Loading...
24.09.16 DDA Board Packet FINAL_____________________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG MEETING NOTICES ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AVON ELEMENTARY AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK MIGUEL JAUREGUI CASANUEVA AT 970-748-4001 OR EMAIL MJAUREGUI@AVON.ORG WITH ANY SPECIAL REQUESTS. DOWNTOWN DEVELOPMENT AUTHORITY MEETING AGENDA Monday, September 16, 2024 MEETING BEGINS AT 3:00 PM DOWNTOWN DEVELOPMENT AUTHORITY PUBLIC MEETING BEGINS AT 3:00 PM 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA Public comments are limited to three (3) minutes. The speaker may be given one (1) additional minute subject to Board approval. 5. NEW BUSINESS 5.1. Resolution 24-01: Supporting Town of Avon Ballot Issue 2C - Use Tax on Construction Materials to Benefit Community Housing (Chief Financial Officer Paul Redmond) 5.2. Work Session: Review of Community Arts Center Concept at 351 West Benchmark Road (CASE Manager Danita Dempsey and Town Manager Eric Heil) 6. MINUTES 6.1. Approval of August 5, 2024 Downtown Development Authority Meeting Minutes (Chief Administrative Officer Ineke de Jong) 7. ADJOURN Public Comments: Avon DDA agendas shall include a general item labeled “Public Comment” near the beginning of all Board meetings. Members of the public who wish to provide comments to the Board greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Board in advance of the Board meeting. The Chairperson shall permit public comments for any action item or work session item and may permit public comment for any other agenda item, and may limit such public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. Article VI. Public Comments, Avon Downtown Development Authority Simplified Rules of Order 970.748.4088 predmond@avon.org TO: Avon Downtown Development Authority FROM: Paul Redmond, Chief Finance Officer RE: Resolution 24-01 Support of the Use Tax on Construction Materials Ballot Question DATE: September 13, 2024 SUMMARY: Resolution 24-01 expresses the Avon Downtown Development Authorities support of Ballot Issue 2C, the Use Tax on New Construction question placed on the November 5, 2024, ballot  BACKGROUND: Avon Town Council Ordinance No. 24-12 Use Tax on Construction Materials was approved by Council at the August 27, 2024, Council Meeting, at the second and final reading. Ordinance No. 24-12 referred a ballot question to the November 5, 2024, election. The Ordinance also amended the Avon Municipal Code to establish Chapter 3.09, Use Tax on Construction Materials. The Use Tax would only apply to new construction and includes an exemption of $125,000 in total building materials value and limits the exemption value of building materials for building permits over a three-year period. SAMPLE MOTION: “I move to approve Resolution 24-01 Supporting Town of Avon Ballot Issue 2C, the Use Tax on Construction Materials to benefit Community Housing”. The Towns Clerks office will post this Resolution 24-01 in the following locations: Avon Town Hall: 100 Mikaela Way, Avon Colorado, 81620 Avon Public Library: 200 Benchmark Rd, Avon Colorado, 81620 Avon Recreation Center: 90 Lake St, Avon Colorado, 81620 Thank you, Paul ATTACHMENT A – RESOLUTION 24-01 ATTACHMENT B – AVON TOWN COUNCIL ORDINANCE NO. 24-12 Resolution No. 24-01 September 16, 2024 Page 1 of 1 RESOLUTION 24-01 SUPPORTING TOWN OF AVON BALLOT ISSUE 2C USE TAX ON CONSTRUCTION MATERIALS TO BENEFIT COMMUNITY HOUSING WHEREAS, the Colorado Fair Campaign Practices Act expressly authorizes local governments to pass a resolution taking a position of advocacy and reporting the passage of, and distributing, the resolution through established and customary means by C.R.S. §1-45- 117(1)(b)(III), and WHEREAS, the Avon Downtown Development Authority finds that Ballot Issue 2C will promote the sustainability of the Avon community by asking registered Avon voters to impose a 4% use tax on construction materials to fund community housing as part of the General Election on November 5th, 2024; and WHEREAS, the Authority acknowledges that there is a dire need for community housing and Avon Town Council has declared the development and acquisition of workforce housing to be the number one priority; and WHEREAS the imposition of the 4% use tax on construction materials is not a new tax but rather replaces the existing 4% sales tax, and allows for the collection of the tax on construction materials purchased outside Avon and dedicates the new revenue to support and secure the additional funding needed to make vital improvements for local community housing; and WHEREAS, the Town of Avon has adopted the Community Housing Plan in 2018 to help address the housing challenges with dedicated Real Estate Transfer Tax Revenues to programs such as the establishment of a homebuyer assistance program for Avon residents, potential use of town owned land for affordable housing, as well as secured state grants for regional housing planning efforts; and NOW, THEREFORE, BE IT RESOLVED, the Avon Downtown Development Authority hereby supports and endorses Town of Avon Ballot Issue 2C for Use Tax on Construction Materials to benefit community housing in the upcoming November 5, 2024 General Election, as a measure that will improve funding for community housing and promote increased livability, sustainability and economic vitality for Avon and the Eagle County region. ADOPTED SEPTEMBER 16, 2024 BY THE AVON FINANCE COMMITTEE By: Attest:___________________________ Finance Committee Miguel Jauregui Casanueva, Town Clerk ATTACHMENT A Avon COLORADO ORDINANCE NO.24-12 REFERRING A BALLOT QUESTION REGARDING USE TAX ON CONSTRUCTION MATERIALS TO THE NOVEMBER 5, 2024 ELECTION AND AMENDING THE AVON MUNICIPAL CODE TO ESTABLISH CHAPTER 3.09 USE TAX ON CONSTRUCTION MATERIALS WHEREAS, pursuant to C.R.S. §31- 15-103 and §31-15-104, and pursuant to the home rule powers of the Town of Avon ("Town"), the Avon Town Council ("Council") has the power to make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of its inhabitants; and WHEREAS, Council finds that the referral of a 4% Use Tax on Construction Materials to the Avon electorate is appropriate and beneficial for the Avon community in order to reduce the administrative burden of Town and builders, to adopt a use tax that matches the Town's sales tax, to increase the collection of revenues related to new construction for general government purposes and to increase revenues in the Village (at Avon) for the purpose of accelerating the satisfaction of the Town's tax credit obligations; and WHEREAS, the Council finds that adoption of a use tax will promote the health, safety and general welfare of the Avon community; and, WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town Council desires to comply with the requirement of Section 6.5(d) of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence and that approval of this Ordinance on first reading does not constitute a representation that the Town Council, or any member of the Town Council, has determined to take final action on this Ordinance prior to concluding the public hearing on second reading. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Chapter 3.09 Enacted. A new Chapter 3.09 - Use Tax on Construction Materials in the Avon Municipal Code, set forth in EXHIBIT A: Chapter 3.09 attached hereto, is hereby enacted subject to voter approval as described in Section 3 of this Ordinance. Section 3. Election and Effective Date. Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax increase provided in this ordinance to the qualified electors of the Town for approval at the regular Town election scheduled for November 5, 2024. Ord 24-12 Use Tax on Construction Materials August 23, 2024 — SECOND READING Page 1 of 2 ATTACHMENT B If approved by a majority of the electors voting thereon, this ordinance shall become effective when the Town Clerk or other designated election official duly files the required certificate of election, or on January 1, 2025, whichever occurs last. Section 4. Ballot Title and Questions. The ballot title and question submitted to the electors shall be as follows: Ballot Title: USE TAX ON NEW CONSTRUCTION TO FUND COMMUNITY HOUSING Ballot Question: SHALL THE TOWN OF AVON'S TAXES BE INCREASED BY FOUR MILLION DOLLARS ($4,000,000) IN THE FIRST YEAR 2025, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX FOR THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS; AND SHALL SUCH USE TAX REVENUES BE APPROPRIATED FOR COMMUNITY HOUSING; AND SHALL CONSTRUCTION PROJECTS EQUAL TO OR LESS THAN $125,000 IN CONSTRUCTION MATERIALS BE EXEMPT FROM PAYING THE USE TAX; ALL IN ACCORDANCE WITH, AND FURTHER DEFINED BY, TOWN OF AVON ORDINANCE NO.24-12; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WHOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW. INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING by the Avon Town Council on August 13, 2024, and setting such public hearing for August 27, 2024 at the Council Chambers of the Avon Municipal Building, located at 100 Mikaela Way, Avon, Colorado. Phijllips, Mayor ATTEST: Miguel Jauregui ED ON SECOND AND FINAL READING by the Avon T 2024, after conducting a public hearing. ATTEST: Miguel Jan APPROVED AS TO FORM: Nina Williams, Town Attorney Ord 24-12 Use Tax on Construction Materials August 23, 2024 — SECOND READING Page 2 of 2 eva, T Council on ATTACHMENT B EXHIBIT A: Chapter 3.09 — Use Tax on Construction Materials CHAPTER 3.09 — Use Tax on Construction Materials 3.09.010 — Title, Purpose, and Applicability. a) This Chapter shall be known and may be cited as "The Town of Avon Use Tax on Construction and Building Materials." b) The purpose of this Chapter is to raise revenue for the Community Housing Fund. The Town Council find that every person who uses or consumes in the Town any construction and building materials is exercising a taxable privilege. c) Subject only to the exemptions set out at Section 3.09.040, the use tax imposed herein shall apply to any use or consumption in the Town of construction and building materials purchased at retail on or after January 1, 2025. 3.09.020 — Definitions When not otherwise clearly indicated by the context, the following words and phrases, as used in this chapter, shall have the following meanings: Building permit means a permit, issued by the Town, allowing the permit holder to construct, enlarge, repair, move, demolish, or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert, or replace any electrical, gas, mechanical, or plumbing system regulated by the adopted building codes of the Town. A building permit shall not include any permit for demolition or dewatering. Charitable organization means any entity which has been certified as a nonprofit organization under Section 501(c)(3) of the Internal Revenue Code. Construction equipment means any equipment, including mobile machinery and mobile equipment, which is used to erect, install, alter, demolish, repair, remodel, or otherwise make improvements to any real property, building, structure, or infrastructure, whether leased or owned. Construction Materials means tangible personal property which, when combined with other tangible personal property, loses its identity to become an integral and inseparable part of a structure or project including public and private improvements. Construction Materials include, but are not limited to, such things as: asphalt, bricks, builders' hardware, caulking material, cement, concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling equipment, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam, millwork, mortar, oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh, road base, roofing, sand, sanitary sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs and other landscaping materials, wall board, wall coping, wallpaper, weather stripping, wire netting and screen, water mains and meters, and wood preserver. The above materials, when used for forms, or other items which do not remain as an integral and inseparable part of completed structure or project are not construction materials. 1 ATTACHMENT B Construction valuation means the total value of the work, including labor and construction and building materials, for which a permit is issued, including leased construction equipment, electrical, gas, mechanical, plumbing equipment and permanent systems, as determined by the building department or building official. Consumption means the act or process of consuming, and includes waste, destruction, or use. Consumption is the normal use of property for the purpose for which it was intended. Contractor means any person who shall build, construct, reconstruct, alter, expand, modify, or improve any building, dwelling, structure, infrastructure, or other improvement to real property for another party pursuant to an agreement. For purposes of this definition, Contractor also includes subcontractor. Director means the Chief Finance Officer for the Town or such person's designee. Person means any individual, firm, partnership, joint venture, corporation, limited liability company, estate or trust, receiver, trustee, assignee, lessee, or any person acting in a fiduciary or representative capacity, whether appointed by court or otherwise, or any group or combination acting as a unit. Purchase or sale means the acquisition for any consideration by any person of tangible personal property by way of purchase, lease, or rental, including capital leases, installment and credit sales, and lease -purchase, rental or grant of a license to use, which consideration may include money, exchange of property or services, or any other thing of value. Purchase price means the aggregate value in money of anything or things paid or delivered or promised to be paid or delivered by a purchaser to a retailer or any person in the consummation of a retail sale as defined herein, without any deduction therefrom for the cost of the property sold, cost of materials used, labor or service cost, or any other expense whatsoever, and provided that when articles of tangible personal property are sold after manufacture or after having been made to order, the gross value of all materials, labor, service, and profit thereon shall be included in the purchase price; provided that the purchase price shall not include any direct tax imposed by the United States government, the state, or this chapter. Retail Sale or Purchased at Retail means any purchase or sale of tangible personal property, except a wholesale sale or purchase made for taxable resale. Taxpayer means any person obligated to collect and/or pay tax under this Code. Town means the Town of Avon. Use means the exercise, for any length of time, by any person with the Town of any right, power or dominion over tangible personal property or services when rented, leased, or purchased at retail from sources within or with the Town; or tangible personal property used in the 2 ATTACHMENT B performance of a contract in the Town, whether or not owned by the taxpayer. Use also includes withdrawal of items from inventory for consumption. Wholesale sales mean a sale to a licensed retailer, jobber, dealer, or other wholesaler for resale. Sales by wholesalers to consumers, including persons who use or consume construction and building materials, as defined by this Section, are not wholesale sales. Sales by wholesalers to non -licensed retailers are not wholesale sales. Wholesaler means any person selling to retailers, jobbers, dealers, or other wholesalers, for the purpose of resale and not for storage, use, consumption, or distribution. 3.09.030 — Use tax imposed. a) There is hereby imposed and levied in the Town, and shall be collected and paid, a use tax on the privilege of using or consuming within the Town construction and building materials of every kind and form purchased or leased inside or outside the Town. b) The use tax imposed by this Chapter shall be at the rate of four percent (4%) of the cost of construction and building materials used or consumed in the Town, including leased equipment. For purposes of this Chapter, the cost of construction and building materials is deemed to be fifty percent (50%) of the construction valuation. c) Any construction and building material used or consumed on a project which has received all final development review approvals required by Title 7 of the Avon Municipal Code on or before December 31, 2024, shall not be subject to the use tax imposed herein. If any approval expires by its terms after December 31, 2024, such application for development review shall then be subject to the use tax imposed by this Chapter. 3.09.040 — Exemptions. The following are exempt from the use tax imposed by this chapter, provided that the list of exemptions cannot be increased by implication or similarity and the burden of proof is upon the taxpayer to establish an exemption: a) The use or consumption of construction and building materials the sale of which is subject to a retail sales tax imposed by the Town; b) The use or consumption of construction and building materials purchased for resale in the Town, either in their original form or as an ingredient of a manufactured or compounded product, in the regular course of business; c) The use or consumption of construction and building materials by the United States government; by the State, its departments or institutions or political subdivisions thereof in their governmental capacities only; or by the Town; providing, however, that no commercial, industrial or other banking institution, organized or chartered by 3 ATTACHMENT B the United States government, any agency or department thereof, or by the State, shall be considered a governmental institution for the purpose of this exemption; d) The use or consumption of construction and building materials by charitable organizations in the conduct of their regular charitable functions; except that nothing herein contained shall be deemed to exempt use of construction and building material or supplies used by a contractor for the construction of an improvement for a charitable organization; e) The use or consumption of construction and building materials by a person engaged in the business of manufacturing or compounding for sale, profit, or use of any article, substance, or commodity, which construction and building materials enters into the processing of or becomes an ingredient or component part of the product or service which is manufactured, compounded, or furnished, and the container, label, or the furnished shipping case thereof, f) The use or consumption of construction and building materials if a written contract for the purchase thereof was entered into prior to January 1, 2025; g) The use or consumption of construction and building materials required or made necessary in the performance of any construction contract bid, let, or entered into at any time prior to January 1, 2025; h) The storage of construction and building materials; i) A building project or projects, subject to a Town of Avon Building Permit or Permits issued within a three arperiod, with a total ^enstr- ietion valuation building material value of one hundred twenty thousand dollars ($125,000.00) or less; j) The use or consumption of construction and building materials in the Town on which the use tax imposed by this Chapter has already been paid; and k) Any transaction which the Town is prohibited from taxing under applicable law. 3.09.050 — Credit for taxes paid to another taxing authority. a) The Town's use tax shall not apply to the use or consumption of any construction and building materials the sale or use of which has already been subjected to a legally imposed sales or use tax of another statutory or home rule town, city, or city and county equal to or in excess of the use tax imposed herein. b) A credit shall be granted against the Town's use tax in an amount equal to lawful tax previously paid by the purchaser or user to another taxing authority, provided that the amount of credit shall not exceed the amount of use tax imposed by this Chapter. c) The burden of proof is upon the taxpayer to establish the right to any credit claimed. 4 ATTACHMENT B d) It is the intent of this Chapter for Town taxes to be paid at the time a building permit is issued. Once such permit is issued, persons engaged in construction projects in the Town are considered to be the end users of construction and building materials and must not pay municipal sales tax to a retailer in another jurisdiction for materials to be used or consumed in the Town. No refund or credit of another municipality's tax will be allowed unless such tax is legally imposed. 3.09.055 — Tax credit for the Village (at Avon). RESERVE. I Netwithstandiag any ethpr-. of this Ghaptef:, there shall be gr-anted MOM! 3.09.056 - Tax credit for Community Housing. Notwithstanding any other provision of this Chapter, there may be granted a tax credit to each person owing tax on the use or consumption of construction and building materials and fixtures used in a Community Housing project provided that such use tax credit is approved by Council by resolution in accordance with Chapter 3.14. Neither the ability of the Town to grant this tax credit nor the repeal or termination of this tax credit shall constitute a tax rate increase, the imposition of a new tax or a tax policy change. 3.09.057 - Temporary tax credit for renewable energy production components. Notwithstanding any other provision of this Chapter, there shall be granted a temporary tax credit to each person owing tax on the use or consumption of components used in the production of electricity, generation of heat or cooling of air, from a renewable energy source, including but not limited to wind, solar, solar thermal systems, and geothermal energy systems, provided that this temporary tax credit shall commence on the effective date of this ordinance and shall continue until December 31, 2024, whereupon this temporary tax credit shall automatically expire unless extended by adoption of an ordinance. Neither the ability of the Town to grant the temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition of a new tax or a tax policy change. 3.09.060 — Collection and administration. a) The administration of this chapter is hereby vested in the Director, who shall prescribe forms and promulgate rules and regulations for the proper administration and 5 ATTACHMENT B enforcement of this chapter. The Director may delegate to any person the power and authority necessary for the proper administration and enforcement of this chapter. b) The use tax required by this Chapter shall initially be made by estimate, which estimated amount must be paid at or prior to the time any permit for building or construction within the Town is issued. No permit shall be issued by the Town Building Official, or any other town employee, to any person requesting a permit for construction within the Town until such estimated use tax has been paid, except as described below for single-family and duplex residential building_ permits. The tax estimate shall be made by the Director, working with the Community Development Department to determine the Construction Valuation. A single family or duplex building permit applicant may request deferral of the payment of the Use Tax until completion of construction whereupon payment in full shall be a condition of issuing a Temporary Certificate Occupancy or Certificate of Occupancy. c) All use taxes due to the Town must be paid in full before a final building inspection may take place and a permanent or temporary certificate of occupancy issued. The Director may determine the amount of use taxes due to the Town before final inspections occur or certificates of occupancy issue. To assist in this determination, the Director may request information from the taxpayer, who shall timely provide it, which information may include proof of actual amounts paid for construction and building materials used or consumed in the building project. d) A person engaged in a construction project in the Town who does not apply for and have issued a permit or who seeks and obtains prior approval of the Director to remit use taxes in accordance with this Subsection (d) shall, on or before the twentieth day of each succeeding month following the start of construction, file a return with the Director attaching all statements and invoices establishing the price paid for building and construction materials used in the local project, along with a summary sheet for materials purchased the previous month, and shall thereupon pay to the Town the full amount of use tax due for the preceding month or months. Any failure to make such return and payment of such use tax shall be deemed a violation of this Chapter, which may, upon conviction, subject the violator to penalties provided. 3.09.070 — Penalty and Interest. a) If any person fails, neglects, or refuses to pay the use tax as required by this chapter, or if any taxpayer fails to remit the proper amount of tax or underpays the tax, then penalties and interest shall be imposed in accordance with this section. b) If a person neglects or refuses to pay any use tax as required by this Chapter within ten (10) days after the same is due, the Director shall make an estimate, based upon such information as may be available, of the amount of use tax due for the period for which the taxpayer is delinquent and shall add thereto a penalty equal to the greater of fifteen dollars ($15.00) or ten percent (10%) of the amount due and interest at the rate a ATTACHMENT B of one -and -a -half percent (1.5%) per month from the time delinquent payment was due. c) If any part of the deficiency is due to fraud with the intent to evade the tax, there shall be added a penalty of one hundred percent (100%) of the total amount of the deficiency, and in such case the whole amount of the tax unpaid, including the additions, shall become due and payable ten (10) days after written notice and demand by the Director, and an additional three percent (3%) per month on said amount shall be added from the date payment was due, until paid. d) The Director may, for good cause shown, waive any penalty or interest. 3.09.080 — Remedies not exclusive. In addition to enforcement remedies expressly provided in this chapter, the Town may pursue any other remedies available at law or in equity. 3.09.090 — Lien. The tax imposed by this Chapter, together with accrued interest and penalties, shall be a first and prior lien on any real property into which the construction and building materials were incorporated. 3.09.100 — Limitation of Action. Use tax, interest, and penalties shall be assessed, and any action to collect the same shall be commenced, within three (3) years of the issuance of a final certificate of occupancy for the improvement on which the use tax was paid. This period of limitation shall not run for any period of time covered by an audit if written notice of that audit is given to the taxpayer prior to expiration of the limitation period. 3.09.110 — Refunds. a) Upon completion of construction, the taxpayer may apply to the Director for a refund of overpaid taxes. Such application shall be supported by documentation required by the Director or as needed to establish actual amounts paid for construction and building materials used or consumed as part of a building project. b) A taxpayer claiming an exemption may pay the use tax under protest. Applications for refund of such protested tax must be made within sixty (60) days of issuance of the building permit for which the use tax was paid under protest. c) A taxpayer claiming refund for use tax paid by mistake or in error must make that claim within three (3) years of the final inspection or issuance of a permanent certificate of occupancy, whichever comes later, for the improvement on which the use tax was paid. 7 ATTACHMENT B d) All claims for refund shall be upon forms prescribed by the Director and made in such manner as required by the Director. The Director shall promptly review refund claims and issue a denial in writing, state the reason therefor, or provide the funds requested, after applying any refund amount against outstanding tax liabilities. e) If a taxpayer disputes a refund denial, the taxpayer shall provide the Director with a written protest, filed within 30 days of the Director's notice. The protest shall identify specific grounds for dispute, including any necessary documentation, and shall request a hearing before the Director. This protest process, and that of any related appeal, shall be in accordance with Section 29-2-106.1, Colorado Revised Statutes. e) The right to refund shall not be assignable. 3.09.120 — Audit. a) The Town may audit, or the taxpayer request an audit, within three (3) years from the issuance of any certificate of occupancy for the improvement on which the use tax was paid. An audit requested by the taxpayer shall be at the taxpayer's sole cost. b) If the recomputed use tax is less than the amount of use tax paid by the taxpayer, the difference shall be refunded to the taxpayer within thirty (30) days of the final determination of the Town. If the recomputed use tax is more than the amount of use tax paid by the taxpayer, the difference, along with any interest and penalty imposed by this chapter, shall be due and payable by the taxpayer immediately upon the final determination of the Town with notice to the taxpayer. 3.09.130 — Book, Records, Reports, and Returns. a) Every person liable for any use tax imposed by this chapter shall keep and preserve, for a period of three (3) years from the date of issuance of a final certificate of occupancy for the improvement on which the use tax was paid, all books, records, reports and returns necessary to determine the amount of tax liability. All such books, records, reports, and returns shall be open for examination at any time by the Director. b) Any information gained by taxpayer disclosure or as part of an audit or investigation shall be entitled to the same level of confidentiality afford to sales tax information, as set out in Chapter 3.08 of the Avon Municipal Code. c) For the purpose of determining the amount of tax due from any taxpayer, the Director may hold investigations and hearings concerning any matters covered by this Chapter, and may examine any relevant books, papers, records, or memoranda of any such person, requiring the attendance of such taxpayer, or any officer or employee of such taxpayer, or of any person having relevant knowledge, and taking such testimony and proof as may be necessary to properly ascertain any tax liability. The Director shall H. ATTACHMENT B have power to administer oaths to any person in the course of such investigations or hearings. Production of documents and attendance of witnesses shall be requested by the Director on his or her own motion or on motion of any parry; any request for production or attendance shall inform persons that compliance is voluntary but that, if the request is not complied with, the Director may apply to the Municipal Judge for issuance of a subpoena. d) The Municipal Judge, upon application of the Director, may compel the attendance of witnesses, the production of books, papers, records or memoranda, and the giving of testimony before the Director or any of his or her duly authorized agents, by the issuance and enforcement of subpoenas, in the same manner as production of evidence may be compelled before the court. 3.09.140 — Violation and Penalty a) It is a violation of this Chapter for any person subject to the use tax levied by this chapter to submit any false or fraudulent use tax information to the town, to make any false statement on any document used to calculate taxes due under this chapter, to fail or refuse to make payment of any taxes due, to evade the payment of any taxes due, or to aid or abet another in any attempt to evade the payment of any taxes due under this chapter. b) In addition to any other penalty provided in this Chapter, any person who violates any provision of this Chapter shall be punished in accordance with Section 1.08 of the Avon Municipal Code. 9 ATTACHMENT B 970-748-4065 ddempsey@avon.org TO: Downtown Development Authority FROM: Danita Dempsey, CASE Manager RE: Concept for Culture & Arts Building at 351 W. Benchmark Road DATE: September 5, 2024 SUMMARY: This report introduces the concept of redeveloping the old fire station (“351”) into a culture and arts hub further connecting the Town’s culture and arts venues, existing programming, and future offerings into the community. At your work session, I am seeking feedback from the Downtown Development Authority (“DDA”) with the plan to present to Council during the October 8th meeting. 351 is a central spot where artists and arts organizations can create without financial burden, exhibit, and sell their works, host educational workshops, and cultural organizations meetings, etc. A place which enriches the community through easily accessible discovery of the arts, fostering the caring support of the arts and the culture that grows around it. The 351 building is well positioned geographically flanked by Harry A. Nottingham Park, the Avon Recreation Center, and the Avon Library. And with approximately 15,000 square feet (about half the area of a large mansion) of space, it is appropriately sized to serve as a launchpad to grow Avon’s culture and arts efforts. The redevelopment concepts imagine Avon in partnership with the Vail Valley Art Guild (“VVAG”) creating space for ceramics, woodworking, painting, small coffee shop with grab-n-go foods, hosting workshops of all kinds, art exhibits and a store front for artist to sell their creations, etc. Currently, there is not another Town owned property or building where this facility is viable in the near term. BACKGROUND: Avon leapt into the arts and culture arena in 2015 with the completion of the Avon Pavilion and expansion of its events portfolio to include multiple live music events, art festivals, cycling finishes, and other community gatherings. In February of 2019, Resolution 19-12 was approved by the Avon Town Council forming the Culture, Arts & Special Event (“CASE”) Committee whose purpose and duties include in part, to “…research and provide guidance and advice concerning development of the Cultural Plan for the Town.” Additionally, in January of this year, the Town entered into a Rent Support Lease Agreement with the Vail Valley Art Guild (“VVAG”) to relocate their headquarters to a ground level commercial space in The Season in Avon and across from Town Hall. Over time, this strategic location will help activate the Main Street Mall and better facilitate community interest and involvement in the VVAG, and culture and arts in general. The Rent Support Agreement terminates December 31, 2026. The desired outcome is the Avon-based VVAG is better poised to play a key role in the development of a culturally diverse portfolio of offerings, increasing the social and economic vitality in Avon. In 2021, the Town made great strides towards culture and arts offerings with the addition of the (1) Art Around Avon rotating art program (2) installation of the Enjoy Life | Disfrute La Vida! Mural (3) installation of nine historical markers and (4) Painted Benches Project, to name a few projects. Furthermore, as outlined in the 2024 General Government Department Goals, the La Zona project identified the 351 properties as an appropriate location for the development of a community event, gathering space, and art center. Moreover, members of CASE, Vail Valley Art Guild and Staff conducted site visits with the towns of Silverthorne and Gand Lake earlier this spring with plans to visit the towns of Breckenridge and Ridgway later this fall and/or spring 2025. The purpose of these site visits was to gather facility and programming information and conduct networking. Page 2 of 5 Ten years after the completion of the Avon Pavilion, the remodeling of 351 into an arts and culture-related building is timely, in step with Avon’s growing community and burgeoning culture and arts offerings, and overtime will increase the draw and attraction to Avon. 351 BUILDING SUMMARY & CONCEPTS: The concepts for 351 are within the approved uses for funds generated by the DDA, such as “…public improvements that benefit the health, vitality and success of the Avon commercial core.” An investment in 351 will overtime, stimulate economic growth and inspire partnerships that improve vitality, enhance the fabric of our community, and build healthy connections. The building was vacated by the Eagle River Fire Protection District in 2017 and acquired by the Town of Avon. In the years since, the building has been used for short term housing for local business owners’ staff and more recently, as storage for event assets, Facilities and Public Operations Departments. The concept envisions the redevelopment will have industrial finishes (exposed metal, wood, concrete, etc.) to help minimize cost. This is best visualized in the large bays with garage style doors, concrete floors, and exposed columns. There may be a few exceptions, for example in the kitchen, where if culinary classes, demonstrations, etc., are offered there may be a need for commercial or residential finishes. There are currently approximately 30-75 parking stalls that could support this project (W. Benchmark Road, Rec. Center West, Old Town Halls, Lake Street). That said, parking in and around 351 is cramped and competitive to say the least, and a full parking analysis should be conducted during the planning phase. Full activation and programming concepts for use of the space are not fully fleshed out, however initial concepts include (1) in the two large bays: an art gallery/exhibit space, coffee shop/grab-n-go foods, store front selling local artists work (2) in the two small bays: woodworking and/or ceramics (3) individual art and music studios in the upstairs and/or downstairs bedrooms (4) office and meeting space for VVAG and other arts organizations in the conference room (5) special events, workshops, classes and gatherings in multiple spaces. Staff believes the conceptual uses are within the Public Facilities (“PF”) zoning list of allowed uses. The coffee shop/grab-n-go foods will function alongside other uses such as the gallery, exhibition space, and store. Therefore, Staff anticipates these are acceptable under the Accessory Use regulations of the Avon Development Code. The desired exterior design should include cheerful, colorful, and artsy applications indicative of what to expect inside the space; Image 1 below provides a visual illustration. The west facing façade is cluttered with utility infrastructure and requires thoughtful consideration during the planning process on alternative placement and/or design that allows this infrastructure to blend in as illustrated in Images 2 and 3 below. Image 1: Art Spot Page 3 of 5 Image 2 Image 3 1. EXTERIOR: The exterior façade is stucco and vertical wood siding and requires refreshing. The roof is in disrepair and in need of replacement. The landscaping on the east, west and north sides of the building needs cleaning up of debris, trimming of trees, and renewing. The trash enclosure on the south side of the building needs replacement and updating to accommodate for three product streams (landfill, compost and recycle) and easy access for servicing. 2. INTERIOR: 351 is approximately 15,000 square feet (about half the area of a large mansion) and houses the following number of, and room types in the building: 2-offices/reception, 14-bedrooms, 6-full baths, 2 ½ baths, 1-kitchen/dining, 2-living room/common spaces, 1-laundry room, 1- conference room. The fire suppression system needs replacement/repair in certain areas of the first floor. A description of the exterior as well as a layout of the rooms on both the first and second floors and images for visual reference are provided and attached as ATTACHMENT A. Page 4 of 5 PEER COMMUNITY SITE VISITS: Staff, members of the Town Council, CASE Committee and the VVAG conducted site visits to two peer communities (Silverthorne and Grand Lake) and attended the Colorado Creative Industries Summit in Pueblo, Colorado. The salient point resonating with the group is the importance of listening to and engaging the community, the authenticity of the offerings relating to “fit” for the community, and the repurposing of buildings. Based on peer community site visits, Staff believes a structure like the Town of Silverthorne’s “Art Spot Silverthorne Makerspace” is a good model to begin discussions. Therefore, a summary of our collective findings from the Town of Silverthorne is provided below with the Town of Grand Lake provided and attached as ATTACHMENT B. As well, ATTACHMENT A includes images from the peer community site visits. 1. TOWN OF SILVERTHORNE: In April of this year, Town Staff, members of the CASE Committee and the VVAG toured the Town of Silverthorne’s (1) Art Spot (2) Silverthorne Pavilion (3) and Silco Theatre, formerly the Lake Dillon Theater. a. Art Spot Silverthorne Makerspace: The Town of Silverthorne applied for and received a $300,000 grant from Colorado Creative Industries to remodel and equip their old fire station. The Art Spot opened in August of 2023 and is an unpretentious, welcoming, and colorful building which includes multiple spaces equipped with supplies for making art, teaching, learning, gathering, and celebrating. i. Art Spot revenue streams include membership, daily admissions, rental fees, and a 20% commission on art sold in The Market. ii. The General Fund includes $100,000 per year for operations and expenses of the Art Spot. The Town Public Operations Department maintains the property. iii. The Art Spot features three (3) studio spaces available to local artists to rent. The Town of Silverthorne subsidizes 40% of the rental fee. Artists use these spaces as a store-front and/or workspace to create. iv. “The Market” is the store front selling works of Summit County based artists. The Market is operated by Town staff and open 6 days a week. v. Certified programming spaces include a woodshop (hand and power tools, etc.) and ceramics (8 pottery wheels, kiln, etc.) where the user is required to take the Art Spot provided/led certification prior to using the space. vi. The non-certified spaces where certification is not required include jewelry making, drawing, textiles, candle making, flower arranging, painting, 3-D printing, and much more. vii. Silverthorne Staff described the difference between certified and non-certified space as the latter being “dust-free.” b. Silco Theatre: The Silco Theatre is a beautiful venue built in 2019 for $9 million with the Town of Silverthorne providing $6M and the Lake Dillon Theater Company raising the additional $3M. i. The Town of Silverthorne subsidizes the Silco Theater $250,000 per year to help cover the cost of programming and events. ii. The Theatre revenue stream includes fund raising events, donations, sponsors, tickets, program fees, bar sales, and private rentals. iii. The Theater hosts a theatrical season which includes comedy, dramas, musicals, provocative theatre, concerts, and educational opportunities. Page 5 of 5 iv. The Theater has multiple flex spaces which accommodate distinct types of seating based on performance type and number of tickets. c. Silverthorne Pavilion: Nestled adjacent to the Blue River and recreation pathways, the Silverthorne Pavilion hosts a multitude of weddings (over 200 weddings each year), concerts, theater, comedy, public and private meetings. i. The Pavilion grounds include cozy outdoor areas with seating and a fireplace. ii. The Pavilion indoor space includes a “ballroom” style room comfortably seating up to 250 guests, a balcony around the parameter, storage, and commissary. iii. The foyer includes a large entry way, a bar, and adjacent room for meetings, gatherings, etc. iv. The Pavilion is Town owned and operated. FINANCIAL CONSIDERATIONS: If the concepts proposed within are pleasing to the Town Council, Staff will proceed with the next steps including hiring an architect. The 2025 Proposed Budget includes a placeholder of $75,000 to engage an architect to begin the design process and $2M to build out the space with industrial finishes in most spaces. Staff will seek grants to contribute to redevelopment costs and equipment costs. Thank you, Danita ATTACHMENT A: Culture & Arts Center Concepts ATTACHMENT B: Peer Community Site Visit – Town of Grand Lake Culture & Arts Center Concepts August 19, 2024 Culture & Arts Center Concepts: 351 W. Benchmark Rd 8/19/2024 Danita Dempsey, CASE Manager ATTACHMENT A Old Fire Station: 351 Benchmark Road Ariel View Culture & Arts Center Concepts August 19, 2024 South Facing Facade Old Fire Station: 351 Benchmark Road Exterior West Facing Facade Culture & Arts Center Concepts August 19, 2024 North Facing Facade Old Fire Station: 351 Benchmark Road Exterior East Facing Facade Culture & Arts Center Concepts August 19, 2024 South Facing Facade Old Fire Station: 351 Benchmark Road Culture & Arts Center Concepts August 19, 2024 First Floor •Six (6) bedrooms. •Two (2) full baths, one (1) ½ bath (shower only). •One (1) conference room. •One (1) small office/reception area w/ storage closet, entry door. •One (1) larger open office space with storage closet and wet sink. •Two (2) small bays opening on the south side of the building. •Storage or other space behind the small bay on west side of the building. •Two (2) large bays opening on both the north and south sides of the building. •Storage or other space at base of steps to second floor, entry door. •Eight (8) bedrooms. •Four (4) full baths, one (1) ½ bath. •One (1) small living room/common space. •One (1) large living room/common space w/ kitchen and dining room. •One (1) laundry room (3 washer and 4 dryer outlets). •One (1) conference room, slightly below the second floor and separated by five to six steps up. •One (1) small hallway converted to a locker room. •Two (1) balconies connected to two different sets of bedrooms. Second Floor Old Fire Station: 351 Benchmark Road First Floor Full Bath Culture & Arts Center Concepts August 19, 2024 Large Bay Small Bay Open Office Old Fire Station: 351 Benchmark Road Second Floor Full Bath Culture & Arts Center Concepts August 19, 2024 Bedroom Kitchen Open Office Town of Silverthorne: Art Spot Silverthorne Makerspace The Market Culture & Arts Center Concepts August 19, 2024 Art Spot Culture & Arts Center Concepts August 19, 2024 Art Spot Makers Space: Certification Required Woodshop Ceramics / Pottery Culture & Arts Center Concepts August 19, 2024 Art Spot Makers Space: No Certification Drawing, Painting, Jewelry Making, Floral Arranging, etc. Culture & Arts Center Concepts August 19, 2024 Town of Silverthorne: Pavilion Weddings, Live Music, Film, Comedy Shows, etc. Culture & Arts Center Concepts August 19, 2024 Town of Silverthorne: Silco Theatre Dramas, Musicals, Concerts, Educational Opportunities, Comedy Shows, etc. Culture & Arts Center Concepts August 19, 2024 Town of Silverthorne: Silco Theatre Large Theatre | Multiple Seating Arrangements Small Theatre | Intimate Performances Culture & Arts Center Concepts August 19, 2024 Town of Grand Lake: Community House Historical Building (150 years) Theater for plays, concerts, art fairs, etc. Culture & Arts Center Concepts August 19, 2024 Town of Grand Lake: Rocky Mountain Folk School & Pavilion Folk School: Pottery, Boot Making, Chair Canning, Papermaking, etc. Pavilion: Bingo, Pumpkin Fest, Potlucks, Private Rental, etc. Culture & Arts Center Concepts August 19, 2024 Town of Grand Lake: Grand Lake Center Gymnasium: Theater, Pickle Ball, Private Rental, etc. Classroom Converted to Exercise Equipment Culture & Arts Center Concepts August 19, 2024 Town of Grand Lake: Grand Lake Center Classroom Converted: Meeting Space, Private Rentals, etc. Classrooms Converted: Daycare, Youth Hangout 970-748-4065 ddempsey@avon.org ATTACHMENT B PEER COMMUNITY SITE VISIT 1. TOWN OF GRAND LAKE: In May of this year, a site visit included a tour of the (1) 150-year-old Community House (2) covered outdoor Pavilion (3) Rocky Mountain Folk School offering “…western cowboy artisan crafts…” and (4) Grand Lake Center is a repurposed elementary school which the Town acquired from the School District for $10. The Town of Grand Lake became a Creative District in 2018 after eight different non-profit organizations came together to submit the application. The Town contributes $100,000 to the Creative District, which serves as a backstop to cover the cost of production. The local Chamber produces or hires producers for event production/activation. a. Community House: The historic building hosts community theatre on the small indoor stage which through Colorado Creative Industries grant for $136,000, recently updated the lights and sound equipment. i. The local theatre company has a 20–30-year lease for the three main spaces in the Community House. ii. An Art Fair is held in the building and on the grounds, and smaller spaces are used for piano or dance lessons, rehearsal space and the like. iii. The space is also available for private rentals. b. Pavilion: Outdoor covered pavilion with multiple large picnic tables, canvas roll up “walls” and festoon style lighting. i. Regular programming and a dynamic aspect to the space and for the community c. Grand Lake Center: In 2011, the Grand Lake Elementary School ceased operations. The School, purchased by the Town in 2015 and reopened in 2016 as the Grand Lake Center. i. A 22,000 square foot multi-purpose center for the community offering year-round activities for all ages featuring a fully equipped fitness center, indoor gymnasium with basketball/pickleball courts, youth programs and camps, business services, meeting, and event space. ii. Revenue streams include general funds, fitness membership, daily admissions, rental fees. iii. The Public Operations Department maintains the property and helps with setting up events. d. Rocky Mountain Folk School: The Folk School is located in a Town owned building with a rich history. i. The Folk School, which offers skill-based arts and crafts, opened in spring of 2022 to help the community further its creative vibrancy and economic development year-round. ii. The Town covers the cost of programming through the general fund and grants. DDA MEETING MINUTES MONDAY, AUGUST 5, 2024 HYBRID MEETING, IN PERSON AND VIA MICROSOFT TEAMS AVON DDA MEETING MINUTES AUGUST 5, 2024 PAGE 1 | 2 ROLL CALL Present in Person: Board Member Wayne Hanson Present Virtually: Board Members Gregg Cooper, Marcus Lindholm, Matthew Fitzgerald, Rob Tartre and Scott Tarbet. Absent: Chair Tony Emrick, Vice-Chair Brandt Marott, Secretary Chris Neuswanger and Board Members Bill Glaner and Rich Carroll. Staff: Town Manager Eric Heil, Chief Financial Officer Paul Redmond and Chief Administrative Officer Ineke de Jong. The meeting was called to order at 3:06 p.m. CFO Paul Redmond presided over the meeting (in absence of DDA Board Chair Tony Emrick). 2. APPROVAL OF AGENDA There was no approval of the agenda. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS There were no disclosures of conflicts of interest. 4. PUBLIC COMMENT No public comments were made in person nor virtually. 5. BUSINESS ITEMS 5.1 Work Session: Use Tax (Chief Financial Officer Paul Redmond). Chief Financial Officer Paul Redmond delivered a presentation related to the use tax on new construction for the benefit of Community Housing in Avon. Questions included what is the exclusion level in other communities? It’s $10,000 in Town of Vail, what about the other municipalities? Do homeowners need a quote/bid for the scope of work or does the building inspector estimate a valuation for the scope of work? Is “for community housing” enough information for people to fully understand the ballot issue? For setting the exemption level, are we trying to win votes or collect maximum dollars when we raise from $50K exemption to $100K exemption (or higher)? A higher exemption level may have better optics for getting a ballot issue passed. A $200K exemption may have the perception that it doesn’t affect local homeowners. How much do we expect to collect from this use tax annually if passedd? Comments included the more we educate our voters about this use tax and the better they understand it, the more supportive the voters are of the use tax ballot proposal so staff is going back to the voters with a clear direction that funds are dedicated to community housing and better education to the voters in the next couple weeks. Staff anticipates that on average use tax funds will generate about $750K/year but revenues will go up and down just like the Real Estate Transfer Tax (“RETT”). There were comments that having this board consider a resolution to support a use tax ballot issue at the next meeting make sense. As this was a work session, Staff received feedback from Avon DDA Board Members and no motion was made. 5.2 Future Agenda Items: Discussion (Town Manager Eric Heil). Town Manager Eric Heil presented to the Avon DDA Board a list of Future Agenda Items to consider which included: DDA MEETING MINUTES MONDAY, AUGUST 5, 2024 HYBRID MEETING, IN PERSON AND VIA MICROSOFT TEAMS AVON DDA MEETING MINUTES AUGUST 5, 2024 PAGE 2 | 2 • Complete draft of Sun Rd Redevelopment Plan (September 16 but might take more than one meeting) • Complete draft of East Town Center Redevelopment Plan (September 16 but might take more than one meeting) • Considering a Resolution to support the use tax ballot proposal (September 16) • Review of concept to repurpose the old fire station at 351 Benchmark Rd. into an Art makers space (September 16) • Adopting the 2025 Budget (October 7 or November 4) • Planning Area B and Park Projects (October 7 or November 4) 5.3 Future Meeting Dates: Town Manager Eric Heil proposed to schedule the following Avon DDA Board Meetings on September 16, October 7 or November 4. After deliberations, consensus from the Avon DDA Board Members was to schedule all three of those meetings and get them on the calendar. Staff expressed that the November 4 meeting may be very short or may be a follow-up/carry-over discussion of items from the September and October agendas. There would not be a meeting anticipated for December but there will be an appreciation holiday dinner for the DDA board, the Planning & Zoning Commission and all other Avon citizen committees on Tuesday December 17 at Sauce on the Creek. Scott Tarbet left the meeting at 4:01 p.m. 6. MINUTES Board Member Gregg Cooper presented a motion to approve the Minutes from Avon DDA Board Meeting held May 13, 2024. Board Member Wayne Hanson seconded the motion. They were approved with a 4-0 vote. 7. ADJOURNMENT The meeting adjourned at 04:08 p.m. Respectfully submitted by: Ineke de Jong Chief Administrative Officer These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office.