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TC Minutes 05-26-2026AVON REGULAR MEETING MINUTES A TUESDAY MAY 26, 2026 Avon HYBRID MEETING; IN -PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM COLORADO CALL TO ORDER AND ROLL CALL The meeting was held in a hybrid format, in person at Avon Town Hall and virtually via Zoom. Mayor Tamra N. Underwood called the Regular Council Meeting of May 26, 2026, to order at 5:00 p.m. At roll call, Councilors present in person were Gary Brooks, Ruth Stanley, Lindsay Hardy, Kevin Hyatt, Mayor Pro Tern Richard Carroll, and Mayor Tamra N. Underwood. Councilor Chico Thuon was absent. Also present were Town Manager Eric Heil, Deputy Town Manager Patty McKenny, Chief Administrative Officer Ineke de Jong, Town Attorney Nina Williams, Town Clerk Miguel Jauregui Casanueva, Recreation Director Michael Labagh, Financial Analyst Chase Simmons, Public Works Director Mike Jackson, Engineering Director Eva Wilson, Community Development Director Matt Pielsticker, IT Administrator Andrew Bare, and Police Chief Greg Daly. 2. APPROVAL OF AGENDA Video Start Time: 00:00:30 Mayor Underwood opened consideration of the Agenda. Councilor Stanley moved to approve the agenda as presented. Councilor Hardy seconded the motion. The motion passed unanimously, 6-0. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:00:50 Mayor Underwood asked whether there were any conflicts of interest related to agenda items. None were disclosed. 4. PUBLIC COMMENT Video Start Time: 00:01:05 Mayor Underwood explained the public comment process, noting that comments could be provided in person, via Zoom, by telephone, or by email. Public comment was limited to items not listed on the agenda, with a three -minute time limit per speaker and an additional minute at Council's discretion. Tim McMahon, an Avon resident, addressed Council in person and reported that at approximately 6:30 p.m. the previous evening, Avon Police impounded a Class III a -bike operating in violation of bike path regulations. Mr. McMahon stated that he shared the incident on the "Eagle County Classifieds" Facebook group, where it received significant engagement. He noted that Class I and II a -bikes are permitted on Town bike paths, while Class III a -bikes are prohibited and require helmet use. He requested that Council consider regulations requiring helmet use for Class I and II a -bike operators and their passengers in Town and consider fines for parents who allow their children to operate Class I II a -bikes on Town bike paths. No additional public comment was received at that time, either in person or virtually. The Mayor noted that pages 121-122 of the packet include a summary of valley -wide Eagle Valley youth safety initiatives and communication efforts related to a -bike safety, At approximately 5:18 p.m., Avon resident Ian Grask addressed Council virtually after resolving technical difficulties with the Zoom webinar. Mr. Grask congratulated Mr. McMahon on his Vail Valley Partnership Community Impact Award and commented on anticipated water use limitations affecting the Avon community this summer, encouraging the Town to irrigate its properties responsibly. AVON REGULAR MEETING MINUTES J TUESDAY MAY 26, 2026 Av O n HYBRID MEETING; IN -PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM COLORADO 5. CONSENT AGENDA Video Start Time: 00:05:50 Mayor Underwood introduced the Consent Agenda, which included: 5.1. ACTION: Approval of May 12, 2026 Regular Council Meeting Minutes (Town Clerk Miguel Jauregui Casanueva) 5.2. ACTION: Intergovernmental Agreement with the Upper Eagle Regional Water Authority for Water Use Data (Public Works Director Mike Jackson) Councilor Stanley moved to approve the Consent Agenda, as presented. Councilor Hardy seconded the motion. The motion passed unanimously, 6-0. 6. BUSINESS ITEMS 6.1. ACTION: Development Agreement for The Summit (Town Manager Eric Heil) Video Start Time: 00:06:20 Town Manager Eric Heil presented the latest draft Development Agreement for The Summit apartment project on Lot B, along with related agreements necessary for its implementation. Members of the developer's team, including Founder Don Simpson, CEO Luke Simpson, CIO Kevin Fults, and Alan Simpson, were present in person. Don and Alan Simpson delivered presentations on the Grand Peaks family business and a Summit -specific overview. At approximately 5:18 p.m., Chief Administrative Officer Ineke de Jong advised Council that Avon resident Ian Grask had experienced technical difficulties with the Zoom webinar and requested to provide public comment unrelated to this agenda item. Without objection, Mayor Underwood approved the request, and Mr. Grask's comment was included under Section 4. Mr. Heil presented key terms of the Summit Development Agreement, including a request for Council feedback on accepting a snowmelt system exceeding the 6,000 square foot maximum for a single property and endorsing use of the Avon Wastewater Recovery Project to fully offset the system's additional energy use. He also requested Council consider a motion to approve the Development Agreement for The Summit apartment project with the following conditions: 1. Exhibit C: Community Space shall be subject to review and approval by the Town Manager and Town Attorney. 2. Exhibit G: Public Improvements Agreement engineered plans shall be subject to review and approval by the Town Manager, Town Attorney and Town Engineer. 3. The date for construction completion shall be December 31, 2029. 4. The Development Agreement shall be revised to include the following additional provisions, subject to review by the Town Manager and Town Attorney: a. All contracts that comprise the Development Costs and all financing contracts and guarantees shall be shared as confidential proprietary and financial information for review by Mayor, Mayor Pro Tem, Town Manager and Town Attorney for the purpose of verifying total Development Costs of the project and verifying adequate financing to fully construct and development the approved development plan. b. Owner shall forward any Notice of Default for any financial contracts or guarantees and any change orders or contractual amendments that increase Development Costs within five (5) business days of receipt by Owner. AVON REGULAR MEETING MINUTES A TUESDAY MAY 26, 2026 avo n HYBRID MEETING; IN -PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM C O L O R A D O c. A financial remedy for delay of construction completion shall be included in the Development Agreement, which shall be proportionate to the tax increment financing revenue the Town is projected to receive, shall be a lien on the property which is subordinate to the construction financing for the development of The Summit, and shall bear interest at the same interest rate as the Town's loan for six million dollars through Alpine Bank. Mayor Underwood asked Mr. Heil to clarify when tax increment would begin accruing to the DDA, including whether it would occur upon completion in 2029 or 2030, how the process works with the Assessor's Office, and when revenues would be reflected in the budget. Mr. Heil stated that if the building is completed in 2028, the Assessor would evaluate the property and tax increment would be remitted by the County that fall, based on prior experience with the dual -brand hotel (Marriott Suites). In response to a question regarding the need for a certificate of occupancy, Mr. Heil indicated that partially completed properties may also contribute partial tax increment in the applicable year. He added that the URA has first priority through 2032, after which the DDA would continue to receive the increment. Councilor Brooks inquired about the assignment of water rights from the Town's portfolio to the project and whether the Town had an interest in requesting County contributions of water for community housing units. Mr. Heil indicated such an approach would be cumbersome given the size and number of the proposed units. Councilor Brooks noted that the Town has additional single-family equivalents (SFEs) available for development. Councilor Hardy inquired about the status of updated commercial real estate information for the project and noted she had previously requested comparable data related to the commercial space the Town may purchase. Mr. Heil indicated he had not yet had an opportunity to compile that information. Councilor Hardy also inquired whether the space totaled 4,000 or 5,000 square feet, and Mr. Heil stated it is approximately 5,000 square feet, including hallway area, and that he would confirm the exact figure and revise the Development Agreement accordingly. Councilor Hardy further inquired about the use of snowmelt systems in the pedestrian area, Mayor Pro Tern Carroll inquired about specific provisions of the Development Agreement, including references on page 26, Section B (ownership of approximately 1.7 acres), page 28, Section Y (definition of Development Costs), and page 31, Section D (Milestone Dates), and asked about the implications if milestone dates are not met. Mr. Heil advised that Paragraph 4(a) and (b) of his presentation address the consequences if milestone dates are not met. Mayor Underwood asked Mr. Heil to explain why interest accrued on the Town's escrow funds would be released to the developer rather than retained by the Town. Mr. Heil indicated this reflects the developer's request, based on the deferral of the Town's $6 million contribution to the end of the project. Mayor Underwood also inquired about the Community Space depicted in the Development Agreement documents and diagrams. Mayor Underwood asked Council to deliberate on two questions identified on pages 25-26 of the AVON REGULAR MEETING MINUTES TUESDAY MAY 26, 2026 Avon HYBRID MEETING; IN -PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM COLORADO Development Agreement regarding whether to approve a snowmelt system exceeding the 6,000 square foot limit and whether to endorse use of the Avon Wastewater Recovery Project to fully offset the system's energy use. Council raised no objections to this approach. Councilor Hardy requested that use of the Avon Wastewater Recovery Project be treated as a public utility. Mayor Underwood opened the floor to public comment. Tim McMahon, an Avon resident, addressed Council in person and inquired how the proposed community housing component would help address the community housing shortage. Tony Emrick, an Avon Center resident, addressed Council and expressed support for the project and the stipulations agreed to with Grand Peaks. Steve Sendor, an Edwards stakeholder with Fortius Capital, addressed Council and stated that he had worked on the project for approximately seven years prior to the current development effort. He noted that prior efforts with two hotel groups and an apartment developer did not advance to this stage, and that Grand Peaks' work over the past two years had provided a viable solution to a complex project. No additional public comment was received, either in person or virtually. Mayor Pro Tern Carroll thanked staff and the developer for their work and expressed support for the proposal, subject to the conditions outlined by Mr. Heil. Councilor Stanley concurred with Mayor Pro Tem Carroll's comments and expressed support for the proposal, while noting concern regarding the 38 surface parking spaces on the adjacent property and suggesting that the number be increased. She acknowledged the effort to date and expressed hope that construction can proceed promptly. Councilor Hardy expressed appreciation for the effort but stated she could not support the agreement with the proposed $6,000,000 commitment without comparable data and given the uncertainty of future conditions. She noted her disappointment that the requested comparables had not been provided despite prior requests. She further requested more detailed diagrams, expressed concern that the Town may be subsidizing elements of the development's financial structure, and indicated that parking for the commercial space appears insufficient. Councilor Hardy stated she would vote in opposition. Councilor Hyatt expressed appreciation for the work and the quality of the proposal, noting support for addressing blight and stating it is time to move forward. He indicated he would vote in favor. Councilor Brooks thanked staff and the developer for their efforts in advancing the project to include 16 community housing units in the core of Avon and expressed support for that outcome. He also supported the proposed milestone dates and the use of tax increment financing (TIF). Councilor Brooks noted the difficulty in identifying comparable data for the Town's $6 million contribution and indicated he was comfortable with the overall approach, including the project's financial assumptions, timelines, public improvements plans for West Beaver Creek Boulevard, and the proposed water rights assignment. He further expressed support for extending the heat recovery system from Lot 3 to the Recreation Center and into the project to offset energy use associated with the snowmelt system. Councilor Brooks stated he would vote in favor. AVON REGULAR MEETING MINUTES A TUESDAY MAY 26, 2026 Avon HYBRID MEETING; IN -PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM COLORADO Mayor Underwood and Mr. Heil discussed revising the motion to include commercial shell space square footage as an additional condition, and to renumber the existing conditions accordingly. Mayor Underwood expressed satisfaction with the project outcome, including the provision of 16 deed -restricted units at 100% AMI. She noted reservations regarding the Town's purchase of the commercial space but acknowledged the current stage of the project and expressed appreciation for the integration of the commercial components. She also expressed hope that the project would activate the pedestrian mall and increase tax revenues in the area. Mayor Underwood thanked staff for the parking agreement and revisions to the fund release waterfall and stated she is supportive of the project and will vote in favor. Mr. Heil presented a revised and updated diagram for the Community Space in Exhibit C, which was displayed to Council and the public as part of the record, including proposed property conveyances to the Town. He indicated that, once further refined, the diagrams would be incorporated into the Development Agreement to satisfy the applicable conditions. Following deliberation, Mayor Pro Tern Carroll moved to approve the Development Agreement with the conditions read into the record, as proposed by the Town Manager and revised during the public meeting. Councilor Hyatt seconded the motion. The motion passed 5-1, with Councilor Hardy voting in opposition. 7. WRITTEN REPORTS 7.1. Planning & Zoning Commission Minutes (Development Coordinator Emily Block) 7.2. Monthly Financials (Senior Accountant Dean Stockdale) 7.3. May 19 Draft Health & Rec Committee Minutes (Recreation Director Michael Labagh) 7.4. Parks Seasonal Review/Outlook (Recreation Director Michael Labagh) 7.5. Village at Avon Permitting Updates (Director of Engineering Eva Wilson) 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES Video Start Time: 01:59:10 Mayor Underwood reported that Commissioner Boyd had texted her that $40 million in federal funding is anticipated to be released, for Shoshone water right preservation, noting its significance for our Community. She added that she, Mr. Heil, and Councilor Brooks would receive a briefing from the Colorado River Conservation District on Thursday. She also noted that SunsetLlVE! began the previous Sunday and will continue every Sunday through September, and that AvonLIVE! will begin this week on Wednesday and run weekly on Wednesday evenings through August 19. Councilor Brooks reported that Sarah Smith Hymes coordinated a meeting with Wildridge residents regarding water consumption, with participation from Eagle River Water and Sanitation District. He stated the meeting was well attended, with questions primarily related to the golf district, which is outside the Town's control. He noted the discussion included lawn irrigation reduction efforts and available resources for turf replacement. The Eagle County Conservation District (ECCD) also participated and held office hours at the Avon Public Library from 10:00 a.m. to 1:00 p.m. the following day to provide additional AVON REGULAR MEETING MINUTES A TUESDAY MAY 26, 2026 Avon HYBRID MEETING; IN -PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM COLORADO information on conservation programs, including the Beyond Lawn initiative. Councilor Hardy reiterated comments made by Ian Grask, recognized Tim McMahon for being named the winner of the Vail Valley Partnership Community Impact Award — Individual Category, and acknowledged Mr. Grask for his nomination in the same category. She also extended birthday wishes to Mayor Underwood and congratulated Breck Boyd for winning four swim titles. Councilor Hyatt reported on the Health and Recreation Committee meeting held the previous week, noting discussions focused on delays in Recreation Center maintenance. He stated the project is expected to be deferred by one fiscal year, with plans to proceed the following year. 9. EXECUTIVE SESSION Video Start Time: 02:05:15 Mayor Underwood requested a motion from her fellow councilors to proceed into Executive Session. Councilor Stanley motioned to retire into Executive Session for the purpose of discussing a: 9.1. a Personnel Matter Concerning the Town Manager Annual Review Pursuant to CRS §24-6-402(4)(F) (Town Manager Eric Heil); and 9.2. a Personnel Matter Concerning the Town Attorney Annual Review Pursuant to CRS §24-6-402(4)(F) (Town Manager Eric Heil). Councilor Hyatt seconded the motion. The motion carried unanimously, 6-0. Councilor Thuon was absent. The time was 07:07 p.m. At the roll call, all members of Council were present as indicated above with Councilor Thuon absent. Also present were Town Manager Eric Heil, Deputy Town Manager Patty McKenny, Chief Administrative Officer Ineke de Jong, and Town Attorney Nina Williams. The Executive Session commenced at 07:18 p.m. The Executive Session adjourned at 09:48 p.m, 10. ADJOURN There being no further business before Council, Mayor Underwood moved to adjourn the regular meeting. The time was 09:48 p.m. These minutes are a summary of the proceedings of the meeting and are not intended to be comprehensive or to include each statement, identify each speaker, or reflect the proceedings with complete accuracy. The most accurate record of the meeting is the audio recording maintained in the Town Clerk's Office and the video recording available for a limited time at High Five Media at www.highfivemedia.oro. RESPECTFULLY SUBMITTED: Miguel Jauregui Ca n eva, Town Clerk APPROVED: Mayor Underwood