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HomeMy WebLinkAbout2008 - July 15, TC MemoMEMORANDUM TO: Vail Town Council FROM: George Ruther, Director of Community Development Greg Hall, Director of Public Works & Transportation Department DATE: July 15, 2008 SUBJECT: Lionshead Parking Structure Redevelopment Project Plan DESCRIPTION OF THE REQUEST Open Hospitality Partners Vail One LLC ("OHP") has prepared a "Project Plan" pursuant to the terms of the Development Improvement Agreement ("Agreement"), dated October 16, 2007. The purpose of this memorandum is to: 1) provide background information on the role of the Project Plan in the redevelopment process; 2) outline the required contents of the Project Plan pursuant to the terms of the Agreement; 3) provide an outline of the next steps in the review process of the Project in accordance with the terms of the Agreement; and, 4) to provide a list of proposed amendments to the Development Improvement Agreement. Role of the Project Plan On October 16, 2007, the Open Hospitality Partners Vail One, LLC and the Town of Vail entered into a Development Improvement Agreement to further consider the redevelopment of the Lionshead Parking Structure. The purpose of the Agreement is to document the expectations of the parties with regards to the redevelopment of the parking structure and certain public improvements, (ie, conference center, public parking, loading and delivery, square footage breakdowns, traffic reports, etc.) and to provide a sequence for the completion of the various steps in the redevelopment planning process. With that in mind, the Agreement contemplates the creation of a Project Plan which shall be reviewed and approved by the Town Council. III. Required Contents of the Project Plan According to the Agreement, the Project Plan means the schematic, architectural internal and external layouts of the Project, which may include major architectural concepts, defined and architectural uses, massing, a valet parking program and movement of people, but shall not include architectural details including colors, materials, or other similar architectural or design specifics. In staff's opinion, the proposed Project Plan not only meets the minimum requirements for the contents of the Plan, but exceeds the requirements for content and information. IV. Next Steps in the Review Process The Development Improvement Agreement outlines the necessary steps in the review process of the Lionshead Parking Structure Redevelopment project. In some instances, the steps include dates and timeframes and in other instances the steps are merely sequential in order. According to the Agreement, a deed- restriction agreement needs to be reviewed and approved prior to the Town Council taking action on the Project Plan submittal. For various reasons this step in the review process has not yet occurred. OHP and the Town Staff are proposing that the two parties mutually agree to amend the terms around these steps to allow action to be taken on the Project Plan prior to the deed restriction agreement being approved. Based upon input from Vail Resorts, the holder of the deed restriction, they would prefer that the Town Council approves the Project Plan and then approach them to determine how the restriction might be amended. Staff recommends, however, that if the parties are agreeable to this change in process that no further action be taken on the Project until such time as the deed restriction agreement has been amended. V. Development Improvement Agreement Amendments In order to continue forward with the Lionshead Parking Structure Redevelopment Project certain amendments need to be addressed in the Development Improvement Agreement. According to the Agreement, certain dates and sequential steps are prescribed for the Project. For instance, the Agreement states that prior to reviewing and approving the Project Plan, OHP must first provide a deed restriction agreement. Other similar examples exist throughout the Agreement. Staff recommends that if the Town Council is favorable towards the Project Plan, as proposed, that the Council instructs staff to return to the Town Council meeting on August 5, 2008 with a resolution adopting the Project Plan and an amended Development Improvement Agreement for the Council's review and consideration. 2 I'- HAYES, PHILLIPS, HOFFMANN & CARBERRY, P.C. 1350 Seventeenth Street, Suite 450 Denver, Colorado 80202-1576 Telephone: (303) 825-6444 Facsimile: (303) 825-1269 John E. Hayes Corey Y. Hoffmann Kendra L. Carberry Jefferson H. Parker Of Counsel Herbert C. Phillips Stephen H. Kaplan, Esq. Kaplan, Kirsch & Rockwell LLP 1675 Broadway, Suite 2300 Denver, CO 80202 Fairplay Office 675 Main Street P.O. Box 1046 Fairplay, CO 80440 Telephone: (719) 836-9005 Facsimile: (719) 836-9014 June 5, 2008 Hilary M. Graham Gregory D. Graham Charissa A. Eckhout Re: Lionshead Parking Structure Development Improvement Agreement Dear Steve: As you know, Matt Mire has asked me to represent the Town of Vail for purposes of the ongoing implementation of the Lionshead Parking Structure Development Improvement Agreement between the Town and OHP Vail One, LLC ("OHP"), dated October 16, 2007 ("DIA"). I write in response to OHP's letter to the Town dated April 14, 2008. If for any reason you no longer represent OHP, please let me know as soon as possible so that I may communicate with OHP directly or with OHP's current counsel. First, pursuant to § 3.08 of the DIA, the Town acknowledges that OHP has now exercised its right to extend the deadline for review of the Project Plan to September 15, 2008. I understand that OHP is working with Town staff to meet this deadline. Section 6.01(a) of the DIA required submittal of a "revised conference center proposal" on or before February 15, 2008. As of June 3, 2008, it is our understanding that the Project Plan will include a revised conference center proposal that seeks no additional funding from the Town. If this understanding is incorrect, please let me know as soon as possible. We would also request an update on your discussions with Vail Resorts for removal of the deed restriction on the property, because this is a prerequisite to the submittal of the Project Plan pursuant to § 3.08 of the DIA. Finally, § 3.11 of the DIA required that OHP and the Town enter into "an agreement regarding employee housing on the terms for Developer's compliance with Title 12 of the Town Code" on or before December 15, 2007. In light of the Town Council's rejection of the Timber Ridge option on March 18, 2008, it appears that this deadline has passed as well. In its April 14, 2008 letter, OHP states that it "continues to pursue the redevelopment of Timber Ridge, as that is 6/5/08 Q:IUSERSIVA1 WMIKAPLAN-LOLDOC June 25, 2008 Page 2 the employee housing plan contemplated by the Project Plan." However, based on the Town Council's recent decision, OHP must modify its Project Plan and pursue other employee housing options. Moreover, the Town Council recently adopted modifications to its employee housing regulations, and the modifications generally require that at least fifty percent (50%) of employee housing be constructed on-site. These modifications will apply to OHP's project. Therefore, OHP's employee housing plan must be modified to meet the requirements of the new ordinance. I look forward to discussing these issues with you at your earliest convenience. c: Matt Mire, Town Attorney 6/5/08 Q: iUSERSIVAILWLCIKAPLAN-LOLDOC