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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 MUR\57037\436628.01 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 MUR\58179\432486.01 1 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. MUR\58179\432486.01 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. MUR\58179~432486.01 3 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: MUR\58179\432486.01 Cj 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 MUR\58179\432486.01 6 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 MUR\58179\432486.01 8 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). F:\Userslcdev\RUSS1Projects\Lionshead\TIF\TIF Legal Docs\Lionshead\PublicFacilitiesPLanwithTIF316.doc r: MUR\58179\432486.01 9 figure ~- Plan Area B Fq~e2 Sway ~~ ~~M W MUR~,581'i9~32g86.Ot K..v•sm ~..a (~ xa~° '