HomeMy WebLinkAbout1981-11-30 Town Council MinutesPUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
i
WILTO: OK, let's call this meeting to order. The purpose of this
evening's meeting, first of all,we'll be going through a
rather formal public hearing process having to do with the
Lionshead Improvement District. We have some attorneys here
and they have to do what they usually do, so if you'll bear
with that part of it, they'll go through their process and
then you all will have a chance to say whatever you'd like for
or against the improvement district. Before we get into that
I should announce who is here and who isn't here. The entire
Town Council is present with the exception of Rodney Slifer
who is out of town. Also present is Loring Harkness who is
bond counsel for the Town of Vail and Jeff Winston from Gage
Davis and Associates who is also here to advise us. With that
I might mention that after the public hearing the Council will
open a discussion on the ordinance itself but there will be no
vote on the ordinance this evening. The actual vote will take
t:
place next Tuesday evening. So at this time 1 would like to
introduce Loring E. Harkness who is with the firm of Ballard,
Spahr, Andrews and Ingersoll to start the formal presentation.
HARKNESS: Thank you, Bill. Bill's already made my apology for me and has
indicated that the public hearing tonight will be rather a
formal process but its basic purpose is to provide information
to affected property owners and as you know, the Lionshead
Improvement Project .was initiated by a resolution of the Town
Council ##21, Series 1982, which was adopted on October 5, 1982
and thereafter notice of this hearing was published in the Vail
Trail on November 12, 1982 and the notice and form of protest
were also mailed to all affected property owners by first
class mail on November 12, 13 and 16. I'm told that the
mailing was so large it required three days to accomplish.
As Bill has indicated, the purpose of the hearing is for the
Town Council to receive evidence concerning the proposed
district of the construction and installation of improvements
therein and the methods of proportioning the assessments which
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 2
•
would be levied to pay the cost thereof. And it's also for
the purpose of hearing and passing on the protests, objections
or comments made by the general public and also to discuss the
form of the ordinance to be considered for adoption on December
5th. Many of the words that will be spoken tonight will be
directed towards providing evidence to the Town Council upon
which to make certain findings that are required by the Town's
procedural ordinance in the case of all local improvement
districts and in order to make sure that all of the necessary
facts are brought forward I'll be calling a series of witnesses
and they will include Town Manager Richard Caplan, who will
talk about the background and description of the project and
participation of the Town in the financing. Dick Ryan, the
Director of Community Development, will provide further detail
in connection with the project. Jeff Winston, the Town's land-
scape architect, from Gage Davis Associates will talk about the
plans for the project which are evidenced on the maps and
renderings on the bulletin board. Don Wallace who's a real
estate economist and consultant to the Town has a great deal
of experience in assessment procedures. Bill Pyka will talk
a little bit about the financing of the improvements and then
there will be an opportunity for public comment. So with that
sketch of who's going to talk about what, I'd like to call each
witness in turn and then,,with the Council's p=:-mis�ion, ask
that any questions be directed to thos(- people be mate at the
conclusion of each session. Rich Caplan, I guess you're en
first. Please state your name, address and position for the
record please.
CAPLAN: Richard Caplan, Town Manager, 75 So. Frontage Road, Vail,
Colorado.
HARKNESS: I'd like you to start your testimony, Rich, with some back-
ground on the project and I understand that .in aid of this
you have a bit of a slide presentation that Jeff Winston will
assist .you with.
PUBLIC HFARiNG
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 3
CAPLAN: I'd be happy to answer any questions, but I'd like to call
on Jeff Winston first to explain the background on the program
of the Lionshead Improvement Program through some slides that
we have prepared. Jeff.
WINSTON: The purpose in meeting tonight is to address the problem that
concerns all of the Town of Vail, both Lionshead and Vail
Village. We have the opportunity at this point in time to
bring to fruition a number of years..of effort by a great many
people to bring about some significant and important improve-
ments to Lionshead we think will be of benefit to not only
Lionshead but the entire Vail community. It's a program that
most people in Lionshead and throughout the village feel is
essential, not only for Lionshead and the Lionshead of the
future and for all of the Town. It brings us the opporunity
to bring the entire Town up to a level of finish and producti-
vity in terms of commercial activity in support of the major
industry here in town - skiing - all will benefit both residents
and commercial property owners as well. First some background
might be in order. When it was initially established, Lions -
head was planned to be a contemporary European resort prototype.
It was to be the second major doorway to the mountain and a
number of studies were undertaken to identify the character of
the village and how it should operate, and large plazas were
introduced and it was very well thought out. Over the years
in a very short period of time it was implemented and gained
solid momentum from the beginning and it was turned over to
the Town of Vail in 1978. However, since its earlier days
time and deterioration have taken their toll. The brief
overview now is now is the time when we have a chance to
go back and revisit the original plan and make some adjustments
and changes that are essential to Lionshead's future and in
fact, all of the Town, frankly. Why does Lionshead need help?
PUBLIC HEARING
Y-IONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
i Page 4
Over the years time and weather have taken their toll. There
are many areas of the mall that have begun to deteriorate
although the best technology at the time was implemented.
The materials selected have begun to wear and fray around
the edges. A lot of areas were not finished completely.
There were areas where there are not only appearance problems
but safety problems to people walking the.mall. Some <areas
were never finished. Design changes that were introduced
created new problems. In areas where plazas were invisioned
landscaping was introduced which give Lionshead a lot of the
quality that it has but it has become a serious impediment to
stores and merchants ability to attract people from the major
walkways. Some of the plazas just never reached their potential.
Several years ago, back in the spring of 1979, the Town initiated
at the request of the Lionshead Merchants, a series of options
to address the problem and three sessions were held and two of
the sessions really dealt with Lionshead's immediate sur-
roundings. Merchants, property owners, Town officials, interests
parties, interested citizens rolled out in day and a half work-
shop sessions at each one of these workshops to provide their
best ideas about what changes needed to happen, new ideas,
identifying th, problems and coming up with various kinds of
solutions. These various ideas were collected, but together
in an overall master plan that was then presented to the work-
shop participants and later to the Town Council for their
approval as the general master plan and we then proceeded with
a long period of about six months of subsequent smaller work-
shops dealing area by area with all of the problems and all
of the improvements that nec,d to be made. Some important
accomplishments have been made since that time, The east and
.
west entrances of Lionshead have been dramatically changed.
Those of you who can remember the old days. The east entrance
has undergone a similar transformation. It's about one half
to two thirds the completed at this point. Over $300,000 of
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
• Page 5
Town's funds have been spent in these two improvements alone.
Additionally, temporary resurfacing of the Lionshead Parking
Structure and kiosks and improvements in the lighting system
have been made and of course a major effort in the terms of
planting and landscaping throughout Lionshead. There still
are many areas that need improvement. Many areas again that
were unfinished. There are a number of ragged edges that just
are not as attractive and do not contribute a bit to Lionshead
as a viable place to live or shop or to attract tourists. Not
•
only in the mall areas but in the outlying areas significant
areas are needed. Through the workshop process alot-of these
improvements were identified. In many areas it means shifting
the location of planters so that pedestrians can get closer to
the shops so as not to block access, a great desire was
indicated to have a central focal point to attract people
much as the fountain near the covered bridge in Vail Village.
Something with a similar attraction and level of quality that
really becomes the focal point and center of gathering for
LionsheadA. The result of all of that was the general urban
design or master plan of improvements. Many of those
improvements are illustrated in the perspective drawing on
the right. They include a number of different kinds of
improvements. The most dramatic change is replacing all thr-•
concrete with stamped concrete throughout
the mall. Replacing that with concrete and interlocking
•oncrete pavers, a material that has been used successfully
on the east and west entries. It implies moving ;Lome of the
planting areas into the walkways an,,' ,pening up some of the
walkways, reusing many of the plant materials, introducing
more trees, benches, sitting areas, kiosks, directory signs.
In the central plaza coming down from the north day lot is
invisioned a large fountain and green space and sculpture
areas have been identified throughout the mall. In addition,
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 6
emergency access which is not lacking throughout the mall
would be provided from one end to the other and in thi; out-
lying areas the significant areas would include sidewalks
and lighting in the mall as well as the outlying areas.
Also included as a part of the plan but not at public expense
is the provision for commercial expansion to allow shop owners
to expand beyond the present limits of the right of way lines
to encourage new commercial development, upgrading of store
fronts and generally upgrading as you see presently in the
Gondola Building. Those have been some of the initial improve-
ments that have been made as a result of the urban design plan
recommendations. Obviously, the key question is how to finance
the project. The Town of Vail has many different demands on
its operating budget. Town revenues are generated from
property taxes and sales tax. Many of the improvements you
saw had finance out of the year's proceeds. But a project of
this scale and magnitude would take 15 years to finance at
this rate. The answer that came out of the workshop was that
we needed some form of a public and private partnership where
the Lionshead property owners would take upon themselves a
commitment to raise some of the money and the Town would take
upon itself a commitment to raise the rest. The Lionshea('
Merchants, the way to raise that kind of money through the
pr vate sector is through what is called a Special Improvement
District, which sells a bond and then repays that bond out of
tax assessments on the individual properties in the sp-=cial
improvement district. In this case would be Lionshead. The
Town for its part would propose to raise its share of the money
through a general obligation bond which comes from the proceeds
of sales tax and the sales tax rate in Vail would not be raised
as a result of this effort, but .increasing business and having
• paid off other bands previously.provides thl opportunity.to
raise the money for this obligation bond through sales tax
proceeds. What are the costs? Generally the costs are
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1984
. Page 7
broken down by the type of use between commercial and
residential properties and also by related to the distance
from the mall. As you see here, commercial properties range
from about .8� a square foot the further distance from the
mall to $3.53 a square foot for those commercial properties
fronting on the mall. Residential properites would contribute
a significantly less per square foot cost in the sense that
there properties on the mall would be paying as high as $1.42
actually, a $1.41 here, down to about .7� a square foot furthest
from the mall. As an example, one square foot of store front
this is over the entire cost of the project, that would be then
financed over 10 - 12 years. Financed in this way, a com-
mercial property fronting directly on the mall would pay .83Q
a square foot per year and a residential property furthest from
the mall would pay about a, penny and a half a square foot per
year financed over that period.of time. ):I
The benefits. Obviously Lionshead is going to benefit.
We hope that the attractiveness that is brought about through
the improvements will make Lionshead a more competitive and
viable place to attract tourists from the front range as well
as the overnight tourist. Over 50% of the skies that visit
Vail go through Lionshead to the gondola. And we think and
the Council has expressed a desire that their impression of
Vail comes to a great degree from their experience in Lionshead.
To the degree that Lionshead is improved and they have a
pleasant experience there, they're enthused to come back
many times and we think that that helps tie both neighborhoods
together and again expands the competitiveness of Vail as a
ski resort to compete with other ski resorts. So it's not just
,.a program merely to assist Lionshead. We think it's going to
have benefits for the entire community. Under the present
provisions, if both bond issues are approved, we would begin
the second general obligation.bond issue sometime in February.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
• Page 8
If that election is successful and this special improvement
district is successful, we would begin immediately an intensive
design process and begin construction sometime in mid• -April or
the early part of May. Now we would be in a fast track process.
We would begin some of the work before the design is completed
in other areas. We would see construction going at a very
excellerated rate flat out through November, obviously taking
a break through the ski season and the finishing touches happening
next year in April, May and June of next year, hopefully by the
Fourth of July having an opening ceremony to finalize the whole
construction. It's a fairly complex issue. The Town has made
its commitment contingent upon Lil.onshead doing its share of the
work, pulling its part of the load, so it really requires two
issues. A special improvement district issue and Lionshead will
raise approximately $1 million dollars, the general obligation
bond by the Town will raise $1.6 million dollars for a maximum
cost of $2.6 million dollars for Lionshead. It will require
support not only for this issue currently being discussed but
also the general obligation bond. To summarize however, many
people have invested an awful lot of time over the last 2 or 3
years. At the same time inflation continues to deal with cost
of construction. The mall continues to deteriorate. Some
improvements that have been made this year by the Town, temporary
resurfacing have helped to stay that, but have really not reversed
the trend and the deterioration continues and the problems are
still there. All of us who have been involved in the project
feel that now's the time, 'the perfect time for Lionshead to
pull itself up by the bootstraps and put on a new face and make
some dramatic changes and regain as much of the momentum that
has been lost over the last several years and help Lionshead
•
and Vail.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 9
HARKNESS. Thank you, Jeff. I think the slide show gives an excellent
overview of some of the issues that will be discussed in greater
detail this evening through the presentation of the .succeeding
speakers. Rich, I'd like to return to your part of this program
and i'irst observe that there is a great deal of evidence of a
public/private undertaking in the slide presentatioD and to
me that indicates that the Town conceives that there will be
general benefits to the community derived from this project. I
wonder if your could give us your views on the general benefits
of the Town.
CAPLAN: We feel that by improving Lionshead there will be more overnight
guests staying in the Lionshead area, not only during the winter
season but year round, we also believe that it would be therefore
generating more business activity for the restaurants and the
retail shops in the area. Also feel that with the improvement
with the construction of the Lionshead Parking Structure that
there is adequate parking in the area to accommodate increased
activity and that the major attractions in the area in particular
the gondola, is looking at as actively promoted the summer
marketing of Vail as a summer attraction and other activities
• including creation of a miniature golf activity and other
diversification of activities there which would improve the
general business activity in the area.
HARKNESS: And in consideration of those general benefits to the Town, the
slide presentation also indicated that the Town was going to
participate in the cost of making improvements. Can you describe
how allocation would be made in some more detail?
CAPLAN: The Town would, if the improvement district is approved by the
Town. Council, the Town would go to the reside-nts of the community
at large to have them consider a general obligation bond of
$1.6 million which would be a general obligation of the Town
icapital improvements budget. That revenue comes from sales tax
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 10
• generated by revenues from throughout the Town, not just from
the Lionshead area. So it would be a general contribution of
retail sales tax plus a particular contribution of the property
owners in Lionshead proper.
HARKNESS: And the $2.6 million total cost of the project as proposed to
the Town through the general obligation bonds would bear $1.6
million and the improvement d:i.strict through the issuance of
special assessment district bonds $1.0?
CAPLAN: That's correct.
HARKNESS: Rich, does the staff have a general recommendation to make to
0 the Council in connection with the Lionshead Improvement Program?
CAPLAN: Yes, it is the recommendation of the staff of the Town of Vail
that the Town Council favorably consider the adoption of proposed
Ordinance #40 at its regular meeting next Tuesday night after
public hearing this evening and proceed with establishment of the
special improvement district contingent upon the voter approval by
the voters of the Town of Vail.
HARKNESS: That concludes this segment of the program and consideration of
the planned presentation of this evening. I think my preference
might be to hold questions until the opportunity at the end of
• public comment. Would I'd like to do is go on next to Dick Ryan.
Dick, would you state your name and address and occupation for
the record?
RYAN: Dick Ryan, 75 South Frontage Road, Community Development Director
for the Town of Vail.
HARKNESS: And would you also describe briefly your responsibilities in
connection with the project?
RYAN: Yes, my responsibilities are, about three years ago the property
owners, merchants and people in Vail/Lionshead came to me and.
said that Vail/Lionshead needed some major improvements and needed
them fairly soon because of the deterioration that had taken place
in the Vail/Lionshead Mall. I then went to the Town Council who
allocated funds in order to do the study for the improvements to
the Vail/Lionshead area. In June of 1979 the Town had three major
PUBLIC HEAPING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 11
• workshops - one for Vail/Lionshead, one for Vail Village and one
looking at the connection between Vail Village and Vail Lionshead.
The average attendance was approximately 50-60 people at those
three workshops. After the initial workshop in Lionshead in June
there were many many followup workshops in July, August, September,
October and I believe up until November of 1979. Again, the pur-
pose was to define the plan and get input from the people who
were interested in the plan. Gage Davis and Associates of Boulder,
Colorado, were the consultants who worked with the staff in -coming
up with the plan. In June of 1980, Town Council approved the Vail/
is Lionshead as the Urban Design Guide Plan for Vail/Lionshead. This
has been used for east and west Lionshead entries plus improvements
to the Vail 21 building, to the Gondola Building and to the Lift -
house Lodge. The anticipation is that there are other possibilities
for commercial expansions to also use the plan.
HARKNESS: OK, and in connection with the undertaking that you just described,
would you identify the area within the Lionshead vicinity as
appropriate for a special improvement district?
RYAN: This was done with the assistance of Larry Smith and Company, who
have a great deal of experience throughout the country in setting
• up special improvement districts for mall areas. Which determin-
ation in working with them is that boundaries for the special
improvement district that they thought was viable was from the
Vail Spa and the Mark on the west end over to the edge of the
Vail/Lionshead parking center and the Lodge at Lionshead on the
r,ast end. The north boundary is the Frontage Road and basical__y
the south boundary is Gore Creek.
HARKNESS: OK, and then once the boundaries of the district had been established
did you then go about attempting to identify the owners of all the
properties affected?
RYAN: Yes, this was done a couple years ago by a search of the County
• Assessor's Office of the affected property owners,. The list ha,
been on file with the Community Development Department for several
weeks and one was mailed out to all present property owners and
was also published in the Vail Trail December 12th.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 12
DARKNESS: In addition to searching the records of the County Assessor in
Eagle, did you also take steps to ascertain the current owners
of property and their addresses for the purpose of mailing notice
of this hearing?
RYAN: Yes, we made a special effort by looking for timeshare units in
Lionshead, calling timeshare managers asking for their owners.
Also I did spend at least three quarters of a day down at the
County Assessor's Office just generally rechecking to make sure
I had a list of the current property owners.
HARKNESS: And in the course of preparation for this hearing, did you also
• with the assistance of consultants, make- available for public
inspection certain maps and renderings and cost estimates and
other information concerning the project?
RYAN: Yes, this has been on file in the Community Development Department
and also several maps have been on file of the Town Council
Chambers.
HARKNESS: I wonder if you could identify each of the maps or renderings and
tell what the purpose of each of them is.
RYAN: The first map is the map that shows the distance from major
improvement which would be Vail/Lionshead Mall to the affected
• properties and how many feet it is measured from those specific
areas. The second map shows lots and blocks that we have of
record for the assessment district area. There is also a list
of all the lots that: are in the assessment area. The third map
to the right shows the improvements that specifically are proposed
to be made in the mall area itself. There's also on the wall a
general description of improvements in the Lionshead area, the
estimated cost, the notice that was sent out to all property
owners. On the wall to the left is the proposed improvements
that would be made in the outlying area, landscaping, sidewalks,
lighting. To the f�Lr left is a sketch of what we hope Lionshead
• will look like when the improvements are completed. There is a
cascading water Call, there is a sculpture, benches, street lights
etc.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 13
•ARKNESS: And, finally, after the adoption of the resolution initiating this
project, did you and members of your team hold any informal meetings
with businesses or business groups in order to explain the project
more fully?
RYAN: Yes, we did talk to some managers of condominium projects about
the proposal. The results of a meeting last week with the
Merchants Association of Lionshead anc'._ I did go through the
project again. There has also been in the past many many meetings
where this has been discussed.
HARKNESS: Thanks, Dick.
ARKNESS: Jeff Winston, you're next and your presentation by the slide show
was so complete that I risk duplicating some of your testimony,
but I would like to have you state your..name, address and occupation
for the record.
WINSTON: Jeff, Winston, working for Gage Davis and, ssociates, Boulder,
Colorado,.address is 1985(':Glenwood, Boulder, Colorado.
HARKNESS: OK, with reference to the maps that have been identified by Dick
Ryan, I wonder if you could ;provide in greater detail a description
of the improvements that are proposed to be made.
WINSTON: There are really three key maps that id.-:!nt.fy the improvements.
• No. 1, the last of the three on this side, the shaded area re-
presents the area where the improvements are to be made. The
improvements in that area generally consist of replacing most of
the or stamped concrete in the area that is deteriora-
ting, that would be replaced by interlocking concrete brick pavers.
As I mentioned, this is being used in the east and west end entries.
This is brick paver that's layed much like brick on a bed of sand
on top gravel. The primary advantage is that we've discovered the
use of this material at this altitude doesn't tend to swell and
break apart as normal concrete does. And secondly, it can be re-
moved for replacing utilities and then reinstalled putting the
same material back in place and the maintenance cost is significantly
reduced. The appearance is similar to brick ani1 we find it very
attractive material for all of those reasons. There would also be
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
age 14
several of the planting islands, a mall area that would be re-
located switched from their present location in front of the
stores further into the middle of the walkway in front of each
of the storefront isles. We intend to preserve as much as possible
the existing landscaping, reuse that landscape material that is in
the areas to be relocated. I.guess a key point in the improvement
is to try and create a series of plazas with focal points. Places
where the pedestrians, the tourists and the overnight visitors and
guests can gather, one plaza leading to another, each one is
interesting, has its own character and is improved by the private
improvement of the shops in each of those areas. Additional
planting over and above what is there now as well as lighting,
lighting fixtures throughout the mall would be done to complement
that, In the central part of the mall which is the artist's con-
ception on the left, generally catches the spirit that we'd like
to achieve throughout the mall area, particularly in this central
plaza. That includes the water feature that is demonstrated in
numerous places, water features just have that magic ability to
become a photographic focal point as well as backdrops. It removes
a large area of the descending staircase from the north day lot,
• opens that whole plaza up into a pedestrian space and gives frontage
to the buildings around the pedestrian plaza. There's some more
practical improvements planned in the mall area, including replacing
the electrical system which has been problemmatic for a number of
years and making maintenance a little easier to do and certainly a
lot more reliable. In:.a,ddition, emergency access will be provided,
providing ramps and stairs, some areas are just, unaccessable to
emergency vehicles. There are then a number of finishing touches
we envision - bicycle racks, kiosks, directory signs, planters and
other fine touches we think that, will make it a more enjoyable
place to visit as well as reside. In the outlying areas there are
• a number of sidewalks planned, landscape improvements on the sur-
rounding lands as well as peripheral lighting on those sidewalks
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
16ge 15
in the outlying areas. We think this will benefit not only those
fronting directly on the mall but all of the properties in the
general vicinity.
HARKNESS: Thank you. Is your office also responsible for furnishing the
estimates for the cost of the project?
WINSTON: Yes, working with the Town staff, the building departmant, I've done
several cost estimates, refining the cost estimates several times
over the period of time since the plan was initially developed.
HARKNESS: Of the total $2.6 million, can you break that down into the costs
associates with the different categories of improvements in a general
way?
WINSTON: Very generally, the construction breaks down into about $1.8 million
of hard construction. That is utilities, bricks, furniture, planting,
things like that. Then there's about $800,000. in what we term "soft
costs". Those are not necessarily overhead costs, they're integral to
the construction but typically a cost estimated format they're broken
out separately. They include the contractor's general conditions,
mobilization expenses, they include some money for the master
electrical system that is not part of the cosmetic improvements.
Surveying a lot of legal and design fees associated with the pro-
duction of the work, drawings of construction documents and other
costs associated with the organization of the project.
HARKNESS: OK, thank you. The next speaker will be John Wallace. John, would
you be good enough to state your name, address and occupation for the
record?
WALLACE: My name is John Wallace and my address is 61 Hamilton Avenue, Palo
Alto, California. I'm a real estate economist consultant.
HARKNESS: OK, I wond.=Ir if you can describe your education and experience as a
real estate economist.
WALLACE: Sure, as far as education I have an AA degree in liberal arts, a BA
degree in business from the San Francisco State University and a
• MBA from San Francisco State University with emphasis in finance
and real estate. Currently I'm employed with Larry Smith and Company
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
�e 16
I have worked for Larry Smith and Company for about 6 years of
the past 11 yea:r.•s as a real estate professional. I have also
worked and have been employed by Stanford Research Institute
and there I was a real estate economist. Let me tell you a
little bit about Larry Smith :and Company. Larry Smith and
Company is an international real estate consulting firm. They
spe:^ialize in retail as well as developing malls. They did some
of the original work on the mall in Sacramento California and
Kalamazoo and another 300. I've worked on some of those and
worked in Napa, California as well as Twin Falls, Idaho. Also,
and I should bring this up as well, another individual has also
worked on this project from Larry Smith and his name is Everett
Syske, and due to health reasons could rot be here this evening.
He has approximately 25 years in experience and has probably worked
on 50 pedestrian malls.
HARKNESS: Could you state very briefly the expertise that you and your firm
have that prompted the town to engage in these consultants in con-
nection with this project?
WALLACE: Yes, this is on the assessment district. We have rather recently
done a nearby one in another part of Colorado and I think that was
part of the reason we were called to do this type of work.
HARKNESS: In the course of your engagement with the Town, did you become
familiar with the documents that have been on file in the Town
offices and that have been described by Dick Ryan and Jeff Winston?
WALLACE: Yes I have.
HARKNESS: In addition to that , have your also personally inspected the
Lionshead area?
WALLACE: Yes I have. We've have several field trips to the site in Vail.
HARKNESS:` Are there other things that you did in preparation for your work
on this project by way of background.
WALLACE: As part of this study, we collected data from 80 other pedestrian
malls around the United States and we evaluated these and, I'm not
sure how much detail you want at this point, maybe I'll get into
it a little bit later.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 17
HANESS: OK, I take it that the principal purpose of your engagement was
to develop a formula which fairly apportions among the affected
properties within the Lionshead area a method for apportioning
the assessments and to develop a schedule of assessments to be
levied against the property. Can you tell us how you went about
that process?
WALLACE: Certainly. What we are attempting to do is to equate benefit with
assessment. What, therefore, we did was attempted to find the
benefits that each of the properties in VaillLionshead would
receive from the pedestrian mall and equate that to the properties.
HAR*ESS: OK, in pursuing that objective, did you then develop a formula by
which the total cost be assessed against the property owners benefited
was to be made?
WALLACE: Yes we did.
HARKNESS: Could you describe that for me and how it works.
WALLACE: OK, I'll describe it. As I told you earlier, I hope it isn't too
difficult to do a mathematical formula verbally, but, what it is,
for each property the formula is the Y factor which I'll explain
in a minute divided by the sum of the Y factor times the assessment,
the total assessment for the district which is this case is $1 million
that will be borne by the district on equal individual property
assessments. The Y factor is calculated by calculating first of
all the square footage of the unit times the distance factor and
times the use factor. In other words the type of use that the
property is put to. The square footage came from the assessor's
office. The distance factor was the factor that we arrived at
through a complicated formula. I won't get into that now but I'll
explain that later and the use factor also -came from the Assessor's
Office with ;=ome modifications that we ourselves made depending
upon th(- :relationship of the commercial property to the nearness of
the mall.
0
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 18
HANESS: OK, so, I have a little bit of difficulty in assimilating
mathematical formulas, but is it correct to state that the
formula proportions the cost considering the different factors?
Among those factors are use of the property, proximity to the
improvement, the square footage and
WALLACE: And then for commercial properties the mall frontage is also
important, not only distance.
HARKNESS: In the course of your work have you formed an opinion as to
whether the construction and installation of the improvements
which have been described here tonight according to the plan
• will confer special benefits as opposed to general benefits
on the properties to be assessed?
WALLACE: Yes.
HARKNESS: OK, and in making that determination, what factors did you
consider in determining whether special benefits would be
confer?
WALLACE:
Well, there's a whole range of factors that we have and I think
that the direction that the study should go. We've limited our-
selves to two basic benefits. The first one was the reservat.on
of the value of the properties. That would be caused by actually
renevating the mall area and so forth. The second area was the
affect on the market value of the property caused by the improve-
ments on all the property values of the properties within the
district. There are a whole variety of secondary ones such as
the health and safety factor and that also goes back and directly
affects even the value of the property as well as factors such as
increased sales for the retailers in the mall and so forth. You
know, that translates back into property value.
HARKNESS:
Based upon these considerations, what is your opinion about whether
these improvements would confer special benefits on the properties.
WALLACE:
That they would.
HAR&SS:
OK, have you also developed an opinion regarding whether the value
of those special benefits conferred will in the case of each
property the levy to be assessed against that property?
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Pw 19
WALLACE: Yes we have and we believe the;: will.
HARKNESS: Have you also formed an opinion as to whether ',he formula for
appor`J oning the assessments will fairly apportion the total cost
among the properties affected in porportion to the special benefits
conferred?
WALLACE: Yes we did, and we took a substantial amount of time and modified
it many many times. We feel very confident that this is the fairest
amount.
HARKNESS; Thank you. The process that has just been described to you is a
complicated one and in addition to the perplexity of the formula,
• another factor is that a great number of individual properties in
the Lionshead area who are affected, the undertaking by the Town
with respect to identifying all those property owners and ascertaining
from the records the square footage of each for the purpose of then
calculating the assessments is a considerable one as you can well
imagine. One of the purposes of a hearing of this sort and of the
notice of receipt of it is to ellicit public input concerning the
accuracy of that information and inevitably in a few cases, I under-
stand, there were some errors in the Assessor's records concerning.
the square footage of particular properties.. Rich, would you like
to address yourself to that consideration and describe what the Town's
approach to that matter would be?
WILTO: May I interrupt for just a moment? In case we are experiencing
difficulties do we have a backup recorder so that
KLINE: It is recording, it's just doing very odd things. I apologize, it is
recording though.
CAPLAN: Yes, there are approximately 734 properties in the Lionshead area and
notices as stated earlier were sent to those property owners with
proposed assessments. During the last two weeks we have been contacted
by the owners of 20 properties where there have been discrepancies
indicated in what the records initially showed in terms of square
10 footage for the properties versus what in actual fact exists. In
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 20
r\
U
some cases many of the property owners have added, completed
a loft in their unit or in some cases there was some error in
the County Assessor's re.ords or the like or some typographical
error in the printing of the notice. So out of those 20 projects
we have found that 2 of those and they are all residential, I
would say 2 of those projects the assessments, I'm sorry, 10 of
those 20 projects the square footage is too high and in fact
should be reduced and therefore prior to final Council action
we would recommend a reduction of, it varies but it's generally
in the vicinity of $100 - $200 per condominium unit. Those are
located, two are, located in the Lodge at Lionshead Phase II and
8 in the Enzion, but there would be a minor reduction in the
proposed assessments and we would recommend that to the Town
Council. In the other 10 cases, we found that forvarious
reasons the records indicate that there is more square footage
than on the record and in those cases properly speaking those
assessments should be increased by a nominal amount. Anywhere
from approximately $100 to $300 or $400. The total increase for
those ten properties would be $3500. Should the Town Cou,)cil
correct that error, we would bring back to the Town Council next
. Tuesday and based upon the other possible conflicts in publication
or Assessor's records that might be brought to our attention tonight,
a. revision in the proposed assessments and the Town Council would
amend those 20 assessments or a portion, perhaps some of those
assessments with the understanding that currently the assessments
total $999,099 and that any adjustments that would be made would
as legally published would still have to be below the $1 million
figure as we've published not to exceed $1 million, so there may
be, it may be our recommendation without doing all the final
calculations that there may be a slight less than fair increase in
those 10 units rather than totally republishing all 734 and re-
calculating all 734 properties. We anticipate that were we to
recalculate all 734 properties there would be a total change in
the properties that are not affected of less than $1 in the total
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 21
• assessment, so we don't feel that that warrants a whole repub-
lication and recalculation considering the time and cost of
recalculating and republishing those final assessessments.
Those assessments, I'm sorry, those properties which there would
be potentially some incrase in assessment that have been brought
to our attention include two units, one unit in the Mark, two
units in Vantage Point Phase II and three units in the Enzion
and the remainder of the units in the Westwind.
HARKNESS: So it is the intention of the Town Council and town administration
in any event to utilize the public input that has been given pre-
ceeding this hearing and at this hearing tonight for the purposes
of applying the formula fairly based upon the facts as they are
determined?
CAPLAN: That is correct.
HARKNESS: Final presentation tonight will be from Bill Pyka. Please state
your name, address and occupation for the record.
PYKA: My name is William Pyka, 4879 Meadow Drive, Town of Vail Finance
Director.
HARKNESS: OK, Bill, there are just two matters I want to touch on with you.
One is that the assessments that have much discussed tonight and
to be levied against the property owners on substantial completion
• of the project could be paid by the property owners pursuant to
either of two options. Could you describe the options each property
owner would have?
PYKA: Yes, after subsequent completion of the project the property owner
would have the option to pay the entire assessment in a lump sum
payment within thirty days after the assessment becomes finalized
and if that does not happen the property owner is assumed to have
elected the installment benefit payment whereby he would pay the
assessment over a period of between ten and fifteen years, probably
twelve years at an interest rate that cannot exceed 16 percent.
DARKNESS: OK, and how would that interest rate ultimately be determined?
PUBLIC HEARING
LIONSHEAD IMPROVEMENT PROJECT
NOVEMBER 30, 1952
Page 22
•PYKA: OK, the interest rate will be determined by the rate on the
special improvement district bonds that are issued, possibly
adjusted to recover any interest incurred during construction
period or the period during which, the period between substantial
completion and the assessment period.
HARKNESS: OK, we have also discussed tonight two methods of financing.
One has been described as special improvement district financing
through the issuance of special assessment bonds for the local
share and other other general obligation bonds financing to nay
the Town's share. Can you describe just briefly how each of
those kinds of bond issues are structured and your opinion as
to the feasibility of issuance of such bonds?
PYKA: Yes, the special improvement district bonds are essentially bonds
that are secured by properties listed on the notice for Lionshead.
The bonds that would be issued would most likely be term bonds
callable at any date, or callable on interest payment dates and
the assessments collected from the properties assessed would pay
those bonds off. The G.O. portion, the general obligation bonds,
would require an election of the entire Town of Vail, a successful
election, and would be paid from sales tax revenues generated
within the Town limits, specifically payable, the debt services
would be specifically payable from the open space and capital
improvements fund, of which half of the sales tax is pledged.
The term of that bond would probably be set for years and
would be paid off in that period of time.
HARKNESS: Thanks. Mr. Mayor, that concludes the formal part of the hearing.
WILTO: Thank you, Loring. I would like to call on Town Clerk Colleen
Kline. Colleen, for the record, would you state your position
with the Town of Vail and comment upon any protests that have
been filed?
KLINE: Colleen Kline, I am the Town Clerk of the Town of Vail. My
business address is 75 So. Frontage Road. The total number of
affecteed properties, that would be a $17,000,042, the estimated
PUBLIC HEARING
LIONSHEAD IMPROVEMENT PROJECT
NOVEMBER 30, 1982
Page 23
• total number of individual property owners includes ,
we received in writing 84 protests prior to the 5:00 p.m. deadline
on November 29th. A have a certified copy of that report if you'd
like copies of it. In addition, I'd just add that we received
three written protests after the deadline and one letter in favor
of going ahead with it.
WILTO: For the audience, I'd like to comment that any of you who have
not had an opportunity to file a protest will have an opportunity
to do so tonight and that will be added to what has been received.
Thank you, Colleen. We'll be opening the public hearing part of
the presentation this evening. Since there are so many people
here and we'd like to give every one of you an opportunity to
speak, we'd like to ask that you organize your thoughts and just
speak one time. I will ask you to step forward to the microphone,
identify yourself and place of business or interest in the improve-
ment district or whomever you may be representing and as soon as
we replace the microphone, we'll start that. I'd also like to
thank everyone for their patience through the formal part of this
hearing. The hearing is now open. Who would like to be first to
speak? Craig.
HOESFALFER: Mr name is Craig Hoesfalfer and I own Vail Glo Lodge and I have
just filed with Rich Caplan a record of objections and
to the proposed creation of the district. And I'd just like those
made a part of the record.
CAPLAN: By your submittal tonight, they are part of the record.
LIATIO. My name is Dean Liatio, I am a business owner in Lionshead and I
have some questions and some statements. First of all, it's
everyone's opinion here that Lionshead is falling apart, people
don't want to go there, and everybody's interested in taking care
of this thing. My question is, 500 of the people come skiing in
Lionshead right now, according to this gentlemen here, how many
more are going to come when this is completed?
PUBLIC HEARING
LTONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 24
WINSTON'': I doubt that many more skiers, but I think more people that
stay in Vail.
LIATIO: I'd like to know how this improvement compares to the Boulder
Mall or the Aspen Mall.
WINSTON: I don't know exactly. I don't know either of those costs.
LIATIO: I like to know how many square feet are being improved in Lionshead?
My main concern is, I mean there's no way in the world that this
thing is not going to pass. This gentlemen here had a very
reheased testimonial with witnesses, or whatever they wore and
the manner in which the voting was requested, things being mailed
out to Mexico on the 16th of November and they expect to be back
in Vail by 5:00 yesterday, everybody is Lionshead is supposedly
interested in this thing, but according to the Lionshead Business
Association when they had a meeting to this whole matter a week
ago, the first event of things is the attendance of the meeting
on November 23rd was very disappointing. Now, my main concern
on this whole matter is yes, I want the thing done but I would
hope that we can get a good value for our dollar. We're talking
$2.6 million here which $800,000 go for surveying, the design,
the legal fees and $1.8 million for hard construction costs.
I just hope the Council will take a hard look on where theses
dollars are being spent. The asphalt is really nice and moving
a few trees around is a good idea, but it might not be necessary.
I think that the way the economy is in Vail right now, who knows
what sales tax is going to be, you're looking at a lot of money
and I just hope that you're getting a good value for your money
and I think that $2.6 million of which $800,000 are:soft costs,
I think it's really ridiculous. I'd like to know what the
design cut is going to be out of the $800000. So-20% of the
$800,000 goes to the design. Then my next question would be,
Mr. Ryan, why can't they design the mall (Town staff) and save
. the Town $200,000?
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 25
SWINSTON: These are not called soft costs. This cost estimate is based on
labor and materials. The actual physical improvements to the mall
willcost $2.6 million.
LIATIO: Well, all I can say is before this thing is passed, we'd better
make sure what the costs are going to be, that's my main concern.
WILTO: Thank you. Any questions that are brought up that perhaps can't
be answered this evening, if the Council would like them answered
prior to our vote next week during the hearing, you can let those
wishes be known.
HARKNESS: Mr. Mayor, I'm not sure whether the tape picked up Jeff Winston's
• responses to the questions that were asked. Did you get it?
ESKWITH: It's doubtful. It's not a particularly sensitive ...
WILTO: Mary, are you taking
HARKNESS: Were all the members of the audience able to hear that too?
WILTO: Jeff, why don't you go ahead and repeat your responses.
WINSTON: The actual cost of the mall, that is the physical improvements to
the mall, will turn out to be about $2.26 million. Just because
of the way cost specifics in this state are broken down, the
$800,000 are not, in fact, soft costs or overhead costs,it's just
broken out so they're evident to anybody who wants to inspect
them. We could have taken the utilities, mobilization stock-
piling costs, and added those back into the unit costs up in
the cost estimate and nobody would have known the difference.
This is why it's important for people who do straight contracts
to know what exactly those numbers are. But typically, those
costs will be added to the cost of the materials and labor
and that would put the cost at about $2.26 million just a quick
estimate, we've not worked out the total square footage other
than through the demolition and some removal of the plant materials,
but my estimate is it's about 90 - 100,000 square feet in the mall,
which would put the cost at about $50 a square foot overall. Of
. the soft costs, the engineering and design fees are about $190,000
to $200,000 which is about 8.4% of the fee. Now the overall
construction costs which is significantly lower than what's
typically done with this kind of detail for construction
engineering you can typically expect anywhere from 10 - 12%.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
#age 26
ILTO: Who would like to speak next? Mr. Parker, did you have any
comments? Bob, would you like to say anything? Packy? Mr. Lazier.
LAZIER: I would like to make mention of the fact that
WILTO: Why don't you step to the microphone and identify yourself.
LAZIER: My name is Bob Lazier and I represent Lazier Properties in
Lionshead. I'd like to make mention of the fact that now appears
to be a pretty good time to make an investment on a capital basis
because labor costs in the area are probably a little lower than
has been for 5 or 6 years. I recently completed an addition to
the Tivoli and I thought a lot of my costs actually came below
• what I had anticipated they would be based on estimates I did. a
year ago. In that light it might be a very good time.
WILTO: Thank you. Del or Dinah, would you care to say anything?
OWENS: My name is Dinah Owens, 500 East Lionshead Circle, Vail. I've
been working on this project since it began 3 years ago and I'm
definitely for it and my landlord will assess me, I'm sure, and
that's OK, Bob.
BRYAN: My name is Nan Bryan, I'm a part time resident of Vail and live
in Denver full time. We've been here ten years and I'm not
negative against this project but I do feel also that being here
ten years and bringing up three daughters there are some of the
projects we have here that we haven't taken care of. When we
came here ten years ago we would walk down the bikepath very
easily by the A frame with no problem. Now, in the past five
years it's been a large problem and there's been several letters
to the Vail Trail and I sure to the Council as well as the Town
of Vail. And nothing seems to be done about the lighting system.
And so, consequently, I have. very mixed emotions that starting
this project, as the gentleman said earlier, it's a tremendous
amount of money and yet, somehow, I find that a fountain in the
middle of Lionshead Village is sort of a secondary project to
• the safety of my children and I had a 20 year young girl get up
today and say the first thing she heard on KVMT was that "this
would never happen in Vail". We had a crime, I guess, that was
not very pleasant. So before we start on alot of these amenities
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 27
I think we ought to take a look at what we can approve upon and
also one other thing I have to say is that being a condominium
owner not a property owner, that sometimes the condominium
owners are asked to be assessed for very viable things, but
also when things such as the hospital got in trouble, they came
to us immediately and said it was our duty to help them and
I think we all, especially in Lionshead, did that and until we
get our priorities squared away, I somehow think that maybe
fountains and beautifucation should be given very very serious
consideration. Thank you.
�TLTO: Thank you. Linda Hawkins? B.J.
BRITTON: My name is B.J. Britton. I have A Place on Earth in Lionshead.
Three years ago I sat with Diane and some of the other people
that started looking into the Lionshead and redoing it and what
we could do to it and what we can't do to it. It was a good
workshop and because of it we've created this in a sense. I
look at it now with the economy the way it is and, let's face
it, it's not good. We live in Vail, Colorado, and we have been
in years past, ammuned to all of this. But we're not ammuned to
it anymore. We've all seen it. I am for the project to be done
sometime. I don't think this is truly the time. I think this a
good time to look at it, but I don't think this is the time to
start getting into it. My concern is that if we do have a good
winter we probably also need a good summer and are we going to
have a good summer with this construction going on? I really
doubt it and I think a lot of people doing business have to
look at it that way. That's all I have to say.
CAPLAN: I'd like to make one comment for the public record. In terms of
the construction timetable, we on the Town staff discussed two or
three alternatives with the members of the Lionshead Association
of Businesses. Basically they involved doing all of the con-
struction over, a majority of the construction over a one-year
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 28
period or phasing it over two or three period, or phasing over a
five year period. Each of those alternatives had different cost
implications in terms of the total project and each had different
implications in terms of business activity in the Lionshead area.
The reason this didn't come up during the earlier testimony, the
reason for a majority of the construction being recommended during
the 1983 year was based on a recommendation from the Lionshead
Association of Businesses as to trying to get it all over in one
year and recognizing there would be more disruption during the
summer of '83 but that it would better to have a lot during one
summer than to have a continuing disruption over 2 or 3 years,
or summers. I think one potential option that the Town Council
could consider if they wanted to modify the plan in any way might
be to phase the plan over a 2 year period or 3 year period, however,
we'd have to recognize that that would have potentially some
implications on the construction cost.
BENEDICT: My name is Bud Benedict. I live a 680 West Lionshead Place here
in Vail. My wife and I have lived in Vail for 16 years. We've
lived in the Lionshead area for a little over 9 years. She has
her retail shop in the Lionshead Mall and I manage the Antlers
Condominiums in Lionshead. We also have a small little summer
• miniature golf course business in Lionshead. I happen to agree
with B.J. to a certain degree in that we are looking at harder
times and yes, the economy, the recession has hit Vail. where we
possibly didn't expect that to happen. I think we will all agree
that we are in better shape though than probably any other area
in the country, we're feeling it but we're not being hurt or
crippled by it. When I look at it and analyze it I try to say
to myself, what do we have to offer in Vail, what type of business
are we in, what are we doing. We have the finest product in the
United States right here in Vail.. We have the most beautiful
• community, most beautiful setting, the best ski mountain, the
most activities of any small destination resort area in the
United States. We are not in a position where we can sell our
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 29
• product on a cheaper basis. We cannot be the cheapest, we cannot
sell our prices the lowest. We have to have the best and the most
sought after product possibly available. We're seeing a deteriora-
tion in.the Lionshead area and we have for years. It was not
designed properly. It was not laid out properly. In order to
have a viable community you have to have viable businesses in
that community. This is what bring the people and it is the
people that ultimately help pay the bills. It's a better
experience for the people who own condominiums, it's a better
experience for the guests that come to that area and it's a
• better experience for the business people. I happen to think
that now is the best time to spend that money and make that
project go and make it fly and make Lionshead become a very
beautiful and great competitive area because the competition is
getting keener and we can't set back and say "let's wait and see
what happens". That's the way you get buried.
WILTO: Thank you. Next? I'd like to emphasize the importance of this
hearing. Although there won't be a vote taken this evening on
the ordinance, comments make either pro or against this evening
that will be considered by the Council when they are making their
vote, even the first part of the meeting seemed very contrived, it
• was because of legal statutory requirements and I'd really like
you to feel to make any comments you feel you would like to.
There being no further comments, we will close, yes, sir.
SILBER: My name is Ron Silber. I live at 4595 Bighorn Road and I have the
La Petite Cafe in Lionshead and also one in the Village. The
comments that I have to make is that the charm of the town, and
I think that having two cafes in two locations and I'll just
address that rather than being repetitious, would indicate that
Lionshead needs some charm and that's the reason that we want to
attract it and improve it. I think that it is the esthetics that
are very important to bring people here. I've been coming here
for 11 years and I would hate to see or pass up the opportunity
and watch further deterioration go on, and my comment would be
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 30
• mostly directed to the fact that we are a resort community and
it takes neonle that want to have an experience and I think we
need this desperately.
WILTO: Thank you.
SMITH: My name is Darrell Smith and I'm the owner of
and I wonder if any consideration has been given to cost overruns
and should they occur how will they affect the funding?
STAUF'ER: According to the ordinance on page 8 it says the Town is going
to pay for it and I don't agree with that. We're going to talk
about it I'm sure.
C PLAN: The Town is obligated by its own constraints not to exceed
$1 million for the proposed assessment district. The voter
authorization would be anticipated to be for $1.6 million. That
means in terms of financing opportunities the Town would have
$2.6 million. Should there be, there is a small contingency in
the proposed budget of, I think, 5 or 7 %, some reasonable amount
but relatively small. We feel that the construction costs are
reasonable based on 1982 experiences, but should there be any
cost overruns the burden would ly upon the Town of Vail and most
likely the Town Open Space and Capital Improvements Fund.
ANDERSON: May I say one thing, because I brought that up and Council hasn't
• done it, and before I vote in favor of this ordinance I find this
ordinance puts a constraint on the Town to build this according to
the plans which are a sketch plan and hardly construction drawings
so we are dealing with estimated costs and the cost overruns are
an obligation to the Town and before I vote in favor of this we're
going to have to have some resolution to this.
WILTO: Bob.
My name is Robert I owns Currents Jewelers in the
Lionshead Mall. Two factors that strike me, first of all that
improved traffic patterns for people to circulate on the mall,
• the increased tax revenues that would be brought in by the Town
over a 10 or 12 year period would probably tremendously offset
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 31
• more than what people anticipate in the down cycle up to now, and
secondly, if we were to get into a down cycle over next summer,
that would be a time to interrupt business rather than a high
period and wish that we would have done it already and I would
not want to interrupt two or three years from now it business
does pick up. That wouldn't be the summer I'd want to interrupt.
The summer I'd rather interrupt is when the revenues perhaps might
be down but in fact, I think that a long hard look would have to
be made at the increased sales revenues over a 10 year period
to offset a good year. I really think this is a positive move.
Thank you.
ORKER: My name is Bob Parker. I represent Vail Associates, Inc., in
Vail, Colorado. You're probably wondering about Vail Associates'
position. I think that Vail Associates would be in a most affected
position in terms of assessment of any business in the community.
Vail Associates is supportive of the project and depending on the
outcome of tonight's hearing, we'll probably go on record publicly
in favor of the project. We do have a concern regarding the size
of the projected budget for the project. Considering the economic
times that we're all experiencing, we ask whether it would be a
good idea to look at the project in phases in such a way that all
iof the fundamentals of the project, that is mall surface, basic
landscaping, lighting, and so on, would be accomplished in Phase I
and the more esthetic elements of the project like the fountain,
might be accomplished in another phase after the successful com-
pletion of the first and some opportunity to observe the results
of the first phase effort. Thank you.
WILTO: Any other comments? If there are no other comments, we'll move on
to a discussion of the ordinance but we'll continue the hearing
on this portion of the hearing, to next week at our regular meeting
on December 7 for the purpose of consideration of the ordinance
. only. So we'll open discussion of Ordinance #40, Series of 1982,
and ordinance creating the Lionshead Improvement District, approving
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 32
. the plan for and authorizing the construction, installation of
special and local improvements. As I mentioned, a lot of the
discussion on this ordinance this evening will be considered in
the vote of next Tuesday. Do each of you have a copy of the
ordinance in front of you? Are there any comments from the
staff regarding this ordinance?
CAPLAN: We've made a few minor changes that I don't think we need to
point out but there's nothing of substance but they are in the
revised ordinance which was on your desk before you this evening.
They were basically technical changes, nothing that changed the
basic substance of the ordinance.
�ILT'O: Are there any comments from Council?
WAHRLICH: Bill, I have a question regarding the installment way of paying.
I don't know if Bill Pyka is still here or not. We talk about the
interest shall be computed on the outstanding principal and interest
and should be paid with each installment. Are we planning to collect
interest on interest then?
HARKNESS: That may be a typo, what page are you on.
WAHRLICH: Page 9.
CAPLAN: I don't think);we are, to answer your question. It's a good idea.
WILTO: Bill Pyka, would you like to comment?
I&KA: I'm not sure I
HARKNESS: Perhaps I can comment on it. That shall read, "Interest shall be
computed on the outstanding principal and shall be paid with each
installment", so the answer to your question is no, we're not
computing interest on interest.
WAHRLICH: So we would strike out the words "with interest"?
CAPLAN: Yes.
ANDERSON: Bill, I would have, as I mentioned earlier, concerns on Section 2 (e)
which says that the plans for the improvements are hereby approved,
page 7. It would appear to me that were essentially working with
. unless there are some drawings that I'm not aware of that we're
working with design development drawings and I think that it should
be noted that these are design development drawings in the
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LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 33
ordinance and that the Town may have the right to make some
modifications between now and working drawings. And I think
if we were to do that my second concern which is in paragraph F
says that we will pay for any cost of overruns, would be somewhat
mitigated, but I think it's very important when we're working with
design development drawings, that Council has some flexibility
on what the final outcome will be.
CAPLAN: We did try to, the assessment district procedures require that
plans be prepared and we tried to basically do as much as we could
to satisfy the requirements of the law, but yet not lock the
• Town Council and merchants out in the field who see things
happening to a particular plan, so
ANDERSON: Well I think the language right here though puts us in extreme
financial liability in the position of the Town and is also somewhat
deceptive to those people voting in favor of the district because
we really don't see the specifics of what those plans are and I
think it should be noted that they are design development plans.
WILTO: Loring, is there any reason this can't be changed before first
reading?
HARKNESS: No there isn't. Typically in special assessment financing, as
. Rich pointed out, preliminary plans and specifications are drafted
for the purpose of deriving cost estimates and those cost estimates
are generally specified as maximums and once the governing body
concludes that it should go forward with the project, the next
step would be to authorize the preparation of drawings of sufficient
detail to go out to bid on the project and thereby fix the actual
costs which would then govern the size of the bond issue, bearing
in mind that the maximum cost has been locked in by the initial
procedure and the hearing before the public. The concern about
cost overrun is a very real one but there is some self control in
the way the process works, because the Town's maximum liability
• is the amount of the financing that is provided to pay the cost
of the improvements and in this case the Town has concluded that
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 34
• it will issue no more than $1 million in special assessment bonds
and then it will submit to the voters at a general obligation bond
election a question that would authorize $1.6 million of general
obligation bonds. So in order for the project to go forward, the
Town would have to obtain fixed price contracts within the ability
of the Town to issue bonds of these two types in order to fund the
project.
ANDERSON: Are you telling me that if we raise the $2.6 million and we did
not have sufficient funds to complete the last 10percent of the
paving, that that was the extent of the Town's liability? I would
think we would have tremendous financial liability for not
completing the plan.
;WINSTON; Typically, the
ANDERSON: The question is, would we have the liability?
WINSTON: Let me answer the question in this way. When contracts are let
out for special assessment projects, they are conditioned on the
availability of bond proceeds and the reason for that is the Town
is prohibited from incurring contractual liability in excess of
budgeted appropriated funds. The only exception to that is that
bond proceeds are not subject to budget and appropriation and so
the construction contracts are expressly conditioned upon the
• availability of bond money to pay them, and so it does limit the
Town's exposure in that regard.
JOHNSTON: I would assume that in the $2.6 million of committed contract
there would be a 10% plus or minus contingency factor.
WINSTON:, Typically the way this works, and we've done several other mall
projects of this nature, the contracts, at the conclusion of the
construction documents phase, we then go to bid. If the bids
exceed $2.6 million total cost of the project, the project is
redesigned to match the $2.6 million.
JOHNSTON: Including contingencies?
INSTON:. Including contingencies. We would typically, as you suggested,
that would be our typical request to have the 8-10% contingency
upon submittal and at that point, once the bids are received and
the contracts are awarded, then the contingency can be reduced
slightly,you always need some contingency as there are things
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LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 35
• that neither we nor the contractor could anticipate, but if those
prices exceed the $2.6 million then the project has to be redesigned
and changed in some way to bring the price within 2% .
ANDERSON: I think, Jack, that's my point, that we should state at this point
in time that we are dealing with design development drawings,
because let's take an extreme case if we have to eliminate the
fountain. We, I think, would be in a position of liability if
we did not state at the onset that we're dealing with design
development plans.
JOHNSTON: Chuck, would it make you more confortable if the term "preliminary"
• was added - preliminary plans for the improvements are hereby
approved?
WINSTON: Technically, these plans are called "schematic" designs. Preliminary
plans.
STAUFER: The things you stated right now about a cushion, is that an
automatic or should we list it in our ordinace, because I'm very
concerned about an open-ended contract, what this is basically here.
The Town will pay for any part of the project:cost which exceeds the
estimated cost of the construction. Now all of us know whether you
have a contract or not, usually the construction overruns at least
10%. Now is the Town would get stuck with $260,000, it would be a
• hell of a burden on the Town to pay the $260,000, so are you going
out and bid on the, let them bid 10% less rather than $2.6 million,
you let them bid the $3.2 - $3.5 or something like this?
WINSTON: Two things have happened. We built in about a 5% contingency, we've
also taken a fairly conservative look at the costs that are here,
we think are somewhat conservative. As we complete the construction
documents phase, we will then do.a much more detailed cost estimate
and have in that cost estimate the contingency fund. We did not do
that with these plans.
STAUFER: Well, I don't think that any of us would like to see the project
• started and then have a -thing happen like in the Casino, when half
of the building was finished and down there, I don't know if it's
going to be the east mall or the west mall, which is going to get
the short end of the stick.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
#age 36
INSTON: Well, what I'm telling you is that you'll know those numbers before
the bid is awarded.
STAUFER: What I'm talking about is the ordinance itself, because if we vote
on that ordinance we're going to be committed to it.
WINSTON: Yes, but you also have the responsibility and the opporunity to
supervise the preparation of the construction documents to insure
that they do not exceed the $2.6 million.
JOHNSTON: But also, Hermann, we're not committed until the G.O. Bond election
is passed.
ANDERSON: Well, I'd just like to ask the Council if we could modify this
. to state that we are based on schematic design which may be modified
to keep the project within budget.
HARKNESS: I think that's an appropriate addition and also perhaps in addition
to the end of paragraph F, which would indicate that liability of
the Town is subject to the availability of the receipt of bond
proceeds.
TODD: I found on page 5 the sentence that says, "said plans are satis-
factory in all respects", part of it extends to the concerns raised
by Chuck that we are working with very preliminary schematic drawings
and I would like to have that sentence dropped but under no cir-
cumstances would I want to have any wording in there that would
• be construed to relieve the design firm of their customary
responsibility for errors and omissions. And the second thing and
I may just be misunderstanding the wording, but on page 8 where
it talks about, after the consideration of the circumstances, etc.,
it comes down here and makes a statement that including but without
limitation increased market value, in an amount which shall equal or
exceed the maximum amount of of particular assessment to be assessed,
each such property, while I concur that our consultant has made that,
has come up with the opinion, I don't feel the Town should be in
a position of insuring appreciation of property values and I think
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we should be very clear about that.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT PROJECT
NOVEMBER 30, 1982
Page 37
*RKNESS: That's a very important part of the ordinance and I'd like to
comment on that. The Town Council is charged with the responsi-
bility of making a determination concerning this special benefit
to be conferred. In assistance of that duty, an expert witness
has to be called to testify as to. facts from which the Council
might conclude that. If the Council cannot conclude that the
special benefits at least exceeded the assessments in every case,
then the underpinnings of the special assessment financing would
be undermined. So that's a very important legal concern in the
consumation of a special assessment district financing. The Town
is not warranting that property values will increase. It is simply
making a finding based on evidence that special benefits have been
conferred, among which may be an increase in market value and among
which may also be any number of the conditions that are specified
in the Town's procedural ordinance about whichMr. Wallace testified
previously.
TODD: It is not a warrant then of property value increase?
HARKNESS: That is correct.
WALLACE: That's not an increase only in property values either. It could
also limit a decline in property values.
WILTO: Loring, how about Ron's first comment about, referring to the
• sentence on page 5, I believe it was.
HARKNESS: I think that what we need to do is to confine the finding there
to approval of preliminary plans or schematic drawings as the
language has been subjected. What we are attempting to do is to
give preliminary approval to the preliminary plans at this stage
and conclude they they conform to,the requirements of the Town's
procedural ordinance. Perhaps satisfactory in all respects in not
very artful.
WILTO: Any other comments or questions from Council? Are there any comments
from the audience?
OERSON: I have some questions on our timing. In the presentation given
earlier on the financing, it was suggested that if we were to carry
forward with this project a bond issue would be held on the late
first quarter of 1983. There are certain economists in the national
market that would; -tell us that that's probably the worst possible
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 38
• time in the next 12 months we could be in the market. We've
already had a little bad timing this year once. What would happen
if we elected to delay that bond issue? What is being set in
process at this point in time?
HARKNESS: There really are 2 timing considerations with respect to general
obligation bonds. One is the timing of the election and in terms
of attempting to gain electorate approval, that is really a
political question as to when the electorate is most receptive
to approval of that question. Once the bonds are authorized
at that election the timing can be for issuance of the bonds
• can be delayed or advanced depending upon what advice the Town
may have from its investment bankers as to market conditions then
present. So, once the authorization is obtained there is some
flexibility to either wait to speed up depending upon what the
market it.
ANDERSON: One more question on financing. It is my understanding that
presuming that we proceed again, the funds for the special
development district as they come from the development district,
are not collected until the project's complete.
HARKNESS: The bonds are issued based upon the results of the construction
bids and then the bond monies are used to pay for that portion of
• the project. When the project is substantially complete then the
Town will hold hearings on the assessment, those costs, and then
as Bill Pyka indicated in his testimony, the property owners may
elect either to pay in lump sum or to finance that over the same
term as the bonds.
ANDERSON: I have one more question. Is Dick Ryan here still?
Dick, in this construction, perhaps you can answer the question.
Have we analyzed all of the various, first of all, if we started
April 1st, how long do you think it would take to complete the
project?
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PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 39
QYAN: In talking with Jeff and Steve Patterson, the contractors will
need basically the entire season. From April to November to get
the mall operational for the winter ski season. And then in '84
it would be final'.landscaping, putting the sprinkler system in,
benches, some of the finishing work.
ANDERSON: Would there be access, would shops be open during this period
of time?
RYAN: There would be the option of having shops open, yes.
ANDERSON: How hazardous would it be to get in and out of the shops?
RYAN: I can tell you of one experience. I was working for the City
• of Boulder during the construction of their mall. I think there
was a very short period of time when some shops were not open.
They actually had to rip out from the surface right next to the
building. What they did was put in a series of boardwalks and
there was the ability to get through the mall and I don't know
if that will happen here in Vail, but the sales tax revenues
in Boulder increased during the construction period.
ANDERSON: Have we done any analysis to date on schedules of construction,
to have the least possible impact on residents and merchants?
RYAN: We have not done that.
STAUFER: I have one more question. During the construction of the mall,
• how many private properties are going to participate doing large
enlargements to their store fronts to increase their commercial
space during the same time.
RYAN: OK, at this time we have not received any requests. There's been
a couple of properties that have been working on it for a few years
but have been having trouble getting a majority of owners approval
to use their land.
STAUFER: So you don't see any right now or during that time?
RYAN: No, we have not received any requests.
CAPLAN: We have spoken with at least one major property owner that would
• anticipate doing it at that time if this proceeds.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 40
OHNSTON: According to the scenerio that Dick just gave us, and the timing
on the assessment, would that mean that it would befall before the
property owners would assessed?
CAPLAN: That's correct. It would most likely be in fall of '83, which would
mean that they would have that pay off time at that period, if they
chose not to pay it off they would see it on their property tax
statement beginning in 1984.
JOHNSTON: OK, do all of you understand that? You would be paying in all
probability in 1984. The first dollars would be paid by the general
obligation bonds. When the project was some percentage along, then
hearings would be heard and at a subsequent time you would be
assessed. So you would not be paying dollars in all probability
until the calendar year 1983, unless you elected upon assessment in
say October of 1983, to pay all of yours at that time. If your
elected to pay it out, finance it, then you would begin payments
in January of 1984. So you're not really looking at the questionable
economy of 1983 as far as the payout is concerned.
WILTO: George, you had a questions?
GEORGE: How would the decision be made as to which properties would be
allowed to expand and to what extent?
CAPLAN: In terms of which properties could be expanded, the Lionshead UYb-an
Design Guide Plan designates which properties currently may be
allowed to expand or modify. And some of those have chosen
voluntarily to do so. There are always the opportunities which
come before the Council from time to timefor other variances that
are not perhaps part of the plan, plus the Town Council does review
the plan on an annual basis, so there are those changes that could
occur.
GEORGE: It seems to me the time frame is such that those businesses or land
owners that plan to expand are going to have to get with the program
pretty quickly in order to receive the Town's or the designer's
blessing for their proposal in order not to interfere with the
proposed process.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 41
10APLAN: Yes, that's correct.
WILTO: Somebody else have their hand up? Bob?
LAZIER: Well, I would indicate that I would do some addition to the
building in Lionshead. I consider that a good time to do any of
the expanding and coordinate it at the beginning of the project.
WILTO: Are there any other comments or questions about the ordinance?
If you haven't had an opportunity to review it, there should be
copies at the rear of the table, if there aren't, you can certainly
pick up a copy in the morning here at the Town of Vail.
CAPLAN: I would remind the Council that formally the procedure is if you
• receive 50% protests or greater of the affected property owners,
then you are obligated to kill the proposal. If you receive less
than 50% protests, which you have received, then the decision lies
in your hands whether or not to proceed or not to proceed, and that
would be considered formally next Tuesday night at a regular
meeting.
WILTO: Are there any other questions or comments from the Council on the
discussion? Loring, anything else that we should cover at this
meeting?
HARKNESS: No sir.
WILTO: Before we adjourn, Mr. Caplan has a couple of items of information.
PLAN: Yes, I'd like to request a member or members of the Town Council to
attend the Design Review Board meeting tomorrow at 2:00 p.m. I
understand there may be some affected property owners in conjunction
with our radio station that will be discussing the matter and I think
that since the Council has, let me update you first of all that
after your work session last Tuesday, Mr. Eberle contacted members
of the Design Review Boardand 4 of them gave their approval to
proceed on a interim basis with the Ford Park telephone post. Since
that time the residents of the Book Creek area have expressed, some
of the residents have expressed a concern about the matter and the
matter formally will be in front of the DRB tomorrow for further
consideration basically based on your direction of last Tuesday.
PUBLIC HEARING
LIONSHEAD IMPROVEMENT DISTRICT
NOVEMBER 30, 1982
Page 42.
The other two items I have can wait.
WILTO: May we have a motion to continue the meeting until our next
regular meeting?
JOHNSTON: So move.
STAUFER: Second.
Meeting adjourned.
Respectfully submitted,
r
ATTEST:
Pamela A. Brandmeyer, T#n Clerk
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