WINTER PARK TOWN COUNCIL MEETING Winter Park Town Hall - 50 Vasquez Road Tuesday, March 1, :30 p.m. AGENDA

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1 WINTER PARK TOWN COUNCIL MEETING Winter Park Town Hall - 50 Vasquez Road Tuesday, March 1, :30 p.m. 1. Meeting Call To Order a. Pledge of Allegiance b. Roll Call of Council Members 2. Town Hall Meeting AGENDA 3. Consent Agenda a. Approval of February 16, 2016 Meeting Minutes 4. Action Items a. Special Event Permit SolShine Music Festival b. Letters of Intent to Purchase Attainable Housing and Parking Facilities 5. Town Manager's Report 6. Mayor's Report 7. Town Council Items for Discussion Town of Winter Park Mission Statement - To Actively Develop as a Quality Resort Community which Reflects the Beauty of Our Natural Surroundings

2 MINUTES DATE: Tuesday, February 16, 2016 MEETING: PLACE: PRESENT: OTHERS PRESENT: Winter Park Town Council Town Hall Council Chambers Mayor Jimmy Lahrman, Mayor Pro Tem Barbara Atwater, Councilors Jim Myers, Chuck Banks, Chris Seemann and Nick Kutrumbos, Town Manager Drew Nelson, and Town Clerk Taryn Martin Finance Director Bill Wengert, Town Planner James Shockey, Police Chief Glen Trainor Mayor Jimmy Lahrman called the meeting to order at 8:00 a.m. Mayor Lahrman led those present in reciting the Pledge of Allegiance. 2. Town Hall Meeting Nothing to Report. 3. Consent Agenda 3.a. Approval of February 2, 2016 Meeting Minutes Mayor Pro Tem Barbara Atwater moved and Councilor Chris Seemann seconded the motion to approve the Consent Agenda. Councilor Nick Kutrumbos abstained due to absence. Motion Carried: 6-0 Mayor Lahrman stated that Mrs. Catherine Ross from the Chamber of Commerce would give the Council a Progress Report first as she had a meeting to attend. Mrs. Ross stated that the Chamber is moving forward with an ad agency and that they had met the previous day to discuss planned work for Mrs. Ross stated that all event planning is on track for the summer. Mrs. Ross stated that the Chamber continues to work with Winter Park Resort on Springtopia, and that the performers would be G. Love and American Authors. Mrs. Ross thanked the Council for grooming the Fraser River Trail as it is a great amenity for residents and guests. 4. Action Items 4.a. Final Plat Extension Serenity Trail Town Planner James Shockey stated that the plat is located by Timber House Road, and that this is their second extension request. Councilor Mike Periolat stated that he is bothered by the fact that they are not marketing the product at all. Councilor Chris Seemann moved and Councilor Jim Myers seconded the motion approving the Final Plat Extension for Serenity Trail. Motion Carried: 6-1 Winter Park Town Council February 16, 2016 Minutes Page 1

3 4.b. Final Plat Extension Winter Park Station Town Planner James Shockey stated that this is the eleventh extension request for the Winter Park Station Final Plat, but that the applicant has a plan and is making improvements. Councilor Mike Periolat moved and Councilor Jim Myers seconded the motion to approve the Final Plat Extension for Winter Park Station. Motion Carried: c. Final Plat Extension Rendezvous at Winter Park, Filing 1 Town Planner James Shockey stated that this is the thirteenth extension request for Rendezvous at Winter Park, and that the applicant has hopes to record within six months. Mr. Shockey stated that the applicant had recently put in a secondary access road and all fees had been paid. Councilor Mike Periolat moved and Councilor Chris Seemann seconded the motion to approve the Final Plat Extension for Rendezvous at Winter Park, Filing 1. Motion Carried: d. Special Use Permit Headwaters Center Town Planner James Shockey stated that the permit has been requested to allow for a rock crushing operation for ten days. Mr. Shockey stated that the applicant wished to start as soon as the permit is approved and would have until May 1 st to complete the project. Mr. Shockey stated that the crushing can be shut down by Town Staff at any time. Project Manager Pete Van Deusen stated that it is in the best interest of the applicant to use all of the rock and that he believes it s possible. Councilor Mike Periolat moved and Councilor Chris Seemann seconded the motion to approve the Special Use Permit for the Headwaters Center. Motion Carried: e. Final Plat Reunion Station at Winter Park Town Planner James Shockey stated that the Council had reviewed the Preliminary Plat in the summer, and that all conditions of that plat have been met. Mr. Shockey stated that the Planning Commission had reviewed the Final Plat and recommended approval with the two conditions noted. Councilor Chris Seemann moved and Councilor Chuck Banks seconded the motion to approve the Final Plat for Reunion Station at Winter Park. 4.f. Reunion Station Agreement Town Planner James Shockey stated that one of the conditions noted in the approval of the Final Plat of Reunion Station is that all properties affected by the requested five foot setback, rather than the ten foot setback typically required, sign an agreement. Mr. Shockey stated that Staff recommends approval of the agreement. Councilor Mike Periolat moved and Councilor Chris Seemann seconded the motion to approve the Reunion Station Agreement. Motion Carried: g. DIA Reunion Station at Winter Park Town Planner James Shockey stated that the DIA is a part of every Final Plat and will provide surety to the Town. Mr. Shockey stated that Staff recommends approval. Councilor Mike Periolat moved and Councilor Jim Myers seconded the motion to approve the DIA for Reunion Station at Winter Park. Motion Carried: 7-0 Winter Park Town Council February 16, 2016 Minutes Page 2

4 4.d. Ordinance 496 An Ordinance Amending Chapter 2, Title 3 of the Winter Park Town Code by the Addition of a New Section , Establishing an Enhanced Sales Tax Incentive Program, Second Reading and Public Hearing Town Manager Drew Nelson stated that the Ordinance had not changed since the First Reading, and that it falls in line with a lot of the Town s Strategic Economic Development Plan goals. Mayor Lahrman opened the Public Hearing and, upon hearing no comments, closed the Public Hearing. Mayor Pro Tem Barbara Atwater moved and Councilor Chris Seemann seconded the motion to approve Ordinance 496 An Ordinance Amending Chapter 2, Title 3 of the Winter Park Town Code by the Addition of a New Section , Establishing an Enhanced Sales Tax Incentive Program, Second Reading and Public Hearing. Motion passed by the following roll call vote: Jimmy Lahrman Aye Jim Myers Aye Nick Kutrumbos Aye Chuck Banks Aye Barbara Atwater Aye Mike Periolat Aye Chris Seemann Aye 5. Progress Reports 5.a. Fraser Valley Recreation Scott Ledin Mr. Scott Ledin stated that the Rec Center and Icebox had just finished a large software upgrade. Mr. Ledin stated that the HGTV show Tiny Houses had just shot some footage at the Rec Center. Mr. Ledin stated that there will be a Board Member election this spring and that two people had expressed interest so far. Mr. Ledin stated that the Icebox hosted over sixty games in January. 5.b. 5.c. 5.d. 5.e. Grand County Water & Sanitation District #1 Bruce Hutchins Not Present. Winter Park Water & Sanitation District Mike Wageck Mr. Mike Wageck stated that everything is running well and the ski area has been busy, which has placed a strong demand on systems. Mr. Wageck stated that the District is still working on planning the Jim Creek Pipeline project as well as a sewer line project on Balsam in Old Town. Winter Park Resort Doug Laraby Not Present. Councilor Barbara Atwater stated that the Council would appreciate hearing updates from Mr. Laraby, even if he is unable to make every meeting. Hideaway Junction Mike Periolat Nothing to Report. 6. Town Manager s Report Town Manager Drew Nelson stated that the Town had purchased ten used transit buses at an RTD auction. Mr. Nelson stated that all of the buses are ADA accessible and that total out-of-pocket cost to the Town was $17, Mr. Nelson stated that the buses are in great shape and the higher mileage makes the Town more competitive for grant funding. Mr. Nelson stated that Staff had narrowed the list of potential Transit Managers down to five applicants. 7. Mayor s Report Nothing to Report. 8. Town Council Items for Discussion Winter Park Town Council February 16, 2016 Minutes Page 3

5 The Council discussed potential Retreat dates and tentatively settled on April 19-21, Councilor Nick Kutrumbos stated that the Grand Foundation had been doing a lot of work related to higher education, and that they had hired a Higher Education Director. Councilor Kutrumbos stated that there has been a lot of interest from Colorado Universities. Councilor Barbara Atwater moved and Councilor Chris Seemann seconded the motion to go into Executive Session in accordance with C.R.S. Title 24, Section 6, Subsection 402-4(e). 9. Executive Session 9.a. Negotiations in Conformance with C.R.S. Title 24, Section 6, Subsection 402-4(e) for the Purpose of Determining Positions, Strategy or Instructions to Negotiators Regarding the Sitzmark South Property. Upon conclusion of the discussion, the motion was made by Councilor Chris Seemann and seconded by Councilor Mike Periolat and unanimously carried to return to Regular Session. Those in attendance at that time were: Mayor Jimmy Lahrman, Mayor Pro Tem Barbara Atwater, Councilors Jim Myers, Mike Periolat, Chuck Banks, Chris Seemann, and Nick Kutrumbos, Town Manager Drew Nelson, Finance Director Bill Wengert, Town Planner James Shockey, and Town Clerk Taryn Martin. Town Manager Drew Nelson stated that Town Attorney Kendra Carberry had ed during Executive Session to recommend that Ordinance 496 include language regarding enhanced architectural features. Mayor Jimmy Lahrman reopened the Public Hearing and, upon hearing no comments, closed the Public Hearing. Councilor Chris Seemann moved and Councilor Mike Periolat seconded the motion to change the language in Ordinance An Ordinance Amending Chapter 2, Title 3 of the Winter Park Town Code by the Addition of a New Section , Establishing an Enhanced Sales Tax Incentive Program, Second Reading and Public Hearing to include enhanced architectural features. Motion Passed by the following roll call vote: Jimmy Lahrman Aye Jim Myers Aye Nick Kutrumbos Aye Chuck Banks Aye Barbara Atwater Aye Mike Periolat Aye Chris Seemann Aye There being no further business to discuss, upon a motion regularly adopted, the meeting was adjourned at 11:20 a.m. The next scheduled meeting of the Town Council will be Tuesday, March 1, 2015 at 5:30 p.m. Taryn M. Martin, Town Clerk Winter Park Town Council February 16, 2016 Minutes Page 4

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12 MEMORANDUM To: Town Council From: Drew Nelson, Town Manager Date: March 1, 2016 Re: Letters of Intent to Purchase Attainable Housing and Parking Facilities BACKGROUND The Town of Winter Park has been in negotiations with the Winter Park Development Company ( WPDC ), owner of the Sitzmark South property that was purchased from the Town in December 2015, on acquisition by the Town of portions of the development for attainable housing units and parking facilities. Staff has been working with consultants from Ehler s, Inc. to identify funding sources for these purchases, and staff has been in contact with bond counsel on assistance as we move forward on securing said funding. WPDC has proposed the construction of forty one (41) multi-family residential units as part of the overall development of the property. These units are proposed at the southeast corner of the property, adjacent to a 144-space parking structure that would serve the attainable units as well as the proposed grocery market. The remainder of the site would consist of up to thirty (30) market-rate duplex/townhome units, an additional 14,900 square feet of commercial space, and a clubhouse facility. ANALYSIS As identified in the attached Letter of Intent, the Town would purchase the 41 attainable units at a purchase price of $230 per square foot of habitable space across 41,000 square feet of development, amounting to a purchase of approximately $9,430,000. Staff and the developer met to discuss unit mix and style on February 23 rd, and it was agreed by their design team to target a mixture of one- and two-bedroom units, with the two-bedroom units consisting of approximately 70% of the unit mix (this may vary slightly as design considerations come into play). Staff has been in contact with other resort communities currently constructing attainable housing to identify price levels. In Vail, projects under construction are currently $250 to $281 per square foot without land value included (the WPDC proposal includes the land value. In Breckenridge, projects under construction are currently $293 to $393 per square foot with land included. It is Town Staff s opinion that the proposed per-square-foot price is well within acceptable levels for affordable housing development. Also identified in the attached Letter of Intent is a proposed purchase of a 54,000 square foot, two-level parking structure containing 144 parking spaces adjacent to the attainable units and grocery market for a purchase price of $4,500,000. The parking structure would be accessible from US Highway 40, Baker Drive and Hi Country Drive. The parking spaces are slightly oversized when compared to other structured parking spaces (proposed as 375 square feet per space versus an industry standard of between 325 and 350 square feet per space). This is to accommodate larger vehicles commonly seen in our visitation patterns. The grocery tenant has identified a need for 80 parking spaces adjacent to their frontage, which is provided for in the current plan. Based on the site plan and anticipated parking demand, there will be between 14 and 23 leftover parking spaces on the site once development is complete. Town staff, along with the Town Engineer, met with the development team and construction professionals to break down the proposed pricing for the parking structure. The square foot pricing of the parking structure $83 per square foot) is in line with other public structures located in Denver and Glenwood Springs that are currently under construction. This purchase price also includes infrastructure (i.e. roadways) accessing the parking structure, which drives the per-square-foot price to approximately $64 per square foot, which is comparable to other parking structures being constructed in Ft. Collins, Arvada, and other locations. The Town Engineer was in agreement that the price points are in line with industry standards. 1

13 It should be noted that these Letters of Intent are non-binding, and are a starting point for additional negotiations on Purchase and Sale Agreements that will further define and mold the development. These Letters allow the developer to move forward with additional design and programming for the site, and provide some negotiating room with potential tenants of the grocery market and other end users. It should also be noted that these Letters of Intent have been reviewed and approved by the Town Attorney. RECOMMENDATION Staff recommends the Town Council approve the attached Letters of Intent by adopting the following motion: I move to approve the Letters of Intent with the Winter Park Development Company for the acquisition of forty one (41) housing units for a purchase price of two hundred and thirty dollars ($230) per square foot and a parking structure consisting of one hundred forty four (144) parking spaces for a purchase price of four million five hundred thousand dollars ($4,500,000) on the Sitzmark South property attached to the staff memorandum of March 1, 2016 with the following findings of fact: The purchase of the attainable housing units is in conformance with the Town of Winter Park Affordable Housing Needs Assessment, and is necessary to partially offset the current and future demand for affordable housing in Winter Park. The purchase of the parking structure is in conformance with the Sitzmark Properties Master Plan, and is necessary to provide adequate infrastructure to enable a tenant mix that meets the demands identified in the Sitzmark Properties Market Analysis. and I further move to instruct staff to prepare a resolution to this effect to be signed by the Mayor. Alternative Motion In the event the Town Council wishes to deny the proposed Letters of Intent, staff recommends the Town Council make the following motion: I move to deny the Letters of Intent with the Winter Park Development Company attached to the staff memorandum of March 1, 2016 due to the following findings of fact: and I further move to instruct staff to prepare a resolution to this effect to be signed by the Mayor. 2

14 WINTER PARK DEVELOPMENT COMPANY 1500 Wynkoop Street, Suite 200 Denver, Colorado February 16, 2016 TO: Drew Nelson, Town Manager Town of Winter Park 50 Vasquez Road Winter Park, CO Re: Attainable Housing at Winter Park Town Center (the Project ) Dear Drew: I am pleased to present this letter outlining the terms under which Winter Park Development Co LLC ( Developer ) may be willing to proceed with construction of attainable housing units at the above referenced Project with the agreement of the Town of Winter Park, Colorado ( Town ) to purchase such attainable housing units. The parties acknowledge that the Town desires to increase the supply of attainable housing within the Town boundaries to help meet the housing needs of the Town s permanent residents who find themselves increasingly being priced out of the housing market by vacation home purchasers and short-term rental projects. This letter is not intended to be a binding contract, but is intended only to provide the basis of negotiating a purchase and sale agreement between the Developer and the Town. Project Address: Attainable Housing: Purchase Price: Town Financing Of Purchase: U.S. Hwy. 40, Winter Park, Colorado (see attached site plan) Forty one (41) attainable housing units in the location depicted on the site plan shown in Exhibit A (the Attainable Housing Units ) The Town will pay Two Hundred Thirty and No/100 Dollars ($230.00) per square foot, measured from the outer walls of a unit, from the center line of demising walls between units, and from the center line of hallways and entryways abutting a wall defining a unit, for each Attainable Housing Unit. The Town intends to obtain the financing to purchase the Attainable Housing Units from the issuance of bonds or similar instruments. The Town agrees that the Developer will not be obligated to commence construction of the Attainable Housing Units until such time as the Town provides to the Developer a binding commitment to provide the required financing in a form reasonably acceptable to the Developer. { :3}

15 Sales/Use Tax Rebates: The Town will rebate all sales and use taxes imposed by the Town on materials used in connection with construction of the Attainable Housing Units in accordance with existing Town ordinances. Closing of Purchase: Documentation of Agreement: Preparation of Agreements: The Town will be obligated to close on the purchase of each Attainable Housing Unit within five (5) business days after issuance of a certificate of occupancy for such unit. Such certificate of occupancy may be temporary or permanent, as long as the purchaser is legally permitted to occupy the unit. The Town s agreement to purchase the Attainable Housing Units will be evidenced by the execution of an agreement for the purchase and sale of the Attainable Housing Units between the Town and the Developer (the PSA ). The PSA will include terms typical for the purchase and sale of residential units in Grand County entered into on a pre-construction basis. Upon mutual execution of this letter of intent, the Developer will have its counsel prepare a draft of the PSA. The parties will use their best efforts to complete the drafting and approval of the PSA within fortyfive days after mutual execution of this letter of intent. This letter, though not binding, is intended to serve as the basis for negotiating a final PSA which will contain material terms not mentioned in this letter. The parties will not be bound to the PSA unless and until each party reviews, approves and executes a final and definitive written PSA. If these business terms are acceptable, please indicate so as soon as possible. Upon receipt of your signature on this letter, we will commence preparation of the PSA for your review. Kindly, Winter Park Development Co LLC, a Colorado limited liability company By: Byron Besse, Jr., Manager { :3}

16 The Town of Winter Park, Colorado, by and through the duly authorized signatory below, hereby agrees to proceed with negotiations of an agreement for the purchase and sale of Attainable Housing Units as described above. Town of Winter Park, Colorado By: Name: Title: Date: { :3}

17 { :3} EXHIBIT A The Site Plan: see Attainable Housing Units

18 WINTER PARK DEVELOPMENT COMPANY 1500 Wynkoop Street, Suite 200 Denver, Colorado February 16, 2016 TO: Drew Nelson, Town Manager Town of Winter Park 50 Vasquez Road Winter Park, CO Re: Winter Park Town Center (the Project ) Dear Drew: I am pleased to present this letter outlining the terms under which Winter Park Development Co LLC ( Developer ) may be willing to proceed with construction of a parking structure for the above referenced Project for purchase by the Town of Winter Park, Colorado ( Town ). The parking structure is necessary in order to provide sufficient parking and development area to build a grocery and related commercial and residential buildings as part of the Project. This letter is not intended to be a binding contract, but is intended only to provide the basis of negotiating a development agreement and/or other agreements between the Developer and the Town. Project Address: Parking Structure: U.S. Hwy. 40, Winter Park, Colorado (see attached site plan) Approximately 144 parking spaces on two parking levels as depicted on the site plan shown in Exhibit A (the Parking Structure ) Purchase Price: Documentation of Agreement: The Town will pay Four Million Five Hundred Thousand and No/100 Dollars ($4,500,000.00), plus interest as set forth below, to purchase the Parking Structure (the Purchase Price ). Interest will be added to the principal sum of $4,500, at the rate of 8% per annum, with such interest accruing on amounts paid by Developer for design, engineering and construction of the Parking Structure commencing on the dates such costs are paid by Developer and accruing until the Town has closed on the purchase of the Parking Structure. Closing on the purchase of the Parking Structure shall occur on or before thirty (30) days after completion of construction of the Parking Structure. The Town s agreement to pay the Purchase Price to Developer will be evidenced by a purchase and sale agreement and such other agreements and instruments as the Town and the Developer may mutually agree upon.

19 Preparation of Agreements: Upon mutual execution of this letter of intent, the Developer will have its counsel prepare a draft of the required agreement or agreements. The parties will use their best efforts to complete the drafting and approval of such agreement and/or agreements within forty-five days after mutual execution of this letter of intent. This letter, though not binding, is intended to serve as the basis for negotiating a final written agreement or agreements which will contain material terms not mentioned in this letter. The parties will not be bound to an agreement unless and until each party reviews, approves and executes a final and definitive written agreement or agreements. If these business terms are acceptable, please indicate so as soon as possible. Upon receipt of your signature on this letter, we will commence preparation of draft agreement or agreements for your review. Kindly, Winter Park Development Co LLC, a Colorado limited liability company By: Byron Besse, Jr., Manager The Town of Winter Park, Colorado, by and through the duly authorized signatory below, hereby agrees to proceed with negotiations of an agreement and related documents as described above. Town of Winter Park, Colorado By: Name: Title: Date:

20 EXHIBIT A The Site Plan: see Parking Structure