HomeMy WebLinkAbout2019-28 Purchase of Homestake at Vail, Unit B212 RESOLUTION NO. 28
SERIES OF 2019
A RESOLUTION APPROVING THE PURCHASE OF THE RESIDENTIAL PROPERTY
KNOWN AS HOMESTAKE at VAIL, UNIT B212, 1081 VAIL VIEW DRIVE, VAIL,
COLORADO 81657
WHEREAS, Judith Ann Dyer ("Seller") owns the real property more particularly
described and depicted in the Contract to Buy and Sell Estate, attached hereto as Exhibit
A and incorporated herein by this reference (the "Property"); and
WHEREAS, the Town wishes to purchase the Property subject to the terms of the
Contract to Buy and Sell Real Estate (the "Contract");
NOW, THEREFORE, be it resolved by the Town Council of the Town of Vail,
Colorado:
Section 1. The Town Council hereby approves the Contract and authorizes the
Town Manager to execute the Contract on behalf of the Town in substantially the
same form attached hereto as Exhibit A and in a form approved by the Town
Attorney.
Section 2. This Resolution shall take effect immediately upon its passage.
INTRODUCED, READ, APPROVED AND ADOPTED this 18th)d y of June 2019.
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Resolution No.28,Series of 2019
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TOWN OF VAIL '
Memorandum
To: Vail Town Council
From: George Ruther, Housing Director
Date: June 18, 2019
Subject: Resolution No. 28, Series of 2019 a Resolution Authorizing the Purchase of
Homestake at Vail, Unit B-212, 1081 Vail View Drive, Vail, Colorado
1. SUMMARY
The purpose of this resolution is to authorize the purchase of Homestake at Vail, Unit B-212.
2. BACKGROUND
The availability of housing for its employees remains an ongoing need for the Town of Vail
municipal government. As the third largest employer in Vail, the Town of Vail too is challenged
by the need for housing for its workforce. Over the years the Town has taken a wide range of
approaches to addressing its employee housing needs, including "buying down" homes for
purchase by Town of Vail employees.
The Homestake at Vail home is a great starter-type home for a Town of Vail employee
interested in home ownership in Vail. The home is a +/- 580 square foot, one bedroom/one
bathroom, end unit with easy access to recreation and to free Town of Vail public transit. The
home includes surface parking for two vehicles. Monthly association dues are currently$368
and include gas heat, water, waste disposal and recycling, snow removal, common area
maintenance, and common area insurance. The home is offered for sale at$359,000. A similar
home in the Homestake at Vail development recently closed for more than $360,000.
The Homestake at Vail is an older property in Vail. Town of Vail files indicate the property was
developed in the mid-1970's. It is currently in original condition, yet very good condition, with
only a few minor updates completed over the years. An initial inspection of the property has
been completed. No significant issues were identified during the inspection. There is need,
however, to update the interior fixtures and appliances and replace the seal damaged south
facing windows. An initial estimate of the window repairs is approximately$6,500 with interior
updates totaling an additional +/- $10,000. The property is being offered for sale"as is".
3. RECOMMENDATIONS
A proposal for purchase has been prepared with participation and collaboration with several
Town of Vail Departments, including administration, finance, public works, human resources
and housing. The proposal for purchase recommends the following:
1) Execute a purchase contract subject to an appraisal, inspection, and other due diligence
provisions
2) Acquire the property subject to an assignable contract
3) Repair the seal damaged windows prior to resale ensuring a transferrable warranty
4) Record a primary residence deed-restriction and a Town of Vail first option of purchase
on the home.
5) Place a maximum resale price appreciation cap of 3% per annum on the home through
the deed-restriction
6) "Buy down"the value of the home and offer it for sale to a Town of Vail employee
7) Offer the home for-sale to a Town of Vail employee, subject to the deed-restriction and a
first option to purchase. This approach mirrors the Red Sandstone Townhomes model.
8) Funding for the initial purchase and subsequent"buy down"would likely come from the
Town's capital fund (TBD)
4. NEXT STEPS
If authorized, the Town staff will proceed forward with the next steps outlined in the contract for
purchase of the residential property. Closing and possession is presently set for July 2, 2019.
5. ACTION REQUESTED
Does the Vail Town Council authorize the Town Manager to execute the contract to Buy and
Sell Real Estate to facilitate the Town's purchase of Unit B-212, Homestake at Vail
Condominium, 1081, Vail View Drive, Vail, Colorado, consistent with the recommendation
outlined herein?
Town of Vail Page 2