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TC Packet 06-11-2019 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, JUNE 11, 2019 MEETING BEGINS AT 5:05 PM AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECI AL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE M EETING, CALL TOWN CLERK BRENDA TORRES AT 970-748-4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL RE QUESTS. 1 AVON LIQUOR LICENSING A UTHORITY MEETING BEGINS AT 5:00 PM (SEE SEPARATE AGENDA ON PAGE 3) AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:05 PM 1. C ALL TO ORDER AND ROLL CALL 5:05 2. APPROVAL OF A GENDA (MAYOR SMITH HYMES) 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA [A N INITIAL THREE (3) MINUTE LIMIT ALLOWE D TO EACH PERSON WIS HING TO SPEAK . SPEAKER MAY REQUEST M ORE TIME AT THE END OF T HE THREE (3) MINUTES, WHICH MAY BE APPROV ED BY A MAJORITY OF THE COUNCIL .] 5:10 4. BUSINESS ITEMS 4.1. P RESENTATION: LEED GOLD CERTIFICATION OF AVON TOWN HALL (TOWN ENGINEER JUSTIN HILDRETH) (5 MINUTES) 5:15 4.2. CONSENT A GENDA (5 MINUTES) 5:20 4.2.1. APPROVAL OF NOTICE OF AWARD FOR RIVERFRONT TRAIL PROJECT (TOWN ENGINEER JUSTIN HILDRETH) 4.2.2. APPROVAL OF MINUTES FROM MAY 28, 2019 REGULAR COUNCIL MEETING (TOWN CLERK BRENDA TORRES) 4.3. PUBLIC HEARING: SECOND READING ORDINANCE 19-01 AMENDING THE AVON MUNICIPAL CODE TO AUTHORIZE FEE WAIVERS AND TAX EXEMPTIONS FOR COMMUNITY HOUSING PROJECTS (TOWN MANAGER ERIC HEIL ) (15 MINUTES) 5:25 4.4. PUBLIC HEARING : SECOND READING ORDINANCE 19-03 APPROVING CODE TEXT AMENDMENTS FOR INCLUSIONARY HOUSING REQUIREMENTS (PLANNING D IRECTOR MATT PIELSTICKER ) (15 MINUTES) 5:40 4.5. PUBLIC HEARING : SECOND R EADING ORDINANCE 19-04 AMENDING SECTION 9.12.080 OF THE AVON MUNICIPAL CODE TO AUTHORIZE TOWN COUNCIL AND TOWN MANAGER TO DESIGNATE EVENTS THAT ALLOW PERSONS OVER TWENTY-ONE YEARS OF AGE TO BRING AND CONSUME ALCOHOL BEVERAGES ON TOWN PROPERTIES (TOWN MANAGER ERIC HEIL) (10 MINUTES) 5:55 4.6. EXECUTIVE SESSION FOR THE P URPOSE OF DETERMINING POSITION RELATIVE TO MATTERS THAT MAY BE SUBJECT TO NEGOTIATIONS AND DEV ELOPING STRATEGIES F OR NEGOTIATIONS CONCERNING POTENTIAL TOWN ATTORNEY CANDIDATES PURSUANT TO C.R.S. §24-6-402(2)(E) (135 MINUTES) 6:05 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, JUNE 11, 2019 MEETING BEGINS AT 5:05 PM AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECI AL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE M EETING, CALL TOWN CLERK BRENDA TORRES AT 970-748-4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL RE QUESTS. 2 5. WRITTEN R EPORTS 5.1. ABSTRACT FROM JUNE 4, 2019 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT P IELSTICKER) 5.2. UPPER EAGLE REGIONAL WATER AUTHORITY MAY 23, 2019 MEETING SUMMARY (MAYOR SMITH HYMES) 6. MAYOR & COUNCIL C OMMENTS & MEETING UPDATES (15 MINUTES) 8:20 7. A DJOURNMENT 8:35 _________________________________________________________________________________________________________________________________________________________________________________________________________ *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 o n 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 i tem, 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. FUTURE AGENDAS: June 25, 2019: Council Retreat during day: Review of 2019 Strategic Plan and Initial Discussion of 2020 Strategic Plan June 25, 2019: - Review and Action Contribution Request for Eagle County Loan Fund - Action on Resolution 19-XX, Ratifying the Contract Engagement with Avon’s New Town Attorney - Public Hearing: Resolution 19-XX General Fund Budget Amendment - CAFR Presentation - Direction Requested: Avon Road/I70 Underpass - Interviews and Appointment of PZC Member - Review of Styrofoam and Plastic Regulations July 9, 2019: Eagle River Water Quality Improvement Effort Overview AVON LIQUOR LICENSING AUTHORITY MEETING AGENDA TUESDAY, JUNE 11, 2019 MEETING BEGINS AT 5:00 PM AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECI AL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE M EETING, CALL TOWN CLERK BRENDA TORRES AT 970-748-4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL RE QUESTS. 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 [AN INITIAL THREE (3) MINUTE LIMIT ALLOWE D TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROV ED BY A MAJORITY OF THE COUNCIL.] 4. PUBLIC HEARING SPECIAL EVENTS PERMIT 4.1. APPLICANT NAME: TOWN OF AVON EVENT NAME: BENCHES OF AVON KICK OFF EVENT DATE: JUNE 13, 2019; 5:00 P.M. UNTIL 7:30 P.M. LOCATION: 1 LAKE STREET/MAIN STREET MALL EVENT MANAGER: PRESTON NEILL PERMIT TYPE: MALT, VINOUS AND SPIRITUOUS LIQUOR 5. APPROVAL OF THE MINUTES FROM MAY 28, 2019 MEETING 6. WRITTEN REPORT 6.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES) 7. ADJOURNMENT Special Event Liquor Permit – Benches of Avon Kick Off P a g e | 1 LIQUOR LICENSING AUTHORITY REPORT To: Avon Liquor Licensing Authority From: Brenda Torres, Liquor Licensing Authority Secretary Meeting Date: June 11, 2019 Agenda Topic: PUBLIC HEARING for Special Event Permit Application – Benches of Avon Kick Off ACTION BEFORE THE LOCAL LIQUOR LICENSING AUTHORITY The Town Council, acting as the Local Liquor Licensing Authority, will consider a Special Events Permit Application for the upcoming Benches of Avon Kick Off special event. A public hearing is required before final action is taken. Please note that the Town of Avon is acting as the Applicant for this application. Applicant Name: Town of Avon Event Name: Benches of Avon Kick Off Event Date: June 13, 2019; 5:00 p.m. until 7:30 p.m. Location: 1 Lake Street/Main Street Mall Event Manager: Preston Neill Permit Type: Malt, Vinous & Spirituous Liquor PROPOSED MOTION “I move to approve (or deny based upon statutory grounds for denial) the Special Events Permit application for the Benches of Avon Kick Off special event on June 13, 2019.” SUMMARY The Town of Avon, as the Applicant, is applying for malt, vinous, spirituous liquor permit to serve beverages at the Benches of Avon Kick Off special event on June 13, 2019. CRS 12-48-102(2) states, “A special event permit may be issued to any municipality owing arts facilities at which productions or performances of an artistic or cultural nature are presented for use at such facilities, subject to the provisions of this article.” The Applicant has submitted the appropriate materials required by the State of Colorado Liquor Enforcement Division and all materials are in order. The Main Street Mall premise has been posted with notice of the public hearing for this application. The event manager will be present to answer question about the application. The Applicant has adequate proof of commercial liability insurance that meets the Town’s requirements. The background checks indicated no criminal violations. These documents are on file in the Town Clerk’s office. Special Event Liquor Permit – Benches of Avon Kick Off P a g e | 2 BACKGROUND Special events permits are issued by the Local Licensing Authority to allow particular types of organizations, municipalities, and political candidates to sell, serve or distribute alcohol beverages in connection with public events. Avon has adopted the local option whereby applications are made directly to the Avon Local Licensing Authority. Special event permits may only be issued for prescribed hours on a single day. A nonprofit entity and the Town of Avon may receive a maximum of 15 special event permits per calendar year. There is no required finding for the issuance of a special event permit. CRS §12-48-106 states the grounds for denial of a special event permit application as follows: “The state or local authority may deny the issuance of a special event permit upon the grounds that the issuance would be injurious to the public welfare because of the nature of the special event, its location within the community, or the failure of the applicant in a past special event to conduct the event in compliance with applicable laws.” SPECIAL EVENTS PERMIT APPLICATIONS ATTACHMENTS: The Applicant for the special event permit has submitted the following materials: ✓ Application for a Special Event Permit (State form DR 8439) ✓ Alcohol Management Plan ✓ Diagram where liquor will be served TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, MAY 28, 2019 AVON TOWN HALL, 100 MIKAELA WAY Page 1 1.CALL TO ORDER AND ROLL CALL Chairwoman Smith Hymes called the meeting to order at 5:0 1 p.m. A roll call was taken and Board members present were Amy Phillips, Scott Prince, Jennie Fancher, Tamra Underwood, and Jake Wolf. Board member Chico Thuon was absent. Also present were Town Manager Eric Heil, Police Chief Greg Daly, Recreation Director John Curutchet, , Mobility Director Eva Wilson, Deputy Town Manager Preston Neill and Secretary Brenda Torres. 2.APPROVAL OF AGENDA There were no changes to the agenda. 3.PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA No public comments were made. 4.REPORT OF CHANGE – MODIFICATION OF PREMISES 4.1. APPLICANT: SOUTHSIDE BENDERZ LLC D/B/A SOUTHSIDE BENDERZ LOCATION: 182 AVON ROAD SUITE 208 MANAGER: NOAH BENDER Chairwoman Smith Hymes opened the public hearing and no comments were made. Board member Underwood moved to approve the Modification of Premises application for Southside Benderz LLC d/b/a Southside Benderz. Vice Chairwoman Phillips seconded the motion and it passed unanimously by those present. Board member Chico Thuon was absent. 5.APPROVAL OF THE MINUTES FROM APRIL 30, 2019 MEETING Board member Fancher moved to approve the minutes from April 30, 2019 Liquor Authority Meeting. Vice Chairwoman Phillips seconded the motion and it passed with a vote of 5-0. Board member Underwood abstained from the vote and Board member Chico Thuon was absent. 6.WRITTEN REPORT 6.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES) 7.ADJOURNMENT There being no further business to come before the Board, Board member Underwood moved to adjourn the liquor meeting. Board member Fancher seconded the motion and it passed unanimously by Board members present. Board members Chico Thuon was absent. The time was 5:03 p.m. TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, MAY 28, 2019 AVON TOWN HALL, 100 MIKAELA WAY Page 2 RESPECTFULLY SUBMITTED: ____________________________________ Brenda Torres, Secretary APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips ___________________________________ Jake Wolf ________________________________ Chico Thuon ________________________________ Jennie Fancher ________________________________ Scott Prince ________________________________ Tamra Underwood ________________________________ AVON LIQUOR LICENSING AUTHORITY WRITTEN REPORT To: Avon Liquor Licensing Authority From: Brenda Torres, Liquor Licensing Authority Secretary Date: June 11, 2019 Topic: REPORT ON RECENT ADMINISTRATIVE APPROVALS SUMMARY: The Town’s local liquor licensing regulations allow for administrative review and approval of routine liquor license applications, including: (1) Renewals, (2) Modification of Ownership, (3) Modification of Managers, and (4) Special Event Permits for events already approved by the Town Council. Requirements for administrative approval include that the application is complete, there is no criminal activity on the background and there are no liquor code violations during the last year. Renewals and Special Event Permits require notice to be posted for seven days and require the Town Clerk to accept comments and/or requests for a public hearing before the Avon Town Council. In all cases, the Town Clerk has the discretion to refer the application to the Avon Town Council. The Town Clerk is required to report administrative approvals, which is the reason for this written report. Dating back to May 28, 2019, the Town has received three Special Event Permit Applications that have met all the requirements for administrative review and approval and were ultimately approved by the Town Clerk. No comments, complaints, or request for hearings were received. They are as follows: Special Event Permits: Applicant: Walking Mountains Science Center Event: Vail Valley Brew Fest Dates: June 29, 2019 1200 p.m.-4:00 p.m. Location: 1 Lake Street/Avon Performance Pavilion Manager of Event: Paul Abling Applicant: Eagle Valley Humane Society Event: Salute to the USA Dates: July 3, 2019 4:00 p.m.-10:30 p.m. Location: Avon Nottingham Park Manager of Event: Char Consenica Applicant: Eagle Valley Humane Society Event: Dancing in the Park Dates: August 7, 2019 4:00 p.m.-8:00 p.m. Location: Avon Nottingham Park Manager of Event: Char Consenica TOWN COUNCIL REPORT To: Honorable Sarah Smith Hymes and Avon Town Council From: Justin Hildreth PE, Town Engineer Meeting Date: June 11, 2019 Topic: PRESENTATION OF LEED GOLD CERTIFICATE FOR AVON TOWN HALL The Town recently received the official notice that the Avon Town Hall has received gold certification from the Leadership in Energy and Environmental Design (LEED). LEED is an internationally recognized green certification system that promotes sustainable building and development practices and recognizes projects that implement strategies for better environmental health and performance. The LEED certification system is a globally recognized symbol of sustainability achievement. In April 2016, the Town of Avon purchased the Town Hall building, previously known as the Skier Building, located at 100 Mikaela Way, to house administrative offices, Municipal Court, Council Chambers, meeting rooms and community spaces. Constructed in 2003, the structure stood as a building shell with minimal interior improvements until 2017 when the Town undertook the Town Hall Tenant Finish Project to finish out the building to serve as Town Hall. The building officially opened in October 2018. Sustainable attributes of Avon Town Hall include, but not limited to: • A 28.05 kW of photovoltaic (solar) array as an onsite renewable energy source that generates over 50% of the electricity used in the building. • Water efficient flow and flush fixtures that have helped reduce total indoor potable water usage by 34%, which is equivalent to an estimated 18,675 gallons of water saved annually. • A 36% lighting power reduction. • Approximately 10% of the building’s total building materials content, by value, has been manufactured using recycled content. • A renewable energy contract to supply 100% of the building's electricity from renewable sources for a minimum of two years. • Utilizes the Town’s Heat Recovery System to heat the building. The certification is the result of efforts by the Town of Avon, led by Town Engineer Justin Hildreth, Group14 Engineering, Davis Partnership Architects, FCI Constructors and ME Engineers. TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Justin Hildreth, Town Engineer Date: June 11, 2019 Topic: AUTHORIZATION TO ISSUE NOTICE OF AWARD FOR THE RIVERFRONT TRAIL CONNECTOR PROJECT ACTION BEFORE COUNCIL Authorize Staff to issue Notice of Award for construction of the Riverfront Trail Connector Project, which is included in the 2019 Capital Projects Fund, to Site Resource Management, Inc. RECOMMENDED MOTION “I move to approve issuance of Notice of Award for the Riverfront Trail Connector Project contract to the low bidder, Site Resource Management, Inc. in the amount of $175,725.” BACKGROUND Currently, there is a frequently used social trail from Riverfront Lane to the Eagle Valley Trail along the Eagle River. The social trail is the quickest connection from H.A. Nottingham Park to the Eagle Valley Trail. This trail will replace the social trail with a 379-FT long, 8-FT wide paved path. The project also includes 768-SF of retaining wall, guardrail, bollard light fixtures and xeriscape landscaping. As part of the latest phase of the Riverfront Development, the developer CRP/EWP Riverfront Avon Owner 1, LLC, aka East West Partners, dedicated an easement to the Town to construct this trail. The Eagle River Water and Sanitation District also dedicated an easement to the Town to construct this trail. Staff advertised the Riverfront Trail Connector Project for three weeks and the bid opening was held on June 5, 2019. The following 5 bids were received: Site Resource Management, Inc. $175, 725 Ewing Trucking and Construction, LLC $180,187.35 Icon, Inc. $216,454 RPM Construction, LLC $268,454.57 United Companies $324,496 The bid from Site Resource Management is less than the engineer’s estimate of probable cost of $205,529.50. Construction Schedule: The proposed work could begin as soon as July 8 and be completed by November 1, 2019 and Staff anticipates an approximate six-week construction period. Impacts to traffic during construction are expected to be minimal and outreach to residents, citizens, and emergency services will be coordinated by Staff and the Contractor. ⚫ Page 2 BUDGET The Riverfront Trail Connector Project will be funded by the 2019 Capital Projects Fund and there is $209,303 budgeted for the project. In addition to the $175,725 construction contract, $4,000 is allocated for geotechnical testing services and $10,000 for engineering inspections leaving $19,578 or approximately 9% contingency. Page 1 AVON REGULAR MEETING MINUTES TUESDAY, MAY 28, 2019 AVON TOWN HALL, 100 MIKAELA WAY 1. CALL TO ORDER AND ROLL CALL Mayor Smith Hymes called the meeting to order at 5 :01 p.m. A roll call was taken, and Council members present were Amy Phillips, Jennie Fancher, Tamra Underwood, Jake Wolf and Scott Prince. Council member Chico Thuon was absent. Also present were Town Manager Eric Heil, Police Chief Greg Daly, Finance Director Scott Wright, Planning Director Matt Pielsticker, Mobility Director Eva Wilson, Deputy Town Manager Preston Neill and Town Clerk Brenda Torres. 2. APPROVAL OF AGENDA (MAYOR SMITH HYMES) Town Manager Eric Heil requested an item after Public Comment for Police Chief Greg Daly to provide an update on the recent Wildridge Wildfire Evacuation Exercise. Councilor Prince moved to approve the agenda with the requested addition. Councilor Fancher seconded the motion and the motion passed with a vote of 5-1. Councilor Wolf voted no. Councilor Thuon was absent. 3. PUBLIC COMMENT No public comments were made. ADDED ITEM – UPDATE ON WILDRIDGE WILDFIRE EVACUATION EXERCISE Police Chief Greg Daly gave an update on the recent Wildridge Evacuation Limited-Scale Exercise. Chief Daly answered questions from Council members. 4. BUSINESS ITEMS 4.1. PRESENTATION: FIRST/LAST MILE STRATEGY STUDY UPDATE Jared Barnes, Planning Manager for ECO Transit & Trails, gave a presentation on the Eagle County First/Last Mile Strategy Study. Council members made various comments on this item. 4.2. PRESENTATION OF THE 2018 ANNUAL AUDIT AND MOTION TO ACCEPT Paul Backes with McMahon & Associates, the Town’s independent auditing firm, presented their audit findings to the Avon Town Council. After the presentation of the audit report, Councilor Underwood made a motion to accept the 2018 Comprehensive Annual Financial Report with the edit requested by Councilor Fancher. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 6 to 0. Councilor Thuon was absent. 4.3. RESOLUTION 19-12 APPROVING A CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE (DEPUTY TOWN MANAGER PRESTON NEILL) Councilor Underwood moved to approve Resolution 19-12 Approving a Cultural, Arts and Special Events Committee. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously by Council members present. Councilor Thuon was absent. 4.4. CONTINUATION OF INTERVIEWS OF CULTURAL, ARTS, AND SPECIAL EVENTS COMMITTEE CANDIDATES AND APPOINTMENT OF 7 MEMBERS (DEPUTY TOWN MANAGER PRESTON NEILL) CASE Committee applicants Ruth Stanley and Timothy Haley were interviewed. Council members filled out ballots to determine CASE Committee membership. Page 2 AVON REGULAR MEETING MINUTES TUESDAY, MAY 28, 2019 AVON TOWN HALL, 100 MIKAELA WAY Councilor Underwood made a motion to appoint Jason Denhart, Lisa Mattis, Ruth Stanley and Timothy Haley to the CASE Committee, with terms expiring on February 1, 2021. She further moved to appoint Chris Cofelice, Pedro Campos and Kathy Ryan to the CASE Committee, with terms expiring on February 1, 2020. Finally, she moved to appoint Mayor Pro Tem Amy Phillips and Councilor Jake Wolf as the ex-officio non- voting Council members to the CASE Committee. Mayor Pro Tem Phillips seconded the motion and the motion carried unanimously by Council members present. Councilor Thuon was absent. 4.5. WORKSESSION: COMMUNITY HOUSING EFFORT OVERVIEW (TOWN MANAGER ERIC HEIL) Eric Heil gave an overview of Avon’s Community Housing Plan efforts to date and described potential activities going forward. Council was in support of moving forward with Eric's recommendations regarding the list of Community Housing actions, possibilities and concepts identified in his memorandum. 4.6. PUBLIC HEARING: SECOND READING ORDINANCE 19-03 APPROVING CODE TEXT AMENDMENTS FOR INCLUSIONARY HOUSING REQUIREMENTS (PLANNING DIRECTOR MATT PIELSTICKER) Councilor Prince read an email that was submitted by Avon resident Bette Todd. Mayor Smith Hymes opened the public hearing and no comments were made. Councilor Underwood moved to continue Ordinance 19-03 to the June 11, 2019 Council meeting. Councilor Wolf seconded the motion and the motion passed on a vote of 6 to 0. Councilor Thuon was absent. 4.7. FIRST READING ORDINANCE 19-01 AMENDING THE AVON MUNICIPAL CODE TO AUTHORIZE FEE WAIVERS AND TAX EXEMPTIONS FOR COMMUNITY HOUSING PROJECTS (TOWN MANAGER ERIC HEIL) Mayor Smith Hymes welcomed any comments from members of the public and no comments were made . Councilor Fancher made a motion to approve Ordinance No. 19-01 Amending Chapter 3.08 Sales Tax; Chapter 3.12 Real Property Transfer Tax; Enacting Chapter 3.14 Community Housing Incentives; and Amending Chapter 13.08 Public Services of the Avon Municipal Code. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 6 to 0. Councilor Thuon was absent. 4.8. WORKSESSION: CIVIC PARK PLANNING OVERVIEW (PLANNING DIRECTOR MATT PIELSTICKER) Eric Heil gave an overview of next steps related to planning, design and implementation for “Tract G.” Ryan Sutter gave a presentation to Council on his development idea for the 351 Benchmark Building. Armando Araiza pitched an idea to utilize the old Town Hall and other underutilized Town spaces. 4.9. FIRST READING ORDINANCE 19-04 AMENDING SECTION 9.12.080 OF THE AVON MUNICIPAL CODE TO AUTHORIZE TOWN COUNCIL AND TOWN MANAGER TO DESIGNATE EVENTS THAT ALLOW PERSONS OVER TWENTY-ONE YEARS OF AGE TO BRING AND CONSUME ALCOHOL BEVERAGES ON TOWN PROPERTIES (TOWN MANAGER ERIC HEIL) Mayor Pro Tem Phillips moved to approve first reading of Ordinance No. 19-04 Amending Section 9.12.080 to Authorize Town Council and Town Manager to Designate Events that Allow Persons over Twenty-One Years of Age to Bring and Consume Alcohol Beverages on Town Properties. Councilor Wolf seconded the motion. Mayor Pro Tem Phillips amended her motion to read "move to approve first reading of Ordinance No. 19-04 Amending Section 9.12.080 to Authorize Town Council or Town Manager to Designate Events that Allow Persons over Twenty-One Years of Age to Bring and Consume Alcohol Beverages on Town Properties.” Councilor Wolf accepted the amended motion. The motion passed unanimously by Council members present. Councilor Thuon was absent. Page 3 AVON REGULAR MEETING MINUTES TUESDAY, MAY 28, 2019 AVON TOWN HALL, 100 MIKAELA WAY 4.10. APPROVAL OF MINUTES FROM MAY 14, 2019 REGULAR COUNCIL MEETING (TOWN CLERK BRENDA TORRES) Councilor Prince provided an edit to the minutes. Councilor Fancher moved to approve the minutes with the change provided by Councilor Prince. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 5 to 1. Councilor Wolf voted no and Councilor Thuon was absent. 5. WRITTEN REPORTS 5.1. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT NELLY BURNS) Mayor Smith Hymes asked what the difference is between RETT exemptions for primary residence and RETT exemptions for full exemption. 5.2. UPDATE ON O’NEAL SPUR PARK STRUCTURES (DEPUTY TOWN MANAGER PRESTON NEILL) Councilor Underwood asked where O'Neal Spur Park is located. 5.3. ABSTRACT FROM MAY 21, 2019 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) 6. MAYOR & COUNCIL COMMENTS & MEETING UPDATES Councilor Fancher talked about Habitat for Humanity's Statewide Legislative Building Day on June 27th. She also encouraged the Town to purchase wagons that Nottingham Park Beach patrons can use. Mayor Smith Hymes gave an update about the recent Avon Summer Outlook meeting. Councilor Wolf talked about Avon LIVE! acts and expressed excitement about the special events lineup this summer. He also said Denver will host next year's Music Cities Convention. Mayor Pro Tem Phillips talked about the recent Colorado Creative Industries Summit in Salida, CO. She asked for Town staff and CASE Committee representation at next year's conference. She also talked about the Levitt Pavilion Denver in Ruby Hill Park. 7. EXECUTIVE SESSION FOR THE PURPOSE OF DETERMINING POSITION RELATIVE TO MATTERS THAT MAY BE SUBJECT TO NEGOTIATIONS AND DEVELOPING STRATEGIES FOR NEGOTIATIONS CONCERNING POTENTIAL TOWN ATTORNEY CANDIDATES P URSUANT TO C.R.S §24-6-402(2)(E) Mayor Smith Hymes moved to convene into Executive Session for the purpose of determining positions relative to matters that may be subject to negotiations and developing strategies for negotiations concerning potential Town Attorney candidates pursuant to C.R.S §24-6-402(2)(E). Mayor Pro Tem Phillips seconded the motion and the motion carried unanimously by Council members present. Councilor Thuon was absent. Executive Session began at 9:28 p.m. Executive Session ended at 9:50 p.m. 8. ADJOURNMENT Mayor Pro Tem Phillips moved to adjourn the regular meeting. Councilor Fancher seconded the motion and the motion passed unanimously by Council members present. Councilor Thuon was absent. The time was 9:50 p.m. Page 4 AVON REGULAR MEETING MINUTES TUESDAY, MAY 28, 2019 AVON TOWN HALL, 100 MIKAELA WAY These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: Brenda Torres, Town Clerk APPROVED: Sarah Smith Hymes Amy Phillips Jake Wolf Chico Thuon Jennie Fancher Scott Prince Tamra N. Underwood Report re: Ordinance No. 19-01 Community Housing Tax and Fee Waivers Page 1 of 2 TOWN MANAGER REPORT TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Ordinance No. 19-01 Community Housing Tax and Fee Waivers DATE: June 5, 2019 SUMMARY: Council approved first reading of Ordinance No. 19-01 on May 28, 2019. Ordinance No. 19- 01 is presented to Council on second and final reading. Council must conduct a public hearing on second reading of an ordinance in accordance with the Avon Home Rule Charter. PRIOR MEMORANDUM: This memorandum provides a follow-up to the March 12, 2019 Council discussion of Ordinance No 19-01 Community Housing Incentives. The materials presented on February 26, 2019 were resubmitted to Council for the March 12, 2019 Council meeting along with a complete copy of the Avon Community Housing Plan adopted at the end of last year. Council had some questions and concerns, particularly with regard to increasing the Real Estate Transfer Tax (RETT) exemption for primary residents. Due to a desire for additional discussion of increasing the primary residence RETT exemption, this provision has been removed from Ordinance No. 19-01. Additionally, the Community Housing incentive for the Town’s water tap fee has been revised to only allow for a deferment of the required payment. The actual terms of deferment (duration, interest rate, etc.) would be determined at the time of approving incentives for a specific Community Housing project. BACKGROUND: Avon Council adopted Avon’s first Community Housing Plan last December. The Community Housing Plan adopted a Work-Plan that included the task “Formalize Fee Waiver Program”. Ordinance No. 19-01 would accomplish this goal by formalizing the eligibility, procedure and review criteria to waive Town taxes and fees for Community Housing Projects. AVON WATER TAP FEE: Ordinance No. 19-01 is revised to not allow waiver of Avon’s water tap fee. The common approach to utility fees is to permit a deferment of the fees and permit payment over a 5 to 20 year period. Waiver of utility fees is generally discouraged and avoided because waiver of a portion of fees can result in the increased costs for other utility users. Utility fees are based on infrastructure costs divided equally amongst users. Metropolitan Districts and Title 32 Districts are legally prohibited from waiving utility tap fees. Avon may have the discretion to consider this option as a home rule community, but the practice of waiving water tap fees would be highly irregular and is not recommended. FINANCIAL CONSIDERATIONS: Based on rough analysis provided in my February 6, 2019 memorandum the cost to Town in tax and fee revenue not received is approximately $14,000 for a two bedroom, 1,000 sq.ft. residence (calculated with Avon deferring, and not waiving, water tap fees). INCREASING PRIMARY RESIDENT RETT EXEMPTION: Increasing the RETT exempt for primary residents presented some transactional complications and questions about impacts and consequences to the Town’s budget. This potential code change can be addressed and discussed as a future separate ordinance. HOUSING INCENTIVE: I and Town staff have been approached by several potential investors and developers of housing projects throughout this calendar year. The adoption and formalization of the tax Report re: Ordinance No. 19-01 Community Housing Tax and Fee Waivers Page 2 of 2 and fee waivers for Community Housing is not a final act and is not an immediate “but for” action that will enable a specific project to go forward, but it would send the signal that Avon Town Council’s policy is to consider waiver of taxes and fees for Community Housing projects and would provide an orderly procedure for reviewing such proposals. MOTIONS: “I move to approve Ordinance No. 19-01 Amending Chapter 3.08 Sales Tax; Chapter 3.12 Real Property Transfer Tax; Enacting Chapter 3.14 Community Housing Incentives; and Amending Chapter 13.08 Public Services of the Avon Municipal Code.” Thank you, Eric ATTACHMENTS: Attachment A: Ord 19-01 Attachment B: February 7, 2019 Memorandum and March 6, 2019 memorandums Attachment C: Redline of AMC 3.12.060 RETT Exemption revisions Ord. 19-01 May 28, 2019 FIRST READING Page 1 of 7 TOWN OF AVON, COLORADO ORDINANCE NO. 19-01 AMENDING CHAPTER 3.08 SALES TAX; CHAPTER 3.12 REAL PROPERTY TRANSFER TAX; ENACTING CHAPTER 3.14 COMMUNITY HOUSING INCENTIVES; AND AMENDING CHAPTER 13.08 PUBLIC SERVICES OF THE AVON MUNICIPAL CODE WHEREAS, the Town of Avon, Colorado (the “Town”) is a home rule municipality and political subdivision of the State of Colorado (the “State”) organized and existing under a home rule charter (the “Charter”) pursuant to Article XX of the Constitution of the State; and WHEREAS, pursuant to C.R.S. §31-15-103 and §31-15-104, and pursuant to the home rule powers of the Town of Avon (“Town”), the Town Council has the power to make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of its inhabitants; and WHEREAS, Council adopted the Town of Avon Community Housing Plan on December 13, 2018, which included a policy to “formalize a fee waiver/reimbursement process” and which included an Appendix A: Avon Community Housing Plan – Work Plan that contemplated formalizing a Fee Waiver Program; and WHEREAS, Council adopted the Town of Avon Comprehensive Plan which includes Policy E.1.3: which states in part, “Provide attainable housing through alternative means, including . . . waiver of development and building fees, . . .”; and WHEREAS, the Avon Town Council finds that amendments to the Avon Municipal Code will promote the health, safety and general welfare of the Avon community; and WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that the Town Council desires to comply 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. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 2 of 7 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. Enactment of Section 3.08.036 – Tax credit for community housing. A new Section 3.08.036 of the Avon Municipal Code is hereby enacted to read as follows: “3.08.036 – Tax credit for community housing. Notwithstanding any other provision of this Chapter, there shall be granted a sales tax credit to each person owing tax on the sale of building materials and fixtures used in a community housing project provided that such sales tax credit is approved by Council by resolution in accordance with Chapter 3.14. Neither the ability of the Town to grant this tax credit nor the repeal or termination of this tax credit shall constitute a tax increase, the imposition of a new tax or a tax policy change.” Section 3. Amendment of Section 3.12.060 – Exemptions. Section 3.12.060 of the Avon Municipal Code is hereby amended to recodify Section 3.12.060(17) as Section 3.12.060(14); to recodify and amend Section 3.12.060(14) to Section 3.12.060(15) to read as set forth in this section; to recodify Section 3.12.060(15) to Section 3.12.060 (17); to recodify Section 3.12.060(16) to Section 3.12.060(18); to enact a new Section 3.12.060(16); such that Sections 3.12.060(14) through (18) shall read as follows: “3.12.060 (14) 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. (15) Any sale or conveyance of real property or improvements for the purpose of constructing or otherwise providing Community Housing as defined in Chapter 3.14; provided, that the parties to the transaction shall apply to the Town Council for the exemption prior to the occurrence of the transaction from which exemption is sought in accordance with Chapter 3.14 Community Housing Incentives and that the property shall be subject to a deed restriction that protects and maintains the Community Housing for the benefit of the Town. (16) Transfers of Community Housing, as defined in Section 3.14.020, subject to a deed restriction to qualified purchasers provided that the deed restriction that protects and maintains such Community Housing for the benefit of the Town is in compliance with all terms and conditions. (17) 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; Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 3 of 7 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 (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. (18) 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(17) and the applicant has satisfied the conditions of subsection (17)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(17) 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 Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 4 of 7 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. Section 4. Enactment of Section 3.14 – Community Housing Incentives. Section 3.14 of the Avon Municipal Code is hereby enacted to read as follows: “3.14 Community Housing Incentives. 3.14.010. Purpose. Council may elect to promote Community Housing through the use of Community Housing Incentives, including the credit, exemption or waiver of taxes or fees otherwise applicable to residential development. 3.14.020. Definitions 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 resale price of such residential property, and which deed restriction is enforceable by the Town. Community Housing Incentive means a tax and/or fee credit, exemption, waiver or refund approved in accordance with this Chapter 3.14. 3.14.030. Approval by Resolution. Any credit, exemption or waiver of taxes or fees shall be approved by Council by resolution. The resolution shall include the following minimum elements: (1) The Community Housing project shall be defined by location, type of residential units, and quantity of residential units; (2) The taxes and/or fees that are subject to a credit, exemption and/or waiver shall be defined, and may be apportioned for development project that includes both community housing and non-community housing elements; (3) The form of the deed restriction that shall protect and maintain such Community Housing for the benefit of the Town shall be included with the resolution and the resolution shall accept or authorize the acceptance and execution of deed restriction; (4) The resolution shall include a finding that the tax and/or fee credits, exemptions and/or waivers are necessary to promote community housing that meets a current or projected housing need for the Avon community; and, (5) The resolution shall include a finding of public benefit for providing such tax and/or fee credit, exemption and/or waiver. Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 5 of 7 3.14.040. Sales Tax. Council may provide a tax credit for the amount of sales tax imposed upon building materials and fixtures delivered, installed and/or consumed in Community Housing projects. Council may determine to provide a partial tax credit as determined appropriate by Council for buildings with mixed Community Housing and commercial uses and/or residential projects with mixed Community Housing and free-market dwelling units. Neither the ability of the Town to grant this tax credit nor the termination of this tax credit shall constitute a tax increase, the imposition of a new tax or a tax policy change. 3.14.050. Real Property Transfer Tax. Council may provide an exemption for the real property transfer tax on property that is conveyed to construct or otherwise provide a Community Housing project. Council may determine to provide a partial tax credit as determined appropriate by Council for buildings with mixed Community Housing and commercial uses and/or residential projects with mixed Community Housing and free-market dwelling units. 3.14.060. Development Code Fees. Council may provide a waiver, refund or reimbursement of Development Application review fees that are required pursuant to Title 7 Avon Development Code. The cost for third party consultants and professionals, studies and reports are not included in the Development Application review fees that can be waived, refunded or reimbursed under this Chapter 3.14. 3.14.070. Avon Water Tap Fees. Council may allow the tap fees to be credited towards the cost of required water line upgrades or extensions, may allow deferment of water tap fee payment, or may allow a combination of credit and/or deferment of tap fees that are required pursuant to Chapter 13.08 – Rates and Charges of Title 13 – Public Services. 3.14.080. Building Permit fees. Council may provide a waiver of Plan Review and Building Permit fees that are required pursuant to Title 15 Building Code.” Section 5. Amendment of Section 13.08.030 – Classification of customers. Section 13.08.030 of the Avon Municipal Code is hereby amended to enact a new sub-section (4) to read as follows: “(4) Community Housing. Residential use which meets the definition of Community Housing set forth in Section 3.14.020.” Section 6. Enactment of Section 13.08.045 – Tap fee waiver for Community Housing. A new Section 13.08.045 of the Avon Municipal Code is hereby enacted to read as follows: “13.08.045 – Tap fee deferral for community housing. Town Council may defer tap fees for residential units in a community housing project pursuant to the procedures set forth in Chapter 3.14.” Section 7. Codification 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 Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 6 of 7 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 8. Interpretation. This Ordinance shall be interpreted and applied to comply in all respects with Article X, Section 20, of the Colorado Constitution, in its application to any person or circumstance and no part of this Ordinance shall be interpreted or applied to constitute a tax policy change that would require voter approval. Section 9. Non-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 or held to be in conflict with Article X, Section 20, of the Colorado Constitution, such invalidity or conflict shall invalidate this Ordinance in its entirety. 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 10. Effective Date. This Ordinance shall take effect thirty (30) days after the date of final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 11. Safety Clause. The Town Council hereby finds, determines and declares that 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 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 12. No Existing Violation Affected. Nothing in this Ordinance shall be construed to release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing which may have been incurred or obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or declaring such penalty or liability or enforcing such right, and shall be treated and held as remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and appeals pending before any court or administrative tribunal. Section 13. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 7 of 7 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on May 28, 2019 and setting such public hearing for June 11, 2019 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado. BY: ATTEST: ____________________________ ___________________________ Sarah Smith Hymes, Mayor Brenda Torres, Deputy Town Clerk ADOPTED ON SECOND AND FINAL READING on June 11, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Kathryn Sellars, Interim Town Attorney Attachment A: Ord 19-01 Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com HEIL LAW & PLANNING, LLC MEMORANDUM TO: Honorable Mayor Smith Hymes and Town Council members FROM: Eric J. Heil, Town Attorney RE: Ordinance No. 19-01 Community Housing Incentives DATE: February 7, 2019 SUMMARY: Council adopted the Town of Avon Community Housing Plan on December 13, 2018 (“Housing Plan”). The Housing Plan recommended that Avon formalize a fee waiver program for worker housing. Council had previously expressed interest in revisiting the Real Property Transfer Tax (“RETT”) exemption and considering an increase in the exemption for primary residences for the purpose of promoting community housing. The tax and fee credits, exemptions and waivers (“Community Housing Incentives”) are discussed first, then proposed amendments and options to the primary residence RETT exemption are discussed. REQUESTED COUNCIL ACTION: Ordinance No. 19-01 is presented for consideration on first reading; however, the ordinance presents many technical financial concepts and budget implications. Currently, there are no known pending or imminent housing projects. Council may desire to treat this action item as a work session for initial discussion and then continue first reading to the next Council meeting to allow additional time for consideration, language amendments, or gathering additional information. COMMUNITY HOUSING INCENTIVES: Council has general authority to provide a credit, exemption or waiver of taxes and fees upon the finding of a public benefit. Such action is similar to an appropriation, which is a legislative act. The Colorado Constitution prohibits making “gifts” to corporations or individuals; therefore, any appropriation or other action to provide a financial benefit to a person or entity must include a finding of “public benefit”. Credits, exemptions and waivers for community housing projects are a form of financial subsidy which impacts the Town’s budget like an appropriation or expenditure of existing funds. New Chapter 3.14 – Community Housing Incentives. In order to “formalize” and appropriately implement tax and fee credits, exemptions and waivers, a new Chapter 3.14 is proposed in the Avon Municipal Code (“AMC”). The Finance Department strongly prefers to avoid rebates, refunds and reimbursements due to the additional administrative and accounting work, therefore, the form of financial subsidy is proposed as a tax “credit” for sales tax, a tax “exemption” for real property transfer taxes, and “waivers” for development code fees, tap fees, and building permit fees. Development Code applications may require a “refund” due to the timing because applications fees must be submitted as part of a complete application and Council would not likely consider and approve a resolution to grant Community Housing Incentives until a community housing project was completely approved. The following key elements are included in AMC Chapter 3.14: “Community Housing” is defined to mean housing restricted to (1) long-term residential use, (2) as a primary residence, (3) by qualified persons, (4) that is subject to a deed restriction approved by Town, and (5) is enforceable by the Town. Approval by Resolution: Council approval of Community Housing Incentives by resolution is required because each housing project is unique. A resolution only requires one meeting to approve and takes effect immediately. AMC Section 3.14.030 lists the minimum elements of such a resolution as follows: Attachment B: Feb 7 and Mar 6, 2019 Memorandum Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 2 of 7 (1) The Community Housing project shall be defined by location, type of residential units, and quantity of residential units; (2) The taxes and/or fees that are subject to a credit, exemption and/or waiver shall be defined, and may be apportioned for a development project that includes both community housing and non-community housing elements; (3) The form of the deed restriction that shall protect and maintain such Community Housing for the benefit of the Town shall be included with the resolution and the resolution shall accept or authorize the acceptance and execution of deed restriction; (4) The resolution shall include a finding that the tax and/or fee credits, exemptions and/or waivers are necessary to promote community housing that meets a current or projected housing need for the Avon community; and, (5) The resolution shall include a finding of public benefit for providing such tax and/or fee credit, exemption and/or waiver. AMC Chapter 3.14 allows for credits, exemptions and waivers of (1) sales tax on building materials and fixtures, (2) real property transfer taxes, (3) development code plan review fees, (4) Avon water tap fees, and (5) building permit fees. Each of these taxes and fees are discussed as follows: Sales Tax: The Town charges 4% on any building materials which are delivered in Town and on fixtures which are purchased outside of Town and installed in buildings. AMC Chapter 3.08 – Sales Tax would be amended by Ordinance 19-01 to enact the following new section: “3.08.036 – Tax credit for community housing. Notwithstanding any other provision of this Chapter, there shall be granted a sales tax credit to each person owing tax on the sale of building materials and fixtures used in a community housing project provided that such sales tax credit is approved by Council by resolution in accordance with Chapter 3.14. Neither the ability of the Town to grant this tax credit nor the repeal or termination of this tax credit shall constitute a tax increase, the imposition of a new tax or a tax policy change.” Real Property Transfer Tax: AMC Chapter 3.12 currently includes an exemption that allows the Town Manager to provide an exemption for RETT for “low and moderate income persons;” see AMC Section 3.12.060(14). Town Manager approval of a RETT exemption for new projects is likely not appropriate because “low and moderate income persons” is not defined and approval of any agreements, deed restrictions, covenants or declarations for the benefit of Town and to be enforceable by Town should be approved by Council. Ordinance 19-01 would revise this exemption to require Council to approve a RETT exemption for a new Community Housing project and would cross reference the procedure and requirements in AMC Chapter 3.14. The revisions are shown as follows: 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: Attachment B: Feb 7 and Mar 6, 2019 Memorandum Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 3 of 7 (14 15) 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 personsor otherwise providing Community Housing as defined in Chapter 3.14; provided, that the parties to the transaction shall apply to the Town Manager Council for the exemption prior to the occurrence of the transaction from which exemption is sought in accordance with Chapter 3.14 Community Housing Incentives and that the property shall be subject to a deed restriction that protects and maintains the Community Housing for the benefit of the Town, 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; Development Code Application Fees: Ordinance 19-01 authorizes a waiver or refund of Development Code application fees. These fees would likely involve site plan and design review at a minimum or could include applications for subdivision, re-zoning or planned unit development depending upon the project. This is the only fee that contemplates a possible refund due to the timing that Development Application review fees must be paid when submitting a complete Development Application. Depending upon the nature of the Community Housing project, this fee waiver could range from $1,000 to $10,000. Proposed AMC Section 3.14.060 specifically provides that the cost for third party consultants and professionals, studies and reports are not included in the Development Application review fees that can be waived, refunded or reimbursed under AMC Chapter 3.14. Avon Water Tap Fees: Avon imposes a water tap fee on new residential construction in the amount of $4,000 per residence in AMC Chapter 13.08, Appendix 13-A of the Avon Municipal Code. Proposed AMC Section 3.14.060 allows for water taps fees to be credited towards the cost of water line upgrades and extensions that may be required for the project and which would typically be paid for by the developer. The waiver of all water tap fees, deferment of water tap fee payments and a combination of credit, waivers and deferment is also allowed. Additional research is continuing with regard to the waiver of water tap fees because many communities are reluctant to waive these fees. Building Permit Fees: Proposed Section 3.14.080 would allow a waiver of plan review and building permit fees. Fire District and Emergency Services Impact Fee, School Site Dedications, and Park Land Dedications: Ordinance 19-01 does not propose including waivers for the following: Fire District Impact Fees: Chapter 3.40 – Impact Fees, which are required to be transferred to the Eagle River Fire Protection District. School Site Dedications: Section 7.32.080 – cash-in-lieu is held by Town in a separate School Facility Capital Improvements Fund and the use is limited to capital improvements of educational facilities or acquisition of school site lands that serve the Avon community. Parkland dedications: Section 7.32.090 - cash-in-lieu is held by Town in a separate Parks Capital Improvements Funds and and the use is limited to capital improvements of parks or acquisition of park lands that serve the Avon community Attachment B: Feb 7 and Mar 6, 2019 Memorandum Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 4 of 7 EXAMPLE OF TAX AND FEE RELIEF FOR COMMUNITY HOUSING: The following example is presented to illustrate the tax and fee relief and is based on a 10 unit townhome project, each unit is 2 bedrooms and 1,000 square feet, total square footage is 10,000 square feet, and construction on a 1 acre vacant land parcel purchased for $2,000,000. Sales Tax (Based on $300 per sq.ft. construction cost and estimate that 50% of construction cost materials and 50% is labor. 10,000 sq.ft. times $300 per sq.ft. x 50% x 4% sales tax.) $60,000.00 Real Property Transfer Tax (Based on $2 million vacant land purchase price times 2% RETT) $40,000.00 Development Application Fees (estimated, design review only) $1,500.00 Avon Water Tap Fees (2 inch, per Appendix 13-A) $41,300.00 Building Permit Fees (plan review and permit) $39,280.00 TOTAL TAX AND FEE RELIEF: $182,080.00 TAX AND FEE RELIEF PER UNIT: $18,208.00 PRIMARY RESIDENCE RETT EXEMPTION: Several options and concepts are provided for Council’s consideration with regard to any change to the RETT exemption for purchasers of a primary residence. Section 3.12.020 – Definitions of the Real Property Transfer Tax Chapter defines Eagle County Employee and Primary Residence as follows: 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: Feb 7 and Mar 6, 2019 Memorandum Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 5 of 7 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. The Town of Avon receives and approves approximately 65 RETT exemptions applications for primary residence. [2016 = 70; 2017 = 74; 2018 = 51]. The primary residence exemption is for the first $160,000 in consideration paid which translates into $3,200 in RETT relief for the buyer. On average, this exemption results in $208,000 in RETT annually that is exempted for primary residence purchases. Council previously adopted AMC Section 3.12.060(15) in 2002 by Ordinance No. 02-14, which provided a one-time exemption of $160,000 for the first purchase of a primary residence in Avon. Then Council adopted AMC Section 3.12.060(16) in 2007 by Ordinance No. 07-17 to allow an exemption for primary residence for subsequent purchases in Avon with the limitation that this subsequent exemption was only available to a person who met the definition of an “Eagle County Employee”. This change was intended to support working full-time residents who currently owned a primary residence in Avon but desired to purchase a larger residence to reflect residential needs and preferences during various life stages. Options for Primary Residence RETT Exemption Changes: 1. Increase the $160,000 primary residence exemption in AMC Sections 3.12.060(15) and (16). This is a simple option that is very easy to adopt and administer. This exemption would be available to all primary residence purchasers regardless of the sales prices of the residence. If Council desires this option, then Ordinance No. 19-01 can be amended to simply amend AMC Sections 3.12.060(15) and (16) to increase the $160,000 exemption amount. 2. Increase the $160,000 primary residence exemption but (1) limit eligibility for the additional exemption to residences that do not exceed a maximum affordable prices based on the Area Median Income for Eagle County (e.g. residences that do not exceed $640,000 to $960,000), and (2) limit the total RETT exemption for primary residence to one half (50%) of the sales price for the residence. The existing RETT exemptions for primary residence state that the exemption only applies to the portion paid by a buyer and nearly all transactions split the RETT 50/50 between buyer and seller. 3. Do not increase the primary residence exemption and in the alternative amend AMC Section 3.12.110 – Allocation of Revenue to pledge a portion of annual RETT revenues to the Avon Community Housing Fund. This option would advance a goal in the Housing Plan to identify and implement a dedicated funding source for community housing. Attachment B: Feb 7 and Mar 6, 2019 Memorandum Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 6 of 7 Pros and Cons of Options: Options 1 and 2 would directly reduce the costs for buyer to purchase a residence in Avon as a primary residence. The real estate transfer tax is split 50/50 between buyer and seller for a strong majority of real estate transfers (anecdotally 95% of transactions). The buyer is required to pay the buyer’s portion of the RETT at closing in addition to the down payment and other closing costs. An increase in the primary residence exemption would directly reduce the buyer’s required cash at closing which will improve buyer’s ability to purchase a residence. An increase of the primary residence exemption from $160K to $320K would save a buyer a total of $6,400 at closing. An increase of the primary residence exemption from $160K to $480K would save a buyer a total $9,600 at closing. Option 2 proposes a limitation on an increased, additional primary residence RETT exemption to those more in need and would exclude purchases of residences greater than ($640,000 to $960,000) on the basis that the purchase of a residence in that price range does not warrant a public subsidy to promote Community Housing. In addition, Option 2 limits the total exemption to one half of the consideration paid for a residence because the existing primary residence exemptions contemplate that the exemption should only apply to the RETT paid by buyer and the obligation to pay RETT is split 50/50 on most transactions. Option 3 contemplates that the amount of subsidy associated with increasing the primary residence exemption may be more impactful and beneficial to Avon’s community housing efforts if it were dedicated to a housing fund. Other Options: Council may desire other options, or hybrid options. For example, increasing the primary residence exemption from $160K to $320K up to a maximum residential sales prices of $640K and dedicating a small percentage (e.g. 7%) or set amount (e.g. $100K) per year of RETT to the Avon Housing Fund, or dedicating only a portion of RETT to community housing when it exceeds a minimum amount in any given year. The downside of a hybrid approach is that the impact may be diluted across several housing efforts. Impacts to RETT and Capital Improvements: The RETT generates an average of $3.1 million in revenues per year. An increase in the primary residence RETT exemption from $160,000 to $320,000 can be expected to reduce RETT revenues by $208,000 per year. An increase from $160,000 to $480,000 can be expected to reduce RETT revenues by $416,000 per year. In the alternative, Council could amend AMC Section 3.12.110 – Allocation of Revenue to dedicate a certain percentage or dedicate a specific dollar amount to the Avon Community Housing Fund. A 5% dedication would result in approximately $155,000 per year in revenues for Community Housing. A 10% dedication would result in approximately $310,000 per year in revenues for Community Housing. Any increase to the primary residence RETT exemption or any dedication to the Avon Housing Fund will have an impact on the available RETT revenues and capital improvements project planning in the future. EXEMPTION FOR DEED RESTRICTED UNITS: Ordinance 19-01 includes a clean-up to expressly allow an exemption for transfers of deed restricted housing units with a new AMC Section 3.12.060(16). This has been the policy and practice of Avon for a long time and has been approved under existing AMC Section 3.12.060(14) which authorizes the Town Manager to provide an exemption for the purpose of providing low or moderately priced housing units. New AMC Section 3.12.060(16) would read: Attachment B: Feb 7 and Mar 6, 2019 Memorandum Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 7 of 7 “3.12.060(16) Transfers of Community Housing subject to a deed restriction to qualified purchasers provided that the deed restriction that protections and maintains such Community Housing for the benefit of the Town is in compliance with all terms and conditions.” RECODIFICATION AND AMENDMENTS TO AMC SECTION 3.12.060: Due to previous amendments and the concern over TABOR restrictions and the impact of changes to existing language in Chapter 3.12 Real Property Transfer Tax, the list of exemptions is disorderly. With the addition of new enactments, a slight recodification is proposed so that the subject matter of the listed exemptions is more orderly. SAMPLE MOTIONS: [continuance] “I move to continue consideration of first reading of Ordinance No. 19-01 and provide direction to staff to [make changes, research more information]” [approval on first reading] “I move to approve first reading of Ordinance No. 19-01 Amending Chapter 3.12 Real Propery Transfer Tax and Enacting Chapter 3.14 Community Housing Tax and Fee Credits, Exemptions and Waivers.” Thank you, Eric ATTACHMENT A: Ordinance No. 19-01 ATTACHMENT B: Avon Community Housing Plan ATTACHMENT C: REDLINE of existing AMC Sections 3.12.060(14) through (17) compared to proposed AMC Sections 3.12.060(14) through (19) Attachment B: Feb 7 and Mar 6, 2019 Memorandum Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com HEIL LAW & PLANNING, LLC MEMORANDUM TO: Honorable Mayor Smith Hymes and Town Council members FROM: Eric J. Heil, Town Attorney RE: Ordinance No. 19-01 Community Housing Incentives - DATE: March 6, 2019 SUMMARY: This memorandum provides a follow-up to the February 26, 2019 Council discussion of Ordinance No 19-01 Community Housing Incentives. The materials presented on February 26, 2019 are resubmitted to Council along with a complete copy of the Avon Community Housing Plan adopted at the end of last year. The prior materials are supplemented with these optional language revisions based upon comments received at the February 26, 2019 meeting and comments received after that meeting. 1. Do No Limit Buyer’s Exemption to One-Half of Sale: Do not limit Buyer’s exemption to one-half of consideration and allow Buyer to negotiate to pay for more than one-half of the RETT to enhance Buyer’s ability to negotiate a lower purchase price. This can be accomplished by deleting sub-section 3.12.060(19)(a)(4) which is shown below in strikeout. To illustrate the effect, if a Buyer negotiated to pay 100% of the RETT on a $500,000 residence and the Town allows the Buyer to claim an exemption for the entire RETT amount that the Buyer pays, the full exemption would be in the amount of $10,000. Typically, the RETT is split 50/50; therefore, if the Buyer negotiates to be liable for all the RETT, then the Buyer can negotiate a purchase price that is $5,000 less than the purchase price for a Buyer who can not claim any RETT exemption. This option would require additional administrative work to verify the amount the Buyer actually paid at closing. 3.12.060(19) The next [one hundred sixty thousand dollars ($160,000.00) or three hundred twenty thousand dollars ($320,000.00)] of the consideration paid after the first one hundred and sixty thousand dollars paid that is exempt pursuant to either Section 3.12.060(17) or (18) above for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a. An application for exemption is filed with the Finance Department, which application is accompanied by: 1. An affidavit that the applicant meets the definition of Eagle County employee; 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 (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 Attachment B: Feb 7 and Mar 6, 2019 Memorandum Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: March 6, 2019 Page 2 of 2 3. The total consideration paid for the residence does not exceed [six hundred forty thousand dollars ($640,000.00) or nine hundred sixty thousand dollars ($960,000.00)]; and, 4. The total additional consideration that is exempt pursuant to this Section 3.12.060(19) and either Section 3.12.060(17) or (18) does not exceed one half of the entire consideration paid for the transfer. b. 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.” 2. Extend Increased Primary Residence Exemption to Retirees: Allow long term Eagle County residents who are retirees to qualify for primary residence exemptions. An example of a retiree exemption would be for residents who have lived in Eagle County for at least five (5) years and who are at least sixty- five years of age. Language amendments would include adding a definition of Eagle County Retiree and then including Eagle County Retiree in addition to Eagle County Employees in the exemptions in Sections 3.12.060(18) and (19). A variation to consider is allowing an Eagle County Resident who has lived in Eagle County a total of 5 years in the last 7 years and is at least 65 years old to qualify as an Eagle County Retiree to allow for circumstances when temporary relocation occurs (which can arise with elder care). 3. Clarify that Incentives are to Promote Community Housing: Clarify that the Community Housing Incentives in Chapter 3.14 are intended primarily for housing purposes. Rather than modifying the language each of the taxes and fees, I recommend an addition to Section 3.14.010 Purpose to read as follows: 3.14.010. Purpose. Council may elect to promote Community Housing through the use of Community Housing Incentives, including the credit, exemption or waiver of taxes or fees otherwise applicable to residential development. The use of Community Housing Incentives is intended to promote the provision of Community Housing which would likely not occur without providing such incentives and is not intended to subsidize free market residential or commercial development. I suggest that Council would benefit from some additional real estate market analysis to better understand the level of public subsidy that is required to incentivize the private sector to produce deed restricted Community Housing. A residential project with mixed free market units and deed restricted units provides a more integrated residential project rather than segregating low or middle income housing and free market units are often necessary for the economic viability of a private sector project. Thank you, Eric ATTACHMENT A: February 7, 2019 Memorandum ATTACHMENT B: Ordinance No. 19-01 ATTACHMENT C: Avon Community Housing Plan ATTACHMENT D: REDLINE of existing AMC Sections 3.12.060(14) through (17) compared to proposed AMC Sections 3.12.060(14) through (19) Attachment B: Feb 7 and Mar 6, 2019 Memorandum (14) 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. (14(15) Any sale or conveyance of real property or improvements for the purpose of constructing or otherwise providing low or moderately priced housing units for sale or lease to low or moderate income personsCommunity Housing as defined in Chapter 3.14; provided, that the parties to the transaction shall apply to the Town ManagerCouncil for the exemption prior to the occurrence of the transaction from which exemption is sought, in accordance with Chapter 3.14 Community Housing Incentives and that the partiesproperty shall agreebe subject to appropriately restrict the future use of the property to low and moderately priced housing units by recorded agreement,a deed restriction, covenants, declarations or similar instruments as may be required by that protects and maintains the Community Housing for the benefit of the Town Manager; ; (15) (16) Transfers of Community Housing subject to a deed restriction to qualified purchasers provided that the deed restriction that protects and maintains such Community Housing for the benefit of the Town is in compliance with all terms and conditions. (17) 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 (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. Attachment C: REDLINE of AMC 3.12.060 Revisions 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. (1618) 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(1517) and the applicant has satisfied the conditions of subsection (1517)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(1517) 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. 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. Attachment C: REDLINE of AMC 3.12.060 Revisions Ordinance 19‐03 Inclusionary Housing Page 1 of 1 TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: David McWilliams, AICP. Town Planner Matt Pielsticker, AICP, Planning Director Date: June 11, 2019 Topic: PUBLIC HEARING AND SECOND READING OF ORDINANCE 19‐03, APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE, FOR INCLUSIONARY HOUSING REGULATIONS ACTION BEFORE COUNCIL Before Council is action on Second Reading of Ordinance 19‐03, set to approve amendments to Title 7 of the Avon Municipal Code for Inclusionary Housing Regulations. AVAILABLE ACTIONS ‐ Continue Ordinance 19‐03 to a future meeting. ‐ Approve 2nd Reading of Ordinance 19‐03, thereby approving inclusionary Housing Regulations. RECOMMENDED MOTION “I move to approve second reading of Ordinance 19‐03.” SUMMARY OF CHANGES SINCE MAY 28, 2019 MEETING The second reading of the Ordinance was continued from the May 28, 2019 in order to make additional modifications. The following summarizes the changes:  Development “in Avon” clarified in Purpose Statement (Code Section 7.20.100(a)).  Table 7.20‐14 cleanup with consistent nomenclature and 20% mitigation rate.  Redcliff now explicitly included within the Eagle River Valley definition (Code Section 7.08).  Removal of Code Section 7.20.100(4)(iii), regarding the necessity to gain consent of HOA’s or other jurisdictions.  Town Council approval of Employee Mitigation Plans, instead of Director (Code Section 7.20.100(g)). ATTACHMENTS 1: Ordinance 19‐03 2: Previous Town Council Staff Reports 3: Eagle County Housing Tools Matrix 4: Sections from the Town of Avon Community Housing Plan 5: Written Public Comments LINKS Eagle County Affordable Housing Guidelines https://www.eaglecounty.us/Housing/Documents/2014_Housing_Guidelines_May_13/ Avon Comprehensive Plan Master Appendix Tables http://avon.org/DocumentCenter/View/19348/Comprehensive‐Plan‐Master‐Appendix ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – June 11, 2019 Page 1 of 8 TOWN 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 ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – June 11, 2019 Page 2 of 8 construction and provide a credit for housing mitigation for additional development on Lots 2A, 2B, 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 resale price 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 strike-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 (3 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. (1) Development within Existing Structures and Changes in Use for Remodeling. ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – June 11, 2019 Page 3 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. (2) Governmental projects and housing projects constructing Community Housing are exempt from this section. (3) Properties with preexisting vested rights are exempt from these requirements. (4) 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 Formulas. When applicable, employee housing mitigation shall be provided in accordance with these standards: To determine the number amount of Employee Housing Mitigation units that must be provided, the following job generation, employee generation, and mitigation rate formulas shall be used: Table 7.20-14 Employee Housing Mitigation Formulas Factor Calculation Commercial Size of development Leasable square feet Jobs generated Workers Required 2.8 per 1,000 sq. ft. Rate x sq. ft./1,000 Employees generated Jobs per Employee 1.2 jobs per employee Jobs generated Workers Generated/1.2 Households generated 1.8 employees per unit Employees generated/1.8 Units required Required mitigation 120% mitigation Households Jobs generated x 120% Lodging and Property Management Size of development # of rooms or # of units Jobs generated Workers Required Lodge/hotel - # of rooms x 0.8 0.8/ room; Prop. management - # of units x 0.4 0.4/ unit ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – June 11, 2019 Page 4 of 8 Employees generated Jobs per employee 1.2 jobs per employee Jobs generated Workers Generated/1.2 Households generated 1.8 employees per unit Employees generated/ 1.8 Units required Required mitigation 120% mitigation Households Workers generated x 120% Residential Size of development # of Dwelling Units Workers Required .33 per Dwelling Unit # of units x 0.33 Jobs Per Employee 1.2 Workers Generated/1.2 Required mitigation 20% mitigation Workers Generated x 20% Note: The required employee housing mitigation shall be rounded to the nearest whole number. (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 Type Minimum Size of Unit (Square Footage) Number of Employees Housed Studio 500 1.25 1 bedroom 750 1.75 2 bedrooms 900 2.25 3 or more bedrooms 1,225 3.5 (3) 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 types of unit(s) created: ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – June 11, 2019 Page 5 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 employee 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. (4) Deed restricting existing free market unit(s) within the Town or the Eagle Valley. i. 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 affordability of the proposed Employee Housing Mitigation unit(s) is adequately protected, considering issues including but not limited to long term 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 applicable required Employee Housing Mitigation rate. (5) Fees-in-lieu, as defined by Town Council resolution and updated every 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: ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – June 11, 2019 Page 6 of 8 i. 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 Occupancy for any free market portion of the development. ii. Interest Bearing Account. The Town shall transfer the funds to an interest-bearing 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 7.20.100(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 Mitigation plan shall require subsequent Town Council approval. (h) Certification of Action. The Town Council shall certify the 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. (2) Employee housing units shall be located on-site. The applicant may propose alternatives to on-site employee housing mitigation in accordance with the alternative equivalent compliance process set forth in Section 7.16.120. When considering proposals for off- site employee housing, preference shall be given to locations closer to the applicant's property, locations in the Town and locations which are served by mass transit. (3) Employee housing units shall be owned by the owner of the commercial space for which the employee housing units serve and shall be used exclusively by employees of such commercial space; or employee housing units shall be offered for sale subject to a deed restriction that restricts the appreciation of price and which restricts eligible buyers and renters in accordance with the form of price controlled housing deed restriction adopted ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – June 11, 2019 Page 7 of 8 by the Town. Applicants may voluntarily propose to meet the employee housing units with rent controlled units through the alternative equivalent compliance process. (4) Employee housing mitigation shall be satisfied by providing one (1) residential studio unit, one (1) bedroom in a residential unit or any combination thereof, for each required employee housing unit of mitigation. The minimum size for a studio unit shall be five hundred (500) square feet and the minimum size for a one-bedroom residential unit shall be seven hundred fifty (750) square feet.” 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, 2B, 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. ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – June 11, 2019 Page 8 of 8 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on May 14, 2019 and setting such public hearing for June 11, 2019 at the Council Chambers of the Avon Municipal Building, located at One Hundred Mikaela Way, Avon, Colorado. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ADOPTED ON SECOND AND FINAL READING on June 11, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Kathryn M Sellers, Town Attorney Ordinance 19‐03 Inclusionary Housing Page 1 of 2 TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Matt Pielsticker, AICP, Planning Director Date: May 28, 2019 Topic: PUBLIC HEARING AND SECOND READING OF ORDINANCE 19‐03, APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE, FOR INCLUSIONARY HOUSING REGULATIONS ACTION BEFORE COUNCIL Before Council is action on Second Reading of Ordinance 19‐03, set to approve amendments to Title 7 of the Avon Municipal Code for Inclusionary Housing Regulations. AVAILABLE ACTIONS ‐ Continue Ordinance 19‐03 to a future meeting. ‐ Approve 2nd Reading of Ordinance 19‐03, thereby approving inclusionary Housing Regulations. RECOMMENDED MOTION “I move to approve second reading of Ordinance 19‐03.” SUMMARY OF CHANGES TO ORDINANCE The first reading of the Ordinance was approved on May 14, 2019. At the meeting Council decided to delay the update to the 2008 Commercial Linkage study and residential study. There was direction to revise the employee mitigation rate from 10% to 20%. Other miscellaneous modifications include:  Purpose clause amendments, including exempting Community Housing Projects.  Redcliff added to list of exceptions to Eagle Valley definition.  Property Management Definition clarifications.  Changes to nomenclature in Table 7.20‐14, Employee Housing Mitigation Formula.  Introduction to prioritization (Subsection (f)) to explain preference is first on‐site housing, then within Avon, etc.  Credit Sheraton Mtn Vista (Section 4) with blended average option as discussed on May 14. The number of credits was doubled in order to adjust to correspond to the 20% mitigation change.  Exemptions Section updated to remove the word ‘redevelopment,’ and added current Development Plan approvals that exist on effective date or are extended per code. Council has discretion to apply this ordinance to any development that does not already have a building permit (i.e. Lot B hotel) or vested rights. The final exemption listed above was added by staff after questions arose to the effectiveness of the ordinance when looking at existing project approvals. If Council agrees with this approach to existing approvals there is nothing to change in the ordinance. If Council wishes to have the ordinance apply to any project that has not pulled a building permit, then the language in Section (c)(4) of the ordinance should be stricken. ATTACHMENT 2 Ordinance 19‐03 Inclusionary Housing Page 2 of 2 CODE TEXT AMENDMENT REVIEW CRITERIA The review procedures for this application are governed by the Development Code. According to the AMC §7.16.040(c), Review Criteria, the Town Council shall use the following review criteria as the basis for a decision to amend the text of the Development Code: (1) The text amendment promotes the health, safety and general welfare of the Avon community; (2) The text amendment promotes or implements the goals and policies of the Avon Comprehensive Plan; (3) The text amendment promotes or implements the purposes stated in the Development Code; or (4) The text amendment is necessary or desirable to respond to changed conditions, new planning concepts or other social or economic conditions. Staff Response: The amendments are timely in addressing the housing needs of the Town and the greater Eagle County community, a condition that seems to be getting more pressing. They promote the health, safety and welfare of the community by linking new job generation to the provision of housing. They implement the goals and policies of the Comprehensive Plan, specifically “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,” and the Avon Community Housing Plan (ACHP). The ordinance conforms to the Development Code purposes, specifically (n), “Achieve a diverse range of attainable housing which meets the housing needs created by jobs in the Town, provides a range of housing types and price points to serve a complete range of life stages and promotes a balanced, diverse and stable full‐time residential community which is balanced with the visitor economy.” ATTACHMENTS 1: Ordinance 19‐03 2: Town Council Staff Reports from May 14, 2019, April 9, 2019, and March 12, 2019 3: Eagle County Housing Tools Matrix 4: Sections from the Town of Avon Community Housing Plan 5: Written Public Comment LINKS Eagle County Affordable Housing Guidelines https://www.eaglecounty.us/Housing/Documents/2014_Housing_Guidelines_May_13/ Avon Comprehensive Plan Master Appendix Tables http://avon.org/DocumentCenter/View/19348/Comprehensive‐Plan‐Master‐Appendix ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 1 of 5 TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Matt Pielsticker, AICP, Planning Director Date: May 14, 2019 Topic: FIRST READING OF ORDINANCE 19-03, APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE, FOR INCLUSIONARY HOUSING REGULATIONS ACTION BEFORE COUNCIL Before Council is action on First Reading of Ordinance 19-03, set to approve amendments to Title 7 of the Avon Municipal Code for Inclusionary Housing Regulations. AVAILABLE ACTIONS - Continue 1st Reading of Ordinance 19-03 to a future meeting, pending additional information. - Approve 1st Reading of Ordinance 19-03, thereby setting a public hearing date of July 9, 2019. RECOMMENDED MOTION “I move to approve first reading of Ordinance 19-03, setting a final reading and public hearing date of July 9, 2019.” SUMMARY OF PREVIOUS TOWN COUNCIL MEETING The April 9, 2019 presentation focused on responses to specific elements of the Ordinance that members of Town Council had questions. Items presented, without any update for Council, include: • Difference between Eagle County worker and a Telecommuter • Additional definitions in the code • Government Inclusion in requirements – Who is exempt? • Funds eligible to be returned in 7 years? • Eagle County Affordable Housing Guidelines UPDATES Pursuant to discusses at the last meeting, staff has progressed on several elements of the Ordinance and are ready to move forward to a second reading pending final direction on the Sheraton Mountain Vista credit section. The following bullet points conclude the remaining topics discussed: • Relevance of the 2008 Eagle County Nexus/Proportionality Analysis for Commercial Development/ Workforce Housing Linkage Following Council’s direction from the last meeting, this study is proposed to be updated, and expanded. See attached proposal (ATTACHMENT 4) from RRC Associates. After initial discussions, the consultants mentioned that the commercial development generation rate numbers are only likely to change slightly, as most business types have not fundamentally changed in the last 11 years. Eagle County is eager to partner on the data collection/commercial linkage portion of this updated and expanded study and would like to contribute to that portion of the contract (approximately $4,750). The new portion of the study includes residential linkage rates. Staff has included this line item in the upcoming general fund budget amendment, scheduled for the next Town Council meeting. The total contract, minus Eagle County’s contribution, is expected to be approximately $10,000. ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 2 of 5 • Single Family and Duplex Regulations Staff still has not included single family and duplex regulations in the proposal and would appreciate some clarity from Town Council whether to include it. No new formulas are proposed at this time because the proposed updated nexus study would calculate size categories for mitigation of single family and duplex houses based on homeowner operations and ongoing maintenance work. That is, the updated nexus study would propose a formula through which Employee Equivalents required for mitigation would be stepped up incrementally based on size of the houses. The fees per employee equivalent would be approved by Council resolution and updated as needed. • Multifamily Employee Generation Rate The currently proposed Multifamily Employee Generation is .33 per dwelling unit, from a Telluride study. This study hypothesized that multifamily units were all subject to short-term rental within their town core. This rate is subject to potential revision with the updated study. The proposed study will not contemplate the short-term rental implications of multifamily developments because of the uncertainty involved (i.e. ratio of units in a rental pool). The Employee Generation number is likely to fall from .33 based upon updated information on straight residential projects. Staff suggests that if the Council choses, short term rental impacts are best handled through a direct tax on short term rentals. • Subdivision regulations Staff is not proposing that these regulations be applicable at the time of property subdivision. This is due in part to the timing of a property subdivision. If a landowner decides to subdivide a large parcel into smaller developable lots the details of the future development would not be available to conjure an accurate Housing Mitigation Plan. The other likely time of property subdivision is during construction, or shortly thereafter, and again this would be an inopportune time to trigger community housing standards because the project would have already gone through a development review. Large, underdeveloped parcels, such as the Village (at Avon) present other unique circumstances that limit implementation of these regulations. The Village (at Avon) has vested property r ights until 2039, including a PUD Guide, that outlines the procedure and criteria for review and administrative approval of subdivisions. Therefore, the inclusionary zoning regulations would not be triggered by subdivision unless the property were rezoned to another zone district. The Village (at Avon) has committed to providing 500 employee housing units at full buildout. Today, there are 244 units constructed at Buffalo Ridge. • Sheraton Mountain Vista The Sheraton property was developed as a PUD and the initial phase of the development provided 20 units of employee housing. The undeveloped lots were once part of the PUD that were to be served by those units. Now that those lots are zoned Town Center, the credit earned by those 20 units is subject to debate for future development. Three options are proposed by staff to demonstrate the amount of credit that is available for the undeveloped Sheraton property, which consists of Lots 2A, 2B, 3 and 5, Mountain Vista Resort Subdivision. As drafted in the attached Ordinance, the current Sheraton development would require 14.57 Employee Equivalents, and the reminder of credits available would go to Lots 2A, 2B, 3 and 5. The three credit types are tabulated on the next page. The three methodologies are as follows: o “Bedroom Allocation” would credit the existing 20 employee units based upon bedroom count. The project includes eight (8) studio, eight (8) 1-bedroom, two (2) 2- ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 3 of 5 bedroom, and two (2) 3-bedroom deed restricted units. Based upon the Ordinance formula for number of employees per unit type, the total credit would be 35.5 employees. This would leave 20.93 employee credits to future Lot C Development. This is the formula presented at the April 9, 2019 meeting, and the feedback received by Council indicated that this credit seemed high based on the smaller constructed unit sizes. o “Bedroom Allocation Accounting for Size Difference” takes the ratio of the total square footage of each unit type provided, and compares that to the square footage required if the 20 employee units were built under the proposed Ordinance (i.e. 8 studios x 500 square feet + 8 1-bdrms x 750 square feet). The Ordinance would require approximately 14,250 square feet of housing, and the existing 20 units total 7,712 square feet of housing. This equals approximately 54% of the “Bedroom Allocation” outlined above and would leave 4.65 employee credits for future Lot C development. This credit could accommodate a 69-room hotel project without triggering any additional mitigation. o “Average of the Two” is the average credit of the two formulas and would result in a credit of approximately 12.79 employee credits for future Lot C development. For perspective, this credit would accommodate a 191-room hotel project. Staff suggests that during this meeting Town Council conclude the credit rationale for Lots 2A, 2B, 3, and 5, Mountain Vista Resort Subdivision (“Lot C” in above chart). Please refer to Section 4 of the Ordinance, Page 7 of attachment 1, to see how the credit would be memorialized. • Historic PUD Approval Employee Offsets In Avon’s history, various PUD negotiations have resulted in the provision of employee dwelling units. Staff was asked to quantify them in accordance to the Employee Equivalents that would have been required. Note that the third column expresses the equivalents due at the PUD process only, and some of these projects evolved to have lower densities (resulting in lower requirements) than the requirement show. Of course, the PUDs may also have provided other types of public benefits not captured by this table. Calculation Type Total PUD Credits Credits Available for Lot C Bedroom Allocation 35.5 20.93 Bedroom Allocation Accounting for Size Difference 19.22 4.65 Average of the Two 27.36 12.79 Sheraton Credit Calculation ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 4 of 5 • Development Bonus Regulations The Ordinance has been updated to remove the Development Bonus regulations. At the April 9, 2019 meeting it became clear that this section of the Ordinance should not be mixed with the inclusionary zoning regulations. CODE TEXT AMENDMENT PROCESS CODE TEXT AMENDMENT REVIEW CRITERIA The review procedures for this application are governed by the Development Code. According to the AMC §7.16.040(c), Review Criteria, the Town Council shall use the following review criteria as the basis for a decision to amend the text of the Development Code: (1) The text amendment promotes the health, safety and general welfare of the Avon community; (2) The text amendment promotes or implements the goals and policies of the Avon Comprehensive Plan; (3) The text amendment promotes or implements the purposes stated in the Development Code; or (4) The text amendment is necessary or desirable to respond to changed conditions, new planning concepts or other social or economic conditions. Staff Response: The amendments are timely in addressing the housing needs of the Town and the greater Eagle County community, a condition that seems to be getting more pressing. They promote the health, safety and welfare of the community by linking new job generation to the provision of housing. They implement the goals and policies of the Comprehensive Plan, specifically “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,” and the Avon Community Housing Plan (ACHP). They conform to the Development Code purposes, specifically (n), “Achieve a diverse range of attainable housing which meets the housing needs created by jobs in the Town, provides a range of housing types and price points to serve a complete range of life stages and promotes a balanced, diverse and stable full-time residential community which is balanced with the visitor economy.” Name Units provided Meet Proposed Size? Emp Equivalents Req at PUD Emp Equivalents Provided by units (or $) Brookside PUD 3 yes 8.27 6 Chapel Square PUD 8 No 23.79 16 WR Gandorph PUD 1 yes 0.11 3 Sheraton PUD 20 No 20.2 35.5 Riverfront Original PUD $846,000 N/A 37.73-22.53 16.09 Riverfront 2018 PUD 2 yes 1.46 4.5 PUDs that Provided Employee Housing ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 5 of 5 ATTACHMENTS 1: Ordinance 19-03 2: April 9, 2019 Town Council Staff Report 3: March 12, 2019 Town Council Staff Report 4: Nexus Analysis Proposal from RRC Associates, dated 4/15/19 5: Eagle County Housing Tools Matrix 6: Sections from the Town of Avon Community Housing Plan 7: Public Comment LINKS Eagle County Affordable Housing Guidelines https://www.eaglecounty.us/Housing/Documents/2014_Housing_Guidelines_May_13/ Avon Comprehensive Plan Master Appendix Tables http://avon.org/DocumentCenter/View/19348/Comprehensive-Plan-Master-Appendix ATTACHMENT 2 TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: David McWilliams, AICP, Town Planner Matt Pielsticker, AICP, Planning Director Date: April 9, 2019 Topic: FIRST READING OF ORDINANCE 19-03, APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE, FOR INCLUSIONARY ZONING AND DEVELOPMENT BONUS REGULATIONS ACTION BEFORE COUNCIL Before Council is action on First Reading of Ordinance 19-03, approving amendments to Title 7 of the Avon Municipal Code for Inclusionary Zoning and Development Bonus Regulations. AVAILABLE ACTIONS - Continue 1st Reading of Ordinance 19-03 to a future meeting, pending additional information. This would allow for a discussion and direction to return with additional information. - Approve 1st Reading of Ordinance 19-03, thereby setting a public hearing date of April 30, 2019. RECOMMENDED MOTION “I move to approve first reading of Ordinance 19-03, setting a final reading and public hearing date of April 30, 2019.” CODE TEXT AMENDMENT PROCESS CODE TEXT AMENDMENT REVIEW CRITERIA The review procedures for this application are governed by the Development Code. According to the AMC §7.16.040(c), Review Criteria, the PZC and Town Council shall use the following review criteria as the basis for recommendations and decisions on applications to amend the text of the Development Code: (1) The text amendment promotes the health, safety and general welfare of the Avon community; (2) The text amendment promotes or implements the goals and policies of the Avon Comprehensive Plan; (3) The text amendment promotes or implements the purposes stated in the Development Code; or (4) The text amendment is necessary or desirable to respond to changed conditions, new planning concepts or other social or economic conditions. Staff Response: The amendments are timely in addressing the housing needs of the Town and the greater Eagle County community, a condition that seems to be getting more pressing. They promote the health, safety and welfare of the community by linking new job generation to the provision of housing. They implement the goals and policies of the Comprehensive Plan, specifically “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 ATTACHMENT 2 that incorporates both rental and ownership opportunities, affordable for local working families,” and the Avon Community Housing Plan (ACHP). They conform to the Development Code purposes, specifically (n), “Achieve a diverse range of attainable housing which meets the housing needs created by jobs in the Town, provides a range of housing types and price points to serve a complete range of life stages and promotes a balanced, diverse and stable full time residential community which is balanced with the visitor economy.” SUMMARY OF MARCH 12, 2019 TOWN COUNCIL MEETING The March 12, 2019 presentation and meeting materials focused on the background, supporting documents, scope, applicability, and potential impacts. Specific elements of proposed code were highlighted to spur discussion and individual members of Town Council gave feedback for various parts of the proposed language. Below is a list of those points, with staff comments. • Difference between Eagle County worker and a Telecommuter Staff contacted George Ruther, Housing Director with the Town of Vail, to inquire about how the recent Chamonix housing development addressed this question. For that project, Vail enforces employment with a local business. For the rest of Vail, “The Town does permit telecommuting, sort of, but not entirely, yet. We do have residents in deed restricted housing that receive a pay check from an out of town parent company, but all of their work is local and servicing the local community. For example, this exists in Vail in certain health care positions and several technology positions. Again, the pay check may be coming from Atlanta, however, all the service being provided is local. By contrast, we would not permit a hedge fund manager to work in Vail, get a pay check from New York, and provide all their services to a firm on Wall Street.” Staff feels that the regulations as presented would allow the same type of employment profile as Vail uses in their deed restricted housing. In the future, individual housing projects may merit additional considerations that limit or expand allowances for telecommuters. • Additional definitions Staff included the following definitions in the definitions section of Chapter 7: property management; residential use; community housing (Attachment 1). The community housing definition is the same as the one proposed in Ordinance 19-01, Community Housing Incentives. Code currently includes the following definition that would apply to the Jobs Generated portion of Table 7.20-14, Lodge/Hotel of .8 per room: “Hotel, motel and lodge means a building, excluding bed and breakfast, containing any room or group of rooms used primarily for short-term transient lodging for a total continuous duration of less than thirty (30) days and which may include accessory uses, such as offices, laundry facilities, recreational facilities, lobbies, lounges, kitchen and dining facilities, meeting rooms, retail and other similar accessory uses commonly associated with hotels, motels and lodges.” • Subdivision regulations Subdivision regulations are not currently proposed in the Code Text Amendment (CTA) because the proposed language adequately captures the perceived needs of the town, and staff suggests keeping the language as proposed. Development application submittal is the appropriate timing since that is when details of a new development application are finalized for review. • Multifamily Employee Generation Rate Staff proposed a Multifamily Employee Generation Rate of .33 employees per dwelling unit. This was “ripped” from Telluride’s development code. Staff reached out to planning staff in Telluride and learned that the number is based on a 1994 nexus study, similar to the 2008 study conducted in Eagle County. While Telluride has been using this number for 25 years, their planning staff could not find the original document or confirm the exact scope (number of communities sampled) for the study. ATTACHMENT 2 • Relevance of the 2008 Eagle County Nexus/ Proportionality Analysis for Commercial Development/ Workforce Housing Linkage While there are no industry standards on how up-to-date studies must be, in practice they are typically updated when new fees are being significantly altered or when new linkage programs are being enacted. Staff reached out to the Tori Franks (Valley Home Store), Willa Williford (independent consultant), and Melanie Rees (independent consultant), to provide feedback about the current study and the possibility of updating the study. When the Eagle County Housing Needs Assessment was updated last year, 53 local employers responded to the survey questions. Connecting this updated data to the larger data set from the 2008 Eagle County Nexus/Proportionality Analysis for Commercial Development would allow for the team to examine rates by type of employment. A residential rate may also be possible to produce. Eagle County is interested in partnering to update the study if the Council so desires. Staff is still working with the County and the consultants to determine the scope, timeframe (roughly 3 months), and potential costs (roughly $10,000), which could be split 50/50 with Eagle County. Alternatively, staff could spearhead a project that surveys only Town of Avon businesses (instead of an enlarged sample from multiple mountain communities) to get smaller scale estimate of the commercial linkage equivalents but could probably not independently produce an accurate residential rate. • Single Family and Duplex Regulations The current CTA excludes housing developments of less than three (3) dwelling units to limit the impact on the primarily residential neighborhoods. There are few parcels zoned for single family or duplex that have yet to develop in Avon. If desired, staff could present an updated CTA that requires a fee-in-lieu for new development, redevelopment, and additions. Staff analyzed some recently approved developments in the Town of Avon according to Employee Equivalent requirements in Telluride and Aspen (and using the fee-in-lieu potentially to be adopted by Avon, at 100% AMI) to illustrate different options that have been used. Avon’s Equivalent was calculated as if the .33 employees generated per residential dwelling unit applied to single family dwellings, and it would not be possible to account for additions. Telluride calculates an employee equivalent based on a logarithmic scale thus increasing the number of equivalents per square feet as the size increases. That is, a large house is expected to generate more employees per square foot than a small one. Aspen has a mitigation per 1,000 square feet of floor area and the rate rises after 4,500 square feet. With these protocols, building additions could also be subject to inclusionary zoning regulations , as opposed to a simple dwelling unit count. These protocols are not proposed specifically, and staff suggests that if Town Council wishes to include developments with less than three (3) units, a measure thereby exempting houses under a certain size (perhaps 4,000 square feet) from the regulations, and then a scale that imposes fees per square feet should be used. No changes to the Ordinance have been made and staff seeks guidance on these potential changes. Avon Equivalent Telluride Equivalent Aspen Equivalent 2177 Saddle Ridge (3592 SF)1,446$ 32,501$ 30,214$ 465 Paintbrush (10912 SF)1,446$ 186,953$ 159,205$ Bear Trap Remodel (4293 to 5657 SF)-$ 14,216$ 23,638$ ATTACHMENT 2 • Government Inclusion in requirements – Who is exempt? Staff updated the language to represent a more realistic view of valley needs. All government entities are constructing things for a public purpose, and Town should not burden that objective. Community Housing projects are not exempt, because they would presumably have deed restrictions attached to them. • Funds eligible to be returned in 7 years? Staff deleted this language from the CTA and proposes no time limit. There is no obligation to return fees, however, there is an obligation to place fees in separate account for housing specific purpose. • Sheraton Mountain Vista The required housing mitigation for the Sheraton Mountain Vista PUD development on Lot C, Avon Center at Beaver Creek, included 20 units of deed restricted housing, constructed as eight (8) studio, eight (8) 1-bedroom, two (2) 2-bedroom, and two (2) 3-bedroom deed restricted units. The square footage of these units is smaller than the minimum size requirements in the proposed standards. A total of 7,712 square feet of employee housing was constructed. Under the proposed regulations, 14,250 square feet would be required for new housing mitigation. However, staff believes these units are functioning in a manner to provide housing for 35-36 employees. Therefore, staff supports the application of the employee mitigation plan based on the bedroom count rather than the new proposed minimum square footage requirement. Based on the bedroom count, the 20 units of employee housing mitigation constructed by Sheraton Mountain Vista amounts to 35.5 Employee Equivalents under the proposed formulas. The existing Sheraton Mountain Vista Phase 1 timeshare building would have required employee housing mitigation in the amount of 14.57 Employee Equivalents, as demonstrated on the Mitigation Requirement sheet prepared as part of the March 12 staff report, attachment 3. Staff suggests that the balance of 20.93 Employee Equivalents (35.5 - 14.57) could be allocated as a credit for employee housing mitigation for additional development of Sheraton Mountain Vista, Lots 2, 3 and 5 under the proposed inclusionary housing regulations, for a total of 627 timeshare units. Below is a breakdown of the unit types, square footage, and Employee Equivalents. Unit Bedrooms Square Feet Employee Equivalent Square Feet Required by Proposed Code E201 3 849 3.5 1,225 E301 3 807 3.5 1,225 E202 2 497 2.25 900 E302 2 495 2.25 900 E203 1 405 1.75 750 E204 1 405 1.75 750 E205 1 405 1.75 750 E206 1 405 1.75 750 E303 1 405 1.75 750 E304 1 405 1.75 750 E305 1 405 1.75 750 E306 1 405 1.75 750 E207 0 222 1.25 500 E208 0 230 1.25 500 ATTACHMENT 2 E209 0 230 1.25 500 E210 0 230 1.25 500 E307 0 222 1.25 500 E308 0 230 1.25 500 E309 0 230 1.25 500 E310 0 230 1.25 500 TOTAL 18 7712 35.5 14,250 • Eagle County Affordable Housing Guidelines update Eagle County’s guidelines mentioned in the March 12, 2019 staff report deserve a closer look. These guidelines apply for all commercial projects and all residential projects with three (3) or more units, including government non-profit. According to the Eagle County Affordable Housing Guidelines, for residential developments, the mitigation rate: “Is the higher of 1) 25% of the total residential units in a Project or 2) 15% of the total residential Square Footage of a Project… This Inclusionary Housing mitigation rate is substantially below the 61% of residential units in Eagle County that are currently occupied by local residents. As Eagle County is aware that not all local residents desire to live in Affordable Housing, this lower rate is justified.” “…For commercial developments, an applicant should mitigate the impact on Eagle County’s housing stock by building Affordable Housing for at least 45% of the new employees generated by the project that will earn less than 140% of AMI. This 45% mitigation rate is based on the percentage of Cost Burdened Households in Eagle County…Mixed Use Developments Eagle County typically encourages mixed-use developments. If both Commercial Mitigation and Inclusionary Housing requirements apply because the application contains a mix of Commercial Development and Residential Development, then the higher of the Affordable Housing requirement for Commercial Mitigation or Inclusionary Housing will apply. “ Tori Franks states that most properties in unincorporated Eagle County is single-use, or that the residential rates have been applied to mixed use development. Methods of housing mitigation for Eagle County are shown below: 1. Price Capped For Sale Housing with a maximum Initial Sales Price set at or below 100% AMI affordability level will be given full credit. 2. Affordable Rental Housing with a deed restriction requiring rents to be set at or below the 80% AMI affordability level maybe given increased credit if a recent market analysis shows the need for additional Affordable Rental Housing in the rental project’s location. 3. Resident Occupied For Sale Housing, which includes a 2.0% transfer fee on all sales to non-Eligible Households, without regard to AMI, will be given 0.50x credit. 4. A donation of land to ECHDA within a reasonable vicinity of the applicant’s Project will be given 0.50x credit. 5. Off Site Development will be given 0.50x credit. In cases where the off site location has a higher Affordability Gap than the development site, full credit maybe awarded. 6. A Payment in Lieu may be made to ECHDA. 7. An applicant may use Affordable Housing Credits. 8. Other Public Benefits may be provided to offset some portion of Affordable Housing. ATTACHMENT 2 To the right is an estimate of the mitigation based on Eagle County guidelines, next to the proposed Mitigation estimation from this CTA. Note that because there is no Property Management category in the Eagle County guidelines, staff credited that category with the Residential rate for the Eagle County mitigation calculation. Sheraton Mtn Vista USE TOA Mitigation EC Mitigation Lodge/Hotel 12.0 54.0 Prop. Management 0.0 0.0 Commercial SF 2.6 11.5 14.6 65.5 Wyndham USE TOA Mitigation EC Mitigation Lodge/Hotel 4.9 22.2 Prop. Management 0.0 0.0 Commercial SF 0.5 2.1 5.4 24.3 Lot B Hotel USE TOA Mitigation EC Mitigation Lodge/Hotel 9.5 42.6 Prop. Management 0.1 1.0 Commercial SF 0.1 0.6 9.7 44.2 Colorado World Resorts USE TOA Mitigation EC Mitigation Lodge/Hotel 0.0 0.0 Prop. Management 2.7 20.3 Commercial SF 0.0 0.0 2.7 20.3 Town Council Hypothetical USE TOA Mitigation EC Mitigation Lodge/Hotel 6.7 36.0 Prop. Management 0.3 2.5 Commercial SF 1.2 6.3 8.2 44.8 ATTACHMENT 2 ATTACHMENTS ATTACHMENT 1: Ordinance 19-03 ATTACHMENT 2: March 12, 2019 Town Council Staff Report ATTACHMENT 3: Eagle County Housing Tools Matrix ATTACHMENT 4: Sections from the Town of Avon Community Housing Plan ATTACHMENT 5: Public Comment LINKS Eagle County Affordable Housing Guidelines https://www.eaglecounty.us/Housing/Documents/2014_Housing_Guidelines_May_13/ Avon Comprehensive Plan Master Appendix Tables http://avon.org/DocumentCenter/View/19348/Comprehensive-Plan-Master-Appendix ATTACHMENT 2 TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: David McWilliams, AICP, Town Planner Matt Pielsticker, AICP, Planning Director Date: March 12, 2019 Topic: FIRST READING OF ORDINANCE 19-03, APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE, FOR INCLUSIONARY ZONING AND DEVELOPMENT BONUS REGULATIONS ACTION BEFORE COUNCIL Before Council is action on First Reading of Ordinance 19-03, approving amendments to Title 7 of the Avon Municipal Code for Inclusionary Zoning and Development Bonus Regulations AVAILABLE ACTIONS - Continue 1st Reading of Ordinance 19-03 to a future meeting, pending additional information. This would allow for a discussion and direction to return with additional information. - Approve 1st Reading of Ordinance 19-03, thereby setting a public hearing date of April 9, 2019. RECOMMENDED MOTION “I move to approve first reading of Ordinance 19-03, setting a public hearing date of April 9, 2019.” CODE TEXT AMENDMENT PROCESS CODE TEXT AMENDMENT REVIEW CRITERIA The review procedures for this application are governed by the Development Code. According to the AMC §7.16.040(c), Review Criteria, the PZC and Town Council shall use the following review criteria as the basis for recommendations and decisions on applications to amend the text of the Development Code: (1) The text amendment promotes the health, safety and general welfare of the Avon community; (2) The text amendment promotes or implements the goals and policies of the Avon Comprehensive Plan; (3) The text amendment promotes or implements the purposes stated in the Development Code; or (4) The text amendment is necessary or desirable to respond to changed conditions, new planning concepts or other social or economic conditions. Staff Response: The amendments are timely in addressing the housing needs of the Town and the greater Eagle County community, a condition seems to only be getting more pressing. They promote the health, safety and welfare of the community by linking jobs generated to the provision of housing. They implement the goals and policies of the Comprehensive Plan, specifically “Achieve a diverse range of housing densities, styles, and types, including rental and for sale, to serve all segments of the ATTACHMENT 2 population,” “Coordinate with neighboring communities to provide an attainable housing program that incorporates both rental and ownership opportunities, affordable for local working families,” and the ACHP. They conform to the Development Code purposes, specifically (n), “Achieve a diverse range of attainable housing which meets the housing needs created by jobs in the Town, provides a range of housing types and price points to serve a complete range of life stages and promotes a balanced, diverse and stable full time residential community which is balanced with the visitor economy.” SUMMARY OF PROPOSED CHANGES Two code text amendments are proposed for the Avon Development Code (ADC) relating to community housing. Employee Housing Mitigation Staff was directed, through the Avon Community Housing Plan (ACHP sections, Attachment 4; full document linked below), to determine an approach for inclusionary zoning and commercial linkage. Many communities in the valley and the state have these programs in an attempt to offset housing from the production of jobs that a new development generates. Included as Attachment 3 is a matrix, created by the Valley Home Store, of practices in neighboring communities. The proposed strategy does not explicitly meet the ACHP income range goal for Area Median Income (AMI) between 80% -120%, but the many of the units provided are expected to be in the Town Core, and accessible to transit, groceries, and other associated amenities, making them desirable to a wide array of residents. PZC work sessions and public hearings informed staff to include updated criteria defining the affordability range to include the above referenced AMI level, specify the “up or mid valley” (defined by the Eagle River Valley Housing Needs and Solutions plan, linked below) as the required location for the provision of off-site housing, and change the fee-in-lieu requirements. Below is a list of some of the properties that staff imagines may be subject to the inclusionary zoning requirements in the foreseeable future given the underdeveloped (or undeveloped) nature of the properties. It would not apply to properties with vested rights (like the Riverfront or Village at Avon). They are represented visually to the left. PZC’s recommendation to Town Council includes a condition to recognize the contribution of Lot C Avon Center at Beaver Creek subdivision (the Sheraton) for having provided twenty (20) units during the original PUD development. Since then, Lot C rezoned from PUD to Town Center, and would be required to offset employees during any development application. Staff has included language in the draft Ordinance to call out and acknowledge the unique circumstance whereby Lot C provided upfront community housing units that exceed the target goals in the Ordinance. ATTACHMENT 2 Staff investigated where the employee generated number (.8 per room for Lodge / Hotel; .4 per room for property management; 2.8 per 1,000 square feet of commercial; .33 per residential dwelling unit) originated from. These numbers (except for the residential rate) are currently included in the ADC despite there being no offset required. Staff found that these number come from the 2008 Eagle County Nexus/Proportionality Analysis for Commercial Development/Workforce Housing Linkage report generated in January 2008 (included as a link below). The report surveyed 2,169 employers from mountain communities to determine these numbers. This number is used currently in Eagle County to determine mitigation rates for certain development applications. The linkage formulas continue to be used by Eagle County for calculations. The residential rate came from Telluride’s policy. The Mitigation Plan Required is subject to Community Development Director approval and includes five (5) Design Requirement types: (1) on–site construction; (2) off-site construction within Avon; (3) off-site construction outside Avon but in the “Up or Mid Valley”; (4) Deed restricting existing units within or outside of Avon but in the “Up or Mid Valley”; and (5) Fees-in-Lieu to for the fractional remainder. Allowing the provision of mitigation outside of Town boundaries is one of many important policy decisions this Amendment proposes. Also, the proposed language does not prioritize the type of mitigation provision (except for the fee-in-lieu). Instead, staff anticipates that applicants will devise creative methods of mitigation with the options available and does not want to unnecessarily burden development with Design Requirement typology limitations. Town Council should carefully weigh the implications of these measures. The Minimum Size of Housing Units (TABLE 7.20-15) is based in part off current code provisions for employee housing. Staff created the table with the assumption that while not directly tied to the AMI ranges contemplated in the ACHP, the type and location would be attractive. Below is the table, with another column that describes the square footage per employee that code would require. Building or complex name Address Acres Benchmark Shopping Center 82 Beaver Creek Boulevard 2.13 1st Bank 11 West Beaver Creek Boulevard 1.714 Christy Sports 182 Avon Road 0.928 Annex 142 Benchmark 1.496 Nottingham Commercial Lots 121 - 111 Nottingham Road 1.067 Avon Center Lot C 160 West Beaver Creek Boulevard 2.28 160 West Beaver Creek Boulevard 0.583 Nottingham Ranch 68-95 Post Boulevard 3.8 Chapel Square parcels 92 Benchmark 2 140 Benchmark 2.864 230 Benchmark 1.08 Avon Plaza 150 East Beaver Creek Boulevard 1.33 North-71 91 Beaver Creek Place 0.57 ANB Bank 71 Beaver Creek Place 0.76 51 Beaver Creek Place 0.59 ATTACHMENT 2 After some deliberation with PZC, the fees-in-lieu portion of the process is proposed to only be triggered when less than a single unit is required for mitigation. Staff feels that this achieves the intent of the code section by generating units and not money. As written, the code requires Town Council to approve a resolution to determine the fee structure. An example of a proposed fee structure (taken from the Eagle County Affordable Housing Guidelines: Administrative Procedures) is illustrated below, with 80% and 100% AMI levels to illustrate the difference depending or other factors as appropriate. Calculation of Fee in Lieu 80% AMI 100% AMI Area Median Income for Family of 3 $ 62,640 $ 78,300 Maximum Initial Sales Price $ 213,150 $ 266,156 Affordable Price per square Foot $ 189.25 $ 236.31 Market Price per Square foot $ 350.60 $ 350.60 Administrative Fee 15% 15% Payment in Lieu per Square Foot $ 186.55 $ 131.43 Staff estimates the table below to be a fair representation of the current Inclusionary Zoning/ Commercial Linkage requirements of other jurisdictions. Staff does not guarantee these numbers but trusts that they provide a fair estimate of the overall appetite in different mountain communities. Some communities highly value employee housing but use different mechanisms to attain it. Jurisdiction Commercial Rate Residential Rate Eagle County 45% 45% Telluride 40% 60% Vail 20% 10% of GRFA San Jose, CA 20% 20% Basalt 20% 25% San Miguel County 15% 15% Snowmass 60% 60% Aspen/Pitkin 60% 60% Mt. Crested Butte ? 15% Crested Butte none none Frisco none none Silverthorne none none ATTACHMENT 2 Finally, staff put everything together and analyzed the development scenarios for some recent projects to calculate the hypothetical mitigation regime needed. The table on the following page illustrates the estimated “footprint” of various projects and the accompanying number and type of units (and fee-in-lieu) that would be required for compliance with the code. The employee units required could be provided through any of the methods found in section 7.20(d). Note that staff interprets the Colorado World Resorts project to be under the “Property Management” Jobs Generated (.4 jobs per unit) category, as opposed to the other properties that are under “Lodge/ Hotel” (.8 jobs per unit). ATTACHMENT 2 USE Units Emp. Rate Jobs Jobs/ Emp. Total Emp. Mitigation Rate Emp. Mitigation Required 3br 2 br 1 br Stud. Left Over 80% AMI Fee 100% AMI Fee Lodge/Hotel 190 .8/Rm 144 1.2 120.0 10%12.00 Prop. Management 0 .4/Rm 0 1.2 0.0 10%0.00 Commercial SF 11,000 2.8 30.8 1.2 25.7 10%2.57 14.57 4 0.57 42,009$ 29,756$ Wyndham USE Units Emp. Rate Jobs Jobs/ Emp. Total Emp. Mitigation Rate Emp. Mitigation Required 3br 2 br 1 br Stud. Left Over 80% AMI Fee 100% AMI Fee Lodge/Hotel 74 .8/Rm 59.2 1.2 49.3 10%4.93 Prop. Management 0 .4/Rm 0 1.2 0.0 10%0.00 Commercial SF 1,956 2.8 5.4768 1.2 4.6 10%0.46 5.39 1 1 0.64 47,481$ 33,632$ USE Units Emp. Rate Jobs Jobs/ Emp. Total Emp. Mitigation Rate Emp. Mitigation Required 3br 2 br 1 br Stud. Left Over 80% AMI Fee 100% AMI Fee Lodge/Hotel 142 .8/Rm 113.6 1.2 94.7 10%9.47 Prop. Management 4 .4/Rm 1.6 1.2 1.3 10%0.13 Commercial SF 536 2.8 1.5008 1.2 1.3 10%0.13 9.73 2 1 0.98 72,369$ 51,261$ Colorado World Resorts USE Units Emp. Rate Jobs Jobs/ Emp. Total Emp. Mitigation Rate Emp. Mitigation Required 3br 2 br 1 br Stud. Left Over 80% AMI Fee 100% AMI Fee Lodge/Hotel 0 .8/Rm 0 1.2 0.0 10%0.00 Prop. Management 81 .4/Rm 32.4 1.2 27.0 10%2.70 Commercial SF 0 2.8 0 1.2 0.0 10%0.00 2.70 1 0.95 70,509$ 49,943$ Sheraton Mtn Vista Lot B Hotel ATTACHMENT 2 Development Bonus The Development Bonus section was originally proposed in 2009 as part of the ADC overhaul. Staff decided to propose an updated version of this section as an appropriate method to gain additional employee housing or other public benefits when applicants are seeking certain relief from the ADC. This is a likely alternative to the PUD process (of negotiated zoning) that should still combine public benefits with appropriate design. Benefits to the Town include: • Housing • LEED or similar certification • Public parking or transit contribution • Pedestrian enhancements • Streetscape enhancements • Water rights dedication Where an applicant may be allowed leniency in the following development standards: • Increased building height • Lot coverage (for the Town Center District) • Reduced parking minimums • Reduced building permit fees • Increased residential density (in the Residential High-Density RH district) • Reduced landscape area • Landscape unit requirements The list of benefits and leniency types could be reduced as Town Council finds appropriate. For example, Housing could be the only benefit type, and could only result in an increase of density. This specific example of a narrowed approach is not anticipated to provide for any additional housing in the Town Center Zone district, as there is no density maximum in that zone district. Since the PZC work sessions and public hearings, staff updated the language to include a housing density bonus applicable to the R-H (residential high-density) zone district, where the dimensional standards include a density maximum of dwelling units per acre. An applicant would have the ability to negotiate an increase to the units per acre of the project based on the provision of community housing units, defined as reaching an AMI of 80% -140%. This example came from Frisco, where the bonus is not part of a negotiated process, but by-right in certain zone districts near their core. ATTACHMENTS ATTACHMENT 1: Ordinance 19-03 ATTACHMENT 2: PZC Record of Decision and Recommendation ATTACHMENT 3: Eagle County Housing Tools Matrix ATTACHMENT 4: Sections from the Town of Avon Community Housing Plan ATTACHMENT 5: Public Comment LINKS 2008 Eagle County Nexus/ Proportionality Analysis for Commercial Development/ Workforce Housing Linkage https://www.eaglecounty.us/Housing/Documents/2008_NEXUS_commercial(4)/ Town of Avon Community Housing Plan https://www.avon.org/DocumentCenter/View/18728/Avon-Housing-Plan?bidId= ATTACHMENT 2 Summary of Inclusionary Zoning Practices in Colorado Communities – Chafee County http://www.chaffeehousing.org/EndUserFiles/57044.pdf Eagle River Valley Housing Needs and Solutions http://minturn.org/pdf/PublicNotices/2018%20Eagle%20Valley%20Housing%20Needs%20and%20S olutions%20FINAL.pdf ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 3 The Comprehensive Plan: • 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. Goals and Objectives of this Housing Plan are as follows: • Focus on increasing deed restricted homeownership opportunities for households making equivalent of 140% or less of the Area Median Income - $430,000 for a household of three people in 2018. • Grow the inventory of homeownership and “missing middle” inventory, in place of additional rental housing stock, to create a more balanced portfolio with a long - term goal of 50% rental, 50% ownership. • When considering new rental housing, prioritize price point, quality and amenities attractive to “step up” renters and seniors looking to downsize, focusing on the 80- 120% AMI level. • Stabilize or increase the percentage of year-round residents; currently 55% of all dwelling units in Avon are occupied by year-round residents. • Stabilize or increase the percentage of Eagle County working residents Avon. • Seek to add at deed restricted units to the inventory in the short term. • Strengthen regional partnerships with other communities and entities (i.e. Habitat for Humanity, other municipalities, Eagle County) to make projects happen. • As sites redevelop, strive for “no net loss” of units in the 80-120% AMI range, and when possible, increase housing serving the local year-round population. • Re-evaluate goals and objectives on an annual basis, including the ongoing monitoring of new projects and housing stock in the mid-valley; appendices may be updated by Resolution. Strengths and Assets • An inventory of 670 price-controlled housing units, 63 of which are deed restricted for sale units that were a result of successful PUD negotiations; Policy • Update mitigation/linkage policies to be more proactive in addressing 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. Inclusionary housing is a tool to create housing affordable to locals. 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 ATTACHMENT 4 policy goals, and maintain a level playing field for commercial and residential development. 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 residential 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 ATTACHMENT 4 ATTACHMENT 5 ATTACHMENT 5 1 From: Bette Todd Date: May 28, 2019 at 4:58:52 PM MDT To: <councilmembers@avon.org ssmith@avon.org>, <jfancher@avon.org>, <sprince@avon.org>, <tunderwood@avon.org>, <cthuon@avon.org>, <jwolf@avon.org>, <eheil@avon.org> Subject: Ordinance 19‐03 Dear Avon Town Council, I had hoped to attend tonight's meeting to listen to the discussion on Community Housing and more importantly testify concerning Ordinance 19-03. Unfortunately, my schedule did not allow me to attend. My apologies for this late email. Please include this in the public record. With regard to Ordinance 19-03 I would like to share the following questions and comments.: 1) Section 3 (a): Purpose: The statement is somewhat difficult to interpret in terms of the meaning of "development." Is "development" to be interpreted to mean any and all development within the county? Page 5: 4 i. (b) and iii. It appears if deed restricted housing mitigation units are proposed to be purchased outside the Town, HOA's must approve if required to do so. That opportunity does not appear to exist for HOA's within Avon. What is the logic and intent of this language? There is a difference between "not prohibited" and HOA approval required. It is very unclear how this would work in Avon if HOA approval is required. Deed restricted would't be prohibited where HOA approval is required, yet it appears there is no vehicle for HOA input within Avon for this situation. Is it intended that the Town would decide? Is this really the intent? Certainly Avon HOA's deserve equal treatment with HOA's outside of the Town. I think this needs to be clarified. Page 6: Mitigation Plan required (3): If after approval of a development plan (which approval would hopefully be made by Town Council) would you want changes to the mitigation plan approved at staff level or council level? If Ordinance 19-01 is approved, there could be financial concessions made for "Community Housing" as part of a development plan which contains mitigation units. It's a little confusing where any changes in numbers or size or location of mitigation units would be better processed given financial concessions could be part of those projects. Lastly, I heard discussion at prior council meetings about making Ordinance 19-03 applicable to single family residential additions. I am relieved this does not appear in the final version of the ordinance for approval tonight. For many reasons, I do not support penalizing Avon residents who want to improve their homes with a "tax" or "fee" intended to encourage workforce housing. I have a number of other comments and questions on Ordinance 19-01 which I do not have time to address here. I hope Ordinance 19-01 will be postponed for further discussion as it may result in many unintended consequences without further study. I'm sure you all realize it was difficult to process all the information in this week's packet over the holiday weekend. Respectfully, Bette Todd ATTACHMENT 5 TOWN MANAGER REPORT Page 1 of 2 TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Ordinance No. 19-04 Amending Section 9.12.080 to Authorize Town Council and Town Manager to Designate Events that Allow Persons over Twenty-One Years of Age to Bring and Consume Alcohol Beverages on Town Properties DATE: June 5, 2019 SUMMARY: The Colorado legislature changed the state liquor laws to allow local governments to authorize open container alcohol consumption on municipal properties (e.g. BYOB in the park). The current municipal code prohibits the public from bringing and consuming their own alcohol on public properties. Ordinance No. 19-04 would authorize the Town Council and the Town Manager to allow the general public to bring their own alcohol to specifically designated events and properties. Specific events, times and rules can be established at later time, as appropriate. Ordinance No. 19-04 only adds the new state authorization to the existing municipal code. Due to the timing of first and second reading and the required thirty days for a new ordinance to take effect, first reading is present so that the Town has the ability to designate events that allow brining your own alcohol by mid-July. No specific “bring your own alcohol” events are identified at this time and such designation is not considered appropriate for any of the Town’s planned special events. However, this would allow the flexibility to add community and family oriented events in the park where permitting “bring your own alcohol” may be appropriate. Council passed first reading of Ordinance NO. 19-04 at the May 28, 2019 regular meeting. Ordinance No. 19-04 is presented to Council for second and final reading. Council must conduct a public hearing on second reading in accordance with the Avon Home Rule Charter. BACKGROUND: The question of whether the Town of Avon can legally authorize events whereby the general public can bring their own alcohol to events on Town property has been asked every summer for years. Other mountain communities have more or less allowed the general public to bring their own alcohol to communities at municipal properties, especially for events on community park properties in the summer. State law previously disallowed permitting the general public to bring and consume alcohol on public properties. The only means of permitting alcohol on public properties has been through a liquor license permit or by a private event limited to invitees only. Last year, the Colorado Legislature enacted Senate Bill 18-243. Section 11 of Senate Bill 18-243 amended Colorado Revised Statutes (C.R.S.) Sec. 12-47-910(h)(VII) to state that, “. . . it is not unlawful for a person who is at least twenty-one years of age to consume any fermented malt beverage or malt, vinous, or spiritous liquor in any public place . . . specifically authorized by ordinance, resolution or rule adopted by a municipality . . . . ” AMC Sec. 9.12.080 does not currently include this authorization. Ordinance No. 19- 04 would implement Section 11 of Senate Bill 18-243 by authorizing the Town Council and Town Manager to designate specific events and times on Town property where the general public may be able to bring and consume their own alcohol. The expectation is that this would be primarily events in Nottingham Park. The expectation and intent is not to allow the general public to bring and consume their own alcohol during all park hours. Details concerning designation, notice, signage and enforcement are not yet determined, but are expected to be determined administratively with input from the CASE Manager, Recreation Department and Police Department. Page 2 of 2 AMC 9.12.080 is reprinted for convenience with the additional language to implement Section 11 of Senate Bill 18-243 shown as an added sub-paragraph. AMC 9.12.080 - Drinking on public property and public rights-of-way without permit prohibited. (a) It is unlawful for any person to consume any malt, vinous or spirituous liquors or fermented malt beverages upon any street, alley, sidewalk, park, public property, public building or public parking lot in the Town or in any vehicle upon such places unless authorized in this Section 9.12.080. (b) It is unlawful for any person to possess or have in his or her possession or under his or her control in or upon any street, alley, sidewalk, park, public building or public parking lot in the Town, any malt, vinous or spirituous liquors or fermented malt beverages in any container of any kind or description which has been opened or which is not sealed or upon which the seal is broken, except in areas permitted pursuant to Subsection (c) of this Section. The word sealed means the regular seal applied by the United States Government over the cap of all malt, vinous or spirituous liquors or fermented malt beverages. It shall not be unlawful for any person to have in his or her possession or under his or her control one (1) opened container of vinous liquor removed from a licensed premises pursuant to Section 12-47-411(3.5), C.R.S. (c) Consumption and possession of malt, vinous or spirituous liquors or fermented malt beverages on public property and/or public rights-of-way is permitted under the following limited circumstances: (1) Pursuant to the time, location and limitations of a special events permit that has been issued pursuant to Article 48, Title 12, C.R.S.; (2) Pursuant to a private event permit when such person is a member or guest of a qualifying organization and which event meets the qualifications for exemption from special event permits pursuant to Section 12-48-108, C.R.S., except that the consumption of spirituous liquors shall not be permitted by any person at an event which meets the qualifications for exemption from special event permits pursuant to Section 12-48-108, C.R.S.; and, (3) Pursuant to a private event permit that meets the minimum requirements of Section 9.40.040. (4) Pursuant to a designation by the Town Council or the Town Manager to permit persons who are at least twenty-one years of age to bring and consume malt, vinous or spiritous liquors or fermented malt beverages on town owned properties provided that such designation specifies the date, location and hours of such designated event. OPTIONS: Council may defer consideration on first reading, which would result in delaying the effective date. MOTIONS: “I move to approve first reading of Ordinance No. 19-04 Amending Section 9.12.080 to Authorize the Town Council or the Town Manager to Designate Events that Allow Persons over Twenty- One Years of Age to Bring and Consume Alcohol Beverages on Town Properties.” ATTACHMENT: Attachment A: Ordinance No. 19-04 ORDINANCE NO. 19-04 AMENDING SECTION 9.12.080 TO AUTHORIZE TOWN COUNCIL AND TOWN MANAGER TO DESIGNATE EVENTS THAT ALLOW PERSONS OVER TWENTY-ONE YEARS OF AGE TO BRING AND CONSUME ALCOHOL BEVERAGES ON TOWN PROPERTIES WHEREAS, the Town of Avon, Colorado (the “Town”) is a home rule municipality and political subdivision of the State of Colorado (the “State”) organized and existing under a home rule charter (the “Charter”) pursuant to Article XX of the Constitution of the State; and WHEREAS, pursuant to C.R.S. §31-15-103 and §31-15-104, and pursuant to the home rule powers of the Town of Avon (“Town”), the Town Council has the power to make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of its inhabitants; and WHEREAS, Section 11 of Senate Bill 18-243 amended the state liquor code to allow municipalities to authorize consumption of alcohol beverages by persons over twenty-one years of age on public properties; and WHEREAS, the Avon Town Council finds that amendments to the Avon Municipal Code will provide greater flexibility and opportunities to create and allow community events on Town properties and with thereby promote the health, safety and general welfare of the Avon community; and WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that the Town Council desires to comply 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. 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. Enactment of Section 9.12.080(c)(4). A new Sub-Section 9.12.080(c)(4) of the Avon Municipal Code is hereby enacted to read as follows: ATTACHMENT A: Ord No. 19-04 “(4) Pursuant to a designation by the Town Council or the Town Manager to permit persons who are at least twenty-one years of age to bring and consume malt, vinous or spiritous liquors or fermented malt beverages on town owned properties provided that such designation specifies the date, location and hours of such designated event.” Section 3. Codification 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 4. Interpretation. This Ordinance shall be interpreted and applied to comply in all respects with Article X, Section 20, of the Colorado Constitution, in its application to any person or circumstance and no part of this Ordinance shall be interpreted or applied to constitute a tax policy change that would require voter approval. Section 5. Non-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 or held to be in conflict with Article X, Section 20, of the Colorado Constitution, such invalidity or conflict shall invalidate this Ordinance in its entirety. 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 6. Effective Date. This Ordinance shall take effect thirty (30) days after the date of final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 7. Safety Clause. The Town Council hereby finds, determines and declares that 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 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 8. No Existing Violation Affected. Nothing in this Ordinance shall be construed to release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing which may have been incurred or obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered, ATTACHMENT A: Ord No. 19-04 or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or declaring such penalty or liability or enforcing such right, and shall be treated and held as remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and appeals pending before any court or administrative tribunal. Section 9. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on May 28, 2019 and setting such public hearing for June 11, 2019 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado. BY: ATTEST: ____________________________ ___________________________ Sarah Smith Hymes, Mayor Brenda Torres, Deputy Town Clerk ADOPTED ON SECOND AND FINAL READING on June 11, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Kathryn Sellars, Interim Town Attorney ATTACHMENT A: Ord No. 19-04 1 PZC Meeting Abstract for Tuesday, June 4, 2019 PCZ M Planning & Zoning Commission Meeting Abstract Tuesday, June 4, 2019 I. Call to Order – 5:00pm II. Roll Call III. Additions & Amendments to the Agenda IV. Conflicts of Interest V. Temporary Use – PUBLIC HEARING File: TMP19001 Applicant: Jason Manassee with Xcel Energy Property: Block 3, Avon Landing / No address ‐ located north of I‐70 on Post Boulevard Owner: Traer Creek RP‐LLC Summary: Temporary construction staging and helicopter operations for power line repair. Action: Commissioner Barnes motioned to approve the item with the following findings and conditions: Findings: 1. The application qualifies as a Temporary Use Permit subject to review according to §7.16.020 of the Development Code; 2. The application is complete; 3. The application provides sufficient information to allow PZC to determine that the application complies with the relevant review criteria; 4. The application complies with the goals and policies of the Avon Comprehensive Plan; and 5. There is no extra demand for public services or infrastructure exceeding current capacity by the application 6. The proposal is in a non‐residential area of Avon. Conditions: 1. Helicopter operation is permitted daily between 8:00 am and 6:00 pm; 2. Helicopter fueling may require additional staff approval to ensure safety; 3. The site shall be restored to original grade and vegetation; and 4. The Temporary Use Permit is valid through September 2019. Commissioner Golembiewski seconded the motion and it carried unanimously 6‐0. VI. Variance – PUBLIC HEARING File: VAR19001 Applicant/Owner: Tom Ruemmler represented by Pedro Campos Property: Lot 111C, Block 1, Wildridge / 2011 Beaver Creek Point Summary: Application for building improvements that would encroach into areas outside the platted building envelope. Public Comment: Hough Joyce, Robert Sperberg, Mike Wong, David Scherpf, Adrienne Perer, and Tom Ruemmler commented on the application. Action: Commissioner Golembiewski motioned to deny the application with the following findings: 2 PZC Meeting Abstract for Tuesday, June 4, 2019 PCZ M 1. The development application is complete; 2. The development application provides enough information for PZC to determine if the application complies with the relevant review criteria; 3. The application was reviewed in accordance with the procedures and criteria outlined in Code Section 7.16.110; 4. The PZC held a public hearing on June 4, 2019, after providing necessary public notification in accordance with the Code; 5. The Review Criteria in Code Section 7.16.110(c) were reviewed and substantial compliance with the criteria was not demonstrated by the application materials; 6. The granting of the variance would constitute a grant of special privilege inconsistent with the setback limitations on other properties in the Beaver Creek Point PUD and surrounding community; 7. Granting the variance would be minimally detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity; 8. The enforcement of the setback/building envelope regulation would not result in practical difficulties inconsistent with the Development Code; and 9. There are no exceptional or extraordinary circumstances or conditions applicable to the site of the variance that do not apply generally to other properties in vicinity. Commissioner Barnes seconded the motion and it carried unanimously 6‐0. VII. Minor Development Plan – PUBLIC HEARING File: MNR19008 Applicant/Owner: Tom Ruemmler represented by Pedro Campos Property: Lot 111C, Block 1, Wildridge / 2011 Beaver Creek Point Summary: Application for a “garage like” addition to the house, including a deck, and roof constructed of solar panels. Public Comment: Tom Rummler commented on the application Action: Commissioner Barnes motioned to table the item. Commissioner Howell seconded the motion and it carried 6‐0. VIII. Consent Agenda A – PZC Meeting Minutes – May 21, 2019 B – Record of Decision – Reynolds Fence / MNR19004 & AEC19003 Action: Commissioner Barnes motioned to approve the consent agenda. Commissioner Golembiewski seconded the motion and it carried unanimously 6‐0. IX. Other Business A – Village at Avon Apartments Comments Action: Commissioner Barnes motioned to approve the comments referral. Commissioner Howell seconded the motion and it carried unanimously 6‐0. B ‐ Housing in IC District Action: Members of Planning and Zoning commission gave their opinion of the proposal. X. Adjourn The meeting was adjourned at 7:37pm. M E M O R A N D U M TO: Board of Directors FROM: Catherine Hayes, Board Secretary DATE: May 28, 2019 RE: Summary of Authority’s May 23, 2019, Board Meeting The following is a summary of items discussed at the May 23, 2019, Authority Board Meeting: Board members present and acting included: Acting Chair Sarah Smith Hymes, Secretary Kim Bell Williams, Treasurer Geoff Dreyer, directors Mick Woodworth and Pam Elsner, and alternate director Melissa Nelson. WaterSmart Presentation Chris Wolff, water demand management coordinator, presented information on WaterSmart customer portal. This is a new tool being rolled out for customers and the District to track and manage water use, compare use to similar households, ensure customers are adhering to the water use regulations, and detect leaks or abnormalities, among other uses. The software will be rolled out to customers in the near future. Quarterly Finance Report James Wilkins presented the Q1 finance report. He noted revenues were tracking closely to the budgeted about for the first quarter. The continued cold, snowy weather has precluded the need for early outdoor irrigation water use, so May water sales are lower than normal. Discussion ensued regarding staff efforts to update the Authority’s water system impact fees due as projects are added to the capital investment plan. Lake Powell Projected Inflow The board discussed the current water year, which saw a high volume of precipitation. This will increase the level of Lake Powell, but because of the “new normal” of a warming climate, it’s unclear how this will contribute to a total percentage of increase. 6 West Update Jim Collins and Jason Cowles updated on the 6 West development. The Authority and District received an extended escrow agreement, via a cash bond, which will be held by a title company escrow agreement in the amount of $340,000. A three-year warranty was also provided to the Authority and District, which could be extended if such a need is demonstrated. The standard warranty period is two years. Communications Update Diane Johnson said an informational pamphlet to remind customers of the water use regulations was distributed with billing statements, via mail or email. She also noted the Drought Contingency Plan was signed by all seven basin states. She explained the significance of this plan and discussed c ontinuing efforts in Colorado to come to agreement on how a “compact call” would be handled in the state. Restructuring Update Jim Collins discussed Monday’s restructuring committee meeting. Topics of ongoing discussion include a better quantification of potential cost savings; how to ensure current tenets of the Authority Agreement would be preserved and translate to the new governing board; and future legislation to allow the electors of each director district to elect that district’s board representative, rather than the current at-large system. Once staff gathers the needed data, another meeting will be scheduled.