HomeMy WebLinkAbout08. Vail_Economic_Development_Strategic_Plan_2008VAIL
ECONOMIC DEVELOPMENT
STRATEGIC PLAN
Completed by Town of Vail Staff
Adopted by Vail Town Council on December 16, 2008
vailgov.com
Vail Economic
Advisory Council
Bob Boselli, Mark Cervantes, Dick
Cleveland, Tori Franks, John Garnsey,
Mark Gordon, Sally Hanlon, Chris
Jarnot, Steve Kaufman, Alan Kosloff,
Rayla Kundolf, Michael Kurz, Rob
LeVine, Robin Litt, M. Joseph McHugh,
Bob McNichols, Greg Moffet, Matt
Morgan, Laurie Mullen, Brian Nolan,
Michael Norton, Mike Ortiz, Rick
Scalpello, Pam Stenmark, Mia Vlaar
Commission on
Special Events
Dave Chapin (Chair), Bobby Bank,
Kerry Donovan, Meggen Kirkham,
Rayla Kundolf, Robert McKown (Vice-
Chair), Heather Trub
Vail Local Marketing District
Advisory Council
Beth Slifer (Chair), Pam Stenmark
(Vice-Chair), John Dawsey (Treasurer),
Mark Gordon, Jamie Gunion, Pete
Hayda, Farrow Hitt (Alternate), Bob
Llewellyn, Laurie Mullen, Adam Sutner
Town Council
Dick Cleveland (Mayor),
Andy Daly (Mayor Pro-Tem), Kevin
Foley, Mark Gordon, Farrow Hitt, Kim
Newbury, Margaret Rogers
Town Manager
Stan Zemler
Assistant Town Manager
Pamela Brandmeyer
Economic Development
Office
Kelli McDonald,
Economic Development Manager
Community Development
Department
George Ruther,
Community Development Director
Warren Campbell, Chief of Planning
Rachel Friede, Planner II
Bill Gibson, Planner II
Nicole Peterson, Planner II
Finance Department
Judy Camp, Finance Director
Kathleen Halloran, Manager Budgets
and Financial Reporting
Major Contributors
1
Vail Photo by Jack Affleck
Table of Contents
I. PURPOSE Page 3
II. EXISTING CONDITIONS Page 3
III. BACKGROUND Page 5
IV. STRATEGIC PLAN PROCESS Page 7
V. VISION, MISSION AND GOALS Page 8
VI. GOALS, OBJECTIVES AND ACTION STEPS Page 9
A. WORK PLAN Page 15
VII. EVALUATION AND ANALYSIS Page 20
A. Strengths, Weaknesses, Opportunities, Threats
(SWOT) Analysis Page 20
B. Economic Indicators Page 24
VIII. GLOSSARY OF TERMS AND ACRONYMS Page 26
2
The purpose of the Economic Development Strategic Plan is to ensure long-term economic health by
enhancing Vail’s existing winter season and stimulating a viable summer economy. By gaining a better
understanding of the existing blend of commercial mixes, activities, and growth opportunities available, the
Town of Vail can decide on a course of action that can be used to generate and ensure a vibrant economic
future for the entire community.
This document is meant to be revisited and revised as action steps are completed and new economic
development issues arise in the community. The Economic Development Office and Vail Economic Advisory
Council, when looking for guidance and direction for existing or new endeavors and program goals will refer to
this strategic plan.
I. Purpose
II. Existing Conditions
Recent sales tax statistics compiled by the City of
Steamboat Springs indicate Vail has outpaced the
resorts of Winter Park, Aspen, Breckenridge, Steamboat
Springs, Glenwood Springs and Snowmass in sales tax
growth.
Other revenue sources include property tax, parking
revenue, pass-through taxes from other governmental
entities, lift tax, franchise fees, charges for services,
rental income, fines and investment income.
Other Revenue Sources
Outpacing Resorts
Revenues
The following summarizes the current economic and financial situation in the Town of Vail as it relates
to revenue, expenses and relationships.
The Town’s four percent general sales tax is the largest
single revenue source, contributing to approximately 39
percent of the town’s revenue.
Record levels of construction permit fees and plan
review fees have been generated over the last
two years, with nearly $2 billion in private sector
redevelopment and approximately $15 million in public
improvements. For the last two years of the major
redevelopments, reductions in sales tax revenue in
certain construction areas have been more than offset
by increases in sales tax in other areas.
The Town’s second largest revenue source, Real Estate
Transfer Tax (RETT), has grown from $2.1 million in 1996
to $9.0 million in 2008 as a result of Vail’s Billion Dollar
Renewal. The Town expects this revenue source to decline
somewhat once major new construction projects are
complete and sold out.
39%
Revenue
from Sales Tax
61%
Revenue
from Other
Sources
3
Vail’s economy is seasonal, with approximately 70 percent
of its sales tax generated during the winter (November
through April) and 30 percent generated through the
summer (May through October).
30%
Summer70%
Winter
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
2006 2007 2008
Original Projection without Redevelopment
Original Projection with Redevelopment
Actualmillions
The Town values its relationships with the business
community and supports local and externally-owned
businesses that serve Vail’s residents and visitors. The
Town works closely with its economic partners including
Vail Resorts, Inc.; the Vail Valley Medical Center; Vail
Valley Foundation; Vail Valley Partnership; Vail Chamber
& Business Association; Eagle County School District and
Eagle County to name a few.
Relationships
Capital improvements are the second largest expenditure
of the Town and are important in maintaining the town’s
vision to be “the premier mountain resort community.”
Capital improvements are currently funded by sales tax,
construction use tax, housing fee-in-lieu for affordable
housing projects, government grants, real estate transfer
tax (RETT) and various other sources.
Capital Improvements
Regionally, Vail continues to struggle with providing
affordable housing for residents living and working in the
Town. This follows an increased amount of development
between Eagle-Vail and Gypsum, and Vail residents moving
down-valley where new residential opportunities, shopping,
dining and entertainment activities continue to grow.
Economically, this affects Vail as new jobs come on line and
fewer employees are available to fill these jobs.
Affordable Housing
Expenditures & Relationships
The Town’s largest expenditure is municipal services at
70 percent of total budget. The Town is supported by
approximately 300 employees, of whom 224 are full-
time regular employees and the remaining are part-time,
seasonal and fixed-term or externally funded positions.
Municipal Services
“the premier
mountain
resort
community”
70%
Municipal
Services
30%
Capital
Expenditures
& Debt Service
4
Vail Photo by Jack Affleck
Policies
The following are current policies and programs used by the Vail Town Council, Town Manager and
Town Staff to further the economic health of the Town of Vail:
• To address seasonality of sales tax revenue, the Vail
Local Marketing District (VLMD) was established
in November 1999, to fund summer marketing
programs via a 1.4 percent lodging tax, which provides
approximately $2.0 million for programs to drive group
business and increase overnight visitors during May
through October primarily.
• The Town contributes over $2.0 million to economic
vitality programs year-round including funding
for special events and operation of Vail’s Visitor
Information Centers.
• In 2005, a tax increment financing district (TIF)
was created within the Vail Reinvestment Authority
to provide financing for public improvements in
Lionshead.
• In November 2008, residents passed a 4% construction
use tax to diversify the Town’s tax base and provide
a new source of revenue for capital projects. The
construction use tax is complementary to the 4% sales
tax that applies to purchases of tangible personal
property other than construction materials.
• Creation of an Economic Development Office in 2007
to focus on building a year-round economy; provide
direction for upgrading and maintaining Vail’s capital
assets; review and make recommendations regarding
workforce housing and all economic related issues.
• Continued support of retail including streetscape
upgrades, master planning, sign code modifications
and more.
• Annual analysis of the 15-year capital plan.
• Completion of Vail Parks and Recreation Master Plan to
address capital needs of Vail’s recreation facilities.
• To address the workforce housing issue, the Town
created a goal of housing 30 percent of employees
within the Town of Vail. The Town Council passed
commercial linkage and inclusionary zoning regulations
to require mitigation of employee housing for new
developments and redevelopment in order to meet this
goal. The Town is also working on the redevelopment
of Timber Ridge to generate new employee housing
opportunities.
• In 2006, the Vail Town Manager formed the Vail
Economic Advisory Council (VEAC), a citizen’s advisory
group that reviews current and on-going research
related to Vail’s economic vitality, while acting as a
sounding board on economic issues as requested by
the Town Manager.
The following report summarizes the analysis and
input from multiple stakeholders in the community for
maintenance of sustainable economic health for Vail.
This document reviews the process being followed; the
work plan including goals with corresponding objectives,
action steps, responsible parties, resources needed and
timeline for accomplishment; and concludes with economic
indicators to continue measuring economic progress to
accomplish the goals of the Vail community.
The plan is based on the following six goals, adopted
by the Vail Town Council that shall guide economic
development activity and programs in the Town of Vail:
1. Build a strong relationship between the Town of Vail
and the Vail business community.
2. Increase the Town of Vail’s economic activity as
measured by sales tax revenue to exceed annual
inflation, as measured by the Consumer Price Index.
3. Focus on building a year-round economy; reduce
economic seasonality by growing the summer economy
(May – October) at a rate greater than the winter
economy (November – April).
4. Provide support for a quality workforce delivering
world-class service to positively impact Vail’s economy.
5. Provide support for sustaining, upgrading and
maintaining Vail’s capital assets as it relates to
sustainable economic health.
6. Support the stimulation of diversity of services and
businesses locating in the Town of Vail.
5
Vail Photo by Jack Affleck
III. Background
In 2007, an Economic
Development Office was
established in the Town of Vail
municipality to lead marketing
activities and research, with
the goal of attracting overnight
visitors and patrons during the
non-ski season, to stimulate a
year-round economy in Vail. The
Economic Development Office has
partnered with the following three
groups to accomplish the general
goals of the Department:
Vail Local Marketing District (VLMD)
The Vail Local Marketing District was established in 1999 for the purpose of
marketing and promoting Vail, to attract destination overnight visitors from
May – October. The VLMD works to create economic vitality by increasing
both the visitor base and lodging sales tax revenues. Vail Local Marketing
District Advisory Council (VLMDAC) members are appointed by the Town
Council to make recommendations for allocations of the dedicated funds
from the 1.4% annual lodging tax. The group holds public meetings the
3rd Thursday of each month. The major functions of the VLMDAC are as
follows:
• Facilitate the development, implementation and measurement of all
efforts to increase heads in beds
• Annual strategic and operating plan and budget
• Statutory and budgetary compliance
• Facilitate approval process of the marketing campaign
• Vendor evaluations/ RFP process
Commission on Special Events (CSE)
The Commission on Special Events was established in 2002 for the purpose
of supporting street entertainment and special events for economic vitality,
year-round fun, sense of community and increased quality of experience for
guests and residents. Members are appointed by the Town Council and the
Commission holds public meetings the 1st Wednesday of each month. The
major functions of the CSE are as follows:
• Attract events to enhance Vail’s world class reputation and economic
vitality
• Develop critical success measurements for events
• Allocate funds budgeted by the Town of Vail for special events
• Coordination between CSE and VLMD
• Populate robust calendar of events
Vail Economic Advisory Council (VEAC)
The Vail Economic Advisory Council was established in 2006 for the purpose
of advising the Town Council, Town Manager and the community on
economic issues that will sustain, enhance and diversify the town’s economy.
Members are appointed by the Town Manager and the Council holds public
meetings the 2nd Tuesday of each month. The major functions of the VEAC
are as follows:
• Adopt and implement an annual work plan
• Develop initiatives to increase economic vitality
• Provide an economic lens to Town of Vail issues
• Act as a sounding board for the Town Manager
6
The vision and goals of this Economic Development Strategic Plan were gathered from the Vail 20/20
Comprehensive Plan document and adopted by Town Council on November 6, 2007. The economic
development vision and goals from Vail 20/20 were adopted by the Vail community through a
comprehensive citizen participation process, further described in the Vail 20/20 Executive Summary.
To facilitate the implementation of the vision and goals of Vail 20/20, the Town Council requested
an Economic Development Strategic Plan. The creation of the plan has been spearheaded by the
Economic Development Office and the Vail Economic Advisory Council, with the assistance of the
major contributors listed on page two of this document. The process to complete the Economic
Development Strategic Plan involved the following:
IV. Strategic Plan Process
7
Vision, mission and goals approved by Vail Town Council.
SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis conducted by the
Vail Economic Advisory Council.
An inventory of Vail economic, nancial, marketing, and closely related studies,
reports and plans.
Research and gathering of similar community economic development studies,
plans and tools. (Special thank you to the communities of Breckenridge, Park City
and Steamboat Springs).
A thorough analysis of the inventory to determine the long-term implications of
such data.
Economic Development Strategic Plan (EDSP) adopted by Vail Economic Advisory
Council.
EDSP presented to Commission on Special Events.
EDSP presented to Vail Local Marketing District Advisory Council.
EDSP presented to Planning and Environmental Commission.
EDSP presented to Town of Vail Directors Sta.
A creative interpolation of the vision and goals adopted by the community and
Council, combined with the inventory, research and analysis, to create a realistic
and achievable Economic Development Strategic Plan for the Town of Vail.
EDSP adopted by Vail Town Council.
Aug 15 2008
Aug 28 2008
Aug 28 2008
Sep 9 2008
Jul 15 2008
Nov 11 2008
Nov 18 2008
Nov 20 2008
Nov 24 2008
Dec 4 2008
Dec 16 2008
Dec 11 2008
V. Vision
Mission
Goals
The following economic development vision for Vail was taken from the Vail 20/20 document, adopted
November 6, 2007. Vail 20/20 was created through a community visioning process that is explained
in detail in the Vail 20/20 Executive Summary. The following vision describes how the community
envisions Vail’s economy:
“Vail’s economy is supported through a year-round viable business environment that meets
the market demands of both residents and visitors. The major redevelopment of much of the
town has expanded and enhanced Vail’s pedestrian and commercial areas, which provides
a strengthened tax base. A diversity of retail, lodging, dining, special events and service
businesses and both indoor and outdoor recreation opportunities funds a growing employment
and revenue base. The town’s strong infrastructure, environmental stewardship and its
cooperation with economic and community partners benefits Vail’s economy. Through prudent
cost-management and balancing of diversified revenue sources, the municipality has sustainable
funding for its capital and operational needs.”
“To sustain a vibrant, multi-seasonal economy for those who live, work
and play in the Vail community.”
1 Build a strong relationship
between the Town of
Vail and the Vail business
community.
2 Increase the Town of
Vail’s economic activity as
measured by sales tax revenue
to exceed annual inflation, as
measured by the Consumer
Price Index.
3 Focus on building a
year-round economy;
reduce economic seasonality
by growing the summer
economy (May – October) at
a rate greater than the winter
economy (November – April).
4 Provide support for
a quality workforce
delivering world-class service to
positively impact Vail’s economy.
5 Provide support for
sustaining, upgrading and
maintaining Vail’s capital assets
as it relates to sustainable
economic health.
6 Support the stimulation
of diversity of services
and businesses locating in the
Town of Vail.
Approved by the Vail Town Council on July 15, 2008
8
VI. Goals, Objectives, and Action Steps
The goals for Vail’s economic development are summarized in six major goal statements. The goal
statements are designed to establish a framework for future economic development efforts in Vail.
The objectives and action steps further describe the goal statements and provide a context within
which to evaluate and establish future economic development efforts. The goals, objectives and
action steps were drawn from discussions and meetings of the Town Council and VEAC and issues
identified in the Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis.1 Build a strong relationship between the Town
of Vail and the Vail business community.
This goal is meant to stress the importance of partnerships between the Town of Vail
municipality, the businesses within the Town of Vail including Vail Resorts and the
business associations.
1.1 Objective: Continue the efforts of the Vail Economic Advisory Council (VEAC)
Mission
The VEAC is a citizens’ advisory group providing advice to the Vail Town Council and Town Manager on issues
involving the economic vitality of the Town of Vail. In this role, the VEAC will review current and on-going
research related to Vail’s economic vitality, while acting as a sounding board and applying an “economic lens” to
issues as requested by the Town Manger or Town Council. The VEAC may also convene forums to gather and/or
disseminate information on the Town’s economy and economic impact of activities or proposals before the Town
Council.
Areas of Focus
Year-round Economy, Capital Needs, Workforce Housing, Transportation and Parking
1.1.1 Action Step: The VEAC will continue to meet once a month and will continue to build
on the following goals and strategies, described in more detail in the VEAC 2008 Work
Plan, which can be found in the Economic Development Office, Town of Vail:
Goal 1: Work with Vail Town Council and Town Manager on initiatives to develop a year-round
economy.
Strategy: Advise Vail Town Council and Town Manager regarding the Town’s marketing and special
events contributions.
Strategy: Advise Vail Town Council and Town Manager on the Town’s initiatives to support economic
vitality in Vail.
Goal 2: Advise Vail Town Council and Town Manager regarding direction for upgrading and
maintaining Vail’s Capital Assets.
Strategy: The VEAC will address priorities of the business community in relation to maintaining and
upgrading Vail’s capital assets.
Goal 3: Work with Vail Town Council and Vail Town Manager to review and make recommendations
regarding workforce housing in Vail.
Strategy: Advise Vail Town Council and Vail Town Manager regarding future impacts of workforce
housing as it relates to business in Vail.
Goal 4: Work with Vail Town Council and Vail Town Manager to review and make recommendations
regarding transportation and parking in Vail.
Strategy: Advise Vail Town Council and Vail Town Manager regarding future impacts of transportation
and parking as it relates to business in Vail.
9
2 Increase the Town of Vail’s economic activity
as measured by sales tax revenue to exceed
annual inflation, as measured by the
Consumer Price Index.
2.1 Objective: Benchmark and monitor local economic performance in order to track and respond
to changing economic conditions.
2.1.1 Action Step: Economic Development Office and Finance Department shall continue to
provide reports to VEAC and Town Council such as:
• Vail Business Review
• Same Store Sales Reports
• Vail Lodging Occupancy Forecast
• Competitive Resort Reports
• Consumer Confidence Reports
• Travel Trends Reports
• Economic Forecast Reports
2.2 Objective: Continue to facilitate “Vail’s Renewal. Celebrate” to maintain a sustainable
economy during redevelopment.
2.2.1 Action Step: Economic Development Office, with the assistance of the
Construction Mitigation Committee, shall identify and prioritize messaging and
marketing opportunities such as Open for Business signs, radio testimonials, print
advertising, Vail Street Sale events and others.
10
Vail Photo by Jack Affleck
3 Focus on building a year-round economy;
reduce economic seasonality by growing the
summer economy (May – October) at a rate greater
than the winter economy (November – April).
3.1 Objective: Continue and improve upon the Vail Local Marketing District efforts.
3.1.1 Action Step: Develop an annual work plan for the Vail Local Marketing District.
3.1.2 Action Step: Develop an inventory of capital assets including but not limited to
facilities of the Town of Vail, Vail Recreation District and Vail Resorts for the purpose of
marketing these facilities to attract destination guests.
3.2 Objective: Continue and improve upon the Commission on Special Events efforts.
3.2.1 Action Step: Develop an annual work plan for the Commission on Special Events to
continue the mission to support street entertainment and special events for economic
vitality, year-round fun, sense of community and increased quality of experience for
guests and residents.
3.2.2 Action Step: Commission on Special Events will sustain existing events and expand or
change events to respond to market changes.
3.2.3 Action Step: The CSE and the Economic Development Office will recruit
successful, sponsored events that attract guests in the off-seasons.
3.3 Objective: Schedule peer resort visits to other seasonal communities to learn best practices
and trends for economic sustainability.
3.3.1 Action Step: The Economic Development
Office will continue to fund peer resort
visits for Town Council and Town of Vail staff
to experience best practices and trends in
competitive resort towns. The Town of Vail
has visited the communities of Park City and
Steamboat Springs.
3.4 Objective: Develop recommendation for use of
Conference Center funds.
3.4.1 Action Step: The VEAC and the Economic
Development Office shall conduct focus
groups with stakeholders and present results
to the Town Council.
11
Vail Photo by Jack Affleck
The goal to support a quality workforce is three-fold, focusing on employee housing, customer
service and transportation. A large factor of customer service in Vail businesses is the quality of life
for service-business employees. The following objectives and action steps are meant to increase the
quality of life for employees who service Vail businesses by addressing the high price of housing in
the Vail Valley and employees who commute, to and from service jobs in Vail.
Provide support for a quality workforce
delivering world-class service to positively
impact Vail’s economy.4
4.1 Objective: Work with the business community, Eagle County and other municipalities to
address future workforce housing needs.
4.1.1 Action Step: The Economic Development Office and VEAC shall provide input
into updates of the Vail Employee Housing Strategic Plan.
4.2 Objective: Work with the business community to support programs to enhance delivery of
world-class service.
4.2.1 Action Step: The Economic Development Office and Communications
Office will spread the word to support existing customer service incentive
programs such as Platinum Service Program, Premier Impressions, Elevate Excellence
and Disney Service Programs.
4.2.2 Action Step: The Economic Development Office and Communications
Office will monitor competitive resorts’ programs that may be developed for Vail to
encourage world-class customer service in Vail hotels, restaurants, retail and service
businesses, Town departments, and recreation services with VEAC and Town Council
approval and potential funding.
4.3 Objective: Work with the business community and Eagle County to address parking and
transportation issues for workers and guests.
4.3.1 Action Step: The Town of Vail Public Works/Transportation Office will work in
conjunction with Economic Development Office and VEAC to encourage business
owners to implement programs that support employees who ride the bus or car-pool to
work.
4.3.2 Action Step: The Public Works/Transportation Office will work in conjunction with the
Economic Development Office and VEAC to research existing bus or car-pool
programs in Eagle County and share information with the Vail business community.
4.3.3 Action Step: The Economic Development Office will work with the Vail Valley
Partnership to develop and implement a transportation survey to employers to uncover
the transportation needs of employees and businesses.
12
Provide support for sustaining, upgrading
and maintaining Vail’s capital assets as it
relates to sustainable economic health.5
5.1 Objective: Play a role in providing input to master plans, 15-year capital plan and proposed
development and redevelopment plans.
5.1.1 Action Step: The VEAC will review Town of Vail master, strategic, 15-year capital, and
redevelopment plans and provide feedback that considers the economic vitality of the
plans.
5.1.2 Action Step: The VEAC will send a representative to public hearings of the Planning
and Environmental Commission and the Town Council to express the issues and
opinions of the Vail business community on development and redevelopment proposals.
5.1.3 Action Step: Identify and monitor the economic drivers in Vail and support those
drivers.
13
Photo by Brent Bingham
6.1 Objective: Develop a strategy to support retention and development of existing businesses.
6.1.1 Action Step: The Economic Development Office will work with local business
organizations to identify and prioritize needs to retain and develop established
businesses.
Support the stimulation of diversity of
services and businesses locating in the Town
of Vail.6
6.1.2 Action Step: The Economic Development Office will develop a program of
retention visits to include representatives from Town Council, VEAC and Town Manager’s
office.
6.2 Objective: Support a market analysis.
6.2.1 Action Step: The Economic Development Office and the VEAC will work to
assess existing product and identify competitor’s strengths and weaknesses to better
understand Vail’s needs and propose a course of action to fill those gaps.
6.3 Objective: Seek opportunities to broaden and diversify Vail’s economic base.
6.3.1 Action Step: The Economic Development Office and VEAC will create an
inventory of businesses to assist in the development of a business recruitment strategy.
6.3.2 Action Step: The Economic Development Office will work with the
Communications Office to develop a business recruitment packet.
14
Vail Photo by Jack Affleck
IV. Work Plan
The following work plan is meant to provide a road map of the previously stated goals, objectives
and action steps aligned with the responsible parties, resources needed and a general timeline for the
work.
Goal 1 Build a strong relationship between
the Town of Vail and the Vail business
community
Objective Action Step Responsible Party Resources Needed Timeline
Continue the efforts
of the Vail Economic
Advisory Council
(VEAC)
The VEAC will continue to meet
once a month and will continue
to build on VEAC 2008 Work
Plan
VEAC Budget contained
in Economic
Development Office
Monthly meetings
Strengthen
partnerships with Vail
businesses
Faciliate open communication
between the Town of Vail, Vail
Resorts, and businesses in the
sectors of retail, lodging, food
and beverage, development,
real estate, medicine, etc.
by holding regular meetings,
roundtables and forums
VEAC & Economic
Development Office
Funding for
speakers and
meeting locations -
$1,000 per event
Biannually –
summer and
winter seasons
Create a consistent
dialogue with business
organizations
Attend appropriate meetings
of the following business
organizations:
• Vail Chamber and Business
Association
• Lionshead Merchant
Association
• Vail Valley Partnership
• Meadow Drive Partnership
• Eagle County Economic
Council
Economic
Development Office
Economic
Development Office
staff
Meetings as
scheduled
15Vail Photo by Jack Affleck
Objective Action Step Responsible Party Resources Needed Timeline
Benchmark and
monitor local
economic performance
in order to track and
respond to changing
economic conditions
Continue to provide reports to
VEAC and Town Council such
as:
• Vail Business Review
• Same Store Sales Reports
• Vail Lodging Occupancy
Forecast
• Competitive Resort Reports
• Consumer Confidence
Reports
• Travel Trends Reports
• Economic Forecast Reports
Economic
Development Office
and Finance
Department
Staff time from
both departments.
Budget contained in
Economic
Development
Office
Monthly to VEAC.
Biannually to
Town Council
Continue to facilitate
“Vail’s Renewal.
Celebrate” to maintain
a sustainable
economy during
redevelopment
Identify and prioritize
messaging and marketing
opportunities such as Open for
Business signs, radio
testimonials, print advertising
and Vail Street Sale events and
others
Economic
Development
Office &
Construction
Mitigation
Committee
Staff and committee
time. Budget
contained in
Economic
Development
Office
Messaging during
non-ski months.
Meetings
biannually
Goal 2 Increase the Town of Vail’s economic
activity as measured by sales tax revenue to
exceed annual inflation, as measured by the
Consumer Price Index
16
Vail Photo by Jack Affleck
Goal 3 Focus on building a year-round economy; reduce
economic seasonality by growing the summer
economy (May – October) at a rate greater than
the winter economy (November – April)
Objective Action Step Responsible Party Resources Needed Timeline
Continue and improve
upon the Vail Local
Marketing District
efforts
Develop an annual work plan
for the Vail Local Marketing
District to continue the mission
of marketing and promoting
Vail to attract destination
overnight visitors from May –
October
VLMDAC and
Economic
Development Office
Staff and VLMDAC
time. VLMD Budget.
Monthly
meetings.
Quarterly reports
to Town Council
Develop an inventory of capital
assets including but not limited
to facilities of the Town of Vail,
Vail Recreation District and
Vail Resorts for the purpose
of marketing these facilities to
attract destination guests
VLMDAC Vendor time. VLMD
budget line item
Completed
November 2008.
Updates as
necessary
Continue and improve
upon the Commission
on Special Events
efforts
Develop an annual work plan
for the Commission on Special
Events to continue the mission
to support street entertainment
and special events for economic
vitality, year-round fun, sense
of community and increased
quality of experience for guests
and residents
CSE, Special
Events Coordinator
and Economic
Development Office
Staff and CSE time.
CSE and Council
Contribution
budgets
Monthly
meetings. Annual
report to Town
Council
Sustain existing events and
expand or change events to
respond to market changes
CSE Staff and CSE
time. Request
supplemental funds
if necessary.
Event funding
in November.
Respond to
market changes
as necessary
Recruit successful, sponsored
events that attract guests in
the ‘off-seasons’
CSE and the
Economic
Development Office
Staff and CSE
time. Request
supplemental funds
if necessary.
Annual effort
to coincide
with funding
allocations.
Ongoing
identification of
events
Schedule peer
resort visits to
other seasonal
communities to learn
best practices and
trends for economic
sustainability
Continue to fund peer resort
visits for Town Council and
Town of Vail staff to experience
best practices and trends in
competitive resort towns. The
Town of Vail has visited the
communities of Park City and
Steamboat Springs
Economic
Development Office
Staff time.
Funds allocated
in Economic
Development
budget
Annually
Develop
recommendation for
use of Conference
Center funds
Conduct focus groups with
stakeholders and present
results to Town Council
VEAC and
Communications
and Economic
Development
Offices
Staff time 2009
17
Goal 4 Provide support for a quality workforce
delivering world-class service to
positively impact Vail’s economy
Objective Action Step Responsible Party Resources Needed Timeline
Work with the
business community,
Eagle County and
other municipalities
to address future
workforce housing
needs
Provide input into updates of the
Vail Employee Housing Strategic
Plan
VEAC and Economic
Development Office
VEAC and staff time As required
Work with the business
community to support
programs to enhance
delivery of world-class
service
‘Spread the word’ to support
existing customer service
incentive programs such as
Platinum Service Program,
Premier Impressions, Elevate
Excellence and Disney Service
Programs
Economic
Development and
Communications
Offices
Staff time. Budget
in Communications
Office
Annually prior to
ski season
Monitor competitive resorts
programs that may be developed
for Vail to encourage world-class
customer service in Vail hotels,
restaurants, retail and service
businesses, Town departments,
and recreation services with
VEAC and Town Council approval
and potential funding
Economic
Development and
Communications
Offices
Staff time. Request
supplemental
funding if
opportunity is
identified
Annual effort
to coincide
with budget
process. Ongoing
identification of
programs.
Work with the
business community
and Eagle County to
address parking and
transportation issues
for workers and guests
Encourage business owners
to implement programs that
support employees who ride the
bus or car-pool to work
VEAC, Public Works/
Transportation
and Economic
Development Offices
VEAC and staff time.
Possible subsidies for
TOV and businesses
Annual effort to
coincide with
budget process
Research existing bus or car-
pool programs in Eagle County
and share information with the
Vail business community
VEAC, Public Works/
Transportation
and Economic
Development Offices
Staff time.Annual effort to
coincide with ski
season
Work with the Vail Valley
Partnership to develop and
implement a transportation
survey to employers to uncover
the transportation needs of
employees and businesses
Economic
Development Office
Staff and VVP time Complete
November
2008. Update as
necessary
18
Vail Photo by Jack Affleck
Goal 5 Provide input for sustaining, upgrading
and maintaining Vail’s capital assets as it
relates to sustainable economic health
Objective Action Step Responsible Party Resources Needed Timeline
Play a role in
providing input
to master plans,
15-year capital
plan and proposed
development and
redevelopment
plans
Review Town master, strategic, 15-
year capital, and redevelopment
plans and provide feedback that
considers the economic vitality of
the plans
VEAC VEAC time As required
Send a representative to public
hearings of the Planning and
Environmental Commission and
the Town Council to express
the issues and opinions of the
Vail business community on
development and redevelopment
proposals
VEAC VEAC time As required
Identify and monitor economic
drivers in Vail and support those
drivers
VEAC and Economic
Development Office
VEAC and staff
time. Possibly
supplemental funds
for economic impact
studies
1st quarter
2009 and
ongoing
Goal 6 Support the stimulation of diversity of
services and businesses locating in the
Town of Vail
Objective Action Step Responsible Party Resources Needed Timeline
Develop a strategy
to support retention
and development of
existing businesses
Work with local business
organizations to identify and
prioritize needs to retain and
develop established businesses
Economic
Development Office
Staff time.1st quarter
2009 with
quarterly
updates
Develop a program of retention
visits to include representatives
from Town Council, VEAC and
Town Manager’s office
Economic
Development Office
Town Council, VEAC
and staff time.
2 per month
Support a market
analysis
Work to assess existing product
and identify competitor’s strengths
and weaknesses to better
understand Vail’s needs and
propose a course of action to fill
those gaps
VEAC and Economic
Development Office
VEAC and staff time.
Possible funding to
hire consultant.
2009
Seek opportunities
to broaden and
diversify Vail’s
economic base
Create an inventory of businesses
to assist in the development of a
business recruitment strategy
VEAC and Economic
Development Office
VEAC and staff time.
Possible funding to
hire consultant.
2010
Develop a business recruitment
packet
Economic
Development and
Communications
Offices
Staff time. Funding
to design and print
packet
2009
19
VII. Evaluation & Analysis
A. Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis
SWOT Summary
20
WeaknessesOpportunitiesThreats
Environment
Vail Brand
Major Events
Character of Vail
Accessibility & Mass Transportation
Housing
Seasonal Economy
Inecient Facilities
Transportation /
Spatial Barriers
Partnerships
Transportation
Employee Housing
Marketing &
Customer
Service
Controlled
Uncontrolled
Partially
Controlled
Strengths
Environment
• Mountain / valley scenery
• Pristine wilderness adjacent to Vail
• Wildlife
• Gore Creek and waterway tributaries
• Low humidity
• 300 days of sun a year
Vail Brand
• Worldwide name recognition and reputation
• Destination for vacation tourism and part of
nationwide trend to attract wealthy, talented youth
and retirees as residents
Accessibility and Mass Transportation
• Accessibility to Eagle County Regional Airport
• Accessibility of I-70
• Proximity to Denver
• Vail has the largest free bus transportation in the
nation
• Vail’s bus system links to Eagle County Regional
Transportation Authority’s (ECO) bus system with
service down valley
Major Events
• Street Beat
• Spring Back to Vail
• Taste of Vail
• Vail Film Festival
• Vail America Days
• Vail International Dance Festival
• Bravo! Vail Valley Music Festival
• Teva Mountain Games
• Vail Jazz Festival
• Hot Summer Nights
• Vail Farmers Market and Art Show
• Vail Arts Festival
• Kick It 3v3 Soccer
• Gourmet on Gore
• Oktoberfest
• Snow Daze
• Holidays in Vail
Character of Vail
• Quaint mountain village creates a destination
• Architecture displays human traditions in mountain
environments
• Similar architecture elsewhere in the world, which
many outside visitors can identify with
Amenities
• Vail Mountain recreational offerings
• Winter: Skiing, snowboarding, cross-country
skiing, snow-shoeing
• Summer: Hiking, mountain biking, rafting,
kayaking, camping, fishing
• Established businesses with returning patrons
• Vail hotels (bed base) and variety of cost options
• World class restaurants
• Vail Valley Medical Center
• Steadman Hawkins Clinic and Foundation
• Vail Mountain School
• Charming streetscape and stores in Village and
Lionshead
• Intimate parks and village spaces in Village and
Lionshead
• Nordic Center
• Vail Public Golf Course
• White Water Park (Gore Creek/ International
Bridge)
• Dobson Ice Arena
• Ford Amphitheatre
• Bike paths connecting East Vail to Down Junction
• Cycling access to Vail Pass and eastward
• Proximity to Beaver Creek
Community
• High profile non-profit organizations with
fundraising
• Active, committed, full-time residents sustaining
businesses and community life year-round
• Institutional wisdom in long-time residents
• Talented, large group of part-time homeowners
• Surrounding community growth (population and
services)
• Private development and redevelopment
• Private donations and contributions
StrengthsS
21
Partnerships/ Unity
• Relationship between Vail Resorts and the Town of
Vail
• Lack of community on a broader scale – weak unity
to make decisions (i.e. Merchants, Hotels, Town of
Vail, Vail Resorts, Non-profits, Organizations)
• Absence of unified economic strategy
• Lack of alignment in event planning
• Several different organizations with similar,
redundant efforts
• No unified long-term vision
• Lack of central location for community event
information
• Voice of second homeowners sometimes in conflict
with full time residents
Seasonal economy
• Lack of consistent year-round business activity
• Businesses rely on winter tourism
• Business hours are unpredictable in the spring,
summer, fall
• Short-term construction
• Events are not unique to Vail (Lack roots, heritage
and historical relevance)
• Year-round community weakening as more
residents move down valley
Housing
• Gap between employees working in Vail and where
they live
• High price of housing drives away service
employees, which results in decreased business
hours, lack of quality, full-time, year-round
employees and ultimately poor customer service
• High percentage of second-homeowner housing
results in unpredictable population in Vail for
shopping and community events
Transportation / Spatial Barriers
• I-70 noise and congestion
• 1-70 as spatial barrier between neighborhoods
• Distance between West Vail, Vail Village and East
Vail
• Inconsistent road and trail conditions
• Inconsistent pedestrian and bike connections
• Lack of way-finding
Shopper Experience in Vail
• Lack of parking
• Lack of retail diversity
• Not highest level of customer service in
businesses, restaurants and hotels to match guest
expectations
• Construction
• Loss of retail space
• Inadequate retail space
• Difficult and confusing way-finding and event
information signage
Inefficient Facilities
• Underperforming retail stores
• Golf Course buildings
• Older lodging accommodations
• Dobson Arena
• Town of Vail municipal buildings
• Fire stations
• Lack of recreation facilities
• Lack of conference/meeting space
• Lack of teen facilities/ activities
• Town of Vail budget - Unbalanced funding for
necessary infrastructure improvements (i.e. roads,
sidewalks, etc.)
• Public education opportunities
Weaknesses
Opportunities
Marketing and Customer Service
• Increased marketing to attract more international
guests
• Exceed customer service expectations
• Focus on multi-generational audiences
• Continue building on Vail’s renewal
• Build spring and fall business offerings
• Create a cultural center
• Capture down valley business
• Maintaining events that bring large crowds to Vail
• Grow existing events
• Grow group sales category
• Reward excellent customer service
Partnerships
• Encourage unity and cooperation in the business
community
• Form unified communication and marketing
strategy
• Determine Vail’s economic direction
• Channel smaller groups
Transportation
• Increased air service at Eagle County Regional
Airport
• Alternative solutions to I-70 traffic being explored
• Transportation serving down-valley guests and
residents
Employee Housing
• Newly adopted zoning regulations that require
employee housing, for new construction and re-
development
• Enforcement of existing Employee Housing Units
in Vail
• Support and build-on the Vail Local Housing
Authority efforts
W
O
W
22
Survey and Inventory
• Stay relevant to customers, guests and the
economy
• Encourage businesses to survey guests and
welcome change
• Continue to ask the question “Is what we are
doing relevant?”
• Seek ways to create unique experiences
• Inventory businesses and benchmark progress
(good and bad)
• Ask and share what works and what doesn’t
• Benchmark other successes including Beaver Creek
Expand on Vail’s Resources and Strengths
• Maintain and protect environment
• Embrace environmental initiatives
• Make Vail the number one destination for the next
40 years
• Utilize the current redevelopment to
fortify this position
• Committed vacationers
• Affluent guests and part-time residents
• Embrace the non-profits in Eagle County
• Build on Vail’s history and emotional connections
• Independent efforts
• Retail and restaurants
• Lodging
• New skier services
• Program around Vail’s strengths
• Embrace the next generation and begin to look
forward
Opportunities (cont.)
Controlled:
Things we* can influence and/or change
• Maintaining a viable workforce to provide the level
of service required to meet expectations
• Parking challenges
• Challenges with transportation frequency/ service/
routes and linkage with Eagle County Regional
Transportation Authority (ECO)
• Decreasing commercial space for professional
services and businesses
• A growing chasm between the TOV and VR
• The inability to bring unity for the greater good
amongst the Town, VR, the various chambers and
associations.
• Over development
• Threat of wildfire
*‘We’ means Town of Vail Municipality, Vail Resorts Corpo-
ration, Businesses within Vail’s municipal boundaries and
Organizations committed to the success of Vail.
Uncontrolled:
Things we* cannot influence and/or change
• Lack of snowfall/weather dependency/global
warming
• Declining economic indicators (real estate market)
• Weak US dollar
• Rising fuel costs
• Rising travel costs
• Airline instability
• Potential terrorist acts involving the travel industry
• Declining enrollment in schools
• Restrictions on international labor
• An unknown/unstable economy (local, US, global)
• Challenged airlines reducing flights into Eagle
• Talent Pool
• Developers financial stability (development
currently under construction where the developer
runs out of funding)
Partially Controlled:
Things we* can somewhat influence, but
other partners are needed
• Rising Average Daily Room Rates (ADRs)
• Influx of new bed base inventory
• Rising competitive pressure, from other resorts
and attractions
• Competition from other ski resorts
• Competition from all other resort destinations (i.e.
Disney)
• Declining real estate market and RETT funds
• Continued migration down valley
• Continued decline in retail sales tax collections
• Merchant turnover and closings
• Lack of affordable housing
• Pine beetle infestation and impact on quality of
environment
• Water shortage
• I-70
• Noise
• Pass closings
• Congestion
• Lack of mass transit alternative
• Reduced number of youth moving to Vail
• Available work force
• Prolonged construction
• Reluctance of educated youth to do manual labor
Threats T
23
B. Economic Indicators
The purpose of the Vail economic indicators is to
state and monitor the important measures of Vail’s
economy. The indicators were gathered from
existing economic reports and studies and were
further edited and revised by the major contributors
listed on page two of this plan. The result of the
following list was the creation of a table to monitor
and track the following indicators from 2004 into the
future.
The economic indicator table provides a benchmark
of existing economic conditions and a template
to measure progress and track changes in Vail’s
economic activity into the future. The Economic
Development Office is the keeper of the economic
indicator table and will update and change the
table to reflect the most up-to-date and relevant
data available. The economic indicator table
was adopted, in draft form, as part of this plan,
however, because it is a living document that will
undergo monthly changes, it is not included in the
final copy of this plan. It is anticipated that the
Economic Development Office will report the results
of the economic indicator table twice annually to
the Council in relationship to the economic goals,
objectives and action steps stated in this plan.
The following economic indicators are organized
in six categories, to reflect Vail’s most important
economic forces which include: Tourism, Real Estate,
Town Revenue, Business Growth, Environment and
Macroeconomic.
Economic
Indicators
Tourism
Real
Estate
Town
Revenue
Business
Growth
Environment
Macro-
economic
24
Vail Photo by Jack Affleck
Tourism
• Lodging Report: Occupancy (Mountain Travel Research
Program - MTRiP)
• Lodging Report: Average Nightly Room Rate (MTRiP)
• Event Attendance (Commission on Special Events – CSE)
• Golf Course & Dobson Arena Attendance (Vail
Recreations District - VRD)
• Parking Counts (TOV Public Works/Transportation
Office)
• Airport Stats (Denver International and Eagle County
Airports)
• Information Center Visits (TOV Communications Office)
• Tunnel Traffic (Colorado Department of Transportation -
CDOT)
• Holiday Timing (Easter, 4th of July, Christmas)
• Web usage on www.vail.com (Vail Resorts)
• Fuel prices (TOV Public Works/Transportation Office)
• Vail Mountain open and close dates (Vail Resorts)
• Fuel Prices (Energy Information Administration)
Real Estate
• Total Real Estate Sales (Eagle County Assessors Office -
ECAO)
• Average Sales Price (ECAO)
• Price per sq.ft. (ECAO)
• Gross Sales Amount (ECAO)
• List to sale price ratio (Land Title Guarantee Company)
• Residential properties sold (ECAO)
• Commercial properties sold (ECAO)
• Dwelling units constructed (TOV Community
Development)
• Hotel units constructed (TOV Community Development)
• Fractional Fee units constructed (TOV Community
Development)
• Net new commercial square footage constructed (TOV
Community Development)
Town Revenue
• Sales Tax by Sector by neighborhood (TOV Finance
Department)
• Total Sales Tax vs. Inflation (TOV Finance Department)
• Real Estate Transfer Tax (TOV Finance Department)
• Town Reserves (TOV Finance Department)
• Property Tax (TOV Finance Department)
• Construction Use Tax (TOV Finance Department)
Business Growth
• Banking Deposits in Eagle County (FDIC)
• Same Store Sales reports (MTRiP)
• Visitors (Vail Resorts)
• Population Estimates (State of Colorado)
• Unemployment Rate (Colorado Department of Labor -
CDOL)
• Employment (CDOL)
Environment
Partner with Environmental Sustainability team to monitor
environmental impacts that relate to sustainable economic
health for the Town of Vail, such as:
• Snow Pack – local, state, national
• Wildfire Mitigation – Number of trees removed
• Wildlife
• Air pollution
• Creek water levels
Macroeconomic
• Consumer Confidence Index (US Conference Board)
• U.S. dollar vs. Euro (US Federal Reserves)
25
Vail Photo by Jack Affleck
VIII. Glossar y of Terms & Acronyms
CSE – Commission on Special Events
CFA – Citizens For Action
DRB – Design Review Board
ECONOMIC DEVELOPMENT – (As defined by the American Planning Association) Economic
development is the process of improving a community’s well-being through job creation,
business growth, and income growth (factors that are the typical and reasonable focus of
economic development policy), as well as through improvements to the wider social and
natural environment that strengthen the economy.
Economic – Profitable; cost effective. Considered or studied with regard to human needs.
Economic Indicator – A measurement that has a link to the economic activity of Vail.
Economics – Science of the production and distribution of wealth.
Economy – The wealth and resources of a community.
ECEC – Economic Council of Eagle County
MTRIP – Mountain Travel Research Program
PEC – Planning and Environmental Commission
ROI – Return on investment
VEAC – Vail Economic Advisory Council
VLMD – Vail Local Marketing District
VLMDAC – Vail Local Marketing District Advisory Council
26
www.vailgov.com