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HomeMy WebLinkAbout2008-06 Estblishing the 2008 Payment of Fees-in-Lieu for each Employee to be HousedRESOLUTION NO. 6 Series of 2008 A RESOLUTION ESTABLISHING THE 2008 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 2007 Median Cost per Unit; 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 employee to be housed or for each square foot of employee housing provided in that year; 1 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 due and payable prior to the issuance of a building permit for the development. d.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. 2008 Pavment of Fees-in-Lieu Amounts a. Fee-in-lieu per employee (commercial linkage) _$166,464 b. Fee-in-lieu per square foot (inclusionary zoning) _$301.65 3. Effective Date of the Resolution This Resolution shall be effective immediately upon adoption. INTRODUCED, READ, APPROVED AND ADOPTED this 15th day of April, 2008. 0'*90~ Richard D. Clevela ayor, own of Vail oRAVO ATTEST: orel i Donaldson, Town Clerk 2 Eghibit A 2008 Fee-in-Lieu Calculation Formula 120% Area Median Income (2-person household)77,880 Affordable Monthly Housing Payment 1,947 Property Taxes/Insurance/HOA (20% of Housing Payment) 1g558 Mortgage Payment Maximum Mortgage Amount*234,179 Affordable Purchase Price 243,023 Average Square Feet of Units 825 2006 Median Price per Square Foot (all units)596 Cost per Unit 491,700 Affordability Gap/Payment per Unit in Lieu 245,196 Assumes 5% down, 7% interest for 30 years. Gap per Employee (1.5 emps/household on average)163,464 Administrative Fee per Employee 3,000 Fee per Square Foot per Employee 297 Administrative Fee per Square Foot per Employee 3.65 Fee-in-Lieu per Employee 1669464 Fee-in-Lieu per Square Foot 301.65 Note - these figures to be established annually by the Vail Town Council) 3