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HomeMy WebLinkAbout2022-06-07 Agenda and Supporting Documentation Town Council Evening Meeting Agenda VAIL TO W N C O U N C IL R E G U L AR ME E TIN G Evening Agenda Town Council C hambers and Virtual on Zoom 6:00 P M, June 7, 2022 Meeting to be held in C ouncil Chambers and Virtually on Zoom (access H igh Five Access Media livestream day of the meeting) Notes: Times of items are approximate, subject to c hange, and cannot be relied upon to determine what time C ounc il will consider an item. Public comment will be taken on each agenda item. Citizen participation offers an opportunity for citizens to express opinions or ask questions regarding town services, policies or other matters of community conc ern, and any items that are not on the agenda. Please attempt to keep c omments to three minutes; time limits established are to provide efficienc y in the c onduct of the meeting and to allow equal opportunity for everyone wishing to speak. 1.Citizen Participation (10 min.) 2.Any action as a result of executive session 3.Appointments for Boards and Commissions 3.1.Vail Local Housing Authority Appointment (V LHA)5 min. Presenter(s): Kim Langmaid, Mayor Staff Recommendation: Appoint one member to the Vail Local Housing Authority for a partial term ending May 31, 2026. 4.Consent Agenda (5 min.) 4.1.Resolution No. 28, Series of 2022, A Resolution Adopting the Town of Vail Permit and I nspection Fee Scheduled as Maintained by the Community Development Department Background: The Community Development Department is tasked with reviewing and issuing building construction permits and maintaining the Town’s Permit and I nspection Fee Schedule. The previous Permit and I nspection Fee Schedule was approved within the code adoption ordinance and not as a resolution. The only change to Town Permit and I nspection Fee Schedule is to correctly align each permit fee increment that was found to be incorrect, and to clean up language within the schedule. Staff Recommendation: Approve, approve with amendments or deny Resolution No. 28, Series of 2022. 4.2.Resolution No. 29, Series of 2022, A Resolution Approving the Purchase of the Residential Property known as Pitkin Creek Condominium, Unit 12-L, 4061 Bighorn Road, Vail Colorado 81657 June 7, 2022 - Page 1 of 177 Background: The availability of housing for its employees remains an ongoing need for the Town of Vail municipal government. As the fourth largest employer in Vail, the Town of Vail too is challenged by the need for housing for its workforce. As the F TE count for the Town grows so does it’s need to support housing for the employees. Over the years the Town has taken a wide range of approaches to addressing its employee housing needs, including “buying down” homes for purchase by Town of Vail employees. Staff Recommendation: Approve, approve with amendments or deny Resolution No. 29, Series of 2022. 4.3.Resolution No. 30, Series of 2022, A Resolution Approving the Purchase of the Residential Property known as Chamonix Vail Townhome, Unit B, 2347 Upper Traverse W ay, Vail, Colorado 81657 Background: The availability of housing for its employees remains an ongoing need for the Town of Vail municipal government. As the fourth largest employer in Vail, the Town of Vail too is challenged by the need for housing for its workforce. As the F TE count for the Town grows so does it’s need to support housing for the employees. Over the years the Town has taken a wide range of approaches to addressing its employee housing needs, including “buying down” homes for purchase by Town of Vail employees. Staff Recommendation: Approve, approve with amendments or deny Resolution No. 30, Series of 2022 4.4.Resolution No. 32, Series of 2022, A Resolution Approving a First Amendment to Employment Agreement between the Town of Vail and Stan Zemler Background: On April 19, 2022 the Town of Vail entered into an employment agreement whereby the Town employed the services of Stan Zemler as the I nterim Town Manager as allowed by the Town Charter and wish to amend the agreement. Staff Recommendation: Approve, approve with amendments or deny Resolution 32, Series of 2022. 4.5.Contract Award to Hallmark I nc. for Donovan Park Pedestrian Bridge Deck Rehabilitation Background: Staff received 3 bids for the Donovan Park Pedestrian Bridge Deck Rehabilitation Project from Hallmark, I nc., Kraemer North America and A B C O Contracting with Hallmark the apparent low responsible bidder. The project is budgeted with the recreation paths and trails RE TT budget and is within budget. The existing pedestrian bridge over the Gore Creek is located on the south end of Donovan Park and adjacent to the Matterhorn Circle vehicular bridge over Gore Creek connecting the neighborhood to the south to the park. The existing bridge deck has significant spalling and will continue to get worse with each freeze/thaw cycle. Work includes removal of the existing bridge deck and installation of a new concrete bridge deck. The project is scheduled to be completed by September 2, 2022. Staff Recommendation: Authorize the Town Manager to enter into an agreement, in a form approved by the Town Attorney, with Hallmark, I nc to complete the Donovan Park Pedestrian Bridge Deck Rehabilitation Project in the amount not to exceed $123,453.50. 5.Town Manager Report (10 min.) 5.1.Update on Temporary Structures June 7, 2022 - Page 2 of 177 6.Action Items 6.1.Ordinance No. 4, Series of 2022, First Reading, An Ordinance Amending Ordinance No. 20, Series of 2005, Providing for a Major Amendment to Special Development District No. 36, Four Seasons Resort, Pursuant to Article A, Special Development (S D D) District, Chapter 9, Title 12, Zoning Regulations, Vail Town Code, and Setting Forth Details in Regard Thereto 30 min. Presenter(s): J onathan Spence, Planning Manager Action Requested of Council: Table this item to the J une 21, 2022 meeting to allow time for the applicant and staff to coordinate on potential revisions to Ordinance No. 4, Series of 2022. Background: On May 9, 2022, a revised application that proposed to relocate the onsite housing to locations both within the Town of Vail and the adjacent Eagle-Vail community. A portion of the obligation was proposed to be satisfied through the purchase of seven (7) deed restrictions (2-bedroom units) in an existing multifamily building located in Eagle-Vail. The remainder of the obligation is proposed to be met through in-town deed restrictions. Following the applicant’s presentation and a lengthy discussion, the commission voted 4-1 (Lipnick opposed) to forward a recommendation of denial to the Town Council for the revised application. Staff Recommendation: Table this item to the J une 21, 2022 meeting to allow time for the applicant and staff to coordinate on potential revisions to Ordinance No. 4, Series of 2022. 7.Public Hearings 7.1.Ordinance No. 7, Series of 2022, Second Reading, an Ordinance Amending Title 12 and Title 14 of the Vail Town Code to Amend the Regulations for Building Design and Landscaping in the W ildland Urban I nterface to Reduce the Risk of W ildfire 5 min. Presenter(s): Paul Cada, W ildland Fire and Greg Roy, Senior Planner Action Requested of Council: Approve, approve with modifications, or deny Ordinance No. 7, Series of 2022, upon second reading. Background: The Planning and Environmental Commission (P E C) heard this application on February 14th, 2022. The P E C had concerns on removing the minimum 500 square feet exemption and voted (7-0) to recommend approval with the condition that the exemption relating to additions under 500 square feet in Section 12-11-3 remain. At the May 3rd Town Council meeting, during the review of the building code update, Council indicated they were in support of removing this exemption and the Ordinance has been amended accordingly. Staff Recommendation: Approve, approve with modifications, or deny Ordinance No. 7, Series of 2022, upon second reading. 7.2.Ordinance No. 11, Series of 2022, Second Reading, an Ordinance Replacing Chapter 14 of Title 4 of the Vail Town Code to Update Short-Term Rental Regulations and License Requirements 15 min. Presenter(s): Kathleen Halloran, Director of Finance and Alex J akubiec, Revenue Manager Action Requested of Council: Approve, approve with amendments or deny Second Reading Ordinance No. 11, Series 2022. Background: Based on feedback received during the short-term rental (S TR) study presented at Vail Town Council meetings the attached Ordinance No. 11, Series 2022 was drafted to address the evolving June 7, 2022 - Page 3 of 177 concerns of S TR regulation in Vail. The recommended updates to existing regulations include requirements for fire safety inspections, proof of adequate insurance, a flat fee of $150 to cover Town administrative costs, and increases to the fines and penalties for violations. During the first reading, Council struck a provision for an additonal per-bedroom fee to offset impacts to local housing. The code amendments in the Ordinance have an effective date of J anuary 1st, 2023 and current registrants would be required to comply with the new licensing requirements by the next renewal date in the licensing cycle - February 28th, 2023. Staff Recommendation: Approve, approve with amendments or deny Second Reading Ordinance No. 11, Series 2022. 8.Adjournment 8.1.Adjournment 7:20 pm (estimate) Meeting agendas and materials can be acc es s ed prior to meeting day on the Town of Vail webs ite www.vailgov.com. All town c ouncil meetings will be streamed live by High F ive Ac cess Media and available for public viewing as the meeting is happening. T he meeting videos are als o posted to High F ive Ac cess Media website the week following meeting day, www.highfivemedia.org. P leas e c all 970-479-2136 for additional information. S ign language interpretation is available upon reques t with 48 hour notification dial 711. June 7, 2022 - Page 4 of 177 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: Vail L ocal Housing A uthority A ppointment (V L HA) P RE S E NT E R(S ): K im L angmaid, Mayor S TAF F RE C O M M E ND AT IO N: A ppoint one member to the Vail L ocal Housing Authority for a partial term ending May 31, 2026. June 7, 2022 - Page 5 of 177 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: Resolution No. 28, S eries of 2022, A Resolution Adopting the Town of Vail P ermit and I nspection F ee Scheduled as Maintained by the Community Development Department B AC K G RO UND: The Community Development Department is tasked with reviewing and issuing building construction permits and maintaining the Town’s Permit and I nspection Fee S chedule. T he previous Permit and I nspection Fee S chedule was approved within the code adoption ordinance and not as a resolution. T he only change to Town Permit and I nspection Fee S chedule is to correctly align each permit fee increment that was found to be incorrect, and to clean up language within the schedule. S TAF F RE C O M M E ND AT IO N: A pprove, approve with amendments or deny Resolution No. 28, S eries of 2022. AT TAC H ME N TS: Description Staff Memorandum Resolution No. 28, Series of 2022 Fee Schedule Fee Schedule Comparison June 7, 2022 - Page 6 of 177 06/07/2022 Page 1 To: Vail Town Council From: Community Development Department Date: June 7, 2022 Subject: Resolution No. 28, Series of 2022 – Adoption of the Town of Vail Permit and Inspection Fee Schedule I. Summary: The purpose of this memorandum is to provide information to the Vail Town Council regarding adoption of the updated Town of Vail Permit and Inspection Fee Schedule (Exhibit A), as maintained by the Community Development Department. There were only minor changes to the schedule to align the permit fee increments that were found to be incorrect and to clean up the language within the fee table itself. II. Background: Until 2018, the Town of Vail had been utilizing a permit fee structure that was copied from the 1997 Uniform Building Code – including the fee amounts from 1997. Thus, in 2018, extensive research into permitting fees and associated costs in ‘like’ jurisdictions throughout the state of Colorado and surrounding regions was performed and the updated fee schedule was compiled, presented, and adopted by Council. However, that schedule was placed within the code adoption ordinance and adopted as such. This was a mistake as the fee schedule and associated costs for permitting and inspections should have been adopted via resolution – not within the code adoption ordinance. This, in turn, allows for the fee schedule to be altered, updated or otherwise changed in the future without the need to revise the ordinance. Thus, with the approaching adoption of the latest code editions and amendments, now is the appropriate time to approve the Town of Vail Permit and Inspection Fee Schedule in its correct form through the proposed resolution. III. Staff Recommendation: Staff recommends that Vail Town Council approve Resolution No. 28, Series of 2022. June 7, 2022 - Page 7 of 177 06/07/2022 Page 2 If approved, the effective adoption date of the updated fee schedule shall be July 5, 2022 to coincide with the potential adoption of the latest codes. IV. Attachments a. Resolution 28, Series of 2022 b. Exhibit A – Fee Schedule c. Fee schedule comparison June 7, 2022 - Page 8 of 177 Resolution No. 28, Series of 2022 Page 1 of 1 RESOLUTION NO. 28 SERIES OF 2022 A RESOLUTION ADOPTING THE TOWN OF VAIL PERMIT AND INSPECTION FEE SCHEDULE AS MAINTAINED BY THE COMMUNITY DEVELOPMENT DEPARTMENT WHEREAS, the Town Community Development Department is tasked with reviewing and issuing building construction permits and maintaining the Town’s Permit and Inspection Fee Schedule; WHEREAS, the previous Permit and Inspection Fee Schedule was approved within the code adoption ordinance and not as a resolution; and WHEREAS, the only change to Town Permit and Inspection Fee Schedule is to correctly align each permit fee increment that was found to be incorrect, and to clean up language within the schedule. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. The Town Council hereby adopts the Town of Vail Permit and Inspection Fee Schedule as maintained by the Community Development Department as set forth in the attached Exhibit A. Section 2. This Resolution shall take effect on July 5, 2022, to coincide with the adoption of the 2021 codes. INTRODUCED, READ, APPROVED AND ADOPTED this 7 th day of June, 2022. Kim Langmaid, Mayor, Town of Vail ATTEST: Tammy Nagel, Town Clerk June 7, 2022 - Page 9 of 177 EXHIBIT A TOWN OF VAIL BUILDING PERMIT AND INSPECTION FEE SCHEDULE Total Valuation: Fees: $1.00 to $500.00 $50.00 $501.00 to $2,000.00 $50.00 for the first $500 plus $3.05 for each additional $100 or fraction thereof, to and including $2,000. $2,001.00 to $25,000.00 $95.75 for the first $2,000 plus $14.00 for each additional $1,000 or fraction thereof, to and including $25,000. $25,001.00 to $50,000.00 $417.75 for the first $25,000 plus $10.10 for each additional $1,000 or fraction thereof, to and including $50,000. $50,001.00 to $100,000.00 $670.25 for the first $50,000 plus $7.00 for each additional $1,000 or fraction thereof, to and including $100,000. $100,001.00 to $500,000.00 $1,020.25 for the first $100,000 plus $6.50 for each additional $1,000 or fraction thereof, to and including $500,000. $500,001.00 to $1,000,000.00 $3,620.25 for the first $500,000 plus $5.00 for each additional $1,000 or fraction thereof, to and including $1,000,000. $1,000,001 and above $6,120.25 for the first $1,000,000 plus $4.00 for each additional $1,000 or fraction thereof. Other related fees: Building, plumbing, and mechanical plan review fees 65% of Permit Fee Electrical plan review fees 25% of Permit Fee Plan revision fees $75.00/hr., min. 2 hours Inspections outside of regular business hours $105.00/hr., min. 2 hours Re-inspection fees $105.00/inspection Will-Call fee (added to every permit for will-call inspection services) $5.00 All electrical permit fees are based on the current State of Colorado Electrical Fee Schedule, plus 15%. This includes two (2) inspections. For any additional inspection(s), including re-inspections for corrections assessed by the inspector(s), an additional fee of $105.00 per inspection will be assessed. This fee shall be paid prior to any further inspections. *Plumbing and Mechanical permit fees shall be calculated utilizing the fee table above. **Any work commencing prior to issuance of a permit is subject to double-permit fees. June 7, 2022 - Page 10 of 177 OLD SCHEDULE VS. NEW SCHEDULE Total Valuation: Fees: $1.00 to $500.00 $50.00 $501.00 to $2,000.00 $50.00 for the first $500 plus $3.05 for each additional $100 or fraction thereof, to and including $2000. $2,001.00 to $25,000.00 $87.50 for the first $2000 plus $14.00 for each additional $1,000 or fraction thereof, to and including $25,000. $25,001.00 to $50,000.00 $409.50 for the first $25,000 plus $10.10 for each additional $1,000 or fraction thereof, to and including $50,000. $50,001.00 to $100,000.00 $662.00 for the first $50,000 plus $7.00 for each additional $1,000 or fraction thereof, to and including $100,000. $100,001.00 to $500,000.00 $1012.00 for the first $100,000 plus $6.50 for each additional $1,000 or fraction thereof, to and including $500,000. $500,001.00 to $1,000,000.00 $3612.00 for the first $500,000 plus $5.00 for each additional $1,000 or fraction thereof, to and including $1,000,000. $1,000,001 and above $6112.00 for the first $1,000,000 plus $4.00 for each additional $1,000 or fraction thereof. Other related fees:  Building plan review fees ……………………………………………………65% of Permit Fee  Plumbing and Mechanical plan review fees……………………………….25% of Permit Fee  Electrical plan review fees …………………………………………………..25% of Permit Fee  Plan revision fees …………………………………………………………….$75.00/hr., min. 2 hours  Inspections outside of regular business hours …………………………....$105.00/hr., min. 2 hours  Re-inspection fees …………………………………………………………...$105.00/inspection  Will-Call fee (added to every permit for will-call inspection services) …..$5.00  Plumbing and Mechanical permit fees shall be calculated utilizing the fee table above.  Any work commencing prior to issuance of a permit is subject to double-permit fees.  All electrical permit fees will be based on the current State of Colorado Electrical Fee Schedule, plus 15%. This includes TWO inspections. For ANY additional inspections, including re- inspections for corrections assessed by the inspector(s), an additional fee of $105.00 per inspection will be assessed. This fee shall be paid prior to any further inspections. Total Valuation: Fees: $1.00 to $500.00 $50.00 $501.00 to $2,000.00 $50.00 for the first $500 plus $3.05 for each additional $100 or fraction thereof, to and including $2,000. $2,001.00 to $25,000.00 $95.75 for the first $2,000 plus $14.00 for each additional $1,000 or fraction thereof, to and including $25,000. $25,001.00 to $50,000.00 $417.75 for the first $25,000 plus $10.10 for each additional $1,000 or fraction thereof, to and including $50,000. $50,001.00 to $100,000.00 $670.25 for the first $50,000 plus $7.00 for each additional $1,000 or fraction thereof, to and including $100,000. $100,001.00 to $500,000.00 $1,020.25 for the first $100,000 plus $6.50 for each additional $1,000 or fraction thereof, to and including $500,000. $500,001.00 to $1,000,000.00 $3,620.25 for the first $500,000 plus $5.00 for each additional $1,000 or fraction thereof, to and including $1,000,000. $1,000,001 and above $6,120.25 for the first $1,000,000 plus $4.00 for each additional $1,000 or fraction thereof. Other related fees: Building, plumbing, and mechanical plan review fees 65% of Permit Fee Electrical plan review fees 25% of Permit Fee Plan revision fees $75.00/hr., min. 2 hours Inspections outside of regular business hours $105.00/hr., min. 2 hours Re-inspection fees $105.00/inspection Will-Call fee (added to every permit for will-call inspection services) $5.00 All electrical permit fees are based on the current State of Colorado Electrical Fee Schedule, plus 15%. This includes two (2) inspections. For any additional inspection(s), including re-inspections for corrections assessed by the inspector(s), an additional fee of $105.00 per inspection will be assessed. This fee shall be paid prior to any further inspections. *Plumbing and Mechanical permit fees shall be calculated utilizing the fee table above. **Any work commencing prior to issuance of a permit is subject to double-permit fees. June 7, 2022 - Page 11 of 177 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: Resolution No. 29, S eries of 2022, A Resolution Approving the P urchase of the Residential P roperty known as Pitkin Creek Condominium, Unit 12-L , 4061 B ighorn Road, Vail Colorado 81657 B AC K G RO UND: The availability of housing for its employees remains an ongoing need for the Town of Vail municipal government. As the fourth largest employer in Vail, the Town of Vail too is challenged by the need for housing for its workforce. As the F T E count for the Town grows so does it’s need to support housing for the employees. Over the years the Town has taken a wide range of approaches to addressing its employee housing needs, including “buying down” homes for purchase by Town of Vail employees. S TAF F RE C O M M E ND AT IO N: A pprove, approve with amendments or deny Resolution No. 29, S eries of 2022. AT TAC H ME N TS: Description Memo Resolution No. 29, Series of 2022 exhibit A June 7, 2022 - Page 12 of 177 To: Vail Town Council From: George Ruther, Housing Director Matt Mire, Town Attorney Date: June 7, 2022 Subject: Resolution No. 29, Series of 2022, Authorization to Purchase Pitkin Creek Condominium, Unit 12 - L, 4061 Bighorn Road, Vail, Colorado 1. SUMMARY The purpose of this memorandum is to present the terms for consideration to purchase Pitkin Creek Condominium, Unit 12 - L. A real estate contract to purchase the home has been accepted by the seller, subject to authorization to appropriate funds by the Vail Town Council. 2. BACKGROUND The availability of housing for its employees remains an ongoing need for the Town of Vail municipal government. As the fourth largest employer in Vail, the Town of Vail too is challenged by the need for housing for its workforce. As the FTE count for the Town grows so does it’s need to support housing for the employees. Over the years the Town has taken a wide range of approaches to addressing its employee housing needs, including “buying down” homes for purchase by Town of Vail employees. The Pitkin Creek home is different from other homes recently purchased by the Town of Vail in that it is a larger-sized home. Given its size, the home is best suited for a small or growing family. The home is a +/- 1,146 square foot, furnished, two bedroom with loft/two bathroom, end unit with convenient access to recreation and to free Town of Vail public transit. It is located immediately adjacent to the East Vail Market. The home includes surface parking for two vehicles. Monthly association dues are approximately $579 and include electric heat, water, waste disposal and recycling, snow removal, common area maintenance, and common area insurance. The home is under contract for sale at $975,000, subject to Vail Town Council authorization to fund the purchase. List price was $1,200,000. A similar home in the Pitkin Creek Condominium development recently closed for $1,100,000. Town of Vail files indicate the property was developed in the early 1980’s. A previous deed- restriction on the property has since expired. The home has been remodeled and updated from its original condition. An initial inspection of the property has been completed with no apparent issues. The property is being offered for sale “as is”. If acquired, the home would be offered for resale to a Town of Vail employee, subject to the terms of a deed-restriction at a price of $625,000. If not purchased by a Town of Vail employee June 7, 2022 - Page 13 of 177 Town of Vail Page 2 the home would be offered for sale through a lottery sales process to a qualified resident for $675,000. 3. RECOMMENDATIONS A proposal for purchase has been prepared with participation and collaboration with several Town of Vail Departments, including administration, finance, public works, human resources and housing. The proposal for purchase recommends the following: 1) Authorize the appropriations of funds necessary to acquire the home for $975,000, plus closing costs. 4) Record a primary residence deed-restriction and a Town of Vail first option of purchase on the home. 5) Funding for the initial purchase would likely come from the Town’s capital fund (TBD). However, if sold to a qualifying community resident, the funds would likely come the Vail InDEED fund. 6) Closing will occur on or about June 16, 2022. 7) Total amount requested is $975,000, plus closing costs. 4. NEXT STEPS If authorized, the Town staff will proceed forward with the next steps outlined in the contract for purchase of the residential property. Closing and possession is presently set for June 16, 2022. 5. ACTION REQUESTED Does the Vail Town Council authorize the appropriation of the funds necessary to facilitate the Town’s purchase of Pitkin Creek Condominium, Unit 12-L, 4061 Bighorn Road, Vail, Colorado, consistent with the recommendation outlined herein? 6. EXHIBITS Exhibit A Contract to Buy and Sell Real Estate June 7, 2022 - Page 14 of 177 Resolution No. 28, Series of 2019 RESOLUTION NO. 29 SERIES OF 2022 A RESOLUTION APPROVING THE PURCHASE OF THE RESIDENTIAL PROPERTY KNOWN AS PITKIN CREEK CONDOMINIUM, UNIT 12-L, 4061 BIGHORN ROAD, VAIL, COLORADO 81657 WHEREAS, Monique Arsenault NKA Monique Arsenault Vormohr and Deena Arsenault NKA Deena Olivio (“Seller”) owns the real property more particularly described and depicted in the Contract to Buy and Sell Estate, attached hereto as Exhibit A and incorporated herein by this reference (the "Property"); and WHEREAS, the Town wishes to purchase the Property subject to the terms of the Contract to Buy and Sell Real Estate (the “Contract”); NOW, THEREFORE, be it resolved by the Town Council of the Town of Vail, Colorado: Section 1. The Town Council hereby approves the Contract and authorizes the Town Manager to execute the Contract on behalf of the Town in substantially the same form attached hereto as Exhibit A and in a form approved by the Town Attorney. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, READ, APPROVED AND ADOPTED this 7th day of June, 2022 ________________________________ Kimberly Langmaid, Mayor ATTEST: _________________________________ Tammy Nagel, Town Clerk June 7, 2022 - Page 15 of 177 Resolution No. 28, Series of 2019 June 7, 2022 - Page 16 of 177 Date: 5/19/2022 Berkshire Hathaway HomeServices Colorado Properties Danean Boukather Ph: 970-476-2482 Fax: 970-476-6499 The printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate Commission. (CBS1-6-21) (Mandatory 1-22) THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) AGREEMENT 1. AGREEMENT. Buyer agrees to buy and Seller agrees to sell the Property described below on the terms and conditions set forth in this contract (Contract). 2. PARTIES AND PROPERTY. 2.1. Buyer. Town Of Vail (Buyer) will take title to the Property described below as Joint Tenants Tenants In Common Other TBD. 2.2. No Assignability. This Contract IS NOT assignable by Buyer unless otherwise specified in Additional Provisions. 2.3. Seller. Monique Arsenault NKA Monique Arsenault Vormohr and Deena Arsenault NKA Deena Olivolo (Seller) is the current owner of the Property described below. 2.4. Property. The Property is the following legally described real estate in the County of Eagle, Colorado (insert legal description): PHASE III Subdivision: PITKIN CREEK PARK Unit: 12-L known as: 4061 Bighorn Road, 12-L Vail, CO 81657 together with the interests, easements, rights, benefits, improvements and attached fixtures appurtenant thereto and all interest of Seller in vacated streets and alleys adjacent thereto, except as herein excluded (Property). 2.5. Inclusions. The Purchase Price includes the following items (Inclusions): 2.5.1. Inclusions – Attached. If attached to the Property on the date of this Contract, the following items are included unless excluded under Exclusions: lighting, heating, plumbing, ventilating and air conditioning units, TV antennas, inside telephone, network and coaxial (cable) wiring and connecting blocks/jacks, plants, mirrors, floor coverings, intercom systems, built-in kitchen appliances, sprinkler systems and controls, built-in vacuum systems (including accessories) and garage door openers (including n/a remote controls). If checked, the following are owned by the Seller and included: Solar Panels Water Softeners Security Systems Satellite Systems (including satellite dishes). Leased items should be listed under § 2.5.7. (Leased Items). If any additional items are attached to the Property after the date of this Contract, such additional items are also included in the Purchase Price. 2.5.2. Inclusions – Not Attached. If on the Property, whether attached or not, on the date of this Contract, the following items are included unless excluded under Exclusions: storm windows, storm doors, window and porch shades, awnings, blinds, screens, window coverings and treatments, curtain rods, drapery rods, fireplace inserts, fireplace screens, fireplace grates, heating stoves, storage sheds, carbon monoxide alarms, smoke/fire detectors and all keys. 2.5.3. Other Inclusions. The following items, whether fixtures or personal property, are also CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 1 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 17 of 177 included in the Purchase Price: Built-In Gas Oven; Dishwasher; Disposal; Microwave; Range; Refrigerator; Washer/Dryer. If the box is checked, Buyer and Seller have concurrently entered into a separate agreement for additional personal property outside of this Contract. 2.5.4. Encumbered Inclusions. Any Inclusions owned by Seller (e.g., owned solar panels) must be conveyed at Closing by Seller free and clear of all taxes (except personal property and general real estate taxes for the year of Closing), liens and encumbrances, except: n/a 2.5.5. Personal Property Conveyance. Conveyance of all personal property will be by bill of sale or other applicable legal instrument. 2.5.6. Parking and Storage Facilities. The use or ownership of the following parking facilities: one assigned parking space per Association Documents.; and the use or ownership of the following storage facilities: n/a Note to Buyer: If exact rights to the parking and storage facilities is a concern to Buyer, Buyer should investigate. 2.5.7. Leased Items. The following personal property is currently leased to Seller which will be transferred to Buyer at Closing (Leased Items): n/a 2.6. Exclusions. The following items are excluded (Exclusions): Personal property, patio furniture & pictures. 2.7. Water Rights/Well Rights. 2.7.1. Deeded Water Rights. The following legally described water rights: n/a Any deeded water rights will be conveyed by a good and sufficient n/a deed at Closing. 2.7.2. Other Rights Relating to Water. The following rights relating to water not included in §§ 2.7.1., 2.7.3. and 2.7.4., will be transferred to Buyer at Closing: n/a 2.7.3. Well Rights. Seller agrees to supply required information to Buyer about the well. Buyer understands that if the well to be transferred is a “Small Capacity Well” or a “Domestic Exempt Water Well” used for ordinary household purposes, Buyer must, prior to or at Closing, complete a Change in Ownership form for the well. If an existing well has not been registered with the Colorado Division of Water Resources in the Department of Natural Resources (Division), Buyer must complete a registration of existing well form for the well and pay the cost of registration. If no person will be providing a closing service in connection with the transaction, Buyer must file the form with the Division within sixty days after Closing. The Well Permit # is n/a. 2.7.4. Water Stock Certificates. The water stock certificates to be transferred at Closing are as follows: n/a 2.7.5. Conveyance. If Buyer is to receive any rights to water pursuant to § 2.7.2. (Other Rights Relating to Water), § 2.7.3. (Well Rights), or § 2.7.4. (Water Stock Certificates), Seller agrees to convey such rights to Buyer by executing the applicable legal instrument at Closing. 2.7.6. Water Rights Review. Buyer Does Does Not have a Right to Terminate if examination of the Water Rights is unsatisfactory to Buyer on or before the Water Rights Examination Deadline. 3. DATES, DEADLINES AND APPLICABILITY. 3.1. Dates and Deadlines. Item No.Reference Event Date or Deadline 1 § 3 Time of Day Deadline n/a CBS1-6-21. 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June 7, 2022 - Page 18 of 177 Monday Friday Monday Friday Tuesday Monday Wednesday Monday Friday Tuesday Friday Monday 2 § 4 Alternative Earnest Money Deadline 5 Day`s after MEC Title 3 § 8 Record Title Deadline (and Tax Certificate)5/30/2022 4 § 8 Record Title Objection Deadline 6/3/2022 5 § 8 Off-Record Title Deadline 5/30/2022 6 § 8 Off-Record Title Objection Deadline 6/3/2022 7 § 8 Title Resolution Deadline 6/7/2022 8 § 8 Third Party Right to Purchase/Approve Deadline Owners' Association 9 § 7 Association Documents Deadline 5/30/2022 10 § 7 Association Documents Termination Deadline 6/1/2022 Seller's Disclosures 11 § 10 Seller’s Property Disclosure Deadline 5/30/2022 12 § 10 Lead-Based Paint Disclosure Deadline Loan and Credit 13 § 5 New Loan Application Deadline n/a 14 § 5 New Loan Terms Deadline n/a 15 § 5 New Loan Availability Deadline n/a 16 § 5 Buyer’s Credit Information Deadline n/a 17 § 5 Disapproval of Buyer’s Credit Information Deadline n/a 18 § 5 Existing Loan Deadline n/a 19 § 5 Existing Loan Termination Deadline n/a 20 § 5 Loan Transfer Approval Deadline n/a 21 § 4 Seller or Private Financing Deadline n/a Appraisal 22 § 6 Appraisal Deadline n/a 23 § 6 Appraisal Objection Deadline n/a 24 § 6 Appraisal Resolution Deadline n/a Survey 25 § 9 New ILC or New Survey Deadline n/a 26 § 9 New ILC or New Survey Objection Deadline n/a 27 § 9 New ILC or New Survey Resolution Deadline n/a Inspection and Due diligence 28 § 2 Water Rights Examination Deadline n/a 29 § 8 Mineral Rights Examination Deadline n/a 30 § 10 Inspection Termination Deadline 6/3/2022 31 § 10 Inspection Objection Deadline 5/31/2022 32 § 10 Inspection Resolution Deadline 33 § 10 Property Insurance Termination Deadline 6/3/2022 34 § 10 Due Diligence Documents Delivery Deadline 5/30/2022 CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 3 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 19 of 177 Monday Wednesday Thursday Thursday Tuesday 975,000.00 50,000.00 35 § 10 Due Diligence Documents Objection Deadline 6/6/2022 36 § 10 Due Diligence Documents Resolution Deadline 6/8/2022 37 § 10 Conditional Sale Deadline n/a 38 § 10 Lead-Based Paint Termination Deadline n/a Closing and Possession 39 § 12 Closing Date 6/16/2022 40 § 17 Possession Date 6/16/2022 41 § 17 Possession Time Delevery of deed 42 § 27 Acceptance Deadline Date 5/24/2022 43 § 27 Acceptance Deadline Time 5:00 PM(MST) 44 n/a n/a n/a 45 n/a n/a n/a Note: If FHA or VA loan boxes are checked in § 4.5.3. (Loan Limitations), the Appraisal deadlines DO NOT apply to FHA insured or VA guaranteed loans. 3.2. Applicability of Terms. If any deadline blank in § 3.1. (Dates and Deadlines) is left blank or completed with “N/A”, or the word “Deleted,” such deadline is not applicable and the corresponding provision containing the deadline is deleted. Any box checked in this Contract means the corresponding provision applies. If no box is checked in a provision that contains a selection of “None”, such provision means that “None” applies. The abbreviation “MEC” (mutual execution of this Contract) means the date upon which both parties have signed this Contract. The abbreviation “N/A” as used in this Contract means not applicable. 3.3. Day; Computation of Period of Days; Deadlines. 3.3.1. Day. As used in this Contract, the term “day” means the entire day ending at 11:59 p.m., United States Mountain Time (Standard or Daylight Savings, as applicable). Except however, if a Time of Day Deadline is specified in § 3.1. (Dates and Deadlines), all Objection Deadlines, Resolution Deadlines, Examination Deadlines and Termination Deadlines will end on the specified deadline date at the time of day specified in the Time of Day Deadline, United States Mountain Time. If Time of Day Deadline is left blank or “N/A” the deadlines will expire at 11:59 p.m., United States Mountain Time. 3.3.2. Computation of Period of Days. In computing a period of days (e.g., three days after MEC), when the ending date is not specified, the first day is excluded and the last day is included. 3.3.3. Deadlines. If any deadline falls on a Saturday, Sunday or federal or Colorado state holiday (Holiday), such deadline Will Will Not be extended to the next day that is not a Saturday, Sunday or Holiday. Should neither box be checked, the deadline will not be extended. 4. PURCHASE PRICE AND TERMS. 4.1. Price and Terms. The Purchase Price set forth below is payable in U.S. Dollars by Buyer as follows: Item No.Reference Item Amount Amount 1 § 4.1.Purchase Price $ 2 § 4.3.Earnest Money $ 3 § 4.5.New Loan $ 4 § 4.6.Assumption Balance $ 5 § 4.7.Private Financing $ 6 § 4.7.Seller Financing $ CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 4 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 20 of 177 925,000.00 975,000.00 975,000.00 7 n/a n/a $ 8 n/a n/a $ 9 § 4.4.Cash at Closing $ 10 Total $$ 4.2. Seller Concession. At Closing, Seller will credit to Buyer $none (Seller Concession). The Seller Concession may be used for any Buyer fee, cost, charge or expenditure to the extent the amount is allowed by the Buyer’s lender and is included in the Closing Statement or Closing Disclosure at Closing. Examples of allowable items to be paid for by the Seller Concession include, but are not limited to: Buyer’s closing costs, loan discount points, loan origination fees, prepaid items and any other fee, cost, charge, expense or expenditure. Seller Concession is in addition to any sum Seller has agreed to pay or credit Buyer elsewhere in this Contract. 4.3. Earnest Money. The Earnest Money set forth in this Section, in the form of a Wire transfer, will be payable to and held by Sellers choice of Title Company (Earnest Money Holder), in its trust account, on behalf of both Seller and Buyer. The Earnest Money deposit must be tendered, by Buyer, with this Contract unless the parties mutually agree to an Alternative Earnest Money Deadline for its payment. The parties authorize delivery of the Earnest Money deposit to the company conducting the Closing (Closing Company), if any, at or before Closing. In the event Earnest Money Holder has agreed to have interest on Earnest Money deposits transferred to a fund established for the purpose of providing affordable housing to Colorado residents, Seller and Buyer acknowledge and agree that any interest accruing on the Earnest Money deposited with the Earnest Money Holder in this transaction will be transferred to such fund. 4.3.1. Alternative Earnest Money Deadline. The deadline for delivering the Earnest Money, if other than at the time of tender of this Contract, is as set forth as the Alternative Earnest Money Deadline. 4.3.2. Disposition of Earnest Money. If Buyer has a Right to Terminate and timely terminates, Buyer is entitled to the return of Earnest Money as provided in this Contract. If this Contract is terminated as set forth in § 24 and, except as provided in § 23 (Earnest Money Dispute), if the Earnest Money has not already been returned following receipt of a Notice to Terminate, Seller agrees to execute and return to Buyer or Broker working with Buyer, written mutual instructions (e.g., Earnest Money Release form), within three days of Seller’s receipt of such form. If Seller is entitled to the Earnest Money, and, except as provided in § 23 (Earnest Money Dispute), if the Earnest Money has not already been paid to Seller, following receipt of an Earnest Money Release form, Buyer agrees to execute and return to Seller or Broker working with Seller, written mutual instructions (e.g., Earnest Money Release form), within three days of Buyer’s receipt. 4.3.2.1. Seller Failure to Timely Return Earnest Money. If Seller fails to timely execute and return the Earnest Money Release Form, or other written mutual instructions, Seller is in default and liable to Buyer as set forth in “If Seller is in Default”, § 20.2. and § 21, unless Seller is entitled to the Earnest Money due to a Buyer default. 4.3.2.2. Buyer Failure to Timely Release Earnest Money. If Buyer fails to timely execute and return the Earnest Money Release Form, or other written mutual instructions, Buyer is in default and liable to Seller as set forth in “If Buyer is in Default, § 20.1. and § 21, unless Buyer is entitled to the Earnest Money due to a Seller Default. 4.4. Form of Funds; Time of Payment; Available Funds. 4.4.1. Good Funds. All amounts payable by the parties at Closing, including any loan proceeds, Cash at Closing and closing costs, must be in funds that comply with all applicable Colorado laws, including electronic transfer funds, certified check, savings and loan teller’s check and cashier’s check (Good Funds). 4.4.2. Time of Payment. All funds, including the Purchase Price to be paid by Buyer, must be paid before or at Closing or as otherwise agreed in writing between the parties to allow disbursement by Closing Company at Closing OR SUCH NONPAYING PARTY WILL BE IN DEFAULT. 4.4.3. Available Funds. Buyer represents that Buyer, as of the date of this Contract, Does Does Not have funds that are immediately verifiable and available in an amount not less than the amount stated as Cash at Closing in § 4.1. 4.5. New Loan. (Omitted as inapplicable) CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 5 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 21 of 177 4.6. Assumption. (Omitted as inapplicable) 4.7. Seller or Private Financing. (Omitted as inapplicable) TRANSACTION PROVISIONS 5. FINANCING CONDITIONS AND OBLIGATIONS. (Omitted as inapplicable) 5.3. Credit Information. (Omitted as inapplicable) 5.4. Existing Loan Review. (Omitted as inapplicable) 6. APPRAISAL PROVISIONS. 6.1. Appraisal Definition. An “Appraisal” is an opinion of value prepared by a licensed or certified appraiser, engaged on behalf of Buyer or Buyer’s lender, to determine the Property’s market value (Appraised Value). The Appraisal may also set forth certain lender requirements, replacements, removals or repairs necessary on or to the Property as a condition for the Property to be valued at the Appraised Value. 6.2. Appraised Value. The applicable appraisal provision set forth below applies to the respective loan type set forth in § 4.5.3., or if a cash transaction (i.e., no financing), § 6.2.1. applies. 6.2.1. Conventional/Other. Buyer has the right to obtain an Appraisal. If the Appraised Value is less than the Purchase Price, or if the Appraisal is not received by Buyer on or before Appraisal Deadline Buyer may, on or before Appraisal Objection Deadline: 6.2.1.1. Notice to Terminate. Notify Seller in writing, pursuant to § 24.1., that this Contract is terminated; or 6.2.1.2. Appraisal Objection. Deliver to Seller a written objection accompanied by either a copy of the Appraisal or written notice from lender that confirms the Appraised Value is less than the Purchase Price (Lender Verification). 6.2.1.3. Appraisal Resolution. If an Appraisal Objection is received by Seller, on or before Appraisal Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Appraisal Resolution Deadline, this Contract will terminate on the Appraisal Resolution Deadline, unless Seller receives Buyer’s written withdrawal of the Appraisal Objection before such termination, (i.e., on or before expiration of Appraisal Resolution Deadline). 6.2.2. FHA. It is expressly agreed that, notwithstanding any other provisions of this Contract, the purchaser (Buyer) shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of Earnest Money deposits or otherwise unless the purchaser (Buyer) has been given, in accordance with HUD/FHA or VA requirements, a written statement issued by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender, setting forth the appraised value of the Property of not less than $n/a. The purchaser (Buyer) shall have the privilege and option of proceeding with the consummation of this Contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. The purchaser (Buyer) should satisfy himself/herself/themselves that the price and condition of the Property are acceptable. 6.2.3. VA. It is expressly agreed that, notwithstanding any other provisions of this Contract, the purchaser (Buyer) shall not incur any penalty by forfeiture of Earnest Money or otherwise or be obligated to complete the purchase of the Property described herein, if the Contract Purchase Price or cost exceeds the reasonable value of the Property established by the Department of Veterans Affairs. The purchaser (Buyer) shall, however, have the privilege and option of proceeding with the consummation of this Contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs. 6.3. Lender Property Requirements. If the lender imposes any written requirements, replacements, removals or repairs, including any specified in the Appraisal (Lender Property Requirements) to be made to the Property (e.g., roof repair, repainting), beyond those matters already agreed to by Seller in this Contract, this Contract terminates on the earlier of three days following Seller’s receipt of the Lender Property CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 6 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 22 of 177 Requirements, or Closing, unless prior to termination: (1) the parties enter into a written agreement to satisfy the Lender Property Requirements; (2) the Lender Property Requirements have been completed; or (3) the satisfaction of the Lender Property Requirements is waived in writing by Buyer. 6.4. Cost of Appraisal. Cost of the Appraisal to be obtained after the date of this Contract must be timely paid by Buyer Seller. The cost of the Appraisal may include any and all fees paid to the appraiser, appraisal management company, lender’s agent or all three. 7. OWNERS’ ASSOCIATIONS. This Section is applicable if the Property is located within one or more Common Interest Communities and subject to one or more declarations (Association). 7.1. Common Interest Community Disclosure. THE PROPERTY IS LOCATED WITHIN A COMMON INTEREST COMMUNITY AND IS SUBJECT TO THE DECLARATION FOR THE COMMUNITY. THE OWNER OF THE PROPERTY WILL BE REQUIRED TO BE A MEMBER OF THE OWNERS’ ASSOCIATION FOR THE COMMUNITY AND WILL BE SUBJECT TO THE BYLAWS AND RULES AND REGULATIONS OF THE ASSOCIATION. THE DECLARATION, BYLAWS AND RULES AND REGULATIONS WILL IMPOSE FINANCIAL OBLIGATIONS UPON THE OWNER OF THE PROPERTY, INCLUDING AN OBLIGATION TO PAY ASSESSMENTS OF THE ASSOCIATION. IF THE OWNER DOES NOT PAY THESE ASSESSMENTS, THE ASSOCIATION COULD PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL IT TO PAY THE DEBT. THE DECLARATION, BYLAWS AND RULES AND REGULATIONS OF THE COMMUNITY MAY PROHIBIT THE OWNER FROM MAKING CHANGES TO THE PROPERTY WITHOUT AN ARCHITECTURAL REVIEW BY THE ASSOCIATION (OR A COMMITTEE OF THE ASSOCIATION) AND THE APPROVAL OF THE ASSOCIATION. PURCHASERS OF PROPERTY WITHIN THE COMMON INTEREST COMMUNITY SHOULD INVESTIGATE THE FINANCIAL OBLIGATIONS OF MEMBERS OF THE ASSOCIATION. PURCHASERS SHOULD CAREFULLY READ THE DECLARATION FOR THE COMMUNITY AND THE BYLAWS AND RULES AND REGULATIONS OF THE ASSOCIATION. 7.2. Association Documents to Buyer. Seller is obligated to provide to Buyer the Association Documents (defined below), at Seller’s expense, on or before Association Documents Deadline. Seller authorizes the Association to provide the Association Documents to Buyer, at Seller’s expense. Seller’s obligation to provide the Association Documents is fulfilled upon Buyer’s receipt of the Association Documents, regardless of who provides such documents. 7.3. Association Documents. Association documents (Association Documents) consist of the following: 7.3.1. All Association declarations, articles of incorporation, bylaws, articles of organization, operating agreements, rules and regulations, party wall agreements and the Association’s responsible governance policies adopted under § 38-33.3-209.5, C.R.S.; 7.3.2. Minutes of: (1) the annual owners’ or members’ meeting and (2) any executive boards’ or managers’ meetings; such minutes include those provided under the most current annual disclosure required under § 38-33.3-209.4, C.R.S. (Annual Disclosure) and minutes of meetings, if any, subsequent to the minutes disclosed in the Annual Disclosure. If none of the preceding minutes exist, then the most recent minutes, if any (§§ 7.3.1. and 7.3.2., collectively, Governing Documents); and 7.3.3. List of all Association insurance policies as provided in the Association’s last Annual Disclosure, including, but not limited to, property, general liability, association director and officer professional liability and fidelity policies. The list must include the company names, policy limits, policy deductibles, additional named insureds and expiration dates of the policies listed (Association Insurance Documents); 7.3.4. A list by unit type of the Association’s assessments, including both regular and special assessments as disclosed in the Association’s last Annual Disclosure; 7.3.5. The Association’s most recent financial documents which consist of: (1) the Association’s operating budget for the current fiscal year, (2) the Association’s most recent annual financial statements, including any amounts held in reserve for the fiscal year immediately preceding the Association’s last Annual Disclosure, (3) the results of the Association’s most recent available financial audit or review, (4) list of the fees and charges (regardless of name or title of such fees or charges) that the Association’s community association manager or Association will charge in connection with the Closing including, but not limited to, CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 7 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 23 of 177 any fee incident to the issuance of the Association’s statement of assessments (Status Letter), any rush or update fee charged for the Status Letter, any record change fee or ownership record transfer fees (Record Change Fee), fees to access documents, (5) list of all assessments required to be paid in advance, reserves or working capital due at Closing and (6) reserve study, if any (§§ 7.3.4. and 7.3.5., collectively, Financial Documents); 7.3.6. Any written notice from the Association to Seller of a “construction defect action” under § 38-33.3-303.5, C.R.S. within the past six months and the result of whether the Association approved or disapproved such action (Construction Defect Documents). Nothing in this Section limits the Seller’s obligation to disclose adverse material facts as required under § 10.2. (Disclosure of Adverse Material Facts; Subsequent Disclosure; Present Condition) including any problems or defects in the common elements or limited common elements of the Association property. 7.4. Conditional on Buyer’s Review. Buyer has the right to review the Association Documents. Buyer has the Right to Terminate under § 24.1., on or before Association Documents Termination Deadline, based on any unsatisfactory provision in any of the Association Documents, in Buyer’s sole subjective discretion. Should Buyer receive the Association Documents after Association Documents Deadline, Buyer, at Buyer’s option, has the Right to Terminate under § 24.1. by Buyer’s Notice to Terminate received by Seller on or before ten days after Buyer’s receipt of the Association Documents. If Buyer does not receive the Association Documents, or if Buyer’s Notice to Terminate would otherwise be required to be received by Seller after Closing Date, Buyer’s Notice to Terminate must be received by Seller on or before Closing. If Seller does not receive Buyer’s Notice to Terminate within such time, Buyer accepts the provisions of the Association Documents as satisfactory and Buyer waives any Right to Terminate under this provision, notwithstanding the provisions of § 8.6. (Third Party Right to Purchase/Approve). 8. TITLE INSURANCE, RECORD TITLE AND OFF-RECORD TITLE. 8.1. Evidence of Record Title. 8.1.1. Seller Selects Title Insurance Company. If this box is checked, Seller will select the title insurance company to furnish the owner’s title insurance policy at Seller’s expense. On or before Record Title Deadline, Seller must furnish to Buyer, a current commitment for an owner’s title insurance policy (Title Commitment), in an amount equal to the Purchase Price, or if this box is checked, an Abstract of Title certified to a current date. Seller will cause the title insurance policy to be issued and delivered to Buyer as soon as practicable at or after Closing. 8.1.2. Buyer Selects Title Insurance Company. If this box is checked, Buyer will select the title insurance company to furnish the owner’s title insurance policy at Buyer’s expense. On or before Record Title Deadline, Buyer must furnish to Seller, a current commitment for owner’s title insurance policy (Title Commitment), in an amount equal to the Purchase Price. If neither box in § 8.1.1. or § 8.1.2. is checked, § 8.1.1. applies. 8.1.3. Owner’s Extended Coverage (OEC). The Title Commitment Will Will Not contain Owner’s Extended Coverage (OEC). If the Title Commitment is to contain OEC, it will commit to delete or insure over the standard exceptions which relate to: (1) parties in possession, (2) unrecorded easements, (3) survey matters, (4) unrecorded mechanics’ liens, (5) gap period (period between the effective date and time of commitment to the date and time the deed is recorded) and (6) unpaid taxes, assessments and unredeemed tax sales prior to the year of Closing. Any additional premium expense to obtain OEC will be paid by Buyer Seller One-Half by Buyer and One-Half by Seller Other n/a. Regardless of whether the Contract requires OEC, the Title Insurance Commitment may not provide OEC or delete or insure over any or all of the standard exceptions for OEC. The Title Insurance Company may require a New Survey or New ILC, defined below, among other requirements for OEC. If the Title Insurance Commitment is not satisfactory to Buyer, Buyer has a right to object under § 8.7. (Right to Object to Title, Resolution). 8.1.4. Title Documents. Title Documents consist of the following: (1) copies of any plats, declarations, covenants, conditions and restrictions burdening the Property and (2) copies of any other documents (or, if illegible, summaries of such documents) listed in the schedule of exceptions (Exceptions) in the Title Commitment furnished to Buyer (collectively, Title Documents). CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 8 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 24 of 177 8.1.5. Copies of Title Documents. Buyer must receive, on or before Record Title Deadline, copies of all Title Documents. This requirement pertains only to documents as shown of record in the office of the clerk and recorder in the county where the Property is located. The cost of furnishing copies of the documents required in this Section will be at the expense of the party or parties obligated to pay for the owner’s title insurance policy. 8.1.6. Existing Abstracts of Title. Seller must deliver to Buyer copies of any abstracts of title covering all or any portion of the Property (Abstract of Title) in Seller’s possession on or before Record Title Deadline. 8.2. Record Title. Buyer has the right to review and object to the Abstract of Title or Title Commitment and any of the Title Documents as set forth in § 8.7. (Right to Object to Title, Resolution) on or before Record Title Objection Deadline. Buyer’s objection may be based on any unsatisfactory form or content of Title Commitment or Abstract of Title, notwithstanding § 13, or any other unsatisfactory title condition, in Buyer’s sole subjective discretion. If the Abstract of Title, Title Commitment or Title Documents are not received by Buyer on or before the Record Title Deadline, or if there is an endorsement to the Title Commitment that adds a new Exception to title, a copy of the new Exception to title and the modified Title Commitment will be delivered to Buyer. Buyer has until the earlier of Closing or ten days after receipt of such documents by Buyer to review and object to: (1) any required Title Document not timely received by Buyer, (2) any change to the Abstract of Title, Title Commitment or Title Documents, or (3) any endorsement to the Title Commitment. If Seller receives Buyer’s Notice to Terminate or Notice of Title Objection, pursuant to this § 8.2. (Record Title), any title objection by Buyer is governed by the provisions set forth in § 8.7. (Right to Object to Title, Resolution). If Seller has fulfilled all Seller’s obligations, if any, to deliver to Buyer all documents required by § 8.1. (Evidence of Record Title) and Seller does not receive Buyer’s Notice to Terminate or Notice of Title Objection by the applicable deadline specified above, Buyer accepts the condition of title as disclosed by the Abstract of Title, Title Commitment and Title Documents as satisfactory. 8.3. Off-Record Title. Seller must deliver to Buyer, on or before Off-Record Title Deadline, true copies of all existing surveys in Seller’s possession pertaining to the Property and must disclose to Buyer all easements, liens (including, without limitation, governmental improvements approved, but not yet installed) or other title matters not shown by public records, of which Seller has actual knowledge (Off-Record Matters). This Section excludes any New ILC or New Survey governed under § 9 (New ILC, New Survey). Buyer has the right to inspect the Property to investigate if any third party has any right in the Property not shown by public records (e.g., unrecorded easement, boundary line discrepancy or water rights). Buyer’s Notice to Terminate or Notice of Title Objection of any unsatisfactory condition (whether disclosed by Seller or revealed by such inspection, notwithstanding § 8.2. (Record Title) and § 13 (Transfer of Title), in Buyer’s sole subjective discretion, must be received by Seller on or before Off-Record Title Objection Deadline. If an Off-Record Matter is received by Buyer after the Off-Record Title Deadline, Buyer has until the earlier of Closing or ten days after receipt by Buyer to review and object to such Off-Record Matter. If Seller receives Buyer’s Notice to Terminate or Notice of Title Objection pursuant to this § 8.3. (Off-Record Title), any title objection by Buyer is governed by the provisions set forth in § 8.7. (Right to Object to Title, Resolution). If Seller does not receive Buyer’s Notice to Terminate or Notice of Title Objection by the applicable deadline specified above, Buyer accepts title subject to such Off-Record Matters and rights, if any, of third parties not shown by public records of which Buyer has actual knowledge. 8.4. Special Taxing Districts. SPECIAL TAXING DISTRICTS MAY BE SUBJECT TO GENERAL OBLIGATION INDEBTEDNESS THAT IS PAID BY REVENUES PRODUCED FROM ANNUAL TAX LEVIES ON THE TAXABLE PROPERTY WITHIN SUCH DISTRICTS. PROPERTY OWNERS IN SUCH DISTRICTS MAY BE PLACED AT RISK FOR INCREASED MILL LEVIES AND TAX TO SUPPORT THE SERVICING OF SUCH DEBT WHERE CIRCUMSTANCES ARISE RESULTING IN THE INABILITY OF SUCH A DISTRICT TO DISCHARGE SUCH INDEBTEDNESS WITHOUT SUCH AN INCREASE IN MILL LEVIES. BUYERS SHOULD INVESTIGATE THE SPECIAL TAXING DISTRICTS IN WHICH THE PROPERTY IS LOCATED BY CONTACTING THE COUNTY TREASURER, BY REVIEWING THE CERTIFICATE OF TAXES DUE FOR THE PROPERTY AND BY OBTAINING FURTHER INFORMATION FROM THE BOARD OF COUNTY COMMISSIONERS, THE COUNTY CLERK AND RECORDER, OR THE COUNTY ASSESSOR. 8.5. Tax Certificate. A tax certificate paid for by Seller Buyer, for the Property listing any CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 9 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 25 of 177 special taxing districts that affect the Property (Tax Certificate) must be delivered to Buyer on or before Record Title Deadline. If the Property is located within a special taxing district and such inclusion is unsatisfactory to Buyer, in Buyer’s sole subjective discretion, Buyer may terminate, on or before Record Title Objection Deadline. Should Buyer receive the Tax Certificate after Record Title Deadline, Buyer, at Buyer’s option, has the Right to Terminate under § 24.1. by Buyer’s Notice to Terminate received by Seller on or before ten days after Buyer’s receipt of the Tax Certificate. If Buyer does not receive the Tax Certificate, or if Buyer’s Notice to Terminate would otherwise be required to be received by Seller after Closing Date, Buyer’s Notice to Terminate must be received by Seller on or before Closing. If Seller does not receive Buyer’s Notice to Terminate within such time, Buyer accepts the provisions of the Tax Certificate and the inclusion of the Property in a special taxing district, if applicable, as satisfactory and Buyer waives any Right to Terminate under this provision. If Buyer’s loan specified in §4.5.3. (Loan Limitations) prohibits Buyer from paying for the Tax Certificate, the Tax Certificate will be paid for by Seller. 8.6. Third Party Right to Purchase/Approve. If any third party has a right to purchase the Property (e.g., right of first refusal on the Property, right to purchase the Property under a lease or an option held by a third party to purchase the Property) or a right of a third party to approve this Contract, Seller must promptly submit this Contract according to the terms and conditions of such right. If the third-party holder of such right exercises its right this Contract will terminate. If the third party’s right to purchase is waived explicitly or expires, or the Contract is approved, this Contract will remain in full force and effect. Seller must promptly notify Buyer in writing of the foregoing. If the third party right to purchase is exercised or approval of this Contract has not occurred on or before Third Party Right to Purchase/Approve Deadline, this Contract will then terminate. Seller will supply to Buyer, in writing, details of any Third Party Right to Purchase the Property on or before the Record Title Deadline. 8.7. Right to Object to Title, Resolution. Buyer has a right to object or terminate, in Buyer’s sole subjective discretion, based on any title matters including those matters set forth in § 8.2. (Record Title), § 8.3. (Off-Record Title), § 8.5. (Special Taxing District) and § 13 (Transfer of Title). If Buyer exercises Buyer’s rights to object or terminate based on any such title matter, on or before the applicable deadline, Buyer has the following options: 8.7.1. Title Objection, Resolution. If Seller receives Buyer’s written notice objecting to any title matter (Notice of Title Objection) on or before the applicable deadline and if Buyer and Seller have not agreed to a written settlement thereof on or before Title Resolution Deadline, this Contract will terminate on the expiration of Title Resolution Deadline, unless Seller receives Buyer’s written withdrawal of Buyer’s Notice of Title Objection (i.e., Buyer’s written notice to waive objection to such items and waives the Right to Terminate for that reason), on or before expiration of Title Resolution Deadline. If either the Record Title Deadline or the Off-Record Title Deadline, or both, are extended pursuant to § 8.2. (Record Title) or § 8.3. (Off-Record Title) the Title Resolution Deadline also will be automatically extended to the earlier of Closing or fifteen days after Buyer’s receipt of the applicable documents; or 8.7.2. Title Objection, Right to Terminate. Buyer may exercise the Right to Terminate under § 24.1., on or before the applicable deadline, based on any title matter unsatisfactory to Buyer, in Buyer’s sole subjective discretion. 8.8. Title Advisory. The Title Documents affect the title, ownership and use of the Property and should be reviewed carefully. Additionally, other matters not reflected in the Title Documents may affect the title, ownership and use of the Property, including, without limitation, boundary lines and encroachments, set-back requirements, area, zoning, building code violations, unrecorded easements and claims of easements, leases and other unrecorded agreements, water on or under the Property and various laws and governmental regulations concerning land use, development and environmental matters. 8.8.1. OIL, GAS, WATER AND MINERAL DISCLOSURE. THE SURFACE ESTATE OF THE PROPERTY MAY BE OWNED SEPARATELY FROM THE UNDERLYING MINERAL ESTATE AND TRANSFER OF THE SURFACE ESTATE MAY NOT NECESSARILY INCLUDE TRANSFER OF THE MINERAL ESTATE OR WATER RIGHTS. THIRD PARTIES MAY OWN OR LEASE INTERESTS IN OIL, GAS, OTHER MINERALS, GEOTHERMAL ENERGY OR WATER ON OR UNDER THE SURFACE OF THE PROPERTY, WHICH INTERESTS MAY GIVE THEM RIGHTS TO ENTER AND USE THE SURFACE OF THE PROPERTY TO ACCESS THE MINERAL ESTATE, OIL, GAS OR WATER. 8.8.2. SURFACE USE AGREEMENT. THE USE OF THE SURFACE ESTATE OF THE CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 10 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 26 of 177 PROPERTY TO ACCESS THE OIL, GAS OR MINERALS MAY BE GOVERNED BY A SURFACE USE AGREEMENT, A MEMORANDUM OR OTHER NOTICE OF WHICH MAY BE RECORDED WITH THE COUNTY CLERK AND RECORDER. 8.8.3. OIL AND GAS ACTIVITY. OIL AND GAS ACTIVITY THAT MAY OCCUR ON OR ADJACENT TO THE PROPERTY MAY INCLUDE, BUT IS NOT LIMITED TO, SURVEYING, DRILLING, WELL COMPLETION OPERATIONS, STORAGE, OIL AND GAS, OR PRODUCTION FACILITIES, PRODUCING WELLS, REWORKING OF CURRENT WELLS AND GAS GATHERING AND PROCESSING FACILITIES. 8.8.4. ADDITIONAL INFORMATION. BUYER IS ENCOURAGED TO SEEK ADDITIONAL INFORMATION REGARDING OIL AND GAS ACTIVITY ON OR ADJACENT TO THE PROPERTY, INCLUDING DRILLING PERMIT APPLICATIONS. THIS INFORMATION MAY BE AVAILABLE FROM THE COLORADO OIL AND GAS CONSERVATION COMMISSION. 8.8.5. Title Insurance Exclusions. Matters set forth in this Section and others, may be excepted, excluded from, or not covered by the owner’s title insurance policy. 8.9. Mineral Rights Review. Buyer Does Does Not have a Right to Terminate if examination of the Mineral Rights is unsatisfactory to Buyer on or before the Mineral Rights Examination Deadline. 9. NEW ILC, NEW SURVEY. 9.1. New ILC or New Survey. If the box is checked, (1) New Improvement Location Certificate (New ILC); or, (2) New Survey in the form of n/a; is required and the following will apply: 9.1.1. Ordering of New ILC or New Survey. Seller Buyer will order the New ILC or New Survey. The New ILC or New Survey may also be a previous ILC or survey that is in the above-required form, certified and updated as of a date after the date of this Contract. 9.1.2. Payment for New ILC or New Survey. The cost of the New ILC or New Survey will be paid, on or before Closing, by: Seller Buyer or: n/a 9.1.3. Delivery of New ILC or New Survey. Buyer, Seller, the issuer of the Title Commitment (or the provider of the opinion of title if an Abstract of Title) and n/a will receive a New ILC or New Survey on or before New ILC or New Survey Deadline. 9.1.4. Certification of New ILC or New Survey. The New ILC or New Survey will be certified by the surveyor to all those who are to receive the New ILC or New Survey. 9.2. Buyer’s Right to Waive or Change New ILC or New Survey Selection. Buyer may select a New ILC or New Survey different than initially specified in this Contract if there is no additional cost to Seller or change to the New ILC or New Survey Objection Deadline. Buyer may, in Buyer’s sole subjective discretion, waive a New ILC or New Survey if done prior to Seller incurring any cost for the same. 9.3. New ILC or New Survey Objection. Buyer has the right to review and object based on the New ILC or New Survey. If the New ILC or New Survey is not timely received by Buyer or is unsatisfactory to Buyer, in Buyer’s sole subjective discretion, Buyer may, on or before New ILC or New Survey Objection Deadline, notwithstanding § 8.3. or § 13: 9.3.1. Notice to Terminate. Notify Seller in writing, pursuant to § 24.1, that this Contract is terminated; or 9.3.2. New ILC or New Survey Objection. Deliver to Seller a written description of any matter that was to be shown or is shown in the New ILC or New Survey that is unsatisfactory and that Buyer requires Seller to correct. 9.3.3. New ILC or New Survey Resolution. If a New ILC or New Survey Objection is received by Seller, on or before New ILC or New Survey Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on or before New ILC or New Survey Resolution Deadline, this Contract will terminate on expiration of the New ILC or New Survey Resolution Deadline, unless Seller receives Buyer’s written withdrawal of the New ILC or New Survey Objection before such termination (i.e., on or before expiration of New ILC or New Survey Resolution Deadline). CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 11 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 27 of 177 DISCLOSURE, INSPECTION AND DUE DILIGENCE 10. PROPERTY DISCLOSURE, INSPECTION, INDEMNITY, INSURABILITY, DUE DILIGENCE AND SOURCE OF WATER. 10.1. Seller’s Property Disclosure. On or before Seller’s Property Disclosure Deadline , Seller agrees to deliver to Buyer the most current version of the applicable Colorado Real Estate Commission’s Seller’s Property Disclosure form completed by Seller to Seller’s actual knowledge and current as of the date of this Contract. 10.2. Disclosure of Adverse Material Facts; Subsequent Disclosure; Present Condition. Seller must disclose to Buyer any adverse material facts actually known by Seller as of the date of this Contract. Seller agrees that disclosure of adverse material facts will be in writing. In the event Seller discovers an adverse material fact after the date of this Contract, Seller must timely disclose such adverse fact to Buyer. Buyer has the Right to Terminate based on the Seller’s new disclosure on the earlier of Closing or five days after Buyer’s receipt of the new disclosure. Except as otherwise provided in this Contract, Buyer acknowledges that Seller is conveying the Property to Buyer in an “As Is” condition, “Where Is” and “With All Faults.” 10.3. Inspection. Unless otherwise provided in this Contract, Buyer, acting in good faith, has the right to have inspections (by one or more third parties, personally or both) of the Property, Leased Items, and Inclusions (Inspection), at Buyer’s expense. If (1) the physical condition of the Property, including, but not limited to, the roof, walls, structural integrity of the Property, the electrical, plumbing, HVAC and other mechanical systems of the Property, (2) the physical condition of the Inclusions and Leased Items, (3) service to the Property (including utilities and communication services), systems and components of the Property (e.g., heating and plumbing), (4) any proposed or existing transportation project, road, street or highway, or (5) any other activity, odor or noise (whether on or off the Property) and its effect or expected effect on the Property or its occupants is unsatisfactory, in Buyer’s sole subjective discretion, Buyer may: 10.3.1. Inspection Termination. On or before the Inspection Termination Deadline, notify Seller in writing, pursuant to § 24.1., that this Contract is terminated due to any unsatisfactory condition, provided the Buyer did not previously deliver an Inspection Objection. Buyer’s Right to Terminate under this provision expires upon delivery of an Inspection Objection to Seller pursuant to § 10.3.2.; or 10.3.2. Inspection Objection. On or before the Inspection Objection Deadline, deliver to Seller a written description of any unsatisfactory condition that Buyer requires Seller to correct. 10.3.3. Inspection Resolution. If an Inspection Objection is received by Seller, on or before Inspection Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution Deadline, this Contract will terminate on Inspection Resolution Deadline unless Seller receives Buyer’s written withdrawal of the Inspection Objection before such termination (i.e., on or before expiration of Inspection Resolution Deadline). Nothing in this provision prohibits the Buyer and the Seller from mutually terminating this Contract before the Inspection Resolution Deadline passes by executing an Earnest Money Release. 10.4. Damage, Liens and Indemnity. Buyer, except as otherwise provided in this Contract or other written agreement between the parties, is responsible for payment for all inspections, tests, surveys, engineering reports, or other reports performed at Buyer’s request (Work) and must pay for any damage that occurs to the Property and Inclusions as a result of such Work. Buyer must not permit claims or liens of any kind against the Property for Work performed on the Property. Buyer agrees to indemnify, protect and hold Seller harmless from and against any liability, damage, cost or expense incurred by Seller and caused by any such Work, claim, or lien. This indemnity includes Seller’s right to recover all costs and expenses incurred by Seller to defend against any such liability, damage, cost or expense, or to enforce this Section, including Seller’s reasonable attorney fees, legal fees and expenses. The provisions of this Section survive the termination of this Contract. This § 10.4. does not apply to items performed pursuant to an Inspection Resolution. 10.5. Insurability. Buyer has the Right to Terminate under § 24.1., on or before Property Insurance Termination Deadline, based on any unsatisfactory provision of the availability, terms and conditions and CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 12 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 28 of 177 premium for property insurance (Property Insurance) on the Property, in Buyer’s sole subjective discretion. 10.6. Due Diligence. 10.6.1. Due Diligence Documents. Seller agrees to deliver copies of the following documents and information pertaining to the Property and Leased Items (Due Diligence Documents) to Buyer on or before Due Diligence Documents Delivery Deadline: 10.6.1.1. Occupancy Agreements. All current leases, including any amendments or other occupancy agreements, pertaining to the Property. Those leases or other occupancy agreements pertaining to the Property that survive Closing are as follows (Leases): n/a 10.6.1.2. Leased Items Documents. If any lease of personal property (§ 2.5.7., Leased Items) will be transferred to Buyer at Closing, Seller agrees to deliver copies of the leases and information pertaining to the personal property to Buyer on or before Due Diligence Documents Delivery Deadline. Buyer Will Will Not assume the Seller’s obligations under such leases for the Leased Items (§ 2.5.7., Leased Items). 10.6.1.3. Encumbered Inclusions Documents. If any Inclusions owned by Seller are encumbered pursuant to § 2.5.4. (Encumbered Inclusions) above, Seller agrees to deliver copies of the evidence of debt, security and any other documents creating the encumbrance to Buyer on or before Due Diligence Documents Delivery Deadline. Buyer Will Will Not assume the debt on the Encumbered Inclusions (§ 2.5.4., Encumbered Inclusions). 10.6.1.4. Other Documents. Other documents and information: n/a 10.6.2. Due Diligence Documents Review and Objection. Buyer has the right to review and object based on the Due Diligence Documents. If the Due Diligence Documents are not supplied to Buyer or are unsatisfactory, in Buyer’s sole subjective discretion, Buyer may, on or before Due Diligence Documents Objection Deadline: 10.6.2.1. Notice to Terminate. Notify Seller in writing, pursuant to § 24.1., that this Contract is terminated; or 10.6.2.2. Due Diligence Documents Objection. Deliver to Seller a written description of any unsatisfactory Due Diligence Documents that Buyer requires Seller to correct. 10.6.2.3. Due Diligence Documents Resolution. If a Due Diligence Documents Objection is received by Seller, on or before Due Diligence Documents Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Due Diligence Documents Resolution Deadline, this Contract will terminate on Due Diligence Documents Resolution Deadline unless Seller receives Buyer’s written withdrawal of the Due Diligence Documents Objection before such termination (i.e., on or before expiration of Due Diligence Documents Resolution Deadline). 10.7. Conditional Upon Sale of Property. This Contract is conditional upon the sale and closing of that certain property owned by Buyer and commonly known as None. Buyer has the Right to Terminate under § 24.1. effective upon Seller’s receipt of Buyer’s Notice to Terminate on or before Conditional Sale Deadline if such property is not sold and closed by such deadline. This Section is for the sole benefit of Buyer. If Seller does not receive Buyer’s Notice to Terminate on or before Conditional Sale Deadline, Buyer waives any Right to Terminate under this provision. 10.8. Source of Potable Water (Residential Land and Residential Improvements Only). Buyer Does Does Not acknowledge receipt of a copy of Seller’s Property Disclosure or Source of Water Addendum disclosing the source of potable water for the Property. There is No Well. Buyer Does Does Not acknowledge receipt of a copy of the current well permit. Note to Buyer: SOME WATER PROVIDERS RELY, TO VARYING DEGREES, ON NONRENEWABLE GROUND WATER. YOU MAY WISH TO CONTACT YOUR PROVIDER (OR INVESTIGATE THE DESCRIBED SOURCE) TO DETERMINE THE LONG-TERM SUFFICIENCY OF THE PROVIDER’S WATER SUPPLIES. 10.9. Existing Leases; Modification of Existing Leases; New Leases. [Intentionally Deleted] 10.10. Lead-Based Paint. CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 13 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 29 of 177 10.10.1. Lead-Based Paint Disclosure. Unless exempt, if the Property includes one or more residential dwellings constructed or a building permit was issued prior to January 1, 1978, for the benefit of Buyer, Seller and all required real estate licensees must sign and deliver to Buyer a completed Lead-Based Paint Disclosure (Sales) form on or before the Lead-Based Paint Disclosure Deadline. If Buyer does not timely receive the Lead-Based Paint Disclosure, Buyer may waive the failure to timely receive the Lead-Based Paint Disclosure, or Buyer may exercise Buyer’s Right to Terminate under § 24.1. by Seller’s receipt of Buyer’s Notice to Terminate on or before the expiration of the Lead-Based Paint Termination Deadline. 10.10.2. Lead-Based Paint Assessment. If Buyer elects to conduct or obtain a risk assessment or inspection of the Property for the presence of Lead-Based Paint or Lead-Based Paint hazards, Buyer has a Right to Terminate under § 24.1. by Seller’s receipt of Buyer’s Notice to Terminate on or before the expiration of the Lead-Based Paint Termination Deadline. Buyer may elect to waive Buyer’s right to conduct or obtain a risk assessment or inspection of the Property for the presence of Lead-Based Paint or Lead-Based Paint hazards. If Seller does not receive Buyer’s Notice to Terminate within such time, Buyer accepts the condition of the Property relative to any Lead-Based Paint as satisfactory and Buyer waives any Right to Terminate under this provision. 10.11. Carbon Monoxide Alarms. Note: If the improvements on the Property have a fuel-fired heater or appliance, a fireplace, or an attached garage and include one or more rooms lawfully used for sleeping purposes (Bedroom), the parties acknowledge that Colorado law requires that Seller assure the Property has an operational carbon monoxide alarm installed within fifteen feet of the entrance to each Bedroom or in a location as required by the applicable building code. 10.12. Methamphetamine Disclosure. If Seller knows that methamphetamine was ever manufactured, processed, cooked, disposed of, used or stored at the Property, Seller is required to disclose such fact. No disclosure is required if the Property was remediated in accordance with state standards and other requirements are fulfilled pursuant to § 25-18.5-102, C.R.S., Buyer further acknowledges that Buyer has the right to engage a certified hygienist or industrial hygienist to test whether the Property has ever been used as a methamphetamine laboratory. Buyer has the Right to Terminate under § 24.1., upon Seller’s receipt of Buyer’s written Notice to Terminate, notwithstanding any other provision of this Contract, based on Buyer’s test results that indicate the Property has been contaminated with methamphetamine, but has not been remediated to meet the standards established by rules of the State Board of Health promulgated pursuant to § 25-18.5-102, C.R.S. Buyer must promptly give written notice to Seller of the results of the test. 11. TENANT ESTOPPEL STATEMENTS. [Intentionally Deleted] Closing Provisions 12. CLOSING DOCUMENTS, INSTRUCTIONS AND CLOSING. 12.1. Closing Documents and Closing Information. Seller and Buyer will cooperate with the Closing Company to enable the Closing Company to prepare and deliver documents required for Closing to Buyer and Seller and their designees. If Buyer is obtaining a loan to purchase the Property, Buyer acknowledges Buyer’s lender is required to provide the Closing Company, in a timely manner, all required loan documents and financial information concerning Buyer’s loan. Buyer and Seller will furnish any additional information and documents required by Closing Company that will be necessary to complete this transaction. Buyer and Seller will sign and complete all customary or reasonably required documents at or before Closing. 12.2. Closing Instructions. Colorado Real Estate Commission’s Closing Instructions Are Are Not executed with this Contract. 12.3. Closing. Delivery of deed from Seller to Buyer will be at closing (Closing). Closing will be on the date specified as the Closing Date or by mutual agreement at an earlier date. At Closing, Seller agrees to deliver a set of keys for the Property to Buyer. The hour and place of Closing will be as designated by Title Company. CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 14 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 30 of 177 12.4. Disclosure of Settlement Costs. Buyer and Seller acknowledge that costs, quality and extent of service vary between different settlement service providers (e.g., attorneys, lenders, inspectors and title companies). 12.5. Assignment of Leases. Seller must assign to Buyer all Leases at Closing that will continue after Closing and Buyer must assume Seller’s obligations under such Leases. Further, Seller must transfer to Buyer all Leased Items and assign to Buyer such leases for the Leased Items accepted by Buyer pursuant to § 2.5.7. (Leased Items). 13. TRANSFER OF TITLE. Subject to Buyer’s compliance with the terms and provisions of this Contract, including the tender of any payment due at Closing, Seller must execute and deliver the following good and sufficient deed to Buyer, at Closing: special warranty deed general warranty deed bargain and sale deed quit claim deed personal representative’s deed n/a deed. Seller, provided another deed is not selected, must execute and deliver a good and sufficient special warranty deed to Buyer, at Closing. Unless otherwise specified in § 29 (Additional Provisions), if title will be conveyed using a special warranty deed or a general warranty deed, title will be conveyed “subject to statutory exceptions” as defined in §38-30-113(5)(a), C.R.S. 14. PAYMENT OF LIENS AND ENCUMBRANCES. Unless agreed to by Buyer in writing, any amounts owed on any liens or encumbrances securing a monetary sum against the Property and Inclusions, including any governmental liens for special improvements installed as of the date of Buyer’s signature hereon, whether assessed or not, and previous years’ taxes, will be paid at or before Closing by Seller from the proceeds of this transaction or from any other source. 15. CLOSING COSTS, FEES, ASSOCIATION STATUS LETTER AND DISBURSEMENTS, TAXES AND WITHHOLDING. 15.1. Closing Costs. Buyer and Seller must pay, in Good Funds, their respective closing costs and all other items required to be paid at Closing, except as otherwise provided herein. However, if Buyer’s loan specified in §4.5.3. (Loan Limitations) prohibits Buyer from paying for any of the fees contained in this Section, the fees will be paid for by Seller. 15.2. Closing Services Fee. The fee for real estate closing services must be paid at Closing by Buyer Seller One-Half by Buyer and One-Half by Seller Other n/a. 15.3. Association Fees and Required Disbursements. At least fourteen days prior to Closing Date, Seller agrees to promptly request that the Closing Company or the Association deliver to Buyer a current Status Letter, if applicable. Any fees associated with or specified in the Status Letter will be paid as follows: 15.3.1. Status Letter Fee. Any fee incident to the issuance of Association’s Status Letter must be paid by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 15.3.2. Record Change Fee. Any Record Change Fee must be paid by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 15.3.3. Assessments, Reserves or Working Capital. All assessments required to be paid in advance (other than Association Assessments as defined in § 16.2. (Association Assessments), reserves or working capital due at Closing must be paid by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 15.3.4. Other Fees. Any other fee listed in the Status Letter as required to be paid at Closing will be paid by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 15.4. Local Transfer Tax. Any Local Transfer Tax must be paid at Closing by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 15.5. Sales and Use Tax. Any sales and use tax that may accrue because of this transaction must be paid when due by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 15.6. Private Transfer Fee. Any private transfer fees and other fees due to a transfer of the Property, payable at Closing, such as community association fees, developer fees and foundation fees, must be paid at Closing by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 15 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 31 of 177 15.7. Water Transfer Fees. Water Transfer Fees can change. The fees, as of the date of this Contract, do not exceed $100.00 for: Water Stock/Certificates Water District Augmentation Membership Small Domestic Water Company n/a and must be paid at Closing by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 15.8. Utility Transfer Fees. Utility transfer fees can change. Any fees to transfer utilities from Seller to Buyer must be paid by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 15.9. FIRPTA and Colorado Withholding. 15.9.1. FIRPTA. The Internal Revenue Service (IRS) may require a substantial portion of the Seller’s proceeds be withheld after Closing when Seller is a foreign person. If required withholding does not occur, the Buyer could be held liable for the amount of the Seller’s tax, interest and penalties. If the box in this Section is checked, Seller represents that Seller IS a foreign person for purposes of U.S. income taxation. If the box in this Section is not checked, Seller represents that Seller is not a foreign person for purposes of U.S. income taxation. Seller agrees to cooperate with Buyer and Closing Company to provide any reasonably requested documents to verify Seller’s foreign person status. If withholding is required, Seller authorizes Closing Company to withhold such amount from Seller’s proceeds. Seller should inquire with Seller’s tax advisor to determine if withholding applies or if an exemption exists. 15.9.2. Colorado Withholding. The Colorado Department of Revenue may require a portion of the Seller’s proceeds be withheld after Closing when Seller will not be a Colorado resident after Closing, if not otherwise exempt. Seller agrees to cooperate with Buyer and Closing Company to provide any reasonably requested documents to verify Seller’s status. If withholding is required, Seller authorizes Closing Company to withhold such amount from Seller’s proceeds. Seller should inquire with Seller’s tax advisor to determine if withholding applies or if an exemption exists. 16. PRORATIONS AND ASSOCIATION ASSESSMENTS. 16.1. Prorations. The following will be prorated to the Closing Date, except as otherwise provided: 16.1.1. Taxes. Personal property taxes, if any, special taxing district assessments, if any, and general real estate taxes for the year of Closing, based on Taxes for the Calendar Year Immediately Preceding Closing Most Recent Mill Levy and Most Recent Assessed Valuation, adjusted by any applicable qualifying seniors property tax exemption, qualifying disabled veteran exemption or Other n/a 16.1.2. Rents. Rents based on Rents Actually Received Accrued. At Closing, Seller will transfer or credit to Buyer the security deposits for all Leases assigned to Buyer, or any remainder after lawful deductions, and notify all tenants in writing of such transfer and of the transferee’s name and address. 16.1.3. Other Prorations. Water and sewer charges, propane, interest on continuing loan and n/a 16.1.4. Final Settlement. Unless otherwise specified in Additional Provisions, these prorations are final. 16.2. Association Assessments. Current regular Association assessments and dues (Association Assessments) paid in advance will be credited to Seller at Closing. Cash reserves held out of the regular Association Assessments for deferred maintenance by the Association will not be credited to Seller except as may be otherwise provided by the Governing Documents. Buyer acknowledges that Buyer may be obligated to pay the Association, at Closing, an amount for reserves or working capital. Any special assessment assessed prior to Closing Date by the Association will be the obligation of Buyer Seller. Except however, any special assessment by the Association for improvements that have been installed as of the date of Buyer’s signature hereon, whether assessed prior to or after Closing, will be the obligation of Seller unless otherwise specified in Additional Provisions. Seller represents there are no unpaid regular or special assessments against the Property except the current regular assessments and n/a Association Assessments are subject to change as provided in the Governing Documents. CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 16 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 32 of 177 17. POSSESSION. Possession of the Property and Inclusions will be delivered to Buyer on Possession Date at Possession Time, subject to the Leases as set forth in § 10.6.1.1. and, if applicable, any Post-Closing Occupancy Agreement. If Seller, after Closing occurs, fails to deliver possession as specified, Seller will be subject to eviction and will be additionally liable to Buyer, notwithstanding § 20.2. (If Seller is in Default), for payment of $ 300.00 per day (or any part of a day notwithstanding § 3.3., Day) from Possession Date and Possession Time until possession is delivered. Buyer represents that Buyer will occupy the Property as Buyer’s principal residence unless the following box is checked, then Buyer Does Not represent that Buyer will occupy the Property as Buyer’s principal residence. If the box is checked, Buyer and Seller agree to execute a Post-Closing Occupancy Agreement. General Provisions 18. CAUSES OF LOSS, INSURANCE; DAMAGE TO INCLUSIONS AND SERVICES; CONDEMNATION; AND WALK-THROUGH. Except as otherwise provided in this Contract, the Property, Inclusions or both will be delivered in the condition existing as of the date of this Contract, ordinary wear and tear excepted. 18.1. Causes of Loss, Insurance. In the event the Property or Inclusions are damaged by fire, other perils or causes of loss prior to Closing (Property Damage) in an amount of not more than ten percent of the total Purchase Price and if the repair of the damage will be paid by insurance (other than the deductible to be paid by Seller), then Seller, upon receipt of the insurance proceeds, will use Seller’s reasonable efforts to repair the Property before Closing Date. Buyer has the Right to Terminate under § 24.1., on or before Closing Date, if the Property is not repaired before Closing Date, or if the damage exceeds such sum. Should Buyer elect to carry out this Contract despite such Property Damage, Buyer is entitled to a credit at Closing for all insurance proceeds that were received by Seller (but not the Association, if any) resulting from damage to the Property and Inclusions, plus the amount of any deductible provided for in the insurance policy. This credit may not exceed the Purchase Price. In the event Seller has not received the insurance proceeds prior to Closing, the parties may agree to extend the Closing Date to have the Property repaired prior to Closing or, at the option of Buyer, (1) Seller must assign to Buyer the right to the proceeds at Closing, if acceptable to Seller’s insurance company and Buyer’s lender; or (2) the parties may enter into a written agreement prepared by the parties or their attorney requiring the Seller to escrow at Closing from Seller’s sale proceeds the amount Seller has received and will receive due to such damage, not exceeding the total Purchase Price, plus the amount of any deductible that applies to the insurance claim. 18.2. Damage, Inclusions and Services. Should any Inclusion or service (including utilities and communication services), system, component or fixture of the Property (collectively Service) (e.g., heating or plumbing), fail or be damaged between the date of this Contract and Closing or possession, whichever is earlier, then Seller is liable for the repair or replacement of such Inclusion or Service with a unit of similar size, age and quality, or an equivalent credit, but only to the extent that the maintenance or replacement of such Inclusion or Service is not the responsibility of the Association, if any, less any insurance proceeds received by Buyer covering such repair or replacement. If the failed or damaged Inclusion or Service is not repaired or replaced on or before Closing or possession, whichever is earlier, Buyer has the Right to Terminate under § 24.1., on or before Closing Date, or, at the option of Buyer, Buyer is entitled to a credit at Closing for the repair or replacement of such Inclusion or Service. Such credit must not exceed the Purchase Price. If Buyer receives such a credit, Seller’s right for any claim against the Association, if any, will survive Closing. 18.3. Condemnation. In the event Seller receives actual notice prior to Closing that a pending condemnation action may result in a taking of all or part of the Property or Inclusions, Seller must promptly notify Buyer, in writing, of such condemnation action. Buyer has the Right to Terminate under § 24.1., on or before Closing Date, based on such condemnation action, in Buyer’s sole subjective discretion. Should Buyer elect to consummate this Contract despite such diminution of value to the Property and Inclusions, Buyer is entitled to a credit at Closing for all condemnation proceeds awarded to Seller for the diminution in the value of the Property or Inclusions, but such credit will not include relocation benefits or expenses or CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 17 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 33 of 177 exceed the Purchase Price. 18.4. Walk-Through and Verification of Condition. Buyer, upon reasonable notice, has the right to walk through the Property prior to Closing to verify that the physical condition of the Property and Inclusions complies with this Contract. 18.5. Home Warranty. Seller and Buyer are aware of the existence of pre-owned home warranty programs that may be purchased and may cover the repair or replacement of such Inclusions. 19. RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this Contract, Buyer and Seller acknowledge that their respective broker has advised that this Contract has important legal consequences and has recommended: (1) legal examination of title; (2) consultation with legal and tax or other counsel before signing this Contract as this Contract may have important legal and tax implications; (3) to consult with their own attorney if Water Rights, Mineral Rights or Leased Items are included or excluded in the sale; and (4) to consult with legal counsel if there are other matters in this transaction for which legal counsel should be engaged and consulted. Such consultations must be done timely as this Contract has strict time limits, including deadlines, that must be complied with. 20. TIME OF ESSENCE, DEFAULT AND REMEDIES. Time is of the essence for all dates and deadlines in this Contract. This means that all dates and deadlines are strict and absolute. If any payment due, including Earnest Money, is not paid, honored or tendered when due, or if any obligation is not performed timely as provided in this Contract or waived, the non-defaulting party has the following remedies: 20.1. If Buyer is in Default: 20.1.1. Specific Performance. Seller may elect to cancel this Contract and all Earnest Money (whether or not paid by Buyer) will be paid to Seller and retained by Seller. It is agreed that the Earnest Money is not a penalty, and the Parties agree the amount is fair and reasonable. Seller may recover such additional damages as may be proper. Alternatively, Seller may elect to treat this Contract as being in full force and effect and Seller has the right to specific performance or damages, or both. 20.1.2. Liquidated Damages, Applicable. This § 20.1.2. applies unless the box in § 20.1.1. is checked. Seller may cancel this Contract. All Earnest Money (whether or not paid by Buyer) will be paid to Seller and retained by Seller. It is agreed that the Earnest Money amount specified in § 4.1. is LIQUIDATED DAMAGES and not a penalty, which amount the parties agree is fair and reasonable and (except as provided in §§ 10.4. and 21), such amount is SELLER’S ONLY REMEDY for Buyer’s failure to perform the obligations of this Contract. Seller expressly waives the remedies of specific performance and additional damages. 20.2. If Seller is in Default: 20.2.1. Specific Performance, Damages or Both. Buyer may elect to treat this Contract as canceled, in which case all Earnest Money received hereunder will be returned to Buyer and Buyer may recover such damages as may be proper. Alternatively, in addition to the per diem in § 17 (Possession) for failure of Seller to timely deliver possession of the Property after Closing occurs, Buyer may elect to treat this Contract as being in full force and effect and Buyer has the right to specific performance or damages, or both. 20.2.2. Seller’s Failure to Perform. In the event Seller fails to perform Seller’s obligations under this Contract, to include, but not limited to, failure to timely disclose Association violations known by Seller, failure to perform any replacements or repairs required under this Contract or failure to timely disclose any known adverse material facts, Seller remains liable for any such failures to perform under this Contract after Closing. Buyer’s rights to pursue the Seller for Seller’s failure to perform under this Contract are reserved and survive Closing. 21. LEGAL FEES, COST AND EXPENSES. Anything to the contrary herein notwithstanding, in the event of any arbitration or litigation relating to this Contract, prior to or after Closing Date, the arbitrator or court must award to the prevailing party all reasonable costs and expenses, including attorney fees, legal fees and expenses. 22. MEDIATION. If a dispute arises relating to this Contract (whether prior to or after Closing) and is not CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 18 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 34 of 177 resolved, the parties must first proceed, in good faith, to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. Before any mediated settlement is binding, the parties to the dispute must agree to the settlement, in writing. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The obligation to mediate, unless otherwise agreed, will terminate if the entire dispute is not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at that party’s last known address (physical or electronic as provided in § 26). Nothing in this Section prohibits either party from filing a lawsuit and recording a lis pendens affecting the Property, before or after the date of written notice requesting mediation. This Section will not alter any date in this Contract, unless otherwise agreed. 23. EARNEST MONEY DISPUTE. Except as otherwise provided herein, Earnest Money Holder must release the Earnest Money following receipt of written mutual instructions, signed by both Buyer and Seller. In the event of any controversy regarding the Earnest Money, Earnest Money Holder is not required to release the Earnest Money. Earnest Money Holder, in its sole subjective discretion, has several options: (1) wait for any proceeding between Buyer and Seller; (2) interplead all parties and deposit Earnest Money into a court of competent jurisdiction (Earnest Money Holder is entitled to recover court costs and reasonable attorney and legal fees incurred with such action); or (3) provide notice to Buyer and Seller that unless Earnest Money Holder receives a copy of the Summons and Complaint or Claim (between Buyer and Seller) containing the case number of the lawsuit (Lawsuit) within one hundred twenty days of Earnest Money Holder’s notice to the parties, Earnest Money Holder is authorized to return the Earnest Money to Buyer. In the event Earnest Money Holder does receive a copy of the Lawsuit and has not interpled the monies at the time of any Order, Earnest Money Holder must disburse the Earnest Money pursuant to the Order of the Court. The parties reaffirm the obligation of § 22 (Mediation). This Section will survive cancellation or termination of this Contract. 24. TERMINATION. 24.1. Right to Terminate. If a party has a right to terminate, as provided in this Contract (Right to Terminate), the termination is effective upon the other party’s receipt of a written notice to terminate (Notice to Terminate), provided such written notice was received on or before the applicable deadline specified in this Contract. If the Notice to Terminate is not received on or before the specified deadline, the party with the Right to Terminate accepts the specified matter, document or condition as satisfactory and waives the Right to Terminate under such provision. 24.2. Effect of Termination. In the event this Contract is terminated, and all Earnest Money received hereunder is timely returned to Buyer, the parties are relieved of all obligations hereunder, subject to §§ 10.4. and 21. 25. ENTIRE AGREEMENT, MODIFICATION, SURVIVAL; SUCCESSORS. This Contract, its exhibits and specified addenda, constitute the entire agreement between the parties relating to the subject hereof and any prior agreements pertaining thereto, whether oral or written, have been merged and integrated into this Contract. No subsequent modification of any of the terms of this Contract is valid, binding upon the parties, or enforceable unless made in writing and signed by the parties. Any right or obligation in this Contract that, by its terms, exists or is intended to be performed after termination or Closing survives the same. Any successor to a party receives the predecessor’s benefits and obligations of this Contract. 26. NOTICE, DELIVERY AND CHOICE OF LAW. 26.1. Physical Delivery and Notice. Any document or notice to Buyer or Seller must be in writing, except as provided in § 26.2. and is effective when physically received by such party, any individual named in this Contract to receive documents or notices for such party, Broker, or Brokerage Firm of Broker working with such party (except any notice or delivery after Closing must be received by the party, not Broker or Brokerage Firm). 26.2. Electronic Notice. As an alternative to physical delivery, any notice may be delivered in CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 19 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 35 of 177 electronic form to Buyer or Seller, any individual named in this Contract to receive documents or notices for such party, Broker or Brokerage Firm of Broker working with such party (except any notice or delivery after Closing, cancellation or Termination must be received by the party, not Broker or Brokerage Firm) at the electronic address of the recipient by facsimile, email or Internet/electronic signatures. 26.3. Electronic Delivery. Electronic Delivery of documents and notice may be delivered by: (1) email at the email address of the recipient, (2) a link or access to a website or server provided the recipient receives the information necessary to access the documents, or (3) facsimile at the facsimile number (Fax No.) of the recipient. 26.4. Choice of Law. This Contract and all disputes arising hereunder are governed by and construed in accordance with the laws of the State of Colorado that would be applicable to Colorado residents who sign a contract in Colorado for real property located in Colorado. 27. NOTICE OF ACCEPTANCE, COUNTERPARTS. This proposal will expire unless accepted in writing, by Buyer and Seller, as evidenced by their signatures below and the offering party receives notice of such acceptance pursuant to § 26 on or before Acceptance Deadline Date and Acceptance Deadline Time. If accepted, this document will become a contract between Seller and Buyer. A copy of this Contract may be executed by each party, separately and when each party has executed a copy thereof, such copies taken together are deemed to be a full and complete contract between the parties. 28. GOOD FAITH. Buyer and Seller acknowledge that each party has an obligation to act in good faith including, but not limited to, exercising the rights and obligations set forth in the provisions of Financing Conditions and Obligations; Title Insurance, Record Title and Off-Record Title; New ILC, New Survey; and Property Disclosure, Inspection, Indemnity, Insurability Due Diligence and Source of Water. ADDITIONAL PROVISIONS AND ATTACHMENTS 29. ADDITIONAL PROVISIONS. (The following additional provisions have not been approved by the Colorado Real Estate Commission.) 1. This Contract to Buy and Sell Real Estate is conditioned and contingent upon the Vail Town Council granting authorization to proceed with the purchase of the Property described in Section 1, subject to the terms of the Contract. Authorization to proceed shall be by consideration of a Vail Town Council Resolution on June 7, 2022." and "Section 15.4. Local Transfer Tax: The buyer, The Town of Vail, agrees to forgo the 1% Town of Vail Transfer Tax on the sale of this property. Both Buyer and Seller shall have no obligation to pay the 1% Town of Vail Transfer Tax at the time of closing. 2. Seller to provide an inventory report before closing. 3. Buyer takes the property in as-is condition. 30. OTHER DOCUMENTS. 30.1. Documents Part of Contract. The following documents are a part of this Contract: 30.1.1. Post-Closing Occupancy Agreement. If the Post-Closing Occupancy Agreement box is checked in § 17 the Post-Closing Occupancy Agreement is a part of this Contract. n/a 30.2. Documents Not Part of Contract. The following documents have been provided but are not a part of this Contract: CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 20 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 36 of 177 n/a Signatures Date:5/23/2022 Buyer: Town Of Vail By: Town Manager, Stan Zemler [NOTE: If this offer is being countered or rejected, do not sign this document.] Date:5/23/2022 Seller: Monique Arsenault NKA Monique Arsenault Vormohr Date:5/23/2022 Seller: Deena Arsenault NKA Deena Olivolo END OF CONTRACT TO BUY AND SELL REAL ESTATE BROKER’S ACKNOWLEDGMENTS AND COMPENSATION DISCLOSURE. A. Broker Working With Buyer Broker Does Does Not acknowledge receipt of Earnest Money deposit. Broker agrees that if Brokerage Firm is the Earnest Money Holder and, except as provided in § 23, if the Earnest Money has not already been returned following receipt of a Notice to Terminate or other written notice of termination, Earnest Money Holder will release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money will be made within five days of Earnest Money Holder’s receipt of the executed written mutual instructions, provided the Earnest Money check has cleared. Broker is working with Buyer as a Buyer’s Agent Transaction-Broker in this transaction. Customer. Broker has no brokerage relationship with Buyer. See § B for Broker’s brokerage relationship CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 21 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 37 of 177 with Seller. Brokerage Firm’s compensation or commission is to be paid by Listing Brokerage Firm Buyer Other Berkshire Hathaway Home Services Colorado Properties. This Broker’s Acknowledgements and Compensation Disclosure is for disclosure purposes only and does NOT create any claim for compensation. Any compensation agreement between the brokerage firms must be entered into separately and apart from this provision. Brokerage Firm’s Name: Berkshire Hathaway HomeServices Colorado Properties Brokerage Firm’s License #: EC 28210 Date:5/19/2022 Broker’s Name: Danean Boukather Broker’s License #: FA100000608 Address: 511 E Lionshead Cir Vail, CO 81657 Ph:970-476-2482 Fax: 970-476-6499 Email Address: danean@bhhsvail.net B. Broker Working with Seller Broker Does Does Not acknowledge receipt of Earnest Money deposit. Broker agrees that if Brokerage Firm is the Earnest Money Holder and, except as provided in § 23, if the Earnest Money has not already been returned following receipt of a Notice to Terminate or other written notice of termination, Earnest Money Holder will release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money will be made within five days of Earnest Money Holder’s receipt of the executed written mutual instructions, provided the Earnest Money check has cleared. Broker is working with Seller as a Seller’s Agent Transaction-Broker in this transaction. Customer. Broker has no brokerage relationship with Seller. See § A for Broker’s brokerage relationship with Buyer. Brokerage Firm’s compensation or commission is to be paid by Seller Buyer Other . This Broker’s Acknowledgements and Compensation Disclosure is for disclosure purposes only and does NOT create any claim for compensation. Any compensation agreement between the brokerage firms must be entered into separately and apart from this provision. Brokerage Firm’s Name: Berkshire Hathaway HomeServices ColoradoProperties Brokerage Firm’s License #: EC 28210 CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 22 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 38 of 177 Date:5/23/2022 Broker’s Name: Carrie Larson Broker’s License #: FA.100070065 Address: 26 Avondale Ln/PO Box 2467 Beaver Creek, CO 81620 Ph: 970-845-8440 Fax: 970-845-8632 Email Address: carrie@bhhsvail.net CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) CTM eContracts - ©2022 MRI Software LLC - All Rights Reserved CBS1-6-21. CONTRACT TO BUY AND SELL REAL ESTATE - Residential Page 23 of 23 5/24/2022 12:15:16 PM CTMeContracts.com - ©2022 CTM Software Corp. June 7, 2022 - Page 39 of 177 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: Resolution No. 30, S eries of 2022, A Resolution Approving the P urchase of the Residential P roperty known as Chamonix Vail Townhome, Unit B, 2347 Upper Traverse Way, Vail, Colorado 81657 B AC K G RO UND: The availability of housing for its employees remains an ongoing need for the Town of Vail municipal government. As the fourth largest employer in Vail, the Town of Vail too is challenged by the need for housing for its workforce. As the F T E count for the Town grows so does it’s need to support housing for the employees. Over the years the Town has taken a wide range of approaches to addressing its employee housing needs, including “buying down” homes for purchase by Town of Vail employees. S TAF F RE C O M M E ND AT IO N: A pprove, approve with amendments or deny Resolution No. 30, S eries of 2022 AT TAC H ME N TS: Description Memo Resolution No. 30, Series of 2022 June 7, 2022 - Page 40 of 177 75 South Frontage Road West Housing Department Vail, Colorado 81657 970.479.2150 vailgov.com MEMORANDUM To: Vail Town Council From: George Ruther, Housing Director Date: June 7, 2022 Re: Resolution No. 30, Series of 2022, a resolution authorizing the purchase of the residential property known as Chamonix Vail Townhome Unit B, 2347 Upper Traverse Way, Vail, Colorado I. Purpose The purpose of this memorandum is to provide the justifications for the Town’s proposed purchase of the residential property known as Chamonix Vail Townhome Unit B, 2347 Upper Traverse Way, Vail, Colorado. A copy of Resolution No. 30, Series of 2022, authorizing the purchase of the residential property known as Chamonix Vail Townhome, Unit B, 2347 Upper Traverse Way. II. Recommendation Mark Harrington and Debra Weissbard, the owners of Chamonix Vail Townhome, Unit B, located at 2347 Upper Traverse Way have submitted a letter of intent to sale their residential property pursuant to the terms of the deed restriction recorded on the property. The home sale is price appreciation capped with a maximum resale price of $634,940, as of May 31, 2022. According to the terms of the deed restriction, the Town of Vail maintains a first option to purchase any home available for-sale in the Chamonix Vail Townhomes neighborhood. In this insatance, the Town of Vail Housing Department recommends the Vail Town Council exercise the option. The option is subject to the maximum resale price effective as of the date of receipt of a letter of intent to sell. The owners have mutually agreed to a closing date of June 21, 2022, subject to the Town’s completion of a home inspection and review of title. Upon possession of the residential property the Housing Department further recommends that an amended deed restriction be recorded on the property specifically requiring that at least June 7, 2022 - Page 41 of 177 Town of Vail Page 2 75% of a qualified resident’s income be derived from a business located within Eagle County. Once an amended deed restriction is recorded, the residential property will be immediately placed back on the market for-sale to a qualified resident, subject to a lottery selection process for a purchase price of $635,000. The lottery selection process is scheduled to occur in mid-July with a closing tentatively occurring in late-August or early-September, subject to terms. Does the Vail Town Council authorize the purchase of the residential property located at Chamonix Vail Townhomes, Unit B, 2347 Upper Traverse Way, the recording of an amended deed restriction, and the subsequent resale, as recommended herein? June 7, 2022 - Page 42 of 177 Resolution No. 30, Series of 2022 RESOLUTION NO. 30 SERIES OF 2022 A RESOLUTION APPROVING THE PURCHASE OF THE RESIDENTIAL PROPERTY KNOWN AS CHAMONIX VAIL TOWNHOME, UNIT B, 2347 UPPER TRAVERSE WAY, VAIL, COLORADO 81657 WHEREAS, Mark Harrington (“Seller”) owns the real property more particularly described and depicted in the Contract to Buy and Sell Estate, attached hereto as Exhibit A and incorporated herein by this reference (the "Property"); and WHEREAS, the Town wishes to purchase the Property subject to the terms of the Contract to Buy and Sell Real Estate (the “Contract”); NOW, THEREFORE, be it resolved by the Town Council of the Town of Vail, Colorado: Section 1. The Town Council hereby approves the Contract and authorizes the Town Manager to execute the Contract on behalf of the Town in substantially the same form attached hereto as Exhibit A and in a form approved by the Town Attorney. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, READ, APPROVED AND ADOPTED this 7th day of June, 2022 ________________________________ Kimberly Langmaid, Mayor ATTEST: _________________________________ Tammy Nagel, Town Clerk June 7, 2022 - Page 43 of 177 Resolution No. 30, Series of 2022 June 7, 2022 - Page 44 of 177 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: Resolution No. 32, S eries of 2022, A Resolution Approving a First A mendment to E mployment Agreement between the Town of Vail and S tan Zemler B AC K G RO UND: On A pril 19, 2022 the Town of Vail entered into an employment agreement whereby the Town employed the services of Stan Z emler as the I nterim Town Manager as allowed by the Town Charter and wish to amend the agreement. S TAF F RE C O M M E ND AT IO N: A pprove, approve with amendments or deny Resolution 32, S eries of 2022. AT TAC H ME N TS: Description Resolution No. 32, Series of 2022 exhibit A June 7, 2022 - Page 45 of 177 RESOLUTION NO. 32 Series of 2022 A RESOLUTION APPROVING A FIRST AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN THE TOWN OF VAIL AND STAN ZEMLER WHEREAS, on April 19, 2022, the Stan Zemler (“Zemler”) and the Town entered into an Employment Agreement whereby the Town employed the services of Zemler as Interim Town Manager, as allowed by Town Charter (the "Agreement"); WHEREAS, the Parties wish to amend the Agreement as set forth in the Exhibit A, attached hereto and made a part hereof by this reference (the “Amendment”). NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Town Council hereby approves the Amendment in substantially the same form as attached hereto as Exhibit A, and in a form approved by the Town Attorney, and authorizes the Town Manager to execute the Amendment on behalf of the Town. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 7th day of June 2022. _________________________ Kim Langmaid, Town Mayor ATTEST: _____________________________ Tammy Nagel, Town Clerk June 7, 2022 - Page 46 of 177 1 6/2/2022 \\FILESERVER2019\REDIRECTED$\SBIBBENS\DESKTOP\ZEMLER AMEND-A060222 (002).DOCX AMENDMENT TO EMPLOYMENT AGREEMENT THIS AMENDMENT TO EMPLOYMENT AGREEMENT (the "Amendment") is made and entered into this ____ day of ___________, 2022 (the "Effective Date"), by and between the Town of Vail, a Colorado home rule municipality with an address of 75 South Frontage Road, Vail, Colorado 81657 (the "Town"), and Stan Zemler, an individual with an address of 4369 Fourmile Canyon Drive, Boulder, Colorado 80302 ("Zemler") (each a "Party" and collectively the "Parties"). WHEREAS, on April 19, 2022, the Parties entered into an Employment Agreement whereby the Town employed the services of Zemler as Interim Town Manager, as allowed by Town Charter (the "Agreement"); and WHEREAS, the Parties wish to amend the Agreement. NOW, THEREFORE, for the consideration hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Section 1 of the Agreement is amended to read as follows: 1. Employment. The Town agrees to employ Zemler as Interim Town Manager of the Town. As the Interim Town Manager, Zemler shall be responsible for the organization and efficient administration of all administrative departments of the Town, in accordance with the Charter and ordinances of the Town and the job description attached hereto and incorporated herein by this reference. Zemler shall faithfully carry out directives and recommendations of the Mayor and Town Council in coordinating the administrative functions and operations of various departments. This shall be a full-time position. 2. Section 3 of the Agreement is amended to read as follows: 3. Salary. Commencing at the Start Date, the Town shall pay Zemler for his services in the amount $16,243.50 per month (the "Base Salary"), which shall be paid periodically in the same manner as other employees of the Town are paid. The Base Salary may be increased by appropriate action of the Town Council at any time. This Section shall not preclude the Town Council from awarding bonuses based on performance. 3. Section 4 of the Agreement is amended to read as follows: 4. Benefits. In addition to the Base Salary, Zemler shall receive the following benefits during his employment as Interim Town Manager: a. Residence. The Town shall provide the Town Manager's residence located at 2507 Arosa Drive for Zemler's use while employed as Interim Town Manager. The Town shall be responsible for all capital maintenance and insurance for the residence. Zemler shall be responsible for day-to-day living expenses such as personal property insurance, utilities, and snow removal. The use of this residence June 7, 2022 - Page 47 of 177 2 6/2/2022 \\FILESERVER2019\REDIRECTED$\SBIBBENS\DESKTOP\ZEMLER AMEND-A060222 (002).DOCX ends with the separation from employment unless otherwise agreed to in writing with the Town. The Town will coordinate move-in, including initial cleaning services. The Town will also provide a $15,000 payment at the commencement of the Start Date to furnish the residence. b. Leave. Zemler shall receive paid holidays, vacation leave and sick leave earned in the same manner as employees of the Town at the 100% full-time accrual rate, which includes designated holidays, in a pro-rated manner for the duration of this Agreement, and shall have 10 days of vacation accrual available on the Start Date. c. Mobile Phone and Computer. The Town shall provide Zemler with a mobile phone and computer to use for Town business during the term of this Agreement, or a monthly cellular allowance of $125 for the same. Upon termination, any Town- provided mobile phone and computer shall be returned to the Town. d. Vehicle Allowance. In exchange for Zemler's use of his personal vehicle for travel to and from the Town and for other Town business, the Town will reimburse Zemler in the amount of $500 per month in lieu of a mileage reimbursement. Use of a Town vehicle may be provided where the employee is required to travel outside the local region for Town business. If the Town provides Zemler with a Town vehicle for personal and professional use, the vehicle will be in lieu of the vehicle allowance. e. Retirement. Zemler shall be eligible to participate in the retirement programs established by the Town in the same manner as all other full-time employees of the Town, including the Town's 401(a) retirement plan at the highest contribution rate, or Zemler shall be eligible for a cash equivalent. f. Health Insurance Allocation. In lieu of health insurance, the Town shall provide Zemler $200 per month for allocation toward health insurance expenses. g. Life Insurance and Disability. The Town shall provide workers' compensation insurance for Zemler as required by law. The Town shall provide short-term and long-term disability for Zemler in the same manner as for all other full-time Town employees. The Town shall provide Zemler with a $300,000 term life insurance policy. h. Recreation. Should the Term extend into the 2022-2023 ski season, the Town shall provide Zemler with the ski/fitness benefit provided to other full-time employees (currently up to $800). The Town will additionally provide a $100 per month allowance toward an athletic club membership. 4. The remainder of the Agreement shall remain in full force and effect as written. June 7, 2022 - Page 48 of 177 3 6/2/2022 \\FILESERVER2019\REDIRECTED$\SBIBBENS\DESKTOP\ZEMLER AMEND-A060222 (002).DOCX IN WITNESS WHEREOF, the Parties have executed this Amendment as of the Effective Date. TOWN OF VAIL, COLORADO ________________________________ Kim Langmaid, Mayor ATTEST: __________________________________ Tammy Nagel, Town Clerk EMPLOYEE ________________________________ STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of ________________, 2022, by Stan Zemler. My commission expires: (S E A L) ________________________________ Notary Public June 7, 2022 - Page 49 of 177 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: Contract Award to Hallmark I nc. for Donovan P ark P edestrian Bridge Deck Rehabilitation B AC K G RO UND: S taff received 3 bids for the Donovan Park Pedestrian B ridge Deck Rehabilitation Project from Hallmark, I nc., K raemer North America and A B C O Contracting with Hallmark the apparent low responsible bidder. T he project is budgeted with the recreation paths and trails R E T T budget and is within budget. T he existing pedestrian bridge over the Gore Creek is located on the south end of Donovan P ark and adjacent to the Matterhorn Circle vehicular bridge over Gore Creek connecting the neighborhood to the south to the park. The existing bridge deck has significant spalling and will continue to get worse with each freeze/thaw cycle. Work includes removal of the existing bridge deck and installation of a new concrete bridge deck. T he project is scheduled to be completed by September 2, 2022. S TAF F RE C O M M E ND AT IO N: A uthorize the Town Manager to enter into an agreement, in a form approved by the Town A ttorney, with Hallmark, I nc to complete the Donovan Park Pedestrian B ridge Deck Rehabilitation Project in the amount not to exceed $123,453.50. AT TAC H ME N TS: Description memo June 7, 2022 - Page 50 of 177 To: Town Council From: Public Works Date: 06/07/2022 Subject: Donovan Park Pedestrian Bridge Deck Rehabilitation Contract Award I. ITEM/TOPIC Donovan Park Pedestrian Bridge Deck Rehabilitation Contract Award II. ACTION REQUESTED OF COUNCIL Authorize the Town Manager to enter into an agreement with Hallmark, Inc to complete the Donovan Park Pedestrian Bridge Deck Rehabilitation Project. III. BACKGROUND Staff received 3 bids for the Donovan Park Pedestrian Bridge Deck Rehabilitation Project from Hallmark, Inc., Kraemer North America and ABCO Contracting with Hallmark the apparent low responsible bidder. The project is budgeted with the recreation paths and trails RETT budget and is within budget. The existing pedestrian bridge over the Gore Creek is located on the south end of Donovan Park and adjacent to the Matterhorn Circle vehicular bridge over Gore Creek connecting the neighborhood to the south to the park. The existing bridge deck has significant spalling and will continue to get worse with each freeze/thaw cycle. Work includes removal of the existing bridge deck and installation of a new concrete bridge deck . The project is scheduled to be completed by September 2, 2022. IV. STAFF RECOMMENDATION Authorize the Town Manager to enter into an agreement, in a form approved by the Town Attorney, with Hallmark, Inc to complete the Donovan Park Pedestrian Bridge Deck Rehabilitation Project in the amount not to exceed $123,453.50. June 7, 2022 - Page 51 of 177 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 Temporary S tructures June 7, 2022 - Page 52 of 177 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: Ordinance No. 4, S eries of 2022, F irst Reading, An Ordinance A mending Ordinance No. 20, S eries of 2005, Providing for a Major A mendment to S pecial Development District No. 36, F our S easons Resort, Pursuant to Article A, Special Development (S D D) District, Chapter 9, Title 12, Z oning Regulations, Vail Town Code, and Setting Forth Details in Regard Thereto P RE S E NT E R(S ): J onathan S pence, Planning Manager AC T IO N RE Q UE S T E D O F C O UNC I L: Table this item to the J une 21, 2022 meeting to allow time for the applicant and staff to coordinate on potential revisions to Ordinance No. 4, Series of 2022. B AC K G RO UND: On May 9, 2022, a revised application that proposed to relocate the onsite housing to locations both within the Town of Vail and the adjacent E agle-Vail community. A portion of the obligation was proposed to be satisfied through the purchase of seven (7) deed restrictions (2-bedroom units) in an existing multifamily building located in Eagle-Vail. T he remainder of the obligation is proposed to be met through in-town deed restrictions. Following the applicant’s presentation and a lengthy discussion, the commission voted 4-1 (L ipnick opposed) to forward a recommendation of denial to the Town Council for the revised application. S TAF F RE C O M M E ND AT IO N: Table this item to the J une 21, 2022 meeting to allow time for the applicant and staff to coordinate on potential revisions to Ordinance No. 4, S eries of 2022. AT TAC H ME N TS: Description Staff Memorandum Attachment A. Draft Ordinance No. 4, Series of 2022 Attachment B. Revised Project Narrative, April 2022 Attachment C. P E C Memorandum, without attachments dated May 9, 2022 Attachment D. P E C minutes, May 9, 2022 June 7, 2022 - Page 53 of 177 TO: Vail Town Council FROM: Community Development Department DATE: June 7, 2022 SUBJECT: First reading of Ordinance No. 4, Series of 2022, an ordinance repealing and reenacting Ordinance No. 21, Series of 2017, providing for a major amendment to Special Development District No. 36, Four Seasons Resort, in accordance with Chapter 12-9A, Special Development (SDD) District, Vail Town Code, to allow for reconfiguration of existing accommodation units, fractional fee units and dwelling units, and to amend the Employee Housing Plan to relocate a portion of the existing onsite employee housing offsite, located at 1 Vail Road/Lots A-C, Vail Village Filing 2, and setting forth details in regard thereto. (PEC21-0059) Applicant: Four Seasons Resort, represented by Andrew Sellnau Planner: Jonathan Spence I. SUMMARY The applicant, Four Seasons Resort, represented by Andrew Sellnau, is requesting a first reading of Ordinance No. 4, Series of 2022, an ordinance repealing and reenacting Ordinance No. 21, Series of 2017, providing for a major amendment to Special Development District No. 36, Four Seasons Resort, in accordance with Chapter 12-9A, Special Development (SDD) District, Vail Town Code, to allow for reconfiguration of existing accommodation units, fractional fee units and dwelling units, and to amend the Employee Housing Plan to relocate a portion of the existing onsite employee housing offsite located at 1 Vail Road. On March 14, 2022, the Town of Vail Planning and Environmental Commission (PEC) held a public hearing on the request for a recommendation to the Vail Town Council for a major amendment to Special Development District No. 36, Four Seasons Resort, pursuant to the requirement of Section 12-9A, Special Development (SDD) District, Vail Town Code. At the conclusion of the public hearing, the PEC voted 5-0-1 (Gillette abstained) to forward a recommendation of denial, to the Vail Town Council. June 7, 2022 - Page 54 of 177 Town of Vail Page 2 On April 5, 2022, the Vail Town Council voted (7-0) to remand the application back to the Planning and Environmental Commission for further review. On May 9, 2022, a revised application that proposed to relocate the onsite housing to locations both within the Town of Vail and the adjacent Eagle-Vail community. A portion of the obligation was proposed to be satisfied through the purchase of seven (7) deed restrictions (2-bedroom units) in an existing multifamily building located in Eagle-Vail. The remainder of the obligation is proposed to be met through in-town deed restrictions. Following the applicant’s presentation and a lengthy discussion, the commission voted 4-1 (Lipnick opposed) to forward a recommendation of denial to the Town Council for the revised application. II. ACTION REQUESTED OF THE TOWN COUNCIL The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 4, Series of 2022, upon first reading. III. DESCRIPTION OF REQUEST/BACKGROUND The applicant, Four Seasons Resort, is requesting a major amendment to SDD No. 36, Four Seasons (Ord. No. 21, Series of 2017), in order to change the unit mix within the resort and to relocate a portion of the existing on-site employee housing to down-valley communities. Following the 2017 approval, the Four Seasons completed some of the proposed conversions, opted not to move forward with others, and moved forward with other conversions that were not part of the approval. The following chart shows the approved, existing, and proposed unit mixes: Approved Unit Mix 2017 Existing Unit Mix 2021 Proposed Unit Mix 2022 Net Change from 2017 approval 130 AUs 117 AUs 123 AUs -7 AUs 28 Dwelling Units (with 18 AAUs) 28 Dwelling Units (with 15 AAUs) 32 Dwelling Units (with 15 AAUs) +4 DUs - 3 AAUs 6 FFUs 6 FFUs 6 FFUs - 28 EHU 28 EHU 12 EHUs -16 EHUs The current proposal includes the following components: • Replacing up to 16 underutilized onsite deed-restricted employee housing units (EHUs) with offsite deed-restricted employee housing. A portion of the obligation is proposed to be satisfied through the purchase of seven (7) deed restrictions (2-bedroom units) in an existing multifamily building located in Eagle-Vail. The remainder of the obligation is proposed to be met through in-town deed restrictions. June 7, 2022 - Page 55 of 177 Town of Vail Page 3 • Reconfiguring the underutilized dorm-style employee housing units into 13 additional hotel accommodation units (AUs); and • Reclassifying seven existing accommodation units into four dwelling units. As all the conversions occur within the existing structure, with the exception of the existing EHU balconies that will be converted to AU square footage; there are no changes to development standards such as setbacks, building height, site coverage, and landscaping. Parking: The existing SDD (Ord. No. 21, Series of 2017) demonstrated a total parking capacity of 230 spaces serviced via a 24-hour valet service. The staff analysis of the approved, completed, and proposed work indicates that the net effect on parking is negligible with an overall effect of a reduction in the requirement of 1.4 spaces. Please see page 12 of the applicant’s narrative. Commercial Linkage and Inclusionary Zoning: The amendments to the unit mix accomplished through the 2017 amendments resulted in an increase in the employee mitigation requirements which was addressed with a housing deed restriction for at least one two-bedroom dwelling unit with a minimum of 788 square feet, located within the Town of Vail. Staff analysis of the approved, completed, and proposed work, not including the repurposing of 16 dorm rooms (EHUs) to Accommodation Units, has a relatively negligible effect on the overall employee mitigation requirement for the Four Seasons Resort. As shown on pages 13 and 14 of the applicant’s narrative, the net increase in employees is 1.6 with a mitigation requirement of 20% or .32 employees. With the inclusion of the repurposing of the existing EHUs, the total mitigation requirement for the proposed amendments to SDD No. 36 is 32.32 employees. Existing On-Site Employee Housing Program The existing dormitory-style EHUs, comprised of 28 rooms for an occupancy of 56 employees, make up the bulk of the required mitigation measures. The Town has consistently received notarized annual verification forms from the Four Seasons indicating compliance with the deed restrictions. Town of Vail deed restrictions require that units are continuously occupied by qualified residents. Accompanying the signed verification has been lists of employees utilizing the on-site EHUs. Staff has learned from the applicant’s team that the intention of providing the list of names was not only to demonstrate that the occupants were qualified residents, as required, but also to demonstrate that the units were not being occupied at 100% capacity. As this intention is contrary to the verification form (a copy of which has been included as Attachment C.), town staff has not been aware of the ongoing noncompliance with the requirements June 7, 2022 - Page 56 of 177 Town of Vail Page 4 of the deed restriction. Staff is concerned that the remaining dormitory-style rooms will continue to function with less than 100% occupancy, as required by the deed restriction. Proposed Mitigation The applicant is proposing to meet the mitigation requirement through the purchase of deed restrictions on existing homes both intown and in the adjacent Eagle-Vail community. Please see the applicant’s revised narrative for details on this approach. The proposal will result in a net increase in restricted square footage in comparison to the existing dorm rooms but equates to the same number of employees mitigated per the code requirements outlined in Table 23-2 and shown below: TABLE 23-2 SIZE OF EMPLOYEE HOUSING UNITS Type Of Unit Minimum Size (GRFA) Number Of Employee s Housed Dormitory 250 1 Studio 438 1.25 1 bedroom 613 1.75 2 bedroom 788 2.25 3 or more bedroom 1,225 3.5 Deed Restriction Exchange Program The applicant is intending to accomplish the off-site deed restrictions through the Special Development District amendment process. Section 12-3-5 of the Vail Town Code provides a mechanism for the removal of a deed restriction on a property. (Please see Section IV, Applicable Planning Documents for this section of the Vail town Code.) As the applicant is proposing an Amendment to the SDD, this section shall only serve as a guide. Per this section, the relocation of a deed restriction is subject to a ratchet effect determined by the location of the existing restriction and the location of the proposed restriction. In this case, the Four Seasons is located within the Commercial Job Core, as defined, and the proposed down valley receiving areas are located outside of the Commercial Job Core. Per Section 12-13-5 D.3.b. of the Vail Town Code, the exchange rate would be three (3) times the GRFA requirement of the existing EHUs. It should be noted that at this time exchanging in town restrictions for out of town restrictions is not permissible under the exchange program. IV. ZONING / SDD NO. 36 ANALYSIS Address: 1 Vail Road Legal Description: Vail Village Filing 2, Lot A - C June 7, 2022 - Page 57 of 177 Town of Vail Page 5 Existing Zoning: Public Accommodation (PA) Existing Land Use Designation: Resort Accommodations and Services Mapped Geological Hazards: Streep Slope > 40% (Man-Made) View Corridor: None Development Standard Allowed / Required Existing Proposed Change Site Area 10,000 SF 2.32 acres (101,140 SF) No Change Setbacks As set forth in the Approved Development Plan referenced in Section 4 of Ord. No. 20, Series of 2005, Four Seasons SDD No Change Building Height 89’ N/A No Change Density AUs: 130 DUs: 28 (+15 AAUs) FFUs: 6 EHUs: 28 AUs: 123 DUs: 32 (with 15 AAUs) FFUs: 6 EHUs: 12 AUs: +7 DUs: +4 FFUs No Change EHUs: -16 GRFA 177,609 SF No Change Retail SF 2,386 SF No Change Restaurant SF 5,946 SF No Change Conference SF 11,139 SF No Change Health Club 18,577 SF No Change Site Coverage 85,091 SF (71%) (Below Grade) 70,150 SF (59%) (Above Grade) No Change Landscaping 35,268 SF (30%) No Change Parking & Loading 230 Spaces 235 Spaces 235 Spaces No Change V. PLANNING AND ENVIRONMENTAL COMMISSION RECOMMENDATION On May 9, 2022, the Town of Vail Planning and Environmental Commission (PEC) held a public hearing on the request for a recommendation to the Vail Town Council for a major amendment to Special Development District No. 36, Four Seasons Resort, pursuant to the requirement of Section 12-9A, Special Development (SDD) District, Vail Town Code. At the conclusion of the public hearing, the PEC voted 4-1-0 (Lipnick opposed) to forward a recommendation of denial to the Vail Town Council. Staff would encourage the Town Council to consider tabling the application, with direction to the applicant, to enable revisions consistent with adopted goals and objectives for a successful SDD amendment. Should the Vail Town Council choose to approve Ordinance No. 4, Series of 2022, upon first reading, the Planning and Environmental Commission recommends the Town Council passes the following motion: “The Vail Town Council approves on first reading Ordinance No. 4, Series of 2022, an ordinance repealing and reenacting Ordinance No. 21, Series of 2017, for a major amendment to Special Development District No. 36, Four Seasons, to allow for reconfiguration of existing accommodation units, fractional fee units and dwelling units, and to amend the Employee Housing Plan to relocate a June 7, 2022 - Page 58 of 177 Town of Vail Page 6 portion of the existing onsite employee housing offsite, located at 1 Vail Road/Lots A-C, Vail Village Filing 2, and setting forth details in regard thereto.” Should the Vail Town Council choose to approve Ordinance No. 4, Series of 2022, upon first reading, the Community Development Department recommends the Town Council include the following conditions: 1. The exterior building changes associated with this major amendment to SDD No. 36, Four Seasons, are contingent upon the applicant obtaining Town of Vail approval of an associated design review board application for all exterior changes to the property; 2. Prior to issuance of a certificate of occupancy for the conversion of any of the existing dorm rooms in the subject property, the applicant shall record with the Eagle County Clerk and Recorder a Town of Vail employee housing deed restriction corresponding to square footages per Table 23-2 for each employee. Each dormitory room repurposed equated to two employees for the purposes of mitigation. Should the Vail Town Council choose to approve Ordinance No. 4, Series of 2022, upon first reading, the Community Development Department recommends the Town Council makes the following findings: 1. That the SDD complies with the standards listed in Section 12-9A-8-A, Vail Town Code, or the applicant has demonstrated that one or more of the standards is not applicable, or that a practical solution consistent with the public interest has been achieved; 2. That the SDD is consistent with the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; 3. That the SDD is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and 4. That the SDD promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” VI. ATTACHMENTS A. Draft Ordinance No. 4, Series of 2022 B. Revised Project Narrative, April 2022 C. PEC Memorandum, without attachments dated May 9, 2022 D. PEC minutes, May 9, 2022 June 7, 2022 - Page 59 of 177 Ordinance No. 4, Series of 2022 1 ORDINANCE NO. 4 SERIES OF 2022 AN ORDINANCE AMENDING ORDINANCE NO. 20, SERIES OF 2005, PROVIDING FOR A MAJOR AMENDMENT TO SPECIAL DEVELOPMENT DISTRICT NO. 36, FOUR SEASONS RESORT, PURSUANT TO ARTICLE A, SPECIAL DEVELOPMENT (SDD) DISTRICT, CHAPTER 9, TITLE 12, ZONING REGULATIONS, VAIL TOWN CODE, AND SETTING FORTH DETAILS IN REGARD THERETO WHEREAS, the Town of Vail, in the County of Eagle and State of Colorado (the "Town"), is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Vail Town Charter; WHEREAS, the members of the Town Council of the Town (the "Council") have been duly elected and qualified; WHEREAS, Ordinance No. 21, Series of 2017, reestablished Special Development District No. 36, Four Seasons Resort; WHEREAS, amendments to a Special Development District are permitted pursuant to the parameters set forth in Section 12-9A-10, Vail Town Code; WHEREAS, the Planning and Environmental Commission of the Town held s public hearings on March 14, 2022 and May 9, 2022 to consider the proposed amendments in accordance with the provisions of the Vail Town Code; WHEREAS, the Council finds that the proposed amendments to Special Development District No. 36, Four Seasons Resort, comply with the design criteria outlined in Section 12-9A-8, Vail Town Code; WHEREAS, the Council finds that the Special Development District amendments comply with the standards listed Article 12-9A, Special Development District, or that a practical solution consistent with the public interest has been achieved; WHEREAS, the Council finds that the Special Development District amendments are consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; WHEREAS, the Council finds that the Special Development District amendments are compatible with and suitable to adjacent uses and appropriate for the surrounding areas; WHEREAS, the Council finds that the Special Development District amendments June 7, 2022 - Page 60 of 177 Ordinance No. 4, Series of 2022 2 promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality; WHEREAS, the approval of these Special Development District amendments, and the development standards in regard thereto, shall not establish a precedent or entitlements elsewhere within the Town; WHEREAS, all notices as required by the Town of Vail Municipal Code have been sent to the appropriate parties. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Ordinance No. 36, Series of 2017, is hereby repealed and reenacted as follows: (all additions are illustrated with bold italics, deletions are illustrated with strikethrough): Section 1. Purpose of the Ordinance The purpose of Ordinance No. 17 4, Series of 2017 2022, is to amend an Approved Development Plan for Special Development District No. 36 Four Seasons Resort, and to prescribe appropriate development standards for Special Development District No. 36, in accordance with the provisions of Chapter 12-9A, Vail Town Code. The "underlying" zone district for Special Development District No. 36 shall remain Public Accommodation zone district. Section 2. Establishment Procedures Fulfilled, Planning Commission Report The procedural requirements described in Chapter 12-9A of the Vail Town Code have been fulfilled and the Vail Town Council has received the recommendation of approval from the Planning & Environmental Commission for the major amendment to Special Development District No. 36, Four Seasons Resort. Requests for the amendment of a special development district follow the procedures outlined in Chapter 12-9A of the Vail Town Code. Section 3. Special Development District No. 36 The Special Development District is hereby amended to assure comprehensive development and use of the area in a manner that would be harmonious with the general character of the Town, provide adequate open space and recreation amenities, and promote the goals, objectives and policies of the Town of Vail June 7, 2022 - Page 61 of 177 Ordinance No. 4, Series of 2022 3 Comprehensive Plan. Special Development District No. 36, Four Seasons Resort, is regarded as being complementary to the Town of Vail by the Vail Town Council and the Planning & Environmental Commission and has been amended because there are significant aspects of the Special Development District that cannot be satisfied through the imposition of the standard Public Accommodation zone district requirements. Section 4. Development Standards – Special Development District No. 36, Four Seasons Resort Development Plan The Approved Development Plan for Special Development District No. 36, Four Seasons Resort, shall include the following plans and materials provided by Zehren and Associates, Inc., and Hill Glazier Architects, and Alpine Engineering, dated August 8, 2005, and stamped approved by the Town of Vail, dated August 8, 2005 and the plans provided by Braun Associates, dated July, 2017 and the 2022 Floor Plan Exhibit: a. C1. Existing Conditions Plan b. C3. Water and Sanitary Sewer Plan c. C4. Grading and Drainage Plan d. C5. Erosion and Sediment Control Plan e. C6. Shall Utility Plan f. A-2.0.1 Level 1 Plan (132’) g. A-2.0.2 Level 2 Plan (140’, 142’) h. A-2.0.3 Level 3 Plan (152’) i. A-2.0.4 Level 4 Plan (162’) j. A-2.0.5 Level 5 Plan (172’) k. A-2.0.6 Level 6 Plan (182’) l. A-2.0.7 Level 7 Plan (192’) m. A-2.0.8 Level 8 Plan (202’) n. A-2.0.9 Level 9 Plan (212’) o. A-2.0.10 Level 10 Plan (222’) p. A-2.0.11 Roof Plan q. A-5.0.1 Elevations r. A-5.0.2 Elevations s. A-5.0.3 Elevations t. A-8.0.1 Site Plan North u. A-8.0.2 Site Plan South v. A-9.0.1 Landscape Plan North w. A-9.0.2 Landscape Plan South x. A-10.0.1 Building Height Calculations – Absolute Height/Interpolated Contours y. A-10.0.2 Building Height Calculations – Maximum Height/Interpolated Contours June 7, 2022 - Page 62 of 177 Ordinance No. 4, Series of 2022 4 z. A-10.0.3 Building Height Calculations at Proposed Grades aa. A-11.0.1 Existing Circulations bb. A-11.0.2 Proposed Circulations cc. A-12.0.1 Off-site Improvements Plan dd. A-13.0.1 Landscape Area ee. A-14.0.1 Hardscape Area ff. A-15.0.1 Above Ground Site Coverage gg. A-15.0.2 Site Coverage Below Grade hh. A-16.0.1 Streetscape Elevations ii. Level 1 – Existing and Proposed Condition jj. Level 2 – Existing and Proposed Condition kk. Level 3 – Existing and Proposed Condition ll. Level 4 – Existing and Proposed Condition mm. Level 5 – Existing and Proposed Condition nn. Level 6 – Existing and Proposed Condition oo. Level 7 – Existing and Proposed Condition pp. Level 8 – Existing and Proposed Condition qq. Level 9 – Existing and Proposed Condition rr. Level 10 – Existing and Proposed Condition ss. Level 1 and Level 2 – Existing Parking tt. Level 1 and Level 2 – Proposed Parking uu. 2022 Floor Plan Exhibit Permitted Uses – The permitted uses in Special Development District No. 36 shall be as set forth in the development plans referenced in Section 4 of this ordinance. Conditional Use – The conditional uses for Special Development District No. 36, Four Seasons Resort, shall be set forth in Section 12-7A-3 of the Town of Vail Zoning Regulations. All conditional uses shall be reviewed per the procedures as outlined in Chapter 12-16 of the Town of Vail Zoning Regulations. Density – Units per Acre – Dwelling Units, Accommodation Units, Fractional Fee Club Units and Employee Housing Units – The number of units permitted in Special Development District No. 36, Four Seasons Resort, shall not exceed the following: Dwelling Units – 28 32 Accommodation Units – 130 123 Fractional Fee Club Units – 6 June 7, 2022 - Page 63 of 177 Ordinance No. 4, Series of 2022 5 Type III Employee Housing Units – 28 12 Attached Accommodation Units – 15 Density – Floor Area – The gross residential floor area (GRFA), common area and commercial square footage permitted for Special Development District No. 36, Four Seasons Resort, shall be as set forth in the Approved Development Plan referenced in Section 4 of this ordinance. Specifically: GRFA – 177,609 square feet Retail – 2,386 square feet Restaurant/Lounge – 5,946 square feet (seating capacity) Conference Facilities – 11,139 square feet Health Club and Spa – 18,577 square feet Setbacks – Required setbacks for Special Development District No. 36, Four Seasons Resort, shall be as set forth in the Approved Development Plan referenced in Section 4 of this ordinance. Height – The maximum building height for Special Development District No. 36, Four Seasons Resort, shall be as set forth in the Approved Development Plan referenced in Section 4 of this ordinance (89 feet maximum). Site Coverage – The maximum site coverage allowed for Special Development District No. 36, Four Seasons Resort, shall be as set forth in the Approved Development Plan referenced in Section 4 of this ordinance (70,150 square feet above grade or 59%; and 85,091 square feet below grade or 71%). Landscaping – The minimum landscape area requirement for Special Development District No. June 7, 2022 - Page 64 of 177 Ordinance No. 4, Series of 2022 6 36, Four Seasons Resort, shall be as set forth in the Approved Development Plan referenced in Section 4 of this ordinance (35,268 square feet or 30%). Parking and Loading – The required number of off-street parking spaces and loading/delivery berths for Special Development District No. 36, Four Seasons Resort, shall be provided as set forth in the Approved Development Plan referenced in Section 4 of this ordinance (230 spaces required, 235 spaces provided). In no instance shall Vail Road, West Meadow Drive or the South Frontage Road be used for loading/delivery or guest drop-off/pick-up without the prior written approval of the Town of Vail. The required parking spaces shall not be individually sold, transferred, leased, conveyed, rented or restricted to any person other than a condominium owner, fractional fee owner, tenant, occupant or other user of the building, except that six (6) of the required spaces may be utilized by the Holiday House Condominium Association, d/b/a Nine Vail Road Condominiums for parking pursuant to the terms of a recorded Easement Agreement. The foregoing language shall not prohibit the temporary use of the parking spaces for events or uses outside of the building, subject to the approval of the Town of Vail nor shall it limit the number of spaces available for sale or lease to condominium and/or fractional fee owners. Section 5. Approval Agreements for Special Development District No. 36, Four Seasons Resort The approval Special Development District No. 36, Four Seasons Resort shall be conditioned upon the developer's demonstrated compliance with the following approval agreements: 1. That the developer shall provide deed-restricted housing that complies with the Town of Vail Employee Housing requirements (Chapter 12-13) for a minimum of 56 24 employees on the Four Seasons Resort site, and that said deed-restricted employee housing shall be made available for occupancy, and that the deed restrictions shall be recorded with the Eagle County Clerk & Recorder, prior to issuance of a Temporary Certificate of Occupancy for the Four Seasons Resort. 2. That the Memorandum of Understanding as provided in Exhibit A, shall be adopted with the second reading of Ordinance No. 20, Series of 2005. This fulfills approval agreement number 2 of first reading of Ordinance No. 20, Series of 2005. 3. That the developer shall record a drainage easement for Spraddle Creek. June 7, 2022 - Page 65 of 177 Ordinance No. 4, Series of 2022 7 The easement shall be prepared by the developer and submitted for review and approval by the Town Attorney. The easement shall be recorded with the Eagle County Clerk & Recorder's Office prior to the issuance of a Temporary Certificate of Occupancy for the Four Seasons Resort. 4. That the developer shall submit a final exterior building materials list, a typical wall section and complete color renderings for review and approval of the Design Review Board, prior to submittal of an application for a building permit. 5. That the developer shall submit a comprehensive sign program proposal for the Four Seasons Resort for review and approval by the Design Review Board, prior to the issuance of a Temporary Certificate of Occupancy for the Four Seasons Resort. 6. That the developer shall submit a rooftop mechanical equipment plan for review and approval by the Design Review Board prior to the issuance of a building permit. All rooftop mechanical equipment shall be incorporated into the overall design of the hotel and enclosed and visually screened from public view. 7. That the developer shall post a bond to provide financial security for the 150% of the total cost of the required off-site public improvements. The bond shall be in place with the Town prior to the issuance of a building permit. 8. That the developer shall comply with all fire department staging and access requirements pursuant to Title 14, Development Standards, Vail Town Code. This will be demonstrated on a set of revised plans for Town review and approval prior to building permit submittal. 9. That the required Type Ill deed-restricted employee housing units shall not be eligible for resale and that the units be owned and operated by the hotel and that said ownership shall transfer with the deed to the hotel property. 10. That the developer shall coordinate the relocation of the existing electric transformers on the property with local utility providers. The revised location of the transformers shall be part of the final landscape plan to be submitted for review and approval by the Design Review Board. 11. That the developer shall submit a written letter of approval from Nine Vail Road Condominium Association, the Scorpio Condominium Association, and the Alphorn Condominium Association granting access to allow for the construction of sidewalk, drainage, Spraddle Creek relocation, and June 7, 2022 - Page 66 of 177 Ordinance No. 4, Series of 2022 8 landscaping improvements, respectively, prior to the issuance of a building permit. 12. That the developer provides a 6 ft. to 8 ft. heated paver pedestrian walkway from the Frontage Road bus stop adjacent to the West Star Bank then continuing east to Vail Road and then south to the 9 Vail Road property line. All work related to providing these improvements including lighting, retaining, utility relocation, curb and gutter, drainage and landscaping shall be included. A plan shall be submitted for review and approval by the Town and the Design Review Board prior to submittal of a building permit. 13. That the developer shall provide a heated pedestrian walk connection from the Frontage Road to West Meadow Drive. The developer shall record a pedestrian easement for this connection for review and approval by the Town Attorney prior to issuance of a Temporary Certificate of Occupancy. 14. That the developer shall prepare and submit all applicable roadway and drainage easements for dedication to the Town for review and approval by the Town Attorney. All easements shall be recorded with the Eagle County Clerk and Recorder's Office prior to issuance of a Temporary Certificate of Occupancy. 15. That the developer shall be assessed an impact fee of $5,000 for all net increase in pm traffic generation as shown in the revised April 4, 2003, Traffic Study. The net increase shall be calculated using the proposed peak generating trips less the existing Resort Hotel and Auto Care Center trips, respectively being 155-(108+7) = 40 net peak trips @ $5,000 = $200,000. This fee will be offset by the cost of non-adjacent improvements constructed. 16. That the developer shall receive approval for all required permits (CDOT access, ACOE, dewatering, storm-water discharge, etc.) prior to issuance of a building permit. 17. That the developer shall submit a full site grading and drainage plan for review and approval by the Town and the Design Review Board. The drainage plan will need to be substantiated by a drainage report provided by a Colorado professional Engineer, include all drainage, roof drains, landscape drains etc., and how they will connect with the TOV storm system. The developer shall submit all final civil plans and final drainage report to the Town for civil approval by the Department of Public Works, prior to submittal of a building permit. 18. That the developer shall provide detailed civil plans, profiles, details, limits June 7, 2022 - Page 67 of 177 Ordinance No. 4, Series of 2022 9 of disturbance and construction fence for review and civil approval by the Department of Public Works, prior to submittal of a building permit. 19. That the developer shall be responsible for all work related to providing landscaping and lighting within the proposed Frontage Rd. medians. A detailed landscape plan of the medians shall be provided for review and approval by the Design Review Board. 20. That the developer shall provide additional survey information of the south side of the Frontage Road to show existing trees to be removed and additional survey in front of the Scorpio building in order to show accurate grades for the construction of the path from the Four Seasons to the bus stop at West Star bank. Final design shall be reviewed and approved by the Town and the Design Review Board. 21. That the developer is responsible for 100% of final design improvements along West Meadow Drive from the centerline of the road back to the Four Seasons property line from Mayors' park to western most property line of the Four Seasons, including any drainage and grade tie-ins beyond the west property line. This includes all improvements, including, drainage, lighting, art, streetscape enhancements, edge treatments, curbs, heated walks, etc. Final plans shall match and be coordinated with the proposed Town of Vail Streetscape plan for West Meadow Drive and shall be provided for review and approval by the Design Review Board. 22. That the developer shall incorporate public art into the development and shall coordinate all art proposals with the Art in Public Places Board, subject to review and approval by the Design Review Board. 23. That the developer shall resolve all of the following design-related issues for final Design Review Board review and approval: a. Proposed hydrant relocation at the NW corner of the property shall be graded to be level with the proposed sidewalk and landscaping will be located as to not interfere with the operation of the hydrant. b. The cross-slope on the West Meadow Drive walk shall maintain a max. 2.0% cross slope that is sloped towards the road. c. The boulder walls and grading at the SE corner of the property shall be modified as to not impact the existing 2-36" CMP's. d. The foundation wall at the SE corner of the parking structure shall be modified to accommodate the existing Spraddle Creek vault. e. The proposed Spraddle Creek vault and concrete box culvert shall be modified to work with the existing phone vault. f. All known existing utilities shall be shown on a plan with the June 7, 2022 - Page 68 of 177 Ordinance No. 4, Series of 2022 10 proposed drainage and utilities in order to clarify potential conflicts. g. The proposed walk that meets the frontage road walk at the eastern portion of the property shall be realigned slightly to the west to avoid the existing inlet. h. Fire staging turning movements shall be show on plans. i. Retaining walls west of the loading and delivery access drive shall be curved/angled in order to "bench" access drive wall. j. Top of wall elevation for the Frontage Rd-West Meadow Drive path reads as 185.S?(Typo). k. Railings shall be provided for paths where necessary. l. Show edge of existing pavement for Frontage road on civil plans and show match point. m. Erosion control plan shall be updated. n. Show grading around proposed electric vault. o. Show driveway grades, spot elevations on civil plans. p. Show additional TOW/BOW elevations on pool walls. 24. That the developer shall begin initial construction of the Four Seasons Resort within three years from the time of its final approval at second reading of the ordinance amending Special Development District No. 36, Four Seasons Resort, and continue diligently toward the completion of the project. If the developer does not begin and diligently work toward the completion of the special development district or any stage of the special development district within the time limits imposed, the approval of said special development district shall be void. The Planning and Environmental Commission and Town Council shall review the special development district upon submittal of an application to reestablish the special development district following the procedures outlined in Section 12-9A-4, Vail Town Code. 25. That the developer shall commit no act or omission in any way to cause the current operation of the Chateau at Vail to cease until such time as a demolition permit is issued by the Department of Community Development. 26. The exterior building changes associated with this major amendment to SDD No. 36, Four Seasons, are contingent upon the applicant obtaining Town of Vail approval of an associated design review board application for all exterior changes to the property. 27. Prior to issuance of any certificate of occupancy for any unit associated with the altering of the unit mix and/or unit count in the subject property, the applicant shall cause an offsite Town of Vail deed restriction to be recorded with the Eagle County Clerk and Recorder for an employee housing unit, with a minimum of two-bedrooms and 788 square feet, located within the June 7, 2022 - Page 69 of 177 Ordinance No. 4, Series of 2022 11 Town of Vail. 28. Prior to issuance of any building permit for altering the unit mix and/or unit count in the subject property, the applicant shall pay to the Town of Vail a traffic mitigation fee, in the amount of $11,200 per net new P.M. peak hour vehicular trip. 29. Prior to issuance of a certificate of occupancy for the conversion of any of the existing dorm rooms in the subject property, the applicant shall record with the Eagle County Clerk and Recorder a Town of Vail employee housing deed restriction corresponding to square footages per Table 23-2 for each employee. Each dormitory room repurposed equates to two employees for the purposes of mitigation. Section 6. If any part, section subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 7. The repeal or the repeal and re-enactment of any provisions of the Vail Municipal Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 8. All bylaws orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. The repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, heretofore repealed. Section 2. The Town Council hereby finds, determines and declares that this Ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and inhabitants thereof. June 7, 2022 - Page 70 of 177 Ordinance No. 4, Series of 2022 12 Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases by declared invalid. Section 4. The repeal or the repeal and reenactment of any provisions of Vail Municipal Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 5. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, heretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 7th day of June 2022 and a public hearing for second reading of this Ordinance set for the 21st day of June 2022, at 6:00 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. _______________________ Kim Langmaid, Mayor ATTEST: _________________________ Tammy Nagel, Town Clerk READ AND APPROVED ON SECOND READING AND ORDER PUBLISHED in full this 21st day of June 2022. _______________________ Dave Chapin, Mayor ATTEST: June 7, 2022 - Page 71 of 177 Ordinance No. 4, Series of 2022 13 _________________________ Tammy Nagel, Town Clerk June 7, 2022 - Page 72 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM Four Seasons Resort and Residences Vail Proposed Amendments to SDD No. 36, Series 2005, as previously amended by Ordinance No. 20, Series 2005 & Ordinance No. 21, Series of 2017 Updated submittal to the Town of Vail, April 2022 June 7, 2022 - Page 73 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM INTRODUCTION: Four Seasons Resort and Residences Vail (Four Seasons) was acquired in 2016 by Extell Development with a vision and a promise to invest tens of millions of dollars to redevelop a flawed development plan and design into a best-in-class Resort operation. In addition to working with the Town of Vail to amend the Special Development District in 20 17 to address the failed fractional component, Extell completed construction in two phases without ever shutting down the Resort at the Town’s request. Having completed Phase II construction in 2021, and in the midst of navigating the global pandemic, Extell turned its focus to its employment model and its related housing program with the goal of maintaining a consistent and well-trained workforce during the period of COVID impact, a growing housing crisis and well into the future. The SDD for the Four Seasons was passed in 2001 under the Resort’s original ownership and received additional amendments in 2003 and 2005. A condition included in the Resort’s approved SDD was that 28 employee housing units were to be provided onsite; said units were conceived and approved as dormitory -style and double-occupancy in order to house 56 of the employees generated by the new development. To Extell’s knowledge, this form of employee housing was not used significantly before or after the Four Seasons SDD. Moreover, once the Town of Vail codified the employee housing components of the Town Code, the minimum standards permissible by Code were far in excess of the approved employee housing that was part of the Four Seasons SDD; for example, Section 12-13-4 requires new dormitory units to contain “200 sq. ft. minimum for each person occupying the EHU”. By comparison, the Four Seasons units are about 215 usable square feet (excluding closets, cabinets and bathrooms.) Extell found the utilization of the onsite housing to be less than 45 percent most years since Extell acquired the resort. Based upon feedback from employees, the primary impediment to occupancy is the nature of the housing—dorm rooms with shared bathrooms do not offer privacy nor conventional cooking facilities nor the flexibility of living with family and/or pets. June 7, 2022 - Page 74 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM Extell has been working closely with the Town of Vail Community Development Department, Housing Department and the Vail Local Housing Authority with the goals to address the onsite employee housing component that has largely failed; to create a funding mechanism for off-site housing; and to address seven underperforming hotel rooms with a conversion to four additional for-sale dwelling units. In seeking feedback to its application, Extell met with the Planning & Environmental Commission on March 14, 2022, and the Vail Town Council on April 5, 2022. While the application was denied 5-0 by the PEC, and the Town Council remanded the application back to PEC, the input received at both hearings has shaped the updated application as of April 2022, largely prioritizing a reimagined employee housing program for Four Seasons . See the prior March narrative/application for further in-depth discussion and analysis. PROPOSAL: Amendments to SDD #36 are intended to allow for the reconfiguration of the Four Seasons that will include: • Maintaining 12 onsite dorm rooms (24 beds) for J1s, H2Bs and temporary employees; • Replacing the other 16 underutilized onsite deed-restricted employee dorm rooms (32 beds) with offsite deed restrictions in the Town of Vail and EagleVail; • Extell proposes to deed-restrict approximately 28 bedrooms within units that have adequate living, kitchen, bedroom and bathroom spaces. June 7, 2022 - Page 75 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM • Reconfiguring the 16 underutilized employee housing units into 11 hotel accommodation units (AU’s) and reconfiguring an administrative office into 2 additional AUs; • Reclassifying seven existing hotel accommodation units into four dwelling units. Offsite housing mitigation: To meet the feedback about wanting to limit the mitigation region as well as in large part secure deed restrictions within the Town of Vail, Colo., the mitigation region will not move beyond EagleVail, Colo. Extell has negotiated with the owner of the Vail Daily Building in EagleVail to permanently deed restrict the seven 2 -bedroom units in the building in exchange for a substantial cash payment from Extell. The deed restriction will name the Town of Vail as grantee of the deed restrictions and there will be a tiered or waterfall approach to all subsequent leases: (i) Four Seasons and Four Seasons employees will have first access to lease the units, and (ii) in the unlikely event that a vacancy is not filled by Four Seasons, the unit will be listed for rent with preference given to employees working within the Town of Vail. With respect to the 12 remaining onsite employee units, Extell has committed to the Community Development Department to create a new reporting mechanism more reflective of the unique circumstances and to ensure to the Town’s satisfaction that the dorm rooms are occupied and what is being done to fill vacancies in a timely manner. Reporting for the off-site units will use the Town’s standard Annual Verification for Employee Housing Unit form. Extell will also commit to an upgrade of the remaining 24 beds, or 12 bedrooms, that we will keep in place and onsite. Our average occupancy going back to 2016 gives us confidence that we wil l be able to maintain occupancy in these 12 bedrooms with the right number of H2B and J1 Visa seasonal employees rotating through. The upgrades will include renovated bathrooms and refreshed finishes. BACKGROUND: After receiving the 2017 SDD Amendment approval, Extell commenced efforts to consolidate the third-party fractional owners into 6 FFUs and determine which units in the building were able to be converted to DUs and which could be AUs—all as affected by site conditions, including significant constraints by the building’s existing post -tension structural system. The major renovation of the property commenced in spring 2019 for completion before Thanksgiving 2019 with a second phase planned for the same period of time in 2020. However, the onset of the global pandemic caused Extell to indefinitely pause certain elements of the Phase II renovation — in particular the very costly work of subdividing an existing AU into multiple AUs—and delay the onset of other Phase II elements until spring 2021. A snapshot of what exists today and what is proposed hereunder is attached as Exhibit A; in addition, as discussed with Community Development, in the event the employee housing components of this application are not approved, Exhibit B should alternatively be approved to update the floor plans and to approve the conversion of the seven AUs into the four new proposed DUs. June 7, 2022 - Page 76 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM As a result of the prior SDD amendment and Extell’s overall renovation of the Resort, 2022 rooms/residential revenue is projected to be 36% higher than 2017. Within that growth, the fastest growing business segment is the residential rentals; that has grown by nearly 50% since the 2017 SDD amendment. As several competing destinations have all recently announced major new developments from luxury operators (Montage Big Sky, Four Seasons Telluride and the Mayflower development in Deer Valley), the market continues to evolve, consumer tastes continue to gravitate to residential rental product and ultimately we need to adapt to the ever- changing market to remain the premier North America destination. In addition, Extell’s sales of the DUs created in the 2017 amendment resulted in nearly $850,000 of transfer taxes payable to the Town of Vail. Accordingly, our proposal to convert seven underperforming AUs into four new DUs will (i) result in significant additional transfer taxes, and (ii) continue to further position the Resort for the more desirable residential product managed by a hotel company. As mentioned earlier, Four Seasons Resort and Residences Vail was designed and approved in 2001, and broke ground in 2005. It predates the adoption of commercial linkage and inclusionary zoning, as well as the EHU exchange provisions. Instead, the onsite dorm rooms were presented by the original developer as the public benefit portion of the SDD. The dorm rooms are mostly located on the western side of the building on the 3 rd and 4th floors and sandwiched between third party owned condos, the fixed and shared corridor to condos, fractional units and hotel rooms and other critical building infrastructure that cannot be moved. Accordingly, any reconfiguration would need to occur within the same overall general space as today. That leaves approximately 129 linear feet of building frontage on each floor to provide all necessary access and light/air per the building code. A rule of thumb in building design is that 11- 12 feet is a reasonable dimension for room width. Accordingly, this fixed 129’ dimension generally limits us to two three-bedroom units (~46 feet wide each) and a single two-bedroom unit (~35 feet wide) on each floor. Per Town Code, that could house 18.5 employees, which would be a 63% reduction from the current configuration . An alternate way of verifying this calculation is that we currently have approximately 8,000 sqft of employee housing on the 3rd and 4th floors; using the Town code metric of a 3-bedroom requiring a minimum of 1,225 sqft equates our area to just six and a half 3-bedroom apartments. Extell is not interested in reducing our employee housing requirement and we presume, notwithstanding some of PEC’s prior comments, that the Town is also not interested in reducing the quantity of deed restrictions. Offsite EHUs will provide even greater public benefit than what was envisioned with the onsite EHUs: a) they will be occupied; b) their square footage will be approximately 2.5 times greater than the current dorm rooms, c) they will be deed restricted in perpetuity and available for use by non-Four Seasons employees, d) they will appeal to long term residents and those aiming to raise families in Vail and foster a community, and e) they will prevent an additional ~28 bedrooms from succumbing to the pressures of vacation rentals and/or secondary homes and being June 7, 2022 - Page 77 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM removed from the community’s rental product—a scenario that would never happen to dorm rooms. While Extell could continue operating the hotel as it is today, the goal is to implement solutions so that not only is the Resort meeting its 56-bed requirement but is actually housing employees and not finding itself with dozens of underutilized beds. ANALYSIS: Of the 56-bed requirement, Extell found strong occupancy throughout the year of about 24 beds. Peak occupancy in 2019 was 37 tenants; 2018 was 32; 2017 was 38; and 2016 was 30. In working with the Community Development Department, there was a question raised about the required reporting and why it was not raised earlier that occupancy year-round was an issue; when Extell acquired the Resort, the pitch from the brokers and seller was all about the 30,000+ sqft of failed fractional real estate and the dated 200,000+ sqft of hotel rooms, corridors and public a reas that needed a lot of attention. It wasn’t until the Resort was abruptly closed in March 2020 for COVID that Extell began an analysis of every cost associated with a closed Resort and identified the dorm rooms as an area needing further exploration; at that time, Extell analyzed historical payroll logs to determine the historical occupancy and shortly thereafter began conversations with various Town representatives about the underutilized nature and desire to address via an SDD amendment. As mentioned earlier, Extell will work with Community Development to create a new reporting mechanism specific to the Four Seasons. June 7, 2022 - Page 78 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM Expectations with the 2022 SDD Amendment approval: - Pending Town of Vail approvals, purchasers for the four new DUs have been identified and are prepared to close this summer. In addition, all four interested parties have expressed their commitment to include the DUs in the resort’s residential rental program with Four Seasons. These four units are expected to generate approximately $2.5 million of annual gross rental revenue, which will be subject to the Town’s sales and lodging tax. The sales of the four DUs will generate the necessary funds to (i) acquire the onsite deed restrictions, (ii) improve the 12 onsite dorm rooms, (iii) convert and renovate the 16 former dorm rooms into 11 new hotel keys, and (iv) convert and renovate the administrative office space into 2 new hotel keys. - 16 dorm units move offsite, with 14 deed-restricted bedrooms located in EagleVail and the remaining balance (approximately 14 bedrooms) in the Town of Vail. The required Town of Vail offsite housing will be a mixture (in Applicant’s discretion) of (i) deed restricted units owned by third parties, (ii) master leases for up to 4 bedrooms in the aggregate, and (iii) temporary or permanent fee ownership of dwelling units. - 16 dorm-style units are converted to 11 hotel rooms and administrative offices converted to two additional hotel rooms. Criteria for Review: SDD Amendment The SDD chapter of the Town Zoning Code prescribed nine criteria to be used to evaluate the merits of a proposed Special Development District. The SDD sections states: The following design criteria shall be used as the principal criteria in evaluating the merits of the proposed special development district. It shall be the burden of the applicant to demonstrate that submittal material and the proposed development plan comply with each of the following standards, or demonstrate that one or more of them is not applicab le, or that a practical solution consistent with the public interest has been achieved. These criteria and response to each are outlined below. 1. Compatibility: Design compatibility and sensitivity to the immediate environment, neighborhood and adjacent properties relative to architectural design, scale, bulk, building height, buffer zones, identity, character, visual integrity and orientation. Response: There are no changes proposed to the property that would have any effect on the considerations outlined above. 2. Relationship: Uses, activity and density which provide a compatible, efficient and workable relationship with surrounding uses and activity. Response: June 7, 2022 - Page 79 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM Our proposed housing plan does not present any adverse effect on surround ing uses and activity; in fact, it likely improves the situation for surrounding uses and activities as it ensures that ~28 additional bedrooms are not removed from the rental housing stock for vacation homes or vacation rentals. Underutilized dorm rooms are being traded for proper and desirable dwelling units and ensuring that they are forever precluded from non- employee use by being devoted in perpetuity to full-time, year-round employee use. Moreover, with respect to the codified Deed Restriction Exchange Program, please note as follows: (i) the Code specifically provides that it does not apply to employee housing units that are part of an approved development plan, (ii) we are unaware of other owners attempting to correct flaws with more than two dozen bedrooms worth of underutilized employee housing, (iii) our situation is so narrowly tailored to onsite double occupancy dorm rooms that the perceived impact or precedence on others is non-existent, (iv) using the Deed Restriction Exchange Program for this amendment is inconsistent with the program’s typical exchanges, and (v) the operative portion of the Deed Restriction Exchange Program relies upon the gross residential floor area of the new deed restricted unit being a multiple greater than the GRFA for the deed restriction being replaced—which is exactly what we are proposing in our amendment, in that we currently have ~5,325 square feet of employee housing and we are proposing to replace it with more than 13,400 square feet of deed restricted employee housing. Accordingly, a SDD amendment is the proper venue to (i) correct flaws from the prior SDD that have been revealed with the passage of time and (ii) provide practical solutions to better align with mutual housing goals shared amongst applicant, the Town of Vail, employees and surrounding employers. June 7, 2022 - Page 80 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM 3. Parking and Loading: Compliance with parking and loading requirements as outlined in chapter 10 of this title. Response: The 2017 amendment to SDD No. 36 establishes the parking requirement for the Four Seasons to be 230 spaces. The existing SDD also acknowledges that “235 spaces provided”. All parking at the hotel is managed by 24/7 concierge services which includes valet spaces. Below is a summary of the new parking demand from the proposed amendments: Based on the matrix above the proposed amendments will not increase the number of required parking spaces. 4. Comprehensive Plan: Conformity with applicable elements of the Vail comprehensive plan, town policies and urban design plans. Response: Ex Vail’s fundamental goal with this amendment is to correct the underutilized nature of its employee housing and to replace dorm rooms with off-site deed restricted dwellings; making this change will ensure that the deed restricted beds are actually occupied by Vail workforce instead of merely meeting a zoning requirement but sitting underutilized year after year due to an ill-conceived type of housing product. Moreover, Vail’s Land Use Plan specifically sets forth a goal of “Additional employee housing needs should be accommodated at varied sites throughout the community.” Most employers in Vail would attest that Eagle-Vail (and beyond) meets the critical goal of providing housing and a community for employees working within the Town of Vail. In addition, Town Council’s recent actions on Kayak Crossing and the successful 2A ballot initiative both speak to employee housing outside the Town of Vail being a critical component of Vail’s town policies going forward. Four Seasons SDD Amendment Parking Analysis 2/3/2022 Land Use 2017 SDD Amendment 2017 Parking Req. Current Condition Current Condition Parking Req. Proposed Condition Parking Req. For Proposed Condition Net Parking Compared to 2017 Amendment AUs 130 91.0 117 81.9 123 86.1 -4.9 DUs 28 39.2 28 39.2 32 44.8 5.6 FFUs 6 4.2 6 4.2 6 4.2 0 Lockoffs 18 12.6 15 10.5 15 10.5 -2.1 147.0 135.8 145.6 New Parking Req.-1.4 June 7, 2022 - Page 81 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM These goals are consistent with many aspects of the Town’s Comprehensive Plan and town policies and address head on one of the greatest challenges currently facing the Town of Vail. 5. Natural and/or Geologic Hazard: Identification and mitigation of natural and/or geologic hazards that affect the property on which the special development district is proposed. Response: This criterion is not applicable to the proposed amendments. 6. Design Features: Site plan, building design and location and open space provisions designed to produce a functional development responsive and sensitive to natural features, vegetation and overall aesthetic quality of the community. Response: This criterion is not applicable to the proposed amendments. 7. Traffic: A circulation system designed for both vehicles and pedestrians addressing on and off site traffic circulation. Response: The proposed amendments will have no appreciable effect on traffic considerations; given the low utilization and desirability of the onsite employee housing, the employees that were supposed to be housed onsite are already commuting to the resort from off -site housing and have been doing so for 10+ years. Accordingly, our proposed SDD amendment and revised housing plan does not create any additional traffic impact than what exists today. We aren’t moving employee housing down valley; instead, we are trading empty beds for better deed restrictions on desirable housing that will be located either in the Town of Vail or on the bus route in Eagle-Vail. 8. Landscaping: Functional and aesthetic landscaping and open space in order to optimize and preserve natural features, recreation, views and function. Response: This criterion is not applicable to the proposed amendments. 9. Workable Plan: Phasing plan or subdivision plan that will maintain a workable, functional and efficient relationship throughout the development of the special development district. Response: This criterion is not applicable to the proposed amendments. June 7, 2022 - Page 82 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM Exhibit A June 7, 2022 - Page 83 of 177                                                                                                                   Unit Totals Level 1 - Proposed Condition Proposed Project Totals 130 - AU’s Level 1 - Existing Condition Level 1 - Proposed Condition No Change Unit Totals 0 - AU's 0 - DU's 0 - FFU's 0 - EHU's 0 - Lock Offs June 7, 2022 - Page 84 of 177                                                                                                                                               - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 0 - AU’s 0 - DU’s 0 - FFU’s 0 - Lock Offs Level 2 - Proposed Condition Level 2 - Existing Condition Level 2 - Proposed Condition No Change Unit Totals 0 - AU's 0 - DU's 0 - FFU's 0 - EHU's 0 - Lock Offs June 7, 2022 - Page 85 of 177 Level 3 - Existing Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Level 3 - Proposed Condition 12 EHU’s 3101 1 2 3 4 5 6 7 8 9 10 11 12 13 14 3102 (2 lockoffs) (1 lockoff) 2 AU’s converted to 3 AU’s 3103 Unit Totals 14 - AU’s 3 - DU’s 0 - FFU’s 3 - Lock Offs 3 AU's 13 AU's Level 3 - Proposed Condition No Change Unit Totals 16 - AU's 2 - DU's 0 - FFU's 12 - EHU's 1 - Lock Offs June 7, 2022 - Page 86 of 177 Level 4 - Existing Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 23 - AU’s 1 - DU’s 1 - FFU’s 1 - Lock Offs 13 EHU’s 4101 4102 convert to 3 AU’s (1 Lockoff) 4103 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2 AU’s converted to 3 AU’s 1 AU 19 AU's Level 4 - Proposed Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 23 - AU’s 1 - DU’s 1 - FFU’s 1 - Lock Offs 13 EHU’s 4101 4102 convert to 3 AU’s (1 Lockoff) 4103 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2 AU’s converted to 3 AU’s 19 AU's 4101 9 AU's Unit Totals 20 - AU's 1 - DU's 1 - FFU's 13 - EHU's 1 - Lock Offs Unit Totals 28 - AU's 2 - DU's 1 - FFU's 0 - EHU's 1 - Lock Offs June 7, 2022 - Page 87 of 177 Level 5 - Existing Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa Health Club Unit Totals 30 - AU’s 1 - DU’s 1 - FFU’s 0 - Lock Offs 51025103 5101 5104 convert to 2 AU’s convert to 2 AU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 51015104 Lower 26 AU's Level 5 - Proposed Condition No Change Unit Totals 26 - AU's 2 - DU's 2 - FFU's 0 - EHU's 0 - Lock Offs June 7, 2022 - Page 88 of 177 Level 6 - Existing Condition Level 6 - Proposed Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 27 - AU’s 2 - DU’s 2 - FFU’s 2 - Lock Offs 6101 61026103 6104 convert to 3 AU’s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Convert to 1 DU (2 Lockoffs) Top Floor of 2 Level Unit 6101 26 AU's - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 27 - AU’s 2 - DU’s 2 - FFU’s 2 - Lock Offs 6101 61026103 6104 convert to 3 AU’s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Convert to 1 DU (2 Lockoffs) Top Floor of 2 Level Unit 6101 21 AU's 6012 6020 Unit Totals 26 - AU's 2 - DU's 1 - FFU's 0 - EHU's 0 - Lock Offs Unit Totals 21 - AU's 4 - DU's 1 - FFU's 0 - EHU's 0 - Lock Offs June 7, 2022 - Page 89 of 177 Level 7 - Existing Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 22 - AU’s 6 - DU’s 1 - FFU’s 6 - Lock Offs 7101 (2 lockoffs) 7104 (2 lockoffs) 7106 convert to 3 AU’s Convert to 1 DU (2 lockoffs) 1 3 27105 3 EHU’s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1 AU 18 AU's 7018 (3 lockoffs) Level 7 - Proposed Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 22 - AU’s 6 - DU’s 1 - FFU’s 6 - Lock Offs 7101 (2 lockoffs) 7104 (2 lockoffs) 7106 convert to 3 AU’s Convert to 1 DU (2 lockoffs) 1 3 27105 3 EHU’s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 18 AU's 7018 (3 lockoffs) 7106 2 AU's 2 AU's Unit Totals 19 - AU's 6 - DU's 1 - FFU's 3 - EHU's 7 - Lock Offs Unit Totals 22 - AU's 7 - DU's 1 - FFU's 0 - EHU's 7 - Lock Offs June 7, 2022 - Page 90 of 177 Level 8 - Existing Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 14 - AU’s 6 - DU’s 1 - FFU’s 6 - Lock Offs Top Floor of 2 level Unit 8101 Convert to 1 DU (4 lockoffs) 8104 (2 lockoffs) 1 2 3 4 8106 convert to 3 AU’s 1 2 3 4 5 6 7 8 9 10 11 Top Floor of 2 Level Unit 8034 (4 lockoffs) 10 AU's Level 8 - Proposed Condition - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 14 - AU’s 6 - DU’s 1 - FFU’s 6 - Lock Offs Top Floor of 2 level Unit 8101 Convert to 1 DU (4 lockoffs) 8104 (2 lockoffs) 1 2 3 4 8106 convert to 3 AU’s 1 2 3 4 5 6 7 8 9 10 11 Top Floor of 2 Level Unit 8034 (4 lockoffs) 10 AU's Unit Totals 10 - AU's 6 - DU's 1 - FFU's 0 - EHU's 6 - Lock Offs Unit Totals 10 - AU's 6 - DU's 1 - FFU's 0 - EHU's 6 - Lock Offs June 7, 2022 - Page 91 of 177 - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 0 - AU’s 5 - DU’s 0 - FFU’s 0 - Lock Offs 1 2 3 4 5 Level 9 - Existing Condition Level 9 - Proposed Condition No Change Unit Totals 0 - AU's 5 - DU's 0 - FFU's 0 - EHU's 0 - Lock Offs June 7, 2022 - Page 92 of 177 - AU’s (lodge rooms, suites) - DU’s (Penthouse, condos) - FFU’s (Residence Club) - Meeting Facilities - Restaurant / Bar - Spa / Health Club Unit Totals 0 - AU’s 4 - DU’s 0 - FFU’s 0 - Lock Offs 1 2 3 4 Level 10 - Existing Condition Level 10 - Proposed Condition No Change Unit Totals 0 - AU's 4 - DU's 0 - FFU's 0 - EHU's 0 - Lock Offs June 7, 2022 - Page 93 of 177 EXTELL DEVELOPMENT COMPANY 805 THIRD AVENUE, 7TH FLOOR NEW YORK, NY 10012 T. 212 712 6000 F. 212 712 6100 WWW.EXTELL.COM Exhibit B June 7, 2022 - Page 94 of 177 June 7, 2022 - Page 95 of 177 June 7, 2022 - Page 96 of 177 June 7, 2022 - Page 97 of 177 June 7, 2022 - Page 98 of 177 TO: Planning and Environmental Commission FROM: Community Development Department DATE: May 9, 2022 SUBJECT: A request for a recommendation to the Vail Town Council on a major amendment to Special Development District No. 36, Four Seasons, pursuant to Section 12- 9A-10, Amendment Procedures, Vail Town Code, to allow for reconfiguration of existing accommodation units, fractional fee units and dwelling units, and to amend the Employee Housing Plan to relocate a portion of the existing onsite employee housing offsite, located at 1 Vail Road/Lots A-C, Vail Village Filing 2, and setting forth details in regard thereto. (PEC21-0059) Applicant: Four Seasons Resort, represented by Andrew Sellnau Planner: Jonathan Spence I. SUMMARY The Four Seasons Resort is requesting a recommendation to the Vail Town Council for a major amendment to Special Development District (SDD) No. 36, Four Seasons, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for reconfiguration of existing accommodation units and dwelling units, and to amend the Employee Housing Plan to locate a portion of the existing onsite employee housing offsite. On March 14, 2022, following a presentation and discussion, the applicant requested an action on the application, resulting in a unanimous recommendation of denial to the Town Council. On April 5, 2022 the Vail Town Council voted (7-0) to remand the application back to the Planning and Environmental Commission for further review. Based upon Staff’s review of the criteria outlined in Section VII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission (PEC) forward a recommendation of approval, with conditions, of the major amendment to SDD No. 36, Four Seasons, subject to the findings noted in Section VIII of this memorandum. June 7, 2022 - Page 99 of 177 Town of Vail Page 2 II. DESCRIPTION OF REQUEST The applicant, Four Seasons Resort, is requesting a major amendment to SDD No. 36, Four Seasons (Ord. No. 21, Series of 2017), in order to change the unit mix within the resort and to relocate a portion of the existing on-site employee housing to offsite locations. The application has been amended to provide locations for the housing both within the Town of Vail and the adjacent Eagle-Vail community. The current proposal includes the following components: • Replacing up to 16 underutilized onsite deed-restricted employee housing units (EHUs) with offsite deed-restricted employee housing. A portion of the obligation is proposed to be satisfied through the purchase of seven (7) deed restrictions (2-bedroom units) in an existing multifamily building located in Eagle-Vail. The remainder of the obligation is proposed to be met through in town deed restrictions. • The proposed Eagle Vail deed restrictions are proposed to be offered first to the Four Seasons and, secondarily, preference to employees working within the Town of Vail. Staff has approached the applicant and is working with legal counsel on the possibility of the Town of Vail stepping if units are not occupied by Four Seasons employees. Concerns related to timing and vacancies will be addressed by a legal agreement to be presented before the Town Council. • Reconfiguring the underutilized dorm-style employee housing units into 13 additional hotel accommodation units (AUs), and • Reclassifying seven existing accommodation units into four dwelling units. Following the 2017 approval, the Four Seasons completed some of the proposed conversions, opted not to move forward with others and moved forward with other conversions that were not part of the approval. The following chart shows the approved, actual, and proposed unit mixes: Approved Unit Mix 2017 Actual Unit Mix 2021 Proposed Unit Mix 2022 Net Change from 2017 approval 130 AUs 117 AUs 123 AUs -7 AUs 28 Dwelling Units (with 18 AAUs) 28 Dwelling Units (with 15 AAUs) 32 Dwelling Units (with 15 AAUs) +4 DUs - 3 AAUs 6 FFUs 6 FFUs 6 FFUs - 28 EHU 28 EHU 12 EHUs -16 EHUs June 7, 2022 - Page 100 of 177 Town of Vail Page 3 As all the conversions occur within the existing structure, with the exception of the existing EHU balconies that will be converted to AU square footage; there are no changes to development standards such as setbacks, building height, site coverage, and landscaping. Parking: The existing SDD (Ord. No. 21, Series of 2017) demonstrated a total parking capacity of 230 spaces serviced via a 24 hour valet service. The staff analysis of the approved, completed, and proposed work indicates that the net effect on parking is negligible with an overall effect of a reduction in the requirement of 1.4 spaces. Please see page 12 of the applicant’s narrative. Commercial Linkage and Inclusionary Zoning: The amendments to the unit mix accomplished through the 2017 amendments increased the employee mitigation requirements which was addressed with a housing deed restriction for at least one two-bedroom dwelling unit with a minimum of 788 square feet, located within the Town of Vail. Staff analysis of the approved, completed, and proposed work, not including the repurposing of 16 dorm rooms (EHUs) to Accommodation Units, has a relatively negligible effect on the overall employee mitigation requirement for the Four Seasons Resort. As shown on pages 13 and 14 of the applicant’s narrative, the net increase in employees is 1.6 with a mitigation requirement of 20% or .32 employees. With the inclusion of the repurposing of the existing EHUs, the total mitigation requirement for the proposed amendments to SDD No. 36 is 32.32 employees. Existing On-Site Employee Housing Program The existing dormitory style EHUs, comprised of 28 rooms for an occupancy of 56 employees, make up the bulk of the required mitigation measures. The Town has consistently received notarized annual verification forms from the Four Seasons indicating compliance with the deed restrictions. Town of Vail deed restrictions require that units are continuously occupied by qualified residents. Accompanying the signed verification have been lists of employees utilizing the on-site EHUs. Staff has learned from the applicant’s team that the intention of providing the list of names was not only to demonstrate that the occupants were qualified residents, as required, but also to demonstrate that the units were not being occupied at 100% capacity. As this intention is contrary to the verification form (a copy of which has been included as Attachment C.), town staff has not been aware of the ongoing noncompliance with the requirements of the deed restriction. Staff is concerned that the remaining dormitory style rooms will continue to function with less than 100% occupancy, as required by the deed restriction. Proposed Mitigation June 7, 2022 - Page 101 of 177 Town of Vail Page 4 The applicant is proposing to meet the mitigation requirement through the purchase of deed restrictions on an existing multifamily property in Eagle Vail. Please see the applicant’s narrative for details on this approach. The proposal will result in a net increase in restricted square footage in comparison to the existing dorm rooms but equates to the same number of employees mitigated per the code requirements outlined in Table 23-2 and shown below: TABLE 23-2 SIZE OF EMPLOYEE HOUSING UNITS Type Of Unit Minimum Size (GRFA) Number Of Employee s Housed Dormitory 250 1 Studio 438 1.25 1 bedroom 613 1.75 2 bedroom 788 2.25 3 or more bedroom 1,225 3.5 Deed Restriction Exchange Program The applicant is intending to accomplish the off-site deed restrictions through the Special Development District amendment process. Section 12-3-5 of the Vail Town Code provides a mechanism for the removal of a deed restriction on a property. (Please see Section IV, Applicable Planning Documents for this section of the Vail town Code.) As the applicant is proposing an Amendment to the SDD, this section shall only serve as a guide. Per this section, the relocation of a deed restriction is subject to a ratchet effect determined by the location of the existing restriction and the location of the proposed restriction. In this case, the Four Seasons is located within the Commercial Job Core, as defined, and the proposed down valley receiving areas are located outside of the Commercial Job Core. Per Section 12-13-5 D.3.b. of the Vail Town Code, the exchange rate would be three (3) times the GRFA requirement of the existing EHUs. It should be noted that at this time exchanging in town restrictions for out of town restrictions is not permissible under the exchange program. III. BACKGROUND The subject property was once occupied by a 120 room Holiday Inn hotel and a gas station. Ordinance No. 14, Series of 2001 established SDD No. 36, Four Seasons. SDD No. 36, Four Seasons, was subsequently amended to alter the unit mix in 2003 (Ord. No. 9, Series of 2003), 2005 (Ord. No. 20, Series of 2005) and 2017 Ord. No. 21, Series of 2017. The changes that occurred throughout this process are as follows: June 7, 2022 - Page 102 of 177 Town of Vail Page 5 2001 2003 2005 2017 AUs 116 118 122 130 DUs 15 18 16 28 (+ 18 AAUs) FFUs 40 22 19 6 EHUs* 4,971 SF 34 28 28 Total Units 171 + EHUs 192 185 210 * The property was developed prior to the Town of Vail codifying EHU requirements. Though approved in 2001, construction did not begin until 2006 and the project did not open as the Four Seasons until 2010. While there have been changes to the internal programming of the building, no other significant changes have been made to the resort since its opening. IV. APPLICABLE PLANNING DOCUMENTS Staff finds that the following provisions of the Vail Town Code are relevant to the review of this proposal: Title 12, Zoning Regulations, Vail Town Code Chapter 9, Article A. Special Development (SDD) District (in part) 12-9A-1-A: PURPOSE: The purpose of the special development district is to encourage flexibility and creativity in the development of land in order to promote its most appropriate use; to improve the design character and quality of the new development with the town; to facilitate the adequate and economical provision of streets and utilities; to preserve the natural and scenic features of open space areas; and to further the overall goals of the community as stated in the Vail comprehensive plan. An approved development plan for a special development district, in conjunction with the property's underlying zone district, shall establish the requirements for guiding development and uses of property included in the special development district. 12-9A-4: DEVELOPMENT REVIEW PROCEDURES: A. Approval Of Plan Required: Prior to site preparation, building construction, or other improvements to land within a special development district, there shall be an approved development plan for said district. The approved development plan shall establish requirements regulating development, uses and activity within a special development district. B. Preapplication Conference: Prior to submittal of a formal application for a special development district, the applicant shall hold a preapplication conference with the department of community development. The purpose of this meeting shall be to discuss the goals of the proposed special June 7, 2022 - Page 103 of 177 Town of Vail Page 6 development district, the relationship of the proposal to applicable elements of the town's comprehensive plan, and the review procedure that will be followed for the application. C. PEC Conducts Initial Review: The initial review of a proposed special development district shall be held by the planning and environmental commission at a regularly scheduled meeting. Prior to this meeting, and at the discretion of the administrator, a work session may be held with the applicant, staff and the planning and environmental commission to discuss special development district. A report of the department of community development staff's findings and recommendations shall be made at the initial formal hearing before the planning and environmental commission. Within twenty (20) days of the closing of a public hearing on a proposed amendment, the planning and environmental commission shall act on the petition or proposal. The commission may recommend approval of the petition or proposal as initiated, may recommend approval with such modifications as it deems necessary to accomplish the purposes of this title, or may recommend denial of the petition or rejection of the proposal. The commission shall transmit its recommendation, together with a report on the public hearing and its deliberations and findings, to the town council. D. Town Council Review: A report of the planning and environmental commission stating its findings and recommendations, and the staff report shall then be transmitted to the town council. Upon receipt of the report and recommendation of the planning and environmental commission, the town council shall set a date for hearing within the following thirty (30) days. Within twenty (20) days of the closing of a public hearing on a proposed SDD, the town council shall act on the petition or proposal. The town council shall consider but shall not be bound by the recommendation of the planning and environmental commission. The town council may cause an ordinance to be introduced to create or amend a special development district, either in accordance with the recommendation of the planning and environmental commission or in modified form, or the council may deny the petition. If the council elects to proceed with an ordinance adopting an SDD, the ordinance shall be considered as prescribed by the Vail town charter. 12-9A-8: DESIGN CRITERIA AND NECESSARY FINDINGS: A. Criteria: The following design criteria shall be used as the principal criteria in evaluating the merits of the proposed special development district. It shall be the burden of the applicant to demonstrate that submittal material and the proposed development plan comply with each of the following standards, or demonstrate that one or more of them is not applicable, or that a practical solution consistent with the public interest has been achieved: June 7, 2022 - Page 104 of 177 Town of Vail Page 7 1. Compatibility: Design compatibility and sensitivity to the immediate environment, neighborhood and adjacent properties relative to architectural design, scale, bulk, building height, buffer zones, identity, character, visual integrity and orientation. 2. Relationship: Uses, activity and density which provide a compatible, efficient and workable relationship with surrounding uses and activity. 3. Parking And Loading: Compliance with parking and loading requirements as outlined in chapter 10 of this title. 4. Comprehensive Plan: Conformity with applicable elements of the Vail comprehensive plan, town policies and urban design plans. 5. Natural And/Or Geologic Hazard: Identification and mitigation of natural and/or geologic hazards that affect the property on which the special development district is proposed. 6. Design Features: Site plan, building design and location and open space provisions designed to produce a functional development responsive and sensitive to natural features, vegetation and overall aesthetic quality of the community. 7. Traffic: A circulation system designed for both vehicles and pedestrians addressing on and off site traffic circulation. 8. Landscaping: Functional and aesthetic landscaping and open space in order to optimize and preserve natural features, recreation, views and function. 9. Workable Plan: Phasing plan or subdivision plan that will maintain a workable, functional and efficient relationship throughout the development of the special development district. B. Necessary Findings: Before recommending and/or granting an approval of an application for a special development district, the planning and environmental commission and the town council shall make the following findings with respect to the proposed SDD: 1. That the SDD complies with the standards listed in subsection A of this section, unless the applicant can demonstrate that one or more of the standards is not applicable, or that a practical solution consistent with the public interest has been achieved. June 7, 2022 - Page 105 of 177 Town of Vail Page 8 2. That the SDD is consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; and 3. That the SDD is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and 4. That the SDD promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. 12-9A-9: DEVELOPMENT STANDARDS: Development standards including lot area, site dimensions, setbacks, height, density control, site coverage, landscaping and parking shall be determined by the town council as part of the approved development plan with consideration of the recommendations of the planning and environmental commission. Before the town council approves development standards that deviate from the underlying zone district, it should be determined that such deviation provides benefits to the town that outweigh the adverse effects of such deviation. This determination is to be made based on evaluation of the proposed special development district's compliance with the design criteria outlined in section 12-9A-8 of this article. 12-9A-10: AMENDMENT PROCEDURES: B. Major Amendments: 1. Requests for major amendments to an approved special development district shall be reviewed in accordance with the procedures described in section 12-9A-4 of this article. 2. Owners of all property requesting the amendment, or their agents or authorized representatives, shall sign the application. Notification of the proposed amendment shall be made to owners of all property adjacent to the property requesting the proposed amendment, owners of all property adjacent to the special development district, and owners of all property within the special development district that may be affected by the proposed amendment (as determined by the department of community development). Notification procedures shall be as outlined in subsection 12-3-6C of this title. 12-13-5 Employee Housing Unit Deed Restriction Exchange Program A. Purpose: The purpose of this section is to provide occupied livable, affordable employee housing units within the town of Vail through the establishment of an employee housing unit June 7, 2022 - Page 106 of 177 Town of Vail Page 9 deed restriction exchange program. The exchange program allows the town council to release a deed restriction from an existing employee housing unit in exchange for the placement of an employee housing deed restriction on another dwelling unit and/or a fee in lieu payment made to the town of Vail. B. Applicability: The program established under this section applies to existing employee housing units. This shall not apply to any existing employee housing unit that is already price appreciation capped or any employee housing unit established to meet the on site employee mitigation requirements of chapter 23, "Commercial Linkage", or chapter 24, "Inclusionary Zoning", of this title or as part of an approved development plan. C. Definitions: For the purpose of this section: COMMERCIAL JOB CORE: Those areas located south of Interstate 70, east of the intersection of Forest Road and South Frontage Road, north of Vail Mountain, and west of the town of Vail soccer fields on Vail Valley Road, as further defined by exhibit A of this section. EXCHANGE EHU: The existing nonprice appreciation capped employee housing unit or other unit with an employee housing deed restriction that is being proposed to have the deed restriction released as part of this program. PROPOSED EHU: The existing, non-deed restricted dwelling unit that is being proposed to receive an employee housing deed restriction as part of this program. June 7, 2022 - Page 107 of 177 Town of Vail Page 10 D. General Requirements: The town council may approve the removal of an employee housing deed restriction from an existing employee housing unit in exchange for the placement of an employee housing deed restriction, and/or the payment of a fee in lieu, as described in subsection D5 of this section. 1. Exchange EHU Requirements: a. The exchange EHU shall not be part of any employee housing project developed or deed restricted (in part or in whole) by the town of Vail. b. The exchange EHU shall not be part of any on site employee housing mitigation required by inclusionary zoning, commercial linkage, or as part of an approved development plan. c. The property that includes the exchange EHU shall comply with the prescribed development standards (density controls including GRFA and number of units, site coverage, landscaping and parking requirements, etc.), as outlined in the applicable zone district section of this title, upon exchange of the deed restrictions. 2. Proposed EHU Requirements: a. The proposed EHU(s) shall be located within the town of Vail. b. The proposed EHU(s) shall be within a homeowners' association that does not preclude deed restricted units, does not have a right of first refusal, does not have right to approve the sale or the sale contract, or have any other requirements deemed to be similarly restrictive by the administrator. c. The proposed EHU shall comply with the minimum size requirements shown in table 13-2 of this section. TABLE 13-2 MINIMUM SIZE OF PROPOSED EHUs Type Of Unit Minimum Size (GRFA) Studio 438 square feet 1 bedroom 613 square feet 2 bedroom 788 square feet 3+ bedrooms 1,225 square feet d. The proposed EHU shall contain a kitchen facility or kitchenette and a bathroom. e. The property on which the proposed EHU is located shall comply with chapter 10, "Off Street Parking And Loading", of this title. f. The proposed EHU shall have its own entrance. There shall be no interior access from the proposed EHU to any dwelling unit to which it may be attached. 3. Exchange Rate For Proposed EHUs: June 7, 2022 - Page 108 of 177 Town of Vail Page 11 a. If the exchange EHU(s) is within the commercial job core and the proposed EHU(s) is also within the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two (2) times the gross residential floor area (GRFA) of the exchange EHU. b. If the exchange EHU is within the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of three (3) times the gross residential floor area (GRFA) of the exchange EHU. c. If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is inside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of one and one-half (1.5) times the gross residential floor area (GRFA) of the exchange EHU. d. If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two (2) times the gross residential floor area (GRFA) of the exchange EHU. 4. No Credit Given: If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in subsection D3 of this section, the additional gross residential floor area (GRFA) shall not be eligible for use as any form of future credit or for the commercial linkage or inclusionary zoning employee housing mitigation banks established by sections 12-23-7 and 12-24-7 of this title. 5. Fee In Lieu: The applicant may provide a fee in lieu payment to the town of Vail for any fractional portion of the required square footage less than four hundred thirty eight (438) square feet not provided by a proposed EHU, if the proposed EHU does not fulfill the required amount of calculated square footage. a. The town council at its sole discretion may accept fee in lieu payment for the full required square footage only if the exchange EHU was approved prior to July 22, 1994, and has a deed restriction that includes the language stating, "if the unit is rented, it shall be rented only to tenants who are full time employees...". b. The fee in lieu calculated amount shall be paid after approval of the application by the town council, but prior to recording of the deed restriction release. The fee shall be based upon the current fee structure in place at the time of approval. Early payment of the fee in lieu shall not be accepted prior to approval. The approval for deed restriction release shall sunset one year from the date of approval and any fees paid are nonrefundable. c. The town shall use monies collected from fees in lieu to provide incremental new employee housing units. Existing EHU square feet x inclusionary zoning fee = fee in lieu payment E. Fees: The town council shall set an application fee schedule sufficient to cover the cost of town staff time and other expenses incidental to the review of the application. The fee shall be paid at the time of the application and shall not be refundable. F. Review Process: June 7, 2022 - Page 109 of 177 Town of Vail Page 12 1. Submittal Requirements: The administrator shall establish the submittal requirements for an employee housing deed restriction exchange application. A complete list of the submittal requirements shall be maintained by the administrator and filed in the community development department. Certain submittal requirements may be waived and/or modified by the administrator and/or the reviewing body if it is demonstrated by the applicant that the information and materials required are not relevant to the proposed exchange. The administrator and/or the reviewing body may require the submission of additional materials if deemed necessary to properly evaluate the application. 2. Review Procedures: a. Administrator Review: The administrator shall review the application for completeness and compliance with this section, and shall make a determination of completeness and compliance with this section within fourteen (14) days of application submittal. Should the administrator deem that the application is incomplete or not in compliance with this section, the administrator shall deny the application. Should the administrator deem the application is both complete and in compliance with this section, the administrator shall forward the application for review by the Vail local housing authority. b. Vail Local Housing Authority Review: The review of a proposed employee housing deed restriction exchange application shall be held by the Vail local housing authority at a regularly scheduled meeting. A report of the community development department staff's findings and recommendations shall be made at the formal hearing before the Vail local housing authority. Within twenty (20) days of the closing of a public hearing on a proposed amendment, the Vail local housing authority shall act on the application. The Vail local housing authority may recommend approval of the application as initiated, may recommend approval with such modifications as it deems necessary to accomplish the purposes of this title, or may recommend denial of the application. The Vail local housing authority shall transmit its recommendation, together with a report on the public hearing and its deliberations and findings, to the town council. c. Town Council Review: Upon receipt of the report and recommendation of the Vail local housing authority, the town council shall set a date for hearing within the following thirty (30) days. Within twenty (20) days of the closing of a public hearing on the application, the town council shall act on the application. The town council shall consider but shall not be bound by the recommendation of the Vail local housing authority. The town council may approve, either in accordance with the recommendation of the Vail local housing authority or in modified form, or the town council may deny the application. d. Appeal: Administrator and town council decisions may be appealed in accordance with the provisions in section 12-3-3, "Appeals", of this title. 3. Criteria And Findings: a. Criteria: Before acting on an employee housing deed restriction exchange application, the Vail local housing authority and Vail town council shall consider the following criteria with respect to the application: (1) The proximity and accessibility of the proposed EHU(s) to the commercial job core and public transportation; and (2) The size of the proposed EHU(s) in relation to the minimum employee housing unit sizes established for commercial linkage mitigation in section 12-23-3 of this title; and June 7, 2022 - Page 110 of 177 Town of Vail Page 13 (3) The effect of any homeowners' association dues or maintenance fees imposed upon the proposed EHU(s) on the affordability of the proposed unit for an employee; and (4) The correlation between any homeowners' association fees imposed upon the proposed EHU(s) and the services and amenities provided by the homeowners' association; and (5) The extent to which the exchange is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and (6) The extent to which the exchange presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives; and (7) The extent to which the exchange provides for the growth of an orderly viable community and serves the best interests of the community as a whole. b. Necessary Findings: Before recommending and/or granting an approval of an employee housing deed restriction exchange application, the Vail local housing authority and the Vail town council shall make the following findings with respect to the application: (1) The application meets the general requirements of subsection D of this section; and (2) The application is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and (3) The application furthers the general and specific purposes of the zoning regulations, section 12-1-2 of this title, and the employee housing regulations, section 12-13-1 of this chapter; and (4) The application promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. V. ZONING AND SDD NO. 36, FOUR SEASONS RESORT & RESIDENCES ANALYSIS Address: 1 Vail Road Legal Description: Vail Village Filing 2, Lot A - C Existing Zoning: Public Accommodation (PA) Existing Land Use Designation: Resort Accommodations and Services Mapped Geological Hazards: Steep Slope > 40% (Man-Made) View Corridor: None Development Standard Allowed / Required Existing Proposed Change Site Area 10,000 SF 2.32 acres (101,140 SF) No Change Setbacks As set forth in the Approved Development Plan referenced in Section 4 of Ord. No. 20, Series of 2005, Four Seasons SDD No Change Building Height 89’ N/A No Change Density AUs: 130 DUs: 28 (+15 AAUs) AUs: 123 DUs: 32 (with 15 AAUs) AUs: +7 DUs: +4 June 7, 2022 - Page 111 of 177 Town of Vail Page 14 FFUs: 6 EHUs: 28 FFUs: 6 EHUs: 12 FFUs No Change EHUs: -16 GRFA 177,609 SF No Change Retail SF 2,386 SF No Change Restaurant SF 5,946 SF No Change Conference SF 11,139 SF No Change Health Club 18,577 SF No Change Site Coverage 85,091 SF (71%) (Below Grade) 70,150 SF (59%) (Above Grade) No Change Landscaping 35,268 SF (30%) No Change Parking & Loading 230 Spaces 235 Spaces 235 Spaces No Change VI. SURROUNDING LAND USES AND ZONING Existing Land Use: Zoning District: North: Public / Semi-Public General Use (GU) South: Medium Density Residential Two-Family Residential (R) Transition Area High Density Multiple-Family (HDMF) General Use (GU) Public Accommodation (PA) East: Village Master Plan Public Accommodation (PA) Commercial Service Center (CSC) West: Resort Accomm. and Services High Density Multiple-Family (HDMF) Transition Area VII. SDD REVIEW CRITERIA Before acting on an SDD application, the PEC and Town Council shall consider the following factors with respect to the proposed SDD: 1. Compatibility: Design compatibility and sensitivity to the immediate environment, neighborhood and adjacent properties relative to architectural design, scale, bulk, building height, buffer zones, identity, character, visual integrity and orientation. With the exception of the conversion of the existing EHU balconies, the proposed major amendment involves only the reconfiguration of existing interior space and will not impact the immediate environment or neighborhood or adjacent properties relative to architectural design, scale, bulk, building height, buffer zones, identity, character, or visual integrity and orientation. Staff finds the proposal complies with this criterion. June 7, 2022 - Page 112 of 177 Town of Vail Page 15 2. Relationship: Uses, activity and density which provide a compatible, efficient and workable relationship with surrounding uses and activity. The proposed major amendment involves primarily the reallocation of existing front line worker housing off-site. The revised housing plan with mitigation proposed within the Town boundaries and the adjacent Eagle Vail community is more consistent with the requirement (12-24-6) that a minimum of half of the employee housing required is accomplished with on site units. Staff finds the proposal generally complies with this criterion. 3. Parking and Loading: Compliance with parking and loading requirements as outlined in Title 12, Chapter 10, Off Street Parking and Loading, Vail Town Code. The proposed major amendment does not result in a net increase in required parking. The parking improvements completed as part of the 2017 Major SDD Amendment are sufficient. Staff finds the proposal complies with this criterion. 4. Comprehensive Plan: Conformity with applicable elements of the Vail comprehensive plan, town policies and urban design plans. The proposed major amendment conforms to the following elements of the Vail comprehensive plan, town policies: Vail Land Use Plan Chapter II – Land Use Plan Goals / Policies (in part) 1.1 Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.3 The quality of development should be maintained and upgraded whenever possible. 1.12 Vail should accommodate most of the additional growth in existing developed areas (infill areas). 3.1 The hotel bed base should be preserved and use more efficiently. 5.4 Residential growth should keep pace with the market place demands for a full range of housing types. June 7, 2022 - Page 113 of 177 Town of Vail Page 16 Vail Land Use Plan Chapter II – Land Use Plan Goals / Policies (in part) 5.3. Affordable employee housing should be made available through private efforts, assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 5.5. The existing employee housing base should be preserved and upgraded. Additional employee housing needs should be accommodated at varied sites throughout the community. Vail Housing 2027 - A Strategic Plan for Maintaining and Sustaining Community through to the Creation and Support of Resident Housing in Vail Mission: “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.” Policy Statement. Resident Housing as Infrastructure “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.” Economic Value and Community Benefits of Resident Housing Investment 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. 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. June 7, 2022 - Page 114 of 177 Town of Vail Page 17 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). Quality of Guest Experience There is direct linkage between the quality of the guest experience and the supply of local employees The revisions to the housing plan in contrast to the previous version locates all of the proposed mitigation east of Avon, with approximately 50% being located within the Town of Vail. These revisions address many of the concerns raised related to impacts on parking and transportation while also maintaining an in-town workforce, vital to the stability of the community. The possibility of utilizing a portion of the mitigation for Town of Vail employees if not utilized by the Four Seasons represents a tangible benefit to the community. Staff will continue to work with the applicant and the Town’s legal team on this opportunity prior to a first reading before the Town Council. Staff finds the proposal, generally complies with this criterion. 5. Natural and/or Geologic Hazard: Identification and mitigation of natural and/or geologic hazards that affect the property on which the special development district is proposed. The subject property is not located within any natural or geologic hazard. Staff finds the proposal complies with this criterion. 6. Design Features: Site plan, building design and location and open space provisions designed to produce a functional development responsive and sensitive to natural features, vegetation and overall aesthetic quality of the community. The proposal, with the exception of the conversion of the existing EHU balconies, does include any changes to the site plan, building design or location, or open space provisions. Staff finds the proposal complies with this criterion 7. Traffic: A circulation system designed for both vehicles and pedestrians addressing on and off site traffic circulation. June 7, 2022 - Page 115 of 177 Town of Vail Page 18 The revised proposal locates all mitigation east of Avon and places 50% within the Town limits. This significant change from the previous proposal addresses many of the concerns raised about the possible impacts of locating the mitigation further west. Staff finds the proposal complies with this criterion. 8. Landscaping: Functional and aesthetic landscaping and open space in order to optimize and preserve natural features, recreation, views and function. The proposed major amendment does not include any changes to the landscaping or open space on the site. Staff finds the proposal complies with this criterion. 9. Workable Plan: Phasing plan or subdivision plan that will maintain a workable, functional and efficient relationship throughout the development of the special development district. The proposed major amendment only pertains to interior changes to a limited number of the overall units located within the resort. No phasing or subdivision plan is necessary. Staff finds the proposal complies with this criterion. VIII. STAFF RECOMMENDATION Based upon the review of the criteria outlined in Section VII of this memorandum and the evidence and testimony presented, the Community Development Department recommends the PEC forwards a recommendation of approval, with conditions, to the Town Council on a major amendment to Special Development District No. 36, Four Seasons, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for reconfiguration of existing accommodation units, fractional fee units and dwelling units, and to amend the Employee Housing Plan to relocate a portion of the existing onsite employee housing offsite, located at 1 Vail Road/Lots A-C, Vail Village Filing 2, and setting forth details in regard thereto Should the PEC choose to forward a recommendation of approval, with conditions, for this request, the Community Development Department recommends the Commission pass the following motion: “The Planning and Environmental Commission forwards a recommendation of approval, with conditions, to the Town Council for a major amendment to Special Development District No. 36, Four Seasons, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for reconfiguration of existing accommodation units, fractional fee units and dwelling units, and to amend the Employee Housing Plan to locate a portion of the existing onsite employee housing June 7, 2022 - Page 116 of 177 Town of Vail Page 19 offsite, located at 1 Vail Road/Lots A-C, Vail Village Filing 2, and setting forth details in regard thereto.” Should the PEC choose to forward a recommendation of approval, with conditions, for this request, the Community Development Department recommends the following conditions: 1. The exterior building changes associated with this major amendment to SDD No. 36, Four Seasons, are contingent upon the applicant obtaining Town of Vail approval of an associated design review board application for all exterior changes to the property; 2. Prior to issuance of a certificate of occupancy for the conversion of any of the existing dorm rooms in the subject property, the applicant shall record with the Eagle County Clerk and Recorder a Town of Vail employee housing deed restriction corresponding to square footages per Table 23-2 for each employee. Each dormitory room repurposed equated to two employees for the purposes of mitigation. Should the PEC choose to forward a recommendation of approval, with conditions, for this request, the Community Development Department recommends the PEC makes the following findings: “Based upon the review of the criteria outlined in Section VII of the Staff Memorandum to the Planning and Environmental Commission dated May 9, 2022, and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the SDD complies with the standards listed in Section 12-9A-8-A, Vail Town Code, or the applicant has demonstrated that one or more of the standards is not applicable, or that a practical solution consistent with the public interest has been achieved; 2. That the SDD is consistent with the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; 3. That the SDD is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and 4. That the SDD promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” June 7, 2022 - Page 117 of 177 Town of Vail Page 20 IX. ATTACHMENTS A. Revised Project Narrative, with floorplans, April 2022 June 7, 2022 - Page 118 of 177 P L ANNI NG AND E NV I RO NM E NTAL C O M M IS S IO N M ay 9, 2022, 1:00 P M Town Council Chambers and Virtual on Zoom 75 S . Frontage Road - Vail, Colorado, 81657 1.Call to Order 1.1.Register in advance for this webinar https://us02web.zoom.us/webinar/register/W N_tX L0eRs9QKieoSkwg888J w After registering, you will receive a confirmation email containing information about joining the webinar. 1.2.Attendance Present: Reid Phillips, Bill J ensen, Bobby Lipnick, J ohn Rediker, Karen Perez and Henry Pratt Absent: Brian Gillette 2.Main Agenda 2.1.A request for the review of a variance from Section 12-6D-6 Setbacks, Vail Town Code, in accordance with the provisions of Section 12-17-1, Variances, Vail Town Code, to allow encroachment into a setback for an addition, located at 2665 Larkspur Lane/Lot 7, Block 2, Vail I ntermountain Development Subdivision, and setting forth details in regard thereto. (P E C22-0012) Applicant:Deborah W allace Zimmermann, represented by ND G Architecture Planner:J amie Leaman-Miller Planner Leaman-Miller introduced the project and walked the commission through the proposed setback encroachment and the recommended motion. Bill Nutkins, representing the applicant, provided a presentation and spoke to the orientation of the home and existing neighborhood pattern. Bill also spoke to annexation and regulations possibly in place at that time. Spoke to the applicants desires in relation to the home. Bill concluded with his analysis of the required criteria and the neighborhood context. J enson inquired about the utility easement encroachment. Leaman-Miller responded that this would be handled at D RB. Perez asked for confirmation from the applicant that the are no site constraints other than the existing home. Nutkins provided clarification. Perez explained the code provisions and the relationship to this application. June 7, 2022 - Page 119 of 177 Nutkins reiterated his earlier points about existing neighborhood conditions. Phillips spoke to the proposal and how minor accommodations could bring the home into conformance. Philips spoke to the criteria and the project not meeting it. Lipnick asked about the existing nonconforming parking. Nutkins asked for clarification about the criteria. Pratt spoke to the application and the criteria. Agreed with Commissioner Philips about the ease of compliance. Rediker agreed with others that the criteria is not met and that other solutions do exist. Perez agreed with Rediker and others. Henry Pratt moved to to deny. Karen Perez seconded the motion and it passed (6-0). Absent:(1)Gillette 2.2.A final review of an amendment to a conditional use permit, pursuant to Section 12-9C-3, Conditional Uses, Vail Town Code, and Title 12, Chapter 16, Conditional Use Permits, Vail Town Code, to amend the approved conditional use permit for the buildout of Level 5 of the helipad building. At the time of the East W ing approvals, the uncertainty of uses for this space required a future C UP amendment. Applicant:Vail Health, represented by Braun Associates I nc. Planner:J onathan Spence Planning Manager Spence introduces the request. He talks about the proposed uses. Craig Cohn represents the applicant. Perez asks if the applicant is Vail Clinic I nc? Cohn clarifies that the is parent organization. J ensen asks about the relocation from the professional building to the 5th floor. J ensen asks about the future of the professional building. Spence says that is currently unknown as the hospital evaluates future needs. Spence says the movement should increase the experience for users and employers. Lipnick asks if it will be vacant. Cohn says it will move patient uses from this building to the hospital. The age and condition of the professional building is not conducive for patients to use some floors. The spaces vacated for medical uses are not planned for backfill at the moment. Perez asks what that means for parking? June 7, 2022 - Page 120 of 177 Cohn talks about parking spaces on site. Patient parking will shift from the professional building to hospital. Perez says it’s a sharp narrow turn into the parking structure. I f more users will be going there, she recommends it’s striped. That is her only concern. Cohn says they are making repairs on that ramp that will include the striping. Spence asks about the urgent care use. Cohn says the urgent care use will shift from the first to fifth floor. Rediker asks for public comment. Merv Lapin lives in the neighborhood. He asks if the professional building will eventually be demolished. Cohn says that is not in the plans. Lapin asks if the medical professional building was a concern for the helicopter flight plan. Cohn says it was not. Lapin asks about the land exchange and other agreements in relation to the next application. W hy was Vail Health not involved in the comments related to the Evergreen? Rediker says that comment would be more appropriate with the next application as it relates to that. J ensen and Phillips support this request. Pratt has no comment, Lipnick supports. Rediker thinks the application is straightforward. I t is a permitted conditional use under Town Code. I t complies with 12-16, he is in favor of approval. Henry Pratt moved to to approve with conditions. Bobby Lipnick seconded the motion and it passed (6-0). Absent:(1)Gillette 2.3.A request for review of Major Exterior Alteration, pursuant to Section 12-7H- 7, Exterior Alterations or Modifications, Vail Town Code, to allow for redevelopment of the Evergreen Lodge, located 250 South Frontage Road West/Lot 2W, Block 1, Vail Lionshead Filing 2, and Lot F-1, Vail Village Filing No. 2 and setting forth details in regard thereto. (PE C22-0006) Applicant:HC T Member, L L C represented by Mauriello Planning Group Planner:J onathan Spence Spence introduces the items. The applicant is represented by Dominic Mauriello, Matt Kreilich, and Ross Altheimer with Ten x Ten Landscape Architecture who provided a June 7, 2022 - Page 121 of 177 presentation. Mauriello gives a summary of the P E C comments from the last meeting and discusses ongoing community outreach. He discusses the schedule for next steps. Kreilich gives a presentation on the proposed green roofs. He talks about the proposed square footage for green roofs and precedents for green roofs in similar climates. Lipnick asks if they learned about potential problems of green roofs at altitude. Kreilich says it can be challenging when you slope the green roof sections. Mauriello talked with W alking Mountains about the maintenance of these roofs, confirms that sloping roofs can cause challenges. Flat roofs can reduce the heat island effect. Phillips asks about examples of sloped roofs. At what point is the slope too much for a green roof? He doesn’t think the commission is necessarily disputing the green roofs, but they did have comments about the flat roofs. Kreilich says they are working through the architecture regarding the roof transitions. Lipnick asks if they are proposing native vegetation. Altheimer says they have been using local resources, and it will be a mix of native and adaptive species. He talks about the landscape plan for the green roofs. He talks about types of green roofs systems. He talks about the advantages of flat roofs. J ensen asks if the green roof is the justification for a flat roof? Or is another floor the reason for the flat roofs. Kreilich says they will continue to address this, regarding the previous comments about flat and sloped roofs. Lipnick asks how a pervious roof helps snow management. Altheimer says it helps collect and filter the snow and moisture. Kreilich talks about how flat roofs have proved better for snow management in his previous experience. Lipnick asks if the weight is an issue? Kreilich says the structural engineers design for that. Mauriello says he has seen around Vail that flat roofs have done better than sloped roofs with snow management. He says the applicants are still working to address the concerns around guidelines and sloped roofs as well as maintain the proposed green roof. Pratt asks if the intent is to keep the green roofs green. How much water would this take? I t is a balancing act of sustainability versus water use especially in a drier climate. June 7, 2022 - Page 122 of 177 Ross says utilizing plants from the region can help address this, especially during establishment which is a critical time. Being in the valley, it may also need less water than places like the front range. Rediker echoes Pratt’s concerns. He wants to know about re-using, recycling water on the site to help cut down on water usage. He also wants to know how many estimated gallons per year this would take. Mauriello talks about live beds. He talks about the permitted uses in the district. He talks about the proposed number of units, there is a significant increase in available live beds. He talks about the live bed policy in the Town. He addresses the Lionshead Redevelopment Master Plan (LRMP). He summarizes the presentation and says they will address other commissioner comments from the first meeting in detail at the next meeting. Lipnick emphasizes the importance of a restaurant on site. Mauriello says they have thought about that, considered options like a ghost kitchen for room service or a café or market in the lobby. They are trying to balance the various considerations. J ensen says it’s clear they are complying with the intent of live rooms. I t’s one thing to comply, it’s another to manage the operations. He doesn’t think the restaurant piece is as critical, but perhaps a market would be appropriate. There must be some level of service from a food amenity standpoint. Mauriello says there would be housekeeping on site as well as a front desk. Rediker references revised LRMP, 5.19.3. Opportunities for increasing the 128 units already on site should be evaluated during the development review process. He’s concerned if all owners don’t have to participate in the potential management program it will be more difficult to have all the beds operating. The size of the building is increasing significantly without an increase in accommodation units (A Us). Mauriello says there will be smaller, hotel type units for people to occupy. The experience has been that similar type units have been rented. He doesn’t know how the short-term rentals will be managed yet as they are working through it. He says they have significantly increased the number of keys related to the project. Rediker clarifies there are 135 condominiums and 128 A Us as proposed. Mauriello says there may be some flexibility with the A U number. Pratt asks if the Lion has lock-offs? He asks if they could provide occupancy rates from there or other examples. Mauriello says they can ask around and try and gather some examples. J ensen wants to know what percentage of rentals are single lock-offs. Pratt says Antlers is very successful, but the product occupies a different niche than what is proposed. Rediker references L RMP 5.19. He wants to make sure the proposal is June 7, 2022 - Page 123 of 177 living up to the language here. As a potential higher end product, he is concerned homeowners will not be interested in putting their units into a rental pool. He would like to see a cross-section comparing buildings in the area so the P E C and public could understand the proposed building height and massing. Going back to 2015, he understands that things change but wants to make sure the proposal reflects the comments from that time. There will be concerns from people about the massing along the frontage road. Pratt says the master plan from 2015 did show a gap between the buildings. There was some light and air present before and would like to see more of that. Commissioner Pratt leaves the meeting. Mauriello says the graphics at the time were conceptual. He talks about the proposed stepping for the building. He says they gave a live bed presentation to the council at the time. The applicants also heard the P E C regarding the stream setbacks. Rediker asks for public comment. Ron Robins speaks on behalf of Vail I nternational. He addresses some points from the presentation. The explanation of the green roofs doesn’t address the L RMP requirements for roof forms. He thinks this is an attempt to add another floor and increase the density to the maximum allowable. The green roof will not be green most of the year. He talks about noise reduction and the heat island effect, as well as the proposed plantings. He is concerned about the green roof failing down the road and what that will entail. He says the roof will require substantial irrigation. Regarding the live beds he says the intent is not the application. He wants to know more details about the proposed occupancy as it relates to the different unit types. There is a distinction between available and used units. He talks about property management and the example of the Antlers, which has exemplary on-site management. He doesn’t think owners could be encouraged or required to use on site services. He thinks a massing model will show the building is large for the site. Merv Lapin lives in the neighborhood. He felt that Vail architecture would be applied to Lionshead, he now thinks the opposite is happening. He thinks the modern architecture is out of place here. He asks how you guarantee live beds? He says the P E C has enormous power in regard to variances and encourages them to negotiate for what they want. He says Middle Creek is an important issue in this. He is concerned there is only 20 feet between buildings, as well as a building in the helicopter flightpath. Rediker asks for commissioner comment. Perez encourages the applicant to look at the language with respect to compliance. She references the fiscal goals in the master plan. She agrees that lock-offs don’t necessarily translate to occupied beds. She is concerned about the flat roofs and the size and mass of the project. She is concerned about the potential lack of amenities given the relative isolation of the site. Lipnick encourages the applicant to address fractional units and timeshare units if they will be part of it. How do you guarantee live beds? He would like to see numbers from other examples. He agrees with Perez regarding the amenities on site. June 7, 2022 - Page 124 of 177 Phillips appreciates the additional proposed green space. He wants to explore the possibility of sloping roofs and breaking up the massing. Regarding the beds, he has trouble cornering a developer for a product that would not work in the market. I n his experience, flat roofs are a challenge in Vail. J ensen addresses the live beds. He thinks a fully equipped unit may do better. He shares the concerns about how lock-offs will be used. He shares the concerns about the flat roofs, as well as the mass and scale of the building in relation to the site. Karen Perez moved to to continue to J une 27, 2022. Reid Phillips seconded the motion and it passed (5-0). Absent:(2)Gillette, Pratt 2.4.A request for review of a Conditional Use Permit, pursuant to Section 12- 7H-2 Permitted and Conditional Uses; Basement or Garden Level, and Section 12-7H-3; Permitted and Conditional Uses; First Floor or Street Level, Vail Town Code, in accordance with Title 12, Chapter 16, Conditional Use Permits, Vail Town Code, to allow for dwelling units and attached accommodation units on the basement, garden level or first floor of the redevelopment of the Evergreen Lodge, located 250 South Frontage Road West/Lot 2W, Block 1, Vail Lionshead Filing 2, and Lot F-1, Vail Village Filing No. 2 and setting forth details in regard thereto. (P E C22-0007) Please see the combined staff memorandum, with attachments, included with P E C22-0006. Applicant:HC T Member, L L C represented by Mauriello Planning Group Planner:J onathan Spence Karen Perez moved to to continue to J une 27, 2022. Reid Phillips seconded the motion and it passed (5-0). Absent:(2)Gillette, Pratt 2.5.A request for the review a variance from Section 12-7H-10, Setbacks and Section 12-7H-14 Site Coverage, Vail Town Code, pursuant to Title 12 Chapter 17, Variances, Vail Town Code, related to below grade improvements for the redevelopment of the Evergreen Lodge, located 250 South Frontage Road W est/Lot 2W , Block 1, Vail Lionshead Filing 2, and Lot F-1, Vail Village Filing No. 2 and setting forth details in regard thereto. (P E C22-0008) Please see the combined staff memorandum, with attachments, included with P E C22-0006. Applicant:HC T Member, L L C represented by Mauriello Planning Group Planner:J onathan Spence Karen Perez moved to to continue to J une 27, 2022. Reid Phillips seconded the motion and it passed (5-0). Absent:(2)Gillette, Pratt June 7, 2022 - Page 125 of 177 2.6.A request for a final recommendation to the Vail Town Council on a major amendment to Special Development District No. 36, Four Seasons, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for reconfiguration of existing accommodation units, fractional fee units and dwelling units, and to amend the Employee Housing Plan to locate a portion of the existing onsite employee housing offsite, located at 1 Vail Road/Lots A-C, Vail Village Filing 2, and setting forth details in regard thereto. (P E C21-0059) Applicant:Four Seasons Resort, represented by Andrew Sellnau Planner:J onathan Spence Spence introduces the application and the history of the application. The proposed offsite unit locations were previously indeterminate, they are now within the limits of Vail as well as in Eagle Vail. J ensen asks if some of the rooms would be converted to A Us? Spence confirms. Andrew Sellnau represents the applicant and gives a presentation. He talks about the history of the property. He talks about existing employment and employee housing. He says the utilization of the dorm rooms has been well below capacity. They have worked best for employees on a short-term basis. Sellnau talks about the revised proposal, which would maintain 12 onsite dorm rooms as well as replacing the other 16 onsite deed-restricted dorms rooms with offsite deed restrictions in the Town of Vail and on EagleVail building. He talks about the additional proposed amendments to S D D No. 36. Rediker asks if the rental program is mandatory for condominium owners. Sellnau says is it not mandatory, but from a practical standpoint, rentals have not happened on AirBnB or V RB O. There are 28 condos in the building, 21 or 22 participate in the rental program. Lipnick asks about the unfunctional hotel rooms which would be converted to condominium rooms. Sellnau says they are contiguous, and unusual configurations have contributed to their difficulties. I f they were converted to condominium units it would address some of these configuration issues. Lipnick clarifies that it is an access issue versus views. Sellnau confirms. J ensen asks about the 16 deed-restricted dorm rooms and how those would be converted to hotel rooms. Sellnau details the square footage numbers of the conversion. J ensen asks about where the replacement dorms rooms/beds would be located. Sellnau talks about the calculations involved per town code. He addresses the EagleVail location in the VailDaily building. He summarizes that this is June 7, 2022 - Page 126 of 177 geared towards providing desirable housing for employees versus checking the box. He says the proposed solution addresses the previous concerns from Town Staff and officials. J ensen asks how long it will take to find the additional bedrooms in Vail. Sellnau says it may take some time as there are challenges in town. They are trying to come up with a program they can do as they go along. The new hotel rooms will not be instituted until off-site E HUs can be located. Perez addresses the last P E C meeting for this item. She feels the applicant is not addressing the issue that the dorm rooms are underutilized because they are not appealing or livable. Have you looked into reconfiguring the places you do have to be a leader for affordable housing in town? W hen this project was approved, it was clear that these units had to be in town. She is concerned the Vail Daily building is in a non-residential area. She asks about master leasing some of these units. Sellnau says they would be open to some master leases to address it. I n addition to the deed-restricted units, they are giving the applicants first right to rent the units. The Town of Vail would have next right to fill that vacancy. Perez asks how many units are currently available? Sellnau says none are currently available, as they become available, they would work towards filling them. I n regard to reconfiguring the existing units on site, there are common HOA areas which come into play. Reconfiguring those sites may also result in a reduction of units which they didn’t feel was advisable. Perez asks if they have located any of the Vail sites. Sellnau says not yet. Phillips understands they have inherited this issue. She understands the dorm rooms were $600 per bed, she thinks that was an aggressive price that led to their underutilization. Phillips asks about the original approval and references the requirements for offsite housing. Spence talks about the program for removing deed-restrictions, which is not applicable to this project as it is separate from inclusionary zoning or commercial linkage. Phillips says the point is how difficult it is to maintain employee housing in Vail. He is concerned about the P E C allowing the obligation outside of the town. He appreciates that the proposal is now closer to Vail but is concerned that half of the obligation is still unlocated. He says this is an obligation that relates to the original approval. Spence clarifies that the entire package is under review and staff has undertaken a significant review; Phillips appreciates the effort and bringing the out-of-town options closer. He would like to see employee parking on site. Sellnau says the scenario exists today, regarding the parking concerns. They are taking empty beds and moving them to where they will be used and June 7, 2022 - Page 127 of 177 occupied. He talks about trying to further the Town’s goals of deed- restrictions. Phillips says one of their competitors built an employee housing facility. I t’s important to keep employee housing as close as possible. Spence says the proposal is not above and beyond the requirement of the code. But it is above and beyond the current situation. Phillips agrees but says it is troublesome to remove it from the Vail core. He is concerned about transportation and parking. J ensen mentions converting the dorm rooms to some rooms that year -round employees could live in. He thinks the current rate works for some employees. Rediker asks for public comment. Spence says a letter of support was received this morning. Perez says the proposal is better than the previous but doesn’t think it goes far enough. She doesn’t think the applicants have exhausted all possible avenues in terms of reconfigurations. The proposal needs to go further. Lipnick supports this agenda item. Phillips appreciates the work that has been done. He feels he may be able to support in the future with additional conditions and work. J ensen commends the applicant for looking for solutions. He must respect the original approval, it is critical to maintain the affordable housing base in Vail, at this point he will not support. Rediker says there is a conflict between highest and best use regarding making money for the applicant and the required employee housing. There is an employee housing crisis in town, and this would be a step backwards. I t doesn’t comply with town plans or housing policies. The Vail Daily building is not stable housing as proposed; it is in a commercial zone next to the interstate. He is not convinced that deed-restrictions are the best way to guarantee employee housing as it does not address the affordability problem. I f the dorm-style housing doesn’t work, then convert it to on-site employee housing that is more desirable. The point is to have employees living and working in town full time, which the proposed application does not meet. Karen Perez moved to to deny. Bill J ensen seconded the motion and it passed (4-1). Ayes:(4)Rediker, J ensen, Perez, Phillips Nays:(1)Lipnick Absent:(2)Gillette, Pratt 3.Approval of Minutes 3.1.April 11th, 2022 P E C Results June 7, 2022 - Page 128 of 177 Reid Phillips moved to to approve. Bobby Lipnick seconded the motion and it (5-0). Absent:(2)Gillette, Pratt 4.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 June 7, 2022 - Page 129 of 177 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: Ordinance No. 7, S eries of 2022, Second Reading, an Ordinance A mending Title 12 and Title 14 of the Vail Town Code to A mend the Regulations for B uilding Design and L andscaping in the W ildland Urban I nterface to Reduce the Risk of W ildfire P RE S E NT E R(S ): P aul Cada, W ildland Fire and Greg Roy, S enior Planner AC T IO N RE Q UE S T E D O F C O UNC I L: A pprove, approve with modifications, or deny Ordinance No. 7, Series of 2022, upon second reading. B AC K G RO UND: The Planning and Environmental Commission (P E C) heard this application on February 14th, 2022. The P E C had concerns on removing the minimum 500 square feet exemption and voted (7-0) to recommend approval with the condition that the exemption relating to additions under 500 square feet in S ection 12-11-3 remain. At the May 3rd Town Council meeting, during the review of the building code update, Council indicated they were in support of removing this exemption and the Ordinance has been amended accordingly. S TAF F RE C O M M E ND AT IO N: A pprove, approve with modifications, or deny Ordinance No. 7, S eries of 2022, upon second reading. AT TAC H ME N TS: Description Staff Memorandum Second Reading of Ordinance No. 7 Attachment A. Applicant Narrative 5-17-2022 Attachment B. Ordinance No. 7, Series of 2022 Attachment C. P E C Meeting Minutes 2-14-2022 June 7, 2022 - Page 130 of 177 TO: Town Council FROM: Community Development Department DATE: June 7, 2022 SUBJECT: Second reading of an Ordinance No. 7, Series of 2022, an ordinance to amend Town Code pursuant to Section 12-3-7, Amendment, Vail Town Code, for prescribed regulations amendments to Title 12, Zoning Regulations, and Title 14 Development Standards Vail Town Code, to amend the regulations for building design and landscaping the wildland urban interface to reduce the risk of wildfire, and setting forth details in regard thereto. (PEC22-0002) Applicant: Town of Vail, represented by Paul Cada Planner: Greg Roy I. SUMMARY The applicant, Town of Vail, represented by Paul Cada, is requesting a second reading of Ordinance No. 7, Series of 2022 for a prescribed regulation amendment pursuant to Section 12-3-7 Amendment, Vail Town Code amend the regulations for building design and landscaping the wildland urban interface to reduce the risk of wildfire. II. ACTION REQUESTED OF THE TOWN COUNCIL The Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 7, Series of 2022, upon second reading. III. DESCRIPTION OF REQUEST The Applicant is proposing to update the Vail Town Code to amend sections of Town Code related to wildfire preparedness. The proposed changes are to sections of Town Code that were all amended in 2019 as part of the last round of Wildland Urban Interface (“WUI”) regulations. The intent of this update is to include reskinning projects that currently are not required to comply with WUI regulations. The revisions would also clarify the definition of roofs when applying the regulations to a mansard roof, so that all parts of the mansard roof must meet the regulations. This ordinance also includes language to remove the minimum size of an addition that would qualify to require compliance with the WUI regulations. Currently, additions that are under 500 square feet do not need to comply with WUI-rated building materials. June 7, 2022 - Page 131 of 177 Town of Vail Page 2 IV. BACKGROUND The Planning and Environmental Commission (PEC) heard this application on February 14th, 2022. The PEC had concerns on removing the minimum 500 square feet exemption and voted (7-0) to recommend approval with the condition that the exemption relating to additions under 500 square feet in Section 12-11-3 remain. At the May 3rd Town Council meeting with the review of the building code update, Council indicated they were in support of removing this exemption and the Ordinance reflects that direction. Town Council passed Ordinance No. 7, Series of 2022, on first reading at the May 17, 2022 meeting. V. CRITERIA FOR REVIEW 1. The extent to which the text amendment furthers the general and specific purposes of the zoning regulations; and The proposed text amendments further the general and specific purposes of the zoning regulations by helping to secure the community from fire danger and by reducing the risks of wildfires. The proposed changes will require building materials and landscaping designs that help reduce the spread of fire through use of ignition resistant materials, separation of structures from landscaping, and creation of defensible space. These regulations are designed to require compliance for new construction and will remove the exemptions for small additions of less than 500 square feet of gross floor area and reskins of the exterior of structures. It will allow for repairs of less than 25% of an exterior of a structure without full compliance, similar to the provisions for deck repairs. Staff finds that the proposed text amendment conforms to this criterion. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town; and Staff finds that the proposed prescribed regulations amendments will better implement or achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan. The Vail 2020 Strategic Action Plan and the 2018 Open Lands Plan Update support efforts to reduce the risks of wildfires. Additionally, the Town has already passed a Community Wildfire Protection Plan to help the Town of Vail incorporate Fire Adapted Community recommendations into community design and maintenance, and to help the community take the next step in wildfire preparedness. June 7, 2022 - Page 132 of 177 Town of Vail Page 3 Staff finds that the proposed text amendment conforms to this criterion. 3. The text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and Conditions have progressed since the adoption of the current regulations. Climate change has caused Colorado’s average temperature to rise by two degrees Fahrenheit in the past 30 years. Projections indicate that the state’s average temperature could be five degrees higher by 2050. Rising temperatures result in drier forest conditions and increased wildfire probability. As a result, additional measures are needed in the Town of Vail to plan for, and attempt to reduce, the risk of wildfires. Staff finds that the proposed text amendment conforms to this criterion. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and Staff finds that this text amendment will ensure a harmonious, convenient, workable relationship among land use regulations consistent with the Town's development objectives. The proposed text amendments would apply to new construction, and to all additions. Over time, these regulations will make the community safer from the risks of wildfires and will help to reduce the spread of fires. Staff finds that the proposed text amendment conforms to this criterion. 5. Such other factors and criteria the Planning and Environmental Commission and/or council deem applicable to the proposed text amendments Staff will provide additional information as needed should the PEC and/or council determine other factors or criteria applicable to the proposed text amendments. VI. PLANNING AND ENVIRONMENTAL COMMISSION RECOMMENDATION Should the Vail Town Council choose to approve, Ordinance No. 7, Series of 2022, upon second reading, the Planning and Environmental Commission recommends the Town Council pass the following motion: "The Vail Town Council approves, on second reading, Ordinance No. 7, Series of 2022, an ordinance to amend Town Code pursuant to Section 12-3-7, Amendment, Vail Town Code, for prescribed regulations amendments to Title 14, Zoning Regulations, Vail Town Code, to amend the regulations on building design and landscaping in the Wildland Urban Interface to reduce the risk of wildfire, and setting forth details in regard thereto. (PEC22- 0002)” June 7, 2022 - Page 133 of 177 Town of Vail Page 4 Should the Vail Town Council choose to approve, Ordinance No. 7, Series of 2022, the Planning and Environmental Commission recommends the Town Council makes the following findings: “Based upon a review of Section VII of the February 14, 2022 staff memorandum to the Planning and Environmental Commission, and the evidence and testimony presented, the Vail Town Council finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12-1-2, Purpose, Vail Town Code; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." VII. ATTACHMENTS A. Applicant Narrative, 5-17-2022 B. Ordinance No. 7, Series of 2022 C. PEC Meeting Minutes 2-14-2022 June 7, 2022 - Page 134 of 177 To: Town Council From: Paul Cada, Wildland Program Manager Date: May 17, 2022 Subject: Proposed Amendments to Code for Reduction of Wildfire Hazards I. Background The wildfire situation in the Western US is continuing to grow worse, fueled by climate change, community development and excessive fuel loading. Contemporary scientific studies have pointed to expanded risks to higher elevation communities such as Vail. Since 2001 fires above 8000ft in elevation have nearly tripled in frequency and acres burned. Another study pointed to a near doubling of moderate and high intensity fires during that same period leading to significantly higher damage to ecosystems and the communities that are built within them. This intensification of wildfire events has also led to a steep increase in impacts on communities throughout Colorado and the west. Fires such as December’s Marshall Fire, burning in areas previously not thought of as “at risk” from wildfires are sustaining significant loss. These losses have led to a growing body of research on what is causing both individual and community losses from wildfire. Two studies released in late 2021 point to spatial arrangement of homes (distance between homes) and home hardening and fuels modification in the home ignition zone (within 100 feet of the building) as the two greatest predictors of home survivability. Homes that have been hardened and have good defensible space are statistically much more likely to survive, however this protection is significantly diminished if nearby structures (less than 30 feet separation) catch fire. In 2019 Vail Town Council voted to amend Title 10, 12 and 14 of the town code to incorporate best practices for the use of ignition resistant building materials and landscaping in new projects. These amendments were implemented in the spring of 2020 and have been incorporated into all new construction and significant additions since that point. While significant, these code amendments are only applicable to a relatively small portion of projects within the town. At the current pace it would take an estimated 50 years for the current code to apply to all structures within the community. At the June 1st, 2021 Vail Town Council meeting Vail Fire presented a strategy to accelerate implementation of the Vail Community Wildfire Protection Plan (CWPP), measurably reducing wildfire risk to the entire community. During this meeting Vail June 7, 2022 - Page 135 of 177 Town of Vail Page 2 Town Council conceptually supported amending codes to increase protection of homes built within the Wildland Urban Interface. II. Current Situation The Wildland Urban Interface (WUI) code amendments incorporated into Title 10, 12 and Title 14 define applicability and specific building code requirements to conform with the adopted code. These titles reference each other with respect to scope of the code requirements. At the May 3rd Vail Town Council was presented with Ordinance 8 which includes amendments to Title 10 relating to the WUI code. Vail Town Council voted to follow staff recommendations in adoption of code amendments including the removal of an exemption for additions of less than 500 square feet in size. Ordinance No. 7, Series of 2022 presented today is complementary to Ordinance 8 and amends Title 14 in alignment with changes made to Title 10. Vail Fire proposes that the Town of Vail adopt additional amendments to Title 10 and Title 14 of the municipal code to expand the effectiveness of the codes. These amendments: 1. Eliminate existing exemption for additions of less than 500 square feet (Title 10, Section 7A01.1 and Title 12 Chapter 11-3) 2. Require projects repairing or replacing 26% or more of a structures exterior siding to comply with ignition resistant materials standards (Title 10, Section 7A01.1 and 14-10-5 B 4) 3. Expand ignition resistant landscape standards to all landscaping within the defined limits of construction related disturbance (14-10-3 D) 4. Define all portions of a mansard roof as “roof” and therefore shall be treated as a roof and subject to the requirement for class A roofing materials (14-10-5 G) These code amendments were presented to the Building and Fire Appeals Board (BFCAB) at their meeting on 12/8/2021. The BFCAB did not have significant concerns over the proposed amendments, citing that most projects were already compliant with the proposal. On January 19th, 2022 the Design Review Board (DRB) was presented the same information. The DRB similarly did not have any major concerns regarding the proposed code amendments to Title 14. At the February 14th, 2022 Planning and Environmental Commission (PEC) meeting a similar presentation was made. PEC heard the information presented and engaged in conversation regarding the implications of the proposed code amendments. PEC voted to recommend adoption of all code amendments except for the removal of the existing exemption for additions less than 500 square feet. PEC felt that removing this exemption would put excess burden on projects that were only adding a small addition. During the meeting staff from both the Fire Department and Community Development staff highlighted that most projects today are already meeting the requirements of the proposed code amendments and that these code amendments add very little to no additional costs to the overall projects. Additionally, these changes would make it easier to understand code requirements for proposed projects in Vail. Under the existing and June 7, 2022 - Page 136 of 177 Town of Vail Page 3 proposed code, the only the portion of a structure that is being added or changed needs to meet the adopted WUI code. Staff recommends that Town Council accept the staff recommendation that the 500 square foot exemption be eliminated. At the May 3rd, 2022 Town Council meeting council voted to approved staff recommendations of removing the exemption for additions of less than 500 square feet. The codes as presented in Ordinance No. 7, Series of 2022 are consistent with Ordinance 8 as amended by Town Council. III. Staff Recommendation Approve the following amendments to Ordinance No. 7, Series of 2022 Title 14 Section 10-3 and 10-5 June 7, 2022 - Page 137 of 177 1 5/5/2022 S:\COMMUNITY DEVELOPMENT\PLANNING\GREG\PEC CASES\PEC22-0002\WUI-O022522.DOCX ORDINANCE NO. 7 SERIES 2022 AN ORDINANCE AMENDING TITLES 12 AND 14 OF THE VAIL TOWN CODE TO AMEND THE REGULATIONS FOR BUILDING DESIGN AND LANDSCAPING IN THE WILDLAND URBAN INTERFACE TO REDUCE THE RISK OF WILDFIRE WHEREAS, each year wildfires continue to grow more destructive and impactful to communities across Colorado; WHEREAS, the Town is built in an environment that depends on wildfire to maintain a healthy ecosystem, and is therefore at high risk of encountering wildfires at any given time; and WHEREAS, a wildland-urban interface (“WUI”) code is specifically designed to mitigate the risks from wildfire to life and property by regulation construction materials and methods in sch a way as to resist ignition from wildfires for a safer and more resilient community. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Section 12-11-3(C)(5) of the Vail Town Code is hereby repealed in its entirety. Section 2. Section 14-10-3 of the Vail Town Code is hereby amended as follows: 14-10-3: SITE PLANNING: A. The location and configuration of structures and accessways shall be responsive to the existing topography of the site upon which they are to be located. Grading requirements resulting from development shall be designed to blend into the existing or natural landscape. Any cuts or fills shall be sculptural in form and contoured to blend with the existing natural undisturbed terrain within the property boundary. B. Building siting and access thereto shall be responsive to existing features of terrain rock outcroppings, drainage patterns, and vegetation. C. Removal of trees, shrubs, and other native vegetation shall be limited to removal of those essential for development of the site, those identified as diseased, those essential for creating defensible space, and those found to impact view corridors as further regulated by Title 12, Chapter 22, "View Corridors", of this Code. Mitigation may be required for tree removal. June 7, 2022 - Page 138 of 177 2 5/5/2022 S:\COMMUNITY DEVELOPMENT\PLANNING\GREG\PEC CASES\PEC22-0002\WUI-O022522.DOCX D. All areas disturbed during construction shall be revegetated. Replacement of disturbed soils and vegetation All landscaping within the identified limits of disturbance shall comply with Section 14-10-8 of this Code. If necessary, the Design Review Board may designate allowable limits of construction activity and require physical barriers in order to preserve significant natural features and vegetation upon a site and adjacent sites during construction.. Section 3. Section 14-10-5 of the Vail Town Code is hereby amended as follows: 14-10-5: BUILDING MATERIALS AND DESIGN: A. Intent: The Town is situated within the wildland urban interface where community values intersect with the potential consequences of wildland fires. Wildland fires both big and small have the potential to destroy homes and neighborhoods within the Town. The architecture and chosen materials of a building greatly affect the survivability of that structure in the face of a wildfire. The use of Class A roof coverings and ignition-resistant building materials decrease the hazards to the individual structures structure as well as the surrounding homes. B. Ignition-Resistant Materials: The use of ignition-resistant building materials and designs intended to prevent the spread of fire are required, unless otherwise exempted by Section 12-11-3 of this Code. Vail Fire and Emergency Services is available to provide more information on the use of ignition-resistant materials and designs. Predominantly natural building materials shall be used within the Town. The exterior use of wood, wood siding, native stone, brick, concrete, stucco, and EIFS may be permitted. Concrete surfaces, when permitted, shall be treated with texture and color; however, exposed aggregate is more acceptable than raw concrete. The exterior use of the following siding materials is shall be prohibited: stucco or EIFS with gross textures or surface features that appear to imitate other materials; simulated stone; simulated brick; plastic; and vinyl. 1. The exterior use of any building material, including those not specifically identified by this Section, shall only be permitted, unless otherwise prohibited by this Code, if where the Design Review Board finds: a. That the proposed material is satisfactory in general appearance, quality over time, architectural style, design, color, and texture; b. That the use of the proposed material complies with the intent of the provisions of this Code; and June 7, 2022 - Page 139 of 177 3 5/5/2022 S:\COMMUNITY DEVELOPMENT\PLANNING\GREG\PEC CASES\PEC22-0002\WUI-O022522.DOCX c. That the use of the proposed material is compatible with the structure, site, surrounding structures, and overall character of the Town. 2. This subsection The provisions of this Paragraph B shall apply to the construction, alteration, movement, repair, maintenance and use of any building, structure or premises within the Town, unless otherwise exempt by Section 12-11-3(C)(5) of this Code. Buildings or structures moved into or within the Town of Vail shall comply with the provisions of this Code for new buildings and structures. 3. Repair or replacement of twenty-five percent (25%) or less of a deck surface or support structure is exempt from the ignition-resistant requirements of this subsection Paragraph B. 4. Repair or replacement of twenty-five percent (25%) or less of a building’s exterior siding is exempt from the ignition-resistant requirements of this subsection B. 4.5. Combustible siding, as defined in the Town's adopted building code codes, may be used as long as it does not cover more than thirty- three percent (33%) of a given wall (excluding windows, doors and other openings) and may not be within five (5) feet of the ground level. Combustible siding with which has a profile that may allow ember intrusion, such as wood shake or wood shingle, is prohibited. C. Same or Similar Materials: The same or similar building materials and colors shall be used on main structures and any accessory structures upon the site. Translucent components of greenhouses shall be exempt from this requirement. D. Colors: Exterior wall colors should be compatible with the site and surrounding buildings. Natural colors (earth tones found within the Vail area) should be utilized. Primary colors or other bright colors should be used only as accents and then sparingly such as upon trim or railings. All exterior wall materials shall must be continued down to finished grade thereby eliminating unfinished foundation walls. All exposed metal flashing, trim, flues, and rooftop mechanical equipment shall be anodized, painted or capable of weathering so as to be nonreflective. E. Roof Forms: The majority of roof forms within the Town Vail are gable roofs with a pitch of at least four feet (4') in twelve feet (12'). However, other roof forms are allowed. Consideration of environmental and climatic determinants such as snow shedding, drainage, fire safety and solar exposure should be integral to the roof design. F. Rooflines: Rooflines should be designed so as not to deposit snow on parking areas, trash storage areas, stairways, decks and balconies, or June 7, 2022 - Page 140 of 177 4 5/5/2022 S:\COMMUNITY DEVELOPMENT\PLANNING\GREG\PEC CASES\PEC22-0002\WUI-O022522.DOCX entryways. Secondary roofs, snow clips, and snow guards should be utilized to protect these areas from roof snow shedding if necessary. G. Regulations: All structures shall have Class A roof assemblies or shall have Class A roof covering materials, as defined by the Town's adopted building code. The use of concrete tile, slate, metal, asphalt shingle, fiberglass shingle, and built up tar and gravel roofing may be permitted. Metal roofing, when permitted, shall not reflect direct sunlight onto an adjacent property and shall be surfaced with a low gloss finish or be capable of weathering to a dull finish. Metal roofing, when permitted, shall be of a heavy gauge and designed to provide visual relief to the roof surface (including without limitation, but not limited to, a standing seam). Asphalt and fiberglass shingles, when permitted, shall be designed to provide visual relief through texture, dimension and depth of appearance. For purposes of this subsection G, all parts of a mansard roof are considered “roof” and shall comply with current roofing regulations. The use of wood Wood shake, wood shingles and rolled roofing are prohibited shall not be permitted. Two-family dwellings and multi-family dwellings shall be required to have uniform roof covering materials, unless except when the Design Review Board determines that the materials are compatible, are integral to the architectural style of the structure, and different materials do not share any ridges or planes, but may share a valley. Section 4. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 5. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town and the inhabitants thereof. Section 6. The amendment of any provision of the Vail Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 7. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. June 7, 2022 - Page 141 of 177 5 5/5/2022 S:\COMMUNITY DEVELOPMENT\PLANNING\GREG\PEC CASES\PEC22-0002\WUI-O022522.DOCX INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this ____ day of ____________, 2022 and a public hearing for second reading of this Ordinance set for the ___ day of ____________, 2022, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. _____________________________ Kim Langmaid, Mayor ATTEST: ____________________________ Tammy Nagel, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this ____ day of ________________, 2022. _____________________________ Kim Langmaid, Mayor ATTEST: ____________________________ Tammy Nagel, Town Clerk June 7, 2022 - Page 142 of 177 P L ANNI NG AND E NV I RO NM E NTAL C O M M IS S IO N F ebruary 14, 2022, 1:00 P M Town Council Chambers and Virtual on Zoom 75 S . Frontage Road - Vail, Colorado, 81657 1.Call to Order 1.1.Register in advance for this webinar: https://us02web.zoom.us/webinar/register/W N_tX L0eRs9QKieoSkwg888J w After registering, you will receive a confirmation email containing information about joining the webinar. 1.2.Attendance Present: Ludwig Kurz, Brian Gillette, Rollie Kjesbo, Karen Perez, J enn Bruno, Reid Phillips, Henry Pratt Absent: None 2.Executive Session 2.1.C.R.S. Section 24-6-402(4)(b) - to have a conference with the Town Attorney to receive legal advice on specific legal questions regarding proposed code amendments. 15 min. 3.Main Agenda 3.1.A request for a recommendation to the Vail Town Council for a Prescribed Regulation Amendment pursuant to Section 12-3-7 Amendment, Vail Town Code to amend Section 12-14-17 Setback From Watercourse and add a new Section 12-21-17 Riparian Protection and W aterbody Setback Regulations, Vail Town Code, to change the waterbody setbacks, and setting forth details in regard thereto. (P E C21-0043) 60 min. Applicant:Town of Vail, represented by Pete W adden Planner:Greg Roy Peter W adden, the Watershed Education Coordinator begins presentation. He reviews the changes made to the proposal since J anuary 24th. He talks about the Gore Creek Strategic Plan. He mentions that a healthy creek depends on healthy riparian habitat. He talks about the community input process. He talks about the number of non-conforming properties in town under various scenarios. Under the 25-foot setback, there would be an increase of about 5% of non-conforming properties Perez asks if he is counting structures or number of units? Wadden says structures. June 7, 2022 - Page 143 of 177 Perez confirms the number of units could be higher than the number of structures. Wadden says the current numbers are comparing existing non-conforming structures against conditions under the proposed language. Perez wants to be clear that we’re talking structures not units. Phillips asks about properties on Mill Creek, Booth Creek and Buffehr Creek. Wadden says this includes Gore Creek and its tributaries. Wadden did not find anything that insurance rates would be impacted by non-conformity for multi-family and commercial properties. I nsurance agents don’t ask if a property is non-conforming when setting the rate for a policy. Wadden talks about Town Code 12-18-9, Restoration. Commissioners had expressed concern about the one-year period here. Staff did not feel it was appropriate to address this code language as part of this proposal. Gillette and Perez say this needs to change before code goes into effect. Spence says that can be part of the Planning and Environmental Commission’s (P E C) recommendation to Town Council. Pratt asks if this period can be extended. Spence says that is correct, it hasn’t been a regulatory concern in his time at the town. Perez says it could be an issue with a multi-family building, the one-year period will be deficient for that process. Spence says that can be included in any recommendations to Town Council. Bruno recommends extending the time period to 15-months in the recommendation. Wadden says the effective date of the ordinance can also be included in the recommendation. Gillette thought it would be part of the ordinance. Pratt says this applies to all fire damage; the town has been accommodating with this process and it doesn’t need to be changed for the ordinance today. Phillips feels this issue is separate from the ordinance we’re considering today. Spence says the key word is commenced in the language. Kjesbo clarifies that the Town will work with the owners in these cases. Phillips asks if cleaning up is part of that commencement. June 7, 2022 - Page 144 of 177 Perez asks where that is defined. Spence says it is a working policy. Wadden says they would prefer that conversation is a separate discussion and included outside the language of this ordinance. Wadden and staff see no reason not to delay the effective date of the ordinance. On the positive side it would give property owners additional time to prepare for this ordinance. On the negative side, it would likely create additional non-conforming properties near waterways before the new regulations go into effect. Perez asks if the presentation today was included in the packet? Wadden says it was not. Spence says delayed implementation could be included in the recommendation that the P E C forwards. I t is often that the formal ordinance isn’t completed until prior to Council. He says you’re reviewing the changes to the code not the ordinance itself. Wadden clarifies that the Eagle County setback is 75 feet from the bank and the Environmental Protection Agency recommended setback is 100 ft from the bank. He reviews the methodology for the Ordinary High-W ater Mark (OHW M) and the Two Year Floodline (TY F L). He talks about the benefits and drawbacks of each method. The data the town is proposing to use was put together by River Restoration. The benefit of the TY FL is that it is an objective line from which to regulate. Gillette asks about a creekside project and says a survey will include both of those numbers. W hen it comes down to it, you’ll always have a survey, whichever one number benefits them is the one they’ll use. He thinks we’ve spent too much time on this. Pratt thought that the Army Corps method only applies if you want to appeal the TY F L. Wadden says that is correct. Gillette says we almost get a worse product by including this language in the ordinance because applicants will take the better deal. Wadden says ease of enforcement and recognition is the greatest benefit of the objective line. Gillette says the modeling was necessary to craft the ordinance but maybe not to include in the ordinance. Phillips asks how you establish a usable baseline without using one of these methods. Wadden says that is why staff is recommending this approach, it creates a baseline for the regulation. June 7, 2022 - Page 145 of 177 Phillips says in the last meeting there was a big back and forth about which method to go with. He appreciates that staff is recommending one with an appeals process. At some point we have to back up our setback baseline. Wadden says staff’s opinions is that we should have a baseline to regulate from, in this case the TY FL. He says the OHW M methodology would have been more expensive to apply to the whole town. Phillips clarifies that we backed off the 1.5-year floodline. None of the experts actually said that the 2 year floodline benefitted the river more than the 1.5 year floodline. Wadden talks about the appeals process. W hat was hanged from last time is that the property owner would not need their survey verified by the Army Corps. Staff will review these submissions. Gillette asks about the general variance process. He talks about a scenario of a property accessed by a bridge across a creek, which is not allowed in the ordinance. Spence says that could be addressed in a variance process. Wadden talks about the submittal requirements for an appeal. Gillette asks about this specific language in the ordinance right now. Wadden says this was not currently included but will be included at an administrative level. Perez asks for clarification. Wadden says the decision on submittal requirements would be decided at administrative level but the P E C not staff would have the final review. Perez says she is uncomfortable that there are not currently criteria for the P E C review. W hat are their review criteria? Gillette brings up an example. I f a surveyor says this is the line, who are we to say no. He thinks it should be a staff review that could be appealed to the P E C. Perez says this ordinance is incomplete without that review criteria. Spence says it would be similar to other processes, staff accepts documents from a qualified professional with a stamp. However, it does have to go to a governing body. Perez reiterates she would like the review criteria included. Spence says the process is more of a correction than an appeal. Perez says legally it has to be appealed. Spence says it is similar to the other appeals process. Wadden says that the method would have to follow the Army Corps June 7, 2022 - Page 146 of 177 methodology. Gillette asks what is a shapefile? Wadden says it is a GI S file that shows location of the lines in question. Spence says it allows staff to update the map layer. Gillette asks if the GI S map will be updated based on each property that comes back with data. Wadden confirms. He reiterates why staff is recommending a 25 foot setback. He talks about setbacks in neighboring communities. Bruno asks when the current setback was implemented in Eagle County. Wadden says 2006. Town studies show the 25 foot setback best approximates existing setbacks without reducing them. He addresses the 1.5 vs 2-year flood elevation. The 2 year floodline is a slightly more conservative near average baseline. I n places where the bank is steepest, the difference between the two is very small. I n places where the bank is wider, it increases. Wadden asks why change setbacks from 1976? The Gore Creek Strategic Plan instructs staff to do so. Existing setbacks have been ineffective in protecting Gore Creek. Centerline setbacks are also inequitable. Vail has changed a lot in 50 years, that can be addressed through changing regulations. Gillette talks about letter from Berkshire College. W hy didn’t we adopt those items? Wadden says there is an item to allow for control of noxious weeds. Gillette references other items in letter. Wadden says the best way to address invasive species was allowing property owners to remove those species listed as noxious weeds. Gillette asks about the uses of walkways, pools, patios. Perez references the current language in the code. Wadden says they tried to match it to the existing language regarding what is allowed in setbacks. Spence clarifies the existing language in Town Code 14-10-4. Gillette asks if the ordinance would be better off referencing Town Code 14- 10-4. Spence says there was community concern about that. Gillette says we might not want driveways and parking in this setback. Kjesbo likes the idea of relating the ordinance language to Town Code 14- 10-4. June 7, 2022 - Page 147 of 177 Wadden says the intention was to use the same language as is currently in the code. The change would be how the setback is measured, not what is allowed in the setback. Spence says we don’t want to add new language that is only applicable to this setback,k that raises questions about other setbacks. Gillette is concerned that the current language in the ordinance is confusing. Says we should either reference 14-10-4 or spell it all out. Spence suggests we should reference 14-10-4. Perez says the way it is written it seems to limit only those specific items described. Let’s relate it to 14-10-4. Spence says that was staff’s original approach, they support that approach. Perez references. Section C-1-d Does the word “public” modify the other things enumerated, or does it apply to private things as well. Wadden says private bridges would be addressed through the variance process. Spence says the intent is only public, staff can address the language there. Perez references language “buildings lawfully existing subject to chapter 18.” Wadden says that section addresses non-conforming properties. Kjesbo references letters that asked what you can do with existing non- conforming structures. Spence says you can maintain what is existing as it is. Pratt thinks staff did a good job explaining why they want 25 foot setbacks on tributaries. Since the 25 foot number increases the number of non- conforming structures is there a rationale to allow an option of a 20 foot setback, but a 15 foot riparian zone. Gillette says the Fire Department wanted a 15-foot buffer. Wadden says the proposed setback would create uniformity throughout the town. W hat Pratt is proposing could create challenges with fire protection. Regarding tributaries it is valuable to create uniformity across town. Pratt says the filtration occurs in the riparian zone. Kjesbo asks if the town monitors the stream where it enters and exits the town. How does the water quality change? Wadden says the Town monitors nine sites for insects. At the bottom of the pass the stream has healthy bug populations, by the time you get to Bighorn Park it has failed the standards every year but one since 2009. Pratt asks if somebody is talking about changing the state rules on June 7, 2022 - Page 148 of 177 pesticides. Wadden says it is in discussions. Currently local jurisdictions cannot pass more stringent regulations than what the state has passed. Gillette asks about section C-1. Was that better defined elsewhere? Spence says in the current adopted code there is no allowed path, but it has seemed like a good idea. Wadden talks about the Town approach to informal pathways in the past. Gillette asks about restoration of the first 10 feet. Wadden says language addressing restoration is included. Kurz asks for public input. Wayne Forman represents 1 W illow Bridge and the HOA. He references their letter from February 3rd. He asks about an artificial drainage on their property and would like to see that explicitly excluded. Second, regarding one year reconstruction they would like to see that time period extended with this ordinance. He references Paragraph D-3 says the current language is confusing as to a successful appeal and should be clarified; get rid of clear and convincing evidence language. Dan J ohnson represents the Grand Hyatt Vail. He says last time there was a consensus to have the ordinance take effect J an. 1, 2023. He was surprised not to hear that today and would ask for consideration of that delayed ordinance. Dominic Mauriello represents Evergreen Lodge. He agrees with Forman regarding the section update. You need some criteria for review or change when you can have an appeal. You can have an either or standard where you measure from either line, whichever is less restrictive. He understands from staff that the intent is to measure the streambank with the line, so why not use OHW M. The setback today is a building setback, he talks about what is allowed in a setback. He agrees that that section C-a should be made very clear as there are issues with the existing code. Under B add sidewalks. He talks about parking within setbacks. He likes Pratt’s idea of allowing the exchange of setbacks and no-mow zone on tributaries. I t’s not clear that you can do restoration in the no-mow zone, that should be made clear. Last meeting we heard that if an application comes in prior to the effective day of the ordinance it would be processed with the current rules. Spence confirms. Mauriello suggests putting the effective date in the ordinance. He says things can get lost in the process, the proposal should be complete now. He references instances where the 2 year floodline in the town data is off. Gillette asks if it matters. Mauriello says the model is not accurate in some instances. I f we’re flexible why are we concerned about changing the time outlined in the code for the June 7, 2022 - Page 149 of 177 restoration process. He references the Matterhorn I nn. Spence says staff will take any recommendation forwarded by this committee. Mauriello suggests you should include a complete copy of your comments in the recommendation to Council. I t has been identified that the F E MA mapping is off vertically by 4’ on Middle Creek. Should there be a provision that deals with errors in the mapping of the TY FL? Gillette says those errors can be addressed through the appeals process. Spence says over time the layers will get better and better. D M says look at the setbacks on pg. 28, 29, and 30 of the packet. He supports measuring from the streambank but is concerned about the errors in the mapping. Gillette says every lawyer they’ve heard from has had a problem with the language regarding the appeal. He likes the idea of either-or language. J on Rediker says their needs to be an implementation date. He doesn’t see a benefit to delaying, a delay would allow more non-conforming structures to be built. Mauriello references the setback lines shown on pg. 28 of the packet. He shows the examples on pg. 29 and 30 as well. This reinforces the idea that you also need the OHW M included in the ordinance. Pratt says where you pointed is where there’s a beaver dam, that could affect the high water mark. Bill Hoblitzell says the maps are correctly delineated. Gillette asks about the criteria for the appeal process. He likes the idea of either-or language. Bruno agrees. I f you can appeal with the OHW M, we’re already saying it’s an acceptable method. Property owners can choose one of the methods. Gillette says it could be more of a submittal requirement than appeal process. Wadden asks for commission support. Gillette, Kurz, and Bruno support allowing the property owner to choose the method. The commission supports an effective date of J anuary 1, 2023. Kjesbo says they want all the language in there when it is presented to Council. Perez talks about the enumerations in C-2-a and that it should references section 14. June 7, 2022 - Page 150 of 177 Gillette agrees. He asks about best management practices as mentioned in the ordinance. Wadden says that should be left somewhat broad as the standards of the industry change. Spence suggest the language could say “restoration specific with best management practices.” Kristen Bertuglia is the Environmental Sustainability Director at the Town of Vail. She addresses the “either or” provision. That would take out the objectivity that staff is trying to establish. I f we want to guarantee a win for the creek, the only way to do that is to start with this baseline. I f you let the applicant decide, she’s not certain we’ll end up with additional riparian area, it’s something to consider. Bruno says when you allow an appeal process you’re giving that opportunity anyway. Bertuglia agrees but says that the standard is a little bit higher. Bruno asks for some clear criteria on an appeal process. Bertuglia says it’s important that the Army Corps process is followed. Gillette asks for clarification. Spence says if the board directs staff to review, there would be no appeal process to the P E C. Gillette says staff can verify applicants used the proper procedures. Phillips says the less restrictive measure is a treacherous road to go down.. W hy not adopt the more restrictive of the two, it also eliminates the gamesmanship between the two methods. He talks about the appeals process. From him there wasn’t a consensus to go to the lesser standard. We’ve kicked this can down the road, the less restrictive route doesn’t necessarily set a great baseline to repair the health of the creek. Gillette says the modeling was trying to identify the high water mark, the mark you see when you go out to field survey. Perez doesn’t like eliminating going back to the P E C. The whole idea was to have a public process that allows property owners to make their case. I t’s a balancing act. Pratt says whichever line is better is the wrong way to present it. We need some basic criteria which we can base the regulation on. Spence says it would be incorrect to replace surveyors with the commission. Perez says criteria can be established with a scientific, objective approach. We should establish the criteria to give property owners the opportunity for the appeals process. Gillette says the appeals process is referring to the line used for the setback. June 7, 2022 - Page 151 of 177 Perez says the appeals process is to look at how the ordinance might be burdensome. Gillette says that is addressed by the variance language laid out elsewhere. Spence says this is purely numbers. Perez says we should look at some of the memos that have been received. She asks about the point of the appeals process as presented. Wadden says the point is to allow an applicant to appeal the lines and use the OHW M where the TY F L may be in the wrong area. I t only references those considerations. Perez says there is a legal side to this of why there is an appeals process. Gillette says the memo does not make sense. Spence says the word correction could be substituted for an appeal. An appeal could have the connotation of needing deliberation, while this is more of a correction to the data. Phillips agrees it’s a correction or clarification of the high-water mark. That is separate from the variance process Pratt agrees. Wadden confirms the intent of the appeals process. Specific criteria would be based upon the Army Corps methodology. Spence says we don’t necessarily need criteria for a correction. Gillette says you have to use the Army Corps method, we don’t need to enumerate everything. That is a surveyor ’s job. Spence says there will be specific language for restoration processes following best management processes. Gillette asks about the time period for restoration. Wadden says staff doesn’t believe it should be included in the streambank ordinance because of its impact in other areas. Spence says changing the time period can be included in a recommendation to Town Council. The commission is in favor of the 25 foot setback over the 20 foot setback. The commission is in favor of an effective date of J anuary 1, 2023. Perez clarifies criteria is needed for the correction process not an appeal process. She supports the effective dates, recommending to change the restoration time period, and referencing 14-10-4 in C-2. Bruno says its not an appeal process so much as a correction. June 7, 2022 - Page 152 of 177 Perez asks for clarity from Town Attorney if this correction process meets legal requirements. Spence says he will work with the Town Attorney on this. Brian Gillette moved to continue to February 28, 2022. Henry Pratt seconded the motion and it passed (7-0). 3.2.A request for a recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendment, Vail Town Code, for prescribed regulations amendments to Title 12, Zoning Regulations and Title 14, Development Standards, Vail Town Code, to amend the regulations on building design and landscaping in the W ildland Urban I nterface to reduce the risk of wildfire and setting forth details in regard thereto. (P E C22-0002) 30 min. Applicant:Town of Vail, represented by Paul Cada Planner:Greg Roy Paul Cada is the W ildland Program Manager. Cada gives a presentation on proposed changes to W UI code amendments in Ch. 12 and 14, as well as a separate code proposal for chapter 5. Gillette asks a clarification about the existing exemption for reskins. Gillette is concerned about removing the exemption for additions under 500 square feet. Cada says as written only the part that’s added has to comply. Gillette says from a design standpoint it might not match. Cada says since 2019 we have not encountered a situation where an addition hasn’t met design standards because of that. Gillette gives an example about cedar shakes. Cada says the materials adoption in 2019 doesn’t allow siding with openings. Spence says the exemption doesn’t include prohibited materials. Gillette asks if prior to this was there anything saying you couldn’t use cedar shake. W hy would you have something that didn’t match the rest of the house? Cada clarifies the language from 2019. Gillette says the exemption for tiny additions was there because would burn anyway so why not have it be the same material. Spence says it hasn’t come up in the last two years. Perez says two years might not be enough to say. Gillette agrees with the reskin proposal but doesn’t want to see the exemption changed for additions under 500 square feet. Cada says compliance siding cannot have things like shake. W ill a 250 square foot addition make a difference? Often it includes other things. W hat June 7, 2022 - Page 153 of 177 we;’re trying to do is limit the number of exceptions. The intent as council agreed is how to implement these codes quicker. Spence says if the commission would like to forward a recommendation that this exception is maintained they can do that. Phillips asks for a straw poll. The commission supports maintaining the exemption for additions under 500 square feet. The commission is in favor of the reskin proposal. The commission is in favor of mansard roof proposal. Gillette talks about limits of disturbance, and how often you are required to remove all the trees on site. Cada says that is not true. Gillette asks about a site with 15 foot property lines. Cada references a landscape plan from 272 W Meadow. The Fire Department will work together with projects to identify the best fit. I gnition resistant was non-prescriptive to allow flexibility. Gillette asks if you can have trees withing 15 feet of a house. Cada says on existing structures, existing trees can remain. Spence says there is not a section of the code that says you can’t. I t’s based on the landscape guidelines. Philips says this gives the Fire Department the opportunity to work with homeowners and find the best solution. Spence says staff had the same concerns as Gillette during the initial proposal in 2019 which proved unfounded. Cada talks about the review process with ignition resistant landscape guidelines. No one opposes the landscaping guidelines. Rollie Kjesbo moved to approve, with amendment to keep exemption in 12- 11-3 relating to addition under 500 square feet. Brian Gillette seconded the motion and it passed (7-0). 3.3.A request for a recommendation to the Vail Town Council, pursuant to Section 12-3-7, Amendment, Vail Town Code, for prescribed regulations amendments to Title 14, Development Standards, Vail Town Code, to amend the regulations on landscaping to clarify how landscaping beneath decks should be considered and setting forth details in regard thereto. (P E C22- 0001) The applicant requests this item be tabled to the March 14, 2022 P E C Meeting. 2 min. June 7, 2022 - Page 154 of 177 Applicant:Town of Vail Planner:Greg Roy Rollie Kjesbo moved to table to March 14, 2022. Brian Gillette seconded the motion and it passed (7-0). 3.4.A request for a final recommendation to the Vail Town Council on a major amendment to Special Development District No. 36, Four Seasons, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for reconfiguration of existing accommodation units, fractional fee units and dwelling units, and to amend the Employee Housing Plan to locate a portion of the existing onsite employee housing offsite, located at 1 Vail Road/Lots A-C, Vail Village Filing 2, and setting forth details in regard thereto. (P E C21-0059) This item will be renoticed for a later date. 2 min. Applicant:Four Seasons Resort, represented by Andrew Sellnau Planner:J onathan Spence 4.Approval of Minutes 4.1.J anuary 24, 2022 P E C Results Rollie Kjesbo moved to approve. Karen Perez seconded the motion and it passed (7-0). 5.Adjournment Rollie Kjesbo moved to adjourn. Brian Gillette seconded the motion and it passed (7-0). 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 June 7, 2022 - Page 155 of 177 June 7, 2022 - Page 156 of 177 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: Ordinance No. 11, S eries of 2022, Second Reading, an Ordinance Replacing Chapter 14 of Title 4 of the Vail Town Code to Update S hort-Term Rental Regulations and L icense Requirements P RE S E NT E R(S ): K athleen Halloran, Director of Finance and A lex J akubiec, Revenue Manager AC T IO N RE Q UE S T E D O F C O UNC I L: A pprove, approve with amendments or deny Second Reading Ordinance No. 11, S eries 2022. B AC K G RO UND: B ased on feedback received during the short-term rental (S T R) study presented at Vail Town Council meetings the attached Ordinance No. 11, Series 2022 was drafted to address the evolving concerns of S T R regulation in Vail. The recommended updates to existing regulations include requirements for fire safety inspections, proof of adequate insurance, a flat fee of $150 to cover Town administrative costs, and increases to the fines and penalties for violations. During the first reading, Council struck a provision for an additonal per-bedroom fee to offset impacts to local housing. The code amendments in the Ordinance have an effective date of J anuary 1st, 2023 and current registrants would be required to comply with the new licensing requirements by the next renewal date in the licensing cycle - F ebruary 28th, 2023. S TAF F RE C O M M E ND AT IO N: A pprove, approve with amendments or deny Second Reading Ordinance No. 11, Series 2022. AT TAC H ME N TS: Description 220607 Ordinance 11, Series 2022 220607 Ordinance 11, Series 2022 P P Public Comment June 7, 2022 - Page 157 of 177 __________________________________________________________________________ Memorandum TO: Town Council FROM: Finance Department DATE: June 7, 2022 SUBJECT: Ordinance No. 11, Series of 2022, an ordinance repealing and updating Ordinance No. 19, Series of 2018, providing for adjustments to regulations and fees for short-term rental properties within the Town of Vail. I. SUMMARY The first reading of Ordinance No. 11, Series 2022 was approved with amendments at the May 17, 2022 Council Meeting. The attached ordinance has been amended to reflect the removal of a per-bedroom fee for short-term rental (STR) licensure. Additionally, the ordinance has been amended to include an effective date of January 1s, 2023 with existing registrants required to become compliant by February 28th, 2023(the next renewal date in the current licensing cycle). An additional amendment was made in the violations section so that infractions of the existing regulations occurring before the effective date would be cumulative toward penalties under the new ordinance. During the first reading of Ordinance No. 11, the Council requested additional information regarding the requirements for STR activity insurance. The discussion section of this memo contains the requested information, along with an overview of the other sections of the ordinance. II. BACKGROUND The ordinance was drafted in response to feedback received from the Town Council and community in response to a comprehensive study of STR activity in Vail during the January 17, February 15, March 15, April 5, and May 17, 2022 Vail Town Council meetings. The study was conducted by Economic Planning System Inc. and RRC Associates. III. DISCUSSION The study has presented the challenges that come with managing STR activity while trying to address local housing availability. In the attached ordinance, several updates to the existing STR regulations are included as outlined below:. June 7, 2022 - Page 158 of 177 Require Proof of Adequate Insurance for Short-Term Rental Activity As identified by the Rocky Mountain Insurance Information Institute and Insurance Information Institute, standard homeowner’s insurance policies are generally inadequate on their own to cover claims due to STR activity. In fact, of the more than 15 insurers contacted by staff during the drafting of this ordinance, no agency covers STR activity in a standard homeowner’s policy without limitations or requiring some notice from the homeowner of the activity. Many insurers require an additional endorsement to a homeowner’s policy for the activity, some will not cover the activity at all, and yet others require an entirely different class of policy to cover claims arising from STR activity. Staff recommends requiring proof of adequate insurance as a condition of licensure to not only mitigate impacts to STR owners but also to protect neighboring property owners who may incur claims due to the STR activity they are not engaged in nor required to consent to. Staff recommends requiring proof of a minimum $1.0M coverage for STR activities to mitigate potential risks. This, however, may not be adequate for most STR properties in Town. As was identified in the STR study, the median sale price for an STR property in 2021 was $1.8M and only slightly lower for condominium STRs ($1.75M) and townhomes ($1.6M). Duplexes and single-family homes both averaged higher. While insurance should be adequate to cover the worst-case scenarios and claims, it may be challenging to obtain policies above $1.0M through traditional homeowner’s policy providers. Staff recommends a $1.0M minimum to provide a baseline throughout the community but would recommend individual owners assess their own needs above and beyond this amount. In contacting insurance providers, staff found this type of coverage can be obtained for an additional annual cost ranging from $500 - $4,000, depending on the property and provider. There is a wide array of insurance coverages on the market that would comply with the requirements, and in some cases, it may be more economical for an STR owner to obtain a policy separate from their homeowner’s insurance. Fire Department Inspections Town staff recommends requiring a periodic inspection of all short-term rental units not located in buildings with on-site, 24/7 management. Staff recommends requiring proof of inspection every three years as a condition of renewal of the STR license and verification of the fire and life-safety affidavit in intervening years. In order to stagger inspections of existing STR licensees, staff recommends an effective date of January 1st, 2026 for this requirement. Staff estimates approximately half of all current STR licenses would require an inspection and recommends requiring the following items in the proposed fire safety inspection: 1. Fire extinguishers 2. Adequacy of egress (exits) 3. Egress plan is posted 4. Carbon monoxide detectors 5. Smoke alarms 6. Occupant load 7. Improvised electrical conditions and use of extension cords 8. Use of portable heating appliances June 7, 2022 - Page 159 of 177 9. Outdoor heating appliances 10. Physical address including unit # is provided in a conspicuous manner These items are already required by the existing STR regulations, for which the property owner or manager must sign a notarized affidavit to confirm compliance. Due to an increasing number of instances of non-compliance with these requirements, the Fire Department is recommending mandatory inspections. Some examples of recent incidences include: • A fire caused by mechanical issues in a professionally managed, multi-family STR unit, where smoke detectors were nonfunctioning and inadequately placed. Additionally, no fire extinguishers were found in the unit. Fire extinguishers are required to be placed on every level of the living area, in the garage, and within thirty feet of the kitchen in every STR. • Incorrect disposal of cigarettes in a multi-family STR unit caused a fire. As reported by neighbors, none of the unit’s smoke alarms activated and the fire was only reported when a neighbor entered the unit. • Burning logs were removed by STR guests from a fireplace upon leaving and left on a deck. Transition to STR Licenses To increase requirements for obtaining the right to short-term rent a residential property in the Town of Vail, it is also recommended that the Town transition from an STR registration to an STR license requirement. A license is a legal document that gives official permission to engage in the act of short-term property rental. The existing requirement of a registration does not grant official permission, it is merely signing up or registering the STR property with the Town. Changing the requirement will allow for: • Enhanced enforcement of STR regulations • Enhanced enforcement of STR penalties • Greater staff oversight of STR activity in the Town • Ability to require additional proposed STR Fire Safety Inspections and Insurance requirements Increased Penalties and Fines During the STR study presentation, Council expressed concern over STR properties impacting neighborhood character and community standards. It was questioned whether our current STR enforcement structure is adequate to mitigate these problems. Currently, the town’s STR violation structure has four levels, with the fourth being a revocation of the STR registration for two years. Staff recommends changing this policy by reducing the maximum number of violations from four to three, increasing the fine amounts for each level, and increasing the revocation period from two to three years. June 7, 2022 - Page 160 of 177 Additionally, staff suggests imposing a significant fine of $2,670, the maximum allowed penalty under code, for any STR found operating without a valid license. The purpose of this would be to dissuade non-compliance from unlicensed units. The second reading of Ordinance 11, Series of 2022 updated this section to carry-over violations which occur before the effective date of February 28th, 2023. Below is a summary of the recommended violation and fine structure (unchanged from first reading): Flat-Rate License Fee The Town of Vail’s current license fees are lower than peer communities and are well below the town’s administrative costs for STR enforcement. At the last council meeting, Town Council expressed support for the following Flat Fee for STR licenses to cover administrative costs incurred by the Town. This fee remains low compared to Vail’s peer communities. The proposed fee is unchanged from first reading. This base fee will cover costs to the Town including, but not limited to: • Software dedicated to the enforcement of STR regulations and licensing • Staff time across the finance, fire, and code enforcement departments • Legal costs of enforcement • Monitoring of STR activity in Town IV. ACTION REQUESTED OF COUNCIL Approve, or approve with amendments, the second reading of Ordinance 11, Series of 2022. First Violation $1,500 Second Violation $2,650 Third Violation License Revoked for 3 Years Fourth Violation N/A $2,650 Suggested Fines Vs. Existing Fines Follows four-step fine structure $500 $1,500 $2,500 License Revoked for 2 Years Fine for operating without an approved STR license, each day is a separate violation Annual Estimated Revenue All STR Licenses $150 Per License $375,000 Base Fees (to cover Admin costs) June 7, 2022 - Page 161 of 177 ORDINANCE NO. 11 SERIES 2022 AN ORDINANCE REPEALING AND REENACTING CHAPTER 4-14 OF THE VAIL TOWN CODE, REGARDING SHORT-TERM RENTALS, AND ESTABLISHING A LICENSING PROGRAM FOR SHORT-TERM RENTALS WHEREAS, without regulation by the Town, nuisances created by short-term rentals, such as noise, parking issues and over-occupancy, would negatively impact neighborhoods in the Town; and WHEREAS, the Town wishes to ensure the safety of guests staying in short-term rentals by ensuring that they meet minimal life-safety requirements. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Chapter 4-14 of the Vail Town Code is hereby repealed in its entirety and reenacted as follows: CHAPTER 14 SHORT-TERM RENTALS 4-14-1: PURPOSE AND APPLICABILITY: A. The purpose of this Chapter is to establish a comprehensive licensing program to safeguard the public health, safety, and welfare by regulating and controlling the use, occupancy, location, and maintenance of short-term rentals in the Town. B. This Chapter shall apply to short-term rentals only, as defined herein. This Chapter shall not supersede or affect any private conditions, covenants, or restrictions applicable to short-term rentals. 4-14-2: DEFINITIONS: For purposes of this Chapter, the following terms shall have the following meanings: LEASE: Any agreement, whether verbal or written, by which an owner gives to a tenant, for valuable consideration, possession and use of property or a portion thereof for a definite term, at the end of which term the owner has an absolute right to retake control and use of the property. PRINCIPAL PLACE OF RESIDENCE: The home or place in which one's habitation is fixed and to which one has a present intention of returning after a departure or absence therefrom. In determining what is a principal place June 7, 2022 - Page 162 of 177 of residence, the Town shall consider the criteria set forth in C.R.S. § 31- 10-201(3), as amended. PROPERTY MANAGEMENT FIRM: An entity comprised of one or more professional property managers with all required licenses in good standing, or a group of one or more employees of a lodge or fractional fee club (as those terms are defined in Section 12-2-2 of this Code) who are trained in property management and provide such services to owners of STRs within the lodge or fractional fee club, which entity or group is designated by the STR owner to act as the STR owner's agent regarding the STR. PROFESSIONALLY MANAGED STR: An STR that is managed, operated or controlled by a property management firm. SHORT-TERM RENTAL (STR): A residential dwelling unit, or any room therein, available for lease for a term of less than thirty (30) consecutive days, but excluding bed and breakfasts and accommodation units. 4-14-3: LICENSE REQUIRED: A. General. A current, valid license is required for each STR in the Town. Each STR license is non-transferable. B. Application. For new licenses and renewals, the STR owner or property management firm shall file an application with the Finance Director or designee, on forms supplied by the Town, accompanied by the following: 1. An administrative fee of $150, which administrative fee shall be used by the Town to offset the costs of processing the application; 2. An affidavit, signed by the owner or the property management firm, under penalty of perjury, certifying that the STR is in habitable condition and complies with the health and safety standards set forth in this Chapter; and 3. If the STR is located within a duplex, a copy of a written notice sent by the owner or property manager to the last known address of the record owner of the adjoining residential dwelling unit, by first-class mail at least seven (7) days prior to submission of the application. B. Local Representative. Each application shall include the appointment of a natural person who shall remain within a sixty (60) minute distance of the STR and is available twenty four (24) hours per day, seven (7) days per week, to serve as the local representative for the STR. At least five (5) days prior to any change in such appointment, the STR owner or property management firm shall notify the Town of such change, including new contact information. For an STR located in a building with onsite June 7, 2022 - Page 163 of 177 management services available at all times, if the STR owner uses such services, no local representative appointment shall be required. C. Expiration; Renewal. Each STR license shall expire on February 28 of each calendar year, or when title of the STR transfers to a new owner, whichever occurs first; each change in ownership of a STR shall require a new license. D. Timing. An initial license application shall be filed at least thirty (30) days prior to any advertising of an STR. A renewal application shall be filed by January 31 of the year in which the license expires. E. Revocation. In addition to any other penalties allowed by this Chapter, the Town may revoke any STR license if the Town finds and determines that any violation of this Chapter exists at the STR; provided that the Town provides the licensee with at least fourteen (14) days' prior written notice and an opportunity to be heard prior to revocation. The notice shall include a description of the violation and the date and time when the STR owner may appear and be heard, and the notice shall be either personally served on the STR owner or mailed by first-class United States Mail to the last-known address of the STR owner or property management firm. 4-14-4: INSURANCE: Every STR shall be continuously insured, with minimum limits of $1,000,000. The insurance may be in any of the following forms: property liability insurance; commercial liability insurance; or an endorsement to a homeowner’s policy for coverage of STR activities. Insurance provided by online STR platforms does not qualify as valid insurance under this subsection. 4-14-5: HEALTH AND SAFETY STANDARDS; INSPECTIONS: A. Standards: Each STR shall comply with all of the following standards, at a minimum, at all times while the STR is occupied: 1. Buildings, structures or rooms shall not be used for purposes other than those for which they were designed or intended. 2. Roofs, floors, walls, foundations, ceilings, stairs, handrails, guardrails, doors, porches, all other structural components and all appurtenances thereto shall be capable of resisting any and all forces and loads to which they may be normally subjected and shall be kept in sound condition and in good repair. 3. An operable toilet, sink, and either a bathtub or shower shall be located within the same building, and every room containing a toilet or June 7, 2022 - Page 164 of 177 bathtub/shower shall be completely enclosed by walls, doors, or windows that will afford sufficient privacy. 4. There shall be a sufficient number of trash receptacles to accommodate all trash generated by the occupants, and all receptacles shall comply with Title 5, Chapter 9 of this Code. 5. Occupancy of an STR shall comply with Title 12, Chapter 2 of this Code. 6. The use of portable outdoor fireplaces is prohibited. 7. Electrical panels shall be clearly labeled. 8. All pets shall be subject to Title 6, Chapter 4 of this Code. 9. All items listed in subsection B.2. hereof shall comply with the current Vail Fire Code. 10. Parking for each STR shall comply with all applicable provisions of this Code. All vehicles shall be parked in designated parking areas, and parking is prohibited in any landscaped area. 11. A sign shall be conspicuously inside each STR with the STR license number, the local representative's current contact information, and the physical address of the STR, including unit number if applicable. B. Inspections: 1. When required: a. Each STR, other than those located in buildings with on-site management services available at all times, shall obtain a fire and life safety inspection as a condition of license issuance and every three (3) years thereafter. Requests for inspections shall be made to Vail Fire and Emergency Services at least sixty (60) days prior to the date of the initial license application and at least sixty (60) days prior to the end of each subsequent three (3) year period. b. Notwithstanding the foregoing, each STR that was validly registered with the Town on the date of the ordinance codified in this Section, and is not located in a building with on-site management services available at all times, is eligible for an STR license without an initial inspection, provided that the STR is inspected prior to January 1, 2026 and every three (3) years thereafter. Requests for initial inspections shall be made to Vail Fire and Emergency Services on or before July 1, 2025, and requests for later inspections shall be June 7, 2022 - Page 165 of 177 made at least sixty (60) days prior to the end of each subsequent three (3) year period. 2. Items Inspected: The following will be inspected by Vail Fire and Emergency Services for compliance with the current Vail Fire Code: a. Fire extinguishers; b. Adequacy of egress; c. Posted egress plan; d. Carbon monoxide detectors; e. Smoke alarms; f. Occupant load; g. Improvised electrical conditions and use of extension cords; h. Use of portable heating appliances and outdoor heating appliances; and i. Conspicuous posting of the physical address of the STR. 3. Re-inspection: If an inspection reveals that an STR is not in compliance with this Chapter, a re-inspection shall be required. Re- inspections must be scheduled in advance and may take up to sixty (60) days to complete. 4-14-6: ADVERTISING: Advertising for an STR shall include the STR license number immediately following the description of the STR. 4-14-7: TAXES: All applicable Town Sales and Lodging Taxes for STRs shall be timely collected and remitted. 4-14-8: INITIAL COMPLAINTS: Initial complaints concerning a short-term rental property shall be directed to the local representative. The local representative shall resolve the issue that was the subject of the complaint within sixty (60) minutes, or within thirty (30) minutes if the problem occurs between 11:00 p.m. and 7:00 a.m., including visiting the site if necessary. June 7, 2022 - Page 166 of 177 4-14-9: VIOLATION AND PENALTY: A. Violation: It is unlawful to violate any provision of this Chapter. Each day of violation shall be deemed a separate offense. B. Liability: Each STR owner shall be liable for any and all violations occurring at the STR. A property management firm shall be jointly and severally liable for any and all violations occurring at any of its professionally managed STRs in the Town. C. Civil Enforcement: 1. If the Town chooses civil enforcement, a citation may be served by posting on the front door of the STR, or by personal service on the STR owner or professional management firm, or by mailing first-class U.S. Mail to the last known address of the STR owner or property management firm. 2. Civil violations shall be subject to the following fines and penalties, per STR: First violation in any twelve (12) month period: $1,500 Second violation in any twelve (12) month period: $2,650 3. All penalties shall be paid within fourteen (14) days of the date of the citation. If the civil violation is paid, there shall be no opportunity to challenge or otherwise appeal the violation. If the STR owner disputes the violation, the STR shall file a written protest with the Town within fourteen (14) days of the date of the citation. 4. If the STR protests the citation, the Town shall cancel the citation and proceed to criminal enforcement. 5. If the penalty is not timely paid and no protest is timely filed, the Town may summarily suspend the STR license until the penalty is fully paid. Written notice of such suspension shall be provided to the last-known address of the STR owner, or to the local representative or property management firm. D. Criminal Enforcement: If the Town chooses criminal enforcement or a protest is filed and the civil citation is canceled, a summons and complaint may be served as provided in the Colorado Municipal Court Rules of Civil Procedure. The penalties shall be as set forth in Section 1-4-1 of this Code. E. Suspension: Regardless of the type of enforcement, the third violation in any twelve (12) month period for a single STR, regardless of ownership of the STR, shall result in a three (3) year suspension, June 7, 2022 - Page 167 of 177 commending on the date of the last violation, during which no license shall be granted for such STR. F. Other Remedies: In addition to the penalties described above, the Town shall have any and all remedies provided by law and in equity for a violation of this Chapter, including without limitation: damages; specific performance; and injunctive relief, including without limitation an injunction requiring eviction of any occupants of the STR and an injunction to prohibit the occupancy of any property in violation of this Chapter. G. Prior Violations: Any violations of the prior version of this Chapter shall count toward the number of violations for the particular property. Section 4. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 5. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town and the inhabitants thereof. Section 6. The amendment of any provision of the Vail Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 7. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. Section 8. Effective Date. This ordinance shall take effect as provided by the Vail Town Charter, but the code amendments set forth in this ordinance shall take effect on January 1, 2023, and all registered short-term rentals in the Town shall comply with the new Chapter 4-14 by February 28, 2023. June 7, 2022 - Page 168 of 177 INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 17th day of May, 2022 and a public hearing for second reading of this Ordinance set for the 7th day of June, 2022, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. _____________________________ Kim Langmaid, Mayor ATTEST: ____________________________ Tammy Nagel, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 7th day of June, 2022. _____________________________ Kim Langmaid, Mayor ATTEST: ____________________________ Tammy Nagel, Town Clerk June 7, 2022 - Page 169 of 177 SECOND READING SHORT-TERM RENTAL ORDINANCE 11, SERIES OF 2022 June 7, 2022 - Page 170 of 177 Town of Vail | Finance | 6/7/2022 SHORT-TERM RENTAL ORDINANCE ITEMS Increased Violation Penalties Fire Department Inspections Proof of Insurance Covering STR Activity or Equivalent Coverage $150 License Fee Covering TOV Costs of the Program X Per-bedroom fees eliminated June 7, 2022 - Page 171 of 177 Town of Vail | Finance | 6/7/2022 STR INSURANCE REQUIREMENTS $1.0M dollar minimum coverage provides a baseline for the community Median home sale price in 2021 was $1.8M Homeowner’s policies do not cover STR activity without an additional endorsement, or at minimum, notification of the activity Many insurers do not cover claims arising from STR activity The additional coverage cost is estimated to be between $500-$4,000 per year For many properties in Vail, especially for claims which could affect multiple residential units or individuals, $1.0M may be inadequate coverage. Staff recommends each owner assess their potential needs above this amount. June 7, 2022 - Page 172 of 177 Town of Vail | Finance | 6/7/2022 STR INSURANCE REQUIREMENTS –EXAMPLE NOTICE June 7, 2022 - Page 173 of 177 Town of Vail | Finance | 6/7/2022 Changes upon second reading: •Effective date: January 1, 2023 •Existing registrants must be compliant by the next renewal date, February 28, 2023 •Prior violations will carry over Does Council approve or approve with amendments the second reading of Ordinance 11, Series of 2022? CONCLUSION June 7, 2022 - Page 174 of 177 From:Tammy Nagel To:Stephanie Bibbens Subject:FW: TOV - STR Action Items before the Council Date:Tuesday, May 31, 2022 11:25:49 AM Attachments:image002.png Tammy Nagel Town Clerk 75 S. Frontage Road W. Vail, Colorado 81657 970.479.2136 vailgov.com From: jjmyrick@concordeproduction.com <jjmyrick@concordeproduction.com> Sent: Tuesday, May 31, 2022 9:19 AM To: Council Dist List <TownCouncil@vailgov.com>; Jonathan Staufer <JStaufer@vailgov.com>; Kim Langmaid <KLangmaid@vailgov.com> Subject: TOV - STR Action Items before the Council May 31, 2022 The Honorable Mayor Kim Langmaid and Council Members Town of Vail Vail, Colorado 81657 Re: Short-term Rental Neighborhood Impact Dear Mayor Langmaid and Council Members, I wrote to you on January 31, 2022 and cited the points below as significant concerns June 7, 2022 - Page 175 of 177 for our neighborhood and complex, and, unfortunately, most of these issues will still exist if the action items that you are considering are approved. We do not have a front-desk staff or security to enforce the increase in noise, occupancy and parking violations that have come about with STR business enterprises in our complex. Please consider the impact on neighborhoods, not just the core business district, when approving the action items under consideration. Losing neighborhood and sense of community when Units turned into STR business enterprise with over-bookings, too many vehicles, and after-hour noise disturbances. Enforcement onus placed on HOA, with no purported benefits. Hot-line system of reporting violations to TOV is too cumbersome and not effective. No STR license has been revoked and very few fines issued. How can that be accurate? TOV's response to the violations that were reported has not resulted in fines or suspensions. Burden is placed on the person reporting violation, who is expected to call back if not resolved. STR income not benefitting TOV or valley. Many Owners who rent live out of state. Front Range Renters arrive with coolers and groceries and generate little local revenue. People staying in hotels are generating the most income to TOV. No incentive to encourage long-term rentals. Long-term renters work in and become an established part of the community. There should not be a reduced licensing fee for registered Property Managers. They are benefiting from the rentals and not held financially responsible when there are violations or risk suspension of any kind. Many of their advertisements list more than two to a bedroom. Only issue that will be addressed (5-31-22) Code and safety are merely based on the STR's owners' word. Hotels are held to a higher standard. Violations are handled as 'if we don't see it, then it doesn't exist', and not addressed. We met on December 16th with the TOV STR Specialist to address concerns when owners convert storage rooms or closets into "bunk-rooms." There has been no response or repercussions. Homeowner Associations are limited and held to requirements established by declarations and rules and regulations when addressing STRs. It would make sense for the TOV to institute restrictions and enforcement that would benefit the community, and everyone held to this standard. This would ensure neighborhoods consisting of families, working people, and part-time owners AND limited STRs. Neighborhoods have become purely businesses based on certain types of ownership of STRs. Respectfully yours, Jan Myrick, President Board of Directors and Vail Point Townhome Association June 7, 2022 - Page 176 of 177 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: Adjournment 7:20 pm (estimate) June 7, 2022 - Page 177 of 177