SNAKE RIVER PLANNING COMMISSION. January 19, :30 P.M. Dillon Town Hall 275 Lake Dillon Drive Dillon, Colorado

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1 PLANNING DEPARTMENT Peak One Dr. PO Box Frisco, CO SNAKE RIVER PLANNING COMMISSION January 19, :30 P.M. Dillon Town Hall 275 Lake Dillon Drive Dillon, Colorado Commission dinner at 5:00 p.m. I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF SUMMARY OF MOTIONS: December 15, 2016 IV. APPROVAL OF AGENDA: Additions, Deletions, Change of Order V. CONSENT AGENDA No items VI. PUBLIC HEARINGS PLN Wintergreen PUD Modification The Wintergreen Major PUD amendment request is to consolidate parcels A, B, and C into a single parcel for the purpose of (1) reallocating existing density within the Wintergreen neighborhood boundary to allow for more appropriate development of the site and, (2) redefine who is eligible to live in the neighborhood by expanding from Keystone Resort PUD-only employees to allowing residents who work in Summit County. VII. VIII. IX. WORK SESSION ITEMS None DISCUSSION ITEMS Suggested Revisions for Consideration in Next Master Plan Update Countywide Planning Commission issues Follow-up of previous BOCC meeting Planning Commission Issues ADJOURNMENT * Allowance for Certain Site Plans to Be Placed on the Consent Agenda: Site plan reviews consisting of three (3) to a maximum of 12 multifamily units for the total development parcel or project may be placed on a Planning Commission s consent agenda, which allows for expeditious review and approval of these smaller projects. Site plans may only be placed on the consent agenda if the recommendation does not include any conditions. Single-family and duplex development that are required to have a site plan review by a Planning Commission due to a plat note, PUD requirement or other regulatory mechanism may also be placed on a Commission s consent agenda. A Planning Commission member may pull such agenda item off the consent agenda to allow staff or the applicant to address issues or questions related to the site plan review criteria for decision prior to taking action.

2 SNAKE RIVER PLANNING COMMISSION SUMMARY OF MOTIONS December 15, 2016 COMMISSION MEMBERS PRESENT: Denise Levy, Wendy Myers, Marshall Masek, Warren Reese, Erik Vermulen, & Derek Gamburg STAFF PRESENT: Don Reimer, Sid Rivers Myers, Chair, called the meeting of the Snake River Planning Commission to order at approximately 5:30 p.m. APPROVAL OF SUMMARY OF MOTIONS: The Summary of Motions from the August 18, 2016 and November 17, 2016 meetings was approved. CONSENT AGENDA: None PUBLIC HEARINGS: PLN Alders Townhomes, Phase 3: 26 units Site plan review of Alders Townhomes, Phase 3, consisting of 13 duplex buildings (26 units); Parcel 5, Estates at the Alders, 4.26 acres, zoned Keystone PUD. Motion: Gamburg made a motion to approve with the following findings, and conditions. Levy seconded the motion. FINDINGS: 1. Upon compliance with the conditions set forth below, the application complies with County Zoning Regulations, including but not limited to permitted uses, density, employee housing, landscaping, the Keystone PUD requirements, design standards and other development regulations and standards. 2. The application complies with County Road & Bridge standards since access to the duplex units will be provided from Independence Road and Outpost Drive, which will be constructed prior to the sale of any duplex in this project. 3. The application complies with County Subdivision Regulations. Water will be provided by the Snake River Water District, and sewer services will be provided by the Snake River Waste Water Treatment Plant. The Road and Bridge and Engineering Departments have approved of Independence Road and Outpost Drive as proposed. 4. Upon compliance with the conditions set forth below, the application will comply with previous plans approved for the site still in effect. The conditions of approval for project PLN16-118, a general subdivision exemption for Parcel 5, shall apply to this development. CONDITIONS: 1. The plat for application PLN16-118; Parcel 5, The Estates at the Alders shall be recorded prior to the issuance of any building permits. 2. Prior to the issuance of any building or grading permits a Site Improvements Agreement with a full financial guarantee shall be provided. 3. Prior to issuance of the overall Site Grading and Excavation Permit, an updated geotechnical report addressing the site soil conditions must be provided. Paving Structural Sections and typical retaining wall sections/ details must also be provided.

3 4. Vehicular turn-arounds shall be constructed and approved signs installed at the time building construction is started. 5. All proposed waterlines and fire hydrants shall be installed inspected and accepted by the local water district. The water system shall be in-service at the time building construction is started. Vote: 6-0 WORK SESSION ITEMS: None DISCUSSION ITEMS: Countywide Planning Commission issues: No items. Follow-up of previous BOCC meeting: No items. Countywide Comprehensive Plan and Basin Master Plans: Don Reimer discussed the outline of the process to update the Comprehensive Plan and Basin Master Plans pending direction from the BOCC. ADJOURNMENT: The meeting was adjourned at approximately 6:22 p.m. Respectfully submitted, Sid Rivers, Planner II

4 PLANNING DEPARTMENT Peak One Dr. PO Box Frisco, CO STAFF REPORT TO: FROM: Snake River Planning Commission Dan Osborn, Senior Planner FOR: Meeting of January 19, 2017 SUBJECT: Planning Case PLN16-131, Keystone Major PUD Modification for the Wintergreen Neighborhood APPLICANT: Gorman and Company, represented by Kimball Crangle OWNER: REQUEST: Vail Summit Resorts, Inc. To consolidate parcels A, B, and C into a single parcel for the purpose of allocating existing density within these Wintergreen Neighborhood Parcel boundaries to allow for more appropriate development of the site; and redefine who is eligible to live in the neighborhood by expanding from Keystone Resort PUD-only employees to allowing residents who work in Summit County. The request also allows Vail Summit Resorts, Inc, to receive an Employee Housing Unit Credit (EHC) for some units whether or not the employee works within the PUD. PROJECT DESCRIPTION: Location: Legal Description: Existing Zoning: Proposed Use: Highway 6, Keystone, Colorado. East of the Antlers Gulch Townhomes. Parcel I: Wintergreen, according to the Plat thereof, recorded February 4, 1982 as Receptions No , expecting there from parcel No. 5 and Parcel No. 6 as defined in that Warranty Deed to the Board of County Commissioners of Summit County, recorded May 15, 1987 as Receptions No In the office of the Summit County Clerk and Recorder, State of Colorado; and Parcel 2: Tract B Wintergreen Subdivision, Filing No. 2 County of Summit, State of Colorado Keystone PUD Up to 243 actual Employee Housing Units contained within the Wintergreen Neighborhood. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 1 of 19

5 Other Uses: Total site area: Adjacent land uses: East: West: North: South: Resort support uses including resort operations and offices. Child-care, community facilities and other public areas Acres Keystone employee housing (Keystone PUD) Antlers Gulch, Frey Gulch townhomes (Antlers Gulch PUD) Vacant USFS land Natural Resources (NR-2) district Highway 6 and Pines at Keystone condominium development (Keystone PUD). DEVELOPMENT PROPOSAL: Development acreage, density limits, and land uses: Existing PUD Parcels Parcel A Parcel B Parcel C Parcel D Parcel E Existing PUD Acreages, Units, and Land Use 10.4 Acres 23 Units 2,000sq Ft. Commercial Resort support uses Child-care Community facilities Other public areas 13.9 Acres 180 Units Resort support uses Child-care Community facilities Other public areas 4.1 Acres 40 Units Resort support uses Child-care Community facilities Other public area 8 Acres Open space, School site 25.3 Acres Open space Proposed PUD Parcels Parcel A (Parcel A now encompasses the former Parcels A, B, and C) Parcel D Parcel E Proposed PUD Acres, Units, and Land Uses 28.4 Acres 243 Actual Employee Housing Units 2,000 Sq Ft Commercial Resort support uses Child-care Community facilities Other public areas No Change No Change Setbacks: No changes proposed. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 2 of 19

6 BACKGROUND: This application is for a Major Modification to the Keystone PUD affecting two parcels of land (three PUD Neighborhood Parcels) in the Wintergreen Neighborhood. The Wintergreen Neighborhood is located between Keystone and Dillon on the north side of Highway 6, adjacent to the Antlers Gulch and Frey Gulch Townhomes. The Wintergreen Neighborhood was established as part of the Keystone Resort PUD in March 1995 and has been amended over the years, most recently in September The PUD establishes the overall use of the property, and proposes a general development plan in addition to guidelines that must be followed by the owners and developers of property within its boundaries. From its inception, the Wintergreen Neighborhood has been designated for and envisioned as a location for both seasonal and long-term housing for Keystone PUD employees. As noted above, the current Wintergreen Neighborhood is comprised of parcels A, B, C, D, and E. Parcels A, B, and C allow a total of up to 243 actual employee units on 28.4 acres as well as resort support uses, offices, community facilities and public areas, in addition to child-care and up to 2,000 sq ft of commercial. Parcel D is 8 acres and allows for open space and an elementary school site. Parcel E is 25.3 acres for use as open space. Based on the merits, time sensitive nature, and the limited scope of the request, the applicant requested the work session be waived. This request was granted. The application proposes to reallocate density within the existing boundaries of Parcels A, B, and C into a single parcel to allow thoughtful development of the property and amends the PUD text related to permitted occupancy. The change is intended to facilitate the provisions of a variety of affordable rental housing types with opportunities for occupants to stay in the neighborhood as they advance in their careers. Staff agrees that combining Parcels A, B, and C and re-allocating the density into a single parcel optimizes the developability of the site by clustering density closer to Highway 6 and respecting steeper slopes on the north side of the property. This change limits disturbance on steep slopes, preserves large areas of open space and wetlands, as well as minimizes infrastructure costs and impacts to adjacent lands. There are no proposed PUD changes related to requirements for setbacks, building heights, or other general requirements. Section B 3, Parking, clarifies the requirements for parking in the Wintergreen Neighborhood and standardizes the requirement to make it consistent with the Ski Tip and Old Keystone neighborhoods. The proposed PUD Modification does not request any additional density or move density from other neighborhoods it is limited to reallocating existing density within the Wintergreen Neighborhood. Final site design will be determined through the Site Plan review process at a future date. REVIEW CRITERIA: Section Code states that the BOCC may approve a major PUD modification zoning amendment only if the application meets all relevant County regulations and standards and makes the following findings: PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 3 of 19

7 A. The modification is consistent with the efficient development and preservation of the entire PUD. B. The modification does not affect, in a substantially adverse manner, either the enjoyment of land abutting upon or across a street from the PUD or the public interest. C. The modification is not granted solely to confer a special benefit upon any person. D. The proposed PUD modification is in general conformance with the goals, polices/actions and provisions of the Summit County Countywide Comprehensive Plan and any applicable basin or subbasin master plans. E. The proposed PUD modification is consistent with the purpose and intent of the County's Zoning Regulations. F. The proposed PUD modification is consistent with the County s Rezoning Policies. G. The proposal furthers the policies constituting the purpose and intent allowing for the establishment of Planned Unit Development, as set forth in of this Code, as well as the policies supporting the purpose and intent of allowing a Major PUD Modification Zoning Amendment, per of this Code. H. Adequate access and infrastructure are available to serve the proposal, in light of the both the existing and reasonably anticipated demands on such access and infrastructure. I. In light of the purpose and intent of PUD designations and modifications, the proposal furthers the public health, safety integrity and general welfare, as well as efficiency and economy in the use of land and its resources. J. The applicant has provided final evidence of adequate water, sewer, access, utilities, and other required infrastructure. K. The Review Authority has reviewed and approved the PUD text and any revised exhibits, and, for the BOCC s review, the PUD is suitable for the Chairman s signature and recordation. APPLICATION SUMMARY: The property owner, Vail Summit Resorts, Inc. (VSR), is working with Gorman and Company, LLC, on a long-term (99-year, with 99-year renewal option) ground lease to provide affordable work force employee housing as required by the Keystone PUD. The ground lease effectively reduces the development costs and allows Gorman and Company to cover the construction costs with private equity and a mortgage. A master lease will be used by VSR to hold 36 seasonal units on a year round basis for an initial 10-year term and enables Gorman and Company to raise private equity and debt to afford construction of the project. A key goal of the Keystone PUD is to meet the housing requirements of employees who work within the PUD and adjacent resort operations. It is the intent of the applicant to provide a diversity of employee housing types by providing employees with seasonal and year-round professional housing options in addition to low-income rental units 1. Changes to the PUD required for this request include text changes to the following documents Keystone Resort PUD Sections A.1, B.3, and B.6; Exhibit C, 1 The Low Income Rental Units, as noted in Exhibit P-4, are planned to be developed as a Low Income Housing Tax Credit (LITHC) project and will follow those program guidelines. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 4 of 19

8 Definitions; Exhibit P, Restrictive Covenants; and, Exhibit M, Neighborhood Densities. New Exhibits will be P-4 and M-13. A Major PUD Modification is required when a change of use request, or other modification, significantly changes or affects the intent of the PUD. The application request is to combine the density on three adjacent Wintergreen Neighborhood Parcels, into one new Parcel known as Parcel A. In addition, VSR requests to lease the employee units within the project to not only Keystone employees but, also to any county-wide employee through a priority leasing process. VSR has requested a change to the existing allowances for non-pud employees in employee housing, and desires to receive Employee Housing Credit (EHC) in certain instances. VSR proposes to add a new covenant to Exhibit P of the PUD, Exhibit P-4 that details the proposed priority leasing process. Priority Leasing Process: Priority shall be given to Employees and Employers, as defined in the Keystone Resort PUD. Such priority shall be implemented by providing an exclusive, priorityleasing period of twenty (20) calendar days upon vacancy of any unit. Meaning, upon initial lease-up of the project or upon receipt of notification from an existing tenant of their intent to vacate a unit, the unit shall be held exclusively for offering to an Employee or Employer for a period of twenty (20) calendar days. At such time, if the unit is not leased by an Employee or Employer, the unit may be offered to a County-wide Employee. The restrictive covenant would apply to certain units within Parcel A and subjects them to the priority leasing process, with exception of the Low Income Rental Units (LIHTC), which would be managed in accordance with the rules and regulations of the LITHC program. The proposed changes to the definitions section of the PUD defines County-wide Employee, Qualified Occupant, Wintergreen Low Income Rental Unit, Wintergreen Long Term Rent Unit, and Wintergreen Seasonal Housing Unit as: County-wide Employee: A person who is employed by any individual or business located within Summit County, Colorado. Qualified Occupant: (i) with respect to Seasonal Housing Units and Long Term Rental Units, means an Employee, a Temporary Employee, an Employer and their respective spouses, domestic partners and dependents; or and (ii) with respect to Employee-Owned Restricted Units, has the meaning given the term in Exhibit P-2 to this PUD; or (iii) with respect to Wintergreen Neighborhood Units has the meaning given the term in Exhibit P-4 to this PUD. Wintergreen Low Income Rental Unit: A dwelling unit located within Parcel A of the Wintergreen Neighborhood that complies with Low Income Housing Tax Credit (LIHTC) program guidelines. Such unit shall consist of a kitchen, bath, living room and bedrooms and contain a minimum of 250 square feet of living space per bedroom. The unit may be a studio, one, two or three bedroom configuration. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 5 of 19

9 Wintergreen Long Term Rental Unit: A dwelling located within Parcel A of the Wintergreen Neighborhood is leased to a Qualified Occupant. Such unit shall consist of a kitchen, bath, living room and bedrooms and contain a minimum of 250 square feet of living space per bedroom. The unit may be a studio, one, two or three bedroom configuration. Wintergreen Seasonal Housing Unit: A dwelling unit located within Parcel A of the Wintergreen Neighborhood with a kitchen, bathroom, living room and one or more bedrooms containing up to two (2) occupants per bedroom. Such unit shall contain a minimum of 200 square feet of living space per occupant intended primarily for Seasonal Employees. Housing Demand The rental market in Summit County continues to be tight. According to the August 2016 Summit County Housing Demand Update, vacancy rates have remained below 2% while rents have increased. Households must now earn over 100% AMI to afford median market rents. According to the Housing Update, Countywide there are 905 rental units needed by 2020 across a range of AMI levels. Of those 905 units, 185 are needed in the Snake River Basin. Housing Units in the Wintergreen Neighborhood The proposed Major PUD Modification specifically calls out three housing types, which are newly defined in Exhibit C, Definitions. These housing types include Low Income Rental Units, Long Term Rental Units, and Seasonal Housing Units. The Low Income Rental Units will be developed as part of the Low Income Housing Tax Credit (LIHTC) program and managed in accordance with their guidelines. The Low Income/ LIHTC units will be available for employees earning less than $12/hour and who qualify for the 60% Area Median Income (AMI) units. The applicant is seeking LIHTC funding to subsidize the development of 40 units targeting those at or below 60% AMI. The units will include one and two bedroom floor plans. Rents will be set in accordance with LIHTC requirements. The applicant notes that development of this product type is dependent on LIHTC funding as well as local gap funding. If this product type is not financially feasible, they will likely develop additional Long Term Rental Units. Staff would note that there is currently a county-wide need for rental units available to those making up to 60% AMI. The Long Term Rental Units will consist of 120 units targeted to serve year-round local salaried workers. These units will include one and two bedroom floor plans. There is no AMI-cap proposed for these units. The applicant notes that based on other projects within their development portfolio these units typically serve tenants who earn between % AMI. The Seasonal Housing Units will be two bedroom floor plans designed to ensure adequate living space and privacy for the tenants. Bedrooms are large enough to accommodate two single beds (un-bunked) in the bedrooms. In addition to the bedrooms, each unit includes two bathrooms, a kitchen, and living PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 6 of 19

10 room ( square feet total). The units are intended for up to two occupants per bedroom (or four occupants per unit), which results in approximately 200 square feet of living space per occupant. Conceptual floor plans have been provided by the applicant (Attached) and the proposed unit mix is noted in the table below. Similar to existing units, EHC s are proposed to be allocated to the various types of units as noted. Rental Housing Type Number of Units Employee Housing Total Potential EHC Credit (EHC) Generation Low Income Rental Units 1 Bedroom per bedroom 55 2 Bedroom per Bedroom 9 1 Building Total Long Term Rental Units 1 Bedroom per bedroom 12 2 Bedroom per bedroom 36 6 Buildings Total Seasonal Housing Units 2 Bedroom (2 occupants per bedroom) 12 1 bed = 1 EHC X 2 occupants per bedroom 3 Buildings Total Grand Total The proposed Low Income and Seasonal Units will be a significant contributor to meeting the needs identified in the Housing Demand Update as well as much of the projected future needs of the Keystone Resort PUD. The proposed mix of housing types will help fill the demand for at or below market rate rental units. Priority Leasing Process and Employee Housing Unit Credits While it is clear that development of the Wintergreen Neighborhood would provide a significant housing resource in Summit County, the applicant s request also proposes a significant change to the way Employee Housing Unit Credits (EHC) are accounted for in addition to a new priority-leasing program. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 7 of 19

11 To summarize the requirements of the current Keystone PUD, the Resort Owner/Developer (Vail Summit Resorts, Inc) must provide or arrange to provide for employee housing for 40% of the Peak Season FTE employees based on a comparison of the number of FTE employees and the number of Employee Housing Unit Credits allocated to existing units. This requirement is intended to provide a diversity of employee housing types and to meet the housing requirements of employees who work within the PUD and who work within the adjacent resort operations. The specific Keystone PUD requirements of the Owner to provide employee housing and the method of reporting compliance are described in Section B.6, Employee Housing. VSR and County staff have been developing projections to estimate the number of EHC that may be needed at buildout of the resort. At this point, staff estimates that at full build out the resort will require an additional EHC s. This development could provide a large portion of that need. The applicant also proposes to change the method by which beds within Wintergreen are counted as credits under Section B.6 of the PUD. Their request would include beds in the total EHC, available to, reported by VSR, and used at the discretion of the VSR in the following manner: All Long Term Rental Units would be counted as an EHC subject to the priority leasing process described in Exhibit P-4. The process described in P-4 requires that when a unit becomes available, priority leasing of the unit will be given to employees and employers who actually work within the PUD or within the adjacent resort operations as defined by the Keystone PUD. After a priority-leasing period of 20 calendar days following vacancy of the unit, the unit may be offered for lease to any County-wide employee or County-wide employer. In either case, Vail Summit Resorts, Inc gets full credit as an EHC regardless of where the occupant works or where the employer is located within the County. Low Income Rental Units are not able to be restricted under the LIHTC guidelines and cannot be subject to the priority leasing process. As such, the applicant requests that only units occupied by PUD employees will generate credits. Only Seasonal Housing Units occupied by PUD employees will generate credits. The Seasonal Units may be used at the discretion of VSR regardless of where the occupant works within the County. While staff understands and appreciates the fact that this project fills a current need in the Snake River Basin and in the County, we have concerns that the current structure proposed for the credits may result in a scenario where less than 40% of Keystone employees have employee housing available within the PUD. In addition, without a mechanism to qualify occupants based on income any employee regardless of need could occupy a unit within the Wintergreen Neighborhood. For example, a high-earning countywide employee could rent a unit or rents could increase to a level that excluded Keystone Resort PUD PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 8 of 19

12 employees and/or other county-wide employees in underserved AMI categories. While this may be an unlikely example, it shows that it is plausible that other unintended consequences could result from the proposed change. APPLICATION REFERRAL REVIEW COMMENTS As part of the review process for this application, notice of the proposal was distributed to several referral agencies, which took the opportunity to evaluate the proposal and note any areas of concern. Of those agencies that responded, many did not have substantive comments at this time, but may have further comments at subsequent review stages. Agency comments that should be considered as this proposal moves forward include: Colorado Department of Transportation The proposed PUD modification will require a new CDOT access permit. Conceptually, CDOT would only allow one access for this parcel. The parcel currently has one access to US 6. CDOT would grant an additional, gated, emergency access. CDOT recommends that the PUD have an internal connection to the Antlers Gulch development and an internal connection to the Sunrise development. Colorado Geological Survey No geologic or geotechnical information was included with the referral documents. CGS reviewed Wintergreen Filing #2 (November 20, 2000), and noted that the site is exposed to geologic hazards that will require characterization, analysis and, if necessary, mitigation. Specifically: Debris fan and debris flow hazard. The eastern portion of Wintergreen Neighborhood, corresponding to the currently proposed building area as shown on Exhibit D, Conceptual Plan on New Parcel (Norris Design/Gorman, November 21, 2016), is located on a mapped debris fan (Widmann et al, 2003, Geologic Map of the Keystone Quadrangle, Summit County, Colorado: Colorado Geological Survey, Open File Report OF02-03, scale 1:24,000). Large precipitation events could trigger debris/mud flows that may inundate proposed structures and improvements with dangerous amounts of water and sediment. Due to high sediment content, ability to entrain and transport gravel-, cobble-, and bouldersize rocks and debris, and unpredictable flow characteristics, debris flows pose hazards that are very different from sheetflow or channelized water flow hazards. A debris flood hazard analysis and, if necessary, a hazard mitigation plan should be developed by a qualified professional. The evaluation should include a calculation of anticipated, bulked sediment/debris volume, flood height, and velocity. Mitigation recommendations should include deflection/containment structure sizing, location, construction details, and a maintenance plan. Mitigation cannot exacerbate hazards to adjacent and down-slope properties. Debris flow hazard increases as a result of events that reduce hillside vegetation, such as avalanche, disease, wildfire, grading and other disturbances; debris flow mitigation structure(s) should be oversized to account for increased debris volumes as a result of wildfire. Summit County Engineering Department PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 9 of 19

13 Transit / Pedestrian Connectivity must be further studied / addressed. The proposed 180 Units on Parcel B of workforce housing will create new foot, vehicular and bus mass traffic patterns which have not been sufficiently detailed in the current application materials. A full drainage study addressing the current and developed drainage patterns on the property and any effects to Frey Gulch must be submitted before Overall Grading and Engineering Permit Approval. A full wetlands report from an Army Corps of Engineers Wetlands Consultant must be submitted. The current Site Plan Map appears to indicate construction / development in or adjacent to the submitted Draft wetlands location(s). Minimum 25 foot buffers from all existing wetlands will be required; any disturbance of wetlands will require a separate Wetlands Disturbance Permit, if it can be proven that no alternative to the wetlands disturbance is possible. Traffic Study Comments: The Keystone bus service is seasonal, running primarily in the winter months. The effects of the seasonal variation in the Keystone bus service on year round residents must be further addressed. The proposed County Workforce Housing Development Site will offer housing not to just Keystone resort and associated hospitality employees, but for general Summit County residents including those commuting to Breckenridge. The overall transit impacts and options for County-wide accessibility must be considered and addressed in the transportation study. The provision of a Summit Stage Swan Mountain Flyer stop at the existing Tennis Club road bus stop must be considered / addressed. Correction to the existing report: The report should address the *Eastbound* left turn lane, not west bound. The need for a westbound acceleration lane was not addressed in the report, nor was any effects on Antlers Gulch Road and/or the Landfill Road addressed. Cross connection to Tennis Club Road, Antlers Gulch Road, and Landfill Road were not considered in the Transportation report and need to be considered, as well as a secondary / emergency access to the proposed overall Wintergreen parcel. Keystone Neighborhood Company No comments at this time regarding the Major PUD Modification. As applicant works through the process with the county, applicant must submit site plan and other applicable materials as required to the Keystone Architectural Review Committee for their approval. Lake Dillon Fire-Rescue Listed below are the fire department comments and concerns: 1. The fire department has no on objections or concerns regarding a) the consolidating of parcels A, B and C, b) the reallocation of density within the proposed development, c) redefining eligibility for residents in the development. 2. Multiple-family residential developments having more than 200 dwelling units shall be provided with two separate and approved fire apparatus access roads. 3. Future site plan submittals shall include a Utility Plan that shows waterlines and fire hydrant locations. 4. Has a water system analysis been conducted to verify that the Snake River Water District can meet the requirement for pressure, volume and fire flow demand for this proposed development? PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 10 of 19

14 5. A narrative for the project shall include information on square footage of each building, number of dwelling units in each building, type of construction and an elevation drawing for all buildings. 6. Based on the proposed occupancy type for these buildings an approved fire sprinkler system will be required for each building. Size the waterline into each building to meet fire sprinkler and domestic use needs. 7. Are there plans for phased construction for this development? Snake River Water District The Water District has provided resolution indicating they will serve the development. Snake River Waste Water Treatment There are no sewer related issues or concerns with the PUD modification request. Summit County Tax Assessor No concerns. Colorado Parks and Wildlife 5 Pages see attached letter for a full accounting of comments. Major issues were related to the overall net loss of wildlife habitat in Summit County and the increased potential for human conflicts with wildlife such as black bears and moose. Maintaining wetlands and associated riparian vegetation should also be considered and is highly desirable. CPW supports the PUD modification as an overall improvement over the current development plan. Colorado State Forest Service The Colorado State Forest Service has given The Wintergreen sub a wildfire hazard rating of low. The absence of any topographical features, good roads, and proximity to a water source all helped to keep this rating at a low level. However, as a precautionary measure noncombustible and reflective signage materials and good defensible space are still recommended, along with maintenance of defensible space around buildings. As a rule of thumb, any coniferous trees within 100 feet of any structures or roads should be thinned to a crown spacing of at least 10 feet. We would also recommend reviewing the publication Protecting Your Home from Wildfire: Creating Wildfire-Defensible Zones for additional ways to improve the wildfire survivability of the property. MASTER PLAN POLICIES The Development Code considers general conformance with the provisions of master plans as a requirement for certain development applications, including Major PUD Modifications. The BOCC has the authority to consider, and even require, compliance with particular master plans or master plan policies in certain applications, if such policies are sufficiently specific to ensure due process to the applicant. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 11 of 19

15 Proposed modifications to the Keystone PUD are evaluated based on policies adopted in the Countywide Comprehensive Plan ( Comprehensive Plan ) and the Snake River Master Plan ( Master Plan ). These plans hold considerable weight in evaluating development applications and the goals and policies. In general, the Comprehensive Plan goals and policies set forth overall direction and elements to be included in the Basin Master Plans, and each Basin Master Plan builds off the Comprehensive Plan goals and policies to create goals and policies specific to each basin. These policies support the regulations in the Development Code, and play an integral role in evaluating rezoning applications. Since the Code requires general conformance rather than strict compliance with master plan policies, when an application fails to meet certain master plan polices, it may be found to meet other policies, which carry out other County and/or Basin goals. The following section discusses the Goals, Policies/Actions relevant to this Major PUD Modification application. Countywide Comprehensive Plan. Countywide Vision-Preserve and enhance our vibrant, attractive, and prosperous mountain community where people choose to live, work, recreate, and visit. Urban Land Use Goal A. Focus development within existing urban areas. Policy/Action 2. Future urban development should be focused within existing urban areas. General Land Use Goal C. Maintain the current level of density in Summit County. Policy/Action 1. Rezoning, PUD s, or PUD modifications that would result in higher residential densities or increased intensity of uses (e.g., increased vehicle trips, increased square footage) compared to that allowed by existing zoning is not allowed in the County. The Wintergreen Neighborhood is part of the existing Keystone Resort PUD. The Keystone Resort PUD has contemplated high-density development on the site for decades. The request would not result in higher residential densities or increased intensity of use. The request could be found to be in general conformance with this comprehensive plan policy. Housing Element Goal B. Maintain and ensure an adequate and diverse supply of local resident and affordable workforce housing in the County. Policy/Action 27. Seek opportunities to collaborate and develop strategies or implement programs to increase the supply of local resident housing. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 12 of 19

16 The proposed Major PUD Modification sets the stage for the development of 196 units on the site. Gorman and Company, Inc. will develop, own, and oversee management of the Wintergreen Neighborhood in partnership with VSR. The partnership includes a 99 year ground lease from the property owner, VSR, as well as a master lease on 36 units. The master lease enables Gorman and Company to raise private equity required to construction the project. They have also indicated that they will pursue LIHTC equity, local gap funding, and State HOME funding and private debt for the project. The units are intended for long-term and seasonal employees of VSR as well as other in-county employers. While the units are proposed to be restricted by a covenant limiting occupancy based upon employment (the long-term rental and seasonal units) or a combination of income and employment (the LIHTC units), Staff does have concerns about ensuring the long-term affordability of the units without additional restrictions, such as an AMI cap. If an AMI cap or other appropriate restriction on the longterm rental and seasonal rental units is added, the request could be found to be in general conformance with this comprehensive plan policy. Snake River Master Plan Land Use Development Patterns and Density Goal A. Future land use should be consistent with land use designations identified on the Land Use Map Policy/Action 1. The location and extent of intended land uses or densities shall be consistent with the land use designations delineated on the Land Use Map, and as further defined in Table 4 and the following goals and policies/actions of this plan. The modification request proposes no changes to the existing land use designations. The consolidation of Parcels A, B, and C and corresponding density transfer to a single parcel facilitates the efficient development of the property by concentrating density closer to Highway 6 and existing infrastructure. The request could be found to be in general conformance with this master plan policy. Separation and Open Space Buffers Policy/Action 2. Maintain separation and open space buffers between the communities of Dillon, Summit Cove, Keystone, and Montezuma. Backcountry and Open Space/Natural Resource/Recreation Lands Policy/Action 5. National Forest System lands designated as Open Space/Natural Resource/Recreation should continue to be protected from development, with uses that are consistent with the recreation and natural resource character and special use permits for the area. The modification request moves density from the existing Parcel B and C to allow for development closer to Highway 6. This change shifts the density of these parcels to more appropriate areas of the property and creates a larger buffer between the development area and adjacent Forest Service lands. The request could be found to be in general conformance with these master plan policies. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 13 of 19

17 Goal B. Maintain existing character in designated Residential Neighborhoods. Residential Neighborhood Density Policy/Action 2. Land Development or redevelopment in designated Residential Neighborhoods (as indentified on the Land Use Map) should be compatible with surrounding residential densities, uses and associated activities. Policy/Action 3. Proposed residential densities should be similar to the density of surrounding properties. The proposed modification does not increase the density allowed on the property. It does, however, consolidate density to a more appropriate area for development. The location and scale of development is consistent and compatible with adjacent properties. The request could be found to be in general conformance with these master plan polices. Relationship to the Surrounding Community, Neighborhood and Adjacent Development Policy/Action 6. Where development does occur, the development should be encouraged to be in harmony in design and appearance with surrounding structures and the neighborhood area. Policy/Action 7. New development should consider and incorporate appropriate existing site design and building orientation requirements in relationship to surrounding properties; setbacks, height, building mass (bulk and scale), lot coverage, parking, lighting, snow storage, and materials. Relationship to and Impact on Surrounding Land Uses, Natural Systems or Environmental Resources Policy/Action 8. New development should avoid, to the extent practicable, adverse impacts to visually important lands, prominent landscapes, visual quality, environmentally sensitive areas, critical habitat for threatened or endangered species, natural features, and historical or archaeological resources. The Keystone PUD establishes development standards for review of future site plan applications. The PUD Modification is not proposing to change the requirements of the PUD related to site development and layout. The request could be found to be in general conformance with these master plan policies. Impacts on Existing and Planned Services and Utilities Policy/Action 9. New development shall provide and plan for the availability of adequate infrastructure: Reductions in the existing level of service (LOS) standards should be avoided. New development shall maintain and improve connections (i.e. access or recreational pathways) Water and sanitary sewer are available to serve the property. The applicant has provided will serve letters from the appropriate utilities. The request could be found to be in general conformance with these master plan policies. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 14 of 19

18 Goal C. Increase the supply of local resident housing in the Snake River Basin through promoting of facilitating opportunities, strategies and proposals that guide, plan for and provide affordable workforce and employee housing. Policy/Action 1. Support the Countywide Comprehensive Plan goals and policies/actions regarding affordable workforce housing (e.g., deed restricted affordable workforce housing units shall be exempt from requirement to transfer density). Policy/Action 2. Potential Affordable Workforce Housing Sites/Locations: Wintergreen Neighborhood. The Wintergreen Neighborhood serves as a potential location to accommodate community-oriented affordable workforce and employee housing, in conjunction with other community facilities (e.g. childcare center, post office boxes, transit center, and limited neighborhood commercial). Neighborhood design should: provide adequate landscaping/buffering along Highway 6; address the wildlife movement corridor in the area and possible mitigation measures (as identified by the DOW); preserve or potentially relocate the historical cabin on the site; provide pedestrian connections, parks, open space and recreation areas; and avoid wetland disturbance. Additionally, future development on the property should be designed to provide an aesthetically pleasing entrance/gateway to the Keystone Resort area. Wintergreen is specifically referenced in the Snake River Master Plan related to development of affordable housing and community facilities, such as a childcare center. The proposal will provide 196 units of employee housing managed on behalf of VSR and potential provides a location for a childcare center. The residential units will be targeted at long term, seasonal, and low-income Summit County residents. As noted above, with additional restrictions in the form of an AMI cap or other appropriate limitation on occupancy for the long-term and seasonal units, the request could be found to be in general conformance with these master plan policies. Overall Conformance with Countywide Comprehensive Plan and Snake River Master Plan The Wintergreen Neighborhood is part of the existing Keystone Resort PUD and has been identified as a primary location for employee housing. The proposed changes to the PUD do not fundamentally change the character or intensity of uses of the site. Nor does it propose new land uses not already contemplated within the boundaries of the parcel consolidation. Combining the density onto a single parcel will facilitate a more efficient use of the property and allow steep slopes and visually sensitive areas to be preserved. The overall intent of the requested Major PUD Modification could be found to be in general conformance with the Snake River Master Plan and Countywide Comprehensive Plan Goals, Policies/Actions. CRITERIA FOR DECISION DISCUSSION The Planning Commission may recommend approval of a Major PUD Modification, and the BOCC may approve a Major PUD Modification zoning amendment, only if the application meets all relevant County regulations and standards and provided the Review Authority make the following findings: PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 15 of 19

19 A. The modification is consistent with the efficient development and preservation of the entire PUD. The PUD Modification proposal maintains the existing density and permitted uses of the Wintergreen site, including employee housing, resort support uses and community facilities, such as childcare. The provision of employee housing is a key goal of the Keystone PUD, and this proposal seeks to provide this use and to allow members of the Summit County workforce outside of Keystone to live at the site. Another overarching goal of the Keystone PUD is to preserve the natural environment, which is accomplished in this proposal by combining the parcels and clustering development closer to existing infrastructure and utilities. The proposal further enhances environmental protection by preserving and maintaining existing wetlands and will be designed to take wildlife corridors and habitat in account. If the Planning Commission were to find that combing three existing PUD parcels into one parcel for the more efficient use of the site and that the proposed text changes are consistent with the intent of the entire PUD, the criterion could be found to be met. B. The modification does not affect, in a substantially adverse manner, either the enjoyment of land abutting upon or across a street from the PUD or the public interest. The proposed clustering of the development will preserve open spaces and maintain connections to public trails to not interfere with the enjoyment of current trail users. The proposed project will meet other existing zoning requirements for the Keystone PUD, such as setbacks and building height. This criterion could be found to be met. C. The modification is not granted solely to confer a special benefit upon any person. The purpose of the development is to provide affordable housing for employees in the Keystone area as well as other members of the overall Summit County workforce. As noted, with the addition of an AMI cap or other appropriate occupancy limitation to ensure long-term affordability, the proposal meets the general intent to provide employee housing in the Snake River basin and County and the relevant goals and policies could be found to be met. If the application was found to meet the PUD provisions and the relevant Master Plan goals and policies, particularly that allocation of EHC is for any County-wide employee is a public benefit, it could be found that the modification would not confer a special benefit to the applicant, and the criterion could be found to be met. Additional information regarding the methodology of ensuring that the Wintergreen employee housing will remain affordable to Keystone PUD employees would be helpful in making this determination. D. The proposed PUD modification is in general conformance with the goals, polices/actions and provisions of the Summit County Countywide Comprehensive Plan and any applicable basin or subbasin master plans. The Comprehensive and Master Plan policies are discussed above; as described, the relevant goals and policies could be found to be met, with the addition of an AMI cap or other appropriate occupancy limitation to ensure long-term affordability of the units. If the application was found to meet the relevant Master Plan goals and policies, the criterion could be found to be met. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 16 of 19

20 E. The proposed PUD modification is consistent with the purpose and intent of the County's Zoning Regulations. The proposal is seeking to reallocate existing density on the site and does not propose a change in density or land uses. However, the proposal would create housing on a parcel designated for workforce housing that does not meet the strict definition in the County Land Use and Development Code for employee housing, as there is no specific rental rate limits associated with the employee units. The Keystone PUD does not currently have rental limits for employee units, but at the same time, the current PUD text also restricts the use of these units to Keystone PUD employees only. If the PUD text or covenant language was found to be adequate to ensure that the Wintergreen employee units would remain affordable to Keystone PUD employees, the intent of this regulation could be found to be met. The remainder of the zoning constraints, such as setbacks and building heights, will meet the existing Keystone PUD. Based on the conceptual plans presented with the application, it appears that the proposal can be developed in general conformance with applicable zoning requirements. If the application was found to meet the purpose and intent of the County s Zoning Regulations, the criterion could be found to be met. F. The proposed PUD modification is consistent with the County s Rezoning Policies. Section 3202 of the Land Use and Development Code establishes policies that apply to zoning amendments. These policies are intended to ensure that land with development constraints are avoided and sites are designed consistent with the terrain and natural features and are compatible with existing development. The policies also ensure that adequate infrastructure is available to accommodate the proposed amendment. Any potential development constraints on the property can be mitigated and/or avoided when development occurs; subsequent site plan applications will address specific issues noted by the referral agencies. If the application was found to meet the purpose and intent of the County rezoning policies, the criterion could be found to be met. G. The proposal is consistent with the policies constituting the purpose and intent allowing for the establishment of Planned Unit Development, as set forth in of this Code, as well as the policies supporting the purpose and intent of allowing a Major PUD Modification Zoning Amendment, per of this Code. This Code section includes a statement that PUDs be utilized to encourage innovations in residential, commercial, industrial, recreational and resort development by allowing for mixed land uses, variations in development densities and variety in the type, design, and layout of buildings. The Keystone PUD currently meets this intent by providing for a mix of uses, including provisions which ensure employee housing needs are met. The proposal is consistent with section by clustering development, preserving the natural features of the site and avoiding areas with development constraints to the extent possible while provided employee housing. This criterion could be found to be met. However, if the employee housing does not meet our regulations, this standard is not met. PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 17 of 19

21 H. In light of the purpose and intent of PUD designations and modifications, the proposal furthers the public health, safety integrity and general welfare, as well as efficiency and economy in the use of land and its resources. The proposed PUD modification recognizes the changes in the development of the resort, and that associated employee housing needs have changed since the original PUD approval in The efficient and economical use of land, as noted, could be found to be met. The proposed modifications allow for needed employee housing in the Keystone PUD, Snake River basin, as well as larger County. The public health, safety integrity and general welfare, could be found to be furthered, although Staff does still have concerns regarding ensuring the long-term affordability and occupancy without having restrictions on AMI. As noted, the proposal meets the general intent to provide employee housing in the Snake River basin and wider County and if it is found that the way EHC is allocated and affordability are adequately addressed, the criterion could be found to be met. I. The applicant has provided final evidence of adequate water, sewer, access, utilities and other required infrastructure to serve present demands, and adequate access and infrastructure is also available to serve reasonably anticipated future demands. Letters have been provided from the Snake River Sanitation District stating the adequate availability of both water and sewer. Dry utilities are available adjacent to the property. There is an existing access point from HWY 6 into the property. The landowner will work with CDOT to ensure additional accesses are feasible to serve future demands. This criterion could be found to be met. J. The Review Authority has reviewed and approved the PUD text and any revised exhibits, and, for the BOCC s review, the PUD is suitable for the Chairman s signature and recordation. To be considered if the proposed PUD Amendment is approved. As noted above, there is currently some uncertainty regarding the applicant s proposed PUD language and covenant for the housing units, regarding the allocation of EHC s and ensuring affordability for Keystone PUD employees. Once those issues are resolved, the PUD will be suitable for signature and recordation. STAFF RECOMMENDATION: The allocation of EHC s within the Keystone PUD for non-pud employees residing within the Wintergreen Neighborhood is the primary consideration for the PUD modification. The change in allocation policy provides a significant benefit to the property owner. However, the additional employee housing proposed is also a significant benefit to the community. It is unclear whether the proposed language will create unintended consequences that may negatively affect the ability to provide required employee housing for Keystone Resort PUD employees. Based upon conversations with VRS, Staff is hopeful that it can work with the applicant to come up with appropriate limitations on the long-term and seasonal units to address these concerns. In general, staff believes the concept of this project, which provides a variety of employee housing types in the Snake River Basin is supportable; however some fine-tuning of the proposed PUD text is PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 18 of 19

22 necessary in order to ensure that the project is consistent with the purpose and intent of the Keystone PUD and County regulations. In consideration of the upcoming rewrite of the Keystone PUD, we believe that allowing VSR to fully utilize EHC as presented is acceptable if we are able to ensure affordability to Keystone area employees. The attached proposed PUD text includes the changes that would be incorporated to make the PUD modification if approved. The general concept to provide additional employee housing in the Snake River Basin and County is acceptable. Staff recommends that if the Snake River Planning Commission finds that the PUD Modification Review Criteria have been met, that the SRPC recommend to the BOCC approval of PLN16-131, Major Amendment to the Keystone PUD for Wintergreen Employee Housing. ATTACHMENTS: Attachment A Application, Narrative, and Supplemental Information Attachment B PUD/Application Exhibits A-F Attachment C Keystone Exhibit C, Definitions Attachment D Proposed PUD Text Modifications Attachment E Proposed Exhibit P-4, Restrictive Covenants Attachment F Proposed Exhibit M-13, Neighborhood Densities Cc: Gorman and Company, Inc. Vail Summit Resorts, Inc. Scott Vargo, County Manager Thad Noll, Assistant County Manager Jim Curnutte, Community Development Director Keely Ambrose, Assistant County Attorney PLN Wintergreen Neighborhood/Keystone PUD Major Modification SRPC January 19, 2017 Page 19 of 19

23 Wintergreen Neighborhood Potion of the NW 1/4 Section 23, T 5S, R 77W of the 6th PM Lot A,B Wintergreen Sub #2 North of Highway 6 in Keystone, adjacent to Keystone Employee Housing and Antlers Gulch Wintergreen Subdivision, Filing No. 2 n/a PUD Parcels A, B, C x Kimball Crangle kcrangle@gormanusa.com 1060 Bannock St., Suite Denver, CO Vail Summit Resorts,Inc., Kevin Hopkins khopkins2@vailresorts.com Norris Design escott@norris-design.com P.O. Box n/a Frisco, CO Keystone PUD Existing Zoning 243 Existing Zoning Commercial /Resort Support n/a 28.4 n/a n/a Proposed 243 n/a n/a Major PUD Amendment to reallocate existing density on the Wintergreen site to develop affordable housing.

24 1060 Bannock St Suite 305 Denver, CO P: (303) F: (608) REAL ESTATE DEVELOPMENT MILWAUKEE MIAMI PHOENIX CHICAGO DENVER November 21, 2016 Don Reimer, P.E., AICP Planning Director Summit County Planning Department 0037 Peak One Drive Frisco, CO Dear Mr. Reimer: We are excited to submit our Major PUD Amendment Application on the Wintergreen parcel in Keystone to further our progress toward implementation of affordable Workforce Housing in Summit County. Gorman & Company, Inc. has 30 years experience developing some of the nation s highest quality workforce housing and neighborhood revitalization projects in urban and resort areas. We have been recognized as one of the nation s Top 50 Affordable Housing Developers by Affordable Housing Finance and regularly receive local and national recognition for our developments. We believe that this will be an important project for the residents of Summit County. The site offers the ability to create a number of newly constructed affordable Workforce Housing rental units and will create a vibrant enclave of housing that will enrich the lives of future Wintergreen residents. Our team s implementation with similar work goes back decades and includes the design and development of multiphased sites, most recently in Vail with the Lion s Ridge neighborhood. Gorman & Company brings a robust breadth of experience in designing, financing, developing, and managing cutting edge models of mixed-income housing and mixed-use sites. Based on the extent of the project at Wintergreen, we are requesting a waiver of a work session application by the Planning Director. In our initial meetings with the County Planning staff, the primary question of the PUD amendment is how the employee use restriction may be modified. We believe a work session will not be beneficial due to the limited scope of the primary question, and in the interest of timing to get units under construction; we would like to proceed directly with our Major PUD Amendment Application. Thank you for your time and your consideration of our request and application. Please feel free to call me at (303) or me at kcrangle@gormanusa.com with any questions or comments. Sincerely, Kimball Crangle Colorado Market President Gorman & Company, Inc REAL ESTATE DEVELOPMENT AND MANAGEMENT 1060 Bannock Street #305 Denver, CO phone fax:

25 Wintergreen Neighborhood Narrative Introduction Gorman & Company, Inc. is pleased to submit a Major PUD Amendment Application for the Wintergreen Neighborhood in the Keystone PUD. The Wintergreen site has always been envisioned to provide affordable workforce housing in the Keystone area, and this proposal seeks to deliver these much needed homes. The goals for the PUD Amendment are to: (1) reallocate density within the existing Wintergreen property boundary to allow for more appropriate development of the site, (2) amend and add certain defi nitions related to permitted occupancy. With this application Gorman is requesting the following revisions to the Keystone PUD: 1. Section A, Permitted Uses and Development Plan, Wintergreen Neighborhood Combine Parcels A, B and C to create a New Parcel, no change in number of units proposed. Provide up to 243 Employee Housing Units on the New Parcel. 2. Section B, Development Standards, (6) Employee Housing Includes specifi cs for the proposed Wintergreen housing types, permitted occupancy, associated Employee Housing Credits (EHC) and references new Exhibit P Wintergreen Neighborhood Boundary Map, Development Plan Depicts New Parcel, combined Parcels A, B, and C. 4. Exhibit C, Keystone Resort Defi nitions New defi nitions provided that create allowances for County-wide employees to live in Wintergreen, not just Keystone Resort PUD employees. 5. New Exhibit M-11, Neighborhood Densities Updates overall land use matrix to combine Parcels A, B and C into a New Parcel. 6. New Exhibit P-4 Provides additional restrictions on leasing and occupancy at Wintergreen. Gorman has been working with Vail Summit Resorts, Inc., the owner of Wintergreen, on a long-term ground lease, which makes the development concept of affordable workforce housing fi nancially feasible. Importantly, Wintergreen sits in the heart of an area with employees working for $ $15.00/hour as well as those earning year-round salaries, and is signifi cantly under-served with affordable rental housing. Wintergreen is located between Keystone and Dillon on the north side of Highway 6. The site location provides central access to many employers in the County: the outlet malls in Silverthorne (6 miles away), Summit County Government (8 miles away), and two ski areas, Keystone Resort (2 miles) and Arapahoe Basin (6.7 miles). There is nearby access to County Schools (1.8 to 6 miles) and grocery/retail shops in Dillon (5 miles). The site is also within reasonable proximity to the retail and accommodation businesses that support Keystone, Frisco, Dillon, Silverthorne and Breckenridge (all within 12 miles of the subject site). The accessibility of employment from the subject site enhances its ability to provide the much needed affordable housing for the workforce of Summit County. In an effort to help relieve the incredibly short supply of housing options for residents working in Summit County, the Wintergreen PUD Amendment proposes to redefi ne who is eligible to live in this neighborhood. This would mean expanding from Keystone Resort PUD-only employees to allowing residents who work Summit County. Neighborhood Vision The Wintergreen Neighborhood will provide a quality, affordable community for residents of Summit County. The housing program is designed to provide a spectrum of affordable rental housing types with opportunities for occupants to stay

26 in the neighborhood as they advance in their careers. The neighborhood plan is designed to accommodate a variety of multi-family homes while providing adequate parking, amenities, trails and open space to its residents. The multi-family buildings are proposed to be benched into the landscape, allowing the apartment homes to take advantage of the views and southern solar exposure. Please reference the illustrative conceptual site plan included with this submission for a graphic representation. An integral part of the community design is the development of a strong network of pedestrian circulation. An internal trail and sidewalk system provides safe connections to parking, potential Keystone shuttle stop, adjacent open space and the existing Frey Gulch Trail System. Gorman will collaborate with adjacent property owners to create connections for Wintergreen residents to Keystone Grocery and Gas, the Summit Stage bus stop and also the existing Keystone shuttle stop on Tennis Club Road. Land Use The Wintergreen neighborhood development area is located on the proposed New Parcel, which is a combination of Parcels A, B and C, a 28.4 acre portion of the 61-acre Wintergreen tract. The PUD Amendment proposes to maintain the same number of dwelling units on the site (243 units) and continues to allow for inclusion of the supportive land uses, such as a child-care facility. The following chart describes and compares the PUD permitted uses and density. Table 1 - PUD Comparison Chart (1) Existing PUD Parcels Existing PUD Acres, Proposed PUD Proposed PUD Acres, Units, Land Uses Parcels Units Land Uses Parcel A 10.4 Acres 23 Units Commercial 2,000 sf Resort Support Uses Child-care Community facilities Other public areas New Parcel (Combination of A, B and C) 28.4 Acres 243 Units Commercial 2,000 sf Resort Support Uses Child-care Community facilities Other public areas Parcel B 13.9 Acres 180 Units Resort Support Uses Child-care Community facilities Other public areas Parcel C 4.1 acres 40 Units Resort Support Uses Child-care Community facilities Other public areas Parcel D 8 Acres Open Space, School Site Parcel D No change Parcel E 25.3 Acres Open Space Parcel E (1) See PUD Guide Exhibits included with submittal for detailed mark-up. No change

27 There are many benefi ts to combining Wintergreen Parcels A, B and C as proposed with this PUD Amendment. The existing allocation of density within the PUD locates a majority of the units away from existing utility and transportation infrastructure and into an area with steeper grades. Through the creation of the New Parcel, the Wintergreen neighborhood can be clustered and limit disturbance on the more steeply sloped areas, while preserving a large amount of open space, existing wetlands and Frey Gulch. This will create the opportunity to optimize the site by minimizing site and infrastructure costs, as well as future operations and maintenance costs for property management, an important consideration for affordable workforce housing. Additionally, creating a more compact neighborhood footprint will increase the soil stability and cluster development closer to the Highway 6 and adjacent amenities. Clustering development in areas away from USFS lands and Frey Gulch allows a connected and undisturbed open space for wildlife movement and trail users. Compliance with the PUD Wintergreen is not proposing to change any requirements of the PUD related to parking, setbacks, building heights, etc. The neighborhood site plan will be developed with these requirements in mind, which will be shown in more detail through a future Site Plan submittal and review with the County. Existing Conditions Site The proposed New Parcel area is bounded on the north by USFS lands, to the east by existing Keystone seasonal housing units, on the south by Highway 6 and on the west by Frey Gulch and the Antlers Gulch townhomes. The project site is primarily undeveloped, with the exception of an existing auxiliary horse stable that is minimally used by Keystone and regular use of the land for hiking and biking. The remainder of the site is sage brush and native grass open space with many social trail connections to USFS land and Frey Gulch. The open space portion of the site is mostly treed, however, there are many dead Lodgepole Pine within the site boundary. An abandoned irrigation ditch runs east to west across the property which has more recently been utilized as a social trail connecting residents from Tennis Club area to the Frey Gulch Trail. Wetlands At the southwest area of the site is Frey Gulch and existing wetlands, which create a natural buffer between Wintergreen and the existing Antlers Gulch subdivision. The proposed development will be setback from these sensitive environmental areas to protect the existing wetlands and Frey Gulch. Wetland mapping was completed in the summer months of 2016, and has been provided with this submittal

28 Utilities Wintergreen is located within the Snake River Water District Boundary. A letter is attached that shows the district s ability to provide service to the neighborhood. An existing 8 water line is located adjacent to the Wintergreen site, parallel to Highway 6. From Highway 6 the site slopes up to the north with approximately 110 feet of grade change. Without a booster pump, water cannot be provided to buildings taller than elevation 9310, potentially constraining the developable area of the site to the lower portion near Highway 6 which is at approximately elevation 9252 at the existing access point into the site. Sanitary sewer will be provided by the Snake River Sanitation District. A letter is attached the shows the district s ability to provide service to the neighborhood. An existing sanitary sewer line is located to the east of the site in a private access and utility easement located within the Antler s Gulch Townhomes site. In addition to wet utilities, dry utilities are available adjacent to the site. Transportation Wintergreen currently has one access point from Highway 6. There is a divided median along the length of Highway 6 in this area, and the existing access point includes a break in the median and left turning lane into the property. There is an existing private access easement shown in the survey for the property which indicates another potential access onto the Highway between the existing access point and Antlers Gulch. Initial conversations with CDOT regarding this access point have indicated that they may consider a secondary emergency access point in this location. Additional secondary access will be explored with the site plan submittal, and could include a connection to the east towards the Sunrise Keystone Housing development or to the west towards Antlers Gulch. Gorman and Company would prefer an easterly access or secondary connection to CDOT to avoid costly wetland disturbances, impacts to Frey Gulch and adjacent residences. A traffi c generation letter for the proposed fi rst phases of workforce housing has been included with this submittal along with correspondence with CDOT. Wildlife The previously completed Keystone PUD wildlife study indicates the Wintergreen site has minimal big game movement because of regular human use, which has limited an abundance of wildlife on the property. This proposal recognizes the importance of wildlife in the area and proposes to cluster development closer to Highway 6 and adjacent residential development to limit site disturbance. Wetlands and Frey Gulch areas are proposed to be protected and connected to the adjacent USFS lands allowing continued wildlife habitat. No additional study is required with this submission because of these known factors. Phasing and Timeline Timeline The affordable housing shortage has reached a crisis level in the County, and Gorman and Company would like to build as many units as possible as soon as possible. The potential timeline for County review, including Major PUD Amendment, Site Plan and Subdivision Exemption is as follows: Submit for Major PUD Amendment by November 21, 2016 SRPC Hearing for Major PUD Amendment January 19, 2017 BOCC Hearing (potential approval of) Major PUD Amendment February 14, 2017 Submit Site Plan application by January 16, 2017 SRPC Hearing (potential approval of) Site Plan March 16, 2017 Submit Subdivision Exemption Application by January 9,

29 2017 BOCC Hearing on Subdivision Exemption March 14, 2017 Assuming we follow the aforementioned schedule of approvals, Gorman will fi nalize design and due diligence on the development concept and develop construction documents. We will target submission of a building permit in third quarter of 2017 to fourth quarter Following construction commencement, units will be available for lease approximately 15 months later. Phasing Gorman is proposing to build approximately 196 multifamily residential units. The 196 units are preliminary identifi ed per the illustrative conceptual plan as follows: Table 2 Proposed (1) Unit Type Proposed Phasing 36 Seasonal Units Immediately 40 Tax Credit Units Pending Tax Credit Approval / Financing 120 Year Round Professional Units Immediately Total: 196 Units (1) See PUD Guide Exhibits included with submittal for detailed mark-up. Parking and associated improvements will be provided with each phase of units built on the site. Conclusion The Gorman team is excited about the opportunity to deliver much needed affordable housing in Summit County at the Wintergreen Neighborhood in Keystone. Should the County require additional information or need clarifi cation on items included in this application, please communicate with the development and design team. Members of the team include: Development Team: Gorman and Company Kimball Crangle, kcrangle@gormanusa.com, Wright and Company Jen Wright, wjwright@wright and companyinc.com, Liv Sotheby s International Realty Jack Wolfe, jack.wolfe@sothebysrealty.com, Design Team: Planning / Landscape Architecture, Norris Design Elena Scott, escott@norris-design.com, Civil Engineering, Tetra Tech Steve Tice, steve.tice@tetratech.com, Architect, Gorman and Company Sarah Ponko, sponko@gormanusa.com, Architect, O Bryan Partnership Ken O Bryan, KenO@oparch.com, Surveyor, Range West Bob Johns, bob@rangewestinc.com, Wetland Delineation, Wester Ecological Resources Heather Houston, heather@westerneco.com, Traffi c, McDowell Engineering Kari McDowell, kari@mcdowelleng.com,

30 Wintergreen PUD Amendment January 4, 2017 Supplemental information: Gorman & Company, Inc. as the property developer, owner and manager. Gorman & Company, Inc. will develop, own and oversee management of Wintergreen. As the developer we will create an affiliated LLC company that will oversee design, budget, financial closing, all financial risks, construction, lease up and long term maintenance and operations of Wintergreen. We will contract with a local third-party property management firm for Wintergreen management, but will oversee the management with our internal Property Management Department. As the owner/manager we will oversee all unit types that are developed at Wintergreen, including any Low Income Housing Tax Credit, professional year round and/or seasonal unit types. We have an inherent and vested interest in ensuring the similar high quality leasing standards across our entire product spectrum at Wintergreen, to ensure a solid brand and reputation for the property. Gorman & Company has over 30 years of experience in developing some of the nation s highest quality workforce housing and neighborhood revitalization projects. We work closely with local governments and community groups to meet their development, planning, economic and social goals. With over 80 community revitalization projects in our portfolio, Gorman has utilized a variety of funding mechanisms including Low Income Housing Tax Credit, New Market Tax Credit, HOME, CDBG, AHP, EB-5, and private equity and debt, to accomplish revitalization goals for communities. Our staff brings a broad range of development, construction and real life experience to the development process and applies those skills to solve problems and help communities bring plans to reality. Of the projects we have completed over the past 30 years, the company has never had a foreclosure, never defaulted, and never has had the general partner replaced by the investor. Our reputation is our business and we are very well versed in deed restrictions and the audits that accompany various tenant requirements for a property. We will maintain records of the Priority Leasing Process that we follow and adhere to the policy as written in the PUD. We are frequently audited as part of our financial obligations and the deed restrictions they carry as such, we welcome the opportunity to work with Summit County to ensure we are following the Priority Leasing Process at Wintergreen. Ground Lease Gorman will be leasing the ground at Wintergreen from Vail Resorts for a 99 year period (with a 99 year renewal option). The Ground Lease enables the Wintergreen project concept to financially pencil. Without the Ground Lease structure, the land would have to be acquired and would create an infeasible Workforce Housing development model. The Ground Lease effectively reduces the development costs and thus allows us the ability to cover the construction costs with private equity and a mortgage. In the instance of the Low Income Housing Tax Credits units, other soft funding sources are required to ensure financial feasibility. In the instance of the Seasonal Housing units, a Master Lease by Vail Resorts will block 1

31 lease 36 units on a year round basis for a significant period of time. The Master Lease enables us to raise the private equity and debt required to afford construction of the project. Housing Demand is High: in the Snake River Basin and Summit County The rental market through the County has been strong since According to the 2016 Summit County Housing Demand Update from August 2016, vacancy rates have remained below 2% since that time and rents have continued to increase. Households must now earn over 100% AMI to afford median market rents. The 2016 Housing Demand Update shows that the Snake River Basin and Summit County overall have a shortage of housing. This update includes both the needed catch-up units that weren t built following the 2013 Housing Needs Assessment and additional need estimated through The total catch-up plus keep-up for the County is 905 rental units and 185 of those rental units are needed in the Snake River Basin. The proposed LIHTC and seasonal units (40 units and 36 units, respectively) at Wintergreen will be a significant contributor to meeting this demand for below market-rate rental units. The report goes on to indicate that 30 rentals for workforce housing renters (those earning 100% AMI) are needed in the Snake River Basin and 182 rentals are needed County Wide. The Priority Leasing Process will likely capture Snake River Basin renters due to this demand. 2 Source: 2016 Housing Demand Update, WSW Consulting and Rees Consulting

32 Housing Units at Wintergreen There are three housing types conceptualized at the Wintergreen site: Seasonal Housing units, Low Income Housing Tax Credit units and Professional Year Round Housing units. We see the need for housing units in Summit County that span a spectrum and therefore are proposing a progression of housing options for renters. There are residents who first need housing in the County as a seasonal renter since their employment is only seasonal. If those residents elect to remain in the County, they often look for a couple of seasonal jobs to create a year-round paycheck. These individuals are typically earning $10-$12 per hour and therefore will qualify for the 60% AMI LIHTC housing. For individuals who are working in the County and earning a salary above 60% AMI, the housing supply is incredibly short and continues to decrease. The Year Round Professional Housing becomes an important housing product for those households as well as for their employers who have trouble attracting or retaining workers. It will also retain employers or employees in the community as they transition from a tenant household and search for owner-occupied housing options. Seasonal Housing Units These units will be 2-bedroom units, designed to ensure adequate living spaces and privacy for the tenants with bedrooms large enough to accompany two single beds (un-bunked) in the bedrooms. We have also included two bathrooms and very ample storage spaces. Our units will be between 800 and 850 square feet. While initially intended for occupancy by seasonal employees, these units are designed to be marketable to a non-seasonal housing tenant in the future. Therefore, the design ensures that the layout works for traditional year-round professional housing tenants, while providing a very comfortable and livable design while occupied by seasonal housing tenants. These units are proposed for up to 2 occupants per bedroom (or up to 4 persons per unit), which will allow approximately 200 square feet per occupant. Parking is proposed at the levels identified in the PUD, providing sufficient parking for both anticipated seasonal occupancy in the near term and long term professional occupancy in the future. Low Income Housing Tax Credit (LIHTC) Housing Units We have applied for LIHTC funds to help subsidize the development of 40 units targeting those at or below 60% of the Area Median Income. These units will include one and two-bedroom floor plans. For Summit County, the chart below illustrates the AMI levels and rent levels for each unit (depending on household size). The development of this product type is dependent on LIHTC equity as well as local gap funding, State HOME funding and private debt. Proposed LIHTC Unit Mix # Bed Description Set # Area Utility Net room(s) (optional) Aside Units (Sq. Ft.) Allowance Rent 1 PBV* 30% $61 30% of income 1 60% $61 $866 2 PBV* 30% $71 30% of income 2 60% $71 $1,040 *we have contemplated the inclusion of a handful of Project Based Vouchers that require additional investigation. 3

33 Year Round Professional Housing Units We intend to construct 120 units of housing that will serve those in the local workforce who are year round workers and likely salary earners. These units will include one and two-bedroom floor plans. While there will not be an AMI-cap on the residents, our experience has shown that these tenants are generally between 80% and 100% AMI, depending on household size. We recently completed a project in the Town of Vail serving this constituency and experienced a very fast lease up and stabilization of those working in Eagle County. Priority Leasing Process and Housing Credits to Vail Resorts Housing Credits at Wintergreen: As Wintergreen will be providing a significant housing resource for all of Summit County, we are proposing that beds at Wintergreen count as credits under Section 6 of the PUD and included in the total available credits, available to and reported by Keystone Resort and used at the discretion of the Resort Owner/Operator. We are proposing that the Housing Credits be calculated on the Year Round Professional Units subject to a Priority Leasing Process. We have proposed that: Priority shall be given to Employees and Employers, as defined in the Keystone Resort PUD. Such priority shall be implemented by providing exclusive, priority leasing period of twenty (20) calendar days upon vacancy of any unit. Meaning, upon initial lease-up of the project or upon receipt of notification from an existing tenant of their intent to vacate a unit, the unit shall be held exclusively for offering to an Employee or Employer for a period of twenty (20) calendar days. At such time, if the unit is not leased by an Employee or Employer, the unit may be offered to a County-wide Employee or County-wide Employer. Priority Leasing Process: The Priority Leasing Process is a way to ensure that we are offering units first and foremost to PUD employees. If at the end of the 20 day Priority Leasing period a qualified PUD employee has not leased a vacant unit, the unit can be filled by a non-pud employee who works in Summit County. Upon the construction completion of the project, we will offer all of the units to PUD employees subject to the Priority Leasing Process. Upon any vacancy in a unit, we will again follow the Priority Leasing Process. To expedite unit leasing, we will work with PUD employers to maintain information about the property and allow interested tenants to put their name on an interest list, which we will use when a unit becomes vacant. The 20 day time period is important as it will allow us to fill a vacant unit within a month, keeping our vacancy rate low which is a requirement of our financing. All potential tenants will have an application process including credit screening, criminal background checks and two years of landlord references. There is an appeal process if denied, to cover extenuating circumstances. In the LIHTC units, we are not able to restrict our tenants to a specific workforce requirement or geographic requirement. We can only require tenants to be within the established Area Median Income guidelines established by the IRS Section 42 code. As such, only units that are occupied by PUD 4

34 employees or Qualified Occupants, as defined in the PUD, will generate credits. Such credits will be included in the total credits, available to and reported by Keystone Resort and used at the discretion of the Resort Owner/Operator. In the Seasonal Units, similar to the LIHTC units, only units that are occupied by PUD employees or Qualified Occupants, as defined in the PUD, will generate credits. Such credits will be included in the total credits, available to and reported by Keystone Resort and used at the discretion of the Resort Owner/Operator. 5

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