HomeMy WebLinkAbout2009-04-07 Town Council MinutesVail Town Council Meeting Minutes
Tuesday, April 7, 2009
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
Kevin Foley
Margaret Rogers
Andy Daly
Farrow Hitt
Kim Newbury
Staff Members: Stan Zemler, Town Manager
Matt Mire, Town Attorney
Pam Brandmeyer, Assistant Town Manager
The first item on the agenda was Citizen Input.
Vail Chamber & Business Association Director Richard TenBraak introduced himself to
the Council and said he would be willing to help Council in any way.
The second item on the agenda was the Town Manager's Report.
Revenue Update.
Budget and Financial Reporting Manager Kathleen Halloran reported when all sales tax
returns are received for the month of February, collections for the month are expected to
be $2,578,575, down 16% from February, 2008, and 10.4% down from the 2009 budget.
The ski season so far (Nov — Feb) is down 11.3% from last ski season. Inflation as
measured by the consumer price index was flat, or .2% for the month of February
compared to prior year. Use tax collections as of March 31, 2009, total $22,889, a 23%
decrease from this time last year. Full year 2008 collections totaled $608,483.
Construction permit revenue through March 31 totals $172,584, down 56% from 2008,
which is currently pacing with the 2009 budget. The decrease in activity from the prior
year was due to major redevelopment projects underway in 2008. Major redevelopment
projects so far this year make up 76% of the total. Revenue from non -major projects is
down 51 % from 2008. RETT collections through March 31, 2009, total $639,175. This
amount is a 67% decrease from last year due to both major and non -major
redevelopment projects. The 2009 budget currently assumes a 31 % decrease in annual
revenues. At this time last year, the town collected over $1.1 million in RETT from sales
of major redevelopment projects such as Arrabelle, Forest Place, One Willow and the
Vail Plaza. Year-to-date 2009 has seen limited sales from major redevelopment projects
and is down 75%. Collections not related to major projects year-to-date are 23% down
from this time last year. Year-to-date daily sales (from the parking structures) total $3.1
million, up 19% from the first three months of 2008. Parking transactions are flat with
2008.
The third item on the agenda was the Consent Agenda.
a. Approval of 03.03.09 & 03.17.09 Vail Town Council Minutes.
Hitt moved to approve the minutes without amendments with Foley seconding. The
motion passed unanimously, 7-0.
The fourth 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 an existing temporary business office conditional use permit, located at 450
East LionsHead Circle (Treetops Building)/Lot 6, Vail LionsHead Filing 1
Due to a predetermined conflict of interest (Vail Resorts affiliation) Gordon recused
himself from the item. Planner Bill Gibson then explained that on March 17, 2009,
Council called up the PEC's decision by a vote of 3-2-1 (Daly and Rogers opposed,
Gordon recused). The applicant's legal representative Ross Davis asked Council to
approve the extension as the space had not been a successful retail location and the
applicant's tenant had made substantial improvements to the building. Newbury
emphasized, "Why should Vail Resorts get special privilege... Why should they be
different than anyone else?" Hitt said in light of the present economic downturn it would
be prudent to maintain the location as a temporary office space. Hitt moved to uphold
the decision of the PEC with Rogers seconding. Vail Resorts representative Chris
Jarnot said if the appeal were not approved Vail Resorts staff would spread staff
presently located at the TreeTops building into locations throughout Avon and Vail
potentially dislocating local business. Rogers said she felt it was important to maintain
vitality in LionsHead. Foley said it was perturbing that it has taken so long for Vail
Resorts to make good their Arrabelle at Vail Square development improvement
agreements. "The community expected a lot more from Vail Resorts in terms doing what
they said they would do." Cleveland said he thought it was in the best interest of the
community to keep Vail Resorts in town. The motion passed 5-1 with Newbury opposed.
Newbury explained she did not believe seven years in one location should be
considered temporary.
The fifth item on the agenda was consideration of an extension to Conditions 1 and 2 of
the North Day Lot Major Exterior Alteration conditions of approval.
Town Attorney Matt Mire asked Council if they would consider a motion to extend the
deadline from April 7th to April 21" on Conditions 1 and 2 of the North Day Lot Major
Exterior Alteration conditions of approval. Mire explained, "The town has given requisite
Major Exterior Alteration development plan approvals for developing the North Day Lot
as a multi -family residential project with employee housing units, together with site and
other ancillary or related improvements. Such approvals were rendered by the town's
PEC on February 9, 2009 (with modified conditions adopted by Council on March 3,
2009), and the DRB on February 18, 2009. The Approved Development Plans provide
for a relocation of the Skier Drop -Off Area. The conditions that the extension is being
requested for are as follows:
The developer shall submit a permanent easement for the public skier drop-off, in
a form satisfactory to the town, which establishes the extent, rights, and privileges
associated with the permanent nine -space, public skier drop off, for review and approval
by no later than April 7, 2009.
2. The developer shall submit a permanent easement for the potential South
Frontage Road access point into the site, in a form satisfactory to the town, as depicted
on Sheet C1.01, dated January 30, 2009, for review and approval by no later than April
7, 2009. "
Due to a predetermined conflict of interest (Vail Resorts Affiliation) Gordon recused
himself from the item and left the Council Chambers. Newbury moved to extend the
deadline to May 5 with Daly seconding. The motion passed unanimously, 6-0.
The sixth item on the agenda was the consideration of an extension to the Development
Improvement Agreement by and between the Town of Vail and OHP Vail One, LLC for the
redevelopment of the LionsHead Parking Structure.
Mire asked Council to consider a motion to either grant or deny a ninety (90) day extension
to the current Development Improvement Agreement (DIA) between the parties. The town
and Open Hillwood Partners (OHP) entered into a DIA on October 16, 2007 for the
redevelopment of the LionsHead Parking Structure (LHPS). The agreement set forth the
rights and obligations of the parties with respect to the proposed mixed use development,
including timeframes, deadlines and target dates for the completion of certain tasks.
Pursuant to the terms of the agreement, the project plan was required to be submitted by
the developer for consideration by Council on or before March 15, 2008. Thereafter, the
OHP requested and was granted an extension of time, to the permitted contract date of
September 15, 2008, for review of the Project Plan. The amendment approved in
September of 2008, provides that if the deed restriction agreement had not been executed
by March 17, 2009, the agreement shall immediately terminate, unless such target date is
extended. The developer submitted a request for extension until June 15, 2009. The
Council took formal action on this item and approved a motion to table this decision at the
regular evening meeting on March 17, 2009. Mire said having the deed restriction removed
did not seem like a likely situation. He then recommended Council terminate the terms of
the original agreement made in 2007. OHP representative Mark Masinter said he did not
want the LHPS to be encumbered by the original agreement. Rogers said it was not fair to
burden the property if the redevelopment of the property was not, "Reasonably coming down
the road." Masinter said he was confident his capital partner maintained a significant
amount of wealth. Daly said it was not prudent to continue to encumber the property. "I
would like to have the ability to build this when the time is right." Masinter responded, "I don't
think I should be kicked to the curb for what is happening in a macro environment."
Gordon said the project was something the community overwhelmingly bought into."
Gordon then emphasized, "We need to keep the process honest, open and transparent.
Gordon then moved to approve the extension of the agreement with Hitt seconding.
Cleveland said he was in favor of completely refashioning an agreement and starting from
scratch. He then asked for annual compensation for OHP's right to encumber the town.
Hitt commented, "Lets get some sort of agreement in place ... Masinter has done everything
the Council or community has asked of him." During a pause for public comment, local
hotelier Rob Levine spoke in agreement of Hitt's comments. Former Vail Council Member
Greg Moffet stated, "OHP has been a paragon of good faith... The last thing you want to do
in this economy is hang a 'closed' sign on this town." Rogers said the "devil's going to be in
the details" if the new agreement gets done. The motion passed 6-1, with Daly opposed.
The matter will be seen again by Council during the second meeting in June.
The seventh item on the agenda was the first reading of Ordinance No. 9, Series of
2009, an Ordinance Amending Title 1, Administration, Vail Town Code by the Addition if
a New Section, "Restitution Orders" to Chapter 4, General Penalty.
Mire explained the Vail Municipal Court requires the ability to impose restitution in criminal
actions where a defendant has been adjudged guilty for violating an ordinance of the town
for any actual damage or loss caused by the offense or infraction for which the conviction or
judgment of liability was had. The victim of a crime is entitled to be compensated for his/her
losses and hereby finds that it is in the best interest of the citizens of the town to revise the
Town Code by amending Title 1 with the addition of a new subsection, "Restitution Orders"
to Chapter 4, General Penalty. Newbury moved to approve the ordinance with Rogers
seconding. The motion passed unanimously, 7-0.
The eighth item on the agenda was Resolution No. 9, Series of 2009, A Resolution to
Establish the 2009 Employee Housing Fee -in -Lieu for Commercial Linkage and
Inclusionary Zoning.
On April 4, 2007, the Vail Town Council adopted Ordinances Nos. 7 and 8, establishing
Chapter 23, Commercial Linkage, and Chapter 24, Inclusionary Zoning, Vail Town Code.
In accordance with Sections 12-23-5 and 12-24-6, the fee -in -lieu for each employee to
be housed and for each square foot of employee housing required shall be established
annually by resolution of the Vail Town Council. For 2009, the fee -in -lieu per employee
to be housed is $329,206 and $398.65 per square foot. Rogers moved to approve the
resolution with Gordon seconding. Daly asked to create some predictability in the
resolution and suggested using a three year moving average for the median price per
square foot for Vail's real estate. Rogers said she thought the formula would give
developers the encouragement to build housing themselves as opposed to the town
having to provide it. The motion passed, 7-0.
Zemler explained Colorado Senator Mark Udall would be speaking in Vail the next
afternoon. He then suggested Udall might mention some recent legislation concerning
approved uses of leased United States Forest Service ski areas. He recommended
Council not comment but rather allow the Colorado Association of Ski Towns (CAST)
comment jointly. Vail Resorts representative Chris Jarnot said Vail Resorts was in favor
of the bill that was introduced. "The legislation that is currently in place really doesn't
allow for snowboarding... This is an opportunity to consider different types of activities
particularly during the summer... This is a great step toward adding new great activities
on forest service land." Council agreed to follow Zemler's recommendation.
The ninth item on the agenda was Adjournment.
Newbury moved to adjourn at approximately 7:20 p.m. with Hitt seconding. The motion
passed unanimously, 7-0.
Dick Cleveland, Mayor
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Lorelei Donaldson, Town Clerk `'••..,.i.••,aQ