TC Resolution 20-01 Approving the Fee-In-Lieu Requirement for the Fractional Remainder of the Employee Housing Mitigation Requirementi
Avon
COLORADO
TOWN OF AVON
RESOLUTION 20-01
APPROVING THE FEE -IN -LIEU REQUIREMENT FOR THE FRACTIONAL
REMAINDER OF THE EMPLOYEE HOUSING MITIGATION REQUIREMENT
WHEREAS, the Town of Avon (the "Town") requires Employee Housing Mitigation for certain
new development pursuant to Chapter 7.20.100, Employee Housing Mitigation, Avon Municipal
Code;
WHEREAS, Section 7.20. 1 00(f)(5) requires Town Council to approve a resolution updated
every two (2) years for any fractional remainder of the Employee Housing Mitigation
requirement;
WHEREAS, the Avon Comprehensive Plan strives to meet a diverse range of housing types to
serve all segments of the population, including the following policy directives:
Policy E.1.1: Establish policies and programs, which address housing needs that are
attainable to different Area Median Income (AMI) ranges. Evaluate the mitigation rate
required of development.
Policy E.1.3: Provide attainable housing through alternative means, including but not limited
to: payment -in -lieu, land dedication, regulatory requirements, deed restrictions, waiver of
development and building fees, and public-private partnerships that reduce the price of units.
WHEREAS, growing the inventory of deed restricted homeownership is a primary goal of the
Town's Housing Plan;
WHEREAS, the Avon Community Housing Plan seeks "no net loss of units in the 80%-120%
AMI range" as sites redevelop, including securing new funding sources such as increased linkage
fees;
WHEREAS, the Avon Town Council finds that targeting 80% AMI for the fee -in -lieu formula
is appropriate in order to strengthen the Town's Affordable Housing Fund and leverage
Community Housing projects with public-private partnerships;
WHEREAS, the Avon Town Council finds that developing or otherwise providing actual units
fulfills the primary need of the housing plan, but, from time to time, that mathematically, a
fractional remainder may result as a result of the calculation; and
WHEREAS, the fee -in -lieu is only permitted for the fulfillment of the Employee Housing
Mitigation requirement generated totaling less than 1.0 employee.
Resolution 20-01, Approving Fee -In -Lieu Requirement for Fractional Remainder of Employee Housing Mitigation
Page 1 of 2
NOW THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Avon,
Colorado that Exhibit A — Fee -In -Lieu Requirement for the Fractional Remainder of the
Employee Housing Mitigation Requirement is certified as the fee -in -lieu calculation for the
fractional remainder of development required to be offset by Chapter 7.20. 1 00(f)(5), Avon
Municipal Code.
MOVED, READ AND ADOPTED by the Avon Town Council, on February 25, 2020.
B :)
Sarah Smith-Hymes, MaycN
ATTEST:
Brenda Torres, Town
OF
A Y
Resolution 20-01, Approving Fee -In -Lieu Requirement for Fractional Remainder of Employee Housing Mitigation
Page 2 of 2
Exhibit A to Avon Town Council Resolution 20-01
Fee -In -Lieu Requirement for the Fractional Remainder of the Employee Housing Mitigation
Requirement
The Fee -in -Lieu (FIL) fee is calculated based on the difference between the market price of housing and the
price that is affordable to households with incomes targeted by the Avon Community Housing Plan. The
following method shall be used by the Town Planning Department staff to calculate the FIL and present the
results to Town Council for certification.
Subtracting the maximum affordable housing cost (defined as housing cost not to exceed 30% of gross income
and based on a 30 year fixed mortgage at 5.5% interest with a 10% down payment) for a residential unit at
80% of the area median income for Eagle County, Colorado, as calculated in accordance with the most current
U.S. Department of Housing and Urban Development area median income figures (AMI) from the average
market-based housing cost per square foot (calculated annually and included in the Eagle County Affordable
Housing Guidelines) for a residential unit, with a 15% administrative fee. This is the total payment required
to satisfy one (1) employee equivalent.
To determine the amount of Employee Housing Mitigation that must be provided, the following formulas
shall be used:
Table 7.20-14
Employee Housing Mitigation Formulas
Factor
80% AMI
Area Median Income for Family of 3
$
67,680.00
Maximum Initial Sales Price
$
234,578.00
Average Deed Restricted Unit SF
$
1,221.00
Affordable Price per square Foot
$
192.12
Market Price per Square foot
$
382.30
Administrative Fee
15%
Payment in Lieu per Square Foot
$
218.71
Minimum Square Footage Per Employee Equivalent
400
Payment for One Employee Equivalent
$
87,483.00
To determine the amount of Employee Housing Mitigation that must be provided, the following formulas
shall be used:
Table 7.20-14
Employee Housing Mitigation Formulas
Exhibit A to Avon Town Council Resolution 20-01 — Fee -In -Lieu Requirement
Factor
Calculation
Commercial
F_Size of development—
_T
Leasable square feet
2.8 per 1,000 sq. ft.
rWorkers Required
Rate x sq. ft./1,000
Jobs per Employee
1.2
Workers Generated/1.2
Required mitigation
20% mitigation
Jobs generated x 20%
Exhibit A to Avon Town Council Resolution 20-01 — Fee -In -Lieu Requirement
Size of development
Workers Required
Jobs per employee
Required mitigation
Lodging and Property Management
Lodge/hotel -
0.8/ room;
Prop. management -
0.4/ unit
1.2 jobs per employee
20% mitigation
Residential
# of rooms or # of units
# of rooms x 0.8
# of units x 0.4
Workers Generated/1.2
Workers generated x 20%
Size of development I I # of Dwelling Units
Workers Required .33 per Dwelling Unit # of units x 0.33
Jobs Per Employee I 1.2 Workers Generated/1.2—
Required mitigation 20% mitigation Workers Generated x 20%
All proposed units shall comply with the minimum size requirements shown in Table 7.20-15, and all
applicable design requirements.
Table 7.20-15
Minimum Size of Housing Units
Exhibit A to Avon Town Council Resolution 20-01 — Fee -In -Lieu Requirement 2
Minimum Size of
Number of
Type
Unit (Square
Employees
Footage)
Housed
Studio
� 500
1 1.25
1 bedroom �
� 1.75
750
2 bedrooms
900
2.25
ror
more bedrooms
--
1,225
3.5
Exhibit A to Avon Town Council Resolution 20-01 — Fee -In -Lieu Requirement 2
The total FIL is calculated by subtracting the unit type(s) offset (per Table 7.20-15) from the employee
mitigation required (per Table7.20-14), at the fractional remainder of the requirement (per 7.20.100(f)(5)),
where one employee is credited 400 square feet.
For example, a project with 142 hotel rooms, 4 condo units, and 536 square feet of retail would be required to
offset the equivalent of 19.45 employees, per the table below:
Generator
19.4501
While there are several ways to offset the requirement, a sample method is illustrated below:
Emplovee Mitigation Credited
2 br @
1 br @
Studio
Fractional
Emp.
3 br @
2.25
Emp.
@ 1.25
Jobs/
Total Emp.
Mitigation
Mitigation
USE
Units
Rate
Jobs
Emp.
Generated
Rate
Required
Lodge/Hotel
142
.8/Rm
113.6
1.2
94.7
20%
18.93
Prop.
=19.4501-
=.95 *
Management
4
.4/Rm
1.6
1.2
1.3
20%
0.27
Commercial SF
536
2.8/1000
1.5
1.2
1.3
20%
0.25
19.4501
While there are several ways to offset the requirement, a sample method is illustrated below:
Emplovee Mitigation Credited
Exhibit A to Avon Town Council Resolution 20-01 — Fee -In -Lieu Requirement 3
2 br @
1 br @
Studio
Fractional
3 br @
2.25
1.75
@ 1.25
Total
Remainder
Employee
3.5 Emp
Emp. /
Emp. /
Emp. /
Employees
of
Equivalent
Payment in
/ unit
unit
unit
unit
Housed
Employee
Factor
Lieu Required
4 units,
=19.4501-
=.95 *
14
2 units,
(14+4.5)=
$87,483=
Emp.
4.5 Emp.
18.5
0.9501
$87,483.46
$83,121.46
Exhibit A to Avon Town Council Resolution 20-01 — Fee -In -Lieu Requirement 3