HomeMy WebLinkAbout1996-11-19 Town Council MinutesMINUTES
VAIL TOWN COUNCIL MEETING
November 19, 1996
7,30 P.M.
A rggular meeting of the Vail Town Council was held on Tuesday, November 19, 1996, in the Council Chambers of the
�unicipal Building. The meeting was called to order at approximately 7:30 P.M.
MEMBERS PRESENT: Robert W. Armour, Mayor
Sybill Navas, Mayor Pro -tern
Kevin Foley
Rob Ford
Paul Johnston
Ludwig Kurz
MEMBERS ABSENT: Michael Jewett
TOWN OFFICIALS PRESENT: Bob McLaurin, Town Manager
Tom Moorhead, Town Attorney
Holly McCutcheon, Town Cierk
The first item on the agenda was Citizen Participation. Vail resident, Scotty McGowan expressed his concerns regarding
uncontrolled, vicious dogs in town.
Next, Sheika Gramshammer of the Gasthof Gramshammer Lodge, addressed the Council about noise problems in the
Village core, and was especially concerned with the 7:00 a.m. trash removal. She said trash removal that early in the
mogg was especially annoying to guests and suggested a later pick up of 8:00 a.m.
Jo Stauffer of the Vail Village Inn said he supported Sheika's concerns, and stated that because of the mixed use
buildings in the Village, it was important to be "liveable". On another matter, Mr. Staufer asked Council members to
reconsider their decisions pertaining to the Red Sandstone housing project, stating it would be a mistake to put public
lands to private ownership. He also indicated he did not appreciate the architecture of the project.
Peter Franke, an employee of Gasthof Gramshammer then addressed Council regarding the early trash removal issue.
In addition to an 8:00 a.m. pick up, Franke suggested back up beepers and diesel engines on the trucks be cut off to
help alleviate noise, and asked that Checkpoint Charlie be staffed at night.
Roy Parsons of BFI explained the trash removal process in the Village, and said he understood the concerns expressed
by Gramshammer. However, he explained that in addition to coming up with a cost effective collection system, safety
was his company's main issue. Larry Roman, facilities manager for BFI was also on hand to explain operations. .
Jim Lamont of the East Village Homeowners Association said he supported all parties who spoke on the trash removal
issue. He said he was confident that short and long term solutions to the loading and delivery problems could be
reached, and that everyone in the community should participate.
Item number two on the agenda was the consent agenda which consisted of the following items:
A. 4oOrdinance No. 17, Series of 1996, second reading of an ordinance amending Special District No. 21, the Vail
Gateway Building, and amending the development plan in accordance with Chapter 18.40 of the Town of Vail
Municipal Code and setting forth details in regard thereto. Applicant: Vail Apartment, Inc., represented by Steve
Riden.
B. Ordinance No. 21, Series of 1996, second reading of an ordinance to designate 14 properties located in the
Town of Vail as open space as provided in Article 13,' Section 13.11 of the Charter of the Town of Vail, Colorado.
Mayor Armour read the Consent Agenda in full. A motion was made by Sybill Navas to approve the Consent Agenda,
and Paul Johnston seconded the motion. A vote was taken and passed unanimously, 6-0.
Third on the agenda was Ordinance No. 23, Series of 1996, first reading of the 1997 budget and financial plan, and
consideration of a 1998 budget and financial plan. Mayor Armour read the title in full. Town of Vail Finance Director,
Steve Thompson presented the item, stating that the annual appropriation Ordinance No. 23, Series of 1996 will adopt
the 1997 budget and approve the 1998 budget, and that staff recommendation was for approval of the Ordinance on
first reading. Mayor Armour asked that staff look at the opportunity to add an additional firefighter position prior to
second reading. Paul inquired about the number of community safety officers employed by the town. Town Manager,
Bob McLaurin stated that currently there were four, but that additional officers would likely be needed once a new
loading and delivery plan was adopted.
Rob .ord moved to approve Ordinance No. 23, Series of 1996 on first reading with a second from Sybill. Sybill then
stre1W the importance of an additional firefighter. Bob McLaurin said he would have information available at the
November 26 work session as to the cost of the position. A vote was then taken and passed unanimously, 6-0.
Agenda item number four was Ordinance No. 24, Series of 1996, first reading of an ordinance providing for the
establishment of Special Development District No. 33, Red Sandstone; adopting a development plan for Special
Development District No. 33 in accordance with Chapter 18.40 of the Vail Municipal Code; and setting forth details in
Vail Town Council Evening Meeting Minutes November 19, 1996
J
regard thereto; and Ordinance No. 20, Series of 1996, first reading of an ordinance rezoning three tracts from General
Use Section 18.36 to Medium Density Multi -Family Residential, Section 18.18 generally located at 945 Red Sandstone
Road. Senior Housing Planner, Andy Knudtsen presented the two ordinances and referred to an October 28, 1996
memorandum to the PEC. He explained that the zoning change was needed to move forward with a proposal initiated
by the Eagle River Water and Sanitation District in partnership with the Town of Vail and the U.S. Forest Service for a
17-unit affordable housing development. He said the water district was the owner of three-quarters of the property, while
t orest Service owned one -quarter of the land, and that the town and Forest Service were negotiating a transfer to
th own as part of the Land Ownership Adjustment Agreement. Andy further stated that the land use plan was
consistent with the proposed use, and that the project was well within the range and consistent with what currently exists
in the area. He mentioned that parking and loading areas were well within the requirements. The staff recommendation
was for approval of Ordinance No. 20, Series of 1996 and Ordinance No. 24, Series of 1996.
Tom Braun of Braun & Associates, Pat Dauphanias of the Eagle River Water and Sanitation District, and Jim Morter
of Morter Architects presented a visual design of the project, answered questions, and provided an overview of the
proposed site plan.
Jim Lamont of the East Village Homeowner's Association questioned whether the units should all be sold, and
suggested keeping a portion of the units in the affordable housing pool. He requested the Water District's use of their
units be similar be similar to that of the town's, as far as the number available for critical and non -critical employees,
the rest being drawn for in a lottery. He said housing was needed for all employees, not just those employed by the
government. Additionally, Lamont said he would like to see additional sidewalks put in.
Rob Ford complemented the Water District for its efforts in presenting an affordable housing project for the community.
He said an excellent job was done meeting the criteria and proposing the project, and suggested Council approve the
project and move forward. He said he was confident the smaller details could then be worked out.
Ro ord moved to approve Ordinance No. 20, Series of 1996 on first reading with changes as recommended
byWwn Attorney, Tom Moorhead. Sybill seconded the motion, and a vote was taken and passed
unanimously, 6-0.
Ordinance No. 24, Series of 1996 was then discussed. Rob Ford stated the project met with all the design
guidelines as required. Sybill moved to approve Ordinance No. 24, with addition of language pertaining to
deed restriction and streamwalk setbacks for the project. Rob Ford seconded the motion.
Mayor Armour then complimented the project, pointing out that the setbacks had been met, and that parking
and landscaping was greater than what was required for the project. Paul Johnston stated he couldn't vote in .
favor of the project because of concerns about the architectural design, in particular the flat roofs. A vote was then
taken and passed, 5-1, Paul voting in opposition.
Agenda item number five was An appeal of a variance denial made by the Planning and Environmental
Commission on September 23, 1996. The appellants were denied a site coverage variance to allow an additional one -
car garage to be constructed at 742-B Sandy Lane/Unit B, Lot 3, Vail/Potato Patch, Second Filing. Appellants: Charles
and Geri Campisi, represented by Kerry Wallace. Town Planner Dominic Mauriello informed the Council that the
appellants requested the matter be continued to December 17, 1996.
Rob moved to table the item until the December 17 evening meeting and Sybill seconded the motion. A vote
w*en taken and passed unanimously, 6-0.
Sixth on the agenda was a report from the Town Manager. Bob McLaurin stated he had nothing to add.
Kevin Foley announced the Eagle County Regional Transportation Authority had authorized $250,000 in
transportation sales tax funds to help complete the Dowd Junction recreational path. He said approval was
based on a recommendation by the Trails Committee, which reviews requests for matching funds.
There being no further business a motion was made by Rob for adjournment. Kevin seconded the motion and
the meeting was adjourned at approximately 9:55 p.m.
Respectfully submitted,
Robert W. Armour, Mayor
ATTEST:
lkuplbbv_�
Holly McCutcheon, Town Clerk
Minutes taken by Holly McCutcheon
(*Names of certain individuals who gave public input may be inaccurate.)
Vail Tawn Council Evening Meeting Minutes November 19, 1996
MEDIA ADVISORY
November 20, 1996
Contact: Suzanne Silverthorn, 479-2115
Community Information Office
VAIL TOWN COUNCIL HIGHLIGHTS FOR NOVEMBER 19
Work Session Briefs
Council members present: Armour, Foley, Ford, Johnston, Kurz, Navas*
*Attended site visit only
--Site Visit/Campisi PEC Appeal
The Council visited a Potato Patch site at 742-B Sandy Lane/Unit B in preparation for
an appeal to be heard. at the evening meeting. However, the matter was continued to
Dec. 17 at the request of the appellants. Charles and Geri Campisi are appealing a
variance denial made by the Planning and Environmental Commission to allow an
additional one -car garage. For more information, contact Dominic Mauriello in the
Community Development Department at 479-2148.
--Site Visit/Red Sandstone
In preparation for the evening meeting, the Council visited the site proposed for 17
affordable housing units by the Eagle River Water and Sanitation District in partnership
with the Town of Vail. Please see evening meeting briefs for details.
--Information Update
Town Manager Bob McLaurin invited Council members to attend an open house on
Dec. 6 to mark the town's 30th anniversary of incorporation and to celebrate the
reopening of the Transportation Center. A ribbon cutting will take place at 1 p.m. at the
Transportation Center. Mayor Bob Armour will assist. Also, McLaurin reminded
Council members of the Turn It Up party scheduled for later in the evening. Other
announcements from McLaurin included: an update on planning for the 99 World
Alpine Ski Championships; an update on the Transportation Center remodel, which will
be completed on Dec. 2; and an update on loading and delivery discussions, which will
be rescheduled for Council consideration in the coming weeks.
--Council Reports
•Kevin Foley, who represents the Council on Arts In Public Places, said the board is
moving forward with its call for artists to solicit plans for Seibert Circle. He said the
board is aware of the council's concern for emergency vehicle access, a point
reinforced earlier this year with the Wall Street Building fire. Also, Foley provided an
update on the Eagle County Regional Transportation Authority and the Trails
Committee. A recommendation by the Committee to authorize $250,000 in
transportation sales tax money to complete the Dowd Junction recreational path has
been approved by the authority, Foley said. The Colorado Department of
Transportation plans to widen Highway 6 next year with 8 ft. shoulders on each side of
the road to improve the linkage between Vail and Eagle -Vail, he said.
Rob Ford and Bob Armour reported on the latest meeting of the TOV-VA Community
Task Force. The meeting included an update on mountain improvements, the
• upcoming holiday management plan and Vail Tomorrow.
--Other
Kevin Foley expressed concern about the town's handling of overflow cars along the
Frontage Road this past weekend. Foley said he received complaints about the matter
and was concerned that some of the cars were ticketed. Town Manager Bob McLaurin
agreed and said the town wasn't as prepared as it could have been and was working
on improvements, including better signage. Joe Macy, representing Vail Associates,
encouraged the town to prepare for additional crowds this coming weekend and during
Thanksgiving weekend. Bob Armour echoed Foley's concerns, saying last weekend's
experience was not the kind of image Vail needs.
Town Attorney Tom Moorhead indicated the amplified sound issue would be coming
back to the Town Council for review and possible modification in February. In the
meantime, he said the town clerk will continue to process new applications for permits
until the matter is resolved. The issue has been controversial in the past due to
nuisance complaints against some of the permit -holders by surrounding neighbors and
businesses. For more information, contact Moorhead at 479-2107.
Evening Session Briefs
Council members present: Armour, Foley, Ford, Johnston, Kurz, Navas
--Citizen Participation
Scotty McGowan appeared before the Council and expressed concerns about vicious
dogs in town. He suggested the need to educate newcomers about Vail's leash laws in
the commercial core areas.
Next, Sheika Gramshammer of the Gasthof Gramshammer Lodge, addressed the
Council about noise problems in the Village core. In particular, Gramshammer said the
7 a.m. start for trash removal in the core is too noisy for sleeping guests. As a result,
she said, it is becoming more difficult to run a hotel in the heart of Vail. Gramshammer
said she would rather see trash removal begin at 8 a.m., noting that pedestrians and
trash trucks should be able to co -exist.
Also speaking was Joe Staufer of the Vail Village Inn, who supported Gramshammer's
concerns. Because zoning in Vail's commercial core advocates a mixed -use, Staufer
said it has to be "liveable". On another matter, Staufer asked the Council to consider
his views during discussion of the Red Sandstone affordable housing project, which
was heard later in the evening. Referring to the town's portion of the proposed 17-unit
development, Staufer said it would be a mistake to put public land in private ownership.
Instead, Staufer advocated keeping the town's units in a rental pool rather than selling
them. He said the action would create a bad precedent for the future. In addition,
Staufer said he and others did not appreciate the architecture of the project.
Also appearing before the Council was Peter Franke, an employee of the Gasthof
Gramshammer, who also complained about the trash delivery issue. Franke suggested
eliminating the back-up beepers on the trucks and shutting off the diesel engines on
delivery trucks to help reduce noise. He also agreed that pedestrians and trash trucks
can co -exist with an 8 a.m. trash removal schedule. In addition, Franke asked that
Checkpoint Charlie be staffed at night to control vehicular movement in and out of the
Village.
Next to speak was Roy Parsons of BFI. Parsons said he was sympathetic to the
concerns expressed by Gramshammer. However, he said safety is the company's
number -one issue. Parsons said the solution isn't an 8 a.m. adjustment, but rather
placement of a compactor to limit the number of times a trash truck is needed to travel
in the core. He said BFI was willing to work with the town and its customers to find a
solution.
Jim Lamont of the East Village Homeowners Association said he agreed with all
concerns expressed during citizen participation. He said he remained confident that
short and long-term solutions to the loading and delivery problems could be reached.
He also described it as a community -wide problem, not a neighborhood problem,
because of the economic impacts produced by businesses in the core.
--Consent Agenda
•The Council voted 6-0 to approve two ordinances on the consent agenda: one to
amend the Vail Gateway Building Special Development District and another to
designate 14 properties located in the Town of Vail in a special open space
classification authorized by a charter amendment approved by voters last November.
--1997-98 Town of Vail Budget
The Council voted 6-0 on first reading to adopt the 1997 budget and to approve the
1998 budget. During discussion, Bob Armour and Sybill Navas said they wanted to
look at the possibility of adding a firefighter position before the ordinance comes up for
second reading. With no increases in staff since 1982, Fire Chief Dick Duran has said
the safety of his firefighters is being compromised due to multiple alarms and reduced
availability of off -duty personnel. Town Manager Bob McLaurin said he would generate
a spreadsheet on the cost of the position for review at the Nov. 26 work session.
Although the budget calls for elimination of 7.5 full-time equivalent positions (through
attrition and/or reassignment), McLaurin said additional community safety officers will
likely be needed once a new loading and delivery plan is adopted. For more
information, contact McLaurin at 479-2105.
--Red Sandstone/Rezoning, Special Development District
The Council voted 6-0 on first reading to approve an ordinance to rezone the property
at 845 Red Sandstone Road from general use district to medium density multi -family.
The zoning change is needed to move forward with a proposal initiated by the Eagle
River Water and Sanitation District in partnership with the Town of Vail and U.S. Forest
Service for a 17-unit affordable housing development. The water district owns three-
quarters of the property, while the Forest Service currently owns one -quarter of the
land. The town and Forest Service are currently in negotiations to transfer its portion to
the town as part of the Land Ownership Adjustment Agreement (LOAA). The transfer is
expected to be completed in February. Also last night, the Council voted 5-1 (Johnston
against) to approve a Special Development District (SDD) for the project. The SDD
clarifies the development intentions for the property, requiring the specific design to be
provided simultaneously with the request for a change in zoning. During an overview,
Andy Knudtsen, the town's senior housing policy planner, noted the density for the
proposed development is well within the range of surrounding densities, and that
neighbors were generally supportive of the project. He also referred to the Council's
decision on Nov. 12 that all five of the town -controlled units would be sold to TOV
employees (three for critical life-saving and two for non -critical employees). During
discussion, Jim Lamont of the East Village Homeowners Association asked the Council
to use the SDD process to enable equal access for the housing units by the general
public. He suggested the water district receive one-third of the units, the Town of Vail
one-third, and the remaining third be available to the general public through a lottery
similar to Vail Commons. Lamont said the split would address public policy concerns
that stem from what he called the conversion of open space and the use of public lands
for housing. In response, Pat Dauphinais, board member of the water district, said his
board would be interested in pursuing a public lottery for any excess units once the
board determines the number of units it will need. At this time, it is anticipated that all
17 of the units will be deed restricted with standards similar to Vail Commons deed
restrictions. There is a provision that would allow for 25 percent of the units to be sold
as "free market" units to reduce the cost of the affordable housing, although the
•applicants do not anticipate needing the subsidy. Additional provisions of the deed
restriction which exceed the Vail Commons standards will allow the water district and
the town to retain control of the units on a resale basis via reciprocal first and second
rights of refusal. Paul Johnston voted against the SDD ordinance due to concerns
about the project's architectural design, specifically the flat roofs. For additional
details, contact Andy Knudtsen in the Community Development Department at 479-
2440.
--Campisi Appeal of Planning and Environment Commission Decision
At the request of the appellants, the Council voted 6-0 to table the matter to the Dec. 17
evening meeting.
--Other
Kevin Foley announced the Eagle County Regional Transportation Authority has voted
to authorize $250,000 in transportation sales tax funds to help complete the Dowd
Junction recreational path. Foley said approval was based on a recommended by the
Trails Committee, which reviews requests for matching funds.
0 UPCOMING DISCUSSION TOPICS
November 26 Work Session
PEC/DRB Review
GRFA Discussion
December 3 Work Session
Site Visit and Discussion of Ordinance 18, Savoy Villas
Discussion of Supplemental Appropriations
F 0
u
Motion to Modify Debris Flows on Bald Mountain Road
Discussion of Ordinance Amending Section 18.22.030
Vail Commons Open House
December 3 Evening Meeting
First Reading Ordinance 18, Savoy Villas SDD
First Reading Ordinance 22, Amendment to Section 18.22.030
First Reading Ordinance, Supplemental Appropriations
Second Reading Ordinance 23, Budget
Second Reading Ordinance 20 &.24, Red Sandstone SDD and Rezoning
Resolution 21, Norwest
Presention of Investment Report
December 10 Work Session
PEC/DRB Review
Community Collaboration Fallow -up to Support TOV Critical Goals
Council Executive Session
TOWN OF VAIL MEMORANDUM
TO. Robert MCLaurin
Council Members
FROM: Judy Popeck
DATE: November 21, 1996
RE: Investment Report
0
Enclosed is the investment report with balances as of October 31,
1996.
A $500,000.00 FNMA was purchased on October 10, 1996 with a yield
of 5.880% maturing on June 10, 1998. A $850,000.00 FHLMC was
purchased on October 31, 1996 with a yield of 5.340% maturing on
November 20, 1996. A $1,150,000.00 FNMA was purchased on October
31, 1996 with a yield of 5.340% maturing on November 26, 1996. A
$1,500,000 FFC was purchased on October 31, 1996 with a yield of
5.330% maturing on December 19, 1996.
The estimated average yield for the debt service fund was 6.87% and
5.62% for the pooled cash fund. Currently the yield curve for 3
months, 6 months, and 1 year are 5.01%, 5.08%, and 5.16%
respectively.
Please call me if you have any questions.
to
Town of Vail, Colorado
Investment Report
Summary of Accounts and Investments
For the Month Ending October 31, 1996
0
Money Market Accounts (see page 1)
Commercial Banks
Local Government Investment Pools
Money Market Funds
Total
Certificates of Deposit (see page 2)
Eagle County Institutions
tther Colorado Institutions
ational Institutions
Total
Percentage of Portfolio in Savings & Loans
U.S. Government Securities (see page 3)
Treasury Notes & Bills
GNMA's
U.S. Savings Bonds
Federal Agency Discount Notes & Bonds
Total
Total Portfolio
•
Maturing Within 12 Months
Maturing Within 24 Months
Maturing After 24 Months
11/21/96
invsmjlp
Balances Percentage
10/31 /96 of Total
$2,268,790
13.79%
$774,527
4.71%
$98,556
0,60%
------ -------- ----------------------
$3,141,873
19.10%
Commercial Savings
Banks & Loans
0.00%
$198,000 $198,000 1.20%
0.00%
----------------------------------- ------------------------ --------------------------
$198,000 $198,000 1.20%
Page 2
0.00%
$2,466,595 15.00%
$57,649
0.35%
$30,000
0.18%
$10,552,880
64A6%
$13,107,124
79.69%
$16,446,997 100.00%
$13,802,334
83.92%
$1,583,729
9.63%
$1,060,934
6.44%
-------------------------------------
$16,446,997
100.00%
Money Market Accounts
as of October 31, 1996
--For the Month of October --
Institution
Balances
le Type of Accounts High Low
Average
t0/31/96
COMMERCIAL BANK ACCOUNTS
First Bank of Vail - Operating
Interest 4.920% 4.830%
4.850%
-- $3,108,243 $2,193,452�5$2,619,609
Balance ---------
$2,266,859
Colorado National Bank Super Now Account
Interest
3.140%
General Operating Account
Balance
$1,931
Total Commercial Bank Accounts
--------------------------
$2,268,790
LOCAL GOVERNMENT INVESTMENT POOLS
Colorado Trust Capital Projects Proceeds
Interest
5.160%
• Balance
$774,527
Total Local Government Investment Pool Accounts
_
$774,527
MONEY MARKET FUNDS
Bank One Money Market Fund - Dana Investments
Interest 3•904%
Balance r $92,373
Fidelity Investment Government Money Market Accounts
Interest 5.180%
Bond Issue Reserve Account
Balance $6,183
--------------------------
Total Money Market Funds $98,556
--------------------------
Total all accounts $3_141,873_
11/21/96
invmmjlp Page 3
Certificates of Deposit
as of October 31, 1996
nk Name, Location
Days to
Hates
Purchase
Maturity
Maturity
Maturity
Ins Coupon Yield
Date
Date
at Purchase
Value
BestBank, Thornton Colorado
FDIC 7.250%
16-Feb-95
16-Feb-97
108
$99,000
Firstbank of Vail, Vail Colorado
FDIC 6.000% 5.8301/o
26-Jun-95
26-Jun-98
603
$99,000
Avg Yield 6.5400/6
----------------------
$198,000
11 /21 /96
invcdjlp Page 4
Government Securities
as of October 31,19%
-Treasury Notes & Bills-
•
Daysto
Days
Interest Rate
Purchase
Maturity
Maturity
to
Book
Par
�}'Q� Fund
T1Jate
Cou
Yield
Date
Date
at Purchase
Maturity
Value
Value
Pooled
7.30D9b
5.513%
17-Apr-96
31-Jan-97
289
92
$1,004,781
$i,",000
TSbip Pooled
5.970%
5.970%
26-Apr-96
IS-May-97
384
196
$970,690
$1,000,000
TNote Pooled
5.250%
6.370%
11-Jun-96
31Jul-98
780
638
$491,124
$500.000
Average Yield
5.86%
$2,466,595
$2,500 000
Average Days
to Maturity
309
-----
"'GNWS"•
Years to
Estimated
Interest Rate
Purchase
Maturity
Maturity
Years to
Principal
Pool
Couppoon�
Yield
Date
Date
at Purchase
Matu('
Outstandi��qq
5803
8.1f009tr
8.480%
14-Nov-88
15-Oct-05
19.10
11 _a0
$20,ta'35
13003
8.000%
9.500%
24-Oct-W
15-Oct-06
20.20
12.00
$18,664
14659
8,000%
9.200%
24-Oct-86
15Jan-07
2120
13.00
$18.350
Avg Yield
9.039%
$57,649
-U.S. Savings Bonds -
Years to
Issue
Maturity
Maturity
Years to
Book
Maturity
Series
Yield
Date
Date
at Purchase
Matul(y
Value
Value
EE
7.170%
01.Oct-86
01-00-96
10.00
NIA
$30000
$30,000
'""Federal Agency Discount Notes & Bonds-
Days/Years
Days/Years to
Interest Rate
Purchase
Maturity
to Maturity
Maturity at
Book
Original
gency Fund
Coupon
Yield
Date
Date
at Purchase
Month End
Value
Cost
A Pooled - Dana
9.475%
29-Jun-94
25-Fet)-2008
13.7
11.3
$43.114
$82,749
Pooled - Dana
8.975%
26-May-94
25-Mar-2008
13.8
11.4
$83.471
$109J34
Pooled - Dana
9.475%
18-Aug-94
25Jul-2008
13.9
11.7
$63,191
$109.875
SBA Pooled - Dana
8.125%
31.Oct-96
25Jan-2013
16.2
162
$65,143
$65.558
SBA Pooled - Dana
8.725%
29Jun-94
25-Jun-2019
25.0
22.7
$100,928
$108.523
SBA Pooled - Dana
8.975%
12Jul-94
25Jun-2019
25.0
22.7
$61I.Ne
$108,744
SBA Pooled - Dana
8,725%
08-May-95
25-Dec-2019
24.6
23.2
$98.114
$99,391
FNMA Pooled - Dana
6.682%
01Jul-96
01-May-2026
29.9
29,5
$55.304
$55,304
FNMA Pooled - Dana
5.967%
24Jun-96
01-Jun-2026
30.0
29.6
$63.142
$71,318
FNMA Pooled - Dana
8.314%
28Jun-94
01-Oct-2017
23.3
20.9
$75.316
$97,572
FNMA Pooled - Dana
7.616%
27-May-94
01-May-2020
25.9
23.5
$66.139
$100,577
FNMA Pooled - Dana
7.559%
24Jan-96
01-Oct-2023
27.7
26.9
$63,848
$75,722
FHLMCPooled - Dena
5.965%
28-Mar-96
01-Mar-2026
29.9
29.4
$60.528
$66.341
FHLMCPooled - Dana
7.851%
28-Aug-94
01-Aug-2018
23.9
21.8
$66.172
$74,245
FHLMC Pooled- Dana
8.407%
284un-94
01-Mar-2019
24.7
22.3
$41,664
$66.355
FHLMC Pooled - Dana
6.366%
22-May-95
01-Feb-2036
39.7
39.3
$60,460
$60,461
AveragaYlold
8.01%
$1.068.428
$1.352469
Average Years
to Maturity
21
- _-
DayslYears
Days/Yeam to
Interest Rate
Purchase
Maturity
to Maturity
Maturity at
Book
Maturity
Agency Fund
Coupon
Yield
Date
Date
atPurchase
Month End
Value
Value
FNMA Debt Service
6.912%
27-Feb-95
17-Jan-97
1.9
78.0
$280.647
$280,000
FHLB Pooled
5.998%
26-Apr-96
10-Nov-97
1.5
1.0
$993,805
$1,0W,D00
FHLMC Pooled
5.340%
31-Oct-96
20-Nov96
20.0
20.0
$847,612
$850,000
FHLB Pooled
5.783%
30Sep-96
25Sep97
360.0
329.0
$500,457
WON()
FNMA Pooled
5.340%
31.Oct-96
26-Nov-96
26.0
26.0
$1,145,807
$1,150,000
FNMA Pooled
5.880%
10-Ott-96
10Jun-98
1.7
1.6
$496,151
$500,000
FHLMC Pooled
5.751%
28-Aug-96
26-Aug-97
1.0
301.0
$699,369
$700,W0
5.354%
07-Aug-96
08-Nov-96
93.0
8.0
1998.960
$1,000,000
Pooled
5.297%
30-Sep-96
iSNov-96
46.0
15.0
$698,561
$700,000
10Pooled
, Pooled
5.301%
23-Aug-96
22-Nov-96
91.0
22.0
$747,688
$750,000
FFC Pooled
5.330%
31.Oct-96
19.0ec-96
49.0
49.0
$1,489,558
$1,500,000
FFC Pooled
5.794%
27Jun-95
28-Apr-97
1.8
179.0
$651,260
$650,000
$9.549_
$7.430.000
Average Yield
5,56%
Average Days to Maturity
58
Total
$13.172,267
11121f96
iNVTR10.YVK4 Page 5
s-
MEMORANDUM FILE COPY
TO: Planning and Environmental Commission
FROM: Department of Community Development
DATE: November 25, 1996
SUBJECT: . A request to amend Section 18.22.030, Conditional Uses, of the Vail Municipal
Code to add "time-share estate units, fractional fee units and time-share license
units" as a conditional use in the Public Accommodation Zone District and .
establishing additional conditional use factors for time-share estate units,
fractional fee units and/or time-share license units in the Public Accommodation
Zone District.
Applicant: Sonnenalp Properties, Inc., represented by Gordon Pierce
Planner: George Ruther
DESCRIPTION OF THE REQUEST
The applicant, Sonnenalp Properties, Inc., represented by Gordon Pierce, is requesting to amend
• the Town of Vail Municipal Code. The applicant is proposing that Section 18.22.030 of the
Municipal Code be amended to allow time-share estate units, fractional fee units and time-
share license units as conditional uses in the Public Accommodation Zone District and to Sob ck4v
create Section 18.22.035, Conditional Uses - Factors applicable. The time-share estate units,c.o -Hix
fractional fee units and time-share license units would be allowed subject to the issuance of a
conditional use permit, pursuant to the provisions of Chapter 18.60 of the Municipal Code.
BACKGROUND
The applicant's request relates to a future proposal to redevelop the Austria Haus property. The
Austria Haus is located at 242 East Meadow Drive. The Austria Haus was originally constructed
in the mid-1960's as an inn to accommodate destination skiers. In 1979, the Austria Haus was
purchased by the Faessler family who planned to redevelop the property into the Sonnenalp
Hotel.
In 1984, Ordinance #8 was approved by the Vail Town Council establishing Special Development
District #12. Special Development District #12 adopted an approved development plan for the
redevelopment of the Austria Haus. The approved development plan was never implemented,
and has since expired, but instead, the Austria Haus underwent a remodel. Since the completion
•of the remodel, the Austria Haus has served as an annex to the Sonnenalp Bavaria Haus located
at 20 Vail Road.
The Austria Haus has 37 hotel rooms (accommodation units) with approximately "75 pillows" and
is operated approximately eight months each year by the Sonnenalp Hotel. There is a small
restaurant and bar in the Austria Haus that serves its guests and a retail outlet on the east end of
the building. The hotel rooms are marginal in size (300 sq. ft. average) and lack certain
amenities, by today's accommodation standards.
The current proposal to redevelop the property intends to provide considerably more `pillows"
over a twelve month period, as well as create approximately 10,000 square feet of new
commercial space. The applicant has proposed that a percentage of the project be offered as
time-share interval ownership units. The applicant has also proposed to accommodate a portion
of the required parking and loading/delivery in an underground parking structure.
According to the Official Zoning Map of the Town of Vail, the applicant's property is currently
zoned Public Accommodation, The Public Accommodation Zone District is intended to provide
sites for lodges and residential accommodations for visitors, together with such public and semi-
public facilities and limited professional offices, medical facilities, private recreation, and related
visitor oriented uses as may be located in the same district. The Public Accommodation District
is intended to provide sites for lodging units to densities not to exceed 25 dwelling units per acre.
The Public Accommodation Zone District does not permit time-share interval units.
interval ownership is currently allowed only in the High Density Multi -Family Zone District
pursuant to Ordinance #8, Series of 1981. There is no vacant property in the High Density Multi -
Family Zone District. All properties currently zoned High Density Multi -Family are developed. In
order for a time-share project to be constructed in the High Density Multi -Family Zone District, a
developer would either have to convert an existing condominium or hotel project, or undergo an
entire redevelopment of the property. A third possible alternative for the construction of a time-
share project in the Town of Vail, would be to rezone an existing parcel of property from its
current zoning to High Density Multi -Family. .
Chapter 18.04 of the municipal code provides definitions of time-share estate units, fractional fee
units and time-share license units. According to Sections 18.04.420, 18.04.430 and 18.04.440,
time-share estate units, tractional fee units and time-share license units are defined as follows:
Time-share estate units Means either an interval estate or a timespan estate. A timespan
estate is a combination of an undivided interest in a present estate in fee simple in a unit,
the magnitude of the interest having been established by the time of the creation of the
timespan estate either by the project instruments or by the deed conveying the timespan
estate; and an exclusive right to possession and occupancy of the unit during an annually
recurring period of time defined and established by a recorded schedule set forth or
.referred to in the deed conveying the timespan estate. Additionally, an interval estate is
an estate for four years terminating on a date certain, during which years titled to a
timeshare unit circulates among the interval owners in accordance with a fixed schedule,
vesting in each such interval owner in turn for a period of time established by the said
schedule, with the series thus established recurring annually until the arrival of the date
certain.
Fractional fee units; Is defined as a tenancy in common interest in improved real property,
including condominiums, created or held by persons, partnerships, corporations, or joint
ventures or similar entities, wherein the tenants in common have formerly arranged by
oral or written agreement or understanding, either recorded or unrecorded allowing for the
use and occupancy of the property by one or more co -tenants to the exclusion of one or
more co -tenants during any period, whether annually reoccurring or not which is binding
upon any assignee or future owner of a fractional fee interest or if said agreement
continues to be in any way binding or affective upon any co -tenant for the sale of any
interest in the property.
Time-share license units: Shall be defined as a contractual right to exclusive occupancy of
specified premises. Provided that the occupancy of the premise is divided into five or
more separate time periods extending over a term of more than two years. The premises
may consist of one parcel, unit or dwelling, or any of several parcels, units or dwellings
identified at the time the license is created to be identified later. No timeshare is a
timeshare license if it meets the definition of interval estate, timeshare or timespan
estate.
III. CONFORMITY WITH THE TOWN'S RELEVANT PLANNING DOCUMENTS
In considering the proposed text amendment to the Zoning Code, to allow time-share in the
Public Accommodation Zone District as a conditional use, staff reviewed several relevant
planning documents. Specifically, staff reviewed the Municipal Code, the Goats and Objectives
stated in the Vail Land Use Plan and the Vail Village Master Plan.
VAIL MUNICIPAL CODE
Section 18.22.010 of the Vail Municipal Code, identifies the purpose of the Public
Accommodation Zone District, According to the purpose statement,
" The Public Accommodation Zone District is intended to provide sites for lodges
and residential accommodations for visitors, together with public and semi-public
facilities and limited professional offices, medical facilities, private recreation, and
related visitor -oriented uses as may appropriately located in the same district.
The Public Accommodation District is intended to insure adequate light, air, open
space and other amenities commensurate with lodge uses, and to maintain the
desirable resort qualities of the district by establishing appropriate site
development standards. Additional non-residential uses are permitted as
conditional uses which enhance the nature of Vail as a winter and summer
recreation and vacation community, and where permitted, are intended to function
compatibly with the high density lodging character of the district. The Public
Accommodation Zone District is intended to provide sites for lodging units at
densities not to exceed 25 dwelling units per acre."
According to Section 18.22.020, of the Town of Vail Municipal Code, the following uses shall be
permitted in the Public Accommodation Zone District:
a) Lodges, Including accessory eating, drinking, recreational or retail
establishments located within the principal use and not occupying more than 100%
of the total Gross Residential Floor Area of the main structure or structures on the
site;
b) Additional accessory dining areas may be located on an outdoor deck, porch or
terrace.
Chapter 18.60 of the Town of Vail Municipal Code provides a framework for making decisions on
requests for conditional use permits within the Town of Vail. Section 18.60.010 identities the
purpose and limitations of a conditional use permit. According to the Purpose Statement,
"In order to provide the flexibility necessary to achieve the objectives of the Zoning Code,
specified uses are permitted in certain zone districts subject to the granting of a
conditional use permit. Because of their unusual or special characteristics, conditional
uses require review and evaluation so that they may be located properly with respect to
the purposes of the Zoning Code and with respect to their effects on surrounding
properties. The review process prescribed in Chapter 18.60 is intended to assure
compatibility and harmonious development between conditional uses and surrounding
properties and the Town of Vail at large. Uses listed as conditional uses in the various
zone districts may be permitted subject to such conditions and limitations as the Town of
Vail may prescribe to insure that the location and operation of the conditional uses will be
in accordance with development objectives of the Town and will not be detrimental to
other uses or properties. Where conditions cannot be devised to achieve these
objectives, applications for conditional use permits shall be devised."
Section 18.60.060, Criteria -Findings, identifies the Criteria and Findings which the Planning
Commission shall consider with respect to the proposed use before acting upon a conditional use
permit application.
A. The following Criteria -Findings shall be considered by the Planning and
Environmental Commission when acting upon a request for a conditional use
permit:
1. Relationship and impact of the use on development objectives of the
Town;
2. The effect of the use on light and air, distribution of population,
transportation facilities, utilities, schools, parks and recreation
facilities, and other public facilities needs;
3. Effect upon traffic with particular reference to congestion, automotive
and pedestrian safety and convenience, traffic flow and control,
access, maneuverability, and removal of snow from the street and
parking areas;
4. Effect upon the character of the area in which the proposed use is to
be located, including the scale and bulk of the proposed use in
relation to surrounding uses;
5. Such other factors and criteria as the Commission deems applicable
to the proposed use; 0
6. The Environmental Impact Report concerning the proposed use, if an
Environmental Impact Report is required by Chapter 18.56;
7. Prior to the approval of a conditional use permit for a time-share
estate, fractional fee or time-share license proposal, the applicant
shall submit to the Town a list of all owners of existing units within
the project or building; and written statements from 100% of the
owners of existing units indicating their approval, without condition,
of the proposed time-share, fractional fee, or time-share license. No
written approval shall be valid if it is signed by the owner more than
60 days prior to the date of filing the application for a conditional use.
All buildings which presently contain time-share units, would be
exempt from this provision.
B. The Planning Commission shall make the following findings before granting a
conditional use permit:
1. That the proposed location of the use in accordance with the
purposes of this Ordinance and the purposes of the zone district in
which the site is located;
2. That the proposed location of the use and the conditions under which
it would be operated or maintained would not be detrimental to the
public health, safety, or welfare or materially injurious to properties or
Improvements in the vicinity;
3. That the proposed use would comply with each of the applicable
provisions of this title.
VAIL LAND USE PLAN
• Chapter II of the Vail Land Use Plan identifies goals and policies for land use within the Town of
Vail. The goals articulated by the Vail Land Use Plan reflect the desires of the citizenry. The
goals are to be used as adopted policy guidelines in the review process for new development
proposals. Staff has identified the following goals (listed below), as being relevant to the
applicant's proposal:
1. General Growth / Development
1_1 Vail should continue to grow in a controlled environment,
maintaining a balance between residential, commercial and
recreational uses to serve both the visitor and the permanent
resident.
The quality of development should be maintained and upgraded
whenever possible.
1 4 The original theme of the old Village core should be carried into
new development in the Village core through continued
implementation of the urban Design Guide Plan.
1122 Vail should accommodate most of the additional growth in existing
developed areas (infill areas).
2. Skier ! Tourist Concerns
The community should emphasize its role as a destination resort
while accommodating day skiers.
3. Commercial
2.2 The ski area owner, the business community and the Town leaders
should work together closely to make existing facilities and the
Town function more efficiently.
2_4 The community should improve summer recreational and cultural
opportunities to encourage summer tourism.
3 1 The hotel bedbase should be preserved and used more efficiently.
3.2 The Village and Lionshead areas are the best location for hotels to
serve the future needs of destination skiers.
3_4 Commercial growth should be concentrated in existing commercial
areas to accommodate both local and visitor needs.
Village Core / Lionshead
442 Increased density in the core areas is acceptable so long as the
existing character of each area is preserved through the
implementation of the Urban Design Guide Plan and the Vail
Village Master Plan.
Residential
,2 Quality time-share units should be accommodated to help keep
occupancy rates up.
6. Additional goals related to other elements of the comprehensive plan.
Economic Development
The Town of Vail should consider developing some type of mechanism to control
tenant mix, so that a balance between tourist and convenient type of commercial
uses is maintained.
VAiL VILLAGE MASTER PLAN:
On January 16, 1990, the Vail Town Council adopted the Vail Village Master Plan. The plan is
intended to guide the Town in developing land use laws and policies for coordinating
development by the public and private sectors in the Vail Village area and in implementing
community goals for public improvements. It is intended to result in ordinances and policies that
will preserve and improve the unified and attractive appearance of Vail Village. Most importantly,
the Master Plan shall serve as a guide to the staff, review boards, and Town Council in analyzing
future proposals for development in Vail Village and in legislating effective ordinances to deal .
with such development. For the citizens and guests of Vail, the Master Plan provides a clearly
defined set of goals and objectives outlining how the Village will grow in the future. The Vail
Village Master Plan is intended to be consistent with the Vail Village Urban Design Guide Plan,
and along with the Guide Plan it underscores the importance of the relationship between the built
environment and public spaces. The Vail Village Master Plan has been adopted as an element
of the Vail Comprehensive Plan,
Goals for Vail Village are summarized in six major goal statements. The goal statements are
designed to establish a framework, or direction, for the future growth of the Village. A series of
objectives outlines specific steps that can be taken towards achieving each stated goal. Policy
statements have been developed to guide the Town's decision making in achieving each of the
stated objectives, whether it be through the review of private sector development proposals or in
implementing capital improvement projects.
Goal #1 Encourage high quality redevelopment while preserving the unique
architectural scale of the Village in order to sustain its sense of
community and identity.
1.2 Objective:. Encourage the upgrading and redevelopment of
residential and commercial facilities.
1.2.1 Policy: Additional development may be allowed as
identified by the action plan as is consistent
with the Vail Village Master Plan and Urban
Design Guide Plan.
Goal #2 To foster a strong tourist industry and promote year-round economic
health and viability for the Village and for the community as a whole.
2.1 Objective: Recognize the variety of land uses found in the 10 sub-
areas throughout the Village and allow for development that
• is compatible with these established land use patterns.
2.1.1 Policy: The Zoning Code and development review criteria
shall be consistent with the overall goals and
objectives of the Vail Village Master Plan.
2.3 Objective: Increase the number of residential units available for short-
term, overnight accommodations.
2.3.1 Policy: The development of short-term accommodation
units is strongly encouraged. Residential units that
are developed above existing density levels are
required to be designed or managed in a manner
that makes them available for short-term overnight
rental.
2.4 Objective: Encourage the development of a variety of new commercial
activity where compatible with existing land uses.
2.4.1 Policy: Commercial infill development consistent with
• established horizontal zoning regulations shall be
encouraged to provide activity generators,
accessible green spaces, public plazas, and
streetscape improvements to the pedestrian
network throughout the Village.
7
2.4.2 Policy: Activity that provides nightlife and evening
entertainment for both the guest and the community
shall be encouraged.
2.5 Objective: Encourage the continued upgrading, renovation and
maintenance of existing lodging and commercial facilities to
better serve the needs of our guests.
2.6 Objective: Encourage the development of affordable housing units
through the efforts of the private sector.
2.6.1 Policy: Employee housing units may be required as part of
any new or redeveloped project requesting density
over that allowed by existing zoning.
2.6.2 Policy: Employee housing shall be developed with
appropriate restrictions so as to insure their
availability and affordability to the local work force.
Goal #3 To recognize as a top priority the enhancement of the walking
experience throughout the Village.
3.1 Objective: Physically improve the existing pedestrian ways by
landscaping and other improvements.
3.1.1 Policy: Private development projects shall incorporate
streetscape improvements (such as paver
treatments, landscaping, lighting and seating
areas), along adjacent pedestrian ways.
3.2 Objective: Minimize the amount of vehicular traffic in the Village to the
greatest extent possible.
3.2.1 Policy: Vehicular traffic will be eliminated or reduced to
absolutely minimal necessary levels in the
pedestrianized areas of the Village.
3.3 Objective: Encourage a wide variety of activities, events and street life
along pedestrian ways and plazas.
3.4 Objective: Develop additional sidewalks, pedestrian -only walkways
and accessible green space areas, including pocket parks
and stream access.
3.4.2 Policy: Private development projects shall be required to
incorporate new sidewalks along streets adjacent to
the project as designated in the Vail Village Master
Plan and/or Recreation Trails Master Plan.
Goal #4 To preserve existing green space areas and expand green space
opportunities.
4.1 Objective. Improve existing open space areas and create new plazas
with green space and pocket parks. Recognize the
different roles of each type of open space in forming the
overall fabric of the Village.
4.1.2 Policy: The development of new public plazas, and
improvements to existing plazas (public art,
streetscape features, seating areas, etc.), shall be
encouraged to reinforce their roles as attractive
people places.
Goal #5 Increase and improve the capacity, efficiency and aesthetics of the
transportation and circulation system throughout the Village.
5.1 Objective: Meet parking demands with public and private parking
facilities.
5.1.1 Policy: For new development that is located outside of the
Commercial Core 1 Zone District, on -site parking
shall be provided (rather than paying into the
parking fund) to meet any additional parking
• demand as required by the Zoning Code.
5.1.5 Policy. Redevelopment projects shall be strongly
encouraged to provide underground or visually
concealed parking.
Goal #6 To insure the continued improvement of the vital operational elements
of the Village.
6.1 Objective: Provide service and delivery facilities for existing and new
development.
Sub -Area #178 Sonnenalp(Austria Haus)/Slifer Square
Commercial infill along East Meadow Drive, to provide stronger
edge to street and commercial activity generators to reinforce the
pedestrian loop throughout the Village. Focus of infill is to provide
improvements to pedestrian circulation with a separated walkway,
including buffer, along East Meadow Drive.
. Accommodating on -site parking and maintaining the bus route
along Meadow Drive, are two significant constraints that must be
addressed. One additional floor of residential/lodging may also be
accommodated on this site.
As stated previously, the applicant is proposing to add "time-share estate units, fractional fee
units and time-share license units" as conditional uses to Section 18.22.030, Conditional Uses
and staff is proposing to create Section 18.22.035, establishing additional conditional use factors
to consider when reviewing a request for a conditional use permit for a time-share estate,
tractional fee and/or time-share license unit in the Public Accommodation Zone District. The
proposed changes to Section 18.22.030 are shown as shaded below:
Chapter 18.22 Public Accommodation
18.22.030 Conditional uses
The following conditional uses shall be permitted in the Public Accommodation Zone
District, subject to issuance of a conditional use permit in accordance with the provisions
of Chapter 18.60:
A. Professional and business offices;
B. Hospitals, medical and dental clinics, and medical centers;
C. Private clubs and civic, cultural and fraternal organizations;
D. Ski lifts and tows;
E. Theaters, meeting rooms, and convention facilities;
F. Public or commercial parking facilities or structures;
G. Public transportation terminals;
H. Public utility and public service uses;
I. Public buildings, grounds and facilities:
J. Public or private schools;
K. Public parks and recreational facilities;
L. Churches;
M. Eating, drinking, recreational, or retail establishments not occupying more than 10% of
the total Gross Residential Floor Area of a main structure or structures located on the site
in a non -conforming multi -family dwelling;
N, Major arcade, so long as it does not have any exterior frontage on any public way, street,
walkway, or malt area;
O. Bed and Breakfast as further regulated by Section 18.58.310;
P. Type III EHU as defined in Section 18.57.060;
Q. Type IV EHU as defined in Section 18.57.70;
R. Time-share :estates units, fractional fee units and time-share 11d6n5t3 E1its 88#urth
regulated by. Section 18.22.035.
ADDITIONAL CONDITIONAL USE FACTORS
Staff is proposing to establish additional conditional use factors to be used in the consideration of
a conditional use permit request for time-share projects in the Public Accommodation Zone
District. According to discussions with the applicant and Planning and Environmental
Commission, staff believes that time-share projects could be compatible with the existing
permitted, conditional and accessory uses allowed in the Public Accommodation Zone District
given that certain factors are met. A similar approach is currently used in the Commercial Core 1
Zone District to address conditional uses.
10
Staff proposes that the following additional conditional use factors be established through the
creation of a new section in Chapter 18.22. The proposal is as follows:
18,22.035 Conditional Uses - Factors applicable.
In addition to the criteria found in Chapter 18.60, an application for a conditional use
permit for a time-share estate unit, fractional fee unit, and/or a time-share license unit in
the Public Accommodation Zone District shall be evaluated subject to the following review
criteria:
A. A proposed time-share project shall have no adverse effects upon the
hotel bed base (i.e., overnight accommodations) in the Town of Vail. In
determining the effects of a time-share project on the hotel bed base,
consideration shall be given to the proposed on -site relationship and ratio
of time-share units to accommodation units, the availability of lock -offs•
units and the short-term rental opportunities of time-share units when not
in use by the owner(s). The cumulative effects of the proposed time-share
project and other existing time-share projects shall also be considered.
B. A proposed time-share project shall have no adverse effects upon the.
gross square footage of existing accommodation units in the Town of Vail,
Consideration shall be given to allowing for the inclusion of the proposed
lock -off square footage as accommodation unit square footage.
C. A proposed time-share project shall have no adverse impacts upon
adjacent properties. Adverse impacts to consider may include, but are not
limited to, impacts to traffic, parking, noise, the character of the area,
loading/delivery and trash facilities.
D. A proposed time-share project shall have no adverse effects upon the
nature of Vail as a world -class resort offering winter and summer
recreation and vacation opportunities. The cumulative effects of the
proposed time-share project and other existing time-share projects shall
also be considered.
E. The proposed time-share project's ability to provide accommodation and.,
recreation amenities to its guests and the Town of Vail. Amenities to
consider include, but are not limited to, proximity of the project to public
transportation, availability of conference/meeting room space, availability
of hotel -type services, proximity of the project to retail shops and
eating/drinking establishments, on -site recreation facilities and proximity to
community recreation facilities.
1=. The applicant's ability to guarantee the future adequacy, stability and
continuity of a high-level of management and maintenance of the time-
share project.
G. Whether an office of the managing agent is located locally, or on the site
of the time-share project.
H. Whether a front desk operation, operating 24 hours a day and seven days
a week, with reservation/registration capabilities, exists within the
proposed time-share project.
11
The effects of a proposed time-share project upon the goals, objectives
and policies prescribed in the adopted Town of Vail Comprehensive Plan
Elements and the proposal's compliance with the Municipal Code.
A proposed time-share project shall have no adverse effects upon the
present and future supply of Town services, including, but not limited to,
loss of tax revenue and increased demand on municipal facilities. The
cumulative effect of the proposed time-share project and other existing
time-share projects shall also be considered.
The proposed duration of time-share intervals.
Whether the developer of the time-share project plans to offer resale
assistance and/or exchange program affiliation to time-share interval
purchasers.
Prior to the approval of a conditional use permit for a time-share estate,
fraction fee or time-share license unit proposal, the applicant shall submit
to the Town a list of all owners of existing units within the project or
building; and written statements from 100% of the owners of existing units
indicating their approval, without condition, of the proposed time-share,
fractional fee, and/or time-share license. No written approval shall be valid
if it is signed by the owner more than 60 days prior to the date of filing the
application for a conditional use. All buildings which presently contain
time-share interval units, are exempt from this provision.
STAFF RECOMMENDATION
The Community Development Department staff recommends that the Planning and
Environmental Commission recommend approval to the Town Council of the applicant's request
to amend Section 18.22.030, Public Accommodation, Conditional Uses, of the Town of Vail
Municipal Code. Staff recommends that the PEC make the finding that adding this conditional
use, with the additional review criteria to those uses listed in the Public Accommodation (PA)
Zone District, will continue to ensure compatibility with other uses in the PA Zone District. The
staffs recommendation of approval is conditioned upon the approval of the proposed Additional
Conditional Use factors listed in Section IV of this memorandum.
fAeveryonelpeclmemoslsonnenalp. n25 12
0
MEMORANDUM
TO: Planning and Environmental Commission
FROM: Department of Community Development
DATE: November 11, 1996
SUBJECT: A worksession to discuss a request to amend Section 18,22.030, Conditional
Uses, of the Vail Municipal Code to add "time-share estate units, fractional fee
units and time-share license units" as a conditional use in the Public
Accommodation Zone District.
Applicant: Sonnenalp Properties, Inc., represented by Gordon Pierce
Planner: George Ruther
1. DESCRIPTION OF THE REQUEST
The applicant, Sonnenalp Properties, Inc., represented by Gordon Pierce, is requesting a
worksession to discuss amending the Town of Vail Municipal Code. The applicant is proposing
that Section 18.22.030 of the Municipal Code be amended to allow time-share estate units,
fractional fee units and time-share license units as conditional uses in the Public
Accommodation Zone District. The time-share estate units, fractional fee units and time-share
license units would be allowed subject to the issuance of a conditional use permit, pursuant to
the provisions of Chapter 18.60 of the Municipal Code. The areas of Town most affected by the
proposed amendment are illustrated on Attachment 1.
II. BACKGROUND
The applicant's request relates to a future proposal to redevelop the Austria Haus property. The
Austria Haus is located at 242 East Meadow Drive. The Austria Haus was originally constructed
in the mid-1960's as an inn to accommodate destination skiers. In 1979, the Austria Haus was
purchased by the Faessler family who planned to redevelop the property into the Sonnenalp
Hotel.
In 1984, Ordinance #8 was approved by the Vail Town Council establishing Special Development
District #12. Special Development District #12 adopted an approved development plan for the
redevelopment of the Austria Haus. The approved development plan was never implemented,
and has since expired, but instead, the Austria Haus underwent a remodel. Since the completion
of the remodel, the Austria Haus has served as an annex to the Sonnenalp Bavaria Haus located
at 20 Vail Road.
• The Austria Haus has 37 hotel rooms (accommodation units) with approximately"75 pillows" and
is operated approximately eight months each year by the Sonnenalp Hotel. There is a small
restaurant and bar in the Austria Haus that serves its guests and a retail outlet on the east end of
the building. The hotel rooms are marginal in size (300 sq. ft. average) and lack certain
amenities, by today's accommodation standards.
The current proposal to redevelop the property intends to provide considerably more "pillows"
over a twelve month period, as well as create approximately 10,000 square feet of new
commercial space. The applicant has proposed that a percentage of the project be offered as
time 'share interval ownership units. The applicant has also proposed to accommodate a portion
of the required parking and loading/delivery in an underground parking structure.
According to the Official Zoning Map of the Town of Vail, the applicant's property is currently
zoned Public Accommodation. The Public Accommodation Zone District is intended to provide
sites for lodges and residential accommodations for visitors, together with such public and sernk
public facilities and limited professional offices, medical facilities, private recreation, and related
visitor oriented uses as may be located in the same district. The Public Accommodation District
is intended to provide sites for lodging units to densities not to exceed 25 dwelling units per acre.
The Public Accommodation Zone District does not permit time-share interval units.
Interval ownership is currently allowed only in the High Density Multi -Family Zone District
pursuant to Ordinance #8, Series of 1981. There is no vacant property in the High Density Multi -
Family Zone District. All properties currently zoned High Density Multi -Family are developed. In
order for a time-share project to be constructed in the High Density Multi -Family Zone District, a
developer would either have to convert an existing condominium or hotel project, or undergo an
entire redevelopment of the property. A third possible alternative for the construction of a time-
share project in the Town of Vail, would be to rezone an existing parcel of property from its
current zoning to High Density Multi -Family.
Chapter 18.04 of the municipal code provides definitions of time-share estate units, fractional fee
units and time-share license units. According to Sections 18.04.420, 18,04.430 and 18.04.440,
time-share estate units, fractional fee units and time-share license units are defined as follows:
Time-share estate units: Means either an interval estate or a timespan estate. A timespan
estate is a combination of an undivided interest in a present estate in fee simple in a unit,
the magnitude of the interest having been established by the time of the creation of the
timespan estate either by the project instruments or by the deed conveying the timespan
estate; and an exclusive right to possession and occupancy of the unit during an annually
recurring period of time defined and established by a recorded schedule set forth or
referred to in the deed conveying the timespan estate. Additionally, an interval estate is
an estate for four years terminating on a date certain, during which years titled to a
timeshare unit circulates among the interval owners in accordance with a fixed schedule,
vesting in each such interval owner in turn for a period of time established by the said
schedule, with the series thus established recurring annually until the arrival of the date
certain.
Fractional fee units: Is defined as a tenancy in common interest in improved real property,
including condominiums, created or held by persons, partnerships, corporations, or joint
ventures or similar entities, wherein the tenants in common have formerly arranged by
oral or written agreement or understanding, either recorded or unrecorded allowing for the
use and occupancy of the property by one or more co -tenants to the exclusion of one or .
more co -tenants during any period, whether annually reoccurring or not which is binding
upon any assignee or future owner of a fractional fee interest or if said agreement
continues to be in any way binding or affective upon any co -tenant for the sale of any
interest in the property.
Time-share license units_ Shall be defined as a contractual right to exclusive occupancy of
specified premises. Provided that the occupancy of the premise is divided into five or
more separate time periods extending over a term of more than two years. The premises
may consist of one parcel, unit or dwelling, or any of several parcels, units or dwellings
identified at the time the license is created to be identified later. No timeshare is a
timeshare license if it meets the definition of interval estate, timeshare or timespan
estate.
Ill. HISTORY OF TIME-SHARING IN VAIL
The State of Colorado has adopted regulations regulating the sale of time-shares. For the most
part, the regulations adopted by the State of Colorado are concerned with financial disclosures,
regulation of sales practices and disclosures, regulation Of sales practices and classification of
time-sharing as a subdivision of property. The regulations adopted by the State of Colorado are
intended more to protect the consumer, than as regulations designed to have impacts on the
community level. The State has granted the authority for local governments to adopt ordinances
intended to protect the health, safety, and general welfare of the community, which includes time-
share projects.
On July 15, 1980, the Vail Town Council adopted five ordinances to regulate time-sharing
projects in the Town of Vail. A summary of each of the ordinances is listed below:
• Ordinance # 25, Series of 1980, an ordinance amending Chapter 17 (Subdivision
• Regulations) of the Town of Vail Municipal Code, providing a new definition for the term
subdivision; and setting forth prohibited and unlawful acts and remedies for violations of
this ordinance, and amending the procedure for appealing a decision of the Planning and
Environmental Commission to the Town Council. In the opinion of the then Vail Town
Council, the present subdivision regulations were not sufficient to deal with the problem
presented by time-sharing projects and therefore, the procedure for subdividing property
associated with time-sharing projects should be amended. Ordinance #25 further went
on to require that time-sharing projects go through the subdivision review process. Prior
to the adoption of Ordinance #25, Series of 1980, the Town of Vail did not have any
regulations requiring that time-sharing projects be reviewed through the subdivision
process.
• .,Ordinance # 26, Series of 1980, providing for the addition of new conditional uses in
certain zone districts. Ordinance #26 was established to protect the balance between
accommodations for visitors to the Town, Vail residents and seasonal employees from
the unregulated development of time-sharing projects. It was the opinion of the then Vail
Town Council that the zoning regulations in place in 1980 did not sufficiently address the
problems presented by time-sharing. The ordinance amended Title 18 of the Municipal
Code allowing time-share estate units, fractional fee units and time-share license units in
the High Density Multi -Family, Public Accommodation, Commercial Core 1 and
• Commercial Core 2 Zone Districts, subject to the Issuance of a conditional use permit.
• Ordinance # 27, Series of 1980, an ordinance providing for certain disclosure
requirements for time-sharing projects; providing for public offering statements and
setting forth requirements for such offering statements: for the escrowing of deposits or
reservations of a time-share unit; and setting forth remedies for violations of said
ordinance. According to the minutes of the July 15, 1980 Vail Town Council meeting, the
Council had determined that the health, safety and welfare of the inhabitants of the Town
of Vail would best be served by requiring the disclosure of certain facts and information
relating to time-sharing projects, and to the perspective purchasers of time-share units.
The amendment established disclosure requirements when offering time-share project
sales and established a minimum amount of information that the developer must disclose
in a public offering statement.
Ordinance # 28, Series of 1980, an ordinance providing for registration of time-share
projects with the Department of Community Development of the Town of Vail; the
requirements for applications for registration of said units; remedies for violation of this
ordinance and standards for the revocation of such registration. The Vail Town Council
adopted Ordinance # 28 resolving that the Council had determined that the existing
ordinances and regulations of the Town were insufficient to cope with the problems
presented by time-sharing and that the registration of time-sharing units is necessary to
protect and preserve the public health, safety and welfare of the inhabitants of the
community.
Ordinance # 29, Series of 1980, an ordinance defining time-share broker and time-share
salesman: providing that any person, firm, partnership, association or corporation that
engages in the business or capacity of time-share broker or time-share salesman, must
obtain a license from the Town Clerk; setting forth the requirements for the application for
such license; providing for the display of such license, license fees and setting forth
standards and procedures for the suspension or revocation of such license. Similar to
the other ordinances relating to time-sharing projects in the Town of Vail, the then Town
Council found that these additional regulations were deemed necessary to protect and is
preserve the health, safety and welfare of the inhabitants of the Town of Vail and that
time-share brokers and time-share salesman be licensed by the Town of Vail.
On February 3, 1981, the Vail Town Council adopted Ordinance #8, Series of 1981,
amending Ordinance #26, Series of 1980, providing for the removal of time-sharing from
the conditional use section of the Public Accommodation, Commercial Core 1 and
Commercial Core 2 Zone Districts. It was the then Vail Town Council's opinion that
permitting the conversion and development of time-sharing projects in said zone districts
would upset the balance between accommodations for visitors, Vail residents and
seasonal employees and that the amendment was necessary to protect the health, safety
and welfare of the inhabitants of the community.
IV. CONFORMITY WITH THE TOWN'S RELEVANT PLANNING DOCUMENTS
In considering the proposed text amendment to the Zoning Code, to allow time-share in the
Public Accommodation Zone District as a conditional use, staff reviewed several relevant
planning documents. Specifically, staff reviewed the Municipal Code, the Goals and Objectives
stated in the Vail Land Use Plan and the Vail Village Master Plan.
V_AIL MUNICIPAL COIF .
Section 18.22.010 of the Vail Municipal Code, identifies the purpose of the Public
Accommodation Zone District. According to the purpose statement,
" The Public Accommodation Zone District is intended to provide sites for lodges
and residential accommodations for visitors, together with public and semi-public
facilities and limited professional offices, medical facilities, private recreation, and
related visitor -oriented uses as may appropriately located in the same district.
The Public Accommodation District is intended to insure adequate light, air, open
space and other amenities commensurate with lodge uses, and to maintain the
desirable resort qualities of the district by establishing appropriate site
development standards. Additional non-residential uses are permitted as
conditional uses which enhance the nature of Vail as a winter and summer
recreation and vacation community, and where permitted, are intended to function
compatibly with the high density lodging character of the district. The Public
Accommodation Zone District is intended to provide sites for lodging units at
densities not to exceed 25 dwelling units per acre."
According to Section 18.22.020, of the Town of Vail Municipal Code, the following uses shall be
permitted in the Public Accommodation Zone District:
a) Lodges, including accessory eating, drinking, recreational or retail
establishments located within the principal use and not occupying more than 10%
of the total Gross Residential Floor Area of the main structure or structures on the
site;
b) Additional accessory dining areas may be located on an outdoor deck, porch or
terrace.
VAIL LAND USE PLAN
Chapter II of the Vail Land Use Plan identifies goals and policies for land use within the Town of
Vail. The goals articulated by the Vail Land Use Plan reflect the desires of the citizenry. The
goals are to be used as adopted policy guidelines in the review process for new development
proposals. Staff has identified the following goals (listed below), as being relevant to the
applicant's proposal:
1. General Growth / Development
11.11 Vail should continue to grow in a controlled environment,
maintaining a balance between residential, commercial and
recreational uses to serve both the visitor and the permanent
resident.
13 The quality of development should be maintained and upgraded
whenever possible.
1.4 The original theme of the old Village core should be carried into
new development in the Village core through continued
implementation of the Urban Design Guide Plan.
1 A2 Vail should accommodate most of the additional growth in existing
developed areas (infill areas).
2. Skier / Tourist Concerns
The community should emphasize its role as a destination resort
while accommodating day skiers.
2^2 The ski area owner, the business community and the Town leaders
should work together closely to make existing facilities and the
Town function more efficiently.
3. Commercial
24 The community should improve summer recreational and cultural
opportunities to encourage summer tourism.
3-1 The hotel bedbase should be preserved and used more efficiently.
3.2 The Village and Lionshead areas are the best location for hotels to
serve the future needs of destination skiers.
3.4 Commercial growth should be concentrated in existing commercial
areas to accommodate both local and visitor needs.
4. Village Core / Lionshead
4,2 Increased density in the core areas is acceptable so long as the
existing character of each area is preserved through the
implementation of the Urban Design Guide Plan and the Vail
Village Master Plan.
5. Residential
9
-5 2 Quality time-share units should be accommodated to help keep
occupancy rates up. 9
Additional goals related to other elements of the comprehensive plan.
Economic Development
The Town of Vail should consider developing some type of mechanism to control
tenant mix, so that a balance between tourist and convenient type of commercial
uses is maintained.
On January 16, 1990, the Vail Town Council adopted the Vail Village Master Plan. The plan is
intended to guide the Town in developing land use laws and policies for coordinating
development by the public and private sectors in the Vail Village area and in implementing
community goals for public improvements. It is intended to result in ordinances and policies that
will preserve and improve the unified and attractive appearance of Vail Village. Most importantly,
the Master Plan shall serve as a guide to the staff, review boards, and Town Council in analyzing
future proposals for development in Vail Village and in legislating effective ordinances to deal
with such development. For the citizens and guests of Vail, the Master Plan provides a clearly
defined set of goals and objectives outlining how the Village will grow in the future. The Vail
Village Master Plan is intended to be consistent with the Vail Village Urban Design Guide Plan,
and along with the Guide Plan it underscores the importance of the relationship between the built 46
environment and public spaces. The Vail Village Master Plan has been adopted as an element
of the Vail Comprehensive Plan.
Goals for Vail Village are summarized in six major goal statements. The goal statements are
designed to establish a framework, or direction, for the future growth of the Village. A series of
objectives outlines specific steps that can be taken towards achieving each stated goal. Policy
statements have been developed to guide the Town's decision making in achieving each of the
stated objectives, whether it be through the review of private sector development proposals or in
implementing capital improvement projects.
Goal #1 Encourage high quality redevelopment while preserving the unique
architectural scale of the Village in order to sustain its sense of
community and identity.
1.2 Objective: Encourage the upgrading and redevelopment of
residential and commercial facilities.
1.2.1 Policy: Additional development may be allowed as
identified by the action plan as is consistent
with the Vail Village Master Plan and Urban
Design Guide Plan.
Goal #2 To foster a strong tourist industry and promote year-round economic
health and viability for the Village and for the community as a whole.
2.1 Objective: Recognize the variety of land uses found in the 10 sub-
areas throughout the Village and allow for development that
is compatible with these established land use patterns.
2.1.1 Policy: The Zoning Code and development review criteria
shall be consistent with the overall goals and
objectives of the Vail Village Master Plan.
2.3 Objective: Increase the number of residential units available for short-
term, overnight accommodations.
2.3.1 Policy: The development of short-term accommodation
units is strongly encouraged. Residential units that
are developed above existing density levels are
required to be designed or managed in a manner
that makes them available for short-term overnight
rental.
2.4 Objective: Encourage the development of a variety of new commercial
activity where compatible with existing land uses.
2.4.1 Policy: Commercial infili development consistent with
established horizontal zoning regulations shall be
encouraged to provide activity generators,
accessible green spaces, public plazas, and
streetscape improvements to the pedestrian
network throughout the Village.
2,4.2 Policy: Activity that provides nightlife and evening
entertainment for both the guest and the community
shall be encouraged.
2.5 Objective: Encourage the continued upgrading, renovation and .
maintenance of existing lodging and commercial facilities to
better serve the needs of our guests.
2.6 Objective: Encourage the development of affordable housing units
through the efforts of the private sector.
2.6.1 Policy: Employee housing units may be required as part of
any new or redeveloped project requesting density
over that allowed by existing zoning.
2.6.2 Policy: Employee housing shall be developed with
appropriate restrictions so as to insure their
availability and affordability to the local work force.
Goal #3 To recognize as a top priority the enhancement of the walking
experience throughout the Village.
3.1 Objective: Physically improve the existing pedestrian ways by
landscaping and other improvements.
3.1.1 Policy: Private development projects shall incorporate
streetscape improvements (such as paver
treatments, landscaping, lighting and seating
areas), along adjacent pedestrian ways.
3.2 Objective: Minimize the amount of vehicular traffic in the Village to the
greatest extent possible.
3.2.1 Policy: Vehicular traffic will be eliminated or reduced to
absolutely minimal necessary levels in the
pedestrianized areas of the Village.
3.3 Objective: Encourage a wide variety of activities, events and street life
along pedestrian ways and plazas.
3.4 Objective: Develop additional sidewalks, pedestrian -only walkways
and accessible green space areas, including pocket parks
and stream access.
3.4.2 Policy: Private development projects shall be required to
incorporate new sidewalks along streets adjacent to
the project as designated in the Vail Village Master
Plan and/or Recreation Trails Master Plan.
Goal #4
To preserve existing green space areas and expand green space
opportunities.
4A Objective: Improve existing open space areas and create new plazas
with green space and pocket parks. Recognize the
different roles of each type of open space in forming the
overall fabric of the Village.
4.1.2 Policy: The development of new public plazas, and
improvements to existing plazas (public art,
streetscape features, seating areas, etc.), shall be
encouraged to reinforce their roles as attractive
people places.
Goal #5
Increase and improve the capacity, efficiency and aesthetics of the
transportation and circulation system throughout the Village.
5.1 Objective: Meet parking demands with public and private parking
facilities.
5.1.1 Policy: For new development that is located outside of the
Commercial Core 1 Zone District, on -site parking
shall be provided (rather than paying into the
parking fund) to meet any additional parking
demand as required by the Zoning Code.
5.1.5 Policy: Redevelopment projects shall be strongly
encouraged to provide underground or visually
concealed parking.
Goal #6
To insure the continued improvement of the vital operational elements
of the Village.
6.1 Objective: Provide service and delivery facilities for existing and new
development.
Sub -Area #1-8
Sonnenalp(Austria Haus)lSlifer Square
Commercial infill along East Meadow Drive, to provide stronger
edge to street and commercial activity generators to reinforce the
pedestrian loop throughout the Village. Focus of infill is to provide
improvements to pedestrian circulation with a separated walkway,
including buffer, along East Meadow Drive.
Accommodating on -site parking and maintaining the bus route
along Meadow Drive, are two significant constraints that must be
addressed. One additional floor of residential/lodging may also be
accommodated on this site.
V. PROPOSFD TEXT CHANGES
As stated previously, the applicant is proposing to add "time-share estate units, fractional fee
units and time-share license units" as conditional uses to Section 18.26.040, Conditional Uses -
Generally. These uses would be subject to the issuance of a conditional use permit. The
proposed changes are shown as stladed below:
Chapter 18.22 Public Accommodation
18.22.030 Conditional uses
The following conditional uses shall be permitted in the Public Accommodation Zone
District, subject to issuance of a conditional use permit in accordance with the provisions
of Chapter 18.60:
A. Professional and business offices;
B. Hospitals, medical and dental clinics, and medical centers;
C. Private clubs and civic, cultural and fraternal organizations;
D. Ski lifts and tows;
E. Theaters, meeting rooms, and convention facilities;
F. Public or commercial parking facilities or structures;
G. Public transportation terminals;
H. Public utility and public service uses;
I. Public buildings, grounds and facilities;
J. Public or private schools;
K. Public parks and recreational facilities;
L. Churches;
M. Eating, drinking, recreational, or retail establishments not occupying more than 10% of
the total Gross Residential Floor Area of a main structure or structures located on the site
in a non -conforming multi -family dwelling;
N, Major arcade, so long as it does not have any exterior frontage on any public way, street,
walkway, or mall area;
O. Bed and Breakfast as further regulated by Section 18.58.310;
P. Type III EMU as defined in Section 18.57.060;
Q. Type IV EHU as defined in Section 18.57.70;
R. Ttrtta=stars estates aril#s, fractional fee units acid tim8 sii8reltilae units:
VI. WMMARY of DISC
At the October 28, 1996 Planning and Environmental Commission meeting, a worksession was
held to discuss the applicant's proposal to amend the Zoning Code to allow "timeshare" as a
conditional use in the Commercial Core 2 Zone District. As the discussion was a worksession,
staff did not evaluate the proposal, nor provide a formal recommendation. Staff did, however,
identify issues which were discussed with the Planning and Environmental Commission and the
applicant. Each of the issues is described below and a summary of the discussion has been •
provided.
1. PROPERTY MAINTENANCE ISSUES,
ISSUE:
The cost of maintenance may be higher on a time-share project than on wholly -owned units in a
10
condominium building. It has been reported that furniture, carpeting, appliances and other
furnishings must be replaced more often in time-share units. This is especially applicable to
•time-share units which are sold on shorter intervals, The implication is that a higher level of
maintenance and management services must be available on an on -going basis for time-share
projects to insure a high level of quality.
In addition to the additional needs for maintenance on time-share projects, there is also a need to
reserve adequate time when maintenance can occur. Problems potentially occur, when time-
share intervals are sold on a one week basis. By selling fifty-two (52), one week intervals during
the year, there is little or no time for the proper maintenance of a time-share project.
STAFF CONCERN:
Staff has questioned, how time-shares in the Town of Vail could be regulated to insure adequate
and proper maintenance of the project. Staff would not support a proposed time-share project
which utilizes a 52-week interval approach.
SUMMARY:
The State of Colorado has passed legislation which, in part, regulates the maintenance and
upkeep of time-share projects. The regulations were passed to protect consumers from
extremely high maintenance costs of time-share projects. The state regulations require that a
developer of a time-share project establish an escrow account providing a cash reserve for
maintenance and upkeep of the time-share project.
2. AVAILABILITY OF LOCK -OFF UNITS IN A MANAGED RENTAL PROGRAM.
ISSUE:
Time-share units can be designed to accommodate lock -off units. Lock -off units provide the
community benefit of additional 'pillows," and they also provide an additional return on an
investment opportunity for time-share owners. If a time-share owner purchases an interest in a
multiple bedroom unit, and does not desire to utilize all the bedrooms, they can then have the
opportunity of returning the unused bedrooms (lock -offs) to a rental program.
STAFF CONCERN:
Staff would recommend that lock -off units be required as a part of every individual time-share
unit. Additionally, staff recommends that each lock -off unit be managed through a rental program
when not in use. Staff feels that by providing lock -off units, and managing the availability of the
lock -off units in a rental program when not in use, a time-share project can significantly increase
the availability of accommodation units in the Town of Vail.
SUMMARY:
Staff continues to recommend that lock -off units be required as a part of every individual time-
share unit. Some of the Planning and Environmental Commission members felt that it is
important to maintain a quality 'bed base" in the Town to accommodate guests and visitors.
Concerns were expressed by certain members that such a requirement may impede a
developer's ability to construct a time-share project as each development site is different and
requires different mixtures of uses to make a project successful. No consensus was reached.
MINIMUM NUMBER OF BEDROOMS AND SQUARE FOOTAGE REQUIREMENTS FOR
ALL LOCK -OFF UNITS ASSOCIATED WITH TIME-SHARE UNITS.
ISSUE:
In discussing the development of time-share units, staff believes it is important that any time-
share unit proposed in the Town of Vail be a multiple bedroom unit with a minimum square
footage requirement.
11
STAFF CONCERN:
Staff's desire to see multiple bedroom time-share units with a minimum square footage
requirement should increase the availability of lock -off accommodation -type units, thus increasing
the Town's bed base.
SUMMARY:
Staff continues to believe it is important that any new time-share unit in the Town of Vail be a
multiple bedroom unit with a minimum square footage and/or bedroom requirement for lock -off
units. The applicant has stated that one reason the existing Austria Haus is not as successful as
it could be is because the accommodation units are under -sized and outdated. The applicant
has indicated that according to industry standards, an accommodation unit must be at least 375 -
450 square feet in size. Several Planning and Environmental Commission members felt that it
was important for all time-share units to be multiple bedroom units with lock -off type units
attached. These members believed that such units improve the quality of the accommodations
and provide possible incentives for owners to make unused lock -off units available as overnight
accommodations, thus increasing the potential "bed base".
RATIO OF TIME-SH&U UNITS TO ACCOMMQ-DATION UNITS
ISSUE:
The availability of accommodation units has always been a goal of the community. The Public
Accommodation Zone District encourages the construction of accommodation units.
Accommodation units are allowed uses. At this time, the Zoning Code does not restrict the
maximum number of time-share units allowed on a property. Since time-share units are
considered dwelling units, a project with all time-share units could be a possibility.
STAFF CONCERN:
Staff would like to discuss with the Planning and Environmental Commission the merits of
requiring a ratio of accommodation units f4 time-share units. Specifically, staff is recommending
that there be a ratio of accommodation units t4 time-share units established. This would insure
that accommodation -type units would remain available to visitors of the Town of Vail and not
become only time-share units. Staff believes that it is possible to draft review criteria which
address the need for a mix of accommodation units and time-share units on a broad basis.
SUMMARY:
The Planning and Environmental Commission discussed the issue as to whether a ratio of time-
share units to accommodation units should be established. After a lengthy discussion on the
issue, the members felt that such a requirement is not necessary, and in fact, impedes
developers from constructing the best project possible for any given site. The Commission
members further felt that such a ratio would be difficult to establish and would be best
determined when reviewed on a case -by case basis. The members felt that any standard
created must be flexible to accommodate changing trends and needs.
5. REOUIREMENT THAT ALL TIME-SHARE UNITS BE OFFERED THROUGH A RENTAL
PROGRAM WHEN NOT IN USE.
ISSUE:
Like unused lock -off units, a community benefit can be realized through the availability of time-
share units when they are not occupied by the owner. The developer or managing agent of a
time-share project and the time-share unit owner, can realize additional profits through the rental
of time-share units as overnight accommodations.
12
STAFF CONCERN:
Staff believes that unused time-share units should be offered and made available through a
rental program. Specifically, staff would like to discuss the merits of requiring that all time-share
units, when not in use, be made available to the general public. Again, this requirement helps
attain the goal of maintaining a strong bed base whenever possible.
SUMMARY:
Staff continues to believe that a rental program should be established to offer time-share units to
the general public, when not in use. Several Planning and Environmental Commission members
expressed their desire to see the same. It was determined that in order for a rental program to
be successful, the time-share building must include facilities to support the program. For
instance, a front desk, reservation services and other amenities generally associated with hotel -
type accommodations.
INTEGRATION OF TIMESHARE OWNERSHIP WITH WHOLLY-nWNE❑
CONDOMINIUMS THE CONVERSION OF EXISTING WHOLLY -OWNED
CONDOMINIUMS TO TIMESHARE OWNERSHIP.
ISSUE:
As discussed above, the integration of time-share ownership with wholly -owned condominiums
can result in conflicts of use. As mentioned earlier, the type of use associated with time-share
units combined in close proximity with less intensively used, wholly -owned condominiums, may
not be desirable and could possibly pose problems. Again, time-sharing is a vacation -type of
•use, whereas condominiums are usually a residential use, or at least, less intensive vacation -
type of use.
Other resort communities in the country have experienced the conversion of wholly -owned
condominium projects to time-share ownership. For example, in the State of Hawaii, numerous
wholly -owned condominium projects have been converted into interval ownership. In Hawaii, as
a result of the conversion of wholly -owned condominium projects into time-share ownership,
local ordinances have been adopted requiring 100% of the condominium owners to approve of
the proposed conversion to time-share units. This does two things. First, it insures that 100% of
the condominium ownership agrees to the conversion of any or all of the condominium units to
time-share units. Numerous examples of conflicts arising between wholly -owned and time-share
interval ownership have been documented. Specifically, the more intensive vacationing -type of
use of time-share ownership may conflict with the more residential condominium uses. Conflicts
arise out of complaints concerning long hours of "partying, noise and disregard for the quality of
the premises." Secondly, conflicts have arisen over the management and maintenance of the
property. While time-share owners have a sense of ownership and pride in the property they
purchased, they may not be as heavily tied to their investment as a condominium owner.
Therefore, conflicts resulting from management and quality upkeep of property result.
STAFF CONCERN:
Staff would like to discuss with the Planning and Environmental Commission and the applicant,
the potential negative impacts associated with the integration of time-share ownership and
wholly -owned condominiums.
SUMMARY:
The applicant is not proposing to integrate time-share units with wholly -owned condominiums.
Staff's concern is related more to other possible projects developed in Town. The Planning and
Environmental Commission felt that under certain circumstances, time-share units and
condominiums could be integrated. The members believed that integration could occur if a
buffer between uses were proposed. In general, integration of residential uses was not
considered to be desirable by the Commission.
13
MANAGEMENT OF TIMESHARE PROJECTS.
ISSUE:
The management of a quality time-share project is closely related to the high level of
maintenance required for time share. It is in the best interest of the community to insure that
time-share projects are maintained at a high level and in a professional manner. In staff's
opinion, this is most easily accomplished through quality, long-term management of the entire
project. A high quality management program is necessary as the large number of interval
owners involved in a single, time-share project can be extensive. Without proper management,
the overwhelming number of owners of the property could result in future conflicts.
Discussions with a branch broker of a local time-share project, indicate that the most common
form of management of interval ownership projects is a form of Board of Directors. The Board of
Directors functions very similar to a Homeowner's Association or Condominium Association. The
Board, in most instances, is aided by a management company to help in the maintenance and
management of day-to-day operations. As with any association governed by a Board of
Directors, the Directors are elected or appointed by the ownership and represent and are
responsible to the ownership as a whole. The Board of Directors would be responsible for the
overall maintenance and management decisions of the time-share project.
STAFF CONCERN
Staff recommends that in the case of the Austria Haus specifically, the applicant discuss their
proposed management scheme for the project, as the developers are proposing that there would
be a mixture of accommodation units and time-share units. A Board of Directors or management
agency needs to be responsible for the management of both the accommodation units and the
time-share units. Staff believes that conflicts arise when the management of the time-share units
differ from the management of the accommodation units.
SUMMARY:
Sonnenalp Properties, Inc. will be the manager of the commercial and hotel accommodation
units at the Austria Haus. It is the applicant's desire to manage the time-share element as well.
The owners association will be set up initially by the developers, to be managed by Sonnenalp
Properties, Inc. The owners association reserves the right to ultimately determine who manages
the time-share element.
The Planning and Environmental Commission felt that It was important that any project be
maintained and operated at a high level and in a professional manner. The Commission also felt
it is equally important that whomever manages the time-share element must also manage the
accommodation units. This is especially important to ensure that unused time-share units and/or
lock -off units are made available to the general public when not in use.
THE CONVERSION OF THE 37 EXISTING ACCOMMODATION UNITS AT THE
AUSTRIA HAUS TO 20 TIME-ShJARE UNITS / LOCK -OFF UNITS AND 23
ACCOMMODATION UN TJ�S.
ISSUE
There are currently 37 accommodation units within the Austria Haus. At this time, the developer
is proposing to redevelop the Austria Haus to include 20 time-share units sold on a five -week
interval basis, with 20 attached one -bedroom lock -off units and an additional 23 hotel -type
accommodation units.
STAFF CONCERN:
Staff would like to discuss the impacts associated with the reduction in accommodation units
currently existing on the Austria Haus property. While it is possible that 43 of the units in the new
14
Austria Haus could be utilized as accommodation units (includes lock -off units), it is very unlikely
that all 20 lock -off units would be made available. The staff is concerned as to whether this
results in a negative impact that should be mitigated by the developer of the time-share project.
SUMMARY:
This issue was not discussed at great lengths. The Planning and Environmental Commission
members agreed that accommodation units are an important component with regard to Vail's
economic future. The Commission members reserved specific comment on this issue until a
more thorough review of the proposed redevelopment project takes place.
9. POSSIBLE POSITIVE AND NEGATIVE IMPACTS OF TIME SHARE OWNERSHIP IN
THE TOWN OF VAIL.
Positive Impacts of Time -Sharing:
• Activity during the "shoulder seasons" tends to increase due to an increase in year-round
occupancy.
• The attraction of revenue -generating tourists.
• Efficient utilization of resources. This is the "warm beds" concept.
• More pride of ownership with time-share units than with accommodation units.
• Increased levels of occupancy.
• Increased resort exposure due to the extensive number of interval owners.
Negative Impacts of Time -Sharing:
• Some resort areas have experienced poor, distasteful sales practices of sales agents
trying to sell time-share weeks. Because of the number of buyers needed to sell out a
project, an intensive and costly sales program must be developed. The problems
associated with sales generally comes in the area of solicitation of sales on streets, at the
ski base areas, shopping malls, and the use of high-pressure sales tactics.
• Possible conflicts between wholly -owned condominium owners and time-share interval
owners.
• Possible loss of true accommodation units.
• Possible difficulty in collection of property taxes due to the extensive number of owners.
Soumes:
Report: Results of Research on Time-Sharina 6&gu11fions, P. Patten, Comm, Dev. Dept., 1980
The 1995 Worldwide resort Time -Share 1nd4Lt!y
Time -Share Ownership Benefits: Results from a Nafionwide Survev of Time -Share Owners, 1995
15
As a result of the worksession meeting with the Planning and Environmental Commission held on
Monday, October 28, 1996, the staff has identified additional issues which we would like to
discuss with the Planning and Environmental Commission and the applicant. As this is a
worksession to discuss the applicant's proposal to amended the conditional use section of the
Public Accommodation Zone District, rather than the Commercial Core 2 Zone District, staff will
not be providing a formal recommendation at this time. Each of the newly identified issues of the
applicant's amended proposal are identified below:
Additional Conditional U�g Factors
ISSUE:
Staff has considered establishing additional conditional use factors to be used in the
consideration of a proposed conditional use permit request for time-share projects in the Public
Accommodation Zone District. According to discussions with the applicant and Planning and
Environmental Commission, it was felt that time-share projects could be compatible with the
permitted, conditional and accessory uses allowed in the Public Accommodation Zone District
given that certain factors are met. This approach is currently used in the Commercial Core 1
Zone -"District.
STAFF CONCERN:
Staff has evaluated the idea and would propose the following:
18.22.035 Conditional Uses - Factors applicable.
In considering, in accordance with Chapter 18.60, an application for a conditional use
permit for a time-share estate unit, fractional fee unit, and/or a time-share license unit in
the Public Accommodation Zone District, the following development factors shall be
applicable: CEffects
A. of the proposal on the hotel bed base in the core areas;
ffects of the proposal on the{Wem needs of the community as a year-
round resort; tAt4cvrvrwP,"o•.1s,
C. Effects of the proposal of noise, traffic, maintenance, etc, upon adjacent
properties;
The enhancement of the proposal on the nature of Vail as a winter and
summer recreation and vacation community.
community. RMftj jh ft.
Q&ulation of Lock-offUniJ �ierms o �iTens'' hnd Gross Residential Floor Area
ISSUE:
The Town of Vail Municipal Code defines a "dwelling unit",
"any room or group of rooms in a two-family or multiple -family building with kitchen
facilities designed for or used by one family as an independent housekeeping unit. A
dwelling unit in a multiple -family building may include one attached accommodation unit
(lock -off) no larger than one-third (113) of the total floor area of the dwelling.
According to this definition, the staff has interpreted that a time-share estate unit, fractional fee
unit and/or time-share license unit, which includes kitchen facilities, shall be classified as a
dwelling unit. Staff's interpretation is based upon the fact that, in the case of the Austria Haus
proposal, each interval unit will be designed with kitchen facilities for use as an independent
housekeeping unit. According to this interpretation, each time-share unit would be entitled to one
16
lock -off unit. :5Vv fd v V� ? =F � µ" �Q� y0,.., y&r +%5*1
The Town of Vail Municipal Code also provides a definition of an accommodation unit. According
to the definition section of the code, an "accommodation unit" is defined as,
"Any room or group of rooms without kitchen facilities designed for or adapted to
occupancy by guests and accessible from common corridors, walks, or balconies without
passing through another accommodation unit or dwelling unit. Each accommodation unit
shall be counted as one-half (112) of a dwelling unit for purposes of calculating 'allowable
units per acre ".
STAFF CONCERN:
Staff would like to discuss with the Planning and Environmental Commission and the applicant
the merits of applying the existing definitions to a time-share project. Staff feels that the existing
definitions and interpretations provide the necessary controls on density and square footage for
development in the Public Accommodation zone District. Staff further believes that the existing
language provides density incentives for developers to incorporate lock -off units into time-share
projects without impacting a developer's ability to design a project that is sensitive to the site and
is flexible to the demands of each particular development. The existing definitions also allow for
developers and the Town to maintain and enhance the hotel bed base within the community (a
goal identified in numerous planning documents adopted by the Town of Vail).
Subdivision Review ProU5s and Reaistration Reauirements for Time-share Proi=
ISSUE:
At the October 28, worksession meeting, a question was raised as to the procedure for
establishing a time-share project in accordance with the Town's adopted regulations.
Chapter 17.22 of the Town of Vail Municipal Code outlines the procedure for subdividing a time-
share project. A time-share project is subdivided according to the Condominium and Townhouse
Plat procedure. A condominium and townhouse plat is approved by the Zoning Administrator
following the review by the Public Works Department. The plat shall be reviewed under two
general criteria:
A. The Zoning Administrator will check to make sure the buildings and other
improvements were built as per plans approved by the Design Review Board;
B. The Town Engineer will review the survey data for compliance with requirements
found in Section 17.16.130C (final plat requirements/procedures).
Chapters 5.01 and 5.02 of the Town of Vail Municipal Code provide regulations applicable to
time-share estate units, fractional fee units and time-share license units. Chapter 5.01
establishes disclosure requirements for the public offering of time-share projects. The
requirements are intended to protect the consumer from inaccurate or fraudulent representations
of time-share developers.
Chapter 5.02 of the Municipal Code establishes the procedures for registering a time-share
project with the Town of Vail Department of Community Development. Pursuant to Ordinance #
28, Series of 1980, all time-share projects constructed and operated in the Town of Vail must be
registered. The intended purpose of the registration requirement is to insure that any time-share
project offered for sale in the Town of Vail is in compliance with the Town's adopted codes and
policies.
17
Approximate Number of Units in the Town of Vail Directly Impacted by the Proposed
Amendment.
ISSUE: •
At the October 28, worksession meeting a question was raised as to how many units in the Town
of Vail would be directly impacted by the proposed amendment. Staff reviewed all the properties
in the Town currently zoned Public Accommodation, or was a Special Development District with
Public Accommodation as the underlying zoning. According to our research, approximately 736
units could be impacted in 15 buildings. It is important to note that it is not entirely likely that all
736 would be approved to be converted to time-share.
Vlll. STAFF RECOMMENDATION
Since this is a worksession to discuss the proposed text amendments to Section 18.22.030 of
the Municipal Code, and not a request for a formal recommendation from the Planning and
Environmental Commission to the Town Council, staff will not be providing a recommendation at
this time. Staff will, however, provide a recommendation on the applicant's proposal at the time
of final review. Currently, the applicant is scheduled to reappear before the Planning and
Environmental Commission for final review on Monday, November 25, 1996.
�J
0
f:leveryonelpec�memoslcc2exta.o28 18
APPENDIX A
The information in Appendix A is derived from timeshare industry materials submitted by the
Sapplicant to the Community Development Department. The information is intended to provide a
basic understanding of the socio-economic impacts of the timeshare industry as reported by the
American Resort Development Association (ARDA). Complete copies of the source materials
have been attached for reference.
• A recent study which examined industry performance from 1980-1994 revealed that sales
in 1994 reflected an increase of 870% over the $490 million in world-wide sales reported
in 1980..In addition, the 560,000 vacation intervals sold in 1994, reflected a jump of
460% over the interval sales reported in 1980, which were approximately 100,000. At
year end 1994, roughly 4.9 million vacation intervals had been purchased since 1980,
resulting in sales volume of over $36 billion during the 15-year period.
• The U.S. is the leader in the worldwide vacation ownership resort market, with 1,546, or
37.3%, of the resorts, 1,538,000 or 48.9%, of the "owners owning in the area,' and
1,648,000, or 52.4% of the owners of the "owners residing in the area."
• A recent study revealed that 75.3% of the U.S. vacation owners are satisfied with their
vacation purchases, with 76.6% of study participants responding that their expectations at
the time of purchase have been "matched or exceeded," and 75.4% reporting that they
recommend vacation ownership to others. Of the more than 2,000 owners surveyed,
67.5% responded that vacation ownership has had a positive impact on their lives.
• Most important among the motivation factors sited by the owners surveyed in their
decision to purchase vacations were the high standards of the resorts at which they own
and exchange, followed by the flexibility offered through vacation exchange opportunities,
and the value of vacation ownership. Of those surveyed, 83.1 % responded that the
"certainty of quality accommodations" was a "very important' factor in their vacation
ownership purchase. Other motivational factors included good value, location of the
resort, company credibility and savings of dollars on vacation costs.
• According to a February, 1995 telephone survey of 1,000 U.S. households not owning
recreational property, 60.3% of the Americans believed they have a chance of purchasing
recreational property of some type during the next 10 years. The survey results revealed
that over 1/3 of Americans rate their chance of purchasing during the next 10 years as
"about 50/50 or better," compared to 15.5% in 1990 and 25.5% in 1993.
• Americans interested in purchasing recreational property prefer the standard 2-bedroom
unit, sleeping 6, over any other single unit size, by more than a 2:1 margin (45.7%).
• The average vacation owner has purchased 1.7 weeks of vacation ownership. Although
nearly 2/3 (58.8%) of vacation owners own a single week of time-share, the number of
weeks owned increases the longer the average respondent is involved with vacation
ownership.
• The vast majority of vacation owners (73.9%) initially purchase just one interval.
However, more than 114 (26.1 %) of those who first purchase between 1992 and 1994,
now own more than one time-share interval, indicating that many first time purchasers are
purchasing more than one interval at the time of initial purchase.
f:\everyone\pec\memos\cc2exta.c28 19
• While in the local resort area, the average time-share visitor party spends considerably
more than the traditional traveler, averaging expenditures of $1,130.00 during the course
of the entire stay.
• According to more than 2,000 U.S. vacation owners surveyed in 1995, the largest single •
category of expenditure while in the resort area is for food and drink consumed in
restaurants, bars and other hospitality establishments.
• Vacation owners surveyed in 1995 average 6.9 nights in the resort area during their most
recent time-share vacation.
• Vacation owners often extend their stay in the local resort area, by spending additional
nights in another form of accommodation. Of those surveyed in 1995, the average owner
spends an additional 4.7 nights in the local resort area during his/her most recent time-
share vacation by staying in a hotel, with friends or relatives, or elsewhere.
U.S. owners surveyed in 1994 reported that they anticipate returning to the resort where
their time-share interval is located an average of 6.4 times during the next 10 years. By
contrast, those same owners responded that, had they not purchased a time-share in the
resort area, they would have returned to the resort area an average of only 3.2 times.
• Compared to all households in the United States, vacation owners have higher incomes,
are older, and have higher levels of formal education than those of the average American
consumer. As an aggregate profile, the typical vacation owner is an upper middle -
income, middle -age, well educated couple.
• A recent study revealed that the average household income of vacation owners is over
$63,000, having risen dramatically from 1978 when the average income was $23,000.
Over 1/2 of all vacation owners have household incomes between $15,000 and $100,000.
• 86.5% of all vacation owners are couples, and 13.5% are single individuals.
• As of December 31, 1994, 1,648,000 U.S. households owned a vacation. The top three
states in terms of total number of vacation owners are California, New York and Florida.
Sources:
ThP,-1995 Worldwide Resort Time -Shari Industry
Time -Share Purchasers: Who Thev Are. Whv Thev BV, 1995 Edition.
Time -Share Ownership Benefits: Results from a Nationwide Surveyr , 1995
The American Recreational Property Survey: 1995
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f:\everyonelpeclmemos\cc2exSa.o28 20
III F
7 A
MEMORANDUM
• TO: Planning and Environmental Commission r ""
FROM: Department of Community Development
DATE: October 28, 1996
SUBJECT: A worksession to discuss a request to amend Section 18.26.040, Conditional
Uses, of the Vail Municipal Code to add "time-share estate units, fractional fee
units and time-share license units" as a conditional use the Commercial Core 2
Zone District.
Applicant: Sonnenalp Properties, Inc., represented by Gordon Pierce
Planner: George Ruther
1. DESCRIPTION OF THE REQUEST
The applicant, Sonnenalp Properties, Inc., represented by Gordon Pierce, is requesting a
worksession to discuss amending the Town of Vail Municipal Code. The applicant is proposing
that Section 18.26.040 of the Municipal Code be amended to allow time-share estate units,
fractional fee units and time-share license units as conditional uses in the Commercial
Core 2 Zone District. In general, the areas of Town most affected by the proposed amendment
include Lionshead and the Village Center Building, as each of these areas is zoned Commercial
Core 2. The time-share estate units, fractional fee units and time-share license units would be
allowed subject to the issuance of a conditional use permit, pursuant to the provisions of Chapter
18.60 of the Municipal Code.
II. BACKGROUND
The applicant's request relates to a future proposal to redevelop the Austria Haus property. The
Austria Haus is located at 242 East Meadow Drive. The Austria Haus was originally constructed
in the mid-1960's as an inn to accommodate destination skiers. In 1979, the Austria Haus was
purchased by the Faessler family who planned to redevelop the property into the Sonnenalp
Hotel.
In 1984, Ordinance #8 was approved by the Vail Town Council establishing Special Development
District #12. Special Development District #12 adopted an approved development plan for the
redevelopment of the Austria Haus. The approved development plan was never implemented,
and instead, the Austria Haus underwent a remodel. Since the completion of the remodel, the
Austria Haus has served as an annex to the Sonnenalp Bavaria Haus located at 20 Vail Road.
The Austria Haus has 37 hotel rooms (accommodation units) with approximately 75 pillows" and
is operated approximately eight months each year by the Sonnenalp Hotel. There is a small
restaurant and bar in the Austria Haus that serves its guests and a retail outlet on the east end of
the building. The hotel rooms are marginal in size ( 300 sq. ft. average) and lack certain
amenities, by today's accommodation standards.
The current proposal to redevelop the property intends to provide considerably more "pillows"
over a twelve month period, as well as create approximately 10,000 square feet of new
commercial space. The applicant has proposed that a percentage of the project be offered as 1101
timeshare interval ownership units. The applicant has also proposed to accommodate a portion
of the required parking and loading/delivery in an underground parking structure.
According to the Official Zoning Map of the Town of Vail, the applicant's property is currently
zoned Public Accommodation. The Public Accommodation Zone District is intended to provide
sites for lodges and residential accommodations for visitors, together with such public and semi-
public facilities and limited professional offices, medical facilities, private recreation, and related
visitor oriented uses as may be located in the same district. The Public Accommodation District
is intended to provide sites for lodging units to densities not to exceed 25 dwelling units per acre.
The Public Accommodation Zone District does not permit time-share interval units.
interval ownership is currently allowed only in the High Density Multi -Family Zone District
pursuant to Ordinance #8, Series of 1981. There is no vacant property in the High Density Multi -
Family Zone District. All properties currently zoned High Density Multi -Family are developed. In
order for a time-sharing project to be constructed in the High Density Multi -Family Zone District, a
developer would either have to convert an existing condominium or hotel project, or undergo an
entire redevelopment of the property. A third possible alternative for the construction of a time-
sharing project in the Town of Vail, would be to rezone an existing parcel of property from its
current zoning to High Density Multi -Family
Chapter 18.04 of the municipal code provides definitions of time-share estate units, fractional fee
units and time-share license units. According to Sections 18.04.420, 18.04.430 and 18.04.440,
time-share estate units, fractional fee units and time-share license units are defined as follows:
Time -Share estate units: Means either an interval estate or a timespan estate. A timespan
estate is a combination of an undivided interest in a present estate in fee simple in a unit,
the magnitude of the interest having been established by the time of the creation of the
timespan estate either by the project instruments or by the deed conveying the timespan
estate; and an exclusive right to possession and occupancy of the unit during an annually
recurring period of time defined and established by a recorded schedule set forth or
referred to in the deed conveying the timespan estate. Additionally, an interval estate is
an estate for four years terminating on a date certain, during which years titled to a
timeshare unit circulates among the interval owners in accordance with a fixed schedule;
vesting in each such interval owner in turn for a period of time established by the said
schedule, with the series thus established recurring annually until the arrival of the date
certain.
Fractional fee units: Is defined as a tenancy in common interest in improved real property,
including condominiums, created or held by persons, partnerships, corporations, or joint
ventures or similar entities, wherein the tenants in common have formerly arranged by
oral or written agreement or understanding, either recorded or unrecorded allowing for the •
use and occupancy of the property by one or more co -tenants to the exclusion of one or
more co -tenants during any period, whether annually reoccurring or not which is binding
upon any assignee or future owner of a fractional fee interest or if said agreement
continues to be in any way binding or affective upon any co -tenant for the sale of any
interest in the property.
Time-share license units: Shall be defined as a contractual right to exclusive occupancy of
specified premises. Provided that the occupancy of the premise is divided into five or
r more separate time periods extending over a term of more than two years. The premises
may consist of one parcel, unit or dwelling, or any of several parcels, units or dwellings
identified at the time the license is created to be identified later. No timeshare is a
timeshare license if it meets the definition of interval estate, timeshare or timespan
estate.
III. HISTORY OF TIME-SHARING IN VAIL
The State of Colorado has adopted regulations regulating the sale of time-shares. For the most
part, the regulations adopted by the State of Colorado are concerned with financial disclosures,
regulation of sales practices and disclosures, regulation of sales practices and classification of
time-sharing as a subdivision of property. The regulations adopted by the State of Colorado are
intended more to protect the consumer, than as regulations designed to have impacts on the
community level. The State has granted the authority for local governments to adopt ordinances
intended to protect the health, safety, and general welfare of the community, which includes time-
share projects.
On July 15, 1980, the Vail Town Council adopted five ordinances to regulate time-sharing
projects in the Town of Vail. A summary of each of the ordinances is listed below:
• Ordinance # 25, Series of 1980, an ordinance amending Chapter 17 (Subdivision
Regulations) of the Town of Vail Municipal Code, providing a new definition for the term
subdivision; and setting forth prohibited and unlawful acts and remedies for violations of
this ordinance, and amending the procedure for appealing a decision of the Planning and
Environmental Commission to the Town Council. In the opinion of the then Vail Town
Council, the present subdivision regulations were not sufficient to deal with the problem
presented by time-sharing projects and therefore, the procedure for subdividing property
associated with time-sharing projects should be amended. Ordinance #25 further went
on to require that time-sharing projects go through the subdivision review process. Prior
to the adoption of Ordinance #25, Series of 1980, the Town of Vail did not have any
regulations requiring that time-sharing projects be reviewed through the subdivision
process.
• Ordinance # 26, Series of 1980, providing for the addition of new conditional uses in
certain zone districts. Ordinance #26 was established to protect the balance between
accommodations for visitors to the Town, Vail residents and seasonal employees from
the unregulated development of time-sharing projects. It was the opinion of the then Vail
Town Council that the zoning regulations in place in 1980 did not sufficiently address the
problems presented by time-sharing. The ordinance amended Title 18 of the Municipal
Code allowing time-share estate units, fractional fee units and time-share license units in
the High Density Multi -Family, Public Accommodation, Commercial Core 1 and
• Commercial Core 2 Zone Districts, subject to the issuance of a conditional use permit.
• Ordinance # 27, Series of 1980, an ordinance providing for certain disclosure
requirements for time-sharing projects; providing for public offering statements and
setting forth requirements for such offering statements: for the escrowing of deposits or
reservations of a time-share unit; and setting forth remedies for violations of said
ordinance. According to the minutes of the July 15, 1980 Vail Town Council meeting, the
Council had determined that the health, safety and welfare of the inhabitants of the Town
of Vail would best be served by requiring the disclosure of certain facts and information
relating to time-sharing projects, and to the perspective purchasers of time-share units.
The amendment established disclosure requirements when offering time-share project
sales and established a minimum amount of information that the developer must disclose•
in a public offering statement.
Ordinance # 28, Series of 1980, an ordinance providing for registration of time-share
projects with the Department of Community Development of the Town of Vail; the
requirements for applications for registration of said units; remedies for violation of this
ordinance and standards for the revocation of such registration. The Vail Town Council
adopted Ordinance # 28 resolving that the Council had determined that the existing
ordinances and regulations of the Town were insufficient to cope with the problems
presented by time-sharing and that the registration of time-sharing units is necessary to
protect and preserve the public health, safety and welfare of the inhabitants of the
community.
Ordinance # 29, Series of 1980, an ordinance defining time-share broker and time-share
salesman: providing that any person, firm, partnership, association or corporation that
engages in the business or capacity of time-share broker or time-share salesman, must
obtain a license from the Town Clerk; setting forth the requirements for the application for
such license; providing for the display of such license, license fees and setting forth
standards and procedures for the suspension or revocation of such license. Similar to
the other ordinances relating to time-sharing projects in the Town of Vail, the then Town
Council found that these additional regulations were deemed necessary to protect and
preserve the health, safety and welfare of the inhabitants of the Town of Vail and that
time-share brokers and time-share salesman be licensed by the Town of Vail.
On February 3, 1981, the Vail Town Council adopted Ordinance #8, Series of 1981,
amending Ordinance #26, Series of 1980, providing for the removal of time-sharing from
the conditional use section of the Public Accommodation, Commercial Core 1 and
Commercial Core 2 Zone Districts. It was the then Vail Town Council's opinion that
permitting the conversion and development of time-sharing projects in said zone districts
would upset the balance between accommodations for visitors, Vail residents and
seasonal employees and that the amendment was necessary to protect the health, safety
and welfare of the inhabitants of the community.
IV. CONFORMITY WITH THE TOWN'S RELEVANT PLANNING DOCUMENTS
In considering the proposed text amendment to the Zoning Code, to allow time-share in
Commercial Core 2 as a conditional use, staff reviewed several relevant planning documents.
Specifically, staff reviewed the Municipal Code, the Goals and Objectives stated in the Vail Land
Use Plan and the Vail Village Master Plan,
VAIL MUNICIPAL CODE 0
Section 18.26,010 of the Vail Municipal Code, identifies the purpose of the Commercial Core 2
Zone District. According to the purpose statement,
"The Commercial Core 2 Zone District is intended to provide sites for a mixture of
multiple dwellings, lodges and commercial establishments in a clustered, unified
development. Commercial Core 2 District in accordance with the Vail Lionshead
Urban Design Guide Plan and Design Considerations is intended to insure
adequate light, air, open space and other amenities appropriate to the permitted
types of buildings and uses and to maintain the desirable qualities of the district
• by establishing appropriate site development standards. (Ordinance 21(1980) (2)
(part).)"
VAIL LAND USE PLAN
Chapter 11 of the Vail Land Use Plan identifies goals and policies for land use within the Town of
Vail. The goals articulated by the Vail land Use Plan reflect the desires of the citizenry. The
goals are to be used as adopted policy guidelines in the review process for new development
proposals. Staff has identified the following goals (listed below), as being relevant to the
applicant's proposal:
1. General Growth / Development
.11 Vail should continue to grow in a controlled environment,
maintaining a balance between residential, commercial and
recreational uses to serve both the visitor and the permanent
resident.
The quality of development should be maintained and upgraded
whenever possible.
1_4 The original theme of the old Village core should be carried into
new development in the Village core through continued
implementation of the Urban Design Guide Plan.
1.12 Vail should accommodate most of the additional growth in existing
developed areas (infill areas).
2. Skier J Tourist Concerns
3. Commercial
2_1 The community should emphasize its role as a destination resort
while accommodating day skiers.
�? The ski area owner, the business community and the Town leaders
should work together closely to make existing facilities and the
Town function more efficiently.
2A The community should improve summer recreational and cultural
opportunities to encourage summer tourism.
The hotel bedbase should be preserved and used more efficiently.
The Village and Lionshead areas are the best location for hotels to
serve the future needs of destination skiers.
3.4 Commercial growth should be concentrated in existing commercial
areas to accommodate both local and visitor needs.
5
4. Village Core / Lionshead
Residential
4.2 Increased density in the core areas is acceptable so long as the .
existing character of each area is preserved through the
implementation of the Urban Design Guide Plan and the Vail
Village Master Plan.
5, Quality time-share units should be accommodated to help keep
occupancy rates up.
6. Additional goals related to other elements of the comprehensive plan.
Economic Development
The Town of Vail should consider developing some type of mechanism to control
tenant mix, so that a balance between tourist and convenient type of commercial
uses is maintained.
On January 16, 1990, the Vail Town Council adopted the Vail Village Master Plan. The plan is
intended to guide the Town in developing land use laws and policies for coordinating
development by the public and private sectors in the Vail Village area and in implementing .
community goals for public improvements. It is intended to result in ordinances and policies that
will preserve and improve the unified and attractive appearance of Vail Village. Most importantly,
the Master Plan shall serve as a guide to the staff, review boards, and Town Council in analyzing
future proposals for development in Vail Village and in legislating effective ordinances to deal
with such development. For the citizens and guests of Vail, the Master Plan provides a clearly
defined set of goals and objectives outlining how the Village will grow in the future. The Vail
Village Master Plan is intended to be consistent with the Vail Village Urban Design Guide Plan,
and along with the Guide Plan it underscores the importance of the relationship between the built
environment and public spaces. The Vail Village Master Plan has been adopted as an element
of the Vail Comprehensive Plan.
Goals for Vail Village are summarized in six major goal statements. The goal statements are
designed to establish a framework, or direction, for the future growth of the Village. A series of
objectives outlines specific steps that can be taken towards achieving each stated goal. Policy
statemdnts have been developed to guide the Town's decision making in achieving each of the
stated objectives, whether it be through the review of private sector development proposals or in
implementing capital improvement projects.
Goal #1 Encourage high quality redevelopment while preserving the unique
architectural scale of the Village In order to sustain its sense of
community and identity.
1.2 Objective: Encourage the upgrading and redevelopment of
residential and commercial facilities.
1.2.1 Policy: Additional development may be allowed as
identified by the action plan as is consistent
with the Vail Village Master Plan and Urban
Design Guide Plan.
Goal #2 To foster a strong tourist industry and promote year-round economic
health and viability for the Village and for the community as a whole.
2.1 Objective: Recognize the variety of land uses found in the 10 sub-
areas throughout the Village and allow for development that
is compatible with these established land use patterns.
2.1.1 Policy: The Zoning Code and development review criteria
shall be consistent with the overall goals and
objectives of the Vail Village Master Plan.
2.3 Objective: Increase the number of residential units available for short-
term, overnight accommodations.
2.3.1 Policy: The development of short-term accommodation
units is strongly encouraged. Residential units that
are developed above existing density levels are
required to be designed or managed in a manner
• that makes them available for short-term overnight
rental.
2.5 Objective: Encourage the continued upgrading, renovation and
maintenance of existing lodging and commercial facilities to
better serve the needs of our guests.
V. PROPOSED TEXT CHANGES_
As stated previously, the applicant is proposing to add "time-share estate units, fractional fee
units and time-share license units" as conditional uses to Section 18.26.040, Conditional Uses -
Generally. These uses would be subject to the issuance of a conditional use permit. The
proposed changes are shown as sftded below:
Chapter 18.26 Commercial Core 2
18.26.040 Conditional uses -Generally
The following conditional uses shall be permitted, subject to issuance of a conditional use
permit in accordance with the provisions of Chapter 18.80:
A. Ski lifts and tows;
B. Public utility and public service uses;
C. Public buildings, grounds, and facilities;
D. Public park and recreation facilities;
E. Theaters, meeting rooms and convention facilities;
P. Coin -operated laundries;
7
G. Commercial storage -as long as it is at basement level and does not have any exterior
frontage on any public way, street, walkway or mall area;
N. Bed and breakfast as further regulated by Section 18.58.310.
I. Television stations -as long as the production room/studio is visible from the street or
pedestrian mall and that the television station be "cable -cast' only, requiring no additional
antennas.
Jitme share a tour If )vaetictt7�J.ft�e tfgi�s, �tYtf tlrt shire if-r tai 'Its
(Ord.23(1990) § 1: Ord. 31(1989) § 9: Ord. 21(1983) § 1: Ord. 8(1981) § 2(part): Ord. 50(1978)
§ 8: Ord. 8(1973) § 9.400.)
0301�•►�
As this a worksession to discuss the applicant's proposal, staff will not evaluate the proposal at
this time. Staff has, however, identified issues which we would like to discuss with the Planning
and Environmental Commission and the applicant. Each of the issues is described below.
PRQPERTY MAINTENANCE ISSUES.
The cost of maintenance may be higher on a time-sharing project than on wholly -owned units in
a condominium building. It has been reported that furniture, carpeting, appliances and other
furnishings must be replaced more often in time-sharing units. This is especially applicable to
time-share units which are sold on shorter intervals. The implication is that a higher level of
maintenance and management services must be available on an on -going basis for time-sharing
projects to insure a high level of quality.
In addition to the additional needs for maintenance on time-sharing projects, there is also a need
to reserve adequate time when maintenance can occur, Problems potentially occur, when time-
share intervals are sold on a one week basis. By selling fifty-two (52), one week intervals during
the year, there is little or no time for the proper maintenance of a time-share project.
Staff would like to discuss with the Planning and Environmental Commission and the applicant,
how time-shares in the Town of Vail could be regulated to insure adequate and proper
maintenance of the project.
2. Al AILABiLITY OF LOCK -OFF UNITS IN A MANAGED RENTAL PROGRAM,
Time-share units can be designed to accommodate lock -off units. Staff would recommend that
lock -off -units be required as a part of every individual time-share unit. Additionally, staff
recommends that each lock -off unit be managed through a rental program when not in use. Staff
feels that by providing lock -off units, and managing the availability of the lock -off units in a rental
program when not in use, can significantly increase the availability of accommodation units in the
Town of Vail. While lock -off units provide the community benefit of additional "pillows," they also
provide an additional return on an investment opportunity for time-share owners. If a time-share .
owner purchases an interest in a multiple bedroom unit, and does not desire to utilize all the
bedrooms, they can then have the opportunity of returning the unused bedrooms (lock -offs) to a
rental program.
MINIMUM NUMBER OF BEDROOMS AND SQUARE FOOTAGE REQUIREMENTS FOFJ
ALL LOCK -OFF UNITS ASSOCIATED WITH TIME-SHARE UNITS.
In discussing the development of time-share units, staff thought it was important that any time-
share unit proposed in the Town of Vail be a multiple bedroom unit with a minimum square
footage requirement. Staff's desire to see multiple bedroom time-share units with a minimum
square footage requirement increases the availability of lock -off accommodation -type units, thus
increasing the Town's bed base.
RATIO OF TIME-SHARE UNITS TO ACCOMMODATION UNITS / LOCK -OFFS.
The availability of accommodation units has always been a goal of the community. The
Commercial Core 2 Zone District encourages either, by right, or subject to the issuance of a
conditional use permit, the construction of accommodation units. Accommodation units are
allowed uses on all floor levels in the Commercial Core 2 Zone District, with the exception of the
garden level. Staff would like to discuss with the Planning and Environmental Commission the
merits of requiring a ratio of accommodation units/lock-off units IQ time-share units. Specifically,
staff is recommending that there be a ratio of accommodation units/lock-off units IQ time-share
units established. This would insure that accommodation -type units would remain available to
visitors of the Town of Vail and not become only time-share units.
5. REQUIREMENTTHAT ALL TIME-SHARE UNITS BE OFFERED THROUGH A RENTAL
PROGRAM WHEN NOT IN USE.
• Like unused lock -off units, staff believes that unused time-share units should be offered and
made available through a rental program. Specifically, staff would like to discuss the merits of
requiring that all time-share units, when not in use, be made available to the general public.
Again, this requirement helps attain the goal of maintaining a strong bed base whenever
possible. A true community benefit can be realized through the additional availability of units,
and again, the developer or managing agent of a time-share project realizes additional profits
through the rental of time-share units as overnight accommodations.
THE CONVERSION OF THE 37 EXISTING ACCOMMODATION UNITS AT THE
AUSTRIA HAUS TO 20 TIME-SHARE UNITS / LOCK -OFF UNITS AND 23
ACCOMMODATION UNITS..
There are currently 37 accommodation units within the Austria Haus. At this time, the developer
is proposing to redevelop the Austria Haus to possibly include 20 time-share units sold on an
interval basis, with 20 attached one -bedroom lock -off units and an additional 23 hotel -type
accommodation units. Staff would like to discuss the impacts associated with the reduction in
accommodation units currently existing on the Austria Haus property. While it is possible that 43
of the units in the new Austria Haus could be utilized as accommodation units (includes lock -off
units), it is very unlikely that all 20 lock -off units would be made available. The staff is concerned
.as to whether this results in a negative impact that should be mitigated by the developer of the
time-share project.
7. TLiE (,ONVERSION g EXISTING WHOLLY -OWNED CONDOMINIUMS TO
TIMESHARE OWNER HIP..
Other resort communities in the country have experienced the conversion of wholly -owned
condominium projects to time-share ownership. For example, in the state of Hawaii, numerous
wholly -owned condominium projects have been converted into interval ownership. In Hawaii, as
a result of the conversion of wholly -owned condominium projects into time-share ownership,
local ordinances have been adopted requiring 100% of the condominium owners approve of the
proposed conversion to time-share units. This does two things. First, it insures that 100% of the
condominium ownership agrees to the conversion of any or all of the condominium units. to time-
share units. Numerous examples of conflicts arising between wholly -owned and time-share
interval ownership have been documented. Specifically, the more intensive vacationing -type of
use of time-share ownership may conflict with the more residential condominium uses. Conflicts
arise out of complaints concerning long hours of "partying, noise and disregard for the quality of
the premises." Secondly, conflicts have arisen over the management and maintenance of the
property. While time-share owners have a sense of ownership and pride in the property they
purchased, they may not be as heavily tied to their investment as a condominium owner.
Therefore, conflicts resulting from management and quality upkeep of property result.
[NTEGRATION OF TIMESHABE OWNERSHIP WITH WHOLLY -OWNED
CONDOMINIUMS.
As discussed above, the integration of time-share ownership with wholly -owned condominiums
can result in conflicts of use. As mentioned earlier, the type of use associated with time-share •
combined inclose proximity with less intensively used, wholly -owned condominiums, may not be
desirable and could possibly pose problems. Again, time-sharing is a vacation -type of use,
whereas condominiums are usually a residential use, or at least, less intensive vacation -type of
use. Again, staff would like to discuss with the Planning and Environmental Commission and the
applicant, the potential negative impacts associated with the integration of time-share ownership
and wholly -owned condominiums.
MANAGEMENT OF TIMESHARE PROJECTS,,
The management of a quality time-share project is closely related to the high level of
maintenance required for time share. It is in the best interest of the community to insure that
time-share projects are maintained at a high level and in a professional manner. in staffs
opinion, this is most easily accomplished through quality, long-term management of the entire
project. A high quality management program is necessary as the large number of interval
ownersinvolved in a single, time-share project can be extensive. Without proper management,
the overwhelming number of owners of the property could result in future conflicts.
Discussions with a branch broker of a local time-share project, indicate that the most common
form of management of interval ownership projects is a form of Board of Directors. The Board of
Directors functions very similar to a Homeowner's Association or Condominium Association. The
Board, in most instances, is aided by a management company to help in the maintenance and
management of day-to-day operations. As with any association governed by a Board of
Directors, the Directors are elected or appointed by the ownership and represent and are
responsible to the ownership as a whole. The Board of Directors would be responsible for the
overall maintenance and management decisions of the time-share project.
10
Staff recommends that in the case of the Austria Haus specifically, the applicant discuss their
proposed management scheme for the project. In the case of a project like the proposed Austria
• Haus, there would be a mixture of accommodation units and time-share units. A Board of
Directors or management agency needs to be responsible for the management of both the
accommodation units and the time-share units. Staff believes that conflicts arise when the
management of the time-share units differ from the management of the accommodation units.
11, POSSIBLE POSITIVE AND NEGATIVE IMPACTS OF TIME SHARE OWNERSHIP IN
THE TOWN OF \AIL.
Positive Impacts of Time -Sharing:
• Activity during the "shoulder seasons" tends to increase due to an increase in year-round
occupancy.
The attraction of revenue -generating tourists.
• Efficient utilization of resources. This is the "warm beds" concept.
• More pride of ownership with timeshare units than with accommodation units.
• Increased levels of occupancy.
• Increased resort exposure due to the extensive number of interval owners.
Negative Impacts of Time -Sharing:
• Some resort areas have experienced poor, distasteful sales practices of sales agents
trying to sell time-share weeks. Because of the number of buyers needed to sell out a
project, an intensive and costly sales program must be developed. The problems
associated with sales generally comes in the area of solicitation of sales on streets, at the
ski base areas, shopping malls, and the use of high-pressure sales tactics.
• Possible conflicts between wholly -owned condominium owners and time-share interval
owners.
• Possible loss of true accommodation units.
• Possible difficulty in collection of property taxes due to the extensive number of owners.
Sources:
Report: Resufts of Research on Time-Sharina Regulations, P. Patten, Comm. Dev. Dept, 1980
The 1995 Worldwide ResprfTime-Share lndusrry
opTime -Share Ownership Benefits: Results from a Nationwide Survev of Time -Share Owners, 1995
VII. STAFF RECOMMENDATION
Since this is a worksession to discuss the proposed text amendments to Section 18.26.040 of
the Municipal Code, and not a request for a formal recommendation from the Planning
Commission to the Town Council, staff will not be providing a recommendation at this time. Staff
will, however, provide a recommendation on the applicant's proposal at the time of final review.
Currently, the applicant is scheduled to reappear before the Planning and Environmental
Commission for final review on Monday, November 11, 1996.
11
APPENDIX A
The information in Appendix A is derived from timeshare industry materials submitted by the
applicant to the Community Development Department. The information is intended to provide a •
basic understanding of the sccio-economic impacts of the timeshare industry as reported by the
American Resort Development Association (ARDA). Complete copies of the source materials
have been attached for reference.
• A recent study which examined industry performance from 1980-1994 revealed that sales
in 1994 reflected an increase of 870% over the $490 million in world-wide sales reported
in 1980. In addition, the 560,000 vacation intervals sold in 1994, reflected a jump of
460% over the interval sales reported in 1980, which were approximately 100,000. At
year end 1994, roughly 4.9 million vacation intervals had been purchased since 1980,
resulting in sales volume of over $36 billion during the 15-year period.
• The U.S. is the leader in the worldwide vacation ownership resort market, with 1,546, or
37.3%, of the resorts, 1,538,000 or 48.9%, of the "owners owning in the area," and
1,648,000, or 52.4% of the owners of the 'owners residing in the area."
• A recent study revealed that 75.3% of the U.S. vacation owners are satisfied with their
vacation purchases, with 76.6% of study participants responding that their expectations at
the time of purchase have been "matched or exceeded," and 75.4% reporting that they
recommend vacation ownership to others. Of the more than 2,000 owners surveyed, .
67.5% responded that vacation ownership has had a positive Impact on their lives.
• Most important among the motivation factors sited by the owners surveyed in their
decision to purchase vacations were the high standards of the resorts at which they own
and exchange, followed by the flexibility offered through vacation exchange opportunities,
and the value of vacation ownership. Of those surveyed, 83.1% responded that the
"certainty of quality accommodations" was a "very important' factor in their vacation
ownership purchase. Other motivational factors included good value, location of the
resort, company credibility and savings of dollars on vacation costs.
• According to a February, 1995 telephone survey of 1,000 U.S. households not owning
recreational property, 60.3% of the Americans believed they have a chance of purchasing
recreational property of some type during the next 10 years. The surrey results revealed
that over 1/3 of Americans rate their chance of purchasing during the next 10 years as
"about 50/50 or better," compared to 15.5% in 1990 and 25.5% in 1993.
• Americans interested in purchasing recreational property prefer the standard 2-bedroom
unit, sleeping 6, over any other single unit size, by more than a 2:1 margin (45.7%).
• The average vacation owner has purchased 1.7 weeks of vacation ownership. Although
nearly 2/3 (58.8%) of vacation owners own a single week of time-share, the number of 45
weeks owned increases the longer the average respondent is involved with vacation
ownership.
• The vast majority of vacation owners (73.9%) initially purchase just one interval.
However, more than 1/4 (26.1%) of those who first purchase between 1992 and 1994,
now own more than one time-share interval, indicating that many first time purchasers are
purchasing more than one interval at the time of initial purchase.
f:\averyone\pec\memos\cc2exta.o28 12
0
• While in the local resort area, the average time-share visitor party spends considerably
more than the traditional traveler, averaging expenditures of $1,130.00 during the course
of the entire stay.
• According to more than 2,000 U.S. vacation owners surveyed in 1995, the largest single
category of expenditure while in the resort area is for food and drink consumed in
restaurants, bars and other hospitality establishments.
• Vacation owners surveyed in 1995 average 6.9 nights in the resort area during their most
recent time-share vacation.
• Vacation owners often extend their stay in the local resort area, by spending additional
nights in another form of accommodation. Of those surveyed in 1995, the average owner
spends an additional 4.7 nights in the local resort area during his/her most recent time-
share vacation by staying in a hotel, with friends or relatives, or elsewhere.
• U.B. owners surveyed in 1994 reported that they anticipate returning to the resort where
their time-share interval is located an average of 6.4 times during the next 10 years. By
contrast, those same owners responded that, had they not purchased a time-share in the
resort area, they would have returned to the resort area an average of only 3.2 times.
• Compared to all households in the United States, vacation owners have higher incomes,
are older, and have higher levels of formal education than those of the average American
consumer. As an aggregate profile, the typical vacation owner is an upper middle -
income, middle -age, well educated couple.
• A recent study revealed that the average household income of vacation owners is over
$63,000, having risen dramatically from 1978 when the average income was $23,000.
Over 1/2 of all vacation owners have household incomes between $15,000 and $100,000.
• 86.5% of all vacation owners are couples, and 13.5% are single individuals.
• As of December 31, 1994, 1,648,000 U.S. households owned a vacation. The top three
states in terms of total number of vacation owners are California, New York and Florida.
Sources'
The 1995 Worldwide Resort Time -Share Industry
Time -Share Purchasers: Who Thev Are. Whv Thev But; 1995 Edition.
Time -Share Ownership Benefits: Results from a Nationwide Survey of Time -Share Owners, 1995
The American Recreational Property Survey: 1995
f:\everyonelpec\memos\cc2exta.o28 13
TIMESHARE INFORMATION SHEET
Existing Timeshare Prniects in Vail fe
I . Apollo Park
2. The Wren
3. Vail Run
Ercjstpg Timeshare
Proiects in Ea2le CouM
I .
St. lames Place
2.
Post Montane
3.
Park Plaza
4.
Christie Lodge (Avon)
5.
Streamside at Vail
Existing Projects
1.
Zoned HDMF
Evergreen Lodge
11,
Riverhouse
2.
Marriot Vail Mountain Resort
12,
Edelweiss
3.
Lodge at Lionshead
13.
Riva Ridge North & South
4.
Vail Spa
14.
All Seasons
5.
Solar Vail Condominiums
15.
Booth Creek Townhomes
6,
Vail International
16,
The Wren
7.
Skaal House
17.
Apollo Park
8.
Scorpio
18,
(Any SDD w/HDMP Zoning)
9.
Alphorn
10,
Meadow Vail Place
Esisitng hrgjects
1.
Zoned CC2
Enzian/L'Ostello
8.
Vantage Point
-2.
Antler's
9.
Lion's Pride
3.
Lion's Square Lodge
10,
Lifthouse Lodge
4.
Lion's Square North
11.
Vail 21
5.
Montaneros
12,
Lionshead Center
6.
Landmark Lodge
13.
Treetops Condominiums
7.
West Winds Condominiums
14.
Village Center Condominiums
40
AUSTRIA HAUS CLUB OVERVIEW
1. What is the Austria Haus Club?
The Austria Haus Club will be a member -owned resort club comprised of spacious two
and three bedroom residences and associated club facilities. These Club facilities are
planned to include lobby, front desk and concierge areas, library/lounge room, exercise
and function rooms, ski equipment storage facilities, outdoor sitting area with Jacuzzi,
and on -site underground parking. Additionally, access to the Sonnenalp Country Club
and Spa facilities will be included along with other membership benefits.
II. How will membership in the Club be evidenced?,
Membership will be evidenced by a real estate deed which is recorded and is
guaranteed by a title insurance policy. Each member owns an undivided interest (UDI)
in one of the Club's residence units and the associated club facilities and common
areas.
III. How manv members will be allowed to ioin?
An undivided deeded interest to a portion of the Club units and a commensurate
portion of the common areas will be conveyed to a total of nine members for each Club
residence. The total number of memberships will be dependent upon the final number
of permitted club units.
Each membership will carry with it the right to priority use of lodging times. In total,
45 weeks of the year will be dedicated to priority use by Club members; the remaining
weeks will be available for rental to the general public and for maintenance of the
residences. Priority lodging nights not used by members will also be available for
rental to the general public.
IV. How often can owners use their Club?
Each member will have foil access throughout the year to all Club facilities and all
residences of their type category, subject to established reservation policies.
V. How will an owner reserve usage?
Members reserve their winter vacations in the fall and their summer vacations in the
spring. Short -notice stays can be reserved on a "space -available" basis.
AUSTRIA HAUS CLUB OVERVIEW
VI. Will an owner always occuov the same unit?
SNo. Members have equal access to all Club residences of their membership type.
Members may request a specific residence unit and this request will be granted if
possible, based on established reservation policies and priorities.
VII.How will the rental vroeratn work?
All residence units not reserved by a member will be made available for nightly rental
to the general public. This includes full residence units as well as non -utilized lock -off
portions of member reserved residences.
VIII.How will the memberships be sold?.
The Club resort marketing programs will be similar in content and character to those
utilized in selling high end condominiums in Vail.
• IX. Is the Austria Haus Club a timeshare development?
No. Resort club membership is very similar to membership in a prestigious equity golf
country club, except members_ reserve lodging rather than tee times.
Resort club membership differs markedly from traditional timeshare or interval
ownership where large numbers of prospective buyers must be generated to produce the
sale of a specific week of vacation time in a specific lodging unit, or the right to use a
specific lodging unit for a set number of years. Resort club memberships are very
limited, are sold to an exclusive number of upscale buyers, and offer as a primary
benefit the prestige and privilege of membership.
High -end resort clubs represent a separate and distinct market segment from what are
commonly known as vacation timeshare properties. Although both represent a form of
interval ownership, resort clubs merge the benefits of second home ownership with
traditional membership club benefits. A limited number of members are invited to
make a substantially larger investment in a facility that includes all the features,
isamenities, services, and benefits of a resort club. They are owners in a single club
property in which they have a vested interest in the value, the upkeep, and the financial
health and viability.
AUSTRIA HAUS CLUB OVERVIEW
X. Are there UDI clubs at other resort areas?
. Yes. Club resorts are becoming an increasingly popular form of resort hotel structure.
Existing club resorts include the highly acclaimed Deer Valley Club at Deer Valley
Resort in Utah, Franz Klammer Lodge in Telluride, Ships Watch in Duck, NC, The
Melrose Club near Hilton Head, SC, as well as a growing number of new properties
throughout the United States.
Each of these clubs is organized somewhat differently and their bylaws permit varying
types of usage.
Xl. Whv was the concept developed?
Club resorts are one of the few economically viable methods currently available to
finance, construct, and, over time, maintain a high -quality new mountain hotel
property.
Membership club services and amenities combined with first class resort
• accommodations are also a logical product for the luxury resort market: the blended
product meets the demands of the sophisticated leisure traveler/second home owner and
at the same time addresses the needs and concerns of the community in which it
operates.
The Austria Haus Club concept is designed to:
• Provide more convenience, services, and amenities than are provided by an
equally luxurious condominium development;
• Provide an economically feasible means of financing the rejuvenation and
maintenance of the guest accommodation inventory on the East Meadow Drive
property;
• Make available significantly more accommodations in the heart of Vail by
replacing 37 very small existing guest accommodation units with a new
combined total of 68;
• Ensure the highest year-round occupancy by providing room rental
• opportunities during times when owners are not making full use of the Club;
• Add quality commercial property, aesthetic public space, and underground
parking in the Vail village core;
3