HomeMy WebLinkAbout2007-12-04 Town Council MinutesVail Town Council Special Meeting Minutes
Tuesday, December 4, 2007
6:00 P.M.
Vail Town Council Chambers
The regular meeting of the Vail Town Council was called to order at approximately
6:00 P.M. by Mayor Dick Cleveland.
Members present: Dick Cleveland, Mayor
Andy Daly
Mark Gordon
Farrow Hitt
Kevin Foley
Kim Newbury
Margaret Rogers
Staff Members: Stan Zemler, Town Manager
Matt Mire, Town Attorney
The first item on the agenda was Citizen Participation. Stephen Connolly suggested
Council begin enhanced support of green initiatives. One example, he said, would be to
eliminate distribution of bottled water at town meetings.
Dave Chapin asked for more "common sense" parking enforcement and described a
situation called "looping" in which violators receive a ticket.
Paul Rondeau suggested a brochure be available to residents who wish to speak before
Council (instructing them on protocol and etiquette). He then asked for more
transparency when reporting the town's property and construction use tax revenue. He
also asked how a topic became part of Town Council's agenda. Margaret Rogers
clarified how a citizen should proceed.
Foley entered the Council Chambers at approximately 6:15 p.m.
Representing the Vail Chamber & Business Association, Kaye Ferry reported the
Colorado Department of Transportation had recently held an informational meeting
regarding 1-70 paving mitigation.
Cleveland read Proclamation 1, Series of 2007. A proclamation honoring a group of
skiers from Montreal, Canada, who have been visiting Vail for 35 years.
The second item on the agenda was the Consent Agenda.
a. Approval of November 6, 13 & 20 Minutes
Foley moved to approve the November 6 minutes with Hitt seconding. The motion
passed unanimously, 4-0. (Newbury, Foley, Gordon and Hitt voting, the "sitting" Council)
Foley then moved to approve the November 13 & 20 meeting minutes with Hitt
seconding. The motion passed unanimously, 7-0.
b. Lease of town owned properties located at 241 South Frontage Road West, Suite 2
and 100 East Meadow Drive, Unit 2 to Plum TV, Inc.
Mire asked Council to make a motion approving and authorizing the Town Manager to
execute, on behalf of the town, the lease agreement between Plum TV and Town of Vail
in substantially the same form as presented and to take whatever steps are necessary to
complete the execution of the lease agreement. Daly moved to approve the lease with
Newbury seconding. The motion passed unanimously, 7-0. For more information,
contact Matt Mire at 479-2460.
The third item on the agenda was the Town Manager's Report
Revenue Update.
Finance Director Judy Camp reported sales tax collections for the month of October are
expected to be $679,308, up 10.6% from October, 2006. Year-to-date collections of
$15.3 million through October continue to exceed last year's year-to-date by 7.2%. For
comparison, inflation as measured by the consumer price index was up 3.5% in October
compared with the prior year. Construction permit revenue, which can be considered an
indicator of redevelopment activity, continues its strong trend with year-to-date
construction permit fees of $2.5 million through November 27, up 24% from the same
period last year. Year-to-date permit fees include $1.8 million from major construction
projects: 9 Vail Road, the Arrabelle at Vail Square, Cascade, Forest Place, Four
Seasons, Front Door, Landmark, Lodge at LionsHead, Manor Vail, Mountain View
(formerly Apollo Park), Ritz -Carlton, Solaris, Vail Plaza Hotel, Westhaven
Condominiums, and the Willows. Construction permit fees include building, electrical,
mechanical, plumbing and sprinkler permits. Through November 27, 2007, the town has
collected a record $981,707 in recreational amenities fees, compared with $117,501 for
the full year 2006. Contributing to this year's high revenue number are Cascade
Residences, Four Seasons, Mountain View, Ritz -Carlton Residences and The Willows.
Recreational amenities fees are applied to new residential square footage and deposited
to the Real Estate Transfer Tax Fund to be used for open space, parks, recreation, and
environmental sustainability. Year-to-date RETT collections through November 30, 2007,
total $5.1 million compared with $5.4 million for the same time period last year, a
decrease of approximately six percent. Major redevelopment projects including Forest
Place, Gore Creek Place, Manor Vail and One Willow Bridge Road contributed
$1,081,044 or 21 % of the total in 2007 while only $464,500 or 11 % of the total in 2006
consisted of major redevelopment projects. For details, contact Judy Camp at 479-2119.
Construction TCO Status
Zemler stated, 'We are working diligently to get the Arrabelle open ... We are in front of
everything else to this point...The Vail Plaza Hotel is looking pretty promising... The
loading dock issue is unlikely to be resolved by the time we release a TCO... I know we
are pretty close on opening ticket sales and a few of the retail stores (Mountain Plaza,
formerly the Front Door)."
Update on 1-70 Summer'08 Paving
2
Zemler stated he would keep Council abreast of any news or happenings
Zemler then announced, 'We will not complete Seibert Circle this winter ... We will finish
off the stonework and there will be some work taking place at times in the vault ... We
have another six weeks if not more to get things done there." Rogers said the cost for
holiday decorating of the construction site should be charged to the parties responsible
for the delay (Wet Design).
Hitt clarified that "quiet asphalt" would be used when 1-70 is repaved in 2008.
The fourth item on the agenda was the Summer Air Update.
Town air representative Kent Meyers of Air Planners provided an update on summer air
service to Vail/Eagle County Regional Airport (EGE). Non-stop, full-sized jets fly daily
from Dallas, Chicago and Denver and add to the guests' experience with the
convenience of direct flights; visitors may also fly direct from major connecting cities,
according to Meyers. Flying direct allows EGE guests to bypass time-consuming shuttle
services associated with the area's other regional airports. Guests may take advantage
of the numerous ground transportation and car rental options available in the terminal,
resulting in less hassle and more convenience, allowing faster enjoyment of hiking,
cycling, golfing, fishing or any of the other many summer/fall activities of the Vail Valley.
EGE is making it even easier for guests to experience more of the Vail Valley by offering
daily, non-stop service to Dallas/Ft.Worth in the fall. This means nearly ten months of
continuous service into and out of the Vail Valley. Meyers emphasized the success and
continued growth in the use of summer air service. Fall flights will take longer to become
profitable and not require a subsidy. For more information, contact Kelli McDonald at
479-2454.
The fifth item on the agenda was the First reading of Ordinance No. 37, Series of 2007,
An Ordinance Adopting a Use Tax on Construction and Building Materials; Amending
Title 2, Revenue and Finance, Vail Town Code with the Addition of Chapter 8 "Use Tax
on Construction and Building Materials.
Town Attorney Matt Mire explained the construction use tax ballot question approved by
Vail voters on November 6ch gave Council the authority to implement a four percent tax
on building and construction materials consumed or used in the Town of Vail. Proceeds
of the tax are to be used exclusively for capital acquisitions and capital projects in the
town. Implementation of the tax is accomplished by two readings of an ordinance which
sets the policy and administrative details relating to the tax. Hitt clarified the first $10,000
of all projects would be exempted. It was reported the Vail Local Housing Authority
(VLHA) recommended no exemptions be made for affordable housing. Hitt moved to
approve the ordinance with Rogers seconding. During a pause for public comment,
Stephen Connolly asked how the ordinance would apply to duplexes. Mire explained the
exemption was based on individual building permits. `The exemption applies equally to
everyone in the community." Former Mayor Bob Armour clarified building permit
applicants would not be able to avoid the cost of the tax by applying for multiple building
permits for a single project. Dominic Mauriello clarified minor amendments to projects
would not be subject to the tax. Mire subsequently referred Mauriello to Section 2-8-3 of
the Ordinance. "If any approval expires by its terms after January 1, 2008, such
application for development review shall then be subject to the use tax imposed by this
Chapter." Carol Alleman asked for clarification in the method used to determine project
valuations. Council then discussed considerations for potential refunds for deed
restricted employee housing. The motion passed unanimously, 7-0. For details, contact
Matt Mire at 479-2460.
The sixth item on the agenda was the consideration of an amendment to the 2004 Core
Site Development Improvement Agreement in regard to housing obligations.
Due to a predetermined conflict of interest (Vail Resorts affiliation), Gordon recused
himself from the item and left the Council Chambers. Zemler began the discussion by
saying, 'We are seeing significant improvements in the facilities and services available in
LionsHead through the development of Arrabelle ... That is certainly in the town's best
interest ... The North Day Lot represents new, incremental housing for the community ... it
requires they move forward with diligence and they move forward with good faith"
Rogers spoke in favor of Vail Resorts pursuing a pay -in -lieu option. Foley asked if the
Council Members present in 2004 believed the current situation is how they envisioned
the process unfolding. Cleveland responded, "Our issue now is to resolve the problem
not talk about how we got here ... It's in nobody's best interest that the Arrabelle stay
closed ... This gets us to where we are trying to go ... It seems to me the details can be
worked out ... It seems there needs to be trust on each side ... If all we pursued was pay -
in -lieu, we would be putting Vail Resorts burden of housing on the shoulders of the Town
of Vail." Newbury interjected, 'We can't set them (Vail Resorts) up for failure ... I also
think it is important we are not tying our hands." Hitt commented, "If they don't submit by
March 30, we cash the letter of credit ... Then we call it a day and we move on and
hopefully everyone has learned some lessons from it." Community Development Director
George Ruther said it was a realistic expectation that the development review process
for a North Day Lot project could be accomplished in eight months. During public
comment, Kaye Ferry clarified that any pay -in -lieu option would include a consumer
price index adjustment. She then asked, 'Why is Ever Vail not an option for housing?"
Dave Chapin clarified 120 employee beds were required to fulfill Vail Resorts employee
housing requirement for the Arrabelle at Vail Square. Vail Resorts Development
Company President Keith Fernandez stated, "Our last desire is that the letter of credit
would be the cashed ... We feel confident we can have a plan by March 1... And we think
we can live with some of the other dates that have been proposed ... I appreciate all of
your efforts and we seek resolution." Representing the Vail Village Homeowners'
Association Jim Lamont stated, "I hope this is the beginning of a new beginning and we
move smartly on." Tom Neyens commented, "I've appreciated the Arrabelle being closed
as my business has prospered ... I know people who own (property) around the North
Day Lot and I'm not so sure how that will go over." Packy Walker stated, `Thirty years
ago we dropped the ball on housing ... You are going to find this winter to be very telling
for this town because there are not going to be any employees to run it." Carol Alleman
said, 'We have continually ignored the topic of employee housing ... Our whole
community is in a crisis ... You can't even get bad people to apply for your jobs...l think it
is totally wrong to let Vail Resorts off on this issue." Dana Johnson requested strict
timelines and penalties be imposed on Vail Resorts if they were unable to provide their
required housing. Hitt then moved, "to make an amendment to the Core Site
Development Improvement Agreement to work with diligence and in good faith to obtain
appropriate development application approvals for the North Day Lot no later than
October 31, 2008. If appropriate approval is obtained by October 31, 2008, Vail Resorts
will commence construction on the North day Lot no later than May 1, 2009. Upon
issuance of a TCO for the North Day Lot project, the Letter of Credit (LOC) will be
returned to Vail Resorts." The motion did not receive a second. Neyens then encouraged
Council to support the housing requirement being met somewhere other than the North
Day Lot as potential litigation might delay the actual supply of employee housing.
Fernandez said, "I'm concerned that we would be taking a lot of alternatives off the
table ... I can't understand what would be lost by not having those options... There are
some planning issues on North Day that are out of our control." Town legal
representative Malcom Murray informed Council, "You can always amend an agreement
you have entered into." Council agreed to call a special meeting at 2 p.m. December 11,
2007. Daly moved to continue negotiations with Newbury seconding. Walker expressed
concern the proposal would provide no new housing for three to five years. The motion
passed 4-2, with Foley and Hitt opposed. For more information, contact Stan Zemler at
479-2106.
The seventh item on the applicant, the Town of Vail, is requesting a first reading of
Ordinance 33, Series of 2007, an Ordinance to enact prescribed regulation amendments
to Title 12, Vail Town Code, to require public art for certain new development and
redevelopment projects in Lionshead Mixed Use 1, Lionshead Mixed Use 2, Public
Accommodations, Public Accommodations 2, Commercial Core 1, Commercial Core 2,
Commercial Core 3, Ski Base Recreation, and Ski Base Recreation 2
Daly moved to approve the ordinance with Rogers seconding. Newbury asked if
variances could be granted. Mire stated it was a zoning issue and variances would be
difficult. Cleveland spoke in vehement opposition to the ordinance. "I think this is
contrary to what government is supposed to do." AIPP Board Member Doe Brown spoke
in support of the ordinance and said it would help eliminate developer confusion in
regard to public art. Mire and Rogers spoke in support of providing more detail and
process for developers. During public comment, Kaye Ferry asked how a PEC denial
became a staff recommendation. The motion failed 3-4, with Daily, Gordon and Rogers
voting in favor. Council gave direction to staff to explore further public art options with
regard to the process in the event public art is agreed upon as a preferred mitigation
action.
The eighth item on the agenda was the First Reading of Ordinance No. 38, Series of
2007, An ordinance making supplemental appropriations to the Town of Vail General
Fund, Capital Projects Fund, Real Estate Transfer Tax Fund, Dispatch Services Fund
and Heavy Equipment Fund of the 2007 Budget for the Town of Vail Colorado; and
authorizing the expenditures of said appropriations as set forth herein
Manager of Budgets and Financial Reporting Kathleen Halloran reported the third
supplemental appropriation included a $3.6 million increase in revenue and
approximately $900,000 in expenses. Newbury moved to approve the ordinance with
Foley seconding. The motion passed unanimously, 7-0.
The ninth item on the agenda was the tabling of the second reading of Ordinance No.
32, Series of 2007, an Ordinance to enact prescribed regulation amendments to Title 11,
Sign Regulations, and Title 12, Zoning Regulations, Vail Town Code, to allow for
amendments to regulations pertaining to outdoor display, sales signs, menu boards.
Daly moved to table the ordinance until December 18 with Newbury seconding. The
motion passed unanimously, 7-0.
The tenth item on the agenda was the Second reading of Ordinance No. 34, Series of
2007, an ordinance amending the Official Zoning Map for the Town of Vail in accordance
with Title 12, Zoning Regulations, Chapter 5, Zoning Map; Rezoning Lot 8B, Block 2, Vail
Potato Patch, from High Density Multiple Family (HDMF) District to Housing (H) District
On October 8, 2007, the PEC held a public hearing on a request to amend the Official
Zoning Map for the Town of Vail in accordance with Title 12, Zoning Regulations, Chapter
5, Zoning Map; Rezoning Lot 8B, Block 2, Vail Potato Patch, from High Density Multiple
Family (HDMF) District to Housing (H) District (PEC07-0059). Upon review of the request,
PEC voted unanimously (5-0-0) to forward a recommendation of approval of the request
to amend the Official Zoning Map to the Vail Town Council. On November 20, 2007, the
Council voted unanimously to approve Ordinance No. 34, Series of 2007, on first reading.
Hitt clarified the employee housing units were intended to be used by Sonnenalp Resort
employees. Newbury moved to approve the ordinance with Rogers seconding. The motion
passed unanimously, 7-0.
The eleventh item on the agenda was the second reading of Ordinance No. 35, Series of
2007, an ordinance amending Sections 12-61-3, Conditional Uses, and 12-16-7, Use
Specific Criteria and Standards, Vail Town Code, to add "Professional Offices and
Business Offices" to the list of allowable conditional uses in the Housing (H) District
On October 8, 2007, the PEC held a public hearing on the request for a text amendment
to the Vail Town Code. Upon consideration of the request, the Commission voted
unanimously (5-0-0) to forward a recommendation of approval of the text amendment
request to the Vail Town Council. On November 20, 2007, Council voted unanimously to
approve Ordinance No. 35, Series of 2007, on first reading, with suggested revisions to
the text amendment. Staff has made the requested revisions to the text and presents
the Ordinance for second reading. Newbury moved to approve the ordinance with Daly
seconding. The motion passed unanimously, 7-0.
The twelfth item on the agenda was the second reading of Mill Levy Certification,
Ordinance No. 36, Series 2007.
Gordon moved to approve the mill levy certification with Rogers seconding. Daly clarified
if Council chose to reduce the mill levy for one year, it would be very difficult to
reestablish the mill levy in future years. Mire stated that outside legal counsel and the
Department of Local Affairs had been consulted as well, and both sources agreed that
once the mill levy is reduced, the town would not be able to increase it back to the
original levy without a vote of the people. Gordon emphasized a reduction would mean a
very minimal reduction in the town's portion of residents' tax bills. Rogers proposed the
additional funds be deposited into a "rainy day fund." Hitt clarified the town mill levy
accounted for 9.5% percent of his constituents' tax bill and inquired about other property
tax recipients. Judy Camp identified the school district as receiving approximately 39%
of a Vail property owner's tax bill and the county at 17%. During a pause for public
comment, Joe Staufer said it was unethical to not reduce the mill levy as the recently
passed construction use tax was intended to supplement property tax revenue. Packy
Walker encouraged marketing the town better as opposed to collecting more tax
revenue. Tommy Neyens asked council to be responsible with their spending. Mire
clarified it is illegal to increase property taxes and would be a violation of state law; the
increase in residents' tax bills is due to increased property valuations. Newbury qualified
the town's assessed values actually dropped in 2004. During public comment, Dana
Johnson said her tax bill would double. Kaye Ferry, referring to the assessment ratio
applied to various types of property, reminded Council it was a three to one ratio for
businesses. Representing the Vail Village Homeowners' Association, Jim Lamont said
he would err on the side of keeping the public's trust in place. The motion failed 1-6, with
Gordon in favor. Cleveland proposed the option of forgoing the abatement portion of the
town's levy as a good faith gesture. The town is legally able to do this without losing
future opportunity to collect abatements. Rogers moved to pass the ordinance with a
zero abatement levy with Newbury seconding. The motion passed 6-1, Gordon opposed.
For details, contact Judy Camp at 479-2119.
The thirteenth item on the agenda was adjournment.
Newbury moved to adjourn with Hitt seconding at approximately 9:45 p.m. The motion
passed unanimously, 7-0.
PT
SEAL
ATTEST: N
LJLoreionaldson, Town Clerk
Minutes provided by Corey Swisher.
LACK uievelana, mayor