The URL can be used to link to this page

TC Council Packet 01-12-2004STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON 1 NU 11;, M Rj Nr-Kt:UT UlVtN I NAT A SPECIAL WORK SESSION OF THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, WILL BE HELD JANUARY 12, 2004, AT 10:30 AM TO BE HELD AT THE AVON MUNICIPAL BUILDING LOCATED AT 400 BENCHMARK ROAD, AVON, COLORADO FOR THE PURPOSE OF DISCUSSING AND CONSIDERING THE FOLLOWING: 10:30 AM-11:00 AM 1) Village at Avon Municipal Service Invoice (John Dunn) Staff report with respect to a revised municipal service invoice 11:00 PM-12:00 PM 2) BBC Research & Consulting (Ford Frick) Review of economic development considerations 12:00 PM-12:15 PM 3) Council / Staff Updates - a. Traffic (Councilor P. Buckley) Consent Agenda Questions AND SUCH OTHER BUSINESS AS MAY COME BEFORE THE COUNCIL. THIS MEETING IS OPEN TO THE PUBLIC. TOWN OF AVON, COLORADO BY: Patty McKenny, Town Clerk Estimated times are shown for informational purposes only, subject to change without notice. POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON JANUARY 9, 2004: ? Avon Municipal Building, Main Lobby ? Alpine Bank, Main Lobby ? Avon Recreation Center, Main Lobby ? City Market, Main Lobby Town Clerk\Council\Agendas\2003\Avon Council Meeting. 04.01.12 MEMORANDUM FROM: TOWN ATTORNEY TO: TOWN COUNCIL SUBJECT: MUNICIPAL SERVICES INVOICE DATE: January 13, 2004 With this memorandum is a copy of a letter which has been sent to Darlene Sisneros, attorney for Traer Creek Metropolitan District. With that letter is a revised municipal services invoice for the year 2004. The invoice has been revised to reflect the actual cost of police services, based upon the actual cost incurred in 2003. The calculation of the cost also accompanies this memorandum. The letter should be self-explanatory. We are throwing out the formula contained in the Annexation and Development Agreement (7.6 mills times assessed valuation) and billing Traer Creek for actual cost. By the terms of the Annexation and Development Agreement for The Village, payment of this invoice is due in twelve installments. Billing for the January 1 installment, based upon the revised calculation, was delivered to Traer Creek last week. If you have any questions of me regarding this matter, I request that you adjourn into executive session. jwd@dunncausey.com January 8, 2004 Darlene Sisneros, Esq. McGeady Sisneros, P.C. 1675 Broadway, Suite 2100 Denver CO 80202 Re: Municipal Services Invoice Dear Darlene: Enclosed with this letter is a revised Municipal Services Invoice, including a corrected estimate of the cost of police services for the year 2004. This revised invoice is, of course, sent to you in compliance with Section 4.10 of the Annexation and Development Agreement dated October 13, 1998, as amended by the First Amendment to Development Agreement dated November 13, 2001 ("the Annexation Agreement"). As will be apparent, the police services portion of the invoice has been corrected to reflect the Town's estimate of the actual cost of services in 2004, based upon the actual cost of those services in 2003. As will also be apparent, it has not been prepared in accordance with the formula contained in Section 4.10(a)(iv) of the Annexation Agreement. As you know, that formula calls for the Town to multiply 7.6 mills by the assessed valuation of the property comprising The Village. Representatives of Traer Creek have been aware for some time now that the formula contained in Section 4.10(a)(iv), is in error and causes an estimate that is very significantly less than the actual cost of police services being provided to The Village. Thus, in 2003, the initial estimate for the cost of police services to The Village, calculated according to the formula, was only $150, whereas the actual cost to the Town of providing police services was $170,657.91. It should be apparent that continued use of the formula will place an unfair burden on present taxpayers in the Town. It appears that, in 1998, EMD Limited Liability Company aggressively overestimated the pace of development that would occur within The Village. For example, according to the projections of EMD's consultants in 1998, the formula now contained in the Annexation Agreement would have generated in excess of $200,000 for police services in 2004, based on an assessed valuation of $39,255,000. Further, through mutual error, the selection of the formula failed to recognize that all of the residential development through at least 2004 would be affordable, tax-exempt housing. Finally, the plan of development has materially changed from mixed residential/commercial development adjacent to the existing Town core to commercial development adjacent to the I-70 Interchange. As one of the scriveners of the Annexation Agreement, there is no doubt in my mind that the intent of the Annexation Agreement was that, in consideration of Traer Creek's receipt of 100% of excise tax revenues, the Town would be compensated for the actual cost of municipal services. That intent is reflected in Recital E of the Agreement, which speaks to "the equitable sharing of tax revenues and costs relating to the Project." Provision of police services is a matter of the public health and safety and of paramount importance to the Town and, I am sure, to Traer Creek. It is therefore imperative that Traer Creek, as a matter of good faith and fair dealing, promptly agree to any necessary amendment to the Agreement to cause its language to comport with its intent. Further, such amendment, relating to the public safety, cannot be part of the negotiation of other issues between the Town and the developer. I look forward to your response on behalf of the District and the opening of negotiations. Pending reaching agreement on an amendment, it is the expectation of the Town that Traer Creek will promptly pay monthly installments of the Municipal Services Invoice including the revised estimate of the cost of police services. Also, we will shortly be providing you with the reconciled cost of municipal services for 2003, based upon actual cost. As appears from the enclosed Calculation of Police Services, The Village at Avon, 2003 Estimate dated January 7, 2004, we currently expect that an additional $170,657.91 will be due at that time. Yours very truly, DUNN & CAUSEY, LLC John W. Dunn JWD:ipse cc. Mr. Brooks Mr. Wright Mr. Murray Traer Creek LLC TOWN OF AVON REVISED MUNICIPAL SERVICES ESTIMATE FOR THE YEAR 2004 January 5, 2004 Roads & Streets - $271,946.65 Per attached worksheet Transportation Services -- $0.00 Police Protection - $279,705.19 Per attached worksheet Municipal Surcharge - $37,342.55 $551,651.84 X 7.5% _ $41,373.89 Capital Equipment - $10,268.38 Per attached worksheet Town of Avon Property Tax Revenue from the Village - $52,684.30 8.956 mills X $5,882,570 = $52,684,296.92 divided by 1,000 = $52,684.30 Total Charges -- $599,262.77 Total Property Tax Revenue -- (52,684.30) Revised Municipal Services Estimate for 2004 $546,578.47 Revised Calculation of Roads & Streets Service The Village (at Avon) 2004 January 5, 2004 Town of Avon Street Inventory 2002 HUTF Report Total Lane Miles Avon Street System Per 2002 HUTF Report 39.37 Lane Miles From 2002 State Highway Finance Report Section III. Disbursements for Road and Street Purposes A.2. Maintenance $ 760,811 A.3.a. Traffic control operations 28,819 A.3.b. Snow and ice removal 254,791 AA General Administration & Miscellaneous 39,428 Total Outlay per Report $1,083,849 Average Cost Per Lane Mile Per Day: $1,083,849/39.37 Miles/365 Days = $ 75.42 Per Lane Mile Per Day Village Total Lane Miles - January 1, 2004 - December 31, 2004 365 Days Chapel Place Extension 0.22 Lane Miles East Beaver Creek Blvd. Extension 2.02 Lane Miles Yoder Ave. Fawcett Road Post Blvd. (Highway 6 to I-70) Swift Gulch Road (PW - Buffalo Ridge) Nottingham Ranch Road (Post Blvd. - Cul-de-Sac) Total Village Projected Additions September 15, 2004 - December 31, 2004 Swift Gulch Road (Buffalo Ridge - Post Blvd.) Post Blvd. (I-70 - Swift Gulch Road) Total Addition September 15, 2003 Projected Maintenance Cost: 1.11 Lane Miles 0.54 Lane Miles 3.28 Lane Miles 1.52 Lane Miles 0.70 Lane Miles 9.39 Lane Miles 107 Days 1.26 Lane Miles 0.28 Lane Miles 1.54 Lane Miles 9.39 Lane Miles x 365 Days x $75.42/Lane Mile/Day = $ 259,518.94 1.54 Lane Miles x 107 Days x $75.42/Lane Mile/Day = $ 12,427.71 Total Projected Maintenance Cost $ 271,946.65 Actual 2004 Lease Purchase Payment - Plow Truck $ 21,073.84 2004 Lease Purchase Payment - Bobcat 6,642.27 2004 Lease Purchase Payment - Street Sweeper 29,078.04 Total Lease Purchase Payments $ 56,794.15 Multiplied by Pro-rata Share of Lane Miles as of 12/31/03 X 18.08 % Street & Road - Rolling Stock Capital Expenses Total Lane Miles Avon Street System Per 2002 HUTF Report 39.37 Lane Miles Village Total Lane Miles - December 31, 2003 Total Lane Miles Avon Street System 8.69 Lane Miles 48.06 Lane Miles Village Pro-Rata Share Capital Costs 8.69/48.06 x 100 =18.08% Village Share of Capital Expense Estimated Streets & Roads Service Cost - 2004 Maintenance & Snow Removal Capital Equipment Total Estimated Reimbursable Expenses $10,268.38 $ 271,946.65 $ 10,268.38 $ 282,215.03 2 Calculation of Police Services The Village at Avon 2004 Revised January 5, 2004 Town of Avon Statistics - 2003 Estimated Projected Cost of Police Services - 2003 $ 1,621,256 Total Commercial Square Feet - 2003 1,397,809 Total Residential Dwelling Units - 2003 3,532 Total Weighted Average Lane Miles 2003 44.94 Per Commercial Square Foot Cost - 2003 $ 1.16 Per Residential Dwelling Unit Cost - 2003 $ 459.02 Per Lane Mile Cost - 2003 $ 36,076.04 Calculation of Police Services - 2004 Estimate Commercial Factor Estimated Commercial Square Feet Village 307,809 Per Commercial Square Foot Cost x $ 1.16 $ 357,058.44 Factor x 33.33% Total Commercial Cost $ 119,007.58 Residential Factor Estimated Residential Dwelling Units Village 244 Per Residential Dwelling Unit Cost x $ 459.02 $ 112,000.88 Factor x 33.33% Total Residential Cost $ 37,329.89 Lane Cost Factor Estimated Weighted Avg. Lane Miles Village 10.26 Per Lane Mile Cost x $ 36,076.04 $ 370,140.17 Factor x 33.33% Total Lane Mile Cost $ 123,367.72 Total Estimated Cost Police Services - 2004 $ 279,705.19 Payment for Capital Expenses Pursuant to Section 4.10(a)(vi)(A) of the Annexation and Development Agreement The following items of equipment (rolling stock) are required to perform snow removal and roadway maintenance within the Village beginning in 2003. International Plow Truck $125,629 Bobcat Toolcat 39,597 TYMCO Street Sweeper 173,345 Total Estimated Cost 3 5 571 Village Total Lane Miles as of December 31, 2003 is 8.69 Lane Miles Total Lane Miles Avon Street System as of December 31, 2003 is 48.06 Lane Miles Village Pro-Rata Share of Capital Costs 8.69/48.06 x 100 = 18.08% Pursuant to the Annexation and Development Agreement, the annual required payment is based on the pro-rata share of lane miles within the Village and maintained by the Town. The Town plans to finance the purchase of this equipment in 2003 through a master lease-purchase agreement with a term of 7 annual payments. The first annual payment of $56,794.15 is due in 2004. Based upon the above actual costs, using an amortized cost over 7 years at 4.15%, and a pro-rata share of lane miles within the Village of 18.08%, the initial annual cost in 2004 for the above items is $10,268.38, as follows: Actual 2004 Lease Purchase Payment - Plow Truck $ 21,073.84 2004 Lease Purchase Payment - Bobcat 6,642.27 2004 Lease Purchase Payment - Street Sweeper 29,078.04 Total Lease Purchase Payments 56,794.15 Multiplied by Pro-rata Share of Lane Miles as of 12/31/03 X 18.08 % Village Share of Capital Expense $10,268.38 1/2/04 Memo To: Honorable Mayor and Town Council Thu: Larry Brooks, Town Manager From: Ruth Borne, Director -Community Development Tambi Katieb, AICP - Community Developmen Date January 6, 2004 Re: BBC Research & Consulting Economic Planning Proposal Summary On December 19"', 2003, staff received a letter from Ford Frick of BBC Research & Consulting in response to the Request for Proposals (RFP) to update the Town Comprehensive Plan. While not submitted as a response to the Comprehensive Plan request, Ford instead submitted a letter outlining an alternative approach to the process. Ford largely suggests that the economic element of the Comprehensive Plan be more thoroughly examined in a strategic approach and as a precursor to the development of policy goals and objectives associated with the Comprehensive Plan process. Staff previously recommended a similar approach at your 2003 budget retreat. A special work session is scheduled to discuss and consider the recommendations put forward by Ford on Monday, January 12, 2004. Town Manager Comments: Attachments: December 18"', 2003 letter from BBC Research & Consulting BBC Research & Consulting Economic Planning Proposal Page 1 of 1 January 12, 2004 .,! ffifflm RESEARCH & CONSULTING G E C, 1 0 2003 3773 Cherry Creek North Drive Suite 850 Denver, Colorado 80209-3827 303.321.2547 fax 303.399.0448 www.bbcresearch.com bbc@bbcresearch.com December 18, 2003 Mr. Tambi Katieb Town Planner P.O. Box 975 400 Benchmark Road Avon, Colorado 81620 Re: Avon Comprehensive Plan Dear Mr. Katieb: 0??mrnunity Davelopr net t This letter is in response to your Request for Proposals (RFP) for development of a comprehensive plan for the Town of Avon. As you will note shortly, this is not a full response to that request, or at least it is not a very responsive one. Frankly, I found the RFP frustrating and I have concerns about the practicality of the program it suggests. Instead of just walking away, I thought I would pass on these observations. I spoke with Larry Brooks and he encouraged me write this letter and suggested that I offer an alternative approach. Perhaps he was just being polite, but I have never known Larry to go out of way to be polite, so I will assume he was sincere. This letter is not intended to be arrogant or hypercritical, and I acknowledge that I do not have all the background about how the RFP came together. I also acknowledge that I may be plain wrong, but I know that some of the planning firms that have considered this RFP expressed some similar reservations and have chosen not to pursue this project. I was not at the pre-bid conference but Norris Dullea did attend and they have passed on some of their observations and share the concerns and recommendations expressed here. I have been involved with Avon for many years and I would like to see the community succeed. In that spirit, I offer the following comments. I will try to keep this short and to the point. Background I have been on the consulting side of the resort development business for 20 years and I have worked on many comprehensive plans. Typically our work involves economic impact analysis, feasibility assessment, land use planning or policy analysis. In Avon, I have worked on many projects, ranging from the initial feasibility study for the recreation center to the economic impact of the recent gondola proposal. I did the feasibility study of the Avon Town Center concept last year and completed the Wal-Mart/City Market sales tax impact study for the town in 2002. I have also done projects for other public and private interests in Eagle County, so I have a perspective on Avon from Page 2 outside of the town limits as well. In short, I think I have a good sense of the town's history, its economic evolution, current issues and general prospects. I also work in many other resort communities that share many of Avon's characteristics. The RFP My concerns with the RFP primarily fall in two areas. These are: The comprehensive plan integrated approach; and The emphasis on QOL indicators. I will address each in turn. Comprehensive Plan Approach The RFP calls for the development of a town comprehensive plan concurrent with the completion of various economic analyses. These efforts are quite different and require different approaches, different expertise and different forms of engagement with the community. Mixing these as suggested in the RFP will be awkward and inefficient. The town would be well served if they separated the two efforts and approached these in a serial process. Avon's most basic planning challenge lies in solidifying its future financial base and ensuring that the relatively small amount of development that remains is done in a manner that expands the town's prospects - not limits them. Beyond that broad challenge, the town faces more immediate issues involving the gondola prospect, the opportunity of a new downtown core, reformulation of the Avon Village agreement and eventual absorption of that development into the town, long standing traffic and transportation issues and revitalization of its existing commercial base. All of these challenges occur against in backdrop of competition with surrounding communities, a very limited amount of undeveloped property within the town (outside of Avon Village) and challenging market conditions in the broader resort economy. Avon needs to wrestle with these issues, which are largely economic, market and fiscal challenges, before it undertakes a comprehensive planning process. The citizenry needs analysis and options developed, digested and presented as a prelude to comprehensive planning. Analysis, assimilation and development of options is a role for town council in coordination with senior staff. The final debate over what option to choose obviously involves the community, but not in the same process or "bottoms-up" manner that comprehensive planning does. Before starting a comprehensive planning process, Avon would be well served to get data and options on the table, allow information to be digested and debated at a council level and then engage the community in an informed discussion of broad strategies and options. Currently, you have limited financial resources allocated to a very ambitious work program and you are engaging the community before you have actionable information. Completion of the comprehensive plan will require most of your budget; the collection of QOL data will absorb more Page 3 dollars, while the important task of developing an economic strategy is relegated to a lesser role. I think a restructuring of your approach would ensure that resources are efficiently used and that you make the best use of an extensive and expensive public process. Quality of Life Indicators The RFP is unequivocal in its support for the formulation and maintenance of quality of life indicators. I understand the appeal of this kind of system, but in my experience, the practical value of QOL indictors rarely justifies the expense. The problems are three fold: Data consistency. Some data are easily collected and very consistent from year to year, e.g. sales tax. Most data are not, particularly the soft indicators, such as social well being and environmental quality measures. Very few accurate and reliable data sources are consistently developed and published over time. This is particularly true in recent years as government at all levels has cut back staffing and services. Patience. Actionable data is trend data. Trends require at least three years of information. A QOL process provides very little value until trends are apparent, but by then costs and consistency problems are overwhelming. Data interpretation. Data collection is relatively easy; interpretation is more difficult. It is very easy to underestimate the cost and difficulties of collecting, organizing and interpreting data, particularly more obscure indicators of community health. Turnover in staff often means reinvention of the process on a yearly basis. Many data sources begin to lose value. Institutional memory is surprisingly hard to maintain. In my experience, most communities simply drop these programs as they become too burdensome to justify. I realize that there are strong indicator programs around, including the Yampa Valley project and the Healthy Communities Southwest Colorado initiative, but these have private funding and involve multiple jurisdictions. As much as I find their output interesting, I still question the cost effectiveness of these multi-year efforts. With limited resources available, I suggest you evaluate this QOL program before you make a sizeable commitment. The best municipal resort data collection program that I am aware of is in Breckenridge although it is very financial and real estate oriented. I encourage you to investigate their experience as a starting point. An Alternative Approach If any of these arguments make sense to you and you are willing to consider a very different approach, Norris Dullea and BBC would welcome the opportunity to discuss this project further and develop a more thorough and detailed proposal. Mark Kieffer from Norris Dullea attended the prebid meeting and has helped me fashion this response. Background materials on our respective firms are attached to this letter. Page 4 Our recommendations for study modifications would obviously begin with reducing the QOL requirements and acknowledging that this study is a precursor to a comprehensive planning process not the plan itself. As stated previously, we think there is a pressing need for Avon to solidify its financial base, position itself in the area, and ensure that the relatively small amount of development opportunity that remains is done in a manner that expands, not limits, the town's prospects. Our suggested approach for undertaking this analysis more closely mirrors a traditional business planning model than a traditional comprehensive planning model, which entails a process of data gathering, analysis, option identification, debate and decision making. This process would encompass the following four key tasks: Task 1. Prepare a clear, concise documentation of current community conditions and trends, in essence a "state of the community" report. This would identify key trends, issues, opportunities and challenges. Benchmarking against similar communities, such as Basalt, Carbondale, Frisco or Truckee, California (outside of Tahoe), might also be valuable. We see this as a more actionable version of the QOL indicators, and producing as a baseline report necessary to begin policy debates with a common understanding of issues. ¦ Task 2. Develop an independent set of observations and conclusions regarding emerging opportunities and challenges for Council/Staff/Planning Commission's review. Facilitate one or more working sessions with the appropriate policy makers, staff and interested citizens. Task 3. Based on Council feedback, develop a concise portrayal of economic projections and outline policy options and implications for council's review and direction. Task 4. Complete a final report that builds on the "state or the town" report, documents the strategy assessment process and defines strategies and tactics for achieving community goals. This report will also serve as a basis for continuation of the comprehensive planning process. From our perspective, Avon is faced with a number of challenging issues and opportunities. Among these are: reform of the current Avon Village agreement; strategies for dealing with a Beaver Creek Gondola extension; strategies for revitalizing the town's retail community; and expansion of community services in a period of declining public revenues - all set against a backdrop of declining tourism, a soft housing market, growing area retail competition and a slow "down valley migration" of economic energy. Our suggested process is focused toward town council, senior town staff, planning commission and interested citizens who want to be engaged at a strategic level that is tightly focused on solutions. As products, we envision a series of working papers and town council work sessions where analyses are reviewed and discussed and council's position developed and refined as a final report. Page 5 I think by following a process similar to the one outlined above, the town will have conscientiously analyzed and addressed the fundamental planning issues facing the community; and thus the comprehensive plan-process could become an opportunity to solicit citizen feedback and determine how these strategies translates into a physical plan. Our approach is a strategic planning methodology aimed at policy makers in preparation for a citizen driven comprehensive planning process, which eventually results in a physical and policy plan. Depending on final scope and details, this project could be completed considerably below the budgeted comprehensive planning process and it could be completed with 4-6 months. I hope these thoughts are of value and mostly I hope, however you proceed, that you get the best product possible. Please feel free to call if you would like to discuss this further. Sincerely, 4r'?r't C4??? Ford C. Frick Managing Director Ford C. Frick 1978 to present ... Associate to Managing Director, BBC Research & Consulting ... expertise in public and private development planning, urban development economics, cost benefit analysis, and public finance related to growth issues ... specialization in tourism economics, marketing and resort community planning. Mr. Frick has served as an expert witness on regional economics, market trends and growth financing in District Court. He has addressed numerous professional groups, including the Annual Meeting of the American Planning Association, the National Park Service and the National Association of Business Economists. Frick is a member of the National Geographic Society Panel of Experts on Sustainable Tourism. Frick's views on economic issues in the Western United States have been quoted in Forbes, The New York Times, The Sporting News, The Wall Street Journal and The journal of The Federal Reserve Community Redevelopment bt Public Finance Analysis ¦ Recently assisted the Town of Whistler, British Columbia in the analysis and implementation of one of North America's most aggressive tourism development plans based on community sustainability principles. ¦ Assisted the Jackson Hole Resort in developing a community management association. BBC projected net tax benefits from Teton Village, Wyoming redevelopment that should be available to support infrastructure investment. ¦ Completed comprehensive retail analysis of the Aspen, Colorado downtown including comparative analyses with other resorts, retail attributions to sub-markets, feasibility analysis of retail development and projections of commercial opportunities. Similar downtown economic development projects in Breckenridge, Mountain Village, Avon and Carbondale, Colorado ¦ Working with a design and planning firm, helped conceptualize and write regional tourism development strategy plans, new funding mechanisms and chamber/association business strategies in North Lake Tahoe, California; Teton County, Wyoming; and Snowmass Village, Colorado. ¦ Advised Town of Estes Park on feasibility of new convention center; proposed a joint venture with existing hotel in place of convention center. ¦ Currently assisting the town of Black Hawk, Colorado in the development of a tourism master plan designed to broaden that communities appeal beyond its current reliance on limited stakes gaming. ¦ Assisted national architect team with feasibility study of a new arts and cultural district in downtown Denver. Ford C. Frick (continued) Tourism Development - Financial Feasibility and Market Assessments ¦ Retained by U.S. Fish and Wildlife Service to evaluate feasibility of wildlife sanctuary at the Rocky Mountain Arsenal; other studies have examined the economic impact of hunting, fishing, interpretive museums and watchable wildlife programs. ¦ Analyzed the prospective economic costs and benefits of a proposed 13,000-seat arena in Stamford Connecticut for a private corporation with land ownership interests in nearby property. ¦ Engaged by the City of Indianapolis to determine the economic feasibility of a proposed nature center; prior study examined feasibility of proposed park renovations and aquatic center. ¦ For a multi-party client, assessed trends in the New England recreation market and documenting new business opportunities arising from these changes. ¦ Retained by a major New York-based investment firm to analyze prospective resort purchases (American Skiing Company). Services include market research, financial analysis, assessment of competitive environment and long-term business strategy development. Completed due diligence on seven resort real estate projects as part of a $150 million resort acquisition effort. ¦ For a tourism based region in Utah, conducted a feasibility and strategy plan for a major joint infrastructure investment and marketing initiative that would connect three communities by a gondola and summer trail system. ¦ Numerous projects in the Lake Tahoe area including economic impact studies on the both North and South Shores, strategic planning for reorganization of tourism promotion organizations; hotel feasibility study in Truckee and economic impact analysis for the town of Mammoth Lakes. ¦ Retained by the PGA Tour to review their investment and management options in a Florida real estate venture that includes the World Golf Hall of Fame. ¦ For the Town of Mammoth Lakes, California a multi-year, multi-faceted engagement assisting the community in negotiating agreements with Intrawest Corporation for the development of a new, 1400-unit village at the Mammoth Mountain Ski Area. Follow-on analysis looked at retail markets and prospects for retail development. ¦ Currently managing development and disposition strategy for owners of a 1,400-acre parcel near major Colorado resort town; includes strategic plan, market study and financial feasibility analysis. Education B.A., Political Science, Colorado College, 1973. Masters of Urban and Regional Planning, University of Colorado, 1977 BBC Research & Consulting Background BBC Research & Consulting is one of the oldest privately- held economic and market research firms in the Rocky Mountain West. Founded in 1970, BBC provides economic, financial, statistical, market and policy research and advisory services to businesses and governmental interests nationwide. BBC's staff of professionals includes market analysts, economists, financial analysts, urban and land planners, policy analysts, management consultants and statisticians. Experience BBC's experience is concentrated in the following areas: ¦ Real estate development and planning ¦ Retail development ¦ Tourism, recreation and resort development ¦ Cultural arts and visitor attrac- tions research ¦ Market research services ¦ State and local governments ¦ Housing needs assessments and market studies ¦ Water, energy, mineral and related resource industries. Clients In our 31-year history, BBC has completed more than 4,000 studies for public and private sector clients across the country. Our work has taken us into all 50 states and sev- eral foreign countries. Our clients range from Fortune 500 corpora- tions to local special districts. Services As specialists in the collection, analy- sis and dissemination of information, BBC emphasizes real-world services to meet the changing needs of our clients. BBC's assistance takes many forms, including. ¦ Market analysis ¦ Financial feasibility studies ¦ Strategic planning ¦ Regional economic analysis ¦ Cost/benefit analysis ¦ Demographic analysis and forecasting ¦ Policy analysis ¦ Computer modeling ¦ Business valuation ¦ Master planning ¦ Litigation support Our Credentials BBC's work has been recognized with awards from a wide range of associations including the American Planning Association, the American Marketing Association and the Public Relations Society of America. In addition, our work is frequently recognized in the media, and our staff has been quoted in the Wall Street Journal, the New York Times, USA Today, Forbes Magazine and other publications. BBC principals frequently serve as expert witnesses in litigation matters. RESEARCH & , -- - CONSULTING 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 + 303.321.2547 fax 303.399.0448 www.bbcresearch.com + bbc@bbcresearch.com Selected Clients BBC Research & Consulting has served well over 1,000 business and public entities over the past 30 years. Consulting assignments have been conducted in all of the 50 United States. A selected list of recent clients is shown below. Angel Fire Resort, New Mexico Arizona Department of Commerce Aspen, Colorado Aspen Skiing Company Aurora, Colorado Avon, Colorado Boulder, Colorado Boulder Urban Renewal Authority Breckenridge Ski Resort Breckenridge, Colorado Chandler, Arizona Cherry Creek Arts Festival, Denver Cheyenne, Wyoming Colorado Association of Ski Towns Colorado Department of Local Affairs Colorado Department of Transportation Colorado Division of Wildlife Colorado Historical Society Colorado Housing and Finance Authority Colorado Ski Country USA Colorado Springs, Colorado Colorado Symphony Orchestra, Denver Colorado Water Resources and Power Development Authority Colorado's Ocean Journey Crested Butte Mountain Resort Denver, Colorado Denver Art Museum Denver Baseball Commission Denver Center for the Performing Arts Denver Museum of Nature & Science Denver Regional Council of Governments Fairmark Development Flagstaff, Arizona Fort Collins, Colorado Heavenly Ski Resort, Lake Tahoe Historic Paramount Theater, Denver Idaho Housing and Finance Association Indianapolis Public Housing Authority Indiana Department of Commerce Intrawest USA Jackson Hole Mountain Resort Jackson, Wyoming Lakewood, Colorado Laramie, Wyoming Lowry Economic Recovery Project Mammoth Lakes, California Minnesota Historical Society Minnesota Housing Finance Authority Monarch Ski Area Mt. Bachelor Ski Area Park City, Utah Philip Morris Management Company Pocatello, Idaho Pueblo, Colorado Regional Transportation District (RTD) Rocky Mountain Mutual Housing Association Salt Lake City, Utah San Antonio Water System Safeway Stores, Inc. Silverthorne, Colorado Snowmass, Colorado Snowmass Resort Association Southern Ute Tribe Housing Authority Steamboat Ski Corporation Steamboat Springs, Colorado Summit County, Colorado Tahoe Regional Planning Agency, Nevada The Children's Museum of Denver The Colorado Rockies The Denver Foundation The Denver Nuggets The Trust for Public Land Truckee, Colorado U.S. Army Corps of Engineers U.S. Bureau of Reclamation U.S. National Park Service Vail, Colorado Vail Resorts Vestar Capital Partners Vilar Center for the Arts, Beaver Creek Western Governors Association, Denver White Mountain National Forest White River National Forest [01011 RESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www.bbcresearch.com ? bbc@bbcresearch.com Resort Community .Revitalization Strategies Although most western resorts are only a few decades old, they must continually respond to evolving market preferences, new competition and changing visitor demographics. BBC provides the market assessments, strategic planning and financial analyses necessary to develop effective revitalization plans and new business strategies. Mountain Village (Telluride) Working with urban design and planning firms, BBC assisted the town of Mountain Village in assessing its competitive strengths and weaknesses and revising its development codes to support a more realistic commer- cial development agenda. BBC's work focused on quantifying commercial and retail market prospects and developing strategies for differentiating between the Town of Telluride and the Mountain Village. i. I 3r, a Town of Mammoth Lakes Although home to the largest ski area in North America in the early 1970's, Mammoth Lakes has seen a steady erosion of market share. In 1998, Intrawest Corporation announced their intention to build a 2,000-unit village and began a joint planning effort with the town. BBC conducted a number of studies related to this large-scale revitalization effort, including analyses of retail demand, feasibility analyses for recreation and conference centers and a long-term public facility plan. Aspen Downtown As the lead of a three firm team, BBC was retained by the Town of Aspen to analyze resort area retail trends and make recommendations as to how Aspen could revitalize its commercial and retail base. BBC's work incorporated a broader urban design and community planning effort aimed at supporting Aspen's appealing mix of tourist economy and residential community. Jackson, Tahoe St Breckenridge Snowmass Resort Association BBC was retained by the Snowmass Village Resort Association (SVRA) to complete a strategic plan for the revitalization of its marketing and conference center busi- ness. Snowmass operates the largest "public model" conference center in the western mountain resorts, but has been losing market share to new facilities. The final plan focused on funding reform, facility improvements and internal membership reorganization. For three resort communities (separate assignments), BBC assisted in public/private efforts to invigorate and reposition these older resort communities. Each assign- ment involved an assessment of the resort's strengths and weaknesses, an identification of alternative strategies and the synthesis of opportunities and constraints into a com- munity plan. Colorado Association of Ski Town (CAST) In November 2001, a BBC Director gave a presentation on resort industry economic and market trends to the CAST annual meeting. Similar presentations have recently been given in Aspen, Vail, Snowmass and Breckenridge. IDIOM RESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www.bbcresearch.com + bbC@bbcresearch.com Land Development Strategic Planning Land development strategic planning has long been a vital component of BBC Research & Consulting's practice. Our expertise ranges from helping cities and counties stimulate investment and development to working with resorts and state land boards to guide future use and management of public land. BBC's land development work has focused on the Rocky Mountain West, extending across Colorado and into New Mexico, Wyoming and other Western states. Angel Fire Resort In order to compete in today's changing resort industry, ski areas are diversifying and adding new recreation amenities. New Mexico's Angel Fire Resort retained BBC to help them conduct a market and competitive analysis and develop a business plan that outlines a realistic land devel- opment strategy specific to this unusual resort. BBC's report defines a multi-year plan for balanced investment in winter and summer amenities which support a targeted series of real estate offerings, ranging from rural estate homes to time-share condos. Lake Creek Land Valuation BBC conducted a land valuation study for a 1,200 acre parcel in Eagle County, Colorado, to develop an accurate picture of the property's market value. BBC developed hard and soft costs associated with future development, including the costs of infrastructure development, a build- out schedule and an income and expense statement for the development of the property. A variety of strategies rang- ing from conservation to full development were assessed for the owner's consideration. Boulder Affordable Housing The City of Boulder retained BBC to analyze the financial consequences of programs designed to stimulate privately funded development of affordable housing options. The primary objective of the research was to demonstrate how a land owner or developer would respond to these pro- grams and assess how successful these programs would be in encouraging affordable housing development. Powderhorn Resort BBC worked with the Powderhorn Resort (Colorado) to complete a long-range development plan to help them adapt to the changing economics of resort operations. The first step was an analysis of Powderhorn's current market. By identifying existing customers, Powderhorn owners could better plan for the future. BBC's research identified how visitors currently use amenities at the Powderhom Resort and the types of amenities they expect from a mountain resort, which included expanded retail and recreational opportunities. Wyoming State Lands For a large leasee of federal public lands in Wyoming, BBC completed a market and financial feasibility study and helped structure an innovative lease proposal involving use of the state lands.This project, which remains under consideration by the Wyoming State Land Board, will increase revenue yield from this parcel by over 100 fold while allowing the state to retain property ownership and a portion of the developer profits. The Trust For Public Land BBC was retained by the Trust for Public Land to com- plete a financial and market analysis of a proposed major Routt County land purchase that would incorporate envi- ronmental protections and conservation easements with a small amount of private development. [001 RESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www hhrrrsrarrh rnm ? hhr(&hhrrxrarrh rnm Retail Market Analysis BBC is often called upon to conduct retail market and development feasibility studies. Analyses are typically for development interests analyzing new development prospects and for communities seeking to stimulate retail markets and retail sales or analyze development impacts. Frisco Wal-Mart For the Town of Frisco and the Wal-Mart Corporation, BBB analyzed the sales tax impacts of converting an exist- ing Wal-Mart to a Super Wal-Mart. BBC's research examined the Summit County market for grocery goods and likely responses of Wal-Mart's competitors. North Boulder Safeway BBC was retained by Safeway Stores, Inc. to complete a market study, financial feasibility analysis and economic impact analysis of a mixed-use commercial center in Boulder, Colorado. Town of Superior For the Town of Superior, BBC completed a 1997 evalua- tion of retail development opportunities within the town, including an assessment of the community's relationship with surrounding developments. This assessment has formed the basis for the City's very successful retail cap- ture strategy. Eagle Ranch In 2000, BBC was retained by East-West Partners to re- evaluate retail development plans at the Eagle Ranch project near Eagle, Colorado. BBC reviewed past studies, recent development trends in Eagle and suggested a new retailing strategy for this innovative new urbanist project. Woodland Park Faced with a proposed highway bypass of the community's historic downtown, the Town of Woodland Park sought BBC's help in evaluating the impact of highway rerouting on the community's retail core. BBC completed a market strategy study and has recently embarked on a second phase feasibility analysis to help relocate certain land uses that stand as an impediment to future development. Salt Lake City In 2000, BBC assisted Salt Lake City in negotiating with an outlet mall developer seeking financial incentives for a I million square foot retail project. BBC determined how much of the new mall's sales would likely be cannibalized from existing Salt Lake merchants and how much would lead to new tax revenue. This analysis bounded the incen- tive package considered by the City Topeka Retail Study Despite a significant population and earnings base, the East Topeka neighborhood in Topeka, Kansas has seen its one retail center decline in recent years. Working with the City of Topeka and two neighborhood associations, BBC is currently preparing an analysis of the competitive posi- tion of the East Topeka Neighborhood that will be used as part of a larger neighborhood revitalization plan. l(??I?...7?L,.lliV...I? G 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209.3827 ? 303.321.2547 tax 303.399.0448 l?lJ1VSULTIN www.bbcresearch.com ? bbc@bbcresearch.com Fiscal Impact Analysis BBC has conducted numerous fiscal impact analyses for both public and private sector clients. The studies evaluate the costs and revenues generated by proposed developments and estimate the project's net impact on the finances of cities, counties or other local governments. These studies have included: 00- Project-specific studies for developers to accompany project submittals, 00, Comprehensive models for local governments allowing staff to analyze the impacts of a wide range of projects; 00- In-depth analyses of the financing structures of local governments, with recommendations for optimizing its equity or ability to pay for services; and 01- Impact fess Teton Springs For a proposed golf course resort development in Teton County, Idaho, BBC prepared a detailed assessment of the pro- ject's likely impacts on County finances. Through an analysis of the County budget, BBC estimated the likely costs and rev- enues that would be generated by the development. To ensure the accuracy of findings, BBC then supplemented the budget analysis with in-depth interviews of County staff. The resulting fiscal impacts reflected current County service levels as described in the budget, and any service delivery variations noted by staff. Adams County In Adams County, Colorado, BBC worked closely with County staff to develop a model that assesses the impacts of various types of growth on County finances. The model allows staff to test the effects of various development scenarios, including incorporation of proposed development areas and shifts in the amount and type of development proposed. BBC also assisted the County in analyzing a number of proposals for mitigating negative impacts, including imposition of a sales tax, establish- ment of a Law Enforcement Authority in the unincorporated County or a requirement that special districts provide certain public services. Mission Viejo Corporation For the developer of Highlands Ranch, a master planned com- munity southwest of Denver, BBC prepared a comprehensive financial feasibility study evaluating the impacts of incorporat- ing the community within Douglas County, Colorado. Additionally, we detailed the effect of the potential incorpora- tion on the Douglas County budget. 4 y ha' Various Resort Communities In over a dozen resort-oriented communities, BBC has designed fiscal impact models demonstrating the likely effects of proposed developments. As part of this work, BBC generally prepares detailed fiscal impact assessments including evaluations of future service and financing needs. At times, these studies also include economic analyses estimating the impacts of devel- opment on the larger community. Town of Windsor BBC prepared a comprehensive analysis of Town costs and rev- enues to identify the degree to which various types of development paid for themselves. As pan of this analysis, the Town's taxes and fees were compared to those of surrounding communities to evaluate the relative tax burden on Town resi- dents and businesses. After performing this analysis, various changes to the Town's financial structure were analyzed to assess their potential impacts. Chandler, Arizona For the City of Chandler, one of the fastest growing communi- ties in the United States, BBC analyzed all permitting and regulatory charges to ensure full cost recovery fees. BBC also designed a comprehensive impact fee system, which has gener- ated over $30 million a year for city infrastructure expansions. Impact Fees For communities that want to recover the capital costs of growth, BBC has developed impact fee systems that require new development to pay for the infrastructure it will require. Impact fee studies include an assessment of current service stan- dards and an evaluation of the requirements that growth will place on existing infrastructure. Recent impact fee studies have been conducted in Salt Lake City, Utah and Chandler and Fountain Hills, Arizona. RESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www.bbcresearch.com ? bbc@bbcrmarch.com Downtown and Neighborhood Strategy Development Numerous communities have taken advantage of BBC's unique combination of market analysis skills, public sector experience and real estate expertise to develop strategic plans for their downtowns or selected neighborhoods. By combining analytical evaluations of the competitive advantages of certain areas with a commitment to public input, client communities have developed plans that are both exciting and feasible. Original Aurora BBC and its sub-consultants identified the most promis- ing concepts and sites for commercial redevelopment in Original Aurora and policies and strategies that the City can pursue to stimulate redevelopment. The project team assembled background data about area residents, existing retailers and nearby competition. The team then identi- fied several types of development that would fill market voids and/or build on community strengths. Team mem- bets also performed market testing of these retail, commercial and residential development concepts. Breckenridge BBC performed a strategic analysis of the Town of Breckenridge's downtown core that included market and transportation elements. Working closely with a trans- portation planning firm, BBC evaluated Breckenridge's current commercial environment, assessed retail trends and examined the likely impacts of a new gondola on retail development and circulation in the Town. Town of Avon The Town of Avon has always lacked a "downtown," but the community has a unusual opportunity to reposition an older core area with street modifications, transit con- nections and housing. BBC provided economic impact analyses, retail projections and market research support for a plan that was ultimately endorsed by town council. old ???, Crossroads Redevelopment In recent years, Boulder's Crossroads Mall has found itself squeezed by retail centers in newly developed areas around Boulder and facing a challenging] future. BBC was retained by the urban renewal district to model alternative futures and support an extensive public planning process. Lowry Redevelopment For the Lowry Economic Recovery Project, BBC provided technical support regarding economic and market support for alternative reuse options for Lowry Air Force Base in Denver. In addition, BBC participated in the formulation of all reuse plan alternatives, and analyzed their potential economic and fiscal impacts. Aspen Meadows BBC was retained by the Town of Aspen and a consor- tium of not-for-profits to develop a strategic and financial plan for long-term use of the Aspen Meadows property, home of the Aspen Institute. BBC's work also included a financial feasibility study of the hotel and conference cen- ter business. RESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING w,vw hhrraParrh rnm • hhr(@DhhrrPcParrh rnm 4 Urban Renewal - Cost Benefit Analyses Urban renewal practices vary by state, but in most instances urban renewal powers offer authorities considerable leverage in stimulating change and redevelopment in local communities. BBC's studies often form the basis for tax increment financing (TIF) or other types of targeted funding. Denver Urban Renewal Authority For the Denver Urban Renewal Authority, BBC devel- oped a (TIF) forecasting model and prepared projections of property and sales tax increments associated with rede- velopment of Broadway Market Place; also conducted a retail market and financial feasibility study and authored an opinion letter for private offering of tax increment- supported bonds. Similar work has been done for the Elitch Garden's and the Adam's Mark projects. BID/DDA/Title 32 Formation Studies On many occasions, BBC has evaluated the feasibility of forming and employing various different forms of dis- tricts or authorities to solve local problems. The firm has helped structure downtown development authorities, metro districts, resort associations and less formal inter- governmental agreements. Assignments have ranged from a feasibility study for the formation of a new water dis- trict (Santa Fe, NM) to designing a value recapture district for a power line burial project (Greenwood Village). Boulder Urban Renewal Authority Faced with new competition from the Flat Irons Mall, the Boulder Urban Renewal Authority retained BBC to develop a tax increment forecasting model and provide projections of urban renewal area sales performance under various redevelopment scenarios. This was the first step in a major redevelopment effort with the City and the Crossroads Mall. Cherry Creek North BID For one of the most successful business improvement dis- tricts in the State of Colorado, BBC completed a study of local market trends and then led a Board retreat looking for innovative ways to face new retail competition as well as secure funding for public improvements such as events and parking. Estes Park BBC advised the Estes Park Urban Renewal Authority on the feasibility of a new downtown convention center. BBC's analysis addressed market issues, program needs, tax financing feasibility and proposed the town's current project - a joint venture with the Holiday Inn. Jackson Hole Assisted the Jackson Hole Resort in developing a commu- nity management association to provide a common voice for the village's retail and commercial community. BBC projected net tax benefits from village redevelopment that could be used to support infrastructure investment and management association costs. 00© - RESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 _ONSULTING www.bbcresearch.com ? bbc@bbcresearch.com r MARK KIEFFER, AICP :: SENIOR ASSOCIATE J mkieffer@norrisdullea.com NORAQ115 DIULLEA 710 West Colfax Avenue Denver, Colorado 80204 T: 303.892.1166 F:303.892.1186 www.norrisdullea.corn PROFESSIONAL PROFILE Mark Kieffer brings 20 years of experience working in community development throughout Colorado. Throughout these years, Mark has developed a successful reputation by working closely with builders in order to meet the objectives of both the community as well as the development industry. Before joining Norris Dullea, Mark had served as planning director for two of the fastest growing communities in the state. His development expertise includes a broad range of projects from new town development to historic preservation. Having authored several land use ordinances, design standards, and master plans, he has developed a comprehensive understanding of how the entitlement process in each jurisdiction operates. In addition to his work in the planning field, Mark's training and experience in mediation skills has provided hart the opportunity to facilitate several multi-party disputes, including issues of state and federal concern. He has been instrumental in developing consensus within large and diverse groups in the development of public policy. His clear and concise presentation skills have proven to be an asset in the explanation of complex information to both small and large audiences. Marks background also includes Urban Design, Project Management, Historic Preservation, Downtown Revitalization, Large Scale Lanai Development, and State and Federal Permitting Processes. PROFESSIONAL AFFILIATIONS American Institute of Certified Planners American Planning Association Urban Land Institute, Associate Member Colorado Real Estate Roundtable Denver Mediation, Volunteer Member Colorado Mediation Concepts, Advisory Board Urban Design Forum, former Executive Board member Denver Community Leadership Forum Certificate in Mediation and Group Facilitation (CDR) PROFESSIONAL EXPERIENCE Norris Dullea, Denver, CO, 2002 - Present Parkhill-Ivins, P.C., Director of Planning and Urban Design, 1998 - 2002 The City of Black Hawk, Planning Director, 1993 -1998 The Town of Parker, Planning Director, 1983 -1993 Douglas County, Senior Long Range Planner, 1980 -1983 EDUCATION Masters of Architecture in Urban Design, University of Colorado at Denver, 1987 Bachelor of Arts in Urban Planning, University of Illinois, 1980 STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON 1 NOTICE IS HEREBY GIVEN THAT A SPECIAL WORK SESSION OF THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, WILL BE HELD JANUARY 12, 2004, AT 10:30 AM TO BE HELD AT THE AVON MUNICIPAL BUILDING LOCATED AT 400 BENCHMARK ROAD, AVON, COLORADO FOR THE PURPOSE OF DISCUSSING AND CONSIDERING THE FOLLOWING: 10:30 AM-11:00 AM 1) Village at Avon Municipal Service Invoice (John Dunn) Staff report with respect to a revised municipal service invoice 11:00 PM-12:00 PM 2) BBC Research & Consulting (Ford Frick) Review of economic development considerations -12:00-1'M=12:1-5 PM _ _3) - -Couna--l-Staff-Updates = - - -- a. Traffic (Councilor P. Buckley) Consent Agenda Questions AND SUCH OTHER BUSINESS AS MAY COME BEFORE THE COUNCIL. THIS MEETING IS OPEN TO THE PUBLIC. TOWN OF AVON, COLORADO BY: Patty McKenny, Town Clerk Estimated times are shown for informational purposes only, subject to change without notice. POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON JANUARY 9, 2004: ? Avon Municipal Building, Main Lobby ? Alpine Bank, Main Lobby ? Avon Recreation Center, Main Lobby ? City Market, Main Lobby Town Clerk\Council\Agendas\2003\Avon Council Meeting. 04.01.12 MEMORANDUM FROM: TOWN ATTORNEY TO: TOWN COUNCIL SUBJECT: MUNICIPAL SERVICES INVOICE DATE: January 13, 2004 With this memorandum is a copy of a letter which has been sent to Darlene Sisneros, attorney for Traer Creek Metropolitan District. With that letter is a revised municipal services invoice for the year 2004. The invoice has been revised to reflect the actual cost of police services, based upon the actual cost incurred in 2003. The calculation of the cost also accompanies this memorandum. The letter should be self-explanatory. We are throwing out the formula contained in the Annexation and Development Agreement (7.6 mills times assessed valuation) and billing Traer Creek for actual cost. By the terms of the Annexation and Development Agreement for The Village, payment of this invoice is due in twelve installments. Billing for the January 1 installment, based upon the revised calculation, was delivered to Traer Creek last week. If you have any questions of me regarding this matter, I request that you adjourn into executive session. jwd@dunncausey.com January 8, 2004 Darlene Sisneros, Esq. McGeady Sisneros, P.C. 1675 Broadway, Suite 2100 Denver CO 80202 Re: Municipal Services Invoice Dear Darlene: Enclosed with this letter is a revised Municipal Services Invoice, including a corrected estimate of the cost of police services for the year 2004. This revised invoice is, of course, sent to you in compliance with Section 4.10 of the Annexation and Development Agreement dated October 13, 1998, as amended by the First Amendment to Development Agreement dated November 13, 2001 ("the Annexation Agreement"). As will be apparent, the police services portion of the invoice has been corrected to reflect the Town's estimate of the actual cost of services in 2004, based upon the actual cost of those services in 2003. As will also be apparent, it has not been prepared in accordance with the formula contained in Section 4.10(a)(iv) of the Annexation Agreement. As you know, that formula calls for the Town to multiply 7.6 mills by the assessed valuation of the property comprising The Village. Representatives of Traer Creek have been aware for some time now that the formula contained in Section 4.10(a)(iv), is in error and causes an estimate that is very significantly less than the actual cost of police services being provided to The Village. Thus, in 2003, the initial estimate for the cost of police services to The Village, calculated according to the formula, was only $150, whereas the actual cost to the Town of providing police services was $170,657.91. It should be apparent that continued use of the formula will place an unfair burden on present taxpayers in the Town. It appears that, in 1998, EMD Limited Liability Company aggressively overestimated the pace of development that would occur within The Village. For example, according to the projections of EMD's consultants in 1998, the formula now contained in the Annexation Agreement would have generated in excess of $200,000 for police services in 2004, based on an assessed valuation of $39,255,000. Further, through mutual error, the selection of the formula failed to recognize that all of the residential development through at least 2004 would be affordable, tax-exempt housing. Finally, the plan of development has materially changed from mixed residential/commercial development adjacent to the existing Town core to commercial development adjacent to the I-70 Interchange. As one of the scriveners of the Annexation Agreement, there is no doubt in my mind that the intent of the Annexation Agreement was that, in consideration of Traer Creek's receipt of 100% of excise tax revenues, the Town would be compensated for the actual cost of municipal services. That intent is reflected in Recital E of the Agreement, which speaks to "the equitable sharing of tax revenues and costs relating to the Project." Provision of police services is a matter of the public health and safety and of paramount importance to the Town and, I am sure, to Traer Creek. It is therefore imperative that Traer Creek, as a matter of good faith and fair dealing, promptly agree to any necessary amendment to the Agreement to cause its language to comport with its intent. Further, such amendment, relating to the public safety, cannot be part of the negotiation of other issues between the Town and the developer. I look forward to your response on behalf of the District and the opening of negotiations. Pending reaching agreement on an amendment, it is the expectation of the Town that Traer Creek will promptly pay monthly installments of the Municipal Services Invoice including the revised estimate of the cost of police services. Also, we will shortly be providing you with the reconciled cost of municipal services for 2003, based upon actual cost. As appears from the enclosed Calculation of Police Services, The Village at Avon, 2003 Estimate dated January 7, 2004, we currently expect that an additional $170,657.91 will be due at that time. Yours very truly, JWD:ipse cc. Mr. Brooks Mr. Wright Mr. Murray Traer Creek LLC DUNN & CAUSEY, LLC John W. Dunn TOWN OF AVON REVISED MUNICIPAL SERVICES ESTIMATE FOR THE YEAR 2004 January 5, 2004 Roads & Streets - $271,946.65 Per attached worksheet Transportation Services -- $0.00 Police Protection - $279,705.19 Per attached worksheet Municipal Surcharge - $37,342.55 $551,651.84 X 7.5% _ $41,373.89 Capital Equipment - $10,268.38 Per attached worksheet Town of Avon Property Tax Revenue from the Village - $52,684.30 8.956 mills X $5,882,570 = $52,684,296.92 divided by 1,000 = $52,684.30 Total Charges -- $599,262.77 Total Property Tax Revenue -- (52,684.30) Revised Municipal Services Estimate for 2004 $546,578.47 Revised Calculation of Roads & Streets Service The Village (at Avon) 2004 January 5, 2004 Town of Avon Street Inventory 2002 HUTF Report Total Lane Miles Avon Street System Per 2002 HUTF Report 39.37 Lane Miles From 2002 State Highway Finance Report Section III. Disbursements for Road and Street Purposes A.2. Maintenance $ 760,811 A.3.a. Traffic control operations 28,819 A.3.b. Snow and ice removal 254,791 A.4 General Administration & Miscellaneous 39,428 Total Outlay per Report $1,083,849 Average Cost Per Lane Mile Per Day: $1,083,849/39.37 Miles/365 Days = $ 75.42 Per Lane Mile Per Day Village Total Lane Miles - January 1, 2004 - December 31, 2004 365 Days Chapel Place Extension 0.22 Lane Miles East Beaver Creek Blvd. Extension 2.02 Lane Miles Yoder Ave. 1.11 Lane Miles Fawcett Road 0.54 Lane Miles Post Blvd. (Highway 6 to I-70) 3.28 Lane Miles Swift Gulch Road (PW - Buffalo Ridge) 1.52 Lane Miles Nottingham Ranch Road (Post Blvd. - Cul-de-Sac) 0.70 Lane Miles Total 9.39 Lane Miles Village Projected Additions September 15, 2004 - December 31, 2004 107 Days Swift Gulch Road (Buffalo Ridge - Post Blvd.) 1.26 Lane Miles Post Blvd. (I-70 - Swift Gulch Road) 0.28 Lane Miles Total Addition September 15, 2003 1.54 Lane Miles Projected Maintenance Cost: 9.39 Lane Miles x 365 Days x $75.42/Lane Mile/Day = $ 259,518.94 1.54 Lane Miles x 107 Days x $75.42/Lane Mile/Day = $ 12,427.71 Total Projected Maintenance Cost $ 271,946.65 1 Street & Road - Rolling Stock Capital Expenses Total Lane Miles Avon Street System Per 2002 HUTF Report 39.37 Lane Miles Village Total Lane Miles - December 31, 2003 Total Lane Miles Avon Street System 8.69 Lane Miles 48.06 Lane Miles Village Pro-Rata Share Capital Costs 8.69/48.06 x 100 =18.08% Actual 2004 Lease Purchase Payment - Plow Truck $ 21,073.84 2004 Lease Purchase Payment - Bobcat 6,642.27 2004 Lease Purchase Payment - Street Sweeper 29,078.04 Total Lease Purchase Payments $ 56,794.15 Multiplied by Pro-rata Share of Lane Miles as of 12/31/03 X 18.08 % Village Share of Capital Expense $ 10,268.38 Estimated Streets & Roads Service Cost - 2004 Maintenance & Snow Removal $ 271,946.65 Capital Equipment $ 10,268.38 Total Estimated Reimbursable Expenses $ 282,215.03 2 Calculation of Police Services The Village at Avon 2004 Revised January 5, 2004 Town of Avon Statistics - 2003 Estimated Projected Cost of Police Services - 2003 $ 1,621,256 Total Commercial Square Feet - 2003 1,397,809 Total Residential Dwelling Units - 2003 3,532 Total Weighted Average Lane Miles 2003 44.94 Per Commercial Square Foot Cost - 2003 $ 1.16 Per Residential Dwelling Unit Cost - 2003 $ 459.02 Per Lane Mile Cost - 2003 $ 36,076.04 Calculation of Police Services - 2004 Estimate Commercial Factor Estimated Commercial Square Feet Village 307,809 Per Commercial Square Foot Cost x $ 1.16 $ 357,058.44 Factor x 33.33% Total Commercial Cost $ 119,007.58 Residential Factor Estimated Residential Dwelling Units Village 244 Per Residential Dwelling Unit Cost x $ 459.02 $ 112,000.88 Factor x 33.33% Total Residential Cost $ 37,329.89 Lane Cost Factor Estimated Weighted Avg. Lane Miles Village 10.26 Per Lane Mile Cost x $ 36,076.04 $ 370,140.17 Factor x 33.33% Total Lane Mile Cost $ 123,367.72 Total Estimated Cost Police Services - 2004 $ 279,705.19 Payment for Capital Expenses Pursuant to Section 410(a)(vi)(A) of the Annexation and Development Agreement The following items of equipment (rolling stock) are required to perform snow removal and roadway maintenance within the Village beginning in 2003. International Plow Truck $125,629 Bobcat Toolcat 39,597 TYMCO Street Sweeper 173,345 Total Estimated Cost 35 571 Village Total Lane Miles as of December 31, 2003 is 8.69 Lane Miles Total Lane Miles Avon Street System as of December 31, 2003 is 48.06 Lane Miles Village Pro-Rata Share of Capital Costs 8.69/48.06 x 100 = 18.08% Pursuant to the Annexation and Development Agreement, the annual required payment is based on the pro-rata share of lane miles within the Village and maintained by the Town. The Town plans to finance the purchase of this equipment in 2003 through a master lease-purchase agreement with a term of 7 annual payments. The first annual payment of $56,794.15 is due in 2004. Based upon the above actual costs, using an amortized cost over 7 years at 4.15%, and a pro-rata share of lane miles within the Village of 18.08%, the initial annual cost in 2004 for the above items is $10,268.38, as follows: Actual 2004 Lease Purchase Payment - Plow Truck $ 21,073.84 2004 Lease Purchase Payment - Bobcat 6,642.27 2004 Lease Purchase Payment - Street Sweeper 29,078.04 Total Lease Purchase Payments 56,794.15 Multiplied by Pro-rata Share of Lane Miles as of 12/31/03 X 18.08 % Village Share of Capital Expense $10,268.38 1/2/04 FINANCIAL MATTERS January 13, 2004 1. YTD Building Revenue Report Actual vs Budget - November 2003 2. Detail-Real Estate Transfer Taxes - November 2003 3. Accomodations Tax Worksheet Actual vs Budget - October 2003 4. Sales Tax Worksheet Actual vs Budget - October 2003 n v o o -+ r In un r Ln LO OI?MN Ln 00 M.A M M H W . ? O r I'D[- N (3-? d1 1.n Q? Cl mNNm In mNO 01 61 W C7 W OmMQI tnmOr N N Q' a M H M r C N O .-i lD ?D Q, U CD co C -1 ?o in M m N a z 61 ,--1 in N am 'r H w Ln in H D11D 61 v? MMMM O O <a >Q,' cr NNrn NMr ID M M a' G0 N I I r-I M N I H M O W OmMH LnNOr co m N r H M N d' r 0 11 M M V' n Q rNrnrn aIMOM N N M r lD r H Ln v, r-4 m rn OW CD w NIT M M ' E-+ "J N z lD N ?' N 'r k?D N N Lo In O W OHHM rnOMC') lD iD N > H H N M 7' <T <r W W n >+ rx 0 N ? U1 0000 0000 O O n w O O O O 0 0 0 0 O O oa C H > O 0.', H N WW N 0+ U ?n W . 0.; F Z M O o W N W N za n p c cn nw rn o .n H C) W iD \D >U7 F 00 0MM r(n Ln - v v < o a • F H H m m ? 0 U-) rn rn WQ', O W In r OM NCCH v' VT OF N U M MN 01 un m Co U) N W Ln 0.'i lD r C' lD H N 01 C3 W H H .--I OJ Fz F4 a H w a' 1-J a ?wl 0 U F O O O O 0 0 0 0 O O U W O o 0 0 0 0 0 0 O O r? (D<rO) ?o?o H S4 NLnHO NONLn n N 0.l H to N M W O M U) C! N HOI .-iO cr lD m m H M 1-1 Ln lD M N H w lp 'J H H N M V? d• N .U C. ro o cn r-1 I W w Ga G I U] Ul "$ co U7 W 1 U)U]HH HWU E, E, UI>GJH C I H H [1,' W W "r' N Ww o w a 44 0 a W W z H M W l a4 Q H v O W ?i z F H aO Q; . '- 2 Z xH r) Q H Cu I HH'z,Cn U>z z ° m H w a 1 Z z O H W 44 r h f4 F-4 1-1 W W "4 C4 a4 U) C) E- U z z a ° z z a V H 0 W w OF H CD F U !x `z H H z co D U 1 n '- cn r-i N M a a a 00 W cn 0 Ooo C (D o0< r? U a z U N N (,,I H N N N F F H U W p u NNNO <T-V<,0 O O 0 < U) C:1 Q, u) uo In H u-) un un H F F Town of Avon Real Estate Transfer Tax Calendar Year 20,03 Purchaser Name Property Amount Received October Balance Forward $ 1,847,415.89 Holiday Christie Lodge Timeshare 4.98 Holiday Christie Lodge Timeshare 24.50 Title Comp Rockies Christie Lodge Timeshare 150.00 Title Comp Rockies Christie Lodge Timeshare 140.00 Title Comp Rockies Christie Lodge Timeshare 160.00 Title Comp Rockies Christie Lodge Timeshare 170.00 Timeshare Transfer Falcon Pointe Timeshare 2.00 Title Comp Rockies Falcon Pointe Timeshare 100.00 Title Comp Rockies Lakeside Terrace 399.90 Title Comp Rockies Lakeside Terrace 264.90 Title Comp Rockies Lakeside Terrace 244.90 Title Comp Rockies Lakeside Terrace 849.80 Title Comp Rockies Mtn/ Vista # 0343 7,318.40 Title Comp Rockies Mtn. Vista # 03-44 8,298.00 Title Comp Rockies Mtn. Vista # 03-41 7,378.30 Title Comp Rockies Mtn. Vista # 03-42 10,537.40 Title Comp Rockies Mtn. Vista # 1320 379.90 Demasi Ralph Grandview Condo 206 570.02 Neubauer Kurt Avon Lake Villas E-1 1,000.00 Denzler Fay & Edward Avon Lake Villas E-4 4,520.00 Holquin Francisco Benchmark Condo C-19 1,560.00 Morgan Janice Beaver Bench Condo B-21 580.00 Hood Dorothy & Reed Elizabeth Sonnen Halde Condo 17-A 460.00 Langan Audrey Grandview Condo 106 570.00 Cohne Allon L La Vie Bonne Townhouses II H 3,800.00 Benson Ryan & Kimberly Sunridge @ Avon D-201 2,600.00 Rae Toby & Lepovitz Val Sunridge @ Avon D-201 Timmerman Matthew Sunridge @ Avon C-204 420.00 Ramsey John & Jerrilyn - Ney Chyrise & Kenneth Buck Creek Condo A-101 6,600.00 Vogeler Dawn Avon Crossing #1201 1,160.00 Neil Douglas & Rossana Canyon Run D-104 8,940.00 Borkovec Mark & Pamela Canyon Run D-104 Peak Gerald Canyon Run H-203 2,940.00 Swain Elizabeth Chapel Square B BR-309 4,940.00 Hutchinson R. Lars Raven Ridge Townhomes 3,400.00 Davis William & Running Andrea Coyote Creek Townhome B-82 3,520.00 Kohlhofer Kim & Stefan Sunflower Townhome 4 6,300.00 Delpiere Mark David Ridgeline Condo B-2 1,650.00 Strong Charles & Kathleen 5113 A Longsun Lane 11,980.00 Morten Properties LLC 5113 Longsun Lane 13,180.00 Schroeder Robert Lot 65A 1/2 65C Blk 1( 2345 Fox Lane 10,810.00 Hesse Matthew Lot 77W Blk 4 Wildridge 15,400.00 Town of Avon Real Estate Transfer Tax Calendar Year 2003 Purchaser Name Property Amount Received Ferguson David & Kathy Lot 58 Blk 4 Wildridge 5,500.00 Total November Revenue Total YTD Revenue Total 2003 Budget Variance to Budget +/- F-2 148,823.00 1,996,238.89 2,100,000.00 $ (103,761.11) ui TLJJ i ?p U) G1 Z O Q LL (D oZo? 0 O C G 1.r O U Q Q co (D O ? O N L N U O O o w a co O U N 3 a .r- (0 CD > > (a Cl) :3 O U O a N N M O O ? o ? N D] N O O N O O N O U O O O U o N f9 U a m 0 m m r \o \ 0 0 0 0 0 0 0 0 0 0 0 0 O m m to D N O (n l!) O C N n h N n n O O C N r (D 6 6 00 M O O m M O a 00 c0 m h (D <t (D M M to O N ??}?} to N - u') (D 00 . m M o m ('! (D M M r O v v v m v v 69 O N M m r (C N M Ono W MLO1O U°OnO 0)0 04 O M It n C (17 <t n LQ O M (D N ?t (n m (n O O n r r r r r Cl) It 69 "4: M ? M (A ti r O 00 (D <t M (°n) (Nn (D m O N O m v W i? m (D (O to (D N L <t O N m«) m 'IT M (D r m N - -- - r Cl) am69 O O QM1, N n (A N r N V0, O M? M N O m 00 t m ONO M (n M M to M <f O m L M a M N. 00 N r m r0 M m c) 69 n (MD i? O 7 O? N 000 N M U? M n N N m O n m m '0 N ?2 M ?2 a' M (D n (!') O m m d r• O (n ocO O mCl? M G M- O- N m- Cl) n n m N 69 N O N_ 1- n m? 0 O ON M N (0 (D (f1 et M M (f') tD N O Oi ('M O C7i M N N NN O O O N en- 01 O 69 ? O N (Iq N (Lq 00 (D 0 . ? r- 0 ( N (N O (0 w _O W O O m 0 (D r m _ 'd: M N 0: 0 N (D Q N r (O O r Cl) V r r 69 N N MC? (0? O (D c0') Mr N o(O (i (mD M N W O U) n (ND (n M M t- O (17 n (D c0 c0 N M 00 (m') V 1f) ?2 u) r N N r w O 69 e O m CO M W N Cl) (D co M N 69 C. O O O O Lo m N 64 d' r O n N 69 co C9 00 0 N N N N r c bq O n N n n (P) M N 64 N 'n a a :3 > L j 2 , 0 0 c 0 => m a U> U I- n U- Q n I Q U) 0 Z 0 7T M ? O u O ffI ? ? i ? I I v r. N O . O O I ?'MC't V LI O CA o V I I o 0 0? i 00 ? - -4 -- 6 ad C? 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C C 0 0 0 C 0 O ON 00 t- ?c vi I?t m N r-. + 69 69 69 bq 609 603 69 603 69 603 a w •? W zYYcl)Q? O I.f Q LL 0 O Z r O W 'Q v+ w V Q 0 0 0 0 0 0 0 e o e a e o 0 0 M N ll m w (D U') o 0 1-- 0 0 O m (V M N (D M M M (D O M O O O C O N 00 N r` N N tl) N (h O O N L r i i U U O O Q o ? tf) r 0 to N m N mot' M ?t M (f) r M "It r M (f) O i 0 ~ O M ti to O (D i9 O (D ([) O (O (1') N co N M O O U ti N M (O O (f) (f) M M ti m C O M V N O r (D ? Q N t() N I CO > M 69 O U O Q N 0) M m O O O N m D (O M O (N m COO N (N I M M O CV M 00 M N 00 to i r- C) LO M (0 M O (O 0 01 O M N O M 0) r m (O M It N O ? V d' M N M M M M M (YD m m d N O (f1 P- N O r h N N O O O r r- (O (f) (17 r M (0 In (0 M LO O r` t? O O 0) O ((7 (n N t- (O O (D N M (f) r- 00 N O O N_ V' (D (O O M (Cj ,t C`7 06 t? M (D (V (C7 00 -.17 0) co (O r- 00 V 00 r` N O O O M co d' N N M M M (M OM (M (O 613, (•7 r (7 (D M (D O1 M r (0 Y) C \i (D C 6% O O N N N LO d? U9, N ((7 a O CD 64 (f) O O 00 0 V 69 m t` 00 h (f1 00 (D V Udl N n 00 N V CO m Lf) t` M M 00 d (r0 00 te?r}t 00 M (n O 00 (n 04 M M N ti 00 -It (Lo ONO 0 OOD r t? V O M O O O li f• O rt 00 O O ONO 000 001 m m 0 M O N N ct' V V N N Cl) Cl) M M M M (O 69 O ? (M M t, r (D O CO O tC) .. yy)? r N ( 06 N 00 r- M m m ( O 00 N M ct O M (D M O N (D O O 00 co d' h (`') d' (D co i O O O O -,t m M N (O M M N -,t (() M M CO 't 't M CO M i 69 00 0) 1- M M 0 N 0 0 0 i o M to m ct M 00 (!? (011 m 0 (:) ' M t` m 00 th 0 (D O I U N m (n 00 0 co ti V O 0) f I O - O f` N O O OO m <t v r` I O O 0 0) rO rl- O 00 (f) O (O O 0 I V O Lo 0 In m M co 0 O N N N M co V M N M V' V M M M Co U Q to 0 O ? O (0 O M ( D M ( N C, M cc (D O ? ? t (( q m N ) (t' rn rn c? rn OZ v_ r` rn 1 M a Q0i m It o ((0 m m ( MO c0 m N d M M It M N M M M M N co t< ER O (D N O M M (0 00 0 n ct O (q r` m q h m M 0 (\ N M N (0 O W LO M n N O1 0 0 0 O M O d' O U) O (n O O C m 0 00 O O 0) rte- O M co (011 (f') C m h ti M _ T co n (D M O M w m M ? M N M co M co M co (l: 69 6% ? N N E C 2 'a m c> m 0 a (D > o c? H C U (-)) LL 2 Q U) 0 ° z 0 M O O N N O O O o O O i. y ? O O W _ 00 O O O O O O O O t O O O O O O O O ? O O O O O O O O O O O O O O O O O (n O (n O (n O (n ?t M M N N - - 69 69 641 6013 6+9 (Al 6'9 69 i STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON NOTICE IS HEREBY GIVEN THAT A WORK SESSION OF THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, WILL BE HELD JANUARY 13, 2004, AT 2:00 PM TO BE HELD AT THE AVON MUNICIPAL BUILDING LOCATED AT 400 BENCHMARK ROAD, AVON, COLORADO FOR THE PURPOSE OF DISCUSSING AND CONSIDERING THE FOLLOWING: 2:00 PM - 2:30 PM 1) Council Committee Updates - Council members are assigned to several committees and update their progress. Water Leases (Councilor D. Buckley) Open Space Committee Update (Councilor Wolfe) Colorado 100 Session (Councilor Wolfe) 2:30 PM - 3:15 PM 2) Beaver Creek Resort Proposed Gondola Plan (John Garnsey) - Beaver Creek Resort, Inc. officials will discuss the proposed gondola & chairlifts plan that will take passengers from Avon & the base of Beaver Creek to the top of Beaver Creek. 3:15 PM - 3:45 PM 3) Lot 61 Development Proposal Review of Financial Analysis & PUD Development Plan & Development Agreement (Norm Wood, Tambi Katieb) - Staff will review the financial implication of Lot 61 development agreement located at 75 Benchmark Road 3:45 PM - 4:00 PM 4) Fly Vail Summer Program (Kent Myers) - A review of 2003 program, an update on 2004 program, and a request for funding. 4:00 PM - 5:20 PM 5) 4:00 PM - 4:20 PM 4:20 PM - 4:40 PM 4:40 PM - 5:00 PM 5:00 PM - 5:20 PM Comprehensive Plan Proposals (Ruth Borne) - Presentations from various selected firms regarding Avon's Comprehensive Plan "Request for Proposal" a. RNL Design b. EDAW c. OTAK d. Discussion 5:20 PM - 5:25 PM 6) Staff Updates - Consent Agenda Questions AND SUCH OTHER BUSINESS AS MAY COME BEFORE THE COUNCIL. THIS MEETING IS OPEN TO THE PUBLIC. TOWN OF AVON, COLORADO BY: Patty McKenny, Town Clerk Estimated times are shown for informational purposes only, subject to change without notice. POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON JANUARY 9, 2004: ? Avon Municipal Building, Main Lobby Alpine Bank, Main Lobby ? Avon Recreation Center, Main Lobby ? City Market, Main Lobby Town Clerk\Council\Agendas\2003\Avon Council Meeting. 04.01.13 VON C 0 L 0 R A 0 0 Tom ofA m P.O. Bcoc975 900 Bff d r ? Rmd Awn, Cobacb816X 970-798 Office of the Town Manager To: Honorable Mayor and Town Council Fr: Larry Brooks, Town Manager Dt: 1 /7/04 Re: Proposed Gondola Plan John Garnsey and team will present to the Council the most recent plan for a gondola/lift project that will transport people from the Confluence site to the top of Beaver Creek Ski area in the vicinity of chair 12. While several of us have reviewed the concept of the proposed project, we have not received a full presentation that might answer many questions about specific operations. We can expect a power point presentation they are currently using to explain the plan. In the interest of achieving the most thorough presentation, we have been sharing questions with John as we have heard them from you and the community in general. Memo To: Honorable Mayor and Town Council Thru: Larry Brooks, Town Manager From: Ruth Borne, Director -Community Development Tambi Katieb, AICP - Community Developmen Date January 6, 2004 Re: BBC Research & Consulting Economic Planning Proposal Summary On December 19th, 2003, staff received a letter from Ford Frick of BBC Research & Consulting in response to the Request for Proposals (RFP) to update the Town Comprehensive Plan. While not submitted as a response to the Comprehensive Plan request, Ford instead submitted a letter outlining an alternative approach to the process. Ford largely suggests that the economic element of the Comprehensive Plan be more thoroughly examined in a strategic approach and as a precursor to the development of policy goals and objectives associated with the Comprehensive Plan process. Staff previously recommended a similar approach at your 2003 budget retreat. A special work session is scheduled to discuss and consider the recommendations put forward by Ford on Monday, January 12, 2004. Town Manager Comments: L-e G , - Attachments: December 18th, 2003 letter from BBC Research & Consulting BBC Research & Consulting Economic Planning Proposal Page 1 of 1 January 12, 2004 RESEARCH & CONSULTING 3773 Cherry Creek North Drive Suite 850 Denver, Colorado 80209.3827 303.321.2547 fax 303.399.0448 www,bbcresearch.com bbc@bbcresearch.com December 18, 2003 Mr. Tambi Katieb Town Planner P.O. Box 975 400 Benchmark Road Avon, Colorado 81620 Re: Avon Comprehensive Plan Dear Mr. Katieb: RECLEN ED DEC 19 2003 Community Development This letter is in response to your Request for Proposals (RFP) for development of a comprehensive plan for the Town of Avon. As you will note shortly, this is not a full response to that request, or at least it is not a very responsive one. Frankly, I found the RFP frustrating and I have concerns about the practicality of the program it suggests. Instead of just walking away, I thought I would pass on these observations. I spoke with Larry Brooks and he encouraged me write this letter and suggested that I offer an alternative approach. Perhaps he was just being polite, but I have never known Larry to go out of way to be polite, so I will assume he was sincere. This letter is not intended to be arrogant or hypercritical, and I acknowledge that I do not have all the background about how the RFP came together. I also acknowledge that I may be plain wrong, but I know that some of the planning firms that have considered this RFP expressed some similar reservations and have chosen not to pursue this project. I was not at the pre-bid conference but Norris Dullea did attend and they have passed on some of their observations and share the concerns and recommendations expressed here. I have been involved with Avon for many years and I would like to see the community succeed. In that spirit, I offer the following comments. I will try to keep this short and to the point. Background I have been on the consulting side of the resort development business for 20 years and I have worked on many comprehensive plans. Typically our work involves economic impact analysis, feasibility assessment, land use planning or policy analysis. In Avon, I have worked on many projects, ranging from the initial feasibility study for the recreation center to the economic impact of the recent gondola proposal. I did the feasibility study of the Avon Town Center concept last year and completed the Wal-Mart/City Market sales tax impact study for the town in 2002. I have also done projects for other public and private interests in Eagle County, so I have a perspective on Avon from Page 2 outside of the town limits as well. In short, I think I have a good sense of the town's history, its economic evolution, current issues and general prospects. I also work in many other resort communities that share many of Avon's characteristics. The RFP My concerns with the RFP primarily fall in two areas. These are: ¦ The comprehensive plan integrated approach; and ¦ The emphasis on QOL indicators. I will address each in turn. Comprehensive Plan Approach The RFP calls for the development of a town comprehensive plan concurrent with the completion of various economic analyses. These efforts are quite different and require different approaches, different expertise and different forms of engagement with the community. Mixing these as suggested in the RFP will be awkward and inefficient. The town would be well served if they separated the two efforts and approached these in a serial process. Avon's most basic planning challenge lies in solidifying its future financial base and ensuring that the relatively small amount of development that remains is done in a manner that expands the town's prospects - not limits them. Beyond that broad challenge, the town faces more immediate issues involving the gondola prospect, the opportunity of a new downtown core, reformulation of the Avon Village agreement and eventual absorption of that development into the town, long standing traffic and transportation issues and revitalization of its existing commercial base. All of these challenges occur against in backdrop of competition with surrounding communities, a very limited amount of undeveloped property within the town (outside of Avon Village) and challenging market conditions in the broader resort economy. Avon needs to wrestle with these issues, which are largely economic, market and fiscal challenges, before it undertakes a comprehensive planning process. The citizenry needs analysis and options developed, digested and presented as a prelude to comprehensive planning. Analysis, assimilation and development of options is a role for town council in coordination with senior staff. The final debate over what option to choose obviously involves the community, but not in the same process or "bottoms-up" manner that comprehensive planning does. Before starting a comprehensive planning process, Avon would be well served to get data and options on the table, allow information to be digested and debated at a council level and then engage the community in an informed discussion of broad strategies and options. Currently, you have limited financial resources allocated to a very ambitious work program and you are engaging the community before you have actionable information. Completion of the comprehensive plan will require most of your budget; the collection of QOL data will absorb more Page 3 dollars, while the important task of developing an economic strategy is relegated to a lesser role. I think a restructuring of your approach would ensure that resources are efficiently used and that you make the best use of an extensive and expensive public process. Quality of Life Indicators The RFP is unequivocal in its support for the formulation and maintenance of quality of life indicators. I understand the appeal of this kind of system, but in my experience, the practical value of QOL indictors rarely justifies the expense. The problems are three fold: Data consistency. Some data are easily collected and very consistent from year to year, e.g. sales tax. Most data are not, particularly the soft indicators, such as social well being and environmental quality measures. Very few accurate and reliable data sources are consistently developed and published over time. This is particularly true in recent years as government at all levels has cut back staffing and services. Patience. Actionable data is trend data. Trends require at least three years of information. A QOL process provides very little value until trends are apparent, but by then costs and consistency problems are overwhelming. Data Interpretation. Data collection is relatively easy; interpretation is more difficult. It is very easy to underestimate the cost and difficulties of collecting, organizing and interpreting data, particularly more obscure indicators of community health. Turnover in staff often means reinvention of the process on a yearly basis. Many data sources begin to lose value. Institutional memory is surprisingly hard to maintain. In my experience, most communities simply drop these programs as they become too burdensome to justify. I realize that there are strong indicator programs around, including the Yampa Valley project and the Healthy Communities Southwest Colorado initiative, but these have private funding and involve multiple jurisdictions. As much as I find their output interesting, I still question the cost effectiveness of these multi-year efforts. With limited resources available, I suggest you evaluate this QOL program before you make a sizeable commitment. The best municipal resort data collection program that I am aware of is in Breckenridge although it is very financial and real estate oriented. I encourage you to investigate their experience as a starting point. An Alternative Approach If any of these arguments make sense to you and you are willing to consider a very different approach, Norris Dullea and BBC would welcome the opportunity to discuss this project further and develop a more thorough and detailed proposal. Mark Kieffer from Norris Dullea attended the prebid meeting and has helped me fashion this response. Background materials on our respective firms are attached to this letter. Page 4 Our recommendations for study modifications would obviously begin with reducing the QOL requirements and acknowledging that this study is a precursor to a comprehensive planning process not the plan itself. As stated previously, we think there is a pressing need for Avon to solidify its financial base, position itself in the area, and ensure that the relatively small amount of development opportunity that remains is done in a manner that expands, not limits, the town's prospects. Our suggested approach for undertaking this analysis more closely mirrors a traditional business planning model than a traditional comprehensive planning model, which entails a process of data gathering, analysis, option identification, debate and decision making. This process would encompass the following four key tasks: Task 1. Prepare a clear, concise documentation of current community conditions and trends, in essence a "state of the community" report. This would identify key trends, issues, opportunities and challenges. Benchmarking against similar communities, such as Basalt, Carbondale, Frisco or Truckee, California (outside of Tahoe), might also be valuable. We see this as a more actionable version of the QOL indicators, and producing as a baseline report necessary to begin policy debates with a common understanding of issues. ¦ Task 2. Develop an independent set of observations and conclusions regarding emerging opportunities and challenges for Council/Staff/Planning Commission's review. Facilitate one or more working sessions with the appropriate policy makers, staff and interested citizens. Task 3. Based on Council feedback, develop a concise portrayal of economic projections and outline policy options and implications for council's review and direction. Task 4. Complete a final report that builds on the "state or the town" report, documents the strategy assessment process and defines strategies and tactics for achieving community goals. This report will also serve as a basis for continuation of the comprehensive planning process. From our perspective, Avon is faced with a number of challenging issues and opportunities. Among these are: reform of the current Avon Village agreement; strategies for dealing with a Beaver Creek Gondola extension; strategies for revitalizing the town's retail community; and expansion of community services in a period of declining public revenues - all set against a backdrop of declining tourism, a soft housing market, growing area retail competition and a slow "down valley migration" of economic energy. Our suggested process is focused toward town council, senior town staff, planning commission and interested citizens who want to be engaged at a strategic level that is tightly focused on solutions. As products, we envision a series of working papers and town council work sessions where analyses are reviewed and discussed and council's position developed and refined as a final report. Page 5 I think by following a process similar to the one outlined above, the town will have conscientiously analyzed and addressed the fundamental planning issues facing the community; and thus the comprehensive plan process could become an opportunity to solicit citizen feedback and determine how these strategies translates into a physical plan. Our approach is a strategic planning methodology aimed at policy makers in preparation for a citizen driven comprehensive planning process, which eventually results in a physical and policy plan. Depending on final scope and details, this project could be completed considerably below the budgeted comprehensive planning process and it could be completed with 4-6 months. I hope these thoughts are of value and mostly I hope, however you proceed, that you get the best product possible. Please feel free to call if you would like to discuss this further. Sincerely, Ford C. Frick Managing Director Ford C. Frick 1978 to present ... Associate to Managing Director, BBC Research & Consulting ... expertise in public and private development planning, urban development economics, cost benefit analysis, and public finance related to growth issues ... specialization in tourism economics, marketing and resort community planning. Mr. Frick has served as an expert witness on regional economics, market trends and growth financing in District Court. He has addressed numerous professional groups, including the Annual Meeting of the American Planning Association, the National Park Service and the National Association of Business Economists. Frick is a member of the National Geographic Society Panel of Experts on Sustainable Tourism. Frick's views on economic issues in the Western United States have been quoted in Forbes, The New York Times, The Sporting News, The Wall Street Journal and The Journal of The Federal Reserve Community Redevelopment & Public Finance Analysis ¦ Recently assisted the Town of Whistler, British Columbia in the analysis and implementation of one of North America's most aggressive tourism development plans based on community sustainability principles. ¦ Assisted the Jackson Hole Resort in developing a community management association. BBC projected net tax benefits from Teton Village, Wyoming redevelopment that should be available to support infrastructure investment. ¦ Completed comprehensive retail analysis of the Aspen, Colorado downtown including comparative analyses with other resorts, retail attributions to sub-markets, feasibility analysis of retail development and projections of commercial opportunities. Similar downtown economic development projects in Breckenridge, Mountain Village, Avon and Carbondale, Colorado ¦ Working with a design and planning firm, helped conceptualize and write regional tourism development strategy plans, new funding mechanisms and chamber/association business strategies in North Lake Tahoe, California; Teton County, Wyoming; and Snowmass Village, Colorado. ¦ Advised Town of Estes Park on feasibility of new convention center; proposed a joint venture with existing hotel in place of convention center. ¦ Currently assisting the town of Black Hawk, Colorado in the development of a tourism master plan designed to broaden that communities appeal beyond its current reliance on limited stakes gaming. ¦ Assisted national architect team with feasibility study of a new arts and cultural district in downtown Denver. Ford C. Frick (continued) Tourism Development - Financial Feasibility and Market Assessments ¦ Retained by U.S. Fish and Wildlife Service to evaluate feasibility of wildlife sanctuary at the Rocky Mountain Arsenal; other studies have examined the economic impact of hunting, fishing, interpretive museums and watchable wildlife programs. • Analyzed the prospective economic costs and benefits of a proposed 13,000-seat arena in Stamford Connecticut for a private corporation with land ownership interests in nearby property. ¦ Engaged by the City of Indianapolis to determine the economic feasibility of a proposed nature center; prior study examined feasibility of proposed park renovations and aquatic center. ¦ For a multi-party client, assessed trends in the New England recreation market and documenting new business opportunities arising from these changes. ¦ Retained by a major New York-based investment firm to analyze prospective resort purchases (American Skiing Company). Services include market research, financial analysis, assessment of competitive environment and long-term business strategy development. Completed due diligence on seven resort real estate projects as part of a $150 million resort acquisition effort. ¦ For a tourism based region in Utah, conducted a feasibility and strategy plan for a major joint infrastructure investment and marketing initiative that would connect three communities by a gondola and summer trail system. ¦ Numerous projects in the Lake Tahoe area including economic impact studies on the both North and South Shores, strategic planning for reorganization of tourism promotion organizations; hotel feasibility study in Truckee and economic impact analysis for the town of Mammoth Lakes. ¦ Retained by the PGA Tour to review their investment and management options in a Florida real estate venture that includes the World Golf Hall of Fame. ¦ For the Town of Mammoth Lakes, California a multi-year, multi-faceted engagement assisting the community in negotiating agreements with Intrawest Corporation for the development of a new, 1400-unit village at the Mammoth Mountain Ski Area. Follow-on analysis looked at retail markets and prospects for retail development. ¦ Currently managing development and disposition strategy for owners of a 1,400-acre parcel near major Colorado resort town; includes strategic plan, market study and financial feasibility analysis. Education B.A., Political Science, Colorado College, 1973. Masters of Urban and Regional Planning, University of Colorado, 1977 BBC Research & Consulting Background BC Research & Consulting is one of the oldest privately- held economic and market research firms in the Rocky Mountain West. Founded in 1970, BBC provides economic, financial, statistical, market and policy research and advisory services to businesses and governmental interests nationwide. BBC's staff of professionals includes market analysts, economists, financial analysts, urban and land planners, policy analysts, management consultants and statisticians. Experience BBC's experience is concentrated in the following areas: ¦ Real estate development and planning ¦ Retail development ¦ Tourism, recreation and resort development ¦ Cultural arts and visitor attrac- tions research ¦ Market research services ¦ State and local governments ¦ Housing needs assessments and market studies ¦ Water, energy, mineral and related resource industries. Clients In our 31-year history, BBC has completed more than 4,000 studies for public and private sector clients across the country. Our work has taken us into all 50 states and sev- eral foreign countries. Our clients range from Fortune 500 corpora- tions to local special districts. Services As specialists in the collection, analy- sis and dissemination of information, BBC emphasizes real-world services to meet the changing needs of our clients. BBC's assistance takes many forms, including: ¦ Market analysis ¦ Financial feasibility studies ¦ Strategic planning ¦ Regional economic analysis ¦ Cost/benefit analysis ¦ Demographic analysis and forecasting ¦ Policy analysis ¦ Computer modeling ¦ Business valuation ¦ Master planning ¦ Litigation support Our Credentials BBC's work has been recognized with awards from a wide range of associations including the American Planning Association, the American Marketing Association and the Public Relations Society ' of America. In addition, our work is frequently recognized in the media, and our staff has been quoted in the Wall Street Journal, the New York Times, USA Today, Forbes Magazine and other publications. BBC principals frequently serve as expert witnesses in litigation matters. i RESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.3211547 fax 303.399.0448 CONSULTING www.bbcresearch.com ? bbc@bbcresearch.com Selected Clients BBC Research & Consulting has served well over 1,000 business and public entities over the past 30 years. Consulting assignments have been conducted in all of the 50 United States. A selected list of recent clients is shown below. Angel Fire Resort, New Mexico Arizona Department of Commerce Aspen, Colorado Aspen Skiing Company Aurora, Colorado Avon, Colorado Boulder, Colorado Boulder Urban Renewal Authority Breckenridge Ski Resort Breckenridge, Colorado Chandler, Arizona Cherry Creek Arts Festival, Denver Cheyenne, Wyoming Colorado Association of Ski Towns Colorado Department of Local Affairs Colorado Department of Transportation Colorado Division of Wildlife Colorado Historical Society Colorado Housing and Finance Authority Colorado Ski Country USA Colorado Springs, Colorado Colorado Symphony Orchestra, Denver Colorado Water Resources and Power Development Authority Colorado's Ocean Journey Crested Butte Mountain Resort Denver, Colorado Denver Art Museum Denver Baseball Commission Denver Center for the Performing Arts Denver Museum of Nature & Science Denver Regional Council of Governments Fairmark Development Flagstaff, Arizona Fort Collins, Colorado Heavenly Ski Resort, Lake Tahoe Historic Paramount Theater, Denver Idaho Housing and Finance Association Indianapolis Public Housing Authority Indiana Department of Commerce Intrawest USA Jackson Hole Mountain Resort Jackson, Wyoming Lakewood, Colorado Laramie, Wyoming Lowry Economic Recovery Project Mammoth Lakes, California Minnesota Historical Society Minnesota Housing Finance Authority Monarch Ski Area Mt. Bachelor Ski Area Park City, Utah Philip Morris Management Company Pocatello, Idaho Pueblo, Colorado Regional Transportation District (RTD) Rocky Mountain Mutual Housing Association Salt Lake City, Utah San Antonio Water System Safeway Stores, Inc. Silverthorne, Colorado Snowmass, Colorado Snowmass Resort Association Southern Ute Tribe Housing Authority Steamboat Ski Corporation Steamboat Springs, Colorado Summit County, Colorado Tahoe Regional Planning Agency, Nevada The Children's Museum of Denver The Colorado Rockies The Denver Foundation The Denver Nuggets The Trust for Public Land Truckee, Colorado U.S. Army Corps of Engineers U.S. Bureau of Reclamation U.S. National Park Service Vail, Colorado Vail Resorts Vestar Capital Partners Vilar Center for the Arts, Beaver Creek Western Governors Association, Denver White Mountain National Forest White River National Forest SEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www.bbcresearch.com ? bbc@bbcresearch.com Resort Community Revitalization strategies Although most western resorts are only a few decades old, they must continually respond to evolving market preferences, new competition and changing visitor demographics. BBC provides the market assessments, strategic planning and financial analyses necessary to develop effective revitalization plans and new business strategies. Mountain Village (Telluride) Working with urban design and planning firms, BBC assisted the town of Mountain Village in assessing its competitive strengths and weaknesses and revising its development codes to support a more realistic commer- cial development agenda. BBC's work focused on quantifying commercial and retail market prospects and developing strategies for differentiating between the Town of Telluride and the Mountain Village. Aspen Downtown As the lead of a three firm team, BBC was retained by the Town of Aspen to analyze resort area retail trends and make recommendations as to how Aspen could revitalize its commercial and retail base. BBC's work incorporated a broader urban design and community planning effort aimed at supporting Aspen's appealing mix of tourist economy and residential community. Jackson, Tahoe & Breckenridge For three resort communities (separate assignments), BBC assisted in public/private efforts to invigorate and reposition these older resort communities. Each assign- ment involved an assessment of the resort's strengths and weaknesses, an identification of alternative strategies and the synthesis of opportunities and constraints into a com- munity plan. Town of Mammoth Lakes Although home to the largest ski area in North America in the early 1970's, Mammoth Lakes has seen a steady erosion of market share. In 1998, Intrawest Corporation announced their intention to build a 2,000-unit village and began a joint planning effort with the town. BBC conducted a number of studies related to this large-scale revitalization effort, including analyses of retail demand, feasibility analyses for recreation and conference centers and a long-term public facility plan. Snowmass Resort Association BBC was retained by the Snowmass Village Resort Association (SVRA) to complete a strategic plan for the revitalization of its marketing and conference center busi- ness. Snowmass operates the largest "public model" conference center in the western mountain resorts, but has been losing market share to new facilities. The final plan focused on funding reform, facility improvements and internal membership reorganization. Colorado Association of Ski Town (CAST) In November 2001, a BBC Director gave a presentation on resort industry economic and market trends to the CAST annual meeting. Similar presentations have recently been given in Aspen, Vail, Snowmass and Breckenridge. RESEARCH 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www.bbcresearch.com ? bbc@bbcresearch.com Land Development Strategic Planning Land development strategic planning has long been a vital component of BBC Research & Consulting's practice. Our expertise ranges from helping cities and counties stimulate investment and development to working with resorts and state land boards to guide future use and management of public land. BBC's land development work has focused on the Rocky Mountain West, extending across Colorado and into New Mexico, Wyoming and other Western states. "Vie Angel Fire Resort In order to compete in today's changing resort industry, ski areas are diversifying and adding new recreation amenities. New Mexico's Angel Fire Resort retained BBC to help them conduct a market and competitive analysis and develop a business plan that outlines a realistic land devel- opment strategy specific to this unusual resort. BBC's report defines a multi-year plan for balanced investment in winter and summer amenities which support a targeted series of real estate offerings, ranging from rural estate homes to time-share condos. Lake Creek Land Valuation BBC conducted a land valuation study for a 1,200 acre parcel in Eagle County, Colorado, to develop an accurate picture of the property's market value. BBC developed hard and soft costs associated with future development, including the costs of infrastructure development, a build- out schedule and an income and expense statement for the development of the property. A variety of strategies rang- ing from conservation to full development were assessed for the owner's consideration. Boulder Affordable Housing The City of Boulder retained BBC to analyze the financial consequences of programs designed to stimulate privately funded development of affordable housing options. The primary objective of the research was to demonstrate how a land owner or developer would respond to these pro- grams and assess how successful these programs would be in encouraging affordable housing development. Powderhorn Resort BBC worked with the Powderhorn Resort (Colorado) to complete a long-range development plan to help them adapt to the changing economics of resort operations. The first step was an analysis of Powderhorn's current market. By identifying existing customers, Powderhorn owners could better plan for the future. BBC's research identified how visitors currently use amenities at the Powderhorn Resort and the types of amenities they expect from a mountain resort, which included expanded retail and recreational opportunities. Wyoming State Lands For a large leasee of federal public lands in Wyoming, BBC completed a market and financial feasibility study and helped structure an innovative lease proposal involving use of the state Iands.This project, which remains under consideration by the Wyoming State Land Board, will increase revenue yield from this parcel by over 100 fold while allowing the state to retain property ownership and a portion of the developer profits. The Trust For Public Land BBC was retained by the Trust for Public Land to com- plete a financial and market analysis of a proposed major Routt County land purchase that would incorporate envi- ronmental protections and conservation easements with a small amount of private development. RESEARCH 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING . hhrrPCPArrh rnm ? hhrOhhrrptpArrh mm Retail Market Analysis BBC is often called upon to conduct retail market and development feasibility studies. Analyses are typically for development interests analyzing new development prospects and for communities seeking to stimulate retail markets and retail sales or analyze development impacts. L' _7 Frisco Wal-Mart For the Town of Frisco and the Wal-Mart Corporation, BBB analyzed the sales tax impacts of converting an exist- ing Wal-Mart to a Super Wal-Mart. BBC's research examined the Summit County market for grocery goods and likely responses of Wal-Mart's competitors. North Boulder Safeway BBC was retained by Safeway Stores, Inc. to complete a market study, financial feasibility analysis and economic impact analysis of a mixed-use commercial center in Boulder, Colorado. Town of Superior For the Town of Superior, BBC completed a 1997 evalua- tion of retail development opportunities within the town, including an assessment of the community's relationship with surrounding developments. This assessment has formed the basis for the City's very successful retail cap- ture strategy. Eagle Ranch In 2000, BBC was retained by East-West Partners to re- evaluate retail development plans at the Eagle Ranch project near Eagle, Colorado. BBC reviewed past studies, recent development trends in Eagle and suggested a new retailing strategy for this innovative new urbanist project. Woodland Park 7qq Faced with a proposed highway bypass of the community's historic downtown, the Town of Woodland Park sought BBC's help in evaluating the impact of highway rerouting on the community's retail core. BBC completed a market strategy study and has recently embarked on a second phase feasibility analysis to help relocate certain land uses that stand as an impediment to future development. Salt Lake City In 2000, BBC assisted Salt Lake City in negotiating with an outlet mall developer seeking financial incentives for a 1 million square foot retail project. BBC determined how much of the new mall's sales would likely be cannibalized from existing Salt Lake merchants and how much would lead to new tax revenue. This analysis bounded the incen- tive package considered by the City. Topeka Retail Study Despite a significant population and earnings base, the East Topeka neighborhood in Topeka, Kansas has seen its one retail center decline in recent years. Working with the City of Topeka and two neighborhood associations, BBC is currently preparing an analysis of the competitive posi- tion of the East Topeka Neighborhood that will be used as part of a larger neighborhood revitalization plan. KESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www.bbcresearch.com ? bbc@bbcresearch.com Fiscal Impact Analysis BBC has conducted numerous fiscal impact analyses for both public and private sector clients. The studies evaluate the costs and revenues generated by proposed developments and estimate the project's net impact on the finances of cities, counties or other local governments. These studies have included: 00- Project-specific studies for developers to accompany project submittals; 110- Comprehensive models for local governments allowing staff to analyze the impacts of a wide range of projects; 110- In-depth analyses of the financing structures of local governments, with recommendations for optimizing its equity or ability to pay for services; and 0- Impact fess Teton Springs For a proposed golf course resort development in Teton County, Idaho, BBC prepared a detailed assessment of the pro- ject's likely impacts on County finances. Through an analysis of the County budget, BBC estimated the likely costs and rev- enues that would be generated by the development. To ensure the accuracy of findings, BBC then supplemented the budget analysis with in-depth interviews of County staff. The resulting fiscal impacts reflected current County service levels as described in the budget, and any service delivery variations noted by staff. Adams County In Adams County, Colorado, BBC worked closely with County staff to develop a model that assesses the impacts of various types of growth on County finances. The model allows staff to test the effects of various development scenarios, including incorporation of proposed development areas and shifts in the amount and type of development proposed. BBC also assisted the County in analyzing a number of proposals for mitigating negative impacts, including imposition of a sales tax, establish- ment of a Law Enforcement Authority in the unincorporated County or a requirement that special districts provide certain public services. Mission Viejo Corporation For the developer of Highlands Ranch, a master planned com- munity southwest of Denver, BBC prepared a comprehensive financial feasibility study evaluating the impacts of incorporat- ing the community within Douglas County, Colorado. Additionally, we detailed the effect of the potential incorpora- tion on the Douglas County budget. Various Resort Communities In over a dozen resort-oriented communities, BBC has designed fiscal impact models demonstrating the likely effects of proposed developments. As part of this work, BBC generally prepares detailed fiscal impact assessments including evaluations of future service and financing needs. At times, these studies also include economic analyses estimating the impacts of devel- opment on the larger community. Town of Windsor BBC prepared a comprehensive analysis of Town costs and rev- enues to identify the degree to which various types of development paid for themselves. As part of this analysis, the Town's taxes and fees were compared to those of surrounding communities to evaluate the relative tax burden on Town resi- dents and businesses. After performing this analysis, various changes to the Town's financial structure were analyzed to assess their potential impacts. Chandler, Arizona For the City of Chandler, one of the fastest growing communi- ties in the United States, BBC analyzed all permitting and regulatory charges to ensure full cost recovery fees. BBC also designed a comprehensive impact fee system, which has gener- ated over $30 million a year for city infrastructure expansions. Impact Fees For communities that want to recover the capital costs of growth, BBC has developed impact fee systems that require new development to pay for the infrastructure it will require. Impact fee studies include an assessment of current service stan- dards and an evaluation of the requirements that growth will place on existing infrastructure. Recent impact fee studies have been conducted in Salt Lake City, Utah and Chandler and Fountain Hills, Arizona. RESEARCH & 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www.bbcresearch.com ? bbc@bbcresearch.com Downtown and Neighborhood Strategy Development Numerous communities have taken advantage of BBC's unique combination of market analysis skills, public sector experience and real estate expertise to develop strategic plans for their downtowns or selected neighborhoods. By combining analytical evaluations of the competitive advantages of certain areas with a commitment to public input, client communities have developed plans that are both exciting and feasible. Original Aurora BBC and its sub-consultants identified the most promis- ing concepts and sites for commercial redevelopment in Original Aurora and policies and strategies that the City can pursue to stimulate redevelopment. The project team assembled background data about area residents, existing retailers and nearby competition. The team then identi- fied several types of development that would fill market voids and/or build on community strengths. Team mem- bers also performed market testing of these retail, commercial and residential development concepts. Breckenridge BBC performed a strategic analysis of the Town of Breckenridge's downtown core that included market and transportation elements. Working closely with a trans- portation planning firm, BBC evaluated Breckenridge's current commercial environment, assessed retail trends and examined the likely impacts of a new gondola on retail development and circulation in the Town. Town of Avon The Town of Avon has always lacked a "downtown," but the community has a unusual opportunity to reposition an older core area with street modifications, transit con- nections and housing. BBC provided economic impact analyses, retail projections and market research support for a plan that was ultimately endorsed by town council. i M 'S y -n om' M ? i Crossroads Redevelopment In recent years, Boulder's Crossroads Mall has found itself squeezed by retail centers in newly developed areas around Boulder and facing a challenging) future. BBC was retained by the urban renewal district to model alternative futures and support an extensive public planning process. Lowry Redevelopment For the Lowry Economic Recovery Project, BBC provided technical support regarding economic and market support for alternative reuse options for Lowry Air Force Base in Denver. In addition, BBC participated in the formulation of all reuse plan alternatives, and analyzed their potential economic and fiscal impacts. Aspen Meadows BBC was retained by the Town of Aspen and a consor- tium of not-for-profits to develop a strategic and financial plan for long-term use of the Aspen Meadows property, home of the Aspen Institute. BBC's work also included a financial feasibility study of the hotel and conference cen- ter business. CONSULTING 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303321.2547 fax 303.399.0448 CONSULTING www hhrra?Parrh rnm ? hhrOhtxrr?aarrh mm Urban Renewal - Cost Benefit Analyses Urban renewal practices vary by state, but in most instances urban renewal powers offer authorities considerable leverage in stimulating change and redevelopment in local communities. BBC's studies often form the basis for tax increment financing (TIF) or other types of targeted funding. Denver Urban Renewal Authority For the Denver Urban Renewal Authority, BBC devel- oped a (TIF) forecasting model and prepared projections of property and sales tax increments associated with rede- velopment of Broadway Market Place; also conducted a retail market and financial feasibility study and authored an opinion letter for private offering of tax increment- supported bonds. Similar work has been done for the Elitch Garden's and the Adam's Mark projects. BID/DDA/Title 32 Formation Studies On many occasions, BBC has evaluated the feasibility of forming and employing various different forms of dis- tricts or authorities to solve local problems. The firm has helped structure downtown development authorities, metro districts, resort associations and less formal inter- governmental agreements. Assignments have ranged from a feasibility study for the formation of a new water dis- trict (Santa Fe, NM) to designing a value recapture district for a power line burial project (Greenwood Village). Boulder Urban Renewal Authority Faced with new competition from the Flat Irons Mall, the Boulder Urban Renewal Authority retained BBC to develop a tax increment forecasting model and provide projections of urban renewal area sales performance under various redevelopment scenarios. This was the first step in a major redevelopment effort with the City and the Crossroads Mall. Cherry Creek North BID y For one of the most successful business improvement dis- tricts in the State of Colorado, BBC completed a study of local market trends and then led a Board retreat looking for innovative ways to face new retail competition as well as secure funding for public improvements such as events and parking. Estes Park BBC advised the Estes Park Urban Renewal Authority on the feasibility of a new downtown convention center. BBC's analysis addressed market issues, program needs, tax financing feasibility and proposed the town's current project - a joint venture with the Holiday Inn. Jackson Hole Assisted the Jackson Hole Resort in developing a commu- nity management association to provide a common voice for the village's retail and commercial community. BBC projected net tax benefits from village redevelopment that could be used to support infrastructure investment and management association costs. RESEARCH 3773 Cherry Creek North Drive, Suite 850 ? Denver Colorado 80209-3827 ? 303.321.2547 fax 303.399.0448 CONSULTING www.bbcresearch.com ? bbc®bbcresearch.com MARK KIEFFER, AICP :: SENIOR ASSOCIATE mkieffer@nordsdullea.com NOR&IS DULLER 710 West Colfax Avenue Denver, Colorado 80204 T: 303.892.1166 F:303.892.1186 www.norrisdullea.com PROFESSIONAL PROFILE Mark Kieffer brings 20 years of experience working in community development throughout Colorado. Throughout these years, Mark has developed a successful reputation by working closely with builders in order to meet the objectives of both the community as well as the development industry. Before joining Norris Dullea, Mark had served as planning director for two of the fastest growing communities in the state. His development expertise includes a broad range of projects from new town development to historic preservation. Having authored several land use ordinances, design standards, and master plans, he has developed a comprehensive understanding of how the entitlement process in each jurisdiction operates. In addition to his work in the planning field, Mark's training and experience in mediation skills has provided him the opportunity to facilitate several multi-party disputes, including issues of state and federal concern. He has been instrumental in developing consensus within large and diverse groups in the development of public policy. His clear and concise presentation skills have proven to be an asset in the explanation of complex information to both small and large audiences. Mark's background also includes Urban Design, Project Management, Historic Preservation, Downtown Revitalization, Large Scale Land Development, and State and Federal Permitting Processes. PROFESSIONAL AFFILIATIONS American Institute of Certified Planners American Planning Association Urban Land Institute, Associate Member Colorado Real Estate Roundtable Denver Mediation, Volunteer Member Colorado Mediation Concepts, Advisory Board Urban Design Forum, former Executive Board member Denver Community Leadership Forum Certificate in Mediation and Group Facilitation (CDR) PROFESSIONAL EXPERIENCE Norris Dullea, Denver, CO, 2002 - Present Parkhill-Ivins, P.C., Director of Planning and Urban Design, 1998 - 2002 The City of Black Hawk, Planning Director, 1993 -1998 The Town of Parker, Planning Director, 1983 -1993 Douglas County, Senior Long Range Planner, 1980 -1983 EDUCATION Masters of Architecture in Urban Design, University of Colorado at Denver, 1987 Bachelor of Arts in Urban Planning, University of Illinois, 1980