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Home My WebLink About04. Town of Vail Community Outreach Project Draft G 041221PRESENTATION BY George Ruther, Housing Department Mia Vlaar, Economic Development Town of Vail Staff Town of Vail Community Outreach Project Spring 2021 Town of Vail | Community Outreach Project Presentation | VailGov.com Town of Vail Community Outreach Goals and Objectives To educate, inform, and engage the Vail community regarding the issues of Affordable Housing, Special Events, and the Town’s seasonal and year-round marketing efforts. To listen, learn, and understand the Vail community’s thoughts, opinions, and viewpoints regarding these important issues. To collect, compile and summarize the Vail community’s thoughts and feedback to help staff and council members make informed decisions in the future. Town of Vail | Community Outreach Project Presentation | VailGov.comTown of Vail | Community Outreach Project Presentation | VailGov.com Vail Local Housing Authority Mission & Objectives Programs & Initiatives Accomplishments Budget Information Town of Vail | Community Outreach Project Presentation | VailGov.com Vail Local Housing Authority Mission The VLHA is comprised of a 5-member board of directors, appointed by the Vail Town Council. Each authority member is appointed to a 5-year term. The volunteer board that is responsible for VLHA budget approval, advocacy, coordination with Town staff on housing initiatives, and recommendations to Town Council for strategic long-term planning and policy. The VLHA places a special emphasis on resident housing initiatives and works to ensure there is deed restricted housing for at least 30% of Vail’s workforce in Vail. This is accomplished through the acquisition of 1,ooo new deed restrictions by the year 2027. The VLHA housing initiatives are funded by the capital projects fund. The VLHA currently does not have a dedicated funding source. “To maintain and expand the supply of resident housing opportunities to meet this broadening community need through public and private-sector partnerships” Town of Vail | Community Outreach Project Presentation | VailGov.com Vail Local Housing Authority Vail InDeed Program Town of Vail | Community Outreach Project Presentation | VailGov.com Vail Home Partners & Vail Housing 2027 Strategic Plan Town of Vail | Community Outreach Project Presentation | VailGov.com Other Vail Local Housing Authority Accomplishments Acting as special agent for the Town of Vail, the VLHA was instrumental in the development of Middle Creek Village Apartments, a 142-unit affordable rental development. On behalf of the Town, the VLHA oversaw development of the Arosa Duplex, Vail’s only LEED Silver Certified resident housing. Funded the 2019 Economic Value & Community Benefits of Resident Housing Report demonstrating a 5% rate of return resident housing investments. Town of Vail | Community Outreach Project Presentation | VailGov.com Town of Vail Investment in Resident Housing Town of Vail Housing Policy Statements #1 & #10 – •Housing is Infrastructure –“Homes for residents are critical infrastructure in Vail” •Funding is Policy -“The Vail Town Council will fund resident housing opportunities and solutions.” The current cost per deed restriction averages +/-$69,000 creating an estimated need of $6.9M annually to achieve the housing goal. Capital Project Fund balance drops below $3M with the next five years creating more difficult choices amongst capital project needs. The Town is presently investing $690,000 in the entitlement process for the Residences at Main Vail Town of Vail | Community Outreach Project Presentation | VailGov.com Benefits of a Dedicated, Long-Term Source of Funding for Housing •Funding creates deed restrictions in support of resident housing •Establishes a reliable source of revenue for bonding capacity and debt service •Creates predictability in sources of revenue for investment •Improves the accuracy of budgeting enabling the Town to better forecast future funding needs •Reduces fiscal stress on the capital projects fund when choosing to address all the Town’s infrastructure needs •Increases responsiveness to future development opportunities Town of Vail | Community Outreach Project Presentation | VailGov.comTown of Vail | Community Outreach Project Presentation | VailGov.com Vail Local Marketing District Mission & Objectives Programs & Initiatives Accomplishments Need for Year-Round Marketing Peer Lodging Tax Comparison Town of Vail | Community Outreach Project Presentation | VailGov.com Vail Local Marketing District Mission The Vail Town Council sits as the Vail Local Marketing District. The VLMD appoints marketing professionals to a 9-member Vail Local Marketing Advisory Council. The Council’s purpose is to make marketing recommendations to the VLMD to promote non-winter visitation to Vail. The budget for the 9- member VLMDAC is funded by a 1.4% Vail lodging tax that was approved by voters in 1999. The mission of the VLMDAC is the organization, promotion, marketing and management of public events; activities in support of business recruitment, management and development; and coordinating tourism promotion activities. No revenue collected may be used for any capital expenditures, with the exception of tourist information centers. Town of Vail | Community Outreach Project Presentation | VailGov.com Town of Vail Local Marketing District Programs & Initiatives Town of Vail | Community Outreach Project Presentation | VailGov.com Other Vail Local Marketing District Accomplishments Development in 2020 of DiscoverVail.com, the new online home for Vail, a premier international mountain resort, with comprehensive content and resources for the Vail guest Establishment of a new robust data systems infrastructure to capture and segment customer data through Vail Free WiFi, partnerships with lodging, restaurants, retail and events and other mechanisms Creation of a new Lodging Liaison who works directly with the lodging community to improve results and process and more closely align with the VLMD marketing and promotions Town of Vail | Community Outreach Project Presentation | VailGov.com Year-Round Marketing Effort: Why Do We Need It? 60% 58% 52% 54% 55%55%55% 58%58%57%58% 51% 54% 43% 45% 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 HISTORIC ACTUAL OCCUPANCY RATE –WINTER SEASON Source: Destimetrics The last time we hit 60% occupancy was during the 2006/07 winter season. Since then, there has been a relatively flat to downward trend in winter occupancy. even before COVID-19. Town of Vail | Community Outreach Project Presentation | VailGov.com Year-Round Marketing Effort: Why Do We Need It? 40% 37% 34% 36% 38% 41%42%43% 44% 49%49%48% 45% 31% 30% 35% 40% 45% 50% 55% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HISTORIC ACTUAL OCCUPANCY RATE –SUMMER SEASON The summer occupancy rate showed steady growth before reaching a 14-year peak in 2017. However, growth slowed after 2016 and the rate was beginning to decline even before COVID-19. Source: Destimetrics Town of Vail | Community Outreach Project Presentation | VailGov.com Sales Plus Lodging Taxes –Peer Comparison The Town of Vail’s lodging tax rate is lower than the rate of peer municipalities in Colorado. In Vail, the lodging tax is only adequate to support non-winter marketing. 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% Vail Beaver Creek Aspen Breckenridge Telluride Crested Butte 8.40%9.75%9.30%8.88%8.65% 13.40% 1.40% 0.96%2.00%3.40% 6.50% 5.00% Sales Plus Lodging Tax Comparison Sales Tax Lodging Tax Source: Town of Vail/Vail Valley Partnership Town of Vail | Community Outreach Project Presentation | VailGov.com Why Increase the Lodging Tax Increased Marketing Funding is Needed Vail Winter occupancy has been falling since 2016 Non-winter occupancy, the focus of the VLMD, showed substantial growth until 2016 but has recently fallen off Vail Resorts marketing has changed: o Consolidation of marketing staff in Broomfield o Focus on Epic Pass (1.4 million sold 2020) and 34 resorts o Reduction of funding for Vail special events and Vail-specific marketing Fierce competitive landscape –all resorts vying for new customers Vail’s lodging tax is one of the lowest in the its competitive set, and is only adequate to support non-winter marketing VLMD should control Vail’s destiny with year-round marketing Vail Community Outreach Project Spring 2021 Planning for the Town’s Future…. What is your vision of Vail in 10 years? What are possible funding sources being considered to get there? Town of Vail | Community Outreach Project Presentation | VailGov.com Thank you for your time today and sharing your thoughts, opinions and viewpoints with us.