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TC Packet 06-13-2023_______________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG MEETING NOTICES ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AVON ELEMENTARY AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK MIGUEL JAUREGUI CASANUEVA AT 970-748-4001 OR EMAIL MJAUREGUI@AVON.ORG WITH ANY SPECIAL REQUESTS. AVON TOWN COUNCIL MEETING AGENDA TUESDAY, June 13, 2023 MEETING BEGINS AT 5:10 PM (ALL START TIMES LISTED IN RED ARE APPROXIMATE) Hybrid meeting; in-person at Avon Town Hall or virtually through Zoom AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 5:00 PM (See Agenda on page 2) AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:10 PM 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA Public comments are limited to three (3) minutes. The speaker may be given one (1) additional minute subject to Council approval. 5. BUSINESS ITEMS 5.1. Presentation: Annual Police Report and Annual Police Awards (Chief of Police Greg Daly) 5.2. Presentation: Facial Recognition Accountability Report (Chief of Police Greg Daly) 5.3. First Reading Ordinance 23-02: Referring the Establishment of a Downtown Development Authority to a Special Election and Amending the Avon Municipal Code to Adopt Title 4 – Avon Downtown Development Authority (Town Manager Eric Heil) 5.4. Public Hearing: Lot 3, Mountain Vista Resort Consideration of Major Development Plan and Development Bonus (Senior Planner Jena Skinner) 5.5. Work Session: Construction Materials Use Tax & Marijuana Tax (Town Manager Eric Heil) 5.6. Findings of Fact and Record of Decision SUB23001 Hidden Valley Estates Community Housing Project (Senior Planner Jena Skinner) 6. MINUTES 6.1. Approval of May 23, 2023 Regular Council Meeting Minutes (Town Clerk Miguel Jauregui Casanueva) 7. WRITTEN REPORTS 7.1. Planning & Zoning Commission June 6 Abstract (Planner 1+ Max Morgan) 7.2. Avon Police Department Disposition on Forfeited Properties for 2022 (Chief of Police Greg Daly) 7.3. 2023 Recycling Award for Outstanding Outreach (Sustainability Coordinator Charlotte Lin) 7.4. Website Analytics (Communications & Marketing Manager Liz Wood) ** Indicates topic will be discussed at future agenda’s 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES 9. ADJOURN Public Comments: Council agendas shall include a general item labeled “Public Comment” near the beginning of all Council meetings. Members of the public who wish to provide comments to Council greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Council in advance of the Council meeting. The Mayor shall permit public comments for any action item or work session item and may permit public comment for any other agenda item, and may limit such public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. Article VI. Public Comments, Avon Town Council Simplified Rules of Order, Adopted by Resolution No. 17-05. AVON LIQUOR LICENSING AUTHORITY MEETING AGENDA TUESDAY, JUNE 13, 2023 MEETING BEGINS AT 5:00 PM (ALL START TIMES LISTED IN RED ARE APPROXIMATE) Hybrid meeting; in-person at Avon Town Hall or virtually through Zoom 1.CALL TO ORDER AND ROLL CALL 2.APPROVAL OF AGENDA 3.DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS 4.PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA [AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK . SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL .] 5.PUBLIC HEARING FOR A SPECIAL EVENTS LIQUOR PERMIT 5.1. APPLICANT NAME: BRAVO! VAIL MUSIC FESTIVAL EVENT: THE LINDA AND MITCH HART SOIREE SERIES 2023 DATE AND TIME: 6:00 PM – 11:00 PM ON JUNE 23, 2023 LOCATION: 108 PRIMROSE TYPE: SPECIAL EVENT PERMIT MANAGER: CHATHAM MAYBERRY 5.2. APPLICANT NAME: WALKING MOUNTAINS SCIENCE CENTER EVENT: A TASTE OF NATURE DATE AND TIME: 5:00 PM – 10:30 PM ON JULY 6, 2023 LOCATION: 318 WALKING MOUNTAINS LANE TYPE: SPECIAL EVENT PERMIT MANAGER: SHERRI HAHN 6.APPROVAL OF THE MINUTES FROM MAY 23, 2023 LIQUOR LICENSING AUTHORITY MEETING (LIQUOR AUTHORITY BOARD SECRETARY MIGUEL JAUREGUI) 7.WRITTEN REPORT 7.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (DEPUTY TOWN CLERK BRENDA TORRES) 8.ADJOURNMENT 970-748-4022 btorres@avon.org TO: Avon Liquor Licensing Authority FROM: Brenda Torres, Deputy Town Clerk Miguel Jauregui C., Liquor Licensing Authority Secretary RE: PUBLIC HEARING for Special Event Permit Application - Linda & Mitch Hart Soirée Series 2023 DATE: June 3, 2023 SUMMARY: Bravo! Vail Music Festival, as the Applicant, is applying for a malt, vinous, spirituous liquor special event permit to serve/sell beverages at the Linda & Mitch Hart Soirée Series 2023 special event on June 23, 2023. The Applicant has submitted materials required by the State of Colorado Liquor Enforcement Division and all materials are in order. Documents are on file in the Town Clerk’s office. The 108 Primrose premise has been posted with notice of the public hearing for this application , and no public comments were received. The event manager will be present to answer any questions about the application and the event. The Applicant has adequate proof of commercial liability insurance t hat meets the Town’s requirements and has obtained any other permit needed for this event. Background checks show no previous failure by the Applicant to comply with Special Event Permit laws and fewer than 15 special event permits issued to the Applicant this calendar year. 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 are no required findings for the issuance of a special event permit. Section 44-5- 106, C.R.S., states the grounds for denial of a special event permit 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 o f 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.” 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 Linda & Mitch Hart Soirée Series 2023 special event. A public hearing is required before final action is taken. Please note that Bravo! Vail Music Festival is acting as the Applicant for this permit. Applicant Name: Bravo! Vail Music Festival Event Name: Linda & Mitch Hart Soirée Series 2023 Event Date: June 23, 2023; 6:00 p.m. until 11:00 p.m. Location: 108 Primrose, Mountain Star Event Manager: Chatham Mayberry Permit Type: Special Events Permit -Malt, Vinous & Spirituous Liquor Page 2 of 2 PROPOSED MOTION: “I move to approve (or deny based upon statutory grounds for denial) the Special Events Permit application for the Linda & Mitch Hart Soirée Series 2023 special event on June 23, 2023.” Thank you, Brenda SPECIAL EVENTS PERMIT APPLICATION ATTACHMENTS: The Applicant for the special event permit has submitted the following materials: ✓ Attachment A: Application for a Special Event Permit (State form DR 8439) ✓ Attachment B: Alcohol Management Plan ✓ Attachment C: Diagram where liquor will be served Attachment A Attachment B Attachment C 970-748-4022 btorres@avon.org TO: Avon Liquor Licensing Authority FROM: Brenda Torres, Deputy Town Clerk Miguel Jauregui C., Liquor Licensing Authority Secretary RE: PUBLIC HEARING for Special Event Permit Application - A Taste of Nature DATE: June 3, 2023 SUMMARY: The Walking Mountains Science Center, as the Applicant, is applying for malt, vinous, spirituous liquor permit to serve/sell beverages at the A Taste of Nature special event on July 6, 2023. The Applicant has submitted materials required by the State of Colorado Liquor Enforcement Division and all materials are in order. Documents are on file in the Town Clerk’s office. The 318 Walking Mountains Lane premises have been posted with notice of the public hearing for this application, and no public comments were received. The event manager will be present to answer questions about the application and the event. The Applicant has adequate proof of commercial liability insurance that meets Town requirements and has obtained any other permit needed for this event. Background checks show no previous failure by the Applicant to comply with Special Event Permit laws and fewer than 15 special event permits issued to the Applicant this calendar year. 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 lo cal 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. An entity 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. Section 44-5-106, C.R.S., 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 th e 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.” 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 A Taste of Nature special event. A public hearing is required before final action is taken. Please note that the Walking Mountains Science Center is acting as the Applicant for this permit. Applicant Name: Walking Mountains Science Center Event Name: A Taste of Nature Event Date: July 6, 2023 5:00 p.m. – 10:30 p.m. Location: 318 Walking Mountains Lane Event Manager: Sherri Hahn Permit Type: Special Events Permit -Malt, Vinous & Spirituous Liquor Page 2 of 2 PROPOSED MOTION: “I move to approve (or deny based upon statutory grounds for denial) the Special Events Permit application for the A Taste of Nature special event on July 6, 2023 from 5:00 p.m. to 10:30 p.m.” Thank you, Brenda SPECIAL EVENTS PERMIT APPLICATION ATTACHMENTS: The Applicant for the special event permit has submitted the following materials: ✓ Attachment A: Application for a Special Event Permit (State form DR 8439) ✓ Attachment B: Alcohol Management Plan ✓ Attachment C: Diagram where liquor will be served Attachment A Attachment B Attachment C AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES TUESDAY, MAY 23, 2023 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Page 1 1. CALL TO ORDER AND ROLL CALL The meeting was hosted in a hybrid format, in-person at Avon Town Hall and using zoom.us. Chairwoman Amy Phillips called the May 23, 2023 Liquor Licensing Authority meeting to order at 5:00 p.m. A roll call was taken, and present were Board Members Lindsay Hardy, Ruth Stanley, Chico Thuon, and Vice Chairwoman Tamra Underwood and Chairwoman Amy Phillips. Board members RJ Andrade and Rich Carroll were absent. Also present were Town Manager Eric Heil, Town Attorney Karl Hanlon, Deputy Town Manager Patty McKenny, General Government Manager Ineke de Jong, Town Clerk Miguel Jauregui Casanueva, Police Chief Greg Daly, Community Development Director Matt Pielsticker, Recreation Director Michael Labagh, Finance Director Scott Wright and incoming Finance Director Paul Redmond, Public Works Director Eva Wilson, and Cultural Arts and Special Events Manager Danita Dempsey. 2. APPROVAL OF AGENDA Video Start Time: 00:00:38 Chairwoman Phillips initiated the meeting with the Agenda approval process, and Vice Chairwoman Underwood requested it be amended to include an update from Town Attorney Karl Hanlon in reference to temporary wine displays at Avon’s City Market, to be added as Item 5.2. Vice Chairwoman Underwood then moved to approve the Agenda, as amended. Board member Hardy seconded the motion. It was approved with a 5-0 vote of those present. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:01:29 Chairwoman Phillips asked if there were any conflicts of interest related to the amended Agenda, and none were disclosed. 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA Video Start Time: 00:01:38 Chairwoman Phillips explained that public comment can be made by participating in the meeting in person, via zoom’s video/audio, via telephone, or via email. She then clarified that the public comment section is intended for items not listed in the Agenda, and participation by members of the public is limited to 3 minutes. She asked if there was any public comment from those present in the room or on Zoom and none were made. 5. PUBLIC HEARING FOR A SPECIAL EVENTS LIQUOR PERMIT Video Start Time: 00:02:00 5.1. APPLICANT NAME: EDUCATION FOUNDATION OF EAGLE COUNTY EVENT: EVENING OF STARS DATE AND TIME: 6:00 PM – 9:00 PM ON JUNE 2, 2023 LOCATION: 1 LAKE STREET – HARRY A. NOTTINGHAM PARK/PAVILION TYPE: SPECIAL EVENT PERMIT MANAGER: TESSA KIRCHNER Town Clerk Miguel Jauregui Casanueva delivered a brief introduction related to the Evening of the Stars special event liquor permit application, joined by event organizer Wendy Rimel with the Education Foundation of Eagle County. He laid out that the application met the requirements of the public hearing posting, the insurance, background checks, and alcohol management plan, as part of the special event permit checklist. AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES TUESDAY, MAY 23, 2023 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Page 2 Ms. Rimel responded to questions from the Board and added this is the 28th year the event is held as a celebration for Eagle County School District staff. Chairwoman Phillips asked if there was any public comment from those present in the room or on Zoom and none were made. Board member Hardy moved to approve the Special Events Permit application for Education Foundation of Eagle County for their Evening of Starts special event on June 2, 2023, from 6:00 p.m. to 9:00 p.m. Board member Thuon seconded the motion. It was approved with a 5-0 vote of those present. 5.2. CITY MARKET’S TEMPORARY DISPLAYS OF WINE: UPDATE ON COMPLIANCE VIDEO START TIME: 00:07:33 Town Attorney Karl Hanlon provided an update to the Board on state liquor laws and regulations related to temporary displays of wine, and a summary of the Department of Revenue Colorado Liquor Enforcement Division’s Bulletin 22-04 and its impact on wine bottle aisle endcaps at grocery stores. It was noted that temporary wine displays at Avon’s City Market currently comply with applicable laws and regulations. 6. APPROVAL OF THE MINUTES FROM JANUARY 24, 2023 MEETING Video Start Time: 00:10:28 With no discussion or correction, Board Member Thuon moved to approve the liquor license meeting minutes for Tuesday, January 24, 2023, as presented. Vice Chairwoman Underwood seconded the motion. It was approved with a 5-0 vote of those present. 7. WRITTEN REPORT 7.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (DEPUTY TOWN CLERK BRENDA TORRES) 8. ADJOURNMENT There being no further business before the Liquor Licensing Authority, Chairwoman Phillips moved to adjourn the meeting. The time was 05:11 p.m. These minutes are only a summary of the proceedings of the Local Liquor Licensing Authority 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: ____________________________________ Miguel Jauregui Casanueva, Liquor Authority Secretary APPROVED: Amy Phillips ___________________________________ Tamra Underwood Ruth Stanley Chico Thuon Lindsay Hardy (970) 748-4022 btorres@avon.org AVON LIQUOR LICENSING AUTHORITY WRITTEN REPORT To: Avon Liquor Licensing Authority From: Brenda Torres, Deputy Town Clerk Miguel Jauregui Casanueva, Liquor Licensing Authority Secretary Date: June 5, 2023 Topic: REPORT ON RECENT LIQUOR LICENSE 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 new criminal activity on the background and there are no liquor code violations during the last year. Renewals require notice to be posted for seven days and Special Event Permits for ten 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 23, 2023, the Town has received 3 Renewal applications that have met all the requirements for administrative review and approval and were ultimately approved by the Deputy Town Clerk. No comments, complaints, or request for hearings were received. They are as follows: Renewals: Applicant: Yerf LLC d/b/a Ticino Italian Restaurant Location: 100 W Beaver Creek Blvd. Unit 127 Type: Hotel and Restaurant (City) Manager: Sasha Frey Applicant: East West Resort LLC & Avon Riverfront LLC d/b/a Westin Riverfront Resort & Spa & Maya Location: 126 Riverfront Lane Type: Resort Complex (City) Manager: Brian Harrier Applicant: Wills Investments VII LLC & 7 Eleven INC d/b/a 7 Eleven #34209B Location: 8 Nottingham Road Type: Fermented Malt Beverage and Wine (City) Manager: Donald Wills (970) 748-4040 gdaly@avon.org TO: Honorable Mayor Phillips and Council members FROM: Greg Daly, Chief of Police RE: Avon Police Department Presentation of 2022-2023 PD Awards DATE: June 13, 2023 PRESENTATION OF AVON POLICE DEPARTMENT 2021 AWARDS: As Chief of Police, it is with great pleasure and honor that I present the following Avon Police Department Awards for the latter half of 2022 and for the first half of 2023. These awards are to recognize staff and community members, who have made exceptional and valiant individual and team contributions above and beyond their normal duties with the Avon Police Department or have benefited the Avon Police Department and the Town of Avon. In addition, we are recognizing other town employees and community members for their contributions to the citizens, residents, and guests of the Town of Avon. Lifesaving Medal – Awarded to members directly responsible for saving/prolonging a human life. (Extended by days or weeks) ➢ For actions resulting in the saving and prolonging of a human life on June 5, 2022. At about 1910 hours Officer Andres Sandoval was off duty recreating in the Cottonwood Pass area in Gypsum, CO. Field Training Officer Sandoval was riding an all-terrain vehicle (ATV) when he rode up to three males at a trailhead and a flipped four-wheeler ATV. One was a young male crying hysterically and an adult male in a curled-up position on the ground groaning loudly in pain. Officer Sandoval identified himself as an off-duty Avon police officer. The third uninjured male party informed Officer Sandoval that the ATV they were riding had flipped on top of both Mr. Chavira and Leonardo, his young son. Leonardo informed Officer Sandoval that his shoulder and hand hurt. Officer Sandoval made a splint from Leonardo’s shirt, applied it to Leonardo’s injured arm, and helped Leonardo control his breathing. Officer Sandoval then evaluated Mr. Chavira and discovered that he couldn’t move and complained of pain from his neck to his hand. Officer Sandoval observed that Mr. Chavira’s shoulder blade appeared extended outward and appeared to be out of place, a severe injury. Again, Officer Sandoval made a splint for Mr. Chavira from his own shirt and applied it. Because of the remote location, Officer Sandoval and the party were unable to obtain a cellular phone signal. Officer Sandoval helped the three male parties onto their ATV and followed them on his ATV to a location that a signal could be obtained. Officer Sandoval remained with and monitored the three males until paramedics arrived. Both Mr. Chavira and Leonardo were transported to the emergency room and made a full recovery. Officer Sandoval reflected great credit upon himself and the Avon Police Department that day. ➢ For actions resulting in the saving and prolonging of a human life on October 15, 2022. At about 1550 hours, Avon Officers were dispatched to a medical assist of a potential overdose at the Old Town Hall Parking Lot, 1 Lake St. The reporting party reported to dispatch that the victim was turning blue with agonal breathing. The reporting party and the victim’s girlfriend were instructed by dispatchers to begin CPR. Master Sergeant Jonathan Lovins was the first to arrive on scene, he was quick to take over chest compressions. Eagle River Fire Engine 7 company were next to arrive on scene. Lieutenant Andrew Pohlman, Lieutenant Wade Michels (was engineer at that time) and Firefighter Miles Morris Page 2 of 3 continued to administer chest compressions and other lifesaving care. Field Training Officer Andres Sandoval immediately followed administering a dose of Narcan to the victim. Engine 7 personnel assisted with chest compressions and suction due to the victim vomiting. MSgt Lovins provided Officer Sandoval with a second Narcan, to which Officer Sandoval administered. After a few minutes of great teamwork on behalf of Engine 7 personnel and Avon Police Officers, the victim began to show signs of life. While Master Sergeant Lovins began an investigation, Officer Sandoval assisted with applying the AED, then providing rescue breaths by means of a bag-valve-mask-ventilation. The victim regained consciousness and was transported to Vail Health for further medical evaluation and was discharged several hours later. Master Sergeant Lovins, Field Training Officer Sandoval, Lieutenant Andrew Pohlman, Lieutenant Wade Michels and Firefighter Miles Morris reflected great credit upon themselves, Eagle River Fire, and the Avon Police Department that day. ➢ For actions resulting in the saving and prolonging of a human life on March 2, 2023. At about 0806 hours, Avon Police Officers were dispatched to a Disturbance Call at 310 W. Beaver Creek Blvd. The reporting party advised her boyfriend was suicidal and had threatened to murder her. Seconds later the reporting party stated her boyfriend slit his throat. Upon arriving on scene, Office r in Training (OIT) Burgess and Field Training Officer (FTO) Gaspard were directed to the downstairs unit, they found a man on the ground with severe arterial bleeding from his left wrist. Officer Gaspard quickly located towels and instructed the man to apply immediate pressure to his wound. FTO Gaspard asked OIT Burgess to place a tourniquet to the man’s arm. OIT Burgess applied the tourniquet high and tight to the upper left arm of the man. The man continually made statements such as “I’m about to bleed out”, “I’m about to die”, “I’m probably gonna die”, and “This was a bad decision.” OIT Burgess and FTO Gaspard calmly spoke to the man, keeping him calm, until paramedics could arrive on scene. Once paramedics arrived, they discovered the bleeding had not fully subsided. Although the tourniquet was properly applied, the man was wearing a thick clothing limiting the tourniquet from fulling stopping the distal pulse. OIT Burgess applied a second tourniquet to the man’s arm, completely cutting off the blood supply to the artery. Medical care was turned over to the paramedics and firefighters. The man was transported to Vail Health for further treatment where he made a full recovery. Officer Gaspard and Officer Burgess reflected great credit upon themselves and the Avon Police Department that day. Certificate of Appreciation – An award presented to a citizen or employee that should be recognized for their service. ➢ Presented to Karyne Spadi, Town of Avon Human Resources and Risk Management Manager, and her staff members Kate Franklin and Jolie Hickey, H.R. and Risk Management Generalists, for their outstanding performance, attention to detail and commitment to the Avon Police Department. You are commended for your collective service and professionalism by ensuring the needs of the department’s human resources needs were continuously provided for. You have been the point person for recruitment for open positions through postings, reviewing resumes, interviews, conditional employment offers and drug testing. You are recognized for your continued efforts in assisting with the department’s hiring process by sitting on police candidate interview boards and executive boards with the Chief of Police and Deputy Chief of Police. Your guidance and direction in all things related to employment law, workman’s comp, and employee benefits has been invaluable. You are all a true credit to the Town of Avon and the Avon PD team. On behalf of the men and women of the Avon Police Department, THANK YOU! Page 3 of 3 Certificate of Appreciation – An award presented to a citizen or employee that should be recognized for their service. ➢ Presented to Scott Wright, Finance Director, Town of Avon Finance Department, for his outstanding performance, attention to detail and commitment to the Avon Police Department. You are commended for your service and professionalism by ensuring the department’s complex financial needs were continuously provided for. For nearly thirty years, you have supported the Avon Police Departments complex financial needs and reporting requirements. You are recognized for your continued efforts in assisting with the department’s capital and vehicle needs and requirements. Your guidance and direction in all things related to finance, salaries, compensation, capital replacement, retirement plans and employee benefits has been invaluable and always with a great sense of humor! You are all a true credit to the Town of Avon and the Avon PD team. On behalf of the men and women of the Avon Police Department, we will miss you, enjoy your retirement and THANK YOU! Certificate of Appreciation – An award presented to a citizen or employee that should be recognized for their service. ➢ Presented to Joye Gelo, Payroll Administrator, Town of Avon Finance Department, for her outstanding performance, attention to detail and commitment to the Avon Police Department. You are commended for your service and professionalism in ensuring the department’s payroll has always been consistently executed. For nearly thirty years, you have supported the Avon Police Department’s complex payroll needs and grant reporting requirements. Your guidance and direction in all things related to the many labor codes used by the police department in tour many operational roles 24/7, and ensuring FLMA coding among the many others has been invaluable. Thank you for ensuring we were paid appropriately and on time for many years. You are all a true credit to the Town of Avon and the Avon PD team. On behalf of the men and women of the Avon Police Department, we will miss you, enjoy your retirement and THANK YOU! Thank you, Chief Greg Daly ### Avon PoliceDepartment AnnualReport 2022 June 13, 2023 Table of Contents Message from the Chief............................3 Department Overview...............................5 2022 By the Numbers................................6 Comparator numbers..............................10 Highlights...................................................11 Community Initiatives & Partnerships..12 Staffing Changes.......................................13 Message From the Chief I am proud to serve with the women and men of the Avon Police Department. Every day, they go out to protect and serve, to achieve our mission of "serving to better our community" and to live up to our motto of “Count on Us!”. Deputy Chief Cosper and I constantly endeavor to ensure that our officers and staff come to work happy, are safe at work and go home happy. We could not get our mission completed without the incredible support from the Avon Town Council, Town Manager Eric Heil, and our fellow Town of Avon departments. We see ourselves as part of Team Avon, working collectively to achieve incredible goals, serving the Avon Community. We are proud of our outstanding partnerships with our Law Enforcement, Fire and EMS brothers and sisters. We are proud to work collaboratively with many community- based organizations. We like to be leaders in our law enforcement profession, and we are proud to be able to host an annual county wide active shooter response training, our annual Latino and Citizen Police academies, our National Night Out Events, Shop with a Cop, School Resource Officer in Avon Elementary School, Kids Cops and Hoops, to name but a few. We constantly work to keep crime rates at historic lows, but we cannot be everywhere all of the time. We rely on our community to report criminal activity and we believe we have the community’s trust. Thank you for your continued unwavering support of Avon’s Finest. Chief Greg Daly APD Overview Chief of Police Greg Daly Deputy Chief Coby Cosper As of December 31, 2022, the Avon Police Department employed and authorized strength of 21 sworn officers, two part time seasonal Community Response Officers, and three civilian staff officers. The number of authorized sworn positions are separated by rank on the left. In 2022, there were 3.5 sworn personnel for every 1,000 residents in Avon. 13 Officers & 1 Detective 5 Sergeants 2 Temporary Seasonal Community Response Officers 3 Administrative Services Officers 2022 By the Numbers Total Crimes reported 4.96% Decrease from 2021 Assaults 11.86% Decrease from 2021 Motor Vehicle Thefts 11.86% Decrease from 2021 Sex Offenses 10% Decrease from 2021 Burglary 333% Increase from 2021 DUI 9.89% Increase from 2021 Larceny 1.4% Increase from 2021 Domestic Violence 35.13% Decrease from 2021 Traffic Accidents 15.74% Increase from 2021 Animal Control Summonses 33.33% Increase from 2021 74% 2022 By the Numbers Total Calls for Service 18,266 Traffic Stops 1,523 Traffic Accidents 147 Calls Officers Dispatched To 4,610 Self-Initiated Calls 13,489 Incidents of Use of Force 19 Total Arrests 258 23.67% of our traffic stops were with persons of Hispanic ethnicity; 17.05% Hispanic males and 6.62% Hispanic females. This compares with 39% of our 2020 census population who report Hispanic heritage and 49% in 2010. 47.99% of our traffic stops were with Caucasian males 22.88% of our traffic stops were with Caucasian females 2.59% were with African males .79% was with African American females Includes traffic stops to include educational warnings and tickets (excluding DUI): Avon PD Activity Statistics 2022 Traffic Enforcement Ethnic Breakdown 2022 Calls For Service by Nature Code Unknown 911 134 Disturbance 120 JV Problem 31 REDDI 86 Alarm 236 Intoxicated Party 50 Abduction/Kidnapping 1 Relay 170 Animal Complaint 189 Domestic Disturbance 87 Liquor Violation 1 Restraining Order Violation 27 Armed Party with Weapon 2 Drugs 10 School Lock Down 2 Road Debris 55 Arrest Generic 7 Drug Task Force 1 Lost Property 119 Reports 200 6 Assault 42 Evidence Processing 83 Medical 110 Runaway 1 Assist 1194 Fight 26 Mental Health Hold 4 Security Checks 65 Attempt to Locate 29 Fingerprints 1 Missing Overdue Party 27 Registered Sex Offenders 10 Bar Check 365 Fire 60 Motor Vehicle Accident 379 Shooting/Shots Fired 8 Bear Call 74 Follow Up 1568 Negative Contact w/Officer 10 Suicidal Party 46 Bike Patrol 106 Foot Patrol 498 Noise Complaint 125 Suspicious Occurance 390 Briefing 29 Found 6 Open Door/Windows 16 Traffic Stop 1523 Burglary 9 Found Property 115 Ordinance Violation 16 Theft 150 Business Check 1095 Fraud 53 Parking Problem 453 Towed Vehicle 33 Civil Standby/Matters 185 Person w/Gun 3 Patrol/Radar 326 Training 42 Contact 183 CBI Firearms Check 1 Prisoner Processing 14 Traffic Complaint 162 Community Oriented Policing 415 Harassment 95 Prowler 2 Travelers Aid 9 Damage 56 ID Dispute 7 Clear Person or Vehicle 14 Traffic Control 35 Directed Patrol 4095 Interview 17 Recovered Stolen Property/Vehicle 1 Trespassing 69 Unknown Nature 43 Criminal Injury to Property 29 Abandoned Vehicle 28 Vin Check 46 Comparator agencies Avon / Average Benchmark City* per 1,ooo citzens Traffic Citations 37.5 / 23.9 Motor Vehicle Theft 1.2 / 2.4 Calls for Service 768.3 / 121.2 DUI 16.5 / 2.6 Latest Overland Park Benchmark Cities Survey 2021* Theft 11.9 / 11.9 Worked with Community Development, Engineering and Facilities to implement a Wildland Fire Evacuation Emergency Siren system with five sirens. Another successful Wildland fire Evacuation exercise Created a Safe Community Meetup spot at the PD Participated in multiple Special Olympic fundraiser events to include Tip a Cop, Torch Run and Polar Plunge Completed Autism/ Spectrum Awareness training provided by Ascendigo Assist with weekly unloading of Vail Valley Salvation Army food delivery trucks Permitted officers to wear beards/goatees Extreme risk protection order (Red flag) Avon PD granted first one for law enforcement in Eagle County and recently renewed it Proudly draped LGBTQIA+ flag on PD building as ally and supporter to our community Three graduations from Denver University Daniels School Public Leadership program Shop with a Cop-, 29 children with over $9,000 raised. We continue as a nationally accredited agency through the Commission on Accreditation for Law Enforcement Agencies (CALEA) Another successful Law Enforcement Ski Program at Beaver Creek Mental Health Wellness, constantly working on our own wellness via Peer Support and mandatory annual wellness check ins for all officers with a licensed clinician. Crisis Intervention Training (CIT), all of our officers complete the 40-hour training either during the field training program or shortly thereafter. We have nearly 100% of officers certified in CIT. Avon PD has become a Georgetown University Active Bystandership for Law Enforcement (ABLE) agency. Three officers completed the instructor training and 2/3 of our officers have completed officer training School Resource Officer Gaspard and Officer Villegas participated in the Police Memorial Week in Washington D.C Chief Daly serves on both the Colorado Peace Officers and Standards Training Board and the Colorado Task Force on Drunk & Impaired Driving Deputy Chief Cosper serves on the Victims Assistance and Law Enforcement Board (VALE) Avon PD participated in the national Faith and Blue Weekend Training. Avon PD officers complete over 100 hours of in-service training per year to ensure officer safety, community safety, adherence to the rule of law, adherence to national accreditation and reduced risk mitigation. Use of force/ response to resistance. There were 19 incidents in 2022 where Avon Officers had to use force. Force includes directing a weapon in a high-risk situation. In 11 incidents a police firearm was pointed at a suspect, taser was pointed 4 times and a taser was deployed 1 time. There were no serious injuries to officers or suspects in all of these encounters. Professional standards inquiry (PSI)/ internal affairs. There were five PSIs, four were vehicle accident or vehicle damage related and the fifth was a violation of departmental policy. Four of the PSIs were sustained and one was unfounded. Mental health response: In 2022, Avon police officers responded to 77 Welfare Checks, 4 Mental Health Holds,46 Suicidal calls, 55 Calls for Service directly related to Hope Center Highlights Community Initiatives & Partnerships Law Enforcement Immigrant Alliance, National Drug Takeback Program, Annual Food Drive, Vail Valley Salvation Army Weekly Food Unloading, Law Enforcement Ski Program at Beaver Creek, Speak Up Reach Out Suicide Prevention, Vail Health Behavioral Health, Victims Assistance and Law Enforcement Board, Treetop Forensic Interview and Child Advocacy Center, Facebook, Department Chaplains, National Night Out, School Resource Officer Program, Latino Academy, Citizen's Academy, Riverbridge Forensic Interview and Child Advocacy Center, Your Hope Center, Avon Liquor Licensee Meetings, Colorado Peace Officers and Standards Training Board, Shop with a Cop, Colorado Special Olympics, My future Pathways, Vail Valley Latino Show, Corazon de Mujer/Hearts Reign Organization, Kids, Cops and Hoops, Faith and Blue Weekend, Coffee with a Cop, Pride in the Park, Daily Drug Takeback Safe, Sexual Assault Awareness Month, Safe Meetup Spot Michael Davidson Resigned 10/13/21 1 Year, 7 Months ? to Replace Matt Jamison No Longer in Office Remote 08/22 Retired 12/31/22 10 Months ? to Replace JUNE 2021 Eric Benson Resigned 06/05/21 1 Year to Replace Derek Lopez Resigned 06/05/21 1 Year, 3 Month to Replace Mike Lundblade Last Day of Work PTO 09/07/21 Retirement 10/08/21 8 Months to Replace Toby Baldwin Resigned 10/08/21 1 Year, 5 Months to Replace 601 Josh Hernandez CRO 06/28/21 Police Officer Recruit 08/09/21 Academy Graduation 12/21 Completes FTO 06/16/22 601 620 614 611 616 601 Cirilo Zarate Police Officer Recruit 08/10/21 Academy Graduation 12/21 Completes FTO 08/29/22 620AUG 2022 Theresa Reno Lateral Hire 3/22 Completes FTO 05/18/22614MAY 611 Mike Emery Police Officer Recruit 05/03/22 Academy Graduation 08/22 Completes FTO 03/05/23 611MARCH 2023 John DeGhetto Police Officer Recruit 05/03/22 Academy Graduation 08/22 Completes FTO TBD 616MAY 2023 JUNE 2021 SEPT 2021 OCT 2021 OCT 2021 2022 JUNE 2022 604 AUG 2022 604 Rio Burgess Police Officer Recruit 08/15/22 Academy Graduation 12/22 Completes FTO TBD 604JUNE 2023 Staffing Changes 2022 Avon's Angels (970) 748-4040 gdaly@avon.org TO: Honorable Mayor Phillips and Avon Town Council Members FROM: Chief Greg Daly RE: The Avon Police Department’s Accountability Report regarding the request to use Facial Recognition Services in accordance with Colorado Revised Statutes (C.R.S.) 24-18-302 DATE: June 13, 2023 SUMMARY: Facial Identification/facial recognition has evolved into a cutting-edge crime solving/ crime fighting investigative tool. Generally, there are two uses of facial recognition- “live view” at some airports for example, where faces from live footage security cameras are compared against an active database, or the more widely used, post incident/event facial identification comparison of “still” photographs against a photo database of known offenders (typically from arrest booking photographs). This accountability report centers around “still photograph” facial identification and not live surveillance. The comparison of a still photographic image can provide a selection of possible investigative lead photographs that an investigator can compare with and analyze against. The investigator then builds his/her case with other independent evidence. Importantly, while facial recognition service ("FRS") results are valuable, the results of an FRS comparison cannot serve as the sole basis to establish probable cause in a criminal investigation. In June 2022, the Colorado State legislature passed Senate Bill 22-113 (SB113), which enacted C.R.S. §§ 24-18-301 through 24-18-309 imposing new requirements on local government agencies, including law enforcement, related to the use of facial recognition services . Investigative uses of FRS by law enforcement are subject to the statute, C.R.S. § 24-18-301, et seq. SB113 requires that a municipal police department that wishes to use or to continue to use an FRS for investigative purposes must file with its city council a “Notice of Intent” and thereafter an “Accountability Report” related to its proposed use of FRS. The Avon Police Department provided an initial notice of intent, held three community public comment/listening sessions, provided a public comment link on our website and this is the final accountability report from the public process. This final report has been posted to the Town of Avon website and to the Avon Police Department website. We are also required to provide a biannual accountability report to the Avon Town Council. BACKGROUND: The Avon Police Department has the potential availability of three facial recognition services (FRS). ➢ The Department of Revenue, Motor Vehicle Investigations Unit, Law Enforcement Communications Center utilizing its database of driver’s license photographs. ➢ The Colorado Bureau of Investigation, utilizing post arrest booking “mugshot” photographs from Sheriff’s Offices primarily in the Denver metro area and from the Federal Bureau of Investigation. ➢ The Colorado Information Sharing Consortium (CISC) Regional Data Warehouse utilizing the Lexis Nexis/Lumen information exchange IT platform. CISC is a consortium of eighty-seven (87) Colorado law enforcement agencies. The mission statement of CISC is “Making data-driven crime solutions available to all Colorado law enforcement agencies .” The database comprises of post Page 2 of 26 arrest booking “mugshot” photographs from all the Colorado member agencies that submit their booking photographs to the consortium (https://cisc.colorado.gov/). Facial recognition technology must only be used for legitimate law enforcement purposes. Authorized uses of facial recognition technology are limited to the following: 1. To identify an individual when there is a basis to believe that such individual has committed, is committing, or is about to commit a crime; 2. To identify an individual when there is a basis to believe that such individual is a missing person, crime victim, or witness to criminal activity; 3. To identify a deceased person. 4. To identify a person who is incapacitated or otherwise unable to identify themselves; 5. To identify an individual who is under arrest and does not possess valid identification, is not forthcoming with valid identification, or who appears to be using someone else’s identification, or a false identification; or 6. To mitigate an imminent threat to health or public safety (e.g., to thwart an active terrorism scheme or plot). Senate Bill 22-113 was passed with an intent to regulate the use of and ensure adherence to many privacy concerns expressed by the legislature at that time. A law enforcement agency shall not apply a facial recognition service to any individual based on the individual's religious, political, social views or activities; participation in a particular noncriminal organization or lawful event; or actual or perceived race, ethnicity , citizenship, place of origin, immigration status, age, disability, gender, gender expression, gender identity, sexual orientation, or other characteristic protected by law. After filing the notice of intent with the Avon Town Council on March 14th and prior to finalizing this accountability report, the Avon Police Department complied with the legislation by: (a) allowing for a public review and comment period by opening a comment section on our website; (b) held three public meetings to obtain feedback from our community; and (c) considered the issues raised by the public through the public meetings. As a result, our presentation of this accountability report tonight and based on the Town Councils final decision, if approved, we will allow for a ninety-day period before the Avon Police Department utilizes a facial recognition service. As required, we have posted the final adopted accountability report on the agency's public website and submitted it to the agency's reporting authority (Avon Town Council). The reporting authority shall post the most recent version of each submitted accountability report on its public website. The report has been posted to the Town of Avon website. An agency shall update its final accountability report and submit the updated accountability report to the agency's reporting authority at least every two years. Another major point for consideration from this legislation is that any suspect candidates who are identified by a facial recognition solution are viewed “only” as an investigative lead and should not be viewed as the sole basis for probable cause in a criminal investigation. The results are to be used by officers or detectives merely as possible leads in identifying a suspect in a criminal investigation. The officers and detectives will ensure that their decisions are subject to meaningful human review before proceeding with Page 3 of 26 the investigation in accordance with C.R.S. § 24-18-303. Use of FRS will follow state law, and the limitations of C.R.S. § 24-18-307 will be respected. The act prohibits an agency from using an FRS to engage in ongoing surveillance (like at an airport); conduct real-time or near real-time identification; or start persistent tracking unless the law enforcement agency (LEA) obtains a warrant authorizing such use, such use is necessary to develop leads in an investigation, the LEA has established probable cause for such use, or the LEA obtains a court order authorizing the use of the service for the sole purpose of locating or identifying a missing person or identifying a deceased person. Avon PD does not have any internal resources that would allow for real- time surveillance using FRS, but if we were to request that resource from an outside agency, we would obtain a search warrant per the statue. Pursuant to C.R.S. § 24-18-306, an agency must maintain records that are sufficient to facilitate public reporting and auditing of compliance with the agency's facial recognition policies. Accordingly, Avon PD will create an internal database to track when officers submit a photograph to any outside agency for facial recognition, tracking the requesting officers name, the case or event number for the inquiry , the type of investigation, the outside FRS agency that we are requesting to conduct a facial recognition search and if the facial recognition comparison led to any outcomes. This information will be incorporated into a statistical biannual accountability report for the Town Council. PUBLIC COMMENT AND PUBLIC LISTENING SESSIONS: Per our Communications Manager Liz Wood, we advertised the public listening sessions via Vail Daily Digital Advertising. We ran three print advertisements in English and three in Spanish - one for each meeting. We spent $1,000 on digital ads on VailDaily.com in two languages that clicked through to the webpage with more information and the public comment form. We received 51,895 impressions (views) of the ads. Twenty-four people clicked on the ads to go to the PD webpage about facial recognition. We posted information regarding the public comment section and public meetings on both the Town of Avon and Avon PD’s Facebook. We had two public comments through the public comment section on the PD website. “From Avon Resident. Received 3/24 at 1:54 PM While I am not in favor of police, law enforcement or anyone utilizing live streaming facial recognition technology for any kind of surveillance. I am in favor of the use of this facial recognition technology for the requested specific uses. From Avon Resident. Received 4/4 at 3:31 PM It starts with facial recognition, then it will be digital ids, then social credit scores. As if there is so much crime in Avon that they need facial recognition.” We had the following comments on the PD Facebook post. The individuals did not comment as to whether they were Avon residents; “Person # 1 Because of such an increase in crime. My personal opinion says, you're warranted to use such a tool. Why not use an appropriate tool to specifically monitor for crime of any kind. Minor to major. Anyone who wouldn't agree just might have Page 4 of 26 something to hide. Because if you're worried about being identified for something you haven't done in a place you weren't. You need an evaluation. Good luck. Person #2 to Person # 1 you may be willing to give up your freedom to privacy, but in my opinion, if this was really about crime, we need a justice system that will actually punishes criminals. Using AI and databases to fight crime is really just a myth. To prove it, we have finger printing systems, probation and parole systems, ankle monitors and GPS tracking software. Plus, some of the best intelligence agencies and crime fighting techniques but Crime is still prevailing. Why? Founding fathers have stated those who are willing to sacrifice freedoms for security deserve neither. The nazi proved it. Person # 1 to Person # 2 I understand where you're coming from, and I agree. "If" identify was the only incident. Everything is connected and if you're soft on crime. This is absolutely unnecessary. However. And I don't know. Perhaps law enforcement should be allowed to be tough on crime. Hands being tied? No doubt, in areas. I don't have their solution. I can see how a tool like this can be useful for what they are talking about.” Example of post to Town of Avon Facebook Page 5 of 26 We posted a poster at the Avon Library and provided posters to Aspens Property Management for distribution. Additionally, the last public comment meeting was conducted during the April 25th council meeting and the agenda was advertised via the usual channels. On March 24, Detective A. Herendez completed a Facebook live Spanish interview with the Vail Valley Latino show, answered questions and advertised the three public comment/ listening meetings ; https://www.youtube.com/watch?v=JKRmdeiD_4I Minutes 5:00 – 12:03 On April 6, the Vail Daily published a news article about Facial Recognition and our public process; https://www.vaildaily.com/news/avon-police-department-campaigns-for-use-of-facial-recognition-services/ We had three public comments session. 1. March 29th at 7:00pm at the Aspens Mobile Home Park, Community Center, 901 West Beaver Creek Boulevard, Avon, CO 81620- We had 26 attendees. 2. Saturday April 15th at 11:00am at Avon Public Library, 200 Mikaela Way, Avon, CO 81620 - No attendees. 3. April 25th at 5:00pm at the Avon Town Council meeting at 100 Mikaela Way, Avon, Co. 81620- Two community members made comments and asked questions and Town Council members had a number of questions and requested some clarifications. This is a summary of the comments from the Aspens meeting and the Town Council Public comment session. “Community Input Meeting Aspens Mobile Home Park March 29, 2023 Public Questions/Comments: APD will be using the technology to map a person’s face, correct? Yes Will we be placing the cameras in certain places to get the photos? No If we (APD) get a photo, we send it in, will we be doing that for every person? No, it can be used on crimes where the suspect is unknown. We can try to identify if we have a photo. A community member asked if it had worked in Vail during the string of b ike/ebike thefts as they recovered many bikes. The Chief stated Vail hasn’t gone through this process yet, it was most likely other shared photos and some personal knowledge helped capture the thieves. Is it going to be more exact to identify person(s) who committed the crime? Technology and photo clarity are improving so hopefully we can get more positive results in the future. Is it enough probable cause for an arrest if your face matches? No, APD can use the information as a lead only in their investigation but not probable cause for an arrest. We would still have to build a case; this technology is just one tool in an investigation. Page 6 of 26 Where are the cameras? Avon is not placing cameras for this purpose. Businesses or personal cameras will potentially capture photos and can be shared with the department. Comment: A great tool to have because it will help eliminate doubt about a suspect and also a good thing if it brings justice for victims of crime. Comment: Valuable given everything going on with schools and shootings. Is it a requirement for stores/public places to have cameras? No. Are there programs that will provide cameras? Not specifically. Can HOA’s and such forbid people to put up cameras (such a s Ring) outside their house? If you have a camera installed at your residence you can’t pick up privacy matters in someone else’s house. Some places may not allow drilling for installation but there are battery operated/wireless cameras available. One resident said he supports it. He also feels like having access and spreading awareness of it may deter people from committing crimes. If Crime occurs in Avon, can we send to other agencies before we fully investigate in hopes to catch criminals? We already do this (depending on the crime) in hopes of finding people more quickly (surrounding Law Enforcement agencies, Facebook etc.) It was asked if it can be shared to the community in general (we cannot currently use ECalert/Everbridge for this purpose) and if people can share this information and the answer was yes. One resident stated they receive amber alerts through the phone, is this different technology or similar? Different. Do we think technology will help speed up identifying a suspect? It may be one of many tools that will help. A resident was wondering if we can utilize it anywhere in Eagle County or just Avon? The Cou nty (and other towns) will have to go through the same public input process as Avon is in order to use it. APPLAUSE from the crowd because Avon likes to be a leader! As a community what can we do to help get this approved? Provide comments on Avon PD’s Facebook page and on the website, whether for or against. Comments can be in English or Spanish.” We received a follow up email from Augustina Del Hoyo, Resident Manager for the Aspens; “Thank you for last night's conference. Thank you for your concern for the safety and well -being of our community, families and children. The Aspens community will be supporting the Facial Recognition Project. Best regards Page 7 of 26 Agustina Del Hoyo, Resident Manager, The Aspens Mobile Home Village ” These were the two public comments/questions at the April 25th public comment session at that Avon Town Council Meeting. A resident of Wildridge raised questions related to how often Avon PD expects to use the technology and under what kind of circumstances, is it 100 times, are they for murders or is it five times and they are for jaywalk offenses. Chief Daly responded that he could not see it happening very often because it will be down to the quality/resolution of the photographs submitted. He discussed an internal debate over whether facial recognition should be used only for serious crimes or felonies, and he shared a little story that he mentioned at the first meeting (at the Aspens Community Center) regarding an example of an event at Walmart, where a person had their handbag stolen from Walmart, should the Police Department be limited using this technology where that person had their last $300 in their life in that handbag (stolen), and whether it was as important to pursue justice for that person versus a more serious crime. Chief Daly shared that a lady came up to him after the meeting to say that it was her and that she had her last rent money in her bag. The Avon Police Department was able to track that individual down and repatriate the money back to her. Chief Daly confirmed that the PD would not be using facial recognition for jay walking, but yes on thefts, assaults, and more serious crimes. Chief Daly didn’t want to put a limit on the types of crimes that the PD utilizes facial identification technology, because to one person $300 may not be a big deal but that the aforementioned lady came up and said that it was her last rent money. That was why Chief Daly did not want to put a restriction on it. However, we would not waste their time (the facial recognition services) with simple cases, and Chief said that we already do community facial identification/recognition by our Facebook posts with nearly a 70% success rate when asking the community if they recognize a person of interest. Another resident of Avon raised a couple of questions; what constitutes a basis that such individual has committed, is committing or will commit a crime. What assurances are there that Avon PD will abide by the six authorized uses and what are the repercussions if an officer were to violate the terms of service? Chief Daly shared that in terms of has, is or will commit a crime comes out of the statute book. Chief Daly said that most incidents would be post incident where the PD would try to use facial recognition. In terms of will commit, Chief Daly gave an example of individual making threatening remarks on a Facebook post or other social media where we would want to identify that individual to see if a future violent crime may be committed against a person or an institution. Chief Daly confirmed that it is in the statute book that we can only use it for the aforementioned reasons, and we would be subjec t to violation of a crime if we were not to. The Police Department is required to come back every two years with an accountability report and the plan is to keep a log for every instance of use. Chief Daly shared that misuse of this technology by an officer could lead to disciplinary repercussions for an officer up to including termination and or criminal charges. Additional councilmember questions included whether we could access photographs from outside of Colorado. Chief Daly confirmed that through the Colorado Bureau of Investigation, they can pull from the Federal Bureau of Investigations booking mugshot photograph database. The question of costs came up. Chief Daly confirmed that there was no specific additional cost for the facial recognition services as we were already paying an annual subscription service fee for Lumen services to include the database Page 8 of 26 exchange between law enforcement agencies throughout Colorado and facial recognition. However, there would be a new training cost of $150 per officer for a four-hour training course for nineteen officers and $550 each for two detectives for a 24-hour training course for a total new training cost of $3,950. A subsequent council question revolved around the crime rates in Avon, types of crimes, misdemeanors/felonies, and the frequency of those crimes in Avon. The following table gives a quick summary of crimes from 2017 to 2022. Avon Police Department 2006-2022 Activity Statistics 2017 2018 2019 2020 2021 2022 Total Crimes Reported 798 827 668 530 564 536 Group A Crimes 313 359 201 285 287 264 Group B Crimes 487 468 426 245 277 272 Clearance Rate .43 .51 .48 .46 .44 .37 Total Reports 901 855 703 662 664 693 Calls for Service 22,890 20,632 20,213 26,741 20,253 18,236 Dispatched calls 4,712 4,996 4,850 4,274 4,728 4,610 Traffic Accidents 159 154 155 139 127 147 Traffic Accidents Alcohol/Drug Impaired 7 7 12 5 13 11 Total Arrests 392 392 345 273 321 258 Adult Arrests 365 354 318 251 309 248 Juvenile Arrests 27 38 27 22 12 10 Felony Arrests 53 71 45 31 45 38 Sexual Offenses 11 14 7 10 10 9 Robbery 2 0 0 3 0 1 Burglary 7 13 1 3 3 13 Larceny 109 113 83 73 71 72 Motor Vehicle Theft 7 5 10 10 11 7 Assault 43 67 47 59 59 52 Arson 0 0 0 1 0 0 Forgery/Counterfeiting 3 5 4 2 2 5 Fraud 27 20 17 17 37 31 Vandalism 63 65 36 70 55 46 Weapon Offense 4 6 4 4 3 3 Narcotics 34 41 26 21 17 11 DUI 133 108 97 69 91 100 Liquor Laws 14 15 24 13 12 10 Disorderly Conduct 20 27 21 19 26 24 Domestic Violence 33 43 41 31 37 24 Traffic Stops 2281 1985 1949 1770 1680 1523 Total Traffic Warnings 1620 1561 1508 1266 1192 1110 Written Traffic Warnings 1463 1378 1423 1299 1212 1146 Traffic Summons 508 309 302 308 307 228 Chief Daly subsequently responded on 05/07/2023 to an email question from an Avon resident regarding his estimate of how many times he foresees this technology being used. The question was ““In how many cases over the year would you have used facial recognition had it been available to you, and what kind of cases were those?” “Mr.???, to answer your previous question, these are examples of the instances that my detective could remember that we may have submitted photos for facial identification comparison. If this process is Page 9 of 26 approved by the council, going forward we will keep a log of every photo that we submit for facial identification comparison. 2022: 4 Total Cases o Fraud/Identity Theft/Theft from the Westin o Theft from Rec Center o Theft from Walmart o Theft from Walmart • 2023: 4 Total Cases (From the start of the year till now) o Theft from Avon Truck and Auto o Hit and Run at Avon Center o Ski Theft from the Westin o 2nd Degree Assault & Disorderly Respectfully,” PRIVACY CONCERNS: As discussed, Senate Bill 22-113 was specifically created to ensure that privacy concerns are met by statewide law enforcement agencies. The Avon Police Department will adhere to the criteria set out by this bill. This system is designed as a crime prevention/investigative tool, to aid officers/detectives in solving crimes against Avon citizens resident and guests and to bring justice for victims of crimes. FACIAL RECOGNITION SERVICES: Attachments A-C contain the responses to questions posed in C.R.S. §§ 24-18-302 from the three facial recognition services that are available to the Avon Police Department. TRAINING: Avon PD will provide periodic training to its officers educating them on the statutory requirements regarding the use of facial recognition services, it’s capabilities and limitations, image comparison principles, the procedures for using FRS, ensuring meaningful human review and the method of logging the FRS search on the department official FRS record keeping database. We have explored training through Ideal Innovations Incorporated for facial identification training courses (recommended by General Counsel of one of the FRS) The basic four-hour introductory course costs $150 per officer and the more advanced 24-hour course will provide the participant with a system-agnostic foundation for Facial Examination. Participants will have the opportunity to conduct comparisons; learn key definitions, the stability of facial features, and contributions to facial uniqueness. Challenges within the discipline and agencies/organizations that are influencing the discipline are discussed. The 24-hour training costs $550 per officer. We intend that all officers will complete the four-hour course and the Department's two detectives will complete the 24-hour courses. Officers who use the FRS will consult with a detective on the images before they use the information as investigative leads. FINANCIAL CONSIDERATIONS: There is no cost to use FRS though Colorado Department of Motor Vehicles or the Colorado Bureau of Investigation. The Avon Police Department is a member of CISC, and we pay a subscription of $2,163 per year to use the Lexis/Nexus Lumen database (cost is already included in our budget). This covers our twenty-one commissioned officers. The LexisNexis/Lumen investigative tool covers many investigative database resources and within these resources is their facial recognition Page 10 of 26 service. If approved by Avon Town Council, nineteen officers will complete the four-hour course and two detectives will complete the 24-hour course, 19 x $150= $2,850 and 2 x $550= $1,100 for a total of $3,950 (to be taken out of professional development/training budget). STAFF RECOMMENDATION: The majority of public comment has been supportive in the Avon Police Departments request to use facial recognition/identification resources. In the 90-day waiting period before utilizing Facial Recognition resources, Avon PD officers will complete a 4 -hour familiarization training and our two detectives will complete a 24-hour training. We recommend that the Avon Town Council authorize the Avon Police Department’s use of the facial recognition /identification services as a crime solving investigation tool. Avon PD will create a database for FRS use to facilitate public reporting. Finally, the Avon Police Department will complete a biannual Facial Recognition Service accountability report to the Avon Town Council. PROPOSED MOTION: “I move to authorize the Avon Police Department’s use of facial recognition/facial identification services, as a crime solving tool, with the understanding that the Avon Police Department will ensure proper legal use, adherence to policy and provide proper training in its use. Additionally, the Avon Police Department will produce, as legislatively required, a biannual accountability report on facial recognition/identification use, to its reporting authority, the Avon Town Council.” Thank you, Chief Greg Daly # # # ATTACHMENTS: Attachment A Lumen Rank/ One Computing Attachment B Colorado Bureau of Investigation Attachment C Department of Revenue, Motor Vehicle Investigations Unit, Law Enforcement Communications Center Page 11 of 26 Required data from the three facial recognition services that Avon PD would like to utilize: Attachment A Lumen/ Rank One Computing After filing the notice of intent described in subsection (1) of this section, and prior to developing, procuring, using, or continuing to use a facial recognition service, an agency shall produce an accountability report for the facial recognition service. An accountability report must include: (a) (I) The name, vendor, and version of the facial recognition service; and Rank One Computing Corporation’s ROC SDK version 2.2.1 provides the core facial recognition algorithms that are utilized in LexisNexis Risk Solutions’ Lumen product, an integrated data platform leveraged by public safety analysts, investigators, patrol officers and commanders to help solve cases faster. (II) A description of its general capabilities and limitations, including reasonably foreseeable capabilities outside the scope of the agency’s proposed use; Lumen may be used in an investigation to help identify potential suspects by comparing a single probe image of an unknown suspect to a collection of candidate facial images provided by the Colorado Information Sharing Consortium (CISC). Lumen provides multiple results, each with a given match score generated by the ROC SDK’s facial recognition algorithms. The match score is designed to indicate the likelihood of the probe image matching a given result. The core facial recognition algorithms depend primarily on the image quality of the probe image and candidate images and on the robustness of the algorithm development process. The primary factors of image quality are capture conditions, including camera sensor quality, field of focus, g lare, blur, low light, high contrast, variable lighting, height of the camera, pose of the subject and occlusions between the camera and the subject face. Algorithms are developed by processing training data through machine learning architectures and iteratively testing accuracy on data that represents real-world conditions. Accuracy of a match score may be impacted by poor image quality of the probe image and/or candidate image or to the extent that operational data is fundamentally dissimilar to training data and/or testing data selected in the research and development process. (b) (I) The type of data inputs that the facial recognition service uses; The Lumen facial recognition service accepts images as data inputs. (II) How data is generated, collected, and processed; and [LexisNexis] The candidate facial image data is collected by the CISC from its member agencies, the national NCIS Law Enforcement Information Exchange (LInX) and the FBI’s N-DEx national information sharing system Any images containing faces are processed into Lumen’s facial recognition service. The probe image is collected in the course of an investigation. (III) The type of data the facial recognition service is reasonably likely to generate; The ROC SDK generates a template of each facial image, which is a mathematical model of the unique subject, and which may be compared to templates generated from other images to produce a match score. For each facial image, the ROC SDK also generates metadata including pitch, yaw, image quality estimations and facial analytics like age, gender, geographic origin, emotion, facial hair, glasses and mask estimations. (c) A description of the purpose and proposed use of the facial recognition service, including: When provided a probe image to search against a collection of candidate images, Lumen returns multiple results, Page 12 of 26 sorted by the highest match score generated by the ROC SDK’s facial recognition algorithms, Once Lumen provides a list of results, a human investigator must review the results before making any determination of a possible match. A possible match determination may be used as an investigative lead that is treated in a similar manner as an anonymous tip. In particular, the investigative lead does not supply adequate probable cause to make an arrest without additional evidence. The intended benefit of using the Lumen facial recognition service is to generate investigative leads for further investigation with the hope of solving unsolved crimes. In comparable use by the New York City Police Department (NYPD) since 2011, the NYPD has successfully used facial recognition to identify suspects whose images have been captured by cameras at robberies, burglaries, assaults, shootings, and other crimes. In 2019 alone, the Fac ial Identification Section received 9,850 requests for comparison and identified 2,510 possible matches, including possible matches in 68 murders, 66 rapes, 277 felony assaults, 386 robberies, and 525 grand larcenies with no known instance which a person was falsely arrested on the basis of a facial recognition match. (See https://www.nyc.gov/site/nypd/about/about-nypd/equipment-tech/facial-recognition.page) (I) What decision will be used to make or support the facial recognition service; and (II) The intended benefits of the proposed use, including any data or research demonstrating those benefits; (d) A clear use and data management policy, including protocols for the following: [DEFER TO ARAPAHOE COUNTY – see NYPD and CISC models] (I) How, when, and by whom the facial recognition service will be deployed or used; to whom data will be available; the factors that will be used to determine where, when, and how the technology is deployed; and other relevant information, such as whether the technology will be operated continuously or used only under specific circumstances; (II) If the facial recognition service will be operated or used by an entity on the agency’s behalf, a description of the entity’s access and any applicable protocols; (III) Any measures taken to minimize inadvertent collection of additional data beyond the amount necessary for the specific purpose for which the facial recognition service will be used; (IV) Data integrity and retention policies applicable to the data collected using the facial recognition service, including how the agency will maintain and update records used in connection with the service, how long the agency will keep the data, and the processes by which data will be deleted; [LexisNexis] The agency determines retention and collections policies. On the FaceRec side we sync all data the agency has in Lumen into the FaceRec service; therefore, their current data retention policies apply to FaceRec as well. (V) What processes will be required prior to each use of the fa cial recognition service; (VI) Data security measures applicable to the facial recognition service, including: (A) How data collected using the facial recognition service will be securely stored and accessed; and [LexisNexis] Facial recognition data is stored securely on Lumen servers, and access is limited to authorized services within Lumen (B) If an agency intends to share access to the facial recognition service or the data from that facial recognition service with any third party that is not a law enforcement agency, the rules and procedures by which the agency will ensure that the third party complies with the agency’s use and data management policy; (VII) The agency’s training procedures, including those implemented in accordance with section 24-18-305, and how the agency will ensure that all personnel who operate the facial recognition service or access its data are knowledgeable about and able to ensure compliance with the use and data management policy before using the facial recognition service; an d (VIII) Any other policies that will govern use of the facial recognition service; Page 13 of 26 (e) The agency’s testing procedures, including its processes for periodically undertaking operational tests of the facial recognition service in accordance with section 24-18-304; In accordance with subsection (4) of Colo. Rev. Stat. Section 24 -18-304, Rank One Computing submits the ROC SDK for testing in the following series of the National Institute of Standards and Technology (NIST) Face Recognition Vendor Test (FRVT) Ongoing: 1:1 Verification (https://pages.nist.gov/frvt/html/frvt11.html), 1:N Identification (https://pages.nist.gov/frvt/html/frvt1N.html), Quality Assessment (https://pages.nist.gov/frvt/html/frvt_quality.html), Demographic Effects (https://pages.nist.gov/frvt/html/frvt_demographics.html), Paperless Travel (https://pages.nist.gov/frvt/html/frvt_paperless_travel.html) and Presentation Attack Detection (https://pages.nist.gov/frvt/html/frvt_pad.html). (f) Information concerning the facial recognition service’s rate of false matches, potential impacts on protected subpopulations, and how the agency will address error rates that are determined independently to be greater than one percent; On the NIST 1:1 leaderboard, available here: https://pages.nist.gov/frvt/html/frvt11.html, The latest version of the ROC SDK, version 2.4 is currently listed as the #10 algorithm out of 478 total entries (top 2%), placing Rank One Computing top 7 among vendors overall. The algorithms ahead of Rank One are produced by Chinese companies who are prohibited from doing business in the United States due to human rights violations (CloudWalk, SenseTime and Megvii), a Russian company that is seeking to rebrand as a Dutch subsidiary of a Luxembourg fund, which in turn is a subsidiary of Russia’s largest telecom (Intema fka VisionLabs and a subsidiary of Mobile TeleSystems PJSC) and Korean providers Samsung and Kakao. Page 14 of 26 Results also continue to be available for the earlier submitted versions ROC SDK v2.2, listed as rankone- 013 and ROC SDK v2.0, listed as rankone-012. For the ROC SDK v2.2, listed as rankone-013, the overall false match rates (FMR) range from 0.001% (1 in 100,000) to 0.0001% (1 in 1,000,000) with the equivalent false non-match rates (FNMR) shown above, ranging from 0.26% to 5.43%. In the NIST Demographic Effects series (available here: https://pages.nist.gov/frvt/html/frvt_demographics.html), the ROC SDK shows accuracy of less than 4% FMR with less than 0.2% FNMR across all 70 sub-populations of the NIST test data, with the lowest scoring demographic being West African females aged 65 -99 years old. The potential impact of a false match, including on protected subpopulations, is mitigated by the human investigator review requirement as well as by the requirement to develop additional evidence prior to making an arrest. The direct impact of an erroneously high match score from the ROC SDK is that a candidate would rank higher on the list of results returned by Lumen for human investigator review. The human investigator would then apply his or her skills, training, and experience in facial examination to closely review the unique facial characteristics of each of the candidates on the list. The human investigator may select one of the candidates from the list of results and make a possible match determination on the basis of similarity of facial characte ristics between the candidate and suspect image, or instead may determine that none of the candidates from the list of results are a possible match. If the false match eluded both the ROC SDK and the human investigator, it could become an investigative lead, which may trigger additional investigation into the relevant candidate. In the absence of additional evidence, erroneous investigative leads do not result in a false arrest . As shown by the NYPD statistics, facial recognition is used tens of thousands each year by a single agency without a known instance of false arrest (see https://www.nyc.gov/site/nypd/about/about -nypd/equipment- tech/facial-recognition.page). Across the nation, automated facial recognition has been used millions of times by law enforcement agencies, and there are only three known false arrests involving automated facial recognition. Each of these false arrests is attributable to violation of applicable policies and procedures, particularly the requirement to develop independent evidence to support probable cause prior to making an arrest. Page 15 of 26 (g) A description of any potential impacts of the facial recognition service on civil rights and liberties, including potential impacts to privacy and potential disparate impacts on marginalized communities, including the specific steps the agency will take to mitigate the potential impacts; and DEFER TO ARAPAHOE COUNTY (h) The agency’s procedures for receiving feedback, including the channels for receiving feedback, from individuals affected by the use of the facial recognition service and from the community at large, as well as the procedures for responding to feedback. DEFER TO ARAPAHOE COUNTY (3) Prior to finalizing an accountability report, an agency shall: (a) Allow for a public review and comment period; Page 16 of 26 (b) Hold at least three public meetings to obtain feedback from communities; and (c) Consider the issues raised by the public through the public meetings. (4) At least ninety days before an agency puts a facial recognition service into operational use, the agency shall post the final adopted accountability report on the agency’s public website and submit it to the agency’s reporting authority. The reporting authority shall post the most recent version of each submitted accountability report on its public website. (5) An agency shall update its final accountability report and submit the updated accountability report to the agency’s reporting authority at least every two years. (6) An agency seeking to procure a facial recognition service must require each vendor to disclose any complaints or reports of bias regarding the vendor’s facial recognition service. Rank One Computing Corporation has not received a complaint or report of bias regarding any version of the ROC SDK. Rather, in operational environments, the ROC SDK has shown a high degree of accuracy across all demographic sub-populations without statistically significant error differentials due to demographic bias. NIST FRVT testing has explored demographic performance differentials, with the results made publicly available on its website. In addition to the Demographic Effects series data noted above, which involves data from foreign visa applications, there are also demographic performance results available in the 1:1 Verification series that show the receiver operating characteristic curve error tradeoff between FMR and FNMR for four subpopulations – white male, white female, black male and black female – based on data from US mugshot photos (see Figures 157 -179 of the February 2, 2023 report). Page 17 of 26 Attachment B Colorado Bureau of Investigation Facial Recognition Accountability report December 2022 Agency and Vendor Information Agency Name Colorado Bureau of Investigation Agency Contact Investigations Agency Phone Number 303-239-4201 Vendor Name Idemia Software Information Name of Software Idemia MBIS Module – MorphoBis Face Version of Software 4.4 General Capabilities Create a template of an unknown person’s face image, to then compare it to a known mugshot database to determine whether there is a likely match. The comparison is achieved through a multi-stage architecture with successive algorithms and is then assessed by human analysis. Limitations The system is only as good as the mugshot photos law enforcement agencies submit to the CBI/FBI. Reasonably foreseeable Capabilities outside the scope of the agency’s proposed use While there are no plans to use it for such at this time, it could help identify a deceased person, or a victim of a crime if there is a photo available. Is the software/service live surveillance or mugshot based? Mugshot based. There is no live component to this system. A photo must be manually uploaded into the system of mugshots to be searched. What decision was used to make or support the Facial Recognition Software? The CBI believes having the technology available for use will help solve crimes Page 18 of 26 Purpose and Proposed Use of Facial Recognition Services The purpose of using Idemia’s MorphoBis Face software is to generate an investigative lead based on a photograph, or image pulled from a video to help solve an investigation into a crime. This is not a live surveillance system so there is no real time surveillance being used, it is strictly used on a case-by-case basis. An agency must be actively investigating a crime, with a case number, and have a usable photograph or image pulled from a video feed in order for the CBI to use the software. The photo will be entered into the software and run against the CBI and FBI mugshot databases only. Once the software returns its results, a CBI analysist who has been trained in Forensic Facial Comparisons will perform a manual analysis of the results and see if it is a possibility the generated results could be a lead of LEO. If the analysist determines it is a possibility, that lead is given to the requester as an investigative lead only. The leads generated cannot be used for probable cause and are not considered to be a positive identification of a person. Data Information and Security Type of Data inputs used Photograph, or a still image taken from a video How is the data generated, collected, and processed? The search photo is generated and collected from a surveillance video or camera, or taken by a witness etc. It is scanned into the computer and What type of data the system is reasonably likely to generate? The system may produce an investigative lead for law enforcement. The system is not to be used as a form of positive ID and cannot be used as a basis for probable cause. It is to be used as an investigative tool for the LEO to pursue as their investigation continues. How will data collected be securely stored and accessed? The software resides on the CBI secure network and can only be accessed from that secure connection. What, if any measures are taken to minimize the inadvertent collection of data beyond the amount necessary for the specific purpose the facial recognition software/service will be used? This does not apply; it is not a surveillance type system. Page 19 of 26 Agency’s Procedure to Include Periodically Undertaking Operational Tests per 24-18-304 Query the face recognition system with images whose exact binary copies have already been enrolled in the database. Ensure the Rank-1 match candidate has the same image as the probe. Continue to perform the first two steps with additional images as often as availability of computing resources and human effort allow. Testing is performed to ensure Gallery images are properly enrolled, and their corresponding templates are both valid and accessible. The Face Recognition (FR) system’s network access is not interrupted for any distributed resources. Software running on local and network resources is not exhibiting any failures. Data Integrity and Retention Policies How will the agency maintain and update records? The searched photo is not retained in the database after its search; therefore, it is never searched again. A copy of the report generated will remain within the record management system indefinitely for retention and audit purposes. How will the agency address error rates that are determined independently to be greater than 1%? Idemia is verified by the National Institute of Standards and Technology (NIST), who is quoted as saying “One important exception is that some developers supplied identification algorithms for which false positive differentials are undetectable. Among those is Idemia…” Idemia has been in the top ten for both Demographic differentials and vendor accuracy in the NIST tests for several years. How long will the agency keep the data? The CBI’s mugshot database is permanent, so all mugshots submitted to the CBI with an arrest will remain in the database. The search photo (probe) is never inserted or kept in the database. It is a simple search and purge function that takes place when searching against the database. What is the process by which data will be deleted, if applicable? A search and purge function is in place, as soon as a search image (probe) is done with its search of the database, it is purged from the system, it is not inserted into the database ever. Intended Benefits Benefits To aid in the investigation process to help identify potential subjects of a crime. Page 20 of 26 Any data or research demonstrating these benefits: Not addressed Policies and Procedures Training Procedures Users must have training in both the Facial Software, as well as an FBI approved face comparison and identification training. CBI Standard Operating Procedure SOP# facial recognition Use Policy CBI Facial Identification Directive 4.30 What processes will be required prior to each use of the facial recognition software/service? Photo in question must be of usable quality. There must be an active case number and ongoing investigation that involves the person in question in the photo. User will Login with a secure username/password. Use Cases When and why will facial recognition Software/services be used? After a written request has been made to the CBI. The CBI requires that the request come from a Law Enforcement Agency email address, and that they provide an active case number, and description of the crime. CBI will then perform a Quality Control check to determine if the photo is of usable quality. How will the facial recognition software/service be used? By CBI employees who are trained on the Idemia Software and have successful completed Forensic Facial Training Programs. To whom will the data be available? Only the law enforcement agency that requested the search and retained by the CBI. Is the technology constant or only under specific circumstances? Not constant, it is not a live feed surveillance system. It requires a person to manually upload a photo into the system in order for it to be used. It will only be used when a crime has been committed and a law enforcement agency has a good quality photo of the suspect to search. Where is the technology deployed or used? The software is not deployed to a location. It is used from CBI computers to search the CBI and FBI database. It is not a surveillance system. Page 21 of 26 Outside Agency Use If the facial recognition software/service will be used or operated by an entity on the agency’s behalf, provide a description of the entity’s access and all applicable protocols: No other agency will have use of The CBI’s system. They can request searches be performed; however, a CBI staff member will complete these searches. Does the agency Intend to share access to the facial recognition software/service or the data with any third party that is not law enforcement? No If the answer above is yes, describe the rules and procedures by which the agency will ensure that the third party complies with the agency’s use policy: N/A Potential impacts Information concerning rate of false matches, potential impacts on protected subpopulations There will never be a positive identification made, the CBI will give an investigational lead if it is believed there are enough similarities between the searched photo and the result from the database. A LEO must not use the results as more than an investigative lead. What are the potential impacts on Civil Right & Liberties, and potential impacts to privacy and marginalized communities? According to NIST, Idemia has the lowest variance (bias) in match rates for different genders, age, and ethnic groups and is ranked first in the 2022 NIST demographic differentials summary report. Feedback What is the procedure for receiving feedback from individuals and communities? Not addressed Procedure for Response to Feedback? Not addressed Page 22 of 26 Attachment C Department of Revenue, Motor Vehicle Investigations Unit, Law Enforcement Communications Center FR: Colorado DMV (i) the name, vendor, and version of the facial recognition service; and Thales’ Facial Comparison Solution (FCS), Biometric Investigation Workstation (ii) a description of its general capabilities and limitations, including reasonably foreseeable capabilities outside the scope of the agency's proposed use; Facial recognition (FR) is a fraud prevention, fraud detection, business integrity, and risk mitigation tool used by the majority of U.S. and Canadian credential issuing authorities. FR software automates the process of photo image matching and is designed to determine whether th e person shown in one photograph is likely to be the same person shown in another photograph. Facial recognition technology automates the process of comparing one photograph to other photographs to find potential matches. Facial recognition is a software application capable of potentially identifying or verifying the identity of a person by analyzing patterns based on a person's facial feature locations and contours and comparing them to those features in other photographs. (b) (i) the type of data inputs that the facial recognition service uses; FR software is based on the ability to recognize a face and measure the various features of the face. Every face has numerous distinguishable features that enable electronic matching. The following are examples of such features: 1. Distance between the eyes 2. Length or width of the nose 3. Depth of the eye sockets 4. Shape of the cheekbones 5. Dimensions of the mouth 6. Length of the jaw line These features are measured to create a numerical value that represents the characteristics of the facial structure, which can be efficiently evaluated by software to produce comparison results. Templates are one such method used by some FR systems to represent the characteristics of the facial structure. (ii) how data is generated, collected, and processed; and Data is collected each time a customer applies for a credential within the Colorado DMV. A photograph and fingerprint are taken on most instances when getting a credential. Within the DMV system, there are potentially numerous photographs taken during previous credential issuances and stored in the system. As an example, a person can have a picture in the DMV system as a 15 or 16 year old, one when he turned Page 23 of 26 18, another at age 21 and then a picture taken every 4 years, resulting in numerous photographs taken for one person. The FR system itself does not contain any specific applicant PII. The only PII is in the Central Server application of the DMV’s system. FR is a type of biometric software application that can identify a specific individual in a digital image by analyzing and comparing patterns. (iii) the type of data the facial recognition service is reasonably likely to generate; Data collected is for the sole purpose of identifying possible matches in the system with previous photographs taken, then against other photographs to determine if a person has more than one identity. (c) a description of the purpose and proposed use of the facial recognition service, including: A core responsibility of the credential issuing authority is to ensure that each applicant has only one identity on record. This is commonly referred to as the one person/one record principle. An FR program assists jurisdictions in ensuring that an individual has only one identity and is a proactive approach to identifying fraud before the issuance process is complete. FR systems are designed to combat identity fraud and identity theft. (i) what decision will be used to make or support the facial recognition service; and (ii) the intended benefits of the proposed use, including any data or research demonstrating those benefits; Facial recognition assists credential issuing authorities in identifying suspicious activities, including: 1. An individual holding more than one credential u nder different names (identity fraud or multiple fictitious identities) 2. Different individuals holding a common identity and credential number (identity theft) 3. Clerical or data errors, such as attaching a photo to the wrong driver record 4. Patterns of clerical error that may indicate collusion or internal fraud (d) a clear use and data management policy, including protocols for the following: (i) how, when, and by whom the facial recognition service will be deployed or used; The FR system is used by the Colorado DMV-Motor Vehicle Investigations Unit (MVIU) on a daily basis to prevent identity theft and or to help identify/compare a photograph with previously known photographs. to whom data will be available; the factors that will be used to determine where, when, and how the technology is deployed; and other relevant information, such as whether the technology will be operated continuously or used only under specific circumstances; FR requests for assistance are considered for law enforcement agencies with higher profile or more serious criminal investigations, often crimes against persons or serious crimes against property. MVIU has a Law Enforcement request for assistance form, affidavit of intended use: Offenses such as national security violations, homicide, kidnapping, sexual assault, robbery, aggravated assault, threats of bodily harm, extortion or threat to injure a person, sex offenses, crimes against children Page 24 of 26 or spouse, resisting an officer, and weapons offenses. MVIU may also assist with property crimes if/when appropriate and time allows. (ii) if the facial recognition service will be operated or used by an entity on the agency's behalf, a descript ion of the entity's access and any applicable protocols; No one other than the MVIU will be conducting evaluations using the FR system. (iii) any measures taken to minimize inadvertent collection of additional data beyond the amount necessary for the specific purpose for which the facial recognition service will be used; No one other than MVIU personnel will have access to the FR system, therefore no additional information or data will be provided. (iv) data integrity and retention policies applicable to the data collected using the facial recognition service, including how the agency will maintain and update records used in connection with the service, how long the agency will keep the data, and the processes by which data will be deleted; MVU keeps the following information: Request type Status (no match, match found) Agency type Requesting agency Assignee (who worked the case from MVIU) Type of case/Classification or reason for request (type of crime being investigated) Compliance with interagency data sharing agreement (no assistance is provided for an immigrations related request) These records have been kept since 2016, and are tracked by fiscal year. No records have been deleted at this time. Any information provided by the MVIU to a law enforcement agency that makes a request for FR assistance will be a possible lead in an investigation. (v) what processes will be required prior to each use of the facial recognition service; LE agencies making requests for assistance will complete an affidavit for request, it will be approved if it meets the established requirements. (Offenses such as national security violations, homicide, kidnapping, sexual assault, robbery, aggravated assault, threats of bodily harm, exto rtion or threat to injure a person, sex offenses, crimes against children or spouse, resisting an officer, and weapons offenses. MVIU will assist with property crimes on a case by case basis, also.) (vi) data security measures applicable to the facial recognition service, including: (a) how data collected using the facial recognition service will be securely stored and accessed; and Page 25 of 26 (b) if an agency intends to share access to the facial recognition service or the data from that facial recognition service with any third party that is not a law enforcement agency, the rules and procedures by which the agency will ensure that the third party complies with the agency's use and data management policy; MVIU does not share information with agencies that are not considered law enforcement. As previously stated, data collected as to LE agencies that make requests are kept by MVIU. If results of a request are shared with a law enforcement agency, that agency can only share the information with a prosecutor’s office, similar to police reports that are part of an investigation. (vii) the agency's training procedures, including those implemented in accordance with section 24 -18-305, and how the agency will ensure that all personnel who operate the facial recognition service or access its data are knowledgeable about and able to ensure compliance with the use and data management policy before using the facial recognition service; and MVIU training procedures: Training emphasizes that FR is an investigative tool that allows the investigator to potentially identify a subject via photo image capture and image gallery development. Users understand the basics of the security protocols in place that limit access to the FR system. Securing the system is fundamental to the protection of the PII contained in the system. Users complete AAMVA’s Fraudulent Detection and Remediation (FDR) course, along with several weeks of fraud prevention and fraudulent document review. These training classes take approximately three to six weeks of training. Users then receive one-on-one training with the FR system which includes the review of photographs through facial characteristics and the FR system. Training includes learning the FR system, review of the Biometric Investigative Platform User Guide, limitations on its use, ethical use and privacy, processes and procedures, application usage, and facial and fingerprint identification. Investigators are trained in knowing that FR is an investigative tool and does not provide generate match/no match results. The results are a “possible match” that need to have a facial identification examination completed by at least one qualified staff member to make a determination as to the probability of a match. Once trained, investigators use the FR system on a daily basis, spending at least one hour per day reviewing photographs and making decisions on those reviews. Page 26 of 26 (viii) any other policies that will govern use of the facial recognition service; (e) the agency's testing procedures, including its processes for periodically undertaking operational tests of the facial recognition service in accordance with section 24-18-304; MVIU conducts tests on a regular basis (often several tests per week) to test the system to verify its effectiveness. Those tests include running known photographs through the FR system under an “alias name” to verify if the system yields any possible matches. (f) information concerning the facial recognition service's rate of false mat ches, potential impacts on protected subpopulations, and how the agency will address error rates that are determined independently to be greater than one percent; Results from FR are always reviewed to see if they are correctly identifying a second recor d under a different identity. The system is set up to show possible leads, and the human element of comparing the two photographs and fingerprints is then done to verify a potential match. It is then up to the investigator(s)/review to determine if it is a possible match. (g) a description of any potential impacts of the facial recognition service on civil rights and liberties, including potential impacts to privacy and potential disparate impacts on marginalized communities, including the specific steps the agency will take to mitigate the potential impacts; and (h) the agency's procedures for receiving feedback, including the channels for receiving feedback, from individuals affected by the use of the facial recognition service and from the community at large, as well as the procedures for responding to feedback. By relying on the FR system and the training involved and daily use of the system followed by human review and investigation, potential impacts to a person’s civil rights and liberties is gre atly reduced, if not completely eliminated. Results from the FR system are always a first step in the investigation and are never considered the final result. It is a basic tenet that potential matches from Facial Recognition will generate human examination and no other action, such as an arrest or corrective action, should be taken solely on the basis of a FR result. 970.748.4004 eric@avon.org TO: Honorable Mayor Amy Phillips and Council members FROM: Eric Heil, Town Manager RE: Ordinance 23-02 Referring the Establishment of a Downtown Development Authority to a Special Election DATE: June 8, 2023 SUMMARY: This report provides an overview of Ordinance No. 23-02 Referring the Establishment of a Downtown Development Authority to a Special Election. Ordinance No. 23-02 indicates the proposed DDA boundaries and refers the question of formation of the DDA to a special election on Tuesday, August 29, 2023. The “eligible electors” for the special include residents who are registered voters, property owners and business lessees within the proposed DDA boundary. Council previously held a work session on the process to form a Downtown Development Authority (“DDA”) on April 25, 2023. The Town Council provided direction last fall to include the formation of a Downtown Development Authority as a goal for 2023. Included with this Report is a draft Avon Downtown Development Authority Plan document. Presented for Council consideration is the adoption of Ordinance No. 23-02 on 1st Reading. Council is not required to adopt an Avon DDA Plan at this time but is encouraged to adopt the Avon DDA Plan as a “draft” for consideration by the DDA Board of Directors if the formation of the Avon DDA is approved by the voters at the special election. PURPOSE AND GOALS: Downtown Development Authorities are authorized by statute to promote the sound economic growth of a community’s central downtown commercial core and alleviate or prevent blight conditions. Avon’s workforce’s current extreme housing shortages have directly impacted Avon’s business community and arrested Avon’s businesses’ stability and sound growth. The impacts are widespread to the extent of impacting public services as well. Investment in workforce housing and public infrastructure to support a growing community is necessary to support, stabilize and promote the solid economic growth of the Avon community. The draft Avon DDA Plan states that at least 50% of the tax increment financing revenue source of the Downtown Development Authority shall be dedicated to Community Housing, and the remaining revenues are devoted to public infrastructure, facilities, and amenities in the downtown area as determined by the Avon DDA Board and Council. FORMATION PROCESS: Please see the April 6, 2023 Report which describes the formation process. The Avon Planning and Zoning Commission (“PZC”) conducted a work session on May 2 and conducted public hearings on May 23 and June 6. The Avon PZC took action to recommend Council proceed with the formation of the Avon Downtown Development Authority and noted that the goal of funding “Community Housing” needs further refinement to identify needs and target housing for appropriate based on income levels and that the impact to other tax entities needs further analysis, especially the impact to Eagle County School District. EMPLOYER SURVEY: The Town of Avon launched an Employer Survey for all businesses within the Avon DDA proposed boundary to gather data on the impact of workforce housing shortages. The questions are included in Appendix B of the Avon DDA Plan. The survey was sent with an initial deadline date of June 9, 2023. Due to a low response rate thus far, the deadline date will be extended into mid-July. The results of the Employer Survey will be included in the Avon DDA Plan. Page 2 of 4 ELIGIBLE ELECTORS: Please see the April 6, 2023 Report which describes eligible electors. More information will be provided at the Council presentation on eligible electors. FINANCIAL CONSIDERATIONS: The Avon DDA is proposed to establish an additional source of funding for Community Housing and public infrastructure and facility projects. Additional funding would occur through “tax increment financing”. Tax increment financing authorizes the Downtown Development Authority to capture the increment of increased property tax that occurs through new construction and development. The amount of property tax that is captured depends upon the timing, type and quantity of new construction which occurs in the Avon DDA area. Commercial construction is assessed at a higher rate than residential property and therefore generates a larger increment. The current Avon Urban Renewal Authority tax increment revenues are presented for illustration purposes. Since the adoption of the Avon Urban Renewal Authority in 2006 new construction includes the River Front PUD (i.e. Westin, but not including Lot 1), the Wyndham, the Buck Creek Medical Center, Northside Restaurant (which redeveloped the former Pizza Hut) and Walgreens (which redeveloped the former Denny’s). This construction over the last 17 years now results in the following annual tax increment financing revenues: Taxing Entity Mill Levy Percentage AURA Tax Increment Total Property Tax Revenues Avon 8.956 14.29% $ 262,567.00 $ 2,082,427.00 Eagle County 8.499 13.56% $ 249,169.00 $ 1,976,167.00 Eagle County School District 24.649 39.32% $ 772,646.00 $ 5,731,326.00 Colorado Mountain College 4.085 6.52% $ 119,762.00 $ 949,834.00 Eagle River Fire 9.703 15.48% $ 284,467.00 $ 2,256,118.00 Eagle Valley Library 2.763 4.41% $ 81,004.00 $ 642,446.00 Eagle River Water & San 0.759 1.21% $ 22,252.00 $ 176,481.00 Eagle County Health Services 2.774 4.43% $ 81,327.00 $ 645,004.00 Colorado Water Conservancy 0.501 0.80% $ 14,608.00 $ 116,491.00 TOTAL 62.689 $ 1,887,802.00 $ 14,576,294.00 The Avon Urban Renewal Authority tax increment financing collects 11.2% of total property tax in Avon. The Avon Station and Confluence Metropolitan Districts are not included in the Avon Urban Renewal Authority tax increment financing because these districts were approved by the Town of Avon as developer financing mechanisms for specific projects. It is anticipated Avon Station, Confluence and Village metropolitan districts would not be included in the Avon DDA tax increment financing because these are districts approved by the Town of Avon as developer financing mechanisms for specific developments within Avon. The AURA Tax Increment shown above will revert the respective taxing entities when the West Town Center Investment Plan expires in 2032. As shown above, the formation of the Avon DDA would result in the Town of Avon pledging its property tax increment for the duration of the Avon DDA. Page 3 of 4 FINANCIAL MODELLING: As specific projects go forward it is possible to estimate the tax increment from those projects and plan for bond financing to support Community Housing and other public infrastructure and public facilities. Considering that it has been 17 years for the West Town Center Investment Area to realize the construction that occurred which generates the current tax increment, it may require 10 years for the Avon DDA to reach this same level of tax increment financing revenue if current projects proceed and the Village (at Avon) is active with new development. This assumes there is not an economic downtown during this period. RELATIONSHIP TO AVON URBAN RENEWAL AUTHORITY: Portions of the Avon DDA overlap the West Town Center Investment Plan area of the Avon Urban Renewal Authority. The West Town Center Investment Plan will expire in 2032. There are two remaining lots within the West Town Center which are zoned Town Center (Lot 3 and Lot B). The Avon URA West Town Center tax increment financing is first in place and would take priority in capturing the property tax increment for Lot 3 and Lot B until 2032. After 2032, the Avon DDA would continue to capture the property tax increment. Funding of a public parking garage on Lot B or the Avon Recreation Center parking is identified as a goal in the West Town Center Investment Plan and as a potential project in the Avon DDA Plan. Another potential projects in the West Town Center Investment Plan area is planning and incentivizing the redevelopment of the Sun Road area (Walgreen’s, First Bank and US Post Office). Planning has not commenced in this area. Any redevelopment of this is area is expected to be complex and will require a long lead team to coordinate with existing property owners. It is speculative as to whether redevelopment in this area would commence before the expiration of the West Town Center Investment Plan in 2032. POTENTIAL PROJECTS: The proposed primary purpose of the DDA plan is to support the development of Community Housing in the DDA Plan area. DDA revenue streams may also be used for public infrastructure, facilities and amenities within the boundary. A list of potential projects is included in the draft Avon DDA Plan. It is anticipated and recommended that two high priority projects should include financing of a public parking structure in the West Town Center Investment Plan area and construction of housing that is associated with planned early childhood education facility on Planning Area E. Town of Avon is partnering with Vail Valley Foundation on this project. Initial conceptual designs indicate that 40+ residential apartments could be constructed on Planning Area E and the adjacent Lot 8 in the Village (at Avon). This housing is anticipated to be prioritized for employees of the early childhood education facility, then employees of the Eagle County School District, then employees of charter schools, other early childhood education facilities and day care facilities. IMPACT TO OTHER TAXING ENTITIES: The potential impact to other taxing entities is the future increased property tax revenue that may come from new development which would be collected by the Avon DDA tax increment financing. It is very difficult to predict what the actual impact may be because we don’t know the timing, type and quantity of new construction in the Avon DDA boundary. Financial impacts may be mitigated in part by the pending substantial increases in assessed valuation and corresponding increase in property tax revenue. Tax increment financing for development authorities is premised on the theory that the development authorities are tool that promotes more development than would otherwise occur, a higher quality of development that generates higher values, an elevated character of the area that increases the property value of surrounding properties, and thus higher property tax for all taxing entities, after the expiration of the development authority. Page 4 of 4 School districts are treated differently than other taxing entities and receive funding from the State of Colorado to equalize the amount of funding per pupil. Please see Attachment F for more information on the school district budgeting and tax increment financing. REQUESTED ACTION: Council must approve first reading on June 13, 2023 to stay on track for an August 29, 2023 special election. The Avon DDA formation election requires a specialized voter list which will require the Town of Avon to conduct its own election. The Avon DDA election would not work well as a coordinated election in November with Eagle County. PROPOSED MOTION: “I move to approve first reading of Ordinance No. 23-02 Referring the Establishment of a Downtown Development Authority to a Special Election and Amending the Avon Municipal Code to Adopt Title 4 – Avon Downtown Development Authority.” Thank you, Eric ATTACHMENT A: Ordinance No. 23-02 ATTACHMENT B: Draft Avon DDA Plan ATTACHMENT C: Report on DDA Formation dated April 6, 2023 ATTACHMENT D: School District Finance and Tax Increment Financing Ord 23-02 Downtown Development Authority Page 1 of 3 ORDINANCE NO. 23-02 REFERRING THE ESTABLISHMENT OF A DOWNTOWN DEVELOPMENT AUTHORITY TO A SPECIAL ELECTION AND AMENDING THE AVON MUNICIPAL CODE TO ADOPT TITLE 4 – AVON DOWNTOWN DEVELOPMENT AUTHORITY 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 Avon Town Council (“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, pursuant to C.R.S. §31-25-801, et seq., Council, by ordinance, may submit the question of the establishment of a Downtown Development Authority to the qualified electors within the proposed Downtown Development Authority boundary; and WHEREAS, pursuant to Article, Section 20 of the Colorado Constitution and C.R.S. §31-25- 804, any tax or other matters arising under Article, Section 20 of the Colorado Constitution are required to be approved by the qualified electors within the boundaries of the proposed Downtown Development Authority; and WHEREAS, Downtown Development Authorities are quasi-governmental entities that provide organizational focus and financing to support downtown economic developments and improvements; and WHEREAS, an active central business district contributes to the vibrancy and success of the Town for both residents and visitors as a civic, historic, cultural, and economic focal point; and WHEREAS, blighted areas within the Town's central business district substantially impair the sound growth of the Town's central business district; and WHEREAS, the Town of Avon Planning and Zoning Commission adopted a Downtown Development Authority Plan WHEREAS, Council finds and determines it is necessary to establish a Downtown Development Authority, which will, among other things, (a) promote the public health, safety, prosperity, security, and general welfare of the inhabitants thereof and the people of the State of Colorado, (b) serve a public use, (c) halt or prevent the deterioration of property values or structures within the Town's central business district, (d) halt or prevent the growth of blighted areas within the Town's central business district, (e) will assist the Town in the development and redevelopment of the Town's central business district and in the overall planning to restore the Town's central business district, and (f) will be of special benefit to the property within the proposed boundaries of the Downtown Development Authority; and Ord 23-02 Downtown Development Authority Page 2 of 3 WHEREAS, Council finds and determines it is necessary to submit the question of the establishment of a Downtown Development Authority a vote of the qualified electors within the proposed Downtown Development Authority boundary. 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 Town Council. Section 2. Establishment of Boundaries. The area within the proposed boundaries of the Avon Downtown Development Authority, as described in “EXHIBIT A: Legal Desciption” and depicted in “EXHIBIT B: Avon Downtown Development Authority Map”, attached and incorporated by this reference, is and traditionally has been the location of the principal business, commercial, financial, service, and government center of the Town, and is and has been zoned and used accordingly. Such area is established as being within the “central business district” and “downtown” area of the Town as defined by C.R.S. §31-25-801, et seq. Section 3. Election Call. A special election of qualified electors of the proposed Downtown Development Authority shall be conducted on August 29, 2023, pursuant to the authority and requirements of the Avon Town Charter and C.R.S. §31-25-801, et seq. Such special election shall be held as a mail ballot election in accordance with the laws of Colorado, except as otherwise provided in the Charter or ordinances of the City. The Town Clerk shall be the designated election official. Section 4. Ballot Question No. 1. At the August 29, 2023 special election, there shall be submitted to the qualified electors of the proposed Downtown Development Authority the following ballot question in substantially the following form: Ballot Question No. 1: ESTABLISHING AVON DOWNTOWN DEVELOPMENT AUTHORITY SHALL THE AVON DOWNTOWN DEVELOPMENT AUTHORITY BE ESTABLISHED IN ACCORDANCE WITH TOWN OF AVON ORDINANCE NO 23-02? Section 5. Avon Downtown Development Authority. Upon approval by a majority vote of the qualified electors voting at the election for the establishment of the Avon Downtown Development Authority, the Avon Downtown Development Authority shall be a body corporate and political subdivision with all the purposes and powers now or hereafter authorized by C.R.S. §31-25-801, et seq., and all additional and supplemental powers necessary and convenient to carry out and effectuate its purposes, and such other powers and authority as provided by law, in accordance with and subject to Avon Municipal Code Title 4 – Avon Downtown Development Authority. Section 6. Title 4 – Avon Downtown Development Authority. Title 4 – Avon Downtown Development Authority is hereby adopted in its entirety as set forth in EXHIBIT C: TITLE 4 – AVON DOWNTOWN DEVELOMPENT AUTHORITY attached hereto. Ord 23-02 Downtown Development Authority Page 3 of 3 Section 7. 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. 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 8. Effective Date. This Ordinance shall take effect thirty days after the date of final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 9. Safety Clause. 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. Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING by the Avon Town Council on June 13, 2023, and setting such public hearing for June 27, 2023 at the Council Chambers of the Avon Municipal Building, located at One Hundred Mikaela Way, Avon, Colorado. ADOPTED ON SECOND AND FINAL READING by the Avon Town Council on June 27, 2023. BY: ATTEST: _____________________________ ___________________________________ Amy Phillips, Mayor Miguel Jauregui Casanueva, Town Clerk APPROVED AS TO FORM: ____________________________ Karl Hanlon, Town Attorney VAIL VALLEY OFFICE 30 Benchmark Road, Suite 216, PO Box 978 Avon, CO 81620 DENVER OFFICE 9618 Brook Hill Lane Lone Tree, CO 80124 970.949.5072 info@inter-mtn.net TOWN OF AVON DDA LAND DESCRIPTION‐NORTH OF I‐70  A parcel of land located in part of Sections 7 and 8, Township 5 South, Range 81 West of  the Sixth Principal Meridian. Also being North of the Interstate 70 right‐of‐way beginning at  the Southernmost point of Tract I, Village at Avon Filing 3 and the West right‐of‐way line of  William J. Post Boulevard.   Thence Northwest along the West line of Tract I and Tract B, Village at Avon Filing 3 to the  Northwest corner of Tract B;  Thence Northeast along the North line of Tract B to the Northwest line of Tract F;  Thence Northeast to the North corner of Tract F and the Swift Gulch right‐of‐way;  Thence Southeast along the South right‐of‐way of Switch Gulch to the southeast corner of  Tract I on the west right‐of‐way line of Post Boulevard;  Thence Northeast across Swift Gulch Road to the Northwest corner of Avon Landing;  Thence Northeast to the Northernmost corner of Block 2, Avon Landing;  Thence southeast to the Northeast corner of Block 3, Avon Landing;  Thence continuing on the North line of Block 3 to the Northeast corner of Block 3;  Thence South along the East line of Avon Landing to the Southeast corner of Block 4, Avon  Landing and a point on the north right‐of‐way line of Interstate 70;  Thence continuing Northwest along the South line of Block 4, Avon Landing and the right‐ of‐way line to the Southwest corner of Block 4 also being the Southeast corner of Lot 2,  Stolport Station Subdivision;  Thence continuing Northwest along the South line of Stolport Station Subdivision to a point  on the South right‐of‐way line of Post Boulevard;  Thence Northwest across Post Boulevard right‐of‐way to the point of beginning.   TOWN OF AVON DDA LAND DESCRIPTION‐SOUTH OF I‐70  A parcel of land being part of Section 7, Township 5 South, Range 81 West and Sections 1,  2, 11, and 12, Township 5 South, Range 82 West of the Sixth Principal Meridian. Also being  South of the Interstate 70 right‐of‐way beginning at the Westernmost corner of Tract G,  Village at Avon Filing 1 on the Southeast right‐of‐way line of Tract A, Post Boulevard, also   EXHIBIT A: Legal Description TOWN OF AVON DDA LAND DESCRIPTION‐SOUTH OF I‐70 (CONTINUED)  being the most easterly corner of Tract A; Thence Southwest along the Southeast line of  Tract A to the Northernmost corner of Lot 5, Village at Avon Filing 1;  Thence Southwest along the North line of Lot 5 to the North line of the Denver and Rio  Grande Western Railroad right‐of‐way;  Thence West along the North line of the railroad right‐of‐way to the Easternmost point of  Tract D, Village at Avon Filing 1;  Thence Northwest along the North line of Tract D and the South right‐of‐way line of Yoder  Avenue to the intersection with the East right‐of‐way line of Post Boulevard;  Thence Southeast along the East right‐of‐way line of Post Boulevard to the North right‐of‐ way line of the Union Pacific Railroad;    Thence Northwest along the North right‐of‐way line of the Railroad to the Southwest  corner of Lot 1, Village at Avon Filing 1, also being the southeast corner of Chapel Square  Subdivision; thence continuing northwest along the northerly Railroad right of way line to a  point on the southerly boundary line of Tract B‐1 of A Resubdivision of Tract B, Chapel   Square Subdivision at its intersection with the extension of the East boundary line of Lot 2  of Lot 1/2, Nottingham Station Subdivision;  Thence continuing Southwesterly along the East boundary line of Lot 2 and its extension to  the Southerly right‐of‐way line of Hurd Lane;  Thence Northwest along the South right‐of‐way line of Hurd Lane and its extension to a  point on the West right‐of‐way line of Avon Road;  Thence Northwest along the West right‐of‐way line of Avon Road to the Southeast corner  of Avon Town Square Commercial Condominiums on the North right‐of‐way line of the  railroad right‐of‐way;  Thence Northwest along the North right‐of‐way line of the railroad to the East right‐of‐way  line of Lake Street;  Thence Northeast along the East right‐of‐way line of Lake Street to the intersection with  West Beaver Creek Boulevard right‐of‐way;  Thence across Beaver Creek Boulevard to the Southernmost corner of Greenbriar  Condominiums;  Thence Northeast along the East line of Greenbriar Condominiums to the South line of the  Interstate 70 right‐of‐way line.  Thence Southeast along the South line of the Interstate 70 right‐of‐way to the Northeast  corner of Lot 1, Village at Avon Filing 1;  Thence Southeast along the East line of Lot 1 to the North line of Post Boulevard, Tract A,  Village at Avon Filing 1;  Thence Southeast along the North line of Tract A, the North right‐of‐way line of Post  Boulevard to the point of beginning.  2  EXHIBIT A: Legal Description TOWN OF AVON DDA LAND DESCRIPTION, ADJACENT TO NOTTINGHAM ROAD  A parcel of land being a part of Section 1 and 12, Township 5 South, Range 82 West of the  Sixth Principal Meridian, County of Eagle, State of Colorado.  Beginning at the East corner  of Lot 1, Block 1 of Benchmark at Beaver Creek; thence Northwest along the Southwest  boundary of Block 1 to the West corner of Lot 4;  Thence Northeast along the Northwest boundary of Lot 4 to the North corner of Lot 4, also  being a point on the South boundary line of Nottingham Road;   Thence Southeast along the South boundary line of Nottingham Road to its intersection  with the extension of the Northwest boundary line of Lot 67, of the resubdivision of Lots  67 and 68, Block 1, Benchmark at Beaver Creek;  Thence Northeast across Nottingham Road along the Northwest boundary of Lot 67 and its  extension to the North corner of Lot 67, also being the South boundary of Swift Gulch  Road;   Thence Southeasterly along the South boundary line of Swift Gulch Road to the East corner  of Lot 68 of the resubdivion of Lots 67 and 68, Block 1, Benchmark at Beaver Creek;  Thence Southwest along the Southeast boundary of Lot 68 to the South corner of Lot 68  also a point on the North right‐of‐way boundary line of Interstate Highway 70;   Thence continuing along the North right‐of‐way boundary line of Interstate Highway 70 to  the point of beginning.  3  EXHIBIT A: Legal Description DRAFT CONCEPT PLAN 2023 DOWNTOWN DEVELOPMENT AUTHORITY N TOTAL ACREAGE OF AVON TOWN LIMITS: 5391.36 AC TOTAL ACREAGE OF PROPOSED DDA AREA: 294.1 AC OR 5.5% OF THE TOWN OF AVON DRAFT CONCEPT PLAN 2023 DOWNTOWN DEVELOPMENT AUTHORITY N TOTAL ACREAGE OF AVON TOWN LIMITS: 5391.36 AC TOTAL ACREAGE OF PROPOSED DDA AREA: 294.1 AC OR 5.5% OF THE TOWN OF AVON EXHIBIT C – TITLE 4 – Avon Downtown Development Authority Title 4 – Avon Downtown Development Authority 4.04 Establishment. There is hereby established the Avon Downtown Development Authority, which shall be referred to as the Avon DDA. 4.04.010 Purpose. The purposes of the Avon DDA are set forth generally in the DDA Statutes and set forth more specifically in the DDA Plan. 4.04.020 Authority. The Avon DDA shall have all authority set forth in the DDA Statutes and all authority under the Town of Avon’s Home Rule Charter. 4.04.030 Interpretation. The DDA Statutes and this Title 4 shall be liberally construed to effect the purposes and objects of this Title 4. This Title 4 shall supersede the DDA Statutes in the event of any conflict. 4.08 Definitions. The definitions set forth the in DDA Statutes shall apply unless the conflict with any provision in this Title 4. Avon DDA means the Avon Downtown Development Authority as authorized and defined in C.R.S. §31- 25-801 et. seq. DDA Board means the board of the Avon DDA DDA Plan means the plan of development document for the Avon DDA that is required to be adopted in the DDA Statutes. DDA Statutes means C.R.S. §31-25-801 et. seq. TIF means tax increment financing 4.12 Duties. The DDA Board shall have the following duties: 4.12.010. Review and Approval Authority. (1) DDA Plan. The DDA Board shall review and adopt a DDA Plan, which shall be subject to concurring Council approval. (2) DDA Budget. The DDA Board shall review and adopt the annual DDA budget, and any revisions thereto, which shall be subject to concurring Council approval. (3) Plan of Development Area. The DDA Board shall review any Plan of Development Area and shall provide recommendations to the Council on the adoption of any Plan of Development Area. 4.12.020 Public Hearing. The DDA Board shall conduct a public hearing prior to taking action to adopt a DDA Plan, adopt the annual DDA budget or any amendments thereto, or adopt a recommendation on a Plan of Development Area. EXHIBIT C – TITLE 4 – Avon Downtown Development Authority 4.12.030 Criteria for Actions. The DDA Board shall consider whether proposed actions support or advance the purposes of the DDA Plan, DDA Statutes, or Avon Comprehensive Plan which considering any actions within the review and approval authority of the DDA Board. 4.12.040 Time for Action. The DDA Board shall take action on the adoption of the DDA Plan or recommendation of a Plan of Development Area within seventy-five (75) days of referral of such documents and shall take action on the annual budget or any amendments to the annual budget within forty-five (45) days of referral of such document. The failure to take action to adopt or recommend a document referred to the DDA Board within the defined timeframe shall be deemed an approval of the DDA Board unless Council extends the time for such action. 4.16 Relationship to Council. The actions of the DDA Board shall be subject to review and approval of Council: (1) DDA Plan. The adoption of the DDA Plan and any amendments to the DDA Plan by the DDA Board shall be subject to approval by Council. (2) Budget. The adoption of the annual budget and any revisions to the annual budget for the DDA shall be subject to approval by Council. Council shall have the authority to adopt the DDA budget as may be required for to satisfy debt payments and contractual terms. (3) Plan of Development Area. The approval of a Plan of Development Area which receives DDA TIF funding by the Avon DDA shall be approved by Council after considering recommendations of the DDA Board. 4.20 Board Membership. The DDA Board shall be composed of five (5) to eleven (11) members appointed by the Council, which shall include one (1) member of Council. 4.24 Qualifications of DDA Board Members. The qualifications of DDA Board members are set forth in the DDA Statutes. 4.28 Quorum. A majority of the duly appointed members of the DDA Board shall constitute a quorum for the transaction of business, but in the absence of a quorum, a lesser number shall adjourn any meeting to a later time or date. In the absence of all members, any staff member shall adjourn any meeting to a later time or date. 4.32 Term. The term of office for a DDA Board member shall be four (4) years on an overlapping tenure. The initial terms shall be staggered as set forth in C.R.S. §31-25-805(2). 4.36 Vacancies. A vacancy on the DDA Board shall occur whenever a member of the DDA Board is removed by the Council, dies, becomes incapacitated and unable to perform the required duties for a period of ninety (90) days, resigns, ceases to be a qualified member of the DDA Board or is convicted of a felony. In the event a vacancy occurs, the Council shall appoint a successor to fill the vacancy and serve the remainder of the term of the former member. EXHIBIT C – TITLE 4 – Avon Downtown Development Authority 4.40 Removal from Office. A members of the DDA Board may be removed for misconduct, conduct unbecoming of a Town official, violation of the Town's code of ethics, inefficiency or more than two (2) unexcused absences within a twelve-month period. Prior to removal, Council shall conduct a hearing and shall provide written notice to the DDA Board member stating the grounds for removal at least three (3) days prior to the hearing. 4.44 Officers. The DDA Board shall select its own chairperson, a vice chairperson and a secretary from among its members. The chair or, in the absence of the chair, the vice chair, shall be the presiding officer of its meeting. In the absence of both the chair and the vice chair from a meeting, the members present shall appoint a member to serve as acting chair at the meeting. 4.48 Compensation. All members of the DDA Board shall serve with compensation at a rate established annually by the Council and shall be reimbursed for all authorized personal expenses incurred while performing duties as a DDA Board member. 4.52 Staff. The Town Manager shall serve as the Executive Director of the DDA Board and shall provide for the service of a recording secretary who shall act in the capacity of secretary for the DDA Board. 4.56 Rules and Regulations. The DDA Board shall operate in accordance with its own rules of procedure as provided for in Section 11.2 of the Town Charter; provided, however, that the DDA Board shall submit its proposed rules or any amendment to the rules to the Council, which by motion shall approve the rules or amendment and direct their adoption by the DDA Board or disapprove the proposal with directions for revision and resubmission. The rules shall be filed with the Town Clerk and maintained in the records of the Town and shall be subject to public inspection. The DDA Board may provide for certain variances, exceptions and exemptions from the requirements of its rules and regulations. 4.60 Meetings. The DDA Board shall meet in accordance with the rules of procedure governing the Avon DDA and otherwise upon the call of the chairperson or, in the absence of the chair, by the vice chairperson. All meetings shall be held at the offices of the Town, unless otherwise specified, with adequate notice given to all interested parties. 4.64 Authority to Retain Consultants. The DDA Board may request the Town to retain the services of one (1) or more consultants, provided that funds have been appropriated by the Town for said purpose, to advise and assist the DDA Board in performing the functions prescribe in this Title 4. The consultants may be retained to advise the DDA Board on a single project, on a number of projects or on a continuing basis. Town of Avon Downtown Development Authority Plan 2023 Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 1 of 13 DEFINITIONS: Avon Downtown Area means the area designated as the Avon Downtown Development Authority boundary which is a portion of the Avon Central Business District. Benchmark Area means the portion of the original plat of Avon which includes the mixed-use commercial areas east of Lake Street, west of the Village (at Avon) and including the Nottingham Station and commercial areas on the north side of the Avon Road – I-70 Interchange. CARADA means the Consolidated and Restated Annexation and Development Agreement between the Town of Avon and Traer Creek, LLC concerning the development of the Village (at Avon). Community Housing means housing which meets the definition stated in Avon Municipal Code §3.14.020. Comprehensive Plan means the Avon Comprehensive Plan; the West Town Center District Investment Plan; the East Town Center District Plan; the Master Plan for Harry A. Nottingham Park; the 2016 Recreational Trails Master Plan; and the Town of Avon Comprehensive Transportation Plan, any other document adopted as a supplement or sub-area plan of the Avon Comprehensive Plan, as all such documents may be amended from time to time, provided that such amendments or supplemental documents are adopted by ordinance. Council means the Town Council of the Town of Avon. DDA Plan means this Avon Downtown Development Authority Plan adopted in accordance with the DDA Statutes. DDA Statutes means the authority to organize Downtown Development Authorities set forth in C.R.S. §31- 25-801 et. seq. Village (at Avon) means the portion of the Village (at Avon) development, which is situated on the valley floor, including Planning Areas A, B, C, D, E, F, G, H and J. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 2 of 13 1.0 INTRODUCTION 1.1 Statutory Authority. Colorado statutes set forth the authority to organize Downtown Development Authorities in C.R.S. §31-25-801 et. seq. (“DDA Statutes”). This Downtown Development Authority Plan document (“DDA Plan”) is intended to meet the requirements of the Downtown Development Authority statutes to adopt a Plan document. This DDA Plan shall be liberally construed to effect the purposes and objectives set forth in this DDA Plan. C.R.S. §32- 25-801(2) states: The general assembly determines, finds, and declares that because of a number of atypical factors and special conditions concerning downtown development unique to each locality, the rule of strict construction shall have no application to this part 8, but it shall be liberally construed to effect the purposes and objects for which it is intended. 1.2 Purpose. The legislative declaration is set forth in C.R.S. §31-25-801(a) states the purposes as: a. Will serve a public use; b. Will promote the health, safety, prosperity, security, and general welfare of the inhabitants and people of this state; c. Will halt or prevent deterioration of property values or structures within central business districts; d. Will halt or prevent the growth of blighted areas within such districts; and e. Will assist municipalities in the development and redevelopment of such districts and in the overall planning to restore or provide the continuance of the health thereof; and f. Will be of especial benefit to the property within he boundaries of the authority. In particular and more specifically, the purpose of the Avon DDA includes development of Community Housing in the Avon Downtown Area to provide additional workforce housing and to sustain and enhance a critical mass of residents in the Avon Downtown Area necessary to support neighborhood businesses and to support the public infrastructure and public facilities which sustain and enhance the attractiveness of business investment in the Avon Downtown Area. 1.3 Formation Process. The formation process followed the DDA Statutes and included review for comment and recommendation by the Avon Finance Committee and outreach to Eligible Voters, interested members of the public, affected taxing entities, and other stakeholders. 1.4 Eligible Voters. Eligible Voters include residents in the DDA boundaries who are registered to vote in Colorado, property owners and business lessees, as defined in the DDA Statutes. 1.5 Governing Body. The governing body of the DDA is comprised of qualified persons who are appointed by Council and as may be further defined in the Avon Downtown Development Authority Chapter of the Avon Municipal Code. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 3 of 13 1.6 Administration. Administration of the Avon Downtown Development Authority shall be provided by the Town Manager, the Town of Avon staff, and such consultants as may be retained by the Town of Avon. 1.7 Financing. Financing for the Avon Downtown Development Authority shall occur through Tax Increment Financing and debt financing authorized by the DDA Statutes, contributions by the Town of Avon as may occur in the Council’s sole discretion, and such partnership agreements as may be approved by the DDA Board and the Council. 2.0 AVON DOWNTOWN DEVELOPMENT AUTHORITY BOUNDARY 2.1 Statutory Authorization. The DDA Statutes authorize the designation of a Downtown Area within the Central Business District. 2.2 Boundary. The Boundary of the Avon DDA is depicted below and described more specifically in Appendix A. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 4 of 13 2.3 Analysis. The Benchmark Area was originally approved in the late 1970’s and includes the East Town Center and West Town Center commercial areas. The Village (at Avon) was approved in 1998. Interchanges on I-70 were constructed for Avon Road and Post Boulevard. A majority of parcels in the Benchmark Area have been developed, although there are numerous properties which are underdeveloped in relationship to zoning and desired high-density mixed-use development envisioned in the Comprehensive Plan. The Village (at Avon) is partially developed. The DDA Boundary area focuses on the area of Avon’s central business district that zones and envisions mixed-use development with high-density residential, accommodations, neighborhood commercial and regional retail and services. 3.0 EXISTING CONDITIONS 3.1 Description of Area. The DDA Plan area includes 294.1 acres of land centrally located on the valley floor, as properly described in Appendix A . The boundary is bordered to the West by Lake Street and Harry A. Nottingham Park. The South boundary generally follows the Union Pacific Railway except for Nottingham Station, a grouping of underdeveloped commercial properties ripe for redevelopment. The North boundary generally follows Interstate 70, except for Neighborhood Commercial zoned properties at the Avon Road Interchange, and Planning Area J at the Post Boulevard Interchange. Properties within the DDA Plan area are generally undeveloped or underdeveloped based on existing entitlements and Comprehensive Plan documents. Circulation systems are mostly in Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 5 of 13 place. One notable exception is a future “North Road” to parallel East Beaver Creek Boulevard through the undeveloped valley floor in the Village (at Avon). Realignment of Benchmark Road from Roundabout 4 to connect with the Village (at Avon) road system is also a major effort identified the Comprehensive Plan. 3.2 Village (at Avon). a. Street Infrastructure. Major development within the Village (at Avon) between East Town Center and Post Boulevard will require street extensions and a new “North Road” be constructed. All dimensional road standards and triggers for construction are maintained in the Village (at Avon) PUD. b. Development Areas. The DDA Plan Boundary focuses on Planning Areas A, B, C, D, E, and F in the valley floor, and Planning Area J on the north side of Interstate 70. Planning Area A will add significant mixed-use development, effectively extending the Town Center density further east. Planning Area A measures 43 acres and includes entitlements for most residential and commercial land uses, including hospital use and hotel use with increased building heights. Development is anticipated to be dense, with increased site coverage and a more urban development pattern akin to the East and West Town Center areas. Planning Area B is Town owned, centrally located “Community Facility” parcel dependent on adjacent planning and development activities. This 4 acre parcel is expected to accommodate the needs of future residents and guest to the area, and is required to include water storage and features. The boundaries of Planning Area B may be modified through development and significant adjacent infill. Planning Area C is another planned mixed-use area with 24 acres (before North Road construction) of potential development between Interstate 70 and the planned linear park system. Planning Area D includes the balance of mixed-use valley floor development potential, with 14.4 acres. This area is zoned for 18 units per acre and also includes hotel and guest accommodation possibilities, educational uses, and hospital uses. Planning Area E is owned by the Town of Avon and is earmarked for educational uses. Current plans include an early childcare facility with ancillary housing for educators. This planning area is centrally located with adjacency to Post Boulevard. Planning Area F includes the Piedmont apartments on the south half of the site. While commercial uses are permitted, it is anticipated that with additional high density housing will be developed here. Planning Area J currently houses the Eagle County Paramedics facility. A 240 unit hotel and gas station are under construction, with more planned development around Wagon Trail Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 6 of 13 Road and the Interstate 70 Interchange. Uses will be more commercial in nature, however, Community Housing opportunities have been identified in this area. c. Parks and Trails. A linear park (“P1”) and path are planned to stretch from Post Boulevard all the way to Planning Area B. Additionally, a pocket park is located between Home Depot and Wal-Mart. Connectivity of private development to local and regional trail systems will be an integral part of infill development. d. Early Childhood Education. Plans for an Avon-based early childcare education facility are planned for Planning Area E. This facility would be a first of its kind in Avon public-private partnership, including Community Housing for educators on-site. e. Parking Structure. Parking structure(s) development is anticipated, especially in Planning Area A where density and site coverage will necessitate facilities. f. Development Entitlements. The Village (at Avon) PUD and Development Plan contains full vesting until October 20, 2039, with a total of 825,000 sq. ft. of Commercial Uses and 2,400 Dwelling Units. Portions of the Village (at Avon) may develop additional commercial square footage and density. At least 500 of the dwelling units must meet employee housing definitions, comparable to Community Housing definition herein. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 7 of 13 3.3 East Avon. This East Avon area is largely characterized as “suburban” development with mostly 1-2 story buildings surrounded by large surface parking. The lot layout is inconsistent, and street network is inadequate for the planned redevelopment. This area is poised for redevelopment of underutilized parcels. Primary redevelopment will include the realignment of Benchmark Road from Roundabout 4 to the connection with the Village (at Avon), infill Community Housing, and supporting commercial uses in a more walkable layout. A parking facility or multiple smaller facilities will likely replace the expansive surface parking that currently exists. 3.4 West Avon. The West Avon district contains a mix of high-density mixed-use development. Notable infill parcels include Lot B and Lot 3. A Parking Structure will likely be necessitated with planned growth in the area, with proximity to park, gondola, and all commercial uses in the Town Core. Sun Road can be viewed as one of the most underdeveloped set of four “Town Center” zoned parcels. Finishing the Main Street Pedestrian Mall and connecting with Harry A. Nottingham Park has been identified in the Comprehensive Plan as a top priority. 3.5 Nottingham Station. This area contains one story shops and a fast-food operator. Additional development and/or redevelopment is expected given the location to essential services and other guest services, including the Riverfront Gondola. 3.6 Northside Commercial. The Northside area includes two gas stations, a tire/lube shop, and two vacant properties. Neighborhood Commercial (“NC”) Zoning accommodates an influx of Community Housing potential, with other supporting commercial activities. 3.7 Blight Conditions. Avon has identified numerous conditions in the DDA Plan area that meet the character and conditions meeting the definition of Blighted Area per C.R.S. §31-25-802: “Blighted area” means an area within the central business district which, by reason of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, unusual topography, defective or unusual conditions of title rendering the title nonmarketable, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of the central business district, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use. Attachment C to this DDA Plan documents several occurrences of deteriorated structures, inadequate street layout, unsafe intersections, inadequate vehicular and pedestrian access, and faulty lot layouts. 4.0 RELATIONSHIP TO COMPREHENSIVE PLAN. This DDA Plan is intended to promote and support specific projects and related private projects and investment which are compatible with the Comprehensive Plan, and each of the sub-plans of the Comprehensive Plan. The Comprehensive Plan and each of its sub-plans shall be considered, especially the Avon Community Housing Plan. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 8 of 13 5.0 PLAN OBJECTIVES 5.1 Introduction. The DDA Plan is intended to sustain and enhance the long-term commercial health of Downtown Avon by increasing Community Housing and funding public infrastructure and facilities which promote business investment. Mixed-Use developments and integration of Community Housing into the Commercial Core will promote a walkable, pedestrian friendly and transit oriented built environment that will create desirable neighborhoods while implementing climate action strategies. A critical mass of full-time residents will support and sustain neighborhood businesses, which in turn will increase the uniqueness and attractiveness of Avon as a destination for visitors. The combination of commercial and residential uses will further promote development and redevelopment of the entire Downtown as an urban “neighborhood” with retail, business, lodging, residential, civic, cultural and public elements while physically connecting existing uses and improving circulation among multiple forms of transportation. 5.2 Community Housing. Current zoning in Benchmark portion of Downtown Avon allows for redevelopment with an estimated 750-1500 residential units, depending upon the mix of commercial units. Current entitlements in the Village (at Avon) portion of Downtown Avon allows for development with an estimated 800 to 1,400 additional residential units, depending upon the mix of accommodations development. The Avon Community Housing Plan states a goal to maintain full-time residential use in at least 50% of Avon’s residential development. The number of Community Housing residential units in Downtown Avon required to meet this goal in the Avon Community Housing Plan at full build-out may range from 775 to 1,450 total units. Another objective is to provide adequate workforce housing to meet the needs of employers in Avon. The Eagle County Climate Action Collaborative Plan states a goal to construct workforce housing within five miles of job locations. The Town of Avon’s Downtown Area is uniquely within 5 miles of the accommodation and commercial cores of Avon, Beaver Creek/Bachelor Gulch, and Edwards and within nine miles of the Town of Vail’s commercial and accommodation areas. Avon’s Downtown Area is served by the Town of Avon’s fare free bus transit and is centrally located within the Eagle Valley Transportation Authority fare free zone for expanded bus transit. 5.3 Public Infrastructure and Facilities. The development of a high-density, mixed-use urban Downtown Area will require significant investment in public infrastructure and facilities. Public infrastructure investment will be particularly important for parking structures and street realignment associated with redevelopment of East Avon and the Sun Road Sub-Area District. Investment in public facilities which serve an expanding residential population as well as supports Avon’s visitor economy may include expansion of the Avon Recreation Center, development of the Planning Area B (Park and Lake area) in the Village (at Avon), and development of recreational trail connections. Support for early childhood educational facilities will also enhance the attractiveness of the Downtown Area as a desirable place for workforce living. 6.0 POTENTIAL PROJECTS. The potential projects listed in this section is not intended to be an exhaustive, exclusive or definitive list; rather, all viable projects which advance the purpose and objectives of the DDA Plan should be considered for support by the DDA Board. This list provides a short overview of current ideas on projects that may benefit from financial support from a DDA. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 9 of 13 6.1 Community Housing. There is a severe shortage of workforce housing. Community Housing projects are a priority focus of the DDA Plan. 50% of the funding of the DDA revenues over the life of the DDA shall be allocated to support the development of new Community Housing, acquisition of deed restrictions on existing residential stock, or other programs and strategies to increase workforce housing in the Downtown Area. 6.2 Parking Structures. Public parking structures are desired to serve a growing population and increased visitor base. Possible locations for parking structures include the Avon Recreation Center parking lot, Lot B [insert subdivision name], the Sun Road Sub-District Area, East Avon in coordination with redevelopment, and the Village (at Avon) in Planning Area A in coordination with a large scale hotel development. 6.3 Streets and Utilities. Street and utilities projects may include any street and utility extension, or upgrade required for a Community Housing project; realignment of the street route between Round-About 4 and the entrance to the Village (at Avon) adjacent to Chapel Square (comprised of East Benchmark Road, a portion of Beaver Creek Place, and Chapel Place); and, realignment or redevelopment of Sun Road. 6.4 Parks and Trails. The Village (at Avon) includes the dedication of Planning Area B, which is a four acre park property that is the probable location for a small lake as described in the CARADA. Planning Area B is intended to be coordinated and integrated with the development of Planning Area A and the final location is likely to change based on development configuration and block platting for Planning Area A in the Village (at Avon). An interior recreation trail is planned to connect Post Blvd to Planning Area B. 6.5 Public Facilities. Public facilities may include expansion of the Avon Recreation Center and construction of an early childhood education center. 7.0 PROJECT FINANCING 7.1 Public Investment Objective. It is the intent of Council and the DDA Board that the public sector play a significant role in revitalization efforts as a strategic partner. However, experience has proven that a critical component to the success of any revitalization strategy is participation by both the public and private sector. Leveraging of resources will be key as no one entity, either public or private, has sufficient resources alone to sustain a long-term improvement effort. 7.2 Authorization. The DDA Board may approve financing this DDA Plan by any method authorized under the DDA Statutes or any other applicable law, including without limitations, the following: issuance of notes and bonds in an amount sufficient to financing all or part of this DDA Plan; borrowing of funds and creation of indebtedness; advancement and reimbursement agreements; federal or state loans or grants; interest income; annual appropriation agreements; agreements with public or private entities; and loans, advances and grants for any other available sources. The principal, interest, costs and fees on any indebtedness are to be paid for with any lawfully available funds of the Authority. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 10 of 13 7.3 Project Revenues a. Tax Increment Financing. The primary method of financing this DDA Plan is expected to be the use of property tax increments as authorized by the DDA Statutes. The property tax increments will be collected, divided, distributed, utilized and in all other ways administered as set forth in the DDA Statutes. b. Funding Agreements. The Town and DDA Board may enter into agreements with other public bodies and private parties to provide financial assistance in support of development projects consistent with this Plan as may be more fully set forth in the provisions of such agreements. Existing agreements between the Town and private parties that are consistent with this DDA Plan are intended to remain in full force and effect. c. Confluence Metropolitan District, Avon Station Metropolitan District, Village Metropolitan Districts. The Town has entered into an intergovernmental agreement dated ______________, 2023 with Avon Station Metropolitan District, Confluence Metropolitan Districts, and Village Metropolitan Districts (“District IGAs”). Pursuant to the District IGAs, the DDA Board shall remit to the Districts any tax increment receipts resulting from real property taxes and specific ownership taxes from property within the boundaries of the Districts as of the date of the District IGA, other than Lot B of the Avon Station Metropolitan District (as described in the District IGAs), that would otherwise be payable to the Districts, except for any incremental real property taxes or specific ownership taxes generated by an increase in the total number of permitted dwelling unites or commercial square footage in the zoning entitlements existing as of the date of the District IGAs. The Town shall continue to remit such receipts, if any, to the Confluence Metropolitan District and Avon Station Metropolitan Districts until December 31, 2047. [NOTE: This section needs more legal review] 7.4 Financing Mechanisms and Structures. The Plan is designed to provide for the use of tax increment financing as one tool to facilitate investment and reinvestment within the Area. The Authority is committed to making a variety of strategies and mechanisms available which are financial, physical, market and organizational in nature. It is the intent of the Town Council and the Authority to use the tools either independently or in various combinations. Given the obstacles associated with infill development, the Authority recognizes that it is imperative that solutions and resources be put in place that re comprehensive, flexible and creative. Such resources may include, without limitation, special districts and improvement districts approved by the Town Council. 8.0 PROJECT APPROVAL PROCESS. Projects which are proposed to be financed in whole or in part with DDA tax increment financing sources shall be reviewed by the DDA Board to determine if such project advances the purposes and objectives in this DDA Plan. The DDA Board shall conduct such work sessions as are appropriate. Projects be subject to: review and recommendation by the Avon Planning and Zoning Commission as set forth in the Avon Development Code; review, comment and recommendation by the Avon Financing Committee; and review and concurring approval by Council. The DDA Board, Avon Planning and Zoning Commission, Avon Finance Committee and Council shall each conduct a public hearing prior to taking final action or providing a recommendation. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 11 of 13 9.0 PLAN AMENDMENTS 9.1 Process. The process for amendments to the DDA Plan allows parties responsible for implementing this DDA Plan to periodically evaluate its effectiveness and make adjustments to ensure efficiency in implementing the recommended Plan Objectives and DDA Projects. The DDA Plan may be amended at any time. If amended after the lease or sale by the DDA of real property in the DDA Boundary Area, such modification shall be subject to such rights at law or in equity as a lessee or purchaser or his successor in interest may be entitled to assert. The DDA Board or the Avon Town Council may initiate amendments to the DDA Plan. Proposed amendments shall be referred to the Avon Planning and Zoning Commission and the Avon Finance Committee for review, comment, and recommendation. The DDA Board shall consider the comments and recommendations of the Avon Planning and Zoning Commission before taking action on the DDA Plan document. The DDA Board, Avon Planning and Zoning Commission, Avon Finance Committee, and Avon Town Council shall each conduct at least one public hearing before taking action on a proposed amendment to the DDA Plan. 9.2 Content. Amendments to the DDA Plan may include boundary adjustments, changes to the DDA Plan text, updates to information and inclusion of new or updated studies, updates to financing sources and uses, other amendments authorized in the Avon Municipal Code, and other amendments authorized by the DDA Act. 9.3 Review. Each entity which reviews amendments to the DDA Plan may consider change in conditions within the Downtown Development Authority boundary; local, state or national economic changes which may impact the DDA Plan; and whether the proposed amendments to the DDA Plan may improve achieving the purpose of the DDA Plan and implementation of DDA Plan Objectives. 9.4 Adoption. Amendment to the DDA Plan shall be adopted by a Resolution of the DDA Board and the Avon Town Council. 10.0 MISCELLANEOUS 10.1 Cooperation Agreements. For the purposes of implementing this Plan, the Authority may enter into one or more Cooperation Agreements with the Town or other public bodies pursuant to the Act. Such Cooperation Agreements may include, without limitation, agreements regarding the planning or implementation of this Urban Renewal Plan and its projects, as well as programs, public works operations, or activities which the Authority, the Town or such other public body is otherwise authorized by law to undertake, including without limitation, agreements respecting the financing, installation, construction and reconstruction of public improvements, utility line relocation, storm water detention, environmental remediation, landscaping and/or other eligible improvements within the Urban Renewal Area. 10.2 Interpretation. The language in this Urban Renewal Plan shall be interpreted to conform to the Act, and if there is any conflict between the Ac and this Urban Renewal Plan, the provisions of the Act shall control. Avon Downtown Development Authority Plan May 31, 2023 - DRAFT Page 12 of 13 10.3 Severability. If any portion of the Urban Renewal Plan is held to be invalid or unenforceable, such invalidity will not affect the remaining portions of the Urban Renewal Plan. APPENDIX A: Downtown Development Authority Boundary APPENDIX B: Avon Employer Workforce Housing Survey (Results Pending) APPENDIX C: Blight Study/Inventory (2023) APPENDIX A VAIL VALLEY OFFICE 30 Benchmark Road, Suite 216, PO Box 978 Avon, CO 81620 DENVER OFFICE 9618 Brook Hill Lane Lone Tree, CO 80124 970.949.5072 info@inter-mtn.net TOWN OF AVON DDA LAND DESCRIPTION‐NORTH OF I‐70    A parcel of land located in part of Sections 7 and 8, Township 5 South, Range 81 West of  the Sixth Principal Meridian. Also being North of the Interstate 70 right‐of‐way beginning at  the Southernmost point of Tract I, Village at Avon Filing 3 and the West right‐of‐way line of  William J. Post Boulevard.   Thence Northwest along the West line of Tract I and Tract B, Village at Avon Filing 3 to the  Northwest corner of Tract B;  Thence Northeast along the North line of Tract B to the Northwest line of Tract F;  Thence Northeast to the North corner of Tract F and the Swift Gulch right‐of‐way;  Thence Southeast along the South right‐of‐way of Switch Gulch to the southeast corner of  Tract I on the west right‐of‐way line of Post Boulevard;  Thence Northeast across Swift Gulch Road to the Northwest corner of Avon Landing;  Thence Northeast to the Northernmost corner of Block 2, Avon Landing;  Thence southeast to the Northeast corner of Block 3, Avon Landing;  Thence continuing on the North line of Block 3 to the Northeast corner of Block 3;  Thence South along the East line of Avon Landing to the Southeast corner of Block 4, Avon  Landing and a point on the north right‐of‐way line of Interstate 70;  Thence continuing Northwest along the South line of Block 4, Avon Landing and the right‐ of‐way line to the Southwest corner of Block 4 also being the Southeast corner of Lot 2,  Stolport Station Subdivision;  Thence continuing Northwest along the South line of Stolport Station Subdivision to a point  on the South right‐of‐way line of Post Boulevard;  Thence Northwest across Post Boulevard right‐of‐way to the point of beginning.     TOWN OF AVON DDA LAND DESCRIPTION‐SOUTH OF I‐70    A parcel of land being part of Section 7, Township 5 South, Range 81 West and Sections 1,  2, 11, and 12, Township 5 South, Range 82 West of the Sixth Principal Meridian. Also being  South of the Interstate 70 right‐of‐way beginning at the Westernmost corner of Tract G,  Village at Avon Filing 1 on the Southeast right‐of‐way line of Tract A, Post Boulevard, also           TOWN OF AVON DDA LAND DESCRIPTION‐SOUTH OF I‐70 (CONTINUED)    being the most easterly corner of Tract A; Thence Southwest along the Southeast line of  Tract A to the Northernmost corner of Lot 5, Village at Avon Filing 1;  Thence Southwest along the North line of Lot 5 to the North line of the Denver and Rio  Grande Western Railroad right‐of‐way;  Thence West along the North line of the railroad right‐of‐way to the Easternmost point of  Tract D, Village at Avon Filing 1;  Thence Northwest along the North line of Tract D and the South right‐of‐way line of Yoder  Avenue to the intersection with the East right‐of‐way line of Post Boulevard;  Thence Southeast along the East right‐of‐way line of Post Boulevard to the North right‐of‐ way line of the Union Pacific Railroad;    Thence Northwest along the North right‐of‐way line of the Railroad to the Southwest  corner of Lot 1, Village at Avon Filing 1, also being the southeast corner of Chapel Square  Subdivision; thence continuing northwest along the northerly Railroad right of way line to a  point on the southerly boundary line of Tract B‐1 of A Resubdivision of Tract B, Chapel   Square Subdivision at its intersection with the extension of the East boundary line of Lot 2  of Lot 1/2, Nottingham Station Subdivision;  Thence continuing Southwesterly along the East boundary line of Lot 2 and its extension to  the Southerly right‐of‐way line of Hurd Lane;  Thence Northwest along the South right‐of‐way line of Hurd Lane and its extension to a  point on the West right‐of‐way line of Avon Road;  Thence Northwest along the West right‐of‐way line of Avon Road to the Southeast corner  of Avon Town Square Commercial Condominiums on the North right‐of‐way line of the  railroad right‐of‐way;  Thence Northwest along the North right‐of‐way line of the railroad to the East right‐of‐way  line of Lake Street;  Thence Northeast along the East right‐of‐way line of Lake Street to the intersection with  West Beaver Creek Boulevard right‐of‐way;  Thence across Beaver Creek Boulevard to the Southernmost corner of Greenbriar  Condominiums;  Thence Northeast along the East line of Greenbriar Condominiums to the South line of the  Interstate 70 right‐of‐way line.  Thence Southeast along the South line of the Interstate 70 right‐of‐way to the Northeast  corner of Lot 1, Village at Avon Filing 1;  Thence Southeast along the East line of Lot 1 to the North line of Post Boulevard, Tract A,  Village at Avon Filing 1;  Thence Southeast along the North line of Tract A, the North right‐of‐way line of Post  Boulevard to the point of beginning.          2            TOWN OF AVON DDA LAND DESCRIPTION, ADJACENT TO NOTTINGHAM ROAD    A parcel of land being a part of Section 1 and 12, Township 5 South, Range 82 West of the  Sixth Principal Meridian, County of Eagle, State of Colorado.  Beginning at the East corner  of Lot 1, Block 1 of Benchmark at Beaver Creek; thence Northwest along the Southwest  boundary of Block 1 to the West corner of Lot 4;        Thence Northeast along the Northwest boundary of Lot 4 to the North corner of Lot 4, also  being a point on the South boundary line of Nottingham Road;   Thence Southeast along the South boundary line of Nottingham Road to its intersection  with the extension of the Northwest boundary line of Lot 67, of the resubdivision of Lots  67 and 68, Block 1, Benchmark at Beaver Creek;  Thence Northeast across Nottingham Road along the Northwest boundary of Lot 67 and its  extension to the North corner of Lot 67, also being the South boundary of Swift Gulch  Road;   Thence Southeasterly along the South boundary line of Swift Gulch Road to the East corner  of Lot 68 of the resubdivion of Lots 67 and 68, Block 1, Benchmark at Beaver Creek;  Thence Southwest along the Southeast boundary of Lot 68 to the South corner of Lot 68  also a point on the North right‐of‐way boundary line of Interstate Highway 70;   Thence continuing along the North right‐of‐way boundary line of Interstate Highway 70 to  the point of beginning.    3  APPENDIX B Q1. Avon Employer Workforce Housing Questionnaire The Avon Town Council recognizes that the severe shortage of workforce housing is impacting all employers in our community. The Avon Town Council is proposing the formation of a Downtown Development Authority which would create a new source of funds for Community Housing and Public Improvements in the Avon Commercial Core area. No new or increased taxes are proposed. Town of Avon is conducting a survey of employers in Avon to gather data on the shortage of workforce housing and impacts to staffing in order to determine the best housing projects to meet the needs of Avon’s employers. The results of this survey will be included as an appendix to an Avon Downtown Development Authority Plan document. Individual business information provided in this survey will remain confidential as proprietary and financial information under the Colorado Open Records Act. The deadline to complete this survey is June 9th, 2023 Q2. Please list the name of your business. Q3. From the options below, please select the business type that best fits your business. Please select all that apply. Lodging Restaurant Retail Office/Services/Consulting Government/Non-Profit Construction/Landscaping Architecture/Engineering Financing/Accounting/Law Firm Spa/Salon/Hair Care Healthcare/Dental Other (please specify) Q4. On average, how many FULL-TIME employees do you retain? Summer Winter Year Round Q5. On average, how many PART-TIME employees do you retain? Summer Winter Q6. Thinking about this past 2022 SUMMER season, how many vacant positions were you NOT able to fill due to the lack of workforce housing in Avon? Please enter a numerical value. Vacant Positions: Q7. Thinking about this past 2022/2023 WINTER season, how many vacant positions were you NOT able to fill due to the lack of workforce housing in Avon? Please enter a numerical value. Vacant Positions: Q8. At what salary level positions have you had the most trouble filling due to the lack of workforce housing? Please select all that apply. $30K - $39K $40K - $49K $50K - $59K $60K - $69K $70K - $79K $80K - $89K $90K - $99K $100K - $119K $120K - $129K $130K - $139K $140K and over Q9. Please rate how well you Agree or Disagree with the following statements regarding your business operations over the past year. Q10. If opportunities to purchase workforce housing for your employees were available, would you want to learn more about investing in workforce housing? Yes No Q11. In your own words, please describe how the shortage of workforce housing has impacted your business. Q12. In your own words, please describe how the shortage of workforce housing has impacted your business, and whether you think there is a need for more affordable rental or for-sale inventory. APPENDIX C Downtown Development Authority Blight Study / Inventory 2023 This document presents the general conditions for the Avon Downtown Development Authority (“DDA”) Blight Study (“Study”). Community Development observed these conditions in the DDA boundary area in April, 2023. This Study aims to establish the existing conditions of the DDA area currently exhibiting degrading physical, environmental, and social factors. For purposes of this Study, the definition of blight is as follows: “Blighted area” means an area within the central business district which, by reason of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, unusual topography, defective or unusual conditions of title rendering the title nonmarketable, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of the central business district, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use. Blight determination is based upon an area “taken as a whole,” not on a building-by-building basis. Redominance of defective or inadequate street layout Deteriorated or deteriorating structures Obvious indications of disrepair and deterioration to the exterior of a structure include: Primary Elements (exterior walls, visible foundation, roof) Secondary Elements (fascia / soffits, gutters / downspouts, windows / doors, fagade finishes, loading docks, etc.) Ancillary Structures ( detached garages, storage buildings, etc.) The presence of this factor is determined through a combination of both field observation as well as an analysis of the existing transportation network and vehicular and pedestrian circulation patterns. These conditions include: • Inadequate Street Cross - Sections, or Geometries, • Poor or Unsafe Conditions for the Flow of Vehicular Traffic • Poor Provisions or Unsafe Conditions for Pedestrian Flow • Insufficient Roadway Capacity Leading to Congestion of Traffic • Inadequate Emergency Vehicle Access • Poor Vehicular / Pedestrian Access to Buildings or Sites • Poor Internal Vehicular / Pedestrian Circulation • Excessive Curb Cuts / Driveways in Commercial Areas These conditions can affect the adequacy or performance of the transportation system. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. This factor requires an analysis of the parcels as to their potential and usefulness as developable sites. Conditions indicative of the presence of this factor include: • Lots that are Long, Narrow, or Irregularly Shaped • Lots that are Inadequate in Size • Lots with Layouts or Configurations that are Obsolete or Impractical • Lots with Layouts or Configurations that Result in Stagnant, Misused, or • Unused Land Unsanitary or unsafe conditions This factor requires an analysis of the parcels as to their potential and usefulness as developable sites. Conditions indicative of the presence of this factor include: • Inadequate Storm Drainage Systems / Evidence of Standing Water • Open Trash Dumpsters • Severely Cracked, Sloped, Uneven Surfaces, or a Disconnection or a Lack of Pathways for Pedestrians These represent situations in which the safety of individuals, especially pedestrians and children, may be compromised due to environmental and physical conditions considered to be unsanitary or unsafe. Deterioration of site or other improvements Unusual topography Conditions that apply reflect the deterioration of various improvements made on a site other than building structures. These conditions may represent a lack of general maintenance at a site, the physical degradation of specific improvements, or an improvement that was poorly planned or constructed. Overall, the presence of these conditions can reduce a site’ s usefulness and desirability and negatively affect nearby properties. • Neglected Properties or Evidence of General Site Maintenance Problems • Deteriorated Fences, Walls, or Gates • Deterioration of On -Site Parking Surfaces, Curb & Gutter, or Sidewalks • Poor Parking Lot /Driveway Layout The focus of this factor is on the presence of unusual topographical conditions that could make development prohibitive, such as steep slopes or poor load- bearing soils, as well as deficiencies in the public infrastructure system within the Survey Area that could include: • Steep Slopes /Rock Outcroppings / Poor Load - Bearing Soils • Deteriorated Public Infrastructure (street /alley pavement, curb, gutter, sidewalks, street lighting, storm drainage systems) • Lack of Public Infrastructure (same as above) • Presence of Overhead Utilities • Inadequate Fire Protection Facilities / Hydrants Existence of conditions which endanger life or property by fire and other causes Defective or unusual conditions of title rendering the title nonmarketable Certain properties can be difficult to market or redevelop if they have overly restrictive or prohibitive clauses in their deeds or titles, or if they involve an unusually complex or highly divided ownership arrangement. Examples include: • Properties with Disputed or Defective Title • Multiplicity of Ownership Making Assemblages of Land Difficult or Impossible This factor can result from the presence of the following conditions, which include both the deterioration of physical improvements that can lead to dangerous situations as well as the inability for emergency personnel or equipment to provide services to a site: • Old, Wooden Buildings Comprised of Highly Combustible Materials Adjacent to Mature Vegetation • Buildings or Sites Inaccessible to Fire and Emergency Vehicles • Blocked / Poorly Maintained Fire and Emergency Access Routes • Insufficient Fire and Emergency Vehicle Turning Radii • Buildings or Properties not in Compliance with Fire Codes, Building Codes, or Environmental Regulations • Buildings with Deteriorated Elements that Create Unsafe Conditions • Buildings with Inadequate or Improperly Installed Utility Components 970.748.4004 eric@avon.org TO: Honorable Mayor Amy Phillips and Council members FROM: Eric Heil, Town Manager and Patty McKenny, Deputy Town Manager RE: Formation of Downtown Development Authority Update DATE: April 6, 2023 SUMMARY: This report provides an overview of the process for the formation of a Downtown Development Authority (“DDA”) that will occur over the next four months; see Attachment A, dated October 19, 2022, for the initial DDA process report. The Town Council provided direction last fall to include the formation of a Downtown Development Authority as a goal for 2023. This report shall serve as an update and is informational only. No formal action is currently required. Updates will continue to be presented over the next few months. PURPOSE AND GOALS: Downtown Development Authorities intend to alleviate or prevent blight conditions and promote the sound economic growth of a community’s central downtown commercial core. Avon’s workforce’s current extreme housing shortages have directly impacted Avon’s business community and arrested Avon’s businesses’ stability and sound growth. The impacts are widespread to the extent of impacting public services as well. To support and stabilize and promote the solid economic growth of the Avon community, investment in workforce housing and public infrastructure to support a growing community is necessary. The primary purpose of creating a Downtown Development Authority is to provide a new dedicated funding source for Community Housing and additional public infrastructure to support Avon’s growing community over the next several decades. The development of other Community Housing will stabilize the local workforce and the ability of local businesses to fill employment positions. Community Housing development requires basic public infrastructure improvements, such as streets, utilities, and drainage. East Beaver Creek Boulevard in the Village (at Avon) is past its useful life, and the development of Planning Areas A, B, C, D, and J will require additional investment in streets and infrastructure. Redeveloping the Sun Road area and East Avon will require investment in re-aligning streets and utilities. Investment in Community Housing and public infrastructure, facilities, and amenities intends to stabilize the local economy while establishing a sustainable community regarding climate action and greenhouse gas reduction. Specifically, locating workforce housing close to job centers will reduce commuting miles, reinforce the use of mass transit provided by the Eagle Valley Transportation Authority and support new energy efficient and net zero housing construction. All these considerations and goals fit together in a manner necessary to achieve a genuinely sustainable downtown community for the next generation. For these reasons, at least 50% of the tax increment financing revenue source of the Downtown Development Authority shall be dedicated to Community Housing, and the remaining revenues are devoted to public infrastructure, facilities, and amenities in the downtown area as determined by the Downtown Development Authority Board and Council. DOWNTOWN DEVELOPMENT AUTHORITY: A Downtown Development Authority is a statutory local government authority formed to prevent the deterioration of property values and structures, prevent blight conditions, and assist development and redevelopment in the DDA area to promote the continued health of that area. The DDA statutes provide substantial deference to local determinations and interpretations, stating in part in the Legislative Declaration, Page 2 of 3 31-25-801(2) The general assembly determines, finds, and declares that because of several atypical factors and special conditions concerning downtown development unique to each locality, the rule of strict construction shall have no application to this part 8. However, it shall be liberally construed to effect the purposes and objects for which it is intended. A Downtown Development Authority can be organized when the municipal governing body (i.e., Avon Town Council) takes action to adopt an ordinance that refers the question of organization to an election, and a majority of the voting “Qualified electors” vote to approve the DDA. “Qualified electors” means a resident, landowner, or lessee with the proposed DDA boundary area, see Attachment B. FINANCIAL CONSIDERATIONS: A Downtown Development Authority (“DDA”) is similar to an Urban Renewal Authority, with the primary benefit of authorizing tax increment financing within the DDA area. Tax increment financing is the ability to retain the increased property taxes generated from new development, which would otherwise go to the Town of Avon, Eagle County, Eagle County School District, and other taxing jurisdictions in the Town of Avon. DDAs are allowed to impose tax increment financing for 30 years with the ability to extend for two additional 10-year periods. Forming a DDA and imposition of tax increment financing does not require consent or approval of other taxing entities like an Urban Renewal Authority (changes in Urban Renewal Authority law in 2015 require other taxing entities to agree to revenue sharing or submit to mediation). In very rough terms, a commercial hotel property may generate as much as $1,000,000 per year, and a 150-unit residential apartment/condominium may generate $400,000 per year in tax increment financing revenues. See Attachment A (page 4) for the memo from Town Attorney with more information about Sources and Uses for DDA. PROPOSED BOUNDARY: The DDA statutes, as defined by C.R.S. §31-25-801, et seq., authorize designating a portion of the “Central Business District” as the “downtown development area”. The area within the proposed boundaries of the Avon Downtown Development Authority is depicted in Attachment C showing a number of different perspectives of the DDA boundary. The area would traditionally be known as the location of the principal business, commercial, financial, service, and government center of the Town, and has been zoned and used accordingly. Such area is established as being within the “central business district” and “downtown” area of the Town and would be included as part of the ordinance forming the DDA. FORMATION PROCESS: The process for the formation of the DDA is shown below by the identification of certain components towards implementation and associated timelines. There will be updates presented at upcoming council meetings as well. Deliverables Timeline Status Develop Eligible Voter / Stakeholder List (see Attachment B for Eligibility Requirements) April – June Working with Eagle County Assessor’s Office, Eagle County Clerk & Recorder’s Office, and Finance team to obtain lists of property owners, registered voters, and business owners that will make up the Voter List. Page 3 of 3 Deliverables Timeline Status Research & Reports to Complete: Propose boundary of DDA Blight Study Report Financial Analysis DDA Plan (draft) April – June Town of Avon “DDA team” (Town Manager’s Office, ComDev Dept., Legal, and Commfluent Inc.) preparing the reports identified as support documents in the formation of the DDA (via ordinance) and adoption of the DDA plan. Community (Stakeholder) Outreach Draft Fact Sheet for Mailer & Website Use Contact Taxing Entities Finance Committee Meeting May 3 Other outreach meetings as needed April – June Town of Avon DDA team (Town Manager’s Office, ComDev Dept., Legal, and Commfluent Inc.) preparing several outreach platforms to be implemented May & June. Planning & Zoning Review May 2 | Work Session May 16 | Public Hearing June 6 | Public Hearing | Plan Adoption May – June The DDA team will prepare materials and present them to the P&Z for consideration and review. P&Z will consider and take action on the DDA Plan before Town Council consideration. Town Council Review & Action April 25 | Work Session May 9 | Work Session June 13 | 1st Reading Ordinance June 27 | 2nd Reading & Public Hearing Ordinance April - June The DDA team will prepare materials and present them to the Town Council and community for consideration and review. The Town Council will Special Election Proposed Date: August 29, 2023 May – September Special Election date would be set at the same time the ballot question is considered (via ordinance). Town Clerk’s Office is preparing special election calendar and associated election materials and deliverables. POTENTIAL PROJECTS: The proposed primary purpose of the DDA plan is to support the development of Community Housing in the DDA Plan area. DDA revenue streams may also be used for public infrastructure, facilities and amenities within the boundary. A list of potential projects will be included in a draft Downtown Development Authority plan; however, community housing and public parking structures will likely be the most expensive investments at the top of the list. Thank you, Eric ATTACHMENT A: Report on DDA Formation dated October 19, 2022. ATTACHMENT B: Memo about Qualified Electors for DDA dated April 20, 2023 (from Town Attorney). ATTACHMENT C: Proposed “Avon Downtown Development Authority Map” – several versions showing different perspectives of the area. 970.748.4004 eric@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Eric Heil, Town Manager RE: Downtown Development Authority Process DATE: October 19, 2022 SUMMARY: This report provides an overview of the steps and timeframe to form and implement a Downtown Development Authority (“DDA”). If Council supports the formation of a DDA then Staff will proceed with the steps for implementation as outlined in this report. Additional details, background information, stakeholder input and policy direction would occur as an integral part of the process to form a DDA. PURPOSE: The purpose of a DDA is similar but slightly different than Urban Renewal Authorities. The DDA status state the purpose as: (1)The general assembly declares that the organization of downtown development authorities having the purposes and powers provided in this part 8 will serve a public use; will promote the health, safety, prosperity, security, and general welfare of the inhabitants thereof and of the people of this state; will halt or prevent deterioration of property values or structures within central business districts, will halt or prevent the growth of blighted areas within such districts, and will assist municipalities in the development and redevelopment of such districts and in the overall planning to restore or provide for the continuance of the health thereof; and will be of especial benefit to the property within the boundaries of any authority created pursuant to the provisions of this part 8. (2)The general assembly determines, finds, and declares that because of a number of atypical factors and special conditions concerning downtown development unique to each locality, the rule of strict construction shall have no application to this part 8, but it shall be liberally construed to effect the purposes and objects for which it is intended.1 DDA PLAN: The proposed primary purpose of the DDA plan is to develop Community Housing in the DDA Plan area. Related to development of Community Housing is the cost of land acquisition; installation, extension or realignment of roads and utilities; and construction of services and amenities to support an increased population, such as early childhood education, parks and recreation. The “Downtown” is a specifically defined area of the municipality in the “Central Business District”. The Central Business District is defined as “Central business district” means the area in a municipality which is and traditionally has been the location of the principal business, commercial, financial, service, and governmental center, zoned and used accordingly.2 Council has significant legislative discretion in determining the “Central Business District” and portion that is suitable for the DDA Plan area. The DDA Plan area is expected to be refined based on stakeholder input and review of specific DDA Plan goals and strategies. 1 CRS §31-25-801 2 CRS §31-25-802(3) ATTACHMENT A Page 2 of 3 DDA FUNDING: The DDA has the ability to capture the tax increment of increased property taxes for all taxing jurisdictions. DDAs also have the ability impose an additional property tax or sales tax, subject to approval by the Qualified Electors in accordance with a TABOR election. The DDA is proposed for the tax increment funding and increases to the property tax mill levy or sales tax rate is not suggested. Budgeting and forecasting of revenues is speculative because it depends upon the actual construction of new development that increases the assessed valuation of the entire DDA area over the initial baseline assessment. Roughly, a 140 room residential apartment could generate $400,000 per year and a 140+ room hotel (or similarly sized commercial building) could generate as much as $1 million in TIF revenue per year. The DDA would likely exempt the current 15 mill levy for Village Metropolitan District in the Village (at Avon) because that is imposed and pledged to repay bonds of Traer Creek Metropolitan District. There are other terms in the Village (at Avon) development agreement which may present opportunities to reduce Avon’s tax credit obligation to repay debts of Traer Creek Metropolitan District. QUALIFIED ELECTORS: A DDA must be approved by a positive vote of “qualified electors” within the defined DDA area. “Qualified elector” means a resident, a landowner, or a lessee as said terms are defined in this section. Any landowner or lessee which is not a natural person may vote only if it designates by some official action a representative thereof to cast its ballot. This subsection (9) shall not be construed so as to permit any qualified elector to cast more than one vote, even though any person qualified or lawfully designated may be entitled to cast the vote of more than one qualified elector. “Resident” means one who is a citizen of the United States and a resident of the state of Colorado, eighteen years of age or older, who makes his primary dwelling place within the district. Once the DDA entity is formed by a vote of qualified electors, the Avon Town Council refers the draft DDA Plan to the Avon Planning and Zoning Commission who conducts a public hearing and provides a recommendation. Then the Avon Town Council conducts a public hearing and may adopt a DDA Plan by resolution. A draft DDA Plan is proposed to be prepared by December so there is a working document for stakeholder outreach and input. FORMATION PROCESS: 1.Initial data collection, including collection of sample DDA plans and ordinances from other communities [October through December] 2.Draft of DDA plan, prepare draft ordinance and related documents [November and December] 3.Review DDA with Avon Finance Committee on November 9, 2022 4.Stakeholder outreach: Community meetings targeted to residents, property owners and business lessees in the proposed DDA area would be conducted. [January] 5.Revise DDA Plan, Conduct Council Public Hearing, consider ordinance to refer formation of DDA to special election of eligible electors: [February and March] 6.Schedule special election for formation [June 6, 2022] Page 3 of 3 7.The DDA Board appoints the following positions, subject to approval of Avon Council, Director, Treasurer and a Secretary. [June or July] NOTE: these positions would be typically filled by the Town Manager, Finance Director and Town Clerk in a manner similar to the Avon Urban Renewal Authority. 8.DDA Board adopts budget, which is subject to approval by Avon Council. [June or July] 9.DDA Board begins to support and identify projects that implement the DDA plan [June or July]. Any development projects, property acquisition or disposal, or expenditures would be subject to review and approval of the Avon Council. The Avon Town Council establishes the power of the DDA by ordinance and may dissolve the DDA by ordinance.3 Typically, the establishing ordinance would authorize all powers under the DDA statutes and all powers under home rule authority. RECOMMENDATION: I recommend Council give direction to proceed with the formation process as outlined in this report. Thank you, Eric ATTACHMENT A: Karl Hanlon DDA Memorandum 3 CRS §31-25-803 www.mountainlawfirm.com Glenwood Springs – Main Office 201 14th Street, Suite 200 P. O. Drawer 2030 Glenwood Springs, CO 81602 Aspen 323 W. Main Street Suite 301 Aspen, CO 81611 Montrose 1544 Oxbow Drive Suite 224 Montrose, CO 81402 Office: 970.945.2261 Fax: 970.945.7336 *Direct Mail to Glenwood Springs DATE: September 27, 2022 TO: Eric Heil, Avon Town Manager FROM: Karp Neu Hanlon, P.C. RE: Downtown Development Authority Sources and Uses A Downtown Development Authority (“DDA”) is a creature of state statute, with the purposes of promoting the general welfare, halting deterioration and blight, and assisting municipalities with redevelopment. See C.R.S. § 31-25-801 et seq. The DDA is a separate tax-exempt entity from the City, which has only two roles in the DDA’s functioning: 1) appointment of the board, and 2) approval of the budget. The DDA does not have power to assess taxes, but instead must rely on the City to do so and will pull its funds from a separate Town account. The creation of a DDA is subject to voter approval, as are any new taxes levied therefor. Avon for some time has had an Urban Renewal District (URA) which is similar but also different than a DDA. A chart comparing DDAs to URAs is attached which highlights some of the differences between the two types of entities. In reviewing the two statutes there is nothing that prevents both from coexisting over the same area. DDAs have two mechanisms for raising revenue. First is a maximum 5 mill ad valorem levy on properties within the DDA boundary. This is assessed by the City, and subject to approval by the voters. See C.R.S. § 31-25-817. All revenue is held by the municipality for use by the DDA. The second mechanism is Tax Increment Financing (“TIF”), which is a form of public funding that allows for the issuance of municipal bonds to raise money for public improvements. A TIF involves the distribution of existing taxes on assessed valuation and is not a separate tax itself. As explained by the court in Northglenn Urban Renewal Authority v. Reyes, 300 P.3d 984, 986 (Colo. App. 2013)1: [A TIF] is accomplished by first establishing a base amount upon which the various taxing authorities assess and collect their levies. This base amount is determined by assessing the value of the property within the urban renewal area prior to adoption of the urban renewal plan. Thereafter, the property is reassessed in subsequent years for tax purposes in the hopes that the urban renewal plan has increased its value. After all levies are assessed and collected on the subsequent valuation, any incremental increase in the base amount is deemed the result of the 1 While this case involves an Urban Renewal Authority, the TIF concepts for both entities are identical. Compare C.R.S. § 31-25-807(3)(a) and C.R.S. § 31-25-107(9)(a). ATTACHMENT A: DDA Legal Memo Downtown Development Authority Sources and Uses Page 2 PRIVILEGED AND CONFIDENTIAL MEMORANDUM urban redevelopment efforts by the municipality and is distributed to the urban renewal authority. A TIF only lasts for 30 years, after which it may be extended by City Council. The DDA can additionally collect revenues from grants and partnerships. The source of revenues also determines how those funds may be used. Both revenue streams may go towards the financing of public improvements within the DDA boundary, such as façade, landscaping, streetscaping, utilities, and parking improvements. Mill levy revenue can go to a wider variety of additional DDA operating purposes, business incentives, and marketing. On the other hand, TIF revenues go into escrow are used to borrow against for financing downtown improvements. Any excess TIF revenues must go to debt servicing and repayment of bonds for the financing of any plan of development within the DDA. C.R.S. § 31-25-807(3)(a)(II). Only once any indebtedness is fully paid, may TIF revenues go to a general operating account of whatever taxing authority collected the revenue in the first place. DDAs are useful tools to facilitate development within a geographically distinct area. While there are several ways to raise revenue for the DDA, the source of money dictates how it may be used. In no case, however, may that revenue go towards general operations of the sponsoring municipality, unless all indebtedness has been paid and there is a TIF revenue surplus. The Town has several specific questions regarding the use of a DDA and TIF revenues that are addressed below: 1.When can the TIF be implemented? A TIF is implemented through the initial adoption of the plan of development or at any later date by amending the plan of developments. Pursuant to C.R.S. § 31-25-807(3)(a) any plan of development may be modified to include the implementation of a TIF. The statute provides: Notwithstanding any law to the contrary and subject to subsection (3)(a)(IV) of this section, any such plan of development as originally adopted by the board or as later modified pursuant to this part 8 may, after approval by the governing body of the municipality, contain a provision that taxes, if any, levied after the effective date of the approval of such plan of development by said governing body upon taxable property within the boundaries of the plan of development area each year or that municipal sales taxes collected within said area, or both such taxes, by or for the benefit of any public body shall be divided for a period not to exceed thirty years or such longer period as provided for in subsection (3)(a)(IV) of this section after the effective date of approval by said governing body of such a provision[.] ATTACHMENT A: DDA Legal Memo Downtown Development Authority Sources and Uses Page 3 PRIVILEGED AND CONFIDENTIAL MEMORANDUM 2.Can DDA funds can be used for Community Housing, recreation improvements (including park properties in the Village (at Avon), constructing a new post office to lease to USPS to assist with relocation, and early childhood education? Yes. The type of projects anticipated should be included in the Plan of Development and such improvements are contemplated. C.R.S. § 31-25-807(2)(d). 3.Can DDA funds be used for road and utility extensions (which would be used to substitute some of the Town’s tax credit obligations for infrastructure) Yes. The type of projects anticipated should be included in the Plan of Development and such improvements are contemplated. C.R.S. § 31-25-807(2)(d). 4.Can Avon claim that it’s Central Business Core is the valley floor from Lake Street/Avon Recreation Center all the way to Planning Area J where the Wagon Wheel Road cul-du- sac and utility extensions have been installed? While there is no specific case law regarding courts have been generally deferential to both legislative determinations and voter approvals. In the case of a DDA both occur in that the Council will by ordinance establish the boundary it believes is appropriate for the DDA and then that will be approved by the voters. 5.What is the total time period that a TIF can be effective? There is time limit on the TIF of 30 years from the date it is first implemented either in the original plan of development or a modification of that plan with the option of extending for another 20 years. C.R.S. § 31-25-807(3)(a)(IV). During the 20-year extension 50% of the TIF must be paid to the affected taxing entities, id. 6.Can Avon/DDA agree to rebate TIF or waive TIF for some taxing entities, or waive a portion of TIF? Like Fire District and Ambulance District and Village Metro District which is imposing a property tax to raise funds for the Village finances. Within the first 30 years of the TIF Avon is not obligated to share any of the TIF revenues with any other taxing entity. For the additional time period there is an obligation under C.R.S. § 31- 25-807(3)(a) (IV)(B) to pay 50% of the TIF to the other taxing entities. That said, there is nothing in the statute which prevents or prohibits Avon from sharing back, pursuant to an IGA, any of the TIF revenues. 7.Can DDA funds be used for staff? TIF revenues can be used for DDA staff (as can the 5 mills discussed above). Direct payments for the Avon personnel would fall outside the uses identified in the statute. C.R.S. § 31-25-805, § 31- 25-807, and § 31-25-815. ATTACHMENT A: DDA Legal Memo www.mountainlawfirm.com Glenwood Springs – Main Office 201 14th Street, Suite 200 P. O. Drawer 2030 Glenwood Springs, CO 81602 Aspen 323 W. Main Street Suite 301 Aspen, CO 81611 Montrose 1544 Oxbow Drive Suite 224 Montrose, CO 81402 Office: 970.945.2261 Fax: 970.945.7336 *Direct Mail to Glenwood Springs DATE: April 20, 2023 TO: Avon Town Council and Mayor FROM: Karp Neu Hanlon, P.C. RE: Electors Qualified to Vote in the DDA Special Election The organization of a Downtown Development Authority ("DDA") involves a group of electors different than most other elections. The electors qualified to vote in a DDA election are the residents, landowners, and lessees (as those terms are defined in C.R.S. § 31-25-801, et seq.) within the boundaries of the proposed district. A resident must be (a) a citizen of the United States, (b) a resident of the state of Colorado, (c) eighteen years of age or older, (d) a person whose primary dwelling place is within the boundaries of the proposed district, and (e) registered to vote in Colorado. Only those electors with a voter registration address within the boundaries of the proposed district will automatically receive a ballot. If an elector actually resides within the district but is registered to vote at an address outside of the district, the elector must complete a Request for Mail Ballot form in order to receive a ballot. A landowner is (a) an owner in fee of any undivided interest in real property or any improvement permanently affixed thereto within the boundaries of the proposed district, and (b) if a natural person, eighteen years of age or older, or, if an entity, a person designated by the entity to vote on the entity's behalf who is eighteen years of age or older. An owner in fee includes a contract purchaser obligated to pay general taxes, an heir, and a devisee under a will admitted to probate. An owner in fee does not include a contract seller of property where the contract purchaser is deemed to be the owner in fee. Interval or timeshare "owners" are generally not owners in fee. Landowners need not reside within the boundaries of the proposed district. Landowners will automatically be mailed a ballot at the property's mailing address. A lessee is (a) a holder of a leasehold interest in real property within the boundaries of the proposed district, and (b) if a natural person, eighteen years of age or older, or, if an entity, a person designated by the entity to vote on the entity's behalf who is eighteen years of age or older. Here, a leasehold interest does not include a license or mere contract right to use real property, including interval and ATTACHMENT B Downtown Development Authority – Qualified Electors Page 2 timeshare ownership where an "owner's" right to use certain weeks arises by contract or by the purchase of points. Lessees will not automatically receive a ballot. If the lessee is an entity, the lessee must complete a Designation of Elector form for the entity and the lessee's designee must complete a Mail Ballot Request form. If the lessee is an individual, the lessee must complete a Mail Ballot Request form. The DDA election follows the one person-one vote rule where even though a person or entity may be qualified to vote in more than one way, a person may only vote once. For example, if an entity owns multiple properties within the DDA, that entity may only cast one vote through a designated person, and any person designated to vote on behalf of an entity may only cast one vote. By way of example, let's say Sam, via four different entities, owns four properties within the boundaries of the proposed district. Sam also resides in a condo within the boundaries of the proposed district and is a registered voter at that address. As a resident and an active registered voter, Sam will automatically be mailed a ballot to vote as a resident. For each property owned by a separate entity, Sam may designate up to four electors – one for each property. To receive a ballot for those properties, Sam must complete a Designation of Elector form for each entity, and each designated elector must complete a Request for Mail Ballot. In that instance, both forms must be completed to receive a ballot. Sam cannot vote as both a resident and a landowner. By way of another example, let's say Sally owns multiple properties within the boundaries of the proposed district though all of the properties are owned through a single entity. Sally must complete a Designation of Elector form for the entity and the designated elector must complete a Request for Mail Ballot form. Even though Sally's entity owns multiple properties within the boundaries of the proposed district, the entity may only designate one person to vote on the entity's behalf and may only vote once. If Sally, in her individual capacity, qualifies to vote as a resident, she can either vote as a resident or as the designated person to vote on her entity's behalf, but not both. The Legislative Council Staff is the research arm of the Colorado General Assembly. The Legislative Council Staff provides nonpartisan information services and staff support to the Colorado Legislature. Number 17-33 A Legislative Council Staff Publication August 2017 THE IMPACT OF TAX INCREMENT FINANCING ON SCHOOL FINANCE By Marc Carey Public K-12 eduction in Colorado is financed in part by local governments and in part by state government. The school finance formula establishes a statewide total funding level. The difference between this amount and the local share determines the state’s obligation to school finance. The local share is paid primarily from local property taxes. When property taxes are not collected from a specific property, the funding formula requires the state to augment its share of K-12 education funding by the amount of foregone local tax revenue. This issue brief discusses the impact of tax increment financing on the state and local shares of K-12 education funding. What is tax increment financing?Tax increment financing (TIF) is a tax incentive for redevelopment projects in Colorado with the purpose of improving “blighted” properties. Colorado law empowers urban renewal authorities (URAs) and downtown development authorities (DDAs) to use TIF to incentivize redevelopment projects. TIF allows a developer to use sales or property taxes collected from a project to pay expenses or debt related to the project, with the expectation that revitalization of the surrounding area will improve the local economy and increase future tax revenue for local governments. TIF and school finance.By allowing local property tax revenue to be used to cover redevelopment expenses, TIF diverts money away from traditional uses such as funding the local share of K-12 education. Thus, while assessed values are increasing due to the redevelopment, local property tax revenue to school finance may not increase in the short term, and the state may have to “backfill” the difference between the actual local share and what the local share would have been absent the TIF incentive. When is local revenue loss the result of TIF?An important issue in determining the loss of local revenue due to TIF is whether the project would have occurred anyway, independently of the TIF incentive. If the project would have been built at the same location without the TIF incentive, the increase in the state’s obligation can be determined by multiplying the assessed value of the TIF property by the relevant mill levy for the local school district, as the state backfills the lost revenue on a dollar-for-dollar basis. However, to the degree these projects occur only because of the TIF incentive, would not have occurred at some other location in the state, and did not divert sales from other locations in the state, the loss of local revenue, and thus the increase in the state share for school finance, would be smaller. TIF and TABOR. Article X, Section 20 of the Colorado Constitution (TABOR) imposes limits on the growth of property tax revenue for all school districts. For a district at its property tax revenue limit, additional assessed value from new development results in a lower mill levy. Currently, four school districts – Cherry Creek, Colorado Springs, Harrison, and Steamboat Springs – are in this position. For these four districts, the TIF revenue loss may mean that the district’s mill levy for school finance drops as a result of the assessed value increase, but not as much as it would have absent the TIF. Colorado Legislative Council Staff ISSUE BRIEF Room 029, State Capitol, Denver, CO 80203-1784 •303-866-3521 •(FAX) 303-866-3855 http://leg.colorado.gov/lcs The impact of TIF on the mill levy depends on the relative magnitude of the TIF to the increase in assessed value. In FY 2016-17, the mill levy for three of these four districts did not fall as much as it would have otherwise. TIF impacts and the budget stabilization factor. During the 2010 legislative session, the General Assembly created a budget stabilization factor to reduce the state’s school finance obligation after revenue had fallen during the recession.1 This factor reduces the overall funding level for most school districts by a proportional amount. By reducing the overall funding obligation for each district, the budget stabilization factor also reduces the state’s contribution to school finance. Since the implementation of this factor, K-12 eduction is funded to a level selected by the General Assembly. In FY 2017-18, the value of the budget stabilization factor was set at $828.3 million, which reduced each school district’s total funding by 11.10 percent. How has TIF reduced the local share historically?Since the implementation of the budget stabilization factor through FY 2016-17, the number of districts employing a TIF incentive and the total impact on both the local and state shares from TIF has grown. Specifically, the number of districts employing a TIF incentive has increased from 34 to 41. Concurrently, the potential reduction in the local share from TIF has grown from nearly $41 million to just over $59 million, while the increase in the state’s obligation has grown from nearly $37 million to just over $52 million. The difference in these totals is the impact of the budget stabilization factor established by the General Assembly in those years. Figure 1 presents these totals over this historical time period. The dotted line indicates the number of districts employing a TIF incentive, while the bars show the maximum reduction in local share that resulted from TIF on a statewide basis. The blue portion 1House Bill 10-1369. represents the actual increase in the state’s obligation that resulted from TIF while the gold portion represents the reduction in the state’s obligation due to the budget stabilization factor. The gold portions were calculated by applying the established budget stabilization factor to the reduction in local share from TIF. Figure 1 Impact of TIF on Local and State Share Source: Colorado Department of Education. Which districts use TIF?Figure 2 shows the geographic distribution of the school districts where TIF is employed. The shading represents the estimated increase in the state’s K-12 funding obligation because of TIF. The largest increases are in school districts along the Front Range, and in mountain resort communities. Denver has the largest increase at nearly $26 million, followed by Jefferson County at nearly $5 million. Figure 2 Colorado School Districts Employing TIF Source: Colorado Department of Education. $0 $10 $20 $30 $40 $50 $60 $70 0 5 10 15 20 25 30 35 40 45 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 Mi l l i o n s Impact of Budget Stabilization Factor on State Share Increase Actual Increase in State Share from TIF Districts Maximum Loss of Local Share from TIFNumber of Districts with TIF 970-748-4023 jskinner@avon.org Page 1 of 12 TO: Honorable Mayor Amy Phillips and Council Members FROM: Jena Skinner, AICP, Senior Planner RE: MJR22002 Major Development Plan; Development Bonus Request - PUBLIC HEARING DATE: June 13, 2023 PROJECT TYPE: Major Development Plan and Development Bonus PUBLIC HEARING: Required LEGAL DESCRIPTION: Lot 3, Mountain Vista Resort ADDRESS: 140 W Beaver Creek Blvd ZONING: Town Center (TC) STAFF REPORT OVERVIEW: This staff report contains an application (“Application”) for consideration by the Town Council (“Council”), which is a Major Development Plan (“MJR”) with Design Review for a 158-key hotel complete with one level of below-grade, valet-operated structured parking for patrons that uses vehicle stackers. Located within the Town Core, this project features a ground-level lobby, accessory restaurant, bar, hotel support spaces, and 4-levels of hotel guestrooms creating an infill project of 5 levels above grade. The overall height of the building is approximately 74’ (73’-9”), in conformance with the allowed building height permitted within the Town Center zone district. On the recommendation of the Town of Avon and to assist with the current housing shortage challenges, the project will include two (2) employee workforce housing units reserved for hotel staff located on the ground floor. Johann Duran-Hunt of the Beck Group (“Applicant”) is representing Lot 3 Mountain Vista, LLC (“Owner”), who is pursuing the development of the Property and MJR Application. Secondary to this application, the Applicants are also pursuing the first ever application for a Development Bonus, which will be evaluated by the Town Council as this project moves forward. The hotel will be constructed in one (1) phase, as is typical for a development only necessitating a building permit. Actual construction will include site clearing; garage, foundation, and drainage improvement installation, with the vertical to follow suit. Lot 3 was created as part of the Mountain Vista Resort Subdivision, or as it is more familiar, the Sheraton Mountain Vista (development). Created in 2001 and more recently updated in 2020 by plat, Lot 3 is directly contiguous to the Sheraton Mountain Vista property (see image, next page). The existing bus stop for the Sheraton on W Beaver Creek Blvd will remain in the same location. DEVELOPMENT BONUS: As part of this infill development, it will be necessary for the Applicants to maximize development on this linear site to the greatest extent possible for this project to pencil out. While largely in compliance with the AMC standards of design and development, two (2) elements will need to flex to make this project work: onsite parking space numbers (they are currently offering less defined spaces than required), and encroachment into setbacks (a portion of the building on the south and west/Sheraton side goes into the setbacks. The Development Bonus will be evaluated, and action taken by the Town Council in addition to the MJR. Should the Town Council support the requested Development Bonus, the approval will be memorialized through a Record of Decision. PZC REVIEW: The proposed Subdivision Preliminary Plan and Final Plat application was examined by PZC on April 18, 2023. The PZC was generally in favor of the layout and design of the projects; however, wished to convey to the Town Council their concerns for the pedestrian connection on the south end of the project. For the Development Bonus, they felt the setback variations were acceptable as the largest 970-748-4023 jskinner@avon.org Page 2 of 12 encroachment would be underground and on the second level (please see Staff Report section “Development Bonus” for more discussion regarding setbacks). The PZC recommended approval of the Major Development Plan (MJR22002) review that included design analysis of building materials, the landscaping plan, building heights, lighting and layout of the hotel. Staff has attached design plans to this report for what is being requested with this application. PROPERTY DESCRIPTION: The subject property is one of the few vacant lots left in Town Center, slated for development. Originally part of the retired PUD created by the Sheraton Mountain Vista Resort development, this property was rezoned by the Town to Town Center. This property has been used as a pedestrian pathway and perceived as a pocket park for many years. As such, the COUNCIL Zone District standards as found within the Avon Municipal Code will govern the design of this project. PROCESS: Major Development Review applications are reviewed by Planning and Zoning Commission. For this project, Town Council will also review this application as required by Section 7.16.080(e), which requires Town Council approval for development within the Town Core. Additionally, Town Council will evaluate the Development Bonus request, which is also necessary for this project. Planning and Zoning Commission has provided a recommendation of approval with conditions to Town Council for this project. Property Address: 0140 W Beaver Creek Blvd. Property Zoning: Town Center 970-748-4023 jskinner@avon.org Page 3 of 12 PUBLIC NOTIFICATION & COMMENTS: Notice of the public hearing was published in the Vail Daily in accordance with Sec. 7.16.020(d) of the Avon Development Code (ADC). Mailed notice is not required for this application. PLANNING ANALYSIS Lot Coverage and Setbacks: This project achieves conformance with lot coverage limitations. There are minimal encroachments underground, and on levels 2-5, but none on the ground level. Table 7.20-9 Dimensions for the Town Center District Min. Lot Size (acres or sq. ft.) Min. Lot Width (feet) Max. Lot Coverage (%) Min. Landscape Area (%) Min. Front Setback (feet) Min. Side Setback (feet) Min. Rear Setback (feet) Max. Building Height (feet) n/a n/a 50 20 0 [1, 4] 7.5 [2] 10 [3] 80 [1] Infill development shall match the smallest setback of existing, adjacent structures. [2] COUNCIL abutting a residential district shall match the side yard setback standards of that district. (N/A) [3] When abutting a public street, alley or public right-of-way. The rear setback for COUNCIL abutting a residential district shall be 20 feet, regardless of the location of any street, alley or ROW. (N/A) [4] Nonresidential development that incorporates public space such as a plaza or courtyard into the building design may increase the front setback by up to 20 feet to accommodate that area up to 40% of the front building line. (N/A) Project Development Summary: AMC PROVIDED Lot Sized in square feet and acres N/a 47,916 SF/ 1.1 ACRES Setbacks: North (West Beaver Creek Road) - FRONT 0’ 0+ – 10+ FT East (Sheraton) - SIDE 7.5’ *Min. 3.5+ FT South (Town Hall) - SIDE 7.5’ *Min. 3.5+ FT West (Mikaela Way) - REAR 10’ Min 7.5+ FT Building Height: Feet Max: 80’ 73'-9" FT Story N/a 5 Site Coverage (Primary and Accessory Structures) 50% 46% or 22,010 SF STAFF ANALYSIS & REPORT PZC PUBLIC HEARING RECOMMENDATION 4/18/2023 TOWN COUNCIL PUBLIC HEARING 5/13/2023 TOWN COUNCIL RECORD OF DECISION 970-748-4023 jskinner@avon.org Page 4 of 12 Exhibit: Proposed Development Bonus Encroachments *Using the Development Bonus ability will provide relief from the setbacks requirements for this project. Staff supports this request. Use: Pursuant to Section 7.24.010 Table Of Allowed Uses, “Accommodation” is a permitted use within the Town Center Zoning. Inclusionary Zoning: The Application is not subject to Employee Housing mitigation standards outlined in Avon Development Code Section 7.20.100, as this lot was once included and evaluated for this requirement as part of the Sheraton Mountain Vista Resort development. As the original project provided many onsite employee housing units, Lot 3 is not required to offer additional units. Knowing the difficulty of finding qualified employees in our area, Staff suggested the Applicants consider providing onsite units regardless of any fulfilled requirements. Also recognizing this need, the Applicants responded favorably to this suggestion and will provide two (2) dedicated employee housing units on Level 1 to support this business directly. Building Height: The maximum building height permitted for this property is 80 feet, and the designs adhere to this limitation. The height must be verified during the building process with foundation and framing Improvement Location Certificates (ILC). Parking: The proposed parking garage will be able to accommodate the zoning requirements for parking with one vehicle per accommodation unit; however, not through conventional means. The Applicants propose lowering the number of dedicated parking spaces through a valet-parking system. As this is a unique parking management method (not recognized in the AMC), Staff requested additional information supporting this use and validating the Applicant’s proposed design. 970-748-4023 jskinner@avon.org Page 5 of 12 In response to this request, the Applicant is proposing a valet parking system which allows them to establish and use the number of parking space presented (see attached parking study). Per the Applicant: As described in previous conversations, ownership has several similar hotel properties in operation with parking spaces provided less than one space per guestroom and still has excess parking spaces available. Because this property is planned to be a valet-only parking operation, we have engaged the parking valet service provider Propark Mobility to assist with a valet parking plan at maximum capacity. Please see attached letter and plans that clarify with valet operation that not only is 1 space per guestroom achievable, but at max operation, we can park in excess of 1 space per guestroom. As mentioned above, the project includes valet/garage parking that expects to meet the proposed formula for onsite parking; however, they are “short” actual parking spaces per the required code (by 44 spaces). The issue is that while the proposed layout is short physical, delineated parking spaces, using a valet system that double parks vehicles within the garage, they conform to the AMC requirement of 1 vehicle per accommodation unit. The Development Bonus is necessary for flexing the parking requirement because the AMC does not recognize the use of a valet-style parking management system; the Applicants are requesting relief through the Development Bonus provisions for the proposed 114 parking space allocation versus offering 158 physical spaces. During the Staff’s review of this project, we looked at our code requirements and that of Vail, also considered a town with significant hospitality uses (Vail and Avon being the top hospitality towns within Eagle County), along with the requirements of Beaver Creek and Breckenridge. The Town of Vail standards require 0.7 spaces per accommodation unit. When this requirement is applied, the need would be 111 parking spaces, which aligns with what the Applicants have proposed. Beaver Creek requires 0.5 spaces per unit, while Breck requires 1.1. The variations in parking requirements indicate to Staff that parking is specific to location within each town or development. When coupled with other factors like Avon’s walkability factor, access to amenities (ski resorts), public transportation, the availability of private shuttles/taxis/Uber drivers, and the upcoming RTA bus service between Vail and Avon, Staff does not disagree that a reduction in actual parking spaces using the proposed valet parking management system is supportable for this project. 4-Sided Design: The side and rear elevations of all structures include equal care and quality as compared to the front of the buildings. Staff is not concerned with the hotel not meeting 4-sided design requirements. Compatible Design: The design of this hotel is akin to other resort designs including an enclosed pool area and exterior patios; very similar to the neighboring Sheraton. Staff feel this design will meet the expectations of guests. 970-748-4023 jskinner@avon.org Page 6 of 12 Scale and Massing: Based on the design of the building and it’s use of articulated facades and roof lines, coupled with the close compatibility and design of the adjacent Sheraton, Staff feels that stepping this building back in relation to the surrounding development, is not necessary given the distance from W Beaver Creek Blvd. on the north, and the separation from the Sheraton on the west. There is no justification for requiring terracing given the size and mass of this proposed hotel. Snow Storage: Snow storage will be nil, as most of the exterior surface areas will be heated. The goal for offsite snow removal will be to utilize the heated areas to “remove” snow from contiguous/existing sidewalks. DESIGN STANDARDS ANALYSIS: GENERAL Landscaping: Landscape plans are included in the attached packet. The landscape plan meets the minimum requirements and utilizes drip for all disturbed areas, which is supported by the recently updated landscaping requirements. Fences: Section 7.28.080(2) has specific fencing requirements that require, “…architectural compatibility with the style, materials and colors of the principal buildings on the same lot.” Onsite perimeter fencing will be used, as is typical for a resort hotel, to secure and define the resort boundary. The fence and all handrails etc., shall be decorative metal, a material supported by this section. Building Design, Building Materials and Colors: The proposed materials include a combination of rock veneer accents, square metal panels, composite paneling (masonry), and wood-look siding/trim, with timber and other structural accents. Avon Development Code Section 7.28.090(c)(3), Building Materials, requires the use of “high quality, durable building materials”, and “preferred materials reflect the Town’s sub-alpine character such as native stone, wood siding, masonry or timbers.” All of these materials are considered with this design, and Staff feels this design is compatible with other buildings in the vicinity. The colors meet Light Reflective Value (LRV) standards and are all earth tone. These materials are very similar to those used at Frontgate, the Westin, and the Wyndham. See attached renderings - page 23 of 30 of the Applicant materials. The PZC at the April 18th, 2023, meeting requested the Applicants provide a materials board, similar to what Frontgate was also required to provide. This has been captured as a condition of this report. Roof Material and Pitch: The roof material and pitch were reviewed for compliance with Sec. 7.28.090(c) (4) Roofs. While Staff feels the roof design meets the intention of this section, there is a secondary provision in Section 7.28.090(j)(ix) that discourages flatter roofs. The proposed metal roof (eaves) at the street level appears to be slightly sloping for drainage, but not pitched to the degree that pedestrians are under the threat of having snow drop or slide onto the sidewalk. On the top level, the roof is “articulated” or broken up using architectural accents that break up both the building façade, extending beyond the roofline. As such, the proposed design is not singular or monotonous, and provides an acceptable visual appeal overall. Exterior Lighting: The exterior light fixture selected for the project is predominantly down cast, modern fixture style and in compliance with the Outdoor Lighting Ordinance and Section 15.30.040. All wall mount lights consist of full cutoff fixture or downcast fixtures engineered to minimize light glare upward into the 970-748-4023 jskinner@avon.org Page 7 of 12 night sky. Around the pool area, there are several ground mounted decorative lights in and around the proposed landscaping boulders. These will have to be very carefully placed to ensure safety and minimize glare from those looking down on the site from higher elevations. The only concern to Staff is the interior garage lights and any corridor lighting that may be seen externally through corridor windows. Currently, the internal garage lights (see below) are not downcast, and this light may spill out or cause glare to neighboring property to the east. Staff recommends this be a consideration for the Applicant. All windows that are lit from corridor lighting need to be glazed or tinted to prevent glare. The Applicant lighting plan and full fixture inventory can be found on pages 24-30 of the attachment. 7.28.090(J) MIXED-USE AND NONRESIDENTIAL DESIGN STANDARDS Building Layout and Design: The design and layout of this structure are similar in their design to that of the Westin and the Sheraton. Shared spaces are dedicated/limited to hotel guests. The design of this structure generally conforms to Section 7.28.090(j)(1) Purpose; however, as this project limits pedestrian connections, it only partially embraces the expectations of the AMC and design standards for a nonresidential (commercial) project. Ideally, this project would replace the connections that Avon has been accustomed to over the years by - providing a pedestrian pathway from W Beaver Creek Blvd through the site to Town Hall or the pedestrian mall. However, this site is relatively linear and narrow. Lot 3 also must utilize shared access with Lot B along the entirety of the east property line, making a separated pathway difficult between this project and Lot B and the Avon Center. While Patrons may exit the site onto Mikaela Way from the pool area, having this as the only exit on the south side creates a much longer travel route for people heading towards Lettuce Shed Lane and the Transportation Center. As designed, pedestrians must travel west and around Town Hall to get to public transportation or the Westin and gondola to Beaver Creek to the east, an important amenity. While Staff believes that the scale is appropriate and is compatible with the neighboring Sheraton and with the provisions of the design section (outside of minimum parking standards and setbacks, to be considered acceptable via the Development Bonus application), according to Section 7.28.090(j)(4), Building design shall be appropriate to the site and a positive element in the architectural character of Avon. Without prescribing a specific architectural style or organization, buildings should provide a sense of proportion and visual balance. New development in Town Core shall maintain a high interaction between pedestrians and the activities inside the buildings at ground level. Staff recommends that exits onto neighboring properties on all sides of the building are provided for safety reasons (egress in an emergency) and access to the rec center. Staff recommends that the Applicants provide a southern, onsite connection from Lot 3 to the Town Hall property at a minimum. This direct connection avoids vehicle-pedestrian conflicts along the access drive on the east side. It creates the shortest path to the pedestrian mall going east- an added benefit for visitors. For this reason, the proposed pedestrian connection on Lot B is not sufficient in its design, as presented (see attachment). Relying on Lot B (for which there is no entitlement) for this pathway does not work as a proposed pedestrian linkage. While Staff understands there are significant grade challenges between the Town Hall site and Lot 3, a direct connection to the Town Hall Site may be necessary. Staff recommends a collaborative review of the two properties transpire. 970-748-4023 jskinner@avon.org Page 8 of 12 Storefronts and Pedestrian Entrances. The front of this building is partially obscured by the existing bus stop, rendering the majority of this frontage as not conducive for retail. Areas around the bus stop and along the remaining building frontage will be landscaped. As the actual doorway entrance to the project is on the east side of this narrow building frontage, windows will break up the first level of the structure. MAJOR DEVELOPMENT PLAN - CRITERIA: § 7.16.080(g), Development Plan 1. Evidence of substantial compliance with the purpose of the Development Code as specified in §7.04.030, Purposes; Staff Response: The application generally complies with the applicable purpose statements outlined in the Development Code. Purpose (l) states, “Promote architectural design which is compatible, functional, practical and complimentary checking to Avon's sub-alpine environment”. The “mountain modern aesthetic” architecture is compatible with other hotel developments like the Westin and the Wyndham that use similar materials like stone, wood-like siding, as well as metal and timber accents. 2. The design conforms with the Avon Comprehensive Plan and other applicable, adopted plan documents; Staff Response: The site is located in the Town Core District (District 1 of the Comprehensive Plan), which states, “The Town Center District serves as the heart of the community. A mix of lodging, residential, government services, civic facilities, and commercial uses complement social, cultural, political, and recreational gatherings in the District. It provides a diversity of land uses in vertically mixed-use buildings to be the common ground between full-time residents, part-time residents, and destination guests. The Town Center District will continue as the primary focus for mixed use, pedestrian-oriented residential and lodging development within the Town. The size of the parcels provides an opportunity for a variety of redevelopment opportunities. Avon should encourage redevelopment opportunities when they provide community benefit, improve street patterns, and create more direct pedestrian walkways and bike paths.” Bus Stop This view looks north from Town Hall. Lot B would be to the right. You can see the grade changes between grade and the first level. 970-748-4023 jskinner@avon.org Page 9 of 12 While the planning principles listed for District 1 target a mix of residential and lodging, staff still has a lingering concern regarding the sufficiency of the proposed pedestrian connections as part of this use. While there will be opportunities for connections through Lot B, the timing on that is unknown; currently it is not pedestrian friendly and is a large parking lot. Additionally, other adopted plans like the 2015 Urban Renewal Area Plan and the proposed La Zona plan also anticipates pedestrian connections associated with new development in this area. The use itself (accommodation), along with the proposed architectural design is compatible within the Avon Town Core, and this development meets the intention of the Comprehensive Plan. Staff feels there is still an opportunity to work with the Applicants and resolve the pedestrian issue as the project moves forward and as such, should not hold up this application. 3. Consistency with any previously approved and not revoked subdivision plat, planned development, or any other precedent plan or land use approval for the property as applicable; Staff Response: The Application reflects the intention of the Mountain Vista Subdivision. This project will be implementing the intended shared access with Lot B and is offering an additional 2-employee housing units regardless that Lot 3 is not required to offer onsite employee housing per the previous approval. As such, Staff feels that this project is consistent with the intention of the original approvals. 4. Compliance with all applicable development and design standards set forth in this Code, including but not limited to the provisions in Chapter 7.20, Zone Districts and Official Zoning Map, Chapter 7.24, Use Regulations, and Chapter 7.28, Development Standards; Staff Response: In using the Development Bonus provisions, the application demonstrates compliance with Chapter 7.20, Zone Districts and all applicable use standards from Chapter 7.24. 5. That the development can be adequately served by city services including but not limited to roads, water, wastewater, fire protection, and emergency medical services; and Staff Response: The Engineering Department is working on all technical aspects of this project with the Applicants. Water has been approved for this site as part of the Mountain Vista Resort Development Agreement. 6. The development design conforms with the character of the surrounding community; or, where redevelopment is anticipated, relates the development to the character of Avon as a whole. Staff Response: Community character refers to the distinct identity of a place; the collective impression a neighborhood or town makes on residents and visitors. The Property is located in the Town Core, where developments like this hotel, are appropriate. The overall character of this development is consistent with other architectural statements of similar developments in incorporating articulated building facades, and other design elements like finished building materials, height, and intensity of use. 970-748-4023 jskinner@avon.org Page 10 of 12 GENERAL REVIEW CRITERIA: §7.16.010(f)(1), General Criteria Criteria is applicable to all development applications: (1) Review Criteria. The reviewing authority shall be the Director when the Director has the authority to administratively approve a development application. The reviewing authority shall be the PZC and/or Town Council for all development applications which are subject to public hearing. The reviewing authority shall review development applications for compliance with all relevant standards and criteria as set forth in the specific procedures for the particular application in this Development Code, as well as the following general criteria which shall apply to all development applications: (i) The development application is complete; (ii) The development application provides sufficient information to allow the reviewing authority to determine that the development application complies with the relevant review criteria; (iii) The development application complies with the goals and policies of the Avon Comprehensive Plan; and (iv) The demand for public services or infrastructure exceeding current capacity is mitigated by the development application. Staff Response: This application is complete. Staff believes sufficient information exists to allow both the Town Council to analyze this application using the review criteria as found within the AMC. Staff finds that this application complies with the Avon Comprehensive Plan, and this project will not impact demands for public services or infrastructure. DEVELOPMENT BONUS CRITERIA § 7.16.170(a) Development Bonus Review Criteria Development bonus means the approval of development project which differs from the minimum or maximum zoning as a means to provide an incentive for a development project that provides one or more desired public benefits described in this Section. (1) Impacts do not outweigh benefits. External impacts of requested development bonuses on the public, adjacent property owners, or the Avon community do not outweigh the public benefits. Staff Response: In approving the requested deviations for the proposed setback standards, there will be no noticeable impact on neighboring properties. Due to the narrowness of the site, there is no room for onsite parking without the use of an integrated parking garage. Permitting the maximization of developable area maximizes the economic return for the hotel, which allows them the ability to include underground parking and not need to utilize or compete with public, on street parking – especially when events are happening at Nottingham Park. (2) Mitigation of impacts. If impacts are presented by the requested development bonus, they should be mitigated to the extent practicable. Town may require an analysis and may require mitigation of the impacts on all public facilities, infrastructure, and services which serve the property, including but not limited to public infrastructure, streets, additional water rights required to serve the development, fire protection, ambulance services, transit, parks, and recreation. Conditions to granting a development bonus may be necessary to ensure harmony with the community. 970-748-4023 jskinner@avon.org Page 11 of 12 Staff Response: The PZC was concerned that the Applicant was not providing sufficient public improvements for the requested Development Bonus. The PZC felt that additional thought and design should be applied to pedestrian improvements from this site to the pedestrian mall. While there are internal pedestrian pathways proposed, no offsite improvements are being offered by the Applicant; however, they are in agreement that a pedestrian connection would be valuable to their proposed use. As such, Staff recommends that the Town Council direct Staff to reevaluate how the Town Hall property and Lot 3 integrate. This is especially important as currently there are Town improvements that encroach on their property. This encroachment will have to be reconciled should this project get approval. Staff considers this as an opportunity for Council to become involved in how our building and property integrate with this infill development. The same will also be important should the neighboring Lot B of the Avon Center be redeveloped. (3) Location and design. The location and design of any contribution towards public parking, transit, pedestrian enhancement, streetscape improvement, or civic facilities shall take into consideration functionality, current and projected demand, and long-term maintenance and operation costs, and shall include such legal documents as are deemed necessary and acceptable to the Town. Staff Response: Many of the suggested opportunities in this criterium would not apply for the Applicant, as this site is not directly adjacent to Nottingham Park or other civic-oriented facilities outside of being a neighbor to Town Hall. This project is being analyzed as a potential economic addition for Avon. (b) Zoning and Development Standards. Density bonuses may be approved for the following zoning and development standards: (1) Parking. The minimum parking requirements may be reduced. (2) Building Height. The maximum building height may be exceeded. (3) Landscape Area. The minimum landscape area may be reduced. (4) Density. The maximum density may be exceeded. (5) Setback. The minimum setbacks may be reduced. (6) Lot Coverage. The maximum lot coverage may be exceeded. Staff Response: The request for a Development Bonus centers on setbacks; however, the proposed parking design is unique in how the Development Bonus is being applied to this project. To summarize: the Applicants are proposing a valet parking system where, as designed, they can meet Avon’s minimum parking standard. This project is unique in that they are not able to provide the required number of physical parking spaces as is identified in the AMC , and use of the valet-system/vertical parking lifts are not recognized nor available as an alternative in the AMC. By using stacked or vertical parking lifts and then double parking vehicles in front of these lifts, the number of cars parked meets code. This parking arrangement will become a condition of approval in order to satisfy parking requirements, unless Town Council agrees to decrease the number of required spaces to meet the physical space requirement (as a Development Bonus) regardless of a valet system. All other development standards have been satisfied with this application. 970-748-4023 jskinner@avon.org Page 12 of 12 OPTIONS: COUNCIL has the following options: •Approve the Application, incorporating the findings and conditions as outlined below; •Approve the Application, with modified findings and conditions; •Continue the Application to future meeting pending additional details or studies; or, •Deny the Application after formulating justifiable findings. RECOMMENDED MOTION: “I move the Town Council Approve Case #MJR22002, an application for Major Development Plan with a request for a Development Bonus for 0140 W Beaver Creek Road (Lot 3, Mountain Vista Resort), based on Staff’s findings and including conditions outlined in Staff’s report.” Conditions: 1.ILCs are required to confirm building height and improvement installation throughout the construction process. 2.Engineering approval for the site access, snow storage, and drainage shall be required prior to the issuance of a building permit. 3.The Applicant will continue to coordinate with Staff in looking at pedestrian connections from the subject property and Town Hall property or to the pedestrian mall through Lot B. 4.Lights in the recessed lighting fixtures shall not create a glare or nuisance from neighboring property owners. Lower wattages or diffusers are required for these fixtures if glare is detectable. Further, all windows in lit corridors must be glazed or tinted to prevent glare or any light being seen from neighboring properties that may be considered nuisance lighting. 5.A physical materials “board” shall be reviewed and approved by PZC before completion of framing. 6.The valet parking management system proposed by the Applicant shall be an operational requirement for this development. Modifying this parking system shall first require approval by the PZC before any operational changes occur, which either eliminates the use of a valet parking system and or reduces the amount of parking that can be accommodated onsite. ATTACHMENTS: Attachment A: Application Schematic Design Plans & Parking Study Attachment B: Draft Development Agreement Attachment C: Draft Parking Covenant ATTACHMENT A PARKING PLAN Prepared by: Han Chau, Regional Vice President Stonebridge Development Companies AVON HOTEL Partnership with Stonebridge Companies & Propark Mobility March 06, 2023 Bill Martinic Vice President of Development Stonebridge Development Company bmartinic@resbcos.com Dear Bill, It is my pleasure to submit our parking plan for your consideration. I appreciate the opportunity to take a look at how Propark can be an outstanding parking partner to the Avon Hotel! I feel strongly that Propark can bring not only value, but a great long-term partnership. The following pages further detail our strategy to optimize parking spaces under valet parking. When you combine Propark’s 38+ years of parking experience with my 15+ years in the parking industry, there is no doubt that Propark is the operator of choice for your hotel. We are the largest employee-owned parking company in the United States; and while our roots began in commercial parking, we have long since expanded to hospitality, airport parking, transportation, campuses and healthcare. Bill, I am excited to demonstrate how Propark is the partner of choice for your hotel. Our team is ready to ROCK! Sincerely, Han Chau Regional Vice President 2 Partnership with 6WRQHEULGJH&RPSDQLHV & Propark Mobility OVERVIEW DETAIL TRANSPARENT COMMUNICATIONS PARKING SPACE OPTIMIZATION WHY PROPARK TOPIC LOCAL LEADERSHIP & SUPPORT VALET OPERATION By operating a full-time valet only parking operation, Propark is able to optimize parking garage VSDFHVWR%DVHOLQH&DSDFLW\DW158 parking spaces 5RRPWR3DUNLQJ6SDFH5DWLRRI ZLWK3HDN+RXUV3DUNLQJDW SDUNLQJVSDFHV 5DWLRRI  With former 5-star hotel managers on our team, our training is second-to- none. Our Valets, Attendants and Bell Staff make certain that the first and last impression a guest or visitor has, is the best impression. We will evaluate your existing staff to ensure that all service standards are where they should be. Parking is what we do. Therefore, we will consult and provide recommendations based upon our years of experience, bringing additional revenue to your bottom line and overall improved communication with your team. Propark Mobility manages 16 locations and over 225 employees in the state of Colorado. That means access to an on-demand team ready to support when needed. We understand how to ensure a successful operation and train all team members to provide the highest levels of service to you AND your guests and visitors. UP 1. REFER TO A12.00.01 THRU A12.01 FOR PARKING STRIPING AND LAYOUT PLANS 2. REFER TO A12.30 FOR PARKING DETAILS AND ADDITIONAL NOTES 3. PAVEMENT MARKINGS; a. PROVIDE PAVEMENT MARKING AS SHOWN ON TRAFFIC DRAWINGS. DIMENSIONAL INFORMATION IS PROVIDED ON STRIPING DETAILS. b. PAVEMENT MARKING CONTRACTOR TO PROVIDE NUMBER AND LOCATION OF PARKING SPACES INDICATED ON DRAWINGS. ANY DISCREPANCY TO BE BROUGHT TO ATTENTION OF ARCHITECT, IN WRITING, PRIOR TO INSTALLATION OF PAVEMENT MAKRINGS. c. PAVEMENT MARKING INSTALLATION TO BE A 2 COAT SYSTEM IF PAINT PRODUCTS ARE USED, NO EXCEPTIONS. PARKING AND STRIPING GENERAL NOTES:OVERALL PLAN NOTES: A. ELEVATION 100'0"= 7458.50'. THIS DATUM IS ESTABLISHED AT THE SOUTH TOWER LEVEL 1 FINISH FLOOR. B. REFER TO EXTERIOR ELEVATIONS FOR WALL ASSEMBLY AND OPENING DESCRIPTIONS. C. DIMENSIONS TO PARTITIONS ARE TO FINISHED FACE OF GYP. BD. OR CMU. D. EXTERIOR DEMENSIONS ARE FROM FACE OF EXTERIOR FINISH, U.N.O. E. MASONRY DIMENSIONS ARE NOMINAL, U.N.O. F. REFER TO A.00 THROUGH A.0 FOR REFLECTED CEILING PLANS. G. REFER TO G0.02 TRHOUGH G0.0 FOR PARTITIONS, PARTITION DETAILS AND ALL HORI=ONTAL DUCT ENCLOSURES. H. REFER TO A0.XX FOR TYPICAL MOUNTING HEIGHTS. I. REFER TO A11.00 SHEETS FOR FLOOR FINISH LIMITS AND ARCHITECTURAL SIGNAGE LOCATIONS. -. BLOCKING SHALL BE RE4UIRED IN ALL BATHROOMS PER ANSI 11.1, CHAPTER . K. COMPLY WITH F.A.A. RE4UIREMENTS FOR OBSTRUCTION MARING AND LIGHTING. L. FF E LAYOUT SHOWN FOR REFERENCE ONLY, RE ID DRAWINGS. M. REFER TO AX.XX FOR OVERALL AND ACCESSIBLE GUEST ROOM MIX. N. REFER TO SHEET A2.0 FOR ALL ROOF TYPE CALLOUTS. O. WHERE GUEST ROOMS ARE IDENTIFIED WITH COMMUNICATION FEATURES INSTALL A VISUAL NOTIFICATION TO ALERT ROOM OCCUPANTS OF INCOMING TELEPHONE CALLS AND A DOOR KNOCK OR BELL. NOTIFICATION DEVICES SHALL NO BE CONNECTED TO A VISIBLE ALARM SIGNAL APPLIANCE. PROVIDE AT LEAST ONE PHONE WITH A VISUAL NOTIFICATION AND VOLUME CONTROLL IN EACH GUESTROOM. P. TYP. ALL OF MEETING ROOMS, CORRIDORS, PREFUNCTION, AND ANY OTHER PUBLIC AREA ANY WALL MOUNTED DEVICE SHALL NOT PROTRUDE MORE THAN  MAX FROM WALL UNLESS A BARRIER IS INSTALLED BELOW. A.10 2 A.10 1 GGGG3G2 G10GG GD GE GC G11 1 A.01BBBBBBBBBBBBBBBBB 1 A.01BBBBBBBBBBBBBBBBB 3 A.01BBBBBBBBBBBBBBBBB 3 A.01BBBBBBBBBBBBBBBBB 1 A.13BBBBBBBBBBBBBBBBB GF GA 2 A.01BBBBBBBBBBBBBBBBB 2 A.01BBBBBBBBBBBBBBBBB GG GB 1 22 P G GC.  A.10BBBBBBBBBBBBBBBBB 1 A.11BBBBBBBBBBBBBBBBB1 A.12BBBBBBBBBBBBBBBBB3 A.13BBBBBBBBBBBBBBBBB 1 A.1BBBBBBBBBBBBBBBBB 1 A.1BBBBBBBBBBBBBBBBB 1 A.1BBBBBBBBBBBBBBBBB 1 A.10BBBBBBBBBBBBBBBBB GH G1   0     13    1    2  0 30  0    3         3 30 2 32 02 02 02 02 02 01 1 2    A 3 A.11BBBBBBBBBBBBBBBBB3 A.12BBBBBBBBBBBBBBBBB1 A.1BBBBBBBBBBBBBBBBB3 A.1BBBBBBBBBBBBBBBBB 3 A.10BBBBBBBBBBBBBBBBB  A.1BBBBBBBBBBBBBBBBB 3 A.1BBBBBBBBBBBBBBBBB  A.1BBBBBBBBBBBBBBBBB 3 A.1BBBBBBBBBBBBBBBBB 1 A.1BBBBBBBBBBBBBBBBB 3 A.1BBBBBBBBBBBBBBBBB  A.1BBBBBBBBBBBBBBBBB G.G11. PARKING LIFTS E4. TO HARDING STEEL 2T, TYP. MANHOLE ACCESS TO GREASE VAULT BELOW MANHOLE ACCESS TO SANDOIL VAULT BELOW FLATWORK ON GRADE RAMPING ABOVE EXHAUST INTAKE LOUVER EXHAUST LOUVER GAS METER BANK AT GRADE PROPERTY LINE, TYP.PROPERTYLINE,TYP. LEVEL P1 F.F.E. 83'-0" = 7441.50' RIDGE ELEVATION .2 RAMP 2. DOWN TO GARAGE STAIR 2 S010 TRASH HOLDING 011 TRASH DROP 012 PARKING P1 010 ELEV 1 ELEV 2 STAIR 1 S011 BIKE RM 013 EXHAUST BOILER ROOM 014 BBBBBBBBBBBBBBBBBA3.302 BBBBBBBBBBBBBBBBBA3.31 1 OH COILING DOOR    3   1  1  3   10 3   11 0  10 1    2 23 032  0  0 02  PR O P E R T Y L I N E , T Y P . PROPERTY LINE, TYP. PROPERTYLINE, T YP . 2 2 01   AL I G N     23  12  1XMR1XM     3    11  0 11  3 0 1    1XM 1 XM  01    11 3 11 112 1 12 2  11 1  1 1   20  2    2  0 3    1  0 3  0 3 1               3  0 3 1 1  0  3 20  2    1  1 1     R1XM S011 20  1  31 0 1      11    1XM1 XM  1XM 1 XM   PARKING LIFTS E4. TO HARDING STEEL 2T, TYP. PARKING LIFTS E4. TO HARDING STEEL 2T, TYP. PARKING LIFTS E4. TO HARDING STEEL 2T, TYP. 01 2  1 0 1  1  122  10 12 010 1 &/ 3    2  10 3   TD AL I G N AL I G N  1 1 11 3  3 1      0     3    1    21    2 10 11  11  12  1 &/ 2  3     2  3 3   FD FD FD FD FD S010   01 0 2 0 G12 GC. G.3 G.G. GB. G11.3 -OB NO.SHEET SUBMISSIONDATE ,1&203/(7('2&80(176 )25,17(5,05(9,(: 21/<127)25 5(*8/$725<$33529$/ 3(50,725&216758&7,21 ARCHITECT SEAL CURRENT SUBMISSION0 DHVLJQ DHYHORSPHQW A2.00133 LEVEL P1 FLOOR PLAN AVON HOTEL ARCHITECT NAME STATE REGISTRATION  STATE REGISTRATION  PARKING BY SI=E LEVEL TYPE QTY LEVEL P1 AS 0 LEVEL P1 P  LEVEL P1 S 1 LEVEL P1 VAN ACCESSIBLE 0 ACCESS X1 1 LEVEL P1 VAN ACCESSIBLE  ACCESS X1 1 11 TOTAL PARKING 1111 BECK ARCHITECTURE 1001 1TH STREET SUITE PL100 DENVER, CO 0202 PH 303 FAX 303 WWW.BECKARCHITECTURE.COM 3URMHFW 1RUWK 7UXH 1RUWK PLAN KEYNOTES #KEYNOTE DESCRIPTION 1 VENEER DECORATIVE STONE OVER CONCRETE STRUCTURAL COLUMN, WITH ACCENT DOWN LIGHTS ABOVE  EACH COLUMN . 2 MOVABLE GLASS WALL SYSTEM, EXTERIOR INSULATED, DARK BRON=E FINISH, WITH EGRESS DOOR PANEL, E4UAL TO NANA WALL SYSTEMS 3 PASSENGER AND SERVICE ELEVATOR, WITH REARD DOOR ACTIVE ON LEVEL 1 SERVICE ENTRY 30 FPM W STRETCHER ACCESS, PREMIUM CAB FINISH AND HOOKS ABOVE FOR PADDED WALL PROTECTION, DARK BRON=E DOORS INTERIOR AND EXTERIOR LEVELS 1 PASSENGER ELEVATOR, 30 FPM W STRETCHER ACCESS, PREMIUM CAB FINISH, DARK BRON=E DOORS INTERIOR AND EXTERIOR LEVELS 1  2 3[ HIGH FULLY RECESSED POCKET DOORS, NO EXPOSED HARDWARE, WITH MAG HOLD OPENS, E4. TO TOTAL DOOR SYSTEM. WIRE INTO F.A. SYSTEM PROVIDE TOPPING SLAB TO LEVEL FLOOR IN ROOM. INDOOR GAS FIREPLACE, RE ID 10 INDOOROUTDOOR GAS FIREPLACE, RE ID 11 HYDRATION STATION NOOK, UNDER COUNTER ICE STORAGE, TRASH RECEIPITAL, FILTER WATER NO==EL AND SPARKLING WATER DISPENSOR BASE CABINETS AND OPEN SHELVE STORAGE 1 1 0A2.001 FLOOR PLANLEVEL P1 A0022 CRQcHSW DHVLJQ B0122 ScKHPaWLc DHVLJQ D12022 0 DHVLJQ DHYHORSPHQW VALET PARKING FULY STACKED LEVEL TYPE QTY LEVEL P1 AS 0 LEVEL P1 P  LEVEL P1 S 1 LEVEL P1 VAN ACCESSIBLE 0 ACCESS X1 1 LEVEL P1 VAN ACCESSIBLE  ACCESS X1 1  TOTAL PARKING11 LEVEL P1 AISLE  DOUBLE PARKED BaVHOLQH PaUNLQJ POaQ  1 VHKLcOHV ADD GLASS/ VESTIBULE LEVEL P1 AISLE  DOUBLE PARKED  BaVHOLQH PaUNLQJ POaQ  1 VHKLcOHV TOTAAAL PARKING11 UP 1. REFER TO A12.00.01 THRU A12.01 FOR PARKING STRIPING AND LAYOUT PLANS 2. REFER TO A12.30 FOR PARKING DETAILS AND ADDITIONAL NOTES 3. PAVEMENT MARKINGS; a. PROVIDE PAVEMENT MARKING AS SHOWN ON TRAFFIC DRAWINGS. DIMENSIONAL INFORMATION IS PROVIDED ON STRIPING DETAILS. b. PAVEMENT MARKING CONTRACTOR TO PROVIDE NUMBER AND LOCATION OF PARKING SPACES INDICATED ON DRAWINGS. ANY DISCREPANCY TO BE BROUGHT TO ATTENTION OF ARCHITECT, IN WRITING, PRIOR TO INSTALLATION OF PAVEMENT MAKRINGS. c. PAVEMENT MARKING INSTALLATION TO BE A 2 COAT SYSTEM IF PAINT PRODUCTS ARE USED, NO EXCEPTIONS. PARKING AND STRIPING GENERAL NOTES:OVERALL PLAN NOTES: A. ELEVATION 100'0"= 7458.50'. THIS DATUM IS ESTABLISHED AT THE SOUTH TOWER LEVEL 1 FINISH FLOOR. B. REFER TO EXTERIOR ELEVATIONS FOR WALL ASSEMBLY AND OPENING DESCRIPTIONS. C. DIMENSIONS TO PARTITIONS ARE TO FINISHED FACE OF GYP. BD. OR CMU. D. EXTERIOR DEMENSIONS ARE FROM FACE OF EXTERIOR FINISH, U.N.O. E. MASONRY DIMENSIONS ARE NOMINAL, U.N.O. F. REFER TO A.00 THROUGH A.0 FOR REFLECTED CEILING PLANS. G. REFER TO G0.02 TRHOUGH G0.0 FOR PARTITIONS, PARTITION DETAILS AND ALL HORI=ONTAL DUCT ENCLOSURES. H. REFER TO A0.XX FOR TYPICAL MOUNTING HEIGHTS. I. REFER TO A11.00 SHEETS FOR FLOOR FINISH LIMITS AND ARCHITECTURAL SIGNAGE LOCATIONS. -. BLOCKING SHALL BE RE4UIRED IN ALL BATHROOMS PER ANSI 11.1, CHAPTER . K. COMPLY WITH F.A.A. RE4UIREMENTS FOR OBSTRUCTION MARING AND LIGHTING. L. FF E LAYOUT SHOWN FOR REFERENCE ONLY, RE ID DRAWINGS. M. REFER TO AX.XX FOR OVERALL AND ACCESSIBLE GUEST ROOM MIX. N. REFER TO SHEET A2.0 FOR ALL ROOF TYPE CALLOUTS. O. WHERE GUEST ROOMS ARE IDENTIFIED WITH COMMUNICATION FEATURES INSTALL A VISUAL NOTIFICATION TO ALERT ROOM OCCUPANTS OF INCOMING TELEPHONE CALLS AND A DOOR KNOCK OR BELL. NOTIFICATION DEVICES SHALL NO BE CONNECTED TO A VISIBLE ALARM SIGNAL APPLIANCE. PROVIDE AT LEAST ONE PHONE WITH A VISUAL NOTIFICATION AND VOLUME CONTROLL IN EACH GUESTROOM. P. TYP. ALL OF MEETING ROOMS, CORRIDORS, PREFUNCTION, AND ANY OTHER PUBLIC AREA ANY WALL MOUNTED DEVICE SHALL NOT PROTRUDE MORE THAN  MAX FROM WALL UNLESS A BARRIER IS INSTALLED BELOW. A.10 2 A.10 1 GGGG3G2 G10GG GD GE GC G11 1 A.01BBBBBBBBBBBBBBBBB 1 A.01BBBBBBBBBBBBBBBBB 3 A.01BBBBBBBBBBBBBBBBB 3 A.01BBBBBBBBBBBBBBBBB 1 A.13BBBBBBBBBBBBBBBBB GF GA 2 A.01BBBBBBBBBBBBBBBBB 2 A.01BBBBBBBBBBBBBBBBB GG GB 1 22 P G GC.  A.10BBBBBBBBBBBBBBBBB 1 A.11BBBBBBBBBBBBBBBBB1 A.12BBBBBBBBBBBBBBBBB3 A.13BBBBBBBBBBBBBBBBB 1 A.1BBBBBBBBBBBBBBBBB 1 A.1BBBBBBBBBBBBBBBBB 1 A.1BBBBBBBBBBBBBBBBB 1 A.10BBBBBBBBBBBBBBBBB GH G1   0     13    1    2  0 30  0    3         3 30 2 32 02 02 02 02 02 01 1 2    A 3 A.11BBBBBBBBBBBBBBBBB3 A.12BBBBBBBBBBBBBBBBB1 A.1BBBBBBBBBBBBBBBBB3 A.1BBBBBBBBBBBBBBBBB 3 A.10BBBBBBBBBBBBBBBBB  A.1BBBBBBBBBBBBBBBBB 3 A.1BBBBBBBBBBBBBBBBB  A.1BBBBBBBBBBBBBBBBB 3 A.1BBBBBBBBBBBBBBBBB 1 A.1BBBBBBBBBBBBBBBBB 3 A.1BBBBBBBBBBBBBBBBB  A.1BBBBBBBBBBBBBBBBB G.G11. PARKING LIFTS E4. TO HARDING STEEL 2T, TYP. MANHOLE ACCESS TO GREASE VAULT BELOW MANHOLE ACCESS TO SANDOIL VAULT BELOW FLATWORK ON GRADE RAMPING ABOVE EXHAUST INTAKE LOUVER EXHAUST LOUVER GAS METER BANK AT GRADE PROPERTY LINE, TYP.PROPERTYLINE,TYP. LEVEL P1 F.F.E. 83'-0" = 7441.50' RIDGE ELEVATION .2 RAMP 2. DOWN TO GARAGE STAIR 2 S010 TRASH HOLDING 011 TRASH DROP 012 PARKING P1 010 ELEV 1 ELEV 2 STAIR 1 S011 BIKE RM 013 EXHAUST BOILER ROOM 014 BBBBBBBBBBBBBBBBBA3.302 BBBBBBBBBBBBBBBBBA3.31 1 OH COILING DOOR    3   1  1  3   10 3   11 0  10 1    2 23 032  0  0 02  PR O P E R T Y L I N E , T Y P . PROPERTY LINE, TYP. PROPERTYLINE, T YP . 2 2 01   AL I G N     23  12  1XMR1XM     3    11  0 11  3 0 1    1XM 1 XM  01    11 3 11 112 1 12 2  11 1  1 1   20  2    2  0 3    1  0 3  0 3 1               3  0 3 1 1  0  3 20  2    1  1 1     R1XM S011 20  1  31 0 1      11    1XM1 XM  1XM 1 XM   PARKING LIFTS E4. TO HARDING STEEL 2T, TYP. PARKING LIFTS E4. TO HARDING STEEL 2T, TYP. PARKING LIFTS E4. TO HARDING STEEL 2T, TYP. 01 2  1 0 1  1  122  10 12 010 1 &/ 3    2  10 3   TD AL I G N AL I G N  1 1 11 3  3 1      0     3    1    21    2 10 11  11  12  1 &/ 2  3     2  3 3   FD FD FD FD FD S010   01 0 2 0 G12 GC. G.3 G.G. GB. G11.3 -OB NO.SHEET SUBMISSIONDATE ,1&203/(7('2&80(176 )25,17(5,05(9,(: 21/<127)25 5(*8/$725<$33529$/ 3(50,725&216758&7,21 ARCHITECT SEAL CURRENT SUBMISSION0 DHVLJQ DHYHORSPHQW A2.00133 LEVEL P1 FLOOR PLAN AVON HOTEL ARCHITECT NAME STATE REGISTRATION  STATE REGISTRATION  PARKING BY SI=E LEVEL TYPE QTY LEVEL P1 AS 0 LEVEL P1 P  LEVEL P1 S 1 LEVEL P1 VAN ACCESSIBLE 0 ACCESS X1 1 LEVEL P1 VAN ACCESSIBLE  ACCESS X1 1 11 TOTAL PARKING 1111 BECK ARCHITECTURE 1001 1TH STREET SUITE PL100 DENVER, CO 0202 PH 303 FAX 303 WWW.BECKARCHITECTURE.COM 3URMHFW 1RUWK 7UXH 1RUWK PLAN KEYNOTES #KEYNOTE DESCRIPTION 1 VENEER DECORATIVE STONE OVER CONCRETE STRUCTURAL COLUMN, WITH ACCENT DOWN LIGHTS ABOVE  EACH COLUMN . 2 MOVABLE GLASS WALL SYSTEM, EXTERIOR INSULATED, DARK BRON=E FINISH, WITH EGRESS DOOR PANEL, E4UAL TO NANA WALL SYSTEMS 3 PASSENGER AND SERVICE ELEVATOR, WITH REARD DOOR ACTIVE ON LEVEL 1 SERVICE ENTRY 30 FPM W STRETCHER ACCESS, PREMIUM CAB FINISH AND HOOKS ABOVE FOR PADDED WALL PROTECTION, DARK BRON=E DOORS INTERIOR AND EXTERIOR LEVELS 1 PASSENGER ELEVATOR, 30 FPM W STRETCHER ACCESS, PREMIUM CAB FINISH, DARK BRON=E DOORS INTERIOR AND EXTERIOR LEVELS 1  2 3[ HIGH FULLY RECESSED POCKET DOORS, NO EXPOSED HARDWARE, WITH MAG HOLD OPENS, E4. TO TOTAL DOOR SYSTEM. WIRE INTO F.A. SYSTEM PROVIDE TOPPING SLAB TO LEVEL FLOOR IN ROOM. INDOOR GAS FIREPLACE, RE ID 10 INDOOROUTDOOR GAS FIREPLACE, RE ID 11 HYDRATION STATION NOOK, UNDER COUNTER ICE STORAGE, TRASH RECEIPITAL, FILTER WATER NO==EL AND SPARKLING WATER DISPENSOR BASE CABINETS AND OPEN SHELVE STORAGE 1 1 0A2.001 FLOOR PLANLEVEL P1 A0022 CRQcHSW DHVLJQ B0122 ScKHPaWLc DHVLJQ D12022 0 DHVLJQ DHYHORSPHQW VALET PARKING FULY STACKED LEVEL TYPE QTY LEVEL P1 AS 0 LEVEL P1 P  LEVEL P1 S 1 LEVEL P1 VAN ACCESSIBLE 0 ACCESS X1 1 LEVEL P1 VAN ACCESSIBLE  ACCESS X1 1  TOTAL PARKING11 LEVEL P1 AISLE  DOUBLE PARKED PHaN HRXUV PaUNLQJ POaQ 1 VHKLcOHV ADD GLASS/ VESTIBULE LEVEL P1 AISLE  DOUBLE PARKED  1TOTAAAL PARKING1 PHaN HRXUV PaUNLQJ POaQ  1 VHKLcOHV Partnership with Stonebridge Companies & Propark Mobility 5 *NPS scores are made on a scale of -100 to 100, putting Propark in the upper quarter of service. Other industry leader scores were found at https://www.satmetrix.com/2019-us-consumer-benchmarks/ HOW WE RATE ABOUT US ϰϯϬϬ Partnership with Stonebridge Companies & Propark Mobility PREMIUM SERVICE STARTS WITH PREMIUM TRAINING We empower our Parking People with premium training and individual development to promote friendly and consistent levels of service excellence throughout our organization. Each position at Propark is held by “the right person for the job”; we provide our parking people with room for personal growth and career advancement as is evident in our current roster of Account Managers and Supervisors who began their careers as distinguished valet attendants. FIVE-STAR SERVICE EXCELLENCE We handle every parking arrival like the front door of a five-star hotel. Our former luxury hotel professionals know how to educate our team members to see things from a guests’ perspective, anticipate and then act. ATTENTION TO DETAIL Educating our valets and bell staff to notice the smallest of details makes a huge difference in a guest experience. Noticing the wrinkles behind pant legs indicating a long trip, to reading a guest’s desire to engage in conversation—these things matter. SUPERIOR TRAINING Our training process includes protocols to ensure the safety of our employees, our guests and our clients; seminars on customer relations, resolving guest incidents and promoting empowerment. VALET TRAINING TRAINING Partnership with Stonebridge Companies & Propark Mobility TRAINING & QUALITY CONTROL 8 INTERACTIVE SETUP We will merge Propark and your brand standards to create a customized “Brand Standard Review (BSR).” CLARIFY EXPECTATIONS Teach brand standards and ensure that all team members understand responsibilities and prioritize action items. EXECUTE With expectations and brand standards clear, lead the team and practice what we’ve learned. MEASURE & ADJUST Improve through consistent evaluation of performance, teaching our associates, and making necessary adjustments. TRAINING Partnership with 6WRQHEULGJH&RPSDQLHV & Propark Mobility TRAINING & QUALITY CONTROL TRAINING Employees are our most valuable resource. Propark is vested in the success and growth of each employee, through our comprehensive training program entitled Propark THINK. •Created to provide employees with expansive training and development opportunities •Educates our staff through an intuitive, cloud-based, one- stop, collaborative learning environment for leaders and employees •Designed to make training and learning opportunities truly accessible to all employees •Focused on ease-of-use and a custom user interface that enhances our culture and value •All training is hosted through this portal beginning with the New Employee Orientation and continuing with individual training courses •By delivering training via a learning management system (“LMS”), Propark team members enjoy access to real-time- learning data and reporting capabilities to track user activity, progress and engagement. Click the videos to the right to launch a YouTube learning session and learn how we do it at Propark. ATTACHMENT B Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 1 of 15 DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT (“Agreement”) is made and entered into as of June ____, 2023, (the “Effective Date”) by and between Lot 3 Mountain Vista LLC, a Colorado limited liability corporation (“Owner”), and the Town of Avon, a home rule municipal corporation of the State of Colorado (“Town”) (Owner and Town may be referred to individually as “Party” and collectively as “Parties”), and, as to Article V of this Agreement only, Upper Eagle Regional Water Authority, a quasi-municipal corporation and political subdivision of the State of Colorado (“Authority”). RECITALS A. The Owner owns approximately 1.099 acres within the Town that is legally described as: Lot 3, Mountain Vista Resort Subdivision, according to the Plat thereof recorded on March 31, 2021 at Reception No. 202109327, Town of Avon, County of Eagle, State of Colorado Street address: 140 W Beaver Creek Blvd, Town of Avon, County of Eagle, State of Colorado (“Property”). B. The Owner submitted an application to the Town for approval of a Major Development Plan and Development Bonus application for a hotel project referred to as ____________ (“Application”). C. After holding a public hearing on April 18, 2023, the Town of Avon Planning and Zoning Commission recommended approval of the Application. D. The Application includes a Landscape Plan and Irrigation Plan, which includes a limited irrigated area and drought tolerant species. E. The Application includes public improvements that necessitate further review, security, warranty, and acceptance upon satisfactory completion. F. Development of the Property in accordance with this Agreement will provide for orderly growth in accordance with the policy and goals set forth in the Town’s Comprehensive Plan; ensure reasonable certainty, stability and fairness in the land use planning process; stimulate economic growth; secure the reasonable investment-backed expectations of the Owner; foster cooperation between the public and private sectors in the area of land use planning; and otherwise achieve the goals and purposes of the Town. Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 2 of 15 AGREEMENT NOW, THEREFORE, in consideration of the recitals set forth above, the terms, conditions, covenants, and mutual promises set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Owner and the Town agree as follows with respect to the development of the Property: ARTICLE I DEFINITIONS The following terms shall have the meanings set forth below unless the context in which they are used clearly indicates otherwise: 1.1 Development. The project to be constructed on the Property as described in the Development Plan. 1.2 Development Bonus. [Eric, Matt or Jena can you fill this in] 1.3 Development Plan. The Major Design and Development Plan described and depicted in the Application that was approved by the Town is made part of the land use approval for the Development Plan. 1.4 Development Plan Components. The following plan set sheets contained in the Development Plan are incorporated by reference into and made a part of this Agreement: Public Property Improvement Map Landscape Plan & Irrigation Plan Owner Maintained Public Improvements 1.5 Exhibits. The following Exhibit is to this agreement is incorporated by reference and made part of this Agreement: Exhibit A - Parking Covenant 1.6 Landscape & Irrigation Plan. The approved Landscape Plan and Irrigation Plans, ______________of the Development Plan, is made part of the land use approval for the Development Plan. 1.7 Municipal Code. The Avon Municipal Code, including the Avon Development Code, as may be amended from time to time. 1.8 Public Improvements. Those improvements to be acquired, constructed, or installed for the benefit of the public, including, but not limited to, the Public Improvements described in Article IV and in the Public Property Improvement Map. Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 3 of 15 1.9 Public Property Improvement Map. The approved Public Property Improvement Map, ________________ of the Development Plan, is made part of the land use approval for the Development Plan. 1.10 ROW. “ROW” shall mean that certain public right of way as described in the Development Plan. 1.11 Term. The term of this Agreement as provided in Article III. ARTICLE II DEVELOPMENT PLAN 2.1 Development Plan. The Development Plan sets forth the approved scope of development of the Property and has been approved by the Town through action by the Town of Avon Planning and Zoning Commission and Town Council, including the Development Bonus. 2.2 Compliance with General Regulations. The approval of the Development Plan and this Agreement shall not preclude the application of Town ordinances and regulations, or state or federal laws and regulations, which are general in nature and are applicable to all property subject to land use regulation by the Town, including, but not limited to, building, exterior energy offset, fire, plumbing, electrical and mechanical codes, as all such regulations exist on the date of this Agreement or may be enacted or amended after the date of this Agreement. ARTICLE III TERM 3.1 Term. The term of this Agreement shall commence on the Effective Date of this Agreement and shall continue after construction of the building(s) for so long as the building(s) which comprises the Development continues to exist and for five (5) years after such time the building(s) that comprises the Development no longer exist on the Property. In the event the building(s) which comprises the Development is destroyed by fire or other calamity and then reconstructed within five (5) years, such reconstructed building shall be deemed the building(s) that comprises the Development and this Agreement shall continue in full force and effect until five (5) years after the reconstructed building no longer exists. The Parties may terminate this Agreement earlier by mutual agreement. ARTICLE IV PUBLIC IMPROVEMENTS 4.1 Public Improvements. The Owner agrees to construct and install the public improvements set forth in this Agreement (the “Public Improvements”). Such obligations directly relate to the Application complying with the minimum required development standards set forth in the Code and are material to the terms, conditions, covenants, and mutual promises bargained for by Town and the Owner in this Agreement. The Owner shall install or cause to be installed all Public Improvements that the Owner is required to Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 4 of 15 construct in a good and workmanlike manner in accordance with the applicable regulations of the Town and applicable Utilities, as defined below, and in accordance with this Agreement. (a) Utility Improvements. The Owner agrees to install all utility improvements as described in the Development Plan. (b) Drainage Improvements. The Owner shall install drainage improvements for stormwater control and quality as described in the Development Plan. (c) Pedestrian Connection. The Owner shall participate in connecting this property to the Town Hall site, such improvements to be mutually agreed upon with the Town of Avon to extent of connection. 4.2 Security for Public Improvements. Owner shall post sufficient security to guarantee the installation, performance, or maintenance of any required Public Improvements, and any public facilities damaged by Developer during construction of the Development or Public Improvements. The total amount of required security for Public Improvements for the Development shall be 125% of the Owner’s engineer’s estimate of the cost to complete Public Improvements identified on the Public Improvement Map. Security shall be in a form acceptable to and approved by the Town Manager and Town Attorney. As Public Improvements are completed, Developer may apply to the Town Manager for release for all or part of the security. 4.3 Timing of Public Improvements. The Owner shall complete the Public Improvements and the Town shall have provided written notification of acceptance of the Public Improvements by the Town (the “Town’s Notification of Acceptance”) on or before the earlier of (1) date of a certificate of occupancy or temporary certificate of occupancy, whichever is earlier, for the Development, or (2) within three (3) years of obtaining a building permit, whichever is earlier. The Owner shall inform the Town of all construction plans within Town property and within the ROW at least ninety (90) days prior to the start of construction that is to occur within Town property or the ROW. If the Owner has not received the Town’s Notification of Acceptance from the Town of all Public Improvements, the Town may withhold the issuance of a Temporary Certificate of Occupancy. 4.4 Warranty Period. The Public Improvements constructed and installed by the Owner shall be warranted to be free from defects in material, workmanship, and quality for a period of two (2) years after the date of the Town’s Notification of Acceptance (the “Warranty Period”). In the event of any such defect arising during the Warranty Period, the Town may require the Owner to correct the defect in material, workmanship, or quality. Ten percent (10%) of the total actual cost of completion of all Public Improvements to be installed and constructed by the Owner shall be collected by the Town from the Owner as security during such two (2) year period as the improvement warranty pursuant to Code § 7.32.100, as may be amended. In the event any corrective work with respect to the material, workmanship and quality is performed during the Warranty Period then the Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 5 of 15 warranty on said corrected work with respect to the material, workmanship and quality shall be extended for two (2) years from the date on which it is completed. Security equal to 125% of the cost of any corrected work with respect to the material, workmanship and quality, as estimated by the Town, shall be retained by the Town or immediately paid to the Town by the Owner, if sufficient funds are not held by the Town, in accordance with Code § 7.32.100, for a period of two (2) years from the date of completion of the corrected work. 4.5 Engineering Certification. Upon completion of portions of the Public Improvements to be installed and constructed by the Owner, the Owner will cause its engineers (who shall have been actively engaged in observing to a commercially reasonable degree the construction of the Public Improvements and who are licensed in the State of Colorado) to provide a written opinion. The written opinion shall be in form and content reasonably satisfactory to the Town’s Engineer, and based upon on-site observation, review of sufficient construction- observation reports, field test reports, and material test reports and certifications by qualified personnel, shall opine that the installation of the Public Improvements, or portions thereof as may be completed from time to time, have been completed, and that to the best of the opining engineer’s knowledge and professional judgment, the Public Improvements are in conformance with all Standards (as defined below), plans, and specifications as submitted to and previously approved by the Town, or the pertinent utility supplier, as depicted on Sheets _____________of the Development Plan. Inspection reports, test results, as-constructed plans, including surveys, and other supporting documentation shall be submitted with the certification. The as-constructed plans shall be submitted on paper and in a digital format, either AutoCad DWG, AutoCad DXF, or ESRI GIS shapefile. 4.6 Inspection Procedures. All Public Improvement work shall be done under the published inspection procedures and standards (collectively, “Standards”) established by the Town, Holy Cross Energy, Eagle River Water and Sanitation District, Upper Eagle Regional Water Authority, Xcel Energy, CenturyLink, Comcast, or any other utility (“Utilities”), as applicable and shall be subject to the reasonable satisfaction of the Town and applicable Utilities. No work shall be deemed complete until the reasonable approval and acceptance of the Public Improvements by the Town or the Utilities. Inspections by the Town and Utilities shall not relieve the Owner or the Owner’s agents from any responsibility or obligation to ensure that all work is completed in conformance with all Standards, plans, and specifications as submitted to and previously approved by the Town and Utilities. (a) Cost of Inspections: The cost, if any, of inspections, by Town employees, or an independent third-party inspector, shall be paid by the Owner. (b) Notice of Non-Compliance: In the event that the Town, through its inspectors, reasonably determines that the Public Improvements to be installed and constructed by the Owner are not in compliance with the Development Plan, it shall give written notice of such non-compliance (“Notice of Non-Compliance”) to the Owner. The Notice of Non-Compliance shall include a narrative describing Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 6 of 15 the unsatisfactory construction work with specific reference to the applicable construction plans and specifications with which the Public Improvements fail to comply. The Notice of Non- Compliance must be provided to the Owner within two (2) working days of the date of the inspection. 4.7 Indemnification and Hold Harmless. The Owner shall indemnify, defend and hold harmless the Town (and its officials, agents, representatives, employees, contractors, and successors and assigns) from all claims, demands, damages (including, without limitation, consequential damages), causes of action, fines, penalties, losses, liability, judgments, costs or expenses (including reasonable attorneys’ fees) resulting from claims for bodily injury (including death) to any person or damage to any property, arising during the construction of the Public Improvements or otherwise arising on the Property or from the Owner’s activities while performing this Agreement (including, without limitation, maintenance, repair and replacement activities), including without limitation any claim that all or any portion of the Public Improvements installed and constructed by the Owner on Town property or ROW constitute a dangerous and/or unsafe condition within a public right-of-way; provided, however, that this indemnity shall not apply to any claims, demands, damages (including, without limitation, consequential damages), causes of action, fines, penalties, losses, liability, judgments, costs or expenses (including reasonable attorneys’ fees) resulting from any act or omission of the Town or its officials, agents, representatives, employees, inspectors, including independent third-party inspectors, contractors, and successors and assigns. 4.8 Insurance. With respect to Owner’s obligation with respect to and/or any claims arising from the construction or installation of the Public Improvements, all Owner’s or Owner’s contractor’s insurance policies related in any way to the Public Improvements shall be endorsed to include the Town and the Town’s officers and employees as additional insureds/loss payees, applicable within each policy. Every policy covering the Public Improvements shall be primary insurance, and any insurance carried by the Town, its officers, or its employees, or carried by or provided through any insurance pool of the Town, shall be excess and not contributory insurance to that provided by the Owner or the Owner's contractors. No additional insured endorsement to the policy required herein shall contain any exclusion for bodily injury or property damage arising from completed operations. The Owner and its contractor shall be solely responsible for endorsement/additional insured costs, premiums and deductible losses under any policy required above. ARTICLE V WATER PROVISION, WATER USE AND ENFORCEMENT 5.1 Water Rights/Cash in Lieu Payment. The Property has not been allocated water rights by the Town and must dedicate water rights to serve ____ Single Family Equivalents (SFEs) and irrigate ____ acres of landscaped area as required by the Authority or, in the alternative, the Owner shall pay the Authority cash-in-lieu of a water rights dedication. The Owner shall provide proof of dedication or of payment of cash-in-lieu of water rights Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 7 of 15 dedication and proof of water system impact fees in the amount of _________ prior to the issuance of a building permit. 5.2 Indoor Water Usage Limit. The Owner shall adhere to an indoor usage water budget of no more than _______ gallons per day, per unit, and shall be responsible for managing use to this limit. Any use in excess of this limit may be subject to an excess use fee as determined by the Authority and may be subject to penalties and enforcement actions by the Town. 5.3 Outdoor Water Usage. (a) The Owner shall install a separate irrigation meter pursuant to Code § 7.28.050(g)(6)(ii)(D). This section establishes a maximum allowable outdoor water use limit for the development to ensure this Development does not exceed its outdoor water allocation as established by the Authority’s Water Dedication Requirement and Water Service Agreement between the Owner and the Authority. During the first two growing seasons, the Owner and Association shall not exceed _________ gallons of outdoor water use in any calendar year. Thereafter, the Owner and Association shall not exceed ________ gallons of outdoor water use in any calendar year. The following monthly budget is based upon a total irrigated area of _______ acres or ________ square feet. (b) Outdoor Water Usage on the Property may be curtailed by the Authority or Town during periods of low stream flows, and/or during instream flow calls. Once connected, the Authority and/or Town will monitor water usage of the Property. 5.4 Enforcement. (a) The Authority, upon determining that the Owner or Association has exceeded the Water Usage Limits prescribed above in this Article, may provide written notice by mail or e- mail to the Owner or its successors and assigns of the violation of this Section and demand that the excessive water usage cease immediately. The Town, in its sole discretion, may also issue a notice under this Section when it has been notified by the Authority that there is a violation of this Article. (b) In the event that the water usage of the Property exceeds the Water Usage Limits in this Article, the Owner and Association shall be obligated to either reduce its water usage to within the Water Usage Limits, or, at the Authority’s sole discretion, pay additional cash in lieu of a water rights dedication fees for the excess water use. If the Authority, in its sole discretion, does not accept an additional cash in lieu of water rights dedication fee, the Owner or its successors and assigns, , shall be obligated to reduce its water use to the Water Usage Limits in accordance with all remedies set forth in this Agreement. Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 8 of 15 (c) Even if the Owner or Association ceases excessive water usage immediately, the Authority, in its sole discretion, may impose excess water usage fees on the Property for the period of excess usage. (d) Failure to correct excessive outdoor irrigation water use may result in a seven (7) day Notice of Disconnection, at the sole discretion of the Authority or other enforcement action commenced by the Authority and/or Town. (e) The Town has the right, but not the obligation, to enforce the provisions of this Article and may take such action as permitted or authorized by law, this Agreement or the ordinances of the Town, as the Town deems necessary to protect the public health, safety and welfare. Nothing in this Agreement shall be construed to restrict or limit the Town’s rights to enforce and regulate water usage as such rules and regulations may be adopted the Town generally. ARTICLE VI MAINTENANCE AND ONGOING OBLIGATIONS 6.1 Operations and Maintenance. The Owner understands and acknowledges that those certain aspects of the maintenance, operation and use of the Development, including drainage, infrastructure, landscaping, and sidewalks (“Owner Maintained Public Improvements”), as delineated on Sheets ___________of the Development Plan and incorporated herein, require maintenance by Owner. (a) Except in the event such liability arises from the action or omission of Town or its officials, agents, representatives, employees, inspectors, including independent third-party inspectors, contractors, and successors and assigns, but without waiving governmental immunity, the Owner agrees that the Town is not liable, and will not assume any liability, responsibility, or costs for any damage, maintenance, or repair of any Owner Maintained Public Improvements erected or maintained by the Owner under this Agreement. (b) If the Owner fails to maintain the Owner Maintained Public Improvements, the Town may perform the necessary maintenance and/or repair, as determined by the Town in its sole discretion, after providing at least thirty (30) days written notice to the Owner detailing the necessary maintenance and/or repair. If, after the remedy period set in the notice, the Owner fails to perform the necessary maintenance and/or repair, the Town may perform such maintenance and/or repair. The actual costs of the maintenance and/or repair, together with a fifteen percent (15%) charge for administration, shall be assessed against the Property. The Town shall send a notice of assessment to the Owner and upon the expiration of the thirty (30) period provided in such notice, the costs, including the administrative charge, shall be a lien upon the Property. If the assessment is not paid within thirty (30) days of the lien, the Town may impose interest upon such costs and upon the administrative charge, at the rate of eighteen percent (18%) per Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 9 of 15 year. All costs, interest and charges, including the costs of collection, may be certified to the County Treasurer and collected in the same manner as taxes. ARTICLE VII COMMUNITY HOUSING 7.1 Community Housing Units. Owners agree to construct, as part of the Development, two (2) _____-bedroom units, consisting of not less than _______ square feet for each unit. The use of such units shall be restricted to Community Housing (as that term is defined in the Municipal Code) in accordance with such deed restrictions as approved by the Town Council, at Town Council’s sole discretion. The two units fully satisfy the inclusionary housing requirements as adopted and in effect by the Town. ARTICLE VIII RESTORATION OF SITE 8.1 Restoration Due to Inactivity. Unless a building permit extension is granted in writing by the building official upon justifiable cause demonstrated by the Owner, the building permit shall become invalid after 180 days of suspended work. If the building permit becomes invalid, the Owner shall restore the site to the condition the site was in at the time of issuance of the building permit (subject to changes reasonably necessary for public safety or preservation of land and adjoining land, or to prevent waste) within thirty (30) days from the date of notice by the Town that restoration is required. Upon restoration of the Property in accordance with this Article and to the reasonable satisfaction of the Town, this Agreement shall automatically terminate. 8.2 Restoration Funds. The Owner, upon issuance of a building permit shall provide security pursuant to Avon Municipal Code in the amount of ___________ as security for any possible future required restoration. If the obligation to restore arises (i.e., if the permit becomes invalid) and if the Owner thereafter fails to restore the Property in compliance with this Article and to the Town’s satisfaction, the Town may use such funds to cover the costs of any required restoration work. The Town shall maintain an accounting of such costs and once restoration work is completed, the Town shall return any remaining funds along with such accounting. If the funds are insufficient to perform the restoration work, the Owner, upon demand from the Town, shall deposit additional required funds as determined by the Town. If the Owner fails to provide such funds, the Town’s costs of restoration over the amount of funds current held, shall be a lien upon the Property to be collected in the same manner as property tax and the Town may certify such amount to the County Assessor for collection, including an additional 10% imposed by the Town for costs of collection. 8.3 Return of Funds. After the issuance of a Certificate of Occupancy, the Town shall refund 50% of the restoration funds to the Owner. After the issuance of a final Certificate of Occupancy for the last building to be constructed within the Development, the Town shall refund the remaining restoration funds to the Owner. Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 10 of 15 ARTICLE IX DEFAULTS, REMEDIES AND TERMINATION 9.1 Default by Town. A “breach” or “default” by the Town under this Agreement shall be defined as the Town’s failure to perform its obligations under this Agreement, after the applicable cure period described in Section 9.3, below. 9.2 Default by Owner. A “breach” or “default” by the Owner shall be defined as the Owner’s failure to fulfill or perform any obligation of the Owner contained in this Agreement following the applicable cure period described in Section 9.3, below, or the Owner’s failure to fulfill or perform any obligation of the Owner contained in any other written agreement relating to the Property between the Town and the Owner or the Town following any applicable cure period contained in such agreement. 9.3 Notices of Default. In the event of a default by either Party under this Agreement, the non-defaulting Party shall deliver written notice to the defaulting Party of such default, at the address specified in Section 10.6, and the defaulting Party shall have five (5) days for monetary obligations and thirty (30) days for non-monetary obligations from and after receipt of such notice to cure such default. With respect to non-monetary obligations, if such default is not of a type that with the exercise of reasonable diligence can be cured within such thirty (30) day period and the defaulting Party gives written notice to the non-defaulting Party within such thirty (30) day period that it is actively and diligently pursuing such cure, the defaulting Party shall have a reasonable period of time up to one hundred eighty (180) days given the nature of the default to cure such default, provided that such defaulting Party is at all times within such additional time period actively and diligently pursuing such cure. 9.4 Remedies for Default by Town. If a default by Town under this Agreement is not cured as described in Section 9.3, the Owner shall have the right to enforce the Town’s obligations by an action for any equitable remedy, including, without limitation, injunction or specific performance or an action to recover damages. Each remedy in this Section 9.4 is cumulative and is in addition to every other remedy provided for in this Agreement or otherwise existing at law or in equity. 9.5 Remedies for Default by the Owner. If any default by the Owner under this Agreement is not cured as described in Section 9.3, the Town shall have the right to enforce the Owner’s obligations hereunder by an action for any equitable remedy, including injunction or specific performance, or an action to recover damages. Each remedy in this Section 9.5 is cumulative and is in addition to every other remedy provided for in this Agreement or otherwise existing at law or in equity. In addition, if a default of this Agreement by the Owner also constitutes a violation of the Code and non- compliance with the Development Plan for this Property then the Town shall have all enforcement rights as described in the Code and other applicable sections of the Code concerning enforcement and penalties for violations, as the Code may be amended from time to time. Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 11 of 15 9.6 Mediation. The Parties agree that prior to submitting any controversy or claim arising out of or relating to this Agreement, including, without limitation, any breach, default, or interpretation hereof, to a legal process, and as a prerequisite to initiating any legal process, the Parties shall attempt to resolve the controversy or claim in good faith in accordance with the procedures stated in this Section 9.6. The Party asserting the breach, default, controversy, or claim shall first provide written notice to the other Party, citing this Section 9.6, and requesting consideration by the other Party to resolve the controversy or claim. The Parties shall use reasonable efforts to resolve the dispute within thirty (30) days from the date of the notice commencing this process. If the dispute is not resolved within thirty (30) days of the date of the notice, or by such longer period as may be mutually agreed by the Parties, then either Party may initiate a legal action. At any time after the written notice citing Section 9.6, the Parties may mutually agree to appoint an independent neutral third party (the “Mediator”) to assist them in resolving the dispute. In such an instance, (i) each Party agrees to provide the Mediator access to all relevant and non-privileged documents and may impose reasonable confidentiality provisions; (ii) the Parties may make representations and submissions to the Mediator but there shall be no formal hearing unless the Mediator requires a formal hearing and provides a written notice to the Parties; (iii) the Mediator shall make his recommendations in writing as soon as is reasonably possible but not later than thirty (30) days following the receipt of representations and submissions by each Party; (iv) the Mediator’s recommendation shall not be binding upon the Parties, but would become binding upon the Parties if voluntarily accepted by both Parties in writing; and (v) the fees of the Mediator shall be paid equally by the Parties. Following receipt by the Parties of the recommendations made by the Mediator, the Parties shall have ten (10) days, or such longer period as may be mutually agreed by the Parties, to accept said recommendation or a mutually acceptable alternative. Submission of the dispute to the Mediator shall be deemed by the Parties to toll the applicable statute of limitations until the mediation process is concluded. ARTICLE X MISCELLANEOUS 10.1 Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado. 10.2 No Joint Venture or Partnership. No form of joint venture or partnership exists between the Town and the Owner, and nothing contained in this Agreement shall be construed as making the Town and the Owner joint venturers or partners. 10.3 Applicability of Avon Municipal Code. All matters not covered by this Agreement are controlled by the Code to the extent applicable. This Agreement does not prevent the Town from imposing additional requirements not inconsistent with this Agreement as conditions for approval of a subdivision or the granting of a building permit. Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 12 of 15 10.4 Waiver. No waiver of one or more of the terms of this Agreement shall be effective unless in writing. No waiver of any provision of this Agreement in any instance shall constitute a waiver of such provision in other instances. 10.5 Severability. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect so long at the intent of this Agreement is not frustrated. 10.6 Notices. Any notice or communication required or permitted under the terms of this Agreement shall be in writing, may be given by the Parties hereto or such Party’s respective legal counsel, and shall be deemed given and received (i) when hand delivered to the intended recipient(s), by whatever means; (ii) three (3) business days after the same is deposited in the United States Mail, with adequate postage prepaid, and sent by registered or certified mail, with return receipt requested; (iii) one (1) business day after the same is deposited with an overnight courier service of national reputation having a delivery area encompassing the address of the intended recipient, with the delivery charges prepaid; or (iv) when received via electronic mail to intended recipient’s electronic mail address, provided below. Any notice shall be delivered, mailed, or sent, as the case may be, to the appropriate address set forth below: If to Town: Town of Avon Attention: Town Manager P.O. Box 975 Avon, Colorado 81620 Telephone: 970-748-4004 Email: townmanager@avon.org And: Town of Avon Attention: Town Attorney P.O. Box 975 Avon, Colorado 81620 Telephone: 970-748-4001 Email: townattorney@avon.org If to Owner: Lot 3 Mountain Vista LLC And: Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 13 of 15 Each Party may change its addresses and/or email addresses for notices pursuant to a written notice that is given in accordance with the terms hereof. As used herein, the term “business day” shall mean any day other than a Saturday, a Sunday or a legal holiday for which U.S. Mail service is not provided. Whenever any date or the expiration of any period specified under this Agreement falls on a day other than a business day, then such date or period shall be deemed extended to the next succeeding business day thereafter. 10.7 Amendment of Agreement. For the purpose of any amendment to this Agreement, “Owner” shall mean only the Owner as defined herein and those parties, if any, who have specifically been granted, in writing by the Owner, the power to enter into such amendments. No amendment to this Agreement shall be valid unless signed in writing by Owner and Town. 10.8 Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest or the legal representatives of the Parties hereto. The Owner shall have the right to assign or transfer all or any portion of its interests, rights or obligations under this Agreement to an entity or entities formed for the purpose of developing the Property which are managed by an affiliate of the Owner and comprised of affiliates of the Owner. Further, the Owner shall have the right to assign or transfer all or any portion of its interests, rights or obligations under this Agreement to third parties acquiring an interest or estate in the Property, including, but not limited to, purchasers or long-term ground lessees of individual lots, parcels, or of any improvements now or hereafter located within the Property. Notwithstanding the forgoing, any assignee shall fully assume in writing all obligations of the Owner assigned to such assignee and Owner must obtain the Town’s written consent to such assignment, which consent will not be unreasonably withheld or delayed if the Owner has reasonably demonstrated to the Town that the assignee has the financial capability to perform the obligations under this Agreement so assigned. Nothing in this Section shall be deemed to limit or in any way restrict the sale or other conveyance of property within the Property. 10.9 Counterparts. This Agreement shall be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Any electronically delivered counterparts shall have the same force and effect as an “ink-signed” original. 10.10 No Waiver of Governmental Immunity. Nothing in this Agreement shall be construed to waive, limit, or otherwise modify any governmental immunity that may be available by law to the Town, its officials, employees, contractors, or agents, or any other person acting on behalf of the Town and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, Title 24, Article 10, Part 1 of the Colorado Revised Statutes.. IN WITNESS WHEREOF, the Owner and the Town have executed this Agreement as of the date first written above. Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 14 of 15 TOWN OF AVON: _______________________________ Amy Phillips, Mayor ATTEST: ___________________________________ Miguel Casanueva, Town Clerk OWNER: LOT 3 MOUNTAIN VISTA LLC By: ___________________________________ Name: ________________________________ Title: ________________________________ STATE OF COLORADO ) ) ss. COUNTY OF ____________ ) Acknowledged before me this ____ day of _______________ 2023, by ____________________ as ____________________ of Lot 3 Mountain Vista, LLC., a Colorado limited liability company, on behalf of the limited liability company. My commission expires: ____________________________________ Notary Public Development Agreement: Lot 3 Mountain Vista, LLC – Town of Avon June 6, 2023 Page 15 of 15 As to Article V of the Agreement only: UPPER EAGLE REGIONAL WATER AUTHORITY: ________________________________ Dick Cleveland, Chair ATTEST: _______________, Secretary ATTACHMENT C RESTRICTIVE COVENANT THIS RESTRICTIVE COVENANT (the "Covenant") is made and entered into as of ___________________, 2023, by and between Lot 3 Mountain Vista LLC, a Colorado limited liability corporation ("Owner"), and the Town of Avon, a home rule municipal corporation of the State of Colorado ("Town ") (Owner and Town may be referred to individually as "Party" and collectively as "Parties"). RECITALS A. The Owner owns approximately 1.099 acres within the Town that is legally described as Lot 3, Mountain Vista Resort Subdivision, according to the Plat thereof recorded on March 31, 2021 at Reception No. 202109327, Town of Avon, County of Eagle, State of Colorado, and commonly known as 140 W. Beaver Creek Blvd., Avon, CO 81620 (the "Property"). B. The Town's development standards require 1 off-street parking space per accommodation unit for lodging or hotel uses. C. To validate the Owner's proposed parking design, which does not strictly comply with the Town's development standards, the Owner and Town desire to enter into and establish this Restrictive Covenant, which shall burden the Property. AGREEMENT NOW, THEREFORE, in consideration of the recitals set forth above, the terms, conditions, covenants, and mutual promises set forth in this Covenant, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Owner and the Town agree as follows with respect to the Property: 1. Recitals. The foregoing recitals are hereby incorporated into this Covenant and are made a part hereof as if specifically set forth herein. 2. Covenant. The Owner hereby declares and covenants that the Property shall include a full-time valet-only parking operation in substantial conformance with the parking plan, attached hereto and incorporated by reference. 3. Amendment of Covenant. This Covenant shall constitute a covenant running with the land and shall not be amended, modified or terminated without the prior written consent of the Town, and shall be binding on the Parties hereto, and their successors and assigns. In the event of any breach or threatened breach of the terms and conditions of this Covenant, the Town shall have the right to seek specific performance against the Owner. In the event of litigation to enforce any of the terms or provision of this Covenant, the prevailing party shall be entitled to an award of its costs and reasonable attorneys' fees. IN WITNESS WHEREOF, the Owner and the Town have executed this Covenant as of the date first written above. TOWN OF AVON: _______________________________ Amy Phillips, Mayor ATTEST: ___________________________________ Miguel Casanueva, Town Clerk OWNER: LOT 3 MOUNTAIN VISTA LLC By: ___________________________________ Name: ________________________________ Title: ________________________________ STATE OF COLORADO ) ) ss. COUNTY OF ____________ ) Acknowledged before me this ____ day of _______________ 2023, by ____________________ as ____________________ of Lot 3 Mountain Vista, LLC., a Colorado limited liability company, on behalf of the limited liability company. My commission expires: _____________________________________ Notary Public 970.748.4004 eheil@avon.org TO: Honorable Mayor Phillips and Council members FROM: Eric Heil, Town Manager RE: Use Tax Proposal DATE: June 9, 2023 SUMMARY: Consideration of referring a Use Tax on Construction Materials to the November 7, 2023 election is presented to Council. In 2021 and 2022, Council had several presentations and work sessions on Use Tax, Marijuana Tax, and Regional Transportation Authority (“RTA”) Tax. At the May 2022 Council meeting, Council directed Staff to retain a voter polling consultant to study the potential for each of these tax questions to pass with the Avon voters. A voter polling consultant was selected and conducted voter polling in Avon in June & July 2022. The survey results are presented in Attachment A and the Verbatim survey responses are available in Attachment B. The voter polling results indicated community support for the Use Tax’; however, Council decided to focus efforts on the Regional Transportation Authority and took action to only refer the formation of the Regional Transportation Authority to the Avon electorate. The vote on the Regional Transportation Authority was successful. It was acknowledged last August that Council contemplated referring the Use Tax ballot question to the Avon electorate in November, 2023. MARIJUANA TAX: Council had also provided direction to prepare potential regulations and potential location maps for consideration of authorizing retail marijuana businesses. Staff has not had the capacity the prepare draft regulations, mapping or other analytical documents. Staff expects that any legally possible location under federal set-back laws from schools, day care and playgrounds will be very limited at best in Avon. FINANCE COMMITTEE: Staff presented general information on the Use Tax to the Finance Committee on May 3, 2023. The Finance Committee supported Council moving forward to refer the question of the Use Tax to the November 7, 2023 election. VILLAGE (AT AVON): The existing development agreement with Traer Creek LLC contemplates that if a Use Tax is adopted then the revenues would be credited and pledged to Traer Creek Metropolitan District to finance public improvements in the Village (at Avon). Staff has experienced continued complications with attempting to collect the sales tax on construction materials which we will discuss further at the Finance Committee meeting. Additionally, the adoption of a Use Tax can be expected to generate significantly more revenue from new construction than the imposition of the Sales Tax on construction materials. Additional revenues from a Use Tax would accelerate the repayment of debt obligations backed by Town of Avon tax credits in accordance with the Village (at Avon) Development Agreement. RECOMMENDATION: I recommend that Council proceed with considering referral of a Use Tax to the November 7, 2023 election. If Council supports proceeding than Staff will begin providing general information about the Use Tax to the public and will present first reading of an Ordinance referring a Use Tax to the November 7, 2023 election at the July 25, 2023 Council meeting. Thank you, Eric ATTACHMENT A: Ballot Measure Survey PowerPoint ATTACHMENT B: Ballot Measure Survey Verbatim Responses ATTACHMENT C: Use Tax Report May 2022 TOWN OF AVON 2022 BALLOT MEASURE SURVEY JUNE 23 –JULY 1, 2022 METHODOLOGY •Magellan Strategies are pleased to present the results of an online, bilingual survey of 305 registered voters within the Town of Avon, Colorado. •The interviews were conducted from June 23rd –July 1 st, 2022. •The overall survey responses have a margin of error of +/-5.31% at the 95% confidence interval. Population subgroups will have a higher margin of error than the overall sample. •The survey results were weighted to be representative of the voter turnout demographics within the Town of Avon for a midterm election cycle. Do you agree or disagree with the following statement? “The Town of Avon is fiscally responsible and spends taxpayer money wisely.” 59%31% 10% Total Agree Total Disagree Unsure/No Opinion 3 59% 59% 76% 45% 50% 69% 63% 52% 54% 65% 31% 30% 15% 46% 39% 24% 24% 40% 40% 21% 10% 11% 9% 9% 11% 7% 13% 8% 6% 14% Rent Own Dem Rep Unaf 65+ 45-64 18-44 Men Women Total Agree Total Disagree Unsure/No Opinion Strongly Agree 12% Somewhat Agree 47% Strongly Disagree 14% Somewhat Disagree 17% 4% USE TAX BALLOT TEST Before we continue, it is important to understand that no decisions have been made by the Town of Avon to put any tax ballot measures before voters for any purpose this November. Your participation in this survey and sharing your honest opinions will influence those decisions. Let’s continue… The Town is considering three different ballot measures for this November’s election. One ballot measure would replace the Town’s current 4% sales tax on construction materials with a 4% Use Tax. Avon is the only town in Eagle County without a use tax. Collection of a Use Tax is much more efficient for both contractors and the Town. In addition, this 4% Use Tax would have an annual $50,000/year exemption to exclude small home improvement projects. The revenue generated by this tax would be allocated to the Town’s general fund. If an election were held today, would you vote yes and approve a 4% Use Tax on construction materials, or would you vote no and reject it? 4% Use Tax Ballot Test “If an election were held today, would you vote yes and approve a 4% Use Tax on construction materials, or would you vote not and reject it?” 5 47% 31% 22% Total Yes, Approve Total No, Reject Undecided Definitely Yes, Approve 11% Probably Yes, Approve 15% Lean Toward Yes, Approve 21% Definitely No, Reject 15% Probably No, Reject 8% Lean Toward No, Reject 8% 28% 55% 57% 27% 47% 61% 47% 43% 46% 49% 30% 29% 15% 51% 34% 25% 35% 28% 36% 23% 42% 16% 28% 22% 19% 14% 18% 29% 18% 28% Rent Own Dem Rep Unaf 65+ 45-64 18-44 Men Women Total Yes, Approve Total No, Reject Undecided 5% RETAIL TAX ON MARIJUANA BALLOT TEST Another ballot measure that the Town is considering is a 5% retail tax on marijuana to match the tax in Eagle County. Although the Town currently does not allow marijuana businesses or retail sales, if this tax passes, the Town would adopt regulations to allow a limited number of marijuana businesses only in designated areas. The revenue from the Marijuana Tax would be allocated to Community Housing, Recreation, and Community Health. If an election were held today, would you vote yes and approve a 5% retail tax on marijuana, or would you vote no and reject it? 5% Retail Marijuana Tax Ballot Test “If an election were held today, would you vote yes and approve a 5% retail tax on marijuana, or would you vote no and reject it?” 7 71%25% 4% Total Yes, Approve Total No, Reject Undecided Definitely Yes, Approve 41% Probably Yes, Approve 19% Lean Toward Yes, Approve 11% Definitely No, Reject 17% Probably No, Reject 5% Lean Toward No, Reject 3% 68% 74% 81% 50% 74% 72% 68% 74% 67% 77% 32% 20% 14% 48% 22% 26% 27% 23% 30% 18% 0% 6% 5% 2% 4% 2% 5% 3% 3% 5% Rent Own Dem Rep Unaf 65+ 45-64 18-44 Men Women Total Yes, Approve Total No, Reject Undecided 0.5% SALES TAX INCREASE TO SUPPORT RTA BALLOT TEST As you may know, Eagle County and the towns of Avon, Eagle, Gypsum, Minturn, Red Cliff, Vail, and the Beaver Creek Metro District have collectively pursued the formation of a Regional Transit Authority (RTA). These entities are currently considering a 0.5% sales tax increase and a 0.6% lodging tax increase to support enhanced transit service. A 0.5% sales tax increase in Avon would apply to all retail, including groceries. If an election were held today, would you vote yes and approve a 0.5% sales tax increase to support the RTA, or would you vote no and reject it? 0.5% Sales Tax Increase for RTA Ballot Test “If an election were held today, would you vote yes and approve a 0.5% sales tax increase to support the RTA, or would you vote no and reject it?” 9 35% 59% 6% Total Yes, Approve Total No, Reject Undecided Definitely Yes, Approve 5% Probably Yes, Approve 11% Lean Toward Yes, Approve 19% Definitely No, Reject 31% Probably No, Reject 10% Lean Toward No, Reject 18% 34% 36% 40% 34% 30% 49% 36% 29% 40% 29% 66% 56% 53% 66% 62% 47% 57% 65% 57% 62% 0% 8% 7% 0% 8% 4% 7% 6% 3% 9% Rent Own Dem Rep Unaf 65+ 45-64 18-44 Men Women Total Yes, Approve Total No, Reject Undecided 0.6% LODGING TAX INCREASE TO SUPPORT RTA BALLOT TEST A 0.6% lodging tax increase in Avon would apply to all lodging, including commercial hotels and short-term rentals. If an election were held today, would you vote yes and approve a 0.6% lodging tax increase to support the RTA, or would you vote no and reject it? 0.6% Lodging Tax Increase for RTA Ballot Test “If an election were held today, would you vote yes and approve a 0.6% lodging tax increase to support the RTA, or would you vote not and reject it?” 11 74% 24%2% Total Yes, Approve Total No, Reject Undecided Definitely Yes, Approve 33% Probably Yes, Approve 22% Lean Toward Yes, Approve 19% Definitely No, Reject 14% Probably No, Reject 4% Lean Toward No, Reject 6% 72% 77% 71% 71% 79% 76% 69% 77% 78% 71% 28% 20% 25% 29% 19% 24% 27% 21% 20% 27% 0% 3% 4% 0% 2% 0% 4% 2% 2% 2% Rent Own Dem Rep Unaf 65+ 45-64 18-44 Men Women Total Yes, Approve Total No, Reject Undecided 0.6% LODGING TAX INCREASE TO SUPPORT RTA BALLOT TEST (INFORMED LODGING TAX IS HIGH) As you may know, the total tax on lodging in Avon is high at 12.4% (4% Avon lodging tax, 4% Avon sales tax, 1% Eagle County sales tax, 0.5% Eagle County Transit, 2.9% State of Colorado sales tax). Knowing this, if an election were held today, would you vote yes and approve a 0.6% lodging tax increase to support the RTA, or would you vote no and reject it? 0.6% Lodging Tax Increase for RTA Ballot Test (After Informed Lodging Tax is High) “If an election were held today, would you vote yes and approve a 0.6% lodging tax increase to support the RTA, or would you vote not and reject it?” 13 58%36% 6% Total Yes, Approve Total No, Reject Undecided Definitely Yes, Approve 24% Probably Yes, Approve 17% Lean Toward Yes, Approve 17% Definitely No, Reject 18% Probably No, Reject 9% Lean Toward No, Reject 9% 65% 55% 62% 57% 55% 53% 49% 66% 60% 55% 35% 36% 33% 42% 37% 42% 42% 30% 35% 38% 0% 9% 5% 1% 8% 5% 9% 4% 5% 7% Rent Own Dem Rep Unaf 65+ 45-64 18-44 Men Women Total Yes, Approve Total No, Reject Undecided 1.2768 MILLS PROPERTY TAX INCREASE TO SUPPORT RTA BALLOT TEST An alternative to a lodging tax increase to support the RTA is a property tax increase. The total mill levy for property in Avon is 62.346, which includes the Town of Avon’s mill levy of 8.956. A property tax mill levy of 1.2768 mills would generate the same revenues as a 0.6% lodging tax. The cost for this increase would be $68.47 per year on a home valued at $750,000. If an election were held today, would you vote yes and approve a 1.2768 mills property tax increase to support the RTA, or would you vote no and reject it? 1.2768 Mills Property Tax Increase for RTA Ballot Test “If an election were held today, would you vote yes and approve a 1.2786 mills property tax increase to support the RTA, or would you vote not and reject it?” 15 26% 68% 6% Total Yes, Approve Total No, Reject Undecided Definitely Yes, Approve 5% Probably Yes, Approve 6% Lean Toward Yes, Approve 15% Definitely No, Reject 38% Probably No, Reject 17% Lean Toward No, Reject 13% 43% 20% 27% 24% 24% 17% 24% 30% 26% 26% 53% 73% 64% 71% 71% 77% 68% 65% 68% 67% 4% 7% 9% 5% 5% 6% 8% 5% 6% 7% Rent Own Dem Rep Unaf 65+ 45-64 18-44 Men Women Total Yes, Approve Total No, Reject Undecided Voter Preference for Lodging or Property Tax to Support RTA “Which tax do you think is best for Avon to support the RTA?” 16 47% 9% 29% 15% 0.6% Lodging Tax Increase 1.2768 Mills Property Tax Increase Would Not Vote for Either Undecided 25% 57% 50% 23% 58% 48% 55% 42% 43% 54% 9% 8% 11% 6% 8% 7% 13% 6% 9% 8% 44% 22% 23% 48% 25% 25% 25% 33% 32% 24% 22% 13% 16% 23% 9% 20% 7% 19% 16% 14% Rent Own Dem Rep Unaf 65+ 45-64 18-44 Men Women 0.6% Lodging Tax 1.2768 Mills Property Tax Neither Undecided Verbatim Responses148 RESPONDENTS PROVIDED ADDITIONAL THOUGHTS ON THE BALLOT MEASURES "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Themes Taxes are too high, now is not the time to raise them Too expensive to live in Avon, residents want affordable housing solutions and want Town to deal with STRs Question whether RTA would benefit them (Particularly Wildridge/Wildwood) Vocal minority against retail marijuana in Avon “Every single election has tax increase measures included, every single one! Give it a rest!” -Male, 65+, Democrat, Hurd Lane “Taxes are high enough. The town should figure out how they can be more efficient with the money they have. Does everyone work as hard as they can?” -Male, 65+, Republican, Town Core “Voters need a better idea of what the regional transportation partnership would provide.” -Male, 35-44, Democrat, Wildridge “Because transit ignores Wildridge/Wildwood, I would probably reject any tax increase unless it includes this large residential area of Avon.” -Female, 55-64, Unaffiliated, Wildwood “Don’t tax the locals.” -Female, 35-44, Republican, West Avon “Please spend wisely. Do not spend more on infrastructure now. Do not spend more on art/statues. Locals need help and places to live.” -Female, 55-64, Unaffiliated, West Avon SURVEY DEMOGRAPHICS 47% 52% 1% Female Male Identify Differently 44% 36% 18% 2% Unaffiliated Democrat Republican Other Party 74%22% 4% White Hispanic Other 18-24 25-34 35-44 45-54 55-64 65+ 2% 24% 21%18% 19% 16% SURVEY DEMOGRAPHICS 60%32% 8% Married Single Prefer Not to Say 68%26% 6% Own Rent Other Wildridge West Avon Nott. Park Northside Town Core Vill. At Avon Hurd Lane Wildwood East Core Mtn. Star Other 38% 12%9%9%8%6%6%4%3%2%3% MAGELLAN STRATEGIES (303) 861-8585 WWW.MAGELLANSTRATEGIES.COM DAVID FLAHERTY COURTNEY SIEVERS RYAN WINGER Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 1 Sex Age Range Party Housing Neighborhood Response M 65+U Oth.East Core Increasing taxes during a period of high inflation is probably questionable. I understand the need but question the timing. F 65+D Own East Core Fund RTA from existing revenue sources. If this is a priority for Avon, then fund it as a priority. Don't use RTA as an excuse to raise our taxes in these expensive and difficult times. M 55-64 O Rent East Core Chicago was built on high taxes Only criminals are left there now F 35-44 U Rent East Core No more taxes M 35-44 U Rent East Core Housing is fucked, the valley is dying F 45-54 D Own Hurd Lane Too many increases on one ballot will be tough. F 55-64 D Own Hurd Lane I do not want pot shops in our town. F 55-64 D Own Hurd Lane Im glad the public transportation in the Valley is being worked on. Its in real need of overhaul to be useable. F 55-64 D Own Hurd Lane Taxes are already high. F 65+D Own Hurd Lane I think added sales tax to support RTA would be regressive on the people who need the system the most. I would prefer other sources of revenue to fund a regional RTA-which I believe is a necessary arrangement for the future. A fully integrated county transit system is a must. M 65+D Own Hurd Lane Every single election has tax increase measures included, every single one! Give it a rest! F 45-54 U Own Hurd Lane No to all drug shops in Avon. Do not approve sales of drugs in our town. The smell, tje misuse and not the image we should have for our community and families. No, NO, NO!! Clean up the parks please. I love dogs, but why do people never clean up after their dogs. And why are the off leash on my property?? If you cannot maintian this... how will you control the open use of drugs? No to any of this in Avon!! M 45-54 U Own Hurd Lane I think raising taxes on groceries is poor way to subsidize buses. Can the people who use the buses to get to work afford to ride the bus if their grocery bill goes up too much? F 55-64 U Own Hurd Lane How about a tax increase on vacant commercial space. M 55-64 U Own Hurd Lane A lodging tax would mostly impact visitors to the area who have more disposed income. The other tax options impact locals who are already struggling and pay high sales and property taxes. F 65+U Own Hurd Lane As a Senior with diminishing income I would find any tax increase a great burden; this year the property tax on my home increased almost $2000 over the prior year, as several homes in my neighborhood sold for $million+, probably a 30%-50% increase over prices before Covid Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 2 Sex Age Range Party Housing Neighborhood Response F 45-54 D Rent Hurd Lane Tax the hell of the out of towners. Too many people here. Its getting out of hand. Locals cant live a peaceful life anymore due to greed. Tax those who dont live here. M 55-64 D Own Mtn Star We are headed towards a recession. Inflation is at a 40 year high. Gasoline is at a high. The idea of taxing people more now seems wildly inappropriate for anything other then optional items like marijuana consumption. F 65+D Own Mtn Star Current taxes are too high. It is too expensive to live in this valley. Avon is not an attractive town. It is not pedestrian friendly. The retail shops are mediocre, with little to offer to locals or visitors. M 55-64 R Own Mtn Star Spending money on more transit is wasteful and I would not support any tax increase to fund it. F 65+R Own Mtn Star Avoid ALL tax increases!!!! M 65+U Own Mtn Star Stop raising taxes and operate the town more efficiently. For example, what in the world is that ridiculous walkway recently constructed under I-70 most likely at Avons expense? Of what benefit is that to the common good? M 35-44 U Oth.Northside No need for any more tax increases, specially seeing how much prices are rising! M 35-44 D Own Northside Would just like to research and see what options are F 45-54 D Own Northside Please focus on employee housing and affordable housing! F 55-64 D Own Northside The full time local population in Avon is suffering enough from the expansion of short term rentals and the demands they put on the infrastructure. Any tax increase should be directed towards these uses. F 35-44 R Own Northside The 2% RETT is plenty for TOA. They have more than enough funds if spent wisely. No need to increase taxes ever. Reallocate the current ones. We pay enough in taxes. M 55-64 R Own Northside Don't want Marijuana sales in Avon. M 45-54 U Own Northside Our citizens are struggling enough to survive in an overly inflated economy and exorbently priced community. At the same time skier visits and tourism increases overwhelmingly every year. Pass this cost to the hotels and STRs and leave the working class citizens of Avon alone F 55-64 U Own Northside Tax the short term rentals to offset the cost of these uses both in terms of consumption of resource and infrastructure as well as the loss of long term housing. F 55-64 U Own Northside Would like to know the RTA ridership #s at Avon compared to total eagle county and other eagle county towns Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 3 Sex Age Range Party Housing Neighborhood Response M 55-64 U Own Northside Avon has no attraction any longer, half the retail with numerous storefronts empty, half the restaurants and bars yet more banks and pharmacies.. This town sucks to live in now? M 55-64 U Own Northside Half the retail, half the bars and restaurants, and you continue to confuse drivers with the mid road islands that solve no traffic issues. Its not fun to live here any longer. M 65+U Own Northside I support RTA and housing initiatives, in general. Would like to see a TOA and/or a sticker for residents to allow winter parking in town. F 35-44 D Own Nott. Park A tax credit would be a nice way to increase housing for our locals needing housing. F 35-44 D Own Nott. Park I think employers who dont offer employee parking should contribute to RTA in some way. F 35-44 D Own Nott. Park I would say the town manager is doing a terrible job and the town of Avon pays peanuts compared to other towns in our area. We probably pull in more tax $ to pay our town employees better than most other municipalities. Its embarrassing. Do your job better. F 45-54 D Own Nott. Park The way this survey is worded is highly subjective to get the answers the survey writer wants. I suggest unbiased surveys going forward if you care what the voters think. M 65+D Own Nott. Park The town transportation structure seems very good at present . If it's current budget is not adaquate I would look elsewere for funding or cut some transport ptions ... M 45-54 R Own Nott. Park No more taxes M 45-54 R Own Nott. Park Reduce or maintain the budget for transit - do not tax people who dont use it. That is redistribution of wealth and anti-American! M 35-44 U Own Nott. Park Heavily tax STRs M 35-44 U Own Nott. Park I think taxing second home owners a higher rate would solve taxing issues and funds. Currently we have the lowest tax for second homeowners in the country F 45-54 U Own Nott. Park Surely you can be more creative with the existing budget than just raising taxes M 45-54 U Own Nott. Park Would like to understand what RTA improvements would be implemented. F 55-64 U Own Nott. Park Taxes in Avon are already to high!!! F 25-34 D Rent Nott. Park No but will definitely be researching more before the election. F 35-44 D Rent Nott. Park Put a moratorium on short term rentals while the housing issue is addressed. Sun ridge and liftview have gone from mostly local workers to mostly short term rentals and is only getting worse. M 45-54 D Rent Nott. Park I dont know if the short term rentals such as vrbo, Airbnb, etc. are taxed at the same rate as say a hotel room, but would like it to be the same tax rate across the board. Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 4 Sex Age Range Party Housing Neighborhood Response F 25-34 U Rent Nott. Park As a renter, would these taxes just be an additional way for rent prices to increase and a way for which tenants to cover the costs for those providing the rentals F 25-34 U Rent Nott. Park Please stop raising our taxes. It is already expensive enough to live here and you are driving our home owners taxes up, our local working class out of the valley. Cut spending, Cut salaries and Cut the taxes. Raising taxes isn't the answer its the problem. M 25-34 U Rent Nott. Park Short term rentals are killing our town. Tax them and build employee housing or affordable housing or there will be no workers to run the businesses the tourists require. M 35-44 U Rent Nott. Park Build actual houses that people can afford that work here U 35-44 U Rent Nott. Park Stop being woke. Nobody cares about your political virtue signaling. You all care for the rich elites and have zero priorities for blue collar workers. M 35-44 U Oth.Other Yes, decrease spending in other areas and redirect those funds to the RTA F 55-64 D Own Other It is already expensive enough to live in the Vail Valley for locals. Visitors will continue to come and, eventhough taxes on rentals are high, another .6 doesn't seem like it would make a huge difference to someone coming for vacation. M 65+D Own Other We're fully taxed up. Visitors also use RTA, let them pay for it. Equally important, look at competitive ski markets and stay at par or below in our tax structure. U 35-44 O Own Other Stop making it so challenging for people to live in Avon full-time. Provide public transportation that is convenient and useful for locals. Stop making locals pay for parking to ski at Beaver Creek. Start ticketing visitors who park their cars in illegal spots and in insane manners. Allow the town to have marijuana stores, we sell cigarettes and alcohol freely, what's the difference? Tax the heck out of it and use the tax money for useful things like public transportation, housing, schools and teacher salaries. This is a ridiculous conversation for our town council. F 55-64 R Own Other I do not want Pot stores in Avon... they work great in the Green Mile and it's not essential to have them in Avon. Have you done a survey to see if residents want Pot stores to bring in unsavory types off the highway to our nice town? Before you approve and cannot undo your idea of weed in Avon, please consider how nice Avon is without these establishments. Also, the Nottingham Park parking is small and where to park is confusing and needs better signage or publicity. Parking along the road is illegal? Where are people supposed to park then? Also, how much of a shortfall for RTA is there... this survey does not inform. Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 5 Sex Age Range Party Housing Neighborhood Response F 45-54 U Own Other DO NOT VOTE for DRUGS in our community! Do not allow the sales here. Please it is a problem already in our County. we would need more police, more fire prevention and mental health. Keep our community clean!! U 45-54 U Own Other What about forcing employers with more than 25 employees to have to offer employee housing. M 25-34 O Rent Other I think the RTA is one of the most important things for this town U 55-64 U Rent Other Spend less! M 65+U Oth.Town Core No more taxes M 65+R Own Town Core Taxes are high enough. The town should figure out how they can be more efficient with the money they have. Does everyone work as hard as they can? M 35-44 U Own Town Core Be more responsible with the budget in place. Waste less M 35-44 U Own Town Core What happened to the guy with the hat and glasses? M 35-44 U Own Town Core Yes. Be more Fiscally responsible instead of not being so and passing the irresponsibility on the tax payer continuously. Private businesses have to do it M 55-64 U Own Town Core Transit should be funded by users Make it easier for builders to build affordable housing M 45-54 D Rent Vill. at Avon Rents continually rise so I have no problem voting for tax increases too, especially property taxes. M 25-34 U Rent Vill. at Avon Need more measurements so that tax increase goes to eagle county school district M 35-44 U Rent Vill. at Avon Be careful not to tax too much. M 45-54 U Rent Vill. at Avon Thanks for asking for our input F 55-64 U Rent Vill. at Avon Citizens do not need any more taxes & expenses. Elected Public Officials need to be better stewards of the PEOPLES money instead of constantly raising taxes. We need a safer crossing at the westbound I-70 on-ramp from Nottingham Rd. before a pedestrian or cyclist gets killed. As a motorist one is looking to the left for oncoming traffic while merging and are blindsided by pedestrians/cyclist who come out from behind the trees on the right, assuming full right of way. It is very dangerous! U 25-34 U Oth.West Avon I dont believe marijuana should be sold within the town limits. F 35-44 R Own West Avon Don't tax the locals. Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 6 Sex Age Range Party Housing Neighborhood Response M 45-54 R Own West Avon I support taxes that help make living in/around Avon more affordable to support the population the local businesses need to offer a great resident and visitor experience. Local residences support businesses year round through property and sales tax, so I'd prefer to use peak visitation periods to shore up the difference. F 45-54 U Own West Avon STOP wasting money. I would get rid of the entire town council if I could. Maybe I will. F 55-64 U Own West Avon Maybe if you promise to improve a bridge on W Beaver Creek Blvd so pedestrians don't get sprayed with slush mg chloride, slip and slide on ice , have to run over the road as there is no sign of crossing and don't have to jump out of the way when groups of bicikling tourists ride over, instead of fixing the overwhelmingly useless stage. Maybe than I would vote for increasing. F 55-64 U Own West Avon Please spend wisely. Do not spend more on infrastructure now. Do not spend more on art/statues. Locals need help and places to live. F 55-64 U Own West Avon Re allocate what you have. Do not increase taxes. You do not spend the money wisely as it it! F 55-64 U Own West Avon We are over taxed. It is getting difficult for a citizen keep going and over work to keep going even when it is time to retire, because you didnt save enough. I know we need a public transportation that will help the mobility of working force and less use of our cars. I think we need be better in management of our funds and priorities and reduce costs. As society we can not see only to tax the citizens, maybe here revenue of services like maybe parking spaces with roof tops with electric solar panels, for charging station and obtain revenue for it. Or even charge the electric buses and reduce cost for the transportation. M 55-64 U Own West Avon Anti tax be responsible with what you have F 65+U Own West Avon Would like more info on the marijuana tax or more specific info to allow shops in Avon to do business. F 35-44 D Rent West Avon Limit Short Term Rentals, yes to free buses to Vail M 25-34 U Rent West Avon You could also consider cutting spending. The shows at Nottingham are nice but definitely eat up a lot of funding. M 25-34 D Oth.Wildridge Sliding Scale for property tax for value and residency: full-time residents and lower value property exempt, vacation home, and higher value homes (>$1,000,000) taxed U 65+U Oth.Wildridge This isnt a survey - it is a pro tax campaign item Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 7 Sex Age Range Party Housing Neighborhood Response F 35-44 D Own Wildridge I STRONGLY OPPOSE retail marijuana in Avon. It sends an unhealthy message to children and families about health priorities and norms that our community values. Folks who want marijuana can purchase down the street in EagleVail without it being promoted right in the faces of local children and teens. The language in the survey question is very tricky- if retail marijuana was approved in Avon of course a tax would be helpful (and expected, especially to offset health strategies). Avon voters expressed strong opposition to marijuana sales in town in the past and you should have separated survey questions on retail marijuana and marijuana sales tax. I would prefer lodging tax as it wont impact local residents as much in the taxing, yet we would benefit. Plus I dont think an additional 4% lodging tax would sway guests against staying in Avon. M 35-44 D Own Wildridge I hope the rta will help residents in wildridge M 35-44 D Own Wildridge Voters need a better idea of what the regional transportation partnership would provide. M 35-44 D Own Wildridge Will there be any bus service to Wildridge and Wildwood? If not, this looks like it could be a tax on locals for the benefit of tourists depending on the funding source when it reaches the ballot. If you are going to ask locals for money, there should be a benefit to them by increasing services that they can use. F 45-54 D Own Wildridge Stop looking for more ways to make it much expensive to live in happy valley. Users should pay for public transportation. The town should make it easier for developers to build apartments that are more affordable. F 45-54 D Own Wildridge Use some of the money to protect more open land that is used for animal habitats, community members & wildland fire protection (ie:2332 Fox Lsne). Thank you F 55-64 D Own Wildridge I will look for more information about RTA and its operation before I would decide how to vote. I like the idea of RTA. My biggest concern is still workforce housing. I wish I had a good solution. F 55-64 D Own Wildridge No no no on any tax increase. Property taxes already increasing dt inflation on homes. On a fixed income & do not want to be priced out of valley I have spent 40 years in. F 55-64 D Own Wildridge Please, no dispensaries in Avon! Eagle-Vail just makes sense. If you assume RTA is used most by visitors and shift workers, taxing property owners makes zero sense. Taxing groceries makes even less sense! Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 8 Sex Age Range Party Housing Neighborhood Response M 55-64 D Own Wildridge Id be more inclined to pay higher taxes if it would provide more free parking so that we could use RTA more. M 55-64 D Own Wildridge Stop profligate spending and ridiculous projects ans theres be more money for regional transit and social programs. Nottingham Barn? Bandshells? Cmon. F 65+D Own Wildridge I am very excited about the new pickleball courts! F 65+D Own Wildridge Much of the full time residents have no access to the transit service. Residents of Wildridge, Wildwood, etc need to drive to Avon AND park to use the current transit system. F 65+D Own Wildridge Thanks for asking our opinion. A lodging tax to support transit makes sense so workers have a way to get to work without having to drive and park, visitors can do without their cars, too. M 65+D Own Wildridge Your survey is so far from the elections that no information from pro & con is available, so personal opinions are difficult to make F 55-64 O Own Wildridge Get off my wallet. F 55-64 R Own Wildridge I believe that all tax increases need to be investigated. Taxes keep going up and it is the family that work here covering all of the increases, and sooner than later, that well is going to dry up..... there has to be a better way to cover costs than to just keep increasing taxes and to put the individuals who use the services to pick up the cost. M 55-64 R Own Wildridge A best practice for the election is to explicitly state what the RTA would do, benefits, costs, etc. Tell exactly how money would be spent and what RTA transit will look like. Would any of the town transit functions fold into this RTA? Are there economis of scale, accounting, maintenance functions etc. that will become more efficient? Or folded into RTA? Under promise and over deliver. If it passes let citizens know how you are progressing vs. stateed goals, costs, functionality etc. Be super transparent. Right now this is an ephemeral RTA, need tons if substance behind it to go to voters to get it passed. M 55-64 R Own Wildridge AVON NEEDS TO STOP SPENDING MONEY ON EVERYTHING and work on the roads M 55-64 R Own Wildridge Focus on fire egress from Wildridge not preserving the mayors family barn! M 55-64 R Own Wildridge More sales and property taxes will further hammer locals already living on the margin. M 55-64 R Own Wildridge No more taxes for the locals! M 55-64 R Own Wildridge Why support transportation that only serves 1/4 of the towns square miles? F 65+R Own Wildridge Given the economic downturn, you should carefully consider asking residents for more money. F 65+R Own Wildridge No, but what about considering the wildridge fire house for a teen rec center Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 9 Sex Age Range Party Housing Neighborhood Response M 65+R Own Wildridge Avon total taxes are already TOO HIGH!!! M 65+R Own Wildridge Rather than raise taxes, consider cutting city services excluding police and fire. M 65+R Own Wildridge With inflation the dollars to the city will increase substantially without a change in the tax percentage. M 25-34 U Own Wildridge If the sales tax increase excluded groceries I would be more inclined to vote yes for it M 25-34 U Own Wildridge The sales tax is already very high F 35-44 U Own Wildridge Instead of increasing taxes, allocate the money set aside for the e-bike rebates to people who purchase an e-bike to the RTA. E-bikes are a luxury good and that rebate only serves a select number of people that can afford a $2-3k bike at minimum after taxes and shipping. Plus for many locals working in the Valley it is impractical to use an e-bike to commute to and between the 2-3 jobs we hold around the Valley just to be able to afford to pay for a roof over our head. This limitation is particularly evident in the Winter and mud seasons when it would require purchasing warm clothes and gear for the bike to keep warm and safe in icy conditions. Use of an e-bike is practical for maybe 6 months out of the year before the mornings are very cold, its snowy/icy, or evening light is short. Even though RTA only serves a segment of our market, it serves the segment you should be focusing on because its an actual need for the transportation to get to work every day and make our Valley a destination resort people want to visit. F 35-44 U Own Wildridge What about something for employee housing? Is there something that can be done about the abhorrent mail service in Avon? M 35-44 U Own Wildridge Areas that been declared short term rentals need to remain as potential short term rentals. Areas(eagle-vail/wildridge/wildwood) need to have a closer eye placed upon them. F 45-54 U Own Wildridge I do not support increasing the cost of living (groceries, etc) for residence during a time of high inflation. Nor do I support increase property taxes to communities that would NOT benefit from the Regional Transit Authority (aka Wildridge, etc). These community members still need to drive and park somewhere to access public transportation and the system does not have a good plan for parking at transit hubs. I feel that the increase in visitors need to pick up the additional costs as we are continuously pricing out our workforce from this community. Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 10 Sex Age Range Party Housing Neighborhood Response M 45-54 U Own Wildridge I understand the need for funding. However, before increasing taxes, I would like to the Town be more fiscally responsible with its current expenditures. The Town tends to spend money on things versus investing in improvements and events which have a long term ROI. For instance, the Town spends on landscape enhancements which are great, but fails to budget for the proper maintenance of the landscaping. Any sales tax increase should exempt groceries. I believe Vail did this recently for housing and look at what they are accomplishing. M 45-54 U Own Wildridge It would be a better idea to charge per ride or buy a pass for the additional RTA services. M 45-54 U Own Wildridge Possibly a mix of lodging and mill levy M 45-54 U Own Wildridge Tax are high enough! F 55-64 U Own Wildridge A brief explanation of this unconventional approach to gauge public opinion, included just prior to the survey, would have been helpful. The marijuana tax question was misleading, th/ anyone against marijuana sales in Avon would be against a tax. Marijuana sales in a family resort town is a very bad idea. F 55-64 U Own Wildridge I've lived in Avon over 3p. It's upsetting to see neiborhoodz ruined by short term rentals. Hots are loosing g .oney and these visitors are complexly unaware of the noise level and disregard for residents who work every day. Enough. F 55-64 U Own Wildridge This is not the time to raise taxes. M 55-64 U Own Wildridge I agree with a county wide bus system. I think it would be much more efficient than three or four separate bus systems. I don't agree with a rise in property tax to fund it. Most people look at it as an affordable increase of a few bucks a month on their property tax when the real burden is on the commercial property owners who pay substantially more in taxes and pass that increase onto their tenants, forcing tenants to raise prices on their goods and services. M 55-64 U Own Wildridge Lower my taxes, I'm taxed enough already. F 65+U Own Wildridge Avon is over taxing now. M 65+U Own Wildridge I support the RTA concept. Good reliable transit would support down valley housing options while decreasing auto usage. M 65+U Own Wildridge Living in Wildridge makes using public transportation a bit more inconvenient. M 65+U Own Wildridge The question on Marijuana conflates two issues - there should be two questions - 1) should Avon allow the sale of the drug and 2) should it be taxed more than other products if sold in the town? Thankyou Town of Avon 2022 Ballot Measure Survey "Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?" Town of Avon 2022 Ballot Measure Survey 6/23/22 -7/01/22 305n, +/- 5.31% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 11 Sex Age Range Party Housing Neighborhood Response M 65+U Own Wildridge Too many ballots M 65+U Own Wildridge Your history has shown on issues like the barn, that you do not know how to responsibly spend the money you now collect. I see no reason to allow you to impose any more or increased taxes of any kind whatsoever M 25-34 D Rent Wildridge Stop purchasing statues. M 45-54 D Rent Wildridge Whichever way you go, thank you for being responsible with the town's tax-based revenue. Be honest and be fair. Thank you! F 55-64 D Rent Wildridge In light of the looming recession, the residents of Avon cant take more tax hits. The price of everything has increased. Rental costs are off the charts in the valley. I will not support taxes that will really be felt by local workers and families. M 25-34 R Rent Wildridge No more taxes. F 35-44 R Rent Wildridge The transit system is most used by tourists. That should be passed on to them. F 45-54 D Own Wildwood Be smart F 25-34 U Own Wildwood Property tax increases should have exemptions for lower and middle-income permanent residents and landlords with long-term leases. Tax the living daylights out of the 2nd home owners but do not make it any more expensive to live here. F 55-64 U Own Wildwood Because transit ignores Wildridge/Wildwood I would probably reject any tax increase unless it includes this large residential area of Avon. F 55-64 U Own Wildwood Please remember that Avon is already an expensive place to own or rent as you plan to move forward. F 55-64 U Own Wildwood Yes deed restriction housing. I live in one and this is keeping me in a state of poverty. It needs to revised M 65+U Own Wildwood Why do you always need to raise taxes? Why dont you cut spending. [970] 748-4055 swright@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Scott Wright, Finance Director; Eric Heil, Town Manager RE: Use Tax on Construction Materials DATE: April 27, 2022 SUMMARY: This report is a follow-up to last year’s presentations to Council regarding use tax on construction materials. Last year’s report, which is attached to this report as Attachment C, introduced to Council a possible means for funding Community Housing projects through the assessment of a use tax on construction materials. The report also provided an analysis of the various other types of use taxes, including motor vehicle use tax and consumer use tax. Neither of these were recommended or pursued by staff or Council. Ultimately Town Council decided to place on the November 2021 ballot a 2% Short -term Rental Tax to be earmarked for Community Housing and the idea of a use tax on construction materials was requested by Council to be brought back for discussion in 2022. This report uses the report from last year as a foundation with a few key revisions. First, since the 2% Short - term Rental Tax Community housing passed last year, it is staff’s recommendation to no longer earmark the revenues that would be collected from the proposed use tax. Secondly, staff has addressed the concern of some Council members regarding the impact to local citizens and is recommending an exemption of the collection of a use tax on projects requiring a building permit of less than $50,000. Implementing a use tax on construction materials is a change in tax policy that increases revenues and as such would be required to be approved by the Town’s electorate in a TABOR election. Critical dates pursuant to TABOR include the following: (1) August 9. Last regularly scheduled Town Council meeting to introduce first reading of an ordinance to refer ballot question and self-execute implementation of use tax upon approval. (2) August 23 Last regularly scheduled Town Council meeting in which to adopt a resolution certifying ballot content to the County Clerk and Recorder. (3) September 7. Last day to certify the ballot content to the County Clerk and Recorder. (4) November 8. General Election. BACKGROUND: A large number of cities and counties in Colorado levy a use tax on building materials including Eagle, Gypsum, Vail, Steamboat Springs and Grand Junction . The benefits of a use tax on construction materials include the following: (1) Generates fairness and simplicity in the imposition of the tax; (2) Helps to eliminate unfair competition using tax rates as a reason to shop outside of Avon; (3) Reduces tax liabilities for sub-contractors; (4) Retains tax dollars in the community where the burden on Town facilities and services is placed; (5) Eases the administrative burden of collection; Current Methodology for the Collection of Sales Tax on Building Materials The Town of Avon imposes a sales tax on building materials. However, the administrative burden of collection is extremely high and very ineffective. Most of the current collections of sales tax on construction materials is generated and remitted Page 2 of 3 by located Avon retailers such as Home Depot, and local Eagle County retailers such as Edwards Building Supply due to the fact that they have established physical nexus with the Town of Avon. For example, when a purchase is made from Edwards Building Supply and the materials are to be delivered into Avon, the retailer will collect and remit Avon sales tax. The administrative burden (and headache for contractors and developers) comes from project whereby the materials are being purchased from outside of Eagle County or the State of Colorado Sales tax is not typically collected on these materials by the vendor. In these instances, sales tax would be due to the Town by either a general contractor or sub-contractor at the time the materials are delivered to the job site. The fact of the matter is that most of the time tax is not remitted to the Town and Town staff has little or no knowledge of the transactions taking place in order to follow-up with the contractor. And if staff does have the information, it is often very difficult to track down out-of-town contractors or to have any sort of leverage to require them to remit the taxes due. Construction Materials Use Tax A construction use tax is a form of use tax levied on building materials. The use tax is collected at the time a building permit is issued. The use tax amount is determined by multiplying the use tax rate by the cost of the building materials using a predetermined formula. A common method is to determine that the cost of building materials to be fifty percent (50%) of the total valuation of the construction project. The builder then provides the building permit to the materials supplier to prove that use tax has already been paid, and then is exempt from paying a corresponding municipal sales tax in other locations. The administrative burden of collection under a use tax methodology is greatly reduced. In addition, the Town would have the authority when necessary to reconcile the final cost of a project versus the initial value placed on the project for permit purposes. FINANCIAL CONSIDERATIONS: Based on the Town’s 10-year average of the total value of building construction of $32,772,355, a 4% use tax on construction materials would have generated an average of $655,447 per annum in revenue. It should be noted that because the Town (excluding The Village (at Avon)) has only a few remaining vacant parcels for large potential developments remaining, the level of use tax from the past ten years might not be an accurate representation of the potential use tax that might be realized in the future. Redevelopment of East Avon Town Center and other underdeveloped prop erties in the Town core may provide additional use tax revenues. Village At Avon (Traer Creek Metro District). The Consolidated Amended and Restated Annexation and Development Agreement (“CARADA”) specifically contemplates that the Town may, at some point, impose a use tax. In the event a use tax is imposed, a corresponding “use tax credit” will automatically be applied to any transaction subject to the use tax. The CARADA also contemplates th at Traer Creek may impose a building materials fee if the Town imposes a use tax. The CARADA is silent as to whether the building materials fee must be used for the same purposes as the use tax. The CARADA does provide the Town must coordinate with Traer Creek regarding the implementation of any use tax, so the To wn will need to further explore the building materials fee with Traer Creek. Based on 1,835 remaining residential dwelling units (at 1,500 sq. ft. each) and 470,017 remaining commercial square footage left to be developed. At $400 per sq. ft. construction cost the total taxable value (50% of total construction value) is $644,503,400. Therefore the potential use tax revenue generation is estimated to be in excess of $25 million using a 4% tax rate. Given the existing debt of approximately $75 million and the Page 3 of 3 remaining Credit PIF Cap of over $21 million, the additional use tax revenues could make a meaningful reduction in the term of the life of this debt. SAMPLE BALLOT LANGUAGE: A draft of the use tax ballot question language is included with this Report as Attachment A. As mentioned above, there is not restriction to use of the revenues generated from a use tax. USE TAX CODE: A draft of the proposed Use Tax Code Chapter 3.09 is included with this Report as Attachment B. An ordinance approving the new Chapter would be presented to Council for first reading upon adopting a resolution certifying the ballot content to the County Clerk and Recorder. RECOMMENDATION: We recommend that Council provide direction regarding the possible adoption, either by resolution or by ordinance, of a construction materials use tax ballot question to be certified to the Eagle County Clerk and Recorder for inclusion in the November 8, 2022, general election. Thank you, Scott and Eric ATTACHMENTS: Attachment A – Draft - Use Tax Ballot Question Attachment B – Draft - Use Tax Code Chapter 3.09 Attachment C – 2021 Council Report SAMPLE USE TAX BALLOT QUESTION SHALL TOWN OF AVON TAXES BE INCREASED $____ MILLION ($____________) ANNUALLY IN 2023, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT FOR ANY MUNICIPAL PURPOSE, IN ACCORDANCE WITH SUCH TERMS, CONDITIONS AND POLICIES AS MAY BE ADOPTED BY THE AVON TOWN COUNCIL, ALL IN ACCORDANCE WITH ORDINANCE NO. 22-____ ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW. 1 CHAPTER 3.09 – Use Tax on Construction Materials 3.09.010 – Title, Purpose, and Applicability. (a) This Chapter shall be known and may be cited as “The Town of Avon Use Tax on Construction and Building Materials.” (b) The purpose of this Chapter is to raise revenue for municipal purposes and provide a complementary tax to the Town’s sales tax. The Town Council find that every person who uses or consumes in the Town any construction and building materials is exercising a taxable privilege. (c) Subject only to the exemptions set out at Section 3.09.040, the use tax imposed herein shall apply to any use or consumption in the Town of construction and building materials purchased at retail on or after January 1, 2023. 3.09.020 – Definitions When not otherwise clearly indicated by the context, the following words and phrases, as used in this chapter, shall have the following meanings: Building permit means a permit, issued by the Town, allowing the permit holder to construct, enlarge, repair, move, demolish, or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert, or replace any electrical, gas, mechanical , or plumbing system regulated by the adopted building codes of the Town. A building permit shall not include any permit for demolition or dewatering. Charitable organization means any entity which has been certified as a nonprofit organization under Section 501(c)(3) of the Internal Revenue Code. Construction equipment means any equipment, including mobile machinery and mobile equipment, which is used to erect, install, alter, demolish, repair, remodel, or otherwise make improvements to any real property, building, structure, or infrastructure, whether leased or owned. Construction Materials means tangible personal property which, when combined with other tangible personal property, loses its identity to become an integral and inseparable part of a structure or project including public and private improvements. Construction Materials include, but are not limited to, such things as: asphalt, bricks, builders' hardware, caulking material, cement, concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling equipment, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam, millwork, mortar, oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh, road base, roofing, sand, sanitary sewer pipe, sheet metal, site lighting, steel, s tone, stucco, tile, trees, shrubs and other landscaping materials, wall board, wall coping, wallpaper, weather stripping, wire netting and screen, water mains and meters, and wood preserver. The above materials, when used for forms, or other items which do not remain as an integral and inseparable part of completed structure or project are not construction materials. 2 Construction valuation means the total value of the work, including labor and construction and building materials, for which a permit is issued, including leased construction equipment, electrical, gas, mechanical, plumbing equipment and permanent systems, as determined by the building department or building official. Consumption means the act or process of consuming, and includes waste, destruction, or use. Consumption is the normal use of property for the purpose for which it was intended. Contractor means any person who shall build, construct, reconstruct, alter, expand, modify, or improve any building, dwelling, structure, infrastructure, or other improvement to real property for another party pursuant to an agreement. For purposes of this definition, Contractor also includes subcontractor. Director means the Director of Finance for the Town or such person’s designee. Person means any individual, firm, partnership, joint venture, corporation, limited liability company, estate or trust, receiver, trustee, assignee, lessee, or any person acting in a fiduciary or representative capacity, whether appointed by court or otherwise, or any group or combination acting as a unit. Purchase or sale means the acquisition for any consideration by any person of tangible personal property by way of purchase, lease, or rental, including capital leases, installment and credit sales, and lease-purchase, rental or grant of a license to use, which consideration may include money, exchange of property or services, or any other thing of value. Purchase price means the aggregate value in money of anything or things paid or delivered or promised to be paid or delivered by a purchaser to a retailer or any person in the consummation of a retail sale as defined herein, without any deduction therefrom for the cost of the property sold, cost of materials used, labor or service cost, or any other expense whatsoever, and provided that when articles of tangible personal property are sold after manufacture or after having been made to order, the gross value of all materials, labor, service, and profit thereon shall be included in the purchase price; provided that the purchase price shall not include any direct tax imposed by the United States government, the state, or this chapter. Retail Sale or Purchased at Retail means any purchase or sale of tangible personal property, except a wholesale sale or purchase made for taxable resale. Taxpayer means any person obligated to collect and/or pay tax under this Code. Town means the Town of Avon. Use means the exercise, for any length of time, by any person with the Town of any right, power or dominion over tangible personal property or services when rented, leased, or purchased at retail from sources within or with the Town; or tangible personal property used in the 3 performance of a contract in the Town, whether or not owned by the taxpayer. Use also includes withdrawal of items from inventory for consumption. Wholesale sales mean a sale to a licensed retailer, jobber, dealer, or other wholesaler for resale. Sales by wholesalers to consumers, including persons who use or consume construction and building materials, as defined by this Section, are not wholesale sales. Sales by wholesalers to non-licensed retailers are not wholesale sales. Wholesaler means any person selling to retailers, jobbers, dealers, or other wholesalers, for the purpose of resale and not for storage, use, consumption, or distribution. 3.09.030 – Use tax imposed. (a) There is hereby imposed and levied in the Town, and shall be collected and paid, a use tax on the privilege of using or consuming within the Town construction and building materials of every kind and form purchased or leased inside or outside the Town. (b) The use tax imposed by this Chapter shall be at the rate of four percent (4%) of the cost of construction and building materials used or consumed in the Town, including leased equipment. For purposes of this Chapter, the cost of construction and building materials is deemed to be fifty percent (50%) of the construction valuation. (c) Any construction and building material used or consumed on a project which has received all final development review approvals required by Title 7 of the Avon Municipal Code on or before December 31, 2022, shall not be subject to the use tax imposed herein. If any approval expires by its terms after December 31, 2022, such application for development review shall then be subject to the use tax imposed by this Chapter. 3.09.040 – Exemptions. The following are exempt from the use tax imposed by this chapter, provided that the list of exemptions cannot be increased by implication or similarity and the burden of proof is upon the taxpayer to establish an exemption: (a) The use or consumption of construction and building materials the sale of which is subject to a retail sales tax imposed by the Town; (b) The use or consumption of construction and building materials purchased for resale in the Town, either in their original form or as an ingredient of a manufactured or compounded product, in the regular course of business; (c) The use or consumption of construction and building materials by the United States government; by the State, its departments or institutions or political subdivisions thereof in their governmental capacities only; or by the Town; providing, however, that no commercial, industrial or other banking institution, organized or chartered by 4 the United States government, any agency or department thereof, or by the State, shall be considered a governmental institution for the purpose of this exemption; (d) The use or consumption of construction and building materials by charitable organizations in the conduct of their regular charitable functions; except that nothing herein contained shall be deemed to exempt use of construction and building material or supplies used by a contractor for the construction of an improvement for a charitable organization; (e) The use or consumption of construction and building materials by a person engaged in the business of manufacturing or compounding for sale, profit, or use of any article, substance, or commodity, which construction and building materials enters into the processing of or becomes an ingredient or component part of the product or service which is manufactured, compounded, or furnished, and the container, label, or the furnished shipping case thereof; (f) The use or consumption of construction and building materials if a written contract for the purchase thereof was entered into prior to January 1, 2023; (g) The use or consumption of construction and building materials required or made necessary in the performance of any construction contract bid, let, or entered into at any time prior to January 1, 2023; (h) The storage of construction and building materials; (i) A building project, subject to a Town of Avon Building Permit, with a total construction valuation of fifty thousand dollars ($50,000.00) or less; (j) The use or consumption of construction and building materials in the Town on which the use tax imposed by this Chapter has already been paid; and (k) Any transaction which the Town is prohibited from taxing under applicable law. 3.09.050 – Credit for taxes paid to another taxing authority. (a) The Town’s use tax shall not apply to the use or consumption of any construction and building materials the sale or use of which has already been subjected to a legally imposed sales or use tax of another statutory or home rule town, city, or city and county equal to or in excess of the use tax imposed herein. (b) A credit shall be granted against the Town’s use tax in an amount equal to lawful tax previously paid by the purchaser or user to another taxing authority, provided that the amount of credit shall not exceed the amount of use tax imposed by this Chapter. (c) The burden of proof is upon the taxpayer to establish the right to any credit claimed. 5 (d) It is the intent of this Chapter for Town taxes to be paid at the time a building permit is issued. Once such permit is issued, persons engaged in construction projects in the Town are considered to be the end users of construction and building materials and must not pay municipal sales tax to a retailer in another jurisdiction for materials to be used or consumed in the Town. No refund or credit of another municipality’s tax will be allowed unless such tax is legally imposed. 3.09.055 – Tax credit for the Village (at Avon). Notwithstanding any other provisions of this Chapter, there shall be granted to each person owing tax on use or consumption of building materials within The Village (at Avon) a temporary tax credit equal to the amount of any Building Materials Use Fee paid by or on behalf of such person for that same use or consumption. The amount of the credit shall not exceed the amount of use tax owed. This credit shall expire with the termination of the Building Materials Use Fee as set out in the Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon), as recorded with Eagle County on August 1, 2014. Neither the ability of the Town to grant the temporary tax credit nor termination of the tax credit shall constitute a tax increase, the imposition of a new tax, or a tax policy change. 3.09.056 - Tax credit for Community Housing. Notwithstanding any other provision of this Chapter, there may be granted a tax credit to each person owing tax on the use or consumption of construction and building materials and fixtures used in a Community Housing project provided that such use 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 rate increase, the imposition of a new tax or a tax policy change. 3.09.057 - Temporary tax credit for renewable energy production components. Notwithstanding any other provision of this Chapter, there shall be granted a temporary tax credit to each person owing tax on the use or consumption of components used in the production of electricity, generation of heat or cooling of air, from a renewable energy source, including but not limited to wind, solar, solar thermal systems, and geothermal energy systems, provided that this temporary tax credit shall commence on the effective date of this ordinance and shall continue until December 31, 2024, whereupon this temporary tax credit shall automatically expire unless extended by adoption of an ordinance. Neither the ability of the Town to grant the temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition of a new tax or a tax policy change. 3.09.060 – Collection and administration. (a) The administration of this chapter is hereby vested in the Director, who shall prescribe forms and promulgate rules and regulations for the proper administration and enforcement of this chapter. The Director may delegate to any person the power and authority necessary for the proper administration and enforcement of this chapter. 6 (b) The use tax required by this Chapter shall initially be made by estimate, which estimated amount must be paid at or prior to the time any permit for building or construction within the Town is issued. No permit shall be issued by the Town Building Official, or any other town employee, to any person requesting a permit for construction within the Town until such estimated use tax has been paid. The tax estimate shall be made by the Director, working with the Community Development Department to determine the Construction Valuation. (c) All use taxes due to the Town must be paid in full before a final building inspection may take place and a permanent or temporary certificate of occupancy issued. The Director may determine the amount of use taxes due to the Town before final inspections occur or certificates of occupancy issue. To assist in this determination, the Director may request information from the taxpayer, who shall timely provide it, which information may include proof of actual amounts paid for construction and building materials used or consumed in the building project. (d) A person engaged in a construction project in the Town who does not apply for and have issued a permit or who seeks and obtains prior approval of the Director to remit use taxes in accordance with this Subsection (d) shall, on or before the twentieth day of each succeeding month following the start of construction, file a return with the Director attaching all statements and invoices establishing the price paid for building and construction materials used in the local project, along with a summary sheet for materials purchased the previous month, and shall thereupon pay to the Town the full amount of use tax due for the preceding month or months. Any failure to make such return and payment of such use tax shall be deemed a violation of this Chapter, which may, upon conviction, subject the violator to penalties provided. 3.09.070 – Penalty and Interest. (a) If any person fails, neglects, or refuses to pay the use tax as required by this chapter, or if any taxpayer fails to remit the proper amount of tax or underpays the tax, then penalties and interest shall be imposed in accordance with this section. (b) If a person neglects or refuses to pay any use tax as required by this Chapter within ten (10) days after the same is due, the Director shall make an estimate, based upon such information as may be available, of the amount of use tax due for the period for which the taxpayer is delinquent and shall add thereto a penalty equal to the greater of fifteen dollars ($15.00) or ten percent (10%) of the amount due and interest at the rate of one-and-a-half percent (1.5%) per month from the time delinquent payment was due. (c) If any part of the deficiency is due to fraud with the intent to evade the tax, there shall be added a penalty of one hundred percent (100%) of the total amount of the deficiency, and in such case the whole amount of the tax unpaid, including the additions, shall become due and payable ten (10) days after written notice and demand 7 by the Director, and an additional three percent (3%) per month on said amount shall be added from the date payment was due, until paid. (d) The Director may, for good cause shown, waive any penalty or interest. 3.09.080 – Remedies not exclusive. In addition to enforcement remedies expressly provided in this chapter, the Town may pursue any other remedies available at law or in equity. 3.09.090 – Lien. The tax imposed by this Chapter, together with accrued interest and penalties, shall be a first and prior lien on any real property into which the construction and building materials were incorporated. 3.09.100 – Limitation of Action. Use tax, interest, and penalties shall be assessed, and any action to collect the same shall be commenced, within three (3) years of the issuance of a final certificate of occupancy for the improvement on which the use tax was paid. This period of limitation shall not run for any period of time covered by an audit if written notice of that audit is given to the taxpayer prior to expiration of the limitation period. 3.09.110 – Refunds. (a) Upon completion of construction, the taxpayer may apply to the Director for a refund of overpaid taxes. Such application shall be supported by documentation required by the Director or as needed to establish actual amounts paid for construction and building materials used or consumed as part of a building project. (b) A taxpayer claiming an exemption may pay the use tax under protest. Applications for refund of such protested tax must be made within sixty (60) days of issuance of the building permit for which the use tax was paid under protest. (c) A taxpayer claiming refund for use tax paid by mistake or in error must make that claim within three (3) years of the final inspection or issuance of a permanent certificate of occupancy, whichever comes later, for the improvement on which the use tax was paid. (d) All claims for refund shall be upon forms prescribed by the Director and made in such manner as required by the Director. The Director shall promptly review refund claims and issue a denial in writing, state the reason therefor, or provide the funds requested, after applying any refund amount against outstanding tax liabilities. 8 (e) If a taxpayer disputes a refund denial, the taxpayer shall provide the Director with a written protest, filed within 30 days of the Director’s notice. The protest shall identify specific grounds for dispute, including any necessary documentation, and shall request a hearing before the Director. This protest process, and that of any related appeal, shall be in accordance with Section 29-2-106.1, Colorado Revised Statutes. (e) The right to refund shall not be assignable. 3.09.120 – Audit. (a) The Town may audit, or the taxpayer request an audit, within three (3) years from the issuance of any certificate of occupancy for the improvement on which the use tax was paid. An audit requested by the taxpayer shall be at the taxpayer’s sole cost. (b) If the recomputed use tax is less than the amount of use tax paid by the taxpayer, the difference shall be refunded to the taxpayer within thirty (30) days of the final determination of the Town. If the recomputed use tax is more than the amount of use tax paid by the taxpayer, the difference, along with any interest and penalty imposed by this chapter, shall be due and payable by the taxpayer immediately upon the final determination of the Town with notice to the taxpayer. 3.09.130 – Book, Records, Reports, and Returns. (a) Every person liable for any use tax imposed by this chapter shall keep and preserve, for a period of three (3) years from the date of issuance of a final certificate of occupancy for the improvement on which the use tax was paid, all books, records, reports and returns necessary to determine the amount of tax liability. All such books, records, reports, and returns shall be open for examination at any time by the Director. (b) Any information gained by taxpayer disclosure or as part of an audit or investigation shall be entitled to the same level of confidentiality afford to sales tax information, as set out in Chapter 3.08 of the Avon Municipal Code. (c) For the purpose of determining the amount of tax due from any taxpayer, the Director may hold investigations and hearings concerning any matters covered by this Chapter, and may examine any relevant books, papers, records, or memoranda of any such person, requiring the attendance of such taxpayer, or any officer or employee of such taxpayer, or of any person having relevant knowledge, and taking such testimony and proof as may be necessary to properly ascertain any tax liability. The Director shall have power to administer oaths to any person in the course of such investigations or hearings. Production of documents and attendance of witnesses shall be requested by the Director on his or her own motion or on motion of any party; any request for production or attendance shall inform persons that compliance is voluntary but that, if the request is not complied with, the Director may apply to the Municipal Judge for issuance of a subpoena. 9 (d) The Municipal Judge, upon application of the Director, may compel the attendance of witnesses, the production of books, papers, records or memoranda, and the giving of testimony before the Director or any of his or her duly authorized agents, by the issuance and enforcement of subpoenas, in the same manner as production of evidence may be compelled before the court. 3.09.140 – Violation and Penalty (a) It is a violation of this Chapter for any person subject to the use tax levied by this chapter to submit any false or fraudulent use tax information to the town, to make any false statement on any document used to calculate taxes due under this chapter, to fail or refuse to make payment of any taxes due, to evade the payment of any taxes due, or to aid or abet another in any attempt to evade the payment of any taxes due under this chapter. (b) In addition to any other penalty provided in this Chapter, any person who violates any provision of this Chapter shall be punished in accordance with Section 1.08 of the Avon Municipal Code. [970] 748-4055 swright@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Scott Wright, Assistant Town Manager; Paul Wisor, Town Attorney; Eric Heil, Town Manager RE: Use Tax on Construction Materials DATE: July 7, 2021 SUMMARY: This report provides an overview of a potential Use Tax, including draft Ballot Language and recommendations. Council approved the 2021 Department goals early in the year which included a Finance Department Goal to present legal and financial analysis of Use Tax. Finance Department, Goal #12 states, Present Legal and Financial Analysis of Use Tax: Staff will prepare an overview of sales and use tax as commonly used throughout Colorado, potential revenues, potential dedication of such revenues for designated purposes such as capital improvements or community housing, and present that information to the Finance Committee. The 2018 Town of Avon Community Housing Plan established a goal to secure additional local funds for housing and to seek opportunities for new funding sources. The Community Housing Plan states on P. 6 under Funding, A two-step process is envisioned to secure additional local funds for housing. The first step will be to review current revenue streams and determine if additional funds can be directed to housing efforts through the annual budgeting process. This review will begin at the end of 2018. Depending on the outcome of the first step, the second step will be to seek opportunities for new funding sources, which could include approaches such as increased linkage fees, regional collaboration, and/or support for a local ballot initiative. The purpose of this report is to introduce to Council a possible means for funding Community Housing projects through the assessment of a use tax on construction materials. This is submitted as a written report and no formal action by Council is requested at this time. If Council decides that this might be a favorable way to raise funds for this purpose it must be approved by the Town’s electorate in a TABOR election, since implementing a use tax is a change in tax policy and increases revenue. Critical dates pursuant to TABOR include the following: (1) August 10. Last regularly scheduled Town Council meeting to introduce first reading of an ordinance to refer ballot question and self-execute implementation of use tax upon approval. (2) August 24 Last regularly scheduled Town Council meeting in which to adopt a resolution certifying ballot content to the County Clerk and Recorder. (3) September 3. Last day to certify the ballot content to the County Clerk and Recorder. (4) November 2. Election day. BACKGROUND: In 2002 a 4% construction use tax was submitted to the Town of Avon electors by the Avon Town Council. The tax was to be "spent solely for transportation and recreation capital projects and Page 2 of 4 services and infrastructure related thereto." The ballot question failed to pass by a vote of 379 in favor and 573 against (See Attachment A). ANALYSIS: Use taxes are levied on the consumption of tangible personal property within a city or county for which no sales or use tax has been previously paid. A use tax differs from a sales tax in that the purchaser (as opposed to the retailer) is generally held responsible for paying the use tax. Use taxes are considered complimentary to a sales tax and are applied in the jurisdiction where the product or materials are used rather than where purchased. Use taxes are typically assessed at the same rate as the sales tax that would have been owed and generally the taxability of the goods or services is the same. The State of Colorado imposes both a sales tax and a use tax. The use tax is imposed as a complement to Colorado sales tax, and is meant to capture revenue on transactions that are not subject to a sales tax as well as transactions which are more efficient and effective to impose and collect the use tax rather than the sales tax. The use tax is imposed for the privilege of storing, using, or consuming tangible personal property in Colorado. In general, whenever a purchaser acquires tangible personal property without paying sales tax at the time of the sale, they must pay consumer use tax directly to the Department of Revenue. If an item is exempt from sales tax, it is generally exempt from use tax as well. The Colorado use tax rate is 2.9%, the same as the sales tax rate in Colorado, and use tax is calculated in the same manner as sales tax. There are generally three types of use taxes that may be imposed on purchasers: (1) A Consumer Use Tax; (2) A Motor Vehicle Use Tax; (3) A Construction Use Tax levied on building materials. Consumer Use Tax. The first type of use tax - a consumer use tax - is defined as a "companion" tax for purchases made where sales tax is not charged. In Colorado, this companion tax is called a consumer use tax. Typically, a consumer use tax is imposed on transactions that are subject to sales tax, but tax was not charged. Usually, this occurs when items are purchased out-of-state, ordered through the mail, over the Internet, or by phone from another state. It is imposed on the use, storage, or consumption of tangible personal property in the state. The use tax often applies when a company makes a purchase from an out- of-state seller that is not required to collect sales tax in the purchaser’s state. Consumer use taxes are imposed by state and local governments for two reasons — to prevent someone from evading a sales tax by buying goods or taxable services from a non-taxing state and shipping them into the state that imposes the sales tax. In addition, the use tax protects retailers located in the state or municipality because it removes the incentive for consumers to shop outside that locality in order to avoid paying the sales tax. On June 21, 2018, the United States Supreme Court ruled in a 5-4 decision in South Dakota v. Wayfair, Inc., et al, that states can generally require an out-of-state seller to collect and remit sales tax on sales to in-state consumers even if the seller has no physical presence in the consumer's state. Because of this decision, we do not consider future lost sales taxes from out-of-state retail sales to be material enough to consider a consumer use tax ballot question. We do not recommend Council consider a Consumer Use Tax. Motor Vehicle Use Tax. In general, motor vehicle sales are subject to all state and local sales taxes that apply within the jurisdiction where the sale occurred. However, in most jurisdictions, sales are exempt from Page 3 of 4 the local sales tax if the motor vehicle is registered outside of Town. If the vehicle sale is exempt as described above, the purchaser must pay applicable use tax imposed by the municipality or county in which the vehicle is registered. If there is no use tax imposed, then the only tax paid is at the State level. Any applicable use taxes must be paid to the county clerk prior to titling and registration. From a practical standpoint, jurisdictions that do not have a motor vehicle use tax are unlikely to have new and used automobile dealerships because a resident purchasing a vehicle within that jurisdiction would have to pay sales tax vs. purchasing the vehicle outside of the jurisdiction. Use taxes on motor vehicles can raise a substantial amount of tax. A Motor Vehicle Use Tax would be a new tax for Avon residents purchasing a vehicle. We do not recommend Council consider a Consumer Use Tax. Construction Materials Use Tax. The Town of Avon currently imposes a sales tax on building materials. The administrative burden of collection is high and not entirely effective because Avon must collect the sales tax from vendors of construction materials and not the contractors or property owners. Many of the construction materials are purchased outside of the Town. In the case of materials purchased outside of Town and brought into Town by the purchaser (owner, general contractor or sub-contractors), the Town has lost out on the sales tax for those items because it is paid at the location of the retailer. In the case of materials purchased outside of Town and then delivered by the retailer to the job site, sales would not be collected by the retailer and the purchaser should remit the sales tax to the Town. However, due to the “on-your-honor” methodology, the large number of contractors and companies involved, the amount of records involved, and determining who is ultimately responsible for the tax (the owner, general contractor or subs), this methodology is very inefficient. A construction use tax is a form of use tax levied on building materials. The use tax is collected at the time a building permit is issued. The use tax amount is determined by multiplying the use tax rate by the cost of the building materials using a predetermined formula. A common method is to determine that the cost of building materials to be fifty percent (50%) of the total valuation of the construction project. The builder then provides the building permit to the materials supplier to prove that use tax has already been paid, and then is exempt from paying a corresponding municipal sales tax in other locations. A large number of cities and counties in Colorado levy a use tax on building materials including Eagle, Gypsum, Vail, Steamboat Springs and Grand Junction. See the comparison tables in the presentation. The benefits of a use tax on construction materials include the following: (1) fairness in the imposition of the tax; (2) elimination of unfair competition using tax rates as a reason to shop outside of Avon; (3) easing of the administrative burden of collection; (4) nexus of construction to community housing needs; FINANCIAL CONSIDERATIONS: Based on the Town’s 10-year average of the total value of building construction of $32,772,355, a 4% use tax on construction materials would have generated an average of $655,447 per annum in revenue. It should be noted that because the Town (excluding The Village (at Avon)) has only a few remaining vacant parcels for large potential developments remaining, the level of use tax from the past ten years might not be an accurate representation of the potential use tax that might be realized in the future. Redevelopment of East Avon Town Center and other underdeveloped properties in the Town core may provide additional use tax revenues. Page 4 of 4 The timing of the remittance of a use tax versus what was actually collected in sales tax on construction materials makes it very difficult to compare fiscal years. However, an average of the past seven years indicates that the Town has actually collected an average of $399,446 per year with 2020 collections at $537,553 representing almost 6% of total sales tax collections. Village At Avon (Traer Creek Metro District). The Consolidated Amended and Restated Annexation and Development Agreement (“CARADA”) specifically contemplates that the Town may, at some point, impose a use tax. In the event a use tax is imposed, a corresponding “use tax credit” will automatically be applied to any transaction subject to the use tax. The CARADA also contemplates that Traer Creek may impose a building materials fee if the Town imposes a use tax. The CARADA is silent as to whether the building materials fee must be used for the same purposes as the use tax. The CARADA does provide the Town must coordinate with Traer Creek regarding the implementation of any use tax, so the Town will need to further explore the building materials fee with Traer Creek. SAMPLE BALLOT LANGUAGE: Sample ballot language is included with this Report which would dedicate 100% of the revenues of a Use Tax to the Community Housing Fund. The use of these funds is broadly written to encompass all potential investments and expenditures related to Community Housing. OPTIONS: As an option to the sample ballot language contained in Attachment B, Council may consider retaining a portion of the use tax in the General Fund to be used for any legal purpose as a way to offset the amount of sales tax on construction materials that will no longer be collected in that manner. As discussed above, that amount in 2020 equates to approximately 6% of gross sales tax revenues or a total of $537,553. Another option regarding the use tax on construction materials would include not specifically earmarking the funds and leave the appropriation of the funds up to the discretion of the Town Council. RECOMMENDATION: We recommend that Council provide direction regarding the possible adoption, either by resolution or by ordinance, of a construction materials use tax ballot question to be certified to the Eagle County Clerk and Recorder for inclusion in the November 2, 2021 general election. Direction should include addressing the options above. TOWN MANAGER’S RECOMMENDATION: I recommend that Council consider approving the ballot question as presented with 100% of the revenues to be dedicated to Community Housing. In my experience working with ballot questions for new taxes, voters will more likely support a new tax that is dedicated to a pressing community need. Presenting the Use Tax as a new tax to support Community Housing is simple and easy for the general public to understand and I expect would resonate with the community based on the current housing shortage. The Sales Tax on construction materials collected in 2020 amounts to 2.9% of the General Fund operating revenues. Considering the magnitude and scope of housing as well as the need to generate significant sums to leverage with regional partners and state and federal grant funds, Council should be striving for annual revenues to be dedicated or allocated towards Community Housing in the range of $1 million to $2 million. Thank you, Scott, Paul and Eric ATTACHMENTS: Attachment A - Ordinance No. 2002-18 Attachment B - Sample Use Tax Ballot Question TOWN OF AVON ORDINANCE NO. 02-18 SERIES OF 2002 AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows: a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX." b) 43.08.020. Taxable items. A new subpart D. is added to state as follows: D. Upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town." c) 43.08.030. Sales tax levy. i) The title of §3.08.030 is changed to state "Sales and use tax levy." ii) Section 3.08.030C is repealed and reenacted to state as follow: The retailer shall add the sales tax imposed hereto to the sale or charge of the item sold, showing such tax as a separate and distinct item, and, when added, such tax shall constitute a part of such price or charge, shall be a debt from the purchaser to the retailer until paid and shall be recoverable at law in the same manner as other debts." iii) A new subpart E. is added to state as follows: E. (1) A use tax of four percent is imposed upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town. 1 ATTACHMENT A 2)(a) Any person who shall build or improve any dwelling or other structure or improvement to realty within the town, including underground improvements, and who shall purchase the necessary construction materials needed therefor from any source inside or outside of the town, shall remit to the Finance Director prior to the issuance of any building permit for such improvement full payment of the use tax, to be calculated as provided herein. The full amount of the use tax shall be due and payable at the time that the applicable building permit is issued. The estimate of the cost of the construction materials shall be determined by the Town Building Official in the manner set forth below, and the amount of the tax shall be subject to adjustment if the actual cost of the construction materials needed for the improvement is either less than or greater than the estimate. Upon payment of the use tax, the Finance Director shall issue the taxpayer a receipt identifying the property that is the subject of the tax and the building permit number. b) For the purpose of calculating the amount of the use tax as provided for herein, the value of the construction materials in the improvement shall be estimated to be equal to fifty percent of the total value of the improvement as determined by the Building Official for building permit purposes. The use tax obligation shall be an amount equal to four percent of such estimated value of the construction materials. c) If it is determined by the Finance Director through audit or other means that the actual cost of the construction materials for the improvement is greater than the estimate on which the tax was based, and that additional tax is owing, then the Finance Director shall make a demand to the taxpayer for the additional use tax owed together with interest calculated pursuant to § 3.08.353; provided, in no case may the Finance Director make a claim for amounts due more than three years after a certificate of occupancy or final inspection approval has been issued by the town for the improvement. A taxpayer's failure to honor the Finance Director's claim for additional tax due, as set forth in this paragraph, shall constitute a violation of this chapter. 3) All use tax funds collected by the Town in accordance with the provisions of this chapter shall be appropriated and spent solely for transportation and recreation capital projects and services and infrastructure related thereto." d) & 3.08.320. Sales tax - Credit for sales or use taxes previously paid to another municipality. i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit for sales or use taxes previously paid to another municipality." ii) Section 3.08.320 is repealed and reenacted to state as follow: 2 ATTACHMENT A For transactions consummated on or after January 1, 1986, the town's sales tax shall not apply to the sale of tangible property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule municipality equal to or in excess of that provided for in Section 3.08.030. A credit shall be granted against the town's lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule municipality. The amount of the credit shall not exceed the town's sales or use tax imposed pursuant to Section 3.08.030." Section 2. Section 3.08.035 of the Avon Municipal Code is amended as follows: 3.08.035 Tax Credit. Notwithstanding any other provisions of this chapter, there shall be granted to each person owing 1) the sales tax on sales consummated within The Village (at Avon) or 2) the use tax on the purchase price paid or the acquisition costs of construction materials brought within the boundaries of the Town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property within The Village (at Avon) a temporary tax credit against collection of the tax equal to the amount of any retail sales or use fee paid by or on behalf of such person. The amount of the credit shall not exceed the amount of the tax. No such credit shall shall be granted subsequent to termination of the collection of the retail sales fees and use fees terminate pursuant to the Annexation and Development Agreement for The Village (at Avon). Neither the ability of the Town to grant the temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition of a new tax or a tax policy change." Section 3. Election and Effective Date. Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax increase provided in this ordinance to the qualified electors of the Town for approval at the regular Town election scheduled for November 5, 2002. If approved by a majority of the electors voting thereon, this ordinance shall become effective when the Town Clerk or other designated election official duly files the required certificate of election, or on January 1, 2003, whichever occurs last. Section 4. Ballot Title and Question. The ballot title and question submitted to the electors shall be as follows: ATTACHMENT A SHALL TOWN OF AVON TAXES BE INCREASED $1.6 MILLION ($1,600,000) ANNUALLY IN 2003, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR TRANSPORTATION AND RECREATION CAPITAL PROJECTS AND SERVICES AND INFRASTRUCTURE RELATED THEREO, ALL IN ACCORDANCE WITH ORDINANCE NO. 02-18 ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? INTRODUCED, APPROVED ON FIRST READING, AND ORDERED PUBLISHED IN FULL AND POSTED, this 9th day of July, 2002, and a public hearing on this ordinance shall be held at the regular meeting of the Town Council of the Town of Avon, Colorado on the 27th day of August, 2002, at 5:30 p.m. in the Municipal Building of the Town of Avon, Colorado. TOWN OF AVON, COLORADO: ATT To Cl rk yor 4 ATTACHMENT A INTRODUCED, APPROVED ON SECOND READING, AND ORDERED PUBLISHED AND POSTED this 27th day of August, 2002. TOWN OF AVON, COLORADO: Jyor ATT oc- To Cl rk EARS APPROVED AS TO FORM: Town ttorney ATTACHMENT A STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 27TH DAY OF AUGUST 2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002: AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice is given and posted by order of the Town Council of the Town of Avon, Colorado Dated this 23rd day of August 2002. TOWN OF AVON, COLORADO BY: P ! "lc/ Patty Yel envy Town Cie& POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON AUGUST 23, 2002: AVON MUNICIPAL BUILDING, MAIN LOBBY ALPINE BANK, MAIN LOBBY AVON RECREATION CENTER, MAIN LOBBY CITY MARKET, MAIN LOBBY ATTACHMENT A STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 13TH DAY OF AUGUST 2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002: AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice is given and posted by order of the Town Council of the Town of Avon, Colorado Dated this 6`" day of August, 2002. TOWN OF AVON, COLORADO BY: 201 /~c Pa " cKenn Town Clerk POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON AUGUST 6, 2002: AVON MUNICIPAL BUILDING, MAIN LOBBY ALPINE BANK, MAIN LOBBY AVON RECREATION CENTER, MAIN LOBBY CITY MARKET, MAIN LOBBY ATTACHMENT A STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 23RD DAY OF JULY 2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002: Ordinance 02-18, Series of 2002 - An Ordinance Adding a Use Tax on Construction Materials A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice is given and posted by order of the Town Council of the Town of Avon, Colorado Dated this 19th day of July, 2002. TOWN OF AVON, COLORADO BY: c Pay c envy Town erk POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON JULY 19,2002: AVON MUNICIPAL BUILDING, MAIN LOBBY ALPINE BANK, MAIN LOBBY AVON RECREATION CENTER, MAIN LOBBY CITY MARKET, MAIN LOBBY ATTACHMENT A ORDINANCE NO. 02-18 gad SERIES OF 2002 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,COLORADO: Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows: a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX." b) 43.08.020. Taxable items. A new subpart D. is added to state as follows: D. Upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town." c) 43.08.030. Sales tax levy. i) The title of §3.08.030 is changed to state "Sales and use tax levy." ii) Section 3.08.030C is repealed and reenacted to state as follow: The retailer shall add the sales tax imposed hereto to the sale or charge of the item sold, showing such tax as a separate and distinct item, and, when added, such tax shall constitute a part of such price or charge, shall be a debt from the purchaser to the retailer until paid, and shall be recoverable at law in the same manner as other debts." iii) A new subpart E. is added to state as follows: E. (1) A tax of four percent is imposed upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town. AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. 2) Any person who shall build or improve any dwelling or other structure or improvement to realty within the town, including underground ATTACHMENT A improvements, and who shall purchase the necessary construction materials needed therefore from any source inside or outside of the town, shall keep all invoices and statements regarding such materials from both the general and subcontractors, along with a summary sheet showing such purchases, and shall, on or before the tenth day of each succeeding month following the start. of construction, file a return with the Finance Director, to which he shall attach such invoices, statements and. summary for the construction materials purchased the previous month, and . shall thereupon pay to the Finance Director the full amount of the use tax due thereon for the preceding month or months. Any failure to preserve such statements and invoices, and to make such return and payment of such use tax, shall be deemed a violation of this chapter. The full amount of any use tax due and not paid for construction materials shall be a lien upon the real property benefited by such improvements, and the Finance Director is authorized to file a notice of such lien with the County Clerk and Recorder. 3)(a) Any person who shall build or improve any dwelling or other structure or improvement to realty within the town, including underground improvements, and who shall purchase the necessary construction materials needed therefore from any source inside or outside of the town, may, at such person's option, remit a deposit to the Finance Director prior to the issuance of any building permit for such improvement, such deposit to insure and indemnify the town for the amount of use tax due. The amount of the deposit shall be based upon an estimate of the use tax to be payable on the construction materials used for the improvement. Such estimate shall be made, and such deposit shall be paid, at the time that the applicable building permit is issued. The estimate of the cost of the construction materials shall be determined by the Town Building Official, and the estimate shall be subject to adjustment if the actual cost of the construction materials needed for the improvement is either. less than or greater than such estimate. If the taxpayer elects the deposit procedure set forth in this subsection (3), then the provisions of subsection (2) hereof shall be waived. Upon payment of the deposit as set forth herein, the Finance Director shall issue the taxpayer a receipt identifying the property that is the subject of the deposit and the building permit number. b) For the purpose of calculating the amount of the deposit as provided for herein, the value of the construction materials in the improvement shall be estimated to be equal to fifty percent of the total value of the improvement as determined by the Building Official for building permit purposes. The deposit shall be in the amount of four percent of such estimated value of the construction materials. c) If it is determined by the Finance Director that the actual cost of the construction materials for the improvement is.greater than the estimate therefore, and that the amount of the use tax deposit is not sufficient to 2 ATTACHMENT A provide for full payment of the use tax, then the Finance Director shall make a demand to the. taxpayer for the additional use tax owed; provided, in no case may the Finance Director make a claim for amounts due over and above the amount of the deposit more than three years after a certificate of occupancy or final inspection approval has been issued by the town for the improvement. A taxpayer's failure to honor the Finance Director's claim for additional tax due, as set forth in this paragraph, shall constitute a violation of this chapter. d) If it is determined by the Finance Director that the deposit is sufficient to provide for full payment of the use tax, then the deposit shall be used to pay the amount of the use tax due. If the Finance Director determines that the amount of the deposit is in excess of the use tax owned, then he shall return any excess amount of the deposit to the person who made the deposit within thirty days of such determination. 4) If a taxpayer purchases construction materials subject to the use tax imposed herein from a vendor possessing a valid Town of Avon retail sales tax license, and if he pays the town's sales tax at the time of purchase of such construction materials, then he shall be entitled to a credit, to the extent of such sales tax paid, to be applied to the amount of use tax owed. 5) Construction materials subjected at the time of purchase to a sales or use tax lawfully imposed on the purchaser by another statutory or home rule municipality in the State of Colorado, if taxed at a rate equal to or greater than the four percent rate provided for herein, are exempted from the Town of Avon's use tax. If the rate of the sales or use tax imposed by such other Colorado statutory or home rule municipality is less than four percent, the difference between the tax due under this chapter and the tan paid by the purchaser shall be due to the Town of Avon, and shall be remitted to the Finance Director. 6) All use tax funds collected by the Town in accordance with the provisions of this chapter shall be appropriated and spent solely for transportation and recreation capital projects and services." d) 4 3.08.320. Sales tax - Credit for sales or use taxes previously paid to another municipality. i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit for sales or use taxes previously paid to another municipality." ii) Section 3.08.320 is repealed and reenacted to state as follow: For transactions consummated on or after January 1, 1986, the town's sales tax shall not apply to the sale of tangible property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the 3 ATTACHMENT A purchaser or user by another statutory or home rule municipality equal to or in excess of that provided for in Section 3.08.030. A credit shall be granted against the town's lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule municipality. The amount of the credit shall not exceed the town's sales or use tax imposed pursuant to Section 3.08.030." Section 2. Election and Effective Date. Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax increase provided in this ordinance to the qualified electors of the Town for approval at the regular Town election scheduled for November 5, 2002. If approved by a majority of the electors voting thereon, this ordinance shall become effective when the Town Clerk or other designated election official duly files the required certificate of election, or on January 1, 2003, whichever occurs last. Section 3. Ballot Title and Question. The ballot title and question submitted to the electors shall be as follows: SHALL TOWN OF AVON TAXES BE INCREASED $1.6 MILLION ($1,600,000) ANNUALLY IN 2003, AND. BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR TRANSPORTATION AND RECREATION CAPITAL PROJECTS AND SERVICES, ALL IN ACCORDANCE WITH ORDINANCE NO. 01-08 ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES 4 ATTACHMENT A NO Section 4. Repealer. If the electors approve this ordinance, then on the effective date specified above, all ordinances or parts of ordinances in conflict herewith are hereby repealed, but only to the extent of such inconsistency. Section 5. Severability. The provisions of this ordinance. are severable, and invalidity of any part shall not affect the validity or effectiveness of the rest of this ordinance. INTRODUCED, APPROVED ON FIRST READING, AND ORDERED PUBLISHED IN FULL AND POSTED, this day of July, 2002, and a public hearing on this ordinance shallCaie held at t e regular meeting of the Town Council of the Town of Avon, Colorado on the a3 day of , 2002, at 5:30 p.m. in the Municipal Building of the Town of Avon, Colorado,,,- ATT 7,Cp`p Town lerk TOWN OF AVON, COLORADO: Wor 5 ATTACHMENT A INTRODUCED, APPROVED ON S COND READING, AND ORDERED PUBLISHED AND POSTED this-'1 %ay of )t,,L-t , 2002. Q-T~WN OF AVON, COLORADO: Wor ATT T: o C~ To Cle APPROVED AS TO FORM: Town Attorney 6 ATTACHMENT A STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON ) NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 23R) DAY OF JULY 2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002: Ordinance 02-18, Series of 2002 - An Ordinance Adding a Use Tax on Construction Materials A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice is given and posted by order of the Town Council of the Town of Avon, Colorado Dated this 19th day o 0 F TOWN OF AVON, COLORADO SEA L LBY: Pa Mc envy LOOA®® To k POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON JULY 19, 2002: AVON MUNICIPAL BUILDING, MAIN LOBBY ALPINE BANK, MAIN LOBBY AVON RECREATION CENTER, MAIN LOBBY CITY MARKET, MAIN LOBBY ATTACHMENT A Memo To: Honorable Mayor and Town Council Thru: Bill Efting, Town Manager From: Scott Wright, Finance Director Date: August 9, 2002 Re: Use Tax Ordinance Summary: On July 9, Council passed on 1st reading a use tax ordinance that levied a 4% use tax on the use, storage, or consumption of building materials within the Town of Avon. Subsequent to the 1st reading, there have been several reviews of the various administrative and collection provisions of the ordinance that were prompted by the Town's Annexation and Development Agreement with the Village at (Avon) entities. As a result of these reviews, there are changes to the ordinance for 2nd reading as summarized below: Section 3.08.030 E. (2) of the original ordinance regarding collection of the use tax has been changed to reflect that only projects required to have a building permit would be required to pay a use tax. This change eliminates the reporting and tax burden on individuals with small home improvement projects that don't require permits and eliminates any consumer use tax issues from the ordinance. Sections 3.08.030 E. (2)(a), (b), and (c) of the original ordinance regarding payment of the tax at the time a building permit is issued have been changed to reflect that the full payment of the tax is made, rather than a deposit. This change was necessary to remain consistent with the concept that the use tax is levied at the time a building permit is issued. Sections 3.08.030 E. (4) and (5) have been eliminated as duplicative with existing sections of the existing sales tax code and unnecessary due to the changes above. Section 3.08.030 E. (3) has been changed to add language allowing the use tax funds to be used for infrastructure related to transportation and recreation. Section 3.08.035 has been added to grant a credit against the use tax fee collected by the Village at (Avon) for permitted projects occurring within the Village. Page 1 ATTACHMENT A Town Manager Comments: Attachments: Ordinance No. 02-18 - Black Line Version 0 Page 2 ATTACHMENT A ORDINANCE NO. 02-18 SERIES OF 2002 AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. NOW, THH FORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,COLORADO: Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows: a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX." b) 43.08.020. Taxable items. A new subpart D. is added to state as follows: D. Upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town." c) 43.08.030. Sales tax lees. i) The title of §3.08.030 is changed to state "Sales and use tax levy." ii) Section 3.08.030C is repealed and reenacted to state as follow: The retailer shall add the sales tax imposed hereto to the sale or charge of the item sold, showing such tax as a separate and distinct item, and, when added, such tax shall constitute a part of such price or charge, shall be a debt from the purchaser to the retailer until paid and shall be recoverable at law in the same manner as other debts." iii) A new subpart E. is added to state as follows: E. (1) A use tax of four percent is imposed upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town. ATTACHMENT A h l l k R inveiees and sta4ements e a di s h at i l ft b th a7s th eep-a l drgrnguemerasemeegeneraan d shall 7 anf trofcr t.itu°t;°-- f with t 1;~h t 11hvrvracrcrGTrOrrrnceTiirmiErrcGviceE6r~e F~C i e nurr umhased 7 the m4h an d shall the e e a th Fi eprupnpyaenanse th A f il t e h A M 1a r t d k i d t kmens.ny a ure e pr eserve Su nen s h ll b an we d d ses, an i l ti e ma e f thi h t Th f ll m t ef a us afs tax due an e eeme a d net aid v e a f en e s t fieapen i l e u a eun h AIR b A li ny n u n e the real r p o ert be er ee n fit d ns me en b hmmer-a s s e -e d the Finnt" pe ance Dife p eter_ is aut-he p y r-ize to file e e ti° y sue. f lien with t 7 he Geunty Cler-k and Reeer-der-. ee 2)(a) Any person who shall build or improve any dwelling or other structure or improvement to realty within the town, including underground improvements, and who shall purchase the necessary construction materials needed therefore from any source inside or outside of the town, may, a4 sueh p , shall remit a depesit to the Finance Director prior to the issuance of any building permit for such improvement full payment of the use tax, to be calculated as provided herein , the tew f - the ° nt of use tax a--° The full amount of the depesit use tax shall be due and navable base' ueea an estimate of the use tam to be ~ paid, be made, and sueh depesit shall be at the time that the applicable building permit is issued. The estimate of the cost of the construction materials shall be determined by the Town Building Official in the manner set forth below, and the °e amount of the tax shall be subject to adjustment if the actual cost of the construction materials needed for the improvement is either less than or greater than seeh the estimate. if the taxpa~,er- eleets depesit pr-eeedufe set feAh in this s-74-4b- Se e t i An (3), then the pmvisiefls 0 subseetien (2) her-eef shall be waived-. Upon payment of the use tax depesit-as t f fth h, the Finance Director shall issue the taxpayer a receipt identifying the property that is the subject of the depesit tax and the building permit number. b) For the purpose of calculating the amount of the depesit use tax as provided for herein, the value of the construction materials in the improvement shall be estimated to be equal to fifty percent of the total value of the improvement as determined by the Building Official for building permit purposes. The depesit use tax obligation shall berme an amount of equal to four percent of such estimated value of the construction materials. 2 ATTACHMENT A t c) If it is determined by the Finance Director through audit or other means that the actual cost of the construction materials for the improvement is greater than the estimate on which the tax was based tie, and that additional tax is owing then nt of the use tax depe,it ; net suf- ei°nt t„ P=ovide f r- full payment of the • ° to*, then the Finance Director shall make a demand to the taxpayer for the additional use tax owed together with interest calculated pursuant to & 3.08.353; provided, in no case may the Finance Director make a claim for amounts due over and above the amount of the deposit more than three years after a certificate of occupancy or final inspection approval has been issued by the town for the improvement. A taxpayer's failure to honor the Finance Director's claim for additional tax due, as set forth in this paragraph, shall constitute a violation of this chapter. d) if it is determined b the Fi Di t A .th t th dyeereeer ns.Ffinient to i tde file ot~'full ao th a epoe 1.1°nit ..1. 11thri:r-ciiczacy use en used -te the-amount ef the-use-ta if th Fide e Di t d tpyexunanee that the n nt ofthe .7e se tnvesit is in xeess ofth r-es er e er es d th 1.h llpaeueeesa itl,ir,_t iAy days ofn..nh deten: inn ien nTftn.,4 1,asu~e titcS t t ttbilthr..i d herein ff-eIsn ri n ve d e e max~cruccrvrrzircc er- n °l s u j ,Tccc-er a c cv m--cccxeuse fAn lidTtilvr eta d-if hhe n th va t t ee o esveresaa ti f h chtthfxense~r pays oi~ne s aax e-me-pttm ase o su eenstmetien materSAn[GI ls, then j.,he shall be entitled te-a er-edit, to-LYYl7 extente su.eh nnl°n tn„ p i.af t o ben pl ied to theamount o f use tnv e e straetien m5) G-bjet alateri t th ti f t tax-lawfWl im osed as .a en-the umhse e p uff asmee1~11V 11./Ml Vll{4V b et °t te eV 7,V VI-JGoasales 1hyp litmuniei in the St ap ifate ,.f'!''eie -ad r y--an s a u 4ttd l eme t t thpy er-eeet ratethefetff- d ro idedfe h r-a e equaaxea i t d f o e g an fthTp ven's use tax if t p v r-ere he ate tl l n, are exemp e r vtn om e own e 7 b h t hYY Geier-ado statutor e r e-sae rhe l es er ase c~a l th y efeaeeT f iy differ-enee betw t me-Pa tere na°,.h t d ess an thi h t d th euf eext-,-t e id b heen urehasealll be " e ai ue e-te the Te s e ap er- an e f A d h ll tar, pa y t e tt d t thp 1;in ° Di, °t,. o an s a ra e o e 3) All use tax funds collected by the Town in accordance with the provisions of this chapter shall be appropriated and spent solely for transportation and recreation capital projects and services and infrastructure related thereto." d) § 3.08.320. Sales tax - Credit for sales or use taxes previously paid to another municipality. i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit for sales or use taxes previously paid to another municipality." 3 ATTACHMENT A ii) Section 3.08.320 is repealed and reenacted to state as follow: For transactions consummated on or after January 1, 1986, the town's sales tax shall not apply to the sale of tangible property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule municipality equal to or in excess of that provided for in Section 3.08.030. A credit shall be granted against the town's lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule municipality. The amount of the credit shall not exceed the town's sales or use tax imposed pursuant to Section 3.08.030." Section 2. Section 3.08.035 of the Avon Municipal Code is amended as follows: 3.08.035 Tax Credit. Notwithstanding any other provisions of this chapter, there shall be granted to each person owing 1) the sales tax on sales consummated within The Village (at Avon) or 2) the use tax on the purchase price paid or the acquisition costs of construction materials brought within the boundaries of the Town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property within The Village (at Avon) a temporary tax credit against collection of the tax equal to the amount of any retail sales or use fee paid by or on behalf of such person. The amount of the credit shall not exceed the amount of the tax. No such credit shall shall be granted subsequent to termination of the collection of the retail sales fees and use fees terminate pursuant to the Annexation and Development Agreement for. The Village (at Avon). Neither the ability of the Town to grant the temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition of a new tax or a tax policy change_" . 4 ATTACHMENT A Section 2 3. Election and Effective Date. Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax increase provided in this ordinance to the qualified electors of the Town for approval at the regular Town election scheduled for November 5, 2002. If approved by a majority of the electors voting thereon, this ordinance shall become effective when the Town Clerk or other designated election official duly files the required certificate of election, or on January 1, 2003, whichever occurs last. Section -3 4. Ballot Title and Question. The ballot title and question submitted to the electors shall be as follows: SHALL TOWN OF AVON TAXES BE INCREASED $1.6 MILLION ($1,600,000) ANNUALLY IN 2003, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE. TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR TRANSPORTATION AND RECREATION CAPITAL PROJECTS AND SERVICES AND INFRASTRUCTURE RELATED THEREO, ALL IN ACCORDANCE WITH ORDINANCE NO. 01 08 02-18 ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE .APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? 5 ATTACHMENT A if the-eleeter-s fie-this -ewee, then en the-effies4ive date spesified abeve, all er,dinamees or- aAs of ` r-di anew in ` enfl et herewith are hereby eale a but enAy to the °40..4 The provisions of tMs " -difial}se-ar~aei bleu and invalidity of an pap shall not a ff `.t thee INTRODUCED, APPROVED ON FIRST READING, AND ORDERED PUBLISHED IN FULL AND POSTED, this 9th day of July, 2002, and a public hearing on this ordinance shall be held at the regular meeting of the Town Council of the Town of Avon, Colorado on the 23rd day of July, 2002, at 5:30 p.m. in the Municipal Building of the Town of Avon, Colorado. TOWN OF AVON, COLORADO: Mayor ATTEST: Town Clerk 6 ATTACHMENT A INTRODUCED, APPROVED ON SECOND READING, AND ORDERED PUBLISHED AND POSTED this _ day of , 2002. TOWN OF AVON, COLORADO: Mayor ATTEST: Town Clerk APPROVED AS TO FORM: Town Attorney 7 ATTACHMENT A SAMPLE USE TAX BALLOT QUESTION SHALL TOWN OF AVON TAXES BE INCREASED $____ MILLION ($____________) ANNUALLY IN 2022, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR THE PURPOSE OF FUNDING COMMUNITY HOUSING, INCLUDING THE ACQUISITION OF LAND FOR HOUSING, CONSTRUCTION OF HOUSING, EXTENSION OF PUBLIC INFRASTRUCTURE TO SERVE HOUSING DEVELOPMENT, PURCHASE OF DEED RESTRICTIONS, DOWNPAYMENT ASSISTANCE PROGRAMS, AND PARTNERSHIP WITH PUBLIC AND PRIVATE ENTITIES TO DEVELOP COMMUNITY HOUSING, IN ACCORDANCE WITH SUCH TERMS, CONDITIONS AND POLICIES AS MAY BE ADOPTED BY THE AVON TOWN COUNCIL, ALL IN ACCORDANCE WITH ORDINANCE NO. 21-____ ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW. ATTACHMENT B Use Tax Presentation May 10, 2022 Purpose of Report ●Revisit Possible Use Tax Ballot Question ●Present Revisions to Previous Year’s Report ●Answer Questions and Receive Direction Use Tax Presentation | July 13, 2021 Background PREVIOUS INITIATIVES ●In 2002 a 4% Construction Use Tax Submitted to TOA Voters ●Ballot Language Earmarked the Tax to be “spent solely for transportation and recreation capital projects and services and infrastructure related thereto” ●Question Failed To Pass with 379 In Favor and 573 Against. Use Tax Presentation | July 13, 2021 Construction Use Tax •Use Tax Would Be Collected at Time of Building Permit •Tax Based on Predetermined Formula. Common Method to Use 50% of Construction Value •Builder Exempt from Paying Further Sales Taxes on Materials Related to the Permit •$50,000 exemption on small building permits •Avon is the Only Jurisdiction in Eagle County Without a Construction Use Tax Use Tax Presentation | July 13, 2021 Sales Tax | Use Tax percentages in Eagle County Use Tax Presentation | July 13, 2021 4% | 0% This map shows “% Sales Tax | % Use Tax” for each Town. Town of Avon is the odd town in Eagle County with no use tax. Eagle 4% | 4% Minturn 4% | 4% Vail 4% | 4% Red Cliff 3% | 3% Gypsum 4% | 3% Sales Tax | Use Tax percentages Use Tax Presentation | July 13, 2021 Town Sales Tax (city) Use Tax Crested Butte 4.00% 4.50%1/4.00%2 Steamboat Springs 4.50% 4.50%12 Rifle 4.25% 4.25%12 Eagle 4.00% 4.00%1 Fraser 4.00% 4.00%12 Grand Lake 4.00% 4.00%12 Grandby 4.00% 4.00%12 Minturn 4.00% 4.00%1 Vail 4.00% 4.00%1 Parachute 3.75% 3.75%1 Glenwood Springs 3.70% 3.70%12 Carbondale 3.50% 3.50%12 Grand Junction 2.75% 3.25%12 Fruita 3.00% 3.00%12 Gypsum 4.00% 3.00%1 Mount Crested Butte 5.00% 3.00%1 Red Cliff 3.00% 3.00%1 Silt 3.00% 3.00%12 Alma 3.00% 2.00%2 De Beque 2.00% 2.00%1 Hayden 4.00% 2.00%1 New Castle 3.50% 2.00%1 Yampa 2.00% 2.00%12 Aspen 2.40% 0.00% Avon 4.00% 0.00% Blue River 2.50% 0.00% 1 Construction Materials 2 Motor Vehicles / Trailers Breckenridge 2.50% 0.00% Buena Vista 2.50% 0.00% Collbran 2.00% 0.00% Como 1.00% 0.00% Dillon 2.50% 0.00% Fairplay 4.00% 0.00% Frisco 2.00% 0.00% Gunnison 1.00% 0.00% Hartsel 1.00% 0.00% Hot Sulphur Springs 4.00% 0.00% Keystone 0.75% 0.00% Kremmling 4.00% 0.00% Marble 2.00% 0.00% Montezuma 2.00% 0.00% Oak Creek 3.00% 0.00% Palisade 2.00% 0.00% Pitkin 3.00% 0.00% Poncha Springs 2.00% 0.00% Salida 3.00% 0.00% Silverthorne 2.00% 0.00% Snowmass Village 3.50% 0.00% Winter Park 5.00% 0.00% Construction Use Tax •Advantages of a Construction Use Tax •Provides fairness and simplicity in the imposition of the tax •Eliminates tax rates as a reason to purchase building materials outside of Avon •Reduces tax liabilities for sub-contractors •Retains tax dollars in the community where the burden on Town facilities and services is placed •Eases the administrative burden of collection; Use Tax Presentation | July 13, 2021 Construction Use Tax •Use Tax Statistics $32,772,355 –Ten-year Average of Total Building Construction Value Based on Above, 4% Use Tax Would Generate $610,603 Per Annum •Sales Tax Statistics $399,446 -Seven-year Average of Actual Sales Taxes Collected $537,553 Actual 2020 Sales Tax Collections, or 5.8% of Total Use Tax Presentation | July 13, 2021 Traer Creek •Imposition of Use Tax on building materials shall be automatically applied to any sale within The Village (at Avon) through increase in the Credit PIF. •The Credit PIF increase shall be proportionate to the Use Tax. •Purchases made within The Village (at Avon) shall receive a tax credit against the Town’s Use Tax in the amount equal to an any increase in the Credit PIF resulting from an imposition of the Use Tax. •The Town may amend its Municipal Code to reflect the automatic tax credit for use tax, but such an amendment shall not be required to implement the Tax Credit. •Prior to adopting any such use tax, the Town shall coordinate with Traer Creek regarding the implementation the Use Tax/Credit PIF/Tax Credit. •Increase in the Credit PIF shall not be taxable by the Town. Use Tax Presentation | July 13, 2021 Traer Creek –Section 6.4(v) pf CARDA Sample Ballot Question SAMPLE BALLOT QUESTION SHALL TOWN OF AVON TAXES BE INCREASED $____MILLION ($____________)ANNUALLY IN 2022,AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER,BY THE IMPOSITION OF A FOUR PERCENT (4%)USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS,SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT FOR ANY MUNICIPAL PURPOSE,IN ACCORDANCE WITH SUCH TERMS,CONDITIONS AND POLICIES AS MAY BE ADOPTED BY THE AVON TOWN COUNCIL,ALL IN ACCORDANCE WITH ORDINANCE NO. 21-____ ADOPTED BY THE TOWN COUNCIL;AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X,SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW. Use Tax Presentation | July 13, 2021 Ballot Question Timeline •Requires voter authorization under TABOR. •Fair Campaign Practices Act limits Town’s ability promote ballot question after ballot title is fixed Use Tax Presentation | July 13, 2021 Aug 9 Aug 23 Nov 8Sept 7 Election DayLast day for Town to certify the ballot content Last regularly scheduled Council Meeting to adopt Resolution Last day to introduce Ordinance to refer ballot question and self-execute implementation Thank You Use Tax Presentation | May 10, 2022 Scott Wright Finance Director swright@avon.org TO: Honorable Mayor Amy Phillips and Council members FROM: Jena Skinner, Senior Planner RE: Hidden Valley Estates Record of Decision SUB23001 Subdivision Preliminary Plan & Plat Development Bonus Request DATE: June 9, 2022 SUMMARY: This report reflects the attached Record of Decision for case SUB23001 Hidden Valley Estates. This Record of Decision captures the both the findings the Town Council (“Council”) made at the May 23rd, 2023 hearing for Hidden Valley Estates (Tract Y) Community Housing Project, and importantly captures the “new” Development Bonus request outcome, which are captured through a Record of Decision. Thanks, Jena Record of Decision: SUB23001 Page 1 of 2 AVON TOWN COUNCIL FINDINGS OF FACT AND RECORD OF DECISION DATE OF PUBLIC HEARINGS: May 23, 2023 (Town Council) May 16, 2023 (PZC) TYPE OF APPLICATION: Subdivision Preliminary Plan and Final Plat; Development Bonus PROPERTY LOCATIONS: 0382 Metcalf Road; Mountainstar Filing 3, Tract Y Hidden Valley Estates Community Housing Project FILE NUMBER: SUB23001 APPLICANT: Steven MacDonald (now Hidden Valley Development, LLC) represented by Bobby Ladd, RAL Architects This Record of Decision is made in accordance with the Avon Development Code §7.16.080(c): DECISION: SUB23001: Approved With Conditions Development Bonus Request: Approved FINDINGS: 1. SUBDIVISION PRELIMINARY PLAN CRITERIA: § 7.16.070(e), Preliminary Plan: The application was reviewed in conformance with § 7.16.070(e), Preliminary Plan and this application is found to be generally consistent with the criteria of this Section. 2. SUBDIVISION FINAL PLAT CRITERIA: § 7.16.070(f), Final Plat: The application was reviewed in conformance with § 7.16.070(f), Final Plat and this application is found to be generally consistent with the criteria of this Section. 3. GENERAL PROCEDURES & REQUIREMENTS CRITERIA: § 7.16.010(f)(1), Review Criteria: The applications were reviewed in conformance with § 7.16.010(f)(1), and these applications are found to be consistent with the criteria of this Section. 4. DEVELOPMENT BONUS CRITERIA § 7.16.170(a) Review Criteria The applications were reviewed in conformance with § 7.16.170(a), and this application is found to be generally consistent with the criteria of this Section. CONDITIONS (SUB23001): 1. Engineering documents addressing site access, installation of utilities, drainage structures, snow storage improvements, debris flow structures, and floodplain analysis, shall be required and approved to the satisfaction of the Director of Public Works prior to the issuance of the initial construction permit (e.g., grading or building permit). 2. Utility Verification and or any agreements with the ERWSD or Upper Eagle Regional Water Authority are required prior to the recording of the Final Plat. 3. Community Housing Deed Restrictions as set forth in the Development Agreement are required to be finalized prior to the recording of the Final Plat and in place prior to closing on any unit. Record of Decision: SUB23001 Page 2 of 2 4. All deed restrictions are subject to approval and annual compliance review by the Town of Avon, unless enacted by an outside housing authority. 5. The executed Final Plat and the Declarations and Covenants must be reviewed and approved by Staff (e.g., Town Attorney) prior to recording. 6. Site Improvement Agreement and revised Development Agreement shall be finalized prior to recording the Final Plat. 7. The Final Plat must be fully executed prior to the issuance of the initial construction permit (e.g., grading or building permit). 8. The Applicants shall participate in any studies or similar in conjunction with the Town of Avon concerning future pedestrian or public transportation improvements, relative to this project location. 9. ILCs are required for all structures as required by the Avon Municipal Code Section 15.10.060. DEVELOPMENT BONUS REQUEST: Approval for the proposed external/master perimeter lot setbacks as well as internal lot setbacks, as requested in the application. APPROVED JUNE 13, 2023 by the AVON TOWN COUNCIL By: Attest: Amy Phillips, Mayor Miguel Jauregui Casanueva, Town Clerk AVON REGULAR MEETING MINUTES TUESDAY MAY 23, 2023 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 1 1. CALL TO ORDER AND ROLL CALL The meeting was hosted in a hybrid format, in-person at Avon Town Hall and using zoom.us. Mayor Amy Phillips called the May 23, 2023 Council regular meeting to order at 5:11 p.m. A roll call was taken, and present were Councilors Chico Thuon, Lindsay Hardy, Ruth Stanley, and Mayor Phillips and Mayor Pro Tem Tamra Underwood. Councilor RJ Andrade joined the meeting at 5:51 p.m. Councilor Rich Carroll was absent. Also present were Town Manager Eric Heil, Town Attorney Karl Hanlon, Deputy Town Manager Patty McKenny, General Government Manager Ineke de Jong, Town Clerk Miguel Jauregui Casanueva, Police Chief Greg Daly, Community Development Director Matt Pielsticker, Recreation Director Michael Labagh, Finance Director Scott Wright and incoming Finance Director Paul Redmond, Cultural Arts and Special Events Manager Danita Dempsey, Public Works Director Eva Wilson, Public Operations Manager Gary Padilla, Senior Planner Jena Skinner, and Master Gardener Jessie Sipkovsky. 2. APPROVAL OF AGENDA Video Start Time: 00:11:55 Mayor Phillips initiated the meeting with the Agenda approval process and requested that two items be added after public comment and before business item 5.1. The first was a proclamation for years of service for Joye Gelo, Town of Avon Payroll Administrator. The second was the viewing of the Avon 2022 Year in Review video. With no further discussion, Councilor Thuon presented a motion to approve the Agenda, as amended. Councilor Hardy seconded the motion. It was approved with a 5-0 vote of those present. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:12:52 Mayor Phillips asked if there were any conflicts of interest related to the Agenda, and none were disclosed. 4. PUBLIC COMMENT Video Start Time: 00:13:02 Mayor Phillips explained that public comment can be made by participating in the meeting in person, via zoom’s video/audio, via telephone, or via email. She then clarified that the public comment section is intended for items not listed in the Agenda, and participation by members of the public is limited to 3 minutes. She asked if there was any public comment from those present in the room or on Zoom. Krista Keiser, resident of Eagle Vail, took the podium to thank Councilor Andrade for his vote against the flying of the Pride Flag. She referenced a Vail Daily article that covered Council’s vote over the Pride Flag. She stated disappointment to those Councilors present over the 6-1 vote that she believes doesn’t represent the Valley and noted it is a good reminder that every vote counts and Council races are important. She said she is a frequent shopper and diner in Avon, and she finds it difficult to see the Pride Flag as a representation of her so she will try very hard not to spend her money in Avon when during its display. She closed her remarks offering a prayer for elected officials to vote differently next year. Kelly Ricca, resident Eagle Vail, took the podium and read excerpts of a text she attributed to Gays Against Groomers. Highlights from those excerpts included that years ago Pride was about LGBTQ people stepping out to show the world they are normal people deserving of equality and marriage AVON REGULAR MEETING MINUTES TUESDAY MAY 23, 2023 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 2 rights, but as the years have gone by, the celebration has morphed from one of love and equality to a raunchy display of overt sexuality and debauchery. She continued to highlight excerpts which included concern that children are being brought to parades where grown adults are selling sex toys, inappropriately dressed, and displaying inappropriate behavior. She cautioned that it is not empowerment and sex positivity, and it is the destruction of innocence. She noted appalment at half- naked performers taking money from young children like strippers, as kids are being taught how to pole dance while they are indoctrinated and sexualized in the name of LGBTQ acceptance. She closed remarks stating that the phenomenon of Pride is on a dark road to legal pedophilia. She then thanked Councilor Andrade for his vote against displaying the Pride Flag. Julie Morahan, resident of Eagle, took the podium to thank Councilor Andrade and state the Pride Flag is political and divisive. Laurie Diversey, resident of Eagle, took the podium and thanked Councilor Andrade for his commonsense vote since she believes the Pride Flag is divisive and unfair. She noted it would be nice to see a heterosexual flag occasionally but is happy to just stick to the American Flag, the Colorado Flag and the Avon Flag. Pat Hite, resident from Gypsum, took the podium and thanked Councilor Andrade for voting against the Pride Flag, noting it shows his great courage and character as a man, to stand up for what he believes in when the odds are against him. No other public comment was made in person nor on Zoom. 5. AMENDED BUSINESS ITEMS 5.1. Proclamation for Joye Gelo, Town of Avon Payroll Administrator, for her years of service. Video Start Time: 00:23:25 Mayor Phillips read a Proclamation for years of service for Joye Gelo, Town of Avon Payroll Administrator. Mayor Pro Tem Underwood made a motion to approve the Proclamation. Councilor Hardy seconded the motion. It was approved with a 5-0 vote of those present. 5.2. Viewing of the Avon 2022 Year in Review Video Video Start Time: 00:27:45 Mayor Phillips directed staff to project the Avon 2022 Year in Review Video for Council. Deputy Town Manager delivered a brief presentation on the origin of the video, thanking those involved. 6. BUSINESS ITEMS 6.1. Resolution 23-09 Approving USDA Composting Grant Application (Sustainability Coordinator Charlotte Lin and Deputy Town Manager Patty McKenny) Video Start Time: 00:31:43 Deputy Town Manager Patty McKenny delivered a presentation related to the USDA Composting Grant Application. Councilor Stanley asked where compost goes after it is picked up, and Sustainability Coordinator Sarah Smith Hymes joined the podium to explain composting destination and opportunities to contract composting in Avon while highlighting climate action impacts. AVON REGULAR MEETING MINUTES TUESDAY MAY 23, 2023 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 3 There was no public comment in person nor on Zoom. Councilor Hardy made a motion to approve the Proclamation. Councilor Stanley seconded the motion. It was approved with a 5-0 vote of those present. 6.2. Work Session: Water Service SFE Assignments and Future Development (Town Manager Eric Heil and Planning Director Matt Pielsticker) Video Start Time: 00:41:22 Town Manager Eric Heil delivered a presentation on Water Service SFE Assignments and Future Development, accompanied by Planning Director Matt Pielsticker. Heil noted that Steve Coyer and Sarah Smith-Hymes are both present in the room and Eagle River Water and Sanitation District Board Member and could also be valuable resources for the work session. Discussion included that land use and future developments should match water availability, with a comprehensive view on sustainable growth and with priority for community housing. It also included the value of moving away from water fees based on the SFE multipliers, and the value of use data to understand baseline measures and areas where water conservation can be achieved. Mayor Pro Tem Underwood suggested to staff that the Town begin exploring how best to institutionalize the principle that housing, and water should go together and requested policy that community housing receive priority access to water allocations. At 5:51 p.m., Councilor Andrade joined the Council Meeting for its remainder. After deliberations concluded, Councilors unanimously directed Town Manager Eric Heil to proceed on Item #1 and request additional SFEs service guarantees and an amendment to the water lease agreement with the Authority in order to serve two housing projects in the Village (at Avon), and Item #2 to review Avon’s existing estimates of SFEs to serve current zoning and explore potential policies that may allocate or prioritize a portion of the remaining available SFEs to Community Housing. 6.3. Public Hearing: Resolution 23-10 Tract Y Subdivision Review and Approval (Planning Director Matt Pielsticker) Video Start Time: 01:13:50 Senior Planner Jena Skinner delivered a presentation on the proposal to approve Resolution 23-10 on behalf of Planning Director Matt Pielsticker. Mayor Phillips highlighted that this is the only public hearing to be had in the approval process of the Resolution. Deliberations from Councilors included the assurance that all 53 units that are part of the project will be part of deed restricted housing, as documented in the Development Agreement, the Public Improvement Agreement, in individualized covenants for each unit, in the plat and zoning restrictions. Additional topics covered included concerns on flooding and the 100-year flood standard, drainage, the feasibility of expanding or modifying the Metcalf ditch, snow accumulation and snow plowing, and use of the conservation easement. Bobby Ladd, project architect took the podium in representation of Hidden Valley Development, LLC to answer additional questions from Council and gave a brief historical review of this Development. Mayor Phillips asked Town staff to explore the addition of pedestrian friendly access to a new bus stop. Consensus among Councilors indicated support to move forward with the Development. As part of the public hearing, Mayor Phillips asked for public comment and there was no public comment made in person nor on Zoom. AVON REGULAR MEETING MINUTES TUESDAY MAY 23, 2023 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 4 Mayor Pro Tem Underwood noted some inconsistencies between the conditions for the development included in the memo (page 40 of the packet) and in the Resolution (page 143 of the packet), and asked for the following amendments to the conditions of Resolution 23-10: 1. Engineering approval for the site access, installation of utilities, snow storage plan, flood plain analysis, debris flow and drainage structures shall be required prior to the issuance of a building permit. 6. PIA Site Improvement Agreement and final Development Agreement shall be finalized prior to recording the Final Plat. 9. ILCs are required for all structures as required by the Avon Municipal Code Section 15.10.060. With no further discussion, Mayor Pro Tem Underwood presented a motion to approve Resolution 23- 10, as amended. Councilor Stanley seconded the motion. It was approved with a 6-0 vote of those present. 6.4. Work Session: Review of Trees on Avon Road (Public Works Director Eva Wilson and Master Gardener Jessie Sipkovsky) Video Start Time: 02:48:46 Public Operations Manager Gary Padilla delivered a presentation related to the review of trees on Avon Road on behalf of Town Arborist Joe Gilles. Master Gardener Jessie Sipkovsky delivered a presentation on the demonstration garden to be deployed at the front of the municipal building, outside the western facing windows of the Council Chambers. Deliberations included the pros and cons of using service berries, which feed small animals and do not attract bears, as well as limited use of Hollyhocks which can become invasive. Additionally, they included the use of trees to hang holiday lights, suggestions from Councilor Thuon to improve holiday light esthetics at roundabouts, and a strategy to deal with beaver kill and beavers on the river. Padilla added that CPW and he are exploring alternatives to relocate the beavers. Mayor Pro Tem Underwood reminded staff that the electrical transformer at the entrance to the municipal building is unsightly and was advised that the Town is exploring strategies to get it painted by a local artist. Deliberations also covered the topic of a $60k award of a grant that will cover 75% of the cost of the demonstration gardens to be installed in spring of 2024. 6.5. Resolution 23-11 approving the Easement Agreement for Westgate Plaza (Public Works Director Eva Wilson) Video Start Time: 03:12:05 Public Works Director Eva Wilson delivered a presentation on Resolution 23-11 for the approval of the Easement Agreement for Westgate Plaza. Deliberations included the process of inventorying improvements in the GIS system where Wilson added that GIS data already contains approximately 75% of drainage assets. No public comment was made in person nor on Zoom. After deliberations, Councilor Thuon moved to approve Resolution 23-11. Councilor Stanley seconded the motion. It was approved with a 6-0 vote of those present. AVON REGULAR MEETING MINUTES TUESDAY MAY 23, 2023 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 5 6. MINUTES 6.1. Approval of May 09, 2023, Regular Council Meeting Minutes (Town Clerk Miguel Jauregui Casanueva) Video Start Time: 03:16:40 With no discussion or correction, Councilor Stanley moved to approve the Minutes from May 09, 2023, as presented. Councilor Thuon seconded the motion. They were approved with a 6-0 vote of those present. 7. WRITTEN REPORTS 7.1. Planning & Zoning Commission May 16 Abstract (Planner 1+ Max Morgan) 7.2. Monthly Financials (Senior Accountant Dean Stockdale) 7.3. Year in Review Video (Marketing & Communications Manager Elizabeth Wood) 7.4. Food Truck Program Update (Special Events Coordinator Chelsea Van Winkle) 7.5. CC4CA Policy Update (Sustainability Coordinator Sarah Smith Hymes) 7.6. Construction Activity Report (Development Coordinator Emily Block) 7.7. Draft May 3rd Finance Committee Meeting Minutes (Town Clerk Miguel Jauregui Casanueva) 7.8. Draft May 16th Health & Recreation Committee Meeting Minutes (Aquatics Superintendent Kacy Carmichael) ** Indicates topic will be discussed at future agenda’s 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES Video Start Time: 03:17:10 Councilor Thuon challenged his fellow Councilors and Town Staff to come up and see the beautiful views of Wildridge and reminded those present that Wildridge is actually part of Avon’s community, but its little park is not on par with other parks in Town. He asked that there be strategic planning on how to improve that park going forward and hoped this remark will ignite conversation between Public Works Director Eva Wilson and himself on the matter. He then cautioned that Old Trail Road has excessive speeding of vehicles travelling 40-50 MPH on a small road, and he worries there will be a deadly statistic. He asked for speed humps and writing tickets. He mentioned stop signs that existed on that road under Police Chief Bob Ticer that were taken down. Deliberations included his worry that fellow councilors and the Town Manager don’t go visit that park, which Mayor Pro Tem Underwood and Councilor Andrade mentioned they do. Councilor Stanley thanked those public commentators who joined the start of the meeting to voice their concerns over the display of the Pride Flag. She highlighted that people should attend public meetings and that she was saddened that they were not present during the deliberations regarding the Pride Flag. She added that in 2024 she will be asking for Saint P atrick’s flag to be flown on Saint Patrick’s Day. Mayor Phillips mentioned that the Council Retreat scheduled for June 20 did not yet have a topic. With no o bjections from her fellow Councilors, that retreat was cancelled. She then referenced the Employer’s Council Report that her fellow Councilors will receive on the Town Manager’s performance and 360 evaluations. Mayor Pro Tem Underwood asked that Council be presented with a packet containing the previous year’s Town Manager evaluation materials along with these years, to facilitate their review during the June 6 executive session to be held for that purpose. AVON REGULAR MEETING MINUTES TUESDAY MAY 23, 2023 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 6 Councilor Hardy asked General Government Manager Ineke de Jong to remind Council and the public about the Town Clean Up and Sustainability Fair to take place at 1 Lake Street on Wednesday, M ay 24, 4:30-7:30 p.m. 9. ADJOURN There being no further business before Council, Mayor Phillips moved to adjourn the regular meeting. The time was 08:24 p.m. These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The 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: Miguel Jauregui Casanueva, Town Clerk APPROVED: Mayor Amy Phillips ___________________________________ Tamra Underwood RJ Andrade Lindsay Hardy Ruth Stanley Chico Thuon Page 1 of 2 AVON PLANNING & ZONING COMMISSION MEETING ABSTRACT TUESDAY, JUNE 6, 2023 100 MIKAELA WAY – AVON COUNCIL CHAMBERS 1. CALL TO ORDER AND ROLL CALL ACTION: THE MEETING WAS CALLED TO ORDER BY PZC CHAIRPERSON ANTHONY SEKINGER AT 5:01 PM. A ROLLCALL WAS TAKEN, AND PLANNING COMMISSIONERS PRESENT WERE BRAD CHRISTIANSON, BILL GLANER, ANTHONY SEKINGER, AND OLIVIA COOK. ALSO PRESENT WERE TOWN MANAGER ERIC HEIL, DIRECTOR MATT PIELSTICKER, AICP, SENIOR PLANNER JENA SKINNER, AICP, AND PLANNER 1+ MAX MORGAN. COMMISSIONER SCHAEFER WAS NOT PRESENT AT THE TIME OF ROLLCALL BUT JOINED THE COMMISSION AT 5:04PM. COMMISSIONER HYATT WAS NOT PRESENT. THIS WAS THE FIRST PZC MEETING FOLLOWING THE RESIGNATION OF COMMISSIONER RYAN WOLFFE 2. APPROVAL OF AGENDA ACTION: COMMISSIONER GLANER MADE A MOTION TO APPROVE THE MEETING AGENDA . COMMISSIONER SCHAEFER SECONDED THE MOTION , AND THE MOTION WAS PASSED 5-0. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST OR EX PARTE COMMUNICATION RELATED TO AGENDA ITEMS ACTION: T HERE WERE NO CONFLICTS OR EX PARTE COMMUNICATION DISCLOSED. 4. PUBLIC HEARING 4.1. AVON DOWNTOWN DEVELOPMENT AUTHORITY PLAN (TOWN MANAGER ERIC HEIL ) PUBLIC COMMENT: NONE ACTION: COMMISSIONER GLANER MOTIONED TO RECOMMEND THE PLAN TO FORM A DOWNTOWN DEVELOPMENT AUTHORITY (“DDA”) WITH A CONDITION FOR MORE INFORMATION ON THE IMPACT OF TAX ALLOCATION RELATED TO THE DDA. COMMISSIONER COOK REQUESTED THAT THE CONDITION INCLUDE THE DEVELOPMENT AND APPLICATI ON OF A COMMUNITY HOUSING PLAN AS A MEANS TO TARGET AREAS FOR FUTURE PLANNING AND DEVELOPMENT . COMMISSIONER SCHAEFER REQUESTED THAT THE CONDITION INCLUDE THE ASSESSMENT OF THE SCOPE OF IMPACT ON TOWN OF AVON FINANCES AS IT RELATES TO THE DDA, SECONDED THE MOTION, AND THE MOTION PASSED WITH A 5-0 VOTE . 5. REFERRAL ACTION: COMMISSIONER HYATT MOTIONED TO APPROVE THE CONSENT AGENDA . THE MOTION WAS SECONDED BY COMMISSIONER GLANER, AND ALL WERE IN FAVOR. T HE MOTION PASSED UNANIMOUSLY WITH A 6-0 VOTE. 6. CONSENT AGENDA 6.1. MAY 16, 2023, PLANNING AND ZONING COMMISSION MEETING MINUTES 6.2. RECORD OF DECISION HIDDEN VALLEY ESTATES - TRACT Y ACTION: COMMISSIONER GLANER MADE A MOTION TO APPROVE THE CONSENT AGENDA . COMMISSIONER SCHAEFER SECONDED THE MOTION , AND THE MOTION WAS PASSED 5-0. Page 2 of 2 7. FUTURE MEETINGS 7.1. J UNE 20, 2023 7.2. J ULY 5, 2023 (WEDNESDAY ) 8. ADJOURN THE MEETING WAS ADJOURNED AT 6:28 PM. THIS MEETING ABSTRACT IS 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 RECORDING OF THE MEETING, WHICH CAN BE OBTAINED FROM THE TOWN CLERK’S OFFICE BY SUBMITTING A PUBLIC INFORMATION REQUEST. RESPECTFULLY, MAX MORGAN [(970) 748-4049] [gdaly@avon.org] TO: Honorable Mayor Amy Phillips and Avon Council members FROM: Greg Daly, Chief of Police RE: Avon Police Department Disposition on Forfeited Properties for 2022 (Report Only) DATE: June 13, 2023 SUMMARY: In accordance with Avon Town Resolution 2000-12, “Section 4. The committee shall, each year, submit a written report to the Town Council concerning forfeited moneys or property received during the year and an accounting of how such monies were expended during the year.” The forfeited monies in the Forfeiture Account can only be used for law enforcement training or equipment expenditures only. These monies accrue from adjudicated criminal cases or through civil forfeiture processes. The opening balance for 2022 was $187.94. There were no receipts or expenditure in 2022. The closing balance for 2022 was $187.94. Respectfully Submitted, Greg Daly Chief of Police # # # 970-748-4083 clin@avon.org TO: Honorable Mayor Phillips and Council members FROM: Charlotte Lin, Sustainability Coordinator RE: 2023 Recycle Colorado Award for Outstanding Outreach DATE: June 1, 2023 SUMMARY: On Monday, May 22, the Town of Avon received an “Outstanding Outreach” award from Recycle Colorado in recognition of its recycling education program, Recycle Together, for the recycling ordinance that will come into effect on November 1st, 2023. BACKGROUND: Every year, Recycle Colorado seeks nominations for their Annual Recycling & Composting Awards. These prestigious awards recognize governmental entities, individuals, companies, media and organizations for their excellence in recycling and composting. The Outstanding Outreach Award is given to an individual, media outlet, educational institution (college, university, public/private school, school district, etc.), municipal entity (city, county, or state government) or nonprofit organization that in the last year has worked to promote recycling, composting or waste reduction in Colorado. This could be through a community outreach program or a high -impact story that was covered in the media. OUTCOME: The Town of Avon’s Recycle Together education campaign was nominated by Walking Mountains Science Center for the Outstanding Outreach award. The Town of Avon stands out as being the only mountain town amongst the award winners. While staff is greatly encouraged by this recognition, we recognize that we will continue the outreach and education efforts both for this year’s November 1 st recycling ordinance compliance deadline and beyond. Thank you, Charlotte (970) 748-4087 ewood@avon.org TO: Honorable Mayor Phillips and Council members FROM: Elizabeth Wood, Communications Manager RE: 2022 Website Analytics DATE: May 30, 2023 SUMMARY: The Town of Avon website (Avon.org) is hosted by Civic Plus, creator of web-based software for local governments. The software offers easily accessible data through Google Analytics, which can be synthesized for any time period to understand website user behavior. In an effort to help Council understand popular pages and searches on the website, below is an overview of website analytics from January 1, 2022 – December 31, 2022. During that time period, there were 497,999 unique pageviews to our website. A unique pageview represents the number of users visiting a specific page. During that time period, July 3, 2022 was the most popular day to visit our website, with 10,799 pageviews on our website on that day. The below chart shows the top-ten most popular pages on our website. Page Number of Unique Views Avon.org (Homepage) 64,841 Recreation 33,648 Aquatics 17,894 Salute 15,536 Mobility 15,056 AvonLIVE! 15,024 CASE 14,168 Jobs 12,232 Harry A. Nottingham Park 10,307 Calendar 8,978 Rec Center General Info 8,764 The top search terms during 2022 were as follows: 1. Pickleball (227) 2. Jobs (148) 3. Bus (138) 4. Parking (97) 5. Short Term Rentals (72) 6. Avon Rec Center Anniversary Punch Card Sale (48) 7. Gym (48) 8. Rec Center (47) 9. Events (39) 10. Membership (39) Thank you, Liz