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HomeMy WebLinkAbout07. Vail Town Council EPS Report Presentation Memo 08202019 To: Vail Town Council From: Vail Local Housing Authority Date: August 20, 2019 Subject: 2019 Economic Values and Community Benefits of Vail’s Investment in Deed- Restricted Homes Report 1. SUMMARY The purpose of this memorandum is to present the findings of the “2019 Economic Values and Community Benefits of Vail’s Investment in Deed-Restricted Homes Report”. The Report was commissioned at the direction of the Vail Local Housing Authority and completed by Economic Planning Systems. Funding for the Report was provided by the Vail Local Housing Authority. The Report is intended to help direct housing policy and serve as a framework for decision makers when deciding on matters related to investing in deed-restricted homes in Vail, and to a lesser extent, the greater region. The key findings of the Report include: Each investment in one resident-occupied, deed-restricted home in Vail of $65,000 yields the following: 1) 5% annual return on investment or $3,200 2) up to $312,650 in community benefits, economic value and opportunity costs to the community which is an investment multiplier of 4.81X 3) the annual reduction of 8.5 MTCO2e 4) the avoidance of $8,400 in annual business expenses associated with employee turn over and recruitment 2. BACKGROUND The availability of homes for residents and employees has been a challenge for Vail for more than 45 years. As far back as 1973 this issue has been at the forefront of community conservations regarding the ongoing success of the Vail community and the ability to realize Vail’s vision to be the premier international mountain resort community. To that end, in 1973, the Vail Town Council adopted The Vail Plan. That plan document highlighted three areas of community focus, 1) The need to support and grow a year-round economy 2) The adequacy of public parking facilities and loading and delivery systems, and 3) The importance of housing for persons working in Vail Today, there are more than 875 homes with deed-restrictions recorded limiting occupancy to persons living and working in the greater Vail community. A large percentage of these deed- restrictions were acquired with no expenditure of public funds through partnerships with the private sector as a result of development impact mititgation. Conversely, many others, like Timber Ridge Village Apartments, Vail Commons, North Trail Townhomes, Chamonix Vail, were acquired or developed through the investment of tax payer dollars. More recently, the Vail Town Council and the Vail Local Housing Authority launched the innovative Vail InDEED program. The objective of this program is to protect and preserve existing homes in the community for resident occupancy through the purchase of a deed- restriction covenant on the property. More than $7.9M has been invested to date resulting in 121 new deed-restrictions and homes for more than 240 Vail residents. The 2019 Economic Values and Community Benefits of Vail’s investment in Deed-Restricted Homes Report is an attempt to quantify the value and the benefits of the Town’s investments. 3. EXHIBITS A. 2019 Economic Values and Community Benefits of Vail’s Investment in Deed-Restricted Homes Report Town of Vail Page 2