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HomeMy WebLinkAbout2022-12-06 Agenda and Supporting Documenation Town Council Afternoon Meeting and Agenda1.Presentation/Discussion 1.1 2023 Winter Concert Updates 20 min. Listen to presentation and provide feedback. Presenter(s): Mia Vlaar, Economic Development Director and Jeremy Gross, Special Event Coordinator Background: A presentation of the RFP process and vendor selection for the Vail Après Monthly Concert Series and the April Concert. 1.2 Destination Stewardship Plan Review Part 1 and 2 90 min. Listen to presentation and provide feedback. Presenter(s): Mia Vlaar, Economic Development Director Background: Presentation of pillars 1 and 2 of the Destination Stewardship Plan 1.3 Residences at Main Vail Operations Policy 45 min. Listen to presentation and provide feedback. Presenter(s): Kathleen Halloran, Deputy Town Manager, George Ruther, Housing Director and Greg Hall, Public Works and Transportation Director Background: The Town of Vail is constructing a 100% deed- restricted, for-rent, residential development on Lot 3, Middle Creek Subdivision with occupancy by August 1, 2023. The Town’s sole objective of the 72-unit Residences of Main Vail Project is to advance, in part, the Town’s adopted housing goal of acquiring 1,000 additional deed restrictions by the year 2027. VAIL TOWN COUNCIL MEETING Afternoon Session Agenda Town Council Chambers and Virtually via Zoom Zoom Meeting ID: https://us02web.zoom.us/webinar/register/WN_gIcLsUm_Q32eAkcZ9k_jBg 12:50 PM December 6, 2022 Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Council will consider an item. April 2023 Concert and Vail Apres Monthly Concert Recommendation.pdf Council Memo - Monthly Village Concert Proposal Review and Recommendation.pdf Council Memo - April Concert Proposal Review and Recommendation v2.pdf Steward Vail - Strategic Pillars 1 and 2.pdf Council Memo - Steward Vail Review of Pillars.pdf Steward Vail Pillars 1 and 2 - Draft For Council Discussion.pdf 2022 Vail Sustainability Image Research Report.pdf RMV Policy memo.pdf 1 2.Information Update 2.1 Community Lottery Information 2.2 E-Bike Share Info Update 2.3 CSE Meeting Minutes 11/02/2022 2.4 November Revenue Update 3.DRB / PEC (5 min.) 3.1 DRB/PEC Update 4.Matters from Mayor, Council and Committee Reports (10 min.) 5.Executive Session (40 min.) 1) C.R.S. §24-6-402(4)(a) to consider the purchase, acquisition, lease, transfer or sale of any real, personal or other property interest, and C.R.S. §24-6-402(4)(e) to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations and instruct negotiators on the topic of a potential real property acquisition by the Town; and 2) C.R.S. §24-6-402(4)(a) to consider the purchase, acquisition, lease, transfer or sale of any real, personal or other property interest, C.R.S. §24-6-402(4)(b) to hold a conference with the Town Attorney, to receive legal advice on specific legal questions and C.R.S. §24-6-402(4)(e) to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations and instruct negotiators on the topic of the redevelopment of the Timber Ridge deed restricted housing project; and 3)C.R.S. §24-6-402(4)(b) to hold a conference with the Town Attorney, to receive legal advice on specific legal questions on the topic of appeal procedure. 6.Recess (4:20 estimate) FLYER_Vail Heights 10 11252022 (3).pdf E-Bike Share Info Update Memo 120622.pdf commission-of-special-events_minutes_summary__7_.pdf 221206_Revenue_Updates.pdf DRB Results 11-16.pdf PEC Results 11-14.pdf Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vailgov.com. All town council meetings will be streamed live by High Five Access Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five Access Media website the week following meeting day, www.highfivemedia.org. Please call 970-479-2136 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. 2 AGENDA ITEM NO. 1.1 Item Cover Page DATE:December 6, 2022 TIME:20 min. SUBMITTED BY:Jeremy Gross, Economic Development ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:2023 Winter Concert Updates SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Mia Vlaar, Economic Development Director and Jeremy Gross, Special Event Coordinator VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: April 2023 Concert and Vail Apres Monthly Concert Recommendation.pdf Council Memo - Monthly Village Concert Proposal Review and Recommendation.pdf Council Memo - April Concert Proposal Review and Recommendation v2.pdf 3 2023 APRIL CONCERT SERIES VENDOR RECOMMENDATION DECEMBER 6, 2022 4 Background •The Town of Vail and Vail Resorts collaboratively published an RFP for concerts in April 2023. •Each party is contributing $125,000 towards the concerts for a total of $250,000. •The goals of the concerts include: –Celebrate the end of Vail's 60th anniversary season with a world-class musical offering –Target a 25-40 year old affluent demographic to drive visitation in April –Continue to elevate Vail’s brand as a top live music destination in the Rocky Mountains –Provide an elevated guest experience Four proposals were received and reviewed by the Town and Vail Resorts.5 Recommendation −Staff and Vail Resorts have reviewed the proposal through the lenses of operations and safety, and ability to execute on the goals of the RFP. −Test concept by supporting Vail Valley Foundations 1st ever winter concert experience at the Amp in partnership with AEG Presents −The operational excellence of the Vail Valley Foundation combined with the music industry strength of AEG provides confidence in potential for this first time event. −VVF and AEG have the marketing prowess to ensure that the event is effectively marketed and promoted. −Recommendation is strengthened by VVF’s history with hosting events in townand on the mountain, along with additional elements included in the proposal. 6 Action Requested of Council −Authorize the Town Manager to enter into an agreement, on a form approved by the town attorney, with the Vail Valley Foundation to produce the 2023 April Concert Series, in an amount not to exceed $250,000. 7 Questions Thank you! 8 2023 VAIL APRÈS MONTHLY CONCERT SERIES VENDOR RECOMMENDATION DECEMBER 6, 2022 9 Background •The Town of Vail published an RFP for a monthly concert series running from January through April 2023. •Three proposals were received and reviewed. •The 2023 budget includes $150,000 to produce of this event series. •The goals of the concert include: –Creating a fun, vibrant and inclusive atmosphere through live music. –Promoting visitation mid week from a local and regional audience. –Expanding the programming offerings of the Town of Vail to make the resort an attractive destination on and off the hill. –Provide an elevated guest experience 10 Recommendation −The three proposals have been reviewed and evaluated through the lenses of operations and safety, and ability to execute on the goals of the RFP −The proposal that is recommended is from Golden Peak Productions. −Golden Peak Productions was selected as the vendor for the Early Season Concerts and 60th Anniversary parties and, while not complete, has produced the first set of concerts successfully. −The atmosphere created during the first weekend of concerts, including the locals kickoff party was very positively received by the community. −The review team felt that there was a strong value in the consistency of keeping the same event producer from the November and December concerts through the rest of the ski season. 11 Action Requested of Council −Authorize the Town Manager to enter into an agreement, on a form approved by the town attorney, with Golden Peak Productions to produce the 2023 VailAprès Monthly Village Concerts Series, in an amount not to exceed $150,000. 12 Questions Thank you! 13 To: Vail Town Council From: Economic Development Department Date: 12/6/2022 Subject: Vail Après Monthly Village Concert Series: Proposals and Vendor Recommendation PURPOSE The purpose of this memo is to make a recommendation for a vendor to produce the Vail Après Monthly Village Concert Series in response to the RFP published by the town. BACKGROUND In October 2022, the winter events plan was reviewed with the CSE and presented to Town Council. One of the supported plan elements was the monthly village concert experience as part of our Vail Après programming. An RFP was published to source an event producer to present the series. The request identified four dates, one per month from January through April, for concerts to be held in Vail Village. The series will occur on the 3rd Thursday of the month to create a predictable cadence for community awareness and for guests to plan their visitation. The location of the concerts will be reviewed by the Event Review Committee but will either be the International Bridge or Solaris. The Vail Après Monthly Village Concert Series is budgeted at $150,000 or $37,500 per concert and is included in the 2023 Budget. Three proposals were received in response to the RFP: Kaleidoscope Productions, a collaboration between Resort Entertainment Group and Shakedown Presents, and Golden Peak Productions all provided proposals. The proposals were reviewed internally by the safety and operations team, economic development department and the town manager’s office. The review included an evaluation of the event's ability to achieve the goals of the town and to host a concert series that would be popular amongst both locals and guests and meet expectations for both tangible and intangible benefit to the town. Staff evaluated the operational impacts of the event and performed an analysis using the Event Scorecard. Following the scorecard completion and discussions and review of the proposals, staff is recommending the town contract Golden Peak Productions (GPP) for the Vail Après Monthly Village Concert Series. Golden Peak Productions is currently producing the Early Winter Concert Series which included the recently hosted Thanksgiving weekend concerts. The concerts were met 14 Town of Vail Page 2 with great enthusiasm by the community including the locals’ season kickoff party. The town has confidence in GPP as the best vendor to produce the 2023 Vail Après Monthly Village Concert Series. ACTION REQUESTED OF COUNCIL Authorize the Town Manager to enter into an agreement, on a form approved by the town attorney, with Golden Peak Productions to produce the 2023 Vail Après Monthly Village Concerts Series, in an amount not to exceed $150,000. 15 To: Vail Town Council From: Economic Development Department Date: 12/6/2022 Subject: 2023 April Concert Series PURPOSE The purpose of this memo is to make a recommendation for a vendor to produce the 2023 April Concert Series. An RFP to produce the event was published October 31, 2022. The RFP represented a shift in direction with spring event activation in Vail. Given current occupancy and visitation trends for the winter season, the town and Vail Mountain have realigned the event strategy against goals to deliver an enhanced guest experience through the late winter season. Four proposals were received, reviewed, and vetted by town department representatives and Vail Mountain staff. BACKGROUND Town Council provided direction to return to a larger scale live music event in the final weeks of the 2022/2023 winter season. The town and Vail Mountain collaboratively published an RFP to identify a vendor to produce the event. Vail Mountain and the town are each contributing $125,000, for a total of $250,000 to support the April Concert Series. Four proposals were received in response to the RFP: The For Site Group, Golden Peak Productions, Powabunga, and the Vail Valley Foundation (VVF) all submitted proposals. The proposals were reviewed internally by the safety and operations team, economic development department and town manager’s office, and externally with Vail Mountain. The review included an evaluation of the event producer’s ability to achieve the goals of the town and Vail Mountain. This includes hosting a concert targeting young adult- globally minded guests while appealing to our employees, and community, addressing operational impacts, and providing tangible and intangible value to the town and Vail Mountain as sponsors of the event. An evaluation of the event was performed using the town’s Event Sponsorship Scorecard. Through the discussions and review of the proposals, staff and Vail Mountain are recommending that the proposal from the Vail Valley Foundation be selected. The Vail Valley Foundation’s proposal is to host two nights of concerts at the Gerald R. Ford Amphitheater on April 7 and 8, 2023. The proposal was presented by the VVF in partnership with Anschutz Entertainment Group (AEG). The synergy of operational excellence of the VVF with the music industry strength of AEG presents a great 16 Town of Vail Page 2 opportunity for the town and Vail Mountain, who are aligned that the VVF is the best choice to successfully execute the concert series in a new (but familiar) winter venue. The VVF and AEG have the expertise and resourcing to ensure that the event is effectively marketed and promoted. The VVF’s history working with both town and mountain provide confidence in the execution of the additional elements as part of the concert weekend to incorporate village and mountain areas. Additional operational considerations were evaluated in the review of the proposals. With the implementation of the new parking system and not using the parking lot as the venue for the concert, we now have ability to use the Ford Park Parking lot for both regular daytime employee parking and paid concert parking. While the AMP has not been used for a winter concert like this before, the VVF team’s operations plan will ensure that the venue is safe and effective for the April Concert Series. ACTION REQUESTED OF COUNCIL Authorize the town manager to enter into an agreement, on a form approved by the town attorney, with the Vail Valley Foundation to produce the April Concert Series, in an amount not to exceed $250,000. 17 AGENDA ITEM NO. 1.2 Item Cover Page DATE:December 6, 2022 TIME:90 min. SUBMITTED BY:Stephanie Bibbens, Economic Development ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:Destination Stewardship Plan Review Part 1 and 2 SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Mia Vlaar, Economic Development Director VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Steward Vail - Strategic Pillars 1 and 2.pdf Council Memo - Steward Vail Review of Pillars.pdf Steward Vail Pillars 1 and 2 - Draft For Council Discussion.pdf 2022 Vail Sustainability Image Research Report.pdf 18 The Steward Vail PlanStrategic Pillars 1 & 2 December 6, 2022 19 What the Steward Vail Plan Is –and Isn’t 20 The Steward Vail Plan •It’s a Destination Stewardship Plan, not a Master Plan. •It centers on how the tourism economy connects with the life of the Vail community and the natural environment –and how to create thriving conditions for all. •All recommended actions are intended to be achieved within 10 years. •It sets the stage for a visioning plan but is not intended to be the long term visioning plan. •The process has engaged 1,500+ people in public sessions, other public meetings, surveys, 12 focus groups, and more than 30 in-depth interviews. 21 Steps to completion •Three Council sessions to review plan elements. •Dec. 6: Strategic Pillars 1 & 2 (Regional collaboration, World -Class Experience) •Dec. 20: Strategic Pillars 3 & 4 (Community, Environment) •J an. 3: Strategic Pillar 5 (Marketing), Sustainability Analysis, Optimal Value Framework. •Jan. 9: Presentation of Draft Plan at Planning and Environmental Commission & Vail Local Housing Authority Joint Meeting •Feb. 7: First Council Review of Draft Plan •Feb. 20: Second Council Review of Draft Plan 22 The Planning Framework 23 Invigorate Vail’s Spirit. Enhance Vail’s ‘World- Class Experience.’ Be Better Together. Advance Vail Stewardship as a Global Model. Energize Vail's Brand as the Premier Sustainable Mountain Resort. THE STEWARD VAIL VISION The premier sustainable mountain resort community generating economic vitality to deliver a high quality of life, inspiring experiences, and stewardship of climate, land, water, and wildlife. ObjectivesObjectivesObjectivesObjectivesObjectives TOWN COUNCIL PRIORITIES Economy Experience Community Environment STRATEGIC PILLARS Action Steps Action Plan/Tactics Action Plan/TacticsAction Plan/Tactics Action Plan/Tactics 24 Plan Components •SMARI BRAND PERCEPTION AND CONSUMER SEGMENTATION SURVEY –Insights on opportunities to build competitive advantage and leverage major attributes. (included in packet) •KEY INSIGHTS –Major findings from engagement and research are incorporated in the draft pillars/objectives. FORTHCOMING •VAIL SUSTAINABILITY ANALYSIS –Review of Vail’s work to be a sustainable destination, with recommendations for future efforts. •THE OPTIMAL VALUE FRAMEWORK –A tool for setting and monitoring KPIs to maintain a desired balance of community priorities. IMPLEMENTATION PLAN –An action plan to fulfill the plan’s goals. 25 Sample Implementation Plan 26 Be Better Together. Strategic Pillar # 1 27 Key Objectives 1.LEGACY OBJ ECTIVE:Double the supply of deed-restricted housing --from 1,050 to 2,100 -- for Vail residents and workers by 2032 through a regenerative, collaborative approach. 2.Join forces to create an integrated network of transit services connecting the Vail community with major hubs and the rest of Eagle County as well as Lake, Summit, and Garfield counties. 3.Collaborate on a wide -ranging childcare strategy to support the needs of families in Vail’s workforce. 4.Leverage partnerships across Eagle County to expand the positive impacts of Vail’s climate initiatives. 5.Join in partnerships to stimulate local entrepreneurship as a way of creating more career pathways in Vail. 6.Continue to build and strengthen partnership with Vail Resorts to identify solutions for achieving shared objectives. Be Better Together. Embrace local and regional collaboration and public -private partnerships to solve community challenges and capitalize on opportunities . 28 1.LEGACY OBJ ECTIVE:Double the supply of deed-restricted housing for Vail residents and workers by 2032 –from 1,050 to 2,100 --through a regenerative, collaborative approach. •The top priority by far is closing the housing gap, especially in Vail. •Big one -time opportunity with $528 million in Colorado’s federal relief funding for housing; 8 to 10 projects under consideration. •Existing culture of business community taking responsibility for finding, supporting or providing housing. •Long-term opportunity is building housing to generate more housing. •Plow proceeds back into new development, more deed restrictions. •Deed restrictions have value too: $65 million to $70 million. •Formalizing relationship with county partners could position entire region more effectively for future state and federal grant funding. 29 2. Join forces to create an integrated network of transit services connecting the Vail community with major hubs and the rest of Eagle County. •Vail will lead countywide planning efforts. •Vail also will be managing a ramp-up of two CDOT initiatives to reduce I-70 congestion –Pegasus and Bustang. •A major challenge will be how to expand the Vail Transportation Center’s mobility hub to accommodate all new transit options. This will be addressed in updates to Vail’s Mobility and Transportation Plan. •As one of 7 voices on the Eagle County Regional Transportation Authority Board, will be important for Vail to advocate for integrated solutions that support town goals. •Countywide transit expands housing potential. It will be important to foster integrated solutions. 30 3.Collaborate on a wide -ranging childcare strategy to support the needs of Vail’s working families . •Critical shortage of childcare, especially relating to infant care. Without tuition assistance, cost of childcare is beyond the means of many families. •Seen as a factor that pressures families, and results in a loss of young families from Vail. •Council significantly increased funding this year, but various obstacles have kept some initiatives from full implementation. •Vail Valley Foundation announced creation of Eagle River Childcare, an employer-sponsored model for 168 children. •Possible solutions: New construction or expanded partnerships to support childcare needs. A focused study to identify needs and ways to meet them. 31 4. Leverage partnerships across Eagle County to expand the positive impacts of Vail’s climate initiatives. •Use the Eagle County Climate Action Collaborative as a framework for collective action. •Create an agenda for shared climate action strategies. •Can position Vail more effectively for federal and state grants. •INITIAL FOCUS: Consider possibilities for taking current Vail initiatives –e -bike share, e -vehicle charging stations, climate action policies –countywide. 32 5. Join in partnerships to stimulate local entrepreneurship as a way of diversifying Vail’s economy and creating career pathways. •Opportunities to open new businesses are seen as unlimited, but costs and obstacles make new ventures difficult and risky for small businesses. •By supporting an environment that nurtures new business owners, Vail can help provide career paths for those who want to build lives in Vail. •POSSIBILITIES: •Reduce business risk by making permitting requirements easier to negotiate. •Convene local business community in identifying issues holding back business development and develop plan to mitigate challenges. •Seek partnership with Northwest Small Business Development Center or Colorado Mountain College. 33 6. Continue to build and strengthen partnership with Vail Resorts to identify solutions for achieving shared objectives. •The Town and Vail Mountain should identify areas of alignment as both organizations have far more to gain than lose by seeking a shared agenda over the next 10 years, particularly in these areas: •Fostering extraordinary experiences in Vail •Integrated marketing to target desirable travelers •Hospitality training •Supporting workers with housing, childcare, and transit •Reducing carbon emissions •To identify best practices and solutions, the Town of Vail should consider discussions with other major Vail Resorts host destinations to shape a more productive relationship. 34 Enhance Vail’s ‘Wo rld -Class Experience.’ Strategic Pillar # 2 35 Enhance Vail's 'World -Class Experience.' Foster memorable experiences and positive interactions to serve all in Vail. Key Objectives 1.Embrace technology to deliver seamless experiences, manage resources such as parking and trails, and create strategies to increase visitor spending. 2.Continuously build Vail’s image as a community that offers first -class service and accepts everyone for who they are. 3.Leverage the local arts and creative economy to create exceptional year-round cultural experiences and diversify business development. 4.Expand the appeal of Vail’s healthy outdoor lifestyle by advancing opportunities for physical and emotional wellness, especially in partnership with renowned healthcare providers in Vail. 5.Broaden access to the world-class experience to attract and reward workforce and local stewards. 36 1.Embrace technology to deliver seamless experiences, manage resources such as parking and trails, and create strategies to increase visitor spending. •Over the next 10 years, the future lies in seamless travel. •Technologies are emerging to manage visitor flows, deliver insights into consumer preferences, mitigate travel hassles, and eliminate rote aspects of many jobs. •As the most -connected resort in North America, Vail is well- positioned to lead the way in innovating and deploying hospitality-focused technology. •Convene a seamless travel group to consider how technology could connect Vail visitors from desirable experiences from arrival to departure, increasing satisfaction and spending. •Even bigger opportunities lie in developing integrated solutions to manage everything from transit, access to trails, parking and more. 37 2. Continuously build Vail’s image as a community that offers first -class service and accepts everyone for who they are. •One of highest points of agreement in last summer’s resident survey: Maintaining a high level of customer service is ‘extremely important’ •Some operators are concerned that growing workforce pressures threaten Vail’s brand. Last winter’s trip survey showed 16 percent of visitors said service had declined. •Those who visit Vail rate its hospitality much higher than those who haven’t. There’s a communication gap about this important attribute. •OPPORTUNITIES : Continuously improve Prima Vail. Refresh trainings for workers to share sensitivity to people with backgrounds different from their own. 38 3. Leverage the local arts and creative economy to create exceptional year-round cultural experiences and diversify business development. •Creative economies have year-round appeal. Other mountain resort destinations are building out this aspect of their economies to fill shoulder seasons and create resilience against shorter winters. •Though Vail has an exceptional cultural scene, U.S. visitors have low awareness of Vail as a cultural destination. •Discussion already is under way about creating a cultural or community center with new indoor cultural venues. •ACTION STEP: Conduct a feasibility study to assess the potential for new indoor cultural venues. 39 4. Expand the appeal of Vail’s healthy outdoor lifestyle by advancing opportunities for physical and emotional wellness, especially in partnership with renowned healthcare providers in Vail. •With interest in wellness and self-care on a steep climb globally, wellness tourism is projected to grow by 20.9% a year through 2025. •With its health y outdoor lifestyle, renowned medical providers, and abundance of operators already offering luxurious spa treatments and wellness activities, Vail is well-positioned. •Finding ways to expand wellness offerings, especially through partnership with local providers like Vail Health, could hold strong benefits for the community as well. 40 5. Broaden access to the world-class experience to attract and reward workforce and local stewards. •Resident sentiment surveys across the U.S. make it clear: Locals grow disenchanted with tourism when they feel left out of the tourism economy. •To address this –and attract and retain workers –it is key to take active steps to ensure that the community experiences the benefits of tourism. •One example: Crested Butte sets aside a week each year for Vinotuk, just for locals. •Prima Vail is a readymade opportunity to connect workers who complete trainings with opportunities to enjoy the town they serve. Another possibility is to create rewards for ‘Vail Stewards’ who complete a series of actions to care for Vail. •The key is to include the local community in the world-class experience. 41 Thank you Questions? 42 To: Mayor and Town Council From: Economic Development Department Date: December 6, 2022 Subject: Steward Vail Destination Stewardship Plan - Review of Pillars I. Background Early in 2022, the town embarked on an innovative path to guide how it manages an economy founded 60 years ago almost entirely on tourism. With town revenues continuing to achieve new highs following the depths of pandemic containment, the town is re-examining how tourism can generate additional value to the community. As a result, Vail now is among the first places in the United States. to frame tourism planning around a destination stewardship approach. Vail's choice signals a forward-thinking commitment to a holistic planning approach that engages the entire community in addressing challenges and finding new opportunities for their globally known and treasured destination. Vail is seeking a best-in-class strategy, guided by principles of sustainability, to create a shared vision for a thriving tourism economy that supports quality of life and quality of experience for all those who care about Vail. The stated purpose for this work, which has been shared widely within the community, is as follows: II. Purpose of the Plan • Managing the growth of Vail’s tourism economy, • Protecting Vail’s way of life and the natural environment that is beloved by the community • Maintaining a world-class experience for our visitors and residents Another desired outcome for Vail is to fulfill one of its last requirements for achieving certification to the Mountain IDEAL standard. This standard, recognized by the Global Sustainable Tourism Council, requires approval for a destination management plan within the five-year certification cycle. By making substantial progress toward this goal, Vail will remain on track for achieving this certification. Upon Council approval of the Steward Vail Plan, Vail will become just the second destination in the world to achieve the standard. 43 Town of Vail Page 2 The town engaged a first-time partnership among three leading tourism organizations -- MMGY NextFactor, Better Destinations, and the Travel Foundation to develop the plan. Collectively and individually, these partners are focused on reshaping tourism to meet global challenges. Their aim is to re-frame the definition of tourism success to generate new community benefits through regenerative tourism strategies and methodically identify tourism impacts and ways of mitigating them. Unlike a town master plan, this Destination Stewardship Plan centers on how Vail's tourism economy connects with the life of the Vail community and the natural environment. It focuses on ways to position the town's key economic driver even more effectively for success over the next 10 years and how it can support even more benefits for the Vail community and the natural environment. All recommended actions are intended to be achieved within 10 years. III. Public Engagement and Components of the Steward Vail Plan A. Public Engagement To ensure that the voices of Vail and other Eagle County residents were heard and honored, the process incorporated an extensive collection of tactics for gaining community input and insights. • A total of 986 Vail residents took part in a resident sentiment survey fielded from late May to early August 2022. A large majority (72 percent) identified as year-round residents, while the remainder was seasonal. • Another 131 Eagle County residents filled out the same survey between mid- July and early August. This version was made available at the request of down valley residents who wished to be heard as well. (Findings attached as Appendix B.) • Most of the 1,465 respondents who participated in the Town's semiannual Community Survey weighed in on three tourism-related questions (which TOV allowed the consulting team to share). • About 250 Vail and other Eagle County residents took part in three sets of public engagement sessions -- a total of six in-person and two virtual sessions. • About 180 Vail and other Eagle County residents were invited to join in 12 focus groups centering on a wide range of tourism-related topics. These included a focus group seeking perspectives of Vail's Spanish-speaking residents and workers. • About 30 Vail and other Eagle County residents participated in in-depth, 1:1 interviews. These included current elected officials, past mayors, and long- time residents as well as representatives of leading community nonprofits and the town's Sustainable Destination MOU Partners. • Throughout the process, Vail and other Eagle County residents were invited to visit an information hub, EngageVail.com/Stewardship, to register for public engagement events and stay abreast of findings. 44 Town of Vail Page 3 B. Brand Perception and Consumer Segmentation Study The Vail Local Marketing District Advisory Council commissioned a national study from Strategic Marketing & Research Insights (SMARInsights). The survey was designed to deliver insight into Vail's competitive position and whether or how sustainability fits with Vail's image and appeal. C. Sustainability Analysis A key deliverable for the planning process was for the Travel Foundation to document, review and analyze Vail’s existing sustainable tourism and destination management initiatives against current global trends. This analysis assessed Vail’s progress in addressing Global Sustainable Tourism Council (GSTC) criteria and the Mountain IDEAL standard, while diving deeper into such areas as impact management, optimizing tourism’s value, and climate action. The analysis covered 24 impact areas, including economic, environment, societal, cultural, tourism product, and governance. It identified 10 high-priority areas for attention, mostly relating to environmental and economic issues, and another nine medium- priority areas. Five areas were deemed low-priority. D. Optimal Value Framework. Another key deliverable for the planning process is the Optimal Value Framework (OVF), is a strategic approach developed by The Travel Foundation that can be used in guiding destination stakeholders to optimize the value of tourism for their community, agree on balanced measures of success, and prioritize the impact areas most important for them to manage carefully and resource sufficiently. E. Steward Vail Planning Framework. Findings from research and stakeholder engagement were shared in a one-day visioning session in August attended by about 25 community leaders, including Mayor Kim Langmaid. All shared insight into five proposed Strategic Pillars and a lineup of potential plan objectives. These have been shared for discussion with a large variety of groups, including Vail's six Sustainable Destination MOU Partners, the Planning and Environmental Commission, the Vail Economic Advisory Council, the Sustainable Destination Council, the Vail Local Marketing District Advisory Council, and in public validation sessions in October. The feedback has been collected meticulously and incorporated into the version that now is being shared with Council for review over three upcoming Council meetings: December 6 and December 20, 2022 and January 3, 2023. The Planning Framework is designed to align with the four town council priorities. An overarching vision is supported by five Strategic Pillars, as follows: Four Town Council Priorities Economy Experience Community Environment What the Town of Vail's regenerative tourism economy will achieve for all in Vail: 45 Town of Vail Page 4 The Steward Vail Vision The premier sustainable mountain resort community creating economic vitality to deliver a high quality of life, inspiring experiences, and stewardship of climate, land, water, and wildlife. Five Strategic Pillars Be Better Together. Embrace local and regional collaboration and public-private partnerships to solve community challenges and capitalize on opportunities. Key Objectives 1. LEGACY OBJECTIVE: Double the supply of deed-restricted housing – from 1,050 to 2,100 – for Vail residents and workers by 2032 through a regenerative, collaborative approach. 2. Join forces to create an integrated network of transit services connecting the Vail community with major hubs and the rest of Eagle County. 3. Collaborate on a wide-ranging childcare strategy to support the needs of Vail’s working families. 4. Leverage partnerships across Eagle County to expand the positive impacts of Vail’s climate initiatives. 5. Join in partnerships to stimulate local entrepreneurship as a way of diversifying Vail’s economy and creating career pathways. 6. Continue to build and strengthen partnership with Vail Resorts to identify solutions for achieving shared objectives. Enhance Vail's 'World-Class Experience' Foster memorable experiences and positive interactions to serve all in Vail. Key Objectives 1. Embrace technology to deliver seamless experiences, manage resources such as parking and trails, and create strategies to increase visitor spending. 2. Continuously build Vail’s image as a community that offers first-class service and accepts everyone for who they are. 3. Leverage the local arts and creative economy to create exceptional year-round cultural experiences and diversify business development. 4. Expand the appeal of Vail’s healthy outdoor lifestyle by advancing opportunities for physical and emotional wellness, especially in partnership with renowned healthcare providers in Vail. 5. Broaden access to the world-class experience to attract and reward workforce and local stewards. 46 Town of Vail Page 5 Invigorate Vail's Spirit Tap into Vail's creativity and innovation to foster a stronger sense of community. Key Objectives: 1. LEGACY OBJECTIVE: Develop a multi-purpose community, civic and cultural center to enliven the Vail lifestyle and foster local connections. 2. Create a marketplace/food hall to spark and support creation of more locally owned food and retail businesses. 3. Develop a fitness center as a community amenity and gathering place. 4. Engage the community in ways to enhance Vail’s cultural heritage, architecture, green space, and overall sense of place. 5. Facilitate community connection to town activities and decision making. Advance Vail Stewardship as a Global Model. Show and uphold Vail's commitment to environmental stewardship, lead local community action, and be an inspirational example for others worldwide. Key Objectives: 1. LEGACY OBJECTIVE: Embrace clean-energy innovation and partnerships to operate a carbon-free snow-melt system in the cores of Vail Village and Lionshead Village. 2. Galvanize collaborative climate action in the tourism sector through leading by example, educational initiatives, embracing local partnerships and striving to maintain global sustainability certifications o Strive to maintain Mountain IDEAL certification. o Monitor compliance with the Optimal Value Framework’s KPIs at least annually and, if needed, take action to restore balance with agreed goals. 3. Build Vail's resiliency against emergency interruption of power with a clean- energy backup system. 4. Establish quality of the Gore Creek watershed as a key measure of success for environmental stewardship. 5. Dedicate human and financial resources to address high- and medium-risk impacts identified in the Vail Sustainability Analysis. Energize Vail's Brand as the Premier Sustainable Mountain Resort Community. Align Vail marketing and messaging to reflect shared community values and amplify the town's standing as a sustainable destination. Key Objectives: 1. LEGACY OBJECTIVE: Create an iconic thought leadership event to advance mountain tourism sustainability and create solutions. 2. Differentiate Vail as a welcoming destination offering a sustainable, luxurious mountain resort experience. 47 Town of Vail Page 6 o Build awareness town wide for Vail’s deep commitment to destination stewardship, now part of the community’s global identity. o Develop a niche marketing strategy to attract high-end travelers seeking low-carbon travel experiences. 3. Celebrate innovative local business owners and residents to humanize Vail's most extraordinary qualities. 4. In collaboration with local partners, create stewardship messaging to share Vail’s community values and invite others to be a part of it. 5. Build on Vail's history of embracing diverse communities by reaching out to welcome travelers from around the world. Each of the five Strategic Pillars is supported by five to six objectives, which provide tangible ways for the Town to act on the intentions expressed by the Strategic Pillars. These Pillars and Objectives -- and how they relate to Council policy -- will be the primary topic for discussion in the upcoming Council meetings on the Steward Vail Plan. IV. Next Steps As months of work now come together in the construction of the Steward Vail Plan and its implementation plan, the Council is reserving time on its agenda from December 6 through February 21 for a thorough consideration of the plan and its objectives. The schedule is as follows. • Dec. 6: Strategic Pillars 1 & 2 • Dec. 20: Strategic Pillars 3 & 4 • Jan. 3: Strategic Pillar 5, Sustainability Analysis, Optimal Value Framework. • Jan. 9: Presentation of Draft Plan at PEC & VLHA joint meeting • Feb. 2: Final Draft Plan with all components shared in Council Packet • Feb. 7: First Council Review of Draft Plan • Feb. 20: Second Council Review of Draft Plan V. Action Requested of Council Provide feedback and input on policy implications of the Steward Vail Plan. 48 This Vision Is Inspired by Town Council Priorities and Rests on Five Strategic Pillars. Four Town Council Priorities Economy Experience Community Environment What the Town of Vail's regenerative tourism economy will achieve for all in Vail: The Steward Vail Vision The premier sustainable mountain resort community creating economic vitality to deliver a high quality of life, inspiring experiences, and improvements for climate, land, water, and wildlife. Five Strategic Pillars Be Better Together. Embrace local and regional collaboration and public-private partnerships to solve community challenges and capitalize on opportunities . Enhance Vail's 'World -Class Experience' Foster memorable experiences and positive interactions to serve all in Vail. Invigorate Vail's Spirit Tap into Vail's creativity and innovation to foster a stronger sense of community. Advance Vail Stewardship as a Global Model. Show and uphold Vail's commitment to environmental stewardship, lead local community action, and be an inspirational example for others worldwide. Energize Vail's Brand as the Premier Sustainable Mountain Resort Community. Align Vail marketing and messaging to reflect shared community values and amplify the town's standing as a sustainable destination. 49 Be Better Together. Embrace local and regional collaboration and public-private partnerships to solve community challenges and capitalize on opportunities . The Vail community extends well beyond the 5,000 or so people who live full-time within its 4.72 square miles. It encompasses many more thousands of seasonal homeowners, as well as workers and business owners who live elsewhere and even many of the 2.5 million visitors who come calling every year. By a definition that many embrace, the Vail community includes anyone and everyone who cares about Vail. To address Vail’s biggest challenges and make the most of its many opportunities, it is vital to recognize this welcoming definition of the Vail community and find ways to advance shared goals for an ever-better Vail. Potential abounds for this to happen. One of the most compelling findings from this planning process is just how much community members agree about what needs to happen to make Vail a more livable community. The top priority by far is to address a housing crisis that threatens every aspect of life in Vail and surrounding communities, especially the availability of workforce to support the local economy. As shown by a pair of Steward Vail resident surveys fielded in summer 2022, both Vail and downvalley residents united in concerns about parking pressures, crowding, damage to trails, and a yearning for a stronger sense of community in Vail. They believe it's vital for Vail to support its workforce, not only with expanded housing opportunities, but with childcare and better transit options. They believe it's extremely important for Vail to strive to offer a high level of customer service and that greater cooperation between Vail Resorts and the Town of Vail would go a long way toward alleviating tourism -related pressures. These shared priorities point to real possibilities for the Town of Vail to join with other major players -- whether businesses, nonprofits, or other units of government -- in creating game -changing solutions for the town's most pressing needs. A collaborative approach also stands to generate benefits for Vail's broader community. Vail's Top Priority: Closing the Housing Gap. It is clear that the work of creating a more livable Vail must begin by creating more housing in Vail as quickly as possible. Then, to accommodate the twin realities of scarce buildable land and a critical need for workers who don't or can't live in Vail, the town also must move swiftly to create housing opportunity elsewhere in the valley. Vail already has a proven structure for moving this work forward -- an established partnership between the Town of Vail and the Vail Local Housing Authority (VLHA), known as Vail Home Partners. Another bonus is that many in the Vail business community already embrace a culture of taking responsibility for finding, supporting, or providing housing for their employees. Vail is lauded nationally for innovating the Vail InDEED program in 2017. Honored by the Urban Land Institute, this program has allowed Vail to buy deed restrictions on 1,050 homes, including rentals. The deed restrictions allow these homes and apartments to be 50 offered at more affordable prices or rents to anyone working at least 30 hours a week on average for an Eagle County business. While the town's 2022 Community Surve y found 14% of full-time Vail residents living in a deed -restricted home, Vail requires a more aggressive approach to address a housing gap estimated to be in the thousands. A one -time opportunity for Vail to create a regenerative, self-sustaining financing solution could lie within reach. In 2022, the Colorado General Assembly allocated $528 million of the state's $9 billion share of American Rescue Plan Act funding for housing. Funding opportunities range from state grants, revolving low-cost loans, affordable housing gap financing, and other innovative solutions. Efforts now underway to tap these funding mechanisms stand to double Vail's inventory of deed-restricted housing units. The VLHA already has identified eight to 10 housing developments for potential funding and is well- aware that its chances will improve by partnering with other entities. Build housing to generate more housing. A longer-term opportunity lies in taking an even more entrepreneurial approach to housing development. The key is to ensure that every new development creates returns that can be reinvested in more housing. Vail's Timber Ridge development, while offering some of the lowest rents in Eagle County, presently spins off a half million dollars in revenue annually. The Residences at Main Vail should show positive cash flow soon after opening in fall 2023. By ensuring that all future development of below-market rate properties is revenue -generating, Vail can build a growing pot of resources, not only to maintain and improve existin g inventory but to build more homes and buy more deed restrictions. With Vail taxpayers approving a new half-cent sales tax for housing in fall 2021, Vail's housing investment power is being enhanced by $5.3 million this year -- with the lion's share collected from Vail's visitors. On top of this, Vail Housing Director George Ruther notes that Vail could further enhance its housing finance toolkit by leveraging the paper value of its existing deed restrictions. Currently estimated at $65 million to $70 million, these financial instruments are essentially government -backed securities and valued commodities that could be traded to invest in more housing. Even if valued at 50 cents on the dollar, Ruther says, they could go a long way toward financing a $35 million project like the Residences at Main Vail. By aggregating all of these resources, Vail can amass a war chest for a focused assault on a crisis that represents the biggest threat by far to the ongoing prosperity and balance of its community. The populations of other desirable global destinations -- such as Venice and Bruges -- have plummeted in part because the cost of housing soared beyond the reach of too many people. Unlike many storied places, Vail has the financial means to reverse its own troubling population decline by creating more deed-restricted homes in Vail. It must rally the community support to build it. Possibilities exist to build smarter. Opportunities abound. Within Vail, redeveloping Timber Ridge as a taller, denser neighborhood could add hundreds of new homes. More could be added atop the Red 51 Sandstone parking structure, which was designed to accommodate additional development such as housing above its top deck. The West Middle Creek parcel – centrally located between the two Villages – has been identified as an ideal location for future housing. VLHA is in discussions involving acquisition of underutilized CDOT-owned land in Vail. The November 2022 approval of a half-cent sales tax to fund the new Eagle County Regional Transit Authority (ECRTA) includes funding to develop housing for transit workers. Vail has an obvious case for providing homes for employees in the county's transit hub. Each time development is contemplated in Vail, the potential for adding resident housing should be weighed and aggressively pursued when viable. Vail can sharpen the viability of its housing developments, while further reducing costs for residents, by including Holy Cross Energy as a partner. By engaging the innovative energy utility in early phases of design and development, Vail could incorporate pioneering clean- energy technologies into a model for sustainable housing development. This approach also would dovetail with the town and the utility's shared long-term climate goals. It will be important for the VLHA and Holy Cross to find ways of streamlining communications and decision -making to make this a viable, actionable partnership. With many workers and far more buildable land beyond Vail's western border, much could be accomplished through strong regional housing partnerships. One possibility is joining with the Eagle County Housing & Development Authority and the neighboring communities of Minturn, Avon, Eagle, and Gypsum to create shared formal oversight of an integrated countywide housing strategy. For Vail, a specific goal would be to create downvalley housing for Vail workers with integrated transit solutions. By working through the tough conversations and arriving at a set of shared policies and goals, a countywide entity -- perhaps known as Eagle County Home Partners -- could position the entire region more effectively to close the housing gap with collective action and a big picture approach. At a practical level, a closely coordinated countywide effort could better leverage potential for state and federal grant funding. Countywide transit expands housing potential. A new ECRTA focused on moving people up and down the Vail Valley will make countywide housing solutions even more viable. It will be critically important for Vail Home Partners -- and its county partners -- to integrate fast, frequent, convenient transit links into any new housing development. Regular transit via a new "free -fare zone” from Vail to Edwards can ease concerns about living west of Dowd Junction. Integrating housing and transit strategies not only will reduce parking pressures and help Vail meet carbon reduction goals but let the town steer housing investment into living spaces instead of parking structures. In updating the Vail Mobility and Transportation Plan throughout 2023, the Vail Public Works Department will be addressing many new possibilities posed by the ECRTA. It will be important to include the VLHA as the plan is created. Without question, Vail is the county's transit hub and, by agreement, will lead the ECRTA's regional transportation planning work. Vail's free in-town transportation services are a model of efficiency and convenience, accommodating about 2 million riders a year, a third 52 of whom are locals. The outlying routes accommodate another million riders annually. Expanded ECRTA service -- including another “free -fare zone" between Vail, Avon, and Beaver Creek -- will turn what has been mostly a wonderful Vail amenity into a transit system generating strong benefits for guests, workers, and resident s who want to recreate. It also holds big potential for easing pressures on Vail parking while supporting local commerce. Even without accommodating new Eagle County routes, Vail's Transportation Center will be handling a ramp-up of two Colorado Department of Transportation (CDOT) initiatives to reduce Interstate 70 vehicle traffic. Bustang motorcoach service carrying riders from Denver to Grand Junction is set to grow from about seven daily trips in 2023 to 12 in 2024. Vail also will be managing even more hourly service from Pegasus vans whisking up to 11 passengers at a time from Denver's Union Station to Idaho Springs, Frisco, Vail, and Avon. A key challenge for Vail will be how to expand the mobility hub at its Transportation Center to accommodate all of these new options. Vail taxpayers -- mostly Vail's millions of visitors -- will be contributing nearly 40 percent of the ECRTA's new revenues but hold just one seat on the seven-member board. While Vail has a grant to expand the Transportation Center by 2026, impending service expansions likely will require additional funding. This must be addressed as Vail updates its Mobility and Transportation Master Plan, advocates for its share of ECRTA funding, and seeks additional federal funding. The ECRTA is not intended to fund local service, such as Vail's existing routes. But the ECRTA's existence may relieve the Town of Vail of some transit costs. The new transit authority is structured to fund flight guarantees to expand service to the Eagle County Regional Airport. The authority also could fund "first mile/last mile" transit options like Vail's e -bike share program. Given lead times for ordering new buses, Vail likely will not be launching new routes until March 2024. To improve the chances of locals adopting transit, it will be critical for Vail to advocate for pricing that is well below the cost of a local parking pass. Moreover, it will be important for riders to feel confident about the tradeoffs between time spent taking transit compared with taking their own vehicle. Best practices suggest that riders should have confidence they'd spend no more than 50 percent more time taking a bus than if they'd driven themselves. The expectation should drop to 30 percent for express routes. Critical short age of childcare requires new approaches. A livable Vail also requires addressing a yawning gap in the availability of childcare services, especially for infant care. While the Town of Vail has been supporting childcare for local families and workers since the early 90s, it provided mainly in -kind services and covered capital expenses for a local center, until creating a subsidy for infant care in 2001. Based on concerns shared in the 2020 Community Survey, the town in 2022 upped its support to $250,000 for Vail's two full-time childcare centers. The budget covered retention for childcare workers, tuition assistance for families earning less than 450 percent of the poverty level, and $60,000 for maintaining and funding 8 infant care slots. A similar funding request is under consideration for 2023. 53 Though only eight of the two Vail centers' 98 licensed spots are allocated for infant care -- all at Vail Child Care Center -- efforts to expand this level of care have lagged. While the center's staffing could acc ommodate 10 babies, Vail Child Care does not have the required physical space for them. Vail's other center -- the Children's Garden of Learning -- was placed in temporary quarters atop the Lionshead Parking Garage to make way for construction of the Residences at Main Vail. It is not licensed to provide infant care. Efforts to expand the availability of in -home care are stalled, mainly due to needs related to licensing and supplies. As a result, many parents are stuck with average infant care wait times of 16 to 18 months, the age at which their babies typically would advance to toddler care. Providers say many parents cope by scheduling their work hours to cover for each other, a practice local experts say is straining families, some to the breaking point. With federal supports for childcare winding down, it will be vital for Vail to continue finding ways to make its community viable for working families. Young families are able to find childcare more readily downvalley, another factor drawing many to make their lives there rather than in Vail. Apart from availability, the cost of childcare -- about $15,000 a year for a preschooler -- is beyond reach for many working families. With federal guidelines saying childcare should cost no more than 10 percent of family income, a working family would need a $150,000 annual income to cover one child’s tuition. Communities like Breckenridge have made tuition assistance even more widely available, extending it to families making up to 500 percent of poverty level. The Town of Vail clearly has the will and means to address its workers' childcare needs, as has Eagle County and numerous employers. Though Vail Resorts provides childcare services in Avon, the program currently serves only a portion of the company's many thousands of employees. A leading nonprofit, the Vail Valley Foundation, in September announced creation of the Eagle River Child Care Initiative, supporting development of a new childcare center in Avon for up to 168 preschoolers. It's founded on an employer- sponsored childcare model, allowing local businesses to opt in and make meaningful contributions toward employees' childcare costs. The Town of Vail can find opportunity in partnering and collaborating to expand the impact of these efforts. In the short term, Vail can identify a stronger strategy for addressing childcare through a focused study to identify workers' needs and innovative ways of meeting them. Longer term, Vail must consider ways to expand childcare, whether through construction, such as wit h a new facility for the Children's Garden of Learning, or through expanded partnerships with Eagle County, local businesses, and the county's 150 nonprofits. Vail can lead locally to act globally. Vail earns global recognition for its progress in meeting the Mountain IDEAL requirements for certification as a sustainable destination, recognized by the Global Sustainable Tourism Council.” It can broaden the positive outcomes of these efforts by sharing its expertise locally and partnering with downvalley c ommunities that share its commitment to climate action. 54 The town's Sustainable Destination Council and Steering Committee already include many members representing organizations operating outside of town boundaries. By using the Eagle County Climate Action Collaborative as a framework, the Town of Vail can partner across Eagle County to create an agenda for shared climate action strategies. An initial focus should be considering possibilities for expanding current initiatives, such as electric-bike share, electric vehicle charging initiatives, and policies that advance climate action -- countywide. It is also recommended that Vail work with the collaborative to identify barriers to urgent actions — such as onerous approval processes – and seek relevant changes. By joining in collective action, this collaborative can improve its opportunities for state and federal grant funding and make more rapid progress toward setting and achieving shared goals and initiatives for more rapid carbon reduction. Entrepreneurship can open career paths. Vail entrepreneurs say opportunities to open new businesses are "unlimited." But, they say, costs of doing business along with other hurdles make launching a new business in Vail an extremely difficult and risky proposition for a small business owner. Fostering entrepreneurship is one of the quickest ways the Town of Vail can support creation and attraction of new businesses that can add vitality to the local economy. And by supporting an environment that nurtures new business owners, Vail can help provide career paths for people who want to build a life in Vail. Other communities have found value in establishing networks for young professionals or entrepreneurs, but a past effort in Vail is said to have borne little fruit despite ample funding. Some small business owners recommend that Vail take a practical approach to fostering new business development. A focus group convened for the Steward Vail plan recommended that the town find ways to streamline its permitting processes or make the requirements easier to understand. The intention would be to spare new businesses from the risk of unnecessary delays that could force them to run up debt or even founder before they have a chance to open the doors. As an initial move, the Town of Vail's Economic Development Department can convene local business operators and the Vail Chamber and Business Association to identify issues holding back new business development and develop a plan for mitigating various challenges. Producing a series of instructional videos could provide greater clarity around code requirements. The Town also can consider tapping the resources of the Northwest Small Business Development Center, headquartered in Eagle and serving 10 mountain counties, or the Colorado Mountain College in Edwards to create or provide supports for new entrepreneurs to succeed. For inspiration, Vail could look to an ongoing collaboration between Gunnison County's Tourism and Prosperity Partnership and Western Colorado University to advance outdoor recreation-focused economic development. A shared agenda for the Town of Vail and Vail Resorts 55 The town of Vail and its top employer are in an unprecedented time of conflict, stemming from a close Council vote to spare bighorn sheep grazing grounds from development into housing for Vail Resorts' workers. Despite these current difficulties, the Town of Vail and Vail Resorts have far more to gain than lose over the next 10 years by coming together in a spirit of collaboration. It will be important for both organizations to create a shared agenda for action on several shared concerns, including the following. Both organizations share a deep commitment to fostering extraordinary experiences for visitors and to reducing carbon emissions. Vail Resorts has proclaimed a "Commitment to Zero" by 2030, while the Town of Vail is seeking a 25 percent reduction in emissions by 2025 and a 50 percent reduction by 2030. Both are dedicated to expanding housing, childcare, and transportation options for Vail's workforce. They can find even more opportunity in continued joint efforts to elevate customer service through Prima Vail and in targeting desirable travelers whose spending can support all that Vail offers. Vail is not the only Vail Resorts' destination town that feels a loss of connection with the company that makes so much happen in its community. For many, the relationship changed profoundly after Vail Resorts went public and shifted focus to optimizing outcomes for 42 resorts. By considering taking the lead on discussions with other major Vail Resorts host destinations, the Town of Vail could join in a concerted effort with peers to share best practices and solutions and, collectively, seek to shape a more productive relationship with their prime employer. By finding ways to work together in the next 10 years, to collaborate around shared interests and identify new ones, the Town of Vail and Vail Resorts can advance their own agendas as well as create a shared agenda to the benefit of the Vail community. Key Objectives 1. LEGACY OBJ ECTIVE : Double the supply of deed-restricted housing – from 1,050 to 2,100 – for Vail residents and workers by 2032 through a regenerative, collaborative approach. 2. Join forces to create an integrated network of transit services connecting the Vail community with major hubs and the rest of Eagle County. 3. Collaborate on a wide -ranging childcare strategy to support the needs of Vail’s working families. 4. Leverage partnerships across Eagle County to expand the positive impacts of Vail’s climate initiatives. 5. Join in partnerships to stimulate local entrepreneurship as a way of diversifying Vail’s economy and creating career pathways. 6. Continue to build and strengthen partnership with Vail Resorts to identify solutions for achieving shared objectives. 56 Enhance Vail's 'World -Class Experience.' Foster memorable experiences and positive interactions to serve all in Vail. From its earliest days, Vail has built its reputation as a top resort through steady devotion to creating a world-class experience for its visitors. Travelers across the U.S. and the globe are inspired by the warmth of Vail locals, gracious service at one-of-a -kind hotels and restaurants, signature ski experiences, summer concerts with top symphony orchestras, and the chance to shop famous luxury and outdoor brands on storybook pedestrian streets. Vail's commitment to delivering a world -class experience is unshaken despite a myriad of pressures on local quality of life in re cent years. Vail and downvalley residents alike say maintaining a high level of customer service is extremely important. Some hospitality providers, however, are sounding alarms that workforce pressures are threatening to erode Vail's hard-won brand for excellence . Vail's most recent winter visitor trip survey sounded a warning note. About 16 percent of visitors in winter 2021-22 said Vail's service levels had declined, with 5 percent calling it "much worse." To protect and grow the heart of its appeal, Vail can be an industry leader in finding new ways to put people first, prioritize positive experiences, and keep hassles to a minimum. To safeguard and continuously improve the almost magical experience of Vail, it will be vital to find ways of mitigating impacts such as congestion, parking pressures, and overuse of trails and other resources. Vail can continuously build on its famous practice of hospitality to create unforgettable experiences for new audiences of travelers. By building on the strength of it s cultural scene, Vail can offer exciting new experiences year-round, while making its economy more resilient. Already famed as a healthy outdoor destination, Vail has opportunity to build on burgeoning interest in health-focused travel by enhancing wellne ss experiences -- in ways that will benefit locals, too. And to show it's listening to those for whom Vail is not a lifestyle but a way of life, the town can find ways to broaden access to the world-class experience to reward local workers and those who st eward Vail. The future lies in seamless travel. Over the 10-year arc of this plan, the travel economy is projected to lean more heavily into technology to manage visitor flows, deliver insights into customer preferences and behaviors, mitigate travel has sles, and eliminate tedious or rote aspects of many tourism jobs. Many touch-free, no-contact innovations inspired by pandemic restrictions already are now widely accepted practices. Most major hotel operators offer guests ways to manage their stays with a phone. Interacting with QR codes is now so easy that digital menus are commonplace. This is just the beginning. The U.S. Travel Association has begun sponsoring an annual one -day conference, the Future of Travel Mobility, bringing together experts from airlines, hotels, and attractions to share insights into ways that technology is transforming the experience of travel. At a very practical level, tourism technology is being touted as a way to address workforce shortages. It's also a way of reshaping worker satisfaction by eliminating rote tasks and making jobs more meaningful. 57 This year in Vail, employees of Vail Resorts are beta-testing a new mobile Epic Pass. On track for rollout in the 2023/24 North American ski season, mobile passes will be delivered instantly upon purchase. It's a win for guests. With a mobile -pass enabled phone in their pocket, they can avoid ticket windows, breeze through lines to the gondolas, and own a pass that can't get lost. If they prefer a plastic pass, they can still get one. It's a win for Vail Resorts. Lines will move quicker, fewer employees are needed to check and replace passes, and mobile passes cost less than producing plastic cards with RFID chips. It's even a win for the environment because mobile passes will reduce plastic waste. Many in Vail may instinctively shrink from incorporating hands -free solutions into the town's high-touch hospitality culture. The opportunity for Vail lies in using its superpower knack for hospitality to humanize technology-enabled experie nces. Vail Resorts says its mobile Epic Pass means the job of a "liftie" can switch from checking plastic passes to advising guests on safety, comfort, or the best slopes. Hotel operators already are using mobile check-in to elevate the role of front desk clerks into ambassadors of hospitality. Giving guests ways to text late arrivals, check outs, or requests for house-keeping can be seen as a real convenience -- especially when there's a personalized response in return. While many mountain resort communities are struggling to improve cell service or acquire broadband, Vail is well-positioned to lead the way in hospitality-focused technology. Given the town's long-time investment in an outdoor LTE cellular system, Vail believes it stands as the most connected resort in North America, with more than 100 free wireless access points. The Town of Vail can use this advantage to energize its guest experience with new conveniences. To generate a strategy, the town can convene a se amless travel steering committee or advisory group. This group would consider ways that technology could connect guests more effectively with all they need while visiting Vail, whether transit, parking, restaurant reservations, tickets, gear, featured shopping experiences, guidance to less -busy trails or attractions and tips for traveling sustainably. A smart strategy would be grounded in making it easier for Vail visitors to connect with more desirable experiences during their stay, thereby increasing their trip satisfaction and, potentially, their trip spending. Various providers can support development of systems connecting visitors with experiences from the day they arrive at the airport until the day they leave. These systems can include opt-in featu res, allowing visitors to be served with invitations for special events, offerings, or other messaging. Vail Resorts already is using similar technology to guide pass -holders to shorter lift lines or better snow. This approach can even be used to support a destination's sustainability goals. The ground-breaking Ol’au Palau initiative provides guests who share care for the fragile Pacific Island with ways to access unique experiences, including opportunities to explore little -known spots. Geolocation providers can track visitor behaviors. Technology also can provide answers to some of Vail's most perplexing questions and give the town ways to elevate and protect the quality of a Vail experience. A host of providers -- 58 including Zartico, Arrivalist, Symphony, and Datafy -- now ingest geolocation-based data to deliver insights into traveler movements and behaviors. These providers can share insights into where travelers originate, how long they stay, what they buy, and where they go. This anonymized information can be overlaid with a destination's other data streams to deliver actionable answers to many questions. While these insights can deeply inform marketing strategies, they also equip destinations with important tools for managing visitors. For instance, a geolocation data provider could give Vail insight into the ebb and flow of visitors throughout the year, even on a daily basis. It can shed light on which visitors go up on Vail Mountain, stay in town, or do both. It can give town planners insight into what proportion of I-70 motorists hop off at a Vail exit to stay a while. It can sort out residents from commuters and visitors and create understanding about who is using Frontage Road parking. It can show which trails are busy, and which aren't. It can shed light on whether Front Range visitors are showing up for the day or whether they're contributing to Vail's tourism economy. Acquiring ongoing access to these kinds of insights will equip Vail to make better decisions across the board. Available and emerging technologies also can provide Vail with tools to systematically address frustrations, such as parking pressures, that can blemish the experience of Vail. A standing joke in Vail is that there's no traffic ... until you try to park. Given Vail's mostly pedestrian downtown streets, maintaining access to parking is essential for downtown businesses and eateries to thrive. The newly approved Eagle County Regional Transportation Authority (ECTRA) is geared to provide new ways to spare workforce, guests, and locals from finding a spot to park downtown. But until those solutions come online, driving a personal vehicle is by far the quickest and often the more cost -effective option. Technology can support policies for parking and trails. For now, controlling access to parking is one of the primary ways the Town of Vail has to manage the number of people in town, including the number of people who can have easy access to Vail Mountain. The approved capacity of Vail Mountain -- capped at 19,900 people a day -- is embedded in Vail Resorts' lease agreement with the U.S. Forest Service and is expected to remain in place until 2031. In October 2022, the Town Council adopted recommendations of a parking and mobility task force addressing some of the community's biggest concerns. These include sharp new limits on Frontage Road parking, preservation of one -hour and overnight free parking in Village parking garages. Most remaining recommendations focused on using pricing to influence parking choices on peak and off-peak days of this year's 164-day ski season. It will be important for Vail to continue evolving parking policy as new ECTRA options come online. This includes work to clearly define the town's goals for use of its parking, especially on peak days, and tailor policies to support desired outcomes. For example, if a goal is to encourage day-tripping skiers to use outlying parking lots and catch shuttles to 59 town, policies and infrastructure should support that direction. As policies are created, the town can customize digital solutions to support compliance. Available parking technology allows visitors to reserve and pre-pay for parking spots or get alerts and guidance to other options if parking lots are full. Similar technologies can be deployed to manage access and use of trails, to protect them from overuse and to protect wildlife habitat. The Town of Vail greatly reduced impacts and overuse of the Booth Lake Trail this past summer by eliminating vehicle parking and initiating a “Bus It to Hike It” c ampaign, encouraging hike rs to use free shuttle service to the trailhead. With the launch of the town’s electric-bike sharing program, hikers could also “Bike It to Hike It.” Visitation on the trail dropped by a third in one year, with just 19,797 visitors in 2022, compared with 29,510 in 2021. Available technology can provide even more tools for managing use. These could include easy access to ticketing systems for shuttles to desirable trails, guidance to less busy ones, notice when trails are shut down t o give wildlife a rest, or even reservations for an e -bike. To maximize its investment and ensure a high-functioning, integrated system to guide desirable outcomes, Vail will be well-served to develop a technology strategy and seek a provider or providers who can provide integrated solutions. Building ever warmer welcomes Vail has built a well-deserved reputation as a welcoming destination -- as have its top mountain resort competitors. A 2022 brand perception study commissioned by the Vail Local Marketing District Advisory Council shows Vail's targeted travelers tend to place Vail in the middle of the pack for many attributes, including its welcome of visitors. The study, fielded by Strategic Marketing and Research Insights (SMARI) , also shows that people who recently visited Vail hold far more positive views. They ranked Vail extremely highly as "a welcoming and friendly place" and nearly as high for being "welcoming to all people." The same study showed that travelers are more likely to choose destinations they see as welcoming. Vail can increase its attraction for desirable new visitors by doing a better job of sharing what it already does well. By better communicating its long-standing commitment to warm hospitality, Vail can remind its loyalists why they love Vail and improve its image among those who have yet to experience Vail hospitality. Taking active steps to highlight this very real attribute of a stay in Vail -- whether through testimonials, PR, reviews, or other forms of marketing -- not only will increase the likelihood for visitors to choose Vail over its competitors but could head off attempts by others to claim ground that Vail should own. With interest in travel softening over the past year, many destinations will necessarily be considering how to sharpen their competitive edge. Another opportunity for Vail in coming years is to take the quality of its welcome for visitors to new heights. The town's Prima Vail program -- created with resources shared by the Vail Chamber and Business Association and Vail Resorts -- is seen as an effective tool for local employers to share customer service training with their workforces. It will be 60 important for the Town to encourage operators to embrace the program and for workers to take the training. It will be important to Vail to keep these trainings fresh and on point with important trends so that Vail's workforce can deliver hospitality in meaningful ways -- and create powerful memories of the Vail experience. A Colorado Tourism Office study commissioned in 2018 delivered important insights into the hospitality practices that were important to travelers. What mattered most to travelers across the U.S. was being made to feel they were accepted for who they are. A close second was being made to feel that someone cared about their experience. For most travelers, being treated like a VIP was way down their list of priorities. Especially given a growing focus on creating more inclusive approaches to travel and outdoor recreation, Vail would be well-served to inspire its workforce to address basic human desires to feel accepted and cared about when they travel. This should include specific trainings for workers to share sensitivity to people with backgrounds different from their own. Creative economies have year-round appeal For those who love music and the arts, one of the chief joys of visiting Vail, especially during the summer, is to experience an exceptional lineup of performances at the Gerald R. Ford Amphitheatre. Offerings range from top symphony orche stras such as the New York Philharmonic to the Vail Dance Festival to free weekly Hot Summer Nights concerts. Vail Jazz offers live performances in the villages and other venues. Bravo! Vail Executive Director Caitlin Murray says her organization would not exist without the support of tourism and Vail's seasonal homeowners, but Vail's rich lineup of cultural offerings is not yet widely associated with the town's brand. While the 2022 SMARI study shows targeted U.S. travelers rate Vail highly as a winter outdoor sports destination, few seem to be aware of Vail as a place that offers "interesting cultural experiences." Vail can change this perception. Other mountain resort destinations are investing in event and cultural venues to create year -round appeal, in some cases to build resiliency for a tourism economy facing the threat of shorter winter seasons. With more than enough visitation during the summer months, Visit Lake Tahoe is using its new Tahoe South Events Center to attract travelers the rest of the year. In Vail, discussion already is under way about the potential of a new community or cultural center to provide year-round venues for performances, whether by local performers or artists that would hold appeal for broader audiences. Given Vail's history of sell-out performances and strong donor support for its multi- million -dollar creative economy, the community should take a close look at the potential for creating more year-round cultural offerings. This should start with a feasibility study for a new cultural center -- or community center with cultural venues. Incorporating elevated cultural experiences into a widely recognized component of Vail's "World-Class Experience" could pay strong dividends. It can be an effective way for Vail to expand its lineup of world-class experiences, elevate its image among travelers who love culture and the outdoors, and build resiliency for its tourism economy. Celebrating the arts -- 61 especially by providing arts experiences for all -- also can be a way of bringing Vail's community together and bridging social divides. As a related step, Vail may wish to consider extending the reach of its Art In Public Places program with the formation of a Vail Arts District to recognize and encourage more public art expressing Vail's spirit and reinforcing a sense of place for a community built from scratch just 60 years ago. As the town's public arts program has recognized and supported, art is a way for Vail to attract and connect visitors with the communit y. Adding an arts district to an already robust Art in Public Places program also can be a way for Vail to further attract and support the work of local artists. Travelers are seeking emotional and physical wellness Across the world, as people began emerging from pandemic conditions, interest in wellness and self -care began a steep climb. In late 2021, the Global Wellness Institute projected a 10% annual growth rate for the global wellness economy, with revenues rising from $4.4 trillion in 2020 to $7.2 trillion in 2025. The fastest growing sector by far was wellness tourism, expected to grow by 20.9 percent a year through 2025, with total impact rising from $435.7 billion to $1.276 trillion. The Institute defines wellness tourism as travel associated with the pursuit of maintaining or enhancing one’s personal well-being. About the same time, a Destination Analysts survey asked U.S. travelers how they intended to change their lifestyle following the pandemic. By far the largest share of respondents -- 84% -- said they planned to be more mindful of wellness or self-care. The next -largest response: 70.8% said they would seek a healthier work/life balance. Already valued as a healthy outdoor destination, Vail has a clear opportunity to build on this growing travel priority and expand its world-class experience to encompass exceptional opportunities for physical and emotional wellness. This direction not only would position Vail well for desirable visitors seeking renewal and better health, it holds strong benefits for a community where many say they are stressed physically and mentally from multiple jobs and struggling to maintain a good quality of life. Vail finds much inspiration from a recent sister city exchange with St. Moritz, where relaxing wellness and spa treatments are as much a part of the experience as time on the slopes. St. Moritz' wellness experiences are open to all at a community wellness center offering a pool, hot springs, and spa treatments. While Vail has no hot springs, it does have renown ed medical providers, including the Steadman Clinic, which offers a suite of orthopedic services that already inspire medical tourism. Like St. Moritz, Vail also has a strong lineup of hotels offering luxurious spa treatments, facilities for retreats, wellness activities, and outdoor hot tubs providing relaxation year-round. Vail can build on this ready-made opportunity to expand its world-class experience to be a sanctuary for people seeking better health and to reset and renew. A short -term step would be to compile an inventory of existing wellness and self-care resources that could be shared on Discover Vail, in campaigns, with wellness influencers, in PR outreach, and 62 with the Vail community. A longer-term strategy would be to engage the community's medical and wellness providers, including such providers as Vail Health, local guides, and yoga, fitness, or meditation leaders. By joining forces, the Town and its medical and wellness community can create wins for local health while attract ing growing numbers of people rethinking their lives to seek better physical and emotional wellness as they travel. A "World -Class Experience" for the Vail Community. Waves of resident sentiment studies across the U.S. since 2018 have made it clear: People grow disenchanted with tourism in their communities when they feel left out of the tourism economy. One of the best ways a destination can offset these concerns is by taking active steps to ensure that its community gets a chance to experience the benefits of its tourism economy. The town of Crested Butte sets aside a late summer week every year for Vinotok, said to be a boisterous street party with wine, dancing, and torching of a character called the "Grump." It's for locals. If you don't live in Crested Butte and you call to find out the dates, they won't tell you. It's the week when the town is reserved for the community. Magda King, general manager of the Antlers at Vail, is on a one -woman mission to ensure that her team has opportunities to join in the life of Vail. She encourages them, even if they don't live in Vail, to attend town events like the Vail Social. As a special outing, she bought gondola tickets for every team member to ride to the top of Vail Mountain. That experience gave a housekeeper who'd worked in Vail for 30 years her first glimpse of the view that visitors enjoy year -round. To attract and retain workers, to build a stronger sense of belonging in Vail, to address unhappiness with tourism, it is vital for Vail to ensure that its community has opportunities to experience Vail's world-class experience, too. As anothe r business operator noted during an October public engagement session, "Take care of your people, and they'll take care of your customers." Vail has steadily invested the proceeds of its humming tourism economy back into the community, but many are not see ing the connection to their lives. The Prima Vail program offers a ready-made opportunity for connecting workers who complete trainings with opportunities to experience the town they serve. Vail Welcome Center Manager Amanda Zinn offered an idea for community members -- potentially visitors too -- to become "Vail Stewards" by completing a series of actions to care for Vail. Rewards and recognition could include chances to enjoy Vail amenities that local workers can't typically afford. During its formative years, the town of Vail built one of the most successful visitor economies in the world by keeping a sharp focus on the needs of the visitor. Throughout the Steward Vail planning process, the Town of Vail has heard from community members seeking attention to their needs as well. As Vail celebrates its 60 years of existence throughout this ski season, the town is seeking ways to revive and honor the spirit of fun and camaraderie so many say infused Vail's community in its early days. To create a legacy 63 from the anniversary celebration, Vail should consider ways of connecting locals with the extraordinary "World-Class Experience" they continue to create. One possibility to consider is giving the Vail community a week of its own. Key Objectives 1. Embrace technology to deliver seamless experiences, manage resources such as parking and trails, and create strategies to increase visitor spending. 2. Continuously build Vail’s image as a community that offers first -class service and accepts everyone for who they are. 3. Leverage the local arts and creative economy to create exceptional year-round cultural experiences and diversify business development. 4. Expand the appeal of Vail’s healthy outdoor lifestyle by advancing opportunities for physical and emotional wellness, especially in partnership with renowned healthcare providers in Vail. 5. Broaden access to the world-class experience to attract and reward workforce and local stewards. 64 2022 Sustainability Image Research June 2022 65 Contents Content Slide Background & Objectives 3 Methodology 4 Sustainability 5 Competitive Context 21 Comprehensive Image Evaluation 32 Appendix: Trip Types 46 Appendix: Questionnaire 53 2SMARInsights 66 Background & Objectives •In addressing sustainability issues, an understanding of prevailing perceptions and identifying consumers who value what Vail has to offer are critical. By identifying and attracting the right consumers, and knowing the right messaging for those consumer s, Vail will be more effective in generating economic impact and satisfying residents. •SMARInsights designed this Sustainability Image research study in collaboration with the Town of Vail to provide valuable information in development of the Stewardship Plan. •This research was done within a framework of the competitive environment that is unique to this destination. The research was designed to assess the overall image of Vail from the perspective of recent and potential visitors in order to identify key a ttitudes and perceptions of the destination, including its strengths and weaknesses. Our research in this area focuses on how a destination is positioned in the context of consumer perceptions vis -à-vis those of key competitors. •The survey instrument was designed to gather insights into the current image of the destination compared to key competitors, and how sustainability fits into both the image and appeal of the destination. A variety of image attributes were presented t o better understand the images and messages that are most productive and what differentiates Vail –especially to those visitors that value sustainable destinations. 3SMARInsights 67 Methodology 4 •Data was gathered via an online survey designed by SMARInsights and the Town of Vail. •The surveys were conducted from April 29th to May 5th, 2022. •National sample providers with demographically representative respondents were used so that the research results can be projected to the population. •Respondents were qualified as adult leisure traveler decision-makers with household income of at least $75,000. •A total of 1,204 surveys were completed in the U.S. SMARInsights 68 Sustainability 5SMARInsights 69 Travel Motivators Overall •A key question for this process is to understand the importance of sustainability when consumers are choosing a destination –as well as what sustainability means to consumers. •To begin to address this issue, consumers were asked to indicate the motivational appeal of a number of factors. •Only 23% said that a destination’s commitment to sustainability was not motivating –but only 32% said it was “very much motivating.” There are many other factors that are more motivating. 6SMARInsights 15% 17% 31% 32% 37% 37% 38% 40% 40% 40% 40% 41% 45% 56% 59% 62% 68% 82% Availability of cannabis World-class golf Fun nightlife A destination’s commitment to sustainability Intimate inns and romantic experiences Health/wellness and rejuvenation Outdoor adventure opportunities like biking, ziplining etc. World-class resorts Romantic settings Availability of package travel options Shopping Hiking Attractions for kids and the family A lot of culture and history National parks and other outdoor options Amazing food and wine options Destination that is welcoming to everyone Beautiful scenery Very much motivating 70 Why Sustainability Isn’t Motivating •The 23% of the consumers who indicated that the destination’s commitment to sustainability was not motivating were asked why. •The most prevalent reason was that it wasn’t a priority for a vacation destination, followed by it not being important overall, finding other factors more important, and not having enough information. 7SMARInsights 4% 5% 7% 9% 9% 11% I don't want to think about this when I am on vacation I don't think there are major differences between destinations I don't have enough information on the destination to make a decision There are other things more imporant to me for a vacation destination Issue isn't important to me It isn't a priority in choosing a vacation destination Reasons that Destination's Sustainability Isn't Important 71 Sustainability Motivation by Trip Type •It is noteworthy that the importance of sustainability varies based on the type of trip that consumers are taking. Among the four trip types that were explored, it is more important for those taking trips to a mountain destination –either winter or summer. •It is least important to those choosing a luxury resort experience, and it is somewhat less important to those taking an outdoor adventure trip. 8SMARInsights 38% 35% 26% 22% Winter trip to a mountain destination Summer trip to a mountain destination Outdoor adventure trip Luxury resort experience A destination's commitment to sustainability is very much motivating 72 Sustainability Motivation -Visitors •While many travelers indicate that a destination’s efforts in sustainability are not motivating –that is not the case among recent visitors to Vail (2020-22). •Among this group, 61% indicate that sustainability is very much motivating, with another 34% indicating it is somewhat motivating –and only 5% responding “not at all.” •Clearly, this is an issue that is important to current Vail visitors. 9SMARInsights 61% 29% 34% 47% 5% 24% Vail visitors Non-visitors Importance of Sustainability Among Visitors not somewhat very much 73 Sustainability Programs •Consumers were also asked to indicate what types of programs were important to them when they were considering a destination based on sustainability. •The type of programs they chose focused on having local food and beverage, being walkable/bikeable, recycling and wildlife protection. •Recognition as a sustainable destination was less important, as were any features related to electric transportation (buses, cars or bicycles). 10SMARInsights 24% 29% 31% 31% 32% 32% 33% 36% 38% 41% 42% 47% 48% 50% 52% 53% 58% 59% E-bike share program Availability of electric vehicle rentals Destination has received Sustainable Destination Certification recognized by Global Sustainable Tourism Council Destination has been Top 100 Sustainable Destination designation Opportunity to participate in adopt-a trail programs such as trail cleanup or building opportunities Electric buses for visitor use Easy access to electric vehicle charging ports Destination has a Climate Action Plan High percentage of destination's power source is renewable energy Reusable shopping bag program (disposable plastic bag ban) Ways to reduce carbon footprint through conservation of heating/lighting and other energy uses Refilling stations for reusable water bottles Support businesses that participate in local sustainability efforts Destination has a plan to manage its natural and built environment for future generations Wildlife protection programs, such as seasonal trail closures Availability of recycling Walkable, bikeable destination Availability of locally sourced food and beverages Very important when choosing a vacation destination (among those who say that sustainability is an important consideration) 74 Attitudes when Traveling •For many communities, another aspect of sustainability is how visitors interact with residents. •Visitors were asked about their attitudes when they travel to better understand how these attitudes mesh –or don’t mesh –with attitudes toward sustainability. •Most visitors agree that it is important to be courteous to residents, and to keep a destination clean. But many want to indulge themselves and some feel that on vacation they can be loud and have someone else pick up after them. 11SMARInsights 2.5 3.0 4.1 4.1 4.1 4.2 4.3 4.3 4.5 4.6 When I’m on vacation, I feel like I shouldn't have to pick up after myself When I'm on vacation, I think late-night noise is fine I think vacation is the time to try new things and take more risks When I'm on vacation, I enjoy talking with people who live in the place I'm visiting When I go on vacation, I like to cut loose and enjoy myself When I travel, I enjoy experiencing a place the way the locals do On vacation I like to indulge myself When I am on vacation, I prefer to support local businesses, restaurants and shops When I visit a place, I do my part to keep it clean I think it's important to be courteous to people who live in the places where I vacation Attitudes when Traveling (mean rating on a 5-point scale) 75 Traveler Segments •In exploring how to think about sustainability issues and consumers, two different segmentation solutions can be explored. One focuses on those travelers who are motivated by sustainability. While 32% indicated that sustainability was very motivating, just 13% r ated sustainability very important and rated it among the most motivating criteria. These travelers are classified as “sustainable travelers.” •When attitudes are considered, about 30% of the consumers can be considered “responsible” –they are more concerned with courtesy, cleanliness and polite behavior. On the other hand, about 26% are “carefree” –on vacation they want to be less concerned and have more fun. The remainder (43%) are considered “normal.” 12SMARInsights Others 87% Sustainable Travelers 13% Sustainable Travelers Responsible 30% Normal 43% Carefree 26% Attitude Segments 76 Traveler Segments -Visitors •A review of these same classifications among recent Vail visitors uncovers some interesting findings: —While more than 60% of the recent visitors indicate that a destination’s sustainability efforts are very motivating, 34% rated sustainability very motivating and rated it among the most motivating criteria. Thus, in terms of those motivated more by sustainability (sustainable travelers) the percentag e is much lower –34%. This is significantly higher than the 13% in the general traveling population. —Perhaps more interesting is that recent Vail visitors have attitudes that classify half of them as “carefree” visitors. This suggests that while they are motivated by sustainability efforts, they may exhibit behaviors that don’t totally support care and courtesy when they are visiting. 13SMARInsights Sustainable Travelers 34% Others 66% Recent Vail Visitors Responsible 29% Normal 20% Carefree 51% Recent Vail Visitors 77 Traveler Segments •One of the most noteworthy findings is that there is not a strong correlation between those who are more responsible as travelers and an interest in sustainability. •The percentage of consumers who are motivated by sustainability is similar across the attitudinal groups. This indicates that for a destination there are perhaps two different issues to address –sustainability and consumer behavior/respect for the community. In other words, attracting visitors who are interested in sustainable programs will not ensure that they are courteous visitors who respect locals with courtesy and act responsibly in other ways. 14SMARInsights 15%12%13% 85%88%87% Responsible Normal Carefree Attitudes & Sustainability Other Sustainable 78 Sustainability Programs -Visitors •Vail visitors place a much greater importance on sustainability overall, as well as specific programs. •The top programs among visitors are locally sourced food & beverage, refilling stations, a destination plan, having a high percentage of renewable energy and being a walkable and bikeable destination. •But features related to electric vehicles (bikes, rentals, bus & charging stations) are where some the largest gaps occur between visitors and the general public. •Recent visitors also give much more weight to the recognition programs such as the sustainable destination certification and being a Top 100 Sustainable destination. 15SMARInsights Program Overall Recent Visitors Difference Availability of locally sourced food and beverages 59%75%16% Refilling stations for reusable water bottles 47%72%25% Destination has a plan to manage its natural and built environment for future generations 50%72%22% High percentage of destination's power source is renewable energy 38%68%30% Walkable, bikeable destination 58%68%10% Support businesses that participate in local sustainability efforts 48%67%19% Availability of recycling 53%67%14% Easy access to electric vehicle charging ports 33%66%33% Ways to reduce carbon footprint through conservation of heating/lighting and other energy uses 42%64%22% Wildlife protection programs, such as seasonal trail closures 52%64%12% Availability of electric vehicle rentals 29%62%33% Destination has a Climate Action Plan 36%61%25% Reusable shopping bag program (disposable plastic bag ban)41%60%19% Destination has received Sustainable Destination Certification recognized by Global Sustainable Tourism Council 31%57%26% Destination has been Top 100 Sustainable Destination designation 31%57%26% Electric buses for visitor use 32%57%25% Opportunity to participate in adopt-a trail programs such as trail cleanup or building opportunities 32%55%23% E-bike share program 24%47%23% 79 Sustainability Programs -Carefree Travelers •Carefree travelers may want to indulge themselves on vacation, but they do care about sustainability –and their reactions to specific programs are also interesting. •Overall, among those carefree travelers who indicate sustainability is important, there are some programs where they have a much stronger interest –adopt-a -trail programs, availability of electric vehicle rentals and e -bike share programs. •They seem to be less interested in a walkable/bikeable destination, the destination sustainability plan, recycling and supporting businesses in their sustainability efforts. 16SMARInsights Program Overall Carefree Difference Availability of locally sourced food and beverages 59%52%-7% Availability of recycling 53%49%-4% Walkable, bikeable destination 58%48%-10% Refilling stations for reusable water bottles 47%47%0% Wildlife protection programs, such as seasonal trail closures 52%47%-5% Destination has a plan to manage its natural and built environment for future generations 50%46%-4% High percentage of destination's power source is renewable energy 38%44%6% Destination has a Climate Action Plan 36%44%8% Support businesses that participate in local sustainability efforts 48%43%-5% Ways to reduce carbon footprint through conservation of heating/lighting and other energy uses 42%43%1% Reusable shopping bag program (disposable plastic bag ban)41%43%2% Opportunity to participate in adopt-a trail programs such as trail cleanup or building opportunities 32%43%11% Easy access to electric vehicle charging ports 33%41%8% Availability of electric vehicle rentals 29%40%11% Destination has been Top 100 Sustainable Destination designation 31%39%8% Electric buses for visitor use 32%39%7% Destination has received Sustainable Destination Certification recognized by Global Sustainable Tourism Council 31%36%5% E-bike share program 24%33%9% 80 Sustainable Traveler Segment •This is further reinforced by a review of the attitudinal differences between sustainable travelers and others. •Generally, there are not major differences –although sustainable travelers are less likely to agree with the statement “when I am on vacation, I feel like I shouldn’t have to pick up after myself.” •Otherwise, their attitudes are very similar to other travelers. 17SMARInsights 2.30 2.98 4.09 4.09 4.15 4.20 4.22 4.33 4.54 4.57 2.57 3.03 4.08 4.15 4.08 4.18 4.26 4.30 4.60 4.54 When I’m on vacation, I feel like I shouldn't have to pick up after myself. When I'm on vacation, I think late-night noise is fine. I think vacation is the time to try new things and take more risks. When I go on vacation, I like to cut loose and enjoy myself When I'm on vacation, I enjoy talking with people who live in the place I'm visiting. When I travel, I enjoy experiencing a place the way the locals do. On vacation I like to indulge myself When I am on vacation, I prefer to support local businesses, restaurants and shops I think it's important to be courteous to people who live in the places where I vacation. When I visit a place, I do my part to keep it clean. Mean agreement with statements (5 point scale) Others Sustainable Travelers 81 Sustainable Traveler Segment •Past research that SMARInsights has conducted showed that it was a younger audience that became concerned with sustainability first. But over time, it has become a more widespread concern. Thus, in this study, there are few demographic differences b etween the sustainable traveler segment and others. •It should be noted that the sample for this study is all higher income travelers, which results in a more educated population –and that these results are not necessarily representative of all travelers. 18SMARInsights 30% 40% 30%28% 41% 30% 18-34 35-54 55+ Age Others Sustainable Travelers 5% 14% 49% 32% 5% 13% 46% 36% High school or less Some college/technical school College graduate Post-graduate degree Education Others Sustainable Travelers 7% 53% 29% 10%7% 58% 27% 9% $75,000 but less than $100,000 $100,000 but less than $150,000 $150,000 but less than $250,000 $250,000 or more Income Others Sustainable Travelers 82 Sustainable Traveler Segment •Priorities among sustainable travelers are similar to other travelers –although there is a stronger interest in the destination having a plan to manage its natural and built environment. •This will be an important message for Vail to communicate to this audience. •Since the priorities are different among recent visitors, Vail will need to balance the messaging based on communicating with both past visitors and potential visitors –or targeting messaging for visitors in- market. 19SMARInsights 19% 20% 23% 28% 28% 32% 33% 39% 40% 42% 47% 47% 54% 56% 58% 59% 60% 62% E-bike share program Availability of electric vehicle rentals Easy access to electric vehicle charging ports Opportunity to participate in adopt-a trail programs such as trail cleanup or building opportunities Destination has received Sustainable Destination Certification recognized by Global Sustainable Tourism Council Destination has been Top 100 Sustainable Destination designation Electric buses for visitor use High percentage of destination's power source is renewable energy Destination has a Climate Action Plan Reusable shopping bag program (disposable plastic bag ban) Refilling stations for reusable water bottles Ways to reduce carbon footprint through conservation of heating/lighting and other energy uses Wildlife protection programs, such as seasonal trail closures Availability of recycling Walkable, bikeable destination Support businesses that participate in local sustainability efforts Availability of locally sourced food and beverages Destination has a plan to manage its natural and built environment for future generations Very important when choosing a vacation destination (among Sustainable Traveler segment) 83 Sustainability Insights •There are many issues that motivate consumers to choose a destination, and a destination’s sustainability practices are not as strong as key product attributes. While more than 75% of consumers indicate that this has some motivational value, only 13% find it a strong motiv ator and a differentiating factor in destination selection. •Understanding what sustainability means to consumers is also challenging. The features and programs that consumers indicated were most important were fairly general –having locally sourced food and beverage and being walkable. Other important programs related to recycling and wildlife protection programs. Features around sustainable transportation were not rated as important to consumers –and while they want a destination to have a plan, the recognition from various groups was also not rated as very important. •Even among those who are “sustainable” tourists, the focus is not on designations or more specific sustainability programs, b ut linked to having a plan, being walkable and having recycling. •There is also not a strong relationship between concern for environmental sustainability and how a visitor respects and prote cts residents and the community as a whole. A sustainable tourist can also be a carefree tourist and can act in ways that are not respectful of residents. At the sam e time, these “carefree” visitors are interested in specific sustainability programs. •Sustainability is more important to those taking a mountain trip (both summer and winter) and less important to those taking an outdoor adventure or luxury resort trip. •Most importantly, sustainability is much more important to recent Vail visitors. Just over 60% of recent visitors indicate t hat sustainability is very important, and 34% are sustainable travelers (sustainability is more important than other factors). At the same time, recent visitors are more likely to be “carefree” travelers, so their attitudes in terms of destination stewardship are not as strong. •Recent visitors are interested in different types of sustainability efforts, including programs around electric transportatio n options. They also give more weight to designations and programs that recognize the destinations’ sustainability efforts. •This suggests that messaging around sustainability will differ when aimed at past/current visitors versus efforts to attract new audiences and additional visitors. 20SMARInsights 84 Competitive Context 21SMARInsights 85 Competitive Image •Consumers rated the various destinations under consideration in terms of overall appeal. One of the biggest challenges for Vail is competition. •The results show that there is not much variation –Hawaii is slightly higher than the other destinations, but the narrow range of ratings indicates that there is a great deal of parity. •Even when ratings for Vail are considered by trip type, there is not much variation. Vail gets a stronger rating as a place for a winter mountain trip versus a luxury resort trip –but the ratings are fairly similar across the various options. •In exploring this situation, it will be important to identify ways for Vail to differentiate from the competition. 22SMARInsights 3.7 3.6 3.5 3.5 3.5 3.5 3.4 3.4 3.4 3.4 3.3 3.3 3.3 Hawaii Park City Lake Tahoe Jackson Hole Whistler Telluride Vail Aspen Breckenridge St. George/ Zion National Park Costa Rica Jackson Hole/ Yellowstone Yosemite Overall Destination Rating (mean rating on a 4-point scale) 3.6 3.5 3.4 3.3 Winter Mountain Outdoor adventure Summer Mountain Luxury Resort Ratings of Vail by Trip Type 86 Top-of-Mind Summer Mountain Vacation Destinations in North America •Consumers were asked to name destinations that come to mind for each type of trip – and again the results provide insights into the competitive challenge that Vail is facing. •For summer mountain vacations, Colorado is by far the strongest association, which is positive for Vail, but specific top- of-mind mentions are infrequent. 23SMARInsights 87 Top-of-Mind Winter Mountain Vacation Destinations in North America •Vail’s strength is clearly as a winter mountain vacation option. •Colorado and Alaska have the strongest top-of-mind association, but many consumers think of Vail. •It is still a crowded competitive situation with other destinations such as Aspen, Lake Tahoe, and Banff getting a high number of mentions. 24SMARInsights 88 Competitive Position –Mountain Trips •Another way to consider the competitive situation is likelihood to visit. Again, this varies significantly by trip type –and Vail does well as a place for winter mountain trip. In this category it has the third highest likelihood after Tahoe and Aspen. •For summer mountain trips, the situation is more challenging –with Vail in the middle. Tahoe is again the leader, followed by Jackson Hole, Aspen and Park City. 25SMARInsights 52% 48% 42%42%42%40%37%35% Tahoe Aspen Vail Breckenridge Jackson Hole Park City Telluride Whistler Likelihood to Visit for Winter Mountain Trip 39% 32% 29%27%27%25%23%22% Tahoe Jackson Hole Aspen Park City Vail Breckenridge Whistler Telluride Likelihood to Visit for Summer Mountain Trip 89 Top-of-Mind Winter Outdoor Adventure Destinations in North America •Again, for winter outdoor adventure trips, Vail has fairly high top-of-mind consideration. •Colorado dominates this category, and other competitors such Aspen, Tahoe (Lake Tahoe) and Yellowstone are also top-of-mind. 26SMARInsights 90 Top-of-Mind Summer Outdoor Adventure Destinations in North America •When thinking about summer outdoor adventure trips, consumers focus first on Florida –which suggests that their idea of an adventure trip is fairly broad. •In this category, Vail is not top-of-mind and was not mentioned, although Colorado is popular. 27SMARInsights 91 Competitive Position –Outdoor Adventure •When likelihood to visit Vail and the competitors is reviewed for outdoor adventure trips, the top-of-mind findings are reinforced. •Vail is near the bottom of the competitive set, and only 17% indicate likelihood to visit for this trip type. •Hawaii is the highest at 48% –and the survey did not include Florida, which is clearly a destination that interests consumers. •National parks also seem to be popular in this category, with Yosemite and Yellowstone being quite popular. 28SMARInsights 48% 42% 37% 34% 28%27% 22% 17%16% 13% Hawaii Yosemite Yellowstone Tahoe Costa Rica Zion Aspen Vail Breckenridge Whistler Likelihood to Visit for Outdoor Adventure Trip 92 Top-of-Mind Luxury Resort Experience Destinations in North America •While Hawaii is the dominant destination for a luxury resort experience, Vail has a strong top-of- mind position with consumers. •This is an area where Vail’s top-of-mind mentions are stronger than for other trip types. •Aspen also gets a lot of mentions, with Tahoe also mentioned 29SMARInsights 93 Competitive Position –Luxury Resort •Interestingly, while Vail is a top-of-mind luxury destination for consumers, when the specific competitive set is considered in terms of likelihood the position is not as strong. •Hawaii and Costa Rica are the places consumers indicate they are most likely to visit, followed by Tahoe and then Aspen. •Likelihood to visit Vail is lower than might be expected given the top-of-mind findings. 30SMARInsights 54% 27%26% 18% 14% 12%11% Hawaii Costa Rica Tahoe Aspen Vail Whistler Breckenridge Likelihood to Visit for Luxury Resort Trip 94 Competitive Situation Insights •Key challenges for Vail are the diversity of its image and the competitive situation. Because Vail offers a variety of types of experiences, it is harder to create a cohesive image. •People are interested in visiting Vail for different types of trips, but that actually increases the competitive pressure. The strongest top-of-mind mentions for Vail relate to winter mountain/outdoor adventure trips and luxury resort experiences. •The weakest associations are for summer trips. •But across trip-types there are other destinations that have both stronger top-of-mind image and where consumers are more likely to visit. •The competitive set varies by trip type –although Tahoe (Lake Tahoe) is a strong competitor across the various trip types and has established both strong top-of-mind presence, as well as high levels of likelihood to visit. 31SMARInsights 95 Comprehensive Image Evaluation 32SMARInsights 96 Vail –Overall Image •To further understand the competitive situation and what consumers believe about Vail, a more detailed image assessment was developed. •Consumers rated Vail and the competitors in a number of areas, using a 5-point scale. With this scale, a rating of 4.0 or higher is strong, with ratings of 3.75-4.0 being good. •The positive finding is that Vail’s rating are all in this range –except for “is a good value for the money.” •The strongest ratings are for outdoor winter activities, scenery, luxurious resorts, being upscale and offering lots of outdoor activities. •But, as shown with the competitive indices, other destinations have a lot to offer also. •Generally, the indices indicate that there is a great deal of parity in terms of image. The areas of comparative strength for Vail include outdoor winter activities, luxurious resorts and being an upscale destination. 33SMARInsights Mean rating on a 5-point scale Vail Index to Competition Offers outdoor winter activities like skiing, snowboarding, snowshoeing, etc.4.52 109 Has amazing scenery 4.45 100 Has luxurious resorts 4.37 103 Is an upscale destination 4.34 104 Offers lots of outdoor activities like hiking, biking, etc.4.32 100 Has quality food and wine/dining experiences 4.27 102 Is fun 4.25 100 Is safe 4.24 102 Has unique local restaurants/food 4.12 100 Has high quality attractions 4.11 100 Is a place with lots to see and do 4.09 98 Offers outdoor adventure activities like ziplining, kayaking etc.4.06 98 Is a welcoming and friendly place 4.05 98 Has appealing events 4.02 99 Is a good place for families 4.00 98 Is doing a good job protecting its natural resources 3.99 98 Is welcoming to all people 3.96 98 Has small-town charm 3.91 101 Is a unique vacation experience you can’t get at other places 3.88 97 Is an inclusive place 3.84 97 Has a unique history 3.81 95 Has a variety of hotels/price points 3.77 96 Has interesting cultural experiences 3.76 95 Is a good value for the money 3.46 94 97 Vail Image –Recent Visitors •Recent Vail visitors give the destination higher ratings across the board. •The largest differences are for value, cultural experiences, being unique, inclusive and good for families. •Recent visitors are also more positive about the job that Vail is doing to protect its natural resources. •Yet, even though the ratings are more positive, Vail still receives only average ratings compared to the ratings for the competition. Most of the indices are around 100 –average with the competition. •Even among visitors, it is a challenging competitive environment. 34 Mean rating on a 5-point scale Non-visitors Recent visitors Difference Index to Competition Is a good value for the money 3.30 4.20 0.90 100 Has interesting cultural experiences 3.64 4.30 0.66 99 Is a unique vacation experience you can’t get at other places 3.77 4.40 0.63 100 Has a unique history 3.70 4.32 0.62 99 Is a good place for families 3.90 4.48 0.58 100 Is an inclusive place 3.73 4.31 0.58 98 Has small-town charm 3.81 4.38 0.57 100 Has a variety of hotels/price points 3.67 4.23 0.56 99 Is a welcoming and friendly place 3.96 4.48 0.52 100 Is welcoming to all people 3.87 4.37 0.50 101 Has appealing events 3.93 4.43 0.50 99 Has unique local restaurants/food 4.04 4.48 0.44 100 Is a place with lots to see and do 4.01 4.44 0.43 100 Is doing a good job protecting its natural resources 3.91 4.34 0.43 99 Is safe 4.16 4.56 0.40 101 Has high quality attractions 4.04 4.43 0.39 100 Offers outdoor adventure activities like ziplining, kayaking etc.4.00 4.36 0.36 99 Is fun 4.19 4.53 0.34 100 Has quality food and wine/dining experiences 4.21 4.52 0.31 100 Has luxurious resorts 4.33 4.55 0.22 101 Offers lots of outdoor activities like hiking, biking, etc.4.28 4.50 0.22 100 Is an upscale destination 4.30 4.51 0.21 101 Offers outdoor winter activities like skiing, snowboarding, snowshoeing, etc.4.50 4.64 0.14 103 Has amazing scenery 4.45 4.48 0.03 99SMARInsights 98 Destination Sustainability Image •The rating for doing a good job of protecting its natural resources indicates that Vail is below the average of the destinations rated. •In fact, while the rating itself (3.99) is fairly strong compared to destination ratings benchmarks, other destinations get much higher ratings as shown in the indices on the prior slides. •The only destinations to get lower ratings for protecting natural resources were Costa Rica and Aspen. 35SMARInsights 3.89 3.95 3.99 4.02 4.05 4.07 4.19 4.20 4.21 4.21 4.23 4.26 4.41 2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 5.0 Aspen Costa Rica Vail Jackson Hole/Yellowstone Breckenridge Lake Tahoe Telluride Park City Whistler St. George/Zion National Park Jackson Hole Hawaii Yosemite Is doing a good job protecting its natural resources (5-point scale) Average Good (top 25%) Excellent (top 10%) 99 Sustainable Traveler Segment •It is also noteworthy that Vail rates lower on sustainable image among the sustainable traveler segment. •This group is also more likely to think that Vail is upscale and less likely to think that it is charming and welcoming. 36SMARInsights Vail Mean Ratings (5-point scale)Others Sustainable Travelers Difference Has amazing scenery 4.44 4.55 0.11 Is an upscale destination 4.33 4.43 0.10 Is a unique vacation experience you can’t get at other places 3.87 3.97 0.10 Has a unique history 3.80 3.89 0.09 Offers lots of outdoor activities like hiking, biking, etc.4.31 4.38 0.08 Offers outdoor adventure activities like ziplining, kayaking etc.4.06 4.11 0.05 Has quality food and wine/dining experiences 4.26 4.29 0.03 Is welcoming to all people 3.96 3.98 0.02 Is a place with lots to see and do 4.09 4.11 0.02 Is a good place for families 4.00 4.00 0.00 Is safe 4.24 4.23 -0.01 Is a good value for the money 3.46 3.43 -0.03 Is doing a good job protecting its natural resources 3.99 3.95 -0.04 Has high quality attractions 4.11 4.08 -0.04 Has unique local restaurants/food 4.12 4.08 -0.05 Has appealing events 4.02 3.97 -0.05 Offers outdoor winter activities like skiing, snowboarding, snowshoeing, etc.4.53 4.46 -0.07 Is fun 4.26 4.18 -0.08 Has a variety of hotels/price points 3.78 3.69 -0.09 Has luxurious resorts 4.38 4.28 -0.10 Has interesting cultural experiences 3.78 3.66 -0.11 Is an inclusive place 3.85 3.72 -0.13 Is a welcoming and friendly place 4.07 3.92 -0.15 Has small-town charm 3.94 3.66 -0.28 100 Vail & Sustainability •A positive finding is that the rating for how Vail is doing at protecting its natural resources is increasing over time. •Looking at people based on past visitation and when it occurred, there is a clear upward trend in the rating for protecting natural resources. •This suggests that visitors are noticing what Vail is doing, and that this is being reflected in the image of the destination. 37SMARInsights 4.52 4.33 4.27 4.11 3.86 Visited in 2022 Visited in 2021 Visited in 2020 Visited Prior to 2020 Never visited Rating for Protecting Natural Resources 101 Competitive Landscape •The review shows that Vail has a strong image –but so do many competitors. The next step is to determine what image to pursue, and how to create meaningful differentiation. •But looking at all these attribute ratings across all the competitive destinations can be quite confusing. And in reality, consumers don’t generally take the time to make this type of in-depth, detailed assessment about a destination. •Rather, they have a mental picture of a place that includes their perceptions about product, personality and competitors. •To better assess the overall image, perceptual mapping provides insights into consumers and their thought process. The process shows the relationship among the various attributes, as well as the relationship among the destinations. •The map is created by using discriminant analysis, which considers the ratings for all the destinations and highlights the position of each destination and key drivers of perceptions. The process means that ratings of destinations can both “pull” destinations to a specific location on the map and also “push” destinations away from ratings. •It is useful for understanding how to differentiate and how to better position Vail within the competitive context. 38SMARInsights 102 lots to see and do amazing scenery fun upscale outdoor activities unique friendly outdoor adventurequality attractions value food and wine families inclusive hotel variety luxurious resorts protects natural resources small-town charm appealing events safe outdoor winter activities welcoming to all unique food culture history Perceptual Map 39 Attributes at the top of the map relate to an upscale and luxurious destination Attributes at the bottom relate to a value, family friendly destination –that protects natural resources Attributes on the left of the map relate to a destination with culture and history Attributes on the right of the map relate to a destination with small town friendliness and charm SMARInsights 103 Perceptual Map •In overview, the map classifies the destinations from luxury to value and from unique culture to charm. •Vail is positioned in the quadrant defined by charm and luxury –along with Aspen. •Several competitors –Lake Tahoe, Park City, Whistler, Telluride and Jackson Hole –fall into the quadrant defined by charm and value. •Hawaii is the one destination in the quadrant defined by Luxury and unique culture. •The national parks (Zion and Yellowstone) are in the quadrant for value and unique culture. Protecting natural resources also defines this space. It is noteworthy that protecting natural resources is much more associated with a value destination and not with a luxury destination. 40SMARInsights lots to see and do amazing scenery fun upscale outdoor activitiesunique friendly outdoor adventurequality attractions value food and wine families inclusive hotel variety luxurious resorts protects natural resources small-town charm appealing events safe outdoor winter activities welcoming to all unique food culture history Vail Breckenridge Aspen Lake Tahoe Whistler Jackson Hole/Yellowstone St. George/Zion Hawaii Costa Rica Jackson Hole Park City Telluride Luxury Value CharmUnique Culture 104 Perceptual Map •The mapping process also allows a review of how different groups of consumers view the destination. •For Vail, those who are likely to visit give ratings that position the destination more toward the middle of the map, and lower in the right quadrant –while those who are unlikely to visit place it in the far upper right corner. Recent visitors also position Vail lower on the map, and a bit closer to the middle. •Comparing the ratings between the likely and unlikely highlights some of the areas where a higher rating would drive stronger interest. These include: —Is a good value for the money —Is an inclusive place —Is welcoming to all people —Has a variety of hotels/price points —Has interesting cultural experiences —Is a good place for families 41SMARInsights lots to see and do amazing scenery fun upscale outdoor activitiesunique friendly outdoor adventurequality attractions value food and wine families inclusive hotel variety luxurious resorts protects natural resources small-town charm appealing events safe outdoor winter activities welcoming to all unique food culture history Vail Breckenridge Aspen Lake Tahoe Whistler Jackson Hole/Yellowstone St. George/Zion Hawaii Costa Rica Jackson Hole Park City Telluride Unlikely to visit Likely to visit Luxury Value CharmUnique Culture Recent Visitors 105 Motivating Visitation 42SMARInsights •The positioning exercise highlights the current image and identified differences in the image between those who are likely to visit and those who are not. •Another analytical process involves identifying those image attributes that are most closely correlated to an increase in likelihood to visit. This exercise identified some of the same attributes: —Is a good value for the money —Is welcoming to all people —Is an inclusive place —Has interesting cultural experiences —Has a variety of hotels/price points —Is a unique vacation experience you can’t get at other places •The focus on protecting its natural resources is correlated to increased interest in visiting, but not as strongly as these o ther attributes. •For Vail, the challenge is that some of the messaging that is linked to higher likelihood to visit will dilute its current im age and provide less differentiation compared to much of the competition. The upscale image is differentiating and moving away from that image is not necessarily the right option. 106 Motivating Visitation 43SMARInsights •Among sustainable travelers is a different set of messages that are linked to increased interest in visiting – although there is significant overlap. Protecting natural resources is important to this segment –although being inclusive and welcoming are stronger motivators: —Is an inclusive place —Is a good place for families —Is welcoming to all people —Has high quality attractions —Has appealing events —Is a unique vacation experience you can’t get in other places —Is doing a good job protecting its natural resources •By promoting the image of a charming, upscale destination that is also welcoming and inclusive –and focused on sustainability, Vail has the opportunity to improve its competitive position, while still maintaining differentiation from key competitors. 107 Competitive Image -Insights •Vail has a strong image as an upscale resort destination with amazing scenery and lots of outdoor activities. While its image is strong, the competitive destinations also have strong images –making it challenging to create differentiation. •Currently Vail is not given a great deal of credit for its sustainability efforts, and this is not a point of differentiation. •Considering the competitive landscape, consumers differentiate between luxury vs. value and charm vs. unique culture: —Vail and Aspen are in the luxury/charm quadrant —Hawaii is in the luxury/unique culture quadrant —National parks & Costa Rica are in the value/unique culture quadrant —Breckenridge, Whistler, Park City, Telluride, Lake Tahoe and Jackson Hole are all in the value/charm quadrant •Sustainability (protecting natural resources) is less associated with luxury destinations, and more associated with value. •Recent visitors to Vail and those who are likely to visit characterize Vail as more of a balance between luxury and value. This suggests that reinforcing those perceptions will improve the image and increase interest in visiting. 44SMARInsights 108 Competitive Image -Insights To attract more sustainable travelers, the focus should be on these key messages: •Vail… —Is an inclusive place —Is a good place for families —Is welcoming to all people —Has high quality attractions —Has appealing events —Is a unique vacation experience you can’t get in other places —Is doing a good job protecting its natural resources. •This represents a strong strategy, because by promoting the image of a charming, upscale destination that is also welcoming and inclusive –and focused on sustainability, Vail has the opportunity to improve its competitive position, while still maintaining differentiation from key competitors. This positioning capitalizes on the current strengths, while creating more interest in future visitation. 45SMARInsights 109 Appendix: Trip Types 46SMARInsights 110 Trip Type Overview •Outdoor adventure travelers are younger, less affluent, and less educated. •Summer mountain travelers are less affluent and less educated. •Luxury resort travelers are older, more affluent, and more educated. •Winter mountain travelers are younger and more educated and a mix of income. 47SMARInsights 36% 27%28% 21% Outdoor adventure trip Summer trip to a mountain destination Luxury resort experience Winter trip to a mountain destination Take Trip Type Every Year Age Take outdoor adventure trip every year Take summer trip to a mountain destination every year Take luxury resort experience trip every year Take winter trip to a mountain destination every year 18-34 36%35%28%36% 35-54 45%47%51%47% 55+19%18%21%17% Income $75,000 but less than $100,000 7%6%5%9% $100,000 but less than $150,000 55%56%48%50% $150,000 but less than $250,000 26%25%28%24% $250,000 or more 13%12%18%17% Education High school or less 4%3%2%2% Some college/technical school 14%13%11%7% College graduate 48%48%49%52% Post-graduate degree 35%36%38%38% Below average across groups Average across groups Above average across groups 111 Outdoor Adventure Trip Motivators •Beautiful scenery, inclusivity, national parks, adventure, and hiking are what motivate outdoor adventure trips and differentiate this type of trip from the other trip types evaluated (summer mountain, luxury resort, and winter mountain). •The destination’s commitment to sustainability is not as important overall, and less important than for other types of trips. 48SMARInsights Outdoor adventure trip Trip Characteristic is Very Much Motivating Index Across Trip Types Beautiful scenery 83%102 Destination that is welcoming to everyone 71%103 National parks and other outdoor options 63%110 A lot of culture and history 53%97 Amazing food and wine options 53%86 Attractions for kids and the family 44%98 Outdoor adventure opportunities like biking, ziplining etc.41%109 Hiking 41%104 Intimate inns and romantic experiences 34%92 Availability of package travel options 34%84 Romantic settings 32%81 Shopping 30%74 Health/wellness and rejuvenation 29%80 A destination’s commitment to sustainability 26%87 World-class resorts 23%57 Fun nightlife 22%72 Availability of cannabis 9%59 Below average in column Average in column Above average in column 112 Summer Mountain Trip Motivators •Scenery and national parks top the list for summer mountain trips –along with being welcoming to everyone. •Features that are more important for this type of trip include hiking, attractions for family and kids, outdoor adventure opportunities and the availability of cannabis. •This group also indicates that the destination’s commitment to sustainability is more important for this trip type. 49SMARInsights Summer trip to a mountain destination Trip Characteristic is Very Much Motivating Index Across Trip Types Beautiful scenery 85%105 Destination that is welcoming to everyone 65%95 National parks and other outdoor options 65%114 A lot of culture and history 59%108 Amazing food and wine options 59%95 Hiking 47%121 Attractions for kids and the family 46%105 Romantic settings 40%100 Outdoor adventure opportunities like biking, ziplining etc.40%106 Shopping 39%98 Availability of package travel options 39%98 Health/wellness and rejuvenation 38%104 Intimate inns and romantic experiences 35%95 A destination’s commitment to sustainability 35%115 World-class resorts 35%86 Fun nightlife 30%100 Availability of cannabis 16%107 Below average in column Average in column Above average in column 113 Luxury Resort Experience Motivators •While beautiful scenery is important for this type of trip –it is less important than for other types. •The factors that motivate this group are amazing food and wine, world-class resorts, package travel options, shopping and romantic settings. •There is significantly less interest in the destinations’ commitment to sustainability among this audience. 50SMARInsights Luxury resort experience Trip Characteristic is Very Much Motivating Index Across Trip Types Beautiful scenery 79%98 Destination that is welcoming to everyone 70%102 Amazing food and wine options 69%110 World-class resorts 55%137 A lot of culture and history 49%89 Availability of package travel options 44%109 Shopping 43%108 Romantic settings 42%107 Intimate inns and romantic experiences 38%103 Attractions for kids and the family 36%82 National parks and other outdoor options 35%62 Health/wellness and rejuvenation 33%90 Fun nightlife 29%96 A destination’s commitment to sustainability 22%73 Outdoor adventure opportunities like biking, ziplining etc.21%55 Hiking 20%51 Availability of cannabis 10%69 Below average in column Average in column Above average in column 114 Winter Mountain Trip Motivators •For those taking winter mountain trips, scenery and being welcome are important –but less so than for other trip types. •Everything else is more important – indicating that people taking this type of trip want it all. •Some of the features that are significantly more important to this audience are outdoor adventure, world- class resorts, health/wellness, nightlife and the availability of cannabis. •This is the segment that puts the strongest priority on a destination’s commitment to sustainability (among the four trip types). 51SMARInsights Winter trip to a mountain destination Trip Characteristic is Very Much Motivating Index Across Trip Types Beautiful scenery 78%95 Destination that is welcoming to everyone 68%99 Amazing food and wine options 68%109 National parks and other outdoor options 64%113 A lot of culture and history 58%106 Attractions for kids and the family 51%115 Outdoor adventure opportunities like biking, ziplining etc.49%130 Hiking 49%124 World-class resorts 48%120 Shopping 48%119 Health/wellness and rejuvenation 46%126 Romantic settings 44%112 Availability of package travel options 44%109 Intimate inns and romantic experiences 41%110 Fun nightlife 40%132 A destination’s commitment to sustainability 38%124 Availability of cannabis 24%166 Below average in column Average in column Above average in column 115 Appendix: Questionnaire 52SMARInsights 116 Questionnaire 53SMARInsights 117 Questionnaire 54SMARInsights 118 Questionnaire 55SMARInsights 119 AGENDA ITEM NO. 1.3 Item Cover Page DATE:December 6, 2022 TIME:45 min. SUBMITTED BY:Greg Hall, Public Works ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:Residences at Main Vail Operations Policy SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Kathleen Halloran, Deputy Town Manager, George Ruther, Housing Director and Greg Hall, Public Works and Transportation Director VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: RMV Policy memo.pdf 120 TO: Vail Town Council FROM: Residences at Main Vail (RMV) Operating Committee DATE: December 6, 2022 SUBJECT: Residences at Main Vail Operations I. SUMMARY The purpose of this memorandum is to present various policy questions that will impact the operations for the upcoming Residences at Main Vail development. There are three areas of focus for this discussion: property management, buying down a number of units for TOV employees, deed restriction terms, rental rates, parking and pet policies, branding/marketing and occupancy incentives. II. BACKGROUND The Town of Vail is constructing a 100% deed-restricted, for-rent, residential development on Lot 3, Middle Creek Subdivision with occupancy by August 1, 2023. The Town’s sole objective of the 72-unit Residences of Main Vail Project is to advance, in part, the Town’s adopted housing goal of acquiring 1,000 additional deed restrictions by the year 2027. Below is a series of policy questions and operational recommendations by the operating committee for Town Council’s consideration that will help to shape the financial pro-forma for the property and housing policies. II. DISCUSSION Property Management The town will hire a property management company to oversee all areas of operations, including leasing and collections activity, annual budgeting and financial reports, maintenance and cleaning, snow removal, etc. for Residences at Main Vail. The term of this0 property management agreement would be for a period of five years with an automatic annual renewal. Early in the process, Triumph Development was identified as the property management provider in the Pre-Development Agreement. However, that term was not included in the final Development Agreement. The operating committee recommends conducting an RFP for the services, understanding that Triumph would have an advantage in bidding given an understanding of the building construction. With new units available for rent beginning August 1, 2023, a leasing agent should be in place 6 months prior, or by March 1st. Staff recommends proceeding with a Request for Proposals by early January to afford enough time for contract negotiations and council approval. Does Town Council agree with the RFP process suggested? 121 Town of Vail Page 2 Allocation of Units for Town of Vail Employees Town Council has supported the accumulation of more units through purchase and master leasing to provide rental opportunities for Town of Vail employees. The town currently owns approximately 85 rental units and master leases a 3-bedroom unit in Vail. There are numerous benefits to having our employees live in Vail, both to the organization and to the community overall. Staff proposes “buying-down” approximately 10% of the property, or 7 – 10 units at Residences at Main Vail for Town of Vail employees. The “buy-down” would be funded by the Capital Projects Fund. Deed Restriction Terms The Town of Vail will be placing deed restrictions on 100% on this rental property. The operating committee recommends the following deed restriction terms: • Tiered leasing preferences to include a top tier for employees working in the Town of Vail, followed by employers with business licenses in the Town of Vail, with a third tier of essential service positions such as healthcare, emergency services, first responders, teachers, utility providers, etc. and a fourth tier for persons working within Eagle County but outside the Town of Vail. • All residents will be required to comply with the 30 hour per week employment obligation at an employer physically located in Eagle County and 75% of gross income earned within the county. Operating Policies The below operating policies represent the current direction taken by the RMV Operating Committee: Parking: The Residences at Main Vail will have a total of 82 parking spaces including ADA and electric-charging locations. The parking is also tandem, which will require coordination from residents and/or roommates. With 72 units, the town anticipates approximately 144 residents. That equates to .57 parking spaces per resident, an intentional design element based on proximity to transportation and to the village core areas. With limited parking availability, the operating committee is recommending a parking fee be charged to residents wanting a parking space. The fee amount will be determined based on current market prices in the local rental arena. Storage: Each unit comes with a designated locked storage area outside. The committee does not recommend additional charge for storage. Pets: The operating committee recommends allowing for pets, with an additional fee and security deposit. The fee amount will be determined based on current market prices in the local rental arena. Utilities: Included in the operational analysis is the assumption that water/sewer/trash are included within the rent but electricity has been separately metered for each unit so that would be paid by the tenants directly. 122 Town of Vail Page 3 Rental Rates: Rental rates vary throughout Vail and outlying areas, but below is a sampling of similar product types for comparison purposes. Timber Ridge LionsRidge Piedmont Middle Creek (low income) Kayak Crossing 6 West Studio $2,097 $1,140 1bd / 1ba $1,736 $2,904 $1,222 $1,875 2bd / 1ba $1,649 $3,084 $1,465 $2,500 2bd / 2ba $2,350 $3084 $1,465 $1,800 $2,500 3bd / 2ba $4011 $3,200 $2,100 $3,300 The rental rates recommended by the committee will generate enough revenue to effectively operate the property and in later years, produce additional funds for future housing initiatives and programs. By ensuring that all future development of below-market rate properties are revenue-generating, Vail can build a growing pot of resources, not only to maintain and improve existing inventory but to build more homes and buy more deed restrictions. For example, the Town of Vail's Timber Ridge Apartments, while offering some of the lowest rents in Eagle County, presently spins off an average of $250K in net revenue annually. The Residences at Main Vail should show positive cash flow soon after opening in fall 2023. The operating committee has recommended starting rents at a range that lands in-between top-end market and lower-end market for similar products. The following starting rents for August, 2023 are below: Residences at Main Vail unit type Proposed Rental Range 1bd / 1ba $1,750 - $2,000 2bd / 1ba $2,100 - $2,200 2bd / 2ba $2,250 - $2,400 These rents are considered “affordable” based on a baseline of 33% of gross wages for housing expenses for the sample list of professions below: Annual income needed Examples of Professions 1bd/1ba @ $1,750/mo $63,000 Single-income: -Code Enforcement Officer -Dispatcher -Heavy Equipment Operator II -Nurse Dual income: -Parking attendant + Maintenance worker -Teacher + Library associate 123 Town of Vail Page 4 - 2 Vail Lift operators 2bd/1ba @ $2,100/mo $75,600 Single-income: -Journey Electrician, Mechanic, Welder -Construction or Building Inspector -Maintenance Supervisor -HR Professional -Planner I -Firefighter Dual income: -Accounting technician + Heavy Equip Op I -Bus Driver + Welcome Center Assistant -Parking attendant + Maintenance worker 2bd/2ba @ $2,250/mo $81,000 Single-income: -Office Manager -Engineer 1 -Police Officer Dual income: - Accounting technician + Heavy Equip Op I -Irrigation technician + Bus Driver -Admin technician + Landscape Lead - 3 Vail Lift operators / ski instructors Below is some additional background information that was used in considering appropriate rental rates for Residences at Main Vail: • Construction of the Residences at Main Vail project is currently budgeted at $30.6 million and funded mainly by a $25M debt obligation over 30 years at an interest rate of 2.7%. The annual debt service payments are covered by rental income once the project is operational. • Capital Projects Fund reserves will be used to provide $5.0 million in financing of construction costs beyond the $25.0 million in bond proceeds. Capital Project Fund reserves will also finance another $2.7 million for initial debt service payments and operations before the project is earning rental income. Staff has assumed an interest-free repayment of the $7.7M covered by the Capital Projects Fund. • As an independent “enterprise fund” for the Town of Vail, the Residences at Main Vail should be self-funded with net income each year to build a reasonable fund balance. • If excess reserves accumulate beyond capital plan needs, those funds can be used for other housing programs and initiatives. 124 Town of Vail Page 5 Other Policies • Occupancy Incentives While occupancy impacts “wear and tear” on rental units, the operating committee is researching ways to incentivize maximizing occupancy in the Residences at Main Vail units. Does Town Council support leases that include occupancy incentives? • Property Signage and Branding As a Town of Vail owned property, the operating committee recommends a monument sign that includes “Residences at Main Vail” in larger font, then “by Town of Vail” or “Vail Home Partners” in smaller font. The same logo would be included in the branding for leasing materials, marketing and internal signage. Does Town Council support acknowledging “Town of Vail” in signage and marketing materials? II. ACTION REQUESTED OF COUNCIL Please provide direction for staff on the above items as we move closer to the opening of the Residences at Main Vail. 125 AGENDA ITEM NO. 2.1 Item Cover Page DATE:December 6, 2022 SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:Community Lottery Information SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: FLYER_Vail Heights 10 11252022 (3).pdf 126 ABOUT THE HOME 2059 Chamonix Lane Unit 10 1-bedroom, 1-bath, 552+/-square-foot condominium. A beautiful Vail home especially for local residents is available and back on the market! Not only does this West Vail residence offer a prime location, this home offers comfort inside and a fun outdoor space. This 1-bedroom home is being sold unfurnished. Vaulted ceilings, quality kitchen appliances, wood burning fireplace and comfortable breakfast bar for three are all loved features of this home. The condo is conveniently located on the bus line, with easy access to Vail Mountain and walking distance to grocery stores, shops, and restaurants. Within the shared owner space in the building, includes a code entry, in-washer/dryer, homeowner storage closet and space to store your bikes or toys. One assigned parking space. The deed-restricted home is being offered for sale at $419,000 HOA Dues –Monthly dues are currently $300, which covers water and sewer, trash collection, building insurance, snow removal and heat. OPEN HOUSES 4 –6 p.m. on Monday, Dec. 5 11 a.m. –1 p.m. on Tuesday, Dec. 6 THE LOTTERY A home buyer selection lottery is planned for 9 a.m. on Friday, Dec. 23. Hybrid in- person and on Zoom. HOMEBUYER CLASS REQUIRED See current listings page for this and other requirements needed prior to submitting your application. To see if you qualify, visit vailgov.com/currentlistings Applications due before 9 a.m., Monday, December 19 VAIL HEIGHTS CONDO AVAILABLE OFFERED AT $419,000 Please contact us with questions George Ruther | Housing Director 970.376.2675 housing@vailgov.com 127 AGENDA ITEM NO. 2.2 Item Cover Page DATE:December 6, 2022 SUBMITTED BY:Beth Markham, Environmental Sustainability ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:E-Bike Share Info Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: E-Bike Share Info Update Memo 120622.pdf 128 To: Vail Town Council From: Environmental Sustainability Department Date: December 6, 2022 Subject: Shift Bike – E-Bike Share Information Update I. Purpose This memorandum and information update provides additional information requested by the Vail Town Council on the Shift Bike regional electric bike share program following the end of season update during the November 15, 2022 meeting. II. Shift Bike Data The first year of the Shift Bike program was well used and exceeded expectations from the partner communities and contracted vendor, Drop Mobility. Between June 7 and October 31, there were a total of 7,393 trips taken on Shift Bikes distancing 21,735.4 miles. This has reduced 8.68 metric tons of greenhouse gas emissions. This is the equivalent of reducing nearly 1,000 gallons of gasoline. The average distance of rides was 2.94 miles and average duration of rides was 30.1 minutes. This indicates the system was used how it was intended, which is for shorter commuting trips to get around in and between the partner communities. Additional data can be found in Appendix A. III. Bike Share Comparison in Mountain Communities Council requested staff provide cost per ride comparisons with other communities that offer bike share programs. After reaching out to several e-bike share operations, the feedback received was cost per ride is not an appropriate metric to utilize when evaluating program success given that the overall cost includes everything from the hardware (e-bikes, racks, batteries, tools, etc), software (website, mobile app), operations (staff, maintenance, repairs, re-balancing, cleaning, etc.), warehouse space, off season storage, marketing, administration, customer service, and all logistics. Most systems gauge success on: • Increase in ridership and memberships year over year • Increase trips and mileage year over year • User feedback While the communities and bike share programs contacted did not have the cost per ride number readily available, two programs in similar mountain communities- Summit Bike Share and We-Cycle Bike Share, were able to provide recent data as well as data from their inaugural years that could be used to determine a rough cost per ride given the council request. Please note that all three systems operate differently, so comparisons may not be exact. 129 Town of Vail Page 2 Summit Bike Share (Summit County, UT) has been in operation since 2017. The Summit Bike Share system has grown to 190 e-bikes and 20 stations throughout their service area. They purchased the infrastructure of e-bikes and dual docking/charging stations rather than lease the infrastructure. From 2017-2020 they spent $1.3 million on infrastructure, a portion of which was grant funded. Their annual operating contract with their provider, Bewegen Technologies, to run the system from May-November is $250,000. Because they purchased their e-bikes and infrastructure, the cost is not included in their annual operation contract. In 2022, Summit Bike Share has logged 81,500 miles over 21,000 trips. The 2022 cost per ride comes out to $11.90/ride, which does not factor in cost of infrastructure. However, in 2017 when the system launched, Summit Bike Share had 90 e-bikes and 9 stations that logged 5,000 trips and about 19,000 miles. The initial year’s cost, including infrastructure, was about $325,000, which equates to $65/ride. We-Cycle Bike Share in the Roaring Fork Valley has been in operation since 2013. It is a 501(c)3 and operates as a public private partnership. We-Cycle operates all aspects of the bike share system in Aspen, Snowmass, and Basalt. Based on the 2021 Annual Report, We-Cycle had 51 stations and a fleet of 253 bikes in the system, which include 26 e-bikes. The rest are traditional pedal bikes. In 2021 they logged 60,000 miles over 50,570 trips (average trip distance was 1.18 miles). The 2021 expenditures totaled $717,160 which equates to $14.18/ride. Sixty-two percent of their funding comes from public investment, 29% is from private investment and 9% is from other revenue such as grants and operating revenue. In its inaugural year of 2013, We-Cycle infrastructure and operating budget was $500,000 which included 100 bikes and 13 stations. The system logged 10,000 trips, which equates to $50/ride. As demonstrated by the examples above, as bike share systems increase in size, costs should decrease over time with economies of scale. The inaugural year of the Shift Bike system cost Town of Vail, Town of Avon and EagleVail Metro District $249,200, including infrastructure, software, and all operations, including administration, marketing and customer service. The cost per ride was roughly $33.70, which is significantly less than both Summit Bike Share and We-Cycle in their first year of operation. Given that Shift Bike was in its first year of operation, it is likely to see increases in ridership in 2023, especially given the proposed system expansion, leading to reduced cost per ride numbers. III. Shift Bike Expansion 2023 Since the last council presentation, staff has been working with the partner communities to on system expansion for 2023. Projected expansions are detailed in the chart below with a comparison to 2022. Numbers for 2023 are contingent on final budget appropriations in each community and a final proposal from Drop Mobility. 130 Town of Vail Page 3 Community 2022 Contribution 2022 # of e- bikes 2022 # of Stations 2023 Contribution 2023 # of e- bikes 2023 # of stations Town of Vail $174,440 (70%) 63 12 $225,000 (51.3%) 80 16 Town of Avon $49,840 (20%) 18 6 $100,000 (22.8%) 30 9 EagleVail Metro $24,920 (10%) 9 2 $39,000 (9%) 15 3 Eagle County X X X $50,000 (11.4%) 20 - 24 4 or 5 Edwards Metro X X X $25,000 (5.7%) Total $249,200 90 20 $439,000 149 - 154 32 or 33 Staff is collaborating with Eagle County to apply for the Strategic Transportation Demand Management Innovation grant through the Colorado Department of Transportation to help offset the cost of expansion in each partner community. The grant application will be submitted December 9, 2022 and the award amount is up to $50,000. In addition, Drop Mobility has started developing a sponsorship packet to solicit and secure local sponsors to help offset the cost of the system in 2023 as well. Town of Vail Expansion: During the last council update, staff requested 4 additional locations for hub stations with 15-20 additional Shift Bikes for expansion in Vail. After council discussion, staff is still considering station locations near Glacier Court and Timber Ridge while also vetting additional options with proximity to workforce housing, neighborhoods with first-last mile challenges, and locations near popular trailheads. Suggestions include Middle Creek to serve additional workforce housing, near the Valley HOA to add first-last mile solution higher on Buffehr Creek Rd., potentially at the Pitkin Creek Trailhead, or a location higher in the Matterhorn neighborhood. Two of these options will replace the previous suggestions of the Buffehr Creek Bus Stop and the Town Municipal building and staff will seek input from council as locations are vetted. Because the US Forest Service owns the parking lot at the Gore Creek and Deluge Trailheads IV. Staff Recommendations Given the success of the regional Shift Bike share system in 2022, staff recommends supporting expansion in 2023 to increase micro-mobility opportunities, continue building a culture of bike commuting, and reduce parking congestion, vehicle miles traveled and related greenhouse gas emissions. 131 Town of Vail Page 4 Appendix A- Additional Data from 2022 Shift Bike Operations • 3,486 Shift Bike app downloads • 2,582 Pay as You Go riders, • 336 monthly memberships purchased • 16 season pass memberships purchased • 2 equity program participants • 99 employee/staff memberships activated Sixty one percent of all trips were Pay As You Go trips and 38.4% of trips were taken by locals only memberships. The breakdown of trips taken per membership type can be found in Figure 2. Membership Type Trips Percent of Total Pay As You Go 4552 61.6 Monthly pass member 2065 27.9 Seasonal pass member 397 5.4 Special pass member 375 5.0 Equity pass member 4 0.1 TOTAL 7,393 100 Figure 2: Trips taken by membership type. Of all of the trips taken, 65.8% took place within Vail and 6.17% were interregional trips, which is depicted in Figure 3. The Vail Village Parking Structure, Lionshead Transit Center, Simba Run Bus Stop, West Vail Mall Bus Stop and Vail Public Library parking lot were the stations that the most trips originated from. The full breakdown of number of trips that originated from each station can be found in Figure 4. Trips by Region Trips Percent of Total Trips Within Vail 4863 65.78 Within Avon/EagleVail 1803 24.39 Inter Region 456 6.17 Unknown Location 271 3.67 Figure 3: Trip breakdown by region Hub Station Trips (starting at station) Vail Village Parking Structure 1242 Lionshead Transit Center 515 Simba Run Bus Stop 504 West Vail Mall Bus Stop 479 Vail Library Parking Area 468 Pitkin Creek Bus Stop 392 132 Town of Vail Page 5 Avon Station 369 ANB Bank 349 Intermountain Park 340 The Aspens 337 Avon Recreation Center 304 Ford Park 300 Ellefson Park 290 Bighorn Park 289 River Run 282 Donovan Pavilion 260 Pavilion Park 213 Outside of Hub 179 Harry A. Nottingham Park 143 Booth Lake Trailhead 78 O'Neal Spur Park 59 Avon Bus 1 Total Trips 7,393 Figure 4: Number of trips starting per Hub Station Projected Revenue Drop Mobility is working on final financial statements; however, preliminary net revenue for the Shift Bike system is $43,700. Per the initial contract, Drop will receive 90% ($39,330) of the revenue and 10% ($4,370) will be reinvested into marketing and outreach for the Shift Bike system in 2023. Drop Mobility issued $1,470 in refunds to users. Shift Bike Feedback Overall feedback of the program and system was positive. A few themes include: • Ease of Use: Bikes are easy to unlock and use and it is a fun way to get around. • Availability: Bikes with adequate battery life are readily available at hub stations • Improved Commute: Shift Bikes are a great way to commute around town efficiently and without worrying about locking up personal bike when running errands or going to work. • Great Transportation Alternative: Shift Bike provided transportation method when personal vehicles are not an option. Direct Quotes: • “My commute is so awesome now!!! I've taken the bike yesterday and today...easy to unlock/lock, easy to ride, so so so awesome!!! It does appear others are using them as well, as each time I've un-docked and/or docked there are a different number of bikes at the stations. What a win for the Town of Vail.” - Vail full time resident • “Shift Bike saved me getting to and from work when my car broke down. Great asset to the community!” -Vail employee 133 Town of Vail Page 6 • “Absolutely wonderful that we have this program! Thank you @vailgov and #shiftyourride! Used one the bikes to do my grocery shopping and it worked like a charm!” -Vail resident and employee • “I love this program! I think the shared e-bike program is a great addition to Vail and I'm glad to see the town doing it with Avon and Eagle Vail.” -Vail resident • “The Shift Bike program is awesome! I used it often with friends to ride from EagleVail to go to concerts at the amphitheater in Vail and even out to East Vail. The bikes were fun and great to use instead of driving!” -EagleVail resident Constructive Feedback • Improve Website and Mobile App: Add a map to the Shift Bike website indicating hub station locations, e-bike availability, and battery life, and improve instructions for unlocking bikes on the mobile app. • Add Station Locations: There were recommendations for additional hub locations in Minturn, Edwards, and Vail, including Glacier Ct, Timber Ridge, Lionsridge, Mayor’s Park, and the Municipal Building. Adding stations without increasing the number of bikes would have spread the system too thin, but these additions will be taken into consideration for 2023. Discussions are underway with Edwards Metro District and Eagle County to add station in Edwards for 2023. Town of Minturn is opting to wait until the bike path construction is completed and will consider joining in 2024. • Pricing: There were a few complaints that the Pay as You Go cost to use Shift Bikes is too expensive. A couple of requests to set a membership price for senior citizens comparable to the cost of Eco-transit passes were also received. • Improper Docking: Staff received three calls throughout the duration of the program that Shift Bikes were improperly docked outside of different hotels or locations that were not hub stations. When staff contacted the local operations team, they quickly picked up the bikes. • Safety: Try to keep the stations as close to the bike path to improve safety of system and be mindful of safety with stations on the Frontage Rd. and at transit center. • Bikes Features: Several requests were received to increase the basket size, improve ability to carry groceries and improve the brakes. • Reduce Idling: A community member observed the operations team idling their vehicle when redistributing bikes to a station in Vail. After a reminder of the town idling policy, they agreed to ensure they would not idle their vehicle when in use. 134 AGENDA ITEM NO. 2.3 Item Cover Page DATE:December 6, 2022 SUBMITTED BY:Jeremy Gross, Economic Development ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:CSE Meeting Minutes 11/02/2022 SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: commission-of-special-events_minutes_summary__7_.pdf 135 Present:Douglas Smith Alison Wadey Kim Newbury Rediker Absent:Nick Conover Marco Valenti 1.Event Previews 1.a Event Preview - Vail Film Festival Time: 10 Min Event has been converted to 100% virtual due to COVID concerns. Event will not take and CSE funding for 2022. 2.Event Recaps Time: 10 Min 2.a Vail Cup Recap Time: 10 Min 2.b Bravo Vail Time: 10 Min 2.c Vail Farmers Market Event Recap Time: 10 Min 2.d Farm to Table Event Recap Committee on Special Events Minutes Wednesday, November 2, 2022 8:30 AM VAIL TOWN COUNCIL CHAMBERS Vail Cup Recap.pdf VailCup2022detailedbudget.xlsx Surveymonkeysummaryresponses2022.pdf Responses2022VailCupSurveyMonkey.pdf Kim Newbury Rediker made a motion to Release final funding for the Vail Cup.; Douglas Smith seconded the motion Passed (3 - 0). BravoVail CRC 2022 Recap Presentation and Supplemental Materials.pdf Kim Newbury Rediker made a motion to Release final funding for the Bravo! Vail Music Festival.; Douglas Smith seconded the motion Passed (3 - 0). Vail Farmers’ Market & Art Show Wrapup 2022-2.pdf 2022Event Budget TemplateVFM-2.xlsx Kim Newbury Rediker made a motion to Release final funding for the Vail Farmers Market and Art Show.; Douglas Smith seconded the motion Passed (3 - 0). 1 Committee on Special Events Meeting Minutes of November 2, 2022 136 Time: 10 Min 2.e Vail Oktoberfest Recap Time: 10 Min 2.f Vail Craft Beer Recap Time: 10 Min 2.g Vail Wine Classic Recap 3.Meeting Reports 4.Approval of the Minutes 4.a Minutes from October Regular Meeting 5.Information Update 5.a Monthly occupancy and sales tax reports. 6.New Business 6.a Mountain Ideal Learning Series Vail Farmers’ Market Farm to Table Wrap-Up 2022.pdf 2022 RFP Event Budget TemplateFarmtotable-3.xlsx Kim Newbury Rediker made a motion to Release final funding for the Vail Farmers Market Farm To Table Dinner. ; Douglas Smith seconded the motion Passed (3 - 0). TOV Recap OKT 2022.pdf 2022 RFP Event Budget_Oktoberfest_Recap v2.xlsx Kim Newbury Rediker made a motion to Release final funding for Vail Oktoberfest.; Douglas Smith seconded the motion Passed (3 - 0). TOV Recap VCBC 2022.pdf 2022 Vail Craft Beer Classic Town Budget Recap FINAL.xlsx Douglas Smith made a motion to Release final funding for the Vail Craft Beer Classic.; Kim Newbury Rediker seconded the motion Passed (3 - 0). TOV Recap VWC 2022.pdf Vail Wine Classic RFP Budget 2022 FINAL.xlsx Douglas Smith made a motion to Release final funding for the Vail Wine Classic.; Kim Newbury Rediker seconded the motion Passed (3 - 0). Meeting Minutes CSE October 5.pdf Kim Newbury Rediker made a motion to Approve the minutes from ; Douglas Smith seconded the motion (3 - 0). Vail_Production_Notes_10-15-2022.pdf Vail Custom DOR 10.15.22.pdf Vail_Retail_Report_2022-10-15.pdf Vail Taxable Sales Report thru 2022-08-31.pdf 2 Committee on Special Events Meeting Minutes of November 2, 2022 137 7.Adjournment MILS Announcement 1.png 2022 Mountain IDEAL Learning Sessions Agenda.pdf MILS Announcement 2.png MILS Guest Speaker Session_1.png MILS Guest Speaker Session_2.png 3 Committee on Special Events Meeting Minutes of November 2, 2022 138 AGENDA ITEM NO. 2.4 Item Cover Page DATE:December 6, 2022 SUBMITTED BY:Stephanie Bibbens, Finance ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:November Revenue Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 221206_Revenue_Updates.pdf 139 TOWN OF VAIL REVENUE UPDATE December 6, 2022 Sales Tax Upon receipt of all sales tax returns, October collections are estimated to be $1,718,251 down (1.0)% from last year and down (1.0)% from amended budget. Year to date collections of $33,228,024 are up 23.5% from 2021 and up 39.9% from 2019. Compared to amended budget, year to date collections are up 1.9%. Inflation as measured by the consumer price index was up 6.3% for October. The annual amended budget totals $39.9 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, October collections of the 0.5% housing fund sales tax are estimated to be $190,980 and YTD total collections are estimated to be $4,031,817. The 2022 amended budget for the housing fund sales tax totals $4.8 million. Real Estate Transfer Tax (RETT) RETT collections through November 29 total $9,315,033 down (19.5)% from this time last year and up 4.2% from this time in 2019. The 2022 amended RETT budget totals $9.7 million. Construction Use Tax Use Tax collections through November 29 total $1,926,017 compared to $3,525,642 from this time last year. The 2022 amended budget totals $1,965,000. 2021 construction use tax was significantly higher due to several large residential projects and construction of the new Marriott Residence Inn. Lift Tax 2022 YTD Lift tax collections total $5,168,789 up 17.6% or $771,947 from the same time last year. Parking Passes Early season parking pass sale revenue through November 29 totals $1,135,220 up 12.9% or $130,133 from this time last year. A total of 3,161 passes have been sold this year. A detailed breakout of 2022/23 passes sold by type is provided in the chart below. Premier 18    Vail Village Business Premier 62    Lionshead Business Premier 11    Employee 394    Employee  Plus 335    Eagle  County Local 1,199   Vail Local 1,142   Total 3,161   140 Summary Across all funds, year-to-date total revenue of $76.8 million is up 0.9% from amended budget and 7.4% from prior year. Excluding the new 0.5% housing fund sales tax, total revenue is up 1.8% comparted to prior year. 141 2022Budget % change % change % change 2017201820192020Amended BudgetVariance from 2021 from 2019 from BudgetJanuary3,725,212$ 3,597,610$ 4,079,994$ 4,076,145$ 3,422,209$ 5,202,457$ 5,209,967$ 7,510$ 52.24% 27.70% 0.14%February3,692,592 3,818,356 4,137,087 4,285,633 3,691,850 5,670,176 5,676,619$ 6,443 53.76% 37.21% 0.11%March3,642,407 4,167,880 4,237,933 2,243,518 4,364,797 5,905,456 5,943,675$ 38,219 36.17% 40.25% 0.65%April1,386,780 1,233,474 1,445,071 427,518 1,751,528 2,108,005 2,226,924$ 118,919 27.14% 54.10% 5.64%May659,475 830,193 763,756 503,828 1,061,516 1,112,035 1,224,819$ 112,784 15.38% 60.37% 10.14%June1,389,982 1,648,443 1,606,748 1,023,517 2,149,312 2,149,300 2,310,768$ 161,468 7.51% 43.82% 7.51%July2,215,649 2,412,425 2,480,292 2,084,644 3,491,668 3,491,700 3,498,984$ 7,284 0.21% 41.07% 0.21%August1,863,949 2,195,175 2,237,050 2,138,838 2,877,550 2,877,600 2,989,415$ 111,815 3.89% 33.63% 3.89%September 1,385,462 1,540,490 1,600,100 1,767,393 2,359,528 2,359,500 2,428,602$ 69,102 2.93% 51.78% 2.93%October936,954 1,106,596 1,165,176 1,371,727 1,734,964 1,735,000 1,718,251$ (16,749) -0.96% 47.47% -0.97%YTD Total20,898,462$ 22,550,642$ 23,753,206$ 19,922,761$ 26,904,921$ 32,611,229$ 33,228,024$ 616,795$ 23.50% 39.89% 1.89%November997,716 1,264,600 1,260,314 1,425,461 1,880,397 1,880,400 December 3,695,305 4,070,870 4,237,178 3,625,189 5,749,365 5,458,371 Total25,591,483$ 27,886,112$ 29,250,698$ 24,973,411$ 34,534,683$ 39,950,000$ 33,228,024$ 2022Budget% change Amended BudgetVariance from BudgetJanuary643,700$ 644,592$ 892$ 0.14%February700,700 701,484 784 0.11%March721,900 723,669 1,769 0.25%April260,300 268,096 7,796 3.00%May146,400 146,262 (138) -0.09%June280,000 279,582 (418) -0.15%July420,000 423,495 3,495 0.83%August360,000 360,168 168 0.05%September290,000 293,486 3,486 1.20%October190,000 190,980 980 0.52%YTD Total4,013,000$ 4,031,816$ 18,816$ 0.47%November200,000 December600,000 Total4,813,000$ 4,031,816$ 0.5% Collected Sales Tax0.5% HOUSING SALES TAX COLLECTIONSBalanceActual Collections4.0% Collected Sales Tax2021Town of Vail Revenue UpdateDecember 6, 20224.0% SALES TAX2022 Budget Comparison142 Town of Vail Revenue Update December 6, 2022 YTD 4% Sales Tax Collections By Year Through October 31 October 4% Sales Tax Collections By Year Through October 31 • YTD collections of $33.2M are up 23.5% from prior year and up 1.9% from amended budget. YTD collections are up 39.9%from 2019, the last year not impacted by Covid-19. • Inflation as measured by the consumer price index was up 6.3% in October. $22,550,642 $23,753,206 $19,922,761 $26,904,921 $33,228,024 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2018 2019 2020 2021 2022 $1,106,596 $1,165,176 $1,371,727 $1,734,964 $1,718,251 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 2018 2019 2020 2021 2022 • October 2022 collections of $1.7M are down (1.0)% from prior year and down (1.0)% from the amended budget. October collections are up 47.5% from 2019. 143 Town of Vail Revenue Update December 6, 2022 YTD 0.5% Housing Fund Sales Tax Collections Real Estate Transfer Tax by Year YTD Through November 2022 Through October 31 $644,592  $701,484 $723,669  $268,096  $146,262  $279,582  $423,495  $360,169  $293,486  $190,980  YTD Total $4,031,817   $‐  $1,000,000  $2,000,000  $3,000,000  $4,000,000  $‐  $200,000  $400,000  $600,000  $800,000 January February March April May June July August September October Monthly YTD • This chart shows YTD collections of 1% RETT, segmented by real property values. 2022 collections are down (19.5)% from the prior year. $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2018 2019 2020 2021 2022 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million $6,569,078 $6,376,610 $8,940,918 $11,567,947 $9,315,033 • This chart shows monthly collections of the Town of Vail 0.5% housing fund sales tax and cumulative YTD totals. • The 0.5% sales tax was approved by voters in 2021 with an effective date of January 1, 2022. Monthly Total YTD Total 144 Town of Vail Revenue Update December 6, 2022 Construction Use Tax by Year YTD Through November 2022 Lift Tax Collections YTD Through October 31 • Use Tax collections through November 29 total $1,926,017 compared to $3,525,642 from this time last year. This is a decrease of (45.4)%. •2021 collections were significantly higher due to a number of large single-family residential projects and the interior renovation of the Sonnenalp Hotel. $3,620,978 $2,453,281 $1,957,225 $3,525,642 $1,926,017 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 2018 2019 2020 2021 2022 • 2022 YTD lift tax collections of $5.2M are up 17.6% or $771,947 from the same time last year. $3,948,172 $4,267,308 $3,113,849 $4,396,842 $5,168,789 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2018 2019 2020 2021 2022 145 Vail Business Review September 2022 November 30, 2022 The Vail Business Review breaks down the four percent sales tax collected for the month of September and Year to Date through 3rd Quarter 2022 (January through September). Overall, September sales tax increased 3.0% with retail increasing 4.7%, lodging increasing 0.3%, food and beverage increasing 1.5%, and utilities/other increasing 13.0%. Excluding the out-of-town category, sales tax for the month of September was up 5.4%. YTD through Q3 resulted in an overall 25.4% increase from the prior year. Retail increased 15.0%, lodging increased 40.5%, food and beverage increased 21.2% and utilities and other increased 17.4%. Excluding the out-of-town category, sales tax for January through September increased 28.1%. Town of Vail sales tax forms, the Vail Business Review, and sales tax worksheets are available on the internet at www.vailgov.com. You can subscribe to have the Vail Business Review and the sales tax worksheet emailed to you automatically from www.vailgov.com. Please remember when reading the Vail Business Review that it is produced from sales tax collections as opposed to actual gross sales. If you have any questions or comments, please feel free to call me at (970) 479-2125 or Carlie Smith, Finance Director, at (970) 479-2119. Sincerely, Lauren Noll Town of Vail Sales Tax Administrator 146 September 2022 Sales Tax Collections by Business Type Town of Vail Business Review September 4.0% Tax Collections by Year September Sales Tax September 2021 Retail $943,631 Lodging $709,594 Food & Beverage $623,282 Utilities & Other $152,095 $0 $500,000 $1,000,000 4.7%1.5% 13.0% RLFU -$8,000,000 $12,000,000 $1,544,768 $1,611,510 $1,771,277 $2,357,776 $2,428,602 $0 $1,000,000 $2,000,000 2018 2019 2020 2021 2022 0.3% • This report represents collections of Town of Vail 4.0% sales tax, as opposed to actual gross sales. •On January 1st, 2022, Town of Vail sales tax increased from 4.0% to 4.5% on all items except food for home consumption. 2022 results in this report only include the 4.0% sales tax collected on all items for accuracy of comparison to prior years. •Overall, September 2022 4.0% sales tax collections were up 3.0% from the prior year. • September 2022 retail sales increased 4.7%, lodging increased 0.3%, food and beverage increased 1.5% and utilities and other increased 13.0%. Retail $901,382 Lodging $707,557 Food & Beverage $614,198 Utilities & Other $134,638 $0 $500,000 $1,000,000 147 September Sales Tax Town of Vail Business Review 20212022 Geographic Area Trends by Year September Sales Tax by Year Sales Tax by Location Other Areas 15% Lionshead 14% Out of Town 29% Vail Village 42% Other Areas 15% Lionshead 11% Out of Town 31% Vail Village 43% • Vail Village sales tax decreased (1.6)%, Lionshead increased 29.0%, Other Areas increased 8.5%, and Out of Town decreased (2.4%). Excluding Out of Town collections, all areas were up 5.4%. $297,407 $294,746 $314,504 $347,605 $377,286 $252,109 $280,630 $271,867 $258,949 $334,007$278,242 $300,431 $321,385 $722,949 $705,666$717,009 $735,703 $863,522 $1,028,273 $1,011,644 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2018 2019 2020 2021 2022 Other Areas Lionshead Out of Town Vail Village • This chart shows September sales tax collections by geographic area over time. 148 September 4.0% Sales Tax Accommodation Services Sales Tax by Year Retail Business Sales Tax Detail September Sales Tax Town of Vail Business Review Apparel $179,402 Grocery $149,229 Gallery $13,209 Gifts $5,313 Jewelry $42,345Retail Liquor $40,670 Retail Other $350,337 Sporting Goods $104,751 Online Retailers $58,244 Retail Home Occupation $131 • Overall, September 2022 accommodations services increased 0.3%, short-term rentals decreased (14.9)% from prior year and hotels and lodges increased 7.3%. • Short-term rental sales tax collection numbers include online marketplace facilitators like Airbnb and VRBO. Revenue collections from facilitators may include some hotels and lodges. Facilitators first began collecting and remitting sales taxes on behalf of individual owners in October of 2020. $352,402 $101,075 $483,602 $223,955 $518,962 $190,632 $0 $200,000 $400,000 $600,000 Hotel and Lodges Short-Term Rentals 2022 2021 2020 149 Retail 165,684.26 150,828.49 9.85% Lodging 120,007.98 103,974.25 15.42% F & B 84,637.53 85,843.49 ‐1.40% Other 6,955.86 6,958.92 ‐0.04% Total 377,285.63 347,605.16 8.54% Retail 54,068.38 51,862.28 4.25% Lodging 144,401.84 108,934.11 32.56% F & B 133,233.32 96,906.15 37.49% Other 2,303.34 1,246.32 84.81% Total 334,006.87 258,948.85 28.99% Retail 368,297.74 354,986.46 3.75% Lodging 204,464.09 245,836.76 ‐16.83% F & B 1,270.68 1,730.60 ‐26.58% Other 131,633.57 120,395.10 9.33% Total 705,666.08 722,948.92 ‐2.39% Retail 355,580.92 343,705.26 3.46% Lodging 240,720.34 248,811.98 ‐3.25% F & B 404,140.36 429,718.15 ‐5.95% Other 11,201.88 6,037.26 85.55% Total 1,011,643.50 1,028,272.65 ‐1.62% Retail 943,631.31 901,382.50 4.69% Lodging 709,594.25 707,557.09 0.29% F & B 623,281.88 614,198.39 1.48% Other 152,094.66 134,637.60 12.97% Total 2,428,602.09 2,357,775.58 3.00% Retail Apparel 179,401.83 163,399.76 9.79% Retail Food 149,228.84 137,302.66 8.69% Retail Gallery 13,209.46 29,491.39 ‐55.21% Retail Gift 5,312.86 6,716.69 ‐20.90% Retail Home Occupation 130.89 239.96 ‐45.45% Retail Jewelry 42,345.38 48,506.69 ‐12.70% Retail Liquor 40,669.88 43,904.73 ‐7.37% Retail Other 350,336.61 309,261.19 13.28% Retail Sport 104,751.06 110,658.61 ‐5.34% Retail Online Retailer 58,244.50 51,900.83 12.22% Total 943,631.31 901,382.50 4.69% Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review September Sales Tax 2022 Collections   2021 Collections YoY % Change 150 Town of Vail Business Review January - September 4.0% Tax Collections by Year January - September Sales Tax January - September 2021January - September 2022 Sales Tax Collections by Business Type Retail $10,589,889 Lodging $12,273,958 Food & Beverage $6,900,018 Utilities & Other $1,743,956 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 15.0%21.2%17.4% RLFU -$8,000,000 $12,000,000 $21,459,847 $22,627,581 $18,562,764 $25,128,250 $31,507,821 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2018 2019 2020 2021 2022 40.5% • This report represents collections of Town of Vail 4.0% sales tax, as opposed to actual gross sales. •On January 1st, 2022, Town of Vail sales tax increased from 4.0% to 4.5% on all items except food for home consumption. 2022 results in this report only include the 4.0% sales tax collected on all items for accuracy of comparison to prior years. • Overall, January through September 2022, 4.0% sales tax collections were up 25.4% from the prior year. • January through September 2022 retail sales increased 15.0%, lodging increased 40.5%, food and beverage increased 21.2% and utilities and other increased 17.4%. Retail $9,210,119 Lodging $8,737,970 Food & Beverage $5,694,687 Utilities & Other $1,485,474 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 151 Town of Vail Business Review January - September 2021January - September 2022 Geographic Area Trends by Year January - September Sales Tax by Year Sales Tax by Location January - September Sales Tax Other Areas 15% Lionshead 16% Out of Town 25% Vail Village 44% Other Areas 15% Lionshead 15% Out of Town 26% Vail Village 44% • Vail Village sales tax increased 26.4%, Lionshead increased 34.9%, Other Areas increased 26.4%, and Out of Town increased 17.8%. Excluding Out of Town collections, all areas were up 28.1%. $3,357,725 $3,723,864 $3,101,763 $3,757,393 $4,749,595 $4,526,194 $4,901,143 $3,579,470 $3,781,599 $5,101,449 $2,841,944 $2,975,263 $3,073,361 $6,634,412 $7,812,788 $10,733,984 $11,027,311 $8,808,170 $10,954,846 $13,843,990 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2018 2019 2020 2021 2022 Other Areas Lionshead Out of Town Vail Village • This chart shows January through September sales tax collections by geographic area over time. 152 Retail Business Sales Tax Detail January - September Sales Tax Town of Vail Business Review January - September 4.0% Sales Tax Accommodation Services Sales Tax by Year Apparel $2,143,657 Grocery $1,624,176 Gallery $110,857 Gifts $50,868 Jewelry $404,699Retail Liquor $496,525 Retail Other $2,903,740 Sporting Goods $2,257,139 Online Retailers $596,205 Retail Home Occupation $2,023 • Overall, January through September 2022 accommodations services increased 40.5%, short-term rentals increased 32.1% from prior year and hotels and lodges increased 44.3%. • Short-term rental sales tax collection numbers include online marketplace facilitators like Airbnb and VRBO. Revenue collections from facilitators may include some hotels and lodges. Facilitators first began collecting and remitting sales taxes on behalf of individual owners in October of 2020. $4,758,933 $1,402,749 $6,010,169 $2,727,801 $8,671,271 $3,602,687 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 Hotel and Lodges Short-Term Rentals 2022 2021 2020 153 Retail 1,780,835.96 1,706,742.47 4.34% Lodging 2,133,221.17 1,376,184.54 55.01% F & B 770,511.68 620,075.25 24.26% Other 65,026.12 54,390.89 19.55% Total 4,749,594.94 3,757,393.15 26.41% Retail 1,231,327.30 1,074,639.58 14.58% Lodging 2,538,762.44 1,734,945.54 46.33% F & B 1,313,798.72 962,182.31 36.54% Other 17,560.30 9,831.50 78.61% Total 5,101,448.76 3,781,598.93 34.90% Retail 3,107,990.46 2,624,212.17 18.44% Lodging 3,208,197.89 2,694,560.99 19.06% F & B 17,265.88 15,998.50 7.92% Other 1,479,333.51 1,299,639.98 13.83% Total 7,812,787.74 6,634,411.64 17.76% Retail 4,469,735.36 3,804,524.63 17.48% Lodging 4,393,776.89 2,932,278.71 49.84% F & B 4,798,441.71 4,096,431.08 17.14% Other 182,035.82 121,611.77 49.69% Total 13,843,989.78 10,954,846.19 26.37% Retail 10,589,889.09 9,210,118.84 14.98% Lodging 12,273,958.39 8,737,969.78 40.47% F & B 6,900,017.98 5,694,687.14 21.17% Other 1,743,955.76 1,485,474.14 17.40% Total 31,507,821.22 25,128,249.90 25.39% Retail Apparel 2,143,657.47 1,772,354.61 20.95% Retail Food 1,624,175.64 1,515,091.09 7.20% Retail Gallery 110,857.40 100,259.01 10.57% Retail Gift 50,867.63 51,578.22 ‐1.38% Retail Home Occupation 2,023.14 2,309.38 ‐12.39% Retail Jewelry 404,698.57 342,723.64 18.08% Retail Liquor 496,525.36 494,701.08 0.37% Retail Other 2,903,739.80 2,448,192.28 18.61% Retail Sport 2,257,138.64 1,969,584.75 14.60% Retail Online Retailer 596,205.45 513,324.78 16.15% Total 10,589,889.09 9,210,118.84 14.98% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review January ‐ September Sales Tax 2022 Collections   2021 Collections YoY % Change Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary 154 AGENDA ITEM NO. 3.1 Item Cover Page DATE:December 6, 2022 SUBMITTED BY:Greg Roy, Community Development ITEM TYPE:DRB/PEC Update AGENDA SECTION:DRB / PEC (5 min.) SUBJECT:DRB/PEC Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: DRB Results 11-16.pdf PEC Results 11-14.pdf 155 Present:Kathryn Middleton Kit Austin Erin Iba Peter Cope Doug Cahill 1.Virtual Meeting Link Register to attend Design Review Board Meetings . Once registered, you will receive a confirmation email containing information about joining this webinar. 2.Call to Order 3.Main Agenda Final review of change to approved plans (deck) Address/ Legal Description: 4822 Meadow Lane/Lot 9, Block 7, Bighorn Subdivision 5th Addition Planner: Greg Roy Applicant Name: Nova Sherman LLC, repersented by RAL Architects Inc. 3.1 DRB19-0056.002 - Nova Sherman LLC Condition: The applicant shall provide an updated geohazard report with the building permit submittal. Final review of change to approved plans (shotcrete to northern wall) Address/ Legal Description: 129 North Frontage Road West/Lot 3, Middle Creek Subdivision Resub Lot1 Planner: Greg Roy Applicant Name: Town of Vail, represented by Triumph Development 3.2 DRB21-0233.004 - Residences at Main Vail Final review of an exterior alteration (facade) 3.3 DRB22-0393 - Davidor Jewelry Design Review Board Minutes Wednesday, November 16, 2022 2:00 PM Vail Town Council Chambers DRB19-0056.002 Documents.pdf DRB19-0056.002 Plans.pdf Erin Iba made a motion to Approve with Conditions and the findings that the application meets 14-10-5 and 14-10-4; Peter Cope seconded the motion Passed (5 - 0). DRB21-0233.004 Documents.pdf DRB21-0233.004 Plans.pdf Erin Iba made a motion to Table to a date uncertain ; Peter Cope seconded the motion Passed (5 - 0). 1 Design Review Board Meeting Minutes of November 16, 2022 156 Address/ Legal Description: 184 Gore Creek Drive 152/Lot 1, Lodge Subdivision Planner: Jonathan Spence Applicant Name: Lodge at Vail Unit 152 Funding LLC, represented by Pierce Austin Architects (Austin recused from vote) Final review of new construction (new duplex) Address/ Legal Description: 1487 Vail Valley Drive / Lot 9, Block 3, Vail Valley Filing 1 Planner: Jamie Leaman-Miller Applicant Name: Mexamer II, represented by KH Webb Architects 3.4 DRB22-0394 - Mexamer II Vail Valley Drive Residence Final review of an exterior alteration (HVAC equipment & landscaping) Address/ Legal Description: 846 Forest Road/Lot 1, Eagle River Water & Sanitation District Subdivision Planner: Jonathan Spence Applicant Name: Eagle River Water & Sanitation, represented by Black & Veatch 3.5 DRB22-0437 - Eagle River Water & Sanitation Final review of an exterior alteration (deck) Address/ Legal Description: 1854 Glacier Court A/Lot 25, Block 2, Lion's Ridge Subdivision Filing 3 Planner: Greg Roy Applicant Name: Jodi & Robert Rolland, represented by Pierce Austin Architects 3.6 DRB22-0439 - Rolland Residence (Austin recused from vote) 3.7 DRB22-0443 - 2022 Westhaven Circle Trust DRB22-0393 Davidor Jewerlry.pdf Erin Iba made a motion to Table to a date uncertain ; Peter Cope seconded the motion Passed (4 - 0). DRB22-0394 Plans.pdf Erin Iba made a motion to Table to a date uncertain ; Peter Cope seconded the motion Passed (5 - 0). DRB22-0437 ERWSD Plan Set.pdf Erin Iba made a motion to Table to a date uncertain ; Peter Cope seconded the motion Passed (5 - 0). Decking Side by Side.jpg DRB22-0439 Plans.pdf Erin Iba made a motion to Approve with the findings that the application meets 14-10-4 ; Peter Cope seconded the motion Passed (4 - 0). 2 Design Review Board Meeting Minutes of November 16, 2022 157 Final review of an addition Address/ Legal Description: 1240 Westhaven Circle/Lot 31-A, Glen Lyon Subdivision Planner: Jamie Leaman-Miller Applicant Name: 2022 Westhaven Circle Trust, represented by Alicia Davis Architect PC 4.Staff Approvals Final review of change to approved plans (exterior changes to a new duplex) Address/ Legal Description: 816 Forest Road/Lot 14, Block 1, Vail Village Filing 6 4.1 DRB21-0334.001 - Mexamer Forest Road LLC Planner: Jonathan Spence Applicant Name: Mexamer Forest Road LLC, represented by KH Webb Architects Final review of change to approved plans (vent termination) Address/ Legal Description: 2009 Sunburst Drive/Lot 15, Vail Valley Filing 3 4.2 DRB22-0215.001 - Two Hearts LLC Planner: Jamie Leaman-Miller Applicant Name: Two Hearts LLC, represented by Nedbo Construction Final review of change to approved plans (deck to patio) Address/ Legal Description: 2800 Aspen Lane B/Lot 11, Vail Village Filing 11 4.3 DRB22-0231.001 - Kjesbo Residence Planner: Jonathan Spence Applicant Name: Roland Kjesbo, represented by Nedbo Construction Final review of an addition Address/ Legal Description: 1 Vail Road 8034/Lot A - C, Vail Village Filing 2 4.4 DRB22-0339 - Mount Elbert Corporation Planner: Jonathan Spence Applicant Name: Mount Elbert Corporation, represented by RA Nelson LLC Final review of an exterior alteration (AC) Address/ Legal Description: 710 W Lionshead Cir 204/Lot 1, Block 2, Vail Lionshead Filing 3 4.5 DRB22-0434 - Grunberg Residence Planner: Greg Roy Applicant Name: Neil & Nancy Grunberg, represented by Nash Miller LLC Final review of an exterior alteration (heat pump) 4.6 DRB22-0444 - Rumaine Residence Address/ Legal Description: 1063 Vail View Drive 21/Lot A5, Block A, Lion's Ridge Subdivision DRB22-0443 Plans.pdf Erin Iba made a motion to Table to a date uncertain ; Peter Cope seconded the motion Passed (5 - 0). 3 Design Review Board Meeting Minutes of November 16, 2022 158 Filing 1 Planner: Jamie Leaman-Miller Applicant Name: Pegasus Rumaine - Mark Luzar, represented by Eagle Mountain Plumbing & HVAC Final review of an exterior alteration (mini-split AC) Address/ Legal Description: 200 Vail Road 377/Lot A, Block 5C, Vail Village Filing 1 4.7 DRB22-0445 - Morris Residence Planner: Jamie Leaman-Miller Applicant Name: Arthur Morris, represented by American Plumbing & Heating Final review of an exterior alteration (mini-split AC) Address/ Legal Description: 200 Vail Road 378/Lot A, Block 5C, Vail Village Filing 1 4.8 DRB22-0446 - Morris Residence Planner: Jamie Leaman-Miller Applicant Name: Arthur Morris, represented by American Plumbng & Heating Final review of a sign application Address/ Legal Description: 288 Bridge Street C2/Lot C & D, Block 5A, Vail Village Filing 1 4.9 DRB22-0447 - Loro Piana Planner: Greg Roy Applicant Name: Bridge Street Building LLC, represented by Pierce Austin Architects Final review of an exterior alteration (windows/door) 4.10 DRB22-0452 - Kaplan Residence Address/ Legal Description: 4610 Vail Racquet Club Drive 18/Vail Racquet Club Condominiums Planner: Greg Roy Applicant Name: Oliver Kaplan, represented by ACDF Corporation Final review of an exterior alteration (hot tub) Address/ Legal Description: 2478 Garmisch Drive/Lot 27, Block A, Vail Das Schone Filing 1 4.11 DRB22-0453 - Saalfeld Residence Planner: Heather Knight Applicant Name: Thomas & Kimberly Saalfeld, represented by Nedbo Construction Final review of a tree removal Address/ Legal Description: 2810 Aspen Court/Lot 13, Vail Village Filing 11 4.12 DRB22-0455 - Vail Aspen LLC Lake Street Advisors Planner: Jamie Leaman-Miller Applicant Name: Vail Aspen LLC Lake Street Advisors, represented by Old Growth Tree Service 4 Design Review Board Meeting Minutes of November 16, 2022 159 Final review of an exterior alteration (air handler) 4.13 DRB22-0459 - Town of Vail - Community Development Address/ Legal Description: 111 South Frontage Road West/Unplatted - TOV Community Development Building Planner: Jonathan Spence Applicant Name: Town of Vail Finance Department, represented by Pierce Austin Architects Final review of an exterior alteration (air handler) 4.14 DRB22-0460 - Town of Vail - Municipal Building Address/ Legal Description: 75 South Frontage Road West/Unplatted - TOV Administration Building Planner: Jonathan Spence Applicant Name: Town of Vail, represented by Pierce Austin Architects 5.Staff Denials 6.Adjournment 5 Design Review Board Meeting Minutes of November 16, 2022 160 Present:Bobby Lipnick Karen Perez John Rediker Henry Pratt Bill Jensen Reid Phillips Brian Judge 1.Virtual Link Register to attend the Planning and Environmental Commission meeting . Once registered, you will receive a confirmation email containing information about joining this webinar. 2.Call to Order 3.Executive Session 3.1 Executive Session, pursuant to: 1) C.R.S. §24-6-402(4)(b) – to receive legal advice on specific legal questions; Regarding: Planning and Environmental Commission Process 20 min. 4.Main Agenda Planner: Jonathan Spence Applicant Name: VI Plaza Unit 603 LLC, Represented by Mauriello Planning Group 4.1 PEC22-0028 - A request for the review of a Conditional Use Permit, pursuant to Section 12-16, Conditional Use Permits, Vail Town Code, to allow a Professional/Business Office, a Conditional Use in the Public Accommodation (PA) District, located at 68 East Meadow Drive, Unit 603/ Vail Village Filing 1, Lot O, Block 5D, and setting forth details in regard thereto. The applicant requests this item is moved to last on the agenda. Planner Roy gives an introduction to the application. Judge asks about the timeframe for a conditional use permit. Roy clarifies that the use is continued. Allison Kent with Mauriello Planning Group gives a history of the space. The proposed Planning and Environmental Commission Minutes Monday, November 14, 2022 1:00 PM Vail Town Council Chambers Karen Perez made a motion to Approve ; Bobby Lipnick seconded the motion Passed (7 - 0). PEC22-0028 Staff Memo.pdf Attachement A. Applicant Narrative, including photo and aerial map, dated October 3, 2022..pdf 1 Planning and Environmental Commission Meeting Minutes of November 14, 2022 161 conditional use is a professional office space. Judge asks if exterior changes would go to the Design Review Board. Roy confirms. Jensen asks the type of office use. Kent says she believes it's a financial office. There are similar offices in the area. Pratt says he is glad the Town Council denied a previous residential conversion at this site. There is a shortage of office space in the Town so he appreciates the application. Rediker asks for public comment, there is none. Rediker states that all of the review criteria are met. Perez agrees. Planner: Jonathan Spence Applicant Name: HCT Member, LLC represented by Mauriello Planning Group 4.2 PEC22-0006 - 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. Items 4.2 through 4.4 will be heard concurrently. Planner Roy introduces the applications. Staff has recommended approval of these items. Sharon Cohn introduces the applicant team. She thanks commissioners and staff for the time on this project. She talks about the history and progression of the proposal. She says the Reid Phillips made a motion to Approve with the findings in the staff memo ; Henry Pratt seconded the motion Passed (7 - 0). PEC22-0006 Evergreen Staff Memorandum.pdf Attachment A. Evergreen Narrative Revised 10-24-22.pdf Attachment B. Revised Environmental Impact Report, October 2022.pdf Attachment C. Revised Plan Set, October 24, 2022.pdf Attachment D.. Lionshead Redevelopment Master Plan.pdf Attachment F. PEC meeting minutes, April 22, 2022.pdf Attachment G. PEC meeting minutes, May 9, 2022.pdf Attachment H. PEC meeting minutes, June 27, 2022.pdf Attachment I. PEC meeting minutes, July 25, 2022.pdf Attachment J. Susie Tjossem, November 1, 2022.pdf Attachment K. Harry Frampton, November 9, 2022.pdf Attachment L. Rohn Robbins, Representing Vail International Condominiums, November 8, 2022 (1).pdf Attachment M. Kevin and Josephine Tice, November 10, 2022.pdf Attachment N. Merv Lapin, November 10, 2022.pdf Attachment O. Medical Helicopter Accident Review (Attachment to Merv Lapin Correspondence).pdf 2 Planning and Environmental Commission Meeting Minutes of November 14, 2022 162 project is better now than when it started due to the feedback and collaboration with both the commission and the public that has been received. Dominic Mauriello gives a presentation. He talks about the PEC proposals that are being considered. He addresses the history of the property, the current review process - as well as the feedback that has been received and the changes that have been made. He addresses the existing conditions and the neighborhood context. He references the Lionshead Redevelopment Master Plan (LRMP). Matt Kreilich with Snow-Kreilich Architects addresses the architecture of the building. He talks about the effort towards transitional architecture recognizing Vail's past and future. He talks about the sustainable strategies associated with the project, including a commitment to Leed certification. He references the adjustments to the roof form, incorporating more sloped roofs and a reduction of the green roof and flat roof areas. He addresses the massing and scale, including a more modular approach with more articulation. He walks through the proposed elevations and recent changes, showing materials to help break up the massing and step backs to denote a village-like elevation. Mauriello addresses the pedestrian movement across the site, as well as the easements in place for a proposed pedestrian path to occur from West Meadow Drive to the Frontage Road. He notes that the land exchange with Vail Health was key to creating this pedestrian connectivity. He talks about the proposed landscape lid as well as the distances to other structures in the area. Cohn runs through the proposed amenities at the Evergreen condotel. Mauriello addresses zoning compliance in relation to the proposal. He says the new stream setback requirement is being met. The applicant team wants to work with the Town on restoration efforts regarding the creek. The project is reducing surface parking which will be a significant improvement to the quality of the corridor. He addresses compliance with height, as well as density and GRFA. Mauriello addresses landscaping and parking standards, as well as employee housing (EHU) requirements. These requirements are being met. Mauriello talks about the areas where a variance is being requested. A zero setback variance is being requested in the area of the landscape lid. They are also seeking a below grade variance adjacent to VH parking as well as below grade site coverage variance. He notes that Vail Health agrees with the approval of these variances. Mauriello addresses the Environmental Impact Report. The document has been updated and corrected to reflect the changes made to the project. He walks through the sun and shade analysis at key times of the year. Perez asks if the walking path to Meadow Drive is included in the study of the sun and shade. Mauriello says it's not specifically included in the study and he walks through the shading in that area based on the existing study. Mauriello talks about the fiscal impact. Based on input from the PEC and the public, the 3 Planning and Environmental Commission Meeting Minutes of November 14, 2022 163 program was modified to drop density and general massing. The existing Evergreen has 147 keys, there are 209 keys proposed. Mauriello walks through the criteria for the requested items. The proposal will undergo Design Review Board review, and there are proposed conditions of approval. Rediker references Sections 8.4.2.2 and 8.4.2.3 in the LRMP. He asks about the frontage road side of the building. Mauriello says that is considered an "other frontage," which becomes the basis for the height requirement. Roy confirms that staff agrees with this assessment. Rediker references 5.19.3, referring to the preservation of existing units. He asks the applicant how the criteria are being met. Mauriello says it is in compliance with the live bed policy in the Lionshead Master Plan. It was demonstrated effectively that the keys were equivalent, and the number of keys will be exceeded. As long as there is a certain unit count that will perform as well as or better than today. Rediker asks about 5.19.4 regarding impacts on the Middle Creek stream tract. He asks about a landscaping plan regarding the space between the west façade and Middle Creek. Mauriello says that this is demonstrated in the landscaping plan. Some of that is on Town property, which will require cooperation with the Town regarding restoration efforts. He says that is largely an element that will be addressed by the Design Review Board. However, that area is largely untouched without pathways between patios and is considered a passive area. Lipnick asks if the restaurant is full service with three meals a day. Mauriello says that is the intent, with offerings throughout the day. Lipnick asks how Middle Creek is being preserved and enhanced. Mauriello says a half century of paved areas with untreated runoff will be corrected. They will work with the Town on landscaping improvements and work on bringing it back to a more native area. Lipnick appreciates the changes like sloped roofs, improvements in mass and scale, the addition of the restaurant, the commitment to LEED Certification, and EHUs on site. Rediker asks the applicant to clarify regarding the variance for below grade site coverage. Mauriello walks through the site plan. He describes how the roof of the parking garage becomes the usable landscaped area. Rediker asks about the loading and unloading. 4 Planning and Environmental Commission Meeting Minutes of November 14, 2022 164 Mauriello talks about the proposed separate access for loading and unloading on the northwest of the site. The entrance to the loading area is just west of the new roundabout on the frontage road. Rediker asks about the façade along the frontage road. He asks about the articulation in relation to the LRMP. Mauriello walks through the articulation on the north façade. Kreilich addresses the stepbacks on the building. Rediker asks about the northwest corner of the building. Mauriello says the highest points are probably the sloped roofs. Perez asks where the cars enter the underground lot. Mauriello says the entrance is from the frontage road to the right of the porte-cochere. Perez cites the criteria including such other factors as the PEC deems appropriate. She is concerned we are building a wall between the town and the mountain. She is still concerned about the mass and size and scaling. She asks about preserving accommodation units, how are you complying with the master plan? Mauriello says that was demonstrated in the previous meeting, citing historical numbers and similar projects. He says in condohotels, even without requirements that people participate, they do, mostly for investment purposes. Perez says how can you guarantee this? Mauriello says it is demonstrated in the evidence of the last few decades. People are buying condos as an investment, rentals offset the cost. You make it inconvenient for people to not want to put their units into the rental pool. We have a demonstrated performance of these units throughout the community. Rediker asks about the articulation along the west side of the building. Kreilich walks through the details of the west façade. The façade steps back two feet where the material transitions above the second story. At the top, there is a 12 foot-stepback, there are also vertical stepbacks along the elevation in places to break up the massing. Pratt asks why there is a condition of approval for LEED Certification. Roy says it was so that some level of follow through would be implemented per the condition of approval, but a precise level is not noted. Pratt says he's not sure how that could be enforced. Pratt asks about the parking requirements. Roy cites the amenities in the building in relation to the parking. 5 Planning and Environmental Commission Meeting Minutes of November 14, 2022 165 Mauriello says the parking complies even without the multi-use credit. Pratt asks about ADA requirements for the pathway. Roy says he would defer to the building department which has reviewed the plans. Pratt asks about a design showing a path between buildings, breaking up the mass. Roy says he's not clear on the history of that item. Pratt asks about the helicopter approach routes. Mauriello says it was included in the submittal, and has been reviewed by the relevant parties and the requirements are set in the subdivision plat as recorded. Rediker asks for public comment. Roy says that comments received over the weekend were passed on to the board prior to the meeting. Dan Wolf represents Vail International. His client has not had an opportunity to fully review the revised plans. His colleague Rohn Robbins submitted a letter included in the packet. There have been improvements but some of their concerns remain. He says on the west elevation significant portions are not sloped or not to the degree required by the master plan. The west façade remains the most significant concern, they are concerned about the impacts on Middle Creek. Regarding the replacement of the short term units, he didn't hear a legal guarantee nor receive sufficient information that there will be a replacement of those. Tom Braun speaks on behalf of Vail Health. They have reviewed the agreements from 2018. He speaks regarding the conformance with regulations regarding the helipad flight path. Regarding the circulation under the lid, the hospital was aware of the walkway and landscape lid and comfortable with the proposal at this point. The housing on site, creek setback, and LEED certification are all positive things. They believe the project works and fits in well with what has been done across the property line. This will bring a positive change to the neighborhood just like Vail Health did. Merv Lapin lives in the area. He questions the numbers related to the required employee housing. He asks why does the Town have to subsidize a profitable project? He suggests the 20% for EHUs should be a much higher number. He is concerned about the size of the building, or whether it could be broken up into multiple buildings. He asks about the notification process related to applications like PEC and DRB applications. He is concerned about the flight path to the helipad crossing the building and states that it is a common sense concern. Why put more buildings and units in the flight path? He is concerned about the price point and says these are luxury condos that are not going to be rented out. He asks that the PEC postpone the application so the resubmittal can be reviewed in detail. He says that the Town was involved in writing the regulations, so the Town has the power to negotiate and urges the PEC to negotiate. Kim Fuller is a Vail resident and small business owner. She says the proposal is a 6 Planning and Environmental Commission Meeting Minutes of November 14, 2022 166 reinvestment in Vail, and supports the changes that have been made through the review process like the sloped roofs. The implementation of on-site housing is a benefit to the community, as she knows firsthand when she started her career here. Every workforce bed makes a difference. The housing is thoughtful, sustainable and supports the local workforce. She asks the PEC to approve the plan. Lane Lapin lives in the neighborhood. She asks about access and circulation for the residents in the proposed building. She is concerned about the pedestrian and population impact on the space between the villages, particularly along West Meadow Drive. She asks about the details regarding staging for the project and how materials will arrive on site. She talks about current construction and parking along Meadow Drive. Josephine Tice lives in the area. The proposal will add a lot of people to the area and there needs to be efforts regarding traffic flow, pedestrian flow, and safety on the street and trails. She says we need to consider the current pedestrian situation and the increase that will result from this project. Ted Steers owns Vail Village Rentals. He says 10 years ago the stigma of renting premium property went away. The current state of high-end rentals has changed dramatically over the past years. The Town is currently running short of properties that can be rented. The units will rent well and we desperately need them. Hans (inaudible) is an owner and board member at Vail International. He states that he received the updated proposal one week ago and has not had time for sufficient review. He says the roof slopes are not in compliance with the regulations. He is concerned that the Middle Creek side is like a wall, too tall and too massive. He has some experience with rentals, creating keys that are never used is not something that will be successful or provide the necessary rental units. He questions if luxury units will be rented. He is not sure removing the parking lot is an enhancement if a 6-8 story building is added in its place. Jack Ryan is a developer and has worked in the village. He supports the project and the developer. He asks that the application is approved today. Rediker asks for public comment online. Roy says there is none. Rediker wants to reiterate questions raised by the public. He asks the applicant about ingress and egress from the building. Mauriello cites the exit points including the porte cochere, the pedestrian pathway between West Meadow Drive and the Frontage Road, and the landscape lid in the center. On the west side there is an emergency egress exit including the bridge across the creek. Mauriello says both residents and guests could access the path to the west. Rediker asks about the staging for the project. Mauriello says that has not been fully realized, but he thinks the majority of the staging will be from the frontage road. Cohn confirms. 7 Planning and Environmental Commission Meeting Minutes of November 14, 2022 167 Phillips asks if Vail Fire has been involved. Mauriello says they have been involved in the review process, and the applicants have complied with their requests. Peter Noble talks about 99 Vail Rd, which is currently being rented. He states that short term rental potential is there for high-end properties and that anything in town that can be rented is being rented. Rediker asks for commissioner comment. Lipnick supports the new proposal for the reasons stated earlier. There is less massing and less scale. Through sloped roofs, transitions, etc.. a lot has been done to decrease the mass and scale. He supports the employee housing units provided on site. He states that we have come a long way since February to appease the PEC, and community concerns. He does not have concerns that units will not be rented. Perez thinks the Evergreen Lodge needs to be redeveloped and supports that. She doesn't think we're there yet in meeting the criteria, particularly relating to mass and scale. A small inset doesn't address that concern and more needs to be done to make the building not seem so large. There should be more than a brick wall, the applicants are moving in the right direction. Her biggest issue in the LRMP is the requirement that 128 units that are short term rentals. We have to follow the criteria and the master plan. How are you going to guarantee 128 units? She states that she can't support the approval of the development. The goal is not to block development, and the applicants are making progress but must meet the criteria. Pratt asks about the helicopter approach routes and states that is a valid public concern that needs to be addressed. He thinks the resubmittal is a huge improvement with visual interest. However it is still a large building, and Section 5.19.5 says most of the bulk mass and scale should be located in the northwest. The proposal creates a wall along the frontage road. He applauds including the EHUs on site. The roof slopes on the west side are not enough, he doesn't think they comply with the design guidelines in that respect. Phillips appreciates the effort on this project and appreciates the applicants incorporating the PEC feedback. He acknowledges that some of these concerns will be addressed at the DRB stage. He thanks staff and thinks the applicants have satisfied the criteria. The precedent of large buildings along the Frontage Road has been set. He doesn't see a lot of people walking on the Frontage Road. He feels comfortable about a vote for approval. Judge says he has watched the past meetings and reviewed the application materials. He says the applicants have come a long way, but there is a tough challenge between the hospital and the civic area. As far as bulk and mass it is a big building. There is articulation that is talked about in the LRMP. The proposal is not in compliance with Chapter 8 but the DRB will also look at it. Judge says the Lionshead Design guidelines are the minimum standards, is that what the development is going for? The LRMP talks a lot about doing better than the minimum and taking it to the next level. He sees a lot of status quo. He questions the EIR and that no harm is being done with regard to parking. Judge comments on the applicants maintaining and enhancing the accommodation units already in place. He talks about maintaining, preserving, 8 Planning and Environmental Commission Meeting Minutes of November 14, 2022 168 and enhancing live beds as a goal of the LRMP for the Evergreen redevelopment. How does the plan today specifically do that? He doesn't disagree the market has changed but it can change again so it's good to have some protection there. He hopes there is a high level of commitment to working with the Town on Middle Creek. He references the opportunities and upgrades for future improvements noted in Section 5.19. He doesn't see how it meets the requirements given those items. Jensen thanks the applicants for listening and making significant changes. It's still a big building, but his interpretation of Lionshead is that's what the community wants and needs. The worst part of Vail is I-70 and the community purposefully has built a wall. He remembers arguments about Solaris, but it made Vail Village a more peaceful place; that could happen on Meadow Drive. He sees this as central to Vail and this type of massing is typical in the central core. He knows condotels work, if they have a front desk. He would add that to the stipulations, if you have a front desk that works. Rediker agrees that a lot of work has been done and the project has come a long way. He also recognizes that the LRMP is imperfect. The live bed criteria has been met per code, but he is still concerned about the bulk and mass. He acknowledges that it complies. There should be provisions in place regarding the landscape plan, particularly regarding the creek. Pratt thanks the applicants for the presentation. Judge adds that massing along the Frontage Road is not a bad thing. Jensen adds that the current building is a 2-star property and the new building will be a 4.5- star property. Lipnick states that historically, helicopter crashes are related to pilot judgement. This project is not within the flight path and therefore is a non-issue. Planner: Jonathan Spence Applicant Name: HCT Member, LLC represented by Mauriello Planning Group 4.3 PEC22-0007 - 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. Reid Phillips made a motion to Approve with the conditions and findings in the staff memo ; Bobby Lipnick seconded the motion Passed (4 - 3). Voting For: Bill Jensen, Bobby Lipnick, Reid Phillips, John Rediker Voting Against: Karen Perez, Henry Pratt, Brian Judge PEC22-0007 Staff Memorandum.pdf 9 Planning and Environmental Commission Meeting Minutes of November 14, 2022 169 Planner: Jonathan Spence Applicant Name: HCT Member, LLC represented by Mauriello Planning Group 4.4 PEC22-0008 - 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 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. 5.Approval of Minutes 5.1 October 24, 2022 PEC Meeting Results 6.Information Update 7.Adjournment Attachment A. Evergreen Narrative Revised October 24, 2022 (1).pdf Reid Phillips made a motion to Approve with the findings in the staff memo ; Bobby Lipnick seconded the motion Passed (7 - 0). PEC22-0008 Staff Memorandum.pdf Attachment A. Evergreen Narrative Revised October 24, 2022 (1).pdf Reid Phillips made a motion to Approve with the findings in the staff memo ; Henry Pratt seconded the motion Passed (7 - 0). Karen Perez made a motion to Approve ; Bill Jensen seconded the motion Passed (7 - 0). PEC Results 10-24.pdf Bill Jensen made a motion to Adjourn ; Henry Pratt seconded the motion Passed (7 - 0). 10 Planning and Environmental Commission Meeting Minutes of November 14, 2022 170