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HomeMy WebLinkAboutPEC080045Planning and Environmental Commisson ACTION FORM T~~IVQ~YAiL oonnurutt oeve~oor,~ENr Department of Community Development 75 South Frontage Road, Vail, Colorado 81657 te1:970.479.2139 fax: 970.479.2452 web: www.vailgav.com Project Name: TOV EHSP PEC Number: PEC080045 Project Description: REVIEW AND INPUT ON TOV EMPLOYEE HOUSING STRATEGIC PLAN Participants: OWNER TOWN OF VAIL 08/04/2008 C/O FINANCE DEPT 75 S FRONTAGE RD VAIL CO 81657 APPLICANT TOWN OF VAIL 08/04/2008 C/0 FINANCE DEPT 75 S FRONTAGE RD VAIL CO 81657 Project Address: 111 S FRONTAGE RD WEST VAIL Location: Legal Description: Lot: Block: Subdivision: Unplatted Parcel Number: 2101-064-0000-4 Comments: BOARD/STAFF ACTION Motion By: Action: APPROVED Second By: Vote: Date of Approval: 09/02/2008 Conditions: Cond: 8 (PLAN): No changes to these plans may be made without the written consent of Town of Vail staff and/or the appropriate review committee(s). Cond: 300 (PLAN): PEC approval shall not be not become valid for 20 days following the date of approval. Planner: Nicole Peterson PEC Fee Paid: $0.00 n Application for Review by the ~~ Planning and Environmental Commission ~~U~ 4'.! ~ Department of Community Development 75 South Frontage Road, Vail, Colorado 81657 te1:970.479.2139 fax: 970.479.2452 web: www.vailgov.com General Information: All projects requiring Planning and Environmental Commission review must receive approval prior to submitting a building permit application. Please refer to the submittal requirements for the particular approval that is requested. An application for Planning and Environmental Commission review cannot be accepted until all required information is received by the Community Development Department. The project may also need to be reviewed by the Town Council and/or the Design Review Board. Type of Application and Fee: ^ Variance $500 ^ Conditional Use Permit $650 ^ Sign Variance $200 ^ Floodplain Modification $200 ^ Rezoning $1300 ^ Minor Exterior Alteration $650 ^ Major Subdivision $1500 ^ Major Exterior Alteration $800 ^ Minor Subdivision $650 ^ Development Plan $1500 ^ New Special Development District $6000 ^ Amendment to~a Development Plan $250 ^ Major Amendment to an SDD $6000 ^ Zoning Code Amendment $1300 ^ Major Amendment to an SDD $1250 (no exterior modifications) .~ De,~crip ion of the Request: ~ ~-~. ~~ t ~ ~'~ ~`~ ~~. ~ ~~~`i~ ~ ~ ~ ~ '~ ~~E~ r ~ ~/ •~q u S ~ f.+,~ ~.: ~ `~ i~ ®.+ ~ l~ ~~ ~ „ar' ~l ~. _ .. k d ~TM~'~ ,,.q ; °~'1 ''~' J~ ~.tf r' ~~ .H.,,~.,a' £^i ,.b• q YF 1/ F~-~' ~) k~' ds.. 8 i ~ 'E~` 1 s`'P ,p ~ 1J'la ~~i i . s t Location of the Proposal: Lot: `° ``Y ..-Block: Subdivision: Physical Address: ~.°`~: ~~ t°` Parcel No.: ~°'<< ~ .'~.r ~ (Contact Eagle Co. Assessor at 970-328-8640 for parcel no.) Zoning: ~+ ~~ ~~f~ • - ~ Name(s) of Owner(s): ~'~~`~~'~~ ~ ~ ~~~'' t~.... ~ ~ t~ Mailing Address: ~ ~~;~ ~~~~ p~~~. ~.°~ 8_ . u Phone: Owner(s) Signature(s): Name of Applicant: # ~~° ~' ° - W $ ° ~ .~, ~ ~ a ~,~ ~ a Mailing Address: E ~~ ~ • a ~ , ~ ~~~ .~ :~~ ~. ;~~ i ~ ~; ~ ~,.~~ ~ ~- ~~ Phone: ° ° ~-~j -~~'~ . , ¢ r ~ E-mail Address: ~~a~~°~ ~ ~~ ~ ~"~~ s ~.:' ~ ' '~~ zt ~~~~"`lax ~' y'1~ For Office Use~nly: Fee Paid: ~` Check No.: By: Meeting Da e• f PEC No.: PEGO~ Planner: ~ Project No.: ~ .JO-~ " (~ 3S'/Q F:\cdev\FORMS\Permits\Planning\PEC\development~lan_amend.doc Page 1 of 7 12-28-05 MEMORANDUM TO: Vail Town Council FROM: Community Development Department DATE: September 2, 2008 SUBJECT: A request for final review of Resolution No. 20, Series of 2008, for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. Applicant: Vail Local Housing Authority and Town of Vail, represented by Nina Timm, Housing Coordinator Planner: Nicole Peterson DESCRIPTION OF THE REQUEST The Vail Local Housing Authority and Town of Vail, represented by Nina Timm, Housing Coordinator are requesting final review of Resolution No. 20, Series of 2008, for the adoption of the Town of Vail Employee Housing Strategic Plan (EHSP), and setting forth details in regard thereto. Please see attached Resolution No. 20, Series of 2008 (Attachment A). II. BACKGROUND At the January 22, 2008, Town Council retreat the Town Council identified the completion and adoption of a Housing Strategic Plan by September, 2008, as an immediate goal. In response to the Council's objective, the Vail Local Housing Authority (VLHA) has created a draft Employee Housing Strategic Plan (Attachment B). At the August 25, 2008 Planning and Environmental Commission meeting, the Commission was requested to make recommendation to the Council regarding the adoption of the EHSP. The Commission requested that their comments be forwarded to the Council without formal recommendation. Please see attached Staff memorandum (Attachment C) and minutes (Attachment D) of the August 25, 2008 Planning and Environmental Commission meeting. III. ACTION REQUESTED OF COUNCIL The Community Development Department recommends the Vail Town Council approves Resolution No. 20, Series of 2008, for the adoption of the Town of Vail Employee Housing Strategic Plan. Should the Town Council choose to approve Resolution No. 20, Series of 2008, for the adoption of the Town of Vail Employee Housing Strategic Plan, the Community Development Department recommends the Council pass the following motion: •~ "The Vail Town Council approves Resolution No. 20, Series of 2008, for the adoption of the Town of Vail Employee Housing Strategic Plan" Should the Town Council choose to approve Resolution No. 20, Series of 2008, for the adoption of the Town of Vail Employee Housing Strategic Plan, the Department of Community Development recommends the Council makes the following findings as part of the motion: "1. That the Employee Housing Strategic Plan is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, 2. That the Employee Housing Strategic Plan furthers the general and specific purposes of Zoning Regulations; and, 3. That the Employee Housing Strategic Plan promotes the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. " VII. ATTACHMENTS A. Resolution No. 20, Series of 2008 B. Draft Town of Vail Employee Housing Strategic Plan C. Staff memorandum to the PEC dated August 25, 2008 D. Minutes of the August 25, 2008 PEC meeting 2 ATTACHMENT A RESOLUTION NO. 20 Series 2008 A RESOLUTION ADOPTING THE TOWN OF VAIL EMPLOYEE HOUSING STRATEGIC PLAN; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town of Vail (the "Town"), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the "Charter"); and WHEREAS, the Town has determined that no less than thirty percent (30%) of Vail's workforce should be provided deed restricted employee housing within the Town limits; and WHEREAS, the Council has determined that in order to achieve the established goal it is critical to create an employee housing strategic plan establishing and clarifying the objectives and action steps essential to achieve the stated goal; and WHEREAS, the Vail Local Housing Authority and Council developed the Employee Housing Strategic Plan over a period of six months that outlines the goal, objectives and action steps; and WHEREAS, the Vail Economic Advisory Committee provided input and direction on the Employee Housing Strategic Plan at their May 13, 2008, and June 10, 2008, meetings; and WHEREAS, the Planning and Environmental Commission provided input and direction on the Employee Housing Strategic Plan at their August 25, 2008, Public Hearing; and WHEREAS, the Council supports the implementation of the Vail Employee Housing Strategic Plan; and WHEREAS, the Employee Housing Strategic Plan will direct policy and budget decisions in order to achieve the community's stated goal; and WHEREAS, it is the intention of the Council and the Housing Authority to implement the Employee Housing Strategic Plan over the next three years. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: The Council hereby approves the Town of Vail Employee Housing Strategic Plan, dated September 2, 2008, attached hereto as Exhibit A. 2. The Council hereby finds: A. That the Employee Housing Strategic Plan is consistent with the applicable elements of the adopted goals, objectives and policies 3 outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, B. That the Employee Housing Strategic Plan furthers the general and specific purposes of Zoning Regulations; and, C. That the Employee Housing Strategic Plan promotes the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality 3. This Resolution shall be effective immediately upon adoption. INTRODUCED, READ, APPROVED AND ADOPTED this 2nd day of September, 2008. Richard D. Cleveland, Town Mayor ATTEST: Lorelei Donaldson, Town Clerk 4 ATTACHMENT B TCIWNOFVM. Employee Housing Strategic Plan "To ensure there is deed restricted housing for at least 30% of Vail's workforce within the Town of Vail" September 2, 2008 Adopted by Resolution No. 19, Series of 2008 In acknowledgement of the commitment to ensure deed-restricted housing options for at least 30% of Vail's workforce within the Town of Vail. Vail Town Council Dick Cleveland, Mayor Andy Daly, Mayor Pro-Tem Kevin Foley Mark Gordon Farrow Hitt Kim Newbury Margaret Rogers Planning and Environmental Commission Bill Pierce, Chair Rollie Kjesbo, Co- Chair Michael Kurz Sarah Paladino Scott Proper Susie Tjossem David Viele Local Employers Vail Resorts, Inc. Town of Vail Vail Valley Medical Center Tivoli Lodge Marriott Resort Vail Cascade Hotel and Spa Vail Plaza Hotel Troy's Ski Shop Vail Plaza Hotel Sonnenalp Hotel Sweet Basil RRC Associates, Inc Chris Cares ~t~Y~G 2 Vail Local Housing Authority Mark Ristow, Chairman Sally ]ackle Steve Lindstrom Ethan Moore Kim Newbury Vail Economic Advisory Council Mark Gordon Dick Cleveland Alan Koslof Bob Boselli Greg Moffet Rick Scapello Robin Litt Sally Hanlon Bill Jensen Rob Levine M. Joseph McHugh Pam Stenmark Mark Cervantes Matt Morgan Brian Nolan Steve Kauffman Tori Franks Rayla Kundolf Bob McNicols Employee Housing Strategic Plan Table of Contents Purpose 5 Time Frame 6 Threats, Weaknesses, Strengths, & Opportunities 6 Objectives 9 Policy Statements 1l Action Steps 12 Implementation Matrix 19 Roles and Responsibilities 21 Appendix 23 a. Glossary b. Resolution Adopting the Employee Housing Strategic Plan (to be added upon adoption) c. Process Timeline d. Existing ~~Conditions"Survey Results (to be added upon completion) ,, 3 Employee Housing Strategic Plan TOWN OF VAIL EMPLOYEE HOUSING STRATEGIC PLAN BACKGROUN D In 2006, through the Vail 20/20 Focus on the Future process the community established a housing goal. It is as follows: "The Town of I/ail recognizes the need for housing as infrastructure that promotes community, reduces transit needs and keeps more employees living in the town, and wi/l provide enough deed-restricted housing for at /east 30 percent of the workforce through policies, regulations and publicly initiated deve%pment. " Based upon the community's work, the Vail Town Council has confirmed the Town of Vail recognizes deed restricted employee housing as basic infrastructure. This type of housing allows employees to live within the town, promoting community, and improving the quality of our local workforce, thereby supporting the local economy, and reducing regional transit needs. The Employee Housing Strategic Plan (EHSP) seeks to meet the expectations established by the community and confirmed by the Town Council and provide enough deed-restricted housing for at least 30 percent of the community's workforce to live in the Town of Vail through a variety of policies, regulations and publicly initiated development projects. PURPOSE The EHSP is adecision-making guide for the implementation of employee occupied housing programs. The EHSP documents the Town's current approaches to ensuring employee housing. It identifies the goal, outlines methods and defines action steps the Town will pursue. In addition, the Appendices provide background information on Town housing definitions, policies, and initiatives. This information is provided as an additional resource. The EHSP also recognizes and affirms the importance of Vail constantly serving as a regional partner in the provision of employee housing. fv;~ a 5 Employee Housing Strategic Plan The EHSP is meant to lead the actions of Staff, the Vail Local Housing Authority and the Vail Town Council in future decisions regarding funding and development of employee housing in Vail. PLANNING TIMEFRAME The EHSP is based on a five-to-ten year planning horizon; it looks well into the future anticipating the needs for employee housing over time. The EHSP also contains identified ~~action steps" targeted for a one to three year period. These action steps will need to be evaluated annually and it is anticipated that they will be updated at least every three years as market conditions change. THREATS, WEAKNESSES. STRENGTHS & OPPORTUNITIES It is important to recognize and plan for the threats, weaknesses, strengths and opportunities that exist in the Town of Vail as well acknowledge the broader trends that impact Vail. Threats ^ Increasing Competition For Employees o Within the next ten-years: / Conservative estimates predict 2,000 new jobs will be created by development and redevelopment within the Town of Vail - The majority of these jobs will be service sector / It is estimated that at least 7,500 new jobs will be created between Eagle Vail and Gypsum in the next ten years - The majority of the these jobs will be service sector / It is estimated the Ginn Development will add 1,000 new jobs / Lake County and Garfield County are both experiencing job growth - The oil and gas industry and mining generally pay substantially more than the service jobs being created in Eagle County / State of Colorado predicts overall job growth of 23% (DOLA) OFY.' 6 Employee Housing Strategic Plan • Real Estate Trends o Real estate in the Town of Vail is expensive as compared to the rest of the region as well as compared to the national market o The conversion of locally occupied housing to second homes o The free market focuses on the housing desires of second homeowners o Increasing cost of construction o Local real estate values continue to trend upward o The gap between what locally earned wages can afford and free market housing prices continues to increase ^ Unique Geographic Constraints o Vail Pass on the East o Dowd Junction on the West o Limited undeveloped land within the Town of Vail o Surrounded on the north and south by National Forest and Bureau of Land Management lands o Farthest employment center from the Eagle County population base ^ Cost of Commuting o The cost of gas continues to increase o Public transportation does not provide a viable alternative to all communities o The availability and cost of parking is prohibitive Weaknesses ^ Politics o Historical lack of political will for developing new employee housing o Previously, no clear policy direction for the provision of employee housing o Lack of Town owned land zoned for employee housing o There is not dedicated funding for employee housing o At the beginning, failure to plan for the housing needs of Vail employees 'N~V;d~ ~ 7 Employee Housing Strategic Plan ^ Real Estate Market o Lack of free market homes affordable to local employees o Potential home buyers get less "bang for the buck" in Vail as compared to the region o Deed restricted housing developed does not provide a full spectrum of housing types (i.e., single family homes and seasonal rental units) ^ Lack of permanent employees hired by local businesses o The jobs being generated by redevelopment are predominately lower paying seasonal service jobs o Added challenge to establishing a diverse community Strengths ^ Community support for creating new employee housing ^ Clarity around the Town's adopted housing goal ^ Regulatory requirements o Commercial Linkage o Inclusionary Zoning ^ Vacant land owned by the Town ^ Strong local financial conditions o Bonding capacity o Strong local tax base o Potential to invest in employee housing ^ Regular private reinvestment in development ^ Expanding partnership opportunities with local businesses and governments ^ Current deed restricted housing stock ^ The °Vail" brand Opportunities ^ Town Initiated o Employee Housing Strategic Plan o Town owns significant vacant land o Rezoning of Town owned vacant land o Land Use Plan amendments o Annexation of land adjacent to the Town ~l'iV~Y,~ 8 Employee Housing Strategic Plan o Ability to reallocate existing revenue o Bonding capacity o Ability to go to the voters for a dedicated funding source o Partnerships with local employers o Public-Private partnerships for development o Potential United States Forest Service Land Swaps ^ Regional Opportunities o Other local governments are addressing the housing need as wel I o Significant vacant land o Partnerships with local employers o Public-Private partnerships for development o "The Valley Home Source" ^ Current stagnation in real estate values OBJECTIVES A. Provide housing to address needs generated by new development or redevelopment. It is documented and understood that new development will require additional employees and a goal of the EHSP is to provide for that housing. This goal is also referred to as '~ Keep Up" in the EHSP; going forward the Town will attempt to address the increase in demand from new employees by requiring deed-restricted housing as a condition of new development or redevelopment. The Town will encourage developers to provide a range of housing choices for the entire spectrum of jobs that are being created by the new development. B. Respond to the existing affordable housing shortfall by pursuing a number of identified programs and development opportunities. This goal is also referred to as °Catch Up" in the EHSP; it describes efforts to address deficiencies in the available housing inventory that have arisen over a period of years. ,, VN~~APi, 9 Employee Housing Strategic Plan C. Call for any deed-restricted housing that is required as a condition of development to be constructed at the time new development occurs. By dispersing year-round housing multiple objectives are met: neighborhoods are occupied throughout the year enhancing security and encouraging activity. Economies are achieved by having developers integrate deed-restricted housing at the time they are constructing other uses, and construction of new residences occurs at the time the demand is first triggered. D. Creation and maintenance of housing in Vail for emergency and key service workers. In Vail, where weather and the regional road system create periodic strains, this is especially important. The Town will also work with other businesses that provide services essential to municipal operations to encourage they have critical employees living within the Town of Vail. The Town will offer partnership opportunities to these types of employers. E. Actively address affordable housing for Vail workers to ensure that the community remains competitive in economic terms. With the number of Down-Valley jobs continuing to increase, there will be competition for workers; Vail will work to provide appropriate housing to ensure that the Town remains attractive in the regional job market. F. Increase and maintain deed-restricted housing within the Town to encourage the efficient use of resources by placing employees closer to their place of work. It is understood there is a reduced need for personal automobiles and reduced transit costs when home and work are in close proximity to one another. Also, there may be changes in workforce demographics that result in opportunities to reduce parking associated with affordable housing in selected locations. To the extent these opportunities can be realized, without negative impacts on the overall community, they will be explored. j ~~~~ p. 10 Employee Housing Strategic Plan G. Planning for new employee housing will take jobs and wages into account. It is recognized that wages associated with a particular job influence housing demand. In both catch-up and keep-up programs the Town will work toward providing a range of housing types at price points appropriate to the varying incomes of workers in Vail. It is recognized the free market provides limited opportunity for even the highest wage earners to live and work in Town and it is necessary to have a full range of employees in the community. Diverse housing opportunities for the broadest range of employees will enhance the community. H. Provide and plan for housing along with local and regional public transportation. The EHSP recognizes that these functions are intertwined and where deed-restricted housing exists, there will be a demand for transportation services. It is the goal of the Town to minimize overall transportation costs by housing employees in proximity to their jobs, and to also anticipate the projected costs of transportation (due to fuel and other scarce resources) in the provision of deed-restricted housing elsewhere in the region. POLICY STATEMENTS The Town of Vail will pursue three broadly described methods to achieve the Town's housing goal. Regulatory Requirements will be Imposed by the Town ^ Development will be required to address a portion of its housing demand within the Town of Vail; and ^ New development and redevelopment will be required to address a portion of its housing demand at the development site. The Town will Initiate Development and Acquisition ^ To address employee housing needs beyond the regulatory requirements for new development; and ^ To respond to the desire to promote a more diverse and vibrant local community. T~N~VA(G 11 Employee Housing Strategic Plan Regional Partnerships will be formed ^ These efforts will address employee housing needs beyond the regulatory requirements by actively seeking partnerships, including: i. Public /Private, and ii. Multi Jurisdictional. These broad methods are further addressed in the Action Steps that are described in the following section. ACTION STEPS The Town will continue to use tools already in place including: Regulatory Requirements: The "Linkage" or Commercial Jobs Generation Program The Town will review the current linkage program to evaluate whether it has been meeting the objectives of ensuring that new housing is being created to house a portion of the employee demand that is being generated by new commercial uses in the Town. At this time, no immediate changes in the overall requirements of the program are anticipated. However, the current requirement for new commercial development to provide employee housing for at least twenty percent (20%) of the employees generated may be reevaluated and the required percentage may be changed as a result of the review, the areas of impact may be modified, and the formulas for calculating job generation rates may be further refined. Additionally, an updated Rational Nexus will need to be completed on a periodic schedule. The Linkage Program provides housing to "keep up" with new demand as it is generated. Achieves Objectives A, C, E, F, and G. The "Inclusionary" Program The Town does not anticipate major changes to the Inclusionary Housing program at this time. However, the current requirement to restrict 10 percent (10%) of new residential square footage in high density areas to be employee housing with deed restrictions, may be reevaluated and the ~Y;~ " 12 Employee Housing Strategic Plan required percentage may be changed as a result of the evaluation, and/or the areas (zone districts) of impact may be modified. The Inclusionary Program provides housing to "keep up" with new demand as it is generated. Achieves Objectives A, C, E, F, and G. Housing District Zoning Designation The Town currently has a °Housing District" zoning designation. As an action step to implement the Housing Plan, the Town will review the requirements of this district to ensure that it is fully meeting its intended purposes. That review will address the procedural requirements for the Housing District, land use provisions including density, parking and design standards, and provisions for density bonuses. The evaluation of the Housing District will ensure the Housing District provides optimal employee housing development. Achieves Objectives B, D, E, F, and G. Town Initiatives: Buy-Downs to Generate Deed-restricted Units The Town will actively pursue purchase of attractively priced units for imposition of an appreciation capped deed restriction, and subsequent resale. This technique for increasing the supply of permanently affordable housing is known as a °buy down." It is recognized that this program will be highly market dependent, with limited applicability when the local residential market is surging, and becoming more attractive at times when there is a plateauing of prices. The Town will need to increase the allocation of funds to underwrite the costs associated with purchasing, deed restricting and reselling for-sale units. This is an opportunity to provide diverse housing, to serve the full spectrum of employees. It is important to update the parameters by which buy down units are considered so each buy down unit meets the established goals. Further, it is expected that there will be active involvement by the Housing Authority in overseeing this program. The Buy-Downs program provides housing to ~~catch up" with existing deficiencies and reduce market leakage. Achieves Objectives B, D, E, F, and G. YN~V~ . 13 Employee Housing Strategic Plan Employee Housing Units Exchange Program The Town will conduct a review of the ~~dispersed housing units" that have been created under the density bonus provisions allowed by Town Code since 1982. It is estimated that X)OC units were created under the existing program, typically ranging in size from 300 to 500 square feet. It is believed that many of these units are not being used to house employees as anticipated by the program. Although these units are covered by various types of deed restrictions, the requirements are not uniform and in many cases are not meeting the objective of providing long-term dispersed employee housing. The Town will evaluate the current program and will consider a "deed restriction exchange program" as a part of this overall effort. The program would likely permit, at the initiation of the landowner, the exchange of small rental units for a larger for-sale, price appreciation capped employee housing unit. Guidelines for the program will be developed. It is expected that these standards will address recommended size of units, location, homeowner's fees and other aspects of the program. Such a program has been recently tried in Vail. It is believed that other dispersed employee units, not currently in use, could be leveraged into permanently restricted units by using this technique; it could represent an important element of this overall plan. The Units Exchange Program is to increase the quality and the total quantity of employee housing within the Town of Vail. Achieves Objectives B, E, F, and G. Incentive Zoning and Density Bonuses The Town will consider workforce housing objectives in all review processes that permit discretion. This means that the Town will work actively with developers as a part of the Housing District, Special Development District review processes and requested changes in zoning to not only meet the requirements of existing code, but to look for opportunities to go beyond code requirements to encourage additional workforce housing to be created. As a part of these review processes the Town will work actively with developers to create incentives to develop housing that exceeds the minimal requirements contained in the code. Additional density may be granted in selected locations through the appropriate review processes, and fee waivers and subsidies may be considered. The Incentives Zoning and Density Bonuses help Vail to 'catch up" with existing deficiencies and add to the overall percent of employees living within the Town of Vail. ~., ~~~~ 14 Employee Housing Strategic Plan Achieves Objectives B, D, E, F, and G. Review Rezoning and Vacant Land Opportunities The Town will regularly review existing codes and the vacant land inventory to identify opportunities to modify current programs that further support the goals of this Plan. The Review of Rezonings and Vacant Land provides "catch up" opportunities to address existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, and G. Town Participation in Developments Providing Deed-Restricted Housing The Town is prepared to actively participate in, and will seek partners to further the development of deed-restricted housing. Vail Commons, Middle Creek, Buzzard Park and Miller Ranch (located near Edwards in Eagle County) are four relatively large developments that have been completed through active Town participation. The existing developments serve households at different income levels. This has been, and will continue to be an objective of the Town, to serve the broad spectrum of need within the community rather than focusing on just a narrow category of income or household type. The Town participation provides "catch up" opportunities to address existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, G, and H. Pursue a Dedicated Funding Source For Employee Housing Initiatives The Town will pursue a dedicated funding source to ensure adequate and ongoing resources for employee housing initiatives. It is recognized the Town will play an integral role in the creation of employee housing and dedicated dollars will aid in these efforts. The Town may pursue any of the following funding alternatives: a dedicated sales tax increase, a dedicated mill levy increase, dedication of the Real Estate Transfer Tax or any other funding source that may be identified. A dedicated funding source would provide "catch up" housing opportunities for Vail workers. ,, 15 Employee Housing Strategic Plan Achieves Objectives B, D, E, F, G, and H. Create an Existing Residential Conditions Base Line in the Town of Vail Conduct a comprehensive study of current units. Identify the type of units that exist (i.e. studio, one-bedroom, etc.), each unit's current use (i.e. employee occupied, short-term rental, etc.), and the ownership of the unit (i.e. owner-occupied, tenant occupied, etc.). This data will establish the baseline against which future employee housing success will be measured. The baseline conditions will support both "catch up" and 'keep up" efforts. Achieves Objectives A, B, C, D, E, F, G, and H. Monitor the Rate of Free Market Employee Occupied Homes The Town will monitor the rate of free market homes occupied by local workers, and deed-restricted homes, on a regular basis. Conversions of free market residential units to second home owner units will be considered in Vail's evaluation of progress toward the goals identified in this Plan. This monitoring will support both "catch up" and ~~keep up" efforts. Achieves Objectives B, E, F, and G. Conduct a Demographics Survey of Current Vail Residents In order to better understand the current demographics of the local population it is necessary to conduct a local survey. This will provide the Town with back ground information to consider in future housing policy and development decisions to ensure the Town is maintaining a character that is as diverse as it is today. This may occur in conjunction the Annual Community Survey. This information will support "catch up" efforts. Achieves Objectives A, B, D, E, F, and H. 16 Employee Housing Strategic Plan Establish a List of Essential Service Providers in the Town of Vail Establish a list of essential service providers in the Town of Vail to potentially partner with to ensure critical service workers live within the Town of Vail. This information will support "catch up" efforts. Achieves Objective D. Host Personal Finance and/or Home Buyer Education To encourage home ownership and create successful home owners it is important to provide information and educational opportunities to potential residents. This may also provide the encouragement current renters or existing home owners may need to take the next step in the housing market, freeing up their existing unit to house other employees. This education may provide additional "catch up" opportunity. Achieves Objectives B, D, E, and F. Annual Review In order to ensure the EHSP is always current and is responsive to changing conditions, the Housing Authority shall review the EHSP annually and changes shall be periodically recommended to the Town Council. The purpose of these reviews shall be to ensure that progress on topics related to employee housing is being maintained and that adjustments in Objectives, Policies and Action Steps are made in a timely and specific manner. Achieves Objectives A, B, C, D, E, F, G, and H. Regional Efforts: In order to house employees associated with existing and anticipated jobs, workforce housing will be required throughout the County as well as in the Town. Vail will work actively with Eagle County officials and other municipalities to look for regional solutions to providing housing. Further, the need to provide transit services along with housing is also identified. When developing housing for Vail employees in Down-Valley locations, the cost of transit services will be considered in evaluations. IV~~Y~ . 17 Employee Housing Strategic Plan While furthering regional housing is an objective of the Town, it will occur in concert with efforts in Vail, and in-Town deed-restricted housing will be a priority. The Town believes that there are a finite number of opportunities within Vail and these will be explored and pursued; Down- Valley development will not be undertaken if it results in not being able to participate in an opportunity within the Town's boundary. Partnering opportunities for Down-Valley development will occur through partnerships that may include not only the County, but also the Town of Avon, Town of Minturn, Eagle County School District, the U.S. Forest Service, and potentially private developers. The Dowd Junction area and the Village at Avon are identified as particular areas of interest where development opportunities are to be explored. ,, 'TN~Y~ ` 18 Employee Housing Strategic Plan IMPLEMENTAT] ACTION STEP Establish and Fund VLHA Operating Budget Establish Baseline "Existing Conditions" for All Units Monitor Existing Conditions for All Units i Monitor Rental and Vacancy Rates Conduct Housing Needs Assessment Updated Rational Nexus Study Monitor Total Number of Jobs in Town of Vail Host Finance/ Home Buyer Education Classes Buy Down Units Establish Buy Down Unit Criteria Develop New For- Sale Housing at Chamonix Develop Additional Rental Housing at Timber Ridge '. j ~~~~ a. ON MATRIX WHO IMPLEMENTS Town Council and VLHA Town Council and VLHA Town Council and VLHA Eagle County In conjunction with Eagle County Town of Vail Town of Vail VLHA Town Council and VLHA Town Council and VLHA Town Council and VLHA Town Council and VLHA WHEN 4th Quarter 2008 2009 1~ Quarter of Each Year Continuous 2010 Every Five Years (2011) 1~ Quarter of Each Year Two Per Year Continuous 4th Quarter 2008 2010 2011 19 ESTIMATED PROPOSED COST PRIORITY To Be Determined A $25,000 $5,000 None $10,000 $15,000 $2,000 $500 $1,000,000 /yeas None Potentially more than the value of the land Potentially the value of the land A A A A A A A A A A A Employee Housing Strategic Plan ACTION STEP Establish an EHU Exchange Program Implement the EHU Exchange Program Review & Potentially Modify Commercial Linkage Review & Potentially Modify Inclusionary Zoning Identify Land/Development Opportunities Prioritize Land/Development Opportunities Propose Development and/or Rezoning Review Housing Zone District Establish Incentive Zoning to Ensure No Net Loss of Rental Housing Pursue a Dedicated Funding Source ~~~': WHO IMPLEMENTS Town Council - Com Dev Dept - VLHA Recommendation Com Development Dept. and VLHA Town Council - Com Dev Dept - VLHA Recommendation Town Council - Com Dev Dept - VLHA Recommendation Town Council - Com Dev Dept - VLHA Recommendation Town Council - Com Dev Dept - VLHA Recommendation Town Council and VLHA Town Council - Com Dev Dept - VLHA Recommendation Town Council - Com Dev Dept - VLHA Recommendation Town Council and VLHA WHEN 4th Quarter 2008 Continuous 1~ Quarter of Each Year 1~` Quarter of Each Year 2"d Quarter of Each Year 2"d Quarter of Each Year 2nd Quarter of Each Year 2nd Quarter of Each Year 2nd Quarter of Each Year Begin 1st Quarter 2009 20 ESTIMATED COST $10,000 for legal review None None None None Acquisition of Property Development None None None in 2009 Marketing in 2010 PROPOSED PRIORITY A A A A A A B B B B Employee Housing Strategic Plan WHO ESTIMATED PROPOSED ACTION STEP IMPLEMENTS WHEN COST PRIORITY Monitor Free Market Real Estate VLHA and 1st Quarter of Transactions Consultant Each Year $5,000 B Establish List of Essential Service Town Council and 4th Quarter Providers Town Staff 2008 None C Create Partnerships with Essential Town Council and Service Providers VLHA Continuous None C ROLES AND RESPONSIBILITIES Roles and Responsibilities -The provision of deed-restricted housing is viewed as a partnership between various boards within the Town, each having important roles and responsibilities. As such, it is imperative that communications be established and maintained between boards to achieve the goal and objectives that are stated in this Plan. Efforts will be made to define, and periodically refine, the roles and associated communications between the bodies identified below. The Town Council shall act in accordance with Town codes and shall fulfill their decision-making functions as identified by local ordinances. Land Use Regulations typically stipulate the review procedures to be followed in reviewing a proposed development. Ultimately, most reviews require an affirmative decision by the Town Council. Therefore, the Council will be the ultimate decision-making body for developments that require Council review. The Planning and Environmental Commission and the Design Review Board also play an important development review role. These two boards will review development proposals, consistent with the requirements of codes and ordinances, to ensure that development is in compliance. ~-~-c~ The Vail- Housing Authority (V.L.H.A.) plays a critical role in ensuring that housing f rlong-term residents and seasonal employees is available in the Town. This in turn, enhances the quality of life for local residents, and improves the economic viability of the area. The V.L.H. A. mission: i ~~~~. 21 Employee Housing Strategic Plan The V.L.H. A. will play an advisory role to the Town Council and the Planning and Environmental Commission on matters related to housing policy and development. The Authority will use this Housing Plan as a working document to guide future efforts. As identified in the EHSP, the Authority will work to carry out the Action Steps over the next three years. The Authority's priorities will be those contained in the EHSP as it is adopted, and as it may be modified following subsequent annual reviews. 1f~V 22 Employee Housing Strategic Plan GLOSSARY The following definitions are applicable for the terms used in this Plan. Area Median Income (AMI) Limits -most communities establish income limits for the programs they administer based on the area median income (AMI) for the area according to household size, which are adjusted annual/y by the Department of Housing and Urban Deve%pment (HUD). Four different income categories are defined for various programs and po/iciest 1. Extreme/y/ow-income, which is less than 30 percent of the median family income; 2. Very/ow-income, which is between 30 and 50 percent of the median family income; 3. Low-income, which is between 50 and 80 percent of the median family income; 4. Midd/e income, which is between 80 and 120 percent of the median family income; and 5. Above midd/e income, which is over 120 percent of the median family income. 1 Person 2 Person 30% $17,050 $19,500 50% $28,400 $32,450 60% $34,080 $38,940 80% $41,900 $47,900 100% $56,800 $64,900 120% $68,160 $77,880 140% $79,520 $90,860 160% $90,880 $103,840 3 Person $21,900 $36,500 $43,800 $53,850 $73,000 $87,600 $102, 200 $116,800 4 Person $24,350 $40,550 $48,660 $59,850 $81,100 $97,320 $113, 540 $129,760 S Person 6 Person $26,300 $28,250 $43,800 $47,050 $52,560 $56,460 $64,650 $69,450 $87,600 $94,100 $105,120 $112,920 $122,640 $131,740 $140,160 $150,560 7 Person 8 Person $30,200 $32,150 $50,300 $53,550 $60,360 $64,260 $74,200 $79,000 $100,600 $107,100 $120,720 $128,520 $140,840 $149,940 $160,960 $171,360 Catch-Up Housing - Housing needed to "catch-up" to current deficient housing conditions. In this Plan, catch-up housing needs are defined by current resident households reporting housing problems (overcrowded, cost-burdened and/or living in substandard housing conditions), current renters and owners looking to purchase a home and in- commuters that would like to move to Vail. Catch-up housing is generally addressed through local city development initiatives, non-profits and housing groups and public/private partnerships. Housing Continuum, The - As illustrated below, it is possible to estimate the number of resident households in the Town of Vail at various income levels. Vail's planning is based on addressing the needs of households of different incomes, recognizing that there is a need to ensure housing for a diversity of households. fi~YAtL 23 Employee Housing Strategic Plan 80-100% AMI 120-140% AMI Max Rent $1,825 100% AMI Max Rent $2,738 Max Price $241,432 $73,300 Max Price $334,741 140% AMI 80% AMI $109,500 $53,850 50-80% AMI Max Rent $1,346 80-10D%AMI «« • «' Max Price $180,238 425 HHl17.4% « 50-80%AMI 50% AMI 345 HHl14.1 $36,500 • • «•. • <=50% AMI <=50% AMI Max Rent $913 ~ 401 HHl16.4% Max Price $124,796 2007 Vail Households EXISTING DEED RESTRICTED EMPLOYEE HOUSING Buzzard Park Rent 24 Units Town Employee Miller Ranch Typically Tess than 120 %AMI For Sale 282 Units Vail Commons, Red Sandstone, North Trail 60-120% AMI For Sale 77 Units 100% AMI 100 % AMI or less 573,300 80%AMI $53,850 ea-t OOw.AMI 100-140% AMI Max Rent 51,625 Max Income 5109,500 140%AMI Max Prica 5247,432 Max Rent 52,738 E109,500 Max Price 5334,741 Middle Creek ~ Rent 142 Units 50%AMI so-ao•~ AMi ` less than 60% AMI Max Rcnt 5~,3as 536 500 , hlax Price 5180, 238 Over 140%AMI Income Over 5109,500 Ront Over 52,736 r-50?', AMI P nce Over 5334,741 Max Rent 5913 Max Pnco Siza,~55 2007 Vail Households Over 140% AMI Rent Over $2,738 Price Over $334,741 Inclusionary Zoning - requires a minimum percentage of residential development be provided to serve local employees as part of new residential developments (10 percent in Vail). Inclusionary zoning is a housing production obligation based on the community's need for employee housing as related to many factors, including a decreasing developable supply of land, rising home values, insufficient provision of housing affordable to residents by the market, etc., in addition to any direct employee generation impacts of development. Keep-Up Housing -Housing units needed to keep-up with future demand for housing. In this Plan, keep-up housing needs focuses on new housing units needed as a result of job growth in Vail and new employees filling those jobs. Keep-up housing is often addressed by the existing free-market, as well as regulatory requirements or incentives to produce housing that is needed and priced below the current market. Tli+i~Y~G 24 Employee Housing Strategic Plan Levels of Homeownership -When discussing affordability of properties by Area Median Income (AMI) level (defined above) and the types of homes households among different AMI groups are seeking; reference is made to a couple different stages of homeownership. This includes: 1. Entry-/eve/ ownership/first-time homebuyers: These are households typically earning in the lower to middle income range. In Vail, these are households earning 50 to 100 percent of the AMI. These include households that currently rent (or otherwise do not own a home) and are looking to purchase their first home. 2. Move-up buyers: These are households earning in the middle to upper income range (about 100 to 120 percent AMI or higher) that may currently own a home and are looking to purchase a new or different home for a variety of reasons (relocating, growing family (e.g., having children), shrinking family (e.g., empty-nesters), etc.). Mean -the average of a group of numbers, which is the sum of all the data values divided by the number of items. Median -the middle point in a data set. 25 Employee Housing Strategic Plan Resolution 19, Series of 2008 Adoption of the Employee Housing Strategic Plan _, f~YAP~.' 26 Employee Housing Strategic Plan PROCESS TIMELINE Vail Town Council May 6, 2008 Work Session Affirm housing goals and purpose of the EHSP Review proposed actions and timeline July 1, 2008 Work Session July 15, 2008 Special Work Session Identify and affirm objectives and action steps Confirm overall direction of the EHSP August 19, 2008 Work Session Identify and affirm the SWOT analysis Affirm overall direction of the EHSP September 2, 2008 Adopt the Town of Vail Employee Housing Strategic Plan Planning and Environmental Commission August 25, 2008 Work Session Provide feedback on the EHSP Vail Local Housing Authority March 24, 2008 VLHA Work Session Met with consultant (Chris Cares) Dusted off previous work towards a TOV Strategic Plan April 10, 2008 VLHA Work Session Review and update proposed actions and timeline April 24, 2008 VLHA Work Session Further refine actions and timeline for Council meeting May 13, 2008 Vail Economic Advisory Council Discussion of Housing Objectives May 15, 2008 ~iTY,~, 27 VLHA Work Session Employee Housing Strategic Plan June 10, 2008 Vail Economic Advisory Council Further discussion of Housing Objectives June 10, 2008 June 24, 2008 July 8, 2008 July 22, 2008 SWOT Analysis VLHA Work Session VLHA Work Session VLHA Work Session VLHA Work Session August 12, 2008 SWOT Analysis August, 2008 VLHA Work Session Meet with Local Employers August 26, 2008 VLHA Work Session Review Planning Commission feedback Implementation Matrix Review i~Y,d~ ° 28 Employee Housing Strategic Plan Attachment C MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: August 25, 2008 SUBJECT: A request for a final recommendation to the Vail Town Council for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. (PEC080045) Applicant: Community Development Department Planner: Nicole Peterson I. SUMMARY The applicant, Town of Vail, is requesting the Planning and Environmental Commission forwards a recommendation to the Vail Town Council, for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. Based upon Staff's review of the criteria outlined in Section V of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for the adoption of the Town of Vail Employee Housing Strategic Plan subject to the findings noted in Section VI of this memorandum. II. DESCRIPTION OF THE REQUEST The Planning and Environmental Commission is delegated the authority to review and provide recommendations to the Council for Comprehensive Plan and Zoning Ordinance amendments. The Employee Housing Strategic Plan (EHSP) is a Planning document much like the Comprehensive Plan or the Zoning Ordinance, therefore Staff is requesting that the Planning and Environmental Commission review and provide a recommendation to the Council. It shall be noted that the EHSP is not meant to be a comprehensive housing plan for the Town, but rather an appendix or supplement document to the Vail Comprehensive Plan, that provides more detail on the specific issue of employee or workforce housing. The EHSP addresses employee housing only, as defined below (Section 12-2-2 Definitions, Vail Town Code). EMPLOYEE HOUSING UNIT (EHU): A dwelling unit which shall not be leased or rented for any period less than thirty (30) consecutive days, and shall be occupied by at least one person who is an employee. For the purposes of this definition "employee" shall mean a person who works an average of thirty (30) hours per week or more on a year round basis in Eagle County, Colorado. II1. BACKGROUND At the January 22, 2008, Town Council retreat the Town Council identified the completion and adoption of a Housing Strategic Plan by September, 2008, as an immediate goal. In response to the Council's objective, the Vail Local Housing Authority (VLHA) has created a draft Employee Housing Strategic Plan (Attachment A). The Housing Authority has held two work sessions per month, over six months, to facilitate the timely completion of the draft Employee Housing Strategic Plan (EHSP). Additionally, the Vail Economic Advisory Committee has discussed the goals for the EHSP at both its May and June meetings. A detailed timeline of the drafting process is included in the EHSP Appendix. IV. APPLICABLE PLANNING DOCUMENTS The following four planning documents provide goals and objectives regarding employee housing. Staff has provided excerpts, below, from each of the four documents, for the Commission's consideration. o Vail 20/20, adopted November 6, 2007; o Vail Land Use Plan, updated March 23, 2006, o Vail Village Master Plan, updated January 5, 2005, and o Lionshead Redevelopment Master Plan, updated February 6, 2007 VAIL 20/20 (In part) HOUSING 20/20 Vision The number of employees living within the town has steadily increased, thanks to the town's commitment to ensure affordability and availability of housing. The number of deed-restricted rental and for-sale units required of both private and public projects has increased. The diversity of deed- restricted units can accommodate the seasonal worker, as well as all levels of year-round employees, including those with families. Housing in general has been transformed to include green building standards. 20/20 Implementation Based on input from the community during the 20/20 process, town staff with the Vail Local Housing Authority, developed the following goals and action strategies to support the housing vision. Goal: The Town of Vail recognizes the need for housing as infrastructure that promotes community, reduces transit needs and keeps more employees living in the town, and will provide for enough deed-restricted housing for at least 30 percent of the workforce through policies, regulations and publicly initiated development. 2 Actions/Strategies • Research and propose next steps for strengthening the town's inclusionary zoning and commercial linkage policies, including requirements for more zone districts. • Research parking requirements for employee housing and consider reducing requirements for employee housing developments. • Ensure pay-in-lieu funds generate as many workforce housing units as possible. • Establish protocol for disbursement of dedicated housing fund resources. • Research and secure potential alternative (besides pay-in-lieu) funding sources for employee housing. • Work with the County and other regional entities to ensure housing is addressed on a regional level. Preserve existing affordable/workforce housing within the town. o Expand "buy down" program that gives cash for deed restrictions of units. o Evaluate impact and explore options for replacement of EHUs from Timber Ridge during redevelopment. Expand the number of employee beds in the Town of Vail. o Redevelop Timber Ridge to increase affordable/workforce housing and maximize redevelopment potential with high density zoning. o Update Chamonix/Wendy's Master Plan to increase employee housing development potential. o Redevelop Chamonix parcel per the master plan. o Redevelop the A-Frame lot for employee housing. o Conduct inventory of all sites with development potential and pursue opportunities for acquiring undeveloped or underdeveloped properties. o Consider increasing incentives in pen`ormance zoning for property owners who build EHUs. o Continue to purchase properties for TOV employee rentals. o Amend development standards to allow for development of EHUs on properties. o Evaluate opportunities for potential land swaps with the Forest Service. o Evaluate opportunities for annexation of land from other jurisdictions. o Update the Vail Land Use Plan and identify more areas for employee housing. o Enumerate the effects of housing employees within the Town of Vail, including acost-benefit analysis of employee housing. 3 VAIL LAND USE PLAN (In part) 5. Residential 5.3 Affordable employee housing should be made available through private efforts,assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 5.4 Residential growth should keep pace with the market place demands for a full range of housing types. 5.5 The existing employee housing base should be preserved and upgraded. Additional employee housing needs should be accommodated at varied sites throughout the community. VAIL VILLAGE MASTER PLAN (In part) 2.6 Objective: Encourage the development of affordable housing units through the efforts of the private sector. 2.6.9 Policy: Employee housing; units may be required as part of any new or redevelopment project requesting density over that allowed by existing zoning. 2.6.2 Policy: Employee housing, shall be developed with appropriate restrictions so as to insure their availability and affordability to the local work force. 2.6.3 Policy: The Town of Vail may facilitate in the development of affordable housing by providing limited assistance. LIONSHEAD REDEVELOPMENT MASTER PLAN (In part) 4.1.5 West Lionshead -Residential/Mixed-Use Hub Appropriate uses could include high density residential development, lodging, community and visitor based office and retail space, employee housing and parking, bus or transit functions and a ski lift connection to Vail Mountain. Consideration should be given to integrating employee housing into the redevelopment of West Lionshead in accordance with the Town's employee housing policies and regulations. 4.9 Housing Recent community surveys and grass-roots planning efforts such as Vail Tomorrow have identified the lack of locals housing as the most critical issue facing the Vail community. Early in the 4 Lionshead master planning process, west Lionshead was identified as an opportunity area to implement some of the community's housing goals, particularly relating to employee housing. These opportunities and associated issues are outlined below. 4.9.1 No Net Loss of Employee Housing Ground rule number five of the master plan states that there shall be no net loss of employee housing in Lionshead as redevelopment occurs. 4.9.3 Policy Based Housing Opportunities The first means of implementing housing goals in Lionshead is through policy based requirements such as the employee generation ordinance currently being pursued by the Vail Town Council. As required by a future ordinance, all development and redevelopment projects, as a prerequisite to project approval, should provide housing for employees generated and to the extent possible this housing should be located in the Lionshead area. 4.9.4 Potential Housing Sites Following are specific sites that have been identified as suitable for locals and employee housing (in part). 4.9.4.1 South Face of the Lionshead Parking Structure The south face of the Lionshead parking structure was identified by the Lionshead master planning team, the public input "wish list" process, and the Vail Tomorrow process as a potential location for housing. Depending on building height, this location could support two to three levels of housing located above a ground floor level of retail and commercial space. 4.9.4.2 Top Deck of the Lionshead Parking Structure The upper deck of the Lionshead parking structure has also been identified as a potential location for housing. Although the parking structure does offer a large area, several critical planning considerations must be taken into account. 4.9.4.3 Vail Associates Service Yard Holy Cross Site, Vail Professional Building, Cascade Crossing, North Day Lot, and the former gas station site All redevelopment in West Lionshead will need to conform to the Town's housing policies and requirements. In order to create activity and vibrancy in West Lionshead it is appropriate to include some dispersed employee housing opportunities for permanent local residents in proposed developments in the area consistent with these policies. 4.9.4.3 Red Sandstone Parking Area 5 The parking lot and Town of Vail transit stop at the base of the Red Sandstone Elementary school were identified as a potential site for employee or locals housing because of its proximity to the elementary school, the 1-70 pedestrian overpass and the transit stop. However, the access (vehicular and pedestrian), safety and functional programming needs of the elementary school must take priority in any potential housing development scenario. 4.9.4.4 Old Town Shops The Old Town Shops, located just west of the Vail sanitation plant, were identified as potential employee housing locations during the master planning process. There are, however, other significant demands on this site, including potential expansion of the sanitation plant and the need for a new snowcat mountain access route from the Vail Associates service yard. In addition, the presence of the sanitation plant on one side and the existing gas station on the other reduces the desirability of this location for employee or locals housing. 7.5 Density (Dwelling Units Per Acre): Further, because it is a community goal to increase the number of permanent residents in Lionshead, employee housing units that are deed restricted for local employees should not count toward density. 9.1 Project Prioritization 9.1.2 Private Improvements 9.1.2.5 West Lionshead Local/ Employee Housing The development of a significant housing supply in west Lionshead should be a component of any plans to tear down the Sunbird Lodge and redevelop the Vail Associates core site. Housing is linked to the realignment of South Frontage Road, the possible construction of a new west Lionshead parking structure, and additional development on the west day lot and the Vail Associates service yard. To the greatest extent possible, all of these projects should be planned concurrently, and the sequence in which they are implemented should not preclude other future projects. It should be considered a priority by the Town of Vail to determine how much, if any, public parking should occur in this area. 9.5 Next Steps The following critical actions will set the stage for the implementation of the master plan recommendations. 9.5.5 Employee Generation In accordance with ongoing efforts to provide both locals and employee housing in the Town of Vail, an employee generation ordinance is currently being pursued by the Vail Town Council. 6 V. REVIEW CRITERIA Staff believes the criteria and findings for Zoning Amendments, as set forth in Section 12-3-7-C, Vail Town Code, provide relative and diligent standards to review the draft Employee Housing Strategic Plan. Staff has provided responses to each criterion with regard to the Employee Housing Strategic Plan (EHSP) below, and included the findings in the Staff recommendation in Section VI of this memorandum. (1) The extent to which the EHSP is consistent with all the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town. Staff believes the proposed EHSP is consistent with the Town's adopted goals, objectives and policies regarding employee housing, as set forth in the planning documents quoted in Section IV Applicable Planning Documents, of this memorandum. The EHSP furthers the goals, objectives and policies by providing implementation methods and action steps for the continued growth and development of the community's employee housing stock. (2) The extent to which the EHSP presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives. Staff believes the proposed EHSP is necessary to facilitate and provide a harmonious, convenient, workable relationship among land use regulations consistent with the Town of Vail master plans and development objectives. The EHSP is in response to the Town's continued need for employee housing units. The EHSP provides a foundation for future actions and decision making regarding development and funding of employee housing in Vail. (3) The extent to which the EHSP provides for the growth of an orderly viable community and serves the best interests of the community as a whole. The gap between available employee housing and Vail's premier service employment opportunities, is a well known and broadly discussed topic. The EHSP provides action steps to decrease the distance between housing and jobs which, Staff believes, provides for the growth of an orderly, viable community by potentially increasing the year-round population and economic activity in Vail. Staff believes the adoption of the EHSP serves the best interests of the community as a whole by responding to the community's goal of providing employee housing in Vail. (4) The extent to which the EHSP results in adverse or beneficial impacts on the natural environment, including, but not limited to, water quality, air quality, noise, vegetation, riparian corridors, hillsides and other desirable natural features. 7 As mentioned above, the EHSP provides action steps to decrease the distance between housing and jobs in Vail which, Staff believes, is highly beneficial to the natural environment, most notably Vail's air quality and noise. By decreasing the distance between housing and jobs, the demand on the transportation system (i.e. roads, bus traffic and automobile traffic) is decreased, resulting in the reduction of air and noise pollution. Reduction in the amount of traffic also helps protect riparian corridors, hillsides and native vegetation in Vail and along the I-70 corridor. VI. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council, for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. Should the Planning and Environmental Commission choose to recommend approval of the Employee Housing Strategic Plan, Staff recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto." Should the Planning and Environmental Commission choose to recommend approval of the Employee Housing Strategic Plan, the Department of Community Development recommends the Commission makes the following findings: "Based upon the review of the criteria outlined in Section V of this Staff memorandum dated August 25, 2008, and the evidence and testimony presented, the Planning and Environmental Commission finds: That the Employee Housing Strategic Plan is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, 2. That the Employee Housing Strategic Plan furthers the general and specific purposes of Zoning Regulations; and, 3. That the Employee Housing Strategic Plan promotes the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. " VII. ATTACHMENTS A. Draft Town of Vail Employee Housing Strategic Plan 8 ATTACHMENT D Minutes of the August 25, 2008 PEC meeting PLANNING AND ENVIRONMENTAL COMMISSION August 25, 2008 1:OOpm TOWN COUNCIL CHAMBERS /PUBLIC WELCOME 75 S. Frontage Road -Vail, Colorado, 81657 MEMBERS PRESENT Bill Pierce David Viele Michael Kurz Sarah Robinson-Paladino Scott Proper Susie Tjossem MEMBERS ABSENT Rollie Kjesbo 1. A request for a final recommendation to the Vail Town Council for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. (PEC080045) Applicant: Town of Vail, represented by Nina Timm Planner: Nicole Peterson ACTION: No action required. Comments forwarded. Nicole Peterson presented an overview of the proposal and the Staff memorandum. Commissioner Pierce asked where the strategic plan fit into the overall structure of the employee housing program. Nina Timm, TOV Housing Coordinator, replied that Staff and Council perceive it as being a tool that would be used in furthering the goal of providing affordable housing to people in the Town of Vail for all income levels. Commissioner Pierce asked how much work has gone into exploring housing outside Vail, on a regional level. Nina Timm, stated that the Town has been talking to great extent with the County and partnering to solve the problem regionally. Commissioner Pierce suggested that there was an imbalance between appreciation capped units and those that are not capped. Individuals who buy a deed restricted unit do not gain the equity to break out of the employee housing system. He concluded by stating that the Town should focus on rental which then allow people to save to eventually buy market-rate units. 5 Commissioner Kurz suggested that the only issue that has not been vetted is that individuals are not being taught how to obtain housing through saving, etc. He suggested that the document should include a goal about training people on how to achieve housing success. In order to receive housing you must take a training financial class. Commissioner Proper disagreed with Commissioner Pierce that buying and appreciation capped locked you into affordable housing forever. He likes the idea of tying deed-restricted units to a financial education program. Commissioner Pierce feels this plan and the previously approved ordinances rely to heavily on private developers and project redevelopment. This should be a community issue funded by a tax base. Commissioner Proper, stated he admires the goals of the Employee Housing Strategic Plan however, he disagrees with the methods. He stated that the recent slowdown in the housing market is an indicator that housing is not a right, it's a privilege. He believes the Strategic Plan is `low-hanging fruit' or the path of least resistance. He suggested instead, that the Town allow the market to take its course and we'll find that employer's will purchase housing for their employees on their own. He does not believe the government should be actively involved in this issue and businesses should be paying higher wages. Commissioner Viele agrees with Commissioner Proper. He believes the shortage of employee/ affordable housing is not the public sectors responsibility to solve. Commissioner Kurz stated that we have little enforcement capability however, if we don't set goals and make plans, we won't move forward. Commissioner Pierce asked if the plan was after the fact, referencing the adoption of Section 12-13, Employee Housing, Section 12-23 Commercial Linkage and Section 12-24 Inclusionary Zoning, Vail Town Code. Nina Timm responded that the ordinances are only a part of the plan, and that the plan also focuses on a regional approach to employee housing. Commissioner Paladino thinks that the efforts are forward thinking and attempting to have positive outcomes. She wishes the plan didn't focus so heavily on deed restricted units. Commissioner Tjossem suggested that rent controls are needed as rental properties are in excess of $1200 for aone-bedroom in Vail. The Commissioners requested that their comments be forwarded to the Council without formal recommendation. 6 MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: August 25, 2008 SUBJECT: A request for a final recommendation to the Vail Town Council for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. (PEC080045) Applicant: Town of Vail, represented by Nina Timm, Housing Coordinator Planner: Nicole Peterson I. SUMMARY The applicant, Town of Vail, is requesting the Planning and Environmental Commission forwards a recommendation to the Vail Town Council, for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. Based upon Staff's review of the criteria outlined in Section V of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for the adoption of the Town of Vail Employee Housing Strategic Plan subject to the findings noted in Section VI of this memorandum. II. DESCRIPTION OF THE REQUEST The Planning and Environmental Commission is delegated the authority to review and provide recommendations to the Council for Comprehensive Plan and Zoning Ordinance amendments. The Employee Housing Strategic Plan (EHSP) is a Planning document much like the Comprehensive Plan or the Zoning Ordinance, therefore Staff is requesting that the Planning and Environmental Commission review and provide a recommendation to the Council. It shall be noted that the EHSP is not meant to be a comprehensive housing plan for the Town, but rather an appendix or supplement document to the Vail Comprehensive Plan, that provides more detail on the specific issue of employee or workforce housing. The EHSP addresses employee housing only, as defined below (Section 12-2-2 Definitions, Vail Town Code). EMPLOYEE HOUSING UNIT (EHU): A dwelling unit which shall not be leased or rented for any period less than thirty (30) consecutive days, and shall be occupied by at least one person who is an employee. For the purposes of this definition "employee" shall mean a person who works an average of thirty (30) hours per week or more on a year round basis in Eagle County, Colorado. III. BACKGROUND At the January 22, 2008, Town Council retreat the Town Council identified the completion and adoption of a Housing Strategic Plan by September, 2008, as an immediate goal. In response to the Council's objective, the Vail Local Housing Authority (VLHA) has created a draft Employee Housing Strategic Plan (Attachment A). The Housing Authority has held two work sessions per month, over six months, to facilitate the timely completion of the draft Employee Housing Strategic Plan (EHSP). Additionally, the Vail Economic Advisory Committee has discussed the goals for the EHSP at both its May and June meetings. A detailed timeline of the drafting process is included in the EHSP Appendix. IV. APPLICABLE PLANNING DOCUMENTS The following four planning documents provide goals and objectives regarding employee housing. Staff has provided excerpts, below, from each of the four documents, for the Commission's consideration. o Vail 20/20, adopted November 6, 2007; o Vail Land Use Plan, updated March 23, 2006, o Vail Village Master Plan, updated January 5, 2005, and o Lionshead Redevelopment Master Plan, updated February 6, 2007 VAIL 20/20 (In part) HOUSING 20/20 Vision The number of employees living within the town has steadily increased, thanks to the town's commitment to ensure affordability and availability of housing. The number of deed-restricted rental and for-sale units required of both private and public projects has increased. The diversity of deed- restricted units can accommodate the seasonal worker, as well as all levels of year-round employees, including those with families. Housing in general has been transformed to include green building standards. 20/201mplementation Based on input from the community during the 20/20 process, town staff with the Vail Local Housing Authority, developed the following goals and action strategies to support the housing vision. Goal: The Town of Vail recognizes the need for housing as infrastructure that promotes community, reduces transit needs and keeps more employees living in the town, and will provide for enough deed-restricted housing for at least 30 percent of the workforce through policies, regulations and publicly initiated development. 2 Actions/Strategies • Research and propose next steps for strengthening the fown's inclusionary zoning and commercial linkage policies, including requirements for more zone districts. • Research parking requirements for employee housing and consider reducing requirements for employee housing developments. • Ensure pay-in-lieu funds generate as many workforce housing units as possible. Establish protocol for disbursement of dedicated housing fund resources. • Research and secure potential alternative (besides pay-in-lieu) funding sources for employee housing. • Work with the County and other regional entities to ensure housing is addressed on a regional level. Preserve existing affordable/workforce housing within the town. o Expand "buy down" program that gives cash for deed restrictions of units. o Evaluate impact and explore options for replacement of EHUs from Timber Ridge during redevelopment. Expand the number of employee beds in the Town of Vail. o Redevelop Timber Ridge to increase affordable/workforce housing and maximize redevelopment potential with high density zoning. o Update Chamonix/Wendy's Master Plan to increase employee housing development potential. o Redevelop Chamonix parcel per the master plan. o Redevelop the A-Frame lot for employee housing. o Conduct inventory of all sites with development potential and pursue opportunities for acquiring undeveloped or underdeveloped properties. o Consider increasing incentives in performance zoning for property owners who build EHUs. o Continue to purchase properties for TOV employee rentals. o Amend development standards to allow for development of EHUs on properties. o Evaluate opportunities for potential land swaps with the Forest Service. o Evaluate opportunities for annexation of land from other jurisdictions. o Update the Vail Land Use Plan and identify more areas for employee housing. o Enumerate the effects of housing employees within the Town of Vail, including acost-benefit analysis of employee housing. 3 VAIL LAND USE PLAN (In part) 5. Residential 5.3 Affordable employee housing should be made available through private efforts,assisted by limited incentives, provided by the Town of Vail, with appropriate restrictions. 5.4 Residential growth should keep pace with the market place demands for a full range of housing types. 5.5 The existing employee housing base should be preserved and upgraded. Additional employee housing needs should be accommodated at varied sites throughout the community. VAIL VILLAGE MASTER PLAN (In part) 2.6 Objective: Encourage the development of affordable housing units through the efforts of the private sector. 2.6.1 Policy: Employee housing; units may be required as part of any new or redevelopment project requesting density over that allowed by existing zoning. 2.6.2 Policy: Employee housing, shall be developed with appropriate restrictions so as to insure their availability and affordability to the local work force. 2.6.3 Policy: The Town of Vail may facilitate in the development of affordable housing by providing limited assistance. LIONSHEAD REDEVELOPMENT MASTER PLAN (In part) 4.1.5 West Lionshead -Residential/ Mixed-Use Hub Appropriate uses could include high density residential development, lodging, community and visitor based office and retail space, employee housing and parking, bus or transit functions and a ski lift connection to Vail Mountain. Consideration should be given to integrating employee housing into the redevelopment of West Lionshead in accordance with the Town's employee housing policies and regulations. 4.9 Housing Recent community surveys and grass-roots planning efforts such as Vail Tomorrow have identified the lack of locals housing as the most critical issue facing the Vail community. Early in the 4 Lionshead master planning process, west Lionshead was identified as an opportunity area to- implement some of the community's housing goals, particularly relating to employee housing. These opportunities and associated issues are outlined below. 4.9.1 No Net Loss of Employee Housing Ground rule number five of the master plan states that there shall be no net loss of employee housing in Lionshead as redevelopment occurs. 4.9.3 Policy Based Housing Opportunities The first means of implementing housing goals in Lionshead is through policy based requirements such as the employee generation ordinance currently being pursued by the Vail Town Council. As required by a future ordinance, all development and redevelopment projects, as a prerequisite to project approval, should provide housing for employees generated and to the extent possible this housing should be located in the Lionshead area. 4.9.4 Potential Housing Sites Following are specific sites that have been identified as suitable for locals and employee housing (in pa-t). 4.9.4.1 South Face of the Lionshead Parking Structure The south face of the Lionshead parking structure was identified by the Lionshead master planning team, the public input "wish list" process, and the Vail Tomorrow process as a potential location for housing. Depending on building height, this location could support two to three levels of housing located above a ground floor level of retail and commercial space. 4.9.4.2 Top Deck of the Lionshead Parking Structure The upper deck of the Lionshead parking structure has also been identified as a potential location for housing. Although the parking structure does offer a large area, several critical planning considerations must be taken into account. 4.9.4.3 Vail Associates Service Yard Holy Cross Site, Vail Professional Building, Cascade Crossing, North Day Lot, and the former gas station site All redevelopment in West Lionshead will need to conform to the Town's housing policies and requirements. In order to create activity and vibrancy in West Lionshead it is appropriate to include some dispersed employee housing opportunities for permanent local residents in proposed developments in the area consistent with these policies. 4.9.4.3 Red Sandstone Parking Area 5 The parking lot and Town of Vail transit stop at the base of the Red Sandstone Elementary school were identified as a potential site for employee or locals housing because of its proximity to the elementary school, the 1-70 pedestrian overpass and the transit stop. However, the access (vehicular and pedestrian), safety and functional programming needs of the elementary school must take priority in any potenfial housing development scenario. 4.9.4.4 Old Town Shops The Old Town Shops, located just west of the Vail sanitation plant, were identified as potential employee housing locations during the master planning process. There are, however, other significant demands on this site, including potential expansion of the sanitation plant and the need for a new snowcat mountain access route from the Vail Associates service yard. In addition, the presence of the sanitation plant on one side and the existing gas station on the other reduces the desirability of this location for employee or locals housing. 7.5 Density (Dwelling Units Per Acre): Further, because it is a community goal to increase the number of permanent residents in Lionshead, employee housing units that are deed restricted for local employees should not count toward density. 9.1 Project Prioritization 9.1.2 Private Improvements 9.1.2.5 West Lionshead Local/ Employee Housing The development of a significant housing supply in west Lionshead should be a component of any plans to tear down the Sunbird Lodge and redevelop the Vail Associates core site. Housing is linked to the realignment of South Frontage Road, the possible construction of a new west Lionshead parking structure, and additional development on the west day lot and the Vail Associates service yard. To the greatest extent possible, all of these projects should be planned concurrently, and the sequence in which they are implemented should not preclude other future projects. It should be considered a priority by the Town of Vail to determine how much, if any, public parking should occur in this area. 9.5 Next Steps The following critical actions will set the stage for the implementation of the master plan recommendations. 9.5.5 Employee Generation In accordance with ongoing efforts to provide both locals and employee housing in the Town of Vail, an employee generation ordinance is currently being pursued by the Vail Town Council. 6 ---V:--- REVIEW CRITERIA Staff believes the criteria and findings for Zoning Amendments, as set forth in Section 12-3-7-C, Vail Town Code, provide relative and diligent standards to review the draft Employee Housing Strategic Plan. Staff has provided responses to each criterion with regard to the Employee Housing Strategic Plan (EHSP) below, and included the findings in the Staff recommendation in Section VI of this memorandum. (1) The extent to which the EHSP is consistent with all the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town. Staff believes the proposed EHSP is consistent with the Town's adopted goals, objectives and policies regarding employee housing, as set forth in the planning documents quoted in Section IV Applicable Planning Documents, of this memorandum. The EHSP furthers the goals, objectives and policies by providing implementation methods and action steps for the continued growth and development of the community's employee housing stock. (2) The extent to which the EHSP presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives. Staff believes the proposed EHSP is necessary to facilitate and provide a harmonious, convenient, workable relationship among land use regulations consistent with the Town of Vail master plans and development objectives. The EHSP is in response to the Town's continued need for employee housing units. The EHSP provides a foundation for future actions and decision making regarding development and funding of employee housing in Vail. (3) The extent to which the EHSP provides for the growth of an orderly viable community and serves the best interests of the community as a whole. The gap between available employee housing and Vail's premier service employment opportunities, is a well known and broadly discussed topic. The EHSP provides action steps to decrease the distance between housing and jobs which, Staff believes, provides for the growth of an orderly, viable community by potentially increasing the year-round population and economic activity in Vail. Staff believes the adoption of the EHSP serves the best interests of the community as a whole by responding. to the community's goal of providing employee housing in Vail. (4) The extent to which the EHSP results in adverse or beneficial impacts on the natural environment, including, but not limited to, water quality, air quality, noise, vegetation, riparian corridors, hillsides and other desirable natural features. 7 As mentioned above, the EHSP provides action steps to decrease the distance between housing and jobs in Vail which, Staff believes, is highly beneficial to the natural environment, most notably Vail's air quality and noise. By decreasing the distance between housing and jobs, the demand on the transportation system (i.e. roads, bus traffic and automobile traffic) is decreased, resulting in the reduction of air and noise pollution. Reduction in the amount of traffic also helps protect riparian corridors, hillsides and native vegetation in Vail and along the I-70 corridor. VI. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council, for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto. Should the Planning and Environmental Commission choose to recommend approval of the Employee Housing Strategic Plan, Staff recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for the adoption of the Town of Vail Employee Housing Strategic Plan, and setting forth details in regard thereto." Should the Planning and Environmental Commission choose to recommend approval of the Employee Housing Strategic Plan, the Department of Community Development recommends the Commission makes the following findings: "Based upon the review of the criteria outlined in Section V of this Staff memorandum dated August 25, 2008, and the evidence and testimony presented, the Planning and Environmental Commission finds: That the Employee Housing Strategic Plan is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, 2. That the Employee Housing Strategic Plan furthers the general and specific purposes of Zoning Regulations; and, 3. That the Employee Housing Strategic Plan promotes the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." VII. ATTACHMENTS A. Draft Town of Vail Employee Housing Strategic Plan 8 Attachment A 1nWNOFVAIL Employee Housing Strategic Plan "To ensure there is deed restricted housing for at least 30% of Vail's workforce within the Town of Vail" September 2, 2008 Adopted by Resolution No. _, Series of 2008 In acknowledgement of the commitment to ensure deed-restricted housing options for at least 30% of Vail's workforce within the Town of Vail. Vail Town Council Vail Local Housing Authority Dick Cleveland, Mayor Mark Ristow, Chairman Andy Daly, Mayor Pro-Tem Sally Jackle Kevin Foley Steve Lindstrom Mark Gordon Ethan Moore Farrow Hitt Kim Newbury Kim Newbury Margaret Rogers Planning and Environmental Commission Bill Pierce, Chair Rollie Kjesbo, Co- Chair Michael Kurz Sarah Paladino Scott Proper Susie Tjossem David Viele Local Employers Vail Economic Advisory Council Vail Resorts, Inc. Mark Gordon Vail Valley Medical Center Dick Cleveland Town of Vail Greg Moffet Marriott Resort Rick Scapello Vail Cascade Hotel and Spa Robin Litt Vail Plaza Hotel Sally Hanlon Tivoli Lodge Bill Jensen Vail Plaza Hotel Rob Levine Sonnenalp Hotel M. Joseph McHugh Sweet Basil Pam Stenmark Mark Cervantes RRC Associates, Inc Matt Morgan Chris Cares Brian Nolan Steve Kauffman Tori Franks Rayla Kundolf Bob McNicols Bob Boselli Alan Koslof 2 Table of Contents I. Purpose ......................................................................... 5 II. Time Frame .................................................................... 6 III. Objectives ...................................................................... 6 IV. Policy Statements ............................................................ 8 V. Action Steps .................................................................... 8 VI. Roles and Responsibilities ................................................. 15 VII. Appendix ........................................................................ 16 a. Glossary b. Meeting Schedule c. Threats, Weaknesses, Strengths, & Opportunities d. Implementation Matrix 3 TOWN OF VAIL EMPLOYEE HOUSING STRATEGIC PLAN I. PURPOSE In 2006, through the Vail 20/20 Focus on the Future process the community established a housing goal. It is as follows: "The Town of Vail recognizes the need for housing as infrastructure that promotes community, reduces transit needs and keeps more employees living in the town, and will provide enough deed-restricted housing for of least 30 percent of the workforce through policies, regulations and publicly initiated development." Based upon the community's work, the Vail Town Council has confirmed the Town of Vail recognizes deed restricted employee housing as basic infrastructure. This type of housing allows employees to live within the town, promoting community, and improving. the quality of our local workforce, thereby supporting the local economy, and reducing regional transit needs. The Employee Housing Strategic Plan (EHSP) seeks to meet the expectations established by the community and confirmed by the Town Council and provide enough deed-restricted housing for at least 30 percent of the community's workforce to live in the Town of Vail through a variety of policies, regulations and publicly initiated development projects. An analysis of the threats, weaknesses, strengths, and opportunities has also been included in appendix of this document. It is important to recognize each of these going forward. The EHSP is adecision-making guide for the implementation of employee occupied housing programs. The EHSP documents the Town's current approaches to ensuring employee housing. It identifies the goals, outlines methods and defines action steps the Town will pursue. In addition, the Appendices provide background information on Town housing definitions, policies, and initiatives. This information is provided as an additional resource. The EHSP also recognizes and affirms the importance of Vail constantly serving as a regional .partner in the provision of employee housing. The adopted EHSP will lead the actions of Staff, the Vail Local Housing Authority and the Vail Town Council. 5 II. PLANNING TIMEFRAME The EHSP is based on a five-to-ten year planning horizon; it looks well into the future anticipating the needs for employee housing over time. The EHSP also contains identified "action steps" targeted for a one to three year period. These action steps will need to be evaluated annually and it is anticipated that they will be updated at least every three years as market conditions change. Annual Review In order to ensure the EHSP is always current and is responsive to changing conditions, the Housing Authority shall review the EHSP annually and changes shall be periodically recommended to the Town Council. The purpose of these reviews shall be to ensure that progress on topics related to employee housing is being maintained and that adjustments in Objectives, Policies and Action Steps are made in a timely and specific manner. III. OBJECTIVES A. Provide housing to address needs generated by new development or redevelopment. It is documented and understood that new development will require additional employees and a goal of the EHSP is to provide for that housing.. This goal is also referred to as "Keep Up" in the EHSP; going forward the Town will attempt to address the increase in demand from new employees by requiring deed-restricted housing as a condition of new development or redevelopment. The Town will encourage developers to provide a range of housing choices for the entire spectrum of jobs that are being created by the-new development. B. Respond to the existing affordable housing shortfall by pursuing a number of identified programs and development opportunities. This goal is also referred to as "Catch Up" in. the EHSP; it describes efforts to address deficiencies in the available housing inventory that have arisen over a period of years. C. Call for any deed-restricted housing that is required as a condition of development to be constructed at the time new development occurs. By dispersing year-round housing multiple objectives are met: neighborhoods are occupied throughout the year enhancing security and encouraging activity. Economies are achieved by having developers integrate deed-restricted housing at the time they are constructing other 6 uses, and construction of new residences occurs at the time the demand is tirst triggerea. D. Creation and maintenance of housing in Vail for emergency and key service workers. In Vail, where weather and the regional road system create periodic strains, this is especially important. The Town will also work with other businesses that provide services essential to municipal operations to encourage they have critical employees living within the Town of Vail. The Town will offer partnership opportunities to these types of employers. E. The Town will actively address affordable housing for Vail workers to ensure that the community remains competitive in economic terms. With the number of Down-Valley jobs continuing to increase, there will be competition for workers; Vail will work to provide appropriate housing to ensure that the Town remains attractive in the regional job market. F. Increasing and maintaining deed-restricted housing within the Town encourages the efficient use of resources by placing employees closer to their place of work. It is understood there is a reduced need for personal automobiles and reduced transit costs when home and work are in close proximity to one another. Also, there may be changes in workforce demographics that result in opportunities to reduce parking associated with affordable housing in selected locations. To the extent these opportunities can be realized, without negative impacts on the overall community, they will be explored. G. Planning for new employee housing will take jobs and wages into account. It is recognized that wages associated with a particular job influence housing demand. In both catch-up and keep-up programs the Town will work toward providing a range of housing types at price points appropriate to the varying incomes of workers in Vail. It is recognized the free market provides limited opportunity for even the highest wage earners to live and work in Town and it is necessary to have a full range of employees in the community. Diverse housing opportunities for the broadest range of employees will enhance the community. H. The Town will provide and plan for housing along with local and regional public transportation. 7 The EHSP recognizes that these functions are intertwined and where deed-restricted housing exists, there will be a demand for transportation services. It is the goal of the Town to minimize overall transportation costs by housing employees in proximity to their jobs, and to also anticipate the projected costs of transportation (due to fuel and other scarce resources) in the provision of deed-restricted housing elsewhere in the region. IV. POLICY STATEMENTS The Town of Vail will pursue three broadly described methods to achieve the Town's housing goal. A. Regulatory Requirements will be Imposed by the Town ^ Development will be required to address a portion of its housing demand within the Town of Vail; and ^ New development and redevelopment will be required to address a portion of its housing demand at the development site. B. The Town will Initiate Development and Acquisition ^ To address employee housing needs beyond the regulatory requirements for new development; and ^ To respond to the desire to promote a more diverse and vibrant local community. C. Regional Partnerships will be formed ^ These efforts will address. employee housing needs beyond the regulatory requirements by actively seeking partnerships, including: i. Public /Private, and ii. Multi Jurisdictional. These broad methods are further addressed in the Action Steps that are described in the following section. V. ACTION STEPS A. The Town will-continue to use tools already in place including: a. Regulatory Requirements The "Linkage" or Commercial Jobs Generation Program The Town will review the current linkage program to evaluate whether it has been meeting the objectives of ensuring that new housing is being created to house a portion of_ the employee demand that is being generated by new commercial uses in the Town. At this time, no immediate changes in the overall requirements of the program are anticipated. However, the current requirement for new commercial development to provide employee 8 housing for at least twenty percent (20%) of the employees generates may be reevaluates ana the requires percentage may ae changed as a result of the review, the areas of impact may be modified, and the formulas for calculating job generation rates may be further refined. The Linkage Program provides housing to "keep up" with new demand as it is generated. Achieves Objectives A, C, E, F, and G. ii. The "Inclusionary" Program The Town does not anticipate major changes to the Inclusionary Housing program at this time. However, the current requirement to restrict 10 percent (10%) of new residential square footage in high density areas to be employee housing with deed restrictions, may be reevaluated and the required percentage may be changed as a result of the evaluation, and/or the areas (zone districts) of impact may be modified. The Inclusionary Program provides housing to "keep up" with new demand as it is generated. Achieves Objectives A, C, E, F, and G. iii. Housing District Zoning Designation The Town currently has a "Housing District" zoning designation. As an action step to implement the Housing Plan, the Town will review the requirements of this district to ensure that it is fully meeting its intended purposes. That review will address the procedural requirements for the Housing District, land use provisions including density, parking and design standards, and provisions for density bonuses. The evaluation of the Housing District will ensure the Housing District provides optimal employee housing development. Achieves Objectives B, D, E, F, and G. b. Town Initiatives i. Buy-Downs to Generate Deed-restricted Units The Town will actively pursue purchase of attractively priced units for imposition of an appreciation capped deed restriction, and subsequent resale. This technique for increasing the supply of permanently affordable housing is known as a "buy down." It is recognized that this program will be highly market dependent, with limited applicability when the local residential market is surging, and becoming more attractive at times when there is a plateauing of 9 prices. The Town will need to increase the allocation of funds to underwrite the costs associated with purchasing, deed restricting and reselling for-sale units. This is an opportunity to provide diverse housing, to serve the full spectrum of employees. It is important to update the parameters by which buy down units are considered so each buy down unit meets the established goals. Further, it is expected that there will be active involvement by the Housing Authority in overseeing this program. The Buy-Downs program provides housing to "catch up" with existing deficiencies and reduce market leakage. Achieves Objectives B, D, E, F, and G. ii. Employee Housing Units Exchange Program The Town will conduct a review of the "dispersed housing units" that have been created under the density bonus provisions allowed by Town Code since 1982. It is estimated that XXX units were created under the existing program, typically ranging in size from 300 to 500 square feet. It is believed that many of these units are not being used to house employees as anticipated by the program. Although these units are covered by various types of deed restrictions, the requirements are not uniform and in many cases are not meeting the objective of providing long-term dispersed employee housing. The Town will evaluate the current program and will consider a "deed restriction exchange program" as a part of this overall effort. The program would likely permit, at the initiation of the landowner, the exchange of small rental units for a larger for- sale, price appreciation capped employee housing unit. Guidelines fot the program will be developed. It is expected that these standards will address recommended size of units, location, homeowner's fees and other aspects of the program. Such a program has been recently tried in Vail. It is believed that other dispersed employee units, not currently in use, could be leveraged into permanently restricted units by using this technique; it could represent an important element of this overall plan. The Units Exchange Program is to increase the quality and the total quantity of employee housing within the Town of Vail. Achieves Objectives B, E, F, and G. iii. Incentive Zoning and Density Bonuses The Town will consider workforce housing objectives in all review processes that permit discretion. This means that the Town will work actively with developers as a part of the Housing District, 10 Special Development District review processes and requested cnanges in zoning to not only meet me requirements or existing code, but to look for opportunities to go beyond code requirements to encourage additional workforce housing to be created. As a part of these review processes the Town will work actively with developers to create incentives to develop housing that exceeds the minimal requirements contained in the code. Additional density may be granted in selected locations through the appropriate review processes, and fee waivers and subsidies may be considered. The Incentives Zoning and Density Bonuses help Vail to "catch up" with existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, and G. iv. Review Rezoning and Vacant Land Opportunities The Town will regularly review existing codes and the vacant land inventory to identify opportunities to modify current programs that further support the goals of this Plan. The Review of Rezonings and Vacant Land provides "catch up" opportunities to address existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, and G. v. Town Participation in Developments Providing Deed-Restricted Housing The Town is prepared to actively participate in, and will seek partners to further the development of deed-restricted housing. Vail Commons, Middle Creek, Buzzard Park and Miller Ranch (located near Edwards in Eagle County) are four relatively large developments that have been completed through active Town participation. As illustrated below, these developments serve households at different income levels. This has been, and will continue to be an objective of the Town, to serve the broad spectrum of need within the community rather than focusing on just a narrow category of income or household type. The Town participation provides "catch up" opportunities to address existing deficiencies and add to the overall percent of employees living within the Town of Vail. Achieves Objectives B, D, E, F, G, and H. 11 vi. Pursue a Dedicated Funding Source The Town will pursue a dedicated funding source to ensure adequate and ongoing resources for employee housing initiatives. It is recognized the Town will play an integral role in the creation of employee housing and dedicated dollars will aid in these efforts. The Town may pursue any of the following funding alternatives: a dedicated sales tax increase, a dedicated mill levy increase, dedication of the Real Estate Transfer Tax or any other funding source that may be identified. A dedicated funding source would provide "catch up" housing opportunities for Vail workers. Achieves Objectives B, D, E, F, G, and H. EXISTING DEED RESTRICTED EMPLOYEE HOUSING Buzzard Park Rent 24 Units Town Employee Miller Ranch Typically less than 120 % AMI IFor Sale 282 Units Vail Commons, Red Sandstone, North Trail 60-120% AMI For Sale 77 Units 100% AMI 100% AMI or less 573,300 Middle Creek Rent 142 Units 50% AMI Less than 60%AMI 539,500 90%AMI 553,850 ;' 50.80!4 A?AI ~'{°~ MaxRenES1;348:~- M ex-Price 5180,238 <=5ox AMi ,~.Max.RentS8.19. .`, Max Prlce X124,798 100.140% AMI Max Income 5109,500 140% AMI Max Rent 52,738 5109,500 Max Price 5334,741 Over 140%. AML Income Over 5109,500 Reny Over. 52,738 Price Over 5334,741 2007 Vail Households There are several potential developments that will include significant numbers of deed-restricted units within the Town. All are at different stages in of planning and. development. These developments are illustrated in the charts below. As shown, the developments are planned to house a combination of seasonal and year-round workers. In addition, they are expected to come on line at different points in time, responding to market demand, but also in some cases to requirements imposed on developers that are required to construct the units as a condition of new development. 12 Proposed Timber Ridge Rent 198 Units Less than 80%AMI g0% AMI $53,850 North D Lot Rent 120 Seasonal Beds 50%AMI Less than 60%AMI $36,500 }; _~ 50-80%'AMI'"~' Max Ront St 346': ~. Max Price 5180,238 _ .~ Max Renti813 Max Price $124,798 , Chamonix For Sale 70 Units 120%AMI or less 100% AMI $73,300 New development incorporating deed-restricted housing, like that constructed to date, will be designed to serve a range of incomes. This consideration will be important to the planning of new locals-serving developments in the Town. The present plans for positioning new development are illustrated in the chart below. However, it is understood that there will be refinements to the EHSPs for several of the new developments (Chamonix, Timber Ridge, Buzzard Park Phase II) that may alter the positioning of the development within the overall marketplace. The process of gradually refining the plans for development, while ensuring that a broad range of incomes are served by the combination of different developments, remains an objective of the Town. Estimates of additional units in the "pipeline" include: Timber Ridge - 800 beds (replacement) Timber Ridge - 300 beds (new) North Day Lot -140 - 150 beds Chamonix - 50 - 70 units Buzzard Park II - 20 - 25 mostly studio units Deed buy downs - 1- 3 per year Water District Land/Partnerships - 20 units in Vail Ever Vail -Required Ever Vail -Additional opportunities USFS land swaps (??) West Vail Mall For Sale 100-140 %AMI Max Rent $2,738 140% AMI 2 Max Price $334,741 $109,500 Over 140°/.AMI Rent Over $2.738 Price Over $334,741 2007 Vail Households 13 Ever Vail Rent 164 Beds Income Range? Rental Seasonal I Year-round Q Q Q ~ 0 0 Q Q Q a a a Q Q Q Key: Q 1-3 years from now ~ 3-5 years from now Q 7-3 years from now Timber Ridge - 800 beds (replacement) Chamonix - 50 - 70 units West Vail North Day Lot - 120 - 140 beds Deed buy downs - 1- 3 per year ~ 3-5 years from now Buzzard Park II - 20 - 25 mostly studio units West Vail Ever Vail -Required Timber Ridge - 300 beds (new) x^ 5+ years from now 0 5+ years from now Water District Land/Partnerships - 20 units in Vail Ever Vail -Additional opportunities USFS land swaps (??) West Vail Mall vii. Monitor the Rate of Free Market Employee Occupied Homes The Town will monitor the rate of free market homes occupied by local workers, and deed-restricted homes, on a regular basis. Conversions of free market residential units to second home owner units will be considered in Vail's evaluation of progress toward the goals identified in this Plan. This monitoring will support both "catch up" and "keep up" efforts. Achieves Objectives B, E, F, and G. viii. Conduct a Demographics Survey of Current Vail Residents In order to better understand the current demographics of the local population it is necessary to conduct a local survey. This will provide the Town with back ground information to consider in future housing policy and development decisions to ensure the Town is maintaining a character that is as diverse as it is today. This may occur in conjunction the Annual Community Survey. This information will support "catch up" efforts. Achieves Objectives A, B, D, E, F, and H. ix. Establish a List of Essential Service Providers in the Town of Vail Establish a list of essential service providers in the Town of Vail to potentially partner with to ensure critical service workers live within the Town of Vail. This information will support "catch up" efforts. Achieves Objective D. c. Regional Efforts In order to house employees associated with existing and anticipated jobs, workforce housing will be required throughout the County as well as in the Town. Vail will work actively with Eagle County officials and other municipalities to look for regional solutions to providing housing. Further, the need to provide transit services along with housing is also identified. 14 When developing housing for Vail employees in Down-Valley locations, the cost of transit services will be considered in evaluations. While furthering regional housing is an objective of the Town, it will occur in concert with efforts in Vail, and in-Town deed-restricted housing will be a priority. The Town believes that there are a finite number of opportunities within Vail and these will be explored and pursued; Down- Valley development will not be undertaken if it results in not being able to participate in an opportunity within the Town's boundary. Partnering opportunities for Down-Valley development will occur through partnerships that may include not only the County, but also the Town of Avon, the U.S. Forest Service, and potentially private developers. The Dowd Junction area and the Village at Avon are identified as particular areas of interest where development opportunities are to be explored. d 1-3 years from now Partner with the County - 200 units per year ~ 3-5 years from now I ~ 5+ years. from now Partner with the County - 200 I Partner with the County - 200 units units per year per year VI. ROLES AND RESPONSIBILITIES Roles and Responsibilities -The provision of deed-restricted housing is viewed as a partnership between various boards within the Town, each having important roles and responsibilities. As such, it is imperative that communications be established and maintained between boards to further the goals and objectives that are stated in this Plan. Efforts will. be made to define, and periodically refine, the roles and associated communications between the bodies identified below. The Town Council shall act in accordance with Town codes and shall fulfill their decision-making functions as identified by local ordinances. Land Use Regulations typically stipulate the review procedures to be followed in reviewing a proposed development. Ultimately, most reviews require an affirmative decision by the Town Council. Therefore, the Council will be the ultimate decision-making body for developments that require Council review. The Planning and Environmental Commission and the Design Review Board also play a development review role. These two boards will review development proposals, consistent with the requirements of codes and ordinances, to ensure that development is in compliance. The Vail Housing Authority (V.L.H.A.) plays a critical role in ensuring that housing for long-term residents and seasonal employees is available in the Town. This in turn, enhances the quality of life for local residents, and improves the economic viability of the area. The V.L.H. A. mission: 15 The V.L.H. A. will play an advisory role to the Town Council and the Planning and Environmental Commission on matters related to housing policy and development. The Authority will use this Housing Plan as a working document to guide future efforts. As identified in the EHSP, the Authority will work to carry out the Action Steps over the next three years. The Authority's priorities will be those contained in the EHSP as it is adopted, and as it may be modified following subsequent annual reviews. 16 GLOSSARY The following definitions are applicable for the terms used in this Plan. Area Median Income (AMI) Limits -most communities establish income limits for the programs they administer based on the area median income (AMI) for the area according to household size, which are adjusted annually by the Department of Housing and Urban Development (HUD). Four different income categories are defined for various programs and policies: 1. Extremely low-income, which is less than 30 percent of the median family income; 2. Very low-income, which is between 30 and 50 percent of the median family income; 3. Low-income, which is between 50 and 80 percent of the median family income; 4. Middle income, which is between 80 and 120 percent of the median family income; and 5. Above middle income, which is over 120 percent of the median family income. 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 30% $17,050 $19,500 $21,900 $24,350 $26,300 $28,250 $30,200 $32,150 50% $28,400 $32,450 $36,500 $40,550 $43,800 $47,050 $50,300 $53,550 60% $34,080 $38,940 $43,800 $48,660 $52,560 $56,460 $60,360 $64,260 80% $41,900 $47,900 $53,850 $59,850 $64,650 $69,450 $74,200 $79,000 100% $56,800 $64,900 $73,000 $81,100 $87,600 $94,100 $100,600 $107,100 120% $68,160 $77,880 $87,600 $97,320 $105,120 $112,920 $120,720 $128,520 140% $79,520 $90,860 $102,200 $113,540 $122,640 $131,740 $140,840 $149,940 160% $90,880 $103,840 $116,800 $129,760 $140,160 $150,560 $160,960 $171,360 Catch-Up Housing -Housing needed to "catch-up" to current deficient housing conditions. In this Plan, catch-up housing needs are defined by current resident households reporting housing problems (overcrowded, cost-burdened and/or living in substandard housing conditions), current renters and owners looking to ,purchase a home and in-commuters that would like to move to Vail. Catch-up housing is generally addressed through local city development initiatives, non- profits and housing groups and public/private partnerships. Housing Continuum, The - As illustrated below, it is possible to estimate the number of resident households in the Town of Vail at various income levels. Vail's planning is based on addressing the needs of households of different incomes, recognizing that there is a need to ensure housing for a diversity of households. 17 80-100% AM I Max Rent $1,825 100%AMI Max Price $241,432 I $73,300 80% AMI ,,..M~#„~~ ': 1 --- 553,850 50-80% AMI ~'r~: ;~ ,~~~ Max Rent $1,346 ~ ~ • ~' t Max Price $180,238 ~ ~ 50-80°/.~~AMI ~,-- 50%AMI ~` HHN4.1% r $36,500 :>•' ~ <=50%AMI ~=50s~~ AMI Max Rent $913 401' HHH8.4% Max Price $124,796 - 2007 Vail Households 120-140% AMI Max Rent 52,738 Max Price 5334,741 140%AMI $109,500 Over 140 % AMI Rent Over 52,738 Price Over 5334,741 Inclusionary Zoning - requires a minimum percentage of residential development be provided to serve local employees as part of new residential developments (10 percent in Vail). Inclusionary zoning is a housing production obligation based on the community's need for employee housing as related to many factors, including a decreasing developable supply of land, rising home values, insufficient provision of housing affordable to residents by the market, etc., in addition to any direct employee generation impacts of development. Keep-Up Housing -Housing units needed to keep-up with future demand for housing. In this Plan, keep-up housing needs focuses on new housing units needed as a result of job growth in Vail and new employees filling those jobs. Keep-up housing is often addressed by the existing free-market, as well as regulatory requirements or incentives to produce housing that is needed and priced below the current market. Levels of Homeownership -When discussing: affordability of properties by Area Median Income (AMI) level (defined; above)- and the types of homes households among different AMI groups are seeking, reference is made to a couple different stages of homeownership. This includes: 1. Entry.-level ownership/first-time homebuyers: These are households typically earning in the lower to middle income range. In Vail, these are households earning 50 to 100 percent of the AMI. These include households that currently rent (or otherwise do not own a home) and are looking to purchase their first home. 2. Move-up buyers: These are households earning in the middle to upper income range (about 100 to 120 percent AMI or higher) that may currently own a home and are looking to purchase a new or different home for a variety of reasons (relocating, growing family (e.g., having children), shrinking family (e.g., empty-nesters), etc.). Mean -the average of a group of numbers, which is the sum of all the data values divided by the number of items. Median -the middle point in a data set. 18 MEETING SCHEDULE A. Vail Town Council May 6, 2008 Work Session Affirm housing goals and purpose of the EHSP Review proposed actions and timeline July 1, 2008 Work Session July 15, 2008 Special Work Session Identify and affirm goals and action steps Confirm overall direction of the EHSP August 19, 2008 Work Session Identify and affirm the SWOT analysis Affirm overall direction of the EHSP September 2, 2008 B. Vail Local Housing Authority March 24, 2008 VLHA Work Session Met with consultant (Chris Cares) Dusted off previous work towards a TOV Strategic Plan April 10, 2008 VLHA Work Session Review and update proposed actions and timeline April 24, 2008 VLHA Work Session Further refine actions and timeline for Council meeting May 13, 2008 Vail Economic Advisory Council Discussion of Housing Goals May 15, 2008 VLHA Work Session June 10, 2008 Vail Economic Advisory Council Further discussion of Housing Goals June 10, 2008 VLHA Work Session June 24, 2008 VLHA Work Session July 8, 2008 VLHA Work Session 19 July 22, 2008 SWOT Analysis August 12, 2008 SWOT Analysis August, 2008 August 26, 2008 VLHA Work Session VLHA Work Session Meet with Local Employers VLHA Work Session C. Planning and Environmental Commission August 25, 2008 Work Session 20 APPENDIX A THREATS, WEAKNESSES, STRENGTHS & OPPORTUNITIES A. Threats ^ Increasing Competition For Employees o Within the next ten-years: / Conservative estimates predict 2,000 new jobs will be created by development and redevelopment within the Town of Vail - The majority of these jobs will be service sector / It is estimated that at least 7,500 new jobs will be created between Eagle Vail and Gypsum in the next ten years - The majority of the these jobs will be service sector / It is estimated the Ginn Development will add 1,000 new jobs / Lake County and Garfield County are both experiencing job growth - The oil and gas industry and mining generally pay substantially more than the service jobs being created in Eagle County / State of Colorado predicts overall job growth of 23% (DOLA) ^ Real Estate Trends o Real estate in the Town. of Vail is expensive as compared to the rest of the region as well as compared to the national market o The conversion of locally occupied housing to second homes o The free market focuses on the housing desires of second homeowners o Increasing cost of construction o Local real estate values continue to trend upward o The gap between what locally earned wages can afford and free market housing prices continues to increase ^ Unique Geographic Constraints o Vail Pass on the East o Dowd Junction on the West o Limited undeveloped land within the Town of Vail o Surrounded on the north and south by National Forest and Bureau of Land Management lands o Farthest employment center from the Eagle County population base ^ Cost of Commuting o The cost of gas continues to increase o Public transportation does not provide a viable alternative to all communities o The availability and cost of parking is prohibitive 21 B. Weaknesses ^ Politics o Historical lack of political will for developing new employee housing o Previously, no clear policy direction for the provision of employee housing o Lack of Town owned land zoned for employee housing o There is not dedicated funding for employee housing o At the beginning, failure to plan for the housing needs of Vail employees Real Estate Market o Lack of free market homes affordable to local employees o Potential home buyers get less "bang for the buck" in Vail as compared to the region o Deed restricted housing developed does not provide a full spectrum of housing types (i.e., single family homes and seasonal rental units) Lack of permanent employees hired by local businesses o The jobs being generated by redevelopment are predominately lower paying seasonal service jobs o Added challenge. to establishing a diverse community C. Strengths ^ Community support for creating new employee housing ^ Clarity around` the Town's adopted housing goal ^ Regulatory requirements o Commercial Linkage o Inclusionary Zoning ^ Vacant land owned by the Town ^ Strong-local financial conditions o Bonding capacity o Strong local tax base o Potential to invest in employee housing ^ Regular private reinvestment in development ^ Expanding partnership opportunities with local businesses and governments ^ Current deed restricted housing stock ^ The "Vail" brand D. Opportunities ^ Town Initiated o Employee Housing Strategic Plan o Town owns significant unzoned vacant land o Rezoning of Town owned vacant land o Land Use Plan amendments o Annexation of land adjacent to the Town 22 o Ability to reallocate existing revenue o Sonding capacity o Ability to go to the voters for a dedicated funding source o Partnerships with local employers o Public-Private partnerships for development o Potential United States Forest Service Land Swaps Regional Opportunities o Other local governments are addressing the housing need as well o Significant vacant land o Partnerships with local employers o Public-Private partnerships for development o "The Valley Home Source" Current stagnation in real estate values 23 ACTION STEP Buy Down Units TOV Participation in New Employee Housing Development EHU Exchange Program Review Commercial Linkage Review Inclusionary Zoning Review Vacant Land Opportunities Review Housing. District Review Incentive ~I Zoning Pursue a Dedicated Funding Source Monitor Free Market Real Estate Transactions Demographics Survey Establish List of Essential Service Providers API IMPLEMEI~ WHO IMPLEMENTS VLHA and Town Council VLHA Recommendation and Town Council VLHA Recommendation - Com Dev Dept - Town Council VLHA Recommendation - Com Dev Dept - Town Council VLHA Recommendation - Com Dev Dept - Town Council VLHA Recommendation - Com Dev Dept - Town Couricil VLHA Recommendation - Com Dev Dept - Town Council VLHA Recommendation - Com Dev Dept - Town Council VLHA Recommendation and Town Council VLHA and Consultant Town Staff, Town Council, and Consultant Town Staff and Town Council ~ENDIX B ITATION MATR WHEN Every Year Chamonix = 2009 Timber Ridge I = 2010 4th Quarter 2008 1st Quarter of Each Year 1st Quarter of Each Year 2nd Quarter 2009 2nd Quarter 2009 2nd Quarter 2009 Begin 1st Quarter 2009 1st Quarter 2009 2010 (a component of the community survey) 4th Quarter 2008 24 IX ESTIMATED COST $1,000,000 / year Expensive $10,000 for legal review None None None None None None in 2009 Marketing in 201 $25,000 $25,000 None PRIORITY A+ A+ A A A A B B B B C C