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HomeMy WebLinkAbout2021-07-06 Agenda and Supporting Documentation Town Council Afternoon Meeting Agenda VAIL TO W N C O U N C IL R E G U L AR ME E T IN G Agenda Town Council Chambers and Vir tual on Zoom 11:30 AM, July 6, 2021 Meeting to be held in Council Chambers and Virtually on Zoom (access H igh Five Access Media livestream day of the meeting) Notes: Times of items are approximate, subject to change, and c annot be relied upon to determine what time Council will consider an item. Public c omment on any agenda item may be solicited by the Town Council. 1.Trailblaz er Luncheon (11:30am to 1:00pm) 2.E xecutive Session 2.1.Executive Session pursuant to 1) C.R.S. § 24-6-402(4)(a)(e) conc erning the purc hase, acquisition, lease, transfer, or sale of any real, personal, or other property interest; and to determine positions, develop a negotiating strategy and instruct negotiators regarding: a) Residences at Main Vail Development Agreement between the Town of Vail and Triumph Development and b) a potential real property acquisitions by the Town 90 min. Presenter(s): Matt Mire, Town Attorney 3.Regular Meeting will Reconvene at 2:30pm 4.P resentation / Discussion 4.1.2021 Semi-Annual Update on Housing 60 min. Presenter(s): Steve Lindstrom, Housing Chairman, George Ruther, Housing D irec tor and Lynne C ampbell, Housing Coordinator Action Requested of Counc il: For information only - no ac tion is requested Bac kground: The Vail Housing 2027 Strategic Plan was adopted by the Vail Town Council in September of 2017. To ensure progress towards the adopted housing goal a performance measured was put in place obligating the Vail Loc al Housing A uthority and the Town's Housing D epartment to provide an update to the Vail Town Council twice annually. The purpose of this presentation is to honor that obligation and demonstrate progress towards the goal. 4.2.Update on Voter Opinion Survey Regarding Housing and Year-Round Marketing I nitiatives 30 min. Presenter(s): Patty Mc Kenny, Assistant Town Manager and D avid Flaherty, Magellan Strategies Action Requested of Counc il: Review and provide direc tion on funding options to test in upcoming voter opinion survey Bac kground: The Town of Vail has engaged Magellan Strategies and Summit I nfo Services to assist in facilitating community outreac h meetings to gather feedbac k and opinions about the town’s housing and marketing July 6, 2021 - Page 1 of 210 efforts. The findings, whic h were presented to Town Council on J une 1, are being used to develop a voter opinion survey to test reaction to various funding sc enarios to help determine whether to include related taxing questions as part of the Vail Munic ipal Election in November which will be coordinated with Eagle County. 4.3.Edwards Northstar Center P UD Amendment 15 min. Presenter(s): Craig Cohn, C hief Real Estate Development Officer, and Chris Lindley, Chief Population Health Offic er and Exec utive Director of Eagle Valley Behavioral Health Action Requested of Counc il: Town of Vail support of proposed Edwards Northstar Center P UD Amendment to Eagle County Board of County Commissioners Bac kground: Vail Health is proposing a comprehensive community health campus on the Northstar C enter property it owns in Edwards, Colo. Serving those needing pediatric, adolescent and adult physical and oral healthcare. A short-term, inpatient behavioral health facility would be a new building as a part of the c ampus, serving fellow c ommunity members needing behavioral health care focused on the most common disorders: anxiety/depression disorders; mood disorders; family therapy; and substance use disorders. 4.4.Retail Space Conversions-Polic y Disc ussion 20 min. Presenter(s): Erik Gates, Planner Action Requested of Counc il: No action is requested of the Vail Town Council for this item. Bac kground: During the J une 15, 2021 Town Council meeting, the C ounc il expressed c oncern over the loss of retail and other commercial space within Vail Village due to the conversion of these spac es to residential uses. The Vail Town Counc il requested that Staff look into the past trends of commerc ial to residential c onversions in the village in order to help fac ilitate a polic y disc ussion. Staff Rec ommendation: Disc ussion only, no ac tion rec ommended. 4.5.Commerc ial Ski Storage P olicy D iscussion 20 min. Presenter(s): J onathan S penc e, Planning Manager Action Requested of Counc il: Listen to presentation and ask questions. Bac kground: The purpose of this work session is to update the Vail Town Council regarding the Town’s polic y conc erning the regulation of commerc ial ski storage, ski valet and ski conc ierge servic es. Staff Rec ommendation: P rovide feedbac k. 4.6.Current C apital Project Update 10 min Presenter(s): Tom Kassmel Town Engineer Greg Hall Director of Public W orks and Transportation Action Requested of Counc il: Provide any feedback or questions for staff. Bac kground: The Town of Vail has multiple large-scale c apital projects that are on-going. Staff is prepared to provide an update on the evolving status of the following projects: · South Frontage Road R oundabout Project · C hildren’s Garden of Learning Relocation Project · D onovan Pavilion · Public W orks Shop P roject Staff Rec ommendation: S taff is available for questions. July 6, 2021 - Page 2 of 210 5.D R B / PEC Update (5 min.) 5.1.D RB / P E C Update Presenter(s): J onathan S penc e, Planning Manager 6.Information U pdate 6.1.VLHA J une 8, 2021 Minutes 6.2.J une Revenue Update 7.Matters from Mayor, Council and Committee Reports (10 min.) 8.Recess 8.1.Rec ess 5:20 pm (estimate) Meeting agendas and materials c an be ac cessed prior to meeting day on the Town of Vail website www.vailgov.com. All town council meetings will be streamed live by High Five Ac cess Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five Ac cess Media website the week following meeting day, www.highfivemedia.org. Please call 970-479-2136 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. July 6, 2021 - Page 3 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : E xecutive S ession pursuant to 1) C.R.S . § 24-6-402(4)(a)(e) concerning the purchase, acquisition, lease, transfer, or sale of any real, personal, or other property interest; and to determine positions, develop a negotiating strategy and instruct negotiators regarding: a) Residences at Main Vail D evelopment A greement between the Town of Vail and Triumph Development and b) a potential real property acquisitions by the Town P RE S E NT E R(S ): Matt Mire, Town A ttorney July 6, 2021 - Page 4 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : 2021 Semi-A nnual Update on Housing P RE S E NT E R(S ): Steve L indstrom, Housing C hairman, George Ruther, Housing D irector and Lynne Campbell, Housing Coordinator AC T IO N RE Q UE S T E D O F C O UNC IL : F or inf ormation only - no action is requested B AC K G RO UND: T he Vail Housing 2027 S trategic Plan was adopted by the Vail Town Council in September of 2017. To ensure progress towards the adopted housing goal a performance measured was put in place obligating the Vail L ocal Housing Authority and the Town's Housing Department to provide an update to the Vail Town C ouncil twice annually. T he purpose of this presentation is to honor that obligation and demonstrate progress towards the goal. AT TAC H ME N TS : Description Memorandum Vail Economic Impact - infographic-08-14-19 183136-Report-08-14-19 Housing 2027 Br ochure Resolution No. 30 S eries of 2018 2018 Housing Policy Statements 07172018 21041-Mtn-Migr ation-R eport_v2-1 Presentation July 6, 2021 - Page 5 of 210 To: Vail Town Council From: Vail Local Housing Authority George Ruther, Housing Director Lynne Campbell, Housing Coordinator Date: July 6, 2021 Subject: Joint Meeting/2021 Semi Annual Housing Update I. PURPOSE The purpose of this agenda item is to present a 2021 YTD Update on Housing from the Vail Local Housing Authority to the Vail Town Council. This update furthers the many goals, initiatives and priorities of the Vail Town Council Action Plan 2018 - 2020 and advances the performance measures prescribed in the Vail Housing 2027 Strategic Plan. II. TOPICS TO BE HIGHLIGHTED: • 2021 Strategic Initiatives and Actions • 2021 Mid-Year Vail InDEED Program Numbers & Statistics • Updated Progress Towards the Housing Goal III. 2021 HOUSING ACCOMPLISHMENTS 1. Completed Actions Identified in the Vail Housing 2027 Strategic Plan: Deed Restriction Acquisition • Evaluate dedicated deed-restriction acquisition revenue sources to ensure adequate funding exists – ongoing • Implementing the Vail InDEED program – 19 total applications processed in 2021 of which 15 were approved for purchase (79%) • Facilitated the acquisition of a total of 10 new deed restrictions in Year 2021 July 6, 2021 - Page 6 of 210 Town of Vail Page 2 Land Use Tools • Create a Housing Overlay District that allows for increased density – pending • Evaluate the effectiveness of the EHU Exchange Program and adjust as needed – Not completed. • Amend the development impact fee in lieu calculation for inclusionary zoning/commercial linkage to accurately represent cost to the Town of Vail and current real market values – underway to be completed third quarter 2021 • Exploring non-financial incentives for residential property owners to convert to, or otherwise maintain long-term rental opportunities in Vail – Not completed • Evaluating change in housing policy to accept out of town deed restrictions as mitigation for commercial linkage requirements – Not completed • Update the Housing Demands Analysis - Funded for completion in 2021 Performance Measurements • Update existing deed-restricted property data base – ongoing • Prepare twice annual reports summarizing progress towards the adopted goal - ongoing • Maintain complete and accurate newly acquired deed-restriction data – ongoing 2. Completed Actions Identified in the Vail Town Council 2018 -2020 Action Plan: Actively pursuing regional collaboration and partnerships toward increasing the supply of housing within Vail and the region in keeping with the 2018 Housing Policy Statements (Alternate Housing Sites Initiative, CDoT Parcel, Eagle-Vail Parcel, Maliot Park, Avon Deed Restriction Purchase Program) – ongoing Convene the Vail Housing Subcommittee (meets monthly) – ongoing IV. 2021 INITIATIVES AND ACTIONS The following actions and initiatives were taken from the Vail Town Council Action Plan 2018 – 2020 and the Vail Housing 2027 Strategic Plan: • Vail InDEED program implementations and acquisitions - $2.5M funded 2021, plus rollover from 2020 • Update existing deed-restricted property data base – $10K funded • Update and amend the fee in lieu calculation to represent cost of construction and adoption of residential linkage – to be complete in third quarter of 2021 • Create a Housing Overlay District that allows for increased density – in-house • Evaluate the effectiveness of the EHU Exchange Program and adjust as needed – in-house • Evaluate potential housing development sites within the Town of Vail and down valley – in-house and $30K funded July 6, 2021 - Page 7 of 210 Town of Vail Page 3 • Leading the seven-step alternative housing sites initiative aimed at achieving multiple Town adopted housing and environmental stewardship goals – five-year plan for action – ongoing • Overseeing the adoption of a final development agreement with Triumph Development for Lot 3, Middle Creek and Timber Ridge Village Apartments - ongoing • Facilitating the entitlement process for residential development on Lot 3, Middle Creek – completed • Engaged in preliminary discussions with regional partners on potential future housing development sites both in town and down valley - ongoing • Launched an internal Town Employee home purchase program including the sale of the first home within the program at B212, Homestake at Vail Condominiums. Since inception four additional homes has been acquired (5137 Black Gore Drive, Altair Vail Inn, Vail Heights and Brooktree C113) - completed • Facilitated the sale of two Chamonix Vail Townhomes at 2387 and 2373 Lower Traverse Way • Implementation and advancement of the 2018 Housing Policy Statements – ongoing • Active participation with the Vail Local Housing Authority in the formulation of the West Vail Master Plan, Housing Element, – ongoing V. 2021 YTD VAIL INDEED BY THE NUMBERS The following numbers summarize the results of the Town of Vail’s investment in the Vail InDEED Program from January 1, 2021 through June 30, 2021 (YTD). Total Number of Applications Received: 14 Total Number of Transactions Closed: 8 Total Number of Homes Deed-Restricted: 8 Total Number of Homes by # of Bedrooms: 3– one’s 5 – two’s 0 – three’s 0 – four’s 8 homes Total Square Feet of GRFA: 6,025 square feet Average Investment per Deed-Restriction: $75,954 Average Investment per Square Foot: $100.85 Total Dollar Amount Funded for Investment in 2021: $607,635 • ($2,500,000 Appropriated) • ($1,882,354 remaining balances of 6/30/2021) • Total Dollar Amount Invested YTD 2021: $607,635 July 6, 2021 - Page 8 of 210 Town of Vail Page 4 • Total Offer Pending: six totaling $635,400 as of 6/30/2021 Estimated Total Number of Vail Residents Provided Housing in 2021: 28 residents Program Numbers Since Vail InDEED Inception Total Number of Transactions Closed: 77 Total Number of Homes Deed-Restricted: 163 Total GRFA Deed-Restricted: 134,331 square feet Total Deed-Restriction Investment: $11,168,369 Average Investment per Square Foot: $83.14 per square foot Average Investment per Deed- Restriction: $68,518 Lowest/Highest Investment per Square Foot: $61/$133 Total Number of Vail Residents Provided Home: 372 Vail residents (288 Vail residents at Timber Ridge) VI. PROGRESS TOWARD THE GOAL The Vail Housing 2027 Strategic Plan adopted a goal of acquiring 1,000 new deed- restrictions by the year 2027. At the time of adoption, 688 deed-restrictions were recorded on properties within the Town of Vail. Since the adoption of the Vail Housing 2027 Strategic Plan, as of December 22, 2020, the Town of Vail, in collaboration with the Vail Local Housing Authority, has increased the total number of recorded deed restrictions by 35.4 % to 932 (+244). At the current rate of acquisition, it is projected the Town will reach the housing goal by the 2026. VII. LOOKING AHEAD TO 2021 2021 is again proving to be a very productive for housing in Vail with significant progress made towards achieving the Town’s housing goal. The stage is set for another productive year for housing in Vail. In addition to the many ongoing efforts currently underway, as discussed in greater detail above, a number of key strategic initiatives are scheduled for completion in 2021. Key strategic initiatives include: • Advance the seven-steps of the alternate housing sites initiative • Participate in a town-wide data collection effort to better analyze housing trends and track the effectiveness of housing policies, programs, and initiatives • Explore possible incentives to encourage residential property owners to participate in long-term rentals • Review the adopted Employee Housing Guidelines for opportunities to address Capital Improvements and Reinvestments July 6, 2021 - Page 9 of 210 Town of Vail Page 5 • Engage investment analysts to determine the feasibility of recognizing deed restrictions as bondable assets for potential bonding purposes • Adopt administrative penalties and fees for demonstrated non-compliance with the terms of the recorded deed restrictions • Install an informational housing wall display outside the Vail Town Council Chamber to communicate annual progress towards the town’s adopted housing goal and track the economic values and community benefits of resident- occupied, deed-restricted homes in Vail. • Advance the construction process for deed-restricted development of the Residences at Main Vail. • Evaluate the merits of rezoning a portion of the West Middle Creek Parcel for future housing development while ensuring a no net loss of housing and open space opportunities • Engage in the potential acquisition of the CDoT Parcel in East Vail for future deed-restricted housing development opportunities • Explore public/private partnerships in the development of deed-restricted housing on privately owned properties within the Town of Vail • Complete updates and amendments to the Town’s adopted land use regulations governing inclusionary zoning, commercial linkage and possibly residential linkage July 6, 2021 - Page 10 of 210 July 6, 2021 - Page 11 of 210 July 6, 2021 - Page 12 of 210 Revised Report Economic Value & Community Benefits of Resident Housing Investment Prepared for: Vail Local Housing Authority Prepared by: Economic & Planning Systems, Inc. EPS #183136 August 14, 2019 July 6, 2021 - Page 13 of 210 Table of Contents Executive Summary ............................................................................................ 1 1. Background ............................................................................................................ 1 Methodology ...................................................................................................... 5 2. Data Sources .......................................................................................................... 5 Assumptions .......................................................................................................... 7 Economic Context ............................................................................................. 10 3. Findings .......................................................................................................... 12 4. Return Metrics ...................................................................................................... 12 Community Benefits ............................................................................................. 14 Economic Value ................................................................................................... 18 Opportunity Costs ................................................................................................ 20 Appendix ......................................................................................................... 22 5. Terminology ......................................................................................................... 22 July 6, 2021 - Page 14 of 210 List of Tables Table 1. Vail InDEED Summary ..................................................................................... 7 Table 2. Population Trends, Town of Vail Capture ........................................................... 10 Table 3. Housing Unit Trends, Town of Vail Capture ....................................................... 10 Table 4. Employment Trends, Town of Vail Capture ........................................................ 11 Table 5. Return on Investment .................................................................................... 12 Table 6. Investment Multiplier ..................................................................................... 13 Table 7. Value of Time ............................................................................................... 14 Table 8. Reduction in Carbon Emissions ........................................................................ 15 Table 9. Environmental Impact ................................................................................... 15 Table 10. Value of Volunteerism .................................................................................... 16 Table 11. Schools Impact ............................................................................................. 16 Table 12. Expansion of Total Spending in Vail Economy .................................................... 18 Table 13. Expansion of Total Spending in Vail Economy .................................................... 19 Table 14. Parking Impact ............................................................................................. 20 Table 15. Worker Turnover Costs .................................................................................. 21 Table 16. Daytime Spending ........................................................................................ 23 Table 17. Resident Housing Household Spending ............................................................. 23 Table 18. Commute Detail ............................................................................................ 24 List of Figures Figure 1. Town of Vail & Eagle Valley Employment Trends ................................................ 11 July 6, 2021 - Page 15 of 210 Economic & Planning Systems 183136-Report-08-14-19 1 Executive Summary 1. Background The Town of Vail has made significant financial investments in resident housing over many decades. Such investments are rooted in an awareness that affordability and availability of housing for residents and the workforce benefit the broader Vail economy, business community, the overall community character, and the quality of the guest experience. One of Vail’s more innovation and effective investment strategies has been deed- restriction acquisitions, in which the Town appropriates funds annually to ensure that homes are available for residents and the workforce. A new deed restriction purchase program, called Vail InDEED, was recently created to ensure Vail meets its 2027 Vail Housing 2027 Strategic Plan goal of acquiring 1,000 additional resident housing unit deed restrictions by the year 2027. In times of competing community investment priorities and alternatives, it is important that the benefits of resident housing investment are quantified and understood by the community and its leadership. For this purpose, the Vail Local Housing Authority (VLHA) contracted with Economic & Planning Systems (EPS) to quantify the economic value and community benefits of resident housing investment on the local economy and community. Each investment in one resident housing unit generates an annual return as well as provides economic benefit. #1 - The direct return back to the Town of Vail from an investment of $65,000 in one unit of housing is $3,239 in the form of local sales tax and revenue for local students. The annual return on investment to the Town is 5 percent of the initial investment. #2 - Nearly $312,500 is provided from one unit in the form of community benefits, economic value, and opportunity costs to the community as a whole. This return to the community is more than four times the initial investment by the Town, resulting in an investment multiplier of 4.81X. July 6, 2021 - Page 16 of 210 Economic Value & Community Benefits of Resident Housing Investment 2 Metrics At the root of the Town’s resident housing investment policies, deed restricted homes ensure that year-round residents can live and work locally, which ripples through the economy and reinforces the stability of other sectors of the economy. It impacts the character of the community through greater potential civic/resident engagement and presence of school-aged children. It also improves the quality of the guest experience. In this analysis, these and other elements are presented collectively and stated in terms of the following broader metrics: The annual economic value of an investment in 100 units of resident housing ($6.5 million) is: • $18.1 million as a result of an increase in filled positions, • $2.6 million in increased local household spending, and • $116,000 in new local sales tax revenue. The annual community benefits of an investment in 100 units of resident housing ($6.5 million) include: • the elimination of over 40,000 commute hours resulting in $825,000 in the value of time savings, • a reduction of 845 metric tons of carbon emissions (MTCO2e), • $207,000 in State of Colorado revenue in the form of back-fill for 26 school- aged children, and • $1.2 million in volunteer labor. July 6, 2021 - Page 17 of 210 Economic & Planning Systems 3 The annual opportunity cost of an investment in 100 units of resident housing ($6.5 million) is: • $11.3 million in avoided construction cost for 113 parking spaces and • $841,000 in saved costs to businesses for worker turnover, training, and lost productivity. July 6, 2021 - Page 18 of 210 THIS PAGE INTENTIONALLY LEFT BLANK July 6, 2021 - Page 19 of 210 Economic & Planning Systems 5 Methodology 2. As noted in the introduction, this approach encompasses three main components of economic value and community benefit: the economic value; the community benefits; and the opportunity costs. This section outlines the data and assumptions for the analysis. Data Sources A variety of primary and secondary data sources were used in the analysis. Research and interviews also supplemented the quantitative and qualitative elements of the analysis. The following sources were essential to the construction of the methodology: • U.S. Census Longitudinal Employee Household Dynamics. Prevalence of in-commuting workforce to Vail. • Colorado Department of Labor & Employment, Quarterly Census of Employment & Wages. Number of jobs by industry for Vail. • Colorado Statewide Nonprofit Industry Survey, 2018. Nonprofit industry jobs in Eagle County’s workforce and the rate of per-capita volunteerism. • U.S. Bureau of Labor Statistics. Value of volunteerism per hour. • Colorado Department of Transportation. Aggregate vehicle miles travelled (VMT) in Eagle County. • U.S. Environmental Protection Agency. Calculations for estimating carbon emissions. • Eagle County Housing Study and Greater Roaring Fork Regional Resident & Employer Survey, 2018. For assumptions regarding rate of carpooling, persons per household, multiple job-holdings. • IMPLAN. Input-output data for Eagle County at the zip code level. July 6, 2021 - Page 20 of 210 Economic Value & Community Benefits of Resident Housing Investment 6 Types of Economic Impacts In terms of quantifiable economic contributions, metrics included in this analysis have been run through IMPLAN input-output modeling software. IMPLAN is structured to account for trade flows and industry profiles within the defined economic unit—in this case, the Town of Vail, as represented by the 81657 zip code. This type of modeling generates a trove of information, which when consolidated with other information, can be used to estimate the “multiplier effect” on an initial investment. Specifically, a multiplier effect is a ratio that characterizes the relationship between the total of successive rounds of spending resulting from an initial investment combined with the initial investment itself. For example, the multiplier in this analysis is calculated as the composite per-unit economic value and community benefit divided by the Town’s per-unit investment. There are also three layers of economic impacts. These layers are defined as they relate to Vail’s investment in resident housing: Economic Impact Terminology Direct Impacts are the dollar amounts of net new local resident spending and the net new economic activity related to greater number of filled positions. These dollar amounts refer to the first round of spending in an economy. Indirect Impacts are the dollar amounts associated with the business-to-business relationships, such as the real estate activity, the purchase of equipment, or the demand for professional services such as legal, financial and administrative services that may be procured in the process of meeting demand for a “direct” industry’s good or service. These are referred to as the second round of spending. Induced Impacts are activities resulting from the expenditures made by households of the direct and indirect industry jobs. They are typically retail and service-sector oriented impacts that are created by what is typically referred to as the third round of spending. July 6, 2021 - Page 21 of 210 Economic & Planning Systems 7 Assumptions There are two main layers of assumptions in this analysis: 1) the overarching investment goal on which the analysis is based; and 2) the underlying assumptions used to quantify relationships between, for example, the number of persons per housing unit or the rate of carpooling among all in-commuting workers. Resident Housing Investment Housing Targets As previously noted, the premise of this analysis is rooted in the Vail Housing 2027 Strategic Plan adopted goal of acquiring 1,000 additional resident housing unit deed restrictions by the year 2027. The goal means that the Town is targeting, on average, the acquisition of 100 deed restrictions units per year. Housing Investment Based on a detailed accounting of the most recent (116) deed restrictions placed on homes in Vail (between January 2017 and May 2019), data which were obtained from the VLHA, the Town invests an average of approximately $65,000 per unit. It is against this core assumption that the metrics of return on investment and the overall investment multiplier are calculated. Table 1. Vail InDEED Summary Vail InDEED Program Units Price per Deed 2019 (YTD May)11 $94,618 2018 40 $57,105 2017 65 $65,000 Total 116 $65,327 Source: Town of Vail; Economic & Planning Systems July 6, 2021 - Page 22 of 210 Economic Value & Community Benefits of Resident Housing Investment 8 Underlying Assumptions The following are additional assumptions that quantify the relationship between housing units and persons, local job-holdings, net new jobs, and carpooling. Jobs per Unit. Primary data collected locally and regionally indicate that there is an average of 2.2 jobs per household, meaning that 220 jobs would be represented by 100 households in 100 housing units. Vail Jobs. As mentioned previously, the Vail InDEED program requires that a property be occupied as a primary residence by individuals who work a minimum of 30 hours per week in Eagle County. Based on an annualized 40-hour work week, this could be approximated as 75 percent of income (and thus, employment) is originated in Eagle County. For purposes of this analysis, it is an aggregated assumption that 75 percent of job-holders in the resident housing units are working in Vail (165 jobs). Net New Jobs to Economy. The analysis also assumes that 75 percent of these Vail jobs held by occupants of resident housing units are net new to the economy (i.e. that they are filling unfilled positions or enabling employers to add new positions). This means that 124 of the 165 jobs are estimated to be new to economy, whereas the remainder of the 165 would have previously commuted in to their jobs in Vail. Carpooling. Primary data collected regionally indicates that an average of 9 percent of the total in-commuting workforce carpool. July 6, 2021 - Page 23 of 210 Economic & Planning Systems 9 Table 3. Housing Unit Trends, Town of Vail Capture Housing Unit Trends 2000 2010 2017 Total Δ % Capture 2000-17 Avon 2,557 3,615 4,052 1,495 17% Eagle 1,116 2,416 2,251 1,135 13% Eagle-Vail [1]1,482 1,482 1,482 0 0% Edwards 3,953 5,260 5,386 1,433 16% Gypsum 1,210 2,205 2,275 1,065 12% Red Cliff 122 141 123 1 0% Minturn 448 528 542 94 1% Vail 5,389 7,230 7,210 1,821 21% Unincorp. Eagle Valley 3,687 5,394 5,492 1,805 20% Eagle Valley[2]16,277 22,877 23,321 8,849 100% [1] Eagle-Vail did not appear on the 2010 decennial census as a CDP. Source: U.S. Census American Community Survey 5-year estimates; Economic & Planning Systems [2] Eagle Valley is defined as Eagle County less the Roaring Fork Valley (census tract 3.01 block groups 1-3 and tract 3.02 block group 2) Table 2. Population Trends, Town of Vail Capture Population Trends 2000 2010 2017 Total Δ % Capture 2000-17 Avon 5,561 6,447 6,503 942 9% Eagle 3,032 6,508 6,711 3,679 36% Eagle-Vail [1]2,887 2,887 2,887 0 0% Edwards 8,257 10,266 9,202 945 9% Gypsum 3,654 6,477 6,926 3,272 32% Red Cliff 289 267 297 8 0% Minturn 1,068 1,027 1,141 73 1% Vail 4,531 5,305 5,425 894 9% Unincorp. Eagle Valley 6,211 5,283 6,678 467 5% Eagle Valley 35,490 44,467 45,770 10,280 100% [1] Eagle-Vail did not appear on the 2010 decennial census as a CDP. Source: U.S. Census American Community Survey 5-year estimates; Economic & Planning Systems [2] Eagle Valley is defined as Eagle County less the Roaring Fork Valley (census tract 3.01 block groups 1-3 and tract 3.02 block group 2) Economic Context 3. This section of the report provides the economic context including population, housing unit, and employment trends for the Town of Vail in relation to Eagle County as a whole. Population Between 2000 and 2017, the Eagle Valley grew by a population of approximately 10,280, which translates to 605 residents per year. Total population reached 45,770 in 2017 (Table 2). In 2017, Vail represented approximately 12 percent of the Valley population, but had captured only 9 percent of the Valley’s population growth since 2000. Housing Units Growth in housing inventory in Vail outpaced population growth considerably (Table 3). By a factor of more than two to one, more than 1,800 housing units were added to the Town’s housing unit inventory, indicating that second homeownership comprised a majority of the ownership of the new inventory. July 6, 2021 - Page 24 of 210 Economic Value & Community Benefits of Resident Housing Investment 10 Employment In 2018, Vail had an estimated 8,400 wage and salary jobs (Table 4), accounting for 25 percent of the Valley’s total employment. Between 2001 and 2018, the Town added close to 1,300 jobs, capturing 30 percent of the Valley’s growth. The highest growth area in the valley took place in Avon/Beaver Creek, which captured 44 percent of the Valley’s new employment, and (as the definition indicates) includes two distinct commercial nodes of activity. As shown in the following graphic (Figure 1), employment levels in the Town of Vail remained fairly steady over the past two decades. Although employment contracted during the Great Recession (2007-09) for the Eagle Valley, which decreased by 14 percent (a loss of 3,800 jobs), Vail remained relatively steady. Figure 1. Town of Vail & Eagle Valley Employment Trends 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Town of Vail Eagle Valley Table 4. Employment Trends, Town of Vail Capture Employment Trends 2001 2010 2018 Total Δ % Capture 2001-18 Avon/Beaver Creek 7,571 7,589 9,457 1,886 44% Eagle 3,424 3,732 4,602 1,178 27% Eagle-Vail 50 81 110 60 1% Edwards 3,255 3,155 3,510 255 6% Gypsum 1,540 1,488 2,477 936 22% Minturn 520 406 485 -35 -1% Red Cliff 50 81 110 60 1% Vail 7,129 7,256 8,416 1,288 30% Eagle Valley 23,538 23,790 29,167 4,316 100% Source: QCEW; Economic & Planning Systems July 6, 2021 - Page 25 of 210 Economic & Planning Systems 11 Findings 4. There are two primary measurements of economic value and community benefits estimated in this analysis: 1) return on investment; and 2) investment multiplier. Return Metrics The initial investment of $65,000 per unit of resident housing yields magnitudes of more economic value and community benefit than alternatives such as persistent business cost of worker turnover and structured parking. Return on Investment (ROI) Although many of the broader metrics of benefit can be considered “returns on investment,” an ROI measured from the perspective of the investment of ‘public dollars in’ and ‘public dollars out’ captures the two most salient fiscal impacts. The annual returns on the initial investment are comprised of sales tax revenues flowing back to Vail annually and the State of Colorado’s per-unit student back-fill for the school-aged children living in resident housing is approximately $2,000 per year (see the following technical discussion for details on this calculation). This means that, calculated as a standard investment divided by its returns, the Town’s (public) return on investment is 5.0 percent. This aligns on the higher end with typical yields on governmental investment. Table 5. Return on Investment Return on Investment per-Unit Per-Unit Investment ROI Returns Annual Resident Household Spending Sales Taxes $1,165 Annual State per-Pupil Apportionment $2,074 Subtotal Returns $3,239 Investment ROI Return $3,239 Initial Investment $65,000 ROI 5.0% Source: Economic & Planning Systems July 6, 2021 - Page 26 of 210 Economic Value & Community Benefits of Resident Housing Investment 12 Investment Multiplier This metric accounts for the economic activity captured by direct, indirect, and induced spending. Examples of components within this metric include: a) the broader economic metrics such as the economic value (which includes taxable spending and the fiscal benefit) to Vail; b) community benefits; and c) the opportunity costs such as investing in parking annually to accommodate a similar level of employment growth as well as the ongoing costs to the business community of worker turnover and lost productivity. Taking into account each of these components, the net multiplier of the Town’s investment at $65,000 per unit is nearly five (5) times at 4.81X. In benefit-cost analysis (BCA), public entities are typically trying to achieve a multiplier of three (3) to five (5) times the initial investment. Table 6. Investment Multiplier Return on Investment per-Unit Per-Unit Investment Multiplier Economic Metrics Annual Expansion of Economy $181,122 Annual Net New Resident Household Taxable Spending $21,174 Annual Sales Tax Revenue Generation $1,165 Subtotal Economic Metrics (Net) [1]$181,122 Community Benefits Annual Household Value of Reduced Commute Time $8,249 Annual Per-Pupil State Backfill $2,074 Subtotal Community Metrics $10,323 Opportunity Cost Annual Cost of Worker Turnover -$8,410 Cost of Structured Parking -$112,613 Subtotal Opportunity Cost Metrics -$121,022 Investment Multiplier Composite Return $312,467 Initial Investment $65,000 Multiplier 4.81x Source: Economic & Planning Systems Y \Sh d\P j \DEN\183136 V il E i I f Aff d bl H i \M d l \[183136 C lid d E i I [Note 1]: The net new resident household taxable spending and associated sales tax revenue generation are displayed for informational purposes; they are, however, theoretically incorporated in the total annual expansion of the economy. July 6, 2021 - Page 27 of 210 Economic & Planning Systems 13 Table 7. Value of Time Value of Time Saved not Commuting Factor Value Total Jobs in Resident Housing 2.2 220 Vail Jobs in Resident Housing 75%165 Estimated Local Job-Cars 9%150 Commute Minutes per Year 2,426,101 Commute Hours per Year 40,435 Value of Time for Intercity Travel (2018)$20.40 Value of Time Saved not Commuting $824,874 Per-Unit $8,249 Source: LEHD on the Map; U.S. Department of Transportation; Economic & Planning Systems Community Benefits For each unit of resident housing, an estimated 400 hours of time and 950 gallons of gasoline are saved from shorter commutes every year—equating to greater business productivity and an opportunity for residents to give back to their community. Reduced Commute Times More than 40,000 annual commuting hours are avoided by an investment in 100 resident housing units. This equates to approximately $825,000 in value of time ($20.40 per hour of intercity travel). It should be noted that this benefit is capitalized within the expanded economy calculations shown earlier and not additive to the investment multiplier estimate. July 6, 2021 - Page 28 of 210 Economic Value & Community Benefits of Resident Housing Investment 14 Table 8. Reduction in Carbon Emissions Metric Tons of Carbon Monoxide Equivalency (MTCO2 e) All In- Commuters Resident Housing In- Commuters Average Distance Travelled 63.3 miles 29.6 miles # Commuters 3,276 150 Aggregate Vehicle Miles Travelled (VMT)414,586 8,882 Agg. VMT / Year 103,646,600 2,220,594 Aggregate MTCO2e 39,447 845 as % of All In-Commuters 2.1% Source: LEHD on the Map; Economic & Planning Systems Reduced Carbon Emissions The analysis of environmental impact assumes that fewer workers need to commute in to their jobs, decreasing distance traveled and reducing carbon emissions. It further assumes that a greater number of workers will utilize Vail’s free public transit. An analysis of the in-commuter distribution shows that the average one-way distance traveled to Vail is approximately 63 miles (Table 8). It is generally assumed that in-commuters living in closer proximity to Vail will account for larger shares of new occupants of resident housing. As such, it was assumed that the average distance traveled by new occupants of resident housing would have traveled 30 miles. Over the course of a year, this reduction in commute time totals more than 2.2 million miles and represents more than 2 percent of all vehicle miles traveled by in-commuters. As a result, overall carbon emissions are reduced in the Vail Valley by 845 metric tons (2 percent of total estimated Vail in-commuter carbon emissions). It means that in-commuters save more than 95,000 gallons of gasoline per year. This annual savings means that enough energy is saved to charge more than 107 million iPhones, and is equivalent to the air-scrubbing benefits of nearly 14,000 tree seedlings grown for more than 10 years. Table 9. Environmental Impact The Environment Value Equivalencies of Carbon Emissions Emissions Reduction (MTCO2e) from Shorter Commutes 845 Gallons of Gasoline Consumed (equivalent)95,083 Number of Smartphones Charged (equivalent)107,747,909 Tree Seedlings Grown for 10 Years (offset)13,972 Source: U.S. Environmental Protection Agency; Economic & Planning Systems Y \Sh d\P j \DEN\183136 V il E i I f Aff d bl H i \M d l \[183136 C lid d E i I N N July 6, 2021 - Page 29 of 210 Economic & Planning Systems 15 Table 10. Value of Volunteerism Value of Volunteerism Factor Value Total Resident Housing Units 100 Jobs per Unit 2.2 Total Jobs in Resident Housing 220 Estimated Volunteer Hours per Year 201 [1]44,118 Value of Volunteer Time (in CO)$28.02 Estimated Value of Volunteerism in Vail $1,236,200 Per-Unit $12,362 Source: Independent Sector; 2018 Colorado Nonprofit Survey; Economic & Planning Systems [1] Average annual hours of volunteering per year among nonprofits in a group of northwestern Colorado counties. Table 11. Schools Impact Student Generation Total Town of Vail - Students to Housing Units [1]0.26 Resident Housing Investment 100 Students Generated 26 Per Pupil Revenue (Eagle County Schools)$7,945 Eagle County School Revenue $207,449 Per-Unit $2,074 Source: Economic & Planning Systems [1] U.S. Census American Community Survey 5-Year Estimates Volunteerism In a typical community, a portion of residents volunteer their time to local nonprofits, including the health care industry, arts and entertainment, or other community-oriented and civic services. Using primary data from a statewide study of the nonprofit industry conducted in 2018, it is estimated that volunteerism among the population in resident housing could be as high as 200 hours per year. This would contribute more than $1.2 million in labor value to the nonprofit community in Vail (at $28.02 per hour of volunteer time). Schools An estimated 26 school- aged children are generated by the investment in 100 housing units, for which it is anticipated that the State of Colorado back-fills at a per-pupil rate of $7,945 for Eagle County. This would contribute more than $207,000 in revenues to Eagle County Schools annually. July 6, 2021 - Page 30 of 210 Economic Value & Community Benefits of Resident Housing Investment 16 Quality of Guest Experience There is direct linkage between the quality of the guest experience and the supply of local employees. As part of this study, a range of employers were interviewed across a variety of sectors. Those with a high level of interaction with guests, such as food and beverage or services establishments, noted that they are concerned about their ability to maintain a high quality level of service given limited staffing resources. In the case of one restaurant, it chose to close down seating sections to concentrate the available servers. From its perspective, the loss of revenue is a reasonable tradeoff, given the otherwise slow pace of operations. Other business owners commented that certain high-demand weeks, where the community is operating at both peak capacity and peak price point, the service can be the slowest. As Vail’s customer base evaluates its options, it may consider other destinations that can provide the service expected with Vail’s price point. The ability to deliver a high quality guest experience is directly correlated to Vail’s competitive position, not only among ski town destinations but also warm weather destinations. Vail’s future economic vitality depends on the ability of businesses to fill positions. There is concern among some business owners about a decline in quality service in the recent past. Unfilled positions and the related service quality decline in Vail may continue without investment in solutions to attract and retain talent. It was also noted that guests are likely to feel more connected to Vail if they interact with employees who live locally, over an extended period of time, who are invested in the community. This type of employee conveys a commitment that resonates with guests and reinforces the premium brand Vail has built over the decades. July 6, 2021 - Page 31 of 210 Economic & Planning Systems 17 Economic Value Expansion of the Economy due to Filled Positions The availability of additional homes for residents and the workforce translates to a greater jobs market and fewer unfilled positions. It is estimated that approximately 123 full- and part-time positions would be filled as a result of Vail’s resident housing investment (100 units), thereby expanding Vail’s economy by an estimated $18.1 million annually (1.2 percent increase). Table 12. Expansion of Total Spending in Vail Economy Return on Investment Local Business Revenue Direct Indirect Induced Total 11 Ag, Forestry, Fish & Hunting $76,853 $698 $267 $77,818 21 Mining $0 $7,244 $210 $7,454 22 Utilities $0 $5 $7 $12 23 Construction $2,838,283 $81,277 $14,527 $2,934,087 31-33 Manufacturing $0 $4,607 $1,237 $5,844 42 Wholesale Trade $610,911 $20,786 $7,855 $639,552 44-45 Retail trade $906,678 $248,706 $259,371 $1,414,755 48-49 Transportation & Warehousing $0 $79,051 $28,983 $108,034 51 Information $0 $39,827 $22,752 $62,579 52 Finance & insurance $459,252 $438,401 $204,832 $1,102,485 53 Real estate & rental $741,771 $520,976 $397,111 $1,659,858 54 Professional- scientific & tech svcs $458,698 $283,170 $46,160 $788,028 55 Management of companies $0 $156,752 $17,180 $173,932 56 Administrative & waste services $240,281 $87,143 $19,199 $346,623 61 Educational svcs $237,132 $6,627 $42,498 $286,257 62 Health & social services $365,213 $3,600 $361,779 $730,592 71 Arts- entertainment & recreation $890,357 $63,417 $60,260 $1,014,034 72 Accommodation & food services $2,904,377 $65,913 $172,932 $3,143,222 81 Other services $2,763,965 $87,711 $102,288 $2,953,964 92 Government $625,894 $17,191 $19,979 $663,064 93 Non NAICs $0 $0 $0 $0 Annual Expansion of Economy $14,119,665 $2,213,102 $1,779,427 $18,112,194 Per-Unit $141,197 $22,131 $17,794 $181,122 Source: Economic & Planning Systems Ripple Effects (Total Output Expansion) July 6, 2021 - Page 32 of 210 Economic Value & Community Benefits of Resident Housing Investment 18 Resident Household Spending Local resident households spend more of their income on retail goods and services in Vail than the daily spending patterns of in-commuters. It is estimated that Vail’s resident housing investment yields a net new local resident household spending of approximately $2.6 million per year. Town of Vail Fiscal Benefits Out of the net new local resident household spending it is estimated that $2.1 million is taxable spending, which generates more than $116,000 of sales tax revenues for Vail per year. Table 13. Expansion of Total Spending in Vail Economy Return on Investment Total Taxable Ann. Tax Rev Net New Local Spending 5.5% 11 Ag, Forestry, Fish & Hunting $98 21 Mining $145 22 Utilities $2 23 Construction $12,064 31-33 Manufacturing $610 42 Wholesale Trade $3,296 44-45 Retail trade $1,703,757 $1,703,757 $93,707 48-49 Transportation & Warehousing $29,821 51 Information $10,066 52 Finance & insurance $71,120 53 Real estate & rental $179,977 54 Professional- scientific & tech svcs $56,138 55 Management of companies $39,085 56 Administrative & waste services $14,980 61 Educational svcs $8,384 62 Health & social services $57,040 71 Arts- entertainment & recreation $12,994 72 Accommodation & food services $413,628 $413,628 $22,750 81 Other services $30,088 92 Government $6,318 93 Non NAICs $0 Annual Net New Spending $2,649,611 $2,117,385 $116,456 Per-Unit $26,496 $21,174 $1,165 Source: Economic & Planning Systems July 6, 2021 - Page 33 of 210 Economic & Planning Systems 19 Opportunity Costs In this analysis, two primary metrics are considered opportunity costs: 1) the Town’s alternative of investing in structured parking for in-commuters; and 2) business costs associated with worker turnover, training, and lost productivity. It is acknowledged that another alternative Town investment to structured parking could be enhanced transit services and the capital and operational costs associated with it. For the purposes of simplifying the analysis, structured parking was evaluated as the core alternative. Every year that Vail does not invest in resident housing and seeks to accommodate or incent economic growth means that either: a) Vail must build parking to accommodate the growing number of in-commuters and guests; or b) Vail’s business community must endure perpetual business costs associated with worker turnover, training, and lost productivity. In the overall analysis, opportunity costs are capitalized into estimates of return (i.e. the investment multiplier calculation) since they represent avoided costs to the economy. Parking The first of the opportunity costs relates to the costs of accommodating an expanding in- commuting workforce. This cost is based on the recent construction of structured parking in Vail at approximately $100,000 per space, but does not include the cost of land. This opportunity cost is further augmented by the fact that this would be an annual cost to Vail if it were to parallel to the goal of investing in 100 units of resident housing per year. As shown in Table 14 above, the cost of structured parking for an approximately 113 cars per day (accounting for local/non-local jobs, net new jobs to the economy, and carpooling) would be $11.3 million. Table 14. Parking Impact Opportunity Cost Factor Value Parking Investment Resident Housing Investment 100 Jobs Represented by Housing Investment 2.2 220 Vail Jobs 75%165 Net New Jobs to Economy 75%124 New Cars Needing Parking 9%113 TOV Parking Cost per Space $100,000 TOV Parking Investment Opportunity Cost $11,261,250 Per-Unit $112,612.50 Source: Economic & Planning Systems July 6, 2021 - Page 34 of 210 Economic Value & Community Benefits of Resident Housing Investment 20 Table 15. Worker Turnover Costs Opportunity Cost Factor Value Resident Housing Investment 100 Jobs Represented by Housing Investment 2.2 220 Vail Jobs 75%165 Net New Jobs to Economy 75%124 Average annual training cost per jobs that would otherwise "turnover"$6,796 Annual Business Costs of Turnover, Loss of Productivity, and Training $840,959 Per-Unit $8,409.59 Source: QCEW; Center for American Progress; Economic & Planning Systems Local Business Revenue (Cost Associated with Job Turnover, Loss of Productivity, and Training) Worker Turnover If Vail opted to invest in resident housing (not parking), research and analysis indicates that local businesses could reduce their annual costs associated with turnover, job training, and lost productivity by an estimated $840,000 per year. This estimate reflects the weighted average of annual turnover costs for positions in different industries at different annual wage levels. July 6, 2021 - Page 35 of 210 Economic & Planning Systems 21 Appendix 5. Terminology Area Median Income (AMI) is a metric that identifies the point of a target geography’s income distribution at which 50 percent of household earn more and 50 percent earn less. Percentages, such as 60, 80, 100, 120 percent of AMI are typically used to isolate levels of affordability within the distribution of households by income. The source of these data points is the Department of Housing and Urban Development, which defines local AMI annually. Community Benefit broadly refers to the other quantitative and qualitative benefits, such as: 1) reduction in worker commute time; 2) reduction in carbon emissions resulting from shorter commutes; 3) presence of school aged children; 4) greater community and civic involvement; and 5) enhanced quality of guest experience. Deed Restriction refers to a covenant in which it is stipulated that a property must be occupied as a primary residence by individuals who work a minimum of 30 hours per week in Eagle County. Gross Regional Product (GRP) is a measure of regional economic activity that includes employee compensation, business/corporate profits, and local tax revenue generation. Investment Multiplier is a measure, expressed as a ratio of broader economic returns (as measured by three components in this particular study) to an initial investment. The three components include: 1) the impact on the broader economy; 2) community benefits such as reduction in commute times and carbon emissions, increased volunteerism and presence of school-aged children; and c) the opportunity costs such as Vail alternatively investing in structured parking or enhanced transit service. Opportunity Cost is the highest price or rate of return an alternative course of action, i.e. an investment, would yield. In this analysis, opportunity costs are characterized as: 1) the cost to provide structured parking, which could also be an alternative to increased transit service investment; and 2) the annual cost of worker turnover to the business community. Output is a measure of total economic activity, also called “total spending”, that characterizes the sum of successive rounds of industry, business-to-business, and household spending. As an example, output in the residential construction industry would be equal to the purchase price of a housing unit. Quarterly Census of Employment and Wages (QCEW) is the Colorado Department of Labor & Employment’s (CDLE) record of employment and wages for all of the state’s employers. Records are reported at the individual establishment (i.e. address) level. Individual employer records are protected by confidentiality agreement. Resident Housing refers to a deed-restricted for-sale or rental housing unit (new construction, rehabilitation, acquisition, or existing). Data to estimate the average per-unit investment were obtained through the VLHA. Return on Investment (ROI) is an amount, typically expressed as a percentage, earned on an initial investment. The metric is calculated by dividing the initial investment (e.g. in resident housing) by the earnings before interest, debt, and taxes. July 6, 2021 - Page 36 of 210 Economic Value & Community Benefits of Resident Housing Investment 22 Table 16. Daytime Spending Return on Investment Input Value Resident Housing Investment 100 Jobs Represented by Housing Investment 2.2 220 Vail Jobs 75%165 Net New Jobs to Economy 75%124 Number of Previously In-Commuting Job-Holders (Diff.)41 Total Daily Spending by In-Commuting Job- Holders (ICSC)$20 Annual Spending by In-Commuting Job-Holders $206,250 Source: ICSC; Economic & Planning Systems Resident Household Spending (Calculation Part 1) Table 17. Resident Housing Household Spending Return on Investment Value Resident Household Spending (Calculation Part 2) Resident Housing Investment 100 Resident Households 100 Household Median Income (approximately 80% AMI)$64,000 Income Spent on Retail (NAICS 44/45)35% Gross Income Spent on Retail $22,400 Aggregate Income $2,240,000 Food Services $417,325 Retail $1,822,675 Source: ICSC; Economic & Planning Systems July 6, 2021 - Page 37 of 210 Economic & Planning Systems 23 Table 18. Commute Detail All Colorado In-Commuters to the Town of Vail, 2015 Distance (Miles)Commuters Edwards CDP, CO 14.1 miles 572 Denver city, CO 97.1 miles 295 Avon town, CO 10.0 miles 292 Eagle town, CO 30.3 miles 222 Gypsum town, CO 37.2 miles 198 Minturn town, CO 7.3 miles 125 Leadville city, CO 37.5 miles 97 Leadville North CDP, CO 37.5 miles 84 Aurora city, CO 111.0 miles 74 Colorado Springs city, CO 140.0 miles 68 Boulder city, CO 108.0 miles 67 Lakewood city, CO 92.5 miles 52 Fort Collins city, CO 157.0 miles 45 Glenwood Springs city, CO 60.9 miles 39 Breckenridge town, CO 36.0 miles 37 Highlands Ranch CDP, CO 107.0 miles 37 Centennial city, CO 108.0 miles 32 Red Cliff town, CO 16.0 miles 32 Arvada city, CO 95.0 miles 29 Frisco town, CO 26.5 miles 26 Basalt town, CO 84.0 miles 24 Aspen city, CO 102.0 miles 23 Broomfield city, CO 107.0 miles 23 Carbondale town, CO 73.9 miles 22 Longmont city, CO 130.0 miles 22 Silverthorne town, CO 30.2 miles 21 Westminster city, CO 99.8 miles 21 El Jebel CDP, CO 79.7 miles 20 Grand Junction city, CO 147.0 miles 19 Loveland city, CO 144.0 miles 19 Thornton city, CO 104.0 miles 19 New Castle town, CO 73.1 miles 18 Rifle city, CO 87.5 miles 17 Castle Rock town, CO 123.0 miles 15 Englewood city, CO 101.0 miles 15 Dotsero CDP, CO 42.5 miles 14 Ken Caryl CDP, CO 97.0 miles 14 Parker town, CO 118.0 miles 14 Steamboat Springs city, CO 93.1 miles 14 Craig city, CO 118.0 miles 13 Dakota Ridge CDP, CO 93.8 miles 12 Twin Lakes CDP, CO 57.7 miles 12 Silt town, CO 80.0 miles 11 Columbine CDP, CO 99.4 miles 10 Commerce City city, CO 103.0 miles 10 Dillon town, CO 31.8 miles 10 Littleton city, CO 103.0 miles 10 Other 126.8 miles 411 Average/Total 63.3 miles 3,276 Source: LEHD on the Map; Economic & Planning Systems July 6, 2021 - Page 38 of 210 VAIL HOUSING 2027Adopted September 6, 2016 Resolution No. 29, Series of 2016 “A Strategic Plan for Maintaining and Sustaining Community through the Creation and Support of Resident Housing in Vail” 75 S. Frontage Rd. | Vail, CO 81657 970.479.2100 | vailgov.com/housing2027 July 6, 2021 - Page 39 of 210 VAIL TOWN COUNCIL • Dave Chapin, Mayor • Jenn Bruno, Mayor Pro-Tem • Dick Cleveland • Kevin Foley • Kim Langmaid • Jen Mason • Greg Moffet VAIL LOCAL HOUSING AUTHORITY • Steve Lindstrom, Chair • Scott Ashburn • Mary McDougall • Molly Murphy • James Wilkens ADMINISTRATION DEPARTMENT • Stan Zemler, Town Manager • Kathleen Halloran, Director of Finance • Matt Mire, Town Attorney COMMUNITY DEVELOPMENT DEPARTMENT • George Ruther, Director of Community Development • Kristen Bertuglia, Environmental Manager • Alan Nazzaro, Housing Manager VAIL ECONOMIC ADVISORY COUNCIL • Jean Alexander • Christian Avignon • Bob Boselli • Nick Brinkman • Dick Cleveland • Mark Gordon • Michael Imhof • Matt Ivy • Rayla Kundolf • Michael Kurz • Rob LeVine • Robin Litt • Greg Moffet • Matt Morgan • Laurie Mullen • Kim Newbury • Brian Nolan • Mike Ortiz • Tara Picklo • Chris Romer • Mia Vlaar • Alison Wadey CONTRIBUTORS TABLE OF CONTENTS 01 EXECUTIVE SUMMARY 2 VISION 3 MISSION 3 POLICY STATEMENT 4 PURPOSE OF THE PLAN 4 GOAL 5 MEANS 7 METHODS 12 ACTIONS FOR 14 IMPLEMENTATION July 6, 2021 - Page 40 of 210 EXECUTIVE SUMMARY Ensuring the availability of homes for Vail residents has been a long standing challenge in the community. To date, adopted housing policies, programs and practices have not yielded desired results. To realize different results the community must change its approach to housing policies, programs and practices. Presently, the Town’s housing policies, programs and practices lack an attainable goal, are without adequate financial means, are reactive in implementation and contain a decision making structure that does not result in increased housing opportunities. Vail Housing 2027 sets in motion a strategic plan that proactively addresses the housing needs of the community. It is actionable in its implementation and changes the decision-making approach towards maintaining and sustaining homes for residents within the community. Vail Housing 2027 takes a three-part approach to improving the availability of housing in Vail and increasing the number of deed restricted homes for residents of the community: Similar to a three-legged stool, the plan falls flat and can not be successful without all three parts in place. When achieved, this goal, along with the more than 698 existing deed restricted homes, ensures homes for more than 3,736 Vail residents. A goal can not be accomplished without the means for doing so. In this instance means is an adequate and ongoing source of funding. Funding is necessary to acquire deed restrictions. The Plan recommends the use of existing Housing Program funds to launch the deed restriction program in the initial years and recommends annual appropriations from the Town’s Capital Projects Funds in future years. Additional funding sources should be pursued simultaneously. Finally, the Plan recommends a new method for achieving the goal. Like the goal, the method is clear and concise… Implement a new decision-making structure which is singular in focus, proactive, empowering and results- oriented, and is nimble enough to be effective at achieving the goal. 1 2 3GOAL MEANS METHOD The Town of Vail will acquire 1,000 additional resident housing unit deed restrictions by the year 2027 The single goal of the Plan is clear and concise… vailgov.com/housing2027 02July 6, 2021 - Page 41 of 210 We envision Vail as a diverse, resilient, inclusive, vibrant and sustainable mountain resort community where year-round residents are afforded the opportunity to live and thrive. We take a holistic approach to maintaining community, with continuous improvement to our social, environmental, and economic well being. We create housing solutions by recognizing and capitalizing on our unique position as North America’s premier international mountain resort community in order to provide the highest quality of service to our guests, attract citizens of excellence and foster their ability to live, work, and play in Vail throughout their lives. Our strategic solutions and actions result in the retention of existing homes, creation of new and diverse housing infrastructure, and collaboration with community partners. For Vail, no problem is insurmountable. With a consistent, community-driven purpose and an entrepreneurial spirit, Vail will lead the industry in innovative housing solutions for the 21st century. The Town is well positioned financially to undertake this significant challenge. We create, provide, and retain high quality, affordable, and diverse housing opportunities for Vail residents to support a sustainable year round economy and build a vibrant, inclusive and resilient community. We do this through acquiring deed restrictions on homes so that our residents have a place to live in Vail. OUR MISSION Maintaining and Sustaining Community OUR HOUSING VISION An Eye on the Future 03 July 6, 2021 - Page 42 of 210 We acknowledge that the acquisition of deed restrictions on homes for Vail residents is critical to maintaining community. Therefore, we ensure an adequate supply and availability of homes for residents and recognize housing as infrastructure in the Town of Vail; a community support system not unlike roads, bridges, water and sewer systems, fire, police, and other services of the municipal government. Vail Housing 2027 is an action-oriented, results-based strategic planning document that is to be used as a decision- making guide for taking critical next steps towards addressing the resident housing needs in Vail. The Plan takes a proactive approach to addressing the housing need. To that end, the Plan identifies a vision for housing for year round residents of the community, a mission for maintaining and sustaining community and a single policy statement that acknowledges homes for residents as critical infrastructure, thereby reinforcing the importance of housing to the long term success of Vail. Further, the Plan articulates a 10-year goal to acquire deed restrictions on homes within the community. The Plan presents a road map for acquiring deed restrictions for resident housing through the year 2020. Given the dynamic nature of the factors affecting the Town’s ability to achieve the ten year goal, such as global markets, interest rates, changes in regional housing supply, financial lending practices, etc. the Actions for Implementation focus on the first three years following the Plan adoption. The Plan should be revisited at least every three years to evaluate progress and to make adjustments, as needed. The Plan is a living document that is to be used proactively, adjusted as needed and reported upon twice annually to the Vail Town Council. It recommends a number of actions that must be implemented to ensure the realization of the Plan goal. PURPOSE of the PLAN A Commitment to the People who Live and Work in Vail POLICY STATEMENT Resident Housing as Infrastructure vailgov.com/housing2027 04 Business costs avoided $12.6 million per year New retail spending $6.0 million in annual retail sales ($240,000 in sales tax at 4.0%) Parking expansion $9.0 million CATEGORY VALUE VALUED VAIL EMPLOYEE HOUSING Source: BBC Research and Consulting July 6, 2021 - Page 43 of 210 GOAL The Town of Vail will acquire 1,000 additional resident housing unit deed restrictions by the year 2027 05 1 These new deed restrictions will be acquired for both existing homes as well as for homes that are newly constructed by both the Town of Vail and private sector developers. By virtue of the occupancy requirements of the deed restrictions, the Town of Vail does not need to own resident homes to forward its mission of maintaining and sustaining community. Title to real estate can change ownership often. Once recorded, a deed restriction transfers with the title and survives changes in ownership over time, thus assuring long term resident housing. July 6, 2021 - Page 44 of 210 vailgov.com/housing2027 06 5,305 People 7,209 Homes 8000 7000 6000 5000 4000 3000 2000 1000 4,758 Unoccupied Homes1,753 Occupied Homes (2 - 3 people per home) Owner Occupied Renter Occupied 698 Deed Restricted Homes $$$$$$$ 5000 4000 3000 2000 1000 2000 1000 6000 5000 4000 3000 2000 1000 Since 2010: - nearly 90% of homes for sale in Vail were sold to Unoccupied Home Owners - approximately 10% were sold to Occupied Home Owner Source: Eagle County Assessor’s Office 2016 OCCUPANCY COMPARISON July 6, 2021 - Page 45 of 210 MEANS Figure 1: Town of Vail Community Survey 2016 To effectively achieve the goal of acquiring 1,000 additional resident housing unit deed restrictions by the year 2027, adequate financial resources are needed. For the purpose of this plan, the resources required include regular and ongoing annual appropriations. The funds appropriated will be used to purchase and acquire deed restrictions for resident housing. Deed restrictions will be acquired from a wide range of sources. Likely sources include existing homeowners, potential home buyers, business owner’s, large and small employers, real estate developers, existing and potential investment property owners, etc. In recognizing that resident housing is valued as critical infrastructure within the community it is imperative that it must be funded adequately. Given that the availability of resident housing is an important issue for the community, then funding from the Town’s annual budget should reflect housing as a priority. 07 38% 0 10 20 30 40 Focus on housing for middle income and service workers households in vital support roles. Economic vitality (investing in facilities, services and events to keep Vail competitive) Budget and capital management (keeping Vail fiscally healthy) Actions to protect and enhance Gore Creek Environmental sustainability (waste and energy conservation programs, environmental education, etc) Parking opportunities for residents Guest relations and customer service Parking opportunities for visitors/guests Transportation needs (bus service - local and regional) 36% 30% 20% 20% 17% 13% 13% 11% TOP TWO COMMUNITY PRIORITIES 2 July 6, 2021 - Page 46 of 210 vailgov.com/housing2027 Therefore, annual appropriations in the form of both dedicated housing funds and capital projects funds require allocation. And, as this is a community-wide issue, the community as a whole should financially support housing solutions. Figure 2: Town of Vail Community Survey 2016 08 47% 21% 63% 36% 25% 26% 48% 26% 59% 58% 25% 41% 19% 27% 33% 23% 18% 15% 14% 25% 22% 18% 19% 18% 8% 20% 14% 19% 18% 8% 13% 13% 19% 9% 17% 13% 13% 13% 14% 8% 11% 14% 6% 5% 17% 0 10 20 30 40 50 60 70 Focus on housing for middle income and service workers households in vital support roles. Economic vitality (investing in facilities, services and events to keep Vail competitive) Budget and capital management (keeping Vail fiscally healthy) Actions to protect and enhance Gore Creek Environmental sustainability (waste and energy conservation programs, environmental education, etc) Parking opportunities for residents Guest relations and customer service Parking opportunities for visitors/guests Transportation needs (bus service - local and regional) FT RES PT RES EMP TOV MAIL NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ Full-time resident Part-time resident Employed in TOV - live elsewhere Get mail in TOV - live/work elsewhere Non-resident business owner 47%21%63%36%25%26%48%26%59%58%25%41%19%27%33%23% 18% 15% 14% 25% 22% 18% 19% 18% 8% 20% 14% 19% 18% 8% 13% 13% 19% 9% 17% 13% 13% 13% 14% 8% 11% 14% 6% 5% 17% 0 10 20 30 40 50 60 70Focus on housing for middle income and service workers households in vital support roles.Economic vitality (investing in facilities, services and events to keep Vail competitive)Budget and capital management (keeping Vail fiscally healthy) Actions to protect and enhance Gore Creek Environmental sustainability (waste and energy conservation programs, environmental education, etc) Parking opportunities for residents Guest relations and customer service Parking opportunities for visitors/guests Transportation needs (bus service - local and regional) FT RES PT RES EMP TOV MAIL NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ FT RES PT RES EMP TOV MAIL ONLY NON RES BIZ Full-time resident Part-time resident Employed in TOV - live elsewhere Get mail in TOV - live/work elsewhere Non-resident business owner TOP PRIORITIES BY RESIDENT TYPE July 6, 2021 - Page 47 of 210 A dedicated funding source is important to the long term success of meeting the established housing goal by year 2027. A dedicated funding source such as sales tax or property tax increase live on over time as political sentiment changes, and supports the issuance of long-term bonds to move the revenue forward. A tax-based funding source for housing should be supplemented with the collection of fee in lieu funds received. However, in order to initiate immediate action towards the realization of the goal of the Plan, it is necessary in the near term that additional funding comes from reallocation of the Town’s General and Capital Projects Funds. It is difficult at this time to determine precisely the annual budgeting requirements of the Plan, especially as related to potential capital expenditures for deed restriction acquisition. The Town’s Housing Program Funds, however, Figure 3: Town of Vail 2015 Year in Review. Municipal Services accounted for $39.3 million, or 73% of 2015 expenditures. currently maintain a fund balance of nearly $3.2M. In an effort to create, grow and maintain a healthy fund balance and establish a pattern of annual appropriation towards housing programs, the Town should appropriate a minimum of $500,000 into the 2017 Housing Program Funds within the Capital Projects Funds and make regular and ongoing annual appropriations for the purpose of acquiring new resident housing deed restrictions. It is recommended that a minimum of $5M be appropriated in future budget years 2018, 2019, and 2020. Allocations beyond 2020 should be evaluated based upon results achieved in each of the first three years of the Plan implementation. As each year’s results are reviewed, adjustments in allocation may be necessary to remain on target of achieving the Plan goal. Circumstances unknown at this time may require the Town to accelerate its funding obligations in future years to remain on target for realizing the Ten Year Goal. 09 WHERE THE MONEY WENT Town Officials & Administration 10% Transportation & Parking 11% Public Safety 22% Facilities & Fleet Maintenance 8% Contributions, Marketing & Special Events 6% Parks, AIPP & Library 4% Health & Employee Housing 1% Capital Improvements 27% Public Works & Streets 7%Community Development 4% July 6, 2021 - Page 48 of 210 vailgov.com/housing2027 10July 6, 2021 - Page 49 of 210 12 METHODS New Structure A new decision-making structure is needed to get better results. The new structure must include a new decision-making body that is: • singular in mission and focus • empowered and results-oriented • time sensitive and responsive in its actions • adaptable to an ever dynamic real estate market • consistent and predictable • timely within the Town’s development review process To efficiently achieve the goal of acquiring 1,000 additional resident housing unit deed restrictions by the year 2027 a new structure for decision- making is needed. The current decision making structure contains multiple layers of bureaucracy, is costly and time consuming, inefficient, indecisive, reactive in approach and does not achieve the Town’s desired results of addressing the resident housing needs of the community. The new structure requires built-in mechanisms of accountability for decision making and twice annual reporting requirements. It must be built on a foundation grounded by predetermined criteria for sound decision making and evaluation when deciding on the acquisition of deed restrictions. It requires participation from experts in the fields of real estate finance and development, residential property lending, real property acquisition, affordable housing policy and program implementation, public finance and administration, and real property analysis, valuation and appraisal. Each of these characteristics ensure that the new structure is organized and aligned in such a way that the Town achieves its Ten Year Goal for housing. Most importantly, the decision-making structure must ensure that the decision-making body, acting as a special agent of the Town of Vail, has the authority to take action towards achieving the goal and dispense the funds needed to acquire deed restrictions. 3 July 6, 2021 - Page 50 of 210 The five-member Vail Local Housing Authority (VLHA) should be appointed as the new decision-making body authorized as a special agent to act on behalf of the Vail Town Council. There are numerous compelling reasons to appoint the VLHA as the Town’s special agent. Those reasons include: • The VLHA is a statutory authority created under Colorado Revised Statutes (CRS 29-4-204) and granted powers of authority (CRS 29-4-209) which include, in part, > to grant or lend moneys or otherwise provide financing to any person, firm, corporation for any project or any part thereof, > to pledge or otherwise encumber any of its moneys in support o of on connection with a project, and > to purchase, lease, obtain option upon, or acquire any property, real or personal, or any interest therein from any person, firm, corporation, the city, or a government. vailgov.com/housing2027 13 • The VLHA is uniquely positioned to fill this role due to its singular purpose and focus. • The VLHA members are appointed by the Vail Town Council, and therefore, its membership can include experts with the appropriate background and experiences. • The VLHA was created to focus its efforts on maintaining and expanding the supply of resident housing opportunities in the community. • The VLHA members serve five year staggered terms. Figure 4: Decision-Making VAIL LOCAL HOUSING AUTHORITY (implementation) VAIL TOWN COUNCIL (policy) Twice Annual Reporting (feedback) TOWN OF VAIL SUPPORT STAFF $Annual Appropriation A NEW DECISION-MAKING STRUCTURE July 6, 2021 - Page 51 of 210 Deed Restriction Acquisition • Establish deed restriction acquisition criteria • Work with mortgage lenders and title companies to develop mutually acceptable deed restriction language • Collaborate with The Valley Home Store and the Vail Board of Realtors to market and communicate the Town’s interest in acquiring deed restrictions • Evaluate dedicated deed restriction acquisition revenue sources to ensure adequate funding exists FOR IMPLEMENTATION 14 July 6, 2021 - Page 52 of 210 vailgov.com/housing2027 Land Use Tools • Establish a No Net Loss of Deed Restrictions Policy • Create a Housing Overlay District that allows for increased density • Evaluate the effectiveness of the EHU Exchange Program and make adjustments as needed • Update the 2007 Rational Nexus Study to ensure changes in land use are consistent with current employee generation rates • Amend the Fee in Lieu calculation to represent cost of construction instead of affordability gap Performance Measurements • Update existing deed restricted property data base to include additional factors such as cost, location and deed restriction language type • Prepare a twice annual report summarizing progress towards the goal • Maintain newly acquired deed restriction data such as unit type, location, cost, etc. “ The availability of housing for Vail residents is vital to the continued success of the Vail community. The Vail Town Council and the Vail Local Housing Authority are to be commended for taking a bold step towards addressing the housing needs of the citizens of Vail today, and those in the future.” ~ George Ruther Director of Community Development 15July 6, 2021 - Page 53 of 210 75 S. Frontage Rd. | Vail, CO 81657 970.479.2100 | vailgov.com/housing2027 July 6, 2021 - Page 54 of 210 RESOLUTION NO. 30, SERIES 2018 A RESOLUTION ADOPTING THE 2018 TOWN OF VAIL HOUSING POLICY STATEMENTS, AND SETTING FORTH DETAILS IN REGARD THERETO WHEREAS, the Vail Town Council has adopted the vision “To Be The Premier International Mountain Resort Community”; WHEREAS, through Resolution No. 29, Series 2016, the Town Council adopted Vail Housing 2027, "A Strategic Plan for Maintaining and Sustaining Community through the Creation and Support of Resident Housing in Vail" (the "Plan"); WHEREAS, the single goal of the Plan is for “The Town of Vail to acquire 1,000 additional resident housing deed-restrictions by the year 2027; WHEREAS, according to the 2018 Town of Vail Community Survey results, the availability and affordability of housing is the most critical issue facing the Vail community; and, WHEREAS, through the adoption of housing policy statements, it is the Vail Town Council’s intent to articulate the approaches the Town will take to realize its vision, achieve its housing goal, and address the most critical issue…housing…facing the Vail community. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL: Section 1. The Vail Town Council hereby adopts the following housing policy statements, hereafter referred to as the “2018 Town of Vail Housing Policy Statements”: #1 Housing IS Infrastructure - Deed-restricted homes are critical infrastructure in Vail. #2 Housing Partners – We use public/private partnerships and actively pursue local and regional solutions to increase the supply of deed- restricted homes. #3 Private Sector Importance – We foster a proactive and solutions- oriented environment that promotes private sector investment to create deed-restricted homes. #4 Leverage Financial Strength – We will use our financial strength and acumen to acquire deed-restrictions. 1 July 6, 2021 - Page 55 of 210 #5 Breakdown Barriers – We align our land use regulations, building and energy conservation codes to achieve our vision and housing goal, and development applications are thoroughly, timely and efficiently reviewed….getting to “yes” is our shared objective. #6 Funding Creates Deed-Restrictions – We pursue a predictable, consistent and reliable source of funding to obtain deed-restrictions and maintain the Town’s housing programs. #7 People Promote Community – We ensure opportunity and access to the Town’s housing programs and initiatives through a clear, equitable, and easy to administer process for housing selection. #8 No Net Loss - No net loss of resident-occupied, deed-restrictions. #9 Keep Up With Demand - New development, both residential and commercial, is obligated to mitigate its incremental impact on the demand for resident-occupied, deed-restricted homes. Payment in lieu, while needed, is not the preferred method of mitigation. #10 Funding is Policy – The Vail Town Council will fund housing opportunities and solutions. INTRODUCED, READ, APPROVED AND ADOPTED this 17th day of July, 2018. _____________________________ Dave Chapin, Mayor ATTEST: ____________________________ Patty McKenny, Town Clerk 2 July 6, 2021 - Page 56 of 210 The Mountain Migration Report Are COVID Impacts on Housing & Services Here to Stay?2021 | Eagle, Grand, Pitkin, Routt, San Miguel & Summit Counties July 6, 2021 - Page 57 of 210 The Mountain Migration Report • 2021 School Enrollment | 2July 6, 2021 - Page 58 of 210 TABLE OF CONTENTS 1 INTRODUCTION ..............................................4 Study Purpose ......................................................................5 Geographic Area ..................................................................7 Methodology .........................................................................7 2 SUMMARY OF KEY FINDINGS ....................9 Have part-time residents changed the amount of time they spend in the region? ..................10 Do part-time residents have plans to permanently relocate? .....................................................11 Are residents working remotely, employed locally or retired? ...........................................11 Will the sharp rise in home prices and high demand for housing continue and what does this mean for residents holding local jobs? .................12 Do community service needs differ among existing and new residents and what are their priorities? .............................................................13 3 UNDERSTANDING CHANGES IN HOUSING OCCUPANCY ........................14 Sales and Lodging Taxes ..................................................15 Vacation Rental Occupancy ............................................16 Water Usage ........................................................................18 Change In Resident Occupancy of Homes ................19 Use of Homes .....................................................................21 4 RESIDENT EMPLOYMENT PATTERNS ........................................................22 Employment Status ..........................................................23 Employment Location ......................................................23 Household Income By Employment Location ...........25 5 HOUSING MARKET IMPACTS ...................26 Ownership Market: ..........................................................29 Rapid Escalation In Sales, Sharp Drop In Availability ....29 Prices at Record Highs ......................................................30 Full-Time Residents Are Losing Ground ......................31 Buyer Preferences and Home Use ................................33 Will the Buyer Frenzy Continue? ....................................33 The Start of a New Reality? .............................................34 Rental Market: ...................................................................35 The Big Picture – From Shut Down to Frenzy .............35 Impacts on Long-Term Rental Inventory – Gains & Losses ...................................................................35 Impacts On Rents – Locals Get Relief But Market Rates Spike ............................................................36 Rental Availability – What Availability? ...........................38 Short-Term & Mid-Term Rentals ....................................39 Renter Profiles – Demographics Changing .................39 6 SERVICES NEEDS & PREFERENCES .......40 Community Services & Amenities ................................41 Business Services ..............................................................42 Home Services ...................................................................44 Other Services ....................................................................45 7 QUALITY OF LIFE ..........................................46 Factors Influencing Community Choice ......................47 Community Impacts In 2020 .........................................48 8 SUPPORT FOR COMMUNITY ORGANIZATIONS..........................................52 9 SCHOOL ENROLLMENT ............................55 Current School Enrollment .............................................56 Future School Enrollment ................................................58 10 NEXT STEPS ....................................................60 Motivated to Take Action Together...............................61 Collaborate On Larger Policy Changes ........................61 Explore Local & Regional Actions ..................................62 APPENDIX ..............................................................66 Demographic Profile of Survey Respondents ...........67 Acknowledgments ............................................................68 July 6, 2021 - Page 59 of 210 The Mountain Migration Report • 2021 1INTRODUCTION July 6, 2021 - Page 60 of 210 The Mountain Migration Report • 2021 Introduction | 5 Study Purpose Since the COVID-19 pandemic escalated in March of 2020, national media reported an outflow of residents flocking from cities to high quality-of-life places such as the mountain resort communities covered in this report. Residents of these communities observed that their communities were busier—and consistently so, breaking the typical patterns of high and low visitation. But was the in-migration real? And what did we know about the people coming to these places who appeared more like residents than visitors? Was it only a COVID driven wave that would recede? How would it impact known community challenges such as workforce retention, affordable housing, rental stock and that mountain community holy grail that is quality-of-life? A desire for a better understanding of the answers to these and many other questions being asked led to this Mountain Migration report. We listened to our membership through 2020, there was a sense among those reflecting already that the COVID Mountain Migration experiment might prove instructive, providing a glimpse ahead for those who drive policy. That idea was the origin of this report. To get it done, Northwest Colorado Council of Governments (NWCCOG) sought a partnership with Colorado Association of Ski Towns (CAST) to scope and fund this report. That partnership led to a grant from the Colorado Department of Local Affairs (DOLA), and funding from a recovery grant from the Economic Development Administration (EDA) to match dues from NWCCOG and CAST membership. NWCCOG is deeply appreciative of these partners, the many contributors listed in the Acknowledgements page and the amazing communities that we are honored to serve. The findings of this report should help local leaders better understand current trends and motivate them to address evolving community needs. While the data was gathered from six Colorado mountain resort counties, the results should provide widespread insights for other high amenity places throughout the Mountain West. In Colorado, most solutions are local, but many of the impacts outlined in this report can only be addressed through regional and state- level cooperation, and in some cases structural changes to policy, practice and law. Many public and private sector professionals have spent their careers on these issues, many of the communities studied have been “doing housing” for decades, and many are innovating in the housing sector right now, though, few are putting all options on the table. There is always that sticky matter of political courage and public resistance to change. We think this Mountain Migration trend reveals a tipping point for these communities that cannot be ignored. We thought such a report without ANY suggestions would be a mistake. To that, NWCCOG and CAST would like to thank Wendy Sullivan and Melanie Rees, the consultants who we sought out for this work. The Possible Solutions/ Next Steps section at the end derived from their years of experience combined with input during this project. Although they tolerated edits and input from us as NWCCOG and CAST Executive Directors, the report is their work, and is intended as a tool for reference. It is not a reflection of the positions of either organization or our membership. That said, we don’t mind going out on a limb here. May this report be a wakeup call for local leaders, a renewed call to action for those already involved in tackling community challenges, and a reference point for those seeking to understand the trends so they can have a positive impact on the places they live. The consequences are real. Will some communities reach a tipping point of unfillable jobs that are necessary to sustain their reputations and quality of life? Will some communities be fully commoditized and lose their soul? The report notes that no place yet has “built their way out” of the issue. Is that possible? Does that mean that a community “couldn’t?” There are many approaches to the issue. We recommend looking at each of them again. July 6, 2021 - Page 61 of 210 The Mountain Migration Report • 2021 We hope this report may provide some cover for bold elected officials partnering with others to propose such structural changes. Policies that made sense need to be reassessed, could include reviewing deed restriction language to address remote work, or recalibrating Area Medium Income limits because even locally employed professionals are being priced out. These are incremental, known things to tweak. Some things that were taboo may need to be put on the table, those could include inventorying all lands owned by public taxing entities for viability for affordable housing – school lands, oversized parking lots, and prized civic properties like adjacent federal lands and, (gasp) open space. There is open talk these days about whether STRs should be taxed as commercial properties? The conversation these days isn’t all about local or state policies. What about federal lending practices that favor single family homes over multi-family developments? This is returning as an equity issue. Some states such as California have streamlined multi-family developments as a by-right development for affordable projects where density is not a public input point. Others states legislatures in the West are discussing abandoning single family zoning altogether. And then there is the question, where is that in the budget? Most solutions like public land banking, purchasing deed restrictions from existing residents cost money and often require additional taxes. For those who wish to open the barn door, break the glass (insert your metaphor here), there are no shortage of ideas being discussed somewhere out there today. The countervailing challenge is this. People really like it up here because it isn’t the city. Periods of intense growth pressure in mountain communities often result in a not-in-my-backyard backlash which creates resistance to the very actions necessary to address the challenges outlined in this report. Such reactions often impact attempts to create affordable housing more than they do higher-end projects. Whether this dynamic can be overcome will require considerable finesse, vision and community buy-in earned by community leaders. We applaud those who endeavor to do so. Introduction | 6 Jon Stavney Executive Director NWCCOG Margaret Bowes Executive Director CAST Margaret Bowes ALPINE AREA AGENCY ON AGING July 6, 2021 - Page 62 of 210 The Mountain Migration Report • 2021 Introduction | 7 Aside from each county or municipality therein being members of NWCCOG and/or CAST, additional criteria were used to focus the study area to ensure that this analysis will have wide applicability to a variety of other amenity-rich communities throughout the west. First, high-profile resort communities are located in each county. These have long attracted investment from second homeowners and strong interest from visitors. On average only about 50% of homes are occupied by full-time residents in the entire study area, with the rest being owned and occupied by part-time residents, investment buyers, and visitors. Second, each county differs in its relative accessibility from population centers, with some being easily accessible from the more urban Colorado Front Range cities and others being relatively isolated. This leads to variability among these counties, reflected in other unique factors such as each county’s demographic, economic, and visitor profiles. Communities not directly included in the study should, therefore, be able to reference a county or combination of counties that best resemble their area to get a picture of the most applicable migration profiles presented in this report. Methodology ONLINE RESIDENT SURVEY The resident survey conducted as part of this study provides the core information presented in this report. The survey was distributed with significant local assistance to reach full-time residents, part-time residents, and new residents. Nearly 5,000 responses were received, about one-fourth of which were from part-time residents, as summarized in the table below. Geographic Area This study includes six counties within the NWCCOG and CAST network: Eagle County, Pitkin County, Summit County, Routt County, Grand County, and San Miguel County. Reaching the desired mix of respondents required a diverse outreach plan. The survey was advertised through local media and newspapers and distributed with the cooperation of local boards of REALTORS®, school districts, water and utility billings, chambers of commerce, and local non-profits, among other avenues, as indicated in the Acknowledgements section. RESIDENCY STATUS COUNTY Eagle Grand Pitkin Routt San Miguel Summit TOTAL Full-time 508 769 254 400 496 1,048 3,475 Part-time 91 446 192 64 62 380 1,235 TOTAL 599 1,215 446 464 558 1,428 4,710 July 6, 2021 - Page 63 of 210 The Mountain Migration Report • 2021 Introduction | 8 Results were weighted to coincide with the proportion of total full- and part-time resident households that each county comprises in the study region. Given that the purpose of the study was to gauge differences in home usage and service needs in the community based on residency status, other weighting was not applied. The demographic profile of respondents is provided in the Appendix. Survey results are primarily reported based on the residency status of respondents, as follows: • PART-TIME RESIDENT: include respondents that reported that they do not live in their respective county on a full-time or primary residence basis. Part-time respondents predominately reside in their respective mountain county for 6-months or less each year (90%). • FULL-TIME RESIDENT: include respondents that reported that they live in their respective county on a full-time or primary residence basis. Full-time respondents predominately reside in their respective mountain county for more than 6-months each year (91%). • NEWCOMERS: include respondents that started residing in the area as a full- or part-time resident within the past two years. Forty-four percent of newcomers did not spend time in their respective mountain county on a regular basis prior to the COVID outbreak in 2020. • LONG-TIMERS: include respondents that have resided in their respective mountain county for ten years or more either full-time, part-time, or both. Significant differences that were observed by county are also noted. PROPERTY MANAGERS, REAL ESTATE AGENTS & HOUSING MARKET DATA Interviews were conducted with nine property managers throughout the six counties. A focus group was conducted with eight real estate agents representing each county within the study area. The purpose was to gather housing market changes (prices, availability and competition), gain insights into changes in unit use, such as from year-round rentals into short-term rentals, and understand new resident motivations, preferences and needs. Housing market analyses from Land Title Guarantee Company, the predominant title company for each county in the study area, provided the housing sales data presented in this report. OTHER LOCAL DATA Discussions with various water and sanitation districts, school districts, chambers of commerce, and tourism boards and districts were conducted to identify various local indicators that communities in the study area were tracking to try to understand changes. This research led to compilation of several indicators presented in this report, including sales and lodging tax collections, vacation rental occupancy through DestiMetrics and Key Data tracking systems, and water usage and wastewater data. It is important to note that the scope of this report did not attempt to capture information about traditional tourism or visitors. Base Survey Data is available only to members for CAST and NWCCOG upon request. Forty-four percent of newcomers did not spend time in their respective mountain county on a regular basis prior to the COVID outbreak in 2020. 44% July 6, 2021 - Page 64 of 210 The Mountain Migration Report • 2021 2SUMMARY OF KEY FINDINGS July 6, 2021 - Page 65 of 210 The Mountain Migration Report • 2021 Summary of Key Findings | 10 Key Findings The short answer is yes. About one-fifth did spend more time in their part-time residence in 2020. Interestingly, however, about an equal number spent less time, effectively balancing out their impacts over the year. This does not mean that the impacts of part-time residents that increased their stay was not felt. Many did so during periods when they have typically been elsewhere and, therefore, did help to boost sales tax collections and contribute to the busier-than-usual feeling in most communities during typically slower times of the year (i.e., mid-week and fall months). There was much speculation before this study that the increased crowds, parking impacts, and other effects of having more people than typical in these communities was due primarily to part-time owners occupying their homes. While part-time residents were a contributor, the greater population surge and the crowds about which so many residents commented were instead caused by a combination of: ¿Newcomers moving in and either buying or renting; ¿Growth in the demand for and use of homes for a month or season; ¿Visitors who stayed in lodging, short-term, and mid-term rentals, or camped with many others in the backcountry; ¿Residents and visitors alike staying for consistent and longer stretches, rather than coming up only on the weekends or during holidays, thereby flattening out the typical peaks and valleys in visitation during the week and certain times of the year; ¿Year-round residents traveling out of the area less frequently during COVID; ¿Day trippers and drive-in traffic seeking relief from COVID isolation; and, also, ¿Part-time residents occupying their homes. This surge illustrated yet another impact of the strong part-time and visitor occupancy of homes in these counties. With currently only 50% of housing units in the study area being occupied by full-time residents, the influx of more owners and visitors staying in part-time homes and short- and mid-term accommodations can, in theory, allow the population in the area to double seemingly overnight; and this does not include visitors that may be in commercial (hotel) lodging units. This, for example, occurred in Telluride last fall when the total population in town was about twice the resident population of 4,145 people. When stays are increased and extended over longer periods of time, as occurred during COVID, the stress on the community and infrastructure is felt by all. Have part-time residents changed the amount of time they spend in the region? With currently only 50% of housing units in the study area being occupied by full-time residents, the influx of more owners and visitors staying in part-time homes and short- and mid-term accommodations can, in theory, allow the population in the area to double seemingly overnight; and this does not include visitors that may be in commercial (hotel) lodging units. July 6, 2021 - Page 66 of 210 The Mountain Migration Report • 2021 Part-time residents expect to increase the time they spend in their homes by an average of 30% (1.2-month increase) in 2022 to 2025 from pre-COVID averages. A small percentage, however, plan to become full-time residents, which are largely offset by plans of full-time residents to leave the area or reduce the time they spend in the county. Newcomers are also mixed, with some stating that they will move out of the county and others hoping to buy a home in the county. About 18% are uncertain. Evaluating the motivations for newcomers and part-time residents to move to or spend more time in the area sheds light on factors that will influence their staying power: ¿Changes in employer remote work policies. Home is now the workplace for most newcomers and part-timers. One-half of newcomers were motivated to spend more time in the area because they could work remotely. About 20% who work remotely are uncertain about their ability to do so in the future, pending remote worker policy changes by their employer. ¿Concerns about COVID and, to a lesser extent, civil unrest. Safety/security was one of the most important considerations among residents when choosing where to live. Newcomers will stay and more people will want to move in should the pandemic continue and possibly worsen. ¿The availability of housing stock to absorb newcomers. The housing shortage is felt by all. Newcomers earn much higher incomes and are in a stronger position to compete for homes than are existing residents who make their living in the community. As raised in more detail below, however, for sale inventory is at historic lows and rental inventory is largely non-existent, meaning that even newcomers cannot acquire housing if it is not available. The housing crisis is at a peak. The location neutral, or remote, worker is a trend that was already occurring, which the pandemic rapidly accelerated. It is also a trend that will continue to make mountain towns popular places to live for location neutral workers. Over half of all newcomers, full-time residents, and part-time residents surveyed include at least one person who works at home. About 60% of newcomers and 70% of part-time residents work for an employer outside of the county, compared to about one-fourth of full-time residents. Do part-time residents have plans to permanently relocate? Are residents working remotely, employed locally or retired? Part-time residents expect to increase the time they spend in their homes by an average of 30% (1.2-month increase) in 2022 to 2025 from pre-COVID averages. Summary of Key Findings | 11July 6, 2021 - Page 67 of 210 The Mountain Migration Report • 2021 Summary of Key Findings | 12 The ability for people working in these mountain towns to live in the same communities as they work took a big hit from the pandemic. Housing availability and affordability, which were by no means new problems, became significantly worse. ¿Home prices reached record highs. ¿Rents increased 20% to 40% in one year. ¿Availability of homes for rent and purchase plummeted to critical levels in many communities. ¿Newcomers with significantly higher incomes than year-round residents more often won the competition for scarce housing units. Some correction is possible for home prices and rents; however, the wide perception among area real estate agents was that the high-demand, short supply housing market is here to stay, at least for a while. Construction activity picked up, but current activity levels cannot produce anywhere near the rate nor volume to meet the demand. The shortage in construction labor and building materials, lack of developable land, topography constraints, and limited infrastructure capacity are just a few of the limiting factors. It is widely recognized that these communities have been unable to build their way out of this problem. This accelerated location-neutral worker trend brings potentially positive changes, but also brings some challenges: ¿Rising interest from location neutral workers to relocate to the mountain communities has the potential to bring more economic diversification. New location-neutral worker residents earn more and can spend more at local businesses. Their incomes are not tied to employment generated in the mountains. If the ability for location neutral workers to work from home changes, instead of leaving the community to again commute to their job, some may instead choose to stay in the community, increasing the entrepreneurial potential in these communities. ¿In addition, with more residents to support local businesses, shifting economic priorities for some communities may be on the horizon. For example, tourism marketing and expenditures focused primarily on the visitor experience may become less of a need, with increased focus on capital projects that support livability and quality-of-life improvements for new residents. Visitors may always anchor the resort economy, but as these communities add year-round residents, tourism may become a less dominant economic driver. ¿On the other hand, finding employees to fill resident and visitor service jobs necessary to maintain a community will likely become even more challenging. Incoming location-neutral workers will not be filling local jobs and will outcompete local workers for housing. This hurts the ability for local businesses to find, keep, and attract employees, lowering the level and quality of services they can provide to residents and visitors alike. This has been a struggle for resort communities for years; and is primed to get worse, at least in the near term. Businesses, existing residents, and communities may face a tough transition in the years ahead. Will the sharp rise in home prices and high demand for housing continue & what does this mean for residents holding local jobs? About 60% of newcomers and 70% of part-time residents work for an employer outside of the county, compared to about one-fourth of full-time residents. July 6, 2021 - Page 68 of 210 The Mountain Migration Report • 2021 Home prices in mountain towns tend to be more volatile than in diversified urban areas, as witnessed during the Great Recession of 2008, when downward adjustments were significant. Given how far prices have moved beyond levels affordable for locally employed residents, however, property values would need to plummet further than they did during the Great Recession to bring affordability back for local workers in these communities. It seems unlikely that prices will correct to the extent that year-round residents will be able to purchase market homes or compete with part-time renters and newcomers for rental housing. In most communities in the six-county region this is already the case, where the only housing that the majority of local employees can afford are homes that are deed restricted for local workforce occupancy and/or price limited. There are fewer and fewer full-time residents employed locally that will be able to afford free market construction if trends continue. The negative impacts on housing affordability and availability were recognized by newcomers, long-time residents, and part-time residents to almost the same extent as full-time residents. With the increase in the severity of the problem and the widespread acknowledgment of it, now is the time to mobilize governments, communities, and regions to strengthen, broaden, and reinvent workforce housing polices, programs, and efforts. The rising focus of residential units being used as employment centers by location-neutral workers presents new challenges for the traditional housing programs implemented in many of these communities. Innovative strategies to increase the supply of deed restricted homes that are limited to occupancy by persons who are employed in local businesses allow local workers to compete against the strong outside demand for housing in these amenity-rich communities. Practices protecting those deed restrictions are clearly needed to fill local jobs, support the economy, and sustain communities. The “Next Steps” section of this report presents several concepts for consideration. One purpose of this study was to evaluate if significant shifts in current community service priorities would occur as new migrants came to the area and some part-time residents increased their time in their homes. Results indicate that there is not much difference in community and business service priorities and needs among newcomers, full-time, and part-time residents. Full-time residents may use s ervices more frequently, but all residents report a similar need for each service. Interestingly, part-time residents generally feel that existing services are higher quality than do full-time residents. The results indicate that communities do not need to make significant changes to the way they deliver basic services to their residents, but they will need more of the same if increased home usage continues and newcomers keep coming. Providing higher levels of services to meet the larger population should be the focus rather than necessarily providing different or new services. Do community service needs differ among existing and new residents and what are their priorities? Summary of Key Findings | 13July 6, 2021 - Page 69 of 210 The Mountain Migration Report • 2021 3UNDERSTANDING CHANGES IN HOUSING OCCUPANCY July 6, 2021 - Page 70 of 210 The Mountain Migration Report • 2021 Understanding Changes in Housing Occupancy | 15 Sales & Lodging Taxes Despite COVID-19 restrictions that were tough on businesses, the counties and communities in the six-county study area experienced less negative effect on sales taxes than anticipated, with some areas showing sales tax gains from the prior year. Overall, for the region sales1 taxes declined by about 5% in 2020 compared to 2019. As illustrated in the following chart, sales tax collection changes varied throughout the year: • The largest negative impact occurred in March, when COVID-19 public health orders closed or decreased capacity for many businesses, including in particular restaurants, hotels/short-term rentals, and retailers. This impact was felt throughout the spring. • Some recovery and positive gains occurred throughout the summer as public health were orders lifted, lodging occupancy permissions were increased, and businesses reopened. • Collections again dropped into the late fall when COVID cases started rising and tighter restrictions were again put into place in many counties. The number of homes occupied by full-time and part-time residents was higher in all counties in the study area in June through December 2020 compared to the prior year. The scale of this increase and whether increased home occupancy by part-time residents in particular are here to stay are larger questions that this section seeks to address. This section first summarizes several indicators that communities in the study region have been tracking to varying degrees to better understand changes experienced during the COVID pandemic in 2020. The indicators presented herein – sales and lodging tax collections, vacation rental occupancy, and water usage and wastewater data - all point to increased occupancy of homes by residents in the summer and fall of 2020, after COVID-19 public health restrictions were put into place at state, county, and local levels in the region. This is followed by information from the resident survey to understand more specifically how much more time residents spent in their homes, future resident plans, and motivations behind occupancy changes. 1 Sales taxes by month were consolidated for the region and included collections for five of the six counties, plus many of the primary resort communities in each county for 2019 and 2020 tax years. Routt County and Steamboat Springs; Summit County and Breckenridge, Frisco and Silverthorne; Eagle County and Vail; Pitkin County and Aspen and Snowmass Village; Winter Park in Grand County; and San Miguel County and Telluride. July 6, 2021 - Page 71 of 210 The Mountain Migration Report • 2021 Vacation Rental Occupancy Information was available for five of the six counties in the study area that track lodging occupancy stays for a portion of the professionally managed commercial and residential vacation properties.2 Overall, the below information substantiates the perceptions by residents that more part-time residents were occupying their homes in the summer and fall of 2020 compared to 2019. The hardest hit tax collection sectors included businesses with a higher reliance on tourism and visitor traffic: • Lodging tax collections were down about 14% in total for the region and as much as 40% in some areas. Residential vacation rental collections, where tracked separately from commercial lodging (e.g., hotels, etc.), and were much less impacted, with some communities reporting increased 2020 collections (e.g., Frisco, Breckenridge, Vail); and • Bar/restaurant collections falling 20% or more were not uncommon. Sectors that tend to be more impacted by resident spending, including essential businesses which stayed open throughout the pandemic, were more likely to show collection gains. This includes, for example, grocery and home improvement/construction. If the migration persists these trends are likely to continue. Online tax collections were able to begin in November 2018 in Colorado, although many communities did not receive distributions until well into 2019 after 2020 budget revenue projections were established. This unpredictable windfall from the Wayfair Supreme Court decision was timely during the COVID year. The increases will be predicted and absorbed in upcoming years. The ability to collect online sales taxes helped make up for declines from local business collections. As online sales continue to weaken main street businesses it will be interesting how it plays out over time for Colorado communities which are largely dependent on sales tax to provide many basic services. Finally, liquor and marijuana sales were generally up in every county and community, attributed to a mix of resident and visitor spending. This could be simply a COVID isolation bump. PERCENTAGE CHANGE IN SALES & LODGING TAX COLLECTIONSSix County Region • 2019-2020 The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 13 • Some recovery and positive gains occurred throughout the summer as public health were orders lifted, lodging occupancy permissions were increased, and businesses reopened. • Collections again dropped into the late fall when COVID cases started rising and tighter restrictions were again put into place in many counties. Percentage Change in Sales and Lodging Tax Collections: Six County Region: 2019 to 2020 # 1 Source: Town and County Finance Departments, Sales Tax Reports The hardest hit tax collection sectors included businesses with a higher reliance on tourism and visitor traffic: 5%8% -40%-40% -16%-13% -4% 5% 18%23% 7% -9%-5% 6%13% -53% -77%-70% -42% -3% 17% -3% 56% -2% -18%-14% -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec TOTAL% Change in Tax Collections: 2019 to 2020Sales tax collections (total)Lodging tax collections Source: Town and County Finance Departments, Sales Tax Reports Understanding Changes in Housing Occupancy | 16July 6, 2021 - Page 72 of 210 The Mountain Migration Report • 2021 Understanding Changes in Housing Occupancy | 17 Paid stays by visitors can be differentiated from unpaid stays, which typically means owners and/or friends/family of owners are occupying the unit.3 In general, increases in unpaid stays decreases the availability of units for visitors and impacts lodging tax revenue. Longer-term part-time resident use of units also impacts infrastructure, traffic, parking, services, and many other factors, as discussed later in this report. Eagle, Routt, Pitkin, and Summit counties collect occupancy data for approximately 67% (10,225 units) of the professionally managed inventory in the four-county region utilizing DestiMetrics. For purposes of this study, Inntopia compiled this information and evaluated the percentage of total stays that were due to unpaid (or owner) stays in 2019 compared to 2020. As shown below: • Unpaid stays as a percentage of total lodging stays showed a dramatic increase beginning in April 2020, with increased owner stays lasting through December 2020. The large increase in April was due a combined reduction in total stays (due to lodging occupancy restrictions beginning in March) and a rise in owners occupying their units. • The percentage of unpaid stays decreased in mid-summer as lodging occupancy restrictions were reduced and more paying visitors returned, but still remained 20 percent higher through the summer than in 2019. • Unpaid stays were over 30 percent higher in September through November compared to 2019, contributing to the more crowded feel of the mountain communities during this period when visitors typically decline. Each of the four counties follow a similar pattern, just with different degrees of change throughout the year. Generally, the trend is most pronounced in communities that are more isolated from a combination of urban center or major interstate access (e.g., Pitkin County) and less pronounced in more readily accessible communities (e.g., Eagle and Summit Counties). PERCENTAGE OF TOTAL STAYS THAT ARE UNPAID STAYS IN PROFESSIONALLY MANAGED VACATION UNITS* Eagle, Pitkin, Routt & Summit Counties • 2019-2020 Source: Town and County Finance Departments, Sales Tax Reports 2 Confidentiality concerns limit the level of detail that can be presented from this information, but permitted data and summaries are presented in this section. 3 While unpaid stays typically means that the unit is occupied by the owner and/or friends/family, the unit may also be vacant or occupied by an unreported renter. This measure is an indicator of increased owner usage rather than a definitive count. The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 16 Percentage of Total Stays that are Unpaid Stays in Professionally Managed Vacation Units,* 2019-2020: Eagle, Pitkin, Routt and Summit Counties #2 *excludes commercial properties (e.g. hotels) Source: Inntopia Business Intelligence The Telluride area in San Miguel County followed a similar pattern as well. About 63% (over 1,000 units) of professionally managed lodging in the Telluride area in San Miguel County is monitored through the Key Data system by the Telluride Tourism Board. Unpaid (i.e., owner) stays of non-commercial units increased from 2019 levels beginning in June through December 2020. The percentage of units occupied by owners increased by about 40% in September and November and near 50% in October and the typical peaks and valleys associated with visitor fluctuations throughout the week flattened out. -2%-1%-2%218%186%104%23%21%38%47%37%27%-50% 0% 50% 100% 150% 200% 250% 0% 10% 20% 30% 40% 50% 60% 70% January February March April May June July August September October November December 2019-2020 % Change% of Unpaid StaysUnpaid stays 2019 Unpaid stays 2020 YOY % Variance The Telluride area in San Miguel County followed a similar pattern as well. About 63% (over 1,000 units) of professionally managed lodging in the Telluride area in San Miguel County is monitored through the Key Data system by the Telluride Tourism Board. Unpaid (i.e., owner) stays of non-commercial units increased from 2019 levels beginning in June through December 2020. The percentage of units occupied by owners increased by about 40% in September and November and near 50% in October and the typical peaks and valleys associated with visitor fluctuations throughout the week flattened out. July 6, 2021 - Page 73 of 210 The Mountain Migration Report • 2021 Water Usage Many communities do not track water usage as a data point for community policy and planning; one exception is Telluride. The Telluride Tourism Board monitors wastewater data and associated daily population estimates that are provided by the Telluride Regional Wastewater Treatment Plant. While estimating population from wastewater information is not a simple task, with many complicated variables to consider, with diligent wastewater tracking and proper adjustments, population estimates can be made. Based on tracking wastewater volumes, the average daily population in the Telluride treatment area in October and November 2020 was 25% to 31% higher than in 2019. It is estimated that 1,600 units, in addition to full-time resident homes, were occupied during October. Assuming an average 2.6-people per unit, the population in the area in October 2020 was about twice the resident population of 4,145 people. Key Data visitation information, presented above, indicates that a significant proportion of the population rise was due to more owners occupying their homes. Water usage can also be used as an indicator of residential occupancy and commercial use; however, it has limited utility to provide a clear narrative during high-irrigation periods. Comparing water usage in 2019 and 2020 for communities within Pitkin, Summit, Eagle and Routt counties during the low irrigation months of October, November, and December exhibits a similar trend as that noted for Telluride, above. Residential water usage was up in most communities during this period and down among commercial users. November had the largest increase in residential water consumption, which is typically a low visitation month. December had the greatest drop in commercial water use. PERCENTAGE CHANGE IN MONTHLY POPULATIONTelluride Wastewater Treatment Area • 2019-2020 PERCENTAGE CHANGE IN WATER USE BY MONTH Residential & Commercial Compared • 2019-2020 Source: Telluride Tourism Board, Telluride Regional Wastewater Treatment Plant Source: City of Aspen, Town of Breckenridge, Eagle River Water and Sanitation District, City of Steamboat Springs The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 17 Water Usage The Telluride Tourism Board monitors wastewater data and associated daily population estimates that are provided by the Telluride Regional Wastewater Treatment Plant. While estimating population from wastewater information is not a simple task, with many complicated variables to consider, with diligent wastewater tracking and proper adjustments, population estimates can be made. Based on tracking wastewater volumes, the average daily population in the Telluride treatment area in October and November 2020 was 25% to 31% higher than in 2019. It is estimated that 1,600 units, in addition to full-time resident homes, were occupied during October. Assuming an average 2.6-people per unit, the population in the area in October 2020 was about twice the resident population of 4,145 people. Key Data visitation information, presented above, indicates that a significant proportion of the population rise was due to more owners occupying their homes. Percentage Change in Monthly Population: Telluride Wastewater Treatment Area, 2019-2020 #3 Source: Telluride Tourism Board, Telluride Regional Wastewater Treatment Plant -3%4% -40% -13% 18% 11% -18%-21% 4% 25% 31% 2% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% January February March April May June July August September October November December % change: 2019-2020The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 19 Percentage Change in Water Use by Month: 2019 to 2020 Residential and Commercial Compared #4 Source: City of Aspen, Town of Breckenridge, Eagle River Water and Sanitation District, City of Steamboat Springs Change in Resident Occupancy of Homes The indicators presented above do not indicate whether increased usage of homes by part-time residents will continue. To understand future resident plans, survey respondents were asked a series of questions regarding the estimated amount of time that they spent in their homes in each respective county in 2019 pre-COVID and 2020, expected use this year (2021) and anticipated use in the next few years (2022-2025). This was followed by questions on home use pattern changes that occurred in 2020 and how they expect their residency in the county to change in coming years. All residents on average have increased time spent in their respective county and expect to continue a higher rate of usage of their homes. Existing and future home usage varied, however, depending upon the residency status of respondents. This includes new residents who moved to a county in the study area within the past year, existing part-time residents, and existing full-time residents. As shown below: -30% -20% -10% 0% 10% 20% 30% 40%Oct Nov Dec Oct Nov Dec Residential Commercial % change: 2019 -2020Aspen Breckenridge Eagle River Steamboat Understanding Changes in Housing Occupancy | 18July 6, 2021 - Page 74 of 210 The Mountain Migration Report • 2021 Understanding Changes in Housing Occupancy | 19 Source: 2021 Mountain Migration Survey *New residents are differentiated from “newcomers” in that these are residents that moved within the past year. Newcomers moved within the past two years (see definition on page 3). New residents may have spent time in the area on a regular basis as a visitor, but not a part-time or full-time resident, which is why “pre-COVID” is not 0. ESTIMATED LENGTH OF STAY NEW RESIDENTS* (<1 year) FULL-TIME RESIDENTS PART-TIME RESIDENTS Pre-COVID 2.5 11.0 3.6 Year 2020 4.9 11.4 3.7 Current year (2021)8.8 11.4 4.1 Future years (2022-2025)8.9 11.2 4.8 Net change: pre-COVID to 2022-25 6.4 0.2 1.2 ESTIMATED LENGTH OF STAY IN COUNTY HOME (MONTHS) Change in Resident Occupancy of Homes The indicators presented above do not indicate whether increased usage of homes by part-time residents will continue. To understand future resident plans, survey respondents were asked a series of questions regarding the estimated amount of time that they spent in their homes in each respective county in 2019 pre-COVID and 2020, expected use this year (2021) and anticipated use in the next few years (2022-2025). This was followed by questions on home use pattern changes that occurred in 2020 and how they expect their residency in the county to change in coming years. All residents on average have increased time spent in their respective county and expect to continue a higher rate of usage of their homes. Existing and future home usage varied, however, depending upon the residency status of respondents. This includes new residents who moved to a county in the study area within the past year, existing part- time residents, and existing full-time residents. As shown below: • New residents expect to reside in their respective county for close to 9-months per year on average this year and in future years, increasing their time spent in the county pre-COVID by over 6-months. About 44% of new residents did not spend any time in their respective county on a regular basis pre-COVID. • Even though 17% of part-time residents increased their time in their county home in 2020 for an average of about 3-months, about 20% decreased their time in county since 2019. As a result, part-time residents showed little change in their average length of stay in total last year (0.1 months). Looking ahead, however, part-time residents expect to increase their time in their county home by about 30% (1.2-months) by 2022-2025. • Full-time residents showed little change in home occupancy and expect to continue to reside in county for over 11-months per year on average. Part-time residents in five of the six counties also expect to increase their stay by about 30% by 2022-2025 from pre-COVID stays, which is consistent with the region overall. Part-time resident respondents in Routt County, however, indicated potentially doubling their average time in the county to about 6-months on average by 2022-2025. July 6, 2021 - Page 75 of 210 The Mountain Migration Report • 2021 The motivation for residents to alter their time in the study area also varied – COVID was not the sole reason. Residents were asked whether certain COVID-related or civil unrest factors affected resident travel and occupancy in 2020. As shown below: • The ability to work remotely was a larger factor for newcomers (49%) and part-time residents (36%) to spend more time in the county than COVID contagion risks and concerns about civil unrest combined. • Residents that increased their time in the study area in 2020 were more likely to cite each of the below factors as influencing their decision. The ability to work remotely (50%) and COVID contagion risks (44%) were most common. Civil unrest influenced a lower 15% of respondents. Finally, respondents were asked whether they expect to change their residency status (e.g., from part-time to full-time, full-time to part-time, leave the area, etc.) within the next three years. As shown below: • Newcomers are more likely than other residents to make changes in the coming years, but the changes are relatively mixed. About 8% indicated they will leave the county and 16% desire to purchase a home in the county. About 18% are unsure. • Most part-time residents will remain part-time; however, about 9% desire to become full-time residents. Another 12% are unsure. • Of full-time residents, about 6% plan to leave the county and 8% desire to buy a home. Results are fairly consistent across all counties in the study area, with part-time residents being more likely to indicate they will become full-time residents in Grand and Routt counties. Responses from full-time residents that rent shows the relative instability and uncertainty of renters in the study area. Renters are much more likely to leave, desire to buy a home, or be uncertain of future changes. HOW DO YOU EXPECT YOUR RESIDENCY IN THE COUNTY TO CHANGE OVER THE NEXT 3 YEARS? TRAVEL & RESIDENCY CHANGES RELATED TO COVID Source: 2021 Mountain Migration Survey Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 20 How do you expect your residency in the county to change over the next 3 years? Source: 2021 Mountain Migration Survey Responses from full-time residents that rent shows the relative instability and uncertainty of renters in the study area. Renters are much more likely to leave, desire to buy a home, or be uncertain of future changes. How do you expect your residency in the county to change over the next 3 years? Full-time renters I will move out of the county 17% Buy a home (or another home) in this county 32% No change 35% Unsure/still deciding 28% Source: 2021 Mountain Migration Survey The primary motivating factors for the changes or indecision noted by residents included: • Housing reasons (30%). This encompassed both sides, from those looking to cash in, move in, or purchase homes to those being unable to afford to rent or purchase, having a lack of housing opportunities or inventory, and housing uncertainty and instability for those working locally; 12% 2% 9% 0% 2% 1% 4% 70% 14% 1% 0% 1% 3% 6% 8% 73% 18% 2% 4% 1% 1% 8% 16% 56% 0%10%20%30%40%50%60%70%80% Unsure/still deciding Other I will become a full-time resident I will become a part-time resident Sell my home I will move out of the county Buy a home (or another home) in this county No change Newcomers Full Time Part Time The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 19 Travel and Residency Changes Related to COVID Source: 2021 Mountain Migration Survey Finally, respondents were asked whether they expect to change their residency status (e.g., from part-time to full-time, full-time to part-time, leave the area, etc.) within the next three years. As shown below: • Newcomers are more likely than other residents to make changes in the coming years, but the changes are relatively mixed. About 8% indicated they will leave the county and 16% desire to purchase a home in the county. About 18% are unsure. • Most part-time residents will remain part-time; however, about 9% desire to become full-time residents. Another 12% are unsure. • Of full-time residents, about 6% plan to leave the county and 8% desire to buy a home. Results are fairly consistent across all counties in the study area, with part-time residents being more likely to indicate they will become full-time residents in Grand and Routt counties. 0%10%20%30%40%50%60%70%80%90%100% Spend less time traveling elsewhere because of COVID Move away from or spend less time in an urban area due to civil unrest Move to or spend more time in the county because of COVID contagion risks Move to or spend more time in the county because you could work remotely Part Time Full Time Newcomers No Change Buy a home (or another home) in this county I will move out of the county Sell my home I will become a part-time resident I will become a full-time resident Other Unsure/still deciding Move to or spend more time in the county because you could work remotely Move to or spend more time in the county because pf COVIDd contagion risks Move away from or spend less time in an urban area due to civil unrest Spend less time traveling elsewhere because of COVID Source: 2021 Mountain Migration Survey FULL-TIME RENTERS I will move out of the county 17% Buy a home (or another home) in this county 32% No change 35% Unsure/still deciding 28% HOW DO YOU EXPECT YOUR RESIDENCY IN THE COUNTY TO CHANGE OVER THE NEXT 3 YEARS? Understanding Changes in Housing Occupancy | 20July 6, 2021 - Page 76 of 210 The Mountain Migration Report • 2021 Use of Homes The majority of homeowners use the property themselves or for friends and family at least part, if not all, of the time. When homes are not in use: • Part-time residents (24%) and newcomers (13%) are much more likely than full-time residents (3%) to lease their homes short-term (less than one month at a time). • A small percentage of part-time owners rent their home mid-term for more than 30 days (4%), and a handful lease homes long-term for 1- to 5-months. • Usage was similar across all counties in the study area, with the exception that part-time residents are more likely to lease homes short-term in Pitkin County (32%) and less likely in Eagle County (11%). Mid-term was more prominent in San Miguel County (11%). Understanding Changes in Housing Occupancy | 21 HOW WILL THE USE OF YOUR HOME CHANGE OVER THE NEXT 3 YEARS? PART-TIME FULL-TIME NEWCOMERS Rent my home out short-term 8%1%4% Rent my home out long-term 2%1%2% Source: 2021 Mountain Migration Survey The primary motivating factors for the changes or indecision noted by residents included: • Housing reasons (30%). This encompassed both sides, from those looking to cash in, move in, or purchase homes to those being unable to afford to rent or purchase, having a lack of housing opportunities or inventory, and housing uncertainty and instability for those working locally; • Job, retirement, age/health or other family changes (30%); • Undesirable changes or conditions in the county, mostly related to growth over the years (15%); and • Enjoyment of the area and a desire to stay (15%). Lesser factors included financial conditions and cost of living, uncertainty about COVID and related concerns, and the climate/cold winters. Over the next three years, another 8% of part-time owners and 4% of newcomers anticipate also renting their homes short term. WHEN YOU AND YOUR FRIENDS/FAMILY ARE NOT OCCUPYING YOUR HOME, HOW IS IT TYPICALLY USED? Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 25 #7 Source: 2021 Mountain Migration Survey Over the next three years, another 8% of part-time owners and 4% of newcomers anticipate also renting their homes short term. How will the use of your home change over the next 3 years? Part-time Full-time Newcomers Rent my home out short-term 8% 1% 4% Rent my home out long-term 2% 1% 2% Source: 2021 Mountain Migration Survey 0% 2% 4% 24% 72% 14% 1% 1% 3% 83% 10% 1% 2% 13% 79% 0%10%20%30%40%50%60%70%80%90% Always occupied, does not apply Rent my home long term (more than 6-months at a time) Rent my home mid-term/seasonal (1- to 6-months at a time) Rent my home short term (less than 1-month at a time) Not occupied/vacant Newcomers Full Time Part Time July 6, 2021 - Page 77 of 210 The Mountain Migration Report • 2021 4RESIDENT EMPLOYMENT PATTERNS July 6, 2021 - Page 78 of 210 The Mountain Migration Report • 2021 Resident Employment Patterns | 23 With the increase in residents occupying homes, it is important to understand whether residents are working remotely, employed locally or retired. The source of employment can affect the potential stability of new residents and the extent to which remote work policy changes may impact their ability or desire to stay. It also impacts the local sustainability of businesses and their ability to keep and attract employees if, for example, new residents with outside employment or retired part-time residents are displacing local employees that fill jobs. Employment Status The employment status of newcomer households is more similar to full-time resident households than part-time, with about 90% of households having at least one employed person. Part-time residents are much more likely to have at least one retired person in their household than other residents. Employment Location Potential changes in remote working policies may affect newcomers more so than other residents. Newcomers are mostly employed by an out-of-county employer and are less likely to be self-employed than full-time or part-time residents. Employment location patterns were relatively consistent across all counties in the region, with the exception that full-time residents in Routt and Grand counties were slightly more likely to have a household member working for an out-of-county employer. SOURCE OF EMPLOYMENT FOR RESIDENTS EMPLOYMENT STATUS OF RESIDENT HOUSEHOLDS Source: 2021 Mountain Migration Survey • *Multiple select question, meaning that percentages add to over 100% Source: 2021 Mountain Migration Survey • *Multiple select question, meaning that percentages add to over 100% The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 27 *Multiple select question, meaning that percentages add to over 100% Employment Location Potential changes in remote working policies may affect newcomers more so than other residents. Newcomers are mostly employed by an out-of-county employer and are less likely to be self-employed than full-time or part-time residents. Employment location patterns were relatively consistent across all counties in the region, with the exception that full-time residents in Routt and Grand counties were slightly more likely to have a household member working for an out-of-county employer. Source of Employment for Residents #9 Source: 2021 Mountain Migration Survey *Multiple select question, meaning that percentages add to over 100% Newcomers are more likely than other residents to have a household member working from a home office; however, over 50% of all households have someone working from home. 0% 10% 20% 30% 40% 50% 60% 70% 80% Work for an employer in the county Work for an out-of-county employer Hold a seasonal job in the county Self-employed Newcomers Full Time Part Time Commented [JS4]: Highlight for quote The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 26 Section 4 – Resident Employment Patterns With the increase in residents occupying homes, it is important to understand whether residents are working remotely, employed locally or retired. The source of employment can affect the potential stability of new residents and the extent to which remote work policy changes may impact their ability or desire to stay. It also impacts the local sustainability of businesses and their ability to keep and attract employees if, for example, new residents with outside employment or retired part-time residents are displacing local employees that fill jobs. Employment Status The employment status of newcomer households is more similar to full-time resident households than part-time, with about 90% of households having at least one employed person. Part-time residents are much more likely to have at least one retired person in their household than other residents. Employment Status of Resident Households #8 Source: 2021 Mountain Migration Survey 91% 10% 29% 87% 8% 28% 70% 6% 62% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Employed Unemployed and searching for work Retired Newcomers Full Time Ninety percent of newcomer and full-time resident households have at least one employed person. 90% July 6, 2021 - Page 79 of 210 The Mountain Migration Report • 2021 Over 50% of all households have someone working from home. Newcomers are more likely than other residents to have a household member working from a home office. The majority of full-time households have at least one person who commutes to a job in the county. With the high proportion of visitor service, retail, bar/restaurant, and lodging jobs in the study area, not to mention construction, many full-time residents have jobs that require at least some, if not all, of their work to occur at their place of employment. Most respondents expect to be able to continue working from home. About 20% indicated, however, that it depends upon work policies of their employer. Changes in work policies is a key factor that can impact how many new and part-time residents can stay in their respective county and for how long. DO RESIDENTS COMMUTE TO A JOB OR WORK FROM HOME? WILL RESIDENTS CONTINUE TO WORK FROM HOME IN 2022-2025? Source: 2021 Mountain Migration Survey • *Multiple select question, meaning that percentages add to over 100% Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 29 Do Residents Commute to a Job or Work from Home? #10 Source: 2021 Mountain Migration Survey *Multiple select question, meaning that percentages add to over 100% Most respondents expect to be able to continue working from home. About 20% indicated, however, that it depends upon work policies of their employer. Changes in work policies is a key factor that can impact how many new and part-time residents can stay in their respective county and for how long. Will Residents Continue to Work from Home in 2022-2025? 0% 10% 20% 30% 40% 50% 60% 70% 80% Home office in the county Travel to a job/office in the county Commute to an out-of-county job Newcomers Full Time Part Time The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 30 #11 Source: 2021 Mountain Migration Survey 0% 10% 20% 30% 40% 50% 60% Yes, will work exclusively at home Yes, will split time between home and business/job location No, will no longer work at home It depends upon the work policies of employer Newcomers Full Time Part Time Resident Employment Patterns | 24 Over fifty percent of all households have someone working from home. July 6, 2021 - Page 80 of 210 The Mountain Migration Report • 2021 Resident Employment Patterns | 25 Household Income by Employment Location The household incomes of residents who work in local county jobs compared to residents who work for out-of- county employers illustrates the extreme difficulty that residents employed locally have when competing for homes with newcomers and part-time residents. As shown below: • The majority of households working for county employers within the study area earn under $150,000 per year (70%). • Households working for out-of-county employers, which predominately include newcomers and part-time residents, mostly earn over $150,000 per year (75%). In other words, the majority of full-time residents employed locally cannot successfully compete for housing when escalated demand and prices are driven by households earning much higher incomes. GROSS HOUSEHOLD INCOME BY EMPLOYMENT TYPE/LOCATION Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 31 Household Income by Employment Location The household incomes of residents who work in local county jobs compared to residents who work for out-of-county employers illustrates the extreme difficulty that residents employed locally have when competing for homes with newcomers and part-time residents. As shown below: • The majority of households working for county employers within the study area earn under $150,000 per year (70%). • Households working for out-of-county employers, which predominately include newcomers and part-time residents, mostly earn over $150,000 per year (75%). In other words, the majority of full-time residents employed locally cannot successfully compete for housing when escalated demand and prices are driven by households earning much higher incomes. Gross Household Income by Employment Type/Location #12 Source: 2021 Mountain Migration Survey 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Work for County Employer Work for Out of County Employer County Seasonal Job Self Employed% of respondentsUnder $50,000 $50,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $299,999 $300,000 or more July 6, 2021 - Page 81 of 210 The Mountain Migration Report • 2021 5HOUSING MARKET IMPACTS July 6, 2021 - Page 82 of 210 The Mountain Migration Report • 2021 Housing Market Impacts | 27 The below chart illustrates the income disparity between full-time residents who fill local jobs and newcomers and part-time residents, who primarily earn their living elsewhere: • Close to 70% of newcomers and 80% of part-time residents have household incomes over $150,000 per year. • In contrast, 60% of full-time residents earn under $150,000 in household income per year. The majority of full-time residents making their living in the county do not have the income to compete for housing in the current high competition environment. The majority of full-time residents making their living in the county do not have the income to compete for housing in the current high competition environment. The COVID pandemic rapidly accelerated trends that have been going on for years in amenity rich mountain communities. Prior to COVID-19, the housing markets in the six-county study area were already in a state of too much demand for too little supply, resulting in fast rising prices. High part-time resident demand for homes, visitor demand for vacation rentals, and investment buyers were all competing for the scarce housing inventory with residents who make their living locally. The increased housing demand fueled by the ability to work from home and, to a lesser extent, COVID fears and civil unrest, has further added to this competition, causing an explosion in home prices and plummeting inventory. GROSS HOUSEHOLD INCOME BY LENGTH OF RESIDENCY Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 34 #13 Source: 2021 Mountain Migration Survey Newcomers and full-time residents are the most susceptible to housing problems related to the COVID pandemic and corresponding high-demand and short-supply of housing. Despite their income advantage over full-time residents, about 16% of newcomers still had severe difficulty finding a place to live. Job loss and significant rent increases were the next most common issues. Housing Problems Affecting Respondents in 2020 0% 10% 20% 30% 40% 50% 60% Newcomers Full Time Part TimePercent of respondentsUnder $50,000 $50,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $299,999 $300,000 or more July 6, 2021 - Page 83 of 210 The Mountain Migration Report • 2021 Newcomers and full-time residents are the most susceptible to housing problems related to the COVID pandemic and corresponding high-demand and short-supply of housing. Despite their income advantage over full-time residents, about 16% of newcomers still had severe difficulty finding a place to live. Job loss and significant rent increases were the next most common issues. Renters are commonly in the most unstable housing situations in these communities, as shown below. Nearly one-third had severe difficulty finding a place to live, one-fourth lost a job, and almost one-in-five faced significant rent increase in 2020. HOUSING PROBLEMS AFFECTING RENTERS IN 2020 Source: 2021 Mountain Migration Survey FULL-TIME RESIDENT RENTERS Miss rent or mortgage payment(s)8% Lose your job 24% Move when rental was sold or converted into a short-term rental 8% Experience significant rent increase 18% Have severe difficulty finding a place to live in the county 31% HOUSING PROBLEMS AFFECTING RESPONDENTS IN 2020 Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 35 #14 Source: 2021 Mountain Migration Survey Renters are commonly in the most unstable housing situations in these communities, as shown below. Nearly one-third had severe difficulty finding a place to live, one-fourth lost a job, and almost one-in-five faced significant rent increase in 2020. Housing Problems Affecting Renters in 2020 Full-time resident: Renters Miss rent or mortgage payment(s) 8% Lose your job 24% Move when rental was sold or converted into a short-term rental 8% Experience significant rent increase 18% Have severe difficulty finding a place to live in the county 31% Source: 2021 Mountain Migration Survey 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Miss rent or mortgage payment(s) Lose your job Move when rental was sold or converted into a short term rental Experience significant rent increase Sell your home in the county Have severe difficulty finding a place to live in the county Newcomers Full Time Part Time Housing Market Impacts | 28July 6, 2021 - Page 84 of 210 The Mountain Migration Report • 2021 Housing Market Impacts | 29 Rapid Escalation in Sales, Sharp Drop in Availability The buying frenzy has resulted in a record-breaking year for gross sales volume and total transactions. Activity into 2021 has not slowed down. From 2019 to 2020, transactions increased 26% and gross sales volume rose 64% in the six-county region. A total of $13.4 billion in sales were logged in 2020, compared to $8.2 billion the year before. Gross sales volume in four of the six counties increased about 50% or more. OWNERSHIP MARKET CHANGE IN GROSS SALES VOLUME & NUMBER OF TRANSACTIONSBy County • 2019-2020 2020 GROSS SALES VOLUME % CHANGE: 2019-2020 TOTAL TRANSACTIONS % CHANGE: 2019-2020 Eagle County $3,493,843,331 53%2,572 27% Grand County $994,701,568 39%2,016 15% Pitkin County $4,083,249,373 129%1,028 46% Routt County $1,345,486,314 49%1,883 36% San Miguel County $1,151,324,169 94%811 50% Summit County $2,319,029,219 22%2,800 15% CHANGE IN GROSS SALES VOLUME AND NUMBER OF TRANSACTIONSSix County Region • 2016-2020 Source: Land Title Guarantee Company The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 36 Ownership Market Rapid Escalation in Sales, Sharp Drop in Availability The buying frenzy has resulted in a record-breaking year for gross sales volume and total transactions. Activity into 2021 has not slowed down. From 2019 to 2020, transactions increased 26% and gross sales volume rose 64% in the six-county region. A total of $13.4 billion in sales were logged in 2020, compared to $8.2 billion the year before. Gross sales volume in four of the six counties increased about 50% or more. Change in Gross Sales Volume and Number of Transactions: Six County Region #15 Source: Land Title Guarantee Company Change in Gross Sales Volume and Number of Transactions: By County 2020 Gross Sales Volume % change: 2019-2020 Total Transactions % change: 2019-2020 Eagle County $3,493,843,331 53% 2,572 27% - 2,000 4,000 6,000 8,000 10,000 12,000 $0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000 $16,000,000,000 2016 2017 2018 2019 2020 Total TransactionsGross Sales VolumeGross sales volume Total transactions July 6, 2021 - Page 85 of 210 The Mountain Migration Report • 2021 With such a rapid escalation in buyer demand, the supply of homes for sale are at record lows. Many communities are lucky if they have one month of inventory. The buying frenzy at the start of the pandemic absorbed available inventory faster than new units were coming onto the market. • In Routt County during the first quarter of 2021, homes were selling at nearly twice the rate that they have been coming available, quickly depleting already scarce inventory. • In Telluride, as of March 2021, only seven homes were on the market, placing availability in critical status. • In addition to an already depleted inventory, Grand County suffered the East Troublesome Fire in October 2020, losing over 100 homes. While several short-term rental owners stepped up and helped house some of the displaced residents, finding long-term replacement housing for those who lost homes has been a struggle. The housing shortage has spurred some development activity in Eagle County in the down valley communities where land is still available and there are approved projects. Other communities, such as Telluride, do not have that luxury. Telluride are constrained by public lands and dramatic topography and is mostly built-out; the nearest meaningful land available to develop is 45 minutes or more away. Pitkin County has a similar dynamic. The consensus among focus group members from these communities is that the demand is so high, they could not keep up with the growing housing shortage even if they had the land capacity upon which to build. Prices at Record Highs Housing prices in all counties are at record highs. Between 2019 and 2020, the average sale prices of all homes (single family and multi-family combined) increased from 10% in Summit County up to of 55% in Pitkin County. These prices continue to de-couple from those earning working wages from employment in these places. • In Telluride and Pitkin County, where average homes sale prices are multiple millions of dollars, fixer uppers sell for $1 million or more. • Even in Grand County, which had the lowest average home sale price last year of about $670,000, only ten homes are available on the for under $1 million. • It is not uncommon for properties to receive 20 offers per home; a good portion of them in cash. “Demand is so high that construction could not keep up even if we had the land capacity. ” Local Realtor The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 39 #16 Source: Land Title Guarantee Company Workforce housing: All counties in the study area have workforce housing programs in place, with some communities having thousands of homes permanently deed restricted for local workforce occupancy and/or price limited. By ensuring that a supply of homes remain available for residents that make their living in the community, deed restrictions effectively remove homes from the speculative buying market, meaning that residents to not have to compete with outside buyers and that homes are protected from the resulting extreme escalation in prices, which can quickly outpace local wages. While homes dedicated for residents working locally are needed now more than ever, the widespread consensus is that, in this environment, the existing and currently pending supply is not nearly enough. • Summit County has 22 new deed restricted homes coming available. They had 66 applicants. • The employee housing program in Aspen has been in place since the 1970’s; they recently received 75 applications for one 1- bedroom home. They frequently have ten-times more applications than units available. Land sales: Where buyers had historically looked to build their own home as a less expensive alternative to purchasing existing homes, this option is largely gone as well. $1,489,028 $673,435 $4,436,734 $866,527 $2,023,915 $903,385 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 Eagle County Grand County Pitkin County Routt County San Miguel County Summit CountyAverage Residential Sale Pricee2016 2017 2018 2019 2020 Source: Land Title Guarantee Company AVERAGE SALE PRICE OF HOMES: 2016 TO 2020 “We attempted to buy a home in Grand County in Oct of 2020. We offered their asking price of $749,000. We were one of 7 offers, all higher than ours. They accepted a cash offer for $250,000 over asking.” Full-time Resident Housing Market Impacts | 30July 6, 2021 - Page 86 of 210 The Mountain Migration Report • 2021 Housing Market Impacts | 31 Full-time Residents Are Losing Ground The demand for homes from part-time owners and other interests has long constrained the housing inventory that is available to local workers. As shown below, only about 36% of all homes sales in 2020 were to full-time residents in the study area. This varied from a low of 20% to a high of 50%, depending upon the county. WORKFORCE HOUSING All counties in the study area have workforce housing programs in place, with some communities having thousands of homes permanently deed restricted for local workforce occupancy and/or price limited. By ensuring that a supply of homes remain available for residents that make their living in the community, deed restrictions effectively remove homes from the speculative buying market, meaning that residents do not have to compete with outside buyers and that homes are protected from the resulting extreme escalation in prices, which can quickly outpace local wages. While homes dedicated for residents working locally are needed now more than ever, the widespread consensus is that, in this environment, the existing and currently pending supply is not nearly enough. • Summit County has 22 new deed restricted homes coming available. They had 66 applicants. • The employee housing program in Aspen has been in place since the 1970’s; they recently received 75 applications for one 1-bedroom home. They frequently have ten-times more applications than units available. • Many deed restrictions do not adequately address remote work. LAND SALES Where buyers had historically looked to build their own home as a less expensive alternative to purchasing existing homes, this option is largely gone as well. • Land prices have escalated over 100% in some communities. In Aspen, a lot sells for $20 million. • Construction materials and labor costs have drastically increased. In Routt County, it is not uncommon to pay $500 or more per square foot to build a home. • Labor is scarce. In Grand County and Telluride, contractors are commonly booked three-years out. It is an ironic cycle – many contractors cannot hire laborers because there is no housing. RESIDENCE OF BUYERSix-County Region Source: Land Title Guarantee Company (County Clerk & Recorder’s and Assessor’s Offices) 31% 36% 0% 33% The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 41 #18 Source: Land Title Guarantee Company (County Clerk and Recorder’s and Assessor’s Offices) The percentage of homes purchased by local buyers dropped six percentage points since 2016 in region the region – this is a loss of over one point per year. As shown below: • The largest decline occurred in Pitkin County, dropping nearly three percentage points per year, followed by Summit County and Eagle County. This loss accelerated in most counties in 2020. • Buyers from other areas in Colorado showed the largest rise in all but Pitkin and San Miguel counties, where out of state buyers are more prominent. Percentage of Total Sales to County Residents: 2016 - 2020 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Eagle County Grand County Pitkin County Routt County San Miguel County Summit CountyPercentage of SalesLocal Other Colorado Out of state International Local buyers have been losing ground for several years, which accelerated in most counties in 2020. Source: Land Title Guarantee Company (County Clerk & Recorder’s and Assessor’s Offices) RESIDENCE OF BUYERS BY COUNTY2020 Many contractors cannot hire laborers because there is no housing. July 6, 2021 - Page 87 of 210 The Mountain Migration Report • 2021 The percentage of homes purchased by local buyers dropped six percentage points since 2016 in region the region – this is a loss of over one point per year. As shown below: • The largest decline occurred in Pitkin County, dropping nearly three percentage points per year, followed by Summit County and Eagle County. This loss accelerated in most counties in 2020. • Buyers from other areas in Colorado showed the largest rise in all but Pitkin and San Miguel counties, where out of state buyers are more prominent. It should be noted that, although the percentage of homes sold to local residents dropped in 2020 compared to 2019, the total number of homes sold to local residents increased in 2020 in every county in the study area, except Summit County. This is in large part due to the large increase in sales in total in each of these counties in 2020. Prior to 2020, the number of sales to local residents had been dropping in the study area as a whole since 2017. The counties in the study area have seen an exaggerated trickle-down effect during COVID due to constrained housing supplies and fast rising prices in all counties. Where local buyers have had to compromise on their home location for years due to being priced out of their first or second choice communities, all buyers are experiencing the same problem. The town of Breckenridge has seen more $2 million sales in the past few months than in the prior twelve, in part because these buyers could not find homes in other higher priced counties. Likewise, Grand County has had multi-million dollar properties selling within days, rather than taking the typical many months. The other side of the coin is “who is selling.” Real estate agents indicated that a mix of part-time and full-time residents have been selling their homes, but at too slow of a pace to keep up with demand. • Locals cashing out on their homes. The majority of these residents move away either by choice (e.g., to cash out at a peak, move to warmer climates, to be nearer family, medical reasons, etc.) or because they do not have a choice (e.g., cannot find another home). In Pitkin County, younger sellers move down valley, but older sellers typically leave. In Eagle County, the 30% or so that stay in the county will move down valley where homes are typically less expensive. Some are using the high prices to their advantage and retiring early. • Part-time owners upgrading. This includes selling ski condominiums to purchase properties in town center or more rural areas. Or upgrading units, not necessarily location, with the intent to use it more. Local buyers have been losing ground for several years, which accelerated in most counties in 2020. PERCENTAGE OF TOTAL SALES TO COUNTY RESIDENTS2016 - 2020 Source: Land Title Guarantee Company (County Clerk & Recorder’s and Assessor’s Offices) The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 42 #19 Source: Land Title Guarantee Company (County Clerk and Recorder’s and Assessor’s Offices) It should be noted that, although the percentage of homes sold to local residents dropped in 2020 compared to 2019, the total number of homes sold to local residents increased in 2020 in every county in the study area, except Summit County. This is in large part due to the large increase in sales in total in each of these counties in 2020. Prior to 2020, the number of sales to local residents had been dropping in the study area as a whole since 2017. The counties in the study area have seen an exaggerated trickle-down effect during COVID due to constrained housing supplies and fast rising prices in all counties. Where local buyers have had to compromise on their home location for years due to being priced out of their first or second choice communities, all buyers are experienced the same problem. The town of Breckenridge has seen more $2 million sales in the past few months than in the prior twelve, in part because these buyers could not find homes in other higher priced counties. Likewise, Grand County has had multi-million dollar properties selling within days, rather than taking the typical many months. The other side of the coin is “who is selling.” Real estate agents indicated that a mix of part-time and full-time residents have been selling their homes, but at too slow of a pace to keep up with demand. • Locals cashing out on their homes. The majority of these residents move away either by choice (e.g., to cash out at a peak, move to warmer climates, to be nearer family, medical reasons, etc.) or because they do not have a choice (e.g., cannot find 48% 24% 43%48% 37% 21% 0% 10% 20% 30% 40% 50% 60% 70% Eagle County Grand County Pitkin County Routt County San Miguel County Summit County% of Sales to Locals2016 2017 2018 2019 2020 Housing Market Impacts | 32July 6, 2021 - Page 88 of 210 The Mountain Migration Report • 2021 Housing Market Impacts | 33 Buyer Preferences & Home Use Real estate agents noted a shift of focus with new buyers compared to prior years. • More new buyers were motivated by their ability to work remotely than in the past. Many buyers during COVID were reorienting priorities. Work from home opportunities opened up options to relocate where they wanted. Most buyers were purchasing with the intent to use their homes, and for more time on average than in the past. Others were coming to sample a community for a few months and see if it sticks. • Correspondingly, the speculative buyer, who purchased with the intent to flip or use homes solely for profit, was not as prevalent during this migration period. The motivation of the buyer affects the type of home product needed: • Fixer uppers were not preferred – most wanted turn-key homes or homes that were immediately livable. • Home office space was a premium. • Having enough room for families to live, rather than simply visit. • Rural and in-town locations were equally in demand. Will the Buyer Frenzy Continue? While the rapid rise in prices and buying frenzy mirrors the events prior to the 2007/08 recession, this market is driven by a different buyer – one who wants to move in and use their home rather than investors. The prevalent perception among area real estate agents was that the high-demand, short-supply housing market is here to stay, at least for the foreseeable future: • Buyers last year were the first wave of location-neutral movers and others that see “it can work” are continuing to come. Demand in the early part of 2021 is still accelerating. • The other side is shrinking supply. Despite demand remaining high, many areas are facing a stagnant market and large drop in sales simply due to a supply problem. Some communities are already at critical low sale inventory. In Aspen, brokers are calling homeowners asking if they want to sell to find homes. For the most part, those that wanted to cash in have; others that might cash in are not because they will not find another home. “More to come” and “interesting changes ahead.” Local Real Estate Agents July 6, 2021 - Page 89 of 210 The Mountain Migration Report • 2021 The Start of a New Reality? Many see the current boom being a start to a new reality for mountain towns, bringing some positive change, but also increasing many historic challenges. On the potentially positive side: • Rising interest from location-neutral workers to relocate to these mountain communities has the potential to bring more economic diversification for these predominantly tourism-driven economies. New location-neutral worker residents earn more and can spend more at local businesses. If the ability for location-neutral workers to work from home continues, instead of leaving the community to again commute to their job, some may choose to stay and invest locally, or start businesses, increasing the entrepreneurial potential in these communities. • With more residents in town to support local businesses, shifting economic priorities for some communities may be on the horizon. Tourism marketing and expenditures focused primarily on the visitor experience may become less of a priority. Pressure to complete capital projects supporting livability and quality-of-life improvements will increase. On the challenging side: • Finding employees to fill service jobs for residents as well as jobs geared for visitors will be increasingly difficult. The basic human capital necessary to maintain a community will likely become even less possible. Incoming location-neutral workers will not be filling these “local jobs” and will outcompete local workers for housing. This hurts the ability for local businesses to find, keep, and attract employees, lowering the level and quality of services they can provide to residents and visitors alike. This has been a struggle for resort communities for years; and is primed to get worse, at least in the near term. • Barring a recession that surpasses the fall in property values seen in 2008, many do not see what could bring affordability back for local workers. Given these factors, businesses and communities are facing a potentially tough transition in the years ahead. Housing Market Impacts | 34July 6, 2021 - Page 90 of 210 The Mountain Migration Report • 2021 Housing Market Impacts | 35 The Big Picture – From Shut Down to Frenzy Governor Polis announced the closure of all Colorado ski areas on Saturday, March 14th, near the end of the 2019/20 season. While it caught many employees and visitors by surprise, the fortuitous timing minimally impacted the rental market since it occurred at a time when many renters are in transition, out of work or without income for a month or two. Communities had very few vacant long-term rental units prior to COVID. Most year-round renters remained in their units during COVID, meaning that the availability of long-term rentals did not increase. Many seasonal workers left; however, including J1 visa holders. As seasonal rentals were vacated, property managers responded by converting shared bedrooms into single/couple occupancy and increased cleaning of common areas. Employers who provide housing turned away all but their employees, unlike in typical years when they maintain full-occupancy by renting to the general population. This contributed to a rental unit shortage. By June, the market heated up with inquiries from people outside the community, most from urban areas, wanting to move to the mountains. By July, rents were starting to spike above their already high levels. The frenzy continued through the fall into winter with property managers in the six counties reporting a constant stream of inquiries. In Summit County, a property manager who normally takes in $700/year in $30 application fees received about $4,000 from applications between October 1st and December 15th. A Routt County property manager called the onslaught from people wanting to move to the mountains a trifecta created by a combination of the ability to work remotely (the single biggest factor) in combination with concerns about COVID contagion and civil unrest. Impacts on Long-term Rental Inventory – Gains & Losses Although most property owners reported managing about the same number of units in 2020 as in 2019, there were shifts in the rental inventory. Initially, there were some gains in the number of long-term rentals when the March shutdown and cancellation of all festivals and other events fueled fears that tourism would be way down in the summer. As such, some owners converted their short-term vacation rentals (STR’s) into long-term rentals. The local workforce did not benefit from this increase, however, as newcomers working remotely could pay much higher rents. The inventory of long-term rentals was reduced when some units were sold by their owners, as noted above. Rentals were primarily purchased by new owners moving in and occupying their homes, although inventors were also active in the market with high rents and low interest rates making it possible to cash flow units. Six 900 square foot multifamily units in Aspen built for rentals sold at $1,800 to $1,900 per square foot and only one remained a rental unit. One positive impact the pandemic had on the rental market was a reduction in the number of long-term rentals being converted into short-term rentals. While the boom in the popularity of short-term rentals has negatively impacted long-term workforce rental housing throughout the mountains in recent years, none of the property managers interviewed reported this occurring in 2020. RENTAL MARKET July 6, 2021 - Page 91 of 210 The Mountain Migration Report • 2021 Impacts on Rents – Locals Get Relief But Market Rates Spike The timing of the shutdown in the spring, when most leases in the mountain expire, turned out to be a stroke of luck for many renters. With fears that tenant incomes would plummet, rents were held steady by many property owners. At least one property owner in Telluride provided one month free. The town of Telluride provided a free month of rent to residents in 187 town-owned rental housing in both April 2020 and January 2021, funding for which was later provided by the Colorado Department of Local Affairs. The Town of Breckenridge forgave one month rent on about 150 Town-owned rentals if impacted by COVID and agreed to reduced payment plans if further assistance was required. In Eagle County, all residents of Lake Creek Village Apartments received free rent in April and reduced rent in May and June. Some property managers in Grand County and Summit County reported no increases in rents in 2020. Rent delinquencies were not a widespread problem. Managers reported some renters had higher incomes than typical in the spring, from a combination of unemployment, stimulus payments, and Paycheck Protection Program (PPP) payments. Rent assistance, however, was crucial for some. The Family and Intercultural Resource Center (FIRC) in Summit County, with funds from the Colorado Department of Local Affairs and significant contributions from local governments, provided rental assistance countywide. According to one property manager in Grand County, some renters took advantage of the eviction moratorium imposed in Colorado and chose not to pay rent, but most remained current with their payments. Since these early concerns, market rents have skyrocketed beyond the level that most locally employed renters can afford. In 2020 increases in market rents ranged from about 20% to 40% on units that turned over, and on some where leases were renewed. Rent escalations were highest among the larger, family friendly, more expensive homes. While rents have long been high in Colorado’s ski towns, this rate of increase was unprecedented. Some examples: • In Aspen, a three-bedroom townhome was renting for $6,800/month. When it turned over in October 2020, the rent was raised to $10,000/month. • In Summit County, a unit at $6,000 was increased to $8,000/month, one at $4,500 went to $6,000, and another at $3,900/month for one year went to $6,200/month for the ski season. The overall market rent for listings in February and March in the six counties averaged $3,245 per month for all types of units combined. This includes rentals for high-end properties as well as those for workers. While rents have long been curtailed in the mountain towns by the dominance of low wage tourism-based jobs, the influx of renters who work remotely has clearly increased rates far beyond levels that local wage earners can pay. As shown below: • Rents are highest in Pitkin County, followed by San Miguel County. • Rates are similar among Eagle, Routt, and Summit counties. • Rents are lowest in Grand County. Market rents skyrocketed 20% to 40% higher in 2020. Housing Market Impacts | 36July 6, 2021 - Page 92 of 210 The Mountain Migration Report • 2021 Housing Market Impacts | 37 Rents now average over $5,000 per month for single family homes. Condominiums average over $3,000 per month in most of the region. AVERAGE RENT BY BEDROOMS AVERAGE RENT BY UNIT TYPE & COUNTY Consultant search of local and online for rent listings, February and March 2021 Consultant search of local and online for rent listings, February and March 2021 Note: With only 1 apartment listing in San Miguel County, the average rent of $1,000 should not be considered representative of the market and in Grand County, the one single family home advertised for rent at $1,200 per month was not indicative of market rates. The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 48 #20 Consultant search of local and online for rent listings, February and March 2021 Rents now average over $5,000 per month for single family homes. Condominiums average over $3,000 per month in most of the region. Average Rent by Unit Type and County $3,125 $2,111 $4,577 $3,047 $3,903 $3,066 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Eagle Grand Pitkin Routt San Miguel Summit The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 49 #21 Consultant search of local and online for rent listings, February and March 2021 Note: With only 1 apartment listing in San Miguel County, the average rent of $1,000 should not be considered representative of the market and in Grand County, the one single family home advertised for rent at $1,200 per month was not indicative of market rates. Rental Availability – What Availability? In February and March 2020, tracking of online listings in the six counties identified a total of 260 listings for long-term units. This equated to an extremely low vacancy rate of approximately 1.5%. Some property managers stopped accepting inquiries. Others created waitlists for the first time. As of May 2021, there are no signs that the market is softening. Rental Listings – Mar/Apr 20202 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Eagle Grand Pitkin Routt San Miguel Summit apartment condo single family July 6, 2021 - Page 93 of 210 The Mountain Migration Report • 2021 Rental Availability – What Availability? In February and March 2020, tracking of online listings in the six counties identified a total of 260 listings for long-term units. This equated to an extremely low vacancy rate of approximately 1.5%. Some property managers stopped accepting inquiries. Others created waitlists for the first time. As of May 2021, there were no signs that the market was softening. Demand remained high for all types of rental units. Some property managers reported than one bedroom and other small units were the most sought after by established locals because, with concerns about COVID contagion, it was important to have few or no roommates. Larger units were very popular, however, with newcomers moving in since many were families. Consultant search of local and online for rent listings, February and March 2021*Apartment refers to a unit in an apartment building in which all units are owned by one owner and individual units cannot be sold separately. This is differentiated from a condo, which are homes that can be individually owned and sold, meaning that one building may have a different owner for each unit. COUNTY APARTMENT*CONDO SINGLE FAMILY # OF LISTINGS RENT RANGE Eagle $2,392 $3,227 $3,963 82 $1,100-$7,000 Grand $2,227 $1,955 $1,200 26 $875-$6,000 Pitkin $2,388 $4,478 $7,000 43 $1,500-$10,000 Routt $1,588 $3,209 $5,583 26 $1,450-$7,500 San Miguel $1,000 $3,753 $8,000 10 $1,000-$8,000 Summit $1,787 $2,698 $5,436 73 $1,392-$10,000 Grand Total $2,119 $3,207 $5,464 260 RENTAL LISTINGS March & April 2020 Housing Market Impacts | 38July 6, 2021 - Page 94 of 210 The Mountain Migration Report • 2021 Housing Market Impacts | 39 Short-Term & Mid-Term Rentals While some short-term rentals were converted into long-term rentals during the shutdown, other noteworthy changes include: • Visitors stayed longer. Units that typically rented for several days to a week were often rented for several weeks. • Owners moved into their short-term rentals, removing them from the rental pool. A manager of high-end STR’s in the Vail area reported that owners moved into three of their 14 units for most of 2020. • The mid-term (i.e, a one- to five-month rental) and seasonal rental market expanded. A Summit County manager provided an example of a couple from New York who spent the summer on Nantucket, fall in New England, and ski season in Breckenridge. • Cost was not an issue for many short- and mid-term renters. A Steamboat manager reported that the highest increase in rents occurred among the most expensive units. • Size was important. Demand for large homes with enough bedrooms to accommodate extended families became exceptionally strong. Renter Profiles – Demographics Changing As reported by property managers, newcomers in 2020 differed from long-term residents in several ways, including their commitment to community. They remained flexible by avoiding long-term commitments while testing living in the mountains and exploring how long they might be able to work remotely. They often kept their homes elsewhere. They rented to stay flexible and to avoid maintenance responsibilities. Many new rental households included children. Historically, renters moving to mountain ski towns have been singles and younger couples who do not have children until after becoming established in communities. The new renters are generally older (30’s and 40’s), well established in their careers, and have children. The characteristic of new renters that stands out most to property managers is their wealth. The income levels of newcomers are much higher than renters who have moved to the mountains in the past. As one property manager said, “Even young families with children have tons of money.” The increase in rents and lack of inventory led some long-time residents to move away. Residents who sold homes when prices climbed were seldom able to find a rental that would allow them to stay in their communities. As one property manager in Telluride said, “Our community has moved to Ridgway.” July 6, 2021 - Page 95 of 210 The Mountain Migration Report • 2021 6SERVICES NEEDS AND PREFERENCES July 6, 2021 - Page 96 of 210 The Mountain Migration Report • 2021 Services Needs & Preferences | 41 Planning for the future provision of community, business and home services necessitates understanding their importance to, usage of, and quality for residents needing and desiring the services. This section evaluates whether newcomers, full-time and part-time residents have varying service needs or priorities. If increased use of properties continues, this information can help communities plan for future needs. Community Services & Amenities The importance that residents place on community services is directly related to how often they use those services, with a few exceptions. In the time of COVID, health care/hospital ranked the most important community service of 13 services. COVID increased the awareness of limitations in health care availability, such as the lack of ICU beds in many mountain hospitals. Town and county parks were also very important to residents as were cultural events/entertainment. Full-time residents generally place greater importance on, and more often use, most community services. The exceptions are cultural events/entertainment, religious/church services and public transit, which part-time residents use more frequently than full-time residents. IMPORTANCE OF COMMUNITY SERVICESFull- and Part-time Compared The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 53 Importance of Community Services Full-time and Part-time Compared Source: 2021 Mountain Migration Survey Full-time residents more often use health care, schools, childcare, the library, recreation programs and parks than do part-time residents. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Private K-12 schools Religious/church services Food bank Emergency housing or utility assistance Senior services (in home care, meals on wheels, transit… Child care Public transit Recreation programs/leagues Public K-12 schools Library Cultural events/entertainment Town/county parks Health care/hospital Average Importance Rating 1=not important to 5=very important Part Time Full Time Healthcare/hospital Town/county parks Cultural events/entertainment Library Public K-12 schools Recreation programs/leagues Public transit Child care Senior services (in home care, meals on wheels, transit service, senior center, etc.) Emergency housing or utility assistance Food bank Religious/church services Private K-12 schools Source: 2021 Mountain Migration Survey July 6, 2021 - Page 97 of 210 The Mountain Migration Report • 2021 Full-time residents more often use health care, schools, childcare, the library, recreation programs and parks than do part-time residents. There were a few differences between newcomers and long-timers in importance placed on community services. The key difference was the greater importance long-timers placed on senior services (in home care, meals on wheels, transit service, senior center, etc.), church services, food banks, and emergency housing or utility assistance. Also, this use of community services is similar among newcomers and long-timers. An interesting difference is that newcomers placed slightly more importance on public transit and used it more often than long-timers. Differences between full-time owners and renters are minimal, although renters place greater importance on three community services – housing or utility assistance, food bank, and public transit, which they use more often than owners. There was only slight variation in the importance placed on community services among the six counties. Some nuances include: • San Miguel County residents rated town/county parks, recreation programs, the library, and public schools the highest. • Pitkin County residents placed greater importance on public transit and cultural events and entertainment. QUALITY OF BUSINESS SERVICESNewcomers & Long-timers ComparedIMPORTANCE OF BUSINESS SERVICESNewcomers & Long-timers Compared The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 56 #24 Source: 2021 Mountain Migration Survey There were also few differences between full and part-time residents, except for professional services, which are more important to and used more often by full-time residents, and airport shuttles, which are more important to part-time residents. Importance of Business Services Full and Part-time Compared 0.0 1.0 2.0 3.0 4.0 Commercial flights High speed internet Airport shuttles Professional services (printing, book keeping, computer support, tax support, etc.) Shipping/Fed Ex, UPS, USPS) Average Quality Scale from 1=poor to 5=excellent Longtimers Newcomers The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 55 #23 Source: 2021 Mountain Migration Survey Quality of Business Services Newcomers and Long-timers Compared 0.0 1.0 2.0 3.0 4.0 5.0 Airport shuttles Professional services Commercial flights Shipping/Fed Ex, UPS, USPS) High speed internet Average importance Rating: Scale from 1=not important to 5=very important Longtimers Newcomers Source: 2021 Mountain Migration SurveySource: 2021 Mountain Migration Survey Business Services As with community services, newcomers and long-timers place a similar level of importance on business services. The most notable difference was in professional services (printing, book keeping, computer support, tax support, etc.), these were less important to newcomers who are less likely to be self-employed and more likely to work for out- of-county employers for which this business support may be provided elsewhere. Quality high speed internet was rated as the most important service by both long-timers and newcomers. Professional services (printing, book keeping, tax support, computer support) Services Needs & Preferences | 42July 6, 2021 - Page 98 of 210 The Mountain Migration Report • 2021 Services Needs & Preferences | 43 IMPORTANCE OF BUSINESS SERVICES Full & Part-time Compared QUALITY OF BUSINESS SERVICES Full- and Part-time Compared The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 57 #25 Source: 2021 Mountain Migration Survey Year-round residents may not realize how good they have it when it comes to the quality of business services. Part-time residents who have perspective from using these services elsewhere rate all services, except for professional services, higher than full-time residents. While there has been much discussion and concern expressed in Colorado’s mountain towns about the availability of high-speed internet, it seems adequate among residents who have recently moved from other areas and part-time residents who also have perspective from elsewhere. At least it is adequate in the parts of the counties where newcomers are in-migrating. It was beyond the scope of this study to determine if as an equity issue it as was adequate in middle to lower-income full-time neighborhoods in these counties. Quality of Business Services Full- and Part-time Compared 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Airport shuttles Commercial flights Professional services Shipping/Fed Ex, UPS, USPS) High speed internet Average importance Rating: Scale from 1=not important to 5=very importantPart Time Full Time The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 58 #26 Source: 2021 Mountain Migration Survey There are no notable differences between full-time owners and renters. Nor were there many differences based on the source of employment – working for in-county versus out-of-county employers made little difference. Results were also very similar among the six counties except for the quality of commercial flights, which rated lower in in Grand County (no commercial airport) and San Miguel County (small aircraft in good weather). 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Commercial flights High speed internet Airport shuttles Shipping/Fed Ex, UPS, USPS) Professional services Average Quality: Scale from 1=poor to 5=excellentPart Time Full Time Source: 2021 Mountain Migration Survey Source: 2021 Mountain Migration Survey There were also few differences between full and part-time residents, except for professional services, which are more important to and used more often by full-time residents, and airport shuttles, which are more important to part-time residents. Year-round residents may not realize how good they have it when it comes to the quality of business services. Part- time residents who have perspective from using these services elsewhere rate all services, except for professional services, higher than full-time residents. While there has been much discussion and concern expressed in Colorado’s mountain towns about the availability of high-speed internet, it seems adequate among residents who have recently moved from other areas and part-time residents who also have perspective from elsewhere. It is adequate in the parts of these counties where newcomers are in-migrating. There are no notable differences between full-time owners and renters. Nor were there many differences based on the source of employment – working for in-county versus out-of-county employers made little difference. Results were also very similar among the six counties except for the quality of commercial flights, which rated lower in in Grand County (no commercial airport) and San Miguel County (small aircraft in good weather). July 6, 2021 - Page 99 of 210 The Mountain Migration Report • 2021 Home Services The influx of new residents will require more of the same services in about the same relative proportion. The frequency by which newcomers and long-timers used home services was very similar. USE OF HOME SERVICES Newcomers & Long-timers Compared USE OF HOME SERVICES Full & Part-time Compared The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 59 Home Services The influx of new residents will require more of the same services in about the same relative proportion. The frequency by which newcomers and long-timers use home services is very similar. Use of Home Services: Newcomers and Long-timers Compared Average rating where 1=never, 2=few times per year, 3=few times per month,4=weekly,5=daily #27 Source: 2021 Mountain Migration Survey Part-time residents more frequently use services related to maintenance, upkeep and care of their homes whereas full-time residents more often use child-related and pet care services. Full-time homeowners use all of the seven home services tested more than renters. Use of Home Services: Full and Part-time Compared 0.0 0.5 1.0 1.5 2.0 2.5 Administrative support Child care Pet sitter/dog walking Caretaker/housesitter Child education (homeschool, etc) Home cleaning/maintenance Landscaping maintenance/snow removal Longtimers Newcomers Source: 2021 Mountain Migration Survey Source: 2021 Mountain Migration Survey Average rating where 1=never, 2=few times per year, 3=few times per month, 4=weekly, 5=daily Average rating where 1=never, 2=few times per year, 3=few times per month, 4=weekly, 5=daily The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 60 Average rating where 1=never, 2=few times per year, 3=few times per month,4=weekly,5=daily #28 Source: 2021 Mountain Migration Survey Use of home services is similar among the six counties. Primary differences include: • Pitkin County residents more often use services related to home upkeep and are less likely to use home education services. • Summit County residents more often use landscaping services. Home Services Used by County 0.0 0.5 1.0 1.5 2.0 2.5 Caretaker/housesitter Administrative support Child care Pet sitter/dog walking Child education (homeschool, etc) Home cleaning/maintenance Part Time Full Time Part-time residents more frequently used services related to maintenance, upkeep and care of their homes whereas full-time residents more often use child-related and pet care services. Full-time homeowners used all of the seven home services tested more than renters. Services Needs & Preferences | 44July 6, 2021 - Page 100 of 210 The Mountain Migration Report • 2021 Services Needs & Preferences | 45 Other Services When asked to write in other services used, most responses fell into the following categories: • Grocery stores with comments focusing on need for additional and lower cost stores • Home maintenance and repair • Snow removal • Restaurants and food/restaurant delivery • Cell phones, with remarks about poor/worsening coverage in Summit County • Home health care • Wellness and spa services • Veterinary and pet care services • Property management • Auto repair • Law enforcement with protection of homes and cars in parking lots HOME SERVICES USED BY COUNTY The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 61 #29 Source: 2021 Mountain Migration Survey Other Services When asked to write in other services used, most responses fell into the following categories: • Grocery stores with comments focusing on need for additional and lower cost stores • Home maintenance and repair • Snow removal • Restaurants and food/restaurant delivery 0.00 0.50 1.00 1.50 2.00 2.50 3.00 Child care Child edu c ati o n ( h o m e s c h o ol, et c) Home cle a ni n g / m ai nt e n a n c e Landscapi n g m ai nt e n a n c e / s n o w r e m o v al Administr ati v e s u p p o rt Caretake r / h o u s e sitt e r Pet sitter / d o g w al ki n g Other Eagle Grand Pitkin Routt San Miguel SummitSource: 2021 Mountain Migration Survey Use of home services is similar among the six counties. Primary differences include: • Pitkin County residents more often use services related to home upkeep and are less likely to use home education services. • Summit County residents more often use landscaping services. July 6, 2021 - Page 101 of 210 The Mountain Migration Report • 2021 7QUALITY OF LIFE July 6, 2021 - Page 102 of 210 The Mountain Migration Report • 2021 Quality of Life | 47 With currently only 50% of housing units in the study area being occupied by full-time residents, the influx of more owners and visitors staying in part-time homes and short- and mid-term accommodations can, in theory, allow the population in the area to double overnight. This does not include visitors that may be in commercial (hotel) lodging units. When stays were extended over longer periods of time during COVID, the stress on the community and infrastructure was felt by all, as indicated in this section. Factors Influencing Community Choice Safety and security, sense of community, and skiing quality and/or access topped the list in importance overall when choosing where to live among nine attributes offered. There was little difference between long-timers and newcomers; however, the size of community and the quality of/access to the backcountry were more important to long-time residents. COMMUNITY ATTRIBUTES BY LENGTH OF RESIDENCY COMMUNITY ATTRIBUTES FULL VS PART-TIME There are clear distinctions between full-time and part-time residents which should be considered when preserving characteristics valued by each group. When choosing where to live, full-time residents placed greater importance on the sense of community, the size of community, and the cost of housing. Part-timers cared more about skiing, proximity to the Front Range, proximity to an airport, and arts/entertainment/culture. The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 63 #30 Source: 2021 Mountain Migration Survey There are clear distinctions between full-time and part-time residents which should be considered when preserving characteristics valued by each group. When choosing where to live, full-time residents placed greater importance on the sense of community, the size of community, and the cost of housing. Part-timers cared more about skiing, proximity to the Front Range, proximity to an airport, and arts/entertainment/culture. Community Attributes, Full vs Part-time 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Proxmity to Denver/the Front Range Proximity to airport Arts/music/entertainment/culture Cost of housing Backcountry - quality and/or access Size of community Skiing - quality and/or access Sense of community Safety/security Longtimers Newcomers The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 64 #31 Source: 2021 Mountain Migration Survey Full-time owners and renters were similar in the relative ranking they placed on community attributes when they chose where to live. In general, owners rated most considerations higher. One exception -- renters scored the cost of housing slightly higher than owners. Among part-time residents, renters ranked the cost of housing, safety/security, and proximity to an airport higher than owners. Ratings were similar among the six counties. Notable exceptions include: • Proximity to Denver/the Front Range were more important for residents in Grand and Summit counties. • Proximity to an airport was more important for Pitkin County residents. • While differences by county in the importance of the cost of housing were slight, it was most important for residents of Grand County, which has the lowest housing costs of the six counties, and least important in Pitkin County, where housing costs are the highest. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Proxmity to Denver/the Front Range Proximity to airport Arts/music/entertainment/culture Backcountry - quality and/or access Cost of housing Skiing - quality and/or access Size of community Safety/security Sense of community Part Time Full Time Source: 2021 Mountain Migration Survey Source: 2021 Mountain Migration Survey July 6, 2021 - Page 103 of 210 The Mountain Migration Report • 2021 Full-time owners and renters were similar in the relative ranking they placed on community attributes when they chose where to live. In general, owners rated most considerations higher. One exception – renters scored the cost of housing slightly higher than owners. Among part-time residents, renters ranked the cost of housing, safety/security, and proximity to an airport higher than owners. Ratings were similar among the six counties. Notable exceptions included: • Proximity to Denver/the Front Range were more important for residents in Grand and Summit counties. • Proximity to an airport was more important for Pitkin County residents. • While differences by county in the importance of the cost of housing were slight, it was most important for residents of Grand County, which has the lowest housing costs of the six counties, and least important in Pitkin County, where housing costs are the highest. Community Impacts in 2020 Since COVID, mountain residents noticed many changes in their communities. Far more residents perceived the changes to be more negative than positive. The perceptions about the impacts of this year provide a glimpse into the future of these communities, whether or not the current influx of new residents and part-time residents are here to stay. These communities have been discovered, and will continue to attract new residents. Learning from this experience and working to address the negative impacts can only better prepare these communities for what is on the horizon. As shown below, an overwhelming percentage of respondents felt that housing availability, housing affordability, and crowds in the backcountry were worse than before the migration began. About 50% of respondents felt that each of traffic congestion, environmental impacts, quality of life, and parking were worse. COMMUNITY ATTRIBUTES BY COUNTY Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 66 Community Attributes by County #32 Source: 2021 Mountain Migration Survey Community Impacts in 2020 Since COVID, mountain residents noticed many changes in their communities and far more residents perceived the changes to be more negative than positive. The perceptions about the impacts of this year provide a glimpse into the future of these communities, whether or not the current influx of new residents and part-time residents are here to stay. These communities have been discovered, and will continue to attract new residents. Learning from this experience and working to address the negative impacts can only better prepare these communities for what is on the horizon. As shown below, an overwhelming percentage of respondents felt that housing availability, housing affordability, and crowds in the backcountry were worse than before the migration began. About 50% of respondents felt that each of traffic congestion, environmental impacts, quality of life, and parking were worse. 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 Sense of c o m m u nit y Size of co m m u nit y Arts/musi c / e nt ert ai n m e nt / c ult ur e Skiing - q u alit y a n d / or a c c e s s Backcountr y - q u alit y a n d / or a c c e s s Cost of h o u si n g Safety/se c urit y Proxmity t o D e n v er /t h e Fr o nt R a n g e Proximity t o air p ort Eagle Grand Pitkin Routt San Miguel Summit Quality of Life | 48 Far more resident perceived the changes to be more negative than positive. July 6, 2021 - Page 104 of 210 The Mountain Migration Report • 2021 Findings suggest that now is the time for mountain communities to grow and improve their housing programs since community awareness of the problem is high. While 90% of respondents felt housing availability and housing affordability have gotten worse overall, as shown below, over 60% felt they got “much worse.” Full-time renters gave housing the highest “much worse” rating although all types of residents – full-time, part-time, new to the area and long time, felt the change in housing availability and affordability were worse than other changes in their counties. OBSERVED CHANGES IN 2020 OVERALL RATING OF MUCH WORSE Source: 2021 Mountain Migration Survey Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 68 Observed Changes in 2020 #33 Source: 2021 Mountain Migration Survey Findings suggest that now is the time for mountain communities to grow and improve their housing programs since community awareness of the problem is high. While 90% of respondents felt housing availability and housing affordability have gotten worse overall, as shown below, over 60% felt they got “much worse.” Full-time renters gave housing the highest “much worse” rating although all types of residents – full-time, part-time, new to the area and long time, felt the change in housing availability and affordability were worse than other changes in their counties. Overall Rating of Much Worse 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Housing availability Housing affordability Crowds in the back country Traffic congestion Environmental impacts Quality of life Parking% of respondents selectiing "somewhat sorse" or "much worse"Better No Change Worse The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 69 #34 Source: 2021 Mountain Migration Survey Perceptions about crowds in the backcountry were also so negative as to indicate actions to correct the problem (additional restrictions/limits on access and use) could have support among residents. The impacts of the migration on recreation are worthy of study, and are largely beyond the scope of this report. Long-time residents (>10 years) perceived changes to be worse than newcomers, which is not surprising given their greater knowledge about pre-2020 conditions. Long-time residents were much more likely to feel their quality of life had worsened. They were in close alignment, however, in their perceptions about housing affordability and availability regardless of when they moved to their mountain community. Worse in the Past Year 0%10%20%30%40%50%60%70% Quality of life Environmental impacts Parking Traffic congestion Crowds in the back country Housing affordability Housing availability % of respondents selecting "Much Worse" Commented [MB6]: This is an interesting and important finding! Quality of Life | 49July 6, 2021 - Page 105 of 210 The Mountain Migration Report • 2021 Perceptions about crowds in the backcountry were also so negative as to indicate actions to correct the problem (additional restrictions/limits on access and use) could have support among residents. The impacts of the migration on recreation are worthy of further study. Long-time residents (>10 years) perceived changes to be worse than newcomers, which is not surprising given their greater knowledge about pre-2020 conditions. Long-time residents were much more likely to feel their quality of life had worsened. They were in close alignment, however, in their perceptions about housing affordability and availability regardless of when they moved to their mountain community. Full-time residents were more likely than part-time residents to indicate that conditions had gotten much worse. Part-time residents more often noticed no change in the past year. Full-time owners and renters were generally comparable in terms of how they felt about changes in the past year. Residents among all six counties were similar in the factors they indicated had gotten worse – housing availability, housing affordability, and crowds in the backcountry were the top three concerns. Residents in Pitkin County, however, were less likely to indicate worsening among all factors, whereas San Miguel County residents noticed the highest overall level of negative change. WORSE IN THE PAST YEAR Source: 2021 Mountain Migration Survey WORSE BY COUNTY Source: 2021 Mountain Migration Survey The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 70 #35 Source: 2021 Mountain Migration Survey Full-time residents were more likely than part-time residents to indicate that conditions had gotten much worse. Part-time residents more often noticed no change in the past year. Full-time owners and renters were generally comparable in terms of how they felt about changes in the past year. Residents among all six counties were similar in the factors they indicated had gotten worse – housing availability, housing affordability, and crowds in the backcountry were the top three concerns. Residents in Pitkin County, however, were less likely to indicate worsening among all factors, whereas San Miguel County residents noticed the highest overall level of negative change. 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Environmental Impacts Traffic congestion Parking Housing affordability Housing availability Quality of life Crowds in the back country% of respondents selecting"somewhat worse " or "much worse"Newcomers Longtimers The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 71 Worse by County #36 Source: 2021 Mountain Migration Survey The survey also asked a write-in question, “Are there other changes you feel have occurred that affect your quality of life in the community? Nearly 1,900 responses were received in the following categories: • 742 related to crowds -- “too many visitors”, “too many people” and the impacts created by crowds throughout the community and back country. Numerous respondents commented on the behavior of visitors and newcomers, calling it rude, insensitive to locals, and disrespectful. • 542 about COVID that revealed much division on how the pandemic was managed. Some complained about masks mandates while others expressed concerns about how people, visitors especially, did not wear masks or practice social distancing. • 236 on housing, the cost of living and short-term rentals focused primarily on escalating housing costs, and the impacts of short-term rentals on rents and neighborhoods. • 91 about services, particularly the lack of availability and the high cost of groceries and lack of adequate childcare. • 60 on the environment with many expressing concerns about wildfire, especially the East Troublesome fire in Grand County, litter and damage in the backcountry, and an increase in dog waste. 0 10 20 30 40 50 60 70 80 90 100 Eagle Grand Pitkin Routt San Miguel Summit% of respondents selecting "somewhat worse" or "much worse"Environmental impacts Traffic congestion Parking Housing affordability Housing availability Quality of life Crowds in the back country Quality of Life | 50July 6, 2021 - Page 106 of 210 The Mountain Migration Report • 2021 Quality of Life | 51 The survey also asked a write-in question, “Are there other changes you feel have occurred that affect your quality of life in the community? Nearly 1,900* responses were received in the following categories: • 742 related to crowds -- “too many visitors”, “too many people” and the impacts created by crowds throughout the community and back country. Numerous respondents commented on the behavior of visitors and newcomers, calling it rude, insensitive to locals, and disrespectful. • 542 about COVID that revealed much division on how the pandemic was managed. Some complained about masks mandates while others expressed concerns about how people, visitors especially, did not wear masks or practice social distancing. • 236 on housing, the cost of living and short-term rentals focused primarily on escalating housing costs, and the impacts of short-term rentals on rents and neighborhoods. • 91 about services, particularly the lack of availability and the high cost of groceries and lack of adequate childcare. • 60 on the environment with many expressing concerns about wildfire, especially the East Troublesome fire in Grand County, litter and damage in the backcountry, and an increase in dog waste. • 200+ on government, development, jobs and how difficult it is to find employees, more traffic, increasing crime and health (lack of services and impacts of the pandemic on mental health). *Baseline data for this report is available upon request only to CAST and NWCCOG member jurisdictions. July 6, 2021 - Page 107 of 210 The Mountain Migration Report • 2021 8SUPPORT FOR COMMUNITY ORGANIZATIONS July 6, 2021 - Page 108 of 210 The Mountain Migration Report • 2021 Support for Community Organizations | 53 More residents spending time in their mountain towns should improve the financial stability of community organizations or the type of organizations that get financial support. The demographic shift may have other impacts on these organizations, especially those who address community-support needs. • Full-time residents support more community organizations than part-time residents with donations, volunteering time and attending events. While the dollar value of donations may be similar between full and part- time residents, spending more time in mountain communities should result in community organizations receiving more financial support. • The percentage of full-time residents that volunteer time far surpasses part-time residents, lending needed hands to help organizations undertake tasks and programs. In communities with a small full-time resident base, finding volunteer community participants is often a challenge. • Even though their incomes are lower, renters tend to support almost as many organizations as owners. Nonprofit and other community organizations need to reach out to newer residents for support. There is a clear relationship between the amount of support given and the length of residency. Long-term residents (> 10 years) donate to four times as many community organizations than newcomers, and also volunteer and attend more events. TYPE OF SUPPORT BY LENGTH OF RESIDENCY Source: 2021 Mountain Migration Survey Source: 2021 Mountain Migration Survey NUMBER OF ORGANIZATIONS SUPPORTED AVERAGE # SUPPORTED FULL-TIME PART-TIME Donations 3.4 1.6 Volunteering Time 1.6 0.3 Attendance at Events 3.1 1.7 % PROVIDING NO SUPPORT FULL-TIME PART-TIME Donations 16%32% Volunteering Time 33%81% Attendance at Events 19%36% The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 75 Type of Support by Length of Residency #37 Source: 2021 Mountain Migration Survey The near-term future looks good for community organizations. • About half of residents, both full and part-time, will continue to support at the same levels as in the past and roughly one- third will increase donations and/or volunteer time. • Newcomers, however, plan to increase both donations and volunteer time, indicating interest in investing more time and resources in their community. • Relatively few residents plan to decrease their support in the next two to three years; renters are more likely than owners to provide lower levels of support in the future. Support over the Next 2 to 3 Years Full-time Part- time Newcomers Long-timers Stay the same 50% 52% 26% 53% Increase donations 35% 43% 60% 34% - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Newcomers 1 to 5 years 6 to 10 years More than 10 yearsAverage number of local organizations supportedDonations Volunteering time Attendance at events July 6, 2021 - Page 109 of 210 The Mountain Migration Report • 2021 The near-term future looks good for community organizations. • About half of residents, both full and part-time, will continue to support at the same levels as in the past and roughly one-third will increase donations and/or volunteer time. • Newcomers, however, plan to increase both donations and volunteer time, indicating interest in investing more time and resources in their community. • Relatively few residents plan to decrease their support in the next two to three years; renters are more likely than owners to provide lower levels of support in the future. Support for community organizations varies by county. The number of organizations receiving support through donations and time are highest in Routt and San Miguel counties; attendance at events is highest in San Miguel County. Fewer organizations receive support on average in Grand and Summit counties. Source: 2021 Mountain Migration Survey*Multiple select question, meaning that percentages add to over 100% Source: 2021 Mountain Migration Survey SUPPORT OVER THE NEXT 2 TO 3 YEARS AVERAGE NUMBER OF ORGANIZATIONS SUPPORTED BY COUNTY FULL-TIME PART-TIME NEWCOMERS LONG-TIMERS Stay the same 50%52%26%53% Increase donations 35%43%60%34% Increase volunteer time 39%25%57%32% Decrease donations 4%1%2%4% Decrease volunteer time 3%1%1%3% EAGLE GRAND PITKIN ROUTT SAN MIGUEL SUMMIT Donations 3.1 2.2 3.2 4.1 3.7 2.5 Volunteering Time 1.4 1.1 1.2 1.5 1.7 1.2 Attendance at Events 2.9 2.1 2.7 2.9 4.1 2.5 Support for Community Organizations | 54July 6, 2021 - Page 110 of 210 The Mountain Migration Report • 2021 9SCHOOL ENROLLMENT July 6, 2021 - Page 111 of 210 The Mountain Migration Report • 2021 School Enrollment | 56 The K-12 education system in all counties in the study area underwent significant challenges and changes under the COVID pandemic, as did schools throughout the country. Many schools in the study area experienced a surge of inquiries into new enrollment and programs over the summer of 2020 from newcomers and from parents of existing students interested in COVID protocols, but most schools had actual fall enrollments that were lower than in 2019, primarily due to concerns about COVID transmissions. Being located in resort areas, most schools are used to a lot of in- and-out-migration of students at different times of the year, with part-time or new residents arriving and enrolled students moving or leaving. This year also had increased incidence of parents undertaking homeschooling or enrolling in online education programs from other schools, rather than enrolling locally, given the variety of options. Most schools in the study region implemented online learning platforms and hybrid online and classroom programs. A handful kept schools open for full-time classroom learning from the start. This section presents information on school enrollment by residents in the study area and planned enrollment for the next 2021/2022 school year. The scope of this study did not differentiate between school systems within the studied communities, or compare these to schools in the specific communities from which new residents came or in which some part-time residents enrolled their children. A number of the communities in the study area also have high- end private school options. The study did not differentiate between these and the public school system, but rather asked about public and private enrollment generally. For the most part, residents that are currently enrolled in local schools indicated that they will again enroll in 2021/2022, with many home-schooled children likely returning to the local school system. A few respondents remain undecided about future plans. Current School Enrollment About one-third of survey respondents had at least one school-aged child in their household. • Newcomers and full-time residents are similarly as likely to have children, but newcomers were more likely to have young children between 0 and pre-K. • Part-time residents that have children are likely to have older children. Newcomers and full-time residents are similarly as likely to have children, but newcomers were more likely to have young children between 0 and pre-K. July 6, 2021 - Page 112 of 210 The Mountain Migration Report • 2021 The near-term future looks good for school districts. Full-time residents are likely to enroll their children in local schools. Part-time residents are likely to enroll their children outside of the county. Newcomers have mixed enrollment. The vast majority of newcomers that have children enrolled locally are full-time residents. Newcomers with children enrolled outside of the county (29%) may be less likely to stay in the area. HOUSEHOLDS WITH CHILDREN BY RESIDENCY LOCATION OF K-12 SCHOOL ENROLLMENT BY RESIDENCY Source: 2021 Mountain Migration Survey • *Multiple select question, meaning that percentages add to over 100% Source: 2021 Mountain Migration Survey • *Multiple select question, meaning that percentages add to over 100% The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 79 Households With Children by Residency #38 Source: 2021 Mountain Migration Survey *Multiple select question, meaning that percentages add to over 100% Full-time residents are likely to enroll their children in local schools. Part-time residents are likely to enroll their children outside of the county. Newcomers have mixed enrollment. The vast majority of newcomers that have children enrolled locally are full-time residents. Newcomers with children enrolled outside of the county (29%) may be less likely to stay in the area. Location of K-12 School Enrollment by Residency 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% No Yes, age 0 through pre-K Yes, grade K-12 Newcomers Full Time Part Time The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 80 #39 Source: 2021 Mountain Migration Survey *Multiple select question, meaning that percentages add to over 100% Future School Enrollment Residents report little change in expected K-12 enrollment for 2021-2202. The slight decline in full-time resident enrollment is mostly due to students graduating or households moving out of the county. About 5% of residents are unsure about their plans. K-12 Enrollment Plans for 2021/2022 School Year by Residency 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Enrolled in a K-12 public school in the county Enrolled in a K-12 private or non-profit school in the county Home schooled Enrolled in a K-12 school outside of the county Newcomers Full Time Part Time School Enrollment | 57July 6, 2021 - Page 113 of 210 The Mountain Migration Report • 2021 School Enrollment | 58 Evaluating future enrollment plans by current enrollment status shows that: • Currently enrolled families will largely stay enrolled; • The majority of students that are home schooled will enroll locally; • A handful of out of county enrollees will enroll locally (10%); and • About 5% of residents are unsure. Residents with home schooled children are the most uncertain. K-12 ENROLLMENT PLANS FOR 2021/2022 SCHOOL YEAR BY RESIDENCY Source: 2021 Mountain Migration Survey • *Multiple select question, meaning that percentages add to over 100% Future School Enrollment Residents report little change in expected K-12 enrollment for 2021-2202. The slight decline in full-time resident enrollment is mostly due to students graduating or households moving out of the county. About 5% of residents are unsure about their plans. The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 81 #40 Source: 2021 Mountain Migration Survey *Multiple select question, meaning that percentages add to over 100% Evaluating future enrollment plans by current enrollment status shows that: • Currently enrolled families will largely stay enrolled; • The majority of students that are home schooled will enroll locally; • A handful of out of county enrollees will enroll locally (10%); and • About 5% of residents are unsure. Residents with home schooled children are the most uncertain. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes - public Yes - private or non-profit No Unsure Newcomers Full Time Part Time K-12 ENROLLMENT PLANS FOR 2021/2022 SCHOOL YEAR BY CURRENT ENROLLMENT STATUS Source: 2021 Mountain Migration Survey • *Multiple select question, meaning that percentages add to over 100% The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 82 K-12 Enrollment Plans for 2021/2022 School Year by Current Enrollment Status #41 Source: 2021 Mountain Migration Survey *Multiple select question, meaning that percentages add to over 100% The vast majority of families that are not enrolling their children locally or are unsure reported that they live elsewhere and will continue to do so, have children that are graduating from the K-12 system, and/or are moving out of the county (80%). Less common reasons include: • Concerns over the quality of education, including curriculum diversity and options, instruction methods, and quality of online programs offered (10%). • Preference for homeschooling in general (5%). • Frustration with COVID restrictions, mostly desiring classes to again be full-time, mask-free, and uninterrupted by quarantines (5%). Regarding pre-K enrollment plans for residents with younger children: • About three-fourths of full-time residents stated they will enroll their children in either a public or private/non-profit pre-K program. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes - public Yes - private or non-profit No Unsure Enrolled in county (public or private)Home schooled Enrolled outside of county July 6, 2021 - Page 114 of 210 The Mountain Migration Report • 2021 The vast majority of families that are not enrolling their children locally or are unsure reported that they live elsewhere and will continue to do so, have children that are graduating from the K-12 system, and/or are moving out of the county (80%). Less common reasons include: • Concerns over the quality of education, including curriculum diversity and options, instruction methods, and quality of online programs offered (10%). • Preference for homeschooling in general (5%). • Frustration with COVID restrictions, mostly desiring classes to again be full-time, mask-free, and uninterrupted by quarantines (5%). Regarding pre-K enrollment plans for residents with younger children: • About three-fourths of full-time residents stated they will enroll their children in either a public or private/non- profit pre-K program. • Newcomers were mixed and part-time residents were predominately not interested in local programs. • Respondents selecting “other” indicated that their children will be enrolled in kindergarten, day care, or home schooled, that they are still exploring options, or that they cannot find options locally. PRE-K ENROLLMENT PLANS FOR 2021/2022 SCHOOL YEAR BY RESIDENCY The Mountain Migration Report – May 2021 WSW Consulting; Rees Consulting 84 Pre-K Enrollment Plans for 2021/2022 School Year by Residency #42 Source: 2021 Mountain Migration Survey *Multiple select question, meaning that percentages add to over 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No Yes - a private or non-profit early childhood education center Yes - public pre-K education Other, please specify below Newcomers Full Time Part Time Source: 2021 Mountain Migration Survey*Multiple select question, meaning that percentages add to over 100% School Enrollment | 59July 6, 2021 - Page 115 of 210 The Mountain Migration Report • 2021 10NEXT STEPS July 6, 2021 - Page 116 of 210 The Mountain Migration Report • 2021 Next Steps | 61 Motivate to Take Action Together The impacts that amenity-rich mountain communities have felt from the recent COVID-accelerated migration is real. This report has shown significant impacts on housing availability and prices first and foremost, but also community services, outdoor recreation, and quality of life. Whether the changes felt now are here to stay, or will scale down before slowly ramping back up again, this past year has given the mountain communities a glimpse of the future. What is clear is that the impacts are not isolated to some communities over others. All mountain communities in this study experienced many of the same impacts at similar scales. With wide recognition of the shared impacts, now seems ripe for the mountain communities and regions to increase their capacity to work together and address common solutions. Through collective action on creative and bold initiatives it is hoped that observed and pending changes can be leveraged into positive opportunities for improvement. Much expertise exists across the study region in implementing local resident and employee housing programs; however, many communities recognize that more innovative tools are needed to address the mountain migration challenge. The below suggestions present a few ideas for strengthening some existing tools and exploring new options to effect the greater local, regional, and larger changes needed to address the mountain migration challenge. Collaborate on Larger Policy Changes Amenity-rich communities throughout the state should collaborate to change limiting federal and state of Colorado policies and statutes and open up more opportunities for communities to address impacts. STATE HOUSING FINANCING PROGRAMS Allow state resources to serve higher income households by increasing Area Median Income (AMI) thresholds. Current programs are limited primarily to households earning 80% or less of the area median income. Most households earning 200% AMI or more are now struggling to afford homes. SHORT-TERM RENTALS Tax residential units that are used as short-term rentals at the higher commercial property tax rate. Likewise, require short-term rentals to meet the same public safety standards as commercial hotel and lodge properties. REAL ESTATE TRANSFER TAXES Unlock a known tool for creating revenue from overheated real estate sales to mitigate the impacts. Allow municipalities and counties to adopt new real estate transfer taxes. This provides a significant and flexible source of revenue for communities to apply toward housing programs. This section presents several suggestions from the consultants, WSW Consulting, Inc. and Rees Consulting, Inc., for possible next steps. July 6, 2021 - Page 117 of 210 The Mountain Migration Report • 2021 VACANT HOME IMPACTS Generate additional revenue options for communities to address the shortage of housing for local residents and employees. Examples may include allowing a vacancy tax for homes that are underutilized and charging part time (second) homes a higher residential property tax rate than homes occupied as a primary residence. CONDOMINIUMS AND MIXED-USE Lobby to remove construction financing and buyer lending impediments on condominiums and mixed-use construction. Residential units above commercial in downtown areas help communities with limited land increase residential densities and provide options for workers to be near jobs. Condominiums provide more affordable home options, but only if purchasers can acquire loans. STATE OWNED LANDS Lobby the state to inventory all state public lands for housing suitability and make excess state land available for local resident and employee housing. Help connect the communities where suitable state lands are located with affordable housing developers to produce the housing needed by local residents and employees. Explore Local & Regional Actions Many tried and innovative tools exist and are used by various communities. Every community that is already involved in housing needs to review policies and be sure they are using every available tool as robustly as they can. Some suggestions to enhance community housing programs include: REGIONAL AND LOCAL PARTNERSHIPS • Develop regional partnerships that cooperatively allocate available resources for shared housing problems. • Optimize the efficient use of resources by reducing situations where multiple agencies provide the same housing services, particularly when they end up competing with each other. • Generate an environment where businesses, government, local and regional organizations, and the private sector can cooperatively work together and creatively address local resident and employee housing needs. LOCAL EMPLOYEE DEED RESTRICTIONS Include provisions in deed restrictions that permanently limit the occupancy of homes to persons who are employed by a local business or in a local position serving the community. This is especially important for deed restrictions that do not have income limits. The objective is to create a secondary real estate market of deed-restricted homes that are occupied as a primary residence by local employees, thereby eliminating the competition from higher-income out-of-area buyers. PURCHASE DEED RESTRICTIONS ON EXISTING HOMES Prepare a deed restriction purchase program with readiness to respond if opportunities arise. This means having funds available to purchase existing homes, then permanently deed restricting the homes for occupancy by local employees. This program recognizes that preserving existing homes for permanent resident occupancy is a necessary compliment to new construction in mountain communities to meet housing needs. Next Steps | 62July 6, 2021 - Page 118 of 210 The Mountain Migration Report • 2021 Next Steps | 63 ADOPT OR INCREASE RESIDENTIAL LINKAGE PROGRAMS Mitigate workforce housing demand generated by residential construction. This can be done through residential linkage programs, which require new construction to pay a fee, or build below market housing, to compensate for the housing needed by workers filling jobs demanded by new residences and their occupants. MID-TERM RENTALS Homes rented for one- up to five-months increased significantly during COVID and contributed to the highest increase in market rents ever experienced in Colorado mountain towns. Mid-term rentals, however, are not subject to short-term rental limitations that communities may have in place. Eliminate this loophole by addressing the mid-term leasing trend through permitting/licensing, taxation, and restrictions on the number and location of mid-term rentals similar to those imposed in some communities on short-term rentals. REALLOCATE FUNDS TO HOUSING Reallocate funds from other priorities, for example marketing and tourism promotion, to housing. This includes paying for employee housing out of enterprise funds for employees of those services. RENTAL HOUSING STOCK • Preserve existing and create new rental housing for local employees. • Take advantage of the recent passage of HB 21-1117 in May 2021 by adopting inclusionary zoning standards that require a portion of new or redeveloped rentals be priced affordable for local employees. BALLOT INITIATIVES Consider ballot initiatives to fund housing building upon the lessons learned in communities where taxes for housing have been approved in recent years. With the gap between market housing prices and the prices affordable for local wage earners now much wider than pre-COVID, additional sources of revenue are needed. CONSTRUCTION LABOR SHORTAGE Explore options for addressing the shortage in construction labor. Building homes affordable for the local workforce will be difficult to achieve even if funding for housing is significantly increased. Examples include: • Promoting vocational/technical education. • Creating apprenticeship programs. • Employing residential construction crews for housing construction and maintenance, such as through a housing authority. PUBLIC LANDS FOR LOCAL RESIDENT AND EMPLOYEE HOUSING • Communities and regions should review existing federal, state, and local public lands, including those owned by school districts, for housing suitability and conduct land swaps as needed to open up more developable land for housing. • Communities should purchase land, master plan to drive a vision, then seek partners to develop the property. July 6, 2021 - Page 119 of 210 The Mountain Migration Report • 2021 EMBRACE DENSITY FOR LOCAL EMPLOYEE HOUSING DEVELOPMENTS The development of housing for local residents and employees should no longer been seen as negotiable in the mountain communities severely impacted by the COVID migration. This includes negotiations that typically occur during the discretionary development approval process, too often resulting in fewer homes for local employees than zoning or land capacity allows, and sometimes halting projects altogether. Communities should evolve zoning and policies to reflect this necessity by, for example: • Allowing attached and multi-family homes in all residential zones. Some areas have banned single-family home zoning altogether (e.g., Oregon). • Ensuring accessory dwelling units (ADUs) are permitted in all zones, ideally with local employee occupancy requirements. Work with homeowner’s associations to ensure bylaws also permit ADUs. • Establishing permitted zoning densities and density bonuses that incentivize housing for local employees as by-right, rather than discretionary, standards. This means that if the proposed density is within established guidelines, then the density is approved; it is not a topic to be negotiated in the discretionary approval process. By-right will ideally be applied to other development design standards to streamline the review process and expedite approval. • Revisiting zoning density limits overall, either increasing permitted residential densities where appropriate, or providing increased density bonus incentives for projects providing local employee housing. • With any areas that are upzoned to higher densities, pair this with an inclusionary zoning requirement, which will ensure that a good portion of the new development will be permanently deed restricted for local employees. When completing comprehensive and land use plans to guide your community’s future: • Consider the shift toward more people working in homes and that relatively less office space will be necessary. • Recognize that significant increases in population are possible without additional new development when so many homes are used for part-time occupancy. • Commit to “housing as infrastructure” as a necessary component, like clean water and sanitation, for the health of any community. Defining housing for local employees as necessary infrastructure can help generate support for governments and others to be involved in and allocate monies toward housing in support of the public health, safety, and welfare. Better track the use and occupancy of homes by increasing the utilization of existing information. This information is invaluable to planning and community development departments to track progress and changes. Some suggested monitoring methods include: TRACK THE USE/OCCUPANCY OF RESIDENTIAL UNITS Systems could be created to continuously track residential use, possibly using a combination of Assessor data, rental licenses, changes in utility accounts, title company cooperation, visitor tracking services, and property manager assistance. Waiting for Census data to be released every 10 years and relying upon the American Community Survey in the interim is not adequate for understanding rapidly changing conditions and adjusting service delivery. Next Steps | 64July 6, 2021 - Page 120 of 210 The Mountain Migration Report • 2021 Next Steps | 65 UNDERSTAND POPULATION FLUCTUATIONS • Enhance water use/wastewater flow monitoring systems and data interpretation to continually measure the number of persons in the area. Communities can track water use and wastewater to monitor changes with little lag time. This will require most to enhance their tracking/billing systems to: • Easily distinguish between residential and commercial accounts; • Track consistently by category and adjust for any changes in tracking systems over time to ensure comparable results year-to-year; • Adjust for anomalies when they occur due to events like water line breaks, changing of meters, taking systems off line for improvements, garbage disposal use (for wastewater), etc. • Track changes in use by accounts when they change from one owner to another to understand changes in the use or occupancy of homes. Regarding the impacts of increased residency and visitation on public lands surrounding mountain communities: PUBLIC LANDS USAGE IMPACTS • Work with public lands managers who oversee USFS and BLM property surrounding mountain communities to mitigate the impacts from overcrowding at trailheads and in the backcountry. Institute permit systems, create remote parking/shuttle services (e.g., Maroon Bells), mobilize volunteers to supplement the work of employees, increase sanitation services (dumpsters, porta potties, dump stations), and implement a strong education campaign. July 6, 2021 - Page 121 of 210 The Mountain Migration Report • 2021 APPENDIX July 6, 2021 - Page 122 of 210 The Mountain Migration Report • 2021 Appendix | 67 ARE YOU CURRENTLY A FULL-TIME OR PART-TIME RESIDENT OF THE COUNTY? DO YOU OWN OR RENT YOUR HOME IN THE COUNTY? HOW MANY PEOPLE LIVE IN YOUR HOUSEHOLD? WITHIN WHICH AGE CATEGORIES DO HOUSEHOLD MEMBERS FALL? WHAT IS YOUR GROSS ANNUAL HOUSEHOLD INCOME? Part-time Resident Full-time Resident New-comers Long-timers TOTAL Respondents Full-time 0%100%65%79%76% Part-time 100%0%35%21%24% TOTAL 1,237 3,478 309 3,058 4,721 Part-time Resident Full-time Resident New-comers Long-timers TOTAL Respondents Own 97%84%69%92%87% Rent 2%15%28%7%12% Other 1%1%3%1%1% TOTAL 1,237 3,478 309.0 3,054 4,718 Part-time Resident Full-time Resident New-comers Long-timers TOTAL Respondents 1 7%11%7%11%10% 2 62%42%43%47%46% 3 9%19%18%17%17% 4 15%22%23%20%20% 5+7%6%10%5%6% TOTAL 1,210 3,443 306.0 3,010 4,663 Average 2.5 2.7 2.9 2.6 2.7 Part-time Resident Full-time Resident New-comers Long-timers TOTAL Respondents Under 18 20%38%39%33%33% 18 to 29 12%14%24%11%13% 30 to 64 66%80%86%73%76% 65 and over 44%24%6%36%29% TOTAL 1,206 3,444 306.0 3,008 4,662 Part-time Resident Full-time Resident New-comers Long-timers TOTAL Respondents Under $50,000 2%8%6%7%7% $50,000 to $99,999 6%24%12%20%20% $100,000 to $149,999 10%27%14%25%23% $150,000 to $199,999 13%17%15%17%16% $200,000 to $299,999 16%12%18%12%13% Demographic Profile of Survey Respondents July 6, 2021 - Page 123 of 210 The Mountain Migration Report • 2021 Acknowledgments On behalf of NWCCOG, CAST, and the consultants, Wendy Sullivan (WSW Consulting, Inc.) and Melanie Rees (Rees Consulting, Inc.), we would like to thank all of those individuals who provided time and information, without whom this research would not have been possible. Information in this report relied on extensive participation from community members, jurisdictions, and representatives from each county in the study area, regional property managers, boards of REALTORS® and their members, non-profits, community organizations, school districts, water and utility service providers, chambers of commerce, tourism districts, and of course the over 4,700 community members that gave their time to complete the resident survey. We also extend special thanks to our advisory group which provided valuable input on the structure of each component of the project. NWCCOG would like to thank their Council for supporting the concept, and each of the key funding partners to the project: CAST, DOLA and EDA. COUNTY ADVISORY GROUP REPRESENTATIVES Kim Bell Williams • Eagle County Housing and Development Authority, Director Ellen Sassano • Pitkin County, Senior Long Range Planner Kathi Meyer • Steamboat Springs City Council Member, District II Amy Priegel • Summit Combined Housing Authority, Executive Director Tamara Pogue • Summit County Commissioner Lars Carlson • Telluride Town Council Member, Real estate agent Keith Riesberg • Winter Park, Town Manager Introduction | 68July 6, 2021 - Page 124 of 210 The Mountain Migration Report • 2021 Introduction | 69 REAL ESTATE AGENTS – FOCUS GROUP Betsy Laughlin, Eagle County Kristie DeLay, Grand County Deb Brynoff, Grand County Ashley Chod, Pitkin County John Wade, Routt County Doug Labor, Routt County Lars Carlson, San Miguel County Todd Rankin, Summit County BOARDS OF REALTORS® Vail Board of REALTORS®, Eagle County Grand County Board of REALTORS®, Grand County Aspen Board of REALTORS®, Pitkin County Steamboat Springs Board of REALTORS®, Routt County Telluride Association of REALTORS®, San Miguel County Summit REALTORS®, Summit County WATER PROVIDERS Eagle River Water and Sanitation District, Eagle County Grand County Water & San District #1, Grand County Winter Park Water & San District, Grand County Upper Valley Wastewater Treatment Plant, Grand County City of Aspen Water Department, Pitkin County Aspen Consolidated Sanitation District, Pitkin County City of Steamboat, Public Works, Routt County Mt. Werner Water and Sanitation, Routt County Town of Breckenridge Water, Summit County Upper Blue Sanitation District, Summit County CHAMBERS & TOURISM DISTRICTS Vail Valley Partnership, Eagle County Steamboat Springs Chamber, Routt County Telluride Tourism Board, San Miguel County Summit Chamber of Commerce, Summit County Breckenridge Grand Vacations, Summit County SCHOOL DISTRICTS Eagle Schools, Eagle County East Grand Schools, Grand County Aspen School District, Pitkin County Steamboat Springs School District, Routt County Telluride Schools, San Miguel County Summit Schools, Summit County NON-PROFITS & OTHER ORGANIZATIONS Grand Foundation, Grand County Summit Foundation, Summit County St. Anthony Summit Medical Center, Summit County Family & Intercultural Resource Center, Summit County Telluride Arts District, San Miguel County Telluride Foundation, San Miguel County Aspen Center for Environmental Studies, Pitkin County Aspen Institute, Pitkin County Aspen Music Festival and School, Pitkin County United Way, Routt County DESTIMETRICS VISITOR DATA COMPILATION Tom Foley, Inntopia Business Intelligence INTERVIEWS, SURVEY OUTREACH ASSISTANCE, & LOCAL DATA SUPPORT July 6, 2021 - Page 125 of 210 The Mountain Migration Report • 2021 NWCCOG .org • 970.468.0295 • P.O. Box 2308 • Silverthorne, CO 80498 COSKITOWNS.COM • P.O. Box 3823 • Dillon, CO 80435 For PDF copies of this report visit nwccog.org or coskitowns.com, to request hard copies contact office@nwccog.org. ALPINE AREA AGENCY ON AGING July 6, 2021 - Page 126 of 210 VAIL LOCAL HOUSING AUTHORITY 2021 SEMI-ANNUAL HOUSING UPDATE JULY 6, 2021 July 6, 2021 - Page 127 of 210 VAIL LOCAL HOUSING AUTHORITY Steve Lindstrom, Chairman Mary McDougall Greg Moffet Molly Morales James Wilkins July 6, 2021 - Page 128 of 210 MEASURING HOUSING Completed Actions Identified in the Vail Housing 2027 Strategic Plan Deed Restriction Acquisition Evaluate dedicated deed-restriction acquisition revenue sources to ensure adequate funding exists –ongoing Implementing the Vail InDEED program –19 total applications processed in 2021 of which 15 were approved for purchase (79%) Facilitated the acquisition of a total of 10 new deed restrictions in Year 2021 Land Use Tools Performance Measurements July 6, 2021 - Page 129 of 210 MEASURING HOUSING Completed Actions Identified in the Vail Town Council 2018 -2020 Action Plan Actively pursuing regional collaboration and partnerships toward increasing the supply of housing within Vail and the region in keeping with the 2018 Housing Policy Statements (Alternate Housing Sites Initiative, CDoT Parcel, Eagle-Vail Parcel, Maliot Park, Avon Deed Restriction Purchase Program) –ongoing Convene the Vail Housing Subcommittee (meets monthly) –ongoing July 6, 2021 - Page 130 of 210 2021 INITIATIVES AND ACTIONS Vail InDEED program implementations and acquisitions -$2.5M funded 2021, plus rollover from 2020 Update existing deed-restricted property data base –$10K funded Update and amend the fee in lieu calculation to represent cost of construction and adoption of residential linkage –to be complete in third quarter of 2021 Create a Housing Overlay District that allows for increased density –in-house Evaluate the effectiveness of the EHU Exchange Program and adjust as needed –in-house Evaluate potential housing development sites within the Town of Vail and down valley –in-house and $30K funded Leading the seven-step alternative housing sites initiative aimed at achieving multiple Town adopted housing and environmental stewardship goals –five -year plan for action –ongoing July 6, 2021 - Page 131 of 210 2021 INITIATIVES AND ACTIONS Overseeing the adoption of a final development agreement with Triumph Development for Lot 3, Middle Creek and Timber Ridge Village Apartments -ongoing Facilitating the entitlement process for residential development on Lot 3, Middle Creek –completed Engaged in preliminary discussions with regional partners on potential future housing development sites both in town and down valley -ongoing Launched an internal Town Employee home purchase program including the sale of the first home within the program at B212, Homestake at Vail Condominiums. Since inception four additional homes has been acquired (5137 Black Gore Drive, Altair Vail Inn, Vail Heights and Brooktree C113) -completed Facilitated the sale of two Chamonix Vail Townhomes at 2387 and 2373 Lower Traverse Way Implementation and advancement of the 2018 Housing Policy Statements -ongoing Active participation with the Vail Local Housing Authority in the formulation of the West Vail Master Plan, Housing Element – ongoing July 6, 2021 - Page 132 of 210 2021 VAIL INDEED YTD 8 Homes Total Dollar Amount Funded for Investment in 2021: $607,635 ($2,500,000 Appropriated) ($1,882,354 remaining balances of 6/30/2021) Total Dollar Amount Invested YTD 2021: $607,635 Total Offer Pending: six totaling $635,400 as of 6/30/2021 Estimated Total Number of Vail Residents Provided Housing in 2021: 28 residents July 6, 2021 - Page 133 of 210 MAKING PROGRESS: VAIL HOUSING 2027 STRATEGIC PLAN GOAL TO ACQUIRE 1,000 NEW DEED RESTRICTIONS BY THE YEAR 2027 Since the adoption of the Vail Housing 2027 Strategic Plan, as of December 22, 2020, the Town of Vail, in collaboration with the Vail Local Housing Authority, has increased the total number of recorded deed restrictions by 35.4 % to 932 (+244). At the current rate of acquisition, it is projected the Town will reach the housing goal by the 2026. The Residences at Main Vail under way. July 6, 2021 - Page 134 of 210 MAKING PROGRESS…AND PLATEAUING July 6, 2021 - Page 135 of 210 WHAT’S NOT UNDER WAY? WHY DID WE MISS THESE OPPORTUNITIES? The former Roost development site July 6, 2021 - Page 136 of 210 WHAT’S NOT UNDER WAY? WHY DID WE MISS THESE OPPORTUNITIES? Highline, a DoubleTree by Hilton July 6, 2021 - Page 137 of 210 WHAT’S NOT UNDER WAY? WHY DID WE MISS THESE OPPORTUNITIES? Residences at Main Vail July 6, 2021 - Page 138 of 210 WHAT’S NOT UNDER WAY? WHY DID WE MISS THESE OPPORTUNITIES? West Middle Creek site July 6, 2021 - Page 139 of 210 WHAT’S NOT UNDER WAY? WHY DID WE MISS THESE OPPORTUNITIES? Cascade Tennis Courts (housing plus potential Children’s Garden of Learning replacement site) July 6, 2021 - Page 140 of 210 WHAT WE’RE HEARING Put eggs in the West Vail master planning basket Pursue housing west of Dowd Junction July 6, 2021 - Page 141 of 210 WHAT YOUR VAIL LOCAL HOUSING AUTHORITY WANTS TO GET DONE BREAKING DOWN BARRIERS AND GETTING TO A CULTURE OF ‘YES’ July 6, 2021 - Page 142 of 210 HOUSING IS INFRASTRUCTURE July 6, 2021 - Page 143 of 210 HOUSING PARTNERS PRIVATE SECTOR IMPORTANCE BREAK DOWN BARRIERS PEOPLE PROMOTE COMMUNITY July 6, 2021 - Page 144 of 210 WHAT WILL IT TAKE TO LOOK FORWARD? July 6, 2021 - Page 145 of 210 OUR INSPIRATION “I knew there was only one way –work at it.” Pete Seibert, Vail: The Triumph of a Dream Vail’s New Dawn July 6, 2021 - Page 146 of 210 WHAT WE ARE LOOKING FOR FROM VAIL TOWN COUNCIL Direct Town Manager to bring forward West Middle Creek proposal Direct Town Manager to initiate discussion/negotiation with Cascade Tennis Courts site developer to form public- private partnership to develop July 6, 2021 - Page 147 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : Update on Voter Opinion S urvey Regarding Housing and Year-Round Marketing I nitiatives P RE S E NT E R(S ): Patty McKenny, Assistant Town Manager and D avid F laherty, Magellan S trategies AC T IO N RE Q UE S T E D O F C O UNC IL : R eview and provide direction on funding options to test in upcoming voter opinion survey B AC K G RO UND: T he Town of Vail has engaged Magellan S trategies and Summit I nf o S ervices to assist in facilitating community outreach meetings to gather feedback and opinions about the town’s housing and marketing ef f orts. T he f indings, which were presented to Town C ouncil on J une 1, are being used to develop a voter opinion survey to test reaction to various funding scenarios to help determine whether to include related taxing questions as part of the Vail Municipal E lection in November which will be coordinated with E agle County. AT TAC H ME N TS : Description Memo Presentation July 6, 2021 - Page 148 of 210 To: Vail Town Council From: Patty McKenny, Assistant Town Manager Kathleen Halloran, Finance Director George Ruther, Housing Director Mia Vlaar, Economic Development Director Date: July 6, 2021 Subject: Discussion of Voter Opinion Survey Regarding Housing and Year-Round Marketing Initiatives I. BACKGROUND The Town of Vail has engaged Magellan Strategies and Summit Info Services to assist in facilitating community outreach meetings to gather feedback and opinions about the town’s housing and marketing efforts as well as opportunities to address additional funding sources. Initial findings were presented to Town Council on June 1, 2021 and yielded important insights and opinions. Overall, support for the town’s direction and general plans for year-round marketing was strong. Although there are different opinions about funding solutions, mostly about housing, there is unanimous, widespread support for the town’s effort to address these critical issues. 6-1-21 Town Council Presentation Messages that have resonated most strongly during the outreach meetings include the following: Housing • The shortage of long-term rental and homeownership opportunities in the Vail community is a public crisis. This housing crisis is eroding the quality of life in Vail. It is limiting and reducing the number of restaurants, shops, bars, and small businesses in the community. The housing crisis is driving Vail’s highly trained, experienced, and valued workforce to other mountain resort communities. • Over the past several years the Vail Town Council and the Vail Local Housing Authority have had success providing long-term rental and homeownership housing opportunities for Vail residents. These successes include Chamonix Vail Townhomes, Vail InDeed, 6 West Apartments, Residences at Main Vail, Solar Vail Apartments, and future housing at the Town Shops. A dedicated funding source will help the town achieve more housing successes like these. • For the past several years the Town of Vail has allocated approximately $5 million annually to fund housing initiatives, developments, and programs. The money for these housing initiatives has come from the Town’s general fund and development mitigation fees. Although the financial need to address the housing crisis is astronomical, a dedicated funding source will help implement solutions. July 6, 2021 - Page 149 of 210 Town of Vail Page 2 • If the housing crisis is not addressed, Vail’s community, businesses, and quality of life will suffer. Great people make a great community, and our teachers, firefighters, police officers, and health care professionals need places to live. So does top talent in the retail, hospitality, and restaurant industry. A dedicated funding source for housing will help ensure Vail’s community and quality of life is sustained. Marketing • The Town of Vail faces intense competition for tourism dollars from other mountain resort communities during the winter season, not only during the summer season. Therefore, the Town’s plan for a year-round marketing effort is justified and needed. • Vail hotel occupancy rates have been flat for the past ten years and declined significantly in the two seasons before the coronavirus. An increase in the lodging tax will help the Town optimize occupancy on a year-round basis and support local businesses. • An increase in the lodging tax would allow for more marketing dollars to be available to increase tourism, especially during lower demand time periods, thereby boosting Vail’s local businesses and the job market year-round. II. VOTER OPINION SURVEY With support from Town Council, the consultant team has been preparing a voter opinion survey which will be distributed later this month to probe opinions from registered voters about the topics of housing and year-round marketing. David Flaherty from Magellan Strategies will lead a discussion with Town Council to review and determine funding options to be tested in the survey to help determine decisions about possible ballot questions for the Town of Vail Regular Election in November 2021. To date, no determinations have been made. These include: Possible Funding Options for Housing Solutions Option 1 – Sales Tax Increase A sales tax increase of 0.5% that is estimated to raise $3.5 million annually. Option 2 – Property Tax Increase A property tax increase of 1 mil that is estimated to raise $1.3 million annually. The 1 mil increase would cost a homeowner $290 a year annually on a home with an assessed value of $1 million. Option 3 – Construction Use Tax Increase A construction use tax increase of 1% from 4% to 5%. The 1% increase would generate approximately $500,000 annually and is assessed on construction projects with a valuation of over $10,000. The tax is assessed on 50% of the valuation, intended to be charged on purchases of materials, not labor costs. Option 4 – Short-Term Rental Tax A new tax on short-term rental properties, such as homes rented through Airbnb and VRBO, is being researched by staff. Alternatively, an annual fee on the short-term rentals could be assessed. Either source could generate approximately $1.5 million per year. An additional fee does not require voter approval. July 6, 2021 - Page 150 of 210 Town of Vail Page 3 Funding for Year-Round Marketing Option 1 – Lodging Tax Increase Increase the current lodging tax from 1.4% to 2.8%. The additional 1.4% lodging tax increase is estimated to raise $3.5 million annually for the purpose of year-round marketing. The current lodging tax funds marketing from May-October and is managed by the Vail Local Marketing District. Option 1+ – Lodging Tax Increase/Special Events Increase the current lodging tax from 1.4% to 3.6%. The additional lodging tax increase would include the year-round marketing described above plus provide an estimated $2 million per year for special events, which are currently allocated from the General Fund. III. NEXT STEPS Week of July 5 – Finalize survey Week of July 12 – Publicize and launch survey with 7-to 10-day data collection and related follow up Week of July 26 – Tabulate results August 3 – Presentation of results to Town Council IV. ACTION REQUESTED OF COUNCIL Review and provide direction on funding options to test in upcoming voter opinion survey. V. ATTACHMENTS Presentation July 6, 2021 - Page 151 of 210 Town of Vail | Finance | 7/6/2021 Vail Ballot | Survey Town of Vail is conducting a survey for a possible ballot issue this November: •Housing •Year-round marketing July 6, 2021 - Page 152 of 210 Town of Vail | Finance | 7/6/2021 Vail Ballot Survey | Housing Funding to address Vail’s housing crisis: Option #1: Sales tax increase of 0.5% would raise $3.5 million per year. Cost to public is 50 cents per $100 purchased. Option #2: A property tax increase of 1 mil would raise $1.3 million per year. Cost to homeowner is $290 per year on a home with assessed value of $1.0 million. Option #3: A 1% increase in the Construction Use Tax from 4% to 5%. The 1% increase would raise approximately $500,000 per year. This tax is charged on construction projects over $10,000, and is assessed on 50% of the project valuation. Option #4: A 5.0% tax or a fee on short term rentals would raise approx. $1.5 million annually. July 6, 2021 - Page 153 of 210 Town of Vail | Finance | 7/6/2021 Vail Ballot Survey | Marketing Funding to address the need for year-round marketing: Option #1: An increase to the current lodging tax from 1.4% to 2.8% would raise approximately $3.0 million annually. The additional tax would fund year-round marketing efforts as the current tax funds marketing efforts May –October. Option #1+: An increase to the current lodging tax from 1.4% to 3.6% would include the year-round marketing above, plus provide an estimated $2.0 million per year for special events funding which are currently allocated from the General Fund. July 6, 2021 - Page 154 of 210 Town of Vail | Finance | 7/6/2021 Vail Ballot Survey | Feedback Questions for Town Council: •What funding options to test in voter survey? July 6, 2021 - Page 155 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : E dwards Northstar Center P UD Amendment P RE S E NT E R(S ): C raig Cohn, Chief Real Estate D evelopment Officer, and C hris L indley, Chief P opulation Health Officer and Executive Director of Eagle Valley B ehavioral Health AC T IO N RE Q UE S T E D O F C O UNC IL : Town of Vail support of proposed Edwards Northstar Center P UD A mendment to Eagle County B oard of C ounty Commissioners B AC K G RO UND: Vail Health is proposing a comprehensive community health campus on the Northstar Center property it owns in Edwards, C olo. S erving those needing pediatric, adolescent and adult physical and oral healthcare. A short-term, inpatient behavioral health f acility would be a new building as a part of the campus, serving f ellow community members needing behavioral health care f ocused on the most common disorders: anxiety/depression disorders; mood disorders; family therapy; and substance use disorders. AT TAC H ME N TS : Description Community Pr esentation July 6, 2021 - Page 156 of 210 Edwards Northstar Center PUD Amendment Chris Lindley Chief Population Health Officer Executive Director of Eagle Valley Behavioral Health Craig Cohn Chief Real Estate Development Officer July 6, 2021 - Page 157 of 210 Comprehensive Community Health Campus ●Current community health tenants: ○United Way ○Outpatient Behavioral Health (CMM) ○Eagle Valley Behavioral Health offices ○All other existing leases honored in full ●Proposed Inpatient Behavioral Health Facility: ○Approval of 28-beds for short-term stabilization care ○Build out 14 beds on the second floor, with space to expand on the 3rd floor if needed ●Potential future tenants: ○Eagle County, Public Health ○Mountain Family Health Center ○Other health services ○Other community non-profits July 6, 2021 - Page 158 of 210 Inpatient Behavioral Health Facility 1st floor: ●Security desk, administrative offices, kitchen ●Social Detox (~500 sq. ft.): ○Voluntary; Individuals have not broken the law ○Not a drug rehabilitation facility ○Safe place to sober up ○Estimated less than 3 individuals per week ○Avg. length of stay less than 8 hours ○Discharged to family members or transported home 2nd Floor ●14 inpatient beds for those over 12 years old needing short-term stabilization ○M1 holds; Individuals in crisis ○Not a long-term mental health facility ○Avg. length of say 3-5 days ○Discharged to family members with a treatment plan in place 3rd Floor ●Available for expansion of patient beds or for future community health needs Not a drug rehabilitation facility or long-term mental health institution July 6, 2021 - Page 159 of 210 Commonly asked questions Traffic: ●Minimal increase in traffic ●Will use existing entrance/exit to campus ●No adverse effects on Spur Rd./roundabout Noise: ●Very minimal ongoing day/night noise as the facility is built to the highest inpatient standards ●No siren noise used during patient transport Lighting: ●Basic interior lighting and exterior down-lighting ●No ambulance lights used during transport Landscaping & Fencing: ●Expected evergreen and aspen landscaping ●No finalized plans for fencing July 6, 2021 - Page 160 of 210 ●Expand allowable land uses to emphasize health care ●Allows for development of new behavioral health facility ●Allows for future redevelopment/expansion of two existing buildings ●Set maximum size for future development that also accounts for utility/access support to match the future size PUD Amendment Requests July 6, 2021 - Page 161 of 210 Who will be using this campus? Children, Adolescents and Adults ●Anxiety / Depression (85%) ●Mood Disorders ●Family Therapy ●Substance Use 95% Community Members 5% Non-residents July 6, 2021 - Page 162 of 210 Why this location in Edwards? ●Centrally located in the Valley ●The largest population center in the County ●Easy access right off of I-70 ●Vehicle access and utilities are in place ●Currently zoned for commercial usage ●A currently developed site ●Vail Health owns the land July 6, 2021 - Page 163 of 210 Patient safety & security is our top priority ●24/7 facility lockdown ●24/7 security on-site ●Patients are transported to the facility by paramedics with no lights or sirens ●Every patient is pre-screened before being accepted into the facility (NO ED) ●Patients will not be walking around outside ●All patients will be released/discharged to a family member or caretaker ●All patients will leave with a care plan ●Seriously ill patients are cared for at the Vail Hospital ER and Intensive Care Unit ●Studies show a decrease in crime in areas with access to mental health facilities July 6, 2021 - Page 164 of 210 Questions, Answers, and Discussion July 6, 2021 - Page 165 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : Retail S pace C onversions-Policy Discussion P RE S E NT E R(S ): Erik Gates, Planner AC T IO N RE Q UE S T E D O F C O UNC IL : No action is requested of the Vail Town C ouncil for this item. B AC K G RO UND: D uring the J une 15, 2021 Town Council meeting, the C ouncil expressed concern over the loss of retail and other commercial space within Vail Village due to the conversion of these spaces to residential uses. T he Vail Town Council requested that S taff look into the past trends of commercial to residential conversions in the village in order to help f acilitate a policy discussion. S TAF F RE C O M M E ND AT I O N: Discussion only, no action recommended. AT TAC H ME N TS : Description Commercial to R esidential C onversions Staff Memorandum [Attachment A] Maps of C onversion Locations July 6, 2021 - Page 166 of 210 TO: Vail Town Council FROM: Community Development Department DATE: July 6, 2021 SUBJECT: Commercial to Residential Conversions Within Vail Village I. SUMMARY During the June 15, 2021 Town Council meeting, the Council expressed concern over the loss of retail and other commercial space within Vail Village due to the conversion of these spaces to residential uses. The Vail Town Council requested that Staff look into the past trends of commercial to residential conversions in the village in order to help facilitate a policy discussion at the next regularly scheduled Town Council meeting. II. ZONING ANALYSIS Within Vail Village there are four (4) commercial zone districts, these are: Public Accommodation (PA), Commercial Core 1 (CC1), Commercial Core 2 (CC2), and Commercial Service Center (CSC). None of these zone districts allow single-family or two-family residential uses. The Public Accommodation (PA) zone district does not allow multi-family uses and instead only allows residential units as part of a lodge. As defined in the Vail Town Code, lodges require that less than 30% of the total GRFA on site be devoted to dwelling units, thereby significantly limiting the amount of residential possible for this use. The Commercial Core 1 (CC1) and Commercial Core 2 (CC2) zone districts account for the highest number of lots within Vail Village and have the same residential use allowances. Both districts allow lodges as a permitted use on all floors. Both districts also allow multi-family as a permitted use on the second floor and above and as a conditional use on the basement level, essentially removing residential uses from the street and pedestrian level. The Commercial Service Center (CSC) zone district allows lodges and multi-family residential uses, but only as conditional uses meaning these would require specific review from the Planning and Environmental Commission. July 6, 2021 - Page 167 of 210 Town of Vail Page 2 In addition, while a special development district (SDD) can modify the required development standards on a lot or lots, the permitted, conditional, and accessory uses of any SDD are limited to those allowed by the underlying zone district. Finally, the Vail Village Master Plan emphasizes the intention for commercial uses to be the primary activity on the street level. Policy 2.4.1, states: “Commercial infill development consistent with established horizontal zoning regulations shall be encouraged to provide activity generators, accessible greenspaces, public plazas, and streetscape improvements to the pedestrian network throughout the Village.” The horizontal zoning regulations referenced in this policy are reflected in the Commercial Core 1 & 2 zone districts which, with the exception of lodge and EHU uses, only allow retail and restaurant as permitted uses on the street level. III. BACKGROUND Staff has conducted a search of past development applications and public board approvals for properties within the Vail Village area. While the quality of these records is not always perfect the further back in time one looks, it is apparent that commercial to residential conversions are rare. Only 4 of these conversions could be identified, with all 4 of them being found within SDD #6, Vail Village Inn. The approximate location of these conversions can be found on the map provided in Attachment A. In 1989, the Vail Village Plaza Condos converted a unit primarily on the second and third floors from commercial to residential. In 2003, 700 square feet of restaurant space along with 1,432 square feet of new GRFA was turned into a residential unit all on the second floor of the Vail Village Plaza Condos. This appears to have only been a reduction in commercial restaurant space previously used by the Alpenrose, and not the conversion of an entire commercial unit. In 2005, Unit 29 and a portion of Unit 17 in the Vail Village Plaza Condos was converted from a retail use to a residential unit. The only first floor residential use was an entryway accessed on the northeast end of the building. In 2008, a portion of Unit 602 in the Village Inn Plaza, located in the northeast corner of the front building, was converted into additional residential space. As part of this approval, Council required a deed restriction and the installation of an accessibility lift near Osaki’s. Finally, there are occasions where a commercial use has been replaced by a mix of commercial and residential uses as part of a redevelopment. An example of this can be seen with the replacement of a gas station with the Vail Gateway building. July 6, 2021 - Page 168 of 210 Town of Vail Page 3 However, as these redevelopments ultimately result in an increase of commercial units, they were ignored for the purposes of this discussion. III. ACTION REQUESTED No action is requested or required on the part of the Town Council as part of this discussion. IV. ATTACHMENTS A. Maps of Conversion Locations July 6, 2021 - Page 169 of 210 Last Modified: June 30, 2021 This map was created by the Town of Vail Community Development Department. Use of this map should be for general purposes only. The Town of Vail Does not warrant the accuracy of the information contained herein. (where shown, parcel line work is approximate) Vail Village Overview Approximate Conversion Locations July 6, 2021 - Page 170 of 210 Last Modified: June 30, 2021 This map was created by the Town of Vail Community Development Department. Use of this map should be for general purposes only. The Town of Vail Does not warrant the accuracy of the information contained herein. (where shown, parcel line work is approximate) Vail Village Zoning July 6, 2021 - Page 171 of 210 Last Modified: June 30, 2021 This map was created by the Town of Vail Community Development Department. Use of this map should be for general purposes only. The Town of Vail Does not warrant the accuracy of the information contained herein. (where shown, parcel line work is approximate) Vail Village Inn Approximate Conversion Locations July 6, 2021 - Page 172 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : Commercial S ki S torage P olicy D iscussion P RE S E NT E R(S ): J onathan Spence, P lanning Manager AC T IO N RE Q UE S T E D O F C O UNC IL : L isten to presentation and ask questions. B AC K G RO UND: T he purpose of this work session is to update the Vail Town C ouncil regarding the Town’s policy concerning the regulation of commercial ski storage, ski valet and ski concierge services. S TAF F RE C O M M E ND AT I O N: P rovide f eedback. AT TAC H ME N TS : Description Staff Memor andum July 6, 2021 - Page 173 of 210 TO: Vail Town Council FROM: Community Development Department DATE: July 6, 2021 SUBJECT: Commercial Ski Storage Work Session I. PURPOSE The purpose of this worksession is to update the Vail Town Council regarding the Town’s policy concerning the regulation of commercial ski storage, ski valet and ski concierge services. Staff has encouraged a policy that is focused on the following elements: • Guest Service consistent with the Vail brand; • Considerate to existing and future business models; • Considerate of the aesthetic expectations of our guests and residents; • Considerate of pedestrian and vehicular safety; and • A policy that is fair, consistent, understandable and easily enforceable. In 2018 staff worked with Jeff Babb of Vail Resorts and Alison Wadey of the Vail Chamber and Business Association to complete minor amendments to the Vail Town Code that further facilitated the elements of the policy. The Town have also worked previously with a group of ski shop owners and managers to obtain input on the issues relating to ski storage. The purpose of the amendments was to: • Provide further clarification as to what is, and is not, considered commercial ski storage; and • A clarification regarding ski storage that is part of a lodge or dwelling unit. It is our belief that those changes, although minor, provided the needed clarifications regarding what does and does not constitute commercial ski storage while allowing the continuation of services consistent with guest expectations and the Vail brand. July 6, 2021 - Page 174 of 210 Town of Vail Page 2 II. BACKGROUND On August 1, 2017, the Community Development Department presented a report to the Town Council on Commercial Ski Storage to engage the Council in a discussion regarding the Town’s policy concerning commercial ski storage, ski valet and ski concierge services. At the end of the discussion, Town Council supported the creation of a Task Force consisting of business owners and managers in Vail’s ski and lodging industry, and Town staff. The mission of the Task Force was to study this issue in greater detail, and provide feedback to the Town Council on amendments that may be needed to the Town’s current regulations. Fourteen members of the local ski and lodging industry signed up for the Task Force, and several others contacted the Community Development Department after the August 1, 2017 meeting, expressing interest in participating. Following are members of the Task Force that attended at least one of these meetings: Chris Cremer Intrawest / Ski Haus Jeff Evans Christy Sports Jeff Babb Vail Resorts Marco Valenti Vail Resorts Retail Scott Gubrud Four Seasons Brent Martin Four Seasons Jacob Bangston Sebastian Base Camp Jay Lucas Ski Base Tom Neyens Ski Valet Zack Meyers Arrabelle Tom Higgins American Ski Exchange Chris Howe Ski Butlers / Antlers Alison Wadey Vail Chamber and Business Association Jenn Bruno Vail Town Council Kevin Foley Vail Town Council Task Force meetings were held on August 18, August 23, and August 25, 2017. Based on input from the Task Force at these meetings, and tours of the some of the participating businesses, the Community Development Department and the Task Force developed recommendations for the Town Council to consider. On September 5, 2017, the Community Development Department and Task Force presented their recommendations to the Town Council. The Town Council supported the recommendations, and directed staff to begin to draft text amendments to implement the changes. On September 11, 2017, the Community Development Department presented the Commercial Ski Storage Task Force’s recommendations to the PEC. The PEC requested more time to review specific code language, and requested that this topic return for further discussion. July 6, 2021 - Page 175 of 210 Town of Vail Page 3 On September 25, 2017, the Community Development Department presented the Commercial Ski Storage Task Force’s recommendations to the PEC. The PEC requested site visits to several of the ski shops, ski valet services and ski clubs impacted by these regulations. A tour of these properties was scheduled for October 9, 2017 as part of the PEC meeting. On October 9, 2017 the Planning and Environmental Commission further reviewed the proposed recommendations of the Task Force, expressing concerns with the proposed changes and possible unintended consequences, particularly as related to expanding allowable commercial ski storage to building levels other than the basement/garden levels and the placement of ski racks within pedestrian or other established easements. III. RECENTLY ADOPTED CODE LANGUAGE Based upon the concerns expressed by the PEC and in further discussions and coordination with the Vail Resorts and the Vail Chamber and Business Association, a decision was made not to expand permitted locations for commercial ski storage and to not codify the relationship between ski racks and pedestrian or other easements. This decision reflected considerable concerns related to the unintended consequences of expanding allowable locations for commercial ski storage and the business community’s long reliance on the existing regulations. It was determined that the use of existing regulations related to Outdoor Storage and the examination of any conflicting easements was best done on an individual basis. In an effort to provide the community, retailers and code enforcement with a better understanding of what does and does not constitute commercial ski storage, staff, Vail Resorts and the Vail Chamber and Business Association recommend the following additional language be added to the definition section (Section 12-2-2) of the Vail Town Code. This additional language was approved and codified by the Town Council via Ordinance 14, Series of 2018. New language enacted is shown in bold, below. COMMERCIAL SKI STORAGE/SKI CLUB: Storage for equipment (skis, snowboards, boots and poles) and/or clothing used in skiing related sports, which is available to the public or members, operated by a business, club or government organization, and where a fee is charged for hourly, daily, monthly, seasonal or annual usage. This use may have, but does not require, the following components: A. Personal lockers, B. Boot dryers, C. Ski storage racks, D. Ski tuning, July 6, 2021 - Page 176 of 210 Town of Vail Page 4 E. Food and beverage service, F. Areas for congregation and/or socializing, G. Restrooms and/or shower facilities, H. Nonwinter activities, I. Concierge ski services, J. Retail sales, K. Business center. Ski storage that is part of a lodge, or dwelling unit, in which a fee is not charged and is located within the lodge or dwelling unit, is not considered commercial ski storage/ski club. The following activities, when accessory to a retail operation, shall not be considered ski storage: A. The outdoor display of skis or skiing related equipment that is available for sale, available for rent, rented or recently serviced. Outdoor display is subject to requirements of Section 12-14-21: OUTDOOR DISPLAY OF GOODS. B. The indoor storage, on levels of a building other than the basement or garden level, of skis or skiing related equipment that is available for sale, available for rent, rented from the same business or recently serviced. IV. EXISTING LOCATIONS WHERE ALLOWED Commercial Ski Storage/Ski Clubs is a regulated use in the Town of Vail that is permitted only in the basement or garden level and only in the following zone districts: • Commercial Core 1 • Lionshead Mixed Use 1 • Lionshead Mixed Use 2 • Ski Base /Recreation 2 And shown on the map below: July 6, 2021 - Page 177 of 210 Town of Vail Page 5 V. NEXT STEPS Following the worksession with the Town Council, staff will follow up with any requests for additional information or action concerning Commercial Ski Storage/Ski Clubs. July 6, 2021 - Page 178 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : Current Capital P roject Update P RE S E NT E R(S ): Tom K assmel Town E ngineer Greg Hall Director of Public Works and Transportation AC T IO N RE Q UE S T E D O F C O UNC IL : P rovide any f eedback or questions f or staff. B AC K G RO UND: T he Town of Vail has multiple large-scale capital projects that are on-going. S taff is prepared to provide an update on the evolving status of the following projects: · South F rontage Road Roundabout P roject · C hildren’s G arden of Learning Relocation P roject · D onovan P avilion · Public Works S hop Project S TAF F RE C O M M E ND AT I O N: S taff is available f or questions. AT TAC H ME N TS : Description Staff memom 070621 July 6, 2021 - Page 179 of 210 To: Town Council From: Public Works Department Date: July 6, 2021 Subject: Capital Projects Update I. SUMMARY The Town of Vail has multiple large-scale capital projects that are on-going. Staff is prepared to provide an update on the evolving status of the following projects:  South Frontage Road Roundabout Project  Children’s Garden of Learning Relocation Project  Donovan Pavilion  Public Works Shop Project South Frontage Road Roundabout Project www.vailgov.com/roundaboutproject The Vail South Frontage Road Roundabout Project includes the construction of a new two-lane roundabout just west of the Town Municipal Building and Vail Health. The project also includes extending the existing four lane roadway section with landscape medians, and sidewalks, from the Town Municipal Building west to the Lionshead parking Structure. The project will provide increased capacity for traffic flowing from the Vail Town Center Roundabout to the Lionshead parking structure while accommodating the increased traffic volumes at the new Vail Health South Frontage Road entrance and anticipating future growth and redevelopment within the Lionshead area. Construction began on April 12 and has run into schedule delays due to utility conflicts. The project is currently in Phase I and will move into an interim Phase 1A by mid-July prior to moving fully into Phase II in mid-August. Phase 1A will allow the contractor to work on both sides of the road to accelerate the delayed schedule. Anticipated substantial completion is by the end of October with final completion of Landscape likely in the spring of 2022. July 6, 2021 - Page 180 of 210 Town of Vail Page 2 Phase I (April to Mid-July): Includes the project’s most impactful work to access points and adjacent properties. Work within this phase includes the eastbound traffic lanes, the southern sidewalk, southern retaining wall, utilities, and the southern access points Phase IA (Mid-July to Mid-August): Includes completion of retaining wall work and south sidewalk (Phase I work) and the start of work on the westbound lanes and utilities (Phase II work). Traffic will shift to the south lanes from Vail Health to the Evergreen and then shift back to the north lanes in front of the Vail International. Phase II (Mid-August to September): Includes the project’s less impactful work and minimizes impacts to access points and adjacent properties. Work within this phase includes the construction of the westbound lanes, northern sidewalk, and utilities. Phase III (October): Includes the project’s final completion with median work, final tie- ins, and final asphalt surfacing. Phase IV (Spring 2022): Includes landscaping ad final punch list work. Work is expected to continue six days a week with the option to work seven days a week as necessary and as approved. Night work is not expected but may be accommodated if necessary. In general, each phase of construction will continue to maintain an open travel lane in each direction throughout the project. However, there may be short durations of alternating single lane traffic during critical phases of the work. All access points to public and private properties will be maintained at all times. While work is being completed on access points, public access may be detoured to temporary access drives. As a reminder please slow down through the construction zone. Children’s Garden of Learning Relocation Project The Children’s Garden of Learning Relocation Project includes the construction of a new ~5000 square foot modular construction facility on the Lionshead Oversize Parking Lot, in order to relocate the Children’s Garden of Learning from Middle Creek Lot 3 to allow for the development of employee housing. MW Golden Constructors began construction on May 31, six weeks later than the original anticipated construction start. This was directly related to not receiving any general contractor bids and the required time to negotiate a contract with MW Golden. The project is generally on schedule with an anticipated completion date of September 23. The anticipated date for the arrival of the modulars is the last week of July into the first week of August. Following the completion of the site and building, the state of Colorado will be required to complete a childcare licensing inspection and approval. Upon successful completion of the licensing process the childcare may open in its new location. The anticipated first day of childcare in the new location is ~October 4. July 6, 2021 - Page 181 of 210 Town of Vail Page 3 Donovan Pavilion The Donovan Pavilion remodel and addition included expansion to the kitchen, mechanical system, storage room and the addition of a shared office space, pre- function (bride’s room). In addition, interior finishes are being updated with new carpet, furnishings, and light fixtures. The Pavilion has hosted all the events which were scheduled while final work items have been completed around these events. The light fixture will be changed out in the next couple of weeks again working around the scheduled events. Public Works Shop Project The public works shop project began in April with first the temporary re-location of the public works staff and equipment and the demolition of the old streets shop building occurring shortly thereafter. The existing electrical room and electrical service were relocated and a new service was installed to accommodate the demolition. The project has completed all the foundation pours, erection of the elevator shaft and steel delivery for the project has begun, the steel erection is to begin on July 6th. The work on the shop yard expansion started on June 1st per the requirements of Colorado Department of Parks and Wildlife. This work includes the construction of rockfall protection berm, the construction of retaining wall up to 22’ high and subsequent drainage and yard improvements. The yard will be expanded by nearly 1 acre once the project is completed. The contractor due to longer lead times on many products has advanced the procurement of many of the supplies in order to stay on schedule. This included all the solar panels for the project being purchased in April of this year, due to supply change issues, increased demand and to avoid the price increases from suppliers. Both phases of the project are on schedule, the occupation of the shop building is slated for December 1. July 6, 2021 - Page 182 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : D R B / P E C Update P RE S E NT E R(S ): J onathan Spence, P lanning Manager AT TAC H ME N TS : Description June 16, 2021 D R B Meeting Results June 28, 2021 P E C Meeting Cancelled July 6, 2021 - Page 183 of 210 D E S IG N R E V IE W B O AR D June 16, 2021, 3:00 P M Virtual 75 S. Frontage Road - Vail, Colorado, 81657 1.C all to Order 1.1.Register in advance for this webinar: https://us02web.zoom.us/webinar/register/W N_xA P RvX H9S7qy 9hu8Xr-Zjw After registering, you will rec eive a confirmation email c ontaining information about joining the webinar. 1.2.Attendance Present: J ohn Rediker, Kit Austin, D oug Cahill, Peter C ope Absent: None 2.Main Agenda 2.1.D R B 21-0131 - Abieur C orporation Final review of an addition Address/Legal Desc ription: 360 East Lionshead Circle Unit 2/Lot 6, Bloc k 1, Vail Lionshead Filing 2 Applicant: Abieur Corporation, represented by K H W ebb Arc hitects Planner: Erik Gates 1. Future exterior alterations at this property shall be designed in acc ordance to sheet A.200 dated 6/15/2021. A ny proposed alterations to this approved design shall require D RB review and approval. J ohn Rediker moved to approve with conditions. Peter Cope seconded the motion and it passed (4-0). 2.2.D R B 21-0185 - Four S easons Final review of an exterior alteration (windows/deck/hot tub) Address/Legal Desc ription: 1 Vail Road/Lot A-C, Vail Village Filing 2 Applicant: E X Vail LLC E xtell D evelopment, represented by Larry Deckard Arc hitect Planner: Erik Gates 1. Prior to the issuance of a building permit, the applicant shall submit plans that show trim around the windows and doors that matc h the existing thickness and color on the building. J ohn Rediker moved to approve with conditions. Peter Cope seconded the motion and it passed (4-0). July 6, 2021 - Page 184 of 210 2.3.D R B 21-0205 - Fenley Residence Final review of an exterior alteration (reroof) Address/Legal Desc ription: 4788 Meadow Lane/Lot 4, B lock 7, Bighorn Subdivision 5th Addition Applicant: Kathleen & J ohnny Fenley, represented by Lifetime Roof & Solar Planner: Erik Gates J ohn Rediker moved to table to J uly 7, 2021. Peter Cope seconded the motion and it passed (4-0). 2.4.D R B 21-0214 - Trabold Residence Final review of an exterior alteration (chimney ) Address/Legal Desc ription: 1345 W esthaven Circle / Lot 50, Glen Lyon Subdivision Applicant: Frank & Colleen Trabold, represented by W y att & Associates I nc . Planner: Erik Gates J ohn Rediker moved to approve. Peter Cope seconded the motion and it passed (4-0). 2.5.D R B 21-0136 - J P S S E E agles Nest L L C Final review of an exterior alteration (patio/hot tub/fire pit) Address/Legal Desc ription: 1012 Eagles Nest Circle/Lot 2A , Block 6, Vail Village Filing 7 Applicant: J P S S E Eagles Nest LLC, represented by Fieldsc ape Planner: J onathan S penc e J ohn Rediker moved to table to J uly 7, 2021. Peter Cope seconded the motion and it passed (4-0). 2.6.D R B 21-0143 - Vail Mar riott Final review of an exterior alteration (fire pits) Address/Legal Desc ription: 715 W est Lionshead Circ le/W est Day Subdivision Applicant: Diamondroc k Vail Owner L LC, represented by Neo Studio Planner: J onathan S penc e J ohn Rediker moved to table to J uly 7, 2021. Kit Austin sec onded the motion and it passed (4-0). 2.7.D R B 21-0199 - Bergey R esidence Final review of new c onstruc tion Address/Legal Desc ription: 2417 Chamonix Lane/Lot 20, Bloc k A, Vail Das Sc hone Filing 1 Applicant: J ohn Bergey, represented by Martin Manley Arc hitects Planner: J onathan S penc e 1. The applicant shall obtain approval from staff for a revision to the landsc ape plan to inc lude additional plantings in the landscape strip July 6, 2021 - Page 185 of 210 between driveways, as discussed at the D RB meeting. 2. I f due to grading operations the two trees in the S W c orner are removed, the applic ant will apply for a revision to the landsc aping plan to include adequate tree plantings of 10' or greater, in that loc ation. J ohn Rediker moved to approve with conditions. Peter Cope seconded the motion and it passed (4-0). 2.8.D R B 19-0689.001 - Lion's View Development Final review of a change to approved plans (materials/roof form/GRFA) Address/Legal Desc ription: 500 East Lionshead Circle/Lot 1 & 3, Blcok 1, Vail Lionshead Filing 1 Applicant: Lazier Lionshead Parc el L LLC, represented by OZ Arc hitecture Planner: J onathan S penc e 1. the applicant shall amend the plan set prior to submitting for a building permit to show the new stucc o areas to be indistinguishable from the c ast stone in terms of c olor and texture and that the venting to be c olored to matc h the stucc o siding. J ohn Rediker moved to approve with conditions. Kit Austin sec onded the motion and it passed (3-0). Abstain:(1)C ope 2.9.D R B 21-0115 - E T E L LC Final review of new c onstruc tion Address/Legal Desc ription: 4387 Columbine Drive/Lot 1, Bloc k 6, Bighorn Subdivision 3rd Addition Applicant: E TE L L C , represented by Epic Design S tudio Planner: Greg Roy J ohn Rediker moved to table to J uly 7, 2021. Peter Cope seconded the motion and it passed (4-0). 2.10.D R B 21-0197 - North Fifth LL C C onceptual review of an addition Address/Legal Desc ription: 303 Gore Creek Drive Unit 7/Lot 7, Bloc k 5, Vail Village Filing 1 Applicant: North Fifth L L C , represented by Berglund A rchitec ts Planner: Greg Roy 2.11.D R B 20-0328.004 - J C R J S FM LL C Final review of a change to approved plans (gate/site wall) Address/Legal Desc ription: 375 Mill Creek Circle / Lot 17, Block 1, Vail Village Filing 1 Applicant: J C RJ S FM L L C , represented by K H Webb Arc hitects Planner: Greg Roy 1. The gate change is not approved. J ohn Rediker moved to approve with conditions. Peter Cope seconded the July 6, 2021 - Page 186 of 210 motion and it passed (3-1). Ay es:(3)Rediker, C ahill, Cope Nay s:(1)Austin 2.12.D R B 20-0462.001 - Lair d R esidence Final review of a changed to approved plans (scope reduc tion) Address/Legal Desc ription: 1967 Circ le Drive / Lot 24, B uffehr Creek Resubdivision Applicant: Stephen & Rebec ca Laird, represented by Pierce Austin Arc hitects Planner: Greg Roy 1. The applicant shall submit a revision for approval with an offset in the materials between the master bedroom and master bathroom wall. 2. The fascia on the front deck will be brought back to form a bellyband between the first level and sec ond level. 3. Approval is contingent upon review and approval from the Public W orks Department. J ohn Rediker moved to approve with conditions. Peter Cope seconded the motion and it passed (3-0). Abstain:(1)Austin 2.13.D R B 21-0233 - Town of Vail Final review of a new housing development Address/Legal Desc ription: 129 North Frontage Road W est/Lot 3, Middle C reek Subdivision Resub Lot 1 Applicant: Town of Vail, represented by Triumph Development Planner: Greg Roy J ohn Rediker moved to table to J uly 7, 2021. Peter Cope seconded the motion and it passed (3-0). Absent:(1)Austin 3.Staff A pprovals 3.1.D R B 21-0113 - Thompson R esidence Final review of an exterior alteration (doors/windows) Address/Legal Desc ription: 22 W est Meadow Drive Unit 250 / Lot H, Vail Village Filing 2 Applicant: J ohn W alter Thompson, represented by Rob Hall's Kitc hens Plus Planner: Greg Roy 3.2.D R B 21-0168 - Gillis & Marianino Residences Final review of an exterior alteration (siding) Address/Legal Desc ription: 4030 Fall Line Drive/Lot 1, P itkin Creek Meadows Subdivision Applicant: Mark Gillis and Daniel Marianino, represented by 1st Priority Roofing July 6, 2021 - Page 187 of 210 Planner: Erik Gates 3.3.D R B 21-0203 - Sandstone 70 Final review of an exterior alteration (reroof) Address/Legal Desc ription: 903 North Frontage Road W est/Sandstone70 Applicant: Sandstone 70, represented by Mountain Valley Property Management Planner: Erik Gates 3.4.D R B 21-0204 - Sandstone 70 Final review of an exterior alteration (repaint) Address/Legal Desc ription: 905-929 North Frontage Road W est/Sandstone 70 Applicant: Sandstone 70, represented by Mountain Valley Property Management Planner: Erik Gates 3.5.D R B 21-0208 - Valls R esidence Final review of a tree removal Address/Legal Desc ription: 2930 Booth Creek Drive Unit B/Lot 1, Bloc k 3, Vail Village Filing 11 Applicant: Bart & Aimee Valls, represented by Old Growth Tree Servic e Planner: Greg Roy 3.6.D R B 21-0212 - Herbst Residence Final review of an exterior alteration (deck) Address/Legal Desc ription: 3094 Booth Falls Road Unit 15/Lot 1, Block 2, Vail Village Filing 12 Applicant: Timothy Herbst Planner: Erik Gates 3.7.D R B 21-0213 - Casolar D el Norte Final review of a tree removal Address/Legal Desc ription: 1180 C asolar Del Norte/C asolar Vail Applicant: Casolar Del Norte, represented by Ceres Landc are Planner: J onathan S penc e 3.8.D R B 21-0218 - Out of Bounds LL C Final review of an exterior alteration (siding/stucco) Address/Legal Desc ription: 1139 Sandstone Drive Unit 4 /Lot A1 & A2, Bloc k A, Lion's Ridge Subdivision Filing 1 Applicant: Out of Bounds L L C , represented by J an Karst Planner: Greg Roy 3.9.D R B 21-0223 - Vail P oint 31 L LC Final review of an exterior alteration (windows) Address/Legal Desc ription: 1881 Lions Ridge Loop Unit 31 / Lot 1, Block 3, Lion's Ridge Subdivision Filing 3 July 6, 2021 - Page 188 of 210 Applicant: Vail Point 31 L L C , represented by Cairn Construction Group Planner: Greg Roy 3.10.D R B 21-0226 - Paula Fischer Revocable Trust Final review of an exterior alteration (windows) Address/Legal Desc ription: 2695 Davos Trail/Lot 17, B lock B, Vail Ridge Subdivision Applicant: Paula Fischer Revoc able Trust, represented by D ivision Six C onstruc tion Planner: J onathan S penc e 3.11.D R B 21-0228 - Deep Powder Inc. Final review of an exterior alteration (windows) Address/Legal Desc ription: 16 Forest Road/Lot 1, B lock 7, Vail Village Filing 1 Applicant: Deep Powder I nc ., represented by Rob Halls K itchens Plus Planner: J onathan S penc e 3.12.D R B 21-0229 - Entin Residence Final review of an exterior alteration (windows) Address/Legal Desc ription: 5020 Main Gore Place Unit J 1/Vail East Townhomes Applicant: Howard Entin, represented by HS T Construc tion, I nc . Planner: J onathan S penc e 3.13.D R B 21-0230 - Cole Residence Final review of an exterior alteration (reroof) Address/Legal Desc ription: 5129 Black Bear Lane/Lot 13, Block 2, Gore C reek Subdivision Applicant: Lester & A nn C ole, represented by HighPeak Roofs LLC Planner: J onathan S penc e 3.14.D R B 21-0237 - Roar k Residence Final review of an exterior alteration (driveway ) Address/Legal Desc ription: 1873 Lions Ridge Loop Unit A/Lot 2, Bloc k 3, Lion's Ridge Subdivision Filing 3 Applicant: Gregory A Roark 2007 Revocable Trust, represented by Burke Harrington Construction Planner: J onathan S penc e 3.15.D R B 21-0084.001 - H osea Residence Final review of a change to approved plans (deck material/railing) Address/Legal Desc ription: 5047 Main Gore Drive North/Lot 1, Block 1, Bighorn Subdivision 5th A ddition Applicant: David Hosea Planner: J onathan S penc e The applications and information about the proposals are available for public inspec tion during July 6, 2021 - Page 189 of 210 regular offic e hours at the Town of Vail C ommunity D evelopment Department, 75 South Frontage Road. The public is invited to attend the projec t orientation and the site visits that precede the public hearing in the Town of Vail Town Council Chambers. Times and order of items are approximate, subject to change, and c annot be relied upon to determine at what time the D esign Review Board will consider an item. Please c all 970-479-2138 for additional information. Sign language interpretation available upon request with 24-hour notification, dial 711. July 6, 2021 - Page 190 of 210 P L ANNI NG AND E NV I RO NM E NTAL C O M M I S S I O N J une 28, 2021, 1:00 P M M eeting Cancelled 75 S. F rontage Road - Vail, Colorado, 81657 1.Call to Order 1.1.Meeting Cancelled 2.Main Agenda 3.Adjournment The applications and information about the proposals are available for public inspec tion during regular offic e hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site vis its that prec ede the public hearing in the Tow n of Vail Community Development Department. Times and order of items are approximate, subject to c hange, and c annot be relied upon to determine at w hat time the Planning and Environmental Commission w ill c onsider an item. Please c all (970) 479-2138 for additional information. Please call 711 for sign language interpretation 48 hour prior to meeting time. Community Development Department Published in the Vail Daily June 25, 2021 July 6, 2021 - Page 191 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : V L HA J une 8, 2021 Minutes AT TAC H ME N TS : Description V L H A June 8, 2021 Minutes July 6, 2021 - Page 192 of 210 Vail Local Housing Authority Minutes June 8, 2021 3:00 PM Virtual Meeting 75 S. Frontage Road - Vail, Colorado, 81657 PRESENT ABSENT Steve Lindstrom Mary McDougall Greg Moffet Molly Morales James Wilkins Staff George Ruther, Housing Director Lynne Campbell, Housing Coordinator 1. Call to Order 1.1. Zoom Meeting 1 (call to order pre-executive session) 1.2. Zoom Meeting 2 (post executive session) 1.3. Call to Order A quorum being present Lindstrom called the meeting to order at 3:01PM. McDougall is absent. Wilkins left meeting at 3:15PM just prior to the Authority entering executive session. 1.4. VLHA Vote for Chairman Moffet made a motion to reappoint Lindstrom as Chairman. MOTION: MOFFET SECOND: WILKINS VOTE: 3-0 AP Lindstrom abstained 2. Citizen Participation 2.1. Citizen Participation Tom Vucich asked if Moffet had been asked to step down until lawsuit July 6, 2021 - Page 193 of 210 with the Town had been settled. Lindstrom acknowledge Vucich’s comment and thanked him. Cynthia Fitch requested an update on the West Vail Master Plan. Lindstrom stated the process is underway and being led by the Community Development department. A draft master plan is being prepared and will be shared with the public, PEC and Council at their August 1st meeting. 3. Approval of Minutes 3.1. VLHA May 11, 2021 Minutes MOTION: WILKINS SECOND: MOFFET VOTE: 4-0 AP 3.2. VLHA May 25, 2021 Minutes MOTION: WILKINS SECOND: MOFFET VOTE: 4-0 AP 4. Main Agenda There are no topics this week. 5. Matters from the Chairman and Authority Members 5.1. Matters from the Chairman and Authority Member Presenter: Steve Lindstrom, Chairman EPS is presenting commercial and residential linkage and inclusionary zoning update at the June 15, 2021 Council meeting per Ruther. Council’s feed back will determine next steps. Deed restriction values discussion is pending coordination with Tim Zarlengo. Lindstrom and Ruther reminded the members Housing’s biannual Council update is scheduled for July 6, 2021. Morales stated she is following the Town of Frisco’s housing emergency declaration. MOTION: MOFFET SECOND: WILKINS VOTE: AP Wilkins left meeting at 3:15PM. Moffet made a motion to enter executive session. 6. Executive Session 6.1. Executive Session per C.R.S. §24-6-402(4)(a)(e) - to discuss the purchase, acquisition, lease, transfer or sale of real, personal or other property interests July 6, 2021 - Page 194 of 210 and to determine positions relative to matters that may be subject to negotiations regarding: Vail InDEED applications and deed restrictions. Presenter: Lynne Campbell, Housing Coordinator Authority reentered the regular meeting, Lindstrom, Morales and Moffet present. 7. Any Action as a Result of Executive Session 7.1. Action As Results of Executive Session Moffet recommended staff continue with the Vail InDEED negotiations as discussed in executive session. MOTION: MOFFET SECOND: MORALES VOTE: 3-0 AP 8. Adjournment 8.1. Adjournment 3:33PM Moffet made a motion to adjourn the meeting. MOTION: MOFFET SECOND: MORALES VOTE: 3-0 AP 9. Future Agenda Items 9.1. • Land Banking (sale of GRFA • Public Health Housing Incentive, Eagle County Health • Joint VLHA, Town Council, Planning & Environmental Commission Meeting Regarding Commercial Linkage/Inclusionary Zoning and Adopted Housing Policy Review • Investment Banker Discussion - Long Term Housing Funding 10. Next Meeting Date 10.1. Next Meeting Date June 22, 2021 Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vailgov.com. All housing authority meetings are open to the public. Times and order of agenda are approximate, subject to change, and cannot be relied upon to determine at what time the Vail Local Housing Authority will discuss an item. Please call (970) 479-2150 for additional information. Please call 711 for sign language interpretation 48 hours prior to meeting time. Housing Department July 6, 2021 - Page 195 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : J une R evenue Update AT TAC H ME N TS : Description June Revenue Update July 6, 2021 - Page 196 of 210 TOWN OF VAIL REVENUE UPDATE July 6, 2021 Sales Tax Upon receipt of all sales tax returns, May collections are estimated to be $965,557 up 91.6% from last year and up 0.17% compared to amended budget. May collections were the highest total May collections on record and exceeded 2019 collections by 26.4% and 2018 collections by 16.3%. Year to date collections of $14,065,726 are up 21.9% from 2020 but down (4.1)% from 2019. Compared to amended budget, year to date collections are flat. Inflation as measured by the consumer price index was up 5.0% for May. The annual amended budget totals $27.5 million. Real Estate Transfer Tax (RETT) RETT collections through June 29 total $5,261,175 up 117.9% from this time last year and up 78.9% from this time in 2019. The 2021 annual RETT budget totals $8,000,000, down 23.4% from 2020 actual collections. Construction Use Tax Use Tax collections through June 29 total $2,400,060 compared to $733,781 from this time last year. The 2021 amended budget totals $3,250,000. Summary Across all funds, year-to-date total revenue of $40.5 million is up 2.3% from amended budget and up 33.7% from prior year. 2021 revenue is up 7.3% from 2019 due to increased Real Estate Transfer Tax collections, daily parking sales during January through April, and construction activities. July 6, 2021 - Page 197 of 210 2021 Budget % change % change 2016 2017 2018 2019 2020 Amended Budget Variance from 2020 from Budget January 3,738,824$ 3,725,212$ 3,597,610$ 4,079,994$ 4,076,145$ 3,400,000 3,412,300$ 12,300$ -16.29% 0.36% February 3,746,055 3,692,592 3,818,356 4,137,087 4,285,633 3,680,000 3,682,130 2,130$ -14.08% 0.06% March 4,225,921 3,642,407 4,167,880 4,237,933 2,243,518 4,370,000 4,352,300 (17,700) 93.99% -0.41% April 1,089,749 1,386,780 1,233,474 1,445,071 427,518 1,650,000 1,653,439 3,439 286.75% 0.21% May 654,462 659,475 830,193 763,756 503,828 965,000 965,557 557 91.64% 0.06% YTD Total 13,455,011$ 13,106,466$ 13,647,513$ 14,663,841$ 11,536,642$ 14,065,000$ 14,065,726$ 726$ 21.92% 0.01% June 1,318,092 1,389,982 1,648,443 1,606,748 1,023,517 1,000,000 July 2,053,773 2,215,649 2,412,425 2,480,292 2,084,644 2,100,000 August 1,849,815 1,863,949 2,195,175 2,237,050 2,138,838 2,100,000 September 1,349,929 1,385,462 1,540,490 1,600,100 1,767,393 1,770,000 October 906,385 936,954 1,106,596 1,165,176 1,371,727 1,370,000 November 989,320 997,716 1,264,600 1,260,314 1,425,461 1,425,000 December 3,840,919 3,695,305 4,070,870 4,237,178 3,625,189 3,670,000 Total 25,763,244$ 25,591,483$ 27,886,112$ 29,250,698$ 24,973,411$ 27,500,000$ 14,065,726$ Actual Collections Collected Sales Tax July 6, 2021 Town of Vail Revenue Update SALES TAX 2021 Budget Comparison July 6, 2021 - Page 198 of 210 Through May 31 May Sales Tax Collections by Year Through May 31 Town of Vail Revenue Update July 6, 2021 YTD Sales Tax Collections by Year $13,106,466 $13,647,513 $14,663,841 $11,536,642 $14,065,726 $0 $2,500,000 $5,000,000 $7,500,000 $10,000,000 $12,500,000 $15,000,000 2017 2018 2019 2020 2021 • YTD collections of $14,065,726 are up 21.9% from prior year and flat with amended budget. • Inflation as measured by the consumer price index was up 5.0% in May. • The 2021 sales tax budget totals $27.5M. $659,475 $830,193 $763,756 $503,828 $965,557 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 2017 2018 2019 2020 2021 • May collections of $965,557 are up 91.6% from prior year and up 0.1% from amended budget. • Collections for the month set the record for the single highest May collections. July 6, 2021 - Page 199 of 210 Construction Use Tax by Year YTD Through June YTD Through June Town of Vail Revenue Update July 6, 2021 Real Estate Transfer Tax by Year $882,464 $1,162,368 $1,706,962 $733,781 $2,400,060 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,000 $2,500,000 2017 2018 2019 2020 2021 • This chart shows YTD collections of 1% RETT, segmented by individual home sale value. • 2021 RETT collections through June 29 total $5,261,175 up 117.9% from the prior year. -$500,000 $500,000 $1,500,000 $2,500,000 $3,500,000 $4,500,000 $5,500,000 2017 2018 2019 2020 2021 Sales Less Than $2.5 Million Sales $2.5 to $5.0 Million Sales $5 to $10 Million Sales Over $10 Million $3,186,630 $3,675,305 $2,944,293 $2,414,347 $5,261,175 • Use Tax collections through June total $2,400,060 compared to $733,781 from this is an increase of 227.1% July 6, 2021 - Page 200 of 210 Vail Business Review April 2021 July 6, 2021 The Vail Business Review breaks down the four percent sales tax collected for the month of April and the 2020/2021 ski season Overall, April sales tax increased 286.8% with retail increasing 149.9%, lodging increased 1,967.3%, food and beverage increased 2,019.5%, and utilities/other increased by 30.4%. Excluding the out of town category; sales tax for the month of April was down 593.1%. The ski season 2020/2021 resulted in an overall 9.6% increase from the prior year. Retail increased 18.7%, lodging increased 6.8%, food and beverage increased 4.8% and utilities and other decreased (5.0)%. Town of Vail sales tax forms, the Vail Business Review and sales tax worksheets are available on the internet at www.vailgov.com. You can subscribe to have the Vail Business Review and the sales tax worksheet e-mailed to you automatically from www.vailgov.com. Please remember when reading the Vail Business Review that it is produced from sales tax collections, as opposed to actual gross sales. If you have any questions or comments, please feel free to call me at (970) 479-2125 or Carlie Smith at (970) 479-2119. Sincerely, Alex Jakubiec Town of Vail Revenue Manager July 6, 2021 - Page 201 of 210 April 2021 Sales Tax Collections by Business Type Town of Vail Business Review April Tax Collections By Year April 2021 Sales Tax April 2020 Retail $647,777 Lodging $469,880 Food & Beverage $368,569 Utilities & Other $167,178 $0 $150,000 $300,000 $450,000 $600,000 $750,000 149.9% 2,019.5%30.4% $1,387,343 $1,233,941 $1,444,250 $427,455 $1,653,403 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 2017 2018 2019 2020 2021 1,967.3% • This report represents collections of Town of Vail 4% sales tax, as opposed to actual gross sales • Overall, 2021 April sales tax collections were up 286.8% from the prior year. • April 2021 retail sales increased 149.9%, lodging increased 1,967.3%, food and beverage increased 2,019.5% and utilities and other increased 30.4%. Retail $259,176 Lodging $22,729 Food & Beverage $17,389 Utilities & Other $128,161 $0 $150,000 $300,000 $450,000 $600,000 $750,000 July 6, 2021 - Page 202 of 210 Geographic Area Trends by Year April Sales Tax Sales Tax by Location Town of Vail Business Review April 2021 Sales Tax April 2020April 2021 Other Areas 16% Lionshead 13% Out of Town 29% Vail Village 42% Other Areas 28% Lionshead 4%Out of Town 60% Vail Village 8% • Vail Village sales tax increased 1,964.1%, Lionshead increased 1,332.7%, Other Areas increased 114.9%, and Out of Town increased 85.4%. Excluding Out of Town collections, all areas were up 593.1%. • Effective October 1st, 2020, the town of Vail enacted new regulations which shifted collections of some sales tax from local vendors to their marketplace facilitators who file under the out-of-town category. $181,939 $211,887 $238,044 $120,376 $258,716 $276,710 $189,196 $241,484 $15,581 $223,234 $240,191 $308,803 $331,867 $257,916 $478,289 $688,504 $524,055 $632,855 $33,582 $693,164 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2017 2018 2019 2020 2021 Other Areas Lionshead Out of Town Vail Village • This chart shows April sales tax collections, by geographic area over time. July 6, 2021 - Page 203 of 210 April Sales Tax Accommodation Services Sales Tax by Year Retail Business Sales Tax Detail April 2021 Sales Tax Town of Vail Business Review Apparel $121,700 Grocery $125,565 Gallery $4,398 Gifts $2,928 Jewelry $20,753Retail Liquor $38,086 Retail Other $148,326 Sporting Goods $143,635 Online Retailers $42,299 Retail Home Occupation $87 • Overall, April 2021 accommodations services were up 1,967.3%, short-term rentals were up 1,768.8% and hotels and lodges were up 2,082.9%. $288,861 $57,780 $14,370 $8,359 $313,672 $156,208 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Hotels/Lodges Short-Term Rentals 2021 2020 2019 July 6, 2021 - Page 204 of 210 Retail 143,737.50 104,120.22 38.05% Lodging 73,337.56 5,388.36 1261.04% F & B 38,606.82 8,965.40 330.62% Other 3,033.79 1,901.67 59.53% Total 258,715.67 120,375.65 114.92% Retail 74,556.25 3,683.32 1924.16% Lodging 90,600.53 8,810.13 928.37% F & B 58,034.49 3,087.74 1779.51% Other 43.01 - 0.00% Total 223,234.28 15,581.19 1332.72% Retail 162,638.34 134,931.49 20.53% Lodging 157,230.48 411.09 38146.91% F & B 740.86 69.39 967.68% Other 157,678.95 122,504.45 28.71% Total 478,288.63 257,916.43 85.44% Retail 266,844.71 16,441.24 1523.02% Lodging 148,711.19 8,118.97 1731.65% F & B 271,186.52 5,266.91 5048.87% Other 6,421.80 3,754.96 71.02% Total 693,164.22 33,582.09 1964.09% Retail 647,776.80 259,176.28 149.94% Lodging 469,879.76 22,728.56 1967.35% F & B 368,568.69 17,389.44 2019.50% Other 167,177.55 128,161.08 30.44% Total 1,653,402.80 427,455.35 286.80% Retail Apparel 121,700.13 5,936.04 1950.19% Retail Food 125,564.71 81,821.61 53.46% Retail Gallery 4,397.52 2,292.12 91.85% Retail Gift 2,927.68 - 0.00% Retail Home Occupation 87.30 186.90 -53.29% Retail Jewelry 20,753.19 716.96 2794.62% Retail Liquor 38,085.90 23,898.58 59.36% Retail Other 148,326.23 128,869.64 15.10% Retail Sport 143,635.37 6,395.89 2145.74% Retail Online Retailer 42,298.77 9,058.54 366.95% Total 647,776.80 259,176.28 149.94% Total - All Areas Lionshead Out of Town Vail Village Retail Summary Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review April Sales Tax 2021 Collections 2020 Collections YoY % Change July 6, 2021 - Page 205 of 210 Town of Vail Business Review Ski Season Tax Collections By Year Ski Season 2020-2021 Sales Tax Ski Season 2019-2020Ski Season 2020-2021 Sales Tax Collections by Business Type Retail $6,790,414 Lodging $6,708,402 Food & Beverage $3,508,513 Utilities & Other $1,156,727 $0 $1,500,000 $3,000,000 $4,500,000 $6,000,000 $7,500,000 18.7%4.8%(5.0)% RLFU -$8,000,000 $12,000,000 $17,293,651 $17,554,243 $19,253,660 $16,568,337 $18,164,056 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2016-17 2017-18 2018-19 2019-20 2020-21 6.8% • This report represents collections of Town of Vail 4% sales tax, as opposed to actual gross sales • Ski season tax collections are from November 1st through April 30th. • Overall, 2020-21 Ski Season sales tax collections were up 9.6% from the prior year. • Ski Season 2020-21 retail sales increased 18.7%, lodging increased 6.8%, food and beverage increased 4.8% and utilities and other decreased (5.0)%. Retail $5,719,511 Lodging $6,283,590 Food & Beverage $3,348,094 Utilities & Other $1,217,141 $0 $1,500,000 $3,000,000 $4,500,000 $6,000,000 $7,500,000 July 6, 2021 - Page 206 of 210 Town of Vail Business Review Ski Season 2020-2021 Sales Tax Ski Season 2019-2020Ski Season 2020-2021 Geographic Area Trends by Year Ski Season 2020-2021 Sales Tax by Location Other Areas 15% Lionshead 17% Out of Town 26% Vail Village 42% Other Areas 16% Lionshead 22% Out of Town 14% Vail Village 48% • Vail Village sales tax decreased (4.3)%, Lionshead decreased (15.4)%, Other Areas increased 5.3%, and Out of Town increased 103.8%. Excluding Out of Town collections, all areas were down (5.4)%. • Effective October 1st, 2020, the town of Vail enacted new regulations which shifted collections of some sales tax from local vendors to their marketplace facilitators who file under the out-of-town category. $2,041,399 $2,466,808 $3,004,018 $2,597,856 $2,736,752 $4,253,454 $4,111,066 $4,498,553 $3,675,242 $3,109,584 $1,798,445 $1,956,682 $2,245,775 $2,280,030 $4,646,984 $9,200,354 $9,019,687 $9,505,315 $8,015,210 $7,670,736 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2016-17 2017-18 2018-19 2019-20 2020-21 Other Areas Lionshead Out of Town Vail Village • This chart shows Ski Season sales tax collections, by geographic area over time. July 6, 2021 - Page 207 of 210 Retail Business Sales Tax Detail Ski Season 2020-2021 Sales Tax Town of Vail Business Review Ski Season 2020-2021 Accommodation Services Sales Tax by Year Apparel $1,196,051 Grocery $1,127,810 Gallery $41,988 Gifts $32,360 Jewelry $195,987 Retail Liquor $389,771 Retail Other $1,438,456 Sporting Goods $1,994,384 Online Retailers $372,675 Retail Home Occupation $1.306 • Overall, 2020-21 Ski Season accommodations services were up 6.8%, short-term rentals were up 58.2% and hotels and lodges were down (6.8)%. $6,070,681 $1,206,033 $4,970,322 $1,313,269 $4,630,513 $2,077,889 $0 $1,500,000 $3,000,000 $4,500,000 $6,000,000 $7,500,000 Hotels/Lodges Short-Term Rentals 2020-21 2019-20 2018-19 July 6, 2021 - Page 208 of 210 Retail 1,379,574.56 1,169,227.85 17.99% Lodging 1,000,928.91 1,072,707.51 -6.69% F & B 327,080.51 316,525.02 3.33% Other 29,168.15 39,395.25 -25.96% Total 2,736,752.13 2,597,855.63 5.35% Retail 1,003,793.26 930,091.05 7.92% Lodging 1,473,816.84 2,144,216.69 -31.27% F & B 624,611.42 585,415.52 6.70% Other 7,362.23 15,518.76 -52.56% Total 3,109,583.75 3,675,242.02 -15.39% Retail 1,575,522.49 1,232,972.16 27.78% Lodging 2,044,416.76 21,960.65 9209.45% F & B 9,975.22 7,238.84 37.80% Other 1,017,069.66 1,017,857.93 -0.08% Total 4,646,984.14 2,280,029.59 103.81% Retail 2,831,523.41 2,387,220.28 18.61% Lodging 2,189,239.65 3,044,705.57 -28.10% F & B 2,546,846.15 2,438,915.06 4.43% Other 103,126.63 144,369.10 -28.57% Total 7,670,735.84 8,015,210.00 -4.30% Retail 6,790,413.73 5,719,511.34 18.72% Lodging 6,708,402.16 6,283,590.42 6.76% F & B 3,508,513.30 3,348,094.44 4.79% Other 1,156,726.68 1,217,141.04 -4.96% Total 18,164,055.86 16,568,337.24 9.63% Retail Apparel 1,196,050.94 860,125.36 39.06% Retail Food 1,127,809.51 942,066.14 19.72% Retail Gallery 41,988.28 27,813.57 50.96% Retail Gift 32,359.64 25,192.27 28.45% Retail Home Occupation 1,305.64 579.85 125.17% Retail Jewelry 195,987.21 139,095.28 40.90% Retail Liquor 389,770.68 311,053.63 25.31% Retail Other 1,438,455.79 1,371,792.52 4.86% Retail Sport 1,994,383.97 1,939,820.50 2.81% Retail Online Retailer 372,674.85 101,972.23 265.47% Total 6,790,786.50 5,719,511.34 18.73% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review Ski Season Sales Tax Ski Season 2020-2021 Ski Season 2019-2020 YoY % Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary July 6, 2021 - Page 209 of 210 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C : Recess 5:20 pm (estimate) July 6, 2021 - Page 210 of 210