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HomeMy WebLinkAbout2005-05-17 Town Council MinutesW 0 vaii i own c:ouncu tvening Meeting Minutes Tuesday, May 17, 2005 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council convened at approximately 6:00 p.m. on Tuesday, May 17, 2005. Council Members present: Rod Slifer, Mayor Dick Cleveland, Mayor Pro-Tem* Diana Donovan Farrow Hitt Kent Logan Kim Ruotolo Greg Moffet Staff Members Present: Pam Brandmeyer, Asst. Town Manager Matt Mire, Town Attorney *Arrived at approximately 6:50 p.m. The first item on the agenda was Citizen Input. There was none. The second item on the agenda was the Consent Agenda, approval of 04.5.05 and 04.19.05 Evening Session Minutes. Moffet moved and Ruotolo seconded a motion to approve the minutes without amendments. The motion passed unanimously, 6-0 The third item on the agenda was a construction update. Public Works Director Greg Hall reported Vail Road utility work was complete with work starting May 25 on East Meadow Drive. Hall then reported construction in LionsHead had begun and the clock tower was scheduled to come down May 18. He then announced the Children's Fountain was beginning to be replaced and a new vault for a potential fountain in Seibert Circle was being installed. Hall concluded by stating the Vail Founders Park and Parking Garage project had been delayed due to soil differentiation and Forest Road would be closed for a time beginning May 23 due to utility work. The fourth item on the agenda was the Local Licensing Authority (the "LLA") Appointments. There were three vacancies on the LLA. The town received three applications for the vacancies. Moffet moved to appoint Bill Bishop, Bob Louthan and Kevin Foley to the LLA. Logan seconded the motion. The motion passed unanimously, 6-0. All three members were appointed to two-year terms through May, 2007. All LLA members must be citizens of the United States, qualified electors of the town, and have resided in the town for not less than two years preceding appointment, and shall have no direct financial interest in any license to sell alcoholic beverages or any location having any such license. Duties of the five -member board include review of all Town of Vail liquor license applications. Moffet thanked former LLA member Dave Chapin for eight 1 years of service on the board. Chapin was term limited, subsequently not reapplying for the position, where he'd also served as chair. The fifth item on the an appeal of the Town of Vail Design Review Board's (DRB) approval of a design review application (DRB05-0040), pursuant to Section 12-11, Design Review, Vail Town Code, to allow for a new single-family residence, 1345 Westhaven Circle/Lot 50, Glen Lyon, and setting forth details in regard thereto. Town Attorney Matt Mire stated the appellant, Patricia O'Neil, filed a Request for a Continuance of Hearing, to which the owners of Lot 50 did not object. Moffet moved with Hitt seconding for a continuance. The motion passed unanimously 6-0. The sixth item on the agenda was a Conference Center Update and Overview. Community Development Director Russ Forrest reported the purpose of the presentation was to review all components of the conference center project and to seek Council's direction regarding three options: 1) discontinue the project; 2) continue with the current design, but reduce costs where possible while seeking additional revenue with a ballot question in November; or 3) make the project fit within the existing budget. Paul Sajovic representing HVS International, briefly summarized the operations component of the center, answering the following questions: Why build this project? Does Vail have the available beds? And, what do event planners say about the center? He also presented potential operators estimates vs. the HVS business plan. Sajovic stated the center was estimated to contribute 69,000 additional room nights per year; $30 million in additional spending per year; and $1.4 million in additional sales and lodging tax per year. He also stated there was no evidence of a downward trend in the conference industry. Sajovic • also stated there were two strong candidates for operators and the Conference Center Oversight Committee (CCOC) was evaluating their Request for Proposal (RFP) submittals in greater detail. Expanding on his statement, it was reported both firms believed they could improve upon the financial operating estimates in the business plan. Curt Fentress, representing Fentress Bradburn, the project designers, stated the firm was 50% complete with design, subsequently displaying visual perspectives. Finance Director Judy Camp introduced Johnathon Heroux, representing Piper Jaffray, town bond counsel. Heroux stated the town was collecting a 1.5 percent lodging tax and half - percent sales tax for the conference center, subsequently generating $3.5 million annually. Heroux stated the bond amortizations were based on 30 year schedules, common for projects such as the center. Forrest stated if the town began the conference center project today, the financial shortfall would be approximately $6.8 million. During a pause for public comment, Jake VonVelen expressed concern over transportation accessibility design for the facility. Jim Feldhaus, Colorado Mountain Express manager, urged Council to give the center due diligence and not to kill project. Ed O'Brien, representing Vail Valley Medical Center (VVMC), asked Council to continue with the project and emphasized the hospital's medical education division and VVMC would be a consistent user of the center. In response to a question from Cleveland about estimated group size, O'Brien said between 200 and 300 participants would attend per session. Stan Cope, a member of the Advisory Committee, urged Council to keep the project moving forward. Bob Fritch, Sitzmark Lodge owner, expressed concern over risks of a new convention facility, while Pam Stenmark, Evergreen Lodge manager, urged Council to move forward. Mark Gordon stated he believed the project made sense. Rob LeVine, general manger of the Antlers at Vail, spoke in support of the Conference Center. Joe Staufer and Tom Steinberg opposed the center. John Dossi, representing the Vail Marriot, stated many groups had been and would be turned away • due to larger facility requirements. Jim Lamont, representing the Vail Village r Homeowners Association, encouraged Council to continue with the process. Bob Louthan stated be believed the CCOC should provide a specific recommendation. Joel Heath and Alice Leads, spoke in support of the conference center, stating better/larger facilities were needed in Vail. Pete Feistmann asked if HVS could provide a success rate of their former clients. Sajovic stated HVS has had a solid track record with credible and accurate forecasts. Fentress addressed an earlier question involving access to the center in regard to large volumes of people. "We could facilitate up to 800 people through the front door at a time." Logan thanked all involved in the project and particularly Finance Director Judy Camp for providing financials in an understandable fashion. Logan emphasized he wanted to reduce risk to town taxpayers as much as possible. To accomplish this, the town would be required to increase the current $3.5 million dedicated annually to the center to at least $5 million. Logan added doubling the lodging tax dedicated to the center would add about $4 to the average room rate in Vail. Moffet asked if estimated revenues included increased sales and occupancy tax revenues created by the conference center. Camp answered, although conservatively, yes. Moffet stressed the importance of quality of life in Vail and how a more robust year- round economy would bolster it. Moffet moved to prepare a ballot measure to increase tax collections, cover interest rate risk and increase deficit coverage to an amount of roughly $1.2 million. Logan seconded the motion. During Council discussion, Hitt stated he thought the project was progressing and Council was paying the issue due diligence. "I believe if we move forward we will make it work." Cleveland expressed concern over sunset provisions included in the original (2002) conference center ballot initiative. Ruotolo expressed concern for smaller hotels as an increased lodging tax might be a detriment, or not commensurate to the benefit. Donovan stated Kent Logan had almost convinced her but many of her earlier concerns had been validated in the presentation. She then emphasized town staff needs to focus on other issues impacting the town. Slifer said he initially supported possibly reducing the size of the conference center and stated the CCOC had been blind -sided in the past six weeks about actual costs. Council then voted to prepare a ballot measure for the November election to cover: construction; interest rate risks; and appropriate operating expenses. The motion passed 6-1, Donovan dissenting. The seventh item on the agenda was the second reading of Ordinance No. #12, Series of 2005, an ordinance repealing and re-enacting Ordinance No. #8, Series of 1995, Cascade Village, amending and re-establishing the approved development plan for the Westhaven Condominiums site located within Area A of special development district (SDD) No. #4, in accordance with Section 12-9A-10, Vail Town Code, to allow for the construction of thirteen dwelling units. Town Planner Matt Gennett reported on February 8 and April 11, 2005, the PEC held public hearings to consider a request for a major amendment to a SDD pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for an amendment to SDD No. #4, Cascade Village, for an approved development plan of a new condominium building, located at 1325 Westhaven Drive /(Westhaven Condominiums, aka, "The Ruins")/Area A, Cascade Village. Upon consideration of the request, the Commission voted 6-0-1 (Viele recused) to forward a recommendation of approval with conditions of the applicant's request to continue. Gennett reviewed modifications requested by Council during the May 3 meeting. Moffet questioned language regarding the size of employee housing as he had missed the discussion on May 3. Ruotolo stated the Vail Local Housing Authority (VLHA) recommended use of the language "per employee to be housed," as opposed to the terms beds or units. Donovan questioned the matter as it would not encourage employee units and might lead to more (larger) housing for fewer people. Forrest clarified there would need to be at least one employee in each dwelling unit. Town Attorney Matt Mire qualified the Recreation Amenities Tax language should be struck from the ordinance. Hall answered questions regarding the relocation of the existing bike path and subsequent re -vegetation of the area. Representing the applicant, Rick Pylman stated Council's recommendations would be adhered to. In a response to Council questions, Jeri Wright, the applicant, argued additional sidewalk construction on the southwest portion of the property should fall in the realm of the existing metropolitan district. Ruotolo moved to approve the motion. Moffet seconded an amended motion to approve. The motion passed unanimously, 7-0. The eighth item on the agenda was the second reading of Ordinance #13, Series of 2005. An ordinance providing certain amendments to Title 3, Chapter 4, "DRB," of the Municipal code of the Town of Vail; changing the composition of the DRB from five to seven members. Council requested an ordinance that would change the composition of the DRB from five members to seven members. Mire stated the ordinance spoke for itself and passed narrowly on first reading. Forrest reiterated concern expressed at the May 3 meeting, and stated a supplemental budget for meals and benefits would need to be submitted. Ruotolo moved and Hitt seconded a motion to approve. Donovan stated she believed a seven member board would be too large to effectively address such matters as encountered by the DRB. "Council should focus on removing applicants who are not attending meetings or performing." During a pause for public comment, Jim Morter suggested individuals who work in Vail, but do not live in the town, be allowed to participate on town boards. The motion failed, 3-4, with Moffet, Cleveland, Donovan, and Slifer opposed. The ninth item on the agenda was a funding request from Timber Ridge Affordable Housing Corporation (TRAHC). Speaking as the president of the TRAHC Board, Stan Zemler, Town Manager, reported with only 114 units available for rent and increasing interest rates, the TRAHC board had developed a plan to remediate up to 44 additional units and identified a potential master lessee for those units. The cost to remediate those units would be approximately $370,000. He also stated an additional $330,000 was required for 2005 expenditures that could not be covered by rental from the 114 units occupied at the time. Following remediation of the additional units, annual rental income would increase by approximately $500,000, which the TRAHC board believed would be sufficient to cover annual obligations. Zemler then asked Council to consider making a loan of $700,000 to TRAHC for the purpose of remediating additional units and funding 2005 cash flow requirements. The proposed loan would carry the same terms and conditions as the town's current loan to TRAHC — 1.5% annual interest; maturity date December 1, 2032; repayable from project revenues; subordinate to 2003A and 2003B bonds; no penalty for early repayment. Logan asked Judy Camp to summarize the financial condition of TRAHC, and in the absence of the loan, how the requirements and deficits would be financed. Camp verified the corporation would be bankrupt. Speaking as the town's attorney, not the TRAHC attorney, Mire stated approving the loan would be the most fiscally responsible way to proceed. Logan asked for the board to return with a viable operating plan. Zemler stated progress would be made by the middle of June. Answering Logan, Zemler stated the TRAHC board could have an operating request for proposals (RFP) for redevelopment of the property in 30 days. Logan moved to make the loan to TRAHC for remediation and cash flow requirements. Moffett seconded. The motion passed 7-0. • The tenth item on the agenda was the Town Manager's Report. ➢ Seibert Circle Update Zemler announced artist Jesus Moroles would return to Vail in July to evaluate relocation possibilities for his sculpture pieces, which have been removed from Seibert Circle to accommodate a new feature. Although the artist was disappointed the town hired local contractors to remove the sculpture, Moroles had notified the town he would work with Art in Public Places (AIPP) to relocate the granite amphitheatre. Zemler then said AIPP had established a committee to examine potential sites and set project parameters for the relocation. The eleventh item on the agenda was adjournment. The meeting was adjourned at approximately 9:55 p.m. Moffet moved, and Logan seconded a motion to adjourn. The motion passed, 7-0. Respectfully Submitted, Rodney E. Slifer, Mayor ATTEST: OF J OftN .......�� SEA 1 Lorelei Donaldson, Town Clerk c�tci�'rro Minutes provided by Corey Swisher. 0