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
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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
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