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TC Packet 01-10-2017 TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, JANUARY 10, 2017 AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 3:30 PM AVON LIQUOR AUTHORITY MEETING BEGINS AT 8:15 PM AVON URBAN RENEWAL AUTHORITY MEETING BEGINS AT 8:30 PM AVON TOWN HALL, ONE LAKE STREET _________________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 1 AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 3:30 PM (SEE AGENDA BELOW) AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 8:15 PM (SEE SEPARATE AGENDA PAGE 3) AVON URBAN RENEWAL AUTHORITY MEETING BEGINS AT 8:30 PM (SEE SEPARATE AGENDA PAGE 4) 1. CALL TO ORDER & ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA 4. EXECUTIVE SESSION 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) 5. MAYOR’S STATEMENT REGARDING ALLEGATIONS REPORTED IN THE VAIL DAILY ARTICLE “AVON SWIM PROGRAM DRAWS CONTROVERSY” (MAYOR JENNIE FANCHER) 6. WORK SESSION 6.1. REVIEW OF THE TOWN OF AVON 2017-2018 STRATEGIC PLAN (TOWN MANAGER VIRGINIA EGGER) 6.2. REVIEW AND DISCUSSION OF THE DRAFT TOWN OF AVON EMPLOYEE HOUSING VISION & PHILOSOPHY (TOWN MANAGER VIRGINIA EGGER) 6.3. REPORT ON FINANCING OPTIONS FOR EAGLEBEND AND KAYAK CROSSING AFFORDABLE HOUSING PROGRAMS (COUNCILOR SCOTT PRINCE) 6.4. REVIEW AND DIRECTION CONCERNING TERMINATION OF THE BENCHMARK PROTECTIVE COVENANTS (TOWN ATTORNEY ERIC HEIL) 7. MOTION TO CONTINUE REGULAR MEETING FOR A MEETING OF THE LIQUOR LICENSING AUTHORITY AND A MEETING OF THE URBAN RENEWAL AUTHORITY 8. CALL TO ORDER & ROLL CALL OF THE CONTINUED REGULAR MEETING 9. ACTION ITEMS 9.1. REVIEW AND 2017 APPOINTMENTS TO BOARD, COMMITTEE, AUTHORITY AND OTHER AGENCY APPOINTMENTS (MAYOR JENNIE FANCHER) 9.2. REVIEW AND ACTION ON THE TOWN OF AVON 2017 FREE EVENTS PROGRAM AND REQUESTED FUNDING SUPPORT (DIRECTOR OF FESTIVALS AND SPECIAL EVENTS DANITA DEMPSEY) 9.3. REVIEW AND APPOINTMENT OF AD HOC SPECIAL EVENTS COMMITTEE (MAYOR JENNIE FANCHER) 9.4. REVIEW AND ACTION ON ANY CHANGES TO THE 2017 REGULAR AND RETREAT MEETING SCHEDULE (TOWN MANAGER VIRGINIA EGGER) TOWN OF AVON MEETINGS FOR TUESDAY, JANUARY 10, 2017 AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 3:30 PM AVON LIQUOR AUTHORITY MEETING BEGINS AT 8:15PM AVON URBAN RENEWAL AUTHORITY MEETING BEGINS AT 8:30 PM AVON TOWN HALL, ONE LAKE STREET _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 2 9.5. CONSENT AGENDA 9.5.1. APPROVAL OF RESOLUTION 17-01, DESIGNATING THE LOCATIONS FOR POSTING THE NOTICES OF PUBLIC MEETINGS (EXECUTIVE ASSISTANT TO THE TOWN MANAGER PRESTON NEILL) 9.5.2. APPROVAL OF REQUEST TO EXPAND THE SPECIAL EVENT PRODUCTION ASSISTANT FROM A SEASONAL TO A FULL-TIME POSITION AND APPROVAL OF ADDITIONAL FUNDING FOR THE POSITION FROM THE 2017 GENERAL FUND CONTINGENCY LINE ITEM (DIRECTOR OF FESTIVALS AND SPECIAL EVENT DANITA DEMPSEY) 9.5.3. APPROVAL OF THE DECEMBER 13, 2016 REGULAR MEETING MINUTES (TOWN CLERK DEBBIE HOPPE) 9.5.4. APPROVAL OF THE DECEMBER 20, 2016 SPECIAL MEETING MINUTES (EXECUTIVE ASSISTANT TO THE TOWN MANAGER PRESTON NEILL) 10. WRITTEN REPORTS 10.1. WINTER TRANSIT PILOT PROGRAM 10.2. PURCHASE AND USE POLICY FOR TOWN COUNCIL TABLETS UPDATE 10.3. SUMMARY OF UPPER EAGLE REGIONAL WATER AUTHORITY DECEMBER 15, 2016, REGULAR BOARD MEETING 10.4. THE MOUNTAIN PACT: OUTDOOR REC ACT PRESS RELEASE 11. MAYOR & COUNCIL COMMENTS & MEETING UPDATES 12. ADJOURNMENT Page 1 of 1 MAYOR’S STATEMENT Regarding Allegations Reported in the Vail Daily Article “Avon Swim Program Draws Controversy” January 10, 2017 The Vail Daily published an article on December 23, 2016 entitled, “Avon swim program draws controversy”. The focus of the article questioned whether Council member Scott Prince had a conflict of interest in voting on the 2017 annual budget, which included appropriations for the new Town operated swim program at the Avon Recreation Center. The article also accuses Virginia Egger, Town Manager, of bullying Theresa Scala out of business with the Avon swim program. The unfortunate and misguided attack on both Council member Scott Prince and Town Manager Virginia Egger states inaccurate facts and takes the spotlight off of all things that are positive related to the Town’s swim program. I would like to take the time to correct those facts that are inaccurate. To set the record straight, there was no conflict of interest or appearance of impropriety by Council member Scott Prince in voting on the 2017 annual budget. Under the Town Code of Ethics, the Avon Town Council determines whether a conflict of interest exists. Council member Scott Prince previously disclosed his interest in the swim program and Council was well informed of the financial details of the Town operated swim program for 2017. There was no concern by the Avon Town Council that Council member Scott Prince had a conflict of interest in voting on the 2017 annual budget. Town Attorney Eric Heil has provided a legal memorandum regarding the Town Code of Ethics and conflict of interest considerations related to the swim program and voting on the 2017 annual budget which thoroughly explains the facts and chronology of the swim program evaluation and actions by Council. The process to evaluate the Avon swim program was complete and professional, with a great deal of outreach to the community. The Town Council determined that a Town operated swim program was in the best interest of the Avon community. The program has proven to be immediately successful and well received by the Avon community. In addition, the guidance of the Town Manager throughout the evaluation process was evidenced to be both professional and inclusive of community interests. There was no bullying or unprofessional conduct at any time during this process. The Avon Town Council is proud of the new Town operated swim program and we look forward to better serving the Avon community with this valuable program. The article grossly overstates the cost of the Avon swim program as $100,000. The actual cost in the 2017 budget was approximately $41,000, which is expected to be reduced to zero as the swim program grows over the next several years. The Vail Daily article attacked the integrity and professionalism of a Council member and the Town Manager for a program that is truly designed to best serve our community. I find this disappointing and certainly worthy of pointing out the inaccuracies in the public record. Through the entire process the best interests of the Avon community has been at the forefront. Heil Law & Planning, LLC Office: 970.468.0635 1022 Summit Drive Dillon, CO 80435 E-Mail: eric@heillaw.com e-mail: ericheillaw@yahoo.com H EIL L AW TO: Honorable Mayor Fancher and Town Council members FROM: Eric J. Heil, Town Attorney RE: Avon Swim Program and Vail Daily Article DATE: January 5, 2017 SUMMARY: An article entitled “Avon swim program draws controversy”, dated December 23, 2016, raises questions about a potential conflict of interest for Council member Scott Prince by voting for Town’s annual budget. The article also includes several quotes and statements from myself as the Town Attorney which suggest that I have some concern about a potential conflict of interest, or appearance of impropriety, resulting from Council member Prince voting on the annual budget. I read the Vail Daily article on-line before the print edition was distributed and I contacted John LaConte to express strong concerns that the article did not fairly or accurately represent my conversation with him concerning conflict of interest considerations related to a Council member voting on an annual budget. I strongly suggested that the article should be retracted and re-written, which suggestion was declined. This memorandum provides my legal advice to the Avon Town Council concerning a council member voting on the annual budget and potential conflict of interest items and clarifies certain assertions in the Vail Daily article. First, I apologize to the Avon Town Council, and in particular Council member Prince, for any participation on my part in the Vail Daily Article whereby it appears that I am providing legal advice on behalf of the Town through the Vail Daily. My legal advice concerning Town matters should flow directly from myself to the Avon Town Council and Town staff. Public allegations, suggestions or innuendos of conflict of interest or impropriety are very serious and it is understandably confusing at best for Council members to read such allegations along with statements from myself in a local newspaper. For the record, I have never questioned the integrity or impeccable ethical commitment of Council member Scott Prince with regard to any Town matter. FACTS: The Town of Avon began an evaluation process of the swim program in February, 2016. After several community meetings, the Town issued a Request for Proposals in early summer of 2016. The Town formed an Ad Hoc Bid Review Committee to review proposals. Council member Prince has a family member who has been enrolled in the swim program at the Avon Recreation Center, both while the program was run by a private for-profit organization through last fall and since then as the Town of Avon’s program. The enrolled family member also participates in the competitive swim portion of the Town’s program. The participation and membership in the swim meets varies significantly from meet to meet. Participation in all swim programs, including the competitive group, increases substantially during the summer. Council member Prince recused himself from participation on the Ad Hoc Bid Review Committee to avoid any question of conflict of interest or appearance of impropriety. Furthermore, Council member Prince recused himself from an executive session on August 9, 2016 concerning the existing for-profit swim program lease with the Town of Avon. As a result of the responses to the Request for Proposals and the recommendations of the Ad Hoc Committee, John Curutchet, Director of Recreation, proposed that the Town of Avon establish and administer a Town operated swim program in lieu of the existing for-profit swim school. The 2017 Annual Budget included an appropriation for the Avon Swim Program as a new Town operated program, which was presented in a September 27, 2016 Town staff memo as a $41,485 subsidy (meaning expenditures in excess of projected revenues) for 2017. The September 27, 2017 memorandum detailed the projected M EMORANDUM & PLANNING, LLC Avon Town Council Avon Swim Program/Vail Daily Article January 5, 2017 Page 2 of 2 revenues and costs of various components of the swim program, including the USA Swim and Swim Meet Travel Expenses. ETHICS ANALYSIS: The Town of Avon has adopted a Code of Ethics under its home rule authority which supersedes both the statutory Code of Conduct and common law on ethics under Section 2.30.030 – Finding of local concern and Section 2.30.040 – Effect of common law. Section 2.30.060 Conflict of Interest lists eleven conflicts of interest and Section 2.30.070 – Exemptions lists four exceptions which supersede the listed conflicts of interest. Exempted from a finding of conflict of interest is Section 2.30.070(1) “Accepting or receiving a benefit as an indirect consequence of the performance of an official act” and Section 2.30.070(2) “Taking official action when such officer is similarly situated to other Town residents, such as adopting general land use regulations, owning property within a special or local improvement district, voting for taxes or bonds, adopting ordinances of general applicability or otherwise acting upon matters involving the common public interest, . . . .” I had advised Council member Prince that I felt that the swim program was a matter involving common public interest and any Council member is similarly situated to other Town residents with regard to the benefits of a swim program open to the general public. Council member Prince twice disclosed his interest in the swim program, including disclosure to the Council when recusing himself from participation in executive session in August, 2016. Section 2.30.080 – Disclosure of conflict of interest in Town Council action provides that any member of the Town Council shall disclose a potential conflict of interest and that any member of the Town Council may raise the issue of a potential conflict of interest concerning another Council member. Section 2.30.080 also states in part that “The Town Council shall determine whether a conflict of interest exists.” Council member Prince did recuse himself from participation with an ad hoc committee and recused himself from participating in an executive session concerning the prior for-profit lease agreement to provide a swim program at the Avon Recreation Center; therefore, Council was aware of any potential conflict of interest by Council member Prince prior to voting on the annual budget. Furthermore, Council was also informed in detail of the line items for revenue and expenditure of various components of the 2017 swim program as described in the September 27, 2016 Town staff memorandum. Considering the disclosure by Council member Prince of his interest in the swim program to Council and the explanation of financial details of the swim program prior to consideration of the 2017 budget, and considering the specific exemptions from conflict of interest in Sections 2.30.070(1) and (2), I do not believe any conflict of interest issue exists with regard to Council member Prince voting on the 2017 annual budget. Ultimately, under the Town Code of Ethics, any finding of a conflict of interest, including the appearance of impropriety, is a determination by the Town Council, not the Town Attorney. The Town Code of Ethics does not include provisions for retro-active determinations of conflict of interest for matters upon which Council has already acted. In this circumstance, there is no new information available to Council that was not available prior to taking action on the 2017 annual budget. Lastly, Section 5.5(b) of the Avon Home Rule Charter states in part, “Every Council member who is present must vote upon all voting matters unless excused by the Town Code of Ethics, this Charter, or rules and procedures for Council meetings adopted by ordinance.” Therefore, absent a finding of conflict of interest by the Avon Town Council, Council member Prince was required to vote on the 2017 annual budget. Thank you, Eric TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Virginia C. Egger, Town Manager Meeting Date: January 10, 2017 Topic: REVIEW OF THE TOWN OF AVON 2017-2018 STRATEGIC PLAN OVERVIEW Attached is the Town of Avon 2017-2018 Strategic Plan, which was adopted by Resolution 16-19 on June 28, 2016. The Strategic Plan is adopted as the first action by Council to direct the preparation of the multi-year budget. One work item, the update of the 2006 Comprehensive Plan, was not completed by the 2016 Strategic Plan update target date of December 31, 2016. Completion of the plan, including adoption, is now forecast by April 1, 2017. Should Council have changes to the Strategic Plan, action on the plan will be presented at a subsequent Town Council meeting for adoption by resolution. TOWN OF AVON 2017-2018 STRATEGIC PLAN Adopted by the Avon Town Council Resolution 16-19, Series of 2016 June 28, 2016 2017-18 STRATEGIC PLAN June 28, 2016 Purpose of the Strategic Plan The Strategic Plan is developed and adopted to guide decision-making and provide the structure for ensuring investments and programs reflect Council priorities in achieving the vision and adopted plans of the Town of Avon. This work of the Council has been done since 2013, when the Town’s first Strategic Plan was developed and adopted at regular Council meetings, with meeting notice. In July of 2015, the Town Council provided the opportunity for residents and businesses to identify the most important issues in the Town through civic engagement outreach at open houses. The outreach was specific to the development of a community survey, which was distributed to all residential households and businesses in Avon on August 3, 2015. Results were presented to Council on September 22, 2015. The results have aided the Council in identifying priorities over the next several years and have provided information as to other methods to engage the public in the vision and strategic planning of the Town. The Strategic Plan is updated each year to reflect dynamic change, as may be needed, and to present to the Avon community the important work planned by the Town over the planning period.  The following section presents the Strategic Plan Vision, which provides a dynamic overview describing the way of life in Avon, the values the community holds and serves as a comprehensive statement regarding the focus and directed outcomes of the Town’s work.  From the Strategic Plan Vision, four key outcomes have been identified to set the prioritized work of the Town. The four outcomes, with successes, challenges and strategies to achieve each vision are detailed, resulting in a Strategic Plan.  Once the Strategic Plan is adopted, a budget is prepared to meet the multi-year program, followed by each department submitting a business work plan to the Town Manager identifying the timing and process for implementing each strategy. Progress on the work plans are monitored to ensure outcomes are met. Pa g e 2 2017-18 STRATEGIC PLAN June 28, 2016 Strategic Plan Vision “… To provide a high quality of life, today and in the future, for a diversity of people and interest, and to promote their ability to live, work, visit and recreate in the community.” TOWN OF AVON COMPREHENSIVE PLAN, REVISED MARCH - 2008 The Town of Avon, surrounded by natural beauty, is today a strong community, which will maintain a focus on families and workers, and that will build on its strengths to become a nationally and internationally recognized year-round mountain resort community. Committed to providing a high level of municipal services for our citizens and visitors, and the stewardship of our natural resources, Avon will expand its cultural, recreational and educational offerings in partnership with our broader community and regional public and private sector agencies, thereby ensuring sustained economic vitality and a vibrant community experience. Recent resort-oriented accommodations projects in Avon are of a higher standard than the Town attracted at its founding and in its early years. It is this superior level of quality development that Avon believes will be its comparative advantage in the future, and, therefore, will work to attract and promote these types of developments by ensuring Town plans and incentives are constructed in a manner which provides the development community clear and timely information; and by steadfastly maintaining a professional and solution-oriented municipal business. The Town will continue to value and support our full-time and part-time resident population by providing an exceptional level of municipal services and by working to retain existing businesses as the Town seeks to expand its retail and commercial base, while fostering our sense of community through both our spirit and the built environment. The importance of vibrancy and activity within the Town will be supported by attracting an array of new and diverse cultural and recreational events to Avon which are in concert with the values of our community and serve to nurture a cohesive sense of place and public. It is the Town of Avon’s elected officials and staff commitment to fiduciary responsibility, effectiveness and efficiency in providing government services and a practiced belief in open and transparent governance that will lead the successful implementation of this vision for the growth and development of Avon. Pa g e 3 2017-18 STRATEGIC PLAN JUNE 28, 2016 Pa g e 4 Strategic Plan Fiscal Years 2017-18 SUPPORT A STRONG COMMUNITY, BUILDING ON STRENGTHS AS A YEAR-ROUND MOUNTAIN RESORT COMMUNITY The Town will continue to value and support our community through a strong and diverse economy, attentive to business retention and proactively partnering with the private sector to expand Avon’s retail and commercial base. The Town’s commitment to planning for future growth; openness to new community development trends; and, recognition of private property interests and the costs of doing business with the Town, sets forth a dynamic relationship for the successful construction of the built environment and business growth. RECENT SUCCESSES MEDICAL OFFICE BUILDING TCO/CO - ELEMENTARY SCHOOL STREET SAFETY IMPROVEMENTS - DEVELOPMENT OF E/WBC BLVD WALKABILITY DESIGN TEST & FINAL PLAN - WAYFINDING SIGNAGE - BUS SHELTER CONSTRUCTION – MARKETING PLAN COMPLETED – WILDRIDGE LOT SPLIT REGULATION UPDATE CURRENT CHALLENGES SHORTAGE OF AFFORDABLE LOCAL HOUSING FOR WORKERS & SENIORS - FEW HOUSING OWNERSHIP OPPORTUNITIES - CHANGING DEMOGRAPHICS OF THE SKI INDUSTRY & INCREASED COMPETITION STRATEGIES Tier 1 Priorities  Develop Town of Avon Housing Guidelines, including but not limited to an employee housing resident goal  Develop diverse options for local working housing through public –private partnerships  Invest in multi-modal improvements prioritizing walkability and bicycle use on streets, with transit, parking and wayfinding  Bid and construct approved E/WBC Boulevard walkability plan in one or two phases depending on cost  Complete walkability plan for the remainder of the Avon core as an initial phase of the development of a comprehensive parking and multi-modal transportation plan, including the remediation of sidewalk gaps  Fully support Avon transit as a key element of a walkable community, including funding of a Town late night transit loop; testing taxi, dial-a-ride or transportation network company (e.g., Uber) services for low-ride routes, including Wildridge; stay attentive to the potential role of autonomous cars  Determine funding for a Town of Avon internal late night bus  Proactively partner with ECO and other Eagle County jurisdictions to fully consider transit consolidation opportunities, expansion of commuter service for employees who work late shifts and other transit initiatives to improve service and efficiency  With consultant services, prepare master land use plans for Tract G, Lot 5 and Swift Gulch, building on the Stan Clauson Associates, November, 2015, initial plan; and a comprehensive parking plan for the Town’s commercial core. In the Tract G planning, evaluate expansion of the Recreation Center and a parking garage. Engage a citizen committee to serve as a stakeholder group for consideration of the relocation of the Hahnewald Barn, Blacksmith Shop and Cabin in the Town of Avon. The consultant will also prepare 2017-18 STRATEGIC PLAN June 28, 2016 Pa g e 5 a parking plan for Town of Avon commercial core. The planning will be an inclusive process with the greatest civic engagement from the initial meetings through Planning and Zoning Commission recommending action and Council adoption hearings.  Analyze the current Real Estate Transfer Tax primary exemption of $160,000 as a mechanism to increase affordable opportunities for homeownership in Avon to support employee housing shortages for Avon businesses; as well as explore other regulatory and revenue generating options, including voluntary contributions to support the development of employee housing  Evaluate the tiers of the Avon water tap fee to ensure that the fee accounts fairly for residential home sizes.  Monitor the status of the Town’s request to the USFS, under the Town of Avon – USFS Memorandum of Understanding, to study USFS Road 779, also known as the Metcalf access road, for progress through the planning process and budget funds for the development of the road access and/or parking lot. Tier 2 Priorities  Evaluate the formation of a special improvement district to improve the facades of the Avon Center, Comfort Inn, First Bank, and other properties along E/W Beaver Creek Boulevard, including development of public spaces  Map railroad right-of-way and Town easements to evaluate transportation options  Work with local merchants on a bike sharing program On-going  The Town shall be proactive in outreach to the Elementary School and communities to the west of the school to fully include these populations in 1) decisions of the Town, and 2) assessing and funding service, capital, maintenance and infrastructure needs; with consistent and robust outreach and marketing of the Towns programs, such as Recreation Center swim lessons, to improve accessibility and greater participation in programs and activities  Work proactively with the owners of vacant commercial property to find leaseholders and/or redevelopment projects and, when appropriate, 1) Utilize Urban Renewal Authority tax increments generated from the existing district or in a potential new Urban Renewal Authority district, and/or 2) Other economic development incentives including tax rebates, zoning amendments, etc.  Maintain a strong partner relationship with the Avon business community, nonprofits, Walking Mountains Science Center, Vail Leadership Institute/Vail Centre and developers.  Actively employee the service of the Vail Valley Partnership in meeting and working with Avon’s businesses  Throughout the year, Liaison Appointees and Town Manager will meet with respective principals for developments in the Town of Avon to discuss current issues, development needs and opportunities 2017-18 STRATEGIC PLAN June 28, 2016 Pa g e 6 Strategic Plan Fiscal Years 2017-18 PRESERVE & ENHANCE THE NATURAL ENVIRONMENT Maintaining a strong foundation for the stewardship of Avon’s natural resources is a top commitment by the Town. Avon will promote sustainability through the funding of programs and projects to protect the Town’s and the regions clean waters and clean air. RECENT SUCCESSES UERWA UNALLOCATED POLICY ADOPTED – WATER ORIENTATON FOR TOWN COUNCIL – WILDFIRE COORDINATION WITH ERFPD FOR HOMEOWNER OUTREACH – MOUNTAIN STAR FUNDING AGREEMENT - CURRENT CHALLENGES POTENTIAL COLORADO WATER COMPACT CALLS & SHORTAGES - WILDFIRE POTENTIAL - POTENTIAL LONG-TERM DROUGHT IMPACTS - EAGLE RIVER PROTECTION - CLIMATE CHANGE - RESOURCE COST ESCALATION STRATEGIES Tier 1 Priorities  Evaluate all Town projects to the greatest extent possible under an objective of climate change mitigation, considering financial feasibility of cost reductions and beneficial impact to the environment  Amend the Town’s landscape code to more effectively replace vegetation which has been removed  With the expertise of the UERWA, develop outdoor landscape guidelines/regulations to reduce water use and off-site impacts, such as fertilizer run-off, which can affect the Eagle River  Assess the Town's public tree stock in the park and in right-of-ways for timely replacement  Proactively ensure trees on public and private property do not host and spread viruses; remove dead trees with a well-developed landscape program  In planning for the new Police Station and Town Hall, adopt a paperless strategy to reduce waste and support files, etc. Tier 2 Priorities  Consider adopting a “pay-as-you-throw” refuse system and evaluate franchise agreements for waste haulers  Consider legislation to end the use of plastic bags by retailers in the Town of Avon  Take the lead role in working with the UERWA to assess and potentially partner with the Aspens Mobile Home Village to improve and/or replace the property’s water distribution system to eliminate water loss  Develop a plan to improve the visual gateway and corridor along I-70 On-going  Partner with Eagle County and its political jurisdictions to implement the Eagle County Climate Action Plan  Participate as a member of the Urban Run-off Group to evaluate and support, as appropriate, needed Eagle River improvements 2017-18 STRATEGIC PLAN June 28, 2016 Pa g e 7 Strategic Plan Fiscal Years 2017-18 DEVELOP INCLUSIVE & DIVERSE ECONOMIC, EDUCATIONAL & CULTURAL OPPORTUNITIES The importance of vibrancy and activity within the Town will be supported by partnering with existing special events and attracting an array of new and diverse cultural, educational and recreational events to Avon, which meet the Town’s brand and are in concert with the values of our community and serve to nurture a cohesive sense of place and public. RECENT SUCCESSES MAIN STREET MALL/PAVILION DIVERSE EVENT & FESTIVAL ACTIVATION - MAIN STREET MALL COMPLETION & ACTIVATION COMPLETION OF REGIONAL TRAIL AND METCALF CLIMBING LANE – EXPANSION OF MOBILE CART PROGRAM AND FOOD TRUCK PROGRAM AT NOTTINGHAM PARK - PLAYGROUND DESIGN COMPLETED WITH CITIZEN COMMITTEE – MARKETING PLAN COMPLETED – TRAILS MASTER PLAN UPDATED CURRENT CHALLENGES IDENTIFYING & NURTURING A DIVERSE & SUSTAINABLE YEAR-ROUND SCHEDULE OF CULTURAL EVENTS - SUMMER REVENUE, WHEN MEASURED BY SALES TAX, LAGS WINTER RECEIPTS STRATEGIES Tier 1 Priorities  Prepare, with consultant services, a GOCO grant to relocate and upgrade the Harry A. Nottingham Park Playground; with successful funding and grant match construct the new Destination Jump, Splash, Learn playground  Continue to solicit, develop and fund, in partnership with qualified producers, a diverse program of vibrant arts, educational, cultural and recreational offerings at the Pavilion & Mall, as directed through the annual Town Council review of all offerings. In particular, seek to add live theater as a desired multi- day or evening festival. Expand use of the Pavilion in shoulder seasons to local band productions, which are low key and low budget, such as a battle-of-the-bands or open mike nights.  Implement the adopted Avon Recreational Trails Plan as prioritized and adopted by the Avon Town Council, as soon as possible; pursue construction grants Tier 2 Priorities  Build photo monuments around the commercial core to memorialize Avon’s history  Evaluate a Scientific and Cultural District to provide funding to Walking Mountains educational programming and Avon’s cultural activities  Identify locations for the installation of outdoor percussion instruments and fund in the Capital Projects Fund, when feasible 2017-18 STRATEGIC PLAN June 28, 2016 Pa g e 8 On-going  When approving Town funded or supported festivals and events which offer alcoholic libations, require that the sponsoring non-profit is an Avon community grant recipient or locally based nonprofit.  Support regional World Class events and the Walking Mountains School  As appropriate, share the results of the Community Survey with potential business interests in terms of types of businesses and services desired in Avon  Maximize the grant resources available through potential sources available such as through the Office of Economic Development and International Trade, including its new Outdoor Industry Recreation Office; a Scientific & Cultural Facilities District, and Department of Local Affairs 2017-18 STRATEGIC PLAN June 28, 2016 Pa g e 9 Strategic Plan Fiscal Years 2017-18 PROVIDE A RESPONSIVE, CUTTING-EDGE & EFFECTIVE GOVERNMENT Ensure that Town government is managed and operated as a “competitive” business and in a manner which is client-focused and solution-oriented, meeting the highest standards of fiduciary responsibility, implementing best practices, and using Town resources effectively and efficiently in each department. Ensure the Avon Police Department is fully invested and highly successful as a community policing agency for the Town. Provide for the development of capital projects, which support the community-resort economy, and promote the Town brand through a five-year capital investment plan, utilizing appropriate funding mechanisms such as pay-as-you- go, new mill levy and/or current tax receipt long-term debt. Support a work culture that is flexible, innovative and resilient to change. RECENT SUCCESSES COUNCIL STRATEGIC PLAN ADOPTED – POLICE STATION DESIGNED & BALLOT ISSUE FOR FUNDING APPROVED – PURCHASE OF NEW TOWN HALL - BALANCED BUDGETS/RESERVES MAINTAINED - CIVIC ENGAGEMENT PROGRAMS - EXPENDITURE SAVINGS - DEFFERED MAINTENANCE FUNDING CURRENT CHALLENGES CIVIC ENGAGEMENT OUTREACH CHALLENGES - LABOR FORCE COMPETITION - COMPETING FOR GRANTS FOR PUBLIC PROJECTS – FULL IMPLEMENTATION OF COMMUNITY POLICING PRACTICES IN THE POLICE DEPARTMENT STRATEGIES Tier 1 Priorities  Complete construction of the new Police Station at the Public Safety Facility and staff relocation, in an amount not exceed $6.5 million dollars  With Design Committee oversight, complete construction of the new Town Hall and staff relocation, in an amount not to exceed $3.0 million dollars  Expand the participation in the Second Annual Town Clean-up Day with earlier marketing and community picnic after the completion of the clean-up  Implement the Marketing Plan’s 2017 priorities: 1) Pool marketing resources among departments for cross promotion and integrated communication; 2) Develop partnerships with local and regional businesses to keep these entities updated on Town priorities and activities; 2) Continue Town Council festival booth outreach, host coffee chats and create stand-alone displays; 3) Evaluate 2016 wayfinding investments and expand for the visitor/resident experience; 4) Create a regional media strategy; 5) Focus social media by audience; and 6) Rebrand transit  Support the Police Department under a “community policing” philosophy through outreach to other resort communities to learn about successful practices, implementing and monitoring successful practices; and through analyzing call data and workloads to schedule and direct policing duties under the best practices community policing standards for resort communities  Participate in the Mountain Connect broadband community; develop a program to ensure fiber is proactively developed in Avon as growth occurs PAGE 10 of 10  Identify location(s) and cost(s) for the development of one or more dog parks in Avon or nearby in partnership with Eagle-Vail  Develop a pedestrian lighting plan for Nottingham Park to increase late night safety Tier 2 Priorities  For Nottingham Road, conduct an engineering assessment to 1) investigate the stability and condition of the road; and 2) ability to expand the paved surface to improve pedestrian safety and access  In a collaborative work group, with Eagle County, its municipalities and major metropolitan districts, review Eagle County’s revenues and expenditures apportionment  Plan and budget for the development of Lot 5, in the Five Year Capital Improvements Plan, including adding a reserve line item for an equipment and vehicle storage facility and future office space  Seek a short-term title sponsor for the Avon Performance Pavilion. On-going  Maintain Town infrastructure, including all buildings, roads, parks, preserves and trails; appropriating deferred maintenance funds as required, and seeking long term debt approval, when appropriate  Provide strategic Council leadership, consistently practicing open and transparent government  Maintain and consistently evaluate a strong civic engagement program, including ad hoc committees, a bi-annual community survey, volunteerism program, etc.  Maintain fund balances, contingency and reserves to guarantee a fiscal position that is resilient to economic fluctuations; transfer surplus funds to capital projects  Continue to develop annual department work plans, which are measurable and maintain accountability  Hold annual or bi-annual sessions in joint meeting settings with government partners TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Virginia C. Egger, Town Manager Preston Neill, Executive Assistant to the Town Manager Meeting Date: January 10, 2017 Topic: Review and Discussion of the Draft Town of Avon Employee Housing Vision & Philosophy OVERVIEW: The purpose of the work session is to review and discuss the attached DRAFT Town of Avon Affordable Housing Vision & Philosophy. Once Council has finalized the document, a resolution will be presented for adoption. The development of this document stems from the Town of Avon 2017-2018 Strategic Plan, which identifies the following Tier 1 priority: “Develop Town of Avon Housing Guidelines, including but not limited to an employee housing resident goal.” The intent of this document is to assist the Town staff, development community, and the public in understanding the Avon Town Council’s vision, philosophy and policies regarding the various aspects of providing affordable housing in the Town of Avon. Attached is Job & Housing Data from the Eagle County Housing Needs Assessment Update 2015 and the Colorado Department of Labor and Employment to provide information on the demand for affordable housing. The full Eagle County report can be found at: http://www.eaglecounty.us/Housing/Documents/2016_Housing_Needs_Assessement/ ATTACHMENTS: Job & Housing Data DRAFT Town of Avon Affordable Housing Vision & Philosophy ATTACHMENT JOB & HOUSING DATA COLORADO NEW JOB GROWTH NOV 2015 - NOV 2016 55,300 + JOBS Source: CO Dept. of Labor . Table 7. Estimate of Housing Needed to Fill New Jobs, 2011 - 2025 2013 2015 2020 2025 Total Forecasted Jobs 37,260 39,613 44,951 49,176 Increase in Jobs over Prior Period 1,444 2,353 5,338 4,225 Jobs per Employed Person 1.2 1.2 1.2 1.2 New Employed Persons Needed 1,203 1,961 4,448 3,521 Employed Persons/Housing Unit 1.8 1.8 1.8 1.8 Housing Demand Generated (Units) 669 1,089 2,471 1,956 Source: 2015 Eagle Co Needs Assessment The cumulative housing needs in 2015 were estimated at 4,466. For the ten-year period 2015-2025, an estimated 11,960 units are needed to meet housing demand generated by forecasted job growth and the demand from replacement of retirees. Cost Burdened Households in Eagle County 2010 - 20144 (Average) The estimate of the need for workforce housing does not include an estimate of the number of units needed to overcome the problems of households that are “cost-burdened”. However, this is probably the largest and most evident part of the workforce housing problem in Eagle County. The number of cost burdened households is high, and affects people who are already living in the county. Those in Eagle County who fall into the designation of “cost-burdened” • 50.7% of homeowners with a mortgage • 46.5% of renters 46.5% Source: 2015 Eagle Co Needs Assessment UNEMPLOYMENT RATE 2016 2010 2007 EAGLE COUNTY 3.30%8.50%2.80% COLORADO 3.20% Sources: CO Dept. of Labor; 2015 Eagle Co Needs Assessment # 59 AFFORDABLE RENTAL PROPERTIES Buffalo Ridge 244 Kayak Crossing 54 Eaglebend 294 City Market 14 Total Rental 606 Total All Units 665 OWNER OCCUPIED - DEED RESTRICTED TOWN OF AVON AFFORDABLE HOUSING TYPE OF UNIT PAGE 1 OF 4 DRAFT TOWN OF AVON AFFORDABLE HOUSING VISION & PHILOSOPHY TOWN COUNCIL WORKSESSION JANUARY 10, 2017 PAGE 2 OF 4 INTRODUCTION The lack of affordable housing is a well-documented issue in Eagle County. The increasing cost of housing in our region is requiring more people to spend an increasing percentage of their income on housing or to move farther from their work in order to find housing that they can afford. Eagle County completed a Housing Needs Assessment in 2007, and followed up with updates to the Assessment in 2012 and 2016, concluding that in Eagle County, for “the ten-year period 2015-2025, an estimated 11,960 units are needed to meet housing demand generated by forecasted job growth and the demand from replacement of retirees.” The Eagle County Affordable Housing Guidelines, which were amended in 2014, states the following: “Eagle County faces a gap in the availability of ownership and rental housing that is affordable for the local residents. Residents are burdened by high housing payments. Employees are forced to commute long distances. Overcrowding and substandard living conditions are common. According to the annual workforce survey, employers believe that the availability of workforce housing is a critical or major problem in Eagle County." To mitigate this problem, a wide variety of actions are necessary, actions that reflect the diversity of issues and needs to be addressed. In examining the possibilities for increasing choices and ensuring that the income diversity that has historically characterized the Town of Avon is maintained, it has become clear that there is no single solution, but rather a shifting and focusing of priorities toward affordable housing. What is also clear is that the Town of Avon needs to take action to address housing balance, availability, and affordability. To address these issues, the Town must implement policies to promote a diversity of housing opportunities for people of a variety of income levels and household types in Eagle County. The Town of Avon Comprehensive Plan identifies goals to address housing. The goals are: I. Achieve a diverse range of quality housing options to serve diverse segments of the population. II. Provide an attainable housing program that incorporates both rental and ownership opportunities, affordable for local working families, that are attractive, safe, and integrated amongst the community. III. Participate in countywide housing policies and procedures. PAGE 3 OF 4 VISION The Town believes that a strong and diverse year-round community and a viable and healthy local workforce are fundamental cornerstones for the sustainability of the Town of Avon, the Vail Valley and Eagle County. Affordable housing provides housing opportunities for our local workforce and reduces air quality impacts associated with extended commutes to get to work. Affordable housing is also critical to a viable economy, and helps to ensure a vital, demographically diverse year-round community, including our seniors. Limited opportunities and funds, however, mean we cannot build our way out of the housing problem, and we recognize that new affordable housing includes infrastructure costs ranging from transportation to government services, schools and other basic needs. PHILOSOPHY The Town of Avon is committed to providing affordable housing opportunities for persons who are actively employed in Avon and Eagle County as a top priority because it supports: 1. A stable community that is invested in the present and future of the Town. 2. A reliable workforce, which is integral to economic sustainability. 3. Opportunities for people to live in close proximity to where they work. 4. A workforce which can lead to new economic opportunities for local businesses 5. Increased citizen participation in civic affairs, non-profit activities and recreation programs. 6. A diverse demographic, including singles, families and seniors. 7. A reduction in greenhouse gases through reduced commute times and increased walking and biking The Town recognizes that housing the local workforce in the Town is necessary to maintain community and to ensure adequate local and visitor services. Based on this recognized need, the Town’s goals, with respect to affordable worker housing, are to: 1. Provide a variety of unit types, including entry level rental and for sale units 2. Seek to ensure households in affordable housing do not pay more than 30% of household income for rent or mortgage payments 3. Provide that deed restrictions are placed in perpetuity on all Town supported affordable housing 4. Provide housing whenever feasible near transit services 5. Maximize renewable energy and building techniques which reduce greenhouse gases PAGE 4 OF 4 When establishing affordable housing, it shall be the policy of the Town Council to: 1. Place a priority on housing for workers who work within Avon and the area; 2. Develop a mix and variety of affordable housing that is accessible to people of a variety of income levels and household types found in region; 3. To the greatest extent possible, reduce cost burdened households, so that homeowners and renters in affordable housing are not paying more than 30% of their income for housing; 4. Deed restrict all or a determined proportion of the units for workers to ensure in perpetuity units remain used for the purposes supported; 5. Utilize a variety of strategies for affordable housing including development of housing by the private sector, utilization of town-owned land for housing, and use of collected impact fees for housing; and 6. Ensure that units are utilizing to the greatest extent renewable energy, are built with techniques which reduce greenhouse gases and are located near transit The Town has identified the following tools as the primary ways to implement these housing policies. This list of tools is not exhaustive. There are other potential methods of implementing the Town’s affordable housing vision. 1. Form partnerships to develop deed restricted worker housing on Town owned properties 2. Develop Public-Public-Private Partnerships for funding gaps in return for deed restrictions 3. Create partnerships with the business community to develop affordable housing projects 4. Provide Town revenues, including waiver of development and building fees, when needed, to close deed restricted worker housing development funding gaps and/or to reduce the price of deed restricted units and rents 5. Leverage Town-supported or existing affordable housing for new affordable housing development 6. Analyze the current Real Estate Transfer Tax primary exemption of $160,000 as a mechanism to increase affordable opportunities for homeownership in Avon 7. Explore other regulatory and revenue generating options, including voluntary contributions to support the development of worker housing Page 1 of 4 COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Virginia C. Egger, Town Manager Meeting Date: January 10, 2017 Agenda Topic: REPORT ON FINANCING OPTIONS FOR EAGLEBEND AND KAYAK CROSSING AFFORDABLE HOUSING PROGRAMS ACTION BEFORE COUNCIL Town consultant Andrea Davis, Sage Peak Solutions, LLC will present financing alternatives for the Eaglebend Apartments and provide additional information for including Kayak Crossing in 4% Low Income Housing Tax Credit issue. Council direction considerations are presented at the end of this report. BACKGROUND The Eaglebend Affordable Housing Corporation, a private nonprofit, which owns the 294 unit property, approached the Town in early 2016 to begin discussions of refinancing. The project is managed by Polar Star Properties. 1. March 31 - Councilor Megan Burch sent an email to the Town Manager Virginia Egger, letting her know of the EBAHC refinancing interest. 2. April - July – During the period, representatives from EBAHC and the Town, with respective legal counsel, reviewed the EBAHC refinancing proposal.  Payment of the Debt and Town Ownership: The current financing was structured that once the debt is paid, the property will become the property of the Town of Avon.  Balloon Payment Due: $7,345,000 - Current financing has a final balloon payment of $7,345,000, due on July 1, 2021. EBAHC stated that without deferring maintenance on the project and/or raising rents, it will not be able to make the balloon payment. The Town, however, has the option to make the balloon payment at that time.  Property Improvements Needed: In addition, there is a need for additional improvements at the property estimated in June, 2016 at $11,000,000.  Refinancing Timing Penalty There is a significant penalty for early termination: $1,550,000 (June 2016) and estimated on January 1, 2017 at $1,000,000. It is the current low interest rates which are estimated to balance the early payment penalty.  Total New Financing: The total estimated refinancing would be $24,300,000 Page 2 of 4  Requirement for New Refinancing Structure and Town’s Ownership Right - During the period, substantial time was spent by legal counsel:  In evaluating and determining a legal structure to extend the debt beyond 2021, due to restrictions on refinancing the current debt terms.  Identifying the need to develop and execute a Project Agreement between the Town and EBAHC so that the Town would retain right of ownership once the debt was paid, plus other actions the Town currently has to cure debt and to preserve this affordable housing project. [See Attachment 1 from Attorney Eric Heil regarding property ownership.] 3. August 9 and 23 – Executive Sessions - Town Council met in executive sessions on August 9 and 23, 2016, to provide direction to staff in the negotiation for the refinance. At that time EBAHC was requesting a Letter of Understanding, which would outline the steps to be taken to prepare documents for the refinancing in early 2017. 4. September 13 - Council discussed in open session the EBAHC request, after concluding Executive Session was not needed. Council debated whether to pursue an evaluation of financing options. Executive Director of Eagle County Housing and Development Authority Jill Klosterman spoke at the meeting about a restructuring of “6320” debt the County had completed, which then did provide significant new monies, which were deployed for the Castle Peak Senior Housing. Council directed the Town Manager to proceed with hiring a consultant to evaluate financing options for the Eaglebend Apartments, and to complete the evaluation for presentation to the Town Council not later than January 10, 2017. 5. November–December - A Housing Work Group was formed and included EBAHC representatives Gerry Flynn and Craig Ferraro, Town Councilors Megan Burch and Scott Prince; Michael Brown, Alpine Bank; Jack Gardner, Jill Klosterman, Executive Director of Eagle County Housing and Development Authority; Town staff Scott Wright and Virginia Egger and Andrea Davis, consultant to the Town. The Work Group met on November 2, December 15 and December 27th, first setting the goals for the refinancing, and then reviewing refinancing scenarios presented by Ms. Davis, including the iterative process of improving scenarios with specific Eaglebend housing data, correcting calculations where needed, and working to ensure the scenarios were comparable. REFINANCING OPTIONS Attachment A provides the goals for Eaglebend Apartment financing and two financing approaches:  Traditional Refinance  4% Low Income Housing Tax Credit Financing Page 3 of 4 FINANCING SCHEDULE & INTEREST RATE RISK • Interest Rate Lock: The schedules to obtain and interest rate lock for the traditional refinance or 4% LIHTC financing would both take about two months. • Interest Rates: Concerns for another interest rate increase are covered in Attachment A – Timing, where lenders have identified the current interest rates are .10% lower than this time last year and that rates are could be expected to rise gradually over the next six months by not more than 0.5%. Several financing options presented in Attachment A include higher interest rate scenarios. • Time to Reach a Financing Decision: Based upon the lender interest information, it appears there is time over the next 30-60 days for the Town of Avon to fully consider the Town’s options and take public comment, with limited risk. COUNCIL DIRECTION Topics of consideration for the financing include, but may not be limited to the following policy matters: 1. Physical Needs Assessment – New monies of $11 - $13M have been identified for the apartments. Would a physical needs assessment, possible by a third party or presented by EBAHC, be helpful to determining the improvement needs and timing? 2. Reserves Determination for On-Going Capital Improvements – Once the physical need assessment is presented, the Town would then have information to determine what the on- going reserves should be for capital funding. The reserve is an integral component in determining the level of financing which should be pursued. 3. Rent Burden Limitation – Financing options indicate households renting, which are cost burdened at Eaglebend, can be reduced significantly or to zero incidence. Should the town set a goal reducing cost burdened households? 4. Ownership of the Property by the Town – Both approaches allow the Town ownership at the time of the refinancing. Town ownership would secure the property into public ownership and eliminate the need for a separate agreement to meet this purpose. The Town, taking ownership at financing, would require the Town to execute a management agreement for the operations of the property. Polar Star is shown in Attachment A as the management company. 5. Deed Restrictions – Should the Town place a deed restriction on some percent or all units to ensure occupation is for full time workers? 6. Surplus Cash – Either approach can be structured to cover debt, needed capital repairs, reserves, and annual capital maintenance, plus some amount of surplus cash. Should the refinancing be structured to maximize surplus cash without causing rent increases to finance the surplus? And, should the Council look to adopt a policy for how the surplus cash would be used to create new affordable housing units or further improvements, including solar, at existing affordable housing projects? Page 4 of 4 7. Annual Cash Flow - What direction would Council like to provide for excess annual cash flow? If financing results with a balloon payment, should monies be reserved to meet the last year’s balloon? Should excess cash be made available to the Town for new worker housing projects? 8. Additional Information – What additional information should be provided? Heil Law & Planning, LLC Office: 970.468.0635 1022 Summit Drive Dillon, CO 80435 E-Mail: eric@heillaw.com e-mail:ericheillaw@yahoo.com H EIL L AW TO: Honorable Mayor Fancher and Town Council members FROM: Eric J. Heil, Town Attorney RE: Eaglebend Affordable Housing Project legal issues DATE: January 5, 2017 SUMMARY: I was asked to review the Town’s ability to acquire title to the Eaglebend Affordable Housing Project and the implications of the Town acquiring title. Right to Acquire Title: The Town of Avon has the right to acquire the Eaglebend Property at any time under Section 3 Right to Acquire of the Eaglebend Affordable Housing Project Second Amended and Restated Project Agreement, dated August 1, 2006. Section 3 states, “ . . . the Town is hereby granted the right to obtain, at any time, fee title and exclusive possession of the property (including the Project) financed by obligations of the Corporation (including Bonds) free from liens and encumbrances created by the Corporation related to the Bond (but subject to other Permitted Encumbrances, as defined in the Indenture) . . .” by providing funds necessary to pay the balance of any outstanding obligations. Section 7 Title further provides in part that, “Unencumbered fee title . . . to the Project and any additions thereto and exclusive possession and use thereof will vest in the Town without demand or further action on its part when all obligations issued under the Indenture (include the Bonds) are discharged.” Implications of Acquisition of Title: Acquisition of fee title to the Eaglebend Affordable Housing property by the Town may potentially be subject to the restriction on recoveyance imposed by the Avon Home Rule charter. Section 18.3 – Restrictions on sale of municipally-owned real property states, “The Town shall not sell or dispose of municipally-owned buildings or real property in use for public purposes without first obtaining the approval of a majority of the electors voting thereon.” [emphasis added]. The language in the Avon Home Rule Charter is slightly different than CRS §31-15-713 which states that any municipal property held or used for “any governmental purpose” cannot be sold unless approved by the voters. There is no case law in Colorado that specifically addresses whether affordable housing is a “governmental purpose” or “public purpose” but it is likely that the governmental and public purpose would be recognized in any ordinance to acquire the Eaglebend property and would therefore create an argument that the property is in fact held and used for a “public purpose”. It is possible for the Town to assign its right to acquire fee title to the Avon Urban Renewal Authority, to a non-profit formed and controlled by the Town, to a housing authority entity formed by the Town, or to another housing authority or entity like Eagle County Housing or an entity like the Eaglebend Housing Authority non- profit organization, in order to avoid the Town holding title directly. This structure would permit a future sale or reconveyance of the Eaglebend property without voter approval. It is also possible for the Town to acquire the Eaglebend property as a “gift” from the Avon Urban Renewal Authority or other entity, and then the Town would have the power to sell or otherwise dispose of the property without voter approval under Section 18.4 – Bequests, gifts and donations of the Avon Home Rule Charter. An important consideration for acquisition of title is to understand the implications to financing, refinancing and potentially redeveloping the property. An affordable housing project is different than a park, open space, Town Hall or other public facility because the success of providing affordable housing will rely significantly on obtaining low interest financing. Therefore, maintaining flexibility in conveyance of title for financing purposes or for redevelopment purposes is critical. Further research with financing agencies and municipal bond counsel is recommended to determine the best manner of holding title to the property if the Town determines to acquire title. Thank you, Eric M EMORANDUM& PLANNING, LLC ATTACHMENT 1 Sage Peak Solutions, LLC 435 Niagara St. Denver, CO 80220 (303) 241-6370 Andrea.Davis@SagePeakLLC.com www.sagepeakllc.com “Bridging the Affordable Housing Finance Gap” ATTACHMENT 2 Summary of EagleBend Apartments Options for Avon Town Council January 10, 2017 EagleBend Apartments (EBA) has been reviewed to assess various options available for financing the cost of approximately $14.7 million in needed repairs and updates. The financing options were developed to meet the following goals of the Town of Avon and of EBAHC, including: • Maintain affordability levels • Assist cost-burdened households • Maintain building viability for a minimum of 20 years • Ensure sufficient financial resources to perform necessary repairs and capital improvements • Ensure that the EBA remains an affordable housing project into the foreseeable future • Facilitate development of additional affordable housing The options fell broadly into two categories: • Traditional Refi - Refinance the existing debt with new perm debt • 4% LIHTC - Use 4% Low Income Housing Tax Credits (LIHTC) as a funding source The two categories were then “stress-tested” to see how well they held up under a variety of potential circumstances, including various lender requirements, market conditions, and affordability restrictions. The results are summarized in the attached table. All results are preliminary, and further information is necessary to determine the exact benefit of the options. Discussion of the results follows: Number of Cost Burdened Households The EagleBend Affordable Housing Corporation (EBAHC) currently voluntarily restricts rents to levels that are affordable to households making approximately 77% AMI, or roughly $50,000 - $70,000 per year, depending on household size. Area market rents, per the information provided by EBAHC, are approximately 25% higher than the rents at EBA. It was reported that currently 51%, or 151 households, at EBA are cost burdened, meaning that almost half of the households are paying more than one third of their household income for rent plus utilities. At these rent levels, many households have less than $3,000 per month to pay for food, healthcare, transportation, clothing, and other life essentials, and some as little as $1,500 per month. - 2 - If a 4% LIHTC scenario is pursued, it would be possible to restrict rents to levels appropriate for by the current residents. This would allow all residents currently at EBA to have rent levels that are not burdensome. Unfortunately, as it currently stands under the Traditional Refi, it is not possible to lower rents for the deeply impacted households without increasing the rents on the higher income units. Equity Funds One of the benefits of using LIHTC is the access to tax credit equity, provided by the tax credit investor in exchange for the tax credits. Under the Traditional Refi, all of the funds used for the rehab must be repaid. With LIHTC, approximately 25% of project funding, almost $10 million in some scenarios, never needs to be repaid, and functions as “free money”. Funds Available for Other Projects There is some capacity with either scenario to generate funds that could be set aside for other existing projects, such as Kayak Crossing, or future new development to meet the increasing demand for housing in the area. • Traditional Refi – up to $ 3,278,230 • 4% LIHTC – up to $ 10,353,520 In the case of Kayak Crossing, proceeding with EBA as LIHTC would have the additional benefit of allowing the properties to share the cost of financing and capturing contractor efficiencies. Cash Flow EBA is not a new building, and as such, will have ongoing repair and replacement needs that are met from cash flow. In recent years, the project has averaged about $725,000 annually in repair and replacement. It is hoped that after the moderate/substantial rehab, the repair and replacement need would decrease, but all feasible scenarios generated sufficient cash flow to cover even this higher need. Excess cash flow (up to approximately $550,000 per year) is disbursed according to ownership, and will end up with either EBAHC or the Town of Avon. Ownership Although initially presented as a structure that would keep ownership of EBA with EBAHC, it is possible under the Traditional Refi for the Town of Avon to assume ownership upon defeasance of the existing bonds and take a more active role in the role the property plays in the overall economy of Avon. In an LIHTC transaction, the property is typically sold at the end of the 15-year compliance period to the Managing General Partner (Avon or designated entity) for debt and taxes. Control of the property can be further assured through the use of a ground lease, a first right of refusal, and provision of soft debt to the project. - 3 - Property management, under all scenarios, would continue to be performed by Polar Star Properties, assuming that is in the best interest of the property. Balloon Payment As originally proposed, the Traditional Refi contained a balloon payment in year 20 similar to the current situation. All scenarios are currently presented with fully amortizing loans. Although the interest rate is slightly higher in these scenarios, avoiding a balloon payment provides significant project stability. Feasibility/Risk Investigation of several different financing scenarios revealed the following: • Only one of the three Traditional Refi scenarios, the one making the most liberal assumptions about financing terms, was financially feasible. The other two scenarios were unable to support sufficient debt to cover costs. • All three of the 4% LIHTC scenarios, even the one using the worst projected financial market, were feasible. • The worst 4% LIHTC scenario outperformed the best Traditional Refi scenario in all major criteria, including affordability, available funds, and cash flow. Concerns had been raised, based on a conversation that some committee members had with the Colorado Housing and Finance Authority (CHFA), that it might be difficult to obtain CHFA approval for funding. However, this discussion was regarding a large, new project in Gypsum, not EBA. The proposed EBA LIHTC financing structure was submitted to CHFA and reviewed at a staff meeting. Because EBA is an existing, occupied, property, and because rent levels would be restricted according to the existing population, capture rate analysis concerns are not applicable in the way they are for new developments. Additionally, since EBA would not be creating any new units, the development of EBA as LIHTC would not have an adverse impact on any new projects being considered in the area. There had also been concern that bond cap might be a limited resource. However, due to the market fluctuations, several projects that had considered requesting bond cap have been pulled back pending further financing. Additionally, several projects are coming in with assigned cap from their municipalities, so there has been a lower than initially expected demand. According to CHFA receiving a bond cap allocation is not expected to be an issue. Timing There has been some concern about increasing interest rates having a negative impact on financing, adding a sense of urgency to the need to make a rapid decision. However, discussions with lenders have provided some reassurance on this front: • Interest rates are currently .10% lower than they were at this time last year • Rates had been moderately stable for an extended period • Immediately prior to the election, there was a rapid drop in rates, followed by an overcorrection in December, followed by a gradual decrease back to “normal” rates. - 4 - • Rates are not expected to rise more than 0.5% in the next six months, but that increase is likely to be gradual • Even if rates increase that full amount, the increase to debt service is minimal, so there is still adequate cash flow to cover all repair and replacement needs, and there is zero impact to the project. While a Traditional Refi will close more quickly than a LIHTC project, it is possible to lock the rates at approximately the same time, so there is minimal difference in rate risk between the two projects. Although it does make sense to proceed in a diligent manner, the above would indicate that taking the necessary time to make an informed decision should not have a significantly adverse impact on the feasibility of either scenario. Project Summary EBA - Opt 1 - Reduced Rent Refi 10 Stonebridge Dr. Unit Mix 0BR 1BR 2BR 2BR - L 3BR Total % est. s.f.545 545 763 880 975 Market - 7 12 2 6 27 9.2% 100%/Cat 3 - 14 8 2 6 30 10.2% 80%/Cat 2 - 27 43 5 11 86 29.3% 60%/Cat 2 - 15 18 3 6 42 14.3% 50%/Cat 1 - 16 17 3 6 42 14.3% 40%/Cat 1 - 33 20 5 9 67 22.8% Res Mgr - - - - - - - Total Units - 112 118 20 44 294 Cash Flow Market Rent 357,996$ Residential Units 211,574 83% Other Affordable Rent 1,473,324$ Community Space - 0% LIHTC Rent 1,334,352$ Lobby, mech, storage - 0% PHA Subsidy -$ Other Residential 42,315 17% Other Income/Tenant Utility Pymt 851,538$ Commercial - 0% Commercial Income -$ Surface Parking Minus Vacancy/Employee Units 8%(325,394)$ Total 253,889 Effective Gross Income 3,691,816$ Schedule Mo. # Operating Expenses 6,522$ (1,917,399)$ Construction Start Jul-17 1 Replacement Reserves -$ -$ Construction Length (mos)15 Net Operating Income 1,774,417$ Construction Completion Oct-18 16 Lease-up/Sales Period (mos) 1 Debt Service (955,534)$ Full Occupancy Nov-18 17 Capital Costs (725,000)$ Conversion to Perm (mos)1 Cash Flow 93,883$ Perm Financing Closing Dec-18 18 Audit (mos)2 Sources - Construction 8609 Feb-19 20 Construction Loan 18,608,756$ Tax Credit Equity 9%-$ Uses Tax Credit Equity 4%-$ Building/Defeasance Costs Tax Credit Equity - State -$ Permits, Fees, and Studies Tax Credit Equity - ETC -$ Direct Const. Costs - Housing NMTC -$ Indirect Construction Costs Cap Funds/ Reserves -$ Financing Costs Certificate Sales -$ Developer Fee FHLB-AHP -$ Reserves, Lease-up, & Sales Developer Financing -$ Total Project Costs Existing Reserves 1,000,000$ Total Uses State HOME -$ Deferred Reserve Costs 100,000$ Deferred Developer Fee -$ Tax Credit Equity Total Sources - Construction 19,708,756$ Type (4%/9%) Price Sources - Perm Rate Perm Lender 18,608,756$ QCT (y/n)y Tax Credit Equity 9% -$ Construction Loan Tax Credit Equity 4%-$ Term (months)24 Tax Credit Equity - State -$ Rate 3.45% Tax Credit Equity - ETC -$ LTV 80% NMTC -$ LTC 90% Cap Funds/ Reserves -$ Permanent Loan Certificate Sales -$ Term (years)35 FHLB-AHP -$ Amort (years)35 Developer Financing -$ Rate 3.75% Existing Reserves 1,000,000$ LTV 80% State HOME -$ DSCR 1.25 Deferred Developer Fee -$ Total Sources - Perm 19,608,756$ Deferred Developer Fee 0%during Construction Unused Funds (6,767,835)$ 0%during Perm 5-Jan-2017 11,814,647$ 181,185$ 13,500,000$ Building S.F. Summary None 305,149$ 475,610$ -$ 14,561,944$ Underwriting 100,000$ 26,376,591$ Eagle Bend Proforma Current.xlsx Page 1 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 1 EBA - Opt 1 - Reduced Rent Refi Sources 10 Stonebridge Dr. Avon, CO 81620 Construction Construction Loan -$ 0% New Perm Proceeds 18,608,756$ 71% EB-5 Funds -$ Tax Credit Equity 4% -$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing -$ Unit Sales -$ Deferred Reserve Costs 100,000$ Deferred Developer Fee -$ Total Construction Funds 19,708,756$ Overage (Shortfall) (6,667,835)$ Permanent Sources Perm Lender 18,608,756$ Tax Credit Equity 4% -$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing -$ EB5 Repayment Reserve -$ Unit Sales -$ Lease-up Income -$ Deferred Developer Fee -$ Total Perm Funds 19,608,756$ ######## Overage (Shortfall) (6,767,835)$ 0% of Developer Fee deferred during Construction 0% of Developer Fee deferred during Perm Eagle Bend Proforma Current.xlsx Page 2 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 2 Project name:EBA - Opt 1 - Reduced Rent Refi 5-Jan-17 Development Costs Project Address:10 Stonebridge Dr. Avon, CO 81620 Total Costs $ per Unit $ per SF Affordable Market % of Total 4% Basis 9% Basis Land And Buildings Land Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Existing Structures -$ -$ -$ -$ -$ 0.0%-$ xxxxx Defeaseance of Bonds 11,814,647$ 40,186$ 46.53$ 10,729,628$ 1,085,019$ 44.8%xxxxx xxxxx Prepaid Ground Lease -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Land Costs 11,814,647$ 40,186$ 46.53$ 10,729,628$ 1,085,019$ 44.8%-$ -$ Permits, Fees, and Studies Permits/Plan Review -$ -$ -$ -$ -$ 0.0%-$ -$ Utility/Public Works -$ -$ -$ -$ -$ 0.0%-$ -$ Market Study -$ -$ -$ -$ -$ 0.0%-$ -$ Env Impact/Hazards 12,000$ 41$ 0.05$ 10,898$ 1,102$ 0.0%12,000$ 12,000$ Survey/Zoning 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%7,500$ 7,500$ Acquisition appraisal 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%xxxxx xxxxx Physical Needs Assessment 15,000$ 51$ 0.06$ 13,622$ 1,378$ 0.1%15,000$ 15,000$ Architect 118,000$ 401$ 0.46$ 107,163$ 10,837$ 0.4%118,000$ 118,000$ Engineering 21,185$ 72$ 0.08$ 19,239$ 1,946$ 0.1%21,185$ 21,185$ Inspections -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Testing -$ -$ -$ -$ -$ 0.0%-$ -$ Total Permit, Fees, and Studies 181,185$ 616$ 0.71$ 164,545$ 16,639$ 0.7%173,685$ 173,685$ Direct Construction Costs by GC Solar Power Array -$ -$ -$ -$ -$ 0.0%-$ -$ Geothermal System -$ -$ -$ -$ -$ 0.0%-$ -$ Site Work -$ -$ -$ -$ -$ 0.0%-$ -$ Surface/Tuck Parking -$ -$ -$ -$ -$ 0.0%-$ -$ Residential - Exisiting 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 40.2%10,592,389$ 10,592,389$ Residential - New -$ -$ -$ -$ -$ 0.0%-$ -$ Landscaping -$ -$ -$ -$ -$ 0.0%-$ -$ Subtotal Building Costs 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 40.2%10,592,389$ 10,592,389$ General Requirements 635,543$ 2,162$ 2.50$ 577,177$ 58,366$ 2.4%635,543$ 635,543$ Overhead and Profit 847,391$ 2,882$ 3.34$ 769,570$ 77,822$ 3.2%847,391$ 847,391$ Pymt & Performance Bond 158,886$ 540$ 0.63$ 144,294$ 14,592$ 0.6%158,886$ 158,886$ Insurance by GC -$ -$ -$ -$ -$ 0.0%-$ -$ GMP Contract Total 12,234,210$ 41,613$ 48.19$ 11,110,660$ 1,123,550$ 46.4%12,234,210$ 12,234,210$ Construction Contingency 1,223,421$ 4,161$ 4.82$ 1,111,066$ 112,355$ 4.6%1,223,421$ 1,223,421$ Builder's Risk (for Ownr pd by GC)42,370$ 144$ 0.17$ 38,478$ 3,891$ 0.2%42,370$ 42,370$ Furnishings & Equipment -$ -$ -$ -$ -$ 0.0%-$ -$ Total Direct Construction Costs 13,500,000$ 45,918$ 53$ 12,260,204$ 1,239,796$ 51.2%13,500,000$ 13,500,000$ Indirect Construction Costs Developer's Fee -$ -$ -$ -$ -$ 0.0%-$ -$ Developer's Fee - Profit -$ -$ -$ -$ -$ 0.0%-$ -$ Development Consultant -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Management 137,000$ 466$ 0.54$ 124,418$ 12,582$ 0.5%137,000$ 137,000$ GL Insurance 122,342$ 416$ 0.48$ 111,107$ 11,235$ 0.5%122,342$ 122,342$ Real Estate Taxes -$ -$ -$ -$ -$ 0.0%-$ -$ Borrower's Legal -$ -$ -$ -$ -$ 0.0%-$ -$ Accounting -$ -$ -$ -$ -$ 0.0%-$ -$ Soft Cost Contingency 45,807$ 156$ 0.18$ 41,600$ 4,207$ 0.2%45,807$ 45,807$ Relocation -$ -$ -$ -$ -$ 0.0%-$ -$ Total Indirect Construction Costs 305,149$ 1,038$ 1.20$ 277,125$ 28,024$ 1.2%305,149$ 305,149$ Financing Costs Constr Loan Int. - Const -$ -$ -$ -$ -$ 0.0%-$ -$ Constr Loan Int. - Lease-up -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Construction Loan Fees -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Lender Costs -$ -$ -$ -$ -$ 0.0%-$ -$ Perm Loan Fees 446,610$ 1,519$ 1.76$ 405,595$ 41,015$ 1.7%xxxxx xxxxx Perm Lender Costs 29,000$ 99$ 0.11$ 26,337$ 2,663$ 0.1%xxxxx xxxxx Lender App/3rd Party Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Syndicator Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Tax Credit Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Title and Recording - Acq -$ -$ -$ -$ -$ 0.0%-$ -$ Title and Recording -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Financing Costs 475,610$ 1,618$ 1.87$ 431,932$ 43,678$ 1.8%-$ -$ Lease-up & Reserves Marketing expenses -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Lease-up Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Capitalized Operating Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Capitalized Replacement Reserves 100,000$ 340$ 0.39$ 90,816$ 9,184$ 0.4%xxxxx xxxxx Total Lease/Reserve Expenses 100,000$ 340$ 0.39$ 90,816$ 9,184$ 0.4%-$ -$ Total Development Costs 26,376,591$ 89,716$ 103.89$ 23,954,251$ 2,422,340$ 100.0%13,978,834$ 13,978,834$ Eagle Bend Proforma Current.xlsx Page 3 Sage Peak Solutions, LLC www.sagepeakllc.com Project Summary EBA - Opt 2 - Optimistic Refi 10 Stonebridge Dr. Unit Mix 0BR 1BR 2BR 2BR - L 3BR Total % est. s.f.545 545 763 880 975 Market - 7 12 2 6 27 9.2% 100%/Cat 3 - 14 8 2 6 30 10.2% 80%/Cat 2 - 27 43 5 11 86 29.3% 60%/Cat 2 - 15 18 3 6 42 14.3% 50%/Cat 1 - 16 17 3 6 42 14.3% 40%/Cat 1 - 33 20 5 9 67 22.8% Res Mgr - - - - - - - Total Units - 112 118 20 44 294 Cash Flow Market Rent 378,866$ Residential Units 211,574 83% Other Affordable Rent 1,473,324$ Community Space - 0% LIHTC Rent 1,889,520$ Lobby, mech, storage - 0% PHA Subsidy -$ Other Residential 42,315 17% Other Income/Tenant Utility Pymt 847,803$ Commercial - 0% Commercial Income -$ Surface Parking Minus Vacancy/Employee Units 8%(371,751)$ Total 253,889 Effective Gross Income 4,217,762$ Schedule Mo. # Operating Expenses 6,522$ (1,917,399)$ Construction Start Jul-17 1 Replacement Reserves -$ -$ Construction Length (mos)15 Net Operating Income 2,300,363$ Construction Completion Oct-18 16 Lease-up/Sales Period (mos) 1 Debt Service (1,357,630)$ Full Occupancy Nov-18 17 Capital Costs (725,000)$ Conversion to Perm (mos)1 Cash Flow 217,734$ Perm Financing Closing Dec-18 18 Audit (mos)2 Sources - Construction 8609 Feb-19 20 Construction Loan 25,451,549$ Tax Credit Equity 9%-$ Uses Tax Credit Equity 4%-$ Building/Defeasance Costs Tax Credit Equity - State -$ Permits, Fees, and Studies Tax Credit Equity - ETC -$ Direct Const. Costs - Housing NMTC -$ Indirect Construction Costs Cap Funds/ Reserves -$ Financing Costs Certificate Sales -$ Developer Fee FHLB-AHP -$ Reserves, Lease-up, & Sales Developer Financing -$ Total Project Costs Existing Reserves 1,000,000$ Total Uses State HOME -$ Deferred Reserve Costs 100,000$ Deferred Developer Fee -$ Tax Credit Equity Total Sources - Construction 26,551,549$ Type (4%/9%) Price Sources - Perm Rate Perm Lender 25,551,549$ QCT (y/n)y Tax Credit Equity 9% -$ Construction Loan Tax Credit Equity 4%-$ Term (months)24 Tax Credit Equity - State -$ Rate 3.45% Tax Credit Equity - ETC -$ LTV 80% NMTC -$ LTC 90% Cap Funds/ Reserves -$ Permanent Loan Certificate Sales -$ Term (years)35 FHLB-AHP -$ Amort (years)35 Developer Financing -$ Rate 4.00% Existing Reserves 1,000,000$ LTV 80% State HOME -$ DSCR 1.25 Deferred Developer Fee -$ Total Sources - Perm 26,551,549$ Deferred Developer Fee 0%during Construction Unused Funds 3,278,320$ 0%during Perm 5-Jan-2017 11,814,647$ 181,185$ 13,500,000$ Building S.F. Summary None 313,480$ 642,237$ -$ 14,736,902$ Underwriting 100,000$ 26,551,549$ Eagle Bend Proforma Current.xlsx Page 1 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 1 EBA - Opt 2 - Optimistic Refi Sources 10 Stonebridge Dr. Avon, CO 81620 Construction Construction Loan -$ 0% New Perm Proceeds 25,451,549$ 96% EB-5 Funds -$ Tax Credit Equity 4% -$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing -$ Unit Sales -$ Deferred Reserve Costs 100,000$ Deferred Developer Fee -$ Total Construction Funds 26,551,549$ Overage (Shortfall) -$ Permanent Sources Perm Lender 25,551,549$ Tax Credit Equity 4% -$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing -$ EB5 Repayment Reserve -$ Unit Sales -$ Lease-up Income -$ Deferred Developer Fee -$ Total Perm Funds 26,551,549$ ######## Overage (Shortfall) -$ 0% of Developer Fee deferred during Construction 0% of Developer Fee deferred during Perm Eagle Bend Proforma Current.xlsx Page 2 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 2 Project name:EBA - Opt 2 - Optimistic Refi 5-Jan-17 Development Costs Project Address:10 Stonebridge Dr. Avon, CO 81620 Total Costs $ per Unit $ per SF Affordable Market % of Total 4% Basis 9% Basis Land And Buildings Land Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Existing Structures -$ -$ -$ -$ -$ 0.0%-$ xxxxx Defeaseance of Bonds 11,814,647$ 40,186$ 46.53$ 10,729,628$ 1,085,019$ 44.5%xxxxx xxxxx Prepaid Ground Lease -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Land Costs 11,814,647$ 40,186$ 46.53$ 10,729,628$ 1,085,019$ 44.5%-$ -$ Permits, Fees, and Studies Permits/Plan Review -$ -$ -$ -$ -$ 0.0%-$ -$ Utility/Public Works -$ -$ -$ -$ -$ 0.0%-$ -$ Market Study -$ -$ -$ -$ -$ 0.0%-$ -$ Env Impact/Hazards 12,000$ 41$ 0.05$ 10,898$ 1,102$ 0.0%12,000$ 12,000$ Survey/Zoning 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%7,500$ 7,500$ Acquisition appraisal 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%xxxxx xxxxx Physical Needs Assessment 15,000$ 51$ 0.06$ 13,622$ 1,378$ 0.1%15,000$ 15,000$ Architect 118,000$ 401$ 0.46$ 107,163$ 10,837$ 0.4%118,000$ 118,000$ Engineering 21,185$ 72$ 0.08$ 19,239$ 1,946$ 0.1%21,185$ 21,185$ Inspections -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Testing -$ -$ -$ -$ -$ 0.0%-$ -$ Total Permit, Fees, and Studies 181,185$ 616$ 0.71$ 164,545$ 16,639$ 0.7%173,685$ 173,685$ Direct Construction Costs by GC Solar Power Array -$ -$ -$ -$ -$ 0.0%-$ -$ Geothermal System -$ -$ -$ -$ -$ 0.0%-$ -$ Site Work -$ -$ -$ -$ -$ 0.0%-$ -$ Surface/Tuck Parking -$ -$ -$ -$ -$ 0.0%-$ -$ Residential - Exisiting 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 39.9%10,592,389$ 10,592,389$ Residential - New -$ -$ -$ -$ -$ 0.0%-$ -$ Landscaping -$ -$ -$ -$ -$ 0.0%-$ -$ Subtotal Building Costs 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 39.9%10,592,389$ 10,592,389$ General Requirements 635,543$ 2,162$ 2.50$ 577,177$ 58,366$ 2.4%635,543$ 635,543$ Overhead and Profit 847,391$ 2,882$ 3.34$ 769,570$ 77,822$ 3.2%847,391$ 847,391$ Pymt & Performance Bond 158,886$ 540$ 0.63$ 144,294$ 14,592$ 0.6%158,886$ 158,886$ Insurance by GC -$ -$ -$ -$ -$ 0.0%-$ -$ GMP Contract Total 12,234,210$ 41,613$ 48.19$ 11,110,660$ 1,123,550$ 46.1%12,234,210$ 12,234,210$ Construction Contingency 1,223,421$ 4,161$ 4.82$ 1,111,066$ 112,355$ 4.6%1,223,421$ 1,223,421$ Builder's Risk (for Ownr pd by GC)42,370$ 144$ 0.17$ 38,478$ 3,891$ 0.2%42,370$ 42,370$ Furnishings & Equipment -$ -$ -$ -$ -$ 0.0%-$ -$ Total Direct Construction Costs 13,500,000$ 45,918$ 53$ 12,260,204$ 1,239,796$ 50.8%13,500,000$ 13,500,000$ Indirect Construction Costs Developer's Fee -$ -$ -$ -$ -$ 0.0%-$ -$ Developer's Fee - Profit -$ -$ -$ -$ -$ 0.0%-$ -$ Development Consultant -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Management 137,000$ 466$ 0.54$ 124,418$ 12,582$ 0.5%137,000$ 137,000$ GL Insurance 122,342$ 416$ 0.48$ 111,107$ 11,235$ 0.5%122,342$ 122,342$ Real Estate Taxes -$ -$ -$ -$ -$ 0.0%-$ -$ Borrower's Legal -$ -$ -$ -$ -$ 0.0%-$ -$ Accounting -$ -$ -$ -$ -$ 0.0%-$ -$ Soft Cost Contingency 54,138$ 184$ 0.21$ 49,166$ 4,972$ 0.2%54,138$ 54,138$ Relocation -$ -$ -$ -$ -$ 0.0%-$ -$ Total Indirect Construction Costs 313,480$ 1,066$ 1.23$ 284,691$ 28,789$ 1.2%313,480$ 313,480$ Financing Costs Constr Loan Int. - Const -$ -$ -$ -$ -$ 0.0%-$ -$ Constr Loan Int. - Lease-up -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Construction Loan Fees -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Lender Costs -$ -$ -$ -$ -$ 0.0%-$ -$ Perm Loan Fees 613,237$ 2,086$ 2.42$ 556,919$ 56,318$ 2.3%xxxxx xxxxx Perm Lender Costs 29,000$ 99$ 0.11$ 26,337$ 2,663$ 0.1%xxxxx xxxxx Lender App/3rd Party Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Syndicator Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Tax Credit Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Title and Recording - Acq -$ -$ -$ -$ -$ 0.0%-$ -$ Title and Recording -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Financing Costs 642,237$ 2,184$ 2.53$ 583,256$ 58,981$ 2.4%-$ -$ Lease-up & Reserves Marketing expenses -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Lease-up Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Capitalized Operating Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Capitalized Replacement Reserves 100,000$ 340$ 0.39$ 90,816$ 9,184$ 0.4%xxxxx xxxxx Total Lease/Reserve Expenses 100,000$ 340$ 0.39$ 90,816$ 9,184$ 0.4%-$ -$ Total Development Costs 26,551,549$ 90,311$ 104.58$ 24,113,142$ 2,438,408$ 100.0%13,987,165$ 13,987,165$ Eagle Bend Proforma Current.xlsx Page 3 Sage Peak Solutions, LLC www.sagepeakllc.com Project Summary EBA - Opt 3 - Conservative Refi 10 Stonebridge Dr. Unit Mix 0BR 1BR 2BR 2BR - L 3BR Total % est. s.f.545 545 763 880 975 Market - 7 12 2 6 27 9.2% 100%/Cat 3 - 14 8 2 6 30 10.2% 80%/Cat 2 - 27 43 5 11 86 29.3% 60%/Cat 2 - 15 18 3 6 42 14.3% 50%/Cat 1 - 16 17 3 6 42 14.3% 40%/Cat 1 - 33 20 5 9 67 22.8% Res Mgr - - - - - - - Total Units - 112 118 20 44 294 Cash Flow Market Rent 357,996$ Residential Units 211,574 83% Other Affordable Rent 1,473,324$ Community Space - 0% LIHTC Rent 1,889,520$ Lobby, mech, storage - 0% PHA Subsidy -$ Other Residential 42,315 17% Other Income/Tenant Utility Pymt 847,803$ Commercial - 0% Commercial Income -$ Surface Parking Minus Vacancy/Employee Units 8%(370,060)$ Total 253,889 Effective Gross Income 4,198,583$ Schedule Mo. # Operating Expenses 6,522$ (1,917,392)$ Construction Start Jul-17 1 Replacement Reserves 350$ (102,900)$ Construction Length (mos)15 Net Operating Income 2,178,291$ Construction Completion Oct-18 16 Lease-up/Sales Period (mos) 1 Debt Service (1,418,562)$ Full Occupancy Nov-18 17 Capital Costs (622,100)$ Conversion to Perm (mos)1 Cash Flow 137,629$ Perm Financing Closing Dec-18 18 Audit (mos)2 Sources - Construction 8609 Feb-19 20 Construction Loan 25,480,477$ Tax Credit Equity 9%-$ Uses Tax Credit Equity 4%-$ Building/Defeasance Costs Tax Credit Equity - State -$ Permits, Fees, and Studies Tax Credit Equity - ETC -$ Direct Const. Costs - Housing NMTC -$ Indirect Construction Costs Cap Funds/ Reserves -$ Financing Costs Certificate Sales -$ Developer Fee FHLB-AHP -$ Reserves, Lease-up, & Sales Developer Financing -$ Total Project Costs Existing Reserves 1,000,000$ Total Uses State HOME -$ Deferred Reserve Costs 1,134,822$ Deferred Developer Fee -$ Tax Credit Equity Total Sources - Construction 27,615,299$ Type (4%/9%) Price Sources - Perm Rate Perm Lender 25,816,778$ QCT (y/n)y Tax Credit Equity 9% -$ Construction Loan Tax Credit Equity 4%-$ Term (months)24 Tax Credit Equity - State -$ Rate 3.45% Tax Credit Equity - ETC -$ LTV 80% NMTC -$ LTC 90% Cap Funds/ Reserves -$ Permanent Loan Certificate Sales -$ Term (years)35 FHLB-AHP -$ Amort (years)35 Developer Financing -$ Rate 4.25% Existing Reserves 1,000,000$ LTV 80% State HOME -$ DSCR 1.25 Deferred Developer Fee -$ Total Sources - Perm 26,816,778$ Deferred Developer Fee 0%during Construction Unused Funds (798,521)$ 0%during Perm 5-Jan-2017 11,814,647$ 202,370$ 13,500,000$ Building S.F. Summary None 314,858$ 648,603$ -$ 15,800,652$ Underwriting 1,134,822$ 27,615,299$ Eagle Bend Proforma Current.xlsx Page 1 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 1 EBA - Opt 3 - Conservative Refi Sources 10 Stonebridge Dr. Avon, CO 81620 Construction Construction Loan -$ 0% New Perm Proceeds 25,480,477$ 92% EB-5 Funds -$ Tax Credit Equity 4% -$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing -$ Unit Sales -$ Deferred Reserve Costs 1,134,822$ Deferred Developer Fee -$ Total Construction Funds 27,615,299$ Overage (Shortfall) -$ Permanent Sources Perm Lender 25,816,778$ Tax Credit Equity 4% -$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing -$ EB5 Repayment Reserve -$ Unit Sales -$ Lease-up Income -$ Deferred Developer Fee -$ Total Perm Funds 26,816,778$ ######## Overage (Shortfall) (798,521)$ 0% of Developer Fee deferred during Construction 0% of Developer Fee deferred during Perm Eagle Bend Proforma Current.xlsx Page 2 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 2 Project name:EBA - Opt 3 - Conservative Refi 5-Jan-17 Development Costs Project Address:10 Stonebridge Dr. Avon, CO 81620 Total Costs $ per Unit $ per SF Affordable Market % of Total 4% Basis 9% Basis Land And Buildings Land Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Existing Structures -$ -$ -$ -$ -$ 0.0%-$ xxxxx Defeaseance of Bonds 11,814,647$ 40,186$ 46.53$ 10,729,628$ 1,085,019$ 42.8%xxxxx xxxxx Prepaid Ground Lease -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Land Costs 11,814,647$ 40,186$ 46.53$ 10,729,628$ 1,085,019$ 42.8%-$ -$ Permits, Fees, and Studies Permits/Plan Review -$ -$ -$ -$ -$ 0.0%-$ -$ Utility/Public Works -$ -$ -$ -$ -$ 0.0%-$ -$ Market Study -$ -$ -$ -$ -$ 0.0%-$ -$ Env Impact/Hazards 12,000$ 41$ 0.05$ 10,898$ 1,102$ 0.0%12,000$ 12,000$ Survey/Zoning 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%7,500$ 7,500$ Acquisition appraisal 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%xxxxx xxxxx Physical Needs Assessment 15,000$ 51$ 0.06$ 13,622$ 1,378$ 0.1%15,000$ 15,000$ Architect 118,000$ 401$ 0.46$ 107,163$ 10,837$ 0.4%118,000$ 118,000$ Engineering 21,185$ 72$ 0.08$ 19,239$ 1,946$ 0.1%21,185$ 21,185$ Inspections -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Testing 21,185$ 72$ 0.08$ 19,239$ 1,946$ 0.1%21,185$ 21,185$ Total Permit, Fees, and Studies 202,370$ 688$ 0.80$ 183,785$ 18,585$ 0.7%194,870$ 194,870$ Direct Construction Costs by GC Solar Power Array -$ -$ -$ -$ -$ 0.0%-$ -$ Geothermal System -$ -$ -$ -$ -$ 0.0%-$ -$ Site Work -$ -$ -$ -$ -$ 0.0%-$ -$ Surface/Tuck Parking -$ -$ -$ -$ -$ 0.0%-$ -$ Residential - Exisiting 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 38.4%10,592,389$ 10,592,389$ Residential - New -$ -$ -$ -$ -$ 0.0%-$ -$ Landscaping -$ -$ -$ -$ -$ 0.0%-$ -$ Subtotal Building Costs 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 38.4%10,592,389$ 10,592,389$ General Requirements 635,543$ 2,162$ 2.50$ 577,177$ 58,366$ 2.3%635,543$ 635,543$ Overhead and Profit 847,391$ 2,882$ 3.34$ 769,570$ 77,822$ 3.1%847,391$ 847,391$ Pymt & Performance Bond 158,886$ 540$ 0.63$ 144,294$ 14,592$ 0.6%158,886$ 158,886$ Insurance by GC -$ -$ -$ -$ -$ 0.0%-$ -$ GMP Contract Total 12,234,210$ 41,613$ 48.19$ 11,110,660$ 1,123,550$ 44.3%12,234,210$ 12,234,210$ Construction Contingency 1,223,421$ 4,161$ 4.82$ 1,111,066$ 112,355$ 4.4%1,223,421$ 1,223,421$ Builder's Risk (for Ownr pd by GC)42,370$ 144$ 0.17$ 38,478$ 3,891$ 0.2%42,370$ 42,370$ Furnishings & Equipment -$ -$ -$ -$ -$ 0.0%-$ -$ Total Direct Construction Costs 13,500,000$ 45,918$ 53$ 12,260,204$ 1,239,796$ 48.9%13,500,000$ 13,500,000$ Indirect Construction Costs Developer's Fee -$ -$ -$ -$ -$ 0.0%-$ -$ Developer's Fee - Profit -$ -$ -$ -$ -$ 0.0%-$ -$ Development Consultant -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Management 137,000$ 466$ 0.54$ 124,418$ 12,582$ 0.5%137,000$ 137,000$ GL Insurance 122,342$ 416$ 0.48$ 111,107$ 11,235$ 0.4%122,342$ 122,342$ Real Estate Taxes -$ -$ -$ -$ -$ 0.0%-$ -$ Borrower's Legal -$ -$ -$ -$ -$ 0.0%-$ -$ Accounting -$ -$ -$ -$ -$ 0.0%-$ -$ Soft Cost Contingency 55,516$ 189$ 0.22$ 50,417$ 5,098$ 0.2%55,516$ 55,516$ Relocation -$ -$ -$ -$ -$ 0.0%-$ -$ Total Indirect Construction Costs 314,858$ 1,071$ 1.24$ 285,942$ 28,916$ 1.1%314,858$ 314,858$ Financing Costs Constr Loan Int. - Const -$ -$ -$ -$ -$ 0.0%-$ -$ Constr Loan Int. - Lease-up -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Construction Loan Fees -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Lender Costs -$ -$ -$ -$ -$ 0.0%-$ -$ Perm Loan Fees 619,603$ 2,107$ 2.44$ 562,700$ 56,902$ 2.2%xxxxx xxxxx Perm Lender Costs 29,000$ 99$ 0.11$ 26,337$ 2,663$ 0.1%xxxxx xxxxx Lender App/3rd Party Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Syndicator Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Tax Credit Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Title and Recording - Acq -$ -$ -$ -$ -$ 0.0%-$ -$ Title and Recording -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Financing Costs 648,603$ 2,206$ 2.55$ 589,037$ 59,566$ 2.3%-$ -$ Lease-up & Reserves Marketing expenses -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Lease-up Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Capitalized Operating Reserves 1,134,822$ 3,860$ 4.47$ 1,030,603$ 104,218$ 4.1%xxxxx xxxxx Capitalized Replacement Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Lease/Reserve Expenses 1,134,822$ 3,860$ 4.47$ 1,030,603$ 104,218$ 4.1%-$ -$ Total Development Costs 27,615,299$ 93,930$ 108.77$ 25,079,200$ 2,536,099$ 100.0%14,009,728$ 14,009,728$ Eagle Bend Proforma Current.xlsx Page 3 Sage Peak Solutions, LLC www.sagepeakllc.com Project Summary EBA - Opt 4 - Optimistic LIHTC 10 Stonebridge Dr. Unit Mix 0BR 1BR 2BR 2BR - L 3BR Total % est. s.f.545 545 763 880 975 Market - 7 12 2 6 27 9.2% 100%/Cat 3 - 14 8 2 6 30 10.2% 80%/Cat 2 - 27 43 5 11 86 29.3% 60%/Cat 2 - 15 18 3 6 42 14.3% 50%/Cat 1 - 16 17 3 6 42 14.3% 40%/Cat 1 - 33 20 5 9 67 22.8% Res Mgr - - - - - - - Total Units - 112 118 20 44 294 Cash Flow Market Rent 417,992$ Residential Units 211,574 83% Other Affordable Rent 1,473,324$ Community Space - 0% LIHTC Rent 1,439,640$ Lobby, mech, storage - 0% PHA Subsidy -$ Other Residential 42,315 17% Other Income/Tenant Utility Pymt 601,038$ Commercial - 0% Commercial Income -$ Surface Parking Minus Vacancy/Employee Units 7%(255,580)$ Total 253,889 Effective Gross Income 3,676,415$ Schedule Mo. # Operating Expenses 5,959$ (1,751,906)$ Construction Start Nov-17 1 Replacement Reserves 350$ (102,900)$ Construction Length (mos)15 Net Operating Income 1,821,608$ Construction Completion Feb-19 16 Lease-up/Sales Period (mos) 1 Debt Service (1,584,007)$ Full Occupancy Mar-19 17 Capital Costs (117,600)$ Conversion to Perm (mos)1 Cash Flow 120,001$ Perm Financing Closing Apr-19 18 Audit (mos)2 Sources - Construction 8609 Jun-19 20 Construction Loan 29,020,660$ Tax Credit Equity 9%-$ Uses Tax Credit Equity 4%1,368,846$ Building/Defeasance Costs Tax Credit Equity - State -$ Permits, Fees, and Studies Tax Credit Equity - ETC -$ Direct Const. Costs - Housing NMTC -$ Indirect Construction Costs Cap Funds/ Reserves -$ Financing Costs Certificate Sales -$ Developer Fee FHLB-AHP -$ Reserves, Lease-up, & Sales Developer Financing 21,381,205$ Total Project Costs Existing Reserves 1,000,000$ Total Uses State HOME -$ Deferred Reserve Costs 1,428,809$ Deferred Developer Fee 831,470$ Tax Credit Equity Total Sources - Construction 55,030,990$ Type (4%/9%) Price 0.980$ Sources - Perm Rate 3.23% Perm Lender 29,020,660$ QCT (y/n)y Tax Credit Equity 9% -$ Construction Loan Tax Credit Equity 4%9,125,639$ Term (months)24 Tax Credit Equity - State -$ Rate 3.45% Tax Credit Equity - ETC -$ LTV 85% NMTC -$ LTC 90% Cap Funds/ Reserves -$ Permanent Loan Certificate Sales -$ Term (years)35 FHLB-AHP -$ Amort (years)35 Developer Financing 15,529,019$ Rate 4.20% Existing Reserves 1,000,000$ LTV 87% State HOME -$ DSCR 1.15 Deferred Developer Fee 355,671$ Total Sources - Perm 55,030,990$ Deferred Developer Fee 47%during Construction Unused Funds 10,353,520$ 20%during Perm 5-Jan-2017 36,424,500$ 549,842$ 13,500,000$ Building S.F. Summary 4% LIHTC 562,405$ 787,077$ 1,778,357$ 18,606,490$ Underwriting 1,428,809$ 55,030,990$ Eagle Bend Proforma Current.xlsx Page 1 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 1 EBA - Opt 4 - Optimistic LIHTC Sources 10 Stonebridge Dr. Avon, CO 81620 Construction Construction Loan -$ 0% New Perm Proceeds 29,020,660$ 53% EB-5 Funds -$ Tax Credit Equity 4% 1,368,846$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing 21,381,205$ Unit Sales -$ Deferred Reserve Costs 1,428,809$ Deferred Developer Fee 831,470$ Total Construction Funds 55,030,990$ Overage (Shortfall) -$ Permanent Sources Perm Lender 29,020,660$ Tax Credit Equity 4% 9,125,639$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing 15,529,019$ EB5 Repayment Reserve -$ Unit Sales -$ Lease-up Income -$ Deferred Developer Fee 355,671$ Total Perm Funds 55,030,990$ ######## Overage (Shortfall) -$ 47% of Developer Fee deferred during Construction 20% of Developer Fee deferred during Perm Eagle Bend Proforma Current.xlsx Page 2 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 2 Project name:EBA - Opt 4 - Optimistic LIHTC 5-Jan-17 Development Costs Project Address:10 Stonebridge Dr. Avon, CO 81620 Total Costs $ per Unit $ per SF Affordable Market % of Total 4% Basis 9% Basis Land And Buildings Land Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Existing Structures 35,674,500$ 121,342$ 140.51$ 32,398,270$ 3,276,230$ 64.8%35,674,500$ xxxxx Defeaseance of Bonds -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Prepaid Ground Lease 750,000$ 2,551$ 2.95$ 681,122$ 68,878$ 1.4%xxxxx xxxxx Total Land Costs 36,424,500$ 123,893$ 143.47$ 33,079,393$ 3,345,107$ 66.2%35,674,500$ -$ Permits, Fees, and Studies Permits/Plan Review -$ -$ -$ -$ -$ 0.0%-$ -$ Utility/Public Works -$ -$ -$ -$ -$ 0.0%-$ -$ Market Study 10,000$ 34$ 0.04$ 9,082$ 918$ 0.0%10,000$ 10,000$ Env Impact/Hazards 12,000$ 41$ 0.05$ 10,898$ 1,102$ 0.0%12,000$ 12,000$ Survey/Zoning 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%7,500$ 7,500$ Acquisition appraisal 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%xxxxx xxxxx Physical Needs Assessment 15,000$ 51$ 0.06$ 13,622$ 1,378$ 0.0%15,000$ 15,000$ Architect 423,696$ 1,441$ 1.67$ 384,785$ 38,911$ 0.8%423,696$ 423,696$ Engineering 52,962$ 180$ 0.21$ 48,098$ 4,864$ 0.1%52,962$ 52,962$ Inspections -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Testing 21,185$ 72$ 0.08$ 19,239$ 1,946$ 0.0%21,185$ 21,185$ Total Permit, Fees, and Studies 549,842$ 1,870$ 2.17$ 499,347$ 50,496$ 1.0%542,342$ 542,342$ Direct Construction Costs by GC Solar Power Array -$ -$ -$ -$ -$ 0.0%-$ -$ Geothermal System -$ -$ -$ -$ -$ 0.0%-$ -$ Site Work -$ -$ -$ -$ -$ 0.0%-$ -$ Surface/Tuck Parking -$ -$ -$ -$ -$ 0.0%-$ -$ Residential - Exisiting 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 19.2%10,592,389$ 10,592,389$ Residential - New -$ -$ -$ -$ -$ 0.0%-$ -$ Landscaping -$ -$ -$ -$ -$ 0.0%-$ -$ Subtotal Building Costs 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 19.2%10,592,389$ 10,592,389$ General Requirements 635,543$ 2,162$ 2.50$ 577,177$ 58,366$ 1.2%635,543$ 635,543$ Overhead and Profit 847,391$ 2,882$ 3.34$ 769,570$ 77,822$ 1.5%847,391$ 847,391$ Pymt & Performance Bond 158,886$ 540$ 0.63$ 144,294$ 14,592$ 0.3%158,886$ 158,886$ Insurance by GC -$ -$ -$ -$ -$ 0.0%-$ -$ GMP Contract Total 12,234,210$ 41,613$ 48.19$ 11,110,660$ 1,123,550$ 22.2%12,234,210$ 12,234,210$ Construction Contingency 1,223,421$ 4,161$ 4.82$ 1,111,066$ 112,355$ 2.2%1,223,421$ 1,223,421$ Builder's Risk (for Ownr pd by GC)42,370$ 144$ 0.17$ 38,478$ 3,891$ 0.1%42,370$ 42,370$ Furnishings & Equipment -$ -$ -$ -$ -$ 0.0%-$ -$ Total Direct Construction Costs 13,500,000$ 45,918$ 53$ 12,260,204$ 1,239,796$ 24.5%13,500,000$ 13,500,000$ Indirect Construction Costs Developer's Fee 150,000$ 510$ 0.59$ 136,224$ 13,776$ 0.3%150,000$ 150,000$ Developer's Fee - Profit 1,628,357$ 5,539$ 6.41$ 1,478,814$ 149,543$ 3.0%1,628,357$ 1,628,357$ Development Consultant 50,000$ 170$ 0.20$ 45,408$ 4,592$ 0.1%50,000$ 50,000$ Construction Management 137,000$ 466$ 0.54$ 124,418$ 12,582$ 0.2%137,000$ 137,000$ GL Insurance 122,342$ 416$ 0.48$ 111,107$ 11,235$ 0.2%122,342$ 122,342$ Real Estate Taxes -$ -$ -$ -$ -$ 0.0%-$ -$ Borrower's Legal 125,000$ 425$ 0.49$ 113,520$ 11,480$ 0.2%125,000$ 125,000$ Accounting 40,000$ 136$ 0.16$ 36,327$ 3,673$ 0.1%40,000$ 40,000$ Soft Cost Contingency 88,063$ 300$ 0.35$ 79,976$ 8,087$ 0.2%88,063$ 88,063$ Relocation -$ -$ -$ -$ -$ 0.0%-$ -$ Total Indirect Construction Costs 2,340,762$ 7,962$ 9.22$ 2,125,794$ 214,968$ 4.3%2,340,762$ 2,340,762$ Financing Costs Constr Loan Int. - Const -$ -$ -$ -$ -$ 0.0%-$ -$ Constr Loan Int. - Lease-up -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Construction Loan Fees -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Lender Costs -$ -$ -$ -$ -$ 0.0%-$ -$ Perm Loan Fees 551,393$ 1,875$ 2.17$ 500,754$ 50,638$ 1.0%xxxxx xxxxx Perm Lender Costs 62,100$ 211$ 0.24$ 56,397$ 5,703$ 0.1%xxxxx xxxxx Lender App/3rd Party Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Syndicator Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Tax Credit Fees 148,584$ 505$ 0.59$ 134,939$ 13,645$ 0.3%xxxxx xxxxx Title and Recording - Acq 25,000$ 85$ 0.10$ 22,704$ 2,296$ 0.0%25,000$ 25,000$ Title and Recording -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Financing Costs 787,077$ 2,677$ 3.10$ 714,794$ 72,283$ 1.4%25,000$ 25,000$ Lease-up & Reserves Marketing expenses -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Lease-up Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Capitalized Operating Reserves 1,134,809$ 3,860$ 4.47$ 1,030,591$ 104,217$ 2.1%xxxxx xxxxx Capitalized Replacement Reserves 294,000$ 1,000$ 1.16$ 267,000$ 27,000$ 0.5%xxxxx xxxxx Total Lease/Reserve Expenses 1,428,809$ 4,860$ 5.63$ 1,297,591$ 131,217$ 2.6%-$ -$ Total Development Costs 55,030,990$ 187,180$ 216.75$ 49,977,124$ 5,053,866$ 100.0%52,082,605$ 16,408,105$ Eagle Bend Proforma Current.xlsx Page 3 Sage Peak Solutions, LLC www.sagepeakllc.com Project Summary EBA - Opt 5 - Conservative LIHTC 10 Stonebridge Dr. Unit Mix 0BR 1BR 2BR 2BR - L 3BR Total % est. s.f.545 545 763 880 975 Market - 7 12 2 6 27 9.2% 100%/Cat 3 - 14 8 2 6 30 10.2% 80%/Cat 2 - 27 43 5 11 86 29.3% 60%/Cat 2 - 15 18 3 6 42 14.3% 50%/Cat 1 - 16 17 3 6 42 14.3% 40%/Cat 1 - 33 20 5 9 67 22.8% Res Mgr - - - - - - - Total Units - 112 118 20 44 294 Cash Flow Market Rent 398,088$ Residential Units 211,574 83% Other Affordable Rent 1,473,324$ Community Space - 0% LIHTC Rent 1,439,640$ Lobby, mech, storage - 0% PHA Subsidy -$ Other Residential 42,315 17% Other Income/Tenant Utility Pymt 601,038$ Commercial - 0% Commercial Income -$ Surface Parking Minus Vacancy/Employee Units 8%(316,879)$ Total 253,889 Effective Gross Income 3,595,211$ Schedule Mo. # Operating Expenses 6,148$ (1,807,368)$ Construction Start Nov-17 1 Replacement Reserves 350$ (102,900)$ Construction Length (mos)15 Net Operating Income 1,684,942$ Construction Completion Feb-19 16 Lease-up/Sales Period (mos) 1 Debt Service (1,465,167)$ Full Occupancy Mar-19 17 Capital Costs (117,600)$ Conversion to Perm (mos)1 Cash Flow 102,175$ Perm Financing Closing Apr-19 18 Audit (mos)2 Sources - Construction 8609 Jun-19 20 Construction Loan 24,944,523$ Tax Credit Equity 9%-$ Uses Tax Credit Equity 4%952,534$ Building/Defeasance Costs Tax Credit Equity - State -$ Permits, Fees, and Studies Tax Credit Equity - ETC -$ Direct Const. Costs - Housing NMTC -$ Indirect Construction Costs Cap Funds/ Reserves -$ Financing Costs Certificate Sales -$ Developer Fee FHLB-AHP -$ Reserves, Lease-up, & Sales Developer Financing 14,834,367$ Total Project Costs Existing Reserves 1,000,000$ Total Uses State HOME -$ Deferred Reserve Costs 1,407,894$ Deferred Developer Fee 653,134$ Tax Credit Equity Total Sources - Construction 43,792,452$ Type (4%/9%) Price 0.850$ Sources - Perm Rate 3.23% Perm Lender 25,137,476$ QCT (y/n)y Tax Credit Equity 9% -$ Construction Loan Tax Credit Equity 4%6,350,226$ Term (months)24 Tax Credit Equity - State -$ Rate 3.45% Tax Credit Equity - ETC -$ LTV 85% NMTC -$ LTC 90% Cap Funds/ Reserves -$ Permanent Loan Certificate Sales -$ Term (years)35 FHLB-AHP -$ Amort (years)35 Developer Financing 11,043,495$ Rate 4.70% Existing Reserves 1,000,000$ LTV 87% State HOME -$ DSCR 1.15 Deferred Developer Fee 261,254$ Total Sources - Perm 43,792,452$ Deferred Developer Fee 50%during Construction Unused Funds 3,790,872$ 20%during Perm 5-Jan-2017 25,754,000$ 549,842$ 13,500,000$ Building S.F. Summary 4% LIHTC 573,118$ 701,330$ 1,306,268$ 18,038,452$ Underwriting 1,407,894$ 43,792,452$ Eagle Bend Proforma Current.xlsx Page 1 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 1 EBA - Opt 5 - Conservative LIHTC Sources 10 Stonebridge Dr. Avon, CO 81620 Construction Construction Loan -$ 0% New Perm Proceeds 24,944,523$ 57% EB-5 Funds -$ Tax Credit Equity 4% 952,534$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing 14,834,367$ Unit Sales -$ Deferred Reserve Costs 1,407,894$ Deferred Developer Fee 653,134$ Total Construction Funds 43,792,452$ Overage (Shortfall) -$ Permanent Sources Perm Lender 25,137,476$ Tax Credit Equity 4% 6,350,226$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing 11,043,495$ EB5 Repayment Reserve -$ Unit Sales -$ Lease-up Income -$ Deferred Developer Fee 261,254$ Total Perm Funds 43,792,452$ ######## Overage (Shortfall) -$ 50% of Developer Fee deferred during Construction 20% of Developer Fee deferred during Perm Eagle Bend Proforma Current.xlsx Page 2 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 2 Project name:EBA - Opt 5 - Conservative LIHTC 5-Jan-17 Development Costs Project Address:10 Stonebridge Dr. Avon, CO 81620 Total Costs $ per Unit $ per SF Affordable Market % of Total 4% Basis 9% Basis Land And Buildings Land Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Existing Structures 25,004,000$ 85,048$ 98.48$ 22,707,714$ 2,296,286$ 57.1%25,004,000$ xxxxx Defeaseance of Bonds -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Prepaid Ground Lease 750,000$ 2,551$ 2.95$ 681,122$ 68,878$ 1.7%xxxxx xxxxx Total Land Costs 25,754,000$ 87,599$ 101.44$ 23,388,837$ 2,365,163$ 58.8%25,004,000$ -$ Permits, Fees, and Studies Permits/Plan Review -$ -$ -$ -$ -$ 0.0%-$ -$ Utility/Public Works -$ -$ -$ -$ -$ 0.0%-$ -$ Market Study 10,000$ 34$ 0.04$ 9,082$ 918$ 0.0%10,000$ 10,000$ Env Impact/Hazards 12,000$ 41$ 0.05$ 10,898$ 1,102$ 0.0%12,000$ 12,000$ Survey/Zoning 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%7,500$ 7,500$ Acquisition appraisal 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%xxxxx xxxxx Physical Needs Assessment 15,000$ 51$ 0.06$ 13,622$ 1,378$ 0.0%15,000$ 15,000$ Architect 423,696$ 1,441$ 1.67$ 384,785$ 38,911$ 1.0%423,696$ 423,696$ Engineering 52,962$ 180$ 0.21$ 48,098$ 4,864$ 0.1%52,962$ 52,962$ Inspections -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Testing 21,185$ 72$ 0.08$ 19,239$ 1,946$ 0.0%21,185$ 21,185$ Total Permit, Fees, and Studies 549,842$ 1,870$ 2.17$ 499,347$ 50,496$ 1.3%542,342$ 542,342$ Direct Construction Costs by GC Solar Power Array -$ -$ -$ -$ -$ 0.0%-$ -$ Geothermal System -$ -$ -$ -$ -$ 0.0%-$ -$ Site Work -$ -$ -$ -$ -$ 0.0%-$ -$ Surface/Tuck Parking -$ -$ -$ -$ -$ 0.0%-$ -$ Residential - Exisiting 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 24.2%10,592,389$ 10,592,389$ Residential - New -$ -$ -$ -$ -$ 0.0%-$ -$ Landscaping -$ -$ -$ -$ -$ 0.0%-$ -$ Subtotal Building Costs 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 24.2%10,592,389$ 10,592,389$ General Requirements 635,543$ 2,162$ 2.50$ 577,177$ 58,366$ 1.5%635,543$ 635,543$ Overhead and Profit 847,391$ 2,882$ 3.34$ 769,570$ 77,822$ 1.9%847,391$ 847,391$ Pymt & Performance Bond 158,886$ 540$ 0.63$ 144,294$ 14,592$ 0.4%158,886$ 158,886$ Insurance by GC -$ -$ -$ -$ -$ 0.0%-$ -$ GMP Contract Total 12,234,210$ 41,613$ 48.19$ 11,110,660$ 1,123,550$ 27.9%12,234,210$ 12,234,210$ Construction Contingency 1,223,421$ 4,161$ 4.82$ 1,111,066$ 112,355$ 2.8%1,223,421$ 1,223,421$ Builder's Risk (for Ownr pd by GC)42,370$ 144$ 0.17$ 38,478$ 3,891$ 0.1%42,370$ 42,370$ Furnishings & Equipment -$ -$ -$ -$ -$ 0.0%-$ -$ Total Direct Construction Costs 13,500,000$ 45,918$ 53$ 12,260,204$ 1,239,796$ 30.8%13,500,000$ 13,500,000$ Indirect Construction Costs Developer's Fee 150,000$ 510$ 0.59$ 136,224$ 13,776$ 0.3%150,000$ 150,000$ Developer's Fee - Profit 1,156,268$ 3,933$ 4.55$ 1,050,080$ 106,188$ 2.6%1,156,268$ 1,156,268$ Development Consultant 65,000$ 221$ 0.26$ 59,031$ 5,969$ 0.1%65,000$ 65,000$ Construction Management 137,000$ 466$ 0.54$ 124,418$ 12,582$ 0.3%137,000$ 137,000$ GL Insurance 122,342$ 416$ 0.48$ 111,107$ 11,235$ 0.3%122,342$ 122,342$ Real Estate Taxes -$ -$ -$ -$ -$ 0.0%-$ -$ Borrower's Legal 125,000$ 425$ 0.49$ 113,520$ 11,480$ 0.3%125,000$ 125,000$ Accounting 40,000$ 136$ 0.16$ 36,327$ 3,673$ 0.1%40,000$ 40,000$ Soft Cost Contingency 83,776$ 285$ 0.33$ 76,082$ 7,694$ 0.2%83,776$ 83,776$ Relocation -$ -$ -$ -$ -$ 0.0%-$ -$ Total Indirect Construction Costs 1,879,386$ 6,392$ 7.40$ 1,706,789$ 172,597$ 4.3%1,879,386$ 1,879,386$ Financing Costs Constr Loan Int. - Const -$ -$ -$ -$ -$ 0.0%-$ -$ Constr Loan Int. - Lease-up -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Construction Loan Fees -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Lender Costs -$ -$ -$ -$ -$ 0.0%-$ -$ Perm Loan Fees 477,612$ 1,625$ 1.88$ 433,750$ 43,862$ 1.1%xxxxx xxxxx Perm Lender Costs 62,100$ 211$ 0.24$ 56,397$ 5,703$ 0.1%xxxxx xxxxx Lender App/3rd Party Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Syndicator Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Tax Credit Fees 136,618$ 465$ 0.54$ 124,071$ 12,547$ 0.3%xxxxx xxxxx Title and Recording - Acq 25,000$ 85$ 0.10$ 22,704$ 2,296$ 0.1%25,000$ 25,000$ Title and Recording -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Financing Costs 701,330$ 2,385$ 2.76$ 636,922$ 64,408$ 1.6%25,000$ 25,000$ Lease-up & Reserves Marketing expenses -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Lease-up Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Capitalized Operating Reserves 1,113,894$ 3,789$ 4.39$ 1,011,597$ 102,296$ 2.5%xxxxx xxxxx Capitalized Replacement Reserves 294,000$ 1,000$ 1.16$ 267,000$ 27,000$ 0.7%xxxxx xxxxx Total Lease/Reserve Expenses 1,407,894$ 4,789$ 5.55$ 1,278,597$ 129,296$ 3.2%-$ -$ Total Development Costs 43,792,452$ 148,954$ 172.49$ 39,770,696$ 4,021,756$ 100.0%40,950,728$ 15,946,728$ Eagle Bend Proforma Current.xlsx Page 3 Sage Peak Solutions, LLC www.sagepeakllc.com Project Summary EBA - Opt 6 - LIHTC - No Cash Out 10 Stonebridge Dr. Unit Mix 0BR 1BR 2BR 2BR - L 3BR Total % est. s.f.545 545 763 880 975 Market - 7 12 2 6 27 9.2% 100%/Cat 3 - 14 8 2 6 30 10.2% 80%/Cat 2 - 27 43 5 11 86 29.3% 60%/Cat 2 - 15 18 3 6 42 14.3% 50%/Cat 1 - 16 17 3 6 42 14.3% 40%/Cat 1 - 33 20 5 9 67 22.8% Res Mgr - - - - - - - Total Units - 112 118 20 44 294 Cash Flow Market Rent 398,088$ Residential Units 211,574 83% Other Affordable Rent 1,473,324$ Community Space - 0% LIHTC Rent 1,439,640$ Lobby, mech, storage - 0% PHA Subsidy -$ Other Residential 42,315 17% Other Income/Tenant Utility Pymt 601,038$ Commercial - 0% Commercial Income -$ Surface Parking Minus Vacancy/Employee Units 7%(285,583)$ Total 253,889 Effective Gross Income 3,626,507$ Schedule Mo. # Operating Expenses 5,956$ (1,751,150)$ Construction Start Nov-17 1 Replacement Reserves 350$ (102,900)$ Construction Length (mos)15 Net Operating Income 1,772,457$ Construction Completion Feb-19 16 Lease-up/Sales Period (mos) 1 Debt Service (1,115,507)$ Full Occupancy Mar-19 17 Capital Costs (117,600)$ Conversion to Perm (mos)1 Cash Flow 539,350$ Perm Financing Closing Apr-19 18 Audit (mos)2 Sources - Construction 8609 Jun-19 20 Construction Loan 24,505,657$ Tax Credit Equity 9%-$ Uses Tax Credit Equity 4%1,153,599$ Building/Defeasance Costs Tax Credit Equity - State -$ Permits, Fees, and Studies Tax Credit Equity - ETC -$ Direct Const. Costs - Housing NMTC -$ Indirect Construction Costs Cap Funds/ Reserves -$ Financing Costs Certificate Sales -$ Developer Fee FHLB-AHP -$ Reserves, Lease-up, & Sales Developer Financing 20,331,214$ Total Project Costs Existing Reserves 1,000,000$ Total Uses State HOME -$ Deferred Reserve Costs 1,273,954$ Deferred Developer Fee 881,679$ Tax Credit Equity Total Sources - Construction 49,146,102$ Type (4%/9%) Price 0.915$ Sources - Perm Rate 3.23% Perm Lender 19,771,560$ QCT (y/n)y Tax Credit Equity 9% -$ Construction Loan Tax Credit Equity 4%7,690,657$ Term (months)24 Tax Credit Equity - State -$ Rate 3.45% Tax Credit Equity - ETC -$ LTV 85% NMTC -$ LTC 90% Cap Funds/ Reserves -$ Permanent Loan Certificate Sales -$ Term (years)35 FHLB-AHP -$ Amort (years)35 Developer Financing 20,331,214$ Rate 4.45% Existing Reserves 1,000,000$ LTV 87% State HOME -$ DSCR 1.15 Deferred Developer Fee 352,671$ Total Sources - Perm 49,146,102$ Deferred Developer Fee 50%during Construction Unused Funds 7,546,285$ 20%during Perm 5-Jan-2017 30,885,175$ 549,842$ 13,500,000$ Building S.F. Summary 4% LIHTC 568,324$ 605,450$ 1,763,357$ 18,260,927$ Underwriting 1,273,954$ 49,146,102$ Eagle Bend Proforma Current.xlsx Page 1 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 1 EBA - Opt 6 - LIHTC - No Cash Out Sources 10 Stonebridge Dr. Avon, CO 81620 Construction Construction Loan -$ 0% New Perm Proceeds 24,505,657$ 50% EB-5 Funds -$ Tax Credit Equity 4% 1,153,599$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing 20,331,214$ Unit Sales -$ Deferred Reserve Costs 1,273,954$ Deferred Developer Fee 881,679$ Total Construction Funds 49,146,102$ Overage (Shortfall) -$ Permanent Sources Perm Lender 19,771,560$ Tax Credit Equity 4% 7,690,657$ Tax Credit Equity 9% -$ Tax Credit Equity - State -$ Tax Credit Equity - ETC -$ NMTC -$ Cap Funds/ Reserves -$ FHLB-AHP -$ Certificate Sales -$ State HOME -$ Existing Reserves 1,000,000$ Developer Financing 20,331,214$ EB5 Repayment Reserve -$ Unit Sales -$ Lease-up Income -$ Deferred Developer Fee 352,671$ Total Perm Funds 49,146,102$ ######## Overage (Shortfall) -$ 50% of Developer Fee deferred during Construction 20% of Developer Fee deferred during Perm Eagle Bend Proforma Current.xlsx Page 2 Sage Peak Solutions, LLC www.sagepeakllc.com Exhibit 2 Project name:EBA - Opt 6 - LIHTC - No Cash Out 5-Jan-17 Development Costs Project Address:10 Stonebridge Dr. Avon, CO 81620 Total Costs $ per Unit $ per SF Affordable Market % of Total 4% Basis 9% Basis Land And Buildings Land Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Existing Structures 30,135,175$ 102,501$ 118.69$ 27,367,659$ 2,767,516$ 61.3%30,135,175$ xxxxx Defeaseance of Bonds -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Prepaid Ground Lease 750,000$ 2,551$ 2.95$ 681,122$ 68,878$ 1.5%xxxxx xxxxx Total Land Costs 30,885,175$ 105,052$ 121.65$ 28,048,781$ 2,836,394$ 62.8%30,135,175$ -$ Permits, Fees, and Studies Permits/Plan Review -$ -$ -$ -$ -$ 0.0%-$ -$ Utility/Public Works -$ -$ -$ -$ -$ 0.0%-$ -$ Market Study 10,000$ 34$ 0.04$ 9,082$ 918$ 0.0%10,000$ 10,000$ Env Impact/Hazards 12,000$ 41$ 0.05$ 10,898$ 1,102$ 0.0%12,000$ 12,000$ Survey/Zoning 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%7,500$ 7,500$ Acquisition appraisal 7,500$ 26$ 0.03$ 6,811$ 689$ 0.0%xxxxx xxxxx Physical Needs Assessment 15,000$ 51$ 0.06$ 13,622$ 1,378$ 0.0%15,000$ 15,000$ Architect 423,696$ 1,441$ 1.67$ 384,785$ 38,911$ 0.9%423,696$ 423,696$ Engineering 52,962$ 180$ 0.21$ 48,098$ 4,864$ 0.1%52,962$ 52,962$ Inspections -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Testing 21,185$ 72$ 0.08$ 19,239$ 1,946$ 0.0%21,185$ 21,185$ Total Permit, Fees, and Studies 549,842$ 1,870$ 2.17$ 499,347$ 50,496$ 1.1%542,342$ 542,342$ Direct Construction Costs by GC Solar Power Array -$ -$ -$ -$ -$ 0.0%-$ -$ Geothermal System -$ -$ -$ -$ -$ 0.0%-$ -$ Site Work -$ -$ -$ -$ -$ 0.0%-$ -$ Surface/Tuck Parking -$ -$ -$ -$ -$ 0.0%-$ -$ Residential - Exisiting 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 21.6%10,592,389$ 10,592,389$ Residential - New -$ -$ -$ -$ -$ 0.0%-$ -$ Landscaping -$ -$ -$ -$ -$ 0.0%-$ -$ Subtotal Building Costs 10,592,389$ 36,029$ 41.72$ 9,619,619$ 972,770$ 21.6%10,592,389$ 10,592,389$ General Requirements 635,543$ 2,162$ 2.50$ 577,177$ 58,366$ 1.3%635,543$ 635,543$ Overhead and Profit 847,391$ 2,882$ 3.34$ 769,570$ 77,822$ 1.7%847,391$ 847,391$ Pymt & Performance Bond 158,886$ 540$ 0.63$ 144,294$ 14,592$ 0.3%158,886$ 158,886$ Insurance by GC -$ -$ -$ -$ -$ 0.0%-$ -$ GMP Contract Total 12,234,210$ 41,613$ 48.19$ 11,110,660$ 1,123,550$ 24.9%12,234,210$ 12,234,210$ Construction Contingency 1,223,421$ 4,161$ 4.82$ 1,111,066$ 112,355$ 2.5%1,223,421$ 1,223,421$ Builder's Risk (for Ownr pd by GC)42,370$ 144$ 0.17$ 38,478$ 3,891$ 0.1%42,370$ 42,370$ Furnishings & Equipment -$ -$ -$ -$ -$ 0.0%-$ -$ Total Direct Construction Costs 13,500,000$ 45,918$ 53$ 12,260,204$ 1,239,796$ 27.5%13,500,000$ 13,500,000$ Indirect Construction Costs Developer's Fee 150,000$ 510$ 0.59$ 136,224$ 13,776$ 0.3%150,000$ 150,000$ Developer's Fee - Profit 1,613,357$ 5,488$ 6.35$ 1,465,192$ 148,165$ 3.3%1,613,357$ 1,613,357$ Development Consultant 65,000$ 221$ 0.26$ 59,031$ 5,969$ 0.1%65,000$ 65,000$ Construction Management 137,000$ 466$ 0.54$ 124,418$ 12,582$ 0.3%137,000$ 137,000$ GL Insurance 122,342$ 416$ 0.48$ 111,107$ 11,235$ 0.2%122,342$ 122,342$ Real Estate Taxes -$ -$ -$ -$ -$ 0.0%-$ -$ Borrower's Legal 125,000$ 425$ 0.49$ 113,520$ 11,480$ 0.3%125,000$ 125,000$ Accounting 40,000$ 136$ 0.16$ 36,327$ 3,673$ 0.1%40,000$ 40,000$ Soft Cost Contingency 78,982$ 269$ 0.31$ 71,728$ 7,253$ 0.2%78,982$ 78,982$ Relocation -$ -$ -$ -$ -$ 0.0%-$ -$ Total Indirect Construction Costs 2,331,681$ 7,931$ 9.18$ 2,117,547$ 214,134$ 4.7%2,331,681$ 2,331,681$ Financing Costs Constr Loan Int. - Const -$ -$ -$ -$ -$ 0.0%-$ -$ Constr Loan Int. - Lease-up -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Construction Loan Fees -$ -$ -$ -$ -$ 0.0%-$ -$ Construction Lender Costs -$ -$ -$ -$ -$ 0.0%-$ -$ Perm Loan Fees 375,660$ 1,278$ 1.48$ 341,160$ 34,499$ 0.8%xxxxx xxxxx Perm Lender Costs 62,100$ 211$ 0.24$ 56,397$ 5,703$ 0.1%xxxxx xxxxx Lender App/3rd Party Fees -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Syndicator Costs -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Tax Credit Fees 142,690$ 485$ 0.56$ 129,586$ 13,104$ 0.3%xxxxx xxxxx Title and Recording - Acq 25,000$ 85$ 0.10$ 22,704$ 2,296$ 0.1%25,000$ 25,000$ Title and Recording -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Total Financing Costs 605,450$ 2,059$ 2.38$ 549,847$ 55,603$ 1.2%25,000$ 25,000$ Lease-up & Reserves Marketing expenses -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Lease-up Reserves -$ -$ -$ -$ -$ 0.0%xxxxx xxxxx Capitalized Operating Reserves 979,954$ 3,333$ 3.86$ 889,958$ 89,996$ 2.0%xxxxx xxxxx Capitalized Replacement Reserves 294,000$ 1,000$ 1.16$ 267,000$ 27,000$ 0.6%xxxxx xxxxx Total Lease/Reserve Expenses 1,273,954$ 4,333$ 5.02$ 1,156,958$ 116,996$ 2.6%-$ -$ Total Development Costs 49,146,102$ 167,164$ 193.57$ 44,632,685$ 4,513,418$ 100.0%46,534,198$ 16,399,023$ Eagle Bend Proforma Current.xlsx Page 3 Sage Peak Solutions, LLC www.sagepeakllc.com Heil Law & Planning, LLC Office: 970.468.0635 1022 Summit Drive Dillon, CO 80435 E-Mail: eric@heillaw.com e-mail: ericheillaw@yahoo.com H EIL L AW TO: Honorable Mayor Fancher and Town Council members FROM: Eric J. Heil, Town Attorney RE: Termination of Benchmark Covenants DATE: January 6, 2017 SUMMARY: Representatives of Traer Creek LLC have requested that the Town of Avon consider, participate and support an effort to terminate the Declaration of Protective Covenants for Benchmark at Beaver Creek Subdivision, originally adopted in 1974 (“Benchmark Covenants”). The Town Council reviewed my introductory memorandum at its regular meeting on September 27, 2016 and provided direction to proceed with efforts to provide notice to property owners and prepare documents necessary for termination of the Benchmark Covenants. My prior memorandum, dated October 20, 2016, and additional attached material can be accessed in the October 25, 2016 Town Council packet on the Town’s website. The Town Council received several public comments and concerns about the proposed termination of the Benchmark Covenants at its October 25, 1016 regular meeting. As a result of receiving this public input, the Avon Town Council took no action on appointing a Landowner’s Committee. Council requested a complete comparison of the Benchmark Covenants to the Avon Development Code. Myself, Virginia Egger, Town Manager and Brian Graham, attorney for Traer Creek LLC, held an open community meeting on November 15, 2016 to receive input, hear concerns and provide information on the Benchmark Covenants. A power point comparison of the Benchmark Covenants to the Avon Development Code was provided. From this meeting, the following issues were identified: 1.  The form of the notice to property owners was confusing and overly legalistic for most recipients and many felt that the notice to property owners should come from the Town. 2.  There was significant concern that some potential benefit to property owners in the existing Benchmark Covenants had not been identified. 3.  There was concern that remaining vacant lots subject to the Benchmark Covenants have not been identified and evaluated. This memorandum suggests a process for moving forward with consideration of terminating the Benchmark Covenants which is stated in the draft Notice to all property owners in the Benchmark Subdivision. The proposed process is as follows: January 20, 2017 - Notice to Property Owners to be mailed by Town. February 28, 2017 – Avon Town Council to conduct public hearing, interview property owners interested in serving on the Landowner’s Committee and take action to appoint five persons to the Landowner’s Committee. M EMORANDUM & PLANNING, LLC Avon Town Council Termination of Benchmark Covenants January 6, 2017 Page 2 of 2 March 14, 2017 – Avon Town Council to take action as a property owner to vote on terminating the Benchmark Protective Covenants and to provide direction to any representatives of the Town of Avon on the Landowner’s Committee. March 15, 2017 – Landowner’s Committee to meet and consider taking action to terminate the Benchmark Protective Covenants. Negative Impact of Terminating the Benchmark Covenants: Upon additional review of the Benchmark Covenants to identify any aspect which protects or benefits property owners in the Benchmark Subdivision better than the existing Town’s regulations, I believe the most significant consequence of terminating the Benchmark Covenants would be the elimination of an individual property owner’s right to bring legal action for enforcement of the Benchmark Covenants. There is a 1979 “Declaration of Additional Protective Covenants” which purports to limit the density to 1,335 residential units by not allowing the sale of lots in the Benchmark Subdivision unless the use is restricted so as to prevent construction of more than 1,335 residential units. All lots in the Benchmark Subdivision have been sold, so this Additional Protective Covenant is legally unenforceable and meaningless at this time. The Town’s zoning and density control regulations in the Avon Development Code are closely coordinated with the Avon Comprehensive Plan and the Town’s water planning, water rights portfolio and water service agreements, so that the density control number stated in 1979 has long since been superseded by community planning efforts. Traer Creek LLC has explained that commercial tenants, especially national tenants, typically review all covenants prior to considering commercial leases. The question which has been asked by prospective national commercial tenants is whether a commercial landlord can guarantee that a PACC will not be resurrected and thereby subject any local approvals for signs or building alterations to a second review and approval process that is in addition to the Town’s process. So long as the Benchmark Protective Covenants remain, such a guarantee cannot be provided. Remaining Vacant Lots: Town staff will identify and provide an analysis of all remaining vacant lots in the Benchmark Subdivision for the February 28, 2017 Town Council public hearing. Town staff believes there is only a small hand-full of vacant lots remaining at this time. ATTACHMENTS: A.  Draft Notice to Property Owners. B.  Comparison of Benchmark Covenants to Avon Development Code and Avon building regulations. NOTICE AND BALLOT MATERIALS TO ALL PROPERTY OWNERS IN THE BENCHMARK AT BEAVER CREEK SUBDIVISION January 20, 2017 NOTICE OF AVON TOWN COUNCIL PUBLIC HEARING BALLOT TO APPOINT PERSONS TO THE LANDOWNER’S COMMITTEE BALLOT TO VOTE ON TERMINATION OF BENCHMARK COVENANTS BY USPS FIRST CLASS MAIL To All Owners Within Benchmark at Beaver Creek Subdivision: The Avon Town Council is evaluating the benefit of terminating the “Benchmark Covenants” (i.e. the Declaration of Protective Covenants for Benchmark at Beaver Creek, originally recorded on February 27, 1974, as amended and restated). This Notice provides you with information concerning the Benchmark Covenants, the process to amend or terminate the Benchmark Covenants, and the proposed process for the Avon Town Council to receive input and consider taking action as the Town. Additional information can be accessed on the Town’s website at _______________ or can be obtained at the Avon Town Hall during normal business hours. BACKGROUND: The Benchmark Covenants were adopted in 1974 before the incorporation of the Town of Avon in 1978 as part of the original Benchmark development. The Benchmark Covenants encumber a substantial portion of the Town’s municipal boundaries. (see the map depicting the original Benchmark Subdivision area on the Town’s website). The Benchmark Covenants allow the owners of a majority of the Benchmark Subdivision property to appoint a five person “Landowners Committee.” The Landowners Committee has various powers, including appointment of a five-member Planning and Architectural Control Committee (“PACC”). The PACC has broad approval authority over many aspects of development. The original Benchmark Covenants were typical of comprehensive development covenants for a large mixed-use planned development whereby the developer sought to retain control and oversight of development in the early stages of the project. Since Avon’s incorporation, the Town of Avon has adopted a Home Rule Charter and Avon Municipal Code (the “Town Code”). Title 7 of the Town Code sets forth the Avon’s Development Code which includes a comprehensive and cohesive set of modern land use, zoning, design and landscaping regulations applicable to all of Avon, including the Benchmark Subdivision. The Benchmark Covenants were amended and restated over time to acknowledge the Town of Avon’s land use regulations and the establishment of an Avon Planning and Zoning Commission with redundant architectural review duties. The last amendment to the Benchmark Covenants in 1990 defers to Avon Planning and Zoning Commission by stating that any plans ATTACHMENT A submitted to and approved by the Avon Planning and Zoning Commission do not need to be submitted to the PACC. The 1990 Amendment to the Benchmark Covenants further states that approval by the Avon Planning and Zoning Commission shall be deemed to be approval of the PACC within 10 days unless the PACC provides notice that the property owner must submitted plans to the PACC for its review and approval. Since adoption of the 1990 Amendment to the Benchmark Covenants, there is no record of any activity by the PACC or the Landowners Committee and all approvals for development have occurred under the review authority and regulations of the Town of Avon. The Benchmark Covenants include provisions which are both redundant and inconsistent with the regulations in the Avon Development Code and Avon building codes. A comprehensive comparison of the Benchmark Covenants to the Avon Development Code and other regulations can be found on the Avon website at ______________. After review of the Benchmark Covenants and consideration of comments received, the Avon Town Council believes that consideration of terminating the Benchmark Covenants is warranted because the Covenants are inactive, outdated, redundant to Avon’s land use regulations and Avon’s Planning and Zoning Commission, and is an unnecessary cloud and encumbrance on property title for property owners in the Benchmark Subdivision. However, the Avon Town Council will not make a final decision until conducting a public hearing as described below. PROCESS TO AMEND BENCHMARK COVENANTS: The Benchmark Covenants may be terminated by either (i) the written consent of the owners of at least 51% of the land within the Benchmark Subdivision, and/or (ii) the written approval of a 4/5ths majority vote of a Landowner’s Committee. The Landowner’s Committee is appointed by the owners of 51% of the land in the Benchmark Subdivision. The Town of Avon owns approximately 55% of the land in the Benchmark Subdivision; therefore, the Town of Avon, through the Avon Town Council, effectively controls the decision to terminate the Benchmark Covenants and the decision to select and appoint five persons to the Landowner’s Committee. However, it is very important to the Avon Town Council to conduct an open public process to receive and consider all input from interested property owners prior to taking any action on the Benchmark Covenants. The Town process for consideration of any action on the Benchmark Covenants is as follows: February 28, 2017 – Avon Town Council will conduct a public hearing regarding the Benchmark Covenants, will interview property owners who are interested in serving on the Landowner’s Committee and will take action to appoint five persons to the Landowner’s Committee. The meeting will be held at 5:00 p.m., or as soon thereafter as possible, at the Avon Town Hall, located at One Lake Street, Avon, Colorado. March 14, 2017 – Avon Town Council will consider voting as a property owner in the Benchmark Subdivision to terminate the Benchmark Covenants and will consider providing direction to any representatives of the Town of Avon on the Landowner’s Committee with regard to voting as a member of the Landowner’s Committee to terminate the Benchmark Covenants. ATTACHMENT A Meeting to be held at 5:00 p.m., or as soon thereafter as possible, at the Avon Town Hall, located at One Lake Street, Avon, Colorado. March 15, 2017 – Meeting of the Landowner’s Committee to consider, and potentially take action, to terminate the Benchmark Covenants. Meeting to be held at 10:00 a.m., or as soon thereafter as possible, at the Avon Town Hall, located at One Lake Street, Avon, Colorado. BALLOT MATERIALS: Included with this NOTICE is a Ballot to Vote to Terminate the Benchmark Covenants and a Ballot to Appoint Five Person to the Landowner’s Committee. ADDITIONAL INFORMATION: The original Benchmark Covenants, including all amendments and restatements, Town staff review materials and other information may be obtained from the Town’s website at __________________ or from the Town Clerk, at the Avon Town Hall, located at One Lake Street, Avon, Colorado, during normal business hours. Town of Avon __________________________________________ Jennie Fancher, Town Mayor [Ballots to be attached to this Notice. The return address will be the Avon Town Hall. The Ballot to appoint 5 persons to the Landowner’s Committee must be returned by February 22, 2017 so that the results can be included in the Avon Town Council packet for the February 28, 2017 Council meeting when the Town Council will take action to appoint five persons to the Landowner’s Committee. The Ballot to terminate the Protective Covenants must be returned to the Town Hall by March 7, 2017 so that the results may be included in the Avon Town Council packet for the March 14, 2017 Avon Council meeting.] ATTACHMENT A Benchmark Protective Covenants –Comparison with Avon Regulations November 15, 2016 The Declaration of Protective Covenants for Benchmark at Beaver Creek Subdivision (“Benchmark Covenants”) was originally adopted in 1974 and were amended or supplemented nine times through 1990. This comparison uses the latest and effective version of the Benchmark Covenants. This comparison was prepared at the direction of the Avon Town Council from the October 25, 2016 regular Council meeting. This comparison addresses the development and design standards and the authority and appointment of development review bodies. ATTACHMENT B Boundary of property subject to the Benchmark Covenants. ATTACHMENT B Boundary of property subject to the Benchmark Covenants. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 1. Development and Design Standards 2. Governing Body and Development Review Board (Benchmark Covenants: Planning and Architectural Control Committee) ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: ZONING-ALLOWED USES Benchmark Covenants Paragraph 3 Uses –designated by lot Avon Regulations Zoning Map ATTACHMENT B U S HWY 6 SWIFT GULCH RD M E TCAL F R D PAINTBRUSH NOTTINGHAM RD E BEAVER CREEK BLVD HURD LN EAGLEBEND DR CHIMING BELLS WILDRIDGE RD E MOUNTAIN STAR RD W BEAVER CREEK BLVD POST BLVD W W ILD W OOD RD YODER AVE BUCK CREE K R D AVON R D RIVERFRONT LN WOODRUSH NOTTINGHAM RANCH RD S H O O TIN G STAR B E A V E R C R E E K P T CHAPEL PL MOUNTAIN SAGE O'NEAL SPUR F AWC ETT RD MILLIES LN BEAVER CREEK BLVD G O L DENROD BLUE FLAX WILD ROS E PRIMROSE WIL D RID GE R D JUNE PT J ASMINE U S HWY 6 OLD TRA IL RD WILDRIDGE RD W L O N G S U N L N B EAR TRAP RD BENCHMARK RD BENCHMARK RD FOX LN L O N G SP U R FLAT P T SUN RD S A D D LE RIDGE LO OP DRAW SPUR N O R T H P T COYOTE RID G E BEAVER CREEK PL GROUND PLUM STO N E B RID GE DR WOODVIOLET R ABBITBRUSH LITTLE PT FERRET LN ROSE CROWN KED SPUR SHEPHERD RIDGE JUNE C R EEK CHIMING BELLS PA IN TB R US H A V O N RD U S HWY 6 LAK E ST PLAZA WAY WILDRIDGE RD E WIL D R ID G E R D METCALF R D WILDWOOD RD OLD TRAIL RD POS T B LVD 8 16 1 16 16 4 2 32 30 5 10 13 23 28 12 15 6 21 14 3 24 9 29 25 7 31 16 17 26 20 27 19 11 23 18 16 33 22 TOWN  OF  AVON OFFICIAL  ZONING  MAP This map was produced by the Community Development Department. Use of this map should be for general purposes only. Town of Avon does not warrant the accuracy of the data contained herein. Phone - 970-748-4030 Fax - 970-949-5749 http://www.avon.org/communitydevelopment Author: JKoenig, Date: 02/17/11 0 1,000 2,000500 Feet Eagle River Nottingham Lake Eagle River Eagle River Zoning Districts Residential Duplex Residential Low Density Residential Medium Density Residential High Density Residential High Density Commercial (Retired) Neighborhood Commercial Shopping Center (Retired) Mixed Use Commercial Town Center Industrial and Commercial Public Facility Park Open Space, Landscaping and Drainage Planned Unit Development Planned Unit Development, Open Space Short Term Overlay PUD BoundaryAvon Town Boundary Roads I-70 Rivers and Lakes PUD Number10 TOWN OF AVON OFFICIAL ZONING MAP Adopted this 8th day of February, 2011, by Ordinance 11-02 _______________________________ Mayor PUD DISTRICTS Attest: _______________________________ Town Clerk PUD Number PUD Name Date Approved 1 Wildridge 1981  (Final  Plat,  2nd) 2 Folson  Annexation 1985  (Ord.  85-08) 3 Falcon  Pointe 1985  (Ord.  85-22) 4 Eaglebend 1986  (Ord.  86-12) 5 Riverside  1986  (Ord.  86-13) 6 Wildridge  Acres 1990  (Ord.  90-15) 7 Foxx  4  PUD 1993  (Ord.  93-04) 8 Mountain  Star 1994  (Ord.  92-21) 9 Westgate 1994  (Ord.  94-10) 10 Nottingham  Station  (Amendment  4)1995  (Ord.  95-07) 11 Lakeside  Terrace 1995  (Ord.  95-24) 12 Ascent  (a.k.a.  “Gates”  &  “Chateau  St.  Claire”)1996  (Ord.  96-16) 13 Chapel  Square 1996  (Ord.  96-25) 14 The  Court  at  Stonebridge 1997  (Ord.  97-05) 15 Brookside  Park 1997  (Ord.  97-13) 16 Village  at  Avon 1998  (Ord.  98-17) 17 Avon  Center  at  Beaver  Creek,  Lot  B 1998  (Ord.  98-23) 18 Grandview  (BMBC/690  Nottingham  Rd)1999  (Ord.  99-04) 19 Point  View  (7plex->  5s.f.)1999  (Ord.  99-08) 20 Grandview  at  Wildridge 2000  (Ord.  00-01) 21 Sheraton  Mtn.  Vista,  Lot  C,  Avon  Center 2000  (Ord.  00-02) 22 Borg 2000  (Ord.  00-05) 23 Barrancas 2001  (Ord.  01-12) 24 Lots  42  &  43  Block  4  Wildridge  (2  4plx->3  dup.)2002  (Ord.  02-11) 25 Dantas  PUD  (2  dup.->3  s.f).2002  (Ord.  02-12) 26 Marcin  PUD  (2  dup.->3  s.f.)2002  (Ord.  02-13) 27 Lot  61 2004  (Ord.  04-01) 28 Western  Sage 2004  (Ord.  04-15) 29 Dry  Creek 2005  (Ord.  05-09) 30 Riverfront 2006  (Ord.  06-03) 31 Red  House 2009  (Ord.  09-07) 32 Buck  Creek  2009  (Ord.  09-08) 33 Gandorf  (1  Com  &  4  aprtmts->2  Dup.)2009  (Ord.  09-14) ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: CONSTRUCTION PLANS Benchmark Covenants Approved by PACC •PACC shall use “reasonable judgment in pass upon all such plans and specifications”. Avon Regulations AMC Title 7 –Avon Development Code AMC Title 15 –Building Code Adopted engineering standards ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: FENCES Benchmark Covenants No fence, wall, or similar type barrier of any kind shall be constructed, erected or maintained on any lot, except such functional or decorative fences and walls as may be approved by the PAAC as an integral or decorative part of a building to be erected on a lot. Avon Regulations Avon Regulations are much more detailed. They define materials, height, layout, amount of enclosure, transparency, and varying standards for different zone districts. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: FENCES Avon Regulations Fence means enclosing framework for exterior areas, such as yards or gardens. [Definitions] AMC 7.28.080 Fences 7.28.080 -Fences. (a)Purpose. The purpose of these regulations is to maintain adequate visibility on private property and in public rights-of-way, to maintain the openness of properties to protect the light and air to abutting properties, to provide adequate screening by regulating the height, location and design and to promote the movement of wildlife through portions of Town. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: FENCES Avon Regulations AMC 7.28.080 Fences (2)All other zone districts: (i)Compatibility. Walls and fences shall be architecturally compatible with the style, materials and colors of the principal buildings on the same lot. If used along collector or arterial streets, such features shall be made visually interesting by integrating architectural elements, such as brick or stone columns, varying the alignment or setback of the fence, softening the appearance of fence lines with plantings or through similar techniques. A fence or wall may not consist of a solid, unbroken expanse length of more than fifty (50) feet. (ii)Materials: (A)Stone walls or brick walls with a stone or cast stone cap, treated wood fences, decorative metal, cast iron fences, stucco walls and stone piers are encouraged. Solid walls and fences are permitted only in rear and side yards. Retaining walls are permitted where required for grading purposes. Hedges may be used in the same manner and for the same purposes as a fence or wall. (B)Fences used in front yards shall be at least fifty percent (50%) open. Allowable fences are split rail, wrought iron, picket or other standards residential fences of a similar nature approved by the Director. (C)Solid fences shall be constructed to meet the wind design criteria of the adopted International Building Code, using a basic wind speed of ninety (90) miles per hour. (D)Other materials may be incorporated in fences and walls and may be approved by the Director. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: FENCES Avon Regulations AMC 7.28.080 Fences (2)All other zone districts: (iii)Prohibited Materials. Contemporary security fencing such as razor wire or barbed wire or electrically charged fences are prohibited. Chain-link fencing with or without slats shall not be used as a fencing material for screening purposes. (iv)Height Limitations. (A)No more than forty-two (42) inches high between the front building line and the front property line. For corner lots, front yard fence regulations shall apply to both street sides of lot. (B)No more than forty-two (42) inches high if located on a side yard line in the front yard, except if required for demonstrated unique security purposes. (C)No more than five (5) feet high for an opaque privacy fence located on a rear property line or on a side yard line in the rear yard. (D)No more than six (6) feet high for opaque privacy fences that are located directly adjacent to and integrated with the architecture of the house or connected to a courtyard. (E)No more than thirty (30) inches high when located within the sight distance triangle. Fences within this sight distance triangle shall not be solid. (F)In the Light Industrial and Commercial (IC) zone district, a chain-link fence is permitted so long as it is not higher than six (6) feet anywhere on the premises and not visible at the intersection. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: SIGNS Benchmark Covenants PACC must approve all signs. PACC shall establish comprehensive sign regulations. THERE IS NO RECORD OF PACC SIGN REGULATIONS. Avon Regulations Chapter 15.28 Sign Code of the Avon Municipal Code sets forth extensive procedures and design standards for signs. The Avon Sign Code is 10 pages long. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: WATER AND SANITATION Benchmark Covenants Structures must be connected to water and sanitation facilities provided by appropriate governmental entity. Avon Regulations Essentially the same. All development must connect to Upper Eagle River Water Authority and Eagle River Water and Sanitation District services. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: TRASH Benchmark Covenants No trash may be dumped in subdivision. Each property owner shall provide suitable receptacles. Avon Regulations AMC 8.12 Garbage and Refuse -18 subsections, notice and enforcement procedures, fines in municipal court. AMC 8.16 Open Burning AMC 8.32 Wildlife Protection -Additional regulations for refuse disposal and best wildlife practices (i.e. bears). ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: LIVESTOCK Benchmark Covenants No livestock keep, raised or bred in subdivision. Dogs and cats governed by Town of Avon regulations. Avon Regulations AMC Title 6 Animals -29 subsections governing definitions, standards, notice, enforcement and fines. Applies to livestock, dogs, cats and other animals. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: TREES Benchmark Covenants “Trees, shrubs and bushes naturally existing upon any lot shall not be cut, trimmed or removed without prior written permission of the PACC.” Avon Regulations AMC Section 7.28.050 Landscaping. -Purposes -Required Minimum Landscaping -Landscape Buffer -Landscape Units -Parking Lot Landscaping Standards -Sight Triangles -Irrigation Standards -Maintenance Obligation ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: SETBACK REQUIREMENTS Benchmark Covenants PACC to determine location of improvements and required setbacks. No standards, probably not enforceable. Avon Regulations AMC Title 7 Development Code -Setback defined (front yard, rear yard, side yard) -Minimum setbacks established for each zone district ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: BUILDING HEIGHT Benchmark Covenants PACC to determine building height. No standards, probably not enforceable. Avon Regulations AMC Title 7 Development Code -Building Height defined with diagrams -Building Heights set for each zone district ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: PARKING REQUIREMENTS Benchmark Covenants PACC to determine required off-street parking. No standards, probably not enforceable. Avon Regulations AMC Section 7.28.020 -Extensive regulations, definitions, standards and diagrams for parking. -Minimum parking requirements for different uses -Required Handicap Parking -Stall dimensions -Off-street loading -Access Drive ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: LANDSCAPING Benchmark Covenants “All surface areas disturbed by construction shall be promptly landscaped and maintained according to approved landscape plans pursuant to paragraph 5 hereof. The PACC shall make rules and regulations specifying the location, type, and quantities of ground cover, plants shrubbery, trees, and similarly related natural and/or artificial materials used and submitted in connection with said landscaping plans.” Avon Regulations AMC Section 7.28.050 Landscaping. -Purposes -Required Minimum Landscaping -Landscape Buffer -Landscape Units -Parking Lot Landscaping Standards -Sight Triangles -Irrigation Standards -Maintenance Obligation ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: TEMPORARY STRUCTURES Benchmark Covenants ”No temporary structure . . . or tent shall be permitted in the Subdivision, except as may be determined to be necessary during construction and specifically authorized by PACC in writing.” Avon Regulations AMC Section 7.24.080 Temporary uses and structures. -8 sections -Administrative or Planning Commission review -Appealable to Council -List of Exempted Activities -Special Events on Public Property -17 review criteria ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: CONTINUITY OF CONSTRUCTION Benchmark Covenants ”All structures commended in the Subdivision shall be prosecuted diligently to completion and shall be completed within twelve months of commencement unless an exemption is granted in writing by the PACC.” Avon Regulations AMC Title 15 -Adoption of International Building Code -Uniform regulation throughout Eagle County and common to the construction industry -Generally, 2 years to complete construction -Town enforcement through Temporary Certificate of Occupancy and Certificate of Occupancy ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: NUISANCE Benchmark Covenants “No noxious or offensive activity shall be carried on within the Subdivision, nor shall anything be done or permitted which shall constitute a nuisance therein.” Reliance on general case to claim a nuisance exists. Avon Regulations AMC Chapter 8.24 Public Nuisances -26 sections -Specific nuisances defined: discharging firearms, keeping junk, weeds, dog waste, times for construction activity, mufflers, ice and snow overhangs, waste light -Procedures for abatement notice and enforcement ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: VARIANCE Benchmark Covenants “A variance from or exception to the provisions hereof as well as a vacation of any easement reserved or described on the recorded plat of the subdivision or herein may be granted in writing by the PACC upon approval thereof by the Town of Avon, Colorado.” Avon Regulations AMC Section 7.16.110 Variance AMC Section 7.16.120 Alternative Equivalent Compliance AMC Section 7.16,130 Right-of- Way Vacation ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: NON-CONFORMING USES AND BUILDINGS Benchmark Covenants •Lawful building or use at time of regulation is allowed to continue. •Restoration is permitted if work commenced within 1 year and completed within 18 months of commencement. •Abandonment is discontinuance for 1 year. Avon Regulations AMC Section 7.04.120 Non- conforming Uses and Structures •Lawful building or use at time of regulation may continue •Nonconforming Use or Structure may not be enlarged •May not be restored if 50% destroyed. •Abandonment is discontinuance for 1 year ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Development and Design Standards: WEED ABATEMENT Benchmark Covenants PACC may cut, trim and control unsightly growth on lots. Avon Regulations AMC Chapter 8.36 Noxious Weed Control •Adoption of local regulations to enforce the Colorado Noxious Weed Act. •Definitions, designation of noxious weeds, enforcement and abatement procedures ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Governing Body and Design Review Board Benchmark Covenants Governing Body: •Originally the Master Developer •5 Member Landowners Committee •Elected by the “owners of 51% of the land in the subdivision" •Town of Avon is the owner of 55% of the land in the subdivision Avon Regulations Governing Body: •Avon Town Council •7 members •Elected by Avon Voters •Vacancies appointed by Avon Town Council ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Governing Body and Design Review Board Benchmark Covenants Design Review Board: •Planning and Architectural Control Committee •5 Member PACC •Appointed by the Landowners Committee •Landowners Committee may alter in part or in total any decision of PACC •Vacancy appointed by Landowners Committee, or after 30 days, Avon Town Council may fill vacancy Avon Regulations Design Review Board: •Avon Planning and Zoning Commission •7 members •AMC Section 7.12.040 •Appointed by Avon Town Council •PZC either makes recommendations to Town Council or may make decisions which may be appealed to the Town Council •Vacancy filled by Avon Town Council ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Governing Body and Design Review Board: CHARGES Benchmark Covenants Design Review Board: •Authorized to charge for costs of review •No fee schedule exists Avon Regulations Development Applications: •Authorized to charge for cost of review •Specific fee scheduled adopted for development applications, building permit applications, sign applications, grading permits, etc. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Governing Body and Design Review Board: ENFORCEMENT Benchmark Covenants Covenants may be enforced by the Landowners Committee, PACC, Town of Avon, or any person owning real property in the Subdivision. Penalties and expense of enforcement may be imposed as a lien on property. Avon Regulations AMC includes: •Penalty provisions •Establishment of municipal court •Each day is a separate violation •Specific violation sections for Development Code, Building Code, and Nuisances •Ability to approve Compliance Agreements ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Governing Body and Design Review Board: STATUS/CAPACITY Benchmark Covenants Currently, no Landowners Committee, PACC or staff for regulation and enforcement exists Avon •Full-time Town Staff in multiple disciplines •Municipal Court •Full-time Town Hall ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Governing Body and Design Review Board: PUBLIC PROCESS Benchmark Covenants •No public process •No notification to property owners or general public •No Public Hearings •PACC and Landowner Committee meetings not required to be public •No appeals rights from PACC to Landowners Committee Avon •Development Code has specific public notice and public hearing requirements –mailings to landowners, postings •Planning and Zoning Commission review •Town Council review or appealable to Town Council •Colorado Open Meetings Act •Ability to file suit in District Court ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Governing Body and Design Review Board: AMENDMENT AND TERMINATION Benchmark Covenants Paragraph 24. Two Steps: 1.Election of Landowners Committee: Landowner’s Committee cannot be elected without the Town of Avon’s Vote. The Town of Avon’s vote will decide the election of the 5 person Landowners Committee. 2.Amendment/Termination of Covenants: Covenants may be amended or terminated with a 4/5 majority vote of the Landowners Committee. ATTACHMENT B Benchmark Covenants Comparison, November 15, 2016 Governing Body and Design Review Board: HYPOTHETICAL REINSTATEMENT Benchmark Covenants Reinstatement and re-activation of the Landowners Committee and PACC would require affirmative action and approval by the Avon Town Council. Any such reinstatement and reactivation would require adoption of meaning regulations with defensible standards for all design requirements. Such standards and regulations would hypothetically be the same as Avon’s existing regulations. Different standards would create complication and extra cost for development in Avon. The PACC would serve the same function as the Avon Planning and Zoning Commission. A separate PACC would require duplicative review for each development and building permit. The Covenants do not have a Comprehensive Plan ATTACHMENT B Governing Body and Design Review Board: HYPOTHETICAL REINSTATEMENT Benchmark Covenants The Benchmark Covenants do not have a Comprehensive Plan Town of Avon Comprehensive Plan February 2006 (Revised March 2008) ATTACHMENT B ATTACHMENT B Governing Body and Design Review Board: HYPOTHETICAL REINSTATEMENT Avon Comprehensive Plans also include: •Transportation Plans •Trails Plan •West Town Center Investment Plan ATTACHMENT B Benchmark Protective Covenants –Comparison with Avon Regulations November 15, 2016 Questions –Comments? ATTACHMENT B TOWN OF AVON MEETINGS FOR TUESDAY, JANUARY 10, 2017 AVON LIQUOR AUTHORITY MEETING BEGINS AT 8:15 PM AVON TOWN HALL, ONE LAKE STREET _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 3 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA 4. RENEWAL OF LIQUOR LICENSES 4.1. APPLICANT: BOB’S PLACE, LLC D/B/A BOB’S PLACE LOCATION: 100 W. BEAVER CREEK BLVD TYPE: HOTEL AND RESTAURANT LICENSE MANAGER: ROBERT DOYLE 4.2. APPLICANT: MILLERS BOTTLE SHOP, LLC D/B/A JOE’S LIQUORS LOCATION: 1060 W. BEAVER CREEK BLVD. #1B TYPE: LIQUOR STORE LICENSE MANAGER: SCOTT SEITZ 4.3. APPLICANT: 3 DRAGONS, LLC D/B/A CHINA GARDEN LOCATION: 100 W. BEAVER CREEK BLVD. TYPE: HOTEL AND RESTAURANT LICENSE MANAGER: MARTIN RODOSH 4.4. APPLICANT: HCCL, LLC D/B/A BOXCAR LOCATION: 182 AVON ROAD SUITE 208 TYPE: HOTEL AND RESTAURANT LICENSE MANAGER: CARA LUFF 5. MINUTES FROM DECEMBER 13, 2016 6. ADJOURNMENT LIQUOR AUTHORITY REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Debbie Hoppe, Town Clerk Meeting Date: January 10, 2017 Agenda Topic: Renewal Application–Bob’s Place PROPOSED MOTION I move to approve (or deny stating the reasons for denial) the Renewal Application for Bob’s Place, LLC d/b/a Bob’s Place. ACTION BEFORE COUNCIL The Town Council serving as the Avon Liquor Licensing Authority will consider the following Liquor License Application for renewal at its Board meeting next week: Applicant: Bob’s Place, LLC d/b/a Bob’s Place Location: 100 W. Beaver Creek Blvd Type: Hotel and Restaurant License Manager: Robert Doyle BACKGROUND Colorado Liquor Code, 12-47-302, provides for guidelines related to liquor licensing renewals; applications for the renewal of an existing license shall be made to the local licensing authority. The Town Clerk, Town Attorney, and Police Department have reviewed the application submitted and referenced above and the materials are in order. The Police Report results show the following information: Bob’s Place, LLC d/b/a Bob’s Place : There have been no concerns or violations during the past 5 years. The owner/manager has been invited to attend the Liquor Authority meeting. During the liquor license renewal process, the Liquor Authority has broad discretion to consider any character issues related to the licensee holder at renewal in the same manner as granting a license. If there have been various types of behavior, such as failure to pay taxes and fraud, the courts have held these behaviors as a valid reason to find the applicant does not possess character. The Colorado Liquor Code §12-47-302 sets forth the local authority’s ability to hold a hearing on the application for renewal. The Avon Liquor Authority may only approve or deny a renewal application and does not have authority to impose conditions on a renewal. Attachments:  State of Colorado Renewal Application Form  Avon Police Department Summary Reports LIQUOR AUTHORITY REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Debbie Hoppe, Town Clerk Meeting Date: January 10, 2017 Agenda Topic: Renewal Application–Joe’s Liquors PROPOSED MOTION I move to approve (or deny stating the reasons for denial) the Renewal Application for Millers Bottle Shop, LLC d/b/a Joe’s Liquors. ACTION BEFORE COUNCIL The Town Council serving as the Avon Liquor Licensing Authority will consider the following Liquor License Application for renewal at its Board meeting next week: Applicant: Millers Bottle Shop, LLC d/b/a Joe’s Liquors Location: 1060 W. Beaver Creek Blvd. #1b Type: Liquor Store License Manager: Scott Seitz BACKGROUND Colorado Liquor Code, 12-47-302, provides for guidelines related to liquor licensing renewals; applications for the renewal of an existing license shall be made to the local licensing authority. The Town Clerk, Town Attorney, and Police Department have reviewed the application submitted and referenced above and the materials are in order. The Police Report results show the following information: Millers Bottle Shop, LLC d/b/a Joe’s Liquors: There have been no concerns or violations during the past 5 years. The owner/manager has been invited to attend the Liquor Authority meeting. During the liquor license renewal process, the Liquor Authority has broad discretion to consider any character issues related to the licensee holder at renewal in the same manner as granting a license. If there have been various types of behavior, such as failure to pay taxes and fraud, the courts have held these behaviors as a valid reason to find the applicant does not possess character. The Colorado Liquor Code §12-47-302 sets forth the local authority’s ability to hold a hearing on the application for renewal. The Avon Liquor Authority may only approve or deny a renewal application and does not have authority to impose conditions on a renewal. Attachments:  State of Colorado Renewal Application Form  Avon Police Department Summary Reports 1 LIQUOR AUTHORITY REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Debbie Hoppe, Town Clerk Meeting Date: January 10, 2017 Agenda Topic: Renewal Application–China Garden PROPOSED MOTION I move to approve (or deny stating the reasons for denial) the Renewal Application for 3 Dragons, LLC d/b/a China Garden. ACTION BEFORE COUNCIL The Town Council serving as the Avon Liquor Licensing Authority will consider the following Liquor License Application for renewal at its Board meeting next week: Applicant: 3 Dragons, LLC d/b/a China Garden Location: 100 W. Beaver Creek Blvd. Type: Hotel and Restaurant License Manager: Martin Rodosh BACKGROUND Colorado Liquor Code, 12-47-302, provides for guidelines related to liquor licensing renewals; applications for the renewal of an existing license shall be made to the local licensing authority. The Town Clerk, Town Attorney, and Police Department have reviewed the application submitted and referenced above and the materials are in order. The Police Report results show the following information: 3 Dragons, LLC d/b/a China Garden: There have been no concerns or violations during the past year with current management. Under the previous management China Garden failed a State Liquor Enforcement compliance check on 5/16/13. China Garden also failed an Avon Police Liquor Enforcement check on 9/14/12. Alcohol had been sold to a minor in the enforcement checks. The owner/manager has been invited to attend the Liquor Authority meeting. During the liquor license renewal process, the Liquor Authority has broad discretion to consider any character issues related to the licensee holder at renewal in the same manner as granting a license. If there have been various types of behavior, such as failure to pay taxes and fraud, the courts have held these behaviors as a valid reason to find the applicant does not possess character. The Colorado Liquor Code §12-47-302 sets forth the local authority’s ability to hold a hearing on the application for renewal. The Avon Liquor Authority may only approve or deny a renewal application and does not have authority to impose conditions on a renewal. 2 Attachments:  State of Colorado Renewal Application Form  Avon Police Department Summary Reports LIQUOR AUTHORITY REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Debbie Hoppe, Town Clerk Meeting Date: January 10, 2017 Agenda Topic: Renewal Application–Boxcar PROPOSED MOTION I move to approve (or deny stating the reasons for denial) the Renewal Application for HCCL, LLC d/b/a Boxcar. ACTION BEFORE COUNCIL The Town Council serving as the Avon Liquor Licensing Authority will consider the following Liquor License Application for renewal at its Board meeting next week: Applicant: HCCL, LLC d/b/a Boxcar Location: 182 Avon Road Suite 208 Type: Hotel and Restaurant License Manager: Cara Luff BACKGROUND Colorado Liquor Code, 12-47-302, provides for guidelines related to liquor licensing renewals; applications for the renewal of an existing license shall be made to the local licensing authority. The Town Clerk, Town Attorney, and Police Department have reviewed the application submitted and referenced above and the materials are in order. The Police Report results show the following information: HCCL, LLC d/b/a Boxcar: There have been no concerns or violations during the past 3 years of doing business. The owner/manager has been invited to attend the Liquor Authority meeting. During the liquor license renewal process, the Liquor Authority has broad discretion to consider any character issues related to the licensee holder at renewal in the same manner as granting a license. If there have been various types of behavior, such as failure to pay taxes and fraud, the courts have held these behaviors as a valid reason to find the applicant does not possess character. The Colorado Liquor Code §12-47-302 sets forth the local authority’s ability to hold a hearing on the application for renewal. The Avon Liquor Authority may only approve or deny a renewal application and does not have authority to impose conditions on a renewal. Attachments:  State of Colorado Renewal Application Form  Avon Police Department Summary Reports TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET FINAL - LA 12-13-2016 Minutes.docx Page 1 1. CALL TO ORDER AND ROLL CALL Chairman Fancher called the meeting to order at 5:01 p.m. A roll call was taken and Board members present were Megan Burch, Amy Phillips, Jake Wolf, Scott Prince and Sarah Smith Hymes. Matt Gennett was absent. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Police Chief Greg Daly, Fleet Director Rego Omerigic, Town Engineer Justin Hildreth, Planning Director Matt Pielsticker, Executive Assistant to the Town Manager Preston Neill and Town Clerk Debbie Hoppe. 2. APPROVAL OF AGENDA There were no changes to the agenda. 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON TOPICS NOT ON THE AGENDA No public comments were made. 4. REPORT OF CHANGES- CORPORATION MASTER FILE Start time: 00:01:02 4.1. Applicant: Dillon Companies, Inc. d/b/a City Market No. 26 Location: 72 beaver Creek Place Manager: Jeff Gentilini Chairman Fancher noted that all application materials were in order. Board member Burch moved to approve the report of changes for Dillon Companies, Inc. d/b/a City Market No. 26. Board member Phillips seconded the motion and it passed unanimously by those present. Board member Gennett was absent. 4.2. Applicant: Avon Properties Leasing, LLC d/b/a Village Warehouse Wines Location: 101 Fawcett Drive Manager: Peter A. Cuccia Peter Cuccia was present and noted that Traer Creek has never had a financial interest in the store. Vice Chairman Smith Hymes moved to approve the report of changes for Avon Properties Leasing, LLC d/b/a Village Warehouse Wines. Board member Phillips seconded the motion and it passed unanimously by those present. Board member Gennett was absent. 5. RENEWAL OF LIQUOR LICENSES Start time: 00:03:48 5.1 Applicant: Columbine Bakery, Inc. d/b/a Columbine Bakery Location: 51 Beaver Creek Place Type: Hotel and Restaurant License Manager: Daniel Niederhauser Chairman Fancher noted that all application materials were in order. TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET FINAL - LA 12-13-2016 Minutes.docx Page 2 Vice Chairman Smith Hymes moved to approve the renewal application for Columbine Bakery, Inc. d/b/a Columbine Bakery. Board member Phillips seconded the motion and it passed unanimously by those present. Board member Gennett was absent. 6. MINUTES FROM NOVEMBER 15, 2016 Start time: 00:04:34 Vice Chairman Smith Hymes moved to approve the minutes from November 15, 2016, Liquor Authority meeting. Board member Prince seconded the motion and it passed unanimously by those present. Board member Gennett was absent. Board member Phillips abstained from the vote. 7. ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 5:06 p.m. RESPECTFULLY SUBMITTED: ____________________________________ Debbie Hoppe, Secretary APPROVED: Jennie Fancher ______________________________________ Jake Wolf ______________________________________ Matt Gennett ______________________________________ Megan Burch ______________________________________ Albert “Buz” Reynolds ______________________________________ Scott Prince ______________________________________ Sarah Smith Hymes ______________________________________ TOWN OF AVON MEETINGS FOR TUESDAY, JANUARY 10, 2017 AVON URBAN RENEWAL AUTHORITY MEETING BEGINS AT 8:30 PM AVON TOWN HALL, ONE LAKE STREET _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 4 1. CALL TO ORDER & ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA 4. ACTION ITEMS – CONSENT AGENDA 4.1. APPROVAL OF RESOLUTION 17-01, DESIGNATING LOCATIONS FOR POSTING THE NOTICES OF PUBLIC MEETINGS (AVON URA TREASURER SCOTT WRIGHT) 4.2. APPROVAL OF DECEMBER 13, 2016 URA MEETING MINUTES (AUTHORITY CLERK DEBBIE HOPPE) 5. ADJOURNMENT AVON URBAN RENEWAL AUTHORITY REPORT To: Honorable Chairperson Jennie Fancher and URA Commissioners From: Scott Wright, Treasurer Date: January 10, 2017 Topic: Resolution 17-01 – Designating Locations for Posting the Notices of Public Meetings ACTION BEFORE THE COMMISSIONERS C.R.S. Section 24-6-402(2)(c) requires that the Authority’s posting places must be designated at the first regular meeting of the calendar year as part of Colorado’s “Open Meetings Law”. Resolution 17-01 is presented to satisfy this requirement whereby it identifies four public locations used for posting notices of the Avon Urban Renewal Authority’s public meetings in addition to the Town of Avon’s website. PROPOSED MOTION “Move to approve Resolution 17-01 Designating Locations for Posting the Notices of Public Meetings.” ATTACHMENT Resolution 17-01 AVON URBAN RENEWAL AUTHORITY RESOLUTION 17-01 A RESOLUTION TO DESIGNATE A PUBLIC PLACE WITHIN THE BOUNDARIES OF THE AUTHORITY WHERE NOTICES OF MEETINGS OF THE AUTHORITY’S BOARD OF COMMISSIONERS SHALL BE POSTED WHEREAS, the Avon Urban Renewal Authority (the “Authority”) is a duly organized body corporate and politic under and by virtue of the laws of the State of Colorado including the Urban Renewal Law, constituting Part 1 of Article 25 of Title 31, Colorado Revised Statutes (“C.R.S.”); and WHEREAS, the Board of Commissioners of the Authority (the “Board”) is required by Section 24-6-402(2)(c), C.R.S., to designate the public place or places for posting notice of its meetings annually at the Board’s first regular meeting of each calendar year; and WHEREAS, the meeting of the Board on the date hereof represents the first regular meeting of the Board for calendar year 2017. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE AVON URBAN RENEWAL AUTHORITY: Notice of meetings of the Board required pursuant to Section 24-6-401, et seq., C.R.S. shall be posted within the boundaries of the Authority at least 24 hours prior to each meeting at the following locations: Avon Town Hall, One Lake Street Avon Recreation Center, 90 Lake Street Avon Public Library, 200 Benchmark Road Avon Elementary School, 850 W Beaver Creek Boulevard Town of Avon Website - www.avon.org ADOPTED this 10th day of January 2017. AVON URBAN RENEWAL AUTHORITY (SEAL) Jennie Fancher, Chairman ATTEST: Virginia Egger, Secretary CERTIFIED BY: Debbie, Hoppe, Authority Clerk TOWN OF AVON, COLORADO MINUTES FOR THE URBAN RENEWAL AUTHORITY MEETING FOR DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET 1 1. CALL TO ORDER & ROLL CALL Chairman Fancher called the meeting to order at 7:58 p.m. A roll call was taken and Authority members present were Jake Wolf, Matt Gennett, Amy Phillips, Megan Burch, Scott Prince and Sarah Smith Hymes. Also present were Executive Director/Secretary Virginia Egger, Town Attorney Eric Heil, Assistant Town Manager Scott Wright, Police Chief Greg Daly, Planning Director Matt Pielsticker, Fleet Director Rego Omerigic, Executive Assistant to the Town Manager Preston Neill and Town Clerk Debbie Hoppe. 2. APPROVAL OF AGENDA There were no changes to the agenda. 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA No comments were made. 4. ACTION ITEM 4.1. Action on Resolution 16-04, A Resolution Authorizing the Issuance of the Avon Urban Renewal Authority Tax Increment Revenue Bonds, Series 2017 (Avon URA treasurer Scott Wright) Authority member Phillips moved to approve Resolution No. 16-04, a Resolution of the Board of Commissioners of the Avon Urban Renewal Authority authorizing the issuance of the Avon Urban Renewal Authority, Tax Increment Revenue Bonds, Series 2017. Authority member Smith Hymes seconded the motion and it passed on a 6 to 1 vote. Authority member Wolf voted no. 4.2. Action on Resolution 16-05, A Resolution expressing the Intent of the Board to be Reimbursed for Certain Expenses Relating to the Financing of Town Hall (Avon URA treasurer Scott Wright) Authority member Smith Hymes moved to approve Resolution 16-05, a Resolution expressing the intent of the Board to be reimbursed for certain expenses relating to the financing of Town Hall. Authority member Phillips seconded the motion and it passed on a 6 to 1 vote. Authority member Wolf voted no. 4.3. November 15, 2016 URA Meeting Minutes (Authority Clerk Debbie Hoppe) Authority member Burch moved to approve the November 15, 2016, URA meeting minutes. Authority member Smith Hymes seconded the motion and it passed on a 5 to 1 vote. Authority member Phillips abstained. Authority member Wolf voted no. Authority member Wolf asked that the minutes be more descriptive. Michael Cacioppo agreed with Authority member Wolf and stated he had suggested this in the past to Council. 5. WRITTEN REPORT 5.1. BOND ISSUANCE SCHEDULE AND TERM SHEET FOR SERIES 2016 TAX INCREMENT FINANCING REVENUE BONDS FOR THE URA TENANT FINISHES AT THE NEW TOWN HALL ( ASSISTANT TOWN MANAGER SCOTT WRIGHT) TOWN OF AVON, COLORADO MINUTES FOR THE URBAN RENEWAL AUTHORITY MEETING FOR DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET 2 6. ADJOURNMENT There being no further business to come before the Authority, the meeting adjourned at 8:13 p.m. RESPECTFULLY SUBMITTED: __________________________________________ Debbie Hoppe, Authority Clerk APPROVED: Jennie Fancher ________________________________ Jake Wolf ________________________________ Matt Gennett ________________________________ Megan Burch ________________________________ Amy Phillips ________________________________ Scott Prince ________________________________ Sarah Smith Hymes ______________________________ TOWN COUNCIL REPORT To: Avon Town Council From: Jennie Fancher, Mayor Meeting Date: January 10, 2017 Topic: 2017 Board, Committee, Authority and Other Agency Appointments Action Before Council: Review and Approval of Appointments to Board, Committee, Authority and Other Agency Appointments Proposed Motion: “I move to approve the appointments to committees, boards, authorities, etc. as presented in Attachment A” or “I move to approve the appointments to committees, boards, authorities, etc. as amended/recommended.” Summary: Each year the Avon Town Council revisits the appointments to committees, boards, authorities, etc. Appointments are made by motion and vote. Council Requests for Appointment to Existing Positions: I made a request to Council inquiring about interest in remaining on the same committees, boards, authorities, etc., dropping appointments, or adding an appointment. The following requests were received. Amy Phillips has interest in the Beaver Creek Liaison, High Five Media Access, ECO Transit, Economic Development, EGE Air Alliance, and Arts & Culture, in that order. Councilor Phillips also has interest in being the alternate for the UERWA Megan Burch would like to stay on the Affordable Housing board and is interested in CML or CAST. Sarah Smith Hymes would like to stay on the UERWA, has interest in ECO Transit and would like to stay involved with CAST. Scott Prince would like to stay with his current committees, Home Buyer Assistance, VVMBA, Economic Development Alternate, and is interested in being involved as a liaison with Beaver Creek. Jennie Fancher would like to stick with her current appointments, CAST, Eagle County Economic Development Advisory Council, Traer Creek Liaison, Beaver Creek Liaison. While serving as a Beaver Creek Liaison is a desired priority is not opposed to letting Council members Phillips and Prince serve and Fancher be the alternate if needed. Recommendation for New Liaison Opportunities: • New Cultural and Arts Liaisons positions are being recommended with a goal of serving as Town liaisons to the Avon's cultural and arts community, perhaps a catalyst to the creation of a creative district and overall cultural enhancements to the town. My recommendation would be to have Jake Wolf and Amy Phillips serve in this role. • Council member Phillips’ interest in economic development sparked the recommendation for the creation of Economic Development/Business Outreach Liaisons in town. I would like to recommend Amy Phillips and myself, Jennie Fancher, fill this role unless others are interested. Recommended 2017 Appointments: I am providing my recommendations for 2017 appointments as shown in Attachment A, based upon individual requests, opportunities for more liaison work and openings where no Council member made a request. Attachment: Attachment A: 2017 Board, Committee, Authority and Other Agency Appointments AGENCY DESCRIPTION 2017 COUNCIL & TOWN MANAGER ASSIGNMENTS Upper Eagle Regional Water Authority Town's voting representative on the six member board; responsible for all elements of delivering potable water to the Town Appointment: Primary appointment must be an elected official. Alternate may be Town Manager (or designee) or citizen Primary Representative: SARAH SMITH HYMES Alternate: AMY PHILLIPS Eagle County Regional Transportation Authority & Eagle County Regional Trails (ECO) A nine member board of elected officials from the incorporated towns was established to develop operating policy. This board has since been reduced to eight members who represent the towns of Red Cliff, Minturn, Vail, Avon, Eagle, Gypsum, Eagle County Government and Beaver Creek. The half-cent county sales tax is dedicated to funding regional transportation. One- tenth of this tax goes toward funding the regional trails system. Town's voting representative on Eagle County's Transit & Trails Advisory Board. Appointment: Elected or staff Primary Representative: AMY PHILLIPS Alternate: SARAH SMITH HYMES Eaglebend, Kayak Crossing & Buffalo Ridge Housing Corporations The management of the Corporation is accomplished through a Board of Directors (the "Board") which oversees administration, operations and maintenance of the Project. The board consists of 5 directors. The property is being managed by Polar Star Properties under an agreement with the Corporation. The present members of the Board are Gerald E. Flynn, Jeffery M. Spanel, Craig Ferraro and Megan Burch. Appointment: Elected or Appointed Town Council also must approve other board member appointments when a vacancy occurs. Board Member: MEGAN BURCH Alternate Board Member: VIRGINIA EGGER ATTACHMENT A TOWN OF AVON 2017 BOARD, COMMITTEE, AUTHORITY AND OTHER AGENCY APPOINTMENTS January 10, 2017 Public Access TV: High Five Access Media Voting representative on the Board of the nonprofit organization that manages non commercial public, educational and governmental programming; receives Town's PEG fees from COMCAST Appointment: Elected Appointment: Board Member: AMY PHILLIPS Alternate Board Member: JAKE WOLF Colorado Municipal League Policy Committee The CML Policy Committee is a standing committee that develops the League's legislative program. The membership is composed of representatives from each member municipality, CML sections, and district presidents. Voting representative on policy matters before the State Legislature Appointment: Elected or Town Manager Primary Representative: MATT GENNETT Alternate: JAKE WOLF Colorado Association of Ski Towns CAST members use the power of the coalition to seek support for legislation that will benefit and sustain the mountain communities. We support actions that keep our communities livable, protect our pristine environment, and promote community-based land use, mass transit, affordable housing, and sustainable tourism. Our goal is to foster growth that will ensure an exceptional quality of life for citizens and a positive experience for visitors Voting representative on ski town consortium Appointment: Elected, if desired Town Manager regularly attends; non-voting if an Elected Official is appointed Primary Elected Representative: JENNIE FANCHER Alternate: Varies by Interest and Availability I-70 Coalition Voting representative from towns & counties along the I-70 corridor working to reduce I-70 vehicular congestion and improve safety. Also continues to evaluate proposed magnetic train(Guideway System) Appointment: Elected or Town Manager Appointment: VIRGINIA EGGER VVP: 1. EGE Air Alliance The EGE Air Alliance is a 501-c6 non-profit public-private partnership that provides the funding to make the Eagle County Regional Airport (EGE) a vital part of the Eagle County economy with a vibrant flight service program. Formed in 2002, the EGE Air Alliance partnership includes government entities and private business stakeholders in local towns within Eagle County. Serves as representative to discuss regional airport topics of concern. Appointment: Elected or Town Manager Board Member AMY PHILLIPS Alternate: VIRGINIA EGGER VVP: 2. Economic Development Leadership Council serves under the umbrella of the Vail Valley Partnership Vail Valley Economic Development Advisory Council Contact Names: Chris Romer Economic Development Leadership Council: Serves as representative on the advisory board to the VVP governing board; assists with regional & local collaboration, research, and follow through on economic development initiatives. Vail Valley Economic Development Advisory Council: The Advisory Council is a resource and sounding board for the Partnership. The Advisory Council will provide advisement on issues at hand to ensure that local economic development activities undertaken by VVED are relevant to the needs of the business community and remain aligned to the core mission. Primary Representative: Elected or Appointed Appointment: Primary Council member JENNIE FANCHER Alternate: SCOTT PRINCE Vail Valley Mountain Bike Association Regional committee focused on achieving IMBA Gold Designation. VVMB coordinates volunteer trail work, organizes events, trains volunteer trail construction crew leaders and contributes its talents, guidance and time to support local land managers in various soft surface trail initiatives. Appointment: Elected or Appointed Appointment: Primary: SCOTT PRINCE Alternate: MATT GENNETT Eagle County Home Buyer Assistance Committee ("HBAC") Tori Franks: Eagle County (328-8775) Eagle County Housing & Development Department The Eagle County Homebuyers Assistance Committee (HBAC) is a volunteer committee, who represents public and private entities throughout the valley. We are an advisory committee, to the Board of County Commissioners who, working closely with the Eagle County Housing Department, recommends policies regarding the Eagle County Home Buyers Assistance Programs and First Time Home Buyers Education Classes. Appointment: Elected Committee Member SCOTT PRINCE Traer Creek Liaisons Join the Town Manager in quarterly meetings to stay informed & updated on development topics Appointment: Elected or Appointed Two Appointees JENNIE FANCHER MATT GENNETT Hoffmann Commercial Real Estate Liaisons Join the Town Manager in quarterly meetings to stay informed & updated on development topics Appointment: Elected or Appointed Two Appointees JENNIE FANCHER SARAH SMITH HYMES Beaver Creek Resort Committee (Bus, Marketing & Liaison) Contact Name: Jen Brown 845- 5971 Town Liaison to BCRC on joint matters of concern Appointment: Elected or Appointed Appointment: Two Appointees: AMY PHILLIPS SCOTT PRINCE Alternate: JENNIE FANCHER Cultural and Arts Liaisons Serve as Town liaisons to Avon's cultural and arts community Appointment: Elected or Appointed Two Appointees: JAKE WOLF AMY PHILLIPS Economic Development/Business Outreach Liaisons Serve as Town liaisons to Avon's business community Appointment: Elected or Appointed Two Appointees AMY PHILLIPS JENNIE FANCHER Asset Forfeiture Committee Reviews forfeitured collections and recommends disposal and use of any monies Appointment: Elected JENNIE FANCHER 1 Council Report – Review and Action: 2017 Free Special Events Program TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Danita Dempsey, Director of Festivals & Special Events Meeting Date: January 10, 2017 Agenda Topic: REVIEW AND ACTION ON THE TOWN OF AVON 2017 FREE EVENTS PROGAM AND REQUESTED FUNDING SUPPORT ACTION BEFORE COUNCIL: To review and approve, approve with changes or deny the 2017 Free Events Program and Requested Funding Support of $226,193. PROPOSED MOTION: I move to approve (approve with changes or deny) the 2017 Free Events Program and funding of $226,193 appropriated from the 2017 General Fund Special Events Assigned Fund Balance, and up to $9,120 of in-kind services. BACKGROUND: At the Review of the Town of Avon Special Event Venue and Funding Investments at the Avon Town Council meeting on September 21, 2016; staff was provided direction to: 1. Review the free events programming to determine if it was more cost effective for the Town to produce the free events as listed and hire a producer for the purpose of talent acquisition and management, sound, light and stage management; and, 2. Further develop events mid-May through mid-October 2016 FREE EVENTS SUMMARY: 1. Private and Non Profit Produced Events 1.1. Four (4) free events programs were produced: Après Avon, Avon Live! Concerts, Boulder Symphony and Dancing in the Park, totaling eight (8) event days. 1.2. All were produced by private or nonprofit producers. 1.3. Town provided cash funding to the producers of $143,150; and $6,100 of in-kind support. 2. Town Produced Events 2.1. Three (3) free events programs were produced: Salute to the USA, Pop-Up Strings and Lakeside Sunday, totaling seven (7) event days. 2.2. Town provided cash funding of $119,250 which includes all operational needs and support. 2 Council Report – Review and Action: 2017 Free Special Events Program 2017 FREE EVENTS RECOMMENDATION: 1. 2016-2017 Free Events Private and Non Profit Produced Events Comparison 1.1. Staff compared the cost of the Town fully producing the free events in 2016 versus retaining private or nonprofit producers. The comparison contains a recommendation to increase the free events to include one additional evening of Dancing in the Park and Symphony Orchestra. 1.1.1. The comparison showed it is more cost effective for the Town to produce Après Avon, Symphony Orchestra and Dancing in the Park, for a savings of $12,114. No additional FTE or seasonal staff will be needed in other departments. Total cost for these events including the expansion as indicated above in 2017, equals $113,804. 1.1.2. The comparison showed it is more cost effective for the Town to retain a private producer for the four Avon Live Concerts. It would cost the Town $10,087 more to bring all production in-house. Total cost for this event series in 2017 equals $79,920 of cash funding; and, in-kind support of $3,745. 2. 2017 Free Events Town Produced New & Expanded Events Recommendation To further develop a diverse complement of special events which are robust, enriching and provide year-round activation utilizing all four event venues, with particular interest in the Main Street Mall and New Town Hall, which includes in the design proposed event space. New Town Hall is expected to be available by October. Staff gathered a group of individuals to act as an “as-hoc committee” to brainstorm event activation ideas. The committee consisted of Justin Hildreth, Rego Omerigic, Danita Dempsey, Preston Neill, Gary Padilla, Valerie Barry, Virginia Egger and Phil Struve. 2.1. The committee generated 19 new event and activation ideas which are listed by month and venue in Attachment A. 2.2. Based off the feed-back received by the committee, staff recommends the following for expansion, implementation and/or development in 2017: 2.2.1. Expansion – Five (5) free events to include: (10 event days) Three additional Pop-Up Performances, for a total of six (6); One additional Dancing in the Park, for a total of two (2); and One additional Symphony Orchestra for a total of two (2) 2.2.2. New Events - Seven (7) free events to include: (22 event days) Easter Egg Roll Running Series Pop-Up Anything Pickleball Tournament Family Movie Night Speaker Lectures Pop-Up Winter Performances 3 Council Report – Review and Action: 2017 Free Special Events Program 2.2.3. Further Event Development – Four (4) free events to include: (11 event days) These are proposed as major multi-day activations, which require significant staff time to develop this year. At such time as an event is fully developed, funding will be requested. Fall Harvest Market Metropolitan Opera Broadcast Winter Market/Bazaar Holiday Lights Parade & Celebration 2.2.4. Off Site Activation – Three (3) event sponsorships at the Bookworm to promote the Skylight Creative Writing event. 2.2.5. The estimated 2017 requested funding support for the full expansion and new event programming implementation and off site activation equals: $113,703 3. 2017 Event Approved to Date Several events have received cash funding approval for 2017 by the Town Council and Town Manager: Missoula Children’s Theatre: $8,749 Major League Triathlon: $3,500 Haute Route Rockies: $49,000 Cover Rock Music Festival: $75,000 Attachment B summarizes the above event costs. TOTAL 2017 SEED FUNDING APPROPRIATION $400,000 TOTAL CASH FUNDING FOR ABOVE LISTED EVENTS $362,442 TOTAL BALANCE, IF FUNDING IS APPROVED $37,558 Staff anticipates receiving additional event proposals, which may require funding in 2017. If Council approves the free events as presented, it should be anticipated that additional special event funding for any major concert or festival and/or the events discussed above for further development will most likely be requested during the year. The $37,558 is adequate to fund smaller recurring requests such as Man of the Cliff and to produce one or two local band evenings at the Pavilion. 4. 2017 Free Event With Alcohol Concessions and Recommendation The Town can hold up to 15 liquor permits in one calendar year; for Town produced events held on Town property at which productions or performances of an artistic or cultural nature are presented. Staff recommends the Town hold the liquor permit for the following events: 4.1 Après Avon (2); Pop-Up Performances (8); Symphony Orchestra (2); Dancing in the Park (2); Haute Route Rockies (1); totaling 15 event days. 4.2 Staff proposes to negotiate with a third-party concessionaire to manage all alcohol sales to ideally include a revenue share opportunity to off-set the cost of production; and, a donation to an Eagle County based non-profit. 4.3 It is not possible to project what revenue from liquor sales will accrue to the Town in 2017. 4 Council Report – Review and Action: 2017 Free Special Events Program 5. Additional Staffing: The scope, budget development and implementation of the new event activations will require changing the current seasonal event assistant into a full time position to assist the Director of Festivals and Special Events. The estimated net increase for salary and benefits equals $25,242. If Council supports the free event programming, then action to approve the position would be acted upon under agenda item 9.5.2. at Tuesday’s meeting. ATTACHMENTS: Attachment A – Activation Schedule & Dates Attachment B – 2017 Special Event Town Contribution Summary Page 1 of 4 ACTIVATIONS Main Street Mall New Town Hall Pa v i l i o n Park Available Dates Budget Estimate Notes Après Avon •18 & 25th $32,600 Two late afernoons; incorporate Mardi Gras theme Egg Hunt / Roll •15th $4,000 Town produced Half-Marathon / Running series • Running Series (4x -6x)•All dates open $5,000 Town produced with potential support from consultant Magic and/or Comedy Show • Pop-Up Anything(2 per month / 8 total)•All dates open $2,000 Pop up businesses with 24 hours notice; identify locations on MSM allowed; days of the week; number per year allowed; etc. Skylight Creative Writing ••9 - 11th $75,000 $75,000 in seed funds paid in 2016 per town manager approval of talent Missoula Children's Theatre ••11 - 17th $8,750 Committee in favor of this event and introducing local students to theatre Haute Route Rockies ••26 - 28th $49,000 Arts Festival • Scientific, Artist in Residence or Other Exhibitions and/or Competitions • Pop-Up Anything •All dates open See Above See Above Pickleball Tournament •Weekend $1,500 Town produced Pop-Up Performances (4)•7, 14, 21 & 28th $6,903 Town produced; committee in favor or six or eight performances Attachment A - ACTIVATION SCHEDULE & DATES March 2017 - March 2018 March April 2018 May 2018 JUNE 2018 2018 JULY Page 2 of 4 ACTIVATIONS Main Street Mall New Town Hall Pa v i l i o n Park Available Dates Budget Estimate Notes Attachment A - ACTIVATION SCHEDULE & DATES March 2017 - March 2018 Dancing in the Park ••31st $25,000 Committee in favor of supporting two dance performances Lacrosse Tournament •19-21st $0 Triple Bypass •7-9th $5,000 Community Grant Colorado Disc Dogs Competition •15th (Lower Field) $0 Xterra Mtn. Championships •15th (Upper Field) $2,500 Community Grant Arts Festival • Scientific, Artist in Residence or Other Exhibitions and/or Competitions • Theatre Performances • Kinetic Sculpture Competition / Race • Family Movie Night (4)•10, 17, 24, 31st $2,100 Town produced; cost of movie, audio visual consultant Battle of the Bands ••4th $7,060 Community Grant - InteGreat! Pickleball Tournament •All dates open See Above See Above Pop-Up Anything •All dates open See Above See Above Pop-Up Performances (2)•4 & 11th $3,452 See Above Bec Tri Sprint Distance Triathlon •4-5th $2,000 Community Grant Dancing in the Park ••9th $25,000 Avon Live! (4)••2, 16, 23 & 30th $79,920 Symphony Orchestra (2)••6, 13 or 20th $33,608 Major League Triathlon ••25 - 27th $3,500 2018 2018 AUGUST 2018 2018 Page 3 of 4 ACTIVATIONS Main Street Mall New Town Hall Pa v i l i o n Park Available Dates Budget Estimate Notes Attachment A - ACTIVATION SCHEDULE & DATES March 2017 - March 2018 Ragnar Relay 12 $0 Pass through on Town owned roads Transrockies Run 17 $0 Pass through on Town owned roads Arts Festival • Scientific, Art, or Other Exhibitions and/or Competitions • Theatre Performances • Kinetic Sculpture Competition / Race • Pop-Up Anything •All dates open See Above Pickleball Tournament •All dates open See Above Farmer's / Fall Harvest Market (4x - 6x)• VVAG Plein Air Sessions / Contest • Arts Festival • Scientific, Art, or Other Exhibitions and/or Competitions • Country Fair • Theatre Performances • Kinetic Sculpture Competition / Race • Man of the Cliff •13, 14, 15th $6,000 Vail Valley Soccer Tournament •7, 8th $0 Metropolitan Opera Broadcast (1 per month / 3 total)• Scientific, Art, or Other Exhibitions and/or Competitions • Oktoberfest •• 2018 2018 2018 OCTOBER DEVELOPMENT DURING 2017 2018 2018 2018 2018 2018 2018 2018 SEPTEMBER DEVELOPMENT DURING 2017 2018 2018 Page 4 of 4 ACTIVATIONS Main Street Mall New Town Hall Pa v i l i o n Park Available Dates Budget Estimate Notes Attachment A - ACTIVATION SCHEDULE & DATES March 2017 - March 2018 Speaker Lectures (1 per month / 2 total)•All dates open $2,200 Ted-Ex; Poetry Slam, etc.; if concept is successful would continue through March 2018 Pop-Up Performances Winter (1 per month / 2 total)•All dates open $1,725 Based of cost of summer production cost; if concept is successful consider continuing through March 2018 Winter Market / Bazaar (4x)• Metropolitan Opera Broadcast (1 per month / 3 total)• Scientific, Art, or Other Exhibitions and/or Competitions • Speaker Lectures (1 per month / 2 total)•All dates open See Above See Above Pop-Up Performances Winter (1 per month / 2 total)•All dates open $1,725 See Above Winter Market / Bazaar (2x)• Holiday Lights Parade Celebration • Metropolitan Opera Broadcast (1 per month / 3 total)• Scientific, Art, or Other Exhibitions and/or Competitions • Author Speaker Sessions to Promote Skylight Cretive Writing Event (3x) One per month (3x)$3,600 Work with Bookworm procure and manage talent, promotions, etc. Events / Activations in Bold are approved or in process OFF-SITE ACTIVATION - FEBRUARY - APRIL 2017 DEVELOPMENT DURING 2017 DEVELOPMENT DURING 2017 DEVELOPMENT DURING 2017 2018 DECEMBER NOVEMBER DEVELOPMENT DURING 2017 DEVELOPMENT DURING 2017 2018 Attachment B - Festival Special Event 2017 Town Contribution Summary PAVILION & PARK - APPROVED TO DATE Event Date Free vs. Ticketed Cash Contribution In Kind Support TOTAL CONTRIBUTION Haute Route Rockies 6/26 - 6/27 Registration / Free to Spectators $49,000 $14,350 $63,350 Creative Writing Event (Funded in 2016)6/9-6/11 Ticketed $0 $5,000 $5,000 Cover Rock Festival 6/23-6/25 Ticketed $75,000 $7,500 $82,500 Missoula Children's Theatre 6/9-6/10 Registration / Free to Spectators $8,749 All Operations $8,749 Major League Triathlon 8/25 - 8/27 Registration / Free to Spectators $3,500 $5,375 $8,875 PAVILION - RECOMMENDED Avon Live! Concert Series** (4 Nights)August Free $79,920 $3,745 $83,665 Dancing in the Park - Vail International Dance (2 Night)July / August Free $47,626 All Operations $47,626 Symphony Orchestra* (2 Nights)August Free $33,608 All Operations $33,608 SUB-TOTAL: SEED FUNDS - PAVILION $297,403 $35,970 $333,373 MSM - RECOMMENDED Event Date Free vs. Ticketed Cash Contribution In Kind Support TOTAL CONTRIBUTION Apres Avon* (2 Saturday afternoons/evenings)March Free $32,570 All Operations $32,570 Pop-Up Strings* (6 Friday Evenings)July / Aug.Free $8,619 All Operations $8,619 SUB-TOTAL: SEED FUNDS - MSM $41,189 $0 $41,189 NEW EVENTS - RECOMMENDED Event Date Free vs. Ticketed Cash Contribution In Kind Support TOTAL CONTRIBUTION Egg Hunt / Roll*April Free $4,000 All Operations $4,000 Running Series* (4x to 6x)May Registration / Free to Spectators $5,000 All Operations $5,000 Pop-Up Anyting (2 month / 8 total)June through Sept.Free $2,000 All Operations $2,000 Pickelball Tournament July, Aug. Or Sept.Registration / Free to Spectators $1,500 All Operations $1,500 Family Movie Night (4 Evenings)August Free $2,100 All Operations $2,100 Speaker Lectures (1 month / 2 total)Nov. - Dec.Free $2,200 All Operations $2,200 Pop-Up Performances Winter (1 month / 2 total)Nov. - Dec.Free $3,450 All Operations $3,450 Author Speaker Sessions to Promote Skylight Writing Event Feb., March, April Free $3,600 $0 $3,600 SUB-TOTAL: SEED FUNDS - NEW EVENTS RECOMMENDED $23,850 $0 $23,850 TOTAL - SEED FUNDS - APPROVED & RECOMMENDED $362,442 $35,970 $374,562 TOTAL SEED FUNDS - AVAILABLE IN 2017 BUDGET $400,000 TOTAL SEED FUNDS - REMAINING BALANCE $37,558 Event Date Free vs. Ticketed Cash Contribution In Kind Support TOTAL CONTRIBUTION Salute to the USA* 7/3 Free $112,950 All Operations $112,950 TOTAL 2017 FESTIVALS & SPECIAL EVENTS FUNDING $475,392 $35,970 $487,512 2017 FESTIVAL AND SPECIAL EVENTS - DATES AND FUNDING GENERAL FUNDS - SALUTE TO THE USA GENERAL FUND - SEED FUNDS - PAVILION & PARK GENERAL FUND - SEED FUNDS - MAIN STREET MALL (MSM) Page 1 of 1 TOWN COUNCIL REPORT To: Avon Town Council From: Jennie Fancher, Mayor Meeting Date: January 10, 2017 Topic: REVIEW AND APPOINTMENT OF AD HOC SPECIAL EVENTS COMMITTEE ____________________________________________________________________________________ ACTION BEFORE COUNCIL: Review and approval of appointments to the Ad Hoc Special Events Committee PROPOSED MOTION: “I move to approve the appointment of the 15 applicants to the Ad Hoc Special Events Committee for a one year term from February 1, 2017 – January 31, 2018” SUMMARY: At the Avon Town Council work session held on September 21, 2016, direction was given to create an Ad Hoc Special Events Committee. This committee will weigh in on the direction of future events in the Town. These events will take place primarily at the Pavilion, in the park, on the mall, and later this year in the New Town Hall. Since September, there have been advertisements in the paper requesting interest from the community. In addition, in early December an email was sent from me, with an application to those who had shown interest along with other names that had been submitted as possible interested parties. In the end, applications were sent to the 21 people, who are listed in Attachment A. Fifteen persons on the list returned an application for appointment to the Committee. The 15 applicants are as follows: • Bobby Bank • Tom Butz • Pedro Campos • Chris Cofelice • David Courtney • Trevor Davis • Jamie Fisher • Mac Garnsey • Derek George • Tim Haley • Lisa Mattis • Dennis McMahon • Kathy Ryan • Trevor Spinks • Ruth Stanley I would like to recommend that all 15 applicants be appointed to the first ever Ad Hoc Special Events Committee. It is encouraging to have so many individuals offering to provide volunteer service to the Town. Individual applications from these interested applicants follow Attachment A. This first group will meet, discuss the role of the committee, come up with a mission statement, and start by examining what is already approved and scheduled. There are some wonderful leaders in this group, which is important for establishing event review criteria, identifying and evaluating events, and determining its purview. The initial role has been established and involves learning about our current events, reviewing our event application form, setting funding criteria and recommending funding when and if a new event comes in. This will be work enough while the group gets established. This group will certainly evolve once it gets rolling in the special events world. This committee will be able to grow and learn together and may naturally pare itself down over the coming months. I will look to have a review of the first year’s activity in the fall of 2017. ATTACHMENTS: Attachment A – List of persons receiving an application, with note to pass along to anyone interested Individual Applications submitted by the 15 interested candidates for the Ad Hoc Special Events Committee ATTACHMENT A List of persons receiving application for Ad Hoc Special Events Committee Bobby Bank Derek George Sam Gupta Diane Moody Lisa Mattis Kathy Ryan Kent Beidel Dennis McMahon Kristen Pryor Brian Nolan Lisa Siegert Free Michelle Courtney Trevor Spinks Duncan Horner Mac Garnsey Pedro Campos Rhonda Niederhauser Matt Trasen Ellen Moritz Tim Haley, Alpine Bank Todd DeJong APPLICATION FOR THE TOWN OF AVON AD HOC SPECIAL EVENTS COMMITTEE TERM JANUARY 15 – DECEMBER 31, 2017 DEADLINE FOR APPLICATION: DECEMBER 31, 2016 Name: Tom Butz Occupation & Place of Employment: Christie Lodge Mailing Address: PO Box 1196, Avon, Colorado 81620 Daytime Phone: 970-845-4527 Email: tbutz@christielodge.com Please briefly describe below your interest in the Ad Hoc Committee for Special Events: The Christie Lodge represents 280 lodging units in Avon and my capacity as Director of Resort Sales and Marketing for Christie Lodge puts me in the ideal position to be on the committee. A large majority of our shoulder and summer business is driven by local special events and they are vital to the success of our rental program. What background, experience, or special skills do you think you can bring to the committee? My experience in mountain resort hospitality spans over 25 years. In addition to holding the positions of director of sales and marketing for lodging properties and a destination management company, I have managed operations for resort hotels. Any additional information we should know about you? I am a Colorado native that grew up in Denver and first moved to the Vail Valley in 1987. In addition to the Vail Valley, I have lived and worked in Telluride and Jackson Hole Wyoming. I love where I live and want to help make Avon a special destination. Thank you! APPLICATION FOR THE TOWN OF AVON AD HOC SPECIAL EVENTS COMMITTEE TERM JANUARY 15 – DECEMBER 31, 2017 DEADLINE FOR APPLICATION: DECEMBER 31, 2016 Name: ______________________________________________________________________ Occupation & Place of Employment: ______________________________________________ Mailing Address: ______________________________________________________________ Daytime Phone: ________________________ Email: ________________________________ Please briefly describe below your interest in the Ad Hoc Committee for Special Events: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ What background, experience, or special skills do you think you can bring to the committee? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Any additional information we should know about you? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Thank you! APPLICATION FOR THE TOWN OF AVON AD HOC SPECIAL EVENTS COMMITTEE TERM JANUARY 15 – DECEMBER 31, 2017 DEADLINE FOR APPLICATION: DECEMBER 31, 2016 Name: ______________________________________________________________________ Occupation & Place of Employment: ______________________________________________ Mailing Address: ______________________________________________________________ Daytime Phone: ________________________ Email: ________________________________ Please briefly describe below your interest in the Ad Hoc Committee for Special Events: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ What background, experience, or special skills do you think you can bring to the committee? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Any additional information we should know about you? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Thank you! 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I L. lt5 APPLICATION FOR THE TOWN OF AVON AD HOC SPECIAL EVENTS COMMITTEE TERM JANUARY 15 – DECEMBER 31, 2017 DEADLINE FOR APPLICATION: DECEMBER 31, 2016 Name: ______________________________________________________________________ Occupation & Place of Employment: ______________________________________________ Mailing Address: ______________________________________________________________ Daytime Phone: ________________________ Email: ________________________________ Please briefly describe below your interest in the Ad Hoc Committee for Special Events: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ What background, experience, or special skills do you think you can bring to the committee? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Any addition information we should know about you? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Thank you! Scanned by CamScanner APPLICATION FOR THE TOWN OF AVON AD HOC SPECIAL EVENTS COMMITTEE TERM JANUARY 15 – DECEMBER 31, 2017 DEADLINE FOR APPLICATION: DECEMBER 31, 2016 Name: ______________________________________________________________________ Occupation & Place of Employment: ______________________________________________ Mailing Address: ______________________________________________________________ Daytime Phone: ________________________ Email: ________________________________ Please briefly describe below your interest in the Ad Hoc Committee for Special Events: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ What background, experience, or special skills do you think you can bring to the committee? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Any addition information we should know about you? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Thank you! Trevor Spinks Realtor with Slifer Smith & Frampton Po Box 7072 Avon, CO 81620 970-390-9063 tspinks@slifer.net I was raised in Eagle County and have lived in Avon for about three years. As a member of the 'millenial' generation I think that I will bring a different perspective. I have a great passion for politics and want to help Avon continue to grow. As a community member in the area for over 20 years I have seen what works and what doesn't. I think that Avon has always done a great job with events and driving high quality tourism, I Also believe that my experience in the hotel, restaurant, and Real Estate have helped me understand those the events that attract visitors and locals alike. I ran for Avon Town Council in 2016 and finished 4th APPLICATION FOR THE TOWN OF AVON AD HOC SPECIAL EVENTS COMMITTEE TERM JANUARY 15 – DECEMBER 31, 2017 DEADLINE FOR APPLICATION: DECEMBER 31, 2016 Name: Ruth Stanley Occupation & Place of Employment: Real Estate Broker, Marketing Manager, Event Planner Mailing Address: P. O. Box 9027, Avon, CO 816320 Daytime Phone: 970-390-4725 Email: VailCoLocal@aol.com Please briefly describe below your interest in the Ad Hoc Committee for Special Events. With the new stage and the new committee I believe I could offer some good personal as well as experienced input and insight into assisting with the future of the town events committee through the group planning, solicitation, budgeting and functioning of our town events. More importantly, would like to assist with making our events successful and profitable for all involved. And putting Avon on the map as a “go to” fun destination. What background, experience, or special skills do you think you can bring to the committee? BACKGROUND & EXPERIENCE Having grown up in the Radio Business (father owned a radio station - WEW) I was automatically thrust into working events for my father’s radio station. We were heavily involved with the Community and held constant “promotions” for the station & clients In college, I worked on the Campus activities committee 4 years where we were Involved with hiring musicians, creating, executing and follow through of all Campus Activities. We attended the NECAA, National Entertainment Campus Activity Association conventions every year where we attended seminars, mingled and met and hired talent for our campuses. Example of how large this convention was, Jackson Browne PLAYED for one of the finale nights one year! (We didn’t have a budget to hire him but Washington University did!) After college I sold for my father’s station, moved into Direct Mail Marketing and was finally hired as an Account Executive for Cable AdNet in St. Louis – the ultimate job in media sales - selling advertising for the likes of ESPN, CNN, Lifetime, and Discovery, to name. We held national promotions promoting the Networks in the St. Louis Market. For Example ESPN: St. Louis Blues Night – we held a function for all of our clients over Ruth Stanley – Page Two 500) in the Arena Cub (where the Blues played) with pregame Live Music, Dinner, Gift Bags and treated them to the hockey game (thanks to ESPN) and then mingled with the Hockey Players themselves. I was also involved with conceiving and executing small promotions as well for my invidividual clients (these clients had budgets of $250,000 + /year for advertising – not really “small” clients). VAIL Experience: 1993 – 1996: KZYR Radio Sales and then Sales Manager, KTUN Radio Sales. Continued my experience in sales and promotions with these stations. Executed or assisted with such promotions for the likes of the Eagle County Fair & Rodeo, Ford Park Concerts, anything community related, we were involved in. Since the radio biz, and working for a Developer, I have created a niche in the market planning and executing weddings, milestone birthday parties, Fundraising, VVCF functions, and concierge activities on the side. Anything to stay involved with “people” and planning. SPECIAL SKILLS: I’m an idea person. I come from years of conceiving & executing the ultimate event. Budgeting: I’m meticulous with sticking to the budget Knowledge: I know the valley. I know people. I know how to follow through. Involved: I NEED to be involved with my community. This committee would be an ideal forum for me to put my past experience and skills to their full potential. WHILE working with prospective event planners, concerts, festivals, etc., and building up my Town’s reputation the THE place to be. PRESENTLY: Real Estate Broker for KW Mountain Properties AND… Working part time on starting my own small business in event planning. Alpenglow Planning and Events (Brochure attached) Familiar with negotiating with vendors as well as clients. Any additional information we should know about you? MAINLY: I’m committed to my community and would like to say I’m a part of it’s growth and prosperity; this appears to be the BEST MEDIUM FOR ME to do that based on my skills & previous experience. PREVOIUS AFFILITATIONS: Founding Member: St. Patrick’s Day Parade Committee, 1976–1993 Judevine Center for Autistic Children, St. Louis, Mo, Father was Co-Founder and President of the Board – I worked with the foundation fundraising as well as assisted with center activities 1970 – 1993. Special Events planner and organizer to the Mayor of St. Louis, MO Mayor Vincent Schoemehl, 1982 – 1984. Personal, City and Political events MAINLY: I’m committed to my community and would like to be apart of it’s growth and Prosperity and this appears to be the BEST MEDIUM FOR ME to do that TOWN COUNCIL REPORT To: Avon Town Council From: Virginia C. Egger Meeting Date: January 10, 2017 Topic: REVIEW AND ACTION ON ANY CHANGES TO THE 2017 REGULAR AND RETREAT MEETING SCHEDULE OVERVIEW Town Council approved the 2017 Regular and Retreat Meeting Schedule on December 13, 2016. Please see Attachment A. Since the approval, new calendar information has come to Mayor Jennie Fancher’s attention, as detailed below. Council may change the regular meeting and retreat schedule by motion and vote at Tuesday’s meeting. • February Mid-Winter Break – A review of the Eagle County Schools calendar shows that the Mid Winter Break is February 13 – 17, 2017. Council may wish to consider changing the February meeting date of February 14th to accommodate the student break. • March 21st Retreat Date – Mayor Pro Tem Sarah Smith Hymes has requested reconsideration of the March 21st Retreat date, as she will be out-of-town. She also notes that it places three meetings in March. • Retreat Facilitator – Please note that Tami Tanoue is available in February to continue as your retreat facilitator. Please note: Changes from a 2nd or 4th Tuesday meeting date, does not allow for live streaming on High Five Access Media. Taping, and then posting the meeting, is available. ATTACHMENT A 2017 Avon Town Council Regular & Retreat Meeting Schedule Adopted December 13, 2016 DATE NOTES January 10, 2017 January 24, 2017 February 14, 2017 Mid-winter Break 2/27 – 3/3 March 14, 2017 March 21, 2016 Council Retreat – Noon to 5 p.m. March 28, 2017 April 25, 2017 Spring Break 4/10 – 4/14 May 9, 2017 May 23, 2017 June 13, 2017 June 20, 2016 Council Retreat – Noon to 5 p.m. June 27, 2017 July 11, 2017 July 25, 2017 August 8, 2017 Summer Break 8/21 – 8/25 September 12, 2017 September 26, 2017 October 10, 2017 October 24, 2017 November 14, 2017 Thanksgiving Break 11/20 – 11/30 December 12, 2016 Holiday Break 12/20 – 01/02/2018 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Preston Neill, Executive Assistant to the Town Manager Date: January 10, 2017 Topic: Resolution 17-01 Designating Locations for Posting Notices of Public Meetings SUMMARY: C.R.S. Section 24-6-402(2)(c) requires that a municipality’s posting places must be designated at the first regular meeting of the calendar year as part of Colorado’s “Open Meetings Law.” Resolution 17- 01 is presented to satisfy this requirement whereby it identifies four public locations used for posting notices of Avon’s public meetings in addition to the Town’s website. RECOMMENDED MOTION: “I move to approve Resolution 17-01 Designating Locations for Posting Notices of Public Meetings.” ATTACHMENT: Resolution 17-01 TOWN OF AVON, COLORADO RESOLUTION 17-01 DESIGNATING THE LOCATIONS FOR POSTING THE NOTICES OF PUBLIC MEETINGS WHEREAS, Local Public Bodies, including the Avon Town Council, are required by Subsection 24-6-402 (2)(c) C.R.S., to designate annually at the Town Council’s first regular meeting of each calendar year, the place at which notice will be posted at least 24 hours prior to each meeting. NOW, THEREFORE BE IT RESOLVED BY THE AVON TOWN COUNCIL AS FOLLOWS: Notice of meetings of the Town Council required pursuant to Section 24-6-401, et seq., C.R.S. shall be posted within the boundaries of the Town at least 24 hours prior to each meeting at the following locations: Avon Town Hall, One Lake Street Avon Recreation Center, 90 Lake Street Avon Public Library, 200 Benchmark Road Avon Elementary School, 850 W Beaver Creek Boulevard Town of Avon website – www.avon.org ADOPTED January 10, 2017 AVON TOWN COUNCIL TOWN OF AVON, COLORADO _________________________ Jennie Fancher, Mayor Attest: ___________________________________ Debbie Hoppe, Town Clerk TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Danita Dempsey, Director of Festivals & Special Events Meeting Date: January 10, 2017 Agenda Topic: APPROVAL OF REQUEST TO EXPAND THE SPECIAL EVENT PRODUCTION ASSISTANT FROM A SEASONAL TO A FULL-TIME POSITION AND APPROVAL OF ADDITIONAL FUNDING FOR THE POSITION FROM THE 2017 GENERAL FUND CONTINGENCY LINE ITEM ACTION BEFORE COUNCIL: To review and approve, approve with changes or deny the Request to Expand the Special Event Production Assistant from a Seasonal to a Full-Time Position and Approval of Additional Funding for the Position from the 2017 General Fund Contingency Line Item. PROPOSED MOTION: I move to approve adding the position of Special Event Production Assistant and ending the seasonal part-time position currently approved in the 2017 General Fund budget and, appropriate $25,242.00 from the 2017 General Fund Contingency line item for the net salary and benefits cost increase. SUMMARY: The scope, budget development and implementation of the new event activations as identified and presented in Agenda Item 9.2 - 2017 Free Events Program and Requested Funding Support necessitates more staffing. Currently a seasonal part-time position is funded. This action will eliminate the seasonal position and employ a full-time assistant. TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Preston Neill, Executive Assistant to the Town Manager Date: January 10, 2017 Topic: Meeting Minutes SUMMARY: Council recently gave direction to Town staff to provide greater detail in the minutes of Council meetings. Therefore, the format has changed from “action” minutes to “summary” minutes. Staff researched how other municipalities, such as Vail and Silverthorne, draft and present their meeting minutes. Staff has decided that the Town of Silverthorne’s format is the most appropriate and will begin including a record of the main points of discussion. At the end of each set of meeting minutes, the following disclaimer will be included: “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, and the video of the meeting, which is available at www.highfivemedia.org.” TOWN OF AVON, COLORADO AVON MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET Page 1 1. A CALL TO ORDER & ROLL CALL Mayor Fancher called the meeting to order at 5:06 p.m. A roll call was taken and Council members present were Sarah Smith Hymes, Scott Prince, Jake Wolf, Amy Phillips and Megan Burch. Matt Gennett was absent. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Assistant Town Manager Scott Wright, Police Chief Greg Daly, Planning Director Matt Pielsticker, Fleet Director Rego Omerigic, Town Engineer Justin Hildreth, Executive Assistant to the Town Manager Preston Neill and Town Clerk Debbie Hoppe. 2. APPROVAL OF AGENDA Councilor Prince requested to move item 7.4, Resolution 16-33, Town of Avon Civil Liberties Protection to immediately following public comment. Mayor Fancher noted that several members of the public wanted to be present for this item. Since they were not present at the time, Mayor Fancher agreed to take on the item once the interested parties arrived. Councilor Wolf requested that all items, except 8.6, 8.7 and 8.8, be removed from the Consent Agenda. 3. PUBLIC COMMENT There were no public comments. 4. ACTION ITEMS START TIME: 00:07:30 4.1. Public Hearing and Action on Findings of Fact and Record of Decision for Major Development Plan and Alternative Equivalent Compliance Applications for Avon Hotel on Lot B Continued from the December 5, 2016 Town Council Special Meeting (Planning Director Matt Pielsticker) Councilor Gennett arrived at 5:55 p.m. Mayor Fancher opened the Public hearing. Tom Crosby with the Lodge at Avon Center spoke in favor of the Avon Hotel. Michael Cacioppo expressed his extreme concern with the parking situation. Councilor Prince moved to approve the Avon Town Council Findings of Fact and Record of Decision for Major Development Plan and Alternative Equivalent Compliance Applications for the Avon Hotel (Exhibit 1), thereby conditionally approving the Major Development Plan and Alternative Equivalent Compliance Applications for the Avon Hotel on Lot B. Town Attorney Eric Heil made a request that there was consent and support by the applicant to add a sixth condition of reaching consensus on the Shared Parking Access Agreement with the Points of Colorado property. Councilor Prince agreed to the addition. Councilor Phillips seconded the motion and it passed unanimously by those present. 4.2. Action on Resolution 16-39 Providing Funding to Treadstone Development LLC for the Construction of Certain Landscaping and Utility Improvements for the Avon Hotel (Planning Director Matt Pielsticker) TOWN OF AVON, COLORADO AVON MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET Page 2 Mayor Pro Tem Smith Hymes requested an edit to the packet on page 3 of 3, number 2a. She suggested that the number should be $40,000 not $400,000. Councilor Wolf moved to deny Resolution 16-39 thereby providing no funding for construction of certain landscaping and utility improvements for the Avon Hotel. Councilor Gennett offered an amendment to Councilor Wolf’s motion. The amendment was to deny the funding request for landscaping and approve the funding request for the Heart Recovery Pipe Extension, as a matter of good faith and also to demonstrate the Town does have a commitment to making a real change with regard to the climate action plan and the infrastructure the Town has in place. Councilor Wolf did not agree to the amendment of the motion. Councilor Wolf’s motion did not obtain a second, so the motion was not considered by the Council. Councilor Gennett moved to approve an amended version of Resolution 16-39, authorizing the transfer of $20,000 from the 2016 General Fund Contingency line item to the Buildings and Facilities budget for the purpose of engaging a professional engineer to study the capacity of the Heat Recovery system to verify there is excess capacity to serve the new Town Hall and the needs of the Avon Hotel project (Section 1 of Resolution). The motion also directed that a budget amendment be prepared to reimburse the General Fund from the 2017 Urban Renewal Fund, for consideration by the Urban Renewal Authority. Finally, the last part of the motion authorized $40,000 of funding for Heat Recovery utility improvements, subject to URA approval (Section 2 of Resolution), and removed the $40,000 funding request for landscaping improvements and the applicable "Whereas" statements. Mayor Pro Tem Smith Hymes seconded the motion and it passed on a 6 to 1 vote. Councilor Wolf voted no. Mayor Fancher moved to item 7.4, Action on Resolution 16-33, Town of Avon Civil Liberties Protection. 5. MOTION TO CONTINUE REGULAR MEETING FOR A MEETING OF THE URBAN RENEWAL AUTHORITY Mayor Fancher moved to continue the Regular Meeting. Councilor Gennett seconded the motion and it passed unanimously by those present. The time was 8:49 p.m. 6. CALL TO ORDER & ROLL CALL OF THE CONTINUED REGULAR MEETING Mayor Fancher called the meeting to order at 8:14 p.m. A roll call was taken and Council members present were Matt Gennett, Amy Phillips, Megan Burch, Jake Wolf, Scott Prince and Sarah Smith Hymes. 7. ACTION ITEMS 7.1. Action on Resolution 16-34, concerning the Avon Urban Renewal Authority’s Series 2017 Tax Increment Bonds, Authorizing the Town Manager to Request the Town Council Fund any Deficiencies in the Bond Account Pledged to the Payment of Such Bonds, and Authorizing the 2017 Cooperation Agreement (Assistant Town Manager Scott Wright) TOWN OF AVON, COLORADO AVON MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET Page 3 This item took place right after item 14.1. Councilor Phillips moved to approve Resolution No. 16-34, a Resolution concerning the Avon Urban Renewal Authority and its Tax Increment Revenue Bonds, Series 2017; authorizing and directing actions by the Town Manager with respect to the preparation of requests to the Town Council for appropriation of moneys to fund any deficiencies in the bond account pledged to the payment of such bonds; authorizing the 2017 Cooperation Agreement; and other actions taken by the Town in connection therewith. Councilor Burch seconded the motion and it passed on a vote of 5 to 1 vote. Mayor Fancher was absent. Councilor Wolf voted no. 7.2. Action on Resolution 16-35, Levying General Property Taxes for the Town of Avon for the 2017 Budget year (Assistant Town Manager Scott Wright) Councilor Burch moved to approve Resolution 16-35 and 16-36, adopting the 2016 Town of Avon General Operating and the Avon General Improvement District No. 1 mill levies. Councilor Gennett seconded the motion and it passed unanimously by those present. Mayor Fancher was absent. 7.3. Action on Resolution 16-36, levying General Property Taxes for the Avon General Improvement District No. 1 for the 2017 Budget year (Assistant Town Manager Scott Wright) 7.4. Action on Resolution 16-33, Town of Avon Civil Liberties Protection (Mayor Jennie Fancher) This item took place right after item 4.2. A correction was made to the Resolution by changing the word "citizens" to "persons." Steve Coyer commented, “We, as a community, need to take the position that we will not be a party to tearing families apart on the immigration issue. We have worked too hard to build a stable, mixed community to throw it away.” Steve Coyer also said, “My goal is to have our county and all of the government entities within it, state publicly that it/they will not be the enforcement agent for any new deportation efforts under the incoming federal administration. And that we will protect every law- abiding member of our community.” Michael Cacioppo stated that he does not want to see Avon become a sanctuary city. Councilor Burch moved to approve Resolution 16-33, Town of Avon Civil Liberties Protection. Councilor Smith Hymes seconded the motion and it passed unanimously by those present. 7.5. Action on Resolution 16-38, to Adopt the Climate Action Plan for the Eagle County Community (Mayor Pro Tem Sarah Smith Hymes) Mayor Pro Tem Sarah Smith Hymes presented the Climate Action Plan for the Eagle County Community and detailed how the document was developed. TOWN OF AVON, COLORADO AVON MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET Page 4 Councilor Gennett moved to approve Resolution 16-38, Adopting the Climate Action Plan for the Eagle County Community. Councilor Wolf seconded the motion and it passed unanimously by those present. Mayor Fancher was absent. 7.6. Approval of 2017 Regular Meeting Schedule (Town Clerk Debbie Hoppe) Councilor Gennett moved to approve the 2017 Regular Meeting Schedule as modified and presented. Councilor Wolf seconded the motion and it passed unanimously by those present. 7.7. Appointments to Boards, Commissions and Committees (Executive Assistant to the Town Manager Preston Neill) This item was continued to the “Goal Setting Retreat” slated for 3:00 p.m. on January 10, 2017. 8. CONSENT AGENDA 8.1. Approval of McMahan and Associates 2016 Audit Engagement Letter (Assistant Town Manager Scott Wright) After items 8.6, 8.7, and 8.8 were approved, Councilor Prince made a motion to put items 8.1 through 8.5 back onto the Consent Agenda. Councilor Phillips seconded the motion and it passed on a vote of 5 to 1. Councilor Wolf voted no. Mayor Fancher was absent. Council Gennett moved to approve the Consent Agenda (items 8.1 through 8.5). Councilor Prince seconded the motion and it passed on a 5 to 1 vote. Councilor Wolf voted no. Mayor Fancher was absent. 8.2. Approval to Appropriate Funds to Repair Avon Regional Transit Facility Garage Doors and HVAC Repairs from the 2016 General Fund Contingency Line Item (Town Engineer Justin Hildreth) 8.3.Approval of Resolution 16-31, Approving a Gas Line Easement for Xcel Energy on Tract G (Town Engineer Justin Hildreth) 8.4. Approval of Funding Request for the Adopt-A-Trail Program from the 2017 General Fund Contingency Line Item (Mayor Jennie Fancher) 8.5.Approval of the Appointment of the Members to the Historic Preservation Advisory Board (Mayor Jennie Fancher) 8.6. Approval of an Intergovernmental Agreement between the County of Eagle, State of Colorado, and the Town of Avon for the Provision of Animal Services (Police Chief Greg Daly) Items 8.6, 8.7 and 8.8 were acted on right after item 7.7. A motion was made to approve items 8.6, 8.7, and 8.8 on the Consent Agenda and it passed unanimously by those present. Mayor Fancher was absent. TOWN OF AVON, COLORADO AVON MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET Page 5 Councilor Wolf moved to approve item 8.6, 8.7 and 8.8 on the Consent Agenda. Councilor Prince seconded the motion and it passed unanimously by those present. Mayor Fancher was absent. 8.7. Approval of Member Agency Joinder Agreement to the Services Agreement for a Law Enforcement Data Warehouse (Police Chief Greg Daly) 8.8. Approval of the Colorado Information Sharing Consortium Payment Intergovernmental Agreement (Police Chief Greg Daly) 8.9. Approval of the November 15, 2016 Regular Meeting Minutes (Town Clerk Debbie Hoppe) This item took place after the approval of items 8.1 through 8.5. Councilor Gennett moved to approve the November 15, 2016, Regular Meeting Minutes. Councilor Prince seconded the motion and it passed on a 4 to 1 vote. Councilor Wolf voted no. Councilor Phillips abstained from the vote. Mayor Fancher was absent. 8.10. Approval of the November 17, 2016 Special Meeting Minutes (Assistant to the Town Manager Preston Neill) Councilor Prince moved to approve the November 17, 2016, Special Meeting Minutes. Councilor Burch seconded the motion and it passed on a 4 to 1 vote. Councilor Wolf voted no. Councilor Phillips abstained from the vote. Mayor Fancher was absent. Councilor Wolf asked where the High 5 Access Media recording of the November 17, 2016, meeting is. Councilor Wolf left the meeting at 10:17 p.m. Michael Cacioppo stated that JK Perry, Executive Director of High Five Access Media, will not send out public notices for board meetings. 8.11. Approval of the December 5, 2016 Special Meeting Minutes (Town Clerk Debbie Hoppe) Councilor Phillips moved to approve the December 5, 2016, Special Meeting Minutes. Councilor Prince seconded the motion and it passed on a 3 to 0 vote. Councilor Burch and Councilor Gennett abstained from the vote. Mayor Fancher and Councilor Wolf were absent. 9. WRITTEN REPORTS 9.1. Gift Reporting – Beaver Creek Parking Passes & Birds of Prey Gift Bags (Executive Assistant to the Town Manager Preston Neill) 10. COMMITTEE MEETING UPDATES: COUNCILORS AND MAYOR 11. MAYOR & COUNCIL COMMENTS 12. TOWN MANAGER UPDATE TOWN OF AVON, COLORADO AVON MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET Page 6 13. Executive Session 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) as well as a Conference with the Town Attorney for the Purpose of Receiving Legal Advice under C.R.S. §24-6-402(2)(B) Concerning Negotiations Regarding a Deed of Easement – Northside Parcels This item took place during Open Session in conjunction with item 14.1. 14. ACTION ITEMS 14.1. Action on Resolution 16-37, providing a Deed of Conservation Easement – Avon Northside (Town Attorney Eric Heil) This item took place right after the Council reconvened into the Regular meeting after the URA meeting. Markian Feduschak, President of Walking Mountains Science Center, and Toby Sprunk, Open Space Director for Eagle County, updated the Council on the proposed Conservation Easement. Michael Cacioppo asked Council what consideration the Town tax payer receives from this transaction. Phil Brodsky expressed how he believes the Walking Mountains Science Center is a treasure and asset to the Town of Avon. This item was tabled and direction was provided for the elected officials and necessary Town staff members, including the Town Attorney, to negotiate directly with Eagle County in an attempt to reach terms that will allow this to move forward. Mayor Fancher left the meeting at 9:55 p.m. 14.2. Action on a Consent and Subordination Agreement as it Pertains to a Deed of Conservation Easement – Lot 1B, Buck Creek Subdivision (Town Attorney Eric Heil) This item took place right after the approval of item 8.11. Councilor Phillips moved to approve the Consent and Subordination Agreement as presented. Councilor Gennett seconded the motion and it passed on a 4 to 0 vote. Councilor Prince was out of the room. Mayor Fancher and Councilor Wolf were absent. 15. Adjournment There being no further business to come before the Council, the regular meeting adjourned at 10:24 p.m. 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 TOWN OF AVON, COLORADO AVON MEETING MINUTES FOR TUESDAY, DECEMBER 13, 2016 AVON TOWN HALL, ONE LAKE STREET Page 7 most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk’s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: ______________________________________________ Debbie Hoppe, Town Clerk APPROVED: Jennie Fancher ________________________________ Jake Wolf ________________________________ Matt Gennett ________________________________ Megan Burch ________________________________ Amy Phillips ________________________________ Scott Prince ________________________________ Sarah Smith Hymes ________________________________ TOWN OF AVON, COLORADO AVON SPECIAL MEETING MINUTES FOR TUESDAY, DECEMBER 20, 2016 AVON TOWN HALL, ONE LAKE STREET Page 1 1. A CALL TO ORDER & ROLL CALL Mayor Pro Tem Sarah Smith Hymes called the meeting to order at 5:00 p.m. A roll call was taken and Council members present were Scott Prince, Amy Phillips and Megan Burch. Mayor Jennie Fancher was remotely present, via conference phone. Council members Matt Gennett and Jake Wolf were absent. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Assistant Town Manager Scott Wright, Police Chief Greg Daly, Planning Director Matt Pielsticker and Executive Assistant to the Town Manager Preston Neill. 2. APPROVAL OF AGENDA No changes to the agenda were requested. 3. PUBLIC COMMENT Councilor Wolf joined the meeting at 5:05 p.m. Joe Shankland, an Avon resident, commented on the Town’s transit system. He made several suggestions to improve the Skier Express Shuttle route. In addition, he urged the Council to solicit public input on expanding or amending the Skier Express Shuttle route to include stops along West Beaver Creek Boulevard. Town Manager Virginia Egger explained Town staff’s intention to survey residents in Wildridge and along West Beaver Creek Boulevard in order to gauge opinion on the Town’s transit system and what changes, if any, they would like to see made. Councilor Prince recommended staff come up with alternatives, rather than move forward with any surveys. Town Manager Virginia Egger then provided a few ideas and said staff will begin identifying objectives and strategies for 2017 transit pilot programs. Moreover, she said an update will be provided to Council at the January 10th Town Council meeting. 4. ACTION ITEMS 4.1. ACTION ON RESOLUTION 16-37, GRANTING A DEED OF CONSERVATION EASEMENT – AVON NORTHSIDE PARCELS (TOWN ATTORNEY ERIC HEIL) Town Attorney Eric Heil presented the proposed revisions to the Deed of Conservation Easement and the accompanying Resolution 16-37. Councilor Wolf left the meeting at 5:44 p.m. but joined the meeting via conference phone. Phil Brodsky, an Avon resident, commended the Town Council for meeting with the Eagle County Commissioners and thanked them for their work in getting the Conservation Easement to move forward. Markian Feduschak, President of Walking Mountains Science Center, also expressed his appreciation for the Town Council’s work on the Conservation Easement and thanked them for looking out for the best interests of their constituents. TOWN OF AVON, COLORADO AVON SPECIAL MEETING MINUTES FOR TUESDAY, DECEMBER 20, 2016 AVON TOWN HALL, ONE LAKE STREET Page 2 Councilor Burch moved to approve Resolution 16-37, granting a Deed of Conservation Easement for the Avon Northside Parcels. Councilor Phillips seconded the motion and it passed unanimously by those present. Councilor Gennett was absent, and Mayor Fancher and Councilor Wolf were remotely present, via conference phone. 7. ADJOURNMENT There being no further business to come before the Council, Councilor Phillips moved to adjourn the regular meeting. Councilor Burch seconded the motion and it passed unanimously by those present. Councilor Gennett was absent, and Mayor Fancher and Councilor Wolf were remotely present, via conference phone. The time was 5:59 p.m. 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, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: ______________________________________________ Preston Neill, Executive Assistant to the Town Manager APPROVED: Jennie Fancher ________________________________ Jake Wolf ________________________________ Matt Gennett ________________________________ Megan Burch ________________________________ Amy Phillips ________________________________ Scott Prince ________________________________ Sarah Smith Hymes ________________________________ TOWN COUNCIL REPORT To: Avon Town Council From: Virginia C. Egger, Town Manager Meeting Date: January 10, 2017 Topic: 2017 Winter Pilot Program for Transit Services Pilot Program for Transit Services: Total Budget: $50,000 Our staff working group has identified the following objectives and strategies for the pilot programs. Rolling implementation is planned for the period January 17th – April 2nd. No changes are planned for the Restaurant Shuttle, which already provides for deviated loop service. Councilor Amy Phillips has recommended that Town Council review these pilot ideas at one of your January meetings. As such, it has been added to this meeting’s Written Reports, should Amy or any member of Council wish to discuss at the meeting, as that would be an opportune time. OBJECTIVE: Improve Skier Shuttle (SS) connections with Red and Blue (R/B) Lines and expand service - Strategies: - Ensure R/B drivers, who observe riders getting on with ski equipment, call the next SS to wait - Allow SS deviated loops between 11:21 a.m. and 2:00 p.m. on BC return buses, when requested by a rider - Allow SS deviated loop on 5:00 and 5:30 p.m. BC return buses, when requested by a rider - Cost: Small marginal cost for fuel when deviated loop operated OBJECTIVE: Provide greater in-town bus service to meet early evening demand - Strategy: Provide 30-minue service from 6:00 p.m. to 8:00 p.m. - Cost: In the process of being determined OBJECTIVE: Provide transit services to areas not served by the R/B - Strategies: - Implement with one or more local taxi services a contract for services with a determined retainer and number of rides - On-demand – Weekend rides will be from Nottingham Road, Wildridge and Hurd Lane with pick-up at Town parking lots or bus shelters with drop-off at Avon Transit Center ; same hours as R/B lines - Rides throughout Town from 8:00 p.m. to 11:30 p.m. Pick-up at bus shelters and public parking lots with drop-off at the same. Safe pull-off for Nottingham Road may be private driveways. - We have done outreach to Breckenridge and Squaw Valley, which have implemented recently on demand point-to-point free service. - Cost: Staff expects to meet with taxi companies in the next 10 business days; we will then determine how to procure under the Town’s procurement policy; and then, upon selection, contract for services. Estimated date to begin on-demand service is February 4th. WRITTEN REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Preston Neill, Executive Assistant to the Town Manager Meeting Date: January 10, 2017 Topic: Purchase and Use Policy for Town Council Tablets Update At the December 12, 2016, Council Retreat, Council supported packets being delivered electronically to go “paperless”. The Council agreed that Council members, if he or she desires, should be provided a device to access the electronic Council packet, check Town email and search the Internet, at Town cost. A 120-day time frame for this transition was targeted, which puts the latest date to approve a budget appropriation, purchase and set up devices and adopt a Use Policy at April 1, 2017. The Town’s IT staff has concluded their research of three municipalities, which included Silverthorne, Eagle and Vail, in terms of providing a device to elected officials. Staff believes the Town of Vail’s approach is the most appropriate. • The Town of Vail purchases Apple iPads for all Council members, but the Town maintains ownership of the iPads. Also purchased and installed is the “iAnnotate PDF” application, which allows Council members to make notes on the PDF packets. • The recommended device for Council use is an Apple 9.7 inch iPad Pro – 32 GB, at a price of $599.00 per device. The cost of the “iAnnotate PDF” software is $9.99 per device. Those who would like to receive the device and software described above should let me by Wednesday, January 18th, 5:00 pm. For the January 24th Council Meeting, Council will be asked to review and take action on the Use Policy and budget amendment for the number of devices requested. Please note the funds for the purchase of the device(s) and software will be appropriated from the General Fund Contingency line item. TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Virginia C. Egger, Town Manager Meeting Date: January 10, 2017 Topic: UERWA Summary - DRAFT OVERVIEW: Mayor Pro Tem Sarah Smith Hymes, who serves as the Town’s primary representative on the UERWA Board, has asked that the meeting summaries, which she receives be shared with the Town Council. The UERWA has agreed the meeting summaries may be made available. As the summaries become final, distribution will be again through Written Reports. M E M O R A N D U M TO: Board of Directors FROM: Catherine Hayes, Board Secretary DATE: December 29, 2016 RE: Summary of Authority December 15, 2016, Regular Board Meeting The following is a summary of items discussed at the December 15, 2016, Authority Board Meeting: Regional Water Efficiency Plan John McCaulley discussed a request to approve the drafting of a regional water efficiency plan with the Eagle River Water & Sanitation District. He explained the administrative and operational efficiencies that could be achieved with a regional plan. He also noted staff would apply for a Colorado Water Conservation Board (CWCB) grant for the plan’s formation and said the CWCB looks favorably on regional plans. Hotel Approved in Avon Secretary Sarah Smith Hymes said the town of Avon recently approved a developer’s plan to place a hotel in the center of Avon, in what is currently the parking lot for Bob’s Place and the Avon Annex. Lead and Copper Sampling Linn Brooks summarized the Authority’s required testing in customer homes for lead and copper and said the 2016 results remained low or non-detected, with individual results reported to each sampling program participant. With the EPA’s increased focus on lead, regulations are evolving, which led to some required language being inadvertently omitted from the letters to customers. This could result in a violation. Staff will remedy the customer notification and inform state regulators. Ms. Brooks proposed, and the Board agreed, to increased public outreach about lead in drinking water. The sampling frequency for lead and copper will increase from the current once every three years to at least annually; Ms. Brooks informed the Board that this increase may require an additional employee. Gore Creek Hotline Diane Johnson informed the Board of the town of Vail’s newly established hotline, 970-476-GORE (4673), to anonymously report suspected spills or potential hazards to Gore Creek. Such events can be reported 24/7 and will be received by the town’s environmental sustainability office during business hours and directed to the Vail Police department afterhours. Mountain Star Tank Ribbon Cutting Diane Johnson said the Dec. 8 ribbon-cutting event to celebrate the completion of Mountain Star Tank 5 was well attended and thanked involved Board, staff, and community members. Drought and Lakes Powell and Mead The Board discussed the most recent graph of Lake Mead, water levels in which continue to decline, making additional drought years more difficult to weather. Staff noted Lake Powell was last full in 1999, and this was largely why the 2003/2004 drought was successfully endured. Lake Powell’s level has increased slightly in recent years due to above-average total water generated in its watershed. Current conditions are concerning for a variety of reasons, especially as lower basin states, including California, continue to use more water than their allocation of water per the Colorado River Compact. Traer Creek Update Jim Collins summarized recent developments with Traer Creek related to the 2015 tank failure. Per the court’s request, the Authority served all involved parties with a Summary of Authority December 15, 2016, Regular Board Meeting motion to join the proceedings. Jim noted the Authority’s issue continues to be the two-year warranty, for which it believes Traer Creek is liable. Jim recommended getting all parties together to effectively communicate the Authority’s position and understand whether mediation efforts would be fruitful. The Board directed staff to facilitate such a meeting. Traer Creek Tank Reconstruction Jason Cowles noted a draft request for proposal was prepared by staff to solicit engineers for a redesign of the tank, per the integrated project delivery resolution approved by the board at its Nov. 17 meeting. He expects tank removal to commence in spring/summer 2017. Cordillera Metro District Surcharge Analysis Jim Collins and Jason Cowles discussed communication with Cordillera regarding its surcharge to its customers. Cordillera will continue to collect the charge, as the area may need to purchase additional water rights in the future. Cordillera also proposed some additional water system projects for which the surcharge funds could be used. Mr. Porzak suggested staff prepare a presentation for the Board regarding the history of the Cordillera development and its relationship with the Authority. Tap Fee Policy for Public Use Facilities Jim Collins discussed the Authority and District’s tap fee policy for public use facilities. The Board reaffirmed the policy, which allows financing of tap fees for public use facilities for up to ten years. Per the policy, the Authority and District will not waive the fees, as such facilities have a measurable impact on the system and both entities have a “growth pays for growth” philosophy. Staff also noted the fees are based on square footage; thus, smaller units pay lower fees. Eagle River Meadows Development Glenn Porzak discussed the estimated water demand for the Eagle River Meadows development. The development would have to augment 100% of diversions during certain times of year. Glenn discussed the potential for a modified pumpback to free up Eagle Park Reservoir water, effectively expanding the Authority’s unallocated in- basin water supply, as well as possible cost and funding scenarios. The Board authorized staff to facilitate a study on the pumpback. Water Rights Appraisals Glenn Porzak discussed the most recent water rights appraisals for the Authority and District of approximately $50 million and $49 million, respectively. Colorado River Compact Glenn Porzak discussed the State Engineer’s recently submitted draft rules regarding compliance with the Republican River Compact. He noted the draft rules do not exclude pre-Compact water rights and do not administer post-Compact rights according to the priority system. He suggested the Authority and District work with the River District to oppose the rules, as they could set an adverse precedent for future State Engineer rules governing the administration of the Colorado River Compact. Eagle River MOU Projects Glenn Porzak discussed a recent Colorado Supreme Court ruling, which will prevent Aurora and Colorado Springs from expanding the use of existing Homestake Reservoir transmountain diversions by storing those diversions in new east slope storage facilities. He also noted this makes the Eagle River MOU projects even more important to the East Slope stakeholders. TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Virginia C. Egger, Town Manager Meeting Date: January 10, 2017 Topic: The Mountain Pact Newsletter OVERVIEW: Mayor Pro Tem Sarah Smith Hymes has asked that the following newsletter be provided to Council. The Mountain Pact is a nonprofit which brings mountain communities together to engage around climate change policy and advocacy. Big News for Mountain Communities: President Obama Signs the Outdoor REC Act Today President Obama signed the Outdoor Recreation Jobs and Economic Impact Act ('Outdoor REC Act), just weeks after the House and Senate passed it with unanimous, bipartisan support. The Outdoor REC Act directs the Department of Commerce (via the Bureau of Economic Analysis) to coordinate with the Department of Agriculture and the Department of the Interior to measure the outdoor recreation economy's contribution to the overall U.S. economy (i.e. Gross Domestic Product). The U.S. government measures the role of other sectors - like the arts, oil and gas, and manufacturing - but prior to the Outdoor REC Act, it did not include outdoor recreation as a part of Gross Domestic Product reports. The outdoor economy has been estimated to contribute $646 billion to the US economy with 6.1 million direct Americans jobs - almost equal to pharmaceuticals and motor vehicles and parts combined. This is a fortunate turn of events for our mountain communities, whose economies are inextricably linked to outdoor recreation and tourism. The Outdoor REC Act is an important first step toward better understanding and accounting for this powerful and growing economic sector. Once the federal government fully recognizes and records the economic benefits of outdoor recreation, communities dependent on outdoor recreation and surrounded by public lands will gain significant leverage in urging the government to invest in the maintenance of the land and water resources on which the outdoor industry relies. This is especially important given the great challenges we face in the work of mitigating environmental degradation from climate change and irresponsible development, and given the ongoing challenge of securing adequate public investment to provide sustainable, high-quality outdoor recreation infrastructure that enables access without compromising the landscape. This shift will unlock new opportunities for both environmental conservation and economic growth in the Intermountain West. The Mountain Pact is launching an effort to thank Congress and President Obama for their leadership on this issue. We'll be reaching out to you in the coming week with more information and opportunities to engage - stay tuned! www.themountainpact.org | info@themountainpact.org