The URL can be used to link to this page

TC Packet 05-08-2018 TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, MAY 8, 2018 AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 4:30 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 & AVON ELEMENTARY SCHOOL 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 OPTIONAL SITE TOUR PLANNING AREA F - 3:45 – 4:15 PM VILLAGE AT AVON PRELIMINARY PUD APPLICATION PARK ALONG THE NORTH SIDE OF E BEAVER CREEK BOULEVARD AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 4:30 PM (SEE AGENDA BELOW) AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 5:00 PM (SEE SEPARATE AGENDA PAGE 3) 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. MEETING PROCEDURES FOR THE MEETING OF MAY 8, 2018 ACTION ITEMS • PRESENTATION OF ITEM • PUBLIC COMMENT * • COUNCIL DISCUSSION • MOTION • COUNCIL DISCUSSION • VOTE WORK SESSION AND PRESENTATIONS • PRESENTATION OF ITEM • COUNCIL DISCUSSION • PUBLIC COMMENT* • COUNCIL DIRECTION 4. PRESENTATION 4.1. EAGLE RIVER FIRE PROTECTION DISTRICT PRESENTATION (KARL BAUER, ERFPD FIRE CHIEF) (30 MINUTES) 4.1.1. CURRENT ASSESSMENT OF GENERAL PREPAREDNESS FOR WILDFIRES 4.1.2. DECLARATION PROCESS AND PROCEDURES LIQUOR LICENSE AUTHORITY MEETING 5. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA * AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL. 6. ACTION ITEM 6.1. PUBLIC HEARING: REVIEW AND ACTION ON PRELIMINARY PUD APPLICATION, PLANNING AREA F, VILLAGE AT AVON PUD (PLANNING DIRECTOR MATT PIELSTICKER) (60 MINUTES) 7. WORK SESSION 7.1. PRESENTATION OF THE EAGLE RIVER VALLEY HOUSING NEEDS AND SOLUTIONS 2018 REPORT (EAGLE COUNTY HOUSING DIRECTOR KIM BELL WILLIAMS) (20 MINUTES) 7.2. REVIEW AND DIRECTION FOR FINALIZING THE TOWN OF AVON WORKFORCE HOUSING PLAN (PLANNING DIRECTOR MATT PIELSTICKER) (40 MINUTES) TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, MAY 8, 2018 AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 4:30 PM AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 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 & AVON ELEMENTARY SCHOOL 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 8. ACTION ITEMS 8.1. PUBLIC HEARING: FIRST READING OF ORDINANCE 18-05, REVIEW AND ACTION ON THE REZONING APPLICATION FOR THE FOLSON ANNEXATION PROPERTY, FROM PLANNED UNIT DEVELOPMENT TO THE RESIDENTIAL HIGH DENSITY, OPEN SPACE, LANDSCAPING, AND DRAINAGE, AND SHORT TERM RENTAL OVERLAY ZONE DISTRICTS (PLANNING DIRECTOR MATT PIELSTICKER) (15 MINUTES) 8.2. REVIEW AND RECOMMENDATION REGARDING MOTORIZED WINTER ACCESS ON USFS 779, 774 AND/OR 717.1B (PLANNING DIRECTOR MATT PIELSTICKER) (25 MINUTES) 8.3. PUBLIC HEARING: REVIEW AND ACTION ON AN APPEAL OF A DENIAL OF A REAL ESTATE TRANSFER TAX APPLICATION (TOWN ATTORNEY ERIC HEIL) (15 MINUTES) 8.4. AUTHORIZATION TO APPROPRIATE UP TO $15,000 FROM THE TOWN PROPERTIES CONTINGENCY LINE ITEM IN THE CAPITAL PROJECTS FUND BUDGET FOR LOT 5 RECYCLE CENTER PLANNING AND DESIGN SERVICES (DEPUTY TOWN MANAGER PRESTON NEILL) (10 MINUTES) 8.5. ACTION ON A REQUEST TO APPROPRIATE $21,000 FROM THE CONTINGENCY LINE ITEM IN THE GENERAL FUND BUDGET FOR THE PRESENTING SPONSORSHIP OF THE LAKE STREET MARKET – A WEEKLY EVENING MARKET FROM JUNE 20 TO SEPTEMBER 12 (INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) (15 MINUTES) 8.6. APPROVAL OF MINUTES FROM APRIL 10, 2018 COUNCIL MEETING (TOWN CLERK DEBBIE HOPPE) (5 MINUTES) 9. WRITTEN REPORTS 9.1. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT MARTHA ANDERSON) 9.2. ABSTRACT FROM MAY 1, 2018 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) 10. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) 11. EXECUTIVE SESSION (40 MINUTES) 11.1 EXECUTIVE SESSION WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE UNDER C.R.S. §24- 6-402(2) (A) CONCERNING POTENTIAL LIABILITY 11.2 EXECUTIVE SESSION REGARDING A PERSONNEL MATTER UNDER C.R.S. §24-6-402(2) (F) CONCERNING THE TOWN MANAGER’S ANNUAL PERFORMANCE EVALUATION 12. ADJOURNMENT _________________________________________________________________________________________________________________________________________________________________________________________________________ *Public Comments: Council agendas shall include a general item labeled “Public Comment” near the beginning of all Council meetings. Members of the public who wish to provide comments to Council greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Council in advance of the Council meeting. The Mayor shall permit public comments for any action item or work session item, and may permit public comment for any other agenda item, and may limit such public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. Article VI. Public Comments, Avon Town Council Simplified Rules of Order, Adopted by Resolution No. 17-05. TOWN OF AVON MEETINGS FOR TUESDAY, MAY 8, 2018 AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 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 & AVON ELEMENTARY SCHOOL 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. PUBLIC HEARING SPECIAL EVENTS PERMIT 4.1. APPLICANT NAME: TOWN OF AVON EVENT NAME: POP UP PERFORMANCES EVENT DATES: MAY 28, 2018, JUNE 26, 2018, JULY 4, 2018 AND AUGUST 25, 2018; 5:00 P.M. UNTIL 7:00 P.M. LOCATION: PERFORMANCE PAVILION/ NOTTINGHAM PARK EVENT MANAGER: LOUISE DUNCAN PERMIT TYPE: MALT, VINOUS & SPIRITUOUS LIQUOR 5. RENEWAL OF LIQUOR LICENSES 5.1. APPLICANT: EAST WEST RESORTS LLC & AVON RIVERFRONT LLC D/B/ A WESTIN RIVERFRONT RESORT & SPA & MAYA LOCATION: 126 RIVERFRONT LANE TYPE: RESORT COMPLEX LICENSE MANAGER: KRISTEN PRYOR 5.2. APPLICANT: BENCHMARK LIQUORS, INC. D/B/A BEAVER LIQUORS LOCATION: 110 E. BEAVER CREEK BLVD. TYPE: LIQUOR STORE MANAGER: DAVID COURTNEY 5.3. APPLICANT: WALMART STORES, INC. D/B/A WALMART #119 LOCATION: 171 YODER AVENUE TYPE: 3.2% BEER OFF PREMISES MANAGER: SAMUEL POTHIER 6. APPROVAL OF THE MINUTES FROM APRIL 10, 2018 MEETING 7. ADJOURNMENT Page 1 of 1 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Greg Daly, Chief of Police Meeting Date: May 8, 2018 Agenda Topic: Wildridge Emergency Preparedness Presentation SUMMARY Chief Karl Bauer (Eagle River Fire Protection District), Community Risk/PIO Traci LeClair, Chief Greg Daly and Wildfire Mitigation Specialist Jeff Zechman will provide a presentation to the Town Council to discuss the following items: • Current assessment of general preparedness for Wildfire in the Wildridge Subdivision • Evacuation procedures for Wildridge to include notification, media & PIO processes • Declaration processes and procedures ATTACHMENT PowerPoint presentation from Eagle River Fire Protection District Wildfire Outlook &Mitigation 2018 2018 Wildfire SeasonPredictive Services •Above average fire season in the central-southern portion of Colorado •Core fire season (June-August) acres burned has not been above average since 2012. •Continued drought with persistent warm and dry forecasts overall. •Increase in moisture from the southwest monsoon is predicted to moderate large fire risk closer to average during July and August across central to southern Colorado. 2018 Wildfire SeasonPredictiveServices Home Ignition Zone Assessments Operational Information GIS Solutions District Mapping •Risk •Operational Indicators •Safety Dashboard •Information/Incident Management Survey Go to demo of Dashboard CWPP Update •New look •Streamlined •Interactive •Monthly/Yearly updates Local Mutual Aid •Mutual aid exists between all the fire protection agencies of Eagle County •Mutual aid also exists between fire protection agencies of Eagle County and those of adjacent Counties Mutual Aid Period •Per the Annual Operating Plan, the Mutual Aid period is defined as: •Not exceeding 24 hours; and, •Ending at midnight of the burn period when the IC determines that the fire cannot be controlled within 24 hours of ignition County-State Mutual Aid •State mutual aid resources, when positioned within UCR, include: •Engines •Helicopters •MMA County-Federal Mutual Aid •Per the Annual Operating Plan (AOP), mutual aid exists between the County/local fire protection agencies and federal fire agencies •USFS •BLM County-Federal Mutual Aid •Federal mutual resources include: •BLM Helicopter stationed at Rifle •Local UCR engines •Severity resources Accessing Non-Mutual Aid Resources •All IC’s have authority to order needed resources, including air assets that are not considered mutual aid •Accessing State Emergency Fire Fund includes: •Delegation to County •Delegation to State of Colorado •Large-scale incidents may qualify for Fire Management Assistance Grants (FMAG) TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, APRIL 10, 2018 AVON TOWN HALL, ONE LAKE STREET Page 1 1. CALL TO ORDER AND ROLL CALL Chairwoman Fancher called the meeting to order at 5:00 p.m. A roll call was taken and Board members present were Amy Phillips, Sarah Smith Hymes, Scott Prince, Megan Burch, and Matt Gennett. Jake Wolf was absent. Also present were Town Attorney Eric Heil, Police Chief Greg Daly, Recreation Director John Curutchet, Planning Director Matt Pielsticker, Public Works Director Gary Padilla, Deputy Town Manager Preston Neill and Secretary 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. PUBLIC HEARING FOR NEW HOTEL AND RESTAURANT LIQUOR LICENSE Start time: 36:26 Part One 4.1. Applicant Name: Sabor Mazatlan, Inc. d/b/a Sabor Mazatlan Location: 150 E. Beaver Creek Blvd. #A-101 Type: Hotel and Restaurant Liquor License Manager: Jose Fortino Garcia Garbay Action: Resolution No. 18-03 Chairwoman Fancher opened the public hearing and no comments were made. Jose Fortino Garcia Garbay was present to answer any questions. Board member Burch moved to approve Resolution No. 18-03 for the new hotel and restaurant liquor license for Sabor Mazatlan, Inc. d/b/a Sabor Mazatlan. Vice Chairwoman Smith Hymes seconded the motion and it passed unanimously by Board members present. Board member Wolf was absent. 5. APPROVAL OF THE MINUTES FROM MARCH 27, 2018 MEETING Start time: 38:40 Part One Board member Gennett moved to approve the minutes from the March 27, 2018, Liquor Authority meeting. Board member Burch seconded the motion and it passed unanimously by Board members present. Board member Wolf was absent. TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, APRIL 10, 2018 AVON TOWN HALL, ONE LAKE STREET Page 2 6. ADJOURNMENT There being no further business to come before the Board, Chairwoman Fancher moved to adjourn the liquor meeting. Board member Phillips seconded the motion and it passed unanimously by Board members present. Board member Wolf was absent. The time was 5:10 p.m. RESPECTFULLY SUBMITTED: ____________________________________ Debbie Hoppe, Secretary APPROVED: Jennie Fancher ______________________________________ Sarah Smith Hymes ______________________________________ Jake Wolf ______________________________________ Megan Burch ______________________________________ Matt Gennett ______________________________________ Scott Prince ______________________________________ Amy Phillips ______________________________________ The Village (at Avon) Preliminary PUD Amendment – File #PUD17001 1 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Matt Pielsticker, AICP, Planning Director Meeting Date: May 8, 2018 Topic: PUBLIC HEARING: REVIEW AND ACTION ON PRELIMINARY PUD APPLICATION, PLANNING AREA F, VILLAGE AT AVON PUD ACTION BEFORE COUNCIL Action on Preliminary Planned Unit Development (PUD) amendment land use application (ATTACHMENT A) for Planning Area F, Village (at Avon) PUD. OPTIONS • Conduct Public Hearing and take action on Findings and Record of Decision as drafted, approving the application with conditions to be addressed by Final PUD – ATTACHMENT B. • Conduct Public Hearing and take action on Findings and Record of Decision approving the application, with modifications to ATTACHMENT B. • Conduct Public Hearing and direct staff to prepare findings and Record of Decision denying the application. • Conduct Public Hearing and continue to a future meeting, pending additional information. SUMMARY At the April 10, 2018 meeting the Council took two actions regarding the application: 1) Finding of Substantial Compliance with the Public Notice Requirements. - Public notice requirements of the Avon Development Code were documented. - There were no defects found in the notice process. 2) Continuance of the Public Hearing for the applicant to respond to comments, and for staff to draft a record of decision. - The application has been updated pursuant to comments received, including changes to Building Height, Density Reduction, and Commercial square footage requirements. – see ATTACHMENT A. - Staff drafted a document for action by Council to memorialize the changes, and provide direction to the Applicant for a Final PUD application. PZC REVIEW After several public hearings, the PZC recommended conditional approval of the Application. With full support of the density increase and building height increase, the Commission recommended a 10% minimum commercial square footage for Planning are F. Additionally, PZC recommended a condition to ensure a continuous Right-of-Way width that incorporates streetscape and multi-modal elements The Village (at Avon) Preliminary PUD Amendment – File #PUD17001 2 planned elsewhere in Town. See ATTACHMENT E for all PZC materials and Staff’s analysis of the mandatory review criteria. RIGHT-OF-WAY According to the existing Village (at Avon) PUD Guide (ATTACHMENT C), the standards call for a minimum 50’ ROW for the road segment abutting the southern property line of Planning Area F. To meet the PZC condition, and corresponding Town road standards, the drafted Record of Decision includes a minimum 78’ ROW, if density exceeds 18 Dwelling Units per acre. The Town’s road standards are governed by Development Code Section 7.32.030, Streets, and cross reference standards in various design manuals, including but not limited to the American Association of State Highway Transportation Officials (AASHTO). In combination with AASHTO standards and other Town project designs, including West Beaver Creek Boulevard, the 78’ ROW is based upon the following components: 2-11’ Foot wide vehicle travel lanes 2-4’ foot wide bike lanes 2-6’ foot wide sidewalks 2-6’ landscape zones 2-12’ bus pullouts/parallel parking - includes possibility for on-street parking opposite bus pullout, or on-street parking both sides In addition to the above components, staff recommends that an area at least 16’x10’ be reserved to accommodate a bus stop shelter with bicycle racks. This dimension is based upon the Town standard 10’ wide x 7’ deep shelter, with adjacent bicycle rack, and perimeter maintenance area. Road crossing(s) would also be evaluated at the time a road design is submitted for review. The trigger for ROW dedication would follow the zoning approval, and be conducted at the time of a Subdivision application. When a Subdivision is submitted it includes engineered drawings and a Subdivision Improvements Agreement (SIA). The zoning documents require the extension of streets adjacent to development only to the point necessary to serve the development. The above-mentioned elements have been incorporated into the draft Findings of Fact and Record of Decision. ATTACHMENTS A – Amended Application, Dated April 27, 2018 B - Findings of Fact and Record of Decision C – Current PUD Guide and Master Plan Map D – Written Public Comments E – PZC Decision & staff report from March 6, 2018 Meeting 1 April 27, 2018 Town Council Matt Pielsticker, AICP Planning Director Town of Avon 1 Lake Street Avon, CO 81620 Re: PUD 17001 - Village at Avon Planning Area F Amendment Dear Avon Town Council: This letter is intended as an update and amendment to our application for a preliminary PUD amendment to Planning Area F, in The Village (at Avon). Below are a list of additional changes and some discussion of each, which we believe address issues raised by a majority of the Town Council members present at the hearing on April 10, 2018. We hope that our revisions will allow the Town Council to approve this amendment and allow us to start the process over again with a Final PUD Application where we can provide more detail and final refinements to the proposal. Building Height. The initial proposal by the applicant, based on information from a potential developer, was to increase the allowable building height from 48’ to 66’. Based on further analysis the applicant modified the proposal to increase the building height to 58’, a 10’ increase, along with two other proposed mitigating standards: • New Setback: A proposed building setback of 40’ from Post Boulevard and East Beaver Creek Boulevard for any structure taller than 48’. The current setback is 25’. This was to address the issue of taller buildings crowding the street. • New Building Coverage Standard: A new standard changing the building coverage/building footprint standard from 80% of the site to 50% of the site. The provision addressed the site being overcrowded with buildings and applies to all buildings on the property regardless of height. The Planning and Zoning Commission also recommended a building height of 58’ with these added mitigating measures. Town Council Concerns: Several Town Council members expressed concern about the impact of taller buildings as a transition from the southern boundary of the PUD to the northern boundary of Planning Area F but noting that the tall hillside leading to the interstate provides some relief to the height. ATTACHMENT A 2 Revised Proposal: To address the concerns, the applicant is proposing a 100’ setback from the south boundary of Planning Area F for any building over 48’. This ensures that there will be a transition of building heights across Planning Area F to address the concern. Additionally, the applicant is proposing that buildings be limited to four (4) total stories above grade to assure that the added height is truly to address architectural and livability issues and not an attempt to gain additional stories or floor area. Density in Planning Area F: As discussed in the memo from the Town Attorney dated January 24, 2018, The Village (at Avon) has a density cap of 2,400 dwelling units. When the PUD was approved in 1998, all impacts of the entire PUD to the Town were evaluated including traffic, fiscal impacts, transit impacts, and many other impacts. The PUD mitigated for all of these impacts with improvements and other concessions. The change in the density only shifts dwelling units within the PUD to provide a slightly higher concentration on Planning Area F than is allowed today. The proposal as recommended by the Planning and Zoning Commission is to increase the maximum potential density on Planning Area F from 18 units per acre to 25 units per acre. Planning Area F is approximately 13 acres so the result is a potential increase from 234 units to 325 units or an increase in 91 units. Town Council Concerns: Several Town Council members expressed concern about the increase in density on this parcel even though the net effect on density in the PUD is zero. To provide some context, in the core areas, residential densities range from 50 units per acre to 95 units per acre (upa) ▪ Westin Mountain Villas at 95 upa ▪ Westin Hotel at 70 upa ▪ Avon Center at 50 upa ▪ Wyndham at 54 upa In areas surrounding or outside the core: ▪ Eagle Bend Apartments at 32.5 upa (240 units on 7.38 acres) ▪ Avon Crossing at 24 upa ▪ Avon Lake Villas at 24 upa ▪ Sunridge at 20 upa. Revised Proposal: To address the concern of density we further analyzed the need for additional density to allow for the desired type and density for a multiple family project with a mix of units including smaller one and two bedroom units. Density is only based on unit or key count and does not discriminate between a 600 sq. ft. unit and a 2,000 sq. ft. unit (or a 5,000 sq. ft. unit for the matter). The applicant believes that 285 units are necessary to allow for a viable project on the site. That translates to 22 units per acre or an increase of 51 units on Planning Area F or a 2% shift in density within the PUD. PO Box 4777 Eagle, Colorado 81631 970.376.3318 www.mpgvail.com ATTACHMENT A 3 We believe 22 units per acre is a reasonable shift in density. Commercial/Residential Allocation in Planning Area F: Planning Area F is currently restricted to a maximum of 50% of the floor area developed as residential. The commercial floor area allowed can be 100% of the floor area. The proposed amendment seeks to reverse that, allowing 100% of the floor area to be residential and 30% of the floor area developed as commercial, but not required. An example of what the current PUD requirement that might look like, if 100 dwelling units were proposed at an average of 1,000 sq. ft. each, the result is 100,000 sq. ft. of residential use. That would require an equal amount or greater of commercial floor area or 100,000 sq. ft. of commercial floor area. The Planning and Zoning Commission recommend a minimum of 10% of the floor area be required as commercial. An example of that might look like: 200 dwelling units which equals 200,000 sq. ft. requires another 20,000 sq. ft. of commercial floor area. Neither examples of a minimum commercial requirement are supportable given the retail trends and the vacancy rates in Avon and the mid-valley region. Town Council Concerns: At least one Town Council member expressed concern about removing the “requirement” for a minimum amount of commercial space in Planning Area F, despite the proximity of Planning Area F to existing commercial uses within the PUD and adjacent to the PUD. What was expressed was a desire to see some limited commercial uses within the planning area. Revised Proposal: While the applicant would prefer to have no “requirement” and allow the market to dictate whether commercial is appropriate or not, to address the concern the applicant is proposing to add a requirement that with each 150,000 sq. ft. of residential floor area completed in the planning area, there would be at least 1,000 sq. ft. of commercial floor area. The applicant hopes this approach supplies enough residential carrying capacity (approximately 150 units) to support the commercial space (in Planning Area F) provided to help prevent the commercial space from being vacant or under-utilized. We hope that the proposed changes help make the Town Council comfortable with the proposed amendments and shows a willingness on the part of the applicant to respond to real concerns of the Town Council as it works to enable a better product for Avon. We look forward to discussing this with you on May 8. Sincerely, Dominic F. Mauriello, AICP Principal ATTACHMENT A THE VILLAGE (AT AVON) PUD GUIDE REVISIONS MAY 3, 2018 B. TOTAL PERMITTED DENSITY. The total permitted density for The Village (at Avon) PUD shall not exceed: 1. Planning Areas A, C, D, E, F, G, H, J, K, RMF 1 and RMF 2 shall not exceed: (a) Commercial Uses. 825,000 consolidated Gross Square Footage of Commercial Space. (b) Dwelling Units. 2,400 Dwelling Units. Pursuant to the terms of the Affordable Housing Plan, 500 of the 2,400 Dwelling Units shall be constructed as affordable housing, and, subject to satisfaction of the conditions precedent set forth in the Affordable Housing Plan, an additional 23 of the 2,400 Dwelling Units shall be constructed as affordable housing. 2. The permitted Commercial Use and Dwelling Unit densities within Planning Area I shall be determined in the future pursuant to the formal amendment procedures set forth in Section Error! Reference source not found. of this PUD Guide; provided, however, the permitted Commercial Space for Planning Area I shall not be less than 196,970 consolidated Gross Square Footage (which shall be in addition to the 825,000 square feet of consolidated Gross Square Footage stated in Section A.1(a)), and the permitted Dwelling Units shall not be less than 750 Dwelling Units. The Town acknowledges that Planning Area I is entitled to be developed as mixed-use development, and Uses may include Residential Uses, Commercial Uses, and public and institutional uses at densities in addition to those set forth above as approved by the Town. Until such time as a secondary access road is constructed, no non-Residential Uses shall be allowed and the maximum density of Dwelling Units shall not exceed 280 Dwelling Units. 3. Density calculations, as applicable, for development of Dwelling Units within all Planning Areas where Residential Uses are permitted shall be based on the gross acreage within the applicable Planning Area as reflected in the land use table contained in the PUD Master Plan. Density calculations shall be on a Planning Area by Planning Area basis rather than on a Final Plat by Final Plat basis or on a Site by Site basis. 4. Subject to the requirement that the maximum number of Dwelling Units within any particular Planning Area, as applicable, shall not exceed that permitted under the terms and conditions of this PUD Guide, as applicable, the actual number of Dwelling Units per acre within ATTACHMENT A a particular Final Plat or Site within the affected Planning Area may exceed the maximum number of Dwelling Units per acre based on the acreage within such Final Plat or Site. By way of example, in a Planning Area containing 20 acres and subject to a maximum residential density of 18 Dwelling Unit per acre (i.e., a total of 360 Dwelling Units), a 10 acre Site within that Planning Area would be permitted to be developed with 300 Dwelling Units (i.e., 30 Dwelling Units per acre) but the remaining 10 acres could be developed with no more than 60 Dwelling Units, with the resulting density within such Planning Area in the aggregate being 18 Dwelling Units per acre (i.e., (300 + 60 = 360 Dwelling Units) / 20 acres = 18 Dwelling Units per acre). 5. Density calculations for development of Residential Uses within Planning Areas A through I, RMF 1 and RMF 2 shall exclude areas with slopes exceeding 40%. Notwithstanding the foregoing, areas with slopes exceeding 40% created by the placement of dirt stockpiles shall not be excluded for density calculations for development of Residential Uses within Planning Areas A through I, RMF 1 and RMF 2. 6. At final build-out of the particular Planning Area, the following minimum and maximum ratios of consolidated Gross Square Footage of Commercial Space and consolidated Gross Square Footage of Residential Uses, stated as a percentage of the aggregate Gross Square Footage the Planning Area [e.g., Gross Square Footage of Commercial Space ÷ (Gross Square Footage of Commercial Space + consolidated Gross Square Footage of Residential Uses) = percentage of Gross Square Footage of Commercial Space], shall apply within the following Planning Areas: Planning Area Residential Commercial Min% Max% Min% Max% Planning Area A 30% 80% 20% 70% Planning Areas C and D 90% 100% 0% 10% Planning Areas F 0% 50%100% 50%1,00 0 sq. ft. per each 150,000 sq. ft. of construct ed residentia l floor area 100%30 % Planning Areas G and H 0% 50% 50% 100% D. DEVELOPMENT STANDARDS WITHIN THE VILLAGE (AT AVON) PUD. 6. Planning Areas F, G, H and I – Regional Commercial Mixed Use Projects. ATTACHMENT A (d) Building Envelope Requirements: (i) Minimum Building Setbacks: (1) Commercial Uses: a. Front: 25 feet b. Side: None c. Rear: 10 feet d. Abutting Interstate 70 or railroad right-of-way: 20 feet (2) Industrial and Residential Uses: a. Front: 25 feet b. Side: 7.5 feet c. Rear: 10 feet d. Abutting Interstate 70 or railroad right-of-way: 20 feet e. In Planning Area F, any building over 48’ in height shall be set back a minimum of 40’ from the property line adjoining Post Blvd. and 100’ to East Beaver Creek Blvd./future Main Street. (3) Vertically-integrated Mixed Use Projects: a. Front: 25 feet b. Side: None c. Rear: 10 feet d. Abutting Interstate 70 or railroad right-of-way: 20 feet e. In Planning Area F, any building over 48’ in height shall be set back a minimum of 40’ from the property line adjoining Post Blvd. and 100’ to East Beaver Creek Blvd./future Main Street. ATTACHMENT A (ii) Maximum Building Height: (1) Commercial Uses: a. Hotel Uses (including without limitation, hotel Uses comprising a portion of a Mixed Use Project) on Planning Area I only: 55 feet, provided that such Uses may be permitted up to a maximum Building Height of 135 feet as specifically identified as a Special Review Use in Section Error! Reference source not found.. b. Hospitals on Planning Area I only: 80 feet. c. All other Commercial Uses: 48 feet. (2) Industrial Uses: 48 feet. (3) Residential Uses: a. Single-family Dwellings and Duplex Dwellings: 35 feet. b. Multi-family Dwellings: 48 feet in Planning Areas G, H, and I and 58 feet in Planning Area F. In Planning Area F, buildings are limited to four stories of habitable residential floor area (excluding vaulted spaces) above finished grade. (4) Vertically-integrated Mixed Use Projects (except as set forth in Section A.6(ii)(1) with respect to hotels comprising a portion of a Mixed Use Project): 48 feet. (iii) Minimum Landscaped Area: 20%. (iv) Minimum Lot Area: Not applicable. (v) Maximum Site Coverage in Planning Area F only: 50%. (b) Residential Density Maximum: (i) Planning Areas F, G and H: 18 22 Dwelling Units per acre. (ii) Planning Areas G and H: 18 Dwelling Units per acre. (iii) Planning Area I: Subject to this Section A.6(b)(iii), 15 Dwelling Units per acre, subject to the following: cul-de-sacs may exceed 1,000 feet in length and service not more than 280 Dwelling Units within Planning Area I, and that the portion of a cul-de-sac that is in excess of 1,000 feet shall not service Commercial Uses. With respect to any cul-de-sac located both within and outside of Planning Area I, (i) no Dwelling Units served by the portion of such cul-de-sac located outside of Planning Area I shall be counted toward the foregoing 280 Dwelling Unit limitation; and (ii) the portion of any such cul-de- ATTACHMENT A sac located within Planning Area I shall be deemed separate and distinct from, and not included with, any portion of the same cul-de-sac located outside of Planning Area I for purposes of calculating the Dwelling Units counted toward the foregoing 280 Dwelling Unit limitation. ATTACHMENT A The Village (at Avon) Preliminary PUD Findings of Fact and Record of Decision: #PUD17001 Page 1 of 2 AVON TOWN COUNCIL FINDINGS OF FACT AND RECORD OF DECISION PRELIMINARY PLANNED UNIT DEVELOPMENT APPLICATION FOR THE VILLAGE (AT AVON) PUD DATE OF DECISION: May 8, 2018 APPLICATION TYPE: Preliminary PUD FILE NUMBER: #PUD17001 PROPERTY LOCATION: Lot 1, Filing 1, Village at Avon APPLICANT/OWNER: Traer Creek-RP LLC These findings of fact and record of decision for The Village (at Avon) PUD Amendment application (“Application”) is made in accordance with the Avon Development Code (“Development Code”) §7.16.020(f): PRELIMINARY PUD: The Avon Town Council hereby approves the Preliminary PUD Application for The Village (at Avon) PUD (“Property”), with the following Findings and Conditions: FINDINGS: 1. The Application is eligible to be processed as a Preliminary PUD approval based on the eligibility requirements in Section 7.16.060 (b), Eligibility Criteria, as is more particularly described in the staff report, the recommendation of the Avon Planning and Zoning Commission, and the Application. 2. The Planning and Zoning Commission held a public hearing on March 6, 2018, after posting notice of such public hearing in accordance with the requirements of Section 7.16.020(d), Step 4: Notice, and recommended conditional approval of the Application citing conformance with the review criteria. 3. The Avon Town Council held public hearings on April 10, 2018 and May 8, 2018, and after posting notice as required by law, considered all comments, testimony, evidence and PZC staff report prior to taking action on the Application. 4. The Application meets the PUD Amendment Review Criteria in Section §7.16.060(e)(4), as is more particularly described in the staff report dated March 6, 2018, Findings of Fact and Record of Decision of the Avon Planning and Zoning Commission, and the Application. 5. Compared to the underlying The Village (at Avon) PUD Guide development standards for Planning Area F, the Application and modifications proposed for Planning Area F would not result in significant adverse impacts upon other properties. 6. The Application is substantially compliant with the purpose statements of the Development Code by providing for the orderly, efficient use of the Property, while at the same time conserving the value of the investments of owners of property in Town. ATTACHMENT B The Village (at Avon) Preliminary PUD Findings of Fact and Record of Decision: #PUD17001 Page 2 of 2 7. Increased residential density, along with reduced commercial land use, will result in increased pedestrian demand and usage in the area; therefore, wider sidewalks, bike lanes, pedestrian improvements, and other street scape improvements that improve the connection of the property to other parts of Town will mitigate the increased residential density. 8. A wider streetscape and multi-modal network, compatible with other adjacent and planned east-west thoroughfares (i.e. Beaver Creek Boulevard) is warranted for the Planning Area F frontage with an appropriately sized right-of-way to facilitate these shifting trends in mobility. CONDITIONS: Approval of the Preliminary PUD Application is subject to performance, satisfaction and completion of the following conditions: 1. A complete Final PUD application must be submitted within six (6) months of Town Council final action on the Preliminary PUD. 2. The Final PUD Application shall be updated as follows: a. All changes enumerated in the April 27, 2018 letter from Dominic Mauriello will be incorporated, specifically: i. Building height increase shall be 58’ and the setback from Post Boulevard for any structure, or portion thereof, which exceeds 48’ in height shall be increased to 40’, the setback from East Beaver Creek Boulevard (i.e. future Main Street) for any structure, or portion thereof, which exceeds 48’ in height shall be increased to 100’, structures shall be limited to 4 total stories above grade, and Applicant shall propose language for review and consideration by Town to define stories and above grade. ii. Density shall be increased to 22 residential units per acre. iii. Applicant shall propose language for review and consideration by Town which requires 1,000 sq. ft. of commercial floor area to be developed as a condition of receiving a certificate of occupancy for each 150,000 sq. ft. of residential floor area. b. Amendments to Village (at Avon) PUD Guide, Appendix F, Illustrations 7 and 8, to revise the Urban Local Road, Main Street (eastern segment) to be commensurate with Town of Avon Road Standards and depict a 78’ minimum right-of-way incorporating 6’ wide minimum sidewalks on each side of the road, 4’ bicycle lanes, 6’ landscape buffers, and potential for on-street parking and/or vehicle turn lanes and 12’ bus pull offs for residential development that exceeds 18 units per acre. c. Applicant shall prepare for Town review and consideration a complete updated The Village (at Avon) PUD Guide to replace and supersede the existing The Village (at Avon) PUD Guide. APPROVED BY MOTION on May 8, 2018. AVON TOWN COUNCIL By:_______________________________ Attest:____________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk ATTACHMENT B ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C ATTACHMENT C 1 From: bobby bank Sent: Monday, January 15, 2018 4:38 PM To: Debbie Hoppe <dhoppe@avon.org>; Matt Pielsticker <mpielsticker@avon.org> Subject: Village at Avon P&Z comment P&Z Committee: I would like to make a comment for the record as a Town of Avon property owner, relatively close to the Village at Avon. I respectfully ask that the P&Z DENY any increase in height or any changes to residential vs. commercial density at the Village at Avon. For the current application, and also to any future application. I believe it is impossible to be able to determine the impact of any changes without a complete Village at Avon plan. I think it is necessary to have a complete development plan because it is important to see where the changes to other sections will be made up if there are increases in this particular project. It is my feeling that any increases in residential density should take place as close to the Town of Avon central business area as possible, and that the corresponding lowered density should occur away from Town. If the developer wants to develop what is already approved for the section, they are perfectly within their rights and it should be allowed. If this is to occur it would be a great example of BAD development. If the developer wants to make changes, they should provide a comprehensive, complete plan for the entirety of the Village at Avon. This is how GOOD development occurs. Respectfully, Robert L Bank 5147 Eaglebend Drive Avon, CO 81620 (970) 476‐6171 ATTACHMENT D 1 From: Kristi Ferraro Sent: Monday, January 15, 2018 11:17 PM To: Matt Pielsticker <mpielsticker@avon.org> Subject: Traer Creek Application Hi Matt, Can you please provide the following comments on the Traer Creek application to P&Z at the January 16, 2018 meeting? I do not believe a 66 foot building height is appropriate in this location. The comprehensive plan contemplates that the building heights in Avon would be greatest near the Avon Center and the Westin and taper down radiating outward from that area of Town. This application will create a height cluster outside of the West Town Center area, and it will stick out like a sore thumb. I also don't believe that there is sufficient public benefit provided by the applicant to grant this significant change to its land use approvals. These changes are detrimental to the Town's existing plans that were adopted to ensure that Avon will expand in a smart and thoughtful way. This application will result in a haphazard development pattern that we have worked hard to eradicate in Avon. Thank you. Kristi Ferraro Kristi Ferraro, LLC 3860 Eaglebend Drive P.O. Box 145 Avon, Colorado 81620 Phone: (970)471-4715 Fax: (970)748-3175 This communication is confidential, it is intended only for the named addressees, and may be subject to attorney-client privilege, and/or attorney-client work product privilege, none of which are waived by this transmission. If you are not the intended addressee, please immediately reply by email to the sender stating that this communication was misdirected, and destroy all copies of this communication. ATTACHMENT D 1 From: Tamra Sent: Tuesday, January 16, 2018 12:02 AM To: Matt Pielsticker <mpielsticker@avon.org> Cc: Preston Neill <pneill@avon.org> Subject: P&Z: Traer Creek's Notice is Insufficient Avon Planning & Zoning Commission c/o Matt Pielsticker Ladies and Gentlemen: I was shocked to learn that Traer Creek's PUD Major Amendment was heard at your meeting on January 2, 2018, and will be heard again tomorrow evening on January 16, 2018 at its continuance. I am a property owner within 300-feet of unsubdivided Lot 1, Traer Creek PUD; my home is at 1990 Hurd Lane. I RECEIVED NO PUBLIC NOTICE OF THESE PUBLIC HEARINGS. Because I received no notice, I did not know to attend the January 2nd meeting and was not allowed to participate in that hearing. I am now out of town and cannot attend on Jan. 16th either. I am greatly disturbed by this particularly because last Fall I had significant issues with Traer Creek's application and spoke about it at, I believe, the October 17, 2017 public hearing. (I cannot verify that this was the date of my public comments and those of neighbors from Avon Crossing and Chapel Square, residents from which I know spoke on the same night that I did, because unfortunately the Minutes posted on your website for the Oct. 17, 2017 meeting are inadequate as only odd-numbered pages, no even-numbered pages, were scanned. Are our comments recorded on the even-numbered pages of the Oct. 17th, 2017 meeting?). This is very frustrating! I am greatly disturbed that I was left off the NOTICES list for the Traer Creek PUD amendment, and I demand that the process be postponed until formal notices are re-sent. This should include some sort of verification that the notices are actually sent and received. I also request that an inquiry be held to determine how and why I was not sent a notice, and whether the neighbors from Avon Crossing and Chapel Square who also spoke at last October's Public Hearings, were also left off the list of notice recipients. For the record, I continue to have substantive concerns about Traer Creek's amendment even though I have not had an opportunity to scrutinize the revised PUD Major Amendment. I understand from an Eaglebend neighbor who did receive a formal notice that the heights are too high, and that there is no public benefit. Last October I questioned the status of the water tank promised to the valley's Water Authority, and also if Affordable Housing is being proposed on Tract F given that the density applied for is similar to Buffalo Ridge and Eaglebend Apartments. I need these questions answered, and I'm sure I will have more. I seek "due process" so that I can provide substantive comments to Traer Creek's application. Thank you for your work for our town. Sincerely, Tamra Nottingham Underwood 1990 Hurd Lane, Avon1990 Hu ATTACHMENT D Blue Sky Mortgage, LLC 100 West Beaver Creek Blvd. Suite 121 Avon, CO 81620 P.O. Box 1040 Vail, CO 81658 Phone 970/476.0602 Fax 970/251.7113 www.Blue-Sky-Mortgage.com 26 March 2018 Avon Town Council. RE: Traer Creek, Parcel F, Avon, CO Dear Avon Town Council members, As a 45 year residential mortgage banker in the Vail Valley with a 13 year Avon located business, I follow the town, its development and your work on our behalf. Thank you for your continued efforts. Pursuant to Sunday’s Vail Daily article and virtually every discussion I have every workday. There is a shortage of affordable housing in both the rental and purchase marketplaces. As it relates to Traer Creek’s proposal before you tomorrow, I am in favor of more residential—especially apartments —as they are proposing on Tract F. Housing here is essential and Traer Creek’s proposal seems to have no significant impact on adjoining neighbors. Requiring more commercial development, in my mind, is unnecessary as Avon, as we see, has loads of empty commercial space. My family and myself own both residential and office space in Avon and would love to see more residents than empty commercial space. Let’s rather bring more residents and consumers to Town! Please support the Traer Creek Tract F proposal. Many thanks. Sincerely, Jimmy Brenner President ATTACHMENT D 1 ‐‐‐‐‐Original Message‐‐‐‐‐ From: Anne Barnett Sent: Monday, March 26, 2018 3:15 PM To: Avon Council Web <avoncouncilweb@avon.org> Subject: Traer Creek Dear Avon Town Council, As a board member for the Salvation Army Vail Valley, we would like to speak on behalf of the project on Tract F. Traer Creek principals have been our landlords since May 2011. In our role at Salvation Army Vail, we see that housing, particularly apartment housing, is a dire need right now. We have witnessed huge increases in requests for assistance with rent and continue to serve clients living in their cars and camping in the woods due to the lack of affordable housing. We thank Traer Creek for providing us land for our efforts, for free and for assisting us in benefiting the many underserved in the community. Sincerely, Anne Barnett Salvation Army Service Extension Committee Chair Sent from my iPad ATTACHMENT D 1 From: Kristi Ferraro Sent: Tuesday, March 27, 2018 7:47 AM To: Avon Council Web <avoncouncilweb@avon.org> Subject: Comments for Tonight's Meeting Dear Town Council, I will not be able to attend the Town Council meeting on March 27, 2018, but I’d like to provide my comments on the Amendment to the Village at Avon Preliminary PUD Application and the Hahnewald Barn. Village at Avon I am opposed to amending the maximum height on Planning Area F to 58 feet. This would allow a 6 story building, which would be too tall for the neighborhood. As I’ve commented before, the comprehensive plan contemplates that the tallest buildings in Avon will be located in the West Town Center, and heights should diminish with distance from the West Town Center. A 58 foot building on F would be 10 feet taller than the maximum height allowed on C and D, adjacent parcels which are closer to the West Town Center. The parcels adjacent to F across East Beaver Creek Boulevard and Post Boulevard have maximum heights of 35 feet, so a ATTACHMENT D 2 58 foot building would be 23 feet taller than those neighboring buildings. A 58 foot building will stick out like a sore thumb in this neighborhood. I would also like to remind the Town Council that this property will not be subject to any Town design review process and will be exempt from many of the provisions of the Avon Municipal Code that would help ensure good development on this parcel. Exhibit G to the Amended PUD provides an extensive list of Avon Municipal Code sections that don’t apply to the Village at Avon, including: Impact Fees: Avon will get no additional funds to help mitigate the additional impact on its bus service, recreational facilities, police protection, roads, etc., arising from the additional density on this parcel. Avon should deny this amendment unless it gets additional funds to help mitigate the impacts of the additional height, density and residential development permitted on this parcel. Design Review and Design Standards: Avon will have little to no control over the design of this taller, denser development. Avon should deny this amendment unless this parcel, with greater heights, density and visual impacts, is required to go through Avon’s design review process. Outdoor Lighting Standards: This taller building will not have to comply with the outdoor lighting standards. Avon should deny additional height on this parcel unless the improvements on F are required to comply with Avon’s outdoor lighting standards. Approval of any Special Review Uses: Avon will have no say if the Village at Avon’s own design review board decides to grant any special review uses on this parcel. Consequently, the developer could install a wireless telecommunication tower on the top of this taller building or could allow a gas station on the corner of this residential development as its commercial component, both of which are special review uses on this parcel. These uses would fly in the face of P&Z’s desire for this parcel to activate the streetscape and add vibrancy to this neighborhood. I also don’t see any public benefits to the Town for approving this PUD Amendment. The applicant claims that the amendment will provide more customers and employees for local businesses. If this was a public benefit, then any residential development would meet the requirement of a public benefit. Residential development does not pay for itself, especially in the Village at Avon, which would pay the Town only a tiny amount of sales tax revenues generated from this property, and no transfer tax revenues, or accommodation tax revenues. There is no guarantee that these residential units will be small enough or affordable enough to be attainable by local residents. These residential units could be targeted to second homeowners who might only ATTACHMENT D 3 stay in them a few weeks a year, providing few benefits to Avon, but adding greater impacts on Avon’s services and infrastructure. The Village at Avon development has taken advantage of this community and has been a drain on our community’s resources. This dysfunctional development uses litigation as a weapon, and often chooses to fight rather than fulfill its obligations. The Village at Avon development failed to pay Avon for municipal services, leading to a lawsuit with the town. The Village at Avon development failed to reimburse Corum for expenses it incurred on the developer’s behalf to complete Buffalo Ridge, leading to a lawsuit with Corum. The Village at Avon developer insisted on building its own water tank which has subsequently failed, leading to more litigation. With every new twist and turn of this development, more and more costs must be subsidized by the citizens of this valley. I would recommend denying any amendment to the Village at Avon PUD unless the Town of Avon gets something material and immediate in return. Hahnewald Barn. As you know from my comments at the last meeting, I am pleased to see the Town proceeding with the RFP for design of the Hahnewald Barn. We have a window of opportunity to save this iconic structure and create a public gathering place that would take advantage of the best views in town. The barn would give Avon a sense of place, and a sense of history, something that Avon desperately needs. For years, Avon has had a reputation that “there’s no there, there.” A renovated Hahnewald Barn in Harry A. Nottingham Park would go a long way to changing that reputation. Thank you for your attention to my concerns and for your service to our community. Best regards, Kristi Ferraro Avon Citizen and Voter Kristi Ferraro, LLC ATTACHMENT D 4 3860 Eaglebend Drive P.O. Box 145 Avon, Colorado 81620 Phone: (970)471-4715 This communication is confidential, it is intended only for the named addressees, and may be subject to attorney-client privilege, and/or attorney-client work product privilege, none of which are waived by this transmission. If you are not the intended addressee, please immediately reply by email to the sender stating that this communication was misdirected, and destroy all copies of this communication. ATTACHMENT D 1 From: Brad Zoller Sent: Monday, March 19, 2018 5:18 PM To: Debbie Hoppe <dhoppe@avon.org> Subject: PUD Amendment 7.16.020(d) Hello, I'm writing in because I'm not sure I'll make it to the meeting. This regards PUD Amendment 7.16.020(d). I am against amending the PUD guide. This town has been very successful using it's current guidelines and we should keep them. This town is nice and small, and I like it this way. We have great tourism in the winter, and the rest of the time it's not too crowded. Adding density to the PUD guide will hurt this "small town feel", make it more crowded, and strain our town in the winter. A bigger tax base is always nice on paper, but we seem to be doing fine at our current size. Thank you, Brad Zoller ATTACHMENT D 1 From: Tamra Sent: Tuesday, March 27, 2018 12:00 PM To: Debbie Hoppe <dhoppe@avon.org>; towncouncil@avon.org Cc: Matt Pielsticker <mpielsticker@avon.org>; Preston Neill <pneill@avon.org>; David McWilliams <cmcwilliams@avon.org> Subject: The Traer Creek Amendment Dear Town Council, Without waiving my right to proper Notice of this matter (see #1 below), I am writing you in opposition of the proposed Traer Creek PUD amendment. 1)Violation of due process – I own property within 300’ of Lot 1 Traer Creek. I was Notified by mail of the October 17, 2017 Planning & Zoning hearing, and spoke out against the application at that time. However, I was never Notified of the January 2018 P&Z hearings for this re-application; this failure makes the process flawed as it violated my due process rights. Please refer to the email I sent your Planning Dept. on Jan. 16, 2018 when I learned, second hand, about P&Z’s hearing having occurred without Notice to me (see page 177/637 of your e-packet). About ten days ago I received a written Notice of tonight’s March 27, 2018 Town Council meeting however such Notice does not cure the failure to Notice me of the P&Z hearings. 2)Town’s Development Code Finding’s cannot be made – Do not forget: the Traer Creek water tank still sits abandoned, un-usable and in complete disrepair, waste and nuisance - much to the burden of our whole community and its hydrology system! This is an open wound that Traer Creek has decided drag through the court (as it their method) instead of simply fixing the promised infrastructure per the requirements of the water and sanitation district. What an embarrassment! The soils, tank pad and tank failed Memorial Day weekend 2015, and yet this developer has refused to abide by its warranty to ERWSD and make its subcontractors fix the tank. Without a usable tank, there is no way your council can make Finding No. 4 in accordance with your development code. The developer also attempts to gloss over your other required Findings by saying that this amendment for Parcel F is just a tiny part of the behemoth PUD and therefore you need not hold strictly to your code. This is incorrect. Read your criteria closely and you’ll see that your Findings cannot be found. 3)On Merits - While I can appreciate that 58’-height is less than 66’-height, nothing on Parcel F should be higher than 48’. Pay attention to your Comprehensive Plan (also Finding No. 1 under your code) and you’ll recognize that 58’-heights out on Parcel F in the Village of Avon is not in accordance with your Built Form goals and policies set forth in your Comp Plan. In addition, allowing 58’ here could serve as a slippery slope for future councils to allow increased heights throughout the Village at Avon; remember that parcels surrounding Parcel F have a max. height of 48’ and 35’. ATTACHMENT D 2 In addition, this PUD is being treated like it’s a developer’s grab-bag of density amongst 2,400 dwelling units; what an absurd notion! Remember that Traer Creek has never submitted a master development plan and so we are left with this ad hoc approach which will result in poor development. Also, the developer tries to justify increased density by saying that Parcel F is proximate to transportation routes; if it is proximate to the town and county bus that is only because the Town and the County are paying for the transportation. Don’t forget that Traer Creek was supposed to pay for bus service to and through its PUD. These comments in opposition of Traer Creek’s application are submitted without waiver of my right to proper Notice of this amendment. Sincerely, Tamra Nottingham Underwood Resident Avon, Colorado ATTACHMENT D 1 ‐‐‐‐‐Original Message‐‐‐‐‐ From: bobby bank Sent: Tuesday, March 27, 2018 2:49 PM To: Matt Pielsticker <mpielsticker@avon.org> Subject: Public Hearing Comment Avon Town Council and Planning and Zoning Commission: Please accept this email regarding the Lot 1, Filing 1, Village at Avon, 1000 E Beaver Creek Boulevard request for 1) increase in density allowance and 2) increase maximum allowable residential development. I am renewing my objection to the Traer Creek proposal. I believe it is impossible to make this decision without a proper site plan for the entire Village (at Avon) PUD. I understand that this is only a request for one parcel, and the developer claims “Maximum residential density and commercial square footage of entire Village (at Avon) PUD would remain unchanged.” I respectfully comment that without knowing where the density is being taken from, and commercial is being added to, you should not allow any changes like this. I do believe that the developer has every right to develop the site as already agreed upon, but I again state that allowing this action would just be another example of BAD planning. The way good development happens is to have a complete plan. Sincerely, Robert “Bobby” Bank 5147 Eaglebend Drive ATTACHMENT D ATTACHMENT D 1 From: Tamra Sent: Tuesday, April 10, 2018 12:04 PM To: Avon Council Web <avoncouncilweb@avon.org> Cc: Preston Neill <pneill@avon.org>; Virginia Egger <vegger@avon.org> Subject: Re: The Traer Creek Amendment Dear Town Council: I'm not sure you understand the point I've been trying to make: your Development Code is being violated by applicant Traer Creek-RP LLC. The argument about violation of due process is not just about me - its about everyone who should have been told about the January 2018 Planning & Zoning Commission hearings. I never received the Notice of Public Hearings attached at e-page 89/570 of your packet. I notified the town of this failure of sufficient notice under the Development Code back at 12:02AM on 1/16/2018. If I did not (and the town was told of that fact), then it is completely reasonable for the town to ask "who else did not receive the notice"? The town has been on notice of the developer's faulty formal written notice since 12:02AM on 1/16/2018.... and now that very email by which I informed the town of an error is being construed as "constructive notice" under Section 7.16.020(d)(4)? That's ridiculous. The town council needs to look into this. What proof does the town have that the developer complied with Section 7.16.020(d)? Who sent the notice? Perhaps the mailing was only partly faulty and it was only those who spoke against the application in October 2017 who where not mailed notification in January 2018? The town council needs to look into this. To be clear: I have never received a written notice (let alone 11 days in advance as required by Section 7.16.020(d)(2)) of any of Planning & Zoning's hearing of the revised application of Traer Creek-RP LLC and I have never appeared at any 2018 Planning & Zoning Commission hearing about the revised application of Traer Creek-RP LLC. Please investigate who did and did not receive proper notice under your code. According to Section 7.16.020(d)(4) "In all cases, however, the requirements for the timing of the notice and for specifying the time, date and place of a hearing shall be strictly construed." Without waiving my right to proper notice I provide the town council with the following input: 58’-heights on Parcel F in the Village of Avon is not in accordance with the ComprehensivePlan Built Form goals and policies; you cannot make Finding No. 1 required under the Avon Development Code. The Traer Creek water tank still sits abandoned, un-usable and in complete disrepair, waste and nuisance - much to the burden of our whole community and its hydrology system. Without ATTACHMENT D 2 a usable tank, there is no way your council can make Finding No. 4 in accordance with your development code. The developer also attempts to gloss over your other required Findings by saying that this amendment for Parcel F is just a tiny part of the behemoth PUD and therefore you need not hold strictly to your code. This is incorrect; read your criteria closely and you’ll see that your Findings cannot be found. The PUD is being treated like it’s a developer’s grab-bag of density amongst 2,400 dwellingunits. Remember that because Traer Creek has never submitted a master development plan, the town is left with this ad hoc approach which will result in poor development. The developer tries to justify increased density by saying that Parcel F is proximate to transportation routes; if it is proximate to the town and county bus that is only because the Town and the County are paying for the transportation. Don’t forget that Traer Creek was supposed to pay for bus service to and through its PUD. Very truly yours, Tamra Underwood From: "Tamra" <underwoodavon@comcast.net> To: dhoppe@avon.org, towncouncil@avon.org Cc: "Matt Pielsticker" <mpielsticker@avon.org>, "Preston Neill" <pneill@avon.org>, dmcwilliams@avon.org Sent: Tuesday, March 27, 2018 11:59:50 AM Subject: The Traer Creek Amendment Dear Town Council, Without waiving my right to proper Notice of this matter (see #1 below), I am writing you in opposition of the proposed Traer Creek PUD amendment. 1)Violation of due process – I own property within 300’ of Lot 1 Traer Creek. I was Notified by mail ofthe October 17, 2017 Planning & Zoning hearing, and spoke out against the application at that time. However, I was never Notified of the January 2018 P&Z hearings for this re-application; this failure makes the process flawed as it violated my due process rights. Please refer to the email I sent your Planning Dept. on Jan. 16, 2018 when I learned, second hand, about P&Z’s hearing having occurred without Notice to me (see page 177/637 of your e-packet). About ten days ago I received a written Notice of tonight’s March 27, 2018 Town Council meeting however such Notice does not cure the failure to Notice me of the P&Z hearings. 2)Town’s Development Code Finding’s cannot be made – Do not forget: the Traer Creek water tank still sits abandoned, un-usable and in complete disrepair, waste and nuisance - much to the burden of our whole community and its hydrology system! This is an open wound that Traer Creek has decided drag through the court (as it their method) instead of simply fixing the promised infrastructure per the requirements of the water and sanitation district. What an embarrassment! The soils, tank pad and tank failed Memorial Day weekend 2015, and yet this developer has refused to abide by its warranty to ERWSD and make its subcontractors fix the tank. Without a usable tank, there is no way your council can make Finding No. 4 in accordance with your development code. The developer also attempts to gloss over your other required Findings by saying that this amendment for Parcel F is just a tiny part of the behemoth PUD and therefore you need not hold ATTACHMENT D 3 strictly to your code. This is incorrect. Read your criteria closely and you’ll see that your Findings cannot be found. 3)On Merits - While I can appreciate that 58’-height is less than 66’-height, nothing on Parcel F should be higher than 48’. Pay attention to your Comprehensive Plan (also Finding No. 1 under your code) and you’ll recognize that 58’-heights out on Parcel F in the Village of Avon is not in accordance with your Built Form goals and policies set forth in your Comp Plan. In addition, allowing 58’ here could serve as a slippery slope for future councils to allow increased heights throughout the Village at Avon; remember that parcels surrounding Parcel F have a max. height of 48’ and 35’. In addition, this PUD is being treated like it’s a developer’s grab-bag of density amongst 2,400 dwelling units; what an absurd notion! Remember that Traer Creek has never submitted a master development plan and so we are left with this ad hoc approach which will result in poor development. Also, the developer tries to justify increased density by saying that Parcel F is proximate to transportation routes; if it is proximate to the town and county bus that is only because the Town and the County are paying for the transportation. Don’t forget that Traer Creek was supposed to pay for bus service to and through its PUD. These comments in opposition of Traer Creek’s application are submitted without waiver of my right to proper Notice of this amendment. Sincerely, Tamra Nottingham Underwood Resident Avon, Colorado ATTACHMENT D ATTACHMENT E ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 1 Staff Report – Preliminary PUD (Major Amendment) March 6, 2018 Planning & Zoning Commission Meeting File #PUD17001 Legal description Lot 1, Village (at Avon) Filing 1 – Planning Area F Zoning PUD Address 1000 East Beaver Creek Boulevard Prepared By Matt Pielsticker, AICP, Planning Director -- CONTINUED PUBLIC HEARING -- Introduction Before the Planning and Zoning Commission is a Planned Unit Development (PUD) Amendment (“the Application”) to amend the Village at Avon PUD Guide and standards for Planning Area F (PA-F). This Planning Area measures approximately 13 acres and is situated at the northwest corner of the Post Boulevard and East Beaver Creek Boulevard (referred to as “the Property”). The Village at Avon PUD Guide, the governing zoning document, requires mixed-use projects in PA-F, and multi-family buildings up to 48’ tall are permitted a density of 18 dwelling units per acre. All other development standards (i.e. setbacks, parking, minimum landscape area, etc.) remain the same and no changes are being sought to the PUD Master Plan map. The commercial square footage cap for the entire PUD remains at 825,000 sq. ft. and the total permitted dwelling units remain at 2,400. A cover letter explaining changes (Attachment A), review criteria analysis (Attachment B), proposed modifications to the PUD Guide (Attachment C), existing complete PUD Guide (Attachment D), and PUD Master Plan map (Attachment E) are attachment to this staff report. A memo from the Town Attorney regarding public benefits is also included (Attachment F). Proposed Amendments The following amendments are proposed to Planning Area F: o Increase in maximum density from 18 dwelling units per acre (or approximately 234 dwelling units total), to 25 dwelling units per acre (or approximately 325 dwelling units total). o Removal of mixed-use requirement as follows: o Current: Residential minimum 0%, 50% maximum; o Proposed: Residential minimum 0%, 100% maximum; o Current: Commercial 50% minimum, 100% maximum. o Proposed: Commercial 0% minimum, 30% maximum. o Increase building height from 48’ to 58’ for multi-family buildings. o Heights over 48’ must be at least 40’ from southern and east Property boundaries o Site Coverage Reduction from 80% maximum to 50% maximum ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 2 File History This Application was originally noticed and reviewed by PZC in late 2017. After additional changes to the application were incorporated, the file was the re-noticed and has been continued several times. A complete history follows: September 2017 File Submitted to Community Development Sept – Oct 2017 Staff Review and Agency Referrals October 17, 2017 Public Hearing No. 1 [continue request until November 21, 2017] November 21, 2017 Public Hearing No. 2 [continue request until December 5, 2017] December 5, 2017 Public Hearing No. 3 [application tabled] - Revised Materials Received, including increase in building height - Adjacent owners and Vail Daily Re-notified for January 2, 2018 Hearing January 2, 2018 Public Hearing No. 4 - PZC Review, Direction, and Continuance January 16, 2018 PZC Hearing No. 5 [continue request until February 6, 2018] February 6, 2018 PZC Hearing No. 6 [continue request until February 20, 2018] February 20, 2018 PZC Hearing No. 7 [continue request until March 6, 2018] March 6, 2018 PZC Hearing No. 8 - Additional modifications for consideration PUD Master Plan Vicinity Map ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 3 Process Major PUD Amendment Since the Application does not meet any of the qualifying administrative amendments outlined in the Village at Avon PUD Guide, this application is being processed as a “Formal Amendment” accordingly under §7.16.060(h), Amendments to a Final PUD, AMC. Subsection (1)(v), states that a PUD amendment that is not classified as an administrative or minor amendment shall be considered “major”. Subsection (2)(iv) sets forth the review procedures for process which includes preliminary and final PUD applications. Before PZC is the preliminary PUD application. The PZC shall review a preliminary PUD application and shall provide a recommendation to the Town Council after conducting a public hearing. The Town Council shall review and render a final decision on a preliminary PUD application after conducting another public hearing. Unless otherwise approved by the Town Council, approval of a preliminary PUD application shall vest no rights to an applicant other than the right to submit a final PUD development plan. There is a six (6) month timeframe following approval of a preliminary PUD plan, whereby the applicant must initiate the second stage of the process by filing a final PUD plan and proceed through the same process with PZC and Town Council. Public Notification In compliance with the Public Hearing and noticing requirements, a mailed notice was provided to all property owners within 300’ of the property. While the subject property of PA-F is limited to 13 acres, the 300’ notice was provided to all landowners within 300’ of Lot 1, which encompasses the majority of the valley floor between Chapel Square and Post Boulevard. Additionally, notice was published in the Vail Daily. No written comments have been received for this Application. Public Hearings The March 6, 2018 meeting completes the public hearing requirements with the PZC. As noted, the Council will make the final decision on this preliminary PUD after holding an additional public hearing. Staff Analysis Density Increase Staff Review: This proposal can be equated to a transfer of development rights from other areas of the PUD to Planning Area F. The total density for the Village at Avon PUD remains at 2,400 dwelling units. Of the total 2,400 dwelling units, 500 must be ‘affordable’ by definition. The Buffalo Ridge apartments are the sole housing project, containing 244 units. Therefore, approximately half of the affordable units have been constructed and 2,156 dwelling units remain. It should be noted that within planning areas, portions can exceed the maximum number of dwelling units per acre prescribed if the total density is not exceeded within the planning area. By way of example, Planning Area F contains 13 acres and is currently subject to a maximum residential density of 18 dwelling units per acre (i.e. a total of 234 dwelling units). A 7-acre site within Planning Area F could be developed with 175 dwelling units (i.e. 25 dwelling units per acre), but the remaining 6 acres would be limited to not more than 59 dwelling units (or 10 dwelling units/acre), with the resulting density in the aggregate being 18 dwelling units per acre (i.e. 175+59=234 dwelling units / 13 acres = 18 dwelling units per acre). Density by itself does not present substantial impacts beyond the site which cannot be mitigated or are already mitigated by the location of the site. One impact could be increased traffic from one concentrated area of the PUD. Post Boulevard includes four lanes of travel and is anchored by roundabouts on both ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 4 corners of the lot, which helps to alleviate traffic concerns. Future transit connections are not fully understood but should be considered with full buildout of the planning area. The Wal-Mart bus stop on the other side of Traer Creek Plaza can be used for an interim timeframe for both local and regional transit connections from PA-F. If the project is phased, staff would encourage sidewalk connections to nearby networks. Elimination of Mixed Use Requirement Staff Review: The Village at Avon PUD includes mixed-use requirements for Planning Areas A, C, D, F, G, and H. This comprises the valley floor area between Interstate 70 and the railroad tracks. In general terms, mixed use developments allow for people to live, work, play and shop in one place, which then becomes a destination for people from other areas. Mixed use developments benefit from increased pedestrian activity and vibrancy, as can be seen in the nearby Riverwalk development in Edwards. The western side of the Village at Avon is referred to as Planning Area A (PA-A) and includes residential minimum and maximum percentages as 30% and 80% respectively. The commercial minimum and maximum for PA-A is 20% and 70%; it may have been viewed as more flexible given its relationship to an already established less-dense development pattern. PA-F acts as a transition zone between regional commercial and arterial roadways, to more of a local setting on East Beaver Creek Boulevard. That may explain why this eastern part of the valley floor has a higher minimum percentage of commercial than the west side adjacent to Chapel Square. The applicant’s letter outlines the origin of the mixed-use requirement and previous intent for a “mid box” development in the area of PA-F. Retail trends have continued to shift and it is an unrealistic expectation to see a mixed-use project with so much weight on commercial space. And while the current minimum commercial percentage requirement (50%) seems disproportionate given the noted trends, the planning commission did not appear to agree with a complete elimination of commercial space. The Commission offered created ways to “activate” the street frontage, particularly for the East Beaver Creek Boulevard frontage. It could be possible to set aside property or portion of building(s) adjacent to East Beaver Creek Boulevard (“Main Street”) to accommodate future commercial land use when demand is realized. While a single development will not tip the scale for commercial, when critical mass of nearby projects is met, commercial space would be desirable and benefit the entire community. The conceptual site development plan layout reinforces the roundabout corner of the property with building frontage. Staff is recommending that a minimum percentage of commercial be retained, or square footage, with a conditional approval. Height Increase Staff Review: Currently, PA-F is permitted 48’ tall buildings. The proposal would allow for multi-family buildings within PA-F up to 58’. The buildings would be visible from various vantage points including Post Boulevard, properties to the south, and future development to the west. Based upon the location of the site at the toe of a large steep hillside leading to Interstate 70, and the fact that the site orients south and will not shade adjacent roadways or sidewalks, minimal impacts are anticipated to adjacent uses. View corridors should also not be affected based on the elevation of adjacent topography and the location of the planning area. ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 5 As recommended by PZC and staff, the building height proposal has been modified further to address concerns. Staff supports the changes, including reduced overall height, and finds that the modifications further limit any potential impacts of taller buildings. PUD Review Criteria Pursuant to §7.16.060(e)(4), Review Criteria, AMC, the PZC shall consider the following criteria when forming the basis of a recommendation: (i) The PUD addresses a unique situation, confers a substantial benefit to the Town, and/or incorporates creative site design such that it achieves the purposes of this Development Code and represents an improvement in quality over what could have been accomplished through strict application of the otherwise applicable district or development standards. Such improvements in quality may include, but are not limited to: improvements in open space provision and access; environmental protection; tree/vegetation preservation; efficient provision of streets, roads, and other utilities and services; or increased choice of living and housing environments. Staff Response: The Application acknowledges the changed conditions in the housing market, with increases in demand over which was envisioned even 7+ years ago. Changes are not proposed to the existing open space provisions, environmental protections, or use of streets or services. Density changes and/or changes in the residential/commercial mix of this property would not have a direct effect on adjacent streets. For example, no additional curb cuts are envisioned, or would be entertained, on Post Boulevard. Access to PA-F is limited to the Yoder and Post Roundabout on the north, and the future “Main Street” connection on the south. At the time PA-F develops, the portion of E. Beaver Creek Boulevard (north abutting road) and “Main Street” (south abutting road) must be constructed and extended with the elements listed above to meet the minimum roadway requirements. For example, the southern frontage of PA-F must include a 50’ Right of Way with 11’ minimum travel lanes, 6’ landscape areas, 4’ sidewalks, and snow storage. It is the expectation that these abutting roadway sections will be constructed at least to the western limits of any new development within PA-F. In order to achieve the mobility goals of the Town and the stated purposes of the Development Code, staff recommends that the roadway profiles include bike lanes, wider sidewalks and a potential bus pullout on both sides of Main Street. Strong consideration should be given for the 80’ right-of-way profile, currently limited to the “central” segment of East Beaver Creek Boulevard, in order to further “promote effective economical mass transportation, and enhancement of effective, attractive and economical pedestrian opportunities (Development Code 7.04.030(d).” ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 6 Staff would encourage the wider right-of-way profile because 4’ sidewalks and the absence of bike lanes and other mobility improvements should be continuance across the valley floor, and the increased residential density will further impact these networks. Recent experience in planning and design work for West Beaver Creek Boulevard demonstrates that an 80’ right-of-way is essential to best serve all transportation modes. Further, having segments of higher density residential with fragmented and narrowed improvements would not improve the overall quality of the development. If the 80’ right-of-way were provided, half of the property would come from PA-F and half of the property would come from PA-E, the Town owned school site across the street. No substantive changes in utilities are expected. If developed with additional density as proposed, the development could provide increased living and housing options in an area already served by transit and other connections to existing services. (ii) The PUD rezoning will promote the public health, safety, and general welfare; Staff Response: Staff finds no detrimental effects on the public health, safety and/or general welfare with changing density or commercial mix on one portion of the Village at Avon PUD. (iii) The PUD rezoning is consistent with the Avon Comprehensive Plan, the purposes of this Development Code, and the eligibility criteria outlined in §7.16.060(b); Staff Response: The eligibility criteria outlined in §7.16.060(b) are not applicable to this Application as it is already zoned PUD and this is an amendment thereto. This includes the provision of compensatory public benefits. As stated in the Town Attorney’s memo (Attachment D), the appropriate analysis for any requirement is the incremental increased impact of the proposed amendment. Because the application would not result in an increase of overall residential or commercial density of the Village (at Avon) PUD as a whole, staff does not believe any change to the existing requirements (i.e. affordable housing) is appropriate. Consistency with the Avon Comprehensive Plan is documented in the Applicant’s narrative and this application can be found in general conformance with the plan. The Avon Comprehensive Plan applicable to this application is the 1996 plan, not the 2006 plan as previously cited by staff. This is based upon the current PUD Guide definitions and Development Agreement approvals that govern the property. According to the 1996 Comprehensive Plan the Property is located within the “Urban Village.” ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 7 (iv) Facilities and services (including roads and transportation, water, gas, electric, police and fire protection, and sewage and waste disposal, as applicable) will be available to serve the subject property while maintaining adequate levels of service to existing development; Staff Response: This PUD amendment does not change the overall demands of, or ability to be served by existing installed or planned utilities. The mainline utility services are located directly adjacent to the Property and the area is served by all municipal and special district services. Water consumption is limited per agreements; the entire Village at Avon PUD is required to create a “Water Bank” to track available quantities of water. The creation of the Water Bank must be done prior to any building permit approval or further subdivision. Staff will request additional details with regards to the Nottingham-Puder Ditch running through the middle of PA-F since development will impact that infrastructure. Additionally, there is a Wet Well on the east side of PA-F, used by the Town for raw water irrigation purposes, that will need to be accessed periodically after development. As conditions of a Final PUD, staff will recommend specific conditions related to a revised Nottingham-Puder Ditch easement, and an amended Wet Well easement. As discussed herein, mobility facilities should be assured with the provision of adequate right-of-way to accommodate bike lanes, sidewalks, and on-street facilities to meet the increased demands and connectability of the area to adjacent transit and commercial developments. (v) Compared to the underlying zoning, the PUD rezoning is not likely to result in significant adverse impacts upon the natural environment, including air, water, noise, storm water management, wildlife, and vegetation, or such impacts will be substantially mitigated; Staff Response: The proposed Application will not result in any significant adverse impacts upon the natural environment, compared to the underlying zoning. The Nottingham-Puder ditch should be enhanced with a future project, or protected so that water quality is not degraded. The area has been disturbed over the years with highway-related construction, and other grading activities, leaving no area “natural” in the sense of this review criteria. (vi) Compared to the underlying zoning, the PUD rezoning is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; and Staff Response: Compared to the underlying PUD zoning for PA-F, changes in building height should not result in substantial impacts to other properties in the vicinity. The modified proposal includes building setbacks for any portions of structures that would exceed the current 48’ maximum height. (vii) Future uses on the subject tract will be compatible in scale with uses or potential future uses on other properties in the vicinity of the subject tract. Staff Response: As outlined, staff finds the Application’s proposed use and scale is generally compatible with other existing and future potential uses in the vicinity. This compatibility is a consequence of natural and manmade buffers, existing regional commercial uses in the vicinity, as well as a high level of development potential on areas of Planning Area C to the west. PA-F is located with substantial buffering: Interstate 70 to the north, Post Boulevard on the east, “Main Street” to the south, and future mixed development to the west. No significant impacts are anticipated if increased density or height were developed on the Property. The Applicant’s narrative presents higher density project in Town to provide an overall feel of the proposed increase in units. It ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 8 should be noted that some of the examples provided (i.e. Westin Mountain Villas) are high density accommodate projects that are on much smaller footprint properties Other high density residential projects, that are located on larger properties similar to PA-F can be found within the Town for comparison, including the following: Buffalo Ridge – 244 Units on 15 acres - 16.25 DU/Acre Eaglebend Apartments – 240 Units on 7.38 acres - 32.50 DU/Acre ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 9 Options for PZC Action The Planning and Zoning Commission can recommend approval as submitted, approval with conditions, denial, or continuance if additional information is requested. The file must be acted upon not later than the April 3, 2018 meeting in order to remain in compliance with the processing requirements in the Development Code. The April 3, 2018 hearing is the final hearing within the ninety-five (95) day window for public hearings, originating with the January 2, 2018 hearing. Based upon the direction received at previous meetings, staff is providing a conditional approval motion, as well as a motion for denial. The conditional approval motion includes findings and conditions that may be deemed necessary to ensure compliance with the applicable review criteria. Findings and Conditions Section 7.16.020(f)(4) provides guidance on Conditions, with states: Conditions. The reviewing authority may recommend approval or may approve a development application with conditions where such conditions are deemed necessary to ensure compliance with the applicable review criteria and the purpose and intent of this Development Code. Conditions shall be in written form and attached to the approved plan, plat or permit. Conditions may include specific time limits for performance of any condition. Conditions may include financial performance guarantees from the applicant where the condition requires improvements for mitigation, where deemed necessary to public health, safety or welfare or where deemed necessary to protect adjacent property or public infrastructure. Financial performance guarantees shall be in the form of an agreement which is acceptable to the Town and shall be executed by the applicant. Approval Motion “I hereby recommend that the Avon Town Council approve the application for a Preliminary PUD Amendment, File PUD17001, citing the following findings and recommended conditions: Findings: 1. The Application, with additional information provided at Final PUD, provides sufficient information to determine that the development application complies with the relevant review criteria. 2. The Application demonstrates compliance with the goals and policies of the Avon Comprehensive Plan. 3. The Application is in conformance with Avon Development Code Section 7.16.060(e)(4), Review Criteria, as outlined in staff’s report and the applicant’s written response to the Review Criteria. 4. Compared to the underlying zoning of PA-F, the PUD amendment is not likely to result in significant adverse impacts upon other property in the vicinity. 5. Future uses on PA-F will be compatible in scale with potential future uses on other properties in the vicinity. 6. Increased residential density on the subject property, along with reduced commercial land use, will result in increased pedestrian demand and usage in the area; wider sidewalks and pedestrian friendly improvements connecting the property to other parts of Town will accommodate the demand shift. 7. A continuous streetscape and multi-modal transportation network, compatible with other adjacent and planned east-west thoroughfares (i.e. West Beaver Creek Boulevard, and Urban Local Road – Main Street (central segment) is warranted for the PA-F frontage with a continuous 80’ right-of-way to facilitate shifting trends in mobility. Conditions: 1. Amend the Village (at Avon) PUD Guide as follows: B. TOTAL PERMITTED DENSITY, 6. shall be amended to strike Planning Area F from the third line and add a fourth line which reads, " Planning Area F, Residential Min%: 0%, Residential Max%: 95% Commercial Min%: 5% Commercial Max%: 95%.” ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 10 Fifth line and note added that states Minimum Commercial Gross Square Footage shall be a Minimum of 5% of the total Gross Square Footage of Planning Area F, or 1,500 sq. ft., whichever is less. 2. As part of a complete Final PUD application, the Applicant shall propose a palette of exterior building materials, including providing physical samples of such materials, shall define minimum architectural designs and features, and shall define minimum and maximum percentage use and coverage of such exterior materials for any building or structure which exceeds 48' in height. The exterior building materials, and percentage use, and architectural designs and features shall be similar to existing buildings in Avon with a building height in excess of 48' which have been erected since 2006. 3. Amend the Village (at Avon) PUD Guide, Appendix F, Illustrations 7 and 8, to revise the Urban Local Road, Main Street (eastern segment) to depict a minimum 80’ right-of-way with 6' wide minimum sidewalks on each side of the road, bicycle lanes, landscape buffers, and potential for on-street parking and/or vehicle turn lanes and bus pull offs. Denial Motion “I hereby recommend that the Avon Town Council deny the application for a Preliminary PUD Amendment, File PUD 17001, citing the following findings: 1. The Application provides sufficient information to determine that the development application fails to comply with Avon Development Code Section 7.16.060(e)(4), Review Criteria, including: a. Criteria 1 – the PUD Amendment fails to provide an incremental public benefit compensatory to the PUD amendment request; including no improvements in open space provisions, environmental protections, or others. b. Criteria 3 - The PUD Amendment is not consistent with the Avon Comprehensive Plan as outlined in the remainder of this motion. c. Criteria 7 – the submitted materials are insufficient to determine whether the development on the subject parcel will be compatible with future uses on other properties in the vicinity. 2. The Application fails to comply with the Comprehensive Plan for the Urban Village area, with no mix of uses provided. 3. Compared to the underlying zoning of PA-F, the PUD amendment is found to be incompatible with other property in the vicinity by eliminating all commercial land use, and failing to transition from regional commercial to neighborhood commercial scaled uses. 4. Increased Building heights of up to 56’ at any point(s) within the Planning Area will create building forms that are not consistent or compatible with existing and future buildings in the vicinity. 5. Planning Areas C and Planning Area D collectively provide 40 acres that allow for 90% to 100% residential development and therefore already provide areas that are planned for and allow apartment and higher density development as a use by right.” Continuance Motion “I hereby continue the Preliminary PUD Amendment, File PUD 17001, to the March 20, 2018 meeting public hearing, pending additional information to determine conformance with the Review Criteria.” Attachments A: Cover Letter from Mauriello Planning Group, dated February 27, 2018 B: Letter addressing Review Criteria from Mauriello Planning Group, dated February 27, 2018 C: PUD Guide Modifications D: Current PUD Guide ATTACHMENT E March 6, 2018 PZC Meeting – Village at Avon Preliminary PUD /Major Amendment 11 E: PUD Development Master Plan F: Memo from Eric Heil, Town Attorney ATTACHMENT E Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com H EIL L AW TO: Avon Planning and Zoning Commission FROM: Eric J. Heil, Town Attorney RE: Village (at Avon) – Planning Area F – Preliminary PUD Amendment Application DATE: December 29, 2017 SUMMARY: This memorandum describes the legal considerations and the past and current policy regarding the requirement of “Public Benefits” for planned unit development (“PUD”) amendment applications. AVON DEVELOPMENT CODE: Avon Development Code 7.16.060(b) states the eligibility criteria for establishing a PUD, including sub-section (5) which states, “Public Benefit. A recognizable and material benefit will be realized by both the future residents and the Town as a whole through the establishment of a PUD, where such benefit would otherwise be infeasible or unlikely.” This is the provision that establishes “Public Benefit” as a review criteria for approval of new PUDs. PUD approvals are legislative acts, similar to zoning changes; therefore, the Planning Commission and Town Council have very broad discretion when reviewing PUD amendment applications. In practice, 7.16.060(1)(e) is the provision that is also applicable when PUDs are amended and the amendment creates new, different or additional impacts on the community. Staff has correctly cited §7.16.060(e)(4) as the applicable review criteria for a PUD amendment application. Due to the legislative nature of approving PUDs and PUD amendments, there is no fixed criteria for considering “Public Benefits”. General practice within the planning profession would be to consider the adopted Comprehensive Plan for the community (and other relevant adopted community policy documents) and to have some rational connection or relationship between the impacts of the proposed development application and the Public Benefit sought. LEGAL CONSIDERATIONS: Due to the legislative nature of PUD and PUD amendment approvals, the Town Council has very broad discretion when reviewing and acting upon such applications. There is no legal obligation for the Town to approve PUD or PUD amendment applications. That said, the Town consciously sought to move away from PUDs when adopting the current Avon Development Code so that the development community would have greater guidance and predictability with development review criteria. The practice in the Town of Avon since adopting the Avon Development Code in 2010 is to provide greater consideration to the specific incremental impact of a proposed PUD amendment and consider the appropriate Public Benefit based on the incremental impact and the nature of the impact. VILLAGE (AT AVON): The PUD Guide and the Development Agreement for the Village (at Avon) set the maximum residential density for the entire property, the maximum commercial square footage, and the maximum water rights consumptive use. Therefore, the proposed maximum density per acre increase for Planning Area F does not increase the overall density of the project. The existing PUD Guide and Development Agreement addressed public benefits and exactions for the overall density of the Village (at Avon). Thank you, Eric M EMORANDUM& PLANNING, LLC ATTACHMENT E Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com H EIL L AW TO: Avon Planning and Zoning Commission FROM: Eric J. Heil, Town Attorney RE: Village (at Avon), PUD Amendment: Planning Area F DATE: January 24, 2018 SUMMARY: This memorandum addresses legal aspects and limitations on the review of The Village (at Avon) PUD Amendment application for Planning Area F. Specifically, the following topics are discussed: affordable housing, public trails, parking design, exterior materials and architectural design, amended road profiles, and East Beaver Creek Boulevard (conceptual). AFFORDABLE HOUSING: The Village (at Avon) PUD Guide, I. SUPPLEMENTAL REGULATIONS, 15. Affordable Housing Plan defines the affordable housing obligations for the entire Village (at Avon) PUD. “The obligations set forth in this Section I.15 shall constitute the sole and exclusive affordable housing requirements for The Village (at Avon) and expressly supersede any affordable housing regulations set forth in the Municipal Code.” The proposed PUD Amendment does not propose to increase the overall residential density (2,400 dwelling units) or overall commercial square footage (up to 825,000 sq.ft.) of The Village (at Avon); therefore, the PUD Amendment request to increase density and building height on Planning Area F does not in itself somehow cause an increased demand for workforce housing. There is no legal basis for the Town to require or attempt to exact increased or accelerated affordable housing as a condition of approving the PUD Amendment. PUBLIC TRAILS: There was some discussion of desiring or requiring a public trail through the Planning Area F development. The Village (at Avon) PUD Guide, I. SUPPLEMENTAL REGULATIONS, 16. Provision of Certain Amenities, (b) Pocket Parks (Planning Areas P1 and P2) states that the Master Developer shall dedicate to Town pocket park, Planning Area P1, contemporaneously with the Town’s approval of the first Final Plat within Planning Area C (west of Planning Area F). P1-Parkland is depicted in green on The Village (at Avon) PUD Master Plan and stretches from Planning Area B (4 acre park dedicated to Town) and east though Planning Areas A and C, but does not cross Planning Area F. The Village (at Avon) PUD Guide, I. SUPPLEMENTAL REGULATIONS, 14. Park, Recreation and Trail Access describes parks and trails that have been dedicated and describes obligation of Developer to facilitate trail across Planning Areas I, J, P3, OS2 and RMF-2, but does not describe any trails across Planning Area F. The Developer has no obligation to provide a public recreational trail or pedestrian route across Planning Area F, therefore there is no legal basis for the Town to require dedication of a public pedestrian or recreational path through Planning Area F. PARKING DESIGN: The Village (at Avon) PUD Guide, I. SUPPLEMENTAL REGULATIONS, 16. Parking Requirements states, “Parking within The Village (at Avon) shall be in conformance with Parking Regulations set forth in Exhibit C to this PUD Guide, which shall be the sole and exclusive parking regulations applicable within The Village (at Avon) PUD . . . .” There is no legal basis for the Town to impose as a condition of approval additional parking area design requirements or restrictions. It is not possible to determine if the PUD Amendment residential density increase would cause an overall increase in parking on Planning Area F because there is no limitation on the amount of commercial square footage (other than the overall 825,000 sq.ft.) and the existing PUD Guide allows a mix of residential (at 18 DUs per acre) and commercial M EMORANDUM& PLANNING, LLC ATTACHMENT E Avon Town Council The Village (at Avon) PUD Amendment: Planning Area F January 24, 2018 Page 2 of 2 (with no limitation). EXTERIOR MATERIALS AND ARCHITECTURAL DESIGN: The requested increase in building height results in structures that are more visible throughout the area and results in increased visual impacts (using the term “impact” in a neutral manner and not to denote either positive or negative impacts). As such, the increase visual impact of the PUD Amendment can be a legal basis for imposing conditions directly related to mitigating increased impacts, such as increasing the setback for increased building height and specifying minimum exterior materials types and minimum architectural designs. There is past precedence for such requirement when the Town approved Supplemental Hotel Design Standards for Planning Area J. The Village (at Avon) PUD Guide, I. SUPPLEMENTAL REGULATIONS, 9. Supplemental Design Standards: Planning Area J Hotel, Motel and Lodge Requirements. The Town may legally impose supplemental design standards as a condition to approving an increase in the maximum building height for Planning Area F. AMENDED ROAD PROFILES: The requested increased density on Planning Area F from 18 Dwelling Units per acre to 25 Dwelling Units per acre is a potential 38.8% increase in density. It is reasonable to expect that the increased density on Planning Area F will result in increased pedestrian, bicycle and multi- modal demands. The expected increase in pedestrian, bicycle and multi-modal demands serves as a legal basis to impose a condition on approval of the PUD Amendment to increase the Main Street (eastern segment) East Beaver Creek Blvd., from 50’ to a wider right-of-way to allow for wider sidewalks and inclusion of a bike lane. EAST BEAVER CREEK BLVD. (CONCEPTUAL): East Beaver Creek Blvd. (conceptual) is a future road that would traverse Lot 1 from east to west and serve as a second connection from Main Street (conceptual). East Beaver Creek Blvd., is planned to be a 50’ wide right-of-way. Exhibit F Street Standards, A. 2. states, “The engineering, installation and construction of any road within The Village (at Avon) may, at the discretion of the Applicant, be phased. Only the portion of a road that is necessary to serve the property that is the subject of the applicable Application shall be required to be engineered, installed and constructed in connection with the development of such property; provided, however, if any such road is depicted on the PUD Master Plan to extend and continue further than such phase, the Applicant shall submit Preliminary Engineering for the extended road as a part of its Application in accordance with Section A.4(g) of the PUD Guide. [emphasis added]. The conceptual site plans depict East Beaver Creek Blvd. (conceptual) extending a short distance off Post Blvd., leaving a majority portion of the East Beaver Creek Blvd. (conceptual) street not developed along the north side of Planning Area F. Although preliminary engineering is not required as part of a PUD Amendment approval, the requirement to provide preliminary engineering for the segment of the roads to extend to the western boundary of Planning Area F should be acknowledged and the slopes and grades on the north side of Planning Area F should be considered to determine the functional alignment of the East Beaver Creek Blvd. (conceptual) road extension west from Post Blvd. to Planning Area C. Thank you, Eric ATTACHMENT E Page 1 of 1 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Virginia C. Egger, Town Manager Meeting Date: May 8, 2018 Agenda Topic: Presentation of the Eagle River Valley Housing Needs and Solutions 2018 Report INTRODUCTION Eagle County Housing Director Kim Bell Williams will facilitate the presentation of the recently completed Eagle River Valley Housing Needs and Solutions 2018. ATTACHMENTS ATTACHMENT 1 - Eagle River Valley Housing Needs and Solutions 2018 ATTACHMENT 2 – PowerPoint EAGLE RIVER VALLEY HOUSING NEEDS AND SOLUTIONS 2018 http://www.eaglecounty.us/housing/ ATTACHMENT 1 II Rees Consulting, Inc. / Willliford, LLC PREPARED BY IN TEAM WITH Willa Williford 303-818-0096 willa@willifordhousing.com IIIRees Consulting, Inc. / Willliford, LLC INTRODUCTION Purpose The Eagle River Valley Defined What is Affordable? What is the Difference Between Housing Need and Market Size? Key Findings & Policy Considerations PART I - CURRENT CONDITIONS, TRENDS, AND HOUSING NEEDS UPDATE Current Conditions Who We Are and Where We Live Trends in Housing and Job Markets Housing Demand Update What is Behind the Numbers? PART II - HOUSING SOLUTIONS Ownership Housing - Design & Development Rental Housing Development & Design Housing Tools APPENDICES Appendix A - Acknowledgements & Contributions Appendix B - Area Median Family Income & Purchase Prices Appendix C - Home Sales by Zip Code Appendix D - Methodology & Sources Appendix E - Survey Definitions of Tools 1 2 3 4 5 10 13 17 25 28 33 46 54 62 63 64 66 72 1Rees Consulting, Inc. / Willliford, LLC INTRODUCTION Purpose The goal of this report is three-fold: 1) Provide current context on people, jobs, and housing markets in the Eagle River Valley; 2) Update the housing demand calculations and projections that have been used consistently over the past 11 years; and 3) Inform housing policy and implementation by providing up to date information on what local house-holds and employers need: their housing goals and intentions, the tradeoffs they are willing to make, and solutions that are likely to be the most well received. PART I PART ONE is the Housing Needs Update, which begins with current data on the valley’s population, jobs, and the housing market. It measures the problem of workforce housing in terms of perceptions and impacts on households and provides the metrics that are the foundation for the need update. Part I concludes with the demand update calculations. PART II PART TWO provides guidance on moving forward with housing solutions: key considerations policy makers need to know, where to build housing, how to design it, appropriate price ranges, and what tools should be prioritized. This report is organized in two parts: INTRODUCTION 2 Rees Consulting, Inc. / Willliford, LLC INTRODUCTION Eagle River Valley Defined The study area is the Eagle River Valley, from Vail to Dotsero. While the entire valley is socially, economically, and geographically connected, there are three distinct market areas, which are defined as: • Up Valley, which includes the towns of Vail, Minturn, and Red Cliff. • Mid Valley, which includes Eagle Vail, Avon, and Edwards. • Down Valley, which includes Wolcott, Eagle, Gypsum, and Dotsero. Burns, Bond, and McCoy are not included. Basalt and El Jebel are covered by a separate study for the Roaring Fork Valley. INTRODUCTION 3Rees Consulting, Inc. / Willliford, LLC INTRODUCTION Incomes are typically expressed as a percentage of the median, which is abbreviated in this report as AMI (Area Median Income). The following table provides the incomes for each AMI category with the corresponding affordable price for housing, each representing the maximums for each range. Interest rates have a profound impact on housing affordability. These price points assume an interest rate of 5%. Interest rates are likely to rise going forward and a one point increase in the rate lowers the affordable purchase price for a 100% AMI household by $30,000 to $35,000. WHAT IS AFFORDABLE HOUSING IN THE EAGLE RIVER VALLEY? This report centers on an understanding of “what is affordable?” Housing affordability is a function both of the cost of housing and household income. Housing is generally considered to be affordable when the monthly payment (rent or mortgage) is equal to no more than 30% of a household’s gross income. Although there is some variation, this standard is commonly applied by federal and state housing programs, local housing initiatives, mortgage lenders and rental leasing agents. AMI %60%100%140%200% Household Income – 3 persons $48,360 $80,600 $112,840 $161,200 Max Affordable Purchase price $190,000 $316,000 $443,000 $632,000 Max Affordable Rent $1,210 $2,420 $2,820 $4,030 MAXIMUM AFFORDABLE RENTS AND PURCHASE PRICES BY AMI EAGLE VALLEY - 2017 Source: CHFA, consultant team. Full calculations are provided in Appendix C. 4 Rees Consulting, Inc. / Willliford, LLC INTRODUCTION WHAT IS THE DIFFERENCE BETWEEN HOUSING NEED AND MARKET SIZE? Housing Need Part I of this report calculates the need for additional housing based on a method pioneered by Rees Consulting, Inc and RRC Associates in the 1990’s to address the question: “How many additional housing units are needed to address housing problems and provide a sufficient labor force to sustain the economy?” This measurement is a key component of Housing Needs Assessments. It quantifies needs in two categories: “CATCH-UP” Additional housing units needed now to address existing problems “KEEP-UP” Additional units needed in the future to fill jobs Need is used for many purposes including setting of goals and objectives for housing, strategic and land use planning, allocation of resources, establishing funding sources and developing tools to comprehensively address needs. Market Size Part II provides a traditional method for analyzing housing markets used primarily by developers (private, non-profit and public), lenders and investors for specific ownership and rental housing developments. This measurement is a standard part of project-specific market studies. It represents the market from which a proposed housing development will draw its owners or renters. It is used to determine if projects are feasible and to gauge risk. Market size addresses the question: “Is there a sufficient market for the proposed units to be sold or rented?” After quantifying the total number of households that comprise the market, Part II of this report segment that market by income, household type and size, and housing and location preferences to inform decisions about location, unit type, bedroom mix, pricing and amenities. While some lenders may allow market analysts to consider in migration and population growth in estimates, a more straightforward and conservative method, like used by CHFA, considers only existing households. It is assumed that, with growth, demographics and preferences will remain much the same. In market analysis it is not necessary to consider households that might move in unless major events, like a large tech company moving into a resort community, are planned. 5Rees Consulting, Inc. / Willliford, LLC INTRODUCTION KEY FINDINGS AND POLICY CONSIDERATIONS Responding to the demand demonstrated in this re- port is a matter of local public policy, which should be driven by local goals and objectives. Creating new housing happens through a complex set of drivers and constraints including available land, land use policy, developer interest and capacity, financial fea- sibility, and local subsidies and requirements. The high cost of taking no action on workforce housing has consequences for individuals and families, the economy, civic engagement, and overall community character and sense of genuine place. When setting policy goals and direction for housing locals, communities rarely target achieving 100% of the catch-up and keep-up demand estimates, nor are resources likely available to achieve 100% of the gap. Rather, it is incumbent upon policymakers to use the data in this report to set goals that are an appropri- ate blend of aspirational, attainable, and respon- sive to community values and vision. Making any progress, or just staying even, in producing housing affordable for the local workforce in a market with gaps as large as those found in the Eagle River Valley requires a consistent, incremental, multi-pronged approach. The communities of the Eagle River Valley have many significant accomplishments in the realm of workforce housing, and renewed commitment and continued work are essential moving forward. The communities that make up the Eagle River Val- ley are well-positioned to work on housing goals and strategies that are tailored specifically to individual communities, as well as to collaborate on region- al solutions. Both local and regional approaches are warranted and necessary to create diverse and long-lasting housing solutions for the local work- force. Since the end of the recession, around 2011, jobs and population have been growing much more rapidly than housing inventory, and with that has created many challenges: • frustration for employees seeking housing, • employers facing unfilled positions, high turnover, higher training costs, and lost productivity, • precipitously increase in home prices, well beyond the means of most local residents, and • extremely low vacancy rates, resulting in limited choices and rising costs for renters. If forecasts prove accurate, these tensions are poised to increase, with about 7,150 new jobs coming to the Eagle River Valley by 2025. Mid valley is anticipated to have the most new jobs, but up valley is not far behind. If the economy remains strong and and no new housing is created, these growth pressures will translate into higher numbers of unfilled jobs and continued rapid escalation of housing prices. Another approach is to create new housing for the additional employees and their families who fill these jobs. According to Office of State Demography projections, these new households are anticipated to live more often in mid valley and down valley markets, adding to the eastbound morning commute pattern. These assumptions align with recent growth patterns and future opportunities, and policymakers are poised to make decisions that can influence the course of future housing growth. Housing Need KEY FINDINGS AND POLICY CONSIDERATIONS 6 Rees Consulting, Inc. / Willliford, LLC INTRODUCTION Ownership Housing Based on the conclusions drawn from the resident survey, policy makers should keep the following pri- orities and considerations in mind when shaping pol- icy strategies around home ownership housing: • Ownership housing in proximity to work has many tangible and intangible benefits associat- ed with creating a sense of place and community, stability for school children and employers, year- round contributions to the economy, decreased commute times and increased volunteerism. • Local households, both owners and renters, have an overwhelming desire to remain or become homeowners, regardless of income. • A diversity of attached and detached housing product is needed, with a range of price points, upgrade options and amenities. • Affordability is the key obstacle for locals seeking to buy in the Eagle River Valley. Numerous tools will be needed to overcome the affordability gap for most locations and product types. • Affordability and location are the highest priori- ties for buyers. If homes are located in desirable communities and priced affordably, buyers will make tradeoffs on unit type and size. Regardless of where in the valley buyers are seeking to live, community character is the most important lo- cation attribute local households consider – un- derscoring the need to integrate housing efforts in comprehensive community planning and that preserves and enhances sense of place, locals or family-orientation, social opportunities, and proximity to services and entertainment. • Given the significant gap between the market and what locals can afford, deed restrictions are a necessity for most unit types and price points. Fortunately, deed restrictions are widely accept- ed by consumers. • One third of current homeowners would like to move within the valley in the next five years. If an owner buys a new/different residence and their current free market home is purchased by second home owner or inventor for short term rentals, there is no net improvement in the rela- tionship between supply and demand for local residents. • Moving owners into new homes could be a component of a housing strategy that would support mixed income developments and fo- cus on building neighborhoods. • Preserving the homes that will be sold as pri- mary residences when providing new home op- portunities could be considered, including buy downs or other incentives to place deed restric- tions on homes being sold. • Also, owners of deed restricted units could be given priority for new ownership opportunities, which would create movement in the deed-re- stricted inventory. • Availability of funds for down payment is key to making sure that renters with the desire to pur- chase a home and stay in the Eagle River Valley are able to do so when a home affordable to them becomes available. For this reason, local communities should continue to support the Ea- gle County down payment assistance program, which has a strong track record in assisting local households. KEY FINDINGS AND POLICY CONSIDERATIONS “A key to addressing the housing challenge is political will.” -2018 Survey Respondent 7Rees Consulting, Inc. / Willliford, LLC INTRODUCTION Rental Housing While most renters in the Eagle Valley would prefer to own, rental housing is an important component of a healthy housing ecosystem. Most renters will not be able to afford ownership in the near term, and rental housing is needed for new employees recruited into the community. Building additional rental housing should continue to be part of local housing policy goals, especially in consideration of the current ex- treme low vacancy, escalating rental rates, and high levels of cost burden among renters. • Up valley and mid valley should be the priori- tized for new rental development, as 82% of cur- rent renters prefer those locations. • Renters, especially those with low wages are price sensitive, and proximity to work is their most important locational attribute. Jobs within the market area and what rental price points are appropriate for households making those wag- es should be considered when siting new rental housing. Housing Tools Both local and regional approaches are warranted and necessary to create diverse and long-lasting housing solutions for the local workforce. The communities that make up the Eagle River Valley are well positioned to work on housing goals and strategies that are tailored specifically to individual communities, as well as to collaborate on regional solutions. Part I reported on the nearly unanimous agreement among employers and residents that workforce housing is a problem in the Eagle Valley, and those sentiments carry forward in employers and resident’s overall enthusiasm for tools that contribute to workforce housing solutions in Part II. When considering local and regional tools and how they could be formulated into housing strategies, policymakers would be well-advised to begin with the tools that received the most support from employers and residents: KEY FINDINGS AND POLICY CONSIDERATIONS “We need the County - Commissioners and Staff - to take a leadership role in addressing this 'perfect storm', with innovative approaches, and with commitment to seeking partnerships and solutions that will, year-by- year, bridge the gap in attainable, sustainable housing. This 'housing' must meet the needs of year-round employees and entrepreneurs in our valley - not just seasonal workers.” -2018 Survey Respondent 1. Providing town/county land for workforce and local residents’ housing. 2. Providing public financing through the towns, County, or housing authority. 3. Fast track processing of land use proposals that include workforce housing. 4. Towns or County taking the lead in building housing, which could be as developer or as lead on public/private partnerships. 5. Inclusionary housing, which requires new residential development to contribute to the workforce housing inventory. 6. Commercial linkage, which requires new commercial development to contribute towards workforce housing based on the need for housing for the employees of the new jobs generated. 8 Rees Consulting, Inc. / Willliford, LLC INTRODUCTION These tools represent a balanced mix of funding, partnerships, incentives, and regulations. They are some of the more aggressive tools in the affordable housing toolkit, which reflects the urgency of the is- sue and a good level of knowledge and acceptance of these tools by residents and employers. Of particu- lar note is the desire for local municipalities and the County to lead housing efforts. Local government is a key player in all six of the most frequently supported strategies. Perhaps because they experience the day to day challenges of hiring and retaining employees in the current jobs/housing environment, employers rated more strategies highly, including: • Fee waivers for water, sewer, and other impact fees. • Excise tax on short term rentals. • Density bonuses for inclusion of workforce hous- ing. While considered slightly lower priority by residents, these tools may be appropriate components of the housing strategies for some communities. It is clear that local communities would be wise to create some momentum and build upon success- es before seeking any dedicated funding streams through a new tax (with the possible exception of short term rental excise tax). Property tax exemp- tion, sales tax, and property tax make up three of the five least supported strategies. The tools chapter also provides data on where among the three market areas the tools received more and less support, which should be helpful as communities consider local and valley wide housing strategies. Several themes point toward the relevan- cy of a valley-wide housing strategy: • Several tools including providing town/Coun- ty land and inclusionary zoning received strong support valley-wide. • Support for housing tools was strong across households of all incomes ranges. • Learning best practices from each other, devel- oping regional approaches, and strengthening cooperation were consistently expressed in the open-ended questions. • Partnerships with employers offer promising op- portunities. Both small and large employers ex- press interest in investing in workforce housing and expanding the housing opportunities they currently offer. Communities within the valley have a long history of successful workforce housing initiatives and many have used different housing tools at different times, including public private partnerships, land trades, annexation agreements, inclusionary housing, com- mercial linkage fees, and leverage of local funds to match outside investments in housing. There is op- portunity to build upon these successes (as well as incorporate lessons learned) to create a more consis- tent, unified approach going forward. KEY FINDINGS AND POLICY CONSIDERATIONS 9Rees Consulting, Inc. / Willliford, LLC PART I Current Conditions, Trends, and Housing Needs Update PART I 10 Rees Consulting, Inc. / Willliford, LLC PART I What Housing Problem? CURRENT CONDITIONS “Do you feel that the availability of housing that is affordable for the workforce in the Eagle River Valley is…” We asked survey respondents about their perceptions of housing as a problem, by asking: Their response was emphatic: it’s a big problem. • A remarkable 91% of household survey respondents felt that the lack of availability of housing that is affordable to the workforce in the Eagle River Valley is one of the most serious problems or the most critical problem in the region. • And, 85% of employers felt that the lack of availability of housing that is affordable to the workforce in the Eagle River Valley is one of the most serious problems or the most critical problem in the region. • No employers responded that it is “not a problem” or “a lesser problem.” Source: 2018 employer survey, 2018 household survey. There is strong consensus valley-wide that housing affordability is a serious or critical problem. A full 99% of renters feel that this is one of the more serious or the most critical problem in the region, and 84% of owners feel the same way. 11Rees Consulting, Inc. / Willliford, LLC PART I Source: 2018 household survey Mid valley respondents where slightly more likely to perceive the problem as “more serious” or “most critical” than their up valley and down valley neighbors; 94% compared to 89% for up valley and 88% for down valley. Source: 2018 household survey. CURRENT CONDITIONS "The most common concern you hear from regular blue collar hard working adults like myself is, how bad the housing is here. It’s time to make a change." -2018 Survey Respondent 12 Rees Consulting, Inc. / Willliford, LLC PART I Perceptions of severity have some variation by income: combined responses for “serious” and “most critical” range from between 82% and 97%, with lower income households tending to have higher severity ratings. Interestingly, 92% of households over 200% AMI also felt it was “serious” and “most critical.” Source: 2018 household survey CURRENT CONDITIONS "Frustration with housing continues to grow and moved in a negative direction from 2015-16. Negative opinions about housing are higher than ever found in the history of conducting the survey. Almost three out of four businesses feel that the housing situation negatively impacts their ability to hire and retain employees and this issue was mentioned frequently when asked about additional resources that are needed." -Vail Valley Partnership: 2017 Workforce Survey Report 13Rees Consulting, Inc. / Willliford, LLC PART I WHO WE ARE AND WHERE WE LIVE Household Characteristics Source: 2018 household survey Source: 2018 household survey WHO WE ARE AND WHERE WE LIVE of the Valley's Year-Round Households are Located Here Homes Occupied Year-Round DOWN VALLEY 34% 90% of the Valley's Year-Round Households are Located Here Homes Occupied Year-Round MID VALLEY 45% 61% of the Valley's Year-Round Households are Located Here Homes Occupied Year-Round UP VALLEY 21% 41% 14 Rees Consulting, Inc. / Willliford, LLC PART I Looking at the demographics of the Eagle River Valley, some of the distinctions and similarities between the three market areas begin to emerge, as well as the reasons the workforce housing shortage is being felt so acutely at this time. Across the valley, the average household size is 2.9 people. Each household has an average of 1.8 employed persons, and each employed person has an average of 1.24 jobs. These metrics are used throughout the demand calculations. Mid valley is home to the most year-round residents, however, down valley has been adding year-round households more rapidly since 2010. The demand for second homes and the percentage of homes occupied by full time residents is one of the defining distinctions between the three markets. The three market areas have a number of distinctions with regard to household composition and age of residents. • Mid and down valley are home to a higher percentage of households with children and adults in the prime working years of 30-64. • Looking at the presence of children in the household provides a striking contrast: only 17% of households up valley have children present, while almost half (48%) of down valley households include children. • Down valley has larger households, especially those with four or more individuals. • Up valley is home to proportionally more adults living alone, roommates, millennials, individuals over 65 and extended/multigenerational households. • All three market areas have similar 22-26% of couples without children. WHO WE ARE AND WHERE WE LIVE Source: 2018 household survey I dislike the terms "employee housing" and "workforce housing;" we are the people who choose to live here year- round and make the valley have viable communities. We are more than employees -- we are parents, teachers, business owners, service providers; we are raising families. -2018 Survey Respondent “And it doesn't matter if you are up or down valley anymore -- we would be paying the same mortgage in Eagle or Gypsum that we are currently paying in Eagle-Vail but would also be commuting our children and ourselves daily, adding to I-70 traffic and our monthly expenses.” -2018 Survey 15Rees Consulting, Inc. / Willliford, LLC PART I Incomes and Tenure Mid and down valley have similar distribution of incomes, while up valley is home to a higher proportion of households with incomes below 60% AMI and above 200% AMI. Source: 2018 household survey. The majority of renters (58%) have incomes below the median income. As incomes increase, households become more likely to own. About 23% of renters have incomes at or above 140% AMI. These households may have formerly been considered “renters by choice,” but may be priced out of homeownership in the current market. WHO WE ARE AND WHERE WE LIVE Source: 2018 household survey. 16 Rees Consulting, Inc. / Willliford, LLC PART I Hispanic households make up about a third of year-round residents in mid and down valley, while the percentage of Hispanic households in up valley is much smaller at only 13%. Ethnicity Source: 2018 household survey. Source: 2018 household survey. WHO WE ARE AND WHERE WE LIVE Rent Own Down Valley 34% 66% Rent Own Mid Valley 46% 54% Rent Own Up Valley 62% 38% Rent Own OVERALL 45% 55% Hispanic Non- Hispanic Down Valley 30% 70% Hispanic Non- Hispanic 34% 66% Hispanic Non- Hispanic Mid Valley 13% 87% Up Valley 17Rees Consulting, Inc. / Willliford, LLC PART I TRENDS IN HOUSING AND JOBS MARKETS Housing Shortage and the Economy Source: QCEW 2016 The housing shortage negatively impacts employers in terms of employee retention, business development and growth. In 2017, unemployment in Eagle County was 2.2%, the lowest level since 2000. This situation leaves very few employees living in the valley to fill positions. High housing costs and a predominance of low wage, tourism industry jobs exacerbate the challenge because employers have difficulty attracting and retaining employees from beyond the Valley. • An estimated 1,600 jobs remained unfilled, heading into the peak winter season of 2017/2018. • Jobs are remaining unfilled for longer periods of time. Last year 43% of jobs remained open for more than a month, compared to 18% of jobs five years ago, according to the Vail Valley Partnership - 2017 Workforce Survey Report. • As is common in resort areas, the largest employment sectors are accommodations, food, and retail. • Eagle River Valley employees have a weekly wage $220 lower than employees in Colorado overall. • The fastest growing occupations will continue to be in the accommodations, food service, and retail sectors, including waiters and waitresses, retail sales clerks, food preparation, and housekeeping. These jobs typically pay wages below $31,000/year, or about 50% AMI for a single person. “Those of us keeping this valley operating working in retail, hospitality, and ski resort operations do not make a huge income. Yet, without us, the valley wouldn’t survive. Keep us here.” -2018 Survey Respondent “I came here for adven- ture, opportunity, and in hopes of making Vail Valley my home. In four years, I’ve been hit with the harsh reality that a single adult has no chance to truly make a home here. I have no children and work tireless hours to simply pay rent.” -2018 Survey Respondent 18 Rees Consulting, Inc. / Willliford, LLC PART I An estimated 1,200 employees in the Eagle River Valley intend to retire in the next five years, and most of these retirees will stay in the valley. New employees needed to fill those jobs will struggle to find housing they can afford. Additional homes will be needed to house new employees recruited to fill these jobs as they become available. For Sale Housing Market The last full Housing Needs Assessment was completed in 2007. Since that time, median household income has increased 6%, while home prices increased 20%. Source: 2007 Housing Needs Assessment, MLS Second homeowners and short-term rental investment buyers currently compete with year-round residents for homes at all price points affordable to locals. With continued scarcity of housing throughout the valley, all three markets are likely to see continued price increases and decline in homes occupied year-round. It is very difficult to buy a home in Eagle County with an income derived in the Eagle River Valley. Based on survey data, about 5,000 local households with income below 140% AMI ($113,000 or less for a three-person household) would like to purchase a home within the Eagle River Valley. But only 64 homes were listed for sale at prices they can afford in January of this year. The majority of these listings were condos, likely to be purchased by second home or investor buyers. There is an inventory surplus in of homes for sale over $600,000, which serves households over 200% AMI. Buyers of these homes will predominately be from out of the area. TRENDS IN HOUSING AND JOBS MARKETS TRENDS IN HOUSING AND JOBS MARKETS 19Rees Consulting, Inc. / Willliford, LLC PART I CURRENT MLS LISTINGS AND LOCAL HOUSEHOLDS WHO WANT TO PURCHASE # of Current MLS Listings AMI Range Max Affordable Purchase Price Up Valley Mid Valley Down Valley Total Listings House- holds Want to Buy 60% or less $190,000 0 0 1 1 1,440 60-100% AMI $316,000 1 4 7 12 2,110 100-140% AMI $443,000 7 13 31 51 2,120 140-200% AMI $632,000 12 22 43 77 1,550 Greater than 200% AMI -199 218 68 485 1,070 Total 219 257 150 626 8,290 Source: MLS, household survey, consultant team A local household would need an income of about $152,000 (or 236% of Area Median Income) to afford the median priced home that sold in 2017. Source: MLS, CHFA, consultant team Last year, median sales prices exceeded what is affordable to a household with median income for all areas and home types except condos in the down valley. TRENDS IN HOUSING AND JOBS MARKETS TRENDS IN HOUSING AND JOBS MARKETS 20 Rees Consulting, Inc. / Willliford, LLC PART I Source: MLS, consultant team Scarcity is a significant factor in the high cost of housing. Of the 1,300 homes sold last year, only 10% sold at prices that would be affordable to a household with income of $80,600 or lower (100% AMI). Up valley, only nine condos in Vail and four single family homes in Red Cliff were affordable for incomes of 100% AMI. Mid valley, all homes sold that would be affordable to 100% AMI or lower were condos, and single-family homes were distinctly unaffordable with a median price approaching $2 million. Down valley there was a more balanced mix of condos, duplexes, townhomes, and single-family-homes, however, only 21% of all homes sold down valley were affordable to 100% AMI households. Number of Homes Sold - 2017 Source: MLS TRENDS IN HOUSING AND JOBS MARKETS 21Rees Consulting, Inc. / Willliford, LLC PART I It is similarly difficult to rent a home. Over the past five years, vacancy rates have been dropping, and rent levels rising. With vacancy levels now approaching zero, the rental market is no longer functioning effectively. Employees who are new to the area, or people needing to move based on changes in their housing needs have great difficulty finding a home to rent. Landlords experience low turnover and have little incentive to make repairs and improvements. Such scarcity has driven prices more rapidly than wage increases. In 2007, average rent for all unit types was $1,150. Currently, average rent is $1,700, an increase of 48%. (Both figures exclude utilities, which also impact affordability.) Incomes have only increased 6% over that time period. This dynamic is driving up cost burden, especially among the lowest income renters. Most the rental housing reported on this trend graph has deed restrictions that place a cap on rents. As the economy has improved, vacancy rates have plunged, but rents have only increased modestly, due to the deed restrictions. In free market rentals, low vacancy rates are pushing rapid price increases. For Rent Housing Market With rental inventory limited, renters of all incomes are competing for the same units, and the lowest income renters are only paying about 19% less than the highest income renters. Employees in a household need to work about 120 hours a week, or three full time jobs, at minimum wage for the average rent and utility payment to be considered “affordable.” Mid valley has the highest average free market rent, likely due to a higher number of households renting larger single-family homes. Overall, the gap between free market and deed restricted in the region is about 20% or approximately $330/month. Source: Polar Star Market Reports 2010 to 2017 TRENDS IN HOUSING AND JOBS MARKETS TRENDS IN HOUSING AND JOBS MARKETS 22 Rees Consulting, Inc. / Willliford, LLC PART I Source: 2018 household survey, December 2017 Polar Star Market Report The gap between market and deed restricted is about $350/month for two- and three-bedroom homes. TRENDS IN HOUSING AND JOBS MARKETS Source: 2018 household survey, December 2017 Polar Star Market Report TRENDS IN HOUSING AND JOBS MARKETS “The cost of rent is absurd. People are paying $1000+ a month in some units to rent an air mattress on a floor in a closet with no windows, no parking, utilities not included, you get the picture.” -2018 Survey Respondent 23Rees Consulting, Inc. / Willliford, LLC PART I Commuting The mismatch between where local workers live and where jobs are located requires much of the workforce to commute. • About 9% of the workforce commutes from outside of the valley; • Vail has a jobs/housing balance of approximately 6,000 jobs, requiring at least that number of employ- ees to commute into Vail from other parts of the valley; • Mid valley has a more balanced housing/jobs mix, with only about 600 more employees than jobs; • Down valley plays a significant “bedroom community” role, housing more workers than there are jobs. TRENDS IN HOUSING AND JOBS MARKETS 24 Rees Consulting, Inc. / Willliford, LLC PART I Housing Shortage and Cost Burden The tension between high housing costs and low wages is hurting individuals and families in the community. As households stretch to find and retain housing in a tight market, the proportion of their income spent on housing increases, leaving less for food, healthcare, childcare, transportation, and retirement savings. When a household spends more than 30% of income on housing, they are considered “cost burdened.” The term “severely cost burdened” is used when more than 50% of household income is devoted to housing costs. • Approximately 3,800 households (22% of all households) in the Eagle Valley currently live under the duress of cost burden. • The percentage of households experiencing cost burden has decreased since 2007. • When asked about their housing plans, 13% of survey respondents reported that they intend to leave the Eagle River Valley in the next five years, which may be an indicator of the trend observed by realtors and property managers that residents who are ready to own a home, start a family, or “step up” in their career may choose to leave the community. Source: 2007 Housing Needs Assessment, 2018 Household Survey Not surprisingly, cost burden disproportionately impacts renters and lower income households. About 64% of all households under 60% AMI are cost burdened; a third are severely cost burdened. As incomes increase, the likelihood of cost burden decreases. Of renters, 38% are cost burdened, compared to 10% of owners. Renters are also more frequently severely cost burdened; 10% compared to 3% of owner households. The problem of cost burden exists valley wide. It is most prevalent in mid valley where about 2,000 households (about a quarter) are cost burdened. About 21% of down valley households are cost burdened and 19% of up valley households. Source: 2018 Household Survey TRENDS IN HOUSING AND JOBS MARKETS 25Rees Consulting, Inc. / Willliford, LLC PART I Eagle County has been consistently using the “catch up/keep up” method of calculating housing demand over the past decade. In this report, the approach is refined to provide demand calculations and market gaps for the three market areas within the Eagle River Valley, as well as the valley in total. Estimates are provided for the number of housing units that are needed to support job growth, sustain employers and employees, and stabilize housing prices. “CATCH-UP” NEEDS the number of housing units needed to address current deficiencies in housing calculated by considering overcrowding, unfilled jobs and in- commuting employees who want to live in Eagle County “KEEP-UP” NEEDS the number of units needed to keep up with future demand for housing based on projected employment and population growth and the requirement to replace retiring employees. Keep up demands are projected for 2020, 2025, and 2030. The further out these projections look, the more prone they are to change due to unforeseen conditions. This demand update provides data by region, AMI, tenure, and for the valley as a whole. This summary table below includes homes that the free market will provide, and homes for which subsidies, incentives, and/or regulations will be required. 2018 2020 2025 2030 Catch-up (Existing Needs) Unfilled Jobs 1,100 Rental Market 310 In-Commuters 560 Overcrowding 800 Total Catch-up 2,780 2,780 2,780 2,780 Keep Up (Existing Needs) New jobs 1,030 2,350 3,870 Retiring employees 200 770 1,320 Total Keep-up 1,250 3,120 5.190 Total Housing Units Needed 2,780 4,030 5,900 7,970 ESTIMATED HOUSING DEMAND - EAGLE RIVER VALLEY - 2018 THROUGH 2030 HOUSING DEMAND UPDATEHOUSING DEMAND UPDATE 26 Rees Consulting, Inc. / Willliford, LLC PART I Own/Rent Mix Both ownership and rental housing that is affordable for the local workforce and other residents is needed. The gap estimates below use a mix of 55% ownership and 45% rental, generally reflecting the current own/rent composition in the community. For homes that will be built to address local needs, the ownership/rental mix is not exact, but in practice largely a function of the community’s desired direction, housing goals, opportunities and private market performance. While the rental market rebounded more quickly post-recession than the ownership market, both have now sufficiently recovered to warrant additional development. Location The total number of housing units needed are allocated by area based on owners and renters first choice for where they want to live in the Valley. This approach: • Is most responsive to market demand and the preferences of residents; • Recognizes the extensive cross commuting that exists – although jobs location is closely aligned with where residents most want to live (see the Housing Solutions section); and • Improves the housing/jobs balance among new jobs and workers coming into the Valley. While the location of jobs is one factor that influences where employees want to live, others like schools, shopping, and community and neighborhood character are key determinants of location preferences. One weakness to this approach is that it doesn’t incorporate land constraints, development opportunities, or the level of subsidies required in different market areas. Policy makers working regionally could decide to re- allocate workforce housing production goals with these considerations in mind. Gap The market will address a portion of both ownership and rental housing. The income levels that the market now serves vary within the Eagle River Valley as shown on the following table. By 2020, the total housing projected is 4,030 homes. We anticipate a portion of those homes will be supplied by the free market. The gap not served by the market will total around 2,450 units– about 1,220 for sale and 1,230 rental units, very close to a 50/50 split of for sale and for rent. Monitoring market conditions and making changes, if needed, to the forecasting model in the income levels served by the market would generate changes in the owner/renter mix and overall workforce housing gap moving forward. HOUSING DEMAND UPDATEHOUSING DEMAND UPDATE "Housing for year round working families is so expensive, that when we retire within the next 5 years, we cannot afford to stay in the area where we have lived for the past 28 years and raised our family, who have grown and moved away due to cost of living." --2018 Survey Respondent 27Rees Consulting, Inc. / Willliford, LLC PART I HOUSING DEMAND UPDATE For Sale Housing Gap by Region and Income – 2020 Owner Units by AMI Max Affordable Price Up Valley Mid Valley Down Valley Total Where Owners Want to Live 26%39%35%100% <60%$253,000 48 72 66 186 60.1% to 100%$316,000 122 180 164 466 100.1 to 140%$443,000 173 256 234 663 140.1 to 200%$632,000 135 200 183 518 Over 200%>$632,000 90 134 122 346 Gap - # for sale units 480 510 230 1,220 Rental Gap by Region and Income - 2020 Rental Units by AMI Max Affordable Rent Up Valley Mid Valley Down Valley Total Where Renters want to live 42%40%18%100% <60%$1,200 212 202 91 505 60.1% to 100%$2,020 228 217 98 543 100.1 to 140%$2,820 143 136 62 341 140.1 to 200%$4,030 95 91 41 227 Over 200%>$4030 73 69 31 174 Gap - # of rental units 580 560 90 1,230 Total Gap 1,060 1,070 320 2,450 *Totals are rounded to the nearest 10. Key Gap - Market does not provide 100 Blend - Market partially provides 100 Market provides 100 28 Rees Consulting, Inc. / Willliford, LLC PART I The estimates for housing demand are composed of a variety of assumptions, some quite conservative, others more aggressive. When considered in aggregate, they represent a balanced picture. However, the reality of these projections can change rapidly, as market conditions fluctuate. For that reason, the consultant team has provided Eagle County Housing and Development Authority with a spreadsheet to do annual updates that reflect actual job growth. Variations in the economy will most certainly occur between now and 2030, and the projections for that timeframe should be refreshed frequently. The full census in 2020 will also provide a good opportunity to update these assumptions and projections. This section provides a brief explanation of each assumption used in the demand update. The full description of sources and methods can be found in Attachment D. WHAT IS BEHIND THE NUMBERS? Unfilled Jobs About 1,050 homes are needed to fill the estimated 2,470 jobs that remained unfilled during the peak winter hiring season this year. Unfilled Jobs Assumptions & Units Needed Unfilled jobs (Dec/Jan 2018) 2,470 Jobs per worker 1.24 Employees per household 1.8 Housing Units Needed 1,100 Functional Rental Market Availability of rental housing is so low that the market does not function properly: • renters have difficulty moving from one unit to another as their circumstances change, • rents have been increasing at rates much faster than incomes, and • vacancy rates are less than 1%. The lack of a functional rental market makes it very difficult for new employees to find housing when hired to support an expanding economy. A vacancy rate of 5% is generally considered a balanced market in mountain communities. At this vacancy level, it tends to be financially feasible to own and operate rental units, and unit availability is typically adequate to provide choice for renters and stabilize rental rates. To increase the vacancy rate to 5%, approximately 310 additional rental units are needed. Rental Market Assumptions & Units Needed Number of existing rental units - 2017 7,660 Number with 5% vacancy rate 7,970 Housing Units Needed 310 29Rees Consulting, Inc. / Willliford, LLC PART I Overcrowding An estimated 2,670 households in the Eagle River Valley are living in overcrowded conditions. Typically, an increase in the supply of workforce housing equal to about 30 percent of the number of overcrowded units will largely address overcrowding to the extent practical, given consumer choices and cultural preferences. Overcrowded Assumptions & Units Needed Overcrowded units 2,670 % need to reduce overcrowding 30% Housing Units Needed 800 New Jobs The single largest driver of local workforce housing demand is new homes to keep up with estimated job growth. The following table includes numerous assumptions and estimates to identify the number of housing units needed over the next two, seven, and twelve years. As stated above, these can be kept up to date by the Eagle County Housing and Development Authority using the consultant team spreadsheet. New Jobs Assumptions & Units Needed 2020 2025 2030 Increase in Jobs over 2017 2,304 5,250 8,643 Jobs per Employee 1.24 1.24 1.24 New Employees 1,858 4,234 6,970 Employees/household 1.8 1.8 1.8 Housing Units Needed 1,030 2,350 3,870 In-Commuters About 9% (2,600) of all employees are now commuting into the Eagle Valley for work. Based on employer estimates, about 39% (1,010) of employees would move to the valley if affordable housing options were available. This generates demand for an additional 560 units to accommodate employees who already work in the region. In-commuters Assumptions & Units Needed Number of in-commuters 2,600 Employees who would move 1,010 Employees/household 1.8 Housing Units Needed 560 WHAT IS BEHIND THE NUMBERS? 30 Rees Consulting, Inc. / Willliford, LLC PART I Retiring Employees About 110 homes are needed each year to provide housing for employees who will fill the jobs vacated by approxi-mately 240 employees anticipated to retire each year in the Eagle River Valley. Most retiring employees intend to stay in the community post retirement. For those who intend to move, it is unlikely their homes will be affordable to the employees needed to replace them. Retiring Employees Assumptions & Units Needed # of employees to retiring annually 240 Jobs/employee 1.24 Employees/household 1.8 Housing Units Needed Annually 110 WHAT IS BEHIND THE NUMBERS? 31Rees Consulting, Inc. / Willliford, LLC PART II PART II Housing Solutions 32 Rees Consulting, Inc. / Willliford, LLC PART II Part II provides information for use in the planning, design and development of housing in the Eagle Valley. It exam-ines the type, size and price of home residents prefer as well as location preferences and neighborhood considerations to support the selection and planning of sites for housing development. It consists of three sections: • Ownership Housing Design and Development • Rental Housing Design and Development • Housing Tools These sections answer the questions: 1. Where should housing for locals be built? 2. How should it be designed? 3. What pricing is appropriate? 4. What tools are most likely to be successful? 33Rees Consulting, Inc. / Willliford, LLC PART II OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT Market Size The current potential market for homeownership in the Eagle Valley consists of approximately 8,290 households. These estimates are based on residents who indicated they want to move within the Eagle River Valley within the next five years. They represent the market from which ownership projects must draw buyers, and are distinct from the esti- mates of housing need presented in Part I. • About two-thirds are renters who want to move into ownership; and • Roughly one-third are owners who want to buy a different home. Potential Homeownership Market by Own/Rent Own Rent Overall Total # of Households, 2017 9,350 7,650 17,000 % want to move into a different home within the Eagle River Valley in 5 years 34%75%53% # want to move into a different home within the Eagle River Valley in 5 years 3,180 5,810 9,010 % want to own 99%89%92% # want to own 3,150 5,170 8,290 Source: 2018 household survey Three-fourths of renters want to move within the valley in the next five years and, of these, nearly 90% want to own. The percentage who want to move into ownership is high compared to the 65% of households that owned homes in 2007, and much higher than is realistic given affordability and down payment availability, which are examined later in this section. The extremely limited availability of rental housing and escalating rents in recent years likely contributed to the increased desire for ownership. Most owners (66%) want to stay in their current residence although about one-third want to buy a different home. If more homeownership opportunities are provided, more choices and movement within the ownership market would be an overall positive. However, there is a challenge for the year-round resident housing supply, because homes cur-rently occupied by local residents are likely to be sold to second homeowners, see Policy Considerations. Decisions about the provision of homeownership opportunities – number of units, location, unit type, amenities and pricing, will depend on policy and developer decisions as to which segments of the potential market for homeowner- ship should be the focus. OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT "My partner and I are both year-round public service employees. […] Eagle County is not a place that facilitates young couples looking to build a future with its current housing issues. Unless this changes, we might have to search for employment elsewhere." -2018 Survey Respondent 34 Rees Consulting, Inc. / Willliford, LLC PART II Tradeoffs in Location/Price/Size/Type Potential homebuyers were asked to rank the importance of four considerations when purchasing a home – price, lo-cation, type and size, in light of the need for trade-offs due to expensive land, limited sites and high construction costs. • Location - a home in the community where you most want to live • Price - a home that is the most affordable option for the minimum size you need; the best value • Size - space is key; you would choose a larger home that might require you to share walls, like a town home, rather than a smaller single-family home. • Type - Type is an important consideration if you would choose to live other than where you prefer to buy a single-family house rather than a condominium or townhome A key finding is that type of home and size of home is relatively unimportant for potential buyers compared to location and price. This suggests that there is flexibility in terms of the type of units to be developed in response to demand. If priced appropriately and located where desired, condominiums and townhomes may be acceptable to many who prefer to buy a single-family house. If housing cannot be developed where potential buyers want to live or prices are not considered to be a good value, it will be more important to provide the type of units that buyers most want. Importance by Own/Rent 1=most important; 4=least important Own Rent Location 1.84 1.94 Price 2.04 1.63 Size 2.95 3.08 Type 3.17 3.35 Source: 2018 household survey OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT 35Rees Consulting, Inc. / Willliford, LLC PART II Location – Where Owners Now Live and Want to Live Source: 2018 Household Survey Most owners live in the area of the valley that is their first choice. This is especially true up valley where over 90% of owners are living where they most want to live. Nearly 10%, however, would prefer mid valley. Of mid valley residents who would rather live elsewhere, most prefer up valley. In contrast, more down valley owners would like to live in mid valley than up valley. Where Owners Want to Live by Where They Now Live Shading denote residents who live where they most want to live. Live Now Want to live (first choice)Up Valley Mid Valley Down Valley Up Valley 91%24%7% Mid Valley 9%70%16% Down Valley 0.0 6%77% Total 100%100%100% Source: 2018 household survey Individual communities show: • Proportionately more owners want to live in Vail and Minturn; • Slightly fewer want to live in Edwards; • In Eagle, preferences are in line with the current condition with about one-fourth of owners wanting to and now living there. OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT of the Valley's Owners Live Here of the Valley's Owners Want to Live Here DOWN VALLEY 41% 35% of the Valley's Owners Live Here of the Valley's Owners Want to Live Here MID VALLEY 45% 39% of the Valley's Owners Live Here of the Valley's Owners Want to Live Here UP VALLEY 14% 26% 36 Rees Consulting, Inc. / Willliford, LLC PART II Location Characteristics Up valley appeals most to households without children – about 60% are singles living alone, couples without kids and roommate households. Mid valley appeals to a broad mix of households. Down valley is home to relatively more families – over 60% of owner households living there include at least one child. Location – Where Owners Now Live and Want to Live (cont’d) OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT • In neighboring Gypsum, however, proportionately more owners reside there than desire. These findings suggest location preferences are based largely on community rather than area, at least with regards to down valley. Where Live and Want to Live by Town Where do you now live in or near Now Live 1st Choice Difference Vail 9%19% Minturn 3%6% Eagle Vail 8%8% Avon 9%7% Edwards 27%23% Eagle 23%24% Gypsum 13%8% Source: 2018 household survey. Note: Redcliff, Wolcott, and Dotsero excluded due to small sample size. 37Rees Consulting, Inc. / Willliford, LLC PART II Location Attributes Homeowners in the Eagle Valley rate community character, defined as “locals or family-oriented, social opportunities, entertainment, restaurants, etc.” as their top consideration when choosing where to live, higher than proximity to work, which is at the top of the list among renters. • Proximity to work is the second highest consideration for homeowners; • Community amenities - schools, parks, libraries, etc., amenities rate high in importance among homeowners. • The ability to have pets is also a top consideration with two-thirds of owners rating pets as very or extremely important. OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT Source: 2018 household survey 38 Rees Consulting, Inc. / Willliford, LLC PART II In addition: • Owners who live alone generally place less importance on character and proximity attributes but rank availability of bus service and proximity to skiing/recreation higher than other types of households. • Couples with children generally rank location attributes higher than other households, especially availability of day care and quality of schools. They place lower than average importance on bus service and proximity to skiing/recreation. • The importance ratings by other types of households tend to fall in between the preferences of people living alone and couples with children. • Mid valley resident rate most location attributes slightly higher than other owners while down valley owners generally place lower importance on location attributes. A few specific distinctions • Mid valley residents place greater importance on proximity to work and community character. • Quality of schools and availability of day care is higher for mid and down valley owners. • Up valley owners place greater importance on availability of bus service. Amenities Households ranked amenities as follows: • In-unit washers and dryers top the list of amenities, rated either very or extremely important by 85% owners. • Decks or patios rate equally with energy efficient heat - 70% of owners rank both very/extremely important. • Playgrounds or parks on site are also important to owners, especially households with children, and considerably more important to owners than renters. • Fitness centers on site are generally not important, as is typically the case in mountain communities where recreation opportunities are abundant. Fewer than 9% of owners consider on-site fitness centers important. As with location attributes, mid valley owners generally rate the importance of amenities higher than elsewhere in the valley. There are few differences in the rank order of amenities by area of the valley though down valley owners rate energy efficient appliances and heat, and exterior storage lockers noticeably lower than other owners, presumably due to its milder climate and because many down valley homes have garages. Source: 2018 household survey OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT 39Rees Consulting, Inc. / Willliford, LLC PART II Unit Type Residents who want to buy within the next five years were asked to rate four housing options on a scale where 1 = not at all interested and 5 = very interested. The hypothetical home types were created to test demand and tradeoffs. The prices are based on price points affordable to local employees and recent history of deed restricted home sales. Condominium 1 Bed/1 Bath 800 Sq Ft $200,000 Townhome 2 Bed/1.5 Bath 1000 Sq Ft $320,000 Duplex/Triplex 2 Bed/2 Bath 1250 Sq Ft $375,00 SIngle Family Home 3 Bed/2 Bath 1500 Sq Ft $475,00 Renters who want to buy are flexible with regards to unit type, with single family homes, duplex/triplex units and townhomes receiving similar ratings despite large price differences. Owners who want to buy a different home have strong preferences for a single-family home. Income levels and type of units that residents are interested in buying are correlated. • Lower income households are more interested in attached units, with townhomes rating higher than condominiums or duplexes/triplexes. • Higher income residents have little interest in condominiums and a strong preference for single family homes, with duplexes and triplexes preferred over townhomes. Source: 2018 household survey OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT 40 Rees Consulting, Inc. / Willliford, LLC PART II Upgrades Survey respondents had the opportunity to rate upgrades they would seek to and believe they can afford regards to a hypothetical home. When given an array of add on features or upgrades to choose from, fewer than 10% indicated they would prefer the base models. A private yard for $10,000 was the top choice for both renters and owners who want to buy. There are notable differences, however, between owners who want to move into a different residence and renters who want to move into ownership. • Owners more often selected multiple upgrades with a two car-garage, additional full bathroom, two additional bedrooms and extra storage measuring 8’ by 8’. • Renters desire fewer upgrades but rated one additional bedroom, a one-car garage, an extra half bath, and a storage locker higher than owners. Examination by unit type reveals most potential buyers: • Would like an additional bedroom except for those who are very interested in a 3-bedroom single family home. • Want and think they could afford a garage. • Want and think they could afford a garage. OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT Type of Home Desired by AMI This distribution is based on very interested (ratings of 5) responses. 60% or less AMI 56%30%15%6% 60.1 to 100 AMI 24%24%28%29% 100.1 to 140 AMI 17%29%30%26% 140.1 to 200 AMI 3%8%16%24% Over 200 AMI 0%8%11%14% Source: 2018 household survey Unit Type 41Rees Consulting, Inc. / Willliford, LLC PART II Examination by unit type reveals most potential buyers: • Would like an additional bedroom except for those who are very interested in a 3-bedroom single family home. • Want and think they could afford a garage. • Also want/could afford a private yard unless they are very interested in buying a condominium. Upgrades (continued) OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT Source: 2018 household survey OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT 42 Rees Consulting, Inc. / Willliford, LLC PART II OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT Upgrades by Unit Type Shading denotes features desired by more than 50% per unit type. Bedroom: 1 additional: $25,000 57%71%61%45% Bedrooms: 2 additional: $50,000 22%21%35%32% ½ Bathroom: $15,000 23%51%31%29% Full Bathroom: $30,000 36%44%47%45% Storage Locker: $2,000 32%22%25%17% Exterior storage ~ 8’x8’: $5,000 29%20%22%26% 1-car Garage: $20,000 57%57%52%42% 2-car Garage: $30,000 9%34%43%64% Private Yard: $10,000 38%50%54%76% Other (fill in feature & price)9%12%9%11% None of the them 0%1%3%3% Source: 2018 household survey Potential buyers who are very interested in purchasing the single-family home option also want to purchase the most upgrades, including a two-car garage. On the other end of the spectrum, residents interested in purchasing a condo- minium want fewer upgrades. Upgrades (continued) OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT 43Rees Consulting, Inc. / Willliford, LLC PART II OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT Financial Considerations PRICING The average prices that owners and renters who want to buy feel they can afford - given base prices and de- sired upgrades - range from $263,500 for a condominium to $553, 250 for a single-family home. Home Prices by Unit Type Price of Homes with Options Base Price $200,000 $325,000 $375,000 $475,000 $200,000 4.0% $200,001 to $250,000 37.8% $250,001 to $300,000 37.1% $300,001 to $350,000 14.8%15.4% $350,001 to $400,000 6.3%46.2%14.0% $400,001 to $450,000 26.5%46.6% $450,001 to $500,000 7.6%25.0%12.8% $500,001 to $550,000 4.3%10.9%40.4% $550,001 to $600,000 3.5%33.5% $600,001 to $650,000 9.8% $650,001 or more 3.5% Total 100.0%100.0%100.0%100.0% Mean $263,149 $397,692 $449,159 $553,255 Median $255,000 $395,000 $445,000 $547,000 Source: 2018 Housing Survey Affordability is a constraint impacting the ability of renters to move into ownership and, to a lesser degree, owners who want to buy a different home. Overall, 18% of residents who want to buy a home within the next five years have incomes of 60% or less. These households are candidates for Habitat for Humanity and similar homeownership efforts that serve very low income households. Over half, however, have incomes above 100% AMI, which indicates that homeownership pricing could vary widely. AMI Distribution of Households that Want to Buy Now Own Now Rent Overall 60% or less AMI 1%27%18% 60.1 to 100 AMI 27%30%28% 100.1 to 140 AMI 30%20%24% 140.1 to 200 AMI 29%14%19% Over 200 AMI 13%9%10% Source: 2018 Housing Survey 44 Rees Consulting, Inc. / Willliford, LLC PART II OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT DOWN PAYMENT AVAILABILITY The availability of funds for down payments will be a factor in pricing and determine how many residents who want to own will qualify. Although there are some mortgage programs with little or no down pay- ment required, it is appropriate to assume that down payments of 5% will be needed. With a base price of $200,000 the minimum down payment would be $10,000. • Most owners who want to buy a different home would have ample down payments given home equi- ty - about $121,500 on average. Roughly 6%, however, indicated they would have less than $10,000 to put down. • Renters generally have far less available for down payments; they have approximately $30,000 on average available. About 15% of renters have no funds available for a down payment, 12% have some funds but less than $10,000 and another 20% have between $10,000 and $15,000. This leaves just over half who should have sufficient funds for down payments if homes are affordably priced given their incomes. Residents who want to buy a home in the next five years were asked about their knowledge of mortgage requirements to determine if qualifying is likely to be an impediment to ownership. Results indicate home- ownership counseling is needed, especially for renters who want to buy. Source: 2018 Household Survey 45Rees Consulting, Inc. / Willliford, LLC PART II OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT OWNERSHIP HOUSING – DESIGN AND DEVELOPMENT DEED RESTRICTIONS Deed restrictions have become the norm for workforce housing in Eagle Valley. The survey confirmed what realtors indicated – most residents will accept a deed restriction that limits price appreciation and occupancy in order to own a home. Overall, deed restrictions would be acceptable to 70% of residents who are interested in buying a home in the Eagle Valley within the next 5 years. “How would a deed restriction that limits resale price appreciation to 3% per year and requires that homes be sold to households with at least one person who works in Eagle County impact your purchase decision?” Own Rent Overall The deed restriction would be acceptable to me at below-market prices, 61%76%70% OR I would pay more for a market unit that is not deed restricted -- how much more? 39%24%30% Source: 2018 household survey Some residents who want to buy would pay more for a market home, free of price/occupancy restrictions. The most often cited figure was $50,000 more. 46 Rees Consulting, Inc. / Willliford, LLC PART II The information presented in this section can help inform policy direction and development decisions about new rental housing. Market Size The potential market for rental housing in the Eagle Valley consists of approximately 7,650 households, the total number residing in the Eagle River Valley. They represent the market from which rental projects must draw residents. Market size is distinct from the estimates of rental need by AMI presented in Part I. Decisions on the number of new units to build should consider need. Design/location/rent decisions should be based upon the characteristics and preferences of renters currently living in the valley who will likely lease most of the new units. Employees moving into the valley will also be a component of renter demand, but they will constitute a small proportion of the target market of new rental product, and they are likely to have similar characteristics to existing renters. A subset are the 5,780 renter households that want to move within the Eagle River Valley within the next 5 years. As described in the Ownership section, the large majority of renters want to move into ownership; just under 11% want to continue to rent. The number who will be able to buy, however, depends upon the devel- opment and pricing of ownership opportunities. Many will likely remain renters. Very few owners want to move into rental housing and are not a quantifiable rental market segment. Potential Rental Market Renters Total # of Renter Households, 2017 7,650 % want to move into a different home in the Eagle River Valley in 5 years 76% # want to move into a different home in the Eagle River Valley in 5 years 5,780 % want to rent 11% # want to rent 635 Source: 2018 household survey RENTAL HOUSING DEVELOPMENT & DESIGN 47Rees Consulting, Inc. / Willliford, LLC PART II Location Far more renters now live mid or down valley than they desire. Of renters who want to remain in the Eagle River Valley, over 40% want to live up valley but less than 30% now do. Source: 2018 household survey While many renters would prefer to live up valley, most renters now live in the area of the valley that is their first choice. The desire to live elsewhere is highest among down-valley renters who would rather live up val-ley – nearly 60% would prefer to live mid or up valley. Where Now Live Compared to Where Want to Live Shading indicates residents living where they most want to live. Want to live (first choice)Where Live Now Up Valley Mid Valley Down Valley Up Valley 94 28 9 Mid Valley 5 66 30 Down Valley 1 5 61 100%100%100% Source: 2018 household survey RENTAL HOUSING DEVELOPMENT & DESIGN of the Valley's Renters Live Here of the Valley's Renters Want to Live Here DOWN VALLEY 24% 18% of the Valley's Renters Live Here of the Valley's Renters Want to Live Here MID VALLEY 48% 40% of the Valley's Renters Live Here of the Valley's Renters Want to Live Here UP VALLEY 28% 42% 48 Rees Consulting, Inc. / Willliford, LLC PART II RENTAL HOUSING DEVELOPMENT & DESIGN Location Preference Characteristics Up valley appeals more to renters who live alone, couples without children and roommate households. Few- er than 20% have children in the household. Mid valley is the first choice for a diverse mix of renter households – singles liv-ing alone, roommates, couples with and without children, and particularly single parents with children. Down valley is more attractive to families with children although about half of the renters who indicated it is their first choice are households without children. There are variations in 1st choice location by income. Desire to live up valley is high- est among the lowest and highest income renters. Renters in the moderate and mid- dle-income ranges are more likely to prefer mid valley. Source: 2018 household survey Location Preferences by Town Examination by individual community shows proportionately more renters want to live in Vail, Minturn and Edwards than now live there. Although the sample is very small, it appears that renters who commute in from other counties want to continue to live in their current communities. Renter Location Preferences Where do you now live in or near Now Live 1st Choice Difference Vail 18%26% Minturn 8%13% Eagle Vail 8%5% Avon 22%16% Edwards 16%18% Eagle 15%12% Gypsum 9%5% Source: 2018 household survey. Note: Redcliff, Wolcott, and Dotsero excluded due to small sample size. 49Rees Consulting, Inc. / Willliford, LLC PART II RENTAL HOUSING DEVELOPMENT & DESIGN Location/Neighborhood Attributes In general: • Renters feel proximity to work is their most important consideration when searching for housing. • Community character, defined as “locals or family-oriented, social opportunities, entertainment, restaurants, etc.” is very or extremely important for over 60% of renters in the valley. • Pets allowed is third in importance; for many renters in the Eagle Valley and other mountain towns, having dogs is a priority. • The availability of day care ranked lowest on the list overall, yet daycare and the quality of schools is very or extremely important to most families with children. Source: 2018 household survey Differences within the valley: • Availability of bus service is more important to renters who live up valley than mid- or down-valley renters, which suggests that getting around Vail may be more valued than using transit to travel up and down the valley. • Proximity to skiing is more important to up-valley renters of slight importance to mid valley renters but only moderately important to down valley renters. 50 Rees Consulting, Inc. / Willliford, LLC PART II RENTAL HOUSING DEVELOPMENT & DESIGN Amenities Renters in the Eagle Valley generally place high importance on amenities: • In-unit washers and dryers are extremely important to most renters (57%) and have become standard in new apartment properties. • Most renters feel energy efficient heat is very or extremely important. While many renters indicate their util- ities are included in their rent payment, utilities average $223 per month year- round. Several large apartmen complexes bill flat fees for utilities rather than requiring residents to place accounts in their names and pay deposits. • Exterior storage lockers are of mid-range importance to renters; however, property managers report storage is of upmost importance. • Fitness centers on site are typically of little importance to renters in mountain communities where recreation opportunities are abundant and easily accessed, and this holds true in the Eagle Valley. There is little variation in importance ratings by household type. Exceptions are on-site playgrounds/parks, which are more important to families with children, and WI-FI included, which is more important to adult-only households. Also, while mid-valley renters rated most amenities slightly higher than renters on average through the valley, there are no significant variations in the importance of specific amenities by where they now live or most want to live. Source: 2018 Household Survey RENTAL HOUSING DEVELOPMENT & DESIGNRENTAL HOUSING DEVELOPMENT & DESIGNRENTAL HOUSING DEVELOPMENT & DESIGN 51Rees Consulting, Inc. / Willliford, LLC PART II RENTAL HOUSING DEVELOPMENT & DESIGN Unit Type Most renters live in housing units that were designed/developed for ownership – primarily single-family homes, duplexes, townhomes and condominiums. Fewer than 40% of renters now reside in apartments. Source: 2018 Household Survey There are relatively too few small rental units and too many large units. Renters living in three-bedroom units outnumber renter households with one bedroom, which is not typical. While the two-bedrooms are in relative balance with need, more one-bedroom units and fewer three-bedroom rentals are needed. Nearly 60% of renters live alone or with one other person, which is why most want one- or two-bedroom units. The percentage living alone is slightly lower than the portion of one-bedrooms needed, likely due to the ability/desire of couples to rent one-bedroom units. Renter Household Size People in Household % Renter Households 1 27% 2 30% 3 18% 4 16% 5+9% Source: 2018 household survey Bedroom Mix Source: 2018 Household Survey 52 Rees Consulting, Inc. / Willliford, LLC PART II Rents The average market rent in the Eagle Valley is $1,700 per month. Utilities average an additional $223 per month. Rents are lowest up valley, which may seem counter intuitive, but appears to be due to variation in the type of units occu- pied by area. Relatively more renters live in older, smaller, multi-family units up valley as compared to larger, newer, and more single-family homes mid and down valley. Average Market Rents by Area Free Market - Average Rent Up Valley $ 1,560 Mid Valley $ 1,840 Down Valley $ 1,550 Overall $ 1,700 Source: 2018 household survey, CHFA Nearly one-third of renters pay between $1,500 and $2,000 per month, the largest category. Average rents are generally affordable for households with incomes over 60% AMI. This does not mean that, however, that all renters within each AMI category have affordable housing. There is a mismatch between incomes and rents paid, which is common when rental availability is tight and there is little opportunity for moving from one unit to another, as documented in the Cost Burden section. Rents paid in the 100% to 140% AMI range are not proportionately higher than in the 60% to 100% category. Higher income renters out compete others. Source: 2018 household survey Rent Paid Compared to Affordable Rent by AMI AMI % Renter House- holds Average Rent Paid Affordable Rent 60% or less AMI 28%$ 1,200 $ 1,210 60.1 to 100 AMI 31%$ 1,510 $ 2,420 100.1 to 140 AMI 19%$ 1,650 $ 2,820 140.1 to 200 AMI 13%$ 1,970 $ 4,030 Source: 2018 household survey, CHFA Note: Over 200% AMI excluded due to small sample; includes deed restricted and employer-provided units. RENTAL HOUSING DEVELOPMENT & DESIGNRENTAL HOUSING DEVELOPMENT & DESIGNRENTAL HOUSING DEVELOPMENT & DESIGNRENTAL HOUSING DEVELOPMENT & DESIGN 53Rees Consulting, Inc. / Willliford, LLC PART II Tradeoffs Since there are insufficient opportunities to provide housing up valley where half of all renters want to live (about 3,900 renter households) their second choice for where to live should be considered. Second choice responses show far higher preferences for mid valley and, to a lesser extent, down valley communities. Generally, renters who most want to live in Vail would rather live nearby in Eagle Vail than further away. The big drop in Vail between 1st and 2nd choice indicates that most renters who want to live mid or down valley would choose other nearby communities rath-er than seek housing up valley in Vail. Residents who want to rent were asked: “How much more would you be willing and able to pay for rent where you most want to live (1st choice) compared to your second choice?” About one-fourth are not willing to pay any additional rent to live where they most want to live, and an almost equal percentage are only willing to pay $100 per month. Results above that amount are widespread with some renters indi-cating large amounts (>$1,000/month) that they could not likely afford. Impact of Restrictions Residents who want to rent were asked: “How might employment and income restrictions impact your willing to lease an apartment, if at all?” Results show: • A very large majority (over 90%) would provide employment verifications. • Roughly half would like some form of pricing restriction for rents with low yearly rent increases. • Over three-fourths would sign one-year leases. RENTAL HOUSING DEVELOPMENT & DESIGNRENTAL HOUSING DEVELOPMENT & DESIGNRENTAL HOUSING DEVELOPMENT & DESIGNRENTAL HOUSING DEVELOPMENT & DESIGN Source: Resident survey 54 Rees Consulting, Inc. / Willliford, LLC PART II Overview HOUSING TOOLS Conceptually, how do you feel about the following strategies for increasing workforce housing in the Eagle River Valley and its communities?““The surveys tested 15 tools in these four categories: INCENTIVES PARTNERSHIPS & PUBLIC INITIATIVES DEVELOPMENT REGULATIONS FUNDING Providing Town/County Land Town or County Builds Housing Town/County/Housing Authority Financing Property Tax Exemption Density Bonuses Fee Waivers Reduced Parking Fast-Track Processing Commercial Linkage Residential Linkage Inclusionary Housing Excise Tax on Short-Term Rentals Property Tax Sales Tax General Fund Revenues Many approaches have been used to address housing needs in the Eagle Valley for more than three decades. Towns, Eagle County, private and non-profit developers, and employers have combined a variety of tools to produce over 3,000 affordable homes for residents to date. Despite these widespread efforts and their achievements, developing affordable housing has become more challenging over time, with few opportunities and rising gaps between affordable prices and market realities. To address the housing needs quantified in Part I of this report, new tools will be required to supplement and expand the strategies used in the past. Residents and employers were surveyed to determine which tools would have the greatest support in the Eagle Valley. The following question was posed in both surveys: 55Rees Consulting, Inc. / Willliford, LLC PART II PROVIDING TOWN/COUNTY LAND Providing County or Town land that is vacant or under-utilized EMPLOYERS RESIDENTS TOWN/COUNTY/HOUSING AUTHORITY FINANCING Town, County, or Housing Authority provides financing. EMPLOYERS RESIDENTS FAST-TRACK PROCESSING Workforce housing projects go to the front of the line for review. EMPLOYERS RESIDENTS TOWN OR COUNTY BUILDS HOUSING Town or County builds housing (like Miller Ranch or Chamonix) EMPLOYERS RESIDENTS INCLUSIONARY HOUSING A percentage of new units in subdivsions are restricted for workforce housing EMPLOYERS RESIDENTS COMMERCIAL LINKAGE Requiring new commercial development to provide housing EMPLOYERS RESIDENTS FEE WAIVERS Water/sewer tap fees, permit fees waived for workforce housing EMPLOYERS RESIDENTS EXCISE TAX ON SHORT-TERM RENTALS Tax on short-term rentals, for example 3-5% -(vote required) EMPLOYERS RESIDENTS DENSITY BONUSES Density bonuses when workforce housing is built EMPLOYERS RESIDENTS GENERAL FUND REVENUES Revenues from general fund (appropriation by elected officials required) EMPLOYERS RESIDENTS PROPERTY TAX EXEMPTION Exempt from property tax paid by property owners (vote required) EMPLOYERS RESIDENTS RESIDENTIAL LINKAGE A type of impact fee on new construction EMPLOYERS RESIDENTS SALES TAX Sales tax paid by consumers (vote required) EMPLOYERS RESIDENTS REDUCED PARKING Reduced parking requirements for workforce housing EMPLOYERS RESIDENTS PROPERTY TAX Property tax paid by property owners (vote required) EMPLOYERS RESIDENTS HOUSING TOOLS TOP RATED TOOLS OTHER TOOLS Source: 2018 household survey, 2018 employer survey 56 Rees Consulting, Inc. / Willliford, LLC PART II There is more support than opposition for all tools, ex- cept property tax and, among residents, reduced park- ing both of which received ratings of less than three. The top six tools include at least one from incentives, partnerships/public initiatives, and development regu- lations. This indicates residents and employers recog- nize a combination of efforts will be needed and no one “silver bullet” is going to address workforce/affordable housing needs in the Eagle River Valley. Overall, employers more strongly support housing tools than residents, although there are many similarities in the rank order. Property tax is a notable exception with lower support among employers than residents, proba- bly due to the much higher tax rate paid on commercial property than residential property. Employers ranked "I think transportation needs to be a major topic of discussion. Better bus service to help get workers up-valley to help with efficiency, less cars on the roads and a lower carbon footprint." -2018 Survey Respondent "We need a county wide, holistic housing solution with a dedicated funding source." -2018 Survey Respondent commercial linkage 7th among the 15 options, just slightly lower than the average rating given by residents, which is notable since the tool may be viewed as unfavorable to businesses. In-depth examination of the survey ratings by category reveal variation in opposition/support that should be helpful when designing and obtaining approvals for individual strategies. Results are presented for resi- dents; employer responses generally mirror those of residents. HOUSING TOOLS 57Rees Consulting, Inc. / Willliford, LLC PART II Source: 2008 Household Survey HOUSING TOOLS Incentives • Support for fast track processing is strong with very little opposi- tion. • Opposition is also low for fee waivers and density bonuses with a relatively high percentage who are neutral about these incentives. • Residents are very divided about reductions in parking require ments with the highest “strongly oppose” percentage among the 15 tools tested. • More residents are uncertain about density bonuses than any of the other tools tested; 17% responded “don’t know.” Generally, there is strong support and relatively little opposition to incentives yet it is not consistent across the board for the four tools in this category: "Make development requirements/parking and tap fees more attainable for builders to make sense of building affordable housing. Parking requirements are too much Town of Eagle. Need downtown infill mixed use development." -2018 Survey Respondent Source: 2018 household survey 58 Rees Consulting, Inc. / Willliford, LLC PART II HOUSING TOOLS Partnerships and Public Initiatives • Providing Town or County-owned land rated high est overall with minimal opposition; only about 10% opposed. • Construction and financing of housing by the towns, Eagle County or the housing authority also received strong support with little opposition. • Residents are divided about property tax exemp- tions. While support is higher than opposition, over 15% of residents strongly oppose. Source: 2018 household survey "[There should be] low interest loan opportunities for commercial properties or operations to build, add, create, employee housing units." -2018 Survey Respondent Support is generally strong for partnerships/initiatives though residents are divided: 59Rees Consulting, Inc. / Willliford, LLC PART II HOUSING TOOLS Development Regulations • Support for both inclusionary housing and commercial linkage is strong – about 65% support or strongly support these development regulations while only about 10% oppose. • Residential linkage received far lower support, a rela- tively high level of neutral responses, and opposition from over 20% of residents. Residential linkage also had relatively high uncertainty (11% of responses). • Residents are divided about property tax exemptions. While support is higher than opposition, over 15% of residents strongly oppose. "Zoning changes to increase density. Plus, a better transportation plan to eliminate parking regulations/problems. We need more people, not cars." -2018 Survey Respondent Three tools were tested that impose requirements on new development for the provision of workforce housing. Support outweighs opposition for all three. Source: 2018 household survey "We can only afford to live here now because of deed-restricted employer provided housing." -2018 Survey Respondent 60 Rees Consulting, Inc. / Willliford, LLC PART II HOUSING TOOLS Funding • Providing Town or County-owned land rated high est overall with minimal opposition; only about 10% opposed. • Construction and financing of housing by the towns, Eagle County or the housing authority also received strong support with little opposition. • Residents are divided about property tax exemp- tions. While support is higher than opposition, over 15% of residents strongly oppose. Funding alternatives garnered relatively more neutral responses than did strategies in the other three cate- gories, but with great variation among the four funding tools in terms of support and opposition. "Additional fees and/or taxes on houses exceeding a certain size (to be determined/ voted on). Change the fundamentals of the market, restrict short term rentals. If short term rental was not an option to offset the cost of owning a vacation home, there would be more housing stock available for primary homeowners at lower cost." -2018 Survey Respondent Source: 2018 household survey 61Rees Consulting, Inc. / Willliford, LLC PART II Support/opposition are similar throughout the Eagle River Valley, which indicates the potential for a valley-wide stra-tegic housing plan with shared implementation of housing programs. A few notable differences: • Mid-valley residences expressed slightly higher support overall for the majority of the tools. • Mid-valley residents were more likely to support the Towns, County or Housing Authority building housing, perhaps due to the success of Miller Ranch in Edwards, and to support the provision of financing by the Towns, County or Housing Authority. • Support is essentially equal among up-valley and mid-valley residents for four tools – commercial linkage, excise tax on short-term rentals, desity bonuses and general fund revenues. • The only tool for which support was higher down-valley than in the other two areas was reduced parking, probably since parking shortages are primarily an up- and mid-valley problem. Differences within the valley HOUSING TOOLS Source: 2018 household survey 62 Rees Consulting, Inc. / Willliford, LLC PART II HOUSING TOOLS Characterizing Support These trends are observed related to support for the housing tools: • The more strongly that residents believe the availability of affordable housing for the workforce in Eagle Valley is a problem, the more likely they are to support housing tools. • Renters expressed higher support than homeowners for all housing tools tested. • There is, however, support for housing tools across all income categories. The average rating among lower income residents (≤60% AMI) was 3.7 compared to 3.6 among upper-income residents (>200% AMI). Although the overall rating was lowest among households in the 160% to 200% AMI category, support for housing tools still outweighed opposition. • Residents who currently occupy housing that is deed restricted or provided by employers are more likely to support these housing tools than occupants of free market housing. • Residents who want to move into a different home in the Eagle Valley, or want to leave the Eagle Val ley, showed higher support for tools than residents who want to stay in their homes for at least the next five years. • Support varied somewhat by type of household. Persons living with roommates and “other” house holds (extended families, roommates and family members, etc.) indicated the highest support for housing tools, while couples with no children were the least supportive. In order from highest sup- port to lowest: • Workforce households showed greater support than households with no employees. • Support is similar among all age groups other than senior households (at least one member age 65+). Support is lower among seniors than the overall population for most tools, especially parking and property tax reductions. Support among seniors, however, is slightly stronger for the three devel opment regulations – inclusionary zoning, commercial linkage and residential linkage. • There appeared to be very little correlation between support for housing tools and ethnicity/race. • Workforce households showed greater support than households with no employees • Support is similar among all age groups other than senior households (at least one member age 65+). Support is lower among seniors than the overall population for most tools, especially parking and property tax reductions. Support among seniors, however, is slightly stronger for the three devel- opment regulations – inclusionary zoning, commercial linkage and residential linkage. • There appeared to be very little correlation between support for housing tools and ethnicity/race. HOUSING TOOLS 63Rees Consulting, Inc. / Willliford, LLC PART II HOUSING TOOLS Other Solutions Nearly 200 residents offered additional suggestions about what could be done to provide affordable work- force housing in the Eagle River valley. Many took the time to offer multiple suggestions and specific exam- ples. One brief comment about what should be done summed it up: “Anything and everything” • Comments generally fell into the following categories: • Impose higher taxes/fees on second homes, large homes and short-term rentals. • Allow/build smaller units – accessory dwellings, tiny homes, lock offs, basic apartments, dorms and yurts. • Build and restrict housing for specific types of employees, like teachers. • Get employers more involved in providing employee housing. • Look to other communities - Vancouver, Martha’s Vineyard, Steamboat Springs. • Improve transit, a point emphasized by realtors and property managers. Housing more employees down valley, especially renters, is generating the need for significant improvements in the transit system. • Reduce land development and building regulations and decrease development fees to make it more affordable for the private sector to produce housing. • Develop regional approaches and cooperation. 64 Rees Consulting, Inc. / Willliford, LLC PART II Employers have long contributed to housing in the Eagle River Valley. Many residents suggested employers should take greater responsibility for workforce housing in the future and employers seem to agree. When asked about the types of assistance they now provide or would consid- er providing in the future, results showed there is sig- nificant potential for increasing employer-owned rental units, housing search assistance, rent deposits, master leasing and, to a lesser degree, providing land for housing and purchase price buy downs. Employer Assisted Housing HOUSING TOOLS "Strong emphasis needs to be placed on business and employers to provide workforce housing or pay for these initiatives." -2018 Survey Respondent Housing Assistance Provided by Employers Provide Now Would Consider Purchase price buy downs 6%18% Land on which housing could be built 9%20% Master leasing units to rent to your employees 24%45% Rent or first month/deposit subsidy for your em- ployees 29%49% Employer-owned rental units 41%63% Down payment/mortgage assistance 41%33% Assistance with housing search 47%61% Temporary/relocation housing 53%43% Hiring bonus / salary stipend / higher wages 59%57% Source: 2018 Employer Survey. Note: Multi-Response question; totals exceed 100%. 65Rees Consulting, Inc. / Willliford, LLC APPENDICES APPENDIX A – ACKNOWLEDGEMENTS Acknowledgements Thank you to the many agencies and individuals who made this study possible: • Eagle County and Eagle County Housing and Development Authority who made the resources available and as-sisted with survey outreach. • Subject matter experts who contributed their time and expertise – Tori Franks, Kim Bell Williams, George Ruther, Virginia Egger, Morgan Landers, Michelle Metteer, Jeremy Rietmann, Colton Berke, Jill Klosterman, Janet Hawkin- son, Chris Romer, Commissioner Kathy Chandler-Henry, Commissioner Jeanne McQueeney, Commissioner, Jill Ryan, Brenda Camunez, Priscilla Coffin, Kyle Denton, Brooke Franke Gagon, Betsy Laughlin, Corey Lamothe. • All the local residents and employers who took a few minutes to complete the survey in December 2017 and Janu-ary 2018. 66 Rees Consulting, Inc. / Willliford, LLC APPENDICES APPENDIX B – AREA MEDIAN FAMILY INCOME AND PURCHASE PRICES Area Median Income for Eagle County, 2017 Household Size 1 2 3 4 5 6 AMI Classifications Extremely Low (30% AMI)$18,810 $21,480 $24,180 26,850 $29,010 $31,170 Very Low (50% AMI)$31,350 $35,800 $40,300 $44,750 $48,350 $51,950 60% AMI (LIHTC max)$37,620 $42,960 $48,360 $53,700 $58,020 $62,340 Low (80% AMI)$50,160 $57,280 $64,480 $71,600 $77,360 $83,120 Median (100% AMI)$62,700 $71,600 $80,600 $89,500 $96,700 $103,900 Moderate/Middle (140% AMI)$87,780 $100,240 $112,840 $125,300 $135,380 $145,460 Upper (200% AMI)$125,400 $143,200 $161,200 $179,000 $193,400 $207,800 Source: CHFA Affordable Home Price Calculation by AMI, 2017 AMI %30%60%100%140%200% Household Income – 3 persons $24,180 $48,360 $80,600 $112,840 $161,200 Affordable Purchase price Affordable monthly payment (30%)$605 $1,209 $2,418 $2,821 $4,030 Principal & interest (80% of pmt)$484 $967 $1,934 $2,257 $3,224 HOA, taxes, insurance (20% of pmt) $121 $242 $403 $564 $806 Mortgage Interest rate 5.00%5.00%5.00%5.00%5.00% Max mortgage $90,086 $180,172 $300,343 $420,400 $600,572 Max Affordable Price -5% down $95,000 $190,000 $316,000 $443,000 $632,000 Affordable Rent + utilities $605 $1,209 $2,418 $2,821 $4,030 Affordable purchase prices were calculated assuming that a household would have 5% for a down pay-ment, and would qualify for a loan that 30% of their monthly income. HOA, property taxes and insurance of 20% where included. The max mortgage assumes an interest rate of 5.0%, which is about half point higher than prevailing rates for 30-year fixed rate mortgages. Interest rates are rising, however, and will have a profound impact on housing affordability. A one point increase in the rate, as occurred in 2013, would drop the affordable purchase price for a median income household by $30,000 to $35,000. 67Rees Consulting, Inc. / Willliford, LLC APPENDICES APPENDIX C – HOME SALES BY ZIP CODE, 2017 Vail - 81657 Zip Code # of Sales Median Average Affordable Price - 100% AMI Affordability Gap Single Family 25 $ 2,200,000 $ 3,333,000 $ 316,000 $ 1,884,000 Townhouse/Du- plex 75 $ 1,425,000 $ 2,178,000 $ 316,000 $ 1,109,000 Condo 160 $ 743,750 $ 1,629,000 $ 316,000 $ 427,750 Red Cliff - 81649 Zip Code # of Sales Median Average Affordable Price - 100% AMI Affordability Gap Single Family 6 $ 242,000 $ 340,000 $ 316,000 $ (74,000) Townhouse/Du- plex 1 $ 342,000 $ 342,000 $ 316,000 $ 26,000 Condo - $ - $ - $ 316,000 $ - Minturn - 81645 Zip Code # of Sales Median Average Affordable Price - 100% AMI Affordability Gap Single Family 9 $ 521,000 $ 719,000 $ 316,000 $ 205,000 Townhouse/Du- plex 4 $ 713,250 $ 741,000 $ 316,000 $ 397,250 Condo 1 $ 570,000 $ 570,000 $ 316,000 $ 254,000 Avon/Beaver Creek/Eagle Vail - 81620 Zip Code # of Sales Median Average Affordable Price - 100% AMI Affordability Gap Single Family 41 $ 3,325,000 $ 4,386,299 $ 316,000 $ 3,009,000 Townhouse/Du- plex 99 $ 770,000 $ 1,138,007 $ 316,000 $ 454,000 Condo 225 $ 490,000 $ 877,865 $ 316,000 $ 174,000 APPENDIX C – HOME SALES BY ZIP CODE, 2017 68 Rees Consulting, Inc. / Willliford, LLC APPENDICES Edwards - 81632 Zip Code # of Sales Median Average Affordable Price - 100% AMI Affordability Gap Single Family 106 $ 1,700,000 $ 1,843,958 $ 316,000 $ 1,384,000 Townhouse/Du- plex 49 $ 1,060,000 $ 1,285,429 $ 316,000 $ 744,000 Condo 12 $ 818,125 $ 894,771 $ 316,000 $ 502,125 Wolcott - 81655 Zip Code # of Sales Median Average Affordable Price - 100% AMI Affordability Gap Single Family 9 $ 950,000 $ 1,332,056 $ 316,000 $ 634,000 Townhouse/Du- plex - $ - $ - $ 316,000 $ - Condo - $ - $ - $ 316,000 $ - Eagle - 81631 Zip Code # of Sales Median Average Affordable Price - 100% AMI Affordability Gap Single Family 92 $ 615,500 $ 670,334 $ 316,000 $ 299,500 Townhouse/Du- plex 49 $ 423,500 $ 424,038 $ 316,000 $ 107,500 Condo 10 $ 312,500 $ 320,000 $ 316,000 $ (3,500) Dotsero/Gypsum - 81637 Zip Code # of Sales Median Average Affordable Price - 100% AMI Affordability Gap Single Family 155 $ 400,000 $ 460,768 $ 316,000 $ 84,000 Townhouse/Du- plex 38 $ 376,500 $ 368,561 $ 316,000 $ 60,500 Condo 12 $ 194,800 $ 201,967 $ 316,000 $ (121,200) APPENDIX C – HOME SALES BY ZIP CODE, 2017 69Rees Consulting, Inc. / Willliford, LLC APPENDICES Primary research was conducted to generate information beyond that available from existing public sources. This appendix provides the methods and sources used, such that the research contained in this report could be replicated or updated as needed. Study Area Definitions The three market areas were defined by Census Tract and Zip code, as follows: Census Tracts Zip codes Up Valley 6, 7.01, 7.02, 7.03 81645, 81649, 81657, 81658, Mid Valley 4.01, 4.02, 5.01, 5.02, 5.03 81620, 81632 Down Valley 2, 4.03 81631, 81637, 81655, Household Survey An online survey was conducted from late November 2017 through mid-January 2018 to collect information on the current housing situation of local residents and employees. The survey explored household characteristics, housing perceptions and preferences, tradeoffs, and preferred housing solutions. The link to the survey was widely distributed through various media, employers and multiple other outreach efforts (see below). In total, responses were received from 705 residents in the Eagle River Valley: 147 from up valley, 347 mid valley, and 211 down valley. The margin of error for survey tabulations is within about 2.5% at the 95% confidence interval, meaning that for any tabulation the percent reported is within plus or minus 2.5% from what is actually the case. For data representing less than the full population of responses (e.g., home owners only), the margin of error is higher. Employer Survey Concurrent with the household survey, a short online survey was also conducted to reach employers in the Eagle River Valley. The employer survey inquired about the number of year- round and seasonal workers (summer and winter) employed, where workers live (commute patterns), employee retention and recruitment issues, to what extent em-ployee housing is perceived to be a problem, and employers preferred housing solutions. The link to the survey was distributed by the Vail Valley Partnership, through in-person visits to many restaurants and retailers, direct phone and/or email invitations to the valley’s 50 largest employers with follow-up phone calls. Responses were received from 84 employers representing 9,700 jobs, approximately 27% of all jobs in the Eagle River Valley. Survey Outreach • Outreach for the online employer and household surveys was conducted as follows: • Two press releases to all local news outlets. • Editorial coverage from the Vail Daily News on (11/30/2017). • Public service announcements on local radio stations: La Nueva Mix, KSKE, The Lift FM. • Radio interviews on Mid Day Mile and on the Zephr. • Email distribution to Eagle County Government E-News Subscription. APPENDIX D – METHODOLOGY & SOURCESAPPENDIX D – METHODOLOGY & SOURCES 70 Rees Consulting, Inc. / Willliford, LLC APPENDICES • Newsletter outreach to members of the Vail Valley Partnership, Vail Chamber and Business Association, Gyp- sum Chamber, and Eagle Chamber. • Direct phone calls and/or email invitations to the 50 largest employers. • Email outreach to all current participants and applicants for Valley Home Store and ECHDA properties and programs. • Spanish language outreach at ECHDA owned and managed properties, and on La Nueva Mix. • Email links on the websites of Eagle County Government, Eagle County Housing, and The Valley Home Store. • Social media messages on Eagle County Government Facebook page, Eagle County Housing Facebook page, Eagle County Classifieds Facebook page, Vail Moms Facebook page, Vail Moms classifieds Facebook page. Property Manager and Realtor Focus Group A focus group of property managers and realtors was conducted on October 12, 2017 to obtain information, insights, and assist with survey design. This focus group provided qualitative information on trends, challenges, housing prefer-ences and shifts in demand. Secondary Data A variety of sources of published information were used in the preparation of this report, including: • 2010 Census data from the U.S. Census Bureau and population and household projections from the State Demog-raphy Office in the Colorado Department of Local Affairs (DOLA); • Employment information from the Quarterly Census of Employment and Wages (QCEW), Colorado Department of Labor and Employment; ESRI; • 2016 Area Median Income from the U.S. Department of Housing and Urban Development; • 2017 and 2018 Multiple Listing Service (MLS) listings; • Existing reports, and of particular note the Housing Needs Assessments from 2007, 2012, and 2016, Vail Valley Partnership Workforce Survey Report 2017, Land Title, and Polar Star Market Reports. Demand Calculations • The following components make up the Catch-up/Keep-up demand estimates. The following baseline data points are used throughout the demand calculations: • Total jobs in the Eagle River Valley of 35,810, per ESRI December 2017. • Total occupied housing units in the Eagle River Valley of 17,030, per 2010 Census, brought up to date with DOLA State Demographer data. • Jobs/household per the 2018 household survey is 1.9. However, given that this change is not large compared with the 1.8 jobs/household previously measured and used for other calculations for housing policies in the valley. To remain consistent, 1.8 jobs/household is used in this report. If a larger change is measured in future years, these calculations should be revisited. • Jobs/employee of 1.24, per the 2018 household survey. Unique assumptions are described below. Final demand numbers are rounded to the nearest 10. APPENDIX D – METHODOLOGY & SOURCES 71Rees Consulting, Inc. / Willliford, LLC APPENDICES Unfilled Jobs In the 2018 Employer Survey, employers reported that 7% of jobs remained unfilled in the peak winter hiring season. This percentage was applied to the total jobs in the Eagle Valley. Unfilled jobs were then translated to units needed by calculating the jobs held/person (1.24) and the employees per household (1.8). Unemployment is currently so low that very few jobs can be filled by employees who already live in the Eagle River Valley, so no discount was given for local hiring. Assumptions & Units Needed Total Jobs 35,810 % unfilled Jobs (Dec/Jan 2018)7% # unfilled jobs 2,470 Jobs per employee 1.24 Employees needed 1,992 Employees/Household 1.8 Housing Need 1,110 Functional Rental Market The number of existing rental units was derived using DOLA and Census figures, which estimate a total 17,030 oc-cupied homes in the Eagle River Valley. Since tenure estimates have shifted considerably towards renters since the 2010 Census, a combination of DOLA and survey response data was used to estimate that 45% of all homes are renter occupied. The research team estimated that 1% or fewer of these units are vacant, based on Polar Star reports and the property manager/realtor focus group. An additional 4% is a conservative estimate of what is needed to achieve a 5% vacancy rate. Functional Rental Market Assumptions & Units Needed 2017 Total Units per Census + DOLA 17,030 % rentals, per survey + DOLA 45% Rental Units 7,660 Goal of 5% vacancy - assume 1% already 4% Housing Units Needed 310 APPENDIX D – METHODOLOGY & SOURCES 72 Rees Consulting, Inc. / Willliford, LLC APPENDICES In-commuters The percentage of in-commuters and the extent to which they desire to move to the Eagle River Valley were estab-lished through the 2018 employer survey. In- commuters Assumptions & Units Needed Total Jobs 35,810 Jobs per employee 1.24 Total employees 28,879 % Commuting from outside 9% Number of in-commuters 2,599 Desire to move 39% # Who would move 1,014 Employees/household 1.8 Housing Need 560 Overcrowding The 2018 household survey established that 16% of all households are currently overcrowded. Consistent with previ-ous studies in Eagle County, the definition of 1.5 persons per bedroom was used to define “overcrowded.” The metric of 30% reduction has also been used consistently over time as a practical measure to relieve, but not eliminate, the problem. Overcrowded Assumptions & Units Needed Total survey respondents over crowded:16% Total Housing Units 17,030 Overcrowded units 2,670 % needed to reduce overcrowding 30% Housing Units Needed 800 New Jobs New jobs for 2020, 2025, and 2030 were projected using the baseline of ESRI jobs in the valley, and applying the antici- pated growth rates as published by the State Demography Office on the DOLA website December 2017. New Jobs Assumptions & Units Needed 2020 2025 2030 Increase in Jobs over 2017 2,304 5,250 8,643 Jobs per Employee 1.24 1.24 1.24 New Employees 1,858 4,234 6,970 Employees/household 1.8 1.8 1.8 Housing Units Needed 1,030 2,350 3,870 APPENDIX D – METHODOLOGY & SOURCES 73Rees Consulting, Inc. / Willliford, LLC APPENDICES Retiring Employees Employers responding to the 2018 employer survey provided the data that 4% of the workforce intends to retire in the next five years. This data was annualized and applied to total jobs in the valley, using the consistent assumptions about jobs/employee and employees/household. Retiring in 5 years Retiring annu- ally % total jobs with employee planning to retire 4.2%0.8% Total Jobs 28,879 28,879 # Jobs held by retiring employees 1,202 240 Jobs/employee 1.24 1.24 Employees/household 1.8 1.8 Housing Units needed 540 110 Gap, Location, and Tenure The gap calculation begins with the total housing need estimated for 2020: 3,870 units. This number is then discount- ed with the assumption that 9% of jobs will continue to be filled by in-commuters, to establish a demand for 3,800 units within the Valley. The color-coded chart identifying where gaps exist by region and tenure is estimated using the market and AMI data compiled in Chapter 1. Quantification of these gaps is highly sensitive to changes in the market and should be re-viewed regularly. The location for new housing was established by household survey respondent’s stated preferences regarding where they want to live. Percentages used are as follows: Up Valley Mid Valley Down Valley Own 26%39%35% Remt 42%40%18% The tenure mix of 55% owners and 45% renters matches that of the survey weighting, which was derived by finding a middle ground between the 2010 Census tenure mix and that of the 2018 household survey, which seemed to indicate that the mix of owners and renters has shifted in favor of renters since the recession. Comparison of 2007 and Current Demand While the general method used to estimate demand has remained the same, most of the assumptions have changed significantly over the past 10 years. While both the rental and for sale housing markets are now greatly exceeding 2007 price points, many other elements of the current economy are more fragile, and overall demand projections and hous- ing gaps are lower than in 2007. Catch-up In 2007, the construction industry was extremely strong, and unfilled jobs were at a record high. This year, unfilled jobs present a significant challenge to employers, but do not match 2007 levels. With very low snowfall, this winter looks to APPENDIX D – METHODOLOGY & SOURCES 74 Rees Consulting, Inc. / Willliford, LLC APPENDICES fall short of the past few years’ economic activity as measured by sales tax receipts. This could mark the beginning of an economic slow-down for the Eagle River Valley, or the economy may rebound quickly with a strong summer visitor season and plentiful snow in 2018/2019. • Functional rental market is a new metric added in 2018 to address the extremely low vacancy rates, rapidly rising rents, and lack of consumer choice in the rental market. • In-commuters are always a challenging demographic to measure. However, 2018 employer survey responses align closely with State Demographer estimates, both of which show a significant decrease in in-commuters since 2007. This may be related to housing scarcity and competition for employees in neighboring communi ties. • Given relatively flat wages and significantly higher home prices and rental rates, the increase in the overcrowd ing in 2018 comes as no surprise. • When all of these factors are combined, there is an estimated 1,670 fewer units needed to meet current de mand than in 2007. Keep-up • In 2007, keep-up demand and the housing gap were projected out 12 years, through 2015. This year, twelve- year projections are also provided, but greater emphasis is placed on the nearer term forecasts of 2020 and 2025. This approach, combined with State Demographer estimates, has resulted in significantly lower job growth projections. • The rate at which employees are retiring has slowed quite a bit. In 2007, an estimated 275 new units were needed each year to fill housing gaps left by retiring employees, compared to only 110 units per year given cur rent conditions. Post-recession, many employees have pushed back their retirement dates, or made plans to scale back their work commitments without retiring. • While the overall estimates for housing units needed were much higher in 2007, so were the assumptions about what the market would provide. In 2018, the gap represents 61% of the total housing need, compared to only 27% in 2007. Comparison of Housing Demand Summary – 2007 and 2018 2007 2018 Change Catch-up Demand for unfilled jobs 1,420 1,110 (310) Rental Market -310 310 In-commuters 2,469 560 (1,909) Overcrowding 557 800 243 Total Catch-up 4,446 2,780 (1,666) Keep-up - Projected to Year 2015 2020 12 yrs/2 yrs Job Growth 4,776 1,030 (3,746) Retirees 3,284 220 (3,064) Total Keep-up 8,060 1,250 (6,810) Total need 12,506 4,030 (8,476) Gap 3,398 2,450 (948) 75Rees Consulting, Inc. / Willliford, LLC APPENDICES Definitions of housing tools by category presented in the survey. Incentives Density bonuses when workforce housing is built Fee waivers -- water/sewer tap fees or permits for workforce housing Reduced parking requirements for workforce housing Fast track processing -- workforce housing projects go to the front of the line for review Property tax exemption Development Requirements Commercial linkage: requiring new commercial development to provide housing Residential linkage: a type of impact fee on new residential construction Inclusionary Housing: a percentage of units in new subdivisions restricted for workforce housing Taxes Excise tax on short-term rentals, for example 3% - 5% - vote required Property tax (paid for by property owners) - vote required Sales tax (paid for by consumers) - vote required Public Initiatives Providing County or Town land that is vacant or under-utilized Town or County builds housing (like Miller Ranch and Chamonix) Town, County, or Housing Authority provide financing General fund revenues - appropriation by elected officials required Other Solutions - Employer assistance for housing -- rent or mortgage subsi-dies, etc. APPENDIX E – SURVEY DEFINITIONS OF TOOLS Rees Consulting, Inc. Eagle River Valley Housing Needs and Solutions 2018 May 8, 2018 ATTACHMENT 2 Acknowledgements Sponsor:Key Participants: •Eagle County Housing and Development Authority •Vail Valley Partnership •Employer Survey Respondents •Resident Survey Respondents •Focus group participants •Subject matter experts In collaboration with: Rees Consulting, Inc. Study Area Rees Consulting, Inc. Method Build on what we know Focus group/interviews Past studies Gather the most current data Resident survey –over 700 responses Employer survey –84 employers (27% of jobs) Secondary data from state demographer, etc. Rees Consulting, Inc. Part I -Key Findings •Housing costs continue to increase more rapidly than incomes •Extremely low vacancy and rising rents •Decrease in homeownership •Labor shortage and housing shortage are linked, hurting local employers Rees Consulting, Inc. Consensus on a Problem Rees Consulting, Inc. 85% 91% 50% 60% 70% 80% 90% 100% Employers Households “One of the more serious” + “The most critical” “Do you feel that the availability of housing that is affordable for the workforce in the Eagle River Valley is:” Jobs and Wages Rees Consulting, Inc. •Since 2007, incomes have increased 6% •Average employed person has 1.24 jobs •About 1,600 jobs unfilled for peak winter season •Average weekly wage $220 lower than Statewide Home Ownership Area Median Income (3 persons) = $80,600 Affordable Home Price = $316,000 Up Valley Mid Valley Down Valley Median 2017 Sale Price $1,100,000 $769,000 $429,000 AMI to Afford Median Price 334%234%130% %Listed Affordable to <100% AMI 4%7%26% Rees Consulting, Inc. Rental Housing Rees Consulting, Inc. Housing and Jobs Up ValleyDown Valley Current Residents Residents Want to Live Here Jobs 21%32%36% Current Residents Residents Want to Live Here Jobs 48%38%42% Current Residents Residents Who Want to Live Here Jobs 31%27%23% Rees Consulting, Inc. Mid Valley Total Housing Need Housing Gap Homes Needed Overcrowding 800 Rental market 310 In –commuters 560 Unfilled jobs 1,011 Total Catch-Up 2,780 Catch-Up –The Existing Need Rees Consulting, Inc. Total Housing Need Housing Gap 2020 2025 Retiring Employees 220 770 New Jobs 1,030 2,350 Total Keep -Up 1,250 3,120 Total –Housing Units Needed 4,030 5,900 Keep-up -Future Needs Rees Consulting, Inc. How Gap is measured Housing Gap 2020 Total Housing Units Needed 4,030 Supplied by the Free Market 1,580 Total Gap 2,450 Ownership gap, estimated 1,220 Rental gap, estimated 1,230 Rees Consulting, Inc. Ownership Gap –2020 preference by buyers Rees Consulting, Inc. Owner Units by AMI Max Affordable Price Up Valley Mid Valley Down Valley Total Where Owners Want to Live 26%39%35%100% <60%$253,000 48 72 66 186 100%$316,000 122 180 164 466 140%$443,000 173 256 234 663 200%$632,000 135 200 183 518 Over 200%>$632,000 90 134 122 346 Gap -# for sale units 480 510 230 1,220 green = market purple = gap blue = blend Based on MLS data in January 2018 Rental Gap –2020 preference by renters Rees Consulting, Inc. Rental Units by AMI Max Affordable Rent Up Valley Mid Valley Down Valley Total Where Renters want to live 42%40%18%100% <60%$1,200 212 202 91 505 100%$2,020 228 217 98 543 140%$2,820 143 136 62 341 200%$4,030 95 91 41 227 Over 200%>$4030 73 69 31 174 Gap -# of rental units 580 560 90 1,230 green = market purple = gap blue = blend Based on MLS data in January 2018 Part II -Solutions Rees Consulting, Inc. Ownership Considerations Rees Consulting, Inc. 95% of survey respondents want to own Testing Four Tradeoffs – •Current owners rank: location, price, size, type of home •Renters wanting to buy rank: price, location, size, type Deed restrictions widely understood and accepted Ownership Considerations Community Character is most important location attribute Rees Consulting, Inc. “locals or family-oriented, social opportunities, entertainment, restaurants, etc.” Proximity to work also highly important Renter Considerations Rees Consulting, Inc. Diversity of price points More studios and 1BRs Energy efficiency Deed restrictions Proximity to work is the most important location attribute Also, Community Character and Allow Pets Tools Rees Consulting, Inc. “Conceptually, how do you feel about the following strategies for increasing workforce housing in the Eagle River Valley and its communities?” Incentives Partnerships and Public Initiatives Development Regulations Funding Density bonuses Town/County Land Commercial Linkage Excise tax -STR Fee Waivers Town/County build housing Residential Linkage Property tax Reduced Parking Public Finance Inclusionary Housing Sales tax Fast Track Processing Property tax exemption General Fund revenue Strong Support for Tools Rees Consulting, Inc. Big numbers; solutions on hand Rees Consulting, Inc. •The time is likely not right for a single, dedicated, valley wide funding source; Numerous smaller sources are still powerful; •Take incremental steps and create partnerships; •Forge ahead and attract funding to projects and partnerships. Policy Considerations Rees Consulting, Inc. Demand calculations are just one factor in setting policy direction. Time is ripe for regional coordination and shared goals; no single community can solve this alone. Shape housing tools into strategies -Local policies and investment priorities drive housing outcomes. Set goals and objectives – •Build a spectrum of housing choices •Blend aspirational, attainable, and responsive to community values and vision •Balance “where want to live” and land opportunities •Community character is key! Questions for Decision Makers Rees Consulting, Inc. What do you see as the next steps going forward? What actions can we take to foster regional coordination, collaboration, and learning from one another? Questions for us? -Thank you - Full report is available at www.eaglecounty.us/housing Willa Williford Willa@willifordhousing.com 303-818-0096 Tori Franks Tori.franks@eaglecounty.us 970-328-8775 Rees Consulting, Inc. Kim Bell Williams Kim.williams@eaglecounty.us 970-328-8773 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Matt Pielsticker, AICP, Planning Director Meeting Date: May 8, 2018 Topic: REVIEW AND DIRECTION TO FINALIZE THE AVON WORKFORCE HOUSING PLAN 2018‐2021 ACTION BEFORE COUNCIL Council is asked to review the draft Avon Workforce Housing Plan 2018‐20121 and provide direction to finalize the document for adoption on June 12. SUMMARY Workforce housing has continually been emphasized as a priority by the Town Council. The importance of a proactive workforce housing program was reinforced in the 2017‐2019 Strategic Plan, and the 2017 Comprehensive Plan update goals and policies. On March 7, 2018 the Town Council conducted a Workforce Housing Retreat, facilitated by Willa Williford of Williford, LLC, and led by housing professionals from Eagle and Summit counties. The purpose of the Workforce Housing Retreat was to provide data regarding housing need, review Avon’s current workforce housing stock, learn about successful workforce housing projects in other jurisdictions, and for Council to develop actionable strategies for the Town. Attached for review is the draft Avon Workforce Housing Plan 2018‐2021. Willa Williford will be presenting the components of the plan at the May 8, 2018 meeting. The purpose of the work session is to gain feedback and direction to finalize the draft for adoption at a future meeting. QUESTIONS FOR COUNCIL 1. Do the proposed goals and objectives capture the discussion at the Housing Retreat? Does anything need to be added or changed? 2. Do you agree with the timeline and priorities outlined in Appendix A? Does anything need to move forward sooner, or be pushed back? 3. Do the investment criteria provide the right balance of guidance and flexibility? 4. Prior to 2014, Avon contributed $5,000 per year to the County‐wide down payment assistance program, but has not done so in recent years. At the retreat, we heard interest in resuming the practice. Should future contributions be appropriated, beginning in 2019? If so, would a priority be set for assistance being targeted to Avon properties and /or employees who work in Avon, including Town employees? NEXT STEPS  Incorporate Town Council comments, suggestions, and edits.  Format the document for final published design format.  Bring final Workforce Housing Plan to Town Council for adoption, scheduled for June 12. ATTACHMENT Draft Avon Workforce Housing Plan ‐ 2018‐2021 DRAFT - Avon Workforce Housing Plan 2018-2021 Willa Williford for Town of Avon “Avon’s vision is to provide a high quality of life, today and in the future, for a diverse population; and to promote their ability to live, work, visit and recreate in the community.” - TOWN OF AVON COMPREHENSIVE PLAN, ADOPTED MAY 23, 2017 Introduction The Town of Avon seeks to build upon a long history as a high amenity year-round resort community, strengthening its vibrant and inclusive community culture. The current Comprehensive Plan sets the vision for a diversity of exciting opportunities for residents, businesses, and visitors. The current housing market, which offers very few opportunities for year-round residents to put down roots in Avon, posses a challenge to this vision. On March 7, 2018, the Council conducted a Workforce Housing Retreat. This Plan is the outcome of that work. The Council identified potential community benefits of increasing workforce housing efforts to include: • More housing choices; • Increased economic stability and a more active year-round economy for local residents and businesses; • Greater ability to retain individuals and families throughout life and career phases, strengthening sense of community, opportunity, and quality of life; • Further the goals of the Climate Action Plan by reducing single occupant vehicle commuting; and • Greater opportunities for arts and culture to thrive. The Need Since the end of the recession jobs and population have been growing much more rapidly than housing inventory, creating many challenges: • frustration for employees seeking housing, • employers facing unfilled positions, turnover, higher training costs, and lost productivity, • precipitous increases in home prices, well beyond the means of most local residents, • extremely low vacancy rates, resulting in limited choices and rising costs for renters, and • negative impacts on individuals and families, who are spending a disproportionate amount of their income on housing, commuting long distances, and living in locations or situations that are not sustainable for the long term. Median home sale price in 2017 for the 81620 zip code was $702,000. The home price affordable to a median income family is less than half that at about $316,000. Only four homes were on the market for $316,000 or lower in early 2018. The rental market is similarly challenging: vacancy rates have been approaching zero, and since 2007, average rental rates have risen 48% across the Eagle River Valley. To meet the needs of local employees in the Eagle River Valley, over 4,000 additional homes will be required by 2020.1 In mid-valley, which includes Eagle Vail, Avon and Edwards, 1,500 homes will be needed. Subsidies or public/private partnerships are anticipated to be required for the majority of these homes to be financially feasible and affordable to local employees. Avon and the mid-valley are highly desired locations for local households. In a recent survey of Eagle River Valley households, 40% of renters and 39% of owners selected mid-valley as their first choice for where they want to live.2 Strengths and Assets Avon has numerous assets related to housing opportunities to build upon successes and lessons learned from previous housing initiatives: • An inventory of 670 workforce housing units currently, about 90% of which are for rent; • An Affordable Housing Fund balance of about $570,000; • A partnership with The Valley Home Store for monitoring and compliance of deed restrictions on for-sale homes; • Employee housing mitigation requirements for some new commercial development; • Successful PUD negotiations to provide deed restricted housing resulting in 63 perpetually restricted units to date. • History of regional collaboration with public sector, non-profit and private sector on housing issues; • Significant inventory of attainable free market housing; • Significant opportunities for development and redevelopment, with water rights, transit access and existing density on vacant and underutilized private parcels; and • Adopted comprehensive plan, which sets workforce housing as top policy priority. Goals and Objectives The Comprehensive Plan sets two housing goals (each with numerous supporting policies): • Achieve a diverse range of housing densities, styles, and types, including rental and for sale, to serve all segments of the population. • Coordinate with neighboring communities to provide an attainable housing program that incorporates both rental and ownership opportunities, affordable for local working families. Council discussed setting measurable objectives; specific recommendations for discussion and incorporation in final Plan are as follows: • Focus on increasing deed restricted homeownership opportunities at $450,000 and below (equivalent to 140% Area Median Income for a household of three people). • Grow the inventory of homeownership more quickly then rental housing, to create a more balanced portfolio, with a long-term goal of about 50% rental, 50% ownership. 1 Eagle River Valley Housing Needs and Solutions 2018, Rees and Williford 2 Ibid. • When considering new rental housing, prioritize price point, quality and amenities attractive to “step up” renters and seniors looking to downsize, focusing on the 60-140% AMI level. • Stabilize or increase the percentage of year-round residents; currently 55% of all homes in Avon are occupied by year-round residents. • Stabilize or increase the percentage of employees who live and work in Avon. • Seek to add at least 50 deed restricted units to the inventory during the plan period. • As sites redevelop, strive for “no net loss” of housing serving the local workforce. • Review and re-evaluate goals and objectives in late 2021 or early 2022. Tools and Strategies In order to achieve these goals and objectives, Council and staff identified the following tools and strategies. Tools and strategies are organized into three categories: Housing Development and Retention, Funding, and Housing Policy. A timeline for implementation is included in Appendix A. Housing Development and Retention A top priority is pursuing workforce housing development on Town owned land. The Council reviewed the inventory of seven Town on parcels in March 2018 and identified two parcels that are appropriate to move forward with workforce housing development in the next three years. These sites are Wildwood and Swift Gulch. This Plan is recommending that public outreach, feasibility analysis, and conceptual design for Wildwood move forward this year. Planning for Swift Gulch can begin when there is a clear path forward for finance, entitlements, and construction for Wildwood. Both sites are anticipated to be developed through public/private partnerships. Two strategies have been identified to preserve market rate attainable housing that is currently at risk of being lost to locals through rapid price increases and/or redevelopment. The first strategy is to “buy-down” attainable market rate units and preserve their affordability with a permanent deed restriction. Nearby precedents for this approach include Vail InDEED and Eagle Valley Ranch. This is a homeownership strategy. The second strategy is to secure right of first refusal on properties that currently house local employees. A right of first refusal creates the opportunity for the Town to purchase and preserve these assets, if the owner decides to sell and the Town decides the property is a priority and is able to secure finance timely. This is a mobile home and multi-family housing strategy. This program development is anticipated to begin in 2019. Investing in and maintaining the current inventory of deed restricted housing is an important component of housing development and retention. Much of the affordable rental housing inventory has recently been renovated, however, the homeownership inventory is in need of capital planning and reinvestment. The Town of Avon has recently contracted with The Valley Home Store to assist with compliance monitoring and re-sale of deed restricted properties. The next phase of this effort will be to conduct a capital needs assessment of the assets and make a plan for funding and implementing capital improvements. This effort is anticipated to begin in 2020. Cultivating additional public private partnerships and seeking to purchase additional land for workforce housing are additional strategies that will be ongoing. Funding Funding is a key ingredient to building and maintaining workforce housing. Investing (or “leveraging”) local funds is essential to attracting the outside funding sources such as grants, loans, tax credits and private investments that, when combined, make housing development financially feasible. Currently, the Housing Fund has a balance of about $570,000. It is anticipated that those funds will be invested in the efforts outlined in this Plan, and that additional funds will be needed moving forward. Council and staff envision a two-step process to secure additional local funds for housing. The first step will be to review current revenue streams and determine if additional funds can be directed to housing efforts through the annual budgeting process. This review will begin at the end of 2018.Depending on the outcome of the first step, the second step be to seek opportunities for new funding sources, which could include approaches such as increased linkage fees, regional collaboration, and/or a local ballot initiative. Housing Policy The Town of Avon seeks to use both incentives and regulations to create a policy environment that is favorable for workforce housing. The Town has a strong track record in including workforce housing in PUD approvals. The Town will continue to encourage, and, in some instances, require workforce housing in new planning approvals. Initiatives to update and strengthen housing policies will include: • Update mitigation/linkage policies to be more proactive in addressing workforce housing needs. Current policies are limited to very narrowly defined locations and development requests, and the current mitigation rate is low compared with peer communities. • Consider implementing an inclusionary housing policy. Inclusionary housing was considered in the 2010 code update, but was not adopted at that time. Council expressed renewed interest in inclusionary housing as a tool to create housing affordable to the local workforce. It is recommended to look at inclusionary housing and mitigation/linkage at the same time, to better understand how the two tools complement each other, support policy goals, and maintain a level playing field for commercial and residential development. • Conducting a comprehensive review of fees associated with new construction including entitlements and water/sewer taps. This review will look at both Town of Avon and Eagle River Water and Sanitation District fee structures and will be a collaborative process between the two agencies to recommend updates. A goal of the process will be to align fees with workforce housing policy goals, as well as formalize a fee waiver/reimbursement process for workforce housing that meets defined criteria. The Town of Avon understands the regional nature of housing, transportation and employment in the Eagle River Valley. In pursuit of workforce housing, the Town will continue to participate in regional studies, seek opportunities to participate in regionally significant workforce housing developments beyond Town boundaries, and participate in employer forums, and be an advocate for other regional initiatives. Leadership and Responsibilities The work of furthering workforce housing in Avon is currently shared among several Town departments and outside partners. The Town Council sets goals, budget, workplan and adopts new regulations and approves or denies land use requests. Working on behalf of the Council, the Town Manager’s office is responsible for public/private partnerships, and long-range planning and strategy. The Planning Office is responsible for existing and proposed inventory, PUD processes, permits and fees, and land use code related initiatives. Revenue sources, budgeting, financing and bonding are supported by the Town Finance Director. The Town contracts with The Valley Home Store for deed restriction monitoring, compliance, and sales of deed restricted properties. This structure is proposed to remain in place, with additional capacity contracted from time to time. These responsibilities are further defined in Appendix A. Investment Criteria As the Town of Avon seeks to deploy current and future Housing Fund balance to increase workforce housing opportunities, the Town will evaluate the opportunity based on the following criteria: 1. Does the proposed project meet the goals and objectives of the Comp Plan and this Housing Plan? 2. Does the investment fill a gap that would otherwise keep the proposed project from moving forward? 3. Does the project encourage resource conservation, energy efficiency and sustainable development? Does the location offer access to multi-model transportation options and other services? 4. Is there participation from other regional partners, public and/or private? APPENDIX A – Timeline and Responsibilities Lead 2018 2019 2020 2021 Longer Term Housing Development and Rentention Town Owned Property #1 - Wildwood Conduct Feasbility Avon - Planning Seek Development Partner(s)Avon - Planning Select partner Avon - Council Entitlement and finance TBD Construct TBD Evaluate purchase of additional land for housing Avon - Manager Cultivate Public Private Partnerships Avon - Manager Develop a "buy-down" program Evalute best best practices from other communities Avon - Planning/TVHS Develop program guidelines for deed restrictions Avon - Planning/TVHS Seek right of first refusal on key existing properties Avon - Manager Town Owned Property #2 - Swift Gulch Conduct Feasbility Avon - Planning Seek Development Partner(s)Avon - Planning Select partner Avon - Council Entitlement and finance TBD Construct TBD Invest in and maintain existing inventory Conduct capital assessment of DR ownership inventory Avon - Planning/TVHS Funding Review Current Revenue Streams and evalute fund contributions Include annual allocation for housing in budget process Avon - Finance Approve fund transfers Avon - Council Seek opportunities for new funding sources Avon - Manager Housing Policy Consider Mitigation/Linkage Updates and Inclusionary Housing Hire consultant(s)Avon- Planning Review current and previous ordinances and calcs Avon- Planning Analyize opportunities Avon- Planning Conduct outreach Avon- Planning Revise and recommend adoption Avon- PZC Consider for Adoption Avon - Council Formalize Fee Waiver Program Review Town of Avon building and planning fees Avon- Planning Review water tap structure with ERWSD Avon- Planning Codify requirements for waivers/reimbursements Avon- Council Particiapte in regional studies, site analysis, and employer forums Avon- Planning APPENDIX B – Definitions and Best Practices Topic Definition Best Practices Inclusionary Housing A percentage of residential units in new subdivisions/PUDs are workforce housing. Market homes support workforce units. Only effective if new subdivisions/PUDs are developed/ redeveloped. Carbondale, Eagle, Eagle County, San Miguel County Linkage/Mitigation Requiring new homes and/or commercial development to contribute to workforce housing relative to demand generated by the new construction. For residential, mitigation rate often increases with house size, and deed restricted units are typically exempt. Fees in lieu provides revenue stream that fluctuates with building activity. Documented relationship between fee and impact required. Telluride, Aspen, Mt. Crested Butte Fee Waivers Water/sewer tap fees, building permit or other fees waived in part or whole to reduce cost to build affordable housing. General funds or other source need to cover cost of fees waived. Breckenridge, Crested Butte Dedicated Funding Source Funding is a core component of building housing and running successful housing programs. Few programs begin with funding; rather finding funding is an incremental process that goes hand in hand with creating goals and objectives, developing policies, securing appropriate land for housing, and moving forward with public/private partnerships. Dedicated funding sources take many forms including grants, fee in lieu payments, taxes, voluntary assessments, proceeds from rents or sales. Summit County, Steamboat Springs, Crested Butte, Aspen, Telluride Public/Private Partnerships Partnering with developers to build homes, typically on publicly-owned sites, or using other public resources such as property tax exemption. RFQ/RFP process effective for selecting development partners. Ownership of land can be retained with long-term land leases. Eagle County, Vail, Breckenridge, Boulder Land Banking Acquiring land for eventual housing development when specific project is not known. Summit County, Vail, Boulder County, Breckenridge, Telluride Buy Down of Market Homes Usually involves buying down units with public funds. Deed restrictions imposed for permanent affordability. Inability to obtain condo mortgages can result in units being rented. Public sector purchases can drive up prices for low-end market units. Breckenridge, Telluride, Whitefish MT No Net Loss Policy Requiring replacement of housing occupied by the workforce when redevelopment occurs. Similarly-priced units should be replaced on site or another site, or a fee- in-lieu of replacement could be allowed. Boulder, Basalt APPENDIX C - Area Median Income for Eagle County 2017 Area Median Income for Eagle County, 2017 Household Size 1 2 3 4 5 6 AMI Classifications Extremely Low (30% AMI) $18,810 $21,480 $24,180 26,850 $29,010 $31,170 Very Low (50% AMI) $31,350 $35,800 $40,300 $44,750 $48,350 $51,950 60% AMI (LIHTC max) $37,620 $42,960 $48,360 $53,700 $58,020 $62,340 Low (80% AMI) $50,160 $57,280 $64,480 $71,600 $77,360 $83,120 Median (100% AMI) $62,700 $71,600 $80,600 $89,500 $96,700 $103,900 Moderate/Middle (140% AMI) $87,780 $100,240 $112,840 $125,300 $135,380 $145,460 Upper (200% AMI) $125,400 $143,200 $161,200 $179,000 $193,400 $207,800 Source: CHFA Affordable Home Price Calculation by AMI, 2017 AMI % 30% 60% 100% 140% 200% Household Income – 3 persons $24,180 $48,360 $80,600 $112,840 $161,200 Affordable Purchase price Affordable monthly payment (30%) $605 $1,209 $2,418 $2,821 $4,030 Principal & interest (80% of pmt) $484 $967 $1,934 $2,257 $3,224 HOA, taxes, insurance (20% of pmt) $121 $242 $403 $564 $806 Mortgage Interest rate 5.00% 5.00% 5.00% 5.00% 5.00% Max mortgage $90,086 $180,172 $300,343 $420,400 $600,572 Max Affordable Price -5% down $95,000 $190,000 $316,000 $443,000 $632,000 Affordable Rent + utilities $605 $1,209 $2,418 $2,821 $4,030 Affordable purchase prices were calculated assuming that a household would have 5% for a down payment, and would qualify for a loan that 30% of their monthly income. HOA, property taxes and insurance of 20% where included. The max mortgage assumes an interest rate of 5.0%, which is about half point higher than prevailing rates for 30-year fixed rate mortgages. Interest rates are rising, however, and will have a profound impact on housing affordability. A one-point increase in the rate, as occurred in 2013, would drop the affordable purchase price for a median income household by $30,000 to $35,000. Colorado World Resorts - Rezoning – Ordinance 18-05 1 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Matt Pielsticker, AICP, Planning Director Meeting Date: May 8, 2018 Agenda Topic: PUBLIC HEARING: FIRST READING OF ORDINANCE 18-05, REVIEW AND ACTION ON THE REZONING APPLICATION FOR THE FOLSON ANNEXATION PROPERTY; FROM PLANNED UNIT DEVELOPMENT TO THE RESIDENTIAL HIGH DENSITY, OPEN SPACE, LANDSCAPING, AND DRAINAGE, AND SHORT TERM RENTAL OVERLAY ZONE DISTRICTS ACTION BEFORE COUNCIL Vote on first reading of Ordinance 18-05 (ATTACHMENT A), approving a Rezoning Application for the Folson Annexation Property, from Planned Unit Development (PUD) to the Residential High Density (RH), Open Space, Landscaping, and Drainage (OLD), and Short Term Rental Overlay (STRO) zone districts. PROPOSED MOTION “I move to approve Ordinance 18-05 (ATTACHMENT A), thereby approving a Rezoning Application for the Folson Annexation Property from PUD to the RH, OLD, and STRO zone districts.” SUMMARY The Applicant and property owner, Colorado World Resorts, LLC, has re-applied for a Rezoning Application. The Application would change the zoning of the bottom portion of the property, measuring approximately 4 acres, from PUD to the RH zone district. It would include the ability to rent units for fewer than 30 days at a time by including the STRO overlay district. The upper area of the property would be zoned OLD, and accordingly, no development could take place on the steeper hillsides. The Planning and Zoning Commission reviewed the Application at its April 17, 2018 meeting, whereby it approved Findings of Fact and a Record of Decision recommending that the Town Council approve. The Planning and Zoning Commission found conformance with the review criteria and general compatibility with the neighboring vicinity. All of the Planning and Zoning Commission meeting materials are attached to this report as ATTACHMENT B; this includes the adopted Findings of Fact and Record of Decision, April 17, 2018 Staff Report, March 17, 2018 Rezoning Application, and outside agency referral with response comments. AVAILABLE ACTIONS • Approve First Reading, setting the Public Hearing date for May 22, 2018. • Continue First Reading to the May 22, 2018 Meeting (or any other hearing within 65 days) • Deny First Reading ATTACHMENTS A. Ordinance 18-05 B. PZC Materials: Staff Report, Application, & Agency Referral Comments Ord 18-05 CO World Resorts Rezoning May 8, 2018 FIRST READING Page 1 of 5 TOWN OF AVON ORDINANCE 18-05 APPROVING A REZONING APPLICATION FOR THE FOLSON ANNEXATION, FROM PLANNED UNIT DEVELOPMENT TO THE RESIDENTIAL HIGH DENSITY, OPEN SPACE, LANDSCAPING AND DRAINAGE, AND SHORT TERM RENTAL OVERLAY ZONE DISTRICTS RECITALS WHEREAS, the Town of Avon (“Town”) is a home rule municipal corporation and body politic organized under the laws of the State of Colorado and possessing the maximum powers, authority and privileges to which it is entitled under Colorado law; and WHEREAS, Colorado World Resorts, LLC (“Applicant”) has submitted a Rezoning application for certain property to apply the Residential High Density (“RH”), Open Space, Landscaping, and Drainage (“OLD”), and Short Term Rental Overlay (“STRO”) zone district classifications, such property is described as follows: 38388 Highway 6, Avon, CO 81620; as is also described in the Quit Claim Deed, recorded in the Eagle County Clerk and Recorder’s office at Reception Number 201803580 (“Property”); WHEREAS, the Town’s Planning & Zoning Commission (“PZC”), after publishing and posting notice as required by law, held a public hearing on April 17, 2018; and prior to formulating a recommendation to the Town Council considered all comments, testimony, evidence, agency referrals, and staff report dated April 17, 2018; and then took action with a unanimous recommendation to the Town Council for approval of the Application with approval of Findings of Fact and a Record of Decision; and WHEREAS, in accordance with AMC Section 7.12.020, Town Council, and in addition to other authority granted by the Town Charter, its ordinances and State of Colorado law, the Town Council has application review and decision-making authority to approve, approve with conditions or deny the Application; and WHEREAS, the Town Council of the Town of Avon, after publishing and posting notice in accordance with the requirements of AMC Section 7.16.020(d), Step 4: Notice, held public hearings on May 8, 2018 and May 22, 2018, and prior to taking final action considered all comments, testimony, evidence and Town Staff reports; and then took action by approving this Ordinance; and WHEREAS, pursuant to AMC Section 7.16.050(c), Review Criteria the Town Council has considered the applicable review criteria for a Rezoning application; and ATTACHMENT A Ord 18-05 CO World Resorts Rezoning May 8, 2018 FIRST READING Page 2 of 5 WHEREAS, the Application complies with AMC Section 7.16.050(c), Review Criteria, and is consistent with the Comprehensive Plan’s goal of providing a balance of land uses, and inviting guest accommodations that strengthen Avon’s identity as both a year-round residential community and a tourism center; and WHEREAS, the Property is physically suitable for residential land use at a density and scale outlined in AMC Section 7.24.040, Table of Allowed Uses; and WHEREAS, the Application is in conformance with the Future Land Use Map’s designations in the Avon Comprehensive Plan, which depicts Residential High Density and Open Space land use designations for the Property; and WHEREAS, the Application will provide for orderly, efficient use of the Property, while at the same time conserving the value of the investments of owners of property in the Town in accordance with the Purpose statements in the Avon Development Code; and WHEREAS, approval of this Ordinance on First Reading is intended only to confirm the Town Council desires to comply with the requirements of the Avon Home Rule Charter by setting a Public Hearing in order to provide the public an opportunity to present testimony and evidence regarding the application, and that approval of this Ordinance on First Reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this Ordinance. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Rezoning. The Property is hereby rezoned and the Official Town of Avon Zoning Map shall be amended to designate the Property as RH, OLD, and STRO as depicted in Exhibit A. Section 3. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it has passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. ATTACHMENT A Ord 18-05 CO World Resorts Rezoning May 8, 2018 FIRST READING Page 3 of 5 Section 4. Effective Date. This Ordinance shall take effect thirty (30) days after final adoption in accordance with Section 6.4 of the Avon Home Rule Charter. Section 5. Safety Clause. The Town Council hereby finds, determines and declares this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public and this Ordinance is necessary for the preservation of health and safety and for the protection of pubic convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 6. Correction of Errors. Town Staff is authorized to insert proper dates, references to recording information and make similar changes, and to correct any typographical, grammatical, cross-reference, or other errors which may be discovered in any documents associated with this Ordinance and documents approved by this Ordinance provided that such corrections do not change the substantive terms and provisions of such documents. Section 7. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. [EXECUTION PAGE FOLLOWS] ATTACHMENT A Ord 18-05 CO World Resorts Rezoning May 8, 2018 FIRST READING Page 4 of 5 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on May 8, 2018 and setting such public hearing for May 22, 2018 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado. BY: ATTEST: ____________________________ ____________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk ADOPTED ON SECOND AND FINAL READING on May 22, 2018. BY: ATTEST: ____________________________ ____________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk APPROVED AS TO FORM: ____________________________ Eric J. Heil, Town Attorney ATTACHMENT A Ord 18-05 CO World Resorts Rezoning May 8, 2018 FIRST READING Page 5 of 5 EXHIBIT A ATTACHMENT A ATTACHMENT B CO World Resorts Rezoning 1 Staff Report – Rezoning April 17, 2018 Planning & Zoning Commission Meeting Project File #REZ18002 Current Zoning Planned Unit Development Proposed Zoning Residential High Density | Open Space, Landscaping, and Drainage Address Not Assigned | Highway 6 Legal Description Section 12, Township 5, Range 82 PCLIN, NW ¼ of SE ¼ Subdivision Prepared By Matt Pielsticker, AICP, Planning Director Introduction A public hearing will be conducted to review a rezoning application. The application would change the zoning of the Colorado World Resorts parcel from Planned Unit Development (PUD) to the Residential High Density (RH) and Open Space, Landscaping, and Drainage (OLD) zone districts. The proposal also includes the Short-Term Rental Overlay (STRO) district be applied to permit rentals of units for fewer than 30 days at a time. A “for sale” condominium project is currently being considered for development. The application (Attachment A) contains a project description and response to the mandatory review criteria, which are also outlined herein. Process The review process requires a noticed public hearing with PZC, and a recommendation to Town Council. The Town Council shall review and render a final decision on the Rezoning application after conducting another public hearing, and action on two readings of an Ordinance. Development and design review of buildings would be a separate process with a Major Design and Development application(s). Available Options 1. Continue the Public Hearing, pending additional information. 2. Motion and vote to Recommend Town Council Approval; directing staff to prepare Findings of Fact and Record of Decision. 3. Motion and vote to Recommend Town Council Denial; directing staff to prepare Findings of Fact and Record of Decision. Notification In addition to the public notification requirements and mailing to owners within 300’, agency referrals were sent to special districts and land managers for comments. The referral form and comments received by outside agencies is attached (Attachment B). The comments identify several items to be addressed prior to, or at the time of a development plan application, including: wildfire, erosion control, wildlife, debris flow and geologic conditions mitigation, and water rights. Rezoning Review Criteria Analysis The review process and review criteria for zoning amendments are governed by AMC §7.16.050, Rezonings. PZC shall use the following criteria as the basis for a recommendation on the Rezoning Application to the Avon Town Council: ATTACHMENT B CO World Resorts Rezoning 2 (1) Evidence of substantial compliance with the purpose of the Development Code; Staff Response: The Purpose of the Development Code is to divide the Town into zones and regulate the siting and appearance of built structures. The overarching goals of the Development Code are summarized below: • Avoid traffic congestion and promote mass transportation and enhancement of attractive and economical pedestrian opportunities. • Promote light, air, landscaping and opens space while avoiding sprawl and hapless environmental degradation. • Sustain our local water resources. • Provide adequate open space, while sustaining the tourist-based economy, and preserving property values. • Promote architectural design which is compatible, functional, and complimentary to Avon’s sub-alpine environment. The application has been reviewed and found complimentary to the purpose statements of the Development Code. The proposal for RH zoning on the Highway 6 & 24 frontage, coupled with OLD zoning on the upper hillside, will ensure a compact development form that meets the goals of the development standards. This achieved, in part, by avoiding steep topography and providing open space. (2) Consistency with the Avon Comprehensive Plan; Staff Response: The application is consistent with the overall goals and policies of the Comprehensive Plan. Rezoning to RH, OLD, and STRO is supported by the following goals and policies from the Avon Comprehensive Plan: Policy A.3.1: Zone annexed lands in conformance with the Future Land Use Plan and existing development standards. Policy B.1.4: Encourage developers to rezone properties from PUD to standard zone districts. Policy B.2.1: Attempt to meet the use and density guidelines on the Future Land Use Map. Goal B.4: Encourage commercial development that enhances Avon’s overall economic health, contributes to the community’s image and character, and provides residents and visitors with increased choices and services. Goal C.1: Ensure that development is compatible with existing and planned adjacent development and contributes to Avon’s community image and character. Policy G.1.3: Work with public and private landowners to identify opportunities for conservation easements, permanent open space protection tools, and access to open space. Policy G.2.1: Identify and avoid development in environmentally sensitive areas or steep hillsides. Policy H.1.3: Support development and annexation to incorporate recreational amenities, land for trails, and open space accessible to the public. ATTACHMENT B CO World Resorts Rezoning 3 The property is designated as Residential High Density and Open Space according to the Future Land Use Map (FLUM); therefore this application is in compliance. The location is unique, being one of only a few properties in the Town limits accessed from Highway 6. It is in District 4: U.S. Highway 6 Gateway District. The area includes all of the Highway 6 frontage from the subject property to West Beaver Creek Boulevard, and is focused on the day skier parking lots of Beaver Creek. The plan acknowledges that most of the parcels are outside of Avon’s municipal boundaries, but seeks coordination with Eagle County on future plans for the area. The planning principles for this district include: • Work with CDOT to enhance the U.S. Highway 6 right-of-way to provide a sense of arrival and departure for those traveling to and from Avon, and to strengthen Avon’s overall community image and identity. Staff Response: To be addressed with a Development Plan. • Screen ski area parking and other accessory uses Staff Response: Not applicable. • Creates strong pedestrian connections to the Riverfront and Town Center Districts. Staff Response: To be addressed with a Development Plan. The Mobility and Connectivity section of the Avon Development Code requires connectivity within projects, and outward to adjoining properties. • Minimizes cut areas and preserve areas of steep slopes. Buildings should be built into the hillside and stepped up with rising topography to reduce their dominance above U.S. Highway 6. Staff Response: To be addressed with Development Plan. The Natural Resource Protection standards in the Avon Development Code prohibit development on 40% slopes, and require stepping of buildings to respond to rising topography. The “dominance” above highway 6 should be mitigated with 60’ maximum building height and articulation requirements in the design standards. • Shares property access when appropriate. Staff Response: To be addressed with Development Plan. The adjoining parcel includes an access easement and it may be appropriate to utilize shared access, with or without the need for emergency access. • Preserves access to the Eagle River. Staff Response: Not applicable. The above planning principles are less related to underlying zoning than they are to physical development, landscaping, and environmental controls, and connectivity. The finer details of a future project would be vetted with a Development Plan application before the Planning and Zoning Commission. Keeping development closer to Highway 6, without necessitating large cuts and retaining walls in the hillside, would help achieve some of these planning principles. (3) Physical suitability of the land for the proposed development or subdivision; ATTACHMENT B CO World Resorts Rezoning 4 Staff Response: The areas abutting highway 6 and 24 are suitable for development called out in the RH zone district. Short term rentals can also be accommodated in this area of the property with more gentle topography. The upper acreage is not appropriate for development, and not permitted by the Avon Development Code; therefore, rezoning this area to the OLD zone district will help to preserve the land as it is today, and accommodate recreational use (i.e. trails) if desired in the future. The RH district dimensional standards are as follows: At 20 Dwelling Units per acre, and a 60’ maximum height, the proposed RH zoning would be complementary to the adjacent Ascent development. (4) Compatibility with surrounding land uses; Staff Response: The surrounding land uses include: Ascent condominiums with vacation rentals, Highway 6, undeveloped land between the River Oaks condominiums to the east, and open space including USFS property. Residential land use is compatible with all the surrounding land uses. Basecamp is not directly abutting the property, however, that property is in a residential townhome configuration with short term rental allowances. (5) Whether the proposed rezoning is justified by changed or changing conditions in the character of the area proposed to be rezoned; Staff Response: The property has been historically zoned SPA and PUD without a development plan or approved standards. Rezoning to RH/OLD/STRO is justified because all properties located in Avon’s boundaries in the vicinity have been zoned and are either developed or under construction. Demand for residential units is well documented in the valley, and keeping development residential in nature is compatible with the character of the area. (6) Whether there are adequate facilities available to serve development for the type and scope suggested by the proposed zone compared to the existing zoning, while maintaining adequate levels of service to existing development; Staff Response: Much of the infrastructure needed to serve the development is in close proximity. No water rights have been assigned to the property; therefore, water rights from the Upper Eagle Regional Water Authority (UERWA) must be obtained. The attached agency referrals reiterate this requirement. No comments from utility or special districts were received. Once a development plan application is received highlighting details of the residential development, the plans would be referred again for comments. ATTACHMENT B CO World Resorts Rezoning 5 (7) Whether the rezoning is consistent with the stated purpose of the proposed zoning district(s); Staff Response: The rezoning is found to be consistent with the stated purpose of the MC and OLD zone districts. As outlined in Sec. 7.20.050(d), the RH district “The RH district is intended to provide for high- density, multi-family residential uses including townhomes and multi-family structures. This district should be in close proximity to the Town Center or an arterial road. This district implements the residential high density classification of the Avon Future Land Use Plan.” The RH district permits Townhome and Multi-family construction type. Multi-family developments do not permit “hotels” or “lodge” defined uses. The OLD district is “intended for areas that will be public or private undeveloped open spaces. Some landscaping and drainage control work may be necessary and desirable. The OLD district may also be used to preserve and protect land areas of special or unusual ecological or geographic interest. There are no dimensional requirements for this district.” The upper reaches of the property have unique rock formations and a tree canopy distinct from other valley floor parcels in Avon. The upper areas within the open space will be preserved and open to public use. The STRO is established as an overlay district to permit rentals of units fewer than 30 days at a time. There are no other restrictions in place for rentals, other than obtainment of licenses with the Town and remittance of accommodation taxes. The STRO intent statement reads “The STRO district is intended to allow short term rentals of properties, including but not limited to accommodation, apartments, bed and breakfast, condominium, hotel, lodge, motel and residential properties for periods fewer than thirty (30) days subject to the provisions of this Chapter. The STRO zone district shall be an overlay zone district which shall apply to allow short term rentals of properties. Properties in the STRO zone district shall otherwise be subject to all requirements of the underlying zone district.” In this case the future project could be apartments, condominiums, or other residential properties, and all other requirements of the RH district would remain in force. (8) That, compared to the existing zoning, the rezoning is not likely to result in adverse impacts upon the natural environment, including air, water, noise, stormwater management, wildlife, and vegetation, or such impacts will be substantially mitigated; Staff Response: Staff does not anticipate any adverse impacts upon the natural environment. By rezoning much of the upper portion of the property as OLD, it would be protected from development or further impacts. Development must conform to the environmental regulations contained in Title 7: Development Code. (9) That, compared to the existing zoning, the rezoning is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; Staff Response: The existing zoning does not permit any development, and therefore this criterion is not applicable. With that being said, no substantive impacts to other properties in the vicinity are expected. Natural and manmade buffers existing in all directions of the property. (10) For rezoning within an existing PUD, consistency with the relevant PUD Master Plan as reflected in the approval of the applicable PUD; and, Staff Response: Not applicable. ATTACHMENT B CO World Resorts Rezoning 6 (11) Adequate mitigation is required for zoning amendment applications which result in greater intensity of land use or increased demands on public facilities and infrastructure. Staff Response: No direct mitigation is recommended for the rezoning application. If rezoned RH and OLD, staff does not foresee a significant increase in demands on public infrastructure. Any incremental demand from short term rental usage would be offset by the fees and taxes associated with such use on the property. Recommended Motion: “I move to recommend Town Council approval of Case #REZ18002, the Colorado World Resorts rezoning application, together with the findings of fact listed in staff’s report.” The following Findings may be applied: 1. The Application was reviewed in accordance §7.16.050, Rezonings, Avon Development Code; 2. The application and supporting documentation provides sufficient information for PZC to determine that the application complies with the review criteria and Avon Comprehensive Plan; 3. The Application is substantially compliant with the purpose statements of the Development Code by providing for the orderly, efficient use of the Property, while at the same time conserving the value of the investments of owners of property in Town; and 4. The Planning and Zoning Commission held a public hearing on April 17, 2018, and considered all written reports, referral comments, and public testimony, prior to making a formal recommendation to the Town Council. 5. The RH, OLD, and STRO districts are found to be compatible with adjacent residential development and open space surrounding the property. Attachments A. Application Narrative B. Agency Referral Comments ATTACHMENT B Colorado World Resorts, LLC TAB Associates, Inc. Colorado World Resorts Re-Zoning Application March 17, 2018 Revised ATTACHMENT B 1 | P a g e PROJECT TEAM Owner Colorado World Resorts, LLC 6460 S. Quebec St Building 5 Centennial, CO 80111 Colorado World Resorts LLC and its predecessor companies have been family owned and operated in Denver, CO for over 25 years. Since founding, the company has built, remodeled and operated 17 branded hotels in the Denver area (3 new and 14 remodeled). Including other members of the team over 60 hotels have been owned and/or operated in the Denver market area. The company is an approved Hilton Hotel brand builder and operator. Brands built and operated include Ramada, Days Inn, Hampton Inn and Suites, Fairfield Inn and Suites, Microtel, Wingate, Clarion and Super 8, IHG Hotels and independently branded hotels. The company also has roots as a European custom home builder. They have built over 500 homes (ranging from 3,000s.f. - 40,000 s.f.) in the Denver area and has also completed over 2 million square feet of home and commercial remodeling. This, combined with the team’s avid love of skiing, mountaineering, golf, outdoor sports and the Vail Beaver Creek area, will result in a beautifully designed and meticulously operated property over the long term. CWR (as a show of good faith) has recently closed on this property showing the dedication to making this project work. Architect TAB Associates, Inc. 56 Edwards Village Blvd Suite 210 Edwards, CO 81632 Tab Bonidy, President Greg Macik, Principal Civil Engineering Alpine Engineering, Inc. P.O. Box 97 Edwards, CO 81632 (970) 926-3373 (970) 926-3390 fax Geology Hepworth-Pawlak Geotechnical 5020 Road 154 Glenwood Springs, CO 81601 (970) 945-7988 (970) 945-8454 fax Wetlands Western Ecological Resource 711 Walnut Street Boulder, CO 80302 (303) 449-9009 (303) 449-9038 fax Traffic LSC Transportation Consultants, Inc. 1889 York Street Denver, CO 80206 (303) 333-1105 (303) 333-1107 fax Environmental Impact Report Watershed Environmental Consultants, Inc. P.O. Box 4618 Eagle, CO 81631 (970) 328-4364 (970) 328-4364 fax ATTACHMENT B 2 | P a g e Project Overview and Process This submittal is for the Re-Zoning of the existing property to Residential High Density (RH) with Short Term Rental Overlay (STR) district and in addition an Open Space (OLD) district. The property will be split into separate zone districts. The northern portion is slated for the RH/STR district and the south portion shall be designated as the OLD district. CWR is still considering a trail system in the OLD district to be used by residents and Town of Avon. It is the intent of CWR to develop this property within the RH/STR zoning dimensions and Town Code. Current consideration is a for sale condominium project. The current property is loosely zoned PUD. CWR is requesting the property be zoned so they can determine what is an appropriate project based on the zoning approved for this project. CURRENT - FUTURE LAND USE MAP Property The property is commonly known as the Folson property. Colorado World Resorts, LLC, as of December 20th is the new Owner of the property. The 21.52 acres site is contiguous to and east of the Ascent Development which is directly east of the Beaver Creek Roundabout. The project site does begin to rise steeply after the rather flat front portion of the site. We have concentrated the development on the lower flat section of the site to avoid as much as possible the steep slopes of the site. There is approximately 4.2 acres of developable property (40% or less of slope). 2.9 acres are located along the Hwy 6 frontage which does include a mix of 40% and higher within the same zone. There is a larger area of developable area of about 1 acre mid-way up the east property line. The balance of developable land is dispersed across the site. Per the work session it was discussed the Town staff would have the authority to make the determination of actually acreage to be used for density calculations. Other items on the site include an abandoned irrigation ditch (Fleck Ditch), the Gypsum cliffs, an old road cut and a view bench above Eagle-vail on the east side of the property. The lower portion of the site which has long been disturbed is trees less. Above the lower bench is forested mainly with Evergreen trees with some Aspen mixed in the lower sections. ATTACHMENT B 3 | P a g e Adjacent to the West is the Ascent Condominiums with approximately 46 units and Town owned open space. The lot is zoned PUD and does have a STR overlay. To the north is Hwy 6. The east property line is adjacent to Eagle-Vail open space and the south property line abuts National Forest. PROPOSED TOWN ZONING MAP DESIGN STANDARDS Rezoning 7.16.050(c) Residential High Density (RH) (c) Review Criteria. The PZC and Town Council shall use the following review criteria as the basis for recommendations and decisions on applications for rezonings: (1) Evidence of substantial compliance with the purpose of the Development Code; The development code and current TOA direction is to provide parcels with zoning. Since the parcel is not zoned it is appropriate the TOA provide a zoning designation. The extension of residential use onto this property is appropriate due to scale, traffic reductions and compatibility with the property geography. (2) Consistency with the Avon Comprehensive Plan; ATTACHMENT B 4 | P a g e The future land use map designates this property as Residential High Density and Open Space. In addition, during a joint Town Council and Planning and Zoning work session which favorably suggested the FLUM is correct and the desired type of zoning for this property. (3) Physical suitability of the land for the proposed development or subdivision; The property provides approximately 4.2 of designated developable area. The proximity of the majority of the developable area is adjacent to and existing PUD which has High Density Residential. Access will be gained from Hwy 6. Initial conversations with CDOT has shown upgrades to Hwy 6 will be needed. For example: upgrades such as center left hand turn and right hand turn lanes into the site will be necessary. (4) Compatibility with surrounding land uses; Adjacent PUD zoning to the west at the Ascent and the new Red Building lot are residential and compatible with possible proposed construction. (5) Whether the proposed rezoning is justified by changed or changing conditions in the character of the area proposed to be rezoned; The area is designated as High Density Residential. We are currently not asking for additional dimensional changes beyond what is stated in the Town Code and proposed zone district. (6) Whether there are adequate facilities available to serve development for the type and scope suggested by the proposed zone compared to the existing zoning, while maintaining adequate levels of service to existing development; Utilities are in close proximity and initial discussions with providers have shown services can be provided to the parcel. (7) Whether the rezoning is consistent with the stated purpose of the proposed zoning district; The area is designated as High Density Residential. We are currently not asking for additional dimensional changes beyond what is stated in the Town Code and proposed zone district. (8) That, compared to the existing zoning, the rezoning is not likely to result in adverse impacts upon the natural environment, including air, water, noise, stormwater management, wildlife and vegetation, or such impacts will be substantially mitigated; Current zoning is PUD, which in theory could produce a much large structure than the proposed zone district allows. We are proposing to design within the allowed zone district dimensions. (9) That, compared to the existing zoning, the rezoning is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; The area is designated as High Density Residential. We are currently not asking for additional dimensional changes beyond what is stated in the Town Code and proposed zone district. (10) For rezoning within an existing PUD, consistency with the relevant PUD Master Plan as reflected in the approval of the applicable PUD; and Not applicable. (11) Adequate mitigation is required for rezoning applications which result in greater intensity of land use or increased demands on public facilities and infrastructure. The residential zoning is anticipated to provide less land disturbance and traffic than previously proposed PUD applications. ATTACHMENT B 5 | P a g e Short Term Rental – Overlay (STR) (a) Short Term Rental Overlay - STRO. (1) Intention. The Short Term Rental Overlay (STRO) zone district is intended to allow short term rentals of properties, including but not limited to accommodation, apartments, bed and breakfast, condominium, hotel, lodge, motel and residential properties for periods fewer than thirty (30) days subject to the provisions of this Chapter. The STRO zone district shall be an overlay zone district which shall apply to allow short term rentals of properties. Properties in the STRO zone district shall otherwise be subject to all requirements of the underlying zone district. (2) Allowed Use. The following uses shall be permitted in the STRO District: (i) The uses permitted in the underlying zone district or planned unit development (PUD). (ii) Short term rental, except that short term rental use shall not be permitted for any residential unit which is deed restricted for affordable housing, long term residential use, primary residential use or full time residential use. (3) Short Term Rental. For the purpose of this Chapter, short term rental shall mean the rental of property for a total continuous duration of less than thirty (30) days. (4) Development Standards. The developments standards within this overlay zone district are regulated by the underlying zone district. (5) Sales and Public Accommodations Tax License. Any property owner who leases or rents property in the STRO District shall obtain a sales tax license in accordance with Chapter 3.08 and a public accommodations tax license in accordance with Chapter 3.28. The failure to obtain a sales tax license or public accommodations tax license prior to using property for short term rental in the STRO shall be a violation and subject to penalties as described in Title 3. (c) Review Criteria. The PZC and Town Council shall use the following review criteria as the basis for recommendations and decisions on applications for rezonings: (1) Evidence of substantial compliance with the purpose of the Development Code; There are currently short term overlay districts in the Town of Avon. The Ascent adjacent to this parcel does have an STR overlay district. It is appropriate to provide STR districts adjacent to an existing STR. (2) Consistency with the Avon Comprehensive Plan; STR districts are allowed per the Town Code. We agree the district would provide more traffic but at the same would allow the property to remain vibrant with activity year round and not be limited to second home buyers. (3) Physical suitability of the land for the proposed development or subdivision; The proposed zone district would allow Residential uses designated as possible use areas for Short Term Rental zoning overlay. (4) Compatibility with surrounding land uses; There is an existing STR adjacent to the property. (5) Whether the proposed rezoning is justified by changed or changing conditions in the character of the area proposed to be rezoned; The STR would not alter the proposed conditions of the area as an overlay to the proposed RH zone district. (6) Whether there are adequate facilities available to serve development for the type and scope suggested by the proposed zone compared to the existing zoning, while maintaining adequate levels of service to existing development; The STR zone district would not increase the demand calculations required by the utility companies. ATTACHMENT B 6 | P a g e (7) Whether the rezoning is consistent with the stated purpose of the proposed zoning district; The HD zone district does not specifically mention STR in the zone description. But, the STR description specifically mentions uses which are allowed in the HD district. (8) That, compared to the existing zoning, the rezoning is not likely to result in adverse impacts upon the natural environment, including air, water, noise, stormwater management, wildlife and vegetation, or such impacts will be substantially mitigated; The STR would not alter the proposed conditions of the area as an overlay to the proposed RH zone district. (9) That, compared to the existing zoning, the rezoning is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; The STR would not alter the proposed conditions of the area as an overlay to the proposed RH zone district. (10) For rezoning within an existing PUD, consistency with the relevant PUD Master Plan as reflected in the approval of the applicable PUD; and Not applicable. (11) Adequate mitigation is required for rezoning applications which result in greater intensity of land use or increased demands on public facilities and infrastructure. The STR would not alter the proposed conditions of the area as an overlay to the proposed RH zone district. Open Space (OLD) (c) Review Criteria. The PZC and Town Council shall use the following review criteria as the basis for recommendations and decisions on applications for rezonings: (1) Evidence of substantial compliance with the purpose of the Development Code; The development code outlines the need to provide open space as part of developments. (2) Consistency with the Avon Comprehensive Plan; The future land use map designates a portion of this property as Open Space. (3) Physical suitability of the land for the proposed development or subdivision; The proposed Open space property is adjacent to Open Space parcels on three sides. (4) Compatibility with surrounding land uses; The proposed Open space property is adjacent to Open Space parcels on three sides. (5) Whether the proposed rezoning is justified by changed or changing conditions in the character of the area proposed to be rezoned; The current parcel is zoned as PUD. The Open space parcel would prevent any development on the parcel. (6) Whether there are adequate facilities available to serve development for the type and scope suggested by the proposed zone compared to the existing zoning, while maintaining adequate levels of service to existing development; No impact will occur. (7) Whether the rezoning is consistent with the stated purpose of the proposed zoning district; The use will be open space consistent with current designations. (8) That, compared to the existing zoning, the rezoning is not likely to result in adverse impacts upon the natural environment, including air, water, noise, stormwater management, wildlife and vegetation, or such impacts will be substantially mitigated; No impacts from current condition. ATTACHMENT B 7 | P a g e (9) That, compared to the existing zoning, the rezoning is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; No impacts from current condition. (10) For rezoning within an existing PUD, consistency with the relevant PUD Master Plan as reflected in the approval of the applicable PUD; and Not applicable. (11) Adequate mitigation is required for rezoning applications which result in greater intensity of land use or increased demands on public facilities and infrastructure. No mitigation required. ATTACHMENT B Town of Avon Agency Referral March 15, 2018 – CO World Resorts Page 1 of 2 OUTSIDE AGENCY REFERRAL FORM TOWN OF AVON COMMUNITY DEVELOPMENT DATE TRANSMITTED: March 15, 2018 FILE: Colorado World Resorts, LLC Rezoning Case #: PUD REZ18002 Project Location: Parcel Number 210512400007 Owner: Colorado World Resorts, LLC Description: Rezoning of 21 acre parcel to the Residential High Density (RHD) Zone District, with Short Term Rental Overlay. Upper portions of the property would be zoned Parks (P). Document Link: www.avon.org/planning under “Current Land Use Applications” Your comments are an important part on the evaluation process. Your report and/or comments will be helpful in preparing a recommendation and establishing conditions for the request. If you have any comments on this application please respond in writing by Tuesday, April 10, 2018, at 5pm or we will assume you have no comments and/or objections. This file is scheduled for an initial public hearing with the Planning and Zoning Commission on Tuesday, April 17, at 5:00pm; followed by Public Hearing(s) before the Avon Town Council. COMMENTS TO: TOWN OF AVON PHONE NUMBER 970-748-4000 ATTN: DEBBIE HOPPE, TOWN CLERK EMAIL: dhoppe@avon.org PO BOX 975 AVON, CO 81620 REFERRALS: CDOT - Local Karen Berdaoulay Karen.Berdoulay@state.co.us CDOT - Grand Junction- Region 3 Dan Roussin daniel.roussin@state.co.us Department of Local Affairs Andy Hill andy.hill@state.co.us Division of Water Resources Megan Sullivan / Mike bender megan.sullivan@state.co.us mike.bender@state.co.us Colorado Geologic Survey Jill Carlson carlson@mines.edu CPW Bill Andree - 468 bill.andree@state.co.us Colorado Forest Service Ron Cousineau ron.cousineau@colostate.edu Health Department - Air Quality Rick Coffin richard.coffin@state.co.us Health Department - Water Quality Andy Poirot andrew.poirot@state.co.us Department of Local Affairs Shay Ives Greg Winkler shay.ives@state.co.us greg.winkler@state.co.us State Land Board Department of Natural Resources Jerod Smith Carol Brown jerod.smith@state.co.us carol.brown@state.co.us Natural Resource Conservation Service (USDA) Stephen Jaouen stephen.jaouen@co.usda.gov ATTACHMENT B Town of Avon Agency Referral March 15, 2018 – CO World Resorts Page 2 of 2 U.S. Army Corps of Engineers Matt Montgomery matthew.r.montgomery@usace.army.mil WRNF / Holy Cross Ranger District Aaron Mayville awmayville@fs.fed.us Comcast Michael Johnson Michael_Johnson@cable.comcast.com Holy Cross Energy-Eagle Valley Jeff Vroom Keith Hernandez jvroom@holycross.com khernandez@holycross.com Xcel Energy (Public Service Co.)-GAS Brittany Mace Remington Baker brittany.mace@xcelenergy.com remington.c.baker@xcelenergy.com Eagle County Paramedics/EC Health Services District Cameron Cusick ccusick@ecparemedics.com Eagle River Water & Sanitation Jason Cowles Tug Birk tbirk@erwsd.org jcowles@erwsd.org Eagle River Fire Protection District Gail Baker Mick Woodworth gbaker@eagleriverfire.org mwoodworth@eagleriverfire.org NWCCOG QQ Lane Wyatt qqlane@nwccog.org Eagle County Planning Dept Damian Peduto damian.peduto@eaglecounty.us Eagle Vail Community Jeff Layman jefflayman@eaglevail.org Eagle County School District RE50J Sandy Mutchler sandra.mutchler@eagleschools.net VICINITY MAP: ATTACHMENT B 1 From: Roussin ‐ CDOT, Daniel [mailto:daniel.roussin@state.co.us] Sent: Friday, March 16, 2018 10:19 AM To: Matt Pielsticker <mpielsticker@avon.org> Cc: Berdoulay ‐ CDOT, Karen <karen.berdoulay@state.co.us> Subject: Re: Agency Referral: Colorado World Resorts Rezoning File REZ18002 Matt ‐ Thank you for the opportunity to review the rezone of the property from Colorado World Resorts, LLC. I have no comments on the rezone of the property. However, if the property gets rezoned, the new usage would require a new access permit for the property. With the access permit, CDOT would require a traffic study to show the impacts of the development. If you have any specific questions on the access permit process, please let me know. thanks Dan Dan Roussin Permit Unit Manager Traffic and Safety P 970.683.6284 | F 970.683.6290 222 South 6th Street, Room 100, Grand Junction, CO 81501 daniel.roussin@state.co.us | www.codot.gov/ | www.cotrip.org The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location. The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location. ATTACHMENT B Community Development Kris Valdez, MURP, AICP 970-328-8752 970-328-7185 (f) Kris.Valdez@EagleCounty.us www.eaglecounty.us March 16, 2018 Town of Avon Attn: Debbie Hoppe, Town Clerk P.O. Box 4975 Avon, CO 81620 Via: dhoppe@avon.org Re: Referral Comments for Colorado World Resorts, LLC Rezoning Town of Avon File No. REZ18002 Hello Ms. Hoppe: Thank you for allowing Eagle County to comment on the Colorado World Resorts, LLC Rezoning Application. Please see general comments below: 1. The property is located in an area rated as “High” for wildfire. The Applicant is proposing a rezoning which would allow for high density development. Any opportunity to encourage the Developer and/or Owner to utilize fire resistant materials and create defensible space around any future structures would be appropriate, from this perspective. For potential assistance with this, please reference the Colorado State Forest Service for Best Management Practices: https://csfs.colostate.edu/wildfire-mitigation/protect-your-home-property-forest-from-wildfire/ 2. Due to the steep grades on the site, also please encourage the Developer and/or Owner to utilize “best management practices” relative to grading, drainage, and erosion control. This is a long term safety and welfare consideration and comment. 3. The property is located in or adjacent to areas which are critical to wildlife. Any opportunity to encourage the Developer and/or Applicant to utilize “best management practices” for designs which consider wildlife by incorporating further comments from 500 Broadway, P.O. Box 850, Eagle, Colorado 81631 ATTACHMENT B Colorado Parks and Wildlife Division into the development is a good source for accomplishing this within the project, from the County’s perspective. Thank you for the opportunity to produce these comments relative to the development you are currently considering. Please do not hesitate to contact me at (970) 328-8752 [and/or] kris.valdez@eaglecounty.us with any questions; and I’d be glad to discuss these comments with you further. Sincerely, Kris Valdez, MURP, AICP Planner III Cc. Damian Peduto, CPM, Eagle County Community Development Director ATTACHMENT B 1 From: Mace, Britt Sent: Friday, March 23, 2018 12:44 PM To: Matt Pielsticker <mpielsticker@avon.org> Subject: RE: Agency Referral: Colorado World Resorts Rezoning File REZ18002 Hi Matt, Xcel Energy Distribution is ok with the rezoning. Thanks! Britt Mace Xcel Energy | Responsible By Nature Designer, Design Dept. / Mountain Division 200 W. 6th St. PO.Box 1819 Silverthorne, CO 80498 -1819 P: 970.262.4032 F: 970.262.4038 E: brittany.mace@xcelenergy.com Office Hours: Monday - Friday 8:00am - 4:30pm. For immediate concerns please contact the front desk 970.262.4025 ________________________________________________ WWW.XCELENERGY.COM/INSTALLANDCONNECT Please consider the environment before printing this email. ATTACHMENT B 1 From: Kuster ‐ CDPHE, Kent [mailto:kent.kuster@state.co.us] Sent: Monday, March 26, 2018 7:13 AM To: Debbie Hoppe <dhoppe@avon.org> Subject: Colorado World Resorts Referral March 26, 2018 Debbie Hoppe, Town Clerk Town of Avon PO Box 975 Avon, CO 81620 Re: Colorado World Resorts, LLC Rezoning Referral Dear Ms. Hoppe, The Colorado Department of Public Health and Environment has no comments on the Colorado World Resorts, LLC Rezoning. However, we recommend that the contractor(s) comply with all state and federal environmental rules and regulations. This may require obtaining a permit for regulated activities before emitting or discharging a pollutant into the air or water, dispose of hazardous waste or engaging in certain regulated activities. Please contact Kent Kuster at 303-692-3662 with any questions. Sincerely, Kent Kuster Environmental Specialist Colorado Department of Public Health and Environment ‐‐ Kent Kuster Environmental Protection Specialist Colorado Department of Public Health and Environment 4300 Cherry Creek Drive South Denver, CO 80246-1530 303-692-3662 | kent.kuster@state.co.us ATTACHMENT B EA-18-0007 Colorado World Resorts Rezoning_02.docx 3:51 PM, 04/10/2018 April 10, 2018 Karen Berry State Geologist Matt Pielsticker Planning Director Town of Avon 1 Lake Street P.O. Box 975 Avon, CO 81620 Location: NW SE Sec. 12, T5S, R82W of the 6th PM 39.63, -106.52 Subject: Colorado World Resorts Rezoning, Town of Avon File: REZ180002 - Revised Avon, CO; CGS Unique No. EA-18-0007 Dear Mr. Pielsticker: This letter provides revised comments based on review of the following additional documents provided to CGS by Greg Macik of TAB Associates, Inc. in response to the review letter that CGS sent to you earlier today:  Preliminary Geotechnical Study Proposed Commercial Development Folsom Property Highway 6 and 24, East of Avon Road Avon, Colorado (HP Geotech, December 13, 2006),  Engineering Geological and Geotechnical Review and Second Opinion, Madison Partners PUD, Avon, Colorado (Michael W. West & Associates, Inc., December 10, 2007), and  Investigation summary report - Re: Geological Engineering Services Folson Project, Hwy 6, Avon, Colorado (WJE, September 12, 2017). CGS has the following additional comments regarding the concerns expressed in our previous response:  Debris flow/mudflow: The subsurface investigation proposed by Michael W. West & Associates and performed by WJE is appropriate for characterizing alluvial/debris fan hazards. Based on the information provided, CGS agrees with WJE that the fan is likely dominated by fluvial processes and that any debris flow activity would likely be relatively minor; CGS further agrees with WJE that the potential debris flow hazard on the fan does not warrant debris-flow specific mitigation. CGS agrees with WJE’s recommendations regarding oversizing conveyance channels, culverts, and related structures to account for sediment loading and additionally recommends developing an inspection and maintenance plan to ensure that these conveyances continue to operate as designed following a large storm event.  Landslides and/or potentially unstable slopes: CGS remains concerned about stability of potentially unstable slopes, especially during and immediately following construction. Stabilizing the large cut required for the proposed hotel and multi-level underground parking structure described in the HP Geotech report will not be trivial, especially during construction; however, CGS does not consider potentially unstable slopes a hazard that would preclude the currently proposed development provided that HP Geotech’s comments regarding additional geotechnical and slope stability analyses, construction planning and retaining wall design are carefully followed. CGS requests the opportunity COLORADO GEOLOGICAL SURVEY 1801 19th Street Golden, Colorado 80401 ATTACHMENT B Matt Pielsticker April 10, 2018 Page 2 of 2 EA-18-0007 Colorado World Resorts Rezoning_02.docx 3:51 PM, 04/10/2018 to review and comment on any additional slope stability investigations and/or significant retaining wall designs.  Hydrocompaction/collapsible soils: Based on the soil boring data, swell-consolidation testing results, and proposed deep foundations discussed in the HP Geotech report, CGS is no longer concerned that hydrocompaction and/or collapse of the alluvial fan soils pose a significant hazard to the proposed development.  Evaporite-related sinkhole formation and/or soil collapse: The Eagle Valley Evaporite is present in the general project area, and was encountered beneath the eastern portion of the Site in HP Geotech boring 7. Sinkholes have formed in terrace deposits and upland soils that overlie the Eagle Valley Evaporite in and around the town of Avon. Based on the available information, CGS does not consider evaportite-related sinkhole formation a hazard that would preclude the currently proposed development. However, the applicant’s engineering contractors should be aware of the potential for sinkhole development in the area, and/or potential variability in foundation conditions associated with buried former sinkholes.  Rockfall: The relatively steep slopes near the top of the steeply-sloping area to the south of the site could potentially act as rockfall source areas and the relatively dense tree cover on the slope may currently intercept rocks that relese from this area. While CGS does not consider rockfall to be a significant hazard to the site under current conditions, CGS would consider it prudent to evaluate potential rockfall impacts when designing walls and selecting location of rooms with windows on the upslope side of any structures that are placed at or near the base of the steeply-sloping area. CGS requests the opportunity to review and comment on any such analysis.  Snow avalanche: The steep, seasonally snowy slopes above the site suggest potential for relatively small localized snow avanaches; however, the vegetation on the slope indicates that this is a relatively limited hazard. CGS does not consider snow avalanches to be a significant enough hazard to the site to warrant additional study at this point. Thank you for the opportunity to review and comment on this project. If you have questions, please contact me at 303-384-2632 or kemccoy@mines.edu. Sincerely, Kevin McCoy Engineering Geologist ATTACHMENT B ATTACHMENT B USFS Winter Access 1 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Matt Pielsticker, AICP, Planning Director Meeting Date: May 8, 2018 Topic: REVIEW AND RECOMMENDATION REGARDING MOTORIZED WINTER ACCESS VIA USFS 779, 774 AND/OR 717.1B ACTION BEFORE COUNCIL Action, by motion and vote, on preferred motorized winter access route via USFS 779, 774, and/or 717.1B. MOTION I move to provide a comment letter to the USFS on motorized winter access stating the following (select option from list below). OPTIONS OPTION 1: USFS 717,1B ‐ PREFERRED MOTORIZED WINTER ACCESS  The June Creek Trail Connector (USFS 717.1B) parking lot be included in Berlaimont’s Final EIS as the preferred motorized winter access instead of a new parking lots being developed on USFS 774 or USFS 779.  The USFS 717.1B parking lot should be expanded at the expense of Berlaimont, with Berlaimont also providing annual maintenance.  Commencing a NEPA review for USFS 779, under the MOU, dated July 21, 2014, be delayed until a decision has been made on the Berlaimont proposal. OPTION 2: USFS 717.1B & 779 PREFERRED MOTORIZED WINTER ACCESSES  The June Creek Trail Connector (USFS 717.1B) parking lot be included in Berlaimont’s Final EIS as the preferred motorized winter access instead of a new parking lots being developed on USFS 774 or USFS 779.  The USFS 717.1B parking lot should be expanded at the expense of Berlaimont, with Berlaimont also providing annual maintenance  Commence in 2019 a NEPA review for USFS 779, under the MOU, dated July 21, 2014, for motorized winter access at USFS 779. If the Town of Avon is required to pay for the NEPA review, under current USFS policy, provide an estimated cost prior to commencing the study. OPTION 3: CONTINUE TO REQUEST THE USFS CONDUCT THE NEPA REVIEW AS AGREED TO IN THE MOU, DATED JULY 21, 2014 USFS Winter Access 2 SUMMARY Aaron Mayville, District Ranger for the Eagle‐Holy Cross District of the White River National Forest, will be attending a follow‐up to the April 10, 2018 work session to discuss winter motorized access options to USFS areas north of Town. Currently, motorized access from the valley, to areas of Red and White Mountain, is limited to Muddy Pass, Berry Creek (USFS 774), or Red Sandstone Road. Winter access from the Wildridge Subdivision, including Metcalf Creek Road (USFS 779) at the top Wildridge, was closed in 2014 to implement the 2011 White River National Forest Travel Management Plan. The Town of Avon recently commented on the Berlaimont Estates Access Project Draft Environmental Impact Statement (DEIS) since that proposal includes the construction of a permanent year‐round parking facility at Berry Creek (USFS 774). The Town’s comments were provided with the understanding that USFS will only permit one winter access point for motorized vehicles in this region due primarily to winter wildlife stress, and that a delay in USFS 774 parking area would allow for final consideration of USFS 779, as agreed to in the MOU signed in 2014 between the USFS and Town in 2014. Also under consideration is the potential for road improvements (i.e. minor re‐routing, drainage) and a new parking area accessed from June Creek Trail Road on the west side of Wildridge, via USFS 717.1B. This proposal would be rather than and not in addition to planned facility at Berry Creek USFS 774. Year‐round motorized access at 717.1B could result in several less miles of forest road leading to June Creek Road, and a better overall winter recreation experience. STRATEGIC PLAN PRIORITY: The Town of Avon 2017‐2019 Strategic Plan lists the continued work with USFS on the Town’s request for USFS 779 to be open to winter motorized use as a Tier 1 priority. BUDGET: The current Capital Projects 5‐Year Plan includes USFS 779 road realignment design in 2020 ($25,000) and construction in 2021 ($235,000). No monies have been budgeted the NEPA review, under the terms of the MOU. ATTACHMENT: SUPPORTING DOCUMENTS  Map showing Berry Creek, June Creek, Metcalf Creek, and June Creek Trail Connector  Topics of Interest Letter – Dated March 26, 2018  Berlaimont DEIS Comments– Dated February 27, 2018  Correspondence regarding USFS 779  MOU with USFS for 779 – Dated July 23, 2014  Negotiated Resolution for USFS 779 – Dated July 7, 2011 Vicinity Map of USFS 774, 717.1B & 779 Post Office Box 975 One Lake Street Avon, CO 81620 970-748-4000 March 26, 2018 Mr. Aaron Mayville, District Ranger White River national Forest 24747 US Hwy 24 - PO Box 190 Minturn, CO 81645 RE: APRIL 10TH TOWN COUNCIL MEETING: TOPICS OF INTEREST Dear Aaron, The Avon Town Council looks forward to meeting with you on April 10th. In preparation for the session, the Town would like to discuss the following topics: 1. Status of Berlaimont EIS and proposed new parking lot on FSR 774 and Town of Avon request to delay the parking lot. (DEIS Comment Letter dated February 27, 2018) 2. Status of USFS action on the Memorandum of Understanding, dated July 21, 2014. Avon’s correspondence regarding the MOU is attached. In our meeting on February 23, 2018, it was Planning Director Matt Pielsticker’s and my understanding that the USFS was placing certain new conditions on the MOU previously not disclosed or provided for in the MOU. These conditions include: 2.1 The White River National Forest now requires the proponent of an action to pay for the NEPA process. The NEPA review category has not been determined. The proponent would be the Town of Avon. 2.2 The Town is expected to design the realignment of Metcalf Creek Road prior to commencement of the NEPA process. [Note: The Town has budgeted road realignment design in 2020 ($25,000) and construction in 2021 ($235,000), subject to completion of the NEPA process.] It was an additional understanding from our meeting that it should be possible for the MOU review to be included in the 2019 USFS work program and budget, if these matters are finalized in the next couple of months. Avon, understandably, would like to discuss and resolve these conditions at the April 10th session. Thank you. Let us know if there is anything you would like to add to the list or if there is anything you would like to provide to the Council before the meeting. Please give a call if helpful. Sincerely, Virginia C. Egger Town Manager cc: Planning Director Matt Pielsticker ID ID ID IA IA ID FSR 774FSR 780 Berlaimont Estates'Private Property FSR 7 7 8 FSR 780 FSR 783FSR 774NFS Private NFS Private [ Existing Roads Multi-Use Trail Berlaimont Estates' Private Property NFS Boundary Proposed All Alternatives Alternative 2 Alternative 3 Alternative 4 Recreation Mitigation Trail Platted Berlaimont Property Road IA North Parking Lot IA South Parking Lot ID Residential Access Gate Alternative 2 ID Residential Access Gate Alternative 3 ID Residential Access Gate Alternative 4 ID Winter Access Gate Date: January 2018Prepared by:0 0.25 0.5Miles E d w a r d sE d w a r d s Berlaimont Estates Access Route EIS Figure 2: Action Alternatives (2–4) §¨¦70 New parking lot From: Matt Pielsticker Sent: Monday, October 16, 2017 9:51 AM To: Mayville, Aaron W -FS <awmayville@fs.fed.us> Cc: Virginia Egger <vegger@avon.org> Subject: RE: USFS 779 Aaron From our last conversation it became clear that 779 would not be included in the Berlaimont project study. There are no updates on the USFS Berlaimont webpage; understanding that it is moving forward independently, could you give us any sense on where 779 is placed in your queue? Did you meet with your supervisor to go over where 779 stands in your master work list? Thanks Matt Matt Pielsticker, AICP Planning Director Town of Avon 970.748.4413 www.avon.org From: Matt Pielsticker Sent: Tuesday, May 09, 2017 10:32 AM To: Mayville, Aaron W -FS Cc: Avon Council Web; Virginia Egger; 'lancetrujillo24@gmail.com' Subject: USFS 779 Aaron, Please find the attached letter and correspondence requesting action and updates on USFS 779. Thank you, Matt Matt Pielsticker, AICP Planning Director Town of Avon 970.748.4413 www.avon.org Post Office Box 975 One Lake Street Avon, CO 81620 970-748-4000 970-949-9139 Fax 970-845-7708 TTY DISTRIBUTION VIA EMAIL May 9, 2017 Aaron Mayville, District Ranger United States Forest Service White River National Forest, Eagle-Holy Cross Ranger District 24747 US Hwy 24, PO Box 190 Minturn, CO 81645 awmayville@fs.fed.us Dear Aaron, Thank you for speaking recently on the telephone and providing an update regarding the Berlaimont project. It is my understanding that Berlaimont is in the heart of the National Environmental Policy (NEPA) process, and alternative development (access) options are currently being created for further evaluation this summer. Additionally, a draft analysis is expected this fall to assess the alternative access options. Independent of the Berlaimont study, the Town respectfully requests that review by the USFS of year- round vehicle access and road improvements on Metcalf Creek Road (USFR 779) be commenced. This letter follows a November 7, 2016 comment letter provided by the Town and attached hereto. The Town requests year-round access for all vehicles, bicycles, horse and foot traffic be provided for USFR 779, except during any appropriate US Forest Service closure. The Town also remains committed to retaining the June Creek access in the winter as the reinstatement of USFR 779. This request includes a review of year-round vehicle access and road improvements on USFR 779 and emanates from our Memorandum of Understanding, dated July 1, 2014, which is also attached The Town appreciates your timely consideration of this proposal and honoring of the Memorandum of Understanding. It is the Town’s desire to move forward with analysis and budgeting of any potential upgrades to USFR 779 as contemplated in the Memorandum of Understanding. Please include me as the Town’s primary contact for the Berlaimont project and the USFR 779 study. With Appreciation, Matt Pielsticker, AICP Town of Avon Planning Director Attachments: November 7, 2016 Comment Letter July 1, 2014 Memorandum of Understanding CC: Avon Town Council Town Manager Virginia Egger Lance Trujillo, Holy Cross Powderhounds Post Office Box 975 One Lake Street Avon, CO 81620 970-748-4000 970-949-9139 Fax 970-845-7708 TTY November 7, 2016 Scott Fitzwilliams, Forest Supervisor c/o Matt Klein, Realty Specialist White River National Forest 24747 US Hwy 24, PO Box 190 Minturn, CO 81645 RE: COMMENT PERIOD FOR BERLAIMONT ESTATES ROAD ENHANCEMENT PROJECT Dear Mr. Fitzwilliams and Mr. Klein, On behalf of the Town of Avon, I appreciate the opportunity to comment on the Berlaimont Estates Road Enhancement Projects, and specifically in regards to Berlaimont’s proposal to improve a segment of the existing NFSR 774, known locally as the Berry Creek Road. On August 6th, the Town Council sent the attached letter to the United States Forest Service, requesting the Forest Service begin its review of “year-round vehicle access and road improvements on Metcalf Creek Road” (USFR 779), which emanated from the Memorandum of Understanding, dated July 1, 2014, enclosed with the letter. The Town of Avon is aware that today the only permitted year-round snowmobile access available, in a reasonable distance, is via NFSR 774. Respectfully, the Town asks that during the Berlaimont Road Enhancement review and preparation of alternatives, comprehensive consideration be given by the USFS to Town’s letter of August 6th, to the needs of snowmobile access and trail connections. Finally, the Avon public has a strong interest in trail development and retention. I believe extending the review period would allow needed time for Town Council meeting notice and outreach to our residents regarding the Berlaimont project, and, as such, I request an extension be considered by the USFS. The Town is prepared to work expeditiously with all parties to address this important matter. Sincerely, Mayor Jennie Fancher Town of Avon Attachment: August 7th Letter cc: Avon Town Council Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com H EIL L AW TO: Honorable Mayor Fancher and Town Council members FROM: Eric J. Heil, Town Attorney RE: Appeal of Denial of Trinity-Sunroad LLC RETT Exemption Application DATE: May 3, 2018 SUMMARY: Trinity-Sunroad, LLC (“Applicant”) submitted a Real Estate Transfer Tax (“RETT”) exemption application to the Town of Avon which was denied by Town staff. The Applicant has appealed (“Appeal”) the Town staff denial decision and seeks reimbursement of $83,039.80. Proposed Motions are provided after the analysis. A draft Findings of Fact and Record of Decision is attached which contains a recitation of the facts. ANALYSIS: 15 Sun Road, Avon, Colorado (“Property”) was transferred to the Applicant on January 17, 2018. Applicant declared the Total Sales Prices as $8,190,340.00 and paid the real estate transfer tax on this amount. The Real Property Transfer Declaration included an Addendum whereby Buyer and Seller agreed that the “Real Property Value” was $4,059,850.00 and the “Existing Lease Value” was $4,13,490.00. Applicant argues that the Applicant should only pay the “Real Property Value” portion of the consideration paid for the transfer of the Property because real estate transfer taxes are already paid on the long term lease (defined as longer than 25 years). The Warranty Deed dated January 17th, 2018 (“Deed”) transferring the Property included all interests in the Property, including assignment of the existing lease. Avon Municipal Code (“AMC”) §3.12.020 defines Consideration in part to mean and include the actual cash paid and/or value of the property delivered, or contracted to be paid or delivered, in return for the transfer of ownership or title to, or any other possessory interest in, real property, and shall include the amount of any lien, mortgage, contract indebtedness or other encumbrance, either given to secure the purchase price or any part thereof, or remaining unpaid on the property at the time of sale. [emphasis added]. AMC §3.12.030 – Imposition of Tax states, “Except as provided in Section 3.12.060, there is imposed a tax on all transfers of interests or possessory rights in and to real estate located in the Town by deed, lease, assignment of lease, agreement for sale of stock or contract. The tax imposed is and shall constitute a tax payable with respect to the transfer, and the tax is due and payable at the time of the transfer.” The Appeal includes the actual lease assignment as Exhibit 2. The Applicant has stated that the lease continues until October 31, 2087, or 69 more years. The Applicant has provided a redacted lease which indicates that it is a 75 year term commencing in 2012. AMC §3.12.060(10) provides an exemption for the transfer of a possessory right in real property (i.e. leasehold interest) where the posessssory right is granted for a period of twenty-five (25) years or less. The Applicant’s argument fails because (1) the definition of Consideration in the AMC includes the entire $8,190,340.00 as the amount paid for the property conveyed including any other posessory interest, (2) the imposition of tax applies to the assignment of a lease, and (3) the remaining leasee term is more than 25 years (apprimately 69 more years) therefore the exemption for leases with terms of 25 years or less is not applicable. Applicant argues that the payment of RETT on the existing lease, and payment of RETT on the M EMORANDUM & PLANNING, LLC Avon Town Council RE: Trinity Sunroad, LLC Appeal of RETT Exemption Application Denial May 3, 2018 Page 2 of 2 transfer and assignment of the lease to 15 Sun Road LLC is “double taxation” and cites property tax law statutes and cases for this argument. Statutory property tax definitions and laws are not applicable to real estate transfer taxes and do not override the provision of Chapter 3.12 Real Property Transfer Tax in the Avon Municipal Code. The RETT is due anytime there is a transfer on any interest or possessory right to real estate for a lease period greater than 25 years. Therefore, RETT was due on the long-term Walgreens lease prior to this assignment of the Walgreens lease, and the RETT is also due on the assignment of the long-term Walgreens lease in the same manner that RETT is due in full everytime a fee simple interest in property is transferred to the next Buyer. PROCEDURES: The Appeal was filed within 30 days after the date of transmittal of the letter decision to deny the application for exemption, therefore the Appeal is timely. Consideration of the Appeal is a quasi-judicial matter and Council must conduct a hearing prior to making a decision. The hearing is primarily a due process right of the Applicant; however, per adopted Council rules, Council must also allow the general public to speak on any action item. The Code states that Council must render a decision on the Appeal within 45 days; however, the Applicant requested a continuance to the May 8, 2018 Council meeting and waived the 45 day timeframe to render a decision. OPTIONS: Council may take action to deny the Appeal, approve the Appeal, or could choose to take no action and allow the Appeal to be approved automatically by operation of Avon Municipal Code Section 3.12.070(d). PROPOSED MOTION: “I move to deny the Trinity-Sunroad LLC appeal, dated March 15, 2018, concerning the imposition of the Real Estate Transfer Tax to the Total Sales Price stated in the Real Property Transfer Declaration. ALTERNATE PROPOSED MOTION: “I move to approve the Trinity-Sunroad LLC appeal, dated March 15, 2018, concerning the imposition of the Real Estate Transfer Tax to the Total Sales Price stated in the Real Property Transfer Declaration.” Thank you, Eric ATTACHMENT A: Record of Decision with Attachments ATTACHMENT B: Chapter 3.12 Avon Municipal Code ATTACHMENT C: Redacted Walgreens Lease RECORD OF DECISION RE: TRINITY-SUNROAD, LLC REAL ESTATE TRANSFER TAX EXEMPTION APPEAL BEFORE THE AVON TOWN COUNCIL This Record of Decision is adopted by the Avon Town Council concerning the Real Estate Transfer Tax Exemption Appeal filed by Trinity-Sunroad, LLC. FINDINGS OF FACT: Trinity-Sunroad, LLC (“Applicant”) filed an Application for Exemption from Real Property Transfer Tax on January 19, 2018 (“Application”). The Application seeks exemption from the payment of the Real Property Transfer Tax imposed by Chapter 3.12 – Real Property Transfer Tax of the Avon Municipal Code on the transfer of property located at 15 Sun Road, Avon, Colorado (“Property”) on January 17, 2018. The Application did not indicate an applicable basis of the application for exemption on the Application for Exemption form provided by the Town of Avon. The Real Propery Transfer Declaration stated the “Total Sales Price” as $8,190,340.00 and included an addendum which stated that Buyer and Seller agreed that the “Real Property Value” was $4,059,850.00 and that the “Existing Lease Value” was $4,130,490.00. The Town of Avon Finance Department denied the Application on February 14, 2018. The Applicant filed an appeal on March 15, 2018, in accordance with Avon Municipal Code Section 3.12.070(d) (“Appeal”). The Appeal includes an Assignment and Assumption of Lease as Exhibit 2 wherey the Applicant assigned the existing lease for the Property to the Buyer, 15 Sun Road, LLC, simultaneously with the conveyance of the Property. Applicant indicated that the assigned lease continues to October 31, 2087. DECISION: The Appeal was filed within 30 days of the date of the Denial Letter and is therefore timely under Avon Municipal Code Section 3.12.070(d). AMC §3.12.030 – Imposition of Tax states, “Except as provided in Section 3.12.060, there is imposed a tax on all transfers of interests or possessory rights in and to real estate located in the Town by deed, lease, assignment of lease, agreement for sale of stock or contract. The tax imposed is and shall constitute a tax payable with respect to the transfer, and the tax is due and payable at the time of the transfer.” The transer of Property includes the assignment of the lease for the Property, which lease is greater than 25 years. The Applicant has not indicated that any exemption in Avon Municipal Code Section 3.12.060 applies. No exemption in Avon Municipal Code Section 3.12.060 applies to the Application. Avon Municipal Code (“AMC”) §3.12.020 defines Consideration in part to mean and include the actual cash paid and/or value of the property delivered, or contracted to be paid or delivered, in return for the transfer of ownership or title to, or any other possessory interest in, real property, and shall include the amount of any lien, mortgage, contract indebtedness or other encumbrance, either given to secure the purchase price or any part thereof, or remaining unpaid on the property at the time of sale. [emphasis added]. The Application provides both statements and evidence that the consideration paid for the transfer for $8,190,340.00 which ATTACHMENT A: DRAFT RECORD OF DECISION included transfer of title and assignment of the lease which lease is greater than 25 years. WHEREFORE, the Appeal is hereby DENIED. This Decision is limited to the Appeal. ADOPTED MAY 8, 2018 By:________________________________ Attest:____________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk ATTACHMENTS: 1. Application for Exemption from Real Property Transfer Tax, dated January 19, 2018 2. Denial letter from Avon Finance Department, dated February 14, 2018 3. Appeal dated March 15, 2018 ATTACHMENT A: DRAFT RECORD OF DECISION ATTACHMENT 1: RETT Exemption Application ADDENDUM ATTACHED TO AND MADE A PART OF THE TRANSFER TAX EXEMPTION APPLICATION For the Property at: 15 Sun Road, Avon, Colorado On January 17, 2018, Trinity-Sunroad, LLC conveyed property located at 15 Sun Road, Avon, Colorado to 15 Sun Road, LLC. The total sale price for the transaction was $8,190,340.00, which included two elements: (1) $4,059,850 as value for the real property, and (2) $4,130,490 for the existing lease value. These numbers are reflected on the Real Property Transfer Declaration (Form TD-1000) executed by the Grantee and submitted to the Eagle County Clerk and Recorder contemporaneous with the recording of the deed of conveyance, a copy of which is enclosed. In order to avoid any possibility of imposition of a lien by the Town of Avon, at the closing of the transaction, the Town of Avon Real Property Transfer Tax was remitted based on the total sale price. The payment to the Town was in the amount of $164,236.80. However, as noted above, the total sale price includes consideration for other than an interest in real property as defined by the Town of Avon Real Property Transfer Tax Ordinance, memorialized in Chapter 3.12 of the Avon Municipal Code. Trinity-Sunroad LLC hereby claims payment under protest, and exemption from payment of the real estate transfer tax for the non-real property portion of the sale price—that is, the difference between the total sale price and the sale price paid for the real property interest. Trinity-Sunroad LLC calculates the proper payment due under, and overpayment of, the Town of Avon Real Property Transfer Tax Ordinance as follows: (A) Actual payment to the Town: $164,236.80 (B) Transfer tax on consideration for real property interest: $81,197.00 (C) Overpayment: $83,039.80 Trinity-Sunroad, LLC hereby requests prompt refund from the Town of the same. For further information, please contact Grantor’s counsel: Sarah J. Baker Sarah J. Baker PC 1099 Capitol Street #204 Post Office Box 4551 Eagle, CO 81631 Telephone: (970) 331-0799 E-Mail: sbaker@sbakerpc.com ATTACHMENT 1: RETT Exemption Application ATTACHMENT 1: RETT Exemption Application ATTACHMENT 1: RETT Exemption Application ATTACHMENT 1: RETT Exemption Application ATTACHMENT 1: RETT Exemption Application ATTACHMENT 1: RETT Exemption Application ATTACHMENT 1: RETT Exemption Application ATTACHMENT 1: RETT Exemption Application ATTACHMENT 2: Denial Letter ATTACHMENT 2: Denial Letter ATTACHMENT 2: Denial Letter ATTACHMENT 2: Denial Letter Sarah J. Baker P.C. P.O. Box 4551 ∙ 1099 Capitol Street, #204 ∙ Eagle, CO 81631 t: (970) 331-0799 f: (866) 597-4823 e: sbaker@sbakerpc.com March 15, 2018 By email to vegger@avon.org Town of Avon, Colorado Post Office Box 975 One Lake Street Avon, Colorado 81620 Attn: Town Manager APPEAL OF DENIAL OF APPLICATION FOR EXEMPTION FROM REAL PROEPRTY TRANSFER TAX Dear Manager: I submit this appeal on behalf of Trinity-Sunroad, LLC (“Applicant”), the former owner of the real property at 15 Sun Road, Avon, Colorado. On January 17, 2018, Applicant concluded a transaction (“Transaction”) by which it (i) conveyed the property located at 15 Sun Road, Avon, Colorado (“Property”) and (ii) assigned all of its right, title and interest in and to that certain Lease dated July 28, 2011 (“Lease”) between Applicant and Walgreen Co., an Illinois corporation to 15 Sun Road, LLC. The Property was conveyed by Warranty Deed recorded at Reception No. 201800971 (the “Warranty Deed”),1 and the Lease was assigned pursuant to a separate Assignment and Assumption of Lease dated January 17, 2018 (“Lease Assignment”).2 THE TRANSACTION AND EXEMPTION APPLICATION On January 19, 2018, Applicant filed a Transfer Tax Exemption Application (“Exemption Application”)3 with the Town of Avon (“Avon”) asserting payment under protest, and exemption from payment, of the Town of Avon Real Property Transfer Tax (“RETT”) for the value of the portion of the Transaction agreed upon by the parties as the existing lease value. As set forth in the Exemption Application, the total value of the Transaction was $8,190,340.00, which the parties agreed included two elements: (1) $4,059,850 as value for the real property conveyed by the Warranty Deed, and (2) $4,130,490 for the existing lease value conveyed by the Lease Assignment. 1 See Warranty Deed, Exhibit 1. 2 See Lease Assignment, Exhibit 2. 3 See Exemption Application, Exhibit 3. ATTACHMENT 3: Appeal Town of Avon, Colorado March 15, 2018 Page 2 These numbers are reflected on the Real Property Transfer Declaration (Form TD-1000) executed by the buyer and submitted to the Eagle County Clerk and Recorder contemporaneous with the recording of the Warranty Deed.4 In its Exemption Application, Applicant explained that in order to avoid the possibility of imposition of a lien by Avon, at the closing of the transaction, it remitted the RETT to Avon based on the value of the entire Transaction. That payment to the Town was in the amount of $164,236.80. However, as noted above, the total value of the Transaction included two elements, one of which is separately taxed under, and is consideration for other than an interest in real property as defined by, the Town of Avon Real Property Transfer Tax Ordinance, memorialized in Chapter 3.12 of the Avon Municipal Code (“RETT Ordinance”). The Exemption Application claimed payment under protest, and exemption from payment of the RETT for, the existing lease value. Applicant claims the proper payment due, and overpayment of tax, under the RETT Ordinance as follows: (A) Payment under partial protest to the Town: $164,236.80 (B) Transfer tax on consideration for real property interest: $81,197.00 (C) Overpayment: $83,039.80 APPEAL OF AVON’S DENIAL OF THE EXEMPTION APPLICATION On February 14, 2018, by email from Martha Anderson, Avon advised Applicant of its denial of Applicant’s Exemption Application (the “Denial”). Pursuant to Avon Municipal Code “AMC”) § 3.12.070(b), Applicant hereby appeals Avon’s Denial. TIMELINESS OF APPEAL Pursuant to AMC § 3.12.070(b), any person whose application for exemption from the RETT is denied may appeal such decision to the Town Council. The appeal shall be filed in writing with the Town Clerk within thirty (30) days after the date of transmittal of the decision of the Town Manager or designee. This appeal is timely, as it is filed on or before March 16, 2018. BASIS FOR APPEAL The Denial should be overturned for two primary reasons. First, because the Lease is a long-term and/or non-market lease, Avon’s Denial errs in combining the value of the leased fee and leasehold estate, resulting in double taxation of the value of the leasehold estate. Second, the transfer of the Applicant/landlord’s contractual rights under the Lease is not a transfer of an interest or possessory right in and to real estate, and is therefore outside what Avon can legally impose its RETT on under AMC § 3.12.030. This appeal addresses each, in turn. 4 See Real Property Transfer Declaration, Exhibit 4. ATTACHMENT 3: Appeal Town of Avon, Colorado March 15, 2018 Page 3 1. The Lease must be treated as a separate component of value under the RETT Ordinance. Avon’s Denial takes the position that lease revenues are generally a “common component to commercial property appraisal and valuation” and that therefore, the Lease value is a component of consideration paid for the Transaction. On this basis, Avon maintains that the consideration paid for the real estate includes the value the parties agreed is for the existing Lease value. While Avon’s position may be an appropriate one in a short-term, market lease circumstance, it is not the case in a long-term, non-market lease situation, as the Real Property Valuation Manual5 (“Manual”) published by the State of Colorado Department of Local Affairs – Division of Property Taxation (“Division”) makes clear. A long-term, non-market lease occurs when: 1. A property is occupied by a single tenant; 2. Rental income per unit of comparison (usually $/sf) is outside the range that is typical of similar properties; 3. The lease is of long enough duration to have a significant impact on value. See Manual, Vol. 3, §7.13. The Manual goes on to provide that: Consideration of the following criteria will be helpful in determining the applicability of long-term, non-market lease valuation procedures: x Long-term lease refers to a lease with a remaining term of ten years or more. Lease options are not relevant in this determination, unless there is strong evidence that the option(s) will be exercised. (Examples of this type of evidence may include: a letter of intent to renew, a lease renewal agreement, or a solid history of exercising renewal options.) x Lease terms are not renegotiable upon sale of the property. x Lease terms are not renegotiable upon exercise of a renewal option. x The tenant’s interest (leasehold estate) must be transferable for there to be any leasehold value. Id. As applied to the facts of this Transaction, (1) the property is occupied by a single tenant, (2) the Lease is long-term, in that it continues until 2087—69 more years;6 (3) the terms of the Lease 5 https://drive.google.com/file/d/1imZZAAD9-KvrV3wqoXG2ghggqRusNIb8/view 6 See Lease, Article 1. It is our understanding that Avon is in possession of a copy of the Lease. However, if this is not the case, please advise and a copy will be provided subject to a non-disclosure agreement, given the commercial sensitivity of the business terms of the Lease, the vast majority of of which are not relevant to the issues presented in this appeal. ATTACHMENT 3: Appeal Town of Avon, Colorado March 15, 2018 Page 4 are not renegotiable upon sale of the property; (4) the Lease does not include renewal options; and (5) the leasehold estate is transferable.7 As a long-term and/or non-market lease, valuation of the leased fee interest8 and the leasehold interest9 should be—and are—treated distinctly under both the guidance of the Manual, as well as under Avon’s RETT Ordinance: As a general rule, § 39-1-106, C.R.S., requires that the fee simple interest in property be valued for property tax purposes. The valuation process should reflect a market value, using market assumptions, including market rent, market expenses, and market occupancy. There are a few specific exceptions to this requirement. The valuation of property subject to a long-term, non-market lease is one of those exceptions. Manual, Vol. 3, §7.13 (emphasis added). Avon’s RETT Ordinance as drafted—but not as it is being applied under the Denial— honors the Division’s recognition that “[t]he sale of a property subject to a long-term, non- market lease cannot reflect the value of both the leased fee and leasehold estates; therefore, each component of value should be considered separately by this method.” Id. Avon acknowledged this in its RETT Ordinance by separately imposing a transfer tax on leases where the initial possessory term is for twenty-five years or more. See AMC § 3.12.060(10). In other words, the proper way to impose the RETT on the value of a long-term lease is to separately consider the leased fee interest and the leasehold interest. By imposing its RETT on both the value of the transfer of the leased fee estate—as well as on the leasehold estate’s capitalization or annual rental10—Avon properly captures taxation of the two distinct interests without double-counting. However, as Avon seeks to apply its RETT under the interpretation of the Denial, Avon is actually and impermissibly applying its RETT twice to the value leasehold estate: first in its collection of a tax on the lease capitalization or annual rental, and second in its inclusion of the existing lease value as a component of the value of the real estate. This result is precisely that which is prohibited under the unit assessment rule, which prohibits multiple assessments on multiple taxpayers holding disparate interests in a single piece of property. See City and County 7 “At any time and from time to time, without Landlord's consent, Tenant may assign this Lease or Tenant may sublet the Leased Premises or Building to any person, firm, corporation or other entity, other than a corporation or other entity described in Article 13(b) above, for any lawful purpose.” See Lease, Article 13(c). 8 “A leased fee interest is the lessor’s, or landlord’s interest. It is an ownership interest held by a landlord with the rights of use and occupancy conveyed by a lease to others.” Manual, Vol. 3, §7.13. 9 “A leasehold estate is the lessee’s, or tenant’s estate. It is the interest held by the lessee (tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.” Id. 10 See AMC § 3.12.020 Definitions – Consideration (“In the event that the transaction or transfer is by lease agreement not specifically exempted in Section 3.12.060 of this Chapter, the consideration shall be computed based upon the capitalization or the current annual rental for ten (10) years, plus any additional consideration, paid or to be paid. When it is not possible to determine the annual rental, the tax shall be based upon the appraised value of the property covered by the lease, and this decision, that the annual rental cannot be determined, shall be solely at the discretion of the Town Manager…”) ATTACHMENT 3: Appeal Town of Avon, Colorado March 15, 2018 Page 5 of Denver v. Bd. of Assessment Appeals of State of Colo., 848 P.2d 355, 358 (Colo. 1993). As the Colorado Supreme Court recognized: The responsibility of apportioning the tax on this assessment among the various interest holders rests on the private parties who own these interests… In the ordinary case the whole of the property is taxed, and which party bears the taxation burden is not a matter of public concern; rather it is to be resolved as a matter of contract between the landlord and tenant. Id. at 359-60, citing Trimble v. Seattle, 231 U.S. 683, 689, 34 S.Ct. 218, 219, 58 L.Ed. 435 (1914). Avon, under its RETT Ordinance, has the right to tax both the leased fee interest and the leasehold interest. But it cannot—as its Denial would have the effect of doing—impose the tax on the value of the leasehold interest twice. The comparison in approach between Avon and Applicant is summarized as follows: AVON’S APPROACH TO VALUATION Leased Fee Interest $4,059,850 real estate value $4,130,490 existing lease value $8,190,340 Leasehold Interest $4,483,66411 $4,483,664 TOTAL VALUE OF ESTATES $12,674,004 APPLICANT’S APPROACH TO VALUATION Leased Fee Interest $4,059,850 real estate value $4,059,850 Leasehold Interest $4,483,664 $4,483,664 TOTAL VALUE OF ESTATES $8,543,514 As demonstrated, the effect of Avon’s approach under the Denial is to impermissibly apply the RETT to the value of the leasehold estate twice, resulting in an inaccurate inflation of the actual value of the real property.12 As contemplated by Trimble, it is up to the private parties who own the interests to allocate the value between themselves for purposes of taxation. They have done so in this case—as is evidenced by the Real Property Transfer Declaration and Walgreens’ payment of the RETT on the value of the Lease—and are properly paying Avon’s RETT on both elements. 11 Calculated based on actual payments to Avon of RETT for the Lease value. The Lease tenant, Walgreens, is paying Avon the RETT on the Lease. On or about September 22, 2017, Walgreens remitted a payment of $89,673.28 to Avon for payment of Avon’s RETT. See Town of Avon Receipt No. 01000036175, Exhibit 5. 12 For a useful comparison, the Eagle County Assessor assesses the leased fee interest at a value of $2,966,310. See R040114 - http://property.eaglecounty.us/assessor/taxweb/account.jsp?accountNum=R040114. ATTACHMENT 3: Appeal Town of Avon, Colorado March 15, 2018 Page 6 2. Avon’s RETT is properly applied only to the value of the transfer of the real estate interest. The RETT Ordinance establishes the only legal authority Avon has for imposing a tax on transfers of interests or possessory rights in and to real estate located in Avon. Avon can collect a RETT to the extent—but only to the extent—authorized by the RETT Ordinance. AMC § 3.12.030 is the governing section of the RETT Ordinance that imposes the tax. It provides: Except as provided in Section 3.12.060, there is imposed a tax on all transfers of interests or possessory rights in and to real estate located in the Town by deed, lease, assignment of lease, agreement for sale of stock or contract. The foundation of the RETT Ordinance is that the RETT applies only to “transfers of interests … in and to real estate…” or “transfer of possessory rights in and to real estate.” Under either scenario, the transfer has to be in real estate. Applicant does not dispute that Avon’s RETT applies to the value of the portion of the Transaction that conveyed an interest in the real estate, but does dispute that Avon’s RETT applies to the value of the portion of the Transaction that transferred an interest in the contractual rights memorialized by the Lease. In its Denial, Avon has ignored the only critical inquiry: Is the transfer of the interest of Applicant in the Lease a transfer of an interest or possessory right in and to real property? While the AMC does not define “real estate,” it is reasonable to assume that the AMC § 3.12.020 definition of “real property” was intended to apply: “Real property means property other than personal property as defined by the statutes of the State and does not include trailers or mobile homes…” The applicable definition of “real property” in the Colorado statues relating to taxation is: “’Real property’ means: (a) All lands or interests in lands to which title or the right of title has been acquired from the government of the United States… (b) All mines, quarries, and minerals in and under the land, and all rights and privileges thereunto appertaining; and (c) Improvements.”13 C.R.S. § 39-1-102(14). The definition of “personal property” in the Colorado statutes relating to taxation is: “everything that is the subject of ownership and that is not included within the term ‘real property…’” C.R.S. § 39-1-102(11). In this case, it is clear that the transfer and assignment of Applicant’s interest in the Lease is not “real estate” under either Avon’s definition or the definitions of the State statutes, and is therefore outside of the class of transactions to which Avon’s RETT can be imposed. Under neither the plain meaning of the term “real estate” nor any of the definitions in the RETT Ordinance or Colorado statutes can the contractual interest in the Lease be determined to be “real property.” Since it is not “real property”, the state statutes make clear that it is “personal property,” and the RETT Ordinance expressly provides that the RETT does not apply to personal property. As such, Avon cannot legally impose its RETT on the agreed-upon value of the Lease transfer. 13 “Improvements” is defined as “all structures, buildings, fixtures, fences, and water rights erected upon or affixed to land, whether or not title to such land has been acquired.” C.R.S. § 39-1-102(6.3). ATTACHMENT 3: Appeal Town of Avon, Colorado March 15, 2018 Page 7 Avon seems to take the position in its Denial that the since a portion of the Transaction included a transfer of an interest in real property, the RETT applies to and is calculated on the total consideration for the entire Transaction. However, this position is in clear violation of the RETT Ordinance. First, Avon’s legislation that imposes the tax clearly applies it only to real estate. See AMC § 3.12.030. In defining “real property,”14 Avon expressly excluded personal property.15 If Avon had wanted its RETT to apply as the Denial interprets it, it would have defined real property to include personal property that was conveyed within the same transaction as real property. But Avon did not do so. As such, the RETT cannot legally be applied to the value paid for the Lease assignment. Moreover, as discussed in Section 1 above, to the extent Avon’s RETT is intended to capture the increase in value to a property as a result of a long-term lease, that value is properly captured by applying the tax to the lease capitalization or rentals—as Avon’s RETT does—rather than by also consolidating it into the value of the leased fee interest. Avon goes on to base its denial, in part, on the fact that AMC § 3.12.060 does not include an applicable exemption. However, it would be non-sensical to include an exemption for a transaction to which the RETT is not properly applied in the first place. Finally, Avon argues in support of its Denial that the Exemption Application “indicates that the actual cash paid for transfer of title to the property was $8,190,340.” This is an erroneous and disingenuous characterization that cannot go unaddressed in this appeal. What the Exemption Application states is that “The total sale price for the transaction was $8,190,340.00, which included two elements…” (emphasis added). To the extent Avon’s Denial is based on this mischaracterization, it must be disregarded. PROPER CALCULATION OF VALUE OF TRANSFER OF INTEREST IN REAL ESTATE The parties’ agreed-upon allocation of the total price of the Transaction is set forth in the Real Property Transfer Declaration, which provides 4. Total Sale Price: Including all real and personal property. $8,190,340.00. 5. Was any personal property included in the transaction? … Yes, see attached addendum. Addendum The Total Sale Price of $8,190,340.00 set forth in paragraph 4 includes both the “Real Property Value” and the “Existing Lease Value” explained below. The Real Property Value was agreed to be $4,059,850.00… The Existing Lease Value was agreed to be $4,130,490.00… 14 Again, Avon’s definition of “Real property” is being substituted for the term “real estate,” since Avon’s RETT Ordinance does not define “real estate.” 15 “Real property means property other than personal property…” AMC § 3.12.020. ATTACHMENT 3: Appeal Town of Avon, Colorado March 15, 2018 Page 8 See Real Property Transfer Declaration, Exhibit 4. Under the RETT Ordinance, Avon can—and must—apply its tax only to the value of the transaction that is properly within the RETT. Avon’s RETT allows it to tax only the real estate portion of the transaction, and requires it to determine “consideration” on the basis of the “actual cash paid and/or value of the property delivered … for the transfer of ownership or title to … real property.” As City and County of Denver makes clear, the private parties who own the interests are responsible for apportioning the value. As such, Avon is required to apply the RETT to the business deal the parties intended. The parties to this Transaction stated in the Real Property Transfer Declaration what that actual cash paid or value of the property delivered for the real property was: “The Real Property Value was agreed to be $4,059,850.00.” By allocating the entirety of the transaction value to the transfer of the real property interest, Avon has fundamentally changed the business deal between buyer and seller. In doing so, Avon has violated its RETT Ordinance. CONCLUSION As the Manual acknowledges, a property encumbered by a long-term, non-market lease has two components of value—the value of the leased fee interest, and the value of the leasehold interest. Avon’s RETT, when properly applied, captures both of these values. However, as applied by the Denial, Avon is exceeding its authority by improperly including the value of the leasehold interest in the value of the leased fee interest for purposes of calculating the consideration paid for the real estate. Furthermore, Avon is improperly construing the transfer of the landlord’s contractual rights memorialized by the Lease as a transfer of an interest in real estate. Avon can appropriately capture the value of the leasehold interest once; but it cannot improperly capture and tax it twice. For these reasons, Avon’s Denial should be reversed, and Applicant should be refunded its $83,039.80 overpayment. Yours very truly, SARAH J. BAKER PC Sarah J. Baker, Esq. SJB:sw Enclosures cc: Eric Heil, Town Attorney (by email) Scott Wright, Assistant Town Manager and Finance Director (by email) Martha Anderson Trinity-Sunroad LLC (by email) ATTACHMENT 3: Appeal EXHIBIT 1 TO APPEAL OF DENIAL OF APPLICATION FOR EXEMPTION FROM REAL PROEPRTY TRANSFER TAX WARRANTY DEED ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal EXHIBIT 2 TO APPEAL OF DENIAL OF APPLICATION FOR EXEMPTION FROM REAL PROEPRTY TRANSFER TAX LEASE ASSIGNMENT ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal EXHIBIT 3 TO APPEAL OF DENIAL OF APPLICATION FOR EXEMPTION FROM REAL PROEPRTY TRANSFER TAX EXEMPTION APPLICATION ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ADDENDUM ATTACHED TO AND MADE A PART OF THE TRANSFER TAX EXEMPTION APPLICATION For the Property at: 15 Sun Road, Avon, Colorado On January 17, 2018, Trinity-Sunroad, LLC conveyed property located at 15 Sun Road, Avon, Colorado to 15 Sun Road, LLC. The total sale price for the transaction was $8,190,340.00, which included two elements: (1) $4,059,850 as value for the real property, and (2) $4,130,490 for the existing lease value. These numbers are reflected on the Real Property Transfer Declaration (Form TD-1000) executed by the Grantee and submitted to the Eagle County Clerk and Recorder contemporaneous with the recording of the deed of conveyance, a copy of which is enclosed. In order to avoid any possibility of imposition of a lien by the Town of Avon, at the closing of the transaction, the Town of Avon Real Property Transfer Tax was remitted based on the total sale price. The payment to the Town was in the amount of $164,236.80. However, as noted above, the total sale price includes consideration for other than an interest in real property as defined by the Town of Avon Real Property Transfer Tax Ordinance, memorialized in Chapter 3.12 of the Avon Municipal Code. Trinity-Sunroad LLC hereby claims payment under protest, and exemption from payment of the real estate transfer tax for the non-real property portion of the sale price—that is, the difference between the total sale price and the sale price paid for the real property interest. Trinity-Sunroad LLC calculates the proper payment due under, and overpayment of, the Town of Avon Real Property Transfer Tax Ordinance as follows: (A) Actual payment to the Town: $164,236.80 (B) Transfer tax on consideration for real property interest: $81,197.00 (C) Overpayment: $83,039.80 Trinity-Sunroad, LLC hereby requests prompt refund from the Town of the same. For further information, please contact Grantor’s counsel: Sarah J. Baker Sarah J. Baker PC 1099 Capitol Street #204 Post Office Box 4551 Eagle, CO 81631 Telephone: (970) 331-0799 E-Mail: sbaker@sbakerpc.com ATTACHMENT 3: Appeal EXHIBIT 4 TO APPEAL OF DENIAL OF APPLICATION FOR EXEMPTION FROM REAL PROEPRTY TRANSFER TAX REAL PROPERTY TRANSFER DECLARATION ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal EXHIBIT 5 TO APPEAL OF DENIAL OF APPLICATION FOR EXEMPTION FROM REAL PROEPRTY TRANSFER TAX TOWN OF AVON RECEIPT NO. 01000036175 ATTACHMENT 3: Appeal ATTACHMENT 3: Appeal Avon Municipal Code CHAPTER 3.12 - Real Property Transfer Tax 3.12.010 - Title. This Chapter shall be known and may be cited as "The Town of Avon Real Property Transfer Tax Ordinance." (Ord. 80-6 §1) 3.12.020 - Definitions. With reference to this Chapter and the interpretation hereof, the following terms shall have the meanings specified: Consideration means and includes the actual cash paid and/or value of the property delivered, or contracted to be paid or delivered, in return for the transfer of ownership or title to, or any other possessory interest in, real property, and shall include the amount of any lien, mortgage, contract indebtedness or other encumbrance, either given to secure the purchase price or any part thereof, or remaining unpaid on the property at the time of sale. The term does not include the amount of any outstanding lien or encumbrance in favor of the United States, the State or of a municipal or quasi- governmental agency, corporation or district for taxes, special benefits or improvements. In the event that the transaction or transfer is by lease agreement not specifically exempted in Section 3.12.060 of this Chapter, the consideration shall be computed based upon the capitalization or the current annual rental for ten (10) years, plus any additional consideration, paid or to be paid. When it is not possible to determine the annual rental, the tax shall be based upon the appraised value of the property covered by the lease, and this decision, that the annual rental cannot be determined, shall be solely at the discretion of the Town Manager. The lessee of any taxable lease may elect to pay the real estate transfer tax based upon actual lease payments. The amount of tax shall be the real estate transfer tax rate charged against the amount of the lease payment less the portion of lease payments for taxes, insurance, common area maintenance and similar costs. Any portion of lease payments which is attributable to capital improvements shall be included in the amount of the lease payment subject to the real estate transfer tax. For the purposes of this definition, capital improvement shall be defined as new construction, remodeling and installation of fixtures appurtenant to the leased property. The applicable real estate transfer tax shall be due within thirty (30)days after the lease payment is made for lessees who elect to pay real estate transfer taxes based upon the amount of actual lease payments. The Town Manager may permit lessees who elect to pay real estate transfer taxes based upon the amount of actual lease payments to pay the applicable real estate transfer taxes on an annual basis for lease payments made during the prior year. The due dates, delinquencies, penalties and interest set forth in Section 3.12.090 of this Chapter shall otherwise apply to payments by lessees who elect to pay real estate transfer taxes based upon the amount of actual lease payments. Deed in lieu of foreclosure means a conveyance by a property owner to a secured party of property which is the subject of a mortgage, deed of trust or other security instrument, in consideration of the cancellation of the indebtedness secured by such security instrument. Density units means density units as designated on the official Town plat of the Town, as amended, and density allocations assigned to specific lots in the Town by platting or designation through specially planned units. Eagle County employee means an employee working in Eagle County who works an average of at least thirty (30) hours per week on an annual basis or earns seventy-five percent (75%) of his or her income and earnings by working in Eagle County; or a retired individual, sixty (60) years or older, who has worked a minimum of five (5) years in Eagle County for an average of at least thirty (30) hours per week on an annual basis. ATTACHMENT B: Chapter 3.12 Avon Municipal Code Person means any individual, corporation, business trust, estate, trust, partnership, association or other legal entity. Primary residence means the occupation and use of a residence as the primary residence, which shall be determined by the Town Manager by taking into account the following circumstances: voter registration in Avon, Colorado (or signing an affidavit stating that the applicant is not registered to vote in any other place); stated address on Colorado driver's license or Colorado identification card; stated address on motor vehicle registration; ownership or use of other residences not situated in Avon, Colorado; and stated residence for income and tax purposes. Occupation and use of a residence as a primary residence must occur within thirty (30) days of transfer of the real property, provided that the Town Manager may grant an extension of an additional ninety (90) days if extenuating circumstances are found to exist in the Town Manager's discretion and provided that such extension request is included with the applicant's application for exemption. Real property means property other than personal property as defined by the statutes of the State and does not include trailers or mobile homes, except trailers or mobile homes, which, by way of a foundation, have become attached as fixtures to the land on which they are located. Real property further means and includes density units. Any transfer of density units, whether transferred separately from or as a part of a transfer of title to real property, shall be taxable under the provisions of this Chapter. Town Manager means the person appointed pursuant to Section 8.1 or Section 8.2 of the Town Charter or, if the office of Town Manager is vacant, the Mayor pursuant to Section 8.1 of the aforementioned Charter. Transfer means any grant, conveyance or alienation of real property, as evidenced by deed, instrument of conveyance or exchange, or any other writing wherein or whereby title to real property is granted, conveyed or alienated, or the conveyance of a possessory interest including any other indicia of ownership without the passing of legal title. (Ord. 15-02 §3; Ord. 12-11 §2; Ord. 07-17 §1; Ord. 85-5 §1; Ord. 83-12 §1; Ord. 81-12 §1; Ord. 80-6 §5) 3.12.030 - Imposition of tax. Except as provided in Section 3.12.060, there is imposed a tax on all transfers of interests or possessory rights in and to real estate located in the Town by deed, lease, assignment of lease, agreement for sale of stock or contract. The tax imposed is and shall constitute a tax payable with respect to the transfer, and the tax is due and payable at the time of the transfer. (Ord. 80-6 §3) 3.12.040 - Persons liable for tax. Any purchaser or purchasers, or any other transferee or transferees of real property the transfer of which is subject to the imposition of the tax described in Section 3.12.030, shall be jointly and severally liable for the payment of the tax. (Ord. 80-6 §4) 3.12.050 - Computation of tax. The amount of tax payable shall be determined and computed as set out below: (1) Where the amount of consideration is five hundred dollars ($500.00) or less, no real property transfer tax shall be imposed, and all such transactions shall be exempt. ATTACHMENT B: Chapter 3.12 Avon Municipal Code (2) On and after November 1, 1987, where five hundred dollars ($500.00) or more, the real property transfer tax shall be two percent (2%) of the consideration. (Ord. 87-17 §1; Ord. 80-6 §6) 3.12.055 - Required reporting of leases. The lessee of any lease which is not exempt from the applicability of the real estate transfer tax as defined in Paragraph 3.12.060(10) below shall report such lease to the Town within thirty (30) days after execution of such lease in accordance with forms and procedures established by the Town Manager. The required reporting information shall include, at a minimum, the name and contract information of the lessee, the term of the lease with all possible extensions and the amount of consideration to be paid. Failure to report a lease as required in this Section shall be a violation of this Chapter. (Ord. 12-11 §3) 3.12.060 - Exemptions. Unless the method of transfer is contrived for the purpose of evading the real property transfer tax imposed by this Chapter, the real property transfer tax shall not apply to the situations described below: (1) Any transfer wherein the United States or any agency or instrumentality thereof, the State, any county, city and county, municipality, district or other political subdivision of the State is either the grantee or grantor; (2) Any transfer granting or conveying title to real property in consequence of a gift of such property, where no consideration other than love and affection, charity or other such motive is, in fact, present; (3) Any decree or agreement partitioning, terminating or evidencing termination of a joint tenancy in real property, except where additional consideration is paid in connection with such partition or termination; (4) The transfer of title or interest in real property by reason of death, will or decree of distribution; (5) Transfers made pursuant to capital investment, reorganization, merger, consolidation, liquidation, dissolution or termination of corporations, partnerships, limited liability companies, trusts or other business entities recognized in Colorado for no consideration other than acquisition or cancellation or surrender of stock or percentage ownership interest in such business entity, to the extent that the relative ownership interest of such persons in the real property or in the percentage ownership of the business entity are the same after the transfer as immediately before the transfer and there is no monetary consideration for that portion of the transfer; (6) Transfers made to effectuate any plan confirmed or ordered by any court of competent jurisdiction under the Bankruptcy Act or in any equity receivership proceeding; (7) Any transfer evidenced by a deed made and delivered without consideration for the purpose of confirming, correcting, modifying or supplementing a transfer previously recorded; making minor boundary adjustments; removing clouds of title; granting easements, rights-of-way or licenses; (8) Any transfer granting title to cemetery lots; (9) Any transfer by decree or order of court of record quieting, determining or resting title, including a final order awarding title pursuant to a condemnation proceeding; (10) Any lease or other instrument or contract executed after January 11, 2013, which transfers to the transferee a possessory right in real property where the possessory right is granted for a period of twenty-five (25) years or less or where, at the time of assignment thereof, twenty-five ATTACHMENT B: Chapter 3.12 Avon Municipal Code (25) years or less of the term remains. (For purposes of this Chapter, where the initial term of the possessory right is for a period of less than twenty-five (25) years, but such right may be extended for a period exceeding twenty-five (25) years, or for periods which in the aggregate exceed twenty-five (25) years, the term of the possessory right shall be calculated as including the initial term and all extensions thereof. Leases which were executed on or prior to January 10, 2013 but are amended after January 10, 2013 to extend the term of the lease shall be treated as having been executed after January 10, 2013, provided that the real estate transfer tax shall be applicable only to the shorter period of: (1) the term of such lease in excess of twenty-five (25) years; or (ii) the term of the extension approved by lease amended after January 10, 2013, which exceeds the term of the lease that existed prior to January 10, 2013; (11) Any transfer of a mineral or royalty interest by deed or otherwise; (12) Transfers to secure a debt or other obligation, or transfers of releases of property which is security for a debt or other obligation; (13) Any transfer by deed or conveyance under execution sale or foreclosure sale under a power sale or court decree or lien foreclosure, sheriff's deed, public trustee's deed or treasurer's deed or any transfer by deed in lieu of foreclosure, provided that transfers encompassed by this Section: a. Shall be exempt only if the grantee is the person, firm or entity holding the obligation or instrument upon which the proceeding is based or which, in the case of a deed in lieu of foreclosure, is being canceled in exchange for the transfer, and b. Shall be exempt only to the extent of the obligation to be satisfied at the execution or foreclosure sale and any obligations to prior lienholders paid from the proceeds of the sale or, in the case of a deed in lieu of foreclosure, to the extent of the instrument cancelled by the transfer; (14) Any sale or conveyance of real property or improvements for the purpose of constructing or providing low or moderately priced housing units for sale or lease to low or moderate income persons; provided, that the parties to the transaction shall apply to the Town Manager for the exemption prior to the occurrence of the transaction from which exemption is sought, and the parties shall agree to appropriately restrict the future use of the property to low and moderately priced housing units by recorded agreement, deed restriction, covenants, declarations or similar instruments as may be required by the Town Manager; (15) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a. The same applicant has not previously received an exemption pursuant to this subsection; b. An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1. An affidavit that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one ATTACHMENT B: Chapter 3.12 Avon Municipal Code (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record. c. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. (16) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided that the following conditions are met: a. The applicant previously received a primary residence exemption pursuant to Section 3.12.060(15) and the applicant has satisfied the conditions of subsection (15)b.1. and 2. of Section 3.12.060; and b. An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1. An affidavit that the applicant's current primary residence used to satisfy the requirements of Section 3.12.060(15) is within the town; that the applicant meets the definition of an Eagle County employee; that the real property is being purchased for use as a new primary residence and not for investment or resale (provided that a co- signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co- purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event that the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence or shall cease to meet the definition of an Eagle County employee within one (1) year after closing and granting to the town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record; and c. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. (17) The subsequent transfer of a residence involved in a "tax free" or "tax deferred" trade under the Internal Revenue Code wherein the interim owner acquires property for the sole purpose of reselling that property as part of a qualified exchange and the property is resold within twenty- four (24) months after the first transfer. In these cases, the first transfer of title is subject to the real property transfer tax and the subsequent transfer will only be exempt as long as a transfer tax has been paid in connection with the first transfer of such residence in such exchange. In the event the consideration for the subsequent transfer is greater than the consideration for the first transfer, transfer tax shall be due on such increased amount of consideration. (Ord. 15-02 §§4, 5; Ord. 12-11 §4; Ord. 10-10 §2; Ord. 07-17 §§2, 3; Ord. 02-14 §1; Ord. 00-09 §§1, 2; Ord. 97-12 §1; Ord. 96-13 §1; Ord. 89-15 §1; Ord. 89-12 §1; Ord. 83-12 §§2, 3; Ord. 80- 6 §7) 3.12.065 - Tax credit. Notwithstanding any other provisions of this Chapter, there shall be granted to each person owing the tax on transfers within The Village (at Avon) a temporary tax credit against collection of the tax equal ATTACHMENT B: Chapter 3.12 Avon Municipal Code to the amount of any real estate transfer fee paid by or on behalf of such person. The amount of the credit shall not exceed the amount of the tax. No such credit shall be granted subsequent to termination of the collection of the real estate transfer fee pursuant to the annexation and development agreement for The Village (at Avon). Neither the ability of the Town to grant the temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition of a new tax or a tax policy change. (Ord. 02-06 §2; Ord. 00-13 §4) 3.12.070 - Application for exemption—appeal. (a) Application required. No transfer of real property shall be exempt from the imposition of the real estate transfer tax imposed in Section 3.12.030 unless a complete application for exemptions is filed with the Town and such application is approved by the Town. An application may be filed no more than seventy-five (75) days prior to a transfer of real property or within seventy-five (75) days after the transfer of real property. No application for exemption from real property transfer tax shall be received and no such application shall be approved if submitted to the Town more than four (4) months after the date of transfer, unless the Finance Director finds good cause exists for a later filing. Notwithstanding the foregoing, an application for exemption for low and moderate income housing projects pursuant to Section 3.12.060(14) must be submitted and approved prior to the transfer of real property and no such application for exemption pursuant to Section 3.12.060(14) may be received or approved after the transfer of real property. (b) Form of application. The form of application for exemption from real property transfer tax, the form for an appeal and any other forms related to this Chapter shall be determined by the Town Manager. The form of application shall require the applicant to provide all information necessary to determine if such application complies with the definition and intent of the exemptions set forth in Section 3.12.060 above. (c) Application review. The Town Manager or designee shall review applications for exemption from real property transfer tax within thirty (30) days of receipt of a complete application. The failure of the Town Manager or designee to review an application for exemption from real property transfer tax within thirty (30) days shall not be deemed to constitute an approval of an application for exemption from real property transfer tax; however, the applicant may elect to appeal the application directly to the Town Council according to the procedures set forth in subsection (d) below. If the Town Manager or designee determines that the application does not include adequate information to determine whether the application complies with an exemption stated in Section 3.12.060 above, the Town shall send a communication to the applicant stating that the application shall be denied unless the applicant provides additional information, shall state the required information and shall provide a maximum of thirty (30) days for the applicant to provide additional information. The Town Manager or designee shall review additional information which is timely submitted within thirty (30) days of receipt. The Town Manager or designee shall approve, partially approve or deny the application in writing based upon compliance with the exemptions, or the intent of the exemptions, set forth in Section 3.12.060. Inadequate or inaccurate information which does not demonstrate compliance with the exemptions set forth in Section 3.12.060 shall be grounds for denial of an application. (d) Appeal to Council. Any person whose application for exemption from real property transfer tax is not acted upon within the timeframe set forth in subsection (c) above or whose application is denied or partially approved may appeal such decision to the Town Council in accordance with the procedures and requirements of this Section. The applicant shall file a written appeal in writing with the Town Clerk within thirty (30) days after the date of transmittal of the decision of the Town Manager or designee to deny such application. The failure to file a written appeal within thirty (30) days after the date of transmittal of the decision to deny the application shall bar any further consideration of the application, shall bar any appeal to the Town Council and shall bar any judicial review by a Colorado court. The written appeal shall state the reasons for the appeal. An appeal which is filed timely shall be considered and acted upon by the Town Council within forty-five (45) days after the date of receipt. The Town shall provide at least three (3) days' prior notice to the applicant stating the date, ATTACHMENT B: Chapter 3.12 Avon Municipal Code time and location where the Town Council will consider the appeal. The decision of the Town Council shall be in writing. The Town Council shall determine whether to approve, partially approve or deny the application based on compliance with the exemptions, or the intent of the exemptions, set forth in Section 3.12.060. Inadequate or inaccurate information which does not demonstrate compliance with the exemptions set forth in Section 3.12.060 shall be grounds for denial of an application. The failure by the Town Council to hear and decide an appeal within forty-five (45) days after the receipt of the appeal shall result in the approval of the application. (e) False or inaccurate information. Any approval of an application for exemption from real property transfer tax which is based upon false or inaccurate information provided by the applicant shall be void ab initio, and such transfer shall be subject to all real property transfer tax imposed, along with penalties and interest calculated from the date of such transfer. (f) Duration of approval. An approval for exemption from real property transfer tax which is granted prior to a transfer shall be valid for seventy-five (75) days and shall then expire if the transfer has not occurred. (g) Fees. The Town Council may adopt a resolution setting fees for the processing and reviewing of applications and appeals as is determined reasonably necessary to recover the costs incurred by the Town. (Ord. 15-02 §6; Ord. 10-10 §2) 3.12.080 - Lands affected. When a transaction subject to this Chapter includes property located within the Town and property located outside the Town, the tax imposed under this Chapter shall be computed only upon the consideration attributable to the real property located within the Town. (Ord. 80-6 §9) 3.12.090 - Due dates, delinquencies, penalties and interest. The tax imposed under this Chapter is due and payable at the time the deed, instrument or writing effecting a transfer subject to the tax is delivered, and is delinquent if unpaid within thirty (30) days thereafter. In the event that the tax is not paid prior to becoming delinquent, a delinquency penalty of ten percent (10%) of the amount of tax due shall accrue. In the event a portion of the tax is unpaid prior to becoming delinquent, the penalty shall only accrue as to the portion remaining unpaid. Interest shall accrue at the rate of one percent (1%) per month, or fraction thereof, on the amount of tax, exclusive of penalties, from the date the tax becomes delinquent to the date of payment. Interest and penalty accrued shall become part of the tax. (Ord. 80-6 §11) 3.12.100 - Unpaid tax to constitute lien—notification—tax deemed a debt. (a) The amount of the real property transfer tax imposed by this Chapter, and penalty and interest due thereon, is assessed against the property transferred, and, if not paid when due, such tax, penalty and interest, if any, shall constitute a lien on the property for the amount thereof, which lien shall continue until the amount thereof is paid or until its discharge of record by foreclosure or otherwise. (b) If the tax is unpaid and delinquent, the Town Manager shall give written notification to the purchaser at the address shown on the deed or instrument, or his or her last known address, of said delinquency. Said notification shall be mailed certified or registered mail, postage prepaid, return receipt requested, and shall be effective on the date of mailing. If the tax, penalty and interest are not ATTACHMENT B: Chapter 3.12 Avon Municipal Code paid within thirty (30) days of the effective date of the notification, the Town Manager shall make the same delinquent on the Town's tax roll and shall, at least once each calendar year, but not sooner than the first day of December, certify such delinquencies, along with the interest and penalty, to the county treasurer; and the county treasurer shall extend such delinquencies upon the real property tax rolls of the County and collect the same in the same manner as delinquent general taxes levied upon such property. Upon certification of the delinquent taxes, the penalties and interest thereon shall also become due and payable. (c) The amount of the tax penalty and interest imposed under the provisions of this Chapter shall be deemed a debt owed to the Town. Any person owing money to the Town under the provisions of this Chapter shall be liable to an action brought in the name of the Town for the recovery of such amount. (Ord. 80-6 §12 (A, B, C)) 3.12.110 - Allocation of revenue. All revenues derived from the tax imposed pursuant to this Chapter shall be allocated as follows: On and after January 1, 1988, said revenues shall be deposited into the public improvements fund of the Town for the purpose of capital improvements, including but not limited to, railroad crossings, bridges and streets, payment of principal of premium, if any, and interest on debt incurred by the Town relating to capital improvements or, upon determination of an emergency by unanimous minus one (1) vote of Council Members present, for any valid municipal purpose. (Ord. 87-19 §1; Ord. 80-6 §14) 3.12.120 - Town Manager to enforce—collection. (a) The Town Manager is charged with the enforcement of the provisions of this Chapter. (b) All banks, title companies, escrow companies, saving and loan institutions, attorneys, real estate brokers and salespersons and other closing agents, permitted to do business as such under the laws of the State, are authorized to collect and remit to the Town on behalf of the purchaser the Town real property transfer tax. (Ord. 80-6 §10) 3.12.130 - Penalty for violations—remedies not exclusive. (a) Any person who fails or refuses to pay any tax due under this Chapter, fails to report a lease which is not exempt from the applicability of real estate transfer taxes as set forth in Paragraph 3.12.60(10) of this Chapter or otherwise fails to comply with any provision of this Chapter may be punished in accordance with the provisions of Section 1.08.010 of this Code. (b) Any remedies provided for in this Chapter shall be cumulative and not exclusive and shall be in addition to any other remedies provided by law. (Ord. 12-11 §5; Ord. 04-05 §1; Ord. 80-6 §12(D, E)) 3.12.140 - Refund of tax paid in error. A transferee who has paid a real estate transfer tax, or portion thereof, in error may apply for a refund. Any such application for refund must be filed within one (1) year after the day of recording of the deed causing the transfer. The failure to file an application for exemption from a real estate transfer tax within the timeframes established in Section 3.12.070 shall not constitute the payment of a real estate ATTACHMENT B: Chapter 3.12 Avon Municipal Code transfer tax in error. Any person whose application is denied may appeal to the town council in accordance with Subsection 3.12.070(b) of this chapter. (Ord. 15-02 §7; Ord. 04-08 §1) ATTACHMENT B: Chapter 3.12 Avon Municipal Code Avon, Colorado STORE #15101 By this Lease, made the 281h day of July, 2011, between TRINITY-SUNROAD, LLC, a Georgia limited liability company, hereinafter called "Landlord", and WALGREEN CO., an Illinois corporation, hereinafter called "Tenanf'. 1. Landlord hereby leases to Tenant, and Tenant hereby rents from Landlord, for a term commencing October 1, 2012, and continuing to and including September 30, 2087, as such dates shall be adjusted pursuant to Article 3 herein and subject to prior termination as hereinafter provided, the premises to include both the real property and a building and other improvements located at the northwest corner of Avon Road and Sun Road, in the City of Avon, County of Eagle, State of Colorado, together with all improvements, appurtenances, easements, and privileges belonging thereto. The building to be erected and completed by Landlord shall contain a total of approximately 15,655 square feet which consists of approximately 11,420 square feet of first floor area and approximately 3,805 square feet of mezzanine area (the "Building"). All of the foregoing shall be as shown on the site plan attached hereto and made a part hereof as Exhibit "A" (the "Site Plan"), and as legally described in Exhibit "B" attached hereto and made a part hereof. The Building, real estate, and other improvements to be constructed thereon are hereinafter collectively referred to as the "Leased Premises." (Remainder of page intentionally left blank.) ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 THE TERMS, COVENANTS AND CONDITIONS OF SAID LETTING ARE AS FOLLOWS: RENT 2. Tenant shall pay rent for the Leased Premises, as follows: (a) A fixed rent of per month, commencing on the first day of the Term (as defined in Article 3[a] hereof) and continuing thereafter for the remainder of the Term. Fixed rent shall be payable on the first day of each and every month in advance and shall be properly apportioned for any period less than a full calendar month. (b) If a sum equal to - - - - of the Gross Sales, as hereinbelow defined, except Gross Sales from the sale of food items, if any, and prescription items, if any, plus % of such Gross Sales of food items, if any, and prescription items (excluding prescription items sold pursuant to Third Party Prescription Plans as defined below), if any,made by Tenant in the operation of Tenant's store in the Leased Premises in any lease year (as defined in Article 3[c]) shall exceed the total fixed rent for such lease year, then and in such event, and within forty-five (45) days after the end of each lease year, Tenant shall pay to Landlord the amount of such excess as additional percentage rent. However, in no event shall the total of fixed rent plus additional percentage rent (if any) payable by Tenant in any lease year exceed twice the amount of fixed rent payable in such lease year, which amount shall be proportionately decreased for any lease year that is not comprised of a full twelve (12) months. Within forty-five (45) days after the end of each lease year Tenant shall furnish to Landlord a statement of the total amount of such Gross Sales and the amount of percentage rent due, if any for such lease year (the "Percentage Rent Statement"). The aforesaid amount(s) shall be proportionately adjusted in the case of a lease year of more or less than a full twelve (12) calendar months. (c) (i) The term "Gross Sales" as used herein is defined as the total amount of Tenant shall also have the right to deduct and exclude from Gross Sales a sum equal to any approximate amounts which may be paid by Tenant or which Tenant may add to or include in its selling prices of various articles by reason of any sales taxes, use taxes, retailers' occupation taxes, excise taxes at the retail level and the like, now or hereafter imposed and however entitled, and which are based upon the amounts of sales or the units of sales. (ii) "Third Party Prescription Plans" shall be deemed to be 2 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 (d) Tenant shall cause to be kept, in accordance with its customary accounting procedures, records of the Gross Sales made by Tenant in the operation of Tenant's store on the Leased Premises. Landlord and Landlord's duly authorized representative, at reasonable times during business hours, shall have access to such records at the place where the same are kept, for the purpose of inspecting and auditing the same, provided that any such inspection and audit be made by Landlord within six (6) months after the expiration of any lease year. If such audit by Landlord reveals a deficiency in the reported Gross Sales of five percent (5%) or more and which results in an underpayment of additional percentage rent, Tenant shall pay in addition to the additional percentage rent due thereon the reasonable cost of such audit. If such audit reflects an overstatement in Gross Sales and Tenant shall have overpaid any amounts that may be due hereunder for percentage rents, Landlord shall refund to Tenant any such overpayment. If Landlord does not object in writing to any Percentage Rent Statement above mentioned within said time period, such Percentage Rent Statement shall be conclusively presumed to be correct and final, and thereafter Tenant shall not be required to preserve the records from which such Percentage Rent Statement was compiled. Landlord agrees not to divulge to any person or entity the information obtained by Landlord and Landlord's representatives from such records or from the Percentage Rent Statements above mentioned, except to any mortgagee or prospective purchaser of the Leased Premises and except as may be necessary to enforce Landlord's rights under this Lease. Nothing herein contained, however, shall be deemed to confer upon Landlord any interest in the business of Tenant on the Leased Premises. (e) Until further notice by Landlord to Tenant, rent checks shall be payable to and mailed to: Trinity-Sunroad, LLC c/o Trinity Development Group, LLC 1099 Recipient: Same as above (f) Landlord shall, prior to the first day of the Term, provide Tenant (Attn.: Corporate and Transactional Law Department, Real Estate Group, 104 Wilmot Road, MS #1420, Deerfield, Illinois 60015) with a completed IRS Form W-9. Any successor to Landlord shall likewise provide Tenant with such completed IRS Form W-9 as a condition precedent to any rent or other payment from Tenant. TERM. RENT COMMENCEMENT. LEASE YEAR. OPTIONS 3. (a) Term. The term shall be adjusted so that it commences on the Possession Date (as defined in Article 4), and shall continue for seventy five (75) years thereafter (the 'Term"); provided, however, that if such Possession Date be other than the first day of the calendar month, then the Term shall continue to and include the last day of the same calendar month of the seventy fifth (751h) year thereafter. (b) Rent Commencement. (i) Tenant shall commence paying fixed rent pursuant to Article 2 hereof as of the first day of the Term. Provided however, in the event that Tenant is unable to open its store for business at the Leased Premises within thirty (30) days of the Possession Date due to the fault of Landlord, then in such event rent and other charges due under the terms of this Lease shall abate for the time period commencing on the thirty-first (31 51) day after the Possession Date and continuing thereafter until the day immediately preceding the date that Tenant opens its store for business at the Leased Premises. Notwithstanding the foregoing, nothing contained in this Lease shall be construed to obligate Tenant to open for business nor to obligate Tenant (or its successors or assigns) to continue to operate its business in the Leased Premises. 3 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 (ii) Anything to the contrary in this Lease notwithstanding, Tenant shall have no obligation to pay rent or other charges until Landlord has provided all of the information and instruments required by Articles 4, 5, 7, 11 and 18 of this Lease, as applicable, provided that upon Tenant's receipt of all such information and instruments, Tenant shall pay all rent and other charges which accrued and would have been paid but for Landlord's failure to provide any or all such required information and instruments. (iii) Landlord and Tenant hereby acknowledge and agree that, although fixed rent and other charges shall accrue as of the Possession Date as provided in Article 3(b)(i) above, Tenant shall withhold the payment of fixed rent and other charges due for the first sixty (60) days of the Term (the "Punchlist Withholding") as security for Landlord's completion of Punchlist Items (as defined in Article 4) to Tenant's reasonable satisfaction upon the terms of this Section. Tenant shall release the Punchlist Withholding to Landlord within ten (10) days of the earliest to occur of the following events: (1) the failure of Tenant to tender a Punchlist Notice (as defined in Article 4(a)(ii) hereof) within sixty (60) days of the Possession Date; (2) the failure of Tenant to re- inspect the Leased Premises within thirty (30) days of Landlord's notice of completion of the Punchlist Items as provided herein; or (3) Landlord's completion of the Punchlist Items to Tenant's reasonable satisfaction. Landlord shall complete the Punchlist Items within sixty (60) days of Landlord's receipt of the Punchlist Notice from Tenant, and upon such completion, Landlord shall send written notice thereof to Tenant's Divisional Vice President of Construction, 106 Wilmot Road, MS 1630, Deerfield, Illinois 60015. Tenant shall re-inspect the Leased Premises within thirty (30) days of Landlord's notice (a "Tenant Re-Inspection") and if Tenant determines as a result of a Tenant Re-Inspection that Landlord has failed to complete the Punchlist Items to Tenant's reasonable satisfaction, Tenant shall notify Landlord of the same within fifteen (15) days of the Tenant Re-Inspection (a "Re-Inspection Notice"), identifying in such notice the then outstanding Punchlist Items which Landlord must complete. In the event that a Tenant Re-inspection reveals that Landlord has failed to complete the Punchlist Items to Tenant's reasonable satisfaction, Landlord shall additionally reimburse Tenant for any costs incurred by Tenant in connection with such Tenant Re-Inspection, including, without limitation, the cost of any independent testing or inspection performed by or on behalf of Tenant and any re-inspection of the Leased Premises as a result thereof. If Landlord shall not complete the Punchlist Items within sixty (60) days after receipt of the Punchlist Notice or within thirty (30) days after receipt of a Re-Inspection Notice, as the case may be, then Tenant, at Tenant's option, may correct and complete the Punchlist Items on behalf of Landlord in such manner as Tenant sees fit, and the full cost and expense incurred by Tenant in doing so shall be immediately due by Landlord to Tenant. Tenant shall be and is hereby authorized and directed to deduct all costs and expenses due and owing Tenant under the terms of this Paragraph from the Punchlist Withholding, and, if the sums due and owing Tenant hereunder exceed the amount of the Punchlist Withholding, from rent and other sums due by Tenant under this Lease. (c) Lease Year. The first lease year shall commence on the Possession Date and, if such date shall be on the first day of a calendar month, shall end twelve months thereafter, or, if such date be other than the first day of a calendar month, shall end on the last day of the same calendar month of the first year thereafter, and each succeeding lease year shall be each succeeding twelve month period. (d) Termination Options. Tenant shall have the right and option, at Tenant's election, to terminate this Lease effective as of the last day of the three hundredth (3001h) full calendar month of the Term, or effective as of the last day of any month thereafter. If Tenant shall elect to exercise any such option, Tenant shall send notice thereof to Landlord, at least twelve (12) months prior to the date this Lease shall so terminate, but no notice shall be required to terminate this Lease upon the expiration of the Term. DELIVERY OF POSSESSION 4. (a) (i) Landlord shall Substantially Complete the Leased Premises no sooner than October 1, 2012, or as soon as possible thereafter, and in any case not 4 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 later than October 1, 2013, and at the same time deliver to Tenant a full set of keys to the Building. Tenant shall accept possession of the Leased Premises upon such Substantial Completion, and the date upon which Tenant accepts possession of the Substantially Completed Leased Premises shall be referred to herein as the "Possession Date". Landlord and Tenant shall confirm the Possession Date by executing the "Date Confirmation Agreement" attached hereto as Exhibit "G". Tenant shall have no obligation to accept possession of the Leased Premises during the period between the third Monday in October and January 1 (the "Blackout Period"). provided, however, that if Landlord shall so put Tenant into possession during said Blackout Period, then the Possession Date shall be deemed to be January 1 (regardless that physical possession of the Leased Premises has been delivered and accepted prior thereto). If Tenant shall elect to enter into possession of the Leased Premises during the Blackout Period and opens for business within the Blackout Period, then notwithstanding the foregoing, the Possession Date shall not be delayed to January 151 and, instead, the Possession Date shall be the date that Tenant so entered into possession of the Leased Premises during the Blackout Period. Subject to the Blackout Period and to Landlord's compliance with the notice provisions of this Article, Tenant shall be required to accept possession of the Leased Premises on the date that the Leased Premises is Substantially Complete (as defined below). Landlord shall send written notice to Tenant, Attn.: Divisional Vice President of Construction, 106 Wilmot Road, MS 1630, Deerfield, Illinois 60015, with a copy to the Corporate and Transactional Law Department, Real Estate Group, 104 Wilmot Road, MS 1420, Deerfield, Illinois 60015 at least forty-five (45) days (but not more than sixty [60] days) before such possession is to be delivered, provided, however, such notice shall not be sent until Landlord has completed those items set forth on Exhibit "D-45" attached hereto, and if such items are not complete, then said notice shall be ineffective. Such notice shall set forth the date of delivery of possession, which shall be on a Monday (unless such date is a legal holiday, in which case possession shall be delivered the next business day). Additionally, as a condition precedent to the delivery of possession of the Leased Premises to Tenant, Landlord shall send written notice to Tenant which shall be certified by Landlord's architect, at least fourteen (14) but not more than twenty- one (21) days prior to the date of delivery of possession which notice shall confirm the date that possession shall be delivered and that the Leased Premises is Substantially Complete and ready for occupancy. In the event Landlord shall fail to deliver possession of the Leased Premises on the date set forth in such notice, Tenant may hold Landlord liable for any direct additional expenses incurred by Tenant as a result of such failure. If possession is not delivered by October 1, 2013, Tenant, in addition to Tenant's remedies at law, equity or under this Lease, may terminate this Lease by notice to Landlord. Notwithstanding the foregoing, upon the occurrence of the Possession Date, Tenant expressly waives such foregoing right of termination, but in no manner waives such obligation or requirement. The Leased Premises upon delivery shall (1) be in good condition and repair; (2) be free of Hazardous Substances (as defined below) whether or not disclosed by the study and report referred to in Article 4(b) below; (3) shall fully comply with all lawful requirements (including, without limitation, the Americans With Disabilities Act, 42 U.S.C. Section 12101 et seq. ("ADA"); all state, county and municipal laws, ordinances, rules and regulations pertaining to the accommodation of disabled persons; all zoning laws and ordinances; and all building, fire, health and safety codes) with all necessary inspections having been completed in accordance with applicable laws; and (4) shall be constructed in accordance with Article 5 hereof. Tenant shall have the right, without being deemed to have accepted possession, to enter upon the Leased Premises as soon hereafter as practical to take measurements, and to deliver and install its exterior signs (including, but not limited to, the installation of permanent and temporary signs), and freezer and cooler boxes, but such entry (or the opening for business) shall not constitute a waiver as to the condition of the Leased Premises or as to any work to be done or changes to be made by Landlord, or as to any other obligations of Landlord hereunder. Landlord shall secure from the appropriate governmental authority and provide to Tenant prior to delivery of possession of the Leased Premises, a Certificate of Occupancy (or a Temporary Certificate of Occupancy permitting occupancy pending the issuance of a Certificate of Occupancy in which event the delivery to Tenant of a Certificate of Occupancy shall be deemed a condition subsequent). 5 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 The term "Substantially Complete," as used herein, shall be defined to mean Landlord's delivery of possession of the Leased Premises to Tenant with the following conditions fully performed, satisfied and complied with: (i) Landlord's construction shall have been fully completed in accordance with the requirements of the Plans approved by Tenant and Tenant's Criteria (as defined in Article 5(a)), subject to only minor punchlist items which in Tenant's good faith determination shall not interfere with Tenant's ability to fixture and merchandise the Leased Premises upon acceptance or to conduct its business therein in accordance with Tenant's business practice; (ii) a certificate from Landlord's architect or engineers supervising the construction (in form and substance reasonably acceptable to Tenant) shall be delivered to Tenant certifying that all construction work has been performed in accordance with ADA requirements and the Plans approved by Tenant and Tenant's Criteria; (iii) a final Certificate of Occupancy (or a Temporary Certificate of Occupancy permitting occupancy pending the issuance of the final Certificate of Occupancy) or officially certified copies thereof issued by the governmental department(s) having jurisdiction over the Leased Premises shall have been issued and delivered to Tenant; (iv) all access and public roads and easements necessary for ingress and egress to and from the Leased Premises (as shown on Exhibit "A" and more particularly described in Article 7 hereof) shall have been completed, open and available for use and water and other utilities shall have been connected to, and are available to the Leased Premises; and (v) all conditions and obligations of Landlord under this Lease to be then performed by Landlord have been completed and satisfied (including but not limited to Landlord's obligations under Article 18 hereof). Landlord and Tenant agree that Tenant shall be obligated to accept possession of the Leased Premises after performance by Landlord of each of Landlord's prepossession obligations under this Lease, subject to the timing and notice requirements set forth in Article 4(a). (ii) In the event that there are Punchlist Items (hereinafter defined) as of the date of delivery of possession of the Leased Premises to Tenant, Landlord shall promptly and properly complete the same, and Tenant shall have the rights and remedies set forth in Article 3(b)(iii) in the event that Landlord fails to do so. For purposes hereof "Punchlist Items" shall be defined as those incomplete items which, in Tenant's determination do not materially interfere with Tenant's ability to fixture and merchandise the Leased Premises or open or occupy the same for Tenant's business in accordance with Tenant's customary business practices. None of the items listed on Exhibit "D-1 O" or "D-45" shall be considered punch list items and all of the same must be satisfactorily completed prior to the date of delivery of possession of the Leased Premises to Tenant. Tenant shall provide Landlord with a written statement of Punchlist Items (a "Punchlist Notice") no later than sixty (60) days after the Possession Date. (iii) As of the date of this Lease, Landlord, after due inquiry, warrants and represents to Tenant as follows: (1) that Landlord has no knowledge of any pending, threatened, or planned condemnation action or eminent domain proceeding which will affect the Leased Premises; (2) that Landlord has no knowledge of any pending, threatened, or planned modification to any public roadway adjacent to the Leased Premises or to any access point to or from the Leased Premises from or to said public roadways; and (3) that Landlord has no knowledge of any pending, threatened or planned modification to, or elimination of any traffic signal serving the roadways adjacent to the Leased Premises and located within 500 feet of any boundary of the Leased Premises. Simultaneously with Landlord's first delivery of possession notice sent pursuant to Article 4(a) of the Lease, Landlord shall disclose any information then known to Landlord that modifies the above warranties or representations or, in the absence of such disclosure, the above warranties and representations shall conclusively be deemed to have been restated. If Landlord, prior to the Possession Date, becomes aware of: (I) any pending, threatened, or planned condemnation action or eminent domain proceeding which will affect the Leased Premises; (II) any pending, threatened, or planned modification to any public roadway adjacent to the Leased Premises or to any access point to or from the Leased Premises from or to said public roadways; and/or (111) any pending, threatened or planned modification to, or elimination of any traffic signal serving the roadways adjacent to the Leased Premises and located within 500 feet of any boundary of the Leased Premises, then Landlord shall disclose the same to Tenant and provide Tenant all available relevant documentation and information, prior to the Possession Date. In the event that, prior to the Possession 6 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 Date, there is any pending, threatened, or planned condemnation, taking, modification or elimination as above-described, if, in the opinion of Tenant, reasonably exercised, the remainder of the Leased Premises and/or the access points or public roadways adjacent thereto and/or the traffic signals located with 500 feet of any boundary of the Leased Premises of, and serving those roadways adjacent to the Leased Premises would be no longer suitable for Tenant's business, then this Lease, at Tenant's option, to be exercised by notice to Landlord, shall terminate. Tenant's termination right shall not be its exclusive remedy if any above described condemnation, taking, or modification occurs after the Possession Date. If Tenant discovers, after the Possession Date, that Landlord violated the above warranty(ies) or representation(s) or that Landlord did not disclose a change in the same that Landlord had knowledge of prior to the Possession Date, Tenant shall have the right to seek any remedy available to it. (b) (i) (A) Landlord represents that it has no knowledge concerning any current or previous use of the Leased Premises which would lead a reasonable person to suspect that Hazardous Substances (as defined below) were deposited, stored, released, disposed of or placed upon, about or under the Leased Premises. In order to make the foregoing representation, Landlord states that it has made due inquiry or investigation as appropriate. Landlord shall provide Tenant, at Landlord's sole cost and expense, a study and report in accordance with American Society For Testing and Materials Standard Practice for Environmental Site Assessment Process, E1527-05 or current edition if later version has been published as of this date (the "Phase I Report"), and if indicated or if otherwise required by Tenant (in Tenant's sole discretion), a Phase II Assessment (the "Phase II Report") performed by Apex Company, URS Corporation, or Arcadis ("Environmental Consultant") electronically delivered to environmental.reportinq@walgreens.com, determining the presence of any Hazardous Substances located in, on or under the Leased Premises. If Landlord demolishes or rehabilitates any existing structure on the Leased Premises in the course of its construction of the Leased Premises, Landlord shall also deliver to Tenant a comprehensive asbestos survey (the "Asbestos Report") performed by Environmental Consultant. The Asbestos Report shall include copies of all manifests for disposal of asbestos containing material. In no event shall Tenant be named or referenced as an owner on said manifests. The Asbestos Report, together with the Phase I Report and Phase II Report, if applicable, shall hereinafter be collectively referred to as the "Environmental Report." The Environmental Report shall be certified in writing to Tenant and shall be delivered to Tenant within forty-five (45) days after the date of execution of this Lease. The certification of the Environmental Report by the Environmental Consultant shall be in form and substance acceptable to Tenant; without limiting the foregoing, limitations of liability in favor of the Environmental Consultant for negligent performance, shall not be acceptable to Tenant. In the event the Environmental Report discloses the existence of any Hazardous Substances in, on or under the Leased Premises (or in the event any Hazardous Substances are otherwise discovered), Landlord, at Landlord's sole cost and expense, prior to the date Landlord delivers possession of the Leased Premises to Tenant, as provided in Article 4, shall properly remove and dispose of any such Hazardous Substances and remediate the Leased Premises. (B) Any such disposal, removal and remediation required pursuant to this Article 4(b) shall be conducted in accordance with all applicable Environmental Laws (and with respect to any monitoring wells and/or other equipment which are part of Landlord's remediation efforts under this Article, such wells and/or equipment shall not be located within or under the Building, the drive-through or any of Tenant's proposed signage, or impede access to and from the Leased Premises, and furthermore, to the extent any monitoring wells and other equipment not installed or caused to be installed by Landlord hereunder exist within the Leased Premises as a result of Landlord's predecessor's environmental remediation efforts, Landlord shall cause such wells and/or equipment to be relocated to the extent they are located within or under the Building, drive-through or Tenant's proposed signage, or impede access to and from the Leased Premises). In the event of any such removal, disposal or remediation by Landlord hereunder, upon completion of the same the Leased Premises shall again be tested by Environmental Consultant, and the results delivered and re- certified to Tenant; in such event, Landlord shall also deliver evidence of necessary 7 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 governmental inspections and approvals with respect to such removal, disposal and remediation, and any final environmental closure documentation (i.e. a no further action letter). The Leased Premises shall not be Substantially Complete until, and Tenant shall have no obligation to accept delivery of possession of the Leased Premises until Landlord has complied with the provisions of this Article 4(b); provided, however, that Tenant may, at Tenant's option, accept possession of the Leased Premises prior to the completion of remediation if Landlord provides Tenant with the final remediation plans and Tenant determines that the effectuation of said remediation will not adversely impact Tenant's full use and enjoyment of the Leased Premises. (ii) "Hazardous Substances" shall mean any hazardous or toxic chemical, waste, byproduct, pollutant, contaminant, compound, product or substance, including, without limitation, asbestos, polychlorinated biphenyls, petroleum (including crude oil or any fraction or by-product thereof), underground storage tanks, and any material the exposure to, or manufacture, possession, presence, use, generation, storage, transportation, treatment, release, disposal, abatement, cleanup, removal, remediation or handling of which is prohibited, controlled or regulated by any Environmental Law. (iii) "Environmental Law" shall mean any federal, state, regional, county or local governmental statute, law, regulation, ordinance, order or code or any consent decree, judgment, permit, license, code, covenant, deed restriction, common law, or other requirement presently in effect or hereafter created, issued or adopted, pertaining to protection of the environment, health or safety of persons, natural resources, conservation, wildlife, waste management, and pollution (including, without limitation, regulation of releases and disposals to air, land, water and ground water), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. 9601 et seq., Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and Solid and Hazardous Waste Amendments of 1984, 42 U.S.C. 6901 et seq., Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33 U.S.C. 1251 et seq., Clean Air Act of 1966, as amended, 42 U.S.C. 7401 et seq., Toxic Substances Control Act of 1976, 15 U.S.C. 2601 et seq., Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. 651 et seq., Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. 11001 et seq., National Environmental Policy Act of 1975, 42 U.S.C. 300(f) et seq., and all amendments as well as any similar state or local statute or code and replacements of any of the same and rules, regulations, guidance documents and publications promulgated thereunder. (c) It shall be a condition precedent to the delivery of possession of the Leased Premises to Tenant that Landlord shall have first delivered to Tenant not later than sixty (60) days prior to the date for delivery of possession as described in Article 4(a), satisfactory evidence of Landlord's title together with each instrument, if any, required by Article 18(b). Tenant's acceptance of possession of the Leased Premises in the absence of full satisfaction of said condition precedent shall in no manner be deemed a waiver thereof or of any of the requirements of Article 18. (d) Notwithstanding anything contained in this Lease to the contrary, Tenant's acceptance of physical possession of the Leased Premises in the absence of Substantial Completion, or otherwise in the absence of full satisfaction of any condition precedent to such acceptance as such conditions are provided in Articles 4, 5, 6, 7, 11 or 18, or as otherwise provided in this Lease shall in no manner be deemed a waiver of any such requirements. (e) Landlord shall, prior to the delivery of possession of the Leased Premises to Tenant, cause Landlord's civil engineer or licensed surveyor to certify to Tenant the square foot floor area contained in said Building. (f) As of the date of this Lease, Landlord, after due inquiry, warrants and represents to Tenant that Landlord has not entered into and Landlord does not hereafter, without Tenant' express prior written consent, propose or intend to enter into, any tax-increment funded agreement or other similar agreement with the City of Avon or other applicable governmental entity which has or which would have the effect of 8 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 subsidizing Landlord's costs of developing the Leased Premises hereunder or otherwise reduce Landlord's Leased Premises acquisition and/or development costs (for purposes of this section, a "TIF"). Prior to Landlord's first delivery of possession notice sent pursuant to Article 4(a) of the Lease, Landlord shall disclose any information then known to Landlord that modifies the above warranties or representations or, in the absence of such disclosure, the above warranties and representations shall conclusively be deemed to have been then restated. If Landlord, whether prior to the Possession Date or at any time hereafter during the Term should becomes aware of any pending, proposed or planned TIF, then Landlord shall immediately disclose the same to Tenant, and provide Tenant all available relevant documentation and information, and also provide to Tenant the proposed form of TIF for Tenant's review and comment, and thereafter shall update Tenant with any changes proposed thereto. In no event shall any TIF imposed upon or hereafter encumbering the Leased Premises be executed without Tenant's express written approval. It shall be an express condition of any such TIF that to the extent Landlord's costs in acquiring fee simple title to the Leased Premises and/or Landlord's costs in developing the Leased Premises are to be subsidized, then either (a) the fixed rent payable by Tenant shall be reduced, in an amount agreeable to Landlord and Tenant (and using the same factors used in calculation of such rent initially, including, without limitation, return on investment and term of amortization), which amount shall be equitably proportional to such subsidy, or (b) the total value of such subsidy to Landlord shall be paid, in its entirety, and in one lump sum, to Tenant within thirty (30) days of Landlord's receipt thereof (or in the event that such subsidy is to be received by Landlord in installments, then Landlord shall forward each such installment to Tenant within thirty (30) days of Landlord's receipt thereof). If at any time Tenant discovers that Landlord violated the above warranty(ies) or representation(s) above, or otherwise violated the provisions of this Section, Tenant shall have the right to seek any remedy available to it under this Lease or at law or in equity. The warranties, representations set forth in this Section, and also Landlord's refund obligations owed to Tenant hereinabove shall survive any expiration or earlier termination of this Lease. CONSTRUCTION BY LANDLORD 5. (a) Before delivering possession of the Leased Premises to Tenant, Landlord shall obtain all required zoning and permits (other than Tenant's business licenses) for the construction and operation of the Leased Premises. If a conditional use permit, special use permit, PUD or other similar approval/variance requiring the review and sanction of an applicable governmental authority is required in order for Landlord to construct the Leased Premises in accordance with this Lease, and to procure the necessary zoning and permits required herein (including, but not limited to, such permits and approvals which Landlord is required to procure pursuant to Articles 5(k) and 5(1) hereinbelow), the form of such conditional use permit, approval or other such document(s), and in particular any covenants and conditions set forth therein, must be pre-approved by Tenant, in writing, and shall not, in any event, impair or restrict Tenant's ability to operate its business for any lawful purpose or to assign or sublet any portion of the Leased Premises under Article 13 hereinbelow. Landlord shall promptly notify Tenant, in writing, of the issuance/granting of such final conditional use permit, special use permit, PUD or other similar approval/variance when issued by the applicable governmental authority in such form as pre-approved by Tenant, and shall provide Tenant with a copy of the same. Such zoning shall not prohibit the operation of a 24-hour store, the sale of beer or wine or alcoholic beverages or the operation of an in-store health clinic. In addition, throughout the Term, Landlord shall cooperate with Tenant in securing any necessary permits and approvals required for the operation of Tenant's business, if any. The Building shall be of such exterior and structural design and character as is acceptable to Tenant and as will also meet Tenant's requirements for its permanent exterior signs, which may extend above the Building and shall be at locations and of a size acceptable to Tenant. The landscaping on the Leased Premises shall be of a design acceptable to Tenant and shall be designed in such a way to allow for the unobscured visibility of the Building, Tenant's signage and the Leased Premises. This Lease is expressly conditioned upon Landlord obtaining any and all permits and government approval required for a landscaping plan as approved by Tenant and 9 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 designed as substantially shown on Exhibit "H", the Landscape Plans. If Landlord is unable to obtain all such permits and approvals, Tenant may cancel this Lease and upon such cancellation both parties shall be relieved of all liability to the other under this Lease. The Leased Premises and Building shall be erected and completed by Landlord, in accordance with the plans and specifications described below, and shall contain Tenant's specific requirements for the operation of Tenant's business, which requirements will include, among other things, the items and installations listed in the Walgreens criteria specifications dated April 2010 the ("Specifications") and criteria drawings dated April 2010 (the "Drawings") as referenced on Exhibit "C" attached hereto, heretofore delivered to Landlord and incorporated herein by reference and made a part hereof. The Specifications and Drawings are hereinafter collectively referred to as "Tenant's Criteria". All such work by Landlord shall be done by contractors selected by Landlord and acceptable to Tenant (and in any event compliant with the applicable requirements of Article 5(k) hereinbelow). Landlord shall submit a list to Tenant (Attn.: Construction Department) of its contractors and subcontractors for Tenant's review and reasonable approval. Such work shall comply with the requirements of public authorities, and shall be done in a first-class, good, and workmanlike manner, free and clear of all liens and encumbrances for labor and materials furnished to Landlord. The Leased Premises shall contain no grade elevation changes in excess of five percent (5%); there shall be no steps or ramps (excepting ramps to serve the handicapped) in any exterior portion of the Leased Premises. Landlord shall secure the manufacturer's warranties as required by Tenant's Criteria described above and shall assign to Tenant each such warranty that pertains to any item or component thereof which Tenant is responsible to maintain or repair under this Lease. (b) (i) Within one (1) month after the execution and delivery of this Lease, Tenant shall furnish a fixture plan for the Building to the Landlord, so that the Landlord may prepare and furnish to Tenant plans and specifications covering Tenant's specific requirements. Paper copies of the plans and specifications (collectively the "Plans") prepared by Landlord shall be furnished to Tenant for Tenant's approval within ninety (90) days after the execution and delivery of this Lease or the receipt of the fixture plan from Tenant, whichever is later. All areas of design and engineering must be certified by and under the direct supervision of architects and engineers licensed and registered in the State in which the Leased Premises is located. Tenant agrees to review said Plans within forty-five (45) days of Tenant's receipt thereof and, if not approved or rejected within said period, said Plans shall be deemed approved. In the event Tenant shall reject such Plans within the period provided above, Tenant shall return said Plans to Landlord stamped "Not Approved" indicating the items so rejected. Landlord shall then have thirty (30) days to resubmit the Plans to Tenant, and Tenant shall have thirty (30) days after resubmittal to approve or reject the same. If not approved or rejected within said period, said Plans shall be deemed approved; provided, however, that in no event shall the standards of quality of approved Plans, or of those deemed approved hereunder, be less than those required by Tenant's Criteria, which shall control. If said Plans are rejected after being resubmitted to Tenant, either party may cancel this Lease. (ii) If local statute, ordinance, rule or regulation prohibits or requires modifications to Tenant's sign drawings or any other element of the Plans, Landlord or its architect shall (i) so advise Tenant, (ii) revise the Plans as necessary to comply with governmental requirements, and (iii) submit the revised Plans to Tenant for its review and approval. (iii) After approval of Plans, Tenant, at Tenant's sole cost and expense, shall have the right to make changes, substitutions and eliminations in said Plans provided, however, that, upon delivery of possession of the Leased Premises, Tenant shall pay all costs and expenses incurred by Landlord on account of any such changes, substitutions and eliminations. Tenant shall be entitled to a credit for any cost savings associated with such change, substitution or elimination. In addition, if Tenant's credits are in excess of the cost of any such changes, substitutions or eliminations requested by Tenant (or if Tenant is entitled to a credit and Landlord has incurred no additional costs due to changes, substitutions or eliminations in said Plans requested by Tenant), then upon delivery of possession, Landlord shall remit payment to Tenant as a result of such credits. As a condition precedent to Tenant's obligation to remit payment to 10 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 Landlord for such costs and expenses, Landlord shall furnish Tenant detailed documentation indicating such cost and expenses. The failure of Landlord to furnish such request and documentation within six (6) months of the Possession Date shall be deemed a waiver by Landlord of Landlord's right to demand payment by Tenant. (c) Upon delivery of possession of the Leased Premises, Landlord shall provide a set of as-built files on compact disk including Plans in AutoCAD 2004.dwg format, a full set of photographs (minimum 40) in .jpg format including exterior, site work, interior and roof, and a drawing submittal form. (d) All Plans may be used and reused by Tenant regardless of by whom prepared; Landlord shall obtain a license from the design professional who prepared said Plans granting Tenant the unrestricted right to use all or portions of the Plans, provided that all reference to the said design professionals and their practices is removed from subsequently altered Plans. Such Plans may be used by Tenant in their approved form or as modified by Tenant in connection with any alteration or renovation of the Leased Premises. Landlord may use the Plans only in connection with a Walgreen store. (e) Prior to delivery of possession, Landlord's architect or structural engineer, as the case may be, shall certify to Tenant (in form and substance reasonably acceptable to Tenant) that (i) the Leased Premises had been constructed in conformity with the Plans and in full compliance with all approvals and applicable building codes, including without limitation, the ADA and any other state, county and municipal laws, ordinances, rules and regulations pertaining to the accommodation of disabled persons; (ii) the Building and parking areas have been located as shown on the Site Plan; and (iii) the Leased Premises and all equipment and materials installed thereon contain no asbestos containing materials; and (iv) the structural design of the Building has been completed in conformance with the recommendations of the geotechnical report prepared for the Leased Premises. (f) This Lease is expressly conditioned upon Landlord obtaining any and all permits and governmental approvals (excluding Tenant's business licenses) required for the installation and operation of a single lane drive-through window with a canopy on the Leased Premises in accordance with the Plans approved by Landlord and Tenant under Article 5(b), and that no restrictions on the use of said drive through facility shall be imposed or required pursuant to said permits and governmental approvals. If Landlord is unable to obtain all such permits and approvals for the installation and operation of a single lane drive-through window with a canopy on the Leased Premises in accordance with the final Plans, or if restrictions on the use of said drive through facility shall be imposed or required pursuant to said permits and governmental approvals, and the same are unacceptable to Tenant in Tenant's good faith determination, then and in such event(s), Tenant may cancel this Lease and upon such cancellation both parties shall be relieved of all liability to the other under this Lease. Notwithstanding the foregoing, upon the occurrence of the Possession Date, Tenant expressly waives such foregoing right of termination, but in no manner waives such obligation or requirement. (g) All utility lines passing to, from and across the Leased Premises should be buried in accordance with Tenant's Criteria referred to in Article 5(a) above prior to the Possession Date. Should a survey or title commitment reveal any utility lines (including overhead or above-ground lines) or utility poles, light poles, easements, rights of way or setback lines that must be released or relocated hereunder and/or in order for Landlord to construct the Leased Premises or for Tenant to be able to operate its business thereon and/or if such survey or title commitment should reveal any such utility lines (including overhead or above-ground Jines) or utility poles, light poles, easements, rights of way or setbacks not otherwise required to be released or relocated hereunder that, if not relocated, would result in an impairment in access to and from the Leased Premises or an impairment of visibility of the Building or of Tenant's signage installed hereunder upon the Building or the Leased Premises, then it shall be an express condition of this Lease that such utility easements or lines, utility poles, light poles, easements, rights of way or setback lines be released or relocated in a manner reasonably acceptable to Tenant. Landlord shall provide to Tenant copies of all documents relative thereto, and 11 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 Tenant shall have no obligation to accept delivery of possession of the Leased Premises until Landlord shall have complied with the provisions of this Article 5(g). (h) (i) Landlord shall notify Tenant (Attn.: Project Manager, Construction Dept.) prior to the commencement of construction. In addition, upon notice to Landlord, Tenant may, from time to time, and at any time prior to the Possession Date, enter upon the Leased Premises for the purpose of inspecting any of the work required to be completed by Landlord hereunder. The foregoing notwithstanding, Tenant shall have the right to make the following inspections (the "Required Inspections"): (A) Pre-Slab Inspection: The Pre Slab Inspection shall occur (a) after Landlord has completed the digging of the foundation and all of the underground plumbing and electrical rough required by the Plans and/or Tenant's Criteria including all wastes, drains, drain tile and water and sewer work, if any required thereby and (b) prior to pouring the concrete slab and the completion of any soil compaction or backfill work. (B) Rough Inspection: The Rough Inspection shall occur (a) after Landlord has completed all interior plumbing and electrical rough; and (b) prior to the installation of any insulation or drywall. (C) Roof Inspections: The Roof Inspections shall occur (a) prior to the initial application of the roofing materials; and (b) prior to installation of the coping. (ii) Landlord shall send written notice to Tenant, Attn.: Project Manager, Construction Dept., with a copy to Tenant's field superintendent, at least seven (7) days and not more than fourteen (14) days prior to the date that the work is ready for inspection. Such notice shall set forth the date that all such work is to be completed (the "Anticipated Completion Date"). Tenant shall have the right to inspect the work on the Anticipated Completion Date or such other date as the parties hereto shall agree. In the event that Tenant shall fail to inspect the work on the Anticipated Completion Date (or on such other date as the parties hereto had otherwise agreed) and provided further that any extension of such date would result in a delay in the construction of the Leased Premises, then the right of Tenant to perform such Required Inspection hereunder shall be waived and Landlord shall have the right to continue construction of the Leased Premises as if such Required Inspection had been performed. Any waiver of a Required Inspection shall not be construed so as to waive (a) Tenant's right to any other Required Inspection hereunder; or (b) any of Landlord's obligations under this Lease (including but not limited to Landlord's obligation to correct defects or nonconforming aspects of the work). (iii) In the event that a Required Inspection reveals any defective work or work which is not in conformance with the Plans, then Landlord shall, at Landlord's sole cost and expense, and within ten (10) days following such Required Inspection correct all such work to the satisfaction of Tenant, and Landlord shall reimburse Tenant for any costs incurred by Tenant in connection with such Required Inspection, including, without limitation, the cost of any independent testing or inspection performed by or on behalf of Tenant and any re-inspection of the Leased Premises as a result thereof. Any entry upon the Leased Premises by Tenant or Tenant's failure to identify a defect in construction during any Required Inspection, shall not waive any of Landlord's obligations under this Lease (including but not limited to Landlord's obligation to correct defects or nonconforming aspects of the work). Each Required Inspection is for the sole benefit of Tenant and shall not be relied upon by any other party. Nothing herein contained shall be construed as a waiver of or limitation on any additional rights of Tenant hereunder. (i) Landlord warrants that (a) as of the Possession Date, the Leased Premises as constructed shall be structurally sound, well built and fit for Tenant's intended use; and (b) as of the Possession Date, the Leased Premises shall be constructed in accordance with applicable law and the Plans. The foregoing warranties shall terminate one (1) year after the Possession Date, except that such warranties shall survive as provided by applicable law as to defective conditions (including without limitation conditions which do not comply with the Plans or applicable law) which could not be discovered by Tenant in the exercise of reasonable care within one (1) year after the Possession Date. Tenant may elect to inspect the Leased Premises within one (1) 12 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 year after the Possession Date. In such event, Tenant shall notify Landlord of any deficiency that requires repair and/or replacement. Landlord, at Landlord's sole cost and expense, and within thirty (30) days following receipt of notice from Tenant, shall correct such deficiency to Tenant's satisfaction. 0) Landlord certifies to Tenant that: (i) Landlord is in full compliance with the immigration laws of the United States relating to Landlord's employees assigned by Landlord to perform services for Tenant hereunder; (ii) all of Landlord's employees are authorized by law to work in the United States and Landlord's employees have presented documentation to Landlord that establishes both identity and work authorization in accordance with applicable immigration regulations (and to the best of Landlord's knowledge, information and belief, the documentation presented to Landlord is genuine and accurate); and (iii) Landlord complies with all federal, state and local labor and employment laws, and wage and hour laws, as these laws may relate to Landlord's employees performing services for Tenant (collectively the laws referenced in this Paragraph shall be referred to as the "Immigration and Employment Laws"). After the date hereof, Landlord shall fully comply with all Immigration and Employment Laws in connection with Landlord's performance of services for Tenant hereunder. As of the date of delivery of possession of the Leased Premises, Landlord shall be deemed to have certified to Tenant that Landlord has complied with the Immigration and Employment Laws during the period of time from the date of this Lease through and including the date of delivery of possession of the Leased Premises to Tenant. In addition, Landlord shall require, in Landlord's contract(s) with its general contractor(s) that each such general contractor: (w) make the same certifications to Landlord as set forth in this Paragraph above; (x) make the covenants contained herein pertaining to compliance with the Immigration and Employment Laws during the course of performance of such general contractor's work; (y) reaffirm, as of the date of completion of all work to be performed by such general contractor, that such general contractor has complied with the Immigration and Employment Laws during the course of the performance of such general contractor's work; and (z) require, in such general contractor's contracts with its subcontractors, that each such subcontractor make such same certifications and covenants to the general contractor as set forth in (w), (x), and (y) above. (k) This Lease is expressly conditioned upon Landlord obtaining any and all permits and governmental approvals (excluding Tenant's business licenses) required for the sale of alconolic beverages, beer and wine at the Leased Premises, and that no restrictions on the sale of alcoholic beverages, beer or wine shall be imposed or required pursuant to said permits and governmental approvals. If Landlord is unable to obtain all such permits and approvals for the sale of alcoholic beverages, beer or wine, or if restrictions on the sale of alcoholic beverages, beer or wine]shall be imposed or required pursuant to said permits and governmental approvals, and the same are unacceptable to Tenant in Tenant's good faith determination, then and in such event(s), Tenant may cancel this Lease and upon such cancellation both parties shall be relieved of all liability to the other under this Lease. Notwithstanding the foregoing, upon the occurrence of the Possession Date, Tenant expressly waives such foregoing right of termination, but in no manner waives such obligation or requirement. (I) This Lease is expressly conditioned upon Landlord obtaining any and all permits and governmental approvals (excluding Tenant's business licenses) required for the construction and operation of an in-store health clinic on the Leased Premises in accordance with the Plans approved by Landlord and Tenant under Article 5(b), and that no restrictions on the use of said in-store health clinic shall be imposed or required pursuant to said permits and governmental approvals. If Landlord is unable to obtain all such permits and approvals for the construction and operation of an in-store health clinic on the Leased Premises in accordance with the final Plans, or if restrictions on the use of said in-store health clinic shall be imposed or required pursuant to said permits and governmental approvals, and the same are unacceptable to Tenant in Tenant's good faith determination, then and in such event(s), Tenant may cancel this Lease and upon such cancellation both parties shall be relieved of all liability to the other under this Lease. Notwithstanding the foregoing, upon the occurrence of the Possession Date, Tenant expressly waives such foregoing right of termination, but in no manner waives such obligation or requirement. 13 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 (m) Landlord agrees that, in doing the work required in this Article 5, Landlord shall solicit bids from an equal number of union and non-union contractors; and when a union contractor's bid is competitive, Landlord shall make commercially reasonable efforts to award the work to the union bidder. However, if after commercially reasonable efforts to award the work to the union contractor, a non-union contractor is selected, such non-union contractor must be a "responsible employer," as defined below. Landlord and Tenant understand that the term "competitive" does not necessarily mean the lowest bidder, but includes other factors such as experience with Tenant's projects and quality of work. Landlord shall provide Tenant with all documentation demonstrating compliance with the terms of this provision upon request. A "responsible employer'' is an employer who offers a legitimate health insurance plan for its employees and their families; provides workers' compensation insurance for its employees; and does not misclassify its employees as "independent contractors." A "legitimate health insurance plan" shall be interpreted to mean a plan that is offered by an organization licensed by the appropriate state and offers benefits at a cost to an employee that is less than the employee would have to pay for comparable benefits on their own. It is understood that a "legitimate health insurance plan "does not include a "high deductible health plan," as such term is defined by the U.S. Internal Revenue Code. A responsible employer shall pay at least 60% of the premium costs of the health insurance plan it offers and such plan shall be effective on or before the date an employee's work on the project begins and shall continue through the employee's last day of employment on the project. (n) Notwithstanding anything contained in this Lease to the contrary, in no event shall Tenant be obligated to accept delivery of possession of the Leased Premises until all of the driveways and access points from the Leased Premises to and from the roadways adjacent thereto ("Driveways") are completed as indicated on the Site Plan, and are structurally sound, well built and fit for Tenant's intended use, but if Tenant should elect to accept possession prior to such completion of all such Driveways, then all fixed rent payable by Tenant, and the accrual of any percentage rent under Articles 2(a) and 2(b), respectively, hereinabove shall abate until either the later of either the completion of such Driveways or upon Tenant opening its store for business (if at all), if and to the extent such opening was delayed due to the incompletion of any of the Driveways. All such Driveways shall be paved with heavy- duty paving and lit (during Tenant's business hours, and for one hour after, unless otherwise indicated herein) if and to the extent indicated in, and in accordance with, the Plans and Tenant's Criteria. TRAFFIC SIGNAL CONDITION Intentionally Omitted. PARKING 7. Landlord, at Landlord's cost and expense, shall repair and replace (but shall not be obligated to maintain, which shall be Tenant's responsibility) the parking areas of the Leased Premises for one (1) year after the Possession Date. Subject to the immediately preceding sentence, Tenant, at Tenant's cost and expense, shall maintain, repair and replace the parking areas of the Leased Premises. However, Tenant shall have no obligation to perform nor pay any costs in connection with the following: (i) any damages caused by the acts or omissions of Landlord; and (ii) any defects in the construction of the Leased Premises by Landlord. The foregoing items (i) and (ii) shall remain Landlord's responsibility to perform. The parking areas of the Leased Premises shall be for the exclusive use of Tenant and Tenant's customers, employees, invitees, successors, assigns and sublessees. EXCLUSIVES 8. (a) Landlord covenants and agrees that, during the Term and any extensions or renewals thereof, no additional property which Landlord, directly or indirectly, may now or hereafter own, lease or control, and which is contiguous to, or which is within feet of any boundary of, the Leased Premises (the "Landlord's Property"), will be used for any one or combination of the following: 14 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 In the event that Tenant files suit against any party to enforce the foregoing restrictions, Landlord agrees to cooperate fully with Tenant in the prosecution of any such suit, and reimburse Tenant for all of the attorneys' fees and court costs incurred by Tenant in connection with such suit, notwithstanding its resolution. For purposes hereof "contiguous" shall mean property that is either adjoining the Leased Premises or separated from the Leased Premises only by a public or private street, alley or right-of-way. (b) In addition, Landlord shall not permit or suffer any other occupant of Landlord's Property to use any premises or any portion thereof for purposes of a (c) In the event that any action, claim or suit is brought by any party against Tenant alleging that Tenant's operations on the Leased Premises are in violation of any use restriction contained in any instrument, Landlord shall defend (by counsel reasonably satisfactory to Tenant), indemnify and hold Tenant harmless from any damages, loss, or cost (including, without limitation, attorneys' fees and costs) suffered by Tenant thereby, or from the enforcement of said restriction against Tenant. No encumbrance, lien, or restriction recorded against or otherwise imposed upon the Leased Premises shall be binding upon or otherwise enforceable against Tenant or its successors and assigns unless Tenant has expressly and in writing, consented to said recordation or imposition; any such purported encumbrance, lien or restriction to which Tenant has not consented shall be void. The foregoing restriction against the imposition or recordation of other liens, encumbrances or restrictions shall be deemed a covenant running with the land in addition to any contractual obligation of Landlord. UTILITIES 9. Tenant shall pay when due all bills for water, sewer rents, sewer charges, heat, gas, phone and electricity used in the Building or on the Leased Premises from and after the Possession Date until the expiration of the Term. The source of supply and 15 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 vendor of each such commodity shall be the local public utility company or municipality commonly serving the area, provided that if more than one utility vendor serves the area Landlord shall cause the vendor selected by Tenant to serve the Leased Premises. Landlord shall initially furnish to the Building and to the Leased Premises sufficient gas and water service lines, sewer lines and sewer connections, all of the capacity specified by Tenant, and electric service lines of the voltage and amperage specified by Tenant, all connected to an adequate source of supply or disposal. In addition, Landlord shall furnish to the Building telephone lines of a capacity initially specified by Tenant. If Tenant shall require additional service line capacity of any of such utilities and if same are available on the Leased Premises, Tenant, at Tenant's expense, shall have the right to the use of the same. All utilities should be in Landlord's name prior to the Possession Date. Tenant shall place the utilities in its name from and after the Possession Date. Landlord shall be responsible for all utility bills for the period prior to the Possession Date. In the event the utility company requires that a prior bill be paid in order to establish service in Tenant's name, Tenant may pay such bill and Landlord shall reimburse Tenant the amount paid upon receipt of an invoice. If Landlord fails to so reimburse Tenant, Tenant may deduct the amount due from all sums due Landlord under this Lease. REPAIRS. CONFORMITY WITH THE LAW 10. (a) (i) Tenant, at Tenant's sole cost and expense, shall maintain the Leased Premises and make all necessary repairs and replacements, whether interior or exterior, to all parts of the same. In addition to Landlord's warranty obligations under Article 5(i) above, and notwithstanding the foregoing, Landlord, at Landlord's cost and expense, shall maintain, repair, and replace the structural elements of the Building (including the roof) and Leased Premises for one (1) year after the Possession Date. Upon delivery of possession of the Leased Premises to Tenant, Landlord shall cause all contractor's and manufacturer's warranties and guaranties relating to the Leased Premises or required by the Tenant's Criteria described in Article 5 (including, but not limited to the fifteen (15) year, labor and material, no dollar limit roof manufacturer warranty, the five (5) year owner and installer backed, roof installation warranty including all roof components [flashing, coping, scuppers, drains, curbs, awnings, etc.], and the two (2) year, owner and installer backed, paving warranty) to be assigned to Tenant, or to the extent not assignable, then to be issued in Tenant's name. (ii) In the event that any Hazardous Substance is discovered at any time in, under or about the Leased Premises or any part(s) thereof (unless introduced by Tenant), Landlord, at Landlord's expense, shall remove and dispose of the same in the manner described in and provide all documentation required by Article 4(b). If Landlord's work or removal under this Article 1 O(a)(ii) shall interfere with or disrupt the use or operations at the Leased Premises, then without limitation of Tenant's rights or remedies as a result thereof, the rent and other sums due by Tenant shall abate until the interference or disruption shall cease. Any remedial action plans required for Landlord's work or remediation under this Article 1 O(a)(ii) shall be subject to the prior express written consent of Tenant. Tenant's consent may be conditioned upon, among other things, determining that the required remediation plans will not interfere with Tenant's use or occupancy of the Leased Premises and that no liability or obligations shall be imposed upon or incurred by Tenant in connection therewith. Landlord hereby indemnifies, saves and holds Tenant harmless and shall defend Tenant from and against any claims, liability, obligation, damage, cost, expense, fines and penalties, including, without limitation, attorneys' fees and costs, resulting directly or indirectly from the presence, removal or disposal of any such Hazardous Substance not introduced by Tenant. In the event that any Hazardous Substance is discovered at any time in, under or about the Leased Premises which has been introduced by Tenant, Tenant shall, at Tenant's expense, remove and dispose of the same. Tenant hereby indemnifies, saves and holds Landlord harmless and shall defend Landlord from and against any claims, liability, obligation, damage, cost, expense, fines and penalties, including, without limitation, attorneys' fees and costs, resulting directly or indirectly from the presence, removal or disposal of any such Hazardous Substance introduced into the Leased Premises solely by Tenant. The foregoing indemnifications shall survive the termination or expiration of this Lease for any reason. 16 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 (b) If in an emergency situation, a repair to the Leased Premises and/or the Building, which Landlord is obligated to perform is required, Tenant shall make all reasonable efforts to contact Landlord or Landlord's managing agent by telephone and/or facsimile to advise Landlord of the need for the repair. If after making reasonable efforts to contact Landlord, either Tenant is unable to contact Landlord or Landlord's managing agent, or Tenant succeeds in contacting Landlord or Landlord's managing agent and Landlord fails to undertake action to correct the emergency situation within one business day, Tenant may perform the repair, in such manner as Tenant deems reasonably necessary, on account of Landlord. Upon completion of the repair, Landlord shall be required to reimburse Tenant for the actual cost of the repair. Landlord's payment shall be due within thirty (30) days after receipt of Tenant's bill accompanied by reasonable evidence that Tenant has paid for the repair. In the event Landlord fails to make payment to Tenant for said repair within said thirty (30) days, such failure shall be deemed a default under this Lease and Tenant shall have all remedies set forth in Article 17 and those available at law or in equity. For the purpose of this Section (b), an emergency situation means a condition or state of facts which if not corrected would result in further damage to the Leased Premises, the Building or its contents or which would impair Tenant from conducting its business at the Leased Premises in a reasonable manner. (c) Subject to Landlord's obligations under Article 5, Tenant shall make all changes and installations, and pay the cost, if any, of all inspections required to comply with the valid requirements of public authorities as they apply to the Leased Premises or the Building. SIGNS. TENANT'S FIXTURES 11. (a) Tenant may install and operate interior and exterior electric and other signs, and in so doing shall comply with all lawful requirements. Tenant shall have the right to install mechanical equipment, including solar panels and satellite dishes or other antennae for telecommunications affixed to the roof or other portions of the Building or other portions of the Leased Premises. Tenant may also install pay telephones, automatic teller machines and other electronic consumer service apparatus on the Leased Premises. (b) Tenant shall at all times have the right to remove all trade fixtures, equipment, appurtenances and other property furnished or installed by Tenant, or by Landlord at Tenant's expense directly billed to Tenant (but excluding trade fixtures, equipment and appurtenances indirectly billed to Tenant through rental payments as part of the overall cost of build-out under the Plans), it being expressly understood and agreed that said property shall not become part of the Building or Leased Premises but shall at all times be and remain the personal property of Tenant and shall not be subject to any Landlord's lien. Notwithstanding anything to the contrary herein, in no event shall Tenant be required to remove the electric conveyor from the Leased Premises at the expiration or earlier termination of this Lease. In no event shall fixtures such as electrical systems, HVAC systems, or plumbing systems, or similar items that under applicable law become or are part of the improved real estate, be removed by Tenant absent express written agreement to the contrary with the Landlord. (c) This Lease is expressly conditioned upon Landlord obtaining any and all permits (except construction permits) and governmental approvals required for the installation of a monument sign with electronic readerboard at the location shown on the Site Plan and per the Plans for Tenant's sole and exclusive use. Landlord warrants and represents that there are no limitations on the use of the electronic readerboard. If Landlord is unable to obtain all such permits and approvals, Tenant may cancel this Lease and upon such cancellation both parties shall be relieved of all liability to the other under this Lease. Notwithstanding the foregoing, upon the occurrence of the Possession Date, Tenant expressly waives such foregoing right of termination, but in no manner waives such obligation or requirement. Landlord shall, as soon as is possible after the date hereof, install a sign foundation with conduit (in accordance with the Plans) at the location shown on the Site Plan, upon which Tenant may install its readerboard and sign panel. Such monument sign shall be electrified by Landlord as soon as is practical. Tenant may install the same prior to the Possession Date and 17 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 such installation of said readerboard and sign panel shall be deemed neither acceptance of possession of the Leased Premises nor a waiver of any condition precedent to the delivery of possession of the Leased Premises. Additionally, Landlord shall obtain and all permits and governmental approvals required for the installation of three (3) scripts as shown Exhibit "I", the Building Elevations. Further, Landlord agrees to use its commercially reasonable efforts to obtain any and all permits and governmental approvals required for the installation of sign panels on the 1-70 highway informational signs. ALTERATIONS 12. (a) At any time and from time to time, Tenant, at Tenant's cost and expense, may make such structural and non-structural alterations and additions to the Leased Premises as Tenant desires, provided that any such alteration or addition when completed shall be of such character as not to diminish the structural integrity of the Building. Such work by Tenant shall be made in a good and workmanlike manner, employing materials of equal or better quality and specification as the materials used in the original construction of the Building. Title to any alterations or additions made by Tenant shall vest in Landlord, and Tenant shall deliver such documents of conveyance thereof as Landlord may reasonably request at the expiration or sooner termination of this Lease. Landlord shall cooperate at no out of pocket cost to Landlord in securing necessary permits and approvals. Tenant shall not permit any mechanics' or other liens to stand against the Leased Premises for work or material furnished Tenant. (b) Landlord covenants and agrees that Landlord shall not make any alterations or additions to the Leased Premises without Tenant's written consent. Landlord shall not permit any mechanics' or other liens to stand against the Leased Premises for work or material furnished to Landlord. ASSIGNMENT AND SUBLETTING 13. (a) At any time and from time to time, Tenant may discontinue the operation of its business (if any) in the Leased Premises or Building. (b) At any time and from time to time, Tenant's interest under this Lease may, be assigned and re-assigned, without Landlord's consent, provided that any such assignment or reassignment be only to a corporation or other entity which is subsidiary to or affiliated with Tenant, or to a corporation or other entity resulting from any consolidation, reorganization or merger to which Tenant, or any of its parent, subsidiaries or affiliates, may be a party. At any time and from time to time, without Landlord's consent, Tenant may also sublet or license or permit a portion or portions of the Building or Leased Premises to be used for concessions, leased or licensed departments and demonstrations in connection with and as part of the operation of Tenant's business, the Gross Sales therefrom shall be included in the Gross Sales of Tenant. (c) At any time and from time to time, without Landlord's consent, Tenant may sublet a portion of the Leased Premises, to any person, firm, corporation or other entity, other than a corporation or other entity described in Article 13(b) above, for any lawful purpose. In such case, the Gross Sales of such subtenant (but not the subrentals paid by such subtenant) shall be included in the Gross Sales of Tenant. In the event of any subletting, Tenant shall pay to Landlord the fixed and percentage rent, if any, provided in Article 2 of this Lease, as and if the same become due and payable pursuant to this Lease. At any time and from time to time, without Landlord's consent, Tenant may assign this Lease or Tenant may sublet the Leased Premises or Building to any person, firm, corporation or other entity, other than a corporation or other entity described in Article 13(b) above, for any lawful purpose. (d) In the event of a subletting of all or a portion of the Leased Premises or Building, and upon Tenant's request, Landlord shall promptly furnish and deliver to Tenant, in form and substance reasonably acceptable to Tenant, an agreement executed by Landlord, obligating Landlord to be bound as Landlord by any such sublease and by all of the subtenant's rights thereunder in the event that this Lease is terminated for any reason; provided, however, that (i) Landlord's obligations under such 18 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 sublease shall be no greater than Landlord's obligations under this Lease; (ii) that the subtenant's obligations under such sublease shall be no less than Tenant's obligations under this Lease and, (iii) the subtenant has cured any breach of this Lease. (e) Notwithstanding any assignment of this Lease, Walgreen Co. shall not be released from liability so long as the Lease is not modified or amended in any respect without the prior written approval of Walgreen Co. In the event of a default by any such assignee, Landlord shall give Walgreen Co. notice of such default, shall accept cure of such default by Walgreen Co. within thirty (30) days after such notice and shall permit Walgreen Co. to re-enter and repossess the Leased Premises for the then unelapsed portion of the Term of this Lease upon all of the provisions of this Lease. CASUALTY 14. (a) If the Building or any improvements in, on or under the Leased Premises shall be damaged or destroyed by fire or other casualty required to be insured by Tenant pursuant to Article 20, then Tenant shall repair and restore the Building and said improvements to (i) their condition immediately prior to such damage or destruction or (ii) a condition similar in nature to those buildings then being constructed by or on behalf of Tenant at the time of the damage or destruction, without abatement of rent. Except for the obligations and liabilities of Tenant set forth in this Article 14, Tenant shall have no other obligations or liabilities with respect to such casualty. (b) Notwithstanding the foregoing, in the event the Building is damaged or destroyed by fire or other casualty to the extent of fifteen percent (15%) or more thereof and such casualty occurs after the first day of the two hundred seventy seventh (27th) full calendar month of the Term, Tenant may cancel this Lease by notice to Landlord. If Tenant has so canceled this Lease and the fire or other casualty is an insurable casualty under Tenant's special form coverage insurance, Tenant shall provide Landlord with the proceeds of such insurance in an amount required by Article 20 of this Lease. Any proceeds payable by Tenant to Landlord under this Article 14(b) shall be exclusive of the cost of improvements made by or on behalf of Tenant to the Leased Premises or Building. LANDLORD'S RIGHT TO INSPECT 15. Landlord may at reasonable times during Tenant's business hours, and after so advising Tenant, enter the Building for the purpose of examining and of making repairs required of Landlord under this Lease, but not so as to interfere with Tenant's business. SURRENDER 16. At the expiration or termination of this Lease, Tenant shall surrender immediate possession of the Leased Premises in good condition subject to reasonable wear and tear, changes and alterations, damage by fire, casualty and the elements, and other repairs which are Landlord's obligation. Any holding over by Tenant shall not operate, except by written agreement, to extend or renew this Lease or to imply or create a new lease, but in case of any such holdover, Landlord's remedies shall be limited to either the immediate termination of Tenant's occupancy or the treatment of Tenanfs occupancy as a month to month tenancy, any custom or law allowing other remedies or damages or which may be to the contrary notwithstanding. DEFAULT AND REMEDIES 17. (a) If any fixed rent is due and remains unpaid for ten (10) days after receipt of notice from Landlord, or if Tenant breaches any of the other promises and covenants of this Lease and if such other breach continues for thirty (30) days after receipt of notice from Landlord, Landlord shall be able to pursue its remedies as provided herein, including suing for rent and other charges due from time to time under the terms of this Lease, or the right to re-enter the Leased Premises with or without termination as hereinafter provided in this Article 17; but if Tenant shall pay said fixed rent within said ten (10) days, or in good faith within said thirty (30) days commence to correct such other breach, and diligently proceed therewith to completion, then Tenant shall not be considered in default. 19 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 Notwithstanding the foregoing, should Tenant be in default, after notice and expiration of the applicable cure period provided above in this Article 17(a), Landlord shall not be entitled to terminate this Lease and re-enter the Leased Premises as a result thereof if Tenant's default shall not be deemed material, or if Tenant's failure to perform is the result of a good faith dispute as to Tenant's obligation(s) under the terms of this Lease. In the event that Tenant shall be considered in default, after notice and an opportunity to cure as herein provided, then and in such event Landlord may pursue the following remedies: (i) (ii) (iii) terminate this Lease and re-enter the Leased Premises by process of law and sue for damages (except consequential or punitive damages); or without terminating this Lease, re-enter the Leased Premises by process of law and relet the same for such term and such rentals as Landlord shall in the exercise of its best efforts be able to obtain at the time of such reletting. Upon such reletting by Landlord, the rents and all other sums received by Landlord from such reletting shall be applied first, to the payment of the reasonable costs and expenses of such reletting (including reasonable brokers' commissions that Landlord may incur in connection with such reletting pertaining to or calculated on only the period between the commencement of the lease term of the replacement tenant and prior to the last day of the 300th full calendar month of the Term); second, to the payment of rent and other charges due hereunder from Tenant to Landlord; and the residue, if any, shall be held by Landlord and applied in the payment of future rent and other charges as the same may become due and payable hereunder. Tenant shall have no obligation to pay any of Landlord's alteration or renovation costs. If the rents and other sums received from such reletting during any month are less than the rents and other sums to be paid during that month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. If Landlord elects to repossess the Leased Premises without terminating this Lease, as herein provided, Landlord shall use its reasonable best efforts to relet the Leased Premises as above stated and shall be obligated to take all reasonable steps necessary to mitigate its damages. In the event Landlord re-enters the Leased Premises without terminating the Lease as herein provided any time prior to the last day of the 300th full calendar month of the Term, this Lease shall be deemed terminated as of the last day of the three hundredth month of the Term, or, should such re-entry without termination occur after the last day of the 3001h full calendar month of the Term, this Lease shall be deemed terminated upon the date that is 365 days after Landlord's re-entry, in which case, in either event, Tenant shall be released of all further unaccrued liability under this Lease; or as Landlord's exclusive remedy for any material default occurring prior to the 30oth full calendar month of the Term, Landlord may terminate this Lease and re-enter the Leased Premises by process of law and recover as liquidated damages and not as a penalty, an amount equal to the sum of: 12 months of fixed rent which is . If Landlord elects this liquidated damages remedy in this subpart (iii), it shall be in lieu of all other remedies for Tenant's default hereunder save and except only equitable remedies for Tenant defaults that cannot be cured by damages at law. Nothing contained herein otherwise shall prohibit Tenant from exercising any option or right to which it may be entitled under this Lease or at law or equity to terminate this Lease, and upon the exercise of such option or right of termination, Tenant shall be released of all further unaccrued liability under this Lease. Except as provided in subpart 17(a)(iii) hereinabove as to liquidated damages, nothing contained herein shall permit Landlord to accelerate any rental or other sums due by Tenant under this Lease. 20 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 The foregoing remedies of Landlord shall be exclusive and are in lieu of any other remedies to which Landlord may now or hereafter be entitled to at law, subject to the limitations on their exercise expressly contained herein. Landlord shall, in the event of a default by Tenant, after notice and opportunity to cure as herein set forth, be entitled to pursue any equitable remedies to which Landlord may be entitled. (b) If Landlord shall from time to time fail to pay any sum or sums due to Tenant and if such failure continues for thirty (30) days after receipt of notice from Tenant, Tenant acting in good faith shall have the right and is hereby irrevocably authorized and directed to deduct such sum or sums from fixed and percentage rent and other sums due Landlord, together with interest thereon at the so-called prime rate charged from time to time by Bank of America (its successors and assigns), plus two percent (2%) until fully reimbursed. If Landlord shall from time to time fail to perform any act or acts required of Landlord by this Lease and if such failure continues for thirty (30) days after receipt of notice from Tenant, Tenant acting in good faith shall then have the right, in addition to such remedies as may be available under law or in equity, at Tenant's option, to perform such act or acts, in such manner as Tenant de~ms reasonably necessary, and the full amount of the reasonable costs and expenses so incurred shall immediately be owing by Landlord to Tenant, and Tenant shall have the right and is hereby irrevocably authorized and directed to deduct such amount from fixed and percentage rent and other sums due Landlord, together with interest thereon at the so-called prime rate charged from time to time by Bank of America (its successors and assigns), plus two percent (2%) until fully reimbursed. If Landlord shall in good faith within said thirty (30) days commence to correct such breach, and diligently proceed therewith to completion, then Landlord shall not be considered in default and Tenant shall not be entitled to such offsets. (c) No delay on the part of either party in enforcing any of the provisions of this Lease shall be considered as a waiver thereof. Any consent or approval granted by either party under this Lease must be in writing and shall not be deemed to waive or render unnecessary the obtaining of consent or approval with respect to any subsequent act or omission for which consent is required or sought. TITLE AND POSSESSION 18. (a) (i) Landlord covenants, represents and warrants to Tenant as follows: (1) that Landlord has entered into a valid, binding and presently enforceable contract to acquire fee simple title to the Leased Premises; (2) that Landlord has the full right, power and authority, without the consent or approval of any other party, to enter into this Lease and perform the obligations on the part of the Landlord to be kept and performed; (3) that said entire property comprising the Leased Premises is now and shall be as of the date of the recording of a Memorandum of this Lease, free and clear of all liens, encumbrances and restrictions, except for those items set forth on Exhibit "E" attached hereto and made a part hereof; and (4) that upon Tenant paying the rents and keeping the agreements of this Lease on its part to be kept and performed, Tenant shall have peaceful and uninterrupted possession of the entire Leased Premises during the Term of this Lease. Landlord, at Landlord's expense, shall also furnish to Tenant at least sixty (60) days prior to delivery of possession of the Leased Premises to Tenant, at Landlord's expense, an AL TA owners 2006 policy of title insurance with an AL TA endorsement form 13, or similar coverage as available, in the amount of $1,000,000, indicating Landlord's fee ownership and insuring Tenant's leasehold estate in the Leased Premises and further insuring any easement parcel contained in any REA and/or Declaration set forth in Article 7 hereof. The title policy shall be issued by Chicago Title Insurance Company, 171 N. Clark Street, 04CI, Chicago, IL 60601 (Attn: Patrick J. Palubin, National Accounts, Phone: 312-223-2420; Fax: 312-223-5801) to be underwritten by any of the Chicago Title/Fidelity family of title underwriters, which include Commonwealth Land Title Insurance Company, Lawyers Title Insurance Corporation or Fidelity Title Insurance Company. The title policy shall also contain: (A) extended coverage over any general exceptions and (B) the following endorsements, (I) an AL TA 3.1 zoning (with parking and loading dock) endorsement insuring that the Leased Premises is properly zoned for general retail use, including the 24-hours per day, seven days a week operation of a drug store with a single lane drive-thru pharmacy with canopy an in-store health clinic and the right to sell alcoholic beverages, beer and 21 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 wine therein, (II) an access endorsement, (Ill) a contiguity endorsement (if applicable), (IV) a tax parcel endorsement, (V) an AL TA 9.2 owner's comprehensive endorsement for improved property, (VI) survey endorsement, (VII) tax sale endorsement for appurtenant easements, and (VII) any other endorsements reasonably required by Tenant. In the event that zoning coverage and/or a zoning endorsement is not available under applicable title insurance law, then Landlord shall provide to Tenant a letter from the municipality having jurisdiction over the zoning of the Leased Premises in form reasonably acceptable to Tenant evidencing such zoning. (ii) To the extent that Landlord's consent is required or sought with respect to any document now or hereafter encumbering Tenant's leasehold title to the Leased Premises (including, but not limited to any item listed on Exhibit "E" hereto), or to the extent that under any such document under which Landlord has the right and opportunity to cast a vote regarding any matter, any consent or vote of Landlord given absent Tenant's express consent or direction shall be of no effect and deemed invalid. Landlord is hereby obligated to immediately notify Tenant, in writing, of any request for consent or call for a vote under any such encumbering document, and provide Tenant with any correspondence relating thereto. Upon direction from Tenant, Landlord must make its election or cast its vote according to Tenant's instructions pursuant to this Paragraph. (b) Landlord warrants and represents to Tenant that no encumbrance or restriction imposed upon the Leased Premises, whether or not described in this Article 18(b), shall impair or restrict any right granted to Tenant or derived by Tenant under this Lease, including the right to operate 24 hours per day, seven days per week, and Landlord does hereby indemnify, defend and hold Tenant harmless from and against all claims, actions, damages, loss, cost and expense (including without limitation attorneys fees and court costs) resulting directly or indirectly from the breach of the foregoing warranty and representation. Landlord shall also provide Tenant with a survey of the Leased Premises prepared in accordance with the standards adopted in 1999 by the American Land Title Association and the American Congress on Surveying and Mapping depicting the Leased Premises and meeting the Table A minimum ALTA Survey requirements set forth on Exhibit "F" attached hereto and made a part hereof (including bulk use requirements for the issuance of a 3.1 zoning endorsement as provided in Section (a) above) and certified to Tenant within thirty (30) days after the Possession Date. (c) If as of the date of the recordation of the Memorandum of this Lease, the Leased Premises, or any part thereof, is subject to any mortgage, deed of trust or other encumbrance in the nature of a mortgage, which is prior and superior to this Lease, it is a further express condition hereof that Landlord shall thereupon furnish and deliver to Tenant, in form and substance acceptable to Tenant, an agreement executed by such mortgagee or trustee, either (i) making such mortgage, deed of trust or other encumbrance in the nature of a mortgage subject and subordinate to this Lease and to the leasehold estate created hereby and to all of Tenant's rights hereunder, or (ii) obligating such mortgagee or trustee and any successor thereto to be bound by this Lease and by all of Tenant's rights hereunder. (d) If required by Landlord's institutional lender holding a first mortgage lien, Tenant shall subordinate the lien of this Lease to the lien of such mortgage encumbering the Leased Premises so long as such lender agrees to be bound by all of the terms and conditions of this Lease and in the event of a conflict between the terms of such mortgage and the terms of this Lease, the terms of this Lease shall supersede the terms of such mortgage. Such agreement, in a form acceptable to Tenant, shall be delivered within 30 days after receipt of written request in accordance with the terms of this Lease. Commencing on the thirteenth (131h) month of the Term and prior to the issuance of any subordination by Tenant, Landlord shall pay to Tenant an administrative charge in an amount equal to Five Hundred Dollars ($500.00). (e) It is understood and agreed that Tenant shall, in no event, be obligated to accept possession of the Leased Premises until the Landlord has complied with the provisions of this Article 18. 22 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 REAL ESTATE TAXES 19. (a) Landlord, prior to the first day of the Term, shall make a mailing address change on the property tax records so that the tax bill and tax notices for only the Leased Premises will be mailed to Tenant as of the first day of the Term at the following address: Walgreen Co., Attn: Tax Department, P.O. Box 901, Deerfield, Illinois 60015. If Landlord fails to cause such address change prior to the first day of the Term, Landlord shall be solely obligated to pay increases, if any, in such taxes occurring between the date of this Lease and the date that is thirty (30) days after the effective date of such change of address, or increases in such taxes resulting from changes in the assessed value of the Leased Premises occurring between such dates. Prior to the date that the tax bill is mailed directly to Tenant pursuant hereto, Landlord, prior to delinquency, shall send to Tenant a copy of the tax bill for the Leased Premises. (b) Upon receipt of the aforesaid tax bills, Tenant shall pay, when due and before delinquency, the ad valorem real estate taxes (including all special benefit taxes and special assessments) levied and assessed against the Leased Premises, commencing with the first day of the Term and continuing for the remainder of the Term. However, the ad valorem taxes levied or assessed for the year in which Tenant commences paying fixed rent shall be prorated between Landlord and Tenant so that Tenant shall pay only such part thereof as pertains to the period commencing on the first day of the Term, and the ad valorem taxes levied or assessed for the year during which this Lease expires or is terminated shall be prorated between Landlord and Tenant so that Tenant shall pay only such part thereof as pertains to the period commencing on January 181 and ending on the date this Lease expires or is terminated. In no event shall Tenant be required to pay real estate taxes pertaining to any period prior to the first day of the Term or subsequent to the expiration or earlier termination of the Lease. Within thirty (30) days of Tenant's request, Landlord shall reimburse Tenant that portion of the tax bill pertaining to any period prior to the first day of the Term or subsequent to the expiration or early termination of the Term. ( c) All special benefit taxes and special assessments shall be spread over the longest time permitted and Tenant's liability for installments of such special benefrt taxes and special assessments not yet due shall cease upon the expiration or termination of this Lease. In no event shall Tenant be obligated to pay any impact fees whether or not billed by the taxing authority as a special benefit tax or a special assessment. (d) Tenant shall have the right, and is hereby irrevocably authorized and directed to deduct and retain amounts payable under the provisions of this Article 19 from additional percentage rents payable under Article 2(b) for such tax year, or in the alternative, if such taxes for any tax year are payable after percentage rents under Article 2(b) for such tax year are payable, then Tenant shall pay such taxes and Landlord shall refund to Tenant the amount of such overpayment of percentage rent. (e) (i) Tenant shall have the right to contest the validity or the amount of any tax or assessment levied against the Leased Premises or any improvements thereon, provided that Tenant shall not take any action which will cause or allow the institution of foreclosure proceedings against the Leased Premises. Landlord shall cooperate in the institution of any such proceedings to contest the validity or amount of real estate taxes and will execute any documents required therefor. (ii) Landlord covenants and agrees that if there shall be any refunds or rebates on account of any tax, governmental imposition or levy paid by Tenant under the provisions of this Lease, such refund or rebate shall belong to Tenant. Any such refunds or rebates received by Landlord shall be held in trust for the benefit of Tenant and shall be forthwith paid to Tenant. Landlord shall, on request of Tenant, sign any receipt which may be necessary to secure the payment of any such refund or rebate, and shall pay over to Tenant such refund or rebate as received by Landlord. (f) The tax parcel ID number(s) for the Leased Premises are set forth below. 210512212008 23 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 INSURANCE 20. Commencing with the Possession Date and continuing until the last day of the three hundredth (3001h) full calendar month of the Term, Tenant shall carry special form coverage insurance covering the Building and the other improvements on the Leased Premises to the extent of not less than 100% of replacement value, with companies which are authorized to do business in the State in which the Leased Premises is located and are governed by the regulatory authority which establishes maximum rates in the vicinity. Commencing with the first day of the three hundred first (301 51) full calendar month of the Term, such coverage shall be on an actual cash value basis. Tenant shall also procure and continue in effect public liability and property damage insurance with respect to the operation of the Leased Premises. Such public liability insurance shall cover liability and property damage for death or bodily injury in any one accident, mishap or casualty in a combined single limit sum of not less than $2,000,000.00. The proceeds from Tenant's casualty insurance hereunder shall be paid and applied only as set forth in Article 14 hereof. Any insurance carried or required to be carried by Tenant pursuant to this Lease, at Tenant's option may, be carried under an insurance policy(ies), self-insurance or pursuant to a master policy of insurance or so-called blanket policy of insurance covering other locations of Tenant or its corporate affiliates, or any combination thereof; provided, however, that in the event Tenant carries any of such insurance under any policy, Tenant shall have the right and is hereby irrevocably authorized and directed to deduct and retain the amounts of said premiums in any lease year from percentage rents payable under Article 2(b) for such lease year, or in the alternative, if such premiums for any lease year are payable after percentage rents under Article 2(b) for such lease year are payable, then Landlord shall refund to Tenant the amount of such overpayment of percentage rent. MUTUAL INDEMNITY 21. Except for loss, cost and expense caused by fire or other casualty, Landlord and Tenant shall each indemnify, defend and hold harmless the other against and from any and all claims, damages, actions, loss, cost and expense (including but not limited to attorneys fees) resulting directly or indirectly from their own respective negligent acts or omissions or the negligent acts or omissions of their respective employees or agents (acting within the scope of their employment or agency). BROKERAGE 22. Landlord and Tenant represent that they have dealt with no broker or agent with respect to this Lease. Landlord and Tenant hereby indemnify, defend, save and hold each other harmless against any claims for brokerage commissions or compensation or other claims of any kind (including reasonable attorney's fees) arising out of the negotiation and execution of this Lease or their interest or involvement with respect to the Leased Premises by anyone claiming such commissions, claims or compensation by, through or under Landlord or Tenant, as applicable. PREVAILING PARTY 23. In the event of litigation between Landlord and Tenant in connection with this Lease, the reasonable attorneys' fees and court costs incurred by the party prevailing in such litigation, including appeals, shall be borne by the non-prevailing party. NOTICES 24. Except as otherwise expressly provided elsewhere in this Lease, all notices hereunder shall be in writing and sent by United States certified or registered mail, postage prepaid, or by overnight delivery service providing proof of receipt, addressed if to Landlord, to the place where rent checks are to be mailed, and if to Tenant, to 104 Wilmot Rd., Deerfield, IL, 60015, Attn: Corporate and Transactional Law Department, Real Estate Group, MS #1420, Re: Store #15101, and a duplicate to the Leased Premises, provided that each party by like notice may designate any future or different addresses to which subsequent notices shall be sent. Notices shall be deemed given upon receipt or upon refusal to accept delivery. 24 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 RIGHT OF FIRST REFUSAL 25. (a) In the event that Landlord shall receive a Bona Fide Offer to purchase the Leased Premises at any time and from time to time on or after the date hereof and during the Term of this Lease or any extensions thereof from any person or entity, Landlord shall so notify Tenant (Attn.: Corporate and Transactional Law Department, Real Estate Group) together with a true and correct copy of said Bona Fide Offer. For purposes hereof, a "Bona Fide Offer'' shall be deemed to be one made in writing by a person or entity that is not related to or affiliated with Landlord which Landlord intends to accept (subject to this Article 25). In submitting the Bona Fide Offer to Tenant, Landlord shall segregate the price and the terms of the offer for the Leased Premises from the price and other terms connected with any additional property or properties that such person or entity is offering to purchase from Landlord, such that Tenant may purchase the Leased Premises separate from any such additional property or properties. In no event shall the Bona Fide Offer condition the purchase of the Leased Premises on the purchase of any additional properties from Landlord. Tenant may, at Tenant's option and within forty-five (45) days after receipt of Landlord's notice of said Bona Fide Offer and receipt of a copy thereof and, if applicable, any relevant loan assumption documentation, offer to purchase the Leased Premises at the price and upon the terms and conditions as are contained in said Bona Fide Offer, in which event, Landlord shall sell the Leased Premises to Tenant upon said terms and conditions and said price; furthermore, in such event, Landlord shall convey the Leased Premises to Tenant by warranty deed subject to the Permitted Title Exceptions listed in Exhibit "E" hereto, and to any other exceptions to title agreed upon in writing during the term of this Lease by the Tenant. Notwithstanding the foregoing, the price that Tenant shall pay for the Leased Premises shall be reduced by an amount equal to broker's fees or commissions that would have been payable by Landlord if the Leased Premises were sold pursuant to a Bona Fide Offer. Landlord shall provide Tenant evidence of the amount of broker's fees or commissions payable in connection with any such Bona Fide Offer. Landlord covenants that it shall accept no such Bona Fide Offer or convey the premises until it has complied with the terms of this Article 25. Any conveyance of the Leased Premises made in the absence of full satisfaction of this Article 25 shall be void. Tenant may enforce this Article 25, without limitation, by injunction, specific performance or other equitable relief. (b) Tenant's election not to exercise its Right of First Refusal shall not prejudice Tenant's rights hereunder as to any further Bona Fide Offer. The terms and conditions contained in this Article 25 shall be binding upon the heirs, successors and assigns of Landlord. TRANSFER OF TITLE 26. (a) In the event that Landlord conveys its interest in the Leased Premises to any other person or entity, Tenant shall have no obligation to pay rents or any other charges under this Lease to any such transferee until Tenant has been so notified and has received satisfactory evidence of such conveyance together with (i) a written direction from such transferee as to the name and address of the new payee of rents and other charges, (ii) such transferee's FEIN or social security number and (iii) the name and address of the party to receive a 1099 from Tenant. It is understood and agreed that Tenant's withholding of rent and other charges until its receipt of such satisfactory evidence shall not be deemed a default under this Lease. (b) In the event that Landlord conveys its interest in the Leased Premises, Landlord shall take all measures necessary to cause real estate tax bills and notices to continue to be mailed to Tenant as required under Article 19. (c) In the event that Landlord transfers the Leased Premises and is required to file a transfer tax declaration or other statement disclosing the consideration received by Landlord for such transfer with any governmental authority having jurisdiction over the Leased Premises, then if and to the extent permitted by applicable law, Landlord shall determine the value of the property being conveyed based on the "Hard Construction Costs" only. Thus, in determining the value of the property conveyed, 25 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 Landlord shall take into account only direct expenses such as land acquisition, on-site improvements to water and sewer, and other expenses incurred in construction of the improvements on the Leased Premises that directly enhance its value. In bifurcating such transfer in accordance with this Paragraph, Landlord shall not include in the value of the property any amounts paid for demolition of existing improvements, broker commissions, legal, architectural and accounting fees, environmental audit and remediation expenses, interest, points or other loan expenses, real estate taxes, insurance and other holding costs incurred during construction of the improvements on the property and any other costs or expenses not directly incorporated into and enhancing the value of the land and improvements ("Soft Construction Costs"). Landlord shall provide Tenant's tax department with a copy of the completed transfer tax declaration or other documents filed with governmental authorities having jurisdiction over the Leased Premises. If applicable law requires, with respect to the completion and filing of a required transfer tax declaration or similar document, that such Soft Construction Costs be included in the determination of the consideration for a transfer of the Leased Premises, and not bifurcated, then Landlord shall do so; provided, to the extent possible, the Soft Construction Costs shall be described on such transfer tax declaration or other document as either leasehold improvements and intangible personal property or as being attributable to the credit of Tenant and income from the Lease, and not as a part of the fair market value of the real estate. RENT TAX 27. Notwithstanding any provision of Article 19 to the contrary, in the event that any governmental authority imposes a tax, charge, assessment or other imposition upon tenants in general which is based upon the rents payable under this Lease, Tenant shall pay the same to said governmental authority or to Landlord if Landlord is responsible to collect the same (in which case Landlord shall remit the same in a timely manner and, upon request of Tenant, evidence to Tenant said remittance). Tenant is hereby authorized and directed to deduct the amount of such taxes, charges, assessments or impositions from additional percentage rents payable under Article 2(b) for such lease year or, in the alternative, in the event that such imposition or a portion thereof is due after percentage rents payable under Article 2(b), Tenant shall have no liability under this Article 27 to the extent that percentage rents for said lease year have been paid; in such event, Landlord shall refund to Tenant the amount of such overpayment of percentage rent. Nothing contained herein shall be deemed to obligate Tenant with respect to any income, inheritance or successor tax or imposition. Notwithstanding any other provision of this Paragraph, Landlord shall be responsible to pay any so-called "business license tax" (or the like) imposed upon landlords generally in connection with the operation of their business, even if such tax is calculated based upon rents payable under a lease. AUDIT 28. Tenant reserves the right to inspect and audit at any time, and from time to time, Landlord's books, records and other documents which evidence the purchase price of the land legally described on Exhibit "B" as well as the development and construction costs related to the Building and other improvements constructed on the Leased Premises. In connection therewith, Landlord shall retain such books, records and other documents which will enable Tenant to conduct such audit. In addition, prior to delivery of possession of the Leased Premises to Tenant, Landlord shall furnish Tenant with a copy of its fully executed closing statement evidencing the purchase price of the land legally described on Exhibit "B" and the last two deeds of record. In the event the actual purchase price for the land described on Exhibit "B" is less than the purchase price for the land approved by Tenant, then Landlord shall refund such difference as a condition precedent to the payment of rent hereunder. The foregoing obligations shall expressly survive the assignment of this Lease or sale of the Leased Premises by the person or entity who or which is the Landlord executing this Lease. 26 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 ESTOPPEL CERTIFICATE 29. During the Term of the Lease, Landlord and Tenant agree to execute and deliver to the other within thirty (30) days after receipt of such request, an estoppel certificate in form and substance acceptable to the party issuing such certificate, which certificate may include information as to any modification of this Lease, dates of commencement of Term and the termination date of this Lease, and to the best of Landlord's or Tenant's knowledge, whether or not Landlord or Tenant is in default of this Lease. Commencing on the thirteenth (131h) month of the Term and prior to the issuance of any such estoppel certificate by Tenant, Landlord shall pay to Tenant an administrative charge in an amount equal to Five Hundred Dollars ($500.00). CONDEMNATION 30. (a) If the entire Leased Premises and/or the Building shall be taken by reason of condemnation or under eminent domain proceedings, this Lease shall terminate as of the date when possession of the Leased Premises and/or the Building is so taken, and the rent reserved in this Lease shall be adjusted so that rent is payable only to the date of taking. The total compensation awarded for the Leased Premises and/or Building so taken shall be divided between Landlord and Tenant as follows without any agreement as to the priority of distribution, except as otherwise stated below: (i) Landlord shall be entitled to a portion of the compensation equal to the present value of the anticipated fixed rent payable pursuant to Article 2(a) above for the unexpired balance of the Term, determined as of the date of such taking; (ii) Tenant shall be entitled to a portion of the compensation for damage to Tenanfs trade fixtures, equipment, leasehold improvements, other personal property, relocation expenses and for the value of the Tenant's leasehold taken (based on the unexpired balance of the Term as of the date of such taking); and (iii) Landlord shall be entitled to the balance of such compensation after the distributions set forth in Sections(a)(i) and (a)(ii) above. (b) If a portion of the Leased Premises and/or Building shall be taken by reason of condemnation or under eminent domain proceedings and if in the opinion of Tenant, reasonably exercised, the remainder of the Leased Premises and/or the Building are no longer suitable for the operation of Tenant's business, Tenant may terminate this Lease with notice to Landlord effective as of the date of such taking and any unearned rents and other charges paid or credited in advance of the effective date of such termination shall be refunded to Tenant. Any notice of termination sent by Tenant pursuant to this Section (b) shall be sent to Landlord no later than sixty (60) days after such taking. (i) If Tenant shall exercise its right to terminate this Lease pursuant to this Section (b) then Tenant shall be entitled to a portion of the compensation to be divided between Landlord and Tenant in the manner set forth in Section (a) above. (ii) If this Lease is not terminated by Tenant pursuant to Section (b)(i) of this Article, then Tenant shall, at its sole cost and expense, restore the remaining portions of the Leased Premises and/or the Building in the manner Tenant deems necessary or desirable (subject to applicable law) and Tenant shall be entitled to a portion of the total compensation to be divided between Landlord and Tenant as follows: (1) first, to Tenant an amount sufficient for Tenant to restore the Leased Premises and/or the Building; and (2) the remainder of the compensation shall be allocated between Landlord and Tenant in the manner set forth in Section (a)(ii) and Section (a)(iii) above. (c) Provided that Tenant does not elect to terminate this Lease as above provided, Tenant shall be entitled to any compensation for any temporary construction easements. 27 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 (d) If this Lease is terminated under this Article, then Tenant's and Landlord's rights to all or a portion of the compensation under this Paragraph shall survive such termination. (e) For the purposes of this Article, the term "condemnation or eminent domain proceedings" shall include conveyances and grants made in anticipation of or in lieu of such proceedings. FORCE MAJEURE 31. In the event either party hereto shall be delayed or hindered in, or prevented from the performance of any work, service or other act required under this Lease to be performed by the party (except delivery of possession of the Leased Premises to Tenant) and such delay or hindrance is due to strikes, lockout, acts of God, governmental restrictions, enemy act, civil commotion, inability to obtain materials, or other causes of a like nature beyond the control of the parties so delayed or hindered, then the performance of such work, service or other act shall be excused for the period of such delay and the period for performance of such work, service, or other act shall be extended for a period equivalent to the period of such delay. Notwithstanding the forgoing, such extended period shall be reduced by the period of time between the event or occurrence giving rise to the delay and the date in which the party seeking such extended time shall notify the other party of the existence of said event or occurrence. Unless expressly provided elsewhere in this Lease, such extension of time shall not exceed six (6) months. WAIVER OF SUBROGATION 32. Landlord and Tenant agree that, in the event of loss due to any of the perils for which they have agreed to provide insurance, each party shall look first to its insurance for recovery. Landlord and Tenant hereby grant to each other, on behalf of any insurer providing insurance to either of them, with respect to the Leased Premises, a waiver of any right of subrogation which any insurer of one party may acquire against the other by virtue of payment of any loss under such insurance, provided that such waiver of the right of subrogation shall not be operative where the effect is to invalidate such insurance coverage. LANDLORD'S EXCULPATION 33. In the event of any transfer, assignment, or other conveyance of Landlord's interest in this Lease, Landlord shall be relieved of all covenants and obligations of Landlord hereunder provided that such purchaser or successor has assumed all such covenants and obligations of the Landlord hereunder. Landlord's principals, Members, and Managers shall have no personal liability hereunder. MISCELLANEOUS 31. (a) Captions of the several Articles contained in this Lease are for convenience only and do not constitute a part of this Lease and do not limit, affect or construe the contents of such Articles. (b) If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. (c) If Landlord is comprised of more than one person or entity, the obligations imposed on Landlord under this Lease shall be joint and several. (d) All provisions of this Lease have been negotiated by both parties at arm's length and neither party shall be deemed the scrivener of this Lease. This Lease shall not be construed for or against either party by reason of the authorship or alleged authorship of any provision hereof. 28 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 (e) This instrument shall merge all undertakings, representations, understandings, and agreements whether oral or written, between the parties hereto with respect to the Leased Premises and the provisions of this Lease and shall constitute the entire Lease unless otherwise hereafter modified by both parties in writing. (f) This instrument shall also bind and benefit, as the case may require, the heirs, legal representatives, assigns and successors of the respective parties, and all covenants, conditions and agreements herein contained shall be construed as covenants running with the land. This instrument shall not become binding upon the parties until it shall have been executed and delivered by both Landlord and Tenant (g) Landlord has been afforded a full and fair opportunity to seek advice from legal counsel and Landlord acknowledges that Tenant's attorney represents Tenant and not Landlord. (h) Notwithstanding anything to the contrary herein, it shall be acceptable hereunder for Landlord to bond over in accordance with applicable law any mechanics' or materialmen's liens to release the Leased Premises from any such mechanics' or materialmen's liens and upon such bonding, the Landlord shall be deemed to have delivered the Leased Premises in a lien free manner hereunder; provided that Landlord shall defend (by counsel reasonably satisfactory to Tenant), indemnify and hold Tenant harmless from any damages, loss or cost (including, without limitation, attorneys' fees and costs) suffered by Tenant thereby. (i) Notwithstanding any provision of this Lease to the contrary, the Term shall commence, if at all, not later than twenty-one (21) years after the date of this Lease. G) The payment of rent hereunder shall not operate as a waiver with respect to any obligation of Landlord set forth in this Lease. (k) This Lease and Landlord's obligations hereunder shall be contingent upon the successful termination of the existing lease of the Leased Premises with within a reasonable time after execution hereof (the " Lease"). Landlord shall use its best efforts to terminate the Lease. If the Lease is not terminated within six (6) months after execution hereof, Landlord may terminate this Lease, and neither party shall have any liability or further obligation under this Lease. However, if within two (2) years from the date of this Lease, Landlord terminates the Lease, then this Lease, at Tenant's option shall be deemed reinstated. Both parties recognize that a breach of this paragraph will leave Tenant with no adequate remedy at law and accordingly, Tenant may seek appropriate equitable relief against such Landlord. (I) Time is of the essence as to this Lease. 29 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease, under seal, as of the day and year first above written. Tenant: WALGREEN CO. By:A~lVl:t=~:;:::;::::::::::-..=-Print e: Robert M. Silverman Its: ·visional Vice President WITNESSES: (Notary and exhibit pages follow.) 30 Landlord: /"""""''""·····,/:~, T~NI 1-SUNR~AD, LLC . /! By:~~~4-.l.-----Print Name: Its: Manager ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 STATE OF ILLINOIS ) ) SS COUNTY OF LAKE ) I, the undersigned, a Notary Public, do hereby certify that Robert M. Silverman, personally known to me to be the Divisional Vice President of WALGREEN CO., an Illinois corporation, and personally known to me to be the person whose name is subscribed in the foregoing instrument, appeared before me this day in person and acknowledged that he signed and delivered the said instrument as such Divisional Vice President of said corporation, pursuant to authority given by the Board of Directors of said corporation, as his free and voluntary act, and as the free and voluntary act and deed of said corporation, for the purposes therein set forth. Given under my hand and notarial seal this~$~ay of~~~ h~ My commission expires: ~ .... \ = ,,_,.,, ~~~ubl~ ,_ ~ "OFFICIAL SE!AL" SARSARAJ.FRANCART ~TARY PUBLIC, STATE OF ILLINOIS M • COMMISSION EXPIRES 11/10/2014 STATE OF COUNTY OF GEORGIA ) ) SS ) , 201_)_. I, the undersigned, a Notary Public, do hereby certify that Vincent A. Riggio, personally known to me to be the Manager of Trinity-Sunroad, LLC, a(n) Georgia limited liability company, and personally known to me to be the person whose name is subscribed in the foregoing instrument, appeared before me this day in person and severally acknowledged that they signed and delivered the said instrument as such Manager of said entity, and caused the seal of said entity to be affixed thereto, pursuant to proper authority, as his free and voluntary act, and as the free and voluntary act and deed of said entity, for the purposes therein set forth. Given under my hand and notarial seal this e--day of~· 2011. My commission expires: • lOIAMlAMll!MG NOTARYPUSIJC llY COMMISSION EXPIRES MAY9, 1!114 DOUGIASCOUN!tGEORGI\ . . 31 ATTACHMENT C: WALGREENS LEASE V> I\.) BOTT!lll OF CANOPY 10 8£ --14'-0 Miii ABOVE GROUND ~5'4~'f 6110' ~ooa•;o<-. Q._ 4 ) TRASI COVPACTOR--~-..._ TOTE (~'/l'S\\IRE PRCi'ERTY LINE L=U.ct" r ~ 36'-o" +/-R=1aoo· __/ ".'. WALGREENS SUN ROAD RA!st:O PLANTER v./ LANDSCAPE WALL PROPOSED MONIJUENl SICll ~ ~ 't ~ \_\----~w~~IEtlT>J. PEDESTRIAN l"6.9_8'' R=•n.oo· lP22~tOO' EXISTt-IG SIOEWALI< SOO'Otl:>"lif 7.94' 1Pl9"06"58' ~ CROSSWALK COOHECTIONS ~ TO E~'BAUCE PEDESTRIAN ~ ACC£SS CONNECT EXISTING SIDEWALK 10 ACC£S:.IBLE PATHWAY TO STORE ENTRANCE: ~~ 1/Qtp//I .. EXISTING SIDEWALK /;>!Wl!G TRAN~OOMERS TO BE Afi)'ty§lfO& BfEA:ilrn~ifrl UTILITY SITE PLAN o· 20' 49' SCALE: 1~=20'-0~ S!TE PLAN JJOO!f!CAl!ONS FINAL SITE LAYOUT ANO DESIGNS ARE SUBJECT TO ffilAL DISCUSSIONS BET'M:EN WAt_ffiEENS AflD D-iE DEVQCffR. SITE IJOOFICATIONS MAY BE SUBJECT TO APPROVAL BY THE TO'iilt (;RO$$ BIHi ()!NG AREA F!RST FLOOR -11,385 SF UEZZANINE = 3,893 SF TOTAL cgoss BU~ING AREA = 15,278 Sf l01 SIZE "' 47,223 Sf OOllfltNC LOT COVE.RAC£ = 2-t1% PARKING irnsillS AREA SUMMARY CALOJLAl!OH SALES = 8,093 SF ).fARKET = 900 SF PHOTO = 435 Sf RX/STOCK/SER\1Cf AREA = NOT INCLUDED TOTAl = 9,428 SF REQUIRED = it PER 1,000 SF = 9,428/-1 = 37.7 SPAC£S PROV1DED = 38 SPACES, lNQUO!~G 2 HC & 10 COl.!PACT SNOW STORA(.( REQUIRED = P\t'T AAEA X 20% PAVEIJENT AREA "' 22,172 Sf -2,600 SF (MELTED) = 19,572 SF (<1.1>} 19,572 x 20% = 3,91-1 Sf PROVlOEO = 4,030 Sf" I ANOSCAPNG: SITE AREA -<17,223 Sf REOUREO "' 203 SITE AREA = 47,223 X 20% "' 9,444 <g PR0\10ED = 11,895 Sf {25.2%) = II SH.OW STORAGE AREA 0 SflOW-MEl T AREA D LAtmSCAPE AREA II SPECIALTY PA\'UJENJ l[GAL DESCRIPTION LOT 2 IN THE SECONO AIJENOVHH TO lHE SU~ROAD SUBOl\1SION, A PLAT OF Vi1-llCl-I WAS RECOOOED .JJNE 1.f-, 1993 IN BOCK 611 AT PAGE 287, [A(',[J COUNTY. COlORADO SITE DRAJNM!f ONSl1£ ORAIHAG£ PATTERNS Yt1LL SH(ET FLOW TO lliEIR POl~T Of DISCHARCC INTO SUN ROAD. STORM SE'M:R PIPING IS NOT LOCAJ[O ADJACENT TO 11-lE snL BllR DIUG DRAINAGE BUILDING RUNOFF lm_L BE CAPJUR£0 Y,HHIN A S[Rlf.:S or INTERNAL ROOf DRAINS \\1-HCH \ldLL OISctfARGE AT GHADE AOJAC(NT TO TH( BUILDING. snr i ANOSCAPf AREA GRArnNG All LAH.OSCAPE AREAS SHALL BE GRADED AT NOT TO EXCEED 3H: IV SLOPES. IF f..'[CTSSARY, UIJ!TEO SIT£ LANDSCAPE WALLS Y.1tl 8£ 1\.lfUl.IEtHEO TO UAINTNN ACCEPTA&.E SITE LANDSCAPE SLOPES, SITE GR"10WG ANQ RETAfN!NG WAI.LS WAITED SITE RE:TAl!UUG WALLS i.IAY BE JUPLEU£NTEO 10 ACH:£V[ PRlfERR£D snr GRADES_ PROPOSED SHE GRADING ANO R€TA1MNG WALLS ARE SUB.(CT TO FINAL GRADING. Sl!f ACtMf OUE TO SlTE LAYOUT REOOIREO BY THE TOv.N, FINAL DEll'Y[RY ACCESS AND SITE C~qCIJlATIOO SHALL BE OETERl.l~~EO BY WALGREENS BAS[O UPON M: flflAL LAYOUT. 1,1 II jil .. I I I r I I 111 11 11 • l , hie II! Ui ~ 'PRELIMINARY "''"~ ""'"""""' ~-·=."":'!:' --=---:t ~ 11111~ : 11 "1 ; iii '~"~~~ I i~ id di li>--L-c- ) ~ ~, ~ I • I IJI . C-100 (j) () -< Q. 0 0 ;JJ il m c. 0 .. -)> ~ < "' 0 ~ ~ "i (/') ~ -I :::c rn OJ "U =i ~ ~ z ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 EXHIBIT "8" LEGAL DESCRIPTION OF LEASED PREMISES Lot 2 in the Second Amendment to the Sunroad Subdivision, a plat of which is recorded at Book 611, page 287, on June 14, 1993, in the Eagle County, Colorado, records, also depicted in the Site Plan shown in Exhibit "A hereto. 33 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 • 34 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 35 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 EXHIBIT "D-10" WALGREENS NEW STORE REQUIREMENTS These items must be completed 10 days before the proposed date of delivery of possession to Tenant. It is hoped that compliance with this checklist will assist both the Landlord and Tenant in the efficient fixturing, merchandising and opening of this new Walgreen store. applicable laws, rules or regulations as a condition of, or a prerequisite to, the 36 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 37 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 EXHIBIT "D-45" WALGREENS NEW STORE REQUIREMENTS These items must be completed 45 days before the proposed date of delivery of possession to Tenant It is intended that compliance with this checklist will assist the Landlord in the completion of the site and off-site improvements required for this new Walgreen store location. 38 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 39 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 EXHIBIT "E" PERMITTED TITLE EXCEPTIONS 1. General ad valorem real estate taxes and assessments not yet due and payable; 2. Any future/proposed utility or other easements and/or utility lines or poles, light poles, rights of way, setbacks or other encumbrances as are necessary to supply utility service to the Leased Premises consistent with the approved Plans and/or required as part of the initial development of the Leased Premises consistent with the approved Plans; provided, however, that no easements shall run underneath the Building nor above or immediately adjacent to (and above ground) the Building so as to obstruct visibility of the Building or affect use of the drive- through facility. Any future/proposed easements or other encumbrances that are not a part of or consistent with the approved Plans and/or required as a part of the initial development of the Leased Premises are subject to Tenant's prior review and approval. 3. Covenants, conditions and restrictions, which do not contain a forfeiture clause or reverter clause, as contained in Declaration recorded at April 23, 1985, in Book 411 at page 960, Eagle County, Colorado, public records, and amendment thereto recorded February 7, 1990, in Book 522 at page 721, aforesaid records. 4. Terms, provisions, covenants and restrictions as contained in Zoning Agreement with the Town of Avon, Colorado recorded August 15, 1991 in Book 559 at Page 953, aforesaid records. 5. Terms, provisions and easement contained in the Trench, Conduit and Vault Agreement recorded June 3, 1992, in Book 581 at page 369, aforesaid records. 6. Utility easement granted to Holy Cross Electric Association, Inc., as contained in Declaration of Utility Easement recorded July 8, 1992, in Book 584 at page 307, aforesaid records. 7. Notes, easements and other matters shown on the plat for the Second Amendment to the Sunroad Subdivision recorded June 14, 1993 at Book 611 at Page 287, aforesaid records. 8. Easement in favor of the Town of Avon as contained in Stipulated Rule and Order recorded July 25, 1997, at Reception No. 628921, aforesaid records. 9. Matters shown on the approved AL TA plat of survey to be provided to the Tenant. 40 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 EXHIBIT "F" SURVEY REQUIREMENTS Requested by: Walgreens -Corporate and Wilmot Rd., MS 1420, Deerfield, IL 60015 Transactional Law Department, Real Estate Group, 104 Contact: ________________ 847/315-_____ direct. WALGREEN$ REQUIRES THE FOLLOWING MINIMUM ALTA SURVEY REQUIREMENTS FROM TABLE A: 1, 3, 4, 6, 7(a), (b 1-2), 8, 9, 10, 11, (a,b), and optional requirements 19 (a,b). TABLE A OPTIONAL SURVEY RESPONSIBILITIES AND SPECIFICATIONS NOTE: The items of Table A must be negotiated between the surveyor and client. It may be necessary for the surveyor to qualify or expand upon the description of these items, e.g., in reference to Item 6, there may be a need for an interpretation of a restriction. The surveyor cannot make a certification on the basis of an interpretation or opinion of another party. Items 16, 17 and 18 are only for use on projects for the U.S. Department of Housing and Urban Development (HUD). If checked, the following optional items are to be included in the AL TA/ACSM LAND TITLE SURVEY, except as otherwise negotiated: 1. _x_ Monuments placed (or a reference monument or witness to the corner) at all major corners of the boundary of the property, unless already marked or referenced by an existing monument or witness to the comer. 2. __ Vicinity map showing the property surveyed in reference to nearby highway(s) or major street intersection(s). 3. _x_ Flood zone designation (with proper annotation based on Federal Flood Insurance Rate Maps or the state or local equivalent, by scaled map location and graphic plotting only.) 4. _x_ Gross land area and other areas if specified by the client. 5. Contours and the datum of the elevations. 6. x List setback, height, and floor space area restrictions disclosed by applicable zoning or building codes (beyond those required under Paragraph Sd of these standards. If none, so state. The source of such information must be disclosed. See "Note" above. 7. _x_ (a) Exterior dimensions of all buildings at ground level _x _ (b) Square footage of: _x_ ( 1) exterior footprint of all buildings at ground level _x_ (2) gross floor area of all buildings; or _x_ (3) other areas to be defined by the client __ (c) Measured height of all buildings above grade at a defined location. If no defined location is provided, the point of measurement shall be shown. 8. _x_Substantial, visible improvements On addition to buildings) such as billboards, signs, parking structures, swimming pools, etc. 9. _x_Parking areas and, if striped, the striping and the type (e.g. handicapped, motorcycle, regular, etc.) and number of parking spaces. 10. _x_ Indication of access to a public way on land such as curb cuts and driveways, and to and from waters adjoining the surveyed tract, such as boat slips, launches, piers and docks .. 11. _x_ Location of utilities (representative examples of which are shown below) existing on or serving the surveyed property as determined by: _x_ (a) Observed evidence _x_ (b) Observed evidence together with evidence from plans obtained from utility companies or provided by client, and markings by utility companies and other appropriate sources (with reference as to the source of information): • railroad tracks and sidings; • manholes, catch basins, valve vaults or other surface indications of subterranean uses; • wires and cables Qncluding their function, if readily identifiable) crossing the surveyed premises, all poles on or within ten feet of the surveyed premises, and the dimensions of all crossmembers or overhangs affecting the surveyed premises; and • utility company installations on the surveyed premises. 12. __ Governmental Agency survey-related requirements as specified by the client. 13. __ Names of adjoining owners of platted lands. 14. __ The distance to the nearest intersecting street as designated by the client 15. __ Rectified orthophotography, photogrammetric mapping, laser scanning and other similar products, tools or technologies may be utilized as the basis for the location of certain features (excluding boundaries) where ground measurements are not otherwise necessary to locate those features to an appropriate and acceptable accuracy relative to a nearby boundary. The surveyor shall (a) discuss the ramifications of such methodologies (e.g. the potential accuracy and completeness of the data gathered thereby) with the titie company, lender and client prior to the performance of the survey and, (b) place a note on the face of the survey explaining the source, date, relative accuracy and other relevant qualifications of any such data. 16. __ Observable evidence of earth moving work, building construction or building additions within recent months. 17. __ Any changes in street right of way lines either completed or proposed, and available from the controlling jurisdiction. Observable evidence of recent street or sidewalk construction or repairs. 18. __ Observable evidence of site use as a solid waste dump, sump or sanitary landfill. 19. _x_ (a) Locate and show reciprocal easement agreements and any appurtenant and beneficial easements to the land subject to your survey. _x_ (b) Please add a "statement of encroachments". Please certify the survey to all parties: Walgreens' corporate entity ("Tenant"), title company and the landlord; lender and additional parties may be added upon request. 41 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 EXHIBIT "G" DATE CONFIRMATION AGREEMENT In reference to that certain lease dated , 20_ (the "Lease"), by and between , a(n) corporation ("Landlord"), and WALGREEN CO., an Illinois corporation ("Tenanf), and pursuant to Article_ of the Lease, the parties hereby agree as follows: 1. The Possession Date is ______ , 20_. 2. The Term of the Lease commenced on and shall expire on , 20_, subject to Tenant's termination options as set forth in the Lease. 3. All other provisions of said Lease shall remain in full force and effect. Tenant: Landlord: WALGREEN CO. B: B: Print Name: Print Name: ------------------1 ts: 1 ts: 42 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 EXHIBIT "H" LANDSCAPE PLAN O? 'NO/\'i Nns Q'i'i NO/\"' ?MN -SN:E:l>91'71V 43 ll I I I ill I I I 1111 ATTACHMENT C: WALGREENS LEASE Colorado, Avon STORE # 15101 ::i:::i: ~~ I , ! i ' §'' § § ~ gij !I ir :;; -~; ' ' ~ :> ::i:::i: ~· . : :I ~; ' ~; ' ' I ' 1, jl· ~. ~ ,·i ~ . 811! e~;h~ . ~ii EXHIBIT "I" BUILDING ELEVATIONS Cl .... N "'·1 t ~g ., I. .. • cc "' 0 •i I" illli ·i~ !!Ii! •• = .,, G:I "' G:I ~ 0 .. -= 0 -u "' 3: -c: ' 0 > "' q: = Cl .,, ... "' c:'. > c: G:I :::l LI.I VJ 01! .,, c:'. c: 0 > q: ~ -0 ;;; .. -E -E "' 0 0 u ~ " 0 u 44 ATTACHMENT C: WALGREENS LEASE TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Preston Neill, Deputy Town Manager Date: May 8, 2018 Topic: AUTHORIZATION TO APPROPRIATE UP TO $15,000 FROM THE TOWN PROPERTIES CONTINGENCY LINE ITEM IN THE CAPITAL PROJECTS FUND BUDGET FOR LOT 5 RECYCLE CENTER PLANNING AND DESIGN SERVICES ACTION BEFORE COUNCIL Council is asked to appropriate up to $15,0000 from the Town Properties Contingency line item in the Capital Projects Fund Budget for Lot 5 recycle center planning and design services. PROPOSED MOTION “I move to appropriate up to $15,000 from the Town Properties Contingency line item in the Capital Projects Fund Budget for Lot 5 recycle center planning and design services.” SUMMARY On April 10, 2018, Council approved second reading of Ordinance 18-03, adopting a Comprehensive Plan document titled: Town of Avon Town‐owned Properties Plan. The Plan identifies development strategies for properties throughout Town, one of those properties being Village at Avon Lot 5. The Plan calls for a regional recycling center to be housed on a portion of Lot 5. Vail Honeywagon currently operates the existing free recycling drop-off center in Avon, located along Nottingham Ranch Road. With Vail Honeywagon’s lease with Traer Creek, LLC set to expire on November 1, 2018, Eagle County and the Town have begun discussions about transitioning the free recycling drop-off center to Lot 5. As a first step in the process, Town staff solicited a proposal from Zehren and Associates to develop site plan options that study possible arrangements and layouts for the recycle center program on the Lot 5 parcel in conjunction with other future uses contemplated for the parcel. Zehren and Associates was solicited based upon their previous design services and familiarity with Lot 5. For design work, Zehren and Associates has proposed a fee of $7,800, which includes the cost of preparing the plan and Traer Creek Design Review Board application to relocate the existing recycle center to Lot 5. The scope of work does not include the cost for an engineering consultant to prepare the necessary engineering plans. It is estimated that the cost for the Town to retain the services of an independent engineering consultant to support the design work of Zehren and Associates is approximately $6,000, bringing the total estimated cost for the project to $13,800. If Council authorizes this appropriation request, staff will proceed with an Independent Contractor Agreement for the architectural services, as well as secure engineering consultant services to assist with site planning and vehicle turn studies associated with the recycling center. TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Louise Duncan, Interim Special Event Manager Meeting Date: May 8, 2018 Topic: ACTION ON A REQUEST TO APPROPRIATE $21,000 FROM THE CONTINGENCY LINE ITEM IN THE GENERAL FUND BUDGET FOR THE PRESENTING SPONSORSHIP OF THE LAKE STREET MARKET – A WEEKLY EVENING MARKET FROM JUNE 20 TO SEPTEMBER 12 ACTION BEFORE COUNCIL Council is asked to review and act on the Lake Street Market proposal and sponsorship request. RECOMMENDED MOTION I move to approve the Lake Street Market as presented (or as amended), with sponsorship appropriated from the 2018 General Fund Contingency in the amount of $21,000.00. The Town will be the Presenting Sponsor and the name of the market will be Avon’s Lake Street Market. The current balance in the line item is $143,594.00. BACKGROUND Derek George, CEO of Alpenglo Media, LLC, is requesting support and approval from the Town Council for the Lake Street Market, which is detailed in Attachment 1. Action is requested at the meeting to allow the market this summer. STAFF RECOMMENDATION The Town staff supports the project and sponsorship request, as a unique opportunity for community placemaking and to add interest and vibrancy to the Town core and attract visitors into Avon. • Similar to the Playhouse Project, the market is an excellent example of the type of creative/cultural activity, which supports the objectives in developing a Creative District in Avon. • Derek George has a proven history in successfully working and managing similar markets and other entrepreneurial endeavors in the Vail Valley. * *Please note that Derek George is a member of the Ad Hoc Special Events Committee. ATTACHMENT ATTACHMENT 1 - PROJECT DESCRIPTION, OBJECTIVES & SPONSORSHIP REQUEST The Lake Street Market PROJECT DESCRIPTION, OBJECTIVES, AND SPONSORSHIP REQUEST Prepared by Derek George, Lettuce Patch Productions, LLC The Lake Street Market: a weekly evening market to foster culture and community in the heart of Avon. OVERVIEW: Engaging people in public spaces through public art, collective cultural experience, and locally sourced food builds social capital. In turn, civic involvement increases, social networks are enhanced, and the local economy is stimulated. In short, the Lake Street Market aims to build social capital throughout Avon in a weekly celebration of history, art, food, drink, and music. The Lake Street Market will run Wednesdays 4:00 to 9:00 p.m. from June twentieth through September twelfth. It will be the valley’s only evening market. The Lake Street Market will feature Colorado’s crop of local purveyors, artists, street performers, food trucks and local restaurants. A beer garden all centered around communal farm-style seating will promote constructive interaction among people. In addition, the Lake Street Market will feature the Lettuce Patch, a kid zone paying homage to Avon’s rich agricultural history. The Lettuce Patch will serve to entertain little ones with historical themed activities and whimsical children’s artwork incorporating a lettuce theme. The Lake Street Market will quickly become a Wednesday night tradition encouraging locals and visitors alike to spend an evening in Avon’s Town Center. OBJECTIVES: 1) Civic Engagement via Community Placemaking: Research on civic engagement points to the importance of places in which people feel comfortable to cross paths; in such places, important informal community interaction occurs. Often Avon feels like a segregated place due to the lack of common spaces for residents with a wide variety of economic and ethnic backgrounds to come together. The Lake Street Market will provide the necessary space for Avon residents and the entire Vail Valley to shop, sell, eat, and connect as an entire community translating to greater civic engagement. 2) Strengthen Avon’s Creative Social Network: At the direction of Town Council, the Creative Founding Committee (CFC) was tasked to determine the best methods to engage local creatives (artists, artisans, chefs, architects, brewers, graphic designers, etc.). The Lake Street Market will provide a consistent opportunity for creatives to network. Additionally, regular interaction with creatives leads to learning opportunities for attendees of all ages. 3) Foster Entrepreneurship: Entrepreneurship is vital to creating the local economy that sustains mountain town living. Avon’s central location to both the Vail Valley and the State of Colorado make it an ideal meeting place for entrepreneurs. The Lake Street Market will foster entrepreneurship and reinforce Avon as a viable place to do business. 4) Historical Education and Appreciation: The Lake Street Market will work in coordination with Avon’s Historical Society to foster a greater understanding and appreciation of Avon’s history. BENEFITS TO THE TOWN: • Increase exposure to all the TOA has to offer, from Nottingham Lake, restaurants, the arts, shopping—our culture and lifestyle. • Increase activity on Wednesdays in Avon’s core. • Additional sales tax revenue for TOA. • Increase sales for Avon’s businesses and restaurants. • Marketing for TOA and local business. • Support and encourage a family friendly environment. • Celebrate Avon’s rich history. • Community involvement from the TOA, local businesses, artists and residents. • Sustainable event that has tremendous potential for growth. • Celebrate and encourage diversity and culture. • Seed an important Creative District type business. SPOSORSHIP OPPORTUNITY: The Lake Street Market is pleased to strengthen the vibrancy and activity of the Avon community. Sponsorship translates to economic returns, social cohesion, and quality of life. The Town of Avon is asked to become the Presenting Sponsor with a 2018 contribution of $21,000. Benefits of the sponsorship are listed below. The sponsorship opportunities for the Lake Street Market are as follows. Lake Street Market Presenting Sponsor Estimated impressions 1,000,000+ $21,000.00 Beer Garden Presenting Sponsor Estimated impressions: 600,000+ $18,000.00 The Lettuce Patch Presenting Sponsor Estimated impressions: 600,000+ $12,000.00 Lake Street Stage Presenting Sponsor Estimated impressions: 600,000+ $7,200.00 Colorado’s Crop Presenting Sponsor Estimated impressions: 600,000+ $3,600.00 PRESENTING SPONSOR BENEFITS: The market will be named Avon’s Lake Street Market. The Town of Avon will be included on all marketing materials and efforts including: Social Media (Facebook, Instagram, Twitter), Radio, TV (TV8), Street Team efforts (posters, concierge talk-up, etc.), Town of Avon Bridge Banner and VMS boards. The presenting sponsor will be synonymous with the event. LAKE STREET MARKET SCHEMATIC: TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, APRIL10, 2018 AVON TOWN HALL, ONE LAKE STREET Page 1 1. A CALL TO ORDER & ROLL CALL Mayor Fancher called the meeting to order at 4:30 p.m. A roll call was taken and Council members present were Amy Phillips, Sarah Smith Hymes and Scott Prince. Jake Wolf, Megan Burch and Matt Gennett were absent. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Police Chief Greg Daly, Planning Director Matt Pielsticker, Public Works Director Gary Padilla, Deputy Town Manager Preston Neill and Town Clerk Debbie Hoppe. 2. APPROVAL OF AGENDA Mayor Fancher requested a discussion of written report item 9.3., the update on the Hahnewald Barn Project. 3. MEETING PROCEDURES FOR THE MEETING OF APRIL 10, 2018 4. POLICE DEPARTMENT PRESENTATIONS (POLICE CHIEF GREG DALY) Start time: 01:26 Part One a. DEPARTMENT PRESENTATION b. PRESENTATION OF AWARDS Police Chief Greg Daly presented the 2017 end of year report, activities and accomplishments, life savings and other awards. Matt Gennett arrived at 4:35 p.m. Megan Burch arrived at 4:40 p.m. LIQUOR LICENSING AUTHORITY MEETING Mayor Fancher moved to convene into the Liquor Authority Meeting. Councilor Phillips seconded the motion and it passed unanimously by Council present. Councilor Wolf was absent. Council reconvened into the regular meeting. A roll call was taken and Council members present were Matt Gennett, Amy Phillips, Megan Burch, Scott Prince, and Sarah Smith Hymes. Jake Wolf was absent. 5. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA* Start time: 40:18 Part One Michael Cacioppo commented on Council’s attitude and he often can’t hear most of Council due to not using the microphones. Michael also asked if the Hahnewald Barn was on the agenda for the evening. 6. ACTION ITEMS Start time: 43::07 Part One 6.1. INTERVIEWS AND APPOINTMENT OF UP TO THREE PLANNING AND ZONING COMMISSION MEMBERS (MAYOR JENNIE FANCHER) Council held interviews of five applicants for three two-year PZC terms. Martin Golembiewski, Kenneth Howell and Alex Dammeyer were appointed for 2-year terms. TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, APRIL10, 2018 AVON TOWN HALL, ONE LAKE STREET Page 2 6.2. PRELIMINARY PUD APPLICATION, VILLAGE AT AVON Start time: 99:02 Part One 6.2.1. FINDINGS OF SUBSTANTIAL COMPLIANCE WITH PUBLIC NOTICE REQUIREMENTS (TOWN ATTORNEY ERIC HEIL) Mayor Fancher and Councilor Prince recused themselves from the discussion. Mayor Pro Tem Smith Hymes opened the discussion to the public and Michael Cacioppo suggested return receipt requested or email confirmation for public notices. Councilor Gennett moved to approve the Formal Finding of Substantial Compliance with the Public Notice Requirements. Councilor Burch seconded the motion and it passed with a vote of 4. Councilor Phillips recommended putting together a small committee of people to look at the noticing procedures. Mayor Fancher and Councilor Prince abstained from the vote. Councilor Wolf was absent. 6.2.2. PUBLIC HEARING ON PRELIMINARY PUD (PLANNING DIRECTOR MATT PIELSTICKER) Start Time: 105:44 Part One Mayor Pro Tem Smith Hymes opened the public hearing for comments. Tsu Wolin-Brown with Salvation Army commented on the need for more housing. Michael Cacioppo stated that in 1998 he was for 1,20o units on Traer Creek not 2,400 units per acre and he said there is plenty of commercial areas. Erich Schmidt, NAI Mountain Commercial stated there is zero need to increase commercial density. Steve Lindstrom commented that the residential still does not support the commercial. Councilor Phillips moved to continue the Preliminary PUD Amendment, File #PUD17001, to the May 8, 2018 meeting (or any other hearing within 65 days), pending additional information to determine conformance with the Review Criteria and direction to staff to prepare the Findings of Fact and Record of Decision. Councilor Burch seconded the motion and it passed with a vote of 4. Mayor Fancher and Councilor Prince abstained from the vote. Councilor Wolf was absent. 7. WORK SESSION Start time: 00:01 Part Two 7.1. USFS 779 WORK SESSION WITH AARON MAYVILLE, EAGLE-HOLY CROSS DISTRICT RANGER (PLANNING DIRECTOR MATT PIELSTICKER) Direction was provided to have Aaron Mayville come back for another work session at the May 8th Council meeting and to hold a community meeting to decide upon the preferred USFS access via 717.1B or 779. 8. ACTION ITEMS Start time: 60:36 Part Two 8.1. NOTICE OF AWARD FOR BEAVER CREEK BOULEVARD IMPROVEMENTS TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, APRIL10, 2018 AVON TOWN HALL, ONE LAKE STREET Page 3 (TOWN ENGINEER JUSTIN HILDRETH) Councilor Burch moved to approve issuance of Notice of Award for the Beaver Creek Boulevard Streetscape Improvements Project contract to the low bidder, Hudspeth & Associates, Inc. in the amount of $3,607,000 as approved in the Town of Avon 2018 Capital Projects Fund. Councilor Prince seconded the motion and it passed unanimously by Council present. Councilor Wolf was absent. 8.2. PUBLIC HEARING RESOLUTION 18-09, CAPITAL PROJECTS FUND BUDGET AMENDMENT (ASSISTANT TOWN MANAGER SCOTT WRIGHT) Start time: 65:06 Part Two Mayor Fancher opened the public hearing for comments. There were no comments made. Councilor Burch moved to approve Resolution 18-09, A Resolution Amending the 2018 Capital Projects Fund Budget. Councilor Phillips seconded the motion and it passed unanimously by Council present. Councilor Wolf was absent. 8.3. CONSENT AGENDA Start time: 77:10 Part Two 8.3.1. APPROVAL OF NOTICE OF AWARD FOR 2018 STREET IMPROVEMENTS – MICRO SURFACING PROJECT (TOWN ENGINEER JUSTIN HILDRETH) 8.3.2. Approval OF MINUTES FROM MARCH 27, 2018 COUNCIL MEETING (TOWN CLERK DEBBIE HOPPE) Councilor Burch moved to approve the Consent Agenda. Councilor Phillips seconded the motion and it passed unanimously by Council present. Councilor Wolf was absent. 8.4. PUBLIC HEARING SECOND READING ORDINANCE 18-03, ADOPTING THE TOWN OF AVON TOWN-OWNED PROPERTIES PLAN (PLANNING DIRECTOR MATT PIELSTICKER) Start time: 77:46 Part Two Mayor Fancher opened the public hearing for comments. Michael Cacioppo suggested that a convention center be placed on the current Town Hall lot. Councilor Gennett moved to approve Second Reading of Ordinance 18-03, with amendments outlined in ATTACHMENT C and with the modifications identified by Councilor Prince. Mayor Pro Tem Smith Hymes seconded the motion and it passed unanimously by Council present. Councilor Wolf was absent. 9. WRITTEN REPORTS 9.1. POLICE DEPARTMENT SIX-MONTH UPDATE (POLICE CHIEF GREG DALY) 9.2. AVON POLICE DEPARTMENT DISPOSITION ON FORFEITED PROPERTIES FOR 2017 (POLICE CHIEF GREG DALY) 9.3. UPDATE ON THE HAHNEWALD BARN PROJECT AND REQUEST FOR PROPOSALS RELEASE (TOWN ENGINEER JUSTIN HILDRETH) 9.4. ABSTRACT FROM APRIL 3, 2018 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) Start time: 101:26 Part Two TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, APRIL10, 2018 AVON TOWN HALL, ONE LAKE STREET Page 4 Council moved into a discussion regarding the Hahnewald Barn Project and Request for Proposals Release. 10. MAYOR & COUNCIL COMMENTS & MEETING UPDATES Start time: 108:38 Part Two Mayor Fancher mentioned the plastic bag ban goes into effect May 1, 2018 and the Gears and Beers event will take place next weekend. Councilor Burch said she attended a recent Regional Health Alliance meeting that focused on housing. She said there was a representative from the Department of Local Affairs at the meeting who shared that there are several training opportunities and resources available to anyone interested. Mayor Pro Tem Smith Hymes gave an update on the Snow Water Equivalent Report. She also mentioned that she attended the EagleBend Housing meeting. She commented that the facelift to the buildings at Eaglebend is ahead of schedule and on budget. Council agreed not to proceed with Executive Session. 11. EXECUTIVE SESSION WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE UNDER C.R.S. §24-6- 402(2) (A) CONCERNING POTENTIAL LIABILITY 12. ADJOURNMENT There being no further business to come before the Council, Mayor Fancher moved to adjourn the regular meeting. The time was 10:29 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. TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, APRIL10, 2018 AVON TOWN HALL, ONE LAKE STREET Page 5 RESPECTFULLY SUBMITTED: ________________________________ Debbie Hoppe, Town Clerk APPROVED: Jennie Fancher ___________________________________ Sarah Smith Hymes ___________________________________ Jake Wolf ________________________________ Megan Burch ________________________________ Matt Gennett ________________________________ Scott Prince ________________________________ Amy Phillips ________________________________ FISCAL YEAR 2018 FINANCIAL REPORT May 8, 2018 ______________________________________________________________________________________ 1. Financial Report Memorandum 2. Sales Tax Report – February 3. Accommodations Tax Report – February 4. Real Estate Transfer Tax Report – March 5. Recreation Center Admissions – March 6. General Fund Year-To-Date Expenditures – March 7. Fleet Maintenance Fund Year-To-Date Expenditures – March 8. Transit Fund Year-To-Date Expenditures – March TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Martha Anderson, Senior Accountant Meeting Date: May 8, 2018 Re: Fiscal Year 2018 Financial Report – March 2018 SUMMARY Revenues SALES TAX  Sales tax revenue for February totaled $785,412, a 1.69% decrease over the previous year and a 3.41% decrease over the annual budget.  Sales tax collections increased 10.92% for restaurants/bars, 6.83% for home/garden, 2.32% for sporting goods retail/rental, 0.56% for other, and decreased 32.89% for liquor stores, 17.76% for service related, 9.34% for miscellaneous retail, 3.60% for accommodations, and 0.37% for grocery, specialty, and health compared to February 2017. ACCOMMODATIONS TAX  Accommodations tax revenue for February totaled $186,147, a 4.44% decrease over the previous year and a 5.61% decrease over the annual budget.  Accommodations tax collections increased 1.55% for time shares and decreased 6.53% for vacation rentals and 5.93% for hotels compared to February 2017. REAL ESTATE TRANSFER TAX  Real estate transfer tax collections for March totaled $344,557, an increase of 35.26% over the previous year.  Year‐to‐date RETT collections are up 38.75% over the previous year and up 55.77% over the annual budget. RECREATION CENTER ADMISSIONS  March’s admission fees totaled $79,071, a 5.96% decrease over the previous year and a 9.33% decrease over the annual budget.  Year‐to‐date admission collections are down 3.38% over the previous year and down 2.13% over the annual budget. Expenditures GENERAL FUND  General fund expenditures through March totaled 30.84% of the 2018 annual budget. These expenditures include the Town’s annual insurance premium, events, community grants, an encumbrances for the Town Attorney and janitorial services. FLEET MAINTENANCE  Fleet expenditures through March are at 28.61% of the total budget. These costs include expenditures of stock parts, computer services, fleet maintenance and insurance premiums. TRANSIT  Transit funds are 32.06% expended as of March compared to the annual budget. These expenditures include costs of gas, fuel, fleet maintenance, wash bay charges, insurance premiums and equipment replacement. TOWN OF AVONSALES TAX 2018 Actual vs. Budget Budget YTD Collections Budget % of change2013 2014 2015 2016 2017 2018 2018 Variance from 2017January 677,943.78$ 638,863.27$ 765,195.68$ 743,689.78$ 792,562.03$ 800,994$ 825,816.08$ 24,822.19$ 4.20%February 636,702.27 673,722.03 788,999.06 774,754.00 798,923.33 813,135 785,412.03 (27,723.47)$ -1.69%March 720,267.31 793,301.96 875,499.53 945,795.71 918,657.55 941,627 April 307,407.13 381,839.56 403,560.42 438,198.18 425,727.85 433,173 May 309,938.72 340,332.28 353,840.11 404,872.55 394,689.30 399,289 June 490,329.18 538,517.31 570,424.51 693,675.00 650,794.65 651,673 July 537,479.66 570,959.86 601,516.82 690,342.23 682,024.81 682,352 August 504,332.25 547,085.80 572,647.57 593,398.26 618,515.44 627,817 September 475,362.88 546,016.59 595,235.68 667,949.51 690,883.92 658,692 October 356,925.96 417,921.46 423,701.53 451,303.71 458,645.68 466,770 November 362,460.94 397,935.36 438,315.55 445,336.04 435,975.05 460,467 December 981,917.79 1,221,263.98 1,159,160.45 1,247,832.82 1,183,666.21 1,282,616 Total 6,361,067.87$ 7,067,759.46$ 7,548,096.91$ 8,097,147.79$ 8,051,065.82$ 8,218,606$ 1,611,228.11$ (2,901.27)$ 1.24%Actual Collections$600,000$620,000$640,000$660,000$680,000$700,000$720,000$740,000$760,000$780,000$800,000$820,0002014 2015 2016 2017 2018YearSales Tax Collections for February TOWN OF AVONSALES TAX 2018 Actual vs. Budget $‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,0002014 2015 2016 2017 2018YTD Sales Tax Comparison $‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000Sales Tax Monthly Comparison 2016-2018 201620172018 TOWN OF AVONACCOMMODATIONS TAX 2018 Actual vs. Budget Budget YTD Collections Budget % change2013 2014 2015 2016 2017 2018 2018 Variance 2017January 108,508.43$ 129,851.78$ 164,361.04$ 168,424.63$ 190,207.82$ 178,101$ 181,588.99$ 3,487.49$ -4.53%February 137,503.61 150,317.06 175,056.31 185,370.53 194,804.88 197,213 186,147.24 (11,065.82)$ -4.44%March 153,208.80 168,597.39 183,650.29 217,387.54 201,008.55 216,114 April 26,494.49 31,626.02 34,825.13 60,916.55 38,340.02 44,961 May 24,527.17 21,961.97 28,002.56 37,357.48 39,961.98 35,513 June 66,578.91 54,232.23 53,397.46 73,591.08 83,723.31 77,552 July 73,008.92 81,083.01 86,301.22 107,595.18 119,300.76 109,312 August 67,688.07 71,044.33 75,107.71 87,674.05 100,628.23 94,072 September 44,661.37 50,840.16 60,417.74 68,139.11 81,837.60 71,557 October 27,154.53 34,977.59 38,706.72 45,738.23 48,223.10 45,569 November 28,171.04 32,064.02 34,328.47 37,570.50 46,397.08 41,763 December 131,361.43 168,944.85 198,421.26 200,114.56 189,505.28 207,809 Total 888,866.77$ 995,540.41$ 1,132,575.91$ 1,289,879.44$ 1,333,938.61$ 1,319,538$ 367,736.23$ (7,578.33)$ -4.49%Actual Collections $- $50,000 $100,000 $150,000 $200,000 $250,0002014 2015 2016 2017 2018Accommodations Tax Collections for February Town of AvonReal Estate Transfer Tax 2018 Actual vs. BudgetBudget YTD Collections $ Change % of Change2013 2014 2015 2016 2017 2018 2018 2017 2017January 22,535.00$ 85,126.74$ 48,640.40$ 64,422.00$ 107,390.00$ 78,112$ 264,063.20$ 156,673.20$ 145.89%February 55,872.69 562,219.70 85,479.08 200,850.86 270,815.26 279,781 269,578.51 (1,236.75)$ -0.46%March 125,927.64 50,375.06 168,744.22 265,061.65 254,737.53 205,888 344,556.74 89,819.21$ 35.26%April 144,437.80 197,656.36 125,266.30 159,046.06 249,938.93 208,626 May 121,784.12 183,745.60 237,971.08 184,987.10 377,490.82 263,293 June 90,309.74 220,009.15 294,434.84 307,127.24 703,419.85 384,544 July 386,434.78 141,051.52 396,838.68 259,977.94 219,208.74 334,124 August 97,579.70 154,032.32 152,380.93 186,483.40 592,467.49 281,615 September 157,010.67 267,886.92 291,223.61 321,957.68 423,013.80 347,832 October 169,839.80 178,044.24 172,855.22 641,688.59 497,642.58 395,202 November 112,491.82 122,582.66 169,328.38 315,109.37 425,402.80 272,562 December 83,382.60 1,598,062.92 225,862.90 588,514.66 227,918.50 648,422 Total 1,567,606.36$ 3,760,793.19$ 2,369,025.64$ 3,495,226.55$ 4,349,446.30$ 3,700,000$ 878,198.45$ 245,255.66$ 38.75%Budget 3,700,000.00 Variance, Favorable (Unfavorable) (2,821,801.55)$ Actual Collections $- $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 $700,000.00 $800,000.00 $900,000.00 $1,000,000.002014 2015 2016 2017 2018YTD Real Estate Transfer Tax Collections TOWN OF AVONRECREATION CENTER ADMISSION FEES 2018 Actual vs. Budget Budget YTD Collections Budget % of change2013 2014 2015 2016 2017 2018 2018 Variance from 2017January 70,040$ 62,607$ 64,723$ 74,674$ 74,674$ 77,079$ 88,582.09$ 11,502.85$ 18.62%February 68,578 63,838 68,506 86,342 93,366 84,618 75,952.60 (8,665.61)$ -18.65%March 72,616 77,902 81,664 76,023 84,086 87,211 79,071.20 (8,139.37)$ -5.96%April 64,370 61,760 55,452 67,398 62,435 69,231 May 35,064 43,119 50,067 54,337 61,442 54,250 June 46,194 55,052 58,431 58,044 63,459 62,509 July 71,491 61,472 66,400 65,874 82,540 77,315 August 57,329 63,233 66,389 76,558 66,543 73,374 September 43,829 36,846 44,719 49,018 48,279 49,506 October 48,803 75,818 61,167 51,833 59,234 65,994 November 93,822 29,570 71,384 72,114 97,193 80,940 December 69,258 77,672 112,201 169,093 169,913 132,972 Total 741,394$ 708,889$ 801,102$ 901,307$ 963,163$ 915,000$ 243,605.89$ (5,302.13)$ -3.38%Actual Collections $70,000 $72,000 $74,000 $76,000 $78,000 $80,000 $82,000 $84,000 $86,0002014 2015 2016 2017 2018Recreation Center Admissions - March Dept./Div. 2018 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget General Government: 111 Mayor and Town Council 226,760$ 424$ 66,715$ 159,621$ 29.61% 112 Boards and Commissions 16,049 - 3,837 12,212 23.91% 113 Town Attorney 132,000 111,024 25,546 (4,570) 103.46% 115 Town Clerk 117,913 5,898 24,310 87,705 25.62% 121 Municipal Court 148,899 17,456 29,146 102,296 31.30% 131 Town Manager 375,561 - 80,401 295,160 21.41% 133 Community Relations 195,666 18,612 29,004 148,050 24.34% Total General Government 1,212,848 153,415 258,959 800,474 34.00% Human Resources Department: 132 Human Resources 503,153 23,055 75,540 404,558 19.60% Finance & IT Department: 141 Finance 1,021,522 56,313 192,278 772,930 24.34% 143 Information Systems 434,262 48,817 131,451 253,994 41.51% 149 Nondepartmental 497,254 141,684 236,283 119,287 76.01% Total Finance & IT 1,953,038 246,814 560,012 1,146,212 41.31% Total General Gov't Departments 3,669,039 423,284 894,511 2,351,244 35.92% Community Development: 212 Planning 281,940 15,861 53,535 212,543 24.61% 213 Building Inspection 151,049 2,635 31,562 116,852 22.64% 215 Town Produced Events 243,760 10,559 52,979 180,222 26.07% 216 Signature Event Seed Funding 400,000 54,000 120,315 225,685 43.58% 217 Community Grants 161,000 - 111,500 49,500 69.25% 218 Salute to the USA 97,000 - - 97,000 0.00% Total Community Development 1,334,749 83,055 369,891 881,803 33.93% Police Department: 311 Administration 775,392 34,940 164,982 575,470 25.78% 312 Patrol 2,570,770 70,966 612,670 1,887,134 26.59% 313 Investigations 285,767 600 66,315 218,852 23.42% Total Police 3,631,929 106,506 843,968 2,681,456 26.17% Public Works: 412 Engineering 283,636 1,375 53,073 229,188 19.20% 413 Roads and Bridges 2,362,984 89,495 509,031 1,764,458 25.33% 415 Parks 671,517 155,065 166,309 350,143 47.86% 418 Buildings & Facilities 1,194,952 73,661 297,598 823,693 31.07% Total Public Works 4,513,089 319,596 1,026,011 3,167,482 29.82% Recreation Department: 514 Administration 237,063 8,402 73,839 154,822 34.69% 515 Adult Programs 61,906 - 17,156 44,750 27.71% 516 Aquatics 542,219 17,316 146,223 378,680 30.16% 518 Fitness 144,227 - 85,611 58,616 59.36% 519 Guest Services 325,124 2,418 76,637 246,069 24.32% 521 Youth Programs 149,536 - 24,672 124,864 16.50% 523 Community Swim Program 57,319 - 4,548 52,771 7.93% Total Recreation 1,517,394 28,135 428,686 1,060,573 30.11% TOTAL OPERATING EXPENDITURES 14,666,200$ 960,576$ 3,563,066$ 10,142,558 30.84% Department Expenditure Summaries General FundMarch 2018 Expenditures to Date Dept./Div. 2018 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES Public Works: 434 Fleet Maintenance 1,693,973$ 74,892$ 409,783$ 1,209,298$ 28.61% Total Operating Expenditures 1,693,973 74,892 409,783 1,209,298 28.61% TOTAL EXPENDITURES 1,693,973$ 74,892$ 409,783$ 1,209,298$ 28.61% Expenditure Summary Fleet Maintenance Enterprise Fund March 2018 Expenditures to Date Dept./Div. 2018 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES 431 Transit Administration 271,617$ 21,688$ 70,020$ 179,909$ 33.76% 432 Transit Operations 1,258,194 749 397,213 860,232 31.63% 436 Wash Bay 157,973 2,192 49,266 106,515 32.57% Total Operating Expenditures 1,687,784 24,629 516,498 1,146,656 32.06% TOTAL EXPENDITURES 1,687,784$ 24,629$ 516,498$ 1,146,656$ 32.06% Expenditure Summary Transit Enterprise Fund March 2018 Expenditures to Date 1 May 1, 2018 Meeting Abstract Planning & Zoning Commission Meeting Abstract Tuesday, May 1, 2018 I. Call to Order – The meeting was called to order at 5:00pm. II. Swearing in of new Commissioner Alex Dammeyer III. Roll Call – All commissioners were present with the exception of Commissioners Howell and Golembiewski. IV. Additions & Amendments to the Agenda V. Conflicts of Interest VI. Major Development Plan and Alternative Equivalent Compliance – 4254 Wildridge Road West - CONTINUED PUBLIC HEARING File: MJR18002 and AEC18002 Legal Description: Lot 21A Block 3 Wildridge Applicant: Jeff Manley Summary: Proposal to construct a new single-family house. This project requires an Alternative Equivalent Compliance application for the roof pitch under 4:12. The applicant requested this item be continued to the May 15, 2018 PZC meeting. Action: Commissioner Barnes motioned to continue the items to the May 15, 2018 meeting. Commissioner Glaner seconded the motion and the motion carried unanimously 5-0. VII. Major Development Plan and Alternative Equivalent Compliance– 4561 Flat Point - PUBLIC HEARING File: MJR18004 and AEC18005 Legal Description: Lot 32 Block 3 Wildridge Applicant: Jeff Manley Summary: Proposal to construct a new single-family house. This project requires an Alternative Equivalent Compliance application for the roof pitch under 3:12. Action: Commissioner Barnes motioned to continue case #MJR18004 pending additional information for the AEC application. Commissioner Nusbaum seconded the motion and it carried unanimously 5-0. Commissioner Barnes motioned to continue case #AEC18005 pending additional information. Commissioner Nusbaum seconded the motion and it carried unanimously 5-0. VIII. Action on Records of Decision • MJR18001 and AEC18001 – 4254 Wildridge Road Wests Action: Commissioner Nusbaum motioned to approve the record of decision. Commissioner Barnes seconded the motion and it carried unanimously 4-0 with Commissioner Dammeyer abstaining. • REZ18003 – Colorado World Resorts Action: Commissioner Nusbaum motioned to approve the record of decision. Commissioner Barnes seconded the motion and it carried unanimously 4-0 with Commissioner Dammeyer abstaining. 2 May 1, 2018 Meeting Abstract IX. Action on Meeting Minutes • April 17, 2018 PZC Minutes Action: Commissioner Nusbaum motioned to approve the record of decision. Commissioner Barnes seconded the motion and it carried unanimously 4-0 with Commissioner Dammeyer abstaining. X. Staff Updates • PZC Homework – read and review 15.28 Sign Code • May 15 Training Session with Town Attorney XI. Adjourn