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HomeMy WebLinkAbout2011-07 Establishing the 2011 Payment of Fees_in_Lieu for Each Employee to be Housed RESOLUTION NO. 7 Series of 2011 A RESOLUTION ESTABLISHING THE 2011 PAYMENT OF FEES -IN -LIEU FOR EACH EMPLOYEE TO BE HOUSED, AS REQUIRED BY CHAPTER12 -23, COMMERCIAL LINKAGE, AND FOR EACH SQUARE FOOT, AS REQUIRED BY CHAPTER 12 -24, INCLUSIONARY ZONING, VAIL TOWN CODE; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on April 3, 2007, the Vail Town Council adopted of Ordinance Nos. 7 & 8, Series of 2007, establishing Commercial Linkage and Inclusionary Zoning requirements in the Town of Vail; and WHEREAS, pursuant to Sections 12 -23 -5 and 12 -24 -6, Methods of Mitigation, payment of fees -in -lieu is one of five (5) methods by which the mitigation of employee housing required may be accomplished; and WHEREAS, in accordance with Sections 12 -23 -5 and 12 -24 -6, the fees -in -lieu for each employee to be housed and for each square foot of employee housing required shall be established annually by resolution of the Vail Town Council; and WHEREAS, the Vail Town Council has determined that the proposed fee -in -lieu amounts accurately reflect the affordability gap between a two person household earning 120% of the Area Median Income (AMI) and the 2010 Median Cost per Unit; WHEREAS, the Vail Town Council has determined the proposed fee -in -lieu amount should be calculated and then averaged with the two (2) previous years to more accurately reflect market conditions; and WHEREAS, the Vail Town Council finds that this Resolution furthers the development objectives of the Town and is in the best interest of the Town as it promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances the availability of employee housing within the Town of Vail. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: 1. Establishment of Fees -in -Lieu a. The fees -in -lieu for each employee to be housed or for each square foot of employee housing provided in accordance with Chapters 12 -23, Commercial Linkage, and 12 -24, Inclusionary Zoning, shall be established annually by resolution of the Town Council, provided that, in calculating that fee, the Town Council shall include the net cost (total cost less the amount covered by rental or sale income) of real property and all related planning, design, site development, legal, construction and construction management costs of the project, in current dollars, which would be incurred by the Town to provide housing for the Resolution No. 7, Page 1 of 3 Series of 2011 employee to be housed or for each square foot of employee housing provided in that year; b. An administrative fee of $3,000 /per employee or $3.65 per square foot shall be added to the amount set forth in paragraph a hereof. C. Fees -in -lieu shall be calculated each year and that amount shall be averaged with the previous two (2) years calculated fees - in -lieu to establish the new annual fees -in -lieu. d. Fees -in -lieu shall be due and payable prior to the issuance of a building permit for the development. e. The Town shall only use monies collected from fees -in -lieu to provide new employee housing. The calculation formula for fee -in -lieu has been attached for reference (Exhibit A). 2. 2011 Payment of Fees -in -Lieu Amounts a. Fee -in -lieu per employee (commercial linkage) _ $177,533 b. Fee -in -lieu per square foot (inclusionary zoning) _ $240.65 3. Effective Date of the Resolution This Resolution shall be effective immediately upon adoption. INTRODUCED, READ, APPROVED AND ADOPTED this 19th day of April, 2011. 364;�p Richard D. CI elan , .tdlayor, Town of (0 Vail *S oo * 0 00 9 ATTEST. Lorelei Donaldson, Town Clerk Resolution No. 7, Page 2 of 3 Series of 2011 Exhibit A 2011 Fee -in -Lieu Calculation Formula 120% Area Median Income (2- person household)* $81,600 Affordable Monthly Housing Payment $2,040 Property Taxes /Insurance /HOA (20% of Housing Payment) $408 Mortgage Payment $1,632 Maximum Mortgage Amount* $287,431 Affordable Purchase Price $302,559 Average Square Feet of Units 825 2010 Median Price per Square Foot (all units) ** $596 Cost per Unit $491,700 Affordability Gap /Payment per Unit in Lieu $189,141 ** *Assumes 5% down, 5.5% interest for 30 years. Gap per Employee (1.5 emps /household on average) $126,094 2010 Gap per Employee (not averaged) $71,299 2009 Gap per Employee $326,206 Administrative Fee per Employee $3,000 Fee per Square Foot per Employee $229.00 2010 Fee Per Square Foot per Employee (not averaged) $87.00 2009 Fee per Square Foot per Employee $395.00 Administrative Fee per Square Foot per Employee $3.65 Fee -in -Lieu per Employee $177,533 — Fee -in -Lieu per Square Foot $240.65 (Note — these figures to be established annually by the Vail Town Council) * As published by the US Department of Housing and Urban Development ** Calculated by RRC Associates from the 2010 Eagle County Assessor's Data Base * ** Rounded to the nearest dollar Resolution No. 7, Page 3 of 3 Series of 2011