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HomeMy WebLinkAboutNorth Day Lot Public Works Town Council Memo 052008Memorandum to File March 2, 2009 Planner: Warren Campbell The information contained in this file pertains to the discussion which occurred regarding the collocation of a transit center and employee housing on the North Day Lot. After several design iterations and multiple public reviews it was determined that .the Town did not want to pursue anything more than skier drop-off and employee housing on the site, both of which were obligation of Vail resorts from the Arabelle project. These items are included with the approved plans for the North Day Lot simply to serve as a history for future inquiries regarding the North Day Lot. MEMORANDUM TO: Vail Town Council FROM: Public Works and Trans ortation De artm p p ent DATE: May 20, 2008 SUBJECT: Review of development options on the North Day Lot and a decision to proceed to the next steps for the preferred option. EXECUTIVE SUMMARY The town staff and Vail Resorts Development Company (VRDC), based on the approved amendments to the LionsHead Master Plan from April 15, 2008, have worked with the VRDC design team in preparing various options for a North Day Lot Transit Center. These will be presented for evaluation at the May 20th evening session. After a full review of the work to date, the questions to be answered to move the project forward are: 1) What transportation modes should be placed on the north day lot? 2) What are the alternatives if we don't place all the modes on the site? 3) How do we pay for it? 4) Next steps? The staff recommendations are: 1) Place all modes on the site which include skier drop off, shuttles, and transit, meeting as close as possible the recommended numbers required in the future. 2) No other alternative is needed except: if the LionsHead Parking Structure redevelops, move the transit vehicles to the LionsHead site if the design for the transit center is similar to the Open / Hillwood proposal. 3) Secure the remaining Federal dollars of $5 million; pursue other available transit funding sources; use Tax Increment Financing of $12 million; and if a shortfall still exists, cover the gap using capital, Real Estate Transfer Tax (RETT) or general funds. 4) Seta 60 day period to work with Vail Resorts, Inc. (VRI) to refine the design to better meet the needs of all involved; refine costs of the design; and prepare an agreement for council approval authorizing the town's intent to move forward with the project. 5) Modify the VRI Arrabelle housing agreement to adjust the schedule as appropriate. 6) Work with the surrounding properties to mitigate impacts. t II. PROBLEM STATEMENT According to the:.LronsHead Redevelopment Master Plan, y "The infi'~strubture of LionsHead (streets, walkways, transportation systems, parking, ijfilities, loading and delivery systems, snow removal and storage capacity) and. i#s public and private services must be upgraded to support redevelopment and revitalization efforts and to meet the service expectations of our guests and residents." Furthermore, staff has identified the following problems with the existing conditions in the LionsHead area: • The current LionsHead transportation situation lacks the type of facilities needed to provide world class resort guest experiences. This lack of adequate facilities and the impacts of the transportation system functions further impacts a majority of guests when they interact with and pass through where the transportation elements exist today. • The LionsHead core lacks a sense of arrival and entry. • Future demand will place additional burden on the lack of adequacy of current facilities. • The town's own LionsHead Redevelopment Master Plan states alternative modes are important for Vail's success and yet the town lacks proper facilities to encourage and meet their growth. • Utilization by current transportation operations at Concert Hall Plaza and LionsHead Center inhibit development of better pedestrian entry points. Project Policies • The master plans will be the guiding documents. • The use of creative financing will be pursued to the fullest. • To be a premier destination resort the town must meet or exceed guest experiences. Expectations are important. • The town must be prepared to move on opportunities as they present themselves. • As opportunities pass, they become irreversible. • It takes commitment, investment, risk taking and vision to remain competitive in the destination resort market. • Impacts of project development will be addressed during the project plan review • Timing is critical. Project Objectives • Address the transportation needs of LionsHead to meet future demands. • Clean up (remove chaos) at East LionsHead Circle and Concert Hall Plaza to provide a better arrival and guest experience. • Use Vail Reinvestment Authority (VRA) funds to invest in public facilities to enhance the overall redevelopment of LionsHead. • Mitigation of the negative impacts on adjacent residential uses will be an important aspect of the design. • Allow redevelopment opportunities to improve and enhance the eastern and western gateway entrances. These entry connection points become even more 2 important in the future as higher intensity projects, such as Sver Vail and a redeveloped LionsHead Parking Structure, evolve. • Introduce more pedestrian traffic from the north to increase economic vitality of LionsHead: the "North Street" concept. • Address the Americans with Disabilities Act (ADA) issues with the Concert Hall bus stop. • Keep transportation solutions next to the frontage road for efficiency; ease of discovery; smart urban planning regarding the pedestrians in ILionsHead; and future long term transportation opportunities. III. BACKGROUND The following information provides background for this discussion and summarizes the various actions taken by the town and others leading up to this decision point. • The Vaif Town Council adopted the LionsHead Redevelopment Master Plan on December 15, 1998. The Master Plan, in part, identifies the importance of improving public transportation in the LionsHead area. • The LionsHead Redevelopment Master Plan identifies the North Day Lot as the preferred location for public transit improvements in LionsHead. • March, 2004, the Vail Town Council created the LionsHead Urban Renewal Authority. The purpose of the Authority is to direct the future redevelopment of the LionsHead area and to establish a Tax Increment Financing District (TIF) as a funding source. • September, 2007, the Vail Town Council entered into a development agreement with Open/Hillwood Partners to redevelop the LionsHead Parking Structure. In conjunction with the redevelopment of the LionsHead Parking Structure, it has been anticipated that a public transit center would be part of the future development project. To date, the future development of the public transit center has been stalled in part due to the presence of a restrictive deed on the parking structure property precluding certain uses on the site. ~ December, 2007, the Vail Town Council directed Vail Resorts Development Company (VRDC) to develop the North Day Lot pursuant to the recommendations outlined in the LionsHead Redevelopment Master Plan (i.e., employee housing and public transit improvements). January, 2008, town staff presented the LionsHead Redevelopment Master Plan recommendations for the North Day Lot to the Vail Town Council. The Town Council directed VRDC to comply with the master plan recommendations for the site which includes employee housing and a transit center. The transit center would provide skier drop off, hotel shuttle drop off and public transit buses. February, 2008, VRDC submitted a development application for redevelopment of the North Day Lot which includes all of the stated uses and requested the town commit $14.3 million to fund the town's portion of the development for transit. 3 • On April 14, 2008, the Planning 8~ Environmental Commission (PEC) denied a request for a master plan text amendment to allow commercial development of the ground level of the North Day Lot. • On April 15, 2008, the Vail Town Council approved Resolution #9, Series of 2008, amending the detailed plan recommendations for the North Day Lot to include a public transit use on the entire ground level of the North Day Lot and to provide greater flexibility in the application of the prescribed development standards for the site. • On May 6, 2008, the Vail Town Council was briefed on the progress to date to modify the development application to comply with the master plan recommendations and provide various levels of public use. IV. GUIDING DOCUMENTS AND PLANNING POLICIES LionsHead Redevelopment Master Plan (in part) 2.1 Purpose of the Master Plan (in pan`) " (LionsHead) fails to offer a world class resort experience. " "This master plan is a comprehensive guide for ... municipal officials responsible for planning public improvements." 2.2 Definition of a Master Plan " It articulates a community's fundamental land use policies, principles, and goals in a broad and general way. It plans for the future physical development or redevelopment of an area of the community, including its functional and circulation systems and its public facilities." The land use policies in a master plan are generally implemented through zoning ordinances. Existing zoning and land use codes may be modified and new provisions enacted in order to conform to the master plan and carry out the plan's objectives. Through the adoption of the master plan, six fundamental design objectives were set that relate to the entire LionsHead study area. The six design objectives are: o The pedestrian environment, o Connections to the natural environment, o Vehicular circulation, o Transit, o Service and delivery, and o Parking According to Section 1.2 Master Plan Framework, Transit, 4 "The master plan considers that an efficient and flexible public transit system serving the entire LionsHead study area, including potential new development in the west end district, is essential to its (LionsHead] future. " Pursuant to Subsection 1.3.5, Transit, Recommended Actions, the master plan recommends the following actions be taken within LionsHead regarding public transit: o Create a transportation center on the North Day Lot to accommodate local and regional transit, local shuttles, and charter buses. o Remove the existing Concert Hall Plaza bus drop-off. o Relocate the existing LionsHead Place regional bus stop to the North Day Lot. o Improve the now difficult left turn from East LionsHead Circle onto the South Frontage Road. o Connect future development in West LionsHead to the Town of Vail in- town transit route. o Investigate alternative clean transit technologies. o Investigate potential interposal connections to futures non-vehicular regional transit system. In accordance with Subsection 2.3.5, Improved Infrastructure, Policy Objectives, the following policy objective is stated in the master plan: "The infrastructure of LionsHead (streets, walkways, transportation systems, parking, utilities, loading and delivery systems, snow removal and storage capacity) and its public and private services must be upgraded to support redevelopment and revitalization efforts and to meet the service expectations of our guests and residents." Chapter 4, Master Plan Recommendations -Overall Study Area, of the master plan states: "This section of the master plan addresses issues that affect LionsHead as a whole. These issues, and recommendations to address them, should be considered in all planning and policy decisions as LionsHead develops. To that end, the following sections and subsections of the master plan provide direction for consideration in all planning and policy decisions: 4.5 Public Transportation An efficient transit system is critical to the character and environmental quality of any pedestrian-oriented resort. Goals identified by the master plan regarding transit include: 5 4.5.2.3 Create a New Stop at the North Day Lot Transportation Center A new Town of Vail transit stop at the proposed transportation center on the North Day Lot will replace the existing stop at Concert Hall Plaza. Likely to be on the West Vail transit routes, this stop will coordinate with the regions/ bus stop and deliver West Vail transit riders to the newly created north LionsHead pedestrian portal. ., ~ ... }, +~, ~~~~ ~~ ~,, l ,.,,: /~ u }~ ~: __ F ;~, ,. 1+, ~ V ~~€ .srt.~J '- VANTAGE POt2V'T' EA5'T LIQN5HEAD C1Rt~.E ~ :., ~ig~e s-a - Poteir~ia/ TYatrsrt Point Pmvllel ~ South ~ Raad 4.5.3 Addressing Existing Problems 4.5.3.4 Concert Hall Plaza .-~- .-- 6 w~sx uo~s~u axcc.E It is recommended that the existing Concert Hall Plaza transit stop be eliminated. 4.6.6 Creation of a New Transportation Hub on the North Day Lot A principal component of the LionsHead transportation and circulation network is the creation of a transportation center on the North Day Lot. This facility will remove transit and service vehicles from other areas of LionsHead and create a major new entry point into the LionsHead pedestrian core. This concept is fully discussed in chapter five. Chapter 5, Detailed Plan Recommendations The master plan is not intended to limit or eliminate ideas relating to specific parcels; any proposal consistent with this framework should be considered even if it was not anticipated in this document. With that said, the master plan identifies the following detailed recommendations for the use of the North Day Lot. 5.9 North Day Lot a. "The North Day Lot should be developed as a community Transportation center to consolidate skier drop-off, local and regional transit, local and regional private shuttles, and charter bus drop-off and pick-up (see figure 5-13). A below-grade service and delivery facility could be constructed underneath the transit facility. By relocating these functions from their existing locations to one easily accessible location, this would improve the quality of vehicular and pedestrian circulation in LionsHead and create a significant new pedestrian portal into the center of the LionsHead retail mall. A critical consideration in the planning and design of Phis facility will be its impact on the adjacent Landmark Tower and Townhomes and the Westwind. Depicted in pgure 5-13a, a linear building is recommended at the southern edge of the site to screen the lower levels of the Landmark Tower from the Transit center. This facility could house a bus shelter and waiting area, an information center, public restrooms, a sma// food and beverage operation, and an elevator core to the pedestrian mall level for ADA access needs. To the east, earthwork, landscaping, and/or other screening measures should be considered to buffer the Westwind. A more comprehensive solution is fo cover The facility with another level or two of development -perhaps for offices or employee housing - or with a roof. (Memorable European antecedents exist for grand, covered transportation centers.) Specifically, the design of the transportation center should address all impacts: visual, security, sound, and smell that may affect adjacent properties. Both the Westwind and the Landmark should be closely involved in the transit center planning and design process. Chapter 9, Implementation 7 9.1 Project Prioritization 9.1.1.1 North Day Lot Transit Center a. It is a prerequisite for other critical projects. It will be impossible for other critical projects, or very nearly impossible, to proceed with other essential projects prior to the construction of the transit center, among them: o East LionsHead Pedestrian Portal o Concert Hall Plaza Redevelopment o Retail Expansion b. It will energize a new corridor into LionsHead from the north. 1998 estimate for the transit center was $10.1 million Vail Reinvestment Authority The Vail Reinvestment Authority (VRA) has prepared the LionsHead Public Facilities Development Plan, March 2004. The Vail Town Council adopted Resolution No. 11, Series of 2004, as per state statute approving the plan. Below is a list of projects that was sent to Eagle County as a part of the adopted project plan. The LionsHead Transit Center has been identified as an appropriate project for tax increment financing. The list of projects and their estimated use of TIF dollars includes: • LionsHead Transit Center $ 12.0 million Eagle County Rural Transportation Authority (ECO) and TOV buses, skier drop off and shuttles • Frontage Road Improvements $ 15.0 million • West LionsHead Circle Pedestrian Improvements $ 1.5 million • East LionsHead Portal $ 3.0 million • East LionsHead Circle $ 1.0 million Total $ 32.5 million Vail 20/20 (in part) Vision "... (Vail) has reinforced its transit oriented lifestyle. Transit, walking and biking are the major modes of travel along with extensive multi-model connections between major destinations... " Goal #1 "Create an integrated transportation system with high levels of service that caters to the many needs of our residents, guests, and employees... " • Ensure that all pedestrians have a quarter mile or less to walk from transit stops to major destinations. • Ensure that walking distances from high density residential areas to transit stops are one sixth of a mile (5 minutes). • Incorporate transit oriented development in mixed use developments. • Provide peak time line haul service of five to eight minutes. 8 • Provide outlying service of 15-20 minutes during peak times. • Coordinate with ECO to ensure service can be provided since demand is driven by Vail's aggressive parking management and travel demand management strategies. • Ensure that Vail's mass transit system is interconnected with the county and other regional systems. Vail Transportation Master Plan and Studies (in part) • The current pedestrian/vehicular conflicts at the LionsHead Parking Structure and LionsHead Mall are significant and should be addressed. • The lack of skier drop off needs to be addressed. • The in-town transit's ability to make the left turn from E=ast LionsHead Circle significantly hampers the service. • The growth of regional transit has outgrown the current facilities. • The mix of vehicles and uses at East LionsHead Circle and Concert Hall Plaza (West LionsHead Plaza) needs to be addressed. • Facilities need to be put in place to meet the projected future demand. • Charter buses will need to find a new location with any development of the Charter Bus Lot (east end of LionsHead Parking Struct:ure). Existing needs and future projections for the following transportation uses in LionsHead: Current Facilities Existing Need Future Proiecl:ion 1 in town 1 outlying 1 regional 4 shuttles 0 skier drop off 15 charter parking 1 in town route 2 outlying route 3 regional 4 shuttles 8 skier drop off 4 charter drop off 2 in town route 3 outlying route 4 regional 6 shuttles 12 skier drop off 5 charter drop off In order to accommodate the uses, the following long term recommendations are: • Hotel shuttles and skier drop off on North Day Lot, taking full advantage of all the public transit amenities left after initial construction of a transit center. • Town and regional buses placed at the redeveloped LionsHead Parking Structure. • In town route stays in front of the LionsHead Parking Structure. • Charter buses are accommodated at Ever Vail. Previous funding requests include: Colorado Department of Transportation (CDOT) 2035 statewide plan: Identified as the top transit center in the Intermountain Regional Transportation Plan (five county area) and the tenth highest rated project overall. Eagle County Capital Projects funding request: Requested for 2010, with Eagle County making commitments for the current budget year. 9 State Senate Bill 1 transit funds: The top rated project not to be funded at the time of the request because a specific site and timeline were not known, which were two critical rating criteria. Federal Transit Administration 5309 funding requests: The top transit facility in the. state transit coalition funding requests to Congress. All of these requests were based on an estimated cost of $15 million. V. FINANCING & FUNDING The following sources could be used to fund project costs of $15 to $19 million: Tax Increment Financing (TIF) bonds $12.0 million Federal Transit Administration 5309 funding already committed $ 1.4 million Subtotal $13.4 million Federal Transit Administration 5309 funding requested, not committed $ 3.4 million Eagle County capital funds requested but not committed $ 3.0 million CDOT funding through Senate Bill 1 (maximum total available $9M) $ 1.0 million The ,latest estimates of TIF funding are attached. The $12 million estimated bonding capacity is based on incremental property tax revenue generated by the Gore Creek Residences and the Arrabelle only and could be available to coincide with a spring 2009 construction start. The estimate further assumes bonds would be issued for 21 years, the remaining life of the TIF district, at 6% with a 20% debt coverage ratio. If Council chooses to use TIF funding for the transit center, additional bonding capacity, which will become available as new construction is completed, could be used for other projects within or with nexus to the LionsHead TIF district. Completion of the Ritz Carlton Residences, Lion Square Lodge North, and Landmark could generate a total of $15 million in 2012. Strata could generate an estimated $4.4 million in 2014 assuming a 2009 start of construction. EverVail, the LionsHead Parking Structure, and other projects such as the LionsHead Center, Lift House/Vail Arcade/Vail Pride, and Concert Hall Plaza could also create bonding capacity for future projects such as the Simba Run underpass. Federal Transit Administration 5309 funding of $5.0 million has been requested and $1.4 million of that amount has been awarded to Vail for a transit center. Eagle County funding has been requested through the county's budget process each year. However, commitments from the county are only made for the current budget year and our requests have been for 2010 as part of afive-year plan. This is currently bonded at $1.1 milliori dollars. Senate Bill 1 funding is currently slated as an additional $9 million for the entire state over two years and there is some discussion about cutting that amount. Avon received $2.5 million for a transit center project; however, the total funding available at that time was approximately $63 million over five years. 10 If none of the outside funding sources become committed to the transit center, Council could consider using funds from the Capital Projects Fund, the General Fund, and the RETT Fund (for park, path, and streetscape components). Additionally, Vail Resorts has an obligation from the Arrabelle development to provide skier drop-off, which could reduce the cost of the transit center to be born by the town. VI. WHY NOW? • The LionsHead Redevelopment Master Plan identifies the North Day Lot as the preferred location for public transit improvements in LionsHead. • LionsHead revitalization has begun, URA and TIF financing .are on track to produce over $ 27 million by 2012. • $ 5 million in federal dollars are in place to be delivered, after more than six years of lobbying efforts. • North Day Lot application is pending now. • State Senate Bill 1 transit funding requests for additional projects are due in July with a decision in September. A specific project with a specific si1:e and schedule that meets the funding period is critical. Staff would request funding if we move forward with transit on the North Day Lot. • The only other viable site left, the LionsHead Parking Structure, would be delivered in 2105 -2016 if planning were to start today. The current deed restriction prohibits moving forward for this use. This may never happen or a different development plan could evolve with a less superior transit center design. • Gas prices and parking demand are at all time highs. Alternative mode enhancement is the right decision to help address the issue and meet future demands. • Timing: LionsHead Parking Structure earliest delivery is 2016; East LionsHead portal could be ready for improvements; East LionsHead Circle is available for improvements; Concert Hall will be able to redevelop. It removes a major unknown regarding TIF project phasing and prioritization. Consequences of inaction • Federal dollars won't be available if we decline the current appropriation. • Utilization by current transportation operations at Concert Hall Plaza and LionsHead Center will continue to inhibit development of better pedestrian entry points. • Therefore the town will have given up federal bus dollars. The town can't switch to buses for FY 2008 and 2009. Therefore, the town loses three ways: the town doesn't receive bus dollars; the town gives back facility dollars; the town pays our share of our lobbyists' bill to secure the facility dollars. • TIF project prioritization stays unresolved because the town has too many unknowns. • Clock is ticking on TIF dollars: if the town doesn't do this, the town will begin to invest in the LionsHead Parking Structure, frontage roads and cleaning up the entries to East LionsHead and Concert Hall Plaza, all projects in which the town has developers interested in making investments. 11 • If the town began design on these projects today most would not begin construction until 2010 when the town will have $20-25 million in TIF dollars. Why Wait ? • May have more information about federal dollar commitments; however, the town may not have a site. • There may or may not be a resolution of the LionsHead parking structure. VII. EVALUATION OF THE ALTERNATIVES The attachment labeled North Day Lot Development Options is a side by side comparison of the four alternatives and provides a comprehensive evaluation. OPTION 1 TRANSIT DEVELOPMENT WITH EMPLOYYEE HOUSING AND BELOW GRADE PARKING Brief Description Option 1 provides four transit bays, nine skier drop off spaces, and 2-3 shuttle spaces. Buses and transit enter from the west side off West LionsHead Circle and exit to the frontage road. Skier drop off and employee housing enter off the frontage road and exit onto West LionsHead Circle. The employee housing is placed on the western portion of the site and parking is provided underneath the transit center. Layout/Circulation/Capacity The circulation patterns of Option 1 optimize traffic operations by dividing the movements in opposite directions. This allows a D Level of Service in all future operations for the buses and shuttles making left turns out of the site onto the frontage road. Skier drop off traffic heading west will be forced at some date in the future to use West LionsHead Circle to connect to the Ever Vail Roundabout to facilitate the left movement. In addition, all lefts from the West LionsHead Circle intersection will use West LionsHead Circle by the Marriott and the future Ever Vail roundabout. This pushes additional traffic crossing a major pedestrian connection between the Concert Hall Plaza entry and Ever Vail. This option requires a variance from CDOT for access spacing; however, CDOT has given a verbal approval if this is for public transit. Cost The cost of this option from VRDC is in the $15-19 million dollar range, which includes all administrative and financing fees. Neighbor Concerns and Mitigation Opportunities The transit is close to the adjacent neighbors. Landmark and Westwind are concerned about the proximity. The closeness of the transit requires a variance to construct a continuous enclosure wall along the Landmark property. A partial screen can be constructed under the current codes. In the future a building would buffer Westwind from 12 most impacts. Vertical circulation enhancements would benefit the neighborhood in addition to having adjacent in town bus access. OPTION 2 FULL TRANSIT DEVELOPMENT WITH EMPLOYEE HOUSING AND BELOW GRADE PARKING Brief Description Option B provides five transit bays, nine skier drop off spaces, and four shuttle spaces. The traffic patterns are similar to Option A with buses and shuttles entering from the west side off of West LionsHead Circle and exiting to the frontage road further to the east of option A. Skier drop off and employee housing enter off the frontage road and exit onto West LionsHead Circle. The employee housing is placed on the western portion of the site and parking is provided underneath the transit center. This layout allows buses to be four feet farther away from the south property line. Layout/Circulation/Capacity The circulation patterns of Option 2 optimize traffic operations by dividing the movements in opposite directions. This allows a D Level of Service in all future operations for the buses and shuttles making left turns out of the site onnto the frontage road. Skier drop off traffic heading west will be forced at some future date to use West LionsHead Circle to connect to the Ever Vail Roundabout to facilitate the left movement. In addition, all lefts from the West LionsHead Circle intersection will use West LionsHead Circle by the Marriott and the future Ever Vail Roundabout. This pushes additional traffic crossing a major pedestrian connection between the Concert Hall Plaza entry and Ever Vail. This option requires a variance from CDOT on access spacing as well; however, this variance has more deviation from the code than option 2. Cost The cost of this option from VRDC is in the $15-19 million dollar range which includes all administrative and financing fees. Neighbor Concerns and Mitigation Opportunities The transit. is four feet farther away from the south property line. The adjacent neighbors Landmark and Westwind are concerned about the proximity. A transit enclosure wall can be constructed along the Landmark property without a town setback variance. In the future a building would partially buffer Westwind from most impacts. Any podium overhead could be constructed and an enclosure wall could be connected down. Vertical circulation enhancements would benefit the neighborhood in addition to having adjacent in town bus access. OPTION 3 SKIER AND SHUTTLE DROP OFF WITH EMPLOYEE HOUSING (WEST) AND ON GRADE PARKING Brief Description This option removes the transit from the site and focuses on the skier drop off and shuttle drop off. It provides up to 5 shuttle spaces and 9-14 skier drop off spaces on the eastern portion of the property. The employee housing enters and exits the site from West LionsHead Circle. The skier drop off and shuttles enter and exit the site from the frontage road. The employee housing is placed on a podium on the western portion of the site and parking for the housing is on grade underneath the podium. 13 Layout/Circulation/Capacity The circulation patterns for Option C require that the skier drop off and shuttles enter and exit onto the frontage road. In the future, the Level of Service of this left turn, goes to Level of Service F and requires an alternative exit solution. The alternative would be the left turns during the peak hours would be restricted and all traffic would travel east. Those wanting to go west would use the future roundabout at East LionsHead Circle to turn around to go west. The travel time of this solution is the same as the traffic on West LionsHead Circle going past the Marriott to the Ever Vail roundabout. Cost The cost of this option from VRDC is in the $7-8 million dollar range which includes all administrative and financing fees. Neighbor Concerns and Mitigation Opportunities The large open area will need to be screened; however, due to no transit vehicles, there is less impact. To raise the skier drop off and shuttle areas up to the standards of the resort on this option, vertical circulation improvements would enhance the neighborhood. OPTION 4 SKIER DROP OFF ONLY WITH EMPLOYEE HOUSING (EAST) AND ON GRADE PARKING Brief Description This proposal removes the transit and shuttles from the site and provides space for 9 skier drop off spaces. All the site access enters and exits from West LionsHead Circle. The housing is split between on grade and podium, built on the eastern portion of the site. All employee housing parking is on grade with a portion underneath the housing and additional parking enclosed on the site. Layout/Circulation/Capacity Option 4 skier drop off traffic will need to find the entry to this area from the frontage road as no direct access will be provided. In addition, those accessing the spaces will need to drive through a residential parking lot to arrive at the skier drop off spaces. The ability to make this a welcoming entry and relay a clear message that this is the skier drop off for all of LionsHead will be a difficult challenge. Skier drop off traffic heading west will be forced at some date in the future to use West LionsHead Circle to connect to the Ever Vail Roundabout to facilitate the left movement. In addition, all lefts from the West LionsHead Circle intersection will use West LionsHead Circle by the Marriott and the future Ever Vail roundabout. This pushes additional traffic crossing a major pedestrian connection between the Concert Hall Plaza entry and Ever Vail. Cost The cost of this option is VRDC's obligation if it is determined to meet their skier drop off requirement Neighbor Concerns and Mitigation Opportunities Neighbors are not concerned due to elimination of transit. Screening of and covering of parking will be required. No pedestrian improvements from the mall will be constructed. VIII. COST DETERMINATION 14 Costs for the various options are comprised of different components th<~t make up the overall cost. These include: • Underground parking verses on grade parking for the employee housing component • Frontage road access and pedestrian overpass access modifications to meet ADA • Transit deck (lid) on any underground parking • On grade transit access improvements and pedestrian circulation improvements • Transit amenities such as rest rooms, heated waiting areas, transit ticket dispensing and vending dispensing • Screening and enclosures • Housing on a podium verses on grade • Vertical circulation from LionsHead Mall to the North Day Lot elf:vators, heated stairs and escalators for ADA access In addition to the hard costs, there are the direct costs of the general contractor on the project. This include misc. directs, general conditions, insurance and bonding requirements, fee and at this time a ten percent general contactors contingency. Some of these costs are directly related to time and as the length of the project completion increases the cost of the project goes up. There are also soft costs for the project performed by VRDC or by consultants. These include: • Project management • Professional fees for design, construction observation and testing • Fees for taps, plan review and project inspection fees we assume out sourced verses town of Vail performed • Builders risk insurance and liability insurance • Furniture, fixtures and equipment allowance • Warranty and project close out costs • Construction project financing • Legal fees to cover the cost of agreements between the town and Vail Resorts • Project contingency • Town of Vail owner representative to oversee the project from the town's prospective • Town contingency Not all of the options have the same components involved in the pricin<l. The way the cost at this time is calculated is that the difference between the costs to construct Option 4 verses the cost to construct any other option. IV STAFF RECOMMENDATION Listen to the presentation and use the goals and policies of the LionsHead Master Plan, the adopted Vail Reinvestment Plan and the update on the transportation plan regarding the future needs assessments and recommendations. Determine the answers to the questions we posed. After a full review of the work to date, the questions to answer to move the project forward are: 15 1) What transportation modes should be placed on the North Day lot? 2) What are the alternatives if we don't place all the modes on the site? 3) How do we pay for it? 4) Next steps? The staff recommendations are: 1) Place all modes on the site which include skier drop off, shuttles, and transit, meeting as close as possible the recommended numbers required in the future. 2) No other alternative is needed except: if the LionsHead Parking Structure redevelops, move the transit vehicles to the LionsHead site if the design for the transit center is similar to the Open / Hillwood proposal. 3) Secure the remaining Federal dollars of $5 million; pursue other available transit funding sources; use Tax Increment Financing of $12 million; and if a shortfall still exists, cover the gap using capital, Real Estate Transfer Tax (RETT) or general funds. 4) Seta 60 day period to work with Vail Resorts, Inc. (VRI) to refine the design to better meet the needs of all involved; refine costs of the design; and prepare an agreement for council approval authorizing the town's intent to move forward with the project. 5) Modify the VRI Arrabelle housing agreement to adjust the schedule as appropriate. 6) Work with the surrounding properties to mitigate impacts. ATTACHMENTS Vail Reinvestment Authority estimated tax increment financing worksheet North Day Lot employee housing units and Transit Options May 2, 2008, prepared by OZ Architecture Comparative worksheet Frequently asked questions 16 Frequently Asked Questions on Lionshead Transit Center If we do not put transit buses on the North Day Lot, what are the alternatives? We could clean up Concert Hall Plaza to function better; however, loading and delivery still operates from this site. There are major accessibility ADA issues. A revised layout doesn't meet today's demand, let alone future demand. Cost: $2 million Modify the Lionshead Parking Structure to accommodate the demands for shuttle and transit. This alternative removes significant parking spaces, reconfigures the entrance to the parking structure, improves the frontage road, raises code issues that must be addressed with the current parking structure and is the farthest site away from major destinations. Cost: $15-20 million Wait for the deed restriction to be modified to allow the redevelopment of the Lionshead Parking Structure and anticipate the development proposal at the time accommodates transit as the current Open Hillwood proposal does. Cost: $5 million If we do not put shuttle buses on the North Day Lot, what are the alternatives? If shuttles remain on East Lionshead Circle, reconstruct the East Lionshead Plaza to better accommodate shuttles. Cost $ 4 million If we don't put skier drop off on the North Day Lot, what are the alternatives? If a substandard skier drop off solution is not as successful for guest expectations and experiences, what are the alternatives? Construct a roundabout at East Lionshead Circle to accommodate traffic circulation and reconfigure the East Lionshead Plaza to function better Cost for both: $8 million What is the time line of the federal transit dollars? We have received $1.4 million in federal fiscal year (FY) 2008 and we have up to three years to spend the funds, including the year we have received them. We are expected to receive the remaining two payments in federal FY 2009 and federal FY 2010. If we don't use our federal transit dollars, can we use them for buses? No: The Colorado Association of Transit Agencies (CASTA) splits the federal request into two categories: rolling stock and facilities. If we do not use the facility funds, they would revert to the next transit facilities in the funding request line. We would have to get back in line for future years rolling stock. The earliest would be 2010 as the 2009 request is being finalized now. If we postpone the acceptance of federal transit dollars, can we receive dollars in the out years? It is very unlikely we would receive them when we would need them. CASTA prioritizes projects amongst all agencies within Colorado. There is a waiting list of agencies who have projects competing for limited funds. Vail will have a hard time convincing the coalition we can deliver on a future project based on our failure the first time. What additional administrative requirements are necessary when federal transit dollars are used for the construction of the transit center? There is an environmental clearance process during design. The project must be bid. There are disadvantage business enterprise milestone goals that need to be met. Minimum wage requirements for various job skills used on the job must be met. There are reporting requirements regarding all payments and goal compliance. What ADA requirements are triggered with transit being placed on the North Day Lot regarding vertical separation to the Lionshead Mall? All the new construction would need to meet (ADA) laws and requirements. In addition, the accessible route from the transit center to the destination would be reviewed. This means that an elevator would be required to make the route accessible to the Mall. Shuttles? The new construction would need to meet ADA requirements; however, the complete accessible route would not have to be enhanced if there is a reasonable alternative solution. This alternative is continued use of the Subway site for accessibility needs and the use of the town's pars-transit service to meet any other needs. Skier drop off? The new construction would need to meet ADA requirements: however, the complete accessible route would not have to be enhanced if there is a reasonable alternative solution. This alternative is the accessible parking spaces on the Lionshead Center lot. We would need to memorialize a permanent easement so these spaces are available for all future ADA users. Does all the Tax Increment Financing get expended with this project? No. The first $12.1 million is used in 2009 with this project. There is $15 million available in 2012 and likely another $ 4.4 million available in 2014. What are our chances on future federal dollar commitments? The federal dollars received by Colorado are split 60% for rolling stock and 40% for major transit facilities. Colorado has received from $4 million to $14 million dollars with an average around $10 million dollars per FY. Vail is sharing the facilities dollars with one or two entities for most years. Vail Reinvestment Authority Estimated Bonding Capacity Assessed Average Annual Bonding Capacity Project Valuation Mill Levy Revenue 2009 2012 2014 Arrabelle & Gore Creek Place 27,218,000 45.555 1,240,000 12,156,000 Ritz Carlton Residences 32,647,660 45.555 1,487,000 13,417,000 Lions Square North 1,916,000 45.555 87,000 785,000 Landmark 2,232,000 45.555 102,000 920,000 Strata 11,569,000 45.555 527,000 4,438,000 Total 75,582,660 3,443,000 12,156,000 15,122,000 4,438,000 Assumptions: Bonds are issued for the remaining life of the TIF district - 21 years for bonds i ssued in 2009; 18 years for bonds issued in 2012; and 16 years for bonds issued in 2014 Interest rate is 6% Required debt service coverage ratio is 20% C:\DDCUME-1 WDMINI-1\LOCALS-11Temp\XPgrpwise1080520 North Day Lot TIF 5/19/2008 Vail Reinvestment Authority Estimated Property Tax Increment and Bonding Capacity Budget Year Assessment Year Step 1: Changes in value from prior year due to redevelopment New construction (Arrabelle) Adjustment for appeals Prior exempt, now taxable Demolition Prior taxable, now exempt Net Increase due to redevlopment Step 2: Percentages attributable to Prior Base and Prior Increment Total valuation -prior year Prior base baluation Prior increment Prior base percentage Prior increment percentage Step 3: Detemine Adjusted Reappraisal Valuation Current valuation after reappraisal & new construction Less: increase due to redevelopment Adjusted reappraisal valuation Step 4: Apportionment for Adjusted Base and Increment Current Adjusted reappraised valuation Adjusted new base Adjusted increment Step 5: Determine total increment for current year Adjusted increment from step 4 Plus increment due to redevelopment Total increment for current year New base for current year Increment for current year Total TIF area valuation for current year Average TIF Mils Estimated TIF revenue Estimated amount of bonds at 6% until 2030 with 20% coverage ratio issued in 2009 2008 2007 17,025,210 (3, 742,898) 13,282,312 64,403,140 57,612,720 6, 790,420 89.456% 10.;544% 121,734,684 (13,282,312) 108,452,372 108,452„372 97, 017,.154 11,435,218 11,435,218 13,282,312 24, 717, 530 97, 017,154 24,717,530 121, 734, 684 45.,'i50 1,125, 000 C:IDOCUME-1\ADMINI-1\LOCALS-11TemplXPgrpwise1080520 North Day Lot TIF_1 2009 2008 2,500,000 2,500,000 121, 734, 684 97,017,154 24, 717, 530 79.70% 20.30% 124,234,684 (2,500,000) 121, 734, 684 121,734,684 97,017,154 24, 717, 530 24, 717, 530 2,500,000 27,217,530 97,017,154 27, 217, 530 124, 234, 684 45.550 1,240,000 12.1 5/19/2008