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Town of Vail seeks comment on plan for deed-restricted housing on two sites

January 31, 2021, 8:46 am

The town of Vail last week issued the following press release seeking public comment on a revised draft pre-development agreement between the town and Triumph Development in pursuit of its Alternate Housing Sites Initiative:

The Vail Town Council will review a revised draft pre-development agreement between the town and Triumph Development in pursuit of its Alternate Housing Sites Initiative at its Feb. 2 evening meeting. The agreement, Resolution No. 3, is listed as action item 5.1 on the virtual meeting agenda which begins at 6 p.m. with opportunities for public comment before and during the meeting. The draft agreement was originally scheduled for review and adoption at the Jan. 19 meeting but was moved to the Feb. 2 meeting to address concerns forwarded to the town by Vail Resorts, who is not a party to the agreement. The draft agreement is a key component of the Vail Town Council’s Alternate Housing Sites Initiative.

The draft agreement addresses modifications to the approach the parties are pursing in setting the framework for the design development and entitlement process to construct a 100% deed-restricted residential development on Lot 3, Middle Creek as well as the future redevelopment of Timber Ridge Village Apartments. These two town-owned sites are key elements in achieving the town’s 2027 Housing Plan goals and a desire to protect and enhance critical wildlife habitat in East Vail along with implementing wildfire mitigation improvements on town and U.S. Forest Service lands. The Alternative Housing Sites Initiative was undertaken by the town in January 2020 to identify alternatives to the approved Booth Heights housing development on land owned by Vail Resorts.

Key terms of the draft agreement for the town, prepared previously, include:

  • Partnering with Triumph Development, as a co-applicant, on the design development and entitlement process for the development of Lot 3, Middle Creek for 100% deed-restricted housing.
  • Hiring Triumph Development for project management services in an amount not to exceed $300,000 and to fund the town’s investment in the design development and entitlement process in an amount not to exceed $390,000.
  • In exchange for the $690,000 investment in the entitlement process, the town will receive a deed restriction value of approximately $4.42 million.
  • Authorizing Triumph Development to proceed through the development review process for redevelopment of Timber Ridge Village Apartments upon the completion of Lot 3, Middle Creek.
  • Ensuring the development of at least 144 beds on Lot 3, Middle Creek.
  • Retaining town-ownership of the two sites and executing long-term ground leases resulting in transfer of the buildings to the town at the end of the lease terms.
  • Ensuring the ground leases are freely assignable to a third party at the town’s sole discretion upon completion of the buildings and improvements.

The agreement has been revised to include:

  • A waiver by Triumph Development foregoing any development that would otherwise be permitted under the approved development plan if development agreements are reached between the Town and Triumph.
  • A change to the indemnity provisions further protecting the town from any legal action a third party may pursue based upon the terms of the agreement.

As envisioned, the Middle Creek development would be designed as a 100% deed-restricted residential development to include a minimum of 144 beds. Construction of the new homes would begin in September 2021 and would be completed by November 2022. The town would retain the option to master lease and sublease units, if interested. The town and Triumph Development would enter into a long-term ground lease for the property in which the Vail Local Housing Authority would be granted an ownership interest in the entity formed by Triumph to construct and manage the development. Triumph Development would be obligated to pay all related costs of the construction on the site. Upon expiration of the ground lease, Triumph’s ownership interest in the buildings and improvements would transfer to the town.

The future re-developed Timber Ridge property would continue to be a 100% deed-restricted residential development and would include a minimum of 200 units of varying size. Triumph would be responsible for all costs incurred to receive entitlements and develop the site.  Triumph would enter into a long-term ground lease for the property with the town and construction would begin only after completion of the Middle Creek project; however, no sooner than April 2023. The redevelopment of Timber Ridge is to be completed by November 2025.

If approved by the Vail Town Council on Feb. 2, the town staff will prepare a final development agreement by and between the town and Triumph Development for Town Council approval

On a simultaneous track, the town is in the design and entitlement process of relocating the Children’s Garden of Learning early childhood education center to a temporary location at the charter bus lot in Lionshead. The relocation would make way for construction of the Middle Creek housing development on Lot 3. Under this arrangement, the town would fund the cost of the temporary facility with Vail Reinvestment Authority dollars and would work with CGL to help secure a permanent facility that can be a fixture of the Vail community for decades to come.

To review a copy of the modified pre-development agreement in its entirety, visit vailgov.com/alternativehousingsites. To forward public comment in advance of the Feb. 2 meeting, email publicinput.vailtowncouncil@vailgov.com. To register to provide live public comment at the meeting, visit https://www.vailgov.com/town-council.

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