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HomeMy WebLinkAbout2020-08-25 TROC Meeting Results TOWN OF VAI ' Timber Ridge Operating Committee Meeting Results Tuesday, August 25, 2020 8:30-9:30AM Zoom eetin 75 South Frontage Road West, Vail, CO 81657 Members Present: Members Absent: Scott Robson George Ruther Kathleen Halloran Greg Hall John King Corum Real Estate: Ericka Weston Brandon Crow Staff: Lynne Campbell Agenda: Call to Order 1. Call to Order A quorum being present the meeting is called to order at 8:35AM. Also present is Ericka Weston and Brando Crow from Corum Real Estate. 2. Review and Approve July 28, 2020 Meeting Results MOTION: KING SECOND: ROBSON VOTE: 3-0 APPROVED 3. 2021 Timber Ridge Budget Presenter: Kathleen Halloran, Finance Director and Ericka Weston, Corum Real Estate The Committee reviewed the proposed 2021 Timber Ridge budget. Per Halloran the budget can be approved at next meeting which next goes to Council on November 3, 2020. Rent increases and policy was discussed by the Committee. Corum noted some increases have be implemented. 30 of 43 leases are coming up for renewal. Per Weston there hasn't been any push back and suggested continuing with rent increases. Vail Resort (VR) rents are valid through May 2021 when the lease expires. VR and free market units rented at same rate. The Master lease contains 54 units of the 96 on property. The Committee agreed to begin review of a new VR lease and pricing to allow time to prepare for updates, reviews and signatures prior to April 30, 2021. Weston will reach out to Jeremy at VR for lease renewal effective May 1, 2021. Halloran reviewed the current operating expenses and capital. Per Weston there have been no admin increases. Payroll will increase due to benefits, Corum issues a 3% merit increase midyear. This is acceptable with Committee. Corum anticipates a 2-4% annual utility increase. Property insurance is being reviewed. Gutters need heat tape, ice damming is significant, $25K for materials. King is not sure enough circuit in buildings to run tape. A few buildings are of more concern than others. Weston anticipates a 4.5% budget increase. ROI increased to 8%. Budget includes no large vacancies of VR rentals. Anticipate $24K vacancy loss vs. $76K Halloran noted the Interest expense due of$8M. Review of building maintenance included building K and O. Five-year replacements are coming due on building K, the last renovation was in 2016. Building 0 has had only $20K thus far. Crow suggested plumbing and roofs. Weston wants to inspect each unit prior to appliance replacement. Crow said inspections were performed last year. How extensive does TOV want to do? King reviewed previous unit/ building work. He suggested the Committee review the long-term plan. Previously the Town was looking at redevelopment in 7 years, which is coming up. Replacing the siding will require the building coming up to current energy codes. Per Robson redevelopment timelines are back in discussion. Corum will remove $354K from capital for 2021. Halloran suggested reviewing payback of debt. Pay back 1.9M prior to redevelopment. 4. Timber Ridge Rental Renewal and Abatement Updates Presenter: Corum Real Estate What is hold up? Most residents are waiting on Salvation Army. Some are still going through paperwork. Corum is concerned residents with 2-month balance may not be able to catch up. Security deposit is still option. This would be offered to residents 2 months behind. Goal not to care over into 2021. Robson asked Finance to check on Salvation Army status of remain funds. 5. Timber Ridge Rockfall Mitigation Update Greg Hall, Public Works Director No discussion. 6. Laundry Room Repair CPI Reimbursement Status Brandon Crow, Corum Real Estate Crow is setting up call regarding reimbursement. He will provide update at the September 29th meeting. 7. Other Business Nothing was discussed. 8. Adjournment 9:30AM (estimated) The meeting adjourned at 9:20AM. MOTION: KING SECOND: ROBSON VOTE: 3-0 APPROVED 9. Future Items for Discussion • Timber Ridge Redevelopment • Note Pay Down or Off • Vail Resorts Lease Discussion • 2021 Budget Approval Next Meeting September 29, 2020 Please call 970-479-2136 for additional information. Sign language interpretation is available upon request with 48-hour notification dial 711.