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Public Comments 01-10-2017 EagleBend Refinancing                           PO  Box  1130,  Vail,  CO  81658   VailValleyPartnership.com    /    VisitVailValley.com    /    VailValleyMeansBusiness.com    /    VailonSale.com   January  6,  2017       Avon  Town  Council     Town  of  Avon     1  Lake  Street  /  PO  Box  975   Avon,  CO  81620     Dear  Avon  Town  Council  members:       Vail  Valley  Partnership  (VVP)  is  the  regional  chamber  of  commerce  representing  Eagle  County,  Colorado.   Our  organization  has  over  850  member  organizations,  representing  over  80%  of  the  local  workforce   within  the  valley.     As  you  are  aware,  workforce  housing  is  among  the  priority  needs  in  the  Vail  Valley.  It  has  come  to  our   attention  that  a  current  working  group  of  citizens  and  business  interests  have  been  meeting  to  review  a   proposed  restructuring  of  debt  at  Eaglebend.  It  is  also  our  understanding  that  this  committee  is  opposed   to  the  proposed  restructuring  for  a  variety  of  reasons  including:     1.  Models  showing  a  potential  rent  increase  of  up  to  40%  for  up  to  150  households,  or  more   moderate  disruption  of  increases  up  to  15%.   2.  Dependency  on  Low  Income  Housing  Tax  Credits  (LIHTC)  which  involves  taking  on  a  lot  more   debt  in  order  to  provide  cash  out,  and  which  significantly  limiting  the  availability  of  funding  for   capital  replacements  going  forward.   3.  Multiple  hurdles  associated  with  LIHTC  over  9-­‐12  months,  any  one  of  which  could  prove  fatal  to   the  project,  and  a  belief  that  tax  credits  are  better  utilized  for  new  projects.     The  dire  need  for  deed-­‐restricted  workforce  housing  certainly  does  entail  creative  thinking  and  new   approaches  to  mitigate  this  problem;  however,  Eaglebend  is  working  just  fine  the  way  it  is  and  has  been   for  23  years.  It  has  provided  nearly  $1.9  M  as  seed  money  and  assistance  for  other  projects  which  could   never  have  happened  or  survived  without  Eaglebend  assistance.  Eaglebend  is  a  model  of  success  that   other  projects  should  look  toward,  and  the  potential  disruption  to  a  successful  model  is  not  worth  the   risk  associated  with  it.     This  project  checks  numerous  boxes  in  terms  of  meeting  the  needs  of  workforce  housing  in  Eagle  County   and  the  Town  of  Avon,  and  does  so  with  a  thoughtful  approach  to  rent  and  capital  improvements.  We   respectfully  urge  the  members  of  town  council  to  consider  the  many  public  benefits  of  Eaglebend  and  to   avoid  using  it  as  an  ATM  while  putting  294  families  at  risk  of  increased  rent  or  no  housing  at  all,  and  to   follow  the  advice  of  the  citizens  committee.  Thank  you  for  your  commitment  to  affordable  housing.       Best  regards,    Chris  Romer   President  &  CEO     Vail  Valley  Partnership