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TC Ord. No. 19-03 Approving Amendments to Title 7 of the Avon Municipal Code for Inclusionary Housing RegulationsTOWN OF AVON ORDINANCE 19-03 APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE FOR INCLUSIONARY HOUSING REGULATIONS RECITALS WHEREAS, the Avon Town Council ("Town Council") initiated a code text amendment application ("Application") to amend the text of the Avon Development Code ("ADC') in accordance with ADC §7.16.040, Code Text Amendment; WHEREAS, the Avon Planning & Zoning Commission ("PZC") held public hearings on February 5, 2019 and February 19, 2019, after publishing and posting notice as required by law, considered all comments, testimony, evidence and staff reports provided by the Town staff prior to formulating a recommendation; WHEREAS, after conducting the noticed Public Hearings, PZC made the required findings to recommend approval of the Application to the Town Council; 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; WHEREAS, pursuant to the home rule powers of the Town, the Town Council has the power to adopt Health and Safety Codes, and make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the comfort, and convenience of its inhabitants; WHEREAS, the Town Council held public meetings on March 12, 2019, April 9, 2019, and May 14, 2019 to consider the Application and first reading; WHEREAS, the Town Council held Public Hearings on May 28, 2019 and June 11, 2019, after posting notice as required by law, considered all comments, testimony, evidence, Planning and Zoning Commission recommendations, and staff reports prior to taking action on the Application; WHEREAS, the Town Council finds that changes to Employee Housing Mitigation provides a method of delivering more Community Housing choices to residents and workers in the Town; WHEREAS, the Application was reviewed with the criteria listed in ADC §7.16.040(c), Review Criteria, and are found to be in substantial compliance; WHEREAS, the Application promotes and implements the goals and policies of the Avon Comprehensive Plan, including but not limited to implementation of the Avon Community Housing Plan by providing inclusionary housing requirements for new development; WHEREAS, former Lot C, Avon Center at Beaver Creek Subdivision, provided twenty (20) community housing units as part of the Sheraton Mountain Vista PUD in 2000 to serve all of former Lot C, and the Town Council desires to acknowledge the previous community housing Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 1 of 8 construction and provide a credit for housing mitigation for additional development on Lots 2A, 213, 3 and 5 of Mountain Vista Resort Subdivision; and WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town Council desires to comply with state law, the Avon Home Rule Charter and the ADC 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 the proposed Application. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Avon Town Council. Section 2. Amendment to Section 7.08 - Definitions. is hereby amended to read as follows with underline indicating language to be adopted: Community Housing means residential housing which is subject to a deed restriction that limits use to long-term residential use as a primary residence by qualified persons and which deed restriction may impose other restrictions and limitations and may include terms deemed appropriate in the Town's discretion including but not limited to controls on the resalerip 'ce of such residential property, and which deed restriction is enforceable by the Town. Eagle Valley means the area between Vail Redcliff, and Dotsero• not including Burns Bond or McCoy. Property Management is a land use category for development that is a hybrid of a condominium and hotel, by being operated as a commercial hotel even though the units are individually owned. Residential use means the use of a building or other structure as a dwelling Section 3. Amendment to Section 7.20.100 - Employee housing mitigation. is hereby amended to read as follows, with c*�e out indicating language to be deleted and underline indicating language to be adopted: (a) Purpose. The purpose of this Section is to create housing for workers generated by new development in Avon, which is affordable to Eagle Valley workers. This is accomplished through the creation of Employee Housing Mitigation units deed restricting existing housing units payment of fees based on the number of workers created by development and/or exempting Community Housing projects. (b) Applicability. This Section shall apply to new multi -family residential Q or more units), commercial, accommodation units, industrial and other non-residential development within the Town. This Section applies to all entities, including private and non-profit entities. (c) Exemptions. Development within Existing Structures and Changes in Use for Remodeling. Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 2 of 8 Remodeling of an existing use or the change from one use to another is exempt from the requirements of this Section, provided such activity does not create additional employment generation as determined by Table 7.20-14, below. Only the uses and floor areas that existed prior to the remodeling shall be exempt from the requirements of this Section. Any new floor area or any change in use which creates additional employee generation as determined by Table 7.20-14 shall be subject to the provisions of this Section. Governmental projects and housing projects constructing Community Housing are exempt from this section. Properties with preexisting vested rights are exempt from these requirements. Projects with current Development Plan approvals that are valid on July 11, 2019, and/or extended pursuant to Section 7.16.010(g). (d) Employee Housing Mitigation Fonnulas. When phew le ^ pleye^ housing mitigatioll s'��" be pfevided ; accor-danee with those standards - To determine the amount of Employee Housing Miti atg ion that must be provided, the following job generation, em ^getmation, and mitigation rate formulas shall be used: Table 7.20-14 Employee Housing Mitigation Formulas Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 3 of 8 Factor Calculation Commercial Size of development Leasable square feet jobs genera Workers Re uired 2.8 per 1,000 sq. ft. Rate x sq. ft./1,000 >~'„,p7^.,00s ,.o„o,.,,.0,7 1.2 obs per- employee T^>,� ,.o r.,�oa Workers generat per Em to ee Generated/1.2 Units ..o^,,;, 0 7 X20/o 0 atiHatiseholds mitigon Jobs generated Required mitigation x 4-20% Lodging and Property Management Size of development # of rooms or # of units Lodge/hotel - # of rooms x 0.8 jobs genefa 0.8/ room; Prop. management - # of units x 0.4 Workers Required 0.4/ unit Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 3 of 8 E,,,,,,..00s Jobs per em generate to ee 1.2 jobs per employee ,,,, ,.o�oto,, Workers Generated/1.2 Households gener Number of 1.8 ernpleyees-�� Employees geiierated/ 1A Required mitigation X20%mitigation Households Workers generated x 4-20% Residential Size of development Studio # of Dwellin Units Workers Required 1 bedroom .33 per Dwellin Unit # of units x 0.33 Jobs Per Employee 900 1.2 Workers Generated/1.2 Re uired mitigation 3.5 20% mitigation Workers Generated x 20% Note. The required Note. ---- -- 1...--" employee —mr-"J 1, t' t' -- --......,...b mitigation .,...s.. whole number, 1, ll b ,, ., � the t v� ava.a..u.0 �� a.ai� nearest (e) Methods of Employee Housing Mitigation. (1) General Requirements. All Employee Housing Mitigation units shall be subject to a deed restriction acceptable to the Town and enforceable by the Town which limits occupancy of Employee Housing_ Mitigation units to persons with full-time employment in Eagle County. (2) For any of the following methods of producing Employee Housing Mitigation all proposed units shall comply with the minimum size requirements shown in Table 7.20-15, and all applicable design requirements. Table 7.20-15 Minimum Size of Housing Units No Credit Given: If the residential square footage of the proposed Employee Housing Mitigation unit(s) is in excess of the minimum required residential square footage the additional residential square footage shall not be eligible for use as any form of future credit or for the Employee Housing Mitigation. (f) Priorities for Employee Housing Mitigation. The following options for Employee Housing Mitigation are listed in order of preference regarding the he types of unit(s) created: Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 4 of 8 Minimum Number of T e Size of Unit Employees (Square Housed Foota e Studio 500 1.25 1 bedroom 750 1.75 2 bedrooms 900 2.25 3 or more bedrooms 1,225 3.5 No Credit Given: If the residential square footage of the proposed Employee Housing Mitigation unit(s) is in excess of the minimum required residential square footage the additional residential square footage shall not be eligible for use as any form of future credit or for the Employee Housing Mitigation. (f) Priorities for Employee Housing Mitigation. The following options for Employee Housing Mitigation are listed in order of preference regarding the he types of unit(s) created: Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 4 of 8 (1) Construction of Employee Housing Mitigation unit(s) on the site on which the development is proposed. (2) Construction of deed restricted Employee Housing Mitigation unit(s) within the Town, provided such land, site or structure has not been previously deed -restricted to employ or affordable housing by any party. (3) Construction of Employee Housing, Mitigation unit(s) outside the Town but within the Eagle Valley, provided such land, site or structure has not been previously deed -restricted to employee or affordable housing by any party. Prior to construction of such unit(s), consent of the relevant jurisdiction or homeowner's association (if required) to placement of a deed restriction on the unit(s) must be obtained, in addition to any required land use approvals. Units outside of the Town must be within the 80% - 140% AMI range, as defined by the Avon Comprehensive Plan, within the Up or Mid Valley, as defined by the Eagle River Valley Housing Needs and Solutions plan. Units constructed shall be valued at .75 of the applicable required Employee Mitigation rate. (41 Deed restricting existing free market unit(s) within the Town or the Eagle Valley. As a condition of approval when the deed restriction of existing free market unit(s) is proposed, the Applicant must obtain the approval of the Town for the specific unit(s) and the deed restriction agreement language for the unit(s) to be deed restricted. The Applicant must demonstrate to the satisfaction of the Town that: a. the long-term affordabilityoproposed Employee Housing Mitigation units is adequately protected, considering issues including but not limited to longterm maintenance and homeowner's assessments, and b. the affected property does not prohibit the type of housing proposed. The Town may request additional information about the proposed unit(s) as reasonable to make such a determination. Such approval may contain provisions to ensure that any Employee Housing Mitigation unit(s) subject to a deed restriction meets long term standards for maintenance and affordability. ii. Employee Housing Mitigation units outside of the Town must be within the 80% - 140% AMI range, as defined by the Avon Comprehensive Plan, within the Up or Mid Valley, as defined by the Eagle River Valley Housing Needs and Solutions plan. iii. Deed restricted units outside of the Town shall be valued at .75 of the required Employee Housing Mitigation rate. (5) Fees -in -lieu, as defined by Town Council resolution and updated eveKy two years, may be provided only for any fractional remainder of the Employee Mitigation requirement generated under this Section totaling less than 1.0 employee, subject to the following requirements: Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 5 of 8 Time of Payment and Use of Funds. Payment of the fee in -lieu shall be made to the Town prior to the issuance of any Certificate of Occupancy or Temporary Certificate of Occupancyfor free market portion of the development. Interest Bearina Account. The Town shall transfer the funds to an interest-bearine account. iii. Authorized Uses of Fees. The funds, and any interest accrued, shall be used only for the purpose of planning for, subsidizing, or developing Community Housing_ (g) Mitigation plan required. The Mitigation plan shall include the following (1) Calculation and method. The calculation of, and method by which Employee Housing Mitigation units are to be provided, in compliance with Table 7.20-14 and Section 7.20. 1 00(d). (2) Unit Descriptions. If deed restricted Employee Housing Mitigation units are to be developed, a site plan and building floor plans (if applicable), illustrating the number of units proposed, their location, the number of bedrooms, gross floor area of each unit, and the rental/sale mix of the development. (3) Timing of review/amendments. The Employee Housing Mitigation plan shall be submitted to and approved by the Town Council prior to, or concurrent with, application to the Town for the free market portion of the initial development plan. Review and approval of plans by the Town Council for construction of Employee Housing Mitigation shall be prior to, or concurrent with, the free market portion of the development plan. Any amendment to an approved Employee Housing Mitigationplan shall require subsequent Town Council approval. (h) Certification of Action. The Town Council shall certifythe he approval, approval with conditions, or denial of the Employee Housing Mitigation plan, or of an amendment thereto. Such approval, approval with conditions, or denial shall be based on compliance with the provisions of this Chapter. Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 6 of 8 Section 4. Sheraton Mountain Vista. Town acknowledges the housing provided previously as part of the Sheraton Mountain Vista Planned Unit Development and adopts the interpretation that previously constructed housing provides a total of 27.36 employee housing credits, and that a balance of 25.58 employee housing credits shall be available to be applied to satisfy employee housing mitigation requirements for development of Lots 2A, 213, 3 and 5, Mountain Vista Resort Subdivision. Section 5. Codification of Amendments. The codifier of the Town's Municipal Code, Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any typographical error in the enacted regulations, provided that such correction shall not substantively change any provision of the regulations adopted in this Ordinance. Such corrections may include spelling, reference, citation, enumeration, and grammatical errors. Section 6. 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 would have 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. Section 7. 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 8. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public 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 9. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. Ord. 19-03 — Amending Avon Municipal Code SECOND READING — June 11, 2019 Page 7 of 8 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on May 14, 2019 and setting such public hearing for Junc 11, 2019 at the Council Chambers of the Avon Municipal Building, located at One Hwidred Mikael3 Way, Avon, Golor3do. BY:; r!�i�" SarahSmith Hymcs, Ma4- 3 ATTEST: 0 Brenda Torics, own ADOPTED ON SECOND AND FINAL READING on June 1 1, 2019- BY1 Sarah Srnith Hymns, A P�P R,%f P D A 0-F0R1NL-,---- M-Sellas, Town Attorney. Ord. 19-03 - Amending Avon MORkIP21 Code SECOND READNG - June it. 2019 pate S 0( a :SEAL* ATTEST: �A OF 0 r �P4 Brenda Torres, Tovm SEAL C c