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HomeMy WebLinkAbout2008-10-07 Town Council MinutesVail Town Council Meeting Minutes Tuesday, October 7, 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 Mark Gordon Farrow Hitt Kevin Foley Kim Newbury Margaret Rogers Andy Daly Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was Citizen Input. Local restaurateur Brian Nolan complimented the Commission on Special Events (CSE) for its good work and Council for its funding of the CSE. Kaye Ferry questioned why a second Request for Proposals for the redevelopment of Timber Ridge had not been issued. The second item on the agenda was a Community Planning Month Proclamation. Newbury read into the record a Community Planning Month Proclamation. Newbury moved to approve the proclamation with Rogers seconding. The motion passed unanimously, 7-0. The third item on the agenda was the Town Manager's Report. ➢ Revenue Update, Budget and Financial Reporting Manager Kathleen Halloran reported that when all sales tax returns are received for the month of August, collections for the month are expected to be $1,318,843, up 13.4% from August, 2007. Year-to-date sales tax collections of $14.7 million are up 6.8% from 2007. For comparison, inflation as measured by the consumer price index was up 5.4% for the month of September, and up 4.2% for the first half of 2008 compared to prior year. Use tax collections began as of January 1, 2008. As of September 30, collections total $539,950 of unbudgeted revenue. Construction permit revenue currently totals $1.9 million, down 15% from this time last year. However, due to conservative budgeting collected revenue currently exceeds budget by $607,000. The decrease in activity from the prior year is due to both major and non - major redevelopment projects. Major redevelopment projects make up 76% of the total, and construction permit fee revenue from those projects is up by 12% from prior year. Revenue from non -major projects is down 24% from this time last year. RETT collections through September 30, 2008, total $5.9 million. This amount is a 33% increase from this time last year primarily due to recent sales of major redevelopment projects. The overall real estate market in Eagle County is down 27% in sales dollars and down 43% in sales transactions as of July, 2008. Major redevelopment projects such as Arrabelle at Vail Square, Forest Place, One Willow Bridge and Vail Plaza account for 61 % of year-to-date 2008 collections. This is significantly higher than the 25% from September 2007, and is the reason Vail's RETT revenue is performing much better than the rest of the county. RETT collections from property transfers not related to major redevelopment projects dropped by 31 % year-to-date as of September, 2008 compared with 2007. This is more in line with the sales decrease across the county. ➢ 2008 Bond Issue Update. Finance Director Judy Camp reported the town's credit rating for bond issuance has been upgraded. "I think this is something we can all be proud of." While discussing the current municipal bond market Camp commented, "There have been no municipal bonds sold in the State of Colorado in the last three weeks... There is simply no market for them." ➢ Timber Ridge Bonds Update. Camp reported the recent credit market turmoil is having an impact on the resale of those funds. ➢ Update on Collection of Use Tax Town Attorney Matt Mire clarified why the town -collected construction use tax revenues were collected at the beginning of a construction project. Mire explained it was a matter of state law. Daly expressed concern collection of the tax at the beginning of the project was not prudent to builders/developers. ➢ Chamonix Property Planning Update. Community Development Director George Ruther explained Economic and Planning Services Inc. had been hired to provide more precise cost estimates. Gordon asked if several different mixes of unit types would be contemplated in the scenarios. Ruther clarified that would happen. Hitt then asked about the status of the LionsHead kiosk. Ruther explained Vail Resorts intended to operate the kiosk as a newsstand and information center during the upcoming ski and summer season. If Vail Resorts chooses not to operate, the facility the town could take over operations or the kiosk could be removed. "We are doing what was originally expected or contemplated by the town and Vail Resorts... We have greater assurances that it will be operated or removed than we have in the past." Zemler said, "They will fund us if they fail to operate it." The fourth item on the agenda was the Consent Agenda. Approval of 9.02,08 and 9.16.08 Minutes Gordon moved to approve the minutes without amendment with Rogers seconding. The motion passed unanimously, 7-0. The fifth item on the agenda was an Appointment to the Eagle County Open Space Advisory Council (OSAC). Following the resignation of Greg Moffet to the OSAC in March 2008 as he was appointed to the Eagle County Planning Commission, staff has filled an interim position on OSAC. Staff requested Council recommend either a Councilmember or full time staff member to represent the Town of Vail on the OSAC. Daly moved to appoint Cleveland as the town's representative with Newbury seconding. The motion passed unanimously, 7-0. The sixth item on the agenda was an Art in Public Places (AIPP) Board Appointment. Council was asked to appoint one applicant to the AIPP to complete the term which ends March 31, 2011. The Board is made up of members who have demonstrated expertise in architecture, art criticism, art education, art history, fine arts, graphic arts, interior design, landscape architecture, town planning/community development or other art/design related backgrounds not specifically mentioned, or who have demonstrated a strong interest in the visual arts and/or civic improvement. Board members shall meet one of the following requirements for at least one year: A resident of the Town of Vail and/or Owner of property within the Town of Vail Duties and functions of the Art in Public Places Board include: a, Implementation of the AIPP policies and selection procedures. This specifically includes deciding the appropriate selection process for public art projects, appointing selection panels for specific projects, and approving the final selection of artist or artists for a project. b. Acquiring public art by purchase, donation or other means for Vail's permanent Art in Public Places collection. C. Overseeing the maintenance and preservation of art works displayed in public areas. d. Assisting the Art in Public Places coordinator in obtaining grants and donations to fund public art projects. e. Promoting public art through a public education program that will further community appreciation and understanding of the visual arts. f. Publicizing Art in Public Places projects and recognizing the artist(s) involved with the project. g. Evaluating the Art in Public Places program and commitment of board members annually and setting program goals on a five year basis. Earlier Council in the day Council interviewed one applicant for the appointment. Newbury moved to approve Scott DeWitt with Rogers seconding. The motion passed unanimously, 7-0. The seventh item on the agenda was a Regional Air Service Update. Air Planners representative Kent Myers provided Council with an update on the "Fly Vail" summer and fall flight programs. He then explained that the Eagle County Regional Airport's (EGE) altitude restricted the distance of flights leaving the airport. Myers emphasized American Airlines and United are "big partners with Vail." He then reported fall air traffic for 2008 is tracking 35% behind last year. Myers also discussed funding requirements (guarantees) entailed with maintaining air service to Minneapolis (Northwest Airlines) during the 2008-09 ski season. The eighth item on the agenda was an appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Planning and Environmental Commission's approval of a request for a final review of an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for the extension of a conditional use permit to allow a temporary business office, located at 450 East LionsHead Circle (Treetops Building). Due to a predetermined conflict of interest (Vail Resorts affiliation) Gordon recused himself from the item and left the Council Chambers. Planner Bill Gibson explained that on August 25, 2008, the PEC approved, with conditions, an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for the extension of a conditional use permit to allow a temporary business office, located at 450 East LionsHead Circle (Treetops Building)/Lot 6, Vail LionsHead Filing 1, and setting forth details in regard thereto, by a vote of 5-0-1 (Pierce recused). The Vail Town Council "called -up" this PEC's action at its September 2, 2008, public hearing by a vote of 5-0-2 (Cleveland and Gordon opposed). Please see the following item for a review of the discussion regarding this item. The ninth item on the agenda was an appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Planning and Environmental Commission's approval of a request for a final review of an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for the extension of a conditional use permit to allow for a temporary business office located at 616 West LionsHead Circle (Concert Hall Plaza Building). Due to a predetermined conflict of interest (Vail Resorts affiliation) Gordon recused himself from the item and left the Council Chambers. On August 25, 2008, the PEC approved, with conditions, an amendment to an existing conditional use permit, pursuant to Section 12-16-10, Amendment Procedures, Vail Town Code, to allow for the extension of a conditional use permit to allow for a temporary business office located at 616 West LionsHead Circle (Concert Hall Plaza Building)/Lot 1, Vail LionsHead Filing 4, by a vote of 5-0-1 (Pierce recused). Council "called -up" this PEC's action at its September 2, 2008, public hearing by a vote of 5-0-2 (Cleveland and Gordon opposed). Hitt clarified first floor locations have traditionally only allowed for retail space (as opposed to an office use). Vail Mountain Chief Operating Officer Chris Jarnot introduced the Vail Mountain management team. Jarnot said Vail Resorts has 61 employees working in the two office spaces. Jarnot said future office space is expected to be located in the proposed Ever Vail development to be located in the West LionsHead area. Daly said he believed the uncertainty of the Ever Vail construction timing made it an unacceptable option for future office space and encouraged Vail Resorts to include office space in its proposed North Day Lot employee housing development. Jarnot said if they were not able to remain in their current location Vail Resorts would, "break up and move farther and farther away... We are subject to your direction at this point." Daly asked why the North Day lot was no longer on a list of alternatives. Jarnot responded, "Ever Vail is a more appropriate place for office space...we are building office space there anyway so we might as well build some for ourselves... For us long-term that seems to be the best plan." Hitt clarified Vail Resorts had no immediate plans for other potential office space locations. Rogers moved to uphold the two decisions of the PEC with Daly seconding. "If it's not broken don't try to fix it." LionsHead Merchant Association representative Keith Odza spoke in support of keeping the Vail Resorts employees in Vail. "It's important to keep everything in that regard here," Former Vail Mayor Bob Armour clarified the PEC's recommendation would be reviewed in May 2009. "I appreciate that the vitality in that area is improving." Local restaurateur Bryan Nolan spoke in support of the motion. Kaye Ferry said that in the past retailers had been interested in the discussed locations. "If you don't like this ordinance, change it ... or it should be applied fairly across the board...Vail Resorts has had an advantage that nobody else has." Vail Chamber and Business Association Representative Michael Norton said his constituents wanted Vail Resorts to remain in their present location. Hitt clarified Vail Resorts had occupied the space for three years and said he believed the Concert Hall Plaza area would be seeing more pedestrian traffic due to redevelopment (potentially increasing the viability of retail business). "My concern is that we have a temporary conditional use that doesn't have an end to it... We need to define temporary... I think our problem lies with that ordinance... We need to come to a definitive cut-off for temporary uses." Daly stressed the importance of ski operations and the necessity for them to be close to Vail Mountain. He also said personnel fragmentation jeopardizes the ability to provide quality services. Newbury commented, "These unlimited renewals are creating a de facto permanent office space." She then said a definition of temporary in regard to a conditional use needed to be reviewed. "It does not meet the goals and objectives of the town to have office space on the first floor." Cleveland noted, "I am deeply troubled by the complete lack of long-term planning on the part of Vail Resorts." He then said it would not be unreasonable to ask Vail Resorts for the sales tax lost due to the location's use as office space. The two motions passed 5-1-1, with Foley opposed. The tenth item on the agenda was a request for review of an encroachment agreement for constructed improvements on Town owned property associated with the Manor Vail Lodge redevelopment. As a result of performing a survey to create a condominium plat for Manor Vail Lodge new dwelling units, it was discovered that several decks/walkways on the rear of Building C encroach on to Town property. On June 21, 2005, Council unanimously adopted Ordinance No. 14, Series of 2005, an ordinance repealing and reenacting Ordinance No. 24, Series of 2004, establishing Special Development District (SDD) No. 38, Manor Vail Lodge. The purpose of Ordinance No. 24, Series of 2004, was to adopt the development plan for the redevelopment of the Manor Vail Lodge which included new dwelling units, a subterranean parking structure, new facades, and public improvements which were to serve as public benefits for the deviations from the High Density Multiple Family zone district. The Community Development Department recommended Council instruct staff to create and record an encroachment agreement for constructed improvements on Town property associated with the Manor Vail Lodge redevelopment in a form satisfactory to the Town Attorney. Rogers asked what the Manor Vail redevelopment had provided in terms of public benefit. East West Partners representative Jim Adams explained the scenario creating the encroachment. Gordon asked Mire what the town's remedies were for the encroachments. Mire said he would have to research the matter to provide a comprehensive answer. Zehren and Associates representative Brian Sipes explained the architectural reason the project encroached on town property. "We wanted the project all along to be a good fit." Hitt moved to direct the Town Attorney to enter an encroachment agreement with the East West Partners with Foley seconding. Hitt then clarified that a lot of time and effort went into the initial review of the project and emphasized that the land transfer remained in the town's best interest. He also emphasized the encroachment was no fault of the developer. Rogers commented, "I can't just see myself giving away town property for nothing...I think there are some things you can do to show good faith." She then recommended the developer volunteer to renovate a structure referred to as the "art shack" in Ford Park. Gordon agreed the art shack renovation would serve as a fare settlement. Newbury stated, "I feel that if we are trying to get something out of this we are being punitive." Daly said the town can not tolerate poor surveys and encroachments onto town owned land. The motion passed 4- 3, with Rogers, Gordon and Daly opposed. The eleventh item on the agenda was the First reading of Ordinance No. 16, Series of 2008, an ordinance requesting a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow for the rezoning of a 430 square foot parcel of land from High Density Multiple -Family (HDMF) District to General Use (GU) District. On August 11, 2008, the PEC voted 5-0-0 to forward a recommendation of approval for a zone district boundary amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code. Daly moved to approve the ordinance with Hitt seconding. The motion passed unanimously, 7-0. The twelfth item on the agenda was the First reading of Ordinance No. 21, Series of 2008, for prescribed regulations amendments to Section 14-10-7, Outdoor Lighting, Vail Town Code, to allow for amendments to the outdoor lighting standards. Planner Bill Gibson reported the purpose of the proposed amendments is to clarify the Town's outdoor lighting standards and to simplify the implementation and enforcement of the Town Code. The proposed amendments were also intended to update the outdoor lighting standards to better achieve "green" (i.e. environmentally sensitive and energy efficient lighting fixtures and techniques) and "dark sky" (i.e. minimizing light pollution) policies. In its August 19, 2008, public hearing, Council held a work session to discuss the proposed amendments. At the time Council was generally supportive of the "green" and "dark sky" policies incorporated in the proposed amendments. On August 25, 2008, the PEC voted 6-0-0 to forward a recommendation of approval to Council for the proposed amendments. Daly clarified currently existing lighting fixtures would be grandfathered into compliance. Daly then moved to approve the ordinance with Newbury seconding. During a pause for public comment, Gwen Scalpello spoke against construction sites being exempt from construction sites. "Lighting guidelines in this ordinance should apply to construction sites." Council agreed to address construction lighting. Gordon said it was nice to be moving in the direction of a green building code, The motion passed unanimously, 7-0. The thirteenth item on the agenda was the second reading of Ordinance No. 19, Series of 2008, An Ordinance making supplemental appropriations to the Town of Vail General Fund, Capital Projects Fund, Real Estate Transfer Tax Fund, Heavy Equipment Fund, Dispatch Services Fund and Debt Service Fund of the 2008 Budget for the Town of Vail, Colorado; and authorizing the expenditures of said appropriations as set forth herein. Budget and Financial Reporting Manager Kathleen Halloran introduced the item. She explained budgeted revenues would be increased by $3.9 million and budgeted expenditures would increase by $2.2 million. Foley inquired about the exclusion of a proposed green house. Public Works Director Greg Hall said the project was under review for potential value engineering. Hitt said he appreciated the project being revisited. Foley moved to approve the ordinance with Hitt seconding. The motion passed unanimously, 7-0. The fourteenth item on the agenda was Resolution No. 21, Series 2008, A Resolution Approving the Purchase of Property in the Town of Vail Legally Described as Gore Range Condominium Unit #3-W, Eagle County, Colorado with a Physical Address of 2189 Chamonix Lane, Vail Colorado. The Town of Vail enacted employee housing requirements for new development. Fee -in - lieu is one of four methods available to mitigate the requirement. To date, the town has collected $417,000 in employee housing fee -in -lieu. Fee -in -lieu dollars are to be spent establishing new employee housing units within the Town of Vail. The town will be using these funds to purchase Gore Range Condominiums #3-W. The Council considers it in the interest of the public health, safety and welfare to purchase property legally described as Gore Range Condominium Unit #3-W, Eagle County, Colorado with a physical address of 2189 Chamonix Lane, Vail Colorado (the "Property") for the amount of $309,000.00. Please see below for the approving motion and vote. The fifteenth item on the agenda was Resolution No. 22, Series 2008, A Resolution Approving the Purchase of Property in the Town of Vail Legally Described as Gore Range Condominium Unit #2-E, Eagle County, Colorado with a Physical Address of 2189 Chamonix Lane, Vail Colorado. The Town of Vail enacted employee housing requirements for new development. Fee - in -lieu is one of four methods available to mitigate the requirement. To date, the town has collected $417,000 in employee housing fee -in -lieu. Fee -in -lieu dollars are to be spent establishing new employee housing units within the Town of Vail. The town will be using these funds to purchase Gore Range Condominiums #3-W. The Council considers it in the interest of the public health, safety and welfare to purchase property legally described as Gore Range Condominium Unit #2-E, Eagle County, Colorado with a physical address of 2189 Chamonix Lane, Vail Colorado (the "Property") for the amount of $290,000.00. Rogers moved to approve Resolutions No. 21 and No. 22, Series of 2008 with Newbury seconding. The motion passed unanimously, 7-0. Daly clarified appraisals of the properties had been carried out. The sixteenth item on the agenda was Adjournment. Newbury moved to adjourn with Foley seconding with the Council voting 7-0 to end the meeting. Dick Cleveland, Mayor ATTEST: /"j L 1 Lorelei Donaldson, Town Clerk