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HomeMy WebLinkAbout2008-03-18 Town Council MinutesVail Town Council Special Meeting Minutes Tuesday, March 18, 2008 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 Hitt was not present at the beginning of the meeting. The first item on the agenda was Citizen Input. Vail Resorts senior vice president and chief operating officer John Garnsey introduced the company's new Epic pass. The pass is an unrestricted season pass that's valid for the 2008-2009 ski and snowboard season at Vail, Beaver Creek, Breckenridge, Keystone and Heavenly, all for an initial price of $579. "We want to reward those loyal customers who have been coming here for many years and to develop brand loyalty ... We are rewarding the people who make a commitment to come to the Vail Valley before the season starts ... This product will blend out the season... Merchant passes will still be available, but at a better price...We believe the impact on peak periods will be relatively insignificant. We believe at the end of the day it's a good thing for this valley ... We are willing to walk away from it if it causes more bad things than good things." Daly expressed concern the increased pass sales would create more days of parking on the frontage road. Rogers asked if research supported the removal of restrictions on the number of days a pass holder could ski. Gordon asked if the incremental number of skier days would be increased. Garnsey responded, "The whole purpose of this is to drive visitation to the non -peak." Newbury asked that the company advise the town regarding pass sales on a regular basis to help plan for whatever service and staffing adjustments may be necessary. Daly asked Garnsey to return to Council in 30 days with a contingency parking plan. "The traffic situation we are being told by our citizens is intolerable." During a pause for public input, Billy Suarez expressed concern that any increased traffic or parking congestion would be unmanageable. "A one percent increase in what we have already is too much without a plan." Ann Johnson requested Vail Resorts report how many passes are sold out of state and in state to help with the planning. Tommy Neyens spoke in support of the pass but expressed concern about increased parking. Susie Tjossem said local businesses are suffering due to a lack of parking. She suggested blocking off two layers of parking in the Village structure until 11 a.m. as an experiment to determine if better options for shoppers and diners could be created. The second item on the agenda was recognition of former Council Members Greg Moffet and Kent Logan. Daly read proclamations honoring the service of former Council members Greg Moffet and Kent Logan. Moffet jokingly said, "I would do it all again much to the chagrin to some of you." Logan said the current Council faced challenges similar to those in 2003 when the town was considering redevelopment. "The challenges today are equally as daunting ... The future is certainly uncertain... Revenue projections are too optimistic. There will be an accident in this period ... There is going to be a redevelopment project that is half done ... Any non -essential capital expenditure should be postponed... There is a time to play offense and there is a time to play defense. Now is the time to play defense." The third item on the agenda was a Battle Mountain High School Hockey and ProStart Teams Recognition. Council recognized the two high school groups for their recent achievements. The ProStart culinary team was recently crowned State Champions for the third year in a row. They were last year's National Champions (first from the State of Colorado). They are now preparing for the 2008 National Competition. Their State Championship is the result of countless hours of preparation and attention to detail and due to great local support. The Hockey Team finished the season as Conference Champions. They were undefeated in conference play (12-0) and 20-3-0 overall. Their dedication and the extra work with morning strength training sessions along with their afternoon practices paid dividends in their results during both the regular and post season. Though they lost in double overtime 3-2 in the State Championship game, as a fan so wisely put it from the team who won the game, "There were no winners or losers in that game. There were two really good teams and one of them just had to put the puck in the net one more time to end it." The fourth item on the agenda was the Town Manager's Report. • 1-70 Overlay Project Update. Public Works Director Greg Hall explained bids had been opened for the 1-70 paving project through Vail, and although higher than estimated, CDOT has agreed to move forward with the project beginning in April. All work will take place in the evenings so as to avoid long traffic delays encountered during the 2007 construction season. Daly thanked Hall for working so diligently with CDOT on the planning. The fifth item on the agenda was the LionsHead Parking Structure and Conference Center Update. Proposed project developer and Open/Hillwood Partners representative Mark Masinter provided Council with an update on the LionsHead Parking Structure project plan including proposed changes in the conference center space and status of the deed restriction held by Vail Resorts. The LionsHead Parking Structure Development Improvement Agreement between the Town of Vail and Open/Hillwood called for the following actions: By February 13, 2008, revised Conference Center proposal to be submitted. By March 15, 2008, project plan including schematic, architectural, internal and external layouts of the project to be submitted for approval by the Council. Project plan submittal deadline above may be extended by either party to no later than September 15, 2008. Masinter's update to the Town Council included the following: Reconfiguration of the W Hotel and St. Regis Hotel on the site to better accommodate development needs. W Hotel is proposed to have 160 keys, plus 58 condos; St. Regis would have 80 keys, 72 condos and 25 fractional fee units. An estimated 217 employee housing beds are anticipated to be required of the project. • 2,038 parking stalls (1,639 public), up from 1,150 spaces in use today. • Relocation and enlargement of the proposed conference center from 34,000 square feet to 37,560 square feet to adjoin the two hotels with the addition of a 200-seat learning center lecture hall. • The addition of a Denver Art Museum annex. 90,000 square feet of retail space. • Transit center Visitor information center. During discussion Rogers asked if Vail Resorts was willing to release its deed restriction on the property. Masinter responded, "They've given us no indication that they will stand in the way ... They want us to commit to delivering what we have proposed." Daly wanted assurance that financing is in place. "In my mind, we can't put any more time or energy into this project until the deed restriction is removed and an irrevocable funding commitment to make this project move forward has been identified." Foley clarified there was no planned on -site employee housing. Gordon applauded Masinter for the numerous project improvements. "We need the Ever Vail parking structure built and we need to get Ever Vail." (The project can't go forward until additional parking in West LionsHead is created). Masinter assured Council he had adequate financial resources to make the project happen. Cleveland said he was concerned the project relied on the completion of the Ever Vail parking structure. Mire explained the project plan would be a milestone in the development improvement agreement. Daly asked Ruther if he believed Masinter's presentation materials met the town's requirement of a project plan. "Do we believe this meets the project plan requirements laid out in the agreement?" Ruther said yes, but added that additional detail on certain aspects of the project would be helpful (i.e., internal circulation of the conference center). Daly asked Masinter to continue working with Vail Resorts so they could clarify any issues surrounding the deed restriction. During a pause for public comment, Rob LeVine, general manager of the Antlers, spoke in support of the proposed conference center. "I'm excited about the learning center and the contribution it will make to the community." LionsHead business owner Tommy Neyens urged Council to move forward with due diligence. He then clarified that eminent domain could be used to address the deed restriction issue. Paul Rondeau asked for clarification on a point in the project plan. Keith Odza, representing a Vail lodging committee, asked to see more conference center detail to determine if it truly meets the needs of the local lodging community. Mire urged Council not to impose artificial deadlines on the project. Council agreed to allow Open/Hillwood to continue to progress and operate under terms of the present agreement. Gordon asked Council to take an active role in encouraging Vail Resorts to lift the deed restriction. Hitt entered the Council Chambers at approximately, 7:10 p.m. The sixth item on the agenda was the Timber Ridge Redevelopment Proposal. Mark Masinter appeared before Council to provide a progress report on negotiations between the town and his development partner, Lincoln Property Southwest, regarding the proposed sale and redevelopment of a portion of the Timber Ridge housing complex. Following a 46-day negotiation period, which had been underway since Jan. 22, most Council members said they would be unwilling to sell the land to the developer as proposed. That sentiment was also expressed by community members during the public comment period. Also, additional complexities were identified that caused the Council to express concern over the long-term affordability of the rental rate structure and the overall financing of the project. The developer had offered to purchase two-thirds of the site, or 6.2 acres, for $13.2 million. The town began entertaining the redevelopment concept in the fall of 2007 when the developer proposed Timber Ridge as a way to satisfy an employee housing requirement that would be tied to a redevelopment plan for the LionsHead parking structure. A development improvement agreement signed on Sept. 18, 2007, between the town and the developer authorized consideration of the Timber Ridge redevelopment plan as a component of the overall agreement between the two parties. The proposal included the construction of 316 units for a total of 1,264 deed -restricted beds. Lincoln Properties Southwest representative Jeff Courtwright assured Council there would not be a windfall profit on the proposed project. "Only a project returning 30% is considered a windfall and 20% is projected for our Timber Ridge proposal." Daly asked for an updated pro -forma for the project. "One -hundred -thousand dollars in earnest money on a $107,000,000 project doesn't seem like a lot of commitment... We expected a draft contract from you to examine this evening." Masinter explained $3 to $4 million would be spent to go through with the redevelopment process. Courtwright said he rarely puts down more than 1 % of the purchase price of the property when undertaking a project. Daly said the town should own the architectural drawings if the project does not go forward. Daly clarified that 100% of the property would be deed restricted workforce housing. Masinter reported Vail Resorts and Vail Valley Medical Center had shown interest in master leasing a large number of the apartments. While discussing pro -forma development and project specifications, Courtwright said, "It takes away our ability to be flexible to the market at the time... Making commitments to specific numbers makes me nervous." Newbury encouraged renting or selling units first to those on the town's master resale lottery list. Masinter then clarified the project would require a construction use tax exemption. Cleveland, Foley and Daly said they could not support a proposal where the land would be for sale. When referring to the status of the property's deed restriction in the event of a bankruptcy, Mire clarified, "Those types of restrictive covenants generally would not survive foreclosure." During the public comment period, Vail Local Housing Authority (VLHA) member Steve Lindstrom encouraged Council to maintain ownership of the land. "Let's look long-term and then figure out what to do about it." Paul Rondeau asked how the developer would fulfill his employee housing requirement for the LionsHead parking structure proposal if the Timber Ridge proposal did not materialize. Mire said the applicant would simply 4 have to conform to Vail's current zoning laws. Kaye Ferry spoke in support of not selling the property and only allowing Vail employees to live in the project. She then spoke in favor of controlling rents. Tom Steinberg encouraged Council to not sell the property. Gwen Scalpello said she was afraid the developer was driving the train. Representing the Vail Village Homeowners Association, Jim Lamont encouraged project flexibility. "I think it would be disingenuous for Council to make a deal without releasing an appraisal... Perhaps we should work on a new deal based on a different reality ... This deal has gone stale." Michael Hecht spoke in support of retaining ownership of the property. "You must reopen the project to the RFP process on a very broad basis." Cleveland said the property appraisal would be released to the public prior to any closing on the parcel. Rogers spoke in support of master planning the property. Hitt said public sentiment supported maintaining ownership of the land. Daly said he was uncomfortable with the process as he had become involved mid -stream. He then commented he could not support a proposal where the land would be sold. Newbury encouraged Council to explore the possibility of a land lease. Foley said the number -one priority for the town is the strategic housing plan. "What do we want to do for our community... How can we achieve that?" Cleveland finished the conversation by stating "I think this project is dead ... Nobody knows what the long term impacts will be for Vail ... I think we would be foolish to sell the land." Rogers moved to discontinue negotiations with Open/Hillwood/Lincoln Properties Southwest with Foley seconding. The vote was 6 to 1 in favor with Gordon opposed. Gordon then encouraged taking a site visit to Timber Ridge so they could inspect current living conditions. The seventh item on the agenda was a Eagle River Water and Sanitation District (ERWSD)/ Town of Vail Joint Project IGA. Town Engineer Town Kassmel reported ERWSD is replacing the water and sewer lines in Beaver Dam Road and Beaver Dam Circle this year. "The town needs to complete budgeted drainage and road improvements along Beaver Dam Road and Beaver Dam Circle. It is in the best interest of both the town and ERWSD to complete the projects simultaneously using one contractor. The town and ERWSD have been working on the construction drawings for these projects and plan to open public bids on March 26th. It is in both agencies' best interest to have ERWSD hold the contract with the selected contractor and complete all of the improvements and have the Town of Vail reimburse ERWSD for the town's drainage and roadway improvements. This project has been budgeted within the Capital Street Maintenance Budget." Newbury moved to direct staff to enter into an Inter -Governmental Agreement between the ERWSD and the Town of Vail once construction bids have been reviewed and a contractor has been selected by ERWSD with Daly seconding. The motion passed unanimously, 7-0. The eighth item on the agenda was an appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail PEC's and the Town of Vail DRB's respective approvals of a major exterior alteration application, based upon Section 12-713-7, Exterior Alterations or Modifications, and Chapter 11, Design Review, Vail Town Code, to allow for a remodel and addition to the existing Rucksack Condominiums Building and Scott Building (aka the "Bridge Street Building"), located at 288 Bridge Street, part of Lot C and Lot D, Vail Village Filing 1. Ruther stated that according to written requests from the Appellant and the attorney representing the Bridge Street Building, LLC., (developer), staff requested Council table the public hearing to consider the above referenced appeal to their regular meeting of April 1, 2008, in order to allow the two parties to work toward a mutually agreed upon resolution of design related issues being appealed. On March 4, 2008, Council voted unanimously to table the public hearing to consider the aforementioned appeal to their regularly scheduled meeting of March 18, 2008. Rogers moved to table the item until April 1 with Daly seconding. The motion passed unanimously, 7-0. The ninth item on the agenda was the First reading of Ordinance No. 5, Series of 2008, an ordinance approving a major amendment to Special Development District (SDD) No. 4, Cascade Village, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the development of a mixed use development, located at 1276 Westhaven Drive (Cornerstone site). According to written requests from the applicant, LO Westhaven, Inc., Staff requested Council table the public hearing to consider first reading of Ordinance No. 5, Series of 2008, to their regular meeting of April 1, 2008. On January 28, 2008, the PEC voted unanimously to forward a recommendation for approval, with conditions, of an application for a major amendment to Special Development District No. 4, Vail Cascade, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the development of the Cornerstone Site. On February 19, 2008, the Vail Town Council held a public hearing to consider Ordinance No. 5, Series of 2008, an ordinance approving a major amendment to SDD No. 4, Cascade Village, on first reading. At that meeting Council voted unanimously to table the public hearing to their regularly scheduled meeting of March 18, 2008. The applicant has submitted a subsequent request to table the hearing once more. Newbury moved to table the item until April 15 with Daly seconding. Foley said he wanted to know the status of Cascade Village's employee housing obligations. The motion passed unanimously, 7-0. The tenth item on the agenda was the Second reading of Ordinance No. 4, Series of 2008, an ordinance amending Section 12-14-20, Commercial Core Construction, Vail Town Code, to allow for the extension of the commercial core temporary construction signage for businesses. On May 3, 2005, the Town Council adopted Section 12-14-20, Commercial Core Construction, Vail Town Code, through Ordinance No. 10, Series of 2005. These regulations facilitated the installation of temporary construction mitigation signs and fencing within the Town's commercial areas to lessen the impact of redevelopment construction on the Town's businesses, residents, and guests. These regulations are scheduled to expire on April 1, 2008. On February 25, 2008, the PEC voted 7-0-0 to forward a recommendation of approval for text amendments to extend the approval of the Commercial Core Construction regulations until April 1, 2010. On March 4, 2008, the Town Council approved Ordinance No. 4, Series of 2008, on first reading by a vote of 6-0-0. Staff recommended Council approve Ordinance No. 4, Series of 2008, on second reading. Newbury moved to approve the ordinance with Foley seconding. The motion passed unanimously, 7-0. The eleventh item on the agenda was Adjournment. Newbury moved to adjourn at approximately 10:30 p.m. with Foley seconding. Dick Cleveland, Mayor ATTEST: