.
2.7.3 Many properties in the Plan Area are subject to restrictive covenant
provisions from previous subdivisions of property in Vail and Lionshead.
In many cases, the covenant provisions conflict with one another and in
some cases have been ignored by existing development. These
restrictive covenants create an impediment to the redevelopment of
MUR\58179\432486.01 4
properties within the Plan Area, particularly the financing of improvements
which are key to the redevelopment of the Plan Area. VRA is authorized
to use the power of eminent domain, with the consultation and
concurrence of the owner of the underlying fee interest, to eliminate
restrictive covenant provisions and other conditions of title which prevent
redevelopment of properties within the Plan Area.
2.7.4 If it becomes necessary for individuals, families or businesses to relocate
as a result of the implementation of this Plan, a feasible method exists for
the relocation of individuals, families, and business concerns that may be
displaced, insuring that decent, safe and sanitary dwelling
accommodations and business locations can be made available.
2.7.5 The powers conferred by the Urban Renewal Law are for public uses and
purposes for which public money may be expended and the police
powers exercised, and this Amended Plan is in the public interest and
necessity, such finding being a matter of legislative determination by the
Town Council.
2.7.6 VRA may, in its discretion, issue bonds, including bonds or other
obligations, to the extent permitted by law.
3. DESCRIPTION OF PLAN OBJECTIVES
This Amended Plan is an important tool to address the problems confronting the
Lionshead area. The Amended Plan helps to further the goals for the area previously
outlined in the Lionshead Redevelopment Master Plan. The objectives for the Amended
Plan include the following:
Create a sense of place and an improved aesthetic character for Lionshead for
both residents and guests.
Renovate or redevelop the deteriorated and/or outdated residential and
commercial buildings and provide enhanced amenities.
Enhance the aesthetic appearance of the area to make it more appealing.
Improve pedestrian, bicycle, mass transit and auto accessibility and circulation.
Eliminate impediments to the redevelopment of key facilities with the Plan Area.
Upgrade and restore public infrastructure including transportation facilities,
parking, sidewalks and streetscapes.
4. PLAN IMPLEMENTATION
In order to accomplish the objectives of this Amended Plan and to fully implement this
Plan, VRA shall be authorized to undertake the following activities:
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4.1 Redevelopment and Rehabilitation Actions
Redevelopment and rehabilitation actions within the Plan Area may include such
undertakings and activities as are in accordance with this Plan, the Lionshead Master
Plan, and the Urban Renewal Law, including without limitation: demolition and removal
of public buildings and improvements as set forth herein; installation, construction and
reconstruction of public improvements as set forth herein; elimination of unhealthful,
unsanitary or unsafe conditions; elimination of obsolete or other uses detrimental to the
public welfare; and other actions to remove or to prevent the spread of deterioration.
VRA is authorized to negotiate and enter into agreements with landowners, developers,
and investors regarding appropriate projects throughout the Plan Area which will
generate incremental property tax revenues.
4.2 Property Acquisition
The principal purpose of this Amended Plan is the rehabilitation and enhancement of
public infrastructure in the Plan Area and the support of new private investment
occurring on private property. Restrictive covenants and other conditions of title interfere
with new private investment. The power of eminent domain as authorized by the Urban
Renewal Law may be utilized as VRA determines necessary to eliminate and remove
restrictive covenants and other conditions of title which interfere with new private
investment with the consultation and concurrence of the owner of the underlying fee
interest.
4.3 Relocation Assistance and Payments
In the event it is necessary to relocate or displace any business or other commercial
establishments as a result of any property acquisition, VRA may adopt relocation
policies for payment of relocation expenses. Such expenses may include moving
expenses, actual direct losses of property for business concerns, and goodwill and lost
profits that are reasonably related to relocation of the business, resulting from its
displacement for which reimbursement or compensation is not otherwise made.
4.4 Public Improvements and Facilities
VRA may undertake certain actions which would make the Plan Area more attractive for
private investment by providing public improvements consistent with the Lionshead
Master Plan. These improvements include street and traffic improvements, streetscape
improvements, a transportation center, landscaping, park and recreation facilities, utility
improvements, open space acquisition, stormwater improvements, public art projects,
and other similar improvements necessary to carry out the objectives of the Lionshead
Master Plan.
4.5 Redevelopment Agreements
VRA is authorized to enter into one or more Redevelopment Agreements with
developer(s) and such other entities as are determined by VRA to be necessary or
desirable by VRA to carry out the purposes of this Plan. Such Redevelopment
Agreements may contain such terms and provisions as shall be deemed necessary or
appropriate by VRA for the purpose of undertaking the activities contemplated by this
Amended Planor the Urban Renewai Law, and may further provide for such
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undertakings by VRA, including financial assistance, as may be necessary for the
achievement of the objectives of this Amended Planor as may otherwise be authorized
by the Urban Renewal Law.
4.6 Interagency Cooperation
VRA may enter into one or more Cooperation Agreements with the Town of Vail or other
public bodies pursuant to the Urban Renewal Law. Cooperation Agreements may
provide, without limitation, for financing, for construction of public improvements, for
administration, for technical assistance and for other purposes.
4.7 Advisory Committee
VRA shall establish an advisory committee of Lionshead residential and commercial
property owners to advise the VRA on matters related to the implementation of the Plan.
The composition of the committee shall be determined by the VRA.
5. PROJECT FINANCING
5.1 Tax Increment Financing
The primary method of financing the projects undertaken in furtherance of this Amended
Plan shall be the use of property tax increment financing pursuant to
Section 31-25-107(9), C.R.S., which is by this reference incorporated herein as if set
forth in its entirety. If there is any conflict between the Urban Renewal Law and this
Amended Plan, the provisions of the Urban Renewal Law shall control. All property
taxes collected within the Ptan Area shall be divided as follows:
a) That portion of the taxes which are produced by the levy at the rate
fixed each year by or for each such public body upon the valuation
for assessment of taxable property in the Urban Renewal Area last
certified prior to effective date of the original approval of the Plan or,
as to an area later added to the Urban Renewal Area, the effective
date of the modification of the Plan, shall be paid into the funds of
each such public body as are all other taxes collected by or for said
public body.
b) Except as VRA may legally provide otherwise under the Urban
Renewal Law, the portion of such property in excess of the amounts
described in paragraph a), above, shall be allocated to and, when
collected, paid into a special fund to fund VRA's obligations with
respect to any project within the Plan Area, including payment of the
principal of, the interest on, and any premiums due in connection
with the bonds, loans or advances to, or indebtedness incurred by
whether funded, refunded, assumed, or otherwise) VRA for
financing or refinancing, in whole or in part, the projects in the Plan
Area.
c) When such bonds, loans, advances, and indebtedness, if any,
including interest thereon and any premiums due in connection
MUTt\58179\432486.01 7
therewith, have been paid, but in no event later than 25 years
following the adoption of this Amended Plan for the construction of
the projects' improvements, any excess property tax collections not
allocated pursuant to this paragraph or any Cooperation Agreement
between VRA and Town or other taxing jurisdiction, shall be paid into
the funds of said jurisdiction or public body. Unless and until the total
property tax collections in the Plan Area exceed the base year
property tax collections in the Plan Area, as provided in
paragraph a), above, all such property tax collections shall be paid
into the funds of the appropriate public body. VRA reserves the right
to enter into Cooperation Agreements with select taxing jurisdictions
relative to allocation of incremental tax revenues.
d) The adoption of this Amended Plan shall be deemed an adoption of
a provision that taxes, if any, levied after the effective date of the
approval of this Amended Plan upon taxable property in the Plan
Area shall be divided among VRA and various taxing entities for a
period of 25 years thereafter or such lesser period as provided in
Section 31-25-107(9), C.R.S., as exists on the date hereof, or in any
Cooperation Agreement between VRA and a county, the Town or a
special district.
5.2 Additional Taxing Entities
VRA recognizes that tax increment financing is the primary tool for funding
redevelopment activities. However, Colorado law allows the creation of additional
political subdivisions within a municipality to provide services within a defined area.
These entities include metropolitan and other special districts as well as business
improvement districts. These districts have available certain taxing powers that can
generate revenues in addition to those generated by tax increment financing.
VRA is committed to exploring a variety of strategies and mechanisms to complement
tax increment financing. VRA recognizes that it is imperative that financing mechanisms
be flexible and creative to provide necessary assistance to a broad range of
redevelopment activities.
5.3 Participating Interest in Projects
VRA may require a participating interest in private development projects for which it
provides financial assistance. Public assistance is frequently needed for redevelopment
projects in order to fill the gap between traditional equity and debt financing and the
additional costs of a redevelopment project. In the event the project generates revenues
at or greater than market return, the public should share in the success of the project.
The terms of the participating interest will be specified in the Redevelopment Agreement
at a level and on terms appropriate for each project.
6. MODIFICATIONS TO THIS PLAN
This Amended Plan may be amended or modified pursuant to provision of the Urban
Renewal Law as provided in § 31-25-107, C.R.S. Modifications to this Amended Plan
will require appropriate notification in accordance with the Urban Renewal Law, including
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submission to the Board of County Commissioners of Eagle County and written notice
provided to all property owners, residents, and owners of businesses in the Plan Area
not less than 30 days prior to the consideration of a substantial modification in
accordance with C.R.S. 31-25-107 (4)(c).
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