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TC Packet 03-22-2016 Heil Law & Planning, LLC Office: 303.975.6120 3445 S. Clermont St. Fax: 720.836.3337 Denver, CO 80222 E-Mail: eric@heillaw.com H EIL L AW TO: Honorable Mayor Fancher and Town Council members FROM: Eric J. Heil, Town Attorney RE: Lot 4, Phase 1B Office Building in Mountain Vista Resort Subdivision DATE: March 3, 2016 Summary: Attached is a complete Council Report for the Mountain Vista Resort Subdivision Office Building, including a Purchase and Sales Agreement for the Town to purchase the property from Points of Colorado, Inc. for $1.5 Million. The Purchase and Sales Agreement is subject to approval by the Avon Town Council by ordinance. The Property, known locally as the Skier Building, would be acquired for use as a Town Hall. The building is 16,273 total square feet on three floors. The interior of the building is unfinished. Presentation of this comprehensive Council Report is scheduled for a work session on March 8, 2016. Presentation of an ordinance approving the Purchase and Sale Agreement is tentatively scheduled for first reading on March 22 and second reading on April 12, 2016. Requested Action: Town staff requests direction on any additional information that may be required for Council to fully evaluate and act upon an ordinance to approve the Purchase and Sales Agreement to purchase Lot 4, Mountain Vista Resort Subdivision, Avon, CO. Thank you, Eric M EMORANDUM & PLANNING, LLC COUNCIL REPORT FOR MOUNTAIN VISTA RESORT SUBDIVISION OFFICE BUILDING 140 West Beaver Creek Boulevard Mountain Vista Lot 4 March 8, 2016 REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd TABLE OF CONTENTS I. Executive Summary II. Chronology of Events III. Purchase and Sale Agreement IV. Avon Town Hall Facility Assessment and Space Needs Analysis, SEH, August 25, 2015 V. Master Plans, Review & Updates, Zoning & Subdivision Matters VI. Renovation & Relocation Options VII. Parking Requirements VIII. Building Inspection Report & Structural Engineering Report IX. Funding & Development Schedule Appendices Appendix 1: Purchase & Sale Agreement The following Appendices are available electronically at the listed site or may be viewed at the Town Clerk’s office during normal business hours: Appendix 2: Avon Town Hall Facility Assessment and Space Needs Analysis, SEH, July 2015 www.avon.org/spaceneedsanalysis Appendix 3: Avon West District Town Center Investment Plan, 2007 www.avon.org/investmentplan Appendix 4: Master Plan for Harry A. Nottingham Park Plan, 2008 www.avon.org/parkmasterplan Appendix 5: Planning Review and Update of the Harry A. Nottingham Master Plan, Swift Gulch Master Plan and Lot 5 Development Plan, 2015 www.avon.org/planningreview Appendix 6: Building Inspection Report, 2016 www.avon.org/inspectionreport Appendix 7: Structural Engineering Report, 2016 www.avon.org/engineeringreport Appendix 8: 2016 Capital Projects Fund www.avon.org/budget REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd Section I SECTION I EXECUTIVE SUMMARY FINDINGS 2015 Town Hall Facility Assessment The Town Hall Facility Assessment and Space Needs Analysis, July 12, 2015, was prepared for the Avon Town Council, by consultants Short Elliott Hendrickson, Inc. (SEH). The SEH Analysis concluded: “At a minimum, to satisfy building upgrade requirements and met the future space needs, a major building remodel will be required to address the sheer number and extent of issues in the existing shell and interior spaces. As well, we recommend full replacement of all MEP systems and components to meet the programming needs of the departments. It is likely more cost prohibitive to correct all the deficiencies than to build a new facility.” SEH Assessment, Page 18 Skier Building is Lease Cost Option to Address Present Town Hall Facility Deficiencies  The Mountain Vista Office Building and Police Department at the Joint Public Safety Facility is the least cost option.  No new taxes or tax rate increases are needed for the relocation Adopted Plans & Planning Review/Update for the Existing Town Hall Site; Potential New Uses • The 2006 Avon Comprehensive Plan expressly identified a community goal to relocate the Town Hall and redevelop the existing Town Hall site. • The Avon West Town Center District Plan, 2007, found the Town Hall building too small for its current use, outdated and lacking energy efficiency. The plan envisioned a new Town Hall that spanned both sides of a new Main Street (Fire Station and portion of parking lot and town park) to serve as a civic anchor. A larger program of commercial/retail, offices, civic uses, affordable and market rate housing was proposed for the mixed-use Town Hall facility. Since adoption of the District Plan the Town experienced a severe recession like the rest of the country and new commercial development on the Main Street Mall did not occur as expected. The Town recently completed improvements to the Main Street pedestrian mall to advance its on-going commitment to activate this core area of Town. . The Mountain Vista Office Building meets the goals of the District Plan: support Town Hall relocation, provides for office spaces and a civic anchor in close proximity to the library, recreation center and the park and makes the current site available for a dynamic use. • The Harry A. Nottingham Master Plan, 2008, was adopted showing the relocation of Town Hall and new uses at the park. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd Section I • Stan Clauson and Associates, consultants to the Town, facilitated a public process to consider future development on Town owned properties. The resulting work was presented to Council and the public in the Planning Review & Update - Harry A. Nottingham Park Master Plan, Swift Gulch Master Plan & Lot 5 Development Plan, November 15, 2015. The document recommended:  Locating the Police Department at Buck Creek in a Joint Public Safety Facility.  Utilizing the Mountain Vista Office Building for the balance of Town Hall functions. The report found the location has broad support and is a preferred location to house the Town’s other office, Court, community and meeting needs.  That the current Town Hall site be repurposed for potential uses, including but not limited to enhancing the soccer field and park amenities, new convention space, recreational uses, parking, performance space, etc. Main Street Mall Anchor & Synergy It is an opportune time to work the developers of Lot B and the Seasons’ renovation project to bring a synergistic program to the Mountain Vista Office Building. Town Hall office functions and community meeting activity at this location will serve an important anchor for this vibrancy. SECTION SUMMARY Section II Chronology of Events The listing follows the directives, studies and decisions of the Town Council beginning on January 27, 2015, which supported the work for a purchase agreement for the Mountain Vista Office Building. Section III Purchase and Sale Agreement Purchase Price: $1,500,000 Building Uses: Administrative and court offices, Courtroom/Council Chambers, meeting rooms and community space Closing Date: June 16, 2016 Additional information is provided on sale terms, including an access easement which would allow Points of Colorado and Starwood access, utilities, support for a subterranean parking garage abutting the Mountain Vista Office Building foundation, and crediting for shared open space. The Lot 4 Easement is intended to preserve all of Starwood’s development rights under the existing PUD which were based on access, site coverage and the existing configuration of Lot 4. Section IV Town Hall Facility Assessment & Space Needs Analysis, July 2015 The comprehensive Town Hall Facility Assessment & Space Needs Analysis (Assessment) was developed by Short Elliott Hendrickson, Inc. (SEH), at the request of Town Council. The Assessment reported on the deficiencies of the current building and estimated the current space shortages for staff working space. Future staff space needs were projected. Six facility planning options on three sites were prepared, with a cost budget developed for each scenario. The Assessment found the current Town Hall building to be in need of a major remodel or replacement. The cost budget analysis, with current pricing for the Police Department at the proposed relocation to the REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd Section I Joint Public Safety Facility, plus the purchase and finish of the Mountain Vista Office Building was shown to be the least cost option. Section V Master Plans, Review & Updates, Zoning & Subdivision Relevant master plans and the recent updated planning review are submitted in the section. Current adopted plans envision the relocation of the existing Town Hall. No PUD or zoning amendment would be required for the Town to use the property for a Town Hall. Lot 4, where the Mountain Vista Office Building sits, along with a portion of Lot 5 surrounding Lot 4 must be subdivided to create a consolidated lot that can be separated from the remainder of the Lot C PUD development and associated declarations. Section VI Parking Requirements The Town of Avon is able to meet the Mountain Vista Office Building parking demand on site and in the vicinity on adjacent Town owned property and rights-of-way, as allowed for by the Town’s Code. Section VII Renovation & Relocation Options Bringing the Avon Town Hall Facility Assessment and Space Needs Analysis, Planning Review and Update for Harry A. Nottingham Park Master Plan, Swift Gulch Master Plan, Lot 5 Development Plan together with the locational decision for the Police Department at Buck Creek, facility options and costs for the balance of Town Hall are presented. The comparison shows the Mountain Vista Office Building-Joint Public Facility/Police Department to be the least cost option. Section VIII Building Inspection and Structural Report The Mountain Vista Office Building was inspected by Eagle Eye Inspectors and KRM Consultants provided a current structural observation. No significant problems were identified, however, HVAC system inspection showed two items not working. With the plan to replace the HVAC for the needed system for full build- out, staff did not recommend fixing the items, but rather noticing Points of Colorado of the operational failure in the units. Section IX Funding and Development Schedule Funds for building acquisition are available in the current 2016 Capital Projects Fund. Construction, FF&E and contingencies to finish the building are available in the Urban Renewal Fund. No new taxes or tax rate increases are required for the full project. Should Town Council approve the purchase of the Mountain Vista Office Building, development of the building for use as a Town Hall could be completed by May 1, 2017. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION II SECTION II CHRONOLOGY OF EVENTS 2.1 JANUARY 27TH: Ad Hoc Committee/Study Group Recommended At the Council’s January 27, 2015, meeting, Mayor Jennie Fancher recommended the formation of an ad hoc committee/study group to further explore the acquisition of the Mountain Vista Office Building and examine whether or not it makes sense to acquire the building. The individuals recommended to be members of the committee were Mark Kogan, Phil Struve and Councilor Sarah Smith Hymes. It was also stated that any community members interested in participating in the ad hoc committee/study group should email Virginia Egger or Jennie Fancher. Angelo Loria, Dominic Mauriello, Brian Sipes joined the committee as well. The ad hoc group assisted with the RFQ process and selection of SEH to conduct a facility assessment and space needs analysis. 2.2 APRIL 28th: IGA Approved for Joint Public Safety Facility Town Council approved an Intergovernmental Agreement (IGA) between the Town of Avon and the Eagle River Fire Protection District (ERFPD), which set forth the terms and conditions for the design, construction, ownership and operation of a joint fire and police station facility (PSF) on Nottingham Road between Swift Gulch and Buck Creek Roads (Buck Creek Site). The IGA also detailed the conditions of Avon’s loan to the ERFPD. 2.3 AUGUST 25TH: Options for Town Hall – Locations, Estimated Costs & Financing The Avon Town Hall Facility Assessment and Space Needs Analysis is completed by SEH, consultant to the Town. The consultant met with Council in a study session on August 25th, and reviewed the Assessment and Analysis. Also, at the meeting, the staff memo identified the schedule for Stan Clauson Associates work to evaluate land use options for Tract G, which includes the current Town Hall, Fire Station sites, park and Town Center West District; including time frame to make a decision on the location for the Avon Police Department. 2.4 OCTOBER 13TH: Study Session – Tract G, Swift Gulch and Lot 5 Development Options, including Public Safety and Town Hall Locations, Financing Options and Decision Schedule Consultants presented the Preliminary Findings Report at the public Study Session. • The consultant and participants at the charette recommended:  The Police Department be located at Buck Creek  Town Hall’s other departments be located at the Mountain Vista Office Building; or, if the building is not available at the Fire Station once vacated by the ERFPD  The current condition of Town Hall requires a renovation or relocation in the near future  Opportunities to repurpose the site of other park uses favored relocation  The Mountain Vista Office Building was the favored location, with the Fire station being noted as an alternate location • Moving forward with a new URA bond, which could generate upwards of $6,000,000 in new revenues; tenant finish of the Mountain Vista Office Building is an eligible cost REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION II 2.5 OCTOBER 13TH: Executive Session Council met in Executive Session : DISCUSSION OF THE PURCHASE AND ACQUISITION OF A REAL PROPERTY INTEREST UNDER C.R.S. §24-6-402(2)(A) AND A CONFERENCE WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE UNDER C.R.S. §24-6-402(2)(B) RELATED TO SUCH REAL PROPERTY DISCUSSION AND FOR THE PURPOSE OF DETERMINING POSITIONS RELATIVE TO MATTERS THAT MAY BE SUBJECT TO NEGOTIATIONS, DEVELOPING STRATEGY FOR NEGOTIATIONS, AND/OR INSTRUCTING NEGOTIATORS, UNDER C.R.S. §24-6-402(2)(E) RELATED TO SUCH REAL PROPERTY DISCUSSION 2.6 OCTOBER 27TH: Study Session – Tract G, Swift Gulch and Lot 5 Development Options, including Public Safety and Town Hall Locations, Financing Options and Decision Schedule  Stan Clauson consultants presented the final draft of recommended land uses.  Town Council directed:  Buck Creek is the preferred location for the Police Station  No changes were proposed for Tract G, with the preferred location for Town Hall being first at the Mountain Vista Office Building  Town Hall Repurposing – Councilor Matt Gennett asked that the repurposing of Town Hall for other uses, should Town Hall relocate, be included in future land use planning work, versus demolition 2.7 NOVEMBER 10th: Modification to the Urban Renewal Plan The URA Authority Board passed Resolution 15-1 to Adopt Minor Modifications to the Town Center West Urban Renewal Plan The action specifically allowed the Mountain Vista Office Building to qualify for Urban Renewal funds 2.8 DECEMBER 8TH: Council Meeting Council sets maximum cost for the Police Department at $5,540,656; and maximum facility size at 11,300 square feet Council agrees to final appropriation of design costs 2.9 JANUARY 26TH: Council Meeting COUNCIL MET IN EXECUTIVE SESSION: DISCUSSION OF THE PURCHASE AND ACQUISITION OF A REAL PROPERTY INTEREST UNDER C.R.S. §24-6-402(2)(A) AND A CONFERENCE WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE UNDER C.R.S. §24-6-402(2)(B) RELATED TO SUCH REAL PROPERTY DISCUSSION AND FOR THE PURPOSE OF DETERMINING POSITIONS RELATIVE TO MATTERS THAT MAY BE SUBJECT TO NEGOTIATIONS, DEVELOPING STRATEGY FOR NEGOTIATIONS, AND/OR INSTRUCTING NEGOTIATORS, UNDER C.R.S. §24-6-402(2)(E) RELATED TO SUCH REAL PROPERTY DISCUSSION 2.10 FEBRUARY 23RD: COUNCIL PASSES RESOLUTION NO. 16-03 REFERRING A POLICE STATION BALLOT QUESTION TO A SPECIAL ELECTION & FIRST READING OF ORDINANCE NO. 16–02 _______________________________________________________________________________________ REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION III SECTION III PURCHASE AND SALE AGREEMENT 3.1 Introduction The Town conducted an appraisal of the building in March, 2014, which calculated a value of $2,042,500. The Points of Colorado appraisal, during the same time, concluded the value of the property at $4,195,000. Both estimates assumed no parking would need to be purchased. The Town and seller negotiated a Purchase and Sale Agreement (“PSA”) with price of $3.2M. The PSA was approved by ordinance, but was subject to approval by ordinance of Certificate of Participation Financing by the Town of Avon. A citizen petition for referendum was submitted for Ordinance 14-18 approving the Certificate of Participation Financing, which Council referred to a special election. Approval of Ordinance No. 14-18 did not pass and the PSA was then terminated. A new appraisal was not ordered for the negotiation authorized by Town Council. Rather, the Town relied on the assumptions for a calculated value prepared by Mr. Mark Kogan. The set price of $1.5 million eventually was negotiated. 3.2 The Property The Property is owned by Points of Colorado, Inc., a Colorado corporation. The purchase is for Lot 4, Mountain Vista Resort Subdivision, including the Phase 1B Office Building in the Mountain Vista Resort Subdivision. Included are all improvements and appurtenances, and the Skier Bronze Statue. Excluded from the purchase are 44 parking spaces designated for the Mountain Vista Office Building and located on other adjacent property owned by Points of Colorado. The Property is being sold in an “as is” condition. Town has been given the opportunity to perform inspections of the building and the title prior to executing the PSA. 3.3 Purchase and Sale Agreement The PSA is attached to this report (See Appendix 1). Specific terms in the PSA are highlighted as follows: Purchase Price: $1,500,000 Deposit: $75,000 Closing Date: June 16, 2016 Inspections: No right of inspection, Property is to be purchased “as is”. Town has already conducted inspections and inspection updates prior to signing the PSA. The inspections are discussed in Section VIII of this Report. Right of First Refusal: The Property would be subject to a Right of First Refusal for 3 years that would allow Points of Colorado to repurchase the Property for $1.5 Million if sold by the Town. Lot 4 Easement: The Property would be subject to an easement on the undeveloped portions of Lot 4 (meaning the area of Lot 4 outside the existing building footprint) which would allow Points of Colorado and Starwood access, utilities, support for a subterranean parking garage abutting the Mountain Vista Office Building foundation, and crediting for shared open space. The Lot 4 Easement REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION III is intended to preserve all of Starwood’s development rights under the existing PUD which were based on access, site coverage and the existing configuration of Lot 4. Common Interest Community Exclusion: Lot 4 would be excluded from the Mountain Vista Resort common interest community, and therefore, would not be subject to assessments or costs related to this common ownership interest community. Conditions Precedent to Closing: There are several conditions that must be satisfied before each party is required to closing on the Property, highlighted as follows: • The Avon Town Council must adopt an Ordinance approving the PSA. [NOTE: the adoption of an Ordinance is subject to the public process in accordance with the Avon Home Rule Charter. Adoption of an Ordinance is subject to the discretion of the Avon Town Council members after conducting public hearings. If the Avon Town Council does not adopt an ordinance then the $75,000 Deposit would be returned to the Town.] • Town must approve a subdivision replat of Lots 2C, 4 and 5 to create the Lot 4 configuration for purchase as requested by the Town. • Lot 4 must be withdrawn from the Mountain Vista Resort common interest community. • The Agreement and Plan of Merger between Interval Leisure Group and Starwood Vacation Ownership must be completed. Ordinance Not Subject to Referendum: Avon Home Rule Charter Section 7.2(a) states that ordinances for the acquisition of municipal properties are not subject to referendum. Additionally, the Colorado Court of Appeals ruled in Friends of Denver Parks v. City and County of Denver, 327 P.3d 311 (Colo.App.2013) that a real estate contract is an administrative action and is therefore not subject to referendum. An ordinance approving the PSA is not subject to citizen referendum in Avon. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION IV SECTION IV AVON TOWN HALL FACILITY ASSESSMENT AND SPACE NEEDS ANALYSIS Short Elliott Hendrickson, Inc. (SEH) 4.1 Introduction The Town Council authorized consultant services to conduct a facility assessment and to estimate the space needs for services in the current Town Hall. The firm of Short Elliott Hendrickson, Inc. (SEH) was hired. SEH’s report was completed on July 12, 2015 and presented to Town Council on August 26, 2016. The full report is provided in Appendix 2. 4.2 Town Hall Facility Assessment The SEH Analysis concluded: “At a minimum, to satisfy building upgrade requirements and met the future space needs, a major building remodel will be required to address the sheer number and extent of issues in the existing shell and interior spaces. As well, we recommend full replacement of all MEP systems and components to meet the programming needs of the departments. It is likely more cost prohibitive to correct all the deficiencies than to build a new facility.” [SEH Report, Page 18] The Assessment stated: • The existing Avon Town Hall facility is out of date with current codes, including ADA accessibility requirements with non-conforming existing conditions that would require extensive remodel to the majority of building shell and floor areas. The ADA deficiencies include inadequate spaces with non-compliant ADA door and turning-area clearances, non-compliant handrails, and non- compliant restrooms, shower and locker facilities. Also currently there is not an accessible access to the basement level, because the elevator only serves the First and Second floors of the building. • A completely new building designed to meet current codes on the same site, or a newly constructed building on a new site, in order to address every issue will be required. • In addition to code issues, there are many operational issues that would require total upgrades of systems throughout the building, including HVAC systems, acoustical partitioning, and energy upgrades, to name a few. The atrium area is noted as having skylight leakage into the ceiling of employee offices. The HVAC system is over 30 years old and in need of complete replacement. The systems require continuous maintenance to keep them running. • It is our recommendation the mechanical systems be replaced to meet the function and operation of the facility. • The structural condition of the building is in ‘good’ to ‘very good’ condition and the building appears to be performing in an acceptable manner. The leaks and the exterior finishes should be repaired as required to maintain water proofing. It appears that the ceiling in the atrium area was installed with slack in the suspension rod system. In order to cosmetically improve the ceiling, it is recommended to adjust the tension rods as required to level the ceiling tiles. • International Building Code issues include inaccessible spaces, inadequately sized means of egress, failure to meet life/safety fire codes for an institutional occupancy, and failure to meet energy code requirements. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION IV • The spaces provided by the police and courts are not accessible per the code requirements in ANSI Standards 117.1, 304, 404.2.3.2, 604.8, 606.6, and 608, nor per the ADA Standards for Accessible Design which have many of the same requirements. ADA is a federal law, while ANSI refers to code requirements. Numerous ADA/ANSI Standard Code violations have been noted throughout the building. These include inadequate space requirements, door clearances, turn- around spaces, restroom, shower, and locker room facilities, and countertop heights. • An institutional occupancy (which includes the holding cells) is required by code to be fully sprinkled. This is a major life safety issue as a person held in these cells would not have the ability to exit the space on their own. • In order to meet current energy codes, lighting systems would need to be upgraded. Exterior walls would need to have continuous insulation added to them. Windows and doors would have to be replaced with energy efficient double pane 4.3 Space Needs Analysis The review and projection of space needs through a planning horizon of 2035 for police department square footage; and, year 2025 for all other departments, found the following square footage needs: The proposed relocation of departments into two new facilities is as follows: DEPARTMENT PLANNING HORIZON CURRENT 2015 PROGRAMMED Police Department 2035 4,788 9,009 All Other Departments 2025 9,007 9,092 Building Support 2025 257 2,145 TOTAL Net Square Footage 14,052 20,246 TOTAL BUILDING GROSS (120%)24,511 SPACE NEEDS ASSESSMENT - SEH, July 2015 DEPARTMENT PLANNING HORIZON PROGRAMMED NEW FACILITY Police Department Joint Public Safety Facility @ Buck Creek 2050 9,009 10,419 All Other Departments/Meeting Community Space Mountain Vista Office Building 2025 11,237 14,733 NEW FACILITY SQUARE FEET REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION V SECTION V MASTER PLANS, REVIEW & UPDATES, ZONING & SUBDIVISION 5.1 Master Plans 5.1.1 The Avon West Town Center District Investment Plan (District Plan) was completed in August of 2007, with the stated purpose to encourage and facilitate revitalization of the planning area (Appendix 3). Specific to Town Hall, the District Plan found the Town Hall building too small for its current use, outdated and lacking energy efficiency. The plan envisioned a new Town Hall that spanned both sides of a new Main Street (Fire Station and portion of parking lot and town park) to serve as a civic anchor. A larger program of commercial/retail, offices, civic uses, affordable and market rate housing was proposed for the facility. Once Town Hall was relocated, the current site would be sold ideally for a high quality hotel. The total projected cost was $18,400,000, with the goal of recouping monies through the sale of the site for the hotel. Since adoption of the District Plan, voters required that any land sale be approved at the ballot, the full Main Street has been developed the pedestrian mall and the economy has been challenging. The Mountain Vista Office Building meets the goals of the District Plan: support Town Hall relocation, provides for office spaces and a civic anchor in close proximity to the library, recreation center and the park and makes the current site available for a dynamic use. 5.1.2 The Master Plan for Harry A. Nottingham Park, 2008 (Park Plan) also identifies the relocation of Town Hall from its current site (Appendix 4). A highly collaborative process, the Park Plan found that once Town Hall was relocated the current site should be made available to the growth of the park, park support facilities, parking and a performance stage. 5.1.3 The Planning Review & Update – Harry A. Nottingham Park Master Plan, Swift Gulch Master Plan and Lot 5 Development Plan (Plan Review and Update) was developed in the fall of 2016 (Appendix 5). Town Council retained Stan Clauson and Associates to assist the community in review all Town-owned Mountain Vista Office Building for future uses. For Town Hall, the Mountain Vista Office Building was identified as a preferred site, followed by the Fire Station. The Plan Review and Update expanded the opportunities for what could happen at the current Fire Station and Town Hall parcels, with adjoining parking lots and parks maintenance buildings. “Strong support was given at the Public Open House as well as in the Council work session for pursuing enhancements to the Park. The support was provided based on the understanding of the greater opportunity in costs of keeping Town Hall at its current location rather than providing community gathering spaces.” Ideas on what would be an approximately 4.5 acre site included field expansion, convention center, mixed use structures, and live/work. The Plan Review and Update is currently being evaluated by the Planning and Zoning Commission for recommendation to the Town Council as a master plan amendment. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION V 5.2 Zoning/PUD Uses No PUD amendment would be required for the Town to use the Property for a Town Hall. The Town approved the Lot C PUD Development Plan on February 22, 2000. Allowed uses include retail stores, restaurants, hotels, financial institutions, professional offices and “additional uses determined to be similar to allowed uses in accordance with the intent of this zone district, to be approved by the zoning administrator.” Town Hall use is essentially an office use and determining that Town Hall is an allowed use under the Lot C PUD Development Plan is within the discretion of the zoning administrator. The only recognized difference in the Avon Development Code is under Table 28-2 where the off-street parking requirement for Commercial Office is three (3) spaces per 1,000 sqft and the off-street parking requirement for Governmental Services and Offices is four (4) spaces per 1,000 sqft. Parking requirements are discussed further in Section VII. 5.3 Subdivision Acquisition will require a subdivision to create a practical consolidated lot that can be separated from the remainder of the Lot C PUD development and associated declarations. The lot proposed in provided in the Sales and Purchase Agreement. It is 10,840 square feet. The proposed subdivision as depicted would include the areas around Lot 4 as well as a 10’ setback on the north east and northwest sides of the building. Sec. 7.16.070 of the Avon Development Code sets forth subdivision procedures. The recommended subdivision will not require public improvements; therefore, the minor subdivision process is applicable. ADC Sec. 7.16.070(d) (2). Minor Subdivisions only require one step approval by the Town Council, after conducting a public hearing, and may be approved by resolution or ordinance. The review criteria for both preliminary and final plat review apply to the minor subdivision process. The building is already constructed on the Property, therefore, the only real issue for consideration is compliance with parking requirements if the Property is purchased and separated from the on-site parking constructed to serve this Property. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION VI SECTION VI PARKING REQUIREMENTS 6.1 Overview of Parking Requirements Sec. 7.16.070 of the Avon Development Code states that the Development Code is applicable to federal, state, county and municipal governments to the extent permitted by law. Sec. 7.16.070(e)(1) states as the first review criteria that the proposed subdivision shall comply with all applicable use, density, development and design standards in the Development Code. As a result, parking requirements are outlined in Chapter 7.28 of the Avon Development Code and are applicable to Town Hall use of the building. Table 7.28-2 states the parking requirement is 4 parking spaces per 1,000 square feet of gross floor area for: • Public and Institutional Uses • Community Services • Government services, offices and facilities Available Parking Requirement Reductions -The Director may determine that a proposed use represents a combination of uses i.e. Government office and community center or Town Hall and Rec Center and apply a 15% reduction. 6.2 Parking Requirements – No additional parking is needed • The Mountain Vista Office Building – 55 Spaces The total gross floor area of the building is 16,273 square feet. The floor area is then reduced by 10% for the purpose of calculating parking requirements per Sec. 7.28.020(g) (3) which is 14,645 sq.ft. The Code requires 4 parking spaces per 1,000 sq.ft. for government services, which equals 59 parking spaces. 59 total parking spaces are required for Mountain Vista Lot 4. Sec. 7.28.020(g)(4)(ii) allows for the submittal of a parking demand study based on the Institute of Traffic Engineers Parking General Manual which can support further reduction of parking based on mixed uses and shared parking. Mixed-use projects can often support a further reduction of required parking by 15% based on this analysis. The Town Hall facility may be considered part of a mixed-use development grouping along with the Avon Recreation Center and Nottingham Park uses. 6.3 Long Term Parking, including Future Recreation Center Expansion • Recreation Center Expansion – 225 - 264 Spaces The parking analysis for the existing Recreation Center and Phase 2 Expansion yielded a total demand for 225 - 264 spaces. • Total Space Demand Projection: 274 – 321 Spaces 6.4 Parking: On-Site and Available in the Vicinity: 337 Spaces • 35 parking spaces are provided in the lot immediately adjacent to the building (owned by the Town and zoned Public) and count toward the minimum required parking • 25 on-street parking spaces are provided on W Benchmark Road immediately south of the building, but these may not be applied to count toward the parking requirement REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION VI • 84 parking spaces are available on the northeast side of the Recreation Center parking lot just west of the building across W Benchmark Road • 39 additional parking spaces are available on the southwest side of the Recreation Center parking lot • 39 on-street parking spaces are provided on both sides of Lake Street • 23 parking spaces are available on the east side of the existing Town Hall building • An additional 38 parking spaces are available on the west side of the existing Town Hall building • 14 on-street parking spaces are available along W Benchmark Road on the south side of the Fire station • 40 new parking spaces may be developed on Benchmark Road, south of The Seasons (Estimated cost $250,000) 6.5 Alternative Parking Scenarios Avon’s Development Code has well detailed provisions for “off-site parking.” Sec. 7.28.020(4) of the Development Code states that the required parking must be on same lot as the building served by the parking, "except as otherwise provided in this Section.” There are two options for off-site parking: 1. Sec. 7.28.020(h) allows off-site parking where the required parking is on a different lot than the lot which contains the building served by the parking if approved by a PUD and if the parking is within 500’ of the building served. 2. Sec. 7.28.020(i) defines Public Parking Districts and Facilities and permits a “Public Parking District” to be defined and approved in the Avon Comprehensive Plan which may be owned by the Town. This option is easier and more straightforward to the nature of the project and surrounding Town property and allows the Town to establish a parking plan for the Town properties owned and designate this area a “Public Parking District”. Staff finds this scenario to be a reasonable solution to meet the parking requirement and be in conformance with the Town’s Development Code. Recommendation A total of 337 parking spaces may be designated in a Public Parking District based on the parking counts outlined above. The Town, therefore, should consider, at an appropriate time, a Comprehensive Plan update to define a “Public Parking District” comprised of Town properties that include the new Avon Town Hall, Recreation Center, Library, Nottingham Park, current Town Hall and Fire Station site. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION VII SECTION VII RENOVATION & RELOCATION OPTIONS 7.1 Introduction The Short Elliott Hendrickson, Inc. (SEH) report reviewed six planning options for three sites, including the existing Town Hall site, Fire Station site and the Mountain Vista Office Building. These options were reviewed by the Town Council at the August 26, 2015, presentation of the SEH report. The Council subsequently, through a series of work sessions reviewed the planning work facilitated with the Clauson and Associates, which provided options for the citing of the Police Department and Town Hall. On February 23, 2016, by motion and vote, the Town Council approved a ballot question for the relocation of the Police Department to the Joint Public Safety Facility at Buck Creek, in an amount not to exceed $6.5M, with debt financing. 7.2 Town Hall Facility Location Options & Estimated Costs Bringing the Avon Town Hall Facility Assessment and Space Needs Analysis, Planning Review and Update for Harry A. Nottingham Park Master Plan, Swift Gulch Master Plan, Lot 5 Development Plan together with the locational decision for the Police Department at Buck Creek, the following table summarizes the facility options and costs for the balance of Town Hall. The lowest cost Town Hall option is acquisition of the Mountain Vista Office Building at $1.5M, with final tenant improvements at $3,091,173, for a total of $4,591,173. When adding in the Police Department at Buck Creek, the total relocation of all Town Hall uses, with Town Hall at the Mountain Vista Office Building, is projected as the least cost option. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION VII ITEM Remodel Town Hall 15,500 SF Demolish Town Hall & Rebuild at Site 13,700 SF Relocate to Mountain Vista Office Building 14,733 SF Relocate to Fire Station 13,700 SF TOTAL PROJECT $ 4,695,744 $ 5,846,502 4,591,173$ 5,837,989$ Demolition for Construction 378,376$ 364,934$ NA NA Demolition after Relocation NA NA 133,330$ 133,330$ Exterior Improvements 322,879$ NA NA NA Interior Improvements 2,385,375$ NA NA NA New Construction NA 3,448,000$ 1,999,630$ 3,639,816$ Site Improvements 48,540$ 134,893$ 14,823$ 240,455$ Sub-total Estimated Construction Cost 3,135,170$ 3,947,827$ 2,014,453$ 4,013,601$ General Contractor General Conditions - 5%156,759$ 197,391$ 100,723$ 200,680$ Total Estimated Construction Costs 3,291,929$ 4,145,218$ 2,115,176$ 4,214,281$ So t Costs GC ee, & , Construction Contingency 1,191,365$ 1,493,334$ 765,492$ 1,415,758$ FF&E 212,450$ 207,950$ 210,505$ 207,950$ Total Building Estimated Costs 4,695,744$ 5,846,502$ 3,091,173$ 5,837,989$ Land + Shell Building Acquisition NA NA 1,500,000$ NA TOTAL ESTIMATED PROJECT COST 4,695,744$ 5,846,502$ 4,591,173$ 5,837,989$ Land Acquisition & Project Costs 6,343,452$ 6,343,452$ 6,343,452$ 6,343,452$ TOTAL ALL TOWN HALL DEPARTMENTS 11,039,196$ 12,189,954$ 10,934,625$ 12,181,441$ TOWN HALL FACILITY LOCATION OPTIONS & ESTIMATED COSTS Administration, Human Resources, Clerk, Planning, Finance and Engineering Courtroom, Council Chambers, Meeting and Community Space Police Department at Buck Creek REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION VIII SECTION VIII BUILDING INSPECTION REPORT & STRUCTURAL ENGINEERING LETTER 8.1 Introduction A commercial Building Inspection Report, dated April 21, 2014, was provided for the Town of Avon by Eagle Eye Home Inspections for the Mountain Vista Office Building. At that time, Points of Colorado repaired roof mounted forced air heating/cooling units, which were identified as a deficiency. Small minor repair items and entryway and sidewalk concrete slabs were accepted by the Town for Town repair. The Town also had two structural engineers review the building: Monroe & Newell (October, 2014) and KRM Consultants (December, 2014). Each firm independently concluded, based upon visual observation, the building to be in good structural condition. The building inspection report and structural engineering review were conducted again in February 2016. 8.2 Building Inspection Report – February 21, 2016 Eagle Eye Inspections conducted a thorough inspection of the building and found minor damage consistent with a building that is 15-years old. The inspection revealed two items related to the HVAC system: “North stairwell space heater fails to produce heat when thermostat is On” and “Outside/return air baffles are in varied positions (same position is expected when all thermostats are in one location and all settings are the same). Recommend further evaluation by an HVAC electronics technician.” As staff believes replacement of the HVAC system as part of the interior finishing will be required after, it is not recommended that repairs be made. Considering, however, that there are at least two (2) months of winter left before the intended Closing and in the interest of avoiding any distraction that may arise from HVAC operating issues during the public review process, staff noticed and suggested to Points of Colorado that they inspect the current HVAC system and perform maintenance or repair, if necessary, so that it is fully operational until Closing. There is a small list of other maintenance items Town staff believes are minor and which Town should accept "as is". There are no other inspection issues that are of concern to the Town staff. The complete report is provided in Appendix 6. 8.3 Structural Observation – February 28, 2016 KRM Consultants updated their independent analysis of the structural integrity of the buildings first completed in December 2014. The firm did not find any changes to the structural soundness of the building and did not observe anything unusual that would lead to believe there is a structural concern with the building. The consultant noted that if the Town is concerned with any potential building settlement, a geotechnical engineer can be hired to conduct additional analysis. Staff is not recommending additional analysis because any ground settlement is expected to have already occurred due to the age of the building. The report is found in Appendix 7. REPORT TO TOWN COUNCIL 140 W Beaver Creek Blvd SECTION IX SECTION IX FUNDING & DEVELOPMENT SCHEDULE 9.1 Funding 8.1.1 Purchase of the Mountain Vista Office Building The adopted 2016 Capital Projects Fund (Appendix 8) includes funds Assigned For: Town Hall Relocation/ Renovation, in the amount of $1.5 Million. 8.1.2 Building Finishes The SEH Avon Town Hall Facility Assessment and Space Needs Analysis projected all construction costs, FF&E and contingencies to be $3,091,173. The Avon Urban Renewal Authority has available funding resources to finance the improvements. Certificates of participation would be the expected debt approach. Acquisition and building finishes do not require any new taxes or tax rate increases. 9.2 Development Schedule Should Town Council approve the purchase of the Mountain Vista Office Building, the development schedule is projected as follows: June 16, 2016 Real Estate Closing June 21 Appointment of Design Committee June 21 – November 1 RFQ for A&E, Design and Bid December – May 1 Construction May 1, 2017 Move in A P P E N D I X 1