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Home My WebLink About2006-10-10 Town Council Minutes• Vail Town Council Evening 9 Meetin Minutes Tuesday, October 10, 2006 11:05 A.M. Vail Town Council Chambers CJ The regular meeting of the Vail Town Council was called to order at approximately 11:05 A.M. by Mayor Rod Slifer. Members present: Kent Logan Kim Newbury Mark Gordon Kevin Foley Greg Moffet Rod Slifer Members not present: Farrow Hitt Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Asst. Town Manager Pursuant to Section 4.2 of the Vail Town Charter, the Town Manager requested a Special Meeting of the Vail Town Council for the purpose of discussions on: 1. Affordable housing strategy. Representing RRC and Associates, Chris Cares explained numerous housing strategies. The housing supply, which is decreasing for employees in Vail, cannot meet current demand by local residents and employees and demand generated from second homeowners. Vail is also part of a larger region that faces similar constraints with regard to addressing local demand for housing. Past discussions have focused on two types of needs within the town; there is a stated need to "keep up" with the demand created from new commercial and residential development. In addition, the town must also address historic deficiencies: there is a need to "catch up" with shortages that exist today. Cares emphasized the outlined strategies would need to be implemented symbiotically with other housing tactics to achieve the potential goal of housing 30% of Vail's workforce within the town limits. Cares clarified the town currently houses 936 employees in deed restricted units. Housing Coordinator Nina Timm reported 6300 employees fill 9100 jobs within town limits. Gordon clarified ten percent of the current work force resides in deed restricted units. Gordon continued, 'We should shoot for 30% of workforce living in deed restricted housing." Logan clarified the definition of build -out encompassed all capital and economic growth expected in the reasonably foreseeable • future. While discussing commercial linkage Cares reported to Council that based on anticipated new commercial redevelopment, the town can expect 1395 new jobs to be • created. "This strategy would provide 332 new housing units, using a 30% mitigation rate, or 221 new housing units, using a 20% mitigation rate." To evaluate this technique the town contracted with RRC to conduct a rational nexus study explicit to the town. Specifically, this study was intended to permit the town to provide a standard percentage requirement for new commercial square feet. The study was directed to address pay -in - lieu options per employee to be housed or portion thereof. Council had also directed staff to consider a "residential linkage" requirement. With the growth in high -end residential units this tool is being used more frequently in other resort communities. The technique is essentially similar to commercial linkage, but it is applied to employment associated with residential development. With the growth of highly amenitized residential developments, the job demand created in these developments is high. All of the same questions that need to be answered for commercial linkage will need to be addressed for a residential linkage program. Cares explained, "More typically, inclusionary housing occurs on site." While discussing housing options at Timber Ridge, Town Manager Stan Zemler explained it would be difficult to finance the parcel's redevelopment using a 45% (market rate housing) / 55% (affordable housing) split. Gordon encouraged moving forward with policy direction as swiftly as possible. He emphasized, "Developments that are underway now should be subject to these new housing regulations." Vail Local Housing Authority (VLHA) member Mark Ristow said the VLHA should return to Council with a commercial linkage ordinance or resolution recommendation. Planning and Environmental Commission (PEC) member Bill Jewitt said the PEC was looking for direction regarding housing decisions. Slifer encouraged examining regional alternatives to affordable housing as Vail is almost built out and future employee housing developments would require high density projects. "I believe • size and scale and character are important to Vail." Town Attorney Matt Mire said he would bring forward a resolution expressing Council's intent to update the town's employee housing strategy. Representing the Vail Village Homeowner's Association, Jim Lamont applauded Council's efforts and encouraged bringing greater balance to the socio-economic distribution of the community. "We need to focus on diversifying the composition of the neighborhoods." Local developer Peter Knobel encouraged Council to incorporate flexibility in their housing program. Tom Braun asked Council to develop a coherent housing strategy that would eliminate "negotiations and guessing games." Mauriello Planning group owner Dominic Mauriello encouraged using accurate data when developing commercial and residential housing linkages. `The data has been 'so averaged it doesn't reflect Vail at all." Staff direction was then provided: • Determine the industry responsible for the creation of 1395 new jobs. • Evaluate and place greater emphasis on residential linkage and inclusionary zoning. • Evaluate deed restriction "warehousing." • Evaluate potential of tax/fee supported housing fund. • Potential program allowing existing deed restricted EHU owners to transfer restrictions to alternate property. • Expedite all of the above. 2. Long Term Capital Management Plan. Finance Director Judy Camp and Manager of Budgets & Financial Reporting Kathleen Halloran presented the 15 year capital plan as a follow up to Council discussions on • September 19`h. Camp reported that based on current assumptions, the Capital Projects • Fund is unable to support the proposed projects beyond 2007, while the fund balance in the RETT Fund continues to grow. Some key assumptions used to develop the capital improvement plan: • 35% of sales tax revenue is dedicated to the Capital Projects Fund. • The Capital Asset Management Plan addresses only existing assets and the West Vail Fire Station, no other new buildings, public parking expansion and/or replacement costs are not included; additional capital maintenance and operating costs will result from any new buildings. • Project costs are assigned to the Capital Projects or Real Estate Transfer Fund (RETT)based on where they have historically been funded. Revenue projections and project costs were updated to reflect the latest estimates. In the Capital Projects Fund, Crossroads streetscape was deleted from the 2008 projection because as it will be provided by the developer. The following projects have been added in 2007: Fire suppression in computer rooms - $35,500 to protect the town's public safety and other records and equipment. Town of Vail planning - $150,000 as a placeholder for additional work to be done as an outcome of the various planning exercises now underway. The following projects were added to the RETT Fund: • Recreation master planning with VRD - $50,000 each in 2007 and 2008 as a placeholder for implementation of the GreenPlay recommendations, starting with updating the leases and operating agreements between the town and the Vail Recreation District. • Public Art — now reflect Art In Public Places (AIPP) request to have funding for public art at a level that is approximately 4% of the transfer tax revenue (yet to be approved by Town Council). • Bear -proof containers - $180,000 has been added to 2007 to allow for the purchase of containers compliant with the new ordinance. Issues which require policy direction are as follows: • Project priorities. • Adjusting split of sales tax revenue from 60/40 to 65/35. • Prioritization of Tax Increment Financing (TIF) dollars (some projects included in the spreadsheet may be eligible for TIF funding; TIF revenue is not included, but the latest estimate is $10 - $12 million of project funding could be provided from the LionsHead TIF District. • Town of Vail responsibility for assets managed by Vail Recreation District (expenditures for capital maintenance are included in the RETT spreadsheet). • Consideration of additional uses of RETT Funds. • Conference Center Funds. is Zemler emphasized that without significant reprioritization or the realization of additional revenues, the Capital Projects Fund does not have sufficient funding looking out over the • next several years. 'We don't have the dollars to build the kind of facilities we think we need to be building." Camp explained that a 35% general fund reserve was being maintained during redevelopment. Zemler asked if Council was willing to examine the structure and use of Real Estate Transfer (RETT) funds. "A portion of that money would help fund some other things in the general fund or. capital fund." Logan clarified the Capital Fund estimates did not include any major renovations to the LionsHead parking structure. Referring to the 65/35 split, Foley said, 'We have to look at operations and make sure we aren't a big bureaucracy, a change (increase in general fund split) of 15% in ten years is astronomical." Newbury suggested Council readdress and amend the Ford Park Master Plan as its goals may not be consistent with the present Council's wishes. Mire noted Council may use RETT funds for any legitimate public purchase by Ordinance. Logan recommended developing a financial/economic master plan. Zemler then expressed concern over agreements with the Vail Recreation District in regard to maintenance of capital assets as the financial implications could be severe. Foley moved to adjourn with Newbury seconding at approximately 3:00 p.m. The motion passed unanimously, 6-0. 0 Rodney E. Slifer, Mayor • ATTEST: - to 009 Lorelei Donaldson, Town Clerk 0. •••• Minutes provided by Corey Swisher. C, 4